REPORT ON HUMAN RESOURCE PRACTICES IN SERVICE INDUSTRY PROJECT

SUBMITTED BY SUJATA BALU NARHE T.Y.BMS SEMISTER- V : 2012-2013

PROJECT GUIDE PROF: SELVI NADAR

UNIVERSITY OF MUMBAI RAMNIRANJAN JHUNJHUNWALA COLLEGE GHATKOPAR (WEST) MUMBAI-400086

DECLARATION
I, SUJATA BALU NARHE, the student of RAMNIRANJAN JHUNJHUNWALA COLLEGE for T.Y.BMS SEMISTER- V : (2012-2013) do hereby declare that I have completed the project work titled HR PRACTICES IN SERVICE INDUSTRY as part of my academic fulfillment.

The information contain in this project is true and original to the best of my knowledge and belief.

Date

signature of the

CERTIFICATE

I, PROF: SELVI NADAR do hereby certify that SUJATA BALU NARHE is a student of RAMNIRANJAN JHUNJHUNWALA COLLEGE for T.Y.BMS SEMISTER- V my guidance. : 2012-2013 she has completed the project work on HR

PRACTICES IN SERVICE INDUSTRY, as a part of her academic fulfillment ,under

The information contain in this project is true and original to the best of my knowledge and belief.

Signature of principal Project guide

signature of

ACKNOWLEDMENT
I take this opportunity to extend my profound sense of gratitude and heart felt appreciation to PROF. SELVI NADAR for their guidance at all stages of my project. i would like to thank for their annotation and suggestions during the development of this project and also for taking out a time from their busy schedule,

Prof. Dr. Usha Mukundan

Finally I would like to thank all those wh0 were directly and indirectly involved in this project to sum it all, I would like to say is . Your experience and co-operation along with my efforts has helped me to successfully complete this project.

Date :

sujata Narhe

EXECUTIVE SUMMARY

Human resources development (HRD) is being viewed as an important strategic approach to improve productivity, efficiency and profitability. It is a planned and continuous effort by management to improve employee competency levels and organizational performance through training and development programs. Development refers to the acquisition of knowledge and skills, and behaviors that improve employees ability to meet changes in job requirement and in client and customer demands. Raining usually focuses on employees current jobs, whilst development helps prepare them for a variety of jobs in the company and increases their ability to move into jobs that may not exist. The general HRD process that helps facilitate change involves the following steps: (1) Determine HRD needs; (2) establish specific objectives; (3) select HRD methods; (4) select HRD media; (5) Implement HRD programs; and (6) Evaluate HRD programs.

INDEX

CHAPTERS 1.

TOPICS MEANING OF HUMAN RESOURCE MANAGEMENT

PAGE NO. 01

2. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT 3. Need for Human Resource Management

09

10

4.

Managers Role in Human Resource Management

12

5.

HR MANAGEMENT PROCESS HR PRACTICES IN TATA

14

6.

COMMUNICATION

19

HUMAN RESOURCE PRACTICES 7. IN HOTEL TAJ CONCLUSION 8. 7. SOME OTHER PRACTICES OF HR 41 47 38

MEANING OF HUMAN RESOURCE MANAGEMENT

Human resources are the set of individuals who make up the workforce of an organization Human resource management is the planning ,organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual organizational and societal objectives are accomplished. -Edwin b. Flippo Human resource management is the process of acquiring, training, attending to their labour relation, health, safety and fairness concern

In governing human resources, three major trends are typically considered:

1. Demographics: the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc.

Diversity: the variation within the population/workplace. Changes in society now

mean that a larger proportion of organizations are made up of "baby-boomers" or older employees in comparison to thirty years ago. Advocates of "workplace diversity" advocate an employee base that is a mirror reflection of the make-up of society insofar as race, gender, sexual orientation etc.

Skills and qualifications: as industries move from manual to more managerial

professions so does the need for more highly skilled graduates. If the market is "tight" (i.e. not enough staff for the jobs), employers must compete for employees by offering financial

rewards, community investment, etc. In regard to how individuals respond to the changes in a labor market, the following must be understood:

Geographical spread: how far is the job from the individual? The distance to travel
to work should be in line with the pay offered, and the transportation and infrastructure of the area also influence who applies for a post.

Occupational structure: the norms and values of the different careers within an
organization. Mahoney 1989 developed 3 different types of occupational structure, namely, craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed).

Generational difference: different age categories of employees have certain

characteristics, for example, their behavior and their expectations of the organization.

The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially workforce centered whereas human resource management is resource centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.

FUNCTION OF HUMAN RESOURCE MANAGEMENT

PLANNING

DIRECTING

ORAGNISING

STAFFING

CONTROLLING

CO ORDANATION

PLANNING Planning is considered to be a primary function of management. It determines the primary function of organization planning is the rational and systematic way of making a decision today that affect the future of the organization Planning is the continuous process of making a present entrepreneurial decision systematically and with the best possible knowledge

Oragnising
Organizing can be define as the process of establishing relationship among the members of enterprises the relationship is created in terms of authority and responsibility Thus organizing refers to the identification and grouping of the activities in order to

perform the required activities and dividing them among the individuals The process of organizing includes the following steps 1. Determination of objectives 2. Decisions of authority 3. Fitting individual in the job 4. Developing relationship in terms of authority and responsibility

STAFFING
Staffing refers to manning the organization structure through proper and effective selection, appraisal, and development of personnel to fill the rolls designed into structure It includes 1.the selection of right person 2.training to those needy person 3. promotion of best person 4. retirement of old person STEPS IN STAFFING 1.manpower planning 2.job analysis 3.recriutment 4.selection 5.placement and orientation

6.training 7.performance appraisal 8.promotion and transfer 9.compensation 10.maintenances

DIRECTING ACCORDING TO PETER DRUCKER directing is the part of management process which actuates the oragnisation member to work efficiently and effectively to the attainment of goals Directing has following sub function 1. Leadership 2. Communication 3. Motivation

CONTROLLING Control is the very essential in both oraganisation living and in living organization when the things happen according to the plan it considered to be a control Controlling establish standard of performance and compare actual with planned performance in order to determine whether it going according to the plan or not STEPA IN CONTROLLING

1.establlishing standard 2.measuring performance 3.camparing measured performance with performance standard 4.taking corrective action

Service Sector in India

Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively. The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy. Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others. The various sectors that combine together to constitute service industry in India are: 1.Trade 2.Hotels and Restaurants 3.Railways 4.Other Transport & Storage 5.Communication (Post, Telecom) 6.Banking 7.Insurance

8.Dwellings, Real Estate Business Services 9.Public Administration; Defence 10.Personal Services 11.Community Services 12.Other Services There was marked acceleration in services sector growth in the eighties and nineties, especially in the nineties. While the share of services in India's GDP increased by 21 per cent points in the 50 years between 1950 and 2000, nearly 40 per cent of that increase was concentrated in the nineties. While almost all service sectors participated in this boom, growth was fastest in communications, banking, hotels and restaurants, community services, trade and business services. One of the reasons for the sudden growth in the services sector in India in the nineties was the liberalization in the regulatory framework that gave rise to innovation and higher exports from the services sector. The boom in the services sector has been relatively "jobless". The rise in services share in GDP has not accompanied by proportionate increase in the sector's share of national employment. Some economists have also cautioned that service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub.

Need for Human Resource Management

Human Resource Management helps in creating better reporting between the management and the subordinates. It helps subordinates to realize individual and organizational goals. Human resources management is the backbone of every type of business organization. The triumph of every organization depends upon the worth of persons it employs. Human resources management helps in spotting the exact individual for the precise job. Suitability for the job and quality of work go hand in hand in determining the quality of any work force.

There is wide spread unrest in industries these days. Strained worker management relations, lack of confidence in each other and emergence of militancy in trade unions have become the order of the day. These factors have created a gap among subordinates and managements.

Both sides are talking about exploitation by the other side. In the absence of cordiality in an organization the performance of the workers is adversely affected. HRM is required to create proper understanding among the workers and the management.

The subordinates are developed to meet their individual and organizational objectives. The subordinates are convinced that various managerial actions can help them in accomplishing their motives besides helping the organization.

There is a humanization of work environment in industrialized countries like Japan, USA, UK, etc. Globalization of economy has exposed the industry in developing countries to international competition. An improvement in efficiency and quality of work can come only when workers develop organizational commitments.

Better communication channels have revolutionized the vital areas of business. There is a need to cope with the new and changing situation. The operational efficiency of employees must improve to face the new challenges.

Political philosophy has undergone change all over the world. The new approach is to develop human resource properly for making its better use. The technological changes have necessitated the use of sophisticated machines.

For installation and monitoring of machines, maintenance and controlling of operations, trained and skilled people are needed. There is a need for regular training for coping with the emerging situations. This training needs to be imparted at various levels in a business.

Managers Role in Human Resource Management

When you put together any sort of a team, it is very likely that youll have some conflicts or at least a difference of opinion among some of the members Now, this could actually turn out to be a good thing; for instance, if handled properly it can facilitate constructive alternatives, brainstorming, and an open-minded point of view. But it can also be distracting and counterproductive. The success of any project depends to a great extent on the Project Managers ability to lead and bring individuals from different backgrounds together to build a team that is cohesive and productive. You need to be supportive of your team and keep them motivated towards the accomplishment of the project objectives. Keeping them working together to ensure that there are no distractions and confusion is an important role of a Project Manager. A project manager needs to: 1. Fully understand the importance of the team. 2. Identify the team members and other key stakeholders on the project. 3. Chalk out the plan for HR and staffing. 4. Negotiate for skilled resources on the team as required. 5. Obtain funds, sufficient workspace and other necessary resources for the team. 6. Be keenly aware of the strengths and weaknesses of each team member. 7. Establish trust and confidence with the team. 8. Review team performance from time to time and provide feedback to members. 9. Acknowledge and reward good performers. 10. Nurture the team through strong leadership and guidance, including mentoring, education and on-the-job training. It is the duty of the Project Manager to effectively assemble, cultivate and manage the team. In order to be good at that, you need to be aware of the processes that will help you in your effort.

HUMEN RESOURCE MANAGEMENT PROCESS

Develop human resource plan:

It involves the identification and documenting of project roles and responsibilities, required skills, organizational relationships, and creating a staffing plan. This is part of the Planning process group.

Acquire project team:

This involves looking for the availability of the required human resources and assembling the team necessary to successfully complete the project. Its a part of the Executing process group.

Develop project team:

This is about improving the team dynamics and its competency to perform better as part of the overall project team. Its a part of the Executing process group.

Manage project team It involves evaluating individual team member performance,

providing feedback, managing and resolving conflicts, and managing changes to optimize the teams performance. This is also a part of the Executing process group.

PROCESS OF HR
Each organization works towards the realization of one vision. The same is achieved by formulation of certain strategies and execution of the same, which is done by the HR department. At the base of this strategy formulation lie various processes and the effectiveness of the former lies in the design of these processes. But what exactly are and entails these processes? Lets read further and explore. The following are the various HR processes: 1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff). 2. Employee remuneration and Benefits Administration 3. Performance Management. 4. Employee Relations.

The efficient designing of these processes apart from other things depends upon the degree of correspondence of each of these. This means that each process is subservient to other. You start from Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS (performance Management System) of an organization like Infosys would different from an organization like Wal-Mart. Lets study each process separately.

Human Resource Planning: Generally, we consider Human Resource Planning as the process of people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion and Layoff.

Recruitment: It aims at attracting applicants that match a certain Job criteria. Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms qualifications, expertise and potential for a certain job.

Hiring: Deciding upon the final candidate who gets the job. Training and Development: Those processes that work on an employee onboard for his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process involves

deciding upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in any job and therefore the importance of this process. Performing employees seek raises, better salaries and bonuses.

Performance Management: It is meant to help the organization train, motivate and reward
workers. It is also meant to ensure that the organizational goals are met with efficiency. The process not only includes the employees but can also be for a department, product and service or customer process; all towards enhancing or adding value to them. Nowadays there is an automated performance management system (PMS) that carries all the information to help managers evaluate the performance of the employees and assess them accordingly on their training and development needs.

Employee Relations: Employee retention is a nuisance with organizations especially in

industries that are hugely competitive in nature. Though there are myriad factors that motivate an individual to stick to or leave an organization, but certainly few are under our control. Employee relations include Labor Law and Relations, Working Environment, Employee heath and safety, Employee- Employee conflict management, Employee- Employee Conflict Management, Quality of Work Life, Workers Compensation, Employee Wellness and assistance

programs, Counseling for occupational stress. All these are critical to employee retention apart from the money which is only a hygiene factor. Human resource management involves managing people in an organization. The last few decades have seen some drastic changes in the strategies employed by various companies for this purpose. Earlier, it had limited functions which were mainly confined to paperwork related to hiring and payment of the staff in the company However, now, it is understood that the most valuable resources of any establishment are its employees, as they play a crucial role in accomplishment of the aims and objectives of a business. Therefore, the focus of HRM is to deal with the manpower and all the decisions related to it that can have an impact on the productivity

Importance of HRM
An organization cannot build a good team of working professionals without it. The key functions of the HRM team include recruiting people, training them, performance appraisals, motivating employees as well as workplace communication, workplace safety, and much more. The beneficial effects of these functions are discussed here:

Recruitment and Training This is one of the major responsibilities of the human resource team. The HR managers come up with plans and strategies for hiring the right kind of people. They design the criteria which is best suited for a specific job description. Their other tasks related to recruitment include formulating the obligations of an employee and the scope of tasks assigned to him or her. Based on these two factors, the contract of an employee with the company is prepared. When needed, they also provide training to the employees according to the requirements of the organization. Thus, the staff members get the opportunity to sharpen their existing skills or develop specialized skills which in turn, will help them to take up some new roles.

Performance Appraisals HRM encourages the people working in an organization, to work according to their potential and gives them suggestions that can help them to bring about improvement in it. The team communicates with the staff individually from time to time and provides all the necessary information regarding their performances and also defines their respective roles. This is beneficial as it enables them to form an outline of their anticipated goals in much clearer terms and thereby, helps them execute the goals with best possible efforts. Performance appraisals, when taken on a regular basis, motivate the employees.

Maintaining Work Atmosphere This is a vital aspect of HRM because the performance of an individual in an organization is largely driven by the work atmosphere or work culture that prevails at the workplace. A good

working condition is one of the benefits that the employees can expect from an efficient human resource team. A safe, clean and healthy environment can bring out the best in an employee. A congenial atmosphere gives the staff members job satisfaction as well.

Managing Disputes in an organization, there are several issues on which disputes may arise between the employees and the employers. You can say conflicts are almost inevitable. In such a scenario, it is the human resource department which acts as a consultant and mediator to sort out those issues in an effective manner. They first hear the grievances of the employees. Then they come up with suitable solutions to sort them out. In other words, they take timely action and prevent things from going out of hands.

Developing Public Relations The responsibility of establishing good public relations lies with the HRM to a great extent. They organize business meetings, seminars and various official gatherings on behalf of the company in order to build up relationships with other business sectors. Sometimes, the HR department plays an active role in preparing the business and marketing plans for the organization too.

Any organization, without a proper setup for HRM is bound to suffer from serious problems while managing its regular activities. For this reason, today, companies give a lot of stress for setting up of a strong and effective HRM.

INTRODUCTION TATA COMMUNICATION

TATA groups beginning can be tracked back to 1868. It was when Jamshedji Tata established a trading company in Bombay which dealt in cotton. This with the establishment of Empress

Mills in Nagpur and Taj Mahal hotels in Mumbai. The TATA group ventured into steel production hydroelectric power under the leadership of Sir Dorabji Tata, the eldest son of Jamshed ji Tata. is an Indian multinational company. It has its headquarters in Mumbai. Tata group has its businesses spread around 80 countries in six continents. The Tata group has its businesses in the following fields: Chemicals Consumer Products Energy Engineering Information Systems and communications Services Steel

The TATA companies operate independently. All have different and their own set of board of directors and shareholders. The major Tata companies are:

 TATA motors TATA Steel TATA Consultancy services TATA power TATA Global Beverages TATA Chemicals TATA Teleservices TATA Communications

WHY TATA? I chose TATA as my topic because TATA is one of the biggest companies in the world today with an origin in India. TATA is a company which is in almost all the sectors of the business world. It is a very big name in itself. Doing a research on the practices of such a company was an interesting work and a good learning process. It helped us understand the HR practices in a better way. HR PRACTICES TATA HR practices are a strong HR model which focuses on the following parameters: 1. Alignment 2. Assignment 3. Engagement 4. Empowerment Pride of workforce There are many HR practices which are being followed at TATA as an essential an important part of employee development and employee satisfaction as at TATA they believe that employee satisfaction leads to customer satisfaction. TATA is called the EMPLOYER OF CHOICE because of its range of initiatives for employee encouragement, employee motivation and employee engagement. TATA also has an annual engagement survey-DARPAN which promotes customer-

centric and performance driven culture at the organization. The culture of the organization is defined under the acronym

CRISP which saysC-Customer focus R- Responsibility for result I- Initiative with speed S- Self-confidence with consciousness P- Passion for achievement Some of the practices which they follow are listed below:

Performance management scheme:

The performance managementsystem at Tata ensures a top down cascade of the goals of business. There are basically five key indicators that determine and help in judging the performanceof the employees. The employee is aligned to any one or multiples of five keyindicators which are- revenue, profir maximization/cost optimization, cashflows, customer satisfaction, employee engagement. These indicators align theemployees towards the vision, mission and the business plans of theorganization.

A reward and recognition policy:

A reward and recognition policy is implemented to motivate the employees in the organization. The employees arerewarded for their good performance and contribution to the organization.

Career progression policy:

This scheme basically revolves around thecareer growth of the employees in connection with the performance, merit and potential of the employee. It involves many schemes such as job rotations, internal postings

Employee development:
TATA encourages the employees to develop their personalities and skills and also provides many opportunities for the same.There is a portal called GYAN JYOTI which helps the employees to enhancetheir skills through e-learning. Employees are made to list their areas of expertise and interests and there are workshops conducted to enhance their skills.

Employee engagement:
There are many activities that are conducted toengage the employees some of which are annual celebration, employee townhall, the success matrix, sports tournament, world of work, recharge zone,online library service. Community development centers have also beendeveloped to establish and encourage family values in the employees.

A) TWO WAY COMMUNICATION

Skip Level Meeting The Skip Level meetings serve as a tool for fostering two way communications. These are being conducted with an objective of a free and frank interaction with young and enthusiastic employees with a view to sensitize them with various issues, the Company is facing and to seek their inputs on improvements in the processes, suggest innovative / different way of doing things aligned to achieving Companys objectives.

The skip-level meeting is also a process in which Management will encourage and facilitate employees free expression of their thoughts in respect of their goals, standards, the work environment and improvements in the processes for Organizational excellence. Skip-level meetings are aimed at capturing free and first-hand suggestions that are useful in refining the operations and in improving work environment. These meetings are also focused to gather feedback from employees on their aspirations, needs and desires on their jobs, obstacles, if any, that prevent them from achieving their targets more effectively and also about the appreciation and performance feedback they receive from their Managers and for seeking your suggestions for a positive change in the organization. Interactions in the meetings and the outcomes thereof will be evaluated for incorporation in Company's Operations, as may be feasible.

Employee engagement survey Being People Focused Organization, the most important
priority is to motivate and engage people in our organization. Employee engagement surveys are conducted every year the inputs thereof for improvement will become stepping stones towards making TPL a Great Place to Work and instill pride in our people.

Open House In order to encourage employees to share their views and suggestions at a
bigger forum, an Open House meeting is conducted every year. All the inputs are captured and addressed.

Dialogue with CEO Each and every employee can meet Executive Director & Chief
Operating Officer of TPL and express their concerns/suggestions directly. Such dialogues are conducted twice a week.

Suggestion Scheme All employees are encouraged to give their suggestion. A cross
functional panel evaluates all the suggestions received and the best suggestions are implemented and employees are rewarded.

Tea Meeting All new inductees are invited to meet CEO and department heads as a part of
scheduled induction program. New joiners are expected to express their expectations from TPL. Their hobbies and interest apart form work is also captured in this meeting.

B) ENGAGEMENT DRIVERS
Mentoring and Coaching Mentoring features as one of the best-practices of globally competitive companies. Mentoring has been advocated as the most important method of shaping behavior and improving performance. A mentor provides professional support to the mentee thus enhancing his/her performance in alignment with the organizations goal. An important tool for career development of the mentee, mentoring also helps in higher levels of motivation, improved retention levels and better succession planning.

Performance Linked Reward : High Performance is encouraged and differentiated

through Performance Linked Annual Increases and Variable Pay. Further, to differentiate and reward high performance, the percentage of Variable Pay in total compensation is increasing Yo-Y. Project teams completing projects ahead of schedule are recognized and additionally rewarded, monetarily. Similarly, RCMs / Sites In-charge are given responsibility allowance for completing the projects on four measured parameters viz., Time, Cost, Quality and Safety. Employees demonstrating exemplary performance either individually or collectively are recognized and rewarded with 'Star Of the Month and 'Sabahs' awards

Buddy Concept Buddy concept is a worldwide-accepted practice wherein every new joinee
is assigned a buddy (peer) for quick orientation. A buddy shall help the new joinees to settle down in the early days of his/her job, ensure that the new joinees gets assistance in finding a new accommodation/ workspace etc in coordination with HR, answer queries on organization culture, existing policies, employee welfare schemes etc. In addition, every new joinee will have a New at TPL badge to let us know that he/she might need help.

Leadership Development - Identification of high potentials through PMS & Assessment &
Development Center, Fast Track Programs, Management Development Programs, action plans on 360 degree feedback of SMT, Cross functional training programs

Performance Coaching - Performance coaching for delegation & empowerment,

knowledge sharing across functions, transfer of knowledge from retiring employees/to successors of key/critical positions

COMPENSATION
The compensation package comprises of monetary and non-monetary benefits that includes salary, special allowances, house rent allowance, travel allowance, mobile allowance, employee stock options, club memberships, accommodations, retirement benefits and other benefits. It may include a number of other benefits including insurance extended leaves and retirement programs. But why do companies need to give monetary benefits to employees?What will they get in return? Will it have a positive effect on the organizations performance? Compensation in monetary and non- monetary form is considered to beimportant by the organization and employees for various reasons such as: Increasing employee morale and motivation Improving performance of the employees Increasing productivity Enhancing employee efficiency Reducing employee turnover Commitment Retaining best employee Loyalty gained Helps dealing with union issues

Organizational citizenship behavior Compensation can be divided into 2 components:

FIXED (This component takes care of Basic pay, per hr allowance (hra) and dearness allowance (DA). FLEXIBLE (flexible/ variable compensation we have the following: 1. City compensatory allowance 2. Mobile reimbursement/month 3. Educational allowance Plan based on an independent actuarial valuation. With effect from April, 2003, this plan was amended and benefits earned by covered employees have been protected as at march 31, 2003. Employees covered by this plan are prospectively entitled to benefits computed on a basis that ensures that the annual cost of providing the pension benefits would not exceed 15%of salary. The company maintains a separate irrevocable trust for employees covered andentitled to benefits. The company contributes up to 15% of the eligibleemployees salary to the trust every year. the company recognizes suchcontribution as an expense when incurred. The company has no further obligation beyond this contribution.

BHAVISHYA KALYAN YOJANA (BKY)

BKY is an unfunded defined benefit plan. The benefits of the plan accrue to aneligible employee at the time of death or permanent disablement, while inservice, either as a result of an injury or as certified by the companys medical board. The monthly payment to dependents of the decreased/ disabled employee under the plan equals 50% of the salary drawn at the time of death or accident or a specified amount, whichever is higher. The company accounts for the liability for BKY benefits payable in future based on an independent actuarial valuation. Post-retirement medical scheme

Under this scheme, employees get medical benefits subject to certain limits of amount, periods after retirement and types of benefits, depending on their gradeand location at the time of retirement. Employees separated from the companyas part early separation scheme, on medical grounds or due to permanent disablement are also covered under the scheme. The liability for post-retirement medical scheme is based on an independent actuarial valuation.

PROVIDENT FUND
The eligible employees of the company are entitled to receive benefits under the provident fund, a defined contribution plan, in which both employees and thecompany make monthly contributions at a specified percentage of the coveredemployees salary. The contributions asspecified under the law are paid to the provident fund and pension fund set upas irrevocable trust by the company or to respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension scheme. The company is generally liable for annual contributions and any shortfall in theassets based on the government specified minimum rates of return or pensionand recognizes such contributions and shortfall, if any, as an expense in the year incurred.

COMPENSATED ABSENCES
The company provides for the encashment of leave or leave with pay subject tocertain rules. The employees are entitled to accumulate leave subject to certainlimits, for future encashment. The liability is provided based on the number of days of unutilized leave at each balance sheet date on the basis of anindependent actuarial valuation.Apart from theseAllowance like transport allowance, education allowance, sanitation, leavetravel allowance etc.Annual performance linked paymentFree medical facility for family.

REWARDS AND RECOGNITION

The Rewards and Recognition (R&R) policy at TATA basically focuses oncreating such a framework that provides recognition and rewards to thecontributions made by the employees. TATA believes that employees are thedriving force of an organization and it is very important to

attract , motivate andretain employees for reaping the benefits of increased and high productivity.The major rewards and recognition that employees get at TATA are 1. Spotlight (on-the-spot recognition) 2. Star of the month 3. Super stars for achievers 4. Customer first reward and valuable award 5. Long service award (after 5 and 10 years) There is also a GEMS reward and recognition program in TATA. It is designed to encourage the employees so that they make a performance differenceindividually as well as in a team. Exemplary performance over and above thecall of duty is recognized and rewarded in the company annual function.

These are the various compensation which is used by the company: GRATUITY
The company has an obligation inclining towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The company makes annual contributions to gratuity fund established as trust. The company accounts for the liability for gratuity benefits payable in future based on an independent actuarial valuation.

SUPERANNUATION
The company has two superannuation plans, a defined plan and a defined contribution plan. An eligible employee on april 1, 1996 could elect to be amember of either plan. Employees who are

members of the defined benefit superannuation plan are entitled to benefits depending on the years of serviceand salary drawn. The monthly pension benefits after retirement range from0.75% to 2% of the annual basic salary for each year of service. The company accounts for the liability for superannuation benefits payable in future under the plan based on an independent actuarial valuation. With effect from april, 2003,this plan was amended and benefits earned by covered employees have been protected as at march 31, 2003. Employees covered by this plan are prospectively entitled to benefits computed on a basis that ensures that theannual cost of providing the pension benefits would not exceed 15%of salary.The company maintains a separate irrevocable trust for employees covered andentitled to benefits. The company contributes up to 15% of the eligibleemployees salary to the trust every year. the company recognizes such contribution as an expense when incurred. The company has no further obligation beyond this contribution.

ANALYSIS
Tata communication has evolved from the traditional fixes pay and more and more variable pay is introduced by the company. Nowadays we find that the variable component is quite large as compared to the fixed one. There are huge advantages due to variable pay compensation which are as follows. a) Employee accountability b) Motivation to perform more c) Performance leading to rewards and recognition

High self-motivation to perform However, critics have argued that such a pay structure would always put hugeloads of pressure on the employees and hence an employee is looked merely asa machine with no emotion. Some of the disadvantages may be as follows Increased stress levels due to heavy expectations Performance anxiety Employee worn-out

Conclusion
At last we can say that Tata communications doing well in compensating the employees There should be some innovative ideas taken in to consideration like a tour holiday fully sponsored such practice would not only give the employee a muchneeded break and also motivate everyone to work. It should be noted that bygiving only monetary benefits would not suffice the needs of the employees asnot everyone is motivated by the money. Thus, the company should look after the overall growth of the individual, match his career aims with the goals of the company.

About taj
For more than 100 years, we have acquainted guests with the living heritage of India - and a legendary experience inhospitality. It began on December 16, 1903, when J amsetji NusserwanjiTata opened Tajs first hotel, the Taj Mahal Palace & Tower, Mumbai. This grand hotel epitomized a philosophy that still holds true today: provide impeccable service and unparalleled facilities so every stay is a memorable one.A part of the Tata Group of companies www.tata.com, Indiaspremier business house, Taj Hotels Resorts and Palacescomprises 56 hotels in 39 locations across India with anadditional 17 international hotels in the Maldives, Mauritius,Malaysia, Seychelles, U K , USA , B hutan, Sri L anka, A frica, andthe Middle E ast. Over the years, Taj has won internationalacclaim for its quality hotels and its excellence in dining,business facilities, interiors, and world-class, personalizedservice.In India, Taj is recognized as the premier hospitality provider,spanning the length and breadth of the country, and gracingimportant industrial towns and cities, beautiful beaches,historical and pilgrim centers, and wildlife destinations.

. Why Taj Employees have to face clients directly on a 24 x 7 basis We wanted to get an insight as to: How company helps them to deal with stress How company helps an employee grow and adapt to diverse cultures they have to encounter on a day-to-day basis Customer satisfaction is the key success in Hospitality which lies majorly in employees hand. So employee is the key to success in a Hospitality industry.

Employee satisfaction is the foremost goal. Extra-ordinary heroic came stories came forward in Dec-2004 Tsunami and Nov-2008 Taj attack.

HR PRACTICES IN HOTEL TAJ

EMPLOYEES OF TAJ :-

These needs are the basic needs of food, clothing, shelter etc, which have to be fulfilled b y an individual. An individual will be able to fulfill these needs only if he has adequate money with him. Taj helps to satisfy these needs in the following ways:- Taj provides employment to more than 1,500 people (including people employed on permanent and gives them a good pay depending upon their post.

Most of the employees working in TAJ come from different parts of the country and find it difficult and expensive to get accommodation, TAJ provides them with housing facilities by just deducting a small amount from their salary. The houses provided are decently sized and well maintained and also differ from post to post. Taj also provides uniform (blazers) to all its employees. They are given a new set of uniform every six months. Since the employees have a shift of 8 hours a day, Taj also provides them with meals depending upon which shifts they work on. The quality of the food is equivalent to the food provided to the guests. In case of job security an employees job is not secured for the first year. However if the management is satisfied with his job, an employees job might be secured even before he completes 12 months. In case of a trainee there is no job security provided. But if the management is satisfied with his job they might offer him a job in their hotel. In case of physical security they provide them with benefits like

medical insurance, life insurance at the discretion of the employee. This is because to avail these facilities a minimum pay is deducted from their salary.

PROMOTION:In Taj , promotion is strictly given on the basis of merit. Here the things like experience and influence doesnt come into account. If one is capable then he will be promoted.

RECOGNITION:Employees are considered important in Taj, and are recognized for their job. In case, if an employees performance is exceptionally good in the past year he is awarded a certificate along with some cash incentives. Also if an employee has given long years of service he is given momentum from Taj.

JOB ROTATION: In the hotel industry, job rotation is followed on a large scale. This is done so that an employee cans excel in each and every department. An employees job is not rotated unless he has proven himself in a particular department. Therefore when an employee is rotated from one department to another there is an ego boost as he feels that the management has appreciated his work and feel that he is capable of doing something more.

JOB ENRICHMENT& ENLARGEMENT

In the hotel industry, job enrichment and enlargement is not followed as they feel that if an employee is capable for bearing additional responsibility then he will promoted

The Taj's People Philosophy and Star System

"The employee at Taj is viewed as an asset and is the real profit center. He or she is the very reason for our survival. The creation of the Taj People Philosophy displays our commitment to and belief in our people. We want an organization with a very clear philosophy, where we can treasure people and build from within."

Introduction
In March 2001, the Taj Group1 launched an employee loyalty program called the 'Special Thanks and Recognition System' (STARS). STARS were an initiative aimed at motivating employees to transcend their usual duties and responsibilities and have fun during work. This program also acknowledged and rewarded hard working employees who had done excellent work. The Taj Group had always believed that their employees were their greatest assets and the very reason for the survival of their business. In 2000, to show its commitment to and belief in employees, the Taj Group developed the 'Taj People Philosophy' (TPP), which covered all the people practices of the group. TPP considered every aspect of employees' organizational career planning, right from their induction into the company till their superannuation. TPP

offered many benefits to the Taj Group. It helped the company boost the morale of its employees and improve service standards, which in turn resulted in repeat customers for many hotels in the group. The STAR system also led to global recognition of the Taj Group of hotels in 2002 when the group bagged the 'Hermes Award'2 for 'Best Innovation in Human Resources' in the global hospitality industry.

Hiring and Training Policy

18 months - 6 months more than the industry standard The employees can be trained to be better chefs or waiters, but they cannot be taught to be good individuals. Build Leaders - Each employee is given an authority to take the decisions pertaining to his work and this empowers them and helps in building a leader in all Trained not just on the area of expertise but all the related functions

360-degree Feedback
Employees, including the managers and departmental heads are also evaluated by their immediate subordinates. Counseled at a personal level and apprised of where they fell short of the expectations and how to go about it Guides them to prepare a roadmap for the future endeavors and hone their skills

ESTS (Employee Satisfaction Tracking System)

Conducting surveys to elicit response from the employees and the records collected are used to rate the overall satisfaction level of the employees Targeted to achieve 100% satisfaction in the course of its operation

Regularly looks into the employees concerns and strives to address them Forums for the employees to voice their recommendation or compliment their colleagues Mandatory for the review committee to reply to the employees suggestions within 2 days or he shall be allotted default points

STARS (Special Thanks and Recognition System)

Customers of an organization can be satisfied by it only when its employees are satisfied Recognizing and rewarding employees who showcased excellent performance at their work Promoted successively to various levels Employees were not just assessed on their performance but also on parameters like honesty, trustworthiness, concern for the environment, team spirit, cooperation etc. Appreciations from the customers also fetched points

Outcomes of these Policies

ERR (Employee retention rate) is the highest amongst all its competitors. Drives employees beyond their duties which was totally unexpected of them as was in the case of 26/12 Tsunami and 26/11 attacks. In 2002, Taj Group was conferred HERMES Award for its innovative HR practices. With the implementation of STARS, there was tremendous improvement in the service standards and also the customer satisfaction level.

What they do???

1. Seek fresh recruits rather than lateral hires. 2. Hire from small towns and semi urban areas, not metros. 3. Recruit from high schools and second-tier business schools rather than colleges and premier B-schools. 4. Induct managers who seek a single-company career and will be hands-on. 5. Focus more on hiring people with integrity and devotion to duty than on acquiring those with talent and skills. 6. Train workers for 18 months, not just 12. 7. Ensure that employees can deal with guests without consulting a supervisor. 8. Teach people to improvise rather than do things by the book. 9. Insist that employees place guests interests over the companys. 10. Have incumbent managers, not consultants, conduct training. 11. Use timely recognition, not money, as reward. 12. Ensure that recognition comes from immediate supervisors, not top management.

CONCLUSION
as per my opinion and the studies of this project shows that in every organization human resource practices are necessary for the smooth functioning of organization.

The one who innovates the new techniques of human resource practices can run long in a market can stable in market. The Tata communication (communication industry) and taj hotel (hotel industry) adopted a various techniques and grow in their business earn not only the profit and goals but the image, reputation and goodwill for the organization.

The organization has to focus on the human resources doing work for an organization and the hr of company should be satisfied with the policies frame for them by the organization.

Human resource are the asset for the any company so that while framing the policies for them the organization should keep in mind all the factors related to the work and them.

BIBLIOGRAPHY
WEBSITES www.google.com www.tatacommunication.com www.mbaskool.taj.com www.humenresource.com

BOOKS Human resource management TYBMS IV SUNNY FERNANDDIS Principles of management (first year bms) L.N. chopde, d.h. choudhari