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CONTEMPORARY HR PRACTICES IN AGRO INDUSTRIES
SUBMITTED TO: DR. DEBASISH DUTTA FACULTY SIIB
SUBMITTED BY: Divya Boddu 09020242007 MBA-AB (09/11) SIIB
INTRODUCTION- WHY HRM IN AGRIULTURAL INDUSTRY???? HR PRACTICES IN ITC INDIA LTD. HR PRACTICES IN DABUR HR PRACTICES IN TATA TEA HR PRACTICES RALLIS INDIA CONCLUSION REFERENCES
INTRODUCTION- WHY HRM IN AGRIULTURAL INDUSTRY???? Although agriculture contributes only a fifth of India’s GDP, its importance in the country’s economic, social, and political fabric goes well beyond this indicator. Agriculture provides livelihoods to 60 percent of the rural people, the majority of whom are poor, and remains vital for the country’s food security. After the Green Revolution of the 1970s which enabled India to achieve self-sufficiency in foodgrains, agricultural growth has slowed - from 3.5 percent in mid 1980s to 1990s to less than 2 percent in mid 1990s to 2000s. Slow agricultural growth and the consequent widening of the gap between rural and urban incomes has become a major cause for concern. Why for this is happening? There are various reasons behind this like population growth rate is higher than that of agricultural productions growth rate. Agribusiness has a great role to play in increasing production, productivity, processing of agricultural products, minimizing losses far reach and many more. In today’s globalize world, every country is facing challenges of cut throat competition, privatization, liberalization, economy development and its allied problems. India is also facing same problems along with development of rural India. To oversee these problems, all countries look forward to the development of industry and business. By this view, business is considered as a pillar for development of the country. In India more than fifty percent of population live in rural area and are involved in agriculture practices. Thus there is a great need to focus on rural India rather merely on business and industry. Agricultural trends are changing everyday with the development of new techniques. To make the best of emerging technologies, it is vital that agriculturalists receive continuous education and training. This training is provided on topics such as pesticide management, use of better seeds, irrigation and use of fertilizers among many others. Equally important is the process of agricultural research and development to create cheaper and better farm practices. Therefore agricultural organizations are trying to develop human resources and utilize their whole potential for the organization development and in turn contribute to the nation’s development.
ITC's human resource management systems and processes aim to create a responsive, customer-centric and market-focused culture that enhances organisational capability and vitality, so that each business is internationally competitive and equipped to exploit emerging market opportunities. RECRUITMENT: ITC’S Recruitment objectives: • To effectively manage the manpower recruitment in coherence with long term and short term manpower planning of the organization through a standard recruitment and selection policy. • To proactively and systematically identify the recruitment needs in time. To ensure that all the recruitment are within the manpower budget and as per the laid down policy. • The recruited people with required level of skilled and aptitude for learning and growth.
Scope of recruitment: This policy shall apply to all PERMANENT management position in the company including the workmen. Identification of vacancies: 1. Total permanent manpower strength/budget for organization has been sanctioned by the board of directors. 2. All the recruitment has necessarily to be made within the approved budget/strength only. 3. Vacancies against the sanctioned budget may arise due to: • • • Retirement Turnover Natural Separation
4. whenever a vacancy arise, the concerned department has to fill up the prescribed manpower requisition form clearly indication the job description and specification, time frame and send it to HR department. Recruitment Sources: The sources of recruitment may be broadly divided into two categories: internal sources and external sources. On receipt of the Manpower Requisition (MPR) form HR department will initiate action of sourcing the candidates as under:
1. Internal sources: As a matter of policy, the organization will encourage to fill
up the vacancies from within the existing people if they are fulfilling the criteria and found suitable. • • In order to invite application from internal sources, notice/circular for all such vacancies will be put up on the notice board. In case any permanent employee dies in harness due to accident or any other reason, one depend son of deceased employee may be given preference in employment with the company subject to his fulfilling the eligibility criteria based on qualification and experience as well as suitable vacancy in the company at that time. • The conditions fulfilling the requirement may apply against internal notification to HR department through their department.
2. Other sources: Other sources can be tapped for recruitment only when suitable
candidates are mostly available internally. Other sources may include the following: • • • • people. 1. Internal Method internal data bank local employment exchange advertisement through newspaper Placement agencies.
Methods Of Recruitment: The following are the most commonly used method of recruiting
2. Direct Method 3. Indirect Method 1.INTERNAL METHOD: PROMOTION AND TRANSFERS: ITC Prefer to fill vacancies through promotion or transfers from within wherever possible. Promotion involves movement of an employee from a lower level position to higher level position accompanied by changes in duties, responsibilities, status and value and value. It may lead to changes in duties and responsibility, working conditions, etc., but not necessarily salary. Internal promotions and transfers certainly allow people greater scope to experiment with their career, kindling ambitions and motivating them to take a shot at something they might otherwise never have considered. The system, of course, works best for young executives who are willing to take risks. JOB POSITION Job position is another way of hiring people from within. In this method, the organization publicizes job openings on bulletin boards, electronic media and similar outlets. Hindustan lever introduced its version open job position in early 2002 and over 40 positions have since been filed through the process. HLL even allows its employee to under take career shifts, for example from technical position system. EMPLOYEE REFERRALS Employee referral means using personal contacts to locate job opportunities. It is a recommendation from a current employee regarding a job applicant. The logic behind employee referral is that “ it takes one to know one” employee working in the organization in this case, are encouraged to recommend the name of their friends working in other organization for a possible vacancy in the near future. In fact, this has become a popular way of recruiting people in the highly competitive information technology industry now a day. Companies offer rich rewards also to employees whose recommendation are accepted after the routine screening and examining process is over- and job offers extended to the suggested candidates. 2.Direct Method Campus Recruitment
It is a method of recruiting by visiting and participating in college campuses and their placement centers. Here the recruiter’s visits reputed educational institutions such as IITs, IIMs colleges and universities with a view to pickup job aspirants having a requisite technical of professional skills. Job seekers are provided information about the jobs and the recruiter’s inturen get a snap shot of job seekers through constant interchange of information with respective institutions. A preliminary screening is done within the campus and the short listed students are then subjected to the reminder of the selection process. In view of the growing demand for young managers, most reputed organizations visit regularly and even sponsor certain popular activities with a view to earn goodwill in the job market. Advantage of this method include: the placement centre helps locate applicants and provides resumes to organization; applicants can be prescreened; applicants will not have to be lured away from a current job and lower salary expectation. 3.Indirect Method Advertisement This includes advertisement in news papers; trade, professionals and technical journals; radio and TV etc. In recent time this medium became just as colorful lively and imaginative as consumer advertising. The ad generally gives a brief outline of the job responsibilities, compensation package, prospects in the organization etc. This method is appropriate when (a) the organization intends to reach a large target group and (b) the organization wants a fairly good no. of talented people who are geographically spread out. Head Hunters There is an influx of executive search agencies also known as head hunters who specialize in selection of professionals for very senior or top posts, where applicants are in short supply and employers have no time to go round in search of the best talents. Such vacancies are fewer and far between and organizations prefer hiring a head hunter who maintains confidentiality of the employer and are specialize in recruiting the best talent strictly as per the job specification. But, these specialists bodies charges hefty professional fees. However, the high cost is outweighed by the benefit of recruiting the best talent without going through the cumbersome and time consuming process of internal recruitment system.
SELECTION PROCEDURE Screening of Application : • All application received from various sources will be screened by the concerned department and HR based on the job description and specification and the applicant profile. • •
Shorting of prima facile suitable candidates who should be called for test/interview shall be prepared. The ratio between the number of vacancy and the number of candidate to be called for test/interview should normally be 1:5.
Depending on the requirement of the job if required, management may conduct written/aptitude/psychometric/physical or any other test as deem fit.
• • 3. INTERVIEW: • • • • •
Short listed application will be send formal letter for appearing test at least 15 days in advance. Qualifying criteria for the test will be determined by the management depending on the nature and requirement of the job.
All the candidates short listed for interview will be informed through a formal call letter for attending interview at least 15 days in advance. The candidate will be interview by the interview panel.
4. FINAL SELECTIOM AND APPOINTMENT: Recommendation of the interview panel will be put up before the MD by the HR Department for his approval. Candidates for the officer and above after interviewed by the panel will be finally interview by the MD. Selection of candidates will be strictly on the basis of merit. Other things being equal local candidate from state of Bihar will be given preference.
Appointment letter will be issued to the finally selected candidates after duly approved by MD. However, in case appointment letter can initially be issued to the candidates and the detailed formal appointment letter can be issued at the time of joining.
Before letter of appointment is issued to candidates HR department will ensure the following: 1. Check and verify all the personal details furnished by the candidates. 2. Verify the certificates and other credentials. 3. Make necessary reference/antecedents verifications whenever required.
5. Joining Formalities: (a) Employees joining shall first report in the HR department will facilitate in completing the joining formalities such as filling of joining report and other necessary forms. (b) HR department will ensure that the candidates will be allowed to join subject to their being found medically.
ITC Payroll costs over the years
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The culture at Dabur gives full autonomy to its employees. Various training and development programs like Young Manager Development Program, Prayas, Leading and Facilitating Performance, Campus to Corpora and a balanced scorecard approach for performance evaluation. These policies help the employees in realizing their potential. In the year 2001, the company started putting HR systems in place to ensure that organisational and individual goals were aligned. It began institutionalising empowerment in the workplace A whistleblower policy was put in place. It sought to put a cap on business practices that were out of character with Dabur‘s values. Employees can report such matters to the heads of HR and investor relations, and the CFO. The policy is completely confidential and has been running for three years now. To prohibit initiation of adverse action against an employee or business associate or failing to take an otherwise appropriate action, as a result of the employee‘s good faith disclosure of alleged wrongful conduct to the “Standing Committee on Whistle Blowing” herein after referred to as the Standing Committee. Recently, Dabur has adopted an innovative HR program of offering ESOPs to new engineering and management trainees at the time of joining. This system is quite unique in itself. Also in 2005, Dabur gave Bonus to its employees after 12 years. This boosted the employee morale further. Recruitment is an integral and ongoing process in any organization. This holds true for Dabur also. The company have a two-pronged approach in recruiting dynamic professionals - lateral recruitments and the Management Trainee / Engineer Trainee recruitments at entry level. The Management Trainee / Engineer Trainee Programme have been a focus area to induct young and vibrant professionals at the entry level. With every passing year, upgradations are made to it to make the learning experience more enriching and rigorous with a greater focus on functional and conceptual inputs and an objective learning evaluation system. An incentivised employee referral programme was kicked off, whereby existing employees could refer candidates they thought to be suitable. Dabur was listed as a ―Great Place to Work‖, in a survey conducted by Grow Talent & Company and Great Place to Work Institute, USA. Dabur was listed as the 10th ―Great Place to Work‖. The results were published in Business World dated February 2006.
The company believes that good HR policies, by themselves, don’t create a great workplace. They need to be accompanied by ambition and a sense of daring.
Tata Tea is a vibrant Company with over 34,000 employees spread across the country. It is a rare mixture of cultures, that of over 150 years old plantations and the dynamic and ever changing world of fast moving consumer goods industry. Tata Tea is today in the pre-eminent position of the world's largest integrated tea Company powered by its most important resource - "people". Tata Tea's "People Philosophy " is driven by the Tata Group Human Resources Mandate which says: Attract good people. Retain the better people. Advance the best people.
The opportunity to work with one of the world's best Plantation Companies and one of India's best Marketing Companies. Career Growth based on Performance. Attractive, Market based Pay that is linked to Performance. Mobility across various functions and various Subsidiary and Sister Companies in India and abroad. Structured Career Leadership intervention Programmes for high performers to manage their careers. Need based and value added training programmes to prepare employees for future growth. Tata Tea recruits personnel mainly in the areas of Plantation Management. Sales & Distribution. Brand Marketing. Finance. Information Technology.
Tata Tea also takes in candidates from the Tata Administrative Service, the prestigious leadership development programme of the Tata Group which attracts some of the finest young talent available in the country. The welfare and the well being of Tata Tea's large workforce - about 34,000 employees and their families drawn largely from the weaker sections of the society is of paramount importance to the company. The company has put in dedicated effort and large expenditure, entirely voluntary, that has gone into upgrading the quality of life of the workforce. Significant contribution to the country's social, cultural and environmental development. • C
Rallis India is one of India’s leading agrochemicals companies, with a century old tradition of servicing rural markets and the most comprehensive portfolio of pesticides for Indian farmers. The Company is known for its deep understanding of Indian agriculture, sustained relationships with farmers, quality agrochemicals, branding and marketing expertise and its strong product portfolio. Rallis is also recognized for its manufacturing capabilities and ability to develop new processes and formulations supported by the capability to register new products. It has marketing alliances with several multinational agrochemical companies, including FMC, Nihon Nohyaku, DuPont, Syngenta, Makhteshim Agan and Bayer Cropscience. The Rallis HR philosophy is based on TATA Group's HR Philosophy to - Attract the good, Retain the better and Advance the best. It believes in PRAGATI - People Related Actions for Growth and Achievement Through Transformation and Involvement and to create a culture of Learning, Competitiveness, Ownership and Excellence. Rallis India Limited chooses the leading On-demand Performance Management System EmpXtrack to manage performance of its employees, a web-based software. EmpXtrack Performance Management System will act as a catalyst in HR's initiatives to advance performance driven culture in the company. EmpXtrack will enable employee's to align their goals to business objectives of the company. Speaking on the occasion, Tushar Bhatia, President of Saigun Technologies said, “We are proud to be the part of Rallis India's endeavors to take its Human Resources Management practices to new heights. We are confident that EmpXtrack Performance Management System with its user-friendly interface and powerful features will help Rallis employees in taking control of their goals and performance. CONCLUSION: If we consider whole country as a business house then all people of the country will act as important human resource of the country. If proper utilization of these human resources for the development of the country is took place, then these human resources will act as most important asset of the country. HRD practices are one of the important tools in development of Human Resources of the country. Therefore there is a great need to undertake HRD practices for the optimum utilization of country people which will result in whole development of country. If we will concentrate on development of rural area / Agriculture by applying suitable HRD parameters, it will anticipate in-depth research of the current rural scenario in India with the challenges poses and the approach of HRD practices towards the rural/Agriculture environment.
www.dabur.com www.itcportal.com www.quickmba.com www.rallis.co.in