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Submitted by: Ashish Ranjan MBA (M&E)
46, Institutional Area, Sector 32,
Table of Contents 1. 2. 3. 4.
......7 Acknowledgement.................................................................... .....................3 Executive
Summary. .................................................................................... 4 Business Of The
5. 6. 7. 8. 9. 10.
......................7 Induction And
....................10 Performance Management
System............................................................11 Training and
Development........................................................................12 Compensation and
11. 12. 13.
....................15 Newly Implemented HR
14. 15. 16. 17.
.....................19 Comparison with
competitor ..................................................................20 Conclusion...............................................................................
My Sincere thanks goes to esteemed organization in the Logistics business, Panalpina World Transport (Holding) Ltd. and its branch Panalpina World Transport India (Pvt.) Ltd. Gurgaon, India for providing me an opportunity to learn some experiences. Firstly, I thank to Ms. Priya Varandani, HR head and Ms. Sweta Sarangi Senior HR Executive of Panalpina who helped me in information collection and approaching to the various sources. My work became comparatively easier due to my induction with some employees of the company who were unknown to me earlier. 3
I am extremely thankful to Faculty Prof. Pallavi Chopra, who made me to think and contact this Logistics Company. My Heartiest regards goes to Dr. Ashutosh Bhupatkar, Director and professor of Pearl School of Business, who guided me in understanding the logic behind practices. Last but not the least, I am thankful to all those who knowingly and unknowingly helped me in data collection and gave me their unconditional support for this study, their positive attitude towards me and willingness to provide me the inputs. Ashish
The aim of this HR Project is to know the HR process and its functions. Identifying the ways of enhancements of operations of logistics in a new region where its business are emerging. The HR Project Summary and conclusion tells the cumulative findings of Project, through identification of facts, manuals, surveys and interviews. The Report proposes various processes of HR process and issues and some newly implemented approaches to make effective and efficient work functions. Methodology: Through interviews, based on certain questionnaire where employees working in the Panalpina were target audience and 4
some secondary sources. In report a comparative study of HR process in other organization and its advantages has been tried to cover. Companies are Gati, Federal Express. I have also tried to find out some issues while working and some recommendations for that as well. Over two months of analysis I found out this department is working with full efficiency with innovative employee engagement ideas and some additional practices. Its functions are in line with the operations of corporate and are helping other concerns departments in grabbing more business in this country. But it has a lot more business to do as areas of opportunity. The developed department has a culture of making work more participative and supportive. Key words: PMS, KPIs, KRAs, Standard job title, Job description, Employment Activities etc.
Business of the Company:
The company made its origin in the Rhine and maritime shipping industry of the 19th century. In the 1970s the company expanded its business by establishing Air Sea Broker (ASB) as an air charter company and ship's agency manager in US. In the 1980s this expansion continued with the creation of a global air network. During expansion it made several acquisitions in the late 1990s. One of them was the Swiss, Austrian and Italian operations of forwarder, Jackie Maeder Group. Company went public by listing itself into the Swiss stock exchange in 2005. The company made its reputation mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalize supply chain, with Supply Chain 5
Logistics experts. Company works on just in time and quality services. Company works towards a goal of managing the fruition of project life cycles supply chains and resultant efficiencies. This company works with inbound and outbound logistics covering the flow and storage of materials from point of origin to point of consumption in some parts. The main functions are inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Now, this group
is one of the world's leading suppliers of forwarding and logistics services, specializing in intercontinental air freight, ocean freight shipments and associated supply chain management solutions. This company has built in-depth industry know-how and state-ofthe-art IT systems, which provides globally integrated door-todoor forwarding solutions tailored to its customers' individual needs. The Group operates a close-knit network with some 500 branches in 80 countries. In a further 60 countries, it co-operates closely with partner companies. Panalpina employs some 13,500 people world-wide. With net forwarding revenue of 8,878million CHF, US $ 5.71 billion in the year 2008, it is among the top four freight forwarding companies in the world. In positive business environment, Panalpina has continued its excellent performance during the following years. Panalpina world transport (Holding) is owned by the Ernst Göhner Foundation with 43%, and is led by Chairman Gerhard Fischer, Chief Executive Officer Monika Ribar. Panalpina India started its operations in 1986, offering solutions which include air and ocean freight forwarding, warehousing, logistic solutions, order and inventory management, shipment preparation, cross-dock operations, critical parts distribution, service parts logistics, international trade management, customs brokerage and domestic transportation services. Panalpina India has a presence in the country with its 10 offices, including Gurgaon as corporate headquarter. Being lesser employee strength till 1990s, the domestic HR practices were handled by Swiss head quarter. As a corporate, it gets reporting from its different regional branches and repots to Head HR department of corporate to Chief Human Resources Officer Alastair Robertson. The corporate is responsible for these HR Processes 1. Projects 2. International 3. Compensation & 4. Benefits
5. 6. 7. 8.
HR Operations Capability Development & Panalpina Academy
The HR practices of Panalpina world transport India (Pvt.) Ltd were found out by consulting and diagnosing to HR department. This department is led by Ms. Priya Varandani and some of her colleagues. Based on her information and conversation to some other such processes were found out:
The HR Project
The main process identified as. 1. Recruitment 2. Appraisal 3. Training 4. Payroll is outsourced: to focus on core business 5. Separation 6. Several employee engagement and empowering activities 7. CSR Activities 8. Comparison
“Recruiting the top talent for a job takes time and cost. Company tries to attract quality candidates who have the knowledge and skills especially in operations needed to help company grow.”Ms Varandani said. The fact is, the success with recruitment depends on how well job advertisements, are prepared for company’s recruitment process and assigning personnel with excellent interviewing skills. The notice works the internally & externally. Sometimes department finds that during budgeting an existing person would fit internally (shifting to department) here and company saves on hiring cost. Otherwise company goes for external replacement. This recruitment is of two types: 1. Internal recruitment
2. External recruitment Internal Recruitment: There is a policy of Internal Job Postings. Herein, the management posts certain vacancies through e-mail to all senior managers and requests them to communicate the same to their reportees. Also vacancy gets displayed at sites / branch office’s notice boards. People with a minimum experience of two years in their current positions are allowed to apply for postings. A subordinate applying for any position has to inform his manager or superior in his current division about the same. HR sends the short listed candidates CVs to the concerned Division/Function Heads, who in turn shortlists for interviews. After this a normal recruitment process is followed wherein interviews are conducted with the HR and concerned Division/Function Heads. After that selection has been done, the employees’ current Division/Function Heads are informed about the salary / position negotiated with the candidate. Basically company encourages proving themselves in other fields as well.
Employee Referrals Program
Panalpina has an employee referral program where the current employees send referrals to the HR department, for a vacancy in the company. Such referrals can be made by the employees even when a vacancy is not there. The information is kept in the HR Database. This kind of a program is aimed at making the recruiting process more cost effective and building better teamwork. Here so much of care is taken that referrals do not come from the HR department itself. Apart from this, employees in the Leadership band and the division and functional heads are not allowed to send in referrals. All the referred people have to undergo a standardized selection process. Only after the candidates are short listed and clear the rounds of interview with HR Executives and divisional heads, thereafter one will be selected. The final round of interview is with the HR manager who negotiates the salary and confirms the selection. External Recruitment External recruitment is aimed to attract available talent in the market and filling up vacancies through external sources. At Panalpina, external recruitment is done in this way: 8
Advertisements appear on electronics and print media. Applications are checked by the interested people and the resumes are forwarded through mails or post. HR department after receiving the resumes screens it and then shortlists the candidates. After telephonic interviewed and based on the result interview schedules for candidates. Panalpina has a centralized process for recruitment and selection. All activities are coordinated from the Corporate HR at Gurgaon. As soon as the candidates are selected, they are supposed to fill a check in form providing all their details. HR maintains individual files for all the employees working all over India which includes their application forms, the interview assessment sheets, their documents and all correspondence. This document serves as evidence. The company also takes the help of various recruitment consultants who are given details about the job profiles. These consultants then find out suitable candidates and then they coordinate the interviews and the check in formalities. Analysis: This Company requires highly skilled persons mainly in operations area who are trained in just in time and quality work, TQM, Supply Chain Management and also passes the quality work parameters. So it chooses employees from the industry itself and interviewers are also industry experts. Company do focused on hiring to get exact people and at least cost.
Induction and Orientation
The HR person will receive the new employee on the first day of joining and introduce him/her to the department head after completion of all formalities and paperwork. After his joining department does a job of Induction which includes
√ √ √ √
Introduction and orientation: About Company and the all colleagues. Sitting arrangement All resources availability: Business cards, Laptops or whatever the equipments are Whom to Report 9
Accounts for Compensation
At last an announcement mail is circulated to whole branches from headquarter of that region with details. The 2 days induction program is held once after every 3 months and it is mandatory for all the new joinees to attend. The Induction Schedule comprises of the respective Business/Function with respect to the following: Organization Structure of the Div / Function Overview of Business / Function Salient features / Characteristics of each Business / Function Overview of Services & Sales growth (for Businesses) √ Understanding the situation √ Successful Business initiatives during recent past /Major Challenges ahead √ Issues (if any) Logisticians combine a professional knowledge of each of these functions so that there is a coordination of resources in an organization. The inputs in these programs are provided through classroom presentation, discussions and sharing of experiences which follows by visit to various departments. Analysis: 1. The main objective of induction and orientation is to make him up in the work environment and culture, recognizing colleagues and being familiar with them. 2. To ensure full utilization of inherent skills of that new entrant and providing him with comprehensive foundation for efficient performance in his job.
√ √ √
An employee joining Panalpina remains in probation period of six months. During this period he/she is expected to understand his work profile, scope of work, duties and responsibilities. Also joinees need to be able to adjust themselves with the work culture of Panalpina. Since is it is a global company and it has operations worldwide so the culture plays an important factor. So it emphasizes on following the corporate culture for smooth functioning and the people around. At that time the Key performance Areas are set
according to the business of the company and the requirements at that time the employee is given targets and goals are set for him/her. The setting up of Individual Key Performance Areas (KPAs) takes place in several steps which is as below.
At the end of the probation period, his superior evaluates him based on various competencies and skills required for the particular job and also other competencies that management personnel should possess. Each of the competencies is defined in the Appraisal form for the ease of understanding of the appraiser. Previously the Probation Appraisal period used to differ based on the band structure. The recent revival of many other systems and policies, probation appraisal period for all the new joinees is changed and now it is biannually to give a suggestion as to each: ≈ Confirm the employee ≈ Extend his probation period ≈ Reject the employee Along with the above he is supposed to rate the employee based on the competencies as below on the nominal scale of 1-5: - Outstanding---------------5 - Exceeds Expectations----4
- Achieves expectations----3 - Improvement needed-----2 - Below expectations-------1
Analysis: A certain time period as trial is given to prove him /her on the expected job description in the positive and normal business environment. As per the performance, contribution, synergy one remains with the company.
Performance Management System (PMS)
After Confirmation of an employee in organization s/he passes through regular and continuous Performance Management System. The process starts after 3 months of confirmation for regular employee. This process happens annually. Now-a-days company is focusing on appraisal through 180°. With Key Points Indicators jotted down by the employees in his form (which is put with, the process discussed above), with weight distributed on every element of KPAs and by the end how much he has achieved are taken for consideration. Also employee does self appraisal (taking into account of leadership and behavioural factors).Then Manager’s role is to rate him/her. After that comparing both ratings a Performance Review Discussions (PRD) is there. During this discussions both look on the overall performance and rating. This PRD is very helpful in figuring out one’s abilities, efforts for certain activities, any initiatives, attitude towards growth as well as the factors which helped and hindered in this performance during that period of time. This Process is as in developmental form of assessment center in this company. It causes more employee engagement and even strengthens the bond between the company and individual. The employees to whom I interacted, they find it very much beneficial for their work and in career. It’s also a realization for both sides that what has been achieved, how, and what is rest to work upon. The ratings are again given on the nominal scale. Salary, rewards are attached to this process. So, whole process looks like as above. Analysis: The performance management system is a process of business through Management by 12
Objectives (MBO). The aim of performance management system is to count contribution in a constructive, effective way by setting their own targets in a challenging way, realizing their completion of the same and judging the overall achievement in the company .The reward in monetary and non monetary terms is also attached to this.
Training and Development
After processing out of PMS the company gets a large database. It widens the knowledge pool of company about employees. Also it works to understand employees in better way to develop design and revise to get output as per the need. Again there is a process of investment in people to train and make them more skilled in their jobs. The company has highly emphasized policy of training and it is conducted for all the employees internally or externally. The reason, I found are as such: • To understand objectively company’s strategy, diverse cultures, Division, departments, work processes etc. then finding out the existing problems of team, process or products. • Understanding and being expert with new methods and operational techniques with organization’s international and domestic experts. Various training methods, such as presentation, case study, brainstorming, team interaction, exercises and soft and hard skills guarantee the effectiveness and practicality of training results. • On-going coaching or on-job training guarantees the implementation of training results. Like the training for the customer support. The company plans for its training schedule yearly and is followed in batches according to the types of jobs. This training is mandatory for all employees. The trainings areas are set after long discussions among Manager, line manager and employee. The outcome is conveyed to HR department. During PRD the appraiser tries to find out the reportees’ areas to work upon. In the performance appraisal form itself, the career planning and the areas of opportunities are mentioned Like:
Roles to play Where does he/she looks him/herself in 1 Where does he/she looks him/herself in 3 Manager’s comment Then training accordingly In the end of training final marks are given outlined or additional benefits in him is also company interest.
year (short term?) year (long term?) and main learning are marked in his and the
Trainer: Internal or external Training is evaluated to calculate the Return on Investment on employees with various methods. Evaluation: It mainly depends on types of jobs. But from the HR Department’s effectiveness below mentioned techniques is taken care of. Reaction Level The feedback from the participants is taken out about trainers’ content, processes, satisfaction level, interest level recommendation for future etc. Learning Level How much knowledge and skills have been grabbed by him or her after training e.g.: the techniques to do the job of customer support. Behavior Level The ways of performing jobs are taken into consideration. The example I came across from her quote for the customer support was as below. The objective for training: “Answers phone promptly and courteously, on the customers with full information and make him/her satisfied” Answers phone within five rings. Greets caller with "Hello, This is Panalpina logistics Company, how can I help you, Sir?” Once those attributes are identified for that particular job, or employee, then items is used to mark on numerical or performance label on five points scale. The objective is to measure the value addition in the employees by the trainers. Analysis: Entire motive is to become excel in the new market with excellent and error free services. And this can only happen with trained employees sculpture, carved out with skills. This leads to sustainable
existence in turbulent and dynamic environments. This is seen that success of Panalpina solely dependent on the type of human capital it has gathered or invested over a period of time.
Compensation and Benefits
This company ensures for fair distribution of the remuneration and benefits, as per industry standard and on time to the employees. Since the company wants to imbibe a new growth model for HR, to become excel in their particular area also to remain attractive to work for company pays good compensation to all the employees. For convenience the Company has outsourced their payroll structure. The compensation Structure is as below. Basic Salary + HRA (50% of Basic) + Leave travel Allowances, Medical claim, Car allowances, (As per the band) + Bonuses 15
_____________________________________________ = (Total salary) Here superannuation as only from Employer’s contribution goes to the employee’s account .That amount can be refunded only after the retirement. It is a bit different from Provident fund that only employer’s contribution is in Super annuation account. ESI is calculated as (2.3% from employee’s fund +4.7 % from employer’s fund). Adding all the cost CTC comes in picture as compensation and benefits to employee from organization. As in corporate compensation scheme The Company is intending to have ‘Hybrid approach’ in which People are paid where the office is located i.e. In India employees are get paid as per Indian market and performance approach. But for Expatriates, the salaries are at the level of Headquartered employee. e.g.; the MD of this region has justified salary with the MD in Switzerland and also from the reflection of P & L Account. Analysis: The Company is following a merit based pay plan model to compensate their employees. Employees are evaluated through their work and based on their final result of organizations profitability appropriate rise in fixed compensations given.
Workers move time to time from the company, voluntarily or in voluntarily.
Continuous bad performance and no output even after so much of training then after thee warning employees are terminated.
Here several ways are there to retain the employees of the company who are the highly valuable. But even if employees does not retain with the organization he/she gets separation after filling up the feedback form.
This form includes: 1. What did he like? 2. Was this company able to give him/her a suitable platform for career growth? 3. What are the factors which caused as hindrance and also the reasons of dissatisfaction if any with the company? 4. Suggestions to improve the organization’s environment.
Newly implemented Practices in HR Department
Since the HR department is emerging as a vital part of the organization. So it needs widening its areas of operations and act on them. In the leadership of Ms. Priya Varandani, HR department is adding many more ways to make her department more efficient in alignment with business of the company. As a result employees are or may satisfied, they feel proud while working, be more productive etc. To align HR strategy with organization’s strategy, department is trying to posses innovation in their functions. Several new ways have been adopted. These new innovative ideas which have newly implemented and some of which are in pipeline are as below.
1. Employee Engagement Surveys:
It’s an initiative form headquarter, Switzerland. The aspect which is taken into consideration is how an employee feels about working in Panalpina? To make it worth and have more weight, Chairman of the company herself has flagged it up. In her words “The success of our business lies in the hands of our people and thus it is essential that we listen to you!”
It’s a confidential survey for Employee Development Programme. The objective is to develop work environment, generate new ideas leadership and behavioral aspects etc. This Programme has emerged as need of time. Since Company is attached with several countries for its day to day functions, there are numbers of inevitable hindrances occur as intervening variable. As a strategic value added services this work is solely dedicated to improve develop leadership behaviour of employees. This survey is continued during project Period in the company. It was third party service to the company to make sure that any information/feedback given by the persons cannot leak or in other words to maintain secrecy. The process was online. Time period was 15th October to 27th November. It was regional HR task to promote this activity for more participation. After certain period of time consultants would be giving the analysis and conclusion of this process. Mainly, the idea was to find out fit for the right job and place and areas of improvement and to be in expectations of employees.
2. Attaching HR to each department’s function
This innovation in HR department has a very strategic point. The purpose is to be in full association with the other department by liaisoning, daily reporting or any other ways to help other department in achieving their 100%. Other objectives are to support their employees, value addition and in finding out the right person for the right job and also to build up their competency.
3. Standardization of JOB Title: The Company started its operation in Switzerland but over a time period it went global. Being a corporate it required a corporate culture and standard process of task completion. Standard job title for same job description from all regions was one of such task. This process started with defining the job with specific word and then preparing job description accordingly. A detailed list of each job and their definition is also under process. This process looked simple but later it started facing problems, mainly of cultural. Like a title ‘HR Responsible’ does not appeal to Indian People. The cultural issues are becoming important factors while naming persons. In monetary cultures like some western countries People don’t bother whatever the title is but in non materialistic culture it matters a lot. In India it is a vice-versa, people seek their recognition with title. Other thing in Korea they have limited no of designation in department. Whereas in India designation as hierarchies are more. Some people see their career growth with these designations.
1. 2. 3. 4. 5. 6.
HR – Director HR- Manager HR - Asst. Manager HR - Senior Officer HR - Junior Officer HR – Executive
1.HR-Head 2.HR Associate 3.HR Trainee
So, both the HR department of India and Korea are sitting together and working out for common understanding. This work is necessary to have a title, business card and name plates.
CSR Activities of Panalpina is also handled by the HR department. These activities are as such: • Teach India programme: The growth rate of students in Indian schools is not in satisfactory ratio with that of teachers. So there is a call to youth for experiencing teachings, showing patriotism. By UN -The Times of India participations has tied to encourage Indian youth to be volunteer in educating India. Panalpina Employees have shown enthusiasm and pride by volunteer to this great work National development .This has helped in gaining confidence in their work. • Spending time with elderly people: Understanding the grievances, pain of separation and loneliness has worked to build empathy in the employees of Panalpina world Transport (India) Pvt. Ltd. And it increases teamwork and subsequently reflects in their work. • Tree plantation: On weekends as a team employees has planted a great deal of plants on the road side and in parks to make city cleaner. To build more employee engagement it has tried and added several recreational activities like Birthday celebration of employees, Picnic and river rafting etc for team building activities.
Subject of Concerns
I could make out from conversation or even accepted by them is handling the employees’ data base manually. The time is taken to get user friendly software like SAP to handle PMS process and some other functions as well. But they said the installation of such Software in process and department will be completed very soon. Employees were less known to the function of organizations or have limited knowledge about other functions. They may have little awareness of the impact of their functions on the departments and on business of the company. For recommendation several Organizational Developments programme can be practiced like Organization mirror, future search conferences.
Comparison with competitor in same Industry
The Federal Express (FedEx) is the world’s largest express transportation company with its presence in nearly 220 countries. Company differentiates itself through highly reliable, value-added services like guaranteed customs-cleared, 48-hour delivery for international consignments. Federal Express started operation in India in 1997 but it grabbed its business very soon because of its trusted brand value and aggressive marketing with error free and committed services. Also it has got benefits with pre-agreement with other larger MNCs which are operating in larger scale. It has almost same number of employees but the services shows the type of support for their services. Employees feel proud by wearing dresses with Fedex Logo. And also get remarked for their services and company got its advertisements. This Company focuses on larger and more frequent supply of sophisticated machines tools and small electronics parts to subsidiaries with their own fleet of air carriers and vehicles. Gati International, a Thailand based company. It has also able to make good chunk in the market share with its penetrated reach in the outskirts of India with its own supply chain distributors. The company is making its services with more linkage to interior reach into Indian subcontinent with its low cost services with reliable services.
This company is focusing leveraging its brand and service in new market. Company approaches to the domestic logistics and supply chain management companies and get its contract of sea and air freight work to sending materials outside. Still it has through B2B approach. The company has tried to maintain its revenue in the last fiscal by approaching new markets in Africa and Eastern Asia this happened because of its in-depth industry know-how and state-ofthe-art IT systems. Panalpina world transport (India) Pvt. Ltd. has also able to make itself less influenced from stiff competition in selection of its target audiences. Its target audiences are heavy machines catering to small and medium enterprises (SME), strong customer base in key industries of oil and gas. Another most important thing as it has a strong base of ocean freight which gets larger orders at lesser costs. The company has also less domestic competition because it globally integrated door-to-door forwarding solutions tailored to its customers'. But global competitor of this company has entered into India with their much advanced technology and their trusted brand value like Fortune 500 Company Federal Express, Gati and some other as well. The employees feel proud while working here. HR department has able to maintain a positive environment to work for. The reason I found out as being updated with the different practices and approached followed by other organizations and responding to it, emphasis on more and more employee participation. The Department is willingly trying to apply all the innovative ideas to make more efficient. Organization has become global and this has made HR department to think globally by breaking silos. A corporate culture has been developed to enhance the speed of functions and removing cultural confusions. Also, culture has caused variations in the means of job. So, to make it common, a standard job title is developed with the help of a clear cut job description depending on job anywhere in Panalpina. Dotted line shows earlier scenario. Now it has shifted to full line.
Panalpin a World Transpor t Ltd.
Panalpina World Transport India Pvt. Ltd.
I became able to see the functions logistics company with its sophisticated operations, which is regarded in this market, an ideal and lucrative place and its development, ways of employees’ retention and development of talents, some soft skills, practical experience of all the theories written in books, Discipline etc. The success of organization of organization depends on: → The alignment of HR practices process policies and philosophy with that of organizations. → Coming up with innovative practices and changing as per the demand can only keep organization on track. → The outcomes depend on the means adopted. → Care is the glue that keeps relationship together if organizations don't care, people tend to leave.
Bibliography 1. http://www.fundinguniverse.com/company-histories/PanalpinaWorld-Transport-Holding-Ltd-Company-History.html 2. www.panalpina.com 3. www.ibed.com 4. http://www.fundinguniverse.com
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