Executive Summary

We intend to make a study on the HR practices followed in Focuz, a multi

millon business conglomerate in South India.
This was achieved by …
Introduction
Focus Group, is an ever expanding multi million business conglomerate,
established in 1978, supported by over 2000 committed staff force, with
diversified businesses of Automobiles, IT, ITES and Tourism domains. Led by
highly experienced promoters who are thorough professionals with farsighted
vision, propelled by an infusion of young blood, the group aims to become a
world player in IT, ITES and Tourism. It also aims to break new grounds in
standards of exemplary service leading to highly delighted customers. Annual
turnover of this company is above Rs 200 crores.
Vision

Focuz has defined its vision as “to improve the quality of life of the
communities we serve. This requires us to grow aggressively in focused areas of
business.”

The Focuz name is a unique asset representing the focus to the future,
determination with quality in service and trust. Leveraging this asset to enhance
Group synergy and becoming globally competitive is the route to sustained
growth and long-term success.

Mission of Focuz is “to become global leaders in respective business domains

group concentrates and to deliver superior value to our customers and
employees and society at large.”
The Focuz Group has always sought to be a value-driven organisation. These
values continue to direct the Group's growth and businesses.
Integrity: This implies conducting the business fairly, with honesty and
transparency. Everything they do must stand the test of public scrutiny.
Tradition: They say that maintain their tradition in all the activities in present
and future.

Unity: They work cohesively with their colleagues across the Group and with
their customers and partners around the world, building strong relationships
based on tolerance, understanding and mutual cooperation.

Responsibility: continue to be responsible, sensitive to the countries,

communities and environments in which they work, always ensuring that what
comes from the people goes back to the people many times over.

Kochi, the industrial capital of Kerala state, one of the southern states of India,
witnessed the birth of a small Automobile Spare Parts Shop two decades ago
which was later to became India's Largest Automobile Spares Parts Retailer.
Further the group entered successfully to multiple Vehicle dealerships and
service, IT consultancy, Hardware and peripherals, Software development,
Advanced education, Animation, BPO, and tourism in a big way.

Focuz group was started in 1978 at Kochi by the following experienced

Promoters having 40 years of management experience. They are Mr.P.T.Jose,
Mr.Ignatius Alven, Late Mr.P.A.Rappai, Mr.N.V.Devassy, Mr.M.F.Jose.
The founder directors played a vital role in spearheading the company an active
and respected large scale business player in Automobiles, IT, ITES and
Tourism.

Subsidiary of Focuz group

Focuz Motors
Dealer of TATA Light Commercial Vehicles in Kerala. We are also having
service dealership of TATA Passenger Cars. We distribute genuine TATA spare
parts all over Kerala

• Cochin,Vyttila,Kollam,Trivandrum

Focuz Bi- Wheelers

Dealers for Hero Honda in Kochi. We deal with all the models of Hero Honda
bikes. Keeping up to our motto of customer satisfaction we have fully
automated service station of over 4000 sq ft and a reliable helpline service to
provide efficient after sales service.

• Cochin

Focuz Auto mobiles

The largest retailer of automobile spare parts in India. At the company has 46
branches spread over Kerala, Tamilnadu, Karnataka, Maharashtra and Delhi.
The company reaches out to the needs of 3500 customers daily. All the
branches have ready stock spare parts of all major vehicles in India.

• Kannur,Kozhikodu,Palakkad,Thrissur,
Ernakulam,Kottayam,Kollam,Trivandrum

• Focuz Infotech
Providing total I.T. solutions to clients. Offering Products and Services in Linux
Platform.

• Development Centre : Cochin

Sales Office: World wide

• Focuz Holidays
"We are young by energy, old by wisdom we care like a mother so you enjoy
as children We remember you are unique and not a file in a record We are
truly God sent for your worries We are 'Focuz Holidays ' Delivering Dreams to
Destinations"

• Kannur,Kozhikodu,Palakkad,Thrissur,
Ernakulam,Kottayam,Kollam,Trivandrum

• Focuz Computers
Authorized sales and service dealer for major brands like HP, Compaq, IBM,
Acer, HCL, APC etc. Nine branches accross Kerala. Largest Reseller for
Branded PC's in Kerala.

• Cochin,Kollam,Trivandrum,Kannur, Kozhikodu,Palakkad, Thrissur,

Kottayam,
Alappuzha

• Focuz Animation
Focuz animation is the animation production facility of benz infotech, a part of
the business conglomerate "Focuz Group" established in 1978.The group has
emerged as an industry leader with proven experience having a turnover of
 rs.200 crore (approx 50 million USD) with a manpower backbone of more than
1500 employees.

• Cochin

• FOCUZ Earth Movers

All Kerala dealer of TEREX | VECTRA Backhoe Loaders. TEREX | VECTRA is the
third larget manufacturers of construction equipment in the world.

• Cochin

• FOCUZ Travels
Focuz Travels is a leading tour operating agency offering hospitality services
for travelers from across the globe. Operating from GOD'S OWN COUNTRY
focuz Travels arranges services ranging from luxurious business class hotels
to budget guesthouses, from a simple hotel reservation to full service tour
packages

• Cochin

• FOCUZ Car mart

We're here to build India's most trusted Car buying and selling destination.
We're working to providing buyers and sellers with increasingly sophisticated
services to maximize their next car sale or purchase."

• Cochin

Human Resource
Focuz group is diversified into various sectors like automobiles, BPO,
computers, animation etc and hence it has an employee strength of over 2000
,The automobile and spare parts section alone has a work force of over 600.
HR Planning
The HR department conducts a study regarding the number of employees
required in the different branches and allocate them appropriately. This is done
by taking into consideration factors such as the skills required, vacancies,
department expansions and reductions and also factors in the labour market.
The recruitment
Corporate HR manager gets the requirements for each division. The company
has tie ups with other recruitment companies. Regular advertisements are posted
in newspapers.
Selection
The resumes of the interested candidates are send to the corporate office. An
interview is conducted by the HR manager. Then the candidate is sent to the
division where the vacancy is available. Another interview is conducted by the
divisional manager to determine whether the candidate is suitable and has the
required skill for the job. Before the concept of corporate office, the recruitment
was taken care by each division. Each Division Manager gets the requirements
from each branch , and the interview was taken by the Division Manager.
Training and development programmes
Since the company deals with Dealership, there is no work force of unskilled
labour , the company mainly consists of salesmen who markets and sells the
product.

Uniqueness of the company with respect to other companies in

Kerala
The key feature of the company that attracts any Management student to
study this company is the fact of successfully completion of 31 yrs with no
labour union.

One of the major steps to enhance the productivity of the employees is

motivation. The following are some of the major steps practised in Focuz to
motivate their employees.
1. Transparent relation between the employee and the directors:
Any employee in this organization can approach to any of the directors and
share their problems. Also the directors have a personal attachment with
most of the employees. The directors are aware of the background the
employee come from, the family problem they might be facing. They discuss
the family issues with the directors, this enables the directors to help them
find a solution for their problem and helps them , so that their problems
don’t get affected in their work. It is mainly due to this transparent nature
 that has enabled the company to successfully complete 31 yrs with no labour
union.
The entire system in this organization is transparent. It is transparent to such
a level that even the bank accounts of the board of directors are managed by
the employees. It is so transparent that sometimes the board of directors
themselves might not know their balance in the bank but the employees in
the finance department will know.

2.Incentives :
There are 3 types of incentives given monthly, quarterly and yearly , these are
all target based incentives. Each sales man has a target, each branch has a sales
target, profit target, expense target, inventory target, net profit target, how much
outstanding target.
If all the targets are met in a branch, then a best branch is awarded. Branch
incentive is given and the money is split by all the employees in that branch
.Similarly, If all the targets are met in a division, then a best division is
awarded. The division incentive is given and the money is split by all the
employees in that division. If individual targets are met then only the
individuals are given the incentives.
Bonus is mandatory and is given to all the permanent employees. An
experience staff gets a probation period of 6 months and a fresher gets a
probation period of 1 to 2 yrs. After which the bonus will be given to them. The
probation period is lifted when the branch manager of that staff sends a
confidential report to the directors . The directors will review the report and
check if he can be confirmed as a permanent staff. If the employee has worked
exceptionally well then a salary increase will be given with a lift of probation
period. This will be already stated in the appointment letter which says about
the probation period and increase in salary on the basis of their performance.
All the confirmed staff members gets a bonus , no staff that is on probation gets
a bonus . The bonus was given at 8.33% of an employees yearly salary. That is
close to 1 months salary of an employee But the new government rule states that
the bonus should be a minimum of Rs 3500 . Focus has also given a bonus of
nearly 20 % at the time when they have made huge profits. This shows how
Focuz has tried to keep their employees satisfied and also rewarded their
employees for their hard work. Such signs will make the employees to work
with loyalty for the company. The competitors of Focuz are different for
different verticals, for Spare Parts they have different competitors, for Hero
Honda different competitors. Such a unique company with different divisions
with no labour union especially in kerala is very difficult to find.
3.Other employee oriented programmes
Focuz regularly conducts cultural meet, sports meet, cricket matches,
interdivision cricket matches etc for their employees and families. They also
celebrate all sorts of festivals. The directors take time from their busy schedule
and attend every staff members marriage, be it the General Manager or the
cleaning staff or the salesman or driver. This again brings the directors close to
the employees, and gives a feeling that they care about each adn every
employee who works for them.

4. Checking the satisfaction level of the employees

There is another strategy the company takes to check the satisfaction level of
the workers, and find out if the employees have any problems. Yearly once, any
one of the director will go to all the shops and all the divisions and meet all the
1400 staff personally. They include the punes, sweepers , drivers, salesmen,
managers ,general managers etc. This gives the employees a feel that they are
also an important and integral part of the company. This interaction is done
before the performance appraisal i.e. before the increment is allotted for each
employee. They go to every division , and every branch , even if the branch
consist of only 4 members, each employee is called and spoken face to face
over the table. They are asked if they have any problems, if they have any issues
with their senior managers, if they have any issues in the working conditions.
This is a very good method which makes the employees open up .
The reason why the directors go to the employees and not ask the employees to
come to the directors cabin or through a phone call , is to give them a feel that
they are not being questioned and judged. But to give them a feel that they are
important to the company .And by solving their issues, the employees can
perform better. It should seem like a casual meeting, other wise the employees
need not open up.
At the end of these meetings , the directors will get a sense of idea on what all
issues are existing in the division , which all managers create problems , which
all employees are not efficient , what changes should be brought about in the
division that should be done to remove issues . It is truly an eye opener method
to understand the problems of the employees faced in the company and also the
flaws of the company. This method also gives the employees to tell their issues
directly to the management without getting any middle manager involved. This
method is also another way to improve the loyalty of the employees in the
company.
5. suggestion forms

There is also a suggestion form, which is a prepaid inland , that is available in

every branch. Which has the address of the HR directors printed on the inland ,
and can be send with the employees complaints . Many employees send their
complaints through it , the issues can vary for minor complaints to major .
Minor complaints can include the food provided in the staff quarter is not tasty,
water is not available in the staff quarter, Some rules are broken in the staff
quarters. The staff quarter accommodates an employee strength of around 160
in Cochin itself, and has staff quarter facility in every branch. Major issues such
as Manager is not treating the employees well , or some malpractice among the
employees can be brought to the notice of the directors. Thought the complaints
come directly to the directors the issues will be solved through the proper
channel of managers below them . A path is open for the employees to reach the
top level directors with their issues , but the solution found is through the proper
chain of hierarchy .

6. Social work
Focuz mainly solves employees issues, Focuz helps them financially if required.
The Focuz Groups policy is to help someone they know than a stranger. An
employee had liver problems, and was unable to work and was in a critical
condition, hence he was asked to stop coming for work , but he is given his
monthly salary for the rest of his life so that he can support his family . Another
employee had a physical disability , and again this employee could not work
after some time , so he was given leave, but also giving a monthly salary for his
life time. These decisions are not taken simply by the directors, But the
suggestions from other employees are taken and for genuine cases such
considerations are given.

7 Eplyoee turnover
A few years back , when there was a boom in the industry , the Management
notice employee turnover was getting higher and higher. When the matter
was taken up and they studied that the employees were shifting into
companies that were giving a higher pay . They realized that the employees
were not satisfied with the salaries given to the employees . Thus the salaries
structure was changed and a 30% increase was given to all the employees. A
problem Focuz experienced due this change was that, the employees would
gladly accept any increase in salary , but they will expect the same increase
the next year. So the management will have to call for several meetings to
address the employees and give justification for not increasing their salaries
at a higher rate the following year
8. Impact of Recession.
The impact of recession did not affect the company at a large scale . Only
the Computer section faced some losses as the customers who buy
computers were the one’s to get affected by recession. The Spare Parts
division and Automobiles division did not get affected to a major level. The
Bi-wheelers division had a profit making scenario during the recession
period, as customers preferred bi-wheelers over four wheelers. Even in the
Indian market the sale of Bi-wheelers had increased tremendously especially
the market for Hero Honda and a decline in the market for TVS and BAJAJ.
Since Focus is a Dealer for Hero Honda , they also experienced a huge sales
for Hero Honda Bi-wheelers.
Conclusion.