PROJECT REPORT

ON

HR PRACTICES FOLLOWED BY ITC

(Imperial Tobacco India Ltd.)

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD

THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION
(2008-11)

SUBMITTED TO : SUBMITTED BY
MR.SANJAY NAUTIYAL SONAL SRIVASTAVA
FACULTY – G.E.U G.E.U, DEHRADUN

GRAPHIC ERA UNIVERSITY,

DEHRADUN
 DECLARATION

This project report on “a study of HR practices in ITC” in ITC

Saharanpur is submitted by me for the partial fulfillment of the
course of B.B.A from Graphic Era University.

This is an original work done by me expected the guidance

received which has been properly acknowledgement in the report.

This is not the copy of any other report or any part of it hasn’t been
submitted for the award of any degree or diploma.

Sonal Srivastava
Graphic Era University
 ACKNOWLEDGEMENT

A successful completion of job is based upon the chain of factors

combining together to make an integral outcome. The cooperation
of the factors mixed with sincere effort can lead to best
performance. My project is also no exception to this. Therefore I
take this opportunity to express deep sense of gratitude to all those
who have contributed significantly by sharing their knowledge and
experience in the completion of this project work.

I would like to thanks Mr. Rahul Karan Singh(Circle Head) who

gave me a free hand as far as going about the project work
concerned and Mr. Harish Bhatt(Area executive ) for his timely
response via e-mail & personal meeting, which immensely helped
in giving the project the initial direction it needed. I also express
my sincere thank to my internal guide Mr. Sanjay Nautiyal for his
constant support and guidance throughout the project.

I have made an honest and dedicated attempt to make the research

material as authentic as it could. And I earnestly hope that it
provides useful and workable information and knowledge to any
person reading it.

Submitted by
Sonal Srivastava
 CERTIFICATE

This is to certify that the dissertation title “EVALUATION OF

HR PRACTICES AT ITC” submitted by SONAL SRIVASTAVA

during semester IIIrd of BBA(HR) program (Batch 2008-11)

embodies original work done by her.

Signature of faculty guide:

Name:
Destination:
Center:
 PREFACE

I have made this report as an essential part of V semester course

curriculum of BBA. The title of project is “A study of HR practices
in ITC” at ITC Saharanpur.
In the course of my training I have had the golden opportunity
of seeing the practical application of what ever theoretical
knowledge was imparted to me in a class room studies. I have
had the good fortune in interacting with the executive and
employee of ITC Saharanpur who were very warm and cordial
in their conduct towards me.
My report mainly focuses on “study of HR practices in ITC”.
I hope that the finding of the project work must conform with
the companiy’s expectation & suggestion made on that basis must
be useful for the total performance of the employees of “ITC
SAHARANPUR.”
 Table Of Contents

SUMMARY

1. Executive summary

2. Company Profile

3. History of ITC

4. Certification of ITC

5. ITC business portfolio

6. The HR Practices

7. Research Methodology

8. Data Analysis and Interpretation

9. Findings

10. Conclusions

11. Recommendation

12. Appendices

13. Refrences
 EXECUTIVE SUMMARY
ITC constantly endeavors to benchmark its products, services and
processes to global standards. The Company's pursuit of excellence
has earned it national and international honors. ITC is one of the
eight Indian companies to figure in Forbes A-List for 2004,
featuring 400 of "the world's best big companies". Forbes has also
named ITC among Asia's'Fab 50' and the World's Most Reputable
Companies

ITC is the first Indian company and the second in the world to win
the prestigious Development Gateway Award. It won the $100,000
Award for the year 2005 for its trailblazing ITC e-Choupal
initiative which has achieved the scale of a movement in rural
India. The Development Gateway Award recognizes ITC's e-
Choupal as the most exemplary contribution in the field of
Information and Communication Technologies (ICT) for
development during the last 10 years. ITC e-Choupal won the
Award for the importance of its contribution to development
priorities like poverty reduction, its scale and replicability,
sustainability and transparency.

The project helped me to go through the various HR practices

prevalent at ITC like it helped me
 To know the recruitment & selection procedures adopted
in this company.

 To improve training and development programs used in

the company.

 To know how the performance of the employees is being

appraised.

 To provide better employee welfare.

 To increase labour productivity.

Company profile

ITC Limited is an Indian conglomerate founded on 24 August

1910. The company (formerly known as Imperial Tobacco
Company of India Limited) is currently headed by Yogesh Chander
Deveshwar. The company has its registered office in Kolkata. It
employs over 20,000 people at more than 60 locations across India.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards

& Specialty Papers, Packaging, Agri-Business, Packaged Foods &
Confectionery, Information Technology, Branded Apparel,
Personal Care, Stationery, Safety Matches and other FMCG
products. While ITC is an outstanding market leader in its
traditional businesses of Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is rapidly gaining market share
even in its nascent businesses of Packaged Foods & Confectionery,
Branded Apparel, Personal Care and Stationery.

It ranks third in pre-tax profit among India's private sector

corporations. ITC is one of India's foremost private sector
companies with a market capitalization of over US $ 22 billion and
a turnover of US $ 6 billion.

ITC is rated among the World's Best Big Companies, Asia's 'Fab
50' and the World's Most Reputable Companies by Forbes
magazine, among India's Most Respected Companies by Business
World and among India's Most Valuable Companies by Business
Today. ITC ranks among India's `10 Most Valuable
(Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times. ITC also ranks among Asia's 50
best performing companies compiled by Business Week.

ITC is one of India's most valuable and respected corporations.

Vision statement

Sustain ITC's position as one of India's most valuable corporations

through world class performance, creating growing value for the
Indian economy and the Company’s stakeholders

The mission statement

To enhance the wealth generating capability of the enterprise in a

globalizing environment, delivering superior and sustainable
stakeholder value

Positioning statement

"Enduring Value. For the nation. For the Shareholder."

ITC’s corporate strategies are:

• Create multiple drivers of growth by developing a portfolio

of world class businesses that best matches organizational
capability with opportunities in domestic and export markets.
• Continue to focus on the chosen portfolio of FMCG, Hotels,
Paper, Paperboards & Packaging, Agri Business and Information
Technology.
• Benchmark the health of each business comprehensively
across the criteria of Market Standing, Profitability and Internal
Vitality.
• Ensure that each of its businesses is world class and
internationally competitive.
• Enhance the competitive power of the portfolio through
synergies derived by blending the diverse skills and capabilities’
residing in ITC’s various businesses.
• Create distributed leadership within the organization by
nurturing talented and focused top management teams for each of
the businesses.
• Continuously strengthen and refine Corporate Governance
processes and systems to catalyze the

entrepreneurial energies of management by striking the golden

balance between executive freedom and the need for effective
control and accountability.
HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name of

'Imperial Tobacco Company of India Limited'. A leased office on
Radha Bazar Lane, Kolkata, was the centre of the Company's
existence. The Company celebrated its 16th birthday on August 24,
1926, by purchasing the plot of land situated at 37, Chowringhee,
(now renamed J.L. Nehru Road) Kolkata, for the sum of Rs
310,000. The Company's ownership progressively Indianised, and
the name of the Company was changed to I.T.C. Limited in 1974.
In recognition of the Company's multi-business portfolio
encompassing a wide range of businesses - Cigarettes & Tobacco,
Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and
Greeting Gifting & Stationery - the full stops in the Company's
name were removed effective September 18, 2001.

ITC's Packaging & Printing Business was set up in 1925 as a

strategic backward integration for ITC's Cigarettes business. It is
today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the
acquisition of a hotel in Chennai which was rechristened 'ITC-
Welcomgroup Hotel Chola'. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 70 owned and
managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC

Bhadrachalam Paperboards Limited, which today has become the
market leader in India.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal
and British joint venture. In August 2002, Surya Tobacco
became a subsidiary of ITC Limited and its name was changed to
Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper
manufacturing company and a major supplier of tissue paper to the
cigarette industry. Tribeni Tissues Division was merged with the
Bhadrachalam Paperboards Division to form the Paperboards &
Specialty Papers Division in November 2002.

In 1990, leveraging its agri-sourcing competency ITC set up the

Agri Business Division for export of agri-commodities. ITC's
unique and now widely acknowledged e-Choupal initiative began
in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9
states covering over 4 million farmers. ITC's first rural mall,
christened 'Choupal Sagaar' was inaugurated in August 2004 at
Sehore. On the rural retail front, 24 'Choupal Saagars' are now
operatonal in the 3 states of Madhya Pradesh, Maharashtra and
Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under
the brand name 'Expressions'. In 2002, the product range was
enlarged with the introduction of Gift wrappers, Autograph books
and Slam books. In the same year, ITC also launched 'Expressions
Matrubhasha', a vernacular range of greeting cards in eight
languages and 'Expressions Paperkraft', a range of premium
stationery products. In 2003, the company rolled out 'Classmate', a
range of notebooks in the school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills
Sport range of international quality relaxed wear for men and
women in 2000. The Wills Lifestyle chain of exclusive stores later
expanded its range to include Wills Classic formal wear
(2002) and Wills Clublife evening wear (2003). ITC also initiated a
foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of
the country's most premier fashion event - Wills Lifestyle India
Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion
Design industry. In 2007, the Company introduced 'Miss Players'-
a fashion brand in the popular segment for the young woman.

In 2000, ITC spun off its information technology business into a

wholly owned subsidiary, ITC Infotech India Limited, to more
aggressively pursue emerging opportunities in this area.
ITC's foray into the Foods business is an outstanding example of
successfully blending multiple internal competencies to create a
new driver of business growth. It began in August 2001 with the
introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes.

In 2002, ITC entered the confectionery and staples segments with

the launch of the brands mint-o and Candyman confectionery and
Aashirvaad atta (wheat flour). 2003 witnessed the introduction of
Sunfeast as the Company entered the biscuits segment. ITC's
entered the fast growing branded snacks category with Bingo! in
2007.
In 2002, ITC's philosophy of contributing to enhancing the
competitiveness of the entire value chain found yet another
expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep, Aim, Aim
Mega and Aim Metro.

ITC forayed into the marketing of agarbattis (incense sticks) in

2003 marked the manifestation of its partnership with the
cottage sector. ITC's popular agarbattis brands include Spriha and
Mangaldeep across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine

fragrances and bath & body care products for men and women in
July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for
men (Inizio Homme) and women (Inizio Femme). Continuing with
its tradition of bringing world class products to Indian consumers
the Company launched 'Fiama Di Wills', a premium range of
Shampoos, Shower Gels and Soaps in September, October and
December 2007 respectively. The Company also launched the
'Superia' range of Soaps and Shampoos in the mass-market
segment at select markets in October 2007 and Vivel De Wills &
Vivel range of soaps in February and Vivel range of shampoos in
June 2008.
 Certification of ITC

ITC constantly endeavors to benchmark its products, services and

processes to global standards. The Company's pursuit of excellence
has earned it national and international honors. ITC is one of the
eight Indian companies to figure in Forbes A-List for 2004,
featuring 400 of "the world's best big companies". Forbes has also
named ITC among Asia's'Fab 50' and the World's Most Reputable
Companies
ITC is the first Indian company and the second in the world to win
the prestigious Development Gateway Award. It won the $100,000
Award for the year 2005 for its trailblazing ITC e-Choupal initiative
which has achieved the scale of a movement in rural India. The
Development Gateway Award recognizes ITC's e-Choupal as the
most exemplary contribution in the field of Information and
Communication Technologies (ICT) for development during the last
10 years. ITC e-Choupal won the Award for the importance of
its contribution to development priorities like poverty reduction,
its scale and replicability, sustainability and transparency.

ITC has won the inaugural 'World Business Award', the worldwide
business award recognizing companies who have made significant
efforts to create sustainable livelihood opportunities and enduring
wealth in developing countries. The award has been instituted
jointly by the United Nations Development Programme (UNDP),
International Chamber of Commerce (ICC) and the HRH Prince of
Wales International Business Leaders Forum (IBLF).

ITC is the first Corporate to receive the Annual FICCI Outstanding

Vision Corporate Triple Impact Award in 2007 for its invaluable
contribution to the triple bottom line benchmarks of building
economic, social and natural capital for the nation.

ITC has won the Golden Peacock Awards for 'Corporate Social
Responsibility (Asia)' in 2007, the Award for ‘CSR in Emerging
Economies 2005’ and ‘Excellence in Corporate Governance' in the
same year. These Awards have been instituted by the Institute of
Directors, New Delhi, in association with the World Council for
Corporate Governance and Centre for Corporate Governance

ITC's cigarette factory in Kolkata is the first such unit in India to get
ISO 9000 quality certification and the first among cigarette
factories in the world to be awarded the ISO 14001 certification

ITC Maurya in New Delhi is the first hotel in India to get the
coveted ISO 14001 Environment Management Systems
certification.

ITC Filtrona is the first cigarette filter company in the world to

obtain ISO 14001

ITC Infotech finds pride of place among a select group of SEI CMM
Level 5 companies in the world.

ITC's Green Leaf Threshing plant in Chirala is the first in India

and among the first 10 units in the world to bag the Social
Accountability (SA 8000) certification
ITC Chairman Y C Deveshwar has received several honors over the
years. Notable among them are:

Year Award

2007 SAM/SPG Sustainability Leadership Award

conferred at the International Sustainability
Leadership Symposium, Zurich.
2006 Business Person of the Year from UK Trade &
Investment, the UK Government organisation that
supports overseas businesses in that country.
2006 Inducted into the `Hall of Pride' by the 93rd Indian
Science Congress
Honoured with the Teacher's Lifetime
2005 Achievement Award
Manager Entrepreneur of the Year from Ernst &
2001 Young Retail Visionary of the Year from Images,
India's only fashion and retail trade magazine
Honorary Fellowship from the All India
1998 Management Association
Distinguished Alumni Award from IIT, Delhi
1996
Marketing Man of the Year from A&M, the leading
1994 marketing magazine
1986 Meridien Hotelier of the Year

ITC has won the 'Enterprise Business Transformation Award' for

Asia Pacific (Apac), instituted by Infosys Technologies and Wharton
School of the University of Pennsylvania for its celebrated e-
Choupal initiative.

ITC is the only Indian FMCG Company to have featured in the

Forbes 2000 list. The Forbes 2000 is a comprehensive ranking of
the world's biggest companies, measured by a composite of sales,
profits, assets and market value. The list spans 51 countries and 27
industries.

ITC continues its dominance of The Economic Times' Brand Equity

listing of India's 100 Biggest FMCG Brands, with three brands from
its stable making it to the top five. Gold Flake remains India's
biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITC's
Scissors brand ranks at No 5 and is the only new entrant into the
top 10.

Restaurant magazine has chosen Bukhara at the ITC Maurya, New

Delhi as the best Indian restaurant in the world and the best
restaurant in Asia. Bukhara has also been adjudged one of the top
50 restaurants in the world by the London based magazine 'The
Good Food Guide'. Bukhara is the only South Asian restaurant to
figure in the list.

ITC's Lifestyle Retailing Business Division (LRBD) has won the

"Best Supply Chain Practices Award" for time-effective and cost-
efficient Logistics Management in Organized Retail. The awards
were organized by Retailers Association of India (rai) in
association with ITW Signode - the International leaders in
packaging solutions.
ITC's EHS Policy
ITC’s mission is to sustain and enhance the wealth-generating
capacity of its portfolio of businesses in a progressively
globalising environment. As one of India’s premier
corporations employing a vast quantum of societal resources,
ITC seeks to fulfil a larger role by enlarging its contribution to
the society of which it is a part. The trusteeship role related to
social and environmental resources, aligned to the pursuit of
economic objectives, is the cornerstone of ITC’s Environment,
Health and Safety philosophy. ITC’s EHS philosophy cognises
for the twin needs of conservation and creation of productive
resources.

In the multi-business context of ITC, Corporate Strategies are

designed to create enduring value for the nation and the
shareholder, through leadership in each business and the
attainment of world-class competitive capabilities across the
value chain. The objective of leadership extends to all facets of
business operations including Environment, Health and Safety.

ITC is, therefore, committed to conducting its operations with

due regard for the environment, and providing a safe and
healthy workplace for each employee. Various international
and national awards and accreditations stand testimony to
ITC’s commitment to EHS. Such external recognition further
reinforces the need to direct the collective endeavour of the
Company’s employees at all levels towards sustaining and
continuously improving standards of Environment, Health and
Safety in a bid to attain and exceed benchmarked standards,
whether regulatory or otherwise.

In particular, it is ITC’s EHS policy -

 To contribute to sustainable development through the
establishment and implementation of environment
standards that are scientifically tested and meet the
requirement of relevant laws, regulations and codes of
practice.
 To take account of environment, occupational health and
safety in planning and decision-making.

 To provide appropriate training and disseminate

information to enable all employees to accept individual
responsibility for Environment, Health and Safety,
implement best practices, and work in partnership to
create a culture of continuous improvement.

 To instil a sense of duty in every employee towards

personal safety, as well as that of others who may be
affected by the employee’s actions.

 To provide and maintain facilities, equipment, operations

and working conditions which are safe for employees,
visitors and contractors at the Company’s premises.

 To ensure safe handling, storage, use and disposal of all

substances and materials that are classified as hazardous
to health and environment.

 To reduce waste, conserve energy, and promote recycling

of materials wherever possible.

 To institute and implement a system of regular EHS audit

in order to assure compliance with laid down policy,
benchmarked standards, and requirements of laws,
regulations and applicable codes of practice.
  To proactively share information with business partners
towards inculcating world-class EHS standards across the
value chain of which ITC is a part.

All employees of ITC are expected to adhere to and comply with

the EHS Policy and Corporate Standards on EHS.

ITC’s EHS Policy extends to all sites of the Company. It will be

the overall responsibility of the Divisional/SBU Chief
Executives, through the members of their Divisional
Management Committees, General Managers and Unit Heads,
to ensure implementation of this Policy and Corporate
Standards on EHS, including formation of various committees
and designating individuals for specific responsibilities in
respect of their Division/SBU.

The Corporate EHS Department is responsible for reviewing

and updating Corporate Standards on EHS, and for providing
guidance and support to all concern.

.
ITC -FMCG
ITC -FMCG

Cigarettes
ITC is the market leader in cigarettes in India. It’s highly
popular portfolio of brands includes Insignia, India Kings,
Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan,
Berkeley, Bristol and Flake.

ITC's cigarettes are produced in its state-of-the-art factories at

Bangalore, Munger, Saharanpur and Kolkata. These factories
are known for their high levels of quality, contemporary
technology and work environment.

ITC's has presence in overseas markets as well. In the

extremely competitive US market, ITC offers high-quality,
value-priced cigarettes and Roll-your-own solutions. In West
Asia, ITC has become a key player in the GCC markets through
growing volumes of its brands.

Foods

ITC made its entry into the branded & packaged Foods
business in August 2001 with the launch of the Kitchens of
India brand. A more broad-based entry has been made since
June 2002 with brand launches in the Confectionery, Staples
and Snack Foods segments.

The Foods business strives to deliver quality food products to

the consumer. All products of ITC's Foods business available in
the market today have been crafted based on consumer
insights developed through extensive market research. ITC's
state-of-the-art Product Development facility is located at
Bangalore.

The Foods business is represented in 4 categories in the

market. These are:

 Ready To Eat Foods

 Staples
 Confectionery
 Snack Foods

ITC’s six brand of food include:

 Kitchens of India
 Aashirvaad
 Sun feast
 mint-o
 Candyman
 Bingo!

Lifestyle retailing

ITC’s ventured into Lifestyle Retailing Business Division

through its Wills Lifestyle chain of exclusive specialty stores.

Wills Lifestyle, the fashion destination, offers a tempting choice

of Wills Classic work wear, Wills Sport relaxed wear, Wills Club
life evening wear, fashion accessories and Essenza Di Wills – an
exclusive range of fine fragrances and bath & body care
products and Fiama Di Wills - a range of premium shampoos
and shower gels. Wills Lifestyle has also introduced Wills
Signature designer wear, designed by the leading designers of
the country.

With a distinctive presence across segments at the premium

end, ITC has also established John Players as a brand that offers
a complete fashion wardrobe to the male youth of today.

Education & Stationary

ITC made its entry into the stationery business in the year
2002 with its premium range of notebooks. ITC's Education
and Stationery Products are marketed under the brands
"Classmate" and "Paperkraft".

The Classmate range of products is targeted at satisfying

education & stationery needs of students & young adults. The
product range includes Notebooks, Math Instruments,
Scholastic Products as well as Writing Instruments.

The Paperkraft range of products aims at satisfying the

stationery needs & office consumables need of office executives
& working professional. The continuously expanding product
range under Paperkraft includes Premium Business Paper,
Paper Stationery, Markers & Highlighters.

Safety Matches

ITC’s range of Safety matches include popular brands like i Kno,

Mangaldeep, Aim, Aim Mega and Aim Metro. With
differentiated product features and innovative value additions,
these brands effectively address the needs of different
consumer segments. The Aim brand is the largest selling brand
of Safety Matches in India.

ITC also exports regular and premium safety matches brands to

markets such as Middle East, Africa and the USA. ITC aims to
enhance the competitiveness of the small and medium scale
sectors through its complementary R&D based product
development and marketing strengths, especially the breadth
and depth of the Company's trade marketing and distribution.

Aggarbattis

ITC commenced marketing Agarbattis (Incense Sticks) sourced

from small-scale and cottage units in 2003. Mangaldeep
Agarbattis are available in a wide range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini,
Anushri, Ananth and Mogra.Durbar Gold is a new offering from
Mangaldeep launched in Andhra Pradesh and has received
wide consumer acceptance. The premium range from ITC,
Mangaldeep has two offerings, Pratiti and Sarvatra and is
specially hand rolled by Cottage Industries, Sri Aurobindo
Ashram, Pondicherry.

Personal care

ITC forayed into the Personal Care business in July 2005. In the
short period since its entry, ITC has already launched an array
of brands, each of which offers a unique and superior value
proposition to discerning consumers. Anchored on extensive
consumer research and product development, ITC's personal
care portfolio brings world-class products with clearly
differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills',

'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and
'Superia' brands has received encouraging consumer response
and is being progressively extended nationally.
ITC's state-of-the-art manufacturing facility meets stringent
requirements of hygiene and benchmarked manufacturing practices.
Contemporary technology and the latest manufacturing processes have
combined to produce distinctly superior products which rank high on
quality and consumer appeal.

Hotels: -
ITC entered into hotels field in 1975. He is giving best hospitality
services in some field. ITC have 46 hotels across 42 destination all
over India.

C. Packaging: -

ITC also producing packaging items like-

I. Flip top boxes.
II. Car board outers.
III. Shells and slides.
IV. Soft cup and strap labels
V. Bundle wraps
VI. Flap boxes
VII. Inner frames
VIII. Coupon inserts & Variety
IX. Folding crotons

D. Paper Board & Specialty paper: -

ITC has now integrates sits paperboard & specialty paper business into
its newly created (PSPD), to how new strategic & operational synergies.
The division also produced quality-

(a). Printing & Writing papers

(b). Eco- friendly papers
(c). Photo copier papers.
E. Information Technology (IT): - ITC has recently spun off its 20
year old information system division into a wholly owned subsidiary
to aggressively pursue growth opportunities in this sector
F. Life style retelling: - ITC also manufacturing ready made
garments range of international quality of relaxed wear under the
brand name “wills sport”. It have 48 retail out across 38 cites in the
country. Recently he also lunched another brand name “john players”
offers complete range of contemn porary men’s wear- like shirts,
Trousers, t-shirts & denims. It also lunches in Nov.

MARKETING STRATEGY USED BY ITC

ITC started an earnest exercise by creating a new brand image

and corporate philosophy by investing in new business
categories like personal care, premium apparel, rural business
(e- Choupal) and foods. All along using its famed distribution
strengths built through its successful past businesses like
cigarettes, paperboards and packaging, hotels and agri
business, to create synergies across its verticals and help prop
up its new businesses, like personal care and foods. ITC has a
well thought-out strategic approach. Rather than acquiring
weaker brands to get into these new segments inorganically, it
created a range of new personal care and branded apparel
brands.
The first step in this well-planned strategy was the launch of
Wills Lifestyle, the premium branded apparel business in
2002.
ITC then moved on to take the competition head on in the
FMCG domain, through ITC Foods in August 2001, and
personal care business, which is the focal point of this story, in
2005. It has created good impact with its well etched-out
Personal Care Brands. Under this category, brands like
Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the
Superia were designed to take care of various sets of consumer
segments.

But behind this launch was five years of intensive on ground

research of market conditions and consumer expectations.
Over one lakh consumers were surveyed across the country to
test various prototypes. Acceptance benchmark was kept as
high as 90 percent for the final products. ITC called this
exercise as '3E’ approach —explore, establish and execute.
As an adage goes 'if you have to win a race, you have to
clearly target the No 1', ITC too aimed the No 1 which
happened to be the formidable HUL (which still reigns over 50
percent of the FMCG market). And ITC's target was HUL and
P&G only. ITC roped in its tobacco business veteran Sandeep
Kaul to spearhead the personal care launch; it also sought help
from product formulation and branding experts in Europe and
America to formulate the fragrance, aesthetics and packaging.
Many of the brands have also been developed at its R&D centre.
The results are there for everyone to see. In less than four
years, ITC has been able to create brand awareness and
consumer acceptance for its five product lines Essenza Di
Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia—
each targeted at the needs, aspirations and usage behaviour of
different consumer segments. Kaul informs that the strategy
for designing personal care is that everyone is a potential
consumer.
Distribution system at ITC

The process of passing down each passing the product down

the chain to the next organization through Chain of
intermediaries, before it finally reaches the consumer or
end-user is known as the 'distribution chain' or the
'channel.'

A number of alternate 'channels' of distribution may be

available:

 Distributor, who sells to retailers,

 Dealer Or wholesaler, who sells to end customers
 Advertisement typically used for consumption goods

ITC follows:

CHANNEL WISE DISTRIBUTION

 Here the total product is divided into different channels
like, Health
care product, Personal care products, Home products & etc.

BEAT WISE DISTRIBUTION

 Here total market is divided into different areas where
the products are served to all the outlets exist in that
area.

ITC supply chain consists of diverse categories with different

priorities
• More than 1000+ SKUs
• Buying Value $68 MM
• Warehousing space of more than 3.5m SFT around 55+
locations
• Products manufactured at 45+ plants
• More than 650 trucks moved every day
• Direct distribution from factories to Distributors.
Indirect movement through RDCs
• Combination of Rail/Road/Sea movement within the country
depending on the product type.
(Target is Safer, Faster, cost effective)

ITC A RESPONSIBLE CITIZEN

ITC is a responsible corporate citizen: -

ITC is doing so many activities for the welfare of society and
darks as a responsible corporate leader without any gap. Some
of its major societal activation for the welfare of different
section of society is as follows-

a. Environment, health & safety (EHS)

b. Reaching out to society
c. Preserving national heritage.
d. Supporting sustainable development

a. Envoirment, health & Safety (EHS): - As a responsible

corporate citizen, ITC accords the highest priority to
environment, occupational health, and safety. It is committed to
protecting the environment in which it operates. It is equally
committed to ensuring very high standard of safety at the work
place.
It is a relegations of ITC” high EHS standards that lit has
been the recipient of several
National and international awards- such as-

ISO 14000
Sword of honour
Royal society of prevention of accidents awards.
National safety awards.
The corporate Environment award.
The golden peacock environment management award.
Excellence in pollution control management.
Prashanna patra award.
National Award for excellence in energy conservation.

b. Reaching out to society: - As a responsible corporate

citizen, ITC promotes art, culture and
 education. Besides working for the protection and
enrichment of the environment and over all social
development.
Community development.
Education.
Protecting the environment.

c. Preserving National Heritage: - As a socially responsible

corporate citizen, ITC
Endeavors to creates value for the Indian society in multiple
ways, one of them being
Preservation of India” rich culture heritage ITC has made
significant contribution to the
Promotion of Indian classical music, theatre, are and cuisine

GRADES FOR MANAGERS

 Senior Managers. (Managers)
 Middleman Managers.(Asst. Managers)
 Junior Managers. (Executives)
GRADES FOR WORKERS
 Unskilled Workers.
 Semi Skilled Workers.
 Skilled Workers.
 Highly Skilled Workers.
PROJECT REPORT ON HR
PRACTICES AT ITC LTD.

PROJECT REPORT SUBMITTED AT

GRAPHIC ERA UNIVERSITY

SUBMITTED BY
SONAL SRIVASTAVA
 INTRODUCTION

My research report is entitled “A study of HR Practices in ITC”. Firstly I

would like to discuss about HR Practices.
What are HR Practices?

HR Practices are those practices which are been done by the

organization for having optimum utilization of human resource of the
organization. These practices can be explained as follows:

 Recruitment & Selection

 Training & Development
 Performance Appraisal System
 Evaluation System
 Feed Back Mechanism
 Rewards to Employees
 Work Remuneration of the employees

 Increment practices
 INTRODUCTION OF HRM

Human resource management is the planning , organizing, directing,

and controlling of the procurement, development, compensation,
integration, maintenance and separation of human resources to the end
that individual, organizational, and social objective are accomplished.

FEATURES OF HRM
 Increased competition
 Emphasis on quality in staff, goods/services
 Flexibility in operations
 Willingness to adopt to changing market needs
 Global Market

OBJECTIVES OF HRM

 Integration of HRM policy with business goals/objectives

 Attainment of organizational objectives through human capital
 Creation of flexible work hours/function
 Creation of a flexible environment to be responsive to market
ambience, as per the need of the dizzily fast packed and changing
environment.
  Integration of people related issues with business issues, while
bringing people related issues to the fore and advocating primacy
of business needs.

MEANING & DEFINITION

“HRM is a management function that helps manager’s recruit, select,
train and develops members for an organization obviously HRM is
concerned with peoples dimension in organizations”

HRM: - It is also a management function concerned with hiring

motivating and maintaining people in an organization.

It is a series of integrated decision that from the employment

relationship; their quality contributes to the ability of the organization
and the employees to achieve their objective. Human resource
management is concerned with the people dimension in management.
since every organization is make up of people, acquiring their services,
developing their skill, motivating them to higher level of performance
and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives.
INTRODUCTION OF RECRUITMENT
The human resources are the most important assets of organization.
The success or failure of an organization is largely dependent on the
caliber of the people working therein. Without positive and creative
contribution from people, organization can’t progress and prosper. In
order to achieve the goals and perform the activities of an organization,
therefore we need to recruit people with requisite, skills, qualification
and experience. While doing so we have to keep the present as well as
future requirements of the organization in mind.

OBJECTIVE

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:
This policy shall apply to all PERMANENT management position in the
company including the workmen.

IDENTIFICATION OF VACANT POSITIONS

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.

HR PLANNING

HRP is the process of forecasting an organization’s future

demand for and supply of, the right type of people in the right number. It
is only after this that the HRM department can initiate the recruitment
and selection process. HRP is the sub-system in the total organizational
planning. Organizational planning includes managerial activities that set
the company’s objective. HRP facilitates the realization of the company’s
objectives by providing the right type and right number of personnel. HRP
then is like materials planning that estimate the type and quality of the
materials and supplies needed to facilitate the manufacturing activities of
the organization. HRP is variously called manpower planning, personnel
planning or employment planning.

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 mot available internally. Other sources
may include the following:
  internal data bank
 local employment exchange
 advertisement through newspaper
 Placement agencies.

Methods Of Recruitment
The following are the most commonly used method of recruiting people.
1. Internal Method
2. Direct Method
3. Indirect Method

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.

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.

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
1. 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.

2. TEST:
 Depending on the requirement of the job if required,
management may conduct
written/aptitude/psychometric/physical or any other
test as deem fit.
 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.

3. INTERVIEW:
 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.

RESEARCH METHODOLOGY
RESEARCH FORMULATION

The research to be conducted can be formulated as:-

“A detail study of the HR PRACTICES followed by ITC”

RESEARCH OBJECTIVES

1. To study the HR PRACTICES in ITC.

2. To know the recruitment & selection procedures adopted

in this company.

3. To improve training and development programs used in

the company.

4. To know how the performance of the employees is being

appraised.

5. To provide better employee welfare.

6. To increase labour productivity.

RESEARCH DESIGN

Descriptive Research has been used in order to conduct the study.

DATA COLLECTION METHOD

I took the help of primary and secondary data to achieve the objective of
my project, which include:-

Primary Data

 Observation
 Questionnaire

Secondary Data

 Websites
 Transcripts of Books
 Journals
 Handouts

LIMITATAION OF THE STUDY

1. The problem discussed was more is technical terms, thus was

difficult to comprehend.

2. Views of only few members could be included because of time

limitation.

Analysis And Data Interpretation

Q1. How long you are working in the organization ?

Q2. what are the various sources of recruitment in your

Organization?
Q3. Are you satisfied with the recruitment process of your company ?

Q4. Are you satisfied with your organization salary increment

Policy ?
Q5. Are you satisfied with the training procedure given in the
Organization ?

Q6. Are you getting regular training in your company ?

Q7. What methods is used for the performance appraisal system in
your organization?

Q8. Are you satisfied with your promotion activities in your

Organization?
Q9. Does the present performance appraisal system meet your
Career advancement?

10.Are you comfortable with the working environment?

FINDINGS

SWOT OF ITC
Strengths

ITC leveraged it traditional businesses to develop new brands for new

segments. ITC is a diversified company trading in a number of business
sectors including cigarettes, hotels, paper, agriculture, packaged foods
and confectionary, branded apparel, personal care, greetings cards,
Information Technology, safety matches, incense sticks and stationery.

Weaknesses

To fund its cash guzzling FMCG start-up, the company is still dependant
upon its tobacco revenues. Cigarettes account for 47 per cent of the
company's turnover, and that in itself is responsible for 80% of its
profits. So there is an argument that ITC's move into FMCG (Fast Moving
Consumer Goods) is being subsidised by its tobacco operations. Its Gold
Flake tobacco brand is the largest FMCG brand in India - and this single
brand alone holds 70% of the tobacco market. Unrelated diversification
is also a major weakness of ITC.

Opportunities

Core brands such as Aashirwad, Mint-o, Bingo! And Sun Feast (and
others) can be developed using strategies of market development,
product development and marketing penetration.ITC is moving into new
and emerging sectors including Information Technology, supporting
business solutions.

e-Choupal is a well thought of initiative that could be used in other

sectors in many other parts of the world. It is also an ambitious project
that has a goal of reaching 10 million farmers in 100,000 villages
Per capita consumption of personal care products in India is the lowest
in the world offering an opportunity for ITC's soaps, shampoos and
fragrances under their Wills brand.

Threats

The obvious threat is from competition, both domestic and

international. ITC's opportunities are likely to be opportunities for other
companies as well. Therefore the dynamic of competition will alter in
the medium-term. Then ITC will need to decide whether being a
diversified conglomerate is the most competitive strategic formation for
a secure future.
CONCLUSION
There are the following conclusions come up after the research of the
project by filling the questionnaire:

 The working environment of the organization is excellent this is

reason why employees are doing the work their and they are
stable there.

 Generally organization appointed the employees through the

recommendations that is references even though other sources
are there.

 The employees are satisfied with the recruitment process of the

organization.

 Most of the employees consider that the salary increment policy is

good.

 Generally ranking method is used in the organization for the

performance appraisal system and with the promotion activities.

 As they accept that the working environment is really good this

shows thye are satisfied and the satisfaction of the employees of
the organization is very necessary.

 And at last I would like to say that satisfied employees contribute

more to the organization this is the reason why ITC is growing
faster.
 Recommendations and suggestions
There are the following suggestions being an HR student I would like to
give the organization:

 Organization should keep the eyes on the recruitment process

they should recruit the employees from outside as well means
from where they get the employees they should recruit them.

 As the organization is growing faster they should emphasis on the

training programs even though their training programs are quite
good.

 Organization should regularly give the increment on the salary so

that who are not satisfied they would become also satisfied.

 Organization should analyze the training methods and should

adopt those methods which are good for the employees and
promotion activities should be good so that employees are
satisfied as we know this is the basic requirement of the success.
APPENDICES
A questionnaire was designed to study the “Evaluation of the HR
PRACTICES Followed by ITC”. It was filled by the employees of ITC

1) HR PRACTICES in ITC is transparent

2) Man power planning forms the basis for recruitment
3) ITC is very clear about the attributes, competencies,
attitudes and values they want in next employee.

4) Complete job description and specification is being laid down

in an advance for recruitment.
5) ITC is able to attract best applicants.
6) As a policy the recruitment at higher level should be from
internal source and of lower level position from external
sources.
7) A strict selection procedure is being followed that is clear to
all employees.
8) Psychometric tests are being conducted for personality
evaluation of candidates during selection procedure.
9) Selected employee is made clear of his probation period
on his joining in which period his services can be
suspended in case of unfit performance.
10) You are satisfied with the preference being given to internal
candidate at the time of selection.
11)The company’s performance with its present workforce is
excellent.
12) The process of selection is completely free from all kind of
personal biases.
 REFRENCES

 Human Resource Management by Gary Dessler

 Human Resource Development by S.R. Kandula

 Human Resource Management by S.V Gangkar

 www.google.com

 www.itcportal.com