SUMMER TRANING REPORT

ON

HR POLICIES IN HERO MOTOR’S

Submitted in the Partial Fulfillment of the Requirements for the
award of the Degree
Bachelor of Business Administration (BBA)

(2017-2020)
Submitted to Submitted By
Mrs. Meenakshi Vashu dev
Assistant Professor BBA 5th Semester
(BBA DEPT.)

PT. NEKIRAM SHARMA GOVT. COLLEGE

ROHTAK (124001)

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 DECLARATION

I hereby declare that the project work entitled “HR Policies In HERO motor’s”
submitted to Hero Motors is a record of an original work done by me under the
guidance of Mr. Diplesh Kumar, General Manager of and this project is submitted in
the partial fulfillment of the requirements of the award of the degree of Bachelor’s of
Business Administration in Marketing and Finance. The results embodied in this thesis
have not been submitted to any other university or Institute for the any award of degree
or diploma.

Vashu dev

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 ACKNOWLEDGEMENT

Life of human being is full of interactions. No one is self-sufficient by himself/herself

whenever anyone is doing concerned is need and one less specially obliged towards them. I
can’t forget acknowledging them in few words as without the guidance & co-ordination of them
in my project report would not have been possible. A large number of individual contributed
to this project. I am thankful to all of them for their help and encouragement. First of all I owe
my heartfelt gratitude to Mr. Aman Hooda, General Manager of Hero Motors Branch for
giving me an opportunity to work on this project.
I would like to thanks to Mr. Darvesh, Assistant Manager of LG. Company Branch for his
guidance, Inspiration and suggestions which helped me in my project.
I owe my heartfelt gratitude to my guide professor Ms. Meenakshi for her noble guidance
throughout the completion of the project.
I extend to my gratitude to PT. NEKI RAM SHARMA GOVT. COLLEGE., ROHTAK for
giving me this opportunity.
I must also thank the management of Hero Motors to provide excellent opportunity and
environment to be able to pull my project through. Corporation of the staff is also gratefully
acknowledged.
Last but not least, also give my sincere thanks to all the people to directly & indirectly have
help and encourage me in finding the way to us collecting the requisite information and
completing the project effectively and timely

Vashu dev
EXECUTIVE SUMMARY
Hero Motocorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer
based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles
of India and Honda of Japan. The company is the largest two wheeler manufacturer in India.
The 2007 Forbes 350 Most Respected companies list has Hero Honda Motors ranked at 108.
In 2016, When Honda decided to move out of the joint venture, Hero Group bought the shares
held by Honda. Subsequently, in August 2013 the company was renamed Hero MotoCorp with
a new corporate identity. On 4th June 2014, Hero Motocorp approved a proposal to merge the

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investment arm of its parent-Hero Investment Pvt. Ltd. into the automaker. The decision comes
after 18 months of its split from Honda Motor. Termination of Honda joint venture Main article:
Hero Honda split In December 2015, the Board of Directors of the Hero Honda Group have
decided to terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.
Under the joint venture Hero Group could not export to international markets (except Sri
Lanka) and the termination would mean that Hero Group can now export. Since the beginning,
the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So
there are concerns that the Hero Group might not be able to sustain the performance of the Joint
Venture alone. Hero MotoCorp The new brand identity and logo, Hero MotoCorp, was
developed by the London firm Wolff Olin’s . The logo was revealed on 9 August 2011 in
London, the day before the third test match between England and India. Hero MotoCorp can
now export to Latin America, Africa and West Asia. Hero is free to use any vendors for its
components instead of just Honda-approved vendors. Company performance Page 8 Mumbai
University Kohinoor Business School

LIST OF CONTENTS

CONTENT PAGE NO.

Topic

Declaration
Acknowledgement
Executive Summary

1. Introduction 6-19

Company Profile

Technology

Financial Management

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2. Review of Literature 20-25

3. Objective of the study 26-27

4. Research Methodology 28-30

5. Data analysis and interpretation 31-41

6. Limitation of the study 42-43

7. Conclusion 44-45

8. Bibliography and Website 46-47

9. Questionnaire 48-50

CHAPTER – 1
INTRODUCTION

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 CHAPTER – 1 INTRODUCTION

COMPANY PROFILE

HR policy is a predetermined established guideline towards the attainment of accepted

goals and objectives. Such guidelines facilitate properly designed efforts to accomplish the
strategic intent. Policy is not a strategy or tactic. Strategy is a purposed course of action to exert
a far reaching impact on the ability of the enterprise to attain its goals. Strategy relates to means.
Policy can be differentiated from objectives, programmed and procedures. Policy relates to the
fundamental framework of principles and rules which are used as reference information for
decision-making and provide a constant pattern of decisions and structured thought processes.
Objectives are specific goals or aims, preferably in quantitative terms and can be considered
something to accomplish, while a policy is a guide to accomplish it.
Again policy is different from procedure defines the manager or way of accomplishing
something, i.e., it is the process and method. While policy forms part of a framework of general
principles, a procedural necessarily indicates how to do something and direct employees
towards the accomplishment of goals. Policies are also differentiated from programmed.
Programmed are developed on the basis on the policies with a view to implementing them and
accordingly programmed involved one additional step beyond policies to simplify the
decisions. The execution of programmed leads to specific actions including practices and
procedures.

SIGNIFICANCE OF STUDY -

Human resource policies are arises basically from the fact that in order to achieve the
human resource and overall objectives of the organization, a corporate thinking is required
which will be guide decision making at operating level. In this study I have also analyse that
how, Hero Honda Company is made their HR policy for operating their business in best way.

Sound Human Resource Policies provide the following benefits:

(1) Clear Thinking:

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 The actual process of writing down a human resource policy helps to clarify
management thinking. The management is required to examine its basic convictions and give
full consideration to practices in other organizations.

(2) Uniformity and consistency of administration:

Well established policies ensure uniform and consistent treatment of all employees
through out the organization. Such policies help to minimize discrimination and favoritism.

(3) Continuity and stability:

Written policies are a means of transmitting the company’s heritage from one
generation of executives to another. The accumulated wisdom in a company is lost when its
top management team retires, dies or resigns.

(4) Sense of security:

Written human resource policies provide advance information and predictable

decisions on human resource matters. Polices set patterns of behavior and permit employees to
work more confidently.

(5) Training:

Written human resource policies can be used as guide for orientation and training of
new employees.

(6) Control:

Human resource policies serve as standards or yardsticks for evaluating

effectiveness of human resource management. Policies facilitate management by exception.

(7) Prompt decision making:

Carefully defined human resource policies serve as guide for making-decisions on

routine and repetitive issues. They prevent the wastage of time and energy involved in repeated
analysis for solving problems of a similar nature.

HERO HONDA – AN INTODUCTION

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 Hero Honda Motors Limited, based in Delhi, India, is the world's third largest
manufacturer of motorcycles after Honda and Yamaha. Hero Honda is a joint venture thatbegan
in 1984 between the Hero Group of India and Honda of Japan. It has been the world's biggest
manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million
motorbikes in a single year.

Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in
Dharuhera and Gurgaon, both in India. Third plant at Haridwar, Uttaranchal has also started
production by April, 2008. It will have production facilities such as Lean Manufacturing
concept, more flexible lines & stream line material flow, within & proximity (planning to set
vendors in nearby locations constituting HHML Park) to achieve just-in-time manufacturing.
It specializes in dual use motorcycles that are low powered but very fuel efficient.

History of the Company:

The joint venture between India's Hero Group and Honda Motor Company, Japan has
not only created the world's single largest two wheeler company but also one of the most
successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was
possible to drive a vehicle without polluting the roads. The company introduced new generation
motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it
- Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero
Honda sold millions of bikes purely on the commitment of increased mileage.

Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost
as many as the number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every
second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India
buys Hero Honda's top -selling motorcycle – Splendor. This festive season, the company sold
half a million two wheelers in a single month—a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from its three globally benchmarked
manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and

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the third state of the art manufacturing facility was inaugurated at Haridwar, Uttrakhand in
April this year. These plants together are capable of producing out 4.4 million units per year.

Hero Honda's extensive sales and service network now spans over 3000 customer
touch points. These comprise a mix of dealerships, service and spare points, spare parts
stockiest and authorized representatives of dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM initiative - Hero
Honda Passport Program, one of the largest programs of this kind in the world, has over 3
million members on its roster. The program has not only helped Hero Honda understand its
customers and deliver value at different price points, but has also created a loyal community of
brand ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market,
Hero Honda is constantly working towards consolidating its position in the market place.
The company believes that changing demographic profile of India, increasing urbanization
and the empowerment of rural India will add millions of new families to the economic
mainstream. This would provide the growth ballast that would sustain Hero Honda in the
years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly
points out, "We pioneered India's motorcycle industry, and it's our responsibility now
to take the industry to the next level. We'll do all it takes to reach the re.''

Profile:

Hero Honda Motors is not only India's number one bike maker, it's world number
one too. In 2004, Hero Honda sold a staggering 2,528,699 motorcycles, retaining its position
of 'world's number one' two-wheeler company for the fourth consecutive year. In India, with
over five million customers, Hero Honda's products command a market share of 48 percent,
making it a veritable giant in the industry. Balasubramanian spoke with VOICE&DATA on
a wide range of telecom and networking related issues

Mission:
Hero Honda’s mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price

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aspirations of its customers. At the same time maintain the highest standards of ethics and social
responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.
Vision:
Lead and Facilitate continuous change towards organizational excellence ; create a
learning and vibrant organisation with high sense of pride amongst its members.

Hero Honda Motorcycle Ltd.:

Type Public company BSE:HEROHONDA MOTOR

Founded January 19, 1984 in Gurgaon, Haryana, India
Headquarters Haryana, India
Key people Om Prakash Munjal, Founder
Mr. Brijmohan Lall Munjal, Chairman
Mr. Toshiaki Nakagawa, Joint Managing
Director
Mr. Pawan Munjal, Managing Director
Industry Automotive
Products Motorcycles, Scooters
Revenue U$ 2.8 billion
Website http://www.herohonda.com/site/home/home.asp

HR Initiatives:

 Prepare Strategic Business Plan-2000-2003; To achieve the Vision & Goal

 Improve the performance Appraisal system - it’s process, skill & usage
 Introduce a Potential Appraisal System
 Improvements in internal & external Training & it’s effective utilisation. Training
need identification
 Systematic career planning ; Job Rotation ; Empowerment; Job enrichment
 Periodic communication meeting at various level; Roll out of Vision
 Raise cost consciousness for cost control and reduction

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  Exposure on Brand Strategy to all non- marketing staff
 Retention of Talent
Hero Honda's Mandate:
Hero Honda is a world leader because of its excellent manpower, proven
management, extensive dealer network, efficient supply chain and world-class products with
cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment
are manifested in the highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status.

Men of Steel:

The success of the Hero Group lies in the determination and foresight of the Munjal
brothers, who shared their vision with their workers and led the Group to a position where its
name has become synonymous with top-quality two wheelers.

The flame kindled by the Munjal brothers in 1956 with the flagship company Hero
Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal continue to
carry the torch and are actively involved in the day-to-day operations of the Hero Group.

The saga is being continued with the same zeal by the second and third generations
of the family and by the large working force of the Hero Group. The spirit of enterprise which
dominates the progress of the Group is characteristic of the land where it all began - the City
of Ludhiana, in Punjab - home to some of lndia's finest workers a nd entrepreneurs.

The Hero Group is a thriving example of three generations of a family working and
striving together to ensure quality, satisfaction and extensive growth.

(a) Hero Honda: Is It Honda That Made It A Hero?

Starting as a bicycle company, it set up a 50/50 joint venture, set up in 1984 with Honda
Japan, to manufacture and sell motorcycles in India. Honda brought in the technological know-
how, and Hero the Indiap resence, and the local manufacturing ability.
Hero Honda Motors captured the market for motorcycles in India, by offering an affordable
4stroke, 100 CC motorcycle, that was extremely fuel efficient.

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 They also established dealerships al over the country – even rural areas – . The strategy
of Hero Honda Motors was to capture the market by offering a superior product at an affordable
price, with excellent customerservice.

The strategy has been successful to date and Hero Honda Motors (India) Ltd. is the
dominant market leader with over 50% of market share, ahead of closest competitors Bajaj
(Kawasaki JV) and TVS-Suzuki.
Recently new challenges have come up: in 1999, Honda has set up a 100% owned
subsidiary, which produces scooters, and represents a direct competitive threat. New entrants
have entered the market, offering cheap motorcycles from China. The market is showing signs
of maturing, with a reduction in business growth.
The company's response is a defend and fortify strategy: Hero has renewed the
technology JV with Honda, and have widened their offering a wider share of products.
They have integrated vertically, reducing cost drivers in the value chain. At the same toiken,
they have increased service levels, customer loyalty programs, and have started addressing
niche-markets ("Just 4her")
The next step for the company, is to retain and expand shareholder value by either

expanding to new geographical areas and/or diversify in new businesses Environment Policy:

We at Hero Honda are committed to demonstrate excellence in our environmental

performance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:

• Integrate environmental attributes and cleaner production in all our business processes
and practices with specific consideration to substitution of hazardous chemicals, where
viable and strengthen the greening of supply chain.
• Continue product innovations to improve environmental compatibility.
• Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
• Institutionalise resource conservation, in particular, in the areas of oil, water, electrical
energy, paints and chemicals.

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• Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.

Quality Policy:

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations through:

• Innovation in products, processes and services.

• Continuous improvement in our total quality management systems.
• Teamwork and responsibility.

Safety Policy:

Hero Honda is committed to safety and health of its employees and other persons who may
be affected by its operations. We believe that the safe work practices lead to better business
performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

• Integrating safety and health matters in all our activities.

• Ensuring compliance with all applicable legislative requirements.
• Empowering employees to ensure safety in their respective work places.
• Promoting safety and health awareness amongst employees, suppliers and contractors.
• Continuous improvements in safety performance through precautions besides
participation and training of employees.

Manufacturers with international experience manage to establish new sites abroad much faster
and more cost-efficiently than companies with a relatively limited global footprint. Analysis of
our interviewees’ strategies and practices revealed a number of clear success factors as well as
traps to avoid.
Many relocation attempts fail because firms overestimate their capabilities. Companies need to
carefully align the prerequisites and complexity of the undertaking with their skills and

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resources. If a mismatch is apparent, they should either reduce the project complexity or
provide additional experienced personnel.
The actual site chosen can heavily impact the project’s economic viability, as location-related
factors may differ significantly within regions. Local partners’ contacts with public authorities,
customers, and suppliers can also make a huge difference when setting up in developing
countries.
Posting expatriates to a new location is usually much more cost-intensive than using local
skilled workers and executives. Their know-how and companywide connections are
indispensable, however, especially in the initial phase. The role of human resources
management (HR) is vital in dovetailing foreign postings with swift skill building for locals to
take over.
Companies can achieve rapid ramp-up of their targeted capacity and quality by applying best
practices that are readily transferable from one industry sector to another. Global leaders plan
relocation with painstaking foresight to ensure high delivery reliability and capacity utilization
even during the move. A phased start-up with the sequential introduction of uncoupled
manufacturing processes, new suppliers, and products helps to stabilize production. This
staggered approach also limits the risk of downtime from technical faults.

Milestones:

Hero’s success saga contains an element of spirit and enterprise; of achievement

through grit and determination, coupled with vision and meticulous planning.

1956 Hero Cycles Limited is established.

1961 Rockman Cycles Industries Limited established, which is today the

largest manufacturer of bicycle chains and hubs.

1963 It pioneered bicycle exports from India – a foray into the international market.

1985 Munjal Showa Limited established to manufacture shock absorbers

and struts and is today among the top two shock absorber
manufacturing companies in India.

1985 The 100 cc Hero Honda Motorcycle arrived and by 1988 was the No.
1 among all motorcycles in India.

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 1986 Hero Cycles Limited entered the Guinness Book of
Records as the largest bicycle manufacturer in the World.

1987 Hero Motors, a division of Majestic Auto Limited set up in

collaboration with Steyr Daimler Puch of Austria.

1987 Gujarat Cycles Limited, now known as Munjal Auto Industries

Limited was established to manufacture and export state-
of-the-art bicycles and allied products in its fully
automated plant at Waghodia.

1987 Sunbeam Auto Limited, earlier a unit of Highway Cycles

Limited, established as an ancillary to Hero Honda. It is the largest
die casting plant in India.

1995 Hero Corporate Services Limited as the service segment

for the Hero Group Companies, ancillaries, suppliers,
dealers and other associates.

1996 - Hero Winner, a large-wheeled scooter was introduced by

Hero Motors Limited with a choice of 50 cc and 75 cc
engines.

Hero Group celebrates Golden Jubilee year since

2016 inception.It was commemorated by sales of over 15 million
motorcycles & over 100 million bicycles.

Today, Hero Group comprises of 20 companies, 300 ancillary suppliers, deep market
penetration with over 5,000 outlets, 23,000 + employee and has a turnover of US$ 3.20 billion
(FY 2006).

FOCUS OF THE PROBLEM -

Company has not shown good performance in the previous 4 quarters and this is one
of the reasons why the stock has not performed well in the recent past. One of the major

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reasons for bad performance is that the company is facing tough competition from other
competitors. One of the other reasons could also be due to bad monsoon season this past year.

Company's age-old model - Splendor, which is ranked as an Executive segment,

contributes almost 50% of company's sales. Splendor is facing tough competition against TVS
Victor and Bajaj Capital, which are competitor's equivalent models in the same segment.

Company came up with a new model - Passion that did well in the initial quarter but
could not sustain the competition. Even thereafter, they came up with CBZ model targeting the
Premium Segment customer base. However, company was losing its clientele to Bajaj Pulsar
and TVS Fiero, which are competitor's equivalent models in the Premium Segment.

Given the circumstances, the only thing that could bring a jump in the stock price is
launching a new product and gaining some market share due to the new launches in the market.
There are some new launches lined up in the companies near future. First launch is targeted for
end of this month in the Economy Segment and the next launch is aimed in May, which will
be in the Premium Segment. Company plans on coming up with new innovations in the
upcoming quarter.

Market share of the company has dropped approximately by 400 basis points to 43%
on YOY basis.

Recently Honda Motors Corp., Japan, has renewed its technical agreement with Hero
Honda, which was supposed to expire in October-2004. One would think this is good for the
company. However, renewing this agreement has raised more issues for the company rather
than resolving it. As per the new contract, both partners are free to enter each other's segment.

This agreement will give Honda a much-needed breakthrough in the Indian motorcycle
market. However, keeping Honda's pricing strategy in mind in the angered scooter segment;
Honda would not only enter Hero Honda's bread and butter market (100cc-125cc-motorcycle
segment) but would also price its products aggressively which might not be quite advisable for
the Indian motorcycle market. This scenario could lead to high possibility of conflict of
interests between the partners. This is not advantageous for Hero Honda and could result them
in a big loss. On basis of weak product portfolio and in-house R&D, which is dependant on
Honda Corp., this could lead to downside in Volume and result in losing market share.

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 At current market price of Rs.195, the stock is trading at a P/E of 6.5x's. On basis of
weak fundamentals and Hondas entry in the Indian two wheeler industries I recommend a sell
on the stock.

ORGANISATION OF THE STUDY -

The purpose of this research paper is to develop a framework for understanding the
importance of flexibility in organizations and how it helps in moving towards business
excellence. An attempt has been made to look at flexibility as a core component of all processes,
be it operational, leadership, strategy planning and implementation or any other process. The
paper also looks at the flexibility issues in the Human resource function in select Indian
organizations, which have adopted different business excellence model, by analyzing the
primary data from five Indian companies.
With increasing globalization, firms are entering a dynamic world of international
business that is marked by liberalization of economic policies of a large number of emerging
economies like India. To face the challenge of increasing competition that has resulted from
liberalization, Indian organizations have initiated adoption of innovative human resource
management practices both critically and constructively to foster creativity and innovation
amongst employees. With the help of eleven in-depth case studies this article tries to understand
how innovative HRM Indian firms to brace competition in the post liberalizations are adopting
practices.
Hero Honda is India's largest two-wheeler manufacturer. The company has a
history of rewarding shareholders handsomely. The case discusses Hero Honda''s dividend
policy and how it is linked with other aspects of the company's financial strategy.
The Indian two-wheeler industry had seen remarkable growth rates from 2000, due
to various factors like fall in interest rates, availability of finance and affordable prices relative
to the growing purchasing power. Despite the impressive growth rate of the last few years,
twowheeler penetration still remained low in the country. Analysts believed, increasing
urbanization, expanding cities, lack of other modes of mobility and favourable demographics
would support double digit growth in the coming decade.

Hero Honda has revved up its server architecture to provide dedicated platforms for
storage, mail, backup, and database management. by Soutiman Das GuptaHero Honda Motors
Limited is the world’s largest two wheeler company. And to keep pace with the tremendous

17
growth and maintain the competitive edge, it has a network spanning 700 nodes. This includes
the HO (Head Office), two manufacturing plants, and 20 marketing offices nationwide.

Besides migrating from a slower performing network to a faster, almost-glitch-free network,

Hero Honda has also consolidated disparate applications that once ran on different
departmental servers by implementing SAP. It has also reworked its server architecture to
provide dedicated platforms for applications, storage, mail, backup, and database management.

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 CHAPTER – 2

REVIEW OF EXISTING LITERATURE &

CONCEPTUAL FOUNDATION

CHAPTER – 2

REVIEW OF EXISTING LITERATURE & CONCEPTUAL

FOUNDATION

Human Resources policies are the main base of the organization. Here, my project
report topic is also on HR policy. In my report I have tried to find out the working policy of the
organization that how much good way employees are performing their job according to goals
and objectives. To complete my project report, I took help the different existing literature. I
read many authors books and I find out that there is little bit difference between the views of
the authors. These Authors are Gupta C. B. (2007), Dessler Gary (Ninth Addition, 2005),
Bhattacharyya Kumar Dipak (second addition). And I als took help of Internet Surfing. On
Hero Honda site I too some metter related to HR poliy. In the Following Lines I am going to
tell what were the views of different authors on the Hr policies:

Definition:-

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 According to calhoon, “Human Resource polices constitute guides to actions. They
furnish the general standards bases on which decisions are reached. Their genesis lies in an
organization’s values, philosophy, concepts and principal”.

Types of Human Resource Policies:

Human Resource policies may be classified in several ways. On the basis of their
source, policies mat be classified into originated, appealed and imposed policies. On the basis
of their scope, policies can be general or specific. According to their form, policies may be
written or implied.

(1) Originated policies:

These policies are established formally by top management. Senior executives initiate
such policies to guide there policies. And in Hero Honda company, the top level management
is also makes this type of policy.

(2) Appealed policies:

These policies are formulated on requests of subordinates who want to
how to handle some situations. The need for such a policy arises because the particular case is
not covered by the earlier policies.

Objects or purpose of Human Resource policy:-

 Prepare Strategic Business Plan-2000-2003; To achieve the Vision & Goal

 Improve the performance Appraisal system - it’s process, skill & usage
 Introduce a Potential Appraisal System
 Improvements in internal & external Training & it’s effective utilisation. Training
need identification
 Systematic career planning ; Job Rotation ; Empowerment; Job enrichment
 Periodic communication meeting at various level; Roll out of Vision
 Raise cost consciousness for cost control and reduction
 Exposure on Brand Strategy to all non- marketing staff

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 Retention of Talent
HR Polices and Procedures -

Polices in the management of HR cover a wide variety of subjects. A comprehensive coverage

of policies embrace any action or decision, taken by either employees or management in
relation to the working environment, the rights and responsibilities of employees and
management, and the action of both the parties. Thus one policy may be a statement of
standards for employee attendance and another statement of management obligations in
grievance administration. One policy may explain conditions under which loans will be granted
whereas another may indicate conditions under which an employee is subjected to discharge.
Procedures prescribes the details for carrying out polices they spell out the specific rules and
regulations, the steps, time, place, and personal responsibly for implementing policies.
Procedures also clarify what is to be done in particular circumstances.

Some universal elements in HR policies are:

1. Recruitment and Placement
2. Training and Development,

1. Recruitment and Placement:-

Recruitment is the process of searching for perspective employees and stimulating
and encouraging them to apply for jobs in an organization. Recruitment needs are of three
types- planned and anticipated and unexpected.
Recruitment is a process or a series of activities rather than a single act or events.
The activities in this process are described under the next heading.
Recruitment is a linking activity as it brings together those with jobs and those
seeking jobs.Recruitment is a positive function as it seeks to develop a pool of eligible person
from which most suitable once can be selected.

Uses of Job analysis Information:

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 Job analysis information is the basis for several interrelated HR management
activities:

Job Analysis

Job Description

Recruitment Performance
Job Training
and selection Appraisal
Evaluation Requirement
decision

a. Job Analysis:
It is the Procedure for determining the dutirs and skill requirements of a job and the
kind of person who should be hired for it.

b. Job Description:
A list of a job’s duties, responsibilities, reporting relationships, working conditions,
and supervisory responsibilities- one product of a job analysis.

c. Job Specification:
It is the list of a job’s “human requirements”, that is the requisite education, skills, personality,
and so on- another product of a job analysis.

d. Recruitment and selection:

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 Job analysis provide information and and this information, in the form of job
descriptions and specifications, helps management decide what sort of people to recruit and
hire.
Labor Relation and Employee security:
After employees are hired and trained, it is important to motivate them to get the
desired efforts from them to achieve organizational objectives. While designing their
compensation package, at the outset, we try to meet their expectations suitably identifying their
extrinsic and intrinsic needs, with in the given policies and procedures of the organization. We
also create the good relations with the low level employee so that they can do work in better
way.

In Hero Group there is no organized labor union and family members of employees
find ready employment within Hero. The philosophy with regard to labor management is "Hero
is growing, grow with Hero." Hero workers receive a uniform allowance, as well as House
Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits include medical
check-ups not just for workers, but also for the immediate family members. For the majority
of the production workers, who are hired through contractors, these benefits are out of reach.
This and other problems lead to a strike and factory occupation by 4,000 temp workers in the
Gurgaon plant in spring 2006.

Employee safety and Health are important:

Safety and accident prevention concern is very important for an organization.
Organzation must be provide good equipment to the employees for their safety. And
organization must provide some medical services also.

Considerations in developing HR policies:-

Statements of policy constitute criteria for making decisions. They render
decisionmaking easier, mare routine. They permit decisions on problems without detailed
analysis and thus facilitate saving of precious time.
Policies provided a clear idea of what management and employees can expect.
Therefore, policies promote consistency and fairness of action under conditions that are similar

23
in character and eliminate any bias in employee related decisions. This way, policies help to
avoid confusion and misunderstanding.
Policies may originate from anywhere inside an organization or from external sources-
the community, state and national legislation, changes in the economy, and even international
forces, such as war time or defense conditions.
The approvals of new or changed HR policies ultimately come from top management.
However, the responsibility for administration rests with the line. An affective HR department
recommends policies and policy changes that it considers appropriate for the benefit of the
organization.

The formulating policies, the first consideration are the objective or purpose. Operationally, it
is also necessary to consider the economics (costs) and benefits in relation to the size and
complexity of the organization.
Because of an unfortunate tendency to think of policies as formulate that may arise
subsequently in administration. Imagination is required here, as well as knowledge of operating
problems.
Unions have had a tremendous impact on policy formulation. They seek certain
policies, they seek to alter management policies (e.g., in overtime payment); and they cause
concerns without unions to change policy as a defense against unions.

24
 Chapter - 3
OBJECTIVE OF STUDY
Chapter - 3

OBJECTIVE OF STUDY

• To device conceptual knowledge regarding HR Policy.

• To know various sources of HR policy in the company.
• To know employee knowledge regarding the policy of HR.
• To what extent the HR policy consistent with the business policy of the company.
• To consistent with the overall philosophy and objectives of the organization as well as
with labors laws and public policy.
• To consist that the policy is reasonable stable or long lasting.

25
 CHAPTER – 4
RESEARCH METHODOLOGY

26
 CHAPTER – 4 RESEARCH METHODOLOGY

When we talk of research methodology, we not only talk of the research methods but
also the comparison of the logic behind the methods, we used in this context of our research
study and explain why we are using a particular method or technique and why using the others.
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done systematically. In this, we study the
various steps that are generally adopted by researcher in studying his research problem along
with the logic behind them.
“The present study is based upon the case study method of research to investigate procedures
at micro level”.
As the study is analyzing probing in nature, thus, entirely based on the secondary
data gathered through the annual reports of the industry. Therefore it provides a historical
perspective of decisions.

Research -
Research refers to search for knowledge. Research is an original contribution to the
existing stock of knowledge making for its advancement. It is the pursuit of truth with the help
of study, observation, comparison and experiment. In short, the search for knowledge through
objective and systematic method of finding solution of the problem is research. The advance
learner’s dictionary of current English gives the meaning of research “a careful investigation
or inquiry especially through search for new facts in any branch of knowledge”.

Research Methods -
Research methods may be understood as those methods/techniques that are used for
conduction of research. All those methods which are used by the researcher during the course
of studying his research problem, are termed as research methods . Keeping in view, the
research methods can be put into following three groups:
 In the first group we include those methods which are concerned with the collection of data.
These methods will be used where the data already available are sufficient to arrive at the
required solution.

27
 The second group consists of those statistical techniques which are used to establish
relationships between the data and the unknown.
 The third group consists of those methods which are used to evaluate the accuracy of the
obtained results.

Collection of data -
There are several ways of collecting the appropriate data which differ considerably in context
of money, cost, time and other sources at the disposable of the researcher.
There are two types of data:

Primary data:
Primary data are those which are collected afresh and for the first time, and thus happen to be
original in character. In case of descriptive research, researcher performs survey whether
sample survey or census survey, thus we obtain primary data either through
• Observation
• Direct communication with respondent
• Personal interview

Secondary data:
Secondary data are those which have already been collected by someone else and have already
been passed through statistical process.

In this project report, both types of data have been used. Mainly, secondary data is used such
as annual reports of last two years of Grasim industries.

28
 CHAPTER – 5

DATA ANALYSIS & INTERPRETATION

CHAPTER – 5
DATA ANALYSIS & INTERPRETATION

Sample size – 80

1. Are you satisfied with the policies adopted by the Company?

29
 options Respondents Total Total
Percentage
Yes 50 80 62.5%

No 20 80 25%

Can’t Say 10 80 12.5%

90
80
70
60
yes
50
No
40
Can't say
30
20
10
0
Response total Percentage

2. According to you what is the most important factor for selection policy.

options Respondents Total Percentage

30
 Qualification 30 80 37.5%

Past 30 80 37.5%
experience

Interview 20 80 25%

90
80
70
60
qualification
50
past experience
40
interview
30
20
10
0

2. Which type of compensation is given by the company?

Option Respondents Total Percentage

Holiday 35 80 43.75%
Package

31
 Bonus 30 80 37.5%

Other’s 15 80 18.75%

90
80
70
60
holiday package
50
bonus
40
others
30
20
10
0

3. Are you satisfied the have policy of the company?

option Respondents Total Percentage

Yes 45 80 56.25%

No 20 80 25%

32
 Can’t say 15 80 18.75%

300

250

200 Series1
Series2
150
Series3
100 Series4

50

4. Which type of Performance Appraisal system is adopted by the company?

Option Respondents Total Percentage

MBO 30 80 37.5%

360 Degree 30 80 37.5%

Induction 20 80 25%

33
 90
80
70
60 Series1
Series2
50
Series3
40
Series4
30 Series5
20
10
0
1 2 3 4 5 6

6. What type of method adopted by your company for succession?

Options Respondents Total Percentage

Internal 50 80 62.5%
Promotion

34
 Direct 30 80 37.5%
Recruitment

90
80
70
60 Series1
50 Series2
40 Series3

30 Series4

20
10
0
1 2 3 4 5 6 7

7. What Promotion base is adopted by the company?

Option Respondents Total Percentage

Merit base 40 80 50%

Experience 40 80 50%
Base

35
 90
80
70
60
Series1
50
Series2
40
Series3
30
20
10
0

8. Which method is adopted by the company in Training Programmed?

option Respondents Total Percentage

Respondents

On the job 45 80 56.25%

Off the Job 25 80 31.25%

36
 Others 10 80 12.5%

90
80
70
60
on the job
50
off the job
40
others
30
20
10
0
respondent total percentage

9. Which type of social security you want from the company?

option Respondents Total Percentage

Gratuity 35 80 43.75%

Provident Fund 35 80 43.75%

Others 10 80 12.5%

37
 90
80
70
60 Series1
50 Series2
40 Series3
30 Series4
20
10
0

10. Are you want to other’s facility in your Company?

Option Respondents Total Percentage

Canteen 35 80 43.75%
Service
Medical 30 80 37.5%
Service
Others 15 80 18.75%

38
 90
80
70
60 Series1
50 Series2
40 Series3
30 Series4
20
10
0

Chapter - 6
LIMITATION OF THE SYUDY

Chapter - 6 LIMITATION OF THE SYUDY -

39
 Though I have put in my all efforts in an attempt to penetrate deep into the field of HR
policy and have received invaluable help from my project guide and all other people working
in the organization. Yet I will like to list some of my limitations under which the studies was
conducted:-

• Time was one of the major constraints that I have got very minimum time period for
preparing the project report.
• Even though the attitude of the Respondents was very good but some respondents are
found helpless and even sometimes they try to ignore certain questions.
• Respondents took not interest for fill up the questionnaire and they give not accurate
response.

40
 CHAPTER – 7

CONCLUSION & RECCOMENDATION

CHAPTER – 7

CONCLUSION & RECCOMENDATION

Main Findings:

 62.5% respondents are satisfied with the policies adopted by company, 25% are not and
12.5% can’t say.
 37.5% respondents say the selection policy is qualification, 37.5% say past experience and only
25% respondents say interview.
 43.75% respondents say compensation given by company is holiday, 37.5% ay bonus.
 56.25% respondents are satisfy with company policy, 25% are not and 18.75% respondents
can’t say.
 37.5% respondents say performance appraisal system adopted by company is MBO, 37.5% say
360 degree and only 25% respondents say induction.
 62.5%respondents say internal promotion is the method for succession and 37.5% say direct
recruitment.

41
 50% respondents say the promotion base adopted by company is merit and 50% respondents
say experience.
 56.25% respondents say on the job training method is adopted by company for training
programme and 31.25% respondents say off the job training method.
 43.75% respondents want gratuity from company and 43.75 want provident fund.
 43.75% respondents want canteen service in the company, 37.5% want medical service and
18.75% respondents wants other facilities.

BIBLIOGRAPHY & REFRENCES

42
 BIBLIOGRAPHY & REFRENCES

 BOOKS:

 C.B. GUPTA
Human Resource Management
Sultan chand and sons, New Delhi, 2007

 Bhattacharyya Kumar Dipak

Human Resource management
Excel Books, New Delhi, 2006

 Dessler Gary
Human Resource Management
Pearson education pte. Ltd., Indian Branch, Delhi, 2005

 INTERNET SURFING:

 REPORTS:

 The Times of India

 Journals And Periodicals

43
QUESTIONAIRE

44
 APPENDICES

QUESTIONAIRE -

1. Are you satisfied with the policies adopted by the company?

(i) Yes
(ii) No
(iii) Can’t say

2. According to you what is the most important factor for selection policy?

(i) Qualification
(ii) Post experience
(iii) Interview

3. Which type of compensation is given by the company?

(i) Holidays package

(ii) Bonus
(iii) Others

4. Are you satisfied the have policy of the company?

(i) Yes
(ii) No
(iii) Can’t say

5. Which type of Performance Appraisal system is adopted by the company?

(i) MBO
(ii) 360 degree appraisal
(iii) Induction

45
 6. What type of method adopted by your company for succession?

(i) Internal Promotion

(ii) Direct Recruitment

7. What Promotion base is adopted by the company?

(i) Merit Base

(ii) Experience base

8. Which method is adopted by the company in Training Programmed?

(i) On the job

(ii) Off the job
(iii) Others

9. Which type of social security you want from the company?

(i) Gratuity
(ii) Provident Fund
(iii) Others

10. Are you want to other’s facility in your Company?

(i) Canteen service

(ii) Medical Service
(iii) Others

46