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PROJECT REPORT

ON

Role of HR Manager in HR Department Setup


AT
UNIQUE AIR EXPRESS

BY
NIRANJAN NANDKUMAR KULKARNI

UNDER THE GUIDANCE


PROF. ROHIT OKE

IN PARTIAL FULFILLMENT OF
MASTERS DEGREE IN BUSINESS MANAGEMENT,
UNIVERSITY OF PUNE, PUNE
YEAR 2009-2011

TRINITY COLLEGE OF ENGINEERING OF


RESEARCH

ACKNOWLEDGEMENT
1
First and foremost, I wish to express my devoted indebtedness and sincere

gratitude towards my guide Prof. Rohit Oke, Professor, Trinity Institute of

Management, Pune whose kind and incomparable guidance, keen interest,

inspiring encouragement, valuable suggestions and direction enable me to

undertake research work and always turn me towards successful path.

I am highly grateful to Dr. Jyoti Gogte, Director of TIMR and Dr. Jayant

Sankpal, Principal of Trinity college of Engineering and Research, for enlighting

my path and providing all facilities, without which this project work could not be

possible.

A special word of thankful appreciation for the work in by Prof. Ejaz

Qureshi and Prof. Vineeta Shukla, who have been most willing to give this

project to the final shape.

It is proud privilege to express sincere and well devoted thanks to Mr.

Nilesh Deshmukh, Managing Director, UNIQUE AIR EXPRESS, Pune for

giving me an opportunity to work on my study in his company.

Executive summary:

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Money, Men, Materials, Markets are very important five Ms. which are essentials for

carrying on the activities of production and selling the same in order to carry on the business of

an organization or enterprise. The proper and efficient management of these five Ms is very

essential for the success of the organization. But the management of men and human resources is

the most fundamental. It is really a challenging task. In wider sense, human resources create

organizations and make them survive and prosper. If human resources are neglected or not

properly managed, the organization is not likely to do well. The human resources of an

organization is considered as one of the largest investments and plays a very crucial role in the

development process of an organization at the micro level and of the whole economy at the

micro level. For full and proper utilization of natural resources, machines, technology, etc.,

efficient and committed manpower is very essential. Hence, successful human resource

management is very essential for the growth and success of an organization.

As Human resource management is essential, the separate department is dedicated to this

management, this department is known as Human Resource Department. If a company has not

developed HR Department, a company may face numerous problems. The functions of Human

Resource Management will not be executed properly. If the selection procedure itself would be

wrong or probably not scientific then one can not expect optimum output. The basic problem is

that the employee will not be recognized. In this study, the need of HR department is analyzed.

The data is collected from the company, which is established nearly 8 years back but the HR

department is not developed yet. The problems of the employees are understood and studied.

Index

3
Sr. No Topic Page

1 Introduction 6

2 Analytical aspect and practical 13


HR practices with Theoretical
background
3 Importance and Scope of 29
Company’s History

4 Analysis and Interpretation of 35


Data
5 Conclusion and Suggestion 50

6 Questionnaire 52

7 Bibliography 55

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CHAPTER: 1

INTRODUCTION

INTRODUCTION
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In this competitive world everybody is striving for excellence. If a small company steps
ahead for an excellence is no wonder. In subsequent paragraphs the description is given for a
company which is existed for nearly 5 years. Only the problem was, this company did not have
any HR department. A thought came into management discussions that there has to be an HR
Department as company’s wings were spreading in every direction. The need and importance of
HR department and this topic is given below.

1.1Importance of HR Department
A business of industrial concern makes use of money, materials, machines and men for
carrying out its activities and realization of its objectives. Success of any organization is
depending upon a man because after all he is going to use money, material and machine. Hence
Human resource has got an immense importance. Human resource implies the persons employed
in a concern for performing jobs and the abilities, intelligence, skills and competence possessed
by these persons. It is the responsibility of the management to extract skills and abilities of
employees and to make use of it at right place. At present every enterprise has to face
competition and uncertain environment. Human beings possess the ability to face changing
situations and make necessary adjustments in the ways of working. If the human resources
available in the enterprise are managed efficiently, the abilities of the employees to face
uncertainties can be developed and confidence can be created among them that they can face any
type of challenge and become successful. For morale building this is a very effective technique.

Before the industrial revolution HR department was known as Personnel Department. The
basic difference between Human Resource Management and Personnel Management is its
thought process. In PM human beings were treated as a profit centers and in HRM human beings
are treated as Resources. There were no labour laws, no welfare activities and no fair
compensation policies. Management used to treat human beings as machines. Employee’s
morale was low. There were no motivational techniques. Hence the need of proper HR
Department was generated.

Every single human being works for meeting his needs. Management has to take care and
understand what are different needs of people employed in the organization? Employees expect
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that they should be treated as human beings and not machines. If they are recognized
somewhere, they feel attached to the organization. Instead of feeling of ‘I’ or ‘me’ everybody
should feel ‘we’, ‘our’ etc. This is a very significant role of HR department.

The major tasks what HR department has to perform are, fair remuneration, and provision of
good working conditions, welfare facilities and opportunities for promotion. There are various
welfare activities which are carrying out in various organizations now days. In this context HR
department plays vital role. No doubt even if HR department would not be existed in the
company, then also management can carry out these all activities but the effectiveness is
indistinct. HR manager bridges the gap between management and employees in the organization.

Government has created various labour laws with the objective of protecting interests of the
employees. Such labour laws relate to employment, payment of remuneration, discharge from
service, payment of bonus, working conditions etc. management has to study the provisions of
labor laws applicable to them and accordingly various decisions related to the employees should
be taken.

Hence with the increasing importance of human resources is realized by the management of
business and industrial concerns and therefore for the management of human resources, a
separate department known as ‘Human Resource Department’. However, the organization or
structure of the Human Resource Department depends upon the size of the enterprise, form of the
organization adopted and the types of the activities to be carried out by the department. The
management of the enterprise decides how the HR department should be organized and in how
many sections, it should be divided.

1.2 Selection of the organization


As far as my project title is concern, I was searching for such an organization which does not
have an HR department but the management is willing to form or to set an HR department.
Fortunately I could get an opportunity to complete my summer internship project in Unique Air
Express (UAE). UAE is an organization which has established 8 years back, but somehow
management had not thought about forming an HR department. When I approached them they

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allowed me to interfere. After 8 years of establishment they thought of forming an HR
department. The company profile and history of the company is given in subsequent paragraphs.

1.3 Research Methodology

1. What is mean by a term Research?


Research is a common phrasing refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
investigation.

“A careful investigation or inquiry especially through search for new facts in a branch of
knowledge”

-The Advanced Learner’s Dictionary

2. Sampling:

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i) Sample design:
A Sample design is nothing but a plan of our study which generally helps us to proceed
further. Research design is the conceptual structure within which research is conducted; it
constitutes the blue print of the collection, measurement and analysis of the data. Decisions
regarding what, where, when, how much, by what means concerning an inquiry or a research
study constitute a research design. There are different types of sample designs based on two
factors viz., the representation basis and element selection technique. On the representation basis,
the sample may be probability sampling or it may be non-probability sampling. Probability is
based on the concept of random selection, whereas non-probability sampling is non-random
selection. On element selection basis, the sample may be either unrestricted or restricted. When
each sample element is drawn individually from the population at large, then the sample so
drawn is known as unrestricted sample, whereas all other form of samplings are covered under
the term restricted sampling.

ii) Questionnaire Design:


This method of data collection is quite popular, particularly in case of big enquiries. It is
being adopted by private individuals, research workers, private and public organizations and
even by governments. In this method a questionnaire is sent to a persons concerned with a
request to answer the questions and return the questionnaire. A questionnaire consists of number
of questions printed or typed in a definite order on a form or set of forms. The questionnaire is
mailed to respondents who are expected to read and understand the questions and write down the
reply in the space meant for the purpose in the questionnaire itself. The respondents have to
answer the questions on their own.

3. Data Collection:
For any study a data is required. For any research a data is collected by various means. But
first of all we must know that what are the types of data? The types of data are:

i) Primary Data

ii) Secondary Data


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i) Primary Data:
The primary data are those which are collected afresh and for the first time, thus happen to be
original in character.

Primary Data

Observation Interview Questionnaire

ii) Secondary Data:


Secondary data means data that are already available i.e., they refer to the data which have
already been collected and analyzed by someone else.

Secondary Data

Governmental Journals Foreign Internet


Publications Publications

4. Sample Size:
The sample size of my study consists of 25 respondents.

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5. Sample Area:
The study is conducted with the help of employees of Unique Air Express.

6. Research instrument:
A structured questionnaire is used as a research instrument. A questionnaire is consisting of
multiple choice questions in order to get the data.

7. Statistical tool:
The statistical tools used for analyzing data collected are percentage method and diagrams.

1.4 Objectives of the Study:


1. To identify need and functions of HR department

2. To setup and implement an HR department.

1.5 Limitations of the study:


1. Unwillingness of respondents: Collection of a data was a very tough job. Respondents
were not willing to fill the questionnaire. Again because of unwillingness respondents
opinion may vary with actual response.

2. Small no. of respondents: Again the sample size of the study is very small i.e. 25. It was
very hard to interpret the conclusion with such a less response.

3. Time: With a short period of time it was a very difficult to complete a whole project. HR
department setup is not a small task. It is a time consuming process. Within a stipulated
time merely a setup could complete. The post setup analysis is missing.

4. Lack of awareness: The management was not aware of HR role and responsibilities. It
was hard to implement an HR department in such an environment.

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CHAPTER: 2

ANALYTICAL
ASPECTS OF
PRACTICAL HR
PRACTICES
THEORETICAL
BACKGROUND

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Human Resource Management, as a branch of Management, is comparatively of recent
origin. Though Human Resource Management activities have probably been performed since
ancient times and Human resource has always been a key source as a formal discipline, its roots
are traceable to the period immediately following the industrial revolution. It can be said that
pioneering work of the masters of management like Peter Drucker, Douglas MacGregor, etc. laid
the formal foundation of Human Resource Management.

Various definitions of Human Resource Management are given in subsequent paragraphs.

Prof. Cynthia D. Fisher, Lyle F. Schoenfeldt and James B. Shaw state that,

“HRM involves all management decisions and practices that directly affect or influence
the people or Human resources who work for the organization”.

Prof. K. Aswathappa states that,

“Human Resource Management is a management function that helps manager to recruit,


select, train and develop members for an organization”.

According to Prof. George T. Milkovich and Prof. John W. Boudreau,

“Human Resource Management is a series of decisions that affect the relationship


between employees and employers; it affects many constituencies and is intended to influence
the effectiveness of employees and employers”.

Human Resource Management: Objectives and Functions

Objectives:
The important objectives of HRM are listed below.

1) To create an able and motivated workforce and ensure its effective utilization to
accomplish various organizational goals.

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2) To establish and maintain suitable and sound organizational structure in order to secure
integration of employees and groups and to create desirable working relationship
amongst them for increasing organizational effectiveness.

3) To create atmosphere to maintain high morale, to encourage value system and


environment of trust, mutually of interests.

4) To provide training and education for developing the human resources.

5) To provide opportunities for participation, recognition, etc. and foe a fair, acceptable and
efficient leadership.

6) To provide attractive incentives, monetary benefits, social security measures and welfare
facilities, various non-monetary rewards, benefits etc. in order to ensure the retention of
competent employees.

7) To adopt such policies which recognize merits and contributions by the employees.

8) To ensure that there is no threat of unemployment and to give the confidence to the
employees regarding stability of their employment.

9) An organization has to bear in mind that its responsibility towards the society as a whole.
The society may not desire to enforce reservation in hiring and the laws of leading to
discrimination affecting the society badly or if certain organizational decisions have some
negative impact on the society. Such decisions should be avoided.

The Primary and foremost important objective of HRM is to ensure the availability of
competent and willing work force to an organization. Beyond this there are other objectives too.

If we want to categorize the above mentioned objectives of HRM, that can be done in
following manner.

• Personal Objectives

• Functional Objectives

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• Organizational Objectives

• Societal Objectives

Personal
Objectives

Functional
Objectives

Organizational
Objectives

Societal Objectives

• Societal Objectives:
Societal Objectives are, to be ethically and socially responsible to the needs and
challenges of the society while minimizing the impact of such demands upon the organization.

• Organizational Objectives:
Organizational Objectives are, to recognize the role of HRM in bringing about
organizational effectiveness.
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• Functional Objectives:
Functional Objectives are, to maintain the department’s contribution at a level
appropriate to the organization’s needs.

• Personal Objectives:
To assist employees in achieving their personal goals is a personal objective of HRM.

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Functions:
In order to realize the objectives stated above, HRM must perform certain functions.
Generally, it may be stated that there is a correlation between the objectives and functions. In
other words, some functions help realize specific objectives.

HRM Objectives Supporting Functions


1. Societal Objectives 1. Legal compliance

2. Benefits

3. Union-Management Relations

2. Organizational Objectives 1. Human Resource Planning

2. Employee relations

3. Selection

4. Training and Development

5. Appraisal

6. Placement

7. Assessment

3. Functional Objectives 1. Appraisal

2. Placement

3. Assessment

4. Personal Objectives 1. Training and Development

2. Appraisal

3. Placement

4. Compensation

5. Assessment

Table: HRM objectives and related Functions

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There are lots of important functions of Human Resource Management; some of them are
enlisted in subsequent paragraph.

• Recruitment and Selection:


Recruitment is understood as the process of searching for and obtaining applicants for
jobs, from among whom the right people can be selected. Theoretically, recruitment process is
said to end with the receipt of applications, in practice the activity extends to the screening of
applications so as to eliminate those who are not qualified for job. In reality, the term is used to
describe the entire process of employee hiring. Recruitment represents the first contact that a
company makes with potential employees. It is through recruitment that many individuals will
come to know a company, and eventually decide whether they wish to work for it. But there is a
difference between recruitment and selection. Selection is the process of picking individuals (out
of pool of job applicants created with the help of recruitment process) with requisite
qualifications and competence to fill jobs in the organization. Recruitment process is said to be a
positive in its approach as it seeks to attract as many candidates as possible. Selection, on the
other hand, is negative in its approach as it seeks to eliminate as many unqualified applicants as
possible in order to identify the right candidates.

• Training and Development:


Training and Development refer to the imparting of specific skills, abilities and
knowledge to an employee. More clearly, training and Development may be understood as any
attempt to improve current or future employee performance by increasing an employee’s ability
to perform through learning, usually by changing the employee’s attitude or increasing his or her
skills and knowledge. The need for training and development is determined by the employee’s
performance deficiency, computed as follow:

Training and Development need= Standard performance – Actual performance

We can make distinction among training, education and development. Such distinction
enables us to acquire a better perspective about the meaning of the terms. Training refers to the
process of imparting specific skills. Education, on the other hand, is confined to theoretical
learning classrooms. Development refers to those learning opportunities designed to help

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employees grow. Development is not primarily skills oriented. Instead, it provides general
knowledge and attitudes which will be helpful to employees in higher positions.

• Appraising and Managing Performance:


In simple terms, Performance appraisal may be understood as the assessment of an
individual’s performance in a systematic way, the performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, co-operation, judgment, versatility, health and the like. The other
terms used for performance appraisal are: performance rating, employee assessment, employee
performance review, personnel appraisal, performance evaluation, employee evaluation and
merit rating. In a formal sense, employee assessment is as old as concept of management, and in
an informal sense, it is probably as old as mankind. Job analysis sets out requirements, which are
translated into performance standards, which in turn form the basis for performance.

Job Analysis Performance Standards Performance Appraisal

Describes work and Translate job Describes job relevant


personnel requirement of requirements into levels strength and weaknesses
a particular job of acceptable or of each individual
unacceptable
performance

• Managing Basic Remuneration:


Remuneration is the compensation an employee receives in return for his or her
contribution to the organization. Remuneration occupies an important place in the life of an
employee. His or her standard of living, status in the society, motivation, loyalty and productivity
depend upon the remuneration he or she receives. For the employer too, employee remuneration
is significant because of its contribution to the cost of production. Besides, many battles are
fought between the employers and employees on the issues relating to wages or bonus. For HRM
too, employee remuneration is a major function. The HR specialist has a difficult task of fixing
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wages and wage differentials acceptable to employees and their leaders. Hence employee
remuneration is an important function.

• Managing Employee Benefits and services:


Employee benefits and services include any benefits that the employee receives in
addition to direct remuneration. Benefits and services, however, are indirect compensation
because they are usually programs, employee benefits or hidden payroll. Nearly every
organization in our country provides benefits and services to its employees. These fringes
continue to grow in their importance. Several reasons account for this trend. An organization
with the introduction of fringes, seeks to enhance employee morale, remain cost-effective and
introduce changes without much resistance.

HRM Models:
After functions and objectives let’s now discuss HRM Model. Some models are
discussed as follow:

• The Harvard Model

The Harvard model claims to be comprehensive in as much as it seeks to


comprise six critical components of HRM. The dimensions included in the model
are: stakeholders’ interests, situational factors, HRM policy choices, HR outcomes
and long-term consequences.
The stakeholders’ interests recognize the importance of ‘trade offs’ between the
interests of owners and those of employees. Trade offs also exists among other interest groups.
But this is the challenge of HR manager. He/she needs to balance the interests of all
stakeholders’ interests.

The situational factors influence management’s choice of HR strategy. The contingent


factors included in the model include work force characteristics, management philosophy, labour
market, task, technology, laws and social values.

HRM policy choices emphasize the management’s decisions and actions in terms of
HRM can fully be appreciated only if it is recognized that they result from an interaction

20
between constraints and choices. The model depicts management as a real actor, capable of
making at least some degree of unique contribution within environmental and organizational
parameters and of influencing those parameters themselves overtime.

Stakeholders’ interests

Stakeholders

Management

Employee groups

Government

Community Human Human Long-Term


Resource resource consequences
Union Management outcomes
policy choices Individual well
Commitment being
Employee
influence Competence Organizational
effectiveness
Situational Congruence
Human resource
Factors Societal well
flow Cost- being
Workforce
characteristics

Business strategy
and conditions

Management
philosophy

Unions

Fig: The Harvard Model of Human Resource Management

Organizational commitment, employee competence, congruence and cost effectiveness


constitute HRM outcomes. The assumption here is that employee have talents which are rarely
exploited for organizational growth and that they are willing to grow with the organization if a
participative environment is available.

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The long term consequences include societal well being, organizational effectiveness
and individual welfare. There is obvious linkage among the three. Employee welfare leads to
organizational effectiveness and efficacy of all organizations contribute to societal well being.

The feedback loop is the sixth component of the Harvard Model. As was stated above,
situational factors, influence HRM policy and choices and are influenced by long term
consequences. Similarly, stakeholders’ interests influence HRM policy choices and in turn are
impacted by long term outcomes.

• The Guest Model


Yet another HRM model was developed by David Guest in 1997 and claims to be much
superior to other models. The details will justify the claim. This model claims that HR manager
has specific strategies to begin with, which demand certain practices and when executed, will
result in outcomes. These outcomes include behavioral, performance related and finance.

HRM HR Behavior Performa


Practices Outcome al nce
s Outcome Outcome Financia
Hiring s
HRM s l
Commitm
Strategi Training ent Motivation outcome
Productivi
es s
Appraisal ty
Quality Co-
operation Profits
Relation Innovation
Flexibility
Citizenshi Quality
p

Fig: The Guest Model of HRM

The model emphasizes the logical sequence of six components: HR Strategies, HR


practices, HR outcomes, behavioral outcomes, Performance results and financial consequences.
Looking inversely, financial results depend on employee performance, which in turn is the result
of action oriented employee behaviors. Behavioral outcomes are the results of employee

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commitment, quality and flexibility, which in turn, are impacted by HR practices.HR practices
need to be in tune with HR strategies which invariably aligned with organizational strategies.

Role and Responsibilities of HR Manager:


Increasing importance of human resources is realized by the management business and
industrial concerns and therefore for management of human resources a separate department
known as Human Resource Department is created in the organizational structure. The HR
department is headed by an executive who may be called as HR Manager. He is the professional
in the field of human resources and works directly under the top management.

The management of human resource is basically concerned with creation of harmonious


working relationships among its participants and bringing about there utmost individual
development. Various functions which are performed by a human resource manager have basic
objective to bring together expertise in the most scientific way and also to create the attitudes
that motivate the people in the organization to achieve the goals of the organization
economically, effectively, efficiently and speedily. From this point of view, human resources
who affect the relationships between employers and employees and also to consider the inter-
relationships among these decisions. It is the primary function of a human resource manager to
manage the human resources of his organization to attain the objectives of the organization.
From the primary responsibilities of human resource manager enumerated below.

1. To develop properly a thorough knowledge of corporate culture, policies, plans, etc.

2. To involve actively himself in organizations strategies formulation.

3. To initiate change and act as an expert and facilitator.

4. To bring co-ordination among the people working in the organization and their working,
so that the objectives of the organization can be achieved effectively and efficiently.

5. HR manager is expected to act as an internal change agent and consultant.

6. To develop various organizational teams and their working relationship with other teams
and individuals.

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7. To identify various problems, especially in the human resources areas and to determine
appropriate solutions for those problems.

8. To design and develop structured learning programmes to help to accelerate learning for
employees and their groups.

9. HR manager has to take many decisions which affect the relationships between the
employers and employees. For example, how many employees to be appointed at what
levels of skills and experience, whom to be trained and promoted, how much to pay,
how to tackle the general problems of the employees and to handle dissatisfied
employees etc. Many decisions are very complex and complicated. HR Managers’ role is
very important in this respect and he has to take decisions very carefully.

10. To design suitable HR systems for producing maximum impact on organizational


performance and development.

11. To provide support services for the implementation of HRD programmes effectively.

12. To take necessary steps to ensure the full and optimum use of available resources and
competencies and to create commitment among the people working in and for the
organization to meet consumer’s needs. There must be smoothest flow of products and
services to consumers; otherwise the consumers cannot be satisfied.

13. To evaluate the impact of HRD practices and programmes practiced and to communicate
their results for further development.

14. To suggest long-term strategies for organizational excellence.

Wings of Human Resource Management:

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Nature of
HRM

Prospects Employee
of HRM Hiring

Human
Resource
Management Employee and
Industrial
Executive
Relations Remuneration

Employee Employee
Maintenance Motivation

Stages Involved in HR department setup:

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Review the current practice (If any)

Audit all HR activities that are performed


till date

Understand the organization

Understand the organizational structure

Discuss the value and beliefs with senior


management and need for HR Department

Discuss the expectations from HR


department

Even though the HR department is not there


presently, still number of HR activities is
being carried out in the organization. We
have to analyze those activities.

Review HR Manual

Starttoup
Give priority thewith
tasks such as
HR DepartmentURGENT,
objectivesNOT URGENT

Strategies

Draft on Recruitment and Selection process

Draft on organizational structure

Draft on payroll/ compensation/


26 Admin

Draft on new joining formalities and their training


program.
Form a record of all the employees. The
record contains Name, address, phone
number, designation, joining date, hobbies
and birth date.

Preparation of files for the records of Phone


bills, Leaves, Expenses on welfare activities,
contacts of external parties.

CHAPTER: 3
27
IMPORTANCE AND
SCOPE OF
COMPANY’S
HISTORY

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Company Profile: Name of the Company

UNIQUE AIR EXPRESS

Express Services, Unique Solutions.

Addresses: Pune (Corporate office)

130, Siddhivinayak Apartment,

Pune- 30.

Telephone- 0091-20-24491073/24462362

Mumbai Office

Gali No. 1, Gala No. 26, Koldongari, Andheri (E)

Mumbai-400069

Telephone- 022- 26848812/26845183

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Strengths:
Started as a mere express operator, today we have spread our wings with our worldwide
associates to form an extensive international transportation network. With offices located in
Pune, Mumbai, Bangalore, London, Dubai, Singapore, hongkong and having its channel partners
across the world. Unique Air Express offers comprehensive international transportation solutions
to the customers around the world.

The company has Global experience with local knowledge and tailor made solutions for
customer time building shipments.

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Technology Back Up:
 Software Interlinked

 SMS tracking by consignment No.

 Consignee Messenger System/ Expected delivery dates

 A completely integrated information and communication infrastructure

 State of the art tracking system developed by our own technocrats. To experience
log on to

www.uaxglobal.com

Team:
As a solution provider Unique Air Express invests in building knowledge workers rather
than employees. Only the best and qualified people are recruited to provide our clients with the
customized services. We organize various training programs to keep our work force updated.
Thus they are empowered to act as the creative solution providers who are committed to provide
the best quality service to our customer.

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HR Department Objectives for Unique Air Express:

Employee • Develop a highly skilled


workforce
• Minimize employee turnover

Customers • Increase customer satisfaction


• Minimize customer turnover
(retention)
• Increase customer base
Quality • Quality the first time
• Quality every time
• Minimize product returns and
allowances
• Optimize the cost of quality
Financial performance • Minimize product cost
• Maximize profitability
• Lead industry in sales per
employee
Operations • Minimize product lead time
• Minimize inventory levels
• Reduce non-value added
activities

History of the Organization:


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Some 8 years ago two friends from the same background came together for establishing
service standards in courier and logistics industry. They almost gave challenge to all established
brands in this sector. The main challenge or barrier or threat in front of them was to penetrate in
the market, with new ideas with new tactics. As the owners of the company were belong to
middle class families. They did not have any background of business nor did they have any
academics in business schools. Still they struggled for visibility of brand of UNIQUE AIR
EXPRESS. Earlier they focused on pune’s own people for small consignments. As soon as they
setup themselves they focused on logistics part. Now the target customers for the company were
a CORPORATE.

The company started with 4 computers. The area covered by the company was a small
room. The people involved in the day-to-day activity were multi skilled. There were no separate
departments. But at the same time the company was expanding its wings. The number of
consignments was increasing as days were passing. The time came when the owner of the
company thought there should be a separation of the department. And he separated the
departments. Now the departments were as follows:

a) Marketing

b) Finance

c) Operation

Each department was consisting of one departmental head and his subordinates. Now the
company was in great time. The strength of the company is its service value. The big companies
can not give or provide personalized service. This is the biggest assets for this company. Now the
company has decided the targets for marketing people. There was a need of some business
generators. One person cannot handle all the marketing activity. The same case was there with
finance department also, the finance department was in a need of some good finance background
people for taking care of all transactional activities of growing business. Hence again the owner
recruited some telecallers in marketing department and some accountants in finance department.
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At the end the owners of the company recognized a need of HR department with growing
business and growing business activities. Hence the HR department is setup.

Organizational Structure:

MANAGING DIRECTOR

Co-Ordination Operations Sales Manager HR and Admin


Manager Manager Manager

Business
Development
Manager
Import Expor Import Expor
t t
Sales
Supervisor

Courier Cargo

Sales Executive
Export
Back Customer Operation
office Support Executive
Tele Caller

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Chapter: 4

Data Analysis
and Data
Interpretation

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Analysis of Data:
(Analysis of randomly selected employees)

Analysis of data is the process of presenting the data in the form of charts and diagrams.
The collected information can be demonstrated with the help of such diagrams and charts.

The analysis of the data collected through the Questionnaire method can be stated as
follows.

1. Age of the employees:


Option Between 18-25 Between 25-35 Above 35 Total

Response 17 6 2 25

% 68% 24% 8% 100%

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Most of the employees are between age group of 18-25. This means either
the policy of the company is to hire this partcular age group or the attrition rate
is high.

2. Is there a feeling of mutual trust in your organization?

a) YES

b) NO

Option YES NO Total

Response 11 14 25

% 44% 66% 100%

Majority of employees feel that there is a lack of mutual trust in the


organisation. There are some people in the organisation who feel that there is an

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environment of mutual trust, but this is because these people are working with
theorganisation so far.

3. Does management take sincere efforts to identify and utilize employees’


full potential?

a) Fully

b) Partially

c) Not at all

Option Fully Partially Not at all Total

Response 1 14 10 25

% 4% 56% 40% 100%

Majority of people partially agree that there potential is sincerely identified and
utilized properly.
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4. Does recruitment and selection process scientific?

a) YES

b) NO

Option YES NO Total

Response 6 19 25

% 24% 76% 100%

Majority of employees are not scientifically selected, rather according to


them scientific selection process is not adopted.

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5. How is the sense of job security among the employees?

a) Secured

b) Insecured

Option Secured Insecured Total

Response 4 21 25

% 16% 84% 100%

Majority of employees are feeling insecured about their job.

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6. Do you have grievence cell?

a) YES

b) NO

Option YES NO Total

Response 0 25 25

% 0% 100% 100%

All the employees agreed that there is no grievence cell in the organization.
Most of the employees are insecured about their job is because their personal or
organizational problems are not solved by the management.

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7. What are motivational techniques used so far?

a) Monetary

b) Non-monetary

c) Combination

d) No Motivation

Option Monetary Non- Combination No Total


monetary Motivation

Response 3 11 8 3 25

% 12% 44% 32% 12% 100%

Most of the times non-monetary kind of motivational tachniques are used in the
organization.

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8. Do you feel that your job suits your educational qualification?

a) YES

b) NO

Option YES NO Total

Response 10 15 25

% 40% 60% 100%

Majority of the employees feel that whatever jobs are assigned to them are not
identical to their qualification or interests.

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9. Are you paid satisfactorily?

a) Underpaid

b) Satisfied

c) Overpaid

Option Underpaid Satisfied Overpaid Total

Response 16 9 0 25

% 64% 36% 0% 100%

Majority of employees think that the wage structure in the organization is not
revised since many days, neither the attractive incentive scheme is available for the
employees.

10.How is an internal communication?

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a) Excellent

b) Good

c) Bad

d) Worst

Option Excellent Good Bad Worst Total

Response 2 6 16 1 25

% 8% 24% 64% 4% 100%

Majority of employees agree that the communication between management and


employees is not satisfoctory.

11.Do you feel that there should be some welfare activities to be


performed?

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a) YES

b) NO

Option YES NO Total

Response 25 0 25

% 100% 0% 100%

All the employees are asking for some welfare activities so that they will feel
recognized and secured.

12.What is your level of satisfaction as far as your work environment is


concerned?

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c) Highly satisfied

d) Satisfied

e) Dissatisfied

f) Highly Dissatisfied

Option Highly Satisfied Dissatisfied Highly Total


Satisfied Dissatisfied

Response 0 6 18 1 25

% 0% 24% 72% 4% 100%

Majority of employees are dissatisfied as far as work environment is concerned.

13.I feel recognised.

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a) Strongly agree

b) Agree

c) Disagree

d) Strongly disagree

Option Strongly Agree Disagree Strongly Total


Agree disagree

Response 1 3 18 3 25

% 4% 12% 72% 12% 100%

One employee is feeling that he is recognised, almost 72% employees feel that
they are not recognised and 12% employees strongly feel that they are not
recognised.

14.Do you feel the need of HR Department?

a) YES

b) NO
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Option YES NO Total

Response 24 1 25

% 96% 4% 100%

Almost 96% employees feel that there should be an HR department, one


employee feels that there should not be an HR department.

Chapter: 5

49
Conclusion
And
Suggestion

Observation:
1) The culture in the organization is very rich.
2) The work environment is a mixture of both formal as well as informal.

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3) The work place is well equipped with computers, printers, telephones, and other
necessary things required.
4) The nature of the employees here is very cooperative, supportive, very motivating and
encouraging
5) Though the company premise is small, still it is kept very clean and tidy.
6) The leadership style adopted by the management is mixed, i.e., according to need they
adopt autocratic as well as cooperative.
7) The company’s canteen is not spacious.

Suggestions:

1) Although the machines are important but the man behind the machine is more important.
The recruitment and selection procedure adopted by the company is not scientific. The
company should look forward for scientific recruitment and selection procedure, so that
the current attrition rate could be reduced (Which is huge currently).

2) After observing the working style of the company it is observed that the company has
recruited unnecessary manpower. The wage system is not proper. The company should
reduce manpower and should concentrate on small groups. So that they can improve
current wage structure and ultimately the attrition rate would be reduced.

3) The internal communication system is weak. The company should try to improve this
scenario.

4) After setting up HR department, the management should convey a positive message in


the employees that this department is for them only.

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Conclusions:

After the survey conducted on whether HR Department should be there or not? At


UNIQUE AIR EXPRESS, Pune, it was found that there should be an HR department. The
importance of HR Department is growing everyday even in small industry also. In above
surveyed data it crystal clear that even employees are not happy with current system. For
improving Industrial relation there should be a mediator. That mediator is known as HR
Manager.

The management should try and help their employees to understand various functions of
HR department. It is understood by the feedback from employees that they are unaware of
various aspects of HR department.

Thus, after HR department setup the organization will be able to achieve their goals, aims
and employee satisfaction in an effective way.

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Questionnaire

1. Age of the employees:

a) Between 18-25

b) Between 25-35

c) Above 35

2. Is there a feeling of mutual trust in your organization?

c) YES

d) NO

3. Does management take sincere efforts to identify and utilize employees’


full potential?

d) Fully

e) Partially

f) Not at all

4. Does recruitment and selection process scientific?

c) YES

d) NO

5. How is the sense of job security among the employees?

c) Secured

d) Insecured

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6. Do you have grievence cell?

c) YES

d) NO

7. What are motivational techniques used so far?

e) Monetary

f) Non-monetary

g) Combination

h) No Motivation

8. Do you feel that your job suits your educational qualification?

c) YES

d) NO

9. Are you paid satisfactorily?

d) Underpaid

e) Satisfied

f) Overpaid

10.How is an internal communication?

e) Excellent

f) Good

g) Bad

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h) Worst

11.Do you feel that there should be some welfare activities to be


performed?

g) YES

h) NO

12.What is your level of satisfaction as far as your work environment is


concerned?

i) Highly satisfied

j) Satisfied

k) Dissatisfied

l) Highly Dissatisfied

13.I feel recognised.

e) Strongly agree

f) Agree

g) Disagree

h) Strongly disagree

14.Do you feel the need of HR Department?

c) YES

d) NO

BIBLIOGRAGHY
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K Ashwathappa, HRM: Function and objectives, Human Resource Management,
India Tata Mcgraw Hill; 8-10

K Aswhathappa: HRM Models, 17-20

Gary Dessler; The changing role of Human Resource Management; 12-15

Websites:

www.citehr.com

www.HRtools.com

www.globalhr.com

www.wikipedia.com

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