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NATIONAL INSTITUTE OF FASHION TECHNOLOGY, CHENNAI

Human resource
management
JURY SUBMISSION

SUBMITTED TO:
Prof. Raghuram Jayaraman
Department of Fashion Technology,
NIFT, CHENNAI

SUBMITTED BY:
KANAGHA PRIYA
RAJASHREE R
VIDHYA C
ARVIND LIMITED

For the Human Resource Management Jury submission,


as a group we have selected the apparel sector- Arvind
Limited (formerly known as Arvind Mills) as our Jury
Project. Through the knowledge we have gained, we
have analyzed the Human Resource Management of
Arvind Limited in various sectors in this document. The
reason for choosing this particular apparel sector is
because of their versatility and prolonged outstanding
performance in the fashion market.
Arvind Limited Human Resource Management 1
ACKNOWLEGMENT

We would like to thank our faculty Prof. Raghuram Jayaraman for having given us the
opportunity to do this project, which has been a valuable learning experience.

We are profoundly grateful for his exemplary guidance on Human Resource Management even
in these adverse times, his encouragement, and for all the opportunities provided by him.

As a group. we are thankful to each other, for believing in Team work and executing it at the
right time in the right way possible. We would also like to thank all our fellow classmates for
their timely support when needed.

Arvind Limited Human Resource Management 2


TABLE OF CONTENTS
1. INTRODUCTION
1.1. Introduction to HRM
1.2. Role of HRM
1.3. HRM in an Apparel Sector
1.4. Importance of HRM in an Apparel Sector
2. COMPANY PROFILE
2.1. Industry structure
2.2. Mission
2.3. Vision
2.4. Scope and Adjective
3. HRM OF THE COMPANY
3.1. HR Vision in Arvind
3.2. HR Strategy
4. RECRUITMENT AND SELECTION
4.1. Recruitment and selection basics
4.2. Recruitment Definition
4.3. Purpose of Recruitment
4.4. Importance of Recruitment
4.5. Selection
4.6. Type of Interviews
4.7. The overall process of Recruitment and Selection in Arvind Limited
5. PERFORMANCE MANAGEMENT SYSTEM
5.1. Definition
5.2. Performance Appraisal
5.3. Performance Grade System
5.4. Timings of Work
6. TRAINING AND DEVELOPMENT
6.1. Training in Arvind Limited
6.2. Training Modules
6.3. Personal Development in Arvind Limited

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6.4. Industrial Relations

7. EMERGING HR TRENDS
7.1. Emerging Trends in Arvind Limited
7.2. Purpose of HR Trends
8. SWOT ANALYSIS
8.1. Need for Swot Analysis
8.2. Strengths
8.3. Weakness
8.4. Opportunities
8.5. Threats
9. SUGGESTIONS TO IMPROVE HR
10. CONCLUSION
11. BIBIOGRAPHY

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1. Introduction
1.1. INTRODUCTION TO HRM It is an action-oriented, self-directed,
global-focused and futuristic activity. It
Human Resource management is a smart focuses on meeting the needs of each
way to manage the efficiency and person in the workplace.
effectiveness of people in a company or
organization as they help the business gain Jobs and businesses need to be
a competitive advantage. It is designed to integrated to enable customer service.
enhance the performance of employees by
fulfilling the strategic objectives of the The HRM approach varies from
employer. organization to organization depending on
how much information is managed in
technology transformation, design and
1.2. ROLE OF HRM increased competitive momentum to
increase staff capacity. Competitive
The role of human resource
challenges encourage companies to make
management in the organization is in the
better use of their employees.
opposition phase. Management recognizes
that HRM is a profession that must play a
key role in the success of an organization.
1.3. HRM IN AN APPAREL
He is an active participant in setting the SECTOR
strategic course that the organization must
take to remain competitive, productive and
efficient. The focus is on people, people are
the lifeblood of the organization. The
diversity of HRM lies in its emphasis on
people at work and their concerns about the
well-being and comfort of employees in the
organization. HRM work is highly integrated
and strategically involved. HRM and all
other functions must work together to
achieve the quality of the organization. To be
effective, we need to keep up the good work
locally and internationally.

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The success of an any organization depends and communication with all employees at
mainly on its employees. Human resource all levels. Examples of key HR management
management (HRM) plays an important role skills are broad knowledge of the field,
in achieving the goals of the organization leadership, and effective communication
through their well maintenance of skills. Previously it was called personnel
employees. The Indian clothing industry has management.
played a major role in India which
contributes an important role in the Indian
economy. The clothing retail sector has 1.4. IMPORTANCE OF HRM IN AN
been experiencing major changes with the
advent of organized clothing companies.
APPAREL SECTOR
Organized clothing sales in India is flexible
Human Resource management practices
and is expected to rise to meet up
are essential to the growth and
international standards. In this world of cut
development of a business or sector. These
throat competition the demand for effective
trends have changed drastically in the
HRM practices has been growing rapidly. In
Indian clothing retail industry. Especially
order to face this tough global economic
organized retailers these days are
competition, organized clothing retailers in
emphasizing HRM practices that include
India are beginning to see the need for
recruitment, selection, performance testing,
efficient employees and, as a result, are
training and development, compensation,
strengthening their business with the help
job planning, etc.
of HRM services. Therefore, the
Apart from this the sector is facing some
implementation of HRM has become a major
problems related to its staff lack of skills,
concern.
lack of formal education in re-selling,
attracting workers, threatening poaching
The Indian clothing retail industry with a
and a complex work environment. It means
total profit of around USD 65 billion, 2017, is
that HRM practices in the integrated trading
the second largest post-food retail market
industry need more attention in the near
in India. It has grown by a Compound Annual
future to make it more competitive.
Growth Rate (CAGR) of 11.5 percent over the
period from 2012-17 and is expected to grow
by about 11 percent of the CAGR in 2017-21 to
reach USD 85 billion by year 2021. the most
lucrative part is women's clothing, which
accounts for 53 percent of total income,
says the franchise. Human resource
management includes job evaluation, staff
planning, recruitment, supervision and
training, salary and salary management,
provision of benefits and incentives,
performance appraisal, dispute resolution,

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2. Company Profile
2.1. INDUSTRY STRUCTURE

ARVIND LIMITED is an apparel manufacturing


company. It is also formerly known as Arvind
QUALITY POLICY:
Mills which is a leading Lalbhai Group company. It
 Creative and Innovative.
was first started in 1931. Arvind Limited’s  Integrated with world market.
headquarters is in Naroda, Ahmedabad, Gujarat,  Providing added value to
India. It is one of the largest textile manufacture customers.
ring company in India. Arvind Limited is a  Placing importance on Training
manufacturer of denim, cotton shirting, knits and and Development of its
employees.
khaki (low-light fabrics). The company is an
 Socially responsible.
exemplary exporter and the third largest  Complying with legislation on
manufacturer of denim in the world. environment, work, health and
safety.
2.2. MISSION:  Complying with quality
management, conditions and
continuously improving it.
The most important and preached under lying
theme that runs across the broad spectrum of all
business activities and the thought process at all
stages at Arvind is that of enhancing lifestyles of
QUALITY TARGETS:
people across all diversities and demographics.  To produce with zero error at
the time.
2.3. VISION:  To increase effectiveness of
quality management system
As the mission is stated, the corporate vision continuously.
 To increase production
states: ‘We will enable people to experience a
efficiency.
better quality of life by enriching and inspiring  To increase personal and
lifestyle solutions. occupational developments of
his employees.
2.4. SCOPE AND OBJECTIVE:  To improve environment, human
health and safety constantly
Quality control procedures are being developed at publishing software like Aldus
PageMaker including versions of
Arvind Limited to maintain stability, high
Lorem Ipsum.
production levels come from defined control
areas, products are subject to them various tests
such as entry test and driving test.

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3. HRM of the Company
3.1. HR VISION IN ARVIND

1. We Believe: in people’s potential. The company believes in its power in terms of


performance as well as problem solving.
2. We Endeavour: to coach people to higher responsibilities. The company constantly works
towards nurturing and developing talents within its organization to widen experience to
its employees.
3. We dream of excellence in all means. The company believes in making things happen to
offer a better place to live in.

Building capability, enhancing engagement, and improving productivity.

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3.2. HR STRATEGY

 Arvind has been striving to connect better with their workforce and has constantly made
efforts on the same. The company is working towards ensuring that all their workforce
is well informed.

 For this, an app called ‘SMILES’ has been launched which gives employees complete
access to their salaries and incentives. This establishes complete transparency and
communicates eligibility guidelines.

 The app is also used to share updates and policies such as code of conduct, etc. An
added advantage of this app is that it asks employees what their mood is from time to
time.

 Arvind Mills claims that this data will be correlated with store performance which can
be assessed overtime. ‘SMILE’ has been a major tool to connect all workforce and
convey information faster. With the fading of the traditional method of the HR team
solving every query manually, SMILE has helped save time and give instant solutions to
its employees.

 The business vision of any company lies in its Human Resources. For this, Arvind has
been striving to hire the best employees for its business. To retain the already available
talent and ensure sustainability is a key factor of Human Resources. Managing human
resources requires strategies across divisions.

 Arvind Mills has been striving to provide opportunities to its employees which help
develop their skill to take up bigger challenges and responsibilities. The company has a
well-defined competency which clearly highlights the leadership skills expected from an
individual to become more successful.

 Communication channels to receive feedback on the overall working environment as


well as the tools and resources needed to perform at the best potential have been
adapted by the company through its HR department. The company believes and
encourages a dynamic working environment where the workforce must evolve socio-
economically.

 Digitalization which can help encourage innovation as well as collaboration is being


taken at a higher level. To ensure that employees of all age groups and backgrounds
have an effective role to play in the growth of Arvind, the Human Resources gives high
importance to its talent management process

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4. Recruitment and Selection
4.1. RECRUITMENT AND SELECTION Arvind Limited is in need for management
BASICS staff to manage the various business
activities to function smoothly and
Recruitment and Appointment are the most efficiently. In this recruitment, and selection
important factors in Arvind Limited when it of the right people is important. Proper
comes to Human Resource department. This selection of candidates is done as the
analyses the employee’s responsibilities believe employee management is not
and management activities. For the brand possible if unqualified people are selected
value, there are many individuals being and hired in a business unit.
want to be a part of Arvind Limited hence
the employment continues to be selective. 4.2. RECRUITMENT DEFINITION

Recruitment is the process of finding a good Recruitment means to estimate the


quality staff resources to meet out demands available vacancies and to make suitable
of the work schedule and they can use arrangements for their selection and
effective methods of attracting adequate appointment. Recruitment is understood as
staff numbers to facilitate and effective the process of searching for and obtaining
selection of efficient employees. applicants for the jobs, from among whom
the right people can be selected. A formal
Arvind Limited take cares of recruitment definition state that,
and selection in the beginning as well after
which additional power is required due to “It is the process of finding and attracting
the expansion and development of business capable attracting capable applicants for the
activities. employment.”

The process begins when new recruits are


sought and ends when the applications are
submitted. The result is a pool of applicants
from in which new employees are selected.
“tHe rIgHt Person For tHe In this, the available vacancies are given
rIgHt JoB” Is tHe BasIc wide publicity.

PrIncIPLe oF recruItment.
“Recruitment is the process of searching for
the prospective employees and stimulating
them to apply for the jobs in the stimulating
Arvind Limited pays attention to the
them to apply for the jobs in the
selection of its employees, especially in its
organization”
management. Operational efficiency is
-EDWIN B FLIPPO
equally important and critical to the efficient
operation of this organization

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4.3. THE PURPOSE FOR interested candidates are
RECRUITMENT encouraged to submit application for
the purpose of selection.
The need for recruitment in Arvind Limited
is due to the following reasons/ situation: 4.5. THE SOURCES AND THE TYPES
OF RECRUITMENT
 Creation of new vacancies due to
their growth, expanding their growth, In Arvind Limited, they have both types of
expansion and diversification of Recruitment which is the Internal and the
business activities in their enterprise. External.
In addition, new vacancies are
possible due to job specification. Internal Recruitment
 Vacancies due to promotions, Internal recruitment seeks applicants for
transfer, retirement, termination, positions from within the company. The
permanent disability, death and labor various internal sources
turnover  Transfers
 Promotions
4.4. IMPORTANCE OF RECRUITMENT  Upgrading
 Demotion
 Determine the present and future  Retired employees
requirements of Arvind Limited on  Retrenched employees
conjunction with its personnel-  Dependents and relatives of
planning and job analysis activities. deceased employees
 Increase the pool of the job
candidates at minimum cost.
 Help increase the success rate of the External Recruitment
selection process by reducing the External recruitment seeks applicants for
number of visibly under qualified or positions from sources outside the company
overqualified job applicants. as they have outnumbered the internal
 Help reduce the probability that job methods
applicants, once recruited and  Press advertisements
selected, will leave the organization  Educational institutes
only after a short period of time. Meet  Placement agencies/ outsourcing
the organization’s legal and social  Unsolicited applicants
obligations regarding the  Employment exchangers
composition of its work force.  Recruitment at factory gate
 Increase organizational and  Labor contractors
individual effectiveness in the short
 Employee referrals
term and long term. Evaluate the
effectiveness of various recruiting
techniques and sources for all types
of job sources
 Recruitment is a positive function in
which publicity is given to the jobs
available in Arvind Limited and

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4.6. SELECTION adopted to unskilled, skilled, managerial
and profession employees.
Selection is defined as the process of
differentiating between applicants in order  INFORMAL INTERVIEW- As we
to identify and hire those with a greater started to study about the unskilled
likelihood of success in a job. Selection is and semi-skilled workers selection,
basically picking an applicant from a pool of we came to know about an informal
applicants who has the appropriate interview which is an oral interview
qualification and competency to do the job. that is conducted in Arvind Limited
which may take place anywhere. The
4.7. SELECTION PROCESS employees are the managers, or the
personnel manager may ask a few
Selection is a very essential yet a long almost inconsequential questions like
process in Arvind Limited, commencing name, place of birth, names of
from the preliminary interview of the relatives etc. either in their
applicants and ending with the contact of respective offices or anywhere
employment. outside the plant of company. As it is
Informal It doesn’t have a plan and
Step-1 PRELIMINARY SCREENING OF nobody prepares for it. This is used
APPLICANTS widely when the unskilled labor
Step-2 REVIEW OF APPLICATION BLANK market is tight and when you need
workers badly. This interview is very
Step-3 CHECKING REFERRENCE rare yet a Time efficient one in Arvind
Limited. The candidates selected
Step-4 PHYSICAL EXAMINATION through Informal interviews have a
Step-5 PSYCHOLOGICAL TESTING solid training module.

Step-6 EMPLOYMENT INTERVIEW  FORMAL INTERVIEW - Formal


Step-7 EVALUATION OF THE PROGRAMME interviews is held for semi-skilled
and Skilled employees in the firm by
the employment office in a more
4.8. TYPES OF INTERVIEWS formal atmosphere, with the help of
CONDUCTED well-structured questions, the time
and place of the interview will be
The employment Interviews in Arvind stipulated by the employment office.
Limited is very formal, in-depth The most common interview which is
conversation conducted to evaluate the done in Arvind Limited is Formal
applicant’s acceptability. Since it is a Interviews
reputed company, it is bound to have a
excellent selection device. It is mostly face-  NON-DIRECTIVE INTERVIEW – This
to-face exchange of views, ideas and interview is mainly for the employees
opinion between the candidates and opinion to assess the code contact in an
between the candidates and interviewers. unstructured interview which is
Basically, interview is nothing but an oral designed to let the interviewee speak
examination of candidates. Interview can be his mind freely. The interviewer has

Arvind Limited Human Resource Management 12


no formal or directive questions, but is Panel Interview which is done
his all attention is to the candidate. mostly for supervisory and
He encourages the candidate to talk managerial positions. This type of
by a little prodding whenever he is interview pools the collective
silent. Through this interview Arvind judgement and wisdom of the panel
Limited finds more quality employees. in the assessment of the candidate
and also in questioning the faculties
 DEPTH INTERVIEW- Arvind Limited of the candidate. This results in
has designed the structure of selecting a candidate with many
Interview to examine the highly opinions stated in the panel which
skilled employees to intensely leads to the selection of an efficient
examine the candidate’s background, employee.
thinking and to go into considerable
detail on particular subjects of a  STRUCTURED INTERVIEW- After the
special interest and knowledge study. formal interview, this is the
These probing questions are asked structured interview, which uses
with tact and through exhaustive preset standardized questions, which
analysis, it is possible for Arvind are put to all the interviewees. This
Limited to get a good picture of the interview is also called as, guided or
candidates. patterned interview. They claim that it
is useful for the company for valid
 STRESS INTERVIEW- The most results, especially when dealing with
crucial interview conducted by the the large number of applicants
Arvind Limited is Stress Interview
which is designed to test the  UNSTRUCTURED INTERVIEW - It is
candidate and his conduct and also known as unplanned interview,
behavior by him under conditions of often done in Arvind Limited, in which
stress and strain. This type of the interview as largely unplanned
interview is borrowed from the and the interviewee does most of the
military organization and this is very talking and unguided interview which
useful to test behavior of individuals is advantageous to Arvind Limited as
when they face disagreeable much as it leads to a friendly
situations. conversation between the
interviewer and the interviewee and
 GROUP INTERVIEW- These interviews in the process. Through this approach
in Arvind Limited save busy the company can overlook key areas
executive’s time to see how the of the applicant skills or background.
candidates may be brought together It is also useful when the interviewer
in the employment office and they tries to probe personal details of the
may be interviewed in a bunch to candidate.
check their Team work and
contribution.

 PANEL INTERVIEW- The most


important interview in Arvind Limited

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4.9. THE OVERALL RECRUITMENT AND SELECTION PROCESS IN ARVIND LIMITED

ORGANIZATIONAL
RECRUITEMENT SELECTION PERFORMANCE

Internal Recruitment
 Transfers
 Promotions Step-1 Initial Screening
 Upgrading Step-2 Interview
 Demotion
 Retired employees Step-3 Reference Check
 Retrenched Step-4 Selection Test
employees
 Dependents and Step-5 Job Offer
relatives of
deceased
employees

External Recruitment
 Press
advertisements
 Educational
institutes
 Placement
agencies/
outsourcing
 Unsolicited
applicants
 Employment
exchangers
 Recruitment at
factory gate
 Labor contractors
 Employee referrals

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5. Performance Management System
5.1. DEFINITION
who would be working on what he is very
Performance appraisal is a part of effective strong in.
human resource management and involves
encouraging employee behavior through During the end of each financial year, it is
various strategies. Appraising performance expected from the supervisors and heads of
workforce is much needed as it helps keep various departments to rate their team and
them motivated as well as pushes them to its employees based on their performance
do better in terms of performance. Through and dedication towards work.
benefits, bonuses and rewards, companies
can encourage employees to take risks and Arvind Mills also follows a policy of self-
challenges which benefits them as well as evaluation which promotes employees to
the employees. assess and grade themselves based on
their own performance. The performance
5.2 PERFORMANCE APPRAISAL rating for each department varies. For
example, the sales rating system followed
Arvind Mills follows a Zero deficit policy for in Arvind Mills for the sales department is
performance appraisal. Under this policy, based entirely on the number of sales that
the immediate boss of each department have occurred due to the employee’s way of
takes in charge of appraisal and works on marketing and is also dependent on
this consistently throughout the year. Arvind geographical aspects. The geographical
Mills through its performance management area covered, and the products offered is
system has a review every year where what helps supervisors rank their
usually the supervisors of each unit are executives. There may be a few rewards
given a performance evaluation data of their and bonuses to employees for their
subordinates. The method of goal setting performance, but the general rule followed
has been followed by Arvind Mills over the in Arvind Mills is to base increments,
years. This method has helped both promotions and benefits based on seniority
employees as well as bosses to analyze and rather than merit. This has been followed
set goals that can be fulfilled within the ever since the company has been
deadline. The goal of the company is established and continued over years with
considered after which it is segmented to not much change in performance
each department and under each, the management strategies.
strengths and weaknesses of the
employees are assessed, and goals are set The team managers and supervisors are
for each. also made to allot rating points to each
employee in the team to compare and
This helps filter out and allot the right task evaluate overall performance by a team and
to the right employee with an added department. The final appraisal is decided
advantage of quality work by the employee

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by both the manager as well as the 5.3. TIMINGS OF WORK
employee.

5.3. PERFORMANCE GRADE SYSTEM To ensure that employees have a good work
life balance, the timings are strict and are
as follows:

Shift Worker timings Officer’s timings

1 7:00 am to 3:30 9:30 am to 6:00


pm pm

2 3:30 pm to 12:00
am

3 12:00 am to 7:00
Arvind Mills follows a grade system which am
is structured and segmented. The grading
system followed by Arvind Mills is as
follows: Arvind also has a well-structured leave
plan for their employees. This includes 21
Sl. No GRADE DESCRIPTION privileges leave for officers, 10 casual
leaves and 10 sick leaves. For workers, 6
1. T1 Outstanding paid leaves and medical leaves based on
performance circumstance are allotted. Arvind is known
to be cordial and empathetic towards all
2. T2 Good performance
their workforce which has helped them
retain many employees for many years.
3. T3 Average performance Other than this, travel leaves, and maternity
leaves are also allotted.

4. T4 Poor performance

Based on the grades obtained and upon


further assessment, a review is done to
decide the current position of each
employee and whether they should be
shifted to any other suitable department.
The appraisal system followed in Arvind is
known to be one of the most transparent
and accurate with no sort of biased opinion
towards any employee. This system is based
entirely on the employee and the grade is
decided entirely upon one’s merit.

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6. Training and Development
6.1. TRAINING IN ARVIND LIMITED 6.2. TRAINING MODULES

Training entails those activities that improve Their training modules can be categorized
an individual’s performance in the particular into 3 main types.
job which they currently occupy or any
other related jobs. It is an intentional effort  Job training
to convey specific knowledge, abilities or  Class room training
attitudes with a specific aim in mind.  Workshops
Whereas, development entails learning that
contributes to the growth of employees The employees are further divided into
along with the organization and is not various categories like, E ± 1, E ± 2, M ± 1, M
limited to a specific current or future job. It ± 2, M ± 3, G ± 1, G ± 2 and so on. In which,
focuses on the improvement of a person’s
general knowledge, skills and attitudes.  E stands for executives
 M stands for managers
Arvind limited is committed to the growth,  G stands for general managers
development and well-being of their huge
workforce. They believe that training is The training pattern differs according to the
mandatory not only for the fresher, it is also designation of the employee and are given
for all employees who are associated with training according to the mentioned
the company. In order to do so, the training categories.
programs are designed in a way that helps
to Implement comprehensive employee 6.3. PERSONAL DEVELOPMENT IN
engagement, foster a conducive work
environment and Consistently provide
ARVIND LIMITED
opportunities for professional and personal
development. Personal development in Arvind Limited is
covered in workshops by conducting
The following points are kept in mind before programs that improve time management,
designing a training and development communication, leadership, ethical decision
program for the employees – making and many other personal skills at
workplace. In order to make the training
 Acquire new skills process much more engaging, Outdoor
 Sharpen the existing ones training and group activities are entertained.
 Evolve as professionals Arvind limited strongly believes that when
 Enhanced performance and the potentials that have never been tapped
productivity are developed, a never seen passion and
 Boost employee satisfaction productivity is tend to unlock. They conduct
 Increase retention a wide array of development programs
across the organizational hierarchy. The
following are a few development programs
that yields to the growth of the employee

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6.4. PERSONAL DEVELOPMENT executives to hone their leadership skills,
PROGRAMS IN ARVIND LIMITED develop an attitude for success, and mound
them into able professionals who can
PRAGATI positively transform business results.

This is a development program specially SAMVAD


curated for the supervisors. It helps them
set expectations of their roles and It is an initiative that is aimed at identifying
responsibilities, manage self and others. It and creating a high potential talent pool.
focuses on Every year under Samvad, we identify and
 Enhancing self-awareness assess select employees from senior
 Develop better relationships management and take them through a
 Boosts overall capability structured development journey. It includes
 Inculcate skills to manage Front Line sharing individual reports and feedback to
Managers at the workplace the employee by a coach. It also includes
creation of a development plan and talent
IRISE review with the business head.

This is a development program specially CONTINUING EDUCATION:


curated for the employees in the junior
manager level and mainly focuses towards Arvind limited has introduced a progressive
enhancing the overall capability of individual continuing education policy for all
contributors and shift managers and help management cadre employees. It
them perform their roles more effectively. encourages them to take up higher studies
This initiative was named as iRise as it and thereby upgrade their knowledge and
signifies the rise of an individual in terms of skills.
undertaking more responsibility by
becoming more accountable to the 6.4. INDUSTRIAL RELATIONS
organisation.
The industrial relations function aims on the
IGNITE core objective of striking a harmonious
balance between personal and
This is a development program specially organizational goals. The key enablers in
curated for the employees in the managerial this journey are well-meaning intent,
level. It equips the mangers with the fairness and transparency.
requisite competence to achieve the Arvind limited has recognized worker
strategic objectives of the organization, unions at both of their manufacturing units
build skills for effective problem solving and and the IR department organizes a variety of
decision making, develop interpersonal and events and activities across locations to
leadership skills for better team engage with the frontline mangers to keep
management. them enthused.

ILEAD

This is a leadership development program


that aides the senior management

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7. Emerging HR Trends
7.1. EMERGING TRENDS IN ARVIND 7.2. PURPOSE OF HR TRENDS
LIMITED
To bring a significant social and economic
contribution to the community and on the
other hand, to build a resilient supply chain,
they follow the concept of ‘local
procurement and hiring’. It helps in

 Employment for the community’s


workforce
 Developing the skill base
 Creating industrial diversity and
growth by generating demand
Arvind limited is paving its way towards
 Supporting sustainability of
future growth and prospects by engaging in
businesses and economy through
new and effective approaches towards the
supply of goods and services.
recruitment process.
Arvind limited encourages and supports
PMKVY (Pradhan Mantri Kaushal Vikas
employment of people from within nearby
Yojana) is a government project where it
communities. Their senior management
provides opportunity for employment to
consists entirely of Indian citizens, and the
those people with PUC or SSLC. The people
employees and workmen are predominantly
with such a cadre are provided with the
from the communities where the
training for 90 days and then generated to
manufacturing facilities are located.
the full-time employment criteria.

Arvind limited has partnered with the


national skill development corporation to
impart skill training to the youth.

As per the partnership agreement, Arvind


mills will not only actively participate in
training the youth but will also give its
infrastructure, space, facilities and
machinery for training purpose. The training
will target all youth in the age group of 18 to
35 years.

Candidates from Jammu and Kashmir are


recruited and given training for 6 months of
period and are converted to full time
employees based on their performance.

Arvind Limited Human Resource Management 19


8. SWOT Analysis
8.1. NEED FOR SWOT ANALYSIS  INNOVATIONS AND TECHNOLOGY:
Arvind Mills is known to be making
their own fabrics since 1931. Today,
they are a leading business unit with
their own innovations in terms of
fabric manufacturing and production
which eases the work for their
employees. Over the years they have
expanded their boundaries and have
reached a stage where they also
have their own inhouse label,
‘Creyate.’ Along the process through
their innovations and technologies
they have reduced the burden from
Companies work on parameters around their employees.
which they build their core and have a
foundation. The internal strengths,  PRODUCTIVITY: Arvind has an
weaknesses, opportunities, and threats are extremely high potential of
identified in every company. SWOT analysis production capacity which is achieved
is essential for every company as it helps in through the efficient work skills
building its business and helps set clear cut where it serves to produce nearly 110
goals and strategies that can be met. The million meters of jeans, 34 million
SWOT analysis of Arvind Mills is as follows: meters of shirting, knitting capacity
of 10000 tons, 33 million of voiles and
a total of 21 million meters of Khaki
8.2. STRENGTHS: for an annual year.

 QUALITY: Arvind Mills is known for  IN TREND: Arvind Mills has managed
their international standards and to stay in trend with the current and
ethical behavior in terms of offering constant changes in the market.
quality products to their clients Merchandisers are ensured to have
simultaneously managing the quality complete knowledge about future
of Human Resource in their apparel trends which also helps the design
sectors. At every stage of production, team make creative and fashionable
they have employed the many products for consumers. This widely
number of quality workers where affects market growth.
there is a thorough quality check.
Thus, Arvind has established itself in  INTERNATIONALLY FAMOUS: Arvind
terms of quality over the years and Mills has a strong portfolio of
also makes the workers to rely upon domestic as well as international
their terms and conditions brands and franchises with clients

Arvind Limited Human Resource Management 20


who have a regular contact with the to which they need to constantly
company. A strong relationship built communicate with the head office
over the years with its clients has when any issue arises regarding
helped Arvind maintain these production or any other aspect.
relations and develop loyalty from
their clients.  HAPHAZARD CUBICLE SETUP:
Corporate sector usually have a
well-planned workspace where
8.3. WEAKNESSES: every employee is allotted a
workspace and positioning of
 BLEAK AWARENESS AMONG employees is structured. Whereas, in
EMPLOYEES: Since Arvind has been Arvind, the allotment does not have
maintaining a highly confidential any structure and lacks alignment.
system of corporate awareness, The working procedure is known to
employees are mostly unaware of be good but needs improvement.
many of the happenings within the
company. It is only the higher  POOR COORDINATION: Due to strict
authority that knows all the confidentiality, the communication is
whereabouts and thus to get access not as good as seen elsewhere
to any kind of information within because of which a slot of time goes
other employees is a long procedure in knowing whereabouts at the time
and needs to go through levels of of any issue. Each department
permission and access from higher prefers to keep its information to
authority. itself without communicating. The
overall profit of the company is a
 POOR BRAND EQUITY: Arvind is good amount but the coordination by
known to have many brands under it all departments could be better to
such as Park Avenue, Raymond, achieve maximum outcome.
Flying Machine, Arrow, Hanes, etc.
But the awareness and sales of each 8.4. OPPORTUNITY
has a wide difference. Some are
more famous than the others and are  MULTI-SKILLED WORKFORCE:
given more importance in terms of its Dynamic presence is noticed in the
promotion and sales. Most of the company with professionals who can
consumers are aware of brands like handle different operations and
Arrow, Tommy Hilfiger, et. But are activities. With a workforce aware of
not equally aware of brands like more than one department of
Hanes, Children’s place, etc. expertise, the company has great
opportunities in terms of capitalizing
 POOR ACCESS: The head office of multi talents which can bring about
Arvind, situated in Bangalore is better outcomes and profitability.
where all the information is known,
and issues are solved. There is lack  IGROW POLICY: this policy developed
of communication among the other by the Human Resource Department
branches regarding any updates due where employees are given a wide

Arvind Limited Human Resource Management 21


range of options to study abroad and  OTHER ALTERNATIVES: Most of the
come back to the company with wider workforce and corporates are under
knowledge and expertise. This helps the notion that IT companies can offer
the company maintain loyalty to the them better advantage both in terms
workforce as well as progress in of money as well as experience
terms of trends and upcoming because of which employees
demands. constantly leave and recruitment is
often needed. Thus, the company
 OVERSEAS RELATIONS: With foreign could think of worker friendly ways
clients and contacts overseas, Arvind and benefits to retain their workforce
mills has an added advantage of and maintain loyalty.
establishing themselves overseas
with a company after knowing the  ADAPTATION TO POLICIES: As the
methods and ways to do so with the government policies are under
help of these contacts. Thus, in a few constant change and the common
years they could be able to set up man has no say over it, the company
their own unit overseas. must find a better way to easily and
smoothly adapt to the constantly
 PROMOTING EDUCATION: Arvind changing rules.
Mills has taken up an initiative to give
training programs to the uneducated  WISE CHOICES: Since Arvind is
and the unemployed with assistance known for its exports, foreign clients
from the government. This can help may want the company to have varied
them establish themselves as well by transportation means which may
stressing on the importance of create additional costs. There may
textiles and garments and provide aid also arise the threats of losing
to those interested in their field by foreign clients if these are not
helping them develop these fulfilled. The company must thus
respective skills through programs. make wise choices in terms of
dealing with foreign clients
effectively and gain their loyalty.
8.5. THREATS:

 COMPETITORS: Since the garment


industry is ever booming and always
has demand, the competition is also
strong and requires unique
strategies to stay on top. Unwanted
business threats and calls for rivalry
can affect their day-to-day business
to a wide extent.

Arvind Limited Human Resource Management 22


9. Suggestions to Improve HR
10.
1. The Company should also concentrate on external source such as campus interview, job
fair so on.
2. Arvind can improve selection process by scrutinizing with a smaller number of selection
rounds.
3. By giving more preference experience of candidate so that profit and productivity can be
increased.
4. The company can come up with new ideologies and strategies while conducting their
interviews.
5. There should not be any discrimination while recruiting and selecting candidate.
6. Through the secondary research, some of the employees said that the response given
after recruitment is not satisfactory. If the recruitment feedback mechanism is not
effective, there is a high risk of losing good candidates to other companies. So, they can
give the response for candidates immediately stating whether they are short listed or
rejected
7. Even though there is a strict confidentiality, the coordination by all departments could
be better to achieve maximum outcome in HR.
8. The Haphazard Cubicle Setup in Arvind Limited has led to non-structure and lacks
alignment. The working procedure is known to be well-defined but needs improvement
in these areas.

Arvind Limited Human Resource Management 23


10. Conclusion

A case study of the HRM practices in Arvind Mills reveals that the organization is able to
achieve its goals because of the stringent application of its policies. The skill and potential
ability of its employees are well identified, and the organization has been able to employ the
same efficiently in various departments. The employees are motivated to realize their potential
which is well appreciated by the HR department, thereby increasing their job satisfaction and
self-confidence. The policies will adhere to the needs of the society as the employees keep up
quality of work-life and enhance their standard of living.

The HR policies attract and retain talent and train employees for challenging roles. It also
promotes team spirit thereby creating an employee organization bond. The policies designed
give fair and efficient leadership and an opportunity for expressing and voicing their views.
Arvind has also performed well in terms of having a well-structured training and development
program for its employees. A performance management system is an effective tool that the
company has come up with to kindle an interest to do better and do greater daily. Through
incentives and bonuses, the employees can go beyond their boundaries and unleash their
capabilities. The HR managers in the organization make sure that the organization reaches its
business goals and assesses current employees and intelligently predict future ones based on
business demands.

The study of HRM proves that the organization leads by example. The diligently followed
policies and vision have carved a name for Arvind Mills in the Apparel industry.

Arvind Limited Human Resource Management 24


11. Bibliography
BOOKS REFERRED

1. K Ashwathappa, (1997) Human Resource and Personnel Management.


2. Chris Dukes, (2001) Recruiting the Right Staff.
3. John M Ivancevich, Human Resource Management, Tata McGraw-Hill, 2004
4. Personnel and Human Resource Management by P Subba Rao
5. Recruitment, Retention by Alan K Campbell and Linda S Dix

ONLINE SOURCES
1. https://www.academia.edu/34059570/Performance_Appraisal_System_A_Strategic_Tool
2. https://www.cleanenergyministerial.org/sites/default/files/2018-
12/Arvind%20Limited_India.pdf
3. https://www.coursehero.com
4. http://lrc.acharyainstitutes.in:8080/jspui/bitstream/123456789/1168/1/A%20Study%20on%2
0Effectiveness%20of%20Recruitment%20Process%20at%20Arvind%20Limited%20Bangalor
e.pdf
5. https://www.scribd.com/doc/52832098/hrd
6. https://economictimes.indiatimes.com/arvind-mills-from-near-bankruptcy-to-
reinvention/articleshow/17599357.cms
7. http://www.arvindbrands.com/
8. https://in.indeed.com/cmp/Arvind-Limited/reviews?fjobtitle=Human+Resources+Manager
9. https://www.hrkatha.com/news/skill-india-and-arvind-mills-partner-to-train-20-000-
youth-by-2020/
10. https://www.skillreporter.com/2017/11/news/nsdc/national-skill-development-
corporation-partners-arvind-limited-train-20000-youth-pmkvy/
11. https://www.arvind.com/pdf/ArvindSR.pdf
12. https://www.arvind.com/people

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