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CLARIANT CHEMICALS INDIA LTD.
“PEOPLE” is the most important and valuable resource every organization has in the form of its employees. Dynamic people can make dynamic organizations. Effective employees can contribute to the effectiveness of the organization Competent and motivated people can make things happen and enable an organization to achieve its goals. Organizations have now started realizing that the systematic attention to human resources is the only way to increase organizational efficiency in terms productivity, quality, profits and better customer orientation. HR can help deliver organizational excellence by focusing on learning, quality, teamwork, and through various employee friendly strategies. My assignment has been accomplished in one of such MNC’s – CLARIANT CHEMICALS (better known as CCIL). This is one of the best companies in manufacturing of speciality chemicals headquartered in Muttenz near Basel Switzerland This assignment has been accomplished in two parts:
The first priority was to understand the working of an HR department
and hence the first part of the project report is about the HR Processes, Policies and Systems at CLARIANT CHEMICALS INDIA LTD. (CCIL). The various processes like recruitment & selection, induction, training & development, compensation & benefit etc. are explained as understood by me.
The second half of the assignment report is focused on analyzing the
trends in attrition at CCIL.
1 1.1 OBJECTIVE OF THE Assignment
paper. Cla r ia nt (In dia ) ltd ColourChem Ltd. packaging and agrochemicals industries in India. P BT ia Ind td. the acquisition of Hoechst specialty chemicals business in 1997 brought Colour-Chem Ltd and its subsidiaries Vanavil Dyes & Chemicals Ltd. is a subsidiary of Clariant International. that have played invaluable role in the development of textiles. 2. various policies processes of HR Dept at Clariant Chemicals India Ltd. into its fold. the affiliates of Clariant in India were merged to form Clariant Chemicals (India) Limited.o To understand the functions. In 2006. printing inks. with the foundation of Sandoz Products Ltd. COMPANY PROFILE Clariant Chemicals (India) Ltd. Clariant’s presence in India through its affiliates goes back more than 5 decades. and Kundalika Investments Ltd. CCIL is a global leader in the field of specialty chemicals and has come into existence from the 1st of April 2006. working. L Pv 3 . paints. plastics.’ and o To understand the difference in working of HR in manufacturing industry as compared to other industries. o To understand the reasons for attrition at CCIL. Its journey began in 1947. All were well-respected specialty chemical companies. leather. Thereafter the acquisition of BTP plc in 2000 led to integration of a fourth company. t.
1 HUMAN RESOURCES AT CCIL: CCIL follows a centralized system for HR in India. e Ch d Lt Ku n ka da In li Lt v. CLARIANT CHEMICALS (INDIA) LTD OVERVIEW OF HR PROCESSES / POLICIES 3. 4 . Of the 1195 permanent employees at CCIL. 600 are the managerial staff while 186 supervisors and 409 workers consist of the remaining. At CCIL. CCIL has two main types of employees: 1) Contractual Employees 2) Permanent Employees – Employees on Clariant payroll CCIL has a total of 2000-2500 employees of which 1195 are permanent staff while others are on contract basis. All the activities are started and co-ordinated through their corporate HR office at Balkum (Thane). d.vil na & Va s e dy m. HR is considered as one of the most important resource for the organization.
It 5 . I have restricted my findings to the permanent managerial staff. Band Structure for management staff in CCIL: The band structure decides the kind and the scope of functions of a particular individual. The organizational structure followed in CCIL is a Divisional Structure. In short it is a skeleton of the organization. 3. It illustrates relationships between different units and line of authority among supervisors and subordinates. A job description for each position is framed to bring in more clarity to each position. Here in each Division/Function is further classified on the basis of different positions.2 ORGANOGRAMME/ORGANIZATION STRUCTURE Organization structure is a way in which an organization divides its manpower into distinct and co-ordinated tasks. The CCIL Intranet gives access to these organogramme through OrgPublisher.The scope being too vast. There are around 57 positions for each function.
accommodates all the management positions of CCIL in the chart.Helps in Succession Planning . The Organogramme can be better understood with the following diagram: 6 .Identification of candidates for promotion -Grooming of potential candidates to help them with career growth and development .Analysing Training and Development needs and imparting the same. The following points depict the importance of Organization Structure: . Thus it gives a comprehensive view to the entire structure.
1 Recruitment & Selection Process 7 .3.CCIL Business Textile: INDIA 3.3 HR PROCESSES AND SYSTEMS IN CCIL 3.
does not happen. The recruitment process starts with the arising of a vacancy in the organization. colour. and sex. 4) To appoint the Right candidate for the Right job. 3) To ensure that all candidates are assessed objectively and fairly. The policy is framed in a way that it ensures consistency and equal opportunity. CCIL aims at:1) Merit based Selection of candidates. With such a policy in place. A vacancy can arise in the following ways: • • • • • Transfer Resignation Termination Death New Position created (due to expansion of business) 8 . national origin etc. 2) Select and appoint the most suitable candidate.CCIL aims in keeping its Employment policy non-discriminative. age. religion. Utmost care is taken to check any kind of discrimination based on caste.
Internal Recruitment:There is a policy of INTERNAL JOB POSTINGS. Herein. the management posts certain vacancies through e-mail to all senior managers and request them to 9 .
Manpower requirement prepared in consultation with Business/Function Head HR raises hiring request through online system Interested Employees apply HR shortlists CVs and sends to Div/Fun Heads HR posts vacancies Permission of current Div/Fun Heads Accepte d Interviews conducted Rejecte d Divisional Heads shortlists the candidates External sources are used Transfer orders given INTERNAL RECRUITMENT PROCESS 10 . All management employees with a minimum experience of two years in their current positions can apply to the postings.communicate the same to their reportees. Also vacancy gets displayed at sites /branch office’s notice boards. A subordinate applying for any position has to inform his manager or superior in his current division about the same.
This thus becomes a kind of motivation factor for the employees. 3.This system provides the existing employees an opportunity to apply for higher posts as well as for vacancies in other departments thus allow them a take up more challenging job profile / responsibilities in other/same department. The information would be kept in the HR Database. Employee Referrals Program CCIL has an employee referral program where the current employees can send in referrals to the HR department. Such referrals can be made by the employees even when a vacancy is not there. At CCIL. external recruitment is done in mainly two ways: Advertised on the Clariant website Internal Data base Through consultants Print Media 11 . for a vacancy in the company. External Recruitment External recruitment is aimed to attract available talent outside and filling up vacancies through external sources. 1.
collated by HR YE S Select ed NO HR conveys Regret 12 .Manpower requirement received from Div/Bus Head HR raises hiring request through online system Search Agency Employee Referral Job Portals External recruitmen t Requisitio n rejected Requisitio n approved Applications screened by HR & then by the concerned Division / Function Screene d CV’s ShortListed HR schedules interviews & informs panelist & candidates Salary fitment done by HR & concerned Division / Function Head & communicated to the candidate Offered packag e is accepte d YES HR issues appointment letter on joining Hr Issues offer letter subject to clearance of medical examination Interview Rounds with Bus/Div Head & HR HR updates database NO Panel ratings. recommendations. comments etc.
Placement Consultants: Consultants are another option for the company to get good candidates.4Unsolicited Resumes: CCIL receives resumes from jobseekers in dozens daily which also acts as a potential source of recruitment. The cost of the medical examination will be borne by the company. 4. according to the policy guidelines. Contractual Employees CCIL also have around 109 contractual employees who are under the contract of Team Lease. HR executive from CCIL co-ordinates with them in case of discrepancy. AT CCIL. Joining Process 13 . it is the process of screening / verifying a person's background information prior to employing him in your organisation. Reference Checks As the name suggests. Pre-employment Medical Examination All the selected candidates are required to undergo a medical examination prior to joining the organization. Hiring an undeserving candidate can unnecessarily increase costs. All the salary disbursements details are taken care of by them. An appointment is scheduled with the identified doctor by the HR. This would assist the selection process. They are thus known as associates. 6. Travel Reimbursements All the outstation candidates who are invited for the selection process with prior approval from HR head will be reimbursed return fare and associated miscellaneous expenses. all the candidates who have been selected for the final round of interview are supposed to provide the HR dept. These employees work for CCIL but are under the payroll of Team Lease. reference checks are made compulsory. his conduct and his professional capabilities are checked. two professional references. harm the organizations’ harmony and put confidential information into jeopardy and thus. This ensures that before the candidate joins in. Then the medical report is directly forwarded to the HR department.
On receiving the appointment letter. The Induction Schedule comprises of the respective Business/Function with respect to the following: --Organization Structure of the Div / Function --Overview of Business / Function --Salient features / Characteristics of each Business / Function --Overview of Products & Sales growth (for Businesses) --Successful Business initiatives during recent past / Major Challenges ahead --Issues (if any) The input in the program is provided through classroom presentation. his duties and responsibilities.Upon joining. He is given targets and goals are set for him. Probation An employee joining CCIL is on a probation period of six months. If not he is given a clear idea of the same. Induction and Orientation The main objective of induction and orientation is to ensure full utilization of the inherent skills of the new entrants and provide them with comprehensive foundation needed for efficient performance in their job. the employee is required to fill in a “Check In form” and provide relevant information. Employees need to fill in this form on the date of joining itself. The original copy is retained by the employee and one signed copy is handed over to HR for personal file and pay roll. The appointment letter is issued upon joining which clearly specifies the conditions of employment. scope of work. 14 . Herein he is expected to understand his work profile. the HR makes sure that the candidate is completely aware about his job profile and his reporting line. Also he has to be able to adjust himself with the work culture at CCIL and the people around. discussions and sharing of experiences which will be followed by visit to various departments. He is also required to submit various documents to support this information.
Herein the Key Result Areas (KRAs) have to be set by each executive every year. pay for performance. It includes goal setting. 3. Mid Year Review: The appraise reviews whether he has accomplished his performance objectives. b. Each of the competencies is defined in the Appraisal form for the ease of understanding of the appraiser. These are also based on the Clariant Management Competency Model as mentioned below.2 Performance Management System (PMS) Performance management is the process encompassing all activities related to improving employee performance. productivity and effectiveness. career management and corrective action. The PMS followed in CCIL was as follows: ELEMENTS IN PMS: 1.3. Competencies applicable are identified by the Appraiser while approving performance objectives. The objective can be either quantitative or qualitative. 2. Performance objectives: a. his superior evaluates him based on various competencies and skills required for the particular job and also other competencies that management personnel should possess. Training & Development Needs are identified at the beginning of the year under 3 categories: o Job/Technical Skills o Behavioural Skills o Others c. He uploads relevant supporting against each KRAs and puts his comments in ‘Self Appraisal’ 15 .At the end of the probation period.
3. BUSINESS SKILLS Understanding and conducting Business -striving for profitable and sustained growth . Also one-to-one Appraisal meeting is organized wherein Appraiser discusses and gives feedback to the appraise. He also reviews whether Training & Development Plan and been forgetting committed to success complied with. The appraiser also reviews the status of the Training & Development Plan. Competency Evaluation and gives rating. 16 . Final Review is also done in the lines of Mid-year Review. Final Review 2. Interpersonal skills Herein the appraise reviews accomplishment Personal Skills of Performance Objectives and records the achievement against set Showing appreciation without Being motivated has target. The plan followed remains the same. Similarly the Reviewer also reviews the progress of the plans and gives his feedback. own goals 3.Appraiser then reviews the Self Appraisal comments put by the appraisee and gives his feedback on the same.
both what is accomplished and how it is done. Finally he considers areas of professional growth and appropriate action. The manager clearly defines his expectations and realistic goals. He then records the commitment of his subordinates and also identifies their competencies and behavioral patterns. Final Appraisal: -Herein the manager evaluates the achievement levels: • For each business objective • For the behavioral effectiveness items • And professional growth targets -He then establishes joint understanding of how performance is perceived. Interim Review: In this stage the manager provides feedback on performance and development. 17 . The subordinates get an opportunity to review his progress and to adjust objectives.The process then followed is: Setting Individual Objectives: These objectives are set through a dialogue between each manager and their subordinates at the beginning of the year. Also the manager suggests corrective measures to overcome the problems.
Cash Allowances 1.3. Perquisites & Benefits Details of Fixed Compensation Basic: This component of the compensation directly impacts the statutory deductions and HRA only. 5. Special Allowance 18 . Conveyance Allowance 3.Role of Coaching: CCIL • • • gives a lot of importance to the role of coaching.3 Compensation and Benefits: CCIL believes that compensation is an employer’s human capital investment strategy that considers all aspects of rewards in creating a competitive compensation package for the workforce. Variable components are: • Local Bonus Plan • Sales Incentive Scheme • Top Performer Bonus 3. Fixed • • • components includes: Basic Cash Allowance Retirals 2. It is – An on-going guidance to help people do their work more effectively A planned approach to provide feedback and encouragement Consists of periodic feedback sessions that directly relates to performance 3. House rent Allowance (HRA) 2. Medical Assistance 4. thereby improving business outcomes. Reimbursement of Mediclaim Premium. The compensation structure: 1.
Retirals 1. location 2. There are 3 major processes in Payroll Management: 1. Herein the following details about the employees are updated: o Personal details . This database contains all the relevant information about the employee. 19 . Cost Centre. appointment letter along with the salary working is submitted to the payroll section which in turn updates the database. This software gives complete information to the time office about leave. Provident Fund 2. This card has to be swiped everyday on entry and exit from the company premises.DOB. details of dependents o Salary with the breakup of different components o Reporting line. These details are maintained by the time office which is there at every site. Gross Pay: Basic +Cash Allowance Process Flow CCIL has a centralised system for payroll management. Employees in the Functional Band and above are entitled for a company maintained car which has to be used as a work tool. Attendance Recording and Payroll: Every employee is given a swipe card on his joining the company. Superannuation 3. There is band wise eligibility for the cumulative benefit of these schemes. Master Maintenance: This process starts with the new employee joining the organization. over time. Gratuity Perquisites and Benefits include Housing Loans and higher education loan for employee’s children. The check in form. Similarly telephone connection for official purposes is provided to certain employees irrespective of their bands. It uses SAP as the software to maintain its database and process the payments. Also his payment details are entered into the system the moment he joins the company. half days taken and the outdoor activity. The entry and exit time gets automatically recorded in VBSTAR.
skill and attitude To achieve individual growth Need for cross functional managers Prepare employees for higher level jobs CCIL too recognises the importance of training for its employees and has a very systematic approach towards it. Confirmation of the same is obtained from the bank. Variable Inputs Processing: Apart from the regular fixed data there can be certain variable inputs like canteen dues. Acquiring the requisite knowledge.3. Need for Training and Development in an Organization: • • • • • Contributes towards organizational objectives. Training is an act of increasing the knowledge and skills of an employee which they need to perform their jobs.3. The significance and value of training has been recognised by the corporate world to a great extent. Payroll Processing And Disbursement Process: o Direct bank transfers-Wherein payment details are uploaded in banker’s website. direct bank transfers takes place.4 Training and Development Training and development is perhaps one of the fastest growing fields in any company. o Direct Cheques-Wherein cheques are issued directly in the employee’s name. In most cases. 3. Then this data is uploaded into the SAP system which deducts the same from the salary of the respective employees. 4. credit society dues etc which are maintained by the Time Office for respective employee in a specific format. Departmental Needs Promotion or Transfer Probation Appraisal Succe ssion Planni ng Recom mendati on by Immedi ate Superior Employ ee self develop ment plan PMS 20 .
5 Leave 21 .3.Training Needs Identification Compilation of data by HR Training Program Designed Circulation of Training Calendar Nomination & Confirmation Check INTERNAL EXTERNA Training Contents Application at workplace Organising Training Program Evaluation of Training Program Updating Personnel File about training undergone. The leaves granted to the employees will be of four kinds: Refinement of Training Program 3.
3. Privilege Leave is weekly offs and paid holidays which fall during the period.CL is not encashable and cannot be accumulated.6 Separation and Exit Management The employees may be separated from the organization due to the following reasons: -Resignation -Retirement -Death -Termination by Organization 22 .Type of Leave Casual Leave (CL) Sick leave (SL) Privilege Leave (PL) Maternity Leave (ML) Number of Days 7 days per year 10 days per year 30 days per year 84 days per occasion Casual Leave is granted for urgent. Sick Leave is allowed if the executive is sick and unable to report on duty. An executive can accumulate PL up to 120 days. unforeseen personal reasons. Apart from this at the time of final settlement. Maternity Leave is allowed to female executives for 84 days which includes weekly offs and paid holidays. Medical certificate is compulsory. PL in excess of 120 days will be encashable automatically after the end of the calendar year. SL can be accumulated up to 50 days but cannot be encashed.ML will be allowed only twice during the service tenure. the limit for PL is 135 days. It refers to planned holidays which are applied to the management at least 15 days before the date of commencement of leave. Unavailed CL gets lapsed at the end of the year. 3.
During this time he has one-on-one dialogue with the HR manager who tries to understand the reason for his resignation. He also needs to fill in an exit interview form. the HR after discussions with the Division head can relieve him earlier. It is the responsibility of the employee to get clearance from the various departments on the check out form and submit it to the HR for the final settlement. VRS and employee leaving due to end of contract are not considered as attrition. After the receipt of the resignation. The word Attrition means. Exit Interviews: CCIL has a policy to conduct an Exit interview for the employees. Every employee is required to adhere to a notice period mentioned in the appointment letter. he has to contact the HR dept for his check out formalities. 4. the HR would discuss this with the division head and then convey the acceptance of the same to the employee. a reduction in the number of employees through resignation or separation at the employees will. Retirement. 23 . These are conducted for employees who have resigned from their posts and have decided to leave the organization. ANALYSIS OF ATTRITION TRENDS 4. can give his resignation letter to his Division / Function head and the same will be forwarded to the HR after comments from the division head. However under certain circumstances.1 WHAT IS ATTRITION? Attrition has been a major concern for most of the companies in the current competitive scenario.Resignation: An employee who is not willing to continue his service in the organization. Once an employee resigns.
4. a comparison of half yearly data for 2006. family reasons etc. Attrition leads to dual loss to an organization: • • Firstly.2 ATTRITION AT CCIL: CCIL belongs to the manufacturing sector and thus attrition is a major concern.Attrition rate is the rate of shrinkage in size or number. For easy understanding of the trend. Some of these are lack of co-operation from superiors or subordinates. organization culture. Secondly it employees a new employee and thus needs to incur costs on them. But apart from the salary issues there are many reasons why people resign. As very well known. In order to understand the reasons for attrition at CCIL a classification of the data is done and represented in the form of various tables and charts. salary has always been a major issue in the manufacturing sector. OF EMPLOYEES 2007 2008 37 31 43 24 . The following data shows the number of people who resigned (management cadre). company loses on a talent and thus costs incurred on them are a waste. MANAGERIAL STAFF RESIGNATIONS (HALF YEARLY) 2006 NO. 2007 and 2008 has been made. It is the mathematical representation of the attrition in a particular organization or an institution.
we need to bring it to measurable terms. 25 . There is no standard formula to calculate the attrition rate of a company. Attrition in any particular organization can be quantified by finding out the attrition rate for that organization. But comparing the data for 2008 to both the years. it can be noted that this year has the highest number of resignees. So if we want to improve attrition. This is because of certain factors as: • The employee base changes each month. After this it can be analysis can be done as to where is the maximum attrition happening and then finding out reasons for the same to form a retention strategy. CALCULATING THE ATTRITION RATE: “WHAT CANNOT BE MEASURED CANNOT BE IMPROVED’’ is an old management aphorism. The trend line in the above graph shows an increasing trend based on simple average.There was a subsequent reduction in the number of resignees in the first half of 2007 as compared to that in 2006 for the same period.
month 26 .85 approx 6% 86/632 X 100 = 14% Attrition Rate 2007: (Half Year) (Annual) 31/596 X 100 = 5. In some cases. of employees who left in the year / Average employees in the year) x 100 Attrition Rate 2008 (Half Year) : 43/601 X 100 = 7. In order to compare it to that of the previous years. Thus. I have attempted to make various comparisons classifying the number of resigned band wise.20 approx 5% 57/596 X 100 = 9% The trend in attrition rate also shows an increase in the same in the current year. attrition of poor performers may also not be treated as attrition. finding out the rate of attrition for 2006 and 2007 based on half yearly data. In order to understand the problem clearly.15 approx 7% The above percentage is based on the data for the first half of 2008. it is important to have the data at par. Attrition Rate 2006: (Half Year) (Annual) 37/632 X 100 = 5.• • Many firms may not include attrition of fresher’s who leave because of higher studies or within three months of joining. Attrition = (No.
Their systems and procedures are well defined and work is made easy. Attrition due to competition. 5. all the systems are already in place.wise and division wise. Lack of Team spirit. It also has the responsibility to bridge the gap between the various departments in the organization. employees might not think much and go on with the processes and systems as they are. at CLARIANT CHEMICALS INDIA LTD. CONCLUSION The Human Resource Dept.3 REASONS FOR ATTRITION Form the exit interview forms and the comments of the HR Manager the overall reasons for attrition can be summarised as follows: Better prospects outside CCIL in terms of salary and responsibilities. 27 . They may not think rationally. 4. I would ultimately conclude that the HR department at CCIL has to be a link between the employees and the management. This can lead to stagnation. But at times this proves as a disadvantage to the company because. Though CCIL has come out from a merger phase recently. HR needs to change its role from a facilitator to a strategic business partner. No career growth. Lack of support from Superiors. No role clarity. is a perfect example of integration of HR and systems.
FACULTY. DAV INSTITUTE OF MANAGEMENT. ASHWATHAPPA . “HR A CAUSE OF ATTRITION” • MS.COM/VISIT/VIEWARTICLE • SUDIPTA DEV “IS ATTRITION ALWAYS BAD FOR AN ORGANIZATION?” HTTP://WWW.SHTML 28 . LYNN WARE “THE CHALLENGE OF RETAINING TOP TALENT: THE WORKFORCE ATTRITION CRISIS” • MS.COM/20071029/TE CHNOLOGYLIFE01. RITU ARORA. SUMANA BOSE.AUTHORSDEN.“ HUMAN RESOURCE MANAGEMENT ” ARTICLES: • BRUCE FERN AND B.EXPRESSCOMPUTERONLINE.References ACADEMIC BOOKS: • K. “MANPOWER RETENTION IN BPO INDUSTRY” PUBLICATIONS: • CLARIANT HR MANUAL • CLARIANT ANNUAL REPORT – 2007 ARTICLES FORM THE WEB: • MARC CARROLL “GIVING ATTENTION TO PREVENT ATTRITION” HTTP://WWW. SINHGAD INSTITUTE OF BUSINESS MANAGEMENT AND RESEARCH.
citehr.com • www.WEBSITES: • www.clariantindia.com • www.clariant.com 29 .
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