Sample by Mentor

A PROJECT REPORT ON
“PUTTING HR ON BALANCED SCOREDCARD”
A CASE STUDY OF
GAIL (INDIA) LIMITED
GAIL JUBILEE TOWER B-35&36,SECTOR-1
NOIDA-201 301(U.P.)
SUBMITTED TO
CENTRE FOR MANAGEMENT EDUCATION
MANAGEMENT HOUSE, 14 INSTITUTIONAL AREA
LODHI ROAD, NEW DELHI – 110003
AUGUST 2016
BY
SURBHI AGARWAL
REGISTRATION NO. 891520005
GUIDED BY
MR. RAJENDER CHAUDHARY
MANAGER (HR)
FOR THE PARTIAL FULFILLEMENT OF
Post graduation certification in management

Preface
In spite of the theoretical knowledge gained through classroom study, a person is

incomplete if not subjected to practical exposure of real corporate world and may
have to face hurdles, which will be difficult to overcome without any first hand
experience of business.
There is a famous saying “The theory without practical is lame and practical
without theory is blind.”
Alignment of the Human Resource with the overall strategy of the company is
a very big and toughest challenge for the company.
Human resource is an important part of any business and managing them is an

important task.
Our institution has come forward with the opportunity to bridge the gap by
imparting modern scientific management principle underlying the concept of
the future prospective managers.
To the emphasis on practical aspect of management education the faculty of

AIMA has with a modern system of practical training of repute and following
management technique to the student as integral part of PGCM.
ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.”
On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this endeavor. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project.
It gives me great privilege and honour to offer thanks to all those who helped
me in my project. I would like to extend my sincere thanks and gratitude to
my project guide MR.RAJENDER CHAUDHARY for acting as a mentor and
as a catalyst during entire duration of my project. I also thank him for
providing continuous cooperation support and expert guidance throughout my
project, whenever needed.
I also thank all the DEPARTMENT MANAGERS for showing keen interest
in the study and for giving their valuable suggestions from time to time, as
and when required and also for rendering all possible help during the time
when the study was conducted.
I express my cordial thanks and acknowledgement to all front hand employees

for taking out time from their busy schedule and providing me with relevant
information, which contributed significantly in my project analysis and
increased my knowledge in a totally new sphere. It was great interacting with
the customers of various frequencies and learning from their experiences.
Thanking You
SURBHI AGARWAL
CONTENT
Chapters Page no
Synopsis 6-10
A. Theoretical perspective 13-47
1. Definition 13
2. How can the balanced scorecard be applied in HR? 14-15
3. Why build a balanced scorecard 15
4. Effective performance management with balanced scorecard 16-17
Development of scorecard thinking
1.1 From performance measurement to strategic management:…………. 16-17
1.2 strategy mapping………….. 17
1.3 effective scorecard…………. 17-18
5. The HR architecture as a strategic assests? 18
1.1 The HR function……………….. 19
1.2 The HR system………………….. 19-21
1.3 Employees behavior………….. 21-22
6. Theory behind the balanced scorecard 22-27
1.1 Background of the concept of balanced scorecard…….. 22-27
1.2 Defining critical success factors and measures…………… 27-36
1.3 The four perspective : cause and effect relationship………. 36-37
1.4 The balanced scorecard model………………………………………….. 37-39
1.5 Balanced scorecard as a measurement tool………………………. 39-40
7. Introduction to human resource management 40
1.1 Definition & Meaning:…………………………………….. 40
1.2 Objectives of HRM or characteristics or nature……. 40
1.3 Evaluation of HRM………………………………………………. 41-42
1.4 Scope/function of HRM……………………………………….. 42-44
1.5 Summary………………………………………………………………. 45
2. Company introduction 31-55
2.1 company overview of Mahindra logistic LTD. 32
2.2mahindra logistics reportedly prepares for IPO before 2018 32
2.3 Mahindra group plans Mahindra logistics IPO 32
2.4 Mahindra logistics seeks Acquisitions 32
2.5 key executives for Mahindra logistics LTD. 33
2.6 Mahindra own words 34
2.6.1 Its vision, mission and values 34
2.6.2 Innovation 35
2.6.3 About the brand 36
2.6.4 Subsidiaries 37
2.6.5 Industries 38-39
2.6.6 Sources 40-41
2.6.7 Technologies 42-49
2.6.8 Mahindra’s competitors 50
2.6.9 Supply chain management 51
2.6.10 Mahindra logistic LTD. And job satisfaction 52-55
3. Hypothesis 52-62
3.1 case study 57-62
4. Research methodology & data interpretation 63-83
4.1 primary methodologies 64-78
4.2 secondary methodologies 79
4.2.1 Sources of secondary data 79
4.2.2 Example to understand job satisfactions text thoughts 79-80
4.2.3 Mahindra logistic LTD. Policies and welfare programmers 80-83
5. LIMITATIONS OF THE STUDY 84

6. Conclusion 85
7. RECOMMENDATIONS 86
8. BIBLOGRAPHY 87
GUIDE DETAILS
Name - RAJENDER CHAUDHARY
Email id - rc@gail.co.in
Contact no. - 9873552547
Designation - MANAGER (HR)
Org. Address - GAIL (INDIA) LTD.
Education - MA, MBA, LLB, PGDPM, PGDLL
Experience - 20+IN MANAGERIAL CAPACITY

SYNOPSIS
INTRODUCTION
The Balanced Scorecard concept is a management and measurement system which

enables organizations to clarify their vision and strategy and translate them into
action. The goal of the balanced scorecard is to tie business performance to
organizational strategy by measuring results in four areas: financial performance,
customer knowledge, internal business processes, and learning and growth. These
perspectives provide relevant feedback as to how well the strategic plan should be
executed so that adjustments can be made as and when necessary.
The HR scorecard is a measurement as well as an evaluation system for redefining
the role of HR as a strategic partner. It is based on the balanced scorecard
f r a m e w o r k developed by KAPLAN AND NORTON and is set to revolutionarize
the way business perceives HR. Based on various studies, it can be concluded that
firms with more effective HR management system consistently outperform the
competition.
Why I choose this topic?
 This topic is related with my specialisation in HRM
 My Guide Mr. Rajender Chaudhary also suggested me for this topic and its
applicability in the new competitive business environment.
 The balanced scorecard includes financial measures that tell the results actions
already taken.
What is the Scope of research?

As I write this balanced scorecard step by step, the concept itself has been with us
for just over 15 years. Born from a research study conducted in 1990, the balanced
scorecard has since become a critical business tool for thousands of organization
around the globe. In has a balanced scorecard in place. Further evidence of the
utility of the balanced scorecard is provided by The Hackett Group, which
discovered in 2002 that 96 percent of the nearly 2,000 global companies it
surveyed had either implemented or planned to implement this tool.
What is the Aims &Objective of research?
1. To highlight the importance of Balanced Scorecard as a measurement tool.

2. To find out the need of Balanced Scorecard in today’s competitive
environment.
3. To find out how Balanced Scorecard is useful for developing the Human
Resource as a strategic partner.
4. To find out how Balanced Scorecard can be implemented for Human
Resource Management
Hypothesis:
Strategy is a hypothesis
The essence of strategy is choosing to perform activities differently from the

competitors so as to provide a unique value proposition. A sustainable strategic
position comes from a system of activities, each of which reinforces the others.
The balanced scorecard builds a view of strategy based on hypothesis, as strategy
implies the movement of an organization from its present position to a desirable
but uncertain position. The scorecard enables the strategic hypothesis to be
described as set of cause and effect relationships that are explicit and testable,
and allow identifying the activities that are the drivers (lead indicators) of the
desired outcomes (lag indicators).
Research Methodology
The balanced scorecard methodology builds on some key concepts of previous
management ideas such as TQM (Total Quality management) including customer
defined quality, continuous improvement, employee empowerment and
primarily measurement based management and feedback.
 RESEARCH DESIGN: The research design used for this study is, of the
descriptive type. Descriptive research studies are those studies which are
concerned with describing the characteristics of a particular individual or a
group.
 POPULATION: The total element of the universe from which sample is

selected for the purpose of study is known as population. The population of
my research is the employees of company.
 SAMPLE SIZE: In this research only a few items can be selected form the
population for our study purpose. The items selected constitute what is
technically called a sample. Here out sample size is 40 employees from the
total population to conduct the study.
 DATA COLLECTION: The research is based on primary and secondary data and
the data is collected from various websites, Journals, Magazines, Articles and
Research Paper.
 The research approach: Survey Method
 The research instrument: Questionnaire Method
 The respondents: Executives, Sr. Executives, Assistant Managers, Managers

and Top Management of various departments.
 QUESTIONNAIRE SCHEDULE: Questions are framed in such a way that the

answers reflect the ideas and thoughts of the respondents with regard to level
of importance of balance scoreboard in today’s competitive business
environment. The questionnaire has total 11 questions and Likert scaling
techniques has been used for each question.
 5. Strongly Disagree
 4. Disagree
 3. Neutral
 2. Agree
 Strongly Agree
Strongly Somewhat Neither AgreeStrongly
Disagree Disagree nor Disagree Agree
Do you agree that HR departments no longer are simply

there to hire employees.
Like other line deptts.in an organization HR also

significantly contributes in direct profitability of the
company.
Does the HR department align human resources and

management practices, policies and procedures with the
organization strategic objectives.
Human resources is the key for the success of balance

scorecard.
Do you agree that HR deptt should also have technical

manpower.
Open working environment is a pre-requisite to HR

balanced scorecard
Two way communication is always good for a congenial

working atmosphere
Acquisition of timely information plays a vital role in

modern day business.
Adaptability to change out of the result of the surveys

conducted through balanced scorecard actually results in
achieving the strategic objectives of the organization.
Staff development, payroll adjustments, increased benefits

or employee compensation and motivation programs
carried out by HR are a part of balanced scorecard.
Sample (11 question)
AJAY KUMAR GARG INSTITUTE OF MANAGEMENT Page 1

Strongly Disagree Neither Agree nor Agree Strongly Agree
Disagree Disagree
Human capital is largely intangible and

difficult to measure as a component in a
company’s business success.

INTRODUCTION
The new economic paradigm is characterized by speed, innovation, quality and customer
satisfaction. The essence of the competitive advantage has shifted from tangible assets to
intangible ones. The focus is now on human capital and its effective alignment with the
overall strategy of organizations. This is a new age for Human Resources. The entire system
of measuring HR’s contribution to the organization’s success as well as the architecture of the
HR system needs to change to reflect the demands of succeeding in the new economy. The
HR scorecard is a measurement as well as an evaluation system for redefining the role of HR
as a strategic partner. It is based on the Balanced Scorecard framework developed by Kaplan
and Norton and is set to revolutionize the way business perceives HR.
Based on various studies, it can be concluded that firms with more effective HR management
systems consistently outperform the competition. However, evidence that HR can contribute
to a firm’s success doesn’t mean it is now effectively contributing to success in business. It is
a challenge for managers to make HR a strategic asset. The HR scorecard is a lever that
enables them to do so. Implementing effective measurement systems for intangible assets is a
very difficult task and demands the existence of a unified framework to guide the HR
managers. It is this difficulty that has been the prime reason why managers tend to avoid
dealing with intangible assets as far as possible. In the process firms under-invest in their
people and at times invest in the wrong ways. Another difficulty is, managers cannot foresee
the consequences of their investments in intangible human assets in a well-defined
measurable manner and they are not willing to take the risk. Thus, the most effective way to
change this mindset is obvious – to build a framework just like the balanced scorecard, which
has sound measurement strategies and is able to link HR functions, activity and investment
with the overall business strategy. The HR scorecard framework was specifically designed
for these purposes.
Traditional financial performance metrics provide information about a firm’s past results, but
are not well suited for predicting future performance or for implementing and controlling the
firm’s strategic plan. By analyzing perspectives other than the financial one, managers can
better translate the organization’s strategy into actionable objectives and better measure how
well the strategic plan is executing.
There has been growing criticism of financial measures in performance evaluation system in post
reform India as they are historic in nature and lack futuristic outlook. Their relevance in the
information age, when the companies are building internal assets and capabilities, is questioned. The
situation may worsen when the firm is compelled to pursue short-term goals at the cost of the
organization’s long-term objectives.
Kaplan and Norton developed an innovative and multi-dimensional corporate performance

scorecard known as the Balanced Scorecard. It compels the firm to align its performance

measurement and controls from the customers’ perspective, internal business processes, and
learning and growth perspectives and investigate their impact on the financial indicators. There are
arguments that the Balanced Scorecard should be ‘unbalanced’ based on the strategy followed by
the firm. The corporate experiences with the implementation of the Balanced Scorecard suggest
mixed results. In this article, the authors a) identify the extent of the usage of the Balanced
Scorecard by corporate India; b) explore whether Indian firms use all the four perspectives, namely,
customer, financial, internal business, and learning and growth in their performance scorecard; c)
capture the management motivations for implementation of the Balanced Scorecard; d) identify the
key performance indicators in different perspectives of the performance scorecard; and e) evaluate
the performance of the Balanced Scorecard as a management tool.
The major findings of this study are as follows:
 The Balanced Scorecard adoption rate is 45.28 per cent in corporate India
which compares favorably with 43.90 per cent in the US.
 The financial perspective has been found to be the most important

perspective followed by customers’ perspective, shareholders’ perspective,
internal business perspective, and learning and growth perspective. The
environmental, social, and employees’ perspectives also figure in it.
 The expense center budgets, brand revenue/market share monitoring, profit

center, and transfer pricing mechanism are the other performance
management tools used by the Indian companies.
 Corporate India monitors the indicators as per ISO 14000 norms in the
environmental and social perspectives of the performance scorecard.
 The difficulty in assigning ‘weightage’ to the different perspectives and in

‘establishing cause and effect relationship among these perspectives’ has
been found to be the most critical issue in the implementation of the
Balanced Scorecard in corporate India.
 Most companies claimed that the implementation of the Balanced Scorecard

has led to the identification of cost reduction opportunities in their
organizations which, in turn, has resulted in improvement in the bottom line.

Theoretical
perspective
1. Definition
The Balanced scorecard is a strategic planning and management system which takes into account
non- financial aspects of corporate performance, such as customer satisfaction and business processes,
to create a complete picture of how the company is likely to perform in the future.
A balanced scorecard is a performance metric used in strategic management to identify and improve
various internal functions of a business and their resulting external outcomes.it is used to measure and
provide feedback to organizations. Data collection is crucial to providing quantitative results, as the
information gathered is interpreted by managers and executives and used to make better decisions for
the organization.
2. How can the balanced scorecard be applied to human resources?
By linking clearly defined department objectives and performance to the company’s strategic
business goals, the human resource balanced scorecard can serve as a way of focusing human
resource staff on activities that will support the company’s goals. It also demonstrates the
strategic value of HR by defining and measuring its contribution in concrete, clearly
understood terms.
A balanced scorecard is a strategic management system that leverages strategic non-financial

performance measurements alongside the traditional financial metrics. This approach
provides a more “balanced” view from four organizational perspectives: financial, customers,
internal business processes, and learning and growth.

Using the area of recruiting as an example, a balanced scorecard would look something like
this:
 Objective: Reduce turnover costs.

 Description: Develop effective recruiting methods and new-hire orientation methods
to optimize the retention of new hires.
 Actions:
 Identify key attributes of successful employees who stay at the company for
two or more years.
 Utilize technology more effectively for recruiting and screening applications.
 Identify selection methods that will contribute to successful hires.
 Integrate branding efforts into recruiting.
 Revise the orientation program to ensure new-hire retention.
 Measures:
 Cost-per-hire (financial).
 Turnover rates and costs (financial).
 Time-to-fill (business process).
 Customer satisfaction with new-hire performance (customer).
 New-hire satisfaction with orientation (learning and growth).
 Supervisor satisfaction with orientation (learning and growth).
In addition to alignment with company goals, the HR scorecard must also contain the
following elements to truly be effective: accountability, validity and actionable, measurable
results.
In the previous example, HR and the line manager share joint accountability for the retention
of employees. HR is responsible for developing retention strategies, and the line manager is
responsible for providing feedback on whether the strategies are successful.
The HR scorecard must be valid. In other words, the measurement system must contain
metrics that are understandable, aligned to the objective and can be supported with solid data.
For the balanced scorecard to be meaningful, it must contain only those measures that are
most important to the objective and the company’s strategic plan; that is, the measures must
result in actionable items.
The balanced scorecard must focus on results. For example, simply measuring turnover or
time to fill is ineffective if no action is taken as a result of those measures. More meaningful
measures that are aligned clearly with the company’s strategic plan include productivity and
retention.
When it is successfully executed, the HR scorecard can be an extremely useful method of

aligning HR with the company’s strategic plan. The key to success is careful planning and
execution.

3. Why Build A Balanced Scorecard?
There are many reasons why you should implement the Balanced Scorecard, but here is one
way to look at it.
Your leadership team is responsible to some group of people: either stakeholders,

shareholders, a board of directors, a council, citizens, etc. This depends entirely on the type
of organization. In order to answer to this group, your team needs to ask two important
backward- and forward-looking questions:
1. How did we perform this past month, quarter, and year?
2. How are we going to do next month, quarter, and year?
In order to answer these two broad questions, you need a management system that is able
to to look backward and forward (with leading and lagging indicators). You not only need to
know today’s performance and predict tomorrow’s performance, but you need to be able to
demonstrate how your spending on strategic projects today will help you improve your
impact in the future. The Balanced Scorecard is the closest management tool to a crystal ball
as you will find.
4. Effective performance management with balanced

scorecard
Development Of Scorecard Thinking
1.1 From performance measurement to strategic management

The balanced scorecard is a management framework which, since its inception by Kaplan
and Norton in the early 1990s, has been adopted, modified and applied by hundreds of
organizations worldwide. If understood thoroughly and implemented appropriately, its
potential contribution to organizational success – however measured – is fundamental. The
scorecard translates vision and strategy into four notional quadrants. In the original offering
from Kaplan and Norton, these quadrants reflected the following perspectives and
implications of the strategy: ● Financial; ● Customer; ● Internal business processes; and ●
Organisational learning and growth. (An overview of the balanced scorecard can be found.
The key to the popularity of the scorecard may lie in its flexibility and adaptability. Whether
for commercial organisations, governed by profits, public sector operations governed by
service delivery, or not-for-profit organisations driven by commitment to a particular cause,
a scorecard that improves performance (either through performance measurement, or via
strategy refinement), can be developed. When first developed, the scorecard was
positioned as a holistic performance-measurement framework, which could provide
management with useful information relating to financial performance, internal processes,
customer perceptions and internal learning and growth. These second-generation
scorecards allow individuals and teams to define what they must do well to contribute to
higher-level goals. They are found most frequently in manufacturing and healthcare
organisations, especially those that have been implementing total quality management
programmes (TQM, Malcolm Baldridge award initiatives), which generate many measures to
monitor processes and progress. Such stakeholder scorecards, were criticised by some, as
being little more than an extended list of key performance indicators (KPIs). As organisations
developed their own scorecards to measure performance, each generated valuable
information, relating to many aspects of organisational activity.
Importantly, by introducing this concept of ‘causality’ into scorecard design, more recent
refinements to balanced scorecard use have exploited its potential value as a framework for
strategic management. Through the use of ‘strategic objectives’, many organisations, both
private and public, have used the scorecard to place strategy, rather than financial metrics
(simple budgets, economic value added, shareholder return etc.) at the heart of their
management processes. Strategic objectives, first represented as short sentences attached
to each of the four perspectives, can be used to highlight the essence of the organisation’s
strategy relevant to each. Measures that reflect progress towards the achievement of these
objectives are then selected. The identification of ‘causality’ – action and resultant impact –
between and within scorecard perspectives, marked a significant development in scorecard
understanding and application. Identifying assumed causality within the scorecard design
was the catalyst for the scorecard’s leap of value, from a framework for measuring
organisational performance (second-generation scorecards), to one which may, if fully
embedded in an organisation, lead to strategy refinement. This is being called the ‘third-
generation balanced scorecard’.
1.2 Strategy mapping

Strategy mapping provides an opportunity to articulate the key strategies or initiatives that
management intends to adopt to achieve the strategic objectives. The mapping process can
be effective in closing the gap between the strategic vision/direction and the operational
activities of the organisation – ensuring better execution of strategy. Thus, the balanced
scorecard design process is founded on the premise of strategy as a set of hypotheses about
cause and effect. These hypotheses form the strategy for moving the organisation from its

current position to where it wants to be. (Organisations can sometimes find it helpful to
state this desired position by formulating a ‘destination statement’). Importantly, having
developed the scorecard and by using the associated performance metrics, the cause and
effect relationships between actions and impacts are both explicit and testable. As such, it
should be possible for a third party to understand an organisation’s strategy, and how this is
to be achieved from an effective and well-constructed strategy map. Building the strategy
map It is crucial that a balanced scorecard represents a chain of assumed cause and effect
links between and within each scorecard perspective. For each performance measure it
must be clear what the key performance indicator is, and how each is achieved. Building the
strategy map involves the following steps:
1. Clarifying the mission and strategic vision.
2. Specifying objectives in the scorecard areas necessary to realise this vision.
From the example of a strategy map opposite, it can be seen that the organisation’s mission
is to improve shareholder value, and that this is achieved through the revenue growth and
productivity strategies – objectives of the financial perspective .
1.3 Effective scorecard design

The process of understanding the business model and identifying both performance drivers
and appropriate measures is complex. There is often confusion, for instance, around
assumed logical, rather than actual, causal relationships between drivers of performance
and hence performance measures. It may seem logical to assume causality between
reported customer-service satisfaction levels and financial results. However, the two are not
necessarily congruent: customer-service satisfaction levels within the budget airline industry
may be significantly lower than those of full-service carriers, although the comparative
financial performance of the former is markedly better.
To be predictive, rather than simply backward looking, the balanced scorecard approach
should focus on those activities and processes that an organisation needs to get right to
ensure it fulfils its strategy. The significance of this task cannot be underestimated. The lack
of a cause and effect relationship between drivers of performance and indicators, perhaps
from invalid assumptions of the business model, will lead to adverse organisational
behaviour and performance.
To summarise , the Kaplan and Norton view is that strategy scorecards:
● Provide a logical and comprehensive way to describe strategy;
● Communicate clearly the organisation’s desired outcomes and its hypotheses about how
these outcomes can be achieved; and

● Enable all organisational units to understand the strategy and identify how they can
contribute by becoming aligned to the strategy
5. The HR architecture as a strategic assests?

The focus of corporate strategy is to create sustained competitive advantage whereas that
of HR strategy is to maximize the contribution of HR towards the same goal. Thinking about
HR’s influence on the overall strategy of the company requires one to look at all aspects of
the HR architecture. The HR architecture describes the relationship of the HR function, the
HR system and the employee behaviour.
The HR Function
HR Architecture The HR
Management
Strategic
System
Employee
Behaviors
Figure 1: HR Architecture Strategic components
1.1.The HR function
The foundation of a value-creating HR strategy is a management infrastructure that

understands and can implement the firm’s strategy. The professionals in the HR function
would be expected to lead this effort. This clearly implies that HR managers and
professionals need to get a deeper understanding of the HR function. There are two basic
functional categories in HR management. The first is technical. It includes delivery of HR
basics such as recruiting, compensation and benefits. The second is strategic. It involves
delivering the above mentioned services in a way that directly supports the implementation of
the firm’s strategy. Most HR managers are proficient enough in the technical aspect but
rarely do they even know about the strategic aspect. Thus, the competencies that the HR

managers need to develop and the ones that have the largest impact on organisational
performance are the business and strategic competencies.
1.2.The HR system
In an effective high performance HR system, each element is designed to maximise the
overall quality of human capital throughout the organisation. To build and maintain a set of
talented human capital, the HR system should:-
1. Link its selection and promotion decisions to validated competency models

2. Develop strategies that provide timely and effective support for the skills demanded
by the firm’s overall strategy implementation.
3. Enact compensation and performance management policies that attract, retain and
motivate high-performance employees.
Basically, the firm needs to structure all the elements of its HR system in a way that supports
a high-performance workforce. However, systemic thinking implies stress on the
interrelationships of the HR system components and the link between HR and the larger
strategy of the firm. The laws of system thinking imply the following:
1. Problems of today are most likely due to past decisions. It is thus important to look at
the causal nature of past solutions and current problems.
2. One should think twice before taking the easy way out or deciding to go with standard
solutions to any problem as this will most likely lead to a crop of new problems in the
future.
3. Cause and effect are not closely related in time. There is a lag between cause and
effect and HR’s influence on firm performance is normally much less direct than that
of other performance drivers. This can make it hard to measure as well as be
misleading. It is thus important to look at the leading indicators and not just the
lagging indicators. Typical financial performance measures are lagging indicators and
in an attempt to solve financial problems, the first step is normally to cut costs. It is

more important to actually pinpoint the cause of the problem and look to long-term
benefits than short term ones.
4. The best strategies are often unobvious. Small changes in how HR drivers are
managed can slowly gather momentum and work their way through the strategy
implementation process.
5. It is important never to dissect the system and view each of its parts independently.
One must look at the system as a whole and the connections between the individual
parts is normally the vital place to look at for a solution to any of the problems.
Firms with high performance work systems tend to devote considerably more resources to
recruiting and selection. There is a strong emphasis on training and performance management
and compensation is tied to performance. Teamwork is encouraged, there is generally less
unionization and they have a large and effective HR team. It is important to note, that all
these factors in tandem, not in isolation, lead to better performance, once again showing the
systemic nature of HR’s role in performance enhancement. The effects of these measures are
lower employee turnover, more retention, greater sales per employee and a greater market
value for the firm.
It is also important for the HR system to constantly check for alignment of all its parts i.e.
how much they reinforce or conflict with each other. An example of misalignment is a policy
that encourages teamwork but rewards individual contributions.
In the service sector, the employee-customer relationship is very obvious and visible and so
the impact of value creation is unmistakable. But, in many firms, the value is derived from
the operational processes and quality of work that the employees generate. This is less
obvious to competitors and it cannot be imitated. It is especially in these kinds of firms that
the alignment of HR strategy and policy with the overall strategy of the firm matters the
most.
The alignment process begins with a clear understanding of what kind of value the
organisation is supposed to generate and how it should be generated. In the Balanced
Scorecard, this is referred to as the ‘strategy map’ that stresses the relationship between the
ultimate goals and the key success factors at the four important levels of customers, internal
operations, people and systems. Once the firm has a clear understanding of the value-creation
process, it can then design an implementation model that specifies needed skills and
competencies and employee behaviours throughout the firm. The HR management section
can then be directed towards generating these necessary competencies and behaviours. The
stress is not just on the creation of sound HR policies and strategies. How these are
implemented is also very important. There has to be a strong alignment with the firm’s
competitive strategy.
A high performance HR system will also tend be unique. This is because it depends on the
particular organisation, its goals, people and strategy. Hence, it proves to be a strategic asset.
1.3.Employee Behaviours
As mentioned above the final results of the strategies are mapped to required employee
behaviours. It is important that each employee be trained not just to do his or her job but also
to have a substantially clear understanding of where he or she stands in the big picture of the
overall strategy of the firm. Strategic behaviours are productive behaviours that directly serve
to implement the firm’s strategy. There are two basic categories. Core behaviours are
behaviours that are considered fundamental to the success of the firm, across all business
units and levels. Situation-specific behaviours on the other hand, are more circumstantial
behaviours. These are not required all the time but are absolutely necessary in certain
scenarios.
6. Theory behind the balanced scorecard

1.1Background of the concept of balanced scorecard
Throughout the history of contemporary management theories starting from the ones that
were introduced by the intrusion of the mass production in the beginning of the 20th century
and until today, all the gurus of management have been trying to find uniform solutions on
more efficient allocation and use of very limited resources available to businesses. Those

paths in seeking the Holy Grail of operational efficiency have brought up several new
management theories.
In the dawn of the century, Frederick W. Taylor established the very concepts of resource
allocation in his Principles of ScientJlc Management. In 1920-ics it went around assembly
line and motion studies as the first experience from systematic mass production had given
theorists quite a lot of materials to be analysed from the point of view of using traditional
blue-collar employees more efficiently. In the I 930-ies, the main topic was motivation of
employees, as it turned out that human nature does not enable to work long hours on a
repetitive tasks without frustration level getting so high enough to diminish productivity. In
the l940-ics and 1950-ies, the first statistical and linear methods were introduced in trying to
measure logistics of the operations management and its implications to overall company
success in financial-analysis side. In the beginning of 1980-ics, partly because of introduction
of electronic data processing equipment and quick development of computers, the whole
array of management techniques were initiated. The particular reasons for the vast
development of the new theories were catalyzed mainly by ever growing competition
generated through more systematic use of computers, and of course also by rapid growth of
the importance of human capital.
Today’s companies are in the midst of a revolutionary transformation. Industrial age

competition is shifting to information age competition. During the industrial age, roughly
from 1850 to about 1975, companies succeeded by how well they could capture the benefits
from economies of scale and scope. Technology mattered, but, ultimately, success accrued to
companies that could embed the new technology into physical assets that offered efficient,
mass production of standard products. During the industrial age, the financial control systems
were developed in major companies to facilitate and monitor efficient allocations of financial
and physical capital. A summary financial measure such as return-on-capital-employed
(ROCE) could both direct a company’s internal capital to its most productive use and monitor
the efficiency by which operating divisions used financial and physical capital to create value
for shareholders.
The emergence of the information era, however, in the last decades of the 2O century, has
made obsolete many of the fundamental assumptions of industrial age competition. The
information age environment for both manufacturing and service organisations requires new
capabilities for competitive success. The ability of a company to mobilise and exploit its
intangible assets has become far more decisive than investing and managing tangible,
physical assets.
Industrial age companies created a sharp distinction between two groups of employees. The
intellectual elite — managers and engineers — used their analytical skills to design products
and processes, select and manage customers, and supervise day-to-day operations. The
second group was composed of the people who actually produced the products and delivered
the services. This direct labour work force was a principal factor of production, which
performed its tasks under supervision of the first group. Today automation and productivity
have increased the number of people performing analytic functions: engineering, marketing,
management and administration. Therefore, the people are more viewed as problem solvers,
not as variable costs. In other words, information age has brought about the concept of
knowledge management.
The shift to successful knowledge management has introduced a variety of improvement

initiatives:
1. Just-in-time
2. Total quality management,
3. Lean enterprise,
4. Business process re-engineering,
5. Time-based competition,
6. Customer-focused organization,
7. Activity-based cost management,
8. Employee empowerment,
9. Living company and many others.
Some of those programmes have meant in practice real breakthrough and improvement,
others have proven to be in the best case just a short-time disturbance, but in the worst cases

total failures resulting in disarray or even bankruptcy of a particular company. The main
reason for that lies in five main implementation problems:
1. current performance measurement systems are based on the traditional financial

accounting model, which does not enable to objectively analyse information-age
companies;
2. if some non-financial performance measurement even is made, it is solely based on

employees’ tactical performance, not on strategic performance;
3. majority of management and employee salary-based motivation schemes arc only

short-run profit oriented, that does not enable to align towards long-run goals;
4. overall company strategy is not closely linked to organisational and personal

improvement programmes; and
5. strategy is not generally linked to resource allocation, which results in under-

financing some of the crucial parts of organisation’s development.
As for today, superior financial performance and efficiency in production are just not enough
to gain sufficient competitive advantage, but more and more attention needs to be paid to
intangible sides of business.
For at least 15 years, the leading management journals have published articles about how to
build up a mechanism that would enable to control all the aspects of a company’s
performance. One of the most versatile tools for that purpose is Balanced Scorecard.
The long-term success of any organization is determined by the capabilities and the
competencies it has developed. Today’s businesses require a better understanding of their
customers (both existing and potential ) and their needs, better streamlined processes and
highly skilled people for ensuring future survival and sustainable growth.
This innovative tool “Balanced Scorecard” developed by Robert S Kaplan and David P
Norton in 1992 is unique in two ways compared to the traditional performance measurement
tools. They are:-

1. It considers the financial indices as well the non-financial ones in determining the
corporate performance level and
2. It is not just a performance measurement tool but is also a performance management

system
The aim of the Balanced Scorecard is to direct, help manage and change in support of the
longer-term strategy in order to manage performance. The scorecard reflects what the
company and the strategies are all about. It acts as a catalyst for bringing in the change’
element within the organization
Balanced Scorecard uses a balanced measurement system that comprises of “the old”
financial side and four “new” perspectives of:
1. Financial Perspective - How do we look at shareholders?
2. Customer Perspective - How should we appear to our customers?
3. Internal Business Processes Perspective - What must we excel at?
4. Learning and Growth Perspective - Can we continue to improve and create value?
Hence, from the above lines we can say that this tool has considered not only the financial
results to be important but also those factors which actually drive an organization towards
future successes as mentioned earlier. The tool has given stress on the other areas which are
required to “balance” the financial perspective in order to get a total view about the
organizational performance and improve the same.
The framework tries to bring a balance and linkage between the —
1. Financial and Non-Financial Measures,
2. Tangible and the Intangible measures,

3. Internal and the External aspects and
4. Leading and the Lagging indicators.
The Balanced Scorecard emphasises the importance of measuring business performance from
the perspective of strategic implementation, rather than relying solely on financial results.
Senior managers tend to pay far too much attention to the financial dimensions of
performance and not enough attention to the driving forces behind those results. Financial
measures are lagging indicators i.e. backward looking. They are designed to rectify or change
past results. Performance drivers on the other hand are within the control of the management
in the present and the Balanced Scorecard methodology encourages management to look at
these leading indicators as well. By specifying the important process measures, assessing
them, and communicating the firm’s performance based on these criteria to the employees,
the managers can ensure that the entire organisation participates actively in the strategy
implementation process. It is a unifying tool in strategy implementation.
To achieve strategy alignment, firms must engage in a two-step process. As mentioned

before, first the managers must understand the details of how value is created in their firm.
Once this is done, they can design a measurement system based on their understanding. The
first step focuses the organisation on two dimensions of the strategy implementation process
namely breadth and causal flow. Breadth refers to the fact that companies must study more
than just financial results as outcomes of strategy implementation. It must also focus on other
key performance drivers. Causal flow refers to the series of linkages between financial and
non-financial determinants of firm performance. This gives the managers a deeper
perspective of why certain financial results are the way they are. It allows them to link the
financial measures to the non-financial measures of success. The second point is the design of
a measurement system. This involves attaching metrics to the financial and non-financial
determinants. The Balanced Scorecard identifies four key perspectives that directly and
completely define strategy measurement and analysis. They include the financial perspective,
the customer perspective (e.g. customer loyalty and satisfaction), the internal processes
perspective (e.g. process quality and process cycle time) and finally learning and growth
perspective (e.g. employee skills) that is the leading indicator.

The next important step is communication. The top management that has done the above
analysis must communicate their findings and decisions to the middle and front-line
managers, who in turn must communicate it to the other employees. In this way, everyone in
the organisation is made aware and can participate in the strategy implementation process.
This also helps allocate resources intelligently and guides employees’ decisions. The
Balanced Scorecard model recognises the importance of both tangible and intangible assets
and of financial and non-financial measures. It focuses on the complex connections among
the firm’s customers, operations, employees and technology and places an important role for
HR. The BSC framework highlights the differences between leading and lagging indicators.
Lagging indicators include financial metrics, which typically reflect only what has happened
in the past. Such metrics accurately measure impacts of past decisions but don’t help in
making current decisions or guaranteeing future outcomes. The leading indicators are the
unique indicators for each firm. They include process cycle time, customer satisfaction or
employee strategic focus. These indicators assess the status of key success factors that drive
the implementation of the firm’s strategy and hence emphasise the future rather than the past.
1.2. Defining Critical Success Factors and Measures

Four Perspectives
1. Financial Perspective - How do we look at shareholders?
From all the measurement perspectives of a Balanced Scorecard, the financial perspective
needs to be introduced the least as the main financial measurement systems have been
analysed during the past years very thoroughly
The particular financial performance measures for any Balanced Scorecard should define
long-run financial objectives for the organisation. While most of the organisations would
emphasise profitability objectives, other possibilities may also be considered. Businesses with
many products in the early stage of their life cycle can stress rapid growth objectives, and
mature businesses may emphasise maximising cash flow.
Norton and Kaplan recommend to simplify the financial perspective measurement selection
pool to identify first the organisation’s stage, which would mainly be one of the three:

I. “rapid growth” organisations - are at the early stages of their life cycle. They may
have to make considerable investments to develop and enhance new products and
serviccs, to construct and expand production facilities, to build operating capabilities,
to invest in systems, infra-structure, and distribution networks that will support
relationships, and to nurture and develop customer relationships.
II. “sustain” organisations — organisations that still attract investment and

reinvestment, but are required to cam excellent returns on their invested capital. These
businesses are expected to maintain their existing market share and perhaps grow it
somewhat. Investment projects will be more directed to relieving bottlenecks,
expanding capacity, and enhancing continuous improvement.
III. “harvest” organisations - have reached a mature phase of their life cycle, where the
company wants to harvest the investments made in the earlier to stages. These
businesses no longer warrant significant investment — only enough to maintain
equipment and capabilities, not to expand or build new capabilities. Any investment
project will have to have very short and definite payback periods. The main goal is to
maximise cash flow back to the organisation.
The financial objectives for businesses in each of these three stages are quite different.
Financial objectives in the growth stage will emphasise sales growth; sales in new markets
and to new customers; sales from new products and services; maintaining adequate spending
levels for product and process development, systems, employee capabilities; and
establishment of new marketing, sales, and distribution channels. Financial objectives in the
sustain stage will emphasise traditional financial measurements, such as return on capital
employed, operating income, and gross margin.
Investment projects for businesses in the sustain category will be evaluated by

standard, discounted cash flow, capital budgeting analyses. Some companies will employ
newer financial metrics, such as economic value added and shareholder value. These metrics
all represent the classic financial objective---earn excellent returns on the capital provided to
the business.
The financial objectives for the harvest businesses will stress cash flow. Any investments
must have immediate and certain cash paybacks. The goal is not to maximise return on
investment, which may encourage managers to seek additional investment funds based on

future return projections. Virtually no spending will be done for research or development or
on expanding capabilities, because of the short time remaining in the economic life of
business units in their “harvest” phase.
Some of the objectives together with a measurement measures
Objectives Measures
Survive Cash Flow
Prosper Increase in Market Share
Profitability Return on Equity
Cost Leadership Unit Cost
2. Customer Perspective - How should we appear to our customers?
The customer perspective addresses the question of how the firm is viewed by its customers
and how well the firm is serving its targeted customers in order to meet the financial
objectives. Generally, customers view the firm in terms of time, quality, performance, and
cost. Most customer objectives fall into one of those four categories.
In the customer perspective of the Balanced Scorecard, managers identify the customer and
market segments in which the business unit will compete and the measures of the business
unit’s performance in these targeted segments.
The customer perspective typically includes several generic measures of the successful
outcomes from a well-formulated and implemented strategy. The genetic outcome measures
include customer satisfaction, customer retention, new customer acquisition, customer
profitability, and market and account share in targeted segments. While these measures may
appear to be generic across all types of organisations, they should be customised to the
targeted customer groups from whom the business unit expects its greatest growth and

profitability to be derived.
I. Market and Account Share
Market share, especially for targeted customer segments, reveals how well a company
is penetrating a desired market. For example, a company may temporarily be meeting
sales growth objectives by retaining customers in non-targeted segments, but not
increasing its share in targeted segments. The measure of market share with targeted
customers would balance a pure financial signal (sales) to indicate whether an
intended strategy is yielding expected results.
When companies have targeted particular customers or market segments, they can
also use a second market-share type measure: the account share of those customers’
business (some refer to this as the share of the “customers’ wallet”). The overall
market share measure based on business with these companies could be affected by
the total amount of business these companies are offering in a given period. That is,
the share of business with these targeted customers could be decreasing because these
customers are offering less business to all their suppliers. Companies can measure-
customer by customer or segment by segment-how much of the customers’ and
market segments’ business they are receiving. Such a measure provides a strong focus
to the company when trying to dominate its targeted customers’ purchases of products
or services in categories that it offers.
II. Customer Retention
Clearly, a desirable way for maintaining or increasing market share in targeted

customer segments is to retain existing customers in those segments. Research on the
service profit chain has demonstrated the importance of customer retention.
Companies that can readily identify all of their customers-for example, industrial
companies, distributors and wholesalers, newspaper and magazine publishers,
computer on-line service companies, banks, credit card companies, and long-distance
telephone suppliers- can readily measure customer retention from period to period.
Beyond just retaining customers, many companies will wish to measure customer
loyalty by the percentage growth of business with existing customers

III. Customer Acquisition
Companies seeking to grow their business will generally have an objective to increase
their customer base in targeted segments. The customer acquisition measure tracks, in
absolute or relative terms, the rate at which a business unit attracts or wins new
customers or business. Customer acquisition could be measured by either the number
of new customers or the total sales to new customers in these segments. Companies
such as those in the credit and charge card business, magazine subscriptions, cellular
telephone service, cable television, and banking and other financial services solicit
new customers through broad, often expensive, marketing efforts. These companies
could examine the number of customer responses to solicitations and the conversion
rate- number of actual new customers divided by number of prospective inquiries.
They could measure solicitation cost per new customer acquired, and the ratio of new
customer revenues per sales call or per dollar of solicitation expense.
IV. Customer Satisfaction
Both customer retention and customer acquisition are driven from meeting customers’
needs. Customer satisfaction measures provide feedback on how well the company is
doing. The importance of customer satisfaction probably cannot be over-emphasised.
Recent research has indicated that just scoring adequately on customer satisfaction is
not sufficient for achieving high degrees of loyalty, retention, and profitability. Only
when customers rate their buying experience as completely or extremely satisfying
can the company count on their repeat purchasing behaviour.
V. Customer Profitability
Succeeding in the core customer measures of share, retention, acquisition, and

satisfaction, however, does not guarantee that the company has profitable customers.
Obviously, one way to have extremely satisfied customers (and angry competitors) is
to sell products and services at very low prices. Since customer satisfaction and high
market share are themselves only a means to achieving higher financial returns,
companies will probably wish to measure not just the extent of business they do with

customers, but the profitability of this business, particularly in targeted customer
segments. Activity-based cost (ABC) systems permit companies to measure
individual and aggregate customer profitability. Companies should want more than
satisfied and happy customers; they should want profitable customers. A financial
measure, such as customer profitability, can help keep customer-focused
organisations from becoming customer-obsessed.
The customer profitability measure may reveal that certain targeted customers are
unprofitable. This is particularly likely to occur for newly acquired customers, where
the considerable sales effort to acquire a new customer has yet to be offset from the
margins earned by selling products and services to the customer. In these cases,
lifetime profitability becomes the basis for deciding whether to retain or discourage
currently unprofitable customers.
Newly acquired customers can still be valued, even if currently unprofitable, because
of their growth potential. But unprofitable customers who have been with the
company for many years will likely require explicit action to cope with their incurred
losses.
VI. Beyond the Core: Measuring Customer Value Propositions
Customers’ value propositions represent the attributes that supplying companies

provide, through their products and services, to create loyalty and satisfaction in
targeted customer segments. The value proposition is the key concept for
understanding the drivers of the core measurements of satisfaction, acquisition,
retention, and market and account share. For example, customers could value short
lead times and on-time delivery. They could value a constant stream of innovative
products and services. Or they could value a supplier able to anticipate their needs and
capable of developing new products and approaches to satisfy those emerging needs.
While value propositions vary across industries, and across different market segments
within industries, Kaplan and Norton have observed a common set of attributes that
organises the value propositions in all of the industries where we have constructed
scorecards. These attributes are organised into three categories.
 Product/Service Attributes

 Customer Relationship
 Image and Reputation
Product and service attributes encompass the functionality of the product/service, its
price, and its quality. The image and reputation dimension enables a company to pro-
actively define itself for its customers. The customer relationship dimension includes
the delivery of the product/service to the customer, including the response and
delivery time dimension, and how the customer feels about the experience of
purchasing from the company.
In summary, the customer perspective enables business unit managers to articulate their
unique customer and market-based strategy that will deliver superior future financial returns.
Objectives Measures
New Product % of sales from new product
Customer Relationship % of retained customer
Responsive Supply On time Delivery
3.Internal Business Processes Perspective - What must we excel at?
Internal business process objectives address the question of which processes are most critical
for satisfying customers and shareholders. These are the processes in which the firm must
concentrate its efforts to excel.
In the internal business process perspective, executives identify the critical internal processes
in which the organisation must excel. The critical internal business processes enable the
business unit to deliver on the value propositions of customers in targeted market segments,
and satisfy shareholder expectations of excellent financial returns. The measures should be

focused on the internal processes that will have the greatest impact on customer satisfaction
and achieving the organisation’s financial objectives.
The internal business process perspective reveals two fundamental differences between
traditional and the Balanced Scorecard approaches to performance measurement. Traditional
approaches attempt to monitor and improve existing business processes.
They may go beyond just financial measures of performance by incorporating quality and
time-based metrics. But they still focus on improving existing processes. The Balanced
Scorecard approach, however, will usually identify entirely new processes at which the
organisation must excel to meet customer and financial objectives. The internal business
process objectives highlight the processes most critical for the organisation‘s strategy to
succeed.
The second departure of the Balanced Scorecard approach is to incorporate innovation
processes into the internal business process perspective. Traditional performance
measurement systems focus on the processes of delivering today’s products and services to
today’s customers. They attempt to control and improve existing operations - the short wave
of value creation. But the drivers of long-term financial success may require the organisation
to create entirely new products and services that will meet the emerging needs of current and
future customers. The innovation process-the long-wave of value creations, for many
companies, is a more powerful driver of future financial performance than the short-term
operating cycle. But managers do not have to choose between these two vital internal
processes. The internal business process perspective of the Balanced Scorecard incorporates
objectives and measures for both the long-wave innovation cycle as well as the short-wave
operations cycle.
Objectives Measures
Manufacturing Excellence Cycle Time per Unit
Safety incidence Index Number of Accidents
Increased design Productivity Engineering Efficiency
Increased Product Launch Days Actual Launch Days Vs Plan

4.Learning and Growth Perspective - Can we continue to improve and
create value?
Learning and growth metrics address the question of how the firm must learn, improve, and
innovate in order to meet its objectives. Much of this perspective is employee- centered.
The fourth Balanced Scorecard perspective, Learning and growth, identifies the infrastructure
that the organisation must build to create long-term growth and improvement. The customer
and internal business process perspectives identify the factors most critical for current and
future success. Businesses are unlikely to be able to meet their long-term targets for
customers and internal processes using today’s technologies and capabilities. Also, intense
global competition requires that companies continually improve their capabilities for
delivering value to customers and shareholders.
Organisational learning and growth come from three principal sources: people, systems, and
organisational procedures. The financial, customer, and internal business process objectives
on the Balanced Scorecard will typically reveal large gaps between existing capabilities of
people, systems, and procedures and what will be required to achieve targets for
breakthrough performance. To close these gaps, businesses will have to invest in re-skilling
employees, enhancing information technology and systems, and aligning organisational
procedures and routines. These objectives arc articulated in the learning and growth
perspective of the Balanced Scorecard. As in the customer perspective, employee-based
measures include a mixture of generic outcome measures- employee satisfaction, employee
retention, employee training, and employee skills- along with specific drivers of these generic
measures, such as detailed indexes of specific skills required for the new competitive
environment. Information systems capabilities can be measured by real-time availability of
accurate customer and internal process information to front-line employees. Organisational
procedures can examine alignment of employee incentives with overall organisational
success factors, and measured rates of improvement in critical customer-based and internal
processes.

Objectives Measures
Technology Leadership Time to develop new product
Manufacturing Learning Time to new process maturity
Product Focus % of product representing 80% of sales
1.3.The Four Perspectives: Cause and Effect Relationship
The four perspectives as mentioned above are highly interlinked. There is a logical
connection between them. The explanation is as follows If an organization focuses on the
learning and the growth aspect, it is definitely going to lead to better business processes. This
in turn would be followed by increased customer value by producing better products which
ultimately gives rise to improved financial performance.
Learning and Growth
Better Process
Increased Customer Value
Improved Financial Performance
Figure 2: The Cause and Effect relationships among the four perspectives

1.4.The Balanced Scorecard Model
Explanation:
Following steps are to be taken so as to utilize the Balanced Scorecard as a strategic

management tool:
1. The major objectives are to be set for each of the perspectives.
2. Measures of performance arc required to be identified under each of the Objectives

which would help the organization to realize the goals set under each of the
perspectives. These would act as parameters to measure the progress towards the
objectives.
3. The next important step is the setting of specific targets around each of the identified
key areas which would act as a benchmark for performance appraisal. Hence, a
performance measurement system is build around these critical factors. Any deviation
in attaining the results should raise a red signal to the management which would
investigate the reasons for the deviation and rectify’ the same.
4. The appropriate strategies and the action plans that arc to be taken in the various
activities should be decided so that it is clear as to how the organization has decided
to pursue the pre-decided goals. Because of this reason, the Balanced Scorecard is
often referred to as a blueprint of the company strategies.

To succeed financially,
how should we appear to
our shareholders?
Financial Objectives
Measures Targets
Initiatives
To achieve our vision, To Satisfy our

how should we appear to shareholders and
our customers? Vision and customers, processes
Customer Objectives Strategy must we excel at?
Measures Targets Internal Process
Initiatives Objectives Measures
Targets Initiatives
To achieve our vision,

how will we sustain
our ability to change
and improve?
Learning and Growth
Objectives Measures
Targets Initiatives
30
Figure 3:- The Main framework of Balanced Scorecard
1.5.Balanced Scorecard as a Measurement Tool
To illustrate the use of today’s main measurement tools, Kaplan and Norton bring the
following example:
Imagine entering the cockpit of a modern jet airplane and seeing only a single
instrument there. How would you feel about boarding the plane after the following
conversation with the pilot?
Q: I am surprised to see you operating the plane with only a single instrument.
What does it measure?
A: Airspeed. I am really working on airspeed this flight.
Q: That’ good. Airspeed certainly seems important. But what about altitude? Would
an altimeter be helpful?
A: I worked on altitude for the last few flights and I’ve gotten pretty good on it. Now
I have to concentrate on proper airspeed.
Q: But I notice you do not even have a fuel gauge. Wouldn’t that be useful?
A: You are right; fuel is significant, but I cannot concentrate on doing too many
things well at the same time. So on this flight I’m focusing on airspeed. Once I get to
be excellent at airspeed, as well as altitude, I intend to concentrate on fuel
consumption in the next set of flights.
We suspect that you would not board the plane after this discussion. Even if the pilot
did an exceptional job on airspeed, you would be worried about colliding with tall
mountains or running low on fuel. Clearly, such a conversation is a fantasy since no
pilot would dream of guiding a complex vehicle like a jet airplane through crowded
air spaces with only a single instrument. Skilled pilots are able to process information
31
from a large number of indicators to navigate their aircraft. Yet navigating today’s
organisations through complex competitive environments is at least as complicated as
flying a jet. Why should we believe that executives need anything less than a full
battery of instrumentation for guiding their companies? Managers, like pilots, need
instrumentation about many aspects of their environment and performance to monitor
the journey toward excellent future outcomes.
7.Introduction to Human resource management
1.1Definition and Meaning:

Human Resource Management includes conducting job analyses, planning
personnel needs, recruiting the right people for the job, orienting and training,
managing wages and salaries, providing benefits and incentives, evaluating
performance, resolving disputes, and communicating with all employees at all levels.
Examples of core qualities of HR management are extensive knowledge of the
industry, leadership, and effective negotiation skills.
Human Resource Management is the process of recruitment, selection of employee,

providing proper orientation and induction, providing proper training and the
developing skills, assessment of employee (performance of appraisal), providing
proper compensation and benefits, motivating, maintaining proper relations with
labour and with trade unions, maintaining employees safety, welfare and health by
complying with labour laws of concern state or country.
1.2Objectives of HRM:
 To help the organization reach its goals.

 To ensure effective utilization and maximum development of human
resources.
 To ensure respect for human beings. To identify and satisfy the needs of
individuals.
 To be ethically and socially responsive to the needs of society.
 To develop and maintain a quality of work life.
 To inculcate the sense of team spirit, team work and inter team
collaboration.
 To achieve and maintain high morale among employees.
32
1.3Nature of HRM:
 It is pervasive in nature as it is present in all enterprises.

 Its focus is on results rather than on rules.
 It tries to help employees develop their potential fully.
 It tries to put people on assigned jobs in order to produce good results.
 It helps an organization meets its goals in the future by providing for
competent and well- motivated employees.
 It is all about people at work, both as individuals and groups.
1.4Evolution of HRM:
In early stages, employees working in factories were treated harsh condition with
minimum wages or without wages in poor working condition. The government
interferes on basic protection for labors/employees in factories by introducing
statutory regulations.
It results in evolution of Human Resource department where factory owners agreed

and the concern person looks into employee welfare and wages. Human Resource
Management, in other words organization’s manpower or workforce management
or personnel management. Before industrial revolution, the entire population was
influenced on agriculture economy with minimum production level. Since production
level is less compared to post revolution, manpower was minimum and
communication among them also inadequate.
During industrial revolution, there was a change in economy, people acquires
awareness on modernization. It determines a new way for industrial setup, where it
concentrates on employee wages and welfare.
In this period, companies adopted new concept known as "merger and acquisition"
for maximizing workforce and uses automated web-based HR systems.
As soon as the industry grows, an important incident occurred in industrial

revolution i.e development in Labor Union. In order to manage labors and their
issues in workplace and wages related, organization forms a separate function
named Personnel Management department.
During 1980's, new theories and strategies are implemented for change
management, motivation and team building. Personnel Management department
major responsibility is to resolve politics and diplomacy. So, this is the place where
an industrial relation department raised.
33
 The history of personnel management begins around the end of the 19 th
century, when welfare officers (sometimes called’ welfare secretaries’) came
into being.
 They were women and concerned only with the protection of women and
girls.
 Their creation was a reaction to the harshness of industrial conditions,
coupled with pressure arising from the extension of the franchise, the
influence of trade unions and the labor movement, and the campaigning of
enlightened employers, often quakers, for what was called ‘industrial
betterment’.
 As the role grow there was some tension between the aim of moral
protection of women and children and the needs for higher output.
1.5Scope of HRM :
The scope of HRM is, indeed, very vast and wide. It includes all activities starting
from manpower planning till employee leaves the organization. Accordingly, the
scope of HRM consists of acquisition, development, maintenance/retention, and
control of human resources in the organization. The same forms the subject matter
of HRM. The scope of HRM refers to all the activities that come under the banner of
HRM.
1. Personnel aspect-This is concerned with manpower planning, recruitment,
selection, placement, transfer, promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity etc.
2. Welfare aspect-It deals with working conditions and amenities such as canteens,
crèches, rest and lunch rooms, housing, transport, medical assistance, education,
health and safety, recreation facilities, etc.
3. Industrial relations aspect-This covers union-management relations, joint
consultation, collective bargaining, grievance and disciplinary procedures, settlement
of disputes, etc.
34
These activities are as follows
1. Human resources planning:-

Human resource planning or HRP refers to a process by which the company
to identify the number of jobs vacant, whether the Company has excess staff or
shortage of staff and to deal with this excess or shortage.
2. Job analysis design:-

Another important area of HRM is job analysis. Job analysis gives a
detailed explanation about each and every job in the company. Based on this job
analysis the company prepares advertisements.
3. Recruitment and selection:-

Based on information collected from job analysis the company Prepares
advertisements and publishes them in the newspapers. This is recruitment. A
number of applications are received after the employee is selected thus recruitment
and selection are yet another important area of HRM.
35
4. Orientation and induction:-
Once the employees have been selected an induction or Orientation
program is conducted. This is another important area of HRM. The employees
are informed about the background of the company, explain about the
organizational culture and values and work ethics and introduce to the other
employees.
5. Training and development:-

Every employee goes under training program which helps him to put up s
better performance on the job. Training program is also Conducted for existing
staff that have a lot of experience. This is called Refresher training. Training and
development is one area where the company spends a huge amount.
6. Performance appraisal:-
One the employee has put in around 1 year of service, Performance appraisal
is conducted that is the HR department checks the performance of the
employee. Based on these appraisal future Promotions, incentives, increments in
salary are decided.
7. Compensation planning and remuneration:-

There are various rules regarding compensation and other benefits. It is the
job of the HR department to look into remuneration and compensation planning.
8. Motivation, welfare, health and safety:-

Motivation becomes important to sustain the number of employees in the
company. It is the job of the Hr department to look into the different methods of
motivation. Apart from this certain health and safety regulations have to be
followed for the benefits of the employees. This is also handles by the HR
department.
36
1.6 SUMMARY:
HRM has evolved from a number of different strands of thought and is best
described as a loose philosophy of people management rather than a focused
methodology. It is a topic which continues to attract debate and disagreement. As a
consequence, practitioners and textbooks use a diverse and sometimes
contradictory range of interpretations. We found that HRM has a variety of
definitions but there is general agreement that it has a closer fit with business
strategy than previous models, specifically personnel management. The early models
of HRM take either a 'soft' or a 'hard' approach, but economic circumstances are
more likely to drive the choice than any question of humanitarianism. We concluded
with ten key principles which determine the coherence and effectiveness of the HRM
approach to people management.
37
Company
Introduction
38
Company Overview
GAIL (India) Limited is the largest state-owned natural gas processing and
distribution company in India. It is headquartered in New Delhi. It has the following
business segments: natural gas, liquid hydrocarbon, liquefied petroleum
gas transmission, petrochemical, city gas distribution, exploration and production,
GAILTEL and electricity generation. GAIL was conferred with the Maharatna status
on 1 Feb 2013, by the Government of India. Only six other Public Sector Enterprises
(PSEs) enjoy this coveted status amongst all central CPSEs. GAIL was listed in the
131st position among India's most trusted brands according to the Brand Trust
Report 2014, a study conducted by the Trust Research Advisory.
GAIL (India) Limited was incorporated in August 1984 as a Central Public Sector
Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The
company was formerly known as Gas Authority of India Limited. It is India's principal
gas transmission and marketing company. The company was initially given the
responsibility of construction, operation and maintenance of the Hazira – Vijaypur –
Jagdishpur (HVJ) pipeline project. It was one of the largest cross-country natural gas
pipeline projects in the world. This 1750-kilometre-long pipeline was built at a cost
of ₹17 billion (US$250 million) and it laid the foundation for development of market
for natural gas in India. GAIL commissioned the 1,750 kilometers (1,090 mi) Hazira-
Vijaypur-Jagdishpur (HVJ) pipeline in 1991. Between 1991 and 1993, three liquefied
petroleum gas (LPG) plants were constructed and some regional pipelines acquired,
enabling GAIL to begin its gas transportation in various parts of India.
GAIL began its city gas distribution in New Delhi in 1997 by setting up
nine compressed natural gas (CNG) stations
GAIL today has reached new milestones with its strategic diversification into
petrochemicals, telecom and liquid hydrocarbons besides gas infrastructure. The
company has also extended its presence in power, liquefied natural gas re-
gasification, city gas distribution and exploration & production through participation
in equity and joint ventures. Incorporating the new-found energy into its corporate
identity, Gas Authority of India was renamed GAIL (India) Limited on 22 November
2002.
GAIL (India) Limited has shown organic growth in gas transmission through the years
by building large network of trunk pipelines covering length of around 10,700
kilometers (6,600 mi). Leveraging on the core competencies, GAIL played a key role
as gas market developer in India for decades catering to major industrial sectors like
power, fertilizers, and city gas distribution. GAIL transmits more than 160 mmscmd
of gas through its dedicated pipelines and have more than 70% market share in both
gas transmission and marketing.
39
Mission and Vision
Mission
To accelerate and optimize the effective and economic use of Natural Gas and its
fractions for the benefit of the national economy.
Vision
Be the leading company in Natural Gas and Beyond, with Global Focus, Committed
to Customer Care, Value Creation for all Stakeholders and Environmental
Responsibility.
Key Elements of GAIL's Vision

Ethics
We are transparent, fair and consistent in dealing with all people. We insist on
honesty, integrity and trustworthiness in all our activities.
Customer
We strive relentlessly to exceed the expectations of our customers, both internal

and external. Our customers prefer us.
People
We believe our success is driven by the commitment and excellence of our people.
We attract and retain result-oriented people who are proud their work and are
satisfied with nothing less than the very best in everything they do. We encourage
individual initiative by creating opportunities for our people to learn and grow. We
40
respect the individual rights and dignity of all people.
Shareholders
We meet the objectives of our shareholders by providing them superior returns

and value through their investments in us.
Safety, Health and Environment
We promote highest levels of safety in our operations, health of our employees

and a clean environment. We strive for continuous development of the
communities in which we operate.
Technology
We believe technology is the key to the future success of our organisation. We

advocate use of 'best-in-class' technologies.
Mahindra Group Plans Mahindra Logistics’ IPO

Mahindra & Mahindra Limited (NSEI:M&M) plans to list Mahindra Logistics
Limited in the next two years, Parag Shah, managing partner of Mahindra
Partners, said. "Within Mahindra Partners, the one (IPO) which could happen
first is Mahindra Logistics but that is still a couple of years away," Shah said.
Mahindra Logistics Seeks Acquisitions

Mahindra Logistics Limited is scaling up through acquisitions before getting
listed.
41
Mahindra Logistics was founded as a strategic initiative to enhance focus on
logistics services to both internal and external customers.
Mahindra's complex supply chain needs, including inbound and outbound

logistics, inter-plant movement, warehousing, linefeed, freight forwarding and
value added services among other solutions were taken care of, by MLL.
Today, Mahindra Logistics‘s serve over 200 large corporate clients across
various industries and operating verticals.
Key executives for Mahindra logistics limited
Mr. Pirojshaw Sarkari

Chief Executive Officer
Age: 50
Mr. Nikhil Nayak

Chief Financial Officer
Age: 55
Mr. Ravi Begur

Head of Information Technology
Age: 49
Mr. Sushil Rathi

Senior Vice President of Supply Chain Management
42
Mr. Sutanu Chowdhury
Vice President of Human Resources
Mahindra entered the booming logistics industry in 2000 as a captive entity

servicing the needs of Mahindra’s rapidly growing Automotive and Farm
sectors. Mahindra branched out and moved beyond a decade ago. Today,
Mahindra Logistics is a stand-alone company that services over 200 large
corporate customers by deploying 25,000 vehicles a month, and five million
square feet of warehouse space. Mahindra feel proud to be India's leading
integrated third party logistics service providers, offering a customized, IT-
enabled supply chain and people transport solutions across diverse industry
verticals.
MAHINDRA’S SELF INTRODUCTION
Mahindra logistics vision, mission and values
Our Vision
To be India’s leading and most preferred integrated logistics service provider.
Our Mission
To serve our customers, in global markets, by providing creative, cost
effective, technology enabled solutions that continuously meet and exceed
our customers’ expectations thus enhancing stakeholder value.
To provide continuous opportunities for growth and knowledge enhancement
to our employees and business associates.
Also to serve the communities within which we work, with integrity and
responsibility.
Our Core Values
 Consider every customer a partner, evolving to make every customer a

co-owner.
 Be the standard by which competitors services are measured.
 Social responsibility and inclusive growth.
43
 Maintain the highest levels of professionalism, ethics and integrity in
whatever we do.
INNOVATION
Innovation is at the heart of everything we do. We believe in leveraging our

technology to the fullest by offering a holistic suite of options.
We focus on innovation that helps us deliver solutions that best serve our
clients and customers.
5 S FRAMEWORK TO INNOVATION
Our 5 S framework details our approach in how we bring our innovation

philosophy to life within the Group. We intend on breaking barriers to
make technology and innovation accessible to all.
Space
We understand the need of a designated physical and mental space for
innovative ideas to flow in, so as to ponder over solutions to critical
problems.
Self-Indulgent Creativity
This involves solving and indulging in problems related to providing
solutions and the appropriate technology with it.
Simplicity
is always our virtue when trying to propose any form of suitable solution
to an existing logistics process. We view finding simple solutions to
complex problems as a true hallmark of an innovative genius.
Sans ('without', in French)

We take pride in ourselves for overcoming complex issues ‘without’
enough capital, technology, or skilled human resources. The ability of
delivering more with less is the key to who we are.
Sustained Experimenting
They say genius is 1% inspiration and 99% perspiration. Unless we
experiment with ideas, pilot them, and learn from our experiences, we will
never make bold decisions. Thus, the learning loops formed by sustained
experimentation are critical to innovation.
At Mahindra, our aspirations are defined by the efforts to build a global

brand.
We believe that innovation has to be the core of our business. Thus, our
aspiration to become one of the most admired brands in the world
44
demands such an outlook, and requires the collaboration of everyone
across the organization. Being an innovator too, requires a mindset to
explore the unknown. Therefore, at Mahindra, we aim to catalyze a
ecosystem for innovators to build world-class, breakthrough products for
our brand.
About the Brand
At Mahindra Logistics Limited, we provide customized integrated third party supply

chain and people transport solutions to companies across multiple industries. We
specialize in providing solutions to organization by integrating the right technology.
Brand Philosophy - RISE

We aim to drive positive changes in the lives of all our stakeholders and in the
communities in the three most innovative ways:
 Challenging Conventional Thinking: Be it our thoughts or our actions, we
accept no limits. We believe in challenging the conventional beliefs and Rise above
them.
 Innovative Use of Our Resources: In our attempt to Rise, we seek to use
our resources in the most innovative manner. This, we believe, will drive us forward.
 Enabling People to Rise: We believe in making a positive change in our
stakeholder’s lives. Be it the employees, partners or customers, our actions and their
outcomes will always enable them to Rise in their lives.
Simply put, Logistics is the business of managing, transporting and delivering goods!
At Mahindra Logistics Limited, we realize this very well. We are determined to create
a logistics system that is unique in nature and robust in its infrastructure, yet flexible
enough to suit the needs and demands of our customers.
Mahindra Logistics aims to rise in all its initiatives with unique solutions to serve good
warehousing, transporting and to people transport needs.
Therefore, our Manifesto – CORE is
 It is the place where we belong.
 We do all it takes to keep your business moving.
 We are at the core of on time deliveries and optimized assembly lines.
 We are at the core of complex supply chains.
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SUBSIDIARIES
We focus on adding considerable value to various business offerings through our
subsidiaries, 2X2 Logistics and LORDS Freight (India) Pvt. Ltd.
Mahindra Logistics’ subsidiaries offer automotive outbound and international logistics
solutions.
MLL SUBSIDIARIES
2X2 LOGISTICS
Mahindra Logistics has partnered with Indian Vehicle Carriers Pvt. Ltd.
(IVC) to form a new company called ‘2x2 Logistics’ offering automotive
outbound logistics solutions to four-wheeler and two-wheeler industries.
Mumbai based IVC is one of the leading vehicle carrier solution providers in
India and has over three decades of experience in catering to automobile
manufacturers across India.
This is the first time that MLL has added significant assets to its outbound
business - 100 vehicle carriers to begin with and an intention to ramp up
capacity shortly.
The new company will offer global standards of service and technology with a
special focus on innovative designs, highest degree of visibility and quality
control. This partnership will strengthen MLL’s existing pan India network and
allow assets to freely operate, thereby bridging the gap between demand and
supply.It will also allow MLL to fulfill one of its core values of considering every
customer a partner, evolving to make every customer a co-owner.
LORDS MLL
MLL acquired a majority stake in LORDS Freight (India) Pvt. Ltd. which was
founded in 2011 by a group of Industry professionals.
LORDS, specializes in international logistics solutions and is based out of

Mumbai with a presence in most major cities in India. LORDS brings together
some of the best minds in the Indian logistics industry. The executive
management team has a cumulative experience of over 100 years in various
aspects of the logistics business including freight forwarding, customs
brokerage, transportation and warehousing.
MLL’s capabilities in international freight forwarding in addition to LORDS’

strong global network partnerships, capabilities in both air & ocean forwarding
for exports and imports add considerable value to MLL’s service portfolio.
LORDs offers services like Airfreight & Ocean freight operations, Customs
Brokerage operations, Airfreight Inbound & Outbound Services, Project Cargo
services- Domestic & International, PMO support- Critical Implementations,
FCL/LCL services.
46
Mahindra logistic have industries, solutions, technology. It provides
many facilities their employees. so that they work do easiest and
very well mannered.
Industries.
AUTO & ENGEERING consumer & pharma
Auto & outbound E-Commerce
1. AUTO & ENGEERING: - Today, the Automotive Industry is one of the biggest
industries contributing to the world’s economy. Global auto components logistics is
estimated to be around USD 91.58 billion in 2015 with India’s logistics cost in auto
components industry being around 3-4%. Reverse logistics cost in Indian auto and
auto components industry is estimated to be around 0.5-1% of the total auto and
auto components industry. Auto companies have the most complex supply chain
architecture. The Inbound Transportation and Production Supply Chain for Auto
OEMs, Auto Component Manufacturers and Engineering companies have similar
requirements although the scale and complexity differ. In order to build synergies
across these two giant industry verticals, Mahindra Logistics made A&E (Auto &
Engineering) as one integrated business vertical.
2. CONSUMER & PHARMA: - Today, consumption is the sole end and purpose
of all production with the interest of the producer ought to be attended to. This is
where we place ourselves in the lives of giant consumer goods industry. We ensure
that the producer of this industry fulfills consumer needs by creating timely availability
of the products. This effort is simplified by our innovative solutions which are further
customized to match your unique requirements.
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3. AUTO & OUTBOUND :- This industry operates with 3 geo clusters with
volume balance posing challenges in managing logistics and on-going
planning, collaboration and synergy for optimization of capacity and cost
required. The growth of this vertical is primarily related to transportation.
Most of the enterprises vendor maintained inventory management and
complex distribution network compel Logistics service providers towards
multi-functional capabilities. We have identified how to integrate efficient
processes to simplify our distribution network. We are aware of the product
reaching the end consumer in its optimum quality, and we make sure that we
do not compromise on that agenda.
Being an expert in auto inbounds process we realize the role of all these
factors and we aim at bringing forth excellence in our auto outbound
management
4. E – COMMERCE: - The growth is driven by rapid technology adoption,

favored demographics, growing internet user base & the various convenience
options provided to the end user by the companies. The important KPI’s of the
industry include customer experience by ensuring timely delivery of the
product with the option of Cash on Delivery and reverse logistics.
48
SOLUTIONS
WAREHOUSING
TRANSPORTATION
STORES & LINE FEED
VALUE ADDED SERVICE
PEOPLE TRANSPORT
SOLUTIONS
FRIEGHT FORWARDING
1. WAREHOUSING :- We manage close to 5 million sq. ft. of warehouse space at

multiple locations across the country. These include a mix of built-to-suit, dedicated
and multi-user warehouses. We are also adept in handing the existing warehouses of
customers to generate optimal efficiencies in them. Our warehouse operations use
latest and proprietary technologies for improving productivity and increasing
efficiency. Our system runs on a structured process flow for each sub operation and
for tracking metrics. Technologies like Clean Sheet for process wise manpower
requirement, layout optimizer for optimizing layouts, Knap Sack for optimal storage
pattern analysis and Customized MHEs etc are used on a regular basis across the
network.
2. TRANSPORTATION: - With over 25,000 vehicles plying every month, MLL is

best positioned to cater to any transportation requirement across the country. The
sheer scale of operations and the technologies deployed ensure that the solutions
offered are economically efficient and are also time bound. Our fully integrated
system includes services like Shipex TMS system, Automated reporting of KPIs,
Consolidation and distribution through cross docks, well defined scheduling and
tracking processes etc.
49
3. STORES & LINES FEED: - Our Stores and Line Feed (SLF) processes work in
sync with the customers’ production & line schedules. It undertakes sequencing, kits
& Trolley loading accordingly to the requirement. The SLF process also takes care of
warehouse management & inventory control along with the allied documentation
activity.
Our SLF process undertakes other functions like active inventory tracking on regular
basis, triggering re-order flags, receipt & physical verification of materials, creating
kits, Trolley filling and managing high value parts.
4. VALUE ADDED SERVICE: - MLL is known for its operational excellence in

Warehouse management and in/out-bound transportation. In order to exceed
expectations further, MLL also offers various Value Added Services (VAS) to all its
customers.
Typically, these services help the customers immensely by eliminating a need to
depute special/dedicated manpower to monitor & execute such activities thereby
avoid/eliminate transportation delays that may arise due to them.
5. PEOPLE TRANSPORT SOLUTIONS: - We cater to the employee

transportation needs of enterprise customers by providing regular Pick-up and Drop
services. Our solutions are fully IT enabled – we can offer in house or customized
solutions to every need.
Our asset-light model gives us flexibility & scalability whilst allowing us to focus on
our core competence of integrating resources and providing a one-stop solution to
our customers’ people transport needs.
6. FRIEGHT FOREWORDING :- MLL holds a majority stake in LORDs and is the

leading provider of freight forwarding .MLL’s capabilities in international freight
forwarding in addition to LORDS’ strong global network partnerships add
considerable value to MLL’s service portfolio.
50
TECHNOLOGIES
SARTHA
CONTROL TOWER
DISHA
MILES
WARE HOUSE
MANAGMENT SYSTEM
TRANSPORT
MANAGMENT SYSTEM
1. SARTHA: - MLL deployed an integrated system particularly for its PTS

business, known as Sartha. Known to be one of the most robust and
intelligent system currently available, Sartha’s essence lies in the following
three steps:
Planning
The planning phase consists of feeding the system with details regarding the
names, gender and pick-up/drop locations of each of the passenger along
with available car and corresponding details. The details of the available
drivers are entered into the system in a similar way. The system then studies
the vehicle data and looks for problematic areas like the mechanical condition
of the car, the road worthiness of the vehicles, fuel levels of the car amongst
other parameters. The RTO license, back-ground check and knowledge of the
routes come as a part of the driver screening. Vehicles and driver that comply
with the fed standards are only considered for the next stage i.e. routing and
scheduling.
Routing and Scheduling
Basis the above data, Sartha automatically gives out vehicle-wise planned
route. The system studies each of the passenger details (gender, pick-up/drop
locations, timelines etc.) to give out the best possible combination of cars and
51
its passengers. This finished report is then circulated to the all passengers the
respective drivers. The operations supervisor has an access to the entire fleet
route and its passenger information.
Execution
Once the vehicles depart to drop/pick-up the concerned passenger, the
system is automatically updated. The Control Tower Operations (CTO) is
informed in case of any deviations from the route or inordinate stoppages
enroute The CTO then physically calls the concerned vehicle and
understands the reasons of deviation and suggests remedies accordingly.
In case of female passengers, an IVR call tracks their safe arrival at their
place of residence. The lady passenger simply needs to answer her phone
and follow simple instructions to confirm her safe arrival at her destination
after disembarking from the car. This confirmation is updated for each and
every female passenger and for each and every car round the clock.
The primary stake holders - Supervisors, Drivers & passengers, have access
to Sartha through a Smartphone app which is very convenient and easy to
use.

2. CONTROL TOWER: - The Control Tower Operations (CTO) at MLL is

the nerve centre of everything we do. The track of all movements, goods or
passengers is taken care of, round the clock, by the CTO. The key activities of
the CTO are:
 Status tracking of each vehicle.
 Addressing any concerns of the passenger or drivers.
 Responding to emergencies through multiple mechanisms.
 Informing all stakeholders on various activities like:
1. In transit Delays (with reasons)
2. Departure status
3. Expected time of arrival at destination
4. Delivery status
All the vehicles deployed are GPS enabled which gives the CTO the exact
location status of the vehicle. Any deviation from the set route plan or delays
beyond a point of time are highlighted at the CTO. Upon this, the CTO
immediately reaches out to the concerned vehicle to understand the reason
for such aberration and guides them accordingly.
These state-of-the-art features and processes have helped MLL CTO earn the
reputation of a “Proactive Communicator” and are relied upon equally by the
drivers, passengers and customers.
3. DISHA: - Dock Intelligent Scheduling Application (DIShA), is a

sophisticated piece of software that takes care of any congestion in the
warehouse, by scheduling the vehicles to a particular bay as per their time of
their arrival, availability of bay, criticality of the goods in question and typical
loading/unloading time required for the particular type of goods .
52
If the number of bays is less than the number of vehicles that are expected to
load/unload the goods, it leads to congestion in this area.
Hence, DIShA allocates a particular bay and a particular time to the arriving
vehicles. By blocking the bay time-wise for particular vehicles, every stake
holder gets can schedule their activities according to that time.
The stakeholders’ benefits are:
 Vehicles need not endlessly wait for their turn to come.

 The vehicle staff can schedule their hygiene, maintenance and rest
needs as per their loading/unloading schedule.
 The bay staff need not worry about delays in loading/unloading of any
critical goods as the system is smart enough to allocate the specific time.
 The security staff at the plant level needs to deal with only the
authorized vehicles whose time has been allocated.
 The number of vehicles in the warehouse premise is also reduced as
only authorized vehicles would be found there
 The vehicle can use their interim spare time to more constructive use
like maintenance or rest.
 The general public at large also faces reduced congestion as only the
relevant trucks would be found in the warehouse area.
Since the system allocates the time by depending a complex set of algorithms
basis the data pre-fed data, the transparency level increases manifold.
4. MILES: - MILES is capable of not just transport management but capacity

planning based on sales forecasts, execution visibility, financial reporting and
freight audits. It is integrated with hand Held Terminals (HHT) and Global
Positioning System (GPS) based vehicle tracking system for complete control
of operations on a real time basis. It can be completely integrated with the
host system for freight order receipt, freight billing and alerts.
Some of the features and benefits can be classified as under:
 Planning
 Execution
 Freight Audit

Transport Planning Features:
1. Business rules and constraint based Transport Orders planning e.g.
vehicle availability / Reporting, zone/lane compatibility, product compatibility,
Vendors business split etc.
2. Pro-Active Alerts on daily demand v/s supply of trailers
3. Review mechanism for trailer allocation v/s commitment by transport
vendors
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Transport Execution Features:
1. Operational update from field through Hand Held Terminals (HHT) for
vehicle reporting, quality, product storage, product quality, load quality and
completion.
2. In Transit visibility based on the transit status of the shipments, via
GPS, voice or email.
3. Delivery management including Proof of Delivery at delivery location,
via HHT or web.
4. SLA based transporter ratings.

Freight Audit Features:
1. e-Delivery (POD) / POD based trigger for Accounts Payable and
Receivables work flow
2. Auto Invoicing for shipments with cost element break up – transaction
accuracy
3. Auto approval based on defined business rules – reduced billing
cycles.
5. WAREHOUSE MANAGEMENT SYSTEM: - MLL WMS helps

transform conventional warehouses by improving efficiency and productivity of
operations within the warehouse. MLL WMS automates receiving, put away,
picking, and shipping in warehouses and supports inventory cycle count
planning and execution.
This system also adds levels of control that permit users to better plan and
manage resource and storage space in warehouse operations. It also
provides management with real-time visibility to inventory and order status
across different warehouses of the organization. WMS manages tasks and
monitors performance in each of the following primary functional areas:
Receiving
1. Purchase Order Management
2. Receipts against PO
3. Goods Receipt Note (GRN) Creation
4. Boxing and Inspection of goods
5. GRN Confirmation
Storage & Put Away
 System Directed Intelligent Put Away

1. Optimized Travel Path
2. Optimized Storage Space
3. Segregation and Storage of items based on following
4. Packaging
5. Item Category
54
6. Type of Location
 Put Away Confirmation

Picking & Shipping:
1. System Directed Picks
2. Travel Path Optimization
3. Pick Methods
4. FIFO / Lot Control / Near Expiry / Space Optimization
5. Packing of goods
6. Capture of Shipping Details

Order Processing
 Sales Order Management

 Order Processing
1. Processes orders based on stock availability
2. Grouping of orders based on
3. Picking Sequence
4. Shipping Sequence
 Stock Reservation against processed orders
Inventory Management:
1. Cycle Counting Plan based on
2. Location / Zone / Item / Item Category
3. Cycle Counting Plan Execution
4. Auto Adjustment of variations with appropriate approvals
5. Replenishment Strategy
6. Replenishment based on stock levels in the locations
7. Replenishment from based on defined rules

Highly Configurable:
1. Role based User Access
2. Supports Multi Company Single Warehouse operations
3. Supports Single Company Multi Warehouse operations
4. Flexible warehouse locations categorization
5. Flexible Picking and Put Away Strategies definition

Host System Interface:
1. In house technical team capable of meeting interface requirements with
host systems of customers
2. Capability to upload most masters and transaction data thru pre-
defined excel templates
55
6. TRANSPORT MANGMENT SYSTEM: - MLL MPTS SOLUTION
MLL MPTS solution is capable of transaction management of operations
against agreed SLA's, Route Optimization and GPS based vehicle tracking
integrated modules along with Hand Held Terminal (HHT) for real time
operational data capture.
Mahindra logistics brings the expertise of deploying the solution according to
Indian conditions to specific BPO/ITES/Airline needs This makes Mahindra
Logistics a unique service provider, with capabilities of optimized routing
solutions and execution of the same with measurable performance
parameters.
The key aspect of this solution is that it is modular in nature and customers
can pick and choose to deploy the modules based on their business
requirements.
The salient features of this service include:
TRANSPORT PLANNING
Routing and Scheduling System

Features
1. System can store employee's master data along with their geo codes.
2. Roster system can process employee working schedules. This could
be in the form of daily rosters in a specific format or weekly schedules.
3. Route and vehicle optimization planning is done through the routing
and scheduling system taking in account business rules and constraints.
4. Trip assignment sheets can be printed out from the system and handed
over to the respective vehicle drivers.
5. If required, system can integrate trip information through an SMS
server for sending SMS to the employee stating the expected time, vehicle
and driver who would be picking up the employee. System also supports Pull
SMS for employees.
Employee Configuration:
 Employee Category, shift time wise transport modes.

 Female employees (No first pick up / last drop)
 Maximum time for employee in the vehicle during transit.
Route Configuration:
 Rush hour time windows (traffic slowdown) for route planning
 Updated maps from leading vendors for new road networks and
restrictions
 Navigational maps used which covers one ways and detailed road network
to ensure distance accuracy
56
Vehicle Configuration:
 System configured to allow the number of employees that can be
accommodated in a vehicle, depending on the type and category of vehicle /
employee.
 System has the flexibility to allow for the maximum number of KMs and / or
time that a vehicle can travel in a day / routing period.
Benefits
1. Employees can know the status of his/her transport schedule on mobile
using push or pull SMS facility.
2. Improved operating metrics (Fill Factor/distance) with Optimized
Routes
3. Analyzed resource deployment strategies prior to implementation
4. Automated routing process with routing consistency
5. Maximized asset utilization
6. Reduced re-routing time for new employees
7. Determining proper service frequency
8. Increase on-time pickup/drop off
9. Optimizing time on the road for resources
Transportation Execution
Features
1. Customer / Vendor Contract management with the capability to capture
contract SLA's and transaction quality checklists
2. Operational performance monitoring
3. Vendor performance monitoring
4. Transaction based billing and provision
5. This system is integrated with HHT and Routing and Scheduling
systems to generate Plan vs. Actual for all trips where all the modules are
deployed
Benefits
1. Operational performance control
2. Contractual performance control
3. Freight Audit
4. Real time Plan vs. Actual deviation alerts
Advanced Vehicle Tracking System

Features
57
1. GPRS based vehicle tracking system that takes planned route input
from the routing and scheduling system. It returns information in response to
that plan to the centralized monitoring system.
2. Comprises of GPS and RFID card readers fitted in a car for employees
to swipe at the time of boarding and de boarding the car.
3. The feed from car GPS is revived at central system at every second.
4. Centralized monitoring system interprets the same and is capable of
showing the updates at specific time interval based on the business
requirement.
Benefits
1. Employee Safety & Security by monitoring driving habits e.g. Vehicle
speed, acceleration & harsh-braking
2. Monitoring route adherence / deviation
3. Emergency Response Management (SOS Button)
4. Timely Reporting of Employees by monitoring movement of vehicles as
per plan
5. Ability to monitor the vehicle to reduce non plan stoppages.
6. Pick up and Drop off of employees within specified time limits (Geo
Coding)
7. Accurate Distance Measurement with special adapter for measuring
the distance based on the odometer technology.
8. Integrated with Routing & Transaction Systems.
58
COMPANY NAME MARKET SHARE Care Sold During 2011 - 2012
MARUTI 40% 10,06,316
HUNDAYI 13.88% 388,799
TATA MOTORS 13.12% 312,385
MAHINDRA & MAHINDRA 7.89% 210,700
TOYOTA 6.46% 141,980
HONDA 3.91% 54,427
CHEVROLET 3.75% 110,048
FORD 3.20% 92,748
VOLKSWAGEN 2.95% 78,261
SKODA 1.71% 34,089
RENAULT 0.50% 3,969
Mahindra’s competitors
59
Supply Chain Management
Our focus has always been on providing end to end solution. Our capabilities
a plethora of logistic activities are a reflection of this focus.
60
Mahindra logistic ltd. & job satisfaction :- MLL realizes that employees are
the backbone of the logistics industry and hence. ‘employee welfare forms an
dispensable component of its social and environmental imperatives.
We can measure job satisfactact job on different emploees work leavel.(it is

based on personal interview).
mng
r
assistant manager
senior executive
executive
supervisor
worker
It is a hierarchy form. Its represent that different different employees present

different different roles in a company. Its top managerial position play
managing staff in different situations. Below the managerial position other
position holding employees follow their manager’s instructions.
Different position holding employee have different view of job satisfaction

regarding. Who given below:-
Position level Satisfaction percentage level

Worker 55%
Supervisor 30%
Executive 50%
Senior executive 45%
assistant manager 25%
Manager 25%
61
Tranfer
30
50 senior executive
executive
labour
manager
super visor
assistant manager
60
25
promotions
30 25
senior executive
executive
labour
supervisor
20 30 assistant manager
manager
50
62
Salary
30
45
senior executive
executive
labour
manager
60 30 assistant manager
supervisor
40
30
Mahindra take some initiatives regarding their employee’s welfare who

present that its very concerned about employee’s satisfaction or welfare.
Mahindra also make some policies and organized health checkup plains.
Initiatives
1. Village Adoption:- As a part its oorporate social responsibility Mahindra logistic
limited has adopted a village .1Ied Aavre in shahapur block District thane no NH3.
This village is deprived of basic infrastructure hygiene and heakh. MLL aims to work
towards improving the quality of life for the communities living in this village with
initiatives like:
Infrastructure development: - School infrastructure. Road construction.
Healthcare training: - .few drinking water. Health check-ups etc.
Educational assistance: - Scholarships to school children.
2. Driver Welfare: - MLL realize that drivers are the backbone of the logistic industry
and hen. Driver and safety forms an indispensable component of its social and
environmental imperatives.
63
3. Employee Social options:- In line with MLL mission that every MLL employee will
contribute time and efforts toward community building, it follows its group initiative
employee social options.
Mahindra believe that their business growth and success rests on the
shoulders of Drivers. Hence, Driver engagement and welfare activity is one of
the most important parts of the Community engagement program. In the year
2014-15, Mahindra Logistics' conducted about 50 events at 24 different
locations across the country with close involvement of about 500+ Mahindra
Logistics' employees benefiting about 4500+ drivers.
The activities at the event ranged from:
 Health Checkup camps
 Group personal insurance for drivers
 Celebrating the Driver’s Day on September 17th
 Distribution of Pillows, toys, clothes, torches, stationary, food grain,
fruits etc. to the driver’s families
 Scholarships to the children of drivers families who had completed 7th,
10th, 12th and Graduate examinations and wished to pursue further education
 HIV/AIDS Awareness programs for Drivers
64
Hypothesis
CASE STUDY
Private sector:
BAE Systems This case study is based on information generated by a CIMA-funded research
project, undertaken by Dr Mostafa JazayeriDezfuli (Manchester Metropolitan University) and
Professor Robert Scapens (University of Manchester).
BAE Systems – the balanced scorecard and the culture change

programme. The balanced scorecard approach was implemented at BAE Systems partly
as a consequence of an existing culture change programme. It supported the cultural change
project by reinforcing its five fundamental values and encouraging behaviour that was
consistent with the company’s goals and values.
About BAE Systems: formation and management structure In 1979, British

Aerospace was privatised. In 1999, it was Europe’s largest defence company, and on
acquisition of Marconi Electronic Systems later that year, it became, as BAE Systems, the
world’s secondlargest defence contractor. With more than 100,000 employees in nine
‘home’ markets (UK, USA, Sweden, Saudi Arabia, France, Italy, Germany, Australia and
Canada), the company enjoyed annual sales of over £12 billion, an order book of £41 billion,
and had customers in more than 80 countries. The Executive Council of BAE Systems
formulates corporate strategy, and the company is divided into business units. This case
study focuses on the Customer Solutions and Support business unit, which is responsible for:
● Service-based prime contracts, programmes and equipment transitioned from the
programmes organisation, and the avionics and operations business units;
● Generic support services; and
● The development of opportunities in adjacent markets. The unit plans to focus its growth
efforts on the following three areas:
● Customer support;
● Commercial aircraft; and
● Defence systems.
The change programme at BAE systems
65
Senior management decided to implement a comprehensive change programme, which
involved:
● Dismantling the conglomerate that had existed since 1979;
● Replacing this with interlocking businesses that would enrich one another and generate
competitive benefit for the entire enterprise; and
● Reducing reliance on managerial authority, formal rules and procedures and narrow
divisions of work.
At the heart of the culture change programme was BAE’s balanced scorecard. The change
process was aided by the fact that the information on which successful operation of the
scorecard relied, was extractable from BAE’s existing SAP R/3 (ERP) system. Thus the
scorecard was central to the organisation’s control system. (BAE used ‘traffic light’ reporting
to highlight deviations from expected performance).
The impact of the balanced scorecard on management control

BAE Systems used SAP to enable it to report the monthly results of the scorecard in a
visually appealing way online. Thus, the information was shared with all company
employees, and this was viewed as key to management control. Importantly, the reports
contained layers of hierarchically linked data, which allowed employees to view data from a
top-down or bottom-up perspective. (This means that employees can both drill down to
identify the factors contributing to performance results, or drill up, to affirm how their own
work contributes to the performance of their business unit and to the business as a whole).
When the scorecard was launched in 1997, it included only eight performance measures.
The number of measures was deliberately limited, to allow the measurement system to
evolve over time, and indeed the scorecard now includes more than 70 measures, which are
organised into the five ‘values’ to facilitate goal setting across different departments and
company levels.
Performance
Our key to winning Measure
● Business unit 3yr cash flow ● Business unit value – 10 yr ● Growth in order book ● Change
in overall EFQM* score ● Change in EFQM* score on Business
Partnership
Our Future Measure
● Growth of supplier assessment rating ● Sales delivery through partnership ● Change in

EFQM* score on impact on society ● Reduction in supplier base result score
Customer
Our highest priority Measure
66
● Change in EFQM* ● Sales prospects conversion versus planned ● Growth in customer
satisfaction Innovation & technology Our competitive edge Measure ● Increase in nominees
for Chairman’s award ● R&D % of turnover ● Number of best practice case studies ● Value
of new lines of business ● Number of employees on intranet
People
Our greatest strength Measure
● Personal Development Plan deployment ● Change in EFQM* and people satisfaction score
● Opinion survey feedback
Public Sector:
Health Action Zone
Developing and applying a scorecard for a Health Action Zone (HAZ) (based on ‘A
Practitioner’s Approach to the Balanced Scorecard’, by Allan Mackay)
The operating context
Following initiatives of previous governments (Compulsive Competitive Tendering and the

Citizen’s Charter), the best-value regime was introduced, in a framework aimed at improving
performance management in the public sector by allowing public authorities to set the level
and standards of the service they provided.
Where private sector organisations formulate strategy to seek competitive advantage and
create value for shareholders (e.g. by maximising existing opportunities and developing
innovative products and processes) the strategic priorities of public sector organisations are
laid out in government policy, and cascaded in a structured process:
Where private companies must give emphasis to formulating innovative competitive

strategy in order to generate sufficient operating profit to sustain and thrive, the strategies
of public sector organisations must be focused on achieving performance targets and
meeting service delivery agreements with stakeholders.
Internal Structure
In this case study, the governing board and functional heads of the Health Action Zone
formed a top team (known as the ‘corporate team’) to decide on strategy and their priorities
which were then cascaded down through the organisation.
The corporate team took responsibility for translating the bold aspirations of the policy
document into a coherent set of performance measures and targets, with rigorous
performance reviews. Project teams were then formed for distinct streams of work,
designed so that those individuals best placed to ensure delivery of targets had real
ownership for doing so.
Ensuring ownership of targets
67
To ensure ownership of performance targets, it was vital that stakeholders shared a
common understanding of the policy requirements, and the values that needed to promote
their attainment. This created a shared sense of purpose and helped participants
understand:
● What had to be accomplished;
● Why the work was worthwhile; and
● How the goals could be achieved.
The quadrants and measures in the HAZ scorecard had to be relevant to the employees
whose behaviour it was seeking to change. This was achieved by constructing a ‘corporate’
scorecard that reflected:
● The values and beliefs;
● Bold aspirations;
● Strategic aims and priorities;
● Key areas for action; and
● Time required for achievement.
Building the ‘corporate’ balanced scorecard – understanding organisational issues

and value drivers
The first critical step in the developing the balanced scorecard was for the corporate team to
understand the issues facing the organisation. This is the process of establishing:
● The conceptual and operational model of the organisation; and
● The narrative that explains how value is created and delivered, based on strategy,
stakeholder interests, ongoing management initiatives and other contemporary frameworks
(e.g. best value).
Once these issues had been addressed and agreed, it was necessary to:
● Define the scope of the scorecard project;
● Understand the strategic issues facing the organisation as a whole, using whole systems
analysis;
● Understand higher-level guidelines, policies and strategic priorities; and
● Define the scorecard architecture – the design principles leading to the development of a
template.
68
This process focused on the critical business issues (CBIs) – the highest priority problems and
opportunities that had to be addressed in order for the strategic vision to be fulfilled.
Strategic mapping was used to identify the CBIs.
Importantly, the first step identified:
● The key actions to be addressed; and
● The processes needed to include stakeholders.
The HAZ focused on the tangible results it needed to achieve, and on how such results would
be demonstrated to an acceptable level.
Drafting the scorecard In designing its draft scorecard, the HAZ did the following:
1. Gained (senior) executive commitment and appointed a scorecard ‘champion’ The

‘champion’ was not a member of the corporate team, but was a strong and influential leader
who had a pivotal role with influence at all levels in the HAZ.
2. Selected an implementation team The team comprised people from different

departments and functions. As well as securing a blend of functional skills this ensured that
all the diverse interests represented were involved and had a sense of ownership for the
project success.
3. Determined overall scorecard structure This step involved holding a workshop for the
implementation team to identify appropriate scorecard perspectives. As with many public
sector organisations, the HAZ felt the financial perspective included in Kaplan and Norton’s
generic scorecard to be inappropriate, and instead replaced it with a ‘stakeholder’ quadrant.
At this point, consideration was also given to the feasibility of cascading the scorecard
throughout the organisation, and its capacity for any potential customisation.
4. Undertook a strategy mapping process To maintain a coherent approach to the

scorecard development process, the HAZ completed a process of strategy mapping –
following cause and effect logic to link the desired outcomes from the strategy with their
drivers.
5. Cascaded the scorecard through the organisation Recognising the importance of

ensuring that employees understood both organisational strategy and their role in delivering
this, the HAZ expended resources in creating this understanding through workshops and the
circulation of scorecard bulletins. It was equally important to balance the need to develop an
appropriate and relevant scorecard with time requirements to avoid delay and a loss of
commitment. The overarching aim, however, was to attain a true alignment of strategic
objectives throughout the HAZ.
6. The second workshop Once the corporate team was confident that it had a robust view
of the HAZ strategy, a second workshop was arranged to introduce a wider audience into the
scorecard deployment process. Staff attending divided into working groups to weigh the
identified objectives and measures in terms of priorities and timetables.
69
7. Pilot schemes To test whether or not the scorecard concept was worthwhile, a mock-up
of the balanced scorecard was rolled out in the HAZ’s operations management division.
Following the pilot study, the corporate team again met to establish a final consensus on the
measures and decisions reached, and to consider:
● How rewards and remuneration packages could be aligned with the measurement
system; and
● How to communicate the proposed innovations and changes to all members of the
organisation.
Following the above process led to a definition of:
● A preliminary corporate balanced scorecard;
● A scorecard template that could be deployed in other areas of the HAZ; and
● The identification of critical success factors (CSFs) and their associated measures – key
performance indicators (KPIs).
Research
Methodology
70
RESEARCH METHODOLOGY
I researched Gail India ltd. At noida company address gail jubilee tower sector 1
noida(u.p.). In the preparation of this report, the researcher the data from different
sources. The sources of data as follows:
Primary data: This data is gathered from first hand information sources by the
researcher, this data collection from employees, managers, clerks etc., by
administrating the questionnaire having face to face interaction with employees.
Secondary data: This will give the theoretical basis required for the report
presentation which can be available from various sources such as magazines, office
files, inter office manual and web site.
DATA PROCESSING AND ANALYSING
Data, which is gathered by administering questionnaires, was processed in simple

manner to determine the level of satisfaction among employees. Every response was
assigned some score based on this overall satisfaction level was determined.
Data collected is carefully tabulated and analyzed by using satisfaction methods and
also various graphs are used.
PRIMARY RESEARCH METHODOLOGY:-
DATA ANALYSIS
1. I feel encouraged to come up with new and better ways of doing things.
Strongly Disagree Neither Agree

Disagree Agree
nor
Disagree
25 10 5 60
71
25
strongly
disagree
disagree
60 10
neither agree
nor disagree
strongly
agree
5
Interpretation:-60% people agree because they feel encourage come up with

doing things for new & better ways. But 5% people netural. They don’t have any
point of view regarding encouragement 10% or 25% people not satisfied.
2. My work gives me a feeling of personal accomplishment.
Strongly Disagree Neither Strongly

disagree agree nor agree
disagree
30 5 10 55
72
60
50
40
30
20 Series 1
10
0
strongly disagree disagree neither agree nor strongly agree
disagree
Interpretation:-55% people strongly agree because they feel that their work given
personal accomplishment feeling. They are happy from their work. 10% people not
agree or not disagree 30% and 5% people are not satisfied with their work. There
reasons was situation problem like long working hour. Working condition.
3. I have the tools and resources to do my job well.
Strongly Disagree Neither agree Strongly agree

disagree nor disagree
70 10 10 10
73
80
70
60
50
40
Series 1
30
20
10
0
strongly disagree disagree neither disagree strongly agree
nor agree
Interpretation:-70% people are strongly disagree because they feel lack of

resources and tool facilities who reducing their work quality. 10% people not any
point of view. 10% people agree and 10% people disagree .
4. On my job, I have clearly defined quality goals.
Strongly Disagree Neither Strongly agree

disagree disagree nor
agree
70 20 5 5
74
strongly agree
neither disagree nor agree
Series 1
disagree
strongly disagree
0 10 20 30 40 50 60 70 80
Interpretation:-70% people disagree because companies don’t provide

information about goals so sometimes create misconception. But 5% people
agree who are in good relation with company. 5% peoples are neutral. 20%
people are disagree
5. My job makes good use of my skills and abilities.
Strongly disagree Neither Strongly

disagree disagree nor agree
agree
8 20 2 70
75
strongly disagree
disagree
strongly agree
Interpretation:-70% people are agree because they working in interest

based profile. Their skill and abilities use properly. 8% people or 20% people
disagree because they work in on wanted profile. Career reason or financial
reasons. 2%people are neutral.
6. Senior managers visibly demonstrate a commitment to quality.

agree
10 10 70 10
76
80
70
60
50
40
Series 1
30
20
10
0
strongly disagree disadree neither disagree strongly agree
nor agree
Interpretation:-70% people are neutral because they don’t show any

personal issues from company or senior manager. 10%people agree who is
satisfied with company or senior managers. 10% people are not satisfied.
7. How satisfied are you with your involvement in decisions that affect your
work?

agree
40 20 10 30
77
45
40 1
35
30 1
25
Y-Values
20 1
15
10 1
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5
Interpretation:-40% not satisfied because any their involvement will

always favor for their work. 30% people agree because they know very well
that sometime their involvement may be harmful for their work or company.
8. Considering everything, how satisfied are you with your job?

disagree disagree agree
nor agree
40 30 10 20
78
45
40
35
30
25
20 Series 1
15
10
0
nor agree
Interpretation:- 40% people disagree because consideration is diver

process it’s create stress and divert the employee brain. So satisfaction level
of jobs is very low. 20% people are agree. 10% people neutral.
9. How satisfied are you with the information you receive from management
on what’s going on in the company?

disagree disagree agree
nor agree
10 10 20 60
79
strongly disagree
disagree
strongly agree
Interpretation:- 60% people strongly agree because they satisfied from

information. Who received from management. According to them
management provide all info who are necessary their job regarding.20%
people are neutral they don’t interested in managements information. 10% not
them is an unit of company. It’s necessary that every information should be
right.
10. How satisfied are you with your opportunity to get a better job in this
company?

agree
5 5 5 85
80
90
80
70
60
50
40 Series 1
30
20
10
0
nor agree
Interpretation:-85% people are satisfied with their working in current

company. 5% people are not satisfied they find better opportunity. 5%people
are neutral.
11. The company clearly communicates its goals and strategies to me.

agree
10 5 10 75
81
10
10
strongly disagree
dsiagree
strongly agree
75
Interpretation:-75% people agree because they know that companies

clearly communicate its goals so that they can achieve the target very well
mannnered.10% people are neutral. 10%people are not satisfying.
12. I receive adequate opportunity to interact with other employees on a

formal level.

agree
3 5 7 85
82
100%
90%
80%
70%
60%
50%
40% Series 1
30%
20%
10%
0%
nor agree
Interpretation:-85% people agree because in company environment

employee interactions with each other in formed level are common. 7%people
neutral and 3% people not satisfied. They feel its not opportunity it’s just an
environment.
13. I have a clear path for career advancement.

agree
20 30 25 25
83
strongly agree
Series 1
dsiagree
strongly disagree
0 5 10 15 20 25 30 35
Interpretation:-30% people not satisfied because career advancement is

useless without opportunity. 25%agree.
14. My job requirements are clear.

agree
60 10 10 20
84
70
60 60
50
40
Y-Values
30
20 20
10 10 10
0
0.5 1 1.5 2 2.5 3 3.5 4 4.5
Interpretation:-60% people are strongly disagree because job requirement

are not clear. 20% people are agree because requirement is always clear.
85
Secondary data refers to data that was collected by someone other than the
user. Common sources of secondary data for social
science include censuses, information collected by government departments,
organizational records and data that was originally collected for other
research purposes.
Sources of secondary data
Secondary data can be obtained from different sources:
 information collected through censuses or government departments

like housing, social security, electoral statistics, tax records
 internet searches or libraries
 progress reports
FINDINGS OF THE STUDY
1. Balanced Scorecard is very useful tool to measure the organizational

performance.
2. The focus of the organizations is now on human capital and its effective
alignment with the overall strategy of organisations
3. Companies are required to look at all aspects of Human Resource architecture

to find out the Human Resource’s influence on the overall strategy of the
company.
4. Companies face challenges in aligning the Human Resource with the overall
strategy of the company
5. To face these challenges, Balanced Scorecard is used to align Human

Resource functions, activity and investment with the overall business strategy.
6. Balanced Scorecard not only focus on the financial measures and but also on
the non-financial measures to measure the organizational performance.
86
7. To align the Human Resource with the overall strategy of the company, seven
step model is used which is formulated on the basis of the Balanced Scorecard.
8.To implement the Balanced Scorecard successfully to human resource: The

objectives that are to be achieved must be well defined and communicated to all the
parties involved in the attainment of the same. The attainment of the strategy is
possible by having a well drafted strategy map which contains a set of objectives that
must be arrived at to attain the overall objectives of the company. A badly designed
strategy map results in a confusing scorecard.
MAHINDRA LOGISTICS LTD.POLICIES & WELFARE PROGRAMMES
This is descriptive type and text based study we can use in secondary
research methodology.
SECONDARY DATA
OVERVIEW
Mahindra Logistics actively works to reduce the impact of the Green House Gases
(GHS) on the environment as a part of its sustainability initiatives. As most of the
activities of MLL involve transportation in some form or the other, GHG reduction is
one of the key focus areas for MLL in the next few years to come.
Initiatives:
As part of this program, some of the initiatives that have been kicked off are:
Green Supply Chain

 Network Optimization
By aggregating the loads across its network, MLL is able to deploy the right
type of vehicle to meet this aggregated loads without compromising on the
service levels ensuring no delivery and damage free deliveries.
87
After studying the volumes and frequencies of each of the transport locations,
an optimal transport network solution is arrived at. Accordingly, Cross Docks
(Consolidation / De consolidation centre) are established. The outcome of this
network Optimization exercise is in the form of a vehicle that achieve its full
capacity utilization to its destination plants thereby optimizing the per unit
consumption of fuel. This results in meaningful GHG reduction leading to a
significant saving of fossil fuel per annum.
MLL is working closely with all its customers, to extend its Network
Optimization concept thereby achieving greater GHG reduction.
A similar concept of network optimization for people transportation is also in
the development.
 Load & Vehicle Optimization
Besides Network Optimization, the redesigning various fixtures / packing /

carrying fixture of the transport vehicle also help in optimizing the capacity
utilization. This directly results in lowering of fuel consumption thereby
reducing the GHG emissions. Activities like these help to accommodate more
number of units in the vehicle thereby reducing the number of trips. The load
is also optimized by taking into account the minimum idle time and dead runs
of the vehicle leading to lower GHG emission for same activity.
Similar activities for reducing dead runs and idle time are being built into the
people transportation vertical as well.
 Some other initiatives for Green Supply Chain include
1. Waste Recycling: E.g. recycling of oil, tyres and batteries
2. Energy efficiency in warehouses and office premises
3. Paper usage reduction
Responsible Product Development
 Alternative mode of Transportation
In order to reduce the GHG emissions further, MLL is also working on
alternative modes of transportation with reduced GHG emissions. As a result,
we have started using rail roads to far off locations where the emission levels
are relatively lower.
 Alternative fuel
Wherever possible, MLL deploys vehicles that work on alternate fuels which
are environmentally friendly. As part of this initiative, MLL uses Reva vehicles
(electrically powered) in some of its customer premises.
In addition, MLL also deploys CNG commercial vehicles in some of its routes.
 New Fleet Induction
One of the newest initiatives taken up by MLL, this aims at replacing the older
vehicles with higher emissions and lower fuel efficiencies with newer vehicles
that are fuel efficient and low on emissions. Since we do not own any fleet
ourselves, the message of sustainability coupled with business logic is being
explained to all its vendors to upgrade their fleet to newer technology
vehicles.
88
Case Study of Falcon
MLL launched an ambitious program to have better control over operations
and improve profitability. The project was named FALCON – Freight And
Logistics Control. The key areas covered in this project were:
 Influenced the behavior of the operator

In order to influence the behavior of the operators who are on 3rd party
contract, MLL launched a series of engagement programs for drivers and
supervisors at the operating sites.
Under the driver engagement program the following areas were covered:
1. Safe / Soft / Efficient driving skills
2. Vehicle Maintenance Tips
3. Health & Finance Management tips
4. Loyalty based Insurance Coverage – Life insurance coverage after 6
months of service and medical insurance after one year in MLL operations
5. Performance Based Rewards & Recognition program.
Under Supervisor engagement program the following areas were covered:

1. Career Progression Path – This involved gradation of people and
chalking out a clear career
2. progression path onto MLL Roles based on performance
3. MLL Uniforms were issued to instill a sense of team and ownership
4. Training – to upgrade their skill sets that would help take up bigger and
higher roles
5. Performance Based Rewards & Recognition program
 Asset Quality Maintenance
1. Scheduled Maintenance - Under this program, a vehicle database is

being created in the system that will provide details of the scheduled service
date and send out alerts for the operations team to schedule
maintenance. This would help minimize road breakdowns of the vehicle and
increase customer satisfaction as well as fuel efficiency.
2. Daily Quality C2 hecks - Under this program the vehicles will be

checked for physical quality parameters like cleanliness, accessories as
required, air pressure in the wheels, fuel and oil checks and other
documentation requirements.
 Asset Productivity
In order to achieve Asset Productivity, MLL has deployed best of breed
technology to optimize the vehicle capacity utilization and route optimization.
89
This is being deployed in selective cities and sites which would enable
increase in productivity of MLL’s operations. This would be possible by
increasing the fill factor of the vehicles as well as reducing dead runs.

 Establishing CO2E Baseline
As part of this exercise, MLL measures and tracks the carbon foot print per
transported person kilometer or per transported vehicle kilometre or per
transported unit kilometer – across its supply chain management and people
transport solutions operations to arrive at the average fuel consumption
across India.
The enormity of data collection is overcome by the use of technology - MILES
solution is deployed for operational data collection and collation.
Benefits of Project Falcon
Some of the estimated benefits of project FALCON are listed below:

1. Vehicle Utilization – In the pilots that have been taken up, it has been
observed that the vehicle utilization went up by 15 – 20%. The vehicle fill
factor increased and idle runs reduced on account of deployment of
technology for running optimization programs
2. Driver & Supervisor Retention – MLL has noticed a reduction in attrition
rates of drivers and supervisors, leading to a better SLA adherence and
customer experience. The Supervisors Career Progression Path has been
rolled out to all Supervisors.
MLL has noticed in pilots that the mileage has improved and on-road
breakdowns reduced on account of vehicle maintenance.
90
LIMITATIONS OF STUDY
However I shall try my best in collecting the relevant information for my research
report, yet there are always some problems faced by the researcher. The prime
difficulties which I face in collection of information are discussed below,
1. The primary source could not be used to collect the data because Balanced
Scorecard concept is not popular among Indian companies.
2. The data is collected through the secondary source so the reliability depends
only upon the data availability.
3. Lastly the duration of the study is only 3 months.
91
CONCLUSIONS
HR Balanced Scorecard has made it possible for HR managers to understand how to
align HR strategy with the overall business objectives. They are able to explain not
only what they are tracking but also how they are performing on essential strategies
for the business.
“We see talent as the emerging single sustainable competitive advantage in the
future. To capitalize on this opportunity, HR must evolve from a Business Partner to a
critical ‘asset manager’ for human capital within the business. The HR scorecard is
designed to translate business strategy directly to HR objectives and actions. We
communicate strategic intent while motivating and tracking performance against HR
and business goals. This allows each HR employee to be aligned with business
strategy and link everyday actions with business outcomes.” – Garrett Walker,
Director HR Strategic, Performance Measurement, GTE
Business environment and the objectives and strategies will continue to evolve, and
HR managers will continue to be flexible and creative in supporting the changes. The
value of the HR Scorecard as a tool is that it can get HR to the new goals and
measures and through the process ensure continued learning and change management.
“Building an HR scorecard should not be considered a one-time or even an annual

event. To manage by measurement, human resource leaders must stay attuned to
changes in the downstream performance drivers that HR is supporting. If those
drivers change, or if the key HR deliverables that support them change, the scorecard
must shift accordingly. In building an HR scorecard for your own company, you may
therefore want to include a component indicating how up to date the HR deliverables
are.”
– Brian Becker, Mark Huselid and Dave Ulrich
HR Scorecard is not a only solution to align the human resource with the overall
business strategy. It cannot solve all the problems of HR.
“HR scorecards are not panaceas. They will not cure a poorly run HR function.
However, they do provide a means by which you can collect rigorous, predictable
and regular data that will help direct your firm’s attention to the most important
92
elements of the HR architecture. Constructed thoughtfully, the HR scorecard will help
your organization deliver increased value to its employees, customers and investors.”
– Brian Becker, Mark Huselid and Dave Ulrich
RECOMMENDATIONS
To implement the Balanced Scorecard successfully to Human Resource, the following

points should be kept in mind:
1. Find a champion or key executive sponsor: Enlist the aid of a key executive,
an influential line manager and the head of HR to champion the
implementation of the HR scorecard.
2. Create a need: Either build up the potential of a business threat or focus on

the great opportunity that can be exploited if the HR scorecard is put in place
and used well. The more compelling the opportunity or the greater the threat,
the more urgency the HR scorecard will have.
3. Shape a vision:. Show that with a well implemented HR scorecard, the firm
will have a strong and sustainable competitive advantage.
4. Encourage commitment and involvement: When the people most closely

involved have information about the HR scorecard, understand what it will do
and have participated in shaping it, they will become committed to it. Make it
possible for as many people as possible to generate that kind of commitment.
5. Build the enabling systems: A good HR scorecard always requires financial

investment, management support and investment in technology. Put those
ancillary systems in place and the scorecard project will be able to move
forward rapidly.
93
6. Have early success and demonstrate progress:. If the HR scorecard can solve
a long standing problem or do something significant, people will notice. That
will create momentum, which can then be strengthened with regular updates
and validation programs.
7. Sustain the effort:. To keep the HR scorecard relevant, update it frequently.

Make an ongoing investment in the methodology. People will gradually get
onside with the scorecard as they see what it is achieving.
8. The major step to welcome the change must be taken by the top management.
The scorecard technique if is to be successful requires the full support and the
commitment of all levels of the management hierarchy.
9. Many managers believe that they will reap the benefits of the Balanced
Scorecard by using a wide range of non-financial measures. However, care
should be taken to identify not only lagging measures that describe past
performance, but also leading measures that can be used to plan for future
performance.
94
Reference and further information sources
Books: -
 Ahn, H (2001) Applying the balanced scorecard concept: an experience report, Long
Range Planning, Vol. 34
 Ashworth, G (1999), Delivering shareholder value – through integrated performance
management, UK: Financial Times
 Ashworth, G and James, P (2001), Value based management, delivering superior
shareholder value, UK: Financial Times
 Brewer, P (2003) Putting strategy into the balanced scorecard, International
Federation of Accountants, Articles of Merit Competition, September. www.ifac.org
 Johnson, TH and Kaplan, RS (1987) Relevance lost: the rise and the fall of
management accounting, Harvard Business School Press, Boston, Massachusetts
 Kaplan, RS and Norton, DP, (1992) Measures that drive performance, Harvard
Business Review, February
 Kaplan, RS and Norton, DP, (1996) Using the balanced scorecard as a strategic
management system, Harvard Business Review, February
Useful websites:
Further information on the balanced scorecard is available from many websites, including:
www.cimaglobal.com
www.cimaglobal.com/sem
www.2GC.co.uk
www.insead.edu/discover_INSEAD/
www.som.cranfield.ac.uk/som/cbp/pma/
95

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A PROJECT REPORT ON

“PUTTING HR ON BALANCED SCOREDCARD”

GAIL (INDIA) LIMITED

GAIL JUBILEE TOWER B-35&36,SECTOR-1

CENTRE FOR MANAGEMENT EDUCATION

MANAGEMENT HOUSE, 14 INSTITUTIONAL AREA

LODHI ROAD, NEW DELHI – 110003

MR. RAJENDER CHAUDHARY

FOR THE PARTIAL FULFILLEMENT OF

Post graduation certification in management

In spite of the theoretical knowledge gained through classroom study, a person is

Human resource is an important part of any business and managing them is an

To the emphasis on practical aspect of management education the faculty of

I express my cordial thanks and acknowledgement to all front hand employees

2. How can the balanced scorecard be applied in HR? 14-15

3. Why build a balanced scorecard 15

4. Effective performance management with balanced scorecard 16-17

Development of scorecard thinking

1.1 From performance measurement to strategic management:…………. 16-17

1.2 strategy mapping………….. 17

1.3 effective scorecard…………. 17-18

5. The HR architecture as a strategic assests? 18

1.1 The HR function……………….. 19

1.2 The HR system………………….. 19-21

1.3 Employees behavior………….. 21-22

6. Theory behind the balanced scorecard 22-27

1.1 Background of the concept of balanced scorecard…….. 22-27

1.2 Defining critical success factors and measures…………… 27-36

1.3 The four perspective : cause and effect relationship………. 36-37

1.4 The balanced scorecard model………………………………………….. 37-39

1.5 Balanced scorecard as a measurement tool………………………. 39-40

7. Introduction to human resource management 40

1.1 Definition & Meaning:…………………………………….. 40

1.2 Objectives of HRM or characteristics or nature……. 40

1.3 Evaluation of HRM………………………………………………. 41-42

1.4 Scope/function of HRM……………………………………….. 42-44

2.1 company overview of Mahindra logistic LTD. 32

2.2mahindra logistics reportedly prepares for IPO before 2018 32

2.3 Mahindra group plans Mahindra logistics IPO 32

2.4 Mahindra logistics seeks Acquisitions 32

2.5 key executives for Mahindra logistics LTD. 33

2.6 Mahindra own words 34

2.6.1 Its vision, mission and values 34

2.6.3 About the brand 36

2.6.5 Industries 38-39

2.6.6 Sources 40-41

2.6.7 Technologies 42-49

2.6.8 Mahindra’s competitors 50

2.6.9 Supply chain management 51

2.6.10 Mahindra logistic LTD. And job satisfaction 52-55

3.1 case study 57-62

4. Research methodology & data interpretation 63-83

4.1 primary methodologies 64-78

4.2 secondary methodologies 79

4.2.1 Sources of secondary data 79

4.2.2 Example to understand job satisfactions text thoughts 79-80

4.2.3 Mahindra logistic LTD. Policies and welfare programmers 80-83

5. LIMITATIONS OF THE STUDY 84

Name - RAJENDER CHAUDHARY

Contact no. - 9873552547

Designation - MANAGER (HR)

Org. Address - GAIL (INDIA) LTD.

Education - MA, MBA, LLB, PGDPM, PGDLL