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MTE: HUMAN RESOURCE MANAGEMENT

TOPIC :COMPARATIVE ANALYSIS OF HUL AND ITC

DELHI SCHOOL OF MANAGEMENT

(DELHI TECHNOLOGICAL UNIVERSITY)

Submitted By :

Aman Kumar (2k21/dmba/23)

Kartik Agrawal (2k21/dmba/62)

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EXECUTIVE SUMMARY

HR practices involve the strategic operations of HR. They form the foundation and
guidance for managing the company's employees and should coordinate with the
executive business plan. Some examples of HR practices include: Setting the mission
and goals of the HR department.

HR policies are an essential framework that every company needs to ensure smooth
functioning. These policies are the guiding factor that tells the company and the
employees how to work and conduct themselves to ensure a safe and secure working
environment for all.

So with this reference the project titled comparatative analysis of HUL and ITC has
been conducted, based on the primary research in HUL’s sales and production
Division has been prepared to get a better insight into the management practices
adopted by HUL with reference to HR Policies prepared by the HR department in
organization. It emphasizes on the importance of a clear cut organization structure
and culture to avoid any confusion in order to achieve maximum result with
minimum resources.

The project is aimed to cover maximum knowledge of the HR practices & Policies
followed by the HUL and ITC, and how the performance is evaluated of employees,
what primary factors are considered, how data is maintained and finally the
evaluation done. Here the HR practices of the company have been explained to
understand how the company follows these practices and the performance appraisal
process adopted. The practical knowledge has been gained mainly by observing all
the activities taking place in the H.R. department. This is a brief study done to have
understanding of the subject H.R., how it is practically implemented, why it is
necessary, its implications & the benefits.

With reference to the HR Practices brief knowledge has been gained how the
Recruitment cycle functions, Selection done, Training Calendar prepared, what does
compensation & cost to company means and the steps of performance appraisal.

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INTRODUCTION

FMCG SECTOR

Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector with

household and personal care accounting for 50% of FMCG sales in India. Growing
awareness, easier access and changing lifestyles have been the key growth drivers for
the sector. The urban segment (accounts for a revenue share of around 55%) is the
largest contributor to the overall revenue generated by the FMCG sector in India.
However, in the last few years, the FMCG market has grown at a faster pace in rural
India compared to urban India. Semi-urban and rural segments are growing at a rapid
pace and FMCG products account for 50% of the total rural spending.

Top 10 FMCG Companies in India

• Hindustan Unilever Ltd. ...
• ITC Ltd. ...
• Nestle India Ltd. ...
• Britannia Industries Ltd. ...
• Godrej Consumer Products Ltd. ...
• Patanjali Ayurved Limited. ...
• Dabur India Ltd. ...
• Marico Ltd.
• Varun Beverages Ltd
• GlaxoSmithKline Consumer Healthcare Ltd

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INTRODUCTION TO HR PRACTICES

Hr Practice

The success of any business depends as much on appropriate, effective, well-

communicated, HR and business practices as it depends on meeting the requirements
of mandated laws and regulations. In fact, good planning and the development of
effective practices make regulatory compliance much easier.

HR practices helps in increasing the productivity and quality, and to gain the
competitive advantage of a workforce strategically aligned with the organization’s
goals and objectives.

Objective of hr practice

The main objective of HR Practices is to differentiate the organization from its

competitors by effective and efficient HR Practices. By following this, the
organization does its whole work process. As the transparent HR practices can reduce
attrition, because Transparent HR practices ensure continuous business growth in
every organization. It gives the suitable working environment to the employees.

The success of company motivates the employees of organization to continue

relationship with it. As all the employees Perks chart has been mentioned according
to their designation in the HR practices, it helps the employees to know what their
perks charts are. So it creates a transparency.

The HR Practices are as follow:

• Recruitment and Selection

• Performance Management
• Training and Developement
• Compensation
• Employee Engagemen

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Recruitment and Selection

Recruitment:

It is a process to discover the sources of manpower to meet the requirements of the

staffing schedules and to employ the effective measures for attracting that manpower
in adequate numbers to facilitate effective selection of an efficient workforce. Edwin
B. Flippo has defined it as "The process of searching for prospective employees and
stimulating them to apply for jobs in the organization."

Selection:

It is one area where the interference of external factors is minimal. Hence the HR
department can use its discretion in framing its selection policy and using various
selection tools for the best result.

Performance Management

Performance management is a corporate management tool that helps managers

monitor and evaluate employees' work. Performance management's goal is to
create an environment where people can perform to the best of their abilities and
produce the highest-quality work most efficiently and effectively.

Training and Developement

Training is the process of improving and polishing the required Skills to an employee
in order to make him/her skilled and perfectionist in the job which he / she does.
Training is purely job focused but development is psychology and soft skills oriented.
Both training and development are continuous and core tasks of organisation, but
employee training will be for the particular job to develop skills in concern particular
job for a particular period and will be given periodically whenever updating of skills
needed for performing particular job and moreover training is meant for the purpose
of development of technicality among employees.

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Compensation

Compensation includes payments like bonuses, profit sharing, overtime pay,

recognition rewards and sales commission, etc. Compensation can also include
non-monetary perks like a company-paid car, company-paid housing and stock
opportunities.

Employee Engagement

Employee engagement is a human resources (HR) concept that describes the level of
enthusiasm and dedication a worker feels toward their job. Engaged employees care
about their work and about the performance of the company, and feel that their efforts
make a difference. An engaged employee is in it for more than a paycheck and may
consider their well-being linked to their performance, and thus instrumental to their
company's success.

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INTRODUCTION TO HR POLICIES

HR policies are an essential framework that every company needs to ensure smooth
functioning. These policies are the guiding factor that tells the company and the
employees how to work and conduct themselves to ensure a safe and secure working
environment for all.

What are HR policies?

HR strategies are also described as the set of concepts and norms of behaviour that
regulate an organization’s interaction with its workers. A policy proposal of this type
sets instructions for a broad range of employment connections inside the business.
The aim and relevance of HR rules are self-evident. Every firm needs policies in
order to promote regularity in behaviour and equality in employee relations.

Why Is It Important to Have Defined HR Policies in Place?

HR Department Policies and Practices are critical in SMEs because they give an
outline, management, uniformity, justice, and rationality. They also guarantee
that employment laws are followed and that workers are aware of their obligations
and the Business’s goals.

HR policies are vary organisation to organisation, following are some common hr

policies which are used by organisations:-

1. Employment contract

As per India’s employment laws, it is essential to file proper documentation of the

employees to ensure appropriate navigation through the complex and diverse
employment framework.

Therefore, having accurate and updated documents that prove the employee’s
compliance to the company will help in the long term and save them from any legal
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hassles later. Therefore, you need to follow the labour and wage laws while
processing documentation.

2. Employee wages

Employee payroll is one of the significant aspects of employee management.

Various acts passed by the government cover the employee wages. The most
prominent among being The Minimum Wage Act, 1948. This act sets a particular
wage as the minimum wage for skilled as well as unskilled workers. The act
mandates that the employees earn the ‘Basic’ salary to meet their living expenses.

3. Code of Conduct

The code of conduct is among the types of HR policies containing the company’s
rules that employees need to adhere to. The policy includes dress code, equal rights to
all, electronic usage policy, conflict of interest, media policy, proper work
environment etc. It also contains the rules and penalties if an employee breaches or
violates the code of conduct.

4. Leave policy

HR policies in India 2020 should also provide provision for unpaid leaves along with
detailed rules on the salary cut on late arrivals and half days. According to The
Factories Act, 1948, employees are entitled to get paid holidays every week as well
as get paid for any extra work they did beyond their work hours.

5. Employee provident fund

Every employer is liable to set up an employees provident fund account for each of
its employees. The Employees Provident Fund Act, 1947 provides income security to
the employees after their retirement.
It is important to note that companies exceeding 10 employees must provide
provident fund benefits to their employees.
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7. Paternity and maternity leave policy

Every company with more than 10 employees is required by law to provide maternity
leave benefits to women employees as per The Maternity Benefits (Amendment) Act,
2017. Any woman who has worked with the company for 80 days is entitled to
receive the benefits.
According to the act, a pregnant working woman is eligible to get a minimum of 26
weeks of paid leave for the first 2 children and a subsequent 12 weeks of unpaid
leave.
As of now, there is no law on paternity bills for private company employees.

8. Sexual harassment workplace policy

A company is required to take or implement decisive rules, human resource policies

and regulations to create a safe work ecosystem for women at the workplace. This is
not just required by law, but it should be a moral necessity for the company.
According to The Sexual Harassment Act, 2013, the company must implement proper
steps to protect women employees and interns as well as any woman who visits the
company.

9. Adaptive work culture policy

The adaptive work culture policy should contain proper rules and structures to
manage employees working remotely or working from home. This will create a
framework or guidelines for employees to follow when working from different
locations.

10. Employment Termination policy

Every employer has to face it. Some of your employees may plan to move ahead at
some point in their careers. You may also feel that an employee no more fits into your
larger scheme of things. These moments are emotional for the employee as well as
the employer.
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HINDUSTAN UNILEVER LTD

With over 85 years of heritage in India, Hindustan Unilever Limited (HUL) is India’s
largest fast-moving consumer goods company. On any given day, nine out of ten
Indian households use our products, giving us a unique opportunity to build a brighter
future. We are known for our great brands, the positive social impact we create and
our belief in doing business the right way.
HUL works to create a better future every day and helps people feel good, look good
and get more out of life with brands and services that are good for them and good for
others.

Brands around the world

With 50+ brands spanning categories such as fabric solutions, home and hygiene, life
essentials, skin cleansing, skincare, hair care, colour cosmetics, oral care, deodorants,
tea, coffee, ice cream & frozen desserts, foods and health food drinks, the Company
is a part of the everyday life of millions of consumers across India. Its portfolio
includes leading household brands such as Lux, Lifebuoy, Surf excel, Rin, Wheel,
Glow & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent,
Closeup, Axe, Simple, Love Beauty Planet, TRESemmé, Brooke Bond, Bru, Knorr,
Kissan, Kwality Wall’s, Horlicks and Pureit.

The Company has about 21,000 employees and has sales of INR 45,311 crores
(financial year 2020-21). HUL is a subsidiary of Unilever, one of the world’s leading
suppliers of Food, Home Care, Personal Care and Refreshment products with sales in
over 190 countries.

Forbes rated HUL as the most innovative company in India and #8 globally. Aon
Hewitt recognises HUL as one of the best companies to work for and it continues to
be the ‘Employer of Choice’ in the FMCG industry for past 12 years.

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Home & personal care: - Under this it has brands that cater to every income
segment of population. In this segment it has brands like Lakme, Axe, Pepsodent,
Surf Excel, Wheel, Lux, Dove, Fair & Lovely & many more.

Foods & Beverages:-Under this segment it has brand like Kissan, Knnor Soups,
Annapurna, Kwality Walls, Brooke Bond and Lipton.

It has also launch water purifier with the name Pureit.

The FMCG market is set to treble from $11.6 billion in 2003 to $33.4 billion in 2015.
Penetration level as well as per capita consumption in most product categories like
jams, toothpaste, skin care, hair wash, etc in India is low indicating the untapped
market potential. Companies present in FMCG segment like HUL, Dabur, ITC,
Godrej & many more have potential to acquire market share.

HR practices of hindustan unilever

Effective and Efficient HR practices are very much important for every organization.
So, HUL has also its HR Practices, which helps it a lot to achieve the targets.

Human Resource Management initiatives in any Organization endeavor to change,

redefine, revisit, renew, reinvent, revitalize & restructure the Organization
architecture. This is effectively done with the help of alignment & integration of HR
policies & strategies with business goal & objectives.

The Recruitment and selection process of HUL:-

The recruitment process of HUL Ltd starts from the requirement of different
departments as per to the org chart. Then they tell to the HR Department. HR
Department takes the candidates from Data bank of company, Poornata etc, then does
the short-listing, then does the scheduling for the interview. After this the selection
and negotiation process occurs. Then offer letter is been given to the selected
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candidate. The employee then joins in the organization. Then the company arranges
the Induction Program for the employee. After this the recruitment process ends with
this.

The recruitment and selection process of HUL includes following steps-

• Preleminary Interview

• Employement Interview

• Refrence and Background Analysis

• Job offer

• Employement Contract

Performance management of HUL

Mainly the performance management of HUL is done by online system includes the
following basic processes
1. Annual goal setting
2. Mid-year review
3. Annual performance review

Training & development of HUL

The need for Training and Development is determined by the employee’s

performance deficiency, computed as follows. Training & Development Need =
Standard Performance – Actual Performance.
Hindustan Unilever provided both vertical and lateral growth prospects for its
employees in all the business units present in India. India was one of few countries
where all the different business divisions – Research, Development, Testing,
Consulting, Sales & Marketing, and Support – had a significant presence. Employees
could move between the business units according to their areas of interest. Moreover,
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employees were provided with exposure to different business units by way of

mentoring from senior employees of Unilever.

Compensation Practices of HUL

Hindustan Unilever offers compensation packages on par or higher than the industry
standards based on the technical skills and experience of the candidates. Employee
benefits were standardized across employees.

The benefit schemes were re-evaluated twice a year. The benefit programs included:

• Medical benefits that were aimed keeping the employees healthy and motivated,
so as to reach expected productivity levels.

• Tuition assistance programs which included financial assistance to meet tuition

expenses for all employees. This gave them the opportunity to continue their
formal education while working

• A range of professional counseling and support services for employees and

eligible family members

• Facilitation for employees to relocate if transferred to help them settle easily in the
new location

• Assistance programs in case of emergency for employees and their eligible

dependents travelling on company work to locations worldwide.

• Company stock offers to the employees to enable them to share the benefits of the
company’s performance

Employee Engagement in HUL

There are several policies of HUL which helps employees to maintain the professional and
their personal life go hand in hand which engages them to the organisation

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Career Break facility: Any manager of HUL is allowed to avail this policy which
will help them to manage their work life balance. This kind of break can be taken for
a period up-to 5 years in total for any reason for the employee’s concern such as for
higher study, adoption, sabbatical, maternity, paternity or pursuing any personal
dreams.

Work place Facilities: The head office at Mumbai is furnished with day care facilities,
bank, shopping center, café, gymnasium, florist etc. Even provision for drop facility with
escort/ guards for lady employees working late in the evening exist.

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HR Policies of HUL

Education assistance policy

Effective 1 st August 2012, WL 1A-C employees are eligible for Education

Assistance based on the guidelines mentioned below:
❖ The assistance is open to applications for further studies postal/part time courses,
provided these are relevant to both the current job and the future job requirement.
❖ FRC Chairperson and HRLT to the FRC will approve the request based on
development need for key talent, applicability of the course in current/future
potential roles and the budget available with the unit/department.
❖ Effective 1 st August 2012, the company will reimburse tuition and examination
Fee at actuals, subject to a maximum of INR 50,000 per annum. The amount will be
reimbursed only on confirmation of exam clearance in the first attempt along with
payment receipts. There will be no advance payment.
❖ The assistance so provided will be borne by the Unit/Department under Unit
overheads.
❖ The course will be undertaken on the employee’s own free time and will not in any
way impact or affect his efficiency or output under terms and conditions of his
regular employment.
❖ A study leave of maximum 5 working days per semester can be granted in one
spell, subject to the Line Manager’s approval.

Policy on prevention of sexual harassment at workplace (POSH) Policy

Hindustan Unilever Limited [“HUL”] is committed to ensuring that all persons

engaged with HUL work in an environment that is inclusive and provides an
opportunity to bring their best selves at workplace. HUL is committed to provide a
work environment that ensures every person at the workplace is treated with dignity,
respect and afforded equal treatment. HUL directs its actions to ensure that everyone
who visits our workplace, experiences an environment that not only promotes
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diversity and equality but also mutual trust, equal opportunity and respect for human
rights. HUL does not tolerate any form of discrimination, victimization, or
harassment including Sexual Harassment and it is committed to take all necessary
steps to ensure that nobody is subjected to any kind of harassment. This Policy on
Prevention of Sexual Harassment (POSH) [“Policy”] is framed in accordance with
the provisions of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 [“Act’] and the Rules framed thereunder which
is aimed at providing every woman at the workplace a safe, secure and dignified
work environment. This POSH Policy is in addition to the ‘Respect, Dignity & Fair
Treatment’ Policy enshrined under the “Code of Business Principles” [“COBP”/
“Code”] of HUL which prohibits our employees to engage in any direct/indirect
behaviour that is offensive, intimidating, malicious or insulting. This includes any
form of harassment or bullying, whether individual or collective

HUL Gender Transition Policy

❖ The company will bear the cost of non-cosmetic gender reassignment surgeries and
hormone replacement, as covered under the medical policy of the company. At this
stage, cosmetic surgeries are not covered under this policy.
❖ The transitioning employee is eligible for post-surgery recovery leave, under the
company’s leave policy, up to a limit advised by a company authorized health
practitioner.
❖ In special cases, flexible/agile working arrangements and relocation support (basis
availability of suitable opportunities in a different location), can be explored to aid a
smoother transition back to work.

Career Break Policy

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This policy has been developed to enable employees to take an extended period of
unpaid leave from work to balance their career with other commitments,
responsibilities, and interests. WL1+ employees with greater than or equal to 2 years
of employment with the company are eligiblefor availing career break policy.for any
of the reasons stated below:
❖Childcare Responsibilities:
❖Adoption Leave:
❖Eldercare Responsibilities / Personal Family Commitments:
❖Joining Spouse/Partner at the Place of their Posting
❖Professional Development / Higher Education
❖To Pursue a Personal Reason Like Pursuing a Hobby, Travel, etc.

Parental leave Policy

Raisinga family is a cherished goalformany.AtHindustanUnilever,weunderstandthe

need of our employees, who are planning to or have recently become parents,to take
paid leave to experience this beautiful phase and nurture a bond with theiryoung
child. The policy lays down the minimum period of leave employees can avail on
account of maternity, paternity, adoption, andsurrogacy

Maternityleave –WL1+ Women employees are entitled to 26 weeks of Maternity

Leave, with full pay andbenefits, of which up to eight weeks can be taken prior to
delivery, depending uponindividual need. This leave is available twice in a career for
2 children. MaternityLeave for 3rd child will be 12 weeks. In case of miscarriage, a
woman will be entitled to paid leave for six weeks immediately following the day of
her miscarriage and will have the option to request for additional special leave if
needed with the approval of line manager.

Paternity leave – WL1+ Paternity leave of 3 weeks with full pay and benefits is
provided to all male employees in the company. This leave can be availed as one
leave of 3 weeks or inweeklong increments (3 instalments) within twelve months of
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the employee becominga father.This leavecannot be carried forward or cashed out.

This leave isavailable twice in a career. In case of a miscarriage, the employee is
entitled to request for special leave with the approval of line manager.

Travel Policy for new Parents

The objective of the policy is to support new parents at HUL when critical business
travel has to be undertaken. While the policy enables this travel, the intention is not to
mandate it. In fact, as a rst option, alternate formats such as a virtual meeting should
be explored and ruled out before opting for this policy.

Policy:-

❖ The company will bear the cost of economy travel, for up to 2 children, each not
older than 2 years of age, and the caregiver, as necessary, during the period of
business travel.
❖ Lodging/boarding of the child/children and the caregiver in the same room as the
employee, will be covered by the company.
❖ Any other expenses for the children/caregiver such as meals, separate room (if
required), facilities such as use of hotel creche etc. are to be borne by the employee
directly

Disability Accomodation Policy

Unilever is committed to collaborate with eligible employees in exploring reasonable

work accommodations that enable persons with disabilities to perform their jobs
successfully and set them up to thrive and succeed. The policy is designed to ensure
employees feel safe to share their disability and on doing so, HUL will make
reasonable accommodations and adjustments needed to support them. These
accommodations can include physical adjustments, assistive technology or cultural
training that employees may need to perform at their best.
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What is Disability:
As per statutory guidelines, under the Rights of Persons with Disabilities Act – 2016,
a person with Disability is someone with long term physical, mental, intellectual or
sensory impairment which, in interaction with barriers, hinders his/her/their full and
effective participation in society, equally with others.
How can disability be declared?
❖ Any individual can declare their disability by accessing Workday and updating the
information under the Personal Information tab (refer to instructions in the attached
QRG).
❖Alternately, any individual can disclose their disability, verbally, to a selected
employee they feel comfortable within order to seek support at the workplace.
These could be their Line Manager, Human Resources, Medical and Occupational
Health, People Experience Lead, or anyone else they choose

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COMPARATIVE ANALYSIS OF HUL AND ITC