STR Project HR

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Str file 1234 - This is an STR file of BBA(G) course for 5th
semester which is the main project
Bba (Guru Gobind Singh Indraprastha University)
Studocu is not sponsored or endorsed by any college or university

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SUMMER TRAINING PROJECT REPORT
ON
HR PRCTICES USING GreyHRM & Orange HRM – IBM
Submitted for the Partial fulfillment of the degree of
Bachelor of Business Administration
(2017-2020)
Under The Guidance of:
Dr. Shweta Gupta
Assistant Professor, FIMT
Submitted By:
SHALU RAO
03551401717
BBA, VTH SEMESTER
Fairfield Institute of Management and Technology
Affiliated to Guru Gobind Singh Indraprastha University, Delhi
Kapashera, New Delhi- 110037

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DECLARATION
I hereby declare that this Summer Training Report titled “HR PRACTICES IN IBM
“submitted by me to FAIRFIELD INSTITUTE OF MANAGEMENT AND
TECHNOLOGY, KAPASHERA is a bonafide work undertaken during the 5th Semester by me
and has not been submitted to any other University or Institution for the award of any degree
diploma/ certificate or published any time before.
Date:
Name: Shalu Rao
Enroll. No: 03551401717
Course: BBA (G)
Semester: 5th Semester
Signature of the Student

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CERTIFICATE
This is to certify that the practical file titled “HR PRACTICES IN IBM” submitted by SHALU
RAO to Fairfield Institute of Management and Technology, Guru Gobind Singh Indraprastha
University, Delhi in partial fulfillment of requirement for the award of the Bachelor of Business
Administration degree in an original piece of work carried out under my guidance and may be
submitted for evaluation. The assistance rendered during the study has been duly acknowledged.
No part of this work has been submitted for any other degree.

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ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is not different.
Regardless of the source, I wish to express my gratitude to those who may have contributed to
this work, even though anonymously.
First I would like to express my deepest sense of gratitude to FAIRFIELD INSTITUTE OF

MANAGEMENT AND TECHNOLOGY for providing me an opportunity to conduct this work.
I would like to pray my sincere thanks to my guide, Dr. Shweta Gupta my faculty, under whose
guidance I was able to complete my project successfully. I have been fortunate enough to get all
the support, encouragement and guidance from her needed to explore, think new and initiate.
My final thanks go out to my parents, family members, teachers, friends and my team in the
company where I work and my superiors who encouraged me countless times to preserve
through this entire process.

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INDEX
Company Profile
Student Declaration (ii)
Certificate (iii)
Acknowledgement (iii)
Executive Summary (vi)
Chapter 1 Introduction 09-37
(I). Introduction of Topic 09-24

(II). Company Profile 24-37
Literature Review
Chapter 2 39-42
Chapter 3 Research Methodology 44
Chapter 4 Data Analysis and Interpretation 46-50
Chapter 5 Findings and Conclusion 52-53
Bibliography 54

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EXECUTIVE SUMMARY
The Human Resources are the most important assets of an organization. The success or failure of
an organization is largely dependent on the caliber of the people working therein. Without
positive and creative contributions from people, or organizations cannot progress and prosper. In
order to achieve the goals or the activities of an organization, therefore, they need to recruit
people with requisite skills, qualifications and experience. While doing so, they have to keep the
present as well as the future requirements of the organization in mind.
Recruitment is defined as, “a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient workforce”.
In order to attract people for the jobs, the organization must communicate the position in such a
way that job seekers respond. To be cost effective, the recruitment process should attract
qualified applicants and provide enough information for unqualified persons to self-select
themselves out.
The term”HR recruiter” may sound redundant, as both human resources managers and recruiters
both find job candidates and get them hired, this job is very specific.
Recruiters will work from resumes or by actively soliciting individuals qualified for positions. A
recruiter’s job includes reviewing candidate’s job experiences, job experiences, negotiating
salaries, and placing candidates in agreeable employment positions. Recruiters typically receive
a fee from the hiring employers.
INTERNATIONAL BUSINESS MACHINE CORPORATON (IBM) is an American

multinational information technology company headquartered in Armonk, New York, with
operations in over 170 countries. The company began in 1911, founded in Endicott, New York,
as the Computing- Tabulating- Recording Company (CTR) and was renamed “International
Business Machines” in 1924. IBM is incorporated in New York.
Human resources are the most important resource of every organization to gain a suitable
competitive advantage over competitors. To manage these human resource these are several

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practices that are used globally by different organizations to create a competent workforce. These
HR Practices are a set of principles that is used as a potential contributor to find suitable
personnel for and improve their commitment, productivity and loyalty toward the company.
This report contains the summary of Human Resource practices followed by IBM and how its
importance to improve their manpower. The analysis is based on my journey as an Intern of
Human Resource Department.
Our bookish knowledge tells us that, in theory there are practices like HRP, Recruitment &
Selection, Compensation & Benefit, Training and Development, and Performance Management,
sums up as HR Practices. There are sets of different versions and uses of these theories. But my
experience tells me, not many organizations follow those bookish theories. They tend to modify
them, update them and even just drop them when necessary.
In my report, I modestly tried to upload all the HR activities and practices conducted and
followed by IBM, find the flaws which are drawing them back and make some recommendation
which may better their situation.

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CHAPTER 1
INTRODUCTION

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INTRODUCTION
INTRODUCTION OF HR PRACTICES:
The impact of Industrial liberalization in the domestic economy since 1991 has been very strong.
The Indian Pharmaceutical Industry is being nurtured for an exponential growth, since this
period. The Indian Pharmaceutical industry, till the 1990’s was far from external competition.
After the process patent regime in India, companies found it easier to reverse engineer products
and sell them at a low cost. However, the 1990s witnessed multiple crises hitting the industry.
The new industrial policy leads the industry to face increased competition from multinational
corporations (MNCs). Further the Indian Pharmaceutical industries’ were compelled to grow by
product innovation and not reverse engineering, after signing of the TRIPS (Trade Related
Aspects of Intellectual Property Rights). Every company wants to be world class and serve as a
benchmark for this transition efforts where required in various directions.
“The Indian Pharmaceutical industry is a success story providing employment for millions and
ensuring that essential drugs at affordable prices are available to the vast population of this sub-
continent.”
Richard Gerster The Indian Pharmaceutical Industry today is in the front rank of India’s science-
based industries. In the complex field of drug manufacture and technology this industry has
various capabilities. With an annual growth of about 8 to 9 percent it is a highly organized sector,
the Indian Pharmaceutical Industry is estimated to be worth $ 4.5 billion. It ranks very high in
the third world, in terms of technology, quality and range of medicines manufactured. From
simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every
type of medicine is now made indigenously. The Indian Pharmaceutical sector is quite large with
more than 20,000 registered units. It has expanded drastically in the last two and half decades.
The leading 250 Pharmaceutical companies control 70% of the market with market leader
holding nearly 7% of the market share. It is a market with severe price competition and
government price control.

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The Pharmaceutical industry in India meets around 70% of the country’s demand for bulk drugs,
capsules, orals and injectibles drug intermediates, Pharmaceutical formulations, chemicals and
tablets etc. There are about 250 large units and about 8000 Small Scale Units, which form the
core of the Pharmaceutical industry in India (including 5 Central Public Sector Units). These
units produce the complete range of Pharmaceutical formulations, i.e., medicines ready for
consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and
used for production of Pharmaceutical formulations.
For the growth of this sector industrial licensing for most of the drugs and Pharmaceutical
products has been done away with, under the de-licensing policy of the Government.
Manufacturers are now free to produce any drug duly approved by the Drug Control Authority.
The Pharmaceutical Industry, with its rich scientific talents and research capabilities, supported
by Intellectual Property Protection regime is well set to capture the international market. The
Pharmaceutical industry in India is not only technologically strong and totally self-reliant but has
other strengths such as low costs of production, low R&D costs, innovative scientific manpower,
strength of national laboratories and an increasing balance of trade.
ADVANTAGE INDIA
Able workforce: India has a pool of personnel with high managerial, technical competence and
skilled workforce. It has both uneducated and educated work force and English is commonly
used. Here all types of services are also easily available.
Cost-effective chemical synthesis: Its track record of development, particularly in the area of
improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides
a wide variety of bulk drugs which fulfills the domestic as well as the export requirements.
Strong Legal Framework: India has a 62 year old democracy and hence has a strong legal
framework and markets. There is already an established international industry and business
community.
Information & Technology: It has a good network of world-class educational institutions and
established strengths in Information Technology. The IT industry in India is one of the fastest
upcoming industries in the country.

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Globalization: The country is under the new economic regime where it is committed to a free
market economy and globalization. Now India is having good trade relations with almost every
country in the world. Therefore it is fast moving towards import substitution and export
promotion.
Consolidation: For the first time in many years, the international Pharmaceutical industry is
finding great opportunities in India. The process of consolidation, which has become a
generalized phenomenon in the world Pharmaceutical industry, has started taking place in India.
The Indian Pharmaceutical industry as a whole has benefited significantly from the reforms of
the 1990s. The Indian Pharmaceutical industry has benefited immensely from the economic
reforms carried out since 1990s. Due to this domestic firms are investing more in R&D and in
turn this has lead to technological changes, and productivity innovations. Domestic firms have
responded to the increased competition by moving into higher margin products like formulation
drugs, and increasing investments in R&D. Though MNCs have experienced higher productivity
growth compared to the domestic firms, but we can say that the Indian Pharmaceutical industry
is better-off post the liberalization.
Large, Pharmaceutical companies do seem to have a distinct edge over the smaller ones, but the
latter are trying their best to catch up with the former. Now it is a high-pressured business
environment, with demanding changes in the healthcare industry with a lot of hard work that
needs to be executed to perfection at lightning speeds. Getting the best out of people continues to
remain an evergreen challenge and only those who adapt, can survive and can flourish.
Attraction, engagement and retention of people continue to be the key challenges for the
Pharmaceutical industry or we can say that for every industries HR department.
OBJECTIVE OF STUDY:
The purpose of Human Resource Management lies in successful utilization of people to attain
specific as well as organizational goals. This includes both the personnel (i.e., hiring employees
and upholding employee information); and payroll function (retaining the employee information
associated with employee payment). Human Resource Management typically means to engage,
improve and preserve sufficiently capable employees, to implement the activities essential to
achieve organizational aims.

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4 Main Objectives of HRM
1. Defining Organizational Structure And Driving Productivity
Human Resource Management is a method to realize competence and drive efficiency in

organizational work. Therefore, its chief determination remains in accomplishing organizational
goals. It has to benefit organizations by outlining clearly defined aims and achieving them.
Apart from meeting the organizational goals, Human Resource Management also describes the
key problems to be taken care of and governs rules and urgencies. It engenders organizational
efficacy, by hiring efficient people, training them and effectively employing the workers.
It should also develop the service that organization provides to the society through structuring
employee confidence in a positive direction, which is at the front of effectual individual and
group performance.
2. Building Coordination between Organizational Departments
Human Resource Management is responsible for coordination and harmonious functionality

within, and between different departments. The resources are organized to achieve business
objectives. Also, it is to be made certain that there is functional utilization and all-out growth of
human resources.
Human Resource Management should aim at making effective use of the workforce through
proper direction of the organizational sectors. This includes refining the conditions for successful
outcomes, by making appropriate decisions about human resource planning, recruitment,
evaluation, rewards, training and improvement and staff associations that are reliable and sustain
the business strategy.
3. Offering Employee Satisfaction
It has become harder than ever for companies to hire and sustain capable people because of the
rising global competition. Add to it, the lack of sufficiently skilled personnel. As such, it
becomes an undeniable priority for Human Resource Management to hire and train the right
talent.

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It should be ensured that there is an environment of respect among people in the organization,
and individual needs are catered to. The HR strategies, policies and ideas for individual
improvement must be cohesive with the organization’s strategic goals.
It should gratify individual objectives of employees so that personal and organizational

objectives can be aligned, conducive to reaching maximum productivity and establishing a
certain competitive edge.
4. Keeping Up With the Societal And Ethical Models
It must be the responsibility of Human Resource management to ensure that legal, ethical, and
social environmental issues are suitably dealt with. It must make sure that the human resources
are officially and compliantly coped with and their requirements are recognized and fulfilled. It
should also consider the societal ethics and undertake social responsibility.
It must also try to enhance organization’s competitive advantage through social strategies, by
pitching in ethically to the necessities and challenges evolving in the society. The societal
objectives also involve legal issues such as equal opportunity and equal pay, which should be
given due concern.
HRM is concerned with the human beings in an organization. “The management of man” is a
very important and challenging job because of the dynamic nature of the people. No two people
are similar in mental abilities, tacticians, sentiments, and behaviors; they differ widely also as a
group and are subject to many varied influences. People are responsive, they feel, think and act
therefore they cannot be operated like a machine or shifted and altered like template in a room
layout. They therefore need a tactful handing by management personnel.”m HRM is the process
of managing people of an organization with a human approach. Human resources approach to
manpower enables the manager to view the people as an important resource. It is the approach
through which organization can utilize the manpower not only for the benefits of the
organization but for the growth, development and self satisfaction of the concerned people. Thus,
HRM is a system that focuses on human resources development on one hand and effective
management of people on the other hand so that people will enjoy human dignity in their
employment.

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HRM is involved in providing human dignity to the employees taking into account their capacity,
potentially, talents, achievement, motivation, skill, commitment, great abilities, and so on. So,
that their personalities are recognized as valuable human beings. If an organization can trust,
depend and draw from their bank account on the strength of their capital assets, they can trust,
depend and draw more on their committed, talented, dedicated and capable people. This is what
the HRM is involved in every business, managerial activity or introduction.
The principal component of an organization is its human resource or ‘people at work’. According
to Leon C. Megginson from the national point of view Human Resources as, “the knowledge,
skills, creative abilities, talents and aptitudes obtained in the population; whereas from the. View
point of the individual enterprise, they represent the total of inherent abilities, acquired
knowledge and skills as exemplified in the talents and aptitudes of its employees.”
Human resource has a paramount importance in the success of any organization because most of
the problems in organizational setting are human and social rather than physical, technical or
economical failure. In the words of Oliver Shelden, “No industry can be rendered efficient so
long Human Resources Management is concerned with the “people” dimension in management.
Since every organization is made up of people acquiring their services, developing their skills,
motivating them to high level of performance and ensuring that they continue to maintain their
commitment to the organization are essential to achieve organizational objectives. This is true
regardless of the type of organization, government, business, education, health, recreation or
social action. Getting and keeping good people is critical to the success of every organization,
whether profit or non-profit, public or privateas the basic fact remains unrecognized that it is
principally human.”
Definitions of HRM
There are two different definitions. The first definition of HRM is that “It is the process of
managing people in organizations in a structured and thorough manner.”(4) 5This covers the
fields of staffing (hiring people), retention of people, pay and perks setting and management,
performance management, change management and taking care of exits from the company to

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round off the activities. This is the traditional definition of HRM which leads some experts to
define it as a modem version of the Personnel Management function that was used earlier.
The second definition of HRM encompasses “The management of people in organizations from a
macro perspective, i.e. managing people in the form of a collective relationship between
management and employees.” This approach focuses on the objectives and outcomes of the
HRM functions. It means that the HR function in contemporary organizations is concerned with
the notions of people enabling, people development and a focus on making the “employment
relationship” fulfilling for both the management and employees.
In simple words, Human resource management is management function that helps manager to
recruit, select, train and develop organization members. Or HRM is a process of making the
efficient and effective use of human resources so that the set goals are achieved. In general terms,
Human Resource Management is “concerned with the people dimension in management. Since
every organization is made up of people, acquiring their services, developing their skills,
motivating them to high levels of performance and ensuring that they continue to maintain their
commitment to the organization are essential for achieving organizational objectives. This is true
regardless ofthe type of organization government business, Education, Health, regression or
social action.”
In the words of Dunn and Stephens, “The HRM is the process of attracting, holding and
motivating all manager line and staff.”
The National Institute of Personnel Management (NIPM) of India has defined human resource as
“that part of management which is concerned with people at work and with their relationship
within an enterprise. Its aim is to bring together and develop into an effective organization of the
men and women who make up an enterprise and having regard for the well-being of the
individuals and of working groups, to enable them to make their best contribution to its success.”
The history of development of HR management in India is comparatively of recent origin. But

Kautilya had dealt with some of the important aspects of human resources management in his
“Arthasastra,” written in 400 B.C. Government in those days adapted the techniques of HRM as
suggested by Kautilya. In its modem sense, it has developed only since independence. Though

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the importance of labour officers was recognised as early as 1929, the appointment of officers to
solve labour and welfare problems gained momentum only after the enactment ofthe Factories
Act of 1948. Section 49 of the Act required the appointment of Welfare Officers in companies
employing more than 500 workers. At the beginning, Government was concerned only with
limited aspects of labour welfare. The earliest labour legislation in India dealt with certain
aspects of Indian labourers (Regulation of Recruitment, Forwarding and Employment) sent to
various British colonies in 1830.
SCOPE OF STUDY:
Human resources are undoubtedly the key resources in an organization, the easiest and the most
difficult to manage! The objectives of the HRM span right from the manpower needs assessment
to management and retention of the same. To this effect Human resource management is
responsible for effective designing and implementation of various policies, procedures and
programs. It is all about developing and managing knowledge, skills, creativity, aptitude and
talent and using them optimally.
HUMAN resource management (HRM), the management of work and people towards desired
ends, is a fundamental activity in any organization in which human beings are employed. It is not
something whose existence needs to be elaborately justified: HRM is an inevitable consequence
of starting and growing an organization. While there are a myriad of variations in the ideologies,
styles, and managerial resources engaged, HRM happens in some form or other. It is one thing to
question the relative performance of particular models of HRM in particular contexts or their
contribution to enhanced organizational performance relative to other organizational
investments, such as new production technologies, advertising campaigns, and property
acquisitions. These are important lines of analysis. It is quite another thing, however, to question
the necessity of the HRM process itself, as if organizations could somehow survive or grow
without making a reasonable attempt at organizing work and managing people (Boxall and
Steeneveld 1999). To wish HRM away is to wish away all but the very smallest of firms.
Human Resource Management is not just limited to manage and optimally exploit human
intellect. It also focuses on managing physical and emotional capital of employees. Considering
the intricacies involved, the scope of HRM is widening with every passing day. It covers but is

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not limited to HR planning, hiring (recruitment and selection), training and development, payroll
management, rewards and recognitions, Industrial relations, grievance handling, legal procedures
etc. In other words, we can say that it’s about developing and managing harmonious relationships
at workplace and striking a balance between organizational goals and individual goals.
 Human resources planning: Human Resource Planning 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.
 Job analysis design: - Another important area of Human Resource Management is job
analysis. Job analysis gives a detailed explanation about each and every job in the
company.
 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 advertisement is published,
interviews are conducted and the right employee is selected thus recruitment
and selection are yet another important area of Human Resource Management.
 Orientation and induction: - Once the employees have been selected

an induction or orientation program is conducted. This is
another important area of Human Resource Management. 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.
 Training and development: - Every employee goes under training program which helps
him to put up a 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.
 Performance appraisal: - Once the employee has put in around 1 year of

service, performance appraisal is conducted that is the Human Resource department

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checks the performance of the employee. Based on these appraisal future promotions,
incentives, increments in salary are decided.
 Compensation planning and remuneration: - There are various rules

regarding compensation and other benefits. It is the job of the Human Resource
department to look into remuneration and compensation planning.
 Motivation, welfare, health and safety: - Motivation becomes important to sustain the
number of employees in the company. It is the job of the Human Resource 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
handled by the HR department.
 Industrial relations: - Another important area of Human Resource Management is

maintaining co-ordinal relations with the union members. This will help the organization
to prevent strikes lockouts and ensure smooth working in the company.
The Human Resource Officer is responsible for providing support in the various human
resource functions, which include recruitment, staffing, training and development, performance.
Counseling.
SCOPE
(The way that the position contributes to and impacts on the organization) The Human Resource
Officer provides advice and assistance to supervisors and staff. This may include information on
training needs and opportunities, job descriptions, performance reviews and personnel policies.
The position coordinates the staff recruitment process .The Human Resource Officer provides
advice and support to supervisors and staff selection committees and ensures that they have
accurate and timely information in order to make effective decisions.
The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it
concisely. However, we may classify the same under following heads:

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 HRM in Personnel Management: This is typically direct manpower management that

involves manpower planning, hiring (recruitment and selection), training and
development, induction and orientation, transfer, promotion, compensation, layoff and
retrenchment, employee productivity. The overall objective here is to ascertain individual
growth, development and effectiveness which indirectly contribute to organizational
development.
It also includes performance appraisal, developing new skills, disbursement of wages,

incentives, allowances, traveling policies and procedures and other related courses of
actions.
 HRM in Employee Welfare: This particular aspect of HRM deals with working
conditions and amenities at workplace. This includes a wide array of responsibilities and
services such as safety services, health services, welfare funds, social security and
medical services. It also covers appointment of safety officers, making the environment
worth working, eliminating workplace hazards, support by top management, job safety,
safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical
care, sickness benefits, employment injury benefits, personal injury benefits, maternity
benefits, unemployment benefits and family benefits.
It also relates to supervision, employee counseling, establishing harmonious relationships

with employees, education and training. Employee welfare is about determining
employees’ real needs and fulfilling them with active participation of both management
and employees. In addition to this, it also takes care of canteen facilities, crèches, rest and
lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.
 HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful

interactions with labor or employee unions, addressing their grievances and settling the
disputes effectively in order to maintain peace and harmony in the organization. It is the
art and science of understanding the employment (union-management) relations, joint
consultation, disciplinary procedures, solving problems with mutual efforts,

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understanding human behavior and maintaining work relations, collective bargaining and
settlement of disputes.
The main aim is to safeguarding the interest of employees by securing the highest level of
understanding to the extent that does not leave a negative impact on organization. It is
about establishing, growing and promoting industrial democracy to safeguard the
interests of both employees and management.
The scope of HRM is extremely wide, thus, cannot be written concisely. However, for the sake of
convenience and developing understanding about the subject, we divide it in three categories
mentioned above.
The National Institute of personnel Management, Calcutta has specified the scope of HRM
as follows:
1. The Labour or Personnel Aspect:

This is concerned with manpower planning, recruitment, selection, placement, transfer,
promotion, training and development, lay-off and retrenchment, remuneration, incentives,
productivity, etc.
2. Welfare Aspect:
It deals with working conditions, and amenities such as canteen, creches, rest and lunch rooms,
housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
3. Industrial Relations Aspects:

This covers union-management relations, joint consultation, collective bargaining, grievance and
disciplinary actions, settlement of disputes, etc.
Functions:
We have already defined HRM. The definition of HRM is based on what managers do. The
functions performed by managers are common to all organizations. For the convenience of study,
the function performed by the resource management can broadly be classified into two
categories, viz.

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(1) Managerial Functions:

Planning:
Planning is a predetermined course of actions. It is a process of determining the organisational
goals and formulation of policies and programmes for achieving them. Thus planning is future
oriented concerned with clearly charting out the desired direction of business activities in future.
Forecasting is one of the important elements in the planning process. Other functions of
managers depend on planning function.
Organising:
Organising is a process by which the structure and allocation of jobs are determined. Thus
organising involves giving each subordinate a specific task establishing departments, delegating
authority to subordinates, establishing channels of authority and communication, coordinating
the work of subordinates, and so on.
Staffing:
TOs is a process by which managers select, train, promote and retire their subordinates This
involves deciding what type of people should be hired, recruiting prospective employees,
selecting employees, setting performance standard, compensating employees, evaluating
performance, counseling employees, training and developing employees.
Directing/Leading:
Directing is the process of activating group efforts to achieve the desired goals. It includes
activities like getting subordinates to get the job done, maintaining morale motivating
subordinates etc. for achieving the goals of the organisation.
Controlling:
It is the process of setting standards for performance, checking to see how actual performance
compares with these set standards, and taking corrective actions as needed.
(2) Operative Functions:

The operative, also called, service functions are those which are relevant to specific department.
These functions vary from department to department depending on the nature of the department
Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for

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right jobs at right times. These functions include procurement, development, compensation, and
maintenance functions of HRM.
A brief description of these follows:

Procurement:
It involves procuring the right kind of people in appropriate number to be placed in the
organisation. It consists of activities such as manpower planning, recruitment, selection
placement and induction or orientation of new employees.
Development:
This function involves activities meant to improve the knowledge, skills aptitudes and values of
employees so as to enable them to perform their jobs in a better manner in future. These
functions may comprise training to employees, executive training to develop managers,
organisation development to strike a better fit between organisational climate/culture and
employees.
Compensation:
Compensation function involves determination of wages and salaries matching with contribution
made by employees to organisational goals. In other words, this function ensures equitable and
fair remuneration for employees in the organisation. It consists of activities such as job
evaluation, wage and salary administration, bonus, incentives, etc.
Maintenance:
It is concerned with protecting and promoting employees while at work. For this purpose virus
benefits such as housing, medical, educational, transport facilities, etc. are provided to the
employees. Several social security measures such as provident fund, pension, gratuity, group
insurance, etc. are also arranged.
It is important to note that the managerial and operative functions of HRM are performed in
conjunction with each other in an organisation, be large or small organisations. Having discussed
the scope and functions of HRM, now it seems pertinent to delineate the HRM scenario in India.

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Personnel Management and Human Resource Management (HRM) are very similar and many
would say interchangeably, for example on help-wanted adverts or in job descriptions (.....).
However this is not entirely true, although the difference may be very subtle they are slightly
different.
Intensified competition among domestic private and public sector companies and multinational
companies consequent upon globalization, economic boom and recessionary conditions along
with the changed demographic factors like increase in women employees, aging populations,
shortage of talented employees and adapted mindset and attitude of the people brought paradigm
shifts in organisational and competitive strategies. Different competitive strategies need
distinctive techniques of human resource management. In fact, effective strategy implementation
depends on the strategic human resource management. Thus, appropriate human resource
management assumes greater significance after globalization and consequent economic boom
and recession. Now, most of the organisations recognised the emerging vitality of appropriate
human resource management based on organisational strategies and placed human resource
issues at strategic level in the organisational hierarchy.
Induction and Orientation: Induction and orientation are the techniques by which a new
employee is rehabilitated in the changed surrounding and introduced to the practices, policies,
purposes and people etc., of the organisation.
Acquaint the employee with the company philosophy, objectives, policies, career planning and
development, opportunities, product, market share, social and community standing, company
history, culture etc.
Introduce the employee to the people with whom he has to work such as peers, supervisors and
subordinates.
Mould the employees attitude by orienting him to the new working and social environment.
Recruitment: It is the process of searching for prospective employees and stimulating them to
apply for jobs in an organisation. It deals with:

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Identification of existing sources of applicants and developing them.
Creation/identification of new sources of applicants.
Stimulating the candidates to apply for jobs in the organisation.  Striking a balance between
internal and external sources.
Human resources may be defined as the total knowledge, skills, creative abilities, talents and
aptitudes of an organization’s workforce, as well as the values, attitudes, approaches and beliefs
of the individuals involved in the affairs of the organization. It is the sum total or aggregate of
inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the
persons employed in the organization.
Human resources are multi-dimensional in nature. From the national point of view, human
resources may be defined as the knowledge, skills, creative abilities, talents and aptitudes
obtained in the population; whereas from the view point of the individual enterprise, they
represent the total of the inherent abilities, acquired knowledge and skills as exemplified in the
talents and aptitudes of its employees.
COMPANY PROFILE
INTERNATIONAL BUSINESS MACHINE CORPORATON (IBM) is an American

multinational information technology company headquartered in Armonk, New York, with
operations in over 170 countries. The company began in 1911, founded in Endicott, New York,
as the Computing- Tabulating- Recording Company (CTR) and was renamed “International
Business Machines” in 1924. IBM is incorporated in New York.
TYPE Public
TRADED AS NYSE: IBM
DJIA Component
S&P 100 Component

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INDUSTRY Cloud computing
Artificial intelligence
Computer hardware
Computer software
FOUNDED June 16, 1911; 108 years ago
FOUNERS Charles Ranlett Flint
Thomas J. Wastson Sr.
HEADQUARTERS Armonk, New York, U.S.
AREA SERVED 177 countries
KEY PEOPLE Ginny Rometty (Chairman, President)
IBM produces and sells computer hardware, middleware and software, and provides hosting and
consulting services in area ranging from mainframe computers to nanotechnology. IBM is also a
major research organization, holding the record for the most U.S. patents generated by a business
(as of 2019) for 26 consecutive years. Inventions by IBM include the automated teller machine
(ATM) the floppy disk, the hard disk device, the magnetic strip card, the relational database, the
SQL programming language, the UPC barcode, and dynamic random- access memory (DRAM).
The IBM mainframe, exemplified by the system/ 360, was the dominant computing platform
during the 1960s and 1970s.
IBM, is a US computer, technology and IT consulting corporation head quartered in New York. It
is the world's biggest technology company and the second most valuable by global brand. IBM
manufactures and sells computer hardware and software and offers infrastructure services,
hosting services, and consulting services in areas ranging from mainframe computers to
nanotechnology.
IBM is currently also active in the field of quantum computing research, producing the first
quantum computer in the cloud called the IBM Q Experience and producing the first true
marketable quantum computer, called IBM Q System One.

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IBM has continually shifted business operations by focusing on higher- value, more profitable
markets. This includes spinning off printer manufacturer Lexmark in 1991 and the sale of
personal computer (ThinkPad/ Think Centre) and x86- based server businesses to Lenovo (in
2005 and 2014,respectively), and acquiring companies such as PwC Consulting (2016) and Red
Hat (2019). Also in 2015, IBM announced that it would go “fabless”, continuing to design
semiconductors, but offloading manufacturing to Global Foundries.
Nicknamed Big Blue, IBM is one of 30 companies included in the Dow Jones Industrial Average
and one of the world’s largest employers, with (as of 2018) over 350,000 employees, known as “
IBMers”. At least 70% of IBMers are based outside the United States, and the country with the
largest number of IBMers is India. IBM employees have been awarded five Nobel Prizes, six
Turing Awards, ten National Medals of Technology (USA) and five National Medals of Science
(USA).
In the 1880s technologies emerged that would ultimately form the core of International Business
Machines (IBM). Julius E. Pitrap patented the computing scale in 1885; Alexander Dey invented
the dial recorder (1888); Herman Hollerith patented the Electronic Tabulating Machine.
IBM is headquartered in Armonk, New York, a community 37 miles (60 km) north of Midtown
Manhattan. Its principal building, referred to as CHQ, is a 283, 000- square- foot glass and stone
edifice on a 25-acre parcel amid a 432-acre former apple orchard the company purchased in the
mid-1950s. There are two other IBM buildings within walking distance of CHQ: the North
Castle office, which previously served as IBM’s headquarters; and the Louis V. Gerstner, Jr.,
Centre of learning.
IBM operates in 174 countries as of 2016, with mobility centers in smaller markets areas and
major campuses in the larger ones. In New York City, IBM has several offices besides CHQ,
including the IBM Watson headquarters at Astor Place in Manhattan. Outside of New York major
campuses in the United States include Austin, Texas; Research Triangle Park, North Carolina;
Rochester, Minnesota and Silicon Valley.
IBM real estate holidays are varied and globally diverse. Towers occupied by IBM include 1250
rene-levesque and one Atlantic Center. In Beijing, China.

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They manufactured machinery for sale and lease, ranging from commercial scales and industrial
time recorders, meat and cheese slicers, to tabulators and punched cards. Thomas Watson, Sr.,
fired from the National Cash Register Company by John Henry Patterson, called on Flint and, in
1914, was offered a position at CTR.
In 1937 IBM’s tabulating equipment enabled organizations to process huge amounts of data, its
clients including the U.S. Government, during its first effort to maintain to employment records
for 26 million people pursuant to the Social Security Act, and the tracking of persecuted groups
by Hitler’s Third Reich, largely through the German subsidiary Dehomag.
In 1949 Thomas Watson, Sr., created IBM World Trade Corporation, a subsidiary of IBM
focused on foreign operations. In 1956 the company demonstrated the first practical example of
artificial intelligence when Arthur L. Samuel of IBM’s Poughkeepsie, New York, laboratory
programmed an IBM 704 not merely to play checkers but “learn” from its own experience. In
1961 IBM developed the SABRE reservation system for American Airlines and introduced the
highly successful Seletric typewriter. In 1963 IBM employees and computers helped NASA track
the orbital flights of the mercury astronauts. A year later, it moved its corporate headquarters
from New York City to Armonk, New York. The latter half of the 1960s saw IBM continue its
support of space exploration, participating in the 1965 Gemini flights, 1966 Saturn flights and
1969 lunar mission.
In 1993 IBM posted a US$8 billion loss- at the time the biggest in corporate history. Lou
Gerstner was hired as CEO from RJR Nabisco to turn the company around. In 2002 IBM
acquired PwC consulting, and in 2003 it initiated a project to redefine company values, hosting a
three-day online discussion of key business issues with 50,000 employees. The result was three
values: “Dedication to every client’s success”, “Innovation that matters- for our company and for
the world”, and “Trust and personal responsibility in all relationships”.
In 2005 the company sold its personal computer business to Chinese technology company
Lenovo and, in 2009, it acquired software company SPSS Inc.
Later in 2009, IBM’s Blue Gene supercomputing program was awarded the National Medal of
Technology and Innovation by U.S. President Barack Obama.

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In 2011, IBM gained worldwide attention for its artificial intelligence program Watson, which
was exhibited on Jeopardy! Where it won against game-show champions Ken Jennings and Brad
Rutter. The company also celebrated its 100th anniversary in the same year on June 16. In 2012
IBM announced it has agreed to buy Kenexa, and a year later it also acquired SoftLayer
Technologies, a web hosting service, in a deal worth around $2 billion.
In 2014 IBM announced it would sell its x86 server division to Lenovo for $2.1 billion. Also that
year, IBM began announcing several major partnerships with other companies, including Apple
Inc., Twitter, Facebook, Tencent, Cisco.
In 2015 IBM announced three major acquisitions: Merge Healthcare for $1 billion, data storage
vendor Cleversafe, and all digital assets from The Weather Company, including Weather.com and
the Weather Channel mobile app. Also that year, IBMers created the film A Boy and His Atom,
which was the first molecule movie to tell a story. In 2016, IBM acquired video conferencing
service Ustream and formed a new cloud video unit. In April 2016, it posted a 14-year low in
quarterly sales. The following month, Groupon sued IBM accusing it of patent infringement, two
months after IBM accused Groupon of patent infringement in a separate lawsuit.
In 2015, IBM bought the digital part of The Weather Company.
In October 2018, IBM announced its intention to acquire Red Hat for $34 billion. The acquisition
was completed on July 2019, IBM cut 2,000 jobs.
IBM’s MISSION STATEMENT & VISION STATEMENT (AN ANALYSIS)
International Business Machines Corporation (IBM) has a mission statement and vision
statement strongly associated with the organization and its brand. A company’s corporate vision
statements sets the desired future state of the business, to guide strategic statement and direction.
IBM’s vision statement marks the importance of the leadership of the business in the information
technology industry. In relation, a company’s corporate mission statement determines the types
of actions that define the business, and guides the development of strategies and tactics. IBM’s
mission statement emphasizes operations in the information technology market, inclusive of
computing technologies and related services. The Porter’s Five Forces analysis of IBM shows
that competition is strong, involving firms like Google (Alphabet Inc.), Amazon.com, Intel, and
Microsoft. Also known as Big Blue, IBM uses its corporate vision and mission statements in

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developing competitive advantages against such firms in the industry. In relation, the company
applies its corporate mission and vision statements to influence employees, called IBMers, to
ensure leadership in contributing to the business and to embody excellence in their work.
IBM’s CORPORATE MISSION STATEMENT
IBM’s corporate mission is “to lead in the creation, development and manufacture of the
industry’s most advanced information technologies, including computer systems, software
networking systems, and storage and devices microelectronics. And our worldwide network of
IBM solutions and services professionals translates these advanced technologies into value for
our customers. We translate these advanced technologies into value for our customers through
our professional solutions, services and consulting business worldwide.
OUR INDUSTRIES
Discover how IBM’s breakthrough technologies are transforming industries with smarter ways to
do business, new growth opportunities and strategies to compete and win.
 Aerospace and defense

 Automotive
 Banking and financial markets
 Chemicals
 Construction
 Education
 Electronics
 Energy and utilities
 Government
 Government- US Federal
 Healthcare
 Insurance
 Life sciences
 Manufacturing
 Metals and mining
 Oil and gas

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 Retail and Consumer Products

 Telecommunications, media and entertainment
THE IT INDUSTRY: LANDSCAPE TODAY
BUSINESS VALUE: Services and software to improve business performance.
INFRASTRUCTURE VALUE: Hardware, software and services integrated into a

computing environment.
HIGHLIGHTS
 GAAP EPS from continuing operations of $ 1.78

 Operating (non-GAAP) EPS OF $ 2.25
 Revenue of $ 18.2 billion, down 4.7 percent (down 0.9 percent adjusting for currency)
 Cloud revenue growth accelerated in the quarter; now $ 19.5 billion over the last 12
months, up 10 percent (up 12 percent adjusting for currency)
 As-a-service annual exit run rate for cloud revenue $ 11.7 billion, unto 10 percent year to
year(up 15 percent adjusting for currency)
 Gross profit margin: GAAP, UP 100 BASIS POINTS; Operating(non-GAAP), up 90
basis points
 Pre- tax income margin: GAAP, up 440 basis points: Operating(non- GAAP), up 320
basis points
 Maintains full- year EPS and free cash flow expectations.
ENVIRONMENTAL RISKS AND IMPACT:
IBM’s environmental focus is:
 Energy conservation ;
 Climate protection ;
 Supply chain requirements ;
 Material use ;
 Management of end-of-life electronic equipment ;
The company’s climate protection programme is divided as follows:

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 Energy conservation ;
 Reducing perfluorocompound (PFC) emissions ;
 Procuring and fostering renewable energy ;
 Supporting alternate employee commute options ;
 Increasing the efficiency of logistics.
ENVIRONMENTAL COMPLIANCE:
IBM conducted 600 initial audits from 2004 and 2009, measuring supplier compliance to
both the Electronic Industry Citizenship Coalition (EICC) and IBM Codes of Conduct.
The company has also engaged closely with its industry peers through the EICC in an effort
to understand and map the use of minerals in the electronics supply chain which are coming
from world with social responsibility challenges.
TARGETS AND PERFORMANCE:
 EMISSIONS: In 2009 the company generated 2,436 metric tons x 1,000 of CO2
(2008:2,502).
 ELECTRICITY: In 2009 IBM procured 11.3% of its energy from renewable
sources, compared to 8.6% in 2008,
 WASTE: IBM has a goal to recycle 75% of its hazardous waste and recorded 76%
in 2008 and 2009.
 WATER CONSERVATION: Savings as a percentage of prior year’s use was 3.2%
in 2009 and 2.4% in 2008.
SPOTLIGHT- CSR PROJECT, SMARTER CITIES
In New York, in collaboration with leaders from the Partnership for New York City, the City
University of New York, the Brookings Institution, and other organisations from the public,
private and voluntary sectors, IBM convened 550 high-level executives from more than 185
cities in 25 countries. More than 60 speakers and breakout leaders presented 28 case studies
on different aspects of how the global economy is shaping up as a competition among the
world’s cities, regardless of their location, for talent, investment, and influence. IBM plans

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to continue these dialogues in 2010, including another Smarter Cities regional forum in June
in Shanghai held in conjunction with that city’s Expo.
MISSION:
We strive to lead in the creation, development and manufacture of the industry’s most
advanced information technologies.
We translate these advanced technologies into value for our customers through our
professional solutions and services businesses worldwide.
IBM TODAY:
 The world’s largest information technology company

 The 8th largest corporation in the world
 Year end 2001, IBM reported:
 $85.9 billion in revenue
 $7.7 billion in net income
 More than 30,000 employees worldwide
 More than 670,000 stockholders of records.
BUSINESS OPERATIONS
 Services
 Financing
 Hardware
 Software
 Technology
International Business Machines Corporation (IBM), incorporated on June 16, 1911, is a

technology company. The Company operates through five segments: Cognitive Solutions, Global
Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global
Financing.
Cognitive Solutions
The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive
and prescriptive analytics to cognitive systems. Cognitive Solutions includes Watson, a cognitive

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computing platform that has the ability to interact in natural language, process big data, and learn
from interactions with people and computers. These solutions are provided through delivery
methods, including through cloud environments and as-a-Service models. Cognitive Solutions
consists of Solutions Software and Transaction Processing Software.
Global Business Services
The GBS segment provides clients with consulting, application management services and global
process services. The portfolio of GBS services is backed by its globally integrated delivery
network and integration with IBM solutions and services, including Watson, cloud, blockchain
and Technology Services. It offers Watson Inter of Things (IoT) Consulting Solutions. Under
application management, it delivers system integration, application management, maintenance
and support services for packaged software, as well as custom and legacy applications. Its
business process outsourcing service line delivers finance, procurement, human resources and
industry-specific business processes.
Technology Services & Cloud Platforms
The Technology Services & Cloud Platforms segment provides information technology (IT)
infrastructure services. It delivers a portfolio of cloud, project-based, outsourcing and other
managed services focused on clients' enterprise IT infrastructure environments. The portfolio
includes a set of hybrid cloud services and solutions to assist clients in building and running
enterprise IT environments that utilize public and private clouds and traditional IT. Its Cloud
Infrastructure-as-a-Service covers a range of workloads. Its capabilities include IBM Cloud,
cognitive computing and hybrid cloud implementation. It delivers a line of support services to
maintain the availability of clients' IT infrastructures. These offerings include maintenance for
IBM products and other technology platforms, as well as software and solution support. It
delivers hybrid cloud solutions through its Bluemix Platform-as-a-Service solution.
Systems
The Systems segment provides clients with infrastructure technologies. It offers a range of
systems designed to address computing capacity, security and performance needs of businesses,
hyperscale cloud service providers and scientific computing organizations. The portfolio includes
z Systems, an enterprise platform for integrating data, transactions and insight, and Power
Systems, a system designed from the ground up for big data and analytics, optimized for scale-

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out cloud and Linux. The storage products portfolio consists of a range of software-defined
storage solutions, flash storage, disk and tape storage solutions. The segment also consists of
operating systems software.
Global Financing
The Global Financing segment includes client financing, commercial financing, and
remanufacturing and remarketing. Its client financing offers lease, installment payment plan and
loan financing to end users and internal clients. Commercial financing offers short-term
inventory and accounts receivable financing to suppliers, distributors and remarketers of IBM
and original equipment manufacturer (OEM) products. Remanufacturing and remarketing assets
include used equipment returned from lease transactions or used surplus equipment acquired
internally or externally. The Company also sells the equipment that it purchases from Global
Financing to external clients.
The Company competes with Alphabet Inc., Amazon.com, Inc., Cisco Systems, Inc., Microsoft
Corporation, Oracle Corporation, Salesforce.com, SAP, Accenture, Capgemini, Computer
Sciences Corporation, Fujitsu, Hewlett-Packard, BMC, VMWare, Dell Technologies, Pure
Storage, HP and General Electric Company.
COMPANY DESCRIPTION:
International Business Machines Corp. is an information technology company, which provides

integrated solutions that leverage information technology and knowledge of business processes.
It operates through the following segments: Cognitive Solutions, Global Business Services,
Technology Services & Cloud Platforms, Systems, and Global Financing. The Cognitive
Solutions segment comprises a portfolio of capabilities that help IBM's clients to identify
actionable insights and inform decision making for competitive advantage. It includes Watson, a
cognitive computing platform that has the ability to interact in natural language, process amounts
of big data, and learn from interactions with people and computers. This segment consists of
Solutions Software, which provides the basis for many of the company's strategic areas including
analytics, security and social; and Transaction Processing Software, which includes software that
primarily runs mission-critical systems in industries such as banking, airlines and retail. The
Global Business Services segment provides clients with consulting, application management and
global process services. The Technology Services & Cloud Platforms segment provides

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comprehensive IT infrastructure and platform services that create business value for clients. The
Systems segment provides clients with innovative infrastructure platforms to help meet the
requirements of hybrid cloud and enterprise AI workload. The Global Financing segment
encompasses two primary businesses: financing, primarily conducted through IBM Credit LLC,
and remanufacturing and remarketing. The company was founded by Charles Ranlett Flint and
Thomas J. Watson Sr. on June 16, 1911 and is headquartered in Armonk, NY.
Founded in 1911 following the merger of four companies in New York State by Charles Ranlett
Flint, it was originally called Computing-Tabulating-Recording Company. It would be renamed
to IBM in 1924.
Given that the company is over 100 years old it is no surprise that it has had to adjust to different
technological trends throughout the decades.
The company is now transitioning from being an infrastructure player to one that is more cloud
and data driven.
Nicknamed ‘Big Blue’, the company offers cloud products in the shape of Bluemix, a SoftLayer
cloud, and data analytics, or cognitive computing capabilities, with the Watson supercomputer.
While the company has expanded its portfolio from server hardware, this is still an area that it
operates in with the z Series mainframe.
The company also offers software with the likes of its DB2 database offering, and IBM SPSS.
Ginni Rometty, IBM CEO, said: “Digital is the wires, but digital intelligence, or artificial
intelligence as some people call it, is about much more than that. This next decade is about how
you combine those and become a cognitive business. It’s the dawn of a new era.”
IBM has been focused on continuous innovation for more than a century. Patenting is an
important barometer of that innovation, and IBM has topped the annual list of U.S. patent
recipients for the 20th consecutive year.
After amalgamation, the individual companies continued to operate using their established
names, as subsidiaries of CTR, until the holding company was eliminated in 1933.[17] The
divisions manufactured a wide range of products, including employee time-keeping

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systems, weighing scales, automatic meat slicers, coffee grinders, and punched card equipment.
The product lines were very different; Flint stated that the "allied" consolidation:
... instead of being dependent for earnings upon a single industry, would own three separate and
distinct lines of business, so that in normal times the interest and sinking funds on its bonds
could be earned by any one of these independent lines, while in abnormal times the consolidation
would have three chances instead of one to meet its obligations and pay dividends.[18]
Of the companies amalgamated to form CTR, the most technologically significant was The
Tabulating Machine Company, founded by Herman Hollerith, and specialized in the
development of punched card data processing equipment. Hollerith's series of patents on
tabulating machine technology, first applied for in 1884, drew on his work at the U.S. Census
Bureau from 1879–82. Hollerith was initially trying to reduce the time and complexity needed to
tabulate the 1890 Census. His development of punched cards in 1886 set the industry standard
for the next 80 years of tabulating and computing data input.[19]
[20]
In 1896, The Tabulating Machine Company leased some machines to a railway company but
quickly focused on the challenges of the largest statistical endeavor of its day – the 1900 US
Census. After winning the government contract, and completing the project, Hollerith was faced
with the challenge of sustaining the company in non-Census years. He returned to targeting
private businesses in the United States and abroad, attempting to identify industry applications
for his automatic punching, tabulating and sorting machines. In 1911, Hollerith, now 51 and in
failing health sold the business to Flint for $2.3 million (of which Hollerith got $1.2 million),
who then founded CTR. When the diversified businesses of CTR proved difficult to manage,
Flint turned for help to the former No. 2 executive at the National Cash Register
Company (NCR), Thomas J. Watson, Sr.. Watson became General Manager of CTR in 1914 and
President in 1915. By drawing upon his managerial experience at NCR, Watson quickly
implemented a series of effective business tactics: generous sales incentives, a focus on customer
service, an insistence on well-groomed, dark-suited salesmen, and an evangelical fervor for
instilling company pride and loyalty in every worker. As the sales force grew into a highly
professional and knowledgeable arm of the company, Watson focused their attention on
providing large-scale tabulating solutions for businesses, leaving the market for small office
products to others. He also stressed the importance of the customer, a lasting IBM tenet. The

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strategy proved successful, as during Watson's first four years, revenues doubled to $2 million,
and company operations expanded to Europe, South America, Asia and Australia.
At the helm during this period, Watson played a central role in establishing what would become
the IBM organization and culture. He launched a number of initiatives that demonstrated an
unwavering faith in his workers. He hired the company's first disabled worker in 1914, he
formed the company's first employee education department in 1916 and in 1915 he introduced
his favorite slogan, "THINK," which quickly became the corporate mantra. Watson boosted
company spirit by encouraging any employee with a complaint to approach him or any other
company executive – his famed Open Door policy. He also sponsored employee sports teams,
family outings and a company band, believing that employees were most productive when they
were supported by healthy and supportive families and communities. These initiatives – each
deeply rooted in Watson's personal values system – became core aspects of IBM culture for the
remainder of the century.
INDUSTRY PROFILE:
Discover how IBM's breakthrough technologies are transforming industries with smarter ways to
do business, new growth opportunities and strategies to compete and win.
 Aerospace and defense
 Automotive
 Banking and financial markets
 Chemicals
 Construction
 Education
 Electronics
 Energy and utilities
 Government
 Government - US Federal
 Healthcare
 Insurance
 Life sciences

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 Manufacturing
 Metals and mining
 Oil and gas

 Retail and Consumer Products
 Telecommunications, media and entertainment
 Travel and transportation

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CHAPTER 2
LITERATURE REVIEW

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LITERATURE REVIEW
The concept of Human Resource (HR) was introduced by Prof. L. Nadler (1969) in American
Society for Training and Development Conference. In India, Larson and Tubro Ltd., a private
sector company introduced this concept in 1975 in their organization with an objective of
facilitating growth of employees, especially people at the lower levels. Among the public sector
government companies it was BHEL which introduced this concept in 1980.
Fombrun, Tichy, and Devanna (1984) expanded these premises and developed the model of
SHRM, which emphasizes a ‗tight fit ‘between the organizational strategy, organizational
structure and HR system. According to him, political, economic and cultural forces are
responsible for an organization‘s mission and strategy. This explains these causal relations,
which form the ‗tight fit‘between strategy, organization structure and HR policies and practices.
On the basis of mission and strategy, the shape of organization is structured, i.e., people are
organized to carry out different tasks to achieve the organization‘s mission.
In a survey of human resource development practices conducted by Rao, T.V. (1982) covering
fifty three different industries in India, following facts were observed. Seventeen organisations
(32 percent) had a formally stated policy emphasises on human resource development. The thirty
one organisations (59 percent) did not have any formally stated policy on human resource
development but claimed to emphasise it. In five organisations, there appeared to be no such
emphasis on human resource development. Secondly, Twenty six organisations (49 percent)
stated that their personnel policies give high importance to the continuous development of their
employees. Another twenty one organisations (40 percent) stated that there is some emphasis on
human resource development in their personnel policies. Four of the organisations surveyed
didn‘t seem to lay any emphasis on human resource development in their personnel policies. Two
did not respond. Thirdly and the most importantly, there was a separate human resource
development department in the organisations studied. This survey indicated a positive trend of
using open appraisal system, improving the training function, making up organisational
development activities and using employees counselling by an increasingly large number of
companies.

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Barney (1991) pointed out that firms could develop strategic capability and for attaining this, the
strategic goal will be to create firms, which are more intelligent and flexible than their
competitors. The human resource management function has emerged as one which act as
differentiator among various firms.
Hendry and Pettigrew (1990) proposed that a number of internal factors such as the
organizational culture, structure (positioning of HR), leadership, level of technology employed
and business output directly contribute to forming the contents of HRM.
Snell and Dean (1992) agreed that Human Resource Practices were the primary means by which
firms invested in their employees. Human Resource Management has moved its concern from
domestic focus to multi-national focus, more escalating concern for issues like ecological, health
care, and illiteracy. They also demonstrated that Human Resource Practices to be employee
centric and need to be business centric as well.
Kochan and Dyer (1993); Walker (1993); and Cusworth and Franks (1993) suggested that a firm
should aim at developing various HR practices as complementary to one another.
Mondy and Noe (1993) suggested that activities and practices of HRM can be classified into six
domains: i. Planning and recruitment.
ii. Development and appraisal.
iii. Compensation and reward.
iv. Safety and health.
v. Labor relations.
vi. Human resource research.
Amba-Rao (1994) carried on a study to explore the HRM policies and practices in a small group
of firms and industries in the Indian context. Semi-structured interviews were conducted with
HRM executives and general managers in ten firms in the Hyderabad metropolitan area in India,
to examine their HRM practices. The specific HRM functions considered under this study were:
staffing, performance appraisal, compensation, training, and motivation and employee relations.

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In examining the strategies, several contingency factors were also identified. These included the
firm's internal and external contextual factors. The internal factors were:
(1) Management style;
(2) Degree of centralization of HRM strategies and their linkage with local subsidiary practices
in the case of MNCs; and,
(3) Extent of professionalization and formalization of the HRM department.
The external contextual factors were:
(1) Government role;
(2) labour market conditions;
(3) Organizational information network
(4) Market and technology;
(5) Unions
(6) socio-political factors;
(7) Industry, location or other firm specific factors. The study found that the HRM departments
had a visible role in policy and implementation. Further, all the managers had reported involving
line managers in implementing the HRM function.
Loveday (1994) in his doctoral thesis titled ―A Study of HRM with special reference to
recruitment, selection and training of managerial and non managerial staff in the Nigerian
Banks‖ stated that, ―The most important of all factors of production in business is the human
factor unlike the component part of a machine, the people who comprise a human organism, are
something more than just parts of that organisation. Flesh men and women with sentiments,
ambitions and needs of their own ranging are beyond the confines of the organisation. The
extent, to which these people serve the needs of the organisation willingly, enthusiastically
depends upon the extent to which the organisation serves their needs as aspiring human beings.‖
He also added that, the HRM strategies include job analysis, human resource planning and
forecasting. Efficient HRM ensures that systematic steps are used to recruit, select, train
employees so as to show them the ladder by which they can attain their desired goals.

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Huselid (1995) mentioned in one of his studies that the personnel selection, performance
appraisal incentive attitude assessment compensation, job design, grievance procedures,
information sharing, labour management participation recruitment efforts, employee training,
and promotion criteria are the major HRM practices which prevail in an organisation.
Pfeffer (1998), in his study, mentioned about employment of the various HR practices such as
security, selective hiring of new personnel, self-managed teams, decentralization of decision
making as the basic principles of organizational design, extensive training, comparatively high
compensation contingent on organizational performance, reduced status distinctions and barriers,
including dress language, office arrangements, and wage differences across levels, and extensive
sharing of financial and performance information, compensation practices throughout the
organization, placement practices, training practices, employee grievance procedure,
performance evaluation practices, promotion practices. All such practices are needed for growth
of the organisations. He concluded that having good HRM is likely to generate much loyalty,
commitment or willingness to expend extra effort for the organization‘s objectives.
Stone (1998) remarked that HRM is either part of the problem or part of the solution in gaining
the productive contribution of people. The above quotes suggest that organizations need to
effectively manage their human resources if they are to get the maximum contribution from their
employees.
Wright and Snell (1998) made an important observation that most of the Human Resource
Management Models consisted of ―fit‖ components, which included Human Resource
Management Practices, employee‘s skills and behavior and flexibility. The ―fit‖ components
focused towards responding to a variety of competitive needs required for strategic and
nonstrategic considerations. Kay (1999) also supported this by adding that the Human Resource
Strategy must be an integral to organization‘s strategic processes contributing towards
organization‘s overall performance. It was analyzed that the organizations relationship with
environment could be handled with the help of suitable strategies.

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CHAPTER 3
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
As per Research Methodology I visited IBM on dated June 4 th 2019- July 16th 2019 from 11 am
to 5 pm. I explore theoretical and practical knowledge about HR Practices using Grey HRM and
Orange HRM software used by HR Department and IBM. The purpose of the software was to
execute the HR work in efficient manner. These software developed by IBM and by observation
method I verify the utility of the product in HR Practices.

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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

ORANGE HRM
Launched in 2005, OrangeHRM is the most popular open source human resource management
(HRM) software in the world.
CONTENTS
INTRODUCTION
HR management system that offers a wealth of modules to suit the needs of your business.
OrangeHRM is the most popular open source human resource management (HRM) software in
the world.
ADMIN MODULE
The Admin Module provide you with full control of all settings that affect the action of your
OrangeHRM implementation through admin module you can:
Define company hierarchy, pay grades, work shifts, memberships, qualifications etc.
Configure email notifications
Configure language localizations and date format that will be reflected throughout the whole
system
Enable/ disable module display
The Admin Module is the central control of the system and setting it up accurately is important
for smooth operations.
ADMIN MODULE consists of:
USER MANAGEMENT: add multiple HR admin who will control the system
JOB: allow the HR admin to define job titles,
QUALIFICATION: define skills, education background, language and memberships

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NATIONALITIES: define different nationalities
CONFIGURATION: configure all email notification
PIM (PERSONAL INFORMATION MODULE)
Personal information management is a basic function of any HR department.
PIM module should provide all relevant employee related information and should be available to
admin with full access/ control.
It is a centralized location where all personal details about an employee is stored.
LEAVE MODULE
A comprehensive leave management module with extensive possibilities of defining leave types,
company types, company holidays, applying for an assigning of leave for the employee of the
company. It caters for all application and approval process and is able to display information, an
ESS user is a supervisor and the normal ESS user.
1. RECRUITMENT MODULE
 The recruitment module manages the recruitment process of a company.
The admin can create Vacancies which will be listed on the link jobs.
When applicants are rejected, approved or when interviewers are scheduled,

mails are sent to them. Successful applicants are added to the system.
GOOGLE FORM
A Simple way
 Collect information
 Conduct surveys
 Perform quick assignments
 Can be shared with a link or via email
 Responses can be viewed with option to save them to a spreadsheet or a
Google sheet.

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Forms are among the internet’s most versatile tools. Whether you need a
contact form or a checkout page, a survey or a student directory, a form is all
you need to easily gather that information. With Google forms, it only takes a
few minutes to make one for free.
GOOGLE FORMS – along with Docs, Sheets, and Slides- is part of Google’s
online apps suite of tools to help you get more done in your browser for free.
It’s easy to use and one of the simplest ways to save data directly to a
spreadsheet and it’s the best sidekick to Google Sheets’ spreadsheets.
GOOGLE FORM STEPS:
 Form the Google homepage, select DRIVE.

 Getting Stared
I. Click on New.
II. Select your desired program(Docs, Sheets, Slides)
Note: Click on more forms and drawings.
 Page will appear and there will be untitled form.
 In last we can add tiny URL to our Google form.
WEBSITE DEVELOPMENT
Word Press is a web software you can use to create a highly functional website or blog.
WordPress started as a blogging system, but has since evolved to be used as a full content
management system and so much more through the thousands of plugins, widgets, and themes.
STEPS TO CREATE WEB DEVELOPMENT:
 Search Google for- wordpress.com and then click.

 Click on website.
 Then click on Get Stared.
 Then create an account
 Give an address of your choice to your site.
 Then pick up a free plan- if you are a student.
 Click on continue.

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 Your site has been created.

 You can view and edit your site by clicking on view site.
 Edit your website by clicking on edit.
 You can edit pictures & any information of your choice.
 After adding information to your site then click on update to update your site.
 Your website is ready.
 Then you can make your website- tinyurl.com.
MOBILE APPLICATION
Mobile Application is a computer program or software application designed to run on a mobile

device such as a phone or a tablet. Apps were originally intended for productivity assistance such
as Email, and contact databases, but the public demand for apps caused rapid expansion into
other areas such as mobile games, factory automation, GPS and location based service.
STEPS OF MOBILE APPLICATION:
 Search on Google- App Geyser

 Click on create- Now For Free
 Choose template of your choice
 Click on next
 Then you can choose style of main menu
 Then you can insert logo to your app
 Insert background image
 You have to give name to your app
 Then you have to give description of your app
 For icon click on custom icon and upload or choose the free icons
 Then click on create
 Sign in with Google
 Next step is to scan the QR Code
SHORTCUT KEYS USED IN MICROSOFT OFFICE
 Ctrl +A : Select All

 Ctrl+B : Bold

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 Ctrl+D : Fill Down

 Ctrl+E : Left or Fill
 Ctrl+F : Find
 Ctrl+G : Go to
 Ctrl+H : Replace
 Ctrl+I : Italic
 Ctrl+K : Insert Hyperlink
 Ctrl+N : New Workbook
 Ctrl+O : Open
 Ctrl+P : Print
 Ctrl+R : Fill Right
 Ctrl+S : Save
 Ctrl+U : Underline
 Ctrl+V : Paste
 Ctrl+X : Cut
 Ctrl+Y : Redo
 Ctrl+Z : Undo

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CHAPTER 5
FINDINGS AND CONCLUSION

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FINDINGS AND CONCLUSION

Highlighting the benefits of HR module system: Most time maximum employees are unaware
of how to apply for leave request or how to download pay slip from system. There is minimum
tendency for request leave application through online system rather employee send email to their
supervisor for leave approval. Later HR officer print out the email copy or took down note and
later on adjusted in system. Most time employee failed to view accurate casual/ earned leave
status in system as the fully depend on HRD manual leave status. So strong recommendation for
arrange a training session on “Self-service HR module system” and system modification.
Upgraded attendance software is highly recommended: Manual tracking of leave application

questioned the usefulness of existing attendance tracking system. So selecting the right system is
mandatory. Employee leave request could not able to merge with satellite gateway system. As
HR office manual track down the leave request in paper. Later on adjusted the leave request in
separate excel sheet.
So Link between HR module and attendance system is mandatory. System administration

access to the HR must provide to delete holidays, training, employee visits those are not treated
as leave.
Late attendance over 12 PM treated as leave as HR policy but system can’t detect as leave so
further modification required.
Employee profile image not found in personal profile in HR module, so it can be added in the
system.
Employees must wear the ID card must be visible in office premises: It must be strictly
followed. ID cards are for identity of a person and more over it is a part and parcel of HR
policies. When we talk about professionalism, everything comes into play start in from the dress
code, behavior, attitude and also the ID cards. It can be written down in Code and Conduct.
To ensure the better service effective Human Resource Management Practice is very much
essential. This is certainly the case at the INTERNATIONAL BUSINESS MACHINE (IBM). To
ensure better consultancy service the organization must have to ensure a good Human Resource
Management practice. The area of Human Resource Management is very wide. In this report it
has been tries to show the extent at which IBM practices Human Resource Management at their

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organization. That covers their Training, recruitment and selection process, total compensation
package, performance appraisal system. Human Resource management is the heart of an
organization which plays an important role of getting the right people to do the right job and at
the right places, which helps to ensure the overall achievement of the goals of the organization.
Therefore, the practice of Human Resource Management must be well performance.
LIMITATIONS:
RECENT ORIGIN: HRM is of recent origin. So it lacks universally approved academic base.
Different people try to define the term differently. Some thinkers consider it as a new name of
personnel management.
LACK OF SUPPORT OF TOP MANAGEMENT: HRM should have the support of top
management. The change in attitude at the top can bring good results while implementing HRM.
Owing to passive attitude at the top, this work is handled by personnel management people.
IMPROPER ACTUALISATION: HRM should be implemented by assessing the training and

development requirements of employees. The aspirations and needs of people should be taken
into account while making human resource policies.
INADEQUATE DEVELOPMENT PROGRAMMES: HRM needs implementation of

programmes such as career planning, on the job training, development programmes, MBO,
counselling etc. There is a need to create an atmosphere of learning in the organization.
INADEQUATE INFORMATION: Some enterprises do not have requisite information about

their employees. In the absence of adequate information and data base, this system cannot be
proper implemented.

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BIBLIOGRAPHY
https://www.scribd.com/document/274786704/INTRODUCTION-OF-HR-PRACTICES
https://www.poppulo.com/blog/objectives-of-human-resource-management/
https://th.jobsdb.com/en-th/articles/human-resource-management-nature-scope-objectives-
function-1
https://www.theguardian.com/sustainable-business/profile-ibm
https://www.cbronline.com/what-is/what-is-ibm-4950406/
https://www.bamboohr.com/blog/guide-hr-best-practices/
https://in.reuters.com/finance/stocks/company-profile/IBM
https://finance.yahoo.com/quote/ibm/profile?ltr=1
https://smallbusiness.chron.com/hr-objective-59291.html
https://www.poppulo.com/blog/objectives-of-human-resource-management/
http://www.yourarticlelibrary.com/management/4-important-objectives-of-human-resource-
management/5411
https://th.jobsdb.com/en-th/articles/human-resource-management-nature-scope-objectives-
function-1
http://www.whatishumanresource.com/scope-of-Human-Resource-Management
https://www.managementstudyguide.com/scope-of-human-resource-management.htm
https://www.researchgate.net/publication/314238350_HUMAN_RESOURCE_MANAGEMENT
_PRACTICES_AND_INNOVATION_A_REVIEW_OF_LITERATURE
https://www.researchgate.net/publication/305079178_Literature_Review_on_HR_Practice_in_B
anking_Sector

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Studocu is not sponsored or endorsed by any college or university

SUMMER TRAINING PROJECT REPORT

HR PRCTICES USING GreyHRM & Orange HRM – IBM

Submitted for the Partial fulfillment of the degree of

Bachelor of Business Administration

Under The Guidance of:

Dr. Shweta Gupta

Assistant Professor, FIMT

BBA, VTH SEMESTER

Fairfield Institute of Management and Technology

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

Kapashera, New Delhi- 110037

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Name: Shalu Rao

Enroll. No: 03551401717

Course: BBA (G)

Semester: 5th Semester

Signature of the Student

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First I would like to express my deepest sense of gratitude to FAIRFIELD INSTITUTE OF

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Student Declaration (ii)

Executive Summary (vi)

Chapter 1 Introduction 09-37

(I). Introduction of Topic 09-24

Chapter 3 Research Methodology 44

Chapter 4 Data Analysis and Interpretation 46-50

Chapter 5 Findings and Conclusion 52-53

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INTERNATIONAL BUSINESS MACHINE CORPORATON (IBM) is an American

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4 Main Objectives of HRM

1. Defining Organizational Structure And Driving Productivity

Human Resource Management is a method to realize competence and drive efficiency in

2. Building Coordination between Organizational Departments

Human Resource Management is responsible for coordination and harmonious functionality

3. Offering Employee Satisfaction

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It should gratify individual objectives of employees so that personal and organizational

4. Keeping Up With the Societal And Ethical Models

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The history of development of HR management in India is comparatively of recent origin. But

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 Orientation and induction: - Once the employees have been selected

 Performance appraisal: - Once the employee has put in around 1 year of

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 Compensation planning and remuneration: - There are various rules

 Industrial relations: - Another important area of Human Resource Management is

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 HRM in Personnel Management: This is typically direct manpower management that

It also includes performance appraisal, developing new skills, disbursement of wages,

It also relates to supervision, employee counseling, establishing harmonious relationships

 HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful

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