Management Hierarchy &

HR ImplementationsOf Aditya Birla Group.

(Industrial Sociology)

By Andrea Mendes

Aditya Birla Group

About Birlas Aditya Birla Group started in 1857.

Shiv Narayan Birla started cotton trading operations in the small town of Pilani in Rajasthan.

Ghyanshyamdas Birla(GD birla)-1919-he set the manufacturing company.

Grandson of G.D.Birla is Aditya Vikram Birla(A.V.Birla)-1964

Son of A.V.Birla is Kumar Mangalam Birla(K.M.Birla)-1995.

Some HistoricalAchievements in India

1857 -The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla – cotton trading operations commence at Pilani, Rajasthan.

1947-Grasim is incorporated. (rayon weaving)

1958 -Hindalco is incorporated. (aluminium)

1966-The Indian Rayon Corporation Ltd is acquired.

1986-The Birla Growth Fund is set up. (to finance industrial equipment, plant and machinery and consumer durables, as well as for stock market operations)

1988 -joint venture with Hindustan Petroleum Corporation Ltd (to set up a three-million-ton refinery, Mangalore Refineries and Petrochemicals Ltd.

2000 -Indian Rayon acquires Madura Garments

2006-Hindalco in a joint venture with Almex USA Inc.

Vision And Mission

VISION

To be a premium global conglomeratewith a clear focus on

each business.

MISSION

To deliver superior value to our customers,

shareholders, employees and society at large.

Group ProfileGroup companies Grasim Industries Ltd. Hindalco Industries Ltd. Aditya Birla Nuvo Ltd. UltraTech Cement Ltd.

Indian companies PSI Data Systems Aditya Birla Minacs Worldwide Limited Essel Mining & Industries Ltd Idea Cellular Ltd. Aditya Birla Insulators Aditya Birla Retail Limited Bihar Caustic and Chemicals Ltd.

Joint ventures Birla Sun Life Insurance Birla Sun Life Asset Management

Company Ltd. Birla Sun Life Distribution Company Ltd. Tanfac Industries Ltd.

International establishments

Thailand

Philippines

Indonesia

Egypt

Egypt

China

Canada

Australia

Laos

North and South America, Europe and Asia

Some Of The ProductsVSF

GARMENTS

TEXTILES

Management HierarchyChairman

Chief Executive Officer

Vice President

Assist. Vice President

General Manager

Senior Manager

Chief Financial Officer

Manager

Assistant Manager

Implementations by H.R Department

1. Recruitment Process.2. 360 Degree Appraisal.3. Hierarchy based on Performance of Employees.4. Scholarships to Students and Awards to

Employees.5. Happiness At Work.6. Retirement Policy. Some of the implementations were brought

about by Mr.K.M.Birla himself and were later carried on by the organization's H.R department.

Recruitment process There was a change in the group’s policy in

house recruitment. In 1996, there were some changes made in group’s HR system. Since then hiring of professionals from other companies into the management team was introduced.

360 Degree Appraisal A 360 degree feedback program was introduced in

1999 that permitted managers to raise questions over leadership styles, managerial ability and also personal traits.

After the feedback, each senior manager had to submit a six page letter mentioning the areas of improvement and their expectations.

Hierarchy based on Performance of Employees

Before K.M.Birla took the chairmanship, the hierarchy in the group was determined by seniority instead of merit. He instituted a performance appraisal system. He decided to implement performance management systems, reviewed compensations and accentuated on training to bring meritocracy.

He personally led the recruitment program from business schools.

Scholarships to Students & Awards to Employees

The Aditya Birla scholarship was introduced to promote excellence among students community to cultivate the leaders of tomorrow.

The Aditya Birla awards were launched in 1999 where team achievements are recognized every year.

Happiness at Work The organizational health survey was

introduced by the late 1990s, which measures the “Happiness at work” index. This was carried out to track the employees satisfaction at work.

Retirement policy A retirement policy was introduced in

1995,on the basis of which around 325 senior employees, who were in their early 60s had quit the organization in the next five years. Subsequently about 400 young employees replaced them.