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Godrej Industries Human Resource Management Group No. 6 TYBMS (5 TH SEM) Submitted to: Sadaf Madam 21 September 2011 Anjuman-I-Islam‘s Akbar Peerbhoy College of Commerce and Economics.

Transcript of Godrej Industries - Webs · Godrej Industries Page 4 Board of Directors Adi Godrej Adi Godrej is...

Godrej Industries

Human Resource Management

Group No. 6

TYBMS (5TH SEM)

Submitted to: Sadaf Madam

21 September 2011

Anjuman-I-Islam‘s Akbar Peerbhoy College of Commerce and Economics.

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Group Members:-

Farhan Balde 03

Shrikanth Golpindi 10

Prasad Naik 19

Amir Qureshi 25

Muazzam Sayed 28

Tahmeena Sayed 30

Asma Shaikh 33

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Index SR. NO. TOPIC PAGE NO.

1. Introduction to Godrej 3

2. Company Profile 3

3. Board of Directors 4

4. History 5

5. SWOT Analysis 10

6. Groups of Companies 11

7. Introduction to HRM 12

8. HRP 16

9. Recruitment 18

10. Selection 22

11. Training and Development 24

12. Compensation Management 35

13. Payroll 40

14. Performance Appraisal 43

15. Career Planning 53

16. Awards 55

17. Conclusion 56

18. Bibliography 57

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Godrej Industries

Motto of Godrej: We care the quality of your life.

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Board of Directors

Adi Godrej

Adi Godrej is the Chairman of the Godrej Group and several entities

that are part of one of India’s leading conglomerates. These include

Indian companies like Godrej Industries, Godrej Consumer Products,

Godrej Properties as well as international companies such as Keyline

Brands U.K and Rapidol South Africa.

A Mahendran

A. Mahendran is Managing Director, Godrej Consumer Products,

India's premier FMCG Company. He is also Director of Godrej

Household Products (formerly known as Godrej Sara Lee) and Godrej

Hershey.

Jamshyd Godrej

Jamshyd Godrej is the Chairman of the Board of Godrej & Boyce . He

graduated in Mechanical Engineering from Illinois Institute of

Technology, USA. He is the Chairman of Aspen Institute – India.

Nadir Godrej

Nadir Godrej is the Managing Director of Godrej Industries and

Chairman, Godrej Agrovet. He is also a Director of numerous firms

including Godrej & Boyce, Godrej Foods, Godrej Consumer Products

and Godrej Household Products.

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History

History of The Company: Established in 1897, the Godrej group has grown in India

from the days of the charkha to nights at the call centers. The founder, Ardeshir

Godrej, lawyer-turned-locksmith, was a persistent inventor and a strong visionary

who could see the spark in the future. His inventions, manufactured by his brother

Pirojsha Godrej, were the foundation of today’s Godrej empire. One of India’s most

trusted brand, Godrej enjoys the patronage and trust of over 400 million Indians

every single day. Their customers mean the world to them. They are happy only

when they see a delighted customer smile.

With 7 major companies with interests in real estate, FMCG, industrial engineering,

appliances, furniture(FMCD), security and agri care – to name a few – their turnover

crosses 2.5 billion dollars. We can think of Godrej as such an integral part of India –

like the bhangara or the kurta – that we may be surprised to know that 20% of their

business is done overseas. Their presence is in more than 60 countries ensures that

our customers are at home with Godrej no matter where they go. With brands we

can believe in, service excellence we can count on and the promise of brighter living

for every customer, Godrej knows what makes India tick today. Today, there is a

point in Godrej’s history when their amazing past is meeting up with their spectacular

future on.

TIMELINE:

1897 - Godrej & Boyce Mfg. Co. Ltd established

1918 - Godrej Soaps Limited incorporated

1961- Godrej Started Manufacturing Forklift Trucks in India

1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej

Soaps

1974 - Veg oils division in Wadala, Mumbai acquired

1990 - Godrej Properties Limited, another subsidiary, established

1991 - Foods business started

1991 - Godrej Agrovet Limited incorporated

1994 - Transelektra Domestic Products acquired

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1995 - Transelektra forged a strategic alliance with Sara Lee USA

-

.

2001 - Godrej Consumer Products was formed as a result of the demerger of

Godrej Soaps Limited. Godrej Soaps renamed Godrej Industries Limited

2002 - Godrej Tea Limited set up

2003 - Entered the BPO solutions and services space with Godrej Global

Solutions Limited

2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to

customers by providing professional pest management services

2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed

Godrej Beverages & Foods Limited

2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey

Company of North America and the company was renamed Godrej Hershey

Foods & Beverages Limited

2008 - Godrej relaunched itself with new colourful logo and a fresh identity

music

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1)1897: The Start Of Godrej : Godrej Lock`s:

2) 1918: The Journey of the 1st Cinthol.

3) 1923: Godrej Almirah`s:

It In 1897, Ardeshir Godrej, our founder , learned the first lesson

of success : failure. Not one, but two of his businesses went bust.

Then he set up a lock company. What followed is the stuff of

legend. Today, over 400 million Indians are keyed into his vision.

Here was a man who did not fall with failures. Over 100 years on,

his perseverance is inspiration for many

Godrej moved into the office equipment market and made its

first huge and solid almirah which was built to last , and

which is one of godrej`s guiding philosophies for all its

products. Eight years later Godrej almirah`s had flashier

shades and niftier locks. For years Godrej almirah`s have been

a timeless icons of a fathers love for his daughter and a

wedding present.

In 1918, Godrej went against the tide of the Raj , and

launched the first soap in the world to be made without

animal fat. Since its relaunch in 1952, its market share

has been on a steady decline— from a peak of 15% in

the 1980s to 9% in 1993 (when the company severed

ties with Procter & Gamble) to 4.8% in 1999. Now,

Cinthol has only 3% of the Rs 6,000 crore soap market.

Godrej, with all its soap brands, is number two in the

Indian soap market, but has a market share of just

around 9%. Market leader Hindustan Lever controls

over 50%.

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4)1944: Fire and Godrej safes:

5)1951: Ballot Boxes:

6)1958: Refrigerators:

In 1944 , the SS Fort Strikine carrying a

mixed cargo of cotton , gold and

ammunition caught fire. The resultant

explosion was catastrophic, taking human

lives and destroying whole buildings. One

of the few things to survive was Godrej

Safes and it proved that it survived the

biggest explosions of that time, hence

Godrej safes are really safe.

In 1951 , The Election Commissioner asked Godrej to make the ballot boxes for free

India`s first elections. Within 7 days , 1.7 million ballot boxes were shipped out from

Vikhroli to every corner of India.

In 1958, Godrej made its first refrigerator.

The earlier refrigerators were simple ones

and but Godrej refrigerators today like

Godrej EON, Edge, and PentacoolV2 cater

brilliantly equipped with technology like

cool shower technology and polybag

suspenders. Etc.

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7) 1974:

Godrej was the first to go green in 1974 , maintaining mangroves till date in the heart

of Mumbai. They act as huge reservoir for Mumbai in todays polluting world.

9) 1986: Godrej Hair Dye` and in 1995: Godrej Washing Machines:

10)2008:

Godrej helped Indians go over the moon. They helped develop the launch vehicle and

the lunar orbiter for Chandrayaan – 1, India`s first unmanned mission to the moon.

Godrej Hair dye`s are extremely

popular.

Godrej Washing Machines with

Stellar force technology and

Force4 technology.

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SWOT Analysis of the Company:

Strengths

Cost advantage

Asset leverage

Effective communication

Online growth

Loyal customers

Market share leadership

Strong management team

Strong brand equity

Strong financial position

Supply chain

Pricing

Reputation management

Weaknesses

Lack of capital invrestent r &d

Lack of innovation

Lack of Mnc culture

Hierarchial structure

Opportunities

Acquisitions

Asset leverage

Emerging markets and expansion abroad

Online

Product and services expansion

Takeovers

Threats

Competition

Cheaper technology

Economic slowdown

External changes (government, politics,

taxes, etc)

Exchange rate fluctuations

Lower cost competitors or imports

Maturing categories, products, or services

Price wars

Product substitution

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Godrej Group of Companies

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Introduction to Human Resources

Management

Human Resource Management (HRM) is the function within an organization

that focuses on recruitment of, management of, and providing direction for

the people who work in the organization.

Work culture:

Creating and maintaining an energetic and innovative work culture is at

the heart of their corporate strategy. They strive to create an organization

wherein each employee is a stakeholder in building and defining the culture

of the organization and has the opportunity and flexibility to define their

canvas of roles and responsibilities.

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Opportunity for growth

The work culture in Godrej supports learning at every stage of one‘s work

life. Opportunities in learning are available in the technical, functional,

behavioural, general management and leadership areas through options

like EDPs (Executive Development Programmes), MDPs (Management

Development Programmes), E-learning and On The Job exposure to

International Practices.

Respect and recognition of performance is an inextricable part of our work

culture. Consistent performance becomes the benchmark for growth

opportunities, job rotations, remuneration, reward and recognition. They

provide equal opportunities to their employees to grow both horizontally &

vertically through cross functional, cross business and cross locational job

rotations. This gives immense opportunities to professionals to add value to

themselves & to satisfy their career aspirations.

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Hierarchy:

Personal department comprises of four employees- one deputy and 3 seniors under

him.

19 plants make all different products like security systems, locks, doors, etc. Each of this

plant is considered as a separate profit making center. Profits made by each of the

plants are accounted for separately in its Annual report also.

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Management:

Different levels of management are as follows:

Each of this level consists of three sub-sections, through which each employee has to

pass to reach a higher level. An employee, before moving into the next level, he has to

be in each sub section for at least two years.

Management

A - Base Level of

Management

O - Operation

P - Promotion of Product

T - Technical

S - Sales

E – This Level Consists of Owners &

M.D

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Human Resource Planning:

HRP is understood as the process of forecasting an organization‘s future demand for,

and supply of, the right type of people in the right number. It is only after this that the

HRM department can initiate the recruitment and selection process. HRP is a sub-system

in the total organization planning. Organizational planning includes managerial

activities that set the company‘s objectives for the future and determines the

appropriate means for achieving those objectives. .an integrated part of strategic

management HRP is variously called strategic manpower planning, or for employment

planning.

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Planning In Godrej

The costs of Human Resource planning are kept minimal as each plant/ profit

centre has its own Personal Department which provides all the respective plant‘s

requirements. Each personal department comprises of four members.

The short term planning is conducted by each plant‘s personal department with

each team‘s respective heads.

The Long term planning is performed by superiors of each department in

accordance with company‘s interests and objectives.

The internal detailed planning is planned by each team separately.

In this way, it is lesser time consuming, energy, economic and also effective. The

decisions are agreed upon by most of the team members so they are more

focused, clear, satisfied that even they have a say in the working and meeting

the targets set.

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Recruitment

Definition of Recruitment:

According to Edwin Flippo-

―Recruitment is the process of searching for prospective

employees and stimulating them to apply for jobs in the

organisation.‖

Causes of Recruitment:

Vacancies due to-

Promotion,

Transfer,

Retirement,

Permanent disability,

Death etc.

Internal Sources

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Methods of Recruitment:

1. Internal

2. External

Internal Sources:

Promotions

Transfers

Internal Notification (References)

Retirement

Recalls

Former Employees

Methods of Recruitment

Internal Sources

External Sources

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External Sources:

Campus Recruitment

Press Advertisement

Management Consultancy

Deputation of Personnel

(Transfer from one enterprise to another)

Walk-ins, Write-ins, and Talk-ins.

Recruitment by Godrej: Godrej recruit fresh Graduates and Post Graduates from leading

Educational Institutions in the following disciplines:

Arts/Science/Commerce.

Production/Civil/Architecture/Electronics/Electrical/Automobile/Me

chanical/Computers Engineering.

Legal/Accounts and Finance.

Marketing/Operations/Human Resources/Business Management.

Product Design.

Research and Development.

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Format of Job posting on web

recruitment portal.

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Selection

Definition of Selection

According to Thomas H. Stone,

―Selection is the process of differentiating between applicants in

order to identify and hire those with a greater likelihood of

success in a job.‖

G.S.T (GODREJ SELECTION TEST)

It consists of 3 rounds:

1. General Intelligence.

2. Essay writing.

3. Interview.

General Intelligence:

It doesn‘t mean General Knowledge questions but it stands for right thing at

right time.

For clearing this round, there is no need for special preparations but there is

the time limit.

Candidates have to clear 40 questions in 15 minutes, and questions will be

like followings

Opposite of RAW is: __________

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JOLLY means: __________

If ink is to PEN then sugar is to __________

Essay Writing:

Candidates have to write an essay of 200 words on any of the following

topics(examples).

Wonders of modern science

Should smoking ban in public places?

Your favourite sports

Globalization

Interviews:

This is a final round consisting of simple technical and HR questions.

Once a candidate passes all this stages of recruitment he is eligible to work

in godrej.

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Training & Development

at Godrej

Mission Statement

To operate in existing and new businesses, which capitalize on the Godrej

brand.

To delight customers both in India and abroad through improvement in

quality, cost and customer service.

To strive for excellence by nurturing, developing and empowering

employees and suppliers.

To encourage an open atmosphere conducive to learning and team work.

Some of the bests Training & Development Programs by Godrej.

Total Quality Management Workshops

Parivartan

Economic Value Added Training

GALLOP

SPARK

E- Gyan

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Interpersonal Effectiveness & Negotiation Skills

English Language Training for Workers

BPO Training

Workshop on Life Cycle Assessment

Total Quality Management (TQM) Workshops

Godrej started total quality management (TQM) workshops in 1995, to

inculcate a `positive work culture‘ in the company. In 1997, all the 5,000

employees of GSL were put through a three-day workshop as part of the

―visioning‖ session of TQM…

‘Parivartan’

In 2000, ‗Parivartan‘ was launched in GSL with the objective of motivating employees as well as imparting knowledge about the sales functions of GSL. A team of 18 senior executives from all divisions spanning sales, logistics and HR were called on to provide necessary inputs…

Economic Value Added (EVA) Training

In 2001, Godrej introduced Economic Value Added (EVA) in all its group companies. An extensive training program was undertaken for various managerial and officer levels. Over 500 employees were trained to manage EVA by making appropriate decisions involving investments and/or trade-offs between the income statement and the balance sheet. This

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training programme was conducted by Stern Stewart, New York based management consultancy who had pioneered the concept of EVA.

GALLOP

GALLOP was instituted in early 2002 as a structured and organised induction-training programme at Godrej. GALLOP aimed at nurturing the new recruits into leaders and dynamic performers through this one-year programme. The programme started with an induction speech by the chairman, followed by the speeches by the CEOs of all the group companies.

The trainees were rotated in four departments other than their primary department including a compulsory sales stint. This mandatory rotation in sales enabled the trainees to get a hands-on experience in understanding the market.

The objective of GALLOP was to develop a newcomer into a professional by giving him or her exposure to various departments and inculcate in him or her, a sense of belonging.

Later, in September 2002, GIL introduced Spark, a training programme for managers to help them become effective coaches. Towards the end of 2002, E-gyan was introduced in GIL to increase the learning potential of employees.

In January 2003, a special HR programme on honing the interpersonal and negotiation skills of officer- level employees was launched in GIL. Further, in October 2003, an English language training programme was held for floor workers of Godrej and Boyce Manufacturing Company Ltd (GBML), so that they could follow all instructions issued in that language independently.

Spark

The objective of the Spark programme, initiated by GIL in September 2002, was to ―train the trainers‖. The training programme was aimed at equipping

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the managers to become successful coaches. GIL, in association with a Delhi-based HR consultant, conducted a host of workshops to enable the managers assume the role of a coach…

E-Gyan

E-Gyan was the e-learning initiative of GIL launched in the second half of 2002. It was an attempt to move away from traditional training methods of workshops and help sharpen the intellect of the employees by self- learning initiatives. Initially, Satyam Education Services Ltd was the content provider and rendered the entire gamut of learning resources through its e-learning portal -learnatsatyam.com. Internal communication measures like ‗enrolment on a first-come-first-serve basis‘ and ‗be the first e-gyanee‘ were circulated…

Interpersonal Effectiveness & Negotiation Skills

Good negotiation is much broader than any one of these individual

emphases. It does include Avoiding the common mistakes, good planning,

understanding and working out legitimate differences,

Acting with integrity, and dealing effectively with intimidating and

manipulative behavior.

What, then, is good negotiation? Negotiation is a process. It is the process of

determining and moving toward meeting, with integrity, all involved parties‘

perceived needs. Good negotiation is doing that well.

Doing so requires more than a casual awareness of human behavior. In fact,

it demands an in-depth understanding of what motivates human emotion and

behavior.

Good negotiators are consciously striving to be more aware of both their

own patterns and those of their counterparts. Those who do the best at this,

with integrity, are the more successful negotiators.

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There are no ―right‖ or ―wrong‖ answers, but there may be ways that are

more effective. Often, the person who makes the biggest ―mistakes‖ learns

the most. Relish your ―mistakes.‖ Look for your patterns. They are where the

real opportunities to learn and grow reside.

As each group differs somewhat in its needs, perceptions, and pace, the

time spent on any one topic and the order in which the topics are presented

will vary.

This workshop will cover a significant amount of material in a short time.

Each module builds on the previous one. Therefore, it is important that you

are not unclear about any point. Confusion builds if not dealt with

immediately. If anything is unclear, please make that known, and we will

take the time to provide appropriate clarification. We welcome and

encourage any suggestions that you believe will facilitate your learning

process.

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Leadership

The process of successfully influencing the activities of a group towards the

achievement of a common goal. A leader has the ability to influence others

through qualities such as personal charisma, expertise, command of

language, and the creation of mutual respect. As well as requiring strong

Communication Skills and Personal Skills, leadership uses the Background

skills of mentoring, decision making, delegation and motivating others.

Networking

The ability to actively seek, identify and create effective contacts with others, and to maintain those contacts for mutual benefit. In addition to strong Communication Skills and Personal Skills, Networking uses the Background skills of network building and motivating others.

Teamwork

Involves working with others in a group towards a common goal. This requires cooperating with others, being responsive to others' ideas, taking a collaborative approach to learning, and taking a responsibility for developing and achieving group goals. Teamwork uses the Background skills of collaboration, mentoring, decision making and delegation.

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Workshop on Life Cycle Assessment

Organizer: Confederation of Indian Industry CII – Sohrabji Godrej Green Business Centre

Venue: CII – Sohrabji Godrej GBC, Survey No. 64, Kothagunda Post, Near Hitech City, R R District, Hyderabad

Topics covered

Introduction to life cycle assessment Demonstration of LCA software tool Case study presentations

Description

A life cycle assessment {LCA}, also known as life cycle analysis, ecobalance, and cradle-to-grave analysis.

It is a technique to assess environmental impacts associated with all the stages of a product's life from-cradle-to-grave (i.e., from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling

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LCA METHODOLOGY

Life cycle assessment (LCA) models the complex interaction between a

product and the environment from cradle to grave. It is also known as

life cycle analysis or ecobalance.

What is LCA? The International Organisation for Standardisation (ISO), provides guidelines for conducting an LCA within the series ISO 14040 and 14044. The main phases of an LCA are:

Goal & Scope definition, the product or service to be assessed is defined, a functional basis for comparison is chosen and the required level of detail is defined.

Inventory analysis of extractions and emissions. An inventory list of all the inputs and ouputs of a product or service.

Impact assessment the effects of the resource use and emissions generated are grouped and quantified into a limited number of impact categories which may then be weighted for importance.

Interpretation, the results are reported in the most informative way possible and the need and opportunities to reduce the impact of the product(s) or service(s) on the environment are systematically evaluated.

Below is a more detailed overview of the four steps involved in an LCA study. For more detailed information about Goal & Scope please see our SimaPro Introduction to LCA.

Goal & Scope Inventory analysis Impact assessment Interpretation

Interpretation Interpretation according to ISO 14044 describes a number of checks you need to make to ensure the conclusions are adequately supported by the data and procedures used in the study. The following checks are recommended:

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Uncertainty Sensitivity analysis Contribution analysis

Goal & Scope definition The goal & scope defnition is a guide that ensures the LCA is performed consistently. In this section the most important (often subjective) choices of the study are described in detail i.e. methodological choices, assumptions and limitations, particularly with regards to the following issues.

System boundaries Multiple output processes/allocation Avoided impacts

BPO Training

BPO is Business Process Outsourcing. It is an agreement between two parties

for specific business task. The BPO industry is growing at an annual growth

rate of 14% and is expected to cross $310 billion by 2008. Job seekers

prefer BPO‘s over other sectors because it is providing high paying jobs

to graduates/undergraduates. To deliver desired services to customer, who

is 10,000 miles away, it is important to have good amount of business

knowledge and required expertise.

Training has become a major tool to retain employees. People working in

BPO sector face the problem of night shift, job stress that results in de

motivation. Well designed training program with clear career path

increases the job satisfaction among the young professionals and help them

in becoming efficient and effective at the work place. Therefore,

organizations have to handle such challenges of meeting training needs,

although, the sector is taking a lot of initiatives in conducting training for new

joinees. Companies are now aligning business goals with training costs. But

what more important is, is the development of the skills of middle

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management. Various BPO‘s have an elaborate training infrastructure that

includes Computer-Based Training rooms, and specially trained and

qualified in-house trainers.

The companies are now busy designing training programs for their

employees. These companies try identifying the strengths and weaknesses

and are emphasizing more on their personalities, problem-solving skills, and

leadership skills.

With constant change in processes, technologies, techniques, methods, etc,

there is a constant need of updation, training and development the BPO

employees to consistently deliver customer goals.

Areas Covered in Training Programs

The specific areas where training is given in BPO sector are:

al Property Research and Documentation

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Criticisms

One criticism against the training and development programs at Godrej was that there were no measurement techniques to judge the effectiveness of the programs. For

example, no specific measures were developed to determine the extent to which the interpersonal and negotiation skills training aided the employees to develop a more

robust business concept…

Issues:

» Understand the training and development initiatives in a large organization

» Understand how an organization responds to change and manages change

» Understand the role of the HR department in managing change in an organization

» Understand how the top management in an organization facilitates the process of change

» Understand what constitutes a learning organization.

» Understand the limitations of training and development initiatives in driving change

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Compensation

Definition:-

Compensation may be defined as money received in the performance of work, plus many kinds if benefits and services that organizations provide to their employees

Large majority of industrial disputes, strikes ,lock outs,etc are related to compensation

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Types of compensation

Basic compensation

Supplementary compensation

Incentive compensation

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Godrej believes compensation given should be smart

Sincere

Meaningful

Acceptable

Rational

Timely

Fringe benefits offered by godrej are –

Employees are covered under the Company‘s medical benefits scheme. Health care includes a variety of facilities such as preventive measures, a dental clinic, physiotherapy, a pathology laboratory, a psychiatric clinic, yoga classes and a gymnasium. The immunization programme in Godrej is the best in Maharashtra, perhaps in the whole of India.

Godrej industries provides some insurance medical policies listed below -

Doctor on site

Pre medical check up

annul medical check ups

Handling accidents, emergencies

Cashless hospitalization

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Perquisites offered by Godrej are as follows

Housing facilities for employees: the first project for workers was taken in the hand in 1951 the project known as Betthi Chawl

They have 450 acres of area at Vikhroli for their for their employees and other top management executives

They provide educational facilities for employees children

They also offers ESOP (Employee Stock Option Plan )

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Payroll

Payroll system is the heart of any human resource system of an organization. The solution has to take care of calculation of salary as per rules of the company, income-tax calculation and various deductions to be done from salary including statutory deductions like income tax and provident fund deductions. It has to generate pay-slip, cheque summary and mis repo

Payroll system

Employee information system

Attendance and leave management

Earning & deductions

Loan accounting system

Employee information system

Personal information

Bank account

Family information

Company information

Qualification

Leave eligibility

Experience

Salary

Health information

Earning & deductions

Earning types

Earning definition

Regular (e.g. Basic, conveyance, hra etc.)

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Grade-wise or employee-wise

Adhoc (e.g. Bonus, performance incentives etc.)

Fixed value or formula based

Statutory deductions

Monthly or yearly

Pf

Accumulation

Eps

Other deduction

Income tax

Adhoc (e.g. Loans, advances etc.)

Reports

Payslip Income tax statement Attendance register Form no 16 Department-wise salary Loan statement Employee-wise salary Loan letter Salary disbursement Pf contribution

Loans and advances

Loan types Loan eligibility Loan management

O Application

O Balance tracking

O Recovery

Loan disbursement to institutions

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Employee investments

Investment definition

O Investment types

O Investment limits

Investment management

O Proposed investments

O Actual investment

PAYROLL

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Performance Appraisal of Godrej Ltd

What is Performance Appraisal ?

• It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization.

• Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training.

What is Godrej focus/Expectation from employees?

• If you are an energetic, creative professional with a burning desire to perform, learn and grow

– Godrej could well be right place to build your career.

What are the Methods used by GIL

ORGANITATINAL assessment process.

Management assessment process.

360-degree appraisal.

Behavioral observation scale.

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Behaviorally anchored rating scales.

Organitatinal assessment process.

WHAT IS AN ORGANIZATIONAL ASSESSMENT?

A Baldrige-style organizational assessment is a very comprehensive, factual and objective appraisal of how the organization is managed Using Baldrige (or similar) criteria, it examines the following aspects of an organization:

how the organization is led, in order to provide vision and direction how appropriate information is gathered and used to plan for the

future how people's talents are developed and harnessed how the organization determines exactly what its customers need --

and sets out to meet these needs how the flow of work is organized, to eliminate waste and error,

and hence improve products and services how the organization is performing, from various perspectives:-

customer/marketplace, employee morale and involvement, productivity, efficiency, and financial performance.

WHAT ARE THE MAIN BENEFITS OF AN ASSESSMENT?

A properly designed and executed assessment achieves all of the following benefits:

it builds a commitment to change among the key players it provides a reliable, repeatable method of identifying the 'vital

few' areas for improvement – those issues which have the most leverage in improving performance

it provides the essential starting point for developing a detailed (project-by-project) improvement plan

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it provides a way of driving continuous improvement year after year – by building an assessment step into the annual planning cycle.

HOW DOES THIS PROCESS DIFFER FROM OTHERS?

What makes this process different from other types of audit or review is mainly the criteria used – such as the Malcolm Baldrige National Quality Award, the Canada Awards for Excellence or the European Quality Award.

These criteria are superb, refined instruments, which have been developed and fine-tuned over more than a decade by the foremost experts in this field.

WHAT DOES THE ASSESSMENT PROCESS LOOK LIKE?

The assessment process typically looks something like this:

The first, all-important step is to provide an education and planning session to engage the senior executives.

This step is designed to:

clarify for them the assessment goals, potential benefits, and the overall process

ensure that they understand and accept the criteria to be used

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give them a 'taste' of how self assessment works, so that they understand the nature of the beast (it very different from an audit, for example)

set their expectations regarding the rest of the process and the outcomes

ensure that they understand their role – and especially that they must take action at the end, based upon the findings.

The next step is data gathering. This is normally done by an internal assessment team, after suitable training. The assessment team interviews a cross-section of the organization, using both individual interviews (for senior people) and group interviews (for front line staff). During the data gathering process, team members document what they learn from each interview, and share this information with the rest of the team.

Once the interviews are complete, the team can review what it has learned and develop the findings, with guidance from an outside expert.

These findings are set out in a 'feedback report', which follows the structure of the criteria and identifies strengths and areas for improvement in each category. Finally, based upon all of this information, they develop a few recommendations – identifying the 'vital few' priorities for improvement that have the most leverage.

The next step is sharing of the findings with the executives. This is where the 'rubber hits the road' in the sense that this is a critical session, where the executives can become upset or go into denial. However, if all the earlier steps in the process have been conducted properly then this session will go smoothly, and the executives will accept the report in full – after a few hours of careful listening and intense discussion.

The stage is now set for developing improvement plans. This is typically carried out in a 1-day planning workshop very soon after the feedback report was delivered. The internal team members participate and make an excellent contribution during this workshop, due to the experience that they have gained. Once this is done, all that remains is implementation and follow-through.

This is a typical assessment. There are also other approaches, some designed for greater speed and simplicity (eg for organizations just

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starting out), others for greater thoroughness (eg for high-performing organizations).

WHAT IS THE ASSESSMENT PROCESS USED FOR?

The assessment process is used to:

build commitment and engage key players identify the 'vital few' areas for improvement prepare an improvement plan.

Although the need for change may be clear, many organizations have great difficulty in achieving a consensus regarding what to tackle first. If there are 12 members of the senior management team – all competent, all committed to doing their best for the organization – then there will be at least 12 opinions regarding what to do. This is because each is very aware of his or her departmental goals, feels very responsible for delivering on these commitments, and is very aware of the departmental issues that are causing difficulties. Since they all have different information and different perspectives, there is little prospect of achieving consensus on what to do.

In contrast, when the assessment process is complete, there is a strong alignment. Everyone in the group is now working with a common frame of reference (the criteria) and everyone has the same information regarding the current state (the final report from the process).

Also, since everyone is looking at the organization from an overall system viewpoint, it becomes obvious that functional/ departmental issues are secondary to improving overall performance. In this situation, it is easy to develop a consensus.

Experience with this process has demonstrated time after time that:

given the same information, any group of rational people will come to the same conclusions regarding what needs to be done!

And this is indeed what happens. The external consultants, the internal assessment team, the senior executives -- all come to similar conclusions about what needs to be done. This also means that people who have been involved in the process are likely to become committed to support the resulting actions – to buy in and to take ownership.

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The consensus that develops is usually focused on a fairly small number of high-leverage issues – say 3 to 6 at most. These are the 'vital few' actions that will have the most impact on performance. It is now relatively straightforward to translate these into detailed action plans, to integrate these into the business plan, and to assign executive responsibility for implementing these over the next year or so.

HOW DO ASSESSMENTS HELP SUSTAIN IMPROVEMENT ?

When the assessment process has been completed and an improvement plan developed, it is usually obvious to everyone involved that this should not be just a 'one-off' exercise. It makes sense to repeat the process at some time in the future in order to measure how much progress has been made, and to identify a new 'vital few'. Some high-performing organizations take this a step farther and build self assessment right into the annual planning cycle. Used in this way, the process becomes a robust mechanism for driving continuous improvement year after year, forever.

Management assessment process.

Management Assessment is a tool to help ensure the long-term competitive strength of organizations. It provides a strategic view to a client‘s Talent Context—the resources, development needs and capacity to deal with key strategic issues. As a result, our clients are much better placed to understand and plan for issues of leadership and succession planning. Management Assessment allows companies to benchmark their internal resources with the market on both a local and global level.

Management Assessments are particularly useful in situations relating to changes in senior management, succession planning, mergers or acquisitions, identification of senior executive development needs and to highlight areas of organizational strength and weakness.

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MANAGEMENT TEAM ASSESSMENT PROCESS

360-DEGREE APPRAISAL.

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees‘ performance comes from all the sources that come in contact with the employee on his job.

360 degree appraisal has four integral components: 1. Self appraisal

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2. Superior‘s appraisal 3. Subordinate‘s appraisal 4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior‘s appraisal forms the traditional part of the 360 degree performance appraisalwhere the employees‘ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior‘s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees‘ abilities to work in a team, co-operation and sensitivity towards others. Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees‘ performance and is considered to be one of the most credible performance appraisal methods.

360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others‘ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

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BEHAVIORAL OBSERVATION SCALE.

A QUALITATIVE based performance appraisal (PA) method has been

developed to handle this problem, called Behavioral Observation Scale

(BOS). The rationale is simple. Good behavior will produce good

performance, bad behavior will be a distortion. This method is applicable

for production-employees performance, too.

The key factor of measurement in this method is determining the behaviors in

workplace that related to the success or the failure, partially or generally,

to the jobs.

There are some consideration in making an effective BOS:

1. The behaviors on the job must be JOB EVALUATION based analysis. 2. Critical Incident Technique (CIT) should be performed to minimize the

bias of performance measurement 3. BOS should be performed by better qualification of supervisor

The instrument of BOS is ordinal scale questionnaires (usually 1-5, or 1-7

scale). The question is related to the FREQUENCY of the GOOD or BAD

BEHAVIOR.Note that higher score is given to higher frequency good behavior.

Lower score for higher frequency of bad behavior!. Do some Correlation

Test (stastical analysis) for each factors that investigated by each questions

for better measures.

The TOTAL PERFORMANCE of an employee is THE SUM OF THE SCORE OF THE QUESTIONNAIRE. Better employee (better performer) is someone reach higher score.

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Behaviorally anchored rating scales.

Behaviorally anchored rating scales (BARS) are scales used to rate performance. BARS are normally presented vertically with scale points ranging from five to nine. It is an appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good, moderate, and poor performance. Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employee‘s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

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Career Planning At Godrej & Boyce: Raising the Performance Bar

Mumbai: : Godrej & Boyce Mfg Co Ltd is in the process of implementing a

career planning model to link growth, competency development and

remuneration planning to consistent performance, according to Ms Vibha

Anoop, manager (HR), Godrej & Boyce Mfg Co Ltd.

According to Ms Pooja Saxena, assistant manager (personnel) Godrej &

Boyce : ―The design of the planning model is based on the

potential/performance matrix. Taking performance as the axis, all the

systems like performance management system (PMS) and performance

recognition and reward are designed in each and every component to

support the very basis.‖

For example, in PMS the company has bifurcated the salary into a couple of

components such as Performance Pay, Exceptional Pay and Base Pay.‖Now

this gives a lead to career planning and also retaining talent to be more

explicit,‖ she adds.

According to Ms Saxena: ―Performance Pay is the category of exceptional

pay, it only caters to people who... are high performers with high potential,

whereby career planning is essentially worked out on the potential-

performance matrix such as high performers, high potential, low performers,

low potential, high performer-high potential.‖

As per the career planning model, the company is working on a competency

development model which will be under three levels: generic, core and

technical.

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Informs Ms Saxena: ―We plan to start work with the generic competencies

first which would form the basic platform of promotions, upgradations and

recruitment, among others. Then at the later stages, the core and technical

competencies would be worked out. These competencies would be in a

matrix form merging horizontally as per the job requirement and vertically

as per the requirement of the hierarchical level.‖

According to the company, the career planning model is linked to the

business strategy by means of strategic seminars facilitated by an external

consultant wherein the top team identifies the mission of the company and

dovetails the vision and strategy fallout absorbing the essence of the

organisational values.

In an effort to enhance participation, says Ms Saxena: ―There is an

involvement of line managers in various change management initiatives right

from design to implementation. This process enables a modern yet value-

driven, performance and leadership culture.‖

As a methodology in organisational restructuring, Ms Saxena informs that

the company has made an effort to align businesses with similar customer

segments. All the businesses were broken up into two product groups—

―Office and Consumer products group ― and ―Industrial Product groups‖.

Also all the support services were brought under one group. The purpose is

to provide single point of purchase for the customer and consumer

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Awards

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Bibliography

INTERNET WEBSITES:

www.google.com

www.wikipedia.com

www.autherstream.com

www.sl ideshare.com

www.godrej .com

www.sl ideshare.ne t

www.scribd.com

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Conclusion

From this we conclude that Godrej‘s recutement process is fair and every

one has equal opportunity.

To get jobs in Godrej Group of Companies, it selection process is also

very good.

The Compensation management is very good because they provide

educational, medical and housing facilities to their employees.

The overall Human Resources Management of Godrej is very well

managed.