Vishal Mega Mart

Institute of Professional Education and Research

Trim-3 2011-2013 Assignment On

Human Resource Management
The response of the questions are not in the assignment the content are unable to fulfill the objective.4/10

INTRODUCTION

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he Retail Sector is the largest sector in India after agriculture, accounting for

over 10 per cent of the countrys GDP and around 8 per cent of the employment. India has the most unorganized retail market in the world. Most retailers of the unorganized retail market have their shop in the front and house at the back. The Retail Industry in India is today amongst the fastest growing industries with several players entering the market. Currently, the organized retail sector accounts for only 2 per cent indicating a huge potential market opportunity. India is being seen as most attractive market by retail investors from all over the world. Retail is clearly the sector that is poised to show the highest growth in the next five years. The sector is set for a revolution, as both the present players and new entrants are gearing up to explore the market. The present size of the organized retailing sector is approximately 3% and is expected to grow to 25-30% by the year 20112. There are about 350 new malls, 1600 supermarkets and 365 departmental stores currently under construction. Many players are coming up with huge investments, due to which the present 12 million mom-and-pop shops and kirana stores fear losing their business. Most predictions say that the sector might reach to US$ 400-600 billion by the year 20112 Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready to enter the retail markets. The rising demands of branded products and increase in purchasing power have lured these companies to enter the market. Modern retail development in India is focused on the cities like Mumbai, Pune, Ahmedabad, Delhi and the National Capital Region, Chennai, Bangalore, Hyderabad, Kolkata. The leading Indian retailers are Bata India Ltd, Big Bazaar, Crossword, Vishal Mega Mart., Food Bazaar, Globus Stores Pvt. Ltd., Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloons Retail India Ltd., Shoppers Stop, Subhiksha, Titan Industries etc.

Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top

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five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population). Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Wal-Mart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30 percent of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores.

{source- http://en.wikipedia.org/wiki/Retailing_in_India}

HUMAN RESOURCES MANAGEMENT

OBJECTIVES:3

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To study how the company manages its human resource.

To try and understand the recruitment and selection process, various training, induction and development programs for its employees.

To know the separation policies followed

To understand the appraisal process.

Human-Resource policies followed by organization.

To understand the management organization system.

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uman Resource Management (HRM) means employing people,

developing their resources, utilizing maintaining and compensating their services in tune with the job and organizational requirement. The industry needs skilled manpower to fit the diverse roles at the front-end and back-end of the new and complex retail formats. It is estimated that over 2.5 million jobs will be created in the retail sector by 2010. The complexity of the operations requires trained personnel. The modern formats require staff to handle administration, public relations, advertising, store management, sourcing, and merchandising and information management. A number of reputed institutes have started offering specialized courses in retail management. The Company places a huge emphasis on encouraging a culture of innovation and enterprise that allows people within the Company to realize human beings' infinite potential. The Company continues to increasingly focus on internal growth and development of its associates, cutting across levels and functions, through focused developmental efforts and growth opportunities . For the year under review, the Company has provided 66 hours of training per associate. Apart from regular training in skills enhancement and customer engagement, the Company also emphasizes on building a sense of pride, belonging and self-confidence among its employees working at the stores. It has been able to employ innovative strategies to attract talent from other industries. Their human resource policies are targeted at creating an engaged and motivated work force. They have a fairly young team with the average age of the organization being 26 years as on January 31, 2011. Managing a young team engaged in a service intensive business with largely repetitive work is one of the challenges that they face. Their human resource policies are aimed towards creating a skilled and motivated work force. VRPL (VISHAL RETAIL PRIVATE LIMITED) have around 7000 employees both employed in their stores as well as in their manufacturing units and other facilities, as on September 30, 2006. They provide a conducive work atmosphere and opportunities for their employees to learn and grow. The following table provides a classification of VRPL (VISHAL RETAIL PRIVATE LIMITED) employees on the basis of their age and education. 5

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VISHAL RETAIL PRIVATE LIMITED Age No. of Employees 18-24 25-35 Total 4,093 2,013 6,938

VISHAL RETAIL PRIVATE LIMITED (KOLAR ROAD BHOPAL) Age No. of Employees 18-24 25-35 Total 11 7 22

35 and above 832

35 and above 4

Education No. of Employees Under Graduates Graduates Post Graduates Total 4,440 2,081 417 6,938

Education No. of Employees Under Graduates Graduates Post Graduates Total 8 9 5 22

ANALYSIS

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Human Resource Information System

he HR system is to deal with the manpower and the culture in the

organization. The system in general includes recruitment, training, attendance & wages, leaves and policies for discipline. HR is to maintain the all related to manpower starting from recruitment to their exit. The information of all employs starting from his/her joining should be made available with HR.

Compensation and Performance Based Incentives

VRPL (VISHAL RETAIL PRIVATE LIMITED)s compensation policy is performance based and they believe it is competitive with industry standards in India. VRPL (VISHAL RETAIL PRIVATE LIMITED) work to recognize talent and potential in their employees and encourage them to take additional responsibilities. Based on performance, VRPL (VISHAL RETAIL PRIVATE LIMITED) calibrate their employees and reward loyalty by preferring in-house promotions. Their compensation policy reflects their continuing efforts to build a world class performance driven culture. They benchmark us on compensation externally through consultants biannually, Variable pay is an important component of total compensation, with all their associates covered under their Profit Linked Reward Scheme (PLRS), linking individual performance and Company profitability . Their part-time and full-time employees are eligible for PLRS. Almost 60% of Customer Care Associates earned PLRS in the year ended March 31, 2010. They also have Employee Stock Option Plans (ESOPs).

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Training
VRPL (VISHAL RETAIL PRIVATE LIMITED) encourage their employees to be enterprising and expect them to learn on the job and contribute constructively to their business, either through ideas, personal networks or effective knowledge management. In essence, they train their employees to become next generation entrepreneurs, who can effectively lead the growth of their business. Their corporate objective is to provide every associate with an average of 5 man days of training per annum through internal and external resources. All senior management members are required to contribute 30 hours per annum towards training.

Recruitment & Selection

Following are important components of recruitment: Well defined policies. A separate cell for recruitment. Defined procedure for identification of talents. Qualification measurement. Screening & interviews procedure. Personality assessment. Job role & expectation from the position. Trainings & growth plans. Well defined organ grams for respective positions. Measures of retention of people.

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For various posts following rounds takes place TEAM MEMBERS:

1. 2. 3.

Psychometric tests, Behavioral Intelligence Test, Logical thinking and Comprehension Test. Application blank. Personal Interview, Operations Interview, Regional Manager Interview.

BRANCH MANAGER 1. Experience. 2. Communication skills 3. Personal interview with area manager

AREA MANAGER:

1. 2. 3.

Collection & review of curriculum vitae Personal interview with Regional HR Manager Personal interview with GM- HR

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Induction
The induction includes the following: HR induction Safety induction On the job induction

Induction process of VRPL (VISHAL RETAIL PRIVATE LIMITED) will cover the employer and employee rights and the terms and conditions of employment. As a priority the induction program must cover any legal and compliance requirements for working at the company and pay attention to the health and safety of the new employee. An induction programme is part of an our organizations knowledge management process and is intended to enable the new starter to become a useful, integrated member of the team, rather than being "thrown in at the deep end" without understanding how to do their job, or how their role fits in with the rest of the company.

Employee Mobility
Internal mobilitythe movement of employees from one position to another within a corporationis an efficient and cost-effective method of talent deployment. VRPL (VISHAL RETAIL PRIVATE LIMITED) successfully follows internal mobility program begins with a company clarifying its purpose and the business goals it seeks to accomplish with an internal mobility initiative. Eligibility of an existing employee for an internal redeployment is: 1. Satisfactory performance reviews and 10

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2. Minimum time in a position (80%), Considering request of an employee and depending the business need, internal opportunities can be considered in VRPL (VISHAL RETAIL PRIVATE LIMITED). Once the proposal is acceptable, the manpower is readjusted and placed accordingly at appropriate place

Appraisal
This is beneficial for both the professional as well as for the company and it is an approach to retain the talent in the company. To strengthen the talents of the people, VRPL (Vishal Retail Private Limited) focuses for special trainings for knowledge upgradation of the personnel to improve their skills to take up higher responsibilities Appraisals will 1. adhere to the principles of equal opportunities and confidentiality, and ensure fair and equitable involvement 2. utilize the experience gained by staff through their work, in order to help the Association to develop and implement its strategic plan 3. identify training needs 4. review performance 5. determine mutually agreed performance targets for the year ahead

The Appraisal Discussion

The appraisal discussion will allow an opportunity for both the appraisee, and the appraiser to reflect and comment on the previous years achievements. It will praise achievement and encourage the appraise in his/her role. The appraiser is accountable for giving the employee constructive, timely and honest appraisals of their performance, which should take into account both the goals of the organization and of the individual. The discussion should be a positive dialogue, and will focus on assisting the appraisee to acquire the relevant knowledge, skills and competencies to perform his/her current role to the best of his/her abilities. The appropriate forms will be completed and 11

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signed by both parties. The appraisee will be given the opportunity to note any comments that he/she does not agree with and complete a self-assessment. The appraisee and line manager should agree on a Personal Development plan for the appraisee for the following year. This will reflect the appraisees aspirations and the organizations requirements, and should align personal and organizational goals. The organization and the line manager will support the individual to achieve these goals during the forthcoming year. Any training needs, future training requirements, planned qualifications, development opportunities and career planning should be discussed in the light of the Personal Development Plan.

Training and Monitoring

Senior Management are responsible for the appraisal process, and he/she shall ensure that appraisers and appraises are adequately equipped and trained to undertake the performance appraisal.

Separation VRPL (VISHAL RETAIL PRIVATE LIMITED) Separation Policy Procedure implements handling methods for all aspects of an employee resignation or termination.
Activities Covered in the Separation Policy Procedure 1. 2. 3. 4. 5. Resignations Involuntary Terminations and Layoffs Terminations for Cause Terminating Meeting Additional Information Resources

The salient features of Vishal Mega Mart staff are: -

Well-trained

staff, the staff employed by Vishal Mega Mart is well-suited for modern 12

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retail.

Well-dressed staff improves the overall appearance of store. Employees are motivated to think out-of-the-box. Retail sector is in growth stage, so staff
is empowered to take innovative steps.

Multiple counters for billing, staff at store to keep baggage and security guards at every
gate, makes for a customer-friendly atmosphere.

The employees are motivated to work efficiently and effectively towards the achievement
of organizational goal by satisfying their personal needs.

The employees were given bonus and gifts during the festivals like Diwali, etc.
Management Organization Structure (Vishal Mega Mart)

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Management Organization Structure (Vishal Mega Mart)

(Kolar Road Bhopal)

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Process Of Collecting Information

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o When we contacted Vishal Mega Mart MP Nagar and Kolar Road then we found out that HR policies of Vishal Mega Mart are made by top management which is situated in Delhi.

o Then we contacted Branch Manager of Kolar Road branch for basic information regarding this organization. o For HR information we visited the web page of this organization http://www.vishalmegamart.net/ o But there was a problem in this site as there was an updation going on this site from last 1 month o There is a customer care no and email given on the home page of this site. o I contacted that customer care number and after some minutes got connected with the customer executive o After explaining all the basic things about assignment he connected me with the area manager and then he connected me with the Delhi Head-office and from there I gained all the information. o I have mailed the questionnaire at the time of my conversation and collected all the information telephonically.

QUESTIONAIRE

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Name _______________________ Age-_____years Gender- Male Female

Designation-___________ Experience- ____years Note- please tick the box for answer Q.1. Staff required in particular year for running a business? (a) 1-5 (b) 5-10 (c) 10- 20 (d) above 20

Q.2. Ratio of males and females in working staff? (a) 3-1 (b) 6-2 (c) 9-3 (d) 12-4 (e) any other specify

Q.3. Type of designation for employers?

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(a) Management Trainee (b) sales manager Business executives any other specify

Q.4. Any bond for employment duration? (a) Yes (b) No Q.5. Favourable age for recruitment? (a) 20-25 (b) 25-30 (c) 30-35 (d) above 35

Q.6. Number of recruitment process in a year? (a) 1 (b) 2 (c) 3 (d) 4 (e) more than 4

Q.7

Major Problem faced at the of recruitment? (Please specify)

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Q.8

Any particular strategy adopted for selection? (Please specify)

Q.9. Training process? (Please specify)

Q.10. Process for appraising employees? (Please specify)

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Q.11. Employee mobility and on what basis ?

Q.12. Any scheme/process followed for compensation strategies?

Q.13. Induction and its process?

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Q.15.Termination of Job? And if voluntary separation from employee?

CONCLUSION
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After this organization visit in VRPL (VISHAL RETAIL PRIVATE LIMITED) (Vishal Retail Private Limited) we came to know about the Human resource system which is followed in this Company and how its been followed, the process, the role of HR manager, the importance of human resource in the organization and to achieve these goals, the company needs a talented HR department. Besides hiring the right people to manage and perform specific jobs, HR managers have to build up commitment and loyalty among the workforce by keeping them up to date about company plans, and laying out the implications for job security and working conditions. The strength of any successful company is the HR department, and without a talented group of people to hire, culture, and inform employees, the company is doomed for failure. I would like to thank our professor AMIT TIWARI SIR and IPER College, who has given us this opportunity to do organization visit and to learn and to know about the importance of human resource in the organization.

Thank You

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