MANGALORE UNIVERSITY, MANGALORE

St. Aloysius Institute of Management & Information Technology

A
PROJECT REPORT
On
Study of HR Practices & Process of Training &
Development

GRASIM INDUSTRIES LTD

KUMARAPATANAM

A report submitted in partial fulfilment of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

Submitted by: Mr. VINAY PRASAD L S

INTERNAL GUIDE

EXTERNAL GUIDE

Dr. BENNY GODWIN

MR.SUDARSHAN RAO

professor

General Manager

MBA Department

Grasim industries Ltd

AIMIT, Beeri

Kumarapatanam

ACKNOWLEDGEMENT
The euphoria and access of any project is incomplete without mentoring of people who made it
possible.
I am conscious of my indebtedness to each and every individual who has helped me in many
ways in the preparation of this dissertation. It would be my grate privilege to express a few words
of gratitude and respect to all who guided and inspired me throughout my organization study.
It gives me great pleasure to extend my thanks and gratitude to those who have been instrument
in the completion of the project.
I sincerely express deep sense of gratitude and appreciation to my internal guide Dr. Benny
Godmin, MBA program Aloysius institute of management and information technology,
Mangalore
I am grateful to Mr.Sudarshan Rao R, Grasim industries Ltd, Kumarapatnam External guide
for providing me the opportunity to undertake this organization study, without which this
organization study would not be possible.
Finally, I would like to thank my parents and friends for their constant encouragement and
support in completing this report.

DATE: 21 July - 2016

PLACE: HARIHAR

VINAY PRASAD L S

DECLARATION

I hereby declare that the Internship report is prepared based on organization study conducted by
me as organization study of Grasim industries Ltd, kumarapatnam under the guidance of
internal guide Dr Benny Godwin, faculty of M.B.A Department, AIMIT MBA Programme,
Aloysius Institute of Management and Information Technology and with the external assistance
by Mr. Sudarshan Rao R, Grasim industries Ltd, Kumarapatnam.

I also declare that this Internship work is towards the partial fulfilment of the university
regulations for the award of degree of Master of Business Administration by Mangalore
university.

I have undergone a summer project for a period of Two month. I further declare that this
Organization study is based on the original study undertaken by me and has not been submitted
for the award of any degree/diploma from any other University / Institution.

DATE:
PLACE: HARIHAR

SIGNATURE OF STUDENT
(VINAY PRASAD L S)

Table of Contents
CHAPTER NO.

TITLES

Executive Summary

Company Profile

Introduction

About the project

Training & Development

Learnings

Observations & Findings

Recommendations

Limitations & Bibliography

Executive SummaryThe importance of personnel management is being increasingly realized in industrial and nonindustrial organization both in India and abroad. The realization has come about because of
increasing complexity of the task of managers and administrators. In most organizations the
problems of getting the competent and relevant people, retaining them, keeping up their motivation
and morale, and helping them to both continuously grow and contribute their best to the
organizations, are now viewed as the most critical problems.

So with this reference the project titled Study of Study of HR practices

& Training &

Development has been conducted, based on the primary research poly fibers, Harihar Division has
been prepared to get a better insight into the management practices adopted by GRASIM with
reference to HR Policies prepared by the HR department in organization. It emphasizes on the
importance of a clear cut organization structure and culture to avoid any confusion in order to
achieve maximum result with minimum resources.
The project is aimed to cover maximum knowledge of the HR practices followed in the organization
and how the performance is evaluated of employees, what primary factors are considered , how data
is maintained and finally the evaluation done. Here the HR practices of the company have been
explained to understand how the company follows these practices and the performance appraisal
process adopted. The practical knowledge has been gained mainly by observing all the activities
taking place in the H.R. department. This is a brief study done to have understanding of the subject
H.R., how it is practically implemented, why it is necessary, its implications & the benefits.
With reference to the HR Practices brief knowledge has been gained how the Recruitment cycle
functions, Selection done, Training Calendar prepared, what does compensation & cost to company
means and the steps of performance appraisal.

COMPANY PROFILE
Mr Kumar Mangalam birla, chairman the Aditya birla group, the aditya birla group is Indians
first truly global corporation. Its 40 state of the art units, anchored by 72000 employees, cross 18
countries Including India, Thailand, Malaysia, Egypt, Canada, U.K, Australia, and china. Among
Indias largest business house, its revenue excess of US$ 5.8 billion, with an assets base of
$4.35billion , a market cap of over $3billion and 7000000 shareholders.
Out of all manmade silk industries, Grasim industries ltd, is one of the world recognized
industries, which has made a good name in producing the pulp and fibers to meet the high
changing requirements of the customers. This industry became a tough competitor to the cotton
industries, as fiber is a major substitute for cotton in the market. Though it is a private sector
industry, it has worldwide recognition.
The BIRLA GROUP incorporated Grasim industries ltd. In 1947 it is one of the largest rayon
grade pulp manufacturing units in India and it is only the one, which has an integration of both
pulp and fiber. The company has striving in foster a simple corporate philosophy that is to
constantly achieve excellence, which has judiciously and successfully make investment in core
sector for meeting the basic requirements.
After the demise of the great ADITYA BIRLA in 1955, the BIRLA GROUP was taken over by
his son, MR.KUMARAMANGALAM BIRLA. The group has grown into Indias second large
industrial house employing about 65,000 people worldwide. It has registered a turnover of more
than Rs 20,000 crores during 1997-98.
Grasim industries is owned and efficiently managed by ADITYA BIRLA GROUP. It consists or
more than 55 professionally managed large units enjoying the confidence of more than 6 lakh
shareholders.

The company has 2 divisions at Harihar unit..,

1. Harihar poly fibres (pulp divisions)
2. Grasiline divisions (fibre divisions)

Division
Harihar poly fibres
Grasiline division

Year
of Product
installation
1972
Wood pulp
1977
Sulphuric Acid
Carbon Di Sulphide
Viscose staple Fiber
Rayon Grade Pulp
Sodium Sulphate

Installed capacity
74,400 TPA
87600 TPA

HARIHAR POLYFIBERS:
HPF is a unit which was established in 1972. It is located on the bank of river Tungabhadra
Kumarapatanam near Harihar in Karnataka. This plant was set up in the year 1972 to produce
rayon grade pulp with indigenous know-how engineering and equipment. Rayon grade pulp is
the basic raw material used in the manufacture of viscose staple fiber.

GRASILINE DIVISION:
This plant was set up in the year 1977 to produce viscose staple fiber, sodium-sulphate sulphuric
acid carbon di sulphide. It has started producing VSF with indigenous technical knowhow i.e.,
with own engineering and equipment. Viscose staple fiber is the closet man-made substitute for
cotton, used in the manufacture of fabrics for common man.

VISION, MISSION, AND QUALITY POLICY:

VISION:
To be a leading customer-focused global chemicals business that delivers best in class products
and specially solution using safe, sustainable and innovative processes.
MISSION:
To deliver superior value to our customer, shareholder, employees and society at large. And
maintaining the largest share in the man-made cellulosic fiber industry globally through:
Innovation: in products and processes
Excellence: in quality, service, people development
Focus: on environment friendliness in all our activities

QUALITY POLICY:
To meet the needs and expectations of the customer of the customer through continuous
improvements in all spheres with active participation the people.
AIMS:

Excellent in all spheres of management

Knowledge integration programme
Skills development programme
Participation in management through consultation
System protection
Delegation and decentralization

Head HR

Recruitment

Org.

Zonal Coordinators

specialist

Development

North/East/West/South

Assistant

Poornat
a/MIS

MS/PM
S

Training
School
City HR/IR
& Safety

Introduction
HR PRACTICES
The success of any business depends as much on appropriate, effective, well-communicated, HR
and business practices as it depends on meeting the requirements of mandated laws and regulations.
In fact, good planning and the development of effective practices make regulatory compliance much
easier.
HR practices helps in increasing the productivity and quality, and to gain the competitive advantage
of a workforce strategically aligned with the organizations goals and objectives.

KPI's For HR PRACTICES

Some of the key performance indicators for Human Resources include but are not limited to the
following.
Employees clarity on HR policies
Employees clarity on roles, responsibilities and expectations
Development of qualitative staff
Number of HR issues arising for which there are no clear policies and guidelines
Competitiveness of compensation structure relative to industry benchmark
Usefulness and accuracy of compensation survey
Lead time to respond to staff welfare issues
Employees assessment of promotion criteria and process (clarity, fairness)
Measurement of HR policy violation
Average time required to fill vacancies
Proportion of training programs resulting in productivity improvement
Staff attrition rate
Understanding / Clarity of the Organizational philosophy
Outline Internal capabilities and identify gaps on skills-competencies-behavioral aspects
Prepare HR strategic Objectives and bring in clarity as to how the HR strategy supports the
organizational strategy

 Develop KPI's for each of the strategic objectives.

Track and measure performance

Human Resources Best Practices

The best practices in the management of human resources are the ones which optimize a workforce
so that it can not only get work done, but also ensure a greater level of efficiency, timeliness and
quality as it accomplishes increases productivity overall.
Hence the job of the best practices human resources firm is to make sure that these benefits and pay
scales meet the companys budget while remaining attractive and competitive enough to pull in the
very best talent possible. We should know that these figures put the company in a good light while
also presenting themselves as engaging and competitive for companys recruitment efforts.
OBJECTIVE OF HR PRACTICES:The main objective of HR Practices is to differentiate the organization from its competitors by
effective and efficient HR Practices. By following this, the organization does its whole work process.
The objective of HR Practices is to increase productivity and quality, and to gain the competitive
advantage of a workforce strategically aligned with the organizations goals and objectives.
As The Transparent HR practices can reduce attrition, BecauseTransparent HR practices ensure continuous business growth in every organization.
It gives the suitable working environment to the employees.
The success of company motivates the employees of organization to continue relationship with
it. As all the employees Perks chart has been mentioned according to their designation in the HR
practices, it helps the employees to know what their perks charts are. So it creates a transparency.

OBJECTIVE of the PROJECT

As we know the whole function of HR department depends upon the HR Practices of the
organization. The HR management is done according to the HR Practices of the company. Which
things to be done and which things should not be done depend upon this only. It also helps the
organization to achieve the target of the organization.

The HR policies of the organization have been mentioned in the HR Practices. All the rules &
regulations for the employees have been also mentioned in this. All the welfare of the employees
processes is also mentioned in this.

So the study of the HR Practices means basically the brief study of all HR functions in the
organization. I believe the HR Practices is a vital part of an organization, which helps the
organization to achieve the goal of the organization.

All companies are having their HR Practices but the company who is having the best, is the most
successful company among its competitors. So the company can get success within its competitors
by applying best, effective HR Practices.

The main objective of the project is

To understand the HR practices followed & Process of training & development.

To know what are the uses of HR practices for any organization.
How these HR Practices help any organization to know its stand in the market and to be
competitive by implementing good HR Practices for their employees.
To understand how the organization would achieve its goals by implementing good HR Practices.
To understand the work culture of the organization.

HR function is very important in every organization. It helps the organization to manage not only
the people of the organization but to manage all the working processes in it also. HR is management
function that helps managers to recruit, select, train and develop members for an organization.

Obviously HR is concerned with the peoples dimensions in organizations. HR refers to set of

programs, functions, and activities designed and carried out.

Training and Development

The needs of individual are objectively identified & necessary interventions are planned for
identified groups, which get rolled out in a phased manner through training calendar.
The training and development program is charted out to cover the number of trainees, existing staff
etc. The programs also cover the identification of resource personnel for conducting development
program, frequency of training and development programs and budget allocation. Training and
development programs can also be designed depending upon job requirement and analysis. Selection
of trainees is also facilitated by job analysis.
The company has a strong focus on manpower training according to their requirements. The internal
training department aims at improving the skill sets relevant to the work profile of employees.
This includes improving communication
Different skills
E-mail programming
Operation systems.
The design of the training program can be undertaken only when a clear training objective has been
produced. The training objective clears what goal has to be achieved by the end of training program
i.e. what the trainees are expected to be able to do at the end of their training. Training objectives
assist trainers to design the training program.

Training DesignThe trainer Before starting a training program, a trainer analyzes his technical, interpersonal,
judgmental skills in order to deliver quality content to trainers.
The trainees A good training design requires close scrutiny of the trainees and their profiles.

Age, experience, needs and expectations of the trainees are some of the important factors that
affect training design.
Training climate A good training climate comprises of ambience, tone, feelings, positive
perception for training program, etc.
Trainees learning style The learning style, age, experience, educational background of trainees
must be kept in mind in order to get the right pitch to the design of the program.
Training strategies Once the training objective has been identified, the trainer translates it into
specific training areas and modules. The trainer prepares the priority list of about what must be
included, what could be included.
Training topics After formulating a strategy, trainer decides upon the content to be delivered.
Trainers break the content into headings, topics and ad modules. These topics and modules are
then classified into information, knowledge, skills, and attitudes.
Sequence the contents Contents are then sequenced in a following manner:
From simple to complex
Topics are arranged in terms of their relative importance
From known to unknown
From specific to general
Dependent relationship
Training tactics Once the objectives and the strategy of the training program becomes clear,
trainer comes in the position to select most appropriate tactics or methods or techniques. The
method selection depends on the following factors:
Trainees background
Time allocated
Style preference of trainer

 Level of competence of trainer

Availability of facilities and resources, etc

Improve performance
Training & Development is any attempt to improve current or future employee performance by
increasing an employees ability to perform through learning, usually by changing the employees
attitude or increasing his or her skills and knowledge.

Importance of Training & Development

Helps remove performance deficiencies in employees
Greater stability, flexibility and capacity for growth in an organization
Accidents, scraps and damages to machinery can be avoided
Serves as effective source of recruitment
It is an investment in HR with a promise of better returns in future
Reduces dissatisfaction, absenteeism, complaints and turnover of employees

Needs of Training
Individual level
Diagnosis of present problems and future challenges
Improve individual performance or fix up performance deficiency
Improve skills or knowledge or any other problem
To anticipate future skill-needs and prepare employee to handle more challenging tasks
To prepare for possible job transfers

Training given on
Safety aspects
Behavorial aspects
Technical aspects
Communication skills

Identification of Training Needs (Methods)

Individual Training Needs Identification
1.

Performance Appraisals

2.

Interviews

3.

Questionnaires

4.

Attitude Surveys

5.

Training Progress Feedback

6.

Work Sampling

7.

Rating Scales

Group Level Training Needs Identification

1.

Organizational Goals and Objectives

2.

Personnel / Skills Inventories

3.

Organizational Climate Indices

4.

Efficiency Indices

5.

Exit Interviews

6.

MBO / Work Planning Systems

7.

Quality Circles

8.

Customer Satisfaction Survey

9.

Analysis of Current and Anticipated Changes

Benefits of Training Needs Identification

1.

Trainers can be informed about the broader needs in advance

2.

Trainers Perception Gaps can be reduced between employees and their supervisors

3.

Trainers can design course inputs closer to the specific needs of the participants

4.

Diagnosis of causes of performance deficiencies can be done.

The different designations given to the employees in POLYFIBERS (HARIHAR Division) are given
in the following table.

Designation (s)
Jt. President /Jt. Exc. President
Sr. Vice President
Vice President
Asst. Vice President
Sr. General Manager / General Manager
Dy. General Manager
Sr. Manager
Manager
Dy. Manager
Asst. Manager
Sr. Engr. /Sr. Officer
Engineer / Officer
Asst. Engr. / Asst. Officer
Jr. Engr. /Jr. Officer
Sr. Supervisor
Supervisor
Support Staff

Human Resource Information System

POORNATA, an ERP (People soft) implementation of Human Resource practices has been
introduced in TRAINING & DEVELOPMENT to elevate HR processes to world class levels and
standardize them across Units and Businesses. This has resulted in single integrated HR-ERP for all
management cadre employees of the group. These automated HR Processes will also aid in faster,
efficient, timely and accurate data availability to Management for decision-making.
TRAINING & DEVELOPMENTs People Soft Enterprise Performance Management (EPM)
enables it to achieve world-class performance by aligning the right information and resources to
strategic objectives. People Soft EPM offers performance management solutions for every budget
and every phase of the management cycle, helping its managers to formulate strategies for profitable
growth, align strategies with operational plans, and actively monitor day-to-day operations.
Poornata helps a lot in the different works of the organization. It helps in the following ways
It helps in entry of all the database of all the employees.
It reduces time to note all the databases of the employees.
It reduces different mistakes or errors while maintaining the databases
It helps in doing performance appraisal of the employees.
It also helps in doing the data updation of the employees.
It helps in recruitment and selection of the employees
It reduces the time of the work
It also reduces the no of employees for maintaining the database.
It helps in maintaining the job description of employees.
It records the compensation details for the employee.

Poornata also helps the employees in this way,

Once the data of an employee entered in to Poornata (ERP), the employee gets a Poornata ID, which
helps the employees to know about the different policies of Organization.

They can know these policies directly from the ERP system.

As it done only through Online, there is no delay in getting different infomations.

It also helps them to do the reporting to the concerned person.

They can also fill their problems which they face during their work and send to their

departments.
In this way Poornata helps not only the managers but the employees also.
Poornata (ERP) helps TRAINING & DEVELOPMENT in the following ways
Poornata helps in performing day to day roles.
Introduction Poornata helps in creating and updating of the positions of the employees.
Each position will correspond to specific vacancy in the organization, have a specific headcount
defined for it and is also tied to the following specific attributes:
Business unit
Department
Company
Job code
Location
Regulatory Region
Job Function
Reporting to position (The position to which this particular position reports to)
Career stages

Every time one or more of the above attributes change, the same have to be updated for the position,
or a new position may need to be created corresponding to the new combination of the attributes.
Any individual who occupies a position will inherit the above-mentioned attributes of the position.
A position is thus specific and particular opening in the organization, as opposed to job codes, which
are more generic in nature. Job codes reflect the job points of the jobs across the organization,
whereas a position number reflects a specific job description in the organization.
Poornata helps and gives hints and warns the user the important information he must know about
the Poornata system.
It provides the additional information to assist the user & provide key information.
It also tells the frequently asked questions with respect to hiring employees.
It also shows the common error and warning messages that the user may get at the time of hiring.
It needs the information about regarding these:
Employee ID, Position Number, Job code (the job points of the employee), Company (The legal
entity to which an employee /department is attached.), The Business unit to which the employee
belongs to, Location (i.e. where the employee works), Department etc.
Following are the steps that will be used to maintain positions and department budgets
Creating new positions
Updating the information for existing positions as and when required
1. Creating a new position
A position corresponds to a specific vacancy in the organization. Hence a position should be created
in Poornata, only when a new vacancy has arisen in the organization, and the approval for the same
has been obtained offline.
Only after the offline approval has been obtained, should the position be created in the system, i.e.
only pre-approved positions should be entered in to the system.

2. Updating The information for existing positions

From time to time the user should update the information for an existing position.
Typical situations are when:
The position attributes or the approved max headcount for the position has changed.
The position no longer exists.
Organizational Restructuring.
Direct Hire Process:
It helps in doing the directly hiring an employee by Poornata system.
Introduction: The direct hiring process involves an employee being directly added to the Poornata
system that is the situation where his information doesnt exits as applicant in the Poornata system.
An employee on joining the group would fill up the joining check list and the related forms as per
the unit policy. The HR administrator would then hire him into the system by capturing his relevant
information with respect to his personal job compensation, qualifications and dependents
information.
The hire action will be used to capture the event of the employees joining the organization. There
can be either of two reasons for hire:
Joining the ABG: This will reflect the situation where an employee joins a unit of the ABG group
directly.
Joining the acquired company: This will reflect the situation where an employee had joined an
organization, which was subsequently acquired by ABG.
Going forward the action of joining the acquired company will be used to enter the data of those
employees from the non-management cadre moving into the management cadre who had originally
joined a company that was acquired by ABG.

The following information would be captured at the time of hiring the employee.
Personal information Name, address, NIN, DOB, gender marital status, religion / caste.
Job related information related to hiring, his position a related details.
Compensation information with respect to the break of his CTC
Recording personal actions for an employee
Introduction: Post hiring as the employee moves through the organization, there would be various
kinds of updation in the employee data. Broadly the processes that an employee could move through
in the course of his life cycle in the organization comprise:
Probation, followed by confirmation.
Promotion
Pay rate change
Transfer
Resignation
Termination
Separation /Retirement

KEY LEARNINGS FROM THE PROJECT

Firstly it was a very good experience to work and learn with a world class for two months as it
was my first step into the corporate world.
When I saw my senior people doing each & every kind of work I came to know how much
important is each & every work. Maintaining files in systematic manner with each & every detail is
very important, if not done it hinders the work whenever these are required for reference in medical
claim formalities, appraisal etc.
As I worked with the employees of HR department in the organization during the project they
shared their experience and learnings with me, which was a very good opportunity I got during my
project.
I learned different HR Policies of the organization which were unknown to me before entering to
the corporate world.
I also learned how much the values and culture of the organization impacts the employees
productivity. Like here the Seniors were approachable in nature, I felt an open culture.
Many a times I felt people are not open to new ideas and they are resistant to change.
I have gained some learning from every individual working here; it might be in terms of
knowledge, skills, behavior or personal traits etc.
I have learned many small, minute things by observations, being in the HR department for 2
months, which could not be learnt simply by reading books theoretically. The practical experience
was totally different.
I have also learnt that a HR person should be very polite, soft spoken & good in handling people.
Co-ordination with all departments is very necessary especially with Finance Department.

OBSERVATIONS AND FINDINGS

During the study of the project I observed different functions of the HR Department. I got
the knowledge about the different types of HR Policies functioning in the organization. I
also got knowledge about how the organization is following their values in a very sincere
way.

I learnt how and what types of facilities are being provided to the employees .

I also observed how they are doing the Performance Appraisal on basis of the achievement
of the targets by the employees in the time given to them through ERP.

I got the knowledge about different departments in a manufacturing company and idea
about the challenges what the employees are facing while performing their work.

As I worked on the ERP system of the organization, I came to know that how they are
maintaining the database of the employees for all departments region-wise & its
importance.

They emphasis on providing proper working environment to their employees, so that the
employees can work efficiently & smoothly .

RECOMMENDATIONS

The company should give the compensation as per to the skills, so that the employees could
do the efficient work.

Organizations must enhance work force motivation to improve productivity. Workers must
be encouraged and motivated to develop a customer satisfaction mind set.

Organizations need to empower their workers by allowing them greater autonomy and
control and to design jobs that are more stimulating. This will enhance the personal
productivity.

Interdependency of different departments should be well studied, co-ordinated for effective

output.

Training schedule is worked out well here with proper planning schedule.
Recruitment proper planned, structured according to openings in plant, new vacancies.

Goal Setting programs undertaken with schedule to find potential prospective employees for
higher posts, giving training, discussing the on job responsibilities.

The employee goals are well studied and structured. The Key Related Areas are properly
designed & clearly mentioned to employees.

Limitations
Time is major constraint The employees were too busy with their own schedule which gave
me not much information on what I really need to find out. No one was ready to give their time to
answer question, had to meet them as soon as they arrive at work or in the office bus while going
home.
Interaction with the respondents is also limited due to their work Since all the employees
had to complete their given tasks for the day, even going near them was not possible as their managers
were always around and questioning them becomes very difficult.

No access to other departments Those who work in the admin department do not get to access
the production or quality control department due to proper hygiene conditions. Interns were confined
only to a few areas.
Time for project was limited as, had to complete the tasks given by them Only a little
information could be conducted as I had to complete the tasks given to me and it would take all day
long to complete just a single task. The time given for the project was plenty, just didnt have time
solely for the project.
People refused to give feedback Getting feedback from the employees was very difficult as
they believed that its a waste of time and they had better things to do. No one was ready to even fill
up the questionnaires and return back. If employees were asked again and again the response gained
back would be negative on purpose.
Too many Interns in one company Since there were too many interns from other colleges it
was tough to gain information from the same employees as they were getting fed up giving the same
information more than twice. Had to race against them or come up with a different strategy or even
change my style to get information from the employees.

BIBILOGRAPHY
American Society for Training & Development. (2008). State of the Industry Report.
Baldwin, T. and J. Ford. (1988). Transfer of Training: A Review and Directions for Future
Research. Personnel Psychology, 41, 63-105.

WEBSITES
https://en.wikipedia.org/wiki/Aditya_Birla_Group
www.adityabirla.com