Professional Documents
Culture Documents
TABLE OF CONTENT
CHAPTER 1
Challenges in Modern Human Resource Management
1. Executive Summary
CHAPTER 2
2. Objective of the project
CHAPTER 3
3. Challenges in Modern Human Resource Management
4. Challenges of HRM in Indian IT industry
5. Tata Consultancy Services (TCS) and their HRM problems
6. Birla Soft and their HRM problems
CHAPTER 4
7. Challenges of HRM in Indian Tobacco industry
8. Indian Tobacco Company (ITC) and their HRM problems
9. Godfrey Phillips and their HRM problems
CHAPTER 5
10. Research Methodology
6. REFERENCES
7. ANNEXURES
EXECUTIVE SUMMARY
Challenges in Modern Human Resource Management
Tata Consultancy Services (TCS) is a truly global company. It starts its human resource
sourcing right at the college level. At these institutes, TCS funds many events conferences,
seminars, gets involved in improving curricula, establishes fellowships and exchanges
expertise through visiting faculty programme. To top all these there is the annual retreat
with over a hundred top academics in Thrivananthapuram, the training hub of TCS. TCS
extends its relationships to several universities abroad as well. All the spadework being
done, TCS finds it easy to hire the best talent in campus recruitment.
All major activities in the working life of a worker- from the time of his or her entry into n
organization until he or she leaves- come under the purview of HRM. With the passage of
time HR mangers have started speaking the language of business. HR job is highly
coveted one and so are the Hr practices that are becoming highly visible in the
organization. Its significance does lie not only in the observable practice of its functions,
but contributing to ad drawing from the highest level of managerial policy.
So, the challenges in the HRM practices are being visualized and are better explained
considering two different sectors of the Indian industries. For better evaluation we had
further taken two different companies from each sector. We had had telephonic
conversation with different companies. Its just for a evaluation purpose and so no further
comments on the policies and challenges had given till now.
It is a battle where we realize that the balance comes from a lot of sharing of common
chore, of sharing responsibilities and of sharing understanding most of all. The time
demand implementing rigid flexibility.
Challenges in Modern Human Resource Management
Globalisation:- Many Indian firms are compelled to think globally, something which is
difficult for managers who were accustomed to operate in vast sheltered markets with
minimal or no competition either from domestic or foreign firms. Indian firms need to
move from one end of each
continuum to the other
Rigid, hierarchical and end as shown below: Flexible, flat and
tall structure team based
structures
CHALLENGES IN TCS
Challenges in Modern Human Resource Management
1) THE MAINTAIN WORKFORCE DIVERSITY
The future success of any organizations relies on the ability to manage a diverse body of
talent that can bring innovative ideas, perspectives and views to their work. The challenge
and problems faced of workplace diversity can be turned into a strategic organizational
asset if an organization is able to capitalize on this melting pot of diverse talents. With the
mixture of talents of diverse cultural backgrounds, genders, ages and lifestyles, an
organization can respond to business opportunities more rapidly and creatively, especially
in the global arena (Cox, 1993), which must be one of the important organizational goals
to be attained. More importantly, if the organizational environment does not support
diversity broadly, one risks losing talent to competitors
Since TCS has offices in more than 40 countries, the challange for hrm is to maintain the
proper ratio between foreign and indian origin employees.
3) LARGE WORKFORCE
There is a big challenge of maintaining large work force consisting of 1.3 Lac employees
for TCS.
4) MANAGING EIS As
information is the basis of decision-making in an organization, there lies a great need for effective
managerial control. A good control system would ensure the communication of the right information at
the right time and relayed to the right people to take prompt actions.
When managing an Executive Information System, a HR manager must first find out exactly what
information decision-makers would like to have available in the field of human resource management,
and then to include it in the EIS. This is because having people simply use an EIS that lacks critical
information is of no value-add to the organization. In addition, the manager must ensure that the use of
information technology has to be brought into alignment with strategic business goals.
The challenge which HR is facing is that how to motivate employee without any
significant salary hike or promotion.
Birlasoft is part of the global $1.4 billion CK Birla Group which traces its roots back to
over 150 years and has diversified interests ranging from automobiles, cement, paper,
software etc. to hospitals, schools and colleges as part of its philanthropic work.
The company is a joint venture of CK Birla Group of India and Computer Horizons
Corporation (CHC) of USA. It is leading Information Technology company with offices
world-wide. It offers high class solutions and offshore services to its clients that includes
companies like AT & T, P&O Containers, Merrill Lynch, ICL, Oracle Corporation, Ford,
IBM, Network Managers, Shawn Ice, Saudi Aramco, DDA, NEI, BMBHRC, ET &T, C-
DAC. In the year 1999 it has rated as the third fastest growing software companies of
India by Dataquest of India, Magazine.
CHALLENGES IN BIRLASOFT
1. Communication
Focusing on establishing effective communication throughout the organization and
to ensure that Birlasoftians have the skills and avenues to share information and
coordinate activities effectively.
2. PerformanceManagement
Driving the organizations and its members progress by establishing objectives
related to committed work against which performance can be measured, ascertain
capability development assistance required to continuously enhance performance.
3. CompetencyDevelopment
This starts with identification of requisite competencies at the organization level
which are ultimately dependent on competencies that are needed to be identified,
built or enhanced in the individual Birlasoftian. Enhancing constantly the capability
of Birlasoftians to perform assigned tasks and responsibility in turn uplinks to the
organization capability building.
4. Training and Development
To ensure that the identified competency requirements are built through a systematic
and focused approach.
Challenges in Modern Human Resource Management
5. Compensation
To provide all individuals with remuneration and benefits based on their
contribution and value to the organization in a fair and transparent manner.
Competitiveness of the compensation offered in comparison with the prevailing
markets' reality is the driving force.
6. Career Development
To ensure that individuals are provided opportunities to develop their competencies
that enable them to achieve professional and personal career objectives within the
organizations goals.
7. Participatory Culture
A myopic outlook of utilizing talents of people only in the delivery of assigned
duties has two broad undesirable effects: It prevents people from developing as well
rounded professionals; and it denies the organization the readily available multi-
talented internal resource pool that could potentially contribute to most of the
challenges and opportunities facing the organization. Building a participatory
culture enables availability of avenues to harness/give exposure to employees full
capability by involvement in making decisions and solving problems that affect the
performance of business activities
Company Profile
ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 13
billion and a turnover of US $ 3.5 billion. Rated among the World's Best Big Companies by Forbes
magazine and among India's Most Respected Companies by BusinessWorld, ITC ranks third in pre-tax
profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.
History
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India
Limited. Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses
ITC's Packaging & Printing Business Division, was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business In 1975 the Company launched its Hotels business with the acquisition of a
hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'.
Products
CIGARETTES
Wills, Insignia, India Kings, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol, Flake.
FOODS
Ready to eat foods, staples, confectionery and snacks.
LIFESTYLE RETAILING
Wills Classic work wear, Wills Clublife evening wear, Wills sports wear.
GREETING, GIFTING AND STATIONARY
Expressions greeting cards, autograph books, slam books, party invitations, pop up & mini books,
Expressions Regalia(collection of premium greeting cards & social cause cards and desk calendars)
Challenges in Modern Human Resource Management
Market Share
ITC has captured a market share of 8%.
In confectionery, ITC has built up a 17% share of mint candies and 24% of hard-boiled candies
Ready-to-eat Sunfeast Pasta Treat has clocked 6% of the branded noodles
Indian tobacco acts amendement 2003.
Cigarettes Act is passed with first statutory health warning, 1975
States like Delhi, Goa and a few more had created their own tobacco control laws
Kerala High Court and Supreme Court had given momentous decisions in favour of tobacco control
policies
Prevention and Control of Pollution Act included smoking in the definition of air pollution, Motor
Vehicles Act of 1988 made it illegal to smoke in a public vehicle and Cables Television Network
Amendment Act of 2000 prohibited the transmission of tobacco commercials on cable TV across the
country.
The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and
Commerce, Production, Supply and Distribution) Act, 2003 (COTPA), a comprehensive tobacco control
legislation, comes into force on 1st May 2004
India ratified FCTC on 5th February 2004.
According to the telephonic conversation we had with Mr. Udit Gujarati (hyphothicated),
the answers to some of our questions we had asked from him
Ques 1. How long have you been associated to the company?
Ans. I am associated with the company with last 7 years, and has seen many ups & down
in my life period. The company has been very good in performance appraisal and I got
many rewards in this tenure. There are some special certifications which only I have, and
thats because of my interest that the company has sent me for the training. I got many
offers from many companies, which were better in monetary terms, but I had not gone
with them. The policies of the company had made a type of family relationship that cant
be broken anyhow. Even if I may not be associated with the company my heart would
remain here.
Ques 2. How many employees are working under you?
Ans. I am Sales Manager with 3 area sales manager under me with approximately a pool
of 44 people under.
Ques 3. What challenges you are facing due to stringency in govt. policies?
Ans. There is decrease in sales of the company, when we compare the statistics of the
companys sales with the past years; there has been a tremendous decrease in the sales of
the cigarettes and cigars. With decreasing profits, and increasing pressure due to govt
policies, we had to pressurise our employees to increase the sales. This in turn is
increasing the attrition rate of the employees. Hence, the company is trying to retain their
old employees by motivating them and giving them appraisals.
Ques 4.In what way attrition is affecting the company?
Ans. With the strict policies and increased attrition, we have to recruit new employees, and
hence provide them with training and knowledge of our products. With this, we have to
Challenges in Modern Human Resource Management
spend a major part of our budget on their training and development, which is affecting the
companys profits.
Ques 5.What is the basic criteria of recruiting new employees?
Ans. We dont have any such particular policy for any recruitment and it is according to
the post and the recruitment we had for the particular post. The decision is taken by
experts at the time of need and normally we go to different consultancies.
Ques 6. What methods have been adopted by your company to retain your old employees?
Ans. We dont have to do anything special to retain our old employees. They are very
happy here and they dont want to leave the company. Even though we have many
Schemes and different activities running in our company that make the employees not to
leave the company.
Ques 7. What kind of motivation policies your company has adopted?
Ans. The company is motivating the employees by providing them tangible and intangible
benefits, in the form of appraisals, bonuses, best performers, gifts on festivals, pension
policies for old employees, health benefits, rewards and incentives.
Ques 8.In this LIQUIDITY CRUNCH we have seen the recruitment been frozen, how
does your company manage recruitment and selection process?
Ans. Currently we are not giving any such call for new recruitments. We have enough
employees to work and will definitely announce for recruitment if we will require so. The
crunch has not impacted us too much.
Company Profile
Godfrey Phillips is today the second largest player in the Indian cigarette industry with an annual turnover
of over US$ 265 million. The company was incorporated in India in 1936, the Company established its
own manufacturing facilities in 1944. The Company today is the proud owner of some of the most
popular cigarette brands in the country like Red and White, Four Square, Jaisalmer, Cavanders, Tipper
and Prince.Its products are distributed through an extensive India wide network comprising 484 exclusive
distributors and over 800,000 retail outlets
History
1844 - Mr. Godfrey Phillips, founder of Godfrey Phillips & Sons commenced business in the Barbican
(London), as a Cigar manufacturer
1944 - Company established its own manufacturing facilities
1946 - GODFREY PHILLIPS became a Public Ltd. Co. with its manufacturing operations in Mumbai
1967 - D. Macropolo & Co., which was the sole selling agent for GODFREY PHILLIPS, opened a
subsidiary company called "International Tobacco Co.",
1967-68 - Philip Morris acquired substantial holding in Godfrey Phillips Ltd
1979 - Philip Morris. joined hands with the K.K. Modi Group and in the following year the Modi
Enterprises took over the management of GODFREY PHILLIPS
2002 - The Company re-launch some of its brands, by giving them an entirely new look & positioning,
while some new, innovative products like Tipper & Piper were also introduced
2003 - Jaisalmer & Prince re-launched
Cigarette brands
Four Square, Jaisalmer, Red & White, Cavanders, Tipper, North Pole, Prince.
Cigars - Brands
Don Diego, Hav-a-tampa, Phillies, Santa Damiana H-2000 Rothschild.
According to the telephonic conversation we had with Mr. Udit Gujarati (hyphothicated),
the answers to some of our questions we had asked from him
Ques 1. How long have you been associated to the company?
Ans. I am working in GODFREY PHILIP since 6 years as one of the most loyal
employees. The company stands second in the market share of the cigarette products. I
have seen the progress of the company with the increase in sales over a period of time and
Challenges in Modern Human Resource Management
the expansion of the company, with the production of candies and chocolate as the latest
introductory offers and many other such projects that are in the pipeline.
Ques 2. How many employees are working under you?
Ans. I am the area sales manager of the company. I have a workforce of 23 employees
who are reporting me on daily basis.
Ques 3. What challenges you are facing due to stringency in govt. policies?
Ans. The govt. has made some amendments in the INDIAN TOBACCO ACT 1975 with
special reference to advertising, smoking in public places, selling to and by minors and 10
to 15% decrease in land allotted for cultivating tobacco. With this coming into effect, there
has been a considerable downfall in sales of cigarettes and related products. The company
has to switch to other alternative fields like consumer goods, and with these developments,
the employee workforce has to be recruited and thoroughly trained in their specific
departments. Also, the company has changed the working platforms of its employees who
are working in production department; hence a major challenge is to plan the management
of the workforce.
Ques 4.What is the basic criteria of recruiting new employees?
Ans. The employee are recruited for various posts and selected on the basis of their areas
of expertise. Those employees having work experience in related job-work is given
preference. The recruitment is done by a step wise with following steps.
1. Preliminary interview
2. Selection tests
3. Final interview
4. Reference checks.
After going through these steps, if the employee fulfils all the criterias, then the
employees are recruited.
Ques 5. What methods have been adopted by your company to retain your old employees?
Ans. Some of the employees have been shifted to other platforms by training them about
the new production methods. Along with this the employees are motivated to outperform
in their respective departments. The old employees are given the option of pension
schemes on retirement.
Ques 6. What other motivation policies your company has adopted?
Ans. The company motivates the employees by providing with gifts and rewards, and
bonuses on quarterly basis. Also the best performing employee is being rewarded a tour to
MALAYSIA along with his family. Also the managers seek to provide specific attention to
employees by meeting them once in every month. The company follows the process of
Challenges in Modern Human Resource Management
self-appraisal in which the employee can fill in the form and send it to the department
depending upon his/her own performance.
Ques 7.In this LIQUIDITY CRUNCH we have seen the recruitment been frozen, how
does your company manage recruitment and selection process?
Ans. The way the liquidity crunch has banged the countrys backbone, same way it has
also affected our company too. But our company has sustained various such disasters, and
during these tough times, our country will emerge as the winner. Since the company is
expanding into new ventures and launching new products, hence company has to recruit
new employees. There is a lot of investment in the recruiting and training process, but it is
a part of the strategy that has to be followed.
CHALLENGES IN BIRLASOFT
1. Communication
Focusing on establishing effective communication throughout the organization and
to ensure that Birlasoftians have the skills and avenues to share information and
coordinate activities effectively.
2. Performance Management
Driving the organizations and its members progress by establishing objectives
related to committed work against which performance can be measured, ascertain
capability development assistance required to continuously enhance performance.
3. Competency Development
This starts with identification of requisite competencies at the organization level
which are ultimately dependent on competencies that are needed to be identified,
built or enhanced in the individual Birlasoftian. Enhancing constantly the capability
of Birlasoftians to perform assigned tasks and responsibility in turn uplinks to the
organization capability building.
4. Training and Development
To ensure that the identified competency requirements are built through a systematic
and focused approach.
5. Compensation
To provide all individuals with remuneration and benefits based on their
contribution and value to the organization in a fair and transparent manner.
Competitiveness of the compensation offered in comparison with the prevailing
markets' reality is the driving force.
6. Career Development
To ensure that individuals are provided opportunities to develop their competencies
that enable them to achieve professional and personal career objectives within the
organizations goals.
7. Participatory Culture
A myopic outlook of utilizing talents of people only in the delivery of assigned
duties has two broad undesirable effects: It prevents people from developing as well
rounded professionals; and it denies the organization the readily available multi-
talented internal resource pool that could potentially contribute to most of the
challenges and opportunities facing the organization. Building a participatory
Challenges in Modern Human Resource Management
culture enables availability of avenues to harness/give exposure to employees full
capability by involvement in making decisions and solving problems that affect the
performance of business activities
METHODOLOGY
Challenges in Modern Human Resource Management
BLUE PRINT OF THE PROJECT
COMPOSITION
Opinions were collected by interviewing the
experts.
CONSOLIDATION
All the opinions were consolidated in terms of
commonality.
CONFIGURATION
Research questions were formulated on the basis
of opinions
Challenges in Modern Human Resource Management
REFERENCES:
Beer, M. (1997), The transformation of the human resource function: resolving the
tension between a traditional administrative and a new strategic role, Human Resource
Management, Vol. 36 No. 1, pp. 49-56.
ANNEXURE
Challenges in Modern Human Resource Management
Ques 1. How long have you been associated to the company?
Ques 3. What challenges you are facing due to stringency in govt. policies?
Ques 6. What methods have been adopted by your company to retain your old employees?
Ques 8. In this LIQUIDITY CRUNCH we have seen the recruitment been frozen, how does your
company manage recruitment and selection process?
Challenges in Modern Human Resource Management