A Study of Hr Practice Essay Example

A Study of Hr Practice Essay On A Study of HR Practices in ITC Submitted in partial fulfillment of the requirement for the award of degree Of Master of Business Administration OF [pic] ITC Ghaziabad [pic] SESSION 2009 Submitted by: Raibahadur Singh Parihar Under the guidance of: MR. Ravi karan singh Contents 1. Declaration 2. Acknowledgement 3. Preamble 4. Objective 5. Certification of ITC 6. Policies of ITC 7. Company profile 8. Growth history 9. SWOT Analysis 10. ITC Philosophy 11. HR Management 12. HR Practices at ITC 13. Action Plan 14. Graphical representation of data 15. Research Methodology 16. Questionnaire 7. Results Conclusion 18. Suggestion DECLARATION This project report on â€Å"a study of HR practices in ITC† in ITC Ghaziabad is submitted by me for the partial fulfillment of the course of M. B. A from Sikkim Manipal University. This is an original work done by me expected the guidance received which has been properly acknowledgement in the report. This is not the copy of any other report or any part of it hasn’t been submitted for the award of any degree or diploma. Raibahadur Singh Parihar Sikkim Manipal University ACKNOWLEDGEMENT I would like to express my gratitude towards Mr. Ravi Karan Singh for the valuable guidance, supervision and keen interest in study, progress and completion of this project. I would like to acknowledge the precious contribution General Manager H. R. who had been in continuous support through out the training period. I am also graceful to our faculty member Mr. Vishal whose precious guidance throughout the session has been of undaunted help to us in grooming our self and without which this work wasnt possible. I am also thankful to my friend Mr. Nitin Shukla (Senior HR Executive) whose help has given this shape to the report. We will write a custom essay sample on A Study of Hr Practice specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on A Study of Hr Practice specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on A Study of Hr Practice specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Submitted by Raibahadur Singh Parihar Sikkim Manipal University Preamble I have made this report as an essential part of IV semester course curriculum of MBA. The title of project is â€Å"a study of HR practices in ITC† at ITC Ghaziabad. In the course of my training I have had the golden opportunity of seeing the practical application of what ever theoretical knowledge was imparted to me in a class room studies at Learning Point Sec- 16 Noida I have had the good fortune in interacting with the executive and employee of ITC Ghaziabad who were very warm and cordial in their conduct toward me. My report mainly focuses on â€Å"study of HR practices in ITC†. I hope that the finding of the project work must conform with the companies expectation suggestion made on that basis must be useful for the total performance of the employees of the â€Å"ITC Ghaziabad. † Raibahadur Singh Parihar Sikkim Manipal University OBJECTIVE The main objective of the study is as follows: ? To know the recruitment selection procedures adopted in this company. ? To improve training and development programs used in the company. To know how the performance of the employees is being appraised. ? To provide better employee welfare. ? To increase the labor productivity. Certification of ITC ITC constantly endeavors to benchmark its products, services and processes to global standards. The Companys pursuit of excellence has earned it national and international honors. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of the worlds best big compan ies. Forbes has also named ITC among AsiasFab 50 and the Worlds Most Reputable Companies ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The Development Gateway Award recognizes ITCs e-Choupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of its contribution to development priorities like poverty reduction, its scale and replicability, sustainability and transparency. [pic]ITC has won the inaugural World Business Award, the worldwide business award recognizing companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The award has been instituted jointly by the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). pic]ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation. [pic]  ITC has won the Golden Peacock Awards for Corporate Social Responsibility (Asia) in 2007, the Award for ‘CSR in Emerging Economies 2005’ and ‘Excellence in Corporate Governance in the same year. These Awards have been instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and Centre for Corporate Governance ITCs cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality certification and the first among cigarette factories in the world to be awarded the ISO 14001 certification [pic]  ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001 Environment Management Systems certification. pic]  ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001 [pic]  ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in the world. [pic]  ITCs Green Leaf Threshing plant in Chirala is the first in India and among the first 10 units in the world to bag the Social Accountability (SA 8000) certification ITC Chairman Y C Deveshwar has received several honors over the years. Notable among them are: |Year |Award | | | | |2007 |SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership| | |Symposium, Zurich. | |2006 |Business Person of the Year from UK Trade Investment, the UK Government organisation that | | |supports overseas businesses in that country. |2006 |Inducted into the `Hall of Pride by the 93rd Indian Science Congress | |2005 |Honoured with the Teachers Lifetime Achievement Award | |2001 |Manager Entrepreneur of the Year from Ernst Young Retail Visionary of the Year from Images, | | |Indias only fashion and retail trade magazine | |1998 |Honorary Fellowship from the All India Management Association | |1996 |Distinguished Alumni Award from IIT, Delhi | |1994 |Marketing Man of the Year from AM, the leading marketing magazine | |1986 |Meridien Hotelier of the Year | ITC has won the Enterprise Business Transformation Award for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for its celebrated e-Choupal initiative. [pic]  ITC is the only Indian FMCG Company to have featured in the Forbes 2000 list. The Forbes 2000 is a comprehensive ranking of the worlds biggest companies, measured by a composite of sales, profits, assets and market value. The list spans 51 countries and 27 industries. [pic]ITC continues its dominance of The Economic Times Brand Equity listing of Indias 100 Biggest FMCG Brands, with three brands from its stable making it to the top five. Gold Flake remains Indias biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITCs Scissors brand ranks at No 5 and is the only new entrant into the top 10. pic]Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian restaurant in the world and the best restaurant in Asia. Bukhara has also been adjudged one of the top 50 restaurants in the world by the London based magazine The Good Food Guide. Bukhara is the only South Asian restaurant to figure in the list. [pic]ITCs Lifestyle Retailing Business Division (LRBD) has won the Best Supply Chain Practices Award for time-effective and cost-efficient Logistics Management in Organized Retail. The awards were organized by Retailers Association of India (rai) in association with ITW Signode the International leaders in packaging solutions. ITC’s market strategies are: pic]  Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. [pic]  Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. [pic]  Ensure that each of its businesses is world class and internationally competitive. [pic]  Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various businesses. pic]  Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses. [pic]Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability. |[pic] | |Sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian | |economy and the Company’s stakeholders | [pic] | |To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder| |value | ITCs EHS Policy ITC’s mission is to sustain and enhance the wealth-generating capacity of its portfolio of businesses in a progressively globalising environment. As one of India’s premier corporations employing a vast quantum of societal resources, ITC seeks to fulfil a larger role by enlarging its contribution to the society of which it is a part. The trusteeship role related to social and environmental resources, aligned to the pursuit of economic objectives, is the cornerstone of ITC’s Environment, Health and Safety philosophy. ITC’s EHS philosophy cognises for the twin needs of conservation and creation of productive resources. In the multi-business context of ITC, Corporate Strategies are designed to create enduring value for the nation and the shareholder, through leadership in each business and the attainment of world-class competitive capabilities across the value chain. The objective of leadership extends to all facets of business operations including Environment, Health and Safety. ITC is, therefore, committed to conducting its operations with due regard for the environment, and providing a safe and healthy workplace for each employee. Various international and national awards and accreditations stand testimony to ITC’s commitment to EHS. Such external recognition further reinforces the need to direct the collective endeavour of the Company’s employees at all levels towards sustaining and continuously improving standards of Environment, Health and Safety in a bid to attain and exceed benchmarked standards, whether regulatory or otherwise. In particular, it is ITC’s EHS policy †¢ To contribute to sustainable development through the establishment and implementation of environment standards that are scientifically tested and meet the requirement of relevant laws, regulations and codes of practice. †¢ To take account of environment, occupational health and safety in planning and decision-making. †¢ To provide appropriate training and disseminate information to enable all employees to accept individual responsibility for Environment, Health and Safety, implement best practices, and work in partnership to create a culture of continuous improvement. To instil a sense of duty in every employee to wards personal safety, as well as that of others who may be affected by the employee’s actions. †¢ To provide and maintain facilities, equipment, operations and working conditions which are safe for employees, visitors and contractors at the Company’s premises. †¢ To ensure safe handling, storage, use and disposal of all substances and materials that are classified as hazardous to health and environment. †¢ To reduce waste, conserve energy, and promote recycling of materials wherever possible. †¢ To institute and implement a system of regular EHS audit in order to assure compliance with laid down policy, benchmarked standards, and requirements of laws, regulations and applicable codes of practice. To proactively share information with business partners towards inculcating world-class EHS standards across the value chain of which ITC is a part. All employees of ITC are expected to adhere to and comply with the EHS Policy and Corporate Standards on EH S. ITC’s EHS Policy extends to all sites of the Company. It will be the overall responsibility of the Divisional/SBU Chief Executives, through the members of their Divisional Management Committees, General Managers and Unit Heads, to ensure implementation of this Policy and Corporate Standards on EHS, including formation of various committees and designating individuals for specific responsibilities in respect of their Division/SBU. The Corporate EHS Department is responsible for reviewing and updating Corporate Standards on EHS, and for providing guidance and support to all concern. Corporate Governance P  r  e  a  m  b  l  e Over the years, ITC has evolved from a single product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging, paper and paperboards and international commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole. Since the commencement of the liberalisation process, Indias economic scenario has begun to alter radically. Globalisation will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITCs governance policy recognises the challenge of this new business reality in India. DEFINITION AND PURPOSE ITC defines Corporate Governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum of societal resources, we believe that the governance process should ensure that these companies are managed in a manner that meets stakeholders aspirations and societal expectations. [pic] CORE PRINCIPLES ITCs Corporate Governance initiative is based on two core principles. These are : i. Management must have the executive freedom to drive the enterprise forward without undue restraints; and ii. This freedom of management should be exercised within a framework of effective accountability. ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations. Cornerstones From the above definition and core principles of Corporate Governance emerge the cornerstones of ITCs governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance. Trusteeship : ITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees. This belief therefore casts a responsibility of trusteeship on the Companys Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are protected. Transparency : ITC believes that transparency means explaining Companys policies and actions to those to whom it has responsibilities. Therefore transparency must lead to maximum appropriate disclosures without jeopardising the Companys strategic interests. Internally, transparency means openness in Companys relationship with its employees, as well as the conduct of its business in a manner that will bear scrutiny. We believe transparency enhances accountability. Empowerment and Accountability : Empowerment is an essential concomitant of ITCs first core principle of governance that management must have the freedom to drive the enterprise forward. ITC believes that empowerment is a process of actualising the potential of its employees. Empowerment unleashes creativity and innovation throughout the organisation by truly vesting decision-making powers at the most appropriate levels in the organisational hierarchy. ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors. We believe that empowerment, combined with accountability, provides an impetus to performance and improves effectiveness, thereby enhancing shareholder value. Control : ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed. Ethical Corporate Citizenship : ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behaviour, both internally within the organisation, as well as in their external relationships. We believe that unethical behaviour corrupts organisational culture and undermines stakeholder value. ITC Ltd. Policy on Human Rights ITC believes that all its employees must live with social and economic dignity and freedom, regardless of nationality, gender, race, economic status or religion. In the management of its businesses and operations therefore, ITC ensures that it upholds the spirit of human rights as enshrined in existing international standards such as the Universal Declaration and the Fundamental Human Rights Conventions of the ILO. Policy ITC upholds international human rights standards, does not condone human rights abuses, and creates and nurtures a working environment where human rights are respected without prejudice. Implementation The Corporate Human Resources function of ITC is responsible for the Human Rights Policy design, implementation and updation. The policy is implemented at all locations of ITC through a set of separate policies and procedures covering each of the main constituents of human rights applicable at the workplaces. MonitoringAudit The assessment procedures for different constituents of this policy are defined against each specific policy. Consideration of Human Rights Impacts Across the Supply Chain As a large and multi-product enterprise whose products are benchmarked nationally and internationally, ITCs main supply chains can be grouped as follows: 1. For all its operations, technology, machinery and equipment are sourced from reputed and globally benchmarked suppliers/vendors who are expected to follow internationally accepted norms and standards on human rights. 2. ITCs major businesses are vertically integrated across several Divisions. A substantial part of the supply chain is therefore internal through strategic backward linkages. Common values relating to human rights performance are shared across this supply chain. 3. Being a major agri-based company, the agriculture sector is a major supplier of inputs for its operations. The bulk of agricultural commodities are procured from state controlled trading platforms and the open market. A very small proportion of ITCs business consists of supply chains comprising local vendors and suppliers. The policy framework for such entities is enunciated separately in Policy to Ensure Respect for Human Rights across the Supply Chain. Policy to Prevent Discrimination at Workplace ITC acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team. A discrimination-free workplace for employees provides the environment in which diverse talents can bloom and be nurtured. This is achieved by ensuring that a non-discrimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices. Policy ITCs approach to its human resources is premised on the fundamental belief in fostering meritocracy in the organisation which, pari passu, promotes diversity and offers equality of opportunity to all employees. ITC does not engage in or support direct or indirect discrimination in recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital status or affiliation with a political, religious, or union organization or minority group. Implementation The policy is communicated to all employees through induction programmes, policy manuals and intranet portals. The custodian of this policy is the head of each operational unit and Divisional Chief Executives of the respective business. ITCs complaints resolution procedure is premised on the freedom of employees to approach higher officials beyond his/her immediate superior. For the unionised employees, compliance of the policy is ensured through a robust grievance handling procedure and the presence of a union that brings violations to the notice of the unit HR head. MonitoringAuditing The accountability for the application of the non-discrimination employment policy rests with the Unit Head who reviews anti-discriminatory complaints annually or on a case-by-case basis. The Corporate Human Resources function conducts non-discrimination reviews annually on a sample basis with unit heads and through on-site assessments ITCs Core Values are aimed at developing a customer-focused, high-performance organisation which creates value for all its stakeholders: Trusteeship As professional managers, we are conscious that ITC has been given to us in trust by all our stakeholders. We will actualise stakeholder value and interest on a long term sustainable basis. Customer Focus We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction. Respect For People We are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity. We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives. We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork. Excellence We do what is right, do it well and win. We will strive for excellence in whatever we do. Innovation We will constantly pursue newer and better processes, products, services and management practices. Nation Orientation We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels ITC believes that all its employees must live with social and economic dignity and freedom, regardless of nationality, gender, race, economic status or religion. In the management of its businesses and operations therefore, ITC ensures that it upholds the spirit of human rights as enshrined in existing international standards such as the Universal Declaration and the Fundamental Human Rights Conventions of the ILO. Policy ITC upholds international human rights standards, does not condone human rights abuses, and creates and nurtures a working environment where human rights are respected without prejudice. Implementation The Corporate Human Resources function of ITC is responsible for the Human Rights Policy design, implementation and updation. The policy is implemented at all locations of ITC through a set of separate policies and procedures covering each of the main constituents of human rights applicable at the workplaces. Monitoring Audit The assessment procedures for different constituents of this policy are defined against each specific policy. Consideration of Human Rights Impacts Across the Supply Chain As a large and multi-product enterprise whose products are benchmarked nationally and internationally, ITCs main supply chains can be grouped as follows: 1. For all its operations, technology, machinery and equipment are sourced from reputed and globally benchmarked suppliers/vendors who are expected to follow internationally accepted norms and standards on human rights. 2. ITCs major businesses are vertically integrated across several Divisions. A substantial part of the supply chain is therefore internal through strategic backward linkages. Common values relating to human rights performance are shared across this supply chain. 3. Being a major agri-based company, the agriculture sector is a major supplier of inputs for its operations. The bulk of agricultural commodities are procured from state controlled trading platforms and the open market. A very small proportion of ITCs business consists of supply chains comprising local vendors and suppliers. The policy framework for such entities is enunciated separately in Policy to Ensure Respect for Human Rights across the Supply Chain Policy to Ensure Respect for Human Rights Policy across the Supply Chain ITC provides products and services of superior quality and value by sourcing its technologies, equipment and inputs from reputed international and Indian manufacturers and suppliers. Common values, relating to human rights performance, are shared across the entire supply chain because ITC is committed to the importance of a socially responsible and accountable supply chain. Policy ITC nurtures an internal working environment which respects human rights without prejudice. Likewise, it expects its business partners to establish a human rights compliant business environment at the workplace. Implementation The responsibility for implementation of this policy rests with the Divisional Chief Executive of the concerned business and the Unit Manager. The policy is communicated internally through policy manuals and intranet portals, and externally by the HR personnel of concerned units to vendors/suppliers. Monitoring Audit ITC has established a policy intent for mapping/monitoring progress and performance of existing and potential vendors/suppliers on human rights performance. Policy to Prevent Discrimination at Workplace ITC acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team. A discrimination-free workplace for employees provides the environment in which diverse talents can bloom and be nurtured. This is achieved by ensuring that a non-discrimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices. Policy ITCs approach to its human resources is premised on the fundamental belief in fostering meritocracy in the organisation which, pari passu, promotes diversity and offers equality of opportunity to all employees. ITC does not engage in or support direct or indirect discrimination in recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital status or affiliation with a political, religious, or union organization or minority group. Implementation The policy is communicated to all employees through induction programmes, policy manuals and intranet portals. The custodian of this policy is the head of each operational unit and Divisional Chief Executives of the respective business. ITCs complaints resolution procedure is premised on the freedom of employees to approach higher officials beyond his/her immediate superior. For the unionised employees, compliance of the policy is ensured through a robust grievance handling procedure and the presence of a union that brings violations to the notice of the unit HR head. Monitoring Auditing The accountability for the application of the non-discrimination employment policy rests with the Unit Head who reviews anti-discriminatory complaints annually or on a case-by-case basis. The Corporate Human Resources function conducts non-discrimination reviews annually on a sample basis with unit heads and through on-site assessments. Policy on Freedom of Association ITCs culture is characterized by cooperative relationships and high employee involvement that relies on building partnerships and interdependence. Adhering to these principles has helped build, sustain and strengthen harmonious employee relations in the organisation. Policy ITC respects the employees right to organize themselves into interest groups as initiatives of the workers, independent from supervision by the management. In keeping with the spirit of this Policy, employees are not discriminated against for exercising this right. Implementation The policy is communicated to all employees through induction programmes, policy manuals and intranet portals. The custodian of this policy is the HR head of each operational unit who reports directly to Unit Head on such issues. The actualisation of this policy is evident from the joint agreements and minutes that are signed between the union and the management. Monitoring Audit Each ITC Unit has appropriate systems and checks to ensure compliance with the Policy and statutory provisions, including means for filing of grievances, collective bargaining agreements and minutes from worker meetings. Compliance with the Policy is regularly monitored by Divisional and Corporate HR. Policy Prohibiting Child Labour and Preventing Forced Labour from Workplace The foundation of ITCs No Child or Forced Labour policy is based on the Companys commitment to find practical, meaningful and culturally appropriate responses to support the elimination of such labour practices. It thus endorses the need for appropriate initiatives to progressively eliminate these abuses. Policy ITC does not employ any person below the age of eighteen years in the workplace. ITC prohibits the use of forced or compulsory labour at all its units. No employee is made to work against his/her will or work as bonded/forced labour, or subject to corporal punishment or coercion of any type related to work. Implementation This policy is publicly available throughout the Company and clearly communicated to all employees in a manner in which it can be understood through induction programmes, policy manuals and intranet portals. The responsibility for the implementation of the policy rests with the Units HR Department and the security staff who do not permit underage persons to enter the factory as workers. Employment contracts and other records documenting all relevant details of the employees, including age, are maintained at all units and are open to verification by any authorized personnel or relevant statutory