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Management Hierarchy &
HR ImplementationsOf Aditya Birla Group.
(Industrial Sociology)
By Andrea Mendes
Aditya Birla Group
About Birlas Aditya Birla Group started in 1857.
Shiv Narayan Birla started cotton trading operations in the small town of Pilani in Rajasthan.
Ghyanshyamdas Birla(GD birla)-1919-he set the manufacturing company.
Grandson of G.D.Birla is Aditya Vikram Birla(A.V.Birla)-1964
Son of A.V.Birla is Kumar Mangalam Birla(K.M.Birla)-1995.
Some HistoricalAchievements in India
1857 -The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla – cotton trading operations commence at Pilani, Rajasthan.
1947-Grasim is incorporated. (rayon weaving)
1958 -Hindalco is incorporated. (aluminium)
1966-The Indian Rayon Corporation Ltd is acquired.
1986-The Birla Growth Fund is set up. (to finance industrial equipment, plant and machinery and consumer durables, as well as for stock market operations)
1988 -joint venture with Hindustan Petroleum Corporation Ltd (to set up a three-million-ton refinery, Mangalore Refineries and Petrochemicals Ltd.
2000 -Indian Rayon acquires Madura Garments
2006-Hindalco in a joint venture with Almex USA Inc.
Vision And Mission
VISION
To be a premium global conglomeratewith a clear focus on
each business.
MISSION
To deliver superior value to our customers,
shareholders, employees and society at large.
Group ProfileGroup companies Grasim Industries Ltd. Hindalco Industries Ltd. Aditya Birla Nuvo Ltd. UltraTech Cement Ltd.
Indian companies PSI Data Systems Aditya Birla Minacs Worldwide Limited Essel Mining & Industries Ltd Idea Cellular Ltd. Aditya Birla Insulators Aditya Birla Retail Limited Bihar Caustic and Chemicals Ltd.
Joint ventures Birla Sun Life Insurance Birla Sun Life Asset Management
Company Ltd. Birla Sun Life Distribution Company Ltd. Tanfac Industries Ltd.
International establishments
Thailand
Philippines
Indonesia
Egypt
Egypt
China
Canada
Australia
Laos
North and South America, Europe and Asia
Some Of The ProductsVSF
GARMENTS
TEXTILES
Management HierarchyChairman
Chief Executive Officer
Vice President
Assist. Vice President
General Manager
Senior Manager
Chief Financial Officer
Manager
Assistant Manager
Implementations by H.R Department
1. Recruitment Process.2. 360 Degree Appraisal.3. Hierarchy based on Performance of Employees.4. Scholarships to Students and Awards to
Employees.5. Happiness At Work.6. Retirement Policy. Some of the implementations were brought
about by Mr.K.M.Birla himself and were later carried on by the organization's H.R department.
Recruitment process There was a change in the group’s policy in
house recruitment. In 1996, there were some changes made in group’s HR system. Since then hiring of professionals from other companies into the management team was introduced.
360 Degree Appraisal A 360 degree feedback program was introduced in
1999 that permitted managers to raise questions over leadership styles, managerial ability and also personal traits.
After the feedback, each senior manager had to submit a six page letter mentioning the areas of improvement and their expectations.
Hierarchy based on Performance of Employees
Before K.M.Birla took the chairmanship, the hierarchy in the group was determined by seniority instead of merit. He instituted a performance appraisal system. He decided to implement performance management systems, reviewed compensations and accentuated on training to bring meritocracy.
He personally led the recruitment program from business schools.
Scholarships to Students & Awards to Employees
The Aditya Birla scholarship was introduced to promote excellence among students community to cultivate the leaders of tomorrow.
The Aditya Birla awards were launched in 1999 where team achievements are recognized every year.
Happiness at Work The organizational health survey was
introduced by the late 1990s, which measures the “Happiness at work” index. This was carried out to track the employees satisfaction at work.
Retirement policy A retirement policy was introduced in
1995,on the basis of which around 325 senior employees, who were in their early 60s had quit the organization in the next five years. Subsequently about 400 young employees replaced them.
