Full Project [FK-1628 - Deepesh]

8/8/2019 Full Project [FK-1628 - Deepesh]

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A report on the study of

OPTIMIZATION OF HUMAN RESOURCES

For

Shrenuj & Co. Ltd

Submitted to the

Department of Management Studies

In partial fulfillment of the

Post Graduate Diploma In Management

Under the Guidance of

MS. RAJESWARI MENON

By

DEEPESH. P.

BATCH 16 FK 1628

SCMS COCHIN

S C M SS C M SS C M S

SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA-683 106,

COCHIN

September 2008


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DECLARATION

I, the undersigned, hereby declare that this project report entitled Optimizationof Human Resources has been written and submitted under the guidance of

Ms Rajeswari Menon and is my original work.

I understand that detection of any copying is liable to be punished in any way

the school deems fit.

DATE: DEEPESH. P


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SCMS COCHIN

SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA- 683 106, COCHIN.S C M SS C M SS C M S

CERTIFICATE

This is to certify that the project work entitled Optimization of

Human Resources has been carried out under my guidance by

DEEPESH. P in partial fulfillment of his Post Graduate Diploma in

Management during the academic year 2007 - 2009.

Date: Ms Rajeswari Menon


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SCMS COCHIN

SCMS CAMPUS, PRATHAP NAGAR, MUTTOM, ALUVA-683 106, COCHIN.S C M SS C M SS C M S

This is to certify that the project work entitled Optimization of

Human Resources has been carried out by DEEPESH. P in partial

fulfillment of his Post Graduate Diploma in Management.

DATE : Dr. V. Raman Nair

Director


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ACKNOWLEDGEMENT

In successfully completing my project report, I am indeed indebted to a largenumber of people who have encouraged and helped me in a variety of ways.

Its indeed a privilege to express my gratitude to the people involved.

I am highly obliged and grateful to SCMS for giving me an opportunity in

undertaking the project.

My profound and sincere thanks to Mr. Vinod More, DGM HR & ADMIN and

Mr. Raghu Menon, Manager- ADMIN, Shrenuj & Co, Mumbai who consented

to be my project advisors. I have paucity of words to express my obeisance

before them for their keen interest, valuable guidance, unflinching judgment

and constant encouragement during the entire course of my study.

I express my sincere thanks to Ms Rajeswari Menon, who provided me with all

her support in this great endeavour.

With limitless humility, I thank my family and friends, who bestowed me with

enough courage to accomplish this treatise.

Last but not the least, I owe my sincere regards to the Almighty for making

me able to believe in myself and letting me utilize my potential to the fullest of

my energy during the entire course of the study.

Deepesh. P


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TABLE OF CONTENTS

S. No Title Page No

1 Executive Summary 1 - 2

2 Chapter I- Introduction and theoretical background of

study

3 - 4

3 Chapter II- Research Methodology 5 - 6

4 Chapter III- Industry and Company profile 7 - 11

5 Chapter IV- Analysis and Interpretation 12- 31

6 Chapter V- Findings and Conclusion 32 - 33

7 Chapter VI- Recommendations and Suggestions 34

8 Bibliography 35 - 36

9 Appendix 37


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TABLE OF CHARTS AND GRAPHS

S. No Title Page

No

1 Chart no: 1 showing the break up of employee

strength in Shrenuj group.

13

2 Chart no: 2 showing the Labor mix of Shrenuj group. 14

3 Chart no: 3 showing the capacity of each company in

units per month.

15

4 Chart no: 4 showing the enrollment segregation oflabor in Shrenuj group.

16

5 Chart no: 5 showing the grading system in the

company.

23

6 Chart no: 6 showing the minimum and maximum

salary for each grade in various divisions.

28

7 Chart no: 7 & 8 showing the minimum and maximum


29

8 Chart no: 9 showing the minimum and maximum


30

9 Table no: 1 & 2 showing the designations and required

skills for various departments.

20



21



22

12 Table no: 7 showing the sample Job descriptions with

KRA.

26


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EXECUTIVE SUMMARY

The project titled Optimization of Human Resource was undertaken for the HR

department of Shrenuj & Co Ltd.

The major objectives of this project comprised of manpower planning, conducting

a job analysis with Key Result Area (KRA), defining wage scale for staff and

preparation of objective performance appraisal system. By implementing these

steps the company could optimize human resources and thereby reap benefits. But

the full scale of the benefits will be realized only in the future.

The major change observed, was that the company has highly competent

employees. The reason for this is due to proper manpower planning that initiated

proper profiles and packages, which was lucrative enough to attract the best talent.

It was also noted that the company had rightly expected growth which helped to

establish a new factory with all modern facilities in the month of August 2008

inside SEEPZ. The preparation of a job specification and job description helped to

establish an easier recruitment process which ensured that the right person is

employed at the right place and at the right time. It was observed that there was a

huge disparity in the wage scale for each designation therefore, the whole system

was revised to reduce the attrition level.

Based on the findings of the study the researcher puts forward certain suggestions.

The Company has a practice of hiring contract labors instead of permanentemployees. But, if the company adopts a policy where in the employees are made

permanent and encourage them for taking up higher studies which would enhance

their skill level and lead to a higher performance. The job description could be

done at least twice in a year and needs to be effectively communicated to the


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employees so that they are well updated and know exactly the things that are

expected out of them while on the job.

The research was descriptive in nature. Much of the data was sourced primarily

secondary sources like the companys database. Additional information was

collected through formal and informal discussions with supervisors, assistant

managers, managers etc.

In conclusion, the study helped to realize that optimization of resources is very

much important for companies to ensure competitive advantage over others in this

present era.


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CHAPTER I

Introduction and theoretical background of the study

Gone are those days when the Human Resources Department was considered as

the smiling and filing department. Now it is one of the most important department

of any organization. It is very easy for anyone to practice the hire and fire policy.

However, in the present era organizations are trying to retain the employees by

giving them adequate training which would enhance their skills. The Human

Resources Department has the responsibility of dealing with and overseeing the

most important, complex and valuable resources of the company- the employees.

Todays Human Resource Department in any organization is trying out various

strategies to make their employees happy, and this comes with a huge cost. But,

should any company be doing anything less for the companies most important

asset? The current scenario that one sees is that to keep their employees engaged

and more dedicated, a company must provide for more. Thus, employees nowdemand for more and unfortunately, companies dont have enough resources to

keep their people happy.

In industry after industry the traditionally powerful centers are making way for

younger, more enterprising players, who, using a potent mix of lower cost and

comparable, if not higher skills, are coming to the fore. India is one of the leaders

of this new breed of players, and there is every indication that the Asian giant is

finally awakening to its full potential.

The Diamond industry is set to grow at a rate of 40 % by 2010. The Indian Gem

and Jewellery Industry have witnessed a growth of 22.27% amounting to total

exports of US $ 20.8 billion in the year 2007-2008. The Gem and Jewellery sector


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accounted for 13.1% of Indias total merchandise exports. Majority of the

diamond factories are concentrated in Mumbai and Surat. In Mumbai, the diamond

factories are located inside the SEEPZ. There are more than 120 factories inside

SEEPZ which are engaged in the export of diamond jewellery. And also with theemergence of China as a major manufacturer of gem and jewellery India is feeling

the pressure. Diamond exporters fear that China would dent the Indian diamond

industry's prospects in the long term. Cheap labor, better infrastructure, usage of

advanced technology and business friendly policies give china a upper hand over

India in the present scenario. Today due to the cutthroat competition and global

recession, the firms are finding it difficult to survive in the market. Already many

companies have shut down their units. The only thing they can do is to use the

existing resources efficiently and effectively. Out of it Human Resources is the

most important component. So Shrenuj & Co. Ltd concentrated on optimizing the

Human Resource. By doing so they can optimize the cost of production and

sustain in the global market. By conducting proper Manpower planning, Job

analysis and Performance Appraisal system they aim to optimize the human

resource.


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CHAPTER II

RESEARCH METHODOLOGY

Rationale of the Project

The Diamond industry is set to grow at a rate of around 40% per annum by

2010.But at the same time due to cut throat competition and the global economic

recession the firms are finding it to increase their bottom line. So in order toachieve it they are concentrating more on optimizing the Human resource. By

doing so they can reduce the cost of production and sustain in the global market.

Objectives of the Study

To assess the current manpower planning, and the skill setpossessed by workers to achieve Optimum utilization of the

capacity and manpower to be hired.

To Conducting Job Analysis exercise with Key Result

Area(KRA) comprising of, crystallizing the organigram,

Defining job specification for each position and respective job

description for every staff.

To define wage scale for staff by keeping in mind the cost to the

company.

To prepare an Objective Performance Appraisal System (PAS)

inorder to assess the performance of the employees without any

bias.


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Type of Research

The type of research adopted for the project was primarily Descriptive in

nature.

Data Collection Method

The data collected was mainly from secondary sources like the company

database and useful websites. This was analyzed with the help of MS-Excel.

Other data collection methods were formal and informal discussions with

managers, assistant managers and HODs.

Data Analysis

The data so collected was transferred into an MS Excel sheets and analyzed. It

helped to bring out proper charts and graphs which gave a better view on the

results achieved from the study.

Limitations of the Study

The project was conducted and supervised by the DGM HR and technical

managers. The decisions on the entire project work were taken by them and

researchers duty was to assess them in conducting the entire activity.


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CHAPTER III

INDUSTRY AND COMPANY PROFILES

DIAMOND INDUSTRY

The Diamond industry has witnessed incredible growth in India in the last few

years, lifting hundreds of thousands of people out of rural poverty into

employment.By the mid 1990s, India had emerged as the largest cutting centre inthe world, doing more than 50 per cent of the total value of polished diamonds

worldwide and 90 per cent of the volume. The massive industry employedover amillion people, over 90 per cent of the worlds workforce in the diamond industry.

Over the last five years, the development of the jewellery industry has really

accelerated both in terms of quality of the product and the expansion in terms of

sheer size. The Special Economic Zone, SEEPZ in Mumbai, in which the modern

jewellery industry first took root, is now the worlds largest single concentration

of jewellery manufacturing units-over 120 factories employing an estimated

35,000 people. Similarly in Surat there are more nearly 1000 small units which

gives employment to nearly 8 to 10 lakh people. Surat is known as the Diamond

hub of India.

The knowledge and expertise of the diamond industry's highly skilled workforce

has made India one of the key contributors to the growth of diamond jewelry

worldwide. High Tech systems like Vacuum pressure casting machines, laser

marking systems, automatic state of art refining plants, automatic modular

cleaning systems, disc and drag finishers, even continuous casting or diffusion

welding machines are being extensively used which have changed the face of the


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Indian Diamond Industry. Finally, after this arduous process, the finished pieces

are eventually sold at fancy shops on Fifth Avenue and Bond Street. India is fast

moving towards its next stage of development. There is an indication that the

country is poised for yet another qualitative leap. Today the country, with its hugepolishing industry, a well developed international marketing network, and a strong

financial system is well set to emerge as a trading centre as well.

India a country with a million diamond workers and an 80% share of the diamond

polishing industry are facing tough competition from the dragons-China. Yet India

is on the defensive and expects to lose share. Antwerp, which still specializes in

polishing larger diamonds, also expects to lose share to China.

INTRODUCTION TO SHRENUJ & COMPANY

Shrenuj & Company Limited, a 1100 crore plus company is an integrated gem and

jewellery conglomerate having presence across 13 countries with activities

ranging from diamond processing, jewellery manufacturing to branding and

retailing. It employs over 2,500 people in its worldwide operations. Shrenuj

Group's state of the art diamond manufacturing facilities in India and Israel

specialize in processing better quality high value diamonds in larger sizes, a

traditional non-Indian product and one of Shrenuj's key differentiators. Shrenuj

also processes smaller diamonds, regular Indian products, in its other units.

The company exports diamonds and precious stones to many international

markets, mainly Japan, the US, France, Belgium, Hong Kong, New Zealand and

Germany. The company derives more than 80 per cent of its revenues from

Polished Diamonds while Studded Jewellery contributes the rest balance. The

jewellery division of Shrenuj is located at SEEPZ (Mumbai) and adheres to one of

the most stringent international standards. It has a production capacity of


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approximately 45000 units per month and is equipped with state of the art

machinery.

The origin of Shrenuj dates back nearly a century when the Late Mr. Kalidas S.Doshi started a broking firm trading in diamonds in 1906. In 1943, the company

commenced exporting polished diamonds sourced from local polishing units. By

1956, the firm started sourcing rough diamonds in the international markets and

processed them in India for exports.

The firm was converted into a corporate body in 1982 and became sight holder of

Diamond Trading Corporation (DTC), the trading arm of DeBeers. In 1992, the

company set up an ultra-modern diamond and precious stone studded jewellery

unit in Mumbai exclusively catering to its overseas clientele. A second unit

followed this in 1995. The jewellery facilities manufacture studded ornaments in

both gold and platinum. In 2002, Shrenuj set up a fully integrated diamond

polishing and diamond studded jewellery facility in the diamond district of

Mumbai, India. In recognition of its achievement in exports, Shrenuj has received

several awards from the Government of India. The jewellery division has won the

De Beers India jewellery design contest for the best design, the Indian National

Design Contest and the prestigious Diamonds International Award organized by

DeBeers for the best jewellery designed. Shrenuj has always pioneered in

introducing various systems and procedures in an effort to bring about efficiency

and transparency in dealing with its internal as well as external customers.

In 2003, Shrenuj entered jewellery retailing through its acquisition of DailyJewellery in Hong Kong. The discount retail chain was re-positioned as fashion

jewellery chain under the brand Joliesse. The chain presently has 12 stand-alone

shops in Hong Kong and is slated to make an entry in mainland China by the end

of 2008 by opening a store in Shanghai. In China, company will adopt dual model

of shop in shop and stand-alone stores.


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In addition, Shrenuj has a brand portfolio comprising of leading brands such as

Sveni, Bhavya, Arisia (co-owned), Fiana, Valina, Caro74, MasterCut, Scintilla66

and Amante88. These brands are retailed through exclusive arrangement with

independent retailers in nine countries.

Shrenuj's international distribution model compliments its international

manufacturing platform. Based on hub-and-satellite approach (logistical hubs

located in key trading centers and satellites operating in the consumption markets),

its 15 offices cater to almost all corners of the world. The company has entered

into JVs in Israel, France, USA and Hong Kong, in addition to its own offices

worldwide.

Shrenuj's jewellery manufacturing operations are located in India, in addition to

dedicated outsourcing facilities in China, controlled by a strong outsourcing and

quality assurance office in Hong Kong. The product development team of

designers and merchandisers is spread across the globe, to cater to national as well

as international markets to quickly respond to the changes in fashion trends.

Shrenuj is a recipient of many national and international jewellery awards.

In addition, Shrenuj is a leading participant in DTC's Forevermark Programme in

Japan and India one of the authorized manufacturers of Platinum Guild

International. These brands are managed independently by Shrenuj's own

marketing teams in each country, backed by a strong downstream distribution

worldwide.

Shrenuj & Company acquired the 80-year-old, US-based Simon Golub & Sons,one of the top five US jewellery distributors. The deal, valued at USD 22.7

million, for acquiring 84.6% stake comes close on the heels of Shrenuj expanding

its footprint across USA.


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The Mumbai-based diamond company Shrenuj & Company acquired `Arisia

Solitaire` brand from the UK-based Diamond Trade Corporation (DTC) for an

undisclosed amount. Currently, Arisia is the leading brand in expensive solitaires

segment in India. Arisia is a premium brand and is sold at an average price of Rs350,000. With the acquisition, Shrenuj plans to launch high-end designer watches,

bags and other accessories in the global market under Arisia brand.

It provides all kinds of diamond jewellery like pendants, rings, bracelet, and

earring. It also uses other precious stones like Ruby, Emerald, and Sapphire etc.

The major foreign clients for Shrenuj are:

Zales diamonds

Helzberg diamonds

Gordons Jewellers

Friedmans Jewellers

Ultra diamonds etc

Shrenuj has four companies inside SEEPZ. Each company caters to different

clients of different regions. For example Kiara caters to the needs of French

clients. Similarly Moon caters to the needs of US clients. This style is followed

because each region has different tastes. US clients go for low quality diamonds

but they come up with a vide range of designs. Whereas European clients go for

high quality diamonds with complex designs. So Shrenuj deided to follow a

method where each company can specialize on a particular group of clients.


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CHAPTER IV

ANALYSIS AND INTERPRETATION

The project intends to Optimize the Human resources of Shrenuj & Co Ltd in

order to achieve an effective system. This ensures better performance of the

employees. Human resources are the most precious resources of an enterprise.

Human Resources Optimization (HRO) involves employee allocation and

timetabling, to ensure the efficient management of the personnel, conforming to

various social regulations and labor contracts. Thus, optimum utilization of the

existing human resource is the main objective of any company


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1. Manpower Planning

Before we depart for a journey it is necessary to know our destination. In short

Manpower planning (MPP) determines where we are, where we want to go and

how we are going to get there. MPP is an integral part of corporate planning.

Employee strength

Shrenuj, 278

Moon, 260

SDL, 292

Kiara, 108

Shrenuj

Moon

SDL

Kiara

Chart no: 1 Shows the break up of employee strength in the Shrenuj group

In the above chart the present manpower of group companies are shown. Kiaras

employee strength is only 108. This is because Kiara is a company which caters to

the needs of a french client. So the demand is low because only limited orders will

be there. But at the same time all other companies are having high employee

strength. The main reason for this is that they cater to the demands of clients in US

and Europe. They come up with wide variety of designs and they will have bulk

orders.


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Labour Mix of Shrenuj Group

0

10

20

30

40

50

60

70

80

90

100

Shrenuj Moon SDL Kiara

Highly Skilled

Skilled & Unskilled

Chart no: 2 shows the Labor mix of Shrenuj group

The chart shows the Labor mix employed at Shrenuj group. The highly skilled

consists of the exceptionally talented workers who engage in designing and

setting. Whereas the skilled and unskilled consists of polishers, filers etc. From

this we can infer that the firms are having more of highly skilled labor when

compared to skilled and unskilled labor. The percentage of highly skilled labor is

high in Shrenuj group because the company deals with the production of high

quality jewellery products like diamond, platinum and gold. The company cannot

compromise on the quality of the products because all the products are exported to

the foreign clients. This needs very high expertise.


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0 2000 4000 6000 8000 10000 12000 14000 16000

Shrenuj

Moon

SDL

Kiara

Capacity in units per month

Capacity in units per month

Chart no: 3 Shows the capacity of each company in units per month

In the above chart production capacity is shown. Here Kiara is having the lowest

capacity because it is only catering to the needs of the French client. But at the

same time SDL is having a production capacity of 15000 units per month mainly

due to the fact that it needs to meet the demand / order from the European

clients.Mmoon and Shrenuj is having 13000 units each as it cater to the US clients.

In all these companies technology is at its best.


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210

37

38

70

95

185

198

26

0

50

100

150

200

250

300

Moon Kiara SDL Shrenuj

payroll Contract

Chart no: 4 Shows the enrollment segregation of labor in Shrenuj group.

In the above chart the company wise breakup of contract and payroll employees

are shown. It can be noted that in Moon and Shrenuj the percentage of payroll

employees are very high because these two companies were set up in the 1990s,

so the experience that they gained added them on to the payroll. In these

companies the average experience of the employees is nearly ten years. Whereas

in the case of Kiara and SDL the percentage of payroll employees is very low due

to the fact that these companies were established after 2000. Maintenance of

contract employees helps to practice the hire and fire policy effortlessly.


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Therefore, after conducting manpower planning, it has been noticed that in each

department, vacant seats are found out by finding the difference between the

available seats and the number of people employed. Depending upon the future

requirements the seats are filled up. The diamond industry is very seasonal innature and the demand increases only during festive seasons. Due to this the

prediction of the business is limited to a certain extend. Now Shrenuj is expected

to grow at a steady pace of 20 30 % per annum because they are having well

established retail outlets in US, UK and Hong Kong. The company has also

devised a plan to set up shops in the major metros in India. They expect to perform

well in the coming years and in the previous month, they have set up a new state

of art factory inside seepz,

To improve the quality of the employees in the future, the company is planning to

re-engineer the recruiting process. Here, the entire process is being reviewed for

effective results. This includes looking out for alternate resources, linking job

specification with employee profile and linking wage scale with salary

expectations.


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2. Conducting job analysis exercise with KRA

Job specification is a process that qualifies the major requirements in a job

incumbent for the effective performance of the job. This process helps to

understand the qualities needed for employees; to provide optimum work

performance. Thus, this a systematic process of gathering documenting and

analyzing data about the work required for the job. This comprises of job

description, principle duties, information about skills and responsibilities and

models and techniques. It provides an objective picture of the job and not the

person.

Various contents of a job specification can be prescribed in three terms:

(1)Essential qualities which a person must possess

(2) Professional qualities that the person must possess

(3) Years of experience required

If you look at the content of a job specification, you will find that various qualities

that a job incumbent should possess may be divided into two broad categories:

technical qualities and behavioral qualities. Technical qualities consist of

knowledge and skills related to how a job should be performed. Knowledge

refers to the possession of information, facts, and techniques of a particular job.


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Skills refer to the proficiency required to use the knowledge to perform the job.

Generally technical qualities are job specific, that is, technical qualities, which are

relevant to a particular job, will not be relevant to another job if both jobs differ

significantly. Behavioral qualities are not job-specific but are of universal natureand are applicable in most of the jobs.

Thus, a basic structure of the important designations of each department was

initialized to set a systematic guideline for managers to help in understanding the

requirement of the firm. This specifies the basic knowledge skill and qualities that

the employees must have.


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Designations Remarks

AVP/ VPSound knowledge on the Operations and Productionprocess, knowhow of Emperor

DGM/AGM/ GM

Overall knowledge on Operations and Productionprocess, knowhow of Emperor

MANAGEROverall knowledge on Operations and Productionprocess, knowhow of Emperor

Asst.MANAGER


Sr.OFFICER


ASSISTANTComputer knowledge, Typing- 30 WPM, knowhow ofemperor

Table no: 1 Shows the designations and required skills for the production

department.


AVP/ VPKnowledge on latest HR and Admin Practices,knowhow of Spine software

DGM/ AGM/GM

Knowledge on latest HR and Admin Practices,knowhow of Spine software

MANAGERKnowledge on latest HR and Admin Practices,knowhow of Spine software

Asst.MANAGER Knowhow of Spine software

Sr. OFFICER Knowhow of Spine softwareASSISTANT Typing Marathi, Hindi and English

Table no: 2 Shows the designations and the required skills for the HR and

Administration department.


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AVP/ VP

Sound knowledge about the accounting and export

import practices inside SEEPZDGM/ AGM/GM

Knowledge about accounting and export importpractices, knowhow of Tally& ERP

MANAGERKnowledge about accounting and export importpractices, knowhow of Tally& ERP

Asst.MANAGER

Knowledge about accounting and export importpractices, knowhow of Tally& ERP

Sr. OFFICERKnowledge about accounting and export importpractices, knowhow of Tally& ERP

ASSISTANT Tally and ERP

Table no: 3 Shows the designations and the required skills for the Accounts

and Exim


AVP/ VPSound knowledge about the industry, Goodcommunication skills(written and verbal)

DGM/ AGM/GM

Sound knowledge about the industry, Goodcommunication skills(written and verbal)

MANAGERGood communication skills(writtenand verbal),knowhow of EMPEROR software

Asst.MANAGER

Good communication skills(writtenand verbal),knowhow of EMPEROR software

Sr. OFFICERGood communication skills(writtenand verbal),knowhow of EMPEROR software

ASSISTANT Typing, Computer skills, Accounting

Table no: 4 Shows the designations and the required skills for the Sales and

Marketing.


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AVP/ VP

Sound knowledge about the industry, knowhow

of ideas, rhino, jewel CAD

DGM/ AGM/ GMSound knowledge about the industry, knowhowof ideas, rhino, jewel CAD

MANAGER Know-how of ideas, rhino, jewel CAD

Asst. MANAGER Know-how of ideas, rhino, jewel CAD

Sr. DESIGNER Know-how of ideas, rhino, jewel CAD

ASSISTANT Typing

Table no: 5 Shows the designations and the required skills for the Product

Development / Designing / CAD

Designations Experience

AVP/ VP Minimum 10 years in the industry

DGM/ AGM/ GM Minimum 10 years in the industryMANAGER Minimum 6 years in the industryAsst. MANAGER Minimum 3 years in the indusrtySr. DESIGNER Minimum 2 years in the industryASSISTANT Minimum 0-1 year

Table no: 6 depicts the required experience for each position. This ensures

finding the correct people for each position.

Thus, the job specification process helped to formulate a systematic table of the

designations, qualifications, skill, experience etc required for in every department.

This gives a proper guideline for the company to follow while recruiting the

required amount of employees.


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The graph basically depicts the structure of the designations ranked according to

the positions held in the organization. That means from the top level to the bottom

level. This helps to maintain a proper job grade of the positions held by theemployees in the organization.


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Job Description

Job description is a written statement showing job title, tasks, duties and

responsibilities involved in a job. It also prescribes the working conditions,

hazards, stress and relationship with other jobs.

Thus, a job description contains the following information:

1. Job title, code number, and department / division.

2. Job contents in terms of activities or tasks performed.

3. Job responsibilities towards effective performance of the job.

4. Working conditions specifying specific hazards/stress.

5. Social environment prevailing at the workplace.

6. Extent of supervision given and received.

7. Relationship with other jobs-vertical, horizontal, and diagonal.

In order to make the job analysis more effective, job description is made for each

staff in the organization by linking it with Key Result Areas (KRA). A basic

structure for job description was compiled to implement the above mentioned

plan. (Annexure)The vital part of a job description is the KRA which describes the

important duties that a staff must perform. Thus, this procedure helps in giving

proper understanding of the job to be performed by the staff.

After observing the work culture of the organization the Job Description were

made for each designation.


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DEPARTMENT DESIGNATION REPORTING

OFFICER

KRA

Production Manager GM-Operations Planning and executionof orders.

Quality Management

Inventory management

Cos t control measures

Effective

communication

Human Resources Manager GM-

HR&Admin

Recruitment

Retention

Training &

Development

Organizational

Development

Effective

Communication

Administration Manager GM- HR &

Admin

Asset & Infrastructure

Management

General Administration

Housekeeping

Vehicle Management

Liasioning

Effective

Communication

Table no:7 Shows the sample Job descriptions with KRA


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From the above Job description it is very clear that what an HR or Administration

Manager should do. In addition to this the responsibilities under KRA are alsomentioned in the Job description. By mentioning this it is very easy to analyze

each ones performance based on these functions or responsibilities.


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Wage scale

Wages form the prime part of motivating your employees. It is the best means bywhich you can retain your employees. There is a proper scale pertaining to each

department of the company. It is necessary for each firm to fix a minimum and

maximum scale for each grade. There should not be a disparity in the income

provided.

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

M2 M3 M4 M5 M6 M7

Grade

S

alary

Min Max

Chart no: 6 Shows the minimum and maximum salary for each grade in the

Diamond Division.


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0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

M2 M3 M4 M5 M6 M7

Grade

Sala

ry

Min Max

Chart no: 7 Shows the minimum and maximum salary for each grade in the

Operations division.

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

M3 M4 M5 M6

Grade

Salary

Min Max

Chart no: 8 shows the minimum and maximum salary for each grade in Sales

& Marketing division.


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0

200000

400000

600000

800000

1000000

1200000

1400000

M2 M3 M4 M5 M6 M7

Grade

S

alary

Min Max

Chart no: 9 shows the minimum and maximum salary for each grade in the

Shared Services division.

The above four charts show the prevalent wage scales for the grades in each

division of the company. From the chart we can analyze that there is a wide gap

between the minimum and maximum scale for each grade in a division. The

salaries are given to the performers and not for the employees who are highly

experienced.


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Performance Appraisal

Performance appraisals are widely used in the society. The history of performance

appraisal can be dated back to the 20th century and then to the second world warwhen the merit rating was used for the first time. An employer evaluating their

employees is a very old concept. Performance appraisals are an indispensable part

of performance measurement.

In order to have a proper non biased Performance Appraisal System(PAS) we

should have a classification of assessing performance of the employee in to

objective & subjective performance appraisal from. Here both the appraiser and

appraisee need to fill the form. (Annexure)

By analyzing the PAS the HR is able to find out the skills of the employee, how he

is performing etc. Thus the company will be able to identify what he is lacking and

what should be done in order to improve his performance.


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CHAPTER V

FINDINGS & CONCLUSION

The project, which covered the objectives namely Man Power Planning,

Conducting Job Analysis, Defining wage scale and objective performance

appraisal system would help in optimizing the Human Resources of the

organization. The results of these steps will not be seen in a short span of time, it

is a process which would take a long time to reap its benefits. Now as such the

company is not experiencing the benefits of the policies adopted by the company.

The changes can only be seen in the way the company functions.

The major change is that the company is now having employees who are

satisfied with their profile and package. Earlier employees used to have the

same profile but regarding the salary certain negotiations were made. But

now its not prevalent because in the initial stages of recruitment itself the

company will only select those candidates whose profile and expectation is

closely matching with the company requirements.

The Production reports are prepared every day and from this the company

is able to find out the daily production units. So if there is any shortfall in

the production the company can prepare alternate adjustments like extra

working hours, Arrangement of contract employees, Outsourcing the work

to sister concerns. This can be applied in the case of increase in order. The

company had rightly expected the growth and because of this a new factory

with all modern facilities was functional in the month of August 2008.


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The preparation of job specification and job description helped in finding

out what the are the companies requirement from the employees. It helped

in making the recruitment process easy and it ensures that the right personis employed at the right place at the right time. The company also enquired

about the candidates performance in the previous company. By doing this

they can make sure that whether the candidate suits for the position.

Wage is the most attractive tool for motivating the employees. But at the

same time a company will try to get t he most from an employee at a wage

that is feasible for the them. In Shrenuj the package is very low and this is

the main reason for high attrition rate.


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CHAPTER VI

SUGGESTIONS & RECOMMENDATIONS

The Company has a practice of hiring contract labors instead of permanent

employees. It would be better if the company adopt a policy where in the

employees are made permanent. The problem with the present system is

that the employees know that their job is not assured and they can be fired

with notice.

The job description could be done atleast twice in a year due to the fact that

the roles and tasks which are performed is very dynamic in nature in the

present era.

The Job description needs to be effectively communicated to the employees

so that they are well updated and know exactly the things that are expected

out of them while on the job. This could also avoid confusions regarding

the job requirements which makes it transparent.

The company can encourage the workers for taking up higher studies which

would enhance their skill level and lead to a higher performance. But the

company should make sure that the employee should stay in the company

after the completion of the course.


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BIBLIOGRAPHY

Books referred

1. Cascio, Wayne F. Managing Human Resources, 7th edition New Delhi:

Tata Mc Graw Hill, 2006.

2. Fisher, Cynthia D. Human Resource Management, 5th

edition New

Delhi:Biztantra, 2004.

Websites Referred

1. Shrenuj Co Ltd, Mumbai (official website) 20 June 2008.

2. Shrenuj Newsletter. 25 June 2008.

3. Gem and Jewellery Export Promotion Council (official website). 13 July

2008.

4. Manpower Planning. 20 July 2008.
http://www.shrenuj.com/http://www.moneycontrol.com/http://www.citehr.com/http://www.citehr.com/http://www.moneycontrol.com/http://www.shrenuj.com/


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5.

Browsed on 23 July 2008.

.

.
http://www.superjobsonline/interview/job%20description/job%20specification%20.comhttp://www.superjobsonline/interview/job%20description/job%20specification%20.com


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Annexure 1 JOB DESCRIPTION SHRENUJ

DESIGNATION : MANAGER - ADMINISTRATIONGRADE :

DEPARTMENT :ADMINISTRATION

REPORTING TO: GM HR & ADMIN DEFINING BODY : HRD

Key Result Areas Key ResponsibilitiesAsset & InfrastructureManagement

Responsible for proper upkeeping of assets and infrastructure of organization. Development of vendor for office automation. Carry out Cost Benefit Analysis during decision making. Negotiate with various parties for selling of scrap in coordination with GM HR & Admin. Responsible for proper installation, monitoring and renewal of AMC for office equipments.

GeneralAdministration

Responsible for making necessary arrangements for various events like fairs, exhibitions,conference, etc.

Responsible for making necessary arrangements for guests and customer visits (pick up,gate passes, food etc).

To coordinate with authorized agencies and make necessary arrangements for businesstours of employees.

e Action with QC and Production to ensure that the same problem does not reoccur.

Housekeeping Responsible for overall cleanliness and general housekeeping of all the units. Monitoring the contract terms, renewal dates and bill approvals of housekeeping agencies

Vehicle Management Purchase and maintenance of company vehicles. Arrangement of vehicles on hire. Monitor fuel consumption of company vehicles. Responsible for renewal of insurance policy, PUC etc.

Liaisoning

Liaisoning with government authorities like SEEPZ, BMC, MIDC, MPCB, RTO, FireDepartment for renewal and obtaining permits and licenses for existing units and newprojects.

Periodic liaisoning with GJMA and GJEPC.

EffectiveCommunication

Timely reporting to the GM HR and Admin for negotiation of contracts and purchases. Coordinate with employees going on business tours for compliance of legal formalities. Proper and timely reporting to superior. Any untoward act/incident which is against the companys interest is to be reported

immediately to higher authorities.

Discipline

To maintain discipline and strictly adhere to Code of Conduct laid down by management.

AUTHORIZED TO

Negotiate on terms and conditions with vendors and service providers. Make need based international calls. Endorse cash vouchers. Counsel and warn verbally the non-performers. Approval material requisition (required by their departments). Endorse manpower requisition. Approve leave to employees reporting.

REPORTING FROM

Officer Administration


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Annexure 2 EMPLOYEE ASSESSMENT FORM

APPRISEE (AP E)Name :

Designation :

Department :

APPRAISER (APR)Name :

Designation :

Department :

RATING SCALE

Excellent . Very Good Good SatisfactoryUnsatisf

ory

(10) (7) (5) (3) (1)Sr.No. Rating Scale

(Score)

APE APR APE APR APE APR APE APR APE

Business Understanding

1. Understanding diamond and jewelleryindustry.

2. Understanding competitors3. Understanding factors affecting business.4. Contribution to Business Vision5. Focus on adding value to customers6. Focus on adding value to shareholders

Role / Functional Competences

7. Job Knowledge for Role performing8. Job knowledge Superior to Subordinate9. Awareness about best practices in the

industry


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10. Aligning functions and goals withcompany goals

Commercial Competences

11. Focus on Profitability12. Estimation and forecasting ability13. Negotiation Skills14. Guidance for Cost Control

Perform ance Orientation

15. Setting goals through interaction16. Utilization of Resource / Assets17. Result Orientation18. Timely Decision Making19. Problem Solving Ability20. Appreciation for work done

Team Or ientation

21. Clarifying mutual expectations22. Project Implementation23. Assembling Required Competences24. Supporting Colleagues25. Responding to Colleagues expectations26. Building Acceptance among team

members.

Leadership Behavior

27. Treatment to colleagues28. Inspiring team towards achieving

company goals


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29. Understanding colleagues30. Power sharing31. Setting personal example32. Managing Conflict of Members

People Developme nt

33. Encouragement for learning new ideasand methods

34. Guiding and Coaching direct reports35. Promoting Peer learning36. Upholding dignity of relationship37. Openness for criticism / feedback from

others

38. Freedom for subordinates for operateManagement Competence

39. Managing Change40. Encouragement for absorption of new

technologies

41. Choosing right focus for ChangeManagement

42. Being Consulted with industry circle43. Being Consulted with Government Bodies44. Generation of support within organization45. Generation of support outside of the

organization

W ork Ha bits

46. Work Planning47. Openness for learning48. Risk Taking


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49. Time management50. Meeting Management

TOTAL

GRAND TOTAL

Any Achievem ent : Appraiser:Appraisee:

If in Probation Period:Confirm / Extend Probation Period

Appraisee AppraDate: Date:

Signature: Signature:

Comm ents by H.R.

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