HR Audit Raw Data (1)

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1) http://download-reports.blogspot.com/2011/02/hbl-human-resource-hr-practices.html

HBL hr practices AbstractThis paper examines the impact of HR practices on employee performance in Habib Bank Limited.The reason we investigated the impact of HR practices (Compensation Practices, Promotion Practices and Performance EvaluationPractices) in Habib Bank Limited in order to evaluate the performance of their employees.

A number of researchers have established the relationship between HR practices and employee performance but they mainlydiscussed developed countries. Little evidence is available about relationship between HR practices and employee performance fromdeveloping countries like Pakistan. This study examine the relationship between three HR practices i.e. compensation, promotion andperformance evaluation and perceived employee performance among HBL Pakistan. The result of the study indicates a positiverelationship between compensation and promotion practices and employee perceived performance while performance evaluationpractices are not significantly correlated with perceived employee performance. HBL need to revise Performance Evaluation processand define clear career paths to enhance the performance of employees. Subjectivity overruling objectivity and performancequantification technique lacks in HBL.IntroductionHabib Bank Limited commonly referred to as " HBL" and head-quartered in Habib Bank Plaza , Karachi , Pakistan , is the largest bankin Pakistan . The bank has a network of over 1450 branches in Pakistan and 55 branches worldwide. It has a domestic market share of over 40%. It continues to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and

loans to small industries, traders and farmers. Overseas, it has operations in the following countries:

y Afghanistan , Australia , Bahrain , Bangladesh , Belgium , Canada , China , France ,HongKong , Iran , Kenya , Lebanon , Maldives , Nepal , Netherlands , Nigeria , Oman ,Singapore , Sri

Lanka , Tanzania , Turkey , UAE, UK & USA .

MissionTo be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging markets, providingour customers with a premium set of innovative products and services, and granting superior value to our stakeholders shareholders,customers and employees.Services

Habib Bank offers the basic range of banking services to its customers, to include Commercial, Corporate, Investment, and RetailBanking, Treasury, and Islamic Banking .HistoryMohammed Ali Jinnah , Pakistan's founding father, realized the importance of financial intermediation while he was campaigning for thecreation of a separate homeland for the Muslims of India . He persuaded the Habib family to establish a commercial bank that couldserve the Indian Muslim community. His initiative resulted in the creation of Habib Bank in 1941, with HO in Bombay (now Mumbai ),and fixed capital of 25,000 rupees. The bank played an important role in mobilizing funds from the Muslim community to finance the All-India Muslim League 's campaign for the establishment of Pakistan. Habib Bank alsoplayed an important role in channeling relief funds to the people hurt in the communal riots and violence that preceded the departure of the British from India.

After Pakistan was born in 1947 , Habib Bank, at the urging of Governor-General Jinnah, moved its headquarters to Karachi, Pakistan's

first capital. This gave Karachi its first commercial bank of the newly formed Islamic Republic of Pakistan. The Habib family owned andmanaged the bank until the Pakistan government nationalized it on 01 January 1974.

y 1951 HBL opened the first of 3 branches in Sri Lanka . y 1952 HBL established Habib Bank (Overseas).y 1956 HBL opened first of 5 branches in Kenya .y 1957 or 1958 HBL opened a branch in Aden .y 1961 HBL opened the first of what would become 6 branches in the UK.y 1964 HBL opened the first of 4 branches in Mauritius and a branch in Beirut .y 1966 HBL opened the first of 8 branches in the UAE.y 1969 HBL opened first of 3 branches and an OBU in Bahrain . However, HBs branch in Aden is nationalized.y 1971 HBL opened an OBU in Singapore and a branch in New York .y 1972 HBL opened the first of 11 branches in Oman . HBL constructed Habib Bank Plaza in Karachi to commemorate the

banks 25th Anniversary.y 1974 The government of Pakistan nationalized HBL and HBL merged with Habib Bank (Overseas).y 1975 HBL opened a branch in Belgium . HBL also merged with Standard Bank, a Pakistani bank.y 1976 HBL opened a branch in the Seychelles , the first of two branches in Bangladesh , and a branch in the Maldives .y 1979 HBL opened a branch in the Netherlands .y 1980 HBL opened a branch in Paris and another in Hong Kong .


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y 1981 HBL established Nigeria Habib Bank with 40% ownership. HBL also opened a representative office in Teheran .y 1982 HBL opened a branch in Khartoum .y 1983 HBL opened branch in the Karachi EPZ and a branch in Istanbul .y 1984 HBL established Habib American Bank in New York with a branch each in Manhattan and Queens , and a US

International Banking Facility. HBL also opened a branch in California.y 1987 HBL opened in Australia .y 1991 The Habib Group established a separate private bank, the Bank AL Habib , after private banking was re-established in

Pakistan. HBL opened a branch in the Fiji Islands , and took over the Paksistani branches of failed bank, BCCI .y 1992 In Nepal HBL acquired 20% of Himalayan Bank.y 1995 HBL established a representative office in Cairo .y 1990s HBL established Habib Finance (Australia), and Habib Finance International Limited, Hong Kong.y 2000 HBL established Habib Canadian Bank.

y 2002 On June 13, 2002 Pakistan's Privatization Commission announced that the Government of Pakistan had granted the AgaKhan Fund for Economic Development (AKFED), a subsidiary of the Aga Khan Development Network , rights to 51% of the

shareholding in HBL, against an investment of PKR 22.409 billion ( USD 389 million).

y HBL's UK operation came close to being shut down due to regulatory issues with the Financial Services Authority. The issuewas resolved by converting the operations to a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its 6 branches and Allied its 4), into a new bank, called Habib-Allied International Bank, in whichHabib Bank has a 90.5 percent shareholding, while Allied Bank has 9.5 percent. Simultaneously with the transfer of business

to the new bank, both Allied and Habib Bank close down all independent operations in the UK.

y 2003 HBL received permission to open a branch in Afghanistan .y 2004 On February 26, the Government of Pakistan handed over management control of Habib Bank to AKFED. The Board of

Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO andthree Government of Pakistan nominees.

y 2006 HBL sold the operations that it had established in Fiji in 1991 to Bank of South Pacific .y 2009 HBL was granted permission to open Remnibi accounts in China. It already has training and shareholding arrangements

with Urumqi Commercial Bank.

ControversyHabib bank has long been scrutinized by intelligence officials monitoring terrorist money flows.On July 18, 2007 , Mariane Pearl , the widow of Wall Street Journal reporter Daniel Pearl , filed a lawsuit against Habib Bank Ltd over the2002 abduction, torture and murder of her husband. The pending lawsuit alleges the bank and its subsidiaries knowingly conductedfinancial transactions and provided account services on behalf of Al Akhtar Trust, a Pakistani based charity trust. Al Akhtar Trustsaccounts have been used to provide financial support to terrorists. However, HBL claims to have frozen Al Akhtar Trusts accountsseveral years before Daniel Pearls abduction.On October 24, 2007 , Pearl's lawsuit against HBL was formally dropped. Lawyers for Mariane Pearl noted that Habib Bank Limited andthe other defendants in the case had not answered the lawsuit filed in July (although Habib Bank Limited had denied ever supportingterrorism), but they otherwise did not explain their reason for dropping the action. [ The U.S. Federal Reserve Board and the New York State Banking Department criticized Habib Bank Limited for failing to address

deficiencies in its compliance with U.S. anti-money laundering laws. After the U.S. Federal Reserve Board threatened formal charges, though none were filed, Habib Bank Limitedagreed to strengthen the banks compliance. More specifically, the Fed ordered HBL to strengthen its transaction monitoring systemsand the filing of "suspicious activity reports" on transactions that do not fit the routine business patterns of the bank's customer base.HR PracticesCompensationCompensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensationmay achieve several purposes assisting in recruitment, job performance, and job satisfaction.Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may beadjusted according the business needs, goals, and available resources.Compensation may be used to:

y Recruit and retain qualified employees. y Increase or maintain morale/satisfaction.y Reward and encourage peak performance.y Achieve internal and external equity.y Reduce turnover and encourage company loyalty.y Modify (through negotiations) practices of unions.


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Recruitment and retention of qualified employees is a common goal shared by many employers. To some extent, the availability andcost of qualified applicants for open positions is determined by market factors beyond the control of the employer. While an employer may set compensation levels for new hires and advertize those salary ranges, it does so in the context of other employers seeking tohire from the same applicant pool.Morale and job satisfaction are affected by compensation. Often there is a balance (equity) that must be reached between the monetaryvalue the employer is willing to pay and the sentiments of worth felt be the employee. In an attempt to save money, employers may optto freeze salaries or salary levels at the expense of satisfaction and morale. Conversely, an employer wishing to reduce employeeturnover may seek to increase salaries and salary levels.Compensation may also be used as a reward for exceptional job performance. Examples of such plans include: bonuses, commissions,stock, and profit sharing, gain sharing.Compensation will be perceived by employees as fair if based on systematic components. Various compensation systems havedeveloped to determine the value of positions.These systems utilize many similar components including job descriptions, salary ranges/structures, and written procedures .The components of a compensation system include:

y Jo b Descripti o ns A critical component of both compensation and selection systems, job descriptions define in writing theresponsibilities, requirements, functions, duties, location, environment, conditions, and other aspects of jobs. Descriptions maybe developed for jobs individually or for entire job families.

y Jo b Analysis The process of analyzing jobs from which job descriptions are developed. Job analysis techniques include theuse of interviews, questionnaires, and observation.

y Jo b Evaluati o n A system for comparing jobs for the purpose of determining appropriate compensation levels for individual jobs or job elements. There are four main techniques: Ranking , Classification , Factor Comparison , and Point Method .

y P ay Structures Useful for standardizing compensation practices. Most pay structures include several grades with each gradecontaining a minimum salary/wage and either step increments or grade range. Step increments are common with unionpositions where the pay for each job is pre-determined through collective bargaining.

y Salary Surveys Collections of salary and market data. May include average salaries, inflation indicators, cost of livingindicators, salary budget averages. Companies may purchase results of surveys conducted by survey vendors or may conducttheir own salary surveys. When purchasing the results of salary surveys conducted by other vendors, note that surveys maybe conducted within a specific industry or across industries as well as within one geographical region or across differentgeographical regions. Know which industry or geographic location the salary results pertain to before comparing the results toyour company.

y P o licies and Regulati o ns

Different types of compensation include:

y Base Pay y Commissionsy Overtime Payy Bonuses, Profit Sharing, Merit Payy Stock Optionsy Travel/Meal/Housing Allowancey Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...

Performance appraisalP erf o rmance appraisal , also known as empl o yee appraisal , is a method by which the job performance of an employee is evaluated(generally in terms of quality , quantity , cost and time ). Performance appraisal is a part of career development .Performance appraisals are regular reviews of employee performance within organizations Generally, the aims of a performance appraisal are to:

y Give feedback on performance to employees. y Identify employee training needs.y Document criteria used to allocate organizational rewards .y Form a basis for personnel decisions: salary increases, promotions , disciplinary actions , etc.y

Provide the opportunity for organizational diagnosis and development.y Facilitate communication between employee and administrationy Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score anindividual against a number of objectives /attributes. In some companies, employees receive assessments from their manager , peers,subordinates and customers while also performing a self assessment. This is known as 360 appraisal forms good communication


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patternsThe most popular methods that are being used as performance appraisal process are:

y Management by objectives y 360 degree appraisal y Behavioral Observation Scale y Behaviorally Anchored Rating Scale

Trait based systems, which rely on factors such as integrity and conscientiousness , are also commonly used by businesses. Thescientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. Thereasons for this are two-fold:1) Because trait based systems are by definition based on personality traits , they make it difficult for a manager to provide feedbackthat can cause positive change in employee performance. This is caused by the fact that personality dimensions are for the mostpart static , and while an employee can change a specific behavior they cannot change their personality . For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still havelow integrity and are likely to lie again when the threat of being caught is gone.2) Trait based systems, because they are vague, are more easily influenced by office politics , causing them to be less reliable as asource of information on an employee's true performance. The vagueness of these instruments allows managers to fill them out basedon who they want to/feel should get a raise, rather than basing scores on specific behaviors employees should/should not be engagingin. These systems are also more likely to leave a company open to discrimination claims because a manager canmake biased decisions without having to back them up with specific behavioral information.In the PTF Report it was claimed that although annual Reports by ministries and departments are obligatory, they are hardly ever prepared and submitted to government, and where they, they are scanty and hardly confirms with any standards, either in terms of contents or format. The recommendation was that there should be target setting by ministries where concrete and measurableachievement can be inferred (PTF Report Section 10 Sub10.1).

A number of researchers have reported that HR practices are positively linked with organisational and employee performances. Thefocus and thrust of these studies have been towards developed countries. Little research has been done to test the HR performancelink in developing countries like Pakistan.Our study was an attempt to test the relationship between HR practices and employee performance in Pakistans banking sector. Themanagement of Habib Bank Limited is also emphasizing the growth and development of its bankers with various initiatives.In this situation it is important to find out the determinants which can enhance the employee performance in Habib Bank Limited.

The objective of this study was to facilitate the decision makers in Habib Bank Limited across Pakistan to follow the HR practices whichcan improve the performance of Habib Bank Limited employees.


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Theoretical Framework

Review of LiteratureThere are number of HR practices that could be tested in connection with employee performance. A number of research articles hadalready been publishede.g., The Impact of Human Resource Management and Work Climate on Organizational Performance by Garry A. Gelade and Mark Ivery [1] The Effect of Human Resource Management Practices on MNC Subsidiary Performance in Russia by CARL F. FEY [2] The Impact of Human Resource Management Practices on Turnover, Productivity and Corporate Financial Performance by Mark A.Huselid [3]

How HR & Training Practices Can Boost Worker Performance (IOMAs Report on Managing Training and Development)[4]

Human Resource Practices and Organisational Performance: Can the HRM-performance linkage be explained by the cooperativebehaviours of employees? By Dr. Mattijs Lambooij [5] The impact of HR practices on the performance of business units by Patrick M. Wright, Timothy M. Gardner and Lisa M. Moynihan [6] The Impact of Human Resource Management Practices on the Performance of European Firms by Paul Gooderham, Kristen Ringdaland Emma Parry [7] Human Resource Strategy to Improve Organisational Performance: A Route for British Firms by Fang Lee Cooke [8] Human Resource Management, Organizational Performance and Employee Well-Being by David Guest [9] Rated to exhaustion? Reaction to performance appraisal processes by Brown M. and Benson J. [10] Performance appraisal systems: determinants and change by Brown M and Heywood J. [11] Equity-based compensation for employees: firm performance and determinants by Frye M. B [12] The importance of HR practices and workplace trust in achieving superior performance: a study of public-sector organizations byGould Williams J. [13]

Human Resource Management, Corporate Performance and Employee Wellbeing: Building the Worker into HRM by Guest D. [14] Challenges and prospects of HRM in developing countries: testing the HRM-performance link in Eritrean civil service by Teseema &Soeters [15]

HR PracticesThere are number of HR practices that could be tested in connection with employee performance. Teseema & Soeters (2006) havestudied eight HR practices and their relationship with perceived employee performance. These eight practices include recruitment andselection practices, placement practices, training practices, compensation practices, employee performance evaluation practices,promotion practices, grievance procedure and pension or social security. Huselid (1995) used eleven HRM practices in his study whichare personnel selection, performance appraisal, incentive compensation, job design, grievance procedures, information sharing,attitude assessment, labor-management participation, recruitment efforts, employee training and promotion criteria. This studyexamines the relationship between three HR practices i.e. compensation, promotion and performance evaluation and perceivedemployee performance. Pakistan is a developing country with very low per capita income and above three practices which have arelatively direct impact on financial earnings and social status of an individual may be considered the major determinants of employeesperformance. This is the reason these practices have been selected for this study.C o mpensati o n P ractices Frye (2004) examined the relationship between equity based compensation and firm performance and found positive relationship


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between the two. He argued that for human capital intensive firms compensation plays a crucial role in attracting and retaining highlyskilled employees. As banks are capital intensive organizations, compensation practices of a bank can be of great help in hiring andkeeping hold of highly skilled and competent bankers. Incentive pay plans positively and substantially affect performance of workers if combined with innovative work practices like flexible job design, employee participation in problem-solving teams, training to provideworkers with multiple skills, extensive screening and communication and employment security (Ichniowski et al., 1997). Highperformance work practices (including compensation) have a statistically significant relationship with employee outcomes and corporatefinancial performance (Huselid, 1995). Significantly positive correlation has been reported between compensation practices andperceived employee performance by Teseema & Soeters (2006). On the basis of above mentioned literature and arguments it can besafely assumed that compensation practices are correlated with the performance of employees. However the relationship needs to betested in banks of Pakistan.H1: Compensation practices are significantly and positively related with perceived performance of banks in Pakistan.P r o m o ti o n P ractices Financially successful companies like HP (Hewlett-Packard) promote and develop from within (Truss, 2001). Teseema & Soeters(2006) found significantly positive correlation between promotion practices and perceived employee performance, however HRoutcomes was used as mediating variable. HR practices including vacancies filled from within have been found positively correlatedwith work satisfaction and life satisfaction with values 0.24 (P=


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The demographics are not used in the present study to find out their relationship with employee performance. The objective of Table isto show composition of respondents to have a better understanding about their response and results for present study. Therespondents are male. Majority of the respondents hold a Bachelor degree which at present is the minimum requirement to become abanker. The martial status of the respondents is an important demographic in the present study as having a married life and childrenincrease responsibility on individuals and mostly work life conflict situation arises when there is an imbalance between work and familylife.

EP PP CP PEP Mean Agree 133 61 122 143 2.25

Disagree 31 122 51 41 1.36Neutral 6 21 31 20 0.33

EP PP CP PEP MeanAgree 65% 30% 60% 70% -Disagree 31% 60% 25% 20% -Neutral 4% 10% 15% 10% -SD= standard Deviation, EP= Employee Performance, CP= Compensation Practices, PP= Promotion Practices, PEP= PerformanceEvaluation Practices


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ConclusionThe impact of HR practices (Compensation Practice, Promotion Practice, and Performance Evaluation System) on the employee of HBL, have given us a chance to conclude that;

1. The criteria of performance quantification lacks skills & techniques which is effecting the performance of employee inHBL

2. The pay difference between the different hierarchical levels is a frustrated factor among the employees of HBL3. The presence of bureaucracy system is effecting the performance of employee4. Career path is not properly defined5. Job security is a major factor of dissatisfaction6. Job timing hours increase turnover 7. At regional level responsibilities are given instead of authority, which is affecting promotion policies and performance

evaluation practice.8. Delegation of authority lacks which promotes subjectivity instead of objectivity9. HR department lacks professionals10. The low morale of upper management affecting the overall efficiency of the employees of HBL11. Compensation Discrimination was observed

Recommendations The delegation of authority should be adopt in HBL Objectivity should be promoted instead of Subjectivity Performance quantification methods should be improved and should and includes better techniques and skills Better Career Paths should be defined to the employee of HBL There should be less Pay Scale difference between the different Hierarchical level in HBL Promotion Policy should be revised and should include less hierarchical level. Specialized HR Specialist should be hired at top level HBL needs a separate HR department at regional level as well. There should be a less span of control. Compensation Discrimination should be avoided it will provide motivated employees to HBL Eid bonuses, hospital allowances and Petrol Ceiling should be separated from monthly Pays


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References1. www.sirim.my/techinfo/p1/management/jan-feb05 2. www.leeds.ac.uk/esrcfutureofwork/downloads/workingpaperdownloads/paper9.pdf 3. www.chrs.rutgers.edu/pub-documents/huselid_12.pdf 4. www.academic- journals.org/cmr/cmr%20papers/(vol%2003%20no%2003)3%20pages/20233-253.pdf 5. www.enap.gov.br/mesa_redonda/download/daley_vasu.mpsa02-ppm.pdf 6. www.blackwellpublishing.com/pdf/wrightetal.pdf 7. www.ukcbs.dk/content/download/48791/703547/file/gooderhamdringdalparry.pdf 8. www.business_analytic.co.uk/article-hrm.pdf 9. www.ibam.com/pubs/jbam/articles/vol10/no1/jbam_10_1_6.pdf 10. www.ferrykoster.nl/pdf/managementrevue.pdf 11. www.hec.ca/gresi/document/cahier0101.pdf 12. www.bc.edu/~jonese1/articles/rynes_AME_2002.pdf 13. www.Swoba.hhs.se/hastba/papers/hastba2000-006.pdf 14. www.bc.edu/~jonese1/articles/sttc_PRC_2004.pdf 15. www.blackwellpublishing.com/pdf/articles/httc/tel.pdf

Questi o nnaire

Section 1Please tick the appropriate answer or fill in the box

1. What is your Designation?

1. How long you have been employed in to this Bank (years)

1. What is your highest qualification?

MatriculationIntermediateBachelor MastersM.Phil/MSDoctoral4. What is your native language?UrduEnglish

PunjabiSindhiPushtoBalochiSairikiOthers5. What is your Martial Status?MarriedUn-married5a. What is your Gender?Male

Female

1. What is your age?

Secti o n: 2E mpl o yee perf o rmance 7. I am satisfied with my existing JobStrongly Disagree Disagree Neutral Agree Strongly agree


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1 2 3 4 58. The working environment is comfortableStrongly Disagree Disagree Neutral Agree Strongly agree1 2 3 4 5Secti o n: 3C o mpensati o n practices 9. Compensation system communicate your outputStrongly Disagree Disagree Neutral Agree Strongly agree1 2 3 4 510. Compensation system is enough to meet basic needsStrongly Disagree Disagree Neutral Agree Strongly agree1 2 3 4 5

17. I am satisfied with PEPStrongly Disagree Disagree Neutral Agree Strongly agree1 2 3 4 5

18. Performance evaluation has a lot to do with my salaryStrongly Disagree Disagree Neutral Agree Strongly agree1 2 3 4 5Secti o n: 5P r o m o ti o n practices 19. Promotion policy is satisfactory

Strongly Disagree Disagree Neutral yAgree Strongly agree

1 2 3 4 520. Provision of Priority to merit in PromotionStrongly Disagree Disagree Neutral Agree Strongly agree1 2 3 4 5

Posted in: Banks and Financial Institutions ,Human Resource Management (HRM)

2) http://ivythesis.typepad.com/term_paper_topics/2010/10/essay-on-hr-practices-in-pakistan.html

3) http://www.chillibreeze.com/articles_various/Human-resources2.asp

HR in Indian Retail

chillibreeze writer Ramadevi Srinivasan

The Indian Retail Industry stood at a value of a whooping US $330 billion in 2007 with the likes of Reli ance Retail and Wal-mart joining theconglomerates from inside and outside the country. It i s estimated that the retail sector will reach around US $600 billion by the turn of this decade.Significantly retail industry contributes about 10% to the GDP of India, and i t is the largest source of employment after agriculture in the country.

S cope for employment opportunities:

It is small wonder then that retail sector has open the floodgates of employment opportunities to the Indian youth. Statistics reveal that the organizedretail sector has increasing employee base burgeoning from 5.4 lakh to an awesome 16 lakh over the l ast couple of years.

About 11.5 lakh jobs in the organized retail sector and 2 million jobs in the unorganized retail sector will be thrown open by 2010 what with the li kes of key players in including Pantaloon India, RPG Retail, Lifestyle, Wills lifestyle, Shoppers shop, Trent Ltd, Crosswords Bookstores Ltd., Ebony Retail Ltd.and Reliance Retail Ltd. And the retail sector has abundant opportunities for part time positions as well due to the long working hours.

Compensation packages:

In general, hefty salary packages with attractive perks and allowances are offered by the employers luring the talent of this country into the retailindustry. Surprisingly the average salary of even a fresher could be up to Rs.20,000/- with an assured average salary hike of 16% per annum. In someorganizations the growth in salary ranges from Rs.60,000/- to Rs.70,000/- annually.


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HR practices in some of the most successful retail verticals in India:

Apparels: Pantaloon India: Here is a retail giant which hires at least 250 MBAs for operations and merchandising profiles. The candidates go throughan induction period and a short training thereon. Individuals are allotted projects for the next five months under the supervision of project guides. Theyare placed in suitable positions thereafter, with progressive authority and responsibility.

Indian software industry: The challenge for HR professionals i n software industry is sheer shortage of high intellectual human capital both innumbers and skills. Recruitment of world class workforce and their retention is a serious challenge posed in HR industry. The yawning gap between thedemand and supply of professionals has increased the cost of delivering the technology. The incentive compensation is based on performance keepingthe long term organizational objectives in mind. Optimized compensation packages are offered as a motivator for retention of manpower.

Food and grocery: It is estimated that the food and grocery market in India is an astounding $236 billion, and it is the sixth l argest grocery market inthe world today. No doubt that human resources are an important asset in this food and grocery retail industry. Many top companies have made HR astrategic partner in their operations. One famous example is Nestle, the global giant in consumer packaged goods. Nestle has a strong internallydeveloped employee backing which gives a major push to the company's lead position in the retail industry.

Attrition rates and retention of personnel:

There seems to be a high l evel of attrition in the retail sector which is almost 40% according to a recent study. Front end jobs are facing an attritionrate as high as even 80%.

Under the present circumstances, retention and motivation of personnel has become the major concern of HR. A congenial working atmosphere, supportlearning and training facilities, a highly competitive pay structure are some of the effective retention practices followed by the retail sector.

While money is the main attraction for freshers and starters, career satisfaction is the main reason with experienced personals. Assigning the "rightproject to the right person" is the organizational motto these days with companies setting up Manpower Allocation Cells (MAC) to carry out this agenda.

Looking at the current scenario, it could be said that there is an acute shortage of middle level management professionals in the Indian Retail Industry.The current trend is to hire from a smaller organization tempting the incumbent with a better pay package. It is imperative that suitable talent be hiredin various areas such as technology, supply chain, logistics, product development and marketing in order to stay abreast of the hectic race for successamong MNCs.

The call is for HR practitioners to play a more proactive and prominent role in order to retain the high tech skill ed employees who are constantly lookingfor greater gains and prospects in their work. This i s the real HR chal lenge to retain the "knowledge workers" and "knowledgeable workers" byintroducing new processes and procedures and still ride high in implementing organizational effectiveness.

Chillibreeze's disclaimer: The views and opinions expressed in this article are those of the author(s) and do not reflect the views of Chillibreeze as a company. Chillibreeze has a strict anti-plagiarism policy. Please contact us to report any copyright issues related to this article.

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