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PROJECT REPORT
ON
“A STUDY OF HR PRACTICES AT AIRTEL”
Submitted In Partial Fulfillment of the requirement of
Bachelor of Business Administration (BBA)
Guru Gobind Singh Indraprastha University, New Delhi
UNDER THE GUIDANCE OF: SUBMITTED BY:
ABHINAV MAHAJAN
05124001709 BBA(GEN) 5th semester
SESSION: 2009-2012
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STUDENT DECLARATION
I here by certify that the project report entitled on “A STUDY OF HR PRACTICES AT
AIRTEL” Submitted in partial fulfillment of the requirement for the award degree of
Bachelor in Business Administration to GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY ,DELHI (India) is my original work and not submitted or the award of
any other degree, diploma, fellowship, or any other similar title or prizes anywhere else.
ABHINAV MAHAJAN05124001709
BBA(GEN) 5th semester
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ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report. I am grateful to all of them for their
time, energy and wisdom.
Getting a project ready requires the work and effort of many people. I would like all
those who have contributed in completing this project. First of all, I would like to send
my sincere thanks to MISS for his helpful hand in the completion of my
project.
ABHINAV MAHAJAN
05124001709 BBA(GEN) 5th semester
)
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CONTENT
Chapter 1: Introduction
Chapter 2: Company profile
Chapter 3: Theoretical Framework
1. Human Resource Planning2. Recruitment
3. Selection
4. Training and Development5. Performance Appraisal System
6. Compensation
Chapter 4: A Word About HR Practices at Airtel
1. HR Practices at Airtel2. The DNA of Airtel
3. Employment or Personnel Planning
4. Right-sizing
Chapter 5: Objective
Chapter 6: Research Methodology
Chapter 7: Analysis
Chapter 8: Conclusion
Chapter 9: Limitations
Bibliography
Annexure
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Chapter-1
INTRODUCTION
Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to
becoming the largest manufacturer and exporter of world class telecom terminals under
its 'Beetel' brand, Bharti has created a significant position for itself in the global
telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of India's
finest companies, and its flagship brand 'Airtel', has over 4018 million customers across
the length and breadth of India.
While a joint venture with TeleTech Inc., USA marked Bharti‟s successful foray into the
Customer Management Services business, Bharti Enterprises‟ dynamic diversification
has continued with the company venturing into telecom software development. Recently,
Bharti has successfully launched an international venture with EL Rothschild Group
owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets
in Europe and USA.
Bharti Tele-Ventures is one of India's leading private sector providers of
telecommunications services based on an aggregate of 18,616,715 customers as of
January 31, 2006, consisting of 40 MILLION GSM mobile and 1,243,545 broadband &
telephone customers. The company is the only telecom operator in the country to have an
all India footprint with mobile operations in all the 23-telecom circles of India. The
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company is the largest mobile service provider in the country, based on the number of
customers. The company also provides broadband & telephone in 15 circles.
The company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing
station at Chennai, which connects the submarine cable connecting Chennai and
Singapore. The company provides reliable end-to-end data and enterprise solutions to the
top corporate customers by leveraging its nationwide fiber optic backbone, last mile
connectivity in mobile and broadband & telephone services, VSATs, ISP and
international bandwidth access through the gateways and landing station.
Too many opportunities, higher growth potentials, most efficient and economic use of
resources and higher profitability is the present core theme of the business of Indian
Telecom Industry. Certainly, the of Indian Telecom Industry is booming up, but the
liberalization of economy has increased the intensity of competition to such an extent that
the major players in order to remain competitive, are putting up continuous effort to
increase their resource strength to generate superior performance and gain comparative
advantage of Indian Telecom Industry being a people based industry, exhibits a clear
dependence on the Human Capital for superior performance. Which is why all most all
the major players in the industry have a strong Human Resource Base and Strong Human
Resource Development Climate. The common goal is to achieve better performance and
productivity through the efficient use of The Human Resource.
In simple terms, HRP is understood as the process of forecasting an organization‟s future
demand for, and supply of the right type of people in the right number. It is only after this
that the HRM department can initiate a recruitment and selection process. HRP is a sub-
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system in the total organizational planning. HRP facilitates the realization of the
company‟s objectives by providing the right type and the right number of personnel.
HRP, then, is like materials planning that estimates the type and quantity of the materials
and supplies needed to facilitate the manufacturing activities of the organization.
The Human Resources in Airtel are in fact are not resources – but an “Asset”. They call
them “Human Capital”. At Airtel , they believe in valuing people and realizing the
value of people. In Airtel the HR department is considered have the responsibility of job
analysis to be carried out for each job in the structure, on the basis of this analysis, the
best candidate fitting a job is selected. Sometimes if the necessity is felt for the need of
another post in the existing structure in the departments as well as within the factory also
then the HR dept plays a pivotal role in defining the necessity for such a post as well as
the final creation of the post. Moreover they also take care of the reverse process whereby
any post that may be felt was unnecessary may be completely dropped in consultation
with the top management. Sometimes they also may turn the centralized work pattern
followed in any particular dept into decentralized work structure.
Airtel has a culture of employee involvement and participative management. This leads
to enhancement of motivation. Employees of Airtel also bring to the forefront their
hidden talents and creative nature. This inculcates a feeling of belongingness and
ownership of the business. Therefore many HR innovative based practices which have
become a way of life at Airtel. Some of the practices have become very powerful and
many industries as well as business schools keenly request Airtel to share with them.
Airtel has received lot of recognition and awards from various professional bodies under
these HR practices.
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Chapter-2
COMPANY PROFILE
BHARTI ENTERPRISES
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti
Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail
Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully
launched an international venture with EL Rothschild Group to export fresh agri products
exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance
Company Ltd under a joint venture with AXA, world leader in financial protection and
wealth management.
Airtel comes to you from Bharti Airtel Limited, India‟s largest integrated and the first
private telecom services provider with a footprint in all the 23 telecom circles. Bharti
Airtel since its inception has been at the forefront of technology and has steered the
course of the telecom sector in the country with its world class products and services. The
businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU‟s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The
mobile business provides mobile & fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 94 cities. The Enterprise services provide end-to-end telecom
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solutions to corporate customers and national & international long distance services to
carriers. All these services are provided under the Airtel brand.
Business Divisions
Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the
largest mobile service provider in the country, based on the number of customers.
More
The group focuses on delivering telecommunications services as an integrated offering
including mobile, broadband & telephone, national and international long distance and
data connectivity services to corporate, small and medium scale enterprises.
More
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The group offers high speed broadband internet with a best in class network. With
Landline services in 94 cities we help you stay in touch with your friends & family and
the world.
More
The Company compliments its mobile and broadband & telephone services with national
and international long distance services. It has over 35,016 route kilometers of optic fibre
on its national long distance network. For international connectivity to east, it has a
submarine cable landing station at. For international connectivity to the west, the
Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-
ME-WE-4) consortium along with 15 other global telecom operators.
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Address And Phone Number
Bharti cellular limited
(A Bharti Enterprise )
Office= D-184, Okhla Industrial Area ,Phase 1,New Delhi 110020
Telephone Number : 9873627304,Fax 51611487
Regd Office : Qutab Ambience ,H-5-12,Mehrauli Road ,New Delhi 110030
Website :www.artelworld.com
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Vision
By 2010 Airtel will be the most admired brand in India:
• Loved by more customers
• Targeted by top talent
• Benchmarked by more businesses.
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Bharti·s Mission
To be globally admired for telecom services that delight
customers .
We will meet global standards for telecom services that delight
customersthrough , Customer Service Focus , Empowered Employees
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Product range of the company
The company is a part of Bharti Enterprises, and is India's leading
provider of telecommunications services. The businesses at Bharti
Airtel have beenstructured into three individual strategic business
units (SBU¶s) - mobileservices, broadband & telephone services
(B&T) & enterprise services. Themobile services group provides
GSM mobile services across India in 23telecom circles, while the
B&T business group provides broadband &telephone services in
90 cities. The Enterprise services group has two sub-units - carriers
(long distance services) and services to corporates. All
theseservices are provided under the Airtel brand.Our Services:
Voice Services
Mobile Services
Satellite Services
Managed Data and Internet Services
Managed e-Data Services
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ORGANISATION STRUCTURE OF AIRTEL
As an outcome of a restructuring exercise conducted within the company; a new dynamic
organizational structure has emerged; with realigned roles, responsibilities and reporting
relationships of Bharti‟s key team players. With effect from September 01, 2004, this role
model will enable continued improvement in the delivery of the Group‟s strategic vision.
Board Of Directors
Audit Committee
Human Resource (HR)/
Remuneration Committee
Human Resource Committee
ESOP Compensation Committee
Investors Grievance Committee
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Hierarchy of the airtel bharti company
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Market Share Of The Company
GSM MARKET SHARE
As per COAI’s March data, Vodafone added 36 lakh users and emerged as the number
1 player in mobile subscriber additions.
Airtel added 30 lakh subscribers in March, out of 1.39 crore GSM subscribers added in
the month.
Here are the rounded up market share numbers (only for GSM players):
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Position of the Company
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Chapter-3
THEORETICAL FRAMEWORK
HUMAN RESOURCE PLANNING
In simple terms, HRP is understood as the process of forecasting an organization‟s future
demand for, and supply of the right type of people in the right number. It is only after this
that the HRM department can initiate a recruitment and selection process. HRP is a sub-
system in the total organizational planning. HRP facilitates the realization of the
company‟s objectives by providing the right type and the right number of personnel.
HRP, then, is like materials planning that estimates the type and quantity of the materials
and supplies needed to facilitate the manufacturing activities of the organization.
HRP is also called manpower planning, personnel planning, or employment planning.
Human resource planning is a sequential process embodying the following five elements:
1. Inputs into human resource planning process
2. Analysis of existing human resources
3. Forecast of future human resource needs
4. Implementation of human resource plan
5. Evaluation and redesign of human resource plan
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FUNCTIONS OF HUMAN RESOURCE PLANNING:
There are three functions of human resource planning that can be identified based on the
activities performed by manpower managers. They are:
1. Identification of skills required to accomplish organizational goals and objectives,
2. Making available these skills over a period of time in view of changing
requirements, and
3. Utilization of skills available to the best satisfaction of the participants and the
maximum advantage of the organization in the context of their changing
expectations.
Environment
Organizational
Ob ectives and Policies
HR Need Forecast HR Supply Forecast
HR Programming
Control and Evaluation
Of Pro ramme
HRP Implementation
Surplus
Restricted Hiring
Reduced HoursVRS, La Off etc.
ShortageRecruitment and
Selection
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The HRP Planning Process
Techniques for Determining Human Resource Requirements:
I. Job Analysis: it is the process of determining the tasks involved in the job and
personal qualities of the individuals required to perform the job. It helps in determining
qualitative manpower requirements.
1. Job description
2. Job specification
JOB ANALYSIS: A Process Of Obtaining All Pertinent Job Facts
Job Description: a statement
consisting of
•Job title
•Location
•Job summary
•Duties
•Machines, tools, and equipment
•Materials and forms used
•Supervision given or received
•Working conditions
•Hazards
Job Specification: A statement of human
qualifications necessary to do the job:
•Education
•Experience
•Training
•Judgement
•Initiative
•Physical effort
•Responsibilities
•Communication skills
•Emotional characteristics
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JOB ANALYSIS PROCESS
Strategic Choices
Gather Information
Process Information
Job Description
Job Specification
Uses Of Job Description And Job
SPECIFICATION:
•Personnel Planning
•Performance Appraisal
•Hiring
•Training And Development
•Job Evaluation And Compensation
•Health And Safety
•Employee Discipline
•Work Scheduling
•Career Planning
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STRATEGIC CHOICES:
1. Extent of employee involvement in job analysis
2. Level of details of the analysis
3. Timing and frequency of analysis
4. Past-oriented vs future-oriented job analysis
INFORMATION GATHERING:
- What type of data is to be collected?
- What methods are to be employed for data collection?
- Who should collect the data?
METHODS OF COLLECTING JOB DATA
1. Observation method
2. Interviews
3. Questionnaires
4. Checklists
5. Technical conferences, and
6. Diary
II. Time and motion study: Time study provides a basis for setting „standard‟ times and
accordingly for linking quantitative manpower requirements. Two methods are used for
timing jobs. These are micro-motion pictures and the use of a stopwatch.
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Iii. Historic average technique and manning tables: though historic average technique
is also one of the techniques to determine the quantitative manpower requirement, time
analysis is more in practice in the organizations.
RECRUITMENT
It is the process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted. The
result is a pool of applicants from which new employees are selected.
Purposes and importance:
1. Determine the present and future requirements of the organization in conjunction
with its personnel planning and job-analysis activities.
2. Increase the pool of job candidates at minimum cost
3. Help increase the success rate of the selection process by reducing the no. of
under-qualified or over-qualified applicants.
4. Help reduce the probability that job applicants, once recruited and selected, will
leave the organization only after a short period of time.
5. Meet the organization‟s legal and social obligations regarding the composition of
its workforce.
6. Begin identifying and preparing potential job applicants who will be appropriate
candidates.
7. Increase organizational and individual effectiveness in the short-term and long-
term.
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8. Evaluate the effectiveness of various recruiting techniques and sources for all
types of job applicants.
RECRUITMENT PROCESS
5 STAGES:
1. Planning
2. Strategy development
3. Searching
4. Screening
5. Evaluation and control
Recruitment Planning:
- No. of contacts
- Types of contacts
Strategy Development:
- „Make‟ or „buy‟
- Technological sophistication
- Where to look
- How to look
Internal Recruitment
- Present employees
- Employee referrals
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External Recruitment:
- Professional or trade associations
- Advertisements
- Employee exchanges
- Campus recruitment
- Walk-ins, write-ins, and talk-ins
- Consultants
- Contractors
- Displaced persons
- Radio and television
- Acquisitions and mergers
- Competitors
- International recruiting
SEARCHING:
- Source activation
- selling
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SELECTION
Selection is the process of picking individuals (out of the pool of job applicants) with
requisite qualifications and competence to fill jobs in the organization.
Recruitment and selection are two crucial steps in HR process and are often used
interchangeably. There is however, a fine distinction between the two steps. While
recruitment refers to the process of identifying and encouraging prospective employees to
apply for jobs, selection is concerned with picking the right candidate from a pool of
applicants. Recruitment is said to be positive in its approach as it seeks to attract as many
candidates as possible. Selection, on the other hand, is negative in its application
inasmuch as it seeks to eliminate as many unqualified applicants as possible to identify
the right candidate.
SELECTION PROCESS:
BARRIERS TO EFFECTIVE SELECTION
The main objective of the selection is to hire people having competence and commitment.
This objective is often defeated because of certain barriers. These barriers are perception,
fairness, validity, reliability and pressure
Perception
Our views are highly personalized. We all perceive the world differently. Therefore our
limited perceptual ability is obviously a stumbling block to the objective and rational
selection of people.
Fairness
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Fairness in selection means that no individual should be discriminated against on the
basis of religion, region, race or gender.
Validity
Validity means that tests which are used as means of selection and it helps in predicting
job performance of an incumbent. A test that has been validated can differentiate between
the employees who can perform well and those who will not.
Reliability
A reliable method is one which will produce consistent results when repeated in similar
situations. Like a validated test, a reliable test may fail to predict the job performance
with precision.
Pressure
Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends and
peers to select particular candidates.
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TRAINING AND DEVELOPMENT
Defining Training
Training is the act of increasing the knowledge and skills of an employee for doing a
particular job. The major outcome of training is learning. A trainee learns new habits;
refined skills and useful knowledge during the training that helps him improve
performance. Training enables an employee to do his present job more efficiently and
prepare himself for a higher job.
Features Of Training
Increases knowledge and skills for doing a job
Bridges the gap between job needs and employee skills
Job oriented process, vocational in nature
Short term activity designed essentially for operatives
Training often has been referred to as teaching specific skills and behaviour.
Development in contrast is considered to be more general than training and more oriented
to individual needs in addition to organisational needs and it is most often aimed toward
management people.
Training is meant for operatives and development is meant for managers.
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Objectives Of Training
To impart the basic knowledge and skill to the new entrants and enable them to
perform their jobs well.
To equip the employee to meet the changing requirements of the job and the
organization
To teach the employees the new techniques and ways of performing the job or
operations
To prepare employees for higher level tasks and build up a second line of competent
managers.
A Systems Approach To Training
From the broadest perspective, the goal of training is to contribute to the organization‟s
overall goal. Training programs should be developed with this in mind. Managers should
keep a close eye on the organization goals and strategies and orient training accordingly.
To make certain investments in training and development have maximum impact on
individual and organizational performance, a systems approach to training should be
used. The systems approach involves four phases:
1. Needs Assessment
2. Program Design
3. Implementation
4. Evaluation
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THE TRAINING PROCESS
1. CONDUCTING THE NEEDS ASSESSMENT
Managers and HR staff should stay alert to the kinds of training that are needed, where
they are needed, who needs them. If workers consistently fail to achieve productivity
objectives, this might be a signal that training is needed. Likewise, if organizations
receive an excessive number of customer complaints, this too might suggest inadequate
training. To make certain that training is timely and focused on priority issues, managers
should approach needs assessment systematically by utilizing the three types of analysis.
1. ORGANIZATION ANALYSIS
The first step is needs assessment is identifying the broad forces that can influence
training needs. Organization analysis is an examination of the environment, strategies,
and resources of the organization to determine where training emphasis should be placed.
2. TASK ANALYSIS
Task analysis involves reviewing the job description and specification to identify the
activities performed in a particular job and the KRAs needed to perform them.
3. PERSON ANALYSIS
Person analysis involves determining which employees require training, and equally
important, which do not. In addition, person analysis helps managers determine what
prospective trainees are able to do when they enter training so that the programs can be
designed to emphasize the areas in which they are deficient.
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2: DESIGING THE TRAINING PROGRAM
TRAINEE READINESS AND MOTIVATION:
Two preconditions of learning affect the success of those who are to receive training:
readiness and motivation.
Trainee readiness refers to both maturity and experience factors in the trainee‟s
background. Prospective training should be screened to determine that they have the
background knowledge and skills necessary to absorb what will be presented to them.
The precondition of learning is trainee motivation. Individuals who are conscientious,
goal oriented, self-disciplined and persevering are more likely to perceive a link between
effort they put into training and higher performance on the job. By focusing on the
trainees themselves rather than on the trainer or trainee topic, managers can create a
training environment that is conducive to learning. Six strategies can be essential:
1. Use positive reinforcement
2. Eliminate threats and punishment
3. Be flexible
4. Have participants set personal goals
5. Design interesting instruction
6. Break down physical and psychological obstacles to learning
3: IMPLEMENTING THE TRAINING PROGRAMME
In order to organize various training methods, we will break then down them two primary
groups: those used for non-managerial employees and those used for managers.
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Training methods for non-managerial employees:
On the job training:
The most common method used for training non-managerial employees is on-the-job
training (OJT). In fact, one estimate suggests that organizations spend three to six times
more on OJT than on classroom training. OJT has the advantage of providing hands on
experience under normal working conditions and an opportunity for the trainer – a
manager or senior employee-to build good relationships with new employees.
Apprenticeship Training
It is an extension of OJT. With this method, individuals entering industry, particularly in
the skilled trades such as machinist, laboratory technician, or electrician, are given
through instruction and experience, both on and off the job I the practical and theoretical
aspects of the work.
Cooperative training, Internships and Governmental Training
Similar to apprenticeships, cooperative training programs combine practical on-the job
experience with formal classes. However the term „cooperative training‟ is typical ly used
in connection with high school and college programs that incorporate part or full time
experiences.
Many organizations including Fannie Mae, Burger King, Champion International, Pacific
Telesis Foundation, Cray Research and UNUM life insurance, have strong ties to public
schools and invest millions of dollars in educational programs.
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Classroom instruction
Beyond its pervasiveness in education, classroom training enables the maximum number
of trainees to be held by the minimum number of instructors. This method lends itself
particularly to training in the areas where information can be presented in lectures
demonstrations, films and videotapes or through computer instruction. Where it is not
possible to collect the videotapes, audiotapes can be very valuable.
Programmed instruction
One method of instruction that is particularly good for allowing individuals to work at
their own pace is programmed instruction. Programmed instruction – increasingly referred
to as self-directed learning-involves the use of books, manuals or computers to
breakdown subject matter content into highly organized, logical sequences that demand
continuous response on the part of the trainee. After being presented with the small
segment of information, the trainee is required to answer a question, either by writing it
on a response frame or by pushing a button. If the response is correct, the trainee is told
so and is presented with the next step in the material. If the response is incorrect, further
explanatory information is given and the employee is told to try again.
A major advantage of programmed instruction is that incorporates a number of the
established learning principles. With programmed instruction, training is individualized,
trainees are actively involved in the instructional process, and feedback and
reinforcement is immediate.
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Audiovisual methods
To teach skills and techniques for many production jobs, certain audiovisual devices can
be used. Other technologies such as CDs, videodiscs, and more recently, DVD, take
audiovisual technology further by providing trainees interactive capability.
Extending video technology, teleconferencing, or video conferencing allows an
instructional programme to be transmitted to many locations simultaneously and permits
immediate interaction among trainees. These methods are becoming quite powerful as
tools for bringing continuing distance education to life. For example, MIT.
Computer based training
CBT encompasses two distinct techniques: computer assisted instruction (CAI) computer
managed instruction (CMI). CAI system delivers training material directly through a
computer terminal in an interactive format. Computer makes it possible to provide drill
and practice, problem solving, simulation, gaming forms of instruction, and certain very
sophisticated forms of individualized tutorial instructions. At Airtel, this type of training
is confined only to imparting software usage training.
A CMI system is normally used in conjunction with CAI, there by providing an efficient
means of managing the training functions. CMI uses a computer to generate and score
tests and to determine the level of trainee proficiency. CMI systems can also track the
performance of the trainees and direct them to appropriate study material to meet their
specific needs.
A summary of the advantages include the following:
1 Learning is self-paced.
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2 Training comes to the employee.
3 Training is interactive.
4 New employees do not have to wait for scheduled training session.
5 Training can focus on specific needs as revealed by built-in tests.
6 Trainees can be referred to online help or written material.
7 It is easier to revise a computer program than to change classroom-training material.
8 Record keeping is facilitated.
9 The training can be cost effective if used for a large number of employees.
Simulation Method
It is an attempt to create a realistic decision-making environment for the trainee.
Simulation present likely problem situations and decision alternatives to the trainee.
Eg: activities of an organization may be simulated and the trainee may be asked to make
a decision in support of those activities. The results of those decisions are reported back
to the trainee with an explanation of what would have happened had they actually been
made in the workplace. The trainee learns from this feedback and improves his/her
subsequent simulation and work place decisions.
The more widely held simulation exercise is case study, role playing and vestibule
training.
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PERFORMANCE APPRAISAL SYSTEM
Performance appraisal is the method of evaluating the behavior of employees in the
work-spot, normally including both the quantitative and qualitative aspects of job
performance. It is a systematic and objective way of evaluating both work-related
behavior and potential of employees. It is a process that involves determining and
communicating to an employee how he or she is performing the job and ideally,
establishing a plan of improvement.
Performance appraisal is a broader term than Merit Rating. In the past, managers used to
focus on the traits of an employee while ranking him for promotions and salary increases.
Employee‟s traits such as honesty, dependability, drive, personality etc. were compared
with others and ranked or rated. The attempt was to find what the person has (traits)
rather than what he does (performance). This kind of performance appraisal system was
open to criticism because of the doubtful relationship between performance and mere
possession of certain traits.
Essential features of an appraisal system:
1. It is a systematic process.
2. It provides an objective description of an employee‟s job‟s relevant strengths and
weaknesses.
3. It tries to find out how well the employee is performing the job tries to establish a
plan for further improvement.
4. The appraisal is carried out periodically, according to definite plan.
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5. Performance appraisal is not job evaluation. It refers to well someone is doing an
assigned job, whereas job description finds out how much a job is worth to the
organization and what range of pay should be assigned to the job.
6. Performance system may be formal or informal.
Essential characteristics of an effective appraisal system:
1. Reliability and validity:
Appraisal system should provide consistent, reliable, and valid information, which can be
used to defend the organization – even in legal challenges. Appraisals must also satisfy
the condition of validity by measuring what they are supposed to measure.
2. Job relatedness:
The appraisal technique should measure the performance and provide information in job
related activities.
3. Standardization:
Appraisal forms, procedures, administration of techniques, ratings, etc. should be
standardized as appraisal decisions affect all employees of the group.
4. Practical viability:
The techniques should be practically viable to administer, possible to implement and
economical to undertake continuously.
5. Legal sanction:
Appraisals must meet the laws of the land. They must comply with provisions of various
acts relating to labor.
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6. Training to Appraisers:
Because appraisal is important and sometimes difficult, it would be useful to provide
training to appraisers viz., some insights and ideas on rating, documenting appraisals and
conducting appraisal interviews.
7. Open communication:
Most employees want to know how well they are performing the job. A good appraisal
system provides the needed feedback on a continuing basis. The appraisal system should
permit both parties to learn about the gaps and prepare themselves for future.
8. Employee access to results:
Employees should know the rules of the game. They should receive adequate feedback on
their performance. Permitting employees to review the results of their results allow them
to detect any errors that may have been made. If they disagree with the evaluation, they
can even challenge the same through formal channels.
9. Due process:
Formal procedures should be developed enable employees, who disagree with the
appraisal results to challenge the same. They must have the means for pursuing their
grievances and having them addressed objectively.
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Steps to be followed while introducing an efficient potential appraisal system:
1. Role descriptions:
Organizational roles and functions must be defined clearly. To this end, job descriptions
must be prepared for reach job.
2. Qualities needed to perform the roles:
Based on job descriptions, the roles to be played by the employees must be prepared (i.e.
technical, managerial jobs and behavioral dimensions)
3. Rating mechanisms:
Besides listing the functions and qualities, the potential appraisal system must list
mechanisms of judging the qualities of employees such as:
- Rating by others: The potential of a candidate could be rated by the immediate
supervisor who is acquainted with the candidate‟s work in the past, especially his
technical capabilities.
-Tests: Managerial and behavioral dimensions can be measured through a battery of
psychological tests.
-Games: Simulation games and exercises (assessment centre, business games, in-basket,
role-play etc.) could be used to uncover the potential of a candidate.
-Records: Performance records and ratings of a candidate on his previous job could be
examined carefully on various dimensions such as initiative, creativity, risk taking ability
etc., which might play a key role in discharging his duties in a new job.
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4. Organizing the system:
After covering the above preliminaries, he must set up a system that will allow the
introduction of the scheme smoothly giving answers some puzzling questions as:
How much weightage to merit in place of seniority in promotions?
How much weightage to each of the performance dimensions – technical, managerial,
behavioral qualities?
What are the mechanisms of assessing the individual on different indicators of his
potential and with what reliability?
5. Feedback:
The system must provide an opportunity for every employee to know the results of his
assessment. “He should be helped to understand the qualities actually required for
performing the role for which he thinks he has the potential, the mechanisms used by the
organizations to appraise his potential and the results of such an appraisal”.
Objectives of performance appraisal:
Compensation decisions
Promotion decisions
Training and development programs
Feedback
Personnel development.
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Who will appraise?
Supervisors
Peers
Subordinates
Self-appraisal
Users of services
Consultants
At Airtel, There are 3 levels :
Firstly, there is self appraisal. Secondly, Supervisor appraisal and thirdly,
Appraisal by functional head.
The performance appraisal process:
Establish performance standards
Communicate the standards
Measure actual performance
Compare actual performance with standards and discuss the appraisal
Taking corrective action, if necessary
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PERFORMANCE APRAISAL TECHNIQUES
Individual evaluation
methods
Multi-person evaluation
methodsOther methods
- Confidential report
- Essay evaluation
- Critical incidents
- Checklists
- Graphic rating scale
- Behaviorally
anchored rating scales
- Forced choice
method
- Management by
objectives
- Ranking
- Paired comparison
- Forced distribution
- Performance tests
- Field review technique
Methods of performance appraisal:
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Feedback:
WORKPLACE FEEDBACK:
The term workplace feedback implies two things:
Job performance: whether the employee is capably performing specific tasks that
have been assigned
Work-related behavior: the way the employee performs his tasks, whether he
speaks politely to customers and works cooperatively with other team members.
Norms to be followed by the appraiser and the appraisee while giving and receiving
feedback:
1. Adequate preparation: the process should be a continuous one. Informal/formal
meetings should take place every now and then to put the employee on the track.
One-to-one meetings should be conducted in an atmosphere of mutual trust,
understanding and friendship.
2. Describe behavior:
Precautions to be taken while assessing behavior:
Future-oriented
Goal-oriented
Listen to the recipient
Data-based feedback
Suggestive
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Reinforcement
Continuous
Need-based and solicited
3. Proper timing: Feedback must be well-timed. It should be given immediately after
the event has taken place.
4. Help both parties: to be effective the feedback should satisfy the needs of the
appraiser as well as the appraisee.
METHODS OF PERFORMANCE:
1. Traditional performance rating: it involves completion of a form by the immediate
supervisor of the individual who is being evaluated. In some cases, attempts are made to
accomplish the rating by a committee consisting of an immediate supervisor, the
supervisor‟s superior and one or more officers of the company who are familiar with the
ratee. The conventional rating form is designated as graphic rating or rating scale
incorporating several factors such as job knowledge, judgement, organizing ability,
dependability, creativity, dealing with people, delegation, leadership and personal
efficiency and others.
2. Newer rating methods
Rank-order procedure
Paired comparison system
Forced distribution procedure
Critical incident
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Field review technique
360 degree feedback:
Many firms have expanded the idea of upward feedback into “360 degree” feedback.
Ratings are collected „all around‟ an employee, from supervisors, subordinates, peers,
and internal or external customers. According to one study, 29% of the responding
employers already use 360-degree feedback also called multi-source assessment and
another 11% had plans to implement it. The feedback is generally used for development,
rather than for pay increases.
Management by objectives (MBO):
Management by objectives is described as the process in which the superior and the
subordinate managers of an organization jointly identify its common goals, define each
individuals‟ major areas of responsibility in terms of results expected of him and use
these measures as guides for operating the unit and assessing the contributions of each
members. MBO thus, represents more than an evaluation program and process.
MBO: KEY ELEMENTS:
1. Arranging organizational goals in a means-ends chain
Corporate goals functional goals work group task goals
2. Engaging in joint goal setting
3. Conducting periodic progress reviews, and
4. Conducting annual performance review.
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COMPENSATION
Definition
Wages have at least two connotations from the standpoints of employers and employees
in organizational settings. First, the employers perceive wages as a cost of their business
efforts and are keen to reduce labour cost per unit of output. Second, employees consider
wages as means for satisfying their needs in terms of expected standard. They desire to
receive at least as much remuneration as other individuals equipped with similar skills get
for doing similar work.
At Airtel, the bell curve system is followed in slabs based on KRA achievement as
below:
<90%----Poor contibutor
90%- 100%---Good contributor
100%-115%---Significat contributor
115% - 125% ---exceptional contributor
These KRAs are given in year beginning and checked mid-term based on KPIs(kep
Performance Indicators). These are also regularly monitored inmonthly reviews with
reasons.
Elements
There are seven elements or issues in wage and salary administration:
1. Pay levels relate to the problem as to whether the wage structure is high, average
or low.
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2. Internal pay structure relates to the hierarchy f pay rates, pay grades, and job
classification.
3. Individual pay system relates to the classification of individuals into job titles
and pay grades involving determination of how much compensation they should
be paid.
4. Payment by time relates to remuneration paid in terms of time spent on the job.
5. Fringe benefits and pay supplements in the form of insurance, pensions, paid
holidays, bonuses, profit sharing and allied factors.
6. Control of wages and salaries it is exerted by several measures such as a table of
organization, annual review of job classifications, evaluation of incentive plans
and careful budgeting of pay increases.
Wage components
There are five wage components: basic wage, dearness allowance, overtime, bonus and
fringe benefits.
Basic Wage It is stable wage paid over a period of time-monthly, weekly or daily. It can
also be considered as the normal rate for a specified level of output. Thus for a particular
job involving its varied requirement such as skills and training, it commands a price to
get it done. It does not fluctuate.
Dearness allowance (DA):- The system of DA payment was used for the first time after
World War I to enable the workers to meet the steep rise in prices of essential
commodities such as food-stuffs. Although called by various names, the special
allowance thus paid aimed at neutralizing the high cost of living and protect the real
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wages of the wage earners. In other words, the major purpose of DA payment was to
provide relief to the workers confronted with inflationary conditions by attempting to
offset the cost of living with additional allowance.
Incentives:-Incentives refer to variable rewards granted to the individuals in terms of
changes in specific results in organizational settings. They are devised to play a causal
role in conjunction with rewarding the effect.
Fringe Benefits:- These refers to benefits such as payment for vacations, holidays, sick
leaves, work clothes, eating time, transportation, insurance protection, pension programs
and allied issues. In the past these things did not form an important component of the
employee‟s income and were designated as „fringe benefits‟. However at present these
payments are a significant part of the employee‟s compensation system.
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CHAPTER-4
A WORD ABOUT THE HR PRACTICES AT AIRTEL
Early this year, premier cellular service provider Bharti Cellular, operating under the
brand-name of Airtel, was adjudged the `Company with the Most Innovative HR
Practices in the Asia Pacific Region' at the Asia Pacific HRD conclave held in Mumbai.
Anil Nayar, executive director of the firm, says the award is the culmination of
concentrated efforts in HRD, which Airtel initiated in 1996.
“We did the job quietly. And at every moment of truth, we checked if our team had the
right attitude to realise the vision statement of the company,” says Nayar.
During the learning phase, the most important part Airtel general manager(HR) Arun
Kumar Padhi had to play was to actually check if “people enjoyed their roles”. “We
didn't want anyone to treat his position as a mere job. Now when we look back, it
emerges that we had undertaken strong team- building activities,” says Padhi.
Airtel decided to go in for a very young team. The average age is just 26years. Nayyar
believes this has helped the HR department to mould the young entrants to the company.
``But having decided to take in relatively less experienced professionals, we did not want
to curb their creativity or interaction,'' says he.
The senior management was advised to walk the talk and ``invite criticism from the
employees''. ``Initially, the younger professionals were circumspect about airing their
views. But with better interaction with the senior managers, they began to play a more
pro-active role in team-building efforts,'' he says.
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Airtel's HR success was powered by a well defined rewards and recognition system. This
was backed by a strong training programme. ``Unlike most other organisations, we let
our employees decide their training needs. And if the individual does not know what his
training needs are, then we don't need him,'' says Nayar.
To encourage learning within the organisation, the company has set up a state-of-the-art
learning centre. Here, employees can get logged on to customised training programmes
developed by British Telecom (BT). Though the material is transmitted through the
Internet, Padhi says that they are not accessible to anybody outside the organisation as the
access is protected. Airtel also seeks to certify every employee on quality and IT. ``To be
ahead in the business, we need to train, develop and re-certify our employees on a
continuous basis,'' he says.
Over the years, it is the HR steering committee (HRSC) of the company that has acted as
the fulcrum of the HRD efforts in the organisation. HRSC consists of the CEO, the COO
and all other functional heads. The committee meets once a week to discuss various
initiatives and the plan of action on the same.
To carry forward these plans, the entire organisation is measured on five performance
parameters: profitability, market share, brand saliency, customer satisfaction, and
employee satisfaction. Further, each employee is given individual targets that are linked
to these five parameters.
Eventually, there are the performance-related bonuses that set the tone for these activities.
Padhi informs us that 60 per cent of the employees are on a variable pay structure, and
that explains the success Airtel has had in business and HRD.
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Padhi's team also conducts an internal employee satisfaction survey called PACE
(Progressive Assessment of Culture and Environment), the inputs of which go into the
company's annual strategy.
“Measurement is indeed a key driver of business within Airtel. A philosophy of constant
monitoring has been established. `Measurement Boards' for every department are
prominently displayed where the performance indicators of the same are displayed
graphically,'' says Padhi.
“We believe that an individual can be effective if he knows what is expected of him.
Formal job description documents have been issued to all our employees that clearly
mention the `key result areas'. This goal setting has helped us in communicating to each
of our employees about our experiences from them, and established role clarity,'' he adds.
The HR department also sets up cross-functional teams in times of product or service
launches. ``Such teams typically constitute high performers from each department, who
collectively make it happen,'' says Padhi.
Some of the other key HR initiatives include the managers' communication forum, open
house, family group meetings, HR interface and HR intranet. To explain them, the
managers' communication forum, undertaken once a quarter, facilitates direct interaction
of the employees with the top management.``They get to discuss issues relating to the
performance of the previousquarter, directions for the next quarter, an update on the
regulatory environment and the key initiatives for the period,'' says Nayar.
The `open house' conducted between the departments and HR takes up individual
grievances. In the case of family group meetings, each HOD conducts meetings with his
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direct reportees once a month, wherein issues other than those related to work are
discussed.
To further HR interface, every member of the HR department has been assigned two
departments each to discuss and sort out all HR, personnel and administration issues.
``The idea is to provide employees with a single window to the department,'' Padhi
explains.
The HR Intranet provides information on HR policies, organizational structure, training
calender and the house journal.
With these initiatives, Nayar says, ``Airtel has won a special place in the Bharti group.
The quality of service and customer care is a reflection of the quality of people and our
belief in constant improvement and upgradation.''
On the business side, Airtel has won the Techies award for three consecutive years in
1997, 1998 and 1999. The HR award will galvanise the company to touch even greater
heights.
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HR PRACTICES AT AIRTEL
HUMAN RESOURCE DEPARTMENT at Airtel
The Human Resources in Airtel are in fact are not resources – but an “Asset”. They
call them “Human Capital”. At Airtel , they believe in valuing people and realizing
the value of people.
In Airtel the HR department is considered have the responsibility of job analysis to be
carried out for each job in the structure, on the basis of this analysis, the best candidate
fitting a job is selected. Sometimes if the necessity is felt for the need of another post in
the existing structure in the departments as well as within the factory also then the HR
dept plays a pivotal role in defining the necessity for such a post as well as the final
creation of the post.
Moreover they also take care of the reverse process whereby any post that may be felt
was unnecessary may be completely dropped in consultation with the top management.
Sometimes they also may turn the centralized work pattern followed in any particular
dept into decentralized work structure.
Airtel has a culture of employee involvement and participative management. This leads
to enhancement of motivation. Employees of Airtel also bring to the forefront their
hidden talents and creative nature. This inculcates a feeling of belongingness and
ownership of the business. Therefore many HR innovative based practices which have
become a way of life at Airtel. Some of the practices have become very powerful and
many industries as well as business schools keenly request Airtel to share with them.
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Airtel has received lot of recognition and awards from various professional bodies under
these HR practices.
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THE DNA OF AIRTEL
At the CEO Conclage in Macau, in October, they deliberated upon the key elements that
clearly distinguish the essence Airtel. As a result of this deliberation they recognized that
the following four attributes that they have so far associated with their brand are as much
the driving force for all in the organization. In fact, these are what they call their DNA.
To bring this “Airtel DNA” to life, they have defined what these mean from „people
perspective”:
FRESH - Seek Opportunities and Solutions by being Innovative and Enterprising
IN TOUCH - Stay Connected by being Aware and Sensitive
ON MY SIDE - Build Relationships with Empathy and Understanding
CAN DO - Strive for success with Passion and Accountability
To ensure that this DNA is a part of their everyday behavior, their leadership
competencies are now aligned and have a clear established linkage with it. Further, given
their stupendous growth, they also revisited the critical behaviors that will accelerate their
journey towards achieving the 2010 vision of being the most admired brand in India.
Critical to their individual and collective success are 5 competencies defined across the 3
spheres of Customer, People and Business:
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1.Displaying Entrepreneurial Spirit- Has a passion to win! Seizes business
opportunities and converts them into valuable results. Has an innovative and fresh
outlook, and thrives on continuous change. Dreams BIG!
2. Achieving Business Success - Contributes towards building a dynamic and sustainable
business, based upon a sound understanding of business and financial realities. Commits
to working towards the long term goals. Adheres to company strategies and policies, and
encourages others to do so.
3. Empowering & Developing- Maintains a continuous focus on development of self
and others. Nurtures and cultivates diverse talent in the business. Aligns performance to
organizational goals
4. Building Collaborative Relationships- Proactively develops internal and external
relationships and strives for a 'win-win' solution. Collaborates, willingly shares
information and manages conflict. Demonstrates sensitivity and respect when dealing
with others.
5. Delighting the Customer- Enthusiastically adheres to a customer first culture and
seeks to deliver customer service excellence. Engages with customers and seeks to make
their life easy. Ensures promise made is promise kept- with integrity.
These leadership competencies will guide their actions and behaviors and become the
foundation of their people processes and systems.
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Employment or Personnel planning
At Airtel planning is done at a constant level as they do not have any fixed cycle for
planning. Some times its done in accordance with the business strategies of the firm for
that year. The planning process is greatly influenced by various factors such as:-
1. Projected turnover( as a result of terminations or resignations)
2. Strength, quality and skills of the present employees
3. Current business
4. Target business
5. Strategic decisions to improve or upgrade the quality of the service
6. Technological and other changes in the business environment
7. Financial resources available to each department.
These factors influence the decisions regarding the personnel planning. Once these
factors are analyzed, the requirement, if any, of new employees are stated. Decisions
relating to:
a) How many new employees are required to meet the business demands?
b) At what levels recruitment should be done?
c) What would be the Payroll cost – current vis-a-vis budgeted?
d) Where to get people from?
e) How to reach potential candidates?.....e.t.c. are addressed.
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RIGHT-SIZING IN AIRTEL
Reorganising a company‟s employees in order to improve their efficiency is called
Right-sizing. Reason may vary from changes in product demand/technology to raising
per person productivity to competition. Some of the methods followed are:
Senior management offered handsome severance pay.
Freezing of vacancies (hiring freeze)
Enlarge jobs
Agreement with trade unions to reduce working hours and wages, if required for a
short time.
Encouraging employees to take long leave, earned or half pay.
Airtel is currently in this mode. Their strategy involves centralizing every process to
Gurgaon and is planning to go into factory mode or the call centre setup. A new software
is being introduced for this and is expected to be in place by April 2007. One of their
action plan includes keeping only connections process in circle. Eg. The FOS going in for
an activization call only will be registered and attending to the call from start to end.
Secondly, in next one month the on rolls manpower is expected to be reduced. They are
conducting continuous audit and surveys to take preferences from employees in terms of
their preferences for department and location. Then they shall determine who would be
shifted to which profile depending majorly on competencies.
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RECRUITMENT AND SELECTION
This is a very important task for the organization as it has to invest a large amount in
improving the skills set of a future employee . Hence the process is very rigorous and
through. Once the requirements from various departments has come to HR, then the
process of recruitment starts. Airtel use both internal and external sources for recruitment.
Depending upon the job profile it would go for the process. Say they need to recruit
agents for sales, then they would go for external sources but if they want Sr. Managers
they would prefer an internal source who could give a recommendation.
Internal Sources:
i. Own Databases
ii. Job posting in Newspapers
iii. Employee referrals
iv. Temporary work pools
Airtel is inclined to Referral system as the referor can be held directly responsible as
well as they have a well designed payout structure to promote employee references.
External sources:
i. Consultants
ii. Jobsites – Monster.com, Naukri.com etc.
iii. Own website- www.airtel.com
iv. Campus – B Schools ( For Lower Level mgmt)
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The recruitment process varies with the kind of job profile. Say if they are recruiting
telesales executive, then the parameters they would be judging them on would be their
communication skills and soft skills. If a technical graduate is to be considered then they
would conduct a written test also to check his proficiency for that profile.
Airtel recruits employees at various level starting from:-
Telesales Executive
Graduate Enggs
Management Trainees
Team Leaders
Sr Executives
Managers with work Ex.
The applications are invited through different media which includes:
Job posting or internal notices,
Trade journals (for technical jobs)
Business papers and magazines (Business Today )
MBA websites (for mgmt. trainees at junior level)
Newspaper advertisement(-do-)
An important policy is regarding middle level executives upwards where in they only
recruit through referrals.
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After they have identified the pool of candidates, they conduct a written test to ascertain
their knowledge about the language. Then they segregate the suitable candidates and
conduct a group discussion.
After which an interview is conducted. And finally the short listed candidates have an
interview with HR. The process is generally the same but sometime slight modifications
are done according to the job profile.
Training and Development
Training refers to the methods used to give new or present employees the skills they need
to perform their jobs. For the new employees the training period starts with the
Orientation and Induction programme.
At Airtel, there is a mid term assessment for training needs and an annual assessment.
Each employee is asked to identify 2 strengths out of the competencies and one
opportunity. There are identification levels as follows
First level Identification: Superior tells where is the training need.
Second level Identification: Employee states individual training needs.
This is sent to HR and HR then plans how to design the career progression path. There
could be training needs such as leadership, team building (if weak team member),
customer care, or mentorship. Workshops are then conducted. This exercise is followed
for each employee. The reporting manager maintains a booklet called “red book” and
notes instances, positive and negative in terms how s/he has performed against
parameters as COC (code of conduct), competency etc. these are then discussed during
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monthly reviews and opportunity is given to bring to light issues pertaining to boss
inpresence of his superior inturn.
Orientation Programme: This is a one day programme for all the new incumbents of
the organization. This is the first day at the organization. After a brief introduction about
the company by a senior official each new recruit is being given a „Joiners Kit‟. This
carries various information like policy statements relating to working hours, leave, gift
policies, dress codes, compensation policy, mobile policy, provident fund policies, time
expense statement reports etc.
Induction programme:This marks the beginning of the formal training schedule. This is
a 3 days programme wherein all the new incumbents are taken to a five star hotel during
the three day period. There they meet with the top management of the organizationwhich
then delivers the welcome address to the new employees and informs them about the
vision and mission of the organization. This programme also helps in developing good
camaraderie among the employees.
Following the induction programme, the employees undergo technical and soft skill
training. This is common for both the new and the present employees whose skills are to
be developed. The soft skill training is for approximately 1 week.
Technical training: this includes job related, functional training. It is also known as on-
the-job training. It is imparted by the senior officials of each department to their juniors.
It is done on regular basis.
For a telesales agent that would mean getting rained on the process of taking calls and the
process of making records in the tools that they might be using to record their calls . The
various products that are being offered.
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Soft Skill training: this is done mostly by experts from outside the organization.
Emphasis is led on developing soft skills of employees like team playing ability,
behavioral and managerial training etc. This training is imparted through various OD
programmes and also through MDPs which are executed at two levels- the individual and
group.
This would include various voice and accent classes to decrease MTI, and dealing with
various situation regarding different types of customers etc.
The training and development programme results in the socialization of the employees
among themselves and also alignment with the organizational culture and objectives.
For old employees the T & D helps in improving the working skill and efficiency.
Apart from these, occasional lectures by industry experts and senior officials are also held
from time to time to appraise the employees about the recent developments in the
business.
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PERFORMANCE APPRAISAL
For any quality conscious company performance appraisal is an important and effective
tool to know how its most important resource that is people is performing and Airtel is no
different here also performance appraisal is given a lot of importance to not only improve
the performance of the employees but also to make sure that the effective employees are
adequately rewarded so that they remain motivated to perform in the organization
For convenience we only discussed the appraisal methodology of an executive on the
floor.
The main Appraisal come from the Team Leader whose ahs actually observed the
employee close hand. Also there is continuous feedback from the quality deptt
which continuously does the monitoring.
Also the feedback that comes form the customers is also taken in to account while
evaluating the employee.
And before this the employee is given a form to do his self appraisal.
And beyond this there is a continuous method of appraising the employees about there
daily performance in terms of reports that are generated in mis which are shown to each
person so that he can evaluate his performance. At the end of the month the ratings are
added and a combine score is achieved according to which the various employees are put
into different buckets (like green for best, blue mediocre etc).
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Compensation at Airtel
Compensation is one of the critical part of Airtel policies so they did not disclose that.
Though, we could collect a rough estimate of the salary structure from the pay slips of
customer care officers working at Airtel. There are several salary structures depending on
the designation for which the employee works. For example, in Airtel telesales you have
an executive. A mentor, a team leader, a manager. So it became difficult to get the
compensation details.
Despite these facts, we did observe a certain pattern followed in all the pay slips. The
salary structure understood by us was of the format:
1. Basic salary
2. House Rent allowance
3. Dearness Allowance
4. Transport Allowance
5. Food Allowance
6. Incentive
7. Provident Fund
- Employee‟s share
- Company‟s share
8. Net salary
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Airtel is the leading company in the telecom sector which is growing at such a rapid
pace thus is throwing up jobs in thousands hence there are a large number of
employees who want to join Airtel and make a carreer.
The salary structure of a customer care executive is as follows:
1. Basic salary…………………………………...Rs.4000
2. House Rent allowance……………………....Rs.3500
3. Dearness Allowance…………………………Rs.1000
4. Transport Allowance…………………………Rs.1200
5. Food Allowance………………………………Rs.900
6. Incentive(variable)...………………………….Rs.1500
Rs.12100
7. Provident Fund
- Employee‟s share………………………….Rs.375
- Company‟s share…………………………..Rs.375
8. Net salary……………………………………...Rs.11350
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Chapter-5
Objective
To assess and analyse the impact of the strategic HR practices on organisational
performances with special reference to the practices in the Airtel.
To understand and identify the core HR practices prevailed in the industry.
To understand how the integration of strategic HR practices with organizational goals
is successful in motivating the employees and generating better performance.
The main objective of the selection is to hire people having competence and
commitment. These barriers are perception, fairness, validity, reliability and pressure.
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CHAPTER-6
RESEARCH METHODOLOGY
The ongoing section will discuss the research methodology adopted to arrive at and
achieve the stated objectives of the research. HR practices on organisational
performances with special reference to the practices in the Airtel, the study followed the
below mentioned research approach.
PRIMARY DATA COLLECTION:
For primary data collection the case study method will be used which has used a semi-
structured interview schedule for better probing of the facts. They were open-ended and
were supplemented with appropriate probing questions to gain further insights into the
issues. The interviews were conducted with the managers.
SECONDARY DATA COLLECTION:
The study has adopted document based data search using the secondary data. Both the
document based data and multi source secondary data were used substantially.
The important data sources were Text Books, journals from various databases,
Companies Annual reports, and related websites were also used.
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Chapter-7
ANALYSIS
Q1. Integration of HRM with corporate strategy?
Responses No. of responses
Agree 14
Moderately Agree 4
Neutral 2
Integration of HRM with
corporate strategy
70%
20%
10%
Agree
Moderatelyagree
neutral
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Most of the Managers agreed that HRM is an integral of their main business strategy. The
business understands the importance of human capital. The success of business is highly
dependant on the success of the human performance and HR policies and practices deals
with human issues related to selecting and motivating the employees to work successfully
towards the organizational Goal. The success of any business strategy is largely
dependant on the conducive HR polices.
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Q2. The Integration of HR Strategies with organizational Goals?
Responses No. of responses
Yes 20
No 0
Existence of Integration
100%
Yes
All the Managers stated that there is obvious integration of HR strategies with
organisational goal. In fact the integration takes place at the functional and structural
level. The integration is visualized through the strategic implementation of the core HR
practice.
HR practices like, Training and development, performance appraisal and Recruitment and
selection are very often moulded according to the goal of the organisation.
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Q3. Core HR strategies important for integration
Strategic HR practices importance No. of responses
Training and Development 12
Performance Appraisal 8
Around 75 percent of the Managers believed that Training and development followed by
a conducive performance appraisal system are the most important H.R practices that
validate the true integration. They graded the importance of the training to be 60 % and
performance appraisal system to be 40 %. Through continuous training programme the
corporate develops orientation amongst the employees to work together toward the
attainment of the greater organizational goal. Performance appraisal system up grades the
employees capabilities and ultimately motivates them to perform according to the goal
expectations.
Core HR practices
60%
40% Taining and
development
performance
appraisal
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Successful integrations generate better performance, which can be evidenced by the
continuous better performances of MUL, Honda SIEL, and Hero Honda. All the
managers believed that it is the integration that keeps the employees motivated and
results in the increase in the per capita productivity, which finally generates better
organizational performance.
Q4. Do you have formal appraisal system in your organization?
Pie-chart shows that all respondent have agreed to one point and that is organization do
have a formal appraisal system.
100%
0%
Yes
No
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Q5. How Frequently You Go For Training?
Learning at Bharti is a continuous process and they learn at each and every stage. The
education and training team continuously strive to make its colleague learn as frequent as
possible. So that they are always prepared for any situation to face the competitive world.
Proper training of employee is held as per the need and requirement of the employee
related to the work he is assigned. So that he can do his best. But still if we see people
frequently go for training.
6
9
4
5
6 6
0
1
2
3
4
5
6
7
8
9
10
Frequently Non-frequently
Monthly Quarterly Half yearly Annually
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Q6. Any Feedback Taken?
Yes feedback is taken from the trainee after the training is over. In terms like whether
they liked the training, which they had undergone, was that sufficient enough to make
them handy and competitive to go with. If not then what can be done which make it easy
and handy to understand. If they are looking for any kind of further training keeping in
mind any consecutive training related to previous undergone and if any new conceptual
training emerged as on.
0
2
4
6
810
12
14
16
18
YES NO
17
3
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Q7. Kind Of Training?
Training small word covering wide connotation, is the way you groom some one in
different environment and ways available as per the capacity as well as availability. On
the complexities of it training is imparted to individual. At Airtel employees have been
undergone in almost all the above category but most of them feel it should be held off the
job so that they can concentrate approximately in what ever they are taught, where as
they feel that some training like 6 sigma, 5s, Kaizan should be help on the job for its
effectiveness.
15
9
11
3
14
0
2
4
6
8
10
12
14
16
In-house Outhouse Online Offline All above
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Q8. Need Identification?
As already discussed in brief in report as to how it should be done so root of problem can
be traced out and accordingly it can be treated well for the best output. There are so many
ways to identify the cause of the problem. Over here we discussed 3 main causes where
by few find that 3 of them are very much in use in industry. That is employee himself,
performance appraisal, and superior assessment. Here we can see that the best to know
about you is he. He can be monitored by the team head too who sees him working
regularly and if found then can recommend him to undergo training.
38%
39%
23%
Superior assessment Employee himself Appraisal
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Q9. The Integration of HR Strategies With organizational Goals?
All the Manager stated that there is obvious integration of HR strategies with
organisational goal. In fact the integration takes place at the functional and structural
level. The integration is visualized through the strategic implementation of the core HR
practice.
HR practices like, Training and development, performance appraisal and Recruitment and
selection are very often moulded according to the goal of the organisation.
Existance of Integration
100%
1
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Chapter-8
CONCLUSION
The study of the Human Resource activities at Airtel brings out the importance of HR as
a discipline for any organization big or small. Airtel today is one of the most respected
companies in the world and much of the credit for this goes to the management‟s ability
to manage its human resources. An organization is by the people, of the people and for
the people. As such it is very essential for any organization to realize the importance of
its human capital which is rare, valuable and immutable. It defines the competitive
advantage of the organization. As was rightly said by a visionary corporate leader that
“…..take away my organization but leave my men, and I will build a similar organization
within no time..”. Today organizations are putting a lot of their effort to develop their
human capital.
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Chapter-9
LIMITATIONS
1. The time of doing the project , as well as the no. of appointments with the company
were limited to study the HR activities in detail .
2. The information provided by the HR Manager was limited regarding certain issues ,
like : compensation etc.
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BIBLIOGRAPHY
Mamoria,C.B and Gankar,S.V (2002) “Human Resource Management” Published
by Himalaya Publishing House.
Virmani, B.R. And Seth Premila (1985) “Evaluating Management Training and
Development” Published By Vision Book Pvt Ltd
Human Resource Management- a perspective Harward Business Review 2000
Economic Times, Business World
www.indiainfoline.com
www.bharti.com
www.airtelworld.com
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QUESTIONNAIRE
Q1. Integration of HRM with corporate strategy?
Agree Moderately Agree
Neutral
Q2. The Integration of HR Strategies with organizational Goals?
Yes No
Q3. Core HR strategies important for integration
Training and Development Performance Appraisal
Q4. Do you have formal appraisal system in your organization?
Yes No
Q5. How Frequently You Go For Training?
Frequently Non-frequently
Monthly Quarterly
Half yearly Annually
Frequently
Q6. Any Feedback Taken?
Yes No
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Q7. Kind Of Training?
In house Outhouse
Online Offline
All above
Q8. Need Identification?
Superior assessment Employee himself
Appraisal
Q9. The Integration of HR Strategies With organizational Goals?
Existence of integration