EXECUTIVE SUMMARY The project titled HR planning and Recruitment is undertaken in DHL. DHL Express is a division of the German logistics company Deutsche Post DHL providing international express mail services. Deutsche Post is the world's largest logistics company operating around the world.[2] DHL is a world market leader in sea and air mail. Originally founded in 1969 to deliver documents between San Francisco and Honolulu, the company expanded its service throughout the world by the late 1970s. The company was primarily interested in offshore and inter-continental deliveries, but the success of FedEx prompted their own intra-U.S. expansion starting in 1983. DHL aggressively expanded to countries that could not be served by any other delivery service, including the Soviet Union, Eastern Bloc, Iraq, Iran, China, Vietnam and North Korea. In 1998, Deutsche Post began to acquire shares in DHL. It finally reached majority ownership in 2001, and completed the purchase in 2002. Deutsche Post then effectively absorbed DHL into its Express division, while expanding the use of the DHL brand to other Deutsche Post divisions, business units and subsidiaries. Today, DHL Express shares its well-known DHL brand with other Deutsche Post business units, such as DHL Global Forwarding and DHL Supply Chain. The DHL Express Service has ceased domestic operations in the United States of America, as of February 2009.
OBJECTIVES
To study the HR Planning and Recruitment procedure followed in DHL Express.
To study various sources of recruitment followed in DHL Express.
To study what is the process of Recruitment and HR Planning that should be followed.
To search or headhunt people whose skill fits into the company‟s values.
CHAPTER - 1 INTRODUCTION Human resource is a basic need of any work to be done. According to ARTHUR LEWIS : “ There are great differences in development between countries which seem to have roughly equal resources, so it is necessary to enquire into the differences in human behavior. “ The scope of Human Resource Management is very vast. It is connected with all major activities in the working life of a worker. HRM is connected with every other department as human resources are the requirement of all departments in the organization. Human Resource Management involves a large number of functions or activities. This number varies according to the size and needs of the organization. The activities or functions of HRM affect the organization internally. However the external environment affects HRM functions. The major functions of Human Resource Management are :
Human resource planning
Recruitment
Organizational and job design
Staffing
Training and development
Performance appraisal
Compensation and reward
Maintaing effective employer-employee relationship
Health and safety management
Motivation and communication
Indusrial relation
HR PLANNING : The process that links the human resource needs of an organization to its strategic plan to ensure that staffing is sufficient, qualified, and competent enough to achieve the organization's objectives. HR planning is becoming a vital organizational element for maintaining a competitive advantage and reducing employee turnover Human resources planning is a process where Scott Anderson identifies current and future human resources needs for an organisation to achieve it goals. Human resources planning should serve as a link between human resources management and the overall strategic plan of an organization. Ageing working populations in most western countries and growing demands for qualified workers in developing economies have underscored the importance of effective Human Resources Planning. As defined by Bulla and Scott Anderson , Human Resource Planning is „the process for ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements‟. Reilly defined workforce planning as: „A process in which an organization attempts to estimate the demand for labour and evaluate the size, nature and sources of supply which will be required to meet the demand.‟ Human Resource Planning includes creating an employer brand, retention strategy, absence management strategy, flexibility strategy, talent management strategy, recruitment and selection strategy.
Importance of HR Planning :
1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. 2. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Setting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. 3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes , i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. 4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations. 5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. Higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and it's related activities (Performance appraisal, training and development, remuneration)
Need of HR Planning : Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner: 1. Shortages and surpluses can be identified so that quick action can be taken wherever required. 2. All the recruitment and selection programmes are based on manpower planning. 3. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. 4. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents. 5. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. 6. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.
RECRUITMENT The acquisition of human resource for the organization takes place through the process of recruitment. After the human resource needs of the organization are identified through human resource planning, the next step is that recruitment. One of the most difficult tasks of the human resource manager is that of recruiting the right kind of people for the organization. Recruitment is the first step towards procuring qualified manpower for the organization. The process of acquiring human resources begins with recruitment, continues with selection and ceases with placement. Decenzo and Robbins describes recruitment as “ the process of discovering potential candidates for actual or anticipated organizational vacancies.” It is a linking activity aimed bringing together those with jobs to fill and those seeking jobs. According to Edwin Flippo ,” recruitment is the process of searching for the prospective employees and stimulating and encouraging them to apply for jobs in an organization.”
SOURCES OF RECRUITMENT The various sources of recruitment may be broadly claasified into two broad categories :
Internal sources
External sources
Internal sources of recruitment The internal sources of recruitment focus on finding qualified applicants within the organization. The organization itself is the best source of applicant for positions above the entry level. External sources of recruitment Organizations turn to external sources of recruitment when the internal sources fall short. New organization rely largely on external sources to meet their recruitment needs. However even well established organizations turn to external sources when candidates with the desired skills, knowledge and qualification are not available in the organization.
CHAPTER - 2 Company Profile DHL Express is a division of Deutsche Post providing international express mail services. Originally founded in 1969 to deliver documents between San Francisco and Honolulu, the company expanded its service throughout the world by the late 1970s. The company was primarily interested in offshore and inter-continental deliveries, but the success of FedEx prompted their own inter-US expansion starting in 1983. DHL aggressively expanded to countries that could not be served by any other delivery service, including the Eastern Bloc, Vietnam and the People's Republic of China. FedEx Corporation, was known as FDX Corporation, is a global logistics, e-commerce and supply chain service providers, based in the United States with headquarters in Memphis, Tennessee. Originally founded in 1971, the company‟s independent network of subsidiaries include FedEx Express (business courier services), FedEx Ground (business packaging and ground delivery services), FedEx Custom Critical (operating high-speed transport delivery services), FedEx Global (operating integrated logistics, technology and transportation services) and Viking Freight (the American West small transport companies). Over the years DHL and FedEx have been on cut throat competition regionally with market share, but both being a service based company they have concentrated a lot on their internal factors i.e. Human resource management strategies in order to gain competitive advantage.
CHAPTER - 3 HR Planning And Recruitment In DHL Express In many countries throughout the world, demographic changes have become an important factor in our personnel planning. In Europe, the aging workforce is the main demographic challenge for HR managers. In the highly populated emerging economies of Asia or South America, on the other hand, the challenge is to promote the development of young talents by way of education and training. Targeted HR marketing and efficient recruitment around the world are of great strategic importance to our future. Strategic workforce management allows us to manage age-related and capacity risks, address additional training needs, identify transfer opportunities, and effectively implement long-term succession planning. Following the successful completion of three pilot projects in Germany and Mexico, the methodology will now be transferred to additional countries and divisions. Age structure of our workforce in Germany as at 31 Dec. 2012 Men
Women
Up to 20
2,519
1,229
21 to 30
12,189
6,342
31 to 40
15,067
12,727
41 to 50
33,036
33,624
51 to 60
25,941
25,667
2,375
1,543
43.8
45.5
61+ Average age
More training opportunities within the Group The range of traineeships we offer is as diverse as the Group itself. Secondary school graduates in Germany can choose from over 20 different vocational training and study opportunities,
depending on their level of education and individual interests. We also offer young people attractive career training opportunities outside Germany. When hiring interns, we comply with the quality standards established by the "Fair Company" initiative. This includes appropriate compensation, a focus on full-time jobs rather than internships, and avoiding vague promises of future employment. In 2012, Deutsche Post DHL employed approximately 4,900 trainees and students worldwide. In Germany alone, 2,106 young people began a vocational training program or an integrated degree program (Duale Hochschule) within the Group. We offered nearly 80 % of our trainees continued employment and, with that, a valuable career opportunity.
Second chance for young people still seeking vocational training positions In 2012, our "Perspektive Gelb" job entrance program provided approximately 450 internship positions in the MAIL division to young people who had not yet been accepted into a vocational training program. These internships last at least six months. They are designed to prepare participants for the formal Courier, Express and Postal Services Specialist vocational training program. So far, Deutsche Post has offered vocational training positions to 75 % of these interns.
Scholarship program for employee children Our "upstairs" program provides scholarships to the children of Deutsche Post DHL employees in several regions throughout the world. As a general rule, the program supports scholarship holders over a period of three years. Participants receive an individualized scholarship package including school/university tuition fees, mentoring support and internship opportunities. Additional support includes further training, such as language or IT courses. In 2012, the program was successfully implemented in 87 countries and today provides support to approximately 600 children.
CHAPTER - 4 EXPRESS Division World market leader for international express services EXPRESS in figures
Countries and territories: 220
Main global hubs: 3
Servicepoints: 36,750
Vehicles: approx. 31,500
Customers: approx. 2.6 million
In the EXPRESS division, we transport urgent documents and goods reliably and on time from door to door. Our network spans more than 220 countries and territories, in which some 100,000 employees provide services for more than 2.6 million customers. As a global network operator that applies standardised processes, we are well aware that the quality of our services and the satisfaction of our customers are crucial in determining our success. That is why we are constantly optimising our service to keep our customer commitments and respond specifically to customers' wishes. It is not by accident that DHL is the world market leader in international express services. Portfolio of time-definite products simplified and strengthened International time-definite courier and express shipments are our core business. Our main product, Time Definite, offers delivery as fast as possible. Our premium Time Definite product with guaranteed pre-12 delivery and money-back guarantee was substantially expanded in 75 destination countries, creating more than a million additional postcode combinations where our customers benefit from our improved range of services. Our portfolio is complemented by special industry-specific services such as Collect and Return and Medical Express. Customers in high-tech industries in particular use Collect and Return, in
which critical goods in need of repair are collected from the end user, taken in for repair and then returned to the user. DHL has also increased activities for customers in the Life Sciences & Healthcare sector. In the year under review, we began offering various types of thermal packaging for temperaturecontrolled, chilled and frozen contents. These types of packaging are easy to order from our regional supply centres. In addition, we have extended our network. For example, the number of our Service Points increased to the current 36,750, 1,000 were added in emerging markets and in Africa alone. At these Service Points, customers paying directly can purchase our Express Easy product even if they do not have a customer account. This simple product with its transparent price and weight categories and recyclable packaging is gaining steadily in popularity. To allow us to concentrate on our core business of international time-critical shipments, we are offering our Economy Select product in the Day Definite area in fewer markets than before.
CHAPTER - 5 HRM strategies of DHL Express Since both of the companies are service based, and has been operating on logistics for quite a lot of years, evidently they have a lot of similarities in the way they manage their human resources.
Performance & Motivational TrainingDHL took a broad initiative to develop its talent by introducing learning establishments namely DHL Asia Pacific Learning Centre and the DHL Logistics Management University. Furthermore, DHL has also launched its Deputy Country Manager Programme in 2008 in Singapore. The programme, which commenced in January 2006, aimed to create a talent pool who will be groomed to become senior executives capable of assuming country manager and other senior management positions in Asia Pacific. The Deputy Country Manager programme assigns a talent to work in another Asian Pacific country under the guidance of the local country manager. Each programme is designed based on a particular talent‟s needs in specific skills and competencies. Assigning the deputy country manager with a key task, they will be developed in areas such as operations, human resources, corporate social responsibility and finance. FedEx Training is considered as the most important events at FedEx, in order for the company to meet their goal of 100% customer satisfactory. It has a promotion from within policy. It undertakes as well as arranges extensive training for all of the employees as well as the managers that covers the quality management, leadership concepts as well as the philosophy of the company (Ahmed & Ullah 2006). Furthermore by maintaining a solid employee retention scheme the company had been able to maintain and retain their employees, and improves their
skills, by making sure that every employee is receiving proper training in terms of job performance skills (Denton 1992).
Some of the additional strategies followed by DHL Express are: 360 Degree Online Feedback ProgramWhen DHL became a part of the Deutsche Post, a program called 360 Online Degree Feedback frameworks was adopted to integrate its diversity of operations and regions. The program was designed to achieve three aims:
Performance management
Talent Review
Senior Leadership development Program
The program was an online one whereby its managers across the globe could participate in all the three areas mentioned above. “The online nature of the system would provide a streamlined structure that could be applied cost-effectively throughout the new organization‟s massive network.” (DHL 360 Online - Developing a Global Solution for Leadership Development: DHL Identify need for Online Solution with Global Reach. 2005). All multi-national companies with global divisions such as Freight Forwarding face similar challenges and have to adapt and learn to be able to stay competent. For a manager in a division like DHL Global Forwarding, the 360 Degree Feedback Program which is an example of participatory management style was useful in understanding the needs, aspirations and views of its many employees across the globe.
Health management and occupational safetyDHL puts a lot of priority on the health and safety of their employees and the fact that they are committed to retaining them and developing their performance. As one of the world‟s largest
service companies, it is a commercial necessity to invest in the health of their employees. They are therefore not limiting themselves to just reducing time loss through injury and illness, but are also promoting sustainable health and accident prevention.
Career DevelopmentTheir International Business Leadership Program gives top executives from across the Group the opportunity to systematically build up strong cross-divisional networks, become familiar with business strategies and advance their management skills. More than 100 executives took part in the program in 2009. Since 2006, they have given selected executives the opportunity to develop their skills by taking part in an Executive Master‟s of Business Administration program in leading business schools around the world. Students are enrolled part-time and specialize in general management, logistics or finance.
Workforce DiversityTheir employees are a reflection of the society they live in. They come from a broad range of ethnic and social backgrounds, and represent different age groups, world views and life plans. Together, they provide services to a customer base which is just as diverse. In an effort to ensure the highest degree of productivity, creativity and efficiency possible, they are committed to managing diversity professionally and to creating a working environment that is free from discrimination. Diversity management is therefore an integral part of their employment policy and firmly rooted in their Code of Conduct as well as in their corporate culture. In May 2009, the DHL Supply Chain division launched the Diversity & Respect initiative throughout Europe. It is dedicated to getting young people from different countries, especially women, interested in a career in their industry. DHL Express Europe has also committed itself to increasing the diversity of its workforce. The division conducted a survey to identify priorities in diversity management. In the summer of 2009, DHL Express Europe launched the Women in Leadership initiative to support talented female employees.
Additional Strategies followed by DHL are: Leadership Evaluation & Awareness Process (LEAP) – DHL believed in promoting people from within for higher management cadres. The SFA program helped management take decisions regarding promotions, though its utility was confined to evaluating the performance of the managerial cadre employees only. DHL also provided opportunities to employees from the non-managerial cadres to move up to the managerial level. In order to encourage non-managerial cadre employees to move to the managerial level within the organization, DHL devised a unique program known as 'Leadership Evaluation and Awareness Process' (LEAP).
Employee RetentionThe retention of talents is also one of the most important strategies of the company. It has a turnover rate of 1%, having to show that they have the most effective way of keeping their employees. The main reason behind the said success is that the company is offering high career opportunities, the result of the policy that employees are being promoted from within. Because of the said policy, the company had been able to recognize the efforts of its people through awards, open communications as well as other incentives.
Strategies Of DHL Express In Relation To The HR TheoriesOver the years it has been evident that Human Resource Management has been advantageous to an organizational performance in more than one way, it has improved employee commitment, improved skills and productivity, lower levels of absenteeism and employee turnover, and enhanced employee performance and efficiency. Hence, going through both of the service based company‟s human resource strategies it can be drawn out that DHL and fedex has a very fair blend of three major strategic HRM theories which are the following:
DHL Express Best practice approach- In recent years there has been heightened interest in the idea that performance improvements arise when companies use specific sets of employment practices. There are two types of view in this approach, one, the universal approach; two, bundles and high-performance working practices. Some of DHL express‟s HRM practices are exemplary and applicable to all organizations and settings, no matter what their industry, geographical location, or organizational culture (Pfeffer 1998). When it came to human resource they have been very multidimensional and have systematically concentrated on the employment security and internal labour markets, hiring and sophisticated selection, extensive training learning and development, sharing information and employee involvement, high pay contingent on company performance, reduction of status differentials. Although one of the drawbacks that DHL faced by adapting this approach is that it‟s easier to for organizations to engage in high performance practices when labour costs are low in proportion to the total cost of the business. But in times of economic downfalls these labour costs make up a high proportion of total costs, therefore during the recession on 2008-2009 Patricia Burke, vice president of labor relations at DHL Express Inc. On
Sept. 25 at Littler‟s Global Employer Institute, she recalled how DHL at the end of 2008 and beginning of 2009 had to scale back its U.S. workforce from 40,000 to 4,000 employees in order for DHL Express to return to its core business of international air express delivery. But since this alarmed as a bad sign for the company in terms of job security, when the economy gradually brightened Burke had to consider outsourcing talent other than hiring. Resource Based View (RBV)- Studying all the strategies that DHL follows it is determined that the company invests a lot on their current and potential employees, in terms of educating and training, thus making the logistics business a very potential career path. The focus of the RBV is on the personal attributes employees bring into the organization, using them to promote sustained competitive advantage and corporate growth. Unlike the best fit approach the RBV focuses on the firm‟s internal resources and the specific factors enabling the organization to remain viable in the market. DHL‟s two big examples of upholding its core competencies are; Sourcing and Talent management- During economic crisis, skilled executives and specialists are in demand so they increasingly use a variety of recruiting channels to ensure they have a competitive edge in hiring first-class specialists and executives. In 2009, DHL ranked among the top 50 most attractive employers in a survey among 120,000 university students around the globe conducted by the US consulting firm Universum. DHL was ranked 42nd overall, and was the only logistics company listed in the index. Internet Recruiting- Their careers website is one of the most important contact points for potential employees. Every year, they post more than 12,000 job vacancies online and their database already holds the details of more than 500,000 applicants. Market researchers Potential park ranked their careers portal second in Germany and third in Europe in its Top Employer Web Benchmark 2009.
CONCLUSION Over the years DHL have been on cut throat competition regionally with market share, but being a service based company it has concentrated a lot on their internal factors i.e. Human resource management strategies in order to gain competitive advantage. So from this project I have made some conclusions which are as follows,
DHL took a broad initiative to develop its talent by introducing learning establishments namely DHL Asia Pacific Learning Centre and the DHL Logistics Management University. Basically the idea behind this is to create a talent pool who will be groomed to become senior executives and other management positions. Therefore from this it shows how much DHL emphasizes on Performance & Motivational Trianing.
DHL also started Online Feedback program in which frameworks was adopted to integrate its diversity of operations and regions. The program was designed to achieve three aims: ·
Performance management
·
Talent Review
·
Senior Leadership development Program
The program was an online one whereby its managers across the globe could participate in all the three areas mentioned above Degree Feedback Program which is an example of participatory management style was useful in understanding the needs, aspirations and views of its many employees across the globe.
Health Management and occupational safety-DHL puts a lot of priority on the health and safety of their employees and the fact that they are committed to retaining them and developing their performance.
DHL Express is a division of Deutsche Post providing international express mail services. Since the company is service based and has been operating on logistics for quite a lot of years, the company have put fruitful efforts in the way they manage their Human Resources.
BIBLIOGRAPHY Human Resource Management – Vipul Prakashan
WEBLIOGRAPHY
www.dhl.co.in www.wikipedia.com www.scribd.com
INDEX SR.NO
CONTENTS
1
Executive summary
2
Objective
3
Chapter - 1
4
Chapter - 2
5
Chapter - 3
6
Chapter - 4
7
Chapter - 5
8
Conclusion
PROJECT REPORT ON “HR PLANNING & RECRIUTMENT OF DHL EXPRESS”
MASTERS OF COMMERCE(BUSINESS MANAGEMENT) SUBJECT- HUMAN RESOURCE MANAGEMENT 2013-2014
IN PARTIAL FULLFILLMENT OF REQUIREMENT UNDER SEMESTER BASED CREDIT AND GRADING SYSTEM FOR POST GRADUATE(PG) PROGRAM UNDER FACULTY OF COMMERCE
SUBMITTED BY:
PREETI FUNDE ROLL NO 15012
MULUND COLLEGE OF COMMERCE, S.N. ROAD, MULUND(W), MUMBAI-400080
CERTIFICATE
I, hereby certify that MISS.PREETI FUNDE, of M.Com in Business Management Part-1, Roll No.15012 has completed project on “HR Planning & Recriutment of DHL Express” in the academic year 2013-2014. The information submitted is true and original to the best of my knowledge.
Project Guide
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Course Coordinator
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Internal Examiner
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External Examiner
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Principal
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Place: Mumbai
Date:
DECLARATION
I, MISS.PREETI FUNDE student of M.Com in Business Management Part-1 (2013-2014) hereby declare that I have completed the project on “HR Planning & Recriutment of DHL Express ” .I further declare that the information imparted is true and fair to the best of my knowledge.
SIGNATURE (MISS.PREETI FUNDE) ROLL NO.15012
ACKNOWLEDGEMENT I hereby express my heartiest thanks to all sources who have contributed to the making of this project. I oblige thanks to all those who have supported, provided their valuable guidance and helped for the accomplishment of this project. I also extent my hearty thanks to my family, friends, our coordinator ,college teachers and all the well wishers. I also would like to thanks my project guide for her guidance and timely suggestion and the information provided by her on this particular topic. It is matter of outmost pleasure to express my indebt and deep sense of gratitude to various person who extended their maximum help to supply the necessary information for the present thesis, which became available on account of the most selfless cooperation. Above all its sincere thanks to the UNIVERSITY OF MUMBAI for which this project is given consideration and was done with outmost seriousness.
