FUTURE PROSPECTS OF HUMAN RESOURCE MANAGEMENT IN INDIA
ACADEMIC YEAR: 2010-2011 2010-2011 SUBJECT: human resources resources COLLEGE: BHAVANS
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Index No.
Contents
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Introduction Evolution of HRM in India Indian HRM in transition Functions and activities of HRM Changes in HRM Challenges of HRM HR managers should do the following things to ensure success HR managers today are focusing attention on the following Human resource management: Futuristic vision HR jobs of the future Current trends in HRM RELIANCE INFRASTUCTURE Conclusion Bibliography
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INTRODUCTION Taking a look at the world of human beings is a rewarding experience. Today, in any organization humans are treated as precious resource. They are called as assets of the organization as they bring success & prosperity. Human resource deals with human resources employed in a business unit. It is an approach to the management of people in an organization. HRM is relatively a new term for what was called as personnel management. HRM is that aspect of total business management which deals with human relationships within an organization. It represents human resource which is different from material resources. It is rightly said that organizations are not n ot mere bricks, mortar, machineries or inventories. They are people. It is the people who staff & manage organization. Human resource is the most productive & versatile. In addition, the manpower in an organization needs human treatment. Employees have the capacity to feel, think & even to react. Management has to deal with the employees in a careful & tactful manner. According to Peter Drucker, “The prosperity “The prosperity of any business depends upon the performance of its managers of tomorrow “. This suggests the importance of manpower planning & development. The material resources alone will not help the organization to achieve its objective. For this, effective coordination & utilization of material & human resources are required. This suggests the importance of human resources. Human Resource Management is a process of bringing people & organization together so that the goals of each are met". Few years back HRM field was nowhere n owhere in existence but now it is very common in Business word due to its need & importance.
DEFINITION HRM is the planning, organizing, directing & controlling of the procurement, development, compensation, integration, maintenance & separation of human resources to the end that individual, organizational & social objectives are accomplished. Thus HRM refers to a set of programmes, functions & activities designed & carried out in order to maximize both employee as well as organizational effectiveness.
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EVOLUTION Period
OF HRM IN INDIA
Development
Outlook
Emphasis
Status
Pragmatism of
Statutory,
Clerical
capitalists
welfare,
Services 1920-1930s
Beginning
paternalism
1940-1960s
1970-1980s
Struggling for
Technical,
Introduction of
recognition
legalistic
techniques
Achieving
Professional,
Regulatory,
sophistication
legalistic,
conforming,
impersonal
Administrative
Managerial
imposition of standards on their functions
1990s
Promising
Philosophical
Human values, productivity through people
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Executive
INDIAN
HRM IN TRANSITION
One of the noteworthy features of the Indian workplace is its demographic uniqueness. It is estimated that both China and India will have a population of 1.45 billion people by 2030; however, India will have a larger workforce than China. Indeed, it is likely India will have ha ve 986 million people of working age in 2030, which will probably be about 300 million more than in 2007. And by 2050, it is expected India will have 230 million more workers than China and about 500 million more than the United States of America (U.S.). It may be noted that half of India’s current population population of 1.1 billion people are under of 25 years of age. While this fact is a demographic dividend for the economy, it is also a danger sign for the country’s ability to create new jobs at an unprecedented rate. When India’s young demographic bubble begins to reach working age, India will need far more jobs than currently exist to keep living standards standa rds from declining. India today doesn’t have enough good jobs for its existing workers, much less for millions of new ones. If it cannot better educate its children and create jobs for then once they reach working age, India faces a population time bomb: The nation will grow poorer and not richer, with hundreds of millions of people stuck in poverty. With the retirement age being 55 to 58 years of age in most mo st public sector organizations, Indian workplaces are dominated by youth. Increasing the retirement age in critical areas like universities, schools, hospitals, research institutions and public service is a topic of considerable current debate and agenda of political parties. pa rties. The divergent view, that each society has a unique set of national nuances, which guide particular managerial beliefs and actions, is being challenged in Indian society. An emerging dominant perspective is the influence of globalization on technological advancements, business management, and education and an d communication infrastructures are leading to a converging effect on managerial mindsets and business behaviors. And when India embraced liberalization and economic reform in the early 1990s, dramatic changes were set in motion in terms of corporate mindsets and HRM practices as a result of global imperatives and accompanying changes in societal priorities. Indeed, the onset of a burgeoning competitive service sector compelled a demographic shift in worker educational status and heightened the demand for job relevant skills as well as regional diversity. Expectedly, there has been a marked shift towards valuing human resources (HR) in Indian organizations as they become increasingly strategy driven as opposed to the culture of the status quo. Accordingly, competitive advantage in industries like software services, pharmaceuticals, and biotechnology (where India is seeking to assert global dominance), the significance of HRs is being emphasized. These relativities were demonstrated in a recent study of three global Indian companies with (235 managers) mana gers) when evidence was presented that positively linked the HRM practices with organizational performance.
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The above figure presents the key drivers for contemporary Indian HRM trends. In the figure there are four external spheres of intervention for HRM professionals and a nd these spheres are integrated in a complex array within organizational settings. s ettings. The intellectual sphere, which emphasizes the mindset transaction in work organizations, organiza tions, has been significantly impacted by the forces of globalization. Indeed, with supporting empirical evidence from 421 senior level Indian managers, that many of the traditional Indian values (respect for seniority, status and group affiliation) have ha ve been complemented by newer areas of attention that are more usually usua lly linked to globalization, such as work quality, customer service and innovation. The most important work related attribute of the study was the opportunity to learn new things at work. Such cross verging trends need to be understood un derstood more widely as practitioners face a new reality of human hum an resource development of post industrial economic organizations. The other three spheres, in the above diagram, namely the emotional, the socio cultural and the managerial domains are undergoing, similar profound changes. For instance, the socio cultural sphere confronts the dialects of the national macro ma cro level reform agenda as well as the challenge of innovating by addressing the hygiene and motivational features of the work place. Consequently, this sphere, which is underpinned by the anchors of Sraddha and Sneha, has the opportunity to leverage work setting creativity in dimensions of autonomy, empowerment, multiskilling and various types of job design. And the emotional sphere, which focuses on creativity and innovation to encapsulate the notions of workplace commitment and collaboration as well as favorable teamwork, brings desirable behavioral elements of transparency and integrity into organizational procedures and practices. The managerial sphere provides the mechanisms for shifting mindsets, for in Indian 6
organizations HRM is viewed to be closely aligned a ligned with managerial technical competency. Thus, understanding of the relativity of HRM to strategic intended organizational performance is less well articulated in Indian firms. The current emphasis of reconfiguring cadres (voluntary and non-voluntary redundancy schemes), downsizing, delayering and similar arrangements will become less relevant as holistic perspectives gain ground. A hallmark of future Indian workplaces is likely to be a dominant emphasis on managerial training, structural redesign and reframing of institutional architectures to achieve enterprise excellence. Thus, a primary role of Indian managers will be to forge fo rge new employment and industrial relationships through purposeful HRM policies and practices. The figure below presents a variety of HRM practices that are being employed in Indian organizations. HRM Practice
Observable Features Percentage of employees with formally defined work roles is very Job Description high in the public sector. Strong dependence on formal labour market. Direct recruitment from institutions of higher learning is very common amongst amo ngst Recruitment management, engineering and similar professional cadres. Amongst other vehicles, placement agencies, internet and print media are the most popular medium for recruitment. Strong emphasis on security and lifetime employment in public Compensation sector including a range of facilities like, healthcare, housing ho using and schooling for children. Poorly institutionalized in Indian organizations. Popularity of Training and training programmes and their effect in skill and value development Development undeveloped. A very low coverage of employees under formal performance Performance Appraisal appraisal and rewards or organizational goals Moderately variable across industries. Seniority systems still Promotion and dominate the public sector enterprises. Use of merit and performance Reward limited mostly to globally orientated industries. Limited in scope. The seniority based escalator system in the public sector provides stability and progression in career. Widespread use Career Planning of voluntary retirement scheme in public sector by high performing staff. Cross functional career paths uncommon. Driven by proactive court rulings, ILO guidelines and legislature Gender Equity provisions. Lack of strategic and inclusion vision spread. The central government has fixed 15 per cent reservations for Reservation System scheduled castes, 7.5 per cent for scheduled tribes and 27 per cent for backward communities. States vary in their reservation systems.
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FUNCTIONS
AND ACTIVITIES OF HRM
In order to achieve the objectives of an organization, the HRM section or department must carry out a number of functions. The key functions of HRM can be summarized as the acquisition, maintenance, development and termination of employees: Acquisition: This is the 'getting' phase of HRM. It includes estimating both the future demand and supply for human resources and integrating these resources into a total human resource strategy. In other words, the objectives and future directions of the organization must be known before any reliable forecasts of people needs can be made. The acquiring process includes recruiting, selection and the socialization or induction of new employees.
p roviding benefits, services and Maintenance: This is the 'keeping' function and involves providing working conditions that are needed if individuals are to remain committed to the workplace. Development: This encompasses the whole domain of training and development, which has become a major area of concern and expense for organizations. Developing also includes the concepts of organizational change ch ange and development and how these processes impact upon employees.
a ctivity and is sometimes known as the Termination: This is the 'saying goodbye' activity separation phase of employment. It involves such issues as retirement, redundancy, resignation and dismissal. These issues have become of major importance in organizations in recent years. Moreover, there have been many legislative developments in Australia that have had a major impact on the arrangements for terminating the employment contract. (The Howard government is proposing further reforms to industrial relations in Australia in 2005 which will make mak e it easier for employers to terminate employees by reducing their protection against 'unfair dismissal'). The HRM functions are broad sweeping. Within each of these functions there are a number of activities that human resource specialists must carry out if these functions are to be fulfilled. Human resources activities are those actions taken to provide and maintain an appropriate workforce for the organization. The five most common activities of HRM personnel in organizations are identified as: 1) Planning for human resource needs. 2) Staffing identified personnel need. 3) Performance management and remuneration for employees. 4) Improving employees and the work environment. 5) Establishing and maintaining effective working relationships.
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CHANGES
IN HRM
Some of the significant changes that are likely to take place in the human resource management are as follows: Increase in education levels: Due to technological progress and the spread of educational institutions, workers will increasingly become aware of their higher level needs. Managers Ma nagers will have to evolve appropriate policies and techniques to motivate the knowledge of workers. Better educated and organized workforce will demand greater discretion and autonomy at the work place. Technological developments: This will require retraining and mid-career training of both workers and managers. Rise of the international corporation is proving as a new challenge for personnel function. Changing composition of work force: In future, women and minority groups, SCs and STs would become an important source of man ma n power in future on account of easy access to better educational and employment opportunities. Therefore manpower planning of every organization will have to take into in to consideration the potential availability of talent in these groups. Changing mix of the workforce will lead to new values in organizations. Increasing role of the government: In India, personnel management has become legalized. In future private organizations will have to co-ordinate their labour welfare programmes with those of the government private sector will be required increasingly to support government efforts for improving public health, education training and development and infrastructure. Occupational health and safety: Due to legislative presence and trade union movement, personnel management will have to be more healthy and safety conscious in future. Organizational development: In future, changes will have to be initiated and managed to improve organizational effectiveness. Top management will become more actively involved in the development of human resources.
organiza tion. As New work ethics: Greater forces will be on project and team forms of organization. changing work ethic requires increasing emphasis on individual, jobs will have to be redesigned to provide challenge.
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Development planning: Personnel management will be involved increasingly in organizational planning, structure, composition etc. Greater cost-consciousness and profitorientations will be required on the part of the personnel department. Better appraisal and reward systems: Organizations will be required to share gains of higher periodicity with workers more objective and result oriented systems of performance, appraisal and performance linked compensation will have to be developed. New personnel policies: New and better polices will be required for the work force of the future. Traditional family management will give way to professional management with greater forces on human dignity.
Thus, in future personnel management will face new challenges and perform new responsibilities. Participative leadership will take the place of autocratic leadership. Creative skills will have to be redeveloped and rewarded emphasis will shift from legal a nd rule bound approach to more open and humanitarian approach.
CHALLENGES
IN MODERN HUMAN RESOURCE MANAGEMENT
It is a battle where we realize that the balance ba lance comes from a lot of sharing of common chore, of sharing responsibilities and of sharing understanding most of all. The time demands implementing rigid flexibility. Globalization: Many Indian firms are compelled to think globally, something which is Rigid, hierarchical and tall structure Flexible, flat and team based Challenges Ch allenges in Modern Human Resource Management difficult for managers who were accustomed to operate in vast sheltered markets with minimal or no competition either from domestic or foreign firms. Changed Employee Expectations: Employees demand empowerment and expect equality with the management. Previous notions on managerial authority are giving way to employee influence & involvement along with mechanisms for upward u pward communication and due process. If we look at the workers’ unions union s of Otis, Hindustan Hindustan Lever, ICI, TOMCO, Blue Star, Webel Electro, and Central Bank. They rewrite their agenda to include quality and better customer service and are even accusing the management of malpractices. So every time there is need to reframe the profile of the worker and discover new methods of training, hiring, remunerating and motivating employees. Outsourcing HR Activities: The trend towards outsourcing has been caused by several strategic and operational motives. HR departments are divesting themselves from mundane 10
activities to focus more on strategic role. Outsourcing has also been used to help reduce bureaucracy and to encourage a more responsive culture by introducing external market forces into the firm through the biding process. It is a big challenge before the HR Manager to prove that his/her department is as important as any other functions in the organization. The relevance of HR is at stack. Changing Workforce Dynamics: Frequently, physical relocation is required. The increasing number of dual-career professionals limits individual flexibility in accepting such assignments and may hinder number of dual-career professional’s limits professional’s limits individual flexibility in accepting such assignments and may hinder organizational flexibility in acquiring and developing talent. Some demographic changes in the workforce having their own implications to the HR managers are: 1) Increasing number of working mothers, 2) A steady decline of blue-collar employees who are giving way to white-collar. 3) Employees, increasing awareness & education among workers. Balancing Work-life: Balancing work & life assumes relevance when both husband and Family centric, closed minded and secretive rational thinking and vibrant styles of Dispersed ownership open minded & Caste ridden, superstitious, laid-track Challenges in Modern Human Resource Management wife are employed. Troubles of a working housewife are more than a working husband, thus balancing it is becoming a major challenge for HR manager. So a programme aiming balancing work-life is required and are a re supposed to include: Childcare at or near the workplace, Job Sharing, Care for sick children and employees, On-site summer camp, Training supervisors to respond to work and family needs of employees, Flexible work scheduling, Sick leave policies, Variety of errands from dry cleaning, dropping children at schools, making dinner reservations etc and many more like the same or other. Making HR activities ethical: Hiring ethical strong employees is only the beginning. The need to institute mechanisms to ensure ethical conduct of employees is increased a lot with the passage of time. The Hr manager needs to carefully screen applications for jobs, weed out those who are prone to indulge in misdemeanors and hire those who can build a value driven organization. Organizational Restructuring: Peter Drucker prophesies in his book(The New Realities) is showing its color and many big companies has reduced their number of management man agement grades, elimination of layers, & redrawing reporting lines within their organization. organiza tion. ITC, HLL, Godrej & Boyce, RPG Enterprises, Raymond Woolen Mills, M ills, Shaw Wallace, Ballarpur Industries, Compton & Greaves are some of the companies that are doing so. Changes are required particularly during the time of Acquisitions and Mergers also a lso during the bad weather of the firm. This is of need to keep people with and working effectively and efficiently. These are done according to the changing character of competition, as major ma jor companies operate through complex web of strategic alliances of varying degrees of 11
permanence. Managing Diversity: Its value is getting more important issue because of: Increase in the number of young workers in the work-force, increase in the number of women joining the work-force, increase in the proportion of ethnic minorities in the total work-force, increase in mobility of work-force, international careers & expatriates are becoming common, international experience as a pre-requisite for career progression to many top-level managerial positions. Organizations that can ca n manage diversity better trend to be more flexible because they have broadened their policies are more open-minded, have less standardized operating methods and have developed skills in dealing with resistance resista nce to change. Attitude towards Unions: Unionization is preferable because remaining union-free costs the organization heavily. Pay raises, out of turn promotions, generous perks & other benefits need to be doled out frequently to appease workers. General perception of managers is to avoid unionization but it is very beneficial to the organization. It provides a mean for workers to express before the management conditions prevailing in the workplace. But at the same time because of voice mechanism or the instrumentality role, unionized firm have lower turnover rate and encourage organization to provide more rational and professional management. So the work of HR mangers gets tough here h ere to decide whether it should be there in the organization or not and if yes then how to control it. Strings of the union are a re required to be checked time to time for better performance in the firm.
HR MANAGERS SHOULD DO THE FOLLOWING THINGS TO ENSURE SUCCESS
1) Use workforce skills and abilities in order to exploit environmental opportunities and neutralize threats. 2) Employ innovative reward plans that recognize employee contributions and grant enhancements. 3) Indulge in continuous quality improvement through TQM and HR contributions like training, development, counseling, etc 4) Utilize people with distinctive capabilities to create unsurpassed competence in an area, e.g. Xerox in photocopiers, 3M in adhesives, Telco in trucks etc. 5) Decentralize operations and rely on self-managed teams to deliver goods in difficult times e.g. Motorola is famous for f or short product development cycles. It has quickly commercialized ideas from its research labs.
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6) Lay off workers in a smooth way explaining facts to unions, workers and other affected groups e.g. IBM , Kodak, Xerox, etc.
HR MANAGERS TODAY ARE FOCUSING ATTENTION ON THE FOLLOWING
Policies: HR policies are based on trust, openness, equity and consensus. Motivation: Create conditions in which people are willing to work with zeal, initiative and enthusiasm; make people feel like winners. Relations: Fair treatment of people and prompt redress of grievances would pave the way for healthy work-place relations. Change agent: Prepare workers to accept technological changes by clarifying doubts.
a dministration Quality Consciousness: Commitment to quality in all aspects of personnel administration will ensure success. Due to the new trends in HR, in a nutshell the HR manager should treat people as resources, reward them equitably, and integrate their aspirations with corporate goals through suitable HR policies
HUMAN RESOURCE MANAGEMENT: FUTURISTIC VISION
On the basis of the various issues and challenges the following suggestions will be o f much help to the philosophy of HRM with regard to its futuristic vision: 1) There should be a properly defined recruitment policy in the organization that should give its focus on professional aspect as pect and merit based selection. 2) In every decision-making process there should be given proper weight age to the aspect that employees are involved wherever possible. It will ultimately lead to sense of team spirit, team-work and inter-team collaboration. 3) Opportunity and comprehensive framework should be provided for full expression of employees' talents and manifest potentialities. 4) Networking skills of the organizations should be developed internally and externally as well as horizontally and vertically.
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the employee’s emphasis should be given to 360 degree 5) For performance appraisal of the feedback which is based on the review by superiors, peers, subordinates as well as selfreview. 6) 360 degree feedback will further lead to increased focus on customer services, creating of highly involved workforce, decreased hierarchies, avoiding discrimination and biases and identifying performance threshold. 7) More emphasis should be given to Total Quality Management. TQM will cover all employees at all levels; it will conform to customer's needs and an d expectations improvement in all spheres and activities of the organization. organiza tion. 8) There should be focus on job rotation so that vision and knowledge of the ; it will ensure effective utilization of resources and will lead towards continuous employees are broadened as well as potentialities of the employees are increased for f or future job prospects. 9) For proper utilization of manpower in the organization the concept of six sigma of improving productivity should be intermingled in the HRM strategy. 10) The capacities of the employees should be assessed through potential appraisal for performing new roles and responsibilities. It should not be confined to organizational aspects only but the environmental changes of political, economic and social considerations should also be taken into account.
wa y that individualizing 11) The career of the employees should be planned in such a way process and socializing process come together for fusion process and career planning should constitute the part of human resource planning. To conclude Human Resource Management should be linked with strategic goals and objectives in order to improve business performance and develop organizational cultures cu ltures that foster innovation and flexibility. All the above futuristic visions coupled with strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and an d implement by Hand.
HR
JOBS OF THE FUTURE
Though the job picture is still developing, experts see several possible critical roles on th e horizon for HR professionals. Amongst them are: The CFO for HR: This number cruncher can apply the metrics to demonstrate the inherent economic value of HR and to analyze the cost-effectiveness of various practices HR proposes or implements: How much do certain employees contribute to the bottom line?
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How much does the right training help the business? Which functions or programs do not add value and should be eliminated? co mpetencies through the The internal consultant: This person helps spread HR competencies organization, empowering line managers to recruit, interview, hire and retain the talent that they need while counseling the managers on crucial legal and ethical matters such as disability and age discrimination laws. The talent manager: This person is responsible for finding, developing and keeping the best and the brightest workers to meet the needs of the organization. He or she will manage learning and succession planning, moving people through the talent pipeline. The vendor manager: He or she determines which functions can be handled h andled better and less expensively outside the organization. This professional monitors mon itors quality and costs, stays on top of trends in this business, and maintains a close working relationship with outsourcing ou tsourcing firms and other vendors. The self-service leader: This person works with internal and outside information technology specialists to establish and run web-based portals for many automated functions, such as benefits and pension administration that employees can access from their desktop computers.
CURRENT TRENDS IN HRM
1) The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management, with renewed thrust on HR issues, more particularly on training. 2) Charles Handy also advocated future organizational models like Shamrock, Federal and Triple I. Such organizational models also a lso refocus on people centric issues and call for redefining the future role of HR professionals. 3) To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six- sigma practices. Six- sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. These practices improve organizational values and helps h elps in creating defect free product or services at minimum cost.
ma kes a traditional HR department 4) Human resource outsourcing is a new accession that makes redundant in an organization. Exult, the international pioneer in HR BPO already roped in Bank of America, international players BP Amoco & over the years plan to spread their business to most of the Fortune 500 companies.
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5) With the increase of global job mobility, recruiting competent people is also increasingly becoming difficult, especially in India. Therefore by creating an enabling culture, organizations are also required to work out a retention strategy for the existing skilled manpower. 6) The effect of the Sarbanes-Oxley Act of 2002 that protects investors by requiring management to provide accurate disclosure in accordance with securities law is causing increased scrutiny by shareholders and employees, both current and prospective. Increased concern over fiscal responsibility and integrity has the potential to impact organizational effectiveness. 7) The demand for customized employment relationships is overtaking the one -size-fits-all employment relationship of the past. Top-performing employees are looking for f or personalized career paths, tools and equipment to work from any an y location, at any hour h our of the day, and a selection of benefits that can be adjusted to meet changing needs. 8) Advancements in technology that enable employers to create virtual work teams, and automate and accelerate processes.
an d competitiveness, 9) Rising health-care costs that are threatening business growth and causing employers to constantly re-examine their benefit philosophy including shifting costs to employees. 10) Crisis management is center stage as CEOs and their HR executives face the unpredictable such as SARS, 9/11 type catastrophes and military leave. 11) Traditional compensation formulas are a thing of the past as employment relationships change and include "flex-everything"--flex-time, flex-benefits, flex-work locations. Attracting and retaining top talent will require a shift from a traditional compensation formula to a total rewards concept that includes benefits, incentives, work and lifestyle accommodations and other employer-of-choice issues.
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RELIANCE INFRASTRUCTURE COMPANY
BACKGROUND
Reliance Infrastructure Ltd is not only India’s largest private sector enterprise in power utility but also the largest private sector player in many other infrastructure sectors of India. In the power sector sector they are involved in generation, transmission, distribution and trading of electricity and constructing power plants as EPC partners. p artners. In the infrastructure space the company is focused on roads, urban infrastructure which includes MRTS, Sea link and Airports, Specialty Real Estate which includes business districts, trade towers, convention centre and SEZ which includes IT & ITES SEZ and non IT SEZ as well as free fr ee trade zones.
Power Utility Reliance Infrastructure distributes more than 28 billion units of electricity to cover 25 million consumers across different parts of the country including Mumbai and a nd Delhi in an area that spans over 1, 24,300 sq. kms. They also generate 941 MW of electricity, from their power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa. They are also emerging as one of the leading players in India in the Engineering, Procurement and Construction (EPC) segment of the power sector with an order book of Rs 8,300 crore, having executed projects worth Rs 10000 Crores in the past 4 years. They are also executing the first 100% private sector power transmission project for western grid with an investment worth Rs 2,250 crores. They are also ranked among top 5 players in power trading in the country with 1,050 MU’s traded in FY2007All FY2007All this makes them a fully integrated player in the power sector.
Infrastructure highwa y projects for the National Road: R-INFRA is the largest developer of road and highway Highways Authority of India under the build, own, transfer (BOT) scheme. With an investment involving Rs 3150 crores, the company is developing 5 major road projects in Tamil Nadu totaling over 400 kms of length. Financial closure of all the projects is done and the projects are currently under construction.
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and Urban Infrastructure: They are also the country’s first and only private sector builder and operator for Metro Systems. They are already into construction of the first line of Mumbai’s Metro system stretching 12 kms from Versova to Ghatkopar. Gha tkopar. Besides we have also won the Delhi Metro’s Metro’s airport express link stretching a length of 22.5 kms. The total investment for these two projects is Rs 4900 crores and only private sector builder to Specialty Real Estate: They are also the country’s first and build India’s first 100 storeyed building, a trade tower and business district in 80 acres a cres of land in Hyderabad. The total investment for this project is Rs 6,500 crores. Special Economic Zones: They are also developing over 180 million sq ft of SEZ for IT/ITES, retail hospitality in Mumbai and Noida with an a n investment worth Rs 31,000 crores c rores
HR PHILOSOPHY OF RELIANCE INFRASTURCTURE
The liberalization of the power sector in India has paved way for new business opportunities and has redefined the nature of the power business. Envisioning future and to make the power sector credit worthy and capable of funding future investment needs, these reforms have opened arenas for new technologies. In this new environment of opportunities, REL with its competitive edge of resources is playing a key role in the transformation process and aims to emerge as a world class power utility offering uninterrupted, affordable, quality, products and services to all customers at competitive costs, with international standards of customer care - thereby creating superior value for all stakeholders. To achieve this vision REL believes that investment in people and their potential is one of the greatest investments they can make. For this, they are constantly in search of talent that can perform excellently with determination and win. Their HR systems and policies are thereby designed to unleash the latent capability of their people by fostering a continuous learning and a nd performance based culture where their people have the opportunity to grow and succeed and an d realize their true potential while delivering high quality services. To achieve these objectives the HR Policy is pivotal and aims to: Achieve organizational and business goals with firm belief that "Our Employees are our Future". Have empowered and accountable employees to take decisions in response to emerging challenges and opportunities in a competitive environment. Endeavor to make their employees "The Best" with an urge for and commitment to excellence.
CAREERS
IN RELIANCE ENERGY LTD
Reliance Energy Ltd. offer opportunities for growth that can fill a career. Careers at Reliance Energy Ltd. are built in course of their concept of forming a team of people or individuals who are made responsible for specific functions; from concept to development to implementation, with concomitant empowerment. Reliance Energy Ltd. provides employees seamless merging of functional roles, to provide a sharper business focus & 18
groom employees for larger responsibility across industry sector. They believe, working smarter would mean not just doing a given job well, but also stretching it into a mini profitmaking project. As the transition from the old HRD to the New People Management has materialized, the HR function at Reliance Energy Ltd. has begun to play a role much mu ch broader in scope, much stronger in impact & much more permanent in effect.
CAREER
OPPORTUNITIES
1) Exposure to Latest technological know-how 2) World class management practices 3) Multifunctional skills 4) Customer Relationship Management
Con tractual aspects of business 5) Exposure to Regulatory, Legal and Contractual 6) Fast track growth
RECRUITMENT
Woven into strategic planning, recruitment in Reliance Energy Ltd. no longer involves short-term vacancy or the annual ritual of Campus Recruitment. Translating corporate strategies into a manpower plan & developing a long term programme accordingly, Reliance Energy Ltd. is tracking down people with the combination combina tion of knowledge, experience, skills & behavior best suited to achieving the company’s objectives. The focus of Recruitment: 1) Attract people with multi dimensional experiences & skills 2) Induct talent with a new perspective to lead the company 3) Develop a culture that attracts people to the company 4) Locate people whose personalities fit the company’s values 5) Devise methodologies for assessing psychological traits 6) Seek out unconventional development ground for talent
qua lity as well as quantum 7) Design entry pay that competes on quality
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8) Anticipate & find people for positions proactively
INDUCTION
1) A formal induction programme is organized for all the new employees 2) A structured Induction programme is carried out for: Lateral Joinees: This provides a general overview of the organization to the new recruits and familiarizes employees with various business processes, culture, business practices of the company. It also covers soft skills modules like Team Building, Change Management, and Communication etc.
ind uction training Graduate Engineer Trainees (GETs): All the GETs undergo a one-year induction programme. The induction programme contains the following: Technical Training; On the Job training; Class room training; Functional Training; Managerial Skill Development.
PERFORMANCE MANAGEMENT
To ensure that the talent we have ha ve attracted can help us achieve our goals, we create appropriate working conditions, by adopting following steps: 1) Evaluating all jobs so as to assign them to the individuals best suited for them 2) Designing customized jobs, if necessary, using techniques drawn for behavioral sciences & industrial psychology
a bility of the individuals 3) Creating manpower configurations to boost the ability 4) Through it all, balancing corporate & employee interests by designing individual career paths.
PERFORMANCE
APPRAISAL SYSTEM
The Performance Appraisal System in Reliance Energy Ltd. provides for: 1) Recognition of individual performance 2) Continual learning and development 3) Better skills and employability 4) Monetary and other rewards 20
5) The achievement of the organization's goals 6) Increased productivity and profitability
TRAINING
& DEVELOPMENT
With the changing business environment becoming more & more dynamic, a need on a continual basis for improved domain expertise is the need of the hour. The core function of the training department is to bridge the gap between the changing requirements of the job & the abilities that individuals need to perform these tasks such su ch as self-directed leadership, self-motivated teams & self generated creativity to excel in their respective areas of performance.
REPORT
ON VISIT TO RELIANCE INFRASTRUCTURE
We visited R-infra as a part of the project. We met the HR manager Ms. SHWETA HONAGUDI who gave us a brief overview o verview about the HR functioning of the organization. When the MUKESH AMBANI (MD) AND ANIL AMBANI (AD) groups separated in 2003 and after the takeover of BSES by the ADAG group in 2003, BSES was renamed as RELIANCE ENERGY because it was basically into power generation. Later it was renamed as RELIANCE INFRASTRUCTURE when it got into other infrastructural activities like construction of roads, metros, sea-links, sea-links, SEZ’s etc. Infra based projects are basically owned by the government, therefore when R-infra, which wh ich is obviously a private company, got into it, their HR requirements were very niche. It was not rational to hire people from countries like china to meet their HR requirements. Therefore the HR was needed to modify itself according to the needs of the organization. Since the company is a global organization, the HR department had to assume a business bus iness partnering role. Business partnering simply means that you are no more just an individual department for ex. Just an operations manager, but you become a strategic partner. Also the HR policies have been customized according to the needs of the various business categories. The recruitment is done on the basis of the job requirement. They have lateral recruitments, campus interviews etc. After the employee selection they are made to go through an an orientation process which includes briefing the employees about the policies, procedures, code of conduct and other organizational information. After this they have an induction programme. Now for the new employees the induction programme includes giving them a feel of the entire organization. The employees are taken to the DAHANU power plant where they get an overview of the working of the company. The Th e other induction programme is a one year programme for fo r the graduate engineer trainees which includes providing them technical and functional training and honing their managerial skills. 21
At a later stage, they have a leadership programme which consists of various categories ca tegories like executive leadership, middle leadership etc. for executive leadership they identify employees from middle level management who have the capability cap ability to become top management executives. For middle leadership they identify personnel who have the capability to handle middle level managerial positions like mangers etc. They Th ey try to groom their employees to take on various roles through this leadership module. Like in every organization they have monetary and non monetary benefits for the employees which include rewards and recognitions etc. They encourage healthy competition amongst the various divisions. The divisions are classified on the th e basis of their geographic distribution. Each division competes with the other where parameters for excellence include operational efficiency, financial gains, teamwork. Only when each division acknowledges the performance of the other division, that they are motivated to perform better. They have trophies like the SHINING STAR, they also have recognitions for people as well as for those teams who work together and who perform efficiently and whose work optimistically benefits the organization. Job extension may be given on the basis of observance. If the superiors su periors believe that an employee has the potential to do a job with more responsibility then they may give them job extension in their own department. In order to cope with the rising attrition rate they provide the employees with a career graph. They have a programme to identify the skills of the employees. If an employee has the potential and the skills to handle h andle other departments work he may be given a project related to the new department and eventually he may ma y be asked to handle that tha t departments work as well. This helps the individual in dividual to identify his own talents and it also works well as a career graph for the employee to realize his potential prospects in the organization. After all, ultimately what an employee wants is fulfillment of his aspirational needs, career path, monetary benefits etc. For women, they have provided a day care centre where the women can actually leave their children. They have mediclaim policies and other medical benefits which are amongst the best in the industry. They offer annual retention bonuses to the employees. They encourage a healthy work-life balance. As an organization they visualize the futuristic needs. For ex: if the company wants to grow from a 1400 million revenue company to 1800 million revenue company then it is essential to provide training to the employees so as to cope with the rising responsibilities. As far as the training needs go, the departmental heads or the organizational heads if the perceive an employee to be competent enough they provide him training to better his skills. R-infra has some copyrighted training programmes like SPARSH, UTKARSH for their customer care executives which are now being adopted by other companies as well, to identify the potential and provide the necessary training.
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The future challenges are based on the organizational objectives. Like R-infra aims at being the employer of choice, so it becomes essential that they prove themselves as the best employer in the industry. Identifying leadership qualities and the best talent from the pool of excellent employees is another challenge. R-infra is growing multifold and is venturing into sectors that have not been ever explored by it. This becomes as an ambitious plan for the company then. Thus it becomes a challenge for the HR department to prove itself by providing competent and dedicated employees who are ambitious enough to help the company scale new heights.
CONCLUSION The human resources (HR) department is critical for employee wellbeing in any an y business, no matter how small. This has h as meant a shift in the focus of HR departments from routine activities to playing a more proactive role of constantly motivating and retaining employees. Just as companies have realized the importance of customers and are taking proactive steps to ensure their satisfaction, they have also recognized the key role played by its employees in winning the battle of the marketplace. ma rketplace. A motivated and innovative employee can work wonders for a company. company . Hence getting and retaining a motivated workforce has found its way on to the CEO’s agenda. Also, the slowing economy has forced the workforce to be productive; once employees become productive, companies want to retain them at any cost. HR departments are inundated with work related to employees; some of these activities are routine, repairing little imagination and creativity. That is, mo st of the the time the HR department does activities ‘of’ the employees and not ‘for’ the employees.
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BIBLIOGRAPHY www.citehr.com www.docstoc.com www.websukat.com www.business.ezinemark.com www.rinfra.com www.accelteam.com www.scribd.com
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