Attached is my summer project report on HR Functions and Employee engagement programs used in Idea. The report includes a study of HR practises followed at Idea and a study of Employee Engagement Program and its research by done by Gallup consultancy.
I would like to express my sincere gratitude to you for your constant support and guidance in giving a detailed insight.
I would also thank my project guide at Goa institute of management Professor Christo Fernandis who helped me with his continuous guidance and support for successful completion of the project.
In this report, I have taken a look at the various HR functions at IDEA which includes Recruitment, PMS, Training, Job analysis, HRIS, Talent management, Exit interviews. The purpose of this part of the project was to understand the prevalent HR practises, understanding needs and importance of various functions and recommend any changes if necessary.
The second aspect of the project was to understand the research done by Gallup consultancy on employee engagement over 3 years for Aditya Birla Group as a whole, Idea Cellular and Idea Rajasthan and to device a more concrete mechanism for the company, which would help manager judge the engagement level among employees and improve the productivity of the individuals.
It gives me immense joy and pleasure in acknowledging the invaluable and co-operative assistance extended to me by various individuals who are all very great personalities in their respective fields and interest, in successfully completing my summer internship.
First of all I would like to express my sincere gratitude to my guide Mr. Viresh Meena, Sr. Manager, Idea cellular, Rajasthan, for his valuable time and assistance provided. I am grateful to him for making all the facilities available to me for the period of my summer internship.
I also thank the faculty members and staff of Goa Institute of Management for their constant encouragement and support.
Transmittal Document 2
Industry Profile 6
IDEA CELLULAR LIMITED 6
Organisational structure 8
HR @ IDEA 9
Hr Practices 9
KPIHYPERLINK “#__RefHeading__17602_1569172276″‘HYPERLINK “#__RefHeading__17602_1569172276″s For Hr Practices 9
Objective of Hr Practices 10
Recruitment and Selection: 10
Performance Management System 13
Training and Development 15
Talent Management 16
Job Analysis HYPERLINK “#__RefHeading__17614_1569172276″&HYPERLINK “#__RefHeading__17614_1569172276” Evaluation 17
Compensation Philosophy 18
Human Resource Information System 19
Exit Interviews 23
The Gallup organisation and its research 25
Employee Engagement and Gallup’s Q12 26
Gallup @ IDEA 28
Manager’s initiative for employee engagement 29
Telecommunication Sector Opportunities in India have grown phenomenally in the past 3 years as has been surveyed by Indian Ministry of Communications and Information Technology in New Delhi very recently. The telecom sector is one of the leading contributors to India’s flourishing economy.
According to the report presented by taking into account the statement of Indian Ministry of Communications and Information Technology, the telecom opportunities in India has been growing by 20 to 40 percent every year since past 3 years. The telecom services in India have been recognized as a world-class tool for the socio-economic development in India. India is known to rank fourth in the telecom industry in Asia after China, Japan, and South Korea and the telecom network in India is known to stand in the eighth position across the globe and second among the emerging economies. The Indian Telecom Analysis (2008-2012) report by RNCOS Industry Research Solutions shows that mobile telecom segment has surpassed all other segments in the Indian telecom sector. (The mobile telecom market is forecast to grow at a compound annual growth rate of around 15 per cent between 2009-10 and 2013-14.) The report also indicates that the advance of services such as Internet Protocol television (IPTV) and 3G are fuelling the growth of the Indian telecom sector. Additionally, with 3G auctions scheduled for February 13, 2010 is expected to set in motion the quick adoption of 3G enabled handsets.
IDEA CELLULAR LIMITED
IDEA Cellular Limited was incorporated in 1995 and is one of the leading GSM mobile services operators. Headquartered in Mumbai, it has licenses to operate in all 22 service areas across the country, though commercial operations are currently in 13 services areas.
IDEA enjoys a market leadership position in many of its operational areas. It offers GPRS on all its operating networks for all categories of subscribers, and was the first company in India to commercially launch the next generation EDGE technology in Delhi in 2003. As a pioneer in technology deployment, it has been in the forefront through the adoption of bio fuels to power its base stations, and by employing satellite connectivity to reach inaccessible rural area
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IDEA has been a leader in the introduction of value-added services, and there are several firsts to its credit, including a voice portal ‘Say Idea’, Idea TV, voice chat, instant messenger, and many more. Tariff plans have been customer friendly; catering to the unique needs of different customer segments. In 2007 IDEA was listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
With a vision of delighting its customers while meeting their individual communication needs anytime, anywhere, IDEA offers seamless coverage to roaming customers traveling to any part of the country, as well as to international traveling customers across over 200 countries. IDEA Cellular has partnership with over 400 operators to ensure that customers are always connected while on the move, within the country or other parts of the world.
IDEA is the winner of ‘The Emerging Company of the Year Award’ at The Economic Times Corporate Excellence Awards 2008-09. The company has received several other national and international recognitions for its path-breaking innovations in mobile telephony products & services. It won the GSM Association Award for “Best Billing and Customer Care Solution” for 2 consecutive years. It was awarded “Mobile Operator of the Year Award – India” for 2007 and 2008 at the Annual Asian Mobile News Awards
“We will delight our customers while meeting their individual communication needs anytime anywhere”
Board of Directors
Mr. Kumar Mangalam Birla (Chairman)
Smt. Rajashree Birla
Mr. Saurabh Mishra
Mr. Sanjeev Aga (Managing Director)
Mr. Arun Thiagarajan
Ms. Tarjani Vakil
Mr. Mohan Gyani
Mr. Gian Prakash Gupta
Mr. R.C. Bhargava
Mr. P. Murari
Mr. Biswajit A. Subramanian
Dr. Hansa Wijayasuriya
Corporate Leadership Team
Mr. Sanjeev Aga, Managing Director
Mr. Akshaya Moondra, Chief Financial Officer
Mr. Anil K. Tandan, Chief Technology Officer
Mr. Prakash K. Paranjape, Chief Information Officer
Mr. Pradeep Shrivastava, Chief Marketing Officer
Mr. Navanit Narayan, Chief Service Delivery Officer
Mr. Vinay K. Razdan, Chief Human Resource Officer
Mr. Ramjet K. Mukarji, Chief Corporate Affairs Officer
Mr. Rajesh K. Srivastava, Chief Materials & Procurement Officer
Mr. Ambrish Jain, Director – Operations
Mr. Himanshu Kapania, Director – Operations
HR @ IDEA
The success of any business depends as much on appropriate, effective, well-communicated, HR and business practices as it depends on meeting the requirements of mandated laws and regulations. In fact, good planning and the development of effective practices make regulatory compliance much easier. HR practices helps in increasing the productivity and quality, and to gain the competitive advantage of a workforce strategically aligned with the organization’s goals and objectives.
KPI’s For Hr Practices
Some of the key performance indicators for Human Resources include but are not limited to the following.
Employees’ clarity on HR policies
Employees’ clarity on roles, responsibilities and expectations
Development of qualitative staff
Number of HR issues arising for which there are no clear policies and guidelines
Competitiveness of compensation structure relative to industry benchmark
Usefulness and accuracy of compensation survey
Lead time to respond to staff welfare issues
Employees’ assessment of promotion criteria and process (clarity, fairness)
Measurement of HR policy violation
Average time required to fill vacancies
Proportion of training programs resulting in productivity improvement
Staff attrition rate
Understanding / Clarity of the Organizational philosophy
Outline Internal capabilities and identify gaps on skills-competencies-behavioral aspects
Prepare HR strategic Objectives and bring in clarity as to how the HR strategy supports the organizational strategy
Develop KPI’s for each of the strategic objectives.
Track and measure performance
Human Resources Best Practices
The best practices in the management of human resources are the ones which optimize a workforce so that it can not only get work done, but also ensure a greater level of efficiency, timeliness and quality as it accomplishes increases productivity overall.
Hence the job of the best practices human resources firm is to make sure that these benefits and pay scales meet the company’s budget while remaining attractive and competitive enough to pull in the very best talent possible. We should know that these figures put the company in a good light while also presenting themselves as engaging and competitive for company’s recruitment efforts.
Objective of Hr Practices
The main objective of HR Practices is to differentiate the organization from its competitors by effective and efficient HR Practices. By following this, the organization does its whole work process. The objective of HR Practices is to increase productivity and quality, and to gain the competitive advantage of a workforce strategically aligned with the organization’s goals and objectives.
Recruitment and Selection:
Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedules and to employ the effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. Edwin B. Flippo has defined it as ” the process of searching for prospective employees and stimulating them to apply for jobs in the organization. “
OBJECTIVES OF RECRUITMENT
â€¢ To attract people with multi-dimensional skills and experiences that suti the present and future organizational strategies,
â€¢ To infuse fresh blood at all levels of the organization,
â€¢ To develop an organisational culture that attracts competent people to the company,
â€¢ To search for talent globally and not just within the company,
â€¢ To design entry pay that competes on quality but not on quantum,
â€¢ To anticipate and find people for positions that do not exists yet.
â€¢ Finding out the requirement (hiring vs. Exit), upcoming vacancies, and kind of employees needed.
â€¢ Developing suitable techniques to attract suitable candidates.
â€¢ Stimulating as many candidates as possible.
Factors effecting recruitment
Employer’s brand Company’s pay package
Quality of work life
Organisation culturecareer planning & growth
Company’s products, services
Role of trade unions
Cost of recruitment
Company’s name & fame.
Supply & Demand factors
Labour market conditions
Political, Legal, Governmental factors
SOURCES OF RECRUITMENT
Dependent of present
Employee Referrals Trade Unions
Mergers & Acquisitions
Private employment consultant
The recruitment process starts from the requirement of different departments. Then they tell to the HR Department. HR Department takes the candidates from Data bank of company, Poornata etc, then does the short-listing, then does the scheduling for the interview. After this the selection and negotiation process occurs. Then offer letter is been given to the selected candidate. The employee then joins in the organization. Then the company arranges the Induction Program for the employee. After this the recruitment process ends with this.
Hence the process can be represented as :
Requisition for Vacancy to be as per Org Chart
Scheduling the interview
Selection & !Egotiation
It is one area where the interference of external factors is minimal. Hence the HR department can use its discretion in framing its selection policy and using various selection tools for the best result. Recruitment of staff should be preceded by:
An analysis of the job to be done (i.e. An analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage.
Performance Management System
It is a structured method of formally and objectively evaluating employees’ performance with respect to their objectives. It addresses the issue of an employee’s development by providing them with structured and in-depth analysis of strengths and areas of improvement. It provides with input for annual increments, training and development.
For an organization the aim should not be just to have the best people, but also to retain them and get best out of them. Employee Performance management includes planning work and setting expectations, developing the capacity to perform, continuously monitoring performance and evaluating it. Most organizations focus on an annual evaluation process for employees and call that Performance Management. However, annual evaluations are often subjective and can lack specific measurements and supportive data to help the employee truly improve their behaviour. Simply putting, a Performance Management System is essential to the success of any organization because it influences the effort expended by employees, which in turn, drives bottom-line business results. Furthermore, the Performance Management System helps an organization identify, recruit, motivate, and retain key employees.
An effective Performance Management System should achieve the following:
Review the employment cycle of every employee,
Beginning with the recruiting process,
Ending with effective exit interviews.
Employee’s knowledge, skills, and abilities with the organization’s human capital needs and business objectives.
Provide managers and employees with the tools necessary to focus on short-term and long-term goals that contribute to both career and organizational success.
Support the organization in developing and sustaining a culture that recognizes and rewards individual contributions and team performance.
Promote a work climate that requires employees to remain flexibly focused. For instance, employees can manage current tasks and unit goals while keeping pace with, and adapting to, change in the work environment.
HR Performance Management System can be performed in three steps:
Development of effective Performance Management System.
Document HR decisions with regards to performance & its related issues.
Determine promotion of employees.
Determine increment in pay of employees.
Determine transfer & change in job assignments.
Determine retention or termination.
Decide on layoffs.
Decide need for training
Decide salary & related issues.
Provide performance feedback to all concerned.
Identify individual skills, core competencies, strength & weaknesses.
Assist employees in setting goals.
Identify training needs.
Method employed –
Rating & Contribution
Management by Objectives (MBO)-
MBO is a process whereby superior & subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibilities in terms of results expected of him & use these measures of guides for operating the unit & assessing the contribution of its members. The MBO focuses attention on participative set goals that are tangible, verifiable & measurable. The superior & subordinates jointly determine goals to be considered during appraisal period & what level of performance is necessary for subordinates to satisfactorily achieve specific goals. During performance appraisal period the superior & subordinates update & alter goals as necessary due to changes in business environment. If not achieved identify reasons for deviation.
System of Performance Appraisal –
A) Establish Performance Standard.
B) Communicate standard & expectation to employees.
C) Measure actual performance, by following instructions.
D) Adjust actual performance due to environment influence.
E) Compare actual performance with set standards & find out deviations.
F) Suggest changes in job analysis & standards if necessary.
G) Follow up.
Error of central tendency.
Mainly the performance management is done by online system includes the following basic processes
1. Annual goal setting
2. Midyear review
3. Annual performance review
Training and Development
The needs of individual are objectively identified & necessary interventions are planned for identified groups, which get rolled out in a phased manner through training calendar. The training and development program is charted out to cover the number of trainees, existing staff etc. The programs also cover the identification of resource personnel for conducting development program, frequency of training and development programs and budget allocation. Training and development programs can also be designed depending upon job requirement and analysis. Selection of trainees is also facilitated by job analysis. The company has a strong focus on manpower training according to their requirements. The internal training department aims at improving the skill sets relevant to the work profile of employees. This includes
The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clears what goal has to be achieved by the end of training program i.e. What the trainees are expected to be able to do at the end of their training. Training objectives assist trainers to design the training program.
Identification of Training Needs (Methods)
Individual Training Needs Identification
1. Performance Appraisals
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales
Group Level Training Needs Identification
1. Organizational Goals and Objectives
2. Personnel / Skills Inventories
3. Organizational Climate Indices
4. Efficiency Indices
5. Exit Interviews
6. MBO / Work Planning Systems
7. Quality Circles
8. Customer Satisfaction Survey
9. Analysis of Current and Anticipated Changes
Benefits of Training Needs Identification
1. Trainers can be informed about the broader needs in advance
2. Trainers Perception Gaps can be reduced between employees and their supervisors
3. Trainers can design course inputs closer to the specific needs of the participants
4. Diagnosis of causes of performance deficiencies can be done.
It is a holistic and systematic process, across the group. It is built on the work done so far on people processes, and has a Talent Identification and Talent Development Strategy for all the 3 levels of management i.e. Senior, Middle & Junior Management. This is facilitated by Development Assessment Center followed by Individual Development Plan, enabling planned succession and career management.
The talent management process includes HR process for
Learning and other capabilities around self-service,
With businesses going global and competition becoming intense, there is mounting pressure on organizations to deliver more and better than before. Organizations therefore need to be able to develop and deploy people who can articulate the passion and vision of the organization and make teams with the energy to perform at much higher levels. Talent management is a key business process and like any business process takes inputs and generates output. Talent management is a professional term that gained popularity in the late 1990s. It refers to the process of developing and fostering new workers through on boarding, developing and keeping current workers and attracting highly skilled workers to work for your company. Talent management in this context does not refer to the management of entertainers. Companies that are engaged in talent management (human capital management) are strategic and deliberate in how they source, attract, select, train, develop, promote, and move employees through the organization. This term also incorporates how companies drive performance at the individual level (performance management).
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Job Analysis & Evaluation
It is broadly categorized in two parts. Job Analysis is a process to understand the job, identify and disaggregate the activities, competencies and accountabilities associated with the job. It defines and clusters the task required to perform the job. It also clarifies boundaries between jobs. The output of Job Analysis exercise is referred to as job description.
Process of Collecting Information
“Job Analysis is a process of studying and collecting information relating to operations and responsibilities of a specific job. The immediate products of this analysis are ‘Job Description’ and ‘Job Specifications’.”
Systematic Exploration of Activities)
“Job Analysis is a systematic exploration of activities within a job. It is a basic technical procedure that is used to define duties and responsibilities and accountabilities of the job.”
Identifying Job Requirements
“Job is a collection of tasks that can be performed by a single employee to contribute to the production of some product or service, provided by the organization.
Each job has certain ability requirements (as well as certain rewards) associated with it. Job Analysis is a process used to identify these requirements.” Each job is a unique description of a role that a person can hold in an organization or required to be performed for the business benefit of that organization. When jobs are created, their tasks and requirements are taken into consideration. Jobs are used in the following components:
Job and Position Description
Personnel Cost Planning
Career and Succession Planning
It is an outcome of what the Organization would like to pay for, which is determined by external and internal factors. All the processes are aligned to reinforce the philosophy. The company views compensation not only as something that reflects on the pay slip or in the CTC (Cost To Company) but also they are concerned about overall employee well being though they may not put any monetary value on items like Scholarships, Club membership, Retirement benefit, Health and Accident coverage.
The Group’s approach towards various aspects of compensation focuses on:
Pay for performance (Variable Pay)
Rewards stretch performance which is linked to business, team and individual results
Pay for the job
Internal equity based on contribution to the organization
Relevant industry segment and people market
Parameters beyond compensation: head count/ level/ reporting
Individual profile and performance
To be market aware, not blindly follow market practices
Tax efficient but compliant
Common perk structure but varying amount
Three major terms used in the company’s compensation:
1. Fixed Cost: It is the fixed component of the salary that is committed to an employee and is paid on monthly / annual basis. This includes base salary, all perks and reimbursements and retrials such as PF, Gratuity and Superannuation.
2. Variable Pay: This is the variable component, payout of which is contingent on Business, Unit/Zone and Individual performance. Targets for the year will be fixed and communicated at the beginning of every performance year
3. Cost to Company: This is a sum of Fixed Cost and Variable Pay.
CTC is decided based on designation, qualification and experience. Basic is around 42% of fixed cost without housing. Perks and allowances are fixed as per the designations. Variable pay based on job band is payable at 18%, 15% and 12% of fixed cost without housing. Balance amount is paid as special allowance.
Human Resource Information System
POORNATA, an ERP (People soft) implementation of Human Resource practices has been introduced in ABG to elevate HR processes to world class levels and standardize them across Units and Businesses. This has resulted in single integrated HR-ERP for all management cadre employees of the group. These automated HR Processes will also aid in faster, efficient, timely and accurate data availability to Management for decision-making. Idea’s People Soft Enterprise Performance Management (EPM) enables it to achieve world-class performance by aligning the right information and resources to strategic objectives. People Soft EPM offers performance management solutions for every budget and every phase of the management cycle, helping its managers to formulate strategies for profitable growth, align strategies with operational plans, and actively monitor day-to-day operations. Poornata helps a lot in the different works of the organization. It helps in the following ways
It helps in entry of all the database of all the employees.
It reduces time to note all the databases of the employees.
It reduces different mistakes or errors while maintaining the databases
It helps in doing performance appraisal of the employees.
It also helps in doing the data updation of the employees.
It helps in recruitment and selection of the employees
It reduces the time of the work
It also reduces the no of employees for maintaining the database.
It helps in maintaining the job description of employees.
It records the compensation details for the employee.
Once the data of an employee entered in to Poornata (ERP), the employee gets a Poornata ID, which helps the employees to know about the different policies of Organization.
They can know these policies directly from the ERP system.
As it done only through Online, there is no delay in getting different infomations.
It also helps them to do the reporting to the concerned person.
They can also fill their problems which they face during their work and send to their
In this way Poornata helps not only the managers but the employees also. Poornata (ERP) helps Idea in the following ways:
Poornata helps in performing day to day roles.
Introduction – Poornata helps in creating and updating of the positions of the employees.
Each position will correspond to specific vacancy in the organization, have a specific headcount defined for it and is also tied to the following specific attributes:
Reporting to position (The position to which this particular position reports to)
Every time one or more of the above attributes change, the same have to be updated for the position, or a new position may need to be created corresponding to the new combination of the attributes. Any individual who occupies a position will inherit the above-mentioned attributes of the position.
A position is thus specific and particular opening in the organization, as opposed to job codes, which are more generic in nature. Job codes reflect the job points of the jobs across the organization, whereas a position number reflects a specific job description in the organization.
Poornata helps and gives hints and warns the user the important information he must know about the Poornata system.
It provides the additional information to assist the user & provide key information.
It also tells the frequently asked questions with respect to hiring employees.
It also shows the common error and warning messages that the user may get at the time of hiring.
It needs the information about regarding these:
Job code (the job points of the employee),
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