A

PROJECT REPORT

On

Overview of Human Resource Management

At

GRASIM LTD. Fibre Division

Nagda, Madhya Pradesh

For the Partial fulfillment

of

MBA DEGREE

During Session 2013 - 2014

Sinhgad Institute of Management

Pune

Guided By :

Mr. Nirbhay Gupta (AGM - GRASIM LTD.)

Ajay Maheshwari (Deputy Manager - GRASIM LTD.)

Submitted By :

Tanay Yadav

Tushar Nagori

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DECLARATION BY STUDENT

Date Tanay Yadav

Place

Tushar Nagori

We Student of Sinhgad Institute of Management (SIOM), Pune declare that this project report

entitled "Overview of Human Resource Management at GRASIM Fibre Division" is and off

original piece of work done and submitted by us towards partial fulfillment of our post graduate

degree of MBA, Under the guidance of Mr. Nirbhay Gupta, AGM - GRASIM LTD. and Mr.

Ajay Maheshwari, Deputy Manager - GRASIM LTD., Aditya Birla Group, Nagda.

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ACKNOWLEDGEMENT

Tanay Yadav

Tushar Nagori

In an ecstasy of immense delight we feel deficient of words to express my deep sense of

gratitude to Kumar Mangalam Birla, Chairperson, GRASIM LTD. The project was completed

under the guidance of Mr. Nirbhay Gupta, AGM GRASIM LTD. and Mr. Ajay Maheshwari,

Deputy Manager - GRASIM LTD., Aditya Birla Group, Nagda by whose support and

encouragement we have been able to successfully complete the project at Human Resource

Department, GRASIM (Fibre Division), Nagda. The creation of this project took the sincere

dedication and the hard work of many persons by their co-operation, co-ordination and

combined efforts with their resources of knowledge, inspiration and energy. It is my great

pleasure to thank and acknowledge them here we feel grateful to acknowledge the tremendous

amount of help received by my esteemed faculty Ms Somya Jaswant Mam and Mr. Devidas

Goalkar Sir. Furthermore, I wish to thank Mr Nilesh Gokhale (Dean SIOM), my parents and

friends for providing excellent reference and light environment which was a very much

quintessence in the completion of the winter project named "Overview of Human Resource

Management at GRASIM Fibre Division".

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TABLE OF CONTENTS

1. OBJECTIVES OF THE PROJECT ................................................................................................... .... 5

2. SCOPE OF THE PROJECT .................................................................................................................. 6

3. ORGANISATION PROFILE ........................................................................................................ ........ 7

4. MANAGEMENT TEAM ............................................................................................................... ....... 9

5. MONTHLY PERIODIC REVIEW ...................................................................................................... 10

6. RECRUITMENT PROCESS ......................................................................................................... ...... 12

7. TALENT MANAGEMENT ................................................................................................................ 17

8. PERFORMANCE APPRAISAL ......................................................................... ................................ 18

9. PERFORMANCE MANAGEMENT SYSTEM ................................................................................. 19

10. INDUSTRIAL RELATION ................................................................................................................. 21

11. BIBLIOGRAPHY ............................................................................................................... ................. 22

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OBJECTIVE OF THE PROJECT

To get an overview of Human Resource management at GRASIM LTD. (Fiber Division).

To understand the Human Resource policies.

To understand the Steps involved in Recruitment Process and policies.

To understand the Performance Management System.

To know the steps involved in the monthly progress review.

To ascertain frequency of Performance Appraisal.

To understand the means of talent management.

To get glimpse about the Industrial Relations and Collective Bargaining.

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SCOPE OF THE PROJECT

Human Resource Policies at GRASIM LTD.(Fiber Division).

Management Team and Structure.

Monthly Progress Review.

Rectruitment Process and Policies.

Process of Selection of a candidate.

Performance Management System.

Talent Management

Industrial Relation.

Collective Bargaining.

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ORGANISATION PROFILE

Grasim Industries, a flagship company of the Aditya Birla Group, ranks among

India's largest private sector companies, with a consolidated net revenue of Rs 216

billion. Established in 1954, Today Grasim's business also includes the manufacture

of viscose staple fibre (VSF), cement and chemicals.

Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made, biodegradable fibre with

characteristics akin to cotton. As an extremely versatile and easily blendable fibre, VSF is widely used

in apparels, home textiles, dress material, knitted wear and non-woven applications. Grasim's VSF

plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka, with an

aggregate capacity of 352,225 tpa. .

Nagda is its largest unit producing a wide range of VSF to suit customer requirements in terms of

length, denier and colour and also second and third generation fibres like Modal, Excel and Solvent

Spun fibres, respectively. Nagda is also the largest producer of spun-dyed specialty fibre in the world.

Grasim has following Joint Ventures overseas:

1. AV Cell Inc. and AV Nackawic Inc. in Canada :

AV Cell and AV Nackawic supply dissolving grade pulp to the Group’s VSF units in India, Thailand

and Indonesia.

2. Domsjö Fabriker AB in Sweden :

Grasim acquired one-third stake in Domsjö Fabriker AB, a leading Swedish speciality pulp and bio-

refinery company in June 2011. With this acquisition, Grasim is assured of high-quality dissolving

grade pulp.

3. AV Terrace Bay Inc. in Canada :

In line with the strategy to secure key inputs, Grasim acquired assets of Terrace Bay in July 2012 in JV

with Thai Rayon, a Group company.

4. Birla Lao Pulp & Plantation Limited in Laos :

To further strengthen the backward integration in pulp, Birla Lao has been formed as a JV with other

associate companies for raising captive plantations at Laos. This will provide a low cost source for

wood to meet future requirements of a green field pulp plant in due course of time.

5. Birla Jingwei Fibres Company Limited in China :

Through Birla Jingwei, Grasim has its footprint in China, the largest VSF market globally. Plant

capacity was doubled in 2012 and currently the capacity is 72,000 TPA.

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The business was established in 1954 with Plant & Equipment imported from Dobson & Barlow of

U.K. and having a production capacity of 15 TPD. Grasim today is a dominant player in the Viscose

Staple Fibre (VSF) segment and this is particularly commendable because of its use of entirely

indigenous resources including raw materials, know-how and equipment. An innovative and research-

oriented organisation, Grasim has emerged as one of the world’s most cost-efficient VSF producers due

to its integrated operations.

Grasim is also India’s largest producer of Sodium Sulphate – a bye-product of VSF manufacture. This

chemical is used widely in paper & pulp, detergent, glass and textiles industries. Pulp & Fibre Business

contributes significantly to the National Exchequer by way of Excise duty and also to India’s foreign

exchange reserves through export of Pure and Blended Yarn as well as fabrics and Made-ups based on

VSF. Grasim has positioned itself as a dependable supplier of cellulosic fibres for “Feel, Comfort and

Fashion” across global markets. To penetrate into niche market segments and to grow further, the

division has ventured into the production of high performance viscose fibres aptly named Viscose Plus,

High Wet Modulus Fibres (Modal) and new generation Solvent Spun Fibres and Birla Excel. Grasim is

also the largest producer of Sodium Sulphate, a by-product of VSF manufacture. This chemical is

widely used in the paper and pulp, detergent, glass and textile industries.

Vision :

To be a premium global conglomerate with a clear focus on each business.

Mission :

To deliver superior value to our customers, shareholders, employees and society at large.

Values :

Integrity

Commitment

Passion

Seamlessnes

Speed

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MANAGEMENT TEAM

The management team of aditiya birla group which provides strategic direction to group companies

consists of following board of directors :

Mr. Kumar Mangalam Birla (Chairman)

Mr. K.K. Maheshwari (Wholesome Director)

Mr. S Aga

Mr. D. Bhattacharya

Mr. S.K. Jain

Dr. S. Mishra

Mr. S. Mishra

Dr. B.K. Singh

Mr. Vikram Rao

Mr. Ajay Srinivasan

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MONTHLY PROGRESS REVIEW

Monthly progress review deals with the following :

I. Production, sales, profitability and deviation w.r.t. Budget.

II. Plant performance statistics :

This consists of -

a. Quality wise production of fibre.

b. Production of sodium sulphate, CS2 and acid.

c. Consumption ratio of raw material / utility.

d. Sale/purchase of CS2/ acid and steam / power.

III. Fibre quality and coustmer complaint details :

Fibre quality: consist of various quality parameters

Coustmer complaint of fibre are clubbed under the heads like -

a. Aesthetics.

b. Intrinsic.

c. Logistics.

IV. Stores / Spares & Repairs Expenses :

It consists of -

a. Stores Spares.

b. Plant Repair.

c. Building Expenses.

V. Processing Losses :

Details of viscose losses in viscose and spinning.

VI. Downtime :

It consists of downtime of the following major equipments -

1. Viscose –

Simplex.

Press.

GCF – 1st , 2

nd and 3

rd Stage.

2. Spinning –

Spinning Machines.

Dryer.

3. Auxiliary or Recovery –

MSFE.

Crystalliser.

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Anhydrous Evaporator.

4. CS2 Furnance.

5. Acid Plant.

Preventive maintainance and Spillage report of spinning machines.

VII. Details of Workers / Staff :

Department wise details of norms and physical attendance.

VIII. CS2 Plant Performance.

IX. Power Plant working.

X. Waste Laod Report.

XI. People Development and Training of Staff – Work Report.

XII. Lubricating oil status.

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RECRUITMENT PROCESS

Step 1 : Identification of Vacancy and Evaluation of Need :

Requisition Management is the responsiblity of Hiring Managers. They are responsible for hiring

Planning, Meeting do decide on the Recuirement, Skills and Sources. Although there is work involved in

the hiring process, proper planning and evaluation of the need will lead to hiring the right person for the

role and team. The hiring takes place when there is a newly created position, replacement or retirement.

Step 2 : Develop Position Description :

A position description also referred to as a job description is the core of a successful recruitment process.

From job description, Interview questions, evaluations and reference check questions are developed. This

may be essential to design a new description when hiring is done for a newly created position

Step 3 : Developing a Recruitment Plan :

Each position requires a documented Recruitment Plan which is approved by the organizational unit. A

carefully structured recruitment plan maps out the strategy for attracting and hiring the best qualified

candidate and helps to ensure an applicant pool which includes women and underrepresented groups

including veterans and individuals with disabilities means it should comply with the organisation policies.

Step 4 : Select Search Committee :

To ensure applicants selected for interview and final consideration are evaluated by more than one

individual to minimize the potential for personal bias, a selection committee is formed. The hiring

manager will identify members who will have direct and indirect interaction with the applicant in the

course of their job.

Step 5 : Post Position and Implement Recruitment Plan :

Once the position description has been completed, the position can then be posted to the online portal of

GRASIM LTD. career site. Every effort is made to ensure the accuracy of the job description and posting

text. As in some instances, It is not possible to change elements of a posted position. The reason for this

has to do with the impact a given change may have on the applicant pool.

Step 6 : Review Applicants and Develop Short List :

Once the position has been posted, candidates will apply via Online Portal. Candidates will complete an

electronic applicant for each position. Candidates are considered as “Applicants” or “Expressions of

Interest”. All applicants are reviewed and considered.

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Step 7 : Conducting Selection Prcess :

It is the opportunity for the employer and prospective employee to learn more about each other and

validate information provided by both. By following these interviewing guidelines, the hiring managers

ensure that they have conducted a thorough interview process and have all necessary data to properly

evaluate skills and abilities.

Phone Interviews - A phone interview is conducted to initially screen the applicant for information such

as availability, venue and other preliminary information.

Selection Process :

1. Identification of Appropriate Source : The first step in the selection process is selection of appropraiate

Sources among Internal and External Sources. More focus is on Internal Recruitment System and

employee refferals in case of using internal source, while external sources involve requisition on the

Online Portal, Naukri.com, Monster.com etc and Finally, Requisition is posted on all the Portals.

2. Advertising the Job : This step is to advertise the job. The job can be advertised through various media.

The right details about the job and the candidate are given in the advertisement.

3. Initial Screening : The initial screening is done of the applications and of the applicant. Usually, a

Junior executive does the screening work. At this stage, the executive checks on the general personality,

age, qualifications, family background of the candidate. The candidate may also be informed of salary,

working conditions etc. During this step.

4. Tests : Various tests are conducted to judge the ability and efficiency of the candidates. The type of

tests depends entirely upon the nature of the job. An important advantage of testing is that it can be

administered to a large group of candidates at a time and saves time and cost.

The various tests are :

(a) Personality Test

(b) Intelligence Test

(c) Performance Test

(d) Stress Test

(e) Knowledge Test

(f) Skill Test etc.

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5. Interview : It is a face to face exchange of views, ideas and opinions between the candidate and

interviewer or panel. There may be various types of interviews depending on the job requirement

such as :

(a) Panel Interview

(b) Individual Interview

(c) Group Interview

(d) Stress Interview

(e) Exit Interview.

6. Reference Check : A candidate in this step is asked to provide atleast three references from those who

are willing to supply or confirm about the applicant’s past life, character and experience. Reference check

helps to know the personal character and family background of the candidate. It helps to guard against

possible false information supplied by the candidate.

7. Medical Check : Medical examination of the candidates is undertaken before they join the firm in order

to find out whether the candidate is physically fit to carry out duties and responsibilities effectively as

whether the candidate is sensitive to work place as in a chemical factory there may be certain mandate

requirements.

8. Final Interview : Before making a job offer, the candidates is subjected to one more oral interview to

find out his or her interest in the job and their expectations. At this stage, salary and other perks may be

negotiated.

Step 8 : Job Offer or Final on-boarding :

Once the selection process have been completed, the committee meet to discuss the interviewees decision.

Committee members assess the extent to which each one met their selection criteria. This is the most

crucial step in recruitment process. A wrong selection of a candidate may make the company to suffer for

a good number of years and the loss is incalculable. Hence, it is ensured that most accurate decision to

offer right job to the right person is carried out.

It may involve : Negotiating the Offer, Countering the Offer, Finalizing the Offer.

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MAJOR POLICIES :

Internal Recruitment System or Employee referals :

Internal recruitment is filling of job vacancy by one of the employee from within the organisation.

Internal vacancies are advertised within the organisation through staff notice board or intranets or

even during staff meeting. It helps in giving existing employees a good opportunity to advance in

their careers in the organisation.

Reference Check :

According to this policy, The applicant for a Job needs to provide minimum of three references who

are willing to supply or confirm about the applicant’s past life, character and experience.

Near Relation Policy :

According to this policy, the employees who may have any blood relation or any other near relation

with the other employee are not kept in the same department so as to avoid any influential position

which could lead to bias decisions which may not comply with organisations objectives.

Band System :

GRASIM LTD. Follows Bands system according to which there are total 13 Bands which are

assigned by Group HR, Business Hr, Unit HR or they might work in sink to take the decision and as

the employee gets the bands he is entitled for promotions and the other benifits thereof.

POST SELECTION

INDUCTION PROGRAM

Induction Process is a vital part for newly joined employees. Good induction program ensures that new

joiners are retained, and then settled in quickly and happily to a productive role. Induction training is all

about training employees in respect to : what the work shifts are; where the notice-board is; what the

routine is for holidays, sickness; where the canteen is; what's the dress code etc. New employees also

need to understand the organization’s mission, goals, values and philosophy; personnel practices, health

and safety rules, and of course the Job they're required to do, with clear methods, timelines and

expectations.

It may include :

General training relating to the organization, including values and philosophy as well as structure

and history etc.

Mandatory training relating to health and safety and other essential or legal areas.

Job training relating to the role that the new starter will be performing.

Training evaluation i.e. entailing confirmation of understanding, and feedback about the quality

and response to the training.

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At GRASIM LTD. when an employee joins this organization firstly he\she must undergo from induction

training. It will contain the introduction or briefing about all the departments and its functions. Usually it

will be like a session which will be handled by Team heads or any other team member on behalf of him.

The induction programm may last upto one week. In a way it is like a welcome session to make a new

joiner familiar with the company atmosphere.

TECHNICAL TRAINING

It is the process of teaching employees how to more accurately and thoroughly perform the technical

components of their jobs. Training can include technology applications, products, sales and service tactics,

and more. Technical skills are job-specific as opposed to soft skills, which are transferable, Hence these are

to be exercised accordingly.

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TALENT MANAGEMENT

Philosophy of Talent Managent at GRASIM LTD. :

At GRASIM LTD. It is beleived that talent is “Omnipresent” and all people have talent. The challenge lies

in the identification and development of the explicit as well as latent talent of individuals, to optimise

individuals, to optimise individual and business performance. Talent that is relevant to a business context

needs to be identified early and developed. The endeavor is to identify and develop talent by selecting the

right individual for the right job and helping that individual optimise his or her talent and capability.

Definition of Talent Management :

Talent Management refers to the conscious, deliberate approach undertaken to attract, develop and retain

people with the aptitude and abilities to meet current and future organisational needs. It involves individual

and organisational development i response to a changing and complex operating environment.

Objectives of Talent Management :

Attracting, Developing, Nurturing and Retaining talent are imporatant objectives. The approach to talent

management will lead to :

Ensuring an uninterrupted availability of talent pool members for critical positions.

Assigning appropriate development opportunities for people to enable them to harness and

optimise their capabilities and grow in their careers.

Effective development of talent pool whenever there is a business requirement.

Strenghtening the leadership pipeline of the business and the group by developing capable

successors for critical positions.

Talent Management Framework :

It consists of six stages –

Career Stage Classification

Talent Segmentation

Potential Validation

Consensus Discussion

Individual Development Plan (IDP)

Talent Review Discussion (TRD)

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PERFORMANCE APPRAISAL

“It is a systematic evaluation of an individual with respect to performance on the job and individual’s

potential for development”. Performance Appraisals is the assessment of individual’s performance in a

systematic way. It is a developmental tool used for all round development of the employee and the

organization. The performance is measured against such factors as job knowledge, quality and quantity of

output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and

health. Assessment should be confined to past as well as potential performance also.

Objectives of Performance Appraisal

To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.

To identify the strengths and weaknesses of employees to place right men on right job.

To maintain and assess the potential present in a person for further growth and development.

To provide a feedback to employees regarding their performance and related status.

To provide a feedback to employees regarding their performance and related status.

It serves as a basis for influencing working habits of the employees.

To review and retain the promotional and other training programmes.

Tools and Techniques commonly used for Performance appraisal :

1. Ranking Method.

2. Forced Distribution method.

3. Critical Incident techniques.

4. Checklists and Weighted Checklists.

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PERFORMANCE MANAGEMENT SYSTEM

The performance apraisal process is carried out once a year at GRASIM LTD. which involves active

participation of employees and management. Employees are asked to fill the KRA’s and goals regarding

their job profile and prospects.

Step 1 : They are given a comparitive scale to measure their goals and KRA’S. The scale has 100 ratings

on it, The points on the scale represents various attributes relating to the amount of work and quality of

work done by the individual during a given period of time.

The technique involves asking the respondent to assign maximum of 100 rating to the KRA’s and Goals.

There can be maximum of 10 KRA’s and Goals. This technique is considered as advantageous here as it

allows for discrimination among attributes without requiring too much time.

Example :

KRA’s Goals Weightage

1. ..... %

2. ..... %

3. ..... %

4. ..... %

5. ..... %

Total 100 %

This step further involves verification of the ratings by the immediate Supervisors or Boss. GRASIM

LTD. has an online system called PEOPLE SOFT to manage the performane appraisal system throughout

the year.

Step 2 : This step involves periodic review of the performance which is done in 6 months to follow-up

the performance appraisal process and which involves analysing deviations and take corrective action to

effectively and efficiently manage the entire system of performance appraisal. This step is also called mid

year review.

Step 3 : The final apraisal takes place in the month of march. The technique used is a 5 point rating scale

where both managers and employees are asked to rate each goal. After the rating is duly received the

points by both manager and subordinate are averaged out to reach out to a more accurate and precise

assumptions which are to be utilised during the final appraisal.

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The rating scale moves from 1 to 5, where :

1 = Far Below Expectation.

2 = Below Expectation.

3 = Meets Expectation.

4 = Exceeds Expectation.

5 = Far Exceeds Expectation.

Step 4 : In this step normalisation of ratings is done. By normalisation it is made sure that approximately

50% of the employees get 3 Rating, where around 20% gets 4 Rating, 5-10% gets around 5 Rating,

around 5% gets 1 Rating and around 10-15% gets 2 Rating.

Step 5 : Finaly the discussion takes place between various departmental heads to reach out to an unbiased

judgement, then the increment process starts. The final decision rests with the mumbai office.

These are the various steps that are involved in the performance management system at GRASIM LTD.

(Fibre Divison), Nagda, Madhya Pradesh.

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INDUSTRIAL RELATION

Industrial Relation refers to the relation between employer and employee in the industry in others words,

It describes relation between management and employees or among employees and their organisation that

characterise or grown out of employment. In mordern sense industrial relation function is an attempt by

which management aims to come close to the employee to understand and address issues among out of

employment.

There are nearly 4000 employees including indirect and beyond usual welfare process. The organisation

periodically analyse the satisfaction level of employees through satisfaction survey and act upon the

feedback .

In order to facilitate workers issues, OS union affiliated with national level trade union organisation wiz

INTUC, BMS, HMS, AITUC, CITU our working at GRASIM LTD., Staple Fibre Division, Nagda. The

union has become matured and rational due to long association with the industry. Industrial Relation have

been very smooth since 1985 and there has been no mandays lost on account of IR Issues while all these

trade union have industrial identity, yet on all major issues they sit toghether with management. Most of

the settelment has been arrived at through by partite negotiation.

COLLECTIVE BARGAINING

While trade union is open to discuss industrial issues, complaint, Grevience of any employee collective

issues having impact on employees at large are discussed jointly with all union together. So despite OS

different union with seperate affiliation they are virtually one on collective issues. We can safely

conclude that GRASIM LTD. Is very near to “One industry – One union concept”. The last 04 major long

team settelment are an example of this productivity improvement and skill upgradation to shoulder the

new challenges arisng out of globalisation is a major task ahead.

CONTRACT LABOUR

Contract labour is deployed in loading, unloading, civil construction, escalation, security etc depending

upon the requirment and emergency of work. Contract labour requirement facilities and they are deployed

in any main process unlike many other places and industries. Contract laobur is paid all due attention in

terms of hours of work, minimum wage, PF, ESL, leave, gratuity etc company ensure that lawful wages

and benifits reaches to the contarct labour. In order to avoid any malpractice, Contarct labour is given

wage slip and the sallaries gets creditted to there bank accounts.

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BIBLIOGRAPHY

Primary Data

Interviews :

Ajay Maheshwari Sir

Isha mam

Neha Mam

Nirbhay Gupta Sir

Secondary Data

Reports :

Annual Report of Grasim Industries Limited

Web Sites :

www.adityabirla.com

www.google.com

www.grasimindustries.com

www.wordpress.com