A SUMMER TRAINING PROJECT

REPORT (M.B.A)
ON
A STUDY OF HR PRACTICES &THE PROCESS OF PERFORMANCE
APPRAISAL OF EMPLOYEES IN IIT KALRASHUKLA CLASSES

For the partial fulfilment of the requirement for award of Degree of

Master of Business Administration.

SUBMITTED BY:

Name : Mansi Tiwari

Roll no. :1804870055
Batch: MBA

SUBMITTED TO:

Name: DR. Sadhvi Mehrotra

Head Academic

Affiliated to AKTU, Lucknow

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 PREFACE

It is great opportunity for me to have the MASTER OF BUSINESS

ADMINISTRATION in DAYANAND ACADEMY OF MANAGEMENT STUDIES,
KANPUR. In the accomplishment of this degree I am submitting a summer training
project report on “A STUDY OF HR PRACTICES & THE PROCESS OF
PERFORMANCE APPRAISAL OF EMPLOYEES IN IIT KALRASHUKLA
CLASSES PVT. LTD.” Subject to the limitation of time efforts and resources every
possible attempt has been made to study the problem deeply. The whole project is
measured through the questionnaire, the data further analysed and interpreted and
the result was obtained.

this summer training project report has been prepared by me after the completion of
two months training work at IIT Kalrashukla classes pt. Ltd.

I further declare that this report has not been submitted earlier to any other university
or institute for the award of any degree.

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 ACKNOWLEDGEMENT

With immense please I am presenting “A study of HR practices & process of

performance appraisal of employees in IIT Kalrashukla classes pt. ltd.” project report
as part of the curriculum of ‘master of management studies’. I wish to thank all the
people who gave me unending support.

The internship opportunity I had with kalrashukla classes pvt. Ltd. Was a great
chance for learning and professional development.

I express my deepest thanks to Mrs. Shalu Gupta, branch manager for taking
part in useful decision & giving necessary advices and guidance and arranged
all facilities to make life easier. I choose this moment to acknowledge her
contribution gratefully.

I perceive as this opportunity as a big milestone in my career development. I will

strive to use gained skills and knowledge in the best possible way, and I will continue
to work on their improvement, in order to attain desired career objectives. Hope to
continue cooperation with all of you in the future,
Sincerely,

Mansi Tiwari

Kanpur

Date:

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 TABLE OF CONTENTS

CHAPTER NO. TITLES PAGE NO.

1 Acknowledgement 3
2 Declaration 4
3 Executive Summary 5
4 Company Profile 6

5 Organizational Chart 7
6 Introduction 8-11
7 About the project
 Recruitment 12-14
 Selection 15-17
 Performance Appraisal 18-24
 Training & Development 25-30

 Talent Management 31-32

 Job Analysis 33-38

 Organisation Structure 39-41

42-44
 Human Resource Information System
45-46
 Company Philosophy
47-4
 Exit Interview
8 Learnings

9 Observations & Findings

10 Recommendations

11 Nomenclatures and Abbreviations

12 Limitations & Bibliography

13 Annexure

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 Introduction of Education Industry
The Educational Services sector comprises establishments that provide instruction
and training in a wide variety of subjects. This instruction and training is provided by
specialized establishments, such as schools, colleges, universities, and training
centers. These establishments may be privately owned and operated for profit or not
for profit, or they may be publicly owned and operated. They may also offer food
and/or accommodation services to their students.

Educational services are usually delivered by teachers or instructors that explain,

tell, demonstrate, supervise, and direct learning. Instruction is imparted in diverse
settings, such as educational institutions, the workplace, or the home, and through
diverse means, such as correspondence, television, the Internet, or other electronic
and distance-learning methods. The training provided by these establishments may
include the use of simulators and simulation methods. It can be adapted to the
particular needs of the students, for example sign language can replace verbal
language for teaching students with hearing impairments. All industries in the sector
share this commonality of process, namely, labour inputs of instructors with the
requisite subject matter expertise and teaching ability.

India holds an important place in the global education industry. India has one of the
largest networks of higher education institutions in the world. However, there is still a
lot of potential for further development in the education system.

Moreover, the aim of the government to raise its current gross enrolment ratio to 30
per cent by 2020 will also boost the growth of the distance education in India.

India has the world’s largest population of about 500 million in the age bracket of 5-
24 years and this provides a great opportunity for the education sector. The
education sector in India is estimated at US$ 91.7 billion in FY18 and is expected to
reach US$ 101.1 billion in FY19.

Number of colleges and universities in India reached 39,050 and 903, respectively in
2017-18. India had 36.64 million students enrolled in higher education in 2017-18.
Gross Enrolment Ratio in higher education reached 25.8 per cent in 2017-18.

The country has become the second largest market for e-learning after the US. The
sector is expected to reach US$ 1.96 billion by 2021 with around 9.5 million users.

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 Introduction of IIT Kalrashukla classes

Kalrashukla Classes began as an institute back in 1993, with two classrooms in Vile
Parle, Mumbai. The institute was founded by Prof. M. H. Kalra (Mathematics),
and Prof. R. D. Shukla (Physics). With a focus on excellence, they with other faculty
members teaching Chemistry and Biology, coached students for engineering and
medical entrance exams

The institute produced toppers at the entrances within the first couple of years, and
Kalrashukla Classes rapidly came to be identified as the institute of excellence for
competitive examinations in the field of science. Over the decades, Kalrashukla
Classes has had state toppers and board toppers at these tough exams, backed by
a legacy of sincere hard work and disciplined effort – from teachers and students
alike.

Kalrashukla has established itself as Kanpur’s No.1 institute for JEE coaching in just
three years

Kalrashukla classes has its presence in 5 cities and having 25 centers -

Mumbai – (18 centers)

Pune

Baramati

Patna

Kanpur (4 centers)

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 Introduction of Aakash institute

It was instituted in the year 1988 to train young and budding talent,
which was aspiring to crack the toughest of Medical Entrance Exams. The landmark
of our excellence started from 1994 and that legacy continues till date.

It was started as a humble coaching institute with 12 students only, who trusted our
simple vision of enlightening the deserving minds. Gradually, with the consistent
support of well-wishers and mentors, Aakash Institute has today become a rare
phenomenon.

However, who made this grand accomplishment possible, is something very

interesting to know! This is no one but an iron-willed visionary Mr. J C Chaudhry,
who turned Aakash into an unparalleled brand in the landscape of Medical &
Engineering Coaching in India. The three separate units of Aakash are Aakash
Institute, Aakash IIT-JEE & Aakash Foundations. All the three divisions run under the
aegis of Aakash Educational Services Limited (AESL). And these three divisions
work as separate operating units in order to facilitate varied students coming from
different shades.

In the last 31 years, Aakash has produced over 3 lakhs results in Medical and
Engineering Entrance Exams. It has established a country-wide network of 186+
classroom centres across India. Moreover, it has earned the trust of millions of
parents and the blessings of the Almighty to become an unparalleled name in the
arena of quality coaching and guidance.

Numerous branches of the prestigious Aakash Coaching Centers are there in our
nation today.

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 Introduction of Fiitjee institute

FIITJEE was created in 1992 by the vision and toil of Mr. D. K. Goel, a Mechanical
Engineering Graduate from IIT Delhi. We had a very humble beginning as a forum
for IIT-JEE, with a vision to provide an ideal launch pad for serious JEE
aspirants.Along the way to realization of this vision, we went beyond merely
coaching for IIT-JEE. We actually started to make a difference in the way Students
think and approach problems. We started to develop ways to enhance Students’ IQ.
We started to leave an indelible mark on the Students who have undergone FIITJEE
training.We started changing lives. And all this was not a sheer coincidence. It was
the urge, the compelling desire, to always aspire for perfection and in the
process,continuously keep on setting newer benchmarks of excellence, which
enabled us and our Students to achieve what we have achieved.

Launch of FIITJEE World Schools at Hyderabad is a concentrated effort in that

direction, where Students will be trained for the best in the world through
methodologies and practices that are truly world Class. Students in other select cities
will also have an opportunity for preparing for admission to US Universities through
USA UnivQuest School Integrated Programs to be run in collaboration with our
Select Associate Schools.

It has a pan-Indian network of approximately 84 branches in about 50 cities.

FIITJEE has furnished hostel / lodging & boarding facilities at the following FIITJEE
centres which is available solely on the basis of merit.

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 INTRODUCTION OF HUMAN RESOURCE MANAGEMENT

Human resource management is a strategic approach to managing employment

relation which emphasizes that leveraging people capabilities is critical to gain
sustainable competitive advantage, this being achieved via a distinctive set of
integrated employment policies, programs and practices (Bratton J and Gold J,
2003). The actual capital of the organization is the human abilities to utilize the
human being as a capital. Each organization has too much cash to commence the
business but have not professional bodies to use them at the right pace and at the
right time. And HR is strategic partner of the business which runs with the business
and takes the business towards the success.

The global and competitive market environment has led to new challengers for the
individuals and organization. Without having a well trained and well prepared labor
force, businesses drop the ability to compete with national and international rivals,
resulting in decreased economic success. For the last ten years, the workplace in
the organization has a lot of issues, like increased international and national
competition, fast technologies and scientific changes, workforce demography, wider
utilization of information technologies etc. Human resource managers should
understand all kinds of these issues and should develop suitable strategies in order
to help their organization. Human resource management is vital for the organization
to achieve its goals and success. According to Tokesky and Kornides (1994), to
show the importance of HR department to the employees, managers should try to
show the relation between human resource management and organizational
success.

In turn, HRM is increasing used to recognize the importance of employees as

corporate assets. Employees must have, therefore, a wide variety of technical and
interpersonal workplace skills and competencies that allow them to work with
advanced technologies and function optimally in today’s high performing
organizations. The skills, knowledge and the experience of the employees are
economic values for the organization because the employees enable the
organization adaptable and productive. The organizations that run their HR
department successfully have higher level of productivity, higher market value,

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higher profitability and meeting the needs of their shareholders, investors,
customers, employees and at the end the needs of the society.

CEOs and managers need to analysis their human resource strategies and practices
if they hope to create and retain a viable workforce. In the manufacturing sector, Lam
and White (1998) present strong evidence that a combination of extensive training
and development programs, above-average compensation and benefits, and
effective recruitment practices positively influence corporate performance. Huselid
(1995) demonstrated convincingly too that human resource management practices
known as high-performance workplace practices (e.g. training, incentive
compensation, selectivity all of which are performance enhancing) are linked to
greater productivity and financial performance. Combs et al. (2006) found a positive
correlation between HPWP and both operational (e.g. retention and productivity) and
financial (e.g. accounting or marketing returns) performance.

Role of HR department

During the 1990, the HR functions were performed by the line managers in the large
organization. They were responsible for supporting daily people management and
act as strategic business partners range from advisors to line managers. In the
organization, the line managers are the main bodies who implement the HR
strategies and policies and put it into reality.

Now recently, there almost in all the big organization, there is a separate department
named HR department that performs HR functions.

This department performs a lot of functions like selection of new employees, their
training and learning programs, a system of rewarding them, a system for leaves,
retention policies etc

HR management practices and system have been linked to the increased

productivity, higher quality work, higher level of profitability, and organizational
competitiveness. Here the competitiveness mean in the global economy is, to take
high advantageous position in the changing market environment. For this linked to
be accomplished between the human resource management and organizational

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success, the role of HR department should be strategic instead of operational,
aligning the HR practices and functions with the strategic needs of the organization.
According to the Brewster, (1995), the mixing of HRM with business strategy is very
rare and vital even among the large organizations. In many organizations, they have
problems in transforming the HRM into strategic functions. They focus on the
administrative and clerical tasks leaving the HRM department. In the end, their
managers fail to make changes through the employees in the organization. the
activities of HR department are listed below

Employment and recruiting;

Training and development;

Compensation;

Benefits;

Employee services;

Employee and community relations;

Personnel records;

Health and safety;

Strategic planning.

HR function is a support part of the whole business management process and can
not be cut off regarded, the overall role of it is to conduct effective people
management in employment and development, and organize the relationship
between management and the workforce in order to make the best use of its
workforce to achieve organizational goals and benefit.

HR functions have a variety of policies and activities, and vary from different level of
an organization and from one organization to another.

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 LITERATURE REVIEW

HUMAN RESOURCE MANAGEMENT

HRM can be defined as “the pattern of planned HR deployments and activities
intended to enable an organization to achieve its goals. Increasingly, the field has
emphasized the importance of focusing on whether and how “systems” or “bundles”
of HR practices jointly help organizations achieve strategic goals, rather than on
single HR practices individually. An HR system can be defined as a combination of
HR practices “that are espoused to be internally consistent and reinforcing to
achieve some overarching result. Conceptually, these systems of HR practices—as
a whole—are proposed to affect performance-related outcomes. Existing evidence
provides some first meta-analytic support, as HR systems tend to be more strongly
related to performance than individual HR practices. However, how this joint effect
occurs seems less clear. Conceptually, all practices in a system are proposed to
promote an overarching goal; however, it is not always clear what the overarching
goal is, how HR systems are conceptualized, or how practices contribute to this goal.

Multiple conceptualizations of HR systems exist, including high performance

commitment, and involvement. Some scholars use general labels such as HR
system or HR bundle without indicating a dominant strategic focus, while others
study targeted HR systems focused, for example, on customer service or teamwork.
Different levels can be distinguished within HR systems: HR policies represent an
organization’s stated intentions about HR practices that should be implemented,
whereas HR practices reflect the actual HR activitie. Techniques are methods used
within practices, such as assessment centers in selection. One can also structure
HR systems by focusing on broader types or subbundles of practices, such as those
based on the ability-motivation-opportunity (AMO) model: ability-enhancing practices
(e.g., selection, training), motivation-enhancing practices (e.g., performance
management, rewards), and opportunity-enhancing practices (e.g., participation, job
design; The logic for this level of abstraction is that countless specific HR practices
exist that at a broader policy level, form conceptually similar groupings of practices.

Already over a decade ago authors lamented that a precise and consistent definition
of HR systems was lacking and that the variability across HR systems in terms of the

12
included practices was considerable. Here we review whether this has changed over
time. We examine how systems are labeled and which practices and subbundles
they contain to determine how HR systems that are labeled differently can be
distinguished from each other and to what extent HR systems that are labeled
similarly indeed are similar in terms of the practices they include. Ambiguity
regarding the conceptual boundaries of a construct hinders knowledge accumulation,
as it may be unclear what we are speaking about when we examine or compare
(specific) HR systems.

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HR PRACTICES
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 help 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-
behavioural aspects
 Prepare HR strategic Objectives and bring in clarity as to how the HR strategy
supports the organizational strategy

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  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 cannot 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.

As the Transparent HR practices can reduce attrition, Because-

Transparent HR practices ensure continuous business growth in every organization.

 It gives the suitable working environment to the employees.

 The success of company motivates the employees of organization to continue
relationship with it. As all the employees Perks chart has been mentioned
according to their designation in the HR practices, it helps the employees to
know what their perks charts are. So, it creates a transparency.

OBJECTIVE OF THE PROJECT

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As we know the whole function of HR department depends upon the HR Practices of
the organization. The HR management is done according to the HR Practices of the
company. Which things to be done and which things should not be done depend
upon this only. It also helps the organization to achieve the target of the organization.

The HR policies of the organization have been mentioned in the HR Practices. All
the rules &regulations for the employees have been also mentioned in this. All the
welfare of the employees’ processes is also mentioned in this.

So the study of the HR Practices means basically the brief study of all HR functions
in the organization. I believe the HR Practices is a vital part of an organization, which
helps the organization to achieve the goal of the organization.

All companies are having their HR Practices but the company who is having the
best, is the most successful company among its competitors. So, the company can
get success within its competitors by applying best, effective HR Practices.

The main objective of the project is

 To understand the HR practices followed & Process of Performance

Appraisal.
 To know what are the uses of HR practices for any organization.
 How these HR Practices help any organization to know its stand in the
market and to be competitive by implementing good HR Practices for their
employees.
 To understand how the organization would achieve its goals by implementing
good HR Practices.
 To understand the work culture of the organization.

HR function is very important in every organization. It helps the organization to

manage not only the people of the organization but to manage all the working
processes in it also. HR is management function that helps managers to recruit,
select, train and develop members for an organization. Obviously, HR is concerned
with the people’s dimensions in organizations. HR refers to set of programs,
functions, and activities designed and carried out.

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HR PRACTICES OF KALRASHUKLA CLASSES PVT.

Effective and efficient HR practices are very much important for every organization.
So, KSCPL has also its HR practices, which helps it a lot to achieve the targets.

Human resource management initiatives in any organization endeavour to change,

redefine, revisit, renew, reinvent, revitalize & restructure the organization
architecture. This is effectively done with the help of alignment & integration of HR
policies & strategies with business goal & objectives.

DEFINITION OF HRM: -

HRM is concerned with the people dimensions in management. Since every

organization is made up of people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring that they continue to
maintain their commitment to the organization are essential for achieving
organizational objectives.

HRM is planning, organizing, directing and controlling of the procurement,

development. Compensation, integration, maintenance and separation of human
resources to the end so that individual, organizational and social objectives are
accomplished.

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 RECRUITMENT

Recruitment is a positive process of searching for prospective employees and

stimulating them to apply for the jobs in the organisation. When more persons apply
for jobs then there will be a scope for recruiting better persons.

It 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“. He further elaborates it, terming it both negative and
positive.

He says, “It is often termed positive in that it stimulates people to apply for jobs, to
increase the hiring ratio, i.e. the number of applicants for a job. Selection, on the
other hand, tends to be negative because it rejects a good number of those who
apply, leaving only the best to be hired.”

OBJECTIVES OF RECRUITMENT

 To attract people with multi-dimensional skills and experiences that suit the
present and future organizational strategies,
 To infuse fresh blood at all levels of the organization,
 To develop an organisational culture that attracts competent people to the
company,
 To search for talent globally and not just within the company,
 To design entry pay that competes on quality but not on quantum,
 To anticipate and find people for positions that do not exists yet.

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PROCESS

 Finding out the requirement (hiring vs. exit), upcoming vacancies, kind of
employees needed.
 Developing suitable techniques to attract suitable candidates.
 Stimulating as many candidates as possible

FACTORS AFFECTING RECRUITMENT

INTERNAL FACTORS EXTERNAL FACTORS

Employer’s brand Socio-economic factors

Company’s pay package Supply & Demand factors

Quality of work life Employment Rate

Organisation culture Labour market conditions

Career planning & growth Political, Legal, Government

Company’s size factors

Company’s products, Services

Role of trade unions

Cost of recruitment

Company’s name & fame

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SOURCES OF RECRUITMENT

INTERNAL SOURCES EXTERNAL SOURCCES

Present employees Campus Recruitment

Retired employees Private employment consultant

Dependent of present Data banks

Employee Referrals Casual Applicants

Trade Unions

Walk-ins

Head Hunting

Mergers & Acquisitions

E-Recruitment

It helps in translating Business Strategy into people requirements. A combination of

internal recruitment, campus recruitment, and executive search is leveraged to meet
up to the changing needs of the organization

In today’s rapidly changing business environment, organizations have to respond

quickly to requirements for people. Hence, it is important to have a well-defined
recruitment policy in place, which can be executed effectively to get the best fits for
the vacant positions. Selecting the wrong candidate or rejecting the right candidate
could turn out to be costly mistakes for the organization.

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 SELECTION

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.

Effectively, selection is 'buying' an employee (the price being the wage or salary
multiplied by probable years of service) hence bad buys can be very expensive. For
that reason, some firms (and some firms for particular jobs) use external expert
consultants for recruitment and selection.

Equally some small organizations exist to 'head hunt', i.e. to attract staff with high
reputations from existing employers to the recruiting employer. However, the 'cost' of
poor selection is such that, even for the mundane day-to-day jobs, those who recruit
and select should be well trained to judge the suitability of applicants.

Outsourcing is also done through consultancies by mentioning the requirement,

number and time.

Where the organization does its own printed advertising, it is useful if it has some
identifying logos its trade mark for rapid attraction and it must take care not to offend
the sex, race, etc. Antidiscrimination legislation either directly or indirectly. The form
on which the applicant is to apply (personal appearance, letter of application,
completion of a form) will vary according to the posts vacant and numbers to be
recruited.

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Interviewing can be carried out by individuals (e.g. supervisor or departmental
manager), by panels of interviewers or in the form of sequential interviews by
different experts and can vary from a five minute 'chat' to a process of several days.
Ultimately personal skills in judgment are probably the most important.

Training in interviewing and in appraising candidates is clearly essential to good

recruitment. Largely the former consists of teaching interviewers how to draw out the
interviewee and the latter how to rate the candidates. For consistency (and as an aid
to checking that) rating often consists of scoring candidates for experience,
knowledge, physical/mental capabilities, intellectual levels, motivation, prospective
potential, leadership abilities etc. (according to the needs of the post). Application of
the normal curve of distribution to scoring eliminates freak judgments.

The recruitment process

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The recruitment & selection process of KSCPL

The recruitment process of KS pt. Ltd starts from the requirement of different
departments as per to the org chart. Then they tell to the HR Department. HR
Department takes the candidates from the Applications received from the candidates
then does the short-listing, then does the scheduling for the interview. After this the
selection and negotiation process occur. 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.

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 PERFORMANCE MANAGEMENT SYSTEM

It is 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.

Employees 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 measurement 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,

24
  Beginning with the recruiting process,
 Employee development,
 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:

Needs Analysis

Identifying Competencies

Development of effective Performance Management System.

PURPOSE

For Administration-

 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

25
  Decide salary & related issues.

For Development-

 Provide performance feedback to all concerned

 Identify individual skills, core competencies, strength & weaknesses.

 Assist employees in setting goals.

 Identify training needs.

 Improve communication.

Method employed –

 Rating & contribution

 Management by objectives (MBO) –

Advanced by peter F. Drucker, way back in 1954. During last decade about 50
organisations have adopted MBO in work settings.

MBO is a process whereby superior & subordinate manager 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 anticipatively 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.

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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.

Establishing performance
standards

Communicating standards and

expectations

Measuring the actual

performance

Comparing with standards

Discussing results
(providing feedback)

Decision making -taking

corrective actions 27
Problems –
 Rating biases-
 Halo effect
 Error of central tendency.
 Personal prejudice.
 Recency effect.

Mainly the performance management of KSCPL is done by the following basic

processes-

1. Annual goal setting

2. peak season review
3. Annual performance review

1. Annual goal setting -

How do we
close the gaps? How do we retain
and nourish?

How we know How do we know

what we have? what we need?

28
  In the month of April every year, after the annual planning and
budgeting rounds, all teams identify their KRA’s and target goals for the
forthcoming financial year.
 Then center manager notify their employees about their goals, KRA’s,
and due date for completion of specific target goals of organization
 Then manager make a report of employees work area, duties assign to
them.
 Then manager submit the copy of report to HR department for
performance analysis

2. Peak season review-

Peak season is that time of the year when a company is the busiest. This
season differs a little bit from company to company. No matter how long
your peak season is, you want to able to hit the ground running so you
don’t lose a single day of work.

 The peak season of KSCPL is started from May and end on July
every year
 The working behaviour of employees in peak season is helping to
analysis the performance of employees
 The peak season review is also an opportunity for the manager and
his team members to identify and discuss about any performance
issues and initiate corrective action for the same.
 In KSCPL working performance of employee during peak season
make a large effect on employee’s performance appraisal.

29
3. Annual Performance review –

Annual performance review is the final review before performance

appraisals. This review is given by center manager to HR department
manager analyse the working behaviour of employees during the year and
give his/her feedback to HR department.

 The annual performance reviews against goals and target set and
achieved held during the months of August in every year.
 The manager check that employee completes his/her against duties
and target goals set which is mention on report which is provided by
center manager to HR department for performance analysis.
 The manager then discuss the performance of the employee with
him/her, give him/her feedback on his performance and capture his
own comments and performance ratings against duties and target
goals.
 The manager also discusses the employee’s performance as well
as rating with the manager’s manager (reviewer) and sends the
document to the HR department for further processing.

30
 TRAINING AND DEVELOPMENT

Training and Development is one of the main functions of the human resource
management department. Training refers to a systematic setup where employees
are instructed and taught matters of technical knowledge related to their jobs. It
focuses on teaching employees how to use particular machines or how to do specific
tasks to increase efficiency.

Whereas, Development refers to the overall holistic and educational growth and
maturity of people in managerial positions. The process of development is in relation
to insights, attitudes, adaptability, leadership and human relations.

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

requirement. The internal training department aims at improving the skill set relevant
to the work profile of employees.

 This includes improving communication

 Different skills
 E-mail programming
 Operation systems.

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.

31
Training design –

The trainer – before starting a training program, a trainer analyses his technical,
interpersonal, judgmental skills in order to deliver quality content to trainers.

The trainees – A good training design requires close scrutiny of the trainees and
their profiles. Age, experience, needs and expectations of the trainees are some of
the important factors that affect training design.

Training climate – A good training climate comprises of ambience, tone, feelings,

positive perception for training program etc.

Trainees learning style – the learning style, age, experience, educational

background of trainees must be kept in mind in order to get the right pitch to the
design of the program.

Training strategies – once the training objective has been identified, the trainer
translates it into specific training areas and modules. The trainer prepares the
priority list of about what must be included, what could be included.

Training topics – after formulating a strategy, trainer decides upon the content to
be delivered. Trainers break the content into headings, topics and ad modules.
These topics and modules are then classified into information, knowledge, skills,
and attitudes.

Sequence the contents – contents are then sequenced in a following manner:

 From simple to complex

 Topics are arranged in terms of their relative importance
 From known to unknown
 From specific to general
 Dependent relationship

Training tactics – once the objectives and the strategy of the training program
becomes clear, trainer comes in the position to select most appropriate tactics or
methods or techniques. The method selection depends on the following factors:

 Trainees’ background
 Time allocated

32
  Style preference of trainer
 Level of competence of trainer
 Availability of facilities and resources, etc

Organizational resources
practices, priorities, etc

Trainer Training Trainee

climate

Trainer’s Trainee’s
skills learning style

Training Training Training Support Program

M
objectives strategies tactics facilities design
O
N
I
Terminal Training On /off the T
objectives topics job O
R
&
C
Enabling Break up program contents into O
objectives subtopics or modules N
T
R
O
Lesson Categorize contents into information, L
objectives knowledge, skills & attitudes

Sequence the
contents

Determine learning
outcomes for each topic
33
“Training & Development is any attempt to improve current or future employee
performance by increasing an employee’s ability to perform through learning, usually
by changing the employee’s attitude or increasing his or her skills and knowledge.”

MEANING OF TRAINING & DEVELOPMENT ACCORDING TO KSCPL: -

The need for Training and Development is determined by the employee’s

performance deficiency, computed as follows.

Training & Development Need = Standard Performance – Actual Performance

Training:

Training refers to the process of imparting specific skills. An employee undergoing

training is presumed to have had some formal education. No training program is
complete without an element of education. Hence, we can say that Training is
offered to operatives.

Development:

Development means those learning opportunities designed to help employees to

grow. Development is not primarily skills oriented. Instead it provides the general
knowledge and attitudes, which will be helpful to employers in higher positions.
Efforts towards development often depend on personal drive and ambition.
Development activities such as those supplied by management development
programs are generally voluntary in nature. Development provides knowledge about
business environment, management principles and techniques, human relations,
specific industry analysis and the like is useful for better management of a company.

The Training Inputs are

 Skills
 Education
 Development
 Ethics
 Problem Solving Skills
 Decision Making
 Attitudinal Changes

34
Importance of Training & Development

 Helps remove performance deficiencies in employees

 Greater stability, flexibility and capacity for growth in an organization
 Accidents, scraps and damages to machinery can be avoided
 Serves as effective source of recruitment
 It is an investment in HR with a promise of better returns in future
 Reduces dissatisfaction, absenteeism, complaints and turnover of employees

Needs of Training

 Individual level
 Diagnosis of present problems and future challenges
 Improve individual performance or fix up performance deficiency
 Improve skills or knowledge or any other problem
 To anticipate future skill-needs and prepare employee to handle more
challenging tasks
 To prepare for possible job transfers

Training given on

 Safety aspects
 Behavioural aspects
 Technical aspects
 Communication skills

35
Identification of Training Needs (Methods)

Individual Training Needs Identification

1. Performance Appraisals
2. Interviews
3. Questionnaires
4. Attitude Surveys
5. Training Progress Feedback
6. Work Sampling
7. Rating Scales

Group Level Training Needs Identification

1. Organizational Goals and Objectives

2. Personal /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.

36
 Talent Management

Identify

Optimize Assess

Nurture Target

On-going process for Learning and Organizational Effectiveness

activities.

It is a holistic and systematic process, across the group. It is build 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

 Recruitment
 Performance
 Compensation
 Succession planning
 Learning and other capabilities around self-services
 Analytics
 Reporting

37
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 onboarding,
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).

The term talent management means different things to different people.

 To some it is about the management of high-worth individuals or “the

talented”.
 To others it is about how talent is managed generally - i.e. on the assumption
that all people have talent which should be identified and liberated.

Talent management decisions are often driven by a set of organizational core

competencies as well as position-specific competencies. The competency set may
include knowledge, skills, experience, and personal traits (demonstrated through
defined behaviours)

38
 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.

Jobs analysed job

descriptions
written

Factors identified:
Skill
Effort
responsibility

Jobs evaluated job

structure
developed

Pay rates
assigned

39
STEPS

(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

 Shift Planning
 Personnel Cost Planning
 Career and Succession Planning

Note:

Job descriptions should be as general as possible and as detailed as necessary.

40
JOBS

Jobs are General

classifications of Examples:
tasks performed by
 Head of Department
employees
 Buyer
 Secretary

Buyer
Secretary

Head of Department

41
Positions

Positions
 Positions are specific to your
Positions are the enterprise
concrete representation  More than one position can be
of jobs. They are held by based on the same job
individuals at your  Each position typically
enterprise. represents one employee, but
may be partially filled by more
than one

Job-head
of dep.

position:
position:
HOD: purchasing
HOD: HR
position:
HOD:sales

42
 Once you have created a job, define the number of positions required the
enterprise.

 Jobs are not staffed by employees. That is the role of positions. If more than
one person must perform jobs, more than one position must be created to
meet this requirement.

 A position inherits the job’s tasks, and can also be assigned its own additional
tasks.

 Positions can be 100% staffed, partially staffed, or vacant.

 When we define a position as vacant, the system prompts us to define the

period for which the position will be vacant There will be a central authority
that will be designated to declare vacancies and make them available for
Recruitment (both internal and external). Positions can fall vacant due to
reassignment or Separation as well. Such positions become unoccupied
and not vacant. Vacancy is thus a declared feature for a position.

 A chief position is a position designated as the leader of a particular

organizational unit.

 By matching the requirements of a position and the qualifications of the

employees, we will be able to do career planning for employees and
succession planning for positions.

 A profile matching reports can also be run to review the results of how an
existing employee or an applicant fares against the requirements of a position.

43
 Organizational Structure

Using the basic object types – constructs of relationships is built to mirror the
business edifices and processes. By assigning object characteristics, validations,
requirements etc, we can capture complex organizational realities with relative ease.

Process Flow:

 Before creating all of the other necessary objects and relationships, the user
must first create a root organizational unit. Once one organizational unit has
been created, it is recommended to create the appropriate organizational
units below it.
 Jobs may be created after an organizational unit exists in the model.
 You can assign cost centers to organizational units and positions.

44
Inputs:
Organization chart

 Root org unit

 Additional Org units
 Jobs if Required
 Positions
 Details to where the positions need to be mapped.
 Position Details like Position Type, Position Sub Type, Department, and Sub
department.

Every organization has its organizational structure. According to this every employee
has some specific work. The work also depends upon their levels. As per their levels
in different departments they will have to do their work.

In RMC business, there are different departments so as to organize the work

efficiently and effectively. These are:

 HR
 Marketing
 Technical
 Commercial and Accounts
 IT
 Key Accounts
 CRM
 Quality

As for different departments different works has been specified for the different levels
of people. It helps them to perform their work, which has been specified to him. For
similar jobs also, the work of the employees has been structured properly, to avoid
the repetition of the work with the other employees. It helps in decrease the
overlapping of the work.

45
To manage the different levels of work the employees have been separated in to
different designations and different depts. According to their area of specialization.
The designations which have been given to the employees are based on the skills
they have, grades, knowledge, varying experiences. These designations have been
specified as per the standard HR practices of the organizations, so as to make the
organization different from organizations.

In this way the organization stands in a better position than its competitors in the
competitive business.

The different designations given to the employees in KSCPL as per departments are
given in the following table.

Designation (s)

Finance Account Academic HR DTP IT

Departmen Departmen Departmen Departmen Departmen Departmen
t t t t t t

CFO (chief Head HR DTP IT assistant

finance Accountant Academic Manager operator
Head
officer)
Junior Operation
Accountant Incharge
H.O. D’s
Faculties
Branch
Manager
Admin
Counsellor
Marketing
manager
Marketing
executive
Helping

46
 Staff
Human Resource Information System

A human resource information system (HRIS), sometimes referred to as human

resources management system (HRMS), is software that provides a centralized
repository of employee master data that the human resource management
(HRM) group needs for completing core human resource (HR) processes.

An HRIS stores, processes and manages employee data, such as names,

addresses, national IDs or Social Security numbers, visa or work permit information,
and information about dependents. It typically also provides functionality such as
recruiting, applicant tracking, time and attendance management, performance
appraisals and benefits administration. It may also feature employee self-
service functions, and perhaps even accounting functions.

In some ways, an HRIS can be considered a smart database of employee

information: The interaction of the data, the processes that can be performed and the
reporting capabilities make the data stored in the system more accessible and
usable.

HRIS benefits

An HRIS enables the HR department to spend less time on clerical tasks, helps
ensure the accuracy of employee data and can enable employees to take a greater
role in the management of their information.

Having a centralized repository for employee data removes the need to store paper
files, which can be easily damaged, and the need to search through large paper-
based employee files to find information. Depending on the type of HRIS software, it
should generate various reports, provide ad hoc reporting capabilities and may
offer analytics on important metrics such as headcount and turnover. Modern HRIS
software also offers visualization capabilities for employee data, such as
automatically rendered organizational charts or nine-box grids.

When an HRIS has employee or manager self-service, the process for making
employee master data or organizational changes becomes more efficient and uses
less time than with paper-based requests. Approval workflows enable changes to be
approved or rejected, with the necessary individuals automatically notified. An HRIS

47
might also offer mobile capabilities that extend self-service and provide additional
flexibility for remote workers.

HRIS security and privacy

An HRIS also helps secure employee data and keep information private. When using
paper forms or spreadsheets, information can easily be accessed by people who
may not have the authority to access it. An HRIS can secure information so that it
can only be accessed by the individuals that need to have access to it.

Data security and privacy are important factors when handling sensitive personal
information, especially in countries like Germany or France, where works councils
have a strong role in protecting employee data. With the exception of lock and key,
protecting paper records can be extremely difficult.

Types of HRIS software

A variety of HRIS systems are available and aimed at different types of customers,
ranging from small and medium-sized businesses (SMBs) all the way up to large
enterprises. Usually, the difference is in the range and depth of features for each
process area.

While most HRIS systems cover a large portion of the processes described above,
many HRIS systems aimed at small to medium-sized enterprises (SMEs) have less
depth of functionality in each feature than those aimed at large enterprises.

In this way, the HRIS market is similar to the automobile market. All automobiles will
get a driver from A to B, but major differences exist in the quality and amenities
offered.

HRIS functions

An HRIS usually features modules to handle the following tasks:

 Master data management

 Organizational management, such as positions and departments

 Employee and manager self-services

 Absence and leave management

48
  Benefits administration

 Workflows

 Performance appraisals

 Recruiting and applicant tracking

 Compensation management

 Training tracking (as opposed to a learning management system [LMS]) and

organizational development

 Reporting and basic analytics

An HRIS provides a comprehensive set of HRM functionalities to serve most human

resource needs. Without this, unsecured or paper-based documents or spreadsheets
are required to store data. Manual data entry can cause errors, and manual cross-
checking of documents and spreadsheets can be time-consuming and sometimes
confusing, especially with a lack of standardization in how data is captured and
stored.

Even when a specific system is purchased to cover a process -- such as benefits

administration -- it may mean manually entering employee data changes to keep the
system up to date. If multiple systems are used, data re-entry may be required for
each system, or users may need to export data from one system, change it and then
import it into another system.

In some instances, payroll can be part of an HRIS. However, many vendors either
don't have payroll as part of their HRIS offering, or -- as
with Oracle, Workday and SuccessFactors -- they sell payroll as a separate system
that integrates with their HRIS.

49
 Compensation Philosophy of a company

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 of 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, PF (provident fund), 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

 Compensation increase

 Pay for the job

 Internal equity based on contribution to the organization

 External benchmarking

 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

 Compensation structure
 Tax efficient but compliant
 Common perk structure but varying amount

50
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, pay-out 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 of company: This is the 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.

51
 Exit Interviews

An exit interview is simply a conversation between a departing employee (who is

leaving the company either voluntarily or involuntarily) and a representative from the
organization. The interview can follow a structured format or be conducted on an
informed basis; written questionnaires can even be used in place of a face-to-face
meeting. Whichever format is used, exit interviews are generally documented.

Traditionally, exit interviews are conducted with employees leaving an organization.

The purpose of the interview is to provide feedback on why employees are leaving,
what they liked or didn’t like about their employment and what areas of the
organization they feel need improvement. Exit interviews are one of the most widely
used methods of gathering employee feedback, along with employee satisfaction
surveys.

Benefits of Exit Interview

Exit interviews can be a win-win situation for both the organization and the leaver.
The organization gets to retain a portion of the leaver’s knowledge and make it
available to others, while the leaver gets to articulate their unique contributions to the
organization and to ‘leave their mark’.

Exit interviews offer a fleeting opportunity to find out information that otherwise might
be more difficult or impossible to obtain. The exit interview is an important learning
tool for employers. When properly conducted, the interview provides the employer
with the opportunity to:

 Discuss and clarify the reasons for the termination

 Clarify pay and benefits issues (e.g., receipt of the last paycheck, the amount
of unused vacation, conversion or continuation of benefits, terms of a
severance package, unemployment insurance, etc.)
 Explain company policies relating to departing employees (e.g., trade secret
confidentiality, restrictive covenants or non-compete agreements, the

52
 possibility of future re-employment, freelance or contract work, the provision
of references to prospective employers, etc.)
 Ensure the return of keys, security cards, and company property
 Obtain information about improper or questionable management practices
connected with the employee’s termination
 Obtain information about a supervisor’s management skills
 Obtain information about how effectively a department operates
 Obtain feedback about employee’s opinions and attitudes about the company
 Resolve or defuse any remaining disputes with the exiting employee
 Protect itself against subsequent charges that the employee was forced to
resign (i.e., constructive discharge)

KSCPL is doing this interview. Because it knows “learn of potential changes in

policies and practices that may make the company more competitive (e.g.,
compensation and benefits packages, flexible work arrangements).

53
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