HRM Report On Retail Industry
HRM Report On Retail Industry
HRM Report On Retail Industry
Industry – Retail
1
Table of Content
Contribution
Minutes of Meeting with HR
About Industry
Industry HR functioning
About Company
HR planning
Recruitment & Selection
Learning & Development
Compensation
Performance Management
Legal Aspect
Analysis
Recommendation
Questionnaire
Reference
Evidence
2
Group Member Contribution
3
About Retail Industry
As a result of the introduction of many new businesses, the Indian retail industry has become
one of the most dynamic and fast-paced in the world. It generates more than 10% of the
country's GDP and employs around 8% of the workforce. India is the world's fifth-largest
retail destination.
India is the world's fifth-largest shopping destination. India was ranked 16th in the FDI
Confidence Index (after US, Canada, Germany, United Kingdom, China, Japan, France,
Australia, Switzerland, and Italy).
In FY20, offline retailers, also known as brick and mortar (B&M) merchants, are predicted to
boost revenue by Rs 10,000-12,000 crore (US$ 1.39-2.77 billion). By 2021, India's direct
selling sector will be worth $2.14 billion.
1. Increasing Demand
The retail industry attained 93 percent of pre-COVID-19 sales in February 2021,
according to the Retailers Association of India (RAI); consumer durables and quick
service restaurants (QSR) sales grew by 15 percent and 18 percent, respectively.
Demand rises in lockstep with people's purchasing power.
2. Innovation in Financing
Collective efforts of financial houses and banks with retailers are enabling
consumers to go for durable products with easy credit.
3. Substantial rise in Investment
The Indian market is being penetrated by foreign retailers.
Between April 2000 and June 2021, cumulative FDI inflows were US$ 3.61
billion.
In 2020, private equity and venture capital funds invested $6.2 billion in
India's retail industry.
4. Policy Support
• Multi-brand retail receives 51% FDI via the automatic approach, while single-brand
retail receives 100% FDI via the automatic way.
• The GST (Goods and Services Tax) was adopted to create a unified tax structure.
• The government is creating retail, FMCG, and E-commerce policies within a unified policy
framework to provide players with a level playing field.
• According to the Minister of MSME, retail and wholesale trades will be classed as MSMEs.
4
Retail and wholesale commerce will now be eligible for priority sector loans under
RBI guidelines.
Types of Retailing
Organized Retailing –
The organised retail industry, which has established job conditions and working hours every
day, is regulated by the government. Employees are paid a regular monthly salary on a
monthly basis. Employees in the organised retail sector have job security.
Unorganized Retailing
The government has no jurisdiction over the unorganised retail sector, and there
are no established job terms or working hours. In the unorganised retail
industry, labour hours are not fixed.
HR Practice in Retail Industry
Recruiting:
Campus recruiting or recruitment through recruiters and consultants is utilised depending on
the number of vacancies or if it is a new store. Local newspapers publish advertisements for
shop floor sales.
Selection:
Group discussions and interviews are used to make selections. Some stores must pass an
admission exam, which is followed by a group debate and a personal interview.
Performance appraisal:
One of the most contentious aspects of human resource management is performance
appraisal. Since the system exposes an employee's harsh truth, no one in any firm is ever
satisfied with it. It is primarily conflict-based because it is subjective and differs from person
to person.
Training and development:
One of the most contentious aspects of human resource management is performance
appraisal. Since the system exposes an employee's harsh truth, no one in any firm is ever
satisfied with it. It is primarily conflict-based because it is subjective and differs from person
to person.
Compensation:
Compensation is a term used to describe payment for services provided by an employee to an
organisation. Employees at all levels are motivated by compensation, whether direct or
indirect. Rewarding, Incentivizing, and Recognizing Employees: Every store is looking for
new ways to motivate employees and reduce attrition. In the industry, the usage of rewards,
5
incentives, and employee recognition is becoming more frequent. In their stores, retailers like
PRIL have implemented the PERK Performance Enhancement Reward Kit and the star
performance of the month. Individual, team, and corporate accomplishments are recognised
and rewarded with them.
Employee Discipline:
It is a management technique that is used to rectify employee behaviour.
Big Bazaar
6
o Big Bazaar was founded in 2001.
o Big Bazaar is one of the oldest and largest hypermarket chains of India.
o Founder and CEO of Big Bazar is Kishore Biyani.
o Parent Company of Big Bazar is Future Group.
o Big Bazaar has 15000 + employees.
o Big Bazaar had about 250+ stores in over 120 cities and towns across the country.
o Big Bazaar generates $2.9B in revenue.
o Big Bazaar has historically raised $0 in funding.
o Big Bazaar's headquarters is in Mumbai Maharashtra, INDIA.
HR Planning
Feature of HR planning
Management strives to have the proper number and kind of people in the right places at the
right time to undertake tasks that benefit both the organisation and the individual in the long
term through planning. Basically, it means finding someone who is a good fit for both the
organisation and the job.
Well-Defined Objectives:
Human resource planning objectives and goals may be the same as those of strategic and
operational planning for an organisation. The company's human resource requirements are
planned in accordance with its goals. Human resource planning also has its own set of
objectives, such as increasing human resources, improving technical competence, developing
career plans for certain executives and individuals, and ensuring increased employee
commitment, to name a few.
Determining Human Resource Needs:
7
Because suitable individuals may become available in the future, manpower requirements
must be prepared well in advance. If sufficient individuals are not available in the future, the
recruiting process should be started as soon as possible. The demand for and supply of
personnel should be planned ahead of time.
Process of Recruitment
1. Identifies the different sources of manpower supply.
2. Assesses their validity.
3. Chooses the most suitable source or sources.
4. Invites applications from the perspective candidates for the vacant jobs.
Recruitment sources
• College placement- Big Bazaar recruits from colleges and trains students and freshmen in
accordance with their work culture, as well as providing internships.
• One of the sources is employee referral. Employee referrals are used by Big Bazaar to
acquire applicants since they believe it is a simple and time-saving method.
• Advertisement- Big Bazaar uses the newspaper and online platforms to inform candidates
about job openings and encourage applications.
• Employment Agency- Big Bazaar employs skill centres for lower-level candidates and
leverages portals like Naukri.com for higher-level management prospects.
Process of Selection
selection process (starting from the initial decision to fill a position and ending at a successful
employee start) has quality elements to it. Selection is the process of choosing the most
suitable candidates from those who apply for the job. It is a process of offering jobs to desired
candidates.
8
Selection
Process
Aptitude Test
GD/Extempore/
Case Analysis
Personal Interview
9
Reference &
Background Check Final Selection
10
In order to carry out the full process, the HR department will require a specific budget. This
budget varies from one company to the next. Budgets change from time to time, depending
on the needs. It is distributed by the organization's financial department. Big Bazaar was
given a budget to complete the process that was assigned to them.
Experience Matter
In order to carry out the full process, the HR department will require a specific budget. This
budget varies from one company to the next. Budgets change from time to time, depending
on the needs. It is distributed by the organization's financial department. Big Bazaar was
given a budget to complete the process that was assigned to them.
Determination of vacancy
Man power Planning –
In order to achieve a goal, manpower requirements must be recognised, located, and
harnessed. Manpower planning necessitates not only a fundamental assessment of the
required number of men, but also of their types and abilities, as well as a fair
distribution of those people.
Separation Management-
These days, employee retention is a big issue for all firms. Making sure that departing
employees are heard and understood is crucial. Professional groups benefit from the
critiques and ideas of departing employees. Each corporation has its own business
process flow for exit management. A fully customised exit management system is
included in the separation management module.
1. Allows you to customise the leaving process according to your company's rules and
procedures.
2. Complete cycle monitoring is available online.
3. The user can start the separation request process online.
4. Approvals are given depending on the policies that have been set up.
5. After a resignation or termination, the system automatically blocks responsibilities
and permissions.
6. Managerial or HR termination options are available.
7. Clearance on many levels is a possibility.
8. The entire clearance procedure may be completed online.
9. Employees can fill out an online exit form.
10. Complete information about the departing employee is captured.
11. Clearance information and other separation-related inputs are included in this rich
Full & Final form.
12. Prepare an exit settlement pay-out statement.
Rehiring of EX-Employees
It generally depend on person to person. They do hire employees who left organization.
11
Past record :- They check past record of individual. How they are performing in their
past. If employee is good performer in past they will hire them.
Skills :- It also depend if the person possess certain characteristic within then they can
rehire them.
Background & Reference Check:-
Background Check:
A background check looks into a person's criminal, business, and (in certain situations)
financial history. Typically, a company will contract with a third-party source to hire a
background check specialist. The background check company will look over your records to
see whether you are who you say you are and if you have any red flags in your personal or
professional history.
Reference Check:
Learning and development is a human resource component aimed at improving group and
individual performance via the refinement and growth of skills and knowledge. Learning and
development, also referred to as training and development, is an important part of a
company's talent management strategy since it tries to align group and individual goals and
performance with the company's overall vision and goals.
Procurement is an important part of the training and development process since training
providers must be cost-effective and appropriate for the organization's goals. Individuals are
provided tools and talents throughout good training and instructed how to apply these new
skills and abilities inside their own organisation and role.
Individuals in charge of talent development must first identify skills shortages across groups
and teams (usually through SMART targets, one-on-one interviews, and performance
reviews), and then find relevant training to fill the gaps.
12
• Training evaluations are carried out on a yearly basis. Training might be for progress in
your career or for a specific job.
• The annual 360-degree assessment process assists the organisation in identifying personnel
limitations and proposing specific training for them.
• Training is available in a variety of areas, including customer service, health and safety,
digital capacity, professional development, and leadership.
• If an employee is having personal or professional difficulties that are preventing them from
progressing, the company provides an employee assistance package.
• At shops, head offices, and zonal offices, all employees are assessed for training needs.
• Prarambh-Big Bazaar Induction course for new joiners is an example of a training and skill
development programme.
Avatar-Training for Skill Development Training is provided to assistant managers, assistant
store managers, and team leaders in order for them to fulfil their career goals.
HR Transformation Master Class Learnings on talent management in the new digital
era.
Soft Skills & People Development
• Grooming
• Foodhall Etiquettes
• Body Language
• Personal Hygiene
• Complaint Handling
• Telephone Etiquettes
• Other Soft Skill Trainings
13
Onboarding-
Onboarding is the process of integrating a new employee into a company or
organisation. However, as every good HR professional knows, there's more to it than
that. Onboarding begins throughout the recruiting and hiring process and can last up
to a year after starting a new job.
Successful onboarding is crucial because employees require critical knowledge and
context in areas such as their specific function, corporate regulations, company
culture, and business procedures and systems.
Compensation
Compensation refers to the entire amount of cash and non-monetary payments you
provide to an employee in exchange for their services to your company. It is usually
one of the most expensive costs for companies with workers. The term"
compensation" refers to more than just an employee's regular pay. It also covers a
wide range of additional pay and perks.
Research prior to decide compensation
An employee's wage can be computed in a variety of ways. Internal equality should
be considered regardless of how you determine employee compensation. When you
14
compare occupations in your company to ensure equal compensation, you're talking
about internal equity.
Investigate how much other businesses pay their workers. Examine your company's
competition in your area. How much do other people in your neighbourhood earn?
Pay attention to those with job titles and responsibilities that are similar to your
employees'.
You may conduct a survey of businesses similar to yours. Look for websites that allow
employees to disclose their earnings on their own. Based on their previous remuneration, you
determine how much an employee should be paid. You might give them a raise or keep their
pay the same.
You should carefully consider how much money you can spend on employees. When
calculating how much an employee costs, remember to factor in taxes and perks.
Before you offer a position or a salary increase, be sure the compensation plan fits
into your budget.
• The company pays employees a base salary, benefits, prerequisites, and allowances,
as well as a commission or performance incentive (fixed component) (variable
component).
• It's computed by comparing peer organisation salaries, employee functions and
duties, and previous year's contributions, and then making a recommendation to the
Board of Directors.
Why Fresher candidates are paid less than experienced candidates. Employees who
perform better and more are rewarded.
Performance Management
Product Training-
15
Product knowledge enables salespeople to communicate with clients effectively and
enthusiastically, generating trust and confidence. Product training is an important part
of any business's success. Without value-added product training, a marketing team
won't be able to reach the right market, and a sales staff won't be able to answer the
most important questions that customers have.
Sales Skills-
• Meeting regularly
1. Feedback
2. Interaction
3. Every Month Training Program . Identify the gap.
4. TNA ( training need analysis) Planned a training calendar a month in advance.
5. Motivation
6. Moral Support
The Company has made grievance processes available to all of its stakeholders through
various physical and online channels in order to inform, analyse, and remedy issues. All
queries and issues, including grievances, are handled by specific teams for formal remedy,
depending on the nature of the complaints. Complaints and questions from stakeholders are
being tracked, which is supporting the Company in improving its deployment strategy.
Handling Employee Grievances
The Company is concerned about its employees' concerns and grievances, and it works with
them to resolve issues that affect their health and well-being. At operating sites, grievance
and suggestion boxes, as well as a dedicated e-mail id for People office workers, are available
and accessible at all times.
Employee grievances are handled by the Zonal Disciplinary Committee. The Disciplinary
Process
16
The following people make up the committee:
• Zonal President and CEO
• People's Zonal Office
• Head of Zonal Operations
• Zonal Legal Adviser
• Head of a Zonal Category (Food, Fashion, or General Merchandise
POSH-
The Company has a policy in place to prevent sexual harassment at work (POSH). The policy
intends to prevent harassment of workers as well as contractors and suppliers, and it lays out
the procedures for identifying, reporting, and preventing sexual harassment, as well as the
reporting and settlement of such complaints.
Big Bazaar
As per the conversation with HR, Big-bazaar had separate department to handle employee
grievances. They had separate policies to handle all sort of grievances.
ANALYSIS
HR practices is one of the important aspects and contribute to company’s
profit.
Employees are the real asset of organization.
Efficient & effective management of HR is the crucial part so proper
decision at the right time to be taken.
HR monitor the working culture of organization so that employees can
work in friendly environment.
Hiring & Selection of right candidate is the major job role of HR. Proper
process and selecting the most appropriate candidate for the vacant place
contribute in selecting best talent in organization.
Choosing right person to train and in which area they need training and
development is another important aspect of HR. This helps to maintain
skills as well as update their skills in their respective area.
17
The HR Department of Big Bazaar is dynamic in nature and is very
flexible to change with the trends going on in the industry and the
country. They practice green HRM, provide employees with programs
like performance management, monthly evaluation etc. which helps the
organization as well as the employees to enhance their performance and
develop as a flexible individual who is updated with all the knowledge
needed to.
Big Bazaar is growing and improving its services and is being a
competitive in the industry but still has strong competition from D-Mart,
Big Basket and Grofers.
Retail industry also faced major setback from Covid as stores were
closed and people started ordering online and gave a boost to companies
like Grofers and Big Basket.
Big Bazaar also has its own app and saw growth in online orders and is
setting to cover all the 2 tier cities in India and become financially sound
as previously it was in huge losses.
In fact 2nd quarter’s results of Future Group were also not good in terms
of profits.
We also saw that because of bulk buying and aggressive pricing Big
Bazaar also started loosing trust among customers because of lack of
good experience in the stores. As they were forcing on the stock rather on
proving good experience to customers.
Recommendation
18
Links & References
https://www.bloomberg.com/research/stocks/private/snapsh
ot.asp?privcapId=112068145
Ibef.org
Best HR practices in organised retail sector (indianretailer.com)
The Role of HR in the Retail Industry | Career Star Group
Recruitment & selection practices at big bazaar by Mujahid Abbas Abbas - Issuu
Performance appraisal process in Big Bazaar. - PapersBureau.com
Performance Appraisal in Big Bazar - Free Essay Example by Essaylead
Big Bazaar salaries: How much does Big Bazaar pay in India? | Indeed.com
Annual Reports – Future Retail
19
Questionnaire to HR
How do you recruit and select the candidate?
20
Questionnaire for Employee
References
21
LinkedIn Profile: https://www.linkedin.com/in/sachin-singh-5bb9b2175
Contact No.: 8818880087
Evidence
LINK
https://drive.google.com/drive/u/0/folders/1tLhMi8DcPabCdocPFhL6n1Qy
-NnaxvmL
22
Thank You
23