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A PROJECT REPORTON STUDY OF
HUMAN RESOURCE PRACTICES
ATSHAH ALLOYS LTD.
SUBMITTED TO: Prof. Praneti Shah Prof. Vaibhavi Bhatt
SUBMITTED BY: Vinit Modi (090) Chirag Shrivastav(09099) Hardik Surati(09105) Jimmy Vohera(09)
(Beta division)
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PREFACE
No matter how much automation is introduced in our lives but it will always be the people who
will be involved in its success. Man will always be the soul of any working environment
possible. Thus managing the man has and will always hold importance for the success of the
organization.
This project report on HRM practices shares an overview of the general HRM practices being
carried on in a steel giant like SHAH ALLOYS LTD. All the activities that the HRM department
undertakes right from determining the requirement of human labor to the career planning of the
employees have been covered in it. It is also interesting to see how the entire company indirectly
acts as an HR personnel in the HRM practices. We have given our best efforts to explore all the
current and future HR trends in whatsoever time we got to share with industry. We also have
tried to suggest some innovations in the HR process that could help in bringing out better
productivity. As the budding managers, apart from the classroom teaching, it has been our
earnest effort to gain from this practical exposure to the real organization.
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ACKNOWLEDGEMENT
Firstly we would like to thanks Ms. Preneti Shah and Ms. Vaibhavi Bhatt, our Principle of
Management subject faculties, who gave us wonderful opportunity to study various facets of
HRM practices in a corporate world and gave us continuous support to complete it with honesty.
The journey of the project not only made us learn the latest HR trends but it also has sharpened
our skills of dealing with corporate people.
We further would like to show our deepest gratitude to Mr. Mayur Gandhi, who readily allowed
us to carry on a project study on HRM practices at giant company like SHAH ALLOYS and
provide an excellent mentorship for the same.
We acknowledge our gratitude to all who directly or indirectly have helped and encouraged us in
this endeavor.
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TABLE OF CONTENTS
1. PROFILE OF TH COMPANY---------------------------------------------------------------------- 5
2. ORGANIZATIONAL STRUCTURE AT SHAH ALLOYS LTD.---------------------------- 8
3. DEPARTMENTS AT SHAH ALLOYS LTD.----------------------------------------------------- 9
4. MEANING OF HUMAN RESOURCE MANAGEMENT
5. APPLICATION OF THE TOPIC
a) MANPOWER REQUISITION AND SELECTION------------------------------------------- 10
DIAGRAM---------------------------------------------------------------------------------------- 10
THE ENTIRE PROCESS OF REQUISITION IN A NUTSHELL------------------------- 11
b) TRAINING------------------------------------------------------------------------------------------- 13
TRAINING FOR NEW RECRUITS ------------------------------------------------------------ 13
CORPORATE RECRUITS
WORKS RECRUITS
TRAINING FOR EXISTING EMOLYEE ----------------------------------------------------- 16
c) BENEFITS AND SERVICES AT SHAH ALLOYS LTD.-------------------------------- 17
INSURANCE
EMPLOYEE SAFETY AND HEALTH
d) PERFORMANCE APPRAISAL---------------------------------------------------------------- 18
e) UNIQUE PRACTICES AT SHAH ALLOY------------------------------------------------- 19
YOUR DEVELOPMENT IS MY CONCERN-------------------------------------------------- 20
f) CRITICAL INSIGHT AND RECOMMENDATIONS-------------------------------------- 21
TRAINING ------------------------------------------------------------------------------------------- 21
PERFORMANCE APPRAISAL------------------------------------------------------------------- 22
ENTERTAINMENT PROGRAMS--------------------------------------------------------------- 23
THE ROLE OF HR IN QUALITY MANAGEMENT------------------------------------------ 23
LEADERSHIP---------------------------------------------------------------------------------------- 24
6. CONCLUSION--------------------------------------------------------------------------------------------- 25
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PROFILE OF THE COMPANY
Rajendra VijayKumar Shah - The Chairman and Managing Director from a modest
beginning with acquisition of rolling mill in 1976, graduating to steel production in 1990
with installed capacity of 15000 T/annum steel at Shah Alloys Limited has come to acquire
a pride place in the country with production capacity of over 2, 00,000 T/annum through
technological advancement and cost competitiveness. Today Shah Alloys Limited is the
2nd largest stainless steel producer in the country aiming for the top spot.
Shah Alloys – A brief history
Incorporated in the early 90' the company was originally started to manufacture alloy steel
castings. Carbon and manganese steel castings, ingots and billets. Its initial capacity was
15,000 tons per annum for ingots and slabs at a capital cost of Rs. 26.39 million. Having
established its operations and achieving maximum capacity utilization, the company went
in for expansion and increased its capacity to 45,000 tons per annum at a capital cost of Rs
71.15 million.
In July 1994, looking at the overall favorable market conditions, additional equipment at
total project cost of Rs. 42.5 million to manufacture 15.000 tons per annum of Stainless
steel ingots within the overall capacity of 45.000 tons per annum was installed. Says Mr.
Rajendra Shah. Managing Director of Shah Alloys. "We realized that in the coming years
there is bound to be overcapacity in the mild steel sector and the stainless steel segment
would be more profitable than mild steel. That is when we decided to have a greater focus
on this sector."
Looking at the overwhelming response for stainless steel ingots and flats from the market,
the company expanded its installed capacity by 20.000 tons per annum with a capital cost
of Rs. 65.2 million. The project was completed in July 1995, but due to power problems,
the production commenced only in January 1996. According to Shah, as that time, it was
planned to install a capacity of 30,000 tons per annum for manganese steel products and
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35,000 tons per annum for stainless steel .But today the company is Utilizing capacity
mainly for stainless steel products.
A look at the financial performance of the company given below in the table and we can
see that Shah's move paid off well for as the world steel industry is reeling under
overcapacity and high costs, Shah Alloys financial performance has been improving
steadily over the last few years. Although margins in the stainless steel industry are not
those high. Shah Alloys has shown a consistent growth pattern.
CUSTOMER SERVICES:-
Shah Alloys accords priority to customer’s feedback. Manufacturing practices are constantly
updated and modified to subsequent requirement of customers in terms of quality, timely
delivery and after sales services.
QUALITY ASSURANCE:-
Shah Alloys accepted the fact that the reputation of the company lies on the quality of its
products. With stringent quality control measures aided by modern process control,
inspection and testing facilities. Shah Alloys ensures supply of quality products confirming
to International Standards. The quality assurance efforts are complemented by the testing
facilities of laboratory equipped with sophisticated equipment like. :
Universal Testing Machine
Hardness Tester
Impact Tester
Ultrasonic Flaw detector
Ultrasonic thickness gauge
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Full Fledged Chemical Laboratory
Temperature measuring equipments optical and infrared.
PRODUCT RANGE:-
-Grades of stainless steel
Utensil Grades
Austenitic Stainless Steel
Martens tic Stainless Steel
- Stainless Steel plate and H.R. coil
-Stainless Steel Bars
Stainless Steel Black Bars
Stainless Steel Wire Rod in Coil
Stainless Steel Bright Bars
Stainless Steel Wires
Stainless Steel Hex & Square
Stainless Steel Flat
Stainless Steel RCS
Stainless Steel Angles
-Stainless steel product range for Export.
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ORGANIZATIONAL STRUCTURE AT SHAH ALLOYS LTD.
Chairman and Managing Director
Vice President (Production)
Vice President (Administration)
General Manager (Purchase, Sales, Export)
Assistant General Manager
Senior Sales Executives
Supervisors
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THE DEPARTMENTS AT SHAH ALLOYS
Corporate Office:
GNFC Infotower, 9th Floor
Sarkhej-Gandhinagar Highway, Bodakdev
Ahmedabad 380 054
Gujarat, INDIA
MARKETING DEPARTMENT
PURCHASE DEPARTMENT
EXPORTS
ACCOUNTS
FINANCE
HUMAN RESOURCE MANAGEMENT
Total employees: - 130
WORKS:
Block No. 2221-2222
Shah Industrial Estate
Sola-Kalol Road, Santej
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PLATE MILL
ROLL MILL
FLAT MILL
QUALITY CONTROL
STAKE MILL
CAPRI POWER PLANT
SLAB CASTER
CONE CASTER
CRM
HRM
Total employees: - 800
MANPOWER REQUISTION AND SELECTION
DIAGRAM
Specifying the requisites as per education, experience, age, Etc.
All the major local and national dailies
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Vacancy created due to Termination, expansion, promotion, increased work load
Requisition made by concerned department head to HRM
HRM department accordingly prepares the advertisement to be given for the same in various Medias
Applications received through post.
On the basis of factors like experience And basic educational requirement, Certain are rejected.
A fixed date and time is given and are reminded by phone calls.
DIAGRAM (contd.)
To get a feel of the employees SWOT
This the final stage when He either rejects or selects
As per his ultimate discretionary powers
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Primary Scanning of applications on the basis of requirement and other factors
All the scanned and selected applications are called for the interview.
1st Interview taken by respective Department heads concerned.
2nd interview taken by HR manager
3rd interview taken by Managing Director who makes the final decision.
Selected employees then meets the HR manager to know the joining date and finish off the formalities.
THE ENTIRE PROCESS OF REQUISITION IN A NUTSHELL
1. Vacancies created due to termination, promotion, expansion, additional work load, new
product introduction.
2. The concerned department sends a requisition to the HRM department along with job
description and specifications.
3. HRM accordingly prepares application for the advertisements in a few local and national
level newspapers.
4. Applications received are scanned primarily and rejected on the basis of basic
educational; requisites.
5. Eligible candidates are called for interview sessions on fixed date and time. They are
reminded by phone calls after the official letters posted.
6. 1st interview is taken by concerned Department head that made the requisition of
employee. The
interview is mostly a technical session.
7. 2nd interview is taken by the HR manager to get a feel of the employee’s SWOT.
8. 3rd and final interview is taken by supreme- MANAGING DIRECTOR, who makes the
final say on whether the employee is suitable.
9. If selected the employee finishes off the formalities with HR manager.
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TRAINING
(A) TRAINING FOR NEW RECRUITS
- CORPORATE RECRUITS
1). AT THE ADMIN DEPT.
1 st Day : -
The training for the new recruits starts with a rather informal meetings and visits at company
premises to get a feel of the place where they are supposed to put in long hours of work. They
observe the working system and conditions. The flow of work and other minute details employee
can observe and get acquainted with the entire place.
2 nd Day : - (Product training)
-The recruits are called upon by the Department head and HR manager in the conference room
for imparting the entire product knowledge.
-The detailed handouts of company’s products is given to the employee and are expected to have
a fair knowledge of the entire product range of company.
-Handout regarding the RULES AND REGULATIONS AT THE COMPANY is given to them.
-Recruits are expected to learn about products and company’s strategies for them, as home work.
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3 rd Day : -
-Then an informal cross–checking is carried out as to what the employee has absorbed in a short
period.
-Inter-department responsibilities are delegated to them to limited extent to enable them to get
feel of the real job.
- This entire process goes on for a week, after which they are taken to site of manufacturing-
WORKS.
2). AT THE WORKS. (SITE)
-After a week’s training at the Administration Office, the new recruits are in for a weeks training
at the PLANT’S site.
- The employees are taken to company’s plant site at SANTEJ, where various products section
like
PLATE MILL
ROLL MILL
FLAT MILL
QUALITY CONTROL
STAKE MILL
CAPRI POWER PLANT
SLAB CASTER
CONE CASTER
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Along with the CRM and HRM departments
- An overview of the entire process right from procurement of raw materials to sales is
given to recruits along with knowledge of wide range of products that SHAH ALLOYS
don the honors for.
- They are also arranging meetings with department heads and other seniors with the new
recruits.
- The company feels, all this will help the employee to learn to build interpersonal
relationships.
Thus an exhaustive training period of at least 15 days even to the employees of
corporate office ensures that they are fully aware of the company as a whole, they are
working for. This also helps to build the image of the organization as each and every
employee of the company has a considerable knowledge of its products and processes.
RECRUITS AT WORKS
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-As the employees at WORKS basically deal with the technicalities of the production, their
training sessions largely differs from the recruits at corporate office.
-The training sessions from day 1 are purely technical, including every minute detail from
specification of raw materials to large furnaces.
-A group of 10 recruits undergo a training of 1 month under the mentorship of an experienced
employee at a senior position.
-The training sessions mainly concentrates on the various specifications and settings of the large
appliances such as heating furnaces and others such as
Billet-Bloom Caster- 6/11 meter radius bow type billet - bloom casting machine, capable of
casting 100mm Square to 160mm square section (fully closed)
Slab Caster-7 Meter radius slab caster. The widest in India for stainless steel slab caster from
200mm to 1800mm wide and in 140mm thickness to 160mm thickness
-Due to very high costs involved in these giant appliances and large production batches, a very
small mistake in the using or setting them up, can cause huge financial losses.
-Thus this kind of complications is widely covered up in the training sessions.
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-ROLLING MILL
(B) TRAINING FOR EXISTING EMPLOYEES ( ON THE JOB TRAINING)
-On the job training for existing employees is carried out every month for one or two days.
- HRM department communicates each month the details of the training sessions to be held.
- The batch size of this training program does not cross 35.
-On the basis of the contents of training program to be held, the respective heads of each
department decide which employees of his department are in need of this training and
accordingly authorize them for the purpose.
-A maximum of 2-3 employees from each department are scheduled to be trained each month.
- Professional and experts from various departments are being called to deliver technical and
motivational lectures in such training sessions.
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- Such training involves a cost of above Rs. 10000 per day.
BENEFITS AND SERVICES AT SHAH ALLOYS LTD
INSURANCE:-
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-Group life insurance of all the employees, regardless of the health or physical conditions
is undertaken by the company. The company pays the 100% of the base premium. The
amount of life insurance is of employee’s 2 year salary.
EMPLOYEE SAFETY AND HEALTH:-
-To ensure total safety at the work place, various measures are taken at SHAH ALLOYS
LTD.
-A full body protective suit along with a helmet is a prerequisite before entering the
WORKS
( Plant site).
-Proper glasses to protect the eyes and face from fire are provided.
-Due to immense heat at the site huge fans run round the clock to ensure relief to the
employees.
-A fully equipped paramedical staff in case of emergency (considering the risk from fire)
is always kept ready round the clock at the doorstep of WORKS
.
-There is a well equipped dispensary with expert doctors and support staff to ensure quick
treatment.
-A staff of firefighter with latest fire fighting tools are employed at the site considering
high danger from fire.
WORK PLACE RESTRICTIONS:-
-Alcoholism at work place is strict no at the SHAH ALLOY PREMISES.
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-Violence at work place to settle scores are strongly prohibited and strict disciplinary
actions are taken against them those do.
PERFORMANCE APPRAISAL
-At SHAH ALLOYS LTD. the PERFORMANCE APPRAISAL quite simple and straight
forward.
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- Any employee’s performance appraisal is carried out by his respective department head in a
specific manner.
- The performance appraisal is carried out only for the employees who have completed minimum
one year at the company.
- The Graphic Rating Scale Method is used for performance appraisal.
- Each employee is being evaluated each year through this method by his Department Head.
- A minimum score is pre-determined for any kind of promotion.
- Apart from this, rater’s discretion also has a great role to play, which depends on the type of
image of the employee that has been created in mind of the doctor.
- PERFORMANCE APPRAISALS interviews are also taken. To check the level of confidence
that the employees possess interview is best way of gauging.
UNIQUE HR PRACTICES AT SHAH ALLOYS LTD
-In most of the organizations, development needs are identified as a part of performance appraisal. In that
case an employee is more bothered about the assessment grade he would get and the superior would focus
more on the assessment message he would be required to give. Focus on rewards from both the sides
generally dilutes the focus on development need identification.
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-Every year in the month of January, employee & HOD meet for 2 hours away from workplace.
-In the meeting the employee is encouraged to share his developmental needs, the support he wants from
the organization, from his superior and the type of support he will generate himself.
-After that the HOD provides the feed back to the employee on the plan of development.
-After the meeting HOD provides the data of developmental needs of the employees to HRD department.
-Based on these inputs, HRD department prepares development calendar for the complete year. As a part
of this unique practice each individual employee is given commitment letter.
Your Development Is My Concern - A unique practice at Shah Alloys Ltd. where appraisal and
development needs are separated.
In most of the organizations, development needs are identified as a part of performance appraisal. In that
case an employee is more bothered about the assessment grade he would get and the superior would focus
more on the assessment message he would be required to give. Focus on rewards from both the sides
generally dilutes the focus on development need identification.
At Shah Alloys Ltd, they have separated out these two major exercises. i.e. performance assessment and
development need identification.
Every year in the month of January, employee & HOD meet for 2 hours away from workplace. In the
meeting the employee is encouraged to share his developmental needs, the support he wants from the
organization, from his superior and the type of support he will generate himself. After that the HOD
provides the feed back to the employee on the plan of development. After the meeting HOD provides the
data of developmental needs of the employees to HRD department. Based on these inputs, HRD
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department prepares development calendar for the complete year. As a part of this unique practice each
individual employee is given commitment letter communicating him about the date of his development
programs in advance.
The program has contributed substantially towards creating open, very warm and encouraging work
environment.
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ANALYSIS OF IMPLEMENTED STRATEGIES
Our project study on HR practices at SHAH ALLOYS LTD. has enabled us to look
beyond the text book concepts of HRM.
We also discovered as to which extent any corporate (such as SHAH ALLOYS LTD.)
follows the latest HR trends and practices.
While moving along our project we have tried to build a logical reasoning for each and
every activity that the HRM undertakes and how far they are successful for effective
management of human capital.
Thus we have tried to suggest some innovations in HR activities at SHAH ALLOYS
which might be helpful to further strengthen the HRM.
TRAINING:-
-The training procedures and methods undertaken at SHAH ALLOYS LTD. are quite
simple and logical.
-It is interesting to note that even though employees of corporate office not have much to
deal with site side, the training procedure takes care that they do undertake visits at sites
and get acquainted with heart of the company and its real people and products.
- Thus it not only ensures the employees’ knowledge about the company they are
working for but also enhances the prestige of the company when the details of the
company are the top of their employees’ mind.
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-In much similar situation in case of WORKS’ recruits are purely given the technical
training concerned to them which is to some extent, logical. But then still even those
employees need to have feel of the entire organization although may not be exhaustive as
in case of corporate office recruits.
- Thus we suggest some sort of informal meetings arranged for them with the corporate
employees at corporate premises, which not only enhance the interpersonal skills but
also inculcate a bonding among the all the employees of the company.
PERFORMANCE APPRAISAL
-The Performance Appraisal techniques seemed quite dull without proper leveraging.
- Graphic Rating Scale alone will be a less reliable tool for performance evaluation,
although interview will help to a certain extent.
- A viable and effective solution could be ‘CRITICAL INCIDENT METHOD’ which
would ensure that the person is judged on his actions at various time frames of his job.
- Critical Incident Method, rates the employee on the basis of his response (good or
poor ) to critical situation i.e. a contingency.
- Thus it also gives us an idea as to which employees and how much capable they are of
taking the responsibilities in absence of a leader or in a tight situation.
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ENTERTAINMENT PROGRAMS
-The working environment is becomes quite boring due monotony of work at SHAH
ALLOYS premises. Some entertainment program such informal meeting in small parties
can be arranged to keep the employees afresh in spite of the work load and pressures.
- Further picnics on short trips can be arranged to develop a bond among the co-workers,
because its while enjoying that people come closer and that closeness can reap benefits
when they get back to serious work.
- It will also make the employees feel that life is much more than just working at office
like place.
THE ROLE OF HR IN QUALITY MANAGEMENT
-Quality programs rely so heavily on well-trained, committed employees that it’s hard to
separate the two.
-Thus at SHAH ALLOYS, the HR department has made it a point to stress heavily on
quality factors right from the beginning to all stages of training and even after that.
- Due to giant appliances used for the steel production which require utmost care while
setting them up for the production, as a minor fault can disastrous or might spoil an entire
lot of production, which could prove huge losses.
- Thus to make it very clear that even a very low margin of error is not acceptable, the
mistakes are heavily discouraged by monetary fines and even demotion or termination in
extreme cases.
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LEADERSHIP ASPECT
-At SHAH ALLOYS LTD. a very sound leadership technique is used wherein the
employees feel themselves to be very much a part of the organization.
- As each employee every year gets a chance to give feed back and suggestions
for his own as well the organization’s development, he is highly motivated to
work at an emotional level for the organization.
- The only recommendation that we could give that a gap of an year for providing
a feedback is too long a period. We suggest to carry on the same practice at
intervals of six months.
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CONCLUSION
-The branch of Human Resource Development or you may call it Human Resource
Management, includes a lot many things i.e. all the activities that an organization
undertakes are a part of HRM directly or indirectly.
- The theory of HRM speaks a whole range of activities that is supposed to performed
under HRM. But in reality, even in corporate scenario of India, it is still a very immature
concept.
- Application of HR in real sense has still a long way to go.
- But all this can never undermine the need and importance of an effective HR
department in any organization.
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