full company study

7/29/2019 Full Company Study

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1.1 The HR Service Industry

While there is no uniform definition for the HR service industry, it we may define it asthe rewards derived from an y decision on buying services for any part of the humancapital value chain. The HR service industry can be broadly divided into two mainfunctions permanent recruitment of executives and professionals, and temporar yrecruitment, specializing in professional and general staffing. HR services are bein gincreasingly viewed as a distinct industry with the role of HR consultants evolving withchanging market dynamics.

Large Indian companies are diversifying into new sectors and prefer candidates

with relevant experience. However, since their HR function find it difficult attimes to source candidates from the large and geographically dispersed talent pool,companies are increasingly looking at external help. This change in approach andmindset has made sourcing a relatively complex activity, resulting in companiesincreasingly partnerin g with recruitment consultants with a global footprint oraccess to global databases to source the right cand idates.

The service industry is a people-driven one and is clocking double-digit growth.The service industr y has a large manpower requirement, which facilitates the needfor a large HR fun ction to fulfill its growing needs. Since recruitment is not arecurring activity and is a function of economy and a companys growth plans,companies prefer to partner with consultants to source the right candidates as andwhen required, and have their HR function focus on the core and strategicactivities of selection, planning and retention.

Temporary staffing is a growing human resource trend and the phenomenon isfinally catching up in India. While industry experts estimate employee leasing to

be a US$140 billion business worldwide, the domestic staffing industry has yet towitness large figures. The scenario is however set to change as companies areincreasingly partnering with consultants, and experts expect that in the near future,2.5%-3% of the workforce in the country will be hired on a temporary basis.


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1.2 Market Size

The overall organized HR solutions industry g The overall organized HR solutions industry grew at a C AGR of 21% between FY08 rew at a CAGR of 21% between FY08FY11 from US $228CR. ( US $228CR. (INR127 billion) to US $4094million (INR228 billion. INR228 billion.)

The HR solutions market was affected by the global economic slowdown, and slowed The HR solutions market was affected by the globaleconomic slowdown, and slowed The HR solutions market was affected by the global economic slowdown, and sloweda year on year at the rate of 34% in FY09 to 13 % in FY11. The slowdown forced 34% in FY09 to 13 % in FY11. Theslowdown forcedcustomer organizations to defer their hiring plans and reduce customer organizations to defer their hiring plans and reduce their spend on HR.their spend on HR.

1.3 Industry Structure ructure

The HR solution industr y comprises: The HR solution industr y comprises:

Permanent recruitment Permanent recruitment Temporary recruitment Temporary recruitment Other segments Other segments


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Temporary and permanent recruitment are estimated to contribute 86% to the overallmarket size. Tempo rary recruitment (staffin g) has the largest share at 73% of themarket, since it includes pass through salar y costs. Permanent recruitment has a 13%share and only includes the net fees from each successful referral.

The others categories primarily include small and emerging offerings such as thefollowing:

Payroll administration (producing checks, handling taxes, dealing with sick-time and vacations), employee benefits (health, medical, life insurance,cafeteria, etc.)

Recruitment process outsourcing,


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HR management and consulting (benefit con sulting, hiring and firing, HR management and consulting (benefit con sulting,hiring and firing, HR management and consulting (benefit con sulting, hiring and firing,

background interviews, exit interviews and wage reviews), background interviews, exit interviews and wage reviews),

Employment training Employment training

Online job portals (sourcing of candidates) Online job portals (sourcing of candidates)

1.3.1 Temporary staffing Temporary staffing

Temporary staffing, one of the leading HR trends today, is ex pected to Temporary staffing, one of the leading HR trendstoday, is ex pected to Temporary staffing, one of the leading HR trends today, is ex pected toincrease its penetration significantly, given the current uncertain increase its penetration significantly, given the currentuncertain increase its penetration significantly, given the current uncertaineconomic conditions. Companies and economic conditions. Companies and captive units are likely to captive units are likelytoincreasingly depend on agencies to lease th em with the required increasingly depend on agencies to lease th em with therequired increasingly depend on agencies to lease th em with the requiredmanpower in time, to meet sudden demand from clients. Temporar y manpower in time, to meet sudden demand fromclients. Temporar y manpower in time, to meet sudden demand from clients. Temporar y

recruitment has a share of 73% of the overall market, since it includes recruitment has a share of 73% of the overall market,since it includes recruitment has a share of 73% of the overall market, since it includesthe pass the pass-through salary costs of employees that are leased to customer s of employees that are leased to customerorganizations. organizations.

1.3.2 Permanent Recruitment Permanent Recruitment

Recruitment is expected to evolve from a fragmented ecosystem to Recruitment is expected to evolve from a fragmented

ecosystem to Recruitment is expected to evolve from a fragmented ecosystem to

players adopting ways to work closely with clients requirements, players adopting ways to work closely with clientsrequirements, players adopting ways to work closely with clients requirements,where resume pushers (who do not add where resume pushers (who do not add significant value to their significantvalue to theirclients) will eventually get marginalized. Recruitment companies are clients) will eventually get marginalized. Recruitment

companies are clients) will eventually get marginalized. Recruitment companies arelikely to move away from sourcing relevant candidates to accessing the likely to move away from sourcing relevant candidates toaccessing the likely to move away from sourcing relevant candidates to accessing theright ones by using psychometric and other robust tests to shortlist right ones by using psychometric and other robust teststo shortlist right ones by using psychometric and other robust tests to shortlistthem.


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1.3.3 Other segments

Organizations are fast realizing the benefits of outsourcing non-coreactivities and focusing on enhanced value added activities.Outsourcing non-core activities enables HR professionals to moveaway from routine administration to a more strategic role.

As a result, the number of companies outsourcing HR activities is ex pected tocontinue to rise and the scope of outsourced HR activities to expand.

The HR solutions industry is seems poised for interesting times; with 11 deals in thelast three years, the overall sector is expected to keep innovating and evolving towardexponential growth

1.4 Payroll processing and compliance

Payroll outsourcing largely involves analysis of organizational data, computation ofgross salaries, TDS, allowances, reimbursements of expenses and filing of TDS.Organizations have the option to establish their payroll systems, but it is time-consuming and requires expertise. Increasing workloads, strategic roles gaining inimportance, low costs and the enh anced quality of outsourcin g is drivingorganizations to outsource their processes.

According to a survey conducted by the Society for Human Resource Management,

49% of organizations are outsourcing their payroll processes due to their increasingheadcount. This space is dominated by large established players such as Hewitt andMafoi and small players find it difficult to enter the space, since not all of them

provide end-to-end solutions and last-mile compliance, which is an extremelyimportant factor. Fu rthermore, or ganizations are not comfortable sharing sensitiveinformation with less established and known players.


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1.5 Major Competitors In Industry

COMPETITORS SEGMENTS

Mafoi Recruit ment,

search and

staffing

Adecco Recruit ment and

staffing

Global Innov Recruit ment and

staffing

Genius Consultants Staffing

E gon Zehnder Search

ABC Consultants Recruit ment and

search

Heidrick & Struggles Search

Future Focus Staffing

ADP Staffing and

Payroll

Paycom Payroll

NetChex Payroll

Pinnacle Payroll


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Facil Intern et Technologies is a leading technology organization founded by seasonedmanagement professionals and alumnus of IIM and headquartered in the Silicon Valley ofIndia, Bangalore.

2.1 The Four Pillars of Facil


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Value Creation V Facil provides products and services that customer findsconsistently useful. It typically focuses on product and process innovation andon understanding unique customer needs with ever increasing speed and

precision.

Innovation V Facil is always focused on the creation of better and moreeffective products, services, technologies and ideas that are readily available tocustomers.

Quality V Facil believes in delivering the quality product to its customer and

fulfilling their needs and expectations.

Strategy & Execution - V Execution is a discipline, and integral part tostrategy. Facil Bridges the gaps between the customers needs and wants.

2.2 Customer Philosophy

Walking in the Customer shoes. Customer is core toFacils business philosophy. All functions, employees,

processes, strategy, execution are focused at maximizingCustomer Value through Customer Intimacy.Affordability is the key to customer fulfillment and our

Research and Development teams are trained to work oninnovative solutions, products and services that surroundthis objective. Our teams are taught to walk in the

customers and to understand their contempo rary needs and design solutionsaccordingly.

Our Leadership team closely works with internal teams to gain intimate un derstandin gof our current customers and markets, potential new customers and markets to buildteam, organization competencies through regular consumer studies, published reports,special surveys etc.

All processes are based on the foundation of Outside-In thereby achievin gCustomer Delight and Moments of Delight.


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2.3 Corporate Governance

Facil has a well-defined and enforced corporategovernance policy under force addressing the f inancial,compliance and related best practices. The policy ensuresadherence of ethical standards and best practices andcovers the stakeholders such as customers, employees,shareholders, debt holders, trade creditors, suppliers andcommunities affected by the corporation's activities. The

Corporate Governance at Facil is directed and controlled in a professional, transparentand responsible manner.

2.4 Corporate Social Responsibility

Facil recognizes that its businesses should make an impactthe earth communities and has designed CSR initiatives tohelp orphans, physically and mentally challenged,orphanages and sponsoring medical camps for the deprivedsections of societies in the urban, semi-urban and rural areas.

Facil also has a strong commitment for Clean and GreenEnvironment and has no tolerance for non degradablePlastic usage and other areas that add to env ironmental

pollution. New initiatives are being designed to ensure

adding value to the society we live and build a clean place for tomorrowsgenerations.

2.5 Mission & Vision

Facil aims to make technology affordable, convenient and scalable for Enterprises,Small and Medium Enterprises (SME) and Consumers with an Outside-InApproach.

The Outside- In Approach is aimed at creatively delivering value to customersthrough Customer Centricity and Customer Intimacy through Collaboration and

thereby maximizing long-run shar eholder v alue.


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2.6 Services of Facil

SPARK 2.6.1 - Start Up Payroll Accounting Risk Management Services .Thisportfolio of service includes-

IPMS (INTEGRATED PAYROLL MANAGEMENTSERVICES)

i PMS is a dedicated payroll processing platform developed by us toO ensure a 360 coverage of all your payroll

related issues. A comprehensive and integratedservice pack which not only takes care of

processing payroll on timely basis, but also integr ates compliance andtraining as its core competencies.

The platform has been designed to empower you and youremployees. i PMS has been developed by the best professionals in the

business, comprising tax experts, investment and wealth managers,professional trainers and revenue representatives

IPMS is for small, medium and Large enterprises. The IPMS serviceofferings are marketed by Facil and Processed By BalakrishnaConsulting(BCL) a MSI Globa lAlliance Member.

IAMS(INTEGRATED ACCOUNTING MANAGEMENTSERVICES

IAMS is for small, medium and Large enterprises. The IAMS serviceofferings ar e marketed by Facil and Processed by BalakrishnaConsulting (BCL) a MSI Global Alliance Member.

2.6.2 Balakrishna Consulting (BCL)

Balakrishna Consulting (BCL) THE

BACKEND OPERATION TEAM OF FACIL

is a team of Chartered Accountants, Compan ySecretaries, Cost Accountants and

Advocates. BCL team is having over 15 years of experience in CorporateLaws. Our expertise services are not just restricted to Company Inco rporation,

Company Formation, LLP Registration or assisting in starting your dream


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business in across India. Our team assist you at each level to comply with all business in across India. Our team assist you ateach level to comply with all business in across India. Our team assist you at each level to comply with allthe applicable laws and nurture you to develop your business. the applicable laws and nurture you to develop your business. the applicablelaws and nurture you to develop your business.

2.7 Functional Units Functional Units

A business is normally organised by its fun ctions, e.g. marketing department, A business is normally organised by its fun ctions,e.g. marketing department, A business is normally organised by its fun ctions, e.g. marketing department,accounts department and so on. This is because being grouped together allows the accounts department and so on. This is because

being grouped together allows the accounts department and so on. This is because being grouped together allows thefunctions to benefit from specialisation and division of labour. This leads to l functions to benefit from specialisation and divisionof labour. This leads to l functions to benefit from specialisation and division of labour. This leads to lowerunit costs and a greater efficiency. However it can mean that there is departmental unit costs and a greater efficiency. However itcan mean that there is departmental unit costs and a greater efficiency. However it can mean that there is departmental

rivalry. The various departments of Facil will be explained in later chapters. The various departments of Facil will be explained in laterchapters. The various departments of Facil will be explained in later chapters.

2.8 Competitive Advantage Competitive Advantage

A competitive advantage is an advantage over competitors gained by offerin g A competitive advantage is an advantage overcompetitors gained by offerin g A competitive advantage is an advantage over competitors gained by offerin gconsumers greater value, either by means of lower p rices or by consumers greater value, either by means of lower p rices or by

consumers greater value, either by means of lower p rices or by provid ing greaterbenefits and service that justifies higher prices. benefits and service that justifies higher prices.


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2.8.1 Competitive Strategies Competitive Strategies

Michael Porter suggested four "generic" business strategies that Michael Porter suggested four "generic" business strategies thatMichael Porter suggested four "generic" business strategies that could beadopted in order to gain competitive advantage. The four strategies relate to adopted in order to gain competitive advantage.The four strategies relate to adopted in order to gain competitive advantage. The four strategies relate tothe ex tent to which the scope of businesses' activities are narrow versus broad the ex tent to which the scope of businesses' activitiesare narrow versus broad the ex tent to which the scope of businesses' activities are narrow versus broadand the extent to which a business seeks to differentiate its products. and the extent to which a business seeks to differentiate its products.and the extent to which a business seeks to differentiate its products.

.


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3.1 Organizational Structure

The framework, typically hierarchical, within which an organization arranges its linesof authority and communications, and allocates rights and duties.

Organizational structure determines the manner and ex tent to which roles, power,and responsibilities are delegated, controlled, and coordinated, and how informationflows between levels of management.

A structure depends entirely on th e organization's objectives and the strategy chosen

to achieve them. In a centralized structure, the decision making power is co ncentratedin the top layer of the management and tight control is exercisedover departments and divisions. In a d ecentralized structure, th e decision making

power is distributed and the departments and divisions havevaryin g d egrees of autonomy. An organizational chart illustrates the organizationalstructure.


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Facil o rganization structure is d efined by the Outside In Philosophy. Theystrongly believe that customer is the key driver of their business objectives. Allinternal operations at Facil are designed to address the needs of the C ustomer to bringin Moments of Customer Delight at all times. The board, CEO, Senior, Middle andJunior Management teams are assigned to the Customer and address their needs andWork to make things possible.

As Facil is a startup it is a having a Flat organization (also known as horizontalorganization) hierarchy which means o nly few or no levels ofintervening management between staff and managers. The idea behind is that well-trained workers will be more productive when they are more directly involved in

the decision makin g pro cess, rather than closely supervised b y many layers ofmanagement.

3.2 Advantages

Customer-Centric Focus

People who service customer needs understand who the targetaudience should be, what their needs are, how they view pricing, andhow to sell the product. In a flat organization, managers are broughtinto the process of accomplishing work for clients while workers are

asked to make more decisions, bringing them more into the management arena. Aflat organization moves everyone closer to the customer so that everyoneunderstands the needs of those people using the product or service.Employee Empowerment

Less managers mean that in many cases, employees need to be able tomake decisions without intervention from a higher layer of authority.More training of emplo yees so that ever yone better understands howa company can achieve its goals and keep customers happy. In the

long term, emplo yees are freer to service the customer as they'd like, which leadsto higher retention of employees with higher job satisfaction and also moresatisfied customers.Flexibility

Organizations relying on a flat structure need to cross-train employeesto fill in for others quickly when special situations arise. This cross-training makes the organization more reflexively when problems arise,and creates a speed y growth business, which is able to solve customer

problems and fix any complaints that arise faster than a traditional organization.


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Accountability

Often in a traditional operation it's easy to "pass the buck" toanother employee. Because a flat organization needs well-defined ar eas of focus, employee accountability is much higher.This makes it easier f or managers to assess strengths and

weaknesses of employees and look for sales or efficiency opportunities in thesystem.Cost

A flat organization is less costly because there are less people in

the management chain and more persons touching the end productor service. Cost per piece of product falls dramatically as layers ofmanagement overhead are reduced. New hire training costs also

lower as retention levels increase.

3.3 Disadvantages

Confusing Leadership

In a flat organizational structure, the layers of leadership are few but leadership tendsto be more organic in nature. Since managers are on equal footing and involved in thesame projects together, they may give employees different tasks in a confusin g

manner. Unless the process is very clear, an emplo yee may be trying to work for twobosses at the same time, leading to confusing and contradictory instructions.

Limited Structures

Flat organizational structures can only last so long. As a business grows andeventually goes public, the flat structure cannot stay. A public busin ess needs a boardof directors to evolve into a corporation, and a more complex business structure toexpand into multiple branches.

Employee Role Confusion

Just as manager roles can become confused in a flat structure, so can employee roles.An employee may go to work for a flat or ganization expecting to do one job, but find

out that pieces of many other jobs are also required as needed. This makes it difficultfor some employees to focus and specialize at their jobs.


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3.4 Impact on Employees

AccuracyFlat organizations do not have this issue as there are less layers or people for themessage to travel acr oss. Communication accuracy increases greatly in flatorganizations.

SpeedSpeed of communication is a big advantage for flat organizations. In a flatorganizational structure, only one or two approvals are usually necessary and thisspeed allows new products and services to be implemented faster and with less red

tape. Speed increases with fewer levels of man agement.

OwnershipFlat organizational structures produce a greater degree of ownership within anorganization. Employees who are closer to the customer are more accountable fortheir decisions and can take action on the spot to please a customer. Your employeesfeel more empowered and responsible fo r their actions when they do not have to seek

permission from several layers of management. Ownership of your employee's jobduties is a major benefit of flat organizations. Employees act more like owners whenthey feel that their d ecisions affect the success and profitability of your company.

EffectivenessYour employee's effectiveness also increases in a flat organization. Rules, regulationsand reporting structures are much less complicated. Understanding expectations and

assignments is easier when there are only one or two managers involved insupervising an employee or department. Conflicts between departments is reducedwith a flat organizational structure and cooperation increases when everyone needsthe assistance of others to succeed. Fewer layers of management allows yourassociates to operate with greater flexibility which leads to fewer co nflicts andincreased effectiveness for ever yon e.


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4.1.1 Production Department

The main role of production is to turn inputs into outputs. Outputs refer to a finishedservice and inputs are the data that are needed to make salary slips. When a businesscompletes this process they are able to achiev e customer satisfaction by producin gservice that is ready to be used and fit for purpose.

The production department is responsible for ensuring quality is achieved in eachservice provided. They will need to carry out inspections and implementsuitable quality initiatives. This is one of the major duties of this department becauseif mistakes are made on service, customer satisfaction will be decreased or if service

is ruined during the production process it means that the compan y will have to throw"bad" service. Both aspects will lead the company to a loss of profit. Qualityassurance will have to be carried out every day on a number of occasions to ensurethat the production process is working efficiently and effectively.

At Facil, production department ensures that employees are paid accurately and ontime and that the company complies with all payroll tax laws.

4.1.2 Production Planning and Control

Production planning may be defined as the technique of foreseeing every step in along series of separate operations, each step to b e taken at the right time and in the

right place and each op eration to be performed in maximum efficiency. It Facil towork out the quantity of material manpower, machine and money requires for

producing predetermined level of output in given period of time.


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Once Facil takes the order from a client regarding the payroll processes its next task isto take steps for production planning and control, as this function is essentiallyrequired for efficient and economical produ ction.

Planned production is an important feature of Facil. The ability to look ahead,organize and coordinate and having plenty of driving for ce and capacity to lead andability to supervise and coordinate work and simulates his associates by means of a

programme of human relation and organization of employees, Facil would be able toget the best out of his production unit.

4.1.3 Production Process

Facils backend team is responsible for the recording of payroll data, includingadjustments and supplements, into the Payroll System in accordance with laws andregulations as applicable. Following points is to be taken into consideration while

processing the payroll:4.1.3.1 Record Payroll Data

Payroll system is checked and set up if necessary to ensure that emplo yee datais included

Payroll data is check ed and discrepancies are clarified with designated persons

Employee pay period details, deductions and allowances are entered in payrollsystem in accordance with source data

Payment due to individual emplo yees is calculated to reflect standard pay andvariations in acco rdance with employee source data

4.1.3.2 Prepare Payroll

Payroll is prepared within designated timelines in accordance withorganisational policies and procedures

Employee entitlements are calculated, recorded and reconciled in accordancewith legislative requirements

Total payments for pay period are r econciled, and irregularities are checkedand corrected, or refer red to designated p ersons for resolution

Arrangements for payment are made in accordance with organisational and

individual requirements


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Authorisation of payroll and individual pay advice is obtained in accordancewith organisational requirements

Payroll records are produced, ch ecked and stored in accordance withorganisational policy and security procedures

4.1.3.3 Handle payroll enquiries

Payroll enquiries are r esponded to in accordance with organisational andlegislative requirements

Information is provided in accordance with organisational and legislativerequirements

Enquiries outside area of responsibility or knowledge are referred to designatedpersons for resolution

Additional information or follow-up action is completed within designatedtimelines in accordan ce with organisational policies and procedures

4.1.3.4 Maintain payroll

All information and record keeping relating to the payroll function is maintainedin accordance with relev ant legislation and regulations

Month-end and year-end checklists ar e produced and reconciled to ensure

compliance with relevant legislative and management deadlines

Records and systems are updated in line with salary reviews and other changes inemployment status

Back -up and disaster recovery systems are put in place

Payroll reports are generated and distributed in line with organisational policy

Business Activity Statement data is extracted and applied in accordance withrelevant legislation and regulation


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o Pay the net pay due, biweekly, by electronic fund s transfer (direct deposit) tothe employees financial institutions.

o Promptly make payment in the proper amount to all persons entitled to bepaid, in compliance with applicable laws, regulations.

o Prepare adequate and r eliable payroll r ecords.

o Promptly record accounting entries for the disposition of all authorizeddeductions from gross pay.

o Maintain adequate control over, and provide adequate retention anddisposition of, all payroll related documents.

o Maintain individual pay records to show gro ss compensation (including

allowances) by type and amount, deductions (including allotments) by typeand account, and net pay for each period.


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o Review payroll operations continually and adjust them to be as efficient,effective, and economical as possible, and ensure that payroll systems are inaccordance with all legal requirements.

4.1.4 Production Schedule

It means working out of time that should be required to perform each operationand also th e time necessar y to perform the entire series as routed, makingallowances for all factors concerned. It mainly concerns with time element and

priorities of a job. The main aim is to schedule that amount of work which caneasily perform without interference. Its not independent decision as it takes into

account following factors.1. Computer systems to process the payroll service.2. Personnel who possess the desired skills and experience to operate the

equipment and perform the typ e of work involved .3. Necessary data to p rocess payroll.

4.1.5 Production System4.1.5.1 Just-in-Time Production System

The essence of JIT philosophy is to eliminate waste. Managers try to

(1) reduce the time that products spend in the production process and(2) eliminate the time that products spend on activities that do not add

value

At Facil Just in time (JIT) refers to a system in which pay slips reaches atthe right place exactly as they are n eeded.

In other words, in a JIT setting, demand triggers each step of theproduction process, starting with customer deman d for a finished service atthe end of the pro cess.

V Necessary Tools for JIT Implementation

A JIT production system, as explained above, aims at minimizing working-process and reducing lead-time, and increasing service quality. In order toachieve these b y implementing a JIT manufacturing system, the following

aspects should be put into consideration and then operation


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V Establishing Reliable Relationships with customers

Establishing JIT production system at Facil, clients must be able to providereliable data on time because in JIT setting, there is no allowance for thestoppage resulting from the lack of data. If any stoppage occurs, compan y willnot be able to offer the service to customers on time. In other words, lead-timewill be longer. Furthermore, Salaries will be delayed which causesdemotivation in employees. Therefore, successful JIT production dependslargely on working with cooperative and reliable customers.

4.1.5.2 Total Quality Management (TQM)

Total quality management is a general philosophy of gradu ally improvin gthe backend operations of Facil through the application of rigorous processanalysis by ever y involved employee and business partner. TQM is usuallyapplied at the tactical, front-line level, where production, clerical, and low-level managers are deeply involved. There are a number of tools availableto assist in a TQM effort, such as:

Benchmarking Accuracy Failure analysis Plan-do-check-act (PCDA) cycle Process management

Product design control Statistical process control


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4.2.1 Finance Department Objectives

To Manage & account for the financial resource of the Organization, to forecastits requirement in the future and plan accordingly and to check for deviation.

Report the financial performance of the company to Management, and to complywith the Govt. rules and regulations

4.2.2 Functions of Finance Department

Some of the main functions are Payroll, billing, Preparation of journal, ledger and

trial balance, Bankin g, Financial resources & materials accountin g, Budgetpreparation, Cost accounting, Auditing, Preparation of financial statements &reports, Corporate Planning.

4.2.3 Process of Finance Department

Finance department in Facil is divided into five sections for carr ying out itsprocess. They are:

Bills & Materials Sales Costing, MIS, Budget Cash, bank & Payroll and

Tax & duties4.2.3.1 Bills & Materials - The main functions is to record accounting and

receiving, Dispatch and holding of bills

4.2.3.2 Sales Accounting

Accountability for selling and distribution of services. Recording the transaction Transfer of information from depots to HO Compilation of reports


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4.2.3.3 The Costing, MIS And Budget Section

This section is concerned with ascertainin g the cost of mark eting theservices, providing information, helping to prepare a budget, forecasting the

performance and finally making a plan.Fixed cost V - Salaries and wages (Direct, Indirect, Administration &Maintenance), Staff welfare expenses, Insu rance, office maintenance,Depreciation, Administrative overheads, bonus.

V MIS (Management Information System)

To provide the management with vital facts which affects the efficientrunning of the business for decision making on planning, organizingand controlling the major activities of the organization and initiatingsuitable action.

MIS Briefly consists of:

Monthly report of all the expenses is prepared P & L Account-Statement and its analysis Production performan ce of the division Inventory position Cost of production - Actual and budget for the month Specific information important for the management - Major

projects, man-hour utilisation etc.

Budgeting V

Two types of budget - Revenue and Capital budget

Two types of estimates - Bud get estimate and revised estimate

4.2.3.4 Capital Expenditure

Shows all items of capital ex penditure to b e und ertaken during the budgetperiod like expenditure on acquisition of new assets like machiner y,furniture and office equipments which have reasonable life; expansion ofexisting facilities and modification and improvements to plant and

machinery resulting ini) increase in capacityii) Increase in useful life


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iii) Improvement in quality of output andiv) Reduction in cost of output is treated as capital expenditure.

V Monthly report

On closing of the accounts of the months a monthly P & Laccount is prepared. This report would give a comparison of theactual for every month against budgeted performance.

4.2.3.5 The Cash, Bank And Payroll Section

This section is concerned more with the day to day activities and less offuture forecasting & planning.V Cash And Bank Accounts Section

The various functions include:

Receipt of cash, chequ es, bank drafts, and postal money orders Payment of cash, ch eques, bank drafts, and letters of authority Handling of bank deposits/withdrawals, custody of cash and inter

unit transfer of funds Maintenance of petty cash books and cash books Reconciliation of bank accounts Security arrangement of cash handling

Safe custody of valuable documents Cash interests calculation Any other duties assigned by authorized officer

V Payroll Section

Functions of the section are:

Preparation and disbursement of salaries and wages to managerialand non-managerial employees

Effect various recoveries through payroll and remit the same toconcerned agencies

Processing of various personal payments advances Keeps books of account for the above tr ansaction


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4.3.1 Marketing Department

The marketing department must act as a guide and lead the company's otherdepartments in developing, producing, fulfilling, and servicing products or servicesfor their customers. Communication is vital. The marketing department typically has a

better understanding of the market and customer needs, but should not actindependently of product development or customer service. Marketing should beinvolved, and there should be a meeting o f the minds, whenever discussions are heldregarding new product development or any customer-related function of the company.

As Facil is into service industry it offers Business to Business (B2B) services and

Facil offers Payroll services. starts marketin g by identifying customer needs andwants through Market Research and ends with satisfying them through a coordinatedset of activities that also allows a Facil to achieve its own goals, profitably.

Facil strongly follows the basic concepts of marketing i.e. the 4 Ps of marketing.

4.3.2 Customer Relationship

Facil believes in Customer is King Philosophy therefore; the relationship withcustomers is the core part of its business. The positive relationship determineswhether customers will walk in to Facils doors, buy a service, and return in thefuture.


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V Focus on meeting needs

Facil fo cuses upon solving the problems of the customers instead of onlymarketing its service. Facil makes the customer to focus on the core part of its

brand and h elps them to understand how they are going to solve theirproblems.

V Make all interactions as pleasant as possible

Facil b elieves in maintaining a health y, ongoing relationship with its

customers. From the way you and your emplo yees answer the telephon e to theway you handle returns, all customer interactions should be streamlined andmanaged in a way that the customer comes out feeling like a winner. As withhuman relationships, business relationships are developed over time through

positive interaction.

V Create an aesthetically pleasing environment

Facil follows the Studies which have always shown that the public prefersattractive people for both personal and business relationships. While aestheticsarent ever ything, they are a huge part of the overall picture. This means thatcreating clean and attractive spaces, both in ph ysical locations and websites, isa key part of nurturing the customer relationship.

V Put yourself out there

Facil is always in the public eye in a variety o f ways, offering brand-consistentinformation that creates curiosity and encourages its target customer base todevelop a relationship with Facil. Invite the customer to do business with youthrough marketing, including traditional advertising as well as nontraditionalmethods such as social networking and community involvement.

V Touch base frequently

After p roviding the services Facil asks their customers for feedback. It Showsyou care about their satisfaction level speaks volumes about your commitmentto them. It can also provide you with an opportunity to gain insight on other

products and services that you can offer to gain new business. If they have not

done business with you in a while, check to see how you can help them. It mayalso serve as a reminder that they may need your product or service.


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V Pick up the phone

Facil always keeps in touch with customers via phone calls and e-mails. Itis important to call occasionally and to touch base with your customers.Personal interaction is an important element in building a relationship.

V Branch out

Facil always have a particular target market in mind, but to reach it doesn'tmean that it networks with just that group. Facil finds groups that don'tmirror its target mark et and build relationships with their members. That is

the benefit of networking. People you meet kno w people who might befuture customers.

V Write a note

Facil adds the personal touch of a thank you note to show customers yourappreciation for their business is priceless. For the best impact, send itimmediately after the event.

V Be prompt with inquiries

It shows Facils commitment to a high level of service and establishesconfidence in it. Also, if an issue arises, Facil takes action and make it your

priority to resolve it immediately. Sometimes errors and how we resolve

them provide an exceptional opportunity to show our commitment to thecustomer--take a bad situation and make it a positive.

V Listen, listen, listenFacil always searches for a gateway to providing a personal touch to itscustomers. They jot down the very basic details of the customers like

birthdays, anniversary etc. and follow-up call

4.3.3 Sales Force

The Sales Force at Facil plays a key role in the success and failure of Facil. It is theone who plays a pivotal role in achieving the sales targets and ev entually generatesrevenue for Facil.

The Sales Force is always very clear about his role. He should knowwhat he is supposed to do at the workplace.


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Sales Team is responsible for meeting the sales targets of theorganization through effective planning and bud geting.

The Team divides the tasks in a way that it should be delegated as perthe interest and specializations of the individuals.

The team devises strategies and techniques necessary for achieving thesales targets.

Sales team maps potential customers and gener ate leads for Facil andshould look forward to generating new opportunities for the

organization.

Sales team is also responsible for brand promotion. They must makethe product popular amongst the consumers.

Sales team goes on field, meets the clients and gener ates business.They also responsible to maintain customer relationship.

4.3.4 Market Research

Market research is a organized effort to gath er information about markets orcustomers. It is very important component of business strategy. Market research is akey factor to get advantage over competitors. Market research provides importantinformation to identify and analyze th e market need, market size and competition.


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4.3.4.1 Collection of Primary Data Collection of Primary Data

Facil performs the market research through Management Trainees and Facil performs the market research through Management

Trainees and Facil performs the market research through Management Trainees andMBA interns. They collects the data through: interns. They collects the data through:

Interviews Interviews (either b y telephone or face-to-face)

Surveys (online or by mail) Surveys (online or by mail)

Questionnaires (online or b y mail) Questionnaires (online or b y mail)

Focus groups gathering a sampling of potential clients or customers and Focus groups gathering a sampling of potential clients orcustomers and Focus groups gathering a sampling of potential clients or customers and

getting their direct feedback getting their direct feedback


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Some important questions

What factors do you consider when purchasing this service? What do you like or dislike about current services currently on the

market?What areas would you suggest fo r improvement? What is the appropriate price for a service?

4.3.5 Potential Customers

4.3.5.1 IDENTIFICATION

Facil asks its existing client base. They know the company; Facilcommunicates with them regularly to learn about their social networks forfuture referral possibilities. They collect feedbacks with questionnaires orat meet ups to refine their current offerings and sharpen new clienttargeting.

Facil researches market's customer demographics, lifestyle, values andmindset. By using local resources; regional newspapers, census data,trade publications, Chamber of Commerce reports and industry white

papers to gain market knowledge.

4.3.5.2 UPDATES

Facil keeps it clients always updated with its new services and offers.They believe in serving a client in way they themselves want to be servedmeans providing better and efficient services. So Facil always keeps atouch with its clients and keep them updated throu gh phone calls, e-mails,face-to-face meetings etc.


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4.4.1 General Information

Human resource management is one of the most complex and challenging fields ofendeavor. It is considered to be the most expensive and important resource of ever yorganization.

Human Resource capability remains a key source of the Companys competitiveadvantage. The Company continues to place emphasis on enhancement of skills andcapabilities of its people for meeting futur e challenges.

The key areas of human resource developments are training, competency

development and skill enhancement. The Company continues to implement bestpractices and innovative initiatives to meet the challenges in acquiring and retainingtalent against intense co mpetitive pressures.As the Company takes on projects with higher complex ities and expands its

business, the need to reinforce the human resource capabilities becomes morecritical.

4.4.2 Objectives

V To maintain the optimum manpower required to sustain the growth ofOrganization.

V V To motivate and manage human resource and train them to ensure their personal V

and organizational development.4.4.3 Functions of HR Department

Organizational human resource plannin g & development Recruitment & selection Wage & Salary administration Employee records maintaining Performance app raisal Welfare pro gramme Job evaluation Handling employee grievances Handling the legal issues within & outside the Organization


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4.4.4 Process of HR Department

The human resource department has 3 blocks which are:

Establishment Industrial relation Welfare

4.4.4.1 Establishment Section

The main functions are:

Recruitment & selection

Transfer, rotation and placement of employees in consultation withdivisional heads

Wage and salary administration

Performance Appraisal

Retrenchment

4.4.4.2 Industrial Relation

Industrial relation operates only within the Organization. The Interorganizational relation is handled by the corporate cad re. 60 to 70 % ofmanagement time is lost in resolving IR issues. Therefore the H.Rdepartment is of paramo unt importance.The main functions are:

Communication between management and trade u nions

Grievance handling

Settlement of dispute

Handling disciplinary action

Safeguardin g Emplo yee rights


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Career related issues like promotion, transfer & rotation

Resolving daily petty issues

4.4.4.3 Welfare

Welfare schemes can be divided into Statutory, Agreement, Voluntar y andIn centives The main objective of welfare measures is to maintain health yworking environment and raise the standards of living of employees whichcreate harmony to the society and finally to the organization. Facil has

always maintained ver y healthy measur es.

Following are the various facilities provided b y Facil to their Employees.V Statutory and Agreement scheme

Health, saf ety, welfare

Transport facilities

Leave & holidays

Local trav el ex penditure

Conveyance Allowances

Payment of gratuity Act, 1972

Employees welfare fund

V Voluntary Scheme and Incentives scheme

Production incentives & Business incentives

In centives for employees & Suggestion scheme


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4.4.5 Talent Acquisition

Talent acquisition is the targeted recruitment/acquisition of high performing teams.Organizations requiring ex ternal recruitment or head-hunting firms are nowemploying "talent acquisition" specialists whose job it is to identif y approach andrecruit top per forming teams from competitors. This role is a highly specialised roleakin to that of a traditional recruiter/h eadhunter specialist but carr ying greatervisibility and strategic importance to a business.4.4.5.1 Talent Acquisition Process

Identify vacancy

Prepare job description and person specification

Advertising the vacancy

Managing the response

Short-listing

Arrange interviews

Conducting interview and decision making


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4.4.5.2 Sources of Recruitment Sources of Recruitment

V Educational Institutes Educational Institutes

Various management institutes are a good Various management institutes are a good source of recru source of recruitingforFacil. They provide facilities for campus interviews and placements. . They provide facilities for campus interviews and

placements. . They provide facilities for campus interviews and placements.

This source is known as Campus Recruitment. This source is known as Campus Recruitment. The major sour ces of Themajor sour ces ofcampus recruitment for Facil are: campus recruitment for Facil are:


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V Internet Recruitment Services

The Internet has revolutionised the recruitment world, drasticallychanging the way companies and recruitment agencies look for qualitytalent. The Internet is probably one of the greatest recruitmentresources available to Recruiters. Facil is recruiting on theWeb whether through:

4.4.6 Training and Development

The principal objective of training and development division is to make sure theavailability of a skilled and willing workforce to an organization. As Facil is astartup it focuses much o n training the emplo yees so that they can effectiv ely workon the mission and vision of the organization.

In addition to that, there are four other objectives: Individual, Organizational,Functional, and Societal.

Individual Objectives V help employees in achieving their personal goals,which in turn, enhances the individual contribution to an organization.

Organizational Objectives V assist the organization with its primary

objective b y bringing ind ividual effectiveness.

Functional Objectives V maintain the departments contribution at a levelsuitable to the organizations needs.

Societal Objectives ensure that an organization is ethically and socially Vresponsible to the needs and challenges of the society.


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4.4.7 Performance Performance Appraisal

A performance appraisal performance appraisal or performance evaluation is a systematic and periodic is a systematic and periodicprocess that assesses an individual employees job performance and productivity in process that assesses an individual employees jobperformance and productivity in process that assesses an individual employees job performance and productivity inrelation to certain p re relation to certain p re-established criteria and or ganizational objectives established criteria and or ganizationalobjectives.

Facil has adopted 360 degree performance appraisal method which is the most Facil has adopted 360 degree performance appraisalmethod which is the most Facil has adopted 360 degree performance appraisal method which is the mostcomprehensive appraisal where feedback about the emplo yees performance comes comprehensive appraisal where feedback aboutthe emplo yees performance comes comprehensive appraisal where feedback about the emplo yees performance comes

from all the sources that comes in contact with the emp from all the sources that comes in contact with the employee on his job. loyee on hisjob.


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4.4.8 Grievances

Grievance is all about violation of the contract, practices, rules and regulations. Ashuman beings are different there is bound to be grievances among employeesleading to conflicts at the workplace. To avert any kind of conflicts within theorganization, there is need for a proper grievance procedure so that the employeesfeel that their grievances are addressed and redressed.4.4.8.1 Grievance Handling

Id entify the grievan ce and acknowledge the same. Listen carefully to thecomplainant. Define the griev ance clearly. Gather the complete information

with facts and figures. Analyze and search for multiple solutions to thegrievance and finally select the best feasible and possible solution andimplement the same. Ensure that there is follow-up at each stage forsuccessful grievance pro cedure.

Prescriptions during Grievance Procedure:

If you are not the appropriate person, refer to the right person. Spend adequate time with the complainant. Be cool and composed d uring the process. Check for facts and figur e rather than hearsay. Practice attentive listening skills. Find out what bugs the complainant. Dont have an y preconceived notions about the involved parties.

Dont threaten people. Always try to settle the grievance at the lower level amicably rather

than dragging to the higher levels where it might become morecomplicated.

Conduct the grievance hearing privately. Make necessary changes, if there are any irregularities in policies

and procedures. Keep the entire grievance process confidential. Always make the process win-win situation.


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4.4.9 Employee Motivation

Motivation is a set of forces that dir ects an individual to the behavior that resultsin better job performance. A motivated employee might work harder than expectedto complete the task, proactively find ways to improve the quality and efficiency ofthe work environment.

Level 1: Safety and Security

Along with a ph ysical sense of well-being, there must be a psychologicalbelief that the environment is free of fear, intimidation or harassment.Level 2: Rewards

Many organizations offers cash and kind rewards to the employees on theirperformances. This helps them to keep their performance in a growing stage.Level 3: Affiliation

This is a sense of belonging. It includes being "in the know" and being part ofthe team. This is also where a differen ce in personal and organizational valuescan have a big impact on motivation.Level 4: Growth

Employees want to have the belief that achievement is taking place. I mightfeel safe, get all the money I want and feel part of the team. But if there are nogrowth opportunities, I might think about leaving the compan y.Level 5: Work/Life Harmony

This term speaks for itself. Someone might have all the rewards that he/shewants, but he/she will burn out sooner or later if they don't have the time tospend it on the other things they want.Level 6: Fun Activities

Facil organizes the fun activities to motivate the employees and make them tolearn the things along with learning. Quiz, Team Building Games etc


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4.5.1 General Information General Information

The IT department in The IT department in the organization is like a back bone of the organization. It the organization is like aback bone of the organization. Itserves all the back end operations and helps all the departments and organization to serves all the back end operations and helps allthe departments and organization to serves all the back end operations and helps all the departments and organization toachieve th eir goals.

The role of IT department department in the organizations is to deal with all of the issues in the organizations is to deal with allof the issuesregardin g the technology. The three major functions in an organization are Finance, g the technology. The three major functions in

an organization are Finance, g the technology. The three major functions in an organization are Finance,product and marketin g. Today because of the advancements in the technology product and marketin g. Today because of theadvancements in the technology product and marketin g. Today because of the advancements in the technologycompanies hav e Information companies hav e Information Technology Departments. The aim of IT of IT department isto provide technological support to the whole or ganization wherever needed. to provide technological support to the whole organization wherever needed. to provide technological support to the whole or ganization wherever needed.IT department also keeps on searchin g new tools and software which may enh ance also keeps on searchin g new tools andsoftware which may enh ance also keeps on searchin g new tools and software which may enh ancethe efficiency of the organization. In addition, whenever the company faces the efficiency of the organization. In addition,whenever the company faces the efficiency of the organization. In addition, whenever the company facestechnological issues then IT technological issues then IT department is responsible to solve the problems solve the problems.

4.5.2Support Of IT T Department To Other Departments Department To Other Departments

4.5.2.1 Marketing Department Marketing Department

Marketing professional always looks for the way to do something Marketing professional always looks for the way to dosomething Marketing professional always looks for the way to do something

amazing to impress th e clients, to get the job done faster and to grow amazing to impress th e clients, to get the jobdone faster and to grow amazing to impress th e clients, to get the job done faster and to grow

the business. the business.


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Facils IT department helps the marketing professional to make

effective presentations to present to the client.

The IT department also helps them to perform the market researchthrough web surveys. It saves lots of time and helps to analyze thecurrent scenario of the market.

The various IT tools also help to understand the consumer behavior,customer preference and taste through past records which will be keptsafely only with IT department.

Each and every detail about the client will be kept safely for futurecontact and to build relation with the customers.

IT department also helps to market the organizations services throughonline and save cost.

4.5.2.2 Finance Department

Information technology plays a key role in the Finance DepartmentsV Harmonize Financial Processes

As the role of financial information technology should be to support

financial processes, the first crucial action is to standardize financialprocesses across the or ganization. It minimizes the number of charteredaccounts or global entities, and harmonize financial processes.

V Automation, Automation and Automation

The key activity for Finance Departments looking to control costs isautomation. The finance departments are starting to reverse the trend fortransactional process . Tools such as these help Finance Departmentsdigitize the whole financial process, from e-invoicing to paymentallocation, with the so-called three-way match (invoice, PO and receipt).Through automation the whole process is sped up and errors such asduplicate payments are virtually eliminated.

Ultimately the system will give the finance organization more control,

such as through enforcing budget checking, so that users are warnedabout going over bud get before ordering. It will also allow companies tostandardize on suppliers and gain economies of scale by channelingusers towards approved suppliers.


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V Trading

Financial trading is enhanced with information technology. Somecomputer systems even trade for the users. A system is programmed toenter buy and sell orders when the price of a stock or bond reaches acertain level, and automatically closes the order when the target price orthe stop-loss is reached. C omputer based trading is useful when a traderhas a system that allows profitable tr ading and does not want to entereach order individually. Information technology provides instantinformation for stock traders to make decisions, and allows them toenter ord ers that are immediately executed.

4.5.2.3 Production Department

Facil offers payroll services so the IT departmen t play very crucial role inthe production of the service. The overall produ ction of Facil is dependsupon the IT department. The IT department helps to generate the business b ymaintaining the payrolls of the clients. The IT services saves time whichresults to improved productivity.

4.5.2.4 Human Resources Department

It is important to look forward for the changing trends in technology whichcan have an impact on the HR practices. Understanding these changes willhelp smart managers to adapt and flourish. Once you exploit these changin gtrends, you can ver y well have the advantage over other players in the

global market. The wide range of impact of technology on HR can beclearly viewed on the HR functions such as:

Recruitment Training & development Performance management Payroll & attendance records Employee benefits etc

In case of Recruitment, IT has a highly positive impact. E-recruitment is theuse of technology or web based tools to support the recruitment process.The major ways of r ecruitment, which companies commonly use are b ydisplayin g the career opportunities on their websites, depending on the job

portals for making the potential hires and using social networkin g sites

(SNS) for getting the d atabase. The major advantages of this e-recruitmentare:

Economical way to publish job openings Greater reach


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An easy tool to get connected to people with niche skills Speeds up the recruitment process (faster posting of jobs, quicker

applicant response, and rapid hiring). 24*7 access to the online resumes.

V Virtual Organization

Virtual organization is the network of companies or employees connected b ycomputers. Virtual workers can work from wherever they want, from home,car or abroad. Human resource department has significant role in virtualorganizations. As the employee in a virtual organization doesnt meet face to

face, it is the HR managers responsibility to create a psychologicalconnection between various units and their work ers. HR department has totake care of the alignment of the organizations vision, mission and goalwith the workers objectives. Finding potential hires with the requisite skillsfor the virtual organization become another challenge for the HRdepartment. Creating a feeling of belongingn ess among the workers and

managers can help in meeting their responsibilities in an effective way.


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5.1 SWOT ANALYSIS

SWOT analysis (alternately SLOT analysis) is a strategic planning method used toevaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involvedin a project or in a business.

SWOT Analysis of Facil

full company study

Documents