HR Practices at HUL


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HR Practices at HUL

  1. 1. A PROJECT ON HR PRACTICES OF HINDUSTAN UNILEVER AT SUBMITED BY: SUBMITED TO: Desai Madhav Ashutosh Dr. Bhavna Jaiswal Section –H Human Resource faculty, 13BSPHH010941 IBS, Hyderabad. Seat No. 45 1
  2. 2. TABLE OF CONTENT CHAPTER NO. TITLES PAGE NO. 1 Executive Summary 3 2 Company Profile 4 3 Introduction to HR Practice of HUL 5 4 HR Practices 6 Recruitment & Selection 7 Performance Management 11 Training & Career Development 14 Talent Management 17 Compensation 19 Employee Engagement 20 REFERENCES 21 5 2
  3. 3. EXECUTIVE SUMMERY The importance of personnel management is being increasingly realized in industrial and nonindustrial organization both in India and abroad. The realization has come about because of increasing complexity of the task of managers and administrators. In most organizations the problems of getting the competent and relevant people, retaining them, keeping up their motivation and morale, and helping them to both continuously grow and contribute their best to the organizations, are now viewed as the most critical problems. So with this reference the project titled Study of Study of HR practices & process of Performance Appraisal has been conducted, based on the primary research in HUL’s sales and production Division has been prepared to get a better insight into the management practices adopted by HUL with reference to HR Policies prepared by the HR department in organization. It emphasizes on the importance of a clear cut organization structure and culture to avoid any confusion in order to achieve maximum result with minimum resources. The project is aimed to cover maximum knowledge of the HR practices followed in the organization and how the performance is evaluated of employees, what primary factors are considered, how data is maintained and finally the evaluation done. Here the HR practices of the company have been explained to understand how the company follows these practices and the performance appraisal process adopted. The practical knowledge has been gained mainly by observing all the activities taking place in the H.R. department. This is a brief study done to have understanding of the subject H.R., how it is practically implemented, why it is necessary, its implications & the benefits. With reference to the HR Practices brief knowledge has been gained how the Recruitment cycle functions, Selection done, Training Calendar prepared, what does compensation & cost to company means and the steps of performance appraisal. 3
  4. 4. COMPANY PROFILE Hindustan Unilever (HUL) is the largest fast moving consumer goods (FMCG) company, a leader in home & personal care products and foods & beverages. HUL's brands are spread across 20 distinct consumer categories, touching lives of every 2 out of 3 Indian. It has employee strength over 15000 & 1200 managers. It has created widespread network through its 2000 suppliers & associates. There 75 manufacturing locations in India itself. It caters its wide range of products to 6.3million outlets. It has market capitalization of 11.5billion BRANDS: Home & personal care: - Under this it has brands that cater to every income segment of population. In this segment it has brands like Lakme, Axe, Pepsodent, Surf Excel, Wheel, Lux, Dove, Fair & Lovely & many more. Foods & Beverages:-Under this segment it has brand like Kissan, Knnor Soups, Annapurna, Kwality Walls, Brooke Bond and Lipton. It has also launch water purifier with the name Pureit. The FMCG market is set to treble from $11.6 billion in 2003 to $33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash, etc in India is low indicating the untapped market potential. Companies present in FMCG segment like HUL, Dabur, ITC, Godrej & many more have potential to acquire market share. 4
  5. 5. INTRODUCTION TO HR PRACTICE HR PRECTICE The success of any business depends as much on appropriate, effective, well-communicated, HR and business practices as it depends on meeting the requirements of mandated laws and regulations. In fact, good planning and the development of effective practices make regulatory compliance much easier. HR practices helps in increasing the productivity and quality, and to gain the competitive advantage of a workforce strategically aligned with the organization’s goals and objectives. OBJECTIVE OF HR PRECTICE The main objective of HR Practices is to differentiate the organization from its competitors by effective and efficient HR Practices. By following this, the organization does its whole work process. The objective of HR Practices is to increase productivity and quality, and to gain the competitive advantage of a workforce strategically aligned with the organization’s goals and objectives. As the transparent HR practices can reduce attrition, because Transparent HR practices ensure continuous business growth in every organization. It gives the suitable working environment to the employees. The success of company motivates the employees of organization to continue relationship with it. As all the employees Perks chart has been mentioned according to their designation in the HR practices, it helps the employees to know what their perks charts are. So it creates a transparency. 5
  6. 6. HR PRACTICES OF HINDUSTAN UNILEVER Effective and Efficient HR practices are very much important for every organization. So, HUL has also its HR Practices, which helps it a lot to achieve the targets. Human Resource Management initiatives in any Organization endeavor to change, redefine, revisit, renew, reinvent, revitalize & restructure the Organization architecture. This is effectively done with the help of alignment & integration of HR policies & strategies with business goal & objectives. The HR Practices of HUL are as follow:  Recruitment and Selection  Performance Management  Training & Carrier Development  Compensation  Employee Engagement 6
  7. 7. RECRUITMENT AND SELECTION RECRUITMENT It is a process to discover the sources of manpower to meet the requirements of the staffing schedules and to employ the effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient workforce. Edwin B. Flippo has defined it as “The process of searching for prospective employees and stimulating them to apply for jobs in the organization. “ PROCESS:• Finding out the requirement (hiring vs. exit), upcoming vacancies, kind of employees needed. • Developing suitable techniques to attract suitable candidates. • Stimulating as many candidates as possible. FACTORS AFFECTING RECRUITMENT:INTERNAL FACTORS EXTERNAL FACTORS Employer’s brand Socio-economic factors Company’s pay package Supply & Demand factors Quality of work life Employment Rate Organisation culture Labour market conditions Career planning & growth Political, Legal, Governmental factors Company’s size 7
  8. 8. SOURCES OF RECRUITMENT:INTERNAL SOURCES EXTERNAL SOURCES Present employees Campus Recruitment Retired employees Private employment consultant Dependent of present Data Banks Employee Referrals Casual Applicants Trade Unions Walk-ins Head Hunting Mergers & Acquisitions E-Recruitment It helps in translating Business Strategy into people requirements. A combination of internal recruitment, campus recruitment, and executive search is leveraged to meet up to the changing needs of the organization. In today’s rapidly changing business environment, organizations have to respond quickly to requirements for people. Hence, it is important to have a well-defined recruitment policy in place, which can be executed effectively to get the best fits for the vacant positions. SELECTION:It is one area where the interference of external factors is minimal. Hence the HR department can use its discretion in framing its selection policy and using various selection tools for the best result. 8
  9. 9. Recruitment of staff should be preceded by: An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to determine their essential factors) written into a job description so that the selectors know what physical and mental characteristics applicants must possess, what qualities and attitudes are desirable and what characteristics are a decided disadvantage. Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by probable years of service) hence bad buys can be very expensive. For that reason some firms (and some firms for particular jobs) use external expert consultants for recruitment and selection. Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations from existing employers to the recruiting employer. However, the 'cost' of poor selection is such that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to judge the suitability of applicants. Outsourcing is also done through consultancies by mentioning the requirement, number and time. Where the organization does its own printed advertising it is useful if it has some identifying logo as its trade mark for rapid attraction and it must take care not to offend the sex, race, etc. antidiscrimination legislation either directly or indirectly. The form on which the applicant is to apply (personal appearance, letter of application, completion of a form) will vary according to the posts vacant and numbers to be recruited. Interviewing can be carried out by individuals (e.g. supervisor or departmental manager), by panels of interviewers or in the form of sequential interviews by different experts and can vary from a five minute 'chat' to a process of several days. Ultimately personal skills in judgment are probably the most important. Training in interviewing and in appraising candidates is clearly essential to good recruitment. Largely the former consists of teaching interviewers how to draw out the interviewee and the latter how to rate the candidates. For consistency (and as an aid to checking that) rating often consists of scoring candidates for experience, knowledge, physical/mental capabilities, intellectual levels, motivation, prospective potential, leadership abilities etc. (according to the needs of the post). 9
  10. 10. The Recruitment and selection process of HUL:- The recruitment process of HUL Ltd starts from the requirement of different departments as per to the org chart. Then they tell to the HR Department. HR Department takes the candidates from Data bank of company, Poornata etc, then does the short-listing, then does the scheduling for the interview. After this the selection and negotiation process occurs. Then offer letter is been given to the selected candidate. The employee then joins in the organization. Then the company arranges the Induction Program for the employee. After this the recruitment process ends with this. 10
  11. 11. PERFORMANCE MANAGEMENT It is a structured method of formally and objectively evaluating employees’ performance with respect to their objectives. It addresses the issue of an employee’s development by providing them with structured and in-depth analysis of strengths and areas of improvement. It provides with input for annual increments, training and development. For an organization the aim should not be just to have the best people, but also to retain them and get best out of them. Employee Performance management includes planning work and setting expectations, developing the capacity to perform, continuously monitoring performance and evaluating it. Most organizations focus on an annual evaluation process for employees and call that Performance Management. However, annual evaluations are often subjective and can lack specific measurements and supportive data to help the employee truly improve their behaviour. Simply putting, a Performance Management System is essential to the success of any organization because it influences the effort expended by employees, which in turn, drives bottom-line business results. Furthermore, the Performance Management System helps an organization identify, recruit, motivate, and retain key employees. An effective Performance Management System should achieve the following:• Review the employment cycle of every employee, • Beginning with the recruiting process, • Employee development, • Ending with effective exit interviews. • Employee’s knowledge, skills, and abilities with the organization's human capital needs and business objectives. • Provide managers and employees with the tools necessary to focus on short-term and long-term goals that contribute to both career and organizational success. 11
  12. 12. PURPOSE: For Administration• Document HR decisions with regards to performance & its related issues. • Determine promotion of employees. • Determine increment in pay of employees. • Determine transfer & change in job assignments. • Determine retention or termination. • Decide on layoffs. • Decide need for training • Decide salary & related issues. For Development• Provide performance feedback to all concerned. • Identify individual skills, core competencies, strength & weaknesses. • Assist employees in setting goals. • Identify training needs. • Improve communication. Method employed:• 360 degree performance appraisal. Mechanisms like 360 degree feedback provide feedback from superiors, peer groups and subordinates to provide holistic and objective evaluation of the employees. Assessment on their potential is communicated transparently to all employees individually and career paths are shared with them. • Management by Objectives (MBO). MBO is a process whereby superior & subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibilities in terms of results expected of him & use these measures of guides for operating the unit & assessing the contribution of its members. The MBO focuses attention on participative set goals that are 12
  13. 13. tangible, verifiable & measurable. The superior & subordinates jointly determine goals to be considered during appraisal period & what level of performance is necessary for subordinates to satisfactorily achieve specific goals. During performance appraisal period the superior & subordinates update & alter goals as necessary due to changes in business environment. If not achieved identify reasons for deviation. SYSTEM of Performance Appraisal –  Establish Performance Standard.  Communicate standard & expectation to employees.  Measure actual performance by following instructions.  Adjust actual performance due to environment influence.  Compare actual performance with set standards & find out deviations.  Suggest changes in job analysis & standards if necessary.  Follow up. PROBLEMS Rating biases-  Halo effect  Error of central tendency.  Personal Prejudice.  Regency effect. Mainly the performance management of HUL is done by online system includes the following basic processes 1. Annual goal setting 2. Mid-year review 3. Annual performance review 13
  14. 14. TRAINING AND DEVELOPMENT The needs of individual are objectively identified & necessary interventions are planned for identified groups, which get rolled out in a phased manner through training calendar. The training and development program is charted out to cover the number of trainees, existing staff. The programs also cover the identification of resource personnel for conducting development program, frequency of training and development programs and budget allocation. Training and development programs can also be designed depending upon job requirement and analysis. Selection of trainees is also facilitated by job analysis. The company has a strong focus on manpower training according to their requirements. The internal training department aims at improving the skill sets relevant to the work profile of employees. This includes improving communication, Different skills, E-mail programming, Operation systems. The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clears what goal has to be achieved by the end of training program i.e. what the trainees are expected to be able to do at the end of their training. Training objectives assist trainers to design the training program. Training Design:The trainer – Before starting a training program, a trainer analyses his technical, interpersonal, judgmental skills in order to deliver quality content to trainers. The trainees – A good training design requires close scrutiny of the trainees and their profiles. Age, experience, needs and expectations of the trainees are some of the important factors that affect training design. Training climate – A good training climate comprises of ambience, tone, and feelings, positive perception for training program, etc. 14
  15. 15. Trainees’ learning style – The learning style, age, experience, educational background of trainees must be kept in mind in order to get the right pitch to the design of the program. Training strategies – Once the training objective has been identified, the trainer translates it into specific training areas and modules. The trainer prepares the priority list of about what must be included, what could be included. Training topics – After formulating a strategy, trainer decides upon the content to be delivered. Trainers break the content into headings, topics and ad modules. These topics and modules are then classified into information, knowledge, skills, and attitudes. Sequence the contents – Contents are then sequenced in a following manner: • From simple to complex • Topics are arranged in terms of their relative importance • From known to unknown • From specific to general • Dependent relationship Training tactics – Once the objectives and the strategy of the training program becomes clear, trainer comes in the position to select most appropriate tactics or methods or techniques. The method selection depends on the following factors: • Trainees’ background • Time allocated • Style preference of trainer • Level of competence of trainer • Availability of facilities and resources, etc. Meaning of training & development according to HUL: The need for Training and Development is determined by the employee’s performance deficiency, computed as follows. Training & Development Need = Standard Performance – Actual Performance. 15
  16. 16. Training: Training refers to the process of imparting specific skills. An employee undergoing training is presumed to have had some formal education. No training program is complete without an element of education. Hence we can say that Training is offered to operatives. Development: Development means those learning opportunities designed to help employees to grow. Development is not primarily skills oriented. Instead it provides the general knowledge and attitudes, which will be helpful to employers in higher positions. Efforts towards development often depend on personal drive and ambition. Development activities such as those supplied by management development programs are generally voluntary in nature. Development provides knowledge about business environment, management principles and techniques, human relations, specific industry analysis and the like is useful for better management of a company. The Training Inputs are:• Skills • Education • Development • Ethics • Problem Solving Skills • Decision Making • Attitudinal Changes Carrier Development:Hindustan Unilever provided both vertical and lateral growth prospects for its employees in all the business units present in India. India was one of few countries where all the different business divisions – Research, Development, Testing, Consulting, Sales & Marketing, and Support – had a significant presence. Employees could move between the business units according to their areas of interest. Moreover, employees were provided with exposure to different business units by way of mentoring from senior employees of Unilever. 16
  17. 17. TALENT MANAGEMENT It is a holistic and systematic process, across the group. It is built on the work done so far on people processes, and has a Talent Identification and Talent Development Strategy for all the 3 levels of management i.e. Senior, Middle & Junior Management. This is facilitated by Development Assessment Center followed by Individual Development Plan, enabling planned succession and career management. The talent management process includes HR process for:• Recruitment, • Performance, • Compensation, • Succession planning, 17
  18. 18. • Learning and other capabilities around self-service, • Analytics. • Reporting. With businesses going global and competition becoming intense, there is mounting pressure on organizations to deliver more and better than before. Organizations therefore need to be able to develop and deploy people who can articulate the passion and vision of the organization and make teams with the energy to perform at much higher levels. Talent management is a key business process and like any business process takes inputs and generates output. Talent management is a professional term that gained popularity in the late 1990s. It refers to the process of developing and fostering new workers through on boarding, developing and keeping current workers and attracting highly skilled workers to work for your company. Talent management in this context does not refer to the management of entertainers. Companies that are engaged in talent management (human capital management) are strategic and deliberate in how they source, attract, select, train, develop, promote, and move employees through the organization. This term also incorporates how companies drive performance at the individual level (performance management). The term talent management means different things to different people. • To some it is about the management of high-worth individuals or “the talented”. • To others it is about how talent is managed generally - i.e. on the assumption that all people have talent which should be identified and liberated. Talent management decisions are often driven by a set of organizational core competencies as well as position-specific competencies. The competency set may include knowledge, skills, experience, and personal traits (demonstrated through defined behaviours). 18
  19. 19. COMPENSATION Hindustan Unilever offers compensation packages on par or higher than the industry standards based on the technical skills and experience of the candidates. Employee benefits were standardized across employees. The benefit schemes were re-evaluated twice a year. The benefit programs included:  Medical benefits that were aimed keeping the employees healthy and motivated, so as to reach expected productivity levels.  Tuition assistance programs which included financial assistance to meet tuition expenses for all employees. This gave them the opportunity to continue their formal education while working.  A range of professional counseling and support services for employees and eligible family members  Facilitation for employees to relocate if transferred to help them settle easily in the new location  Assistance programs in case of emergency for employees and their eligible dependents travelling on company work to locations worldwide.  Company stock offers to the employees to enable them to share the benefits of the company’s performance. 19
  20. 20. EMPLOYEE ENGAGEMENT Employee engagement is the measure of how involved and committed the workers are towards their organization and values. A well engaged employee is well aware of the day to day happenings of the organization and work with his or her fellow colleagues to improve the performance of the individual and work s towards the betterment of the organization. It is an optimistic attitude that the employees hold towards their organization. Employee engagement is how the employee feels about his workplace employee feels about his workplace and whether he or she is satisfied with the work or not. It is also concerned with the emotions of an individual employee, the unique emotional balance of employees and their experience. The employers and their talent of creating conditions that give rise to employee engagement. Communication among employees at all levels in the organization. Engagement assessment: This HR practice plays a crucial role in every organization. Employees who are engaged perform to their full potential, they are motivated and can also improve their skills as they progress. Employee engagement plays a vital role in the hotel because it affects everything from retention and productivity to profitability and safety. In today’s world organizations have found out various methods of creating competitive advantage. They have created competitive advantage through innovation, quality products, technology and pricing technology. Organizations view “customer service that exceeds expectations” as their key to success. Engaged employees provide quality service. Now there are a numbers of jobs in every industry but organizations need to focus on the right people for the right job. They should also make sure that these right people are satisfied with their work. 20
  21. 21. REFRANCES 1. 2. 3. 4. 5. 21