The document discusses the strategic human resource management practices of Bharat Forge Ltd that have helped it become a global leader in the automotive forging industry. It outlines Bharat Forge's growth from a small plant in Pune to the largest forging company in the world through strategic investments in technology and skilled workforce. It highlights the leadership of Dr. Baba Kalyani and initiatives like apprentice training, leadership development programs, and emphasis on talent retention that have supported its business strategy. The case study examines how strategic HRM has provided a competitive advantage and facilitated Bharat Forge's transformation.

2.  Bharat Forge Ltd : HR mantra for Turbulent IR
weather
( A case study in Strategic HR Practices).
 BY DR. SIBRAM NISONKO, ASSOCIATE PROFESSOR, ASM’s
IBMR,CHINCHWAD,PUNE

3.  Strategic vision is essential to any
organization that seeks to adapt successfully
to the requirements of the future and the
strategic HR imperatives for the present
challenge of transformation are to recruit and
retain quality staff and leader development (
Gordon Sullivan wrote in “America’s Army:
Into the 21st Century”)

4.  1. http://www.pwc.com/gx/en/ceo-
survey/2012/ceo-profiles/baba-kalyani.jhtml
 2. Bharat Forge 3.0: Return of Baba Kalyani
who changed the face of Indian engineering
globally,May 18, 2012 | Priyanka Sangani , ET
Bureau.
 3. http://www.bharatforge.com/

5.  The case Study is related to Implementation
of SHRM and,
 The role of transformational leadership.
 MPM.402: Strategic Human Resources
Management
 MBA (HR)406E: Strategic Human Resources
Management

6. a) It provides detailed insights on the
importance and necessity of SHRM how to
gain competitive advantage through HR,
b) Describes the strategies and functions of
Hr in turbulent time.
c) In particular, it highlights the role of
leadership .

7.  Bharat Forge Limited (BFL) is the India’s
largest manufacturer and exporter of
automotive components,
 From a humble beginning in 1961 with a
small plant in Pune now
 No.1 Indian Exporter of Wheels .
 Largest Forging Company in the world
 No.1 in Engineering Steel in India

8.  Dr.Baba Kalyani is the Chairman of the
Kalyani Group of companies and CMD of
Bharat Forge Limited .
 A business leader of Asia, outstanding
contributor towards trade and industry in the
world and an entrepreneur who made Bharat
Forge a global leader.

9.  The total income: +24% to Rs.63,684 million;
 Operating profits before
interest, taxes, depreciation and amortisation
(PBDITA): +27% to Rs.10,854 million.
 Exports :+42% to Rs. 17,347 million .
 Non-automotive business from India:+ 32%
to Rs. 12,885 million.
 The Company’s non-auto business :38% of
sales in FY 2012, (28% of sales in FY 2009).

10.  In CY 2011 ,the international operations -a
top line growth of 34% to Rs. 28,915 million .
 PBITDA of Rs 1,587 million, a growth of 51%.

11.  With a humble beginning in 1961 as a small
plant in Pune Bharat Forge Ltd , has grown over
the years, to be the second largest auto forging
company, globally the second largest engine
component manufacturer.
 Along with manufacturing forging items and
components for automobiles and commercial
vehicles, the company is also a global leader in
producing components for railways, earth
moving
equipments, hydrocarbons, sugar, steel, coal, shi
p building, oil and gas, refinery and general
engineering equipments.

12.  Today BFL is an indigenous supply source for
some of the products which were largely
imported during post- independence era.
 For first three decades it focused on technology
and quality and carved out a reputation for
reliability realizing that it was not possible to
achieve economies of scale with a relatively low-
technology and low-skilled workforce, it invested
one billion rupees (at the time, turnover was only
1.5 billion rupees) in a sophisticated German-
engineered plant.

13.  It has an enviable buyers list from global automotive
companies like, General
Motors, DaimlerChrysler, Volvo, Mitsubishi
Corporation, Toyota Motor Corporation and Hyundai
Motors. BFL has made a few significant acquisitions
globally to mark its presence.
 BFL has made a few significant acquisitions globally to
mark its presence. Among the list of the acquisitions, Carl
Dan Peddinghaus, CDP Aluminium Technik and Imatra
Kilsta AB are the most significant ones.

 Largest Forging Company in the world
 No.1 in Engineering Steel in India
 No.1 in Axle Aggregates in India

14.  Along with the investment in technology
came an upgrade of manpower.
 Through a combination of attractive
severance packages and attrition a third of
the firm's 1,800-strong workforce was
replaced.
 Today, Bharat Forge employs about 4,000
people, but 80% of them are college
graduates and a third is qualified engineers
, extremely bright, fast and hardworking with
good values.

15.  Through his leadership style Baba Kalyani
has been wielding immense influence to
mentor a generation of business leaders in
India.
 He serves on the Boards of many prestigious
companies and represents industry on several
Industry, Trade and Educational institutions
in India and abroad.

16.  To familiarizes new recruits to the company’s technologies and best
practices and also to identify high potential talent they have started an
Apprentice Training Programme at Pune where new recruits at the
shop floor level are being continuously mentored for 18 months by
a senior engineer or executive.
 They have an arrangement with BITS, Pilani through which employees
can pursue a 3-year part time engineering course.
 Initiated structured ‘Leadership Development’ programs for senior
management as means to create global managers - people who can
operate across borders with confidence, deal with diversity of
cultures, and be highly analytical and result oriented.

17.  It has implemented a comprehensive time and
attendance solution called Krones, which
eliminated more than 6,000 manual leave cards.
 To record time worked, access leave balances,
apply for leave, and view other relevant time and
attendance information BFL employees to access in
the production bay on self-service kiosks
(terminals).
 As a result, employee satisfaction and productivity
went up, since employees no longer needed to
report to the time office to access or record their
information.
 The Kronos implementation empowered managers
to conduct many tasks online, such as viewing and
approving employee timecards, leave cards, OD
cards, and short leave requests.

18.  In response to global customers preference
for suppliers to have technology centers close
to their product development facilities, they
have set up a product design and
engineering facility in Germany. This enabled
them to leverage the high technology skills
available at German operations to deepen
customer relationships and pursue their
quest for global technology leadership.

19.  Mr. Kalyani is actively involved in Pratham Pune
Education Foundation, an NGO providing
primary education to children belonging to under
privileged sections of the local community;
 Steering a unique initiative to empower rural
youth at a Taluka in Pune district by providing
free technical and vocational training at a
government Industrial Training Institute [ITI] that
is being run as a Public-Private partnership.
 BFL is also engaged in developing solar energy
equipments.

20.  Over 980 contract workers, some of them
working with Bharat Forge for over 15 years, have
filed a case saying that they have been laid off
without compensation .
 In April 2008 these workers came together under
the Maharashtra General Kamgar Sangh and
petitioned the labour commissionerate to make
them permanent employees of Bharat Forge on
the grounds that they have been working for
years together in the premises of Bharat
Forge, but without any of the accompanying
benefits.

21.  Some employees are dissatisfied
since increments are negligible .
 A few talented freshers get frustrated
due to slow career growth. HR is not
serious about it.
 “Middle management is not open to
new ideas. They seem to be
hankering after power and control” .

22.  1. To understand concepts of Strategic HR .
 2. To understand Strategic HR process:
goals, methods and techniques ;
 3.To examine how to gain competitive
advantage through HR.
 4.To examine the role of top, middle and
lower level management.
 5. To evolve Strategies to seek cooperation of
all employees.

23.  Group discussion
 Internet resources

24.  How the SHRM strategy has facilitated the
company to become a global leader in auto
forging industry.
 Impact of management philosophy, OD strategy
to enabling it to become a global leader .
 Focus on the HR model of the company and
glimpses of the employer branding exercises of
Kalyani Group,
 Its unique Leadership style ,
 Its Hr branding,
 The CSR strategy adopted by the company,
 Quality of Work Life, Employee Retention etc.etc.

25.  Identifying environmental opportunity and threats,
 Identifying internal strengths and
weaknesses, Creating need for change,
 Creating a vision for new age,
 Role of CEO to translate vision into projects,
 Innovation management;
 Employee Relations skills for Business strategy.

26.  1. Does the Hr policy of the company support
the philosophy that Investment in right
direction is the key for harnessing profit ,not
cost-cutting?
 2.Evaluate the pros and cons of the
leadership in terms of participation of the
middle management and their competencies.
 3.Is the STRATEGIC HR - conducive to the
innovative material technology and global
business strategy?

27. 1. Gordon Sullivan “America’s Army: Into the 21st Century”:
2. Arnold Anderson, What Is the Role of Leadership in
Strategic Implementation? Demand Media .
3. Margaret Wheatley, “Turning to One Another”.
4. Barend Jacob, The role of strategic leadership in strategy
implementation,Fourie,
5.Jeffery mellow, Strategic Hrm,Thompson publications,New
Delhi .
6. video clips :Question Time with Baba Kalyani,Bharat Forge
Ltd, Bangalore---hybiz.tv