Dessertation Best HR practices in the Indian lens Manufacturing Sector


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Dessertation Best HR practices in the Indian lens Manufacturing Sector

  1. 1. INDUS BUSINESS ACADEMY Best HR practices in the Indian lens Manufacturing Sector SUBMITTED TO: PROF. SURESH CHANDRA SUBMITTED BY: CHINMOY MAHAPATRA 3/17/2014 This research has sought to identify the ways in which lens manufacturers in India can manage people in structures that are diverse in terms of geography, cultures and in some cases, strategy. Rapid growth and expansion requires attention to both consistency of approach and flexibility of use and the constant balancing between the need for global standards on one hand and local market sensitivity on the other. The study highlights innovative HR practices that are required to sustain in the Indian lens market.
  2. 2. Best HR practices in the Indian lens Manufacturing Sector 1 DECLARATION I hereby declare that the dissertation titled “BEST HR PRACTICES IN THE INDIAN LENS MANUFACTURING SECTOR” is an original piece of research work carried out under the guidance and supervision Prof. Suresh Chandra (assistant dean-exam IBA). The information collected is from genuine and authentic sources. The work has been submitted in particular fulfillment of the academic requirement of our college Indus Business Academy. PLACE: - BANGALORE SIGNATURE: ……..………………. DATE: 17/03/2014 CHINMOY MAHAPATRA PGDM-2012-2014 FPB1214/032 INDUS BUSINESS ACADEMY
  3. 3. Best HR practices in the Indian lens Manufacturing Sector 2 ACKNOWLEDGMENT I wish to express my indebted gratitude and special thanks to Prof. Suresh Chandra (internal guide / mentor) for his guidance and support. He was a helping hand all the time whenever needed and gave the right direction towards completion of the project. I also express my deepest thanks and pro-founded gratitude to IBA which gave me an opportunity to write the dissertation paper.
  4. 4. Best HR practices in the Indian lens Manufacturing Sector 3 TABLE OF CONTENTS SL NO. CONTENT PAGE NO. 1 Introduction 4 2 Discussion 6 3 Conclusion 11 4 Reference 12
  5. 5. Best HR practices in the Indian lens Manufacturing Sector 4 INTRODUCTION It is estimated that approximately 28% of India’s population requires some kind of vision care. This makes the market size for any type of lens a whopping 310 million individuals. The organized sector (including organized sector imports) accounts for a mere 16% of this market; which means, a mere 50 million people use lenses offered by the organized sector. The remaining is catered to (if at all) by the unorganized sector that includes cottage industry concentrated around large cities and cheap imports from countries like China, Philippines and Thailand. Increasing awareness and penetration is set to fuel the demand for advanced eye care equipment’s. Expansion of eye care centers and up gradation drive at existing government and private hospitals is poised to boost the eye care equipment market in India. Rising level of awareness among the people and advanced diagnostic concepts are fuelling the growth of this segment further. Technological advancements in diagnosis have led to a fast-paced growth in the eye care equipment market. According to statistics published by the world health organization (who) in 2012, India has an estimated 12 million blind people and additional 456 million people who require vision correction. These figures explain the vast opportunity for eye care market in India. Industry statistics suggest that a majority of the organized sector vision care patients, almost to the tune of 98% prefer to use spectacle lenses. Since lenses are normally bought in pairs it translates to a minimum of 98 million spectacle lenses sold every year. Leading global players or manufacturers (also called the “lens casters”) are Essilor, Carl Ziess, Hoya, Bosh & Lomb etc. Essilor being a clear market leader with around 60% market share in the glass lenses category. The remaining are synthetic lenses commonly called CR 39, polycarbonate etc. The latter is growing at the rate of 16% annually while the spectacle lens segment is reaching a plateau. Contact lenses are primarily of two types: the conventional contact lens and the disposable contact lens. The former is used for at least a year while the latter has to be bought at least three to four times a year. Now a-days there are even daily disposable contact lenses but it has a feeble user base. Conventional contact lens buyers are a majority whereas disposable contact lens account for nearly 35% of contact lens users. Contact lenses are also sold in pairs and approximately 5 million of those are sold annually amongst a million users.
  6. 6. Best HR practices in the Indian lens Manufacturing Sector 5 The total size of the organized sector market for lenses in India is estimated at Rs.1500 crores, which includes Rs.100 crores of contact lenses. Considering that India is a country of a billion plus people and with most people normally requiring vision correction beyond 40 this is one complicated and attractive market to consider. Trends: Unlike many other countries, daily disposable lenses continued to be a niche category in India. This is partly due to the high price of such lenses as well as lack of awareness among consumers and even opticians and marketers of these products. Therefore, few customers opt for daily disposable lenses. In such a scenario, the transition continues from traditional lenses to weekly/monthly disposable lenses at a rapid rate, as there is growing awareness that traditional lenses are not good for hygiene purposes. Furthermore, with increasing per capita income, more people can afford weekly/monthly disposable lenses. Competitive landscape: Johnson & Johnson vision care led contact lens account for almost 60% of the market share. This is due to its Acuvue brand, which continues to be the most popular brand in the contact lenses category. Furthermore, the company continues to market this brand aggressively. This brand is even more dominant in daily disposable lenses in which the company holds a 67% value share. Prospects: Traditional lenses continue to decline indicating that consumers will move away from traditional lenses, which are known to be unhygienic. This will be to the advantage of weekly/monthly disposable lenses and daily disposable lenses. However, consumers are unlikely to move away from weekly/monthly disposable lenses to daily disposable lenses due to the latter’s high price. As concerns about hygiene issues increase, demand for products, such as contact lens solution, will also rise. Analyzing all the above factors it is evident that the lens manufacturing sector is poised to grow at a rapid rate. This means that the sector will generate many employment opportunities, as both Indian and foreign companies will compete for market share, attracting huge manpower, which need to be managed efficiently and effectively.
  7. 7. Best HR practices in the Indian lens Manufacturing Sector 6 DISCUSSION Of late, eye care services have become competitive and as the industry is making significant progress it has led to voluntary attrition of manpower across different categories and centers. Apart from assessing reasons for attrition, preventive steps should be taken so that effective functioning of the services is not disrupted. Making detailed assessments of manpower needs scientifically; which helps in its recruitments, training and transfers across all departments. Staffing people in excess numbers in critical services to care for contingencies and offering training programmes to build harmony and commitment among employees; redesigning of support systems, counselling and promoting loyalty are some of the important measures to ensure retention and commitment among employees. The role of HR is significant in all facets of an employee’s life, starting from recruitment to retention; imbibing the right values and culture is the prime responsibility of the HR team. Optimal use of skilled man power; including in house training program and strive to keep the attrition rates minimal. Creating a sense of compassion and commitment among employees, aligning all activities with the organization’s mission and values, focus on core professional competencies with no attached frills are some of the key responsibilities of the HR department. HR managers are the “glue that holds people and the organization together.” The functional areas of HR can be considered ingredients that make the glue work. Functional areas of Human Resource key for an organization’s success Business management and strategy: Human resource professionals need to have an understanding of the business, and appreciate the fact that “business, not HR” is the starting point for HR action. By interpreting internal and external information pertaining to operations, the industry and the market, they should propose strategy and mission-supporting actions to align human capital with organizational needs, guide change and evaluate results.
  8. 8. Best HR practices in the Indian lens Manufacturing Sector 7 Workforce planning and employment: Workforce planning and employment encompasses planning, execution and evaluation tactics for recruitment, interviewing, pre-employment screening, selection, hiring, on-boarding, retention and exits. Keeping in mind all the objectives, goals and talent needs of the organization the HR department should plan for future manpower requirements. Human resource development: Training, career mapping and performance management aspects of human resource development give HR bottom-line influence. Arming the workforce with knowledge and abilities for today’s productivity needs, combined with career development opportunities to address tomorrow’s labor requirements, benefits both the organization and the employees. Guiding workplace performance through coaching and the appraisal process improves communication, enhances employee satisfaction and identifies areas for improvement, all contributing factors to organizational success. Total rewards/ Compensation and benefits: The total rewards area of human resource management is sometimes referred to as compensation and benefits. This aspect of the field focuses on both direct compensation, which refers to wages and bonuses paid to employees, and indirect compensation, which refers to benefits made available to members of the workforce. Payroll processing falls under this function, as doe’s benefits administration. It involves making sure that employees are paid in a manner that is compliant with the fair labor standards act, that payroll taxes are withheld and filed properly, and that benefits enrollment procedures are handled properly. Labor represents a significant expense for any firm. Compensation and benefits programs must support the business strategy to recruit, motivate and keep employees while adhering to employment law and controlling cost. HR management must be adept at designing, implementing and evaluating equitable financial rewards systems and benefit packages. These offerings juggle the management values they communicate with employee perception of individual contributions to the company.
  9. 9. Best HR practices in the Indian lens Manufacturing Sector 8 Employee and labor relations: The employer-employee relationship is critical for human resource management. Like other HR functions, employee and labor relations represents a balancing act. Through initiatives, compliance and collective bargaining, HR strives to create and maintain a cohesive environment where corporate needs, rights and objectives complement workplace conditions and policies that meet employee rights and expectations. Risk management: A secure and safe work environment serves the entire organization. The HR department uses disaster and emergency plans, safety guidelines and training, ergonomically-minded office and equipment selections and security procedures to promote employee well-being. To protect corporate assets, it promotes employee awareness of policies and expectations through ethical standards, codes of conduct, programs, education and communication. Staffing: Staffing involves determining personnel needs, recruiting candidates and screening applicants. Duties may include creating job postings, determining where to advertise open positions, tracking applicant flow data, conducting interviews, and administering and interpreting skill assessments. In some cases, HR personnel make final decisions about which applicant to hire, while in others they narrow down the field to qualified applicants so that supervisors can make the final selection. HR professionals who work in staffing must be knowledgeable about equal employment opportunity requirements so they can ensure that the company’s recruitment process is free from all forms of discrimination. Employee development: The employee development aspect of human resource management is sometimes referred to as the training or workforce development function. It involves identifying areas where skill development is needed, either in terms of specific
  10. 10. Best HR practices in the Indian lens Manufacturing Sector 9 skills or knowledge that a particular individual needs to master or organization- wide training needs. Training needs may be soft skills, like customer service, communication and leadership development, as well as technical skills such as computer skills and equipment operation capabilities. In some cases, HR professionals are responsible for employee development, provide instruction themselves, while in other cases they bring in trainers, send employees out to classes or source online or computer-based training programs that can be used. Employee relations: The employee relations function of human resource management is focused on maintaining positive relations between the organization and members of its workforce. Duties that typically fall under the scope of this function involve morale management, rewards and recognition programs, performance appraisal procedures, verifying compliance with policies and procedures, complaint investigation and labor relations. Employee relations professionals typically work closely with members of the management team, lending support and assistance as needed. Safety: Every company must provide a safe working environment for employees. The safety function ensures that the organization is compliant with occupational safety and health act requirements, as well as any other important safety-related tasks. It includes important functions like developing and enforcing safety policies and procedures, conducting safety audits, overseeing safety meetings and training, dealing with occupational injuries and illnesses, and handling accident reporting requirements. The centrality, of good people management is essential not just among HR professionals, but at all levels of the organisation. Rigorous recruitment and selection procedures; training and development at all levels, developmental appraisal and performance-linked pay, flexible job design, reduced organizational hierarchies; team working; empowerment and two way communications are some of the common features which organizations need to
  11. 11. Best HR practices in the Indian lens Manufacturing Sector 10 possess. Considerable attention should be placed on values-based employment practices and socialization mechanisms within the organization, which will enable prized outcomes of cultural fit among employees, commitment and increased retention. In the HR function, excellence revolves around a small core of strategically-enabled and talented managers supported by e-enabled HR provision and shared service centers to deal with the core administrative processes. The effectiveness of HR is contingent upon the leveraging of human, social, organizational capitals at all levels and sections of the organization. These three capitals, which together come under the umbrella term `intellectual capital', are essential to deliver and support business goals. However, as a function of organization and as a corporate activity, intellectual capital effectiveness is dependent upon skills, resourcing, relationships, informal and formal structures and processes and, perhaps most significantly of all, the meaningful dissemination and capture of practice related knowledge throughout the organization. A crucial element of managing people effectively depends on the sustained engagement of line management. The management of human resources requires that line managers effectively execute the disseminated policy and ‘own’ the process and seek to ensure continuous improvement and alignment with the changing business need at the level of the local organisation. However, experience at the local level would suggest that often a lack of line engagement is responsible for the ineffectual implementation and subsequent operationalization of high performance work systems. More than any other factor, the challenges mentioned above and the ability of the organizations to derive value from either leading or innovative HR practices are determined by the role, strength and quality of the organization’s leadership. Leadership capability therefore, is central to the effective management of human capital, be it leadership in terms of policy determination at design or leadership in terms of the immediate relationship with employee in line functions. It is quality of leadership that is ultimately responsible for ensuring congruence between the various aspects of the organisation, its environment, strategy and structures, and tactically reconciling the inevitable but unforeseen tensions inherent within large complex organization’s as they arise.
  12. 12. Best HR practices in the Indian lens Manufacturing Sector 11 CONCLUSION The work overall has shed new light on how organizations in the lens manufacturing sector can manage people in the Indian context. The implication of the study is that it is not simple enough to adopt 'best practices', or attempt to develop innovative practice in isolation, but organizations must ensure that practice formulation and execution is (a) aligned with the business need at all levels, corporately and locally, and (b) integrated not only with other HR practices, but with the human, social, organizational elements of the organization upon which its effectiveness is dependent. The challenge for HR managers is to develop the necessary competencies and skills to leverage and broker relationships with disparate line management to ensure that HR practices are aligned with the entire scope of the business. Human capital effectiveness is rarely achieved through corporate control or the mandating of practice adoption within the organization, but rather through persuasion, positioning and the education of the value of human capital.