Executive summaryToday, in every organization personnel planning as anactivity is necessary. It is an important part of an...
With reference to this context, this project is been preparedto put a light on Recruitment and Selection process. Thisproj...
3
INTRODUCTION      4
INTRODUCTION OF HUMAN RESOURCE                           MANAGEMENT      Organization exists for people. The behavior and ...
appraisal, research and feedback system, data storage and so on receivinggreater attention to the people at work backed by...
Human Resource Management:      “Human Resource Management is a series of decisions that affect therelationship between th...
involves the main penance of human resources. This includes the issue ofcompensation. Theories of motivation also point ou...
 Recruitment    Selection    Induction and follow up   An effective employment process requires that each of these stag...
Job Analysis:      It consists of defining the job and discovering what the job demandsin terms of employee behavior. Job ...
Recruitment:-      Edwin B. Flippo defined recruitment as “The process of searchingfor the prospective employees and stimu...
External Sources of Recruitment:     There are four main sources   Unsolicited Applications: These are people who have su...
CONSTRAINTS ON RECRUITMENT      Logically, firms would seek to recruit in a manner that guarantees thegreatest number of q...
 Recruiter habits: Recruiter habits many also constitute a recruitment   constraint. For example past successes may lead ...
limitations on the firm. However, it may well also limit the number of      applicants because some very highly qualified ...
Short-listing is the process to which a number of applicants arechosen from the total number of candidates further assessm...
Step 3:    Application forms: The application form is designed to obtain the      information on various aspects of the a...
Step 5.    Selection Interview: - The employment interview is conducted to      learn more about the suitability of peopl...
related questions. Further, the supervisor’s personal commitment to      the success of the new employee is higher if the ...
Induction and orientation      Induction is generally done to acquaint a new employee with theorganization, its objectives...
OBJECTIVES OF THE STUDY      The present study recruitment and selection practices in ITC are madeby keeping the following...
As the people are considered valuable human beings, the everyperspective of management changes, and the people are motivat...
CHAPTER 2METHODOLOGY     23
METHODOLOGY      Methodology is the procedure applied to gather the informationrequired for the study. Collection of the d...
A survey was conducted on the consumer perception of SANGAM   DAIRY information in the survey is being collected from the ...
information. Information regarding Indian milk industry and A.P milkindustry gathered from the secondary sources like inte...
CHAPTER 3INDUSTRY PROFILE       27
TOBACCO INDUSTRY PROFILEBleeding state of cigarette/tobacco industry:-      Tobacco today is the largest contributor to In...
Despite lower production of total produce being exported Indian exports itfigures among top 10 exporters of the product in...
levels owing to excess production. Carryover of previous years stock anddipping demand owing to high pitched protests agai...
brunt of funding the cause. Through 1% levy, which on the first hand hasoccurred due to unauthorized crop? Moreover the no...
loss of export market for Indian permanently and also instead of helpingtobacco farmers is going to do more harm.Woes of t...
India is the third largest producer of tobacco in the world after china andUSA. Through it occupies a mere 0.25 per cent o...
handling capacity of 25000 tones of tobacco we are in a position to meetyour requirements at any time of the year. Our bra...
“ILTD believes in building an enduring relationship with you tocreate a unique competitive advantage that will enable you ...
Talent Management:      ILTD process managers with a wealth of experience, gained overdecades, in crop development, sourci...
Our product quality emanates from our strategy of intimate involvement   with tobacco farmers in India. By collaborating w...
ISO 9002 and ISO 14001 accreditations. We have processing lines at twolocations in the southern state of AP-chirala with 3...
Our processing plant at Chirala is the first unit in India to receive theconnected social accountability standard certific...
employees we value their abilities to create, judge, imagine and buildrelationship and these values drive our people to ac...
 Capable of “Any time, any variety and any quality” delivery of      tobacco in different product forms.    Huge ware ho...
 Valuing ideas of employees and gives employee a space to executive      them.    Keeping all employees well informed, t...
nascent businesses of packaged food and confectionery, Branded appareland greeting cards.         As one of India’s most v...
$2.4 billion in the last decade). The company’s ‘e-couple’ initiative isenabling Indian agriculture significantly enhance ...
expressively captured in its corporate positioning statement. “Enduringvalue for the nation, for the shareholders.History ...
 Though the first six decades of the company’s existence were   primarily devoted to the growth and consolidation of the ...
education, environmental protection and community development. In   2004 ITC acquired the paperboard manufacturing facilit...
operational in three states of Madhya Pradesh, will be launched      shortly.    In 2000, ITC’s packaging and printing bu...
 Continue to focus on the core businesses of cigarettes and tobacco,   hotels, packaging, and paperboard. Ensure that ea...
EMPLOYEE PROFILE      The factory at Chirala is seasonal as the tobacco crop is gorgonspecific at different zones. During ...
work requirements, the compensation package and employee welfare arefinalized in the LTA      Belies, numbering 269, are t...
c) ITC Limited-ILTD Division is equipped with a training center havingnecessary facilities for conducting in-house trainin...
Training needs are identified by concerned department managers onthe basis of appropriate job requirements for each catego...
RECRUITMENT AND SELECTION PRACTICES AT ITCHuman Resource Management at ITC:      HRM practice of ITC is the one among the ...
Functions of Human Resource Management Department:      The HR Department looks after the following functions administrati...
ITC company recruitment and selection practice is similar to that ofthe large organizations. Through these practices the H...
depending upon the manpower recruitment or it may be referred to the   recruitment consultants, for receiving the suitable...
 Educational qualification   Proof of data of Birth   Experience certificate   Relieving letter from the precious orga...
Separations-   Recruitments   Deaths   Resignations   Dismissals   VRS   Transfers out etc.,   Recruitment   Promo...
CHAPTER 4DATA ANALYSIS AND INTERPRETATION        60
Table 1                         Recruiting the employeeS.No       Particulars             No. of. Respondents           Pe...
Graph – 1                   Recruiting the employee             80                    70             70             60    ...
Table 2                             External recruitmentS.No         Particulars            No. of. Respondents    Percent...
External recruitment             70                    60             60             50percentage             40          ...
Recruitment policyS.No          Particulars          No. of. Respondents   Percentage 1. Yes                              ...
120                        100       100        80       e       g       a       t       n 60       e       c       r     ...
1.   Through word of mouth                 10                   10 2.   Notice board                          60          ...
70                                         60             60             50Percentage             40                      ...
S.No       Particulars             No. of. Respondents      Percentage 1. Through adds                             60     ...
70                      60             60             50Percentage             40                                        3...
S.No      Particulars              No. of. Respondents     Percentage 1. Department heads                         20      ...
60                                            50             50             40Percentage                                  ...
S.No          Particulars           No. of. Respondents     Percentage 1.    Internet                               25    ...
35                                 30             30             30                    25             25percentage        ...
S.No          Particulars        No. of. Respondents     Percentage 1.    Quarterly                           10          ...
70                                                             60             60             50Percentage             40  ...
S.No        Particulars          No. of. Respondents       Percentage 1. Satisfied                              70        ...
80                              70             70             60             50Percentage             40                  ...
S.No         Particulars          No. of. Respondents        Percentage 1. Yes                                     90     ...
100                                   90                90                80                70                60  Percenta...
1.   Internet                              10                    10 2.   Through ads                           40         ...
45                                 40           40             40             35             30Percentage             25  ...
S.No         Particulars         No. of. Respondents       Percentage 1. Yes                                    85        ...
90         85             80             70             60Percentage             50             40             30         ...
S.No       Particulars            No. of. Respondents      Percentage 1. Structured                              90       ...
100                      90              90              80              70              60Percentage              50     ...
S.No         Particulars           No. of. Respondents   Percentage 1. Yes                                      -         ...
120                                                     100             100              80Percentage              60     ...
S.No        Particulars      No. of. Respondents         Percentage 1. Preliminary interview              36              ...
40                      36                                 36             35             30                         28    ...
S.No          Particulars           No. of. Respondents       Percentage 1. Yes                                       -   ...
120                                                100             100              80Percentage              60          ...
S.No       Particulars             No. of. Respondents     Percentage 1. Excellent                                20      ...
80                                       70             70             60             50Percentage             40         ...
S.No         Particulars          No. of. Respondents   Percentage 1. Yes                                    100          ...
120                   100             100              80Percentage              60              40              20       ...
S.No       Particulars           No. of. Respondents       Percentage 1. Subject                                25        ...
60                                             55             50             40Percentage             30                  ...
CHAPTER 5  FINDINGS      &SUGGESTIONS     99
FINDINGS1. 10% of the respondents said that the vacancies in the internal   organization are known through word of mouth2....
 Systematic and a common methodology should be opted for recruiting   and selecting the employees. The steps in the proc...
Name………………………………………………………………………Employee No. …………………. Experience…………………………..Designation……………………… Department…………………………1. How...
a)   Department heads                     b) HR Department   c)   Above two7. What are the recruitment sources for top-lev...
13.Which type of interview do you follow for selecting the employees?   a)   Structured                          b) Unstru...
Edited final reportseema kumari 9888546117
Edited final reportseema kumari 9888546117
Edited final reportseema kumari 9888546117
Edited final reportseema kumari 9888546117
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Edited final reportseema kumari 9888546117

  1. 1. Executive summaryToday, in every organization personnel planning as anactivity is necessary. It is an important part of anorganization. Human Resource Planning is a vitalingredient for the success of the organization in the longrun. There are certain ways that are to be followed by everyorganization, which ensures that it has right number andright kind of people, at the right place and right time, sothat organization can achieve its planned objective.The objectives of Human Resource Department are HumanResource Planning, Recruitment and Selection, Trainingand Development, Career planning, Transfer andPromotion, Risk Management, Performance Appraisal andso on. Each objective needs special attention and properplanning and implementation.For every organization it is important to have a right personon a right job. Recruitment and Selection plays a vital rolein this situation. Shortage of skills and the use of newtechnology are putting considerable pressure on howemployers go about Recruiting and Selecting staff. It isrecommended to carry out a strategic analysis ofRecruitment and Selection procedure. 1
  2. 2. With reference to this context, this project is been preparedto put a light on Recruitment and Selection process. Thisproject includes Meaning and Definition of Recruitment andSelection, sources of Recruitment, constraints ofRecruitment Process, and no. of selection tests throughwhich an Organization gets induction and orientationprograms. Need for study, objectives and scope of study.Recruitment and Selection are simultaneous process and areincomplete without each other. They are importantcomponents of the organization and are different from eachother. Since all the aspect needs practical example andexplanation this project includes Recruitment and selectionProcess of ITC. And a practical case study it also containsaddresses of various and top placement consultants and thepricelist of advertisements in the magazine. 2
  3. 3. 3
  4. 4. INTRODUCTION 4
  5. 5. INTRODUCTION OF HUMAN RESOURCE MANAGEMENT Organization exists for people. The behavior and level of performanceof the people will show their effect on the organization. Human resourcemanagement can be defined as that part of management process whichdevelops, and manages the human elements of enterprise considering theresourcefulness of the organization own people in terms of total knowledge,skill, creative, abilities, talents, aptitudes and potentialities for actuatingeffectively. Human Resource Management is the process of managing the peopleof an organization with a human approach. Human Resource approach tomanpower is the most essential an indispensable resource of anyorganization. There is a need to look at the HRD concepts, components andmechanisms more comprehensively and in an integrated way as peoplerelated functions rather than isolate them from personnel functions orindustrial relations aspects. Employee’s participation in management is nolonger an idealistic or ideological conception. It is an imperative need tocope with change in organization. It is in the context of changing profile ofpeople with high expectations and the demands for high performance. Manpower planning is incorporated into human resource planning,recruitment, selection, supervision, such other functions of personnelmanagement from part of HRM, other aspects like human resourcedevelopment, career planning and development, constant efforts for 5
  6. 6. appraisal, research and feedback system, data storage and so on receivinggreater attention to the people at work backed by welfare amenities andcordial industrial relations, policies must also be an integral part of HRM. Inthe HRM approach, personnel function is not merely record keepingfunction. Rather it is a constant endeavor to motivate the people at work tofoster an oneness with the organization and its performance goals. This isachieved neither through pressure tactics nor through conflicts and struggles,but through constant cooperation, team-building and mutual understanding. HRM is concerned with the effective and efficient use of theorganization’s human resources. We need human resources to run ouroperations. Hence, we need to attract and hire the best employees possible.One of the functions of a human resources management departmental is toattract potential employees. Having attracted potential employees, we needto be able to choose the best of these applicants. Furthermore, having hiredemployees, we need to train them if we expect them to function effectively.HRM also involves the maintenance of human resources. This includes theissue of compensation. 6
  7. 7. Human Resource Management: “Human Resource Management is a series of decisions that affect therelationship between the employees and the employers; it affects manyconstituents and is intended to influence the effectiveness of the employeesand employer”. HRM--- effective and efficient use of the organization’s humanresources within most organizations, considerable thought is given to theeffective and efficient use of financial resources. This is called “FinancialManagement” and “Marketing Management” concerns itself with thepromotion and sale of the organization’s products. HRM is concerned with the effective and efficient use of theorganization’s human resources. What kind of human resources (employees)we need? How to procure them? How to select only the best? How to ensurethat the people chosen can do the jobs in the way which is expected them todo? How to measure their effectiveness? Human resource managementmeets all these. Once our employees are functioning effectively, we need to ensurethat they continue to do so; we need to concern ourselves with theirmotivation. In the case of hiring, we need to decide what kind of employeewe’re looking for? When engaged in the selection process, we must decidewhich of the applicants will actually be the best employee? HRM also 7
  8. 8. involves the main penance of human resources. This includes the issue ofcompensation. Theories of motivation also point out employees needs forfeedback therefore; we need to be able to determine when our employees aredoing a good job. There is a need to understand the jobs that our employees areperforming and, to understand their jobs, we need to do a job analysis.Essentially, the job analysis forms the core of the human resourcemanagement function. In doing a job analysis, we are essentially gatheringraw data about the jobs in our organizations. Human Resource Developmenthas been defined as an organized learning experience, conducted in adefinite time period, to increase the possibility of improving jobperformance and growth. RECRUITMENT AND SELECTIONThe Employment Process: On the face of recruitment and selection seem to be a fairly straightforward procedure. Its objectives to place the right people in the right placeto achieve organizational goals. Recruitment and selection are only twoactivities or stages in what can be called the employment process. It can bedivided into five stages  Manpower Planning  Job Analysis 8
  9. 9.  Recruitment  Selection  Induction and follow up An effective employment process requires that each of these stages oractivities must be gone through in an entire and systematic manner. Recruitment and selection allow management to determine andgradually modify the behavioral characteristic and competence of theworkforce.Manpower Planning: Manpower planning enables a department to projectiles short to longterm needs on the basis of its departmental plans. So that it can adjust itsmanpower requirements to meet changing priorities the more changing theenvironment the department.  The number of requirements in a specified timeframe and the availability of talent.  Early indications of potential recruitment or retention difficulties  Availability of suitable qualified and experienced successors. 9
  10. 10. Job Analysis: It consists of defining the job and discovering what the job demandsin terms of employee behavior. Job analysis forms the basis of a number ofpersonnel activities such as job evaluation, job design, and performance.Appraisal with regard to the employment process and recruitment andselection in particular job analysis clarifies the duties and responsibilities ofa job, the knowledge, skills and expertise required to undertake it.First Way: You ask the employees to prepare their own job description.Second Way: Ask the manager or supervisor of the employee to prepare ajob description.Third Way: Employ a trained job analyst and interviews the employees. In any job description/job specification there are five key areas:  Job title  Job Purpose  Key results area  Who the employee reports to  Responsibilities 10
  11. 11. Recruitment:- Edwin B. Flippo defined recruitment as “The process of searchingfor the prospective employees and stimulating them to apply for jobs in theorganization”. Thus there are two states in the recruitments 1. Searching for suitable candidate for job and 2. Motivating and encouraging them to apply for jobs.SOURCES OF RECRUITMENTInternal Sources of Recruitment:- The main sources of internal recruitment are promotion, transferand demotion. There are many advantages of using the internal labor market. An accurate knowledge of the employee and their performanceinternal recruitment can have a positive impact on employee moral. Someorganizations believe that this approach can increase employee loyalty andcommitment. 11
  12. 12. External Sources of Recruitment: There are four main sources  Unsolicited Applications: These are people who have submitted their CV to the organization on a speculative basis. They should be kept on file in the organization and used as a source of suitable candidates when the occasion arises.  Schools and Colleges: Many companies have developed links with particular schools and colleges, which they use as a recruiting source.  Recruitment agencies and consultancies: Apparently, there is extensive use of recruitment agencies, contracting out the recruitment task has a number of advantages for the organization.  Media Advertising: This is the most widely known method of recruitment. It has 3 main objectives. Attract suitable candidates to apply, discourage unsuitable candidates from applying, promote organizations public image. 12
  13. 13. CONSTRAINTS ON RECRUITMENT Logically, firms would seek to recruit in a manner that guarantees thegreatest number of qualified applicants. However, there are often constraintson the recruitment process, which prohibits some methods.Some of these constraints are 1. Organizational Policies 2. Affirmative-action programs 3. Recruiter Habits 4. Environmental Conditions 5. Job Requirements Organizational plans Another organizational policy that could potentially constrain recruitment efforts is a firm’s compensation policy  Affirmative-action plans: Occasionally, firms may adopt affirmative action policies. An effort to attain a workforce that is more representative of the general populace. In efforts to increase workforce diversity, firms may choose to voluntarily hire persons with specific characteristics; more often, law mandates such affirmative action policies. 13
  14. 14.  Recruiter habits: Recruiter habits many also constitute a recruitment constraint. For example past successes may lead to habits or preferred tendencies in recruitment. One recruiter, who had played rugby, had considerable success recruiting other rugby enthusiast. Where as he had luckily had this initial success, he wants so far as to overtly seek out rugby players in his recruitment obviously, rugby skills are not necessarily indicators of job-related success, such recruiter habit, do not constitute good recruitment practices. In the end, such habits may actually perpetuate past mistakes. Job Requirements: - Generally, skilled workers are more difficult to find than unskilled workers. A limited pool of potential applicants causes firms to use different recruiting techniques. Where as an advertisement placed in a news paper’s classified section may serve to attract unskilled workers, recruitment of skilled workers requires more. Job Posting: It is one of the most effectively used comparative mechanisms. The candidates design it and it will contain information they wish to convey and may get internal recruitment. Further, job posting help employees feel they have some control over their future in the organization. Environmental Conditions: In many unionized environments, policies may restrict the number of part-time employees working for the firm. This is clearly a recruitment constraint in so far as it places 14
  15. 15. limitations on the firm. However, it may well also limit the number of applicants because some very highly qualified applicants may simply prefer part-time employment.  Employ Referrals: Another common recruitment methodology is the employee referral. To fill job vacancies, present employees refer job seekers to the HR department as potential employees SELECTION During recruitment, it is important to have a large pool of qualifiedrecruits. However, after having recruited this large number of job applicants,organizations must weed out the unqualified ones and then select the verybest remaining candidates for the job. A well designed selection process willyield information about a candidate’s skills and weaknesses. There are some legal considerations involved in the selection of newemployees. The fear of wrongful termination lawsuits has caused manycompanies to become far more concerned about whom they hire. If acompany has selective in its hiring practices, it can reduce the instanceswhen it will be necessary to terminate employees. 15
  16. 16. Short-listing is the process to which a number of applicants arechosen from the total number of candidates further assessment beforemaking a final decision. Applicants may be divided into 3 categories  The marginal  The suitable, possible  The unsuitableStep 1:  Preliminary Selection: Preliminary selection of applicants is often done by setting minimum standards for the job, and communicating these standards for the job, and communicating these standards to the employees, and agencies that help to recruit. The fact that some potential applicants may not apply because of their inability to meet the minimum requirements serves as an initial screening device.Step 2:  Initial screening: The initial screening is done to select only the suitable candidates through the further stages in selection them, when reviewing resumes and applications forms, firms are further able to screen out unacceptable job candidates. At this point, firms can also assign priorities to the resumes so that the most promising candidates may be seen first. 16
  17. 17. Step 3:  Application forms: The application form is designed to obtain the information on various aspects of the applicant’s social demographic, academic and work related background and references.Step 4:  Tests: A test is a sample of a aspects of individual’s behavior, performance of attitude. It also provides a systematic basis for comparing the behavior, performance or attitude of two or more persons. Tests serve as a screening device and provide supplementary inputs in selection decisions. A number of selection tests are quail able to assist in making selection decisions.  Attainment test  Attitude test  Personality test  Intelligence test 17
  18. 18. Step 5.  Selection Interview: - The employment interview is conducted to learn more about the suitability of people under consideration for a particular job and is one further obstacle for the applicant to overcome. The interview is one further means of reducing the number of people who might be eligible for the jobStep 6:  Medical Evaluation: Medical evaluation is also known as physical examination is a selection tool which varies from the comprehensive to nominal, depending upon the job. Comprehensive physical examinations are necessary for physically handicapped. It reveals whether the candidate possesses the required stamina, strength and tolerance of hard working conditions.Step 7:  Final Interview: Since the immediate supervisor is ultimately responsible for new workers, he or she should have input into the hiring decision. The supervisor is better able to evaluate the applicant’s technical capabilities and is in a better position to answer the interviewee’s job-related questions. Further, the supervisor’s job- 18
  19. 19. related questions. Further, the supervisor’s personal commitment to the success of the new employee is higher if the supervisor has played a role in the hiring decision.Step 8:  Job offer: The actual hiring of an applicant constitutes the end of the selection process. At this stage, successful applicants must be notified of the firm’s decision.  The applications of unsuccessful applicants are often kept on file and the applicants of successful applicants will be retained in the employee’s personnel files.  There are other methods followed by different organizations in the process of selection. Management chooses the most appropriate candidate to accomplish the organization objectives, while the individual chooses the organization best suited to fulfill his aspirations. Once a person is selected induction and orientation programs follows. 19
  20. 20. Induction and orientation Induction is generally done to acquaint a new employee with theorganization, its objectives, policies, procedures, philosophies, strategies,products, market, customers, etc., So that the employee is clearly informedof what is expected of him as an employee of the organisation. Inductionprogram may be helpful for the new employee to shed their fear, delicacy oranxiety, and get them fully identified with the organization. Many organizations provide induction and orientation in a career pathmethod; i.e., rotating the new employee throughout the organization, itsvarious locations, divisions, departments and sub-units and closely watchand observe under the supervision of experienced seniors.NEED FOR STUDY The chief purpose of the study is to understand the process ofrecruitment and selection practices of the organizations especially of ITC.For every organization human is main source and resource for gettingprofits, in such a situation there is a need to select the best availablemanpower from the sources. The study is mainly made on the recruitment and selection practicesof the organization. The current study deals with the different steps involvedinto the process of recruiting and selecting the employees in theorganization. With the help of the study an employee in the individualopinion of the employees of the organization about their selection to thefindings mad in the report. 20
  21. 21. OBJECTIVES OF THE STUDY The present study recruitment and selection practices in ITC are madeby keeping the following as the main objectives.  To introduce the corporate profile with regard to the human resource management practices mainly concentrating on the recruitment and selection practices of the organizations with reference to ITC.  To study the recruitment and selection practices at ITC.  To analyze the views and problems of the employees and to know the level of satisfaction of them.  To improve the recruitment and selection practices in ITC  Providing the required suggestions which help in the growth and development of the management of the personnel of the organization.SCOPE OF THE STUDY HR approach of management to its people would go a long way inactivating effectively. It facilitates in identifying the right kind of people,socializing them in the most appropriate way, training and developing themin the right direction, assigning the tasks which are best suited for everyindividual so as to bring out their best, motivating them to make their bestcontribution and creating conditions for the people to enjoy their work. 21
  22. 22. As the people are considered valuable human beings, the everyperspective of management changes, and the people are motivated to foster aoneness with the organization. 22
  23. 23. CHAPTER 2METHODOLOGY 23
  24. 24. METHODOLOGY Methodology is the procedure applied to gather the informationrequired for the study. Collection of the data refers to a purpose forgathering information relevant to the subject matter under the study and themethod used depends mainly on the nature. Accordingly, the data collection can be grouped in to two types 1. Primary data 2. Secondary data Primary data are the originally observations collected by the researcher or his agents for the first time and used by them in their investigation. Once primary data is used it ceases to be primary data and becomes secondary data. Data Collection Process:- Primary Data: - The sources of Primary data includes direct personal investigation interview. Indirect oral investigation, information received through customers. Drafting a schedule questionnaire. Information with respect to the products, service of the retailer. Mode of distribution, availability of milk was gathered from the primary data. The primary data in the present study was obtained by questionnaire. 24
  25. 25. A survey was conducted on the consumer perception of SANGAM DAIRY information in the survey is being collected from the consumers, in Guntur and Tenali division’s areas. Questionnaire:- Primary data is being collected from the agents through questionnaire. It is the most common instrument in collection of primary data questions are both open ended and close ended questions were simple and easy understand. The number of questions was limited and not repeated. Secondary Data:- Sources of secondary data can be categorized into two boardcategories namely published statistics and unpublished statistics. Varioussources are available namely central and state Government publications.Foreign Government publications, technical and trade journals, books,magazines, news papers, business and industry publications statisticalreports etc. unpublished statistics include information found in dairies.Letters, biographies, autobiographies, scholars, research work, tradeassociations etc. In internal sources a business organization has to maintain records offinancial accounting, sales records, reports of salesmen etc. the marketingmanager and the other staff of the company assisted in providing the needful 25
  26. 26. information. Information regarding Indian milk industry and A.P milkindustry gathered from the secondary sources like internal.Sampling unit: The study is limited to manpower working in ITCSampling Size: The total sample size includes 100 employeesSampling technique: Judgment sampling has been adapted for thepresent study.Limitations: 1. Recruitment and selection is a most field of study even it is a single organization. 2. A duration of two months is not sufficient for presenting report on the topic 3. The data which is collected form a sample of 100 employees may not be constraint. 26
  27. 27. CHAPTER 3INDUSTRY PROFILE 27
  28. 28. TOBACCO INDUSTRY PROFILEBleeding state of cigarette/tobacco industry:- Tobacco today is the largest contributor to Indian excise collections.Despite that the industry has been getting step-motherly treatment by thecentral government. The industry has been facing regular increase in exciseduty on cigarettes in every budget for past so many years. The cigaretteindustry in particular has been suffering both at the hands of centralgovernment as well as state governments. In CY 12100 also the cigaretteindustry was again made a scapegoat and a proposal for additional levy of1% on cigarette manufacturers was made to pay for the lackadaisicalapproach of Government regarding unregulated tobacco crop. Last year(cy10/00) a number of big events like crop holiday for the current year,proposals of additional levy on cigarettes etc. dominated the industryscenario. Based on the information provided by Mr. Ram Poddar, CEO ofgolfer Phillips India ltd, we herby present an outlook on the industry.Industry background: India is a major grower and exporter of tobacco in the world.Presently India is among top three producers of tobacco in the world. 28
  29. 29. Despite lower production of total produce being exported Indian exports itfigures among top 10 exporters of the product in the world. In addition tobeing the largest contributor to government coffers, the industry alsoprovides employment to more than 26mn people in the country both directlyand indirectly. The Indian tobacco is largely used for making beedis andchewing products like khaini etc. tobacco is a very peculiar crop. It is grownin rain starved areas on Solis which are otherwise not suitable for any othercrop. Thus it makes use of the least resources available to it, to give aproduce which provides so much to government offers it learns of excise,exports as well as employment that today the per acre earning of farmersfrom a specially type of tobacco is much higher than any other crop grownin the country. There are various types of tobacco grown in the country but most ofthe exports of tobacco by our country are of flue curved Virginia (FCU)type. The Indian tobacco exported, is mostly used as a filler in theinternational cigarettes in fact likely any other agro-product, thecharacteristics of tobacco, its taste, its aroma and other properties largelydepend on the soapy or area in which it is grown. Moreover cigarettessmokers are very particular about the taste, the aroma of their cigarettebrand. So it becomes extremely necessary to maintain the blend tobaccoused for cigarette manufacturing to give the same quality product toconsumers. This is to maintain the consistency of as of a brand. Recent happenings and its impact on the industry in cy12/00 a numberof big things happened in the tobacco industry both on domestic as well asinternational front. In tar nationally tobacco prices fell to extremely low 29
  30. 30. levels owing to excess production. Carryover of previous years stock anddipping demand owing to high pitched protests against tobacco and cigarettemanufacturers the year also witnessed a major happening on theinternational front in terms of $ 145 bun penalty against tobacco andcigarette manufacturers the year also witnessed a major happening on theinternational front in terms. On domestic front the year saw an excess production due to largequantity of non-regularized crop. As in India the tobacco cultivation is undercontrol of Tobacco board which licenses for the amount that can be grown ina particular area, the total amount expected at the end of the year isapproximately known. But due to curativeness of the earning per acre oftobacco crop a number of farmers grow unauthorized crop. In domestic aswell as international market, particularly in the background of overproduction in other countries also has resulted in a glut. As a result even thegenuine tobacco growers are suffering. The tobacco board in order to protectthe interested of tobacco farmers has recommended crop holiday for ey12/00 and to add to it a proposal to introduce a levy of 1% on the sales ofcigarettes in order to fund this noble cause. Too has been made. ThroughGovernment proposals have a noble cause of helping out poor farmers andseem to be good remedial measures but these are very short-term solutionsto the problem. Presently of the total tobacco produce in India only 50% is used in thedomestic market and of this domestic consumption of tobacco only 16% isused by cigarette industry. So to what extent is it justified that an industryconsuming just 16% of the total domestically consumed tobacco bears the 30
  31. 31. brunt of funding the cause. Through 1% levy, which on the first hand hasoccurred due to unauthorized crop? Moreover the noble cause seems to bemeant only for a few FCV tobacco growers that too for those who shouldinstead be punished for growing unauthorized crop. In addition to this already the excise collection from tobacco industryis skewed against cigarette manufacturers, which account for more than 90%of the total state and central levies imposed on tobacco. If we see thecontribution of various tobacco products towards ten collection from tobaccoindustry we find that per kg of tobacco aced in cigarettes contributes Rs 680while per kg of tobacco used for bead manufacturing yields just Rs. 34 andper kg of tobacco used for checking products contribute only Rs 40. in sucha scenario is its justified that cigarette manufacturers be placed at altar toprotect the defaulting farmers. Aim of the opinion that the proposal ofimposition of 1% levy on cigarette sales is unjustified.Regarding the crop holiday the industry has a divided opinion. Tobaccoinstitute of India. A representative body of the industry is strongly againstsuch a crop holiday and tome also the crop holiday doesn’t make any sensewith consumer being very particular about the task and aroma of thecigarette brand which in turn depends on the type of tobacco used, the cropholiday would lead to present Indian tobacco importers to switch to othercountries and once the switch takes place it would be for a long term as noimporter company would like to ricks change in flavor and taste of itscigarette brands. So the crop holiday in long term perspective would lead to 31
  32. 32. loss of export market for Indian permanently and also instead of helpingtobacco farmers is going to do more harm.Woes of the tobacco industry: If we take a glance at the current situation of the tobacco industry wewill find that the situation is just like that of a farmer killing the hen that laidgolden eggs. Today the government is mulching the industry, especially thecigarette industry to such an extent that the industry would very soon die anUnna rural death. In fact the indications from trend of consumption andexcise collection just corroborate these fears. Presently tobacco industry’s contribution to excise has increased frommere 7.25% in 1987-88 to 12% in 2000-01 while the consumption oftobacco has declined from 552 mn kgs in 1999. Further the cigaretteconsumption has dropped from 23% of total tobacco consumption hasincreased. In US the contribution has increased from mere 2% in 1880 to84% in 1999. Besides this, already the cigarette industry is gasping forbreath due to imposition of luxury tax or entry tax by various states rangingfrom 1.5% to 10%. In such a scenario of rising taxes and decreasing consumption, anyfurther imposition of levies or taxes on the cigarette industry seemsunjustified. So I think the government should give a glance to these aspectsand should try to see the situation from cigarette industry’s point of viewbefore finalizing any proposal. 32
  33. 33. India is the third largest producer of tobacco in the world after china andUSA. Through it occupies a mere 0.25 per cent of the cropped area in thecountry. It contributed Rs 507 crores to the foreign exchange earnings andRs. 3200 crores to the exchequer by way of central excise during 1992-93.Further it provides employment to millions of people both directly andindirectly. Despite playing such a vital role in the economy the industryfaces many constraints for it development. Increasing productivity,improving the quality, better marketing practices of non virgin tobacco and amore retinal excise policy on cigarettes would help the growth of theindustry as well as meet the challenges of the future.The Tobacconist is: Tobacco needs a country like India. Hot climate fertile soil plenty ofrain and it needs a manufacture like so partial exports. Quality-conscious.Service oriented with a ginger upon the place of the market in India. An enterprise that began in 1972 as our modest family business. Hasnow grown in to a giant exporter of tobacco to world-renowned clients. Thetobacco we trade in is subjected to a series of rigorous quality tests beforebeing sent to our customers. The result- a product purest in grand, richest inflavor the tobacco consignment is carefully packed in tamper-proofcontainers and shipped to the destination immediately. The result-promptdelivery at your doorstep with the product in perfect condition according toweather. All this comes to you from four state-of-the art factories based inwestern India. Connected to India’s largest seaport kandla with an annual 33
  34. 34. handling capacity of 25000 tones of tobacco we are in a position to meetyour requirements at any time of the year. Our brands of not manufacturedtobacco CAMEL, AFZAL & ISFAHAN have become favorites with ourclients the world over. ILTD PROFILEAbout ILTD:We are  The leaf tobacco arm of ITC ltd.  The largest buyer, processor and exporter of Indian cigarette tobaccos.  Committed to tobacco crop development through fundamental and applied research.  A professionally managed progressive institution with proven leadership in the Indian tobacco industry For over 90 years, we are identified with the introduction and development of cigarette tobaccos of India. Our efforts in cigarette tobacco development and export marketing have enable India to become the fifth largest cigarette tobacco producer and the eighth largest exporter of cigarette type tobaccos in the world. We have sophisticated state-of-the-art processing and storage facilities located in the cigarette tobacco growing regions of India. 34
  35. 35. “ILTD believes in building an enduring relationship with you tocreate a unique competitive advantage that will enable you to within theglobal market place”.ILTD-core capabilities: ILTD have been recognized by national and international cigarettemanufacturers and tobacco merchants for our core capabilities in: ILTD continuously strive to improve the quality of India’sofferings to international cigarette tobacco customer’s processexcellence. Our plants with state of the art technology and internationallybenchmarked manufacturing process deliver quality products all the time. Building relationship with framers. This helps to constantly transfer technology from the laboratory to the land for achieving superior yield and better quality (tobaccos)Customer Focus: Our value proposition to our customers is to create uniquecompetitive advantage that will enable them to will global market. 35
  36. 36. Talent Management: ILTD process managers with a wealth of experience, gained overdecades, in crop development, sourcing, processing, storage and logistics.ILTD- Research and Development: ILTD, the tobacco organization in the Indian corporate sector withextensive R&D facilities covering all aspects of tobacco crop cultivation,processing and packing. Our R&D center is equipped to provide ourcustomers with all the relevant data on chemical and physical parametersof their leaf supplies from us. Our passion for quality and productivity enable our customers getsthe best at the most competitive price in a consistent manner.This is borne out by: Introduction of improved varieties. Propagation of contemporary and cost effective agro-techniques. Energy and ECO conservation measures. Use of alternative sources of energy-agro wastes (briquettes from coffee husk and paddy husk) and solar energy. Past harvest product management. 36
  37. 37. Our product quality emanates from our strategy of intimate involvement with tobacco farmers in India. By collaborating with world renowned tobacco technology centers and government organizations for technology and knowledge transfer. We enable the Indian tobacco farmers to adopt best practices in use. Our R&D facilities are manned by qualified and experienced scientists including agronomists, plant breeders, entomologists and chemists. Our R&D unit has been accorded due recognition with the following awards. Best research and development of new innovation Gold award.  For its contribution to farm productivity improvement through the introduction of improved varieties and propagation of contemporary and cost effective agro-techniques. Best energy conservation implementation gold award.  For energy and eco conservation measuresILTD-processing: Our green leaf threshing (GLT) plants with a total capacity to process520 metric tones per day are comparable with the best in the world. They arefully automated with the latest equipment to process and deliver 100 millionkegs of high quality tobaccos every year. It is no surprise that they enjoy 37
  38. 38. ISO 9002 and ISO 14001 accreditations. We have processing lines at twolocations in the southern state of AP-chirala with 3 processing lines andAnaparthi with one processing line. We continuously work with our customers to redefine product qualityspecifications to meet the requirements of new generation cigarette makingmachinery. Our plants use internationally approved methods for ensuringproduct quality. Environment, health and safety are our prime concerns we spare noeffort to ensure an eco-friendly work environment. Our endeavors have beenrewarded with  National safety award from the British safety council  Swards of Honor from the British safety council British standard 7750  ROSPA Gold Awards from the Royal society or prevention of accidents  Golden peacock Environment management Award from the World environment foundation.  Rajiv Gandhi national Government of India.  Special commendations safety certificate from the ministry of labor Government of India. We are the first in the world among all the GLT’s to be accredited withISO 14001 environmental certification. 38
  39. 39. Our processing plant at Chirala is the first unit in India to receive theconnected social accountability standard certification (SA 8000). The Chirala plants have also been accredited with the OHSAS 18000-199certificate.ILTD-Logistics: Our in-house ware housing facilities are benchmarked to internationalstandards for hygiene and in is station control. We posses very large warehousing capacity to stock around 100 m.kgof finished product. We also manage our customer’s inventories by shippingout as per their manufacturing schedules (just in time delivery) We are an ideal “one-stop-shop” for the finest of Indian qualitytobaccos, our large inventory enables customers to choose from a range ofgrades and varieties any time during the year, no order is too small for us, beit 10 tones or 10000 tones. We ensure in comparable service to all ourcustomers’ world wide at all times.ILTD- The people: Om ILTD, we firmly believe that the leaf business is a relationshipbusiness and it is our people, more than any other resource, which enable usto compete and win in the market place with our customers. In our 39
  40. 40. employees we value their abilities to create, judge, imagine and buildrelationship and these values drive our people to achieve superior resultsyear after year. Our human resource systems practices are designed such as topromote and nature a work culture that to steers excellence, innovation,competence and contribution continuous, investment in capability buildingensure that our people remain at the forefront in customer responsiveness.Sustaining ILTD’s leadership in the leaf business by combining the virtuesof tradition with modernity, and delivering goods and services efficientlywith a personal touch. If there is a one key to superior business performance, it is our ability toturn the perceptions, capabilities and relationships, of our people into thebuilding blocks of the organization. Our track record, so far, standstestimony of the organization and the future will be no different.ILTD-Strengths: As an organization in the tobacco business for more than a decades. Thestrengths we posses will help customers realize several tangible benefits.  A market leader, sourcing more than 50% of all cigarette type tobaccos in India.  Economies of scale, to offer competitive advantage to our customers.  Largest processor, with 520 tons per day state of the art technology comparable to the best in the world. 40
  41. 41.  Capable of “Any time, any variety and any quality” delivery of tobacco in different product forms.  Huge ware housing, with the best python-sanitary and hygiene systems, to stock up to 100 m.kg and facilitate just in time deliveries to our customers.  Prompt and efficient pre-post sales service.  Being part of ITC ltd-the largest cigarette manufacturing and marketing company in India, our people have the expertise across the chain from seed to smoke to understand your concerns.  It enabled to deliver a consistent quality product at a competitive price. ITC Limited – ILTD Division, Anaparthi Human Resources Policy. We are the team of ITC limited-ILTD division, Anaparthi, arecommitted to develop an informational and inspirational culture that enablessuperior performance of employees and the unit through benchmark ablehuman resource systems and procedures. The human resources policy of the unit focuses on:  Relieving that employees are its major assets and fasters the full realization of individual potential through providing developmental opportunities by encouraging and rewarding innovativeness.  Keeping work environment conductive to employees’ involvement and communication both informal and two way communication. 41
  42. 42.  Valuing ideas of employees and gives employee a space to executive them.  Keeping all employees well informed, trained, empowered and giving them the freedom to take AGLT goes through innovation and improvement.  Developing a climate of cooperation and collaboration among employees and the management.  Believing that career growth is determined by competency and performance.  Aligning people with unit’s strategies to build culture of stretch and innovation there by enhance contribution. THE ITC PROFILE ITC is one of the idea’s foremost private sector companies with amarket capitalization of over us $13 billion and a turnover of $3.5 billion.Rated among the world’s best big companies by forces magazine and amongidea’s most respected companies by business world. ITC ranks third in pre-tax profit among India’s private sector corporations. ITC has a diversified presence in cigarettes, hotels, paper boards andspecialty papers, packaging, agri-business, packages foods andconfectionery, information technology, branded pares, greeting cards, safetymatches and other FMCG products. While ITC is an out standing marketleader in its traditional business of cigarettes, hotels, paper boards,packaging and Agro-exports, it is rapidly gaining market share even in its 42
  43. 43. nascent businesses of packaged food and confectionery, Branded appareland greeting cards. As one of India’s most valuable and respected corporations ITC iswidely perceived to be dedicatedly nation-oriented Chairman Y.C.Deveshwar calls this source of inspiration “a commitment beyond market”.In this source of inspiration believes that its aspiration to create to enduringvalue for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of itsbusinesses towards international competitiveness but by also consciouslycontributing to enhancing the competitiveness of the larger value chain ofwhich it is a part”. ITC’s diversified status originates from its corporate strategy aimed atcreating multiple divers of growth anchored on its time-tested corecompetencies: distribution reach, superior brand-building capabilities,electives supply chain management and acknowledged service skills inhoteliering. Over time, the strategic forays into new businesses are expectedto garner a significant share of these emerging high-growth markets of inIndia. ITC’s diversified status originates from its corporate strategy aimed atcreating multiple divers of growth anchored on its time-tested corecompetencies. ITC’s Agri-business is one of India’s largest exporters of agriculturalproducts. ITC is one of the country’s biggest foreign exchange corners (US 43
  44. 44. $2.4 billion in the last decade). The company’s ‘e-couple’ initiative isenabling Indian agriculture significantly enhance its competitiveness byempowering Indian farmers through the power of the internet. Thistransformational strategy, which has already become the subject matter of acase study a Hayward Business School, is expected to progressively createfor ITC a huge rural distribution infrastructure, significantly enhancing thecompany’s marketing reach. ITC’s wholly owned information technology subsidiary, ITCInfoTech India Limited, is aggressively pursuing emerging opportunities inproviding end-to end IT solutions, including e-enabled services and businessprocess out sourcing. ITC production facilities and hotels have won numerous national andinternational awards for quality, productivity, safety and environmentmanagement system. ITC was the first company in India to be rated forcorporate Governance by ICRA, an associate of moody’s investors service,which accorded it the second highest rating, signifying “a high level ofassurance on the quality of corporate governance”. ITC employs over 20000 people at more than 60 locations acrossIndia ranked among India’s most valuable companies by the ‘Businesstoday’ magazine. ITC continuously endeavors to enhance its wealthgenerating capabilities in a globalizing environment to consistently rewardmore than 450000 shareholders, fulfill the aspirations of its stakeholders andmeet societal expectations. This over-arching vision of the company is 44
  45. 45. expressively captured in its corporate positioning statement. “Enduringvalue for the nation, for the shareholders.History of ITC Limited: ITC was incorporated on August 24, 1910 under the name of“imperial tobacco company of India limited”. Its beginnings were humble, ahumble based office on Radha bazer lane, Kolkata, was the center of thecompany’s existence. The company celebrated its 16th birthday on August24, 1926 by purchasing the plot of land situated at 37 chowringhee, (nowrenamed J.L. Nehru Road) Kolkata, for the sum of Rs. 310000, this decisionof the company was historic in more ways than one. It was to mark thebeginning of a long and eventful journey into India’s future. The company’sheadquarter building, Virginia future. The company’s which came up on thatplot of land two years later, would go on to become one of Kolkata’s mostvenerated land marks. The company’s ownership progressively indinised and the name ofthe company was changed to ITC Limited in 1974 in recognition of thecompany’s multi business portfolio encompassing a wide range of businesscigarettes and tobacco, hotels, information technology, packaging, paperboards and specialty papers, Agro-exports, foods lifestyle retailing andgreeting gifting and stationery. The full stops in the company’s name wereremoved effective September 18, 2001. The company now standsrechristened “ITC limited”.About ITC Limited: 45
  46. 46.  Though the first six decades of the company’s existence were primarily devoted to the growth and consolidation of the cigarettes and leaf tobacco business, the seventies witnessed the beginnings of a corporate transformation that would user in momentous changes in the life of the company. ITC’s packaging and printing business division, was set up in 1925 as a strategic backward integration for ITC’s cigarettes business. It is today India’s most sophisticated packaging house. In 1975 the company launched its hotels business with the acquisition of a hotel in Chennai which was rechristened” ITC-welcome group Hotel Cholas”. The objective of ITC’s entry into the hotel business was rooted in the concept of creating value for the nation. ITC choose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure. Since them ITC’s hotels business has grown to occupy a position of leadership with over 65 owned and managed properties spread across India. In 1979, ITC entered the paper boards business by promoting ITC Bhadrachalam Paper Boards Limited, which today has become the market leader in India, Bhadrachalam paper boards amalgamated with the company effective march 13, 2002 and became a division of the company, Bhadrachalam paperboard Division. In November 2002 this division merged with the company’s tribe tissues division to form the paperboards and specialty, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of carapace, an economically backward area in the state of Andhra Pradesh. It is directly involved in 46
  47. 47. education, environmental protection and community development. In 2004 ITC acquired the paperboard manufacturing facility of BILT industrial packaging co. Ltd (Bipco) linear Coimbatore, tamilnadu the Kauai unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985 ITC set up surya tobacco co. in Nepal as an Indo-Nepal and British joint venture. Since inception. Its shares have been held by ITC, British American tobacco and various independent shareholders in Nepal. In August 2002. surya tobacco became a subsidiary of ITC limited and its name was changed to surya Nepal private limited In 1990, ITC acquired tribune tissues Limited, a specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was naming the tribe tissues Division (TTD). To harness strategic and operational synergies. TTD was merged with the Bhadrachalam paper Boards Division to form the paper boards and specialty papers Division in November 2002. Also in 1990 leveraging its agro-sourcing competency. ITC set up the international business division (IBD) for export of agro-commodities. The division is today one of India’s largest exporters. ITC’s unique and now widely acknowledgede-chopal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 7 state covers over 3.5 billion farmers. ITC first rural mall christened choupal sagar was inaugurated in August 2004 at shore. The year 2006 witnessed the vamping up of the company’s rural retailing network with 10 choupal sager being operational in three states of Madhya Pradesh, Maharashtra, and uttar Pradesh. Nine more choupal sagar being 47
  48. 48. operational in three states of Madhya Pradesh, will be launched shortly.  In 2000, ITC’s packaging and printing business launched a line of high quality greetings cards under the brand name “Expressions”. In 2002 the product range was enlarged with introduction of gift wrappers, Autograph books and slam books. In the same year, ITC also launched “expressions Matrubhashaa Vermicular range of greeting cards in eight of premium stationery products. In 2003 the company rolled out “classmate” arrange of notebooks in the school stationary segment.  ITC also entered the lifestyle retailing business with the wills sport range of international quality relaxed wear for men and women in 2000. The wills life style attain of exclusive stores later expanded its range to include wills classis formal wear (2002) and wills club life evening wear (2003). ITC also initiated a foray into the popular segment with its men’s wear brand John players in 2002 in December 2005, ITC introduced essenza Di wills, an exclusive line of prestige fragrance products, to select “wills lifestyle” stores. In 2006 wills life style became title partner of the country’s most premier fashion event- wills lifestyle India fashion week. That has gained recognitionITC’s Corporate Strategies: ITC’s corporate strategies are aimed at matching its core capabilitieswith market opportunities to produce superior shareholders values. The keycorporate strategies are: 48
  49. 49.  Continue to focus on the core businesses of cigarettes and tobacco, hotels, packaging, and paperboard. Ensure that each of its businesses meets the three criteria of sustainability, namely market standing, profitability, and internal vitality. Exit from businesses which do not meet these criteria within agreed time frame. Ensure that each business is internationally completive in the Indian global market. Create distributed leadership within the organization by nurturing talented and focused to management beams for each of the business. Institute and practice a system of corporate governance appropriate to ITC’s character and constitution. Such a system of governance must achieve a whole some balance between the need for executive freedom for management and the requirement of a framework for effective accountability. 49
  50. 50. EMPLOYEE PROFILE The factory at Chirala is seasonal as the tobacco crop is gorgonspecific at different zones. During season the processing is done in threeshifts. During off season, plant and facilities maintenance and modificationsare done. NON UNIONSED SEASONAL TOTAL SEASONAL Technicians Nil 138 138 Class A 136 34 170 Class B 1522 125 1647 Badli 269 269 Technicians category are a pool of technical qualified (Diploma/ITC)employees who cater to the needs of production and engineeringdepartments clerical are primarily those who maintain the accounts andcapture for mostly manual tasks in the factory and the majority are illiterate. Each of the unionized categories of employees has their owndemocratically union and elections are held once in two years. These officewearers are elected y their category of employees across the ICTD divisionwith representatives for the division and for the division of operating units. Long term agreements for spells of four years are entered into bynegotiating with the elected representative of the respective category. The 50
  51. 51. work requirements, the compensation package and employee welfare arefinalized in the LTA Belies, numbering 269, are the category of employees who provideabsentee cover for class B employees during season. They get converted toseasonal class B employees based on requirements.Contracted works are of two categories:  Regular: Pest control operations and security are being carried out by professional competent agencies.  Need based: Vivil works, repairs, painting, keeping tec. Licensed contractors with competencies required for their trade and trained and authorized for work in the factory, are engaged. Their work conditions are monitored to conform to contact labor related legislation and ITC guidelines for contact labor.Training of personnel in ITC-ILTD Division, Aanaparthi:a) Factory personnel manager/welfare officer are responsible for organizingvarious training programmes whether in house or outside external trainingprogrammes as per training calendar finalized during the year.b) Training a person is arranged in-house or through outsideseminars/workshops/training programmes. 51
  52. 52. c) ITC Limited-ILTD Division is equipped with a training center havingnecessary facilities for conducting in-house training programme.d) In-house is conducted by manager, training center, managers of differentdepartments and external facility will be called depending upon the coursecontent of the programme.e) Yearly training plan is established and maintained for personnel ofvarious categories and the same is available in the personnel department.f) Before starting training programme a circular/lotus notes will be sent tothe all HOD’s for nominating the participants. This process will start onweek before the programme is scheduled. The concerned may communicatethe nominators of the candidate either through better or lotus notes.Feedback on training programme a (circular/lotus not) will be taken from theparticipant immediately after completion of the programme. Feedback on effectiveness of the organized training programme willbe taken from concerned managers/HODs/FM maximum within a monthafter organizing a training programme by measuring the expected Vsachieve performance and through written comments. Selection of faculty will be done on the post feedback from theemployees and rating should not be less than 60% out of 100% Identification of training needs in ITC-ILTD Division, Anaparti. 52
  53. 53. Training needs are identified by concerned department managers onthe basis of appropriate job requirements for each category of personnel asunder: The identified training needs by concerned managers will bediscussed in HODs meeting and finalized in consolation with factorymanager and a detailed training calendar will be prepared every year in themonth of January for the programmes that are going to be conducted duringthe year.Workers: Operating skills, behavioral progammes and EHS programmes.Technicians: Operation and maintenance skills, behavioral programmes, computerawareness Programmes and EHS programmesStaff: Operating and supervisory skills, Behavioral Progammes computerawareness programmes and HIS programmes. Staff manager who sits in divisional head quarters deals trainingmatters in respect of manager’s staff ‘X’ and ‘Y’ and senior grand employee. 53
  54. 54. RECRUITMENT AND SELECTION PRACTICES AT ITCHuman Resource Management at ITC: HRM practice of ITC is the one among the practices followed by thelarge firms of India. The present chapter deals with the topic of HRMphilosophy, HRM policy and the functions of HRM department, Humanresource planning process after covering these aspects the chapter will befollowed by the recruitment and selection practices of the organisation.HRM Philosophy:  Employees are the valuable resources of the organization  Relationship between different groups so that work is performed effectively  Eliminating waste and improper use of human resource.Human Resource Management Policy:  Employees are provided with welfare activities to increase their quality and work life  Employees are provided with necessary training facility, so as to improve their skills.  Then ultimately resulting in improved productivity and personnel development. 54
  55. 55. Functions of Human Resource Management Department: The HR Department looks after the following functions administrationof the welfare facilities, reports, loans, advances, transfer, assignment etc.Deals with matter relating to recruitment and selection administration ofHRD activities, matter relating to discipline.The Process of Human Resource Planning:HRP consists of the following steps;  Analyzing the organizational plans  Demand Forecasting: Forecast the overall human resource requirements in accordance with the organizations plans.  Supply forecasting obtaining the data and information about the present inventory of Human Resource and Forecast the future changes in present Human Resource inventory  Estimating the human resource requirementsRecruitment and selection practices at ITC: 55
  56. 56. ITC company recruitment and selection practice is similar to that ofthe large organizations. Through these practices the HRM department is ableto meet the requirements of the organization.Recruitment and selection process in ITC:  Position or job vacancy  Approval for filling the vacancy/manpower planning  Notification of vacancy through advertisements/consultants or agenciesSources of Recruitment:ITC recruitment sources are-  Advertisements  Deputation or contract  Recruitment consultants/Head Hunters.  Promotions  Transfer. From these sources ash organization receives the applications for the specified requirements to fill the vacancy. Based upon the departments’ specification a job analysis process will be done by the HRD department accordingly. On receiving the approval from MD and CEO the HRD initiates the process by advertising the local news paper and national papers 56
  57. 57. depending upon the manpower recruitment or it may be referred to the recruitment consultants, for receiving the suitable applications.Selection Process in ITC Interviews: ITC used to recruit through interviews to security the suitablecandidate since its inception by selecting the best required from those whoare selected in the interviews. Written test was the first step in the selectionprocess and follows with the personal interview. The selected candidatesfrom the written test and the personal interview have to go through groupdiscussion and the best in the group discussion will be selected to meet therequirement. In case the technical recruitment, practical test and selection test areconducted. The candidates who are qualified in the tests will be called forthe final interview will be done by the selection committee as constituted bythe HRD. HRD will take the initiative of based on the selection committee’sreport All selected candidates will be sent on offer of employment letter,with the date of joining, pay and allowances, designation and the other termsand conditions of employment in ITC. At the time of joining the candidate should produce the followingdocuments of the HRD 57
  58. 58.  Educational qualification  Proof of data of Birth  Experience certificate  Relieving letter from the precious organization  Attestation forms for police verification  Reference. Policy enquiry about the selected person is made after his interview. Medical examination is also carried out. Selection of local candidate was made particular under certain situations to meet the requirements. The selected employees will be appointed on training for a period of one year. Based on the appraisal reports, candidates will be absorbed into the suitable grade and will be on probation period of six months. After successful completion of probation period the candidate will be confirmed subject to the appraisal report. Manpower Planning in ITC: 1. Activity based manning 2. Badly Concept 3. Nominee System 4. Pool Concept 5. Multi-skilling and FlexibilityManpower Planning in ITC: 58
  59. 59. Separations-  Recruitments  Deaths  Resignations  Dismissals  VRS  Transfers out etc.,  Recruitment  Promotions  Transfers. 59
  60. 60. CHAPTER 4DATA ANALYSIS AND INTERPRETATION 60
  61. 61. Table 1 Recruiting the employeeS.No Particulars No. of. Respondents Percentage 1. Internal 70 70 2. External 30 30 Total 100 100Interpretation: From the above table 70% of the employees are recruitinginternally and 30% of the employees are recruiting externally. 61
  62. 62. Graph – 1 Recruiting the employee 80 70 70 60 50Percentage 40 30 30 20 10 0 Internal External Particulars 62
  63. 63. Table 2 External recruitmentS.No Particulars No. of. Respondents Percentage 1. Through agencies 60 60 2. Through reference 20 20 3. Casual applications 10 10 4. Data banks 10 10 Total 100 100Interpretation: From the above table 60% of the employees are throughagencies and 20% of the employees through reference, 10% of theemployees from casual applications and 10% of the employees are recruitingdata banks. Graph 2 63
  64. 64. External recruitment 70 60 60 50percentage 40 30 20 20 10 10 10 0 Through Through Casual Data banks agencies reference applications Particulars Table 3 64
  65. 65. Recruitment policyS.No Particulars No. of. Respondents Percentage 1. Yes 100 100 2. No - - Total 100 100Interpretation: from the above table 100% of the employees said ‘Yes’about the recruitment policy in the organization? Graph 3 Recruitment policy 65
  66. 66. 120 100 100 80 e g a t n 60 e c r e P 40 20 0 0 Yes No Particulars Table 4 Informing the vacancy positionS.No Particulars No. of. Respondents Percentage 66
  67. 67. 1. Through word of mouth 10 10 2. Notice board 60 60 3. Department heads 30 30 Total 100 100Interpretation: from the above table 60% of the respondents respondedabout the information of vacancy position is through notice board, 30% saidthrough department head and 10% said through word of mouth. Graph 4 Informing the vacancy position 67
  68. 68. 70 60 60 50Percentage 40 30 30 20 10 10 0 Through word Notice board Department of mouth heads Particulars Table 5 Identification candidate for recruitment 68
  69. 69. S.No Particulars No. of. Respondents Percentage 1. Through adds 60 60 2. Internet 30 30 3. Consultants 10 10 Total 100 100Interpretation: From the above table we concluded that 60% for therespondents recruited through ads and 30% for the candidates recruitedinternet and 10% of the candidates recruited consultants. Graph 5 Identification candidate for recruitment 69
  70. 70. 70 60 60 50Percentage 40 30 30 20 10 10 0 Through adds Internet Consultants Particulars Table 6 Manpower planning 70
  71. 71. S.No Particulars No. of. Respondents Percentage 1. Department heads 20 20 2. HR department 50 50 3. Above two 30 30 Total 100 100Interpretation: From the above table 50% of the employee said HRdepartment will participate in the manpower planning, 30% of the employeesaid both the department heads and HR department and 20% of theemployees said department heads. Graph 6 Manpower planning 71
  72. 72. 60 50 50 40Percentage 30 30 20 20 10 0 Department HR department Above two heads Particulars Table 7 Recruitment sources for top-level management 72
  73. 73. S.No Particulars No. of. Respondents Percentage 1. Internet 25 25 2. Internal Search 30 30 3. Through ads 30 30 4. Above all 15 15 Total 100 100Interpretation: From the above table we concluded the recruiting top levelmanagement 25% internet, 30% are internal search, and 30% are through adsand 15% are recruiting above all. Graph 7 Recruitment sources for top-level management 73
  74. 74. 35 30 30 30 25 25percentage 20 15 15 10 5 0 Internet Internal Through ads Above all Search Particulars Table 8 Recruit the employee of company 74
  75. 75. S.No Particulars No. of. Respondents Percentage 1. Quarterly 10 10 2. Half yearly 10 10 3. Annually 20 20 4. Whenever required 60 60 Total 100 100Interpretation: From the above table, we concluded the employees 10%quarterly, 10% half yearly, 20% annually and 60% of employee recruitingwhenever required. Graph 8 Recruit the employee of company 75
  76. 76. 70 60 60 50Percentage 40 30 20 20 10 10 10 0 Quarterly Half yearly Annually Whenever required Particulars Table 9 Regarding the present recruitment policy 76
  77. 77. S.No Particulars No. of. Respondents Percentage 1. Satisfied 70 70 2. Needs improvement 30 30 Total 100 100Interpretation: From the above table we concluded that the presentrecruitment policies are 70% satisfied, and the 30% are needs improvementof the recruitment policy Graph 9 Regarding the present recruitment policy 77
  78. 78. 80 70 70 60 50Percentage 40 30 30 20 10 0 Satisfied Needs improvement Particulars Table 10 Improvements in the present Recruitment Policy 78
  79. 79. S.No Particulars No. of. Respondents Percentage 1. Yes 90 90 2. No 10 10 Total 100 100Interpretation: From the above table we concluded the improvement in thepresent recruitment policy to recruit 90% of yes and 10% of no above all forthe improvement in the present recruitment policy Graph 10 Improvements in the present Recruitment Policy 79
  80. 80. 100 90 90 80 70 60 Percentage 50 40 30 20 10 10 0 Yes No Particulars Table 11 Recruitment Sources for middle-Level ManagementS.No Particulars No. of. Respondents Percentage 80
  81. 81. 1. Internet 10 10 2. Through ads 40 40 3. Consultants 40 40 4. Above all 10 10 Total 100 100Interpretation: From the above table, we concluded the sources of middlelevel management to recruit the 10% of internet, 40% through ads, 40%consultants and 10% above all for the middle level management. Graph 11 Recruitment Sources for middle-Level Management 81
  82. 82. 45 40 40 40 35 30Percentage 25 20 15 10 10 10 5 0 Internet Through ads Consultants Above all Particulars Table 12 Recruitment through campus selection 82
  83. 83. S.No Particulars No. of. Respondents Percentage 1. Yes 85 85 2. No 15 15 Total 100 100Interpretation: From the above table 85% of the employees said ‘Yes’about the campus selection in the organization and the remaining 15% said‘No’ Graph 12 Recruitment through campus selection 83
  84. 84. 90 85 80 70 60Percentage 50 40 30 20 15 10 0 Yes No Particulars Table 13 Interview’s for selecting employees 84
  85. 85. S.No Particulars No. of. Respondents Percentage 1. Structured 90 90 2. Unstructured - - 3. Stress 10 10 Total 100 100Interpretation: From the above table 70% of the employee said structuredinterviews while selecting employee and 10% of the employee said stress inthe organization. Graph 13 Interview’s for selecting employees 85
  86. 86. 100 90 90 80 70 60Percentage 50 40 30 20 10 10 0 0 Structured Unstructured Stress Particulars Table 14 Difficulty in recruiting employees 86
  87. 87. S.No Particulars No. of. Respondents Percentage 1. Yes - - 2. No 100 100 Total 100 100Interpretation: From the above table 100% of the employees said ‘No’about the recruiting employee in the organization. Graph 14 Difficulty in recruiting employees 87
  88. 88. 120 100 100 80Percentage 60 40 20 0 0 Yes No Particulars Table 15 Interviews in selection process 88
  89. 89. S.No Particulars No. of. Respondents Percentage 1. Preliminary interview 36 36 2. G.D 28 28 Decision Making 3. 36 36 interview Total 100 100Interpretation: From the above table 36% of the employees saidpreliminary interview in selection process 36% of the employees saidthrough decision making interview and 28% of the employees said throughG.D. Table 15 Interviews in selection process 89
  90. 90. 40 36 36 35 30 28 25PErcentage 20 15 10 5 0 Preliminary G.D Decision Making interview interview Particulars Table 16 Any hurdles in selection process 90
  91. 91. S.No Particulars No. of. Respondents Percentage 1. Yes - - 2. No 100 100 Total 100 100Interpretation: From the above table 100% of the employee said ‘No’about the hurdles in selection process in the organization. Graph 16 Any hurdles in selection process 91
  92. 92. 120 100 100 80Percentage 60 40 20 0 0 Yes No Particulars Table 17 Recruitment process in ITC 92
  93. 93. S.No Particulars No. of. Respondents Percentage 1. Excellent 20 20 2. Good 70 70 3. Fair 10 10 Total 100 100Interpretation: From the above table 70% of the employees said Goodabout the recruitment process, 20% of the employee ‘Excellent’ and the 10%of the employees ‘Fair’ in the organization. Graph 17 Recruitment process in ITC 93
  94. 94. 80 70 70 60 50Percentage 40 30 20 20 10 10 0 Excellent Good Fair Particulars Table 18 Preference about promotion 94
  95. 95. S.No Particulars No. of. Respondents Percentage 1. Yes 100 100 2. No - - Total 100 100Interpretation: From the above table 100% of the employees said ‘Yes’about the promotion preference in the organization? Graph 18 Preference about promotion 95
  96. 96. 120 100 100 80Percentage 60 40 20 0 0 Yes No Particulars Table 19 Factors consideration 96
  97. 97. S.No Particulars No. of. Respondents Percentage 1. Subject 25 25 2. Willingness 20 20 3. Suitability 55 55 Total 100 100Interpretation: From the above table we conclude considered the selecting25% subject, 20% of selecting willingness and 55% of selecting insuitability. Graph 19 Factors consideration 97
  98. 98. 60 55 50 40Percentage 30 25 20 20 10 0 Subject Willingness Suitability Particulars 98
  99. 99. CHAPTER 5 FINDINGS &SUGGESTIONS 99
  100. 100. FINDINGS1. 10% of the respondents said that the vacancies in the internal organization are known through word of mouth2. Major source for recruitment is through internet only 20% said that recruitment is through ads.3. 20% of the employees are not satisfied with the recruitment procedure4. 20% was dissatisfied and 10% was recruited through the selection procedure5. 20% of the employees said that there is no career development in ITC Ltd.6. 50% of the employees reacted that they have worked for ITC for less than one year7. Most of the recruitment process is based on reference and not on the experience and qualification SUGGESTIONS 100
  101. 101.  Systematic and a common methodology should be opted for recruiting and selecting the employees. The steps in the process of selection should not very from employee to employee The system opted for remuneration should be changed Experience and qualification should also be considered at the time of selection Recruitment should be made in the manner, which helps in the development of the organizations. Check if the right person is being placed at the right place Induction programme should be made in time, but not too late. The process of selection should be the same for the employees of same designation and very according to the designations. Job rotation should be made according to the individual’s skill and qualification. QUESTIONNAIRE 101
  102. 102. Name………………………………………………………………………Employee No. …………………. Experience…………………………..Designation……………………… Department…………………………1. How do you recruit the employees? a) Internal b) External2. If external how do you recruit the employee? a) Through agencies b) Through reference c) Casual applications d) Data banks3. Is there any recruitment policy followed by your company? a) Yes b) No4. How will you inform the vacancy position of the job to internal conditions? a) Through word of mouth b) Notice boards c) Department heads5. What are the major sources for identification of candidates for recruitment? a) Through ads b) Internet c) Consultants6. Who are involved in the manpower planning? 102
  103. 103. a) Department heads b) HR Department c) Above two7. What are the recruitment sources for top-level management? a) Internet b) Internal Search c) Through ads d) above all8. How frequently do the companies recruit the employee? a) Quarterly b) Half yearly c) Annually d) whenever required9. What is your level of satisfaction regarding the present recruitment policy? a) Satisfied b) Needs Training10.Do you feel any improvements in the present recruitment process? a) Yes b) No11.What are the recruitment sources for middle level management? a) Internet b) Through ads c) Consultants e) Above all12.Does the company deserve the campus selection? a) Yes b) No 103
  104. 104. 13.Which type of interview do you follow for selecting the employees? a) Structured b) Unstructured14.Do you face any difficulty in recruiting the talent employees in LPG scenario? a) Yes b) No15.What type of interviews is to be conducted on selection process? a) Preliminary interview b) Group decision interview c) Decision making interviews16.Do you face any hurdles in selection process? a) Yes b) No17.What do you think about the recruitment process in ITC Limited? a) Excellent b) Good c) Fair18.Do you think the competent employees are preferred to promotions? a) Yes b) No19.What factors do you most consider while selecting the employees? a) Subject b) Willingness c) Suitability 104

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