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Human Resource Management

Introduction
Human Resource Management Revision Article Series
The human resources of an organization consist of all people who perform its activities.
Human resource management (HRM) is concerned with the personnel policies and
managerial practices and systems that influence the worforce. !n "roader terms# all
decisions that affect the worforce of the organization concern the HRM function.
The human resources of an organization consist of all people who perform its activities.
Human resource management (HRM) is concerned with the personnel policies and
managerial practices and systems that influence the worforce. !n "roader terms# all
decisions that affect the worforce of the organization concern the HRM function.
The activities involved in HRM function are pervasive throughout the organization. $ine
managers# typically spend more than %& percent of their time for human resource activities
such hiring# evaluating# disciplining# and scheduling employees. Human resource
management specialists in the HRM department help organizations with all activities related
to staffing and maintaining an effective worforce. Ma'or HRM responsi"ilities include wor
design and 'o" analysis# training and development# recruiting# compensation# team("uilding#
performance management and appraisal# worer health and safety issues# as well as
identifying or developing valid methods for selecting staff. HRM department provides the
tools# data and processes that are used "y line managers in their human resource management
component of their 'o".
Focus of HRM
)The HRM focus should always "e maintaining and# ideally# e*panding the customer "ase
while maintaining# and ideally# ma*imizing profit. HRM has a whole lot to do with this focus
regardless of the size of the "usiness# or the products or services you are trying to sell.+ (,r.
-ames Spina# former head of .*ecutive ,evelopment at the Tri"une /ompany). HRM is
involved in managing the human resources with a focus on e*panding customer "ase that
gives profit to the company. The "ottom line of the company is the focus of the HRM
department as well as the function
The Activities of HRM
The activities performed "y HRM professionals fall under five ma'or domains0
(1) 2rganizational design#
(3) Staffing#
(4) 5erformance Management and Appraisal#
(6) .mployee and 2rganizational ,evelopment# and
(%) Reward Systems# 7enefits and /ompliance
Ac8uiring human resource capa"ility should "egin with organizational design and analysis.
2rganizational design involves the arrangement of wor tass "ased on the interaction of
people# technology and the tass to "e performed in the conte*t of the o"'ectives# goals and
the strategic plan of the organization. HRM activities such as human resources planning# 'o"
and wor analysis# organizational restructuring# 'o" design# team "uilding# computerization#
and worer(machine interfaces fall under this domain.
Recruitment# employee orientation# selection# promotion# and termination are among the
activities that fit into the staffing domain. The performance management domain includes
assessments of individuals and teams to measure# and to improve wor performance.
.mployee training and development programs are concerned with esta"lishing# fostering#
and maintaining employee sills "ased on organizational and employee needs.
Reward systems# "enefits and compliance have to do with any type of reward or "enefit that
may "e availa"le to employees. $a"or law# health and safety issues and unemployment
policy fall under compliance component.
Importance of Study of HRM
.ven as line managers in any functional department# management students are liely to
manage people at some point in their career. Research shows that the manner in which
one conducts the human resource responsi"ilities of the management 'o" will "e the
ey for effectiveness and growth in one9s career.
2
TATA D!M
3
H"MA# R$S"R!$

A!%"ISITI# &R!$SS '
-27 A:A$;S!S
R./R<!TM.:T
S.$./T!2:
() A#A*+SIS 0
-o" analysis refers to the process of collecting information a"out 'o". -o" Analysis is
the procedure through which we determine the duties of the positions to "e staffed
and the characteristics of people who should "e hired for them. The analysis produces
information on 'o" re8uirements= this information is then used for developing 'o"
descriptions and 'o" specifications (i.e. 'o"9s human re8uirements# or what ind of
people to hire for the 'o")
&R!$SS F () A#A*+SIS'
Strategic /hoice
>ather !nformation
5rocess !nformation
-o" description
-o" specification
R$!R"ITM$#T '
Recruitment means to estimate the availa"le vacancies and
to mae suita"le arrangements for their selection and
appointment.
R$!R"ITM$#T &R!$SS'
4
Manpower planning'
Manpower 5lanning which is also called as Human Resource 5lanning consists of putting
right num"er of people# right ind of people at the right place# right time# doing the right
things for which they are suited for the achievement of goals of the organization. Human
Resource 5lanning has got an important place in the arena of industrialization. Human
Resource 5lanning has to "e a systems approach and is carried out in a set procedure.
5
The procedure is as follows0
Analyzing the current manpower inventory'
7efore a manager maes forecast of future manpower# the
current manpower status has to "e analyzed. ?or this the
following things have to "e noted(
1. Type of organization
3. :um"er of departments
4. :um"er and 8uantity of such departments
6. .mployees in these wor units
2nce these factors are registered "y a manager# he goes for
the future forecasting.
Ma,ing future manpower forecasts '
2nce the factors affecting the future manpower forecasts are nown# planning can "e done
for the future manpower re8uirements in several wor units.
The Manpower forecasting techni-ues
commonly employed "y the organizations are as follows0
i. .*pert ?orecasts0 This includes informal decisions# formal
e*pert surveys and ,elphi techni8ue.
ii. Trend Analysis0 Manpower needs can "e pro'ected through
e*trapolation
(5ro'ecting past trends)# inde*ation (using "ase year as "asis)#
and statistical analysis (central tendency measure).
iii. @or $oad Analysis0 !t is dependent upon the nature of
wor load in a department# in a "ranch or in a division.
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iv. @or ?orce Analysis0 @henever production and time period has to "e analyzed# due
allowances have to "e made for getting net manpower re8uirements.
Developing employment programs '
2nce the current inventory is compared with future forecasts# the employment programs can
"e framed and developed accordingly# which will include recruitment# selection procedures
and placement plans.
Design training programs'
These will "e "ased upon e*tent of diversification# e*pansion plans# development programs#
etc. Training programs depend upon the e*tent of improvement in technology and
advancement to tae place. !t is also done to improve upon the sills# capa"ilities# nowledge
of the worers
S$*$!TI# '
Selection is defined as the process of differentiating "etween
applicants in order to identify (and hire) those with a greater
lielihood of success in a 'o".
Selection is "asically picing an applicant from (a pool of applicants) who has the
appropriate 8ualification and competency to do the 'o"
S$*$!TI# &R!$SS
Screening of Applications '
5rospective employees have to fill up some sort of application forms. These forms have
variety of information a"out the applicants lie their personal "io(data# achievements#
e*perience# etc. Such information is used to screen the applicants who are found to "e
8ualified for the consideration of employment. 7ased on the screening of applications# only
those candidates are called for further process of selection who are found to "e meeting the
'o" standards of the organization.
Selection Tests '
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Many organizations hold different inds of selection tests to now more a"out the candidates
or to re'ect the candidates who cannot "e called for interview# etc. Selection tests normally
supplement the information provided in the application forms. Such forms may contain
factual information a"out candidates. Selection tests may give information a"out their
aptitude# interest# personality# etc.# which cannot "e nown "y application forms. Types of
selection tests areas follows0 Achievement test# !ntelligence test# 5ersonality test# Aptitude
test# !nterest test.
Interview '
Selection tests are normally followed "y personnel interview of the candidates. The "asic
idea here is to find out overall suita"ility of candidates for the 'o"s. !t also provides
opportunity to give relevant information a"out the organization to the candidates. !n many
cases# interview of preliminary nature can "e conducted "efore the selection the selection
tests. ?or e*ample# in the case of campus selection# preliminary interview is held for short
listing the candidate9s process of selection.
!hec,ing of References '
Many organizations as the candidate to provide the names from whom more information
a"out the candidates can "e solicited. Such information may "e related to character# woring#
etc. The usual referees may "e previous employers# persons associated with the educational
institutions from where the candidates have received education# or other persons of
prominence who may "e aware of the candidate9s "ehavior and a"ility.
&hysical $.amination '
5hysical e*amination is carried out to ascertain the physical standards and fitness of
prospective employees. The practice of physical e*amination varies a great deal "oth in
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terms of coverage and timings. Some organizations only have general chec up of applicants
to find out the ma'or physical pro"lems which may come in the way of effective discharge of
duties. !n the conte*t of timings also# some organizations locate the physical e*amination
near the end of the selection process# others place it relatively early in the process. This latter
course is generally followed when there is high demand for physical fitness.
Approval /y appropriate Authority '
2n the "asis of the a"ove steps# suita"le candidates are recommended for selection "y the
selection committee or personnel department. 2rganizations may designate the various
authorities for approval of final selection of candidates for different categories of candidates#
Thus# for top level managers# 7oard of directors may "e approving authority= for lower
levels# even functional heads concerned may "e approving authority. @hen the approval is
received# the candidates are informed a"out their selection and ased to report for duty to
specified persons.
&lacement '
After all the formalities are completed# the candidates are placed on their 'o"s initially on
pro"ation period may range from three months to two years. ,uring this period# they are
o"served eenly# and when they complete this period successfully# they "ecome the
permanent employees of the organization.

TATA I#D"STRI$S
!M&A#+ &RFI*$
9
I#TRD"!TI# F TATA 0R"&
Tata group "elieves in leadership with trust. Tata company operates in A "usiness sectors 0
/2MM<:!/AT!2: A:, !:?2RMAT!2:
T./H:2$2>;#.:>!:..R!:>#MAT.R!A$S#S.RB!/.S#.:.R>;#/2:S<M.R
5R2,</TS A:, /H.M!/A$S.
They are "y and large# "ased in !ndia and have significant international operations. The total
revenue of Tata /ompanies# taen together was C A&.D "illion (aroundRs.44%#446 crores) in
3&&D(&E with F6.AG of this coming from "usiness outside !ndia# and they employ around
4%A#&&& people worldwide. The Tata name has "een respected in !ndia for 16& years for its
adherence to strong values and "usiness ethics.
.very Tata company or enterprise operates independently. .ach of these companies has its
own "oard of directors and shareholders# to whom it is answera"le. There are 3D pu"licly
listed Tata enterprises and they have a com"ined maret capitalization of some CF& "illion#
and a shareholder "ase of 4.% million. The ma'or Tata companies are Tata Steel# Tata Motors#
Tata /onsultancy Services (T/S)# Tata 5ower# Tata /hemicals# Tata Tea# !ndian Hotels and
Tata /ommunications.
Tata Steel "ecame the si*th largest steel maer in the world after it ac8uired /orus. Tata
Motors is among the top five commercial vehicle manufacturers in the world and has
recently ac8uired -aguar and $and Rover. T/S is a leading glo"al software company# with
delivery centers in the <S# <H# Hungary# 7razil# <ruguay and /hina# "esides !ndia. Tata Tea
is the second largest "randed tea company in the world# through its <H("ased su"sidiary
Tetley. Tata /hemicals is the world9s second largest manufacturer of soda ash and Tata
/ommunications is one of the world9s largest wholesale voice carriers.
?ounded "y -amset'i Tata in 1DFD# Tata9s early years were inspired "y the spirit of
nationalism. Tata companies have always "elieved in returning wealth to the society they
serve. Two(thirds of the e8uity of Tata Sons# the Tata promoter company# is held "y
philanthropic trusts that have created national institutions for science and technology#
medical research# social studies and the performing arts. The trusts also provide aid and
assistance to non(government organizations woring in the areas of education# healthcare
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and livelihoods. Tata companies also e*tend social welfare activities to communities around
their industrial units. The com"ined development(related e*penditure of the trusts and the
companies amounts to around 6 per cent of the net profits of all the Tata companies taen
together
TATA D!M
TATA ,2/2M2 is Tata Teleservices $imitedIs (TTS$) telecom service on the >SM
platform(arising out of the Tata >roupIs strategic alliance with -apanese telecom ma'or :TT
,2/2M2 in :ovem"er 3&&D. Tata Teleservices has received a pan(!ndia license to operate
>SM telecom services# under the "rand TATA ,2/2M2 and has also "een allotted
spectrum in 1D telecom /ircles. TTS$ and has already rolled out its services in various
circles.
The launch of the TATA ,2/2M2 "rand mars a significant milestone in the !ndian
telecom landscape# as it stands to redefine the very face of telecoms in !ndia. Toyo("ased
:TT ,2/2M2 is one of the worldIs leading mo"ile operators(in the -apanese maret# the
company is clearly the preferred mo"ile phone service provider in -apan with a %& per cent
maret share.
:TT ,2/2M2 has played a ma'or role in the evolution of mo"ile telecommunications
through its development of cutting( edge technologies and services. 2ver the years#
technologists at ,2/2M2 have defined industry "enchmars lie 4> technology# as also
products and services lie the i(modeTM# mo"ile payment and a plethora of lifestyle(
enhancing applications. Today# while most of the rest of the industry is only "eginning to tal
of $T. technology and its possi"le applications# ,2/2M2 has already started conducting
$T. trials in physical geographies# not 'ust inside la"oratories.
,2/2M2 is also a glo"al leader in the BAS (Balue(Added Services) space# "oth in terms of
services and handset designs# particularly integrating services at the platform stage. The Tata
>roup(:TT ,2/2M2 partnership will see offerings such as these "eing introduced in the
!ndian maret under the TATA ,2/2M2 "rand.
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TATA ,2/2M2 has also set up a I7usiness and Technology /ooperation /ommittee#
comprising of senior personnel from "oth companies. The committee is responsi"le for the
identification of ey areas where the two companies will wor together. ,2/2M2# the
worldIs leading mo"ile operator# will wor closely with the Tata Teleservices $imited
management and provide now(how on helping the company develop its >SM "usiness.
,espite "eing a late entrant# Tata !ndicom# TTS$Is /,MA "rand# has already esta"lished its presence
and is the fastest(growing pan(!ndia operator. !ncorporated in 1EEF# Tata Teleservices $imited is the
pioneer of the /,MA 1* technology platform in !ndia. Today# Tata Teleservices $imited# along with
Tata Teleservices (Maharashtra) $td# serves over 4A million customers in more than 43&#&&& towns
and villages across the country offering a wide range of telephony services including Mo"ile
Services# @ireless ,estop 5hones# 5u"lic 7ooth Telephony and @ire(line Services.
12
HI$RAR!H+ &+RAMID F TATA D!M
)ARD F DIR$!TRS
MR. RATA: :. TATA
,esignation0/hairman
/ompany0 Tata Teleservices
$td.
MR. H. A. /HA<HAR
,esignation0Managing
,irector
/ompany0 Tata !ndustries $td
MR. A:!$ H<MAR SAR,A:A
,esignation 0Managing
,irector
/ompany 0 Tata Teleservices
$imited
MR. !. H<SSA!:
,esignation0,irector
/ompany0 Tata Sons $td.
MR. :. S. RAMA/HA:,RA
,esignation0,irector#
/ompany 0 Tata Teleservices $td.
13
MR. :. SR!:ATH
,esignation0 /.2 J M,
/ompany0Tata /ommunications $td.
,R. M<H<:, >2B!:, RA-A:
,esignation0M,
/ompany0 Tata Teleservices
Maharashtra
$td.
MR T2SH!:AR! H<:!.,A
,esignation0 Senior Bice
5resident
Managing ,irector >lo"al
7usiness ,ivision
/ompany0 :TT ,ocomo# !:/.
MR. H!;2SH! T2H<H!R2
,esignation0 Senior Bice
5resident
Managing ,irector of :etwor
,epartment
/ompany0 :TT ,ocomo# !:/.
MR. HAK<T2 TS<72</H!
,esignation0 .*ecutive Bice
5resident
/hief ?inancial 2fficer
/ompany0 :TT ,ocomo# !:
14

R$!R"ITM$#T 1 S$*$!TI#
&R!$SS AT TATA
T$*$S$R2I!$S
3TATA D!M4
R$!R"ITM$#T &*I!+
The actualize the organizational vision of providing )Trusted services to 1&& million chappy
customers "y 3&11+.Ac8uring and retraining high 8uality talent is the ey to an organizations
success. The recruitment strategy of TTS$ adopted for the same will mirror our corporate
image and enhance its "rand value.
The recruitment process is the most visi"le and dynamic way of organization9s o"'ective and
image outside.
)($!TI2$S
Systematically hire competent HR inline with HR strategies derieved from "usiness goals#
future growth plans and evolving roles and responsi"ilities of employees to eep pace with
changing dynamics of the organisation.
Hire HR with values similar to those advocated "y the organisation to ensure the right
organisational fit.
Adopt a continuous and conscious practice of e*ploring newer channels for sourcing the "est
talent in a cost effective manner.
5rovide opportunities to employees to apply for vacant positions in the company through
internal 'o"(postings# with a view to ena"le career growth for them.
!mplement merit "ased hiring practices that provides e8ual opportunity to all.
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Hire )/R!S5+ talent with re8uisite competence# sill set# nowledge and attitude to deliver
"usiness results today and tomorrow
R$!R"ITM$#T STRAT$0+
@hile hiring a TTS$ite# they loo for the
following attri"utes0(
! ( /ustomer ?ocus
R ( Result 2rientation

I ( !nitiative and Speed

S ( Self /onfidence

& ( 5assion for achievement
S"R!I#0 STRAT$0I$S
The following sources will "e used for identifying the
potential Human Resources for TTS$0
Recruitment consultants# .mployee Referrals# -o" portals# !nternal Resume ,ata"ase# ,irect
Recruitment( @al !ns# :ews 5aper Ads# /ampus Recruitment# ,ata "an# Boluntary
application# Referral from Tata ecosystem# Boluntary referrals from professional Agencies#
:>2s facilitation# etc
16
I#ITIATI# F R$!R"ITM$#T
Manpower )udget
The organization9s "usiness plans for the fiscal year originates from the long term "usiness
o"'ectives of TTS$. .ach function defines its manpower re8uirements "ased on the strategic
o"'ectives set down for achieving the annual "usiness o"'ectives for the function. The
finance function analyses the cost incurred in the hiring of manpower. /orporate HR with
circle HR discusses the manpower re8uirement with the heads of each function to rationalize
the manpower to control additions and cost.

Hiring &lan
?ollowing this# the hiring plan for entire year is charted out. This plan lays down the :um"er
of employees to "e hired on a monthly "asis at each level# location and function. The
manpower "udget is reviewed if any revision in "usiness plan taes palace. There is no carry
forward of "udgeted manpower from one year to another year. Thus# there may "e a change
in the manpower needs pro'ected initially# and the same gets changed on changes in "usiness
plans during the course of the year.
Drivers of Recruitment
!n addition to the "udgeted re8uirement for manpower# there may "e some other drivers of
recruitment i.e. ReorganizationLRestructuring which arises
from merger# ac8uisition or e*pansion can stimulate a need for recruitment.
(o/ Descriptions
A ey input for recruitment is an inventory of all sill sets and competency levels for
e*isting positions in all functions. These prere8uisites for a position are translated into 'o"
descriptions -o" ,escriptions (-,s) descri"e the wor performed# responsi"ilities involved#
17
e*perience profile# sill. -,s give an understanding of the tass performed and the type of
8ualification re8uired to perform them.
Advertisements
5lacing advertisements in the newspaper is a method of recruiting e*ternal applicants# to "e
used in specific cases such as wal in9s# special positions etc.
Since potential candidates are first introduced to the company through advertisements# this
helps in "uilding a positive image. .ither TTS$ or the vendor can release an advertisement
for vacancies.
@hen TTS$ releases the advertisement .This source is used for hiring for M% J a"ove
levels. ?or this an advertisement copy should "e prepared 'ointly and "een approved "y "oth
the hiring function and HR. All advertisements to "e approved and ratified "y /orporate HR
J /orporate MAR/2M prior
to release.
The advertisement should'
a. Meet the criteria set "y the company for release in the print media.
". 7e "rief# precise and consistent with 'o" specifications and the selection criteria. !t must
specify the e(mail addressLfa* num"erLaddress where applicants can send their /Bs.
c. Attract the interest of potential and suita"le applicants.
d5 Have the following details'
Summary of TTS$9s "usiness
$evelLTitle and location of position
5osition code for each 'o"
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-o" specifications in terms of sills #e*perience and 8ualification re8uired
/losing date of applications
(o/ &ortals
$eading 'o" portals lie :auri# Times 'o"# Monster etc. Should "e used to get /B9s for
closing positions at the level of M3 to MD. corp M TA will maintain an annual matri* of
usage of these portals "y circle J will also circulate usage on a 8uarterly "asis.

TTS* 6e/site
2pen positions up to M3 level should "e put on the TTS$ we"site for
seeing profile from interested applicants from e*ternal world.
All open positions which are to "e put on TTS$ we"site will "e done so on
approval of /orporate M TA head
S$*$!TI# &R!$SS
Having received the applications# the ne*t step is to evaluate applicants e*perience and
8ualifications and mae a selection.
Screening !ts purpose is to evaluate the application and eliminate applicants whose
profiles do not match the 'o" re8uirements.
Short7listing of !2s
The /Bs received from various sources are screened "y the HR function within A day of
commencement of sourcing activity.
8nowledge 1 Aptitude Test 9 for campus
!t is conducted for all trainees and laterals recruits in the level of MF J MD through a testing
agency of repute decided and finalized from corporate office. The result of test will "e
criteria for short listing L screening candidates for the purpose of interview.
&sychometric Test'
19
This test is done to find out the )/R!S5+ fit.
Interview
This is powerful techni8ue used to assess the capa"ilitiesLsills of the candidate and to
understand the softer aspects that a difficult to measure from resumes.
After finalizing a date and time# short(listed candidates are invited for an interview.
$valuation of candidate
The candidate interviewed are evaluated against the various parameters indicated in the
!nterview Assessment Sheet which has to "e filled(in and signed "y all mem"ers of the
interview panel.
FI#DI#0S FRM TH$ ST"D+
Tata Teleservices $td. (TTS$) has a clearly stated Recruitment J
Selection 5olicy.
The num"er of estimated new hires in recruitment 3&1& is 3%.
TTS$ prefer internal source of recruitment "ecause employees in the organization get
the opportunity within the organization# it has "etter growth prospects.
.ffectiveness of recruitment process analyzed through Nuality
Metrics0
Su"mittal efficiency of TTS$ recruitment process is D4.44G.
!t seems that they are doing well
!nterview efficiency is 1&G.
The offer efficiencies is 1&&G i.e. all the selected people
accept the offers.
Referral rate at TTS$ is AFG.
Sourcing efficiency analysis through Nuality Metrics0
DG of candidates hired from !nternal -o" postings
13G from /B data"ase
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6G from off role employees
AFG of candidates hired from employee referral. So employee referral
scheme is most prominent in this recruitment season.
.ffectiveness of Recruitment process analyzed through /ost
Metrics0
TTS$ outsourced a company called Auth"ridge for
verificationL reference chec of its new hires. !t taes 13&& Rs. Lcandidate. Total e*pense for
verification is 4&#&&& in 3&1&.
2ther cost associated with this recruitment 3&1& is Referral amount paid to the
employees "ecause 1E out of 3% new hires through employee referral.
Management level "ased analysis0
1FG candidates hired at higher level management#
6G candidates hired at lower level management#
7ut D&G candidates hired at middle level management# it
shows that higher num"er of vacancies found at middle level in this recruitment season.
!f a candidate hired through employee referral scheme in return employee would get
some referral amount. The referral amount increases with the increase in the
management level at which employee gets selected.
,epartment "ased analysis0
EF G employees are hired in sales department#
2nly 6G employees are hired in mareting department.
There is no hiring in any other department.
>ender "ased analysis0
DDG male candidates are selected in recruitment 3&1&.
13 G female candidates are selected.
To hire higher level management# they prefer advertisement and
recruitment consultants.
The cost of recruitment consultants is appro*. DG of total /T/ at M4 J "elow levels
and appro*. 13G of total /T/ at M4A J a"ove level.
Top 4 recruiting challenges are as follows 0(
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Nuality recruitment
Retention of newly hired candidates
Hiring of senior level management employees
5rovide travel entitlement for outstation candidates who are
appearing for the interview.
5rovide medical tests reim"ursement to the employees
R$!MM$#DATI#S
The interview efficiency of TTS$9s Recruitment J Selection 5rocess is 1&G# which
is less than the optimum (1FG# selecting 1 out of F candidates) interview efficiency
so they should investigate their process. !t may "e possi"le that recruiters are overly
selective. So tae care a"out this efficiency.
The offer efficiency is 1&&G# it can "e too high "ut 1&&G means perhaps you are
giving too much salary to the new hires or any other factor is associated with it so
new hires don9t deny your offer.
.ven though you hires from the e*ternal source# the main source of recruitment is
internal "ut you should have loo towards the e*ternal world to hire new pool of
talent. So that candidates from e*ternal world can also wor with you.
22
23

H"MA# R$S"R!$ TRAI#I#0 A#D D$2$*&M$#T
!"*T"R$ F *$AR#I#0 AT TATA
$iving and woring at the cutting(edge as we do# eeping a"reast of new technologies and
ac8uiring new sills is not an option# itIs a must. That is why we lay so much emphasis on
training and development at TATA.
:o matter the sector it operates in or the industry where it functions# every Tata group
company sets aside a significant amount of resources to train and develop its people.Training
and development are a critical component of our HR creed.
All new recruits at TATA are inducted into the organisation through a structured training
programme involving technical training at our staff training college and training in soft sills
"y a 8ualified HR team. The learning process does not stop once the induction phase is
complete= if anything it gets intensified# and continuously so.
2ur HR policy provides for a minimum of si* days of training a year for all our employees.
:on(e*ecutive employees are trained in personal and professional effectiveness# engineers in
developing good communication sills# and front(line e*ecutives in maing incisive "usiness
presentations.
.*ecutive development courses are held for staff with supervisory responsi"ilities=
managerial employees undergo training for management# development# pro'ect management
and cultivating interviewing sills= and senior managers are sponsored for advanced
management development programmes in leading institutions.
24
$M&*+$$ D$2$*&M$#T &R0RAMM$ AT TATA
TATA has an online# we"(ena"led performance management system called ISonarFI# or
system for performance evaluation and employee development# which evaluates and
develops the potential of our employees. SonarF helps every"ody at TATA move ahead that
much faster.
@e utilise SonarF as a tool for managing performance planning and motivating# evaluating
and enhancing the performance of our employees. This system sees to esta"lish and
maintain an environment that supports our "usiness processes and ensure that employee
performance is evaluated against the achievement of o"'ectives that are aligned to the
companyIs goals.
The training vertical plays a ey role in giving direction to the e*cellence initiative within
the Tata group. Tata Nuality Management Services carries a variety of training programmes
for Tata managers in !ndia and a"road all through the year. The various programmes aim to
develop "usiness e*cellence champions for the assessment process# sharpen the assessment
sills of assessors to meet the growing and changing needs of assessment within the Tata
group.
The training o/:ectives for the year ;<<=7>< were as follows0
.nsure "usiness(oriented 8uality feed"ac in e*ternal assessment (participation of
high performing Tata e*ecutives in assessor programmes)
$aunch new learning management system and we" "ased training programmes.
$aunch case study and Tata 7usiness .*cellence Management (T7.M) Reference
Manual 3&1&
.nsure availa"ility of T7.M Reference Manual 3&1& in identified languages
!mplement the training "udget and the training calendar
25
!ncrease domestic Oe*tended arms9 "ase and develop a similar "ase across every
international entity for internal awareness and certification.
Highlights
The highlights of the year were'
The international customised training programmes saw improved participation of
overseas assessors. The programmes have evolved in a manner that supports the
aspirations of overseas companies to participate in T7.M assessments.
:um"er of international training programmes increased to 4F from 34 last year.
The num"er of training programmes increased during the year and they were
organised under the categories0 assessor training and e*cellence development.
The e*cellence development programmes covered important topics lie
continuous improvements# T7.M awareness for senior leaders and
practising "usiness e*cellence.
Training programmes were taen closer to the participants= TNMS conducted training
programmes at 1A locations in !ndia and 16 in other countries.
26
A we"("ased training programme P a primer for people attending assessor(training
programmes P was released on a /,.
?irst on(site training programme on 7.$5 with 3D participants held in 7oston# <S.
Training and assessment programmes "ased on the new integrated T7.M criteria for
3&1& rolled out.
The road ahead
For the year ahead? the training team plans to'
?urther increase the num"er of training programmes for overseas assessors.
$aunch a new learning management system.
!ncrease 8uality trainers.
.nhance training programmes to produce not 'ust good assessors# "ut good managers
too.
27
7elieving that a happy worforce is a productive worforce#
Tata Steel has always e*tended its support to the cause of employee welfare and
development there"y ensuring an enriched life for all its people.
At Tata Steel# there is a continuous effort of staying in touch with employees to ensure that
there is the right culture to engage them in consistent performance improvement. There are
well(esta"lished and effective arrangements at each "usiness location for transparent
communication and consultation with @ors /ouncils and Trade <nion representatives.
?urther# the /ompany has always registered steady 8uality improvement and productivity
enhancement through dedicated efforts of the /ompany9s 5erformance !mprovement teams#
focused on technical "est practice transfer and the value of nowledge networs.
28
Towards the well("eing of employees Tata Steel has put into practice many initiatives#
events and programmes that have helped to create not only an enduring loyalty amongst
employees "ut also ena"led them to have a more fulfilled life. Tata SteelIs 5erformance
Management System has the following aims0
Align the activities and "ehaviour of the worforce with /ompany values and
o"'ectives
Assess the performance of individuals comprehensively and fairly
,evelop the capa"ilities of employees to enhance performance
,evelop corporate culture
.nhance line management relationships

all collapse all
S&$!IA* )$#$FITS &R2ID$D T $M&*+$$S
Medical facilities' ?ree medical facilities for employees and their family# which continues
even after retirement.
Housing facilities' Su"sidised electricity# water and housing facilities to all employees.
Higher studies' Monetary incentives to employees ac8uiring higher 8ualifications in a
related field along with study leave# scholarships etc. when necessary.
Holiday Homes0 Tata Steel has five holiday homes for "enefit of employees during vacation.
Tata Steel fficers@ )each !lu/0 All officers of Tata Steel are eligi"le to "e mem"ers of the
7each /lu" that offers holidays in elite hospitality chains.
Family )enefit Scheme0 !n the tragic case of a fatality in the @ors# a monthly pension
e8ual to the amount of the last drawn salary of the deceased is given to the legal heir until the
time the deceased would have attained the age of F&.
29
TRAI#I#0 &&RT"#ITI$S
At Tata Steel# the process of training and development is focused on needs and outcomes
with the o"'ective of technical and managerial competency "uilding. The /ompany recently
adopted the Toyota concept of the O?our Nuadrant Method9 across the organisation# in which
the critical sills re8uired to perform a 'o" are identified and the employees are mapped
against those sills "y the 5ositional Training ?acilitators# mentors or immediate supervisors.
Training needs are identified on the "asis of the gap "etween desired and e*isting sill levels
and training is imparted accordingly. The process also provides a managerial tool for
reviewing training effectiveness.
The training and development needs of the worforce are assessed regularly# for officers
with a 5ersonal ,evelopment 5lan (5,5) and for non(officers with a Training :eeds Survey
(T:S). The process for addressing training and development needs follows this method0
A&G ( 2n(the('o" inputs
3&G ( /onversations# Mentoring and /oaching
1&G ( /lassroom training

TRAI#I#0 FA!I*ITI$S
Tata Steel has in(house training facilities "oth for technical and managerial training# through
the Technical Training !nstitute and Tata Management ,evelopment /entre (TM,/)#
respectively. Advanced level training re8uirements# "oth technical and managerial# are met
through e*ternal programmes.
D$2$*&I#0 &$&*$
Baluing its people as a great asset# Tata Steel is committed to their development# "oth in
order to "enefit the individual and to "enefit the /ompany through increased nowledge and
sills. !n order to leverage ma*imum potential of human resource to achieve "usiness
30
o"'ectives the /ompany recognises that enrichment of people will help retain a motivated
worforce in a competitive environment.

S,ills Development 7 #on7officers
Sills training is a process that "egins at the time of an employee 'oining the company and
continues throughout his or her career. .mployees wor in clusters of multi(silled worers
and move across and within clusters on improving their sills levels. The Technical Training
!nstitute imparts vocational and "asic sills training= the departments impart on(the('o"
training.
!n order to promote self(directed learning# the /ompany has introduced e(learning where"y
employees can access electronic courses from their departmental e($earning centres.
S,ills Development 7 fficers
Tata Steel Management ,evelopment /entre conducts a num"er of managerial and
functional competency "ased programmes for officers and supervisors. The o"'ectives of
these programmes are0
To "uild individual capa"ility "y enhancing managerial and functional competencies
which are critical to operations# service and support functions.
To "uild a leadership pipeline in the organisation to prepare the people to meet the
challenges of growth# glo"alisation and change.
$-ual pportunity &ractices
Tata Steel is an e8ual opportunity employer and does not discriminate on the "asis of race#
caste# religion# colour# ancestry# marital status# se*# age or nationality. The /ompany9s
Affirmative Action 5olicy promotes e8ual access to its employment and opportunities and all
decisions are merit "ased. Respect for e8ual opportunities as set out in the Tata /ode of
/onduct is followed. The HR 5olicy and Affirmative Action 5olicy are monitored "y the
.thics /ounsellor and supported "y an effective grievance redressal mechanism.
31
Tata Steel encourages female employees to advance their career with initiatives dedicated
towards personal development and professional advancement. The @omen .mpowerment
/ell e*amines and addresses the issues and concerns of female employees and ensures that
they do not miss out on any growth opportunity.

Apart from the ongoing ITe'aswiniI programme# an innovative scheme undertaen "y Tata
Steel in the past few years is the introduction of a ?emale Trade Apprentice course. Selected
candidates are trained in various trades such as fitter# machinist (metal cutting) and
electrician. 2n successfully completing the course# these young women are deputed to
various departments as re8uired.

Freedom of association and collective /argaining
Tata Steel respects the employees9 right to e*ercise freedom of association and collective
"argaining and provides appropriate support for this. There is an esta"lished system of 'oint
woring and collective "argaining# which ensures that every employee is a"le to e*ercise this
right without any fear. 5ioneering the concept in !ndia# a system of -oint /onsultation has
"een in place in Tata Steel for more than %& years.




32
A&&RAISI#0 A#D IM&R2I#0 &$RF&RMA#!$
Ma,ing Appraisal Systems 6or,
,oes your Appraisal System @orQ /an Appraisal System wor as a method of retaining
human power and wor as a strategy for "uilding cultureQ
.ach year# employees and their immediate "osses enter into an ela"orate gaming e*ercise
called the annual performance appraisal. Most of it is form filling# and yet every company
goes through the ritual. !t9s time to reappraise appraisal systems. Appraisal systems re8uire
constant re'uvenation and renewal. !f appraisal systems have to serve
developmental purposes without creating any insecurity or defensiveness we need to learn to
treat employees with a shade more dignity. ,espite widespread attention and resources
performance appraisals remain an area with which few managers or employees are satisfied.
!s it# that we don9t have a good enough system yet or is there an intrinsic pro"lem with
performance appraisals# or is it 'ust human nature to dislie or disagree with systems that we
already haveQ
AThe real voyage of discovery consists not in seeing new landscapes /ut in having new
eyes5B
7777Marcel
&roust AMa:or component of the emerging HR agendas is creation of the cultural
mindset5B
77776ayne )roc,/an,
.ach year people get into the ritual of form filling and most often they are not happy and
wish to 8uit or present themselves as demotivated and appear cynical a"out the entire
e*ercise. The 8uestion is# when there is so much of cynicism and unhappiness over the whole
issue why have it at allQ 7ut without it or in its a"sence it is difficult to get
33
the wor done "y people. This is one mechanism "y which managers get wor done "y their
su"ordinates and can control them. Thus "osses strive to get "etter ratings on their own
performance "y assessing the performance of their su"ordinates and thus control their
"ehavior. The su"ordinates usually complain that their "osses try and assess
their "ehavior without nowing the constraints under which they wor. The author in her
e*perience of conducting research and training in this area has found that satisfaction with
current appraisal systems in industry is as low as 6FG across all industries. This is due to
attri"utes such as potential and performance are not "eing taen into account during the
appraisal process and much importance is given to mathematical 'udgments of a person9s
contri"ution .The common statements made "y most su"ordinates are0 Owhat gets measured
gets done9 J )The means to an end is as important as end itself+ "ut# how many of us
e*perience this in organization. The component Ohow9 is important and this can only "e
improved through communication. !f people are most important aspects M as the clichR goes
Mit is important to improve corporate performance "y motivating them to put in their "est
efforts. This means rewarding and recognizing their contri"utions in a way that is meaningful
to them and ensuring that rewards and recognition together results in higher returns on
(human) investment. The "est way to achieve "oth o"'ectives M rewards J R2! M is to have
the right metrics in place to measure employee performance. There is some merit in most
appraisal systems# "ut
almost all of them appear to "e e8ually flawed.The ne*t 8uestion is0 How can one reduce the
su"'ective element of appraisal systemQ Appraisal is a tool to "uild culture (openness J
transparency). Appraisal systems fail if goals J performance metrics are often not clearly
defined. At $># the appraisal system has three parameters M performance# attitude and
nowledge. At Tata Teleservices Appraisal System and its fairness showed C<D in ;<<>?
=<D in ;<<E5 *in,age /etween Appraisal and Rewards' C>D and CFD. Reward aims to
enhance 'o" performance# to retain valua"le employees and develop the corporate unit.
!ntrinsic rewards create a sense of security# lead completion of some process and allow the
individual to use a variety of developed sills and a"ilities. 2n the other hand# the e*ternal
purpose of the reward system is to attract a large num"er of la"orers who are silled and
proficient in their respective 'o"s..The reward systems in hierarchical organization act as a
strong motivation to learn those sills that are perceived to lead to promotion. !f the reward
system is o"'ective# transparent and communicated properly it can also contri"ute to the
overall culture and climate in the organization. ,epending on how reward systems are
34
developed# administered and managed# they may cause the culture of an organization to a
large e*tent. The reward system should "e designed to promote the ind of performance
needed "y an organization .The system should support the "ehaviors e*pected of the
employees. Therefore# it must communicate the type of "ehaviors to "e rewarded and the
way in which it will "e rewarded. The reward system should "e strengthened through re(
organization of wor process and enlarged 'o" responsi"ilities# communications and
participatory system.. Another flaw in most systems is that giving feed"ac on employee
performance "ecomes a one(time event. >iving feed"ac should "e a continuous process in
companies and should not "e relegated only to the year end. As said previously appraisal
systems also fail as goals and performance metrics are often not clearly defined. !f goals are
not aligned to all the departments and functions of an organization# this will result in lac of
ownership of crucial goals across departments. /ompanies in such situations would not have
information on its people for assigning more challenging tass and new "usinesses. The ne*t
set of 8uestions pertain to what are the common sets of weanesses on which employees
have to "e trainedQ How to improve the performance of under performersQ Most employees
in companies want performance driven culture "ut are not willing to accept lower pay for
lower performance.
&urpose of &erformance Appraisal
Most people feel that appraisal is only a means to give increments and not a tool for
development or culture "uilding or a means to help individual "uild his career path in the
organization. 7ut performance appraisal has many facets. !t is an e*ercise in o"servation and
'udgment# it is a feed"ac process# and it is an organizational intervention. As a measurement
process it is an intense emotional process. :ot surprisingly# it is seen as effective in less than
1&G of the organizations that use it. !n view of such widespread dissatisfaction# why do
appraisals continue to "e usedQ
Appraisals provide legal and formal organizational 'ustification for employment
decisions to promote outstanding performers
Appraisals are used as criteria to test validation i.e.# to test that performance influence
appraisal results.
Appraisals provide feed"ac to individual for career development.
35
Appraisals help in identifying training needs and also esta"lishes o"'ectives for
training programs.
Appraisals help diagnose organizational pro"lems "y identifying training needs and
"y identifying effective and ineffective performers.
&erformance Management System
The operation may have succeeded# "ut the patient died.( 7y anonymous
Most performance management systems are significantly flawed and don9t deliver the results
e*ecutives see. !t is lie a compass= one that indicates a person9s actual direction as well as
person9s desired direction.
!t re8uires willingness and a commitment to focus on improving performance at the level of
the individual or team every day.The "road process of performance management re8uires the
following0
Direction0 /larity of vision# strategy and o"'ectives. This provides focus and
channels efforts in the right direction.
Awareness0 is to improve performance. ?eed"ac to include appreciation and
suggestions for improvement. ?eed"ac should motivate the employee to perform
"etter.
Support' .mployees need support to wor on their improvement areas.
2rganizations should provide
training# coaching to improve their performance
Rewards' 5ositive reinforcement is given through rewards and recognition for
employees.
&erformance Reviews
The performance review meeting is the "asis for assessing the three ey elements of
performance namely= contri"ution# competence and continuous development. !t gives
managers with their teams and the individual mem"ers of their staff the opportunity to pause
after the hurly("urly of everyday life and reflect on the ey issue of personal development
and performance improvement. !t is a means of ensuring the two(way communication on
36
issues concerning wor can tae place# and it provides the "asis for future wor and
development plans. !n reality in most organizations the managers are giving reviews "ased
on their performance which is already over "ut they are
trying to "uy the employee loyalty for the ne*t yearObjectives of PA
Motivation0 To encourage people to improve their performance and develop their
sills.
Development' To provide a "asis for developing and "roadening attri"utes and
competencies relevant "oth to the current role and any future role the employee may
have the potential to carry out.
!ommunication' To serve as a two(way channel for communication a"out roles#
o"'ectives# relationships# wor pro"lems and aspirations.
&erformance counseling
5erformance counseling can "e defined as the help provided "y a manager to his
su"ordinates in analyzing their performance and related 'o" "ehaviors in order to increase
their 'o" effectiveness. 5erformance counseling focuses on the entire performance (tass and
"ehaviors) during a particular period rather than on a specific pro"lem.
1. /ommunication0 !nvolves "oth receiving messages (listening) giving messages and giving
feed"ac. /ounselors do all three things.
3. /ounseling also involves influencing the counselee in several ways.
4. This influence ena"les the person to e*ercise more autonomy# positive reinforcement
6. Strengths and weanesses identified have to "e supported with e*amples during the last
one year. Thus appraiser cannot 'ust list it without giving any thought. !nterpersonal
feed"ac is an important input for increasing self awareness. !t helps in reducing the "lind
area of a person# helping him to "ecome more aware a"out his strengths
and weanesses. !f properly used# it results in higher mutuality "etween two persons.
%. ?eed"ac will "e effective if the person who gives the feed"ac ( counsellor ) maes sure
that it is0
37
,escriptive and not evaluative# focused on the "ehaviour of the person and not on the
person himself
,ata "ased and specific and not impressionistic
Reinforces positive new "ehaviour
Suggestive and not prescriptive
/ontinuous
Mostly personal# giving data from one9s own e*perience
:eed("ased and solicited
!ntended to help
?ocused on modifia"le "ehaviour
Satisfies needs of "oth the feed"ac given and one who receives feed"ac.
/heced and verified
@ell timed= and
/ontri"utes to mutuality and "uilding up relationship
There are some organizations which also go for performance audit to chec the efficiency#
effectiveness and compliance of the entire 5erformance management system. !f the
dissatisfaction level is less than A& percent then necessary changes are "rought a"out.
Supporting e.ample
38
1. The Tata townships in -amshedpur# Mithapur# 7a"rala# Mathigiri and elsewhere are
epitomes of communal e*istence
3. The volunteering and community wor that have now "ecome a ritual in Tata
companies fulfil an important employee o"'ective
39
4. 5rogrammes such as TAS and institutions lie the Tata Management Training
/entre have "een revamped and reengineered to reflect the re8uirements of the present


MAI#T$#A#!$ F H"MA# R$S"R!$
40
MAI#T$#A#!$ F H5R
TATA ,2/2M2
S Type 0( -oint Benture
S !ndustry 0( Telecommunications
S ?ounded 0( :ovem"er 3&&D
S Head8uarters 0( :ew ,elhi# !ndia
S Area served 0( !ndia
S Service 0( Mo"ile networ
S 5arent 0( Tata Teleservices (A6G)
J :TT ,ocomo (3FG)
!"*T"R$ F TATA'

Tata is a 752 company J it is "ecome very important to maintain the turn over rate of the
organization.
Tata is very famous for their maintenance of human resource (employees).the culture J
woring conditions are so good that motivate their employees to wor harder..
() $2A*"ATI#0
41
-o" evaluation is an attempt to determine the demands or the position of the employee in the
'o" hierarchy.
)-o" evaluation is an effort to determining the relative value of every 'o" in plant to
determine what the fair "asic wage for such a 'o" should "e.+
(8IM)A** 1 8IM)A**
)($!TI2$S F () $2A*"ATI#'
To maintain complete J accurate description of each 'o" or occupation.
To provide a standard procedure to determine the relative worth of each 'o".
To ensure that fair wages is paid to all 8ualified employees.
To provide an accurate J fair consideration of all employees.
To provide information for selection placement Jtraining of employees.

&R$*IMI#AR+ R$%"IR$M$#TS F () $2A*"ATI#'
-o" analysis is done to "ring out the facts a"out the tass responsi"ility types of personnel
re8uired sill J e*perience needs etc. for each 'o"
Implement :o/ evaluation
( -o" evaluation finds the relative worth of a 'o" which is very important in a H.R. firm
lie TATA.
( !ts main aim is to determine the wage rates for diff. 'o"s.
( !t assesses the 'o".
42

Select the :o/ evaluation method0
,etermine the parameters on which you evaluate the 'o" performance of your .
employees.
!ommunication with employees0

To evaluate the 'o" performance or the wages or incentives it is very important to now
a"out the atmosphere of our organization J its "est way is regularly communicate
with the employees.
I#!$#TI2$S 1 R$6ARD S+ST$M
)@ages J !ncentives are e*tra financial motivation. They are designed to stimulate human
effort "y rewarding the person over J a"ove the time rated remuneration for improvements
in the present or targeted result.+
So the I#!$#TI2$S are0
)Monetary "enefits paid to worers for their outstanding performance.+
$ie0
!ommission'
/ommission is a varia"le component of compensation pacage. !t is given on the "asis
of "usiness generated "y the employees. !t is a pre fi* component.
)onuses'
7onuses are given to employees on a pre esta"lished goal or criterion. The organization
set policies regarding the "onuses.
Maturity curves5 Maturity curves incentives plan considers the e*perience J
performance of an employee for giving out the incentives
43
0ain sharing5
>ain sharing incentives plans undertae those employees who give outstanding
performance J provide for cost saving measures.

&rofit sharing5
These plans are practiced in retail J ?M/> sectors. 2ther sectors too implement
the plan "ased on organizational policies. it refers to giving out the shares of profits#
the organization earned..
Stoc, option5
Stoc option plans grant to employees the rights to purchase a specific no. of shares
of the company9s stoc at a guaranteed price (the option price) during a designated
time period.
!onclusion
The Recruitment and Selection 5rocess is one of the "asic HR processes. Recruitment J
Selection is very sensitive as many managers have a need to hire a new employee and this
process is always under a strict monitoring from their side. HR management is a part of
every manager9s responsi"ilities.
These responsi"ilities include placing the right person in the right 'o"# and then orienting#
training# and compensating to improve his or her 'o" performance.
Tata Teleservices uses two sources of recruitment M internal and e*ternal source. 7ut they
prefer internal source "ecause it gives opportunity to employees within the organization.
After recruitment Selection process taes place. This entails esta"lishing the "est fit "etween
'o" re8uirements and the candidate9s profile. Selection process includes screening# interview
and various tests. Then offer is made to the candidate if heLshe accepts it employee
44
undergone through various pre( employment activities lie reference chec# medical tests#
etc.
!t is imperative to have an efficient and responsive tracing mechanism to evaluate the
impact of recruitment on the top line and "ottom line. Metrics not only help in evaluating the
ro"ustness of internal processes "ut also provide inputs on customer satisfaction and vendor
evaluation parameters. Barious metrics lie M 8uality metrics# time metrics# cost metrics J
Review process is used to find out the effectiveness of recruitment processes.
@hile 5erformance management has "ecome more and more sophisticated in recent decades#
every system has its
own limitations. There is no perfect system that can "e adopted without modifications in any
company. There is some
merit in most appraisal systems "ut which one can "e used easily to suit your organization is
most important. Always
"enchmar the "est practice "ut tae the "est fit. !f used properly it can wor as a powerful
tool for "uilding culture and help reduce attrition to a large e*tent
)I)*0RA&H+
6e/site7 www5google5com
www5tatadocomoindia5com
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