SIP Format2014-15
SIP Format2014-15
SIP Format2014-15
on
A STUDY OF EFFECTIVENESS ON
HUMAN RESOURCE DEVELOPMENT IN
GLOBUS STORE PVT. LTD
Submitted in partial fulfillment for the award of the
Post Graduate Diploma in Management
Submitted by
REENA AWASTHI
Roll No: M201434
Batch: 2014-16
Under the guidance of
Name of the Faculty Guide
DECLARATION
The work in this summer internship project report is based on the original work
carried out by me towards the partial fulfillment for the award of Post Graduate
Diploma in Management. No part of this report has been submitted elsewhere
for any other degree or qualification and it is all my own work.
(REENA AWASTHI)
Roll No. M2014034
CERTIFICATE
This is to certify that REENA AWASTHI Roll No M2014034 , a student of
Apeejay Institute of Technology-School of Management & Computer
Science, Greater Noida (PGDM 2014-2016) has done the project on
A Study Of Effectiveness On Human Resource Development In Globus
Stores Pvt. Ltd.
any
other
Institute/University
for
award
degree/Diploma/Certificate.
Prof. D. N. Bajpai
(Executive Director)
of
any
other
ACKNOWLEDGMENT
I, here by take the opportunity to express my deep and profound gratitude to
( Dr. Supriya Gupta ), my faculty guide for this project report, without whose
help my report would not have been a success.
I would also like to thank Mr. Deepak Kumar
Last but not least, I would like to thank my parents and my friends for their
support and help during the execution of the study.
All may not have been mentioned but none is forgotten.
( Reena Awasthi )
TABLE OF CONTENT
CONTENTS
Declaration
Company Certificate
College Certificate
Acknowledgment
List of Tables
List of Figures
List of Abbreviations
Page No.
i
ii
iii
iv
v
vi
vii
1. Introduction
1.1 About the Topic
1.2 Objectives
1.3 Research Methodology
1.4 Limitations
2. Company Profile
3. Data Analysis
4. Findings
5. Suggestions
6. Conclusion
7. Bibliography
Appendix (Questionnaire)
a1,a2
INTRODUCTION
In 1970, Leonard Nadler published his book Developing Human Resources in which he
coined the term human resource development (HRD). Human resource refers to the talents
and energies of people that are available to an organization as potential contributors to the
creation and realization of the organizations mission, vision, values, and goals.
Development refers to a process of active learning from experience-leading to systematic
and purposeful development of the whole person, body, mind, and spirit. Thus, HRD is the
integrated use of training, organizational and career development efforts to improve
individual, group, and organizational effectiveness.
In simple terms, training and development refer to the imparting of specific skills,
abilities, and knowledge to an employee. training and development may be
understood as any attempt to improve current or future employee performance by
increasing an employee's ability to perform through learning, usually by the
changing the employee's attitude or increasing his or her skills and knowledge. The
need for training and development is determined by the employee's performance
deficiency , computed as follows :
Training and Development need = Standard performance - Actual
Performance
Development refers to those learning opportunities designed to help employees
grow . Development is not primarily skill -oriented .Instead, It provides general
knowledge and attitudes , which will be helpful to employees in higher positions .
efforts towards development often depend on
Definitions of HRD:
1. According to South Pacific Commission human resource development is equipping
people with relevant skills to have a healthy and satisfying life.
2. According to Watkins, human resource development is fostering long-term work related
learning capacity at individual, group and organizational level.
3. The American Society for Training and Development defines HRD as follows: human
resource development is the process of increasing the capacity of the human resource
through development. It is thus the process of adding value to individuals, teams or an
organization as a human system.
using
increasingly
complex
organizational
structures
and
Features of HRD:
1. Systematic approach:
HRD is a systematic and planned approach through which the efficiency of employees is
improved. The future goals and objectives are set by the entire organization, which are well
planned at individual and organizational levels.
2. Continuous process:
HRD is a continuous process for the development of all types of skills of employees such as
technical, managerial, behavioral, and conceptual. Till the retirement of an employee
sharpening of all these skills is required.
3. Multi-disciplinary subject:
HRD is a Multi-disciplinary subject which draws inputs from behavioural science,
engineering, commerce, management, economics, medicine, etc.
4. All-pervasive:
HRD is an essential subject everywhere, be it a manufacturing organization or service sector
industry.
5. Techniques:
HRD embodies with techniques and processes such as performance appraisal, training,
management development, career planning, counselling, workers participation and quality
circles.
Defining an HR service delivery model that creates value for and is aligned with
your business strategyone that offers true strategic partnering, combined with efficient
and effective HR program design and delivery
Aon Hewitt has a track record of success with businesses that range from a few thousand
employees to some of the largest, most complex organizations in the world. From advisory
services to on-the-ground consulting, our team can help you address strategy, structure,
technology, program effectiveness and culture and behavior change.
Evaluate Your Reward Programs to Ensure They Meet the Needs of Your
Workforce
1.Total Rewards strategy & optimization
Helping to optimize your reward strategy and investments, including compensation,
benefits, work environment, and career development programs
HRD Functions:
HRD functions include the following:
1. Employee training and development,
2. Career planning and development,
3. Succession planning,
4. Performance appraisal,
5. Employees participation in management,
6. Quality circles,
7. Organization change and organization development.
RESEARCH METHODOLOGY
The present research paper is an empirical one. The survey for the present research is
conducted through primary data with the help of a questionnaire surveyed to employees of
select organized retailers. The sample taken for the study consisted of 30 which include
daily wage workers and employees from the select retail outlets situated in Mumbai.
The research design followed by the researcher Descriptive Research. The descriptive
research is to find out the existing facts by means of conducting surveys and fact-finding
enquiries of different kinds. The major purpose of descriptive research is description of the
state of affairs as exist at present. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what was happened or what
is happening.
COMPANY PROFILE
Globus is a retail clothing store chain, based in Mumbai India. It is a part of Rajan
Raheja Groups of April 2012 , the chain has 35 locations in India.
Globus was founded in January 1998 . Its first Location (at 35,000 square foot
store)opened in Indore in June 1999 , followed by two locations in Chennai . Its Mumbai
flagship location opened in November 2001. By May 2008 the chain had expanded to 24
stores, and started a push to greatly expand the number of locations. The chain has
previously announced bold plans to expand to a much larger number of stores, such as 150.
The chain was run by Ved Prakash Arya from its founding until March 2004.
Currently, it is run by Vinay Gajanan Nadkarni, who serves it as the Managing Director
and CEO. Nadkarni, who took over from Arya in 2004, opened the 36th store in February
2013.
Kareena Kapoor became the brand ambassador in 2008, and planned to launch her own
clothing line with the store.
In 2007, Globus created the world's largest Christmas stocking, which was 111 feet tall.
Globus stores Pvt. Ltd. Was formed to contribute to the revolution sweeping the Indian
retail Industry. Globus Promises to bring about a perceptible change in the way apparel and
lifestyle retailing is carried out.
Retail is Indias largest industry , accounting for over 10% of the countrys GDP and around
8% of the employment. Retail industry in India is at the crossroads. It has emerged as one of
the most dynamic and fast paced industries with several players entering the market, but
because of the heavy initial investment required ,break even is difficult to achieve and many
of these players have not tasted success so far. However the future is promising , the market
is growing ,government policies are becoming more favorable and emerging technologies
are facilitating operations.
Logo of Globus
The Globus has a logo which has Globus written in a simple way yet shows a
stylist font and defines being trendy . It has a background color which is green and
defines a new color every time .
Tagline of Globus
MAJOR COMPETITORS
1.Pantaloons
2.Central
3.Shopper's Stop
4.Lifestyle
5.Westside
6.Online shopping stores such as Myntra ,Jabong,Yepme,Zovi etc.
1.Pre-Check :To prepare yourself for success on the selling floor every day, prior to selling.
to avoid losing sales due to a lake of preparation.
2. Opening the sale : To break down customer's resistance . To establish a person-to-person
relationship with the customer as opposed to a salesperson -to-customer relationship.
3. Probing : To determine the customer's wants, needs and desires. To find out why they
want what they want. To develop the customer's trust in you.
4. Demonstration : To establish the value of the merchandize . To create a desire of
ownership.
5. Trial close : To close the sale and add on .
6. Objection handling : To save the sale by uncovering the customer's real reason for not
buying
7. Closing the sale : To get the customer to buy the main item and the add-ones.
8. Confirmation and invitations : To prepare buyer's remorse which can lead to returns or
cancellations. To encourage personal trade and increase repeat business
Area Manager
Cluster Manager
Store Manager
Assistant store manager/Department manager
Trainee Department Manager
Management Trainee
Supervisor
1.Supply chain : Distribution of stock starts from head office to various outlets through
trucks. Tender is sent to head office and they have to approve it.
DEDICATION OF EMPLOYEES
Core Values
.
Leadership: to be a leader, both in thought and business.
Recruitment
The main sources through which big bazaar recruit it employees are as given under. 98
a) Consultancy Services: For top level management, employees are recruited through
private consultants. They are usually appointed as Departmental Managers.
b) Walk-ins: This is the main source through which Big Bazaar recruits its employees.
People seeking job approach the HR department for employment. Generally it is for the
entry level positions this source is used.
c) Campus Recruitment: Globus visits some of the reputed educational institutions to hire
some of the most talented and promising students as its employees like Christ University,
Bangalore University etc. Selection The following is the selection procedure that the HR
department practices to hire its employees.
Interview: For entry level jobs, the candidates are interviewed by a HR person.
They are asked a few basis questions about their education, previous work experience if
any, languages known etc. This is done to evaluate the candidates ability to communicate
freely and work in teams with patience and enthusiasm. .
Psychometric Tests: For higher and top level jobs, candidates are asked to
answer a few questions which basically test their sharpness, analytical ability, ability to
handle stress, presence of mind etc. This is done as Managers are required to work under
stress all the time and still maintain a cool head to make some vital decisions.
Written aptitude test A written test to assess the aptitude and general knowledge of
candidates is administered to help screen candidates.
99 Group Discussion: In campus recruitment candidates are involved in a Group
Discussion, where they will be given a topic on which the group has to deliberate, discuss
and arrive at a solution Interview: Finally a formal interview will be conducted to assess the
overall skills of the student.
Reference letters: Recommendation and views of previous employer are given due weight
in selection process
SWOT ANALYSIS
Strengths:
1) Good supply chain management.
2) Variety of products available under one roof.
3) Higher PROFIT margins on sold products.
4) Good brands available at affordable prices.
Weakness:
1) High attrition rate.
2) Employees are not well trained in handling esteemed customers.
3) Sub standard Quality of goods.
4) There is no proper channel of advertising for promoting their products.
Opportunities:
1) Yet a huge unorganized retail market to be tapped.
2) Increasing customer preferences towards organized retail outlets.
Threats:
1) Many major players are foraying in the retail sector like Wal-Mart which may hamper
their margins to gain market share.
2) Customers may lose their trust on the company due to the supply of substandard products
and may even switch to some other company.
3) Unorganized retail market of India.
Employees are provided congenial environment to work. . They take utmost care to select,
train, motivate and retain all the employees. They have continuous developmental
programmes for all the employees.
Induction
New employees selected will be given induction. They will be given information about the
companys business, different departments etc. They will be informed of their roles, duties
and responsibilities. They will also be informed about the HR policies and rules of the
company. Training In-house training will be given to the regular employees once in a three
months. Probation The new employees will be on probation for a period of 6 months. After
this period HR manager along with the department manager will review the performance of
the employee. If the employees performance is good and encouraging, the employees
services will be confirmed.
Attendance
All the employees will be given identity cards which they have to wear and also swipe
while at the time of entering and leaving the Store. It provides time record of the employees.
Leaves and other rules An employee during his probationary period is entitled for 7 days of
leave. A confirmed employee is entitled for 30 days of leave in a year. Promotion Policy
TOTAL prefers promoting from within, rather than externally. The current promotion policy
is based purely on performance.
Performance Appraisal
The HR department conducts performance appraisal of all the employees quarterly. Based
on their performance ratings increments will be given in their pay. In addition to this if an
employee achieves or exceeds the target given to along with their team members will be
provided with attractive cash and other incentives.
Suggestion programme:
Jubilant Retail yet to introduce the employee suggestion programme in the TOTAL
hypermarket..
HR PRACTICESS IN GLOBUS
For existing staff training happens every week on Monday and Tuesday based on their
behavior and sales performance.
1. Coaching of staff every week by store manager.
2. Follow up of staff by department manager or supervisor where 1 staff is improving after
coaching or not.
3. Daily product training by fashion stylist or supervisor within department for 15 minutes.
4. Other training are also given like how to make alterations , how to take measurements
etc.
HR Challenges In Globus
4.Workforce Attrition:
There seems to be high level of attrition in the retail sector which is almost 40% according
to a recent study.
5.Threat of Poaching :
Employee poaching is also very high both in organized as well as unorganized retail
industry. Skilled manpower is scarce in this industry and as such attracting the employees of
competitors by offering them better salaries is a rather easy option .
FUTURE
Globus combines state of-the-art International information technology ,the highest quality
of the human resource and sustained financial commitement to relize its long time vision
.They are rapidly expanding and their target is to have an additional 100 fashion stores in
2017.
DATA ANALYSIS
FINDINGS
The human resource management practices are vital for the development of
any business or sector. The HRM practices have inevitable dependence on the organized
retailers. From the study it was found that, right from new hire to orientation period, there
are many differences in the implementation of HR practices in the selected organized
retailers. The satisfaction levels of various performance appraisal measures adopted in the
selected retail outlets showed that the employees are not only favoured to the incentive plan
but also the healthy environment and close relations between the peers are playing vital role
for their performance. Further, the supervisor has the key role in taking initiative in the
implementation of performance appraisal at the select organized retail outlets. The employee
facilities in the select organized retail outlets found to be not satisfactory to the employees
of the retail outlets.
The HR department is facing the challenges which include high attrition rate, absenteeism,
and implementation of innovative practices in the retail outlets. Hence, from the study, it
was found that the HR management practices in the select retail outlets are still in the initial
stages of development. The employee facilities and proper performance appraisal measures
will always encourage the employees to achieve the best. Hence, the retail outlets should
decide and implement proper HR practices in order to retain and develop the work force
who are the assets for the development of organizations. The government should also need
to bring revision of existing labour laws and should provide flexibility in working hours and
should encourage with its laws that can bring conducive environment.
SUGGESTIONS
Strategic HR planning is an important component of strategic HR management. It links HR
management directly to the strategic plan of your organization. Most mid- to large sized
organizations have a strategic plan that guides them in successfully meeting their missions.
Organizations routinely complete financial plans to ensure they achieve organizational goals
and while workforce plans are not as common, they are just as important.
Even a small organization with as few as 10 staff can develop a strategic plan to guide
decisions about the future. Based on the strategic plan, your organization can develop a
strategic HR plan that will allow you to make HR management decisions now to support the
future direction of the organization. Strategic HR planning is also important from a
budgetary point of view so that you can factor the costs of recruitment, training, etc. into
your organization's operating budget.
Strategic HR management is defined as:
Integrating human resource management strategies and systems to achieve the overall
mission, strategies, and success of the firm while meeting the needs of employees
and other stakeholders.
CONCLUSION
Human resources people are the backbone of any company and the success of retail business
depends a lot upon the kind of human resource strategies it is following and how people are
managed. Because of increasing competition between organized retailers, the retail industry
is facing the challenges and hurdles from different areas. From the survey on select
organized retailers, the following observations were made.
1.HIGH ATTRITION:
Employee retention and motivation of staff has become the major concern for HR
department in the organized retailing sector. Because of the strenuous schedules and
tasks involved in the retail industry, it becomes imperative for HR staff to take good care
of their employees who form the building blocks of their retail chain. The undercurrents
among the employees regarding company policies are many and they must be felt from
time to time to sustain the quality crowd and reduce the attrition rate. From the report of
Retailer, it is found that the attrition rates are comparatively high when it comes to the
retail industry in India. The attrition rate in the Indian retail industry is 30-35 percent.
The main reasons found to be the typical nature of job where a particular employee of an
organized retail company need to work on his feet the whole day and the job is reaction
intensive and the business is mainly transactional.
Providing training to the sales staff plays a significant role in every business operation.
Nowadays, the organized retailers are looking at a sales training company to help the sales
staff gain more proficiency and expertise in their respective field.
include sales staff and supporting staff to identify the firms marketing goals, and are
explaining about how the goals can be achieved.
2. ONLINE TRAINING:
The trainers of HR department are showing the visuals of well designed and successfully
running retail organizations outlets to the employees in order to make them to realize
the importance of the design of retail outlet. Apart from that, from the survey it was also
realized that the trainers are focusing on online training which include web based
support to enhance the abilities of the staff of the retail outlets. High Labour costs and
Complex nature of labour laws: Because of the increasing competition and the complex
nature of the work, the retail outlets are facing the problems of labour costs. Apart from
that, various labour laws are giving restrictions to o the HR department to achieve
desired objectives of the retail organizations. From the survey, it was found that the HR
department is facing with the problems like lengthy leisure hours and frequent
absenteeism of the employees to the duties. Even, it was found that the existing labour
laws in India forbid employment of staff on a contractual basis that makes it difficult to
manage employee schedule. Especially, when retail organizations are performing 365day operation, the problems in encouraging and motivating the employees to perform
well is a tough challenge for the HR department t are showing the visuals of well
designed and successfully running retail organizations outlets to the employees in order
to make them to realize the importance of the design of retail outlet. Apart from that,
from the survey it was also realized that the trainers are focusing on online training
which include web based support to enhance the abilities of the staff of the retail outlets.
BIBLIOGRAPHY
BOOKS
Scope Of HRM
The scope of HRM is indeed vast . all major activities in the working life of a
worker-from the time of his or her entry into an organization until he or she leavescome under the purview of HRM . specially , the activities included are- HR
planning , job analysis and design , recruitment and selection , orientation and
placement, training and development , performance appraisal and job evaluation ,
employee and executives remuneration , motivation and communication , welfare ,
safety and health , Industrial relations (IR) and the like.
Performance Appraisal:
It is one of the most controversial systems within human resource. No one in any
organization is ever happy with the system because it explores the bitter truth of an
employee. It is inherently conflict based because it is subjective and differs from
person to person.
Training and development: Retail industry has finally taken shape in India,
and is experiencing a rapid growth. Since organized retail is growing tremendously
procuring trained human resource for retail is a big challenge. The talent base is
limited and with the entry of big retailers in the market there is a huge demand of
trained and skilled professionals in this sector.
Employee Discipline:
It is a management tool to correct employee behavior.