SUMMER TRAINING REPORT

ON
“HR PRACTICES”
UNDERTAKEN AT
HERO MOTOCORP LTD.

SUBMITTED FOR PARTIAL FULFILLMENT OF DEGREE IN THE REQUIREMENT

OF
“BACHELOR OF BUSINESS ADMINISTRATION (GENERAL)”
OF
MAHARISHI DAYANAND UNIVERSITY, ROHTAK

SESSION: 2024 – 2025

Submitted by
ARPITA
BBA (GEN) V Semester
ROLL NO.: 1221783010056
UNDER THE SUPERVISION OF
DR. SURBHI
Professor (Business Admn. Deptt.)

D.A.V CENTENARY COLLEGE, FARIDABAD

(AFFILIATED TO MAHARISHI DAYANAND UNIVERSITY, ROHTAK)
ROHTAK
 CERTIFICATE

This is to Certified that “HR PRACTICES” is the bonafide work of MS. ARPITA, Roll No.-
1221783010056, a bonafide student of class BBA (GEN) V Semester of our college. She has
successfully completed the Summer Training at “HERO MOTOCORP LTD.”, under the
supervision of DR. SURBHI Faculty Guide and Professor (Business Admn. Deptt.) as required
in partial fulfillment of the requirements for the award of the degree of BBA (GEN) of M.D.
University, Rohtak.

DR. SURBHI
Professor (Business Admn. Deptt.)
 Dated _______________

To Whom So Ever it May Concern

This is to certify that Ms. Arpita,

Arpita a student of Bachelor of Business Administration (BBA)
studying in D.A.V. Centenary College,
College Faridabad – 121006 (Haryana) affiliated to M. D
University, Rohtak, has successfully completed
completed One Month Internship program in our
organization with effect from 01st Aug. 2024 to 30 Aug. 2024.. She has successfully completed
the project assigned to her. During the period of her Internship program with us, she was found
punctual hardworking and inquisitive.

We wish her success in all her future endeavors.

H R Manager
 ACKNOWLEDGEMENTS

I would like to gratefully acknowledge DR. SURBHI, Professor (Business Admn. Deptt.) at
D.A.V CENTENARY COLLEGE, FARIDABAD for flagging off this opportunity which has
definitely opened new gateways and avenues in my journey into the new corporate world. My
heartfelt appreciation and regards to her for granting me the permission to work on this project.
I seize this opportunity to express my heartfelt thanks to DR. SURBHI, Professor (Business
Admn. Deptt.) who has given her kind consent to carry out this Project on title “HR
PRACTICES” undertaken at “HERO MOTOCORP LTD”.
I would like to thank DR. SURBHI, Professor (Business Admn. Deptt.) and my Faculty Guide
for her continuous support, encouragement, and blessings. The work would not have been
possible to come to its present shape without her able guidance and supervision.
Last but not the least, I convey my hearty affection to all those people in my workplace as well
as my peers and friends who have helped and supported me during the course of completion of
my Training Report.

ARPITA
 PREFACE

I am a student of D.A.V CENTENARY COLLEGE, FARIDABAD worked on a Summer

Training Report on the title “HR PRACTICES” in “HERO MOTOCORP LTD” for practical
experience and learning as a part of my compulsory vocational training.
I got an opportunity to work with “HERO MOTOCORP LTD.” for my Report with the
Objective to Study and Analyze.
The whole report is divided into several cases.
The whole report introduces the complete profile of the organization and tells about the
objective, research methodology, welfare, suggestion, analysis, conclusion etc.
Project work is a scienctific and systematic study intended to catch the nerves of the problem or
issue with the “HERO MOTOCORP LTD”.
That report has been compiled preliminary in partial fulfillment of the requirement for the ward
of the degree of management studies programmed.
A part from the theatrical concept of the Topic, We have included the conclusion and suggestion.

ARPITA
 TABLE OF CONTENT

Chapter No. PARTICULARS AND CONTENT PAGE NO.

1 Introduction to the Topic 1-7
2 Industry Profile 8-13
3 Company Profile 14-22
4 Review and Literature 23-35
Research Methodology 36-37
A. Objective of the Study 38-44
B. Scope of the Study
45-47
C. Research Design and Sampling
5 48-56
 Sample Size
 Data Collection
 Types
D. Limitation of the Study 57-57
6 Data Analysis and Interpretation 58-68
7 Conclusion and Suggestion 69-71
Annexure
73-73
A. Bibliography
8 74-74
B. Questionnaires
C. Reference
75-75
 CHAPTER 1
INTRODUCION

1
 INTRODUCION

INTRODUCTION ON HR PRACTICES:
HR practices means that human resources personnel can develop the leadership of
employees. This occurs in the practice of developing extensive training courses and
motivational programs, such as devising systems to direct and assist management in
performing ongoing performance appraisals.
Organization is a place where the entire employees are going to work together. Commonly in
any organization perception towards the work and organizational Human resource practices
play a very important role. The best HR practices in an organization are going to create a
good working culture of the organization.
HR best practices are a set of processes and techniques that have been proven by research and
experience to produce increased business performance results. They are internal guidelines
that a company establishes to streamline procedures and obtain optimum results in all
business areas. A firm HRM practices refers to the policies, practices, and systems that
influence employees’ behavior, attitudes, and performance. It is sometimes referred to as
involving “people practices”. HRM practices include analyzing and designing work,
determining human resource needs ,attracting potential employees, choosing employees,
teaching them how to perform their jobs and preparing them for the future, rewarding
employees, evaluating their performance and creating a positive work environment. It can
also be explained as a practice that is devised to increase the competence, commitment and
improve the culture.

Definition of HR Practices:
Human resource management (HRM) is defined as the practices, policies, and systems that
influence employees, behavior, attitudes, and performance.

The Characteristics of human resource management are:

People Oriented:
This essential HRM feature is rather obvious. But, of course, humans are what human
resource management is all about. Therefore, people have to be the focus of successful HRM.
While managing their affairs at work is a given, excellent HR management considers
everything that surrounds us as people.
2
Employee Oriented:
This vital HRM characteristic means making the lives of employees at work easy. It includes
not just managing them but also remaining accessible for all queries and support. The quicker
HR professionals understand that a business runs most efficiently when its employees are
happy, the better the outcome.

Gives Opportunities:
This characteristic of HRM could have a rather large scope. However, the focus of this HRM
feature should be to let employees know that there is room for career growth. HR
management teams must help employees set realistic, time-bound goals for their growth in
the organization.
A question that always arises here is, what do we do when we have too many tenured
employees?

Development Oriented:
One aspect of this HRM feature is to ensure the development of employees. Plan training
schedules well in advance to meet current and future growth requirements and ensure that the
employees are meeting business demands. An employee who is given knowledge naturally
has more confidence in executing their job better.

Decision Oriented:
Data gathering is relatively easy in today’s world. However, what gets done with that data is
essential. Therefore, a crucial feature of HRM is to crunch data and provide a wealth of
accurate, helpful information.
Having the facts greatly facilitates decision-making. In many cases, this means looking into
the future and analyzing potential outcomes before they happen.

3
The features of HRM are:
● HRM is an art and a science
● HRM is pervasive
● HRM is a process
● HRM is a continuous process
● HRM is a service process
● HRM must be regulation-friendly
● HRM is interdisciplinary and fast changing
● HRM is focused on results
● HRM is people –centered
● HRM is an integrated concept
● HRM is a develops team spirit

The importance of HR practices:

Rhoades and Wiesenberger (2002) stated that providing training and appraising performance
helps employees feel supported by their company, which leads to more workplace
commitment. In other words, quality HR practices can increase employees' affective
commitment toward their companies.

Functions of hr practices are:

● Recruitment and selection. It takes time and planning to attract and recruit highly talented
employees.
● Training and Development.
● Company Brand and Culture.
● Safety and Health.
● Performance Management.
● Succession Planning.
● Compensation and Benefits.
● Compliance and Legal.

4
1. Recruitment and hiring:
One of the most well-known functions of human resource management is recruitment
and hiring. To remain competitive in the industry, businesses need to attract and retain top
talent. The HR team typically meets with a hiring manager to learn more about open
positions and gain a detailed understanding of the kind of people that will fit best in those
roles. While they also consider education, experience, and skills, HR must look at personality
traits and working styles to increase the chances of long-term compatibility.

2. Onboarding and ongoing training and development:

Once a company hires employees, it’s vital to properly onboard and train them so
they have the tools to excel in their roles. Human resource management provides onboarding
for new employees, which can include sharing the company mission, vision, and values, in
addition to internal policies and procedures. It may also include safety training, depending on
the workplace.

3. Managing employee and employer relationships:

A company’s success relies on its people, so human resource management must focus
on fostering healthy relationships among all levels of employees. This can include conflict
resolution during tense situations or negotiating positive outcomes for all involved parties. It
may also include providing specific types of training, such as anger management or
mindfulness, to ensure employees have the resources to manage themselves effectively in the
workplace.

4. Creating a rewarding company culture:

One of the most overlooked functions of human resource management is developing
an engaging company culture. Keeping employee morale high doesn’t happen only during
team lunches or after-work drinks. It happens through the ethos of the company — the
mission, vision, and core values. Another HR responsibility
includes making sure employees have competitive pay and both tangible and intangible
benefits.

5
Human Resource best practices are:
1. Providing security to employees
2. Selective hiring: Hiring the right people
3. Self-managed and effective teams
4. Fair and performance-based compensation
5. Training in relevant skills
6. Creating a flat and egalitarian organization
7. Making information easily accessible to those who need it

1. Providing security to employees:

The first Human Resource best practice is employment security. Life is unpredictable and
work is a stable factor that is very important to most people. Having an employer who
enables the employee to provide for themselves and their family is, in essence, the number
one reason why people come to work.Employment security enables employees to go home
after work and provide for themselves and their families. This concept of security is essential
and underpins almost everything HR does.

2. Selective hiring: Hiring the right people

The second HR best practice is selective hiring. This enables an organization to bring
in employees who add value. You can’t just hire anyone; you want people who are fit for the
job. Companies do their utmost best to hire exceptional people because they add the most
value to the business. There also needs to be a prioritization of building a structured and fair
selection process.

3. Self-managed and effective teams:

We all know that teamwork is crucial in achieving goals. High-performance teams are
crucial for any company when it comes to achieving success. Teams provide value because
they consist of people who are, and think differently but are working towards a common
goal. This means that different ideas are generated to help achieve the goal. These ideas are
then processed and combined, resulting in the best ones being selected. Finally, HR needs to
encourage different teams to work together in the organization. A team is usually part of a
larger entity, like another team or a department. These larger entities also need to work
together.
6
Facilitating this helps to build an efficient and effective organization. One of the tools that can
be used for this is Organizational network analysis.

4. Fair and performance-based compensation:

Contingent compensation is the fourth Human Resource best practice. It has
everything to do with compensation and benefits. First of all, if you hire the right people, you
want to compensate them above average. These are the people that will add the most value to
your company so you want to retain them and pay them fairly.
Think of profit sharing, shared ownership, or stock options for instance. These are great ways
to create employee commitment to the company’s long-term vision and retain high potentials.
Compensation is a key element for successful talent management.

5. Training in relevant skills

This HR best practice states that companies should invest heavily in training time and
budget for its employees. After recruiting the best people, you need to ensure that they
remain the frontrunners in the field. This has become even more relevant today as the rate at
which technology is developing is growing exponentially.

7
 CHAPTER 2
INDUSTRY PROFILE

8
 INDUSTRY PROFILE

Hero Motor stands for Hero MotoCorp Ltd., a renowned two-wheeler brand from the vibrant
city of New Delhi, has consistently maintained its stature as a global leader in the motorcycle
and scooter sector for well over two decades. Imagine a dedicated assembly line in New
Delhi, carefully producing vehicles that have become a staple on Indian roads, a
representation of the country’s spirited and determined automotive industry. Hero MotoCorp
hasn’t merely led India’s remarkable journey in mobility but has also shown its solid presence
across the international automotive marketplace, showcasing the expertise of Indian
manufacturing and engineering capacities to a global audience, spanning 47 countries to be
precise.
In this blog post, we will delve into the universe of Hero MotoCorp Ltd. exploring the
significant milestones it has achieved during its remarkable journey.
About Hero MotoCorp Ltd.
Aspect Details
Founder Brijmohan Lall Munjal
Industry Type Automotive
Founded Year 1984
Headquarters New Delhi, India
Dr. Pawan Munjal (Executive Chairman)
Key People Niranjan Gupta (CEO)
Parent Company Hero Group
Countries 47 (Worldwide Presence)
Market Cap ₹602.67 billion
Total Employees9,215

Overview of Hero MotoCorp Ltd.

Hero MotoCorp Ltd., headquartered in New Delhi, India, stands as a formidable entity in the
global two-wheeler industry. Established in 1984, it has consistently been the world’s largest
manufacturer of motorcycles and scooters in terms of unit volumes since 2001. With a
commanding 47% share in India’s domestic motorcycle market and a substantial 33.2% in the
overall two-wheeler market, the company solidifies its position as a market leader on its
home turf.

9
Hero MotoCorp has a vast network of over 10,000 customer touchpoints worldwide, ensuring
a broad and efficient customer reach. With an impressive annual production capacity
exceeding 9.50 million units across its 8 manufacturing facilities, the company meets the
demand effectively. Internationally, it extends its presence to 47 countries, offering its
products to a diversified global clientele.
Its commitment to innovation and customer satisfaction is evident through its 110 million-
strong customer base. The company remains driven by its vision of being ‘The Future of
Mobility,’ and its mission emphasises creating industry-leading mobility solutions,
collaborating for sustainable practices, and inspiring stakeholders through purposeful action.
Hero MotoCorp Ltd. History
1984: The inception of Hero Honda Motors Ltd. was marked as a joint venture between
the Hero Group and Honda Motor Company, Japan.
1985: This year witnessed the rollout of the first motorcycle, “CD 100”
1987: A significant landmark, the 100,000th motorcycle was produced.
1991: Hits the production milestone of 500,000 motorcycles.
1994: The iconic ‘Splendor’ was introduced, and the production number hit 1,000,000.
1997: Introducing the new model “Street”, Hero also extended its manufacturing capability
by inaugurating its 2nd plant at Gurgaon.
1999: With the introduction of a new model – “CBZ”, Hero showcased its ability to explore,
merging style with performance.
2000: A remarkable year when Splendor was declared the ‘World No. 1’- the largest-selling
single two-wheeler model.
2001: The 5 millionth motorcycle rolled out, and the new model “Passion” was introduced.
2003: Splendor achieved a global record of being the World’s largest-selling model for three
consecutive years (2000, 2001, 2002).
2004: This year marked the emergence of Splendor as a global leader, crossing the 5 million
mark in sales, and Hero Honda becoming the World No. 1 Company for the third consecutive
year.
2005: The company established Hero Honda Haridwar Plant, its third manufacturing facility.
2007: This year saw the company introduce a revolutionary 100cc bike, the “Hero Honda
CBZ Xtreme”, which brought fresh designs and technological advancements into the market.
2009: The 15 millionth two-wheeler was rolled out from its plant in Gurgaon.

10
2010: Company decided to part ways with Honda and was renamed Hero MotoCorp in the
following year, signifying the end of a joint venture and the beginning of an independent
journey.
2011: It marked the birth of a new identity with Hero MotoCorp unveiling its new logo and
brand identity. It also launched “Impulse”, the first model without Honda technology.
2013: The company introduced “iSmart”, featuring the innovative i3S technology (idle start-
stop system) which marked Hero’s steps towards smart, eco-friendly mobility solutions.
2016: Hero MotoCorp launched the “Splendor iSmart 110”, the first motorcycle to be
developed completely in-house, showcasing its R&D capabilities post-separation from
Honda.
2018: Hero MotoCorp celebrated the production of its 100 millionth two-wheeler, a
milestone in the global two-wheeler industry.
2019: Setting the 25 million units production landmark at the Haridwar Facility marked this
year.
2021: The company’s operations in Nigeria were restarted, and enhanced its premium
portfolio with the XPULSE 200 4V launch.
2022: Hero MotoCorp announced several notable events, including a collaboration with
Hindustan Petroleum Corporation Ltd. to push emerging mobility solutions and unveiled a
new brand ‘VIDA’ for electric mobility.
2023: Key changes took place this year, including the appointment of NIRANJAN GUPTA
as Chief Executive Officer.
Major Subsidiaries of Hero MotoCorp Ltd.
Hero Cycles Ltd.
A flagship company of the Hero Eco Group, Hero Cycles holds the title of being one of the
largest manufacturers of bicycles in the world. Established in 1956, Hero Cycles has focused
on producing high-quality bicycles but also has been crucial in promoting a culture of eco-
friendly transportation. With a manufacturing capacity that stands at around 5.2 million
bicycles per annum, it showcases its operational excellence and has a variety of models
suitable for all age groups.
Hero FinCorp Ltd.
Instrumental in meeting the financial facilitation needs of customers, dealers, and suppliers of
Hero MotoCorp, Hero FinCorp makes a notable mark in the financial sector. With a
diversified product portfolio that includes solutions for two-wheeler financing, Hero FinCorp
not only aids in increasing the sales of Hero MotoCorp but also delivers a smooth and
11
supportive financial experience to its customers. It prides itself on its robust network, offering
financial products that cater to a wide variety of needs across different demographics.
Hero Future Energies Pvt. Ltd.
Hero Future Energies, established in 2012, signifies Hero MotoCorp’s commitment towards
sustainability and environmental responsibility. With a multidimensional approach covering
wind, solar, and alternative energy, Hero Future Energies is emerging as a key contributor in
shaping India’s renewable energy landscape, ensuring a cleaner and more sustainable future.
Major Acquisitions by Hero MotoCorp Ltd.
Erik Buell Racing (EBR)
In 2013, Hero bought a big piece of Erik Buell Racing (EBR), a company in the U.S. known
for making great motorcycles. This buy helped Hero learn more about making sports bikes
and use EBR’s know-how in engineering. Joining hands with EBR, Hero planned to use its
big manufacturing power to make exciting new products and spread its business in more
countries.
Ather Energy
Hero put money into Ather Energy, an Indian company that’s good at making electric
scooters. This wasn’t just about investing money but also about learning more about electric
vehicle (EV) technology. Ather’s cool electric scooters and their knowledge of EV tech
helped speed up Hero’s own work in making electric vehicles. This shows Hero’s promise to
build eco-friendly bikes and is a big step towards their dream of green mobility.
Products/Brands Under Hero MotoCorp Ltd.
Hero Splendor
Splendor is a bike that many people know and trust. It came out
in 1994 and since then, it has been loved for being a good,
reliable bike that doesn’t use much petrol. There are different
kinds of Splendor like Splendor+, Super Splendor, and Splendor
iSmart, and all of them are easy to afford and run. They are
simple, look good, and are easy to ride every day.
Hero Passion
The Passion series, which started in 2001, is a good-looking yet
pocket-friendly bike. It is liked by young people and working
folks too because of its modern design and good mileage. There
are different models like Passion Pro and Passion XPro which

12
give a great riding experience without using a lot of petrol.
Hero Karizma
Since 2003, Karizma has been a popular name for those
who like sporty bikes. It looks sporty and rides powerfully,
making it a choice for people who like long rides and sporty
riding. Karizma and the later model, Karizma ZMR, were
liked for their powerful 223cc engine and sporty look. This
bike made it clear that Hero can make bikes that are
exciting and meet different riders’ dreams.
Hero CBZ
CBZ, a bike that came out in 1999 in the 150cc category,
showed Hero MotoCorp’s commitment to making powerful
and stylish bikes. CBZ quickly became famous for its strong
engine, sporty looks, and great performance. It catered to
young people and bike lovers by providing a mix of power
and style. The CBZ series grew with new models like CBZ
Xtreme and CBZ Star, showcasing Hero’s skill in mixing lively style with strong
performance and setting a standard in the higher-level bike segment.
The big picture of Hero MotoCorp Ltd. shows a company that never stops trying to do better
and stays committed to inventing new ways of travel. From starting small to becoming a big
player on the world stage, Hero has shaped a path that shows not only its big wins but also its
strong belief in creating, working together, and inspiring others. Going through Hero’s story
– its beginnings, smart buys, tech advances, impressive products, and its clear effect on the
world, all these together tell a story of a brand that has consistently worked to reshape how
we move.

13
 CHAPTER 3
COMPANY PROFILE

14
 COMPANY PROFILE

Hero MotoCorp Ltd (Hero MotoCorp) manufactures and markets motorized two-wheelers,
and its spare parts. The company offers motorcycles, and scooters in 100 cubic capacity (CC),
110cc, 125cc, 150cc, 200cc and 225cc and scooters. The company’s major products include
Xpulse, Karizma ZMR, Xtreme Sports, Glamour BS6 among others. It also offers spare parts
for two-wheelers and provides support and maintenance services. It operates dealerships,
service and parts outlets, and dealer-appointed outlets, and state-of-the-art manufacturing
facilities in India, Colombia and Bangladesh. The company sells its products to customers
across Asia, Africa, and South and Central America. Hero MotoCorp is headquartered in New
Delhi, India.

15
Competitor Comparison

Hero Yamaha
Key Suzuki Motor Mahindra & Bajaj Auto
MotoCorp Motor Co
Parameters Corp Mahindra Ltd Ltd
Ltd Ltd
Headquarters India Japan India Japan India
Hamamatsu-
City New Delhi Mumbai Iwata-Shi Pune
Shi
State/Province Delhi Shizuoka Maharashtra Shizuoka Maharashtra
No. of
9,225 72,372 24,405 53,701 6,192
Employees
Entity Type Public Public Public Public Public

16
HERO MOTOCORP LTD SUMMARY
Hero MotoCorp Limited is the worlds
largest manufacturer of two wheelers.
The Company is engaged in the
manufacturing and selling of motorised
two-wheelers, spare parts and related
services. The Company has over 9.50
million annual production capacity across
8 manufacturing facilities i.e., 6 in India and one each in Colombia and Bangladesh.The
Company offers a range of bikes starting from CD Dawn, CD Deluxe, Splendor Plus,
Splendor NXG, Passion and Passion Pro. The 125 cubic centimeter segment offers Glamour,
Super Splendor and Glamour F1. It has an offering called Achiever in 135 cubic centimeter
segment. In the 150 cubic centimeter and above the company offers brands like Hunk, CBZ
X-treme, Karizma and the Karizma ZMR. It also offers a 100 cubic centimeter scooter,
Pleasure.Hero MotoCorp Limited was incorporated in January 19th, 1984 under the name
Hero Honda Motors Ltd. The Company was established as a Joint Venture Company between
Honda Motor Company of Japan and Hero Group. In year 1983, they signed a Joint
Collaboration Agreement and formed the Company. The joint venture between Indias Hero
Group and Honda Motor Company, Japan has not only created the worlds single largest two
wheeler company but also one of the most successful joint ventures worldwide.In the year
1985, the Company commenced their commercial production at Dharuhera plant in Haryana
and introduced their first motorcycle, CD 100 in the market. In the year 1989, they launched
the new motorcycle model, Sleek in the market and in the year 1991, they introduced new
motorcycle model, CD 100 SS in the market. In the year 1995, the company introduced their
extraordinary product, Splendor in the market.In the year 1997, the Company inaugurated
their second manufacturing facility at Gurgaon in Haryana. Also, they introduced new
motorcycle model, Street in the market. In the year 1999, they launched Hero Honda CBZ,
the first 150cc motorcycle in the Indian two wheeler industry. In the year 2001, the company
introduced new models, Passion and Joy in the market. In the next year, they introduced new
models, Dawn and Ambition in the market.In the year 2003, the company launched new
motorcycle models namely, CD Dawn, Splendor+ and Passion Plus in the market. Also, they
launched Hero Honda Karizma, the industrys first 223cc motorcycle. In the year 2004, they
introduced new models, Ambition 135 and CBZ* in the market. During the year, they
renewed the joint technical agreement with the Honda Motors Company, Japan.In the year
17
2005, the company launched Super Splendor, CD Deluxe, Glamour and Achiever in the
market. In the year 2006, the company forayed into scotter segment and launched 100cc
gearless scotter, Pleasure in the market. In the year 2007, the company launched Splendor
NXG, CD Deluxe, Passion Plus and Hunk in the market.During the year 2007-08, the
company commissioned their third plant at Haridwar in Uttarakhand with an initial installed
capacity of 500,000 units. This plant had lean manufacturing and practices that ensure
efficiency. During the year, the company launched new models (including variants) including
Splendor NXG, Hunk, New Super Splendor, New Passion Plus, Commemorative Splendor+
and a refreshed version of Pleasure. During the year 2008-09, the company increased the
installed capacity of Motorised 2 wheelers upto 350CC engine by 1800000 Nos to 5200000
Nos. Also, they launched eight models: Passion Pro (100 cubic capacity-4 Stroke), CBZ-
Extreme (150 cubic capacity - 4 Stroke), Pleasure New Aesthetics, Splendor NXG (Self
Start), CD Deluxe (Self Start), Glamour FI, Glamour (Carb) and HUNK Special Edition.
Also, they launched new motorcycle model, Karizma - ZMR in the market.During the year
2009-10, the company increased the installed capacity of Motorised 2 wheelers upto 350CC
engine by 200000 Nos to 5400000 Nos. The company launched nine new models during the
year. During the year 2010-11, the company launched six new models including variants of
existing models successfully. They refreshed Glamour and Glamour FI. They introduced the
New Hunk, Super Splendor and Splendor Pro. The company launched the new upgraded
versions of CBZ Xtreme and Karizma. Also, they breached the landmark 5 million figure
cumulative sales in a single year. During the year, the Indian Promoter Group of the
company, which comprised of Hero Investments Pvt Ltd (HIPL), Bahadur Chand Investment
Pvt Ltd (BCIPL) and Hero Cycles Limited (Hero Cycles) re-aligned the shareholding in the
company, following a family agreement. As a result, Hero Cycles transferred its shareholding
in the company to HIPL on May 28, 2010. As a result of these transactions, the Indian
Promoter Group of the company now comprises of HIPL and BCIPL owned and controlled
entirely by the Munjal Family headed by Brijmohan Lall Munjal. Also, during the year, the
Indian Promoter Group and Honda Motor Co Ltd, Japan (Honda) entered into a Share
Transfer Agreement (the Agreement) on January 22, 2011. As per the terms of the
Agreement, Honda had agreed to transfer its entire shareholding of 26% in the Company to
the Indian Promoter Group, bringing an end to the joint venture between the two promoter
groups of the company. The acquisition was completed on March 22, 2011 and the shares
held by Honda were transferred to the Indian joint venture partner.In addition to the
Agreement, the Indian Promoter Group and Honda also entered into a License Agreement on
18
January 1, 2011. As per this agreement, Honda has given to the company, the right and
license to manufacture, assemble, sell and distribute certain products and their service parts
under their Intellectual Property Rights.In July 2011, the company changed their name from
Hero Honda Motors Ltd to Hero MotoCorp Ltd. In February 2012, the company entered into
a strategic partnership with Erik Buell Racing (EBR) of USA for contemporary technology
and design inputs to enable the company to launch high end bikes for the domestic and
international markets.In 2013, Hero Motocorp commenced construction of its new plant &
Global Parts Centre. The company Commences Construction of Its GAME-CHANGING
Centre of Global Innovation And Research & Design. In 2014, Hero Motocorp Heralds A
New Era Of Technology Leadership. The company Sets New Benchmark For The Global
Two Wheeler Industry. The company Launches Splendor Ismart With Game Changing I3s
Technology. The company also rides Into A Greener Tomorrow With GARDEN FactoryIn
2015, Hero MotoCorp launched a new entry level commuter, the HF Dawn. During the year,
the company has been allocated a 592-acre site to facilitate development of its Rs 1600-crore
Greenfield manufacturing unit in Andhra Pradesh. HMCL Americas INC enters into
Settlement Agreement to Acquire EBRs Consulting Business. The company commences
operation in their first ever plant outside India established in Villa Rica, Colombia.On 29
September 2015, Hero MotoCorp launched two scooters under the brands Maestro Edge and
Duet.In February 2016, Hero MotoCorp showcased three new bikes Splendor iSmart 110, the
Xtreme 200 S, the XF3R and an electric scooter the Duet E at Auto Expo, a trade show in
New Delhi. On 10 March 2016, Hero MotoCorp formally inaugurated its world-class Global
Centre of Innovation and Technology (CIT) in Jaipur, Rajasthan. Built with an investment of
Rs 850 crore, the CIT will design and develop world-class products for global markets.In
April 2016, Hero MotoCorp launched a drive against unscrupulous traders selling counterfeit
Hero spare parts. On 14 July 2016, Hero MotoCorp launched the new Splendor iSmart 110,
the first motorcycle to be developed completely in-house with Heros own technology. To
commemorate the landmark 70 million in cumulative production of two-wheelers, Hero
MotoCorp on 26 September 2016 launched a Limited Edition of a new premium motorcycle
Achiever 150. The Board of Directors of Hero MotoCorp at its meeting held on 26 October
2016 approved an investment of up to Rs 205 crore, in one or more tranches, for
approximately 26-30% shareholding in Ather Energy Private Limited. Ather is a Bangalore-
based technology start-up engaged in the business of designing and manufacturing smart
Electric Vehicles (EV) and associated charging infrastructure.On 10 November 2016, Hero
MotoCorp unveiled its new Dawn 125 motorcycle at the EICMA Motorcycle show in Milan,
19
Italy. As part of Hero MotoCorps market-specific product strategy, the Dawn 125 motorcycle
has been developed specifically for the Africa region.On 12 January 2017, Hero MotoCorp
launched new Glamour motorcycle in Argentina, its first-ever global launch of a new product
outside India. On 3 April 2017, Hero MotoCorp announced that the company clocked its
highest-ever sales in a financial year at 66,63,903 units in FY 2017 compared to 66,32,322
units it had sold in the previous fiscal (FY 2016).In May 2017, Hero MotoCorp commenced
commercial production at the second global manufacturing facility in Bangladesh. On 3
October 2017, Hero MotoCorp announced that it has set a new global benchmark in the two-
wheeler industry, surpassing the seven lakh sales mark in any month. Riding on robust
demand for its range of two-wheelers, the company registered its highest-ever sales for any
month, despatching 720,739 units in September 2017. On 11 October 2017, Hero MotoCorp
announced that it has set a new global record, clocking 2 million unit sales in Q2 September
2017. Hero MotoCorp sold 20,22,805 units of two-wheelers in Q2 September 2017, recording
11% growth over the corresponding quarter in the previous fiscal. On 7 November 2017,
Hero MotoCorp unveiled the Xpulse Concept motorcycle as a world premier at the EICMA
annual trade show in Milan, Italy. On 21 December 2017, Hero MotoCorp unveiled three
new motorcycles - the 125cc Super Splendor, the 110cc Passion PRO and the 110cc Passion
XPRO - to further augment its dominant leadership in the domestic market. On 22 December
2017, Hero MotoCorp announced that it will be increasing the ex-showroom prices of its
motorcycles by about Rs 400 per model with effect from 1 January 2018 to partially off-set
rising input costs. Hero MotoCorp surpassed the landmark seven million units in cumulative
sales in a calendar year in 2017. The company sold a record 7,207,363 units of two-wheelers
in the calendar year in 2017.During FY 2017-18, construction of sixth manufacturing facility
at Sricity in Chittoor District in the state of Andhra Pradesh has commenced with a proposed
capacity of 1.8 million units per annum. The company will invest Rs 1,600 crore in setting up
this manufacturing facility. The plant is expected to be operational in FY 2019-20.During FY
2017-18, the second overseas plant of the company at Jessore in Bangladesh started
commercial production during the first quarter.During the year 2017-18,the Company added
two markets - Trinidad & Tobago and Guyana - to grow the countries in which HMCL is
present in, to 37.As on 31 March 2018,the Company has 6 subsidiaries including step down
subsidiaries and 3 associate companies.During FY 2018-19, construction of sixth
manufacturing facility at Sricity in Chittoor District in the state of Andhra Pradesh has
reached at an advanced stage with an annual installed capacity of 1.8 million units.The
Company has invested approx. Rs 650 crore in Phase I out of total projected investment of Rs
20
1,600 crore in setting up the manufacturing facility. Phase I is expected to be operational by
October 2019.Further, the overseas plant of your Company at Jessore in Bangladesh achieved
its designed production capacity of 1.5 lakh units during FY 2018-19 and consolidated decent
market share.As on 31 March 2019,the Company has 7 subsidiaries including step down
subsidiaries and 3 associate companies. During the FY2019,the Company has set up a Tech
Center in Germany as its wholly owned subsidiary under the name, Hero Tech Center
Germany GmbH.The Company sold over 78.21 lakh vehicles during the financial year 2018-
19, the highest by any two-wheeler company in the world.During FY 2019-20, the Companys
sixth manufacturing facility in Chittoor District in the state of Andhra Pradesh was
commissioned with Phase I installed capacity of 0.4 million units. The total Phase I
investment is approximately Rs 700 crore out of total projected investment of Rs 1,600 crore
in setting up the manufacturing facility. Transition from BSIV to BSVI emission norms has
been successfully accomplished well in time across all platforms in FY 2019-20.As on 31
March 2020, Company has 6 subsidiaries including step down subsidiaries and 2 associate
companies and regularly monitors the performance of these companies. During the year, the
Companys wholly-owned subsidiary, HMCL (NA) Inc. which had invested in Erik Buell
Racing, Inc. was dissolved and thus, Erik Buell Racing, Inc. also ceased to be the associate of
the company.In July 2020, the Company invested H 84 crore in Ather Energy, taking up its
shareholding in the Company to 34.58%.In November 2020, Company again invested in
Series D round in the Electric Vehicle startup.In October 2020, the Company signed a
distribution agreement with HarleyDavidson (H-D), under which the Company will sell and
service H-D motorcycles, and sell parts and accessories and general merchandise riding gear
and apparel in India. The Company has inducted 11 dealers of Harley-Davidson into its own
distribution network. Starting 01 January 2021, Hero MotoCorp Ltd. has become the
distributor for Harley-Davidson in India. Hero MotoCorp Ltd. and Harley-Davidson also
signed a Licensing agreement under which the Company will develop and sell a range of
premium motorcycles under the H-D brand name.During the FY2021, the company also
entered into a strategic partnership with Gogoror Inc. to accelerate the shift from fuel based
mobility to sustainable electric mobility in India.During FY 2020-21, the company entered
into Mexico market and the footprint of the company reached 41 markets outside India.On 04
February 2021,the company declared a special dividendof Rs 10 per share to mark the
achievement of historic milestone of achieving 100 Million cumulative production of two
wheelers.The company proactively paused its operations temporarily during the second wave
at all of its manufacturing facilities across the country, including its Global Parts Center
21
(GPC) in Neemrana and its R&D facility - the Centre of Innovation and Technology (CIT),
Jaipur due to the Operations escalation of Covid-19 cases across the country. The company
gradually resumed its operations from 17 May 2021 by starting single shift production at
three of its plants - Gurugram and Dharuhera in Haryana and at Haridwar in the northern hill
state of Uttarakhand.The company resumed production at all its manufacturing plants in India
from 24 May 2021.During the second quarter of FY2022, Hero MotoCorp achieved two
consecutive recognitions from the Guinness World Record for creating the Largest
Motorcycle Logo in August 2021 and for creating the Largest Online Photo Album of People
Planting Plants in September 2021.During the third quarter of FY2022,the company
inaugurated a flagship dealership in Dubai to expand presence in the Gulf market to 10
customer touchpoints in 5 countries.Also Partnered with Gilera Motors in Argentina to
expand Heros presence in the country - inaugurated a flagship dealership in Buenos Aires
under the partnership.The Company has 6 subsidiaries including step down subsidiaries and 2
associate companies as on March 31, 2022.During FY 2021-22, the Company commenced
retail sales in Mexico and introduced an extensive portfolio of products. It relaunched the
Hero brand in markets like Argentina, Kenya, Honduras and Nicaragua. It strengthened
presence in Gulf region, expanding networkof touchpoints, including dealerships, service
centres and spare parts outlets; it entered into another exclusive dealership in Dubai. It
reinvigorated strategy for the Nigerian market, leading to a 978% dispatch growth. It also
launched a new motorcycle, Hunter, developed especially for the market. In March 2022,
Company launched a new brand Vida-Powered by Hero, an in-house electric vehicle brand. It
forayed into the pre-owned two-wheeler business under the brand Hero Sure - Powered by
Wheels of Trust. It expanded the network by adding super stockists, authorized
representatives of dealers, Hero Sure network and HGPD. It launched Xpulse 200 4V in
October, 2021. It launched the new Stealth variant, Xtreme 160R, a fast-pick up bike. During
the year 2022, 45 new outlets were added, which increased their footprint to 43 markets
outside India. It launched the official Hero merchandise business in August, 2021.During the
year 2023, Company launched VIDA V1- Indias first fullyintegrated electric scooter in Delhi,
Jaipur and Bengaluru. It commenced the expansion plan of reaching eight more cities in FY
2022-23. It launched 9 new models. It expanded global presence to 47 in FY 2022-23;
launched Harley-Davidson X440 motorcycle and thereafter, launched the Hero Sure -
Powered by Wheels of Trust platform.

22
CHAPTER 4
REVIEW OF
LITERATURE

23
 REVIEW OF LITERATURE

HR practice is an element of an HR team's strategy for guiding and managing an organisation

according to legal regulations, candidate expectations and organisational goals. Successful
practices align with an organisation's business plan and contribute to its growth and
productivity. Practices differ from activities, which are daily tasks that allow an HR team to
execute its practices and strategy. These include duties like processing payroll, hiring
professionals and training new team members. Here are some examples of human resource
practices:
 Setting HR department goals that support the organisation's mission and values
 Creating policies for recruiting, training and retaining employees
 Determining the types and levels of employee compensation and benefits
 Developing continuing education and career advancement programs
 Establishing guidelines for managing and communicating with employees
 Maintaining a healthy and inclusive organisational culture

Singh, A. k. 2009, “HRM PRACTICES AND ORGANIZATIONAL CULTURE IN

SELECTED PRIVATE SECTOR ORGANIZATIONS”. The review of literature has
identified that the major chunk of research in India emanates from descriptive data and
experience sharing, which does not serve certain practice-oriented concerns. The
questionnaire consists of 90 items, of which 69 items concern HRM practices of the
organization, and 21 items concern organization culture.The correlation analysis has been
used to infer the relationship between variables of HRM practices and organizational culture.
A healthy culture is required for utilizing and enhancing employee competencies and to
develop people

24
Jarad, I. y. 2010, “Organizational Culture and Organizational Performance 60 research
studies”. Covering 7619 companies and small business units in 26 countries have found that
market culture and business performance are strongly related. This positive correlation is
identified by more than 35 performance measures. Organizational culture was based more on
differences in norms and shared practices, which was learned at the workplace and
considered as valid within the boundaries of a particular organization. Hence, in the context
of organizational culture, cultural differences resided more on practices while national, the
differences lie in values.
Alnaqbi, w. 2011, “The relationship between human resource practices and employee
retention in public organizations”. The purpose of this study was to identify HR practices and
other factors such as job satisfaction, organizational commitments and leadership practice
that affect employee retention in the UAE with emphasis on public organizations, in a
comparative study of Sharjah and Dubai. To accomplish this task, both quantitative and
qualitative research approaches were employed. The results show that national culture has a
direct influence on organizational culture.
Research participants indicate that the current workplace culture is not highly satisfactory,
and that strategies are needed to improve it. The research finds that lack of empowerment and
management style are factors that influence the retention of employees in UAE public
organizations.
RAHMAN, M. M. 2012, “The Role of Human Resource Management practices on Job
Satisfaction and Organizational Commitment”. This study aims at exploring the impact of
HRM practices on job satisfaction and organizational commitment. The influencing factors
relating to HRM practices on job satisfaction and organizational commitment are job
security, reward, training and development, equity, attitude of the top management and work
autonomy, etc. A survey has been conducted among 1000 employees on a structured
questionnaire and analyzed them objectively. To quantify those factors a five point rating
“likert scale” has been used in this paper. After tabulating the primary data the researchers
conducted various tests such as Chi square test, ANOVA test and identified a number of key
findings as to the effect of HRM practices on Job satisfaction and Organizational
commitment in the banking sector.
SAIFULISLAM. 2014, “Human Resource Management Practices: Influence of recruitment
and selection, and training and development on the organizational performance”. The sample
comprises staff and lecturers of the university. To achieve the study objectives, the
researchers developed a questionnaire, which was administered in a survey. The collected
25
data were analyzed by using SPSS. The analysis of the descriptive statistics and correlations
indicated that recruitment and selection as well as training and development significantly
correlated with the organizational performance.
Kennedy Alusa, Anne Kariuki 2015, “The study has been understood to know Human
Resource Management Practices, Employee Outcome and Performance of Tea Research
Foundation, Kenya”. The data has been collected by 150 employees of a government
organization. The descriptive research design has been used for this study. Stratified sampling
method was used for collecting the data. The tools used to analyze the data are percentage
analysis and correlation. The study established that employee outcome fully mediates the
influence of HRM practices on organizational performance.
Iqbal, s. 2016, “EMPLOYEES’ PERCEPTION REGARDING THE ROLE OF SPECIFIC
HRM PRACTICES IN KNOWLEDGE INTENSIVE FIRMS”. Questionnaires of this study
were distributed by the gatekeepers and completed questionnaires were received by the
contact persons at a time convenient to the respondents. The results of the study revealed that
employees perceive that in this dynamic business environment organizational recruitment
practices should be on priority. Fair recruitment and selection processes may boost
employees’ confidence to collaborate and share their skills with colleagues.
This may help to create new knowledge that can eventually improve an organization's
knowledge capability. M.E., D. C. 2017, “HRM Practices in IT Industries”. The 150
questionnaires are given to some employees and then the opinion of the employee’s bar chart
is prepared. The questionnaires are given with one-two chosen answers based on that the
percentage of satisfaction and dissatisfaction is eradicated. The greater number of
dissatisfaction issues are identified i.e. performance evaluation, promotion, transportation
facility, Appraisals. These issues are discussed and given some of the suggestions to make
employees satisfied.
MADANAT, H. G. 2018,”LEVEL OF EFFECTIVENESS OF HUMAN RESOURCE
MANAGEMENT PRACTICES AND ITS IMPACT ON EMPLOYEES’ SATISFACTION”.
A questionnaire was developed and administered to 540 employees in the banking sector of
Jordan out of which 406 were returned to test research hypotheses. The findings revealed a
high level of effectiveness of all HRM practices combined and for four individual practices
while a medium level of compensation effectiveness was yielded. It has been found that
employees’ satisfaction level was medium. A strong positive relationship has been identified
between the effectiveness of HRM and employees’ satisfaction. The study recommended
improving the financial compensation system of banks, which would positively increase the
26
level of employees’ satisfaction. Soni, S. 2019, “Engagement of employees is considered as a
robust indicator of outcomes that are highly valued by any business in any sector of the
industry”. Therefore, employee engagement and effectiveness could prove to be an excellent
parameter to assess the health of the organization as such with regards to satisfaction,
innovation, commitment, retention and productivity. This study was outlined on the basis of
the structural approach theory and adopted a secondary research methodology where the data
for the study was gathered through secondary sources derived from researches conducted by
researchers in the past and available from scholarly sites. The findings of this research
indicated that the culture of the organization had a largely positive and significant impact on
engagement and effectiveness of employees. Ying Wang, Sunghoon Kim 2020, “The study
has been undertaken to know Employee Perceptions of HR Practices: A Critical Review and
Future Directions”. The data has been collected among 105 employees in an organization.
Descriptive statistics Research has been used. The study explained Empirical studies confirm
that HR perceptions vary across the organizational hierarchy.

Abstract
The current globalization of economy
necessitates innovative approaches in
managing the work force. The fast changes
happening in the demography and social
systems thereof have given breathing space
for various HR practices enhancing the
employee productivity and growth. And one
of the most commonly used HR practice is competency mapping for development of the
employees. Identifying and development of the competencies in organization enable better
performance management as well as reward and recognition systems leading to career and
succession planning programs. Also competency mapping is a strategic HR frame work for
monitoring the performance. The aim of this study is to find out the competency mapping of
the organization and level of competencies of employees in this organization. For the data
collection, study used the questionnaire and survey. In this study sample size was 30
employees in the organization. For the analysis of data used percentage analysis, bar diagrams
,pie diagrams in this study. This study found out that majority of the employees have
competency skills. Key words: Competency, Competency mapping, Competency profiling
,competency map
27
 HUMAN RESOURCE BEST PRACTICES

The first question is: what are Human resource best practices?
Best practices are a set of Human Resources Management processes and actions that work
universally. In HRM research, there are two schools of thought on how to manage people.
The first one is the best fit, the second is best practices.
 The best fit school states that to add value, human resource policies should align with
business strategy. This means that HR should focus on both the needs of the
organization and the ones of its employees.
 The best practice school argues that there is a set of universal HR processes that lead
to superior business performance. According to its proponents, there are certain
bundles of HR activities that support companies in reaching a competitive advantage
regardless of the organizational setting or industry (Redman & Wilkinson, 2009).
We’ll skip the extensive scientific debate on the merits and flaws of each approach. With
these kinds of discussions, the truth often lies somewhere in the middle.
This means that the HR strategy and subsequent HR activities should be aligned with the
organization’s strategy for optimum efficiency (a.k.a. strive for best fit). In literature, this
alignment has also been referred to as Strategic Human Resource Management.
At the same time, there are a large number of best practices that have shown to lead to
superior performance for the organization. If HR executes these practices correctly, they will
add substantial value to the business and its goals (a.k.a. implement best practices).
These best practices are applied to different HR functions such as performance management
and learning and development.

28
Seven HR best practices
The 7 Human Resource best practices presented below have been proposed by Jeffrey
Pfeffer. Pfeffer wrote two books on this topic:
 Competitive Advantage through People (1994), and
 The Human Equation: Building Profits by Putting People First (1998)
In these books, he proposes a set of best practices that can increase a company’s profit. When
these HR principles are combined (or bundled), their impact is even more profound.
These best practices are:
1. Providing security to employees
2. Selective hiring: Hiring the right people
3. Self-managed and effective teams
4. Fair and performance-based compensation
5. Training in relevant skills
6. Creating a flat and egalitarian organization
7. Making information easily accessible to those who need it
We’ll go over them one by one.
1. Providing security to employees
The first Human Resource best practice is employment security. Life is unpredictable and
work is a stable factor that is very important to most people. Having an employer who
enables the employee to provide for themselves and their family is, in essence, the number
one reason why people come to work.
There is both a formal contract (labor for money) and an informal contract (you put in some
extra effort, we take good care of you) between the employee and the employer. Employment
security enables employees to go home after work and provide for themselves and their
families. This concept of security is essential and underpins almost everything HR does.
When this employment security is threatened, for example when there is a restructuring or a
layoff, you see this immediately ripple through the organization.
Employment security also benefits organizations because it helps them retain their people.
When employees are laid off, for example, it’s usually the organization that pays the price.
They are the ones who have invested in the selection, training, and development of these
employees. This is a costly process. If the organization doesn’t work on retaining its people,
they are more likely to leave and work for the competition.

29
In 2020, a survey found that job security is the third most important factor for employees.
28% of 1,100 professionals surveyed in the UK listed job security as an important factor. Job
security is important across global HRM practices.
2. Selective hiring: Hiring the right people
The second HR best practice is selective hiring. This enables an organization to bring in
employees who add value.
You can’t just hire anyone; you want people who are fit for the job. Companies do their
utmost best to hire exceptional people because they add the most value to the business. There
also needs to be a prioritization of building a structured and fair selection process. This
reflects legal requirements, internal diversity goals, and that a more diverse workforce, better
reflects society. This can be hugely beneficial for understanding wider consumer behavior
and the needs of different customers.
Research shows that the difference in performance between an average performer and a high
performer can be as high as 400%! This holds for different industries and job types, including
researchers, entertainers, and athletes.
Bringing in the right people is, therefore, a key to building a competitive advantage.
In today’s digital world, there are a lot of different recruitment tools we can use to make the
right selection. More and more companies vigorously keep track of their recruitment
metrics to see how well they are doing in this regard.
Commonly used selection instruments are structured and unstructured interviews, IQ tests,
personality assessments, work tests, peer assessments, and reference checks. These (pre-
employment) assessments are used to uncover three key candidate characteristics.
1. Ability: Is the person able to do the job? Does the person have the right technical and
soft skills? Is the person smart enough to do the job well?
2. Trainability: Can we train this person to improve his/her skills? Has the person the
aptitude to learn and keep developing?
3. Commitment: Will the person commit to his/her work and to the organization? Will
we be able to retain this person once he/she is up to speed and fully productive?
3. Self-managed and effective teams
We all know that teamwork is crucial in achieving goals. High-performance teams are crucial
for any company when it comes to achieving success.
Teams provide value because they consist of people who are, and think differently but are
working towards a common goal. This means that different ideas are generated to help

30
achieve the goal. These ideas are then processed and combined, resulting in the best ones
being selected.
The best teams are cognitively diverse and psychologically safe. This means that team
members can generate ideas that are different while feeling comfortable bringing these up
and discussing them.
Creating and nurturing high-performance teams is one of HR’s key responsibilities. Belbin’s
Team Role Inventory is a popular tool for team creation and cooperation. Effective HRM
includes directly supporting teamwork by involvement in how teams are organized. This can
be done in several ways. Measuring team performance, rewarding team excellence, and
advising management on techniques and tools to facilitate teamwork are some methods.
Individual personality assessments also help understand how other team members think and
behave. Understanding these processes is one of the main responsibilities of a manager. This
is the reason why a lot of management courses focus on it.
Different tools facilitate teamwork. Examples include communication software, feedback
tools, project management tools, and other task and goal-setting software. These can facilitate
communication and help teams be more efficient.
Finally, HR needs to encourage different teams to work together in the organization. A team
is usually part of a larger entity, like another team or a department. These larger entities also
need to work together. Facilitating this helps to build an efficient and effective organization.
One of the tools that can be used for this is Organizational Network Analysis.
4. Fair and performance-based compensation
Contingent compensation is the fourth Human Resource best practice. It has everything to do
with compensation and benefits.
First of all, if you hire the right people, you want to compensate them above average. These
are the people that will add the most value to your company so you want to retain them and
pay them fairly. This is an example that shows how different best practices work together to
provide more value than they would alone, in this case, selective hiring, contingent
compensation, and employment security.
Paying people above the norm also has some potential disadvantages. For instance, it
discourages bad employees to leave. However, if you’re consistently hiring world-class
performers, an above-average compensation is a must.
This sort of compensation package can take the form of financial (base) pay and employee
benefits. You must follow market trends across your field, and adjacent fields (many of the

31
best employees may come from other career areas). Then you will be able to understand the
average rate of pay and where your company ranks in the compensation offer.
Secondly, you want to couple individual rewards with the different types of contributions that
employees make. These are performance-related rewards.
By coupling organizational performance outcomes with individual rewards the individual is
incentivized to maximize this outcome. It also creates a sense of ownership for the employee.
Think of profit sharing, shared ownership, or stock options for instance. These are great ways
to create employee commitment to the company’s long-term vision and retain high potentials.
Compensation is a key element for successful talent management.
In line with the previous, this type of co-ownership is usually not meant for all
employees. Lepak & Snell (2002) offer a good model to assess how important individual
employees are.

As an organization, you want to specifically retain your “Criticals”. They are people with
unique skills (i.e. hard to replace) who are very valuable to the business. That’s why senior
managers, most of which fit this category, are often offered these benefits.
5. Training in relevant skills
This HR best practice states that companies should invest heavily in training time and budget
for its employees.
After recruiting the best people, you need to ensure that they remain the frontrunners in the
field. This has become even more relevant today as the rate at which technology is
developing is growing exponentially. This is where learning and development come in.

32
How do we create an organization in which the rate of learning matches the pace of change?
Learning has become a way to stay innovative, grow faster, and sustain a competitive
advantage.
Employers increasingly invest in skills-specific forms of training. According to the
Economist’s Lifelong Learning special report, the number of on-demand courses has grown
exponentially. Thanks to the internet, everyone is connected and can learn anything, anytime,
anywhere.
In addition to formal learning, on-the-job learning also plays an important role. Increased
focus on feedback, coaching, and peer learning plays into this. This is part of the often-quoted
70|20|10 rule:
 70% of learning is from challenging assignments
 20% of learning is from developmental relationships
 10% of learning is from formal coursework and training
Learning is also becoming increasingly important for the latest generations, such as the
Millennials and Generation Z. According to Gallup, younger employees rate learning and
personal growth as much more important compared to older generations.
The next generation of workers is actively looking for development opportunities and sees
these as a way to grow in their profession. Not offering these opportunities is related to
higher levels of employee turnover. In 2023, one of the key HR trends will be bringing
learning to employees’ day-to-day work and taking a more strategic approach toward
developing the soft and hard skills organizations need on board to be competitive.
Learning is, of course, also important for HR. To stay up to date and learn the skills needed to
do HR in the 21st century, check out our courses at the Academy to Innovate HR!
6. Creating a flat and egalitarian organization
This best practice in HR principles is rooted in the egalitarian practices of Japanese
management. Although we just saw that some employees are more critical than others for the
organization’s success, this shouldn’t be communicated in such a way. Every employee is a
valuable member of the organization and should be treated as such.
In Japanese organizations, this is expressed with common canteens, company uniforms, and
similar sickness and holiday entitlement. Such an egalitarian culture shows that everyone
deserves equal respect and could help in promoting the sharing of ideas.

33
7. Making information easily accessible to those who need it
Information sharing is essential. This is an area where a lot of large companies struggle: How
do you keep track of who knows what so you know where to go with your questions?
According to Pfeffer, there are two reasons why information sharing is so important.
Firstly, open communication about strategy, financials, and operations creates a culture in
which people feel they are trusted. It truly involves employees in the business. As an
additional effect, it discourages hearsay and negative informal chatter.
Secondly, if you want your people to share their ideas, they need to have an informed
understanding of what’s going on in the business.
Being informed about the business is also something that employees often mention as
something they find important in attitude surveys, as well as having a chance to contribute to
and influence decisions affecting their working life.
HR activities often contribute to communication across the workforce. This could be by
creating sub-groups for people from diverse backgrounds, such as women and LGBT
individuals. HR may assist in or lead on, the production of internal newsletters and updates.
Synergies between HR best practices: Bundles
When these best practices are combined we call them ‘bundles’. Bundles create synergies.
This is how Human Resource Management can create a competitive advantage for the
organization.
An example. Guaranteeing employment security will only benefit you when you have high-
performing employees. Otherwise, what’s the use of retaining them? This means that the
employment security best practice, combined with selective hiring, leads to more value than
individual practices.
The same goes for selective hiring, extensive training, and contingent compensation. You
want to select employees with growth potential, invest in them with learning and
development, and reward them appropriately when they show superior performance.
A third example is the reduction of status differences and information sharing. By
encouraging open communication and sharing relevant information, you create a culture of
improvement in which employees feel free to give suggestions and collaboratively help to
improve the business.
By leveraging these bundles, effective HRM can add tremendous value to the business and
help the organization succeed in reaching its goals.

34
Human Resource Management best practices: a reality check
According to Kurt Lewin, there’s
nothing more practical than a
good theory. However, each
theory has its drawbacks. It turns
out that some of these best
practices contradict each other.
Take employment security. This
practice sounds nice in theory
but in reality, companies are increasingly working with flexible contractors. These
contractors lack the security that traditional employees have and provide the company with
additional flexibility. According to Marchington and Grugulis (2000), “the reality is that
employment security is only offered when and for as long as it is convenient to the
employer.”
Another example is training. A lot of organizations have implemented the extensive training
principle. However, simply delivering training doesn’t add to the company’s competitive
position. The way formal training is provided in organizations often offers several concerns:
 Formal training programs may be directed to skills that are not in line with the
employee’s work
 Employees are provided access to training simply because of the excess budget
instead of business needs
 There’s often more emphasis on being trained than on the impact of training
In other words, extensive training only adds value as long as it helps individuals and teams
contribute to the strategic goals of the organization. This is in line with the Kirkpatrick-
Philips model, which helps measure training effectiveness. This model helps assess whether
training had a measurable impact on performance and whether the training investment
provided a positive return on investment (ROI).
A final example is selective hiring. This best practice holds that if a company can consistently
hire top performers, it will outperform its competition. However, it is almost impossible to
consistently hire top performers. The reality is simpler: if you consistently hire better
candidates than your competition, you will create a competitive edge.

35
 CHAPTER 5
RESEARCH METHODOLOGY
A. Objective of the Study
B. Scope of the Study
C. Research Design and Sampling
 Sample Size
 Data Collection
 Types
D. Limitation of the Study

36
 RESEARCH METHODOLOGY

“Research is a systematic effort to gain new knowledge” it is a systematic study consisting of

a problem, formulating hypotheses, collecting the fact and data, analyzing the facts and
searching for certain conclusions, which can be in the form of solution towards a problem.
The main steps involved in the research process are:
 Defining the research problem
 Review of the related literature
 Formulation of hypothesis
 Research design
 Collection of data
 Analysis of data
 Interpretation & report
Research and experimental development is creative work undertaken systematically to
increase the stock of knowledge to devise new application.
TYPES OF RESEARCH
The basic types of research are following:
Descriptive Vs. Analytical
Descriptive research includes surveys and fact-finding enquiries of different kinds. In
analytical research, on the other hand, the researcher has to use facts or information already
available.
Applied Vs. Fundamental
Research can either be applied (or action) research or fundamental (to basic or pure) research.
Applied research aims at finding a solution for an immediate problem facing a society or an
industrial/business organization.
Quantitative Vs. Qualitative
Quantitative research is based on the measurement of quantity or amount. Qualitative
research, on the other hand, is concerned with qualitative phenomenon.
Conceptual Vs. Empirical
Conceptual research is that related to some abstract idea (s) or theory. On the other hand,
empirical research relies on experience or observation alone, often without due regard for
system and theory.

37
OBJECTIVE OF THE STUDY
The basic objective of this report is to “H.R. Practices” process in “HERO MOTOCORP
LTD” following fundamental objectives have been indentified as the sub objectives of the
study:-

Human Resource Management (HRM) is a comprehensive process of acquiring, developing,

motivating, and maintaining a pool of efficient employees. The main aim of HRM is to
ensure the right people with the right skills for the right job position in an organization. The
main functions of HRM consist of recruiting, training, performance appraisal, motivating
employees, ensuring their good health and safety, managing workplace communication, and
so on. Effective HRM encourages employees to work efficiently towards achieving company
goals and objectives. Now, let’s understand the significant HRM objectives.

Societal Objectives
HRM comprises developing programs to fulfil employees’ economic, psychological, ethical,
and social needs. For example, compensation and benefits programs, equal opportunity
programs, community relations programs, disability employment programs, etc. These
programs aim to meet employees’ societal objectives, motivating and retaining productive
employees. Societal objectives are important because they help the company become more
responsible and sustainable.

38
Example of Societal Objectives
McDonald’s aims to hire 1 million people from underrepresented communities by 2026. It
has several diversity and inclusion initiatives, including unconscious bias training, diversity
hiring goals, and employee resource groups. The company commits to reduce its greenhouse
gas emissions by 36% by 2030.
By promoting diversity and inclusion, supporting employee development, promoting a safe
and healthy work environment, and engaging in CSR, McDonald’s is helping to create a
better world for its employees, customers, and the communities it serves.
Organizational Objectives
One significant objective of HRM is to ensure the availability of the correct number of
employees with the right skills at the right place. HRM goals and strategies are designed to
optimize a business's performance through the effective management of its employees. These
objectives often include attracting and retaining top talent and fostering a positive and
inclusive workplace culture.
It enhances employee skills through training and development programs and ensures their
well-being and satisfaction. By achieving these objectives, HRM aims to align the
workforce’s efforts with the company’s broader goals, promoting organizational success and
growth.
Example of Organizational Objectives
A company offering a well-rounded benefits package, including a competitive salary, yearly
bonuses based on performance, and additional perks like flexible working hours and wellness
programs, is actively working towards its organizational objectives. This approach attracts
top talent and nurtures a happy, motivated, and loyal workforce, steering the company
towards success.
Functional Objectives
The functional objective of HRM is to prepare organizational policies in compliance with
provisional/ territorial and federal laws related to human rights, occupational health and
safety, employment equity, labour relations, and employment standards. This helps
organizations maintain the quality of work life and ensure ethical employee behaviour.
Example of Functional Objectives
Walmart meets its functional objectives through various initiatives, including competitive
salaries and benefits, training and development programs, and a diverse and inclusive
workplace culture. For example, Walmart Academy provides new employees with the skills
and knowledge they need to be successful.
39
At the same time, Walmart Pathways helps current employees earn a college degree without
paying tuition. Walmart also offers financial wellness and wellness programs to help
employees manage their finances and improve their physical and mental health.
Personal Objectives
The personal HRM objective includes acquiring, developing, utilizing, and retaining efficient
employees. This can be possible if employees can accomplish organizational and individual
goals. For this, employees should be provided with adequate training and feedback on their
performance. This helps employees identify areas for improvement and rectify them.
Example of Personal Objectives
Microsoft is committed to creating a culture of learning and development for its employees.
The company offers a variety of training and development programs to help employees
develop their skills and knowledge.
For example, Microsoft’s Microsoft Learn platform offers various free online courses on
Microsoft products and technologies. Microsoft also offers various paid training programs,
such as the Microsoft Certified Professional (MCP) program and the Microsoft Certified
Solutions Expert (MCSE) program.
Microsoft also provides employees with regular feedback on their performance. This
feedback is provided through performance reviews, manager check-ins, and peer reviews.
Microsoft employees are also encouraged to give each other feedback regularly.

Additional Objectives of Human Resource Management

40
Accomplishing Organizational Goals
Organizational goal fulfilment is the starting point of human resource management. Effective
HRM depends on using human resources to achieve organizational objectives and
requirements. An organization's goals include workforce management and employee needs,
such as hiring and training, payroll management, and retirement. To accomplish
organizational goals, HRM requires good planning and execution. HRM is useless without
setting targets, purposes, and allocations. When you know your available resources and
action plan, achieving human resource management objectives is relatively easy.
Work Culture
Employees and workplace culture need to be prioritized when managing human resources
and achieving goals. Workplace culture plays a significant role in determining HRM and
organizational performance.
A human resource manager must be involved when promoting policies that encourage a
better workplace culture. Automated procedures like approving leave requests and
acknowledging reimbursement requests can be helpful. A quick line of business and
employee empowerment contribute to a positive work environment. Establishing and
maintaining positive, open relationships between teams and team members is the first step in
creating a positive workplace culture. Implementing solutions like human management
software could solve more than half of your work. Effective onboarding practices are one
example of a small effort that can improve workplace perception.
Team Integration
The significant objective of HRM is to ensure the team is well organized. Effective
communication between the company’s different divisions and teams is essential. HR must
ensure a solution is available to streamline the integration.
Functional objectives like team integration aim to streamline operations and activities.
Effective interpersonal communication is necessary to ensure efficiency. The key to effective
HRM is to find integration solutions that simplify user access to data. For example,
employees can contact HR staff via the self-service site.

41
Training and Development
Employee productivity and performance are two essential elements that must coexist for a
business to accomplish the objectives of HRM. Employees feel organized and secure when
they have adequate training and growth possibilities. Training techniques significantly impact
successful employment. Giving employees opportunities is a great way to guarantee
workforce management.
Planning, organising, conducting training sessions, and evaluating each onboard might be
challenging when working with employees as part of human resource management. Solutions
like training management software may ease pain by giving you auto-reminders, an
accessible calendar, reporting, and monitoring tools. The human resources manager can
ensure that the business has effective training practices.
Employee Motivation
The primary objective of human resource experts in HRM is to keep everything on track.
Keep distractions and negative energy at a distance. To accomplish this, the workers must
always be looked after and motivated. How can HR motivate staff members?
Give them authority to make decisions, taking into account their perspectives. Invite them to
meetings or decisions every week. Let them participate in the business’s essential issues,
even if they are new. Continue to be positive at all times. Measures of employee appreciation,
like annual performance-based assessments, can also be helpful in human resource
management.
A performance management system with automatic feedback can keep your personnel
engaged and productive throughout the service. If your employees are happy and satisfied,
your company will maintain its goals and ambitions. As a result, effective human resource
management is crucial to keep employees satisfied and happy in the company.
Workforce Empowerment
Empowering employees is a crucial goal of human resource management. Giving employees
more control can increase engagement more than anything else. Providing them with tools
like the ESS (employee self-service) site for human resource administration can also reduce
the need for HR labor.

42
Employees can self-apply for approvals using the website and track them using their mobile
devices. You no longer need to knock on HR’s door for trivial questions. Numerous HR
interactions, such as leave requests, payslip generation, PF account checks, remaining
vacation time, upcoming holidays, management information, etc., become straightforward.
Retention
Employee retention, along with providing leadership opportunities and chances, is one of the
essential purposes and objectives of HR managers. The main goal of human resource
management should be to maintain employee satisfaction and engagement.
The biggest challenge or goal facing HR professionals is keeping employees on board after
the recruiting, onboarding, and training phases. After two months of joining the organization,
employees usually leave. This may be due to a weak management system or a challenging
hiring process.
Data and Compliance
Managing compliances and company/employee data are additional organizational and
functional goals in human resource management. A significant duty is managing the firm’s
payroll compliance obligations for HR managers and professionals and avoiding fines or
penalties.
Before committing to hiring and payroll, pay close attention to norms and regulations. To
sustain effectiveness, it is crucial to avoid unjustified claims. An effective HR manager
ensures that decisions benefit the organization and the hired employee. Even a tiny error in
judgment or calculation can lead to harsh penalties and even the loss of respect.

43
The main objective of HR PRACTICES is to procure the right people for the right job in an
organization. Apart from that, it aims at developing and maintaining a competent workforce
managing them simultaneously in a way that organizational goals are achieved.
Some of the objective of an effective HRM are-

 Hiring competent and efficient employees with a zeal to work towards the
organization’s goals.
 Utilizing the workforce at hand as effectively as possible
 Creating an effective and desirable workplace environment that supports work-life
balance.
 Establishing a culture that increases employee satisfaction.
 Establishing and maintaining amicable relations between the staff and management
 Establishing and maintaining ethical policies internally and externally
 Reconciliation of personal goals with organizational goals

44
SCOPE OF THE STUDY
An organization’s main asset are its people.
Having talented, efficient, and satisfied
employees contributes to the success of an
organization. So, what exactly is the scope
of HR PRACTICES in an organization?
HRM is responsible for the entire lifecycle
of an employee’s term in an organization.
Right from planning their recruitment, their needs, and issues during their tenure to when the
exit the company. Naturally, the scope of Human Resource Management is wide and
expansive.
But just to give you a clear understanding, we have divided it into three major aspects.
Workforce personnel
The main objective here is to ensure the growth and development of employees in alignment
with the organizational goals and objectives. It deals with everything from recruitment and
selection to development of new skills and incentives.
Welfare/ well-being of employees
It deals with creating a close to ideal working environment for employees. It is concerned
with the working conditions and amenities of the workplace. Some of the basic
responsibilities include taking into consideration services like cleanliness, rest and
lunchrooms, housing, transport, health and safety, training, medical services, social security,
and welfare funds.
Employee- workplace relations
Safeguarding employee interests is just as important as hiring the right person. Another key
role of HRM is maintaining relations with the employee union, addressing their concerns, and
settling disputes to maintain a non-chaotic, stress-free workplace and strike a balance
between the employees and the management.
Planning
Planning involves determining the organization’s goals and objectives and creating a strategic
plan to achieve them. For HR, this means procurement of the right personnel for the right
jobs.

45
But first they need to evaluate and keep track of the number of people employed, number of
vacancies, whether the company is facing shortage or has excess staff and selecting
candidates with the right qualifications required to fill those vacant positions.
Job analysis
Job analysis is what provides the basis for staff recruitment, training, and development. It
involves identifying the inherent job requirement, meaning what the job role demands of the
candidate.
Mapping out profiles with details of the skills required responsibilities and duties of the
candidate helps in the recruitment and selection process.
Additionally, it also helps identify the necessary training that needs to be provided to
candidates to help them upskill as well as thrive in the role.
Job Evaluation
Every organization has different hierarchical level roles with distinct, complex
responsibilities associated with each of them. The roles are graded and ranked based on their
nature and level of complexity and appropriate pay is determined and fixed as seen suitable
for the particular role.
Recruitment and Selection
To recruit the right candidates, you need to explore diverse sources. The employer brand
identity also plays a key role in the recruitment process as most candidates base their decision
on brand identity. Because a strong brand speaks volumes about its reputation and can attract
top tier candidates much easily and procure a better-quality workforce. You can make use of
various recruitment tools and techniques to guide you in the process.
Once you have a list of potential candidates with the desired educational qualifications and
the right skills, you need to start the selection process. This involves rigorous screening of
profiles of the potential candidates list. The screening procedure can include reviewing of
application letters, background checks, reference checks, a screening test with a set of
questions to assess the candidate’s skills relevant to the job, and other assessments as
required by the hiring manager.
Orientation and Placement
Post the recruitment and selection process, the HRM is to organize an induction/orientation
program. During this process, the candidate is required to fill out certain paperwork that
could include personal information, previous employment information as well as confirming
their status about taking up the position in your company.

46
In the orientation program, the candidate is made aware of the values, goals, and objectives of
the organization.
Placement involves the settling of the candidate into their designated role at the organization.
They are assigned tasks, duties and responsibilities that encompass the job role. The newly
appointed employees are briefed about the departmental goals and what is expected of the
employee to help achieve those goals.
Training and development
Every candidate, even the best of the lot, requires a certain degree of training to perform their
best at their roles. Once the candidate is placed in their respective job roles, in order to ensure
job efficiency, you must identify their strengths and weaknesses and provide them with the
required training necessary.
The changing technological landscape demands everyone to be at their intellectual best if
they are hoping to excel at their work. Training and development programs can help upskill
candidates with new skills to keep up with the dynamic needs of the job.
Performance Appraisal
Employee performance appraisals are crucial for determining the candidate’s performance at
their job roles. The evaluation of their performance gives the management insights into
whether they meet the standard level or need extra training to improve their performance.
Performance appraisal also helps in determining their eligibility for promotions or pay hikes.
Employee compensation and benefits
One of the biggest motivators for every employee is attractive compensations and benefits.
Providing candidates with bonuses and fair compensation for a job well done. The objective
here is to incentivize the employees to perform their duties at an optimum level to derive the
best results. HRM determines the salaries and wages to be paid as well as rewards to better
performing employees.
Motivation, Employee welfare, health, and safety
As a department dedicated to overlooking the welfare of employees, the HRM of an
organization must focus on providing a safer, cleaner, healthier environment by eliminating
any workplace hazards. Implementation of flexible working hours, encouraging employees to
take paid time off are some ways to motivate their morale to become more productive.

47
RESEARCH DESIGN AND SAMPLING
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
In fact, the research design is the conceptual structure within which research is conducted; it
constitutes the blueprint for the collection, management and analysis of data
Sampling
Data is a term used to describe all the pieces of information upon which decisions will be
made after arranging them in an intelligible form.
Sample Size Determination
The method used to select a representative sample is to first establish a sampling frame i.e. to
define the number of observable events (e.g. Census figures, or electoral registers). There are
general rules about the determination of sample size:
Systematic sampling is commonly used when objects that are arranged in particular series
make up the population (e.g. Houses).

Random Sampling It is a sampling procedure that insures each element in the population on
equal chance of being included in the sample. This sampling process is very simple because it
has only stage of sample selection. For e.g. Drawing the names from a box is the example of
simple random sampling. Now a day’s computer generated random no. utilized for sample
selection.

METHODS OF DATA COLLECTION

PRIMARY DATA
We collect primary data during the course of doing experiments in an experimental research
but in case we do research of the descriptive type and perform surveys, whether sample
surveys or census, then we can obtain primary data either through observation or through
direct communication with respondents in one form or another or through personal
interviews.

48
Primary Data Collection Methods
In primary data collection, you collect the data your self-using methods such as interview and
questionnaires. There are many method of a collecting primary data and the main method
include.
 Questionnaires
 Interview
SECONDARY DATA
Secondary data means data that are already available i.e.., they refer to the data which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data, the he has to look into various from.
Secondary data collection
Secondary data have been collected from various sources involving
 Magazines
 Newspapers
 Internet
 Induction manual etc. that were of consideration help to me.

Some Collected Design and Sample of “HERO MOTOCORP LTD” during a training

49
50
51
Accessories of “HERO MOTOCORP LTD”

52
Two Wheelers Parts of “HERO MOTOCORP LTD”

53
54
Sample Size

Hero MotoCorp is a two-wheeler manufacturer based in New Delhi, India. It has been the
world's largest manufacturer of motorcycles and scooters for over 23 years.

Sample size = approximately 24,000 employees

which have working across six continents

Hero MotoCorp Key Metrics

Investors = VantEdge Partners
Ranked = 5th “among 1098 active competitors”
Annual Revenue = Rs. 36,600Cr “as on Mar 31, 2024”
Employee Count = 16,623 “as on Jul 31, 2024”
Investment & acquisition = Ather Energy & 13 more
Similar Companies = TVS Motor Company & 44 more

Research Instrument:
The Structured questionnaire is used as the research instrument for the study.

Sample Technique
The researcher adopted simple random sampling for the study.

Sources of Data
 Primary Data – Questionnaire, Observation.
 Secondary Data - Files, Record Books, Company Manuals, Websites, Newspapers
Internet and Books.

55
Structure

56
LIMITATION OF THE STUDY

1. Due to constraint of time and resources, the study was conducted in the
regional sector as Hero MotoCorp Ltd., and the results of the study cannot
be generated.
2. The accuracy of the analysis and conclusion drawn entirely depends upon
the reliability of the information provided by the employees.
3. Sincere efforts were made to cover maximum departments of the
employees, but the study may not fully reflect the entire opinion of the
employees.
4. In the fast moving/changing employees behavior, name new and better
things may emerge in the near future, which cannot be safeguard in the
report.
5. Due to non –response from some type of questions, only the responses
were given for 100% were considered in the study.
6. Because of non-availability of some the employees, I could not get the
opportunity to interview personally all the employee.

57
 CHAPTER 6
DATA ANALYSIS
AND
INTERPRETATION

58
DATA ANALYSIS AND INTERPRETATION

HERO MOTOCORP Income Statement Analysis

 Operating income during the year rose 5.8% on a year-on-year (YoY) basis.
 The company's operating profit decreased by 13.5% YoY during the fiscal.
Operating profit margins witnessed a fall and stood at 13.2% in FY21 as against 16.2%
in FY20.
 Depreciation charges decreased by 15.4% and finance costs decreased by 0.5%
YoY, respectively.
 Other income declined by 23.6% YoY.
 Net profit for the year declined by 17.7% YoY.
 Net profit margins during the year declined from 12.4% in FY20 to 9.6% in FY21.
HERO MOTOCORP Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change

Net Sales Rs m 292,526 309,592 5.8%
Other income Rs m 7,306 5,579 -23.6%
Total Revenues Rs m 299,832 315,171 5.1%
Gross profit Rs m 47,383 40,995 -13.5%
Depreciation Rs m 8,458 7,151 -15.4%
Interest Rs m 466 464 -0.5%
Profit before tax Rs m 45,765 38,959 -14.9%
Tax Rs m 9,517 9,133 -4.0%
Profit after tax Rs m 36,248 29,826 -17.7%
Gross profit margin % 16.2 13.2
Effective tax rate % 20.8 23.4
9.6
Net profit margin % 12.4

59
Efficiency analysis Efficiency ratios are metrics that are utilized in analysing a company’s
ability to effectively employ its resources, like assets and capitals, to supply income.
Total Asset Turnover Ratio
Formula= Sales/ Total Assets
Table.1 Total Assets Turnover Ratio

Interpretation:-
A high total assets turnover ratio indicates efficient utilisation of total assets for generating
sales. The above table indicates that the total assets turnover ratio is the highest with 2.44
times in the financial year 2015-16 and lowest in the financial year 2019-20. The efficiency of
utilisation of total assets towards generating revenue from operations is decreasing every year
from financial year 2015-16 to financial year 2019-20.

60
The knowledge/skills (technical & behaviour) imparted through training is relevant to your
work.

Interpretation:-
60% of the employees agreed that training is relevant to their job/work, where as 20% partly
agreed and 20% have disagreed.

61
Fixed Assets Turnover Ratio
Formula=Sales/Fixed Assets

Interpretation:-
A high fixed assets turnover ratio indicates the firm efficiently utilises its fixed assets to
generate sales. The above table indicates that the fixed assets turnover ratio is the highest with
4.78 times in the financial year 2015-16 and the lowest with 2.77 in the financial year 2019-
20. The efficiency of utilisation of generating sales with fixed assets is decreasing every year
from financial year 2015-16 to financial year 2019-20.

62
Capital Turnover Ratio
Formula=Sales/Net Assets

Interpretation:-
The higher the capital turnover ratio the more efficient the utilisation of owners’ and long
term creditor’s funds. The above table indicates that the capital turnover ratio is the highest
with 3.36 in the financial year 2015-16 and the lowest with 1.95 in the financial year 2019-20.
The efficiency of utilisation of owner’s funds and long term creditor’s funds is decreasing
from the financial year 2015-16 to financial year 2019-20.

63
Current Assets Turnover Ratio
Formula=Sales/Current Assets

Interpretation:-
The higher the current assets turnover ratio the more efficient utilisation of current assets. The
above table indicates that current assets turnover ratio is the highest with 4.99 in the financial
year 2015-16 and lowest in the financial year 2019- 20.

64
WORKING CAPITAL TURNOVER RATIO
Formula=Sales/Working Capital

The higher the working capital turnover ratio the efficient the utilisation of working capital.
This table indicates that working capital turnover ratio is the highest with 11.36 in the
financial year 2015-16 and the lowest with 6.69 in the financial year 2019-20.

65
SOLVENCY ANALYSIS
Equity Ratio
Formula= Shareholder’s Equity/ Total Assets

Interpretation:-
Leverage ratios may be defined as those financial ratios which measure the long term stability
and capital structure of a firm. The solvency ratio indicates whether a company's cash flow is
sufficient to meet its long-term liabilities and thus is a measure of its financial health It is
believed that higher the proportion of owner’s fund lower is the risk for potential lenders. The
equity ratio is the highest with 0.753 in the financial year 2019-20 and is the least in the
financial year 2016-17 with 0.688.

66
Debt Ratio
Formula= Total Debt/Total Assets

Interpretation:-
A debt ratio greater than 1 could be risky and mean greater portion of company asset is being
funded by debt. From above table the debt ratio has been the highest with 0.311 in the
financial year 2016-17 and the lowest with 0.246 in the financial year 2019-20. The debt ratio
has shown a decrease indicating the gradual decrease in proportion of debt fund to total assets
in the company.

67
Debt To Equity Ratio
Formula=Total Debt/Shareholder’s Equity

Interpretation:-
A high debt to equity ratio means higher risk foe creditors. From the above table the debt to
equity ratio has been the highest with 0.453 in the financial year 2016-17 and lowest with
0.326 in the financial year 2019-20. The trend shows a gradual decrease in the debt to equity
ratio over the past five years.

68
CHAPTER 7
CONCLUSION
AND
SUGGESTION

69
 CONCLUSION

The need for effective HR practices cannot be ignored in the modern business world.
Through this research paper, we have established that HRM plays a very important in the
performance of an organization. A company can have a great product but without the
support of its staff, it is less likely to be successful. Having a satisfied workforce has
become a competitive advantage for companies as it can ensure that employees provide
their best performance which in turn is reflected on the performance of the company.
HR Practices is definitely a new era in the field of HR. It promises economical use of the most
important resource, Human Capital by ensuring the best suitable job to the person. It also
ensures individuals growth and development. An individual can map his or her competencies
and find the job which suits him the most. In a nutshell it can be concluded that Competency
Mapping helps organizations not only in Selecting Round pegs for round holes but also makes
smaller round into larger one. In simple words it not only ensures the best person is recruited
and placed in the best job suitable to the person, but also through training and appraisal It
makes the less competent person into more proficient. We know that the employees are most
important and unavoidable factor in any organization and therefore the study on competency
mapping is more relevant today. In addition to this, automobile industry is more competitive
today that is why we conducted study on competency mapping of Best Motors. This study
reveals that the employees in the organization are competitive, even though company should
adopt strategies and measures for improving their performance and to compete with the
present competitive environment.

70
 SUGGESTIONS

To improve the problem solving skill of employees, company should adopt various strategies.
Improve employee’s judgment capacity. Expert training should be provided to employees.
Company should promote employee innovating skill.
Reduces stress in organization through entertainment programs.
Company should provide coaching session to increase employee’s competencies.
Company should provide learning seminars and e-learning programs to improve employee’s
knowledge.
To improve competencies of employee’s performance based bonuses should be given.
If possible company can introduce job shadowing in the organization.

71
CHAPTER 8
ANNEXURE

72
 Bibliography
Website:-
 www.google.com
 www.hrmguide.com
 www.wiwkipedia.com

Books:-
 Human Resource Management
By Gary Dessler
 HR from the Outside In: Six Competencies for the Future of Human Resources
By Dave Ulrich, Jon Younger, Wayne Brockbank, Mike Ulrich
 Victory Through Organization
By Dave Ulrich, David Kryscynski, Wayne Brockbank, Mike Ulrich

Magazines:-
 “Business World” – 2016
 “The HR-Digest” – 2024
 “People talk online”- 2005

73
QUESTIONNAIRES

74
 REFERENCE

1. R.Idhayajothi, Dr.O.T.V.Latasri, N. Manjula, A.Meharaj Banu and R.Malini (2014) - A

Study on Financial Performance of Ashok Leyland Limited at Chennai.Volume 16, Issue 6.
2. Pratik. P.Valand (2012)– An Empirical Study of Ratio Analysis Indian Journal of Applied
Research, Volume: I, Issue: II, October 2012
3. C .Padmaprabha (2007) – Accounting for Management , vol.1, pp.18.1-18.16
4. https://en.wikipedia.org/wiki/Hero_MotoCorp
5. https://cleartax.in/g/terms/ratio-analysis
6. https://www.heromotocorp.com/en-in/investors/annual-reports.html
7. https://www.accountingtools.com/articles/ratio-analysis.html
8. https://www.simplilearn.com/financial-performance-rar21-article
9. https://efinancemanagement.com/financial-analysis/efficiency-ratios
10. https://corporatefinanceinstitute.com/resources/knowledge/finance/solvency-r
11. https://www.investopedia.com/ask/answers/040715/what-do-efficiency-ratios-measure.asp
12. https://accountlearning.com/tools-techniques-financial-statement-analysis/
13. https://qsstudy.com/accounting/significance-financial-statement-analysis
14. https://m.heromotocorp.com/
15. https://www.business-standard.com/company/hero-motocorp-237/information/company-
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