UNIVERSITY OF MUMBAI

PROJECT REPORT ON

Human Resource Management of

Amul Company

SUBMITTED BY

PRASAD D. MAHAJAN

MASTERS IN COMMERCE - MANAGEMENT (Part I)

UNDER THE GUIDANCE OF:

Prof. Kanchan Fulmali

PTVA’s

M.L DAHANUKAR COLLEGE OF COMMERCE

Vile Parle (East), Mumbai

2012-2013

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CERTIFICATE

I, Prof. Kanchan Fulmali here by certify that Prasad D. Mahajan of M. L.

Dahanukar College of Commerce of MCOM - Management (Part I) has

completed project on Human Resource Management of Amul Company during

academic year 2012-2013. The information submitted is true and original to the

best of my knowledge.

Signature of Project Guide Signature of the Principal

2

DECLARATION

I, Prasad D. Mahajan of M. L. Dahanukar College of Commerce of MCOM -

Management (Part I), hereby declare that I have completed project on Human

Resource Management of Amul Company in the academic year 2012-13, as per

the requirement of the University of Mumbai as a part of Masters In Commerce -

Management (Part I) programme. The information submitted is true and original

to the best of my knowledge.

Prasad D. Mahajan

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ACKNOWLEDGMENT

I owe a great many thanks to a great many people who helped and

supported me during this project.

My deepest thanks to the Guide of this project Professor Kanchan Fulmali,

for guiding and correcting various documents of mine with attention and care. She

has taken pain to go through the project and make necessary correction as and

when needed.

I would also thank my Institution and my faculty members without whom

this project would have been a distant reality. I also extend my heartfelt thanks to

my family and well wishers.

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INDEX

Sr. No.

PARTICULARSPage No.

1 Executive Summary 6

2 Amul Organization Profile 7

3 Introduction 8

4 History of Amul Organization 9

5 Organization Structure of Amul 12

6 Functions of Human Resource Department of Amul 15

7 Human Resource Information System Of Amul 23

8 HRM Environment 29

9Case Study On Human Resource Information System Of Amul

32

10 Futuristic Vision 37

11 Influencing Factors of 21st Century 38

12 Conclusion 39

13 Bibliography 40

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Executive Summary

AMUL is a co-operative sector. It is the institution of the farmers, for the

farmers and from the farmers. The AMUL gives pleasure to the farmer to charge

the own price, which was not possible in earlier years. This union was born on

14th December 1946. The union provides facilities to its members like more

return, satisfactory price, insemination, first aid, group Insurance, cattle food at

confessional price etc.

I have done case analysis on HRIS of AMUL and from that I have come to

know how organization operates and how the functions have been carried in the

organization. From this is case I have come to know how a wide organization like

AMUL manages its

AMUL dairy has five main departments like finance, personnel,

commercial, milk procurement and production. The finance department does the

clerical work and takes care of inflow and outflows of the cash. The other work of

finance Department is to audit of annual work.

The personnel department handles the work regarding personnel like

appointment, recruitment, promotion, transfer, dismissal, demotion, performance

appraisal etc.

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Organization Profile

Name : Kaira District Co- Operative Milk Producers’

Union Limited, Anand.

Form : Co-Operative Sector under the Co- Operative Society Act.

Reg.Office : Kaira District Co-Operative Milk Producers Union Ltd,

Anand -3881001. Gujarat, India.

Promoters (1) Shri Tribhuvandas Patel

(2) Shri Morarji Desai

(3) Shri Vallabh Bhai Patel

(4) Dr. Varghese Kurien

Auditors : Special Auditors (Milk), Milk Audit Office Anand.

Socities : 1113.

Members : 6, 31,333.

Office Time : 10:00 A.M To 06:00 P.M.

Premises : 49.55 Acres.

Registration : 14th December, 1946.

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Introduction

Human Resource Management:

Human Resource Management has come to be recognized as an inherent

part of management, which is concerned with the human resources of an

organization. Its objective is the maintenance of better human relations in the

organization by the development, application and evaluation of policies,

procedures and programmes relating to human resources to optimize their

contribution towards the realization of organizational objectives.

In other words, HRM is concerned with getting better results with the

collaboration of people. It is an integral but distinctive part of management,

concerned with people at work and their relationships within the enterprise. HRM

helps in attaining maximum individual development, desirable working

relationship between employees and employers, employees and employees, and

effective modeling of human resources as contrasted with physical resources. It is

the recruitment, selection, development, utilization, compensation and motivation

of human resources by the organization.

Human resources may be defined as the total knowledge, skills, creative

abilities, talents and aptitudes of an organization's workforce, as well as the

values, attitudes, approaches and beliefs of the individuals involved in the affairs

of the organization. It is the sum total or aggregate of inherent abilities, acquired

knowledge and skills represented by the talents and aptitudes of the persons

employed in the organization.

The human resources are multidimensional in nature. From the national

point of view, human resources may be defined as the knowledge, skills, creative

abilities, talents and aptitudes obtained in the population; whereas from the

viewpoint of the individual enterprise, they represent the total of the inherent

abilities, acquired knowledge and skills as exemplified in the talents and aptitudes

of its employees.

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The Amul – Meaning

AMUL means “priceless “in Sanskrit. A quality control expert in Anand

suggested the brand name “AMUL” from the Sanskrit word “Amoolya” variants,

all meaning “priceless” are found in several Indian languages. Amul products

have been used in millions of home since 1946.

Today Amul is a symbol of many things; of high – quality products sold at

reasonable prices; triumph of indigenous technology; of the marketing savvy of a

farmer’s organization and proven model for dairy development.

Motto

The main motto of AMUL is to help farmers. Farmers were the foundation

stone of AMUL. The system works only for farmers and for consumers, not for

profit. The main of AMUL is to provide quality products to the consumers at

minimum cost. The goal of AMUL is to provide maximum profit in terms of

money to the farmers.

Vision

Vision of AMUL is to provide and vanish the problems of farmers (milk

producers). The AMUL apparition was to run the organization with co-operative

of four main parties, the farmers, the representatives, the marketers, and the

consumers.

Quality Policy

The motivated and devoted work force of AMUL are committed to

produce whole some and safe foods of excellent quality to remain market leaders

through deployment of quality management system, state of art technology

innovation and eco- friendly delightment of customer and betterment of milk

producer.

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History

In early 1940’s a farmer in Kaira district, as elsewhere in India, derived

his income almost entirely from seasonal crops. The income from milk was paltry

and could not be depended upon. The main buyers were milk traders of Polson

Ltd.-a privately owned company that enjoyed monopoly for supply of milk from

Kaira to the Government Milk Scheme Bombay. The system leads to exploitation

of poor and illiterate farmers by the private traders.

However, when the exploitation became intolerable, the farmers were

frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a

leading activist in the freedom movement. Sardar Patel advised the farmers to sell

the milk on their own by establishing a cooperative union, instated of supplying

milk to private traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order

to gain his Co-operation and help. Shri Dasai held a meeting at ‘Samrkha’ village

near Anand, on January 4, 1946. He advised the farmers to from a society for

collection of the milk. These village societies would collect the milk themselves

and also decided prices for that which would be profitable for them. The district

union was also from to collect the milk from such village cooperative societies

and to sell them. It was also resolved that the government should asked to buy

milk from the union.

However, the government did not seem to help farmer by any means. It

gave the negative response by turning down the demand for the milk. To respond

to this action of government, farmer of Kaira district went on a milk strike. For 15

days not a single drop of milk was sold to the traders. As a result the Bombay

milk scheme was severely affected. The milk commissioner of Bombay then

visited Anand to assess the situation. Finely he decided to fulfill the farmers

demand.

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Thus their cooperative unions were forced at village and district level to

collect and sell milk on a cooperative basis, without the intervention of

government. Mr. Verghese Kurien had main interest in establishing union who

was supported by Shri Tribhuvandas Patel who convinced farmers in forming the

cooperative unions at the village level. ‘The Kaira District Co-operative Milk

Producers’ Union’ was thus established in Anand and was registered formally

under section 10 of Bombay Act VII of 1925 on December 14, 1946. Since then

farmers are selling all the milk in Anand through cooperative union. In 1955 it

was commonly decided the sell milk under the brand name ‘Amul’.

At the initial stage only 250 liters of milk was collected every day. But

with the growing awareness of the benefits of the co-cooperativeness the

collection of milk increased. Today Amul collect 50, 00,000 liters of milk every

day. As the milk is perishable commodity it became difficult to preserve milk for

a longer period. Besides when the milk was to be collected from the far places

there was a fear of spoiling of milk. To overcome this problem the union thought

to develop the chilling unit at various junctions, which would collect the milk and

could chill so as preserve it a for a longer period. Thus, today Amul has more than

168 chilling centers in various villages. Milk is collected from almost 1097

societies.      

With the financial help from UNICEF, assistance from the government of

New Zealand under the Colombo plan, of Rs. 50 million for factory to

manufactory milk powder and butter. Dr. Rajendara Prasad, the president of India

laid the foundation on November 50, 1954. Shri Pandit Jawaharlal Nehru, the

prime minister of India declared it open at Amul dairy on November 20, 1955.

A plant to manufacture balanced cattle feed was formally commissioned

on October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At

the request of the government of India, a new dairy with a capacity to

manufacture 40 tons of milk powder and 20 tons of butter a day was completed in

1963. This was meant to meet the requirement of India’s defense forces. The

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dairy was declared open by ShriMorarji Desai in April, 1965. in 1974, the Kaira

Union setup a plant to manufacture high-protein weaning food, chocolate and

malted food at Mogar, about 8 km south of Anand.

In September, 1981, the second cattle feed plant at ‘Kanjari’ were started.

The succesion of the co-generation project on September 11, 1985, marked a

milestone on the energy front when two gas turbine generators of 1.5 MW each

based on natural gas, were commissioned. On October 31, 1992, Dr. V. Kurien

chairman, National Dairy Development Board, laid the foundation of Kaira

Union’s third dairy with a processing capacity of 6.5 lakh liters of milk a day.

Work on the third dairy and cheese plant at ‘Khatraj’ with capacity for 20 Metric

Ton of cheese per day, began in February, 1994. Also in 1994, Kaira Union put

up bread spread plant at ‘Mogar’ with the assistance from National Dairy

Development Board.

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Organization Structure of Amul

Board of Director

Chairman

Managing Chairman

General Manager

Assistant General Manager

Manager

Deputy Manager

Assistant Manager

Senior Executive

Senior Officer

Senior Assistant

Workers

Grade (A to E)

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Human Resource Department

Introduction:

According to Scoot Clothier And Spriggel Human resource management

as the branch of management which is responsible on a staff basis for

concentrating on those aspects of relationship of management to employees and

employees to employees and with the development of the individual and the

group. The objective is to attain maximum individual between employer and

employees and effective molding of human resources as contrasted with physical

resources.

Personal (Human resource) management plays a very important role for

any organization. The firm having all types of resources like machines, materials,

money, information etc. will not be success in business without effective

manpower. Human capital is the greatest assets of business enterprise and

manpower management is the most important and crucial job because the

managing group is the heart of the company.

Human resource department plays most important role in establishing good

relation and harmony among all.

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Total Employees in Amul

AUTHORITY NO. OF EMPLOYEES/WORKERS

Manager 48

Assistant 101

Officers 180

Workers 846

Total 1175

No. Of Shift:

1st shift time: 08:30 A.M to 04:30 P.M

2nd shift time: 04:30 P.M to 12:30 A.M

3rd shift time: 12:30 A.M to 08:30 A.M

Function of Human Resource Department

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1. RECRUITMENT AND SELECTION

2. TRAINING AND DEVLOPMEN

3. PERFORMANCE APPRAISAL

4. SALARY AND WAGE ADMINISTION

5. EMPLOYEE TURNOVER

6. COMPENSATION

7. INDUSTRIAL RELATION

8. FACTORE ACT

9. INDUSTRIAL DISPUTE ACT

10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Recruitment and Selection Function

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Recruitment:

There are two types of Recruitment sources followed by Amul:

EXTERNAL SOURCE

INTERNAL SOURCES

Internal Sources :

Internal sources include personnel already on the payroll of the

organization.

Present Permanent Employees.

Employee Referrals

Former Employee

External Sources :

These sources lie outside the organization In Amul they consider

following sources for recruitment:

Campus Interview

Unsolicited Application

Application Blank

Placement Agencies

Selection:

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Selection procedure is concerned with securing relevant information about

the applicant. The main objective of selection process is to determine whether an

applicant meets the qualification for a specific job and choose the application that

is most likely to perform well in the job. The Selection process in AMUL is as

under

Vacancy in any department

Approval from M.D

Advertisement

Collection of application

Securitize the application

Interview

Medical checkups

Selection

After selection, the employees generally have probation period. In

AMUL probation period is different for different type of employees.

Probation period for officers is 12 months, 6 months for clerical

employees and 3 month for workers.

Training and Development

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It is a subsystem of an organization. It ensures that randomness is reduced

and learning or behavioral change takes place in structured format. Training is the

process where the work related knowledge, skills and attitude are given to new

employees. By which they aware the policies rules and increase technical and

manual efficiency and create of responsibility.

AMUL has accepted three methods for the training

1. On the job method

2. Off the job method

3. In house training

4 Out house training

Training Procedure in Amul

Identification of need of Training

↓

Module Preparation

↓

Selection of Employee for the Training

↓

Training

↓

Feedback

Performance Appraisal

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Performance appraisal is the process of evaluating the performance and

qualification of employees in terms of the requirement of the jobs for which they

are employed. It is highly useful in making decision regarding the promotion,

transfer, wage and salary administration etc. The AMUL adopts the following

appraisal system

Final confirmation with the recommendation by the divisional heads

comes from the MD on annual basis. His work is evaluated by Check list

Method of Performance Appraisal. These are a various method used to appraise

the performance of an employee. In Amul the following methods are used

Self Appraisal

If individuals understand the objectives they are expected to achieve the

standards by which they are to be evaluated they are to a great extent in the best

position to appraise their own performance .in this method employee himself.

Manager’s Appraisal

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Promotion Period Appraisal For

1 year Managers

3 year Officers

1 year Workers

1.5 year Temporary workers

The general practice is superiors appraise the performance of their

subordinate. Other supervisors, who have close contact with employee‘s work

may also appraise with a view to provide additional information. A higher – level

manager appraise the employees for their performance.

In Amul various attributes consider for the appraisal of employee.

Job knowledge

Work output

Quality of work

Interest in work

Initiatives

Past records

Seniority

This appraisal is also the rating scale. Method appraiser also appraised employee

by following.

Outstanding

Good

Satisfactory

Poor

The overall assessment is done through above rating and also the comment of

reviewing officer is included. Apart from this the performance in liked allowance

is provided in relation with performance that is,

25%

50%

100%

Not allowed

This is provided by and under knowledge of under Managing Director

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Generally in Amul on base of performance appraisal employee of managerial

level gets specials allowance. While for workers they get promotions

Wages and Salary

A common method is followed for the wage and salary administration

according to “Muster roll “.

Timekeeper sends that muster roll to the account department for

attendance of each and every employee. This will analyze and entered

in the computer.

After this salary is calculated for each employee through computer

according to that they prepare salary sleep of employees.

Wage Structure (Approx)

Post Grade Payscale

Managing Director Manager 21000-28000

General Manager Manager 15000-21000

Assistant General Manager Manager 7000-15000

Assistant Clerical 2500-7500

Senior clerk Worker 2000-5000

Human Resource Information System of Amul

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Human Resource Information System (HRIS) is a systematic way of

storing data and information for each individual employee to aid planning,

decision making, and submitting of return and reports to the external agencies.

It merges HRM as a discipline and in particular it’s basic HR activities and

processes with the information technology field.

It can be used to maintain details such as employee profiles, absence reports,

salary administration and various kinds of reports.

Objectives:

To understand, how human resource being managed by the organization.

To study the maintenance of the records of their employees.

To study if organization is using ICT for HR functions and to maintain

database.

To study the users perception about HRIS

Definition:

“A Human Resources Information System, is a system that lets you keep

track of all your employees and information about them. It is usually done in a

database or, more often, in a series of inter-related databases “

Human Resources are an organizational function that deals with issues such as

recruitment and selection, training, appraisal, compensation and performance

management of the employee.

Information System:

A system, whether automated or manual, that comprises people,

machines, and/or methods organized to collect, process, transmit, and disseminate

data that represent user information.

Introduction:

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An information system is an inter-related set of procedures and processes

to provide information for decisions. Information is data that have been processed

so that they are meaningful. It adds to the representation of an idea. It corrects and

confirms previous information. It tells us something which we did not know.

Many organizations have computer-assisted information systems. Thus HRIS is a

system that enables storing of information of Human Resource in every aspect

such as Personal, Academic, Qualification, Family, Medical, Career and

Performance Evaluation, Training & Development & Wage and Salary of

individuals. Unlike manual systems the HRIS enables availability of all such

information in a single screen. Reports on various parameters can be generated

with ease. Moreover reliability of such records is assured.

An information system especially developed for human resource

management is referred to as HRIS – a human resource information system.

Human resource management, when it doesn’t include the human resource

planning function, requires only a basic HRIS. If this basic HRIS is

computer-supported, it is likely to include transition processing system or

management information system.

An information system provides for the accumulation by gathering,

processing by deleting extraneous information, deciding among divergent

information and putting the information in a logical arrangement that

promotes its understanding.

Finally, the information is stored in a readily accessible configuration.

HR Information System Includes:

This system includes the employee name and contact information and all

or some of the following:

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Department

Job Title

Grade

Salary

Salary History

Position History

Employee details (Personal & Professional)

Employee Posting information on appointment /transfer

Employee promotion/ appointment information

Employee Service verification details

Employee Leave Information including(Leave available , leave availed,)

Employee confidential report information

Employee Training information

Needs of HR Information System

Human resource manager requires considerable amount of data for

planning and control of human resources and for this there is a strong need

of a sound information system.

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Efficiently storing each employee information and data for reference-

personal data management, pay roll accounting, benefits management and

planning.

Enabling informed decision making in day-to-day personnel issues,

planning, budgeting, implementing and monitoring Human Resource

function.

Facilitating decision making in areas like promotion, transfer, nomination,

settling employees provident funds, retirement, gratuity, LTC, and earned

leave compensation

Cutting costs.

Improving accuracy

Advantages of HR Information System

Reduction in the amount and cost of stored human resource data.

Availability of timely and accurate information about human assets.

Developing of performance standards for the human resource division.

More meaningful career planning and counselling.

Effectiveness of HRIS

The key to the effective planning of manpower and improvement of

people productivity is an effective HRIS. However, in order to be effective an

information system must take into account the following:

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Adequacy of information: Too much or too little information, both lead

to defective decision-making. Therefore, there must be some

understanding regarding what information and in how much detail and

covering what periods should be maintained.

Specificity: Even where it is not possible to quantify the information, the

information should be made as specific as possible.

Relevance: Information is to be managed in the light of the requirements

of the decision makers. Therefore, HRIS focus on the needs of the

decision-makers and stakeholders rather than on what is interesting or

easily available or palatable to the people. The system, therefore, must

also have the built in capability for deletion and updating of data.

Comprehensiveness: The information should be complete from the point

of view of the decision-maker giving details of who, what, how, when,

where and why.

Reliability: Since the information is going to be the basis of critical

decisions, it must satisfy the requirements of validity and reliability.

Moreover, to ensure effectiveness, not only should the information

provided be relevant and reliable but the delivery system should also be

the most satisfying and cost effective. A wealth of information but not

accessible when needed or available at an inhibiting personal cost in terms

of energy and time, is of hardly any use.

It Supported HRIS

In today’s enterprises, HRIS are typically Information Technology (IT)

supported systems. This is not to say that without IT HRIS cannot be introduced.

But information technology allows much greater effectiveness of HRIS than a

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manual system. Some of the deficiencies of the Manual Systems which an IT

based HRIS overcomes to a considerable extent

Convenience: In IT enabled systems, data entry, update and retrieval are all significantly faster. Redundant data may be easily replaced.

Integration: A computerized system can greatly reduce fragmentation and

duplication of data. All data can be stored in a single system to enable

retrieval of complete picture of each employee or of each defined

parameter in a desired number of permutation and combinations.

Moreover, depending on the requirement, reports can be generated in

different ways that provide an accurate picture. Verification of data and

error rectification are also relatively easy in computerized systems.

Multi-User Benefit

Different people can access the data simultaneously, which facilitates

quick dissemination across geographical and structural boundaries and facilitates

faster decision-making. Moreover, on-line data entry is possible that leads to

automatic up-dating of data resulting into better informed decisions. However, to

obtain these advantages, it is important that the knowledge and expertise is

available to the organization, internally or from outside, to develop and tailor-

make the system to suit the organization’s unique needs.

HRM in a Changing Environment

Environmental challenges refer to forces external to the firm that are largely beyond management’s control but influence organizational performance. They include: rapid change, the internet revolution, workforce diversity,

28

globalization, legislation, evolving work and family roles, and skill shortages and the rise of the service sector.

Six important environmental challenges today are:

a) Rapid change,

b) Work force diversity,

c) Globalization,

d) Legislation,

e) Technology

f) Evolving work and family roles,

g) Skill shortages and the rise of the service sector

Rapid Change

Many organizations face a volatile environment in which change is nearly constant. If they are to survive and prosper, they need to adapt to change quickly and effectively. Human resources are almost always at the heart of an effective response system. Here are a few examples of how HR policies can help or hinder a firm grappling with external change.

Work Force Diversity

All these trends present both a significant challenge and a real opportunity for managers. Firms that formulate and implement HR strategies that capitalize on employee diversity are more likely to survive and prosper.

Globalization

One of the most dramatic challenges facing as they enter the twenty-first century is how to compete against foreign firms, both domestically and abroad. Many companies are already being compelled to think globally, something that doesn't come easily to firms long accustomed to doing business in a large and expanding domestic market with minimal foreign competition. Weak response to international competition may be resulting in upwards layoffs in every year. Human resources can play a critical role in a business's ability to compete head-to-head with foreign producers. The implications of a global economy on human resource management are many.

Legislation

29

Much of the growth in the HR function over the past three decades may be attributed to its crucial role in keeping the company out of trouble with the law. Most firms are deeply concerned with potential liability resulting from personnel decisions that may violate laws enacted by the state legislatures, and/or local governments. These laws are constantly interpreted in thousands of cases brought before government agencies, federal courts, state courts, and t Supreme Court.

How successfully a firm manages its human resources depends to a large extent on its ability to deal effectively with government regulations. Operating within the legal framework requires keeping track of the external legal environment and developing internal systems (for example, supervisory training and grievance procedures) to ensure compliance and minimize complaints. Many firms are now developing formal policies on sexual harassment and establishing internal administrative channels to deal with alleged incidents before employees feel the need to file a lawsuit.

Technology

The world has never before seen such rapid technological changes as are presently occurring in the computer and telecommunications industries. One estimate is that technological change is occurring so rapidly that individuals may have to change their entire skills three or four times in their career. The advances being made, affect every area of a business including human resource management.

Evolving Work and Family Roles

More and more companies are introducing "family-friendly" programs that give them a competitive advantage in the labor market. These programs are HR tactics that companies use to hire and retain the best-qualified employees, male or female, and they are very likely to payoff. For instance, among the well known organizations / firms, half of all recruits are women, but only 5% of partners are women. Major talent is being wasted as many women drop out after lengthy training because they have decided that the demanding 10- to 12-year partner track requires a total sacrifice of family life.

These firms have started to change their policies and are already seeing gains as a result. Different companies have recently begun offering child-care and eldercare referral services as well to facilitate women workers as well as are introducing alternative scheduling to allow employees some flexibility in their work hours.

Skill Shortages and the Rise of the Service Sector

30

Expansion of service-sector employment is linked to a number of factors, including changes in consumer tastes and preferences, legal and regulatory changes, advances in science and technology that have eliminated many manufacturing jobs, and changes in the way businesses are organized and managed.

Service, technical, and managerial positions that require college degrees will make up half of all manufacturing and service jobs by 2000. Unfortunately, most available workers will be too unskilled to fill those jobs. Even now, many companies complain that the supply of skilled labor is dwindling and that they must provide their employees with basic training to make up for the shortcomings of the public education system. To rectify these shortcomings, companies currently spend large amount year on a wide variety of training programs.

A Case Study of Human Resource Information System at Amul

31

Human resource information system, that enables the organization in

collecting, storing, maintaining, retrieving and validating data needed about its

human resource.

HR data are wide in their variety, and include job history (transfers,

promotions, etc.), current and historical pay details, inventories of skills and

competencies, education and training records, performance assessment details,

absence, lateness, accident, medical and disciplinary records, warning and

suspensions, holiday entitlements, pensions data and termination records. An

HRIS normally provides an electronic database for the storage and retrieval of this

data which is, at least potentially, available to anyone who may want to access it.

The important issue however, is- how this IT system is actually used in

carrying out the HR tasks. ERP is an information system to drive the business. It

enables the organization to take systematic decision in the area of planning,

execution and control based on relevant and current information.

AMUL uses the system named ERP ORACLE – Enterprise resource

planning. The areas of application of HRIS as follow.

1. Training management

2. Turnover analysis

3. Succession planning

4. Attendance reporting

5. Accident reporting.

AMUL uses the system centrally in the organisation and over all the plants

of the Amul which is located in various areas such as

Mogar - chocolate plant

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Khatraj plant – cheese plant

Kanjari plant – cattle feed plant.

The system operates in AMUL for different manner, and with the help of

this system different records are maintained with the help of ERP ORACLE. Types

of record maintained through HRIS.

Personnel administration - It will encompass information about each

employee, such as name address, personal details etc.

Salary administration - Salary review procedure are important function of

HRM, a good HRIS system must be able to perform what if analysis and

present the reports of changes.

Leave and absence recording — essentially be able to provide

comprehensive method of controlling leave/absences

Skill inventory - It is also used to store record of acquired skills and

monitor the skill database both employee and organizational level.

Performance appraisal — the system should record individual employee

performance, appraisal data, such as due date of appraisal, scores etc.

Human resource planning — HRIS should record details of the

organizational requirements in terms of positions

Recruitment — Record details of recruitment activities such as cost and

method of recruitment and time to fill the position etc.

Career planning - System must be able to provide with succession plans

reports to identify which employee have been earmarked for which

position.

Collective bargaining — A computer terminal can be positioned in the

conference room linked to database. This will expedite negotiations by

readily providing up to date data based on facts and figures and not

feelings and fictions.

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Database – In database the system records the information of the previous

applicant , who is been not selected for the job this information is useful

to the organization for next recruitment procedure for inviting for job in

this way the cost is saved by the organization because there is no need of

giving advertisement for next recruitment.

Service records – In service records all the details regarding promotion of

an employee , education detail of employees , personal details, in which it

records the employee No , employee working in which location etc .

Employee summary – In employee summary the information regarding

employee is available according to grade wise, designation wise, skilled

wise, and the total information of manpower is available.

Training – The training information of an each employee is being

available through this system because it records that when the employees

is being given training and when will be the next training is to be given to

the employees .

Time keeping: time keeping in Amul is decentralized, plant wise but with

the help of ERP system the record of absence and present record is can be

available at Amul’s head office Anand.

Recruitment: this system is not used in any steps of recruitment process of

the Amul.

In AMUL, the HRIS is not used for the recruitment process as it is done

manually in the organization the recruitment of the is carried in the following way

Vacancy in department

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Receiving of application

Short listing of applicant

There is no role of HRIS (ERP oracle) in the recruitment process, after the

short listing of the application the application which are selected is called for an

personal interview with the general manager of the AMUL. After the candidate is

selected for the particular job, the role of HRIS starts by keeping different types

of records of an employee such as

a) Personal details

b) Previous organization details

c) Training details

d) Service records

e) Joining details

f) Retirement details

HRIS is also useful in the turnover analysis of the Amul; it helps the

organization to know the number of time employees left the organization.

HRIS, is useful in keeping the Accident details of the employees, on the basis

of this reports employees are injured due accident are been given medical

facility and financial help.

The time keeping process of Amul is decentralized , in the various plants of

Amul like Mogar plant, Khatraj plant, Anand plant and Kanjari plant.

If any information regarding any employee absence and present of other

plant is needed by the central head office at Anand, that it is available with the

help of ERP ORACLE,

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User’s Perception

After interviewing the fifteen respondents from the organization I have

come to know that the organization is using the software named “ERP ORACLE

“in HRIS and by observing and interviewing the user of the system the following

data is gathered.

The users of the system is fully satisfied with the present system ERP

ORACLE

The AMUL is using this system since last thirteen years and they are

trying to bring change by implementing new system named SAP which is

under the progress.

With help of HRIS the organization gets the following benefits such as

1. Time saving

2. Cost saving

3. Effective work

HRIS helps to supports the following HR task of the Amul

1. HR development and workplace training

2. Communication

3. Career management (for employees)

4. Decision making

The HRIS system of Amul is fully secured, so there no threat of linking of

any kind of data.

Futuristic Vision

On the basis of the various issues and challenges the following

suggestions will be of much help to the philosophy of HRM with regard to its

futuristic vision:

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There should be a properly defined recruitment policy in the organization that

should give its focus on professional aspect and merit based selection.

In every decision-making process there should be given proper weightage to

the aspect that employees are involved wherever possible. It will ultimately

lead to sense of team spirit, team-work and inter-team collaboration.

Opportunity and comprehensive framework should be provided for full

expression of employees' talents and manifest potentialities.

Networking skills of the organizations should be developed internally and

externally as well as horizontally and vertically.

For performance appraisal of the employee’s emphasis should be given to 360

degree feedback which is based on the review by superiors, peers,

subordinates as well as self-review.

360 degree feedback will further lead to increased focus on customer services,

creating of highly involved workforce, decreased hierarchies, avoiding

discrimination and biases and identifying performance threshold.

More emphasis should be given to Total Quality Management. TQM will

cover all employees at all levels; it will conform to customer's needs and

expectations; it will ensure effective utilization of resources and will lead

towards continuous improvement in all spheres and activities of the

organization.

There should be focus on job rotation so that vision and knowledge of the

employees are broadened as well as potentialities of the employees are

increased for future job prospects.

For proper utilization of manpower in the organization the concept of six

sigma of improving productivity should be intermingled in the HRM strategy.

The capacities of the employees should be accessed through potential

appraisal for performing new roles and responsibilities. It should not be

confined to organizational aspects only but the environmental changes of

political, economic and social considerations should also be taken into

account.

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The career of the employees should be planned in such a way that

individualizing process and socializing process come together for fusion

process and career planning should constitute the part of human resource

planning.

Major Influencing Factors in 21st Century

In the 21st century HRM will be influenced by following factors, which

will work as various issues affecting its strategy:

Size of the workforce.

Rising employees' expectations

Drastic changes in the technology as well as Life-style changes.

Composition of workforce. New skills required.

Environmental challenges.

Lean and mean organizations.

Impact of new economic policy. Political ideology of the Government.

Downsizing and rightsizing of the organizations.

Culture prevailing in the organization etc.

Conclusion

To conclude Human Resource Management should be linked with

strategic goals and objectives in order to improve business performance and

develop organizational cultures that foster innovation and flexibility. All the

above futuristic visions coupled with strategic goals and objectives should be

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based on 3 H's of Heart, Head and Hand i.e., we should feel by Heart, think by

Head and implement by Hand.

The times when management could arbitrarily dictate terms to the

employees and tread upon their rights is something that is not relevant anymore.

With the ballooning of the white collar workforce, it becomes necessary for

organizations to pay more attention to the needs of the employees more than ever.

In recent years, with the high levels of attrition in the service sector, it has

become imperative for firms to have a structured separation plan for orderly exits

of employees. Of course, the concept of “pink slips” or involuntary exits are

another matter altogether and involve some bitterness that results because of the

employee losing his or her job. In conclusion, it is our view that employee

separations must be handled in a professional and mature manner and though

attrition is a fact that concerns everyone in the industry, once an employee decides

to leave, the separation must be as smooth as possible.

BIBILOGRAPHY

www.amul.co.in

www.hrm.com

human resource management – ashwathappa

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