hr department setup
TRANSCRIPT
PROJECT REPORT
ON
Role of HR Manager in HR Department Setup
AT
UNIQUE AIR EXPRESS
BYNIRANJAN NANDKUMAR KULKARNI
UNDER THE GUIDANCE
PROF. ROHIT OKE
IN PARTIAL FULFILLMENT OF MASTERS DEGREE IN BUSINESS MANAGEMENT,
UNIVERSITY OF PUNE, PUNE
YEAR 2009-2011
TRINITY COLLEGE OF ENGINEERING OF RESEARCH
1
ACKNOWLEDGEMENT
First and foremost, I wish to express my devoted indebtedness and sincere
gratitude towards my guide Prof. Rohit Oke, Professor, Trinity Institute of
Management, Pune whose kind and incomparable guidance, keen interest,
inspiring encouragement, valuable suggestions and direction enable me to
undertake research work and always turn me towards successful path.
I am highly grateful to Dr. Jyoti Gogte, Director of TIMR and Dr. Jayant
Sankpal, Principal of Trinity college of Engineering and Research, for enlighting
my path and providing all facilities, without which this project work could not be
possible.
A special word of thankful appreciation for the work in by Prof. Ejaz
Qureshi and Prof. Vineeta Shukla, who have been most willing to give this
project to the final shape.
It is proud privilege to express sincere and well devoted thanks to Mr.
Nilesh Deshmukh, Managing Director, UNIQUE AIR EXPRESS, Pune for
giving me an opportunity to work on my study in his company.
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Executive summary:
Money, Men, Materials, Markets are very important five Ms. which are essentials for
carrying on the activities of production and selling the same in order to carry on the business of
an organization or enterprise. The proper and efficient management of these five Ms is very
essential for the success of the organization. But the management of men and human resources is
the most fundamental. It is really a challenging task. In wider sense, human resources create
organizations and make them survive and prosper. If human resources are neglected or not
properly managed, the organization is not likely to do well. The human resources of an
organization is considered as one of the largest investments and plays a very crucial role in the
development process of an organization at the micro level and of the whole economy at the
micro level. For full and proper utilization of natural resources, machines, technology, etc.,
efficient and committed manpower is very essential. Hence, successful human resource
management is very essential for the growth and success of an organization.
As Human resource management is essential, the separate department is dedicated to this
management, this department is known as Human Resource Department. If a company has not
developed HR Department, a company may face numerous problems. The functions of Human
Resource Management will not be executed properly. If the selection procedure itself would be
wrong or probably not scientific then one can not expect optimum output. The basic problem is
that the employee will not be recognized. In this study, the need of HR department is analyzed.
The data is collected from the company, which is established nearly 8 years back but the HR
department is not developed yet. The problems of the employees are understood and studied.
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Index
Sr. No Topic Page
1 Introduction 6
2 Analytical aspect and practical HR practices with Theoretical
background
13
3 Importance and Scope of Company’s History
29
4 Analysis and Interpretation of Data
35
5 Conclusion and Suggestion 50
6 Questionnaire 52
7 Bibliography 55
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CHAPTER: 1
INTRODUCTION
INTRODUCTION
5
In this competitive world everybody is striving for excellence. If a small company steps
ahead for an excellence is no wonder. In subsequent paragraphs the description is given for a
company which is existed for nearly 5 years. Only the problem was, this company did not have
any HR department. A thought came into management discussions that there has to be an HR
Department as company’s wings were spreading in every direction. The need and importance of
HR department and this topic is given below.
1.1Importance of HR Department
A business of industrial concern makes use of money, materials, machines and men for
carrying out its activities and realization of its objectives. Success of any organization is
depending upon a man because after all he is going to use money, material and machine. Hence
Human resource has got an immense importance. Human resource implies the persons employed
in a concern for performing jobs and the abilities, intelligence, skills and competence possessed
by these persons. It is the responsibility of the management to extract skills and abilities of
employees and to make use of it at right place. At present every enterprise has to face
competition and uncertain environment. Human beings possess the ability to face changing
situations and make necessary adjustments in the ways of working. If the human resources
available in the enterprise are managed efficiently, the abilities of the employees to face
uncertainties can be developed and confidence can be created among them that they can face any
type of challenge and become successful. For morale building this is a very effective technique.
Before the industrial revolution HR department was known as Personnel Department. The
basic difference between Human Resource Management and Personnel Management is its
thought process. In PM human beings were treated as a profit centers and in HRM human beings
are treated as Resources. There were no labour laws, no welfare activities and no fair
compensation policies. Management used to treat human beings as machines. Employee’s
morale was low. There were no motivational techniques. Hence the need of proper HR
Department was generated.
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Every single human being works for meeting his needs. Management has to take care and
understand what are different needs of people employed in the organization? Employees expect
that they should be treated as human beings and not machines. If they are recognized
somewhere, they feel attached to the organization. Instead of feeling of ‘I’ or ‘me’ everybody
should feel ‘we’, ‘our’ etc. This is a very significant role of HR department.
The major tasks what HR department has to perform are, fair remuneration, and provision of
good working conditions, welfare facilities and opportunities for promotion. There are various
welfare activities which are carrying out in various organizations now days. In this context HR
department plays vital role. No doubt even if HR department would not be existed in the
company, then also management can carry out these all activities but the effectiveness is
indistinct. HR manager bridges the gap between management and employees in the organization.
Government has created various labour laws with the objective of protecting interests of the
employees. Such labour laws relate to employment, payment of remuneration, discharge from
service, payment of bonus, working conditions etc. management has to study the provisions of
labor laws applicable to them and accordingly various decisions related to the employees should
be taken.
Hence with the increasing importance of human resources is realized by the management of
business and industrial concerns and therefore for the management of human resources, a
separate department known as ‘Human Resource Department’. However, the organization or
structure of the Human Resource Department depends upon the size of the enterprise, form of the
organization adopted and the types of the activities to be carried out by the department. The
management of the enterprise decides how the HR department should be organized and in how
many sections, it should be divided.
1.2 Selection of the organization
As far as my project title is concern, I was searching for such an organization which does not
have an HR department but the management is willing to form or to set an HR department.
Fortunately I could get an opportunity to complete my summer internship project in Unique Air
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Express (UAE). UAE is an organization which has established 8 years back, but somehow
management had not thought about forming an HR department. When I approached them they
allowed me to interfere. After 8 years of establishment they thought of forming an HR
department. The company profile and history of the company is given in subsequent paragraphs.
1.3 Research Methodology
1. What is mean by a term Research?
Research is a common phrasing refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
investigation.
“A careful investigation or inquiry especially through search for new facts in a branch of
knowledge”
-The Advanced Learner’s Dictionary
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2. Sampling:
i) Sample design:
A Sample design is nothing but a plan of our study which generally helps us to proceed
further. Research design is the conceptual structure within which research is conducted; it
constitutes the blue print of the collection, measurement and analysis of the data. Decisions
regarding what, where, when, how much, by what means concerning an inquiry or a research
study constitute a research design. There are different types of sample designs based on two
factors viz., the representation basis and element selection technique. On the representation basis,
the sample may be probability sampling or it may be non-probability sampling. Probability is
based on the concept of random selection, whereas non-probability sampling is non-random
selection. On element selection basis, the sample may be either unrestricted or restricted. When
each sample element is drawn individually from the population at large, then the sample so
drawn is known as unrestricted sample, whereas all other form of samplings are covered under
the term restricted sampling.
ii) Questionnaire Design:
This method of data collection is quite popular, particularly in case of big enquiries. It is
being adopted by private individuals, research workers, private and public organizations and
even by governments. In this method a questionnaire is sent to a persons concerned with a
request to answer the questions and return the questionnaire. A questionnaire consists of number
of questions printed or typed in a definite order on a form or set of forms. The questionnaire is
mailed to respondents who are expected to read and understand the questions and write down the
reply in the space meant for the purpose in the questionnaire itself. The respondents have to
answer the questions on their own.
3. Data Collection:
For any study a data is required. For any research a data is collected by various means. But
first of all we must know that what are the types of data? The types of data are:
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i) Primary Data
ii) Secondary Data
i) Primary Data:
The primary data are those which are collected afresh and for the first time, thus happen to be
original in character.
ii) 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.
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Primary Data
InterviewObservation Questionnaire
Secondary Data
Governmental Publications
Journals Foreign Publications
Internet
4. Sample Size:
The sample size of my study consists of 25 respondents.
5. Sample Area:
The study is conducted with the help of employees of Unique Air Express.
6. Research instrument:
A structured questionnaire is used as a research instrument. A questionnaire is consisting of
multiple choice questions in order to get the data.
7. Statistical tool:
The statistical tools used for analyzing data collected are percentage method and diagrams.
1.4Objectives of the Study:
1. To identify need and functions of HR department
2. To setup and implement an HR department.
1.5 Limitations of the study:
1. Unwillingness of respondents: Collection of a data was a very tough job. Respondents
were not willing to fill the questionnaire. Again because of unwillingness respondents
opinion may vary with actual response.
2. Small no. of respondents: Again the sample size of the study is very small i.e. 25. It was
very hard to interpret the conclusion with such a less response.
3. Time: With a short period of time it was a very difficult to complete a whole project. HR
department setup is not a small task. It is a time consuming process. Within a stipulated
time merely a setup could complete. The post setup analysis is missing.
4. Lack of awareness: The management was not aware of HR role and responsibilities. It
was hard to implement an HR department in such an environment.
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CHAPTER: 2
ANALYTICAL ASPECTS OF PRACTICAL HR
PRACTICES THEORETICAL BACKGROUND
Human Resource Management, as a branch of Management, is comparatively of recent
origin. Though Human Resource Management activities have probably been performed since
ancient times and Human resource has always been a key source as a formal discipline, its roots
are traceable to the period immediately following the industrial revolution. It can be said that
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pioneering work of the masters of management like Peter Drucker, Douglas MacGregor, etc. laid
the formal foundation of Human Resource Management.
Various definitions of Human Resource Management are given in subsequent paragraphs.
Prof. Cynthia D. Fisher, Lyle F. Schoenfeldt and James B. Shaw state that,
“HRM involves all management decisions and practices that directly affect or influence
the people or Human resources who work for the organization”.
Prof. K. Aswathappa states that,
“Human Resource Management is a management function that helps manager to recruit,
select, train and develop members for an organization”.
According to Prof. George T. Milkovich and Prof. John W. Boudreau,
“Human Resource Management is a series of decisions that affect the relationship
between employees and employers; it affects many constituencies and is intended to influence
the effectiveness of employees and employers”.
Human Resource Management: Objectives and Functions
Objectives:
The important objectives of HRM are listed below.
1) To create an able and motivated workforce and ensure its effective utilization to
accomplish various organizational goals.
2) To establish and maintain suitable and sound organizational structure in order to secure
integration of employees and groups and to create desirable working relationship
amongst them for increasing organizational effectiveness.
3) To create atmosphere to maintain high morale, to encourage value system and
environment of trust, mutually of interests.
4) To provide training and education for developing the human resources.
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5) To provide opportunities for participation, recognition, etc. and foe a fair, acceptable and
efficient leadership.
6) To provide attractive incentives, monetary benefits, social security measures and welfare
facilities, various non-monetary rewards, benefits etc. in order to ensure the retention of
competent employees.
7) To adopt such policies which recognize merits and contributions by the employees.
8) To ensure that there is no threat of unemployment and to give the confidence to the
employees regarding stability of their employment.
9) An organization has to bear in mind that its responsibility towards the society as a whole.
The society may not desire to enforce reservation in hiring and the laws of leading to
discrimination affecting the society badly or if certain organizational decisions have some
negative impact on the society. Such decisions should be avoided.
The Primary and foremost important objective of HRM is to ensure the availability of
competent and willing work force to an organization. Beyond this there are other objectives too.
If we want to categorize the above mentioned objectives of HRM, that can be done in
following manner.
Personal Objectives
Functional Objectives
Organizational Objectives
Societal Objectives
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Societal ObjectivesSocietal Objectives
Organizational ObjectivesOrganizational Objectives
Functional ObjectivesFunctional Objectives
Personal Objectives
Personal Objectives
Societal Objectives:
Societal Objectives are, to be ethically and socially responsible to the needs and
challenges of the society while minimizing the impact of such demands upon the organization.
Organizational Objectives:
Organizational Objectives are, to recognize the role of HRM in bringing about
organizational effectiveness.
Functional Objectives:
Functional Objectives are, to maintain the department’s contribution at a level
appropriate to the organization’s needs.
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Personal Objectives:
To assist employees in achieving their personal goals is a personal objective of HRM.
Functions:
In order to realize the objectives stated above, HRM must perform certain functions.
Generally, it may be stated that there is a correlation between the objectives and functions. In
other words, some functions help realize specific objectives.
HRM Objectives Supporting Functions16
1. Societal Objectives 1. Legal compliance
2. Benefits
3. Union-Management Relations
2. Organizational Objectives 1. Human Resource Planning
2. Employee relations
3. Selection
4. Training and Development
5. Appraisal
6. Placement
7. Assessment
3. Functional Objectives 1. Appraisal
2. Placement
3. Assessment
4. Personal Objectives 1. Training and Development
2. Appraisal
3. Placement
4. Compensation
5. Assessment
Table: HRM objectives and related Functions
There are lots of important functions of Human Resource Management; some of them are
enlisted in subsequent paragraph.
Recruitment and Selection:
Recruitment is understood as the process of searching for and obtaining applicants for
jobs, from among whom the right people can be selected. Theoretically, recruitment process is
said to end with the receipt of applications, in practice the activity extends to the screening of
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applications so as to eliminate those who are not qualified for job. In reality, the term is used to
describe the entire process of employee hiring. Recruitment represents the first contact that a
company makes with potential employees. It is through recruitment that many individuals will
come to know a company, and eventually decide whether they wish to work for it. But there is a
difference between recruitment and selection. Selection is the process of picking individuals (out
of pool of job applicants created with the help of recruitment process) with requisite
qualifications and competence to fill jobs in the organization. Recruitment process is said to be a
positive in its approach as it seeks to attract as many candidates as possible. Selection, on the
other hand, is negative in its approach as it seeks to eliminate as many unqualified applicants as
possible in order to identify the right candidates.
Training and Development:
Training and Development refer to the imparting of specific skills, abilities and
knowledge to an employee. More clearly, training and Development may be understood as any
attempt to improve current or future employee performance by increasing an employee’s ability
to perform through learning, usually by changing the employee’s attitude or increasing his or her
skills and knowledge. The need for training and development is determined by the employee’s
performance deficiency, computed as follow:
Training and Development need= Standard performance – Actual performance
We can make distinction among training, education and development. Such distinction
enables us to acquire a better perspective about the meaning of the terms. Training refers to the
process of imparting specific skills. Education, on the other hand, is confined to theoretical
learning classrooms. Development refers to those learning opportunities designed to help
employees grow. Development is not primarily skills oriented. Instead, it provides general
knowledge and attitudes which will be helpful to employees in higher positions.
Appraising and Managing Performance:
In simple terms, Performance appraisal may be understood as the assessment of an
individual’s performance in a systematic way, the performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership abilities,
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supervision, dependability, co-operation, judgment, versatility, health and the like. The other
terms used for performance appraisal are: performance rating, employee assessment, employee
performance review, personnel appraisal, performance evaluation, employee evaluation and
merit rating. In a formal sense, employee assessment is as old as concept of management, and in
an informal sense, it is probably as old as mankind. Job analysis sets out requirements, which are
translated into performance standards, which in turn form the basis for performance.
Managing Basic Remuneration:
Remuneration is the compensation an employee receives in return for his or her
contribution to the organization. Remuneration occupies an important place in the life of an
employee. His or her standard of living, status in the society, motivation, loyalty and productivity
depend upon the remuneration he or she receives. For the employer too, employee remuneration
is significant because of its contribution to the cost of production. Besides, many battles are
fought between the employers and employees on the issues relating to wages or bonus. For HRM
too, employee remuneration is a major function. The HR specialist has a difficult task of fixing
wages and wage differentials acceptable to employees and their leaders. Hence employee
remuneration is an important function.
Managing Employee Benefits and services:
Employee benefits and services include any benefits that the employee receives in
addition to direct remuneration. Benefits and services, however, are indirect compensation
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Job Analysis Performance Standards Performance Appraisal
Describes work and personnel requirement of
a particular job
Translate job requirements into levels
of acceptable or unacceptable performance
Describes job relevant strength and weaknesses
of each individual
because they are usually programs, employee benefits or hidden payroll. Nearly every
organization in our country provides benefits and services to its employees. These fringes
continue to grow in their importance. Several reasons account for this trend. An organization
with the introduction of fringes, seeks to enhance employee morale, remain cost-effective and
introduce changes without much resistance.
HRM Models:
After functions and objectives let’s now discuss HRM Model. Some models are
discussed as follow:
The Harvard Model
The Harvard model claims to be comprehensive in as much as it seeks to comprise six critical components of HRM. The dimensions included in the model are: stakeholders’ interests, situational factors, HRM policy choices, HR outcomes and long-term consequences.
The stakeholders’ interests recognize the importance of ‘trade offs’ between the
interests of owners and those of employees. Trade offs also exists among other interest groups.
But this is the challenge of HR manager. He/she needs to balance the interests of all
stakeholders’ interests.
The situational factors influence management’s choice of HR strategy. The contingent
factors included in the model include work force characteristics, management philosophy, labour
market, task, technology, laws and social values.
HRM policy choices emphasize the management’s decisions and actions in terms of
HRM can fully be appreciated only if it is recognized that they result from an interaction
between constraints and choices. The model depicts management as a real actor, capable of
making at least some degree of unique contribution within environmental and organizational
parameters and of influencing those parameters themselves overtime.
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Stakeholders’ interests
Stakeholders
Management
Employee groups
Government
Community
Union
Fig: The Harvard Model of Human Resource Management
Organizational commitment, employee competence, congruence and cost effectiveness
constitute HRM outcomes. The assumption here is that employee have talents which are rarely
exploited for organizational growth and that they are willing to grow with the organization if a
participative environment is available.
The long term consequences include societal well being, organizational effectiveness
and individual welfare. There is obvious linkage among the three. Employee welfare leads to
organizational effectiveness and efficacy of all organizations contribute to societal well being.
The feedback loop is the sixth component of the Harvard Model. As was stated above,
situational factors, influence HRM policy and choices and are influenced by long term
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Situational Factors
Workforce characteristics
Business strategy and conditions
Management philosophy
Unions
Laws and societal values
Human Resource Management policy choices
Employee influence
Human resource flow
Reward system
Long-Term consequences
Individual well being
Organizational effectiveness
Societal well being
Human resource outcomes
Commitment
Competence
Congruence
Cost-effectiveness
consequences. Similarly, stakeholders’ interests influence HRM policy choices and in turn are
impacted by long term outcomes.
The Guest Model
Yet another HRM model was developed by David Guest in 1997 and claims to be much
superior to other models. The details will justify the claim. This model claims that HR manager
has specific strategies to begin with, which demand certain practices and when executed, will
result in outcomes. These outcomes include behavioral, performance related and finance.
Fig: The Guest Model of HRM
The model emphasizes the logical sequence of six components: HR Strategies, HR
practices, HR outcomes, behavioral outcomes, Performance results and financial consequences.
Looking inversely, financial results depend on employee performance, which in turn is the result
of action oriented employee behaviors. Behavioral outcomes are the results of employee
commitment, quality and flexibility, which in turn, are impacted by HR practices.HR practices
need to be in tune with HR strategies which invariably aligned with organizational strategies.
Role and Responsibilities of HR Manager:
Increasing importance of human resources is realized by the management business and
industrial concerns and therefore for management of human resources a separate department
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HRM Strategies
HRM Practices
Hiring
Training
Appraisal
Relation
HR Outcomes
Commitment
Quality
Flexibility
Behavioral Outcomes
Motivation
Co- operation
Citizenship (Industrial)
Performance Outcomes
Productivity
Innovation
Quality
Turnover
Financial outcomes
Profits
ROI
known as Human Resource Department is created in the organizational structure. The HR
department is headed by an executive who may be called as HR Manager. He is the professional
in the field of human resources and works directly under the top management.
The management of human resource is basically concerned with creation of harmonious
working relationships among its participants and bringing about there utmost individual
development. Various functions which are performed by a human resource manager have basic
objective to bring together expertise in the most scientific way and also to create the attitudes
that motivate the people in the organization to achieve the goals of the organization
economically, effectively, efficiently and speedily. From this point of view, human resources
who affect the relationships between employers and employees and also to consider the inter-
relationships among these decisions. It is the primary function of a human resource manager to
manage the human resources of his organization to attain the objectives of the organization.
From the primary responsibilities of human resource manager enumerated below.
1. To develop properly a thorough knowledge of corporate culture, policies, plans, etc.
2. To involve actively himself in organizations strategies formulation.
3. To initiate change and act as an expert and facilitator.
4. To bring co-ordination among the people working in the organization and their working,
so that the objectives of the organization can be achieved effectively and efficiently.
5. HR manager is expected to act as an internal change agent and consultant.
6. To develop various organizational teams and their working relationship with other teams
and individuals.
7. To identify various problems, especially in the human resources areas and to determine
appropriate solutions for those problems.
8. To design and develop structured learning programmes to help to accelerate learning for
employees and their groups.
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9. HR manager has to take many decisions which affect the relationships between the
employers and employees. For example, how many employees to be appointed at what
levels of skills and experience, whom to be trained and promoted, how much to pay,
how to tackle the general problems of the employees and to handle dissatisfied
employees etc. Many decisions are very complex and complicated. HR Managers’ role is
very important in this respect and he has to take decisions very carefully.
10. To design suitable HR systems for producing maximum impact on organizational
performance and development.
11. To provide support services for the implementation of HRD programmes effectively.
12. To take necessary steps to ensure the full and optimum use of available resources and
competencies and to create commitment among the people working in and for the
organization to meet consumer’s needs. There must be smoothest flow of products and
services to consumers; otherwise the consumers cannot be satisfied.
13. To evaluate the impact of HRD practices and programmes practiced and to communicate
their results for further development.
14. To suggest long-term strategies for organizational excellence.
Wings of Human Resource Management:
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Stages Involved in HR department setup:25
Prospects of HRM
Industrial Relations
Employee Maintenance
Employee Motivation
Employee and Executive
Remuneration
Employee Hiring
Nature of HRM
Human Resource
Management
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Review the current practice (If any)
Audit all HR activities that are performed till date
Review the current practice (If any)
Audit all HR activities that are performed till date
Understand the organization
Understand the organizational structure
Understand the organization
Understand the organizational structure
Discuss the value and beliefs with senior management and need for HR Department
Discuss the expectations from HR department
Discuss the value and beliefs with senior management and need for HR Department
Discuss the expectations from HR department
Even though the HR department is not there presently, still number of HR activities is being carried out in the organization. We
have to analyze those activities.
Even though the HR department is not there presently, still number of HR activities is being carried out in the organization. We
have to analyze those activities.
Give priority to the tasks such as
URGENT, NOT URGENT
Give priority to the tasks such as
URGENT, NOT URGENT
Review HR Manual
Start up with
HR Department objectives
Strategies
Draft on Recruitment and Selection process
Draft on organizational structure
Draft on payroll/ compensation/ Admin
Draft on new joining formalities and their training program.
Review HR Manual
Start up with
HR Department objectives
Strategies
Draft on Recruitment and Selection process
Draft on organizational structure
Draft on payroll/ compensation/ Admin
Draft on new joining formalities and their training program.
CHAPTER: 3
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Form a record of all the employees. The record contains Name, address, phone
number, designation, joining date, hobbies and birth date.
Form a record of all the employees. The record contains Name, address, phone
number, designation, joining date, hobbies and birth date.
Preparation of files for the records of Phone bills, Leaves, Expenses on welfare activities,
contacts of external parties.
Preparation of files for the records of Phone bills, Leaves, Expenses on welfare activities,
contacts of external parties.
IMPORTANCE AND SCOPE OF COMPANY’S
HISTORY
Company Profile: Name of the Company UNIQUE AIR EXPRESS Express Services, Unique Solutions.
Addresses: Pune (Corporate office)130, Siddhivinayak Apartment,Pune- 30. Telephone- 0091-20-24491073/24462362
Mumbai Office
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Gali No. 1, Gala No. 26, Koldongari, Andheri (E)Mumbai-400069Telephone- 022- 26848812/26845183
Strengths:Started as a mere express operator, today we have spread our wings with our worldwide
associates to form an extensive international transportation network. With offices located in
Pune, Mumbai, Bangalore, London, Dubai, Singapore, hongkong and having its channel partners
across the world. Unique Air Express offers comprehensive international transportation solutions
to the customers around the world.
The company has Global experience with local knowledge and tailor made solutions for
customer time building shipments.
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Technology Back Up: Software Interlinked
SMS tracking by consignment No.
Consignee Messenger System/ Expected delivery dates
A completely integrated information and communication infrastructure
State of the art tracking system developed by our own technocrats. To experience
log on to
www.uaxglobal.com
Team:As a solution provider Unique Air Express invests in building knowledge workers rather
than employees. Only the best and qualified people are recruited to provide our clients with the
customized services. We organize various training programs to keep our work force updated.
Thus they are empowered to act as the creative solution providers who are committed to provide
the best quality service to our customer.
HR Department Objectives for Unique Air Express:
Employee Develop a highly skilled workforce
Minimize employee turnover
Customers Increase customer satisfaction Minimize customer turnover
(retention)
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Increase customer baseQuality Quality the first time
Quality every time Minimize product returns and
allowances Optimize the cost of quality
Financial performance Minimize product cost Maximize profitability Lead industry in sales per
employeeOperations Minimize product lead time
Minimize inventory levels Reduce non-value added
activities
History of the Organization:
Some 8 years ago two friends from the same background came together for establishing
service standards in courier and logistics industry. They almost gave challenge to all established
brands in this sector. The main challenge or barrier or threat in front of them was to penetrate in
the market, with new ideas with new tactics. As the owners of the company were belong to
middle class families. They did not have any background of business nor did they have any
academics in business schools. Still they struggled for visibility of brand of UNIQUE AIR
EXPRESS. Earlier they focused on pune’s own people for small consignments. As soon as they
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setup themselves they focused on logistics part. Now the target customers for the company were
a CORPORATE.
The company started with 4 computers. The area covered by the company was a small
room. The people involved in the day-to-day activity were multi skilled. There were no separate
departments. But at the same time the company was expanding its wings. The number of
consignments was increasing as days were passing. The time came when the owner of the
company thought there should be a separation of the department. And he separated the
departments. Now the departments were as follows:
a) Marketing
b) Finance
c) Operation
Each department was consisting of one departmental head and his subordinates. Now the
company was in great time. The strength of the company is its service value. The big companies
can not give or provide personalized service. This is the biggest assets for this company. Now the
company has decided the targets for marketing people. There was a need of some business
generators. One person cannot handle all the marketing activity. The same case was there with
finance department also, the finance department was in a need of some good finance background
people for taking care of all transactional activities of growing business. Hence again the owner
recruited some telecallers in marketing department and some accountants in finance department.
At the end the owners of the company recognized a need of HR department with growing
business and growing business activities. Hence the HR department is setup.
Organizational Structure:
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MANAGING DIRECTOR
Co-Ordination Manager
Operations Manager
Sales Manager HR and Admin Manager
Export
Export
Business Development
Manager
Back office Cargo
Export Operation Executive
Chapter: 4
33
Import Import
Sales Executive
Sales Supervisor
Tele Caller
Customer Support
Courier
Data Analysis and Data
Interpretation
Analysis of Data:
(Analysis of randomly selected employees)
Analysis of data is the process of presenting the data in the form of charts and diagrams.
The collected information can be demonstrated with the help of such diagrams and charts.
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The analysis of the data collected through the Questionnaire method can be stated as
follows.
1. Age of the employees:
Option Between 18-25 Between 25-35 Above 35 Total
Response 17 6 2 25
% 68% 24% 8% 100%
Most of the employees are between age group of 18-25. This means either the policy of the company is to hire this partcular age group or the attrition rate is high.
2. Is there a feeling of mutual trust in your organization?
a) YES
b) NO
35
Option YES NO Total
Response 11 14 25
% 44% 66% 100%
Majority of employees feel that there is a lack of mutual trust in the organisation. There are some people in the organisation who feel that there is an environment of mutual trust, but this is because these people are working with theorganisation so far.
3. Does management take sincere efforts to identify and utilize employees’ full potential?
a) Fully
b) Partially
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c) Not at all
Option Fully Partially Not at all Total
Response 1 14 10 25
% 4% 56% 40% 100%
Majority of people partially agree that there potential is sincerely identified and utilized properly.
4. Does recruitment and selection process scientific?
a) YES
b) NO
37
Option YES NO Total
Response 6 19 25
% 24% 76% 100%
Majority of employees are not scientifically selected, rather according to them scientific selection process is not adopted.
5. How is the sense of job security among the employees?
a) Secured
b) Insecured
38
Option Secured Insecured Total
Response 4 21 25
% 16% 84% 100%
Majority of employees are feeling insecured about their job.
6. Do you have grievence cell?
a) YES
b) NO
39
Option YES NO Total
Response 0 25 25
% 0% 100% 100%
All the employees agreed that there is no grievence cell in the organization. Most of the employees are insecured about their job is because their personal or organizational problems are not solved by the management.
7. What are motivational techniques used so far?
a) Monetary
b) Non-monetary40
c) Combination
d) No Motivation
Option Monetary Non-monetary
Combination No Motivation
Total
Response 3 11 8 3 25
% 12% 44% 32% 12% 100%
Most of the times non-monetary kind of motivational tachniques are used in the organization.
8. Do you feel that your job suits your educational qualification?
a) YES
b) NO
41
Option YES NO Total
Response 10 15 25
% 40% 60% 100%
Majority of the employees feel that whatever jobs are assigned to them are not identical to their qualification or interests.
9. Are you paid satisfactorily?
a) Underpaid
b) Satisfied42
c) Overpaid
Option Underpaid Satisfied Overpaid Total
Response 16 9 0 25
% 64% 36% 0% 100%
Majority of employees think that the wage structure in the organization is not revised since many days, neither the attractive incentive scheme is available for the employees.
10.How is an internal communication?
a) Excellent
b) Good
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c) Bad
d) Worst
Option Excellent Good Bad Worst Total
Response 2 6 16 1 25
% 8% 24% 64% 4% 100%
Majority of employees agree that the communication between management and employees is not satisfoctory.
11.Do you feel that there should be some welfare activities to be performed?
a) YES
44
b) NO
Option YES NO Total
Response 25 0 25
% 100% 0% 100%
All the employees are asking for some welfare activities so that they will feel recognized and secured.
12.What is your level of satisfaction as far as your work environment is concerned?
c) Highly satisfied
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d) Satisfied
e) Dissatisfied
f) Highly Dissatisfied
Option Highly Satisfied
Satisfied Dissatisfied Highly Dissatisfied
Total
Response 0 6 18 1 25
% 0% 24% 72% 4% 100%
Majority of employees are dissatisfied as far as work environment is concerned.
13.I feel recognised.
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a) Strongly agree
b) Agree
c) Disagree
d) Strongly disagree
Option Strongly Agree
Agree Disagree Strongly disagree
Total
Response 1 3 18 3 25
% 4% 12% 72% 12% 100%
One employee is feeling that he is recognised, almost 72% employees feel that they are not recognised and 12% employees strongly feel that they are not recognised.
14.Do you feel the need of HR Department?
a) YES
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b) NO
Option YES NO Total
Response 24 1 25
% 96% 4% 100%
Almost 96% employees feel that there should be an HR department, one employee feels that there should not be an HR department.
Chapter: 548
Conclusion
And
Suggestion
Observation:
1) The culture in the organization is very rich.
2) The work environment is a mixture of both formal as well as informal.
3) The work place is well equipped with computers, printers, telephones, and other
necessary things required.
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4) The nature of the employees here is very cooperative, supportive, very motivating and
encouraging
5) Though the company premise is small, still it is kept very clean and tidy.
6) The leadership style adopted by the management is mixed, i.e., according to need they
adopt autocratic as well as cooperative.
7) The company’s canteen is not spacious.
Suggestions:
1) Although the machines are important but the man behind the machine is more important.
The recruitment and selection procedure adopted by the company is not scientific. The
company should look forward for scientific recruitment and selection procedure, so that
the current attrition rate could be reduced (Which is huge currently).
2) After observing the working style of the company it is observed that the company has
recruited unnecessary manpower. The wage system is not proper. The company should
reduce manpower and should concentrate on small groups. So that they can improve
current wage structure and ultimately the attrition rate would be reduced.
3) The internal communication system is weak. The company should try to improve this
scenario.
4) After setting up HR department, the management should convey a positive message in
the employees that this department is for them only.
Conclusions:
After the survey conducted on whether HR Department should be there or not? At
UNIQUE AIR EXPRESS, Pune, it was found that there should be an HR department. The
importance of HR Department is growing everyday even in small industry also. In above
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surveyed data it crystal clear that even employees are not happy with current system. For
improving Industrial relation there should be a mediator. That mediator is known as HR
Manager.
The management should try and help their employees to understand various functions of
HR department. It is understood by the feedback from employees that they are unaware of
various aspects of HR department.
Thus, after HR department setup the organization will be able to achieve their goals, aims
and employee satisfaction in an effective way.
Questionnaire
1. Age of the employees:
a) Between 18-25
b) Between 25-35
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c) Above 35
2. Is there a feeling of mutual trust in your organization?
c) YES
d) NO
3. Does management take sincere efforts to identify and utilize employees’
full potential?
d) Fully
e) Partially
f) Not at all
4. Does recruitment and selection process scientific?
c) YES
d) NO
5. How is the sense of job security among the employees?
c) Secured
d) Insecured
6. Do you have grievence cell?
c) YES
d) NO
7. What are motivational techniques used so far?
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e) Monetary
f) Non-monetary
g) Combination
h) No Motivation
8. Do you feel that your job suits your educational qualification?
c) YES
d) NO
9. Are you paid satisfactorily?
d) Underpaid
e) Satisfied
f) Overpaid
10.How is an internal communication?
e) Excellent
f) Good
g) Bad
h) Worst
11.Do you feel that there should be some welfare activities to be
performed?
g) YES
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h) NO
12.What is your level of satisfaction as far as your work environment is
concerned?
i) Highly satisfied
j) Satisfied
k) Dissatisfied
l) Highly Dissatisfied
13.I feel recognised.
e) Strongly agree
f) Agree
g) Disagree
h) Strongly disagree
14.Do you feel the need of HR Department?
c) YES
d) NO
BIBLIOGRAGHY
K Ashwathappa, HRM: Function and objectives, Human Resource Management,
India Tata Mcgraw Hill; 8-10
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K Aswhathappa: HRM Models, 17-20
Gary Dessler; The changing role of Human Resource Management; 12-15
Websites:
www.citehr.com
www.HRtools.com
www.globalhr.com
www.wikipedia.com
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