hr empirical study

7/28/2019 HR Empirical Study

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M.S.Ramaih Management Institute

ESWARA S ADITYA, 114108 Page 1

CHAPTER-1

INTRODUCTION


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PROBLEM STATEMENT

FMCG is the fourth largest sector in India, it is employing more people and to retain skillful and

talented people becomes difficult, because other Job Opportunities are Available by competitors

companies. So by keeping this problem in Mind the Analysis is done to know what Innovative

Human Resource Practices are adopted by this two well-known company NESTLE and HUL

which give them competitive Edge and become Market Leader.


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LITERATURE REVIEW

In an era of heightened competition, effective human resource management (HRM) can no

longer be content with simply executing a standard set of practices. There is a need constantly to

develop and implement new and improved HR practices so as to remain competitive. Available

literature suggests that business environment changes have brought about profound changes in

the management of human resources (Stroh Caliguiri, 1998). Tannenbaum and Dupuree-Bruno

(1994) also found a very strong relationship between the external environment and HR

innovations. A favorable external environment reduced innovation. A prevailing universal

assumption also maintains that there are always some human resource activities that are better

than others and, therefore, organizations should adopt new and innovative human resourceactivities (Ulrich, 1997; Harel and Tzafrir, 1999).

However, very little research had addressed innovation within the HRM function (Wolfe, 1995).

In both the theoretical literature and the emerging conventional wisdom, there is a growing

consensus that organizational HR practices must ultimately contribute to the firm's financial

performance. Though research focusing on the firm-level impact of HR practices has become

popular in recent years (Delaney and Huselid, 1996), several problems with this type of research

have been pointed out (Hiltrop, 1996).

Theoretical evidence on the relationship of HR practices with organizational effectiveness

indicates that HR practices influence employee commitment and other HR performance

measures, which then lead to organizational effectiveness (Rao.1990).

Theoretical framework:

The term innovation has been used to refer to two related concepts. Some researchers have used

the term to refer to the process of bringing new products, equipments, programs or systems into

use (Damanpour, 1991) while others have used it to refer to the object of the innovation process,

that is, the new product, equipment, programme or system (Rogers,1983). The latter use of the

term is adopted in the present research, following Wolfe (1995) who defined innovative HR

practices as ideas, prograrmnes, practices or systems related to the HR function and new to the


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adopting organization. Use of the term innovation has also differed in respect of whether

'objective newness' is considered an important criterion of innovation. While some researchers

consider objective newness to be an important criterion, others consider an innovation to be a

product, program or system which is new to the adopting organization (e.g. Damanpour, 1991),

arguing that whether an idea is objectively new matters little so far as human behavior is

concerned (Rogers, 1983). The present research adopts the latter position. The adoption of

innovative/progressive HR practices can be considered similar to the adoption of other

administrative innovations; Evan (1966) and Knight (1967) were the first to differentiate

between technical innovations and administrative innovations. Technical innovations refer to

ideas for a new product or service or changes in production processes. Administrative

innovations are the organizational or people innovations.

Progressive/ innovative HR practices are considered similar to administrative innovations, as

they occur within the social system of the organization and are designed to improve

organizational effectiveness by influencing employee attitudes and behavior (Johns, ! 993).

Innovative human resource practices in context According to Kochanski and Ruse (1996), the

HR function has been under pressure to reduce costs, to improve its services, to increase its

impact and to provide a more satisfying work experience for its own employees, even as the

proven ways of organizing the people prove insufficient to meet the new challenges facing

human resources.

McMahan (1996), in his study of 130 large companies, found that, as corporations adopted new

strategies and redesigned themselves to deal with the competitive pressures they were feeling,

their HR functions were also redesigning themselves to support the changing business. Kossek

(1987) offered six propositions that identify factors associated with the adoption of innovative

HRM practices:

1 external environmental force distinguishes HRM innovations across industries;

2 structural organizational characteristics may be related to HRM innovations;

3 HRM innovations that are easily packaged and marketed by consultants may be the most

widely diffused;


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4 organizations often adopt HRM innovations in order to appear more legitimate;

5 strong culture firms may adopt HRM innovations for different reasons than weak culture firms.

6 finally, a company's history of success with past HRM innovations affects the

Prospects for acceptance of new ones.Kossek concluded that companies adopted new work

practices for a variety of, often Contradictory, reasons, In another study, Kossek (1990) proposed

that, by implicitly Focusing on quantity rather than quality of innovation, executives may be

searching for HR 'fixes' when they should be trying to understand what influences employee

acceptance of innovations and what makes for a successful HR program. Open meetings that

allow for significant local input regarding design and implementation will lead to innovations

that are both better designed and more fully accepted. Systematic evaluation of the general

influence of HR programs is also critically important.

Employers can improve the success rate of their innovative HR programs by:

1. Providing clear, top-level support for HR innovations;

2. Ensuring that the HR department is not isolated from other departments; and

3. Making the entire company responsible for fair hiring practices and other HR programs and

functions.


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INNOVATIVE HUMAN RESOURCE PRACTICES

India now becomes a player in the global stage. Everyone wants to do business with us, this

change has given lot of opportunities to our country to grow further but it posed lot of challenges

in front of us like Indian companies gained confidence to acquire foreign giant companies and

try to establish themselves very competitive than the foreign companies at the same time we

have to give emphasis on the various challenges before us like the gap between people in the

corporate world and those in the rural areas is becoming serious concern and the wage

differentials between blue collared workers and senior managers, the candidates having good

education and communication skills getting more chance in the job market than other people

lesser than them, attrition levels are all time high in India for example business processoutsourcing facing problems with talent retention.

This project try to extract the facts to find out how the companies in India facing HR problems

and what kind of innovative practices they are following to recruit and retain their employees

and made them feel best place to work and enjoying working and made the companies in the

great height in their own field of business.

FOUR CRITICAL DIMENSIONS OF BEST PRACTICES

Attract and Access:

Attracting and retaining talent is becoming a big problem for every organization, they are

following every trick and strategy to recruit and retain the employees.

Develop and Grow:

Nowadays organizations try to recognize the aspirations of employees and focus on their growth

and development. India provides job rotation opportunities to highperforming employees from

operations division. This gives them broader understanding of the business.


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Engage and Align:Employee engagement has retained the focus of organizational leadership and many companies

keep launching new practices to woo employees. They are using innovative practices like

Loyalty Interview- to find out what is it that makes its employees stay on, the feedback fromloyal employees often reflects on the leadership style and is seen to work as a great motivation.

Transition:

Movement of talent within the organization and outside of the organization sends strong signals

to the employees about the organizations care and concern. Right from the induction, which is

often the first impression the employees carries, to the exit interview, the sensitivity displayed by

the organization has a lasting impact on all employees.

INNOVATIVE PRACTICES IN HR AREAS:

I. Recruitment and selectionII. Learning and development

III. Rewards and recognitionIV.

Career planning

V. Compensation and benefitsVI. Performance management

VII. Leadership and developmentVIII. Organization structure


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I. RECRUITMENT AND SELECTION

1. Internet Portfolio

(i) Diversity among employees: Exarmy man to former school teacher in the workforce.

(ii) For recruitment they expect the person has to be comfortable with technology and be

optimistic about the future. Like someone who you would find interesting on a long train

journey. The companys recruitment process ensures that it gets the people edge it needs. There

is a battery of wiring tests, interviews are rigorous, not in the sense of being a stress interview,

but interviewers try and go deep into what makes the candidate tick. Then the detailed feedback

on the candidate is given to an independent team in charge of hiring. The companys credo is to

hire someone who is better than you.

2. Employee referrals by employees which comprises 50% of all hiring at SAP Labs India,

Bangalore.

3. Nonstandard pool of talent: housewives with a gap in career

4. Bar Raisers:

The HR department has organized an elite group of 34 employees who have veto power in an

recruitment decision, if a Bar member feels a potential recruit does not match upto the

companys standards.

5. Short stories:

The Company compiled 52 short stories, one for each week, the company used to introduce new

recruits. The stories talk about its history and evolution, technology and people who made a

difference.

6. The company goes beyond its employees and connects with their support group: the family,

when an employee joins, his parents or spouse get a welcome letter.


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II. LEARNING AND DEVELOPMENT

SMEs (Subject Matter Experts):

HR team identifies the internal subject matter experts to give training to the employees Sending

employees for higher studies

Welcome:

When employees join the company, they have to interact with functionaries in other regions who

assume that the new person in knows the internal systems. Often the new employee is unfamiliar

with the systems and is at sea. The Welcome gateway lists certain universal systems of the

company and helps them get familiar with such things. A stand out feature is that if this

checklist remains incomplete it sends an automatic notice to the manager responsible for theemployee.

Company follows a training policy to have seven days of training every year is mandatory for all

employees, even this chairman and the directors.

GOLD (Godrej Organization for Learning and Development):

Web-based learning tied up with UKbased Net to distribute e- learning modules among the

workforce. The company gives equal importance to soft skill training.Out of box thinking is

more important , the sponsored the Edward De Bono certification of lateral thinking for two of

its managerial employees, so they could teach in house. This learning creates a leadership

pipeline.


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III. REWARDS AND RECOGNITION

1. MAD (Mutual Admiration):

Is an event where every employee is given green cardboard leaves on which they scribble

messages of appreciation and pin them onto the MAD tree in the cafeteria. The leaves are a way

of reaching out to colleagues and teams who have mattered. And at the end of the week, the

foliage gets thick. Surely, the employees like being around each other.

2. Smart Work and Smart Reward:

It directed towards improving employees productivity. It rewards those who complete tasks in

fewer working hours than stipulated. The reward process is well defined and transparent. It has

helped in ensuring better worklife balance.

3. Promotion within.

IV. CAREER PLANNING

1. Career Success Centre:

An online portal and a one stop shop for all career related resources. The portal helps

employees plan and develop their careers according to business needs.

V. COMPENSATION AND BENEFITS

1. Paternity leave

2. Extra three months maternity leave at half the salary leave

3. No attendance monitoring

4. Unlimited sick leave

5. Equal privileges for employees across levels: employees at all levels travel in the same class,

stay in similar hotels, work out of standard cubicles, log in their own leave.


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VI. PERFORMANCE MANAGEMENT

1. 360 degree feedback system

2. Performance Task Force: A cross functional team constitutes 20 members and this force

keeps track of what needs to be plugged, and what seems to be working. It goes back to HR

every six months to deliver feedback.

VII. LEADERSHIP AND DEVELOPMENT

1. Food for thought:

Inviting employees in groups to chat with Managing director over lunch in an informal

environment on various issues and topics

2. Succession planning

3. Employee empowerment

4. Reach out:

An initiative to keep a direct link of communication to its employees, the president of the

company meets the employees.

VIII .ORGANIZATION STRUCTURE

1. Flexi and Parttime

2. The companies allow the employees to shift jobs if they wish to, across its different functions.

3. Skits: The companies are asking the employees to devise skits to dramatize its values, design

screen savers and even create mascots themed on the values, they would much rather hunker

down and design some more.

4. The company created new position called Employee Engagement Manager: the major task

of the manager is to energize the workplace with fun filled events and effective

communication.


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5. People Champions: Every project team has one facilitator from the HR department. The

people champion takes care of any administrative need a project might have, leaving the project

members free to concentrate on their work.

6. Orientation along with parents: The Company invites the parents of new recruits fororientation, its good for the parents to know the kind of organization their children work for, this

insight came from campus recruitment, where parents would stay with their children right till

results were parents would stay with their children right till results were announced.

7. People Movement Management Review Committee: it ensures talented employees were

retained by reassigning them to other groups. The company also hired consultants to assist those

who were asked to leave to find jobs in other organizations.


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CHAPTER-2

INDUSTRY & COMPANIES PROFILE

2.1- Industry Introduction

2.2- Company Introduction


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2.1 INDUSTRY PROFILE

FAST MOVING CONSUMER GOODS

Introduction:

Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than

groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily,

and so have a quick rate of consumption, and a high return. These fast moving consumer goods

are the essential items we purchase when we go shopping and use in our everyday lives. They're

the household items you pick up when you're buying groceries or visit your local chemist or

pharmacy. FMCG goods are referred to as 'fast moving', quite simply, because they're the

quickest items to leave the supermarket shelves. They also tend to be the high volume, low cost

items.


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Cleaning and laundry products, over the counter medicines, personal care items and food stuffs

make up a large bulk of the goods in the FMCG arena, but it doesn't end there. Paper products,

pharmaceuticals, consumer electronics, plastic goods, printing and stationery, alcoholic drinks,

tobacco and cigarettes can all be considered fast moving consumer goods too.

The top FMCG companies are characterized by their ability to produce the items that are in

highest demand by consumers and, at the same time, develop loyalty and trust towards their

brands.

India FMCG sectors significant characteristics can be listed as strong MNC presence, well

established distribution network, intense competition between the organized and unorganized

players and low operational cost. Easy availability of important raw materials, cheaper labor

costs and presence across the entire value chain gives India a competitive advantage.Indias

FMCG market is highly fragmented and a considerable part of the market comprises of

unorganized players selling unbranded and unpackaged products. There are approximately 12-13

million retail stores in India, out of which 9 million are FMCG kirana stores.


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Penetration level and per capita consumption in many product categories is very low compared

to world average standards representing the unexploited market potential. Mushrooming Indian

population, particularly the middle class and the rural segments, presents the huge untapped

opportunity to FMCG players. Growth is also likely to come from consumer 'upgrading' in the

matured product categories like processed and packaged food, mouth wash etc. A distinct feature

of the FMCG industry is the presence of international players through their subsidiaries (HLL,

P&G, Nestle), which ensures innovative product launches in the market from their parent's

portfolio.


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MAJOR SEGMENTS OF THE FMCG INDUSTRY:

Household Care:

The detergents segment is growing at an annual growth rate of 10 to 11 per cent during the past

five years. The local and unorganized players account for a major share of the total volume of the

detergent market. The preference is given to detergents in urban area compared to bars.

Household care segment is featured by intense competition and high level of penetration. With

rapid urbanization, emergence of small pack size and sachets, the demand for the household care

products is booming. In washing powder segment, HUL is the leader with ~38 per cent of market

share. Other major players are Nirma, Henkel and Proctor & Gamble.


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Personal Care

Personal care segment includes personal wash products, hair care products, oral care products,

cosmetics etc. The Indian skin care and cosmetics market is valued at $274 million and is

dominated by HUL, Colgate Palmolive, Gillette India and Godrej. The coconut oil marketaccounts for 72 per cent share in the hair oil market. The hair care market can be segmented into

hair oils, shampoos, hair colorants & conditioners, and hair gels. In the branded coconut hair oil

market, Marico (with Parachute) and Dabur are the leading players. Sachet makes up to 40per

cent of the total shampoo sale. Again the market is dominated by HUL with around 47 per cent

market share; P&G occupies second position with market share of around 23 per cent. Personal

wash can be further segregated into three segments namely Premium, Economy and Popular.

Here also, HUL is the leader with market share of 53 per cent; Godrej occupies second position

with market share of 10 per cent. Swelling disposable incomes of the Indian consumers, growth

in rural demand and upgrading to the premium products are the key drivers for future demand

growth in major FMCG categories.


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The skin care market is at a primary stage in India. With the change in life styles, increase in

disposable incomes, greater product choice and availability, people are becoming more alert

about personal grooming. The major players in this segment are Hindustan Unilever with a

market share of 54 per cent, followed by CavinKare with a market share of 12 per cent and

Godrej with a market share of 3 per cent. The oral care market can be segmented into toothpaste

- 60 per cent; toothpowder - 23 per cent; toothbrushes - 17 per cent. This segment is dominated

by Colgate-Palmolive with market share of 49 per cent, while HUL occupies second position

with market share of 30 per cent. In toothpowders market, Colgate and Dabur are the major

players.

Food and Beverages

This segment comprises of the food processing industry, health beverage industry, bread and

biscuits, chocolates & confectionery, Mineral Water and ice creams. The three largest consumed

categories of packaged foods are packed tea, biscuits and soft drinks. Indian hot beverage market

is a tea dominant market. The major share of tea market is dominated by unorganized players.

Leading branded tea players are HUL and Tata Tea. Major players in food segment are HUL,

ITC, Godrej, Nestle and Amul.


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Global leaders in the FMCG segment are Nestl, ITC, Hindustan Unilever Limited, Reckitt

Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi,

Gillette etc.

Overview

The burgeoning middle class Indian population, as well as the rural sector, presents a huge

potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a

total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a

USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025.

This sector is characterized by strong MNC presence and a well-established distribution network.

In India the easy availability of raw materials as well as cheap labor makes it an ideal destination

for this sector. There is also intense competition between the organized and unorganized

segments and the fight to keep operational costs low.

(Source: Secondary Data)


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THE TOP 10 COMPANIES IN FMCG SECTOR

1 HINDUSTAN UNILIVER LIMITED

2 ITC

3 NESTLE INDIA

4 AMUL

5 DABUR

6 COLGATE-PALMOLIVE

7 CADBURY INDIA

8 BRITANNIA INDUSTRIES

9 PROCTER & GAMBLE HYGINE AND

HEALTH CARE

10 MARICO INDUSTRIES

(Source: secondary data)

Factors that will drive growth in this sector:

Increasing rate of urbanization, expected to see major growth in coming years.

Rise in disposable incomes, resulting in premium brands having faster growth and deeper

penetration.

Innovative and stronger channels of distribution to the rural segment, leading to deeper

penetration into this segment.

Increase in rural non-agricultural income and benefits from government welfare programs.


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Investment in stock markets of FMCG companies, which are expected to grow constantly.

Challenges this sector is likely to face are:

Increasing rate of inflation, which is likely to lead to higher cost of raw materials.

The standardization of packaging norms that is likely to be implemented by the Government by

Jan 2013 is expected to increase cost of beverages, cereals, edible oil, detergent, flour, salt,

aerated drinks and mineral water.

Steadily rising fuel costs, leading to increased distribution costs.

The present slow-down in the economy may lower demand of FMCG products, particularly in

the premium sector, leading to reduced volumes.

The declining value of rupee against other currencies may reduce margins of many companies,

as Marico, Godrej Consumer Products, Colgate, Dabur, etc who import raw materials.

INDIAN CONSUMERS SPENDING PATTERN

1%2%

2%

10%

4%

5%

4%

2%

8%

40%

8%

7%

7%

Column1

Accessories

Entertainment

Footware

Eating out

vacation

Music & theater

saving & Investment

Home textile

Personal care

Grocery

Books

clothing

consumer durables


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Key growth drivers to the Industry are as follows:

Robust growth in Indias GDP

Growing urbanization

Evolving consumer life style

Increased income in rural areas

Spending Pattern

Changing Profile and Mind Set of Consumer

Growth of modern retail

The FMCG sector has a great opportunity for growth in the country, with the growing

population, the rising disposable incomes, education, urbanization, the advent of modern retail,

and a consumption-driven society. There is a potential for all the FMCG companies as the per

capita consumption of almost all products in the country is very low compared to world

standards, thee exists there huge untapped opportunities. Research Team


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2.2 COMPANY PROFILE

HINDUSTAN UNILIVER LIMITED (HUL)

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Companywith a heritage of over 75 years in India and touches the lives of two out of three Indians.

HUL works to create a better future every day and helps people feel good, look good and get

more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin

care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water

purifiers, the Company is a part of the everyday life of millions of consumers across India. Its

portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair

& Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,

Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.


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The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736

crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the worlds leading

suppliers of fast moving consumer goods with strong local roots in more than 100 countries

across the globe with annual sales of about 46.5 billion in 2011. Unileve r has about 52%

shareholding in HUL.

VISION

Unilever products touch the lives of over 2 billion people every day whether that's through

feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and

clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for the company where we want to

go and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more out of life with brands and services that are

good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for the

world.

We will develop new ways of doing business with the aim of doubling the size of our company

while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of peoples lives and in

doing the right thing. As our business grows, so do our responsibilities. We recognize that global

challenges such as climate change concern us all. Considering the wider impact of our actions isembedded in our values and is a fundamental part of who we are.


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ACHIVEMENTS:

Golden Peacock Global Award for Corporate Social Responsibility for the year 2011 Golden Peacock Environment Management Award for 2011 in the FMCG category.

HISTORY

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars,

embossed with the words "Made in England by Lever Brothers". With it, began an era of

marketing branded Fast Moving Consumer Goods (FMCG).

Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and

VimVanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing

Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).

These three companies merged to form HUL in November 1956; HUL offered 10% of its equity

to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds

52.10% equity in the company. The rest of the shareholding is distributed among about 360,675

individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had

launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed.

Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile

Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972, and in 1977

Lipton Tea (India) Limited was incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through

an international acquisition of Chesebrough Pond's USA in 1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic growth.

The growth process has been accompanied by judicious diversification, always in line with

Indian opinions and aspirations.


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The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in HUL's

and the Group's growth curve. Removal of the regulatory framework allowed the company to

explore every single product and opportunity segment, without any constraints on production

capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most

visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills

Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet

another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited,

to market Lakme's market-leading cosmetics and other appropriate products of both the

companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50%stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,

Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has

also set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the

largest manufacturing investment in the Himalayan kingdom. The UNL factory manufactures

HUL's products like Soaps, Detergents and Personal Products both for the domestic market and

exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and

Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with

significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB

Group and the Dollops Ice-cream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies

of Unilever, were merged with Brooke Bond. Then in 1994, Brooke Bond India and Lipton Indiamerged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and

ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the

Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic

alliance with the Kwality Icecream Group families and in 1995 the Milk food 100% Ice-cream

marketing and distribution rights too were acquired.


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Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring

culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies

had significant overlaps in Personal Products, Specialty Chemicals and Exports businesses,

besides a common distribution system since 1993 for Personal Products. The two also had a

common management pool and a technology base. The amalgamation was done to ensure for the

Group, benefits from scale economies both in domestic and export markets and enable it to fund

investments required for aggressively building new categories.

In January 2000, in a historic step, the government decided to award 74 per cent equity in

Modern Foods to HUL, thereby beginning the divestment of government equity in public sector

undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of

the company's wheat business. In 2002, HUL acquired the government's remaining stake in

Modern Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam

Group of Companies, a leader in value added Marine Products exports.

HUL launched a slew of new business initiatives in the early part of 2000s. Project Shakti was

started in 2001. It is a rural initiative that targets small villages populated by less than 5000

individuals. It is a unique win-win initiative that catalysis rural affluence even as it benefits

business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages

across 15 states and reaching to over 3 million homes.

In 2002, HUL made its foray into Ayurvedic health & beauty center category with the Ayush

product range and Ayush Therapy Centers. Hindustan Unilever Network, Direct to home

business was launched in 2003 and this was followed by the launch of Pureit water purifier in

2004.

In 2007, the Company name was formally changed to Hindustan Unilever Limited afterreceiving the approval of shareholders during the 74th AGM on 18 May 2007. Brooke Bond and

Surf Excel breached the Rs 1,000 crore sales mark the same year followed by Wheel which

crossed the Rs.2,000 crore sales milestone in 2008.


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On 17th October 2008, HUL completed 75 years of corporate existence in India.

In January 2010, the HUL head office shifted from the landmark Lever House, at Backbay

Reclamation, Mumbai to the new campus in Andheri (E), Mumbai.

On 15th November, 2010, the Unilever Sustainable Living Plan was officially launched in India

at New Delhi.

In March, 2012 HULs state of the art Learning Centre was inaugurated at t he Hindustan

Unilever campus at Andheri, Mumbai.

In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the

Hindustan Unilever campus at Andheri, Mumbai

Purpose & principles

Our corporate purpose states that to succeed requires "the highest standards of corporate

behavior towards everyone we work with, the communities we touch, and the environment on

which we have an impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many people, organizations and

environments our business touches has always been at the heart of our corporate responsibility.

Positive impact

We aim to make a positive impact in many ways: through our brands, our commercial operations

and relationships, through voluntary contributions, and through the various other ways in which

we engage with society.

Continuous commitment

We're also committed to continuously improving the way we manage our environmental impacts

and are working towards our longer-term goal of developing a sustainable business.


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Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It's underpinned by our

code of business Principles which describes the operational standards that everyone at Unilever

follows, wherever they are in the world. The code also supports our approach to governance andcorporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the same

standards we do. Our Business partner code, aligned to our own Code of business principles,

comprises ten principles covering business integrity and responsibilities relating to employees,

consumers and the environment.

HUL IN NEWS FOR GOOD HR PRACTICES

It is not without reason that the largest fast moving consumer goods company in India, Hindustan

Unilever (HUL), has been given the 'Dream Employer' status for the third time in a row by

market research agency Nielsen. HUL has given India Inc some of its best managers, who have

gone on to hold international positions too.

But the Anglo-Dutch giant, which has been in India for more than 100 years, is now beginning to

devote its attention to its blue-collared workforce - something companies in general in India have

not taken too seriously.

According to HR experts, while most Indian companies are quick to devise HR programmes for

their white-collared staff, HR initiatives for the workers on the factory floor are few and far

between.

Companies such as HUL are beginning to take the lead here devising programmes specifically

targeted at their blue-collared workforce.

For HUL it also becomes imperative given the sheer size of its workforce. The company has

almost 10,000 workers on its rolls, spread across 35 factories in the country. This is seven times


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the number of its managers and four times the number of its executives and supervisors - all

white collared employees. Galvanizing this workforce then, according to the company's

executive director, human resources, Leela Nair, is imperative.

This HUL is doing using various tools from skill enhancement to educational scholarships forthose keen on completing their studies as well as business engagement programs and field trips

abroad.

The endeavor, explains Nair, who has been with HUL for the last 18 years, is to be involved with

the overall development of workmen - something they appreciate greatly.

"For instance," she says, "almost 10-20 per cent of our blue-collared workforce visit different

factories both in India and abroad every year. This gives them a chance to understand the best

practices deployed at other units and how workers there operate."

HUL has also devised a performance appraisal mechanism called Sparkle for its blue-collared

workers to help them grow in the company, Nair says. "Till now, around 37 people have been

promoted to the supervisor's level and 80 more people are in the pipeline," she says.

Whilst attrition at the white-collared level is close to 5 per cent, HUL has been able to cap its

attrition level among its blue-collared workforce to about 2-3 per cent. According to it s 2010-11

Annual Report, wastage due to loss of man hours was next to zero.

Nair says that attrition at both blue- and white-collared levels at HUL is lower than the industry

average. "Attrition in the FMCG industry is closer to 18 per cent. We are in single digits," she

says.

As far as the menace of poaching goes, HUL, says Nair, has been dealing with its simply by

increasing its investment per employee. "We don't profess to be the best pay masters. But what

we ensure is a work-life balance which you will not find in very many companies," she says


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SOCIAL WORK

Unilevers response to these global challenges With products on sale in over 190 countries,

Unilever is confronted daily by the reality of poor hygiene, poor nutrition, water scarcity and the

impact of a changing climate on the farmers who supply us. For 20 years we have been takingaction to meet these challenges.

1995 Started a Sustainable Agriculture Programme for our suppliers and an eco-efficiency programme for our factories.

1996 Co-founded the Marine Stewardship Council with WWF 2000 Began work, with Greenpeace, to remove HFC refrigerants from our ice cream

freezers

2002 Lifebuoy soaps campaign to raise awareness of the importance of handwashingwas launched

2003 Co-founded the Roundtable on Sustainable Palm Oil Established our NutritionEnhancement Programme

2007 Committed to source tea sustainably 2008 Committed to source all palm oil from certified sustainable sources by 2015 2010 Leading advocate of the Consumer Goods Forums commitment to eliminate

deforestation from our supply chain.

IMPROVINGHEALTH AND WELL-BEING

HEALTH AND HYGIENE

They have reached 100 million people with our hand washing, oral care and self-esteemprograms, and a further 35 million with safe drinking water.

reduce diarrhoeal and respiratory disease through hand washing.

improve oral health


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improve self-esteem

Provide safe drinking water

NUTRITION

They increased the proportion of our portfolio that meets the highest nutritional standards from

22% in 2010 to 25% in 2011.

Reduce salt levels

saturated fat:

Reduce saturated fat

Increase essential fatty acids

Remove Trans fat

Reduce sugar

Reduce calories

Provide healthy eating information.


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SWOT ANALYSIS

Strengths

Well-established distribution network

extending to rural areas.

Strong brands in the FMCG sector.

Low cost operations

Weaknesses:

Low export levels.

Small scale sector reservations limit ability to

invest in technology and achieve

economies of scale.

Several "me-too products.

Opportunities

Large domestic market.

Export potential

Increasing income levels will result in faster

revenue growth.

Threats

Imports

Tax and regulatory structure

Slowdown in rural demand


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NESTLE

Nestl is the world's leading Nutrition, Health and Wellness Company. Our mission of "Good

Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide

range of food and beverage categories and eating occasions, from morning to night.

The Company was founded in 1866 by Henri Nestl in Vevey, Switzerland, where our

headquarters are still located today. We employ around 2,80,000 people and have factories or

operations in almost every country in the world. Nestl sales for 2009 were CHF 108 bn.

The Nestl Corporate Business Principles are at the basis of our Companys culture, developed

over 140 years, which reflects the ideas of fairness, honesty and long-term thinking.

Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a largenumber of co-packers, Nestl India is a vibrant Company that provides consumers in India with

products of global standards and is committed to long-term sustainable growth and shareholder

satisfaction.

The Company insists on honesty, integrity and fairness in all aspects of its business and expects

the same in its relationships. This has earned it the trust and respect of every strata of society that

it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and

amongst the 'Top Wealth Creators of India'.


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Creating Shared Value

For a business to be successful in the long term, it must create value not only for its shareholders

but also for society.

Nestl processing units in India

After nearly a century-old association with the country, today, Nestl India has presence across

India with 7 manufacturing facilities and 4 branch offices spread across the region.

Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed soon after

by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently, Nestl India set up

factories in Nanjangud (Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was

succeeded by the commissioning of two more factories - at Ponda and Bicholim, Goa, in 1995

and 1997 respectively. The seventh factory was set up at Pantnagar, Uttarakhand, in 2006.


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The 8th Factory was set up at Tahliwal, Himachal Pradesh, in 2012.

The 4 branch offices in the country help facilitate the sales and marketing of its products. They

are in Delhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located in Gurgaon,

Haryana.


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HISTORY

Nestl's relationship with India dates back to 1912, when it began trading as The Nestl Anglo-

Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in

the Indian market.

After India's independence in 1947, the economic policies of the Indian Government emphasized

the need for local production. Nestl responded to India's aspirations by forming a company in

India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl

to develop the milk economy. Progress in Moga required the introduction of Nestl's

Agricultural Services to educate advice and help the farmer in a variety of aspects. From

increasing the milk yield of their cows through improved dairy farming methods, to irrigation,

scientific crop management practices and helping with the procurement of bank loans.

Nestl set up milk collection centers that would not only ensure prompt collection and pay fair

prices, but also instill amongst the community, a confidence in the dairy business. Progress

involved the creation of prosperity on an on-going and sustainable basis that has resulted in not

just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving

hub of industrial activity, as well. For more on Nestl Agricultural Services, click here.

Nestl has been a partner in India's growth for over nine decades now and has built a very specialrelationship of trust and commitment with the people of India. The Company's activities in India

have facilitated direct and indirect employment and provides livelihood to about one million

people including farmers, suppliers of packaging materials, services and other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of

India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness

through its product offerings. The culture of innovation and renovation within the Company and

access to the Nestl Group's proprietary technology/Brands expertise and the extensivecentralized Research and Development facilities gives it a distinct advantage in these efforts. It

helps the Company to create value that can be sustained over the long term by offering

consumers a wide variety of high quality, safe food products at affordable prices.


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Nestl India manufactures products of truly international quality under internationally famous

brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID

and NESTEA and in recent years the Company has also introduced products of daily

consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi and NESTL

JeeraRaita.

Nestl India is a responsible organization and facilitates initiatives that help to improve the

quality of life in the communities where it operates.

The ten principles of business operations

Nutrition, Health and Wellness Our core aim is to enhance the quality of consumerslives every day, everywhere by offering tastier and healthier food and beverage choices

and encouraging a healthy lifestyle. We express this via our corporate proposition Good

Food, Good Life.

Quality assurance and product safety everywhere in the world, the Nestl namerepresents a promise to the consumer that the product is safe and of high standard.

Consumer communication we are committed to responsible, reliable consumercommunication that empowers consumers to exercise their right to informed choice and

promote healthier diets. We respect consumer privacy.

Human rights in our business activities we fully support the United Nations GlobalCompacts (UNGC) guiding principles on human rights and labor and aim to provide an

example of good human rights and labor practices throughout our business activities.

Leadership and personal responsibility our success is based on our people. We treat eachother with respect and dignity and expect everyone to promote a sense of personal

responsibility. We recruit competent and motivated people who respect our values,

provide equal opportunities for their development and advancement protect their privacy

and do not tolerate any form of harassment or discrimination.

Safety and health at work We are committed to preventing accidents, injuries and illnessrelated to work, and to protect employees, contractors and others involved along the

value chain.


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Supplier and customer relations we require our suppliers, agents, subcontractors and theiremployees to demonstrate honesty, integrity and fairness, and to adhere to our non-

negotiable standards. In the same way, we are committed to our own customers.

Agriculture and rural development we contribute to improvements in agriculturalproduction, the social and economic status of farmers, rural communities and in

production systems to make them more environmentally sustainable.

Environmental sustainability we commit ourselves to environmentally sustainablebusiness practices. At all stages of the product life cycle we strive to use natural resources

efficiently, favor the use of sustainably-managed renewable resources, and target zero

waste

Water we are committed to the sustainable use of water and continuous improvement inwater management. We recognize that the world faces a growing water challenge and that

responsible management of the worlds resources by all water users is an absolute

necessity.

Social Work

Creating Shared Value says that for our business to be successful in the long run, it must

consider the needs of two primary stakeholders at the same time: the people in the countries

where we operate and our shareholders. Across our business and value chain in India wecontinue to ensure that we respond to social needs and environmental issues whilst improving

our performance at the same time.

Creating Shared Value or Saanjhapan as we call it in India is about the impact of our business

and engagement through it. The areas of greatest potential for joint value optimization with

society for us are Nutrition, Water and Rural Development. These are therefore at the core of our

business strategy and operations.


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RURAL DEVELOPMENT

Nestl has been a partner in Indias growth since 1912, establishing a special relationship

of trust and commitment with its people. When Nestl India set up its first manufacturing plant

in Moga in 1961, the local milk economy was virtually nonexistent. On the first day, wecollected only 511 kgs of milk from 180 farmers.

Since then, Nestl has set up milk collection centers that ensures prompt collection and pays fair

prices, transforming Moga into a prosperous and vibrant milk district. By supplying milk to

Nestl, farmers are benefited from the assurance that our collection centers will purchase their

entire quantity of milk, however big or small, as long as it meets Nestls stringent quality

standards. Furthermore farmers are paid monthly, guaranteeing them a regular income that would

not be possible with seasonal crops. Since there is continuous demand from Nestl for milk

throughout the year, their occupations are stable ones, assuring them of long term relationships

and fair prices.

In addition to collecting milk, Nestl has embarked on a number of other initiatives to support

the development of dairy farmers in India.


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Coffee: The NESCAF Plan

Nestl recently announced the implementation of the NESCAF Plan in India. The NESCAF

Plan is global initiatives by Nestl to bring under one leaf the companys commitment on coffee

farming, production and consumption and to help Nestl further optimize its coffee supply chain.

To roll out the NESCAF Plan in India, the first NESCAF coffee demonstration farm and

training center in the Bindhu Estate in Karnataka was inaugurated by ShriJawaidAkhtar, I.A.S

Chairman of the Coffee Board of India; Mr. NanduNandkishore, Nestl S.A.s Executive Vice

President and Zone Director for Asia, Oceania, Africa and the Middle East; and Mr. Antonio

HelioWaszyk, Chairman and Managing Director of Nestl India.

This first coffee demonstration farm in India is intended to help farmers improve the quality,

productivity and sustainability of their crops. Through the demo farm, we intend to assist coffee

farmers in the states of Karnataka, Kerala and Tamil Nadu to develop their agricultural practices

as demand for NESCAF soluble coffee grows in the country. Furthermore, Nestl's research

and development teams aim to provide farmers with high-yielding, disease resistant plantlets

suitable for Indian conditions.

By working closely with Indian coffee farmers for training and development and ensuring

competitive prices, transparency and traceability, we are seeking to source coffee sustainably.


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Sectorial woes - Rising prices of raw materials and fuels, and in turn increasing packaging and

manufacturing costs are the woes for the company. But the companies may not be able to pass

on the full burden of these onto the customers.

The food processing business in India is at a nascent stage. Currently, only about 10% of theoutput is processed and consumed in packaged form thus highlighting huge potential forexpansion and growth. Traditionally, Indians believe in consuming fresh stuff rather thanpackaged or frozen, but the trend is changing and the new fast food generation is slowlychanging.


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CHAPTER-3RESEARCH OBJECTIVE

AND

METHODLOGY


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RESEARCH OBJECTIVES

To know various HR implications in FMCG Industry

To enlist Emerging HR trends in Indian FMCG industry

To know various Innovative HR practices adopted by companies as compare to their

competitors.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the various

steps that are generally adopted by a researcher in studying his research problem along with the

logic behind them. It is necessary for the researcher to know not only the research

methods/techniques but also the methodology. Methodology doesn't describe specific methods;

nevertheless it does specify several processes that need to be followed. These processes

constitute a generic framework. They may be broken down in sub-processes, they may be

combined, or their sequence may change. However any task exercise must carry out these

processes in one form or another.

Convenience sampling procedure is used in this study to collect the data from the respondents. In

convenience sampling, as the name suggest, research studies the people who are conveniently

available to provide the information. In this study the sample members are the employees of

HUL&NESTLE at low and middle level management. This sample comprises of both male andfemale employees.


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An extensive survey is done and the primary data has been collected by questionnaire method, by

which sample questionnaires are been designed and has been circulated for further collection of

responses. Expert interviews are also been collected for further reference. All the primary data

that is been collected is substantiated and interpretations are been made from the data that is

generated.

Secondary data is been collected from the companys website and then most of the data is been

generated when the extensive literature survey is been done.

TOOL FOR ANALYSIS:

The following is the major tools that were used by the researcher for analysis and interpretation:

Percentages to consolidate

SAMPLE:

A sample is a unit of an entire population under study. It is generally difficult to study an entire

population as a whole, so we tend to consider the true representatives of such population. Thesample hence forth selected for conducting a survey for the study should be selected without any

bias.

I have made all possible attempts to fulfill these rules. The samples have been the representatives

of the population and have been considered for the study without any bias.

SAMPLE SIZE:

In this research the interaction was made with the Staff who is working in the company. On the

basis of particular questionnaire, interaction was made with 40 Staff and their responses are

taken into consideration.


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CHAPTER-4

DATA ANALYSIS

AND

INTERPRETATION


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1. How long you are working in this organization?

In NESTLE more employees are working less than a year compared to HUL. Employeesworking less than 1-5 years are similar in both the companies, but when compared to

NESTLE more experienced people are working in HUL.

44%

34%

16%

6%

HUL

Less than one year Less than 1-5 years

Less than 5-10 years Less than 10-15 years

50%

34%

16%

0%

Nestle

Less than one year Less than 1-5 years

Less than 5-10 years Less than 10-15 years


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2. Are you aware of the Human Resource policies of your organization?

In HUL most of the employees are aware of their company policies when compared toNESTLE.

76%

24%

HUL

YES NO

72%

28%

Nestle

YES NO


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3. Do you know the service conditions provided in your organization?

In NESTLE employees dont know the services provided by the company when

compared to the HUL.

70%

30%

HUL

YES NO

66%

34%

Nestle

YES NO


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4. Is the monthly report of Human Resource department communicated within theorganization?

The monthly report of human resource department in the NESTLE company was sharedwell when compared to HUL.

76%

16%

8%

HUL

YES NO SOMETIMES

80%

14%

6%

Nestle

YES NO SOMETIMES


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5. Are the personal files/records of employees maintained/ updated?

The personal files/records of the employees are maintained/updated well in NESTLE

when compared to HUL.

88%

0%12%

HUL

YES NO NOT REGULARLY

92%

8%

0%

Nestle

YES NO NOT REGULARLY


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6. Do they maintain time and attendance records in the organization?

Both the companies are perfect about their timings and employee attendance.

100%

0%

HUL

YES NO

100%

0%

Nestle

YES NO


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7. The various sources of recruitment in the organization?

The recruitment process in both companies was mostly done through Reference, Walk in

interview, Campus recruitment and consultant agents. Both of them are not usingadvertisements for the recruitment.

20%

64%

12%

0% 4%

HUL

Walk in interview Campus Recruitment References

Advertisements Consultant agents

20%

40%

24%

0% 16%

Nestle

Walk in interview Campus Recruitment References

Advertisements Consultant agents


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8. Are you satisfied with the organizations salary increment policy?

In HUL salary increment policy was good when compared to NESTLE, where moreemployees in HUL are satisfied by salary policy.

96%

4%

HUL

YES NO

84%

16%

Nestle

YES NO


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9. Are the employees getting regular training programme at regular intervals?

The training programmes in HUL are good when compare to NESTLE, where in HUL

the employees are getting regular training programmes.

90%

2%

8%

HUL

YES NO SOMETIMES

86%

8%6%

Nestle

YES NO SOMETIMES


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10.Are you satisfied with the training procedure?

In HUL the training programme was good and more employees are satisfied when

compared to NESTLE.

92%

8%

HUL

YES NO

86%

14%

Nestle

YES NO


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11.Does the HR department adopt regular appraisal?

HUL adopts good appraisal when compared to NESTLE.

96%

4%

HUL

YES NO

92%

8%

Nestle

YES NO


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12.Basis of appraisal_______

The appraisal system in NESTLE was good based on the target achievement whencompared to HUL. The key responsibilities of HUL are good for the appraisal system.

70%

6%

4%

20%

HUL

Target achievement Key responsibilities Discipline Attendance

76%

4%

4%16%

Nestle

Target achievement Key responsibilities Discipline Attendance


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13.The present appraisal system meets career advancement?

The present appraisals for the career development in both the companies are good whencompared to other and it is quite similar.

94%

6%

HUL

AGREE DISAGREE

92%

8%

Nestle

AGREE DISAGREE


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14.Are you satisfied with promotion activities?

The HUL was actively participating in promotion activities, where the employees aremore satisfied with promotional activities when compared to the NESTLE.

15.Is the working environment comfortable?

96%

4%

HUL

AGREE DISAGREE

88%

12%

Nestle

AGREE DISAGREE


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The working environments of both the companies are good and employees are satisfiedwith the environment.

16.Are you being provided welfare facilities?

96%

4%

HUL

YES NO

94%

6%

Nestle

YES NO


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Both the companies are providing the best welfare facilities for the employees such thatthe employees can provide their best services to the company.

96%

4%

HUL

AGREE DISAGREE

94%

6%

Nestle

AGREE DISAGREE


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17.Monthly health checkup is done regularly?

NESTLE and HUL are particular in taking care ofemployees health issues.

18.In case any misconduct does they take sufficient action?

100%

0%

HUL

AGREE DISAGREE

100%

0%

Nestle

AGREE DISAGREE


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Both the companies are very particular about the misconducts done by the companies,where they will take the strict action on the employees.

19.Is there a proper grievance redressal procedure followed?

86%

14%

HUL

AGREE DISAGREE

88%

12%

Nestle

AGREE DISAGREE


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Proper grievance redressal procedure was followed by the companies.

20.The overall culture of your organization?

84%

16%

HUL

AGREE DISAGREE

82%

18%

Nestle

AGREE DISAGREE


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The culture of HUL was very good when compared to NESTLE, where the culture was moreaverage in NESTLE.

2%

8%

70%

20%

HUL

Poor Average Good Very Good

2%

22%

58%

18%

Nestle

Poor Average Good Very good


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CHAPTER-5

FINDINGS AND CONCLUSION


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FINDINGS

Both the companies adopted Very Innovative HR practices to face competition in FMCGSector.

Companies main Asset is employee and their satisfaction matters a lot to the Employer byAnalyzing all HR practices of both company it can be find out easily.

Because of different and successful social welfare program, the company have got goodImage in customers Mind.

HUL take care of its women employees which make it better and preferred company bywomen to work for.

Because of good compensation benefit and employee development program Employeesof HUL Remain in the company.

The HUL Company positive Image is such that employees feel proud to belong to thecompany and they do not leave the organization.

Nestle pay little less as compare to competitors but they have great career opportunitiesfor the employees.

The training program given by the company makes employee more skillful. Specially inHUL 15 month training program which make a positive impact on freshers mind and

make them to be committed to organization. According to the research and the Analysis HUL is best is adopting Innovative HR

practices, which gives is competitive edge.


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CONCLUSION

FMCG sector will continue to see growth as it depends on an ever-increasing internal market forconsumption, and demand for these goods remains more or less constant, irrespective of

recession or inflation. This sector will see good growth in the long run and hiring will continue to

remain robust. Thus the Good Human Resource Practices Plays very Important role in the

success of the organization. Because ultimately everything starts with people and Employees are

the most important assets of the organization. And to keep employees satisfied and retain them in

the organization for long run in this competitive environment has become very difficult. So to

retain the Talent in the organization and to create new talent and skill is very tough. That is why

HR practices should be such that it not only Retain talent in the company but contribute for the

development of the company.

hr empirical study

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