Individual Project

Table of Contents
1.
2.
3.
4.

Introduction
HR Department and its functions
HR Policy
HR Planning
A) Issues in HR Planning
B) Measures undertaken to address the issues
5. Recruitment & Selection
a) Issues in Recruitment & Selection
b) Measures undertaken to address the issues
6. Employee orientations
7. Training and Development
a) Issues in Training and Development
b) Measures undertaken to address the issues
8. Career Planning
a) Issues in Career Planning
b) Measures undertaken to address the issues
9. Performance appraisal
a) Issues in Performance Appraisal
b) Measures undertaken to address the issues
10.
Mentoring and Coaching
11.
Compensation
a) Issues in compensations
b) Measures undertaken to address the issues
12.
Employee relations
13.
Outsourcing HR Services
14.
Conclusions
15.
Suggestions
16.
Appendix: Filled in questionnaire

1. Introduction
Human resources is one of the most valuable and unique assets of an organization.
According to Leon C. Megginson, the term human resources refers to the total
knowledge, skills, creative abilities, talents and aptitudes of an organizations
workforce, as well as the values, attitudes and beliefs of the individuals involved.
Management as a process involves planning, organizing, staffing, leading and
controlling activities that facilitate the achievement of an organizations objectives. All
these activities are accomplished through efficient utilization of physical and financial
resources by the companys human resources.
Before the 1980s, personnel administration was characterized by standardization, and
consistency and conformity were the hallmarks of the management policy. However,
today, flexibility has become a significant aspect of a companys corporate human
resource strategy. Though an organizations physical assets are major factors in
determining its success, it has now been accepted that its employees or human
resources, are equally critical assets. The successful management of an organizations
human resources is an exciting, dynamic and challenging field, especially at a time
when companies are globalizing, and employing increasingly larger numbers of
knowledge workers.
There is a vast difference between modern HRM and the personnel management that
was prevalent decades ago. By the end of the twentieth century, the managerial
philosophy that has defined the personnel function has undergone radical changes.
Over the past eighty years, the scientific management approach and the human
relations approach appeared and then disappeared too. The human resource approach
has gained prominence in the recent times.
Hero Hondas approach
Hero Honda has adopted the human resources approach, which treats the
organizational goals and employee needs as being mutual and compatible, and which
can be pursued in unison.
Research in behavioral sciences during the 1970s suggested that treating people as
resources rather than as factors of production or as human beings who act on the
basis of emotions alone, would lead to real benefits for the organization as well as for
the employee. The companys approach is based on a number of principles, some of
which are:

Employees are assets to an organization. The time and resources employed in

managing and developing them are an investment that the organization makes for
better returns in the present and in the future.
Policies, programs and practices must cater to the needs of employees and should
help them in their work and also in their personal development.
It is necessary to create and maintain conducive work environment, to encourage
the employees to develop and harness their knowledge and skills for the benefit of
the organization.
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HR policies and practices should be in alignment with the goal of balancing individual
and organizational needs. This can be achieved through a mutual process where the
organization and the employees help each other to achieve their goals.

2. HR Department and its functions

HRM functions can be broadly classified into two categories:
1. Managerial functions
2. Operative functions
Managerial Functions
Managerial functions of the human resource department are planning, organizing,
staffing, directing and controlling. All these functions have an impact on the operative
functions.
Planning
Planning involves formulating the future course of action. Planning includes
determining in advance the personnel programs and changes required that would
contribute to the achievement of organizational goals.
It also includes identifying human resource requirements and forecasting personnel
needs, foreseeing the changes in employee attitudes and evolving effective ways of
handling these changes.
Organizing
Organizing involves establishing an intentional structure of roles for people in an
organization. Structural considerations such as the chain of command, division of
labor, and assignment of responsibility are part of the organizing function. Careful
organizing ensures effective use of human resources. According to J L Massie, an
organization is a structure and a process by which a cooperative group of human
beings allocates its task among its members, identifies relationships and integrates its
activities towards a common objective. The organizing function establishes
relationships among employees so that they can contribute collectively towards the
attainment of an organizations goals.
Staffing
This is the process of obtaining and maintaining various positions at all levels, it
broadly encompasses manpower planning, recruitment, selection, placement,
induction and orientation, transfer, career progression and separation.
Directing
It is the process of directing all the available resources towards the common
organizational goals. Thus, direction is a vital management function, which ensures
maximum employee contribution and also helps in establishing sound industrial
human relations. it also involves coordination between different departments to ensure
maximum utilization of all resources including human resources.
Controlling
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The measurement and rectification of activities to ensure that events conform to plans
is known as controlling. This function measures performance against goals and plans,
identifies deviations and by placing the process back on track, helps in the
accomplishment of plans. Previous experiences and knowledge sharing help avoiding
repetitive problems, reducing the need for controlling.
After planning, organizing, staffing and directing the various activities of HRM.
Performance is verified in order to ensure that the FIRM functions comply with the
plans and directions. Auditing training programs, analyzing labor turnover records,
directing morale surveys, and conducting exit interviews are different ways of
controlling the HRM function.
Operative Functions
The operative functions of HRM are related to specific activities of FIRM, viz.
employment, development, compensation and employee relations. Since the human
resource function is unique to each organization, the activities of the HR department
differ from one organization to the other.

3. HR Policy
HR policies define the role of the HR department in an organization. These policies are
derived from the organizational and HR objectives and guide the decision-makers.
They should aim at achieving both employee satisfaction and organizational
objectives, without any conflict between the two, The HR policies of an organization
should be based on ground realities and be employee-friendly. HR policies that are
based on individual decisions of some top management staff would lead to employee
frustration and their subsequent alienation from the organization.
HR policies can be defined as the set of guidelines that determine the way in which
employees are to be treated in the organization. They are based on the organizational
culture and the external environment, apart from the organizational objectives. For
example, if an organization believes that its employees are its most important assets
and that it needs to keep them happy, then its HR policies would be employeefriendly. Similarly, if an organizations goal is to grow rapidly in the market on the
strength of its employees, this would be reflected in its policy to train and develop and
invest in the employees. However, in an organization where human resources are
treated as just factors of production, the HR department would have a very limited role
to play. In a competitive environment, where companies are all vying for the same
talent, the responsibility and demands on the HR department are immense.
Good HRM policies enable the management to keep the workforce secure, satisfied
and motivated. They also help the management in deriving better employee
performance, in better management and also in cost-savings. For example, the
organizations policy on rewarding performance would enable the organization to get
higher standards of performance from its employees and also keep them motivated.
HR policies also help in maintaining uniformity in administration across different units
and departments in the organization, as the guidelines are already set. They lead to
better control and coordination. For example, the leave policy keeps track of employee
regularity and the transfer policy of the organization supports better organizational
management.
HR policies need to find a balance between a number of factors like organizational
objectives, individual expectations, market demands, etc. Therefore, they are difficult
to formulate and implement. In other cases, the positive aspects of a policy could get
shrouded by individual fallacies at the implementation stage. In some other cases, a
policy designed earlier might no longer be relevant or desirable. HR policies need to
be updated to match the changing needs of the organization and the employees. For
example, in earlier times, pay was linked to the length of service but in todays highly
competitive environment, it is related to employee and organizational performance.
HR policies should be easy to understand and implement. They should favor the
employees of the organization and not leave room for any discrimination among them.
For example, if the performance appraisal policy of the company implies that
everything is in the hands of the immediate superior, then it might lead to a host of
problems like individual biases of the boss, special favors, employees concentrating on
pleasing the boss and unhealthy competition. HR policies should therefore be designed
and implemented with utmost care.
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HR procedures help the management in implementing the HR policies. They are

specific applications or actions. For example, suppose the performance policy of an
organization states that performance is to be rewarded. The procedure that aids in
implementing this policy is payment of annual/quarterly incentives based on employee
performance.

4. HR Planning
It is a process by which an organization ensures that it has the right number & kind of
people at the right place and at the right time, capable of effectively and efficiently
completing those tasks that help the organization achieve its overall objectives
HR Plans are mainly divided according to the period of applicability:
a)
b)
c)
d)

Strategic Planning - 5 or more years

Intermediate Planning - 3-5 years
Operational planning- 12 months
Activities Planning - daily and weekly

Strategic Planning: Analysis of issues raised by external factors. Employment

demand projection, manpower supply analysis and projection.
Intermediate Planning: Forecasting total staffing level, Forecasting number of
managers and key personnel, Forecasting net changes in managers and key
personnel, year on year.
Operational Planning: Detailing of HR activities that are incorporated in the oneyear business plan.
Activities Planning: Day-to-day HR activities
A) Issues in HR Planning
However good the planning is, the Human resource department always faces
challenges of retaining the best talent. The issues faced with HR planning can be
broadly classified are as below:

What exactly the company expects from its people?

HR has to ensure, people work as per their targets and business objectives of
the company

Bring Commitment, Competencies and Culture

Deal with trade unions

B) Measures undertaken to address the issues
The above challenges are overcome by having proper, well written HR plan in place
that covers:

Strategic Objectives of the organization and HRs role in ensuring

synchronization

Assessing Demand and Ensuring adequate Supply

Forecasting Staffing Needs and creating HR Inventory

Conducting Job Analysis

Creating Job Description with Job Specifications

Revaluating Strategic Plan from time to time

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Negotiating with trade unions and ensuring organization goals do not get greatly
affected

5. Recruitment & Selection

Recruitment and Selection aim to search and hire suitable candidate to fill vacancies in
Hero Honda with the view to satisfying human resources needs. The search may be
internal and/or external.
Any position within Hero Honda that becomes vacant will be filled, on completion of a
requisition form by the immediate supervisor. Restructured on newly created positions
will only be activated upon approval from the board.
The success and adaptability of a Company depends upon the recruitment of
employees who are flexible, adaptable and committed to the success of the Hero
Honda.
Objectives
This section aims to promote and maintain high standards of professional recruitment
practice by encouraging recruiters to adhere to best practices.
Its purposes are to:
a)
b)
c)
d)
e)

Ensure that recruitment is considered an essential part of the human resource

Strategy and consequently an integral part of the overall business strategy
Ensure and explain best practice for all types of recruitment;
Maintain professional standards whether recruits are easy to find
Ensure that equality of opportunity is considered an integral part of good
recruitment practices and procedure

Recruitment Authorization Procedure

Authorisation
All authorisation procedure detailed below must be completed prior to the
commencement on any recruitment procedure.
a)

Prior to the employment of any employee the Employment Authorisation Form

must be completed.

b)

The employment of all individuals for budgeted positions within Hero Honda
must be authorised by the Department Head.

c)

Employment of Personnel to the position of Manager of Departments will require

the authorisation of the Factory Head or Chief Executive Officer.

Procedure
a)

The Department Manager will complete the Employment Authorisation form.

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b)

The Department Manager is responsible to ensure correct authorization

procedures have been complied with.

c)

The Department Head will provide the Human Resources Officer with a fully
authorized Employment Authority Form and instruct commencement of
Recruitment.

d)
The Human Resources Officer will control that the correct authorisation has been
obtained.
When all is in order they shall commence the recruitment process.
Newly Created or Restructured Positions
Authority shall be vested in the Board to consider request for the activation of a newly
created or restructured position.
a)

Activation of a position shall be allowed by the submission of an Employment

Authorisation Form by the Department Manager to the Human Resources Officer.

b)

Once the need to fill a vacancy has been identified, the Department Manager
will submit a motivated recommendation to the Board for the activation of the
position.

c)

Internal Advertisements shall be sent via e-mail or other means to all employees
by the Human Resources Officer, while external advertisements shall be placed
in specified local newspapers.

Employment Procedure
a)

The Human Resources Officer shall receive all applications for employment and
shall acknowledge receipt thereof in writing. All applicants for employment shall
be addressed to the Human Resources Officer.

b)

The Human Resources Officer shall sort all applications that meet the minimum
appointment requirements as advertised, and then forward these applications to
the Department Manager concerned, together with a full list of all applications
received.

c)

The Department Manager, in consultation with the Human Resources Officer,

shall draw up the shortlist of candidates for interviewing.

d)

The Human Resources Officer shall invite the short listed candidates for
interviews, and will ultimately make a recommendation to the Factory Head or
Chief Executive Officer for appointment.

e)

Hero Honda shall bear subsistence and travel and travel expenses of short listed
candidates from places other than the duty station. A summary of the interviews
shall be prepared by the Human Resources Officer and kept for record purposes.
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f)

The Human Resources Officer shall ensure that Reference Check on shortlist
candidates is done, and then the employment offer in consultation with the
relevant Department Manager to the selected candidate which upon acceptance
shall be followed by an appointment letter signed by the Factory Head or Chief
Executive Officer or his/her delegate. Once the selected candidate has accepted
the employment offer, the Human Resources Officer shall send regret letters to
all the unsuccessful candidates.

Employment Interview Panel

The Employment Interview Panel shall be provided with the ground rules of and
procedures for interviewing (by the Human Resources Officer) prior to the actual
commencement of interviews.
The Panel shall consist of the following persons:
a)
b)
c)

The Department Manager concerned

The Human Resources Officer
For Management Positions the Factory Head or CEO or any of the selected Board
Member shall attend

Age
Hero Honda does, in terms of section 42(b) of the Labour Act 1992 Act 6 of 1992), not
employ any person under the age of (16) years.
Applicants of sixty (60) years and older can only be appointed on approval by the
Chief
Executive Officer or by the Board. Employees so appointed can only be appointed can
only
be appointed in a temporary capacity, and such cannot become members of the
pension Fund.
Appointment
All staff will be appointed by the Hero Honda Board of Trustees or as delegated
Letters of Appointment:
The formal letter of appointment will bear the signature of the Chief Executive Officer
or as delegated. The letter shall require the signature of the appointee before the
appointment is considered effective.
Job Description:
On appointment, an employee shall be given a job description. This shall specify the
scope and terms of reference for their position. Each member of staff is expected to
devote their time and attention to their work and not engage in activities that may
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conflict with Hero Hondas interests or negatively affect their performance. Job
Descriptions shall be reviewed yearly.
Probation:
Any appointment made on Hero Honda shall be subject to a probation period as
specified in the letter of appointment. One month towards the end of the probation
period, employees immediate supervisor shall make an appraisal report
recommending a confirmation or termination of the employees services. Where
necessary, the probation period may be extended as considered necessary by Hero
Honda. An employee who is on probation may have his appointment terminated at any
time without notice. In the event of such termination, the employee is paid for the
period worked up to the time of termination.

Confirmation of appointment:
On recommendation from the immediate supervisor, the Chief Executive Officer shall
in writing, confirm the appointment
Duration of employment:
Unless otherwise stated, employment for all staff shall be on permanent basis subject
to satisfactory completion of the probation period and availability of funds.
Personal Data
On acceptance of an appointment, the new staff member is required to complete the
Employee Personal Data form. New employees must also furnish Hero Honda with a
declaration of dependants, that is spouse and own children; next of kin and provide
photocopies of certificates and other testimonials.
Any changes in personal status shall be reported promptly to the Human Resources
Officer by completing a fresh Personal Data Form. Staff records and related
correspondence shall be treated confidentially at all times.
Induction
All new staff shall undergo induction training to assist them in the process of becoming
integrated to the institution within the shortest time possible. The respective
immediate supervisor in collaboration with the HR Officer shall conduct induction
training. See checklist for induction as Annexure:
A) Issues in Recruitment & Selection
In a manufacturing industry where trade unions play a significant role in functioning of
that set up, organizations have to respond quickly to requirements for people. Hence,
it is important to have a well-defined recruitment policy in place, which can be
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executed effectively to get the best fits for the vacant positions. Selecting the wrong
candidate or rejecting the right candidate could turn out to be costly mistakes for the
organization. Selection is one area where the interference of external factors is
minimal. Hence the HR department uses its discretion in framing its selection policy
and using various selection tools for the best results.
There are a number of issues faced in the recruitment and selection process and they
can be:

Wrong job description: Starting the recruitment process with a unclear Job
Description is the first mistake most organizations do.

Alternate interviewing panel Main interviewer not being present or not

participating

Non compliance to defined recruitment and selection process

Wrong recommendations by internal employees

Demand by trade unions

B) Measures undertaken to address the issues

The recruitment process is an annual affair at Hero Honda carried out in two phases.
Phase one comprises hiring managerial and engineering recruits under the supervision
of corporate HR, in addition to a plant representative (either the HR head or a General
Manager). Campus recruitments and advertisements are main sources of hiring these
people.
Phase two involves shop floor hiring, for which the plants HR is solely responsible.
Hero Honda has put in considerable effort to drive its recruitment process at the plant
level. Pre-requisites have been laid down for positions at the plants. A diploma from
Industrial Training Institutes (ITIs) and experience determine a candidates rank in the
organisation. Prior to the interview process, a written exam is held to assess
candidates technical / professional knowledge, IQ and general aptitude. Traits like
honesty, earnestness and integrity are assessed during the interview. The companys
internal sources are exercised for filling in senior level hiring needs. Employees from
company competitors are also considered seriously.
Following are the basic steps that need to be conducted for all the levels:

Preliminary interview
Selection tests
Employment interview
Reference and background analysis
Selection decision
Physical examination
Job offer
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Employment contract
Evaluation

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6. Employee orientations
The human resources (HR) department serves as a link between management and
employees. Specific responsibilities of HR Dept include

Defining positions and related Roles

Defining HR Policies and Guidelines
Hiring and Recruitment
Payroll
Employee Career Management
Employee Training
Salary & Compensation
Employee recreation
Motivational Activities

During the orientation phase, all the above are covered in brief, with more stress on
the policies such as:

Leave Policy
Attendance Policy
Performance appraisals
Trainings
Compensation & Salary
Employee Recreation
Etc

We also explain the appraisal process in brief:

The performance review is done bi-yearly in the organization and we explain how do
we access the employees and how promotions are handled depending on the following
points:

How well an employee performed in his / her present job

How much potential an employee has for future responsibilities.
How much additional knowledge he / she have acquired for further advancement.
Personal attribute, work habits, attitude towards self and others, ability to get along
with the team, leadership qualities, personal contribution to the success of the
company determines his / her competence for promotion.
Feedback given by all those who work with the employee such as his / her
superiors, subordinates, peers and the customers

We explain the work culture in brief, covering:

Dress Code
Language
Employee Addressing
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Email Utilization
Feedback Culture
Working Days
Mobile use
Etc

The main objective of an orientation programme is to welcome a new joinee and make
him/her comfortable with the new environment. This ultimately helps in getting the
best out of an employee as he/she is given the right direction from the very first day in
Hero Honda.

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7. Training and Development

We at Hero Honda, assess the training needs as below:

TRAINING NEEDS ANALYSIS

DEVELOP TRAINING OBJECTIVES
REVIEW AVAILABLE TRAINING METHODS
DESIGN/SELECT TRAINING METHODS
DESIGN TRAINING EVALUATION APPROACH
IMPLEMENT TRAINING PROGRAMS
MEASURE TRAINING RESULTS

Training plays an important role in man-power development even at the level of

industrial unit.
Every organization needs to have well trained and experienced people to perform the
activities that have to be done.
Trainings are divided into two categories:
Trainings with tangible benefits: These comprise mostly of technical trainings and the
results are tangible like increase in productivity etc.
Trainings with intangible benefits: Actual returns cannot be fully measured, the RoI
could perhaps be estimated in terms of indicators such as longer tenure; promotions
to higher levels of responsibility and cross transfers, and also the success of
employees at these higher levels of responsibility.
Identification of training needs :
- Self assessment by the employee
- Training needs identified by the reporting officer as per the appraisal process
Nomination policy for internal and external training programs
Monthly training calendar is prepared by HR and nominations are given by respective
head of departments as per the training need matrix prepared.
Training facilities available in the organization
Special training facility, by the name of Gurukul, has been developed by the
organization. It takes care of all the technical trainings given to the operators. Special
model machines and simulators are used for the purpose. These trainings are
imparted by internal staff members.
There is no written policy regarding the minimum number of training days .
We use the following evaluation criteria to assess training effectiveness:
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Feedback form given to the trainees for rating the trainer based on:
- Contents of the training
- Knowledge of the trainer
- Communication skills of the trainer
- Linkage or relevance of the training to present job.
- Duration of the training
- Pace of the training.
A) Issues in Training and Development
There are number of issues faced by every organization pertaining to Training and
Development. It all depends on how serious the management is on training their
people. Many organizations feel that training is a non value added activity as they can
not see immediate results. Good organizations like Hero Honda stresses very much on
Training as this is the only tool that helps an individual excel in his/her career and
therefore the overall organization as a whole. It is an investment and not a cost to any
organization.
The three major issues faced are:

Retention of knowledge
Attrition
Training is seen as a cost and not as investment by managers

B) Measures undertaken to address the issues

To overcome this phenomenon Hero Honda has taken a new initiative. Each training
programme now is accompanied with a small project of 8 to 10 weeks that the trainee
has to manage along with his/her daily activities. The objective is to apply what is
learnt in the training to the day to day activities, thereby implementing the new
learning.
We also conduct something called as quarterly knowledge evaluation tests (KET), to
evaluate retention of knowledge after the training and usage in the day to day
operational schedule. The scores form the basis of subsequent trainings and a part of
the performance management system.
We, at Hero Honda conduct various personality effectiveness training for people below
the ranks of managers to enhance their productivity, soft skills etc. At the same time,
we conduct leadership training/workshops for the senior management to align them
well for the organization objectives and their individual growth aspirations. Today, we
have a set up called Gurukul, used for our investments on people and their growth
plans.

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8. Career Planning
In order to retain the best talent, career planning and progression is very important.
Many surveys have shown that money is not the real motivator for people to leave the
company, but the opportunities. Hero Honda follows a clear career planning strategy
that ensures upward/linear movement of its employees based on performance and
certain other criteria.
Objectives

To
To
To
To
To
To
To
To
To

identify replacement needs

provide opportunities for high potential workers (retention)
increase pool of promotable employees
support implementation of business plan
guide individuals in their career paths
encourage the advancement of diverse groups
improve ability to respond to changing environmental demands
improve employee morale
cope with the effects of downsizing, attrition, retirements

Procedure

Assess the potential vacancies in leadership and other key positions (who is of
retirement age? Which positions/departments/divisions are most affected? Etc)
Assess the readiness of current staff to assume the positions (competencies,
IDPs discussed under Training and Development)
Develop strategies to address these needs based on the skill gaps.

A) Issues in Career Planning

The key issue faced by companies is attrition. It is largely contributed by the following
factors:

Organisational priorities are unclear to employees

No clear development plans in place
Performance is not the criteria for promotions
No challenges, no job rotation
Trade Unions demand for retention, despite poor performance

Most manufacturing organizations face imbalance of organizational priorities and

individuals aspirations, and hence face issues in career planning.
B) Measures undertaken to address the issues
It is very important to assessing the employees needs and organizational needs.
Therefore, common goal setting is very important.
It is very critical to understand how far & how fast can employee move on career path.
So, the transition plan plays a key role here. It relates to changes expected to a career
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goal, analyzing transition factors, setting goals and a timetable and other career
planning options like normal advancement, lateral movement, and flexibility of change
to upper/lower grade and Job Enrichment.
With the above approach, one can clearly determine and calculate the risks attached
as to how well it will pay off. Therefore, we believe that career planning is not leaving
the decision to luck, or getting information but never deciding or going along with
someone elses plans. We understand it as OUR EMPLOYEEs future.

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9. Performance appraisal
Following guidelines are laid down; all concerned follow the same guidelines in Hero
Honda:
Importance of Annual Appraisal:
It is in the interest of the Company as also of the employee that the value of a proper
Appraisal System is recognised by all concerned. Three main purposes of appraisals
are as under:

Career Progression
Placement and
Training and Development

Appraisals are also used for:

Regularisation after probation

Manpower Planning
Succession Planning
Salary Progression
Merit Awards and
Discharge, Demotion, Early Retirement and Termination

Form and Content of Appraisal Report:

Appraisal is to be recorded on the form laid down by the Company, from time to time.
In all cases, where the work of an appraisee has been graded as Outstanding, the
particular features of work of the appraisee, standard must be applied before
Outstanding grading is given to any appraisee.
Similarly, examples should be given in case of those appraisee whose performance
has been graded as Fair or Poor.
Period and Frequency of Appraisal Report:
Appraisal should be recorded bi-annually, for the financial year i.e. from April 1 to
March 31 next year. Appraisal should also be recorded when either the Reporting
Officer or the Appraisee is transferred within the period of the appraisal. In such
cases, each appraisal report should indicate precisely the period to which it relates.
The appraisal for the earlier part / parts of the year should be recorded at the time of
transfer or immediately thereafter and should not be deferred till the end of the year.
No Appraisal Report should, however be recorded unless a Reporting Officer has at
least three months experience about the work and conduct of the appraisee to base
his report on. The Reviewing Officer should also have three months experience on
which to base review of the Appraisal Report.
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Objectivity in Appraisal:
In order to minimise the operation of the subjective human element of conscious or
unconscious bias, the Appraisal Report of every appraisee should contain the
assessment of more than one Appraiser, the only exception being in cases in which
there is only one level above the appraisee, such as Junior Staff.
Channel of Appraisal Report:
Appraisal Report will be recorded by the Site Incharge for the J1, J2, S1 and S2. All
appraisal report above the site incharge will be done by the Factory Manager or
General Manager.
GUIDELINES TO REPORTING OFFICER:

Each factor should be weighed on its own and not linked to other factors in the
appraisal form
All ratings should be done at one sitting and in a relaxed frame of mind.
Appraisee should be assessed for his / her performance for the performance period
only.
Appraisal should be based on ones own Judgement and not on what is heard
Qualities should be judge with fairness.
Isolated instances should not be allowed to influence the rating.
Assessment should be made objectively and must have clear proof and supporting
documents
The appraisee should be given the kind of indulgence the appraiser would like for
himself.

Communication of appraisal result:

Every Reporting Officer must realise that it is his duty not only to make an objective
assessment of his subordinates work and qualities but also to give him at all times,
necessary advice, guidance and assistance to correct his faults and deficiencies. If
this part of duty is properly performed by the Reporting Officer, there should be no
difficulty about recording adverse entries because these would only refer to defects
which have persisted despite efforts on the part of the Reporting Officer to have them
corrected. Accordingly, in mentioning any defects / faults, the Reporting Officer should
also give an indication of the efforts he has made by way of guidance, advice,
admonition etc. to get the defects removed and the result of such efforts.
No adverse remarks relating to an alleged failing will be made in the Appraisal Report
of any employee unless the same has been earlier brought to his notice. As soon as a
defect / failing is noticed in an employee by the Reporting Officer, the same should be
brought to the employees notice verbally and, in more serious cases, the same should
be conveyed in writing, with the copy of the same, duly signed by the employee
concerned, to be placed on the personal file. Such warning on the personal file of the
employee will be sufficient justification for recording adverse remarks in his / her
Annual Appraisal Report.
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A) Issues in Performance Appraisal

In sophisticated, well-managed organizations, performance appraisal is the single
most important management tool. No other management process has as much
influence over individuals careers and work lives. Used well, performance appraisal is
the most powerful instrument that organizations have to mobilize the energy of every
employee of the enterprise toward the achievement of strategic goals. Used well,
performance appraisal can focus every persons attention on the companys mission,
vision, and values. But used poorly, the procedure quickly becomes the butt of jokes
and the target of Dilbert lampoons. Make no mistake. Performance appraisal is
difficult. Doing performance
appraisal is like being in the Olympics of management. Few people ever get the
chance to participate; even fewer are true masters.
So, it is imperative to understand the overview of why performance appraisal is an
incredibly powerful but underappreciated management technique. Understand the
four phases of an effective performance management system: performance planning,
execution, assessment, and review.
Then the performance appraisal form. Yes, there is an ideal form. Then a clearly
defined, and the most effective performance appraisal process.
B) Measures undertaken to address the issues
We follow a four-phase model to address the issues:
Phase 1: Performance Planning
At the beginning of the year, the manager and individual get together for a
performance-planning meeting. In this hour-long session they discuss what the person
will achieve over the next twelve months (the key responsibilities of the persons job
and the goals and projects the person will work on) and how the person will do the job
(the behaviors and competencies the organization expects of its members). They
typically also discuss the individuals development plans.
Phase 2: Performance Execution
Over the course of the year the employee works to achieve the goals, objectives, and
key responsibilities of the job. The manager provides coaching and feedback to the
individual to increase the probability of success. He creates the conditions that
motivate and resolves any performance problems that arise. Midway through the year
perhaps even more frequentlythey meet to review the individuals performance
thus far against the plans and goals that they discussed in the performance-planning
meeting.
Phase 3: Performance Assessment
As the time for the formal performance appraisal nears, the manager reflects on how
well the subordinate has performed over the course of the year, assembles the various
forms and paperwork that the organization provides to make this assessment, and fills
them out. The manager may also recommend a change in the individuals
24

compensation based on the quality of the individuals work. The completed

assessment form is usually reviewed and approved by the appraisers boss. Others
perhaps the department head or the compensation managermay also review and
approve the assessment.
Phase 4: Performance Review
The manager and the subordinate meet, usually for about an hour. They review the
appraisal form that the manager has written and talk about how well the person
performed over the past twelve months. At the end of the review meeting they set a
date to meet again to hold a performance-planning discussion for the next twelve
months, at which point the performance management process starts anew. Of course
there may be many individual variations on the basic theme, but most sophisticated
companies generally follow this four phase process like Hero Honda. Figure 1-1
illustrates the basic four-phase process

25

26

10. Mentoring and Coaching

The result of most appraisals are training and coaching. Also, it plays an important role
in mapping the organizational requirements to the skills of the employee. So, coaching
and mentoring plays an important role in the post appraisal phase.

The Manager as Coach

The production manager is a person who supervises a number of operators. His/her
situation is almost identical to that of the athletic coach in many ways. First of all, the
manager must get the best effort and performance from each employee and is
constantly trying to help employees improve, both for their own benefit and for that of
the organization. In many situations, the manager is concerned with a team of
workers, as well as with the performance of each individual worker. This is similar to
the situation of coaches of team sports like basketball, football, and hockey. Other
times, the manager is primarily concerned with individual workers because each
person pretty much works alone, as in sports like swimming, track, tennis, and golf.
If employees performing under a manager dont like the situation, they have available
options such as letting up on performance, complaining, causing dissension among the
other workers, and quitting.
Athletes can do all these things, too. Managers have some employees who are better
than others and who therefore receive higher rewards than others. Sometimes the
employees make more money than the manager does. Managers are under constant
pressure to produce with the people and resources available. Sometimes, accidents,
sickness, and other problems reduce these resources. Like coaches, managers are
concerned about competition. In order to stay in business, they must meet or beat the
27

competitionwith whatever resources, they do have.

Finally, managers have the same opportunities to give rewards that coaches have, and
they face the same limitations. Most managers are limited in how much money they
can give, but they have ample opportunities to give nonfinancial rewards such as
praise, additional responsibility, additional freedom, and special job assignments and
to solicit team members ideas.
Coaching Approaches and Techniques
The terms coaching and counseling are frequently used to describe the on-the-job
conversations that take place between manager and employee. Some organizations
use the words interchangeably to mean the same thing. Others differentiate between
the two words.
Counseling:
1. The employee usually initiates discussion.
2. Counseling takes place when a problem arises or when the employee feels a
problem needs solving.
3. The problem can be personal or job oriented.
4. Emphasis is on listening on the part of the manager.
5. The manager avoids giving specific advice and helps the employee solve his or her
own problem.
6. The objectives are to solve a specific problem and/or to relieve tension on the part
of the employee.
Coaching:
1. The manager usually initiates discussion.
2. It is done on a regular basis.
3. It is job oriented.
4. It is positive or corrective, with emphasis on telling, training, and teaching by the
manager.
5. The manager frequently gives specific advice on what to do and how to do it.
6. The objective is to improve the job performance of the employee as an individual
and the team.
What Coaching Is Not
Managerial coaching is not a specific set of instructions that a manager has developed
about activities or behavior of the employee. It is not a set of tasks to be performed
with demands for vaguely determined outcomes such as hitting the ball. And it is
not some action or policy that inhibits movement, requires sitting overly long in one
position, or extols the virtues of patience and humility.
The following examples represent what is often the bulk of the activities of the
manager who imagines that he or she is coaching employees:
28

The plant manager who daily calls her staff together and pours forth wisdom about
the mistakes of the day before, with somber warnings of Lets watch that one, is
seriously attempting to coach but is lamentably ineffective at it
The sales manager who uses staff meetings to divulge deep insights about topmanagement goals and thinking, in the form of ten-minute speeches, is often doing
nothing more than using communication as a club to beat down any incipient new
ideas or change from employees.
The staff manager who counterpunches with employees, insisting that they produce
new ideas but shooting these full of holes when they appear, may be utterly sincere
but is also utterly incompetent in coaching

What Coaching Is
The effective coaching function is more apt to take the form of working on forwardlooking plans and objectives for employees in a way that keeps them moving
constantly toward new areas of experience, new demands for personal skill
development, and application of ingenuity and problem solving. On-the-job coaching
improves job performance in two ways, and the principles and approaches involved
are the same for both. First, day-to-day coaching takes place whenever the need
arises, and it bolsters the relationship between the manager and the employee. If an
employee makes a mistake, the manager helps the employee correct it, and this
coaching should prevent the same mistake from happening again. If, on the other
hand, the employee does an especially good job, the manager compliments the
employee. This is also part of the coaching process.
The other reason for coaching is to help the employee implement the performance
improvement plan that was developed as part of the performance review program.
The manager should periodically see how the employee is progressing and provide
help in implementing the plan.
Day-to-Day Coaching
The manager must play a day-to-day coaching role, which is based on observing the
performance of the employee. If the employee performs well, the manager provides
positive reinforcement. If the employee fails to do so something that should be done,
the manager calls it to the attention of the employee to find out why it wasnt done
and to see that it is done. Or the employee may do something that should not be
done.
This requires the manager to find out the reason for the mistake and to take whatever
action is appropriate. The key to effective coaching is to handle problem situations
without causing resentment on the part of the employee. Resentment can easily be
created by an eager coach who is overly anxious to correct an error.
For example, a direct approach to pointing out the mistake and an order to the
employee to do it right could well cause resentment. To avoid resentment, a tactful
approach is usually required.
29

If the manager sees an employee making a mistake, there are four possible courses of
action to take:

Ignore the situation and hope that the employee will see the mistake and correct it.
Call immediate attention to the mistake and ask the employee to do the right thing.
Use an indirect approach such as, How are things going? If the employee knows
about the mistake, she may frankly admit the mistake and tell the manager, dont
worry. Ill take care of it. If the employee doesnt realize that a mistake has been
made, the answer might be, Fine. No problems! In this case the manager will
have to call attention to the mistake and ask, what can we do to correct it?
Use the sandwich approach. This means to praise the subordinate for good work,
call attention to the mistake, and end up with a positive statement such as, Im
sure that this wont happen again.

So, the overall objective of Coaching and Mentoring brings out the following outcome:

People will start to find their own answers

People will become more resourceful
People will start to integrate a coaching approach into their behavior
The manager will have more time and space for the strategic part of his job
The manager will be able to work more effectively with his peers and others

So, the framework followed at Hero Honda looks as below:

30

11. Compensation
The compensation rules in Hero Honda are as per the manufacturing industry.
Scale of Pay:
The scales of pay of various posts in the Company shall be such as may be laid down
by the Company, from time to time.
The scales of pay, at present, are as per the Wage Structure.
The designation of posts with their scales of pay are given in Wage Structure
Drawl of Pay:

Unless otherwise provided, an employee shall draw pay and allowances attached
to his post from the date he assumes the duties of the said post and shall cease
to draw them as soon as he ceases to discharge the duties.
Provided that if he assumes the duties at the place specified in the afternoon of
the date, he shall commence drawing pay and allowances of that post from the
following day.

Fixation of pay of an employee on Initial Appointment:

Initial pay of an employee, on joining the Company, shall normally be fixed at the
minimum of the pay scale of the pay scale of the post to which he is appointed.
Fixation of pay in excess of the minimum of the pay scale and grant of premature
increment(s) shall require the sanction of the Management Committee.
Fixation of pay of an employee on Promotion / Appointment to a Higher Post in the
Company:
Where an employee is promoted or appointed to another post carrying duties and
responsibilities of greater importance than those attached to the post held by him, his
initial pay in the pay scale of the higher post shall be fixed at the stage next above, his
pay at the time of promotion by granting one increment at the stage at which such
pay has accrued, or at the minimum of the pay scale of the higher post, whichever be
more.
Drawl of Increment:
An increment shall be drawn on the basis of recommendations of a committee to be
constituted by the Chairman, each year, for this purpose, and unless it is withheld, it
shall be granted on the 1st of April each year.
Fresh entrants joining the Company during the year shall earn their first increment
with effect from April following the month of their joining but payment thereof with
effect from April shall be made only after completion of six months of service and
issue of orders in regard to satisfactory completion of their period of probation.
31

The increment may be withheld if the conduct of an employee has not been good or
his work has not been satisfactory, after following procedure laid down in the Conduct
and Discipline Rules. Premature increment(s) may be granted to an employee for
sustained meritorious work, by the Chairman.
Deputation Abroad:
No deputation abroad shall be sanctioned without previous approval of the
Management or its appointed nominee.
When an employees is, with prior approval of the Management, deputed for duty out
of India, temporarily, he will be allowed to draw, during the period of deputation, the
same pay which he would have drawn had he remained on duty in India.
An employee, on deputation out of India, may also be granted a Compensatory
Allowance / Foreign Allowance of such amount as per the policy prevailing on
deputation.
The Foreign Exchange equivalent of the pay and Foreign / Compensatory Allowance
shall be calculated at such rate of exchange as determined from time to time by the
Government of India

32

The typical compensation structure has the following components:

33

The typical salary statement looks as below:

A) Issues in compensations
Compensation can be volatile and subject to large revisions in
Wages and salaries

Increasing impact of irregular pay

Stock options
Bonuses

Pensions

Lack of timely, consistent source data

Trade Union Demands:

Demand of hike irrespective of performance

Managing layoffs and compensation to laid off personnel

34

B) Measures undertaken to address the issues:

Without doubt, one of the most contentious elements of running a business is that of
employee salaries. Why, then, have I lost count of the number of people who complain
to me about their salary situation and their suspicions, or often outright knowledge,
that others at the same level receive more?
Similarly worrying are those who havent received a pay rise in years, despite the
ever-increasing cost of living, and who dont feel able to discuss the issue with their
boss for fear of coming across as money-grabbing. While most of us aim to find a job
that fulfils us emotionally as well as financially, we all deserve to be paid a fair wage.
In reality, when handled from an ethical standpoint, salary requests need not be the
bane of your life and the cause of upset to your team.
The starting point is to do your research and find out the average pay for someone in a
similar position elsewhere in the country. If you cant compete on this level, for
whatever reason, think about offering a range of non-financial benefits that will prove
equally as attractive. People are increasingly concerned about their work/life balance,
so initiatives such as flexible working, duvet days, charitable involvement or a great
holiday package can help to swing the balance in your favour.
One may also wish to consider a bonus or profit share scheme in addition to a basic
salary. In this way, everyone is aware that their success is directly linked to that of the
company and their role within that growth.
Once the foundations are in place, its important to agree and publicise the pay
structure for each level. This may be a flat pay band for each job description, or could
include a level of flexibility that is dependent on peoples performance. If you choose
the latter route then you need to provide clear guidelines as to whats required to
achieve the highest salary for each position. Wishy-washy excuses wont cut the
mustard here and neither will continually moving the goal posts.
We decide whether we will run an annual or purely progress-based pay rise system (or
both); then implement a regular appraisal structure where people are fairly evaluated
against their job description and personal objectives, agreed between the employee
and their manager.
Appraisals should include feedback from colleagues at all levels to ensure they are not
being judged purely by one person whose view will be very subjective. This approach
will also weed out those people who present a positive impression to their senior
managers but fail to show the same respect to more junior members.
Maintaining open levels of communication at all levels, combined with clear
expectations, will ensure that everyone knows where they stand and the conditions
upon which their next pay rise will be based.

35

12. Employee relations

All superiors and Department Managers take up responsibility for personnel who report
to them. Management staff contribute to the maintaining of cordial relations with the
work force and develop a healthy working relationship, especially in an environment
where trade unions play a significant role in production and therefore the profitability
of the organization.
For this to be possible, the managers are made familiar with

Terms of settlement
Important provisions of labour laws
Types of misconduct and action to be taken
Art of handling grievances

Management staff keep the Site Personnel Department fully informed of any
significant development on a daily basis that is likely to lead to poor Labour
Management Relations.
Supervisors are made careful and discriminate in acts that are directly work related
and attempt to resolve it along with their Managers, keeping the Site Personnel
Department well informed. Any matter that is likely to gravitate is immediately
communicated to the Site Personnel Department.
The Site Personnel Department, being specialist Staff will provide information to the
Line Managers and educate them on labour matters at meetings and on a regular
basis through programs.
Some of the guidelines to employee relations are laid out in the following policies:

Leave policy
Conduct and Discipline policy
Uniform policy
Meals policy
Grievance policy

36

13. Outsourcing HR Services

At Hero Honda, we have outsourced Payroll administration, benefits administration,
recruitment and risk management activities.

Payroll administration: Produce checks, handle taxes, and deal with sick time
and vacation time

Employee benefits: Health, Medical, Life, 401(k) plans, cafeteria plans, etc

Recruitment: Candidate sourcing, short-listing and background interviews

Risk management: Workers' compensation, dispute resolution, safety inspection,

office policies and handbooks
The HR department used to be treated as a cost-consuming function. Management
understands that a Human Resources department is a critical component of employee
well-being in any business, no matter how small. This has led to HR Outsourcing
Services tasks like payroll, benefits, education/training, recruiting, personnel
administration, organizational development and workforce management.
HR Outsourcing Services generally fall into three categories: Professional Employer
Organization, Business Process Outsourcing and Application service providers or eservices. When one outsources HR functions, some HR Outsourcing Services go with
the "all-or-nothing" approach, requiring that they handle all your HR functions or none
at all.
HR Outsourcing Services help clients resolve this dilemma, by helping you outsource
the activities that get in the way of the things necessary to support growth. HR
Outsourcing Services are able to offer a complete range of HR outsourcing services
along with a full complement of HR consulting services. Their operations serve
organizations from 5,000 to 500,000 employees across virtually every industry.
One of the reasons to use HR Outsourcing Services is to streamline processes and
make them more transparent to employees. Technology is usually a key in achieving it.
HR Outsourcing Services also help preserve the sanctity of information between
employee and employer. HR Outsourcing Services offer a strategic initiative to cut
costs and access to intellectual capital not available in-house.
HR Outsourcing Services are becoming more sophisticated. CEOs are involved to
ensure the long-term success of strategic off-shoring decisions. On their part, suppliers
understand that they must compete globally and that outsourcing will play a more
transformational and strategic role for the client.

37

14.

Conclusions

Human resource management is one of the most complex and challenging fields of
modern management. A human resource manager has to build up an effective
workforce, handle the expectations of the employees and ensure that they perform at
their best. He/she also has to take into account the firms responsibilities to the society
that it operates in.
Traditional approaches to personnel management emphasize command and control.
These have now given way to new approaches characterized by greater freedom and
support to the employee. This transformation is almost complete and many successful
companies today empower their employees to manage most aspects of their work.
Your employees are the biggest asset you have. Their performance and attitude can
result in the success or failure of your business. The most difficult part of any
manager's job is people management. He or she is required to lead, motivate, train,
inspire, and encourage. On the other hand, he or she is also responsible for hiring,
firing, disciplining, training and evaluating. These functions seem to be at odds, but a
successful manager can integrate both the positive and negative aspects of these
tasks to create a positive, productive work force.
People management, also known as human resource management (HRM),
encompasses the tasks of recruitment, management, and providing ongoing support
and direction for the employees of an organization. These tasks can include the
following: compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication,
administration, and training.
When managing the people within an organization, a manager must focus on both
hiring the right people and then getting the most out of these people. New personnel
must provide the organization with the best talent available that meets the needs of
the business. The organization must look ahead to how a new employee can be used
to their fullest. Getting the most out of an employee means a business has consistent
policies and practices in place to provide its people with appropriate training and
development. Employees are involved as "partners" in the business.
Probably the most important task a manager will face when dealing with the people
under his direction is that of bringing out the best in them. Unlocking people potential
is often seen as the key to any business's success. When an employee's talents are
not channeled correctly, their behavior can seriously compromise the success of an
organization. Some of the roles that an employee who is not being used to his
potential can take on are as follows: procrastinator, martyr, gossip, manipulator,
backstabber, narcissist, a deer in the headlights, black hole, stonewalled, curmudgeon,
bully, and predator.
Instead of dealing with employees that develop defense mechanisms to mask their
dissatisfaction with their work situation, let's look as some ways to encourage effective
behavior at work. After a problem behavior has been identified, address the employee
immediately. Discuss taking responsibility for the ineffective behavior, how the
38

behavior manifests itself, and the effect the behavior is having on the organization.
Next, give the employee alternatives to his current behavior. In other words, teach him
or her how the principles of achievement:

* Cooperation * respect * self-motivation * trust * self-discipline

Now that the employee has alternatives to their current behavior, draw up a
performance improvement contract in which he or she agrees to specific actions to
change his or her ineffective behavior. After the contract is signed, a manager needs
to stay involved and committed to the process of change. He or she cannot assume
that the problem will be automatically fixed now that it has been brought to light. The
employee will require praise and reinforcement of any progress that they are able to
make. If positive change is to occur, it will be evident soon after the initial
confrontation. If this does not occur, a termination meeting must be scheduled quickly.
One employee's toxic behavior can quickly spread throughout an organization if it is
not dealt with quickly and efficiently.
When evaluating an organization's workforce, there are several areas that must be
addressed. First, the staff must have the tools and resources that they need to do their
jobs effectively. Employees cannot be blamed for an organization's inefficiency if they
are not provided with the equipment necessary to perform adequately. Next, get to
know each employee as an individual and make sure that they are aware of their
specific role within the organization. Clarify their responsibilities and goals. Also,
involve each employee in making decisions which affect their area of expertise. This
will result in the employee feeling that they "have a say" in what goes on in the
organization and he or she will feel a sense of ownership. Finally, make sure that
employees have an opportunity to have fun with their coworkers at appropriate times.
People Empowerment can be a very effective tool within the field of people
management. This technique can be used to involve employees in any improvement
program within an organization. Authority, accountability, and responsibility are
delegated to the employees for improving the processes which are under their control
without first having to obtain permission from management before making changes.
This can be successful only when employees are recognized, congratulated, and
rewarded for their commitment to problem solving.

39

15.

Suggestions

Please write as you feel. This can be even two points (based on what you feel at your
company), or you can cut a couple of paragraphs from above and paste it here.

40

16. Appendix: Filled in questionnaire

Human Resource Management Practices in Hero Honda
Introductory information:
1. Name of the organization (optional): Hero Honda Motors Limited
2. Year of inception: 1984
3. Ownership of the organization (Please tick the appropriate):
A) Public Sector
B) Private sector
C) Joint Venture (public & private)
D) Joint venture (private & private)
4 Locations of business:

A) Single location

B) Multi location

5. Nature of Business (tick the appropriate):

1. Automobiles
9. Hospitality
2. Banking
10. IT
3. Cement
11. ITES
4. Chemicals & Fertilizers
12. Petrochemicals
5. Electronics& Telecommunications
13. Power
6. Engineering
14. Processing
7. Pharmaceutical
15. Retail
8. FMCG
16. Textiles
17. Others (please specify)
6. Total number of employees (Headcount) of the organization in your present location
(please tick the appropriate)
A) Less than 500
B) Less than 5000
C) Less than 10,000
D) Less than 20,000
E) 20, 000 and above
7. HR Department
1. Year of inception of HR department: 1995
2. The designation of present head of the HR department : G.M
3. The location of HR department in the organizational set-up: Independent/a
department in a division ( Please specify)
4. Number of employees in HR department.
Category

Number of employees

Managerial
Supervisory
Clerical
Others

04
8
7
3
41

8.

Please give the following information regarding the managerial cadre employees
of HR department? CAN NOT PROVIDE as CONFIDENTIAL
S
N

Designatio
n

Qualificatio
ns

Mode of
Entry*

Experience in years
HR Exp. Non HR
Exp

Functions

1
2
3
4
5
6
*Direct recruitment/transfer/promotion
9. Does the company have a formal policy and procedure for aligning HR practices
with the strategic goals of the organization?
YES/ NO
10.
If yes, how often do you undertake this process?
- Beginning of the year
- Middle of the year
- End of the year
11.
How do you undertake this process and who are involved in this?
Goal Setting This is the period where organizational objectives are
linked with strategic initiatives of each function
KRA and KPI setting
KRA Deployment
Same are forwarded to the H.R. for necessary action where required.
Apart from this monthly OPCOM is held where the current status of the
yearly Business goals of the company is discussed by the respective
department heads.

42

Human Resource Planning

1. Does the organization undertake human resource planning?
2. If yes: Short term/long term/ both
3. What are the reasons for manpower demand?
a. Long-term strategic plans
b. Immediate business goals
c. Employee quits
d. Sales forecasts
e. Expansion of production
f. Technological changes
g. Others (specify)

YES/NO

4. Presently your organization is: over staffed /understaffed/optimally staffed

Some individual departments are understaffed
5. Please state reasons in either case
In some functions (particularly like machine maintenance), specially
trained persons are required.
Regular technical trainings are organized for them. If a person from such
a function leaves, it becomes very difficult to replace him/her. Not only it
is costly to train a new person, it is also difficult to find experienced
people.
6. What are the problems the organization faces with respect to human resource
planning?
a) High Attrition rate of GETs: To take care of its long term plans
company recruits GETs directly from the campus. But the attrition
rate is very high among them. Company invests on them for first
couple of years and all that goes waste if they leave.
b) As the company is now more than 25 years old, the no. people
attaining the retirement age every year has increased.
7. Mention the measures taken to address the problems
For high turnover rate among GETs:
- Increased remuneration in GET period.
- Extending the facilities like new vehicle loan in GET period.
- Promoting the GETs to Assistant Manager grade directly after they
complete one year GET period. Earlier they were taken as
Engineers/officers after they completed the GET period.
Recruitment & Selection
1. Please state the overall recruitment and selection policy of the organization?
The recruitment process is an annual affair at Hero Honda carried out in two
phases. Phase one comprises hiring managerial and engineering recruits
under the supervision of corporate HR, in addition to a plant representative
43

(either the HR head or a General Manager). Campus recruitments and

advertisements are main sources of hiring these people.
Phase two involves shop floor hiring, for which the plants HR is solely
responsible. Hero Honda has put in considerable effort to drive its
recruitment process at the plant level. Pre-requisites have been laid down
for positions at the plants. A diploma from Industrial Training Institutes
(ITIs) and experience determine a candidates rank in the organisation. Prior
to the interview process, a written exam is held to assess candidates
technical / professional knowledge, IQ and general aptitude. Traits like
honesty, earnestness and integrity are assessed during the interview. The
companys internal sources are exercised for filling in senior level hiring
needs. Employees from company competitors are also considered seriously.
2. The sources of candidates at various levels
Level
Cam Employ
Advertise Placem Interne
pus
ment
ment
ent
t
Exchang
Agenci
e
es

Intern
al

Network
ing
&
Referral
s

Others
(Specif
y)

Manage
rial

Staff
operators
Others
(pl.
Specify)

3. Please mention the steps in the process of selection of employees at different

levels.
Following are the basic steps for all the levels:

Preliminary interview
Selection tests
Employment interview
Reference and background analysis
Selection decision
Physical examination
Job offer
Employment contract
Evaluation
44

4. Please indicate the priority of methods used for different levels

Level

Technical
Testing

Psychological
Testing

Intervie
ws

Reference
Checks

Others
(Please Specify)

Managerial
Staff
Operators

5 What is the final criterion for selection? Choose all the criteria and indicate the order
of important for each 1 is most important; 10 is least important.
Remarks
M
S
9
9
8
8
1
2
3
7
5
6
4
M

OPR
8
7

Selection Criterion
Lowest price (salary demanded)
Knowledge about the local culture and
environment
6
5
Functional competence
7
4
Previous experience with a similar
organization
5
3
Best fit between the person and the job
3
6
Best fit between the person and the
organization culture
2
2
Ability to learn
1
9
Potential of the person to take up responsible
position in future
4
1
Attitude of the persons
Others (please specify)
= Managerial, S = Staff, Opr= operator, O = Others
6. Do you link selection process to the overall business strategy?

YES/ NO

7. If yes, Please mention the linkage

CAN NOT PROVIDE as CONFIDENTIAL
8. What are the major challenges faced by the organization with respect to
recruitment and selection
-

Availability of talent pool

Retention of talent pool
Salary standards and high expectations

9. Mention the measures taken by the organization to address these challenges

- Campus interviews and tie ups
- Creation of Gurukul, a dedicated training institution for talent development and
replacement planning
45

Orientation
1. Does the organization have orientation programs for the new employees?
YES/ NO
2. If yes, please mention the length of the program for different cadres of
employees
Category
Managerial

Duration
One week

Staff

One week

GETs
Others ( pl. specify)

Three months

3. Does the organization link the orientation program with the overall business
strategy? YES/NO
4. If yes, please briefly explain
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Training and Development
1. Methods and procedures of assessing the training needs of employees
Training plays an important role in man-power development even at the level
of industrial unit.
Every organization needs to have well trained and experienced people to
perform the activities that have to be done.
Trainings are divided into two categories :
- Trainings with tangible benefits : These comprise mostly of technical
trainings and the results are tangible like increase in productivity.
- Trainings with intangible benefits : Actual returns cannot be fully
measured, the RoI could perhaps be estimated in terms of indicators
such as longer tenure; promotions to higher levels of responsibility and
cross transfers, and also the success of employees at these higher levels
of responsibility.
Identification of training needs:
- Self assessment by the employee.
- Training needs identified by the reporting officer as per the
performance appraisal process
2. Nomination policy for internal and external training programs
Monthly training calendar is prepared by HR and nominations are given by
respective head of departments as per the training need matrix prepared.
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3. Training facilities available in the organization

Special training facility, by the name of Gurukul , has been developed by the
organization. It takes care of all the technical trainings given to the
operators. Special model machines and simulators are used for the purpose.
These trainings are imparted by internal staff members.
4. Training days for different carders of employees as per the policy of the company
There is no written policy regarding the minimum number of training days.
However, it is as per the defined training calendar prepared as derived while
performing the appraisal process
5. Training budget for the last year
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6. The levels of evaluation and procedure adopted to evaluate training

Feedback form is given to the trainees and they rate:
- Contents of the training
- Knowledge of the trainer
- Communication skill of the trainer
Linkage or relevance of the training to present job
Duration of the training.
Pace of the training.
7. Does your organization link employee training to the overall business strategy?
YES / NO
As discussed earlier, the training matrix is made according to the business
objectives of the company.
8. What are the major challenges faced by the organization with respect to training
and development
After the training completion, a person is charged up for a few days, but as
he comes into the cycle of his routine chores, the enthusiasm dies and whole
training is washed out. This is a common phenomenon for all the trainings
conducted.
9. Mention the measures taken by the organization to address these challenges
To overcome this phenomenon the company has taken a new initiative. Each
training is now accompanied with a small project of 8 to 10 weeks which the
trainee has to do along with his daily chores. This helps in registering the
contents of the training into the minds of the trainees.
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Career Development and Performance Appraisal

1. Does the organization have a career planning for your employees?
YES /NO
2. If yes, please explain it briefly.
3. Does your organization link career development of employees to the overall
business strategy?
YES / NO
4. If yes, please explain in brief
CAN NOT PROVIDE as CONFIDENTIAL
5. What are the major challenges faced by the organization with respect to career
development
6. Mention the measures taken by the organization to address these challenges
7. Periodicity of performance appraisal: Once in a year/ twice a year/ others (please
specify)
Once in two years

8. Who does the appraisal; Immediate boss & head of the department/ any other
(please specify)
As per org structure, appraiser does the appraisal for appraise
9. Briefly describe the Method of appraisal
Supervisor-Subordinate appraisal
Bell Curve method for final evaluation
10. Applications of performance appraisal: a) promotions b) transfers c) training
needs
d) pay increase e)discipline f) others ( pl specify)
All the above
11. What are the major challenges faced by the organization with respect to
performance appraisal
Timely completion
Biased feedback
Subjective assessment
12. Mention the measures taken by the organization to address these challenges
Deadlines set for KRA deployment to performance appraisal
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Objective KRA setting

Default rating on non compliance
13. Does the organization have mentoring and coaching programs?

YES/NO

Yes
14. If yes. Please explain the process

15. Does the organization link these systems with overall business strategy?
/NO

YES

Yes
16. If yes, please explain the process in brief
CAN NOT PROVIDE as CONFIDENTIAL
Employee compensation
1. Methods of salary determination
Category
Method
Managerial
CAN NOT
Supervisory
CAN NOT
Associates and staff CAN NOT
Others
CAN NOT

PROVIDE
PROVIDE
PROVIDE
PROVIDE

as
as
as
as

CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL

2 Does the organization have the schemes of pay for performance? YES /NO
Yes
3. If yes, please give the details
It is a part of salary structure, paid depending on individual and companys
performance.
4. Salary Range or average cost to the company per annum
Category
Average
Managerial
CAN NOT
Supervisory
CAN NOT
Associates and staff CAN NOT
Others
CAN NOT

PROVIDE
PROVIDE
PROVIDE
PROVIDE

as
as
as
as

CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL

5. Please give the list of employee benefits

CAN NOT PROVIDE as CONFIDENTIAL
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6 Does the organization link the employee compensation system with overall business
strategy?
YES/NO
Yes
7. If yes, please briefly explain
CAN NOT PROVIDE as CONFIDENTIAL
8 What are the major challenges faced by the organization with respect to employee
compensation
- Uneven grading (Work Experience versus salary)
- Trade Union pressure
9 Mention the measures taken by the organization to address these challenges
-

Standard salary structure depending on education background, work experience

and achievements
Standard scale of pay for employees in the trade union

Employee Relations
1. Please mention major areas of employee grievances in your organization
Category
Manageria
l
Supervisor
y
Associates
and staff
Others

Areas of grievances
NA
NA
NA
Factory workers in Union Yes

2 Which category of employees raises more number of grievances?

Factory workers, those who are part of Trade union
3. Please briefly explain the procedure of redressing employee grievances in your
organization
As per HR policy on Employee relations management
4. Please mention the major nature of misconducts committed by employees
Category
Manageri
al
Superviso
ry
Associate
s and

Nature of misconduct
NA
NA
NA
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staff
Others
( pl.
specify )

Factory workers Strikes

5 Which category of employees involve in more incidents of misconducts?

Factory workers involved in trade union
6 Briefly explain how you manage employee discipline
Please mention
7. Extent of Unionization among employees
More than 40% of staff are in the union
8 What is the present rate of employee absenteeism?
Please mention
9. Please indicate the measures adopted to reduce the rate of absenteeism
Please mention
10. What is the present rate of employee quits?
Please mention
11 Please indicate the measures adopted by the organization for employee retention
Please mention
12. Does the organization have a practice of conducting exit interviews? YES/NO
Yes
13. Does the organization link the employee relations with overall business strategy?
YES/NO
Yes

14. If yes, please briefly mention

CAN NOT PROVIDE as CONFIDENTIAL
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Out sourcing of HR Services

1. Please mention the HR services that are outsourced by your organization
HR Service
Pay roll administration
Benefits
Risk Management

Agency
CAN NOT PROVIDE as
CONFIDENTIAL
CAN NOT PROVIDE as
CONFIDENTIAL
CAN NOT PROVIDE as
CONFIDENTIAL

Reasons

10.2 Does the organization provide HR services to other organizations? YES/NO

No
10.3 If yes, please give the details
Type of HR service
NA

Your client organization

NA

Any other pertinent information

Thank you for your time and valuable inputs

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