Dhanya Feel Hr Project

7/31/2019 Dhanya Feel Hr Project

1/16

FEEL HR PROJECT

MRF TYRES, Nettapakkam Commune,Puducherry

Project Report

Submitted by

DHANYA P

Register number: 11397111

DEPARTMENT OF MANAGEMENT STUDIES

SCHOOL OF MANAGEMENT

PONDICHERRY CENTRAL UNIVERSITY

KALAPET, PONDICHERRY.


2/16

Introduction

Organisation Profile:

Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing

company located in Chennai, Tamil Nadu, India. The name was later changed as

"Manorama Rubber Factory". MRF is mainly involved in making vehicle tyres. It is

India's largest tyre manufacturing company, and among the dozen largest worldwide.

It exports to more than 65 countries.MRF is the sister concern of the leading

malayalam daily "Malayala Manorama".The founder of the MRF, Mr.K.M.Mammen

Mappilai was the brother of late Mr.K.M.Mathew, ex-chief editor of "Malayala

Manorama"

Operations:

MRF operates six grant tyre manufacturing plants in India. Relevant ISO quality

certification has been awarded to all its tyre manufacturing plants. The company

manufactures the largest range of tyres in India-heavy duty truck/bus tyres, light

commercial vehicle tyres, passenger care tyres, off-road industrial tyres, two-wheeler

tyres, farm service tyres and motor-sport tyres to cater to every segment of the tyre

market. MRF is the only Indian company to put its expertise into the manufacture of

F3 tyres for the motor racing circuit. Maintenance of high quality standards and

constant innovation has become synonymous with the organization, giving all

products the unique status of highest brand preference in India for their superior

quality and performance.

MRF Tyres Logo:


3/16

History:

1946A young entrepreneur, K.M.Mammen Mappillai, opened a small toy balloon

manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).

1949

Although the factory was just a small shed without any machines, a variety of

products, ranging from balloons and latex-cast squeaking toys to industrial

gloves and contraceptives, were produced. During this time, MRF established

its first office at 334, Thambu Chetty Street, Madras (now Chennai), TamilNadu, India.

1952

MRF ventured into the manufacture of tread rubber. And with that, the first

machine, a rubber mill, was installed at the factory. This step into tread-rubber

manufacture, was later to catapult MRF into a league that few had imagined

possible.

1955MRF soon became the only Indian-owned unit to manufacture the superior

extruded, non-blooming and cushion-backed tread-rubber, enabling it to

compete with the MNC's operating in India at that time.

1956

By the close of 1956, MRF had become the market leader with a 50% share

of the tread-rubber market in India. So effective was MRF's hold on the

market, that the large multinationals had no other option but to withdraw fromthe tread rubber business in India.

1960

The Company was incorporated as a private limited company on 5 November.

The Company Manufacture automobile, aircraft, cycle tyres and tubes in

collaboration with the Mansfield Tire & Rubber Co., Mansfield, Ohio, U.S.A.

The tyres are sold under the trade name Mansfield Tyres (MRF). The

Company also produces other industrial products made of rubber likeconveyor belt, hoses etc. It took over the entire business of the Madras


4/16

Rubber Factory as a going concern as from 16 November, for a consideration

of Rs.25 Lakh.

1961

The Madras Rubber Factory Private Limited was converted into a publiccompany on 1 April, and additional capital was issued in order to start the

manufacture of automobile tyres and tubes in collaboration with the Mansfield

Tire & Rubber Co., Mansfield, Ohio, U.S.A. The Company was given

permission to export tyres having Mansfield trade mark to all world markets

except U.S.A. and Canada. : 2,49,650 shares allotted without payment in

cash. 350 shares subscribed for by the signatories to the Memorandum of

Association. 2,50,000 shares reserved and allotted directors. 5,00,000 shares

issued to public in April 1961. The balance 2,50,000 shares allotted to

collaborators as payment for machinery.

1962

The main plant for production of tyres and tubes were commissioned on 4

December.

1964

With the commissioning of the main plant in 1964, MRF also made progress

in the export of tyres. An overseas office at Beirut(Lebanon) was established

to develop the export market, and it was amongst India's very first efforts. This

year also marked the birth of the now famous MRF Muscleman.

1967

MRF became the first Indian company to export tyres to USA - the very

birthplace of tyre technology.

1973

MRF scored a major breakthrough by being among the very first in India to

manufacture and market Nylon tyres.

1978

The Company finalised technical know-how collaboration with B.F. Goodrich

Co., U.S.A., which became fully operative in early 1980-81.This agreement

was revalidated for further five years.


5/16

1979

The Mansfield Tire & Rubber Co., U.S.A. offered for sale out of its holding

3,74,250 No. of Equity shares of Rs 10 each of the Company at a premium ofRs 4 each as follows: 3,63,786 shares as rights to the existing shareholders in

the proportion 1:8 and 10,464 shares to the employees of the Company.

1980

The Company crossed several milestones in its history. It went into technical

collaboration with BF Goodrich Tire Co., USA in the year. The name of the

Company, Madras Rubber Factory Ltd. was changed to MRF Ltd in the year.

1984Sales crossed INR two billion. MRF tyres were the first tyres selected for

fitment onto the Maruti Suzuki 800 - India's first small, modern car.

1988

The MRF Pace Foundation was set up, with international pace bowler, Dennis

Lillee as its Director. Not long thereafter, pace bowlers trained at the

Foundation were selected for the Indian Cricket Team.

1989The Company was identified as `Star Exporter', a status that enables the

company to get priority treatment in several areas concerned with Customs,

RBI, etc. Aero tyre division of B.F. Goodrich Co., USA was taken over by

Michelin Cie of France.

1995

The Company has received the Top Export Award for the year from All IndiaRubber Industries Association.

1996

The Company has received an award from CAPEXIL - Certificate of Merit

based on the export performance for the year.

The Far Eastern Economic Review Award was presented to MRF for the

fourth year in succession in recognition of excellence.


6/16

1997

MRF Ltd has been assigned a credit rating of `PR1+' (superior) for its

proposed Rs 100 crore commercial paper (CP) programme by Credit Analysis

and Research Ltd (CARE).MRF is setting up a new plant in Pondicherry forthe production of radial tyres.The company set up the Arokkan plant in

Chennai to produce bicycle tyres and tubes.MRF began manufacturing tyres

and tubes in technical collaboration with Mansfield Tire and Rubber Company,

USA.MRF has launched Nylogrip Zapper, a high performance tyre for new

generation bikes. The company tied up with Uniroyal Goodrich Tire Co. of

USA, a subsidiary of the French Tyre giant Michelin, which held 9.8 percent

stake in the company.

1998

MRF Tyres has signed an OEM (original equipment manufacturer) alliance

with Siel Honda Motors and Hindustan Motors.MRF has launched a market

sampling operation for the MRF Zigma.

2003

MRF and Bridgestone are ranked highest in a tie for the second year in a row

in customer satisfaction with original tries according to JD Power Asia Pacific.

Shri K.M. Mammen Mappillai, Chairman and Managing Director on March

2nd.Mr. C.D.Khanna has ceased to be the Director of the company. And Mr.

K.S.Narayanan has resigned from the board of MRF.Mr. N.Kumar and Mr.

Ranjit Issac Jesudasen has been appointed as the directors of the

company.Mr. K.S.Narayanan ceased to be director of the Company with effect

from April 17, 2003, consequent to his resignation from the Board

ofDirectors.MRF Ltd. has informed the Exchange that at its meeting held on

December 19, 2003 the BOD have re-designated Jt. Managing Director Mr.

Arun Mammen as Managing Director of the Company w.e.f April 1, 2004.

2004

MRF Ltd. has informed that Mr. Ravi Mannath has been appointed as

Additional Company Secretary of the Company w.e.f. January 5, 2004.


7/16

2011

MRF Ltd inaugurated its 7th manufacturing facility at Ankanpally near

Hyderabad, exclusively for radial tyres.

MRF Ltd crosses gross revenue mark of 10,000 crores.

Industry Structure & Development:

The Indian tyre industry is valued at approximately Rs. 25000 crore per annum, with

only around Rs. 3000 crore estimated to be the value of exports. There are 39 tyre

companies which operate a total of 60 factories located all over India. In fact 10

major tyre companies account for 88% of the tyre business in the country.

Originally, bias tyres were made but this scenario is changing with radicalisation

levels having risen to 98% for passenger car tyres, 18% in the case of light

commercial vehicle and 12% in the heavy commercial vehicle segment. Roughly

55% tyres are sold in there placement market, followed by 30% sold to OEMs

directly - the remaining is exported.

Tyre companies in the past few years have built up a network of dealers, depots and

other outlets which now cover the entire country.

While it was earlier thought that foreign auto manufacturers would import tyres, it is

now clear that foreign manufacturers are opting for Indian tyres for the domestic

market as these tyres are better suited for the Indian conditions.

In the heavy commercial vehicle segment, Tata Motors and Ashok Leyland lead, with

Volvo, Eicher Motors, Force Motors, Asia Motor Works, Mercedes-Benz, etc. having

entered the market only recently.

Although statistically the segment-wise production change was high in 2009-10 over

the previous year - heavy commercial vehicles by 98%, light commercial vehicles by

36%,passenger cars by 36%, utility vehicles by 33%, motorcycles by 33%, scooters

by 43%, auto by 40%, tractor by 32% - the percentage growth should not be

considered significant as the2008-09 figures largely reflect recession numbers.

Values:

Customers: we will be responsive to the needs of our customers


8/16

Learning: we will continuously improve our service innovatively &

expeditiously

People: we will trust & respect our employee

Community & Partners: we will be transparent & sensitive in our dealing withall stake holders.

Mission:

MRFs mission statement is as follows:

We will meet global standards of the tyre industry that delights customers through

customer service, focus, empowered employees, innovative service and cost

efficiency.

Vision:

MRF will be a significant Global player delighting customers worldwide through

Leadership in Technology

Excellence in Manufacturing

World class system

Driven by a team of motivated high performers, to achieve profitable growth.

Awards and achievement:

TNS MRF voted the Most trusted Tyre company in India by TNS 2006

global CSR study

J D Power Asia Pacific MRF won the award for customer satisfaction not

once but 6 times in the last 7 year

CAPEXIL MRF won the award for exports

Human Resource Development

HR Department:

Human Resource Managementhas come to be recognized as an inherent part of

management, which is concerned with thehuman resourcesof an organization. Its

objective is the maintenance of better human relations in the organization by the

development, application and evaluation of policies, procedures and programmes


9/16

relating tohuman resourcesto optimize their contribution towards the realization of

organizational objectives.

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

people. It is an integral but distinctive part of management, concerned with people at

work and their relationships within the enterprise. HRM helps in attaining maximum

individual development, desirable working relationship between employees and

employers, employees and employees, and effective modelling ofhuman

resourcesas contrasted with physical resources. It is the recruitment, selection,

development, utilization, compensation and motivation ofhuman resourcesby the

organization.

Functions of the HR

Recruitment and selection of employees

Training and development

Industrial Relations

Welfare

Performance Appraisal

Structure of the Human Recourse Department:

Selection and Recruitment Process:

The recruitment and selection is the major function of the human resource

department and recruitment process is the first step towards creating the competitive

strength and the strategic advantage for the organisations. Recruitment process

involves a systematic procedure from sourcing the candidates to arranging and

Plant head

Officer HR Welfare

Officer

Senior

Officer

Training

Time Officer


10/16

conducting the interviews and requires many resources and time. A general

recruitment process for workmen follows

yes

no

no

Training and Development:

The Principle objective of training and development division is to make sure

that the availability of skilled and willing workforce to an organization. In addition to

that, there are four other objectives: Individual, Organisation, functional and societal.

Individual: helps employee in achieving their personal goals, which in turn

enhances the individual contribution to an organisation

Selection Process

AdvertisementCampus

Interview

Employment

exchange

Contract

Workman

Data Bank References

Scrutinizing

Criteria/Physical Verification such as Ht, Wt,

age, education etc.

Sending Call

letter

Written Test

50 marks

Personnel

Interview

Criteria 25

marksPsychometric and

Psychological tests

PDT Test

Recruited


11/16

Organisation: assist the organisation with the primary objective by bringing

individual effectiveness.

Functional: maintain the departments contribution at a level suitable to the

organisations need

Societal: ensure that the organisation is ethically and socially responsible to the

needs and challenges of the society

Different types of training are given to their workmen like

Workmen training

Staff training

Process training

Behavioural training

Workmen training: To develop the belongingness to the equipment and workplaceand sense of pride/ownership. It dwells on understanding, appreciation, coordination

& cooperation between different support groups (production & maintenance)

ultimately improving productivity.

Staff training: This training is given at the head office which focuses on the objective

of their job. The time period for this session is 45 days.

Process training:This program develops the attitude of "Safety First" - Personal andworkplace Safety. How to identify Hazards & Risks in our activities, not only in work

place but also in personal life and how can we make our life safe by prevention or

control.

Behavioural Training:Motivational session on Habits. How to develop basic hygienehabits and how it is important for personal & family health. It also highlights the cost

of bad habits.

Time Office:

Following things are maintained by the Time Office

Attendance

Prepare reports such as absenteeism, late coming etc.


12/16

Over Time related work.

Prepare all resistors regarding all labour laws such as accident registers, lime

wash registers, deduction registers, damage registers, fine registers etc.

Leave management EL, CL, SL Submit all returns regarding labour laws.

Prepare salary.

Legal compliance.

Rectify employees grievances.

Control absenteeism, late coming, early going etc.

Maintain employee records their personal files etc.

Maintain employee database. Work related to ESI, PF, gratuity, bonus etc.

Arrange Manpower.

Performance Appraisal:

People differ in their abilities and their aptitudes. There is always some difference

between the quality and quantity of the same work on the same job being done by

two different people. Performance appraisals of Employeesare necessary tounderstand each employees abilities, competencies and relative merit and worth for

the organization. Performance appraisal rates the employees in terms of their

performance. At MRF performance appraisals are given to both the administration as

well as to the development team. Stipends are issued at the training period for the

workmen.

Wages and Allowances:

Wages of workmen are fixed based on the long term agreement. It is paid to the

workmen based on the work done on each day as piece rate system. The work done

on each day is recorded in work sheets and accordingly their wages are calculated.

The workmen are provided dearness allowances, fringe benefits, bonuses and other

payments according to the rules and regulations of the company.


13/16

Canteen:

The Canteen is also run under the Human recourse Department. Quality food thrice

a day with snacks and tea are provided to employees at subsidized rates. The

company has appointed a qualified supervisor to monitor and control the activities of

the canteen. There is also a general committee comprising of management

representatives and the union representatives to decide on frequent menu change

and to maintain the standard of food. The canteen has good housekeeping staff to

keep the canteen in good conditions

Welfare:

Labour welfare aims at providing the physical, psychological and general wellbeing

of the working population. Labour welfare is carried out by the Welfare Officer, who

takes care of the physical and general wellbeing of the employees. The functions of

the Welfare Officer are:

To maintain a harmonious relation between the factory management and

workers by establishing contact and holding consultations.

To study and understand the problems of labour at workplace in order to help

factory management to shape and formulate labour policies and to interpret

the policies to workers in their language.

To advice on provisions of welfare facilities such as housing, foodstuff,

recreation facilities etc

To notify the grievance of the workers to the management and act as a liaison

between the management and labour

To watch industrial relations and act as a mediator in an event of a dispute

arising between factory management and workers and help to bring about a

settlement by persuasive efforts.

Industrial Relations

The company has very cordial industrial relations. The two trade unions of the

company are:


14/16

1. MRF Employees Union: INTUC

2. MRF Employees Union: CITU

The trade union consists of an organization. They also have a level of hierarchy in th

eorganization. The local leaders of the trade unions are the Secretary,

Treasurer and Convener. The external leader comprises of President, Vice

President and General Secretary. The workmen category of MRF is controlled by

a long term agreement every three years. Negotiations and conciliation

between management and workmen are made over the table through

continued discussions. This is mainly organized by the HR department with the

help of industrial engineer sand other departments involve

Outsourcing:

The changing trend of any management is to concentrate more on core jobs and

leave the fringe and peripheral jobs on job contracts. But being the principal

employer MRF sees to it that statutory requirements are strictly adhered to.

Exit Interview:

Exit interviews are conducted by the unit HRs for those who resigns their job. This is

made to understand the employees attitude towards work and to reduce attrition.

This is either conducted through interview or through questionnaire.

Conclusion:

When the industrial world was reeling under recession and many Indian

industries were slowly recovering, the Company has recorded a landmark

achievement of business growth and sales volume through its human assets. The

Company continued to be a preferred employer and was able to retain talent and

also attract good talent. Strategically working with the line functions and making

critical hiring decisions, the Company was able to meet the staffing requirements

aligning with the business strategy of the Company.


15/16

It was a significant year for learning and development in MRF. During the period,

need based training programs were conducted for executives and operatives. The

emphasis for executive development program was more on managerial skills,

development and driving change. Inputs on leadership style and people skills were

also given with the focus to lead the organization in the future. The training for the

operatives was focussed on knowledge and skills to achieve higher levels of

performance during the period of rapid change and growth.

The induction training program for newly recruited supervisors and engineers was

refurbished to cover general induction, technical training and supervisory skills. This

will enable the new recruits to understand the basics of functional stream and

acquire people skills to inspire the workforce.

Industrial relations across plants were generally harmonious and cordial. Though the

Company resolved most labour issues through continued efforts of mutual

consultation and negotiations, there were few work stoppages limited to short period

in a few plants during the year.

TPM (Total Productive Maintenance) initiatives, which started in the year

2004continues to be a way of life in MRF units and the benefit, are being reapedthrough better utilization and productivity. Large number of Kaizens was generated

from employees which were evaluated for implementation during the year.

There was continuous improvement made in using SAP. Many customized solutions

were developed for using specific features of SAP.

Interview with HR:

Me: Do the HR courses taught as a part of MBA really help to do a HR professionalsjob effectively?

HR: Class room learnings are different from what we experience at the corporate.

But the theoretical knowledge and formulas learnt in the classroom are always an

asset at work.

Me: For those of us who are aspiring to become a HR, what are the skill-sets and

critical abilities required?


16/16

HR: Listening skills is very important for a HR. Especially in a state like Tamilnadu

where there are more Labour unions. Labours have more power.

Me: How does HR professional career growth happen?

HR: HR has always got very high scope, as long as employees and workers are

replaced by machines which will never happen.

Me: I heard that by 2015 more number of women will enter to the top management

position at corporate? What do you think about it? Is it a threat to men doing HR

course?

HR: Women entering into management position may happen in IT sector. But I think

it will take more time for them to enter into manufacturing sector. Survival of the

Fittest, the best men or women will survive.

Documents

Dhanya Feel Hr Project