RECRUITMENT STRATEGY FOR PARLE-GA Report Submitted to IIMT, Greater Noida as a partial fulfillment of Full time Post Graduate Diploma in Human Resource Management (2009-2011)

Submitted to: Dr.D.K.Garg, Chairman, IIMT, Gr. Noida

Submitted by: Reena Devi ENR No- HRR 3043 Batch 15th,PGD(HR)

Ishan Institute of Management and Technology 1A, Knowledge Park- I, Greater Noida, Distt. G. B. Nagar (U. P.)Website: www.ishanfamily.com, Email: ishan_corporate@yahoo.com

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PREFACEAs a student of management, apart from theoretical studies we need to get a deeper insight into the practical aspects of those theories by working as a part of organization during our summer training. Training is a period in which a student can apply his theoretical knowledge in practical field. Basically practical knowledge and theoretical knowledge have a very broad difference. So this training has high importance as to know, how both the aspects are applied together. The study of management acquires most crucial position in the business administration. In order to be successful, it is necessary to give priority to the management in an organization. But it cant be denied that the study of management would be more educational, materialistic and even more interesting, if it is to be paired with the work in organization as an employee. The training session helps to get details about the working process in the organization. It has helped me to know about the organizational management and discipline, which has its own importance. The training is going to be a lifelong experience. Management in India is heading towards a better profession as compared to other professions. The demand for professional managers is increasing day by day. To achieve profession competence, manager ought to be fully occupied with theory and practical exp osure of management. A comprehensive understanding of the principle will increases their decisionmaking ability and sharpens their tools for this purpose. During the curriculum of management programmers a student has to attain a practical exposure of an organization on live project in addition to his/her theoretical studies. This report is about the practical training done at PARLE-G PVT LTD during the curriculum of PGDHR from IIMT, Greater Noida. human Resource Management is an approach to the man agement of people. It is the most important asset an organization has and their effective management is the key to its success. This success is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with and make a major contribution to the achievement of corporate objectives and strategic plans. The corporate culture and the values, organizational climate and managerial behaviour that emanate from that culture will exert a major influence on the achievement of excellence. Human Resource Management is concerned with integration getting all members of the organizations involved and working together with a sense of common purpose. Human Resource Management functions have undergone tremendous change over thepast 20-30 years. Many years ago, large organizations looked to the personnel department, mostly to manage the paper work around hiring and paying people. More recently, organizations consider the Human Resource Departments as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. The human resource management function includes a variety of activities which include managing the approach to employee benefits and compensation, employees records and personnel policies. As training and development is one of the major functions of Human Resource Department, every organization should give importance for meeting the requirements of ever c hallenging needs of its employees in nurturing a work-life balance and achieving the corporations mission

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In todays sea-change world, improving business performance is a journey, not a destination. A business performance rises and falls with the ebb and flow of human performance. HR professionals search for ways to enhance the effectiveness of employees in their jobs and prepare them for tomorrow. Organizations and individuals should develop and progress simultaneously for their survival and attainment of mutual progress. Every organization should consider employees as the most precious asset, and it should aim to provide a conductive environment, a good working condition, job satisfaction and career advancement so as to create a well knit team to meet the challenges.

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CERTIFICATETO WHOM IT MAY CONCERNThis is to certify that the project work done on RECRUITMENT STRATEGY FOR PARLE-G submitted to Ishan Institute of Management and Technology, Greate r Noida by Miss REENA DEVI in partial fulfilment of the requirement for PG Diploma In Human Resource is a bonafide work carried out by her under my supervision and guidance. This project report is the original one and has not been submitted anywhere else for any other degree or diploma.

Date:

Seal or Stamp of the guide

Name of the guide: Address:

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ACKNOWLEDGEMENT The satisfaction that accomplishes the successful completion of any work is when we say thank you to the people who made it possible, whose constant encouragement and guidance has been a source of inspiration throughout the course of the training. At the outset, I would like to express sincere and deep felt thanks to the Management of Human Resource Department, PARLE-G PVT LTD for providing me an opportunity to undergo six weeks of training at BAHADURGARH, HARYANA. I also express my deep senses of gratitude to my training guide Mr surendra kumar , (Human Resource Department) under whose expert guidance and immense cooperation it could be possible to study and submit a project report Recruitment strategy for parle-g. I would like to dedicate this work to my revered institute IIMT, Greater Noida where I am getting the shape of future business manager. I express my sincere gratitude to honourable Dr. D.K. GARG (Chairman) of IIMT, Greater Noida for their support and guidance on the ground of which I have acquired a new field of knowledge. I take opportunity to express my heartiest gratitude to my respective faculty lecturers, parents and friends who have been constantly helping me in successful completion of the project.

Date:

REENA DEVI ENR No. HRR 3043

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DECLARATION The summer training project on title RECRUITMENT STRATEGY FOR PARLE G under the guidance of Mr. Arun Divakar is the original work done by me. This is the property of the institute and use of this report without prior permission of the Institute will be considered illegal and actionable.

Date:

Signature:

REENA DEVI ENR. No. HRR 3043

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EXECUTIVE SUMMARYParle Biscuits Limited is a subsidiary of the Parle Products Limited, Mumbai, which is a closely held company run by the Chauhans. Today Parle enjoys a 40% share of the total biscuit market and 15% share of the total confectionery market in India. Plants of Parle Biscuits Pvt Ltd are at: Bahadurgarh (Haryana) Neemrana (Rajasthan) Rudrapur (Uttranchal) Nasik The plant also has a Auditorium and viewing gallery, which is used during the visits of the school children. A retail shop at the plant provides Parle products at MRP rates. The total turnover of Parle Biscuits Pvt Ltd is around 4000 crores. All Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials; packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment. All these factories are located at strategic locations, to ensure a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic printing & packaging facilities. Parle-G has been a strong household name across India. The great taste, high nutrition, and the international quality, makesParle-G a winner. No wonder, it's the undisputed leader in the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy. Because of this, Parle-G is the world's largest selling brand of biscuits. Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle Glucose Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs. Various HR TECHNIQUES ADOPTED AT PARLE. 5S ,KAIZENS ,SQC ,TQM ,POKA-YOKE The company has effectively implemented the HR techniques in the plant. The workers and employees are well aware of the concepts of these techniques. The HACCP applied in the plant is working in its most effective manner. The wastage in the plant is least and the production team and the workers try their level best to reduce it even more. The wastage of the biscuits that fall on the floor is minimized by the use of trays under the machines. Recruitment can be described as the set of activities and processes used to legally obtain a sufficient number of qualified people at the right place and time so that the people and the organisation can select each other in their own best short and long term interests.1 In other words, the recruitment process provides the organisation with a pool of potentially qualified job candidates from which judicious selection can be made to fill vacancies. Successful recruitment begins with proper employment planning and forecasting. In this phase of the staffing process, an organisation formulates plans to fill or eliminate future job openings based on an analysis of future needs, the talent available within and outside of the organisation, and the current and anticipated resources that can be expended to attract and retain such talent.

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Specifically, the purposes are to: To recruit the suitable candidate for the required position with the required skills. Motivate them every now and then so that stress can be eliminated. To sustain good performance of employees throughout their careers by exploiting their full potential. To provide opportunities to executives to fulfil their career aspirations through various activities such as COLORS. To ensure that the managerial resources of the organisation are utilised optimally.

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TABLE OF CONTENTSSL.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 CHAPTER PREFACE CERTIFICATE ACKNOWLEDGEMENT DECLARATION EXECUTIVE SUMMARY OBJECTIVE CHAPTER 1. INDUSTRY PROFILE CHAPTER 1.1. BISUIT INDUSTRY IN INDIA CHAPTER STATISTCS 1.2. BUISCUIT PAGE NO. 2-3 4 5 6 7-11 12 13 13-14

INDUSTRY 14-15 15-16 17 17-20 20 20-21 21-23 23 24-25 26 26 26 27-29 30-33

CHAPTER 1.3. SWOT ANALYIS CHAPTER 2 COMPANY PROFILE CHAPTER 2.5. HISTORICAL BACKGROUND CHAPTER 2.6. VISION/MISSION CHAPTER 2.7. PARLE VS COMPETITORS CHAPTER 2.8.PARLE PRODUCTS CHAPTER 2.9. QUALITY COMMITMENT CHAPTER 2.10 SCOPE IN PARLE-G CHAPTER 3.. HR STRATEGY CHAPTER 3.2. HR TECNIQUESCHAPTER 3.3. 5S CHAPTER 3.4. TQM,KAIZEN CHAPTER 3.5 SQC

CHAPTER 3.6. PAKA-YOKE, RECRUITMENT 34-40 9

FLOW CHART 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 CHAPTER 4.RECRUITMENT STRATEGY CHAPTER 4.1 OBJECTIVE CHAPTER 4.1. EQUAL OPPORTUNITY CHAPTER 4.2. ESTIMATION OF MANPOWER 40 40 40-44 45

CHAPTER4.3 REQRUITMENT REQUEST FORM 46 CHAPTER 4.4. ROLES OF VARIOUS PLAYERS 46-47 IN RECRUITMENT CHAPTER 5. JOB ANALYSIS AT PARLE -G CHAPTER 5.1JOB DESCRIPTION CHAPTER 5.2 PERSON SPECIFICATION CHAPTER -6 SOURCES OF RECRUITMENT CHAPTER 6.1. INTERNAL RECRUITMENT CHAPTER 6.1.1 REFFERAL PROGRAMMES CHAPTER 6.1.2PROMOTION,TRNSFERS,ROTATION CHAPTER 6.2 EXTERNAL SOURCES CHAPTER 6.2.1 ADVERTISING AGENCY CHAPTER 6.2.2 CAMPUS RECRUITMENT CHAPTER 6.2.3 JOB FAIRS CHAPTER 6.2.4 CONSULTANT CHAPTER 6.2.5 MEDIA CHAPTER 7 SCREENING CHAPTER 7.1 INTERVIEW CHAPTER 7.2 REFREE REPORTS CHAPTER 7.3 FAO ENTRANCE TEST CHAPTER 7.4 PSYCHOMETRIC TEST 10 49 50 57 63-66 66 66 70 73 74-78 78-88 89-90 90-93 93-99 99-101 101-112 112 113-116 116-130

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CHAPTER 8 STRATEGY TO CONTROL COST 131-132 OF RECRUIMENT CHAPTER 8.2 RECENT FINDINGS INCREASE THE EFFECTIVENESS RECRUITMENT TO 132-138 OF 138-`140 140-141 141-142 142 142-145

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CHAPTER 8.3 BEST SELECTION PRACTICES 9.SLA(SERVICE LEVEL AGREEMENT) SLA IN PARLE-G CHAPTER 10-JOINING 10.2 INDUCTION

10.3 LEADING MANAGING AND RETAINING 142EMPLOYEES CHAPTER 11.BUDGET PREPARATION CHAPTER.12 FINDINGS CONCLUSION SUGGESTIONS LIMITATIONS 153-154 155 156 157 158

56 57 58 59 60

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BIBLIOGRAPHY159

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OBJECTIVE OF THE STUDYThe main aim of my study was to formulate the recruitment strategy for parle-pvt ltd.first I had to know the recruitment that is being in the process there in the company and then acoordingly I had to modify that ,do alterations in that and frame a detailed recruitment strategy which they can follow whenever they are about to make recruitment in the company. The objective of the study is to study about the Recrutiment processes of the company,how it is conducted in the company? To understand the various functions, practices and process, policies and its execution by the HR department the company. To critically examine the various functions and processes and give the recommendations accordingly. To know the organisational culture. To know about the different methods of selection To know how they are managing ang satisfying the contract employees which are hired there for the production purpose as they are not from the organization,and company had not directly contacted them during their selection for the job. So the various motivational techniques also I had to study.

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CHAPTET 1

INDUSTRY PROFILEINTRODUCTIONFast moving consumer goods (FMCG), are products that are sold quickly at relatively low cost, have a quick turnover and get replaced within a year. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergent, as well as non durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG also includes pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. Parle-g is also one of the few FMCG brands in the country, whose customers straddle across income segments.2 Biscuit

Industry In India:

The world biscuit is derived from the French word meaning twice cooked. This lengthy cooking, processing derived out biscuits so that they well before the days of airtight containers. Today shops offer a vast range of well-flavored biscuits in eyecatching packets but few can compete with the flavors, texture and aroma of the freshly backed variety. Biscuit may be defined as a product based on cereals (more than 60% of its weight) and contains less than 2.5 % moisture and has undergone several processing such as mixing, dough development, Cutting etc. and finally backed in an oven at a suitable temperature. India Biscuits Industry is the largest among all the food industries and has a turnover of around Rs.3000 Crores. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stands at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production. India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products. 13

The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total production of bakery and above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits. The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully. 2.1

Biscuit industry statistics

1. Annual Growth: The biscuit industry in India witnessed annual growth as below:2003-04 15% 2004-05 14% 2005-06 14% 2006-07 13% 2007-08 15% 2008-09 17% (Aug nov)While the growth rate has been stagnating during last 4 years, it has picked up momentum during the 2008-09 and the first quarter of 2009-10 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to Rs.100/per kg, as per Union Budget for 2008-09. Indian Biscuit Manufacturers Association (IBMA), instrumental in obtaining the excise duty exemption, estimates annual growth of around 20% in the year 2008-09. Growth in biscuit marketing has been achieved also due to improvement in rural market penetration. 2. Annual Production: The organized biscuit manufacturing industrys annual product ion figures are given below: (In Lakh Metric Tonnes) 2004-05 11.00 2005-06 12.54 2006-07 14.29 2007-08 16.14 2008-09 17.14 Segments : The organized and unorganized sectors of the biscuit industry is in the proportion Of 60%:40% ratio.

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EXPORTS of Biscuit is estimated to be around 15% of the annual production during the year 2009-10. IMPORTS of biscuits into India has not shown any significant growth during the last two years and has not affected production/sales by the Indian Biscuit industry . 3. Rural-urban penetration of Biscuit: Urban Market :75% to 85% Rural Market : 50% to 65% Marketing : Wholesale and Retail marketing in the Biscuit industry is carried out with a network of C & F Agencies (for States and specific Districts),Dealers/Wholesalers and Retail shops.

HIKE IN COST OF PRDUCTION : Biscuit Industry especially the Small & Medium Sector, consisting of around 150 units are facing erosion in their profitability and competitive capability, due to :a) Steep hike in cost of production on account of increase in prices of major raw materials, i.e. Wheat Flour Veg. Oil, Sugar, Milk, Packaging Materials, Fuel. Wages,etc.Recent increase in prices of Petrol/Diesel in aug 2009 has further resulted n cost push. Detailed Comparative Chart showing adverse impact on Biscuit Industry is given below: 4. HIKE IN PRICES OF RAW MATERIALS S.NO 1 2 3 4 5 6 7 8 9 Raw Martial Maida Sugar Parmoline Oil S.M.P Butter Laminate F.O HM Bag Carbon Box Per Kg aug 09 12.23 15.09 52.99 122.00 118.94 200.00 26.63 91.92 25.00 dec 09 12.00 16.00 57.00 127.00 130.00 230.00 35.00 105.00 28.00

2.3 SWOT analysis of parle-gTHE STRENGTH OF PARLE BRAND Over the years, Parle has grown to become a multi-million us Dollar Company. Many of Parle products-biscuits or confectionaries, are market leaders in their category and have won acclaim at the monde selection, since1971. Today, Parle enjoys a 40% share of the total biscuit market and a15% share of the total confectionary market, in India. The parle biscuit brand, such as Parle-G, Monaco 15

& krackjack and confectionary brands, such as, Melody, Poppins, Mango bite & kismi, enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health & great taste. And yet, we know that constantly innvoting and catering to new tastes have built this reputation. This can be seen by the success of new brands, such as hide &seek, or the single twist wrapping of mango bite. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the parle brand grows from strength to strength.

ESTABLISHED BRAND NAME WIDESPREAD DISTRIBUTION NETORK FOCUS ON RURAL MARKETSUPERIOR TECHNOLOGY WORLD CLASS FACTORIES RESEARCH AND DEVELOPMENT DEPARTMENT

WEAKNESSEShigh overhead cost vis a vis competition from britania and priya gold

Opportunitiesy

y y y y y

Indian Biscuit Manufacturers Association (IBMA) estimates annual growth of around 20% in next couple of years. The $220 Billion food industry is expected to grow to $300 Billion by 2015. Per capita consumption of Biscuits in the country is only 1.8 kg as compared to 2.5 kg to 5.5 kg in South East Asian countries and European countries, and 7.5 kg in USA. Growing demand of Sugar free cream crackers & diet biscuits Opportunity to further grown in Urban & Rural market; Current penetration levels are: Urban Market : 75% to 85% Rural Market : 50% to 65%

Threats:Fluctuations in the prices of transportation costs & distribution cost due to high wedges and oil prices - Entry of ITC (having very good distribution channels) in to biscuit industryy

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CHAPTER -2

PARLE-G

Initially a small factory was set up in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called Parle Products, survived and succeeded, by adhering to high quality and improvising from time to time. A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality. For around 75 years, Parle have been manufacturing quality biscuits and confectionery products. Over the years Parle has grown to become a multi milliondollar company with many of the products as market leaders in their category. The recent introduction of Hide & Seek chocolate chip biscuits is a product of innovation and caters to a new taste, being Indias first ever chocolate-chip biscuits. All Parle products are manufactured under most hygienic conditions. Great care is exercised in the selection and quality control of raw material and standards ensured at every stage of the manufacturing process. Parle Products has 4 manufacturing units for biscuits and confectionaries at Mumbai Haryana, Rajasthan and Karnataka. It also has 14 manufacturing units for biscuits & manufacturing units for confectioneries, on contract. 17

All these factories are located at strategic locations, so as to ensure a constant output & easy distribution. Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The marketing mix of Parle for this project has been studied from the point of view of Parle biscuits; mainly Parle-G and Parle hide & seek. PARLE G - THE EVOLUTION !!! Parle-G has been a strong household name across India. The great taste, high nutrition, and the international quality, makesParle-G a winner. No wonder, it's the undisputed leader in the biscuit category for decades. Parle-G is consumed by people of all ages, from the rich to the poor, living in cities & in villages. While some have it for breakfast, for others it is a complete wholesome meal. For some it's the best accompaniment for chai, while for some it's a way of getting charged whenever they are low on energy. Because of this, Parle-G is the world's largest selling brand of biscuits. Launched in the year 1939, it was one of the first brands of Parle Products. It was called Parle Glucose Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs. The incredible demand led Parle to introduce the brand in special branded packs and in larger festive tin packs. By the year 1949, Parle Glucose biscuits were available not just in Mumbai but also across the state. It was also sold in parts of North India. The early 50s produced over 150 tones of biscuits produced in the Mumbai factory. Looking at the success of Parle-G, a lot of other me-too brands were introduced in the market. And these brands had names that were similar to Parle Glucose Biscuits so that if not by anything else, the consumer would err in picking the brand. This forced Parle to change the name from Parle Glucose Biscuits to Parle-G. Regular customers would have noticed the number of biscuits in a pack come down from 16 to 15 even as each biscuit became lighter, but they seemed to understand the cost pressures on the firm. The gamble paid off: Parle was able to sustain its volumes. Strict cost control at every point in its supply chain also helped -- Parle entered into forward contracts with suppliers, outsourced production, increased the number of manufacturing locations to 60 and consolidated buying. Raw material costs account for 60 per cent of the total costs in this segment and packaging costs (plastic films) account for 20-25 per cent of this.

PRODUCTION HISTORY: The Company has started new plant in bhadurgarh. Construction of the plant was started in 2000. This plant has a capacity of 480 tons per day and manpower of 647(CONTRACT BASED), 193 ROLE 65 STAFF contributed to the company much and is surviving in Rajasthan.

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Originally packed in the wax paper pack, today it is available in a contemporary, premium BOPP pack with attractive side fins. The airtight pack helps to keep the biscuits fresh and tastier for a longer period. Parle-G was the only biscuit brand that was always in short supply. It was heading towards becoming an all-time great brand of biscuit. Parle-G started being advertised in the 80's. It was advertised mainly through press ads. The communication spoke about the basic benefits of energy and nutrition. In 1989, ParleG released its Dadaji commercial, which went on to become one of the most popular commercials for Parle-G. The commercial was run for a period of 6 years. Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number of consumers. It became a part of the daily lives of many Indians. It wasn't a biscuit any more. It had become anicon. The next level of communication associated the brand with the positive values of life like honesty, sharing and caring. In the year 1997, Parle-G sponsored the tele-serial of the Indian superhero, Shaktimaan that went on to become a huge success. The personality of the superhero matched the overall superb benefits of the brand. Parle extended this association with Shaktimaan and gave away a lotof merchandise of Shaktimaan, which was supported by POS and press communication. The children just could not get enough of Parle-G and Shaktimaan.In the year 2002, it was decided to bring the brand closer to the child t's a brand that has held its price line at Rs 4 for 25 years now -- the price was last raised in 1994 by 25 paise. So, it's not for nothing that Parle-G is the world's largest-selling biscuit by volumes. Not that the company didn't try to raise prices to offset the overall hike in costs. Three years ago it did so, but quickly rolled it back after volumes fell sharply and consumers wrote to lodge their protest. We want to cater to the masses and have consciously tried not to increase the price. Parle-G is available for Rs 50 a kg. There are very few food items that are available for Rs 50-60 a kg," says Pravin Kulkarni, general manager (marketing), Parle Products. Parle is, of course, not doing it for charity. Soaring input prices meant it opted for reducing the weight of the biscuit than increasing the price -- first from 100 gm to 92.5 gm in January 2008, and then to 88 gm in January this year -- in line with other biscuit-makers and FMCG players. Regular customers would have noticed the number of biscuits in a pack come down from 16 to 15 even as each biscuit became lighter, but they seemed to understand the cost pressures on the firm. The gamble paid off: Parle was able to sustain its volumes. Strict cost control at every point in its supply chain also helped -- Parle entered into forward contracts with suppliers, outsourced production, increased the number of manufacturing locations to 60 and consolidated buying. Raw material costs account for 60 per cent of the total costs in this segment and packaging costs (plastic films) account for 20-25 per cent of this.

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PILLARS OF COMPANY SUCCESS: 1Appreciation through awards 2 Satisfaction survey 3 Zero defects 4 Coordination among employees 5 Kaizen &5s 6 Transparency in work 7 Trusts of each other 8 Involvement of all employees

VISION The main vision of Parle-G to Concentrate on consumer tastes and preferences, the Parle brand has grown from strength to strength ever since its inception. For fulfilling its vision they do every batch of biscuits and confectioneries are thoroughly checked by expert staff, using the most modern equipment hence ensuring the same perfect quality across the nation and abroad. MISSION Hindustan Ki Taakat. For over 65 years, Parle G has been a part of the lives of every Indian.From the snow capped mountains in the north to the sultry towns in the south, from frenetic cities to laid back villages, Parle G has nourished, strengthened and delighted millions. Various people have various reasons to consume it, some consume it for the value it offers while others consume it for sheer taste, For some it is a meal substitute for others it is a tasty healthy nourishing snack.

parle vs competitorsAlthough Britannia has more biscuit brands under its umbrella, has more in the urban sector, it is Parle which steals the thunder. Thanks mainly to its leading brand, Parle G, it retains, almost half the market share for biscuits in India. The Glucose brand that enjoyed a monopoly in the market for decades surpassed the expectations of its makers, in popularity. The brand recently achieved the distinction of being the highest selling Glucose biscuit in the world. Parle-Gs image as an affordable wholesome meal that could be used as a charger when low on energy as well as a tasty accompaniment with chai helped it to consolidate and retain its position as the number one biscuit brand for decades. ParleG enjoys a 69 percent share in the Glucose biscuit market, pegged at close to 2.7 lakh tones a year. This is a sharp lead over closest competitor Britannia Tiger, which has a 24 percent market share. The original Glucose brand, Parle-G is on coupled with other glucose brands such as Parle-G Magix and Parle-G Milk Shakti. These brands contribute more than 50 percent to Parle Products Pvt. Ltds turnover. The other brand in its stable are: Monaco, Krackjack, Marie, Hide n Seek, Chesslings, Jeffs, Sixer and Fun Centre. Parle biscuits are even sold abroad in markets such as the US, Australia, and the company is consolidating its position in places such as Abu Dhabi, Africa, Dubai, South, America and Sri Lanka. Lately the biscuit market 20

has been seen buoyant growth. According to AC Nielsen Indian Retail Store Audit Data of 2003, the biscuit industry in India grew by 11.7 percent last year, the highest in the Rs. 47,800 crore FMGC sector. The biscuit market accounts for seven percent of the FMGC market sales in India. However, Parles leadership position is not going to be easy. Competition is hungry for a larger share in the pie. Britannia is eyeing the Glucose brand and aims to overtake Parles within three years time. Britannia will also outsource its production and plans to invest Rs. 4 crore in the biscuit segment. It will launch a slew of products around Tiger, its leading Glucose brand. The entry of big players in the field could mean more competition for old hands in the game. Last year, Hindustan Lever Ltd (HLL) entered the market with its Kissan Greedy Biskits in three flavours. It also tried to re-launch modern as a Glucose brand. ITCs food arm entered the market with its Sunfeast range of biscuits with offerings in Glucose, Marie and cream segments. It wants to complete keenly with Parle and Britannia. A big threat to legitimate biscuit makers comes from the duplicate market. Counterfeit biscuits are not only available cheap but they dent the brand equity of legitimate brands. Besides smaller players are also entering the fray. According to the union food processing ministry the production of biscuits in the organized and unorganized sectors is estimated at about 11 lakh tonnes. Only 35 percent of this is made by the organized sector. Recent strides by such small players as Surya Foods, which makes Priya Gold biscuits, are also unnerving existing players. They could prove to be surprise future leaders. Competition has, of course, been trying to wean away customers from Parle. Britannia relaunched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18 per cent share, while ITC's Sunfeast glucose has captured 8-9 per cent, according to industry sources. Even Levers had forayed into this segment in 2003 and launched a glucose biscuit branded as Modern, after it acquired the bakery business of Modern. There are strong regional brands, including Priya Gold (west), Cremica (north) and Anmol (east). But they still have their work cut out.

PARLE PRODUCTS A number of products prepared at various units of Parle are as follows:Biscuits Variety:

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Parl M aco Krackjack Mayfair C li Hi & Seek Fun Centre Marie C oice Ni kin Milk Shakti Parle-G-Magi -Choco Monaco-Jeera Kreams Confectionary Varieties Kismi toffee Kismi bar Melody Chintoo bar Mango bite Funtoosh Poppins Role mint Orangee Kachha Mango bite Xhale Golga IRE USE IN MANUFACTURE OF PARLE RAW MATERIAL RE 1.Maida (Wheat Flour) 1. Sugar 2. Fat 3. Skimmed Milk Powder (SMP) . Inverted Sugar Syrup . Water . Sodium Bicarbonate . Ammonium Bicarbonate . Salt 9. Parle Flavor Mi 10. Citric Acid

FLOW SHEET FOR PARLE

PRODUCTION

RECEIVING OF RAW MATERIALS Not O K 22

QUALITY CHECK Found .K. STORE

REJECTED

MAIDA DUMPING

SIFTING

SUGAR (GRINDED)

MIXING

FAT

MOULDING

BAKING

COOLING

PACKAGING

DISPATCHING

THE QUALITY COMMITMENT Parle products have one factory at Mumbai that manufactures biscuits & confectioneries while another factory at Bahadurghar, in Haryana manufactures biscuits. Apart from this, Parle has manufacturing facilities at neemarana, in Rajasthan & Bangalore in Karnataka. The factories at Bahadurghar & neemrana are the largest such manufacturing facilities in India. Parle Products also has manufacturing units for biscuits & 5 for confectioneries, on contract. All these factories are located at strategic location, so as to ensure a constant out put & easy distribution. Each factory has state of the art machinery with automatic printing & packing facilities. All parle products are manufactured under the most hygienic condition. Grate care is exercised in the selection & quality control of row materials; packing materials & rigid quality standards are ensured at every stage of manufacturing process. Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment. 23

Parle saysabout quality that In todays knowledge driven business scenario, People are perceived as the most valuable assets of an organization and the optimum utilization of the skill, knowledge, attitude, they posses, are directly instrumental to the growth of any organization. Therefore, while recruiting a candidate for any role, position, level, function, it should always be ensured that there is no compromise in the quality of people, we hire. THE MARKETING STRENGTH The extensive distribution network, built over the years, is a major strength of parle products. Parle biscuits & sweets are available to consumers, even in the most remote palaces and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering 4, 25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agent supping goods to the wide distribution network. The Parle marketing philosophy emphasizes catering to the masses. We constantly endeavor at designing products that provide nutrition & fun to the common man. Most parle offerings are in the low and mid range price segments. This is based on our cultivated understanding of the Indian consumer psyche. The value for money positioning helps generate large sales volumes for the products. However, Parle products also manufacture a variety of premium product for the up market, urban consumers. And in this way, caters a range of products to a variety of consumers.

SCOPE IN PARLE-GDirect Employment: The unit provides ample opportunities of employment and an average of 647 contract employees 192 role based employees are being throughout the year including Permanent & Contract Workers, officers and Managers out of which maximum employees are from the local area. In-direct Employment: The unit also proves indirect employment like in a year an average 2500 trips of trucks are being used to dispatch its finished product to Rajasthan & Other states & bring raw material to the factory. Raw material is being purchased from local Traders like yadav Sugar, Rice Flakes, Empty Bottles etc., thus providing indirect employment to local Farmers & Traders. The unit purchases its raw material like Crown; Carton from other local industries in the state & from the industries of neighboring states which also employees may people thus provides indirect employment to those employed persons too. Because of the good quality Beer in the unit the demand of its beer is from many states which increase the state earnings in from of Export fee / Duty to the state. The unit so far in the year 2009-10 has exported 6680412 BL Beer to other states. Apart from state revenues the unit is providing employment to educated un-employed persons, and provides revenue to other departments of the state like Sales Tax, Electricity, Pollution Control Board etc. 24

the current financial year 2009-10 the state revenues from the unit are likely to touch 400 lacs. The Excise department has posted an AEO, LDC & a fourth Class employee in the unit and the wage expenses of these staff employees is around 3 lacs per annum which is around 0.75% of unit revenue to the state. 135 kms. from Regional Office Delhi Industrial Park Promoted by the Govt. Other Neighbours in the Park are : Sab Miller Ginni International Haryana Sheet Glass Tary Plus Nissin Break Mount Trading.

OBJECTIVES A To serve the national interest in the parle biscuits and related sectors in accordance and Consistent with government polices. B To earn a reasonable rate of interest on investment. C To maximize utilization of the existing facilities in order to improve efficiency and Increase productivity. D To work towards the achievement of self-sufficiency in the field E To achieve higher growth through integration increase merger and acquisition by Diversification new business opportunities.

working culture

Parle has a very open work culture. Our work atmosphere is comfortable and relaxed that helps increase productivity and efficiency. Group lunches and outstation team-building exercises that augment inter-personal relations and mutual understanding are part of our work culture. We organise discussion forums and training programs on stress management and employee well being. Yoga trainings, health check-up camps and workshops on healthy lifestyle are regular events in Pa

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.

CHAPTER-3

HUMAN RESOURCE STRATEGY 1Restricting of marketing division along business lines to focus on distinct products service 2 Comprehensive reward management systems introduced to motive employees to achieve higher performance level. 3 Leadership mirroring survey conducted across the organization for senior management level. 4Out bound experimental learning cross functional team building. Long duration sills up gradation training for promote officers introduced. HR TECHNIQUES ADOPTED AT PARLE. y 5S y KAIZENS y SQC y TQM y POKA-YOKE

1.5 S WORK PLACE MANAGEMENT: AN INTRODUCTIONBeing a food product manufacturing unit, good house keeping and hygiene practices are therefore of paramount importance in the industry. So Parle uses the concept of 5 S in the industry to keep the place clean and organized. 5 S is an Japanese concept for work placement management. 5 S includes the following: 1-S: SEIRI: Organization or re-organization is to sort out unnecessary items in the work place and apply stratification management to discard them e.g. Things not belonging to that area must be removed. Similarly if repairing is required in any item separate it and get it repaired .2-S: SEITON: Neatness: Put things in a proper way. Every thing should have a place and everything should be in its place 3-S: SEISO: Cleaning: The work place must neat and clean. There must be no dust on the floor, desk. The objects on the table must be in an organized manner. 4-S: SEIKETSU: Standardisation: Here we set standards or develop systems to be followed in the workplace. These standards can be thought of by brain storming and small group discussins. 5-S: SHITSUKE: 26

Discipline: This means whatever system is developed till now must be followed strictly with no pitfalls.

TQMTotal Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes. Total: Involving the entire organization, supply chain, and/or product life cycle Quality: With its usual definitions, with all its complexities Management: The system of managing with steps like Plan, Organize, Control, Lead Staff, provisioning and organizing

KAIZENThe image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

Kaizen (Japanese for "improvement" or "change for the better") is a philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. It has been applied in healthcare, government, banking, and many other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to eliminate waste . Kaizen was first implemented in several Japanese businesses after the Second World War, influenced in part by American business and quality management teachers who visited the country. It has since spread throughout the world. Kaizen is a daily activity, the purpose of which goes beyond simple productivity improvement. It is also a process that, when done correctly, humanizes the workplace, 27

eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes. In all, the process suggests a humanized approach to workers and to increasing productivity: "The idea is to nurture the company's human resources as much as it is to praise and encourage participation in kaizen activities." Successful implementation requires "the participation of workers in the improvement." People at all levels of an organization can participate in kaizen, from the CEO down, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group. At Toyota, it is usually a local improvement within a workstation or local area and involves a small group in improving their own work environment and productivity. This group is often guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's key role. Kaizen on a broad, cross-departmental scale in companies, generates total quality management, and frees human efforts through improving productivity using machines and computing power. While kaizen usually delivers small improvements, the culture of continual aligned small improvements and standardization yields large results in the form of compound productivity improvement. This philosophy differs from the "command and control" improvement programs of the mid-twentieth century. Kaizen methodology includes making changes and monitoring results, then adjusting. Large-scale pre-planning and extensive project scheduling are replaced by smaller experiments, which can be rapidly adapted as new improvements are suggested. In modern usage, a focused kaizen that is designed to address a particular issue over the course of a week is referred to as a "kaizen blitz" or "kaizen event". These are limited in scope, and issues that arise from them are typically used in later blitzesKaizen means "improvement". Kaizen strategy calls for never-ending efforts for improvement involving everyone in the organization managers and workers alike. Kaizen and Management Management has two major components: 1. maintenance, and 2. improvement. The objective of the maintenance function is to maintain current technological, managerial, and operating standards. The improvement function is aimed at improving current standards. Under the maintenance function, the management first establishes policies, rules, directives and standard operating procedures (SOPs) and then work towards ensuring that everybody follows SOP. The latter is achieved through a combination of discipline and human resource development measures. Under the improvement function, management works continuously towards revising the current standards, once they have been mastered, and establishing higher ones. Improvement can be broken down between innovation and Kaizen. Innovation involves a drastic improvement in the existing process and requires large investments. Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. 28

Implementation of Kaizen Strategy in parle-g One of the most difficult aspects of introducing and implementing Kaizen strategy is assuring its continuity. When a company introduces something new, such as total quality management (TQM), it experiences some initial success, but soon such success disappear like fireworks on summer night and after a while nothing is left, and management keeps looking for a new flavor of the month. This if because the company lacks the most important conditions for the successful introduction and implementation of Kaizen strategy.. Process-Oriented Thinking vs. Result-Oriented Thinking Kaizen concentrates at improving the process rather than at achieving certain results. Such managerial attitudes and process thinking make a major difference in how an organization masters change and achieves improvements.The image cannot be display ed. Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart y our computer, and then open the file again. If the red x still appears, y ou may hav e to delete the image and then insert it again.

The cycle of kaizen activity can be defined as: Standardize an operation Measure the standardized operation (find cycle time and amount of in -process inventory) Gauge measurements against requirements Innovate to meet requirements and increase productivity Standardize the new, improved operations Continue cycle ad infinitum This is also known as the Shewhart cycle, Deming cycle, or PDCA. .. Key elements of kaizen are quality, effort, involvement of all employees, willingness to change, and communication. The five main elements of kaizen Teamwork- in isolation ,productivity will naver improve ,peohple should work in teams that they can share their skills,competencies. Personal discipline if one works in discipline then he can better concentrate better on the work. Improved morale- morale should always be higher,thinking should be positive to cooperate with the stress of load. Quality circles Suggestions for improvement

29

Quick and Easy Kaizen Quick and Easy Kaizen (or Mini-Kaizen) is aimed at increasing productivity, quality, and worker satisfaction, all from a very grassroots level. Every company employee is encouraged to come up with ideas however small that could improve his/her particular job activity, job environment or any company process for that matter. The employees are also encouraged to implement their ideas as small changes can be done by the worker him or herself with very little investment of time. Quick and easy Kaizen helps eliminate or reduce wastes, promotes personal growth of employees and the company, provides guidance for employees, and serves as a barometer of leadership. Each kaizen may be small, but the cumulative effect is tremendous.

Statistical quality control (SQC)It is the term used to describe the set of statistical tools used by quality professionals. Statistical quality control can be divided into three broad categories: Descriptive statistics are used to describe quality characteristics and relationships. Included are statistics such as the mean, standard deviation, the range, and a measure of the distribution of data. Statistical process control (SPC) involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range. SPC answers the question of whether the process is functioning properly or not. Acceptance sampling is the process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results. Acceptance sampling determines whether a batch of goods should be accepted or rejected. The tools in each of these categories provide different types of information for use in analyzing quality. Descriptive statistics are used to describe certain quality characteristics, such as the central tendency and variability of observed data. Although descriptions of certain characteristics are helpful, they are not enough to help us evaluate whether there is a problem with quality. Acceptance sampling can help us do this. Acceptance sampling helps us decide whether desirable quality has been achieved for a batch of products, and whether to accept or reject the items produced. Although this information is helpful in making the quality acceptance decision after the product has been produced, it does not help us identify and catch a quality problem during the production process. For this we need tools in the statistical process control (SPC) category. All three of these statistical quality control categories are helpful in measuring and evaluating the quality of products or services. However, statistical process control (SPC) tools are used most frequently because they identify quality problems during the production process. For this reason, we will devote most of the chapter to this category of tools. The quality control tools we will be learning about do not only measure the value of a quality characteristic. They also help us identify a change or variation in some quality characteristic of the product or process. We will first see what types of variation we can observe when 30

measuring quality. Then we will be able to identify specific tools used for measuring this variation.

SQC AND PARLE-GIf one look at packets of namkeen placed at a grocery store, he will notice that no two Packets are filled to exactly the same level. Some are filled slightly higher and some slightly lower. Similarly, if we look at blueberry muffins in a bakery, you will notice that some are slightly larger than others and some have more blueberries than others. These types of differences are completely normal. No two products are exactly alike because of slight differences in materials, workers, machines, tools, and other factors. These are called common, or random, causes of variation. Common causes of variation are based on random causes that we cannot identify. These types of variation are unavoidable and are due to slight differences in processing. An important task in quality control is to find out the range of natural random variation in a process. For example, if the packet of namkeen may have 1 kg of namkeen, we may determine that the amount of natural variation in that packet is between .8 and 1.2 kg. If this were the case, we would monitor the production process to make sure that the amount stays within this range. If production goes out of this rangepackets are found to contain on average 1 kg this would lead us to believe that there is a problem with the process because the variation is greater than the natural random variation. The second type of variation that can be observed involves variations where the causes can be precisely identified and eliminated. These are called assignable causes of variation. Examples of this type of variation are poor quality in raw materials, an employee who needs more training, or a machine in need of repair. In each of these examples the problem can be identified and corrected. Also, if the problem is allowed to persist, it will continue to create a problem in the quality of the product. In the example of the namkeen packet filled with 1.2 kg of namkeen would signal a problem. The machine may need to be readjusted. This would be an assignable cause of variation. We can assign the variation to a particular cause (machine needs to be readjusted) and we can correct the problem (readjust the machine).

31

So far we have discussed ways of monitoring the production process to ensure that it is in a state of control and that there are no assignable causes of variation. A critical aspect of statistical quality control is evaluating the ability of a production process to meet or exceed preset specifications. This is called process capability. To understand exactly what this means, lets look more closely at the term specification. Product specifications often called tolerances, are preset ranges of acceptable quality characteristics, such as product dimensions. For a product to be considered acceptable, its characteristics must fall withi this preset range. Otherwise, the product is not acceptable. Product specifications, or tolerance limits, are usually established by design engineers or product design specialists. For example, the specifications for the width of a machine part may be specified as 15 inches _.3. This means that the width of the part should be 15 inches, though it is acceptable if it falls within the limits of 14.7 inches and 15.3 inches. Similarly, for soft drink , the average bottle fill may be 16 ounces with tolerances of _.2 ounces. Although the bottles should be filled with 16 ounces of liquid, the amount can be as low as 15.8 or as high as 16.2 ounces. Specifications for a product are preset on the basis how the product is going to be used or what customer expectations are. As we have learned, any production process has a certain amount of natural variation associated with it. To be capable of producing an acceptable product, the process variation cannot exceed the preset specifications. Process capability thus involves evaluating process variability relative to preset product specifications in order to determine whether the process is capable of producing an acceptable product. In this section we will learn how to measure process capability.

Where to InspectSince we cannot inspect every aspect of a process all the time, another important decision is to decide where to inspect. Some areas are less critical than others. Following are some points that are typically considered most important for inspection. Inbound Materials Materials that are coming into a facility from a supplier or distribution center should be inspected before they enter the production process. It is important to check the quality of materials before labor is added to it. For example, it would be wasteful for a seafood restaurant not to inspect the quality of incoming lobsters only to later discover that its lobster bisque is bad. Another reason for checking inbound materials is to check the quality of sources of supply. Consistently poor quality in materials from a particular supplier indicates a problem that needs to be addressed. Finished Products Products that have been completed and are ready for shipment to customers should also be inspected. This is the last point at which the product is in the production facility. The quality of the product represents the companys overall quality. The final quality level is what will be experienced by the customer, and an inspection at this point is necessary to ensure high quality in such aspects as fitness for use, packaging, and presentation. Prior to Costly Processing During the production process it makes sense to check quality before performing a costly process on the product. If quality is poor at that point and the product will ultimately be discarded, adding a costly process will simply lead to waste. For example, in the production of leather armchairs in a furniture factory, chair frames should be inspected for cracks before the leather covering is 32

added. Otherwise, if the frame is defective the cost of the leather upholstery and workmanship may be wasted. It is easy to see how operations managers can use the tools of SQC to monitor product and process quality. However, you may not readily see how these statisticaltechniques affect other functions of the organization. In fact, SQC tools require input from other functions, influence their success, and are actually used by other organizational functions in designing and evaluating their tasks.

SQC IN VARIOUS DAPARTMENTS OF COMPANYMarketing plays a critical role in setting up product and service quality standards. It is up to marketing to provide information on current and future quality standards required by customers and those being offered by competitors. Operations managers can incorporate this information into product and process design. Consultation with marketing managers is essential to ensure that quality standards are being met. At the same time, meeting quality standards is essential to the marketing department, since sales of products are dependent on the standards being met. Finance is an integral part of the statistical quality control process, because it is responsible for placing financial values on SQC efforts. For example, the finance evaluates the dollar costs of defects, measures financial improvements that result from tightening of quality standards, and is actively involved in approving investments in quality improvement efforts. Human resources becomes even more important with the implementation of TQM and SQC methods, as the role of workers changes. To understand and utilize SQC tools, workers need ongoing training and the ability to work in teams, take pride in their work, and assume higher levels of responsibility. The human resources department is responsible for hiring workers with the right skills and setting proper compensation levels. Information systems is a function that makes much of the information needed for SQC accessible to all who need it. Information systems managers need to work closely with other functions during the implementation of SQC so that they understand exactly what types of information are needed and in what form. As we have seen, SQC tools are dependent on information, and it is up to information systems managers to make that information available. As a company develops ways of using TQM and SQC tools, information systems managers must be part of this ongoing evolution to ensure that the companys information needs are being met. All functions need to work closely together in the implementation of statistical process control. Everyone benefits from this collaborative relationship: operations is able to produce the right product efficiently; marketing has the exact product customers are looking for; and finance can boast of an improved financial picture for the organization. SQC also affects various organizational functions through its direct application in evaluating quality performance in all areas of the organization. SQC tools are not used only to monitor the production process and ensure that the product being produced is within specifications. 33

As we have seen in the Motorola Six Sigma example, these tools can be used to monitor both quality levels and defects in accounting procedures, financial record keeping, sales and marketing, office administration, and other functions. Having high quality standards in operations does not guarantee high quality in the organization as a whole. The same stringent standards and quality evaluation procedures should be used in setting standards and evaluating the performance of all organizational functions.

POKA-YOKEPoke Yoke is a Japanese technique which means mistake proof system. Yokeru means to avoid and Poka means inadvertent errors. Poka Yoke methods are simple concept for achieving this goal.

Employee Welfare action:y y

y y y

UNIFORM, - 2 PAIRS OF UNIFORM,1 PAIR SHOES,& 1 PAIR SWEETER, TRANSPORTATION FOR ASSOCIATES AND TRANSPORT CHARGES FOR THOSE WHO ARE NOT AVAILING COMPANY TRANSPORT AT 5RS/DAYS, CANTEEN FOOD &TEA 3RS/DAYS, MEDICAL EXAMINATION- UNDER ESIC, SPORTS DAILY CRICKTE MATCH, BIRTHDAY GIFT, DEEWALI SWEETS & G

34

CHAPTER-4

RECRUITMENT STRATEGYINTRODUCTION Recruitment, as a human resource management function, is one of the activities that impact most critically on the performance of an organisation. While it is understood and accepted that poor recruitment decisions continue to affect organisational performance and limit goal achievement, it is taking a long time for public service agencies in many jurisdictions to identify and implement new, effective hiring strategies. In some areas, existing laws inhibit change; in others, the inhibiting factor is managerial inertia. This project discusses the strategY that organisations can and do employ to ensure the existence of the best possible pool of qualified applicants from which they can fill vacancies as and when required. Acquiring and retaining high-quality talent is critical to an organisations success. As the job market becomes increasingly competitive and the available skills grow more diverse, recruiters need to be more selective in their choices, since poor recruiting decisions can produce long-term negative effects, among them high training and development costs to minimise the incidence of poor performance and high turnover which, in turn, impact staff morale, the production of high quality goods and services and the retention of organisational memory. At worst, the organisation can fail to achieve its objectives thereby losing its competitive edge and its share of the market. Traditionally, Public Service organisations have had little need to worry about market share and increasing competition since they operate in a monopolistic environment. But in recent time, the emphasis on New Public Management/ Public Sector Management approaches has forced public organisations to pay closer attention to their service delivery as consumers have begun to expect and demand more for their tax dollars. No longer are citizens content to grumble about poorly-produced goods and services and the underqualified, untrained employees who provide them. As societies become more critical and litigious, public service organisations must seek all possible avenues for improving their output and providing the satisfaction their clients require and deserve. The provision of high-quality goods and services begins with the recruitment process. Recruitment is described as the set of activities and processes used to legally obtain a sufficient number of qualified people at the right place and time so that the people and the organisation can select each other in their own best short and long term interests.1 In other words, the recruitment process provides the organisation with a pool of potentially qualified job candidates from which judicious selection can be made to fill vacancies. Successful recruitment begins with proper employment planning and forecasting. In this phase of the staffing process, an organisation formulates plans to fill or eliminate future job openings based on an analysis of future needs, the talent available within and outside of the organisation, and the current and 35

anticipated resources that can be expended to attract and retain such talent. IT refers to the process of attracting, screening, and selecting qualified people for a job at an organization or firm. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies. The recruitment industry has five main types of agencies: employment agencies, recruitment websites and job search engines, "headhunters" for executive and professional recruitment, niche agencies which specialize in a particular area of staffing and in-house recruitment. The stages in recruitment include sourcing candidates by advertising or other methods, and screening and selecting potential candidates using tests or interviews.Contents Also related to the success of a recruitment process are the strategies an organisation is prepared to employ in order to identify and select the best candidates for its developing pool of human resources. Organisations seeking recruits for base-level entry positions often require minimum qualifications and experience. These applicants are usually recent high school or university/ technical college graduates many of whom have not yet made clear decisions about future careers or are contemplating engaging in advanced academic activity. At the middle levels, senior administrative, technical and junior executive positions are often filled internally. The push for scarce, high-quality talent, often recruited from external sources, has usually been at the senior executive levels. Most organisations utilise both mechanisms to effect recruitment to all levels.The recruiter

A range of people within an organisation may be called upon to act as recruiters (i.e., to answer telephone enquiries, conduct interviews, etc.). A recruiter can have a signifi cant impact on job applicants, particularly their interest in a position and their intention to accept a job offer. The supervisor for the position and coworkers are likely to be the most effective recruiters as they will be viewed as trustworthy and credible sources of information about a position and the organization. There is also evidence to indicate that friendly and informative recruiters are associated with firmer intentions to accept job offers. An experienced recruiter who is familiar with the organization can also be an important source of realistic and accurate information for candidates (i.e., providing a realistic job preview). Emphasizing the positive aspects of a position is important in order to attract desired candidates. However, an unrealistically optimistic job description may create problems in the longer term if a new employees expectations are not met.

Evaluation of recruitment strategy Periodically evaluating the effectiveness of your recruitment strategy, such as the type of sources used for recruiting, can be a useful activity. For instance, a cost-benefi t analysis can be done in terms of the number of applicants referred, interviewed, selected, and hired. Comparing the effectiveness of applicants hired from various sources in terms of job performance and absenteeism is also helpful.

36

Employment BrandingIt should be emphasized today that the 21st century belongs to human resources and to organizational capabilities. In order to attract talent, an organization needs to differentiate themselves from others. employment branding gets the company the talent it seek . The Business Development Bank of Canada (BDC) states that one of the most important issues in attracting talent today is to market your company . BDC consultant Bill Guest states, Potential employees want to know that they will be working for an organization that has a good reputation. This reputation or culture is very important to potential talent and true branding ensures high motivation and helps align employees vision and values with those of the organization . As an organization, the people of an organisation know their market and have a clear vision on how to provide services or products to that market. Consider how our organization is representing itself in the community. What is its public presence? What is the public perception? Then do what you can to clarify, unify and promote that message. In the future, you will likely have to have an employment marketing vision or employment brand for attracting new talent. Creating awareness of the organization is another important step in attracting the best people .

Recruitment Process: FLOW CHART

Phase

I: Pre-Selection

Functional or Regional Head

MRF Approval

&

Approving Authority

Job Description & Candidate Profile (Education, competencies, Attitude etc)

SearchHR

y y y y y y y

CV Sources Internal CV database Hiring Consultants e-Recruitment portals News paper Advertisement Internal Reference Personal Networks Market Intelligence

CV Bank

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Phase II: Selection

Initial HR ScreeningShort-listed CVs Called for Personal Interviews (Local candidates)

CVs not short-listed go to CV Database (For Future use)

Short-listed CVsTel. Interviews (Outstation candidates)

HR co-ordinates to organize the interviews Preliminary Interviews (As per the Selection approving Matrix)

Short-listed candidates

Final Interview (As per the Selection Approving Matrix)

De-briefing & final decision (Interviewers discuss amongst themselves & with HR to take a final selection decision)

Phase III: Post-Selection

38

Salary proposal (Approved Authority to prepare it keeping in mind the Internal Equity)

Approved authority does Salary Negotiation & Extends the offer HR closes it & sends out the offer letterOffer Accepted Offer NOT Accepted

HR works out the modified offer, if possible within the band, and tries to pursue & seals the offer

HR informs the concerned Functional Heads & the Regional Heads about the probable DOJ

HR does the necessary Reference checks & get the details documented in specified format

Recruitment Cycle Time:To bring in more dynamism and effectiveness in t he recruitment process, HR follows a specific project deadline of 30days (from the day it had received the approved Manpower Requisition) to hire a new employee. The process specific schedule break -up is mentioned below

Phase I

Activities Role Identification, JD, competency mapping & CV Sourcing Initial HR screening / short -listing

Time frame 12ays 2 days 4 days 4 days 2 days 6 days

II

Organizing the Preliminary Interviews Organizing the Final Interviews De-briefing sessions to take the final decisions

III

Preparing the Salary Proposal, Negotiate with the selected candidates & offer closure

39

CHAPTER-4

RECRUITMENT STRATEGY for parle-gy

By the 30th april of every year manpower plans are prepared ,net requirement of each department for the year is derived (skill + category wise) by the HODs ,RSMs BHs.These future plans are then approved by the MD of the company.

OBJECTIVE: a-Recruit qualified, knowledgeable, motivated, engaged and flexible employees. b- Recruit employees who are likely to be able to fill various parallel and vertical positions within the organization. c- Retain employees longer, reduce employee turnover rates, and limit the need for recruitment activities. d- Reduce the cost per hire and total cost of recruitment activities in the organization e.To ensure that we always hire the RIGHT people at RIGHT role at RIGHT time, f.Also to thrive a strong Employer Branding to attract the best talents available in the Industry

Equal opportunities Parle is committed to being an equal opportunities employer which values its staff and others who come into contact with it, irrespective of gender, marital status, sexuality, race, ethnic or national origin, colour, gender reassignment, political or religious belief, disability or age. In any of our recruitment and selection procedures, we must ensure that there is no discrimination, either direct or indirect. Every worker has rights and obligations under various legislated acts. Key legislation relevant to recruitment practices involves equal opportunity and anti-discrimination in employment and ensure that recruitment practices are not influenced by any irrelevant features of the candidate such as age, gender, physical impairment, marital status, medical record, nationality, cultural background, religion, sexual preference, social origin, or trade union activity. Recruitment practices should be based on a candidates knowledge, skills and abilities relevant to those specifically required for the duties of the position. Such practices should be free from discrimination adhering to legislation) and patronage (such as employing friends or jobs for the boys). UNDER THE MICROSCOPE

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To ensure fair treatment: Prospective applicants must be given equal and reasonable access to adequate information about the job and its requirements; and about the selection process; Applicants must be considered equally on merit at each stage of the selection process Selection must be based on relevant criteria applied consistently to all the candidates Equality of opportunity must apply throughout the process; Job opportunities are known about and publicised by various means as appropriate to the post and resources available -internal advertisements, press and agency advertisements. Selection is fair and objective at each stage -we continuously monitor and compare our equal opportunities statistics to ensure we have a diverse workforce and seek improvements. Those appointed have the necessary skills and competencies for the job competencies are detailed in advertisements, job descriptions, and interview assessment forms. Descrimination should be avided. Descrimination in a recruitment process can of following types:

1. Direct DiscriminationThis occurs when there is: less favourable treatment in comparison to another person of a different group; or less favourable treatment on the basis of a characteristic or presumed characteristic that is associated with the group the person comes from. Example: Not recommending applicants for a position because they are either perceived to be too young or too old. This is an unreasonable because a persons age is not a determinant of their ability. Indirect Discrimination This occurs when there is a policy, rule or way of doing things that might appear on the surface to be fair or neutral, but which has an unequal effect on certain groups of people. Indirect discrimination is unlawful when the rule or requirement is unreasonable. Example: 1.An agency makes a rule that to be eligible for an promotion to an executive position, an applicant must have had at least five years experience in a similar job. younger applicants may had the skills, knowledge and capacity required to perform the job, but not the stated length of experience. this may be indirect discrimination on the ground of age. selection panel organises to hold all interviews prior to 8:30am or after 5pm in order to suit their business. However this indirectly discriminates against applicants who have reasonable family responsibilities which result in them being unavailable at these times.

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The importance of fairnessThe employer has the legal responsibility to ensure that no unlawful discrimination occurs in the recruitment and selection process on the grounds of sex, race, disability, age, sexual orientation, and religion or belief. Equality of opportunity is an integral part of the recruitment and selection process, and to this end employers may offer training and encouragement to any under-represented groups. Examples include preapplication assistance for those who do not have English as their first language, or management development training for women where they are under-represented in management grades Job advertisements may also state that the employer encourages applications from those groups that are under- represented in the organisation. Employees and their representatives will also have an interest in fair, nondiscriminatory recruitment and selection policies, and they should be fully consulted when new procedures are introduced or existing procedures reviewed. The Sex Discrimination Act 1975, the Race Relations Act 1976, the Employment Equality Regulations (covering sexual orientation, religion or belief, and age) and the Disability Discrimination Act 1995 set out the legal requirements for employers. Organizations should be aware that the provisions of the Disability Discriminatio Act 1995 not only make it unlawful to discriminate against disabled individuals without justifiable reason but also require employers to make reasonable adjustments to the workplace or working arrangements.

RECRUIT FROM DIVERSE BACKGROUNDAnother strategy is to consider persons from other career paths with similar competencies, . Employers need to think creatively about the competencies or transferable skill sets necessary for the job, and think beyond their industry specific box. Consider interviewing someone from a different industry background, seek common skill sets or common competencies, and explore how that diversity can be mutually beneficial for your organizational culture. Diversity should also go beyond industry. By recruiting from all age groups, the organization of the future could see a five decade spread between employees. The needs and desires of the younger twenty something talent will be quite different than the needs of the septuagenarian, and employers will need to adapt. Additionally diversity must move beyond being a purely intellectual exercise to becoming an inherent component of organizational values . Diversity for a growing number of organizations will require talent with differing ethnicity, sexual orientation, physical abilities, age and gender. The organisations with an inclusive organizational culture will attract and retain the much needed talent for the future. The younger talent according to want work to be fun and to interact with other young people. these young adults may not be a predictable source labour as they engage in an endless round of working, going back to school, and traveling Generations calls this group of young talent Millennials and describes them as sociable, optimistic, talented, well-educated, collaborative, open minded, influential and achievement oriented. Currently this generation is heavily marketed to. organizations look at attracting this M/E generation from other provinces rather than looking to immigration as a way to solve labour shortages. 42

companies need to learn lessons from professional sports and take steps such as offering five-year contracts with agreed severance packages and signing bonuses. employers should design recruitment programs and management systems based on the values and needs held by. Work with positive people Be challenged Be treated respectfully Learn new knowledge and skills Work in friendly environments Have flexible schedules Be paid well Be coached and mentored, not micromanaged These PEOPLE are the talent currently living in our community and attending our schools. With adequate training, apprenticeship or mentorship they could help mitigate a skilled worker shortage. The wants of older talent from a job are similar to those of their children, the Millennials, but many are more concerned about leaving a legacy and doing meaningful work than the status of their job title. Every 7 seconds another Boomer turns 50 and for the most part they are very concerned about health and wellness . In a University of Windsor research project on 50+ employees and retirees, Armstrong-Stassen identified seven ways to attract this talent. 1. Provide more part-time work arrangements, seasonal options 2. Provide training to upgrade current skills and to acquire new skills 3. Provide opportunities to be promoted or transferred 4. Provide management training on how to utilize and manage 50+ employees 5. Create mentoring roles or special projects for 50+ employees 6. Provide phase-in retirement arrangements, opportunities to reduce work time 7. Provide contract, temporary or consultation opportunities not be enough younger people to fill the void when the baby boomers start to retire .

How fairness/equity can be maintained in the recruitment process:It is often difficult to ensure and maintain fairness/equity in the recruitment process although, in every jurisdiction, there are laws that protect individuals and vulnerable groups from the negative impact of discriminatory practices. Where necessary, systems, detailed procedures and processes exist or must be established to minimise discrimination. -The usual format of job fairs is to have several companies set up information stations at an expo, with at least one representative of the company present to provide information. The fairs usually have a common theme or are specific to a certain field or area of interest. Interested individuals browse through the information provided by each company and then decide whichcompany, if any, they would like to apply to. They have the opportunity to talk with a current employee of specific companies to learn more about the employment experience. -Each country designates/identifies a group or groups for special notice; women, visible minorities and the disabled are usual targets. In the legislation, managers responsibilities for employment equity are stated as: Ensuring effective overall performance and continuous progress of the 43

employment equity goals within the operation; Achieving, fostering and maintaining a representative workforce; Showing leadership in employment equity and demonstrating commitment to it by ensuring that discrimination and stereotyping are not tolerated; and Informing and educating employees in the organisation about employment equity and diversity. Government , in ensuring that there were no infringements against individuals rights, issued general guidelines on workplace diversity, some of which related to recruitment: Integrate workplace diversity with the agencys goals and business. Reflect agency workplace diversity objectives in workplace agreements and certified agreements. integrate workplace diversity principles into human resources policies and practices. Include implementation of workplace diversity objectives in the corporate plan, business plan and client service charters. Ensure information about employment opportunities is available in accessible formats. Review recruitment and selection processes to ensure that current and potential employees are not discriminated against. Gather information on demographics. , Legal mandate The recruitment, selection and placement of personnel is done in terms of the legal framework applicable to the organisation which are engaged in providing services or products to the public, The following Acts make certain types of discrimination unlawful in employment therefore, also cover the total selection process from advertising to appointment: Equal Opportunity Act, 1984 Sex Discrimination Act, 1984 Racial Discrimination Act, 1975 Disability Discrimination Act 1992 Human Rights and Equal Opportunity Commission Act 1986 Human Rights Legislation and Equal Opportunity Commission Act (1986) Equal Employment Opportunity for Women in the Workplace Act (1999) The Disability Discrimination Act (1992). Management of the selection process according to the regulatory framework ensures accountability. Thus all applicants who qualify are given an opportunity to compete for appointment, while serving officials may compete for promotion or transfer.

Initiating Recruitment Recruit ment is always initiated by Depart mental Head for all posit ions. The initiator shall send the manpower requisition for m t o HRD and discuss with HR Head on possible sources. Any difference in job specifications compared to that in databas e would also be discussed. HRD and the Department Head would agree on methods and end dates for recruitment depending on the urgency. The depart ment has the opt ion of keeping a vacancy in abeyance.44

. I. Esti mating the number a nd class of manpo wer required for prese nt and i mme diate future needs. The first stage in the procedure is concerned with the question of what resources are needed, i.e. the demand. Details of requirements will emerge from the compilation and regular revision of the human resource plan. In practice, job vacancies may occur when an organization or work unit is set up ab initio, when there is expansion, when any reorganization takes place through changes of policy, technology, location, mergers, acquisitions, demergers or, most commonly, when employees leave the organization and need to be replaced. Because of the subtle changes that are continuously taking place in work organizations, the existence and nature of job vacancies should not be accepted without question. Sound human resource planning and job analysis, regularly and systematically reviewed, should ensure that this does not happen. one of the most important roles the HR function can perform is to ensure there is a review of the need for skills and to discuss with line managers how work is being organized efficiently. Labour turnover offers the chance of changing structure, analysing work processes, perhaps to decide that there is no vacancy, or that the competences required are different from those of the previous employee. It is helpful to think in terms of capability and the competences necessary for successful performance, rather than the job as having an existence. Increasingly, organizations consider employing people with contracts that depart from full-time, normal working hours. This allows the organization to access new labour markets. These include short term, part time, job-sharing, working from home, term-time working, annualized hours, compressed work hours, twilight shifts and callout contracts among a variety of working time available. At the same time franchise operations and subcontracting arrangements provide opportunities for work to be carried out without the employer bearing the costs and risks of traditional recruitment and employment methods. Sourcing T he requirements are carefully estimated because any negligence would result in either overstaffing or understaffing. T he estimation of the nu mb er of employees required for each category/cadre or