Study Of Human Resource Policy In Vardhman.docx

STUDY OF HUMAN RESOURCE POLICY IN VARDHMAN INTRODUCTION  Meaning of HR policy A human resource policy manual serves as the organizational backbone that guides the behaviour and expectations of employees and management. It is only natural, the employees will push the limits on matters like dress code, absences, interpersonal interaction, and achievement goals. HR policies provide an overview of how the organization functions and more importantly, how employees must contribute to the well-being of this effort. It is almost impossible to create a policy for every detail of a work environment. Instead, consider the critical categories that will provide general workplace guidelines. Interpretation and flexibility must be a given. The end goal is that the company functions in a consistent manner and is protected from situations that could be litigious or unsafe. General categories to be addressed include hiring practices, onboarding, employee conduct, workplace safety, compensation and performance evaluations. Each organization is unique, so create HR policies that best fit the needs and functions that are most relevant to your workforce.

 ADVANTAGES OF FORMAL HUMAN RESOURCE POLICIES

Small business owners who have prepared and updated good personnel management policies have cited several important ways in which they contribute to the success of business enterprises. Many observers have pointed out that even the best policies will falter if the business owners or managers who are charged with administering those policies are careless or incompetent in doing so. But for those businesses that are able to administer their HR policies in an intelligent and consistent manner, benefits can accrue in several areas: 1 Communication with employees. A well written and thoughtfully presented human resource policy manual can establish the tone that a new business person wishes to maintain within his or her business. Such a policy also serves to disseminating information about what employees may expect from the company as

well as what the employer expects from the employees regarding work performance and behavior while on the job. 2 Communication with managers and supervisors. Formal policies can be helpful to managers and other supervisory personnel faced with hiring, promotion, and reward decisions concerning people who work under them. 3 Time Savings. Prudent and comprehensive human resource management policies can save companies significant amounts of management time that can then be spent on other business activities, such as new product development, competitive analysis, marketing campaigns, etc. 4 Curbing litigation. Members of the legal and business communities agree that organizations can do a lot to cut off legal threats from disgruntled current or exemployees simply by creating--and applying--a fair and comprehensive set of personnel policies.

 Areas where policies are commonly established:

1. Confidentiality 2. Conflict of Interest 3. Compensation 4. Overtime 5. Working conditions 6. Attendance 7. Hours of Operations 8. Termination 9. Recruitment 10. Privacy 11. Employee Information

12. Bereavement Leave 13. Compassionate Leave 14. Vacation 15. Sick Leave 16. Maternity, Parental, and Adoption Leave 17. Unpaid Leave 18. Performance Management 19. Discrimination and Harassment 20. Health and Safety 21. Accident Reporting 22. Family Leave 23. Short Term Disability, Long Term Disability 24. Grievance/Conflict Resolution 25. Learning and development 26. Benefits and Eligibility 27. Jury Duty 28. Formal complaint process 29. Disciplinary 30. Workplace Violence 31. Alcohol and Drug Use Policy 32. Use of Company Equipment

 List of Human Resource Policies and Procedures: There are two different parts of human resource (hr) policies, first half of the human resource policies and procedures are formulated on the basis of their source and second half of the human resource policies are provided on the basis of their description. And detailed information about these Human resource policies and procedures are stated below.

I On the basis of source:

In this source based human resource policies the actual activities in which all the employment policies are generated mainly rely upon their managers and employees working needs and wants. Moreover, this reliance can be classified in different terms of words and they are as follows.

1. Originated policy: The actual nature of working in relation with the originated policy is handled and established by the senior manager so that the senior manager can understand all the necessary requirements of the employees. Moreover, these senior managers provide these guidelines to their subordinates to improve and develop their professional career. Therefore, it is necessary to understand the originated policies for the empowerment of the employees of the company.

2. Implicit policy: With the help of these policies, the managers can express their intention in favour of the company. First of all the actual importance of these implicit policies are implied because of the nature and behaviour of the managers. And that is why these implicit policies are also called and recognized by the name of implied policies of the company.It is quite clear that these implicit policies are recognized by the managers of the company. Therefore, it is necessary to understand that these policies are made in favour of the manager’s requirement.

3. Imposed policies: The nature of working in the company doesn’t include only the management of the company. Moreover, as the matter of fact,

the organizational structure of the company even depends upon the governmental agencies of the company. The human resource policies and procedures of the company will also provide with the provision that, part of the policy of the company can be governed and favoured by the governmental agencies or trade unions. It is one of the policies which is made for the development of the staff and workers value in the company.

4. Appealed policy: It is not an actual policy, as its name suggests it is such kind of policies which are requested by the managers of the company, so the management of the human resource policy will consider looking into a certain situation which is not included in all the above-mentioned policies. The appealed policies can be generated by the managers and employees of the company, but the final decision of that appeal, whether it is accepted or rejected can be decided by the human resource management of the company.

II On the basis of description: The human resource policies and procedures of the company are made for the advantage and benefit of the company employees and their employment. And the nature of working of the human resource policy which is made on the basis of its description can be derived on behalf of the company development.

1. General policy: It is one of the policies which is based on the description of its working. The human resource policy based on their description established some of the general policies. These general policies are completely different from the rest of the policies generated from the human resource management of the company. As these general policies don’t belong to any particular issues of the company, and that is why it is named as the general policy of the company.

2. Specific policy: As its name suggests, the specific policies are those types of policies in an organisation which is related to specific issues of the company such as staffing, recruitment and salary related issues. Therefore, these specific policies are designed to undertake those specific issues of the company. Moreover, all the working order of these specific policies of the company favours all the staffing related issues of the company.

Additional Types of Human Resource Policies and Procedures: All the additional aspects and types of human resource policies are established with the criteria of company requirements which is beneficial for their employers and employees. Therefore, it is necessary to understand all those criteria of such human resource policies and procedures based on their additional aspects.

1. Attendance: Some of the workplace policies and procedures are designed for the sake of the employee benefit. And attendance relates policies are one of the common policies made by the human resource of the company, wherein which it needs the employees of the company take an active shot on their responsibilities assigned by the company. There are certain types of leaves which is allowed occasionally or suddenly for all the employees of the company such as sick leaves, pay leaves, without pay leave and much more.

2. Behaviour: It is one of the criteria where in which the human resource policy department of the company designs their priority in the manner of the company policy. These policies designed by the human resource department of the company are created to examine all the behaviour of the employees of the company. Therefore, it is necessary for the employees and the managers of the company to step in strongly in the matters of the company policy.

3. Request: Some of the policies such as appealing policies are made on the basis of the requests received by the managers and the employees of the company. It is one of the beneficial policy of the company which doesn’t include any type of specific rule and regulation in terms of the company matters. Therefore, these requests can be made for the welfare of the company and its employees. The employees of the company can raise their voice against any issue in the format of a request for the purpose of company growth and employee development as well.

4. Safety: It is a common measure that management and organization of the company need to plan before anything. It is a safety and security measure of the company. And it is formed for the protection of the company managers and its employees. Therefore, there is nothing as the safety policies of the company are only for the managers of the company. Moreover, the actual working part of the company is created for the employees of the company and that is why the company holds on to the responsibility that it should safeguard all the members of the company.

 Model of the Study The following diagram illustrates the model of this research. In general organisation Hr policies organisational performance Hr planning efficiency Recruitment and selection turnover Training and selection effectiveness Job analysis and design employees loyalty Motivation job satisfaction Participation in decision Performance appraisal

CHRACTERISTICS OF HR POLICY

1. Related to Objectives: Policies must be capable of relating objectives functions, physical factors and company personnel.

2. Easy to Understand: Policies should be stated in define, positive, clear and understandable language. 3. Precise: Policies should be sufficiently comprehensive and prescribe limits and yardsticks for future action. 4. Stable as well as Flexible: Personnel policies should be stable enough assure people that there will not be drastic overnight changes. They should be flexible enough to keep the organization in tune with the times. 5. Based on Facts: Personnel policies should be built on the basis of facts and sound judgment and not in personal feelings or opportunistic decision. 6. Appropriate Number: There should be as many personnel policies as necessary to cover conditions that can be anticipated, but not so many policies as to become confusing or meaningless. 7.consideration :The HR policy should be formulated after considering the long range plans and needs of the organisation. The policy should be definite, positive, clear and easily understood by everyone in the organisation so that what it proposes to achieve in the long term is evident. Only a clear policy statement can serve as a guide to thinking and decision-making.

OBJECTIVES OF HRM POLICY 1. Defining Organizational Structure And Driving Productivity Human Resource Management is a method to realize competence and drive efficiency in organizational work. Therefore, its chief determination remains in accomplishing organizational goals. It has to benefit organizations by outlining clearly defined aims and achieving them. Apart from meeting the organizational goals, Human Resource Management also describes the key problems to be taken care of and governs rules and urgencies. It engenders

organizational efficacy, by hiring efficient people, training them and effectively employing the workers. It should also develop the service that organization provides to the society through structuring employee confidence in a positive direction, which is at the front of effectual individual and group performance.

2. Building Coordination Between Organizational Departments Human Resource Management is responsible for coordination and harmonious functionality within, and between different departments. The resources are organized to achieve business objectives. Also, it is to be made certain that there is functional utilization and all-out growth of human resources. Human Resource Management should aim at making effective use of the workforce through proper direction of the organizational sectors. This includes refining the conditions for successful outcomes, by making appropriate decisions about human resource planning, recruitment, evaluation, rewards, training and improvement and staff associations that are reliable and sustain the business strategy.

3. Offering Employee Satisfaction It has become harder than ever for companies to hire and sustain capable people because of the rising global competition. Add to it, the lack of sufficiently skilled personnel. As such, it becomes an undeniable priority for Human Resource Management to hire and train the right talent. It should be ensured that there is an environment of respect among people in the organization, and individual needs are catered to. The HR strategies, policies and ideas for individual improvement must be cohesive with the organization’s strategic goals. It should gratify individual objectives of employees so that personal and organizational objectives can be aligned, conducive to reaching maximum productivity and establishing a certain competitive edge.

4. Keeping Up With The Societal And Ethical Models It must be the responsibility of Human Resource management to ensure that legal, ethical, and social environmental issues are suitably dealt with. It must make sure that the human resources are officially and compliantly coped with and their requirements are recognized and fulfilled. It should also consider the societal ethics and undertake social responsibility.

5 Optimum Use of Human Resources: Every organisation tries to make use of the available human resources to the best of their capabilities. Right men should be selected for the right jobs. With the help of personnel policies, jobs are defined and responsibilities of the personnel are specified so that there are no square pegs in the round holes. 6. Training Of Everyone: The other main object of personnel policies is to train and develop everyone so as to make them competent for doing their job. Only a trained worker can do his job efficiently. The personnel policies must encourage healthy and constructive competition among the workers and also provide an opportunity for development and growth of an individual. 7. Sound Industrial Relations: Personnel policies aim at creating sound industrial relations and tend to establish conditions for mutual confidence and understanding. Workers are encouraged to put forward constructive suggestions and are given participation through joint management councils and works committees. All this leads to industrial peace. Many operational problems are avoided by having well formulated policies.

8. Payment of Fair Wages: Personnel policies must aim at ensuring the employees that they will be given fair wages for the work done by them. 9. Security of Employment: One of the objectives of personnel policies is to provide security of employment to the workers. Such policies provide an efficient consultative service which aims at creating mutual faith among those who work in the enterprise. All types of doubts relating to loss of employment are cleared from the minds of workers. Thus, social as well as economic security is provided to workers. 10. Respecting Human Dignity: Personnel policies ensure fair treatment to all irrespective of caste, colour and creed and aim at respecting the human dignity. Workers are offered good and healthy working .

PURPOSE OF HR POLICY HR policies and procedures are written by human resources departments for various reasons. Some of them are written to comply with government mandates. A government mandate is a law that an employer must follow in order to ensure fair treatment and safety of employees. This might include policies that restrict the number of working hours an employee is allowed to work with no break, for example. Some are written for practical reasons, such as cutting insurance costs. For example, a company might institute a no smoking policy

on campus. Others might be written to show solidarity with health, social, or political movements. For example, long before gay marriage was legally recognized across the United States, many organizations had already written policies that included same sex partners as recipients of health benefits and retirement plans. Usually, HR departments also issue a generalized policy with wording such as: ''We do not discriminate against employees or applicants on the basis of age, color, disability, gender, national origin, race, religion, genetic information, veteran status, pregnancy, or any other basis protected by law.'' This kind of policy covers a wide range of employment laws, which help ensure that all employees will be treated equally in the workplace. Many human resources policies and procedures include an active approach towards protecting employees and ensuring fair treatment. These might include mandating diversity and discrimination training and harassment training. Receiving this kind of training helps an employee identify mistreatment in the workplace and take the proper steps to ensure that it stops.

IMPORTANCE OF HR POLICY 1 Risk Mitigation HR policies can protect your company from liabilities concerning claims of unfair employment practices. They're important because many HR policies are related to company's obligations under federal and local laws and regulations. For example, HR policies related to minimum wage

and overtime -- provided your company strictly adheres to them -- can demonstrate that your company pays employees wages in accordance with applicable laws. In addition, your company's HR policies that prohibit discrimination based on age, sex, disability, veteran status, marital status and other non-job-related factors are part of your organization's legal defense should anyone ever allege that you engaged in unfair employment practices.

2 Employee Confidence Providing your employees with written HR policies can improve their job satisfaction, confidence and, ultimately, their morale and engagement. Without guidelines that inform employees of the company's performance expectations, pay practices and code of ethics, your HR department could be bombarded with such questions as "When will I get a paycheck?" "How do I get promoted?" or "To whom do I report harassment?" Leaving employees to wonder about company practices concerning pay, promotion and employee safety causes uncertainty throughout the workforce. Employees who feel they are working for an organization that has little-to-no structure might be less engaged, and have poor job satisfaction and low morale. Dissatisfaction and poor morale can lead to turnover, which is a costly proposition for even the most successful businesses. Employees who have confidence in their employer might be happier in their jobs, and happiness, according to Jonha Revesencio, a Fast Company contributor, reports that studies indicate happier employees are more productive employees.

3 Strategic Direction HR policies support the organization's strategic direction, and consequently, the company's growth and ability to sustain operations. For example, if your company's goal is to become known for superior customer service, the HR policies are guidelines for hiring, training and retaining employees who provide customer service that exceeds your customers' expectations, Therefore, HR policies as they relate to recruitment, training and retention are critical to benchmarking your company's overall success. From an employee's perspective, HR policies that support the organization's mission and purpose can further enhance job satisfaction, thus making it easier to hire and retain workers whose professional goals are parallel to your company's goals.

4 Recruitment and Employment Advertising for and hiring employees is a core HR function. Human resources policies that include what goes into the recruitment and selection process inform employees of the company’s expectations and procedures. This is particularly useful if an employee wants to refer a job applicant to your company.

5 Rehires and Promotions

Human resources policies explain the company’s stance on rehires and promotions. This includes the grounds for rehiring a terminated worker and the process for moving up in the company. Typically, employees who leave the company in good standing are eligible for rehire, and employees who have performed satisfactorily or above expectations receive promotions. These policies include what employees need to do to be considered in these instances.

6 Compensation and Evaluations Human resources staffers use a combination of job analysis techniques and market surveys to determine the amount to compensate an employee while remaining competitive within the workforce. Further, the department establishes policies that address the evaluation and management of employee performance. While the policies do not state the amount employees receive, they do state that employees are compensated according to their skills, efforts and scope of responsibilities. This informs employees of the basis for compensation.

7 Training and Development HR policies include provisions for training and professional development so employees know the resources that are available to them. These policies also help reassure new employees, as well as those who have been given added responsibilities, that assistance is available.

8 Employee Issues HR policies inform employees about how to handle problems at work. Whether the issue involves coworkers, management or the work itself, employees want to know that they have someone they can share their concerns with in private. The policy outlines the chain of command in handling problems, such as the employee approaching her supervisor or manager first, or going directly to HR.

9 Company Rules HR policy manuals outline internal policies and the company’s code of ethics. This includes items such as dress code, professionalism, vacation time, personal and sick time, holidays, workplace safety, discrimination, and how to interact with co-workers and customers. Ethics is particularly important because it tends to vary from person to person. By outlining what constitutes good behavior in your company, employees know what’s expected of them.

10 Labor Law Application

Labor laws are vast and complex. Human resources policies include posting a breakdown of laws so employees understand how the laws apply to them. Policies dealing with minimum wage, overtime, record-keeping, employee benefits and breaks clarify what employees are entitled to and how to do their part to ensure timely paychecks, such as submitting time cards to the payroll department on time.

11 Grounds for Termination HR policies state the grounds for which an employee can be terminated. Explaining grounds for termination helps protect the company if from retribution if an employee was fired for violating policies clearly stated in the company manual.

The main purpose of formulating the HR policy is to assist the top executives in reaching the decision in a given situation. The process of policy formulation involves the following steps:

Steps 1. Identifying the Need: If an organisation does not already have an appropriate personnel policy, the personnel manager should feel its needs. He should also convince the chief executive of the need of a personnel policy. Policies are required in various areas of personnel management such as hiring, training, compensation, industrial relations etc. A staff expert, a first-line supervisor, a UN ion leader or a rank-and-file employee may voice the need for revision of an existing policy.

2. Gathering Information: Once the need for a policy has been accepted, the next step is to collect necessary facts for its formulation. A committee or a specialist may be assigned the task of collecting the required information from inside and outside the organisation.

Facts may be gathered from any of the following sources: ADVERTISEMENTS:

(i) Past practice in the organisation. (ii) Prevailing practice among the companies in the community and throughout the nation in the same industry. (iii) The attitudes and philosophy of the top management. ADVERTISEMENTS:

(iv) The attitudes and philosophy of middle and lower management. (v) The knowledge and experience gained from handling countless problems on a day-to-day basis. The HR department should study existing documents, survey industry and community practices and interview people within the organisation to collect appropriate information. Special attention should be paid to attitudes and philosophy of top management, social customs and values, aspirations of employees, labour legislation etc. Widespread consultations and discussions at this stage prove helpful later on when it comes to applying the policies.

3. Examining Policy Alternatives: On the basis of data collected, alternatives are appraised in terms of their contributions to organisational objectives. It is necessary to secure active participation of those who are to use and live with the policies.

4. Putting the Policy in Writing: After the necessary information has been gathered and the alternatives examined, the HR department can begin the actual work of formulating the written expressions of the company’s HR policy. While writing the policy, emotional phrases should be avoided.

5. Getting Approval: The HR department should send the policy draft to the top management for its approval. It is the top management which has the final authority to decide whether a policy adequately represents the organisation’s objectives or not.

6. Communicating the Policy: After getting the approval of the top management, the policy should be communicated throughout the organisation. A real education programme should be set up to teach people how to handle various personnel problems in the light of this newly formulated policy.

7. Evaluating the Policy: From time to time the policy should be evaluated in terms of experience of those who use it and of those who are affected by it. There may be situations when an organisation is not getting the expected results.

EFFECTS OF HR POLICY ON ORGANISATION Incentive Pay If your HR department plans ahead, you can use bonuses to boost productivity. The planning helps determine a budget for bonuses, as well as which positions to offer them to in order to get the most benefit from essential tasks. Take care that your HR department doesn't provide bonuses to employees simply for doing their jobs. Bonuses for extra work or improved productivity will give employees incentives to work harder or more efficiently. Have HR show the bonuses on paychecks separately from regular wages so that employees understand this is extra pay for extra effort and not something they are entitled to regularly.

Specialization The HR department must either recruit employees with the technical skills necessary for the business or create training programs to foster those skills among existing employees. Failure to plan for technical proficiency can leave the company lacking essential competencies it needs to compete. Conversely, effective HR planning can keep the company on the cutting edge of technical proficiency and position it to capture market share through superior execution of essential tasks.

Cross Training The HR department can promote employment competency in more than one job. By providing training, the company can have employees who are able to switch departments and do tasks on an as-needed basis. This is particularly useful when you are temporarily ramping up production for a new client or engaging in an activity that will not require a full-time employee year round. HR must plan ahead to train for such tasks.

Teamwork

Careful planning in assigning employees to teams helps increase productivity. This is both a managerial and an HR skill. Managers must monitor teams to see that they remain on task. The HR department can assist in assessing which skill sets individuals have and determine how they may contribute to an effective team effort. In fact, HR can plan ahead for teams it knows the company will need and either hire or train so that the necessary skill sets are available when the need for the team arises.

This requires modifications in the policies. Any serious difficulty with a policy along with suggestions should be reported to the top management. Such knowledge will enable the management to decide whether there is a need to restate or reformulate the policy.

EFFECTS OF HR POLICY ON EMPLOYEES Employee Base The employee base, or the number of workers the company employs, often determines the workplace culture. Large organizations that employ several hundred or thousands of workers must have a more bureaucratic culture than small businesses. Employees of small businesses with fewer workers often have collegial and friendly relationships, not just with their peers, but with the company's leadership as well. Therefore, the HR policies for a small entity are vastly different than the process-oriented policies that large employers must implement. In fact, even attempting to implement HR policies that mimic those of a large organization can be off-putting for employees of small businesses.

Organizational Structure The very nature of a matrix organizational structure lends itself to less structured HR policies than a strict hierarchical structure found in many large corporations. Employees who work in a matrixstructured workplace typically have dual reporting relationships, although only one may be the formal supervisor-employee relationship. For example, an accounting manager might supervise an office manager for matters involving accounting, billing and invoicing, but the office manager also may have direct oversight by the company's owner on non-finance matters, such as recruiting and hiring. Employees may utilize different skill sets in more than one area of the business, working cross-functionally to achieve the company's goals. Implementing HR policies depends on what the organizational structure can support and whether the policies are actually conducive to the culture.

Climate

Employee perception is key to workplace climate, according to Maggie Walsh, psychologist and head of the leadership practice group for global consulting firm Forum. Workplace climate is determined by how employees feel about their employers' openness, integrity and appreciation for their talents. Climate is easy to alter just by establishing clear goals, evaluating performance, and supporting a team philosophy, says Walsh in her March 2012 Training magazine article, "6 Management Practices for Affecting Workplace Climate." Likewise, HR policies for an organization that has a positive workplace climate are likely to be more fully embraced than HR policies that strictly govern a work environment with little room for interpretation.

Location Location and industry influence workplace culture, and thus, HR policies. Policies for an Internet startup in Silicon Valley may be entirely different from the HR policies for a Wall Street brokerage house. The technology mecca of the United States is known for its casual work environments with forward-thinking, progressive employees, while the Wall Street brokerage firm might be described as a high-brow business environment where formality is much preferred over the informal camaraderie and congenial work space on the West Coast. Consequently, the HR policies for the California workplace will differ significantly from those of the New York office.

list of HR policies Remuneration and selection Performance appraisal Training and development Career planning Induction Fringe benifits Hr planning and forecasting Reward and recognition

PRINCIPLES OF HR POLICY

Principle of individual development to offer full and equal opportunities to every employee to realize his/her full potential

Principle of scientific selection

to select the right person for the right job.

Principle of free flow of communication to keep all channels of communication open and encourage upward, downward, horizontal, formal and informal communication.

Principle of participation to associate employee representatives at every level of decision-making.

Principle of fair remuneration to pay fair and equitable wages and salaries commensurating with jobs.

Principle of incentive to recognize and reward good performance.

Principle of dignity of labour to treat every job and every job holder with dignity and respect.

Principle of labour management co-operation to promote cordial industrial relations.

Principle of team spirit to promote co-operation and team spirit among employees.

Principle of contribution to national prosperity to provide a higher purpose of work to all employees and to contribute to national prosperity.

VARDHMAN PROFILE Vardhman Group is a leading textile conglomerate in India having a turnover of $700 mn. Spanning over 24 manufacturing facilities in five states across India, the Group business portfolio includes Yarn, Greige and Processed Fabric, Sewing Thread, Acrylic Fibre and Alloy Steel. Vardhman Group manufacturing facilities include over 8,00,000 spindles, 65 tons per day yarn and fibre dyeing, 900 shuttleless looms, 90 mn meters per annum processed fabric, 33 tons per day sewing thread, 18000 metric tons per annum acrylic fibre and 100,000 tons per annum special and alloy steel. Vardhman has evolved through history from a small beginning in 1965 into a modern textile major under the dynamic leadership of its chairman, S.P.Oswal. His vision and insight has given Vardhman an enviable position in the textile industry. Under his leadership, Vardhman is efficiently using resources to innovate, diversify, integrate and build its diverse operations into a dynamic modern enterprise

MISSION OF VARDHMAN Vardhman aims to be world class textile organization producing diverse range of products for the global textile market. Vardhman seeks to achieve customer delight through excellence in manufacturing and customer service based on creative combination of state-of-the-art technology and human resources. Vardhman is committed to be responsible corporate citizen.

VISSION “To be globally recognized as a Leading Supplier of Quality Fabrics”

PORTFOLIO OF VARDHMAN Yarns Yarn Manufacturing is the major activity of the group accounting for 47 percent of the group turnover. Vardhman is virtually a supermarket of yarns, producing the widest range of cotton, 13 synthetics and blended, Grey and Dyed yarns and Hand Knitting Yarns, in which Vardhman is the market leader in India. The group has twenty one production plants with a total capacity of over 8 lacs spindles, spread all over the country. In many of the yarn market segments, Vardhman holds the largest market share. Vardhman is also the largest exporters of yarn from India, exporting yarns worth more than USD 150 million. Sewing Thread Vardhman is the second largest producer of sewing thread in the country. The sewing thread manufacturing capacity is being expanded from 17 tons per day to 33 tons per day in its sewing thread plants located at Hoshiarpur, Baddi and Ludhiana. Sewing threads contributes 11 percent of the group turnover. Fabrics the group has created state-of-the-art fabric weaving and processing facilities in its plant at Baddi, Northern India. The group has installed 900 shuttle less looms and a fabric processing capacity of 90 million meters per annum in collaboration of Tokai Senko of Japan. Fabrics business contributes 22 percent to the group turnover Fibre The group has set up an Acrylic Staple Fibre plant at Bharuch in Gujarat in collaboration with Marubeni and Japan Exlan of Japan. The plant has annual capacity of 18000 tons per annum. Fibre contributes 8 percent to the total turnover of the group. Steel The Group is also present in upper-end of the steel industry. The group has manufacturing capacity of 100000 tons of special and alloy steel. The group supplies its steel products to some of the most stringent quality steel buyers like Maruti and Telco. It contributes 10 percent to the total turnover of the group.

OBJECTIVES OF STUDY

1 To study the hr policies of the company. 2 to study the amendements made in hr policies of Vardhman in the time of incorporation . 3 to incorporate the amendements in base policy and made a final policy 4 to design a hr policy manual for the company with a special emaphises on managerial service condition.

SCOPE OF STUDY 1 In any organization human resource is the most important asset. In today’s current scenario, VARDHMAN is a very large manufacturer and marketer of woollen mills. 2. As most of the company’s overall performance depends on its employee’s performance which depends largely on the HR POLICIES of the organization. 3. So the project has wide scope to help the company to perform well in today’s global competition. 4. The core of the project lies in analyzing and assessing the organization and to design an HR POLICY manual for the organization.

HR POLICIES IN VARDHMAN OBJECTIVES

1 Ensure a high degree of selectivity in recruitment so as to secure super achievers and nurture them to excel in their performance. 2 Impart such induction, orientation and training as to match the individual to the task and inculcate a high sense of organizational loyalty. 3 Provide facilities for all round of growth of individual by training in and outside the organization, reorientation, lateral mobility and self-development through selfmotivation. 4 Groom every individual to realize his potential in all facets while contributing to attain higher organizational and personal goals. 5 Build teams and foster team-work as the primary instrument in all activities. 6 Recognize worthy contributions in time and appropriately, so as to maintain a high level of employee motivation and morale. Appraisals and promotions shall be ethical and impartial. 7 Implement equitable, scientific and objective system of rewards, incentives and control. 8 Contribute towards health and welfare of employees.

EXPLANATION OF HR POLICIES IN VARDHMAN

1 RECRUITMENT POLICY In Vardhman , recruitment and selection of personnel is explicitly based on the criteria of their knowledge, skills and attitudes, so as to secure super achievers and nurture them to excel in their performance All fresh candidates are absorbed only after satisfactory completion of appropriate training. 2 All direct recruitment is through the HR department. 3 Detailed selection procedures as decided from time to time are adhered to without any compromise. 4 Above procedures shall undergo continuous refinement through evaluation and feedback. 2 JOB ROTATION POLICY 1 At Vardhman facilities are provided for all-round growth of individuals through lateral mobility. This shall enhance their employability as well as equip them to shoulder higher responsibilities. 2 Systematic Job Rotation from time to time shall have a revitalizing effect on the individual as well as the organization. 3All promotions to the level of HODs will be considered only when an individual has undergone rotation through at least 2 sections. 3 INDUCTION AND PLACEMENT POLICY

1 At Vardhman Group, new recruits imparted such induction, orientation, training and placement so as to individuals to the task and inculcate a high sense of organizational loyalty. 2 The HRD Department and the concerned heads of parent departments prepare a well-structured Induction Program to acquaint the new recruits with the people, organizational structure, and interface between different departments, functions and culture of the organization. 3 The Induction Program is formulated to suit the position of the candidate and necessary to be provided to him. 4 PERFORMANCE APPRAISAL POLICY 1 Performance Appraisal grooms every individual to realize his potential in all facets by helping to identify and achieve his personal goals within the framework of organizational objectives. 2 Appraisals shall be ethical and impartial so as to recognize worthy contributions appropriately and in time in order to maintain a high level of employee motivation and morale. 3 The Performance Appraisal Systems aims at integration of individual and organizational goals.

5 COUNSELLING 1 Counseling sessions, which are conducted by HR Department OR Professional Counselor OR Performance Appraiser, are available to all the employees in order to fulfill the following objectives: 2 To enhance employees’ competence and job satisfaction. 3 To prepare employees for future responsibilities. 4 To establish a better working relationship between the superior and subordinate. 5 To enable employees to cope with personal problems. 6. CAREER PLANNING POLICY 1 Career Planning system in Vardhman Group is aimed at developing people of the right caliber to meet present and future needs of the organization. It shall be an essential ingredient for Succession Planning. 2The mandatory factors to be considered prior to career planning shall be: 3 The organization’s long and short term plans. 4 Manpower skills required towards implementing these plans.

5 Attrition rate of people with high potential, above average and average caliber. 6 Recruitment through internal and external sources at all levels and its ratio as appropriate to the organization 7 The number of people recruited and trained every year.

7 SUCCESSION PLANNING POLICY 1 HODs and above identify successors, primary and secondary, to his position at the time of annual appraisal. This is reviewed every year along with the annual appraisal.

8 TRAINING AND DEVELOPMENT POLICY 1 At Vardhman Group, training and development activities strive to ensure continuous growth of organization by nurturing the strengths of the employees and providing the environment and opportunity for every individual to realize his/her potential. 2 The policy aims at broadening the outlook of the individuals and bringing the gap between actual performance and the performance necessary to deliver results. 3 Facilities are provided to all individuals towards self development and all round growth through training.

4HR Department identifies average performers and provide special training. 9 HUMAN RESOURCE INFORMATION MANAGEMENT SYSTEM 1 Human Resource Information Management Systems (HRIMS) aims at: a.Providing accurate information about employees to management for decision making. b.Eliminating duplication of efforts. c.Offering quick and easy access to human resource information at random as well as in regular report form. 2 The system has two layers of security. Access to the system is through keying in the valid combination of username and password. Permission to access certain programs is restricted to identify key personnel. 3 An integrated employee database is maintained and continuously updated with information from personnel at regular intervals regarding biographical data, work experience, qualifications, appraisal, training and career paths.

10.RETIREMENT PLANNING At Vardhman Group, retirement of all individuals is aided through planned programs by HR Department so as to lessen the associated misgivings and anxiety. 11.JOB ENRICHMENT Vardhman Group follows a people centered approach to job enrichment with a view to enhance the performance of the employee, leading to higher job satisfaction. 12. EXIT INTERVIEWS 1 The organization has a regular turnover of employees due to various reasons such as retirement, voluntary retirement, and resignation etc. from time to time. Feedback is obtained from the employee on occasions of separation from the organization. Such feedback on matters that effect well being of the people is useful in improving the organization in respect of HR Policies and practices.

The HR Policy Manual (or Managerial Service condition Manual) was designed in order to facilitate the mangers in gathering the information regarding the various service conditions that are offered by the organization. This manual includes the service conditions which are most frequently asked for. The various services conditions included are

1Provident Fund 2.Gratuity 3.Privilege Leave 4.Superannuation Scheme 5.Medical Reimbursement & Hospitalization 6.Dental Policy 7.Group Accident Insurance Scheme 8.Housing Loan Scheme 9.Vehicle Loan Scheme 10.Phone Policy 11.Leave Travel Assistance (LTA) 12.Local Conveyance Rules 13.Transfer Policy 14.HRR Policy for Area Office Managers 15.Canteen Service 16.Cash Payments & Advance Settlements 17.Performance Excellence Scheme 18.Performance excellence Form 19.Parivar Suraksha Yojna 20.Policy for Get Together of Employees

21.Notice Period for Managerial Employees 22.Conveyance Reimbursement for Interview Candidates 23.Car Policy 24.Post Retrial Benefits 25.Inland Travel Rules 26.Foreign Travel Rules 27.Application for Housing Loan 28.Application for Car Loan 29.Application for 2-wheeler Loan 30.Application for 2-wheeler (wards) Loan

RESEARCH METHODLOGY 1 METHOD OF DATA COLLECTION : SECONDARY DATA Data Collection Methodology Secondary Data The data used in the research was the secondary data. As last year’s and current year’s files were provided through which all the research part was done. An extensive research over the internet helped in obtaining appreciatively relevant information on the market for Vardhman group of companies and for the market scenario of finance and the insurance.

Study type The study begins with secondary data of the companies records in the exploratory phase, followed by the company’s profile, HR POLICIES , in depth knowledge about the policies , the procedures, the claims procedures and cover note.

 HYPOTHESIS OF PROJECT 1 human resource policies provided by the organisation of employees work as an agent for the groth of the employees and also motivates the employees to perform well ie employee performance and satisfaction is the valuable outcome of sound HR policies of the organisation. 2 the various HR policies in Vardhman makes the employee enthusiastic towards the work.