Summer Internship Report.docx

SUMMER TRAINING PROJECT REPORT ON “HUMAN RESOURCE MANAGEMENT”

Submitted in partial fulfilment of the requirements for the award Of the degree of MANAGEMENT OF BUSINESS ADMINISTRATION Batch(2017-2019)

UNDER THE GUIDANCE OF:

SUBMITTED BY:

MS. MAITRI

TANYA KATIYAR MBA 3RD SEM 08015103917

Management Education and Research Institute 53, 54, Janakpuri Institutional Area, Janakpuri, New Delhi, Delhi 110058

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ACKNOWLEDGEMENT

“Acknowledging the debt is not easy for us as we are indebted to so many people”. I take this opportunity in expressing the fact that this project report is the result of incredible amount of encouragement, co-operation, and moral support that I have received from others. Words alone cannot express my deep sense of gratitude to Ms Priya Dhariya, who provided me an opportunity to be a part of India Infolinefor my training. Her valuable guidance & support made this project work an enlightening educational experience.

I would also like to express my gratitude from the core of my heart to my Mentor MS. Maitri, who helped me in coordinating my entire project. Their consistent support and cooperation showed the way towards the successful completion of project.

I would like to express my deep sense of gratitude to all the employees’ of IIFL, who directly or indirectly helped me during my project work.

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EXECUTIVE SUMMARY

This is an attempt to know how the theories can be applied to practical situation. As a Student of MBA, it is a part of study for everyone to undergo summer project at some good institute or organization. So for this purpose, I got the opportunity of summer internship at INDIA INFOLINE PREMIA. During my internship I gained practical knowledge on how the human resource division of an organization operates and coordinates its activities to ensure smooth functioning of the organization at all levels by ensuring right numbers of people are available at the right time to do the right job. Not only that I have also gained insight into the working culture of the organization and observed how IIFL handles its employees with value and empowerment to ensure they are motivated to give their best to the organization. The report starts with an organization profile of IIFL giving its background, mission, vision, its products and services, the hierarchy and organogram of the organization. The next section is comprises the project, Human Resource Management in IIFL. The project encompasses introduction to the topic, recruitment, selection, training and development. Each chapter contains detailed discussion of the HR functions followed by Organization Practice at IIFL which basically conveys how things are done in the HR Department. Hiring comes at point of time in the picture. Hiring is a strategic function for HR department. Recruitment is the systematic process of generating a pool of qualified applicant for organization job. The process includes the step like HR planning attracting applicant and screening them. This step is affected by various factors, which can be internal as well as external. IIFL makes use of various methods and sources for this purpose. Recruitment should be strategic process that connects candidates who need what you have offer and who possess the skills and aptitude to accomplish your goal and objectives. Recruitment is not a magical process of having people sign up, but is one of the most critical aspects of operating your program. The recruitment unit is dedicated to recruiting and selecting qualified candidates for appointment. This process includes administering all testing phases from the written examination up until applicants are appointed.

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TABLE OF CONTENT CONTENT Executive Summary Chapter 1: Organization Introduction Scope of the Report Objective of the Report Sources of Information Limitations Chapter 2: Organization Profile Organization Background Key facts about IIFL Organization Vision Organization Mission Goal of IIFL Values Services Strategic Objectives of IIFL Organizational Structure Chapter 3: Overview of HR Division Human Resources Management HR Function Chapter 4: HRM of IIFL Units of HR Division HR Staffing HR Operations Training & Development Chapter 5: Company Analysis SWOT Analysis Data analysis and interpretation Findings of the study Conclusion Recommendation & suggestions

PAGE NO. 3 5 5 5 6 6 6 7 8 9-12 13-14 15 16 16 17 17 17 18 19 20 21 22-27 28-30 31-35 36-38 39 40-45 45-47 47-52 52-58 58-59

Chapter 6: Annexure Questionnaire Bibliography

60 61-62 63

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CHAPTER: 1 Human Recourse Practices at INDIA INFOLINE PReMIA 1.1 Introduction I have select the topic of this report is “Human Resource Management of IIFL”. I tried to integrate my theoretical knowledge of HR and combine it with practical examples as observed during my internship. I have tried to cover all the major functions of Human Resource Management- recruitment, selection, compensation and benefits, training and development and convey my understandings of the different functions of Human Resource Management through this project. At the end of the report I have done a SWOT Analysis on the HRM Practice of IIFL followed by discussing critical points. I have also tried to provide some recommendations based on my knowledge followed by the conclusion which I gathered during my internship. 1.2 Scope of the Report This report has been prepared through extensive discussion with company employees. Prospectus provided by the company also helped in preparing the report. At the time of preparing the report, I had a great opportunity to have in depth knowledge of all the investment activities practiced by the IIFL. 1.3 Objective of the Report There have been some objectives set forward in doing this report so that it can be determined what tasks have to be done. The objectives of the report are:  To familiarize with the IIFL, its operation and activities, management style and endeavour to realized the gap between the theoretical knowledge with the real business world.  Analyse the current performance appraisal format & compensation.  Identifying inherent problems associated with the format.  Propose changes mainly in the guidelines, format and management philosophy by keeping relevance with other processes.  Employee Personnel practice.  Developing Employees practices. 1.4 Sources of information All the information incorporated in this report has been collected from primary sources as well as secondary sources. Primary sources:   

Interview with assistant manager of administration & HR-In Charge Operations manager and some other employees Discussion sessions with senior officers as well

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Secondary Sources:   

Job description for each employees of IIFL, HR Division. Performance appraisal format Performance appraisal guideline provided by the Human Resources division

1.5 Limitations     

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Limitation of employment personal. Lack of practices in human resource management. Human resources department was hesitant to provide information, because of difficulty in accessing sensitive data and information. Non-availability of some previous statistical data. The term of the internship period is brief time whereas Human Resources Division is a vast area, after doing the regular office works from 9:30 AM to 6:00 PM it is difficult to go through in depth within this short duration of time. The secondary source of information was not enough to complete the report. Confidentiality.

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CHAPTER: 2 ORGANIZATION PROFILE

Non-Banking Financial Companies (NBFC’S) We usually study about banks, apart from the banks the Indian financial system have a large number of privately owned, decentralised and small sized financial institutions known as NBFCs. In recent times, the NBFCs have contributed to the Indian economic growth by providing deposit facilities and specialised credit to certain segments of the society such as unorganised sector and small borrowers. NBFCS provide financial services like hire purchase, leasing, loans, investments. NBFCs can be classified into deposit accepting companies and non-deposit accepting companies. NBFCs are small in size and are owned privately. The NBFCs have grown rapidly since 1990. They offer attractive rate of return. They are fund based as well as service oriented companies. Their main companies are banks and financial institutions. According to RBI act 1934, it’s compulsory to register NBFCs with the reserve bank of India. NBFCs are heterogeneous group of Finance companies means all NBFCs provide different types of financial services. NBFCs constitute an important segment of the financial system. NBFCs supplement the role of the banking sector in meeting the increasing financial need of the corporate sector, delivering credit to the unorganised sector and to small local borrowers. NBFCs have more flexible structure than banks. As compared to banks, they can take quick decisions; assume greater risks and tailor – make their services and charge according to the needs of the clients. There flexible structure helps in broadening the market by providing the saver and investor a bundle of services on a competitive basis. NBFCs at present providing financial services partly fee based and partly fund based. There fee based services include portfolio management, issue management, loan syndication, merger and acquisition, credit rating etc. Their asset based activities include venture capital financing, housing finance, equipment leasing, hire purchase financing factoring etc. In short they are now providing variety of services. NBFCs differ widely in their ownership; some are subsidiaries of large manufactures ( T.V motors, and T.V finances and services ltd). Many others are owned by banks such as ICICI banks, ICICI securities ltd, SBI capital market ltd, Muthoot bankers, Muthoot financial services ltd a key player in Kerala financial services. NBFCs carry out financing activities but their resources are not directly obtained from the savers as debt. Instead, these institutions mobilize the public savings for rendering other financial services including investment. All such institutions are financial intermediaries and when they lend, they are known as a non-banking financial intermediaries (NBFIs) or investment institutions.

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IIFL (formerly known as India Infoline Limited), is an Indian diversified financial services company headquartered in Mumbai. The organisation was founded by Nirmal Jain. IIFL and its group companies are backed by Canadian investor Prem Watsa, private equity firm General Atlantic and CDC Group, the UK Government's private equity arm. IIFL is ranked among the top seven financial conglomerates in India and as the top independent financial services firm in India in terms of market capitalisation. Nirmal Jain is the Chairman of the group, while R Venkataraman is the Group Managing Director and Co-Promoter. IIFL was founded on Oct 17, 1995 by Nirmal Jain , a 1986 graduate from University of Mumbai and an alumnus of Indian Institute of Management, Ahmedabad. Jain is among the few successful entrepreneurs post the economic liberalisation era in India ushered by PV Narasimha Rao. Jain was previously employed with Hindustan Lever Limited. The company was founded as Probity Research and Services Private Limited which provided research on the Indian economy, businesses and corporates. The name was later changed to India Infoline Limited. A few years into the business, the organisation found itself with clients who included research organisations, banks and corporates. They then began launching their research products to become more noticeable in the market. In the meanwhile, the dotcom revolution was beginning to take place in India. The website was created in 1999. Taking the business one step ahead this group of consultants opened a trading portal – www.5paisa.com –in 2000 thus moved into the business of being a full service broking agency. During this time they widened their distribution network. In 2001, the Indian dotcom industry saw a downfall. During this time, sustaining became tough. The organisation then decided to tie-up with leading Life Insurance company ICICI Prudential, thus putting to use its distribution network and becoming India's first corporate agent for insurance. Today, IIFL Holdings Limited (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: 532636) is India’s leading integrated financial services group with diverse operating businesses, mainly Non-Banking and Housing Finance, Wealth and Asset Management, Broking, Financial Product Distribution, Investment Banking, Institutional Equities, Realty and Property Advisory Services. IIFL Holdings has a consolidated net-worth of over Rs 45 billion; global presence in Canada, United States, UK, Singapore, Hong Kong, Switzerland, Mauritius, and UAE; An employee workforce of over 10,500, a strong network of over 2,250 service locations spread across India, over Rs 233 billion loan assets under management; over Rs 1,250 bn wealth assets under advice, management and distribution; over 500 stocks under research and more than 300 of the world’s top institutional investors relying on IIFL's research. IIFL is a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology. Equities IIFL is a member of BSE and NSE registered with NSDL and CDSL as a depositor y participant and provides broking services in the cash, derivatives and currency segments, online and offline. IIFL is a dominant player in the retail as well as institutional segments of the market. It recently became the first Indian broker to get a membership of the Colombo Stock Exchange and is also the first Indian broker to have received an in-principle approval for membership of the Singapore Stock Exchange. IIFL’s Trader Terminal, its proprietary trading platform, is widely acknowledged as one of the best available for retail investors. Investors opt for IIFL given its unique combination of superior Service, cutting-edge proprietary Technology, Advice powered by world-acclaimed research and its unparalleled Reach owing to its over 2500 business locations across over 500 cities in India.

IIFL received the BQ1 broker grading (highest grading) from CRISIL. The assigned grading reflects an effective external interface, robust systems framework and strong risk management. The grading also reflects IIFL’s healthy regulatory compliance track record and adequate credit risk profile. IIFL’s analyst team won Zee Business’ ‘India’s best market analysts awards – 2009’ for being the best in the Oil and Gas and Commodities sectors and a finalist in the Banking and IT sectors. IIFL has rapidly emerged as one of the premier institutional equities houses in India with a team of over 8

25 research analysts, a full-fledged sales and trading team coupled with an experienced investment banking team. The Institutional equities business conducted a very successful ‘Enterprising India’ global investors’ conference in Mumbai in March 2010, which was attended by funds with aggregate AUM over US$5 trillion and CEOs and other executives representing corporates with a combined market capitalization of over US$500 billion. The ‘Discover Sri Lanka’ global investors’ conference, held in Colombo in July 2010, was attended by more than 50 leading global and major local investors and 25 Sri Lankan corporates, along with senior Government officials. IIFL Wealth Management Ltd. is a subsidiary of IIFL Holdings Ltd. formerly known as India Infoline Limited. IIFL Private Wealth was formed when a group of senior professionals with significant Private Banking experience joined hands with India Infoline Group and started operations in April 2008. During that time trust and reliability were scarce as the financial turmoil had left the investors jittery and confused. The initial years required the team to put in extra efforts to assuage the fears of the investors and prove that even in tough times they could count on the firm for information and support. The three pillars on which IIFL Wealth is based on:

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Employee Ownership is the cornerstone of the ensuing partnership: Employees own up to 24% of the company and the sponsoring parent India Infoline owns the remaining 76%

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Alignment of Interests: Employees are able to take a long-term view on the firm and its clients, as their emoluments are linked more to stock options and ownership as opposed to annual incentive pay-outs

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Innovation: Innovations such as fixed fee structures, pricing of Structured Products at par, independent fixed-income trading desk, have helped the team sit on the same side of the table as the client, at the same time gain market share.

Over the years we have built a practice based on the principles of modesty, simplicity & client centricity. This has helped us to be firmly rooted on the side of the client. IIFL is a financial services conglomerate which was started by a group of passionate entrepreneurs in 1995. The genesis of IIFL lies in the power of dreaming big and believing in your dreams. IIFL was the pioneer in the retail broking industry with its launch of 5paisa trading platform which offered the lowest brokerage in the industry and the freedom from traditional ways of transacting. Our strength has been to continuously innovate and reinvent ourselves. IIFL’s evolution from an entrepreneurial start-up in 1995 to a full range diversified financial services group i s a story of steady growth by adapting to the dynamic business environment, without losing focus on our core domain of financial services. Today, IIFL Holdings Limited (Bloomberg Code: IIFL IN, NSE: IIFL, BSE: 532636) is India’s leading integrated financial services group with diverse operating businesses, mainly, Non-Banking and Housing Finance, Wealth and Asset Management, Financial Advisory and Broking, Mutual Funds and Financial Product Distribution, Investment Banking, Institutional Equities, Realty Broking and Advisory Services. IIFL serves more than 4 million satisfied customers across various business segments and is continuously building on its strengths to deliver excellent service to its expanding customer base.

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IIFL’s VISION & VALUES

IIFL’s MISSION 2020 From an entrepreneurial start-up in 1995, we have steadily grown to emerge as one of India’s leading financial services group. Ever since our inception, our strategy has been to align our capabilities and market insights to the country’s rapidly changing business environment. Our growth trajectory has only served to reinforce our focus on our domain of financial services.

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IIFL Holdings Ltd is divided into 9 companies: 1

IndiaInfoline Ltd.

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IndiaInfoline Finance Limited: IndiaInfoline housing Finance Limited is under this company.

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IndiaInfoline Insurance brokers Ltd.

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IndiaInfoline Commodities Ltd.

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IIFL Assets management company & IIFL MF

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IIFL Private Wealth management Ltd.

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IIFL (Asia) Pte Ltd.

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IIFL Inc. (US) investment Advisors Ltd.

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IIFL (UK)

10 IIFL Multi National Company

CORPORATE STRUCTURE:

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IIFL PReMIA: Priority Relationship Management & Investment Advisory (PReMIA) PReMIA is a multi-product, customized financial environment which aims to generate superior returns for IIFL's preferred clients, by investing across varied asset classes. With PReMIA, you have access to a team that's vastly experienced and trained in different aspects of the stock market, assuring you a multi-faceted opinion for all your financial queries. Adjudging your risk profile, setting investment goals, chalking out strategies to attain all long term and short term financial objectives are just a few of the duties that we take care of. Our dedicated relationship managers & investment advisors work tirelessly studying market, presenting new opportunities, evaluating and interpreting them so that you get the best of every opportunity. Platinum class research, dedicated customer service teams coupled with easy access and complete account transparency make PReMIA a unique experience for all our Priority Clients.

The PReMIA Team: IIFL have a team of dedicated Relationship Managers and experienced Investment Advisors make sure that investor’s money is invested in the best investment avenues depending on your future financial goals. IIFL ensure that they have none but the best people servicing investor’s. IIFL’s Relationship Managers and Investment Advisors are MBAs / CAs / CFAs, who come with a rich experience in Wealth Management / Private Client Group Broking / Priority Banking. They have sound knowledge of Financial Products and most importantly place their clients before everything else.

PReMIA Infrastructure:       

IIFL PReMIA has 23 branches across India to cater to your financial requirements 24*7 We have state-of-art Dealing Rooms Robust back-end systems Dedicated team of Analysts Fund Management expertise Product Desk to provide customized products which are a combination of Equity and Debt Desk for International Equity

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PRODUCTS: Commodities: IIFL offers commodities trading to its customers vide its membership of the MCX and the NCDEX. Our domain knowledge and data based on in depth research of complex paradigms of commodity kinetics, offers our customers a unique insight into behavioural patterns of these markets. Our customers are ideally positioned to make informed investment decisions with a high probability of success.

Credit and finance: IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans, margin funding, and loans against shares) comprise 94% of the loan book. The Company has discontinued its unsecured products. It has robust credit processes and collections mechanism resulting in overall NPAs of less than 1%. The Company has deployed proprietary loan-processing software to enable stringent credit checks while ensuring fast application processing. Recently the company has also launched Loans against Gold.

Insurance: IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance Co. Ltd.’s corporate agent. Later, it became an Insurance broker in October 2008 in line with its strategy to have an ‘open architecture’ model. The Company now distributes products of major insurance companies through its subsidiary India Infoline Insurance Brokers Ltd. Customers can choose from a wide bouquet of products from several insurance companies including Max New York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life, Birla Sun life, Life Insurance Corporation, Kotak Life Insurance and others. Wealth Management Service IIFL offers private wealth advisory services to high-net-worth individuals (HNI) and corporate clients under the ‘IIFL Private Wealth’ brand. IIFL Private Wealth is managed by a qualified team of MBAs from IIMs and premier institutes with relevant industry experience. The team advises clients across asset classes like sovereign and quasi-sovereign debt, corporate and collateralised debt, direct equity, ETFs and mutual funds, third party PMS, derivative strategies, real estate and private equity. It has developed innovative products structured on the fixed income side. It also has tied up with Interactive Brokers LLC to strengthen its execution platform and provide investors with a global investment platform. Investment Banking IIFL’s investment banking division was launched in 2006. The business leverages upon its strength of research and placement capabilities of the institutional and retail sales teams. Our experienced investment banking team possesses the skill-set to manage all kinds of investment banking transactions. Our close interaction with investors as well as corporates helps us understand and offer tailor-made solutions to fulfil requirements. The Company possesses strong placement capabilities across institutional, HNI and retail investors. This makes it possible for the team to place large issues with marquee investors. In FY10, the team advised and managed more than 10 transactions including four IPOs and four Qualified Institutions Placements.

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Equity: Equity trading is essentially the purchase or sale of company stock through one of the major stock exchanges, just as stock trading is. An equity trade can be placed by the owner of the shares, through a brokerage account, or through an agent or broker; again, similar to stock trading. Equity trading firms specialize in offering in-depth market research, trading expertise, unique trading systems (even algorithmic), and have direct access to the trading floor for better executions. IIFL offer a bouquet of Equity offerings suitable for high traders to long term investors, beginners to diverse class of capital market participants. We have a dedicated desk assisting clients on Asset allocation, trading strategies, portfolio optimization. Award winning research on Fundamental, Technical & Derivatives aimed at growing assets by outperforming market.

Derivatives: A derivative is a financial security with a value that is reliant upon or derived from an underlying asset or group of assets. The derivative itself is a contract between two or more parties based upon the asset or assets. Its price is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Derivatives can either be traded over-the-counter (OTC) or on an exchange. OTC derivatives constitute the greater proportion of derivatives in existence and are unregulated, whereas derivatives traded on exchanges are standardized. OTC derivatives generally have greater risk for the counterparty than do standardized derivatives. Extensive research coverage on strategies such as Hedging, Carry-overs, Spreads, etc., helps clients to balance the risk and rewards of derivative trading. Our experienced advisors support high traders to make most of this popular market segment.

Mutual Funds: A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. Mutual funds are operated by professional money managers, who allocate the fund's investments and attempt to produce capital gains and/or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. A mixture of comprehensive coverage of all mutual fund offerings and seamless execution of instructions. IIFL research and Mutual Fund trackers helps clients to navigate the ever growing market of MF Offers with outmost ease.

Structured Product: In structured finance, a structured product, also known as a market-linked investment, is a prepackaged investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance or foreign currencies, and to a lesser extent, derivatives. The variety of products just described is demonstrative of the fact that there is no single, uniform definition of a structured product. A feature of some structured products is a "principal guarantee" function, which offers protection of principal if held to maturity. 14

Customized Structures offering unique combination of coupons, market participation representing wide variety of Industry segment helps High Net worth Clients manage and preserve their wealth.

Life Insurance: Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses, such as funeral expenses, can also be included in the benefits. IIFL -one of the largest insurance brokers presents its clients with a bouquet of products across multiple service providers in most convenient manner. Our expertise in different classes along with Insurance completes a client's financial planning process.

SERVICES Dedicated Team: The highly experienced PReMIA team makes investment related decision-making much easier. Relationship Managers and Advisors constantly strive to add value in services by providing customized analytics and tools to meet clients’ unique requirements keeping in mind their risk taking abilities.

World-class Research made simple for our clients: IIFL PReMIA has a full-fledged research team involved in macro-economic studies, sectorial research and industry specific equity research covering Indian, emerging and global markets. Also, IIFL's 'Forbesacclaimed' world-class research team offers IQ (Insights Quick), a customized, premium research offering, tailor-made for PReMIA customers.

Easy Access and Complete Account Transparency: Access to online back office systems, charting tools, real time terminals and research mines – all integrated through an award winning trading platform. Now, keep track of your investments, anytime.

Dedicated Customer Service: IIFL PReMIA has a dedicated customer care service desk to ensure that all queries pertaining to your account, transaction details and fund status are clarified. Our experts are always keen on helping the Priority Clients take an informed decision as we understand the value of spotting an opportunity before others do.

Top-of-the-line Dealing Desk: More than 25 state-of-the-art Central Dealing Rooms deliver an unparalleled equity trading experience. Have the PReMIA edge with our expert teams handling all your investment worries.

Customized Investment Strategies: The IIFL PReMIA team employs advanced strategies for trading with customized products in Equity, MF, Structured and many more. Every step is backed by a centralized, real time Risk Management System with cutting edge technology.

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ANNUAL SUMMARY

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CHAPTER 3 OVERVIEW OF HR DIVISION What is human resource? Human resources is used to describe both the people who work for a company or organization and the department responsible for managing resources related to employees. The term human resources was first coined in the 1960s when the value of labour relations began to garner attention and when notions such as motivation, organizational behaviour, and selection assessments began to take shape. Human resources (HR) is the company department charged with finding, screening, recruiting and training job applicants, as well as administering employee-benefit programs. As companies reorganize to gain competitive edge, human resources plays a key role in helping companies deal with a fast-changing environment and the greater demand for quality employees.

A human resources department is an essential, if not critical, component of any business regardless of the organization's size. It is primarily focused on maximizing employee productivity and protecting the company from any issues that may arise from the workforce. HR responsibilities include compensation and benefits, recruitment, firing and keeping up to date with any laws that may affect the company and its employees. John R. Commons, a pioneering economist, first coined the term “human resource” in his book "The Distribution of Wealth," which was published in 1893. However, it was not until the 19th century when the term was developed to address misunderstandings between employees and their employers. The resource that resides in the knowledge, skills, and motivation of people. Human resource is the least mobile of the four factors of production, and (under right conditions) it improves with age and experience, which no other resource can do. It is therefore regarded as the scarcest and most crucial productive resource that creates the largest and longest lasting advantage for an organization.

Research conducted by The Conference Board has found six key people-related activities that human resources must effectively do to add value to a company. These are: 1. Effectively managing and utilizing people. 2. Tying performance appraisal and compensation to competencies. 3. Developing competencies that enhance individual and organizational performance. 4. Increasing the innovation, creativity and flexibility necessary to enhance competitiveness.

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5. Applying new approaches to work process design, succession planning, career development and interorganizational mobility. 6. Managing the implementation and integration of technology through improved staffing, training and communication with employees. HR departments are expected to perform human resource management (HRM) strategies. HRM is a strategic and comprehensive approach to managing employees and the organizational culture and environment. It focuses on the recruitment, management and general direction of the people who work in an organization. HR is also more involved in improving the organization’s workforce by recommending processes, approaches and business solutions to management. For example, in IKEA, HR shifted its focus on values and cultural fit rather than skills and experience in recruiting employees.

Outsourcing Human Resource Functions: The HR departments of large companies have been moving away from traditional personnel, administration and transactional functions since the start of the 20th century. These functions are increasingly outsourced to free the department to recommend and implement meaningful and value-adding programs that impact the business in positive ways. Functions typically outsourced include payroll administration, employee benefits, recruitment, background checks, exit interviews, risk management, dispute resolution, safety inspection and office policies. JP Morgan Chase & Co. had most of its core HR functions transferred to its sites in the Philippines. Emerson Electric Co. uses an online HR outsourcing company for its payroll services. Human resources (HR) are one of the most important “assets” of your business. The individuals who make up your organization go a long way toward driving its success, whether they are employees, managers, consultants or others. HR refers to the recruitment and management of personnel, in compliance with the law. Thus, the practice of HR requires knowledge of the laws that affect your workplace - at the federal, state and local levels. In addition to legal compliance, HR covers the art of managing your business internally.This challenge includes:             

Workforce Planning and Building Your Business Employee Orientation/ On boarding Motivating Employees Dealing with Stress Performance Reviews Health and Wellness Programs Employee Assistance Programs Compensation and Benefits Packages Support and Training Company Brand and Environment Job Analysis and Job Description Job Postings The Interview Process

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

What is human resource management? Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work. Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees. This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world. As Edward L. Gubman observed in the Journal of Business Strategy, "the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business. Those three challenges will never change." Until fairly recently, an organization's human resources department was often consigned to lower rungs of the corporate hierarchy, despite the fact that its mandate is to replenish and nourish what is often cited;legitimately-;as an organization's greatest resource, its work force. But in recent years recognition of the importance of human resources management to a company's overall health has grown dramatically. This recognition of the importance of HRM extends to small businesses, for while they do not generally have the same volume of human resources requirements as do larger organizations, they too face personnel management issues that can have a decisive impact on business health. As Irving Burstiner commented in The Small Business Handbook, "Hiring the right people-; and training them well-; can often mean the difference between scratching out the barest of livelihoods and steady business growth'¦. Personnel problems do not discriminate between small and big business. You find them in all businesses, regardless of size."

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT Business consultants note that modern human resource management is guided by several overriding principles. Perhaps the paramount principle is a simple recognition that human resources are the most important assets of an organization; a business cannot be successful without effectively managing this resource. Another important principle, articulated by Michael Armstrong in his book A Handbook of Human Resource Management, is that business 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." A third guiding principle, similar in scope, holds that it is the HR's responsibility to find, secure, guide, and develop employees whose talents and desires are compatible with the operating needs and future goals of the company. Other HRM factors that shape corporate culture-; whether by encouraging integration and cooperation across the company, instituting quantitative performance measurements, or taking some other action-; are also commonly cited as key components in business success. HRM summarized Armstrong, "is a strategic approach to the acquisition, motivation, development and management of the organization's human resources. It is devoted to shaping an appropriate corporate culture, and introducing programs which reflect and support the core values of the enterprise and ensure its success." 20

CHAPTER 4 HRM OF IIFL

POSITION AND STRUCTURE OF HUMAN RESOURCE MANAGEMENT Human resource department responsibilities can be subdivided into three areas: individual, organizational, and career. Individual management entails helping employees identify their strengths and weaknesses; correct their shortcomings; and make their best contribution to the enterprise. These duties are carried out through a variety of activities such as performance reviews, training, and testing. Organizational development, meanwhile, focuses on fostering a successful system that maximizes human (and other) resources as part of larger business strategies. This important duty also includes the creation and maintenance of a change program, which allows the organization to respond to evolving outside and internal influences. Finally, there is the responsibility of managing career development. This entails matching individuals with the most suitable jobs and career paths within the organization.

FUNCTIONS OF HRM

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      

Recruitment, selection & introduction Personnel administration Training & development Performance & reward management Talent management Succession & career planning Labour relations

RECRUITMENT: Recruitment refers to the process of sourcing, screening, and selecting people for a job or vacancy within an organization. Though individuals can undertake individual components of the recruitment process, mid and large size organizations generally retain professional recruiters. Recruitment is a process of seeking and attracting a pool of people in order to select qualified candidates for vacant positions within the organization. During recruitment process, organizations may use both internal and external sources to fill vacant positions. Internal recruiting is looking for candidates among employees already working in the organization. It involves techniques like job posting. In this method, notices about vacant positions are posted in central locations throughout the organization and employees are given a time to apply these positions. Another method used in internal recruiting is to seek recommendations from present employees regarding friends who might fill vacancies. External recruiting, on the other hand, seeks for candidates from outside the organization. The methods of external recruiting can be listed as follows; media advertisements, campus recruiting, working with employment agencies or executive search firms, using computer databases. 22

The recruitment process in India is designed in such a way that each candidate gets the desired profile according to its own choice. Place the candidate from the right profile, the best job recruitment agencies, the solution is the end of most Indian job recruitment agencies. The job recruitment agencies in India involves identifying those posts, preparing the job description and person specification, advertising, management of the response, the prequalification process, organizing meetings, conducting interviews, making decisions, the appointment and action. This means that a lot of time and resources must be invested before the right candidate is selected. Most recruitment agencies in India follow three stages in the recruitment process, which are essentially short list of application, preliminary assessment and final interview and selection. The recruiting India process may include a written test to judge the particular skills of a candidate. In this case, the test must be carefully prepared, not to deviate from the subject. Much can be found on the candidate's resume. A good presentation of his resume is in an organized way and refined talk a lot on the individual. His mentality and attitude can be judged according to his resume. Then the interview, which is an important and crucial part of the recruitment process. The person who takes the interview of the candidate must be well prepared in advance. Concerns such as the location of the interview, the timing, structure of the question of strategy, the style of taking the interview must be decided in advance, so that nothing is excluded, and all subjects properly treated. In addition, there are a number of things that must be taken into consideration in the recruitment process. Until the final decision about a certain candidate is taken, it is important to keep in regular contact with the candidate. The decision-making process should not take too long to prevent candidates from taking any other occasion. An applicant must be informed once the decision is made. He or she must say the entire process of his appointment clearly with the details of all documents to be submitted. A record should be kept of the candidate file for future reference.

The recruitment process must be strong and justified and shall withstand external scrutiny. Only a good job recruitment agency with a good understanding of the area and the process can execute the same success. In India, most of the recruitment agencies to understand the needs of clients and candidates and they work in a planned way to recruit people.

Sources of Recruitment There are two sources of Recruitment: 1. Internal Sources 2. External Sources

INTERNAL SOURCES: Internal recruiting is looking for candidates among employees already working in the organization. It involves techniques like job posting. In this method, notices about vacant positions are posted in central locations throughout the organization and employees are given a time to apply these positions. Another method used in internal recruiting is to seek recommendations from present employees regarding friends who might fill vacancies. Internal Sources consists of: 23



Job Posting and Bidding



Promotions and Transfers



Employee Referrals



Re-recruiting former Employees and Applicants



Internal Recruiting and Database

Advantages of Internal Sources: 

Morale of Promote



Better Assessment of Abilities



Lower cost for some Jobs



Motivator for Good Performance



Causes a Succession of Promotions



Have to hire only at entry level

Disadvantages of Internal Sources: 

Inbreeding



Possible morale problems of those not promoted



“Political” infighting for promotions



Need for Management-Development program

EXTERNAL SOURCES: External recruiting, seeks for candidates from outside the organization. The methods of external recruiting can be listed as follows; media advertisements, campus recruiting, working with employment agencies or executive search firms, using computer databases.There are several methods for external recruiting. The firm must carefully analyse the vacant positions and then use the method which best fulfils the requirement. External Sources consists of: 

School, Colleges and Universities



Labour Unions



Media Sources



Employment Agencies

Advantages of External Sources: 

New “blood” brings new perspectives



Cheaper and faster than training



Professionals



No group of political supporters in company 24



Organization already



May bring new industry insights

Disadvantages of External Sources: 

May not someone who will “fit” the job or organization



May cause morale problem for internal



Candidates not selected



Longer “adjustments” or orientation time.

OBJECTIVES OF RECRUITMENT AND SELECTION: 1. Hire the right person 2. Conduct a wide and extensive search of the potential positive candidates 3. Recruit staff members who are compatible with the organization’s environment or culture 4. Hire individuals by using a model that focuses on learning and education of the whole person 5. Place individuals in positions with responsibilities that will enhance their personal development

THE RECRUITMENT PROCESS: The main stages involved in recruitment process are: 1) 2) 3) 4) 5) 6) 7)

Understanding the job description Searching the right resume Contacting the candidates and offering the value proposition Telephonic interview Scheduling interview of the selected candidates Track candidates Follow up with selected candidates for joining formalities

8) Successful hire

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Selection: The recruitment process has a wide coverage as it collects the applications of interested candidates, whereas the selection process narrows down the scope and becomes specific when it selects the suitable candidates. Stone defines, ‘Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job’. A scientific and logical selection procedure leads to scientific selection of candidates. The criterion finalized for selecting a candidate for a particular job varies from company to company. Therefore, the selection procedure followed by different organizations, many times, becomes lengthy as it is a question of getting the most suitable candidates for which various tests are to be done and interviews to be taken. The procedure for selection should be systematic so that it does not leave any scope for confusions and doubts about the choice of the selected candidate.

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Selection process:

1. Inviting applications: The prospective candidates from within the organization or outside the organization are called for applying for the post. Detailed job description and job specification are provided in the advertisement for the job. It attracts a large number of candidates from various areas.

2. Receiving applications: Detailed applications are collected from the candidates who provide the necessary information about personal and professional details of a person. These applications facilitate analysis and comparison of the candidates.

3. Scrutiny of applications: As the limit of the period within which the company is supposed to receive applications ends, the applications are sorted out. Incomplete applications get rejected; applicants with un-matching job specifications are also rejected.

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4. Written tests: As the final list of candidates becomes ready after the scrutiny of applications, the written test is conducted. This test is conducted for understanding the technical knowledge, attitude and interest of the candidates. This process is useful when the number of applicants is large.Many times, a second chance is given to candidates to prove themselves by conducting another written test.

5. Psychological tests: These tests are conducted individually and they help for finding out the individual quality and skill of a person. The types of psychological tests are aptitude test, intelligence test, synthetic test and personality test

6. Personal interview: Candidates proving them successful through tests are interviewed personally. The interviewers may be individual or a panel. It generally involves officers from the top management. The candidates are asked several questions about their experience on another job, their family background, their interests, etc. They are supposed to describe their expectations from the said job. Their strengths and weaknesses are identified and noted by the interviewers which help them to take the final decision of selection.

7. Reference check: Generally, at least two references are asked for by the company from the candidate. Reference check is a type of crosscheck for the information provided by the candidate through their application form and during the interviews.

8.Medical examination: Physical strength and fitness of a candidate is must before they takes up the job. In-spite of good performance in tests and interviews, candidates can be rejected on the basis of their ill health.

9.Final selection: At this step, the candidate is given the appointment letter to join the organization on a particular date. The appointment letter specifies the post, title, salary and terms of employment. Generally, initial appointment is on probation and after specific time period it becomes permanent.

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10.Placement: This is a final step. A suitable job is allocated to the appointed candidate so that they can get the whole idea about the nature of the job. They can get adjusted to the job and perform well in future with all capacities and strengths.

Training & development: Human resource management regards training and development as a function concerned with organizational

activity

aimed

at

bettering

the job

performance of

individuals

and

groups

in organizationalsettings. Training and development can be described as "an educational process which involves the sharpening of skills, concepts, changing of attitude and gaining more knowledge to enhance the performance of employees". Training and development encompasses three main activities: training, education, and development.   

Training: This activity is both focused upon, and evaluated against, the job that an individual currently holds. Education: This activity focuses upon the jobs that an individual may potentially hold in the future, and is evaluated against those jobs. Development: This activity focuses upon the activities that the organization employing the individual, or that the individual is part of, may partake in the future, and is almost impossible to evaluate.

The "stakeholders" in training and development are categorized into several classes. The sponsors of training and development are senior managers. The clients of training and development are business planners. Line managers are responsible for coaching, resources, and performance. The participants are those who actually undergo the processes. The facilitators are Human Resource Management staff. And the providers are specialists in the field. Each of these groups has its own agenda and motivations, which sometimes conflict with the agendas and motivations of the others. The conflicts that are the best part of career consequences are those that take place between employees and their bosses. The number one reason people leave their jobs is conflict with their bosses. And yet, as author, workplace relationship authority, and executive coach, Dr. John Hooverpoints out, "Tempting as it is, nobody ever enhanced his or her career by making the boss look stupid." Training an employee to get along well with authority and with people who entertain diverse points of view is one of the best guarantees of long-term success. Talent, knowledge, and skill alone won't compensate for a sour relationship with a superior, peer, or customer. Once the employees are hired, they need to be trained. Human resource management is responsible for assessing the training needs of the employees. Not only the new joiners, but also the tenured employees need to be trained on the new technologies or other required skills after promotion. Many HR departments also provide leadership training and professional development. HR also arranges for the exams for the employees if required.

Performance Management and Reward Practices: Today organizations are showing a high degree of commitment towards reinforcement of reward practices which are aligned with other HR practices and the goals of the organization for attracting, retaining and 29

motivating employees. Efficient reward practices helps in attracting result driven professionals who can thrive and succeed in performance based environments. Hence, it is a crucial motivator and may contribute towards the enhancement of the productivity of the employees if implemented properly. An effective reward system should be linked with the performance development system, which focuses on performance based pay and offers ample learning opportunities along with a healthy work environment. Variable pay can play a crucial role in boosting the performance of the employees especially the star performers instead of the fixed pay packages. Few such reward practices may take the forms of gain sharing, bonuses, team based incentives, profit sharing, ESOP’s and equity based incentive awards. An efficient management of reward system may have a beneficial effect upon the performance in several ways - instilling a sense of ownership amongst the employees, may facilitate long term focus with continuous improvement, reduces service operating costs, promotes team work, and minimizes employee dissatisfaction and enhanced employee interest in the financial performance of the company. Few organizations like General Mills reward their employees for attaining new skills which may add value to the organizational performance and thereby facilitate job rotation, cross training and self-managed work teams. Few organizations also recognize exceptional performance by providing recognition awards and lump-sum merit awards for winning employee commitment and attaining long term beneficial results. Example, TISCO, offers instant or on the spot rewards, monthly rewards and annual rewards to its employees under its ‘Shabashi scheme’. A healthy pay for performance strategy should incorporate the following components as is provided in the table given below: Pay for Performance Strategy Category

Performance Measures

Corporate Leaders

BSC, shareholders returns and EVA Employee stock ownership and profit sharing.

Business Leaders

Basis for Rewards

Unit Profitability of the unit

Results Sharing.

Functional Leaders Level of contribution towards the Milestone Awards corporate goals General Employees Specific KRA’s achieved measured Profit/gain sharing, bonuses periodically Source: Sullivan E (1999), “Moving to a pay for performance strategy: Lessons from the Trenches”, In Risher, H (Ed.), Aligning Pay and Results, AMACOM: NY.

Today, variable pay is a very vital component in the reward practices of an organization and it differs across various sectors also. A table given below presents the trends in the usage of variable pay component across different sectors in two different years:

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Sector

2001 (Variable pay in %)

2005 (Variable pay in %)

Financial Services

19.2

23.5

Telecommunications

14

17.8

ITES

12.9

16.4

IT

10.9

13.7

Banking

13.5

23.2

Manufacturing

11

16.2

FMCG

13.3

16.5

Rewards can be a vital source of motivation for the employees but only if it is administered under right conditions. Few strategies which improve the effectiveness of rewards are given below:   

 

Linking rewards with the performance Implement team rewards for the interdependent jobs for example Xerox. Ensuring that the rewards are relevant. Example Wal-Mart, rewards bonuses to the top executives which are based on the company’s overall performance whereas the frontline employees earn bonus on the basis of the sales figure or targets attained by their store. Ensuring that the rewards are valued by the employees. Checking out for the undesirable consequences of administration of any reward practice.

Besides the monetary rewards, the contemporary employees desire for non-monetary rewards which may be in the form of better career opportunities, skills development and recognition programs. Many IT and project based organizations give much importance to non-monetary rewards for maximizing employee satisfaction.

Talent Management: Organizations which wish to attract the best of talents and retain employees across all levels must have an integrated approach to talent management. According to latest survey findings sources, about 85% senior executives view talent management as a major competitive differentiator for attracting and retaining skilled workforce and developing the highly talented leaders. Many Indian organizations have realized that it is the quality of people which they employ, retain and develop will ensure their business profitability and provide them a competitive advantage. Talent management is concerned with delivering business success by understanding what an organization actually means by talent and how it can achieve the long term organizational goals. It aims at ensuring that the organizations value natural talents and understand the obstructions to an effective performance. Talent management solution integrates the needs of the management, executives and employees into one system and unifies information across all the major HR processes like performance management, recruitment and selection, learning and development, succession planning and career development. According to a survey report of May 2006 from the Economist Intelligence Unit (EIU) and Development Dimensions International (DDI), maximum CEO’s from across different industries globally spend their major chunk of time in recruiting, performance management, talent management, succession planning, mentoring and retention. 31

Talent management strategies are holistic in nature and aim at supporting such practices which improve the communication of goals and performance expectations across different levels in an organization. These strategies can be categorized into the following heads:     

Developing the existing talent pool Maximizing employee satisfaction Attracting talent visibility Planning in advance for succession Acting upon the performance reviewed

According to a report from CIPD’s 2006 learning and development survey, managing talent is not a very easy job and various factors influence the talent management strategies and policies of an organization. The report equally highlights that about 74% of the respondents did not have a properly conceived plan for management of talent. Some of the major strategic challenges to talent management are:    

A rise in the trends of globalization in the labour market. An increase in the virtual workplaces. Diverse workforce in terms of age, race, etc. Educated workforce carries independent notions about their style of work and career path.

However, for many organizations talent management is a major strategic issue and they view it as a critical factor for providing them with a competitive advantage in the competitive war for talent. Effective management of talent requires a thorough diagnosis of the employee attitudes and also the organizational culture. The tools which help in attracting and retaining the best of talent in an organization are pay, benefits, learning and development and a proper work environment which can be group centric or individual and the benefits can be tangible or intangible.

Succession & Career Planning: Succession planning is having in place measures to identify and develop potential successors for key or strategic posts in an organization. It is different from replacement planning which grades employees on the basis of their past performance. Succession planning nurtures future talent to lead the organization. Career planning, on the other hand, is done for all positions in the organization. However, both succession and career planning are an integral part of career management policy. Succession and career planning is the process of identifying, nurturing, developing, and training new leaders for future requirements or replacement of the existing leaders to continue the trend of dependable leadership in the organization. Following are the stages to follow to ensure fruitful succession and career planning − 

Identify the Critical Position − Organization should always keep a watch on what are the key elements or contributors to their business, how to motivate and retain talent, and what will be the next step if the main contributors leave the organization due to any reason. Who are the specialized people to perform the critical role?



Analysis − this stage tells about the requirements to fill with a fit successor. What are the gaps? What are the internal and external sources to fill the gaps, what will be the strategy? What will be the competencies required?

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

Development of Succession and Career Plan − It is also called as backup plan to streamline the function of the organization. It identifies the requirements and outlines a strategy to fill the gap and make sure that functions are being performed well.



Evaluate, Monitor, and Observe − this is the process of evaluation. It involves constant monitoring, even after the gap or requirement is fulfilled. Performance is observed to find out if any changes are required. In case if any changes are required, quick action is taken.

Labour relations: The term labour relations, also known as industrial relations, refer to the system in which employers, workers and their representatives and, directly or indirectly, the government interact to set the ground rules for the governance of work relationships. It also describes a field of study dedicated to examining such relationships. The field is an outgrowth of the industrial revolution, whose excesses led to the emergence of trade unions to represent workers and to the development of collective labour relations. A labour or industrial relations system reflects the interaction between the main actors in it: the state, the employer (or employers or an employers’ association), trade unions and employees (who may participate or not in unions and other bodies affording workers’ representation). The phrases “labour relations” and “industrial relations” are also used in connection with various forms of workers’ participation; they can also encompass individual employment relationships between an employer and a worker under a written or implied contract of employment, although these are usually referred to as “employment relations”. There is considerable variation in the use of the terms, partly reflecting the evolving nature of the field over time and place. There is general agreement, however, that the field embraces collective bargaining, various forms of workers’ participation (such as works councils and joint health and safety committees) and mechanisms for resolving collective and individual disputes. The wide variety of labour relations systems throughout the world has meant that comparative studies and identification of types are accompanied by caveats about the limitations of over-generalization and false analogies. Traditionally, four distinct types of workplace governance have been described: dictatorial, paternalistic, institutional and worker-participative; this chapter examines primarily the latter two types. Both private and public interests are at stake in any labour relations system. The state is an actor in the system as well, although its role varies from active too passive in different countries. The nature of the relationships among organized labour, employers and the government with respect to health and safety are indicative of the overall status of industrial relations in a country or an industry and the obverse is equally the case. An underdeveloped labour relations system tends to be authoritarian, with rules dictated by an employer without direct or indirect employee involvement except at the point of accepting employment on the terms offered. A labour relations system incorporates both societal values (e.g., freedom of association, a sense of group solidarity, and search for maximized profits) and techniques (e.g., methods of negotiation, work organization, consultation and dispute resolution). Traditionally, labour relations systems have been categorized along national lines, but the validity of this is waning in the face of increasingly varied practices within countries and the rise of a more global economy driven by international competition. Some countries have been characterized as having cooperative labour relations models (e.g., Belgium, Germany), whereas others are known as being conflictual (e.g., Bangladesh, Canada, United States). Different systems have also been distinguished on the basis of having centralized collective bargaining (e.g., those in Nordic countries, although there is a move away from this, as illustrated by Sweden), bargaining at the sectoral or industrial level (e.g., Germany), or bargaining at the enterprise or plant level (e.g., Japan, the United States). In countries having moved from planned to free-market economies, labour relations systems are in transition. There is also increasing analytical work being done on the typologies of individual employment relationships as indicators of types of labour relations systems.

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Even the more classic portrayals of labour relations systems are not by any means static characterizations, since any such system changes to meet new circumstances, whether economic or political. The globalization of the market economy, the weakening of the state as an effective force and the ebbing of trade union power in many industrialized countries pose serious challenges to traditional labour relations systems. Technological development has brought changes in the content and organization of work that also have a crucial impact on the extent to which collective labour relations can develop and the direction they take. Employees’ traditionally shared work schedule and common workplace have increasingly given way to more varied working hours and to the performance of work at varied locations, including home, with less direct employer supervision. What have been termed “atypical” employment relationships are becoming less so, as the contingent workforce continues to expand. This in turn places pressure on established labour relations systems. Newer forms of employee representation and participation are adding an additional dimension to the labour relations picture in a number of countries. A labour relations system sets the formal or informal ground rules for determining the nature of collective industrial relations as well as the framework for individual employment relationships between a worker and his or her employer. Complicating the scene at the management end are additional players such as temporary employment agencies, labour contractors and job contractors who may have responsibilities towards workers without having control over the physical environment in which the work is carried out or the opportunity to provide safety training. In addition, public sector and private sector employers are governed by separate legislation in most countries, with the rights and protections of employees in these two sectors often differing significantly. Moreover, the private sector is influenced by forces of international competition that do not directly touch public-sector labour relations. Finally, neoliberal ideology favouring the conclusion of individualized employment contracts to the detriment of collectively bargained arrangements poses another threat to traditional labour relations systems. Those systems have developed as a result of the emergence of collective representation for workers, based on past experience that an individual worker’s power is weak when compared to that of the employer. Abandoning all collective representation would risk returning to a nineteenth century concept in which acceptance of hazardous work was largely regarded as a matter of individual free choice. The increasingly globalized economy, the accelerated pace of technological change and the resultant call for greater flexibility on the part of industrial relations institutions, however, pose new challenges for their survival and prosperity. Depending upon their existing traditions and institutions, the parties involved in a labour relations system may react quite differently to the same pressures, just as management may choose a cost-based or a valueadded strategy for confronting increased competition (Locke, Kochan and Piore, 1995). The extent to which workers’ participation and/or collective bargaining are regular features of a labour relations system will most certainly have an impact on how management confronts health and safety problems. Moreover, there is another constant: the economic dependence of an individual worker on an employer remains the underlying fact of their relationship–one that has serious potential consequences when it comes to safety and health. The employer is seen as having a general duty to provide a safe and healthful workplace and to train and equip workers to do their jobs safely. The worker has a reciprocal duty to follow safety and health instructions and to refrain from harming himself/herself or others while at work. Failure to live up to these or other duties can lead to disputes, which depend on the labour relations system for their resolution. Dispute resolution mechanisms include rules governing not only work stoppages (strikes, slowdowns or goslows, work to rule, etc.) and lockouts, but the discipline and dismissal of employees as well. Additionally, in many countries employers are required to participate in various institutions dealing with safety and health, perform safety and health monitoring, report on-the-job accidents and diseases and, indirectly, to compensate workers who are found to be suffering from an occupational injury or disease.

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HR Planning: Human resource planning, or HRP, is the on-going, continuous process of systematic planning to achieve optimum use of an organization's most valuable asset — its human resources. The objective of human resource planning is to ensure the best fit between employees and jobs while avoiding manpower shortages or surpluses. The four key steps of the human resources planning process are analysing present labour supply, forecasting labour demand, balancing projected labour demand with supply and supporting organizational goals. The human resources plan needs to be flexible enough to meet short-term staffing challenges while adapting to changing conditions in the business environment over the longer term. Human resource planning starts by assessing and auditing the current capacity of human resources. Human Resource Planning (HRP) is the process of forecasting the future human resource requirements of the organization and determining as to how the existing human resource capacity of the organization can be utilized to fulfil these requirements. It, thus, focuses on the basic economic concept of demand and supply in context to the human resource capacity of the organization. It is the HRP process which helps the management of the organization in meeting the future demand of human resource in the organization with the supply of the appropriate people in appropriate numbers at the appropriate time and place. Further, it is only after proper analysis of the HR requirements cans the process of recruitment and selection is initiated by the management. Also, HRP is essential in successfully achieving the strategies and objectives of organization. In fact, with the element of strategies and long term objectives of the organization being widely associated with human resource planning these days, HR Planning has now became Strategic HR Planning. Though, HR Planning may sound quite simple a process of managing the numbers in terms of human resource requirement of the organization, yet, the actual activity may involve the HR manager to face many roadblocks owing to the effect of the current workforce in the organization, pressure to meet the business objectives and prevailing workforce market condition. HR Planning, thus, help the organization in many ways as follows:   





HR managers are in a stage of anticipating the workforce requirements rather than getting surprised by the change of events Prevent the business from falling into the trap of shifting workforce market, a common concern among all industries and sectors Work proactively as the expansion in the workforce market is not always in conjunction with the workforce requirement of the organization in terms of professional experience, talent needs, skills, etc. Organizations in growth phase may face the challenge of meeting the need for critical set of skills, competencies and talent to meet their strategic objectives so they can stand well-prepared to meet the HR needs Considering the organizational goals, HR Planning allows the identification, selection and development of required talent or competency within the organization.

It is, therefore, suitable on the part of the organization to opt for HR Planning to prevent any unnecessary hurdles in its workforce needs. An HR Consulting Firm can provide the organization with a comprehensive HR assessment and planning to meet its future requirements in the most cost-effective and timely manner.

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An HR Planning process simply involves the following four broad steps: 







Current HR Supply: Assessment of the current human resource availability in the organization is the foremost step in HR Planning. It includes a comprehensive study of the human resource strength of the organization in terms of numbers, skills, talents, competencies, qualifications, experience, age, tenures, performance ratings, designations, grades, compensations, benefits, etc. At this stage, the consultants may conduct extensive interviews with the managers to understand the critical HR issues they face and workforce capabilities they consider basic or crucial for various business processes. Future HR Demand: Analysis of the future workforce requirements of the business is the second step in HR Planning. All the known HR variables like attrition, lay-offs, foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into consideration while determining future HR demand. Further, certain unknown workforce variables like competitive factors, resignations, abrupt transfers or dismissals are also included in the scope of analysis. Demand Forecast: Next step is to match the current supply with the future demand of HR, and create a demand forecast. Here, it is also essential to understand the business strategy and objectives in the long run so that the workforce demand forecast is such that it is aligned to the organizational goals. HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply and demand, the HR Consulting Firm develops plans to meet these gaps as per the demand forecast created by them. This may include conducting communication programs with employees, relocation, talent acquisition, recruitment and outsourcing, talent management, training and coaching, and revision of policies. The plans are, then, implemented taking into confidence the mangers so as to make the process of execution smooth and efficient. Here, it is important to note that all the regulatory and legal compliances are being followed by the consultants to prevent any untoward situation coming from the employees.

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Latest trends in HR:

02

01 FROM PTB TO EI

Renewed focus on productivity

03

04

Learning WORK LIFE in real BALANCE time

From PTB to EI: Dave Ulrich’s “Human Resource Champions” has probably been the book with the largest impact on the HR profession in the last decades. Unfortunately, many people did not read the book, but only saw a picture with the four archetypical roles for HR. For many the book was summarised in one key message: you must become a Strategic Business Partner. As strategy was a role of top management, this meant you had to get close to management, or even better, become part of top management! Many of today’s CHRO’s have grown in this area. Therefore, HR has focused too much on pleasing top management, and forgot to develop one of the other key roles Ulrich described: Employee Champion. The tide is slowly turning, from PTB (please the boss) to EI (employee intimacy). Really understanding the 37

wishes, needs and capabilities of employees is getting more important, and this employee intimacy is required to design relevant employee journeys.

Renewed focus on productivity: In the last years, there has not been a lot of focus on productivity. We see a slow change at the horizon. Traditionally, capacity problems have been solved by recruiting new people. This has led to several problems. When you need many people, it is difficult to apply very stringent selection criteria. Because you compromise on quality, and because if you grow you generally need more coordination mechanisms (often management), productivity goes down. When focusing more on productivity, the benefits for the organisation and the employees can be big. You need to hire less people, and the potential of the employees is better used. People analytics can help to determine what the characteristics are of the best performing people and teams. The findings can be used in recruitment and in people and team development.

Learning in real time: The learning domain has been slow in using the opportunities offered by technology. Loads of money is still wasted on classroom training for groups of employees on very broad subjects, often not directed at immediate application, but for possible future use. There are signs this is changing. Big chunks of material are divided in more digestible small pieces (micro learning). Employees will have easy access to learning material when they need it (just in time). Knowledge and skills can be learned in a playful manner (gamification), and VR and AR learning solutions make learning more real (and fun). The learning experience can be tailored to the individual capabilities and needs of employees. A challenge will remain to monitor and measure the performance of people, to be able to find (or design) the most appropriate learning solution.

Work life balance: Work Life Balance is defined as a means of flexible working or flexible leave available to employees. These arrangements may be in addition to statutory entitlements and are generally granted to the employee to accommodate their needs outside of the workplace. They may be to facilitate family commitments; study or health and DCU is very supportive of these initiatives, provided that the needs of the university are not adversely affected. Work Life Balance initiatives can benefit the employee by assisting them to start, stay in, or re-enter employment while dealing with other responsibilities or availing of other opportunities in their lives. The benefits of Work Life Balance for DCU is that it enhances recruitment and retention of workers, facilitates diversity in skills, reduces sickness and absenteeism, stress and builds workplace morale and productivity. Studies have reported such benefits as enhancing working relationships between colleagues and encouraging employees to show more initiative and teamwork. Work Life Balance initiatives also benefit workplace equality in that they support the presence and participation in the work-place of a diverse range of workers from across the grounds of gender, marital status, family status, age, disability, sexual orientation, race, religion and membership of the Traveller community.

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CHAPTER 5 COMPANY ANALYSIS

RESEARCH PROBLEM: Nowadays employees are quitting from their jobs due to human resource management policies adopted by the organization. Therefore, I have undergone my research by under checking the effectiveness of Human resource management in IIFL PReMIA

RESEARCH OBJECTIVE: The objectives of the study will be:  To identify the recruitment practices of IIFL  To examine how recruitment practices affect the performance or development of IIFL.  To assess the challenges associated with the recruitment practices of IIFL.  To identify factors that will improve recruitment practices at IIFL.  Describe the organization and explain the scope of work in recruitment and selection Process.  To experience different recruitment and selection activities which are followed by IIFL.  Recognize and identify how theories and concepts that covered in MBA program are applied in recruitment and selection process.  Propose suggestions and recommendations for the practitioners the can help management further to apply best practices in human resource management in the organization.  Identifying inherent problems associated with the format.  Propose changes mainly in the guidelines, format and management philosophy by keeping relevance with other processes.  Employee Personnel practice.  Developing Employees practices

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RESEARCH DESIGN: The research will be based on assessing recruitment practices of IIFL. The design will be a descriptive study which will use both quantitative and qualitative tools to HUMAN RESOURCES MANAGEMENT adopted by IIFL. The study will be based on the use of questionnaires. The plan is an outline of the research scheme on which the researcher is to work. The structure of the research is a more specific outline or the scheme and the strategy shows how the research will be carried out specifying the methods to be used in the collection and analysis of the data. Research design is the blueprint of the research it lays down the method and procedure for the collection of requisite information and its measurement and analysis with a view to arriving at certain meaningful conclusions at the end of the proposed study.

LIMITATIONS: The major limitations that I faced during my internship period and preparation of this report are as follows:     

Employees are not allowed to provide sensitive and depth information. The main constraint of the study was insufficient access to information which has significantly disturbed the scope of the analysis that is required for the study. As the employees were busy with their own duty, they could give me little time for consultation. Time restriction is another important for limitation of study. Published information is not up t++o date

OBSERVATION: Through my internship period at IIFL, I have observed some issues which are:

 Limited workforce: Recruitment and talent management department of HR division performs their responsibilities with a limited workforce. Sometimes, it makes so stressful working environment for existence employees.

 Recruitment and selection process done continuously: In IIFL, recruitment and selection is a continuous process. Almost every week, HR division has done recruitment and selection task and these tasks have done chronologically.

 Lots of paper work:



Recruitment and talent management department of IIFL has used lots of paper work. From requisition form to publishing final result, Paper is used in every aspect. As a result, they waste many papers and do not recycle this paper most of the times. Proper use of internal sources of recruitment: Recruitment and talent management department maintains good eyes on its internal sources. When there is any recruitment process, HR division posted recruitment advertisement on every notice of every branch. They also publish this advertisement on their intranet. So, staff from this organization can see the advertisement. HR division also maintains contact with other divisions’ employees so that they can recommend other people to apply here. 40

What I learned from internship program: Time management: I had always work to arrange, organize, schedule and budget my time to finish the tasks. It will help to develop my time management skill with effectively and efficiently.

Communication: I had to communicate different types of people like applicants, managers, internees, new joiners for complete my tasks. So, it helps me to develop communication skills.

Stress management: When there is any recruitment and selection activity, I had to do this with stress because there is shortage of workforce compare with job. So I have learnt how to deal with stress.

Teamwork: I always worked with a helpful team in IIFL. Here, I understood that teamwork is an essential part to complete task for organization aspect.

Adaptability: Today’s work culture — whether you’re hoping to intern for a startup or well-established organization — often requires even the most senior level executives to wear multiple hats.

Critical Thinking: Critical thinking refers to your ability to analyse and evaluate a situation or issue and form a judgment. The tendency to think critically can be demonstrated by a willingness to ask questions in order to understand an issue from all possible angles, and to pose creative solutions to challenges.

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DATA ANALYSIS & INTERPRETATION: DATA ANALYSIS: The analysis of the data is done as per the survey findings. The data is represented through pie charts, bar graphs, histograms. The percentage of the employee’s opinion were analysed and expressed in the form of charts and through data analysis the findings became very easy to conclude.

DATA INTERPRETATION: A questionnaire was prepared for the purpose of getting feedback from the employees and manager regarding HUMAN RESOURCE MANAGEMENT” of their company. 30 Employees were selected from different departments and were distributed the questionnaire for the purpose of study.

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SMAPLING METHOD: The names of the respondents will be collected from the different departments at IIFL using the formulae K=N/n, where K is the sampling interval and N is the total number of names in the register and n the sample size of the research.

SOURCES OF DATA: The questionnaire prepared for collecting information regarding the MANAGEMENT process was filled by different departments of the company.

HUMAN

RESOURCE

The main source of data collection is the Primary Source. Data was collected with the help of a questionnaire, which were presented to the employees of the organization. The questionnaire contained closed ended and open ended questions. Also, the data was collected with the help of informal interviews.

DATA COLLECTION TECHNIQUES: The study will use questionnaire. The questionnaire will be responded to by the sampled employees of the organisation. The questions will be designed to make the purpose of the study successful after the results have been ascertained. This instrument will give expected information about the human resource management of IIFL.

DATA ANALYSIS PROCEDURE: This is a process by which numerical data are collected and analysed and used to explain phenomenon. The collected data will be statistically analysed, using the Statistical Package for Social Science software (SPSS). Representations like table, graphs and pie charts will be used to ensure easy and quick interpretation of data. Responses will be expressed in percentages. Data from the completed questionnaire will be checked for consistency. The items will be grouped based on the responses given by the respondents and will be coded for easy usage of the Statistical Package for Social Science software (SPSS).

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 For how long you have been working in the organization?

No. Of years 0-1 years 1-2 years 2-3 years More than 3 years Total

Response 8 5 4 13 30

Percentage (%) 13% 11% 26% 50% 100%

No. of years 0-1 year

1-2 years

2-3 years

More than 3 years

13%

11%

50%

26%

INTERPRETATION: According to the survey out of 30 respondents: 13% employees are working with IIFL for approximately a year. 11% employees are working with IIFL between 1-2 years. 26% employees are working with IIFL between 2-3 years. 50% employees are working with IIFL for more than 3 years. 44

 Through which source your Organisation recruit the employees?

Sources Internal External Total

Response 0 30 30

Percentage (%) 0% 100% 100%

Source of Recruitment 0%

Internally

Externally

100%

INTERPRETATION: Sources of recruitment plays an important role in an organization. According to the survey at IIFL the conclusion is: None of the respondent feels that recruitment is done internally. 100% respondents feel that recruitment is done only externally.

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 Does the selection methods used by the Organization are reliable?

Response 30 0 30

Yes No Total

Selection Method 35

30

25

20 Yes 15

10

5

0 Yes

No

INTERPRETATION: According to the survey the conclusion is: 100% employees think that the selection method which is carried out in IIFL is reliable.

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 Were you clear about your job role and responsibilities before joining the

To large extent To some extent Total industry?

Response 16 14 30

Percentage (%) 53% 47% 100%

Clear about Job role & responsibility

47%

To large extent 53%

To some extent

INTERPRETATION: An employee should have knowledge regarding the job he is going to do. HR team should clear the job role and responsibility to an employee. After the survey at IIFL the conclusion came out is: 53% respondents feel that they were clear about the job role and responsibility before joining the organization, while rest 47% were not clear about their job role and responsibility before joining the organization.

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 Organization’s HR is fully aware of the business needs and strategies?

Fully agree Agree Neither agree disagree Partially disagree Disagree Total

Response 20 9 nor 1

Percentage (%) 66.67% 30% 3.33%

0 0 30

0 0 100%

HR awareness about the business needs & strategies fully agree

agree

neither agree nor disagree

partially disagree

disagree

0% 0% 3% 30%

67%

INTERPRETATION: As I know Organization’s HR is fully aware of the business needs and strategies. According to survey 67% of respondents fully agree with this 30% of respondents agree 3% of the respondents neither agree nor disagree 48



The organization conducts exit interviews?

Response Yes No TOTAL

30 0 100

Percentage % 100% 0 100%

exit interviews

yes no

INTERPRETATION: Employee satisfaction is very important for an organization. According to survey: All the employees agree that IIFL’s HR division is conduction exit interviews while any of the employees leave the organization

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

Performance appraisal system is extended to all members of the organization?

Strongly agree Agee Disagree Strongly Disagree Can’t say Total

Response 7 21 0 0 2 30

Percentage (%) 23.33% 70% 0% 0% 6.67% 100%

Performance appraisal

Strongly agree

Agree Disagree Strongly disagree Can't say

INTERPRETATION: According to the survey: 23.33% of the respondents strongly agree that performance appraisal system is extended to all members of the organization. 70% of the respondents agree that performance appraisal system is extended to all members of the organization. While, 6.67% of the respondents can’t judge that performance appraisal system is extended to all members of the organization.

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

The organization has a formal policy of career planning and development?

Yes No Total

Response 30 0 30

30

25 No

20

Yes

15

10

5

0

INTERPRETATION: Formal policy should be developed by every organization for the enrichment and development of the employees. According to the survey all the respondents are satisfied with the formal policy of the organization for career development.

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

Organization has the practice of carrying employee attitude/employee satisfaction surveys?

Strongly agree Agree Neither agree nor disagree disagree Total

Response 19 9 1 1 30

Percentage (%) 63.33 30% 3.33% 3.33% 100%

employee attitude/satisfaction

strongle agree agree

neither agree nor disagree disagree

INTERPRETATION: IIFL is taking care of the employee attitude/satisfaction surveys this helps in reducing the employee’s turnover and increase the satisfaction of the employees. According to the survey 63.33% of the respondent strongly felt that IIFL is following this practice While rest of them lies in agree, neither agree nor disagree and disagree.

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

Yes No Total

The organization has provision for employee recognition programmes and awards?

Response 30 0 30

Percentage (%) 100% 0% 100%

recognition & awards programmes

yes no

INTERPRETATION: Recognition and award programmes are the thing through which an employee will feel motivated for they work they are doing. IIFL is taking care of their employees as well as they are motivating them to perform well. After the responses I got from the employees. It was 100% of the sample feels that IIFL has a provision for employee recognition programmes & awards.

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

The organization has been managing change by integrating the HR issues with the business strategies and the strategic change process?

Strongly agree Agree Neither agree nor disagree disagree Total

Response 19 11 0 0 30

Percentage (%) 63.33 36.67% 0 0 100%

HR issues

strongly agree agree neither agree nor disagree disagree

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SWOT Analysis

STRENGTHS: The strengths of a company are the most important building blocks required for growth to take place. The following are a few of the most prevalent strengths that IIFL has at the present time. Recruitment: Their recruitment and selection policy is very strong. IIFL recruits talented candidates from the market through proper testing- written and interview. Work environment: During my stay I found the work environment very satisfactory. Everyone is cordial and helpful and cooperative. There is less internal conflict or politics at play which is essential for conducting a productive working environment. Transparency: For clear communication to the employees of the HR Practice in IIFL, they have a service rule book which they give to every employee. The guide articulates important and covers all HR Practice followed by the organization. This is very helpful both for the employees and the employer as it removes chances of misinterpretation, bias etc. Accountable Corporate Governance is very important for the AMC: Good Corporate Governance is an issue of vital importance to the Board and Management of IIFL. The Board of Directors, as the head level of authority, is responsible and accountable for the overall direction and is ultimate answerable to regulatory authorities and shareholders for the activities, strategies and performance of the company. The board now has 9 members, which also includes 2 independent directors. IIFL board has a formal schedule of matters especially reserved for its decision including corporate strategy, approval of budgets and balance sheet, annual financial results, Director Appointment, proposal for dividend, approval of major corporate transactions and credit proposals beyond the delegated business power of the management. IIFL provides online Services: IIFL provides the online services to its customers. By using the modern online services, where customer can purchase or repurchase an amount of shares of unit fund under its account. This service gives customer huge flexibility. More and more urban customers are becoming attracted to this service day by day. This online service provides great benefit for the customers, as they do not have to face the hassle of going to the office to know their balances.

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Training and development system of IIFL is a prime reason of their success:IIFL gives regular training to the officer of both middle and lower levels. Again if there is any strategy or technology change, there will be special training program arranged based on individual needs. They arrange special training on their software also which they use in the office to operate their system, which eventually becomes beneficial not only for the employee but also for the organization, because if they do not know the exact procedure of carrying out work in their system then that might affect them both the employee end into making mistake, and as a result the reputation of the organization also might get hampered.

WEAKNESS: Though IIFL is a company that has many strengths but it also has some weakness. The followings are few of the most common weakness that Alliance Capital has at the present time: Inadequate human resources: The human resources are not sufficient in terms of its service providing system. It has to maintain a number of formalities to recruit employees. Human Resource Planning: There is not much Human Resource Planning at the Organization except for an annual need assessment for required workforces. Lack of Job Analysis: It is the important part of HR practice in an organization but not implanted in IIFL which means they are less informed about current market trends and that could lead to loss of potential talents from their pool. OPPORTUNITY: In an organization opportunities are positive external environmental factors. An organization should explore all possible opportunities available to it. These opportunities are intended to improve the organization. By making improvements, the organization should be able to become more competitive in the market. The following are available opportunities to IIFL in order for it to become more aggressive: Recruitment: Most recruitment in here is through internal recruitment, they can spread the pool of entry level employees through campus recruitment. Expanded market: As new industries are coming into the market, capital market is being large enough and long term financial demand is being created. The open ended mutual fund is a new sector, so there are high possibilities of growth in this sector. Open ended mutual fund is a largely untapped market, and IIFL will be able to capture a large number of institutional clients from competitors, as well as new clients. THREATS: An organization’s threats are negative external factors. An organization should explore all possible threats available to it. These threats are intended to diminish the organization. By making improvements and proper monitoring of the threats, the organization should be able to turn more competitive in the market. The following are threats are available to IIFL in order to threaten its existence. 56

Volatile economy: The market can be volatile, and a sudden drop in prices will weaken client confidence & portfolio performance. Rise in interest rate and events like terrorist attacks are likely to affect the economy and the margin of leasing companies may also suffering this. The changing nature of share market also affects the smooth operation. Government Policy: The changes of policy connected to the operation of finance companies might create an unfavourable impact on the investment industry. The decision to withdraw the accounting practices accelerated depreciation and extra shift depreciation has decreased the profitability. The Lack of Motivation of Employees: Sometimes the lack of motivation in employees can create a threat to the organization. Employees may be overburdened with tasks that are not their core-competencies. As a result, the quality and accuracy of deliverables duties may fall. Employee turnover may have a negative effect on the overall performance of organization.

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Findings of the study: 

  

Compensation and Benefits: Compensation basically consists of direct and indirect compensation and Alliance Capital is very much concerned about both these types of compensation. They offer attractive package that is in per with current market practice in similar sector. They also offer bonuses and yearly incremental. For long term benefits, IIFL has provision of Gratuity, Provident Fund. They also have leave planning for employees consisting of different kind of leaves according to employee needs. Performance Evaluation: The evaluation of employee’s performance of IIFL is not properly done by the HR division. Officers of the organization are competent even though many of them simply know the working procedure of what they are doing but don’t know the philosophy behind doing those. Service quality of IIFL is commendable. It is very important for every organization serve its customers so that it create a loyal customer base who will repeatedly buy its products and carry a long-time relationship with the company as well as work as a spoken person to promote the products of the company to peers, friends, relatives, etc. This organization is really good at its service quality.

Recommendations:           

The organization should practice proper IIFL guideline. The purpose of Human Resource Management is to improve the productive contribution of people. To get effective and efficient employee, the organization should arrange proper training and development programs. The entire HR department should be well informed regarding the employment personal. The organization should provide well direct compensation as well as direct to its staffs. The management should have job evaluated salary structure, which is most competitive than other organizations in the country. To evaluate employee’s performance; the management should follow promotion policy properly. In order to get competitive advantage and to deliver quality service, top management should try to modify the services. Periodical performance appraisal and giving recognition and rewards to the qualified employees to keep motivating them. Proper training needed for ensuring efficient performance of the employees. IIFL should hire specialist for each individual sector. The management should create customers database and continuously informing the investors about the available facilities or opportunities which will work to achieve twin goal at a time; one is direct marketing and another is large pool of customers database.

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Limitations:     

 

Limitation of employment personal. Lack of practices in human resource management. Human resources department was hesitant to provide information, because of difficulty in accessing sensitive data and information. Non-availability of some previous statistical data. The term of the internship period is brief time whereas Human Resources Division is a vast area, after doing the regular office works from 9:30 AM to 5:30 PM it is difficult to go through in depth within this short duration of time. The secondary source of information was not enough to complete the report. Confidentiality.

Conclusion: From the above discussion it can conclude such a way that since human resource management is a continuously practicing issue so it plays a significant role on organizations overall performance. If an organization wants to gain full benefit from human resource management it should follow all the sections of HRM. As a small IIFL few persons are recruited for its operations and performances. But it will expand soon or later and then the number of HR employee may not be enough to run the company.

Committed and trustworthy employees are the most significant factors to becoming an employer of choice; It is no surprise that companies and organizations face significant challenges in developing energized and engaged workforces. However, there is abundance of research to demonstrate that increased employee commitment and trust in leadership can positively impact the company’s bottom line. In fact, the true potential of an organization can only be realized when the productivity level of all individuals and teams are fully aligned, committed and energized to successfully accomplish the goals of the organization. Thus, the objective of every company should be to improve the desire of employees to stay in the relationship they have with the company.

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CHAPTER 6 ANNEXURE

QUESTIONNNAIRE:  0-1

For how long you have been working in the organization? Years

1-2 years 2-3 years More than 3 years 

Through which source your Organisation recruit the employees?

Internal External 

Does the selection methods used by the Organization are reliable?

Yes No 

Were you clear about your job role and responsibilities before joining the industry?

To large extent To some extent 

Organization’s HR is fully aware of the business needs and strategies?

Fully agree Agree Neither agrees nor disagrees Partially disagrees Disagrees 

The organization carries out succession planning in order to ensure that executives are available to fill gaps in key managerial position

Fully agree 60

Agree Neither agrees nor disagrees Partially disagrees Disagrees 

The organization conducts exit interviews?

Always Sometimes Never 

Performance appraisal system is extended to all members of the organization?

Strongly agree Agree Neither agrees nor disagrees Partially disagrees Disagrees 

The organization has a formal policy of career planning and development?

Yes No 

Organization has the practice of carrying employee attitude/employee satisfaction surveys

Strongly agree Agree Neither agrees nor disagrees Disagrees 

The organization has provision for employee recognition programmes and awards Yes No



The organization has been managing change by integrating the HR issues with the business strategies and the strategic change process?

Strongly agree Agree Neither agrees nor disagrees 61

Partially disagrees Disagrees

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BIBLIOGRAPHY

Websites: www.iifl.com hrcouncil.ca/home.cfm www.wikipedia.com hr.uchicago.com

Books: Human Resource Management: Fisher, Schoenfeldt, Shaw 6th Ed Understanding and managing people (BEACON BOOKS) Human Resource Management (Galgotia Publishing Company) Personnel/Human Resource Management (MSM Textbook) Organization Effectiveness and Change (MSM Textbook) Organizational Behaviours (MSM Textbook)

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