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A PROJECT ON HR PRACTICES

OF

HINDUSTAN UNILEVER

AT

SUBMITED BY: SUBMITED TO:

Desai Madhav Ashutosh Dr. Bhavna Jaiswal

Section –H Human Resource faculty,

13BSPHH010941 IBS, Hyderabad.

Seat No. 45

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TABLE OF CONTENT

CHAPTER NO. TITLES PAGE NO.

1 Executive Summary 3

2 Company Profile 4

3 Introduction to HR Practice of HUL 5

4 HR Practices 6

Recruitment & Selection 7

Performance Management 11

Training & Career Development 14

Talent Management 17

Compensation 19

Employee Engagement 20

5 REFERENCES 21

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EXECUTIVE SUMMERY

The importance of personnel management is being increasingly realized in industrial and non-

industrial organization both in India and abroad. The realization has come about because of

increasing complexity of the task of managers and administrators. In most organizations the

problems of getting the competent and relevant people, retaining them, keeping up their

motivation and morale, and helping them to both continuously grow and contribute their best to

the organizations, are now viewed as the most critical problems.

So with this reference the project titled Study of Study of HR practices & process of

Performance Appraisal has been conducted, based on the primary research in HUL’s sales and

production Division has been prepared to get a better insight into the management practices

adopted by HUL with reference to HR Policies prepared by the HR department in organization.

It emphasizes on the importance of a clear cut organization structure and culture to avoid any

confusion in order to achieve maximum result with minimum resources.

The project is aimed to cover maximum knowledge of the HR practices followed in the

organization and how the performance is evaluated of employees, what primary factors are

considered, how data is maintained and finally the evaluation done. Here the HR practices of the

company have been explained to understand how the company follows these practices and the

performance appraisal process adopted. The practical knowledge has been gained mainly by

observing all the activities taking place in the H.R. department. This is a brief study done to have

understanding of the subject H.R., how it is practically implemented, why it is necessary, its

implications & the benefits.

With reference to the HR Practices brief knowledge has been gained how the Recruitment cycle

functions, Selection done, Training Calendar prepared, what does compensation & cost to

company means and the steps of performance appraisal.

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COMPANY PROFILE

Hindustan Unilever (HUL) is the largest fast moving consumer goods (FMCG) company, a

leader in home & personal care products and foods & beverages. HUL's brands are spread across

20 distinct consumer categories, touching lives of every 2 out of 3 Indian.

It has employee strength over 15000 & 1200 managers. It has created widespread network

through its 2000 suppliers & associates. There 75 manufacturing locations in India itself. It caters

its wide range of products to 6.3million outlets. It has market capitalization of 11.5billion

BRANDS:

Home & personal care: - Under this it has brands that cater to every income segment of

population. In this segment it has brands like Lakme, Axe, Pepsodent, Surf Excel, Wheel, Lux,

Dove, Fair & Lovely & many more.

Foods & Beverages:-Under this segment it has brand like Kissan, Knnor Soups, Annapurna,

Kwality Walls, Brooke Bond and Lipton.

It has also launch water purifier with the name Pureit.

The FMCG market is set to treble from $11.6 billion in 2003 to $33.4 billion in 2015.

Penetration level as well as per capita consumption in most product categories like jams,

toothpaste, skin care, hair wash, etc in India is low indicating the untapped market potential.

Companies present in FMCG segment like HUL, Dabur, ITC, Godrej & many more have

potential to acquire market share.

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INTRODUCTION TO HR PRACTICE

HR PRECTICE

The success of any business depends as much on appropriate, effective, well-communicated, HR

and business practices as it depends on meeting the requirements of mandated laws and

regulations. In fact, good planning and the development of effective practices make regulatory

compliance much easier.

HR practices helps in increasing the productivity and quality, and to gain the competitive

advantage of a workforce strategically aligned with the organization’s goals and objectives.

OBJECTIVE OF HR PRECTICE

The main objective of HR Practices is to differentiate the organization from its competitors by

effective and efficient HR Practices. By following this, the organization does its whole work

process. The objective of HR Practices is to increase productivity and quality, and to gain the

competitive advantage of a workforce strategically aligned with the organization’s goals and

objectives.

As the transparent HR practices can reduce attrition, because Transparent HR practices ensure

continuous business growth in every organization. It gives the suitable working environment to

the employees.

The success of company motivates the employees of organization to continue relationship with

it. As all the employees Perks chart has been mentioned according to their designation in the HR

practices, it helps the employees to know what their perks charts are. So it creates a transparency.

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HR PRACTICES OF HINDUSTAN UNILEVER

Effective and Efficient HR practices are very much important for every organization. So, HUL

has also its HR Practices, which helps it a lot to achieve the targets.

Human Resource Management initiatives in any Organization endeavor to change, redefine,

revisit, renew, reinvent, revitalize & restructure the Organization architecture. This is effectively

done with the help of alignment & integration of HR policies & strategies with business goal &

objectives.

The HR Practices of HUL are as follow:

Recruitment and Selection

Performance Management

Training & Carrier Development

Compensation

Employee Engagement

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RECRUITMENT AND SELECTION

RECRUITMENT

It is a process to discover the sources of manpower to meet the requirements of the staffing

schedules and to employ the effective measures for attracting that manpower in adequate

numbers to facilitate effective selection of an efficient workforce. Edwin B. Flippo has defined it

as “The process of searching for prospective employees and stimulating them to apply for jobs in

the organization. “

PROCESS:-

• Finding out the requirement (hiring vs. exit), upcoming vacancies, kind of employees

needed.

• Developing suitable techniques to attract suitable candidates.

• Stimulating as many candidates as possible.

FACTORS AFFECTING RECRUITMENT:-

INTERNAL FACTORS EXTERNAL FACTORS

Employer’s brand Socio-economic factors

Company’s pay package Supply & Demand factors

Quality of work life Employment Rate

Organisation culture Labour market conditions

Career planning & growth Political, Legal, Governmental factors

Company’s size

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SOURCES OF RECRUITMENT:-

INTERNAL SOURCES EXTERNAL SOURCES

Present employees Campus Recruitment

Retired employees Private employment consultant

Dependent of present Data Banks

Employee Referrals Casual Applicants

Trade Unions

Walk-ins

Head Hunting

Mergers & Acquisitions

E-Recruitment

It helps in translating Business Strategy into people requirements. A combination of internal

recruitment, campus recruitment, and executive search is leveraged to meet up to the changing

needs of the organization.

In today’s rapidly changing business environment, organizations have to respond quickly to

requirements for people. Hence, it is important to have a well-defined recruitment policy in

place, which can be executed effectively to get the best fits for the vacant positions.

SELECTION:-

It is one area where the interference of external factors is minimal. Hence the HR department can

use its discretion in framing its selection policy and using various selection tools for the best

result.

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Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be performed to

determine their essential factors) written into a job description so that the selectors know what

physical and mental characteristics applicants must possess, what qualities and attitudes are

desirable and what characteristics are a decided disadvantage.

Effectively, selection is 'buying' an employee (the price being the wage or salary multiplied by

probable years of service) hence bad buys can be very expensive. For that reason some firms

(and some firms for particular jobs) use external expert consultants for recruitment and selection.

Equally some small organizations exist to 'head hunt', i.e. to attract staff with high reputations

from existing employers to the recruiting employer. However, the 'cost' of poor selection is such

that, even for the mundane day-to-day jobs, those who recruit and select should be well trained to

judge the suitability of applicants.

Outsourcing is also done through consultancies by mentioning the requirement, number and

time. Where the organization does its own printed advertising it is useful if it has some

identifying logo as its trade mark for rapid attraction and it must take care not to offend the sex,

race, etc. antidiscrimination legislation either directly or indirectly. The form on which the

applicant is to apply (personal appearance, letter of application, completion of a form) will vary

according to the posts vacant and numbers to be recruited.

Interviewing can be carried out by individuals (e.g. supervisor or departmental manager), by

panels of interviewers or in the form of sequential interviews by different experts and can vary

from a five minute 'chat' to a process of several days. Ultimately personal skills in judgment are

probably the most important.

Training in interviewing and in appraising candidates is clearly essential to good recruitment.

Largely the former consists of teaching interviewers how to draw out the interviewee and the

latter how to rate the candidates. For consistency (and as an aid to checking that) rating often

consists of scoring candidates for experience, knowledge, physical/mental capabilities,

intellectual levels, motivation, prospective potential, leadership abilities etc. (according to the

needs of the post).

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The Recruitment and selection process of HUL:-

The recruitment process of HUL Ltd starts from the requirement of different departments as per

to the org chart. Then they tell to the HR Department. HR Department takes the candidates from

Data bank of company, Poornata etc, then does the short-listing, then does the scheduling for the

interview. After this the selection and negotiation process occurs. Then offer letter is been given

to the selected candidate. The employee then joins in the organization. Then the company

arranges the Induction Program for the employee. After this the recruitment process ends with

this.

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PERFORMANCE MANAGEMENT

It is a structured method of formally and objectively evaluating employees’ performance with

respect to their objectives. It addresses the issue of an employee’s development by providing

them with structured and in-depth analysis of strengths and areas of improvement. It provides

with input for annual increments, training and development.

For an organization the aim should not be just to have the best people, but also to retain them and

get best out of them. Employee Performance management includes planning work and setting

expectations, developing the capacity to perform, continuously monitoring performance and

evaluating it.

Most organizations focus on an annual evaluation process for employees and call that

Performance Management. However, annual evaluations are often subjective and can lack

specific measurements and supportive data to help the employee truly improve their behaviour.

Simply putting, a Performance Management System is essential to the success of any

organization because it influences the effort expended by employees, which in turn, drives

bottom-line business results. Furthermore, the Performance Management System helps an

organization identify, recruit, motivate, and retain key employees.

An effective Performance Management System should achieve the following:-

• Review the employment cycle of every employee,

• Beginning with the recruiting process,

• Employee development,

• Ending with effective exit interviews.

• Employee’s knowledge, skills, and abilities with the organization's human capital needs

and business objectives.

• Provide managers and employees with the tools necessary to focus on short-term and

long-term goals that contribute to both career and organizational success.

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PURPOSE:

For Administration-

• Document HR decisions with regards to performance & its related issues.

• Determine promotion of employees.

• Determine increment in pay of employees.

• Determine transfer & change in job assignments.

• Determine retention or termination.

• Decide on layoffs.

• Decide need for training

• Decide salary & related issues.

For Development-

• Provide performance feedback to all concerned.

• Identify individual skills, core competencies, strength & weaknesses.

• Assist employees in setting goals.

• Identify training needs.

• Improve communication.

Method employed:-

• 360 degree performance appraisal.

Mechanisms like 360 degree feedback provide feedback from superiors, peer groups and

subordinates to provide holistic and objective evaluation of the employees. Assessment on their

potential is communicated transparently to all employees individually and career paths are shared

with them.

• Management by Objectives (MBO).

MBO is a process whereby superior & subordinate managers of an organization jointly identify

its common goals, define each individual’s major areas of responsibilities in terms of results

expected of him & use these measures of guides for operating the unit & assessing the

contribution of its members. The MBO focuses attention on participative set goals that are

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tangible, verifiable & measurable. The superior & subordinates jointly determine goals to be

considered during appraisal period & what level of performance is necessary for subordinates to

satisfactorily achieve specific goals. During performance appraisal period the superior &

subordinates update & alter goals as necessary due to changes in business environment. If not

achieved identify reasons for deviation.

SYSTEM of Performance Appraisal –

Establish Performance Standard.

Communicate standard & expectation to employees.

Measure actual performance by following instructions.

Adjust actual performance due to environment influence.

Compare actual performance with set standards & find out deviations.

Suggest changes in job analysis & standards if necessary.

Follow up.

PROBLEMS-

Rating biases-

Halo effect

Error of central tendency.

Personal Prejudice.

Regency effect.

Mainly the performance management of HUL is done by online system includes the following

basic processes

1. Annual goal setting

2. Mid-year review

3. Annual performance review

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TRAINING AND DEVELOPMENT

The needs of individual are objectively identified & necessary interventions are planned for

identified groups, which get rolled out in a phased manner through training calendar.

The training and development program is charted out to cover the number of trainees, existing

staff. The programs also cover the identification of resource personnel for conducting

development program, frequency of training and development programs and budget allocation.

Training and development programs can also be designed depending upon job requirement and

analysis. Selection of trainees is also facilitated by job analysis.

The company has a strong focus on manpower training according to their requirements. The

internal training department aims at improving the skill sets relevant to the work profile of

employees. This includes improving communication, Different skills, E-mail programming,

Operation systems.

The design of the training program can be undertaken only when a clear training objective has

been produced. The training objective clears what goal has to be achieved by the end of training

program i.e. what the trainees are expected to be able to do at the end of their training. Training

objectives assist trainers to design the training program.

Training Design:-

The trainer – Before starting a training program, a trainer analyses his technical, interpersonal,

judgmental skills in order to deliver quality content to trainers.

The trainees – A good training design requires close scrutiny of the trainees and their profiles.

Age, experience, needs and expectations of the trainees are some of the important factors that

affect training design.

Training climate – A good training climate comprises of ambience, tone, and feelings, positive

perception for training program, etc.

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Trainees’ learning style – The learning style, age, experience, educational background of

trainees must be kept in mind in order to get the right pitch to the design of the program.

Training strategies – Once the training objective has been identified, the trainer translates it into

specific training areas and modules. The trainer prepares the priority list of about what must be

included, what could be included.

Training topics – After formulating a strategy, trainer decides upon the content to be delivered.

Trainers break the content into headings, topics and ad modules. These topics and modules are

then classified into information, knowledge, skills, and attitudes.

Sequence the contents – Contents are then sequenced in a following manner:

• From simple to complex

• Topics are arranged in terms of their relative importance

• From known to unknown

• From specific to general

• Dependent relationship

Training tactics – Once the objectives and the strategy of the training program becomes clear,

trainer comes in the position to select most appropriate tactics or methods or techniques. The

method selection depends on the following factors:

• Trainees’ background

• Time allocated

• Style preference of trainer

• Level of competence of trainer

• Availability of facilities and resources, etc.

Meaning of training & development according to HUL: -

The need for Training and Development is determined by the employee’s performance

deficiency, computed as follows. Training & Development Need = Standard Performance –

Actual Performance.

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Training: Training refers to the process of imparting specific skills. An employee undergoing

training is presumed to have had some formal education. No training program is complete

without an element of education. Hence we can say that Training is offered to operatives.

Development: Development means those learning opportunities designed to help employees to

grow. Development is not primarily skills oriented. Instead it provides the general knowledge

and attitudes, which will be helpful to employers in higher positions. Efforts towards

development often depend on personal drive and ambition. Development activities such as those

supplied by management development programs are generally voluntary in nature. Development

provides knowledge about business environment, management principles and techniques, human

relations, specific industry analysis and the like is useful for better management of a company.

The Training Inputs are:-

• Skills

• Education

• Development

• Ethics

• Problem Solving Skills

• Decision Making

• Attitudinal Changes

Carrier Development:-

Hindustan Unilever provided both vertical and lateral growth prospects for its employees in all

the business units present in India. India was one of few countries where all the different

business divisions – Research, Development, Testing, Consulting, Sales & Marketing, and

Support – had a significant presence. Employees could move between the business units

according to their areas of interest. Moreover, employees were provided with exposure to

different business units by way of mentoring from senior employees of Unilever.

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TALENT MANAGEMENT

It is a holistic and systematic process, across the group. It is built on the work done so far on

people processes, and has a Talent Identification and Talent Development Strategy for all the 3

levels of management i.e. Senior, Middle & Junior Management. This is facilitated by

Development Assessment Center followed by Individual Development Plan, enabling planned

succession and career management.

The talent management process includes HR process for:-

• Recruitment,

• Performance,

• Compensation,

• Succession planning,

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• Learning and other capabilities around self-service,

• Analytics.

• Reporting.

With businesses going global and competition becoming intense, there is mounting pressure on

organizations to deliver more and better than before. Organizations therefore need to be able to

develop and deploy people who can articulate the passion and vision of the organization and

make teams with the energy to perform at much higher levels.

Talent management is a key business process and like any business process takes inputs and

generates output. Talent management is a professional term that gained popularity in the late

1990s. It refers to the process of developing and fostering new workers through on boarding,

developing and keeping current workers and attracting highly skilled workers to work for your

company. Talent management in this context does not refer to the management of entertainers.

Companies that are engaged in talent management (human capital management) are strategic and

deliberate in how they source, attract, select, train, develop, promote, and move employees

through the organization. This term also incorporates how companies drive performance at the

individual level (performance management).

The term talent management means different things to different people.

• To some it is about the management of high-worth individuals or “the talented”.

• To others it is about how talent is managed generally - i.e. on the assumption that all

people have talent which should be identified and liberated.

Talent management decisions are often driven by a set of organizational core competencies as

well as position-specific competencies. The competency set may include knowledge, skills,

experience, and personal traits (demonstrated through defined behaviours).

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COMPENSATION

Hindustan Unilever offers compensation packages on par or higher than the industry standards

based on the technical skills and experience of the candidates. Employee benefits were

standardized across employees.

The benefit schemes were re-evaluated twice a year. The benefit programs included:

Medical benefits that were aimed keeping the employees healthy and motivated, so as to

reach expected productivity levels.

Tuition assistance programs which included financial assistance to meet tuition expenses

for all employees. This gave them the opportunity to continue their formal education

while working.

A range of professional counseling and support services for employees and eligible

family members

Facilitation for employees to relocate if transferred to help them settle easily in the new

location

Assistance programs in case of emergency for employees and their eligible dependents

travelling on company work to locations worldwide.

Company stock offers to the employees to enable them to share the benefits of the

company’s performance.

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EMPLOYEE ENGAGEMENT

Employee engagement is the measure of how involved and committed the workers are

towards their organization and values. A well engaged employee is well aware of the day to day

happenings of the organization and work with his or her fellow colleagues to improve the

performance of the individual and work s towards the betterment of the organization. It is an

optimistic attitude that the employees hold towards their organization. Employee engagement is

how the employee feels about his workplace employee feels about his workplace and whether he

or she is satisfied with the work or not. It is also concerned with the emotions of an individual

employee, the unique emotional balance of employees and their experience. The employers and

their talent of creating conditions that give rise to employee engagement. Communication among

employees at all levels in the organization.

Engagement assessment: This HR practice plays a crucial role in every organization. Employees

who are engaged perform to their full potential, they are motivated and can also improve their

skills as they progress. Employee engagement plays a vital role in the hotel because it affects

everything from retention and productivity to profitability and safety. In today’s world

organizations have found out various methods of creating competitive advantage. They have

created competitive advantage through innovation, quality products, technology and pricing

technology. Organizations view “customer service that exceeds expectations” as their key to

success. Engaged employees provide quality service. Now there are a numbers of jobs in every

industry but organizations need to focus on the right people for the right job. They should also

make sure that these right people are satisfied with their work.

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REFRANCES

1. http://en.wikipedia.org/wiki/Hindustan_Unilever

2. http://info.shine.com/company/Hindustan-Unilever-Limited/796.aspx

3. http://www.managementparadise.com/pongal1990/documents/8112/best-hr-

practices/

4. http://www.hul.co.in/mediacentre/newsandfeatures/2013/HUL-is-the-No1-

Employer-of-Choice-in-India.aspx/

5. http://www.HUL.co.in/