Hr Project ABHINAV

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PROJECT REPORT

ON

“A STUDY OF HR PRACTICES AT AIRTEL”

Submitted In Partial Fulfillment of the requirement of

Bachelor of Business Administration (BBA)

Guru Gobind Singh Indraprastha University, New Delhi

UNDER THE GUIDANCE OF: SUBMITTED BY:

ABHINAV MAHAJAN

05124001709 BBA(GEN) 5th semester

SESSION: 2009-2012



STUDENT DECLARATION

I here by certify that the project report entitled on “A STUDY OF HR PRACTICES AT

AIRTEL” Submitted in partial fulfillment of the requirement for the award degree of

Bachelor in Business Administration to GURU GOBIND SINGH INDRAPRASTHA

UNIVERSITY ,DELHI (India) is my original work and not submitted or the award of

any other degree, diploma, fellowship, or any other similar title or prizes anywhere else.

ABHINAV MAHAJAN05124001709

BBA(GEN) 5th semester



ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in collecting

necessary information and making of the report. I am grateful to all of them for their

time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would like all

those who have contributed in completing this project. First of all, I would like to send

my sincere thanks to MISS for his helpful hand in the completion of my

project.

ABHINAV MAHAJAN

05124001709 BBA(GEN) 5th semester

)



CONTENT

Chapter 1: Introduction

Chapter 2: Company profile

Chapter 3: Theoretical Framework

1. Human Resource Planning2. Recruitment

3. Selection

4. Training and Development5. Performance Appraisal System

6. Compensation

Chapter 4: A Word About HR Practices at Airtel

1. HR Practices at Airtel2. The DNA of Airtel

3. Employment or Personnel Planning

4. Right-sizing

Chapter 5: Objective

Chapter 6: Research Methodology

Chapter 7: Analysis

Chapter 8: Conclusion

Chapter 9: Limitations

Bibliography

Annexure



1

Chapter-1

INTRODUCTION

Bharti Enterprises has successfully focused its strategy on telecom while straddling

diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to

becoming the largest manufacturer and exporter of world class telecom terminals under

its 'Beetel' brand, Bharti has created a significant position for itself in the global

telecommunications sector. Bharti Tele-Ventures is today acknowledged as one of India's

finest companies, and its flagship brand 'Airtel', has over 4018 million customers across

the length and breadth of India.

While a joint venture with TeleTech Inc., USA marked Bharti‟s successful foray into the

Customer Management Services business, Bharti Enterprises‟ dynamic diversification

has continued with the company venturing into telecom software development. Recently,

Bharti has successfully launched an international venture with EL Rothschild Group

owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets

in Europe and USA.

Bharti Tele-Ventures is one of India's leading private sector providers of

telecommunications services based on an aggregate of 18,616,715 customers as of

January 31, 2006, consisting of 40 MILLION GSM mobile and 1,243,545 broadband &

telephone customers. The company is the only telecom operator in the country to have an

all India footprint with mobile operations in all the 23-telecom circles of India. The



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company is the largest mobile service provider in the country, based on the number of

customers. The company also provides broadband & telephone in 15 circles.

The company complements its mobile, broadband & telephone services with national and

international long distance services. The company also has a submarine cable landing

station at Chennai, which connects the submarine cable connecting Chennai and

Singapore. The company provides reliable end-to-end data and enterprise solutions to the

top corporate customers by leveraging its nationwide fiber optic backbone, last mile

connectivity in mobile and broadband & telephone services, VSATs, ISP and

international bandwidth access through the gateways and landing station.

Too many opportunities, higher growth potentials, most efficient and economic use of

resources and higher profitability is the present core theme of the business of Indian

Telecom Industry. Certainly, the of Indian Telecom Industry is booming up, but the

liberalization of economy has increased the intensity of competition to such an extent that

the major players in order to remain competitive, are putting up continuous effort to

increase their resource strength to generate superior performance and gain comparative

advantage of Indian Telecom Industry being a people based industry, exhibits a clear

dependence on the Human Capital for superior performance. Which is why all most all

the major players in the industry have a strong Human Resource Base and Strong Human

Resource Development Climate. The common goal is to achieve better performance and

productivity through the efficient use of The Human Resource.

In simple terms, HRP is understood as the process of forecasting an organization‟s future

demand for, and supply of the right type of people in the right number. It is only after this

that the HRM department can initiate a recruitment and selection process. HRP is a sub-



3

system in the total organizational planning. HRP facilitates the realization of the

company‟s objectives by providing the right type and the right number of personnel.

HRP, then, is like materials planning that estimates the type and quantity of the materials

and supplies needed to facilitate the manufacturing activities of the organization.

The Human Resources in Airtel are in fact are not resources – but an “Asset”. They call

them “Human Capital”. At Airtel , they believe in valuing people and realizing the

value of people. In Airtel the HR department is considered have the responsibility of job

analysis to be carried out for each job in the structure, on the basis of this analysis, the

best candidate fitting a job is selected. Sometimes if the necessity is felt for the need of

another post in the existing structure in the departments as well as within the factory also

then the HR dept plays a pivotal role in defining the necessity for such a post as well as

the final creation of the post. Moreover they also take care of the reverse process whereby

any post that may be felt was unnecessary may be completely dropped in consultation

with the top management. Sometimes they also may turn the centralized work pattern

followed in any particular dept into decentralized work structure.

Airtel has a culture of employee involvement and participative management. This leads

to enhancement of motivation. Employees of Airtel also bring to the forefront their

hidden talents and creative nature. This inculcates a feeling of belongingness and

ownership of the business. Therefore many HR innovative based practices which have

become a way of life at Airtel. Some of the practices have become very powerful and

many industries as well as business schools keenly request Airtel to share with them.

Airtel has received lot of recognition and awards from various professional bodies under

these HR practices.



4

Chapter-2

COMPANY PROFILE

BHARTI ENTERPRISES

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti

Group, has a diverse business portfolio and has created global brands in the

telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail

Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully

launched an international venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance

Company Ltd under a joint venture with AXA, world leader in financial protection and

wealth management.

Airtel comes to you from Bharti Airtel Limited, India‟s largest integrated and the first

private telecom services provider with a footprint in all the 23 telecom circles. Bharti

Airtel since its inception has been at the forefront of technology and has steered the

course of the telecom sector in the country with its world class products and services. The

businesses at Bharti Airtel have been structured into three individual strategic business

units (SBU‟s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The

mobile business provides mobile & fixed wireless services using GSM technology across

23 telecom circles while the Airtel Telemedia Services business offers broadband &

telephone services in 94 cities. The Enterprise services provide end-to-end telecom



5

solutions to corporate customers and national & international long distance services to

carriers. All these services are provided under the Airtel brand.

Business Divisions

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the

largest mobile service provider in the country, based on the number of customers.

More

The group focuses on delivering telecommunications services as an integrated offering

including mobile, broadband & telephone, national and international long distance and

data connectivity services to corporate, small and medium scale enterprises.

More

http://airtel.in/level2_t11.aspx?path=1/6

http://airtel.in/Level1_t1.aspx?path=2














6

The group offers high speed broadband internet with a best in class network. With

Landline services in 94 cities we help you stay in touch with your friends & family and

the world.

More

The Company compliments its mobile and broadband & telephone services with national

and international long distance services. It has over 35,016 route kilometers of optic fibre

on its national long distance network. For international connectivity to east, it has a

submarine cable landing station at. For international connectivity to the west, the

Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-

ME-WE-4) consortium along with 15 other global telecom operators.


http://airtel.in/Level2_t6.aspx?path=2/41




7

Address And Phone Number

Bharti cellular limited

(A Bharti Enterprise )

Office= D-184, Okhla Industrial Area ,Phase 1,New Delhi 110020

Telephone Number : 9873627304,Fax 51611487

Regd Office : Qutab Ambience ,H-5-12,Mehrauli Road ,New Delhi 110030

Website :www.artelworld.com



8

Vision

By 2010 Airtel will be the most admired brand in India:

• Loved by more customers

• Targeted by top talent

• Benchmarked by more businesses.



9

Bharti·s Mission

To be globally admired for telecom services that delight

customers .

We will meet global standards for telecom services that delight

customersthrough , Customer Service Focus , Empowered Employees



10

Product range of the company

The company is a part of Bharti Enterprises, and is India's leading

provider of telecommunications services. The businesses at Bharti

Airtel have beenstructured into three individual strategic business

units (SBU¶s) - mobileservices, broadband & telephone services

(B&T) & enterprise services. Themobile services group provides

GSM mobile services across India in 23telecom circles, while the

B&T business group provides broadband &telephone services in

90 cities. The Enterprise services group has two sub-units - carriers

(long distance services) and services to corporates. All

theseservices are provided under the Airtel brand.Our Services:

Voice Services

Mobile Services

Satellite Services

Managed Data and Internet Services

Managed e-Data Services



11

ORGANISATION STRUCTURE OF AIRTEL

As an outcome of a restructuring exercise conducted within the company; a new dynamic

organizational structure has emerged; with realigned roles, responsibilities and reporting

relationships of Bharti‟s key team players. With effect from September 01, 2004, this role

model will enable continued improvement in the delivery of the Group‟s strategic vision.

Board Of Directors

Audit Committee

Human Resource (HR)/

Remuneration Committee

Human Resource Committee

ESOP Compensation Committee

Investors Grievance Committee

http://www.bhartiteleventures.com/board_of_directors.0.html

http://www.bhartiteleventures.com/audit_committee.0.html

http://www.bhartiteleventures.com/hr_remuneration.0.html


http://www.bhartiteleventures.com/esop_compensation.0.html

http://www.bhartiteleventures.com/investors_grievance.0.html



http://www.bhartiteleventures.com/esop_compensation.0.html



http://www.bhartiteleventures.com/audit_committee.0.html

http://www.bhartiteleventures.com/board_of_directors.0.html



12

Hierarchy of the airtel bharti company



13

Market Share Of The Company

GSM MARKET SHARE

As per COAI’s March data, Vodafone added 36 lakh users and emerged as the number

1 player in mobile subscriber additions.

Airtel added 30 lakh subscribers in March, out of 1.39 crore GSM subscribers added in

the month.

Here are the rounded up market share numbers (only for GSM players):

http://www.pluggd.in/wp-content/uploads/2010/04/GSMMarketShareinIndia.jpg



14

Position of the Company



15

Chapter-3

THEORETICAL FRAMEWORK

HUMAN RESOURCE PLANNING

In simple terms, HRP is understood as the process of forecasting an organization‟s future

demand for, and supply of the right type of people in the right number. It is only after this

that the HRM department can initiate a recruitment and selection process. HRP is a sub-

system in the total organizational planning. HRP facilitates the realization of the

company‟s objectives by providing the right type and the right number of personnel.

HRP, then, is like materials planning that estimates the type and quantity of the materials

and supplies needed to facilitate the manufacturing activities of the organization.

HRP is also called manpower planning, personnel planning, or employment planning.

Human resource planning is a sequential process embodying the following five elements:

1. Inputs into human resource planning process

2. Analysis of existing human resources

3. Forecast of future human resource needs

4. Implementation of human resource plan

5. Evaluation and redesign of human resource plan



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FUNCTIONS OF HUMAN RESOURCE PLANNING:

There are three functions of human resource planning that can be identified based on the

activities performed by manpower managers. They are:

1. Identification of skills required to accomplish organizational goals and objectives,

2. Making available these skills over a period of time in view of changing

requirements, and

3. Utilization of skills available to the best satisfaction of the participants and the

maximum advantage of the organization in the context of their changing

expectations.

Environment

Organizational

Ob ectives and Policies

HR Need Forecast HR Supply Forecast

HR Programming

Control and Evaluation

Of Pro ramme

HRP Implementation

Surplus

Restricted Hiring

Reduced HoursVRS, La Off etc.

ShortageRecruitment and

Selection



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The HRP Planning Process

Techniques for Determining Human Resource Requirements:

I. Job Analysis: it is the process of determining the tasks involved in the job and

personal qualities of the individuals required to perform the job. It helps in determining

qualitative manpower requirements.

1. Job description

2. Job specification

JOB ANALYSIS: A Process Of Obtaining All Pertinent Job Facts

Job Description: a statement

consisting of

•Job title

•Location

•Job summary

•Duties

•Machines, tools, and equipment

•Materials and forms used

•Supervision given or received

•Working conditions

•Hazards

Job Specification: A statement of human

qualifications necessary to do the job:

•Education

•Experience

•Training

•Judgement

•Initiative

•Physical effort

•Responsibilities

•Communication skills

•Emotional characteristics



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JOB ANALYSIS PROCESS

Strategic Choices

Gather Information

Process Information

Job Description

Job Specification

Uses Of Job Description And Job

SPECIFICATION:

•Personnel Planning

•Performance Appraisal

•Hiring

•Training And Development

•Job Evaluation And Compensation

•Health And Safety

•Employee Discipline

•Work Scheduling

•Career Planning



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STRATEGIC CHOICES:

1. Extent of employee involvement in job analysis

2. Level of details of the analysis

3. Timing and frequency of analysis

4. Past-oriented vs future-oriented job analysis

INFORMATION GATHERING:

- What type of data is to be collected?

- What methods are to be employed for data collection?

- Who should collect the data?

METHODS OF COLLECTING JOB DATA

1. Observation method

2. Interviews

3. Questionnaires

4. Checklists

5. Technical conferences, and

6. Diary

II. Time and motion study: Time study provides a basis for setting „standard‟ times and

accordingly for linking quantitative manpower requirements. Two methods are used for

timing jobs. These are micro-motion pictures and the use of a stopwatch.



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Iii. Historic average technique and manning tables: though historic average technique

is also one of the techniques to determine the quantitative manpower requirement, time

analysis is more in practice in the organizations.

RECRUITMENT

It is the process of finding and attracting capable applicants for employment. The process

begins when new recruits are sought and ends when their applications are submitted. The

result is a pool of applicants from which new employees are selected.

Purposes and importance:

1. Determine the present and future requirements of the organization in conjunction

with its personnel planning and job-analysis activities.

2. Increase the pool of job candidates at minimum cost

3. Help increase the success rate of the selection process by reducing the no. of

under-qualified or over-qualified applicants.

4. Help reduce the probability that job applicants, once recruited and selected, will

leave the organization only after a short period of time.

5. Meet the organization‟s legal and social obligations regarding the composition of

its workforce.

6. Begin identifying and preparing potential job applicants who will be appropriate

candidates.

7. Increase organizational and individual effectiveness in the short-term and long-

term.



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8. Evaluate the effectiveness of various recruiting techniques and sources for all

types of job applicants.

RECRUITMENT PROCESS

5 STAGES:

1. Planning

2. Strategy development

3. Searching

4. Screening

5. Evaluation and control

Recruitment Planning:

- No. of contacts

- Types of contacts

Strategy Development:

- „Make‟ or „buy‟

- Technological sophistication

- Where to look

- How to look

Internal Recruitment

- Present employees

- Employee referrals



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External Recruitment:

- Professional or trade associations

- Advertisements

- Employee exchanges

- Campus recruitment

- Walk-ins, write-ins, and talk-ins

- Consultants

- Contractors

- Displaced persons

- Radio and television

- Acquisitions and mergers

- Competitors

- International recruiting

SEARCHING:

- Source activation

- selling



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SELECTION

Selection is the process of picking individuals (out of the pool of job applicants) with

requisite qualifications and competence to fill jobs in the organization.

Recruitment and selection are two crucial steps in HR process and are often used

interchangeably. There is however, a fine distinction between the two steps. While

recruitment refers to the process of identifying and encouraging prospective employees to

apply for jobs, selection is concerned with picking the right candidate from a pool of

applicants. Recruitment is said to be positive in its approach as it seeks to attract as many

candidates as possible. Selection, on the other hand, is negative in its application

inasmuch as it seeks to eliminate as many unqualified applicants as possible to identify

the right candidate.

SELECTION PROCESS:

BARRIERS TO EFFECTIVE SELECTION

The main objective of the selection is to hire people having competence and commitment.

This objective is often defeated because of certain barriers. These barriers are perception,

fairness, validity, reliability and pressure

Perception

Our views are highly personalized. We all perceive the world differently. Therefore our

limited perceptual ability is obviously a stumbling block to the objective and rational

selection of people.

Fairness



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Fairness in selection means that no individual should be discriminated against on the

basis of religion, region, race or gender.

Validity

Validity means that tests which are used as means of selection and it helps in predicting

job performance of an incumbent. A test that has been validated can differentiate between

the employees who can perform well and those who will not.

Reliability

A reliable method is one which will produce consistent results when repeated in similar

situations. Like a validated test, a reliable test may fail to predict the job performance

with precision.

Pressure

Pressure is brought on the selectors by politicians, bureaucrats, relatives, friends and

peers to select particular candidates.



25

TRAINING AND DEVELOPMENT

Defining Training

Training is the act of increasing the knowledge and skills of an employee for doing a

particular job. The major outcome of training is learning. A trainee learns new habits;

refined skills and useful knowledge during the training that helps him improve

performance. Training enables an employee to do his present job more efficiently and

prepare himself for a higher job.

Features Of Training

Increases knowledge and skills for doing a job

Bridges the gap between job needs and employee skills

Job oriented process, vocational in nature

Short term activity designed essentially for operatives

Training often has been referred to as teaching specific skills and behaviour.

Development in contrast is considered to be more general than training and more oriented

to individual needs in addition to organisational needs and it is most often aimed toward

management people.

Training is meant for operatives and development is meant for managers.



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Objectives Of Training

To impart the basic knowledge and skill to the new entrants and enable them to

perform their jobs well.

To equip the employee to meet the changing requirements of the job and the

organization

To teach the employees the new techniques and ways of performing the job or

operations

To prepare employees for higher level tasks and build up a second line of competent

managers.

A Systems Approach To Training

From the broadest perspective, the goal of training is to contribute to the organization‟s

overall goal. Training programs should be developed with this in mind. Managers should

keep a close eye on the organization goals and strategies and orient training accordingly.

To make certain investments in training and development have maximum impact on

individual and organizational performance, a systems approach to training should be

used. The systems approach involves four phases:

1. Needs Assessment

2. Program Design

3. Implementation

4. Evaluation



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THE TRAINING PROCESS

1. CONDUCTING THE NEEDS ASSESSMENT

Managers and HR staff should stay alert to the kinds of training that are needed, where

they are needed, who needs them. If workers consistently fail to achieve productivity

objectives, this might be a signal that training is needed. Likewise, if organizations

receive an excessive number of customer complaints, this too might suggest inadequate

training. To make certain that training is timely and focused on priority issues, managers

should approach needs assessment systematically by utilizing the three types of analysis.

1. ORGANIZATION ANALYSIS

The first step is needs assessment is identifying the broad forces that can influence

training needs. Organization analysis is an examination of the environment, strategies,

and resources of the organization to determine where training emphasis should be placed.

2. TASK ANALYSIS

Task analysis involves reviewing the job description and specification to identify the

activities performed in a particular job and the KRAs needed to perform them.

3. PERSON ANALYSIS

Person analysis involves determining which employees require training, and equally

important, which do not. In addition, person analysis helps managers determine what

prospective trainees are able to do when they enter training so that the programs can be

designed to emphasize the areas in which they are deficient.



28

2: DESIGING THE TRAINING PROGRAM

TRAINEE READINESS AND MOTIVATION:

Two preconditions of learning affect the success of those who are to receive training:

readiness and motivation.

Trainee readiness refers to both maturity and experience factors in the trainee‟s

background. Prospective training should be screened to determine that they have the

background knowledge and skills necessary to absorb what will be presented to them.

The precondition of learning is trainee motivation. Individuals who are conscientious,

goal oriented, self-disciplined and persevering are more likely to perceive a link between

effort they put into training and higher performance on the job. By focusing on the

trainees themselves rather than on the trainer or trainee topic, managers can create a

training environment that is conducive to learning. Six strategies can be essential:

1. Use positive reinforcement

2. Eliminate threats and punishment

3. Be flexible

4. Have participants set personal goals

5. Design interesting instruction

6. Break down physical and psychological obstacles to learning

3: IMPLEMENTING THE TRAINING PROGRAMME

In order to organize various training methods, we will break then down them two primary

groups: those used for non-managerial employees and those used for managers.



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Training methods for non-managerial employees:

On the job training:

The most common method used for training non-managerial employees is on-the-job

training (OJT). In fact, one estimate suggests that organizations spend three to six times

more on OJT than on classroom training. OJT has the advantage of providing hands on

experience under normal working conditions and an opportunity for the trainer – a

manager or senior employee-to build good relationships with new employees.

Apprenticeship Training

It is an extension of OJT. With this method, individuals entering industry, particularly in

the skilled trades such as machinist, laboratory technician, or electrician, are given

through instruction and experience, both on and off the job I the practical and theoretical

aspects of the work.

Cooperative training, Internships and Governmental Training

Similar to apprenticeships, cooperative training programs combine practical on-the job

experience with formal classes. However the term „cooperative training‟ is typical ly used

in connection with high school and college programs that incorporate part or full time

experiences.

Many organizations including Fannie Mae, Burger King, Champion International, Pacific

Telesis Foundation, Cray Research and UNUM life insurance, have strong ties to public

schools and invest millions of dollars in educational programs.



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Classroom instruction

Beyond its pervasiveness in education, classroom training enables the maximum number

of trainees to be held by the minimum number of instructors. This method lends itself

particularly to training in the areas where information can be presented in lectures

demonstrations, films and videotapes or through computer instruction. Where it is not

possible to collect the videotapes, audiotapes can be very valuable.

Programmed instruction

One method of instruction that is particularly good for allowing individuals to work at

their own pace is programmed instruction. Programmed instruction – increasingly referred

to as self-directed learning-involves the use of books, manuals or computers to

breakdown subject matter content into highly organized, logical sequences that demand

continuous response on the part of the trainee. After being presented with the small

segment of information, the trainee is required to answer a question, either by writing it

on a response frame or by pushing a button. If the response is correct, the trainee is told

so and is presented with the next step in the material. If the response is incorrect, further

explanatory information is given and the employee is told to try again.

A major advantage of programmed instruction is that incorporates a number of the

established learning principles. With programmed instruction, training is individualized,

trainees are actively involved in the instructional process, and feedback and

reinforcement is immediate.



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Audiovisual methods

To teach skills and techniques for many production jobs, certain audiovisual devices can

be used. Other technologies such as CDs, videodiscs, and more recently, DVD, take

audiovisual technology further by providing trainees interactive capability.

Extending video technology, teleconferencing, or video conferencing allows an

instructional programme to be transmitted to many locations simultaneously and permits

immediate interaction among trainees. These methods are becoming quite powerful as

tools for bringing continuing distance education to life. For example, MIT.

Computer based training

CBT encompasses two distinct techniques: computer assisted instruction (CAI) computer

managed instruction (CMI). CAI system delivers training material directly through a

computer terminal in an interactive format. Computer makes it possible to provide drill

and practice, problem solving, simulation, gaming forms of instruction, and certain very

sophisticated forms of individualized tutorial instructions. At Airtel, this type of training

is confined only to imparting software usage training.

A CMI system is normally used in conjunction with CAI, there by providing an efficient

means of managing the training functions. CMI uses a computer to generate and score

tests and to determine the level of trainee proficiency. CMI systems can also track the

performance of the trainees and direct them to appropriate study material to meet their

specific needs.

A summary of the advantages include the following:

1 Learning is self-paced.



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2 Training comes to the employee.

3 Training is interactive.

4 New employees do not have to wait for scheduled training session.

5 Training can focus on specific needs as revealed by built-in tests.

6 Trainees can be referred to online help or written material.

7 It is easier to revise a computer program than to change classroom-training material.

8 Record keeping is facilitated.

9 The training can be cost effective if used for a large number of employees.

Simulation Method

It is an attempt to create a realistic decision-making environment for the trainee.

Simulation present likely problem situations and decision alternatives to the trainee.

Eg: activities of an organization may be simulated and the trainee may be asked to make

a decision in support of those activities. The results of those decisions are reported back

to the trainee with an explanation of what would have happened had they actually been

made in the workplace. The trainee learns from this feedback and improves his/her

subsequent simulation and work place decisions.

The more widely held simulation exercise is case study, role playing and vestibule

training.



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PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is the method of evaluating the behavior of employees in the

work-spot, normally including both the quantitative and qualitative aspects of job

performance. It is a systematic and objective way of evaluating both work-related

behavior and potential of employees. It is a process that involves determining and

communicating to an employee how he or she is performing the job and ideally,

establishing a plan of improvement.

Performance appraisal is a broader term than Merit Rating. In the past, managers used to

focus on the traits of an employee while ranking him for promotions and salary increases.

Employee‟s traits such as honesty, dependability, drive, personality etc. were compared

with others and ranked or rated. The attempt was to find what the person has (traits)

rather than what he does (performance). This kind of performance appraisal system was

open to criticism because of the doubtful relationship between performance and mere

possession of certain traits.

Essential features of an appraisal system:

1. It is a systematic process.

2. It provides an objective description of an employee‟s job‟s relevant strengths and

weaknesses.

3. It tries to find out how well the employee is performing the job tries to establish a

plan for further improvement.

4. The appraisal is carried out periodically, according to definite plan.



34

5. Performance appraisal is not job evaluation. It refers to well someone is doing an

assigned job, whereas job description finds out how much a job is worth to the

organization and what range of pay should be assigned to the job.

6. Performance system may be formal or informal.

Essential characteristics of an effective appraisal system:

1. Reliability and validity:

Appraisal system should provide consistent, reliable, and valid information, which can be

used to defend the organization – even in legal challenges. Appraisals must also satisfy

the condition of validity by measuring what they are supposed to measure.

2. Job relatedness:

The appraisal technique should measure the performance and provide information in job

related activities.

3. Standardization:

Appraisal forms, procedures, administration of techniques, ratings, etc. should be

standardized as appraisal decisions affect all employees of the group.

4. Practical viability:

The techniques should be practically viable to administer, possible to implement and

economical to undertake continuously.

5. Legal sanction:

Appraisals must meet the laws of the land. They must comply with provisions of various

acts relating to labor.



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6. Training to Appraisers:

Because appraisal is important and sometimes difficult, it would be useful to provide

training to appraisers viz., some insights and ideas on rating, documenting appraisals and

conducting appraisal interviews.

7. Open communication:

Most employees want to know how well they are performing the job. A good appraisal

system provides the needed feedback on a continuing basis. The appraisal system should

permit both parties to learn about the gaps and prepare themselves for future.

8. Employee access to results:

Employees should know the rules of the game. They should receive adequate feedback on

their performance. Permitting employees to review the results of their results allow them

to detect any errors that may have been made. If they disagree with the evaluation, they

can even challenge the same through formal channels.

9. Due process:

Formal procedures should be developed enable employees, who disagree with the

appraisal results to challenge the same. They must have the means for pursuing their

grievances and having them addressed objectively.



36

Steps to be followed while introducing an efficient potential appraisal system:

1. Role descriptions:

Organizational roles and functions must be defined clearly. To this end, job descriptions

must be prepared for reach job.

2. Qualities needed to perform the roles:

Based on job descriptions, the roles to be played by the employees must be prepared (i.e.

technical, managerial jobs and behavioral dimensions)

3. Rating mechanisms:

Besides listing the functions and qualities, the potential appraisal system must list

mechanisms of judging the qualities of employees such as:

- Rating by others: The potential of a candidate could be rated by the immediate

supervisor who is acquainted with the candidate‟s work in the past, especially his

technical capabilities.

-Tests: Managerial and behavioral dimensions can be measured through a battery of

psychological tests.

-Games: Simulation games and exercises (assessment centre, business games, in-basket,

role-play etc.) could be used to uncover the potential of a candidate.

-Records: Performance records and ratings of a candidate on his previous job could be

examined carefully on various dimensions such as initiative, creativity, risk taking ability

etc., which might play a key role in discharging his duties in a new job.



37

4. Organizing the system:

After covering the above preliminaries, he must set up a system that will allow the

introduction of the scheme smoothly giving answers some puzzling questions as:

How much weightage to merit in place of seniority in promotions?

How much weightage to each of the performance dimensions – technical, managerial,

behavioral qualities?

What are the mechanisms of assessing the individual on different indicators of his

potential and with what reliability?

5. Feedback:

The system must provide an opportunity for every employee to know the results of his

assessment. “He should be helped to understand the qualities actually required for

performing the role for which he thinks he has the potential, the mechanisms used by the

organizations to appraise his potential and the results of such an appraisal”.

Objectives of performance appraisal:

Compensation decisions

Promotion decisions

Training and development programs

Feedback

Personnel development.



38

Who will appraise?

Supervisors

Peers

Subordinates

Self-appraisal

Users of services

Consultants

At Airtel, There are 3 levels :

Firstly, there is self appraisal. Secondly, Supervisor appraisal and thirdly,

Appraisal by functional head.

The performance appraisal process:

Establish performance standards

Communicate the standards

Measure actual performance

Compare actual performance with standards and discuss the appraisal

Taking corrective action, if necessary



39

PERFORMANCE APRAISAL TECHNIQUES

Individual evaluation

methods

Multi-person evaluation

methodsOther methods

- Confidential report

- Essay evaluation

- Critical incidents

- Checklists

- Graphic rating scale

- Behaviorally

anchored rating scales

- Forced choice

method

- Management by

objectives

- Ranking

- Paired comparison

- Forced distribution

- Performance tests

- Field review technique

Methods of performance appraisal:



40

Feedback:

WORKPLACE FEEDBACK:

The term workplace feedback implies two things:

Job performance: whether the employee is capably performing specific tasks that

have been assigned

Work-related behavior: the way the employee performs his tasks, whether he

speaks politely to customers and works cooperatively with other team members.

Norms to be followed by the appraiser and the appraisee while giving and receiving

feedback:

1. Adequate preparation: the process should be a continuous one. Informal/formal

meetings should take place every now and then to put the employee on the track.

One-to-one meetings should be conducted in an atmosphere of mutual trust,

understanding and friendship.

2. Describe behavior:

Precautions to be taken while assessing behavior:

Future-oriented

Goal-oriented

Listen to the recipient

Data-based feedback

Suggestive



41

Reinforcement

Continuous

Need-based and solicited

3. Proper timing: Feedback must be well-timed. It should be given immediately after

the event has taken place.

4. Help both parties: to be effective the feedback should satisfy the needs of the

appraiser as well as the appraisee.

METHODS OF PERFORMANCE:

1. Traditional performance rating: it involves completion of a form by the immediate

supervisor of the individual who is being evaluated. In some cases, attempts are made to

accomplish the rating by a committee consisting of an immediate supervisor, the

supervisor‟s superior and one or more officers of the company who are familiar with the

ratee. The conventional rating form is designated as graphic rating or rating scale

incorporating several factors such as job knowledge, judgement, organizing ability,

dependability, creativity, dealing with people, delegation, leadership and personal

efficiency and others.

2. Newer rating methods

Rank-order procedure

Paired comparison system

Forced distribution procedure

Critical incident



42

Field review technique

360 degree feedback:

Many firms have expanded the idea of upward feedback into “360 degree” feedback.

Ratings are collected „all around‟ an employee, from supervisors, subordinates, peers,

and internal or external customers. According to one study, 29% of the responding

employers already use 360-degree feedback also called multi-source assessment and

another 11% had plans to implement it. The feedback is generally used for development,

rather than for pay increases.

Management by objectives (MBO):

Management by objectives is described as the process in which the superior and the

subordinate managers of an organization jointly identify its common goals, define each

individuals‟ major areas of responsibility in terms of results expected of him and use

these measures as guides for operating the unit and assessing the contributions of each

members. MBO thus, represents more than an evaluation program and process.

MBO: KEY ELEMENTS:

1. Arranging organizational goals in a means-ends chain

Corporate goals functional goals work group task goals

2. Engaging in joint goal setting

3. Conducting periodic progress reviews, and

4. Conducting annual performance review.



43

COMPENSATION

Definition

Wages have at least two connotations from the standpoints of employers and employees

in organizational settings. First, the employers perceive wages as a cost of their business

efforts and are keen to reduce labour cost per unit of output. Second, employees consider

wages as means for satisfying their needs in terms of expected standard. They desire to

receive at least as much remuneration as other individuals equipped with similar skills get

for doing similar work.

At Airtel, the bell curve system is followed in slabs based on KRA achievement as

below:

<90%----Poor contibutor

90%- 100%---Good contributor

100%-115%---Significat contributor

115% - 125% ---exceptional contributor

These KRAs are given in year beginning and checked mid-term based on KPIs(kep

Performance Indicators). These are also regularly monitored inmonthly reviews with

reasons.

Elements

There are seven elements or issues in wage and salary administration:

1. Pay levels relate to the problem as to whether the wage structure is high, average

or low.



44

2. Internal pay structure relates to the hierarchy f pay rates, pay grades, and job

classification.

3. Individual pay system relates to the classification of individuals into job titles

and pay grades involving determination of how much compensation they should

be paid.

4. Payment by time relates to remuneration paid in terms of time spent on the job.

5. Fringe benefits and pay supplements in the form of insurance, pensions, paid

holidays, bonuses, profit sharing and allied factors.

6. Control of wages and salaries it is exerted by several measures such as a table of

organization, annual review of job classifications, evaluation of incentive plans

and careful budgeting of pay increases.

Wage components

There are five wage components: basic wage, dearness allowance, overtime, bonus and

fringe benefits.

Basic Wage It is stable wage paid over a period of time-monthly, weekly or daily. It can

also be considered as the normal rate for a specified level of output. Thus for a particular

job involving its varied requirement such as skills and training, it commands a price to

get it done. It does not fluctuate.

Dearness allowance (DA):- The system of DA payment was used for the first time after

World War I to enable the workers to meet the steep rise in prices of essential

commodities such as food-stuffs. Although called by various names, the special

allowance thus paid aimed at neutralizing the high cost of living and protect the real



45

wages of the wage earners. In other words, the major purpose of DA payment was to

provide relief to the workers confronted with inflationary conditions by attempting to

offset the cost of living with additional allowance.

Incentives:-Incentives refer to variable rewards granted to the individuals in terms of

changes in specific results in organizational settings. They are devised to play a causal

role in conjunction with rewarding the effect.

Fringe Benefits:- These refers to benefits such as payment for vacations, holidays, sick

leaves, work clothes, eating time, transportation, insurance protection, pension programs

and allied issues. In the past these things did not form an important component of the

employee‟s income and were designated as „fringe benefits‟. However at present these

payments are a significant part of the employee‟s compensation system.



46

CHAPTER-4

A WORD ABOUT THE HR PRACTICES AT AIRTEL

Early this year, premier cellular service provider Bharti Cellular, operating under the

brand-name of Airtel, was adjudged the `Company with the Most Innovative HR

Practices in the Asia Pacific Region' at the Asia Pacific HRD conclave held in Mumbai.

Anil Nayar, executive director of the firm, says the award is the culmination of

concentrated efforts in HRD, which Airtel initiated in 1996.

“We did the job quietly. And at every moment of truth, we checked if our team had the

right attitude to realise the vision statement of the company,” says Nayar.

During the learning phase, the most important part Airtel general manager(HR) Arun

Kumar Padhi had to play was to actually check if “people enjoyed their roles”. “We

didn't want anyone to treat his position as a mere job. Now when we look back, it

emerges that we had undertaken strong team- building activities,” says Padhi.

Airtel decided to go in for a very young team. The average age is just 26years. Nayyar

believes this has helped the HR department to mould the young entrants to the company.

``But having decided to take in relatively less experienced professionals, we did not want

to curb their creativity or interaction,'' says he.

The senior management was advised to walk the talk and ``invite criticism from the

employees''. ``Initially, the younger professionals were circumspect about airing their

views. But with better interaction with the senior managers, they began to play a more

pro-active role in team-building efforts,'' he says.



47

Airtel's HR success was powered by a well defined rewards and recognition system. This

was backed by a strong training programme. ``Unlike most other organisations, we let

our employees decide their training needs. And if the individual does not know what his

training needs are, then we don't need him,'' says Nayar.

To encourage learning within the organisation, the company has set up a state-of-the-art

learning centre. Here, employees can get logged on to customised training programmes

developed by British Telecom (BT). Though the material is transmitted through the

Internet, Padhi says that they are not accessible to anybody outside the organisation as the

access is protected. Airtel also seeks to certify every employee on quality and IT. ``To be

ahead in the business, we need to train, develop and re-certify our employees on a

continuous basis,'' he says.

Over the years, it is the HR steering committee (HRSC) of the company that has acted as

the fulcrum of the HRD efforts in the organisation. HRSC consists of the CEO, the COO

and all other functional heads. The committee meets once a week to discuss various

initiatives and the plan of action on the same.

To carry forward these plans, the entire organisation is measured on five performance

parameters: profitability, market share, brand saliency, customer satisfaction, and

employee satisfaction. Further, each employee is given individual targets that are linked

to these five parameters.

Eventually, there are the performance-related bonuses that set the tone for these activities.

Padhi informs us that 60 per cent of the employees are on a variable pay structure, and

that explains the success Airtel has had in business and HRD.



48

Padhi's team also conducts an internal employee satisfaction survey called PACE

(Progressive Assessment of Culture and Environment), the inputs of which go into the

company's annual strategy.

“Measurement is indeed a key driver of business within Airtel. A philosophy of constant

monitoring has been established. `Measurement Boards' for every department are

prominently displayed where the performance indicators of the same are displayed

graphically,'' says Padhi.

“We believe that an individual can be effective if he knows what is expected of him.

Formal job description documents have been issued to all our employees that clearly

mention the `key result areas'. This goal setting has helped us in communicating to each

of our employees about our experiences from them, and established role clarity,'' he adds.

The HR department also sets up cross-functional teams in times of product or service

launches. ``Such teams typically constitute high performers from each department, who

collectively make it happen,'' says Padhi.

Some of the other key HR initiatives include the managers' communication forum, open

house, family group meetings, HR interface and HR intranet. To explain them, the

managers' communication forum, undertaken once a quarter, facilitates direct interaction

of the employees with the top management.``They get to discuss issues relating to the

performance of the previousquarter, directions for the next quarter, an update on the

regulatory environment and the key initiatives for the period,'' says Nayar.

The `open house' conducted between the departments and HR takes up individual

grievances. In the case of family group meetings, each HOD conducts meetings with his



49

direct reportees once a month, wherein issues other than those related to work are

discussed.

To further HR interface, every member of the HR department has been assigned two

departments each to discuss and sort out all HR, personnel and administration issues.

``The idea is to provide employees with a single window to the department,'' Padhi

explains.

The HR Intranet provides information on HR policies, organizational structure, training

calender and the house journal.

With these initiatives, Nayar says, ``Airtel has won a special place in the Bharti group.

The quality of service and customer care is a reflection of the quality of people and our

belief in constant improvement and upgradation.''

On the business side, Airtel has won the Techies award for three consecutive years in

1997, 1998 and 1999. The HR award will galvanise the company to touch even greater

heights.



50

HR PRACTICES AT AIRTEL

HUMAN RESOURCE DEPARTMENT at Airtel

The Human Resources in Airtel are in fact are not resources – but an “Asset”. They

call them “Human Capital”. At Airtel , they believe in valuing people and realizing

the value of people.

In Airtel the HR department is considered have the responsibility of job analysis to be

carried out for each job in the structure, on the basis of this analysis, the best candidate

fitting a job is selected. Sometimes if the necessity is felt for the need of another post in

the existing structure in the departments as well as within the factory also then the HR

dept plays a pivotal role in defining the necessity for such a post as well as the final

creation of the post.

Moreover they also take care of the reverse process whereby any post that may be felt

was unnecessary may be completely dropped in consultation with the top management.

Sometimes they also may turn the centralized work pattern followed in any particular

dept into decentralized work structure.

Airtel has a culture of employee involvement and participative management. This leads

to enhancement of motivation. Employees of Airtel also bring to the forefront their

hidden talents and creative nature. This inculcates a feeling of belongingness and

ownership of the business. Therefore many HR innovative based practices which have

become a way of life at Airtel. Some of the practices have become very powerful and

many industries as well as business schools keenly request Airtel to share with them.



51

Airtel has received lot of recognition and awards from various professional bodies under

these HR practices.



52

THE DNA OF AIRTEL

At the CEO Conclage in Macau, in October, they deliberated upon the key elements that

clearly distinguish the essence Airtel. As a result of this deliberation they recognized that

the following four attributes that they have so far associated with their brand are as much

the driving force for all in the organization. In fact, these are what they call their DNA.

To bring this “Airtel DNA” to life, they have defined what these mean from „people

perspective”:

FRESH - Seek Opportunities and Solutions by being Innovative and Enterprising

IN TOUCH - Stay Connected by being Aware and Sensitive

ON MY SIDE - Build Relationships with Empathy and Understanding

CAN DO - Strive for success with Passion and Accountability

To ensure that this DNA is a part of their everyday behavior, their leadership

competencies are now aligned and have a clear established linkage with it. Further, given

their stupendous growth, they also revisited the critical behaviors that will accelerate their

journey towards achieving the 2010 vision of being the most admired brand in India.

Critical to their individual and collective success are 5 competencies defined across the 3

spheres of Customer, People and Business:



53

1.Displaying Entrepreneurial Spirit- Has a passion to win! Seizes business

opportunities and converts them into valuable results. Has an innovative and fresh

outlook, and thrives on continuous change. Dreams BIG!

2. Achieving Business Success - Contributes towards building a dynamic and sustainable

business, based upon a sound understanding of business and financial realities. Commits

to working towards the long term goals. Adheres to company strategies and policies, and

encourages others to do so.

3. Empowering & Developing- Maintains a continuous focus on development of self

and others. Nurtures and cultivates diverse talent in the business. Aligns performance to

organizational goals

4. Building Collaborative Relationships- Proactively develops internal and external

relationships and strives for a 'win-win' solution. Collaborates, willingly shares

information and manages conflict. Demonstrates sensitivity and respect when dealing

with others.

5. Delighting the Customer- Enthusiastically adheres to a customer first culture and

seeks to deliver customer service excellence. Engages with customers and seeks to make

their life easy. Ensures promise made is promise kept- with integrity.

These leadership competencies will guide their actions and behaviors and become the

foundation of their people processes and systems.



54

Employment or Personnel planning

At Airtel planning is done at a constant level as they do not have any fixed cycle for

planning. Some times its done in accordance with the business strategies of the firm for

that year. The planning process is greatly influenced by various factors such as:-

1. Projected turnover( as a result of terminations or resignations)

2. Strength, quality and skills of the present employees

3. Current business

4. Target business

5. Strategic decisions to improve or upgrade the quality of the service

6. Technological and other changes in the business environment

7. Financial resources available to each department.

These factors influence the decisions regarding the personnel planning. Once these

factors are analyzed, the requirement, if any, of new employees are stated. Decisions

relating to:

a) How many new employees are required to meet the business demands?

b) At what levels recruitment should be done?

c) What would be the Payroll cost – current vis-a-vis budgeted?

d) Where to get people from?

e) How to reach potential candidates?.....e.t.c. are addressed.



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RIGHT-SIZING IN AIRTEL

Reorganising a company‟s employees in order to improve their efficiency is called

Right-sizing. Reason may vary from changes in product demand/technology to raising

per person productivity to competition. Some of the methods followed are:

Senior management offered handsome severance pay.

Freezing of vacancies (hiring freeze)

Enlarge jobs

Agreement with trade unions to reduce working hours and wages, if required for a

short time.

Encouraging employees to take long leave, earned or half pay.

Airtel is currently in this mode. Their strategy involves centralizing every process to

Gurgaon and is planning to go into factory mode or the call centre setup. A new software

is being introduced for this and is expected to be in place by April 2007. One of their

action plan includes keeping only connections process in circle. Eg. The FOS going in for

an activization call only will be registered and attending to the call from start to end.

Secondly, in next one month the on rolls manpower is expected to be reduced. They are

conducting continuous audit and surveys to take preferences from employees in terms of

their preferences for department and location. Then they shall determine who would be

shifted to which profile depending majorly on competencies.



56

RECRUITMENT AND SELECTION

This is a very important task for the organization as it has to invest a large amount in

improving the skills set of a future employee . Hence the process is very rigorous and

through. Once the requirements from various departments has come to HR, then the

process of recruitment starts. Airtel use both internal and external sources for recruitment.

Depending upon the job profile it would go for the process. Say they need to recruit

agents for sales, then they would go for external sources but if they want Sr. Managers

they would prefer an internal source who could give a recommendation.

Internal Sources:

i. Own Databases

ii. Job posting in Newspapers

iii. Employee referrals

iv. Temporary work pools

Airtel is inclined to Referral system as the referor can be held directly responsible as

well as they have a well designed payout structure to promote employee references.

External sources:

i. Consultants

ii. Jobsites – Monster.com, Naukri.com etc.

iii. Own website- www.airtel.com

iv. Campus – B Schools ( For Lower Level mgmt)

http://www.airtel.com/

http://www.airtel.com/



57

The recruitment process varies with the kind of job profile. Say if they are recruiting

telesales executive, then the parameters they would be judging them on would be their

communication skills and soft skills. If a technical graduate is to be considered then they

would conduct a written test also to check his proficiency for that profile.

Airtel recruits employees at various level starting from:-

Telesales Executive

Graduate Enggs

Management Trainees

Team Leaders

Sr Executives

Managers with work Ex.

The applications are invited through different media which includes:

Job posting or internal notices,

Trade journals (for technical jobs)

Business papers and magazines (Business Today )

MBA websites (for mgmt. trainees at junior level)

Newspaper advertisement(-do-)

An important policy is regarding middle level executives upwards where in they only

recruit through referrals.



58

After they have identified the pool of candidates, they conduct a written test to ascertain

their knowledge about the language. Then they segregate the suitable candidates and

conduct a group discussion.

After which an interview is conducted. And finally the short listed candidates have an

interview with HR. The process is generally the same but sometime slight modifications

are done according to the job profile.

Training and Development

Training refers to the methods used to give new or present employees the skills they need

to perform their jobs. For the new employees the training period starts with the

Orientation and Induction programme.

At Airtel, there is a mid term assessment for training needs and an annual assessment.

Each employee is asked to identify 2 strengths out of the competencies and one

opportunity. There are identification levels as follows

First level Identification: Superior tells where is the training need.

Second level Identification: Employee states individual training needs.

This is sent to HR and HR then plans how to design the career progression path. There

could be training needs such as leadership, team building (if weak team member),

customer care, or mentorship. Workshops are then conducted. This exercise is followed

for each employee. The reporting manager maintains a booklet called “red book” and

notes instances, positive and negative in terms how s/he has performed against

parameters as COC (code of conduct), competency etc. these are then discussed during



59

monthly reviews and opportunity is given to bring to light issues pertaining to boss

inpresence of his superior inturn.

Orientation Programme: This is a one day programme for all the new incumbents of

the organization. This is the first day at the organization. After a brief introduction about

the company by a senior official each new recruit is being given a „Joiners Kit‟. This

carries various information like policy statements relating to working hours, leave, gift

policies, dress codes, compensation policy, mobile policy, provident fund policies, time

expense statement reports etc.

Induction programme:This marks the beginning of the formal training schedule. This is

a 3 days programme wherein all the new incumbents are taken to a five star hotel during

the three day period. There they meet with the top management of the organizationwhich

then delivers the welcome address to the new employees and informs them about the

vision and mission of the organization. This programme also helps in developing good

camaraderie among the employees.

Following the induction programme, the employees undergo technical and soft skill

training. This is common for both the new and the present employees whose skills are to

be developed. The soft skill training is for approximately 1 week.

Technical training: this includes job related, functional training. It is also known as on-

the-job training. It is imparted by the senior officials of each department to their juniors.

It is done on regular basis.

For a telesales agent that would mean getting rained on the process of taking calls and the

process of making records in the tools that they might be using to record their calls . The

various products that are being offered.



60

Soft Skill training: this is done mostly by experts from outside the organization.

Emphasis is led on developing soft skills of employees like team playing ability,

behavioral and managerial training etc. This training is imparted through various OD

programmes and also through MDPs which are executed at two levels- the individual and

group.

This would include various voice and accent classes to decrease MTI, and dealing with

various situation regarding different types of customers etc.

The training and development programme results in the socialization of the employees

among themselves and also alignment with the organizational culture and objectives.

For old employees the T & D helps in improving the working skill and efficiency.

Apart from these, occasional lectures by industry experts and senior officials are also held

from time to time to appraise the employees about the recent developments in the

business.



61

PERFORMANCE APPRAISAL

For any quality conscious company performance appraisal is an important and effective

tool to know how its most important resource that is people is performing and Airtel is no

different here also performance appraisal is given a lot of importance to not only improve

the performance of the employees but also to make sure that the effective employees are

adequately rewarded so that they remain motivated to perform in the organization

For convenience we only discussed the appraisal methodology of an executive on the

floor.

The main Appraisal come from the Team Leader whose ahs actually observed the

employee close hand. Also there is continuous feedback from the quality deptt

which continuously does the monitoring.

Also the feedback that comes form the customers is also taken in to account while

evaluating the employee.

And before this the employee is given a form to do his self appraisal.

And beyond this there is a continuous method of appraising the employees about there

daily performance in terms of reports that are generated in mis which are shown to each

person so that he can evaluate his performance. At the end of the month the ratings are

added and a combine score is achieved according to which the various employees are put

into different buckets (like green for best, blue mediocre etc).



62

Compensation at Airtel

Compensation is one of the critical part of Airtel policies so they did not disclose that.

Though, we could collect a rough estimate of the salary structure from the pay slips of

customer care officers working at Airtel. There are several salary structures depending on

the designation for which the employee works. For example, in Airtel telesales you have

an executive. A mentor, a team leader, a manager. So it became difficult to get the

compensation details.

Despite these facts, we did observe a certain pattern followed in all the pay slips. The

salary structure understood by us was of the format:

1. Basic salary

2. House Rent allowance

3. Dearness Allowance

4. Transport Allowance

5. Food Allowance

6. Incentive

7. Provident Fund

- Employee‟s share

- Company‟s share

8. Net salary



63

Airtel is the leading company in the telecom sector which is growing at such a rapid

pace thus is throwing up jobs in thousands hence there are a large number of

employees who want to join Airtel and make a carreer.

The salary structure of a customer care executive is as follows:

1. Basic salary…………………………………...Rs.4000

2. House Rent allowance……………………....Rs.3500

3. Dearness Allowance…………………………Rs.1000

4. Transport Allowance…………………………Rs.1200

5. Food Allowance………………………………Rs.900

6. Incentive(variable)...………………………….Rs.1500

Rs.12100

7. Provident Fund

- Employee‟s share………………………….Rs.375

- Company‟s share…………………………..Rs.375

8. Net salary……………………………………...Rs.11350



64

Chapter-5

Objective

To assess and analyse the impact of the strategic HR practices on organisational

performances with special reference to the practices in the Airtel.

To understand and identify the core HR practices prevailed in the industry.

To understand how the integration of strategic HR practices with organizational goals

is successful in motivating the employees and generating better performance.

The main objective of the selection is to hire people having competence and

commitment. These barriers are perception, fairness, validity, reliability and pressure.



65

CHAPTER-6

RESEARCH METHODOLOGY

The ongoing section will discuss the research methodology adopted to arrive at and

achieve the stated objectives of the research. HR practices on organisational

performances with special reference to the practices in the Airtel, the study followed the

below mentioned research approach.

PRIMARY DATA COLLECTION:

For primary data collection the case study method will be used which has used a semi-

structured interview schedule for better probing of the facts. They were open-ended and

were supplemented with appropriate probing questions to gain further insights into the

issues. The interviews were conducted with the managers.

SECONDARY DATA COLLECTION:

The study has adopted document based data search using the secondary data. Both the

document based data and multi source secondary data were used substantially.

The important data sources were Text Books, journals from various databases,

Companies Annual reports, and related websites were also used.



66

Chapter-7

ANALYSIS

Q1. Integration of HRM with corporate strategy?

Responses No. of responses

Agree 14

Moderately Agree 4

Neutral 2

Integration of HRM with

corporate strategy

70%

20%

10%

Agree

Moderatelyagree

neutral



67

Most of the Managers agreed that HRM is an integral of their main business strategy. The

business understands the importance of human capital. The success of business is highly

dependant on the success of the human performance and HR policies and practices deals

with human issues related to selecting and motivating the employees to work successfully

towards the organizational Goal. The success of any business strategy is largely

dependant on the conducive HR polices.



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Q2. The Integration of HR Strategies with organizational Goals?

Responses No. of responses

Yes 20

No 0

Existence of Integration

100%

Yes

All the Managers stated that there is obvious integration of HR strategies with

organisational goal. In fact the integration takes place at the functional and structural

level. The integration is visualized through the strategic implementation of the core HR

practice.

HR practices like, Training and development, performance appraisal and Recruitment and

selection are very often moulded according to the goal of the organisation.



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Q3. Core HR strategies important for integration

Strategic HR practices importance No. of responses

Training and Development 12

Performance Appraisal 8

Around 75 percent of the Managers believed that Training and development followed by

a conducive performance appraisal system are the most important H.R practices that

validate the true integration. They graded the importance of the training to be 60 % and

performance appraisal system to be 40 %. Through continuous training programme the

corporate develops orientation amongst the employees to work together toward the

attainment of the greater organizational goal. Performance appraisal system up grades the

employees capabilities and ultimately motivates them to perform according to the goal

expectations.

Core HR practices

60%

40% Taining and

development

performance

appraisal



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Successful integrations generate better performance, which can be evidenced by the

continuous better performances of MUL, Honda SIEL, and Hero Honda. All the

managers believed that it is the integration that keeps the employees motivated and

results in the increase in the per capita productivity, which finally generates better

organizational performance.

Q4. Do you have formal appraisal system in your organization?

Pie-chart shows that all respondent have agreed to one point and that is organization do

have a formal appraisal system.

100%

0%

Yes

No



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Q5. How Frequently You Go For Training?

Learning at Bharti is a continuous process and they learn at each and every stage. The

education and training team continuously strive to make its colleague learn as frequent as

possible. So that they are always prepared for any situation to face the competitive world.

Proper training of employee is held as per the need and requirement of the employee

related to the work he is assigned. So that he can do his best. But still if we see people

frequently go for training.

6

9

4

5

6 6

0

1

2

3

4

5

6

7

8

9

10

Frequently Non-frequently

Monthly Quarterly Half yearly Annually



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Q6. Any Feedback Taken?

Yes feedback is taken from the trainee after the training is over. In terms like whether

they liked the training, which they had undergone, was that sufficient enough to make

them handy and competitive to go with. If not then what can be done which make it easy

and handy to understand. If they are looking for any kind of further training keeping in

mind any consecutive training related to previous undergone and if any new conceptual

training emerged as on.

0

2

4

6

810

12

14

16

18

YES NO

17

3



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Q7. Kind Of Training?

Training small word covering wide connotation, is the way you groom some one in

different environment and ways available as per the capacity as well as availability. On

the complexities of it training is imparted to individual. At Airtel employees have been

undergone in almost all the above category but most of them feel it should be held off the

job so that they can concentrate approximately in what ever they are taught, where as

they feel that some training like 6 sigma, 5s, Kaizan should be help on the job for its

effectiveness.

15

9

11

3

14

0

2

4

6

8

10

12

14

16

In-house Outhouse Online Offline All above



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Q8. Need Identification?

As already discussed in brief in report as to how it should be done so root of problem can

be traced out and accordingly it can be treated well for the best output. There are so many

ways to identify the cause of the problem. Over here we discussed 3 main causes where

by few find that 3 of them are very much in use in industry. That is employee himself,

performance appraisal, and superior assessment. Here we can see that the best to know

about you is he. He can be monitored by the team head too who sees him working

regularly and if found then can recommend him to undergo training.

38%

39%

23%

Superior assessment Employee himself Appraisal



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Q9. The Integration of HR Strategies With organizational Goals?

All the Manager stated that there is obvious integration of HR strategies with

organisational goal. In fact the integration takes place at the functional and structural

level. The integration is visualized through the strategic implementation of the core HR

practice.

HR practices like, Training and development, performance appraisal and Recruitment and

selection are very often moulded according to the goal of the organisation.

Existance of Integration

100%

1



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Chapter-8

CONCLUSION

The study of the Human Resource activities at Airtel brings out the importance of HR as

a discipline for any organization big or small. Airtel today is one of the most respected

companies in the world and much of the credit for this goes to the management‟s ability

to manage its human resources. An organization is by the people, of the people and for

the people. As such it is very essential for any organization to realize the importance of

its human capital which is rare, valuable and immutable. It defines the competitive

advantage of the organization. As was rightly said by a visionary corporate leader that

“…..take away my organization but leave my men, and I will build a similar organization

within no time..”. Today organizations are putting a lot of their effort to develop their

human capital.



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Chapter-9

LIMITATIONS

1. The time of doing the project , as well as the no. of appointments with the company

were limited to study the HR activities in detail .

2. The information provided by the HR Manager was limited regarding certain issues ,

like : compensation etc.



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BIBLIOGRAPHY

Mamoria,C.B and Gankar,S.V (2002) “Human Resource Management” Published

by Himalaya Publishing House.

Virmani, B.R. And Seth Premila (1985) “Evaluating Management Training and

Development” Published By Vision Book Pvt Ltd

Human Resource Management- a perspective Harward Business Review 2000

Economic Times, Business World

www.indiainfoline.com

www.bharti.com

www.airtelworld.com

http://www.indiainfoline.com/

http://www.bharti.com/

http://www.bharti.com/

http://www.indiainfoline.com/



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QUESTIONNAIRE

Q1. Integration of HRM with corporate strategy?

Agree Moderately Agree

Neutral

Q2. The Integration of HR Strategies with organizational Goals?

Yes No

Q3. Core HR strategies important for integration

Training and Development Performance Appraisal

Q4. Do you have formal appraisal system in your organization?

Yes No

Q5. How Frequently You Go For Training?

Frequently Non-frequently

Monthly Quarterly

Half yearly Annually

Frequently

Q6. Any Feedback Taken?

Yes No



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Q7. Kind Of Training?

In house Outhouse

Online Offline

All above

Q8. Need Identification?

Superior assessment Employee himself

Appraisal

Q9. The Integration of HR Strategies With organizational Goals?

Existence of integration

Hr Project ABHINAV

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