PROJECT - REPORT

HR PRACTICES IN MAWANA
SUGARS LTD.

Institute of Management Technology

Raj Nagar, Ghaziabad
2008-2010

Submitted by:
Ankur Vashishtha 08IT-007
Gaurav Pandey 08IT-013
Harsh Aggarwal 08IT-014
Sachin Ahuja 08IT-027
Tejash Sheth 08IT-030
Amit Kumar Sharma 08IT-034
GROUP NO: 6

CONTENTS
1
1. OBJECTIVE...................................................................................1
2. METHODOLOGY.........................................................................1
3. QUESTIONNAIRE-1.....................................................................2
4. QUESTIONNAIRE-2.....................................................................3
5. COMPANY INTRODUCTION....................................................4
6. DEPARTMENT STRUCTURE....................................................5
7. COMPANY PROFILE..................................................................6
8. CURRENT HR SYSTEMS...........................................................8
9. CHALLENGES FACED.............................................................11
10. RECOMMENDATIONS...........................................................12
11. LIMITATIONS..........................................................................13
12. REFERENCES...........................................................................13

Contact info:
Pankajrai Mittal - 9810206549
Badri Vishal(HR) - 9873223216

OBJECTIVE
1
The objectives of the present study is to “Study the
Ongoing HR Practices in Mawana Sugars and their effectiveness”
Following fundamental objectives have been identified as the sub-Objectives of the
study:-
1. To identify top 10 challenges faced in HRM by the company.
2. To link our HR theoretical concept with practical implementation.
3. To understand the HR systems existing in the company.

METHODOLOGY
METHOD OF DATA COLLECTION
The data was collected through primary source by questioning the concerned
authority with the help of questions prepared for all the functions of HRM.
Secondary data was collected by company’s brochures and websites.

INSTRUMENT USED
We used two questionnaires; One for understanding the HR systems in the
company and another for understanding the challenges in HRM faced by the
company.

Note: Questions were prepared to facilitate the interview process with HR

person.

QUESTIONNAIRE-1 (Understand current systems)

Understanding HR strategy
1
Q. What is the structure of your HR Department?
Q. What is your company’s HR strategy?
Q Who develops HR strategy? Do you assemble a cross functional team for the
purpose?
Q.Do you perform a gap analysis of current vs. desired organizational behavior and
performance and develop strategy to bridge the gap?

Understanding Manpower Planning

Q. How do you create a manpower plan?

Understanding Recruitment & Selection procedure

Q. What is the current recruitment process adopted by your company?
Q. How do you describe the qualification requirements for the vacant position?
Q. What is the selection process of your company?

Understanding Employee Retention practices

Q. What programs exist for employee retention?

Understanding Training &Development system

Q. What is current training and development system for employees?

Understanding Performance Management system

Q. What type of performance management system do you use?
Q. Do you give constructive feedback to increase employees’ performance?

Understanding Succession planning system

Q. What is the current system of succession planning?

Understanding Retirement Policy

Q. What are the current retirement policies?
Q. Does your company have pre – retirement programmes for your employees?

Communication between management and employees happen?

Q. Do you create an environment of open communication between employees and
management?

QUESTIONNAIRE-2(Identify challenges in HRM)

Manpower planning
Q. What are the challenges you face in Manpower planning?
Q: What kind of challenges you face if budget for manpower is limited?
1
Q: What kind of challenges you face in season? Do you face any problem with
temporary staff?

Leave Management
Q: What problems you face if someone takes leave without information and the
work needs to be done immediately?
Q: What problems you face if someone does not have balance leaves?

Training
Q: What challenges you face in training employees according to requirement?

Recruitment
Q: Do you face problem in recruitment like enough applications are not received
for a job?
Q: Do you find problem in reaching people for key positions?

Selection
Q: Is it a challenge to decide a suitable person if more person are suitable for a job?

Performance management
Q: What issues are faced in performance appraisal of people? Why are people not
satisfied if there are some?

Succession planning
Q: Is there time a challenge for finding a new person for key role?
Q: Is there a compromise done sometimes on compensation for such hires?

TOP CHALLENGES
Q: Out of these challenges which would you rate as top 3 challenges in HRM?

MAWANA SUGARS LTD.

1
COMPANY
NAME -
MAWANA
SUGARS LTD.

TOTAL EMPLOYEES - 2100 Permanent Employees

TOTAL REVENUE - 800 – 1000 crore

COMPANY
CLSSIFICATION - Manufacturing industry

…. for a sweeter life

…MITHAS ZINDAGI KI

1
Mawana Sugars Limited was merged with SIEL Limited in terms of the Scheme of
Arrangement (‘Scheme’) approved by the Honorable High Court of Delhi vide its
order dated September 11,2007.
By order of even date the Honorable High of Delhi has also sanctioned the
reduction of the paid up capital of the merged company of
Rs.7395,08,081(including the entitlement pursuant to the Scheme) consisting of
7,39,50,808 equity shares of the face value of Rs.10/- each fully paid up (including
the entitlement pursuant to the Scheme) to an amount of Rs.24,63,86,251
consisting of 2,46,38,625 equity shares of the face value of Rs.10/- each fully paid
up by canceling equity share (including entitlement) capital of Rs.49,31,21,830
which amount shall be credited to the “General Reserve” account of the Company.

Mawana Sugars Limited (Formerly known as SIEL Limited) emerged as an

independent entity in 1989 out of the restructuring of the erstwhile DCM Group.
Mawana Sugars has been engaged in the business of manufacture and selling of
chemicals, sugar and edible items.

The Mawana Sugars Brand Consumer pack branding

Pioneered in 1992: our intentions –

• From commodity to packaged
• Clean/Hygiene
1
 • Correct weight surety
• Consistent quality surety
• Over one thousand shops and sponsorships.

Today it is the largest selling sugar retail brand, with the highest brand recall due to
promotional activities like:
• Sponsorship on Red FM, which has a huge listenership
• Special edition Songs CD ‘Lamhe’ sold through retail music shops
Association with brand
• Purity cleanliness/Health/Family Value

Strong Distribution Network

• Consumer pack branded sugar travels through Mawana Sugar’s well
established FMCG distribution channel reaching 10,000 retail outlets all
over Northern India along with famous oil brands such as Panghat, Cornola,
and Ruby etc.

CURRENT HR SYSTEMS

Company’s HR Strategy
• Developed by cross functional team.
• Period for formulating HR Strategy-3 years.
It includes:
• Performance management.
• Efforts for improving goodwill.
• Contribution in decision making for every department.
• Narrowing the gap between blue collar and white collar workers.

1
 • Welfare of employees.
• Efforts to retain employees.

Manpower Planning
• Evaluation of current man power.
• Estimation of required man power in each department.
• Finally, decision for total man power requirement.

Job Description
• It is written by departmental head.
• Then it gets approved by functional executive director HR.

Recruitment
Fresh Blood Recruitment
• Campus Recruitment from agricultural colleges as it is a cane based Co.
• From MBA colleges.
Lateral Recruitment
• Through Consultancies
• Advertisements
• Employee Reference
• Employment Exchange

Selection
• CVs are short listed by HR dept.
• Short listed CVs are sent to concerned dept.
• Concerned dept. informs HR dept. to call the candidates.
• HR dept. invites those candidates for interview.

Hiring Decision:
• On the basis of series of interviews- psychometric test, integrity test,
technical test.
• Interview panel- members of concerned dept, some senior executives, at
least 1 member of HR dept.

Training & Development

• Training of 6 months for fresh blood- first 3 months Job Rotational Training
and last 3 months Job Instruction training.

1
 • During appraisals Training required by the employee is identified and then
the employee undergoes that training within or outside company.
• Temporary employees assist a person on regular job thus on-the-job training.
• Cross skilling: for example - budgeting for HR person as it is required in
preparing manpower budget.

Retention Programs
Plant level Employees
• School
• Township
• Festival celebration
Corporate level Employees
• Formal and Informal Get-together
• Inter-unit competition
• Holi & Diwali
• Cultural activity celebration

Retention - Some interesting steps taken

• Initially strict Attendance system to report within 10 minutes of scheduled
time – later discarded and 45 minutes delay in a month was permitted.
• Parents-teacher meetings - 2 times in a month people can come late.
• Subsidized third party Canteen but food was not clean to eat - discarded
canteen, now every Friday new attraction like Nirula's items are displayed
and employees can choose which items they want for next week.
• Going out of way: A person joined recently so no accrued leaves. He
mentioned during interview that he wants leaves for higher studies exams
but interviewer not noted – later leave granted.

Performance Management
• Employee is evaluated on his Key Resultant Area (KRA) in accordance to
his boss
• Performance review discussion conducted after every quarter and also after
every year
• In case of dispute – settlement by moderation committee.
• SWOT analysis is done and improvement areas are identified.

Succession Planning
• 2 years for succession planning of retiring person.
1
 • 3 months for other employees.
• Succession plan of the company is based on the skill level of the particular
employee
• Way of handling the job
• Behavior and attitude.
• They refer to consultants also for such hires.

Retirement Policy
• Retirement age – 58 years.
• Person is informed 3 months before the retirement.
• A farewell is organized for the retired person.
• No pre-retirement scheme exists.

Communication Between management and Employees

• Formal and Informal get-togethers
• Group Discussions

MEDIA USED TO COMMUNICATE WITH EMPLOYEES:

• Emails
• Notice boards
• Newsletter
• Seminars / Conferences
• One to one basis

CHALLENGES IN HR MANAGEMENT
The most crucial challenges identified by HR of the company are increasing
motivation of employees and retain the existing employees. All the other
challenges are majorly the subset of these challenges. Thus top 2 challenges faced
in HRM are:

1. Motivation.
2. Retention.

1
Some other challenges identified by HR of the company are:
• Changing the image of HR from a support function to a function of value
creation.
• Manpower planning if forecast is not correct then getting people on demand
is not easy when the time available is short.
• If Job description is not proper then selected person is not playing proper
role and hence leads to inefficiency and high de-motivation levels.
• Deciding when to go out of way to take the decision.
• To select a person with a certainty that he/she joins the company (especially
for key role). For example – A person was recruited for a key role after a
planning of 2months but he did not join and a position remained vacant for
next 1 month.
• Getting temporary employees as no one is ready to work as temporary
employee but due to seasonal nature of business this is a requirement. Thus,
generally administrative staff works on temporary basis during peak season.
• Motivating for Cross-skilling since people do not want to change their job
and don’t want to be out of their comfort zone.
• Participation from employees from lower levels as low level employees
think that their point of view does not matter.

SUGGESTIONS
After gathering a wide variety of information on the HR policies of the company,
few recommendations are worth attention.

1. Communication from low level employee to high level managers should be

made easy and comfortable.
2. Teamwork in all operational process must be encouraged.
3. Trainings should be allowed at will in addition to mandatory trainings.
4. For retention they should focus on taking feedback from employees about
the things that hinder their willingness to work and should rectify.
1
 5. New measures should be found to deal with management practices that are
outdated.
6. Benchmarking policy should be there to have latest systems in the company
as compared to the competitors.
7. Dependency on consultants for lateral hiring and succession planning should
be reduced.

LIMITATIONS
There were few limitations, which were faced while conducting this project but
these limitations could not restrict the progress and completion of the present
study.
Some of the limitations that crept in the study are as under:-

1. All the information was not shared by the company but most of the relevant
information was shared.
1
2. Many times employees were busy, due to some work of the organization.
3. A separate questionnaire for enquiring challenges faced in the company was
made as there was a communication gap between understanding of the problems
that are encountered and this data was then later gathered by interview.

REFERENCES
WEBSITE: -
1. www.mawanasugars.com
2. www.google.co.in
3. www.yahoo.com
4. www.explorehr.com
5. www.wikipedia.org

Contact info:
Pankajrai Mittal - 9810206549
Badri Vishal(HR) - 9873223216