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UNIVERSITY OF MUMBAI

PROJECT REPORT ON

Human Resource Management of


Amul Company

SUBMITTED BY
PRANAV.S.SANGLE

MASTERS IN COMMERCE - MANAGEMENT (Part I)

UNDER THE GUIDANCE OF:


Prof. Sangita Kanojia

BHARTIYA VIDYA BHAVANS,


JAYARAMDAS PATEL COLLEGE OF COMMERCE &
MANAGEMENT STUDIES
Mumbai-400007
2015-2016

CERTIFICATE
This is to certify that Pranav somnath sangle of bhartiya vidya bhavans College
from MCOM - Management (Part I) has completed project on Human Resource
Management of Amul Company during academic year 2015-2016 under my
guidance and supervision. No part of this report has ever been submitted for any
other degree. The information submitted is true and original to the best of my
knowledge.

Internal Examiner

External Examiner

DATE:
PLACE:

DECLARATION

I, Pranav somnath sangle of BHARTIYA VIDYA BHAVANSS,JAYARAMDAS


PATEL COLLEGE OF COMMERCE & MANAGEMENT STUDIES from
MCOM - Management (Part I), hereby declare that I have completed project on
HUMAN RESOURCE MANAGEMENT OF AMUL COMPANY in the
academic year 2015-16, under the guidance of PROF.SANGITA KANOJIA as per
the requirement of the University of Mumbai as a part of Masters In Commerce Management (Part I) programme. The information submitted is true and original
to the best of my knowledge

PROF.SANGITA KANOJIA
FACULTY OF MANAGEMENT

ACKNOWLEDGMENT

I owe a great many thanks to a great many people who helped and
supported me during this project.
My deepest thanks to the Guide of this project Professor SANGITA
KANOJIA , for guiding and correcting various documents of mine with attention
and care. She has taken pain to go through the project and make necessary
correction as and when needed.
I would also thank my Institution and my faculty members without whom
this project would have been a distant reality. I also extend my heartfelt thanks to
my family and well wishers.

INDEX

Sr.

PARTICULARS

No.

Page
No.

Introduction

Amul Organization Profile

Introduction of Human Resource Management

History of Amul Organization

Organization Structure of Amul

12

Functions of Human Resource Department of Amul

15

Human Resource Information System Of Amul

23

HRM Environment

29

Case Study On Human Resource Information System Of


Amul

32

10

Futuristic Vision

37

11

Influencing Factors of 21st Century

38

12

Conclusion

39

13

Biblography

40

INTRODUCTION
AMUL is a co-operative sector. It is the institution of the farmers, for the
farmers and from the farmers. The AMUL gives pleasure to the farmer to charge
the own price, which was not possible in earlier years. This union was born on
14th December 1946. The union provides facilities to its members like more
return, satisfactory price, insemination, first aid, group Insurance, cattle food at
confessional price etc.
I have done case analysis on HRIS of AMUL and from that I have come to
know how organization operates and how the functions have been carried in the
organization. From this is case I have come to know how a wide organization like
AMUL manages its
AMUL dairy has five main departments like finance, personnel,
commercial, milk procurement and production. The finance department does the
clerical work and takes care of inflow and outflows of the cash. The other work of
finance Department is to audit of annual work.
The personnel department handles the work regarding personnel like
appointment, recruitment, promotion, transfer, dismissal, demotion, performance
appraisal etc.

Organization Profile

Name

: Kaira District Co- Operative Milk Producers


Union Limited, Anand.

Form

: Co-Operative Sector under the Co- Operative Society Act.

Reg.Office

: Kaira District Co-Operative Milk Producers Union Ltd,


Anand -3881001. Gujarat, India.

Promoters

(1) Shri Tribhuvandas Patel


(2) Shri Morarji Desai
(3) Shri Vallabh Bhai Patel

(4) Dr. Varghese Kurien

Auditors

: Special Auditors (Milk), Milk Audit Office Anand.

Socities

: 1113.

Members

: 6, 31,333.

Office Time

: 10:00 A.M To 06:00 P.M.

Premises

: 49.55 Acres.

Registration

: 14th December, 1946.

Introduction
Human Resource Management:
Human Resource Management has come to be recognized as an inherent
part of management, which is concerned with the human resources of an
organization. Its objective is the maintenance of better human relations in the
organization by the development, application and evaluation of policies,
procedures and programmes relating to human resources to optimize their
contribution towards the realization of organizational objectives.
In other words, HRM is concerned with getting better results with the
collaboration of people. It is an integral but distinctive part of management,
concerned with people at work and their relationships within the enterprise. HRM
helps in attaining maximum individual development, desirable working
relationship between employees and employers, employees and employees, and
effective modeling of human resources as contrasted with physical resources. It is
the recruitment, selection, development, utilization, compensation and motivation
of human resources by the organization.
Human resources may be defined as the total knowledge, skills, creative
abilities, talents and aptitudes of an organization's workforce, as well as the
values, attitudes, approaches and beliefs of the individuals involved in the affairs
of the organization. It is the sum total or aggregate of inherent abilities, acquired
knowledge and skills represented by the talents and aptitudes of the persons
employed in the organization.
The human resources are multidimensional in nature. From the national
point of view, human resources may be defined as the knowledge, skills, creative
abilities, talents and aptitudes obtained in the population; whereas from the
viewpoint of the individual enterprise, they represent the total of the inherent
abilities, acquired knowledge and skills as exemplified in the talents and aptitudes
of its employees.

The Amul Meaning


AMUL means priceless in Sanskrit. A quality control expert in Anand
suggested the brand name AMUL from the Sanskrit word Amoolya variants,
all meaning priceless are found in several Indian languages. Amul products
have been used in millions of home since 1946.
Today Amul is a symbol of many things; of high quality products sold at
reasonable prices; triumph of indigenous technology; of the marketing savvy of a
farmers organization and proven model for dairy development.
Motto
The main motto of AMUL is to help farmers. Farmers were the foundation
stone of AMUL. The system works only for farmers and for consumers, not for
profit. The main of AMUL is to provide quality products to the consumers at
minimum cost. The goal of AMUL is to provide maximum profit in terms of
money to the farmers.
Vision
Vision of AMUL is to provide and vanish the problems of farmers (milk
producers). The AMUL apparition was to run the organization with co-operative
of four main parties, the farmers, the representatives, the marketers, and the
consumers.
Quality Policy
The motivated and devoted work force of AMUL are committed to
produce whole some and safe foods of excellent quality to remain market leaders
through deployment of quality management system, state of art technology
innovation and eco- friendly delightment of customer and betterment of milk
producer.

History
In early 1940s a farmer in Kaira district, as elsewhere in India, derived his
income almost entirely from seasonal crops. The income from milk was paltry and
could not be depended upon. The main buyers were milk traders of Polson Ltd.-a
privately owned company that enjoyed monopoly for supply of milk from Kaira
to the Government Milk Scheme Bombay. The system leads to exploitation of
poor and illiterate farmers by the private traders.
However, when the exploitation became intolerable, the farmers were
frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a
leading activist in the freedom movement. Sardar Patel advised the farmers to sell
the milk on their own by establishing a cooperative union, instated of supplying
milk to private traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order
to gain his Co-operation and help. Shri Dasai held a meeting at Samrkha village
near Anand, on January 4, 1946. He advised the farmers to from a society for
collection of the milk. These village societies would collect the milk themselves
and also decided prices for that which would be profitable for them. The district
union was also from to collect the milk from such village cooperative societies
and to sell them. It was also resolved that the government should asked to buy
milk from the union.
However, the government did not seem to help farmer by any means. It
gave the negative response by turning down the demand for the milk. To respond
to this action of government, farmer of Kaira district went on a milk strike. For 15
days not a single drop of milk was sold to the traders. As a result the Bombay
milk scheme was severely affected. The milk commissioner of Bombay then
visited Anand to assess the situation. Finely he decided to fulfill the farmers
demand.

10

Thus their cooperative unions were forced at village and district level to
collect and sell milk on a cooperative basis, without the intervention of
government. Mr. Verghese Kurien had main interest in establishing union who
was supported by Shri Tribhuvandas Patel who convinced farmers in forming the
cooperative unions at the village level. The Kaira District Co-operative Milk
Producers Union was thus established in Anand and was registered formally
under section 10 of Bombay Act VII of 1925 on December 14, 1946. Since then
farmers are selling all the milk in Anand through cooperative union. In 1955 it
was commonly decided the sell milk under the brand name Amul.
At the initial stage only 250 liters of milk was collected every day. But
with the growing awareness of the benefits of the co-cooperativeness the
collection of milk increased. Today Amul collect 50, 00,000 liters of milk every
day. As the milk is perishable commodity it became difficult to preserve milk for a
longer period. Besides when the milk was to be collected from the far places there
was a fear of spoiling of milk. To overcome this problem the union thought to
develop the chilling unit at various junctions, which would collect the milk and
could chill so as preserve it a for a longer period. Thus, today Amul has more than
168 chilling centers in various villages. Milk is collected from almost 1097
societies.
With the financial help from UNICEF, assistance from the government of
New Zealand under the Colombo plan, of Rs. 50 million for factory to
manufactory milk powder and butter. Dr. Rajendara Prasad, the president of India
laid the foundation on November 50, 1954. Shri Pandit Jawaharlal Nehru, the
prime minister of India declared it open at Amul dairy on November 20, 1955.
A plant to manufacture balanced cattle feed was formally commissioned
on October 31, 1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At
the request of the government of India, a new dairy with a capacity to
manufacture 40 tons of milk powder and 20 tons of butter a day was completed in
1963. This was meant to meet the requirement of Indias defense forces. The dairy

11

was declared open by ShriMorarji Desai in April, 1965. in 1974, the Kaira Union
setup a plant to manufacture high-protein weaning food, chocolate and malted
food at Mogar, about 8 km south of Anand.
In September, 1981, the second cattle feed plant at Kanjari were started.
The succesion of the co-generation project on September 11, 1985, marked a
milestone on the energy front when two gas turbine generators of 1.5 MW each
based on natural gas, were commissioned. On October 31, 1992, Dr. V. Kurien
chairman, National Dairy Development Board, laid the foundation of Kaira
Unions third dairy with a processing capacity of 6.5 lakh liters of milk a day.
Work on the third dairy and cheese plant at Khatraj with capacity for 20 Metric
Ton of cheese per day, began in February, 1994. Also in 1994, Kaira Union put up
bread spread plant at Mogar with the assistance from National Dairy
Development Board.

12

Organization Structure of Amul


Board of Director

Chairman

Managing Chairman

General Manager

Assistant General Manager

Manager

Deputy Manager

Assistant Manager

Senior Executive

Senior Officer

Senior Assistant

Workers

Grade (A to E)

13

Human Resource Department

Introduction:
According to Scoot Clothier And Spriggel Human resource management
as the branch of management which is responsible on a staff basis for
concentrating on those aspects of relationship of management to employees and
employees to employees and with the development of the individual and the
group. The objective is to attain maximum individual between employer and
employees and effective molding of human resources as contrasted with physical
resources.
Personal (Human resource) management plays a very important role for
any organization. The firm having all types of resources like machines, materials,
money, information etc. will not be success in business without effective
manpower. Human capital is the greatest assets of business enterprise and
manpower management is the most important and crucial job because the
managing group is the heart of the company.
Human resource department plays most important role in establishing good
relation and harmony among all.

Total Employees in Amul

14

AUTHORITY

NO. OF EMPLOYEES/WORKERS

Manager

48

Assistant

101

Officers

180

Workers

846

Total

1175

No. Of Shift:

1st shift time: 08:30 A.M to 04:30 P.M


2nd shift time: 04:30 P.M to 12:30 A.M
3rd shift time: 12:30 A.M to 08:30 A.M

Function of Human Resource Department

1.

RECRUITMENT AND SELECTION

2. TRAINING AND DEVLOPMEN


3. PERFORMANCE APPRAISAL

15

4. SALARY AND WAGE ADMINISTION


5. EMPLOYEE TURNOVER
6. COMPENSATION
7. INDUSTRIAL RELATION
8. FACTORE ACT
9. INDUSTRIAL DISPUTE ACT
10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Recruitment and Selection Function

Recruitment:
There are two types of Recruitment sources followed by Amul:
EXTERNAL SOURCE
INTERNAL SOURCES

16

Internal Sources:
Internal sources include personnel already on the payroll of the
organization.
Present Permanent Employees.
Employee Referrals
Former Employee

External Sources :
These sources lie outside the organization In Amul they consider
following sources for recruitment:
Campus Interview
Unsolicited Application
Application Blank
Placement Agencies

Selection:
Selection procedure is concerned with securing relevant information about
the applicant. The main objective of selection process is to determine whether an
applicant meets the qualification for a specific job and choose the application that
is most likely to perform well in the job. The Selection process in AMUL is as
under
Vacancy in any department

17

Approval from M.D

Advertisement

Collection of application

Securitize the application

Interview

Medical checkups

Selection

After selection, the employees generally have probation period. In


AMUL probation period is different for different type of employees.
Probation period for officers is 12 months, 6 months for clerical
employees and 3 month for workers.

Training and Development


It is a subsystem of an organization. It ensures that randomness is reduced
and learning or behavioral change takes place in structured format. Training is the
process where the work related knowledge, skills and attitude are given to new
employees. By which they aware the policies rules and increase technical and
manual efficiency and create of responsibility.

AMUL has accepted three methods for the training


1. On the job method

18

2. Off the job method


3. In house training
4 Out house training

Training Procedure in Amul

Identification of need of Training

Module Preparation

Selection of Employee for the Training

Training

Feedback

Performance Appraisal
Performance appraisal is the process of evaluating the performance and
qualification of employees in terms of the requirement of the jobs for which they
are employed. It is highly useful in making decision regarding the promotion,
transfer, wage and salary administration etc. The AMUL adopts the following
appraisal system
Promotion Period

Appraisal For

1 year

Managers

3 year

Officers

1 year

Workers

1.5 year

Temporary workers

19

Final confirmation with the recommendation by the divisional heads


comes from the MD

on annual basis. His work is evaluated by Check list

Method of Performance Appraisal. These are a various method used to appraise


the performance of an employee. In Amul the following methods are used

Self Appraisal
If individuals understand the objectives they are expected to achieve the
standards by which they are to be evaluated they are to a great extent in the best
position to appraise their own performance .in this method employee himself.

Managers Appraisal
The general practice is superiors appraise the performance of their
subordinate. Other supervisors, who have close contact with employees work
may also appraise with a view to provide additional information. A higher level
manager appraise the employees for their performance.
In Amul various attributes consider for the appraisal of employee.
Job knowledge
Work output
Quality of work
Interest in work
Initiatives
Past records
Seniority
This appraisal is also the rating scale. Method appraiser also appraised employee
by following.
Outstanding
Good
Satisfactory
Poor

20

The overall assessment is done through above rating and also the comment of
reviewing officer is included. Apart from this the performance in liked allowance
is provided in relation with performance that is,
25%
50%
100%
Not allowed
This is provided by and under knowledge of under Managing Director
Generally in Amul on base of performance appraisal employee of managerial
level gets specials allowance. While for workers they get promotions

Wages and Salary

A common method is followed for the wage and salary administration


according to Muster roll .
Timekeeper sends that muster roll to the account department for
attendance of each and every employee. This will analyze and entered
in the computer.
After this salary is calculated for each employee through computer
according to that they prepare salary sleep of employees.

Wage Structure (Approx)


Post

Grade

Payscale

Managing Director

Manager

21000-28000

General Manager

Manager

15000-21000

Assistant General Manager

Manager

7000-15000

21

Assistant

Clerical

2500-7500

Senior clerk

Worker

2000-5000

Human Resource Information System of Amul


Human Resource Information System (HRIS) is a systematic way of
storing data and information for each individual employee to aid planning,
decision making, and submitting of return and reports to the external agencies.

It merges HRM as a discipline and in particular its basic HR activities and

processes with the information technology field.


It can be used to maintain details such as employee profiles, absence reports,

salary administration and various kinds of reports.

Objectives:

To understand, how human resource being managed by the organization.

To study the maintenance of the records of their employees.

To study if organization is using ICT for HR functions and to maintain


database.

To study the users perception about HRIS

Definition:
A Human Resources Information System, is a system that lets you keep
track of all your employees and information about them. It is usually done in a
database or, more often, in a series of inter-related databases

22

Human Resources are an organizational function that deals with issues such as
recruitment and selection, training, appraisal, compensation and performance
management of the employee.
Information System:
A system, whether automated or manual, that comprises people,
machines, and/or methods organized to collect, process, transmit, and disseminate
data that represent user information.
Introduction:

An information system is an inter-related set of procedures and processes


to provide information for decisions. Information is data that have been processed
so that they are meaningful. It adds to the representation of an idea. It corrects and
confirms previous information. It tells us something which we did not know.
Many organizations have computer-assisted information systems. Thus HRIS is a
system that enables storing of information of Human Resource in every aspect
such as Personal, Academic, Qualification, Family, Medical, Career and
Performance Evaluation, Training & Development & Wage and Salary of
individuals. Unlike manual systems the HRIS enables availability of all such
information in a single screen. Reports on various parameters can be generated
with ease. Moreover reliability of such records is assured.

An information

management is referred to as HRIS a human resource information system.


Human resource management, when it doesnt include the human resource

system especially developed

for human resource

planning function, requires only a basic HRIS. If this basic HRIS is


computer-supported, it is likely to include transition processing system or
management information system.

23

An information system provides for the accumulation by gathering,


processing by deleting extraneous information, deciding among divergent
information and putting the information in a logical arrangement that

promotes its understanding.


Finally, the information is stored in a readily accessible configuration.

HR Information System Includes:


This system includes the employee name and contact information and all
or some of the following:

Department
Job Title
Grade
Salary
Salary History
Position History
Employee details (Personal & Professional)
Employee Posting information on appointment /transfer
Employee promotion/ appointment information
Employee Service verification details
Employee Leave Information including(Leave available , leave availed,)
Employee confidential report information
Employee Training information

24

Needs of HR Information System

Human resource manager requires considerable amount of data for


planning and control of human resources and for this there is a strong need

of a sound information system.


Efficiently storing each employee information and data for referencepersonal data management, pay roll accounting, benefits management and

planning.
Enabling informed decision making in day-to-day personnel issues,
planning, budgeting, implementing and monitoring Human Resource

function.
Facilitating decision making in areas like promotion, transfer, nomination,
settling employees provident funds, retirement, gratuity, LTC, and earned

leave compensation
Cutting costs.
Improving accuracy

Advantages of HR Information System


Reduction in the amount and cost of stored human resource data.
Availability of timely and accurate information about human assets.
Developing of performance standards for the human resource division.
More meaningful career planning and counselling.

Effectiveness of HRIS

25

The key to the effective planning of manpower and improvement of


people productivity is an effective HRIS. However, in order to be effective an
information system must take into account the following:
Adequacy of information: Too much or too little information, both lead
to

defective

decision-making.

Therefore,

there

must

be

some

understanding regarding what information and in how much detail and


covering what periods should be maintained.
Specificity: Even where it is not possible to quantify the information, the
information should be made as specific as possible.
Relevance: Information is to be managed in the light of the requirements
of the decision makers. Therefore, HRIS focus on the needs of the
decision-makers and stakeholders rather than on what is interesting or
easily available or palatable to the people. The system, therefore, must
also have the built in capability for deletion and updating of data.
Comprehensiveness: The information should be complete from the point
of view of the decision-maker giving details of who, what, how, when,
where and why.
Reliability: Since the information is going to be the basis of critical
decisions, it must satisfy the requirements of validity and reliability.
Moreover, to ensure effectiveness, not only should the information
provided be relevant and reliable but the delivery system should also be
the most satisfying and cost effective. A wealth of information but not
accessible when needed or available at an inhibiting personal cost in terms
of energy and time, is of hardly any use.

It Supported HRIS

26

In todays enterprises, HRIS are typically Information Technology (IT)


supported systems. This is not to say that without IT HRIS cannot be introduced.
But information technology allows much greater effectiveness of HRIS than a
manual system. Some of the deficiencies of the Manual Systems which an IT
based HRIS overcomes to a considerable extent
Convenience: In IT enabled systems, data entry, update and retrieval are
all significantly faster. Redundant data may be easily replaced.
Integration: A computerized system can greatly reduce fragmentation and
duplication of data. All data can be stored in a single system to enable
retrieval of complete picture of each employee or of each defined
parameter in a desired number of permutation and combinations.
Moreover, depending on the requirement, reports can be generated in
different ways that provide an accurate picture. Verification of data and
error rectification are also relatively easy in computerized systems.

Multi-User Benefit
Different people can access the data simultaneously, which facilitates
quick dissemination across geographical and structural boundaries and facilitates
faster decision-making. Moreover, on-line data entry is possible that leads to
automatic up-dating of data resulting into better informed decisions. However, to
obtain these advantages, it is important that the knowledge and expertise is
available to the organization, internally or from outside, to develop and tailormake the system to suit the organizations unique needs.

27

HRM in a Changing Environment


Environmental challenges refer to forces external to the firm that are
largely beyond managements control but influence organizational performance.
They include: rapid change, the internet revolution, workforce diversity,
globalization, legislation, evolving work and family roles, and skill shortages and
the rise of the service sector.
Six important environmental challenges today are:
a) Rapid change,
b) Work force diversity,
c) Globalization,
d) Legislation,
e) Technology
f) Evolving work and family roles,
g) Skill shortages and the rise of the service sector
Rapid Change
Many organizations face a volatile environment in which change is nearly
constant. If they are to survive and prosper, they need to adapt to change quickly
and effectively. Human resources are almost always at the heart of an effective
response system. Here are a few examples of how HR policies can help or hinder
a firm grappling with external change.
Work Force Diversity
All these trends present both a significant challenge and a real opportunity
for managers. Firms that formulate and implement HR strategies that capitalize on
employee diversity are more likely to survive and prosper.
Globalization
One of the most dramatic challenges facing as they enter the twenty-first
century is how to compete against foreign firms, both domestically and abroad.
Many companies are already being compelled to think globally, something that
doesn't come easily to firms long accustomed to doing business in a large and
expanding domestic market with minimal foreign competition. Weak response to
international competition may be resulting in upwards layoffs in every year.

28

Human resources can play a critical role in a business's ability to compete headto-head with foreign producers. The implications of a global economy on human
resource management are many.
Legislation
Much of the growth in the HR function over the past three decades may be
attributed to its crucial role in keeping the company out of trouble with the law.
Most firms are deeply concerned with potential liability resulting from personnel
decisions that may violate laws enacted by the state legislatures, and/or local
governments. These laws are constantly interpreted in thousands of cases brought
before government agencies, federal courts, state courts, and t Supreme Court.
How successfully a firm manages its human resources depends to a large
extent on its ability to deal effectively with government regulations. Operating
within the legal framework requires keeping track of the external legal
environment and developing internal systems (for example, supervisory training
and grievance procedures) to ensure compliance and minimize complaints. Many
firms are now developing formal policies on sexual harassment and establishing
internal administrative channels to deal with alleged incidents before employees
feel the need to file a lawsuit.
Technology
The world has never before seen such rapid technological changes as are
presently occurring in the computer and telecommunications industries. One
estimate is that technological change is occurring so rapidly that individuals may
have to change their entire skills three or four times in their career. The advances
being made, affect every area of a business including human resource
management.
Evolving Work and Family Roles
More and more companies are introducing "family-friendly" programs that
give them a competitive advantage in the labor market. These programs are HR
tactics that companies use to hire and retain the best-qualified employees, male or
female, and they are very likely to payoff. For instance, among the well known
organizations / firms, half of all recruits are women, but only 5% of partners are
women. Major talent is being wasted as many women drop out after lengthy
training because they have decided that the demanding 10- to 12-year partner
track requires a total sacrifice of family life.

29

These firms have started to change their policies and are already seeing
gains as a result. Different companies have recently begun offering child-care and
eldercare referral services as well to facilitate women workers as well as are
introducing alternative scheduling to allow employees some flexibility in their
work hours.
Skill Shortages and the Rise of the Service Sector
Expansion of service-sector employment is linked to a number of factors,
including changes in consumer tastes and preferences, legal and regulatory
changes, advances in science and technology that have eliminated many
manufacturing jobs, and changes in the way businesses are organized and
managed.
Service, technical, and managerial positions that require college degrees
will make up half of all manufacturing and service jobs by 2000. Unfortunately,
most available workers will be too unskilled to fill those jobs. Even now, many
companies complain that the supply of skilled labor is dwindling and that they
must provide their employees with basic training to make up for the shortcomings
of the public education system. To rectify these shortcomings, companies
currently spend large amount year on a wide variety of training programs.

30

A Case Study of Human Resource Information System at Amul

Human resource information system, that enables the organization in


collecting, storing, maintaining, retrieving and validating data needed about its
human resource.
HR data are wide in their variety, and include job history (transfers,
promotions, etc.), current and historical pay details, inventories of skills and
competencies, education and training records, performance assessment details,
absence, lateness, accident, medical and disciplinary records, warning and
suspensions, holiday entitlements, pensions data and termination records. An
HRIS normally provides an electronic database for the storage and retrieval of this
data which is, at least potentially, available to anyone who may want to access it.
The important issue however, is- how this IT system is actually used in
carrying out the HR tasks. ERP is an information system to drive the business. It
enables the organization to take systematic decision in the area of planning,
execution and control based on relevant and current information.
AMUL uses the system named ERP ORACLE Enterprise resource
planning. The areas of application of HRIS as follow.
1.
2.
3.
4.
5.

Training management
Turnover analysis
Succession planning
Attendance reporting
Accident reporting.

AMUL uses the system centrally in the organisation and over all the plants
of the Amul which is located in various areas such as

Mogar - chocolate plant


Khatraj plant cheese plant

31

Kanjari plant cattle feed plant.


The system operates in AMUL for different manner, and with the help of

this system different records are maintained with the help of ERP ORACLE. Types
of record maintained through HRIS.

Personnel administration - It will encompass information about each


employee, such as name address, personal details etc.

Salary administration - Salary review procedure are important function of


HRM, a good HRIS system must be able to perform what if analysis and
present the reports of changes.

Leave and absence recording essentially be able to provide


comprehensive method of controlling leave/absences

Skill inventory - It is also used to store record of acquired skills and


monitor the skill database both employee and organizational level.

Performance appraisal the system should record individual employee


performance, appraisal data, such as due date of appraisal, scores etc.

Human resource planning HRIS should record details of the


organizational requirements in terms of positions

Recruitment Record details of recruitment activities such as cost and


method of recruitment and time to fill the position etc.

Career planning - System must be able to provide with succession plans


reports to identify which employee have been earmarked for which
position.

Collective bargaining A computer terminal can be positioned in the


conference room linked to database. This will expedite negotiations by
readily providing up to date data based on facts and figures and not
feelings and fictions.

Database In database the system records the information of the previous


applicant , who is been not selected for the job this information is useful

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to the organization for next recruitment procedure for inviting for job in
this way the cost is saved by the organization because there is no need of
giving advertisement for next recruitment.

Service records In service records all the details regarding promotion of


an employee , education detail of employees , personal details, in which it
records the employee No , employee working in which location etc .

Employee summary In employee summary the information regarding


employee is available according to grade wise, designation wise, skilled
wise, and the total information of manpower is available.

Training The training information of an each employee is being


available through this system because it records that when the employees
is being given training and when will be the next training is to be given to
the employees .

Time keeping: time keeping in Amul is decentralized, plant wise but with
the help of ERP system the record of absence and present record is can be
available at Amuls head office Anand.

Recruitment: this system is not used in any steps of recruitment process of


the Amul.

In AMUL, the HRIS is not used for the recruitment process as it is done
manually in the organization the recruitment of the is carried in the following way
Vacancy in department

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Receiving of application

Short listing of applicant

There is no role of HRIS (ERP oracle) in the recruitment process, after the
short listing of the application the application which are selected is called for an
personal interview with the general manager of the AMUL. After the candidate is
selected for the particular job, the role of HRIS starts by keeping different types of
records of an employee such as
a) Personal details
b) Previous organization details
c) Training details
d) Service records
e) Joining details
f) Retirement details

HRIS is also useful in the turnover analysis of the Amul; it helps the
organization to know the number of time employees left the organization.

HRIS, is useful in keeping the Accident details of the employees, on the basis
of this reports employees are injured due accident are been given medical
facility and financial help.

The time keeping process of Amul is decentralized , in the various plants of


Amul like Mogar plant, Khatraj plant, Anand plant and Kanjari plant.
If any information regarding any employee absence and present of other

plant is needed by the central head office at Anand, that it is available with the
help of ERP ORACLE,

Users Perception

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After interviewing the fifteen respondents from the organization I have


come to know that the organization is using the software named ERP ORACLE
in HRIS and by observing and interviewing the user of the system the following
data is gathered.

The users of the system is fully satisfied with the present system ERP
ORACLE

The AMUL is using this system since last thirteen years and they are
trying to bring change by implementing new system named SAP which is
under the progress.

With help of HRIS the organization gets the following benefits such as
1. Time saving
2. Cost saving
3. Effective work

HRIS helps to supports the following HR task of the Amul


1. HR development and workplace training
2. Communication
3. Career management (for employees)
4. Decision making

The HRIS system of Amul is fully secured, so there no threat of linking of


any kind of data.

Futuristic Vision
On the basis of the various issues and challenges the following
suggestions will be of much help to the philosophy of HRM with regard to its
futuristic vision:

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There should be a properly defined recruitment policy in the organization that


should give its focus on professional aspect and merit based selection.
In every decision-making process there should be given proper weightage to
the aspect that employees are involved wherever possible. It will ultimately
lead to sense of team spirit, team-work and inter-team collaboration.
Opportunity and comprehensive framework should be provided for full
expression of employees' talents and manifest potentialities.
Networking skills of the organizations should be developed internally and
externally as well as horizontally and vertically.
For performance appraisal of the employees emphasis should be given to 360
degree feedback which is based on the review by superiors, peers,
subordinates as well as self-review.
360 degree feedback will further lead to increased focus on customer services,
creating of highly involved workforce, decreased hierarchies, avoiding
discrimination and biases and identifying performance threshold.
More emphasis should be given to Total Quality Management. TQM will
cover all employees at all levels; it will conform to customer's needs and
expectations; it will ensure effective utilization of resources and will lead
towards continuous improvement in all spheres and activities of the
organization.
There should be focus on job rotation so that vision and knowledge of the
employees are broadened as well as potentialities of the employees are
increased for future job prospects.
For proper utilization of manpower in the organization the concept of six
sigma of improving productivity should be intermingled in the HRM strategy.
The capacities of the employees should be accessed through potential
appraisal for performing new roles and responsibilities. It should not be
confined to organizational aspects only but the environmental changes of
political, economic and social considerations should also be taken into
account.
The career of the employees should be planned in such a way that
individualizing process and socializing process come together for fusion
process and career planning should constitute the part of human resource
planning.

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Major Influencing Factors in 21st Century


In the 21st century HRM will be influenced by following factors, which
will work as various issues affecting its strategy:

Size of the workforce.


Rising employees' expectations
Drastic changes in the technology as well as Life-style changes.
Composition of workforce. New skills required.
Environmental challenges.
Lean and mean organizations.
Impact of new economic policy. Political ideology of the Government.
Downsizing and rightsizing of the organizations.
Culture prevailing in the organization etc.

Conclusion
To conclude Human Resource Management should be linked with
strategic goals and objectives in order to improve business performance and
develop organizational cultures that foster innovation and flexibility. All the above
futuristic visions coupled with strategic goals and objectives should be based on 3
H's of Heart, Head and Hand i.e., we should feel by Heart, think by Head and
implement by Hand.
The times when management could arbitrarily dictate terms to the
employees and tread upon their rights is something that is not relevant anymore.

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With the ballooning of the white collar workforce, it becomes necessary for
organizations to pay more attention to the needs of the employees more than ever.
In recent years, with the high levels of attrition in the service sector, it has
become imperative for firms to have a structured separation plan for orderly exits
of employees. Of course, the concept of pink slips or involuntary exits are
another matter altogether and involve some bitterness that results because of the
employee losing his or her job. In conclusion, it is our view that employee
separations must be handled in a professional and mature manner and though
attrition is a fact that concerns everyone in the industry, once an employee decides
to leave, the separation must be as smooth as possible.

BIBILOGRAPHY

www.amul.co.in

www.hrm.com

human resource management ashwathappa

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