( HR PRACTICES IN SERVICE)

A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce

By
( NAYONIKA MANICK DAS)

Under the Guidance of

(SACHIN MANDLE)

SASMIRA INSTITUTE OF COMMERCE AND SCIENCE,

SASMIRA MARG, WORLI MUMBAI-400 030

March 2019
index
 Certificate
This is to certify that (MS)(NAYONIKA MANICK DAS) has been worked and
duly completed her Project Work for the degree of Bachelor of Management
Studies under the Faculty of Commerce in the subject of (HUMAN
RESOURCE) and her project is entitled, “(HR PRACTICES IN SERVICE
INDUSTRY)” under my supervision .

I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any Degree or
Diploma of any University.
Its is her own work and facts reported by her personal finding and
investigations.

(SACHIN MANDLE)

Date of submission:
 Declaration by learner
I the undersigned (NAYONIKA MANICK DAS) here by, declare that the work embodied in
this project work titled “ (HUMAN RESOURCE PRACTICES IN SERVICE)’’, forms my
own contributions to the research work carried out under the guidance of (SACHIN
MANDLE) is a result of my own research work and has not been previously submitted to
any other University for any other Degree/Diploma to this or any other University.
Whenever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
 Acknowledgment
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal,(DR. RITU BHATTACHARYA), for providing the
necessary facilities required for completion of this project .
I take this opportunity to thank our Coordinator,(VAISHALI KOTHIYA), for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide, (SACHIN
MANDLE), whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and peers throughout my project.
 Index
SR.NO TOPICS PG.NO

SUMMARY 9

INTRODUCTION

HISTORY

HRM

MEANING

Characteristics

function
 SUMMARY
Human resource plays a very important role in the performance of an organization.
An organisation is less likely to be successful if it does not have the support of its staff.
Having a skilled and satisfied workforce is a good advantage for organisations as it ensures
that employees can give their best performance which in turn is reflected on the performance
of the organisation.
In todays business world, the need for effective HR management cannot be ignored because
of increasing complexity of the task of managers. In most organisation , getting competent
and relevant people, retaining them and helping them to continuously grow and contribute to
the organisation are viewed as most critical.
The project is aimed to cover maximum knowledge of HR practices followed in the
organisations. Brief study has been done to have understanding of the subject.
 Chapter 1
INTRODUCTION
1.1 HISTORY:
Human resource are the people who make up the workforce of an organization. “Human
capital is sometimes used synonymously with human resource. Other terms used include
manpower ,labour or personnel.
Two men had created the idea of HR in the 18th century. They are Robert Owen and
Charles Babbage .Robert Owen is a Scottish social reformer and Charles Babbage was a
mechanical engineer who brought the scientific approach to management. Despite the
fact that HR was not known during the industrial revolution, these two men has
contributed to the creation of HR as a discipline a century later. They both understood
that people were responsible for the success of an organisation.
A century later, HR turned into specific field. Frederick Taylor, a mechanical engineer ,
explored scientific management and attempted to increase the economic efficiency of
workers. Taylor identified labour as the main contribution to the manufacturing process
and improved its productivity. He believed all control should be exchanged from workers
to management , and increased the division between planning work and executing work.
Thus, Taylor was the first management consultant, and is known as the father of HR.
In the late 19th early 20centuries corporation and public administrations changed the
business policy and strategy. The relationship between employer and employee was
deeply transformed. At times, HR became formalised as a discipline. The work of several
experienced people completed a stock human knowledge that made HR into an academic
and scientific field.
Throughout the following decades, HR has become increasingly professional and
progressive. It is structured around five core functions- staffing, human resource
development, compensation and benefits, safety and health, employer-employee
relations, and various other tasks.
In the 21st century the responsibility of human resource has grown and changed along
with the economy and the demands of technology.
At the macro-level HR is in charge of overseeing organizational leadership and culture.
HR also ensures compliance with employment and labour laws, which differ by
geography and often oversees health, safety, and security. Based on the geographic
location there are various legislations in place. There are several federal laws that are
crucial for HR manager’s to be familiar with in order to protect not only the company,
but the employees. Important federal laws and regulations HR should know are The Fair
Labour Standards Act includes establishing minimum wage and protecting the right for
certain workers to earn overtime. Human Resource Management has four basic
functions; staffing, training and development, motivation and maintenance. Staffing is
the recruitment and selection of potential employees done through interviewing,
applications, networking etc. there are two main factors to staffing which are attracting
talented recruitments, and hiring resources. HR Managers must create detail recruitment
strategies and have a plan of action to put forward when looking for recruitments. Next
putting the strategies in to place is hiring resources, which can be done by extending out
to find the best possible recruitments for the team. Recruiting is very competitive since
all companies want nothing but the best candidates, but by using tactics such as mass
media can grab their attention. Training and development is the next step in a continuous
process of training and developing competent and adapted employees. Here, motivation
is seen as key to keeping employees highly productive. This function can include
employee benefits, performance appraisals and rewards are all encouragements to bring
forward the best employees. The last function of maintenance involves keeping the
employee’s commitment and loyalty to the organization. Some businesses globalize and
form more diverse teams. HR departments have the role of making sure that these teams
can function and the people can communication across cultures and across borders. The
discipline may also engage in mobility management, especially for expatriates; and it is
frequently involved in the merger and acquisition process. HR is generally viewed as a
support function to the business, helping to minimize costs and reduce risk.
A human resources management system (HRMS) or human resources information
system (HEIS) is a form of human resources (HR) software that combines a number of
systems and processes to ensure the easy management resources, business processes and
data. Human resources software is used by business to combine number of necessary HR
function, such storing employee data, Managing payrolls, recruitments processes,
benefits administration, and keeping track of attendance records. It ensures everyday
human resources processed are manageable and easy to access.it merges human
resources as a discipline and, in particular, its basic HR activities and processes with the
information technology field, whereas the programming of data processing systems
evolved into standardized routines and packages of enterprise resource planning (ERP)
software. On the whole, these ERP systems have their origin from software that
integrates information from different application into one universal database. The linkage
of its financial and human resource modules through one database is the most important
distinction to the individually and proprietarily developed predecessors, which makes
software application both rigid and flexible.
Human resource information systems provide a means of acquiring, storing, analyzing
and distributing information to various stakeholders. HRIS enable improvement in
traditional processes and enhance strategic decision-making. The wave of technological
advancement has revolutionized each and every space of life today, and HR in its entirely
was no left untouched. Early systems were narrow in scope, typically focused on a single
task, such as improving the payroll process or tracking employees’ work hours. Today’s
systems cover the full spectrum of tasks associated with human resources department,
including tracking and improving process efficiency, managing organizational hierarch,
and simplifying financial transactions of all types. In short, as the role of human resource
departments expanded in complexity, HR technology systems evolved to fit these needs.
1.2 HUMAN RESOURCE MANAGEMENT
1.31.2.1 MEANING:
Human Resource Management is a strategic way of dealing with or
controlling people in an organization. It aims to enhance employees performance. HRM
is mainly concerned with the effective management of individuals within the
organizations. Every organisation has an HR department which is responsible for
overseeing various aspects involving employees such as recruitment , selection, training,
development, performance appraisal, employee benefits, and rewarding. The overall
purpose of HRM is to ensure that the organization can achieve success through people
working in it. HR professionals deal with the human capital of an organization and focus
on implementing various HR policies and processes. They specialize in recruiting,
selecting, training, employee-relations or benefits. They also help to find and hire the
best talent.

1.2.2 CHARACTERISTICS OF HUMAN RESOURCE

MANAGEMENT:

1. It is the art of managing people.

2. It is concerned with employees both as individuals and as a group.
3. It covers all levels and categories of employees.
4. It is concerned with the development of knowledge, capabilities , and skills.
5. It is a continuous process.
6. It is the responsibility of all managers in an organisation.
7. It is concerned with achieving employee goals.
8. It is challenging job due to the dynamic nature of people.
1.2.3 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT:
HRM is responsible for overseeing organizational leadership and culture. It also ensures
compliance with employment and labour laws. These laws differ by area , and often includes
health, safety and security. There are various laws that are important for HR manager to be
familiar with in order to protect the company, as well as the employees.
HRM has six basic functions:
1. Recruitment: it is the process of searching for prospective employees and
encouraging them apply for jobs in the organization.
2. Selection: it is the process of choosing the right person for the right job from a pool of
candidates who have applied for a particular job.
3. Training and development: it refers to the continuous process of training and
development competent employees in order to improve their job performance.
4. Maintenance: it involves keeping the employees commitment and loyalty to the
organization. Performance appraisal: it is a method of systematically evaluating job
performance of an employee
5. Employee benefits: it includes various types of compensation provided to employee
in addition to their normal wage or salaries.
1.2.4 OBJECTIVE OF HUMAN RESOURCE MANAGEMENT:
1. To achieve the organizational goals by making use of skilled workforce.
2. To establish and maintain good relations among all the members of the organization.
3. To ensure co-ordination among individuals and groups with organization.
4. To provide opportunities for individuals and groups.
5. To ensure effective utilization of human resources.
6. To identify and satisfy needs of employees.

1.2.5 SCOPE OF HUMAN RESOURCE MANAGEMENT:

The scope of HRM is vast. All major activities of an employee comes under the
preview of HRM. The scope of HRM extends to:
1. All the decisions, strategies, practices, activities, functions, methods, operations,
factors, and principles which are concerned with the management of employees in
the organization.
2. All the aspects related to people in their employment and relationships.
 1.2.6 POSITIONS IN HUMAN RESOURCE MANAGEMENT:
In the organisations HR, positions fall into one of two categories: generalist and specialist.
Generalists deal with all aspects of human resources. Hence, they require more knowledge
and experience. On the hand, Specialists work in a specific HR function and require
comparatively less knowledge and experience. The Chief HR Officer is the highest HE
executive in most organisations, who reports directly to the CHIEF Executive Officer ands
works with the Board of Directors.

1.2.7 AREAS OF HUMAN RESOURCE MANAGEMENT:

1. Human Resource Planning: The objective of HR Planning is to ensure that the
organization has right people at the right time and at the right place. It identifies current
and future HR needs in order to achieve organizational goals.
2. Selection and Staffing: it refers to the recruitment and selection of candidates. It
involves selecting the best people whose skills and qualification match the job
requirements.
3. Training and Development: it involves finding out training needs of employees
to acquire the knowledge and skill which is not required not only to improve job
performance but also to satisfy the needs of the organization.
4. Organizational Development: it is the process of improving the organisation. It
includes various efforts to benefit the organisation, its employees and shareholders.
 5. Union- Labour Relations: Good Industrial and Labour relations are very
important for enhancing peace in an organization.

1.2.7 TECHNOLOGY IN HUMAN RESOURCE MANAGEMENT:

1. E-recruiting: Recruitment is influenced by technology. With the use of e-
recruiting, HR Mangers can post jobs and find applicants for those jobs in various
location all in one place. This helps the HR managers to keep track of all jobs applicants
in a faster and easier way.
2. Human Resource Information System: The use of Human Resources Information
Systems (HRIS) helps organisations to store and retrieve files containing information in
an electronic format which becomes easier for people within the organization to access.
This frees up space within the organisation .HRIS allows to access information on time.
3. Training: By using technology HR professionals can train employees in a more
efficient and effective way. This helps employees to access training programs from
anywhere. This eliminates the need for trainers to meet employees face to face.
1.2.8 ROLE OF HR MANAGER:
HR Manager plays a very important role in the organization. He plays various roles at
different levels in the organization.
1. The Counsellor: Employees who are not satisfied with the current job and those who
are facing various problems approach the HR manager. The HR manager counsels the
employees and offers suggestions to solve their problems.
2. The Mediator: HR manager settles the disputes between members of the
organisation.
3. The Spokesman: HR manager acts as a frequent spokesman for the company.
4. The Problem solver: HR manager act as a problem solver and deals with the issues
that involve HRM.
5. The Change Agent: HR manager acts as a change agent and introduces changes in
various programmes.
 1.2.9 CHALLENGES OF HUMAN RESOURCE MANAGEMENT:
1. Globalization: Globalization of business has a great impact on HRM with problems of
unfamiliar laws, languages, competitions, attitudes, management styles, work ethics and
more. HR managers have the challenge to deal with more functions.
2. Corporate Re-organization: Reorganization includes mergers and acquisitions, joint
ventures , take over, internal restructuring of organizations. In these situations, it is
difficult to imagine circumstances that can create a greater challenge for HRM.
3. Changing Demographics of Workforce: Changes in workforce are largely reflected.
These workforce have their own implications for HR managers and from HRM point of
view it is very challenging to handle.
4. Weaker Society interests: HRM has to protect the interest of weaker sections of
society. The increase of women workers, minorities and other backward communities has
resulted in the need for organizations to re-examine their policies, practices and values.
5. Contribution to the success of organizations: Another challenge to an HR manager is
to all employees contribute to the success of the organization in an ethical and responsible
way because society’s wellbeing depends on its organizations.
1.3 SERVICE INDUSTRY
1.3.1 SERVICES: Service is an act or performance which is offered by one part to another. Although
the process can include a physical product, the performance is intangible and does not result in
ownership of anything. An industry in the part of the economy that creates services rather than tangible
objects. Economists divide all economic activity into two broad categories, goods and services. Goods-
producing industries are agriculture, mining , manufacturing, and construction each of them creates
some kind of tangible object. Service industries include everything else banking, communications,
wholesale and retail trade all professional services such as engineering, computer software development
and medicine, non-profit economic activity all consumer services and all government services, including
defense and administration of justice. A service economy is characteristic of developed countries In less
developed countries most people are employed in primary activities such agriculture mining The
simplest explanation for the growth of service industries that goods production has become increasingly
mechanized. Because machines allow a smaller workforce to produce more tangible goods, the service
functions of distribution, management, finance and sales become relatively more important. Growth in
the service sector also results from a large increase in government employment.

1.3.2 CHARACTERISTICS OF SERVICES:

1. Intangibility is the primary characteristic which distinguish services from physical
goods. Services cannot be touched, taste, smell, see or heard.
2. Services have zero inventory. Once sold they stand sold cannot be returned.
3. Services cannot be separated from the service providers.
4.Services are highly variable because the quality of service depends on where, when and
by whom they are provided.
5. Services are produced and consumed at the same time.
1.3.3 SERVICE SECTOR:
The tertiary sector or service is one of the economic sectors. The others are the
secondary sector( manufacturing ) and the primary sector (raw materials).
The service sector includes the production and provision of services .it includes
attention, advice, access, experience, and affective labour.
The service industry involve providing services to customers as well as other
businesses. Services may include the transport, distribution, and sale of goods from
producer to consumer. The goods may be transformed in the process of delivering the
service. However, the focus is on serving people rather than transforming physical goods.
The service sector produces intangible goods, more precisely services instead of goods,
and according to the U.S. Census Bureau, it comprises various service industries
including warehousing and truck transportation services, information sector services,
commodities, securities and other investment services, professional, technical and
scientific services, waste management services, health care and social assistance services,
and arts, entertainment, and recreation services. Countries with economies centered
around the service sector are considered more advanced than industrial or agriculture
economies.

THE SERVICE SECTOR IN THE THREE-PART ECONOMY:

The service or tertiary sector is the third piece of a three-part economy. The first
economic sector the primary sector, covers the farming mining and agricultural business
activities in the economy. The secondary sector covers manufacturing and business
activities in the economy. The secondary sector covers manufacturing and business
activities that facilitate the production of tangible goods. The service sector, though
classified as the third economic sector, is responsible for the largest portion of the
economy’s business activity. Businesses in this sector are rapidly placing more focus on
what is becoming known as the “knowledge economy,” or the ability to surpass
competitors by understanding what target customers want and need and operate in a way
that meets those wants and needs quickly with minimal cost.
TECHNOLOGY IN THE SERVICE INDUSTRTY:
Technology, specifically information technology systems, is a shaping the way businesses
in the service sector operate. In nearly all industries within sector, business institute
technology t bolster production, increase speed and efficiency and cut down on the
number of employees required for operation .This cuts down on costs and improve
incoming revenue streams.

IMPORTANCE OF SERVICE SECTOR:

Many productive systems such as hospitals, beauty salons, consulting companies, banks
and airlines do not produce a tangible product that can be stored for later consumption.
Instead, the output of such systems is a service for example, healthcare, good looks,
advice loans, and transportation that is consumed in the process of its production. From
day-to- day experience, we know that the cost and quality of services provided even
within the same industry can vary a great deal. We have preferences and are willing to
pay for different components of service, such as speed, quality, degree of variety, and so
on. Better management of the system that provide the service, consistent with customer
preferences and requirements, will lead to greater profitability for the firm. We must
therefore understand the nature of the various types of service systems and the associated
management tasks that are required to improve a services firm’s competitiveness.
In 1980, the service sector employed more than two thirds of the working population and
accounted for more than 60 percent of the gross national product. For the first time in
history, investment per officer worker now exceeds investment per factory worker. With
the continuing trend towards a service economy, a greater proportion of future operations
managers will be employed by this sector.
In this addition to the continuing growth of the service sector, the role of services in the
manufacturing sector has been increasing. With increasing automation and the use of
computers in the design of a product and its manufacturing process, technical and
professional staffs will have greater role in the actual production of the product than will
unskilled workers. Thus, in the factory of the future the productive process may be guided
by design engineers, computer operators, and production planners.
 1.3.4 EXAMPLES OF SERVICE SECTOR INDUSTRIES:
1. Telecommunication: is the transmission of signs, signals, message, words, images
and sounds or information by wire, radio , optical or other electromagnetic systems.
Telecommunication occurs when the exchange of information includes the use of technology.
The telecommunication industry consists of all telecommunication companies and internet
service providers and plays an important role in the evolution of mobile communications and
information. Telephone calls continue to be the industry’s biggest revenue generator.
Telecom today is less about voice and increasingly about text and images. High- speed
internet access for computer- based data applications such as broadband information services
and interactive entertainment , is spreading widely. Digital Subscribe Line is the main
broadband telecom technology. The fastest growth comes from services delivered over
mobile networks.
2. HOSPITALITY: The hospitality industry includes lodging food and drink service, event
planning, theme parks, transportation, cruise line, traveling and additional fields within the
tourism industry. The hospitality industry is an industry that depends on the availability of
leisure time and disposable income. A hospitality unit such as a hotel, amusement park
consists of multiple groups such as facility maintenance and direct operations.

3. MASS MEDIA: The mass media is a collection of media technology that reach
large audience via mass communication. The technologies through which this
communication occurs include a variety of outlets. Broadcast media transmit
information electronically films, radio, recorded, music. Digital media comprises
both Internet and mobile mass communication. Internet media includes services
such as email, social media sites, websites, Internet- based radio and television.
Outdoor media transmit information via media such as AR advertising, billboards,
buses, commercial buildings, shop, sports stadiums, trains, Print media transmit
information physical objects, such as books, comics, magazines, newspapers.

4. FINANCIAL SERVICES: Financial services are the services provided by the

financial industry, which encompasses a broad range of businesses that manage
money, including credit unions, banks, credit- card companies, stock brokerages,
investment funds, individual managers and some government- sponsored
enterprises.

5. PROFESSIONAL SERVICES: Professional services are occupations which

require special training in the arts or sciences. Some professional services require
holding professional licenses such as architects, accountants, engineers, doctors and
lawyers. Other professional services involve providing specialist business support
 to businesses of all sizes and in all sectors this can include tax advice, supporting a
company with accounting, IT services or providing management advice.

6. EDUCATION: The education sector includes various institutions ministries of

education, local educational authorities, teacher training institutions, schools
colleges, universities, etc. whose primary purpose is to provide education to
children and young people in educational settings. It involves a wide range of
people. These institutions can vary according to different contexts.

7. HEALTHCARE: Healthcare is the maintence and improvement of health via, the

prevention, diagnosis, and treatment of disease, illness, injury, and other physical
and mental impairments in human being. Health care is delivered by health
profession in health fields. Physicians and physician associates are a part of these
health professionals. Dentistry, nursing, medicine, optometry, audiology,
pharmacy, psychology, physical therapy and other health professions are all part of
health care. It includes work done in providing primary care, secondary care, and
tertiary care, as well as in public health. The healthcare industry provides goods
and services to treat patients with curative, preventive, and rehabilitative care. It
includes the production and commercialization of goods and services lending
themselves to maintaining and re-establish health. The modern healthcare industry
is divided into many sectors.

8. PUBLIC HEALTH: is defined as the science and art of preventing disease,

prolonging life and promoting human health through organized efforts and
informed choices of society, organizations, public and private, communities and
individuals. Analysing the health of a population and the threats it faces is the basis
for public health. Public health is an interdisciplinary field and aims to improve the
quality of life through prevention and treatment of disease, including mental health.
This is done through the surveillance of cases and health indicators, and through the
promotion of healthy behaviours.

9. INFORMATION TECHNOLOGY: Information technology(IT) is the use of

computers to store, retrieve, transmit, and manipulate data, or information, often in
the context of a business or other enterprise. IT is considered to be a subset of
information and communications technology(ICT). An information technology
system is an information system or a computer system, including all hardware,
software and peripheral equipment, operated by a limited group of users. The IT
industry involves the provision of services related to information technology.

10. Consulting: Consulting is a business that involves providing professional advice to

an individual or an organisation in areas such as security, management, education,
accountancy, law, human resources, marketing, financing, engineering, science or
any of other specialised fields.

11. Retail: The retail business involves selling consumer goods or services to
customers through multiple channels of distribution to earn a profit, Retailers
 satisfy identifies demands of customers. Shopping generally refers to the act of
buying products offered by retailers. Most retailers business make a variety of
decisions including the type of store, the market to be served, the product
assortment, customer service, supporting services and the store’s overall market
positioning. In the digital age, retailers are seeking to reach broader markets by
selling through multiple channels, including online retailing. Retails shops occur in
a diverse range of types and in many different contexts- from shopping centres in
residential streets to large, indoor shopping malls.

12. Franchising: Franchising is concept which can be adopted by an organisation for

business expansion. The one party grants another party the right to use the
trademark or trade-name as well as certain business systems and processes, to
produce and market a good or service, The franchisee usually pays a one-time
franchisee fess and a percentage of sales revenue.
 1.3.5 SIGNIFICANCE OF SERVICE SECTOR:
Services are used by the corporate as well as the household sector. There is a growing
market for services and increasing dominance worldwide. The growth of the service sector
have drawn attention to the issues and problems of the service industries. Service sector
creates and expands job opportunities. The new employment opportunities are offered by
service industry.

1.3.6 SERVICES SECTOR IN INDIA:

The service sector is one of the dominant sectors in India’s GDP. It has attracted vital
foreign investment flows, contributed to exports as well as provided large- scale employment.
The service sector in India covers various activities such as trade, hotel, transport, storage and
communication, financing, insurance, real estate, business services. The service sector as a
key driver of India’s economic growth, has contributed 55.65% of India’s Gross Value
Added at current price. It has employed 28.6 % of the total population. The Government of
India has recognised the importance of promoting growth in service sector and provides
several incentives in various sectors. The government has adopted few initiatives in the recent
past.
1.3.7 RESONS FOR GROWTH IN SERVICE SECTOR:
1. Consumer affluence: Due to rise in the income of consumers, they are attracted towards
new areas such as domestic services, travel and tourism, entertainment, banking, investment,
retail, insurance etc. and these are growing faster than ever before.
2. Working women: During recent times a large number of women have come up in a
variety of professions. Due to increasing involvement of women in service sector , services
like personal care , financial services, retailing etc. have emerged in recent times.
3. Leisure time: People get leisure time to travel and therefore, there is a need for travel
agencies, resorts, hotels and entertainment.
4. Greater life expectancy: The life expectancy of people has increased significantly all over
the world. This invites opportunities in services like hospitals, nursing home, entertainment,
leisure services, banking and so on.
5. Product innovations: In the changing time the consumers have become more conscious of
quality than cost. They want high quality goods. Having this in mind the manufactures have
focused on quality improvement, innovation ,etc. In this process, many services have
emerged on account of product innovation.
6. Product complexity: A large number of products are being purchased which can be
serviced by specialised people only e.g. water purifier, microwave, computers etc. giving rise
to need for services.

1.3.8 ISSUES OF SERVICE SECTOR:

Service providers face obstacles while selling services that goods- sellers rarely face.
Services are intangible, making it difficult for customers to understand what they will receive
and what value it will hold for them. Indeed, some services offer no guarantees of the value
for price paid. Since the quality of most services depends on the quality of the individuals
providing the services, people costs are usually a high fraction of service costs. Whereas a
manufacture may use technology, simplification, and other techniques to lower the cost of
goods sold, the service provider often faces an unrelenting pattern of increasing costs.
COMPANY PROFILE

TATA CONSULTACY SERVICES:

Tata Consultancy Service is an Indian multinational information technology
service, consulting company which operates in 46 countries. The company is
headquartered in Mumbai, Maharashtra. It is part of the Tata Group. By market
capitalization, TCS is one of the largest Indian companies. It is the world’s 2 nd largest IT
services provider. In April 2018, TCS became the first Indian IT company to reach $100
billion market capitalization. TCS was founded in 1968 by Tata Sons Limited. The
company provides a wide range of IT-related products and services. These include
application development, business process outsourcing, capacity planning, consulting,
enterprise software, hardware sizing, payment processing, software management and
technology education services. The company’s best known products are TCS BANCS and
TCS Master Craft.

HDFC BANK:
HDFC Bank( Housing Development Finance Corporation) is an Indian
banking and financial services company headquartered in Mumbai , Maharashtra. HDFC
Bank is India’s largest private sector bank. It is the largest bank in India by market
capitalization. HDFC Bank was incorporated in 1994. The company provides a number of
products and services including wholesale banking, retail banking , treasury, auto loans,
two wheeler loans, personal loans, loans against property , consumer durable loan,
lifestyle loan and credit cards.
 CHAPTER 2
RESEARCH METHODOLOGY

Research methodology is the systematic analysis of the methods used in a study.

It involves the analysis of methods and principles related to a research. A methodology is
not same as method because it does not provide solution, Instead it helps to understand
which methods or practices have been applied to a specific research or used to obtain a
specific result.

2.1 TYPES OF RESEARCH

Research can be classified into different categories depending on:
1. Objective of research ( exploratory, descriptive or casual)
2. Subject under investigation: past events, natural phenomena or society( historical,
scientific or social)
The topic of research is the theoretical and descriptive. So the research conducted is of
descriptive type. Descriptive research attempts to describe systematically a situation,
problem or phenomenon and provides information.

Qualitative and Quantitative research: Both Qualitative and Quantitative research has
been done on the topic. Qualitative research is concerned with data which cannot be
expressed with numbers. Quantitative research deals with data which can be expressed
numerically. Qualitative data in the research report has been presented in form of
concepts, meaning, definitions, characteristics, whereas quantitative data has been
presented in form of statistics, percentage, etc
2.2 SOURCES OF DATA COLLECTION:
SECONDARY SOURCES: Secondary data is readily available data which can be used
for general purpose. Secondary data was gathered for the research because it helps to
arrive at a conclusion for the study. The data was acquired from a variety of online
database, and other such sources.
Advantages of Secondary data:
1. The data is cheaper to use.
2. The data is quicker to obtain.
3. Secondary data is available on all possible subjects.
Disadvantage of secondary data:
1. The data collection may not be a reliable.
2. With passing time, the data becomes very old.
3. Secondary data can affect the results of the research.
OBJECTIVE OF THE STUDY
1. To evaluate various HR practices followed in the service industry.
2. To know what are the uses of HR practices for any organization.
3. To gain familiarity of the HRM concept and achieve new insights into it.
4. To have in-depth knowledge about HR in service sector.
5. To find out conclusions by gathering facts.
6. To find the characteristics of particular individuals, situations or a group.

2.3 HYPOTHESIS TESTING:

Formulating a hypothesis is an important element in a research project in that it provides
a basis for the development of theory and the collection and analysis of data. A
hypothesis is a supposition- a tentative explanation of something. It is a provisional
statement that is taken to be true for the purpose of argument or a study and usually
relates to an existing wider body of knowledge or theory. A hypothesis has to be tested
and should be distinguished from a theory which, by definition, has been tested. A good
hypothesis contains two concepts and proposes a relationship between the two. A
working hypothesis is a general hypothesis that has been operationalized so that it can be
tested.
Hypothesis formulation and testing use the strengths of both deductive and inductive
argument; the former entirely conclusive but unimaginative, the latter tentative but
creative. Induction produces ideas, deduction tests them.
To test a hypothesis data have to be obtained that will demonstrate that the predicted
consequences are true or false. Simply leaping to the conclusion that a hypothesis is true
because a single cause of the consequence has been observed falls into the trap of what
logicians call the ‘ fallacy of affirming the consequent.’ There may be alternative and
more valid causes. The preferred method of testing is that of denying the consequent. This
is ‘falsification’ as advocated by Karl Popper(1959). His view was that however much
data may be assembled to support a hypothesis it is not possible to reach a conclusive
proof of the truth of that hypothesis. Popper therefore proposed that it was insufficient
simply to assemble confirmatory evidence. What must also be obtained is evidence that
refutes the hypothesis. Only one instance of refutation is needed to falsify a theory
whereas however many confirmations of the theory exist it will still not be proved
 conclusively. I had the good fortune to be taught by Popper at the LSE and he illustrated
his concept of falsification with swans. The hypothesis is that all swans are white and
someone who stayed in Great Britain and didn’t visit a zoo might think that this was the
case. But a visit to Australia would lead to the discovery that swans that are not white.
This would mean the original hypothesis would have to be modified to state that swans
can be either white or black.

2.4 LIMITATIONS OF THE STUDY

1. The project was constrained by time limit
2. The figures have been taken by approx..
3. Due to lack of experience in primary data collection, there is a chance that the data
collected is flawed.
4. There may be little prior research on the topic due to focus on the most contemporary
research problem.
5. Some of the respondents may have not given real data.
6. The sample size for the research was too small. So the results obtained may not be
accurate.
 CHAPTER 3

LITERATURE REVIEW
INTRODUCTION:
Various books and articles were published by professors to support the concept of HRM. Due
to its multiple origins and many influences, HRM covers many important aspects in the
organisations. Some definitions have been given by writers such as Soderlund and Bredin,
2005, who saw HRM as an ‘ executive personnel responsibility’ that is concerned with
management activities and called HRM as management philosophy that is mainly concerned
with employees.
Price (2007) definition is used in this literature because explained and covers many areas of
the study. According to price:
“ A philosophy of people management based on the belief that human resources are uniquely
important to sustained business success. An organization gains competitive advantage by
using its people effectively, drawing on their expertise and ingenuity to meet clearly defined
objectives. Human resource management is aimed at recruiting capable, flexible and
committed people, managing and rewarding their performance and developing key
competencies”.
According to Edwin Filippo , HRM is “planning, organizing, directing, controlling of
procurement, development, compensation, integration, maintenance and separation of human
resources to the end that individual, organization and social objectives are achieved.”
The concept of Human resource was introduced in 1969 by Prof. L. Nadler in American
Society for training and Development Conference. In India, Larson and Tubro Ltd. a private
company introduced this concept in 1975i in their organization to enable growth of
employees.
Martin , T. P (2003) in his article “Dynamic Human Resources” stated that , out of a variety
of resources which are involved in the process of organization growth, human resources are
the most important element of efficiency and productivity.
Kundu. Subhash C., Divya Malhan( 2009) in their article on “HRM Practices in Insurance
Companies: A Study of Indian and Multinational Companies” said that “ Competitive
advantage of a company can be generated from human resources and company performance
is influenced by a set of effective HRM practices.” This study indicated that both
multinational companies and local companies should improve their practices regrading HR.
The term “ service” is a complicated phenomenon. However, many researchers have tried to
come up with the right definition of service. One of the definitions that covers all of aspects
of the services is the one given by Lovelock , Vandermerwe, and Lewis(2001)
“Services are economic activities that create value and provide benefits for customers at
specific times and places, as a result of bringing about a desired change in-or on behalf of the
recipient of the service.”
Philip Kotler defines service as “an act of performance that one parry can offer to another that
is essentially intangible and does not result in the ownership of anything its productions may
or may not be tied to a physical product.
According to Zeitmal and Bitner, “services are deeds, processes and performances”. Here,
deesds are the actions of the service provider, processes are the steps in the provision of
services and performance is customer’s understanding of how the service has been deliverd.
Satisfaction plays a prominent role in the service industry. Mc Kenna (1991) suggested that
in order to achieve satisfied customers, organizations should see market surveys,
advertisements, and promotions and focus on providing the right products and services to the
customers that meet their expectations.
The service sector is expanding very rapidly. The extraordinary growth of the service sector
has focused attention on challenges of effective management of service organization and
operations vastly different from the challenges faced in manufacturing settings. Due to rapid
developments in information technology, globalization, changing customer
needs/preferences, and the changes in relative wealth between the developed and newly
developing economies, the effective management of service systems addressing productivity
and quality issues will become even more important in the coming years. The management
and marketing systems in the service sector continue to suffer from lack of adequate
systemization. The techniques for effective service operation management are not fully
developed as in manufacturing. This paper reviews the literature is suitably classified and
some research directions are identified.
1. Literature is suitably classified as Issues/Problems related to service sector
Manufacturing like approach to service sector In this section, first the literature
related to the issues/Problems facing the service industry is reviewed. Next the
literature suggesting the tools and techniques used in manufacturing industry that can
be applied in service industry in addressing above issues is reviewed. A lot of papers
have been reported in healthcare sector. Therefore, literature on how health sector can
be benefited from an approach is reviewed separately.
A. ISSUES RELATED TO SERVICES
Wright & Mechling, reported on the research to empirically determine which
operations management problems are the most important to small service organization
A survey was conducted to determine the relative importance of operations-related
service problems. The authors asked managers of service organizations to rank a set
of operations problem according to their relative importance using Q-methodology. In
this article Q method is explained, significant factors are analysed, and explanations
are offered for the ranking of the operation problem. Fifty-four service organization
responded to the survey, three response were not usable. The results indicated that
‘determining how utilize resources most effectively’ ‘monitoring and measuring
quality of services’ ‘predicting future events, conditions, customer demand, price/cost
levels’ etc are important operational issues for service organizations. However, the
results also indicated that facility location and layout, waiting line systems, and
distribution requirements planning were for the most unimportant to the respondent
service organization.
Customer demands and reduced operating budgets are forcing governmental agencies
at different levels and non-profit organization to seek ways to reduce operating costs
and improve the responsiveness, quality and service expected of their operations
Singh & Deshmukh and Yassine stressed quality issues in growing service sector. It
was recognized that service quality is multifaceted and that it is ultimately evaluated
in the minds of the customer. Service quality was defined as a measure of how well
the service delivered matches the customer expectations Lewis Parasuraman et al.
developed a service quality model where the service quality was shown to be a
discrepancy between the expected service and the perceived service. The various gaps
or the reasons due to which this discrepancy takes place were explained. Effective
measurement and analysis of service quality are an essential first step in its
improvements. Parasuraman et al. described the development of a 22- item instrument
called SERVQUAL) for assessing customer perceptions of service quality in service
and retailing organization. SERVQUAL is a concise multiply-item scale with good
reliability and validity that service organization can use to better understand the
service expectations and perceptions of consumers and, as a results improve service.
Behera et.al, discussed the development of neural network models for service quality
measurements. In this paper. It is demonstrated that neural network have the potential
to be a valuable approach to understanding customer evaluation of service quality and
providing a promising approach to data mining in the domain of service quality.
B. Manufacturing Like Approach to Service Sector
This section reviews the literature in which it has been stressed to use the tools and
techniques used in manufacturing that can help in aggressing issues in service sector.
Researches in SOM realized that the challenges in service organizations are not
necessary of the same nature as manufacturing organizations. Service cannot be
treated as merely goods with some odd characteristics. As a matter of facts, the
characteristics of most service firms differ widely form those of manufacturing. The
main features of a service, which distinguishes it from a product are: intangibility,
heterogeneity, and inseparability of production and consumption. However, some
concepts and tools developed in the manufacturing domain can be altered to fit and
benefit service organizations. Behera and chase, have adapted the concept of quality
function deployment (QFD) for service firms. Statistical process control, just in time ,
and quality circles all originated in manufacturing and then were adopted by SOM
researchers to fit service organizations. Various researches are of the view that service
industries can improve their operations by using techniques and tools similar to the
ones used in manufacturing environments. Reichheld Sasser conceptualized the
concept of zero defections to service. According to them, service companies must
understand what their own kind of scrap heap; customer who will not come back.
That scrap heap too has a cost. So the concept of zero defections-keeping every
customer the company can profitably serve, will increase the company’s profits.
Customers can tell you exactly what parts of the business you must improve. Zero
defections culture can be developed by training the workforce and using defections as
a primary performance measure. Everyone in the organization must understand that
Zero defections is the goal. Its is important to make all employees understand the
lifetime value of customer. Managers should use defections as a vehicle for
continuously improving the quality and value of the service. The winners will be
those who lead the way in managing towards zero defections.

Some conceptual article and case studies, have shown that JIT is eminently suited to
non-manufacturing situations as well as, such as in service and administrative work
situation. JIT concepts and tools, originally developed in the manufacturing domain,
can be identified analysed and altered to fit and benefits service organizations. In the
literature, JIT has found applications in healthcare, maintenance, administration,
warehousing, mail-order, restaurant, finance, accounting operations, JIT elements of
Inventory reduction, JIT purchasing, waste reduction, work cell concept, flexible
workforce, and quality were the most common elements that were used. Other
elements were lot size reduction, layout, standardization, Kanban, Kaizen, TPM,
reduced setup time, Flexibility, automation and autonomation etc
Chase and Garvin has given importance to service part of manufacturing. The factory
of the future is not a place where computers, robots, and flexible machines do thee
drudgework. The manufactures that thrive into the next generation will have to
compete by bundling service with products, anticipating and responding to a truly
comprehensive range of customer needs.
 CHAPTER 4
DATA ANAYSIS AND INTERPRETATION:
Data analysis is the process of analysing the existing data with a view of discovering
useful information and conclusions. Data analysis has various approaches and multiple
techniques. The techniques are used in different business and field of research. In today’s
world, data analysis plays a very important role in making decisions.
The detailed analysis of data obtained for the research through internet it’s a secondary
data. The data analysis and interpretation are of Self Help Groups its an informal group
formed on voluntary basis, perceived as people’s intuitions, providing the poor with the
space and support necessary to take effective steps towards greater control on their lives
in private and also in society. The informal groups provide the poor with the means for
“economic and social entitlement.” The group formations are based on a growing
institutional concept in terms of resources and management skills of the members to
increase their confidence to get involved in the public and private spheres-A,P.Fernandez.
‘Self-help is the best help.’ This slogan on self help groups depicts the importance of self
help in the strengthening and ringing together of the human race.
This chapter analyzed various aspects in relation to “A sociological study on the
empowerment of women with special reference to Mahasemam trust, Madurai. It is based
on the information collected from Mahasemam and its contribution towards self help
groups. The data classified was represented in the form of tabulation and interpretation
 TABLE 4.1
AGE WISE DISTRIBUTION
SR.NO Age Group Percentage
1 20-24 19.4
2 25-29 21.2
3 30- 34 21.0
4 35-39 21.4
5 Above 40 17.0
Total 100.0

According to table (4.1) majority ( 21.4%) were belonged to the age group of 35-39 years
in the study area. Its noted that 21.2% belonged to the age group of 25-29 years in the
study area . likewise 21.0% belonged to the age group of 30-34 years. 19.4% belonged to
the age group of 20-24 years and 17.0 % belonged to the age group of above 40
Whatever the age group the indicative factor to join here is contribution in family
expenses to raise their level of income understand the importance by means of income
generating programmes through which they found out the sources of income for the
survival.
 AGE WISE DISTRIBUTION
Series 3

120
100
100

80

60

40

19.4 21.2 21 21.4

17
20

0
20-25 25-29 30-34 35-39 above 40 total
 TABLE 4.2
MARITAL STATUS WISE DISTRIBUTUON
SR.NO Marital Status Percentage
1 Married 69.8
2 Divorced 4.8
3 Widow 20.4
4 Separated 5.0
Total 100

Majority (69.8%) were with their life partners. Women after marriage were seeking some
self employment opportunities to supplement their family income. Its also noticed that
20.4% were windows. Another 5.0% level with miserable condition, and were not legally
divorced to get benefits associated with it. Its also found that 4.8% of them were legally
divorced.

MARITAL STATUS WISE

Series 2

120

100

80

60

40

20

0
Married Divorced widow Separated total
 TABLE 4.3
EDUCATIONAL STATUS
SR.NO OCCUPATION Percentage
1 Agriculture 40.0
2 Coolie 17.2
3 Business 10.8
4 Housewife 32.0
Total 100.0

Majority( 40%) is for Agricultural as per table (4.3). 32.0 % of them are homemakers taking
care of household activities. 17.2 % of them are coolies in companies, factories and in the
houses. Another 10.8% women were engaged in the businesss such as tailoring, flower
selling, doll shop, solar products, sanitary napkin production .

OCCUPATION DISTRIBUTION
Series 3

120

100

80

60

40

20

0
Agriculture coolie Business housewife total
 TABLE 4.4
EDUCATIONAL STATUS
SR.NO EDUCATION PERCENTAGE
1 Illiterate 32.2
2 Literate 3.4
3 Primary 6.6
4 Middle 8.6
5 High School 4.0
6 Higher Secondary level education 45.2
total 100.0

Majority (45.2%) husbands obtained higher secondary level education as given in the table.
32.2% of them were illiterate. 8.6% were studied up to middle school level education. 6%.6%
of them obtained primary school level education. 4% of them obtained high school level
education. Its also identified that 3.4% were literate.

EDUCATION
Series 3

100
45.2
32.2

8.6
6.6
3.4

ILLITERATE LITERATE PRIMARY MIDDLE HIGH HIGHER TOTAL

SCHOOL LEVEL
45.2
 CHAPTER 5
CONCLUSION AND SUGGESTIONS
5.1 CONCLUSION
The following conclusion came after the completion of entire study:
Service sector is the fastest growing sector. There is a need for qualified and talented
employees in the service sector industries. As services sectors are vast its necessary to
have a proper HR managememt.

Every service sector organisation are following various HR practices for effective
management of their employees. The employees working in the services sector are
finding their satisfaction at work. The organisations are also taking steps for growth of
their employees.

The services sector organisations have started using new trends in HR management.
These trends help employers to get their work done from employees in right manner
and get better results. The HR practices are helping organisations for effective
management of their HR . these practices are also helping the employees to enhance
their performance.
5.2 SUGGESTIONS
Following are suggestion after the completion of entire study:
1. The organisations should use new ideas or techniques for effective management of
HR.
2. HRM policies and practices should be flexible.
3. The organisations should improve employee’s performance through motivation.
4. Flexible timings and proper work conditions should be provided to employees.
5. The organisation should resolve disputes between its members in a proper manner.
6. The organisations should help employees for their career planning.