1.

0 INTRODUCTION

1.1 CONCEPT OF INTERNSHIP TRAINING

The main aim of Internship Training is to expose students to real work environment
and at the same time gain experience and knowledge through observation and job
execution. From this training, the students will also develop skills in work ethics,
communication, management etc. Moreover, this practical training program allows students
to retain theoretical knowledge with its application in the company.

The purpose of internship training is:

 To provide students the opportunity to test their interest in a particular career before permanent commitments are made.

 To develop skills in the application of theory to practical work situations.

 To develop skills that are directly applicable to their careers.

 To increase a student’s sense of responsibility, commitment, trustworthiness and other work habits.

 To build strength, teamwork spirit and self-confidence in a student.

 To enhance the ability to improve student's creativity skills and sharing of ideas.

1.2 ORIGIN OF THE REPORT

As a part of the curriculum, the students of M.A Human Resource Management (HRM) have to undergo internship training in
any organization for one month. The organization selected for undergoing internship training was ITC LIMITED (Russel Street, Park

1
Street Area), Kolkata. The report must be submitted in the third semester to the Department of Adult and Continuing Education,
University of Madras as a partial fulfillment for the requirement of the degree of M.A Human Resource Management upon completion
of their internship training. The goal of this training is to expose the student in the organizational work situation and also to provide an
opportunity for applying classroom learning in practice.

1.3 OBJECTIVES OF INTERNSHIP TRAINING

 To know the different products of the company

 To identify the various departments in the company

 To analyze the activities of the Human Resource Department

 To understand the CSR activities of the company

1.4 SCOPE OF THE REPORT

The report covers introduction, industry profile, company profile, human resource department activities, observation and learning
experience, conclusion and reference.

1.5 LIMITATIONS OF INTERNSHIP TRAINING

 The internship training was limited to a short period of time of 2 months only.

 The staff members were very busy and were not able to spend more time in answering my queries.

 The IT rules of ITC restrict sharing of information to any other system which is not part of the company’s allotted system. As a
result, the work which was being given to me got limited.

2
 2.0 INDUSTRY PROFILE
2.1 CONCEPT OF CONGLOMERATE
A conglomerate is a corporation made up of a number of different, seemingly unrelated businesses. In a conglomerate, one
company owns a controlling stake in a number of smaller companies which conduct business separately. The largest conglomerates
diversify business risk by participating in a number of different markets, although some conglomerates, such as those in mining
elect to participate in a single industry

Conglomerates are large companies that are made up of independent entities that operate in multiple industries. Many
conglomerates are multinationals and multi industry corporations. Every one of a conglomerate’s subsidiary businesses runs
independently of the other business divisions, but the subsidiaries’ management report to the senior management of the parent
company.

Taking part in many different businesses help a conglomerate’s parent company cut back the risks from being in a single market.
Doing so also helps the parent company lower costs and use fewer resources. But there are times when a company grows too big
that it loses efficiency. In order to deal with this, the conglomerate may divest.

There are many different types of conglomerates in the world today, from manufacturing to media to food. A manufacturer may
begin by making and selling its own products. It may decide to expand into the electronics market, then moving into another
industry like financial services. A media conglomerate may start out owning several newspapers, then buy television and radio
stations, and book publishing companies.

Warren Buffet’s Berkshire Hathaway, a conglomerate that has successfully managed companies involved in everything from plane
manufacturing to real estate, is widely respected and one of the most well-known companies in the world. Berkshire Hathaway has

3
a majority stake in over 50 companies and minority holds in companies ranging from Wal-Mart to car manufacturers. Yet, the
company has an office with a small number of people. Buffet's approach is to manage capital allocation and allow companies near
total discretion when it comes to managing the operations of their own business.

2.2 ROADMAP FOR INDIAN CONGLOMERATES

Indian conglomerates were shaped by their political and economic environment. Today they exert considerable influence on their
environment, and some of them struggle to cope with the changes they have not equipped themselves to cope with. Examinations
of their connections, capital, customers, clans, corruption, and charity/corporate social responsibility- the six C’s- may serve as a
useful roadmap for a self-audit to prepare themselves for even faster changes that they are likely to encounter soon.

1. CONNECTIONS
During most of the 20th century, the majority of conglomerates were created under the license-quota raj before and after
independence. Only those who could connect with the political and administrative elites were granted permission to engage in
business at any significant scale. The monopolistic and monopsonistic power to make money was granted to the favored
entrepreneurs, who snapped up the opportunities when they arose.

2. CAPITAL
Substantial amount of financial capital is needed to build and operate large businesses. In developed capital markets, such capital
is contributed by the promoters, creditors, and equity holders through arms-length transactions based on a significant amount of
audited information to buyers of securities at the pain of severe penalties for both the promoters as well as the auditors for
incomplete or misleading information. Many multi-billion-dollar conglomerates do not even publish their audited financial
statements on their website. It is not easy for an outsider to discern from the financial statements how much capital their promoters

4
actually put into the conglomerate. In this environment, capital itself has become a subsidiary outcome of the promoter’s
connections-mostly with the state-owned banks.

3. CUSTOMER DEMAND
In a market economy, the customer is the king. A major part of management responsibility is to manage and forecast demand,
which serves as the starting point for planning throughout the organization for capital budget, human resources, and production
etc.

2.3 KEY ADVANTAGES

 Due to diversification, conglomerates can reduce their investment risk.

 These structures can create a capital market within the group to allow growth of the conglomerate.

 A conglomerate can grow by acquiring companies, whose shares are more discounted, thereby showing growth in earnings.

 For the management team of a conglomerate, having a wide array of companies in different industries can be a real boon for
their bottom line.

 Poorly performing companies or industries can be offset by other sectors.

 Companies owned by conglomerates have access to internal capital markets, enabling more ability to grow as a company. A
conglomerate can allocate capital for one of their companies if external capital markets aren’t offering as kind terms the
company wants.

2.4 TOP CONGLOMERATE COMPANIES

 BERKSHIRE HATHAWAY INC

5
  3M COMPANY

 RELIANCE INDUSTRIES LTD

 SOFTBANK GROUP CORP.

 SIEMENS AG

 SHK PPT (Sun Hung Kai Properties)

 MITSUBISHI CORPORATION

 CITIC

 CKH HOLDINGS (CK Hutchison Holdings Limited)

 HITACHI, LTD

2.5 CONGLOMERATE EDGE- IN INDIA, BEING PART OF A BUSINESS GROUP STILL ADDS VALUE TO A
COMPANY
Conglomerates were in fashion until the 1970s, when Michael Jensen, finance professor and Noble Prize winner, observed that they
suffer from “billions in unproductive capital expenditures and organizational inefficiencies. This led to the belief that companies or
groups with unrelated multi-business portfolios do a lot of things badly rather than a few things well. As a result, the conglomerate
discount- the value of the diversified group in developed markets is 10%-15% less than the sum of its parts- refers to the penalty that
markets impose on diversified multi-division enterprises.
I would like to distinguish between four different types of multi-business portfolios and argue that one must not necessarily be
pessimistic about all of them.

6
 1. TYPE A are holding groups like Berkshire Hathaway that hold a portfolio of usually listed companies for the long term. The
group center leaves the individual companies to manage on their own without any active search for synergies between its
different businesses.

2. TYPE B are classic conglomerates like General Electric, where the holding company is listed while individual businesses are
unlisted. As a strategy evolves, businesses are acquired or divested according to need, but in general they are in businesses they
wish to run over the long term.

3. TYPE C are private equity firms that usually acquire companies and take them out of the market’s view to repair them. Both
the holding company and the individual business units are unlisted. The reason to acquire is to exit at a much higher valuation
within a tightly defined time horizon

4. TYPE D are business groups like Aditya Birla Group or Tata, which comprise an unlisted holding company and individual
businesses that are usually listed. Business groups are essentially in build mode since most of their businesses are incubated in-
house.

However, various studies have demonstrated that business groups continue to thrive in some well-developed markets such as
Singapore and Sweden, whilst there are some emerging markets such as Pakistan and Peru where business groups perform poorly.

Listed business group companies obtain the benefits of being affiliated with the business group, combined with the scrutiny that comes
from markets and helps reduce the many disadvantages of belonging to a business group.

The benefits that flow from being affiliated with a business group include access to internal capital, talent, technology and product
markets at lower transaction costs. In addition, the heft of the business group with various stakeholders also bring advantages. Listing

7
a business group-affiliated company protects their performance against the frequent criticisms levied against business group-affiliated
firms. Market scrutiny reduces the security given to managers who do not perform, the nepotism of placing the relatives in important
positions, and costly group functions that do not add value to individual group enterprises.

The most telling criticism of business groups used to be the cross-subsidies involving the affiliated companies. Fortunately, increased
regulation in India has led to greater minority shareholder protection and related-party transactions now have to be above board. This
has dramatically lowered the practice of forcing companies to buy uncompetitive inputs from other group companies, of having poorly
performing companies subsidized by better ones, and of tunneling, which refers to moving profits from companies where the business
group had a lower holding to those where its shareholding was higher.

In conclusion, listed companies affiliated with business groups-as at least Indian data indicates-do rather well when compared with
other types of companies and their superior performance is increasing rather than decreasing as markets become more sophisticated.

2.6 CONGLOMERATES-INSIGHTS FROM KPMG’S 2016 GLOBAL MANUFACTURING OUTLOOK

Sector Insights from Ken Seel, KPMGs Formal Global Head of Conglomerates
Disruption is certainly a challenge for today’s conglomerates. But it has also proven to be a massive opportunity. Yes, as
Multinationals with interests in multiple sectors and markets, conglomerates are suffering from the same headwinds faced by
manufacturers around the world. Those with interests in energy have been hit by turbulent energy prices; those with interests in mining
and mining equipment have been hit by the crash in commodity prices and so on.

What has delivered the most success to conglomerates in the midst of disruption has been a stronger ability to define and focus on a
specific ‘field of play’-achieving a better understanding of the relationship between the products they offer and the geographies they
are focusing on. As a result, we are seeing conglomerates becoming much more specialized in certain areas and shedding markets,
products and segments that may not meet their long-term growth and profit targets.

8
The reality is that conglomerates have long led the sector in creating new business models and specializations; the shift from products
to services was largely driven by conglomerates such as General Electric, Philips and others. Looking ahead, expect to see the
Conglomerates place more focus on shaping their portfolio of products and-where possible-incorporating new technologies that make
their products more efficient, more reliable and more valuable to users.

9
 3.0 COMPANY PROFILE
3.1 OVERVIEW OF THE COMPANY
ITC Limited is an Indian Conglomerate founded on 24th August 1910. The company formerly known as Imperial Tobacco Company of
India Limited is currently headed by Sanjiv Puri. The company has its registered office in Kolkata. It employs over 26,147 people at
more than 60 locations across India.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards and Specialty Papers, Packaging, Agri-Business, Packaged Foods
and Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-
Exports, it is rapidly gaining market share in its nascent businesses of Packaged Foods and Confectionery, Branded Apparel, Personal
Care and Stationery.

ITC is one of India’s foremost private sector companies with a market capitalization of US $52 Billion and a turnover of US $8.31
Billion.

ITC is rated among the World’s Best Big Companies, Asia’s ‘Fab 50’ and the World’s Most Reputable Companies by Forbes
Magazine, among India’s Most Respected Companies by Business World and among India’s Most Valuable Companies by Business
Today. ITC ranks among India’s 10 Most Valuable Company Brands, in a study conducted by Brand Finance and published by the
Economic Times. ITC also ranks among Asia’s 50 Best Performing Companies compiled by Business Week. ITC is one of India’s
most valuable and respected corporations.

10
 3.2 HISTORY OF THE COMPANY

The company transformed from being a Tobacco Company with humble beginnings in Calcutta to being one of India’s foremost multi-
business enterprise with a current market capitalization of US$52 Billion. ITC Limited is a successor to UK’s first company to mass
produce cigarettes – W.D & H.O Wills (since 1786). Both the people on which W.D & H.O Wills (William Day Wills & Henry
Overton Wills) was named were non-smokers.

There are very few business enterprises across the world, which at 100 years, are still firing on all cylinders to reach an even higher
orbit of growth. ITC is one such enterprise. ITC was incorporated during the British Raj in India under the name Imperial Tobacco
Company of India Ltd. In 1910. It started in a leased office in Calcutta which at that time was the British Indian Empire’s Capital
(Calcutta (1858-1911)). As the ownership of the company progressively Indianized it was renamed Indian Tobacco Company Ltd in
1970 and then I.T.C Ltd in 1974.

In the 70s the company started diversifying its portfolio in recognition to which the full stops in its name were removed in 2001. The
first one we have is the Packaging & Paperboards Business. The Packaging & Printing Business which was set up in 1925 and the
Paperboards Business which the company entered in 1979 by promoting Bhadrachalam Paperboards Ltd are today well known for
their technology and productivity quality.

In 1975 it started its Hotel Business with acquisition of a hotel in Chennai which is now being renamed Welcome Hotel Chennai.
ITC’s hotel business in India is the 2nd largest hotel chain with 100 hotels spread across 4 brands.

The company set up its Agri Business Division in 1990 which is today India’s largest exporter of Agri Products. Its unique e-choupal
initiative covers over 4 million farmers providing them with internet facility and a solution to tackle challenges posed by the
agricultural sector in India.

11
Wills Navy Cut’s ‘Made for Each Other’ Campaign is one of the longest running and most successful advert campaigns of India. Wills
however had to be distanced from Navy Cut when Tobacco advertising was banned in India so that Will’s lifestyle, ITC’s lifestyle and
retailing business relation could be promoted.

The company has established a nationwide retailing presence through Wills Lifestyle & John Players synonymous with elegance and
style that is effortless and chique.

The company’s branded packaged food business was one of the fastest growing food businesses in India. It began with the
introduction of the brand Kitchens of India- ready to eat Indian homemade dishes in 2001 and now has distinctive, well-known brands
under it like Ashirvaad, Sunfeast, Yippee etc.

In the Education & Stationary sector the company launched premium range of notebooks under the brand Paperkraft in 2002.
Classmate range was launched in 2003 and within 4 years it became India’s largest notebook brand.

ITC entered personal care in 2005 growing under Essensa Di Wills, Vivel, Fiama, Superia & Engage and acquiring brands like
Charmis, Savlon has greatly enhanced its portfolio.

The IT sector of the company operates under ITC Infotech India Ltd.

ITC is the only enterprise in the world of comparable dimensions to be water positive, carbon positive and solid waste recycling
positive.

A lot of factors have added to the success of this company and one of them being its advertising and marketing strategy which is
absolutely on point. Differentiated products in each and every segment, competitive prices, high quality, cost effective & innovative
packaging, competitive edge through E-Choupal, use of its already existing huge tobacco businesses, distribution network, top class

12
ambassadors for advertising and catchy taglines to name just a few and of course the contribution of India’s and this company’s
longest serving CEO Yogesh Chandra Deveshwar has been commendable.

3.3 GLOBAL HONORS OF THE COMPANY

Business-Wise list of Awards
 CIGARETTES- ‘Best Manufacturer of Cigarettes for The Year 2008 & 2007 and Best Exporter of Cigarettes For 2008’

Occupational Health and Safety Award 2007

5 Star Health and Safety Rating in 2007 to the Bengaluru, Munger, Kolkata and Saharanpur factories and the “Sword of
Honor” for Bengaluru and Saharanpur factories in 2006.

 LRBD (Lifestyle Retailing Business)- 2015: Named Superbrand 2015 by the Superbrand's Council of India- Wills Lifestyle.

2009: Most Admired Fashion Brand of The Year- Fashion Forward- Wills Lifestyle.

2003: Most Admired Exclusive Brand Retail Chain of The Year- Wills Lifestyle.

 HOTELS: Bukhara awarded the Best Themed Restaurant at the Travel + Leisure Delicious Food Awards 2018.

Dum Pukht awarded the Best Restaurant Service at the Travel + Leisure Delicious Food Awards 2018.

Avartana awarded the Best South Indian Restaurant at the Travel + Leisure Delicious Food Awards 2018.

 PAPERBOARDS AND SPECIALTY PAPERS: Unit Tribeni won the prestigious 12th edition of CII- National awards for
excellent water management-2018.

13
 Unit Bhadrachalam has won the prestigious ‘National Energy Leader’ award as ‘Excellent Energy Efficient Unit’ consecutively
for the 3rd time in 2018.

NeoWhite Bliss wins Excellence in Sustainability Packaging Award at India Packaging Awards, 2016.

Unit Bhadrachalam is certified as GreenCo Platinum by CII- Godrej Green Building Centre in 2016.

Unit Kovai is certified as GreenCo Platinum by CII- Godrej Green Building Centre in 2015.

 PACKAGING: All the 3 factories are ISO 9001, ISO 14001 and OSHAS 18001 certified.

ITC Packaging is the First in India to achieve Level 8 certification on the International Quality Rating System (IQRS).

Chennai Unit & DHQ achieved Level 8 in 2007, Munger Unit in 2009.

 AGRI BUSINESS DIVISION: United Nations Industrial Development Organization (UNIDO) Award on Sharing
Innovative Agribusiness Solutions 2008 at Cairo for ITC’s exemplary initiatives in agri business through the e-choupal.

The Ashoka-Changemakers ‘Health for All’ Award 2006 for the Rural Health Services model for delivery of health services
through the e-choupals.

The Stockholm Challenge 2006 for the e-choupal initiative. This award is for using information technology for the economic
development of rural communities.

 AGRI BUSINESS DIVISION-ILTD: The Golden Leaf Awards 2007 in the categories Most Committed to Quality and Most
Impressive Public Service Initiative. ILTD is the 1st time winner in these two categories of the Golden Leaf Awards.

The International Quality Rating System IQRS Level 7, awarded by Det Norske Veritas in March 2006.

14
 The Greentech Safety Platinum Award-2006 in the Manufacturing Sector Category for its leaf processing plant at Chirala,
Andhra Pradesh.

 E-CHOUPAL: United Nations Industrial Development Organization (UNIDO) Award at the international conference on
Sharing Innovative Agribuisness Solutions 2008 at Cairo for ITC’s exemplary initiatives in Agri business through the e-
choupal.

The Ashoka-Changemakers ‘Health for All’ Award 2006 for the Rural Health Services model for delivery of health services
through the e-choupals.

The Stockholm Challenge 2006 for the e-choupal initiative.

3.4 VISION STATEMENT

Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the
Indian economy and the Company’s stakeholders.

3.5 MISSION STATEMENT

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable
stakeholder value.

3.6 POSITIONING STATEMENT

"Enduring Value. For the nation. For the Shareholder."

3.7 ITC’S CORPORATE STRATEGIES ARE

15
  Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational
capability with opportunities in domestic and export markets.

 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information
Technology.

 Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal
Vitality.

 Ensure that each one of its businesses is world class and internationally competitive.

 Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities’
residing in ITC’s various businesses.

 Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the
businesses.

 Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of
management by striking the golden balance between executive freedom and the need for effective control and accountability.

3.8 CORE VALUES OF THE COMPANY

ITC’s core values are aimed at developing a customer-focused, high-performance organization which creates values for all its
stakeholders

TRUSTEESHIP: As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We
will actualize stakeholder value and interest on a long-term sustainable basis.

16
CUSTOMER FOCUS: We are always customer focused and will deliver what the customer needs in terms of value, quality and
satisfaction.

RESPECT FOR PEOPLE: We are result oriented, setting high performance standards for ourselves as individuals and teams.

We will simultaneously respect and value people and uphold humanness and human dignity.

We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a
variety of perspectives.

We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through
teamwork.

EXCELLENCE: We do what is right, do it well and win. We will strive for excellence in whatever we do.

INNOVATION: We will constantly pursue newer and better processes, products, services and management practices.

NATION ORIENTATION: We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we
will make no compromise in complying with applicable laws and regulations at all levels.

3.9 ITC LEADERSHIP

Flowing from the concept and principles of Corporate Governance adopted by the Company, leadership within ITC is exercised at
three levels. The Board of Directors at the apex, as trustee shareholders, carries the responsibility for strategic supervision of the
company. The strategic management of the Company rests with the Corporate Management Committee comprising of the whole time
Directors and members drawn from senior management. The executive management of each business division is vested with the

17
Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the
management of its assigned business.

This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom, and
the need for supervision and control.

BOARD OF DIRECTORS: -
 Sanjiv Puri- Chairman and MD

 Nakul Anand- Executive Director

 B Sumant- Executive Director

 Rajiv Tandon- Executive Director and CFO

 Shilabhadra Banerjee- Non-Executive Director

 Hemant Bhargava- Non-Executive Director

 Arun Duggal- Non-Executive Director

 Sunil Behari Mathur- Non-Executive Director

 John Pulinthanam- Non-Executive Director

 Nirupama Rao- Non-Executive Director

 Sahibzada Syed Habib-ur-Rehman- Non-Executive Director

18
  Meera Shankar- Non-Executive Director

 David Robert Simpson- Non-Executive Director

CORPORATE MANGEMENT COMMITTEE: -

 Sanjiv Puri- Chairman of Corporate Management Committee

 Nakul Anand- Executive Director (Hospitality, Travel and Tourism, Lifestyle Retailing)

 B Sumant- Executive Director (Additional Whole time Director)

 Rajiv Tandon- Executive Director and CFO (Finance, Accounting and Internal Audit Functions and Investment Subsidiaries of
The Company)

 Chitranjan Dhar- Chief Executive (Quality Assurance, ITC Life Sciences and Technology Centre, Central Projects
Organization and Environment, Health and Safety)

 S Sivakumar- Agri and IT Businesses of The Company, Chairman of Technico Agri Sciences LTD, Vice Chairman of ITC
Infotech India LTD

 KS Suresh- General Counsel

 Sanjay Singh- Divisional Chief Executive of Paperboards, Paper and Packaging Businesses

 RK Singhi- Executive Vice President and Company Secretary

BUSINESS HEADS: -

19
 Sandeep Kaul- Divisional Chief Executive, Indian Tobacco Division

 Hemant Malik- Divisional Chief Executive, Foods Division

 Sameer Satpathy- Chief Executive, Personal Care Products Strategic Business Unit

 Shailendra Tyagi- Chief Executive, Education and Stationery Products Strategic Business Unit

 Vikas Gupta- Divisional Chief Executive, Lifestyle Retailing Business Division

 Ravi Rayavaram- Chief Executive, Matches and Agarbatti Strategic Business Unit

 Sandeep Sule- Divisional Chief Executive, Trade Marketing and Distribution

 Dipak Haksar- Divisional Chief Executive, Hotels Division

 SK Singh- Divisional Chief Executive, Paperboards and Specialty Papers Division

 R Senguttuvan- Chief Executive, Packaging and Printing Strategic Business Unit

 Sanjiv Rangrass- Divisional Chief Executive, Agri Business Division

3.10 ITC-BUSINESS PORTFOLIO

20
ITC-FMCG AND CIGARETTES
CIGARETTES
ITC is the market leader in cigarettes in India. It’s highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold
Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. ITC's cigarettes are produced in its state-of-the-art factories
at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology
and work environment. ITC has presence in overseas markets as well. In the extremely competitive US market, ITC offers high-
quality, value-priced cigarettes and Roll-Your-Own solutions.

FOODS

21
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A
more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments.
The Foods business strives to deliver quality food products to the consumer.

The Foods business is represented in 4 categories in the market. These are:

 Ready to Eat Foods

 Staples

 Confectionery

 Snack Foods

ITC’s six brand of food include Kitchens of India, Aashirvaad, Sun feast, Minto, Candyman, Bingo

LIFESTYLE RETAILING
ITC ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle,
the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Club life evening wear,
fashion accessories and Essenza Di Wills – an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills -
a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear. With a distinctive
presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion
wardrobe to the male youth of today.

EDUCATION & STATIONARY

22
ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks. ITC's Education and Stationery
Products are marketed under the brands "Classmate" and "Paperkraft". The Classmate range of products is targeted at satisfying
education & stationery needs of students & young adults. The product range includes Notebooks, Math Instruments, Scholastic
Products as well as Writing Instruments. The Paperkraft range of products aims at satisfying the stationery needs & office
consumables need of office executives & working professional. The continuously expanding product range under Paperkraft includes
Premium Business Paper, Paper Stationery, Markers & Highlighters.

SAFETY MATCHES
ITC’s range of Safety matches include popular brands like I Kno, Mangaldeep, Aim, Aim Mega and Aim Metro. With differentiated
product features and innovative value additions, these brands effectively address the needs of different consumer segments. ITC aims
to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development
and marketing strengths, especially the breadth and depth of the Company's trade marketing and distribution.

AGGARBATTIS
ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. Mangaldeep Agarbattis are
available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and
Mogra. Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide consumer acceptance.
The premium range from ITC, Mangaldeep has two offerings, Pratiti and Sarvatra and is specially hand rolled by Cottage Industries,
Sri Aurobindo Ashram, Pondicherry.

PERSONAL CARE
ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of
brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer

23
research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to
quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel
UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.

ITC HOTELS
Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become synonymous with Indian hospitality. ITC Hotels
pioneered the concept of 'Responsible Luxury' in the hospitality industry, drawing on the strengths of ITC groups' exemplary
sustainability practices. Responsible Luxury personifies an ethos that integrates world-class green practices with contemporary design
elements to deliver the best of luxury in the greenest possible manner.
With more than 100 hotels in over 70 destinations, ITC Hotels has set new standards of excellence in the hotel industry in
Accommodation, Cuisine, Environment and Guest Safety.

ITC Hotels properties are classified under four distinct brands:

ITC Hotels has an exclusive tie-up with the 'Luxury Collection' for twelve of its hotels. ITC Hotels - Luxury Collection are super
deluxe luxury hotels located at strategic business and leisure locations. The hotels which are part of this collection are: ITC Grand
Bharat in Gurugram, ITC Grand Chola in Chennai, ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand
Central in Mumbai, ITC Windsor & ITC Gardenia in Bengaluru etc.

WelcomHotels offer five-star hospitality for the discerning business and leisure traveler. Currently there are 14 hotels under this brand
namely, WelcomHotel Dwarka - New Delhi, WelcomHotel Bella Vista - Panchkula-Chandigarh, WelcomHotel Jodhpur - Jodhpur etc.
offer warm, comforting services to the global traveler and a chance to connect.

24
Fortune Hotels operates mid-market to upscale properties in the first-class, full-service business hotel segment all over India, in major
metros, mini metros, state capitals and business towns, promising business and leisure travelers a wide choice of destinations and
accommodation.

WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique experience. WelcomHeritage
endeavors to preserve ancient royal homes and the historical Indian grandeur and opulence for the future Indian generations.

ITC INFOTECH
A specialized global full-service technology solutions provider ITC Infotech is led by Business and Technology Consulting. ITC
Infotech’s Digitaligence@work infuses technology with domain, data, design, and differentiated delivery to significantly enhance
experience and efficiency, enabling our clients to differentiate and disrupt their business. ITC Infotech is a fully-owned subsidiary of
ITC Ltd, one of India’s foremost private sector companies and a diversified conglomerate.

ITC AGRI BUSINESS

ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based on strong and enduring farmer
partnerships that has revolutionized and transformed the rural agricultural sector. A unique rural digital infrastructure network, coupled
with deep understanding of agricultural practices and intensive research, ITC has built a competitive and efficient supply chain that
creates and delivers immense value across the agricultural value chain.

ITC's Agri Business is the country's second largest exporter of Agri-Products. It currently focuses on exports and domestic trading
of:

 Food Ingredients - Soya meal

 Food Grains - Wheat & Wheat Flour, Rice, Pulses, Barley & Maize

25
  Marine Products - Shrimps and Prawns

 Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit Products

 Coffee

Farmer empowerment through e-Choupals

The unique e-Choupal model creates a significant two-way multi-dimensional channel which can efficiently carry products and
services into and out of rural India, while recovering the associated costs through Agri-sourcing led efficiencies. This initiative now
comprises about 6100 installations covering over 35000 villages and serving over 4 million farmers.

ITC PACKAGING
ITC's Packaging and Printing Business is a leading provider of superior value-added packaging for the consumer-packaged goods
industry. ITC's Packaging and Printing Business has established itself as a one-stop shop offering a wide range of superior and
innovative packaging solutions. The Business also provides strategic support to ITC's FMCG Businesses by facilitating faster
turnaround for new launches, design changes, ensuring security of supplies etc. The manufacturing facilities at Tiruvottiyur, Haridwar
and Munger maintained the highest standards in Quality and Environment, Health & Safety (EHS).

TYPES OF PACKAGING:

 CARTON BOARD PACKAGING

 FLEXIBLE PACKAGING

 TOBACCO PACKAGING

ITC PAPERBOARDS AND SPECIALTY PAPERS

26
ITC's Paperboards and Specialty Papers Business is the leader in volume, product range, market reach and environmental
performance. Providing internationally competitive quality and cost, the Business caters to a wide spectrum of packaging, graphic,
communication, writing, printing and specialty paper requirements.

3.11 SUBSIDIARIES, JOINT VENTURES AND MAJOR ASSOCIATES OF ITC LIMITED

SUBSIDIARIES OF ITC LIMITED:
1. Russell Credit Ltd.
2. Gold Flake Corporation Ltd.
3. ITC Investments and Holdings Ltd.
4. Landbase India Ltd.
5. ITC Infotech India Ltd.
6. Surya Nepal Pvt. Ltd.
7. Srinivasan Resorts Ltd.
8. Fortune Park Hotels Ltd.
9. Bay Islands Hotels Ltd.
10. Welcome Hotels Lanka (Pvt.) Ltd., Sri Lanka
11. Wimco Ltd.
12. Technico Pty Ltd., Australia
13. Technico Agri Sciences Ltd.
14. North East Nutrients Pvt. Ltd.

27
 JOINT VENTURES OF ITC LTD.:
1. Maharaja Heritage Resorts Ltd.
2. Espirit Hotels Pvt. Ltd.

MAJOR ASSOCIATES OF THE GROUP:

1. Gujarat Hotels Ltd.
2. International Travel House Ltd.
3. Logix Developers Pvt. Ltd.

3.12 MARKETING STRATEGY USED BY ITC

ITC started an earnest exercise by creating a new brand image and corporate philosophy by investing in new business categories like
personal care, premium apparel, rural business (E- Choupal) and foods. All along using its famed distribution strengths built through
its successful past businesses like cigarettes, paperboards and packaging, hotels and Agri business, to create synergies across its
verticals and help prop up its new businesses, like personal care and foods. ITC has a well-thought-out strategic approach. Rather than
acquiring weaker brands to get into these new segments inorganically, it created a range of new personal care and branded apparel
brands.
But behind this launch was five years of intensive on ground research of market conditions and consumer expectations. Over one lakh
consumers were surveyed across the country to test various prototypes. Acceptance benchmark was kept as high as 90 percent for the
final products. ITC called this exercise as '3E’ approach —explore, establish and execute. As an adage goes 'if you have to win a race,
you have to clearly target the No 1', ITC too aimed the No 1 which happened to be the formidable HUL (which still reigns over 50
percent of the FMCG market). And ITC's target was HUL and P&G only.
DISTRIBUTION SYSTEM AT ITC

28
The process of passing down each passing the product down the chain to the next organization through Chain of intermediaries, before
it finally reaches the consumer or end-user is known as the 'distribution chain' or the 'channel.'

A number of alternate 'channels' of distribution may be available:

 Distributor, who sells to retailers,

 Dealer Or wholesaler, who sells to end customers

 Advertisement typically used for consumption goods

ITC follows:
CHANNEL WISE DISTRIBUTION
Here the total product is divided into different channels like, Health care product, Personal care products, Home products & etc.

BEAT WISE DISTRIBUTION

Here the total market is divided into different areas where the products are served to all the outlets exist in that area.

3.13 WHY FMCG?

Entering the food’s business was itself a strategic decision for ITC. ITC’s core business Tobacco was under pressure owing to several
factors like government bans on advertising and on smoking in public places. Because of hikes in excise duty for cigarettes and anti-
tobacco campaigns, ITC planned to deploy its surplus in the packaged food business where it saw huge potential.

3.14 ITC’S MAJOR COMPETITORS

Let’s have a look at the various competitors of ITC

29
ITC’s Competitors in the FMCG Segment:

ITC’s Competitors in Hotels:

30
ITC’s Competitors in Cigarettes:

3.15 SWOT ANALYSIS OF ITC LIMITED

STRENGTHS:
 Portfolio of Business

 Strong Brands in Various Businesses

 Effective Social Business Initiatives

 Inter and Intra Divisional Synergy

WEAKNESSES:

 High Proportion of Revenues from Tobacco Products

31
  Association with Tobacco Products Affects the Image

 An Increase in Tax on Tobacco Effects Revenue

OPPORTUNITIES:
 Strategic Acquisitions

 Growth in Purchasing Power and Improving Lifestyle

 Growing Personal Hygiene as well as Food Processing Industry in India

 Utilize opportunities created in the Rural Market

THREATS:
 Intensifying Competition in FMCG

 Increasing Awareness on Health

3.16 ITC A RESPONSIBLE CITIZEN

ITC is doing so many activities for the welfare of society and stands as a responsible corporate leader without any gap. Some of its
major societal activation for the welfare of different section of society is as follows-

WOMEN EMPOWERMENT PROGRAMME:

This program has helped more than 4 lakh women to become self-sufficient. It imparts education to rural women so that a better
society can be made. It has created self-help groups of women who have now become self-sufficient by self-micro financing. It tries to
impart education to the children through the local educated women.

32
SOCIAL FARM AND FORESTRY:
It helps farmers and tribals to produce plantations on their wastelands. It provides farmers with cloned seeds which grow and produce
better in harsh conditions. It provides farmers with know-how to convert their wasteland into a plantation producing land.

WATERSHED DEVELOPMENT PROGRAMME:

It provides water to the areas where there is a scarcity of water harvesting. This plan covers 1 lakh hectares of water-stressed lands. It
helps in the building of water-harvesting, water-retaining structures in water-stressed areas.

EMPOWERING THE DIFFERENTLY ABLED:

ITC gives a fair chance to the differently abled people to earn a livelihood. It has employed over 100 differently abled persons in jobs
like house-keeping, teleworking, bakeries etc. The company provides these people with special training and equipment's to deal with
their day to day work.

WOW-WEALTH OUT OF WASTE PROGRAM:

It promotes resource conservation and recycling of waste. It educates and creates awareness about the need of Reduce-Reuse-
Recycle. Provides recyclable materials like glass, paper, plastic to the industries. Its operational in Chennai, Hyderabad, Bangalore,
Cochin, Coimbatore, Madurai, Trichy. It helps to augment green cover, conserves natural resources and reduces wastage.

PRESERVING NATIONAL HERITAGE:

As a socially responsible corporate citizen, ITC Endeavors to create value for the Indian society in multiple ways, one of them being
“Preservation of India”. Besides this, ITC has made significant contribution to the Promotion of Indian classical music, theatre, art and
cuisine.

33
 4.0 HR PRACTICES IN ITC
4.1 INTRODUCTION
Firstly, I would like to discuss about the HR practices. What are HR practices?

HR practices are those practices which are done by the organization for having optimum utilization of human resource of the
organization. These practices can be explained as follows:

 Recruitment and Selection

 Training and Development

 Performance Appraisal System

 Evaluation System

 Feedback Mechanism

 Rewards to Employees

 Work Remuneration of The Employees

 Increment Practices

4.2 INTRODUCTION OF HRD PRACTICES IN ITC

The purpose of the Human Resources initiative was to develop strategic, integrated and competency- based HR management to enable
the organization to meet its new mission, values and goals in a results-based manner. A core component of the HR work was to support
the development of the new organization structure to reflect ITC’s strategic objectives and lines of business. HR also led the internal

34
communications strategy which included a regular internal newsletter to help manage staff concerns about the change process and
bring them on board with the reforms.

ITC began the development of a People Strategy. This underpins ITC’s commitment to attract, develop, support and retaining the best
staff. In addition, it provides strategic direction to guide and align people management efforts throughout the organization. The
strategy has five primary goals:

 Source, attract and recruit world-class talent.

 Promote excellence in the fields of leadership and people management.

 Encourage and support staff in their continuing professional development.

 Provide staff with a diverse and supportive working environment.

 Develop efficient, transparent and responsive HR processes to support ITC’s business delivery.

4.3 HRD PRACTICES IN ITC

ITC is one of India’s foremost private sector companies and a diversified conglomerate with interests in Consumer Goods, Hotels,
Paperboards and Packaging, Agri Business and Information Technology. ITC has been rated among the World’s Best Big Companies,
Asia’s Fab 50 and among India’s Most Valuable Companies by Business Today. These achievements are an extension of ITC’s
continuing story of transformation, from a single product company to a diversified conglomerate with multiple drivers of growth.

ITC’s approach to human resource is premised on the fundamental belief of fostering meritocracy in the organization, which promotes
diversity and offers equality of opportunity to all employees. It does not engage in or support direct or indirect discrimination in

35
recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age,
race, color, ancestry, marital status or affiliation with a political, religious, union organization or minority group.

4.4 ITC’S INITIATIVES

 Recognizing that business enterprises are economic organs of society and are drawn on societal resources, it is ITC’s belief that
a company’s performance must be measured by its Triple Bottom Line contribution to building economic, societal and
environmental capital. As an Indian enterprise, ITC believes that this approach can unleash strong drivers, making growth
more inclusive and equitable.

 ITC has implemented an extensive social Investments program in geographies where the Company has strategic business
interests and presence. To ensure long term sustainability of these investments, and to enable replicability and scalability, these
programs have been aligned and integrated with the business value chains of the Company.

 The programs strive to empower stakeholder communities to conserve and manage their natural resources, create sustainable
on and off farm livelihood sources and improve social infrastructure in order to support creation of sustainable livelihoods on a
significant scale backed by an empowered stakeholder community.

 ITC continues to progress our strategic agenda of remaining globally competitive and creating engines for sustainable growth
by nurturing quality talent and blending proven skills and capabilities drawn from different parts of the ITC Group.

 ITC has strived to attract and retain talent through various initiatives that focus on providing personal development and
growth, a work culture that ensures high levels of performance, world-class learning and a conducive work environment.

 ITC has further strengthened the organizational vitality and competitiveness through various efforts including developing
agility and creativity to speedily embrace change, developing leaders from a pool of talented, passionate and diverse

36
 individuals, creating an environment where employees are inspired, engaged and aligned with the Company’s Vision, Mission
and Core Values.

ITCs Talent Management strategy is focused on building a future-ready talent bank in the organization to ensure a pipeline of high-
quality managerial talent, specialists and business leadership. The talent engagement approach is based on:

 Attracting and nurturing quality talent supported by significant investments in learning and development, a culture of care and
concern supported by systems and processes that encourage engagement and involvement.

 Creating a responsive, stakeholder- centric and market focused culture that enhances organizational capability and vitality.

ITC recruits quality talent from premier campuses across the country through an objective and robust selection process. New
employees are assigned to various businesses of the Company and are deployed across the country.

4.5 INTRODUCTION OF RECRUITMENT

The human resources are the most important assets of the organization. The success or failure of an organization is largely dependent
on the caliber of the people working therein. Without positive and creative contribution from people, organization can’t progress and
prosper. In order to achieve the goals and perform the activities of an organization, we need to recruit people with requisite skills,
qualification and experience. While doing so we have to keep the present as well as future requirements of the organization in mind.

OBJECTIVE
 To effectively manage the manpower recruitment in coherence with long term and short-term manpower planning of the
organization through a standard recruitment and selection policy.

37
  To proactively and systematically identify the recruitment needs in time. To ensure that all the recruitment is within the
manpower budget and as per the laid down policy.

SCOPE:
This policy shall apply to all permanent management positions in the company including the workmen.

IDENTIFICATION OF VACANT POSITIONS

1. Total permanent manpower strength/budget for the organization has been sanctioned by the Board of Directors.

2. All the recruitment has necessarily to be made within the approved budget/strength only.

3. Vacancies against the sanctioned budget may arise due to:

 Retirement

 Turnover

 Natural Separation

4. Whenever a vacancy arises, the concerned department has to fill up the prescribed manpower requisition form clearly
indicating the job description and specification, time frame and send it to the HR department.

HR PLANNING
HRP is the process of forecasting an organization’s future demand for and supply of, the right type of people in the right number. It is
only after this that the HRM department can initiate the recruitment and selection process. HRP is the sub-system in the total
organizational planning. Organizational planning includes managerial activities that set the company’s objective. HRP facilitates the

38
realization of the company’s objectives by providing the right type and right number of personnel. HRP is variously called manpower
planning, personnel planning and employment planning.

RECRUITMENT SOURCES
The sources of recruitment may be broadly divided into two categories- internal sources and external sources. On receipt of the
Manpower Requisition (MPR) form HR department will initiate the action of sourcing the candidates as under:

1. INTERNAL SOURCES
 As a matter of policy, the organization will encourage to fill up the vacancies from within the existing people if they are
fulfilling the criteria and found suitable.

 In order to invite application from internal sources, notice/circular for all such vacancies will be put up.

 In case any permanent employee dies in harness due to accident or any other reason, the dependent son of the deceased
employee may be given preference in employment with the company subject to his fulfilling the eligibility criteria based on
qualification and experience as well as suitable vacancy in the company at that time.

 The conditions fulfilling the requirement may apply against internal notification to the HR department through their
department.

2. OTHER SOURCES
Other sources can be tapped for recruitment only when suitable candidates are not available internally. Other sources may include
the following:

39
 Internal data bank

 Local employment exchange

 Advertisement through the newspaper

 Placement agencies

METHODS OF RECRUITMENT
The following are the most commonly used method of recruiting people:

1. Internal Method

2. Direct Method

3. Indirect Method

INTERNAL METHOD
 PROMOTIONS AND TRANSFERS
ITC prefers to fill vacancies through promotion or transfers within wherever possible. Promotion involves movement of an
employee from a lower level position to a higher-level position accompanied by changes in duties, responsibilities, status and
value.

It may lead to changes in duties and responsibility, working conditions etc. but not necessarily salary. Internal promotions and
transfers certainly allow people greater scope to experiment with their career, kindling ambitions and motivating them to take a

40
shot at something they might otherwise never have considered. The system, of course, works best for young executives who are
willing to take risks.

 JOB POSITION
Job position is another way of hiring people from within. In this method, the organization publicizes job openings on bulletin
boards, electronic media and similar outlets.

 EMPLOYEE REFERRALS
Employee referral means personal contacts to locate job opportunities. It is a recommendation from a current employee regarding
a job applicant. The logic behind employee referral is that “it takes one to know one” employee working in the organization in this
case, are encouraged to recommend the name of their friends working in other organization for a possible vacancy in the near
future. In fact, this has become a popular way of recruiting people in the highly competitive information technology industry
nowadays.

DIRECT METHOD
 CAMPUS RECRUITMENT
It is a method of recruiting by visiting and participating in college campuses and their placement centers. Here the recruiters visit
reputed educational institutions such as IITs, IIMs, colleges and universities with a view to pick up job aspirants having the
requisite technical and professional skills. Job seekers are provided information about the jobs and the recruiters in turn get a
snapshot of job seekers through constant interchange of information with respective institutions. A preliminary screening is done
within the campus and the shortlisted students are then subjected to the remaining part of the selection process. In view of the
growing demand for young managers, most reputed organizations visit regularly and even sponsor certain popular activities with a
view to earn goodwill in the job market.

41
INDIRECT METHOD
 ADVERTISEMENT
This includes an advertisement in newspapers, trade, professionals and technical journals, radio and TV etc. In the recent times this
medium became just as colorful, lively and imaginative as consumer advertising. The ad generally gives a brief outline of the job
responsibilities, compensation package, prospects in the organization etc. This method is appropriate when (a) the organization
intends to reach a large target group and (b) the organization wants a fairly good number of talented people who are geographically
spread out.

 HEAD HUNTERS
There is an influx of executive search engines also known as head hunters who specialize in selection of professionals for very
senior or top posts, where applicants are in short supply and employers have no time to go around in search of the best talents.
Such vacancies are fewer and organizations prefer hiring a head hunter who maintains confidentiality of the employer and
specializes in recruiting the best talent strictly as per the job specification.

4.6 SELECTION PROCEDURE

1. SCREENING OF APPLICATION
 All applications received from various sources are screened by the concerned department and HR based on the job description,
specification and the applicant profile.

 Shortlisting of prima facie suitable candidates who should be called for test/interview shall be prepared.

 The ratio between the number of vacancy and the number of candidates to be called for test/interview should normally be 1:5.

2. TEST

42
 Depending on the requirement of the job if required, management may conduct written/aptitude/psychometric/physical or any
other test as deemed fit.

 Shortlisted applicants shall be sent a formal letter for appearing for the test at least 15 days in advance.

 Qualifying criteria for the test will be determined by the management depending on the nature and requirement of the job.

3. INTERVIEW
 All the candidates shortlisted for interview are informed through a formal call letter for attending interview at least 15 days in
advance.

 The candidate is then interviewed by the interview panel.

4. FINAL SELECTION AND APPOINTMENT

 Recommendation for the interview panel is put up before the MD by the HR department for his approval.

 Candidates for the officer and above after interviewed by the panel are finally interviewed by the MD.

 Selection of candidates is strictly on the basis of merit. Other things being equal local candidates from the state are given
preference.

 Appointment letter is issued to the finally selected candidates after duly approved by MD. However, an appointment letter can
be issued to the candidates and the detailed formal appointment letter can be issued at the time of joining.

 Before letter of appointment is issued to the candidates, the HR department will ensure the following:

1. Check and verify all the personal details furnished by the candidates.

43
 2. Verify the certificates and other personal credentials.

3. Make necessary reference/antecedents' verifications whenever required.

5. JOINING FORMALITIES
(a) Employees joining shall first report in the HR department who will facilitate in completing the joining formalities such as
filling of joining report and other necessary forms.

(b) HR department will ensure that the candidates are allowed to join subject to them being found medically fit.

4.7 TRAINING AND DEVELOPMENT

ITC has consistently fostered a culture that rewards continuous training, collaboration and development across the organization to be
future-ready and to meet the challenges posed by ever- changing market realities.

ITC's Training & Development vision reinforces this agenda by seeking to build ITC's talent and leadership pipeline and enhance
organizational capability to compete, win in the marketplace and create enduring value for their stakeholders and society. ITC's
Training & Development initiatives include core programs straddling various dimensions of Leadership, Capability Enhancement and
Skill(s) Development etc. These programs cover not just functional competencies but behavioral inputs as well, to ensure
comprehensive development of our human resources.

ITC’s training and development center is named Epicenter. This Epicenter is where the trainees sharpen their skill sets, foster
innovation and encourage freedom of thought. It symbolizes their need to excel in every sphere of functioning through knowledge
building and skill enhancement.

44
Behavioral training includes soft skills development sessions for the employees. These workshops include training in leadership skills,
customer delight, communication skills, time management, creativity and innovation, team building exercises etc. It is also very
important that the employees have a domain understanding of the business areas they work in.

ITC also has a robust e-learning platform titled PROP-EL for their growing and global workforce. Employees across the globe are able
to access this system and undertake training in a variety of subjects at their own time and pace. They can also participate in
assessments of their capabilities online.

AUT INDUCTION
AUTs, after they join ITC, are taken through a two-week corporate induction program wherein various Business Heads introduce them
to their businesses. The induction program is also aimed at facilitating a smooth transition from campus to the corporate world as well
as to provide an opportunity to interact with business leaders. On the whole the program aims at giving an AUT an understanding of
what defines ITC, how ITC works and the lives ITC touches.

Once AUTs join their respective businesses, they go through a division and function specific detailed induction program which
provides them a thorough overview of the business model of the division, introduces them to various functions within the business and
gives them an extensively detailed insight into their own function.

MIND OVER MATTER

As a precursor to the internship, a two-day orientation program called 'Mind Over Matter' is organized for the technical interns. This
program is intended to provide insights that enable the interns apply their academic learning more effectively to real life work
challenges. In the ultimate analysis this program focuses on how summer internships can be made more meaningful both for the
student and the organization.

45
TRAINING METHODS FOLLOWED IN ITC
1. ON-THE-JOB TRAINING METHODS
This type of training, the individual is placed on a regular job and taught the skills necessary to perform the job. On-the job
training has the advantage of giving firsthand knowledge and experience udder the actual working conditions.

 Job instruction

 Coaching

2. OFF-THE-JOB TRAINING METHODS

During this type of training, the trainee is separated from the job situation and his attention is focused upon learning the material to
his future job performance. Here the trainee can place his entire concentration on learning the job rather than spending his time in
performing. It involves:

 Vestibule Training Method

 Role Playing Method

 Movies/Videos/Computer Based Training

 Discussion

TRAINING PROCEDURE FOLLOWED IN ITC

The following training procedure is an essential adoption of the job instruction training course, which has been proved to have
great values. The important steps in the training procedure are:

46
1. PREPARING THE INSTRUCTOR
The instructor must know both the job to be taught and how to teach it. The job must be divided into logical parts so that each can
be taught at a proper time without the trainee losing the plan. For each part, one should have in mind the desired technique of
instruction, that is, whether a particular point is best taught by illustration, demonstration or explanation.

2. PREPARING THE TRAINEE

As in interviewing, the first step in training is to attempt to place the trainee at ease. Most people are somewhat nervous when
approaching an unfamiliar task. Though the instructor may have executed this training procedure, many times he or she should
never forget its newness to the trainee.

This stage of the program is class hour teaching involving the following activities:

 Planning the program.

 Preparing the instructor’s outline.

 Not to try to cover too much material.

 Keep the session moving along logically.

 To discuss each item in depth.

 To repeat, but in different words.

 To take care, the material from standardized texts when it is available.

47
 To teach the trainee about standards like quality, quantity, waste or scrap, ability to work without supervision, knowledge or
procedure etc.

3. PRESENTING THE OPERATION

There are various alternative ways of presenting the operation viz, explanation, demonstration etc. An instructor mostly uses these
methods of explanation. In addition, one may illustrate various points through the use of pictures, charts, diagrams and other
training aids.

4. TRY OUT THE TRAINEE’S PERFORMANCE

As a Continuation of the presentation sequence given above, the trainee should be asked to start the job or operative procedure.
Some instructors prefer that the trainee explain each step before doing it, particularly if the operating involves any danger. The
trainee, through respective practice will acquire more skill.

5. FOLLOW UP
The final step in most training procedures is that of the follow-up. Follow-up can be adapted to a variable reinforcement schedule.
As suggested in the discussion of learning principles, every training program should have a follow-up otherwise the training
programs in the future can’t be improved.

After Making the Above Steps the Trainer Has to Take the Following Steps:
1. TRAINING NEEDS IDENTIFICATION
2. PREPARING A TRAINING PLAN
3. PREPARING A TRAINING CALENDAR
4. EXECUTION OF TRAINING AS PER THE TRAINING CALENDAR

48
5. TRAINING FEEDBACK FROM THE EMPLOYEES
6. EVALUATION OF THE TRAINING IMPARTED

TRAINING FOR DIFFERENT EMPLOYEES

Employees at different levels require training. Unskilled workers require training in improved methods of handling machines and
materials to reduce the cost production and waste and to do the job in the most economical way. Such employees are given training
on the job itself and the training is imparted by their immediate superior officers, foreman. The training period ranges from 3
weeks to 6 weeks.

TRAINING PROCESS
The steps to be followed in ITC in conducting the training process would be:

Setting Evaluation Criteria

Assessing the knowledge prior to training

Trained or developed Workers

Assessing the knowledge after training

49
 ↓

Transfer to the Job

Follow up Studies

4.8 Management Development Methods Used in ITC

On the Job Experience
 Coaching

 Multiple of Management

 Under Study

Formal Training
 Incident Method

 Conference

 In Basket Method

 Sensitivity Training

4.9 PERFORMANCE APPRAISAL

50
The cornerstone of the performance management system is the Appraisal System in ITC. The individual agrees to perform
objectives at the beginning of the year with his/her superiors. These objectives naturally flow from the objectives of the
unit/business. At the end of the year the individual’s performance is assessed against the objectives set. The appraisal attaches as
much importance to how results are achieved as to the results themselves. The rating is determined by the managers and endorsed
by his boss. Therefore, two individuals are involved in assessing a manager’s performance. Remuneration changes are made once
every year based on the performance rating of the individual. The entire process is transparent.

ITC’s remuneration strategy is anchored in three basic principles: market-led, performance leveraged and the capacity to pay.
Remuneration is benchmarked with the identified comparator organizations and reviewed periodically. Apart from the monetary
component which comprises Consolidated Salary and Supplementary Allowance, managers are provided with quality
accommodation, medical assistance for self and family, leave, travel assistance etc.

At middle and senior levels, managers are provided with company-maintained cars and the facility of a club membership for
business purposes. All managers are members of ITC’s Retirement Funds, the Pension Scheme being one of the most attractive in
the country. Other benefits include the facility of holiday homes, assistance for further education/self-development etc.

THE PERFORMANCE APPRAISAL PROCESS IN ITC

Step 1: Establishment of performance standards as per their service industry. For this one should be derived from the company’s
strategic goals and job analysis and job description.

Step 2: Communication of performance standards to employee who are working in the service industry.

Step 3: Measure performance by using information from personal observation, statistical reports, oral reports, written reports,
comparison of actual performance with standards in the service industry.

51
Step 4: Discuss appraisal system with employee and identification of corrective action where necessary in the service industry.
The service industry can use three approaches performance appraisal Methods like Absolute standards, Relative standards, and
Objectives standard.

1. ABSOLUTE STANDARDS mean employee’s performance is measured against established standards. Evaluation is
independent of any other employee.
Absolute Standards include-
Essay Appraisal: Appraiser writes a narrative describing employee performance and suggestions.

Critical Incident Appraisal: Based on a key behavior incident illustrating effective or ineffective job performance.

Checklist Appraisal: Appraiser checks off behaviors that apply to the employee.
Adjective Rating Scale Appraisal: Appraiser rates employee on a number of job-related factors.
Forced-Choice Appraisal: Appraisers choose from sets of statements which appear to be equally favorable, the statement which
best describes the employee.
Behaviorally Anchored Rating Scales (BARS): Appraiser rates the employee on factors, which are defined by behavioral
descriptions.

2. RELATIVE STANDARDS method means employees are evaluated by comparing their performance to the performance of
other employees. This method includes-
Group Order Ranking: Employees are placed in a classification reflecting their relative performance, such as “top one-fifth".
Individual Ranking: Employees are ranked from highest to lowest.
Paired Comparison: Each individual is compared with one another. Final ranking is based on number of times the individual is
preferred member in a pair.

52
 3. SERVICE STANDARDS method means ‘Achieved Outcome Method’ I.e. Management by Objectives (MBO) should be used
for performance appraisal. This method includes mutual objective setting and evaluation based on the attainment of the
specific objectives.

4.10 HUMAN RESOURCES

With over 31,000 employees across the group, scores of manufacturing facilities and operations spread all over the country, the
Human Resources function in ITC offers very challenging career opportunities. With a legacy of over a hundred years, management of
the human resource relies heavily on the wealth of experience of the past and simultaneously, constantly reinvents itself to remain
contemporary and contribute to the achievement of their strategic objectives.

ITC’s human resource policies and strategies seek to ensure that HR systems and processes focus on building a customer focused
organization that further enhances the organizational capability to compete and win the market.

ITC provides you an opportunity to experience the diversity present within the Human Resources function ranging from Employee
Relations and Employee Engagement- Negotiations, Employee Welfare, Building Alignment, Productivity Enhancement, Process
Excellence to Salary and Wage Administration, Statutory Compliance, Corporate Social Development initiatives. The diversity of
ITC’s businesses also ensures that one experiences the varied dynamics of the function that comes into play in different business
scenarios.

A typical career in HR entails significant experience in each of the areas mentioned above, which helps one develop as a holistic HR
manager. A career in ITC will lead one from being a part of a unit to heading a unit/region, to heading various functions within HR
and finally to heading the function at the divisional or corporate level. One will be encouraged to be a part of various cross functional
teams, an experience that will enable one to understand how different functions work synergistically to produce business outcomes.

53
 4.11 SPECIALISTS
ITC recognizes the need to nurture specialism and expertise in the areas that give the company a distinct competitive advantage. In
keeping with this need, the Company has put in place a unique strategy to attract, retain "specialists", anchored in the following
premises:

 In each function certain specific positions require possession of unique authority over a critical aspect of the business,
knowledge and skills that are unique and not common across industries and are not easily replaceable.

 There are certain positions in any organization where longevity of the individual in that position leads to acquisition of in-
depth knowledge and experience which would take another individual in that position years to acquire. Therefore, there is a
need to retain individuals in these key positions for as long as is possible.

In keeping with this approach, certain positions have been identified to be “specialist” in nature. These include Research Scientist,
Leaf Blender, Agronomist, Legal Resource in Trade Marks, Tobacco and Health, Paper Maker, Forex Dealer, Chef, Food and
Beverage Specialist, etc. The remuneration of individuals in these specialist positions is de-linked from the remuneration matrix
applicable to the rest of the business and is determined by the criticality of skill, individual competence and experience.

4.12 SUMMARY
Finally, the HRD Practices in ITC are explained to a major extent in every field of business activity. Every department designs its own
feedback forms, which the employee has to fill from time to time. Despite these efforts at times the people working in the organization
for many years tend to command most of the decisions. Authenticity is close to openness, the employees do not feel hesitant to come
out with their views and own up their mistakes, as ITC’s culture doesn't believe in firing people for every small mistake unless and
until it is really drastic.

54
In addition, it is vital that the full set of HRs available to ITC is considered holistically. The general service staff/Permanent
Professional staff boundary is a particular issue. There are highly qualified General Service staff frustrated by their managers attitudes
towards them and their inability to progress, often working alongside permanent professional staff who are no more qualified. There is
little evidence of forward planning of HRM in ITC. The evaluation could identify no policies relating to the kinds of HR skills and
attributes of ITC will need in the future and how it intends to make the transition towards those capabilities.

ITC maintains a “consultants” roster, which includes key information on each individual’s qualifications and experience, and from
which the staff can select potential candidates when external consultancies are needed. Consultants are identified through the network
of the professional staff of ITC. The HRS (Human Resource System) screens the candidates to ensure that they meet the minimum
qualifications.

5.0 OBSERVATION AND LEARNING EXPERIENCE

POLICIES AND PROCEDURES

55
Health Care & Insurance: Its completely taken care of by the employer. Best in town facilities are provided. Every employee is
covered on health care. If you are hospitalized in those hospitals in which they have tie up with, then the treatment cost is reimbursed
by the company up to 90% to avoid misuse. Unlimited coverage is given for self, spouse and children. There is no medical insurance
policy as such. Medical benefits are given in the form of treatment costs.

Leave Rules: Every employee is entitled to an Annual Paid leave of 24 days if it’s a 5-day working week and 24 days if it’s a 6-day
working week. If the Annual Leave is entitled to 24 days the person has to take a minimum of 12 days leave, while the remaining 12
days shall be carried forward to the next year. While granting Annual Leave, National Holidays and Weekends are not considered but
only the working days are considered. The Sick Leave Policy here is quite different which is not found in many companies. It is based
on a No Questions Asked Policy. It was formed on the basis of trust. The employee just needs to inform and that’s it. If the sick leave
is for more than 90 days then the higher authorities which in this case is the Corporate Management Committee (CMC) is informed
about.

Holidays: The Holiday List is prepared by the Indian Tobacco Division (ITD) every year which happens to be the main holiday list.
Depending on this every factory prepares its own holiday list. The Holiday List is sent across all the departments and its employees.

Salary Account: There’s no fixed bank account here. Wherever the employee has a bank account and he wishes his salary to be
credited, in that account his salary shall be credited on the 26th or latest by the 27th of every month.

Salary Computation: Salary or Rewards in ITC are given under which there are monetary and other benefits. Under monetary
benefits the employee is entitled to a Basic Pay, Supplementary Allowance and Bonus. In other words, there are three building
blocks here - fixed pay, short term incentive and long-term incentive. Under fixed pay you have your basic pay or the cash in hand, the
short-term incentive includes the annual payment bonus, the long-term incentive includes the Employee Stock Option Scheme

56
(ESOP). The ESOP is a unique scheme created by ITC to attract and retain best talent in an increasingly competitive business
environment. It’s an instrument to synergize the interest of employees with that of the shareholders by creating a common sense of
purpose in building sustainable shareholder value. The eligibility of issuance of stock option depends on the performance of the
company as well as the level and grade of its employees.

Working Hours: The ITC headquarters' which is situated in Kolkata follows a 5-day workweek I.e. Monday to Friday.
The official working hours is 8 but this may extend to 12 or more depending on the amount of work and responsibility.

No Child Labor and No Forced Labor Policy: ITC believes in a No child labor and no forced labor policy.

It is ITC’s policy-

 To ensure that no person below the age of 18 years is employed in the workplace.

 To prohibit the use of forced or compulsory labor at all its units.

 To ensure that no employee is made to work against his/her will or to work as bonded/forced labor, or subjected to corporal
punishment or coercion of any kind, related to work.

 To refrain from engaging with vendors and suppliers who resort to using child labor in their operations.

Whistleblower Policy (Employee Grievances): The "Whistleblower Policy" encourages Directors and employees (hereinafter
referred to as 'employees') to bring to the Company's attention, instances of unethical behavior, actual or suspected incidents of fraud,
actual or suspected instances of leak of unpublished price sensitive information (hereinafter referred to as 'UPSI'), or violation of the

57
ITC Code, that could adversely impact the Company's operations, business performance and/or reputation. The Company will
investigate such reported incidents in an impartial manner and take appropriate action to ensure that the requisite standards of
professional and ethical conduct are always upheld.

My internship has definitely helped me realize where my course might possibly take me. When I took up a post-graduation course in
HRM I wasn’t sure of why I was taking it up at the first place. In fact, even after completing a year I wasn’t sure but when I took up
this internship and started understanding what Human Resources actually mean I got the answer to my why. Just observing the
everyday events has taught me more about commitment and teamwork in ITC Ltd. April 26th was the day when I officially entered ITC
as an intern. Like any other intern I was confused and nervous at the same time but thanks to my guide who made sure I didn’t feel left
out.

I learnt about the various departments of the company, how people actually work, performance appraisal, training and development
and most importantly how recruitment and selection take place in the company. It was a new experience for me altogether to interact
with the employees. I understood the various policies and procedures of the company and how these policies are actually put into
practice.

It was my first exposure to professional work setting. I used to get some interesting assignments like writing articles, making
presentations etc. I got to know some new terms which I was completely unaware of like the gig economy, HR analytics to name a
few. I also learnt some very important excel functions like VLOOKUP, SUM, AVERAGE, ADDITION to name a few which can prove
to be really helpful when you have to work with some big data sets. I assisted my seniors in a few recruitments as well in which my
work included following up with the candidates, fixing up interviews as per the availability of the interviewers and so on. I also got
the opportunity to prepare a manpower requisition template during this internship, then I did some research on the recruitment process

58
of other FMCG companies like Godrej which helped me understand what recruitment is all about, then I tried to find out about the
FMCG industry of ITC and its competitors. I made a few presentations on how a recruiter adds value to an organization, what
financial mangers wish the non-financial staff understood, human resource planning, vroom’s expectancy theory, job evaluation,
porter’s five forces analysis of the FMCG sector of ITC. I also understood how ITC transformed from being a tobacco company to a
conglomerate which I think was really important to understand the kind of work ITC does. As a result, I got to know what I am
capable of and the areas I need to work on. It helped me to gain a lot of confidence.

59
 6.0 CONCLUSION
On a whole, this internship proved to be very useful for me in a number of ways. Given that I never worked in a corporate before,
through this internship training process my biggest takeaway was new found knowledge which is knowing how to connect your career
goals with your internship. It helps you to sharpen the skills that you already possess and, in this process, you also end up finding out
some new skills which you otherwise would not have found out. It's pretty obvious but when you successfully complete an internship
and you get that completion certificate in your hand you get something to flaunt about yourself in your CV. Apart from all this, when
you actually start working as an intern you realize that whatever was taught to you in all those lectures way back in college and what
you actually are being taught in the internship has a lot of difference. For this purpose, an internship is useful and at the same time a
necessity as well. Through this internship I was able to make myself more confident and was able to improve my communication
skills as well. All thanks to my guide and the people I have worked with during this program. The most important that I learnt was
until and unless you are getting feedback from those you are working with you don’t know the level of your performance and most
importantly don’t know where you are going wrong and whether you are doing the right thing.

60
 BIBLIOGRAPHY
https://www.investopedia.com/terms/f/fastmoving-consumer-goods-fmcg.asp
TIME: 4:20 P.M 29-05-2019
https://www.investopedia.com/terms/c/conglomerate.asp
TIME: 4:34 P.M 29-05-2019
https://www.fortuneindia.com/opinion/road-map-for-indian-conglomerates/102660
TIME: 10:00 A.M 03-06-2019
https://www.fortuneindia.com/opinion/road-map-for-indian-conglomerates/102660
TIME: 10:20 A.M 03-06-2019
https://www.itcportal.com/about-itc/leadership/business-heads.aspx
TIME: 1:00 P.M 03-06-2019
https://en.wikipedia.org/wiki/ITC_Limited
TIME: 2:10 P.M 03-06-2019
https://www.itcportal.com/about-itc/profile/index.aspx
TIME: 4:56 P.M 03-06-2019
https://www.slideshare.net/manoj03singh/itc-supply-chain-management
TIME: 12:24 A.M 14-06-2019

61
https://scroll.in/article/819750/conglomerate-edge-in-india-being-part-of-a-business-group-still-adds-value-to-a-company
TIME: 9:58 A.M 17-06-2019
https://home.kpmg/xx/en/home/insights/2016/05/conglomerates-insights-from-kpmg-2016-global-manufacturing-outlook.html
TIME: 12:59 P.M 17-06-2019
https://www.marketing91.com/swot-analysis-itc/
TIME: 12:02 P.M 20-06-2019
https://www.slideshare.net/RADHIKAGUPTA36/itc-policies
TIME: 12:05 P.M 21-06-2019
https://www.slideshare.net/__mitra90/itc-marketing-strategys
TIME: 11:00 A.M 21-06-2019
https://www.rediff.com/money/2001/jan/17itc.htm
TIME: 14:23 P.M 21-06-2019
https://www.slideshare.net/ManishSingh172/presentation1-32904995?qid=28be8c77-2d87-45e3-bf28-
e23064d008c1&v=&b=&from_search=2
TIME: 14:39 P.M 21-06-2019

62
63