Challenges Faced by H.R Manager in Present Scenario IN

Challenges faced by HR Manager in present scenario
Challenges faced by H.R Manager in present scenario
IN
BPL
Believe in the Best
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF MBA
DEGREE OF BANGALORE UNIVERSITY
By
Himanshu Joshi
Reg. No. 06XQCM6029
Under the Guidance of

Prof.Sumithra
(INTERNAL GUIDE)
M.P Birla Instt. of Management

Associate Bharatiya Vidya Bhavan
#43 Race Course Road, Bangalore-560001
2006-2008
M.P.Birla Institute of Management Page 1

DECLARATION
I hereby declare that the dissertation entitled “Challenges faced by H.R

Manager in 21st century in BPL, Bangalore” is the result of research work
undertaken by me under the guidance and supervision of Prof.Sumithra,
M.P.Birla Institute of Management, Bangalore.
I also declare that this dissertation has not been submitted to any
other University/Institution for the award of any Degree or Diploma.
Place: Bangalore Himanshu Joshi

Date: (06XQCM6029)

Certificate
I hereby certify that the research work embodied in this

dissertation entitled “Challenges faced by H.R Manager in
21st century in BPL,Bangalore”, has been undertaken and
completed by Mr. Himanshu Joshi under the guidance and
supervision of under my guidance and supervision
Place: Bangalore
Prof.Sumithra
Date: 15/06/2005
(Internal Guide)

Acknowledgement
I would like to express my gratitude to “BPL Limited”, organization as a whole which

gave me the opportunity to undergo my organization study for the fulfillment of my
academic career and also inculcating the sense of job prospective development in the
long term growth for the being an able entrepreneur.
My sincere regards and thanks to Mrs.Ranju, Senior H.R manager
BPL tower (Corporate office), under whose esteemed protégé and mentorship I carried
out the study. I also owe my tutelage, commitment & outcome of my internship to
Ms.Gunjan (HR), initiated, guided, assisted & provided me the necessary plethora of
knowledge for conducting the study.
I am indebted to my project guide, Prof Sumithra for her timely support and
valuable suggestion and feedback. Without her wealth of knowledge, and the
reassurance that she would be there for the guidance and support, I would not have
been able to gather the courage to embark on this journey into the unfamiliar world of
Human Resource
I also extend my appreciation, thankfulness to employees of B.P.L during the

organization study, which helped in getting valuable information, ideas & inaction from
the employees & executives working in their respective fields.
I thank Dr. Nagesh Malavalli, Principal M.P.Birla Institute of Management for

providing a congenial atmosphere to facilitate the completion of this research work.
Place: Bangalore
Date: (Himanshu Joshi)

CONTENTS
S.NO PARTICULARS Pg.No
EXECUTIVE SUMMARY 1
Chapters
1 Background of the Study 2

2 Review of Literature 4
3 Problem Statement, Research objectives, Research Limitations. 30
4 Research Methodology 31
5 Finding & Data analysis 32
6 Recommendations 50
7 Conclusion 53
8 Interview 54
9 Bibliography 57
ANNEXURE
Bibliography 55
Interview 56

EXECUTIVE SUMMARY
The main objective of the study is to provide an insight about the challenges faced by
the Human Resource manager in 21st century to make the Human Resource student
familiar about the various issues in the organization and what are the roadblocks which
come in the way of smooth functioning of any industry.
Human Resource play an important role in a phenomenal growth in all the

industry had in the last decade and is expected to play a much bigger role in the coming
years. This growth has been due to various measures adopted to bring together
employer and employee at the same platform and motive the employee to enhance the
skill and contribute more to the organization. This study sought to explore and examine
the HR issues and challenges in any industry. During the Research it was found that the
organizations are facing a number of HR issues such as difficulty in attracting the best
talent, high attrition rate and Knowledge management, different work culture existing in
any organization, Training and development, shortage of workforce, employees
suffering from Stress and work life balance. If the organization wants to ensure robust
growth and development it has to take initiatives such as more adequate rewards, flexi-
timings, continues training for up gradation of employees, growth opportunities for
employees and such other initiative to make employee closer and amalgamate one’s
individual goal with the organizational goal.
The company chosen was BPL. The reason behind this was to understand its
management process, the expertise it has developed and the skills it has owned.


Chapter 1
Background scenario
The role of the HR manager must parallel the needs of the changing
organization. Successful organizations are becoming more adaptable, resilient,
quick to change directions, and customer-centered. Within this environment, the
HR professional must learn how to manage effectively through planning,
organizing, leading and controlling the human resource and be knowledgeable of
emerging trends in training and employee development.

The role of the Human Resource Manager is evolving with the change in competitive
market environment and the realization that Human Resource Management must play a
more strategic role in the success of an organization. Organizations that do not put their
emphasis on attracting and retaining talents may find themselves in dire consequences,
as their competitors may be outplaying them in the strategic employment of their human
resources.
With the increase in competition, locally or globally, organizations must become more
adaptable, resilient, agile, and customer-focused to succeed. And within this change in
environment, the HR professional has to evolve to become a strategic partner, an
employee sponsor or advocate, and a change mentor within the organization. In order
to succeed, HR must be a business driven function with a thorough understanding of
the organization’s big picture and be able to influence key decisions and policies. In
general, the focus of today’s HR Manager is on strategic personnel retention and talents
development. HR professionals will be coaches, counselors, mentors, and succession
planners to help motivate organization’s members and their loyalty. The HR manager
will also promote and fight for values, ethics, beliefs, and spirituality within their
organizations, especially in the management of workplace diversity.
With the increase in competition, locally or globally, organizations must become more
adaptable, resilient, agile, and customer-focused to succeed. And within this change in
environment, the HR professional has to evolve to become a strategic partner, an
employee sponsor or advocate, and a change mentor within the organization. In order
to succeed, HR must be a business driven function with a thorough understanding of
the organization’s big picture and be able to influence key decisions and policies. In
general, the focus of today’s HR Manager is on strategic personnel retention and talents
development. HR professionals will be coaches, counselors, mentors, and succession
planners to help motivate organization’s members and their loyalty. The HR manager
will also promote and fight for values, ethics, beliefs, and spirituality within their
organizations, especially in the management of workplace diversity.
This study will highlight on how a HR manager can meet the challenges of workplace
diversity, how to motivate employees through gain-sharing and executive information
system through proper planning, organizing, leading and controlling their human
resources.

Chapter 2
Review of Literature

PURPOSE OF THE REVIEW OF LITERATURE

The purpose of the literature review is to identify the problem statement,
understand the secondary data that has been gathered in the field of study
and to make new finding on the problem statement.
Title: Employees stress and performance

Author: David lee
Creating a high performance organization requires understanding what factors

influence performance. One of the most significance factors Initiatives like the
Initiatives like the learning organization, process – is workplace stress. Initiatives
like the learning organization, process – reengineering, collaboration team work
Title: Developing Human Capital for Sustaining the Growth of Industry

Authors: Narendra M. Agarwal (IIM-Bangalore)
M.R.Rao(IIM-Bangalore)
The growth of any industry till date has been mainly due to the availability
of highly competent and cost competitive professional in India. The presence
of highly competent and cost competitive employee in various organizations,
central and state government, corporate central and state government,
corporate private training institutes etc and suggests further measure to be
taken by different agencies.
Articles by Forum Member

Retention of Key employees is critical to the long term health and success
of any organization. It is a known fact that retaining your best employees ensures
customer satisfaction, increased product sales, satisfied colleagues and reporting
staff, effective succession planning and deeply imbedded organizational
knowledge and learning. Employee retention matters as organizational issues
such as training time and investment; lost knowledge; insecure employees and a
HR to play a key role in the development and execution of the Business Strategy
of an Organization. It should evolve from a transactional support role to
partnering in the organization's business strategy.

Title: Performance management

Author: Frances Neale
Performance management helps organizations to strengthen their working

relationship with there staff and will be able to maximize there joint contribution to
the long term success of the company. This leads to a pattern of growth and
achievement, providing good results for the company and a rewarding and
satisfying life for the workers.
Title: When Teams Work Best

Author: Frank Lafasto, Carl Larson
Teams are there every where, in business and industry. The trouble is that that in
a real life, sometimes teams work effectively, but often they don’t. Clarity,
confidence and commitment can only encourage team work and help teams
function more effectively.
Title: Managing Employee Retention as a Strategy for Increasing

Organizational Competitiveness
Author: Sunil Ramlall
The author conducted the research at a large, complex organization using a

stratified random sample to select employees from all departments of the
organization and to include non-supervisory employees, mid-level management,
and senior management employees and came up with the following findings
Potential Factors that could cause the Employee to Leave the Company Salary,
lack of challenge and opportunities in one’s position, and the inability to advance
in one’s career were the most significant factors for people to leave the company.
Other factors identified by the respondents included lack of recognition,
ineffective leadership, and a work environment that lacked teamwork. Reward
and Recognition.
The three forms of recognition and reward most frequently cited by the
respondents were verbal praise from supervisor and other leaders,salary
increases and gift certificates.
CONCLUSION
The major conclusion of this study is, if given an option the employees would
leave the company because of low satisfaction level inter related with salary,
work culture and many more things

Title : MAJOR HR CHALLENGES IN THE IT INDUSTRY

Author : R.NELSON
Source : www.humanlinks.com
We are at the dawn of the next millennium. The challenges that we will face in
the next millennium can only be anticipated. But the direction that we will tread is
quite clear now.The IT boom has brought with it, its own set of challenges to
organisations. How to put in place systems and process that are in tune with the
IT revolution, how to strategise and compete in the IT era? etc.But a major
challenge that the IT industry per se has been facing is in the field of Human
Resource Management.
The IT industry is a service industry. How well are you able to offer quality
service to individuals and organisations will determine the success of your
organisation. This leads us to the fact that the creativity, innovativeness,
knowledge and skill of your employees are your important assets .How you are
able to manage these assets is the challenge that the IT industry is facing. It is
not capital or finance or marketing management that gives the competitive edge
but rather how well you are able to manage your human resources whose
intellectual applications drive your business.
Some of the HR challenges that the any industry faces are in Recruitment,
Performance Management, Attrition, Training & Development, Knowledge
Management
Title: Balancing Work and Family

Website: www.familiesandwork.org
Family life and work life take on new meanings once a baby is introduced into the
family. Schedules need to be rearranged and in all likelihood, the division of
household duties will come up for renegotiation more than once. Parenting
becomes a team effort. Achieving balance will mean different things to different
families.However, experts offer this advice on managing the dual responsibilities
of being a working mother.
Get in touch with your values. What do you want from life for you and your
family? How does work fit into this? Is work important for your sense of self, or is
it important primarily for financial reasons? Set priorities. Based on your values,
decide what is important to you. Be realistic .the mythical "superwoman," a
working mother excelling 100% on the job and 100% in caring for her family, is
just that – a myth.
For most of us, there is always more to do than time allows. Focus on what
you can do. Give up what’s not essential. Let a few things slide. If children and
work are your most important priorities, stop trying to maintain a "House
Beautiful" home. Develop a transition ritual. It can take time to shift gears from

work to family. Establish a ritual that helps to mark the end of the workday and
the beginning of family time. Use the commute home to listen to music or a book
on tape. When you get home, change clothes before cuddling with your baby, or
engaging with your toddler. Be consistent in these routines.
The ritual will automatically signal the end of one thing and the beginning of
another.Investigate your options. More than ever, businesses recognize the
value of being family-friendly. Your company may offer work options such as
flextime, telecommuting, compressed work weeks, or job sharing
arrangements. Check with your Human Resources department for
availability and details, or click to the article Family-Friendly Work.
Schedules: A Work/Family Balance Solution listed below in the Reference

Sources. It offers an excellent overview of the most common full-time and part-
time flexible work arrangements. Understanding the pros and cons of each will
help you decide if any are suitable for you and if so, how to approach your
immediate supervisor about them. Take care of your physical health. Healthy
people have stamina. They are better able to withstand emotional and physical
stress. Don’t neglect your health. Eat properly and get as much sleep as you can.
Find time to do the things that nourish your whole being.
Talk to other working mothers. Other working moms will gladly share with you
how they navigated the passage from working-before-baby to working-after-baby.
They will tell you what worked for them, what didn’t and how they found
alternative solutions. Learn about work and family. Read as much as possible on
work and family issues in magazines, newspapers and on the Internet, and look
for tips you can use. When using Internet search engines, use keywords and
phrases like – family, work and family, parenting, work family balance, career.
You’ll gain valuable information and find guidance on developing a plan that
works for you, your spouse and your child. Learn the impact that certain
stressors and influences have on work life and home life. It can help you gain a
different perspective on many of the issues and challenges you’ll face as a
working mother. Parenting at any stage requires a sense of humor and the ability
to juggle many tasks. Look at all the things going on in your family in a positive
light, have faith that there are ways to make a household run smoothly; and don’t
forget to ask for help when you really need it. Grandparents and extended family
are usually delighted to offer a helping hand. In all probability they’re tickled pink
to be able to spend time with your oh - so-cute baby or toddler.
Methodology
Reviews are acquired through websites as secondary data. Also with the help of
professors through interviews and lectures, data has been furnished. Various
publications are also included.

Conclusion
With the help of reviews it has been possible to relate work life balance with Job
stress and the early retirement. Also reviews have given a deep insight of how
employer can influence the lives of employees.
Managing Human Capital in recent scenario

Managing Human Capital in the 21st Century comprise a diverse and increasingly
knowledge-based workforce, with a broad spectrum of technical and program skills and
institutional memory. Agencies differ in size and mission, but they share a common
reliance on the energies and ingenuity of employees. These employees are the
government’s greatest asset—its human capital.
Reforms addressed most of the essential—and mutually dependent—elements of
the modern performance management model: financial management, information
technology management, and results-oriented goal-setting and performance
measurement.
The transformation that these reforms entail will not be an easy one and will require
a wide investment of time and resources that should not be underestimated. However,
the return on this investment is potentially very great. These reforms, with their focus on
accountable, results-oriented management, will allow going beyond attempts merely to
identify or prevent incidents of waste, fraud, or abuse and, instead, create better
equipped to deliver efficiently, economically, and effectively on its promises. There will
always be zero-tolerance for waste, fraud, and abuse, but the cost of these occurrences
is small compared with the larger costs—not just in money. Once results-oriented
performance management systems are effectively implemented, agencies will have the
means to demonstrate the real-world effects of their efforts,
As the performance management framework has evolved over the last decade,
human capital management has emerged as the missing link. For the performance
management principles embodied in the new reforms to produce a more businesslike
and results-oriented organization system.
For performance management to succeed, three enablers will be needed:
People, Process, and Technology. All three are important, but the people
dimension is the most crucial.
We need to ensure that they have the right people on board to manage the cost and
ensure the quality of the activities that have been outsourced. The short- and long-term
implications of downsizing for the human capital will require continuing attention.
Reviews have found, for example, that a lack of adequate strategic and workforce
planning during the initial rounds of downsizing by some agencies may have affected
their ability to achieve organizational missions.2 some agencies reported that

downsizing in general led to such negative effects as a loss of institutional memory and
an increase in work backlogs. Although we found that agencies’ planning for downsizing
improved as their downsizing efforts continued, it is by no means clear that the current
Workforce is adequately balanced to properly execute missions of neither today, nor
that adequate plans are in place to ensure the appropriate balance in the future.
It is intended to work on the implications of downsizing, but our view today is
that the widespread lack of attention to strategic human capital management may be
creating a fundamental weakness in management, possibly even putting at risk the
ability to efficiently, economically, and effectively deliver products and services in the
future.
Three points should be taken:
• Employees should be viewed not as costs to be cut but as assets to

be appreciated.
• Strategic human capital management recognizes that employees are a critical

asset for success.
• An organization’s human capital policies and practices must be designed,
implemented and assessed by the standard of how well they support the
organization’s mission and goals.
Two principles those are critical in a performance management environment. First,

people are assets whose value can be enhanced through investment. As the value of
people increases, so does the performance capacity of the organization, and therefore
its value to clients and other stakeholders. As with any investment, the goal is to
maximize value while managing risk. Second, an organization’s human capital
approaches must be aligned to support the mission, vision for the future, core values,
goals, and strategies by which the organization has defined its direction and its
expectations for itself and its people. An organization’s human capital policies and
practices should be designed, implemented, and assessed by the standard of how well
they help the organization pursue these intents and achieve related results.
The term “human capital” originated in the field of economics. But both words,
“human” and “capital,” are equally important to the concept as we apply it. Enhancing
the value of employees is a win-win goal for employers and employees alike. The more
an organization recognizes the intrinsic value of each employee, the more it recognizes
that this value can be enhanced with nurturing and investment, the more it recognizes
that employees vary in their talents and motivations and that a variety of incentive
strategies and working arrangements can be created to enhance each employee’s
contributions to organizational performance, the more likely the organization will be to
appreciate the diversity of employee needs and circumstances and to act in ways that
make sense in both business and human terms.

Human Capital Principles we identified

(1) Employees must be recognized as crucial to organizational success and their role
considered through all stages of strategic planning and day-to-day business
management
(2) Organizations need to identify the skills and other characteristics needed among
leaders and all other employees—to help achieve success, and make the appropriate
investments to hire, develop, and retain people to ensure that these competencies are
sustained
(3) Organizations need to nurture an organizational culture that stresses results,
accountability, teamwork, and employee involvement and empowerment so that
employees will work together to achieve high performance.
BPL formulated ---

Ten Underlying and Interrelated Principles of Human Capital Management
1. Treat human capital management as being fundamental to strategic

business management. Integrate human capital .Consideration when
identifying the mission, strategic goals, and core values of the organization
as well as when designing and implementing operational policies and
practices.
2. Integrate human capital functional staff into management teams:
Include human capital leaders as full members of the top management team rather
than isolating them to provide after-the-fact support. Expand the strategic role of human
capital staff beyond that of providing traditional personnel administration services.
3. Leverage the internal human capital function with external expertise.
Supplement internal human capital staff’s knowledge and skills by seeking outside
expertise from consultants, professional associations, and other organizations, as
needed.
4. Hire, develop, and sustain leaders according to leadership characteristics
identified as essential to achieving specific mission
Identify the leadership traits needed to achieve high performance of mission and
goals, and build and sustain the organization’s pool of leaders through recruiting, hiring,
development, retention, and succession policies and practices targeted at producing
leaders with the identified characteristics.

5. Communicate a shared vision that all employees, working as one team, can
strive to accomplish. Promote a common understanding of the mission, strategic
goals, and core values that all employees are directed to work as a team to achieve.
Create a line-of-sight between individual contributions and the organization’s
performance and results.
6. Hire, develop, and retain employees according to competencies.
Identify the competencies—knowledge, skills, abilities, and behavior needed to achieve
high performance of mission and goals, and build and sustain the organization’s talent
pool through recruiting, hiring, development, and retention policies and practices
targeted at building and sustaining those competencies.
7. Use performance management systems, including pay and other meaningful
incentives, to link performance to results.
Provide incentives and hold employees accountable for contributing to the
achievement of mission and goals. Reward those employees who meet or exceed
clearly defined and transparent standards of high performance.
8. Support and reward teams to achieve high performance.
Foster a culture in which individuals interact and support and learn from each other as a
means of contributing to the high performance of their peers, units and the organization
as a whole. Bring together the right people with the right competencies to achieve high
performance as a result, rather than in spite, of the organizational structure.
9. Integrate employee input into the design and implementation of human capital
policies and practices.
Incorporate the first-hand knowledge and insights of employees and employee
groups to develop responsive human capital policies and practices. Empower
employees by making them stakeholders in the development of solutions and new
methods of promoting and achieving high performance of organizational missions and
goals.
10. Measure the effectiveness of human capital policies and practices.
Evaluate and make fact-based decisions on whether human capital policies and
practices support high performance of mission and goals. Identify the performance
return on human capital investments.

Knowledge Management
Employees are the main asset of an organization they possess a wealth of expertise,
ideas and talent insight into the business operation. Most employees don’t share this
knowledge with their colleagues and peers due to various other reasons.
Why knowledge management?
It is defined by Anderson consulting as “the systematic process of acquiring, creating,
capturing, sanitizing, learning and using information insight and experiences to enable
performance. It is the engine that transforms idea into business value.
Return from knowledge management
• Reducing the cost and time spent on information collection, disseminating and
reuse.
• Improving the customer/vendor services and support process.
• Identifying innovative business/revenue generating activity and opportunity.
• Shrinking cycle time for market/product development.
• Stemming intellectual losses linked to employee turnover.
Capturing knowledge and creating knowledge culture.

It involves encouraging the sharing of lesson learned from experience and focusing
business development effort on network sharing. Capturing the knowledge goes beyond
the basic hygiene of improving the current process. It involves supporting and creating
new process. Usually success is attributed to those who have the most information.
Now manager are encouraging the sharing of knowledge so that other can excel also.
Managing knowledge and business process:
The knowledge coordinator is responsible for creating and sustaining a knowledge
culture and organization. He is also responsible for the design and the choice of a
knowledge repository. The knowledge repository will serve as a warehouse of corporate
resource and integrate with organizational infrastructure
Strategies for the knowledge management:
• “The corporate learning center” on the web.

• Knowledge strategy as business strategy focus.
• Intellectual asset management strategy focus.
• Personal knowledge asset responsibility focus.
• Knowledge creation and transfer strategy focus.

Performance Appraisal
Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is
measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources,
“performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his potential for a
better job." Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future.
By focusing the attention on performance, performance appraisal goes to the heart of
personnel management and reflects the management’s interest in the progress of the
employees.
OBJECTIVES OF PERFORMANCE APPRAISAL:
• To review the performance of the employees over a given period of time.
• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.
• To provide feedback to the employees regarding their past performance.
• Provide information to assist in the other personal decisions in the organization.
• Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.
• To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.
• To reduce the grievances of the employees.

Challenges of Performance Appraisal:

In order to make a performance appraisal system effective and successful, an
organization comes across various challenges and problems. The main challenges
involved in the performance appraisal process are:
• Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced by the
top management. The performance data to be considered for evaluation should
be carefully selected. For the purpose of evaluation, the criteria selected should
be in quantifiable or measurable terms
• Create a rating instrument

The purpose of the performance appraisal process is to judge the performance of
the employees rather than the employee. The focus of the system should be on
the development of the employees of the organization
• Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one
trait influencing the evaluator’s rating for all other traits) etc. may creep in the
appraisal process. Therefore the rater should exercise objectivity and fairness in
evaluating and rating the performance of the employees.
• Resistance
The appraisal process may face resistance from the employees and the trade
unions for the fear of negative ratings. Therefore, the employees should be
communicated and clearly explained the purpose as well the process of
appraisal. The standards should be clearly communicated and every employee
should be made aware that what exactly is expected from him/her.
Essential of an effective Performance Appraisal System:
Documentation – means continuous noting and documenting the performance. It
also helps the evaluators to give a proof and the basis of their ratings.
Standards / Goals – the standards set should be clear, easy to understand,

achievable, motivating, time bound and measurable.
Practical and simple format - The appraisal format should be simple, clear, fair and
objective. Long and complicated formats are time consuming, difficult to understand,
and do not elicit much useful information.
Evaluation technique – An appropriate evaluation technique should be selected; the
appraisal system should be performance based and uniform. The criteria for evaluation
should be based on observable and measurable characteristics of the behavior of the
employee.

Communication – Communication is an indispensable part of the performance

appraisal process. The desired behavior or the expected results should be
communicated to the employees as well as the evaluators. Communication also plays
an important role in the review or feedback meeting. Open communication system
motivates the employees to actively participate in the appraisal process.
Feedback – The purpose of the feedback should be developmental rather than
judgmental. To maintain its utility, timely feedback should be provided to the employees
and the manner of giving feedback should be such that it should have a motivating
effect on the employees’ future performance.
Personal Bias – Interpersonal relationships can influence the evaluation and the
decisions in the performance appraisal process. Therefore, the evaluators should be
trained to carry out the processes of appraisals without personal bias and effectively.
Purpose of Performance Appraisal:
CURRENT TREND IN BPL PERFORMANCE APPRAISAL PROGRAM:

The performance appraisal process has become the heart of the human resource
management system in the organizations. Performance appraisal defines and measures
the performance of the employees and the organization as a whole. It is a tool for
accessing the performance of the organization.

The emergence of following concepts and the following trends related to

performance appraisal can be seen in the global scenario:
• 360 Degree Appraisal

360 degree feedback, also known as 'multi-rater feedback', is the most
comprehensive appraisal where the feedback about the employees’ performance
comes from all the sources that come in contact with the employee on his job.
Organisations are increasingly using feedback from various sources such as
peer input, customer feedback, and input from superiors. Different forms with
different formats are being used to obtain the information regarding the employee
performance.
Training and Development
What is Training?
Training is the act of increasing the knowledge of an employee for doing a particular
job. -Edwin B Flippo
Training is process of learning a sequence of programmed behavior. It is the application

of knowledge. It gives people an awareness of the rules and procedures to guide their
behaviors. It attempts to improve their performance on the current job and prepares
them for an intended job.
What is Development?
Development is a related process. It covers not only those activities which improve job
performance but also those which bring about growth of the personality. Training a
person for a bigger and higher job is development, this process includes not only
imparting skills but also certain mental and personality attributes.
Why Training is needed?

¾ To increase Productivity
¾ To improve Quality
¾ To help the company to fulfill its Goals & Future Needs
¾ To improve Organizational Climate
¾ Obsolescence Prevention
¾ Personal Growth
The identification of training needs is primarily based on the skills that are required to
perform the organization's set of standard processes. Certain skills may be effectively
and efficiently imparted through vehicles other than in-class training experiences (e.g.,
informal mentoring). Other skills require more formalized training vehicles, such as in a
classroom, by Web-based training, through guided self study or via a formalized on-the
job training program. The formal or informal training vehicles employed for each
situation should be based on an assessment of the need for training and the
performance gap to be addressed. Success in training can be measured in terms of the
availability of opportunities to acquire the skills and knowledge needed to perform new
and ongoing enterprise activities. Skills and knowledge may be technical, organizational
or contextual. Technical skills pertain to the ability to use the equipment, tools,
materials, data and processes required by a project or process. Organizational skills
pertain to behavior within and according to the employee's organization structure, role
and responsibilities and general operating principles and methods. Contextual skills are
the self-management, communication and interpersonal abilities needed to successfully
perform in the organizational and social context of the project and support groups.
Training and the Workplace

Most training takes place in an organizational setting, typically in support of skill and
knowledge requirements originating in the workplace. We can identify five basic points
at which we might take measurements, conduct assessments or reach judgments.
These five points are:
1. before Training
2. during Training
3. after Training or Before Entry (Reentry)
4. in the Workplace
5. upon Exiting the Workplace
Training Purpose
As a management tool, training serves many masters and many purposes. The
purposes for or uses of training are given in the list below. The evaluation of training
might vary with the purpose or use of the training itself.
1. Focusing energy on issues.
2. Making work and issues visible.
3. Supporting other interventions.
4. Legitimizing issues.
5. Promoting change.
6. Reducing risk.
7. Creating a community based on some shared experience.

8. Building teams.
9. Indoctrinating new staff.
10. Communicating and disseminating knowledge and information.
11. Certifying and licensing.
12. Rewarding past performance.
13. Flagging "fast trackers."
14. Developing skills.
Given the diverse array of purposes listed above, it seems reasonable to conclude that
the results sought from the training would also be diverse.
With more emphasis on return on investment, companies are asking: what is the
value of training? Too often, training departments have little or no idea how their
training relates to the business objectives of the company. This could be due partially to
trainers' lack of measurement and evaluation skills, which result in measurements that
are not valid, reliable or even useful to the management of the company.The training
department that measures increase in the number of students is in trouble. A training
department that is concerned only with counting the number of students in seats
probably isn't measuring whether the students learned anything or whether the skills
they learned are helping them to perform their jobs more efficiently. Most important is to
note the attitude that the students comes in with to undergo the training program.
Recruitment
Recruitment is an important part of an organization’s human resource planning and their
competitive strength. Competent human resources at the right positions in the
organization are a vital resource and can be a core competency or a strategic
advantage for it.
The objective of the recruitment process is to obtain the number and quality of
employees that can be selected in order to help the organization to achieve its goals
and objectives. With the same objective, recruitment helps to create a pool of
prospective employees for the organization so that the management can select the right
candidate for the right job from this pool. Recruitment acts as a link between the
employers and the job seekers and ensures the placement of right candidate at the right
place at the right time. Using and following the right recruitment processes can facilitate
the selection of the best candidates for the organization.

Purpose and Importance of Recruitment:

Attract and encourage more and more candidates to apply in the organization.
Create a talent pool of candidates to enable the selection of best candidates for the
organization.
Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
Recruitment is the process which links the employers with the employees.
Increase the pool of job candidates at minimum cost.

Help increase the success rate of selection process by decreasing number of visibly
under qualified or overqualified job applicants.
Help reduce the probability that job applicants once recruited and selected will leave
the organization only after a short period of time.
Meet the organizations legal and social obligations regarding the composition of its
workforce.
Begin identifying and preparing potential job applicants who will be appropriate
candidates.
Factors affecting Recruitment:
Factors affecting Recruitment

Recruitment policy of BPL:

In today’s rapidly changing business environment, a well defined recruitment policy is
necessary for organizations to respond to its human resource requirements in time.
Therefore, it is important to have a clear and concise recruitment policy in place, which
can be executed effectively to recruit the best talent pool for the selection of the right
candidate at the right place quickly. Creating a suitable recruitment policy is the first
step in the efficient hiring process. A clear and concise recruitment policy helps ensure
a sound recruitment process.
FACTORS THAT AFFECT RECRUITMENT POLICY OF BPL:
• Organizational objectives
• Personnel policies of the organization and its competitors.
• Government policies.
• Sources of recruitment.
• Need of the organization.
• Recruitment costs and financial implications
Recent trends in Recruit:

The following trends are being seen in recruitment:
OUTSOURCING
In India, the HR processes are being outsourced from more than a decade now. A
company may draw required personnel from outsourcing firms. The outsourcing firms
help the organization by the initial screening of the candidates according to the needs of
the organization and creating a suitable pool of talent for the final selection by the
organization. Outsourcing firms develop their human resource pool by employing people
for them and make available personnel to various companies as per their needs. In turn,
the outsourcing firms or the intermediaries charge the organizations for their services.
POACHING/RAIDING
“Buying talent” (rather than developing it) is the latest mantra being followed by the
organizations today. Poaching means employing a competent and experienced person
already working with another reputed company in the same or different industry; the
organization might be a competitor in the industry. A company can attract talent from
another firm by offering attractive pay packages and other terms and conditions, better
than the current employer of the candidate. But it is seen as an unethical practice and
not openly talked about. Indian software and the retail sector are the sectors facing the
most severe brunt of poaching today. It has become a challenge for human resource
managers to face and tackle poaching, as it weakens the competitive strength of the
firm.
E-RECRUITMENT
Many big organizations use Internet as a source of recruitment. E- recruitment is the
use of technology to assist the recruitment process. They advertise job vacancies
through worldwide web. The job seekers send their applications or curriculum vitae i.e.
CV through e mail using the Internet. Alternatively job seekers place their CV’s in
worldwide web, which can be drawn by prospective employees depending upon their
requirements.
Workforce diversity
Demographic Differences
India's workforce is preponderantly young. Large numbers are entering the professional
workforce at a time of rapid economic expansion that provides increased opportunity for
the well qualified and well connected. However, access to professional education,
socialization, and entry and career advancement is still disproportionately concentrated
among social groups that have traditionally dominated the professional fields. Despite
its much strength, the educational system doesn't provide sufficient trained talent for the
job market. This puts special pressures on employers in India around finding, competing
for, holding and cultivating the skilled employees they need.
How Diversity Is Defined
In India, the main diversity categories are gender, religion, place of birth (ethno-linguistic
region) and, for Hindus, caste – specifically, whether individuals belong to one of the
traditionally dominant "Forward Castes," one of the traditionally excluded "Scheduled
Castes" or "Scheduled Tribes," or the large "Other Backward Castes" grouping.
Generally speaking, the term “Workforce Diversity” refers to policies and practices
that seek to include people within a workforce who are considered to be, in some way,
different from those in the prevailing constituency. In this context, here is a quick
overview of seven predominant factors that motivate companies, large and small, to
diversify their workforces.

DIVERSITY WORLD BELIEFS
• Everyone deserves the opportunity to participate fully within our economic

communities.
• Workplaces are enriched by the diversity of their workforces.
• People should be valued for their differences - not in spite of them.
WHAT IS WORKFORCE DIVERSITY?
Workforce Diversity is an immense and complex topic - from what drives companies to
be more inclusive - to the programs, policies and practices that are needed to make that
happen effectively. We put together a brief overview that outlines some of the basic
factors behind it.
Benefits:
• Managing diversity create competitive advantage for the organization and better
decision making, higher creativity and innovation, greater success in marketing in
foreign and domestic markets, minority communication and a better allotment of
economic opportunity.
• Diverse workforce provides superior service to the customer as it understands
their need.
• Workforce diversity addresses employee concern such as favoritism in the
working situation which help protecting human rights.
• It improve an organizational human capital which lead to a wider range of ideas
and abilities, offering greater scope for innovation and competitive performance
in the future thus enriches organizational human capital.
How to manage a diverse workforce in organization
• By connecting the pursuits for the diversity to human resource management

decision like recruitment, selection, placement, succession planning,
performance management and rewards.
• Creation of advanced work environment helps in increasing in the level of
motivation, satisfaction and commitment among diverse people.
• Performance feedback helps in clearly assessing the established performance
standards to identify desirable and undesirable behaviors of the individuals.
• Manager must understand their firm’s culture first and then implement diversity
strategies accordingly.
• Training and development programs improve the skills in dealing with the day to
day diversity dilemmas and help the manager to be aware of perception of
individual and the expectation.

• Assessment of employee’s beliefs related to workforce enables to identify work

values enable to identify work values of employee of different culture background
and examination of the leadership assumption from the multicultural perspective.
Culture
People
Orientation
Compensation
Active
Change Develop the Participation
Management
Employer
Customer
Quality Brand
Focus
Support
Attrition
It's a fact that it's people that add value to organizations. It's also a fact that humans
are a restless species who, unlike the immovable Banyan Tree, cannot stay rooted
in one place. People need to move on for one reason or another and the
organisation stands to lose. Every time. Attrition is inevitable but a high rate of
employee turnover spells `Unproductivity' in capitals. If a company gets associated
with the Here today, gone tomorrow syndrome, it will be inferred that there is
something wrong with itself and not with those ships that have passed in the night!
Agony of Attrition
Apart from causing the company a monetary loss and breaks in their day-to-day
operations, attrition contributes to knowledge transfer, which is a loss that is horrific
and adversely affects business. In the war for talent, the company suffers many

casualties and requires focused strategy to keep workers on the job. Why
employees are jumping the ship is a matter for concern - is something wrong with
the ship, the captain or the weather?
Attacking Attrition
To deal with employee turnover, the first step is to find out what's making them leave
and what can be done to stop them from leaving.
Money matters: Could it be the pay? Maybe the organisation did not follow up on the
promised appraisal and salary hike. Maybe it's time to raise the bar for the green-
circled employee and win his loyalty. Maybe it's time to lay on the perks.
Pressure levels: Too much or too little to do? Some employees just can't take the
pressure. Others leave because they are underused. Match performance
expectations with ability. Create opportunities for those who can scale up but avoid
overloading the scales.
Growing pains: What are the growth prospects you offer? Make sure that the
employees are learning and building experience. They should have the experience
of adding to their skills through work, training and responsibilities.
Ego massage: Self- esteem is a big key and HR should focus on giving credit to
achievers. Employees feel they are valued and build organizational loyalty. Have in-
house counseling and workshops on soft skills to increase effective communication
and build self-awareness.
The battle against attrition should start from every employee's first day of work.
A wise company could begin with a flower in a soda bottle as a welcome and carry it
forward with performance appraisals, mentoring programmes, counseling, smart
training and appropriate incentives and rewards. It's all about instilling a sense of
loyalty and drive in employees to keep them on the job.
IF CALCULATING IN MONETARY TERMS, IT INCLUDES THE FOLLOWING:
Costs Due to a Person Leaving
• Calculate the cost of the person(s) who fills in while the position is vacant.
Calculate the cost of lost productivity at a minimum of 50% of the person's
compensation and benefits cost for each week the position is vacant, even if
there are people performing the work. Calculate the lost productivity at 100% if
the position is completely vacant for any period of time.
• Calculate the cost of conducting an exit interview to include the time of the
person conducting the interview, the time of the person leaving, the
administrative costs of stopping payroll, benefit deductions, benefit enrollments.
• Calculate the cost of the manager who has to understand what work remains,
and how to cover that work until a replacement is found.
• Calculate the cost of training your company has invested in this employee who is
leaving.
• Calculate the impact on departmental productivity because the person is leaving.
Who will pick up the work, whose work will suffer, what departmental deadlines
will not be met or delivered late.
• Calculate the cost of lost knowledge, skills and contacts that the person who is
leaving is taking with them out of your door. Use a formula of 50% of the person's
annual salary for one year of service, increasing each year of service by 10%.
• Subtract the cost of the person who is leaving for the amount of time the position
is vacant.
Recruitment Costs
• The cost of advertisements; agency costs; employee referral costs; internet

posting costs.
• The cost of the internal recruiter's time to understand the position requirements,
develop and implement a sourcing strategy, review candidates’ backgrounds,
prepare for interviews, conduct interviews, prepare candidate assessments,
conduct reference checks, make the employment offer and notify unsuccessful
candidates. This can range from a minimum of 30 hours to over 100 hours per
position.
• Calculate the cost of the various candidate pre-employment tests to help assess
a candidate' skills, abilities, aptitude, attitude, values and behaviors.
Training Costs
• Calculate the cost of orientation in terms of the new person's salary and the cost
of the person who conducts the orientation. Also include the cost of orientation
materials.
• Calculate the cost of departmental training as the actual development and
delivery cost plus the cost of the salary of the new employee. Note that the cost
will be significantly higher for some positions such as sales representatives and
call center agents who require 4 - 6 weeks or more of classroom training.
• Calculate the cost of the person(s) who conduct the training.
• Calculate the cost of various training materials needed including company or
product manuals, computer or other technology equipment used in the delivery of
training.

Lost Productivity Costs
As the new employee is learning the new job, the company policies and practices,
etc. they are not fully productive. Use the following guidelines to calculate the cost of
this lost productivity:
• Upon completion of whatever training is provided, the employee is contributing at

a 25% productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the
new employees’ full salary during that time period.
• During weeks 5 - 12, the employee is contributing at a 50% productivity level.
The cost is therefore 50% of full salary during that time period.
• During weeks 13 - 20, the employee is contributing at a 75% productivity level.
The cost is therefore 25% of full salary during that time period.
• Calculate the cost of mistakes the new employee makes during this elongated
indoctrination period.
Conclusion: It is clear that there are massive costs associated with attrition or
turnover and, while some of these are not visible to the management reporting or
budget system, they are none the less real. The 'rule of thumb' appears to be very
inaccurate indeed and, while it depends upon the category of staff, it is probably
better to estimate around 80% of salary as a truer rule of thumb - and this will be on
What makes Employee leave?
Employees do not leave an organization without any significant reason. There are
certain circumstances that lead to their leaving the organization. The most common
reasons can be:
Job is not what the employee expected to be: Sometimes the job responsibilities
don’t come out to be same as expected by the candidates. Unexpected job
responsibilities lead to job dissatisfaction.
Job and person mismatch: A candidate may be fit to do a certain type of job which
matches his personality. If he is given a job which mismatches his personality, then he
won’t be able to perform it well and will try to find out reasons to leave the job.
No growth opportunities: No or less learning and growth opportunities in the current
job will make candidate’s job and career stagnant.
Lack of appreciation: If the work is not appreciated by the supervisor, the employee
feels de-motivated and loses interest in job.
Lack of trust and support in coworkers, seniors and management: Trust is the
most important factor that is required for an individual to stay in the job. Non-supportive
coworkers, seniors and management can make office environment unfriendly and
difficult to work in.
Stress from overwork and work life imbalance: Job stress can lead to work life
imbalance which ultimately many times lead to employee leaving the organization.
Compensation: Better compensation packages being offered by other companies may

attract employees towards themselves.
New job offer: An attractive job offer which an employee thinks is good for him with
respect to job responsibility, compensation, growth and learning etc. can lead an
employee to leave the organization.
How to retain employee?
Companies have now realized the importance of retaining their quality workforce.
Retaining quality performers contributes to productivity of the organization and
increases morale among employees.
Four basic factors that play an important role in increasing employee retention include
salary and remuneration, providing recognition, benefits and opportunities for individual
growth. But are they really positively contributing to the retention rates of a company?
Basic salary, these days, hardly reduces turnover. Today, employees look beyond the
money factor

Key driver to retain talent:
Employers Key Drives To Attract And Retain Talent
o Early responsibilities in career

o Flexible and transparent organizational culture
Procter and Gamble
o Global opportunities through a variety of exposure and
India diverse experiences
o Performance Recognition
o Strong global brand

American Express
o Value-based environment
(India) o Pioneer in many people practices
o Learning and growth opportunities

o Competitive rewards
NTPC o Opportunity to grow, learn and implement
o Strong social security and employee welfare
performance- oriented culture
o Strong values of trust, caring fairness, and respect within

the organization
o Freedom to operate at work
o Early responsibility in career
BPL o Training and learning opportunities
o Visible, transparent and accessible leaders
o Competitive rewards
o Innovative HR programs and practices
o Company’s brand as an employer

o Early opportunities for growth
Wipro o High degree of autonomy
o Value compatibility
o Innovative people program
o Company brand image

o Work ethics
Indian Oil
o Learning and growth opportunities
Corporation o Challenging work assignments
o Growing organization

Chapter 3
Problem statement, Research Objective and Research Limitations
Problem Statement:
To identify various human resources issues and challenges in the organization.
Research Objectives:
This study is positioned as an exploratory study to understand humanissues and
challenges in Indian Software Organizations. Specifically, the study will focus on
following specific objectives:
¾ To find what are the human resource problems experienced by the
top management in software organizations.
¾ What are the factors that affect software professional’s

professional performance and contributions.
¾ To find the factors that inspires and motivates software

professionals
Research Limitations
This study suffers from the following limitations:
¾ The research is limited to Bangalore
¾ Since the period of the study is limited, the researcher could not
make an in-depth study
¾ The research is based on the response of the employees

Chapter 4
Methodology
Type of research
This study is positioned as an exploratory study.
Sampling techniques
Random sampling has been used for the purpose of the study so that the sample could
be split into different groups based on the convenience of the researcher.
Sample size
Large, medium and small organizations might have different types of human issues and
challenges .Hence, the study has covered total of 2 organization (total 50 employees)
consisting of I.T & Manufacturing organization.
Sample procedure
Sample have been selected using random sampling method
Contact method
In-depth interview
Statistical tools used for analysis
Percentage Analysis
Percentage analysis refers to a specific kind of ratio used in making the comparison
between two or more series of data. Percentage is used to describe relationship and
can also be used to compare the relative terms, the distribution of two or more series in
data
Percentage of respondent= (no. of respondent/total no. of respondent)*100

Chapter 5
Finding & Analysis
1. Are you aware of the Performance Appraisal System followed in your
organization?
S.No Number Percentage

Yes 36 72
No 14 28
Interpretation:
It can be noticed from the above graph that 72% of the sample are
aware of the performance appraisal followed in their organization, 28% who are not
aware the reason can be attributed towards new entry, lower level employee who do not
actively participate in performance appraisal. When so many people are aware about it,
it can be said that it has a major role to play in any organization.
2. How satisfied are you with the present Performance Appraisal system?
LEVEL OF SATISFACTION No Percentage

Fully satisfied 20 40
Partially satisfied 22 44
Not satisfied at all 8 16
TOTAL 50 100
Percentage of employeessatisfied with performance appraisal

system.
Fully Satisfied
Partially Satisfied
M.P.Birla Institute of Management Not Satisfied Page 38

Interpretation:
It can be noticed from the graph above that maximum percentage of

people covered in the study are either fully satisfied or partially satisfied with appraisal
system followed in their organization. 16% people are not satisfied which can be
attributed to poor appraisal system followed or lack of transparency in the appraisal
system.
3. Does the management spend considerable amount of time and attention on

P.A.Process?
Considerable time 26 52
Not much of time 16 32
Don’t know 8 16
Interpretation:
It is the response of the employees of any organization and from it, it can
be ascertained that how important is the PA system in their organization, 52% say that
considerable time is spent, 32% say that not much time is spent and 16% say that they
don’t know about it. It can be seen that good amount of organization spent their
considerable time on this performance appraisal clearly showing how performance
management is important for any organization.

4. Are you aware of the different traits / attributes according to which you are rated?
Yes 36 72
No 14 28
Interpretation:
It can be noticed that major portion of the population in the study are
aware of the attributes on which their appraisal is done, which indicates the importance
of the PA system in any organization, but some organization are their who do not give it
great weight as in general, these organizations are the one which lack the power and
are successful enough which lack in transparency which accounts for this no section in
the question.
5. The traits/attributes contained in the performance appraisal system are sufficient?
Sufficient 14 28
Not sufficient many more 36 72
should be added

Interpretation:
Majority of people are not very much satisfied with attributes / traits
included in PA in system followed by their organization. Some people say it is not
sufficient (72%)which can be attributed to their level in the organization. As there is a lot
of demand for the traits to be included it can be said that it considered to be of vital
importance for the employees.
6. The performance appraisal system helps in
Promotions 15 30
Salary 17 34
Retention/termination 6 12
Recognition of individual’s 12 24
performance
Interpretation:
Performance Appraisal system helps in all the important matters related to

job so no doubt that it has a great deal of value. It helps in mostly salary aspects,
promotion and recognition for employees and in the context of the employer it helps

decision regarding termination, so it is of great use. Major chunk goes for recognition
which have been rated most highly by most of the employees (24%)
7. The performance standards set are clear and achievable?
PERFORMANCE STANDARDS Number Percentage

Strongly agree 8 16
Agree 18 36
Disagree 15 30
Strongly disagree 9 18
Total 50 100
Interpretation:
It can be seen from the above graph the mix of clarity in performance
standards as perceived by the employees in different organization. The differences can
be attributed to different nature of jobs to be done in different departments. Performance
standards are different for each level and each type of job as each cannot be measured
in same scale.
8. Is it essential to provide training to the appraiser to develop his skills to carry

appraisal programme?
TRAINING NEEDS FOR Number Percentage

APPRAISERS
Yes, it is essential 32 64
Sometimes essential 17 34
No, it is not essential 1 2
TOTAL 50 100

Interpretation:
As what is clearly evident that thirty respondents clearly advocated for training
need in an organization and seventeen believe that sometime training comes into play
clearly show the importance of training.
9.What are the effectiveness of training program in making an employee confident in

terms of Managerial and other skills?
EFFECTIVENESS OF Number Percentage

TRAINING PROGRAMME
Yes 35 70
No 15 30
TOTAL 50 100
Interpretation:

Thirty Five out of fifty respondents believed that there is an effectiveness of training in
an organization. Hence training plays an important role in morale and development of
an employee.
10. How many training & development sessions offered are by your organization during
the past year?
Number Percentage
None 8 16
1-2 36 72
3 and above 6 12
Interpretation:
Major section of respondent said that there were at the average of one training
session in a year clearly showing the lack of understanding of training need by the top
management and therefore resulting into unrest in an organization.
11. Do you think it has imparted you with any benefits in your work?
Beneficial Number Percentage

Yes 38 76
No 12 24
TOTAL 50 100

Interpretation:
Yes most of the respondent believed that training have enhance their skill set to perform
in their work more effectively, thirty six respondent have voted for Yes as compared to
twelve as No. Hence clearly showing the importance of training.
12. What is the extent of familiarity of your employees in respect of organizational

culture?
Interpretation:
Thirty nine percent of respondent believed that yeah they are very familiar of
organizational culture there by making themselves more comfortable in working in the
organization while forty nine percent believed that they are somewhat familiar and they
are trying to get gel with the culture of organization in order to prosper in the
organization while twelve percent were totally unaware of the culture of the organization
and were seen as misfit in the organization and were thinking of switching to other
company. All this clearly indicate the importance of the culture adaptability.

13. Which one of the following organizational environments best describes the mood of
employees in your company?
14. To what extent would you state that your organization is experiencing barriers to
Solve the evils of cultural diversity?
Beneficial Number Percentage

To a great extent 17 34
To a small extent 26 52
No barriers at all 7 14
Interpretation:
As per our previous interpretation which clearly suggest the importance of the work
culture in an organization this question deal with how the organization have been

successful in amalgamating the work culture of what came out from my research was
that organization believe that they enjoy the success of bringing at the right platform.
With a great success rate of thirty four percentage and upto fifty two percent of small
extent.
15. How effective you have been in solving the cultural diversity evil?
Particular Number Percentage

No barriers at all 7 14
16. To what does your company’s recruitment/selection policy address cultural diversity
issues?
Particular Number Percentage

No not at all 3 6

Interpretation:
As the culture misbalance can came up and really effect the organization in hard way
hence it is important to pick up the right person and for this we have to make sure that
from the beginning we make sure that we select the pool of people who can fit in our
organizational goal organization have been believed that they make sure whether an
individual can fit in the organization and figures show that they have got some success
in this case with organization having great success of up to forty two percentage and up
to fifty two percentage in small extent.
17. What are the Factors affecting work life balance?
The Factors Number Percentage

Overwork 27 54
Work Underload 2 4
Social Changes 13 26
Demanding Spouse/Family 8 16

Interpretation:
Various factors which have affected the ones working life balance are many but major
chunk come out from the overwork and the social changes which total combine of eighty
percentages hence if we have balance personal and official life then we have to deal
with the overwork part and the social changes faced by employees. Then only we can
have a balance in one life and can improve the efficiency of our employee and motivate
them.
18.What are the outcomes of poor work life balance?
Outcome Number Percentage

Poor Health 5 10
Bad Family Relation 11 22

Strained Marital Relation 14 28
Divorce 2 4
Blood Pressure 10 20
Headache 5 10
Heart Problem 3 6

19. How successful the initiatives have been in order to check work life balance?
Degree of success Number Percentage

Very 12 24
Fairly 21 42
Not at all 17 34
Interpretation:
The outcome of the questionnaire was that not many people have advocated that their
problem have been addressed or the measure have been successfully implemented
only twenty four percentage of people said that they are satisfied and their problem
have been addressed while remaining forty two said some what they were solved while
the remaining a big chunk of thirty four said No clearly showing that still organization
have a long way to go in balancing one’s life.
20. How much attrition have affected your organization?
Degree of success Number Percentage

Not much 9 18
Average 22 44
Much 19 38

Interpretation:
As data clearly says that attrition really poses a big challenges in front of any
organization no matter how big or how small that organization is therefore organization
try to make it sure that attrition rate is as low as it can be.
21. How do you find the work in this company?
Particulars Number Percentage

Challenging 14 28
Stress free 5 10
Boring 6 12
Enjoyable 8 16
Monotonous 6 12
Stress Full 11 22

Interpretation:
As we can clearly see from the graph itself that majority of respondent gave their
negative response when it comes to work which clearly indicate that most of the people
really not enjoying the work in an organization and there by people are having a low
morale and creating one of the biggest challenge for management to motivate them.
22. Please state the state of affairs in the company which will make you the unhappy?

Working Conditions 14 28
Reward Package 10 20
Promotional Opportunities 17 34
&
Employee Benefits
Employee Recognition 9 18
Interpretation:
This chart above represents the state of affairs that make an employee
unhappy. The prime reason found is working condition in an organization, and then
comes reward package that the firm offers. So it can be said that all these things should
be taken care of and needed efforts should be taken to make the employee feel proud
about the organization in which he works. Hence an organization should make more
effect in keeping these two more aspects of life into consideration.
23. Are you rewarded for better performance?

Yes 14 28
No 10 20
Occasionally 26 52

Interpretation:
The degree of satisfaction that employee gets from his firm depends upon
various feature reward performance is one of the important in it. This figure shows that
how many times people are rewarded for their performance, occasionally rewarded are
the most in numbers. Some are in no also these are to be taken care of and addressed
so that it does result in grievance later.
24. Are you satisfied with present style of management in your company?

Highly Satisfied 8 16
Satisfied 10 20
Neutral 16 32
Dissatisfied 9 18
Highly Dissatisfied 7 14
Interpretation:
The graph above shows satisfaction in people from the management style
at their organization quite a lot people are satisfied good proportion are neutral. But the
thing in question is the dissatisfied portion of people these are to be taken care of to
keep up the organization spirit in the minds of the employees as even a small pool of
people are enough to make the organization crumble.
25. What do you think is the major reason for Attrition in your Organization?

Monetary Benefits 13 26
Job Satisfaction 11 22
Working environment 16 32
Better Opportunities 10 20
Interpretation:
The graph above shows the major reasons for attrition in any organization
major being working environment, job satisfaction and monetary benefits. It is thought
that better opportunity is one of the major but it is not revealed to be of that great
importance, all the factors are internal so they should be taken due care off.
26. Is Knowledge Management an issue in your organization?

Yes 20 40
No 14 28
Don't know 16 32

Interpretation:
The graph above shows whether knowledge management is an issue in
the organization of the respondents. We can see from the graph itself that it is kind of
equal distribution in the organization and we can say that it is needed to be addressed
as it is of vital importance because you have to make sure that individual grow and be in
an organization.
27. What among all this you feel is most important issue in your Organization?

Knowledge management 13 26
Performance appraisal 9 18
Recruitment 7 14
Attrition 10 20
Training and development 11 22
Most important issue in an

organization
KM
PA
Recruitment
Attrition

Interpretation:
Most important issue in organization among knowledge management,
performance appraisal, recruitment, attrition and T&D. is knowledge management. All
the issues have their own importance and all of them should be taken due care, where
all the factors are more and less important for the organization. Hence all the factors
should have to be kept in mind and make sure that organization work on it.
When do employees leave:
Chart showing how length of job tenure varies across different industry sectors:
Some industries have greater difficulty retaining employees than others. Our survey
results as shown in the above graph provide further evidence to support this argument.
The following chart demonstrates the scale of this disparity:
Employees , Employers

Chart comparing employers. perceptions of reasons for leaving and

employees,actual reasons for leaving:
Chart comparing employers, perceptions of reasons for leaving and

employees,actual reasons for leaving.
Chapter-6
Recommendation
1. Creating a learning organization:
The software companies should become learning organizations to ensure top-of-the line
growth.
2. Flexible working:
A flexi time schedule allow people to vary their start and finish time around pre-
determined “core-hours” Flexible working will help organizations to retain skilled staff

and reduce recruitment cost; raise staff morale and decrease absenteeism and react to
changing market condition effectively.
3. Job sharing:
A job sharing is an agreement usually involves dividing the workload of a full –time
position between two people. It is great way for IT people to keep on the fast career
tracks while allowing them to spend more time with there family.
4. Telecommuting/House working
It enables an individual to work from a location other than office or project site.
5. Compensation Philosophy:
Since compensation is an important retention criterion, it is good to start by defining and
understanding the compensation philosophy to pursue. Most development organizations
feel that they need to pay in the top 25% of what similar companies pay to attract and
retain the top talent. Reward management continues to be a “talent magnet”
6. Training and Development

Competitive compensation is certainly one part of the retention picture, but it's only a
starting point. Software developers are valuable for their technical knowledge, which
quickly goes out of date. Developers thus tend to value positions that provide ample
opportunities for training. So organizations should make proper arrangements to update
them on new techniques. Re-skilling is the hallmark of an effective training and
development.
7. Job Rotation
The most successful type of job rotation is approximately eight weeks in length,typically
rotating out to a non-development organization, such as sales, marketing, IT operations,
or finance that will provide professional a change from daily work. Rotation to another
development organization is possible, but typically this is useful only if there is a
prototyping or other short-term development opportunity available.
8. Companies should create a workplace full of fun, excitement and passion.
9. Employees Assistance Program:

Arranging, yoga. Meditation sessions for reducing stress. Varied tasks to employees for
rectifying monotonous jobs outing /get together should be arranged once in 2 months,

so that professionals can relax and enjoy. Intensification of “Employee Wellness

Program”.
10. Organization should use more of outbound learning to help professional to learn the
skill of work.
11. Increasing the number of performance linked awards/rewards is quite helpful
13. Employees should be empowered substantially through “Employee Engagement

Programs”


Chapter-7
Conclusion
From the above study it can be concluded that following factors are the one which really
create lot of dilemma and create lots of barrier in the smooth functioning of Human
Resource Manager in present time. These factors are Knowledge Management, Attrition
and Work Diversity.
These are some of the important factor which are very essence of any Human
Resource Department and Human Resource Manager must have a good look at
addressing these issues at the very beginning so that these problem doesn’t comes in
way of efficient working of any organization.
There are many factors which are most of the time ignored by management these
issues look very small by organization prospective but when it is looked from the worker
point all these factors are very important and hold a great significance in one’s life
hence it is the challenge which Human Resource Manager faces to address these issue
and work to find all these factors and work to fix them.

Interview with Mr. Kurup (AGM-HR-BPL)
• What are the factor that affect recruitment policy of BPL?
Ans:
Organizational objectives
Personnel policies of our organization and our competitors.
Government policies.
Need of the organization.
Recruitment costs and financial implications
• What are the factor you keep in mind for effective recruitment?
Ans:
For formulating an effective and successful recruitment strategy, the BPL uses following
strategy elements:
¾ Identifying and prioritizing jobs

¾ Candidates to target
¾ Performance level required
¾ Experience level required
¾ Category of the candidate
¾ Sources of recruitment
• What are your Strategy regarding Human Capital?

Ans:
WE HAVE PREPARED 10 STEPS ---
Ten Underlying and Interrelated Principles of Human Capital Management
1. Treat human capital management as being fundamental to strategic business

management.
2. Integrate human capital functional staff into management teams:

3. Leverage the internal human capital function with external expertise.
4. Hire, develop, and sustain leaders according to leadership characteristics identified

as essential to achieving specific mission
5. Communicate a shared vision that all employees, working as one team, can strive to
accomplish.
6. Hire, develop, and retain employees according to competencies.
7. Use performance management systems, including pay and other meaningful

incentives, to link performance to results.
8. Support and reward teams to achieve high performance.
9. Integrate employee input into the design and implementation of human capital
policies and practices.
10. Measure the effectiveness of human capital policies and practices.
• HOW well your training program has been implemented are you satisfied?
Ans:
We had a series of T&D program in last 2 years and we are satisfied with the way
things have gone, our employee have been benefited a lot and hope its results are
coming out in and we are satisfied because of some financial strain we had to close
and minimize our training program but now we have started T&D program and we
have a series of them in line.
We are having a mix of in-house and out-house training program in order to

meet our objectives and all training program are meant to develop Knowledge Skill
& Ability (KSA) for the development of individual and organization in whole.
• How much importance you give to Employee motivation, Recognition,

Rewards?
Ans:
All these three are the pillar for success of any organization Motivation leads to
stimulating the sense of desire which can be generated by recognition and rewards if
given to employee which will boost his morale and his commitment toward the
organization.

And for all this we require Perfect Appraisal Program hence we try to take care of
each and every aspect required to motivate our employee.
• Are you satisfied with the performance appraisal program you have in your
organization?
Ans:
We have 180* performance appraisal program and we are satisfied as it is less

complicated in nature and we have a bond of trust between our people so no question
of any mistrust or confusion, our organization have mutual trust and confidence among
each other hence it form a basis of perfect appraisal program.

BIBLIOGRAPHY
BOOKS:
1. “Training and Development Concept and Cases”
Edited By: V.V. Raman
(ICFAI publications)
2. “Effective Talent Management”

Edited By: V.V. Raman
(ICFAI publications)
3. “Human Resource Management”

By: V.S.V Rao
4. “Human Resource Management”

By: Ashwatthapa
5. “1001 ways to Energize Employees”

By: Bob Nelson
Workman publishing House, New York
6. “1001 ways of Reward Employees”

By: Bob Nelson
Workman publishing House, New York
BUSINESS MAGAZINES:
1. BUSINESS WORLD
2. BUSINESS TODAY
3. BUSINESS LINE
4. BUSINESS STANDARD

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SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

DEGREE OF BANGALORE UNIVERSITY

Under the Guidance of

M.P Birla Instt. of Management

M.P.Birla Institute of Management Page 1

I hereby declare that the dissertation entitled “Challenges faced by H.R

Place: Bangalore Himanshu Joshi

M.P.Birla Institute of Management Page 2

I hereby certify that the research work embodied in this

M.P.Birla Institute of Management Page 3

I would like to express my gratitude to “BPL Limited”, organization as a whole which

I also extend my appreciation, thankfulness to employees of B.P.L during the

I thank Dr. Nagesh Malavalli, Principal M.P.Birla Institute of Management for

M.P.Birla Institute of Management Page 4

S.NO PARTICULARS Pg.No

1 Background of the Study 2

M.P.Birla Institute of Management Page 5

Human Resource play an important role in a phenomenal growth in all the

M.P.Birla Institute of Management Page 6

M.P.Birla Institute of Management Page 7

M.P.Birla Institute of Management Page 8

M.P.Birla Institute of Management Page 9

M.P.Birla Institute of Management Page 10

PURPOSE OF THE REVIEW OF LITERATURE

Title: Employees stress and performance

Creating a high performance organization requires understanding what factors

Title: Developing Human Capital for Sustaining the Growth of Industry

Articles by Forum Member

M.P.Birla Institute of Management Page 11

Title: Performance management

Performance management helps organizations to strengthen their working

Title: When Teams Work Best

Title: Managing Employee Retention as a Strategy for Increasing

The author conducted the research at a large, complex organization using a

M.P.Birla Institute of Management Page 12

Title : MAJOR HR CHALLENGES IN THE IT INDUSTRY

Title: Balancing Work and Family

M.P.Birla Institute of Management Page 13

Schedules: A Work/Family Balance Solution listed below in the Reference

M.P.Birla Institute of Management Page 14

Managing Human Capital in recent scenario

M.P.Birla Institute of Management Page 15

• Employees should be viewed not as costs to be cut but as assets to

• Strategic human capital management recognizes that employees are a critical

Two principles those are critical in a performance management environment. First,

M.P.Birla Institute of Management Page 16

Human Capital Principles we identified

BPL formulated ---

1. Treat human capital management as being fundamental to strategic

M.P.Birla Institute of Management Page 17

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Capturing knowledge and creating knowledge culture.

• “The corporate learning center” on the web.

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Performance appraisal is the process of obtaining, analyzing and recording information

• To review the performance of the employees over a given period of time.

• To help the management in exercising organizational control.

• Helps to strengthen the relationship and communication between superior –

• To diagnose the strengths and weaknesses of the individuals so as to identify the

• To provide feedback to the employees regarding their past performance.