Description
personal file audit
OVERVIEW OF FUTURE GROUP:
Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day. Future Group understands the soul of Indian consumers. As one of India?s retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow. Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth. We believe in the „Indian dream? and have aligned our business practices to our larger objective of being a premier catalyst in India?s consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soars once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India.
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FUTURE GROUP’S BELIEFS:
Future Group was founded on a simple idea: Rewrite rules, retain values. This fundamental belief created a new kind of marketplace, forever transforming Indian retail. Today our core values continue to guide how we do business and improve the quality of life of the people we serve. At Future Group we are committed to being a catalyst of positive change in the communities, societies and business sectors in which we operate. We envision India?s transformation into the legendary 'Sone Ki Chidiya' (golden bird), taking wings once again to reach greater heights. We take pride in our Indianness. Our belief in inclusiveness for long-term sustainable growth and economic prosperity evokes trust among consumers, employees, suppliers, partners, shareholders and the community.
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Vision, Mission and Values of Future Group:
1. VISION:
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We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. 2. VALUES: ? Indianness: Confidence in ourselves. : To be a leader, both in thought and business. & Humility: To respect every individual and be humble in our conduct. : Leading to purposeful thinking. : to be open and receptive to new ideas, knowledge and information. and Nurturing Relationships: To build long term relationships. & Positivity: Simplicity and positivity in our thought, business and action. : To be flexible and adaptable, to meet challenges. : To respect and understand the universal laws of nature
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LEADERSHIP TEAM:
KISHORE BIYANI FOUNDER AND GROUP CEO, FUTURE GROUP. Considered a pioneer of modern retail in India, Kishore?s leadership has led the group?s transformation into India?s leading player in the consumption sector. Regularly ranked among India?s most admired CEOs, he is the author of the book „It Happened in India?. He has won multiple awards from government bodies and the private sector in India and abroad and is on the board of a number of bodies, including the National Innovation Foundation in India and New York Fashion Board. In a career spanning over 18 years, Anshuman has worked in all aspects of the value chain across several industry segments such as Discrete Manufacturing, Durables, Textiles, Retail and Supply Chain with companies like Grasim, H&R Johnson, Bombay Dyeing, and We spun Retail. He is responsible for starting the first Home Furnishings Specialist Retail Chain in the country in his last assignment as the Director and CEO of Wels pun Retail Ltd. before rejoining Future Group where he created Future Supply Chains Ltd. Anshuman is a Mechanical Engineer and an MBA. A Chartered Accountant by training, Anand has nearly 20 years of experience in corporate finance and banking across diversified business groups. Before joining Future Group, he was President-Corporate Finance, Vedanta Resources Group. He has been associated with Motorola India, Credit Lyonnais, HSBC, IL & FS and Citibank. An alumnus of IIT Mumbai and IIM Bangalore, Damodar has over two decades of experience in the FMCG and food industry. He was a co-founder of D?Mart, a supermarket chain in Western India, and was associated with Unlived in India. Co-founder of the Color plus brand, Kailash has over three decades of valuable experience in the fashion business and is considered to be a stalwart in the Indian fashion industry. Before joining Pantaloon Retail, he was associated with Weekender, Arvind Mills and Mafatlal Industries, among other companies.
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CONTD….
International, H&R Johnson and Motilal Oswal Private Equity Advisors. He has previously worked as Group CFO with Pantaloon Retail.
Sanjay has over two decade of experience in working with a wide range of companies in the services sector in India and abroad. A post-graduate from Pune University, he joined Future Group in July 2005. Before this he worked with companies like DHL Limited, Indian Hotels Group, Bharti Enterprises and RPG Enterprises.
An alumnus of IIM Ahmadabad, Santosh has over two decades of experience in advertising. He was President of McCann-Erickson, India prior to his association with Future Group. A highly respected figure in the advertising and marketing community in India, Santosh is a columnist with the Times of India and several other publications and has addressed the global management boards of several multinationals, including Hershey?s, Microsoft, Philips, Unilever, Coke etc. He is also the author of the book „Mother Pious Lady – Making Sense of Everyday India?.
An entrepreneur in his own right and an urban developer, Sumit has 21 years of corporate experience with significant exposure to the real estate sector. Before joining Future Group, he was on the Board of Directors of Calcutta Metropolitan Group and Riverbank Holdings. He has served as a Member of Infrastructure Council in CII, Infrastructure Sub-Committee Chairman, Regional Council Member and Core Group Retail Chairman in CII (Eastern Region), and as an Infrastructure Committee Member, Executive Committee Member, and Chairman of Young Leaders Forum in the Indian Chamber of Commerce.
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STRATEGY USED BY FUTURE GROUP:
A new normal is being defined in the Indian consumer market every day. With far-reaching socio-economic changes that India has undergone in the last decade, the drivers in urban and rural India are maturing fast. With a growth strategy tempered with localization and an inclusive business model, Future Group is the only pure play local retailer poised to lead India?s consumption story with sustainable value creation. Our multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, our strategy is based on our deep understanding of Indian consumers. We understand the varied buying behavior of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences. Future Group's strategy is aimed at achieving inclusive, sustained and profitable growth with three levels: Customer-orientation: The bottom line in each of our retail success stories is "know your customer". Insights into the soul of Indian consumers - how they operate, think, dream and line - helps us innovate and create differentiating functionally. Continuous-innovation: As India's largest retailer, we understand the importance of innovation. We rethink strategies and realign businesses with increasing agility to provide diverse customer groups with refreshingly different retail experiences. Collaborative transformation: Creating a collaborative environment combining our strengths with our suppliers and vendors helps us create immense value for our customer which in turn fosters mutual growth.
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CONTD….
We believe that modern Indian retail rests on the strength of two pillars – scale and efficiencies. As front-runners in both areas, we firmly believe our core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of our operations helps us improve efficiencies, it also ensures we deliver greater value to our customers.
Our retail thrust is focused on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations. Acknowledging this, we are creating retail pure play through divestment and demerger of non-retail businesses to concentrate our efforts on these verticals.
India?s retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country.
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CURRENT AND PAST SCENARIO AT FUTURE GROUP…. “MILESTONES”
25 years ago, we began our pioneering journey transforming the Indian retail landscape, whole-heartedly believing in rewriting rules and retaining values. Today, our deep footprint across India and landmark growth is testament to our enduring values. 2011
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April 2011 – KB?s Fairprice celebrates opening its 200 stores in India May 2011 – Future Supply Chains becomes ISO certified
2010
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Future Group launches its telecom brand T24 in partnership with Tata Teleservices to provide additional loyalty benefits to its customers. Future Group launches products in key FMCG categories through Sachin, a brand co-created with Sachin Tendulkar. Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers.
2009
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Future Group celebrates its first Shopping Festival across all retail formats in key Indian cities. Future Innoversity starts its campuses in Ahmadabad, Bangalore and Kolkata to offer degree programs through a tie-up with IGNOU. Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply chain and logistics network across the country.
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2008
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Future Capital Holdings becomes the second group company to make a successful Initial Public Offering (IPO) in the Indian capital market. Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. Total operational retail space crosses the 10 million square feet mark. Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a presence in 65 rural locations.
2007
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Future Group crosses the $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year award at USbased National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Online portal Futurebazaar.com becomes India?s most popular shopping portal.
2006
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Future Capital Holdings, the group?s financial arm, is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major Generali. Future Group forms joint ventures with US office stationery retailer Staples.
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2005
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Future Group moves beyond retail and acquires a stake in Galaxy Entertainment, Indus League Clothing and Planet Retail. Future Group sets up Kshitij, India?s first real estate investment fund, to build a chain of shopping malls.
2004
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Future Group launches India?s first seamless mall, Central, in Bangalore.
2002
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Food Bazaar, the supermarket chain is launched.
2001
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Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore and Hyderabad.
1997
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Future Group enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata.
1995
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Future Group launches John Miller, a brand for Formal shirts.
1994
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The Pantaloon Shoppe, Future Group?s exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.
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1992
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Pantaloon Retail India Ltd makes an Initial public offer (IPO).
1991
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BARE, an Indian denim brand is launched.
1987
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The company is incorporated under the name of Manz Wear Private Limited. Pantaloons, one of India?s first formal trouser brands, are launched.
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FUTURE THOUGHT OVERVIEW:
Retail leadership in India through innovation and transformation. Future Group offers new ways of thinking about retail and consumerism in India. We believe Retail must take the lead in renewing our economic growth trajectory. Leveraging the experience and insights gained in pioneering retail in India, we have developed a deeper understanding of the evolution of modern Indian retail and its role in driving sustainable economic growth. At Future Group, we believe in channelizing our energies to research-based innovation for generating value and delivering better experiences to customers. We are focused on achieving sustainable business performance through the synergy of customers, communities and partners by ongoing learning, unlearning and adaptation. Our thinking delivers business value in 3 ways
Knowing India the Indian way.
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Embracing Indianness to conduct business across various socio-economic and demographic segments Integrating the traditional approach into modern-day retail to identify critical customer-value levers and game-changing trends in Indian retail
Driving Inclusive Growth.
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Thriving in an ecosystem that facilitates collaboration and inclusive growth as a sustainable economic growth model for India Creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth
Accelerating Innovation.
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Driving innovation with solutions that reconcile the interests of our business, the environment and other stakeholders Leveraging powerful research as a co-creation engine to harness consumption opportunities created by emerging urbanization and lifestyle trends
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“INTRODUCTION TO HUMAN RESOURCE AUDIT”
A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to ensure compliance with ever-changing rules and regulations. An Audit involves systematically reviewing all aspects of human resources, usually in a checklist fashion. Sections of review include:
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Hiring and Orientation Benefits Compensation Performance evaluation process Termination process and exit interviews Job descriptions Form review Personnel file review
The purpose of an HR Audit is to recognize strengths and identify any needs for improvement in the human resources function. A properly executed Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct such a review include:
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Ensuring the effective utilization of the organization?s human resources Reviewing compliance concerns with a myriad of administrative regulations Instilling a sense of confidence in management and the human resources function Maintaining or enhancing the organization?s and the department?s reputation in the community Performing “due diligence” review for shareholders or potential investors/owners Establishing a baseline for future improvement for the function
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Because of the multitude of laws affecting each stage of the employment process, it is extremely important for an employer to regularly review their policies and practices to ensure regulatory compliance in order to avoid potentially costly fines and/or lawsuits. An employer overlooking regulatory compliance with their human resource practices could face:
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A fine of $1,100 for any violation of the appropriate payment of overtime for non-exempt employees in accordance with the Fair Labor Standards Act. Penalties as high as $10,000 each occurrence for failing to post required safety notices or keeping accurate records. Fines up to $1,000 per employee for non-compliance with the Federal Immigration Reform Act.
While penalties such as these help define the risk of non-compliance and signify the importance of conducting periodic HR Audits, an Audit can also ensure that policies and procedures are fair and consistent across the organization and strengthen employee satisfaction. By maintaining a satisfied and productive workforce, an employer lessens the expense associated with costly turnover of staff. Losing one employee is estimated to cost a company 50 – 150% of the lost
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INTRODUCTION OF THE STUDY:
HR Audit refers to an examination and evaluation in policies, procedures and practices to determine the effectiveness and efficiency of Human Resource Management. It determines what should or should not be done in the future as a result of such measurement. It measures the mission, objectives, strategies, policies, procedures, programs, and activities of HRM. It is used to evaluate the performance of the personnel staff and employees. By performing this task, we can know the actual performance of the company. The company which is performing certain HR activities will direct to attaining their objectives. HR audit will identifies the errors and it devices a solution for their. It is a mandatory task by an organization, if they want to develop their HRM in future. It verifies all the activities which are undergoing in the organization and identifies the errors to give a proper solution. It reflects the organization for the development of HRM in future. By undergoing HR audit regularly in reorganization the efficiency levels of the personnel staff and employees will improve. An HR Audit should be done once in 6 months, so that the organization will be effective. It rectifies the problems and errors which have been arrived in the organization. It certainly reduces the errors and makes an effective HRM. My personal reason for taking this project is by doing HR Audit we can know the overall performance of the organization. It clearly explains the things “what should be or should not be done, what are the things should (or) should not be done for attaining development in both employee and managerial point of view HR Audit is very important task to know their efficiency of HR Activities. Among all the topics of HRM, HR Audit plays a vital role in the organization. The reasons for taking this project are 1. It evaluates the performance of personnel staf f and employees. It determines the performance of the employees. From the basis of their results, we can do Performance Appraisal. 2.It rectifies the problems (or) errors arise in the organization and the employees need motivation to develop themselves. What type of motivation can be known by making HR Audit. 3.HR Audit examines the entire HR department and all HR Activities. So, we can gain knowledge of all the activities undergone.
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4.HR Audit is involved with all the HR Departments, so we can know the levels of employee job satisfaction levels by making interaction with them through questionnaire. So, HR Audit is linked with all the necessary HR Activities. By selecting one topic (or) HR Activities, we can gain knowledge about that topic itself. But, by doing HR audit we can gain knowledge about all the HR Activities.
HR Audit results in gaining the overall knowledge of HRM in the organization. It is very important for the organization to know their efficiently of HRM. It results to gain knowledge from the manager and manager?s point of view. HR Audit is a mixture of all activities in every point of view. By making HR Audit, we can know about whole HRM briefly rather than going for taking one topic and know about that
NEED OF HUMAN RESOURCE AUDIT:
The need of the audit is to reveal the strengths and weaknesses of the organization to solve their problems. This audit helps us to know the opinions of the employee?s towards the organization in which they are working. The organization can identify and solve the problem of the employees to achieve their goals. By studying this topic, we can know the overall knowledge about HRM in an organization.
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OBJECTIVES OF HUMAN RESOURCE AUDIT:
Before beginning an HR audit, the senior management team must decide on the overall objective of the proposed audit. For example, senior management may have noticed a turnover trend among employees that is excessively high for the industry in which it does business. One objective may be to evaluate the human resource function with respect to employee retention. The senior management team decides the overall objective or purpose for the audit, which may be singular or multipronged.
SCOPE:
The scope defines the breadth of the HR audit. This step determines the individual areas for review and provides a guideline for the group or business conducting the audit. This may include requiring a review of HR compliance with federal and state laws, the human resource information systems, the department's service and management roles as well as any strategic HR programs in place for company personnel.
ADVANTAGES:
Because employees play a vital role in a company's success, it is important for senior management to understand and know how well its human resources department functions. The department is associated with recruitment, training and development and retention of a company's employees; it also manages and oversees employee compensation and benefits, programs, services, employee performance, labor relations and job design. Understanding the effectiveness of a human resources function helps management discover the top practices relevant to the industry and what steps it might need to take within the human resources function to help the company achieve its business goals and objectives.
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APPROCHES TO HR AUDIT:
There are five approaches for the purpose of evaluation of HR in any organization: 1. Comparative approach 2. outside authority 3. Statistical 4. Compliance approach and Management by Objectives (MBO) 1. Comparative approach: In this, the auditors identify Competitor Company as the m o d e l . T h e results of their organization are compared with that of the M o d e l Company/ industry. 2. Outside authority approach: In this, the auditors use standards set by an outside consultant as benchmark for comparison of own results. 3. Statistical approach: In this, Statistical measures are performance is developed Considering the company?s existing information. 4. Compliance approach: In this, auditors review past actions to calculate whether t h o s e activities comply with legal requirements and industry p o l i c i e s a n d procedures. 5. Management by objectives (MBO) approach: This approach creates specific goals, against which performance can be measured, to arrive at final decision about industry?s actual performance with the set objectives.
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SCOPE OF HR AUDIT:
Generally, no one can measure the attitude of human being. Hr audit must cover the activities of the department and extend beyond because employees? problems are not c o n f i n e d t o t h e H R d e p a r t m e n t a l o n e . S o i t i s v e r y m u c h b r o a d i n n a t u r e . I t s h o u l d evaluate the personnel function, the use of its procedures by the managers and the impact of these activities on the employees. It covers the following HR areas: 1. Audit of all the HR function. 2. Audit of managerial compliance of personnel policies, p r o c e d u r e s a n d l e g a l provisions. 3. Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration another HR activities. 4. Audit of the HR climate on employee motivation, morale and job satisfaction.
The HR audit has a very wide scope. It assumes that the management of human resources involves much more than the practice of recruiting, hiring, retaining and firing employees. It examines the concept of 'people management' by supervisors at all levels. It covers areas like HR philosophy, policies, programmers, practices and personnel results. The National Industrial Conference Board of the United State states, "The top management is interested in auditing all the programmers? relating to employees, regardless of where they originate, or the channels through which they are administered". The major areas of HR audit include:
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programming, forecasting and scheduling to meet organization and personnel needs Areas of recruitment, selection, careers, promotions, training and development Areas of leadership, welfare, grievances, performance appraisal, employee mobility, and industrial relations.
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BENEFITS OF HR AUDIT:
1. Identification of contributions of HR department 2. Improvement of professional image of HR department 3. Encouragement of greater responsibility and professionalism among HR members 4. Clarification of HR duties and responsibilities 5. Stimulation of uniformity of HR policies and practices
6. Finding critical personnel problems 7. Ensuring timely compliance with legal requirements 8. Reduction of HR costs through more effective personnel Procedures 9. Creation of increased acceptance of changes in HR department 10. A thorough review of HR information systems
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1. DOSSIER AUDIT AT FUTURE GROUP
The project undertaken by me in Future Group was HR Audit, which is followed by dossier audit. Future Group is maintaining Dossier of every employee who is working with the group. Basically dossier is the documentation file of every employee. Which company has to maintain for the backup of the record. This is a very good process undertaken by future group as it gives whole information of the employee at one glance itself. When a employee joins a firm company provides some important documents to the employee, which the employee has to keep in their respective dossiers. There is the regular check on the documentation of all the employees. Dossier is basically the checklist of all the documents. The Dossiers includes: 1. Employee code, Band, Designation, Date of Joining. 2. HR verification signature 3. Employee photograph 4. Code of conduct 5. Employee joining report 6. PF. Form no.2 7. Gratuity form 8. ESIC form 9. Appointment letter 10. Offer letter 11.Confirmation letter 12. Last increment letter 13. Address proof 14.Education documents 15. Photo ID proof.
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2. Employee manual at Future Group:
Job descriptions – how you write them and what duties each role performs Recruitment and selection – the process you follow to hire and reference check an employee New employee welcome and employee induction process – how you welcome new employees into your business and the process you use to ensure they know the rules of your business Employee Probation – how you manage an employee probation and what you do if you don't confirm the probation Rosters and hours of work – how rosters are developed, what the hours of work are, how to change rosters, overtime, public holidays, time sheets and punctuality Pays & personnel records – when and how pays are made, what is contained on pay slips Staff benefits - Any staff discounts or benefits you offer for goods and services Termination of employment – what happens when someone resigns, is made redundant, abandons their employment or is sacked Travel and expenses – rules and reimbursements around travel in the course of employment Employee Appraisals – the process you use to appraise employee performance Personal Behavior – all of the legal requirements such as anti-discrimination, workplace bullying and harassment, workplace health and safety need to be included here Code of conduct – the minimum acceptable standards of behavior Discipline – How you deal with an employee who breaks the rules Grievances – how you will resolve any grievances from an employee
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WHAT IS AN EMPLOYEE TO ORGANISATION??
? Employees are the most important assets of any organization. ? Employees understand how they can contribute to the effective working of an organisation. ? To appreciate what this means for them, learners should understand the contribution and interdependence of different employee roles in delivering the organisation?s product or service. ? They also need to be aware of the impact of practical, interpersonal and cultural issues on the success of the organisation.. Things explained to employees regarding PROVIDENT FUND Form. ? ? ? ? ? ? ? ? Employee?s Provident Funds Act - 1952 Meaning Objectives Scope of PF Forms: PF nomination at the time of joining PF transfers (both transfers in and transfers out) PF withdrawal Process in depth
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Employee state Insurance.
? ? ? ? ? ? Employee?s State Insurance Act – 1948 Meaning Objectives Eligibility Contribution Contribution period and benefits:
Benefits to the Employees : ESI Act.
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Employees are entitled for benefits in cash and kind which includes: ? ? ? ? ? ? ? Medical Benefit – for Self and family Sickness Benefit - for self Maternity Benefit - for self Disablement Benefit Temporary Disablement Benefit - for self Permanent Disablement Benefit - for self Dependents? Benefit – for dependents in case of death due to employment injury.
In addition, the scheme also provides some other benefits to insured persons such as: ? Funeral Expenses – to the eldest surviving member of the family ? Old age Medicare – for self and spouse ? Vocational Rehabilitation
GRATUITY.
? Payment of Gratuity act – 1972 ? Meaning
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? Objectives ? Examples
Literature review:
This study focuses on the evaluation of human resource management activities using auditing methodology. Human resource auditing is located both within and between each of the fields of human resource management and auditing. This research has two parent disciplines: auditing and human resource management. Auditing is described as an investigative and information processing activity, which evolved in response to the need for independently verified stewardship reports (Parker, Ferris & Oley 1989). Within the discipline of auditing a human resource audit is a functional or activity audit conducted within or across a range of defined auditing types (see section 2.8). A human resource performance audit is one type of audit, generally located within the audit sub-type of operational auditing. Human resource management emerged from traditional personnel management in the 1980s. Traditional personnel management was viewed largely as involving the performance of basic staffing functions, often conducted without regard to other organizational activities and without alignment to organizational objectives. Human resource management as a profession evolved as an extension of the traditional personnel role into a more effective organizational activity. Within the field of human resource management a human resource audit is on method of evaluating or assessing activities. This is not a clear sub-grouping; human resource evaluation is not systemically identified in modern textbooks. However, there is evidence in the literature of the grouping of human resource auditing with other human resource evaluation methods for the purposes of discussion and comparison (CCH 2007). The researcher argues, after an examination of the literature, that a performance audit conducted using the relevant Australian auditing standards could be a suitable method for evaluating the contribution of human resource management activities to current and future organizational goals. The human resource management performance audit methodology is set out in the Australian standards (Australian Auditing Standard „AUS? 806 & 808) and assumes a professional practice
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framework for auditors. These standards can be applied to both public and private organizations (AUSp.4; AUS 808 p.4). A human resource management performance audit is a future orientated examination, designed to add value to an organization. Auditing has identified qualities that separate it from other forms of evaluation. Audit methodology is evidenced based, acceptable to a variety of potential stakeholders and operates within an independent assurance paradigm. The profession of auditing has detailed rules and processes for conducting an audit and these are detailed in the professional practices frameworks adopted by auditors (e.g. IIA 2006a). An accepted definition of human resource auditing has proven to be elusive with many writers either not offering a definition or offering a definition without firmly grounding that definition in auditing. A key construct emerging from the study is that human resource auditing involves the application of auditing theory and practice within the area of human resource management, with the activities to be audited determined by the audit scope. Where the literature on human resource auditing is not grounded in auditing, it is flawed. In particular the requirement for independence is fundamental to auditing. There are also a number of practical issues that occur in human resource management auditing (refer to section 2.14) which need to be understood within the context of the professional practice of auditors. This chapter commences by considering the literature on human resource auditing to uncover key elements of auditing. There is a need to reconcile the literature between the two dominant fields of study to reveal subtle but significant differences in the approach taken by each. The tendency of human resource management writers to confuse the term „auditing? with „review? is highlighted. Key constructs for human resource management auditing emerge and the concept of managerial assurance is firmly separated from independent audit assurance.
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Human resource management The Society for Human Resource Management, based in the United States but worldwide in its focus, describe human resource management on their website as “the formal structure within an organization responsible for all the decisions, strategies, factors, principles, operations practices, functions, activities and methods related to the management of people” (SHRM 2007a). In relation to human resource management it is observed that “every manager is a human resource manager” (Mathis and Jackson 2003 p.5) and that human resource management involves “all management decisions” (Fisher, Schoenfeldt & Shaw 2003), emphasizing that human resource activities can also be undertaken by line managers. Mathis and Jackson (2003 p. 816) define human resource management as: The design of formal systems in an organization to ensure effective use of human talent to accomplish organisational goals. The definition offered by Mathis and Jackson is preferred since it exhibits an outcome orientation: human resource management contributes to the achievement of organizations goals. This definition is adopted for the purpose of this study with an amendment. In the Australian Auditing Standard 806 (Performance Auditing) performance can be evaluated through efficiency, and/or effectiveness and/or economy (see section 2.8). Consistent with that standard the definition adopted is: The design of formal systems in an organization to ensure the efficient, effective and economic use of human talent to accomplish organizational goals. The justification for adopting the revised definition is to clearly identify that the performance auditing standard has three dimensions, described in the auditing literature as “the three E?s” (Craven & McNulty 1994 p.5). Khan (2005) recognizes that the three concepts are overlapping but each provides a contributing insight when considering performance.
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Strategic human resource management There are identified differences between human resource management and strategic human resources management that need to be understood by an auditor (Teo 1997). Strategic human resources management evidences the integration of human resource management with other management activities of the organization and with the strategic planning and organizational objectives as a whole. It should be possible, when operating under a strategic human resource management framework, to identify and examine the critical human resource issues that will determine the success of the organization. An auditor who considers the stated human resources management objectives but not the fitness of those objectives to achieving the organization?s objectives might miss the opportunity to further enhance organizational performance. Some of the suggested areas for audit consideration include: the linkages between human resource management and strategic management processes, the role of human resource practitioners, the business knowledge and technical expertise of human resource practitioners, the level of fit (Internal, external, vertical and horizontal) with strategic management processes and the managerial style toward employee representatives (Teo 1997). Financial audits A (financial) audit can be described as an official examination and verification of accounts and records, especially of financial accounts (Delbridge 1982, p.79). It involves an examination of the auditee?s accounting records by an independent certified public accountant to formulate an audit opinion (Siegel & Shim 2000). The auditor must follow auditing standards and generally accepted auditing procedures, with a sample of source documents examined to substantiate the legitimacy of transactions.
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The traditional financial audit of payroll, covering (for example) segregation of duties, reconciliation of payments, verification of staff and their entitlements, leave liabilities and leave transactions is well known to human resource management practitioners. A human resource management audit does not displace the traditional financial audit since the scope, stakeholders, target report audience and audit personnel may not be the same. The accounting audit of elements of human resource management remains an essential part of an organization?s audit program. There are national standards covering financial auditing and there have been calls for the development of further accounting standards in relation to human resource management areas (Appelbaum & Hood 1993) but these areas are outside the scope of this study.
Compliance audits In the Australian context compliance reviews are covered by the Australian standard known as Compliance Programs (AS 3806-2006). The objective of the standard is to provide principles and guidance for organizations that are designing, developing, implementing, maintaining or improving a compliance program. Compliance in this context covers legal requirements, industry and organizational standards and codes, the principles of good governance, codes of conduct and accepted community and ethical standards. The emphasis is on establishing a compliance program which includes twelve nominated compliance principles covering the commitment to compliance, the implementation of the program, monitoring and measurement and continual improvement. Effective controls are needed to ensure compliance obligations are met and that critical points of risk of compliance failure are addressed. A compliance audit can assess the effectiveness of controls by critiquing management systems and procedures (Clardy 2004). A self review of compliance is not a compliance audit but it can provide the basis for validation by a competent, independent auditor in a testing program that meets the generally accepted practice standards for auditing.
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Operational audits: A working definition of operational auditing is provided in the training manual issued by the Institute of Internal Auditing as: „the application of good business practices, logical audit techniques, a management perspective and common sense to the evaluation of business issues?. (IIA 2006, p. 2-3) This definition is broad but in practice there are boundaries to the types of activity usually undertaken in operational auditing. The general types of operational audits are said to be a risk-based approach, a value for money approach and a value cost (or business process improvement) approach (IIA 2006b). These three types can be used separately or in combination with each other in the context of the function being audited. This type of audit has one key differentiating factor – it can be future orientated. Operational auditing begins with the auditor looking at a business from the manager?s point of view, and their underlying mission, vision and objectives for the organization. It is therefore necessary for management to have clearly described their: vision, mission, goals, and expected performance standards in order to provide a clear purpose and standards against which management activity can be examined by the auditor. This does not always occur in practice.
Value cost or business improvement process audits: The value cost or business improvement approach uses a variety of tools to recommend process improvement through internal audit consulting activity (IIA 2006b). This approach uses process flowcharts and analytical tools to map business processes in order to demonstrate process ownership and accountability, to demonstrate the actual process and sub-processes, to identify control points and measures and to aid process improvement. This activity can be especially useful when the time taken and costs are identified in process steps since it then allows for the improvements in processes resulting from the examination to be quantified
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RESEARCH METHODOLOGY:
Research is essentially an investigation, a record and analysis of evidence for the purpose of gaining knowledge.
Research design: A research design is simply the frame work and plan for a study that is used in guide for collecting and analyzing the data. It is blue print that is completing the study. Research design can be thought of as a structure of research, it is the glue that holds all the elements in a research project together.
Data Collection: The task of data collection begins after research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz. primary and secondary data. Primary data- primary data is he data which is collected for the first time Secondary data –secondary data is a data which have already collected by someone else.
Sources of data: There are two types of data, 1. Primary sources of data
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2. Secondary sources of data
1. Primary data sources : In primary data collection, we collect the data by ourselves using the method that is interviews and questionnaires. The key point here is that the data we collect is unique to us and our research. Primary data is a data which is collected by the researcher directly from his own observation and experiences. For example if the researcher conducts a survey for the collected data , than it is known as primary data Primary data are those data which is collected for the first time, taking a sample, representing a population.
There are many methods of collecting primary data and the main methods includes; 1. Questionnaires 2. Interviews 3. Observation 4. Schedules 5. Survey
Questionnaires: A questionnaire is a series of questions asked to individuals to obtain statistically useful information about a given topic. Questionnaires are a valuable method of collecting a wide range of information from large number of individuals, often referred to as respondents. Adequate questionnaire construction is critical to the success of a survey. Inappropriate questions, incorrect ordering of
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questions, incorrect scaling, or bad questionnaire format can make the survey valueless, as it may not accurately reflect the views and opinions of the participants. A useful method for checking a questionnaire and making sure it inaccurately capturing the intended information is to pretest among a smaller subset of target respondents.
Closed-Ended Questions
In this project closed-ended questions are used. A closed-ended question is a form of question which can normally be answered using simple "yes" or "no", a specific simple piece of information, or a selection from multiple choices. Closedended questions limit respondents' answers to the survey. The participants are allowed to choose from a pre-existing set of dichotomous answers, such yes/no, true/false, or multiple choice with an option for "other" to be filled in, or ranking scale response options. The most common of the ranking scale questions is called the Likert scale question. This kind of question asks the respondents to look at a statement and then "rank" this statement according to the degree to which they agree ("I strongly agree, I somewhat agree, I have no opinion, I somewhat disagree, I strongly disagree").There are 5 basic types of closed-ended questions: Multiple-choice; Categorical; Liker-scale; Numerical; and Ordinal. Closed-ended questions provide primarily quantitative data, and are frequently used in confirmatory research Multiple Choices Use a multiple-choice question when you want your respondents to choose the best possible answer among all options presented. Categorical Use a categorical question when the possible answers are categories, and the respondent must belong to one category Liker-Scale Use a Liker-scale question when you are trying to determine respondents? attitudes or feelings about something.Likerts scale has 5 points.1 being not very important, 5 being extremely important. Ordinal Sometimes you may want your respondents to rank order their responses. A ranking indicates the importance assigned by a participant to an attitudinal object.
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Numerical When the answer must be a number, ask a numerical question.
2. Secondary data sources:
Secondary sources of information may be divided into two categories. Internal sources: Data that originate within the firm for which the research is being conducted are internal data.
External sources:
Which are generally published and are available in different forms and from different sources? The main sources of external secondary data are, Libraries: Researcher first attends libraries to find out relevant data pertaining to research. Management institutes, research institutes, banks, insurance companies, public utility companies and manufacturing units have maintained adequate libraries. Literature: A great amount of secondary data is available from literature, particularly literature on marketing subjects. Consultations of this literature may provide proper guidance pertaining to publication, which can be used from time to time. Government departments: Different government departments have different data, which are not available in libraries. But these are very useful for understanding various aspects of the economy. The researchers can utilize them for the purposes of their researchers. Commercial data: There are several institutions and companies, which purchase and sell marketing information and data. Some of the companies are solely engaged in marketing research. They collect information and data directly from field surveys. Some such companies collect and process the secondary data and supply them to their subscribers.
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The Audit report identified and prioritized recommendations in six key areas:
1. General HR Structure 2. Policies and Procedures. 3. Employee life cycle (Attraction, Recruitment, Hiring, Orientation, Termination) 4. Performance evaluation and Training. 5. Compensation and Benefits Administration. 6. Employee communication The HR Audit was delivered to the company?s management team as a detailed report and then presented to the executives in a summary format. It included a number of recommendations to improve their ability to attract and retain talent. Human Resource Audits or used to evaluate HR policies and practices. An audit can help to evaluate the effectiveness of programs and services. The delivery of these programs and services by HR and opportunities to enhance, change or remove programs and processes. An Audit is used to determine what processes are strong, what processes will need attention. An HR Audit is used to identify problems and find solutions in an attempt to address problems before they become unmanageable. It is an opportunity to assess what an organization is doing right, as well as how things might be done differently, more efficiently or with reduced costs. It can be used to create a plan for development of an HR department?s functions
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HUMAN RESOURCE AUDIT ENTAILS:
1. Legal compliance.
There are litanies of local, state and federal regulations governing how a company operates. These laws vary by the number of employees a company has from 1 to 1,000or more. To maintain legal compliance and avoid penalties, companies need to be aware of what the regulations are and how they impact the organization. Strategic HR inc. can assist with your Legal Compliance by: Conducting a human resources audit to determine compliance and areas for improvement Conducting investigations for potential harassment situations Developing or updating policies to ensure compliance with legislation
2. Compensation/Salary Administration
Total compensation includes not only direct pay but also indirect compensation including insurance and retirement benefits and time off programs. The Texas Legislature sets eligibility requirements for these benefits and programs, based on the definition of regular employee. Regular employee is one who is listed in the position identification database for 50 percent or more time for at least four and one-half months, excluding students employed in positions that require student status as a condition for employment. Specific eligibility requirements for various programs appear in the appropriate policies and regulations. Each CEO shall establish and communicate salary administration rules, procedures and pay plans for all categories of positions, except Board-appointed positions, existing in his/her component. These rules and pay plans should address internal equity, objective and fair treatment, competitiveness with the appropriate external
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markets, and compliance with appropriate federal and state laws. Pay plans must interface with the Budget/Payroll/Personnel (B/P/P) system design.
3. Employment/Recruiting
Employee recruitment forms a major part of an organization's overall resourcing strategies, which identify and secure people needed for the organization to survive and succeed in the short to medium-term. Recruitment activities need to be responsive to the ever-increasingly competitive market to secure suitably qualified and capable recruits at all levels. To be effective these initiatives need to include how and when to source the best recruits internally or externally. Common to the success of either are; well-defined organizational structures with sound job design, robust task and person specification and versatile selection processes, reward, employment relations and human resource policies, underpinned by a commitment for strong employer branding and employee engagement and on boarding strategies. Internal recruitment can provide the most cost-effective source for recruits if the potential of the existing pool of employees has been enhanced through training, development and other performance-enhancing activities such as performance appraisal succession planning and development centers to review performance and assess employee development needs and promotional potential. Increasingly, securing the best quality candidates for almost all organizations relies, at least occasionally if not substantially, on external recruitment methods. Rapidly changing business models demand skill and experience that cannot be sourced or rapidly enough developed from the existing employee base. It would be unusual for an organization to undertake all aspects of the recruitment process without support from third-party dedicated recruitment firms. This may involve a range of support services, such as; provision of CVs or resumes, identifying recruitment media, advertisement design and media placement for job vacancies, candidate response handling, short listing, conducting aptitude testing, preliminary interviews or reference and qualification verification. Typically, small organizations may not have in-house resources or, in common with larger organizations, may not possess the particular skill-set required to undertake a specific recruitment assignment. Where requirements arise, these are referred on an ad hoc basis to government job centers or commercially run employment agencies. Except in sectors where high-volume recruitment is the norm, an organization faced with sudden, unexpected requirements for an
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unusually large number of new recruits often delegate the task to a specialist external recruiter. Sourcing executive-level and senior management as well as the acquisition of scarce or „high-potential? recruits has been a long-established market serviced by a wide range of „search and selection? or „headhunting? consultancies, which typically form long-standing relationships with their client organizations. Finally, certain organizations with sophisticated HR practices have identified there is a strategic advantage in outsourcing complete responsibility for all workforce procurement to one or more third-party recruitment agencies or consultancies. In the most sophisticated of these arrangements the external recruitment services provider may not only physically locate, or „embed?, their resourcing team(s) in the client organization's offices, but work in tandem with the senior human resource management team in developing the longer-term HR resourcing strategy and plan.
4. Orientation:
New employee orientation effectively integrates the new employee into your organization and assists with retention, motivation, job satisfaction, and quickly enabling each individual to become contributing members of the work team. Two questions need to be answered in regards to the orientation of a new employee: 1. Who will orientate the new employee? 2. What should be covered during orientation? One person should be in charge of handling orientation. Generally, this will be the owner/operator; however, on large farm operations, another employee may specifically be responsible for orientating all new employees. Having just one individual in charge of orientation ensures a consistent message to new employees. The orientation of a new employee can involve several people even though one person has overall responsibility. Information covered will change from farm to farm, but a basic core of material should be discussed with the new employee, including such specific characteristics of the farms layout of operation, other employees, history, mission, goals, and role of the employee.
This kind of information provides the "big picture" of the farm to the employee. Personnel policies including probationary period, disciplinary actions,
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work schedule, safety rules, and use of equipment also need to be covered. New employees are always interested in their benefits. Items such as pay, pay day, vacation, sick leave, and other benefits should be covered. Discuss specific responsibilities the new employee will be assigned, how the job relates to other work on the farm, and safety rules. Finally, be sure to introduce the new employee to the farm management team, including family members and other employees. It is helpful to develop an employee handbook so policies and benefits can be accessible and clear to both employer and employee. Answer all of the immediate questions that the new employee might have. It is important to develop open, two-way lines of communication between the employer and employee right from the beginning. Consider the time spent for orientation as an investment for both you and the employee. Clear, well-defined expectations will pay dividends and reduce possible misunderstandings between employer and employee. By orientating the new employee properly, a smooth transition can be made to the next step--training. Orientation can make the difference in your employee feeling part of you "team" or not. Proven benefits of an effective orientation are: ? Better understanding of job functions ? Higher level of motivation ? Improved learning curve ? Improved employee retention rate Ultimately improved productivity for the organization Human Resource Management Services conducts an employee orientation session for new state employees at the beginning of every month. Following are some of the topic son which new employees are briefed: ? Health Plan ? Retirement Benefits ? Life Insurance Options ? Flex Comp Plan
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? Employee Assistance Program ? Sexual Harassment ? Americans with Disabilities Act ? Holidays ? Annual, Sick, Family Medical, and Funeral Leave ? Personnel Records ? Drug-Free Workplace ? Conflict of Interest ? Alternative Dispute Resolution
The appointing authority or supervisor has responsibility to orient the new employee on: ? Job duties, responsibilities, and expectations or goals ? Probationary period ? Hours of work and FLSA status ? Agency and/or work unit policies ? Employee Assistance Program ? Safety issues ? Agency mission and organization
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It is the responsibility of the agency payroll clerk or human resource officer to cover the following topics: ? Payroll information and completion of forms ? Insurance, retirement, and flex comp benefits and completion of forms ? Other benefits such as leave, holidays, etc .
The wealth of information to be learned in a new environment can be overwhelming for a new employee. The purpose of the orientation program is to provide the employee with the information to make those first days of new employment easier. The following guidelines will help make the orientation for a new employee successful: ? Focus on the job and those aspects that are most important, such as the dayto-day events that an employee needs to know to get up to speed and be a part of the team. Don?t explain everything about the agency on the first day. Those types of things can be learned over time. ? Pull together a set of orientation materials including work unit and/or agency organizational charts, an employee handbook, job description, information on benefits etc. ? The supervisor should follow up with the employee on a regular basis to monitor how the employee is doing and the effectiveness of the orientation.
5. Terminations:
Termination of employment is the end of an employee's duration with an employer. Depending on the case, the decision may be made by the employee, the employer, or mutually agreed upon by both. Employees leave your organization for good reasons and bad reasons. On the positive side, they find new opportunities, go back to school, retire or land their dream job. Less positively, they are fired for poor performance or poor attendance or experience a layoff because of a business
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downturn. In each instance, youneed an employment termination checklist to help the employee exit process go smoothly. Here?s a sample employment termination checklist. There are two types of terminations inhuman resource management.
Voluntary termination Voluntary Termination is a decision made by the employee to leave the job. Such decision is commonly known as "resignation," "quitting," "leaving," or" giving
Notice."Some common reasons for voluntary termination include: ? Personal dissatisfaction with job, employer, hours, or working conditions, or in more severe cases, burnout. ? Factors in employee's personal life not related to the job that makes holding or performing the job impossible or more difficult. These may include family obligations, education, health, or moving to a new location. ? Hire at a new job. Reasons for wanting a different job may be better working conditions, better hours, a shorter distance to work, better pay, graduation, career progression or preparation for entry into a new career, or a career change ? Feared or anticipated involuntary termination. The employee may wish to take matters into his/her own hands in order to leave more honorably. This is also known as mutual consent in some parts. ? Retirement. This may be as a result of the employee's age (which may vary, depending on job type and benefits available following retirement) or else an injury, disability, or other medical condition forcing early retirement. Depending on the employee's reason, comfort with the employer, and dedication to the job, voluntary termination may be sudden and abrupt without warning to the employer, or with a certain amount of notice given. Generally, employers prefer that a departing employee provide at least some notice to the employer, often at least two weeks, this often called a two-week notice. Those in
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compliance with this requirement are more likely to be rehired by the same employer in the future, to receive their full benefits from the employer, and to get a better reference for future employers.
Involuntary termination Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being "fired" and "laid off." To be fired, as opposed to being laid off, is generally thought of to be the employee?s fault, and therefore is considered in most cases to be dishonorable and a signoff failure. Often, it may hinder the new job-seekers chances of finding new employment, particularly if he/she has been fired from earlier jobs. Job-seekers sometimes do not mention jobs which they were fired from on their résumés; accordingly, unexplained gaps in employment and refusal to contact previous employers are often regarded as red flags.
Dismissal Dismissal is the employer's choice to let the employee leave, generally for a reason which is the fault of the employee. The most common colloquial term for dismissal in America is being fired whereas in Britain the term 'getting the sack' is used.
Layoff:
A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). A layoff is usually not strictly related to personal performance, but instead due to economic cycles or the company?s need to restructure itself, the firm itself is going out of business, or due to a change in the function of the employer (for example, a certain type of product or service is no longer offered by the company, and therefore jobs related to that product or service arena longer needed). One type of layoff is the aggressive layoff. In such a situation, the employee is laid off for a just cause, but not replaced as the job is eliminated. In a postmodern risk economy, such as that of the United States, a large proportion of workers may be laid off at some time in their life, and often for reasons unrelated to performance or ethics. However, employment termination can also result from a probation period, in which both the employee and the employer reach an agreement that the employer is allowed to lay off the employee if the probation period is not satisfied.
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Often, layoffs occur as a result of "downsizing", "reduction in force" or "redundancy”. These are not technically classified as firings; laid-off employees jobs are terminated and not re-filled, because either the company wishes to reduce its size or operations, or otherwise lacks the economic stability to retain the position. In some cases, a laid-off employee may be offered a re-hire by his/her respective company, though by this times/he may have found a new job. Some companies resort to attrition (voluntary redundancy in British English) as a means to reduce their workforce. Under such a plan, no employees are forced to leave their jobs. However, those who do depart voluntarily are not replaced. Additionally, employees are given the option to resign in exchange for a fixed amount of money, frequently a few years of their salary. Such plans have been carried out by the United States Federal Government under President Bill Clinton during the 1990s and by the Ford Motor Company in 2005. However layoff may be specifically addressed and defined differently in the articles of a contract in the case of union work.
Termination by mutual agreement
Some terminations occur as a result of mutual agreement between the employer and employee. When this happens, it is sometimes debatable if the termination was truly mutual. In many of these cases, it was originally the employer's wish for the employee to depart, but the employer offered the mutual termination agreement in order to soften the firing (as in a forced Resignation). But there are also times when a termination date is agreed upon before the employment starts (as in an employment contract). Some types of termination by mutual agreement include: ? The end of an employment contract for a specified period of time (such as an internship) ? Mandatory retirement. Some occupations, such as commercial airline pilots, face mandatory retirement at a certain age. ? Forced resignation
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6. Training and Development:
Training and Development is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format.
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVELOPMENT
Traditional Approach – Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth. Organizations used to believe more in executive pinching. But now the scenario seems to be changing. The modern Approach of training and development is that Indian Organizations have
TRAINING AND DEVELOPMENT OBJECTIVES
The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. ? Individual Objectives – Help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. ? Organizational Objectives – Assist the organization with its primary objective by bringing individual effectiveness. ? Functional Objectives – Maintain the department?s contribution at a level suitable to the organization?s needs. ? Societal Objectives
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– Ensure that an organization is ethically and socially responsible to the needs and challenges of the society.
7. Employee Relations
Welcome to the Employee Relations division of the Office of Human Resources Management. The company is committed to promoting a productive and positive work environment for all of its employees. In support of this, the office of Employee Relations offers a variety of services. ? Consulting with individuals and departments to foster positive and productive work environments ? Providing coaching and training regarding the company?s performance management system. ? Advising and training departments on corrective actions and administering the company?s progressive disciplinary process. ? Advising individuals and departments on matters and policies related to employee relations and employee rights. ? Supporting the campus community through administrative processes including disputes, grievances, charges, and appeals related to various employee relations issues. ? Investigating and resolving complaints and charges of discrimination, sexual harassment, retaliation or other work related complaints. ? Providing conflict resolution options including: facilitation, mediation and training.
If you need to discuss a matter with Employee Relations staff, confidentiality will be maintained to the extent possible. Some issues may require further investigation or consultation with other campus departments. In such cases, information wills only be shared with other individuals on a need-to-know basis.
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The Employee Relations Discipline concerns the relationship of employees with the organization and with each other. It includes the processes of developing, implementing, administering and analyzing the employer-employee relationship; performing ongoing evaluation of it; managing employee performance; ensuring that relations with employees comply with applicable federal, state and local laws and regulations; and resolving workplace disputes. It also includes matters that focus on HR careers, communications, legal and regulatory issues, technology, metrics and outsourcing in the employee relations field, as well as effective employee relations practices and global employee relations issues. It does not include matters involving union organizing, union elections, collective bargaining and ongoing union-management relations, which are encompassed in the Labor Relations Discipline.
8. Communications
If the company is involved in employee communication then they already know that one of the most important aspects of employee communication today is measurement. But so much of that measurement is focused on whether employee?s access the tools organizations use to communicate with them. The company knows that the questions such as do they read the newsletter, do they access the corporate blog, and do they find the information sessions interesting. None of these questions prove that the employee communication tools measure engagement which is what every CEO wants to know. There is one key reason that the companies are measuring the acceptance of communication tools, not measuring employee communication strategy. So here's what the companies do. ? Every organization conducts market research surveys. These surveys typically measure customer satisfaction levels across services and products provided by your organization. Sometimes they even ask questions about competitor products and services. Organizations then take that information and work towards improving the rating they received by introducing improvements to services, products and information. ? Typically the result demonstrates disparity between what customers think and what employees think customers think. Once you have the difference measured between perception and reality then you have the opportunity to
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commence dialogue about with your employees about what customers really think. Most importantly it allows you to design employee communication strategies specifically to target that business issue. So now you have a business and know the key messages for your employee communication strategy. ? One year on when the customer survey is conducted, you ask the same questions and again do the same with the staff survey. What you seek to find is that the measure of the perception staff have of what customers think and what customers actually think have moved closer together and towards the organizations desired outcome. This becomes your business measure of whether you have engaged employees. ? This information is important because your ultimate aim in employee communication has to be to create the "Aha Moment". The Aha Moment is based on information that challenges the employee's belief about an aspect of the business. The information that suddenly helps employees say, "Now it makes sense", "Now I understand", "Now I can do something about it". It is only once you see this gap close between what customers actually think about an issue and what employees think the customer thinks that you have a measure that demonstrates your employee communication engagement strategy has been successful. If the gap still exists then the design of your employee communication strategy is flawed in some way. Finally, it is important that we measure employee communication tools such as readership of our staff magazine, access of our intranet and other tools. However the only way to impact perceptions of the value that the employee communication function contributes to an organization is to measure engagement strategies against business outcomes.
This approach to measurement is low cost. The investment in the human resources staff survey and the marketing departments' customer research is already locked in. You are simply adding 10 questions to the end of the human resources survey based on the marketing questions. The engagement strategies are generally low cost because they involve people, not tools. By this I mean that employees are involved in doing something differently to bring about change in an organization. The staff newsletter another information tools already exist; all you do is tailor the articles to reflect the main focus of your employee engagement strategy. This low
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cost yet highly effective approach will ensure that you can measure your employee communication strategies against business outcomes.
9. Files/Record maintenance technology
The university uses and maintaining a records management system that is secure from unauthorized access, damage and misuse. The system captures and supports records that are accurate, authentic, accessible, useable, retained, and regular operation and is managed in compliance with all requirements arising from current business processes, the regulatory environment and community expectations. The record management system: ? Routinely captures all records within the scope of the business activities of Griffith University: ? Organizes the records in a way to reflect the business processes of the record?s creator ? Protects the records from unauthorized alteration or disposition ? Routinely functions as the primary source of information about actions that are documented in the records: and ? Provides ready access to all relevant records and related metadata.
Control measures, such as access monitoring, user verification authorized destruction and security are implemented to prevent unauthorized access, destruction alteration or removal of records. 10. Policies and procedures (including employee hand book) Policies, handbooks and procedures provide guidance for fair and consistent staff treatment. They are most useful when applied as guidelines rather than as rules and laws. Straight-forward, clear and concise HR policies and job descriptions are important for a number of reasons. Failing to implement policies and job descriptions leaves your company open to legal challenges, grievances and
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lawsuits, especially if you inconsistently apply your human resources policies and your pay structure/system.
Grievances and lawsuits lead to: ? Increased costs that affect your profits ? Increased turnover ? Negative morale
Your company will avoid these problems if you implement hr policies, procedures and job descriptions and you can easily do this if you download our sample job descriptions and hr policies. Your company needs human resources policies and procedures and current job descriptions so that your staffs are treated equally across a variety of employment issues. In addition, human resource polices help if legal situations arise. Our products and services are ideally suited for: ? Small Business Owners ? Managers ? HR Professionals ? HR Consultants ? Lawyer?s
Small businesses often scramble for resources when compiling staffing information, contracts, developing HR policies and procedures and writing job descriptions. In addition, many large companies have dated policies, procedures and job descriptions that no longer reflect the reality of today's business world.
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Companies looking for fresh ideas and a fresh start to can find what they are looking for with our sample hr policies and sample job descriptions.
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doc_930499895.docx
personal file audit
OVERVIEW OF FUTURE GROUP:
Every day, Future Group brings multiple products, opportunities and services to millions of customers in India. Through over 15 million square feet of retail space, we serve customers in 85 cities and 60 rural locations across the country. Most of all, we help India shop, save and realize dreams and aspirations to live a better quality of life every day. Future Group understands the soul of Indian consumers. As one of India?s retail pioneers with multiple retail formats, we connect a diverse and passionate community of Indian buyers, sellers and businesses. The collective impact on business is staggering: Around 220 million customers walk into our stores each year and choose products and services supplied by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. And this number is set to grow. Future Group employs 35,000 people directly from every section of our society. We source our supplies from enterprises across the country, creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth. We believe in the „Indian dream? and have aligned our business practices to our larger objective of being a premier catalyst in India?s consumption-led growth story. Working towards this end, we are ushering positive socio-economic changes in communities to help the Indian dream fly high and the ‘Sone Ki Chidiya’ soars once again. This approach remains embedded in our ethos even as we rapidly expand our footprints deeper into India.
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FUTURE GROUP’S BELIEFS:
Future Group was founded on a simple idea: Rewrite rules, retain values. This fundamental belief created a new kind of marketplace, forever transforming Indian retail. Today our core values continue to guide how we do business and improve the quality of life of the people we serve. At Future Group we are committed to being a catalyst of positive change in the communities, societies and business sectors in which we operate. We envision India?s transformation into the legendary 'Sone Ki Chidiya' (golden bird), taking wings once again to reach greater heights. We take pride in our Indianness. Our belief in inclusiveness for long-term sustainable growth and economic prosperity evokes trust among consumers, employees, suppliers, partners, shareholders and the community.
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Vision, Mission and Values of Future Group:
1. VISION:
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?
? ? ?
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. 2. VALUES: ? Indianness: Confidence in ourselves. : To be a leader, both in thought and business. & Humility: To respect every individual and be humble in our conduct. : Leading to purposeful thinking. : to be open and receptive to new ideas, knowledge and information. and Nurturing Relationships: To build long term relationships. & Positivity: Simplicity and positivity in our thought, business and action. : To be flexible and adaptable, to meet challenges. : To respect and understand the universal laws of nature
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LEADERSHIP TEAM:
KISHORE BIYANI FOUNDER AND GROUP CEO, FUTURE GROUP. Considered a pioneer of modern retail in India, Kishore?s leadership has led the group?s transformation into India?s leading player in the consumption sector. Regularly ranked among India?s most admired CEOs, he is the author of the book „It Happened in India?. He has won multiple awards from government bodies and the private sector in India and abroad and is on the board of a number of bodies, including the National Innovation Foundation in India and New York Fashion Board. In a career spanning over 18 years, Anshuman has worked in all aspects of the value chain across several industry segments such as Discrete Manufacturing, Durables, Textiles, Retail and Supply Chain with companies like Grasim, H&R Johnson, Bombay Dyeing, and We spun Retail. He is responsible for starting the first Home Furnishings Specialist Retail Chain in the country in his last assignment as the Director and CEO of Wels pun Retail Ltd. before rejoining Future Group where he created Future Supply Chains Ltd. Anshuman is a Mechanical Engineer and an MBA. A Chartered Accountant by training, Anand has nearly 20 years of experience in corporate finance and banking across diversified business groups. Before joining Future Group, he was President-Corporate Finance, Vedanta Resources Group. He has been associated with Motorola India, Credit Lyonnais, HSBC, IL & FS and Citibank. An alumnus of IIT Mumbai and IIM Bangalore, Damodar has over two decades of experience in the FMCG and food industry. He was a co-founder of D?Mart, a supermarket chain in Western India, and was associated with Unlived in India. Co-founder of the Color plus brand, Kailash has over three decades of valuable experience in the fashion business and is considered to be a stalwart in the Indian fashion industry. Before joining Pantaloon Retail, he was associated with Weekender, Arvind Mills and Mafatlal Industries, among other companies.
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CONTD….
International, H&R Johnson and Motilal Oswal Private Equity Advisors. He has previously worked as Group CFO with Pantaloon Retail.
Sanjay has over two decade of experience in working with a wide range of companies in the services sector in India and abroad. A post-graduate from Pune University, he joined Future Group in July 2005. Before this he worked with companies like DHL Limited, Indian Hotels Group, Bharti Enterprises and RPG Enterprises.
An alumnus of IIM Ahmadabad, Santosh has over two decades of experience in advertising. He was President of McCann-Erickson, India prior to his association with Future Group. A highly respected figure in the advertising and marketing community in India, Santosh is a columnist with the Times of India and several other publications and has addressed the global management boards of several multinationals, including Hershey?s, Microsoft, Philips, Unilever, Coke etc. He is also the author of the book „Mother Pious Lady – Making Sense of Everyday India?.
An entrepreneur in his own right and an urban developer, Sumit has 21 years of corporate experience with significant exposure to the real estate sector. Before joining Future Group, he was on the Board of Directors of Calcutta Metropolitan Group and Riverbank Holdings. He has served as a Member of Infrastructure Council in CII, Infrastructure Sub-Committee Chairman, Regional Council Member and Core Group Retail Chairman in CII (Eastern Region), and as an Infrastructure Committee Member, Executive Committee Member, and Chairman of Young Leaders Forum in the Indian Chamber of Commerce.
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STRATEGY USED BY FUTURE GROUP:
A new normal is being defined in the Indian consumer market every day. With far-reaching socio-economic changes that India has undergone in the last decade, the drivers in urban and rural India are maturing fast. With a growth strategy tempered with localization and an inclusive business model, Future Group is the only pure play local retailer poised to lead India?s consumption story with sustainable value creation. Our multi-format retail strategy captures almost the entire consumption basket of Indian customers. As modern retail drives new demand, efficiency and consumption in new categories, our strategy is based on our deep understanding of Indian consumers. We understand the varied buying behavior of the Indian consumer across regional ethnicities and are constantly innovating to craft strategies that address the subtle differences. Future Group's strategy is aimed at achieving inclusive, sustained and profitable growth with three levels: Customer-orientation: The bottom line in each of our retail success stories is "know your customer". Insights into the soul of Indian consumers - how they operate, think, dream and line - helps us innovate and create differentiating functionally. Continuous-innovation: As India's largest retailer, we understand the importance of innovation. We rethink strategies and realign businesses with increasing agility to provide diverse customer groups with refreshingly different retail experiences. Collaborative transformation: Creating a collaborative environment combining our strengths with our suppliers and vendors helps us create immense value for our customer which in turn fosters mutual growth.
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CONTD….
We believe that modern Indian retail rests on the strength of two pillars – scale and efficiencies. As front-runners in both areas, we firmly believe our core responsibility lies in providing protection to customers from the overall rate of inflation. While the scale and size of our operations helps us improve efficiencies, it also ensures we deliver greater value to our customers.
Our retail thrust is focused on four principal verticals of Food, Fashion, General Merchandise and Home. These four categories together account for nearly 65% of the consumption in the country and represent mass consumer aspirations. Acknowledging this, we are creating retail pure play through divestment and demerger of non-retail businesses to concentrate our efforts on these verticals.
India?s retail boom is being driven by resurgence in the economy. Modern retail still has around 6% share of the total retail spend in the country that is estimated at around US $ 400 billion. Thus, the potential for modern retail growth in India is huge. Currently, leading retailers in mature markets occupy the top three slots by turnover, employment and value creation. As the Indian economy matures, it is upon us to make the same happen in our country.
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CURRENT AND PAST SCENARIO AT FUTURE GROUP…. “MILESTONES”
25 years ago, we began our pioneering journey transforming the Indian retail landscape, whole-heartedly believing in rewriting rules and retaining values. Today, our deep footprint across India and landmark growth is testament to our enduring values. 2011
? ?
April 2011 – KB?s Fairprice celebrates opening its 200 stores in India May 2011 – Future Supply Chains becomes ISO certified
2010
? ? ?
Future Group launches its telecom brand T24 in partnership with Tata Teleservices to provide additional loyalty benefits to its customers. Future Group launches products in key FMCG categories through Sachin, a brand co-created with Sachin Tendulkar. Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers.
2009
? ? ?
Future Group celebrates its first Shopping Festival across all retail formats in key Indian cities. Future Innoversity starts its campuses in Ahmadabad, Bangalore and Kolkata to offer degree programs through a tie-up with IGNOU. Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply chain and logistics network across the country.
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2008
? ? ? ?
Future Capital Holdings becomes the second group company to make a successful Initial Public Offering (IPO) in the Indian capital market. Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format anywhere in the world. Total operational retail space crosses the 10 million square feet mark. Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a presence in 65 rural locations.
2007
? ? ?
?
Future Group crosses the $1 billion turnover mark. Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year award at USbased National Retail Federation convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona. Online portal Futurebazaar.com becomes India?s most popular shopping portal.
2006
? ?
? ?
Future Capital Holdings, the group?s financial arm, is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Home Town, the home building and improvement products retail chain, is launched along with consumer durables format Ezone and furniture chain Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance products with Italian insurance major Generali. Future Group forms joint ventures with US office stationery retailer Staples.
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2005
? ?
Future Group moves beyond retail and acquires a stake in Galaxy Entertainment, Indus League Clothing and Planet Retail. Future Group sets up Kshitij, India?s first real estate investment fund, to build a chain of shopping malls.
2004
?
Future Group launches India?s first seamless mall, Central, in Bangalore.
2002
?
Food Bazaar, the supermarket chain is launched.
2001
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Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore and Hyderabad.
1997
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Future Group enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata.
1995
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Future Group launches John Miller, a brand for Formal shirts.
1994
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The Pantaloon Shoppe, Future Group?s exclusive menswear store in a franchisee format is launched across the nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.
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1992
?
Pantaloon Retail India Ltd makes an Initial public offer (IPO).
1991
?
BARE, an Indian denim brand is launched.
1987
? ?
The company is incorporated under the name of Manz Wear Private Limited. Pantaloons, one of India?s first formal trouser brands, are launched.
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FUTURE THOUGHT OVERVIEW:
Retail leadership in India through innovation and transformation. Future Group offers new ways of thinking about retail and consumerism in India. We believe Retail must take the lead in renewing our economic growth trajectory. Leveraging the experience and insights gained in pioneering retail in India, we have developed a deeper understanding of the evolution of modern Indian retail and its role in driving sustainable economic growth. At Future Group, we believe in channelizing our energies to research-based innovation for generating value and delivering better experiences to customers. We are focused on achieving sustainable business performance through the synergy of customers, communities and partners by ongoing learning, unlearning and adaptation. Our thinking delivers business value in 3 ways
Knowing India the Indian way.
? ?
Embracing Indianness to conduct business across various socio-economic and demographic segments Integrating the traditional approach into modern-day retail to identify critical customer-value levers and game-changing trends in Indian retail
Driving Inclusive Growth.
? ?
Thriving in an ecosystem that facilitates collaboration and inclusive growth as a sustainable economic growth model for India Creating fresh employment, impacting livelihoods, empowering local communities and fostering mutual growth
Accelerating Innovation.
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Driving innovation with solutions that reconcile the interests of our business, the environment and other stakeholders Leveraging powerful research as a co-creation engine to harness consumption opportunities created by emerging urbanization and lifestyle trends
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“INTRODUCTION TO HUMAN RESOURCE AUDIT”
A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to ensure compliance with ever-changing rules and regulations. An Audit involves systematically reviewing all aspects of human resources, usually in a checklist fashion. Sections of review include:
? ? ? ? ? ? ? ?
Hiring and Orientation Benefits Compensation Performance evaluation process Termination process and exit interviews Job descriptions Form review Personnel file review
The purpose of an HR Audit is to recognize strengths and identify any needs for improvement in the human resources function. A properly executed Audit will reveal problem areas and provide recommendations and suggestions for the remedy of these problems. Some of the reasons to conduct such a review include:
? ? ? ? ? ?
Ensuring the effective utilization of the organization?s human resources Reviewing compliance concerns with a myriad of administrative regulations Instilling a sense of confidence in management and the human resources function Maintaining or enhancing the organization?s and the department?s reputation in the community Performing “due diligence” review for shareholders or potential investors/owners Establishing a baseline for future improvement for the function
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Because of the multitude of laws affecting each stage of the employment process, it is extremely important for an employer to regularly review their policies and practices to ensure regulatory compliance in order to avoid potentially costly fines and/or lawsuits. An employer overlooking regulatory compliance with their human resource practices could face:
?
?
?
A fine of $1,100 for any violation of the appropriate payment of overtime for non-exempt employees in accordance with the Fair Labor Standards Act. Penalties as high as $10,000 each occurrence for failing to post required safety notices or keeping accurate records. Fines up to $1,000 per employee for non-compliance with the Federal Immigration Reform Act.
While penalties such as these help define the risk of non-compliance and signify the importance of conducting periodic HR Audits, an Audit can also ensure that policies and procedures are fair and consistent across the organization and strengthen employee satisfaction. By maintaining a satisfied and productive workforce, an employer lessens the expense associated with costly turnover of staff. Losing one employee is estimated to cost a company 50 – 150% of the lost
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INTRODUCTION OF THE STUDY:
HR Audit refers to an examination and evaluation in policies, procedures and practices to determine the effectiveness and efficiency of Human Resource Management. It determines what should or should not be done in the future as a result of such measurement. It measures the mission, objectives, strategies, policies, procedures, programs, and activities of HRM. It is used to evaluate the performance of the personnel staff and employees. By performing this task, we can know the actual performance of the company. The company which is performing certain HR activities will direct to attaining their objectives. HR audit will identifies the errors and it devices a solution for their. It is a mandatory task by an organization, if they want to develop their HRM in future. It verifies all the activities which are undergoing in the organization and identifies the errors to give a proper solution. It reflects the organization for the development of HRM in future. By undergoing HR audit regularly in reorganization the efficiency levels of the personnel staff and employees will improve. An HR Audit should be done once in 6 months, so that the organization will be effective. It rectifies the problems and errors which have been arrived in the organization. It certainly reduces the errors and makes an effective HRM. My personal reason for taking this project is by doing HR Audit we can know the overall performance of the organization. It clearly explains the things “what should be or should not be done, what are the things should (or) should not be done for attaining development in both employee and managerial point of view HR Audit is very important task to know their efficiency of HR Activities. Among all the topics of HRM, HR Audit plays a vital role in the organization. The reasons for taking this project are 1. It evaluates the performance of personnel staf f and employees. It determines the performance of the employees. From the basis of their results, we can do Performance Appraisal. 2.It rectifies the problems (or) errors arise in the organization and the employees need motivation to develop themselves. What type of motivation can be known by making HR Audit. 3.HR Audit examines the entire HR department and all HR Activities. So, we can gain knowledge of all the activities undergone.
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4.HR Audit is involved with all the HR Departments, so we can know the levels of employee job satisfaction levels by making interaction with them through questionnaire. So, HR Audit is linked with all the necessary HR Activities. By selecting one topic (or) HR Activities, we can gain knowledge about that topic itself. But, by doing HR audit we can gain knowledge about all the HR Activities.
HR Audit results in gaining the overall knowledge of HRM in the organization. It is very important for the organization to know their efficiently of HRM. It results to gain knowledge from the manager and manager?s point of view. HR Audit is a mixture of all activities in every point of view. By making HR Audit, we can know about whole HRM briefly rather than going for taking one topic and know about that
NEED OF HUMAN RESOURCE AUDIT:
The need of the audit is to reveal the strengths and weaknesses of the organization to solve their problems. This audit helps us to know the opinions of the employee?s towards the organization in which they are working. The organization can identify and solve the problem of the employees to achieve their goals. By studying this topic, we can know the overall knowledge about HRM in an organization.
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OBJECTIVES OF HUMAN RESOURCE AUDIT:
Before beginning an HR audit, the senior management team must decide on the overall objective of the proposed audit. For example, senior management may have noticed a turnover trend among employees that is excessively high for the industry in which it does business. One objective may be to evaluate the human resource function with respect to employee retention. The senior management team decides the overall objective or purpose for the audit, which may be singular or multipronged.
SCOPE:
The scope defines the breadth of the HR audit. This step determines the individual areas for review and provides a guideline for the group or business conducting the audit. This may include requiring a review of HR compliance with federal and state laws, the human resource information systems, the department's service and management roles as well as any strategic HR programs in place for company personnel.
ADVANTAGES:
Because employees play a vital role in a company's success, it is important for senior management to understand and know how well its human resources department functions. The department is associated with recruitment, training and development and retention of a company's employees; it also manages and oversees employee compensation and benefits, programs, services, employee performance, labor relations and job design. Understanding the effectiveness of a human resources function helps management discover the top practices relevant to the industry and what steps it might need to take within the human resources function to help the company achieve its business goals and objectives.
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APPROCHES TO HR AUDIT:
There are five approaches for the purpose of evaluation of HR in any organization: 1. Comparative approach 2. outside authority 3. Statistical 4. Compliance approach and Management by Objectives (MBO) 1. Comparative approach: In this, the auditors identify Competitor Company as the m o d e l . T h e results of their organization are compared with that of the M o d e l Company/ industry. 2. Outside authority approach: In this, the auditors use standards set by an outside consultant as benchmark for comparison of own results. 3. Statistical approach: In this, Statistical measures are performance is developed Considering the company?s existing information. 4. Compliance approach: In this, auditors review past actions to calculate whether t h o s e activities comply with legal requirements and industry p o l i c i e s a n d procedures. 5. Management by objectives (MBO) approach: This approach creates specific goals, against which performance can be measured, to arrive at final decision about industry?s actual performance with the set objectives.
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SCOPE OF HR AUDIT:
Generally, no one can measure the attitude of human being. Hr audit must cover the activities of the department and extend beyond because employees? problems are not c o n f i n e d t o t h e H R d e p a r t m e n t a l o n e . S o i t i s v e r y m u c h b r o a d i n n a t u r e . I t s h o u l d evaluate the personnel function, the use of its procedures by the managers and the impact of these activities on the employees. It covers the following HR areas: 1. Audit of all the HR function. 2. Audit of managerial compliance of personnel policies, p r o c e d u r e s a n d l e g a l provisions. 3. Audit of corporate strategy regarding HR planning, staffing, IRs, remuneration another HR activities. 4. Audit of the HR climate on employee motivation, morale and job satisfaction.
The HR audit has a very wide scope. It assumes that the management of human resources involves much more than the practice of recruiting, hiring, retaining and firing employees. It examines the concept of 'people management' by supervisors at all levels. It covers areas like HR philosophy, policies, programmers, practices and personnel results. The National Industrial Conference Board of the United State states, "The top management is interested in auditing all the programmers? relating to employees, regardless of where they originate, or the channels through which they are administered". The major areas of HR audit include:
? ? ? ?
programming, forecasting and scheduling to meet organization and personnel needs Areas of recruitment, selection, careers, promotions, training and development Areas of leadership, welfare, grievances, performance appraisal, employee mobility, and industrial relations.
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BENEFITS OF HR AUDIT:
1. Identification of contributions of HR department 2. Improvement of professional image of HR department 3. Encouragement of greater responsibility and professionalism among HR members 4. Clarification of HR duties and responsibilities 5. Stimulation of uniformity of HR policies and practices
6. Finding critical personnel problems 7. Ensuring timely compliance with legal requirements 8. Reduction of HR costs through more effective personnel Procedures 9. Creation of increased acceptance of changes in HR department 10. A thorough review of HR information systems
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1. DOSSIER AUDIT AT FUTURE GROUP
The project undertaken by me in Future Group was HR Audit, which is followed by dossier audit. Future Group is maintaining Dossier of every employee who is working with the group. Basically dossier is the documentation file of every employee. Which company has to maintain for the backup of the record. This is a very good process undertaken by future group as it gives whole information of the employee at one glance itself. When a employee joins a firm company provides some important documents to the employee, which the employee has to keep in their respective dossiers. There is the regular check on the documentation of all the employees. Dossier is basically the checklist of all the documents. The Dossiers includes: 1. Employee code, Band, Designation, Date of Joining. 2. HR verification signature 3. Employee photograph 4. Code of conduct 5. Employee joining report 6. PF. Form no.2 7. Gratuity form 8. ESIC form 9. Appointment letter 10. Offer letter 11.Confirmation letter 12. Last increment letter 13. Address proof 14.Education documents 15. Photo ID proof.
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2. Employee manual at Future Group:
Job descriptions – how you write them and what duties each role performs Recruitment and selection – the process you follow to hire and reference check an employee New employee welcome and employee induction process – how you welcome new employees into your business and the process you use to ensure they know the rules of your business Employee Probation – how you manage an employee probation and what you do if you don't confirm the probation Rosters and hours of work – how rosters are developed, what the hours of work are, how to change rosters, overtime, public holidays, time sheets and punctuality Pays & personnel records – when and how pays are made, what is contained on pay slips Staff benefits - Any staff discounts or benefits you offer for goods and services Termination of employment – what happens when someone resigns, is made redundant, abandons their employment or is sacked Travel and expenses – rules and reimbursements around travel in the course of employment Employee Appraisals – the process you use to appraise employee performance Personal Behavior – all of the legal requirements such as anti-discrimination, workplace bullying and harassment, workplace health and safety need to be included here Code of conduct – the minimum acceptable standards of behavior Discipline – How you deal with an employee who breaks the rules Grievances – how you will resolve any grievances from an employee
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WHAT IS AN EMPLOYEE TO ORGANISATION??
? Employees are the most important assets of any organization. ? Employees understand how they can contribute to the effective working of an organisation. ? To appreciate what this means for them, learners should understand the contribution and interdependence of different employee roles in delivering the organisation?s product or service. ? They also need to be aware of the impact of practical, interpersonal and cultural issues on the success of the organisation.. Things explained to employees regarding PROVIDENT FUND Form. ? ? ? ? ? ? ? ? Employee?s Provident Funds Act - 1952 Meaning Objectives Scope of PF Forms: PF nomination at the time of joining PF transfers (both transfers in and transfers out) PF withdrawal Process in depth
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Employee state Insurance.
? ? ? ? ? ? Employee?s State Insurance Act – 1948 Meaning Objectives Eligibility Contribution Contribution period and benefits:
Benefits to the Employees : ESI Act.
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Employees are entitled for benefits in cash and kind which includes: ? ? ? ? ? ? ? Medical Benefit – for Self and family Sickness Benefit - for self Maternity Benefit - for self Disablement Benefit Temporary Disablement Benefit - for self Permanent Disablement Benefit - for self Dependents? Benefit – for dependents in case of death due to employment injury.
In addition, the scheme also provides some other benefits to insured persons such as: ? Funeral Expenses – to the eldest surviving member of the family ? Old age Medicare – for self and spouse ? Vocational Rehabilitation
GRATUITY.
? Payment of Gratuity act – 1972 ? Meaning
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? Objectives ? Examples
Literature review:
This study focuses on the evaluation of human resource management activities using auditing methodology. Human resource auditing is located both within and between each of the fields of human resource management and auditing. This research has two parent disciplines: auditing and human resource management. Auditing is described as an investigative and information processing activity, which evolved in response to the need for independently verified stewardship reports (Parker, Ferris & Oley 1989). Within the discipline of auditing a human resource audit is a functional or activity audit conducted within or across a range of defined auditing types (see section 2.8). A human resource performance audit is one type of audit, generally located within the audit sub-type of operational auditing. Human resource management emerged from traditional personnel management in the 1980s. Traditional personnel management was viewed largely as involving the performance of basic staffing functions, often conducted without regard to other organizational activities and without alignment to organizational objectives. Human resource management as a profession evolved as an extension of the traditional personnel role into a more effective organizational activity. Within the field of human resource management a human resource audit is on method of evaluating or assessing activities. This is not a clear sub-grouping; human resource evaluation is not systemically identified in modern textbooks. However, there is evidence in the literature of the grouping of human resource auditing with other human resource evaluation methods for the purposes of discussion and comparison (CCH 2007). The researcher argues, after an examination of the literature, that a performance audit conducted using the relevant Australian auditing standards could be a suitable method for evaluating the contribution of human resource management activities to current and future organizational goals. The human resource management performance audit methodology is set out in the Australian standards (Australian Auditing Standard „AUS? 806 & 808) and assumes a professional practice
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framework for auditors. These standards can be applied to both public and private organizations (AUSp.4; AUS 808 p.4). A human resource management performance audit is a future orientated examination, designed to add value to an organization. Auditing has identified qualities that separate it from other forms of evaluation. Audit methodology is evidenced based, acceptable to a variety of potential stakeholders and operates within an independent assurance paradigm. The profession of auditing has detailed rules and processes for conducting an audit and these are detailed in the professional practices frameworks adopted by auditors (e.g. IIA 2006a). An accepted definition of human resource auditing has proven to be elusive with many writers either not offering a definition or offering a definition without firmly grounding that definition in auditing. A key construct emerging from the study is that human resource auditing involves the application of auditing theory and practice within the area of human resource management, with the activities to be audited determined by the audit scope. Where the literature on human resource auditing is not grounded in auditing, it is flawed. In particular the requirement for independence is fundamental to auditing. There are also a number of practical issues that occur in human resource management auditing (refer to section 2.14) which need to be understood within the context of the professional practice of auditors. This chapter commences by considering the literature on human resource auditing to uncover key elements of auditing. There is a need to reconcile the literature between the two dominant fields of study to reveal subtle but significant differences in the approach taken by each. The tendency of human resource management writers to confuse the term „auditing? with „review? is highlighted. Key constructs for human resource management auditing emerge and the concept of managerial assurance is firmly separated from independent audit assurance.
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Human resource management The Society for Human Resource Management, based in the United States but worldwide in its focus, describe human resource management on their website as “the formal structure within an organization responsible for all the decisions, strategies, factors, principles, operations practices, functions, activities and methods related to the management of people” (SHRM 2007a). In relation to human resource management it is observed that “every manager is a human resource manager” (Mathis and Jackson 2003 p.5) and that human resource management involves “all management decisions” (Fisher, Schoenfeldt & Shaw 2003), emphasizing that human resource activities can also be undertaken by line managers. Mathis and Jackson (2003 p. 816) define human resource management as: The design of formal systems in an organization to ensure effective use of human talent to accomplish organisational goals. The definition offered by Mathis and Jackson is preferred since it exhibits an outcome orientation: human resource management contributes to the achievement of organizations goals. This definition is adopted for the purpose of this study with an amendment. In the Australian Auditing Standard 806 (Performance Auditing) performance can be evaluated through efficiency, and/or effectiveness and/or economy (see section 2.8). Consistent with that standard the definition adopted is: The design of formal systems in an organization to ensure the efficient, effective and economic use of human talent to accomplish organizational goals. The justification for adopting the revised definition is to clearly identify that the performance auditing standard has three dimensions, described in the auditing literature as “the three E?s” (Craven & McNulty 1994 p.5). Khan (2005) recognizes that the three concepts are overlapping but each provides a contributing insight when considering performance.
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Strategic human resource management There are identified differences between human resource management and strategic human resources management that need to be understood by an auditor (Teo 1997). Strategic human resources management evidences the integration of human resource management with other management activities of the organization and with the strategic planning and organizational objectives as a whole. It should be possible, when operating under a strategic human resource management framework, to identify and examine the critical human resource issues that will determine the success of the organization. An auditor who considers the stated human resources management objectives but not the fitness of those objectives to achieving the organization?s objectives might miss the opportunity to further enhance organizational performance. Some of the suggested areas for audit consideration include: the linkages between human resource management and strategic management processes, the role of human resource practitioners, the business knowledge and technical expertise of human resource practitioners, the level of fit (Internal, external, vertical and horizontal) with strategic management processes and the managerial style toward employee representatives (Teo 1997). Financial audits A (financial) audit can be described as an official examination and verification of accounts and records, especially of financial accounts (Delbridge 1982, p.79). It involves an examination of the auditee?s accounting records by an independent certified public accountant to formulate an audit opinion (Siegel & Shim 2000). The auditor must follow auditing standards and generally accepted auditing procedures, with a sample of source documents examined to substantiate the legitimacy of transactions.
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The traditional financial audit of payroll, covering (for example) segregation of duties, reconciliation of payments, verification of staff and their entitlements, leave liabilities and leave transactions is well known to human resource management practitioners. A human resource management audit does not displace the traditional financial audit since the scope, stakeholders, target report audience and audit personnel may not be the same. The accounting audit of elements of human resource management remains an essential part of an organization?s audit program. There are national standards covering financial auditing and there have been calls for the development of further accounting standards in relation to human resource management areas (Appelbaum & Hood 1993) but these areas are outside the scope of this study.
Compliance audits In the Australian context compliance reviews are covered by the Australian standard known as Compliance Programs (AS 3806-2006). The objective of the standard is to provide principles and guidance for organizations that are designing, developing, implementing, maintaining or improving a compliance program. Compliance in this context covers legal requirements, industry and organizational standards and codes, the principles of good governance, codes of conduct and accepted community and ethical standards. The emphasis is on establishing a compliance program which includes twelve nominated compliance principles covering the commitment to compliance, the implementation of the program, monitoring and measurement and continual improvement. Effective controls are needed to ensure compliance obligations are met and that critical points of risk of compliance failure are addressed. A compliance audit can assess the effectiveness of controls by critiquing management systems and procedures (Clardy 2004). A self review of compliance is not a compliance audit but it can provide the basis for validation by a competent, independent auditor in a testing program that meets the generally accepted practice standards for auditing.
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Operational audits: A working definition of operational auditing is provided in the training manual issued by the Institute of Internal Auditing as: „the application of good business practices, logical audit techniques, a management perspective and common sense to the evaluation of business issues?. (IIA 2006, p. 2-3) This definition is broad but in practice there are boundaries to the types of activity usually undertaken in operational auditing. The general types of operational audits are said to be a risk-based approach, a value for money approach and a value cost (or business process improvement) approach (IIA 2006b). These three types can be used separately or in combination with each other in the context of the function being audited. This type of audit has one key differentiating factor – it can be future orientated. Operational auditing begins with the auditor looking at a business from the manager?s point of view, and their underlying mission, vision and objectives for the organization. It is therefore necessary for management to have clearly described their: vision, mission, goals, and expected performance standards in order to provide a clear purpose and standards against which management activity can be examined by the auditor. This does not always occur in practice.
Value cost or business improvement process audits: The value cost or business improvement approach uses a variety of tools to recommend process improvement through internal audit consulting activity (IIA 2006b). This approach uses process flowcharts and analytical tools to map business processes in order to demonstrate process ownership and accountability, to demonstrate the actual process and sub-processes, to identify control points and measures and to aid process improvement. This activity can be especially useful when the time taken and costs are identified in process steps since it then allows for the improvements in processes resulting from the examination to be quantified
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RESEARCH METHODOLOGY:
Research is essentially an investigation, a record and analysis of evidence for the purpose of gaining knowledge.
Research design: A research design is simply the frame work and plan for a study that is used in guide for collecting and analyzing the data. It is blue print that is completing the study. Research design can be thought of as a structure of research, it is the glue that holds all the elements in a research project together.
Data Collection: The task of data collection begins after research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz. primary and secondary data. Primary data- primary data is he data which is collected for the first time Secondary data –secondary data is a data which have already collected by someone else.
Sources of data: There are two types of data, 1. Primary sources of data
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2. Secondary sources of data
1. Primary data sources : In primary data collection, we collect the data by ourselves using the method that is interviews and questionnaires. The key point here is that the data we collect is unique to us and our research. Primary data is a data which is collected by the researcher directly from his own observation and experiences. For example if the researcher conducts a survey for the collected data , than it is known as primary data Primary data are those data which is collected for the first time, taking a sample, representing a population.
There are many methods of collecting primary data and the main methods includes; 1. Questionnaires 2. Interviews 3. Observation 4. Schedules 5. Survey
Questionnaires: A questionnaire is a series of questions asked to individuals to obtain statistically useful information about a given topic. Questionnaires are a valuable method of collecting a wide range of information from large number of individuals, often referred to as respondents. Adequate questionnaire construction is critical to the success of a survey. Inappropriate questions, incorrect ordering of
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questions, incorrect scaling, or bad questionnaire format can make the survey valueless, as it may not accurately reflect the views and opinions of the participants. A useful method for checking a questionnaire and making sure it inaccurately capturing the intended information is to pretest among a smaller subset of target respondents.
Closed-Ended Questions
In this project closed-ended questions are used. A closed-ended question is a form of question which can normally be answered using simple "yes" or "no", a specific simple piece of information, or a selection from multiple choices. Closedended questions limit respondents' answers to the survey. The participants are allowed to choose from a pre-existing set of dichotomous answers, such yes/no, true/false, or multiple choice with an option for "other" to be filled in, or ranking scale response options. The most common of the ranking scale questions is called the Likert scale question. This kind of question asks the respondents to look at a statement and then "rank" this statement according to the degree to which they agree ("I strongly agree, I somewhat agree, I have no opinion, I somewhat disagree, I strongly disagree").There are 5 basic types of closed-ended questions: Multiple-choice; Categorical; Liker-scale; Numerical; and Ordinal. Closed-ended questions provide primarily quantitative data, and are frequently used in confirmatory research Multiple Choices Use a multiple-choice question when you want your respondents to choose the best possible answer among all options presented. Categorical Use a categorical question when the possible answers are categories, and the respondent must belong to one category Liker-Scale Use a Liker-scale question when you are trying to determine respondents? attitudes or feelings about something.Likerts scale has 5 points.1 being not very important, 5 being extremely important. Ordinal Sometimes you may want your respondents to rank order their responses. A ranking indicates the importance assigned by a participant to an attitudinal object.
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Numerical When the answer must be a number, ask a numerical question.
2. Secondary data sources:
Secondary sources of information may be divided into two categories. Internal sources: Data that originate within the firm for which the research is being conducted are internal data.
External sources:
Which are generally published and are available in different forms and from different sources? The main sources of external secondary data are, Libraries: Researcher first attends libraries to find out relevant data pertaining to research. Management institutes, research institutes, banks, insurance companies, public utility companies and manufacturing units have maintained adequate libraries. Literature: A great amount of secondary data is available from literature, particularly literature on marketing subjects. Consultations of this literature may provide proper guidance pertaining to publication, which can be used from time to time. Government departments: Different government departments have different data, which are not available in libraries. But these are very useful for understanding various aspects of the economy. The researchers can utilize them for the purposes of their researchers. Commercial data: There are several institutions and companies, which purchase and sell marketing information and data. Some of the companies are solely engaged in marketing research. They collect information and data directly from field surveys. Some such companies collect and process the secondary data and supply them to their subscribers.
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The Audit report identified and prioritized recommendations in six key areas:
1. General HR Structure 2. Policies and Procedures. 3. Employee life cycle (Attraction, Recruitment, Hiring, Orientation, Termination) 4. Performance evaluation and Training. 5. Compensation and Benefits Administration. 6. Employee communication The HR Audit was delivered to the company?s management team as a detailed report and then presented to the executives in a summary format. It included a number of recommendations to improve their ability to attract and retain talent. Human Resource Audits or used to evaluate HR policies and practices. An audit can help to evaluate the effectiveness of programs and services. The delivery of these programs and services by HR and opportunities to enhance, change or remove programs and processes. An Audit is used to determine what processes are strong, what processes will need attention. An HR Audit is used to identify problems and find solutions in an attempt to address problems before they become unmanageable. It is an opportunity to assess what an organization is doing right, as well as how things might be done differently, more efficiently or with reduced costs. It can be used to create a plan for development of an HR department?s functions
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HUMAN RESOURCE AUDIT ENTAILS:
1. Legal compliance.
There are litanies of local, state and federal regulations governing how a company operates. These laws vary by the number of employees a company has from 1 to 1,000or more. To maintain legal compliance and avoid penalties, companies need to be aware of what the regulations are and how they impact the organization. Strategic HR inc. can assist with your Legal Compliance by: Conducting a human resources audit to determine compliance and areas for improvement Conducting investigations for potential harassment situations Developing or updating policies to ensure compliance with legislation
2. Compensation/Salary Administration
Total compensation includes not only direct pay but also indirect compensation including insurance and retirement benefits and time off programs. The Texas Legislature sets eligibility requirements for these benefits and programs, based on the definition of regular employee. Regular employee is one who is listed in the position identification database for 50 percent or more time for at least four and one-half months, excluding students employed in positions that require student status as a condition for employment. Specific eligibility requirements for various programs appear in the appropriate policies and regulations. Each CEO shall establish and communicate salary administration rules, procedures and pay plans for all categories of positions, except Board-appointed positions, existing in his/her component. These rules and pay plans should address internal equity, objective and fair treatment, competitiveness with the appropriate external
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markets, and compliance with appropriate federal and state laws. Pay plans must interface with the Budget/Payroll/Personnel (B/P/P) system design.
3. Employment/Recruiting
Employee recruitment forms a major part of an organization's overall resourcing strategies, which identify and secure people needed for the organization to survive and succeed in the short to medium-term. Recruitment activities need to be responsive to the ever-increasingly competitive market to secure suitably qualified and capable recruits at all levels. To be effective these initiatives need to include how and when to source the best recruits internally or externally. Common to the success of either are; well-defined organizational structures with sound job design, robust task and person specification and versatile selection processes, reward, employment relations and human resource policies, underpinned by a commitment for strong employer branding and employee engagement and on boarding strategies. Internal recruitment can provide the most cost-effective source for recruits if the potential of the existing pool of employees has been enhanced through training, development and other performance-enhancing activities such as performance appraisal succession planning and development centers to review performance and assess employee development needs and promotional potential. Increasingly, securing the best quality candidates for almost all organizations relies, at least occasionally if not substantially, on external recruitment methods. Rapidly changing business models demand skill and experience that cannot be sourced or rapidly enough developed from the existing employee base. It would be unusual for an organization to undertake all aspects of the recruitment process without support from third-party dedicated recruitment firms. This may involve a range of support services, such as; provision of CVs or resumes, identifying recruitment media, advertisement design and media placement for job vacancies, candidate response handling, short listing, conducting aptitude testing, preliminary interviews or reference and qualification verification. Typically, small organizations may not have in-house resources or, in common with larger organizations, may not possess the particular skill-set required to undertake a specific recruitment assignment. Where requirements arise, these are referred on an ad hoc basis to government job centers or commercially run employment agencies. Except in sectors where high-volume recruitment is the norm, an organization faced with sudden, unexpected requirements for an
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unusually large number of new recruits often delegate the task to a specialist external recruiter. Sourcing executive-level and senior management as well as the acquisition of scarce or „high-potential? recruits has been a long-established market serviced by a wide range of „search and selection? or „headhunting? consultancies, which typically form long-standing relationships with their client organizations. Finally, certain organizations with sophisticated HR practices have identified there is a strategic advantage in outsourcing complete responsibility for all workforce procurement to one or more third-party recruitment agencies or consultancies. In the most sophisticated of these arrangements the external recruitment services provider may not only physically locate, or „embed?, their resourcing team(s) in the client organization's offices, but work in tandem with the senior human resource management team in developing the longer-term HR resourcing strategy and plan.
4. Orientation:
New employee orientation effectively integrates the new employee into your organization and assists with retention, motivation, job satisfaction, and quickly enabling each individual to become contributing members of the work team. Two questions need to be answered in regards to the orientation of a new employee: 1. Who will orientate the new employee? 2. What should be covered during orientation? One person should be in charge of handling orientation. Generally, this will be the owner/operator; however, on large farm operations, another employee may specifically be responsible for orientating all new employees. Having just one individual in charge of orientation ensures a consistent message to new employees. The orientation of a new employee can involve several people even though one person has overall responsibility. Information covered will change from farm to farm, but a basic core of material should be discussed with the new employee, including such specific characteristics of the farms layout of operation, other employees, history, mission, goals, and role of the employee.
This kind of information provides the "big picture" of the farm to the employee. Personnel policies including probationary period, disciplinary actions,
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work schedule, safety rules, and use of equipment also need to be covered. New employees are always interested in their benefits. Items such as pay, pay day, vacation, sick leave, and other benefits should be covered. Discuss specific responsibilities the new employee will be assigned, how the job relates to other work on the farm, and safety rules. Finally, be sure to introduce the new employee to the farm management team, including family members and other employees. It is helpful to develop an employee handbook so policies and benefits can be accessible and clear to both employer and employee. Answer all of the immediate questions that the new employee might have. It is important to develop open, two-way lines of communication between the employer and employee right from the beginning. Consider the time spent for orientation as an investment for both you and the employee. Clear, well-defined expectations will pay dividends and reduce possible misunderstandings between employer and employee. By orientating the new employee properly, a smooth transition can be made to the next step--training. Orientation can make the difference in your employee feeling part of you "team" or not. Proven benefits of an effective orientation are: ? Better understanding of job functions ? Higher level of motivation ? Improved learning curve ? Improved employee retention rate Ultimately improved productivity for the organization Human Resource Management Services conducts an employee orientation session for new state employees at the beginning of every month. Following are some of the topic son which new employees are briefed: ? Health Plan ? Retirement Benefits ? Life Insurance Options ? Flex Comp Plan
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? Employee Assistance Program ? Sexual Harassment ? Americans with Disabilities Act ? Holidays ? Annual, Sick, Family Medical, and Funeral Leave ? Personnel Records ? Drug-Free Workplace ? Conflict of Interest ? Alternative Dispute Resolution
The appointing authority or supervisor has responsibility to orient the new employee on: ? Job duties, responsibilities, and expectations or goals ? Probationary period ? Hours of work and FLSA status ? Agency and/or work unit policies ? Employee Assistance Program ? Safety issues ? Agency mission and organization
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It is the responsibility of the agency payroll clerk or human resource officer to cover the following topics: ? Payroll information and completion of forms ? Insurance, retirement, and flex comp benefits and completion of forms ? Other benefits such as leave, holidays, etc .
The wealth of information to be learned in a new environment can be overwhelming for a new employee. The purpose of the orientation program is to provide the employee with the information to make those first days of new employment easier. The following guidelines will help make the orientation for a new employee successful: ? Focus on the job and those aspects that are most important, such as the dayto-day events that an employee needs to know to get up to speed and be a part of the team. Don?t explain everything about the agency on the first day. Those types of things can be learned over time. ? Pull together a set of orientation materials including work unit and/or agency organizational charts, an employee handbook, job description, information on benefits etc. ? The supervisor should follow up with the employee on a regular basis to monitor how the employee is doing and the effectiveness of the orientation.
5. Terminations:
Termination of employment is the end of an employee's duration with an employer. Depending on the case, the decision may be made by the employee, the employer, or mutually agreed upon by both. Employees leave your organization for good reasons and bad reasons. On the positive side, they find new opportunities, go back to school, retire or land their dream job. Less positively, they are fired for poor performance or poor attendance or experience a layoff because of a business
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downturn. In each instance, youneed an employment termination checklist to help the employee exit process go smoothly. Here?s a sample employment termination checklist. There are two types of terminations inhuman resource management.
Voluntary termination Voluntary Termination is a decision made by the employee to leave the job. Such decision is commonly known as "resignation," "quitting," "leaving," or" giving
Notice."Some common reasons for voluntary termination include: ? Personal dissatisfaction with job, employer, hours, or working conditions, or in more severe cases, burnout. ? Factors in employee's personal life not related to the job that makes holding or performing the job impossible or more difficult. These may include family obligations, education, health, or moving to a new location. ? Hire at a new job. Reasons for wanting a different job may be better working conditions, better hours, a shorter distance to work, better pay, graduation, career progression or preparation for entry into a new career, or a career change ? Feared or anticipated involuntary termination. The employee may wish to take matters into his/her own hands in order to leave more honorably. This is also known as mutual consent in some parts. ? Retirement. This may be as a result of the employee's age (which may vary, depending on job type and benefits available following retirement) or else an injury, disability, or other medical condition forcing early retirement. Depending on the employee's reason, comfort with the employer, and dedication to the job, voluntary termination may be sudden and abrupt without warning to the employer, or with a certain amount of notice given. Generally, employers prefer that a departing employee provide at least some notice to the employer, often at least two weeks, this often called a two-week notice. Those in
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compliance with this requirement are more likely to be rehired by the same employer in the future, to receive their full benefits from the employer, and to get a better reference for future employers.
Involuntary termination Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being "fired" and "laid off." To be fired, as opposed to being laid off, is generally thought of to be the employee?s fault, and therefore is considered in most cases to be dishonorable and a signoff failure. Often, it may hinder the new job-seekers chances of finding new employment, particularly if he/she has been fired from earlier jobs. Job-seekers sometimes do not mention jobs which they were fired from on their résumés; accordingly, unexplained gaps in employment and refusal to contact previous employers are often regarded as red flags.
Dismissal Dismissal is the employer's choice to let the employee leave, generally for a reason which is the fault of the employee. The most common colloquial term for dismissal in America is being fired whereas in Britain the term 'getting the sack' is used.
Layoff:
A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). A layoff is usually not strictly related to personal performance, but instead due to economic cycles or the company?s need to restructure itself, the firm itself is going out of business, or due to a change in the function of the employer (for example, a certain type of product or service is no longer offered by the company, and therefore jobs related to that product or service arena longer needed). One type of layoff is the aggressive layoff. In such a situation, the employee is laid off for a just cause, but not replaced as the job is eliminated. In a postmodern risk economy, such as that of the United States, a large proportion of workers may be laid off at some time in their life, and often for reasons unrelated to performance or ethics. However, employment termination can also result from a probation period, in which both the employee and the employer reach an agreement that the employer is allowed to lay off the employee if the probation period is not satisfied.
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Often, layoffs occur as a result of "downsizing", "reduction in force" or "redundancy”. These are not technically classified as firings; laid-off employees jobs are terminated and not re-filled, because either the company wishes to reduce its size or operations, or otherwise lacks the economic stability to retain the position. In some cases, a laid-off employee may be offered a re-hire by his/her respective company, though by this times/he may have found a new job. Some companies resort to attrition (voluntary redundancy in British English) as a means to reduce their workforce. Under such a plan, no employees are forced to leave their jobs. However, those who do depart voluntarily are not replaced. Additionally, employees are given the option to resign in exchange for a fixed amount of money, frequently a few years of their salary. Such plans have been carried out by the United States Federal Government under President Bill Clinton during the 1990s and by the Ford Motor Company in 2005. However layoff may be specifically addressed and defined differently in the articles of a contract in the case of union work.
Termination by mutual agreement
Some terminations occur as a result of mutual agreement between the employer and employee. When this happens, it is sometimes debatable if the termination was truly mutual. In many of these cases, it was originally the employer's wish for the employee to depart, but the employer offered the mutual termination agreement in order to soften the firing (as in a forced Resignation). But there are also times when a termination date is agreed upon before the employment starts (as in an employment contract). Some types of termination by mutual agreement include: ? The end of an employment contract for a specified period of time (such as an internship) ? Mandatory retirement. Some occupations, such as commercial airline pilots, face mandatory retirement at a certain age. ? Forced resignation
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6. Training and Development:
Training and Development is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format.
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVELOPMENT
Traditional Approach – Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth. Organizations used to believe more in executive pinching. But now the scenario seems to be changing. The modern Approach of training and development is that Indian Organizations have
TRAINING AND DEVELOPMENT OBJECTIVES
The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. ? Individual Objectives – Help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. ? Organizational Objectives – Assist the organization with its primary objective by bringing individual effectiveness. ? Functional Objectives – Maintain the department?s contribution at a level suitable to the organization?s needs. ? Societal Objectives
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– Ensure that an organization is ethically and socially responsible to the needs and challenges of the society.
7. Employee Relations
Welcome to the Employee Relations division of the Office of Human Resources Management. The company is committed to promoting a productive and positive work environment for all of its employees. In support of this, the office of Employee Relations offers a variety of services. ? Consulting with individuals and departments to foster positive and productive work environments ? Providing coaching and training regarding the company?s performance management system. ? Advising and training departments on corrective actions and administering the company?s progressive disciplinary process. ? Advising individuals and departments on matters and policies related to employee relations and employee rights. ? Supporting the campus community through administrative processes including disputes, grievances, charges, and appeals related to various employee relations issues. ? Investigating and resolving complaints and charges of discrimination, sexual harassment, retaliation or other work related complaints. ? Providing conflict resolution options including: facilitation, mediation and training.
If you need to discuss a matter with Employee Relations staff, confidentiality will be maintained to the extent possible. Some issues may require further investigation or consultation with other campus departments. In such cases, information wills only be shared with other individuals on a need-to-know basis.
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The Employee Relations Discipline concerns the relationship of employees with the organization and with each other. It includes the processes of developing, implementing, administering and analyzing the employer-employee relationship; performing ongoing evaluation of it; managing employee performance; ensuring that relations with employees comply with applicable federal, state and local laws and regulations; and resolving workplace disputes. It also includes matters that focus on HR careers, communications, legal and regulatory issues, technology, metrics and outsourcing in the employee relations field, as well as effective employee relations practices and global employee relations issues. It does not include matters involving union organizing, union elections, collective bargaining and ongoing union-management relations, which are encompassed in the Labor Relations Discipline.
8. Communications
If the company is involved in employee communication then they already know that one of the most important aspects of employee communication today is measurement. But so much of that measurement is focused on whether employee?s access the tools organizations use to communicate with them. The company knows that the questions such as do they read the newsletter, do they access the corporate blog, and do they find the information sessions interesting. None of these questions prove that the employee communication tools measure engagement which is what every CEO wants to know. There is one key reason that the companies are measuring the acceptance of communication tools, not measuring employee communication strategy. So here's what the companies do. ? Every organization conducts market research surveys. These surveys typically measure customer satisfaction levels across services and products provided by your organization. Sometimes they even ask questions about competitor products and services. Organizations then take that information and work towards improving the rating they received by introducing improvements to services, products and information. ? Typically the result demonstrates disparity between what customers think and what employees think customers think. Once you have the difference measured between perception and reality then you have the opportunity to
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commence dialogue about with your employees about what customers really think. Most importantly it allows you to design employee communication strategies specifically to target that business issue. So now you have a business and know the key messages for your employee communication strategy. ? One year on when the customer survey is conducted, you ask the same questions and again do the same with the staff survey. What you seek to find is that the measure of the perception staff have of what customers think and what customers actually think have moved closer together and towards the organizations desired outcome. This becomes your business measure of whether you have engaged employees. ? This information is important because your ultimate aim in employee communication has to be to create the "Aha Moment". The Aha Moment is based on information that challenges the employee's belief about an aspect of the business. The information that suddenly helps employees say, "Now it makes sense", "Now I understand", "Now I can do something about it". It is only once you see this gap close between what customers actually think about an issue and what employees think the customer thinks that you have a measure that demonstrates your employee communication engagement strategy has been successful. If the gap still exists then the design of your employee communication strategy is flawed in some way. Finally, it is important that we measure employee communication tools such as readership of our staff magazine, access of our intranet and other tools. However the only way to impact perceptions of the value that the employee communication function contributes to an organization is to measure engagement strategies against business outcomes.
This approach to measurement is low cost. The investment in the human resources staff survey and the marketing departments' customer research is already locked in. You are simply adding 10 questions to the end of the human resources survey based on the marketing questions. The engagement strategies are generally low cost because they involve people, not tools. By this I mean that employees are involved in doing something differently to bring about change in an organization. The staff newsletter another information tools already exist; all you do is tailor the articles to reflect the main focus of your employee engagement strategy. This low
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cost yet highly effective approach will ensure that you can measure your employee communication strategies against business outcomes.
9. Files/Record maintenance technology
The university uses and maintaining a records management system that is secure from unauthorized access, damage and misuse. The system captures and supports records that are accurate, authentic, accessible, useable, retained, and regular operation and is managed in compliance with all requirements arising from current business processes, the regulatory environment and community expectations. The record management system: ? Routinely captures all records within the scope of the business activities of Griffith University: ? Organizes the records in a way to reflect the business processes of the record?s creator ? Protects the records from unauthorized alteration or disposition ? Routinely functions as the primary source of information about actions that are documented in the records: and ? Provides ready access to all relevant records and related metadata.
Control measures, such as access monitoring, user verification authorized destruction and security are implemented to prevent unauthorized access, destruction alteration or removal of records. 10. Policies and procedures (including employee hand book) Policies, handbooks and procedures provide guidance for fair and consistent staff treatment. They are most useful when applied as guidelines rather than as rules and laws. Straight-forward, clear and concise HR policies and job descriptions are important for a number of reasons. Failing to implement policies and job descriptions leaves your company open to legal challenges, grievances and
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lawsuits, especially if you inconsistently apply your human resources policies and your pay structure/system.
Grievances and lawsuits lead to: ? Increased costs that affect your profits ? Increased turnover ? Negative morale
Your company will avoid these problems if you implement hr policies, procedures and job descriptions and you can easily do this if you download our sample job descriptions and hr policies. Your company needs human resources policies and procedures and current job descriptions so that your staffs are treated equally across a variety of employment issues. In addition, human resource polices help if legal situations arise. Our products and services are ideally suited for: ? Small Business Owners ? Managers ? HR Professionals ? HR Consultants ? Lawyer?s
Small businesses often scramble for resources when compiling staffing information, contracts, developing HR policies and procedures and writing job descriptions. In addition, many large companies have dated policies, procedures and job descriptions that no longer reflect the reality of today's business world.
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Companies looking for fresh ideas and a fresh start to can find what they are looking for with our sample hr policies and sample job descriptions.
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