HR CHALLENGES IN THE INDIAN SOFTWARE INDUSTRY

Software is a wealth and job creating industry, which has in just a few years, grown to US $ 1trillion, employing millions of professionals worldwide. The Indian software industry has burgeoned, showing a nearly 50% compounded annual growth rate over the recent years. Being acknowledge-based industry, a high intellectual capital lends competitive advantage to a firm. Intellectual capital comprises human capital and intellectual assets the latter being any created bit of knowledge or expertise. With a global explosion in market-opportunities in the IT sector, the shortage of manpower both in numbers and skills is a prime challenge for HR professionals. The related issues are varied indeed: recruitment of world-class workforce and their retention, compensation and career planning, technological obsolescence and employee turnover. This article presents some of the findings of our recent research on the HR challenges posed by the IT sector. Workforce Retention and Motivation: Retention and motivation of personnel are major HR concerns today. People a Gartner group company specializing in management of human capital in IT organizations have observed that the average tenure for an IT professional is less than three years. Further, the use of new technologies, the support of learning and training, and a challenging environment ranked higher than competitive pay structures as effective retention practices. Our own recent survey of 1028software professionals from 14 Indian software companies, showed that while the professional gave importance to personal and cultural job-fit, HR managers believed that the key to retention was salary and career satisfaction. Money was a prime motivator for 'starters', but for those into their third or fourth jobs, their value-addition to the organization was more important. Monetarily, offering 'the best salaries in industry' is the minimum every company is doing, apart from performance-based bonuses, long-service awards, and stock options. Many organizations frequently conduct employee satisfaction and organization climate surveys, and are setting up Manpower Allocation Cells (MAC) to assign 'the right project to the right person'. In fact, some are even helping employees with their personal and domestic responsibilities to satisfy &motivate their workforce! Attracting the Best Talent: In a tight job market, many organizations often experience precipitous and simultaneous demands for the same kinds of professionals. In their quest for manpower, they are cajoling talent around the world. In such a seller's market, software companies are striving to understand which organizational, job, and reward factors contribute to

attracting the best talent one having the right blend of technical and person-bound skills. This would mean a knowledge of 'the tools of the trade' combined with conceptualization and communication skills, capacity for analytical and logical thinking, leadership and team building, creativity and innovation. The Indian software industry suffers from a shortage of experienced people such as systems analysts and project managers, and attracting them is a key HR challenge. Compensation and Reward: Increasing demands of technology coupled with a short supply of professionals (with the requisite expertise) has increased the costs of delivering the technology. This makes incentive compensation a significant feature, with the result that software companies have moved from conventional pay-for-time methods to a combination of pay-forknowledge and pay-for- performance plans. With the determinants of pay being profit, performance and value-addition, emphasis is now on profit sharing (employee stock option plans) or performance-based pay, keeping in view the long-term organizational objectives rather than short-term production-based bonuses. Skills, competencies, and commitment super cede loyalty, hard work and length of service. This pressurizes HR teams to devise optimized compensation packages; although compensation is not the motivator in this industry. Being the best place to work with: As with any other professional, what really matters to software professionals is selecting 'the best place to work with' which is what every company is striving to be. The global nature of this industry and the 'project-environment' (as opposed to product environment) has added new cultural dimensions to these firms. In a value-driven culture, values are determined and shared throughout the organization. Typically, areas in which values are expressed are: performance, competence, competitiveness, innovation, teamwork, quality, customer service, and care and consideration for people. Flat structure, open and informal culture, authority based on expertise and ability rather than position, and flexi-timings are some of the norms software firms follow. are even helping employees with their personal and domestic responsibilities to satisfy &motivate their workforce! Attracting the Best Talent: In a tight job market, many organizations often experience precipitous and simultaneous demands for the same kinds of professionals. In their quest for manpower, they are cajoling talent around the world. In such a seller's market, software companies are striving to understand which organizational, job, and reward factors contribute to attracting the best talent one having the right blend of technical and person-bound skills. This would mean knowledge of 'the tools of the trade' combined with conceptualization and communication skills, capacity for analytical and logical thinking, leadership and team building, creativity and innovation. The Indian software industry suffers from a shortage of experienced people such as systems analysts and project managers, and attracting them is a key HR challenge. Compensation and Reward:

Increasing demands of technology coupled with a short supply of professionals (with the requisite expertise) has increased the costs of delivering the technology. This makes incentive compensation a significant feature, with the result that software companies have moved from conventional pay-for-time methods to a combination of pay-forknowledge and pay-for- performance plans. With the determinants of pay being profit, performance and value-addition, emphasis is now on profit sharing (employee stock option plans) or performance-based pay, keeping in view the long-term organizational objectives rather than short-term production-based bonuses. Skills, competencies, and commitment super cede loyalty, hard work and length of service. This pressurizes HR teams to devise optimized compensation packages, although compensation is not the motivator in this industry. Being the best place to work with: As with any other professional, what really matters to software professionals is selecting 'the best place to work with' which is what every company is striving to be. The global nature of this industry and the 'project-environment' (as opposed to product environment) has added new cultural dimensions to these firms. In a value-driven culture, values are determined and shared throughout the organization. Typically, areas in which values are expressed are: performance, competence, competitiveness, innovation, teamwork, quality, customer service, and care and consideration for people. Flat structure, open and informal culture, authority based on expertise and ability rather than position, and flexi-timings are some of the norms software firms follow. The idea is to make the work place a 'fun place' with the hope of increasing loyalty and commitment. Coping with the Demand-Supply Gap: Shortage of IT professionals is global in nature and not peculiar to the Indian software industry alone. W. Stiegel, founder of Software Productivity Centre Inc. (1999) has projected the shortage of software professionals to be one million by 2006. In fact, a survey reports that 75 per cent of US companies planned tore engineer their applications using newer technologies, but found that 72 per cent of their existing staff lacked the skills needed in these technologies, and14 per cent were not even retrainable. For India, it is predicted that in the year 2004 itself, the IT sector will need 1, 95,000 professionals. This trend will continue, and in the year 2010almost 3, 70,000 IT professionals will be required (Strategic Review Reports, NASSCOM 1996-2001). Consequently, recruitment managers are exploring new sources of IT manpower from on-IT professional sectors, as well fresh, trainable science graduates. Integrating HR strategy with Business Strategy:

The strategic HR role focuses on aligning HR practices with business strategy. The HR professional is expected to be a strategic partner contributing to the success of business plans, which to a great extent depend on HR policies pertaining to recruitment, retention, motivation, and reward. The other major areas of concern for HR personnel in this context are, management of change, matching resources to future business requirements, organizational effectiveness, and employee development. Encouraging Quality and Customer focus: Todays corporate culture needs to actively support quality and customer orientation. With globalization and rapid technological change, quality is of utmost importance for the Indian companies, which earn most of their revenues through exports. Hence, the HR professional as a strategic partner needs to encourage a culture of superior quality to ensure customer satisfaction the only real measure of quality of a product or service. To be competitive today, an organization needs to be customer responsive. Responsiveness includes innovation, quick decision-making, leading an industry in price or value, and effectively linking with suppliers and vendors to build a value chain for customers. Employee attitudes correlate highly with customer attitude. The shift to a customer focus redirects attention from the firm to the value chain in which it is embedded. HR practices within a firm should consequently be extended to suppliers and customers outside the firm.

Up-gradation of Skills through Re-Training: Rapid and unpredictable technological changes and the increased emphasis on quality of services are compelling software businesses to recruit adaptable and competent employees. Software professionals themselves expect their employers provide them with all the training they may need in order to perform not only in their current projects, but also in related ones that they may subsequently hold within the organization. As observed by Watts Humphrey, Fellow of the Carnegie Mellon University, as software professionals gain competence; they do not necessarily gain motivation. This is because a creative engineer or scientist who has learned how to accomplish something has little interest in doing it again. Once they have satisfied their curiosity, they may abruptly lose interest and seek an immediate change". And when the rate of technological change is high may be higher than the time required acquiring competence in one area professionals could undergo psychological turbulence owing to the need to work in a new technology throughout their career. They want to gain new knowledge, which will be utilized by their organization. On the basis of the new learning

they want to work in higher segments of software value chain. Therefore, constant upgradation of employee skills poses yet another challenge for HR personnel. Conclusion: With the advent of a work situation where more and more companies have to concede that their valued employees are leaving them, a new concept of career and human resource management is bound to emerge. The focus of this new paradigm should not only be to attract, motivate and retain key 'knowledge workers', but also on how to reinvent careers when the loyalty of the employees is to their 'brain ware' rather than to the organization. With lifetime employment in one company not on the agenda of most employees, jobs will become short term. Today's high-tech employees desire a continuous up-gradation of skills, and want work to be exciting and entertaining a trend that requires designing work systems that fulfill such expectations. As employees gain greater expertise and control over their careers, they would reinvest their gain back into their work. HR practitioners must also play a proactive role in software industry. As business partners, they need to be aware of business strategies, and the opportunities and threats facing the organization. As strategists, HR professionals require to achieve integration and fit to an organization's business strategy. As interventionists, they need to adopt an all-embracing approach to understanding organizational issues, and their effect on people. Finally, as innovators, they should introduce new processes and procedures, which they believe will increase organizational effectiveness.

HR FUNCTION IN RELIANCE ADA GROUP RELIANCE ADA GROUP

The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector business houses on all major financial parameters, with a market capitalization of Rs.100,000 crore (US$ 22billion), net assets in excess of Rs.31,500 crore (US$ 7 billion), and net worth to the tune of Rs.27,500 crore (US$ 6 billion).Across different companies, the group has a customer base of over 50million, the largest in India, and a shareholder base of over 8 million, among the largest in the world.Through its products and services, the Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 4,500 towns and 300,000 villages in India, and 5 continents across the world. The interests of the Group range from communications (Reliance Communications) and financial services (Reliance Capital Ltd), to generation, transmission and distribution of power (Reliance Energy), infrastructure and entertainment.

COMPANIES OF ADA GROUP

RELIANCE CAPITAL RELIANCE COMMUNICATIONS LIMITED RELIANCE ENERGY LIMITED RELIANCE HEALTH RELIANCE MEDIA & ENTERTAINMENT

Products And Activities

The products of RHRS include providing complete HR solutions to the following Reliance Groups: Reliance Communication: Broad Band Corporate Wireless Group Direct Sales Team (Handsets, prepaid and postpaid) Direct to Home (DTH) WI Max Reliance Global (For ISD Calls)

Reliance Capital Services Pvt. Ltd.:

RCF Reliance Consumer Finance RLI Reliance Life Insurance RGI Reliance General Insurance

R .Money Reliance Money RMF Reliance Mutual Fund Reliance Web world Customer Care

RELIANCE ADA GROUP STRUCTURE

HUMAN RESOURCE MANAGEMENT

For any business to run one needs four Ms namely Man, Money, Machine and Material. Managing other three resources other than men, are easy to handle. Men are very difficult to handle because no two human beings are similar in all way. Human beings can think, feel and give response. Handling humans is more important for any business because human being have crucial potential that may be very profitable for the business. And these potential can be developed to an unlimited extent if they are provided with proper environment. So the function of managing men is as important as finance or marketing function in any business. HRM refers to practices and policies framed for the management of human resources in an organization, including Recruiting, screening, rewarding and appraising.Human resources have at least two meanings depending on context..The original usage derives from political economy and economics, where it was traditionally called labor, one of three factors of production. The more common usage within corporations and businesses refers to the individuals within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and other personnel issues. This article addresses both definitions. The objective of Human Resources is to maximize the return on investment from the organization's human capital.

THE SCOPE OF HRM is indeed very vast. All major activities in the working life of a
worker-from the time of his or her entry into the organization until he or she leavescome under the purview of HRM. Specifically, the activities include are HR Planning Job analysis and design Recruitment and selection Orientation and placement Training and development Performance Appraisal and Job evaluation Employee and executive remuneration Employee Motivation Employee Welfare

It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner."Human resource management aims to improve the productive contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives.

HR STRUCTURE

Figure 1

CORPORATE HR: Activities taken up by Corporate HR are Policy making Implementing suggestions - HEWITT CONSULTANT Strategic planning ENTITY HR: Activities taken up by Entity HR are Execution of policies and practices Targets for recruitment of Circle HR CIRCLE HR: Activities taken up by Circle HR are Recruitment Appointment Training Payroll Employees issues Exit full & final

HR FUNCTIONS

TALENT ACQUASITIO Sourcing activity TALENT DEVELOPMENT Performance management system Training Carrier planning Suggestion planning

TALENT MANAGEMENT Operation HR

RECRUITMENT PROCESS
STEP 1: MANPOWER PLANNING AOP (Annual Operating Plan), this process is taken up every year. It is taken up at Personal Level and Entity Level. Several points like Revenue generation, Acquisition number, etc. STEP 2: SOURCING ACTIVITY There are three types of sourcing done at Reliance. After the resumes of candidates are chosen then the same is sent to the department head where the vacancy arises. The departmenthead will then shortlist the same and they ask the HRdepartment to fix an interview with the selected candidates. There are two type of interview which is taken up at Reliance, firstly the Functional interview and then the Functional Head and HR Head takes the interview. INTERNAL SORCING Employee Reference Re-employment of former employee EXTERNAL SOUCING Placement Consultant Ruchika, the Age, the Avenue.

Job Portals - Monster, NAUKRI. Campus Recruitment

STEP 3: APPROVAL. The HR executives will negotiate the CTC with the candidate. The approval is sent to the CRC (Corporate Recruitment Cell Then after it is sent to ECRC Then the same is sent to CRL The same is then sent to Management for SAP Applicant Code The applicant code is given to HR CIRCLE OFFER is made to the candidate, which leads to the Joining Procedure

AVERAGE TIME PERIOD: The process of recruitment takes about 10 15 days

ELIGIILITY CRITERIA: Education Qualification MBA with any specialization Not frequent job changes Tenure of last job should at least be 1.5 2 yrs

OTHER REQUIREMENTS: Reference check is usually done for High level job The recruitment may differ with the current position of the business

INTERNAL SOURCING
In the event of an open position in Reliance Communication, suitable candidates are first searched internally within the organization. This is based upon in-house talent which could be redeployed. Advertisement for internal vacant position is done by following two ways. Through sending mail to all Reliance Infocomm employees across all locations including DAKC (Dhirubhai Ambani Knowledge City) Through DAKC Circular Employees of Reliance Communication who have completed more than 12 months of continuous service only those employees can apply for position placed on Intranet. Internal candidates are considered in accordance with their abilitiesand potential. The process is coordinated by CRC (CentralRecruitment Cell) at Corporate Office.

EMPLOYEE REFERENCE In Reliance Communication, Employees can refer a candidate with whom he/ she have worked in his/ her previous employment. Employees can check available vacancies on Intranet and can submit the resumes of prospective candidates who fit the Job profile.

RE-EMPLOYMENT OF FORMER EMPLOYEE Re Hiring of an employee done in Reliance Communication with a view to take trained manpower back in the company Re Hiring is done as per the policy issued by Central Recruitment Cell at Corporate Office

EXTERNAL SOURCING
PLACEMENT CONSULTANCY: The placement agencies call for resumes of prospective candidates, which act as a good source of recruitment for the companies. Consultants interview candidates and shortlist those according to the criteria laid down by the companies. Thishelps the employer to interview a limited number of potentialcandidates, the minimizing the time taken in receiving and sorting applications, etc Reliance Communication chooses Consultants having national presence.This sourcing option is only considered by the company when there is scarcity for candidates with requisite experience and skill JOB PORTAL: The spread of Internet has enabled employers to search for candidates globally and has made recruitment easier. If vacancy arises, Reliance Communication browses the profile of candidatesfrom the Job portal like naukri.com, monsterindia.com and then candidates are accessed through e-mail or telephone. CAMPUS RECRUITMENT: Reliance Communication goes for Campus recruitment every year for technical department. For management level recruitment, it goes for campus recruitment as per requirement. For filling up position for MT (Management Trainee), followingprocedure is followed by Reliance Communication: HR representative of Reliance Communication gives Description about Job to all candidates Written Test i.e. (MAT) Mental Ability Test is taken for those candidates who has got aggregate 60% in all semesters.

GD (Group Discussion) is conducted for those candidates who had successfully pass MAT. At last PI (Personal Interview) is conducted for those candidates who had passed out GD and Personal Interview is taken by respective head of department and HR Head.

For filling up position for GET (Graduate Engineering Trainee), following procedure is followed by Reliance Communication: HR representative of Reliance Communication gives Description about Job to all candidates Written Test i.e. (MAT) Mental Ability Test is taken for those candidates who has got aggregate 60% in all semesters. At last PI (Personal Interview) is conducted and PersonalInterview is taken by respective head of department and HR Head. MT position includes candidates having Educational qualification in MBA and GET Position includes candidates having Educational qualification in BE (E&C, Electronics). MT is placed in either of the following departments: Prepaid Postpaid PCO Customer Care Commercial HR Web world

GET is placed in Network Department. INTERVIEW Interview is the oral assessment of the candidates for employment. This is the most essential step in the selection process. In this step the interviewer matches the information obtained about the candidatethrough various means to the job requirements and to theinformation obtained through his own observation during theinterview. Interview gives the recruiter an opportunity: To size up the candidate personally To ask questions that are not covered in tests

To make judgments on candidates enthusiasm and intelligence. To assess subjective aspects of the candidate facialexpressions, appearance, nervousness and so forth To give facts to the candidate regarding the company, the policies, programmes, etc. and promote goodwill towards the company.

MODE OF INTERVIEW PERSONAL INTERVIEW Personal Interview is a formal in-depth conversation conducted to evaluate the applicants acceptability. In a personal interview, candidates are accessed on behavioral and personality characteristics, functional and managerial competencies and other factors like education, experience etc. Based on the candidates performance in the interview, the interview panel rates the candidate and takes the selection decision. VIDEO CONFERENCE At Reliance Communication, usually face to face interviews are conducted but for those candidates who are located at other state for them video conferences inter views are conducted. The use of video conferencing can add value to the process by allowing real time, face-to-face interactions without the costs associated with physically transporting candidates to the campus. Reliance Communications uses Video conference for following reasons: Time savings Faster Decision making Cost savings in candidate travel, lodging, etc. An opportunity to meet the candidates before narrowing the list An opportunity to see and converse with candidates, evaluate their responses to questions and gauge their interest in the position.

TELEPHONIC INTERVIEW There are various reasons to take a telephonic interview. For example, in certain location Reliance Communications does not have its Web world, so in that case the interview of that candidate will be taken over telephone. Even if the interview of a candidate cannot happen through video conference because of unavailability of any Web world timings, then telephonic interview is taken.

 CAMPUS RECRUITMENT For GET, Interview is taken by respective functional head and HR head and for MT Interviews taken by 2-3 functional heads, HR head and final interview is taken by Circle CEO.

LEVELS OF DESIGNATION & EXPERIANCE

L1: VICE PRESIDENT, Sr. VICE PRESIDENT, PRESIDENT. (LEADERSHIP POSITIONS) EXPERIENCE:17 20 + years L2: DEPUTY GENERAL MANAGER, GENERALMANAGER.(MAGERIAL POSITIONS) EXPERIENCE:11 15 + years L3: ASSISTANT MANAGER, MANAGER, Sr. MANAGER.(EXECUTIVE POSITIONS) EXPERIENCE:5 11 + years L4: EXECUTIVE, Sr. EXECUTIVE.(SUPPORT POSITONS) EXPERIENCE:2 4 + years GET, MET, DET: Trainees EXPERIENCE: Fresher

REFERENCE CHECK
Once the hiring decision is taken, the candidate is contacted and informed about the decision to conduct a reference check with the referees whose names have been provided in the personal history form. Many employers request names, addresses and telephonenumbers ofreferences for the purpose of verifying information and perhapsgai ning additional background information on an applicant. References are checked for following reasons: To check whether or not the applicant was truthful about his or her employment history. To know weaknesses, strengths of the applicant.

SELECTION DECISION After obtaining information through the preceding steps, selection decision is to be made. The other stages of selection process have been used to narrow the number of candidates. The final decision is to be made from the pool of individuals who pass the tests, interviews

MEDICAL CHECK-UP All selected candidates are required to undergo a pre-employment medical check-up as a part of selection process. After the selection decision and before the job offer is made, the candidate is required to undergo a Medical check-up. A job offer is contingent upon the candidate being declared fit after the Medical test.

EMPLOYEE REMUNERATION Remuneration is the compensation receives in return for his/ her contribution to the organization.Reliance Communication follows the cost to company (CTC) structure that reflects the total cost of an employee to anorganization. It is designed to provide flexibility to an employee to structure their benefit package. PHILOSOPHY OF CTC Within the committed salary of an employee, provide maximum flexibility to an employee Cost all perquisites and benefits to an employee and make the employee appreciate the total costs incurred by the company on such benefits. Enable the company realize and recognize the hidden payroll costs incurred on such benefits

PLI (PERFORMANCE LINKED INCENTIVE) 15% on Fixed CTC would be would the base figure for PLI. Normally PLI is paid once in a year depending on his performance during the assessment period CTC SRUCTURE The CTC structure includes costing of all components of Compensation and Benefits an employee is entitled to

BASE PAY This constitutes up to 40% o the total annual compensation and it includes Basic Salary Employers contribution to the PF @ 12% of basic salary Employers contribution to the companys gratuity fund @4.81% of basic salary

BASIC SALARY Basic Pay = Base pay/pf + gratuity Base Pay = 100 Basic Pay = 100/1.1681

PROVIDENT FUND Provident fund is to provide Social Security Benefit to the employee after retirement. PF is deducted from the first day of employment. The Company deducts 12% of the employees basic salary and makes an equal contribution. The employee can take loans for specificpurposes against his/her provident fund accumulation. The employee is also covered under an Insurance Scheme, which provides for a payment of Rs. 37,000 / - in case of his /her death. GRATUITY Under the scheme Company contributes 4.81% of Basic Salary of an employee to the Gratuity Fund. Last drawn basic salary/26 days*15days*no. of completed years of service. Employees who have completed 5 years continuous service with the company are eligible to get gratuity on separation from the company. In case of death, the minimum service requirement of 5 years does not apply. For calculating Gratuity, periods of service greater than 6 months will be considered as equivalent to 1year and less than 6 months will not be counted. As per Income Tax Rules, Gratuity is not taxable up to 3, 50,000/- . Any amount paid in addition to 3, 50,000 /- will attract tax. All employees who have completed 1 year continuous service with the company are eligible to get gratuity on separation from the company.

CHOICE PAY This constitutes up to 60% o the total annual compensation and it includes Company Leased Accommodation Company Owned Accommodation Office Wear Allowance Leave Travel Allowance Company Leased Car Children Education Allowance Gift Coupons Conveyance Allowance Food Coupons Medical Expense House Rent Allowance Superannuation Special Personnel Allowance COMPANY LEASED HOUSE Company will arrange the house through an authorized real-estate agent as per the choice of the employee. Security deposit by company. 12% percent Interest will be charged on deposit amount. The same will be debited in CTC 10% Perquisite Tax would be charged to the employee on his taxable income.

COMPANY OWNED ACCOMODATION No deposit no interest. Rent would be calculated @ 11 rupees per Square feet. Monthly rental would be charged to CTC Rental Amount will be exempted from tax 10% perquisite tax would be charged on employee. Security Deposit HRA House Rental Allowance HRA can be maximum 40% of Basic Salary. Deposit and rent has to be paid by employee by self To get the tax exemption the employee has to produce the rental agreements and rental receipts of the house. The employee cant claim this benefit if He/She has his own house.

OFFICE WEAR ALLOWANCE An amount of Rs.18, 000 P.A. is exempted for income tax. To get the exemption original bills to be submitted. Items covered under this head are as follows: Attire (2) Ties (3) Shoes (4) Socks (5) Tailoring charges

LTA - LEAVE TRAVEL ALLOWANCE CAR Company will arrange a car through a car lease agency. Employee can choose any make/model. The EMI that will be charged would be Rs. 2095/- per Lac per month. The EMI amount per Annum would be exempted from Income Tax. An Employee can block two months of Basic Salary as Leave Travel Allowance. He/She should take a minimum of 5 days leave (PL). In case of air travel-economy class fare is exempted and in case of rail travel second class AC fare is exempted. He/She can travel within India only. He/She has to produce the original travel tickets.

MAINTENANCE & RUNNING COST Maintenance and Fuel Cost will be exempted as follows. Maintenance cant exceed Rs. 25, 000 per annum. If CC of the car is less than 1000 Rs. 1, 11,000 per annum. If CC of the car is more than 1000 Rs. 1, 50,000 per annum. The perquisite Tax charged would be Rs. 1200 irrespective of the cc of the car The above exemption would be provided on submission of original bills. There would be no tax exemption against if the employee has his own car. The FBT Tax (Fringe Benefit Tax) for fuel and maintenance is6.73% on how much you have opted for. At the time of leaving CO. before 48 months then the employee has to pay FCV (For Closer Value) to the company from whom the loan is taken. If the employee is still stays after 48 months then employee will be charged 20% on the value of the car at that time for changing the name i.e. ownership.

CHILDREN EDUCATION ALLOWANCE Employee can claim exemption Rs. 2400 per year. This exemption is restricted up to two children. To pass the claim Employee has to submit the original bills. To get this benefit child age should be greater then 3.5 years.

GIFT COUPONS A sum of Rs. 5000/- would be exempted against the GiftCoupons. The company would provide coupons worth Rs. 5000/- duringthe months of October & November. Validity of this coupons is one year This coupon is accepted at major outlets in city. FBT Tax 16.67% is charged.

CONVEYANCE ALLOWANCE If the employee is not using companys car then and only then he can claim this option. To getting the exemption bills are not required. Conveyance allowance is up to Rs. 800/- per month.

FOOD COUPONS The Company gives SODEXHO passes in term of Food Coupons. Food coupons are provided on monthly basis of Rs. 1300. A sum of Rs. 15600 per annum will be exempted from the income tax

MEDICAL ALLOWANCE The employee gets an exemption of Rs. 15000 p.a. But to get exemption the employee must submit original bills.

HOUSE RENT ALLOWANCE Maximum 40% of basic salary can be calculated as HRA. But if employee owns the house in another state then he/she can ask for HRA and also opt for Company Leased House. Maximum 40% of basic salary can be calculated as HRA. But if employee owns the house in another state then he/she can ask for HRA and also opt for Company Leased House.

SUPERANNUATION 13-15% of basic salary is transferred to trust. It can be given to employee only after the completion of 5 years with the company The money is collected by a trust. To withdraw the money the employee has two options, either he can take the money monthly or he can take the money after5years.

SPECIAL PERSONAL ALLOWANCE Any amount which exceeds the limits of each allowance can be transferred under this head. SPA is fully taxable as per income tax rules.

LEAVES There are four types of leaves available with the employees. PAID LEAVE CASUAL LEAVE SICK LEAVE OPTIONAL LEAVE Additional Information no leaves can be clubbed with another leave. Minimum 90 days leave should be in balance for the encashment of leaves.

PAID LEAVE There are 30 days PL available with the employee after the conformation. The PL is available after 180 days from the date of joining. The employee can take only 3-5 PL at a single time

CASUAL LEAVE There are 5 days CL available to an employee from the date of joining. -3 days CL at a time.

SICK LEAVE There are 10 days SL available to an employee from the date of joining. The employee has to submit doctors certificate if the leave extends to 2 days.

OPTIONAL LEAVE There are 3 days OL available to an employee from the date of conformation.

JOINING FACILITATION Joining Day is the day when an employee recruited on the payrolls of the company. The HR Rep. should be in constant touch with the candidates till the date of joining. Collect the information from the candidate regarding the date and mode of arrival to the location of joining. Arrange for pick-up of the jinee & family from the station/airport and take them to the hotel as per the requirement. If pick-up arrangement cant be arranged then give complete address/directions to the hotel & the office to joinee.HR Rep. should give a brief introduction to the new joinee on the following: Geography of the Location/City/Town. Organization Structure. Status of the Project/Operations of the circle. Role of the employee.

RESIDENTIAL & MOBILE TELEPHONE Residential & Cellular Phone are allotted to employee based on the role and responsibility level and should not be treated as Perquisite. The Residential & Cellular Phone provided by the company will be on the name of company. Circle / Business Entity Head can take any of the following decisions with respect to Residential Telephone Connection: Obtain the telephone connection on priority basis by paying higher amounts. Provision of STD / ISD Facility. Reimburse only Telephone Rental expenses. Reimburse the Local Call Expenses.

ALLOTMENT OF DESKTOP PC / LAPTOP All full time permanent employees who will be available at their office desk for more than 80% of the working hours on daily basis will be provided with a desktop PC on their workstation. The circle/Business Entity head can take decision to allotment of Laptop in lieu of desktop PC based on the role of the employee.

INDUCTION Induction is also called orientation, which is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organization.

iNEP INDUCTION PROGRAM The Human Resources Department structures an appropriate induction programmes to orient the new employees to various businesses and services at Reliance communication. A two-day Induction program (iNEP- Infocomm new employees program) is offered to all new employees. The company which takes the induction program for reliance communications is RELNIS NISPARTA The induction program helps the employee to integrate in the new environment and provide an overview of the Organization as a whole. It also provides an opportunity to the new entrant to engrain the original values and ethics as well as the style of functioning.

This program is all about: Developing a shared understanding of Reliance communications vision and mission. Understanding their organization and business model. Familiarization with leaders at Reliance Communication. Networking and integrating with Reliance Communication employees.

This program provides information on: The history of reliance group The fundamentals of telecom business Introduces technologies and key concepts of the business. This program shares the companys strategic objectives, organization structure and processes and systems. Presentations are made from representatives from various business units and functions

EXITS
DEPUTATION & TRANSFER

DEPUTATION Due to business requirements, employee may be required to be posted to other location than your primary location. If such posting requires you to relocate from your base location beyond 29 days, then it is defined as deputation. If such posting requires you to relocate from your base location beyond 3 months, then it is defined as Transfer. Deputation letter is given and respective deputation allowance ispaid to the employees as per policy. TRANSFER Business needs may be required an employee to be transferred on permanent basis One circle to another circle One location to another location

Departmental head initiates the request for transfer of an employee and forwards the same to the circle HR Representative. Employee will receive transfer letter from Circle HR Representative of the primary circle/location. SEPARATION RHRS believes in treating all employees separating from the company with utmost dignity. RESIGNATION Resignation means employee voluntarily leaving the services of company either for professional or personal reasons. Employees must serve a written resignation, mentioning the relieving date to his/ her departmental head that will discuss and obtain the approval of the circle head. The accepted copy of resignation letter with the approved relieving date must be forwarded to the respective HR. Confirmed employees are required to give 3 months notice in advance and employees on probation are required to provide 15 days notice in advance.

JOB ABANDONMENT If an employee remains absent without leave or remains absent beyond the period of leave originally granted, he shall be considered as having voluntarily terminated his/ her employment without giving any notice unless he/ she: Returns to work within 8 days from the commencement of such absence. The employee gives an explanation to the satisfaction of the management regarding such absence.

TERMINATION Termination is an undesirable outcome for employee as well as the company, but may be necessary if the employee Violates the company policy Is unable to meet companys performance standards

EXPIRY OF TRAINING/ CONTRACT Employee under training /contract will be evaluated at the end of specified period by HOD and decision whether to extend his/ her service will be taken.

EXIT INTERVIEW An exit interview is typically a meeting between at least one representative from a company's human resources (HR) department and a departing employee. The departing employee usually has voluntarily resigned. The HR representative might ask the employee questions while taking notes. Prior to leaving, an exit interview is conducted to gather feedback and recommendations of the outgoing employee. Exit interview is a one-to-one discussion where voluntary views and suggestions are taken from the outgoing employee on what his/ her expectations had been at the time of joining the company and reason for leaving the company. The circle HR arranges the exit interview. Listed below are some of the exit interview questions that Reliance Communication asks to departing employees in Exit interview. To what extent did he/ she expect to experience following features of work at the time of joining the company

Job security Career prospects Good compensation Self development Welfare Operational freedom To what extent did he/ she find that features of work in the company

Reasons for leaving the company in terms of relevance Personal Professional growth related Lack of challenge in work Lack of promotional opportunities

Overall opinion about company, how much hike and other benefits offered by new company compare the one he/she is leaving, and is he/ she is interested in rejoining the Reliance Communication and on what conditions are collected.

FULL & FINAL SETTLEMENT When the employee leaves his/her job it is required that all his/her financial obligations are settled. Financial obligations like: Outstanding Advances/loans Any undertakings he/she has given to the company in terms of Cost of mobile as per company policy Opting for company lease car Or any other undertaking given by him/her

And turn in his/her identification cards, key and any other property, which he/she had issued. The full & final amount is paid to employee after recovering all advance/outstanding dues.

HR SUPPORT SYSTEM
SAP HR The Reliance ADA group is on the move to e-enable all HR functions and the employee interface. We are in the process of adopting state-of-the art ERP software - SAP, across all locations and businesses. As a service to the most valuable assets, i.e. the employees, the Group HR is upgrading its extensive web-enabled services into an internet enabled employee portal which will enable employees from across the country to interact with HR & Payroll for any requirement i.e. applying for and sanctioning leave, information on policies and procedures, entering expense claims, updating their own databases, etc. ESS (EMPLOYEE SELF SERVICE) / (EMPLOYEESUPPORT SYSTEM) ESS will enable you to interact with the SAP database, to view and maintain your personal data. ESS provides you with a host of services in the following areas. PERSONAL INFORMATION Employee can view and update their personal data such as Educational details Details of previous employers Family related information Change of marital status Change of residential address etc.

PAYROLL RELATED INFORMATION Employee can view their monthly updates on the following: Pay slips Income tax projections PF Statements

REIMBURSEMENT Employee can submit their claims of following reimbursement online Telephone bills

Local conveyance Medical reimbursement

ENTITLEMENTS Medical insurance Travel Entitlements INCOME TAX RULES\Details of exemptions and benefits as applicable to employee.

Conclusions and Recommendations

Company should focus on Campus Recruitment. It has been seen that there has been too much of work load recently results into stress. RHRS should come up with stress management activities. Refreshers Training & updates regarding the products must be given to each employee so that they can get the proper knowledge of the products. Front end should be there to deal with walk in customers.