HRM Assignment

On
TATA Motors

Group 2: The Incredibles
12/4/2013

Group members

1. RECRUITMENT AND SELECTION
Recruitment
The word recruitment has many meaning and plays an important role. Employees leave the
organization in search of greener pastures- some retire some die in saddle. The most important
thing is that enterprise grows, diversifies, and takes over other units-all necessitating hiring of

new men and women. In fact recruitment functions stop only when the organization ceases to
exist. To understand recruitment in simple terms it is understood as process of searching for
obtaining applications of job from among from which the right people can be selected. To define
recruitment we can define it formally as it is a process of finding and attracting capable
applicants for employment. The process begins when new recruit are sought and ends when their
application are submitted. The result is a pool of applicants from which new employees are
selected. Theoretically, recruitment process is said to end with receipt of application in practice
the activity extends to the screening applicants as to eliminate those who are not qualified for
job.
Purpose and Importance
The general purpose of recruitment is to provide a pool of potentially qualified job candidates.
Specifically, the purposes are to:
1. Determine the present and future requirement of the organization in conjunction with its
personnel planning and job analysis activities;
2. Increase the job pool of job candidates at minimum cost.
3. Help increase the success rate of the selection process by reducing the number visibly under
qualified or job application.
4. Help reduce the probability that job applicants, once recruited selected, will leave the
organization only after a short period of time.
5. Meet the organizations legal and social obligation regarding the composition of its workforce.
6. Being identifying and preparing potential job applicants who will be appropriate candidates.
7. Increase organization individual effectiveness in the short term and long term.
8. Evaluate the effectiveness of various recruiting technique and sources for all types of job
applicants.
Factors Affecting Recruitment
There are a number of factors that affect recruitment. These are broadly classified into two
categories: 1. Internal factors 2. External factors
Internal Factors
The internal factors also called as endogenous factors are the factors within the organization
that affect recruiting personnel in the organization. Some of these are:- Size of the organization
The size of the organization affects the recruitment process. Larger organization finds
recruitment less problematic than organization with smaller in size. Recruiting policy The
recruitment policy of the organization i.e. recruiting from internal sources and external sources
also affect the recruitment process. Generally, recruitment through internal sources is preferred,
because own employees know the organization and they can well fit in to the organization
culture. Image of the organization Image of the organization is another factor having its
influence on the recruitment process of the organization. Good image of the organization earned
by the number of overt and covert action by management helps attract potential and complete
candidates. Managerial actions like good public relations, rendering public service like building
roads, public parks, hospitals and schools help earn image or goodwill for organization. That is
why chip companies attract the larger numbers of application. Image of the job, Better
remuneration and working conditions are considered the characteristics of good image of a job.
Besides, promotion and carrier development policies of organization also attract potential
candidates.

External Factors
Like internal factors, there are some factors external to organization, which have their influence
on recruitment process. Some of these are given below:- Demographic factors As demographics
factors are intimately related to human beings, i.e. employees, these have profound influence on
recruitment process. Demographic factors include age, sex, Literacy, economics status etc. Labor
market Labor market condition I.e. supply and demand of labor is of particular importance in
affecting recruitment process. E.g. if the demand for specific skill is high relative to its supply is
more than for particular skill, recruitment will be relatively easier.
Recruitment and selection in Tata motors:
Tata motors believe in providing Equal Employment Opportunities:
At Tata Motors, there is a written policy on non-discrimination and equal opportunity for
employment, which is the basis for all recruitment. The policy is as under:

As part of its Recruitment Practices, TATA MOTORS is committed to provide Equal
Opportunity to all eligible applicants for employment without any discrimination against their
gender, race, religion, caste, colour, ancestry, marital status, nationality and disability.
Opportunity for employment will be solely based on eligibility and merit of the applicant. Career
growth opportunities will be based entirely on individual merit.

692 of their permanent employees are females. Even in the training schemes, they have inducted
a large number of female trainees and they have been given on-the job training in welding,
electronic mechanics etc hand in hand with their male counterparts.

The purpose of this policy is to provide uniform guidelines for the recruitment and selection of
employees at Tata Motors.
The recruitment and selection process includes:
Creating a new position.
Filling an existing vacancy.
Hiring a person.
Reclassification of a position. Transferring an employee from one position to another.

All requests should be submitted at least 30 days prior to the effective date of the requested
action. This will require proper planning. Once a person is identified for a position, the following
steps should be completed:

I. The Office of Human Resources will assist the hiring manager/supervisor in completing
the Hiring Recommendation form.
II. The Hiring Recommendation form will be routed for the necessary signatures and
returned to the Office of Human Resources after completion.
III. Once the candidate returns the signed offer letter, the Office of Human Resources will
distribute copies to the Office of the Manager, the appropriate Manager, payroll, the
appropriate collective bargaining unit and any other office that has a need to know.

3. Responsibilities
The purpose of the search committee is to evaluate candidates for vacant positions on campus
and make recommendations for hire. The Office of Human Resources will oversee each search
committee and monitor the committees progress to ensure that positions are being filled
expeditiously. In addition, the Office of Human Resources must ensure that the process remains
fair.

Selection

Selection is the process of picking individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. A formal definition of Selection is:
It is the process of differentiating between applicants in order to identify (and here) those with a
greater likelihood of success in a job. Recruitment and selection are the two crucial in the HR
process and are often used interchangeably. There I, however, a fine distinction between the two
steps. While recruitment refers to the process of identifying and encouraging prospective
employees to apply for jobs, selection is concerned with picking the right candidates from the
pool of applicants. Recruitment is said to be positive in its approach as it seeks to attract as many
candidates as possible. Selection, on the other hand, is negative in its application in as it seeks to
eliminate as many unqualified applicants as possible in order to identify the right candidates.

Role of Selection

The role of selection in an organizations effectiveness is crucial for at least, two reasons; first,
work performance depends on individuals. The best way to improve performance is to hire
people who have the competence and the willingness to work. Arguing from the employees
viewpoint, poor or inappropriate choice can be demoralizing to the individual concerned (who
finds himself or herself in the wrong job) and de-motivating to the rest of the workforce.
Effective selection, therefore, assumes greater relevance. Second, cost incurred in recruiting and
hiring personnel speaks about volumes of the selection. Costs of wrong selection are greater.



Selection in TATA Motors

In selecting the successful candidate, the panel must make a decision based on the merit and
eligibility of the candidates as judged by:
Content of application
Qualifications (if required for the post)
Performance at Interview
Outcome of any selection tests
Right to work in the country.
The panel must seek to ensure that candidates appointed will actively promote the IPCCs Core
Values.



2. 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 DEVLOPMENT

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 realized the
importance of corporate training. Training is now considered as more of retention tool than a
cost. The training system in Indian Industry has been changed to create a smarter workforce and
yield the best results

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 departments contribution at a level suitable to the
organizations needs.

Societal Objectives ensure that an organization is ethically and socially responsible to the
needs and challenges of the society.

Training and Development in TATA Motors

TATA Motors are committed to building the competences of its employees and improving their
performance through training and development. Their focus is on identifying gaps in our
employees competencies and preparing employees for changes in competitive environments, as
well as to meet organizational challenges.

Methods to Identify of Training Needs of Employees in TATA motors

By performance management and appraisal discussion
By linking the vision and mission of company
By linking to pre-decided competencies that every manager should have

Tata motors are following a technique known as Big-scale cost reduction (BSCR) for its training
and development of the employees of the company. They have adopted this technique as most of
the TATA GROUP companies have implementing the technique. Due to its main focus is on the
cost reduction on a sustainable basis. With this technique alone Tata motors have saved over
2000crores in three years.
Big Scale Cost Reduction is a major agenda of all organizations, as competition demands
elimination of all varieties of slack and inefficiencies. Companies strive to reduce cost on a
continuous basis. The cost reduction initiative has to be focused on major cost elements
and broad based across all functions. This program is intended to create a momentum in the Tata
Group for big scale cost reduction. The focus will be on implementing cost reduction initiatives
on a sustainable basis. Three major Group companies have already implemented BSCR with
close involvement of McKinsey's, and benefited through large scale cost reduction. It has been
estimated, for example, that through BSCR, Tata Motors alone has saved over Rs.2000 crores in
3 years. This program is intended to roll out such an initiative in other group companies as well.
This program, the first step in the roadmap, viz. creating awareness of the BSCR Program, is
targeted at the other Group companies. The program will present a framework that Group
companies could use for reducing cost through a process- driven approach. The program will
attempt to learn from the best practices that the major Tata Companies have adopted, as
well as the other practices that McKinsey's have developed and used. The Program will also
build practical linkages with the workplace through integration with the TBEM.

The following will be the rough contents of each half-day session.
1. Open your eyes!
Context setting
Case studies of step cost position improvement

Key requirements for BSCR
Open mind
Broad based involvement
Top management commitment
Rigorous tools and processes
Company-wide institutionalization
2. Get your tools!
Overview of process and methodology for the relevant cost reduction program
Relevant toolkit
o Total Cost of Ownership
o Creative Idea generation sessions
o Design benchmarking
o Linear performance pricing
o Clean sheet cost build-ups
o Best of benchmarking
o Value/cost driver analysis
3. Personal touch!
Problem solving leadership
o Team effectiveness
o Collaborative skills
o Understanding type differences
o Listening and asserting
o Influencing skills
o Managing conflict
o Leading meetings
o Negotiation skills
Leadership styles
o Individual leadership effectiveness
o Leadership action.


3.PERFORMANCE APPRAISAL
What is performance appraisal?
Performance appraisal is defined as the process of accessing the performance and progress of an
employee or a group of employee on a given job and their potential for future development. It
consists of all formal procedures used in working organisations and potential employees.
According to Flippo performance appraisal is a systematic periodic and important rating of an
employees excellence in matters pertaining to his present job and his potential for a better job.
Characteristics:
1. Performance appraisal is a process.
2. It is the systematic examination of strengths and weakness of an employee in terms of his
job.
3. It is scientific and objective study. Formal procedures are used in the study.
4. It is an ongoing and continuous process wherein the evaluations are arranged periodically
according to a definite plan.
5. The main purpose of performance appraisal is to secure information necessary for making
objective and correct decision of an employee.

Process:
The process of performance appraisal:
1. Establishing performance standards
2. Communicating the Standards
3. Measuring Performance
4. Comparing the actual with the standards
5. Discussing the appraisal
6. Taking Corrective Action
Limitations:
1. Errors in Rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
Methods of Performance Appraisal:
The foregoing list of major program pitfalls represents a formidable challenge, even considering
the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing
away with appraisals themselves is like trying to solve the problems of life by committing
suicide. The more logical task is to identify those appraisal practices that are (a) most likely to
achieve a particular objective and (b) least vulnerable to the obstacle. The best-known
techniques will be treated most briefly.
Essay Appraisal
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individuals strengths, weaknesses, potential, and so on. In most selection situations, particularly
those involving professional, sales, or managerial positions, essay appraisals from former
employers, teachers, or associates carry significant weight.

Graphic Rating Scale
This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is
he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that
vary with the job but usually include personal traits like reliability and cooperation. It may also
include specific performance items like oral and written communication.
Field Review
The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employees rating with them to (a) identify areas of inter-rater disagreement,
(b)help the group arrive at a consensus, and (c) determine that each rater conceives the standards
similarly.
Forced-Choice Rating
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a third
party.
Management by Objectives
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so familiar
to most managers that I will not dwell on it here.
Ranking Methods
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
judgment to which a host of additional facts and impressions must somehow be added. There is
no single form or way to do this. The best approach appears to be a ranking technique involving
pooled judgment. The two most effective methods are alternation ranking and paired comparison
ranking.1. Alternation ranking: Ranking of employees from best to worst on a trait or traits is
another method for evaluating employees. Since it is usually easier to distinguish between the
worst and the best employees than to rank them, an alternation ranking method is most popular.
Here subordinates to be rated are listed and the names of those not well enough to rank are
crossed. Then on a form as shown below, the employee who is highest on the characteristic
being measured and the one who is the lowest are indicated. Then chose the next highest and the
next lowest, alternating between highest and lowest until all the employees to be rated have been
ranked.
Performance appraisal in Tata Motors
Appraisal and reward appraisal:
New appraisal system based on KRAs and targets
Review of targets at regular intervals
People development an important KRA
Rewards:
1. Promotions based on performance.
2. Productivity and profit link incentive schemes.
3. Training including long term..
4. Selection of supervisors: performance/attendance/discipline record; written test and
interview.
5. Job rotation-Including inter functional.
Retention and employee welfare:
1. Residential colonies for employees.
2. Hospitalization and reimbursements-on actual without ceiling.
3. Vehicle loans.
4. Household equipment loans.
5. House building advance.
6. Annual advance.
7. PF trust-for better management.
8. Proposed MUL pension schemes.
Suggestion scheme and quality circle
For better quality and productivity
Through involvement of all employees and team work.
Criteria:
Idea
Efforts
Result: Cost of reduction / Q Improvement/ Productivity Improvement
HR Initiatives
Realigning organization culture based on new vision & values.
Objective performance management & development system.
Performance linked reward and recognition system.
Career planning & promotion policy.
Revised recruitment policy.
Competency mapping.
Strong focus on training initiatives build a learning organisation- continuous value
addition to professional skill- customized training- training to the personnel of business
partners.
Internal Communication.
Union Alignment.
Tata Motors appraisal system:
The appraisal model which is followed on annual basis starting from the month of April till
March has been extremely effective for the employees of Tata Motors. Half yearly appraisal
system, was started a year ago. This activity was started keeping in mind the dynamic behavior
of the industry. With a half yearly appraisal system, the employee gets feedback twice a year,
which gives him/her a chance to re-look at his/her approach of working. Necessary steps are also
undertaken for employees who deviate from their goals. They have introduced a comprehensive
system of quarterly appraisals where an employee selects his/her own goals or Key Result Area
(KRAs) every quarter and him/her self assesses his/her own performance against these
parameters. At Spice jet while formally the process is annual, for several of the frontline
employees, there are performance related quarterly payouts designed to reward them with
incentives for their performance. This has resulted in quarterly assessments which are aligned
overall to annual KRAs Tata Motors have a midterm review for all those who have been
performers, thereby creating an expectation amongst the employees of an increase in salary twice
a year if they perform well. They used to have annual appraisals earlier, but then they felt that the
incentives are not enough to motivation the sales department, which generates major revenues or
the organization. They do give monetary increments and designation hikes, according to the
performance. If the employee deserves both, they give him/her both the advantages otherwise at
least one of them. Designation hikes are given annually. These are proportional to effort of the
individual, team and the department. Designation changes are given keeping in mind the
immense responsibility one has to shoulder in a high rank. Monetary increments are primarily
incentives that are given either in cash or kind for example they give them travel package within
India or outside. Also, they have an accumulating incentive scheme in which employees can
accumulate incentives and get them annually with interest. To meet the new demands of the
business and to motivate the employees for higher performance, they have started linking a part
of the salary increase to individual performance measures as variable pay. At present, between 6
to 8 percent of the compensation is variable pay, which they are planning to increase over a
period of time. Executives are categorized in levels based on their performances in a relative
ranking and based on outcome performance-linked pay is awarded.
Goal-Setting Model
A goal setting program in an organization requires careful planning. As shown in the figure, the
first three factors in goal setting process are establishing the goal, achieving goal commitment,
and overcoming resistance to goal acceptance. Goals can be established in a variety of ways.
Best way is to set by joint participation between the employee and the supervisor. This method
often leads to employee commitment, a crucial ingredient in effective goal setting. Goal Setting
S.M.A.R.T. Goals Specific precise and detailed Measurable with criteria for determining
progress and success Achievable attainable and action-oriented Realistic relevant and
aligned Time-related grounded within a time-frame
For this purpose, an online template is circulated in the organization. Superiors fill out that form
keeping in view the performance of their subordinate over the year. This feedback becomes the
basis of the promotion of the employees. Superior is responsible for categorizing the employees
in four categories, namely ABCD. This categorization is done both on the basis of performance
and the goals they were given. This whole system is commonly known as90 degree appraisal
system also called 2 tiers.