Human Resource

Introduction

Human resources is a term used to describe the individuals who comprise the workforce
of an organization, although it is also applied in labor economics to, for example,
business sectors or even whole nations. Human resources is also the name of the function
within an organization charged with the overall responsibility for implementing strategies
and policies relating to the management of individuals.

In simple terms, an organization's human resource management strategy should maximize

return on investment in the organization's human capital and minimize financial risk.
Human Resources seeks to achieve this by aligning the supply of skilled and qualified
individuals and the capabilities of the current workforce, with the organization's ongoing
and future business plans and requirements to maximise return on investment and secure
future survival and success. In ensuring such objectives are achieved, the human resource
function purpose in this context is to implement the organisation's human resource
requirements effectively but also pragmatically, taking account of legal, ethical and as far
as is practical in a manner that retains the support and respect of the workforce

SANGHAVI EXPORT has dynamic HR managers in Mr. Yogesh Surti and assistant
manager in Mr. Rakesh Maru who work to make the roots of the company strong.
Responsibility of the human resource lies on their shoulders.

The HR manager of Sanghavi Export has been given all the authorities required for the
job.
When I approached Mr. Rakesh Maru he defines HRM as “HR is like human heart, like
heart pumps blood into whole body in the same way HRM provides employee to the
whole organization.”

Importance of HR in Diamond industry

Dealing with Diamonds, HR becomes all the more important. This is because
manufacturing a diamond requires a lot of manual and labour job. Machineries can only
be used for support and guidance but it’s the ultimate effort of the employee working on
that diamond which makes ma simple piece of stone so valuable. Thus it is very
important that right employee is chosen for the job.

So HRM can be considered as one of the most important activity in Sanghavi Export.
HR department in the company carrys out many activities such as HR planning, job
analysis, recruitment, selection, placement, training and development, remuneration,
motivation, communication, safety and health, welfare, industrial relation, dispute
settlement etc.
The company has approximately 45oo employees working for the company at different
levels.
Human Resource Planning

Human Resource Planning can be defined as “the process of moving from the current
manpower to future manpower”
Sanghavi Export has grown from a small plant to a huge tree. The company is expanding
year after year, setting up new unit, machineries, plans. These decisions should be backed
by good HR planning to make them a success.

With good HRP company can rely on it and hence top level can make important
decisions regarding growth and development of the company with confidence, support
and less risk. Company’s accurate HR planning and implementation helps in optimum
utilization of the existing human resource and also help to forecast futute requirements of
human resource.

HR Department in the company has the following activities:-

Functions Designation
Time Keeping Automatic Machine
Security
Supervisor
Salary Calculation Supervisor
Department Heads
Salary Payment Director
Department Heads
Recruitment Department Heads
HR Manager
Industrial Relation Director
HR Manager
Welfare Measures Director
HR Manager
Recruitment Process of the company
Recruitment refers to the process of attracting, screening, and selecting qualified people
for a job at an organization or firm.

Process of identifying and hiring best-qualified candidate (from within or outside of

an organization) for a job vacancy, in a most timely and cost effective manner.
There are mainly two factors which affects the recruitment process.
Factors affecting recruitment process
Company used both the internal and the external source for recruitment.
Sanghavi Exports believes in trustworthy employee so major part of the recruitment is
done through internal source as company shows trust in the employees and has good
relations. 98% of recruitment is done internally in co-ordination with the HR manager
and the departmental heads.
Internal Sources
1. Present Employee
2. Employee Reference
External Sources
1. Advertisement
2. Campus recruitment
3. Walk-ins

Internal Sources
1. Present Employee
Most of the times company give transfers and promotions to the current employees to the
different department and thus try to fill the vacancy internally. It has many benefits e.g.
as the employee is already working in the organization , he has the 1st hand knowledge
about everything. Moreover, it encourages competent individuals who are ambitious,
results im good public relations and boost the morale of the employee.

2. Employee Reference
This is the most frequently used source of the company. Diamond needs skilled and
reliable labour. Chances of theft or ignorance leading to damage in the diamond proves
costly for the company. So relying on present employees and their suggestions company
is able reach skilled labour at low cost. So preference is given to the candidates referred
by the present employees of the firm. This again results in increased trust and the
prospective employees can be reached easily with minimum efforts.
External Source
1. Print Media
Company gives job offers in local Gujarati newspapers. Moreover company also sponsor
local shows, social events etc. to make local prospective candidates to aware of the job
requirement. This also help in building good relations with local public.
2. Campus Recruitment
Company recruits students from local institutes. Campus recruitment programms are
organised in local institutes pertaining to diamond industry. Indian Diamond Institute is
one such college which gives company its highly skilled employees.
3. Walk-ins
Company has walk-ins for the candidates at the middle level of organisation.
Applications are invited from the job seekers. After preliminary round he goes through
the selection process.

Selection
Selection can be defined as process of choosing the most suitable person out of all the
applicants.
Selection is a process of picking individuals out of the pool of job applicants with
requisite qualifications and competence to fill jobs in the organization.
Steps in selection process
Preliminary Interview :-
The candidate is asked to fill form and on the basis of form, candidates are short listed for
a particular post. It is checked if the candidate qualifies for the post or not on the basis of
the information provided by the applicants. Unwanted candidates are avoided at first step.
Practical Test
This is the most Important stage for selection. The skill of the candidate is put on test by
giving him the actual task required for the job. This step need careful scrutiny of the
skills of the person. Hes tested on various parameters and accordingly marks are allotted.
If the candidate is able to attain cut off marks then he qualifies for medical test.
Department heads are the ones who test the skills of the employee.
Medical Test
The selected candidates go through a very basic medical test. Candidate’s physical
fitness required for the job is tested. Further hes tested of hes not suffering from any
disease that may pose danger for his co-workers.
Reference Check
Nature of the business makes reference check very important . It is required to check the
information given by the candidate is true or not. Company needs very reliable
employees so references are all the more importance in selection of an employee.
Final Decision
Department head takes the final decision on the selection of the candidate. If the
candidate has passed all the tests and is approved by the head of the department, he gets
his appointment letter from the HR manager. Hes asked to join from a certain date.
Training and Development
In the field of human resource management, training and development is the field
concerned with organizational activity aimed at bettering the performance of individuals
and groups inorganizational settings.
It is an attempt to improve current or future performance of the employee by increasing
his ability to perform through learning. The need for training and development is
determined by the employee’s performance deficiency, computed as follows:

Training and development need = Standard performance-actual performance

The company arranges for training programmes for the workers. Company send the
employees to IDI for training where their skills are sharpened and new techniques are
taught. These programms are mainly arranged by the company whenever new equipments
or machineries are purchased, And also to improve the skills of the employees. Even
management level employees are encouraged to acquire further knowledge. Company has
some managers doing their masters degree while working with the company.
Moreover, company also conducts managerial training programms outside or inside the
the building for the management level employees. They are also sent to attend
programms that are held ouside the organisation.
Differetnt Training/Confirmation Record
Training Topic :- safety, healthcare and environment procedures
Details of training:- Training on fire fighting
Mock Drill
Date :- 10-1-2009
Venue :- Company Premises-Assembly points
Training incharge :- Mr. Kirit Hapani (safety officer)
Mr. Yogesh Surti ( HR manager)

Training Topic :- First Aid and Health procedures

Details of training:- First Aid Training
Date :- 10-1-2009
Venue :- Company Premises-Reception Hall
Training incharge :- Dr. Vimesh Jani(M.D.,D.I.H.)

Training Topic :- BPP Awareness Training Programms

Details of training:- In detail training on BPP Awareness Programme
Date :- 24-1-2009
Venue :- Company Premises-Reception Hall
Training incharge :- Mr. Aagam Sanghavi (Director)
Mr. Yogesh Surti (HR Manager)

Training Topic :- Human Rights

Details of training:- Awareness about human rights
Date :- 21-1-2009
Venue :- Company Premises-Reception Hall
Training incharge :- Dr. Premdan Charan
Mr. Yogesh Surti

Different Welfare Activities

Company provides its employees with various facilities. Company pays good attention
towards the welfare of the employees. Due to nature of the job employees tend to shift
jobs thus it is very important to build trust among the employees and provide them with
facilities that are required to them.
1. Intramural Facilities
 • Urinals and Restrooms
• Washing and Bathing facilities
• Rest shelters
• Canteen
• Uniform
• 24*7 in house ambulance
• Recreational facilities
• Child centre
2. Extramural Facilities
• Housing Accomodation
• Transport
• Holiday homes
• Interest free loans
• Vocational guidance
• Picnics

Of course some of these facilities can not be provided to all the employees thus they are
limited to upper level employees.
Apart from all the facilities various other programms are conducted by the company:-
1. Blood Donation camps
2. Helping hands for the Physically and mentally challeneged
3. Donations to different school, colleges and institutions
4. Managerial Training Programmes
5. Mock Drill
6. Seminars and Presentation
Every year cricket competition is organised under the name of ‘Sanghavi Premeier
League’ where teams from with in the organisation takes part. Similar programms and
events are organised to increase the bond between the employees and the organisation.
Wage Policy
There are almost 6000 employees working for the company. The wage policy is of two
types.
Piece wage system:-
The lower level workers who work on the diamond are paid at piece wage policy. These
workers work in the production department at different levels. There are various sub
departments in production, each department has a different task. Each sub department has
its wage rate. The employee is paid according to the number of diamonds he has worked
upon and the wage rate prevailing in the department. Performance is also considered as to
how much value addition is made on diamond by the employee .
Fixed Salary:-
The office workers or the managerial level employees are on fixed salary basis. They are
assigned salary on the basis of their job. Moreover, workers who are not under piece
wage system are under fixed salary. Various department heads, rough assortment, polish
assortment, cleaving department, lotting department are paid fixed salary.
Various Records
Company has a vast number employees working. HR manager needs to keep all the
information about the employees. For that, various records are maintained by the
department.

1. Employee Bio-Data
2. Records of performance
3. Monthly record of salaries and wages
4. Attendance record
5. Time record
6. Record for the participation of employees in various programmes
7. Records of promotion, demotion and transfer of the employee
8. Records of training given to the employee
9. Records of the reference of the employee
10. Record of Provident Fund provided to employees
Human resource Audit
HR Audit means the systematic verification of job analysis and design, recruitment and
selection, orientation and placement, training and development, performance appraisal
and job evaluation, employee and executive remuneration, motivation and morale,
participative management, communication, welfare and social security, safety and health,
industrial relations, trade unionism and disputes and their resolutions.

HR Audit very much useful to achieve the organizational goal and also it is vital tool
which helps to assess the effectiveness of HR functions of an organization.

Scope of Audit:
Generally, human nature can not be measured and thus their problems are not only
confined to HR departments. It is quite broad in nature. Company covers following areas
in HR.
1. Audit of all HR functions.
2. Audit of managerial compliance of personnel, policies, procedures and legal
provisions.
3. Audit if corporate strategy regarding HR planning, staffing, Renumerations etc.
4. Audit of HR climate on employee motivation, morale and job satisfaction.

Benefits of HR Audit
Benefits that the company has through the HR Audits are
• Estimation of contribution of HR Department
• Reduce HR cost
• Increased professionalism in the Department
• Smooth problem solving
• Sound performance appraisal system
• Systematic job analysis
• Smooth adoption of changing mindset
Employee turnover
Employee turnover is the rate at which an employer gains and loses employees.
Simple ways to describe it are “how long the employees tend to stay” or “the rate of
traffic through the revolving door”.
Turnover is measured for individual companies and for the industry as a whole. If a
company has a high turnover it means that the employees’ tenure in the company is less.
This might be harmful for the company it shows that employees have little faith in the
company
Employee turnover is moderate in the company. The nature of the job results in high
turnover. Employees tend to shift jobs in search of higher pay as they are mainly
employed on piece wage system. However company is able to retain most of its
employee by winning their trust and giving them additional perks and facilities.

Absenteeism Rate
Absenteeism Rate is quite less in the company. It is about 5% . Company provides with
exceptional work environment for the employees. Moreoever, if a employee is taking a
leave he arranges for a replacement from within the organisation. Attendance is
automated in the company and every machine has a security guard to check the fraud of
attendance.