A Project on Human Resource Information System at Amul In the subject of Organisational Behaviour Submitted to University of Mumbai For Semester III of Master of Commerce By Shruti Vikram (Management 137) Under the Guidance of Prof Swati Chaplot 1
A Project on
Human Resource Information System at Amul
In the subject of Organisational Behaviour
Submitted to
University of Mumbai
For Semester III of
Master of Commerce
By
Shruti Vikram
(Management 137)
Under the Guidance of
Prof Swati Chaplot
Year 2013 – 2014
e-mail :[email protected], [email protected] Tel. : 26609320 Website : www.lsraheja.org.in
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SADHANA EDUCATION SOCIETY’S
L. S. RAHEJA COLLEGE OF ARTS AND COMMERCE RE-ACCREDITED BY NAAC WITH ‘A’ GRADE
Juhu Road, Santacruz (West), Mumbai – 400 054.
DECLARATION BY THE STUDENT
I, Shruti Vikram student of M Com Part-II Roll Number 137 hereby declare that the
project for the Paper Organisational Behaviour. Submitted by me for Semester –III
during the academic year 2013-14, is based on actual work carried out by me under the
guidance and supervision of Prof Dr Swati Chaplot.
I further state that this work is original and not submitted anywhere else for any
examination.
Signature of Student
EVALUATION CERTIFICATE
This is to certify that the undersigned have assessed and evaluated the project on Human Resource Information System at Amul submitted by Shruti Vikram student of M Com III.
This project is original to the best of our knowledge and has been accepted for Internal Assessment.
Internal Examiner External Examiner Principal
L. S. RAHEJA COLLEGE OF ARTS & COMMERCE
Internal Assessment: Project 40 Marks
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Name of the Student Class Division R.NO
First name : Shruti
Father’s Name:
Surname : Vikram
M COM
PART II
Management 137
Subject: Organisational Behaviour
Topic for the Project: Human Resource Information System at Amul
Marks Awarded Signature
DOCUMENTATIONInternal Examiner (Out of 10 Marks)External Examiner (Out of 10 Marks) Presentation (Out of 10 Marks)
Viva and Interaction (Out of 10 Marks)
TOTAL MARKS (Out of 40)
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ACKNOWLEDGEMENT
I am thankful to everyone who supported me to complete my project effectively and
moreover, on time.
I am equally grateful to my Professor Swati Chaplot. She gave me moral support and
guided me in different matters regarding the topic. She has been very kind and patient,
whilst suggesting to me the outlines of this project, and correcting my doubts. I thank her
for her overall support.
Last but not the least, I would like to thank my mother and my husband who helped me a
lot in gathering different information, collecting data and guiding me from time to time in
completing this project. Despite their busy schedules, they gave me different ideas to help
make this project unique.
Thanking you
Shruti Vikram
M.Com – II [management - 137]
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INDEX
Sr. No. PARTICULARS Page No.
1 Executive Summary 6
2 Organization Profile 7
3 Introduction 8
4 History of Amul Organization 11
5 Organization Structure 14
6 Human Resource Department 15
7 Human Resource Information System 25
8 HRM’s Changing Environment 32
9 Case Study On Human Resource Information System 36
10 Futuristic Vision 42
11 Influencing Factors of 21st Century 44
12 Conclusion 45
13 Bibliography 46
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Executive Summary
AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and
from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which
was not possible in earlier years. This union was born on 14th December 1946. The union
provides facilities to its members like more return, satisfactory price, insemination, first
aid, group Insurance, cattle food at confessional price etc.
I have done case analysis on HRIS of AMUL and from that I have come to know how
organization operates and how the functions have been carried in the organization. From
this is case I have come to know how a wide organization like AMUL manages its
AMUL dairy has five main departments like finance, personnel, commercial, milk
procurement and production. The finance department does the clerical work and takes
care of inflow and outflows of the cash. The other work of finance Department is to audit
of annual work.
The personnel department handles the work regarding personnel like appointment,
recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc.
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Organization Profile
Name : Kaira District Co- Operative Milk Producers’
Union Limited, Anand.
Form : Co-Operative Sector under the Co- Operative Society Act.
Reg.Office : Kaira District Co-Operative Milk Producers Union Ltd,
Anand -3881001. Gujarat, India.
Promoters (1) Shri Tribhuvandas Patel
(2) Shri Morarji Desai
(3) Shri Vallabh Bhai Patel
(4) Dr. Varghese Kurien
Auditors : Special Auditors (Milk), Milk Audit Office Anand.
Socities : 1113.
Members : 6, 31,333.
Office Time : 10:00 A.M To 06:00 P.M.
Premises : 49.55 Acres.
Registration : 14th December, 1946.
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Introduction
Human Resource Management:
Human Resource Management has come to be recognized as an inherent part of
management, which is concerned with the human resources of an organization. Its
objective is the maintenance of better human relations in the organization by the
development, application and evaluation of policies, procedures and programmes relating
to human resources to optimize their contribution towards the realization of
organizational objectives.
In other words, HRM is concerned with getting better results with the collaboration of
people. It is an integral but distinctive part of management, concerned with people at
work and their relationships within the enterprise. HRM helps in attaining maximum
individual development, desirable working relationship between employees and
employers, employees and employees, and effective modeling of human resources as
contrasted with physical resources. It is the recruitment, selection, development,
utilization, compensation and motivation of human resources by the organization.
Human resources may be defined as the total knowledge, skills, creative abilities, talents
and aptitudes of an organization's workforce, as well as the values, attitudes, approaches
and beliefs of the individuals involved in the affairs of the organization. It is the sum total
or aggregate of inherent abilities, acquired knowledge and skills represented by the
talents and aptitudes of the persons employed in the organization.
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The human resources are multidimensional in nature. From the national point of view,
human resources may be defined as the knowledge, skills, creative abilities, talents and
aptitudes obtained in the population; whereas from the viewpoint of the individual
enterprise, they represent the total of the inherent abilities, acquired knowledge and skills
as exemplified in the talents and aptitudes of its employees.
The Amul – Meaning
AMUL means “priceless “in Sanskrit. A quality control expert in Anand suggested the
brand name “AMUL” from the Sanskrit word “Amoolya” variants, all meaning
“priceless” are found in several Indian languages. Amul products have been used in
millions of home since 1946.
Today Amul is a symbol of many things; of high – quality products sold at reasonable
prices; triumph of indigenous technology; of the marketing savvy of a farmer’s
organization and proven model for dairy development.
Motto
The main motto of AMUL is to help farmers. Farmers were the foundation stone of
AMUL. The system works only for farmers and for consumers, not for profit. The main
of AMUL is to provide quality products to the consumers at minimum cost. The goal of
AMUL is to provide maximum profit in terms of money to the farmers.
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Vision
Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The
AMUL apparition was to run the organization with co-operative of four main parties, the
farmers, the representatives, the marketers, and the consumers.
Quality Policy
The motivated and devoted work force of AMUL are committed to produce whole some
and safe foods of excellent quality to remain market leaders through deployment of
quality management system, state of art technology innovation and eco- friendly
delightment of customer and betterment of milk producer.
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History
In early 1940’s a farmer in Kaira district, as elsewhere in India, derived his income
almost entirely from seasonal crops. The income from milk was paltry and could not be
depended upon. The main buyers were milk traders of Polson Ltd.-a privately owned
company that enjoyed monopoly for supply of milk from Kaira to the Government Milk
Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the
private traders.
However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the
freedom movement. Sardar Patel advised the farmers to sell the milk on their own by
establishing a cooperative union, instated of supplying milk to private traders. Sardar
Patel sent the farmer to Shri Morarji Desai in order to gain his Co-operation and help.
Shri Desai held a meeting at ‘Samrkha’ village near Anand, on January 4, 1946. He
advised the farmers to from a society for collection of the milk. These village societies
would collect the milk themselves and also decided prices for that which would be
profitable for them. The district union was also from to collect the milk from such village
cooperative societies and to sell them. It was also resolved that the government should
asked to buy milk from the union.
However, the government did not seem to help farmer by any means. It gave the negative
response by turning down the demand for the milk. To respond to this action of
government, farmer of Kaira district went on a milk strike. For 15 days not a single drop
of milk was sold to the traders. As a result the Bombay milk scheme was severely
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affected. The milk commissioner of Bombay then visited Anand to assess the situation.
Finely he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at village and district level to collect and sell
milk on a cooperative basis, without the intervention of government. Mr. Verghese
Kurien had main interest in establishing union who was supported by Shri Tribhuvandas
Patel who convinced farmers in forming the cooperative unions at the village level. ‘The
Kaira District Co-operative Milk Producers’ Union’ was thus established in Anand and
was registered formally under section 10 of Bombay Act VII of 1925 on December 14,
1946. Since then farmers are selling all the milk in Anand through cooperative union. In
1955 it was commonly decided the sell milk under the brand name ‘Amul’.
At the initial stage only 250 liters of milk was collected every day. But with the growing
awareness of the benefits of the co-cooperativeness the collection of milk increased.
Today Amul collect 50, 00,000 liters of milk every day. As the milk is perishable
commodity it became difficult to preserve milk for a longer period. Besides when the
milk was to be collected from the far places there was a fear of spoiling of milk. To
overcome this problem the union thought to develop the chilling unit at various junctions,
which would collect the milk and could chill so as to preserve it a for a longer period.
Thus, today Amul has more than 168 chilling centers in various villages. Milk is
collected from almost 1097 societies.
With the financial help from UNICEF, assistance from the government of New Zealand
under the Colombo plan, of Rs. 50 million for factory to manufactory milk powder and
butter. Dr. Rajendara Prasad, the president of India laid the foundation on November 50,
1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul
dairy on November 20, 1955.
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A plant to manufacture balanced cattle feed was formally commissioned on October 31,
1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request of the
government of India, a new dairy with a capacity to manufacture 40 tons of milk powder
and 20 tons of butter a day was completed in 1963. This was meant to meet the
requirement of India’s defense forces. The dairy was declared open by Shri Morarji Desai
in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-protein
weaning food, chocolate and malted food at Mogar, about 8 km south of Anand.
In September, 1981, the second cattle feed plant at ‘Kanjari’ were started. The succession
of the co-generation project on September 11, 1985, marked a milestone on the energy
front when two gas turbine generators of 1.5 MW each based on natural gas, were
commissioned. On October 31, 1992, Dr. V. Kurien chairman, National Dairy
Development Board, laid the foundation of Kaira Union’s third dairy with a processing
capacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at
‘Khatraj’ with capacity for 20 Metric Ton of cheese per day, began in February, 1994.
Also in 1994, Kaira Union put up bread spread plant at ‘Mogar’ with the assistance from
National Dairy Development Board.
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Organization Structure of Amul
Board of Director
Chairman
Managing Chairman
General Manager
Assistant General Manager
Manager
Deputy Manager
Assistant Manager
Senior Executive
Senior Officer
Senior Assistant
Workers
Grade (A to E)
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Human Resource Department
Introduction:
According to Scoot Clothier and Spriggel Human resource management as the branch of
management which is responsible on a staff basis for concentrating on those aspects of
relationship of management to employees and employees to employees and with the
development of the individual and the group. The objective is to attain maximum
individual between employer and employees and effective molding of human resources
as contrasted with physical resources.
Personal (Human resource) management plays a very important role for any organization.
The firm having all types of resources like machines, materials, money, information etc.
will not be success in business without effective manpower. Human capital is the greatest
assets of business enterprise and manpower management is the most important and
crucial job because the managing group is the heart of the company.
Human resource department plays most important role in establishing good relation and
harmony among all.
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Total Employees in Amul
No of Shift:
1st shift time: 08:30 A.M to 04:30 P.M
2nd shift time: 04:30 P.M to 12:30 A.M
3rd shift time: 12:30 A.M to 08:30 A.M
AUTHORITY NO. OF EMPLOYEES/WORKERS
Manager 48
Assistant 101
Officers 180
Workers 846
Total 1175
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Function of Human Resource Department
1. RECRUITMENT AND SELECTION
2. TRAINING AND DEVLOPMEN
3. PERFORMANCE APPRAISAL
4. SALARY AND WAGE ADMINISTION
5. EMPLOYEE TURNOVER
6. COMPENSATION
7. INDUSTRIAL RELATION
8. FACTORE ACT
9. INDUSTRIAL DISPUTE ACT
10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)
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Recruitment and Selection Function
Recruitment:
There are two types of Recruitment sources followed by Amul:
EXTERNAL SOURCE
INTERNAL SOURCES
Internal Sources :
Internal sources include personnel already on the payroll of the organization.
Present Permanent Employees.
Employee Referrals
Former Employee
External Sources :
These sources lie outside the organization In Amul they consider following
sources for recruitment:
Campus Interview
Unsolicited Application
Application Blank
Placement Agencies
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Selection:
Selection procedure is concerned with securing relevant information about the applicant.
The main objective of selection process is to determine whether an applicant meets the
qualification for a specific job and choose the application that is most likely to perform
well in the job. The Selection process in AMUL is as under
Vacancy in any department
Approval from M.D
Advertisement
Collection of application
Securitize the application
Interview
Medical checkups
Selection
After selection, the employees generally have probation period. In AMUL
probation period is different for different type of employees. Probation period for
officers is 12 months, 6 months for clerical employees and 3 month for workers.
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Training and Development
It is a subsystem of an organization. It ensures that randomness is reduced and learning or
behavioral change takes place in structured format. Training is the process where the
work related knowledge, skills and attitude are given to new employees. By which they
aware the policies rules and increase technical and manual efficiency and create of
responsibility.
AMUL has accepted these methods for the training
1. On the job method
2. Off the job method
3. In house training
4 Out house training
T raining Procedure in Amul
Identification of need of Training
↓
Module Preparation
↓
Selection of Employee for the Training
↓
Training
↓
Feedback
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Performance Appraisal
Performance appraisal is the process of evaluating the performance and qualification of
employees in terms of the requirement of the jobs for which they are employed. It is
highly useful in making decision regarding the promotion, transfer, wage and salary
administration etc. The AMUL adopts the following appraisal system
Final confirmation with the recommendation by the divisional heads comes from the MD
on annual basis. His work is evaluated by Check list Method of Performance Appraisal.
These are a various method used to appraise the performance of an employee. In Amul
the following methods are used
Self Appraisal
If individuals understand the objectives they are expected to achieve the standards by
which they are to be evaluated they are to a great extent in the best position to appraise
their own performance .in this method employee himself.
Promotion Period Appraisal For
1 year Managers
3 year Officers
1 year Workers
1.5 year Temporary workers
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Manager’s Appraisal
The general practice is superiors appraise the performance of their subordinate. Other
supervisors, who have close contact with employee‘s work may also appraise with a view
to provide additional information. A higher – level manager appraise the employees for
their performance.
In Amul various attributes consider for the appraisal of employee.
Job knowledge
Work output
Quality of work
Interest in work
Initiatives
Past records
Seniority
This appraisal is also the rating scale. Method appraiser also appraised employee by
following.
Outstanding
Good
Satisfactory
Poor
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The overall assessment is done through above rating and also the comment of reviewing
officer is included. Apart from this the performance in liked allowance is provided in
relation with performance that is,
25%
50%
100%
Not allowed
This is provided by and under knowledge of under Managing Director Generally in Amul
on base of performance appraisal employee of managerial level gets specials allowance.
While for workers they get promotions
Wages and Salary
A common method is followed for the wage and salary administration
according to “Muster roll “.
Timekeeper sends that muster roll to the account department for attendance of
each and every employee. This will analyze and entered in the computer.
After this salary is calculated for each employee through computer according
to that they prepare salary sleep of employees.
Wage Structure (Approx)
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Human Resource Information System of Amul
Human Resource Information System (HRIS) is a systematic way of storing data and
information for each individual employee to aid planning, decision making, and
submitting of return and reports to the external agencies.
It merges HRM as a discipline and in particular it’s basic HR activities and processes
with the information technology field.
It can be used to maintain details such as employee profiles, absence reports, salary
administration and various kinds of reports.
Post Grade Pay scale
Managing Director Manager 21000-28000
General Manager Manager 15000-21000
Assistant General Manager Manager 7000-15000
Assistant Clerical 2500-7500
Senior clerk Worker 2000-5000
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Objectives:
To understand, how human resource being managed by the organization.
To study the maintenance of the records of their employees.
To study if organization is using ICT for HR functions and to maintain
database.
To study the users perception about HRIS
Definition:
“A Human Resources Information System is a system that lets you keep track of all your
employees and information about them. It is usually done in a database or, more often, in
a series of inter-related databases “
Human Resources are an organizational function that deals with issues such as
recruitment and selection, training, appraisal, compensation and performance
management of the employee.
Information System:
A system, whether automated or manual, that comprises people, machines, and/or
methods organized to collect, process, transmit, and disseminate data that represent user
information.
Introduction:
An information system is an inter-related set of procedures and processes to provide
information for decisions. Information is data that have been processed so that they are
meaningful. It adds to the representation of an idea. It corrects and confirms previous
information. It tells us something which we did not know. Many organizations have
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computer-assisted information systems. Thus HRIS is a system that enables storing of
information of Human Resource in every aspect such as Personal, Academic,
Qualification, Family, Medical, Career and Performance Evaluation, Training &
Development & Wage and Salary of individuals. Unlike manual systems the HRIS
enables availability of all such information in a single screen. Reports on various
parameters can be generated with ease. Moreover reliability of such records is assured.
An information system especially developed for human resource management is
referred to as HRIS – a human resource information system.
Human resource management, when it doesn’t include the human resource planning
function, requires only a basic HRIS. If this basic HRIS is computer-supported, it is
likely to include transition processing system or management information system.
An information system provides for the accumulation by gathering, processing by
deleting extraneous information, deciding among divergent information and putting
the information in a logical arrangement that promotes its understanding.
Finally, the information is stored in a readily accessible configuration.
HR Information System Includes:
This system includes the employee name and contact information and all or some of the
following:
Department
Job Title
Grade
Salary
Salary History
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Position History
Employee details (Personal & Professional)
Employee Posting information on appointment /transfer
Employee promotion/ appointment information
Employee Service verification details
Employee Leave Information including(Leave available , leave availed,)
Employee confidential report information
Employee Training information
Needs of HR Information System
Human resource manager requires considerable amount of data for planning and
control of human resources and for this there is a strong need of a sound
information system.
Efficiently storing each employee information and data for reference- personal
data management, pay roll accounting, benefits management and planning.
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Enabling informed decision making in day-to-day personnel issues, planning,
budgeting, implementing and monitoring Human Resource function.
Facilitating decision making in areas like promotion, transfer, nomination, settling
employees provident funds, retirement, gratuity, LTC, and earned leave
compensation
Cutting costs.
Improving accuracy
Advantages of HR Information System
Reduction in the amount and cost of stored human resource data.
Availability of timely and accurate information about human assets.
Developing of performance standards for the human resource division.
More meaningful career planning and counselling.
Effectiveness of HRIS
The key to the effective planning of manpower and improvement of people productivity
is an effective HRIS. However, in order to be effective an information system must take
into account the following:
Adequacy of information: Too much or too little information, both lead to
defective decision-making. Therefore, there must be some understanding
regarding what information and in how much detail and covering what periods
should be maintained.
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Specificity: Even where it is not possible to quantify the information, the
information should be made as specific as possible.
Relevance: Information is to be managed in the light of the requirements of the
decision makers. Therefore, HRIS focus on the needs of the decision-makers and
stakeholders rather than on what is interesting or easily available or palatable to
the people. The system, therefore, must also have the built in capability for
deletion and updating of data.
Comprehensiveness: The information should be complete from the point of view
of the decision-maker giving details of who, what, how, when, where and why.
Reliability: Since the information is going to be the basis of critical decisions, it
must satisfy the requirements of validity and reliability. Moreover, to ensure
effectiveness, not only should the information provided be relevant and reliable
but the delivery system should also be the most satisfying and cost effective. A
wealth of information but not accessible when needed or available at an inhibiting
personal cost in terms of energy and time, is of hardly any use.
It Supported HRIS
In today’s enterprises, HRIS are typically Information Technology (IT) supported
systems. This is not to say that without IT HRIS cannot be introduced. But information
technology allows much greater effectiveness of HRIS than a manual system. Some of
the deficiencies of the Manual Systems which an IT based HRIS overcomes to a
considerable extent
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Convenience: In IT enabled systems, data entry, update and retrieval are all
significantly faster. Redundant data may be easily replaced.
Integration: A computerized system can greatly reduce fragmentation and
duplication of data. All data can be stored in a single system to enable retrieval of
complete picture of each employee or of each defined parameter in a desired
number of permutation and combinations. Moreover, depending on the
requirement, reports can be generated in different ways that provide an accurate
picture. Verification of data and error rectification are also relatively easy in
computerized systems.
Multi-User Benefit
Different people can access the data simultaneously, which facilitates quick
dissemination across geographical and structural boundaries and facilitates faster
decision-making. Moreover, on-line data entry is possible that leads to automatic up-
dating of data resulting into better informed decisions. However, to obtain these
advantages, it is important that the knowledge and expertise is available to the
organization, internally or from outside, to develop and tailor- make the system to suit the
organization’s unique needs.
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HRM in a Changing Environment
Environmental challenges refer to forces external to the firm that are largely beyond
management’s control but influence organizational performance. They include: rapid
change, the internet revolution, workforce diversity, globalization, legislation, evolving
work and family roles, and skill shortages and the rise of the service sector.
Six important environmental challenges today are:
a) Rapid change,
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b) Work force diversity,
c) Globalization,
d) Legislation,
e) Technology
f) Evolving work and family roles,
g) Skill shortages and the rise of the service sector
Rapid Change
Many organizations face a volatile environment in which change is nearly constant. If
they are to survive and prosper, they need to adapt to change quickly and effectively.
Human resources are almost always at the heart of an effective response system. Here are
a few examples of how HR policies can help or hinder a firm grappling with external
change.
Work Force Diversity
All these trends present both a significant challenge and a real opportunity for managers.
Firms that formulate and implement HR strategies that capitalize on employee diversity
are more likely to survive and prosper.
Globalization
One of the most dramatic challenges facing as they enter the twenty-first century is how
to compete against foreign firms, both domestically and abroad. Many companies are
already being compelled to think globally, something that doesn't come easily to firms
long accustomed to doing business in a large and expanding domestic market with
minimal foreign competition. Weak response to international competition may be
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resulting in upwards layoffs in every year. Human resources can play a critical role in a
business's ability to compete head-to-head with foreign producers. The implications of a
global economy on human resource management are many.
Legislation
Much of the growth in the HR function over the past three decades may be attributed to
its crucial role in keeping the company out of trouble with the law. Most firms are deeply
concerned with potential liability resulting from personnel decisions that may violate
laws enacted by the state legislatures, and/or local governments. These laws are
constantly interpreted in thousands of cases brought before government agencies, federal
courts, state courts, and t Supreme Court.
How successfully a firm manages its human resources depends to a large extent on its
ability to deal effectively with government regulations. Operating within the legal
framework requires keeping track of the external legal environment and developing
internal systems (for example, supervisory training and grievance procedures) to ensure
compliance and minimize complaints. Many firms are now developing formal policies on
sexual harassment and establishing internal administrative channels to deal with alleged
incidents before employees feel the need to file a lawsuit.
Technology
The world has never before seen such rapid technological changes as are presently
occurring in the computer and telecommunications industries. One estimate is that
technological change is occurring so rapidly that individuals may have to change their
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entire skills three or four times in their career. The advances being made, affect every
area of a business including human resource management.
Evolving Work and Family Roles
More and more companies are introducing "family-friendly" programs that give them a
competitive advantage in the labor market. These programs are HR tactics that companies
use to hire and retain the best-qualified employees, male or female, and they are very
likely to payoff. For instance, among the well known organizations / firms, half of all
recruits are women, but only 5% of partners are women. Major talent is being wasted as
many women drop out after lengthy training because they have decided that the
demanding 10- to 12-year partner track requires a total sacrifice of family life.
These firms have started to change their policies and are already seeing gains as a result.
Different companies have recently begun offering child-care and eldercare referral
services as well to facilitate women workers as well as are introducing alternative
scheduling to allow employees some flexibility in their work hours.
Skill Shortages and the Rise of the Service Sector
Expansion of service-sector employment is linked to a number of factors, including
changes in consumer tastes and preferences, legal and regulatory changes, advances in
science and technology that have eliminated many manufacturing jobs, and changes in
the way businesses are organized and managed.
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Service, technical, and managerial positions that require college degrees will make up
half of all manufacturing and service jobs by 2000. Unfortunately, most available
workers will be too unskilled to fill those jobs. Even now, many companies complain that
the supply of skilled labor is dwindling and that they must provide their employees with
basic training to make up for the shortcomings of the public education system. To rectify
these shortcomings, companies currently spend large amount year on a wide variety of
training programs.
A Case Study of Human Resource Information System at Amul
Human resource information system, that enables the organization in collecting, storing,
maintaining, retrieving and validating data needed about its human resource.
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HR data are wide in their variety, and include job history (transfers, promotions, etc.);
current and historical pay details, inventories of skills and competencies, education and
training records, performance assessment details, absence, lateness, accident, medical and
disciplinary records, warning and suspensions, holiday entitlements, pension’s data and
termination records. An HRIS normally provides an electronic database for the storage
and retrieval of this data which is, at least potentially, available to anyone who may want
to access it.
The important issue however, is- how this IT system is actually used in carrying out the
HR tasks. ERP is an information system to drive the business. It enables the organization
to take systematic decision in the area of planning, execution and control based on
relevant and current information.
AMUL uses the system named ERP ORACLE – Enterprise resource planning. The areas
of application of HRIS as follow.
1. Training management
2. Turnover analysis
3. Succession planning
4. Attendance reporting
5. Accident reporting.
AMUL uses the system centrally in the organisation and over all the plants of the Amul
which is located in various areas such as
Mogar - chocolate plant
Khatraj plant – cheese plant
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Kanjari plant – cattle feed plant.
The system operates in AMUL for different manner, and with the help of this system
different records are maintained with the help of ERP ORACLE. Types of record
maintained through HRIS.
Personnel administration - It will encompass information about each employee,
such as name address, personal details etc.
Salary administration - Salary review procedure are important function of HRM, a
good HRIS system must be able to perform what if analysis and present the
reports of changes.
Leave and absence recording — essentially be able to provide comprehensive
method of controlling leave/absences
Skill inventory - It is also used to store record of acquired skills and monitor the
skill database both employee and organizational level.
Performance appraisal — the system should record individual employee
performance, appraisal data, such as due date of appraisal, scores etc.
Human resource planning — HRIS should record details of the organizational
requirements in terms of positions
Recruitment — Record details of recruitment activities such as cost and method
of recruitment and time to fill the position etc.
Career planning - System must be able to provide with succession plans reports to
identify which employee have been earmarked for which position.
Collective bargaining — a computer terminal can be positioned in the conference
room linked to database. This will expedite negotiations by readily providing up
to date data based on facts and figures and not feelings and fictions.
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Database – In database the system records the information of the previous
applicant , who is been not selected for the job this information is useful to the
organization for next recruitment procedure for inviting for job in this way the
cost is saved by the organization because there is no need of giving advertisement
for next recruitment.
Service records – In service records all the details regarding promotion of an
employee , education detail of employees , personal details, in which it records
the employee No , employee working in which location etc .
Employee summary – In employee summary the information regarding employee
is available according to grade wise, designation wise, skilled wise, and the total
information of manpower is available.
Training – The training information of an each employee is being available
through this system because it records that when the employees is being given
training and when will be the next training is to be given to the employees .
Time keeping: time keeping in Amul is decentralized, plant wise but with the help
of ERP system the record of absence and present record is can be available at
Amul’s head office Anand.
Recruitment: this system is not used in any steps of recruitment process of the
Amul.
In AMUL, the HRIS is not used for the recruitment process as it is done manually in the
organization the recruitment of the is carried in the following way
Vacancy in department
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Receiving of application
Short listing of applicant
There is no role of HRIS (ERP oracle) in the recruitment process, after the short listing of
the application; the applications which are selected are called for a personal interview
with the general manager of the AMUL. After the candidate is selected for the particular
job, the role of HRIS starts by keeping different types of records of an employee such as
a) Personal details
b) Previous organization details
c) Training details
d) Service records
e) Joining details
f) Retirement details
HRIS is also useful in the turnover analysis of the Amul; it helps the organization to
know the number of time employees left the organization.
HRIS, is useful in keeping the Accident details of the employees, on the basis of this
reports employees are injured due accident are been given medical facility and
financial help.
The time keeping process of Amul is decentralized, in the various plants of Amul
like Mogar plant, Khatraj plant, Anand plant and Kanjari plant.
If any information regarding any employee absence and present of other plant is needed
by the central head office at Anand, that it is available with the help of ERP ORACLE,
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User’s Perception
After interviewing the fifteen respondents from the organization I have come to know
that the organization is using the software named “ERP ORACLE “in HRIS and by
observing and interviewing the user of the system the following data is gathered.
The users of the system is fully satisfied with the present system ERP ORACLE
The AMUL is using this system since last thirteen years and they are trying to
bring change by implementing new system named SAP which is under the
progress.
With help of HRIS the organization gets the following benefits such as
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1. Time saving
2. Cost saving
3. Effective work
HRIS helps to supports the following HR task of the Amul
1. HR development and workplace training
2. Communication
3. Career management (for employees)
4. Decision making
The HRIS system of Amul is fully secured, so there no threat of linking of any
kind of data.
Futuristic Vision
On the basis of the various issues and challenges the following suggestions will be of
much help to the philosophy of HRM with regard to its futuristic vision:
There should be a properly defined recruitment policy in the organization that should
give its focus on professional aspect and merit based selection.
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In every decision-making process there should be given proper weightage to the
aspect that employees are involved wherever possible. It will ultimately lead to sense
of team spirit, team-work and inter-team collaboration.
Opportunity and comprehensive framework should be provided for full expression of
employees' talents and manifest potentialities.
Networking skills of the organizations should be developed internally and externally
as well as horizontally and vertically.
For performance appraisal of the employee’s emphasis should be given to 360 degree
feedback which is based on the review by superiors, peers, subordinates as well as
self-review.
360 degree feedback will further lead to increased focus on customer services,
creating of highly involved workforce, decreased hierarchies, avoiding discrimination
and biases and identifying performance threshold.
More emphasis should be given to Total Quality Management. TQM will cover all
employees at all levels; it will conform to customer's needs and expectations; it will
ensure effective utilization of resources and will lead towards continuous
improvement in all spheres and activities of the organization.
There should be focus on job rotation so that vision and knowledge of the employees
are broadened as well as potentialities of the employees are increased for future job
prospects.
For proper utilization of manpower in the organization the concept of six sigma of
improving productivity should be intermingled in the HRM strategy.
The capacities of the employees should be accessed through potential appraisal for
performing new roles and responsibilities. It should not be confined to organizational
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aspects only but the environmental changes of political, economic and social
considerations should also be taken into account.
The career of the employees should be planned in such a way that individualizing
process and socializing process come together for fusion process and career planning
should constitute the part of human resource planning.
Major Influencing Factors in 21st Century
In the 21st century HRM will be influenced by following factors, which will work as
various issues affecting its strategy:
Size of the workforce.
Rising employees' expectations
Drastic changes in the technology as well as Life-style changes.
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Composition of workforce. New skills required.
Environmental challenges.
Lean and mean organizations.
Impact of new economic policy. Political ideology of the Government.
Downsizing and rightsizing of the organizations.
Culture prevailing in the organization etc.
Conclusion
To conclude Human Resource Management should be linked with strategic goals and
objectives in order to improve business performance and develop organizational cultures
that foster innovation and flexibility. All the above futuristic visions coupled with
strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we
should feel by Heart, think by Head and implement by Hand.
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The times when management could arbitrarily dictate terms to the employees and tread
upon their rights is something that is not relevant anymore. With the ballooning of the
white collar workforce, it becomes necessary for organizations to pay more attention to
the needs of the employees more than ever.
In recent years, with the high levels of attrition in the service sector, it has become
imperative for firms to have a structured separation plan for orderly exits of employees.
Of course, the concept of “pink slips” or involuntary exits are another matter altogether
and involve some bitterness that results because of the employee losing his or her job. In
conclusion, it is our view that employee separations must be handled in a professional
and mature manner and though attrition is a fact that concerns everyone in the industry,
once an employee decides to leave, the separation must be as smooth as possible.
BIBILOGRAPHY
The source for gathering information for my project.
www.amul.co.in
www.hrm.com
human resource management – ashwathappa
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