Final Report

A FINAL REPORT ON ROLE OF HUMAN RESOURCE MANAGEMENT IN IMPLEMENTING TOTAL QUALITY MANAGEMENT

BY TATHAGATA BANERJEE (08BS0003566)

ICFAI BUSINESS SCHOOL

Table of Contents

Acknowledgement Abstract1. Introduction 5 1.1 Objective 5 1.2 Research Methodology 5 1.3 Limitations 6 2. Discussion on Hr processes of SEFPL 63. Recruitment Process 6 3.1 Recruitment process matrix 7 3.2 A brief analysis on the recruitment process of SEFPL 11 4. ON Boarding Process 11 4.1 On Boarding Process Matrix 12 4.2 Timeframe an Employee Makes a Decision to Stay at a Company 13 4.3 Timeframe that Best in Class companies extend On boarding 14 4.4 Recommendations for Action 145. Training and development Process 14 5.1 Process matrix on Training and Development 15 5.2 General suggestions on Training and Development 166. Exit process 17 6.1 Exit Process Matrix 17 7. Confirmation of employee process 18 7.1 Confirmation of employee process matrix 19 7.2 General suggestions on confirmation of employee 20 8. Annexure1- exit interview questionnaire 21 9. References 24

Acknowledgement

The present project is carried out in Srei equipment finance private limited located at kolkata under the guidance of Icfai Business School kolkata. I would like to thank a number of people from whom I have received generous support and who in different ways have contributed me in completing the project.

First I would like to thank my company guide Mr. Ayan Banerji in the SREI equipment finance private limited and all the staffs who have helped me . Their support and comments have been of inestimable value throughout what ever have been achieved in this project.

I would also like to thank all the staff at Icfai business school kolkata and especially my faculty guide Mrs. Rachana Chattopadhyay for helping & guiding me and at the same time solving all my queries.

Furthermore I would also like to thank my Dean sir Mr. R.K Mandan and all the faculty members present in IBS lucknow for supporting and helping me in this MBA program .

Tathagata banerjee ( student’s name)

Abstract:

Total quality management has become a frequently used term in discussions concerning quality. The main idea behind this project was to establish a relationship between human resource and IT and this project also aims to cover the role and the aspects of the human resource department tasks in regards to an implementation of total quality management. Here in this project top five priorities have been identified in the form of HR processes.All this processes have been carefully studied. Further all this processes could be break up into several tasks. Suggestions were given so as to improve the tasks involved in a particular process. All the five HR processes have been redefined in terms of Total Quality management parameters. In fact a process matrix has been drawn which includes the TQM parameters, existing process and suggestions. Data have been collected from internal sources like the HR department of SEFPL and few external reports. The main problem with the project is that only five processes could be covered and moreover all the TQM parameters could not be used in all the five Processes. To implement TQM in the organization it needs support from the top management and all staffs. However HR department can create awareness about TQM by arranging workshops, seminars and conducting training classes.

1.Introduction

Total Quality Management, TQM, is a method by which management and employees can become involved in the continuous improvement of the process and functions. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.

Some of the companies who have implemented TQM include Ford Motor Company, Phillips Semiconductor, SGL Carbon, Motorola and Toyota Motor Company.

Total Quality Management is an important management philosophy, which have been developed over the years regarding quality. Traditionally objectives of the business organizations were restricted to productivity and profits. Training and development programs were limited to job related activities rather than extending to employee capacities. But now the business objectives and total quality HRM approach are to maximize customer satisfaction, and market share through improved quality. The processes and the functions involved in the organization should be redefined in order to improve the efficiency and as a whole the quality of the organization.

1.1Objective of the Project: The overall aim of this project is to study the role and the aspects of the human resource department tasks in regards to an implementation of total quality management.

1.2Methodology : The research methodologies of the project will include an empirical study of the human resource management role in an implementation of total quality management. The research can be divided into two phases: The first phase, the critical investigation of the HR processes and a second phase to analyze and give suggestions on the different Hr processes of Srei Equipment Finance Limited. The first phase of the project serves as an investigation of the HR processes as preparatory for the study in the second phase. The

second phase serves as a detail discussion of the different human resource processes in terms of TQM parameters.The data will be collected both from primary and secondary sources. The primarily sources are interviews, internal documents and annual reports from the SREI Equipment finance Company. The secondary sources are from books, files, journals, former investigations and magazines.

1.3LimitationsThe project have certain limitations and these limitations have been discussed below:• Only five HR processes could be covered • All the TQM parameters could not be used in all the five processes.• This project is based upon a single organization i.e SEFPL, so it cannot be generalized.

2.Discussion on HR processes of SREI Equipment Finance Private LimitedIn this segment five hr process has been discussed and suggestions were given so as to improve all those processes. Moreover each process in involves several tasks so suggestions given in few processes so that a single task can be improved resulting in improvement of the whole process.

3.Recruitment Process:In today’s rapidly changing business environment, a well defined recruitment policy is necessary for organizations to respond to its human resource requirements in time. Therefore, it is important to have a clear and concise recruitment policy in place, which can be executed effectively to recruit the best talent pool for the selection of the right candidate at the right place quickly. Creating a suitable recruitment policy is the first step in the efficient hiring process. A clear and concise recruitment policy helps ensure a sound recruitment process.A recruitment policy of an organization should be such that:

It should focus on recruiting the best potential people.

To ensure that every applicant and employee is treated equally with dignity and respect.

Unbiased policy. To aid and encourage employees in realizing their full potential. Transparent, task oriented and merit based selection. Weightage during selection given to factors that suit organization

needs. Optimization of manpower at the time of selection process. Defining the competent authority to approve each selection. Abides by relevant public policy and legislation on hiring and

employment relationship. Integrates employee needs with the organizational needs.

The following sections have been included in the recruitment policy of SEFPL

1) Objective 2) Manpower Requirement planning and Budgeting (Manpower Requisition form filled by the Department Head) 3) Salary Structure for each Profile 4) Different Profiles (Job Description)/Skills/No. of people required5) Source of Hiring (Advertisement, Consultants, Employee Referral, Job Portals) 6) Screening 7) Interview 8) Selection 9) Issuing Offer Letter 10) Completing the Documentation(personal File)

People recruited here gives a reflection of the success of the brand “ARCHIVITA”.

3.1Recruitment Process Matrix

TQM Parameters Existing Process Suggestions1.Process owner Human Resource Department

of SEFPLRecruitment team.Reason : Division of work

2.Process Input(start) Manpower requirement Planning & Budgeting

Here manpower requirement planning and budgeting is an annual activity. Therefore the process should start from finding vacancy and preparing job profile.

3.Process Output Giving appointments A recruitment is successful if the employee is able to sustain the training period.

4. Escalation Functional Head

Fills the position requirement form

Forwards it to HR Head Lead recruit & support

Takes approval from managing director

For level (CS1-Cs2)Special recruitment committee

Head HR

Lead recruit & support

5. Process Monitoring Initial stage Functional Head and HR Head.( upto decision on job profile and approval)Later stage Head HR and lead Recruitment(upto appointment)

For level (CS1-CS2) By special recruitment committee.

6. Milestones 1. Preparing the job profile2. Approval of vacancy3. Screening, profile matching4.Interview and Test5.Appointments(actual date of joining)

7. operation time = setup time + turnaround time(TAT)

For lower level Set up time = 15TAT = 17Therefore OT = 15+17 = 32For middle Level Set up time =15 TAT = 25 Therefore OT = 15+25 = 40For upper level Set up time = 15 TAT = 37 Therefore OT = 15+37 = 52

TAT for upper level is maximum it can be reduced if proper succession planning can be done.

8.Utilization(U)=(Operation time/time available)*100

U(lower level)=(32/90)*100 =35%U(middle level)= (40/90)*100 =44%U (upper level) =(52/90)*100 =57%

Utilization for all the three levels is quite good as most of the cases have been finished before time. Therefore some more time could be spent on searching good profiles.

9.Cycle time= (TAT/milestones)

CT (lower level) = (17/5) = 3.4CT(middle level) = (25/5) = 5 CT(upper level) = (37/5) = 7.4

The standards should be maintain .If the task is completed within time then it is good or otherwise it needs to be improved.

10.Throughput rate = (1/cycle time)

TR(lower level) = (1/3.4) = 0.2941TR (middle level) = (1/5) = 0.2TR (upper level) = (1/7.4) = 0.135

Efficiency = (proposal accepted/ total number of proposal) *100

E = (14/19)*100 = 73.2%

Efficiency can be improved by decreasing the number of rejections. Major reasons rejections are as follows:-

1. job profile2. compensationIf the above two factors can be worked upon then efficiency can be improved.

Above calculations are made based on the data sheet given by the company.

3.2A Brief analysis on the recruitment policy of SEFPLIn the above matrix turnaround time of the process and cycle time of every task have been calculated. Company standards have been calculated based on the data sheet provided by the HR Department of SEFPL , therefore any task related to the process should be completed within Turnaround time is acceptable or otherwise it requires improvement. Moreover Turnaround time for upper level is the maximum so they should go for Succession Planning. The company does manpower requirement planning and budgeting every year to meet the manpower requirement. However recruitment is done quarterly. If recruitment is not completed in a particular quarter it is carried forward to the next quarter. The recruitment process should start from finding vacancy and preparing job profile and should end after successful completion of training because if a candidate is not able to complete then it is a miss for the HR Department. The HR department should also see that the person whom they are recruiting should at least stay in the company for few years otherwise company incurs loss in terms of money and time.

4.On boarding process:First impressions last. Future-looking companies recognize that the first impression a new hire makes of their work environment is critical to improving retention rates and improving the company brand. A new employee that feels engaged in the company on their first day of work will have a greater incentive to stay at that company. Although 90% of companies believe that their employees make their decision to stay atthe company within the first six months, but many of these companies do not recognize or acknowledge how on boarding impacts retention rates. In today’s environment, support for new hires is not only executed in the recruitment efforts but more importantly, in a well defined, formalized on-boarding process. SREI though have a good on boarding policy but still it needs a touch of the TQM philosophy. The task involved in on boarding should be improved in terms of quality and time.

4.1On Boarding Process Matrix

TQM Parameters Existing Process Suggestions1.Process owner Hr operations of SEFPL2. Process input(start) Joining day of the

employee3. Process output Introduction to

company and co -workers

4.Escalation Lead recruitment

Forwards the documents to lead HR operations and support.

5. Process monitoring The whole process should be monitored by Head HR and lead HR operations.

6. Milestones 1. Joining documentation2. Assigning a mentor3. Introductory mail4. Facility tour5. Induction

7. Operation time= turn around time(TAT)+ set up time

Set up time =3TAT=76Therefore OT=79

The turn around time for induction is quite high. The company should organize induction as quickly as possible and should extend this process for at 3 months because this is the phase when it creates impression on the employees.

8.Cycle time = (TAT /milestones)

CT = 76/5 =15.2

However the top four milestones is completed

on the joining day but induction is organized on average 76th day. Therefore TAT for induction needs to be improved.

4.2Timeframe an Employee Makes a Decision to Stay at a Company

Source: Aberdeen group 2006

How effective a company is at its on boarding process determines how successful that company is at retaining its employees, yet, many companies do not recognize this connection. Although the majority of companies believe their employees make their decision to stay at the company within the first six months, only 15% of companies extend their on boarding solution for the first six months. Twenty-three percent extend on boarding inthe first day, 28% in the first week, and 22% in the first month.

4.3Timeframe that Best in Class companies extend On boarding

Source: Aberdeen group 2006

4.4Recommendations for Action• Define the on boarding process and create an on boarding roadmap• Integrate on boarding with the overall hiring management process• Extend on boarding to the first six months, the amount of time that an employee makes his or her decision to stay at a company• Replace paper and spreadsheet based processes and use an automated system that includes forms management, tasks management, and socialization in the company culture• Create an on boarding roadmap in order to establish a long-term strategic plan for the on boarding process.• The induction program should start from the very first day of joining.

5.Training and Development ProcessThe Indian Organizations have realized the importance of corporate training. Training is now considered as more of retention tool than a cost. The principal objective of training and development division in SEFPL is to make sure the availability of a skilled and willing workforce to an organization.In SEFPL once the training calendar is set it is communicated through intranet to all the staffs before 10 days .Email and posters are also used to

inform the staffs. If a employee after getting himself enrolled in the training program does not want to continue then he has to inform to the HR department before one week. Training evaluation process involves participant feedback which is filled by the trainer sent back to the supervisor. It is a 60 days action plan reviewed by the supervisor.

5.1Process Matrix of training and development

TQM Parameters Existing Process SuggestionsProcess Owner Human resource department

of SEFPLTraining and development team.Reason : Division of work

Process Input Setting up the training calendar

Process Output Confirmation and posting Escalation Head HR (sets the training

calendar)

HR support (makes the list) Forwarded to lead training department.

Trainer evaluates

Reviewed by Supervisor

Process monitoring Initial stage: HR head and support( up to making the list of trainees)Next stage:Trainer and supervisor(conducting the evaluation and giving feedback)

Milestones 1. Setting the training date and putting it up in the intranet.

2. Nomination3. Evaluation

(60 days action plan reviewed by supervisor)

Turnaround time Three evaluation is taken after 60 days. Therefore TAT= 180 days or six months.After six months if the trainee is not able to qualify he gets time of another six months ie. Two period of three months each.

Operation time = Setup time +TAT

Generally set up is up to 10 Days in order to set up the training date and making the list.TAT= 180 daysTherefore operation time= 190 days

5.2General Suggestions on improving training and development process

Prepare training budget for department or organization.

Evaluate instructor performance and the effectiveness of training programs, providing recommendations for improvement.

Analyze training needs to develop new training programs or modify and improve existing programs.

Conduct or arrange for ongoing technical training and personal development classes for staff members.

Plan, develop, and provide training and staff development programs, using knowledge of the effectiveness of methods such as classroom training, demonstrations, on-the-job training, meetings, conferences, and workshops.

Conduct orientation sessions and arrange on-the-job training for new hires. Confer with management and conduct surveys to identify training needs based on

projected production processes, changes, and other factors. Train instructors and supervisors in techniques and skills for training and dealing

with employees. Develop and organize training manuals, multimedia visual aids, and other

educational materials. Develop testing and evaluation procedures.

6.Exit ProcessThe exit policy of SEFPL covered the below mentioned detail.

1) Soft copy resignation to the reporting manager.2) Acknowledgement for resignation acceptation from the HR Department.3) Clearance certificate / from department like IT/Accounts/Quality others.4) Exit interview of the employee and detail comment to HR SPOC.5) Resignation letter.6) Full & final statement in hard copy.7) Experience certificate copy, issued to the employee.

6.1Process Matrix of Exit Policy

TQM Parameters Existing Process SuggestionsProcess Owner Human resource department

of SEFPLProcess Input 1. Resignation

2. Termination3. Retirement

Process Output Service letterEscalation Functional head

HR department

Accounts DepartmentProcess monitoring The whole process should

be monitored by Head HR and support

Milestones 1. Mail to reporting manager

2. Formal acknowledgement from HR department.

3. Exit interview4. Clearance

Certificate5. Full and final

settlement6. Issue of service

letter

Turnaround time . Acknowledgement =7 dayFull and final settlement=25 days.Clearance certificate= 30 days. Issue of service letter= 3days.Clearance certificate should be downloaded 7 days before the final day. Exit interview conducted one or two days before the final day. Ideally should be of 90days.

The purpose of this policy and process is to identify workplace, organizational or human resources factors which have contributed to an employee’s decision to leave employment from a company or from a given department or function, with a view of identifying any trends requiring attention or any opportunities for improving the company’s ability to respond to employee issues, and to retain key people.Therefore SREI should have a proper exit interview questionnaire in place. This would help them to know the reason and help them to work on the reason. The success of the process lies on the exit interview questionnaire.A sample questionnaire has been prepared. Please see annexure 1.

7.Confirmation of Employee Process

In SEFPL the job holders are evaluated at the end against performance parameters at the end of 6 months by immediate supervisor not below level of chief manager. If the employee is able not able to establish his fitment then he may released with or without a notice.For administrative ease all confirmation is done 1st to 15th of the month.

7.1Process matrix of Confirmation of employee

TQM Parameters Existing Process SuggestionsProcess Owner Human resource department

of SEFPLProcess Input Completion of probation

periodProcess Output Confirmation LetterEscalation Hr head & support

Lead training and development

Reporting Manager

Process monitoring The whole process should be monitored by Head Hr and Reporting Manager

Milestones 1. Evaluation2. HRD initiate

confirmation appraisal Template

and send it to reporting manager.3. Reporting Manager have feedback session.4. Confirmation or Separation

Operation Time=Set up time +Turnaround time

Job holders evaluated against performance parameter at the end of 6 months by immediate supervisor.Therefore set up time = 6 months or 180 daysFor administrative ease all confirmation due between 1st to 15th of the month. Therefore TAT=15 daysOT= 180+15 = 195

7.2General Suggestions on the process1. Confirmation should be done on the sixth month after completion of

probation period.2. If confirmation extended then the employee must be informed in

written.3. Performance feedback should be given form time to time to the

employee so that the employee can improve his performance before confirmation.

4. The company can opt for online confirmation wherein the employee can straight log in and get the confirmation letter – so as to reduce paper work.

8.Annexure 1.Exit Interview Questionnaire

Name Job Title

Service Area Leaving Date

Line Manager

Reasons for Leaving – please tick one box indicating your main reason for leaving the council.

1. The job itself1.1 Temporary Contract1.2 Lack of job security1.3 Hours of work – inflexible or unsociable1.4 Job dissatisfaction1.5 Pay and/or benefits1.6 Other – please specify below

2. Job content2.1 Lack of career progression2.2 Not enough training available2.3 Overload of work2.4 Not enough work2.5 Other – please specify below

3. Workplace/working conditions3.1 Dissatisfaction with working environment3.2 Unsuitable/insufficient equipment to carry out job3.3 Problems with work colleagues3.4 Problems with manager3.5 Discrimination3.6 Harassment and/or bullying3.7 Other – please specify below

4. Personal4.1 Health issues4.2 Relocation4.3 Caring responsibilities4.4 Not returning after Maternity leave4.5 Just wanted a change4.6 Working closer to home4.7 Retirement4.8 Other personal reasons

This section asks for more information about how you feel about your day to day experiences whilst at work. By completing this section you will be providing information to assist in our training and development.

5. Training & Development – How would you rate the following:-Very Good Good Average Poor

Training to carry out your day to day tasksInductionOpportunities for further trainingDo you feel the training available to you was adequate for you to carry out your role?

Do you feel that there was adequate training available to you for you to develop yourself and or your role?

6. From your perspective, how well did you feel able to: -Always Able

toOften

Able toSeldom able to

Never able to

Seek advice?

Share problems or suggestions?Gain constructive feedback on your performance/update on your progress?Take part in regular appraisals and briefing sessions?

7. Communication – How would you rate the communication in:-Very Good Good Average Poor

Your team?Service Area?The Council as a whole?

8. If you are going to a new job are any of these things better or worse than they are here at SREI?

Better @ New

Better @SREI

8.1 Basic Pay8.2 Availability of bonus payments/overtime8.3 Career progression 8.4 Profit share8.5 Flexible working8.6 Training & Development8.7 Car benefits8.8 Free car parking8.9 Private Medical insurance8.10 Mortgage Assistance8.11Creche facilities/Childcare Vouchers8.12 Restaurant facilities8.13 Other benefits – please specify below

9. Feedback

Please add any constructive feedback:

9.References

WWW.TQMPAPERS.COM Citehr.comAberdeen Group Report 2006