HRM Assignment Final_tata Motors

8/11/2019 HRM Assignment Final_tata Motors

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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


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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.


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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.


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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:

Itis 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


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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.


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Societal Objectivesensure 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 thecost 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


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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


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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.


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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.


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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


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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


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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


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progress and success Achievable attainable and action-oriented Realistic relevant and

aligned Time-relatedgrounded 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, namelyABCD. This categorization is done both on the basis of performance

and the goals they were given. This whole system is commonly known as 90 degree appraisal

system also called 2 tiers.

HRM Assignment Final_tata Motors

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