PROJECT REPORT ON

HR PRACTICES FOLLOWED BY ITC

(Imperial Tobacco India Ltd.)

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

(2008-11)

SUBMITTED TO : SUBMITTED BYMR.SANJAY NAUTIYAL SONAL SRIVASTAVAFACULTY – G.E.U G.E.U, DEHRADUN

GRAPHIC ERA UNIVERSITY, DEHRADUN

DECLARATION

This project report on “a study of HR practices in ITC” in ITC

Saharanpur is submitted by me for the partial fulfillment of the

course of B.B.A from Graphic Era University.

This is an original work done by me expected the guidance received which has been properly acknowledgement in the report.

This is not the copy of any other report or any part of it hasn’t been

submitted for the award of any degree or diploma.

Sonal Srivastava Graphic Era University

ACKNOWLEDGEMENT

A successful completion of job is based upon the chain of factors combining together to make an integral outcome. The cooperation of the factors mixed with sincere effort can lead to best performance. My project is also no exception to this. Therefore I take this opportunity to express deep sense of gratitude to all those who have contributed significantly by sharing their knowledge and experience in the completion of this project work.

I would like to thanks Mr. Rahul Karan Singh(Circle Head) who gave me a free hand as far as going about the project work concerned and Mr. Harish Bhatt(Area executive ) for his timely response via e-mail & personal meeting, which immensely helped in giving the project the initial direction it needed. I also express my sincere thank to my internal guide Mr. Sanjay Nautiyal for his constant support and guidance throughout the project.

I have made an honest and dedicated attempt to make the research material as authentic as it could. And I earnestly hope that it provides useful and workable information and knowledge to any person reading it.

Submitted by

Sonal Srivastava

CERTIFICATE

This is to certify that the dissertation title “EVALUATION OF

HR PRACTICES AT ITC” submitted by SONAL

SRIVASTAVA during semester IIIrd of BBA(HR) program

(Batch 2008-11) embodies original work done by her.

Signature of faculty guide:

Name:

Destination:

Center:

PREFACE

I have made this report as an essential part of V semester course

curriculum of BBA. The title of project is “A study of HR

practices in ITC” at ITC Saharanpur.

In the course of my training I have had the golden opportunity

of seeing the practical application of what ever theoretical

knowledge was imparted to me in a class room studies. I have

had the good fortune in interacting with the executive and

employee of ITC Saharanpur who were very warm and cordial

in their conduct towards me.

My report mainly focuses on “study of HR practices in ITC”.

I hope that the finding of the project work must conform with

the companiy’s expectation & suggestion made on that basis must

be useful for the total performance of the employees of “ITC

SAHARANPUR.”

Table Of Contents

SUMMARY

1. Executive summary

2. Company Profile

3. History of ITC

4. Certification of ITC

5. ITC business portfolio

6. The HR Practices

7. Research Methodology

8. Data Analysis and Interpretation

9. Findings

10. Conclusions

11. Recommendation

12. Appendices

13. Refrences

EXECUTIVE SUMMARY

ITC constantly endeavors to benchmark its products, services and processes to global standards. The Company's pursuit of excellence has earned it national and international honors. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of "the world's best big companies". Forbes has also named ITC among Asia's'Fab 50' and the World's Most Reputable Companies

ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of its contribution to development priorities like poverty reduction, its scale and replicability, sustainability and transparency.

The project helped me to go through the various HR practices prevalent at ITC like it helped me

To know the recruitment & selection procedures adopted in this company.

To improve training and development programs used in the company.

To know how the performance of the employees is being appraised.

To provide better employee welfare.

To increase labour productivity.

Company profile

ITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander Deveshwar. The company has its registered office in Kolkata. It employs over 20,000 people at more than 60 locations across India.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's foremost private sector companies with a market capitalization of over US $ 22 billion and a turnover of US $ 6 billion.

ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable

(Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

ITC is one of India's most valuable and respected corporations.

Vision statement

Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders

The mission statement

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

Positioning statement

"Enduring Value. For the nation. For the Shareholder."

ITC’s corporate strategies are:

• Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets.• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. • Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. • Ensure that each of its businesses is world class and internationally competitive. • Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities’ residing in ITC’s various businesses. • Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses.• Continuously strengthen and refine Corporate Governance processes and systems to catalyze the

entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. The Company's ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 70 owned and managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002.

In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Sagaar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear(2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of

the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.

In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the

cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

Certification of ITC

ITC constantly endeavors to benchmark its products, services and processes to global standards. The Company's pursuit of excellence has earned it national and international honors. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of "the world's best big companies". Forbes has also named ITC among Asia's'Fab 50' and the World's Most Reputable CompaniesITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of

its contribution to development priorities like poverty reduction, its scale and replicability, sustainability and transparency.

ITC has won the inaugural 'World Business Award', the worldwide business award recognizing companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The award has been instituted jointly by the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF).

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation.

 ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007, the Award for ‘CSR in Emerging Economies 2005’ and ‘Excellence in Corporate Governance' in the same year. These Awards have been instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and Centre for Corporate Governance

ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality certification and the first among cigarette factories in the world to be awarded the ISO 14001 certification

 ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001 Environment Management Systems certification.

 ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001

 ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in the world.

 ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10 units in the world to bag the Social Accountability (SA 8000) certification

ITC Chairman Y C Deveshwar has received several honors over the years. Notable among them are:

Year Award

2007 SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership Symposium, Zurich.

2006 Business Person of the Year from UK Trade & Investment, the UK Government organisation that supports overseas businesses in that country.

2006 Inducted into the `Hall of Pride' by the 93rd Indian Science Congress

2005Honoured with the Teacher's Lifetime Achievement Award

2001Manager Entrepreneur of the Year from Ernst & Young Retail Visionary of the Year from Images, India's only fashion and retail trade magazine

1998Honorary Fellowship from the All India Management Association

1996 Distinguished Alumni Award from IIT, Delhi

1994Marketing Man of the Year from A&M, the leading marketing magazine

1986 Meridien Hotelier of the Year

ITC has won the 'Enterprise Business Transformation Award' for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for its celebrated e-Choupal initiative.

 ITC is the only Indian FMCG Company to have featured in the Forbes 2000 list. The Forbes 2000 is a comprehensive ranking of the world's biggest companies, measured by a composite of sales, profits, assets and market value. The list spans 51 countries and 27 industries.

ITC continues its dominance of The Economic Times' Brand Equity listing of India's 100 Biggest FMCG Brands, with three brands from

its stable making it to the top five. Gold Flake remains India's biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITC's Scissors brand ranks at No 5 and is the only new entrant into the top 10.

Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian restaurant in the world and the best restaurant in Asia. Bukhara has also been adjudged one of the top 50 restaurants in the world by the London based magazine 'The Good Food Guide'. Bukhara is the only South Asian restaurant to figure in the list.

ITC's Lifestyle Retailing Business Division (LRBD) has won the "Best Supply Chain Practices Award" for time-effective and cost-efficient Logistics Management in Organized Retail. The awards were organized by Retailers Association of India (rai) in association with ITW Signode - the International leaders in packaging solutions.

ITC's EHS Policy

ITC’s mission is to sustain and enhance the wealth-generating capacity of its portfolio of businesses in a progressively globalising environment. As one of India’s premier corporations employing a vast quantum of societal resources, ITC seeks to fulfil a larger role by enlarging its contribution to the society of which it is a part. The trusteeship role related to social and environmental resources, aligned to the pursuit of economic objectives, is the cornerstone of ITC’s Environment, Health and Safety philosophy. ITC’s EHS philosophy cognises for the twin needs of conservation and creation of productive resources.

In the multi-business context of ITC, Corporate Strategies are designed to create enduring value for the nation and the shareholder, through leadership in each business and the attainment of world-class competitive capabilities across the value chain. The objective of leadership extends to all facets of business operations including Environment, Health and Safety.

ITC is, therefore, committed to conducting its operations with due regard for the environment, and providing a safe and healthy workplace for each employee. Various international and national awards and accreditations stand testimony to ITC’s commitment to EHS. Such external recognition further reinforces the need to direct the collective endeavour of the Company’s employees at all levels towards sustaining and continuously improving standards of Environment, Health and Safety in a bid to attain and exceed benchmarked standards, whether regulatory or otherwise.

In particular, it is ITC’s EHS policy -

To contribute to sustainable development through the establishment and implementation of environment standards that are scientifically tested and meet the requirement of relevant laws, regulations and codes of practice.

To take account of environment, occupational health and safety in planning and decision-making.

To provide appropriate training and disseminate information to enable all employees to accept individual responsibility for Environment, Health and Safety, implement best practices, and work in partnership to create a culture of continuous improvement.

To instil a sense of duty in every employee towards personal safety, as well as that of others who may be affected by the employee’s actions.

To provide and maintain facilities, equipment, operations and working conditions which are safe for employees, visitors and contractors at the Company’s premises.

To ensure safe handling, storage, use and disposal of all substances and materials that are classified as hazardous to health and environment.

To reduce waste, conserve energy, and promote recycling of materials wherever possible.

To institute and implement a system of regular EHS audit in order to assure compliance with laid down policy, benchmarked standards, and requirements of laws, regulations and applicable codes of practice.

To proactively share information with business partners towards inculcating world-class EHS standards across the value chain of which ITC is a part.

All employees of ITC are expected to adhere to and comply with the EHS Policy and Corporate Standards on EHS.

ITC’s EHS Policy extends to all sites of the Company. It will be the overall responsibility of the Divisional/SBU Chief Executives, through the members of their Divisional Management Committees, General Managers and Unit Heads, to ensure implementation of this Policy and Corporate Standards on EHS, including formation of various committees and designating individuals for specific responsibilities in respect of their Division/SBU.

The Corporate EHS Department is responsible for reviewing

and updating Corporate Standards on EHS, and for providing

guidance and support to all concern.

.

ITC -FMCG

ITC -FMCG

Cigarettes ITC is the market leader in cigarettes in India. It’s highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment.

ITC's has presence in overseas markets as well. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands.

Foods

ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments.

The Foods business strives to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. ITC's

state-of-the-art Product Development facility is located at Bangalore.

The Foods business is represented in 4 categories in the market. These are:

Ready To Eat Foods Staples Confectionery Snack Foods

ITC’s six brand of food include:

Kitchens of India Aashirvaad Sun feast mint-o Candyman Bingo!

Lifestyle retailing

ITC’s ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of exclusive specialty stores.

Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di Wills – an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country.

With a distinctive presence across segments at the premium

end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today.

Education & Stationary

ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks. ITC's Education and Stationery Products are marketed under the brands "Classmate" and "Paperkraft".

The Classmate range of products is targeted at satisfying education & stationery needs of students & young adults. The product range includes Notebooks, Math Instruments, Scholastic Products as well as Writing Instruments.

The Paperkraft range of products aims at satisfying the stationery needs & office consumables need of office executives & working professional. The continuously expanding product range under Paperkraft includes Premium Business Paper, Paper Stationery, Markers & Highlighters.

Safety Matches

ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro. With differentiated product features and innovative value additions, these brands effectively address the needs of different consumer segments. The Aim brand is the largest selling brand of Safety Matches in India.

ITC also exports regular and premium safety matches brands to markets such as Middle East, Africa and the USA. ITC aims to enhance the competitiveness of the small and medium scale

sectors through its complementary R&D based product development and marketing strengths, especially the breadth and depth of the Company's trade marketing and distribution.

Aggarbattis

ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide consumer acceptance. The premium range from ITC, Mangaldeep has two offerings, Pratiti and Sarvatra and is specially hand rolled by Cottage Industries, Sri Aurobindo Ashram, Pondicherry.

Personal care

ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal.

Hotels: -

ITC entered into hotels field in 1975. He is giving best hospitality

services in some field. ITC have 46 hotels across 42 destination all

over India.

C. Packaging: -

ITC also producing packaging items like-

I. Flip top boxes.

II. Car board outers.

III. Shells and slides.

IV. Soft cup and strap labels

V. Bundle wraps

VI. Flap boxes

VII. Inner frames

VIII. Coupon inserts & Variety

IX. Folding crotons

D. Paper Board & Specialty paper : -

ITC has now integrates sits paperboard & specialty paper business into

its newly created (PSPD), to how new strategic & operational synergies.

The division also produced quality-

(a). Printing & Writing papers

(b). Eco- friendly papers

(c). Photo copier papers.

E. Information Technology (IT): - ITC has recently spun off its 20

year old information system division into a wholly owned subsidiary

to aggressively pursue growth opportunities in this sector

F. Life style retelling: - ITC also manufacturing ready made

garments range of international quality of relaxed wear under the

brand name “wills sport”. It have 48 retail out across 38 cites in the

country. Recently he also lunched another brand name “john

players” offers complete range of contemn porary men’s wear- like

shirts, Trousers, t-shirts & denims. It also lunches in Nov.

MARKETING STRATEGY USED BY ITC

ITC started an earnest exercise by creating a new brand image and corporate philosophy by investing in new business categories like personal care, premium apparel, rural business (e- Choupal) and foods. All along using its famed distribution strengths built through its successful past businesses like cigarettes, paperboards and packaging, hotels and agri business, to create synergies across its verticals and help prop up its new businesses, like personal care and foods. ITC has a well thought-out strategic approach. Rather than acquiring weaker brands to get into these new segments inorganically, it

created a range of new personal care and branded apparel brands.The first step in this well-planned strategy was the launch of Wills Lifestyle, the premium branded apparel business in 2002.ITC then moved on to take the competition head on in the FMCG domain, through ITC Foods in August 2001, and personal care business, which is the focal point of this story, in 2005. It has created good impact with its well etched-out Personal Care Brands. Under this category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia were designed to take care of various sets of consumer segments.

But behind this launch was five years of intensive on ground research of market conditions and consumer expectations. Over one lakh consumers were surveyed across the country to test various prototypes. Acceptance benchmark was kept as high as 90 percent for the final products. ITC called this exercise as '3E’ approach —explore, establish and execute. As an adage goes 'if you have to win a race, you have to clearly target the No 1', ITC too aimed the No 1 which happened to be the formidable HUL (which still reigns over 50 percent of the FMCG market). And ITC's target was HUL and P&G only. ITC roped in its tobacco business veteran Sandeep Kaul to spearhead the personal care launch; it also sought help from product formulation and branding experts in Europe and America to formulate the fragrance, aesthetics and packaging. Many of the brands have also been developed at its R&D centre. The results are there for everyone to see. In less than four years, ITC has been able to create brand awareness and consumer acceptance for its five product lines Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia—each targeted at the needs, aspirations and usage behaviour of

different consumer segments. Kaul informs that the strategy for designing personal care is that everyone is a potential consumer.Distribution system at ITC

The process of passing down each passing the product down the chain to the next organization through Chain of intermediaries, before it finally reaches the consumer or end-user is known as the 'distribution chain' or the 'channel.'

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers, Dealer Or wholesaler, who sells to end customers Advertisement typically used for consumption goods

ITC follows:

CHANNEL WISE DISTRIBUTION Here the total product is divided into different channels

like, Healthcare product, Personal care products, Home products & etc.

BEAT WISE DISTRIBUTION Here total market is divided into different areas where

the products are served to all the outlets exist in that area.

ITC supply chain consists of diverse categories with different priorities

• More than 1000+ SKUs

• Buying Value $68 MM• Warehousing space of more than 3.5m SFT around 55+ locations• Products manufactured at 45+ plants• More than 650 trucks moved every day • Direct distribution from factories to Distributors.Indirect movement through RDCs• Combination of Rail/Road/Sea movement within the country depending on the product type.(Target is Safer, Faster, cost effective)

ITC A RESPONSIBLE CITIZEN

ITC is a responsible corporate citizen: -

ITC is doing so many activities for the welfare of society and

darks as a responsible corporate leader without any gap. Some

of its major societal activation for the welfare of different

section of society is as follows-

a. Environment, health & safety (EHS)

b. Reaching out to society

c. Preserving national heritage.

d. Supporting sustainable development

a. Envoirment, health & Safety (EHS): - As a responsible

corporate citizen, ITC accords the highest priority to

environment, occupational health, and safety. It is committed

to protecting the environment in which it operates. It is equally

committed to ensuring very high standard of safety at the work

place.

It is a relegations of ITC” high EHS standards that lit has

been the recipient of several

National and international awards- such as-

ISO 14000

Sword of honour

Royal society of prevention of accidents awards.

National safety awards.

The corporate Environment award.

The golden peacock environment management award.

Excellence in pollution control management.

Prashanna patra award.

National Award for excellence in energy conservation.

b. Reaching out to society: - As a responsible corporate

citizen, ITC promotes art, culture and

education. Besides working for the protection and

enrichment of the environment and over all social

development.

Community development.

Education.

Protecting the environment.

c. Preserving National Heritage: - As a socially responsible

corporate citizen, ITC

Endeavors to creates value for the Indian society in multiple

ways, one of them being

Preservation of India” rich culture heritage ITC has made

significant contribution to the

Promotion of Indian classical music, theatre, are and cuisine

GRADES FOR MANAGERS

Senior Managers. (Managers)

Middleman Managers.(Asst. Managers)

Junior Managers. (Executives)

GRADES FOR WORKERS

Unskilled Workers.

Semi Skilled Workers.

Skilled Workers.

Highly Skilled Workers.

PROJECT REPORT ON HR PRACTICES AT ITC LTD.

PROJECT REPORT SUBMITTED ATGRAPHIC ERA UNIVERSITY

SUBMITTED BY SONAL SRIVASTAVA

INTRODUCTION

My research report is entitled “A study of HR Practices in ITC”. Firstly I

would like to discuss about HR Practices.

What are HR Practices?

HR Practices are those practices which are been done by the

organization for having optimum utilization of human resource of the

organization. These practices can be explained as follows:

Recruitment & Selection

Training & Development

Performance Appraisal System

Evaluation System

Feed Back Mechanism

Rewards to Employees

Work Remuneration of the employees

Increment practices

INTRODUCTION OF HRM

Human resource management is the planning , organizing, directing,

and controlling of the procurement, development, compensation,

integration, maintenance and separation of human resources to the end

that individual, organizational, and social objective are accomplished.

FEATURES OF HRM

Increased competition

Emphasis on quality in staff, goods/services

Flexibility in operations

Willingness to adopt to changing market needs

Global Market

OBJECTIVES OF HRM

Integration of HRM policy with business goals/objectives

Attainment of organizational objectives through human capital

Creation of flexible work hours/function

Creation of a flexible environment to be responsive to market

ambience, as per the need of the dizzily fast packed and changing

environment.

Integration of people related issues with business issues, while

bringing people related issues to the fore and advocating primacy

of business needs.

MEANING & DEFINITION “HRM is a management function that helps manager’s recruit, select,

train and develops members for an organization obviously HRM is

concerned with peoples dimension in organizations”

HRM: - It is also a management function concerned with hiring

motivating and maintaining people in an organization.

It is a series of integrated decision that from the employment

relationship; their quality contributes to the ability of the organization

and the employees to achieve their objective. Human resource

management is concerned with the people dimension in management.

since every organization is make up of people, acquiring their services,

developing their skill, motivating them to higher level of performance

and ensuring that they continue to maintain their commitment to the

organization are essential to achieving organizational objectives.

INTRODUCTION OF RECRUITMENT

The human resources are the most important assets of organization.

The success or failure of an organization is largely dependent on the

caliber of the people working therein. Without positive and creative

contribution from people, organization can’t progress and prosper. In

order to achieve the goals and perform the activities of an organization,

therefore we need to recruit people with requisite, skills, qualification

and experience. While doing so we have to keep the present as well as

future requirements of the organization in mind.

OBJECTIVE

To effectively manage the manpower recruitment in coherence with

long term and short term manpower planning of the organization

through a standard recruitment and selection policy.

To proactively and systematically identify the recruitment needs in

time. To ensure that all the recruitment are within the manpower budget

and as per the laid down policy.

The recruited people with required level of skilled and aptitude for

learning and growth.

SCOPE:

This policy shall apply to all PERMANENT management position in the

company including the workmen.

IDENTIFICATION OF VACANT POSITIONS

1. Total permanent manpower strength/budget for

organization has been sanctioned by the board of directors.

2. All the recruitment has necessarily to be made within the

approved budget/strength only.

3. Vacancies against the sanctioned budget may arise due to:

Retirement

Turnover

Natural Separation

4. whenever a vacancy arise, the concerned department has to

fill up the prescribed manpower requisition form clearly

indication the job description and specification, time frame and

send it to HR department.

HR PLANNING

HRP is the process of forecasting an organization’s future

demand for and supply of, the right type of people in the right number. It

is only after this that the HRM department can initiate the recruitment

and selection process. HRP is the sub-system in the total organizational

planning. Organizational planning includes managerial activities that set

the company’s objective. HRP facilitates the realization of the company’s

objectives by providing the right type and right number of personnel.

HRP then is like materials planning that estimate the type and quality of

the materials and supplies needed to facilitate the manufacturing

activities of the organization. HRP is variously called manpower planning,

personnel planning or employment planning.

RECRUITMENT SOURCES

The sources of recruitment may be broadly divided into two

categories: internal sources and external sources. On receipt of the

Manpower Requisition (MPR) form HR department will initiate

action of sourcing the candidates as under:

1. INTERNAL SOURCES:

As a matter of policy, the organization will encourage

to fill up the vacancies from within the existing people

if they are fulfilling the criteria and found suitable.

In order to invite application from internal sources,

notice/circular for all such vacancies will be put up on

the notice board.

In case any permanent employee dies in harness due to

accident or any other reason, one depend son of deceased

employee may be given preference in employment with the

company subject to his fulfilling the eligibility criteria based on

qualification and

experience as well as suitable vacancy in the company

at that time.

The conditions fulfilling the requirement may apply

against internal notification to HR department

through their department.

2. other sources :

Other sources can be tapped for recruitment only when

suitable candidates are mot available internally. Other

sources may include the following:

internal data bank

local employment exchange

advertisement through newspaper

Placement agencies.

Methods Of Recruitment

The following are the most commonly used method of recruiting people.

1. Internal Method

2. Direct Method

3. Indirect Method

INTERNAL METHOD:

PROMOTION AND TRANSFERS:

ITC Prefer to fill vacancies through promotion or transfers from within

wherever possible. Promotion involves movement of an employee from a

lower level position to higher level position accompanied by changes in

duties, responsibilities, status and value and value.

It may lead to changes in duties and responsibility, working conditions,

etc., but not necessarily salary. Internal promotions and transfers

certainly allow people greater scope to experiment with their career,

kindling ambitions and motivating them to take a shot at something

they might otherwise never have considered. The system, of course,

works best for young executives who are willing to take risks.

JOB POSITION

Job position is another way of hiring people from within. In this

method, the organization publicizes job openings on bulletin boards,

electronic media and similar outlets. Hindustan lever introduced its

version open job position in early 2002 and over 40 positions have since

been filed through the process. HLL even allows its employee to under

take career shifts, for example from technical position system.

EMPLOYEE REFERRALS

Employee referral means using personal contacts to locate job

opportunities. It is a recommendation from a current employee regarding

a job applicant. The logic behind employee referral is that “ it takes one to

know one” employee working in the organization in this case, are

encouraged to recommend the name of their friends working in other

organization for a possible vacancy in the near future. In fact, this has

become a popular way of recruiting people in the highly competitive

information technology industry now a day. Companies offer rich

rewards also to employees whose recommendation are accepted after the

routine screening and examining process is over- and job offers extended

to the suggested candidates.

Direct Method

Campus Recruitment

It is a method of recruiting by visiting and participating in college

campuses and their placement centers. Here the recruiter’s visits reputed

educational institutions such as IITs, IIMs colleges and universities with a

view to pickup job aspirants having a requisite technical of professional

skills. Job seekers are provided information about the jobs and the

recruiter’s inturen get a snap shot of job seekers through constant

interchange of information with respective institutions. A preliminary

screening is done within the campus and the short listed students are

then subjected to the reminder of the selection process. In view of the

growing demand for young managers, most reputed organizations visit

regularly and even sponsor certain popular activities with a view to earn

goodwill in the job market. Advantage of this method include: the

placement centre helps locate applicants and provides resumes to

organization; applicants can be prescreened; applicants will not have to

be lured away from a current job and lower salary expectation.

Indirect Method

Advertisement

This includes advertisement in news papers; trade, professionals and

technical journals; radio and TV etc. In recent time this medium became

just as colorful lively and imaginative as consumer advertising. The ad

generally gives a brief outline of the job responsibilities, compensation

package, prospects in the organization etc. This method is appropriate

when (a) the organization intends to reach a large target group and (b)

the organization wants a fairly good no. of talented people who are

geographically spread out.

Head Hunters

There is an influx of executive search agencies also known as head

hunters who specialize in selection of professionals for very senior or top

posts, where applicants are in short supply and employers have no time

to go round in search of the best talents. Such vacancies are fewer and far

between and organizations prefer hiring a head hunter who maintains

confidentiality of the employer and are specialize in recruiting the best

talent strictly as per the job specification. But, these specialists bodies

charges hefty professional fees. However, the high cost is outweighed by

the benefit of recruiting the best talent without going through the

cumbersome and time consuming process of internal recruitment system.

SELECTION PROCEDURE

1. Screening of Application :

All application received from various sources will be

screened by the concerned department and HR

based on the job description and specification and

the applicant profile.

Shorting of prima facile suitable candidates who

should be called for test/interview shall be

prepared.

The ratio between the number of vacancy and the

number of candidate to be called for test/interview

should normally be 1:5.

2. TEST :

Depending on the requirement of the job if required,

management may conduct

written/aptitude/psychometric/physical or any other

test as deem fit.

Short listed application will be send formal letter for

appearing test at least 15 days in advance.

Qualifying criteria for the test will be determined by

the management depending on the nature and

requirement of the job.

3. INTERVIEW:

All the candidates short listed for interview will be

informed through a formal call letter for attending

interview at least 15 days in advance.

The candidate will be interview by the interview

panel.

4. FINAL SELECTIOM AND APPOINTMENT:

Recommendation of the interview panel will be put up

before the MD by the HR Department for his approval.

Candidates for the officer and above after interviewed by

the panel will be finally interview by the MD.

Selection of candidates will be strictly on the basis of

merit. Other things being equal local candidate from state

of Bihar will be given preference.

Appointment letter will be issued to the finally selected

candidates after duly approved by MD. However, in case

appointment letter can initially be issued to the candidates

and the detailed formal appointment letter can be issued

at the time of joining.

Before letter of appointment is issued to candidates HR

department will ensure the following:

1. Check and verify all the personal details furnished

by the candidates.

2. Verify the certificates and other credentials.

3. Make necessary reference/antecedents verifications

whenever required.

5. Joining Formalities:

(a) Employees joining shall first report in the

HR department will facilitate in completing

the joining formalities such as filling of

joining report and other necessary forms.

(b) HR department will ensure that the

candidates will be allowed to join subject to

their being found medically.

RESEARCH METHODOLOGY

RESEARCH FORMULATION

The research to be conducted can be formulated as:-

“A detail study of the HR PRACTICES followed by ITC”

RESEARCH OBJECTIVES

1. To study the HR PRACTICES in ITC.

2. To know the recruitment & selection procedures adopted in this company.

3. To improve training and development programs used in the company.

4. To know how the performance of the employees is being appraised.

5. To provide better employee welfare.

6. To increase labour productivity.

RESEARCH DESIGN

Descriptive Research has been used in order to conduct the study.

DATA COLLECTION METHOD

I took the help of primary and secondary data to achieve the objective of my project, which include:-

Primary Data

Observation Questionnaire

Secondary Data

Websites Transcripts of Books Journals Handouts

LIMITATAION OF THE STUDY

1. The problem discussed was more is technical terms, thus was difficult to comprehend.

2. Views of only few members could be included because of time limitation.

Analysis And Data Interpretation

Q1. How long you are working in the organization ?

0-0.5 year7%

0.5-2 years19%

2--3 years35%

3 - more years39%

Q2. what are the various sources of recruitment in your Organization?

others2%

news paper advertisement4%

references8%

management86%

Q3. Are you satisfied with the recruitment process of your company ?

yes68%

no32%

Q4. Are you satisfied with your organization salary increment Policy ?

yes47%

no23%

can't say30%

Q5. Are you satisfied with the training procedure given in the Organization ?

yes68%

no32%

Q6. Are you getting regular training in your company ?

yes68%

no32%

Q7. What methods is used for the performance appraisal system in your organization?

ranking72%

forced distribution17%

others11%

Q8. Are you satisfied with your promotion activities in your Organization?

.

yes77%

no23%

Q9. Does the present performance appraisal system meet your Career advancement?

yes66%

no6%

can't say28%

10.Are you comfortable with the working environment?

yes91%

no9%

FINDINGS

SWOT OF ITC

Strengths

ITC leveraged it traditional businesses to develop new brands for new segments. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

Weaknesses

To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market. Unrelated diversification is also a major weakness of ITC.

Opportunities

Core brands such as Aashirwad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration.ITC is moving into new and emerging sectors including Information Technology, supporting business solutions.

e-Choupal is a well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages

Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

Threats

The obvious threat is from competition, both domestic and international. ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future.

CONCLUSION

There are the following conclusions come up after the research of the project by filling the questionnaire:

The working environment of the organization is excellent this is reason why employees are doing the work their and they are stable there.

Generally organization appointed the employees through the recommendations that is references even though other sources are there.

The employees are satisfied with the recruitment process of the organization.

Most of the employees consider that the salary increment policy is good.

Generally ranking method is used in the organization for the performance appraisal system and with the promotion activities.

As they accept that the working environment is really good this shows thye are satisfied and the satisfaction of the employees of the organization is very necessary.

And at last I would like to say that satisfied employees contribute more to the organization this is the reason why ITC is growing faster.

Recommendations and suggestions

There are the following suggestions being an HR student I would like to give the organization:

Organization should keep the eyes on the recruitment process they should recruit the employees from outside as well means from where they get the employees they should recruit them.

As the organization is growing faster they should emphasis on the training programs even though their training programs are quite good.

Organization should regularly give the increment on the salary so that who are not satisfied they would become also satisfied.

Organization should analyze the training methods and should adopt those methods which are good for the employees and promotion activities should be good so that employees are satisfied as we know this is the basic requirement of the success.

APPENDICES

A questionnaire was designed to study the “Evaluation of the HR PRACTICES Followed by ITC”. It was filled by the employees of ITC

1) HR PRACTICES in ITC is transparent

2) Man power planning forms the basis for recruitment

3) ITC is very clear about the attributes, competencies, attitudes and values they want in next employee.

4) Complete job description and specification is being laid down in an advance for recruitment.

5) ITC is able to attract best applicants.

6) As a policy the recruitment at higher level should be from internal source and of lower level position from external sources.

7) A strict selection procedure is being followed that is clear to all employees.

8) Psychometric tests are being conducted for personality evaluation of candidates during selection procedure.

9) Selected employee is made clear of his probation period on his joining in which period his services can be suspended in case of unfit performance.

10) You are satisfied with the preference being given to internal candidate at the time of selection.

11)The company’s performance with its present workforce is excellent.

12) The process of selection is completely free from all kind of personal biases.

REFRENCES

Human Resource Management by Gary Dessler

Human Resource Development by S.R. Kandula

Human Resource Management by S.V Gangkar

www.google.com

www.itcportal.com