Human Resource Planning and Audit: Cadbury HRM Project

This project, submitted for the MBAEH18301 Human Resource Planning and Audit course, examines the Human Resource Management (HRM) practices of Mondelez India Foods Limited, formerly known as Cadbury India Ltd. The project begins with an introduction to HRM, defining its core functions and significance within organizations. It then provides an overview of Mondelez India Foods Limited, including its history, manufacturing facilities, and market position. The main focus is on analyzing Cadbury's HRM strategies, covering its scope, objectives, and various functions such as recruitment, training, and employee relations. The project also highlights the role of HRM in achieving organizational goals and employee satisfaction. The content includes an executive summary, introduction, literature review on HRM, and a detailed analysis of Cadbury's HRM practices. The project concludes with insights into the importance of effective HRM in the context of a leading FMCG company, emphasizing its impact on employee motivation, productivity, and overall organizational success. The project is a comprehensive study of how Cadbury manages its human resources to achieve its strategic objectives.

MID – SEMESTER EXAMINATION
MODE OF EXAMINATION – PROJECT SUBMISSION
FOLLOWED BY VIVA-VOICE
SUBJECT NAME- HUMAN RESOURCE PLANNING AND
AUDIT
SUBJECT CODE MBAEH18301
DATE OF EXAMINATION :-
SUBMITTED TO:- SUBMITTED BY:-
NAME
ACKNOWLEDGEMENT
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I have taken efforts in this project. However, it would not
have been possible without the kind support and help of
many individuals and organizations. I would like to extend
my sincere thanks to all of them. I am highly indebted to
_____________________ for their guidance and constant
supervision as well as for providing necessary information
regarding the project & also, for their support in
completing the project.
I would like to express my gratitude towards my parents for
their kind co- operation and encouragement which help me
in completion of this project.
I would like to express my special gratitude and thanks to
friends for giving me such attention and time. My thanks
and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with
their abilities.
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DECLARATION
I hereby declare that the project entitled
“International HRM practices of Cadbury”
submitted to ‘JAGRAN LAKECITY UNIVERSITY
BHOPAL’ is record of original work done by me
under the guidance of
______________________( department of
commerce). Any inferences, research or
similarity is purely coincidental.
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CONTENT
I. Executive Summary
………………………………..….5
II. Chapter 1
Introduction…………………………….……6
Human Resource Management
III. Chapter 2 ……………………………………..……....…9
What Is Human Resource Management ?
Chapter 2.1 -Nature Of Hrm …………………....…….11
IV. Chapter 3………………………………………..…….. 12
Mondelez India Foods Limited
(Formerly Cadbury India Ltd.)
Chapter 3.1-Rajesh Ramanathan………………………13
V. Chapter 4……………………………………………….14
Human Resource Management of Mondelez India Foods
Limited (Formerly Cadbury India Ltd.)
Chapter 4.1 -Scope Of Hrm………………….……..…..16
Chapter 4.2- Objectives Of Hrm…………………..……19
Chapter 4.3- Functions Of Hrm………………….….….20
Chapter 4.4 Role Of Hrm…………………………...…..23
VI. Conclusion………………………………………….…28
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EXECUTIVE SUMMARY
Modern management considers human being as resource and it is an importance for the
success of any organization. It is the strength and aid. Therefore employees attitudes,
interest, quality, job satisfaction, etc., have a bearing productivity of a firm unless the
management is able to recognize employees needs and wants they will lose motivation
and morale and it will affect the best interest of the firm.Work is one of the most
important activities in a person’s life . Dissatisfaction in work can lead in many
circumstances to lower production and friction on the job. So that it must be considered
by the management and steps should be taken to find out the factors which cause job
dissatisfaction and to reduce such dissatisfaction. In general employee satisfaction is the
attitude towards the work environment, salary, relationship with their colleagues, job
security, grievance handling, performance appraisal, training and development,
management style, quality policy, career counseling and so on. In this project we are
going to study about the human resources management carried by Mondelez India
Foods Limited (Formerly Cadbury India Ltd.)
Cadbury India began its operations in India in 1948 by importing chocolates. It now has
manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Hyderabad,
Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai,
Kolkata and Chennai. The corporate head office is in Mumbai. The head office is
presently situated at Pedder Road, Mumbai, under the name of "Cadbury House".
Cadbury can be termed as one of the best performing FMCG Companies today. Unlike its
peer group, which are more of complete food companies. Cadbury is very niche player
with a dominant position in Indian Confectionary Chocolate Market. This makes it
different and more successful in comparison with peer companies. In the period of
slowdown in the economy, where FMCG companies were the first ones to hit upon.
Reduction the real income of the consumer has made its direct impact on the top-line
growth of the company. Still, Cadbury has been able to drive its bottom-line growth. The
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reason for the success is the Corporate Governance practised in the organization. Thus
let’s start first by studying Human Resource Management and then study Cadbury India
Limited now known as Mondelez India Foods Limited’s Human Resources Strategies.
CHAPTER 1
INTRODUCTION
HUMAN RESOURCE MANAGEMENT
Human resource management (HRM, or simply HR) is a function in organizations
designed to maximize employee performance in service of their employer’s strategic
objectives. HR is primarily concerned with how people are managed within
organizations, focusing on policies and systems.HR departments and units in
organizations are typically responsible for a number of activities, including employee
recruitment, training and development, performance appraisal, and rewarding (e.g.,
managing pay and benefit systems). HR is also concerned with industrial relations,
that is, the balancing of organizational practices with regulations arising from collective
bargaining and governmental laws.
HR is a product of the human relations movement of the early 20th century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. The function was initially dominated by transactional
work, such as payroll and benefits administration, but due to globalization, company
consolidation, technological advancement, and further research, HR now focuses on
strategic initiatives like mergers and acquisitions, talent management, succession
planning, industrial and labor relations, and diversity and inclusion.
In startup companies, HR's duties may be performed by trained professionals. In larger
companies, an entire functional group is typically dedicated to the discipline, with staff
specializing in various HR tasks and functional leadership engaging in strategic decision
making across the business. To train practitioners for the profession, institutions of higher
education, professional associations, and companies themselves have created programs of
study dedicated explicitly to the duties of the function.
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Academic and practitioner organizations likewise seek to engage and further the field of
HR, as evidenced by several field-specific publications. HR is also a field of research
study that is popular within the fields of management and
industrial/organizational psychology, with research articles appearing in a number of
academic journals, including those mentioned later in this article.
In the current global work environment, most companies focus on lowering employee
turnover and retaining the talent and knowledge held by their workforce. New hiring not
only entails a high cost but also increases the risk of the newcomer not being able to
replace the person who was working in that position before. HR departments also strive
to offer benefits that will appeal to workers, thus reducing the risk of losing knowledge.
Human beings are social beings and hardly ever live and work in isolation. We always
plan, develop and manage our relations both consciously and unconsciously. The
relations are the outcome of our actions and depend to a great extent upon our ability to
manage our actions. From childhood each and every individual acquire knowledge and
experience on understanding others and how to behave in each and every situations in
life. Later we carry forward this learning and understanding in carrying and managing
relations at our workplace. The whole context of Human Resource Management
revolves around this core matter of managing relations at work place.Since mid
1980’s Human Resource Management (HRM) has gained acceptance in both academic
and commercial circle. HRM is a multidisciplinary organizational function that draws
theories and ideas from various fields such as management, psychology, sociology and
economics. There is no best way to manage people and no manager has formulated how
people can be managed effectively, because people are complex beings with complex
needs. Effective HRM depends very much on the causes and conditions that an
organizational setting would provide. Any Organization has three basic components,
People, Purpose, and Structure.
In 1994, a noted leader in the human resources (HR) field made the following
observation: Yesterday, the company with the access most to the capital or the latest
technology had the best competitive advantage.
Today, companies that offer products with the highest quality are the ones with a leg up
on the competition; But the only thing that will uphold a company’s advantage
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tomorrow is the caliber of people in the organization. That predicted future is today’s
reality. Most managers in public- and private sector firms of all sizes would agree that
people truly are the organization’s most important asset. Having competent staff on the
payroll does not guarantee that a firm’s human resources will be a source of
competitive advantage. However in order to remain competitive, to grow, and diversify
an organization must ensure that its employees are qualified, placed in appropriate
positions, properly trained, managed effectively, and committed to the firm’s success.
The goal of HRM is to maximize employees’ contributions in order to achieve optimal
productivity and effectiveness, while simultaneously attaining individual objectives
(such as having a challenging job and obtaining recognition), and societal objectives
(such as legal compliance and demonstrating social responsibility).
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CHAPTER 2
WHAT IS HUMAN RESOURCE MANAGEMENT ?
HRM is the study of activities regarding people working in an organization. It is a
managerial function that tries to match an organization’s needs to the skills and abilities
of its employees.
Definitions of HRM
Human resources management (HRM) is a management function concerned with
hiring, motivating and maintaining people in an organization. It focuses on people in
organizations. Human resource management is designing management systems to
ensure that human talent is used effectively and efficiently to accomplish Organizational
goals.
HRM is the personnel function which is concerned with procurement, development,
compensation, integration and maintenance of the personnel of an organization for the
purpose of contributing towards the accomplishments of the organization’s objectives.
Therefore, personnel management is the planning, organizing, directing, and
controlling of the performance of those operative functions (Edward B. Philippo).
According to the Invancevich and Glueck, “HRM is concerned with the most effective
use of people o achieve organizational and individual goals. It is the way of managing
people at work, so that they give their best to the organization”.
According to Dessler (2008) the policies and practices involved in carrying out the
“people” or human resource aspects of a management position, including recruiting,
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screening, training, rewarding, and appraising comprises of HRM.
Generally HRM refers to the management of people in organizations. It comprises of the
activities, policies, and practices involved in obtaining, developing, utilizing, evaluating,
maintaining, and retaining the appropriate number and skill mix of employees to
accomplish the organization’s objectives. The goal of HRM is to maximize employees’
contributions in order to achieve optimal productivity and effectiveness, while
simultaneously attaining individual objectives (such as having a challenging job and
obtaining recognition), and societal objectives (such as legal compliance and
demonstrating social responsibility).
In short Human Resource Management (HRM) can be defined as the art of procuring,
developing and maintaining competent workforce to achieve the goals of an organization
in an effective and efficient manner.
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CHAPTER 2.1
NATURE OF HRM
HRM is a management function that helps manager’s to recruit, select, train and develop
members for an organization. HRM is concerned with people’s dimension in
organizations.
The following constitute the core of HRM
1. HRM Involves the Application of Management Functions and Principles.
The functions and principles are applied to acquiring, developing, maintaining and
providing remuneration to employees in organization.
2. Decision Relating to Employees must be Integrated.
Decisions on different aspects of employees must be consistent with other human
resource (HR) decisions.
3. Decisions Made Influence the Effectiveness of an Organization.
Effectiveness of an organization will result in betterment of services to customers in the
form of high quality products supplied at reasonable costs.
4. HRM Functions are not Confined to Business Establishments Only but
applicable to non-business organizations such as education, health care, recreation
and like.
HRM refers to a set of programmes, functions and activities designed and carried out in
order to maximize both employee as well as organizational effectiveness.
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CHAPTER 3
Mondelez India Foods Limited (Formerly Cadbury India Ltd.)
Cadbury India began its operations in India in 1948 by importing chocolates. It now has
manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Hyderabad,
Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai,
Kolkata and Chennai. The corporate head office is in Mumbai. The head office is
presently situated at Pedder Road, Mumbai, under the name of "Cadbury House". This
monumental structure at Pedder Road has been a landmark for the citizens of Mumbai
since its creation. Since 1965 Cadbury has also pioneered the development of cocoa
cultivation in India. For over two decades, Cadbury has worked with the Kerala
Agricultural University to undertake cocoa research.
Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India operates
in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy. Some
of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville,
Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. Its products include
Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5-Star, Temptations, Perk, Gems (a
version of M&M's), Eclairs, Bournvita, Celebrations, Bilkul, Cadbury Dairy Milk Shots,
Toblerone, Halls, Tang and Oreo.
Cadbury is a leading global confectionery company with an outstanding portfolio of
chocolate, gum and candy brands. It has the number one or number two position in over
20 of the world’s 50 largest confectionery markets. Cadbury also has the largest and most
broadly spread emerging markets business among all confectionary companies. With
origins stretching back nearly 200 years, Cadbury’s brands include many global, regional
and local favouritesIt is the market leader in the chocolate confectionery business with
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a market share of over 70%.
Cadbury India, on 21 April 2014, changed its name to Mondelez India Foods Limited.
CHAPTER 3.1
RAJESH RAMANATHAN
Executive Director - Human Resources, India with Mondelez India Foods Limited
(Formerly known as Cadbury India Limited ,
Rajesh Ramanathan is currently Executive Director- Human Resources, India with
Mondelez India Foods Limited, a part of Mondelēz International. He joined Cadbury
India in 2001 to hold a key position in ‘Organization effectiveness’.
In 2005, Rajesh was promoted to Regional Head-Capability and Talent, Asia Pacific at
Cadbury Schweppes. In 2007, Rajesh was then again promoted to become VP - Human
Resource for Cadbury India.
Prior to this Rajesh has worked ITC Agri Division Ltd and with Pillsbury India.
Rajesh joined ITC Agri Division Ltd in 1995 as a Human Resource Business Partner. In
1998 he moved to Pillsbury India where he held the position of Corporate Human
Resource Manager.Rajesh has earned a Bachelor’s Degree in Economics from the Hindu
College, Delhi University and has completed an MBA in HR from the XLRI Jamshedpur.
Rajesh lives in Mumbai. He enjoys cooking and has an artistic inclination for charcoal
sketching.
For any business to run one needs four M’s namely Man, Money, Machine and Material.
Managing other three resources other than men, are easy to handle. Men are very difficult
to handle because no two human beings are similar in all way. Human beings can think,
feel and give response. Handling humans is more important for any business because
human being have crucial potential that may be very profitable for the business. And
these potential can be developed to an unlimited extent if they are provided with proper
environment. So the function of managing men is as important as finance or marketing
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function in any business.
CHAPTER 4
HUMAN RESOURCE MANAGEMENT OF
MONDELEZ INDIA FOODS LIMITED (FORMERLY
CADBURY INDIA LTD.)
HRM refers to practices and policies framed for the management of human resources in
an organization, including Recruiting, screening, rewarding and appraising.
Human resources have at least two meanings depending on context. The original
usage derives from political economy and economics, where it was traditionally called
labor, one of three factors of production. The more common usage within corporations
and businesses refers to the individuals within the firm, and to the portion of the firm's
organization that deals with hiring, firing, training, and other personnel issues. This
article addresses both definitions.
The objective of Human Resources is to maximize the return on investment from
the organization's human capital.
THE SCOPE OF HRM is indeed very vast. All major activities in the working life of a
worker-from the time of his or her entry into the organization until he or she leaves-
come under the purview of HRM.Specifically, the activities include are
▪ HR Planning
▪ Job analysis and design
▪ Recruitment and selection
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▪ Orientation and placement
▪ Training and development
▪ Performance Appraisal and Job evaluation
▪ Employee and executive remuneration
▪ Employee Motivation
▪ Employee Welfare
It is the responsibility of human resource managers to conduct these activities in an
effective, legal, fair, and consistent manner.
"Human resource management aims to improve the productive contribution of
individuals while simultaneously attempting to attain other societal and individual
employee objectives." Schwind, Das &Wagar (2005).
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CHAPTER 4.1
SCOPE OF HRM
The scope of HRM is indeed vast. All major activities in the working life of a worker
– from the time of his or her entry into an organization until he or she leaves the
organizations comes under the purview of HRM.
The major HRM activities include HR planning, job analysis, job design, employee
hiring, employee and executive remuneration, employee motivation, employee
maintenance, industrial relations and prospects of HRM.
The scope of Human Resources Management extends to:
❖ All the decisions, strategies, factors, principles, operations, practices, functions,
activities and methods related to the management of people as employees in any
type of organization.
❖ All the dimensions related to people in their employment relationships, and all the
dynamics that flow from it.
The scope of HRM is really vast. All major activities n the working life of a worker –
from the time of his or her entry into an organization until he or she leaves it comes
under the purview of HRM. American Society for Training and Development (ASTD)
conducted fairly an exhaustive study in this field and identified nine broad areas of
activities of HRM.
These are given below:
✓ Human Resource Planning
✓ Design of the Organization and Job
✓ Selection and Staffing
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✓ Training and Development
✓ Organizational Development
✓ Compensation and Benefits
✓ Employee Assistance
✓ Union/Labour Relations
✓ Personnel Research and Information System
a) Human Resource Planning:
The objective of HR Planning is to ensure that the organization has the right types of
persons at the right time at the right place. It prepares human resources inventory
with a view to assess present and future needs, availability and possible shortages in
human resource. There upon, HR Planning forecast demand and supplies and
identify sources of selection. HR Planning develops strategies both long-term and
short-term, to meet the man-power requirement.
b) Design of Organization and Job:
This is the task of laying down organization structure, authority, relationship and
responsibilities. This will also mean definition of work contents for each position in
the organization. This is done by “job description”. Another important step is “Job
specification”.
Job specification identifies the attributes of persons who will be most suitable for
each job which is defined by job description.
c) Selection and Staffing:
This is the process of recruitment and selection of staff. This involves matching people
and their expectations with which the job specifications and career path available
within the organization.
d) Training and Development:
This involves an organized attempt to find out training needs of the individuals to meet
the knowledge and skill which is needed not only to perform current job but also to
fulfill the future needs of the organization.
e) Organizational Development:
This is an important aspect whereby “Synergetic effect” is generated in an
organization i.e. healthy interpersonal and inter-group relationship within the
organization.
f) Compensation and Benefits:
This is the area of wages and salaries administration where wages and compensations
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are fixed scientifically to meet fairness and equity criteria. In addition labour welfare
measures are involved which include benefits and services.
g) Employee Assistance: Each employee is unique in character, personality, expectation and
temperament. By and large each one of them faces problems everyday. Some are personal
some are official. In their case he or she remains worried. Such worries must be removed to
make him or her more productive and happy.
CHAPTER 4.2
OBJECTIVES OF HRM
The primary objective of HRM is to ensure the availability of competent and willing
workforce to an organization. The specific objectives include the following:
1) Human capital :
Assisting the organization in obtaining the right number and types of employees to fulfill its
strategic and operational goals
2)Developing organizational climate:
Helping to create a climate in which employees are encouraged to develop and utilize
their skills to the fullest and to employ the skills and abilities of the work for co
efficiently
3)Helping to maintain performance standards and increase productivity through
effective job design; providing adequate orientation, training and development;
providing performance-related feedback; and ensuring effective two-way
communication.
4)Helping to establish and maintain a harmonious employer/employee relationship
5)Helping to create and maintain a safe and healthy work environment
6)Developing programs to meet the economic, psychological, and social needs of
the employees and helping the organization to retain the productive employees
7)Ensuring that the organization is in compliance with provincial/territorial and
federal laws affecting the workplace (such as human rights, employment equity,
occupational health and safety, employment standards, and labor relations legislation).
To help the organization to reach its goals
8) To provide organization with well-trained and well-motivated employees
9)To increase the employees satisfaction and self-actualization
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10)To develop and maintain the quality of work life.
11)To communicate HR policies to all employees.
12) To help maintain ethical polices and behavior.
The above stated HRM objectives can be summarized under four specific objectives: societal,
organizational, and functional and personnel.
1) Societal Objectives:
Seek to ensure that the organization becomes socially responsible to the needs and
challenges of the society while minimizing the negative impact of such demands upon
the organization. The failure of the organizations to use their resources for the
society’s benefit in ethical ways may lead to restriction.
2) Organizational Objectives:
It recognizes the role of HRM in bringing about organizational effectiveness. It makes
sure that HRM is not a standalone department, but rather a means to assist the
organization with its primary objectives. The HR department exists to serve the rest of
the organization.
3) Functional Objectives:
Is to maintain the department’s contribution at a level appropriate to the organization’s
needs. Human resources are to be adjusted to suit the organization’s demands. The
department’s value should not become too expensive at the cost of the organization it
serves.
4) Personnel Objectives:
It is to assist employees in achieving their personal goals, at least as far as these goals
enhance the individual’s contribution to the organization. Personal objectives of
employees must be met if they are to be maintained, retained and motivated. Otherwise
employee performance and satisfaction may decline giving rise to employee turnover.
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CHAPTER 4.3
FUNCTIONS OF HRM
Human Resources management has an important role to play in equipping organizations
to meet the challenges of an expanding and increasingly competitive sector. Increase in
staff numbers, contractual diversification and changes in demographic profile which
compel the HR managers to reconfigure the role and significance of human resources
management. The functions are responsive to current staffing needs, but can be proactive
in reshaping organizational objectives. All the functions of HRM are correlated with the
core objectives of HRM. For example personal objectives is sought to be realized
through functions like remuneration, assessment etc.
HR management can be thought of as seven interlinked functions taking place within
organizations. Additionally, external forces—legal, economic, technological, global,
environmental, cultural/geographic, political, and social—significantly affect how HR
functions are designed, managed, and changed.
The functions can be grouped as follows:
Strategic HR Management:
As a part of maintaining organizational competitiveness, strategic planning for HR
effectiveness can be increased through the use of HR metrics and HR technology. Human
resource planning (HRP) function determine the number and type of employees needed
to accomplish organizational goals. HRP includes creating venture teams with a balanced
skill-mix, recruiting the right people, and voluntary team assignment. This function
analyzes and determines
personnel needs in order to create effective innovation teams. The basic HRP strategy is
staffing and employee development.
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Equal Employment Opportunity:
Compliance with equal employment opportunity (EEO) laws and regulations affects all
other HR activities.
Staffing: The aim of staffing is to provide a sufficient supply of qualified individuals to
fill jobs in an organization. Job analysis, recruitment and selection are the main functions
under staffing. Workers job design and job analysis laid the foundation for staffing by
identifying what diverse people do in their jobs and how they are affected by them. Job
analysis is the process of describing the nature of a job and specifying the human
requirements such as knowledge, skills, and experience needed to perform the job.
The end result of job analysis is job description. Job description spells out work duties
and activities of employees.
Through HR planning, managers anticipate the future supply of and demand for
employees and the nature of workforce issues, including the retention of employees. So
HRP precedes the actual selection of people for organization. These factors are used
when recruiting applicants for job openings. The selection process is concerned with
choosing qualified individuals to fill those jobs.
In the selection function, the most qualified applicants are selected for hiring from among
the applicants based on the extent to which their abilities and skills are matching with the
job.
Talent Management and Development:
Beginning with the orientation of new employees, talent management and development
includes different types of training. Orientation is the first step towards helping a new
employee to adjust himself to the new job and the employer. It is a method to acquaint
new employees with particular aspects of their new job, including pay and benefit
programmes, working hours and company rules and expectations.
Training and Development programs provide useful means of assuring that the
employees are capable of performing their jobs at acceptable levels and also more than
that. All the organizations provide training for new and in experienced employee. In
addition, organization often provide both on the job and off the job training programmes
for those employees whose jobs are undergoing change.
Likewise, HR development and succession planning of employees and managers is
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necessary to prepare for future challenges. Career planning has developed as result of the
desire of many employees to grow in their jobs and to advance in their career. Career
planning activities include assessing an individual employee’s potential for growth and
advancement in the organization.
Total Rewards:
Compensation in the form of pay, incentives and benefits are the rewards given to the
employees for performing organizational work. Compensation management is the
method for determining how much employees should be paid for performing certain jobs.
Compensation affects staffing in that people are generally attracted to organizations
offering a higher level of pay in exchange for the work performed. To be competitive,
employers develop and refine their basic compensation systems and may use variable pay
programs such as incentive rewards, promotion from within the team, recognition
rewards, balancing team and individual rewards etc.
This function uses rewards to motivate personnel to achieve an organization’s goals of
productivity, innovation and profitability. Compensation is also related to employee
development in that it provides an important incentive in motivating employees to higher
levels of job performance to higher paying jobs in the organization. Benefits are another
form of compensation to employees other than direct pay for the work performed.
Benefits include both legally required items and those offered at employer’s discretion.
Benefits are primarily related to the area of employee maintenance as they provide for
many basic employee needs.
Risk Management and Worker Protection:
HRM addresses various workplace risks to ensure protection of workers by meeting legal
requirements and being more responsive to concerns for workplace health and safety
along with disaster and recovery planning.
Employee and Labor Relations:
The relationship between managers and their employees must be handled legally and
effectively. Employer and employee rights must be addressed. It is important to develop,
communicate, and update HR policies and procedures so that managers and employees
alike know what is expected. In some organizations, union/management relations must be
addressed as well. The term labour relation refers to the interaction with employees who
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are represented by a trade union. Unions are organization of employees who join together
to obtain more voice in decisions affecting wages, benefits, working conditions and other
aspects of employment. With regard to labour relations the major function of HR
personnel includes negotiating with the unions regarding wages, service conditions and
resolving disputes and grievances.
CHAPTER 4.4
ROLE OF HRM
The role of HRM is to plan, develop and administer policies and programs designed to
make optimum use of an organizations human resources. It is that part of management
which is concerned with the people at work and with their relationship within enterprises.
Its objectives are: (a) effective utilization of human resources, (b) desirable working
relationships among all members of the organizations, and (c) maximum individual
development. Human resources function as primarily administrative and professional.
HR staff focused on administering benefits and other payroll and operational functions
and didn’t think of themselves as playing a part in the firm’s overall strategy.
HR professionals have an all encompassing role. They are required to have a thorough
knowledge of the organization and its intricacies and complexities. The ultimate goal of
every HR person should be to develop a linkage between the employee and organization
because employee’s commitment to the organization is crucial.
The first and foremost role of HR personnel is to impart continuous education to the
employees about the changes and challenges facing the country in general and their
organization in particular. The employees should know about the balance sheet of the
company, sales progress, and diversification of plans, share price movements, turnover
and other details about the company. The HR professionals should impart
such knowledge to all employees through small booklets, video films and lectures.
The primary responsibilities of Human Resource managers are:
➢ To develop a thorough knowledge of corporate culture, plans and policies.
➢ To act as an internal change agent and consultant
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➢ To initiate change and act as an expert and facilitator
➢ To actively involve in company’s strategy formulation
➢ To keep communication line open between the HRD function and individuals
and groups both within and outside the organization.
➢ To identify and evolve HRD strategies in consonance with overall business
strategy.
➢ To facilitate the development of various organizational teams and their
working relationship with other teams and individuals.
➢ To try and relate people and work so that the organization objectives are
achieved efficiently and effectively.
➢ To diagnose problems and determine appropriate solution particularly in the
human resource areas.
➢ To provide co-ordination and support services for the delivery of HRD
programmes and services.
➢ To evaluate the impact of an HRD intervention or to conduct research so as to identify,
develop or test how HRD In general has improved individual and organizational
performance.
Different management gurus have deliberated different roles for the HR manager based
on the major responsibilities that they full fill in the organization. Few of the commonly
accepted models are enumerated below.
According to Dave Ulrich HR plays four key roles.
1. Strategic Partner Role-turning strategy into results by building organizations that
create value;
2. Change Agent Role- making change happen, and in particular, help it happen fast
3. Employees Champion Role managing the talent or the intellectual capital within a
firm
4. Administrative Role trying to get things to happen better, faster and cheaper.
The role HR in organizations has undergone an extensive change and many organizations
have gradually oriented themselves from the traditional personnel management to a
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human resources management approach. The basic approach of HRM is to perceive the
organization as a whole. Its emphasis is not only on production and productivity but also
on the quality of life. It seeks to achieve the paramount development of human resources
and the utmost possible socio-economic development.
Current Classification of HR roles, several roles can be fulfilled by HR management. The
nature and extent of these roles depend on both what upper management wants HR
management to do and what competencies the HR staff have demonstrated. Three roles
are typically identified for HR. The focus of each of them is elaborated below:
1. Administrative Role of HR –
The administrative role of HR management has been heavily oriented to administration
and record keeping including essential legal paperwork and policy implementation. Major
changes have happened in the administrative role of HR during the recent years. Two
major shifts driving the transformation of the administrative role are: Greater use of
technology and Out sourcing. Technology has been widely used to improve the
administrative efficiency of HR and the responsiveness of HR to employees and managers,
more HR functions are becoming available electronically or are being done on the Internet
using Web-based technology.
Technology is being used in most HR activities, from employment applications and
employee benefits enrollments to e-learning using Internet-based resources.
2. Operational and Employee Advocate Role for HR –
HR managers manage most HR activities in line with the strategies and operations that
have been identified by management and serves as employee champion for employee
issues and concerns. HR often has been viewed as the employee advocate in organizations.
They act as the voice for employee concerns, and spend considerable time on HR crisis
management, dealing with employee problems that are both work-related and not work-
related. Sometimes the HR’s advocate role may create conflict with operating managers.
However, without the HR advocate role, employers could face even more lawsuits and
regulatory complaints than they do now.
The operational role requires HR professionals to cooperate with various departmental and
operating managers and supervisors in order to identify and implement needed programs
and policies in the organization. Operational activities are tactical in nature. Compliance
with equal employment opportunity and other laws is ensured, employment applications
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are processed, current openings are filled through interviews, supervisors are trained,
safety problems are resolved, and wage and benefit questions are answered. For carrying
out these activities HR manager matches HR activities with the strategies of the
organization.
3. Strategic Role for HR -
The administrative role traditionally has been the dominant role for HR. A broader
transformation in HR is needed so that significantly less HR time and fewer HR staffs are
used just for clerical work. Differences between the operational and strategic roles exist in
a number of HR areas. The strategic HR role means that HR professionals are proactive in
addressing business realities and focusing on future business needs, such as strategic
planning, compensation strategies, the performance of HR, and measuring its results.
However, in some organizations, HR often does not play a key role in formulating the
strategies for the organization as a whole; instead it merely carries them out through HR
activities. Many executives, managers, and HR professionals are increasingly seeing the
need for HR management to become a greater strategic contributor to the business success
of organizations. HR should be responsible for knowing what the true cost of human
capital is for an employer. For example, it may cost two times key employees annual
salaries to replace them if they leave. Turnover can be controlled though HR activities, and
if it is successful in saving the company money with good retention and talent
management strategies, those may be important contributions to the bottom line of
organizational performance.
Some examples of areas where strategic contributions can be madeby HR are:
a. Evaluating mergers and acquisitions for organizational compatibility,
structural changes, and staffing needs
b. Conducting workforce planning to anticipate the retirement of employees at all levels and
identify workforce expansion in organizational strategic plans
c. Leading site selection efforts for new facilities or transferring operations to international
outsourcing
d. locations based on workforce needs
e. Instituting HR management systems to reduce administrative time, equipment, and staff by
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using HR technology
f. Working with executives to develop a revised sales
g. compensation and incentives plan as new products
It is the era when for the competitive triumph of the organization there is a need to involve
HRM significantly in an integrated manner, which demands such capabilities from the HR
specialists. The role of HR shifted from a facilitator to a functional peer with competencies
in other functions, and is acknowledged as an equal partner by others. The HR is
motivated to contribute to organizational objectives of profitability and customer
satisfaction, and is seen as a vehicle for realization of quality development. The
department has a responsibility for monitoring employee satisfaction, since it is seen as
substitute to customer satisfaction.
According to this framework, effective organizational change is a complex relationship
between sevenS’s. HRM is a total matching process between the three Hard S’s (Strategy,
Structure and Systems) and the four Soft S’s (Style, Staff, Skills and Super-ordinate
Goals). Clearly, all the S’s have to complement each other and have to be aligned towards
a single corporate vision for the organization to be effective. It has to be realized that most
of the S’s are determined directly or indirectly by the way Human Resources are managed,
and therefore, HRM must be a part of the total business strategy.
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CONCLUSION
It was a wonderful experience for me to prepare a project on Mondelez India Foods Limited
(Formerly Cadbury India Ltd.) that made me learn various aspects of an organization,
areas of concern for an organization, art of not just surviving but proving its potential and
extra caliber at time to time in the Indian corporate sector.
I hope the organization will be benefited from this survey and the organization can improve
its working further more and the overall satisfaction level in the organization might
increase up to the excellent level.
The workers and the staffs of the firm are more satisfied. The data collected are analyzed
scientifically and the results obtained are free to nearly 80%. It is assured that the company
may get high boosted moral in the organization.
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