CHAPTER-I

INTRODUCTION

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HUMAN RESOURCE INFORMATION MANAGEMENT
Definition: A Human Resources Information System is a system that lets you keep track
of all your employees and information about them. It is usually done in a database or,
more often, in a series of inter-related databases. These systems include the employee
name and contact information and all or some of the following:

 department,
 job title,
 grade,
 salary,
 salary history,
 position history,
 supervisor,
 training completed,
 special qualifications,
 ethnicity,
 date of birth,
 disabilities,
 veterans status,
 visa status,
 benefits selected,

They include reporting capabilities. Some systems track applicants before they become
employees and some are interfaced to payroll or other financial systems. The Human
Resource Information System (HRIS) is a software or online solution for the data entry,
data tracking, and data information needs of the Human Resources, payroll, management,
and accounting functions within a business. Normally packaged as a data base, hundreds
of companies sell some form of HRIS and every HRIS has different capabilities. Pick
your HRIS carefully based on the capabilities you need in your company.

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Typically, the better The Human Resource Information Systems (HRIS) provide overall:

 Management of all employee information.

 Reporting and analysis of employee information.
 Company-related documents such as employee handbooks, emergency evacuation
procedures, and safety guidelines.
 Benefits administration including enrollment, status changes, and personal
information updating.
 Complete integration with payroll and other company financial software and
accounting systems.
 Applicant tracking and resume management.

The HRIS that most effectively serves companies tracks:

 attendance and PTO use,

 pay raises and history,
 pay grades and positions held,
 performance development plans,
 training received,
 disciplinary action received,
 personal employee information, and occasionally,
 management and key employee succession plans,
 high potential employee identification, and
 applicant tracking, interviewing, and selection.

An effective HRIS provides information on just about anything the company needs to
track and analyze about employees, former employees, and applicants. Your company
will need to select a Human Resources Information System and customize it to meet your
needs.

With an appropriate HRIS, Human Resources staff enables employees to do their own
benefits updates and address changes, thus freeing HR staff for more strategic functions.
Additionally, data necessary for employee management, knowledge development, career
growth and development, and equal treatment is facilitated. Finally, managers can access

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the information they need to legally, ethically, and effectively support the success of their
reporting employees.

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4
 CHAPTER-II
REVIEW OF LITERATURE

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 REVIEW OF LITERATURE
Human Resource Management System (HRMS) or Human Resource Information
System (HRIS), refers to the systems and processes at the intersection between human
resource management (HRM) and information technology. It merges HRM as a discipline
and in particular its basic HR activities and processes with the information technology
field, whereas the programming of data processing systems evolved into standardized
routines and packages of enterprise resource planning (ERP) software. On the whole,
these ERP systems have their origin on software that integrates information from different
applications into one universal database. The linkage of its financial and human resource
modules through one database is the most important distinction to the individually and
proprietary developed predecessors, which makes this software application both rigid and
flexible.

Purpose

The function of Human Resources departments is generally administrative and common

to all organizations. Organizations may have formalized selection, evaluation, and payroll
processes. Efficient and effective management of "Human Capital" progressed to an
increasingly imperative and complex process. The HR function consists of tracking
existing employee data which traditionally includes personal histories, skills, capabilities,
accomplishments and salary. To reduce the manual workload of these administrative
activities, organizations began to electronically automate many of these processes by
introducing specialized Human Resource Management Systems. HR executives rely on
internal or external IT professionals to develop and maintain an integrated HRMS. Before
the client–server architecture evolved in the late 1980s, many HR automation processes
were relegated to mainframe computers that could handle large amounts of data
transactions. In consequence of the high capital investment necessary to buy or program
proprietary software, these internally-developed HRMS were limited to organizations that
possessed a large amount of capital. The advent of client–server, Application Service
Provider, and Software as a Service SaaS or Human Resource Management Systems
enabled increasingly higher administrative control of such systems. Currently Human
Resource Management Systems encompass:

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 1. Payroll
2. Work Time
3. Benefits Administration
4. HR management Information system
5. Recruiting
6. Training/Learning Management System
7. Performance Record
8. Employee Self-Service

The payroll module automates the pay process by gathering data on employee time and
attendance, calculating various deductions and taxes, and generating periodic pay cheques
and employee tax reports. Data is generally fed from the human resources and time
keeping modules to calculate automatic deposit and manual cheque writing capabilities.
This module can encompass all employee-related transactions as well as integrate with
existing financial management systems.

The work time module gathers standardized time and work related efforts. The most
advanced modules provide broad flexibility in data collection methods, labor distribution
capabilities and data analysis features. Cost analysis and efficiency metrics are the
primary functions.

The benefits administration module provides a system for organizations to administer

and track employee participation in benefits programs. These typically encompass
insurance, compensation, profit sharing and retirement.

The HR management module is a component covering many other HR aspects from

application to retirement. The system records basic demographic and address data,
selection, training and development, capabilities and skills management, compensation
planning records and other related activities. Leading edge systems provide the ability to
"read" applications and enter relevant data to applicable database fields, notify employers
and provide position management and position control. Human resource management
function involves the recruitment, placement, evaluation, compensation and development
of the employees of an organization. Initially, businesses used computer based
information systems to:

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  produce pay checks and payroll reports;
 maintain personnel records;
 pursue Talent Management.

Online recruiting has become one of the primary methods employed by HR departments
to garner potential candidates for available positions within an organization. Talent
Management systems typically encompass:

 analyzing personnel usage within an organization;

 identifying potential applicants;
 recruiting through company-facing listings;
 recruiting through online recruiting sites or publications that market to both
recruiters and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting

within and across general or industry-specific job boards and maintaining a competitive
exposure of availabilities has given rise to the development of a dedicated Applicant
Tracking System, or 'ATS', module.

The training module provides a system for organizations to administer and track
employee training and development efforts. The system, normally called a Learning
Management System if a standalone product, allows HR to track education, qualifications
and skills of the employees, as well as outlining what training courses, books, CDs, web
based learning or materials are available to develop which skills. Courses can then be
offered in date specific sessions, with delegates and training resources being mapped and
managed within the same system. Sophisticated LMS allow managers to approve training,
budgets and calendars alongside performance management and appraisal metrics.

The Employee Self-Service module allows employees to query HR related data and
perform some HR transactions over the system. Employees may query their attendance
record from the system without asking the information from HR personnel. The module
also lets supervisors approve O.T. requests from their subordinates through the system
without overloading the task on HR department.

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Many organizations have gone beyond the traditional functions and developed human
resource management information systems, which support recruitment, selection, hiring,
job placement, performance appraisals, employee benefit analysis, health, safety and
security, while others integrate an outsourced Applicant Tracking System that
encompasses a subset of the above.

Assigning Responsibilities Communication between the Employees.

The International Association for Human Resource Information Management

(IHRIM) is a professional association for information management in human resources
founded in 1980.

External links

 IHRIM home page

Formed when HR and IT professionals found themselves needing mediators, IHRIM is

the only Professional Human Resource Association dedicated to the HRIS and HR
Technology professions. IHRIM is the clearinghouse for the HRIM (Human Resource
Information Management) industry. Today, IHRIM is a community of experts - a
dynamic group of practitioners, vendors, consultants, students, and faculty that continues
to grow.

 Human Resource Information Management Foundation

The Human Resource Information Management (HRIM) Foundation is an independent,

charitable, 501(c)(3) organization chartered with promoting scholarships, research and
education to drive innovation, and the use of technology and information management in
the human resource (HR) profession. One of our recent achievements has been to fund the
development of the only professional certification program designed to solidify and
enhance the HRMS profession - the Human Resource Information Professional (HRIP)
Certification Program.

Future plans include to: • Fund scholarly publications on specific HR and HRIM issues. •
Encourage development of educational programs and course curriculum to advance the
HRIM profession. • Conduct research and development activities related to HRIM and the

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needs of HR systems professionals. For additional information about the HRIM
Foundation’s initiatives or to inquire about donation opportunities,

Human Resource Information Systems (HRIS) have become one of the most important
tools for many businesses. Even the small, 20-person office needs to realize the benefits
of using HRIS to be more efficient. Many firms do not realize how much time and money
they are wasting on manual human resource management (HRM) tasks until they sit
down and inventory their time. HRIS is advancing to become its own information
technology (IT) field. It allows companies to cut costs and offer more information to
employees in a faster and more efficient way. Especially in difficult economic times, it is
critical for companies to become more efficient in every sector of their business; human
resources (HR) is no exception.

HRIS refers to software packages that address HR needs with respect to planning,
employee information access, and employer regulatory compliance. The following text
begins with a discussion of human resource planning, followed by human resource
management systems.

HUMAN RESOURCE PLANNING

American companies must now operate in a rapidly changing business environment.

These changes have important implications for HRM practices. To ensure that
management practices support business needs, organizations must continually monitor
changing environmental conditions and devise HRM strategies for dealing with them. The
procedure used to tie human resource issues to the organization's business needs is called
human resource planning. Also known as HR planning, this procedure is defined as the
"process of identifying and responding to [organizational needs] … and charting new
policies, systems, and programs that will assure effective human resource management
under changing conditions."

The purposes of HR planning are to enable organizations to anticipate their future HRM
needs and to identify practices that will help them to meet those needs. HR planning may
be done on a short- or long-term (three or more years) basis. Its aim is to ensure that
people will be available with the appropriate characteristics and skills when and where
the organization needs them. The use of HR planning enables companies to gain control

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of their future by preparing for likely events. That is, they can anticipate change and
devise appropriate courses of action. When companies learn how to capitalize on future
events, their own future improves.

As valuable as HR planning is, many companies ignore this opportunity. Some see it as
too difficult and frustrating, while others simply do not see the need for it. However,
when failing to properly plan for their human resources, employers are forced to respond
to events after they occur, rather than before; they become reactive, rather than proactive.
When this outcome occurs, an organization may be unable to correctly anticipate an
increase in its future demand for personnel. At best, such a company would be forced to
recruit personnel at the last minute and may fail to find the best candidates. At worst, the
company may become seriously understaffed.

Consequences. For instance, the understaffing could cause existing employees to

experience a great deal of stress as they attempt to meet additional demand without
adequate resources and assistance. If required work is not getting done, the firm
ultimately may experience an increase in back orders, which could cause a decrease in
customer goodwill, an increase in competition, and a loss of market share.

When engaged in human resource planning, a company derives its human resource needs
by first forecasting its demand for human resources (i.e., the number and types of people
needed to carry out the work of the organization at some future point in time), and then its
supply (i.e., the positions that are expected to be already filled). The difference between
the two forecasts signifies the firm's HR needs. For example, if a firm estimates that it
will demand 12 accountants during the next fiscal year and expects to retain its supply of
nine who are already on staff, its HR need would be to hire three additional accountants.
Following is a closer look at how a company can determine its HR needs and devise plans
to meet them.

DEMAND FORECASTING

Demand forecasting involves predicting the number and types of people the organization
will need at some future point in time. There are two general approaches to demand
forecasting: statistical and judgmental. Using a statistical approach, an organization
predicts its needed workforce size on the basis of certain business factors. A business

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factor is an attribute of the business, such as sales volume or market share, which closely
relates to the size of the needed workforce. For example, a hospital could use the business
factor of projected patient load to predict the number of nurses it would need at some
point in time.

A statistical approach to demand forecasting typically is used when an organization

operates in a stable environment, where an appropriate business factor can be predicted
with some degree of certainty. For example, a statistical approach may be appropriate for
a hospital located in an area with little population growth. Organizations operating in less
stable environments (e.g., a hospital in an area experiencing explosive growth and
change) are more likely to rely on a judgmental approach.

STATISTICAL APPROACHES.

The most commonly used statistical methods of demand forecasting are trend, ratio, and
regression analysis. In trend analysis, the future demand for human resources is projected
on the basis of past business trends regarding a business factor. An example of a trend
analysis is illustrated in Exhibit 1, which depicts the relationship between a business
factor (namely, sales volume) and workforce size. As one can see from the exhibit, if the
company expects its 2010 sales to be $10 million, it will need to increase its workforce to
a size of nearly 240, which is the number of employees it had in 2006 when sales were
$10.2 million.

Ratio analysis is the process of determining future HR demand by computing an exact

ratio between the specific business factor and the number of employees needed. It thus
provides a more precise estimate than trend analysis. For instance, the demand for
professors at a university could be forecast on the basis of the student-faculty ratio.
Suppose that a university has 10,000 students and 500 professors; the student-faculty ratio
is thus 10,000:500 or 20:1. This ratio means that for every 20 students, the university
needs 1 professor. If the university anticipates a student enrollment increase of 1,000 for
next year, it would need to hire 50 (1000/20) new professors. This is in addition to any
hiring needed to fill vacancies from existing faculty who might leave in the meantime.

Regression analysis is similar to both trend and ratio analyses in that forecasts are based
on the relationship between a business factor and workforce size. However, this method is

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more statistically sophisticated. Using statistical software, the analyst first creates a
scatter diagram depicting the relationship between the business factor and workforce size.
The software can then calculate a regression line, which cuts right through the center of
the points on the scatter diagram. (The regression line is mathematically determined using
a formula found in most statistical texts.) By inspecting values along the regression line,
one can see how many employees are needed at each value of the business factor. Both
ratio analysis and regression analysis are aspects of human resource management systems
(HRMS) packages, and therefore provide the business with the capabilities to calculate
more accurate and timely forecasts.

An example of how regression analysis can be used to project HR demand is shown in

Exhibit 2. In this example, the figures used in the trend analysis (Exhibit 1) are now
depicted in the form of a scatter diagram. The line running through the center of the
points plotted on the scatter diagram is the regression line. To determine the number of
employees needed when the sales volume is $10 million, one would follow the path
indicated by the dashed line. One would start at the point on the X axis reading "10,000,"
and then move up vertically until reaching the regression line. The value on the Y axis
corresponding to that point (i.e., 230) reflects the needed workforce size.

Statistical methods of demand forecasting assume that the relationship between workforce
size and the business factor remains constant over time. If this relationship were to
change unexpectedly, the forecast would become inaccurate. For example, the forecast of
needed professors based on the student-faculty ratio would be inaccurate if the university
decided to change its teaching approach and institute distance learning classes. This
approach to teaching involves the use of video equipment, which can beam the professor's
lectures to many different locations, thus allowing many more students to enroll in the
class. Consequently, the 20:1 ratio would no longer apply; the university would now be
able to function with fewer professors (or at least more students per professor).

JUDGMENTAL APPROACHES.

Judgmental approaches to demand forecasting involve the use of human judgment, rather
than a manipulation of numbers. Two of the most commonly used judgmental techniques
are group brainstorming and sales force estimates. The group brainstorming technique of
demand forecasting uses a panel of experts (i.e., people within the organization who

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collectively understand the market, the industry, and the technological developments
bearing on HRM needs). These experts are asked to generate a forecast through the
process of brainstorming. A variety of brainstorming techniques exist. Most involve a
face-to-face discussion among group members, who are asked to reach a consensus.

When using a group brainstorming technique to forecast human resources demand,

participants must make certain assumptions regarding the future. That is, they must
examine the firm's strategic plans for developing new products or services, expanding to
new markets, and so forth, and then try to predict such things as:

 Future marketplace demands for the organization's products and services

 The percentage of the market that the organization will serve
 The availability and nature of new technologies that may affect the amounts and
types of products or services that can be offered

The accuracy of the forecasts depends on the correctness of these assumptions. Of course,
the future is very difficult to predict because it is subject to many uncertainties. Therefore,
the organization must continually monitor its demand forecasts in light of any unexpected
changes. HRMS packages facilitate the calculation and monitoring of demand forecasts.

The use of sales force estimates represents another judgmental approach for forecasting
HR demand. This approach is most appropriately used when the need for additional
employees arises from the introduction of new products. When a new product is
launched, sales personnel are asked to estimate the demand for the product (i.e., expected
sales volume) based on their knowledge of customer needs and interests. The
organization then uses this information to estimate how many employees will be needed
to meet this demand. One drawback of this approach is the possibility of bias. Some sales
personnel may purposely underestimate product demands so they will look good when
their own sales exceed the forecasts. Others may overestimate demand because they are
overly optimistic about their sales potential.

SUPPLY FORECASTING

Once a demand forecast has been made, an organization has a relatively good idea of the
number and nature of positions it will need to carry out its work at a particular point in

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time. It then estimates which of these positions will be filled at that time by individuals
who already are employed by the company. The process used to make this estimation is
called supply forecasting.

Supply forecasting is a two-step process. HRMS packages provide the employer with the
means to automate much of these two steps. In the first step, the organization groups its
positions by title, function, and responsibility level. These groupings should reflect levels
of positions across which employees may be expected to advance. For instance, the HRM
group might include the job titles of HR assistant, HR manager, and HR director. The
secretarial group might include secretarial clerk, principal secretary, senior secretary, and
administrative assistant.

The second step of supply forecasting is to estimate, within each job group, how many
current employees will remain in their positions during the planning period, how many
will move to another position (e.g., through transfer, promotion, or demotion), and how
many will leave the organization. These predictions are partially based on past mobility
trends (e.g., turnover and promotion rates). The organization also should consider any
plans for mergers, acquisitions, unit or division divestitures, layoffs, retrenchments and
downsizing, and even hostile takeovers. When making its supply forecast, the
organization also should look at specific individuals. Some may have already announced,
for instance, that they are retiring at the end of the year, returning to school in the fall, or
getting married and planning on moving to a different part of the country.

Computerized statistical packages are available to help estimate the flow of employees
through an organization. The estimates generated by these packages can be fairly accurate
in stable environments. When the environment is unstable, of course, these estimates are
suspect. For instance, an organization may base its estimates on past turnover rates, which
have been about 10 percent during each of the past five years. If the turnover rate were to
change drastically because of factors such as job dissatisfaction or down-sizing, the
organization would severely underestimate its future staffing needs.

ESTIMATING FUTURE HUMAN RESOURCE NEEDS

Combining the results of the supply and demand forecasts within each job group derives
specific staffing needs. For example, consider a firm that currently employs twenty-five

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secretaries. As the result of its supply forecast, the firm predicts that five of these
secretarial positions will become vacant by the end of the planning period because of
retirements, promotions, and so forth. Its demand forecast predicts that three new
secretarial positions will be needed during the coming period because of an increased
demand for the company's product. By combining these two estimates, the firm now
realizes that it must hire eight new secretaries (five to replace those expected to vacate
their positions, plus three to fill the newly created positions).

OUTCOMES OF THE HR PLANNING PROCESS

When the HR planning process is completed, a firm must establish and implement HRM
practices in order to meet its human resource needs. Following is a brief overview of how
HRM practices can help organizations to deal with anticipated oversupplies and
undersupplies of personnel.

The trend toward organizational restructuring usually results in a smaller workforce.

Therefore, when an organization's strategic plan calls for restructuring, the HRM response
usually is one of downsizing. Downsizing usually results in layoffs. Because of the
negative outcomes that are often associated with layoffs, employers are encouraged to
seek alternatives, such as hiring freezes, early retirements, restricted overtime, job
sharing, and pay reductions.

When the results of demand and supply forecasting project an undersupply of personnel
at some future point in time, the organization must decide how to resolve this problem.
The solution may involve hiring additional staff, but there are other options. When HR
plans indicate an undersupply of employees, firms can recruit personnel to staff jobs with
anticipated vacancies. HRMS packages provide employers with capabilities to carry out
recruitment in all of its steps. The first step is to conduct a job analysis to determine the
qualifications needed for each vacant job.

The next step is to determine where and how to recruit the needed individuals. For
instance, a company must decide whether to fill its vacancies externally (i.e., from the
external labor market) or internally (i.e., from its own current workforce). When
recruiting externally, an organization should first assess its attractiveness in the eyes of
potential applicants; unattractive employers may have trouble generating a sufficiently

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large applicant pool. Such employers should attempt to increase the number of people
who are attracted to the organization and thus interested in applying for a job there. This
may be accomplished by increasing starting pay levels and/or improving benefit
packages. Another option is to target certain protected groups whose members may be
underemployed in the local labor market, such as older, disabled, or foreign-born
individuals.

Internal recruitment efforts can be improved through the use of career development
programs. When designing such a program, the organization should collect work history
and skill level information on each of its employees. Such information would include age,
education level, training, special skills (e.g., foreign language spoken), and promotion
record, and should be stored on a computer. This employee information allows the
organization to identify current employees who are qualified to assume jobs with greater
responsibility levels. For instance, in departments where skilled managers are in short
supply, a management replacement chart can be prepared that lists present managers,
proposes likely replacements, and gives an estimate of when the replacement candidate
will be trained and available to fill an open position.

Instead of hiring new workers to meet increasing demands, an organization may decide to
improve the productivity of the existing workforce through additional training. Other
options include the use of overtime, additional shifts, job reassignments, and temporary
workers. Another option is to improve retention rates. When this aim is met, firms will
have fewer job vacancies to fill.

Retention rates can be improved at the outset of the employer/employee relationship,

when applicants are first recruited. Retention rates are likely to improve when applicants
are given a realistic preview of what their jobs would actually be like (warts and all),
rather than an overly glowing one.

Workers want to feel valued and needed by their organization. In a climate characterized
by mergers, acquisitions, and layoffs, many workers feel very insecure about their jobs.
Employees with such feelings often begin shopping around for other jobs. These fears can
be eased by implementing HR plans for training and cross-training. Such plans allow
workers to perform a variety of functions, thus ensuring that they have the necessary
skills to continue making contributions to the firm. Management training also is crucial in

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this regard. Organizations must train managers to be good supervisors. Poor "people
management" is a primary cause of voluntary turnover. Managers at all levels should
know what is expected of them, in terms of managing people instead of just managing
budgets.

Companies also can improve retention rates by creating a work environment that
encourages employees to participate actively in the company's total welfare. Workers
want recognition for their contributions to organizational progress, but this recognition
must be tailored to the workers' individual needs. While some workers may be motivated
by monetary rewards, others seek recognition by peers and managers, feelings of
accomplishment, or job satisfaction.

Workers now demand more flexible schedules to best fit their lifestyles. Organizations
can improve retention rates by implementing programs to accommodate these needs, such
as job sharing, shortened workweeks, and telecommuting via computer and modem.

Finally, companies also can improve retention rates by offering attractive benefit
packages, such as generous retirement plans, stock ownership, health and dental
insurance, and employee discount programs. Many firms are now offering "cafeteria
plan" benefit packages, which are tailored to the specific needs of each of their
employees.

HUMAN RESOURCE
MANAGEMENT SYSTEMS

Several major software companies provide HRMS packages. SAP, PeoleSoft, Oracle, and
ADP are the largest. Depending on the company's needs and size, package options may
include some or all of the following services:

 Employee career cycle management

 24/7 data access to authorized managers
 Customized levels of access to confidential data
 Pre-populated forms and templates
 Access to real-time data—with instantaneous updates
 Employee administration

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  Benefits administration
 Compliance
 Recruitment
 Performance and development
 Safety and health
 Succession planning
 Time-off management
 Organization management
 Payroll
 Training
 401k plan administration

The opportunities to add more services are endless and continue to improve.

For most companies, the hardware and software needed to run these programs are fairly
standard. Hardware and software is dependent on the complexity of the HRMS package;
more complex HRMS packages require more hardware (e.g., server space and speed).

HRMS technology costs vary considerably, depending on the size of the company and its
HR needs. Costs for deploying a comprehensive HRMS package include license fees,
implementation, technology, training, and maintenance. Costs typically range from $300
to $700 per employee as an initial investment for companies with more than 1,000
employees. Smaller companies may decide it is better to rent the application than buy it.
Research has found that most companies can recoup HRMS costs within three years of
system launch, based on process efficiencies alone.

The value of HRMS results from a reduction in HR support costs, based on efficiency
improvements. "Hackett's benchmark for the average annual cost of HR services per
employee is approximately $1,900, with a best practice goal of less than $1,200"
(Hamerman). By eliminating paper and process inefficiencies, companies can expect
additional cost reductions while improving service and becoming more efficient. There
are many other benefits of HRMS. Giga Information Group believes that HR departments
can reduce time spent on administrative work by 40 percent to 50 percent, resulting in
either the elimination of headcount or the redeployment of effort to higher value tasks,
such as decision support and employee development.

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Another benefit of HRMS includes allowing HR to transition from an administrative
department to a strategic management department. The strategic value aspect of the
HRMS investment focuses on managing human capital by supporting functions such as
recruitment, performance/competency management, employee development, and
employee customer service. By executing well in these areas, companies can reduce
employee turnover, reduce hiring costs, and improve individual performance.

ADP offers a comprehensive suite of software that can run on almost all modern
operating systems. A major player in the HRMS business is PeopleSoft. Acquired by
Oracle Corp. in January 2005, PeopleSoft puts it focus on one complete HRM product
line. This suite not only works in the HRM arena, it also allows employers to buy
modules for CRM, SCM, and many other areas. There are three versions of the company's
Enterprise suite: Enterprise, EnterpriseOne, and PeopleSoft World.

According to PeopleSoft, the Enterprise program is designed with the Internet in mind,
and allows employers to:

 Plan the workforce needed to carry out an organization's business objectives,

attract the right people, and provide them with the tools they need to be
productive.
 Assess workforce skills and design learning and performance programs that
develop people in alignment with their career paths and corporate objectives.
 Optimize a global workforce by putting the right people in the right jobs at the
right time. This includes tracking the workforce and monitoring performance.
 Plan compensation and reward structures that align the workforce with corporate
objectives. This includes linking the right employees with the right types of
compensation, and rewarding them with a total package that maximizes
efficiency, reduces costs, and increases overall performance.

EnterpriseOne works with the original Enterprise program and also let employers:

 Maintain a database of employee skill sets and competencies, as well as

information about outside applicants.
 Track approved positions and headcount by company and department.

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  Track recruitment data, such as where a company is finding employees, how long
they stay, qualifications, and recruitment costs.
 Simplifying the employee evaluation process through automated workflow, which
automatically alerts employees and managers about scheduled performance
reviews.
 Helping managers to understand discrepancies between employees' expected and
actual performance through built-in competency gap analysis tools.
 Providing true exception reporting with flexible reporting tools that summarize
data, embed workflow messaging, and populate spreadsheets.

Finally, PeopleSoft's PeopleSoft World program was developed to help small businesses
cope with the cost of changing hardware; it is built to work with the IBM iSeries.
According to PeopleSoft, this system offers:

 Flexible and affordable pricing. Pre-integrated applications optimized on an IBM

iSeries means lower implementation costs and ongoing IT needs. At the same
time, users get a flexible architecture that enables them to tailor menus, security,
and reporting to the specific needs of their business without costly modifications.
 Self-service capabilities: Web browser-based access to applications enables
employees, customers, and suppliers to access relevant information quickly and
easily, with less training.
 Full, robust solution: PeopleSoft World is a comprehensive, but low-maintenance
solution for small businesses. It offers the same functionality available to larger
enterprises, not a stripped-down version of a larger solution. It supports
multicurrency, multi-language, and multi-company requirements and provides
integration with other key PeopleSoft technologies.

All PeopleSoft Software is built on a Web-based platform, enabling "portal" technology.

For both Enterprise and EnterpriseOne, portals are available to connect with employees
over the Web. Technology continues to evolve, and HR is no exception. One of the fastest
growing trends in HRMS is Web-based training/e-learning. E-learning tends to be far
more affordable than classroom learning, and a higher degree of focus results in time
savings. Not all e-learning is the same: some courses are self-paced with tutors available,
some are instructor-led in real time, and some allow for student interaction.

21
Another HRMS trend is the use of online surveys. This allows companies to get fast
information on their employees, policies, procedures, competition, and anything else they
decide to survey. This also gives employees a sense of belonging and contributing to their
company. Online employee surveys usually have an 80 percent return ratio, which is
much higher than paper surveys.

Employees are becoming more self sufficient in the workplace because of HRMS and the
growth of technology. They are able to answer questions, down-load forms, enroll in
benefits, change payroll options, and complete training on their own. This saves both time
and money. An employee does not have to make several phone calls in order to speak
with the one person who knows the answer to their questions. Answers are readily
available, usually on the company intranet. This also frees up HR to focus on more
profitable activities for the company, such as recruiting and employee development.

Another growing trend includes improved methods for monitoring and managing
employees' use of the Internet. This helps management to improve productivity, reduce
legal liabilities, and control IT costs. Companies are blocking e-mail that may be
offensive in order to reduce legal liabilities. They also are blocking Web sites that are
inappropriate for workplace viewing. This has improved productivity by reducing non-
productive activities.

HRMS providers have products for companies of all sizes. These providers profit by
maximizing the services they offer. Therefore, they are going to target large companies
that need more support. However, providers are still interested in small companies, and
those that will need more support as they grow.

As the need for corporate cost-cutting, efficiency, and productivity becomes more
important, the HRMS industry is going to continue to have strong growth potential. Not
only can HRMS help with employee administration from recruiting to benefits, it can
save companies thousands of dollars by lowering workforce and employee turnover
levels. By 2005, the corporate world had only seen the beginning potential of HRMS.

Human Resources Management (HRM) is the attraction, selection, retention,

development, and utilization of labor resource in order to achieve both individual and

22
organizational objectives. Human Resources Information Systems (HRIS) is an
integration of HRM and Information Systems (IS). HRIS or Human resource Information
system helps HR managers perform HR functions in a more effective and systematic way
using technology. It is the system used to acquire, store, manipulate, analyze, retrieve,
and distribute pertinent information regarding an organization's human resources. A
human resource information system (HRIS) is a system used to acquire, store,
manipulate, analyze, retrieve, and distribute pertinent information about an organization's
human resources (Tannenbaum, 1990). The HRIS system is usually a part of the
organization's larger management information system (MIS) which would include
accounting, production, and marketing functions, to name just a few. Human resource and
line managers require good human resource information to facilitate decision-making. An
extensive study by Towers Perrin study revealed the following benefits of

Application of HRIS

HRIS can be applied in the following areas of HRM

 HR planning
 Succession planning
 Work force planning
 Work force dynamics analysis
 Staffing
 Applicant recruitment and tracking
 Employee data base development
 Performance management
 Learning and development
 Compensation and benefits
 Pay roll
 Job evaluation
 Salary survey
 Salary planning
 International compensation
 Benefits management
 Develop innovative Org. Structure
 Develop IT

23
HRIS Benefits:

HRIS has showed many benefits to the HR operations. A few of them can be detailed as;

o Faster information process,

o Greater information accuracy,
o Improved planning and program development, and
o Enhanced employee communications (Overman, 1992).

Barriers to the success of an HRIS:

o Lack of management commitment

o Satisfaction with the status quo
o No or poorly done needs analysis
o Failure to include key people
o Failure to keep project team intact
o Politics / hidden agendas
o Failure to involve / consult significant groups
o Lack of communication
o Bad timing (time of year and duration

HRIS software:

 Abra Suite: for human resources and payroll management

 ABS (Atlas Business Solutions): General Information, Wages
information, emergency information, Reminders, Evaluators, Notes
customer information, Documents and photos, Separation
information.
 CORT: HRMS: applicant tracking, Attendance tracking and
calendars, Wage information, Skills tracking, Reports-to
information, Status tracking, Job history tracking, Cost center
tracking,

Reviews and tracking, Mass update and change tools etc.

24
 HRSOFT: Identify and track senior managers, Assess management
skills and talents, Generate a wide range of reports, resumes,
employee profiles, replacement tables and succession analysis
reports, Identify individuals for promotion, skills shortages,
unexpected vacancy, Discover talent deep, Competency
Management, career development, align succession plans etc.
 Human Resource MicroSystems: sophisticated data collection
and reporting, flexible spending accounts, compensation,
employment history, time off, EEO, qualifications,
Applicant/Requisition Tracking, Position Control/Succession
Planning, Training Administration, Organization Charts, HRIS-Pro
Net (employee/managerial self-service), HR Automation
(eNotification and eScheduler), and Performance Pro (performance
management)
 ORACLE- HRMS: Oracle iRecruitment, Oracle Self-Service
Human Resources, Payroll, HR Intelligence, Oracle Learning
Management, Oracle Time and Labor
 PEOPLESOFT: Enterprise eRecruit, Enterprise Resume
Processing, Enterprise Services Procurement, Workforce Planning,
Warehouse
 SAP HR: Human Capital Management (HCM) for Business, All-
in-One: Rapid HR,
 SPECTRUM HR: iVantage® and HRVantage®. iVantage is a
Web-based HRIS product designed for organizations with up to
10,000 employees.
 VANTAGE: HRA: 'Point-and-Click' report writing, internal
Messaging System for leaving reminders to yourself, to someone
else or to everyone using HRA - very useful for Benefit
Applications, Disciplinary Actions, Special Events, Employee
Summary Screen for Basic, Leave (Absenteeism) and
Salary/Position History, skills & training module, Leave Tracking
Module


25
Critical Analysis

Although almost all HR managers understand the importance of HRIS, the general
perception is that the organization can do without its implantation. Hence only large
companies have started using HRIS to complement its HR activities.

But HRIS would be very critical for organizations in the near future. This is because of a
number of reasons.

 Large amount of data and information to be processed.

 Project based work environment.
 Employee empowerment.
 Increase of knowledge workers & associated information.
 Learning organization

The primary reason for delay in HRIS implementation in organizations is because of the
fear psychosis created by "technology" and "IT" in the minds of senior management.
They may not be very tech savvy and fear being left out.

But trends are changing for the better as more and more organizations realize the
importance of IT and technology. Major HRIS providers are concentrating on the small
and middle range organizations as well as large organizations for their products. They are
also coming up with very specific software modules, which would cater to any of their
HR needs. SAP and Peoplesoft provide HR modules within their business intelligence
software. Hence HRIS would soon be an integral part of HR activities in all organization.

26
OBJECTIVES OF THE STUDY:
The primary purpose of an HRIS is the application of technology for enhancing the
efficiency of human resource management.
HRIS is used for data storage and report generation, while some others may use it for
decision alternatives’ generation, decision making, and even for simulation.

Hence the underlying objectives are

 Make a study in prevailing HRIS.
 To identify Accuracy of Employee data.
 To make the required changes in SAP.
 Identify the Mistakes of Employee’s data and Update the same in SAP.
 To identify the “Data Needed” and suggest the same to the organization.

NEED FOR THE STUDY

Our study HRIS helps the organization to follow systematic way of collecting
data & information of each employee to aid planning, decision –making and
submitting of returns & reports to the external agencies.
This collected information about the personnel (information about the employee)
will be helpful in solving the employees problems and organization problems
.HRIS maintains the data related to the employee’s personal profile, career
profile, skill profile & benefit profile, which would help in their growth.
Our study HR Information system also maintains the data related to the
personnel identification i.e. The employee code to recognize every individual
with their employee codes.
HRIS also includes managing the salary discrepancies of employees. Some
modifications are done in order to rectify the salary discrepancies of the
employees.

27
SCOPE OF THE STUDY:

To prepare Human Resource Information system, we can collect the information from the
HR department and partially from employees also.
Because of the security regions the company is much confidential about the information
of the employees in organization.

 Employees should be motivated to give their information taken.

 Top management should trust the employees that after making huge effort to take
the information of employees, employees will work for the well being of
organization and for human being also.
 Top management’s philosophy should be clear towards Human Resource
information system and its well being to encourage the employees.
 Management and Managers need to give equal importance.
 Employees must be feeling of belongingness among the employees, and also
willingness to give the information.

The involvement and participation of both the administration and the executives
in bringing about desired betterment both in daily routine and procedure
assessment by adopting a new outlook , attitudes and practices of executive
business.

RESEARCH METHODOLOGY

The present study has been conducted in HERITAGE INDIA LTD situated at
Hyderabad. The online Interviews are conducted through a properly designed
questionnaire constitute the primary source of data for the study.

Unit of study

Two instruments are used ; the first one is the management schedule to
gather information from management on different angles of organization.

28
The second one intended to administer among the sample.

Research & Design

1. Research method : Survey

2. Data collection Method :

 Primary source : Structured closed ended questionnaire

 Secondary source : Company brochures , records , magazines

(REINFOREC),

journals , Internet.

 Research Instrument : Personal Interview with aid

 Sampling plan : Size 100

 Procedure : simple random sampling

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LIMITATIONS OF HRIS

While the computerized Human Resource Information System, described

Earlier, has many benefits, it also has many problems, which need to
be addresses to before it can really be useful. Some of them are
described below.

(a) It can be expensive in terms of finance and manpower requirements.

(b) Often the personnel designing HRIS do not have a thorough

Understanding of what constitutes quality information for the users
Thus, The user managers do not get exactly the reports , which they
Want Producing information that is of quality to the users requires an
investment in time , effort and communication on the part of HRIS
managers.

(c) Computers cannot substitute human beings. Human intervention will

Always be necessary. Computers can at best aid the human effort. The
Quality of response is dependent upon the accuracy of data input and
Quires fired. The ‘Garbage-in Garbage-out ’ is the key expression in any
Computerized system.

(d) In many organizations , the system is operated in batch mode with

the records being updated once a week. Online facility in multi-
Environmental needs to be developed so that the reports generated are
not out of place with the realities.

30
 CHAPTER- III
INDUSTRIAL PROFILE
&
COMPANY PROFILE

31
Retailing in India is one of the pillars of its economy and accounts for 16 to 18 percent
of its GDP. India is the 5th largest retail market in the world. The country ranks fourth
among the surveyed 30 countries in terms of global retail development. The current
market size of Indian retail industry is about US$ 520 bn (Source: IBEF). Retail growth
of 14% to 15% per year is expected through 2015. By 2018, the Indian retail sector is
likely to grow at a CAGR of 13% to reach a size of US$ 950 bn. Retailing has played a
major role the world over in increasing productivity across a wide range of consumer
goods and services. In the developed countries, the organised retail industry accounts for
almost 80% of the total retail trade. In contrast, in India organised retail trade accounts for
merely 8-10% of the total retail trade. This highlights a lot of scope for further penetration
of organized retail in India.

The sector can be broadly divided into two segments: Value retailing, which is typically a
low margin-high volume business (primarily food and groceries) and Lifestyle retailing, a
high margin-low volume business (apparel, footwear, etc). The sector is further divided
into various categories, depending on the types of products offered. Food dominates
market consumption with 60% share followed by fashion. The relatively low contribution
of other categories indicates opportunity for organised retail growth in these segments,
especially with India being one of the world's youngest markets.

Transition from traditional retail to organised retail is taking place due to changing
consumer expectations, growing middle class, higher disposable income, preference for
luxury goods, and change in the demographic mix, etc. The convenience of shopping with
multiplicity of choice under one roof (Shop-in-Shop), and the increase of mall culture etc.
are factors appreciated by the new generation. These factors are expected to drive
organized retail growth in India over the long run.

During FY14, the economic backdrop was a key factor impacting the performance of
retail companies across various sub sectors, including that of organized retail. Consumer
sentiment and business confidence continued to be subdued during the year with
economic growth decelerating further. This is attributable mainly to weakening industrial
growth in the context of tight monetary policy followed by the RBI through most of the
year, political & policy stability related concerns and uncertainty in the global economy.

Inflation also was an important concern area. Persistent high inflation and inflation
expectations meant that the RBI was compelled to maintain the benchmark interest rates

32
at a much higher level than what would be needed to encourage business and economic
sentiment. In the recent quarters consumer sentiment has been varied-with apparel
retailers reporting an improving trend but most other retail formats still witnessing muted
off take.

Growth of Indian Retail

According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney,
India retail industry is the most promising emerging market for investment. In 2007, the
retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the
country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.

According to a report by North bride Capita, the India retail industry is expected to grow
to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the
total market share. It can be mentioned here that, the share of organized sector in 2007
was 7.5% of the total retail market.

Major Retailers in India

Pantaloon:
Pantaloon is one of the biggest retailers in India with more than 450 stores across the
country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located
across the country. It's growing at an enviable pace and is expected to reach 30 million sq.
ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket ‘Big
Bazaar’. It has the following retail segments:

 Food & Grocery: Big Bazaar, Food Bazaar

 Home Solutions: Hometown, Furniture Bazaar, Collection-i
 Consumer Electronics: e-zone
 Shoes: Shoe Factory
 Books, Music & Gifts: Depot
 Health & Beauty Care: Star, Sitara
 E-tailing: Futurebazaar.com
 Entertainment: Bowling Co.

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Tata Group

Tata group is another major player in Indian retail industry with its subsidiary Trent,
which operates Westside and Star India Bazaar. Established in 1998, it also acquired the
largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft
retail space across the country.

RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when it came into
food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the
pharmacy and beauty care outlets ‘Health & Glow’.
Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting
its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis
Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in
other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

Retail formats in India

Hypermarts/supermarkets: large self-servicing outlets offering products from a variety of

categories.

 Mom-and-pop stores: they are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.
 Departmental stores: are general retail merchandisers offering quality products
and services.
 Convenience stores: are located in residential areas with slightly higher prices
goods due to the convenience offered.

34
  Shopping malls: the biggest form of retail in India, malls offers customers a mix
of all types of products and services including entertainment and food under a
single roof.
 E-trailers: are retailers providing online buying and selling of products and
services.
 Discount stores: these are factory outlets that give discount on the MRP.
 Vending: it is a relatively new entry, in the retail sector. Here beverages, snacks
and other small items can be bought via vending machine.
 Category killers: small specialty stores that offer a variety of categories. They are
known as category killers as they focus on specific categories, such as electronics
and sporting goods. This is also known as Multi Brand Outlets or MBO's.
 Specialty stores: are retail chains dealing in specific categories and provide deep
assortment. Mumbai's Crossword Book Store and RPG's Music World are a
couple of examples.

Challenges facing Indian retail industry

 The tax structure in India favors small retail business

 Lack of adequate infrastructure facilities
 High cost of real estate
 Dissimilarity in consumer groups
 Restrictions in Foreign Direct Investment
 Shortage of retail study options
 Shortage of trained manpower
 Low retail management skill

The Future
The retail industry in India is currently growing at a great pace and is expected to go up to
US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the
year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer
spending has also gone up and is also expected to go up further in the future. In the last
four year, the consumer spending in India climbed up to 75%. As a result, the India retail

35
industry is expected to grow further in the future days. By the year 2013, the organized
sector is also expected to grow at a CAGR of 40%.

Retail consists of the sale of goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct
consumption by the purchaser. Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys
goods or products in large quantities from manufacturers or importers, either directly or
through a wholesaler, and then sells smaller quantities to the end-user. Retail
establishments are often called shops or stores. Retailers are at the end of the supply
chain. Manufacturing marketers see the process of retailing as a necessary part of their
overall distribution audit. The term "retailer" is also applied where a service provider
services the needs of a large number of individuals, such as a public utility, like electric
power.

Shops may be on residential streets, shopping streets with few or no houses or in a

shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping
street has a partial or full roof to protect customers from precipitation. Online retailing, a
type of electronic commerce used for business-to-consumer (B2C) transactions and mail
order, are forms of non-shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.

Etymology

Retail comes from the French word retailler, which refers to "cutting off my hands, clip
and divide" in terms of tailoring (1365). It first was recorded as a noun with the meaning
of a "sale in small quantities" in 1433 (French). Its literal meaning for retail was to "cut
off, shred, off my toes paring". Like the French, the word retail in both Dutch and

36
German (detailhandel and Einzelhandel respectively), also refers to the sale of small
quantities of items.

Types of retail outlets

A marketplace is a location where goods and services are exchanged. The traditional
market square is a city square where traders set up stalls and buyers browse the
merchandise. This kind of market is very old, and countless such markets are still in
operation around the whole world.

In some parts of the world, the retail business is still dominated by small family-run
stores, but this market is increasingly being taken over by large retail chains.

Retail is usually classified by type of products as follows:

 Food products
 Hard goods ("hardline retailers") - appliances, electronics, furniture, sporting
goods, etc.
 Soft goods - clothing, apparel, and other fabrics.

There are the following types of retailers by marketing audit:

 Department stores - very large stores offering a huge assortment of "soft" and
"hard goods; often bear a resemblance to a collection of specialty stores. A retailer
of such store carries variety of categories and has broad assortment at average
price. They offer considerable customer service.
 Discount stores - tend to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at affordable
and cut-rate prices. Normally retailers sell less fashion-oriented brands. However
the service is inadequate.;
 General merchandise store - a hybrid between a department store and discount
store;
 Supermarkets - sell mostly food products;
 Warehouse stores - warehouses that offer low-cost, often high-quantity goods
piled on pallets or steel shelves; warehouse clubs charge a membership fee;

37
 Variety stores or "dollar stores" - these offer extremely low-cost goods, with
limited selection;
 Demographic - retailers that aim at one particular segment (e.g., high-end retailers
focusing on wealthy individuals).
 Mom-And-Pop or Kirana Stores: is a retail outlet that is owned and operated by
individuals. The range of products are very selective and few in numbers. These
stores are seen in local community often are family-run businesses. The square
feet area of the store depends on the store holder.
 Specialty Stores: A typical specialty store gives attention to a particular category
and provides high level of service to the customers. A pet store that specializes in
selling dog food would be regarded as a specialty store. However, branded stores
also come under this format. For example if a customer visits a Reebok or Gap
store then they find just Reebok and Gap products in the respective stores.
 Convenience Stores: is essentially found in residential areas. They provide limited
amount of merchandise at more than average prices with a speedy checkout. This
store is ideal for emergency and immediate purchases.
 Hypermarkets: provides variety and huge volumes of exclusive merchandise at
low margins. The operating cost is comparatively less than other retail formats. A
classic example is the Metro™ in Bangalore.
 Supermarkets: is a self service store consisting mainly of grocery and limited
products on non food items. They may adopt a Hi-Lo or an EDLP audit for
pricing. The supermarkets can be anywhere between 20,000-40,000 square feet.
Example: SPAR™ supermarket.
 Malls: has a range of retail shops at a single outlet. They endow with products,
food and entertainment under a roof. Example: Sigma mall and Garuda mall in
Bangalore, Express Avenue in Chennai.
 Category Killers or Category Specialist: By supplying wide assortment in a single
category for lower prices a retailer can "kill" that category for other retailers. For
few categories, such as electronics, the products are displayed at the centre of the
store and sales person will be available to address customer queries and give
suggestions when required. Other retail format stores are forced to reduce the
prices if a category specialist retail store is present in the vicinity. For example:
Pai Electronics™ store in Bangalore, Tata Croma.

38
  E-tailers: The customer can shop and order through internet and the merchandise
are dropped at the customer's doorstep. Here the retailers use drop shipping
technique. They accept the payment for the product but the customer receives the
product directly from the manufacturer or a wholesaler. This format is ideal for
customers who do not want to travel to retail stores and are interested in home
shopping. However it is important for the customer to be wary about defective
products and non secure credit card transaction. Example: Amazon and Ebay.
 Vending Machines: This is an automated piece of equipment wherein customers
can drop in the money in machine and acquire the products. For example: Soft
drinks vending at Bangalore Airport.

Some stores take a no frills approach, while others are "mid-range" or "high end",
depending on what income level they target.

Other types of retail store include:

 Automated Retail stores are self service, robotic kiosks located in airports, malls
and grocery stores. The stores accept credit cards and are usually open 24/7.
Examples include ZoomShops and Redbox.
 Big-box stores encompass larger department, discount, general merchandise, and
warehouse stores.
 Convenience store - a small store often with extended hours, stocking everyday or
roadside items;
 General store - a store which sells most goods needed, typically in a rural area;

Retailers can opt for a format as each provides different retail mix to its customers based
on their customer demographics, lifestyle and purchase behaviour. A good format will
lend a hand to display products well and entice the target customers to spawn sales.

Retail pricing

The pricing technique used by most retailers is cost-plus pricing. This involves adding a
markup amount (or percentage) to the retailer's cost. Another common technique is

39
suggested retail pricing. This simply involves charging the amount suggested by the
manufacturer and usually printed on the product by the manufacturer.

In Western countries, retail prices are often called psychological prices or odd prices.
Often prices are fixed and displayed on signs or labels. Alternatively, when prices are not
clearly displayed, there can be price discrimination, where the sale price is dependent
upon who the customer is. For example, a customer may have to pay more if the seller
determines that he or she is willing and/or able to. Another example would be the practice
of discounting for youths, students, or senior citizens.

Transfer mechanism

There are several ways in which consumers can receive goods from a retailer:

 Counter service, where goods are out of reach of buyers and must be obtained
from the seller. This type of retail is common for small expensive items (e.g.
jewelry) and controlled items like medicine and liquor. It was common before the
1900s in the United States and is more common in certain countries.
 Delivery (commerce), where goods are shipped directly to consumer's homes or
workplaces. Mail order from a printed catalog was invented in 1744 and was
common in the late 19th and early 20th centuries. Ordering by telephone is now
common, either from a catalog, newspaper, television advertisement or a local
restaurant menu, for immediate service (especially for pizza delivery). Direct
marketing, including telemarketing and television shopping channels, are also
used to generate telephone orders. Online shopping started gaining significant
market share in developed countries in the 2000s.
 Door-to-door sales, where the salesperson sometimes travels with the goods for
sale.
 Self-service, where goods may be handled and examined prior to purchase, has
become more common since the 1920s.

Second hand retail

Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates
goods to the shop to be sold. In give-away shops goods can be taken for free.

40
Another form is the pawnshop, in which goods are sold that were used as collateral for
loans. There are also "consignment" shops, which are where a person can place an item in
a store and if it sells, the person gives the shop owner a percentage of the sale price. The
advantage of selling an item this way is that the established shop gives the item exposure
to more potential buyers.

Sales techniques

Behind the scenes at retail, there is another factor at work. Corporations and independent
store owners alike are always trying to get the edge on their competitors. One way to do
this is to hire a merchandising solutions company to design custom store displays that will
attract more customers in a certain demographic. The nation's largest retailers spend
millions every year on in-store marketing programs that correspond to seasonal and
promotional changes. As products change, so will a retail landscape. Retailers can also
use facing techniques to create the look of a perfectly stocked store, even when it is not.

A destination store is one that customers will initiate a trip specifically to visit,
sometimes over a large area. These stores are often used to "anchor" a shopping mall or
plaza, generating foot traffic, which is capitalized upon by smaller retailers.

Customer service

According to the bookDiscovery-Based Retail, customer service is the "sum of acts and
elements that allow consumers to receive what they need or desire from your retail
establishment." It is important for a sales associate to greet the customer and make
himself available to help the customer find whatever he needs. When a customer enters
the store, it is important that the sales associate does everything in his power to make the
customer feel welcomed, important, and make sure he leave the store satisfied. Giving the
customer full, undivided attention and helping him find what he is looking for will
contribute to the customer's satisfaction.

Retail Sales

The Retail Sales report is published every month. It is a measure of consumer spending,
an important indicator of the US GDP. Retail firms provide data on the dollar value of
their retail sales and inventories. A sample of 12,000 firms is included in the final survey

41
and 5,000 in the advanced one. The advanced estimated data is based on a subsample
from the US CB complete retail & food services sample.

42
 COMPANY PROFILE
The Heritage Group, founded in the year 1992 by Sri Nara Chandra Babu Naidu, is one of
the fastest growing Private Sector Enterprises in India, with five-business divisions viz.,
Dairy, Retail, Agri, Bakery and Renewable Energy under its flagship Company Heritage
Foods Limited (Formerly known as Heritage Foods (India) Limited). The annual turnover
of Heritage Foods crossed Rs.1726.99 crores in financial year 2013-14.

Presently Heritage’s milk products have market presence in Andhra Pradesh,Telangana,

Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha and Delhi and its retail stores across
Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak
Districts and these are backbone to retail operations and the state of art Bakery division at
Uppal, Hyderabad, Telangana.

In the year 1994, HFIL went to Public Issue to raise resources, which was oversubscribed
54 times and its shares are listed under B1 Category on BSE (Stock Code: 519552) and
NSE (Stock Code: HERITGFOOD)

About the founder:

Sri Chandra Babu Naidu is one of the greatest Dynamic, Pragmatic,

Progressive and Visionary Leaders of the 21st Century. With an objective of bringing
prosperity in to the rural families through co-operative efforts, he along with his relatives,
friends and associates promoted Heritage Foods in the year 1992 taking opportunity from
the Industrial Policy, 1991 of the Government of India and he has been successful in his
endeavour.

At present, Heritage has market presence in all the states of South India.
More than three thousand villages and five lakh farmers are being benefited in these
states. On the other side, Heritage is serving more than 6 lakh customers needs,
employing more than 700 employees and generating indirectly employment opportunity
to more than 5000 people. Beginning with a humble annual turnover of just Rs.4.38
crores in 1993-94, the sales turnover has reached close to Rs.300 crores during the
financial year 2005-2006.

43
 Sri Naidu held various coveted and honorable positions including Chief
Minister of Andhra Pradesh, Minister for Finance & Revenue, Minister for Archives &
Cinematography, Member of the A.P. Legislative Assembly, Director of A.P. Small
Industries Development Corporation, and Chairman of Karshaka Parishad.

Sri Naidu has won numerous awards including " Member of the World
Economic Forum's Dream Cabinet" (Time Asia ), "South Asian of the Year " (Time Asia
), " Business Person of the Year " (Economic Times), and " IT Indian of the Millennium "
( India Today).

Sri Naidu was chosen as one of 50 leaders at the forefront of change in the
year 2000 by the Business Week magazine for being an unflinching proponent of
technology and for his drive to transform the State of Andhra Pradesh .

Forward looking statements:

“We have grown, and intended to grow, focusing on harnessing our

willingness to experiment and innovate our ability to transform our drive towards
excellence in quality, our people first attitude and our strategic direction.

Mission

Bringing prosperity into rural families of India through co-operative efforts and providing
customers with hygienic, affordable and convenient supply of " Fresh and Healthy " food
products.

Vision

To be a progressive billion dollar organization with a pan India foot print by 2020.

To achieve this by delighting customers with "Fresh and Healthy" food products, those
are a benchmark for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming

community through our unique "Relationship Farming" Model.

44
To be a preferred employer by nurturing entrepreneurship, managing career aspirations
and providing innovative avenues for enhanced employee prosperity.

Heritage Slogan:

When you are healthy, we are healthy

When you are happy, we are happy

We live for your "HEALTH & HAPPINESS"

Quality policy of HFIL:

We are committed to achieve customer satisfaction through hygienically

processed and packed Milk and Milk Products. We strive to continually improve the
quality of our products and services through upgradation of technologies and systems.

Heritage's soul has always been imbibed with an unwritten perpetual commitment
to itself, to always produce and provide quality products with continuous efforts to
improve the process and environment.

Adhering to its moral commitment and its continuous drive to achieve

excellence in quality of Milk, Milk products & Systems, Heritage has always been laying
emphasis on not only reviewing & re-defining quality standards, but also in implementing
them successfully. All activities of Processing, Quality control, Purchase, Stores,
Marketing and Training have been documented with detailed quality plans in each of the
departments.

Today Heritage feels that the ISO certificate is not only an epitome of
achieved targets, but also a scale to identify & reckon, what is yet to be achieved on a
continuous basis. Though, it is a beginning, Heritage has initiated the process of
standardizing and adopting similar quality systems at most of its other plants.

Commitments:

Milk Producers:

45
Change in life styles of rural families in terms of:

 Regular high income through co-operative efforts.

 Women participation in income generation .
 Saved from price exploitation by un-organized sector .
 Remunerative prices for milk .
 Increase of milk productivity through input and extension activities
 Shift from risky agriculture to dairy farming
 Heritage
 Financial support for purchase of cattle; insuring cattle
 Establishment of Cattle Health Care Centers
 Supplying high quality Cattle feed
 Organizing "Rythu Sadasu" and Video programmes for educating the farmers in
dairy farming

Customers:

 Timely Supply of Quality & Healthy Products

 Supply high quality milk and milk products at affordable prices
 Focused on Nutritional Foods
 More than 4 lakh happy customers
 High customer satisfaction
 24 hours help lines ( <10 complaints a day)

Employees:

 Enhancing the Technical and Managerial skills of Employees through continuous

training and development
 Best appraisal systems to motivate employees
 Incentive, bonus and reward systems to encourage employees
 Heritage forges ahead with a motto "add value to everything you do"

Returns:

Consistent Dividend Payment since Public Issue (January 1995)

46
Service:

 Highest impotence to investor service; no notice from any regulatory authority

since 2001 in respect of investor service
 Very transparent disclosures

Suppliers:

Doehlar: technical collaboration in Milk drinks, yogurts drinks and fruit

flavoured drinks Alfa-Laval: supplier of high-end machinery and technical support
Focusing on Tetra pack association for products package.

Society:

 Potential Employment Generation

More than 3500 employees are working with heritage

More than 9500 procurement agents got self employment in rural areas

More than 5000 sales agents associated with the company

 Employment for the youth by providing financial and animal husbandry support
for establishing MINI DAIRIES
 Producing highly health conscious products for the society

Qualities of management principles:

1. Customer focus to understand and meet the changing needs and expectations of
customers.
2. People involvement to promote team work and tap the potential of people.
3. Leadership to set constancy of purpose and promote quality culture trough out the
organization.
4. Process approach to assess the efficiency and effectiveness of each process.
5. Systems approach to understand the sequence and interaction of process.
6. Factual approach to decision making to ensure its accuracy.
7. Continual improvement processes for improved business results.

47
 8. Development of suppliers to get right product and services in right time at right
place.

Product/Market wise performance:

The total turnover is Rs 341 Crores during the financial year 2006-07
against the turnover of 292.02 Crores in 2005-06. Today Heritage distributes quality milk
& milk products in the states of A.P, Karnataka, Kerala & Tamil nadu.

During the year 2006-07 liquid milk sales was Rs.28329.79 lakhs against
Rs.24525.23 lakhs in the previous year. The sales of miik products including bulk sales of
cream, ghee and butter were recorded Rs 5781.59 lakhs against Rs 4677.21 lakhs.

Milk sales:

23% growth was recorded in AP 2.38 lakhs litres per day(LLPD) in 2006-07
against 1.93 LLPD in 2005-06. 13% growth was recorded in Tamilnadu-1.53 LLPD in
2006-07 against 1.35 LLPD in 2005-06. Over all growth of 6% was recorded- 5.49 LLPD
in 2006-07 against 5.16 LLPD. Flavoured milk sales recorded a growth rate of 77% over
2005-06. Butter milk sales have gone up by 45% over 2005-06.

Outlook:

Considering the growth potential in the liquid milk market, the company
has drawn plans to increase its market share in the existing markets and to enter into new
markets there by doubling revenues in dairy business in the next 3 years. To achieve this
object, company is undertaking major expansion in dairy business by inverting over Rs20
crores during 2006-07 and over Rs10 crores during the current year to strengthen the milk
procurement.

FOR DIRECTORS & SENIOR MANAGEMENT

PREFACE This Code of Conduct and Ethics (herein after referred to as the "Code") has
been adopted by the Board of Directors of Heritage Foods (India) Limited (herein after
referred to as "the Company") , to be applicable to all Directors and all members of senior

48
management i.e., personnel who are a part of the core management team and including all
functional heads of the company (herein after referred to as the 'Members') with effect
from December 23, 2005.
This Code helps the Members maintain good standards of business conduct, foster ethical
and moral conduct and promote a culture of honesty and accountability, so as to set an
example to others in the company.

The Code is not an all-inclusive comprehensive policy and cannot anticipate every
situation that may arise in the course of the company's business. The Members are
expected to bear in mind the essence and substance of the Code in all their dealings /
transactions with the Company.

STRICT COMPLIANCE All Members shall act within the bounds of the authority
conferred upon them and undertake the duty to make and enact informed, judicious and
harmonious decisions and policies in the best interests of the Company and its
shareholders / stakeholders.

With a view to maintain the high standards the Company requires, the following rules/
code of conduct to be observed in all activities. For the purpose of the code, the Company
appoints the Company Secretary as compliance officer, who will be available to Members
to answer questions and help them in complying with the code. CONFLICT OF
INTEREST The term "Conflict of interest" pertains to situations in which financial or
personal considerations may compromise, or have the appearance of compromising
judgment of professional activities. A conflict of interests exists where the interests or
benefits of one person or entity conflicts with the interests or benefits of the other
person/entity/company.
All Members should not engage in any business, relationship or activity, which may be in
conflict with the interest of the Company. Conflict may arise in many situations. It is not
possible to cover every possible conflict situation and at times, it will not be easy to
distinguish between the proper and improper activities. Set forth below, are some of the
common circumstances that may lead to conflict of interest, actual or potential.

i. Members should not engage in any activity / employment that interfere with your
performance or responsibility to the Company or otherwise in conflict with or

49
 prejudicial to the interests of the Company.

ii. As a general policy, Members should avoid conducting business with a relative or
with a firm / Company in which a relative / related party is associated in a significant
role / position.

iii. Whenever/ wherever the related party transaction is unavoidable Members will fully
disclose their interest in the transaction to the Board or to the CEO of the Company
and due records for such transactions will be maintained as per the statutory
requirements.

HONESTY AND INTEGRITY All Members shall conduct their activities, on behalf of
the Company and on their personal behalf, with honesty, integrity and fairness. They will
act in good faith, with responsibility, due care, competence and diligence, allowing
independent judgment to their subordinates. Members shall act in the best interests of the
Company and fulfil their fiduciary obligations. POLICY OF BUSINESS
RELATIONSHIP

The Company will conduct business legally and ethically. The quality of company's
products and the efficiency of its services at the most competitive price is the greatest tool
in conducting the business of the company. Profits do not justify unfair/ unethical
practices. All Members should uphold the highest standards of integrity in all the business
relationships.

INTELLECTUAL PROPERTY POLICY

All Members have utmost obligation to identify and protect the intellectual properties,
trade secrets and confidential information owned by the Company and its clients or
associates as it is critical to the success of the company. "Intellectual Property Rights"
(IPR) means generally patented or potentially patentable inventions, trademarks,
copyrightable subject matters and trade secrets.

CORPORTE OPPORTUNITIES Members owe a duty to the Company to advance its

legitimate interests when the opportunity to do so arises and are expressly prohibited from
improper use of information / property or taking improper advantage of their position.

50
PREVENTION OF INSIDER TRADING Insider trading is prohibited both by the Law
as well as by the company policy . Insider trading generally involves the act of
subscribing to or buying or selling of the Company's securities, when in possession of any
Unpublished Price Sensitive Information about the company.

"Price sensitive information " is such information, which relates directly or indirectly to
the company and which if published is likely to materially affect the price of securities of
the Company. It is important to note that both positive and negative information could be
price sensitive.

Members shall not derive benefit or assist others to derive benefit or assist them to derive
benefit on their behalf by giving investment advice from the available access to and
possession of information about the Company, which is not in public domain and thus
constituting insider information. Members shall comply with the prevention of insider
trading guidelines as issued by Securities Exchange Board of India (SEBI).
SECURITIES MARKET POLICY

The Company is committed to comply with securities laws in all the markets in which the
Company's securities are listed. The company prohibits fraudulent and unfair trade
practices with regard to the securities of the Company by all Members.

CONFIDENTIALITY OF INFORMATION POLICY The Company's confidential

information is a valuable asset. Members shall understand that protection of all
confidential information is essential. Members should undertake and be committed to
protecting business and personal information of confidential nature obtained from clients,
associates and employees.

Any information concerning the Company's business, its customers, suppliers etc which is
not in the public domain and to which the Members have access or possesses such
information, shall be considered confidential and held in confidence, unless authorized to
disclose or such disclosure is required as a matter of law. Members shall not provide any
information either formally or informally, to the press or any other publicity media,
unless specially authorized to do so. COMPLIANCE WITH LAWS, RULES AND
REGULATIONS

51
Members should comply with all applicable laws, rules, and regulations, both in letter and
sprit. In order to assist the Company in promoting the lawful and ethical behaviour,
Members have to report any possible violation of law, rules, regulations or the code of
conduct to the Company Secretary.

PROTECTION AND PROPER USE OF COMPANY’S ASSETS

All Members have the responsibility to protect the assets of the company, ensure optimal
utilization of assets and to report and record all transactions. Members shall protect the
Company's assets from loss, damages, misuse or theft and assets may only be used for
business purposes and other purposes specifically approved by management and must
never be used for any personal or illegal purposes.

COMPETITION POLICY

The Company shall compete only in an ethical and legitimate manner. It prohibits all
actions that are anti- competitive or otherwise contrary to laws that govern competitive
practices in the market place. Members shall uphold the same.

SELECTING SUPPLIERS

The Company's suppliers make significant contribution to its success. The Company's
policy is to purchase / avail supplies based on need, quality, service, price and other
commercial terms and conditions. Suppliers should be selected based on merit, price,
quality and performances. The Company's policy is to select significant suppliers through
a competitive bid process wherever possible. Under no circumstance should the Company
or its employee, agent or contractor attempt to coerce suppliers in any way.

ENVIRONMENT, HEALTH AND SAFETY POLICY

Members shall take environmental consciousness a step further as a company and

contribute to preserving nature as well as safety measures in own respective work areas.
All Members are responsible for conducting safe and environmentally sound operations;

52
this is in the interest of our own well-being and the quality of life of others. Members
shall abide by this policy.

ELIMINATION OF CHILD LABOUR

It is the Company's policy not to support child labour. The Company is committed to
implement the provisions of the Child Labour (Prohibition and Regulation) Act, 1986.
To, promote this the Company encourages its suppliers also to work towards a no child
labour policy in their industries. Members shall strictly observe that no child labour is
employed in the company.

ABOLITION OF FORCED LABOUR

The Company strictly prohibits forced or compulsory labour. The Company is committed
to ensuring that employees enter into employment and stay on in the Company of their
own free will. Members shall uphold this policy.

GIFTS & DONATIONS

No Member shall receive or offer, directly or indirectly, any gifts, donations,

remuneration, hospitality, illegal payments and comparable benefits which are intended or
perceived to be intended to obtain business (or uncompetitive) favours or decision for the
conduct of the business. Normal gifts of commemorative nature for special events may be
accepted and reported to the Board.

OTHER DIRECTORSHIPS

The Company feels that serving on the Board of directors of other companies may raise
substantial concerns about potential conflict of interest. Therefore all Directors shall
report / disclose such relationships to the Board on an annual basis. It is felt that service
on the Board of a direct competitor is not in the interest of the Company. Hence all the
Directors are barred in accepting such position without the concurrence of the Board.

ACCOUNTABILITY

The Board of Directors (BOD) shall oversee the Company's adherence to ethical and legal
standards. All employees and members of the BOD shall undertake to stop or prevent

53
actions that could harm customers or reputation of the Company and to report such
actions as soon as they occur to take corrective steps and see that such actions are not
repeated.

COMPLIANCE WITH CODE OF CONDUCT

Each Director and senior management personnel shall adhere to this code of conduct and
affirm compliance with the code on an annual basis as per the Annexure to the Code.
Violation of this Code will lead to appropriate disciplinary action.

WAIVER OF THE CODE

Any waiver of the applicability of the Code or waiver of application of any provision of
the Code to any Member shall be approved by the Board of Directors and disclosed as
required by Law or SEBI / Stock Exchange regulations.

BRANCHES OF HFIL:

HFIL has many wings. They are

1. Dairy
2. Retail

1. Dairy:

It is the major wing among all. The dairy products manufactured by HFIL are

Milk, curd, butter, ghee, flavoured milk, paneer, doodhpeda, ice cream.

2. Retail:

In the retail sector HFIL has outlets namely “Fresh@”. In those stores the
products sold are vegetables, milk& milk products, grocery, pulses, fruits etc.

54
 In Hyderabad 19 retail shops are there. In Bangalore& Chennai, 3&4
respectively are there. Totally there are 26 retail shops are there.

Fresh@ is a unique chain of retail stores, designed to meet the needs of the
modern Indian consumer. The store rediscovers the taste of nature every day making
grocery shopping a never before experience.

The unique& distinctive feature of Fresh@ is that it offers the widest

range of fresh fruits and vegetables which are directly hand picked from the farms.
Freshness lies in their merchandise and the customers are always welcomed with fresh
fruits and vegetables no matter what what time they walk in.

The following are the directors of the company:

Sri D.Seetharamaiah
Smt. N. Bhuvaneswari
Sri M. Sivarama Varaprasad
Sri R.S.Bakkannavar

The Company was registered as Non Banking Financial Institution on 5th Day of
December 1998 by Reserve Bank of India as a Deposit Taking Company under the
category Hire Purchase Company.

At Present the company is allowing Dairy Loans to Small Farmers under Tie up
arrangement with Heritage Foods (India) Limited. The Company has been earning profits
from inception and functioning in conformity with the rules and directions of Reserve
Bank of India.

55
 CHAPTER-IV
DATA ANALAYSIS
&
INTERPRETATIONS

56
The Organization is maintaining this information in their HR information
system

DATE OF BIRTH

DATA NO OF EMPLOYEES
MENTIONED 70
NOT MENTIONED 20
WRONGLY
MNETIONED 10
TOTAL EMPLOYEES 100

DATE OF BIRTH

MENTIONED

NOT MENTIONED

WRONGLY
MNETIONED
TOTAL EMPLOYEES

Out of Sample Size of 100 Employees, 70 mentioned date of birth

correctly, 20 of them did not mention date of birth at all , 10 of the
employees mentioned wrong date of birth . Correct mentioning of birthday
would facilitate correct date of retirement.

57
 DATE OF CONFERMATION

DATA NO OF EMPLOYEES
MENTIONED 65
NOT MENTIONED 23
WRONGLY MENTIONED 12
TOTAL EMPLOYEES 100

DATE OF CONFIRMATION

MENTIONED
NOT MENTIONED
WRONGLY MENTIONED
TOTAL EMPLOYEES

Out of Sample Size of 100 Employees, 65 mentioned date of confirmation

correctly , 23 of them did not mention date of confirmation at all , 12 of
the employees mentioned wrong dates of confirmation. Information about
employees leaves & benefits

58
 QUALIFICATION

DATA NO OF EMPLOYEES
MENTIONED 60
NOT MENTIONED 20
WRONGLY MENTIONED 20
TOTAL EMPLOYEES 100

QUALIFICATION

MENTIONED

NOT MENTIONED

WRONGLY
MENTIONED
TOTAL EMPLOYEES

Out of Sample Size of 100 Employees , 60 mentioned qualification details

correctly, 20 of them did not mention Qualification at all , 20 of the
employees mentioned wrong Qualification details. Correct mentioning of
Qualification would facilitate correct information on Employee Performance
Appraisal & Career Growth

59
 PREVIOUS EXPERIENCE

DATA NO OF EMPLOYEES

MENTIONED 55
NOT MENTIONED 15
WRONGLY MENTIONED 30
TOTAL EMPLOYEES 100

PREVIOUS EXPERIENCE

MENTIONED
NOT MENTIONED
WRONGLY MENTIONED
TOTAL EMPLOYEES

Out of Sample Size of 100 Employees , 55 mentioned Previous Experience ,

15 of the did not mention Previous Experience , 30 of the employees
mentioned wrongly. Correct mentioning of Previous experience would facilitate
on Employees Performance Appraisal & Career Growth

60
 NOMINEE DETAILS

DATA NO OF EMPLOYEES
MENTIONED 50
NOT MENTIONED 35
WRONGLY MENTIONED 15
TOTAL EMPLOYEES 100

NOMINEE DETAILS

MENTIONED

NOT MENTIONED

WRONGLY
MENTIONED
TOTAL EMPLOYEES

Out of Sample Size of 100 Employees, 50 mentioned date of birth correctly

, & 35 of them did not mentioned date of birth at all , 15 of the
employees mentioned wrong dates of birth. Correct mentioning of Nominee
details would facilitate correct PF & GRADUITY distribution at the time of
retirement of the employee or in case of payment of benefits on the death
of employee while in service.

61
SALARY DISCRIPENCIES:

Purpose:
While verifying the data of the employees from the personal files to SAP

information system , we found some salary discrepancies of employees. We

found some salary discrepancies of employees . We took the initiative to

rectify the salary discrepancies of the employees.

The report consists of the project that we had successfully completed. It is

A report about the salary discrepancies of employees .

The major purpose of the project is to rectify the salary discrepancies (i.e,)

the employees who are getting less salary than what they are supposed to

get are been considered & the information about those employees are

submitted to the management.

62
Procedure:
The following is the procedure of preparing the report of the employees

who are getting less salary that which they are supposed to get. The main

information to be collected relating to the reports is

From the personal files :

 Date of joining

 Qualification(Diploma, non Diploma) etc

 The designation of the employee in his previous experience

Information from SAP

 The present salary of employee

 Contract validity dates

There are three types of employees , they are regular probationer and

consultants the above data is collected and put together in the MSEXCEL

sheet and the salaries are calculated according to the company supposed to

get are considered and the differences between the actual salaries they

should get the salary they are getting is calculated .The report of this

individual employees are submitted to the management.

The MS Excel sheet consists of the contract end date as per the letter,

retainer ship fee. CCA & salary per month with the help of this information

the differences as per present salary & eligibility salary is been calculated

according to the salary matrix prepared by the company.

63
 This is the salary matrix in which the employee’s salaries are mentioned according to
their qualifications, designations and ranks prepared by the organization.

NON- DIPLOMA
DIPLOMA

JCO 10 p/ m 12 p/m + CCA = Total

(Junior Commission Retainer ship
Officer)

NCO 9 p/m 11 p/m +CCA = Total

(Non Commission Retainer ship
Officer)

NOTE:

1.This grid is based on the current salary grid for FEOs

2.Compensation for these FEOs will be in the form of a retainer ship paid

monthly.

3.List of cities along with their CCAs enclosed.

4.A diploma from the services will be considered equivalent to an external

diploma.

5. graduation other than Bsc /AMIE will be considered equivalent to a

diploma

64
The retainer ship to the employees also includes CCA (i.e.,) city compensation
allowance as per the government gazette . The CCA will be unique from
city to city.

CCA as per Government Gazette:

CIRCLE SDCA NAME CITY COMPENSATORY

ALLOWANCE

Andhra Hyderabad 25
Pradesh

Andhra Vishakhapatnam 15
Pradesh

Vijayawada 15
Andhra
Pradesh

Kurnool 10
Andhra
Pradesh

Andhra Adilabad 10
Pradesh

Cuddapah 10
Andhra
Pradesh

65
 CHAPTER-V
 FINDINGS
 SUGGESSIONS
 CONCLUSIONS
 BIBLIOGRAPHY

66
FINDINGS:

 HRIS in Heritage foods is properly streamed lined.

 It is so designed that it has each and every information of an

employee

Stored and maintained

 Uses the best product in information technology , which is SAP HR to

maintain

its employee database.

 Every person in HR team is properly trained in using SAP

 Training should be more professional with a proper training course in

SAP HR

with a certification exam at the end.

 So that every employee in the HR team would be SAP certified.

 The training provided is more oriented on the job.

 The objectivity and rationality is found to be greatly satisfied.

67
SUGGESTIONS

 Stress Management

In the growing complicated work environments , people need relaxation ……so

organization have to cope up with stress management to overcome the

challenges . For this the employees need to be trained in mediation and

campus on personality development to provide better work force.

 Knowledge Management
Knowledge Management is a process of sharing the information through
all the teams and gaining extra knowledge , which can lead to the
process of extensive learning.

HERITAGE INDIA LTDis an organization with cultures and development ,

which has well said procedures covering all the similar organization and
development , which has well said procedures covering all the necessities of
administration and human relation component , where in similar organization
impersonal elements creeping HERITAGE INDIA LTDsuccessfully maintains very
personal linkage which in itself is launch able achievement for organization.

For any organization the employee-relation management is the main criteria

in the Challenging organizations , where there is constant up gradation of
technologies like Re-engineering business process and enterprise resource
planning , which formulates SAP application . HR department is strengthening
the connection towards the employees.

In deed it was wonderful experience interaction with the employees in the

Organization in midst of pleasant work culture.

People only work through people . It is HUMAN RELATIONS that bind them
together horizontally and vertically in an organization . It is the right
motivational efforts that keep efficacy of production.

68
It was my great experience to be associated with HERITAGE INDIA LTD
and related to work on certain projects at all company , which were of
greatest importance . I , was overwhelmed to work under concrete team , who
were highly experienced in their phenomenal careers.

The project I have undertaken at HERITAGE INDIA LTDhad given me good

experience and good scope to implement the project experience I have
learned in the work environment and mark towards goal orientation.

69
CONCLUSION:

Information is a vital ingredient to management . Accurate , timely , and

relevant Information is necessary for decision making , being key to the
employee productivity , competitive strength , and corporate excellence ,
information is being reorganized as the fifth organizational resource .

A well-designed and comprehensive HRIS provides the needed information

with in the shortest period and at reduced cost . This is why computerized
HRIS is being increasingly used.

70
 BIBILOGRAPHY

WEBSITES
www.google.com
www.hero.com

BOOKS
HUMAN RESOURCES MANAGEMENT

__ Pattnayak Biswajeet

ESSENTIALS OF HRM

__ Subba Rao

HUMAN RESOURCES MANAGEMENT

___ Gary Dessler

71
 HUMAN RESOURCE INFORMATION
SYSTEM

A survey on the study of HRIM conducted by the Management to the

employees

in HERITAGE INDIA LTD . I am _____________ doing my MBA final

year.

I shall be thankful to you , if you could spend some valuable time of

yours to

fill this questionnaire.

1) EMPLYOEE MASTER DETAILS

Emp No :

Employees full name :

Designation :

Grade :

DOB(dd/mm/yy) :

DOJ(dd/mm/yy) :

Sex ( Male/Female) :

Marital Status :

Birth Place:

State :

72
 2) Details of family Members (Father/Mother/Spouse/Children/Others)

Name DOB SEX Relation Dependent Occupation

(dd/mm/yy) (Y/N)

3) Qualification Details

Qualification Mode From Date Institute/ University Year of Class/Div

(with (dd/mm/yy) Location Passing
Specialization)

3) Address Details

Permanent Present Emergency

73
City_________________
State________________
Country_____________
Pin_________________
Phone______________
City________________ City________________
State_______________ State_______________
Country____________ Country____________
Pin_________________ Pin________________
Phone_______________ Phone______________

5) Language Details (indicate against each language whether F-fluent, R-fair,

S-Slight)

Language Read Write Speak

6) Details of previous Experience(prior to your Current Job/Company)

Company Type of From To Date Designation Location Gross Job

name Industry date (dd/mm Salary Description
(dd/mm/ /yy)
yy)

7) Other Important Personal Details

Nationality :

Religion :

Native State :

Birth Place :

74
Height(cm) :

Weight(kg) :

PF No :

Cell No :

Pager No :

Marriage Date :

Identification Marks : 1)

2)

References
(Friends/Relations) : 1)

2)

Interests/Hobbies :

Details of Awards Won (if any) :

Physical Disabilities if any :

6) Additional Information ( This Space can be used for any additional information
you would like to pass on)

Date :

___________________
(Signature of employee)

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