Human Resources Management

Assignment 1

Case study on HRM practices in a garment industry

Submitted by:

Pankhuri Srivastava

BFT/17/24

BFT-VI
Introduction to Aditya Birla Group:

The roots of Aditya Birla Group can be traced back to the 19th century, when Seth Shiv Narayan
Birla began trading in cotton in the picturesque town of Pilani in the Rajasthan Desert. It was
here that Seth Shiv Narayan Birla started trading in cotton, laying the foundation for the House
of Birlas.

Today, a US $48.3 billion corporation, the Aditya Birla Group is in the League of Fortune 500.
Anchored by an extraordinary force of over 120,000 employees belonging to 42 nationalities,
the Group is built on a strong foundation of stakeholder value creation. With over seven
decades of responsible business practices, our businesses have grown into global powerhouses
in a wide range of sectors – metals, pulp and fibre, chemicals, textiles, carbon black, telecom
and cement.

Aditya Birla Fashion and Retail Limited (ABFRL)

ABFRL emerged after the consolidation of the branded apparel businesses of Aditya Birla Group
comprising ABNL's Madura Fashion division and ABNL's subsidiaries — Pantaloons Fashion and
Retail (PFRL) and Madura Fashion & Lifestyle (MFL) in May 2015. Post the consolidation, PFRL
was renamed Aditya Birla Fashion and Retail Ltd.

ABFRL brings together the learnings and businesses of two renowned Indian fashion icons,
Madura Fashion & Lifestyle and Pantaloons creating a synergistic core that will act as the
nucleus of the future fashion businesses of the Aditya Birla Group.

As a fashion conglomerate, ABFRL has a strong network of 2,714 brand stores across 750 cities
in the country. It is present across 18000+ multi-brand outlets and 5000+ point of sales in
department stores across India. It has a repertoire of leading brands such as Louis Philippe, Van
Heusen, Allen Solly and Peter England established for over 25 years.
Pantaloons is one of India's largest fast fashion store brand. The International Brands portfolio
boasts of- The Collective, India’s largest multi-brand retailer of international brands and selects
mono-brands such as Ted Baker, Ralph Lauren, American Eagle and Simon Carter.

Brands
HR practices and analysis:

1. Recruitment process

● Job description
● Competency maps
● Technical and aptitude test
● Group discussions
● Structured interviews
● Psychometric tests
● Values assessment test

Equal opportunity is given to everyone and there is no discrimination based on religion,

community, race or sex.

2. Creating an identity

The redesign process started under Mr. Kumar Mangalam Birla’s leadership. The Group
launched for the first time a corporate identity that would serve as its logo—“Aditya,”
which means “The Rising Sun.” At that time when the organization was going through
turmoil, the symbol of the Rising Sun brought different parts of the Group together,
helped us as an organization to reenergize ourselves, cross the bridge, and to get
started on the path of change. It induced a new optimism and served as the first positive
step for the company’s redesign.
The company needed brand recognition, for which, another cell was introduced. This
was the Aditya Birla Management Corporation Limited (ABMCL). It created an identity
that helped in attracting the best and brightest talents.
The Group logo and the ABMCL gave employees ownership with the brand rather than
the family; that, in turn, moved the Group from a paternalistic to a professional culture.

3. Organizational restructuring:

The structure of the Group is entirely divisional; it is unit based; that gives it high clarity
but creates confusion and contradiction at the top because there are 20 to 25 different
businesses. The governance role of the Group with corporate functions is at the
conglomerate level. Mr. Birla is responsible for the corporate functions.
 This interplay of support/corporate function has been improved with the new structure.
There is more accountability and responsibility at the business head level, though
people sometimes feel proprietary but not necessarily entrepreneurial. Figures 3A and
3B show in detail the organizational structure before and after redesign. The businesses
have been consolidated by product structure and report to one business head, rather
than in the earlier structure, in which similar businesses reported to different business
heads. The country head was done away with, and the overseas operations were
structured by the different businesses.

4. 360 degree appraisal

In traditional Marwari business families in India, scions are not expected to have a mind
of their own. Typically, they are expected to continue family traditions and customs and
play the benefactor babu. It is very hierarchical, usually with no woman in the top
echelons, and has a prevalent control-and-command management style. To do away
with the babu culture so prevalent at Birla companies, Mr. Birla launched a 360-degree
performance appraisal program that allowed managers to question even his leadership
style. Complacency at Aditya Birla Group is not tolerated.
A 360 degree feedback program was introduced that permitted managers to raise
questions over leadership styles, managerial ability and also personal traits. After the
feedback, each senior manager has to submit a six page letter mentioning the areas of
improvement and their expectations.

5. Employee benefits

● Health: Accident insurance, hospitalization, insurance for self, family, and

dependant parents, gymnasium, onsite doctor and a cafeteria that serves hot
and nutritious food.
● Safety: Compliance with local laws regarding safety, health and the environment
for their employees and neighboring communities.
● Recreation: Meditation room, yoga classes, library
● Other: Concierge services, ATM, travel desk
 6. Family benefits

● Education: A network CBSE and state board affiliated across India

● Scholarships: ​Pratibha​, Aditya Birla Group’s scholarship scheme aids employees’
children for professional education.
● Insurance: ​Nischint, ​provides monetary relief to employee’s families in the event
of death or disability during term of service.
● Recreation: Clubs, auditoriums, super markets and walking tracks

7. Happiness index:

● Annual day
● Kids’ day out
● Family picnics
● Best employee celebration
● Sawan mela

Periodic surveys are conducted to keep a track of employees’ happiness and

satisfaction at work.

Challenges and solutions:

1. Staff drain due to e-commerce websites:
A lot of young talented crowd is drifting towards e-commerce websites due to
challenging roles, good compensational packages, etc.
This can be tackled by promoting young employees to considerable leadership positions
and a hike in salary along with benefits.

2. Retaining talented staff:

Competition is fierce and options are abundant. To retain talented crowd, policies
should be introduced that offer long-term benefits. Overall well-being and happiness
index should also be taken into consideration.

3. Increasing workplace diversity and sensitivity:

Seminars and workshops should be conducted, to induce a feeling of inclusivity among
the employees.
4. Workforce training:
Workshops and training seminars should be conducted to make sure that the employees
are up-to-date with the skills and trends in the industry. This will increase the overall
productivity of the company while ensuring skill enrichment of the employee.