A PROJECT REPORT

ON
A STUDY OF HUMAN RESOURCES PRACTICES
AT
GRASIM INDUSTRIES Ltd.

Submitted by
NAME: Vilina Jain
STUDENT NUMBER (SAP ID): 77121767164

A report submitted for the fulfilment of the

Requirements of
PGDBM program of
NMIMS (Distance)

Grasim Industries Limited

Pulp & Fibre Business

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 AUTHORIZATION

I, Vilina Jain, here by state that this project work entitled “A STUDY
OF HUMAN RESOURCES PRACTICES” assigned at “GRASIM
INDUSTRIES Ltd.” is an original piece of work done and submitted by
me towards fulfilment of the requirement of PGDBM Program of
NMIMS (DISTANCE). The findings and conclusions expressed in this
report are genuine and for academic purpose. It has neither been
submitted nor published anywhere before any resemblance to earlier
project or research work purely coincidental.

VILINA JAIN
----------------------------
Signature of Candidate
2
 ACKNOWLEGDEMENTS

I bow before my parents and the Divine almighty for showering the Divine grace
on me. I hereby express my heartfelt gratitude to my parents, well-wishers and
everyone who helped me with my project, whether directly or indirectly. First and
foremost, I would like to express my whole hearted thanks to our esteemed
Director for having given me an opportunity to pursue this project.

I wish to express my sincere thanks to my corporate mentor, Mr. Krishna Moorthy,

Deputy General Manager (HR), GRASIM INDUSTRIES Ltd, for giving me an
opportunity to work under his guidance and successfully complete my training. I
personally thank him for sharing his most precious time, the light of knowledge
with me and offered me the necessary help from time to time. He was the source of
constant inspiration and influence in arriving me to think and work in an effective
manner.

I would also like to thank all my professors and coordinators for their constant
motivation and encouragements throughout my studies. Without their assistance I
would not have finished this project successfully.

Vilina Jain

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 ABSTRACT

The organization structure training at Grasim industries has been a steep learning
curve in analyzing how a corporation works and how the management plays a
crucial role in it. While Grasim Industries has various business under it, the plant
Nagda chosen here produces Viscose Staple Fiber as their primary product and
hence, the major focus of the report lies on that.

The organization history, background and vision are understood to learn about its
core values and work culture. The various products, of both parent and
subsidiaries, of the organization are explained. The organization structure of the
company is identified and few modifications to it are suggested accordingly. Next,
the functions of the key departments and what they contribute to the company are
understood, along with various policies and procedures that are applicable to them
as a whole. The SWOT analysis further enhances our knowledge on the strengths
and the areas of improvement. The financial and stock exchange performance of
the company help gain an insight into the company’s market position in the
industry today. At last, knowledge and learnings based on the training done in
Grasim Industries Limited are used to suggest recommendations for further long
term sustainability and growth of the company.

The training helped immensely in understanding not only the functioning of a

manufacturing organization, but also the work ethic and conceptual skills required
by managers and employees to execute intricate plans and tasks for a business that
make it successful.

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 TABLE OF CONTENTS

Chapter No. TABLE OF CONTENTS Page No.

1 INTRODUCTION TO ORGANIZATION 8

2 ORGANIZATION STRUCTURE 14

3 FUNCTIONAL DEPARTMENTS 17

4 SWOT ANALYSIS 38

5 FUNCTIONAL HIGHLIGHTS ACROSS KEY 40

RESULT AREAS

6 FINDINGS, RECOMMENDATIONS AND 47

CONCLUSIONS

REFERENCES / BIBLIOGRAPHY 52

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Chapter LIST OF CONTENTS Page No.
No.
1 ORGANISATION HISTORY 9

1 MISSION, VISSION AND VALUES 10

1 BUSINESS OBJECTIVES 10

1 GROWTH PROFILE 11

1 PRODUCT PROFILE 12

2 ORGANISATION STRUCTURE AND 15

DESIGN
2 TYPE OF ORGANISATION STRUCTURE 16

3 KEY FUNCTIONS OF DEPARTMENTS 18

3 MANPOWER PLANNING 23

3 SYSTEM OF ACCOUNTING FOLLOWED 24

3 TECHNICAL TOOLS USED 24

3 POLICIES AND PROCEDURES 26

3 PERFORMANCE APPRAISAL SYSTEM 34

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3 CAREER PLANNING 35

3 TRAINING MEASURES 36

3 HRD WELFARE MEASURES 37

4 SWOT ANALYSIS 39

5 KEY RESULT AREAS 41

5 SIGNIFICANT SUCCESS FACTORS 42

5 FINANCIAL HIGHLIGHTS OF LAST 43

THREE YEARS
5 STOCK EXCHANGE PERFORMANCE 44

5 FUTURE GROWTH PLANS 45

6 VIEWS OF MANAGERS AND 48

EMPLOYEES
6 RECOMMENDATIONS FOR 49
DRAWBACKS
6 MODIFICATIONS TO THE STRUCTURE 50

6 CONCLUSIONS 51

BIBLOGRAPHY/REFERENCES 52

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 CHAPTER 1

INTRODUCTION TO
ORGANIZATION

8
ORGANISATION HISTORY

Grasim Industries Limited, a Flagship Company of the Aditya Birla Group, was
established in the year 1947, soon after India became an independent country, and
has gone on to become the world’s biggest Viscose Rayon producer. It was
incorporated with a vision of providing and producing man-made fibers as at the
time, a scarcity of cotton was expected. The business has considerably expanded
over the course of the last few decades.
While the company started out with textiles, it eventually diversified itself into
various other businesses. The chemical plants established under the same company
aid in providing a vital raw material, Caustic soda.

Following is a table of Grasim’s varied businesses along with the location of the
plants that the businesses are set up in.

GRASIM

CHEMICAL VSF INSULATOR VFY TEXTILES FERTILISER

 VILAYAT  NAGDA  HALOL  VERAVAL  MALANPUR  JAGDISHPUR

 NAGDA  KHARACH  RISHRA  SHAHAD  RISHRA

 RENUKOOT  VILAYAT  KOLHAPUR

 REHLA  HARIHAR

 GANJAM

 VERAVAL

 KARWAR

 BALABHA

-DRAPURAM

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VISSION AND MISSION

VISSION:
 Having a global reach and helping the Aditya Birla conglomerate in achieving
its goals.

MISSION:
 Providing the best results to the stakeholders, the employees & customers as
well as improving the society as a whole.

VALUES:
Certain common vital values and principles that are followed across all Aditya
Birla Group
Companies are as follows-
 Integrity
 Passion
 Commitment
 Speed
 Seamlessness

BUSINESS OBJECTIVES

 One of the major objectives of the company is achieving sustainability and

creating a better impact on the environment. Sourcing raw materials from
responsible places and creating partnerships that help the society as a whole.

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 Expanding the production capacity of Viscose Staple Fiber to 788 Kilo-Tones
Per Annum from the current production of 566 Kilo-Tones Per Annum.
 Increasing the production of Caustic Soda by 310 Kilo-Tones Per Annum by the
financial year ’24.
 Achieving employee satisfaction through various policies and schemes.
 Maintaining the quality of the products manufactured.
 Safety of all the laborers and workers employed at the plant is extremely crucial
and minimizing any hazardous issue that could cause injury is an important
objective.
 Building valuable long term relationships with clients.

GROWTH PROFILE

 1947 – year of incorporation

 1954 – the company starts its production of Viscose Staple Fibre in Nagda,
Madhya Pradesh
 1972 – Production for Caustic Soda begins at Nagda to support the VSF
Production
 2002 – Company purchases a stake of 10 percent in L&T
 2004 – An important year as the company acquires a controlling stake in Ultra
Tech Cement ltd
 2006 – A joint venture company is formed to acquire a stake in a VSF plant in
china
 2016 – Merger of Aditya Birla Chemicals with Grasim
 2017 – Nuvo ltd gets merged with Grasim
 2018 – Dun and Bradstreet award for brilliant performance in the fibre business

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 2018 – Earned a spot in the Forbes, United States of America’s list of growth
champions by getting a rank of 205

PRODUCT PROFILE

PRODUCT PRODUCT DETAILS

NAMES
VSF Made by converting wood into pulp, viscose staple fibre
has been increasingly used as a substitute to natural fibers
like cotton. The manufacturing process involves using
chemicals and steam to produce this eco-friendly fibre.
The business has expanded greatly over the last few
decades and generates a lot of revenue for the company.

VFY Produced with rayon grade wood pulp and the most
advanced technologies in the market today, Viscose
Filament Yarn has become a popular choice in designing
women’s apparel like sarees and embroideries. Grasim is
the largest exporter of this fibre in India.

CHEMICALS Grasim is the largest manufacturer of Caustic Soda in the

country. It is a leading Chlor-Alkali player. The business
also produces epoxy products like liquid epoxy resins,
reactive diluents and hardeners. These chemicals are used
across several industries like water 15 treatment plants,
dyes and pigments and plastics & polymers to name a
few.

TEXTILES Jaya shree textiles, under Grasim, produces one of the

finest qualities of linen with materials sourced from
Europe and technology systems adapted from countries
like Switzerland and Italy. Activities like linen spinning
and wool combing are a part of the strategic business
units.

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 FERTILIZERS The solutions provided to customers are in categories of
soil, seed, agrochemicals and plant health products.

INSULATORS Being the one of the biggest manufacturer of insulators

worldwide, it provides services to railways, transmission
lines and equipment. The total manufacturing capacity is
around 56, 000 TPA.

SUBSIDARIES PRODUCT DETAILS

ULTRA TECH India’s largest cement company and is one of the biggest
CEMENT producers of grey cement, white cement and ready mix
concrete. With 20 integrated plants and 26 grinding units,
its manufacturing process spreads out to different
countries like the UAE, Bahrain, Sri lanka and
Bangladesh overseas as well.
ADITYA BIRLA Solutions provided by the company include asset
CAPITAL management, project finance, insurance broking, equity
management, asset reconstruction, health insurance and
corporate lending to name a few.

In the fibre category (VSF) Grasim industries makes three major types of fiber
products:
 Grey fiber which is the basic product they sell in this category
 Dyed fiber includes fibers of various colors
 Specialty fiber is manufactured through a process and technology which makes
it more durable and strong to use.

13
 CHAPTER 2

ORGANIZATIONAL STRUCTURE

14
ORGANISATION STRUCTURE OF GRASIM INDUSTRIES LTD

CHAIRMAN

BOARD OF
DIRECTORS

MANAGING
DIRECTOR

CFO CPO COO CTO CMO

UNIT HEAD

FINANCE AND HUMAN OPERATIONS POWER PLANT

COMMERCE RESOURCES

ACCOUNTS EMPLOYEE PRODUCTION BOILER

RELATIONS OPERATIONS
PROCUREMENT MAINTAINENCE
HUMAN TURBO
RESOURCES GENERATOR
LEGAL QUALITY
MACHINE
ADMINISTRATION
SAFETY MAINTAINENCE
TAXATION
CSR TECHNICAL
LOGISTICS SERVICES

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TYPE OF ORGANISATION STRUCTURE
FUNCTIONAL STRUCTURE
From the organization chart made above, we can configure that the type of
organization structure followed in Grasim is a functional organization structure.
The organization is divided in a way where people specializing in one sector work
together. The Chief Operating Officer (COO) needs to be reported frequently by
the Unit Head. All the functional heads are accountable to the Unit head. Under the
functional heads there are various departments that focus on individual areas of the
function and these department managers report to their respective function
manager.
Another thing to note is that while the organization majorly has a direct line
reporting, there is also the presence of some dotted/secondary line reporting in the
Finance and HR departments to the CFO and CPO of the company.

ADVANTAGES OF FUNCTIONAL STRUCTURE

 Employees have more ease and convenience in working with each other due to
similar skills and understanding
 There is more prioritization can clarity in achieving goals and performing duties
 More efficient communication and less confusion within the respective
department
 Good career planning for employees who want to focus in a particular field

DISADVANTAGES OF FUNCTIONAL STRUCTURE

 It can lead to lack of coordination between different functions
 Focusing on the common goal of the company and not just the department
objectives can be difficult
 Might be difficult to establish uniform performance standards
 Less scope for employees wanting to do project management

16
 CHAPTER 3

FUNCTIONAL DEPARMENTS

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KEY FUNCTIONS OF DEPARTMENTS

FINANCE AND COMMERCE

The finance and commerce department plays a crucial role in recording

and maintaining all the relevant material transactions of a company.
They not only aid in their role as accounting but also advice the
company to make valuable decisions and choices through their costing
and budgeting. The need for a systematic and coordinated F&C
department is crucial to every company. Following are some of their key
functions:

 Systematic recording of all the material transactions that take place in

the business. While there are external auditors, the internal auditing is
also done regularly.
 Preparation of analysis reports and quarterly balance sheets for the top
level management to help them make business strategies accordingly.
 Filing of various indirect as well as direct taxes that the company is
subjected to.
 As a public limited company is obliged to have more scrutiny from
the government and society as a whole, this department also takes care
of all the legal work and the different laws that the company needs to
adhere to.
 The supply chain and logistics are planned and monitored carefully so
that the inflow and outflow of goods remains a smooth process.

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 Procurement of goods is an important responsibility under the
commerce head. Sourcing the most feasible raw materials, negotiating
with suppliers and taking care of the procurement data.

HUMAN RESOURCES

A company’s success and achievements can be determined by various

factors. But one of the most important factors would be its human
capital. The skills and hard work put in by the management and
employees of the organization contributes significantly towards its
success.
Hence, the human resources department has a huge role to play. They
need to manage, recruit, train and motivate the people who work in the
organization. The employees need to feel valuable and appreciated. The
key functions of this department in Grasim ltd are as follows:

 Managing and maintaining employee relations. Employee relations

refers to being a bridge between the managers and employees, helping
the company frame policies regarding their human assets and ensuring a
positive and comfortable environment for the staff to work in.
 HR business partnering to take care that the organization goals set by
the top level management are uniformly implemented and aligned with
the rest of the employees.
This aspect of human resources looks at things from a broader external
perspective and not just internal.
 Recruitment and training of employees through frequent programs
and schemes.
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 Corporate social responsibility for being conscious towards the
society and environment that the company uses resources from. Finding
new schemes of welfare measures.
 Administration of all the day to day tasks like employee
compensations, managing the labor unions and documenting important
contracts.
 Providing means of counselling for the workers in the office. Placing
emphasis on mental and emotional wellbeing.
 Planning and implementing an efficient performance appraisal
system.

OPERATIONS

The operations department is imperative in every manufacturing

organization to ensure the smooth flow of the inputs, processes and
outputs of raw materials and finished goods. They are responsible for
syncing and planning the production of the company products and
making sure it is being conducted in the most efficient manner possible.
Grasim manufactures three types of fibers and also has a chemical plant.
Hence the operations department have a very vital role in ensuring all
these factories run smoothly.

Their key functions are as follows:

 Deciding the optimal level of raw materials to be purchased at given
periods of time and ensuring the inventory is stocked to the desired
levels

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 Taking the best possible steps to ensure the safety of the workers who
are involved in the production process.
 Regular maintenance of the machines that are used in the factory
 The production department needs to regulate the following
departments under operations:
 Viscose Department
 Spinning department
 Acid production department

 Maintaining the warehouse and stores activities where the produced

goods are kept and taking precautions so they get transported to vendors
safely.
 Ensuring a strict level of quality in the products made by testing the
batches being made frequently.
 Avoiding as much wastage in manufacturing as possible.
 Some more categories that the operations function needs to adhere to
are electrical, civil and instrumentation.

POWER PLANT AND ENGINEERING

The Engineering and power plant function in Grasim handles all

activities related directly to the production energy consumption. While
the operations department might have certain things in common with the
engineering department, here the main focus is on the machines and
technical services, not the procurement, inventory or quality checks.
Some departments here are also auxiliaries that aid in uninterrupted
21
functioning of the factory like customer service and other types of
maintenance.

The major functions of this department in the organization are as

follows:
 Taking care of all the aspects that require engineering attention.
 Maintaining the Viscose and spinning machinery for smooth
production.
 Some technical services under this head include:
 Technical support
 Environment and sustainability
 Reliability maintenance
 Customer technical support
 Business Excellency
 Air and water pollution control
 Taking care of the turbo generator in the plant. Due to the intensity of
operations, this factory makes an enormous amount of energy
consumption. Ensuring that there is a consistent supply of power
throughout the plant for manufacturing, electrical and clerical purposes
is an important duty.
 Boiler in the plant is also required to be maintained as it is used
frequently to produce energy for the functioning of the plant.
NOTE: The Company has no marketing department situated in the
Nagda plant as all those tasks are handled by the top management at
their corporate head office in Mumbai.

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MANPOWER PLANNING

Manpower planning is the process of planning the human resources

required to fulfil the operational needs of a business. We need
manpower planning to tell us the optimum amount of workers that are
needed to fulfil a given task at a given time. Grasim ltd plans its
manpower based on the marketing sales plan given by the corporate
head office in Mumbai. Based on that information of sales quantity, the
company’s production department coordinates to decide the allocation of
workers and employees in the plant.

Being a massive manufacturing unit, they coordinate this by evaluating

important factors like:
 Production quantity required
 Number of people needed in every department
 Skills demanded
 Time period given
Grasim ltd in Nagda employees just over 6000 people on a regular day.
These people are divided into the following types – Management staff,
Permanent workers and contractual workers.
The management staff includes the office and administration employees
who make decisions.
According to the labor law, for any core production activity, a business
cannot hire contract laborers. Hence the plant workers involved on site
for production activities are all permanent.
Contractual labors are engaged in providing auxiliary services to the
company like material handling, plant cleanliness and security services.

23
Due to Covid-19, the plant has now been running at a 50% production
capacity since June 1st and the management has allocated approximately
1000 employees out of 6000 for handling the same.

SYSTEM OF ACCOUNTING FOLLOWED

The system for accounting followed here is the German multinational

software SAP. Systems, application and products (SAP) software is a
tool used my many corporations to handle their accounting and manage
their business. SAP reduces the human effort put into maintaining the
books of accounts by have several transactions updated in a day with the
absolute minimal errors. Its enterprise resource planning (ERP) tool is
used in Grasim ltd for building customized solutions to problems,
keeping track of the efficiency in the organization, making better
analysis and reports from the up-to date data available, navigating the
inventory of the business and managing customer relations. The
accounts at the end of the year are prepared according to the standards
and formats given by the Companies Act of 2013.

TECHNICAL TOOLS AND SOFTWARE

Technical tools have become the key to modern day efficiency and pace.
The company uses various different softwares and tools to run its day to
day operations. Some of these softwares are purchased while most of
them are customized.
24
Few examples are as follows:

PURCHASED TOOLS
 SAP: This is a widely used application in the company used for
uploading a lot of relevant data of the company and then integrating it
for ease of access and reporting. This helps the company in planning and
making decisions based on the compiled data.
Another advantage of SAP is the ERP tool that is extremely
customizable.

 Oracle: The oracle HRMS (human resource management system) is

an application that provides benefits to the HR function of the
organization by aiding in management and evaluation of the workforce.

CUSTOMISED TOOLS
A lot of applications in the company as custom made for better
management of databases and information. The common
design/programming languages in which these tools are manufactured
include VB.NET (Visual Basic.NET), VB (visual basic), SQL
(Structured query language), ASP (Active server pages) and ASP.NET
(Active server pages.NET).

Some common applications that are used are as follows:

 Work flow attendance MIS
 Hospital and pharmacy system – CSR (uses third party support)
 Payroll (categories include- staff, hospital, contractors)

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 Grid owner performance system
 Manufacturing on line quality dash board
 Staff welfare complain system/AC complains
 Production summary report IS
 Production upload into SAP system
 Contractor management system
 Moisture CV% and 16 layer graph
 Bale printing software
 Gate pass system
 Grasim cooperative society
 Vehicle health check system
 Jet tracking system
 Process log book

POLICIES AND PROCEDURES

LOAN POLICY
These policies are applicable to all the permanent employees of the
company if they request for financial assistance. The amount of the loan
that can be granted would be either six times the monthly salary of the
employee or rupees 1, 00,000, whichever is higher.

26
  Approval process:
The application for availing a loan from the company has to be sent to
the direct reporting manager and the corporate head of the function the
employee works in, for recommendations. If the recommendations are
obtained, the application is then sent to the head of the Human
Resources department at corporate. After the evaluation of various
factors like the salary of the employee, past records and the justification
given for the loan, the HR and the senior management approves the loan
if they deem it reasonable.

 Repayment process:
The loan amount is collected back over a span of 24 months. It is to be
repaid in monthly installments and is deducted directly from the salary
of the employee. The loan can also be pre-payed if the employee wishes
to do so. In case of any of any transfer of the employee within the
group’s branches, the outstanding amount of the loan will either be
recovered at such a time, or get transferred to the next location.
If the employee resigns or retires from the company and the Aditya Birla
Group, the outstanding loan amount if any will be adjusted against the
payments due to the employee by the organization. The company needs
to recover any money left after adjustments and only then can the full
and final settlement be made.
The taxes will be deducted from these transactions as applicable. The
loan categories are divided as follows:

 Medical loan: This type of loan is provided to the employee for

assisting them in paying the expenditure of a prolonged illness or an

27
unexpected medical emergency in their family. The documents that
would be required in such a scenario would be an official letter from the
doctor that explains the illness, its treatment procedure and the expenses
that would have to be paid for the same. The payment slips of the
medical bills, if they were paid. And lastly if there are previous loans
taken for the same illness, those loan documents need to be submitted.

 Education loan: The loan can be taken either for the purpose of the
education deposit to be made at the institution or for the admission fees
for school/colleges. This can be taken by the employee either for himself
or for his children. The documents to be submitted to avail this loan
would be an official letter of admission from the school/college, the
receipts of any payments made, and an approximate cost of the expenses
if no other documents are available.

 Other loans: This loan assists an employee in need of financial help

due to certain expenses that may arise over his tenure like a marriage in
the family, house repairs etc.
Relevant expense documents for these also need to be given.

ATTENDANCE POLICY
Recording attendance every day is mandatory for all employees of the
company. There is an electronic registration system maintained at the
company where timings of entry and exit are also recorded. These
records are sent to the corporate function head secretary. The attendance
is calculated on a monthly basic by taking the 16th date of the previous
month and the 15th date of the current month. On the 16th of every
single month attendance data of all employees is compiled and sent to
28
the HR head in the company. This is then used by the organization to
pay salaries accordingly.

LEAVE POLICY

Leave policy provides a job security to employees who might need to

take a short or a long leave of absence from work. There are five broad
types of leaves in Grasim as mentioned below:
 Privilege leave: This is a leave taken for a vacation or rejuvenation.
A total of 26 days of privilege leave is allowed during one year. The
leave to be of a minimum period of four days to be availed under this
category.

 Medical leave: To take more than three days for a medical leave, the
employee must provide a doctor’s certificate as proof. Medical leave
cannot be clubbed with any other kind of leave and can be availed for
maximum 60 days. An additional 60 days of leave can be asked for
extremely serious illnesses but the final decision would rest upon the
management.

 Maternity leave: The women employees of the company have the

right to take a 12 week leave with pay for their pregnancy, but out of this
only 6 weeks can be taken prior to the birth of the child.

 Child adoption leave: This policy facilitates employees going

through a process of adoption and settling in with the child post the

29
process. This policy is only applicable to a maximum of 2 children. The
leave days that can be availed are 26 days with pay.

 Sabbatical employee: Sabbatical leave is only applicable to

employees who have worked for more than 7 years in the Aditya Birla
Group and have more than 2 years left to retire. A typical leave like this
would be for four months and a maximum of 6 months.

 Casual leave: This leave policy is given to employees so that they

can take some time off to deal with their personal life work. Not more
than 3 casual holidays can be taken at once according to the company
policy.

TRAVEL POLICY

The travel policy of the company indicates that every travel made by the
employee on an official duty must be in consistency with the work of the
business. The bookings for such need to be made by the designated
travel agencies only. This helps the company to negotiate a better price
with the vendors.

 Hotel accommodation: Employees who are required to stay in hotels

over the trip must use the ABG corporate tie ups for such booking.

30
 Self-accommodation: Employees who choose to stay over with their
family or friends while on a trip instead on a hotel are also eligible for a
small reimbursement fee for the costs incurred by their hosts.

 Meals expenses: Meal expenses are reimbursed to the employees

within a certain bracket that the company has allowed. The amount of
the bracket depends on different categories and management levels that
the employee belongs to.

 Lodging: The Aditya Birla Group has several guest houses across the
country for the purpose of providing accommodation to the group
employees who travel on a frequent basis. The preference order in which
the employees need to choose their accommodation while traveling is as
follows:
i. Guest house of the company
ii. Self-arranged accommodation
iii. Hotels with Aditya Birla Group partnerships
iv. Any other hotels
The employee can only opt for a certain accommodation option when
the ones mentioned above it are unavailable. These travel policies do not
apply to the business heads and the business directors. They have
separate travel policies made by the organization.

MEDICLAIM POLICY
This is a policy through which the employees can get insurance sum
assured, according to the amount that the company has listed, for them

31
and their family. Family getting cover in the insurance policy include the
employees themselves, their spouse, their 2 dependent children and 2
dependent parents if any. The family size in the policy cannot cover
more than 6 members excluding the employee.

Some more key points to this policy as listed below:

 The duration of this policy is one year and it is renewed annually
 New India Assurance Company is the insurance provider
 Aditya Birla Insurance Brokers Limited is the broker in these
transactions
 The policy has hospitalization expenses covered due to illnesses or
accidents
 The types of expenses covered by the insurer are hospital boarding
expenses, nursing expenses, Surgeon expenses, consultancy expenses,
Cost of various types of tests and equipment like surgical appliances,
chemotherapy, artificial limbs, cost of organs, operation theatre charges
radiotherapy, etc.
 Ambulance charges of up to rupees 1500 are provided
 For dental care related treatments only root canals with capping of
reasonable costs are given to the employee
 Any medical expenses that were spent during the period of 30 days
before the hospitalization process or up to 60 days after the
hospitalization will be covered under the claim provided it was spent for
the same disease.

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CODE OF CONDUCT

 Integrity in personal conduct: Employees should be personally

responsible to the best of their knowledge about the accuracy of data or
information that is made or signed by them. Their personal details given
to the company must be factual and accurate. No employee is permitted
to use any time or resource of the company for personal benefit.

 Maintaining conduct at work: All the employees should ensure a

safe and comfortable environment around them and treat everyone with
respect. They need to work in the best interest possible of the company
and cooperate with all their teams. No bribes shall be given or received
by any employee of Grasim.

 Conflict of interest: It needs to be ensured that all types of

information regarding delegation of work, authorities, rating of
performance are not conflicting in interest and free from personal bias.
Activities like insider trading, helping companies that have a
competition with Grasim or moonlighting.

 Interface with the external world: No employee shall criticize or

speak ill about any the company on any public platform. All employees
should also ensure a proper code of conduct when they are representing
their organization in public. All commitments made must be honored.

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PERFORMANCE APPRAISAL SYSTEM

An efficient performance appraisal system is crucial in an organization

to identify the performance of an employee so that they can be reviewed
and rewarded accordingly. Grasim, being a manufacturing firm with
large scale operations, has thousands of employees working for it.
Hence, the system followed here for appraisal is complex and has quite a
lot of steps. The procedure of appraisal followed here is the Balanced
Scorecard Method. This is an important tool for strategy management.
There are four major types of components broadly identified here –
Financial perspective, internal business perspective, Customer
perspective and Innovation/Learning perspective. The human resources
department uses this to identify goals and know what output is trying to
be achieved. The employees then go through the following processes for
the appraisal:

 Identifying goals: The employees through the balanced scorecard

method will have certain goals to accomplish. The list of the goals they
need to and choose to fulfill in one financial year is noted.
 Mid-year review: A review in September is conducted to understand
how far the employees have come in achieving their goals and what
more do they need to still do.
Advice for improving performance is given.
 Annual review: In the annual review held in March, the employees
goals listed in the beginning of the year are compared with what they
have actually managed to achieve that year. Criticism and praise are
provided where needed.

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 Manager Ratings: After the annual review, the respective managers
of the employees give them a rating based on their performance, value,
skills and sincerity. This rating is then submitted to the top level
management to analyze and give increments accordingly.
 Normalization process: This is a statistical method through which
the various ratings given by the managers are balanced in accordance
with the performance of the employee.
 Results and rewards: After the whole process of evaluation is
completed the employees receiving the appraisal are duly informed and
rewarded for, as the management deems fit.

CAREER PLANNING

As mentioned earlier, September and March are the performance review

months. A lot of discussion on career planning happens during these two
months. The employees are given feedback from the managers and the
HR team. They are also informed about the various areas for
improvement and the areas where they excelled. This is also where the
career discussion happens. The employees here discuss with their
managers their future plans and what field are they interested to go into.
Their interests are discussed. If the managers find an employee’s
performance relatively good, they might also send him/her for special
trainings programs on behalf of the organization to help them excel in a
chosen area. In the Performance Appraisal software there is a section
called as career goals which is expected to be filled by all employees at
the begging of the financial year and reviewed at the end of the year.
Career expiration is also discussed with employees of a comparatively
older age.

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TRAINING MEASURES

Training in Grasim is divided into two main categories- technical and

behavioral. These training sessions are coordinated by the human
resources department for the benefit of the employees as well as the
organization as a whole. At the beginning of the financial year, all
employees, including the ones employed at the plant, are given a
Training Need Identification (TNI) pin. The different training programs
the employees want to participate in, or are recommended to participate
in are to be selected. Once that has been done the HR department makes
a complete calendar for the training programs to be held throughout the
year and circulates it to everyone concerned. The training faculty can
either be an internal part of the organization or an external part.
Sometimes digital programs are also held. Special training and
development programs are kept for people who have consistently
performed well in the organization, to develop their skills further more.
Such employees are often provided a mentor as well, to guide them.
Through such training measures and consistent high performance, their
growth can be fast-tracked in the company. Every month a review
meeting, organized by the HR, is held for the training sessions with the
managers of the company to track the growth of their employees. Some
examples of the type of training sessions are- logistics optimization,
advance taxation, safety training, 5S model of cleanliness, Occupational
health and involvement etc.

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HRD WELFARE MEASURES

The human resource department carries out a variety of welfare

programs for their employees.
Providing these measures, might not only support employees
emotionally, but also help the organization retain them better. It boosts
the motivation and the morale of the employees. Some examples of the
HRD welfare measures of Grasim are as follows:
 Employee wellness programs
 Risk policies given
 Medical insurance
 Accident policies
 Counselling support
 Employee mobility policy
 Learning and development programs
 Job rotations facility
 Organizing cultural activities.

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 CHAPTER 4

SWOT ANALYSIS

38
 STRENGTHS
 Grasim has almost a
monopolistic business in India for
VSF
 Own power generation plant
 Perennial source of water from
reservoirs
 Situated in a rural area, hence
some costs are reduced
 Manufacturing lines for small
quantities are available for
feasible production
 Different types of fiber varieties
 The plant is very established
which serves as a training ground
for the employees.
OPPORTUNITIES
 The company can have a
monopoly on the price of the
goods sold since they have very
little competition
 Through stringent hiring
processes and training measures
they can hire people in rural areas
with cost efficiency
 Catering to large customers in
the present industry and building
loyal relationships
 More input cost advantage can
be attained and dependency on
third parties can be reduced for
production processes
WEAKNESSES
 Attracting highly educated talent
from the given rural area is
sometimes hard
 The industry/plant is very
hazardous in nature, safety of
employees is crucial  Societal
pressure on operations is present
 The plant is multi-unionized
which can disrupt the flow of
production
 Politicians also put a lot of
pressure on the company and
often abuse their powers
 Environmentalists and
community activists can intervene
THREATS
 Environmental issues like water
and air pollution can cause
protests from the community at
uncertain times
 There is a small amount of
competition from the Chinese
manufacturers in the market
which could turn into a threat
 Factory shut downs can happen
at times when the union labors do
not feel satisfied with the
company policies or procedures
 Employees who were skilled and
trained in the company for years
might leave the company for
better offers in urban areas
39
 CHAPTER 5

FUNCTIONAL HIGHLIGHTS
ACROSS KEY RESULT AREAS

40
KEY RESULT AREAS

Key result areas (KRAs) of an organization are an important tool to

define the goals to be achieved. The organization has KRAs as a whole
which gets more filtered and more defined down the hierarchy of
management. KRAs help provide clarity to both the organization as well
as the employees. Some key result areas of Grasim industries limited
are:

 Production of 430 metric tons of Viscose Staple Fibre needs to be

achieved every single day in the plant.
 The output produced should be at an overall quality level of 98%
 The wastage percentage should not cross 2% in one batch of goods
manufactured
 Machine uptime or the utilization period of the equipment should be
optimized
 A key production parameter to be judged is the First Pass Yield (FPY)
that calculates how many units of goods were produced for the amount
of input given
 Machine downtime should be minimized through regular maintenance
 Ensuring that the water pollution and air pollution caused by the
company does not exceed the prescribed level in any scenario
 The effluent or the waste discharged by the company should go
through a certain chemical treatment plant where first the necessary
checks will be made

41
 Optimum utilization of power consumption is required
 The employee performances have to be evaluated with the goals to be
achieved throughout the financial year by the organisation
 Actively working towards sustainability as much as possible is
important in Grasim

SIGNIFICANT FACTORS FOR SUCCESS

Grasim Industries has today established itself as a pioneer in its industry.

Starting from just fibers, to expanding themselves into various other
industries, they have achieved success in multiple fields. There have
been many important factors that have contributed to its success.

Some of them have been listed below.

 Grasim Industries limited in Nagda was the first plant for Viscose
Staple Fiber in India and hence they have the advantage of massive
experience in this industry.
 Grasim Industries is still the only producer of VSF in India today.
 Another success factor has been the fact that they produce dyed fiber
as well. This pre-dyed fiber can be bought readily by clients and
customers who will not have to make the extra effort of getting the fiber
dyed from somewhere else. Around 60% of the production in the plant is
currently of this dyed fiber.
 This type of industry requires an immense amount of water to produce
its products.

42
Nagda, being a town with extremely harsh summer months, was not able
to provide sufficient water from the Chambal River nearby that use to
dry up during summers.
Grasim built dams and reservoirs around the river that supplied an ample
amount of water even during the non-monsoon months. This lead to
uninterrupted operations in the plant.
 Since this is a hazardous industry to work in, Grasim has always taken
the best safety measures to protect its employees and workers. The trust
and job satisfaction that Grasim has provided its workers with has
resulted in very less employee turnover and stability.
 Corporate social responsibility taken up by Grasim has created a
healthier environment around it. A company’s success can also be
measured through how much they were able to help the environment and
society around them, and Grasim has certainly done that well.
 Another important success factor has been the core values and morals
followed at Grasim. Their five important values of Grasim being
integrity, seamlessness, speed, commitment and passion, have been
ingrained in their actions and decisions.
 A good management system and effective leadership throughout the
decades has also impacted the success of the organisation.

FINANCIAL HIGHLIGHTS OF LAST THREE YEARS

Given below are the financial highlights for Grasim industries ltd for the
last three years.
HEADING 2022 2021 2020

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 Share capital 132 131 93

Reserves 41828 44658 16138

Fixed assets 13044 11712 7317
Currents assets 7427 6177 3360
Net worth 41960 44790 16231
Investments 31128 35547 8996
Loans 215 282 178
Revenue 20550 15768 10344
Net profit 515 1768 1550
Dividend 515 450 400
Tax expenses 797 744 565
Depreciation 760 630 445

Interest 200 128 60

STOCK EXCHANGE PERFORMANCE

Last year the average price per share was around 1300-1500 rupees. The
current trend, shows the share price has been hovering around the 1800
rupee mark.

FUTURE GROWTH PLANS

Some very important future growth plans of the company as are follows:

44
 Some major changes the company wants to introduce are for cost
control measures.
Controlling costs in manufacturing through automatization, reducing
maintenance bills, bringing in new technology to manufacture more
which allows the fixed cost to be distributed more widely and also
saving the energy expenses as much as possible.

 As previously mentioned, sustainability is an important thing for

Grasim industries ltd.
To help aid in this aim, they plan to plant a zero liquid discharge
machine that will purify the water they discharge as waste at a much
higher percentage than what is being done right now. This is especially a
massive project for a company like this in India and almost 600 crores is
being estimated to spend on this next year.
 The Company also plans to launch more products with an innovative
technology in the future. Their dyed fibre product has done considerably
well and they hope to include more customization in it for clients who
have specifications. Fibers that have an anti-fire technology are also
being developed which will cater to specific market needs.

 While there are new products being researched and developed, the
current products being sold are also being improved as much as possible
in terms of quality.

 Capacity expansion of the plant has been in the works for a few years
now and in the coming future, the installation for new machinery in the
expanded areas will begin.

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 CHAPTER 6

FINDINGS, RECOMMENDATIONS
AND CONCLUSIONS

46
VIEWS OF MANAGERS AND EMPLOYEES

For an organisation to work effectively, it is important that the

individuals working in the organisation also work effectively. The
employees can only work that well if they are satisfied with the culture
and environment of the workplace. At the same time, their feedback and
views can help the business understand what they are doing right and in
what areas they can improve.
Some general views of the managers and employees of Grasim
Industries Limited are as follows:
 From the employee perspective, the feedback and views have majorly
been positive.
The work environment and culture in the physical workspace seems to
be secure and comfortable. Strict regulations and rules against
harassment or bullying has been encouraging for the women employees
as well. Since Grasim industries gives its employees various other
incentives like a separate colonies for the staff to live in, schools built
for their children and hospital and medical facilities, the employees feel
content and more dedicated in their commitment to the organisation. The
low employee turnover in the company provides the evidence for the
same. The employees do however feel the lack of a work life balance.
The time they get to spend with their families and friends is less.
Maybe a more healthy work life balance would make it better for the
employees to feel happy in both their professional as well as personal
life.

 From the manager perspective, the views about the organisation and
its work environment have been positive overall. A lot of managers who
47
have been associated with the company for over a decade feel that the
experience has helped them grow and build their administrative as well
as conceptual skills. Grasim Industries being such a big firm has
certainly given them a lot of exposure. But the managers also feel like
that the organisation as a whole needs to reduce its conservative
approach and become more comfortable in taking risks. The need for
more training and development of employees to improve their skills in
the long term is also felt. If more employees are skilled and trained
about the latest technology and innovations that are happening in the
market in the fiber industry currently, the organisation could gain the
capacity to innovate more products.
The human resource would also become more productive that way.
Overall the views of the managers on the organisation are positive and
solutions to their criticisms could help in improving the overall
performance of the employees and the organisation both.

RECOMMENDATIONS TO OVERCOME THE DRAWBACKS

Some recommendations to overcome the issues being faced currently by

Grasim Industries
Limited are as follows:
 The organisation could become more free to take risks sometimes in
the market as it could help them gain higher rewards
 Modernization of the plant is needed. Since the infrastructure is old, it
needs to be modified so that the latest technology for production can be
supported

48
 Training and development programs should be encouraged by the
managers of the various departments to improve the skills/knowledge of
the individuals and the human resource department can help them in
doing so
 Marketing campaigns about VSF should be encouraged as most
people have limited knowledge about this man-made fiber
 New types of products can be developed with innovative features in
the fiber that leads to a better quality as well
 Efforts by the organisation should be taken to improve the work life
balance of employees. Time spent in the office by the employees can be
made more productive and new systems/processes can be installed to
reduce the manual burden of work in certain areas. This would help
them in getting work done faster and on time. Spending more leisure
time in personal life will become easier and the mental satisfaction
would increase

MODIFICATIONS TO THE ORGANISATION STRUCTURE

Some changes that can be made to the functional organisation structure

are as follows:
 Hierarchy lines can be cut short to reduce some layers in the structure
of reporting
 Currently there seems to be an imbalance as the number of managers
are too many for the number of employees that are working. This leads
to reporting the same thing to several managers and wastage of time.
The number of managers in the company should reduce.

49
 Delegation of authority can be more encouraged to empower
employees
 Job rotations among different departments sometimes could reduce
conflicts between the various functions of the structure and bring more
fluidity in communication which could increase efficiency as a whole in
the organisation

CONCLUSIONS

This organisation structure training analysis from Grasim industries gave

important insights into the way corporations work today. The company’s
clear vision and mission along with appropriate strategic plans, has
helped it in building itself as a pioneer in the industry today. The
company’s decision to follow a functional structure fits appropriately for
the type of work they carry out. The departmentalization helps them
work productively. Grasim’s biggest strength is the large market share
they hold in the VSF business in the country and their current biggest
weakness would be the dated technology being used in the plant. The
covid-19 pandemic has certainly affected the demand of their products
in the market which also resulted in a negative stock exchange
performance from March onwards. The company has however started
functioning with over 50% capacity with appropriate safety measures
being taken, and hopes that the demand in the market soon picks up as
things start getting back to normal.
Overall, the virtual organisation structure training analysis of Grasim
industries limited has been a steep learning curve in understanding the
features of the fiber business, their short and long term objectives and
learning about their planning, organizing and staffing process.

50
REFERENCES/BIBLIOGRAPHY

Viscose Staple Fibre - Grasim. grasim.com.

https://www.grasim.com/about-us/our-businesses/viscose-staple-fibre.

Check out the Grasim industries ltd's all historical data | Livestock/Share
Prices at www.indiainfoline.com. Indiainfoline.com.
https://www.indiainfoline.com/company/grasim-industries-ltd/historical-
data/227.

Grasim Share Price, Grasim Stock Price, Grasim Industries Ltd. Stock
Price, Share Price, Live BSE/NSE, Grasim Industries Ltd. Bids Offers.
Buy/Sell Grasim Industries Ltd. news & tips, & F&O Quotes, NSE/BSE
Forecast News and Live Quotes. Moneycontrol.com.
https://www.moneycontrol.com/india/stockpricequote/diversified/grasim
industries/GI01.

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