52160920 Recruitment and Selection Itc

CHAPTER 1 INTRODUCTION

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INTRODUCTION OF HUMAN RESOURCE MANAGEMENT

Organisation exists for people. The behavior and level of performance of the people will show their effect on the organisation. Human resource manage managemen mentt can be define defined d as that that part part of manage managemen mentt proces processs which which develops, and manages the human elements of enterprise considering the resourcefulness of the organisation own people in terms of total knowledge, skill, skill, creative, creative, abilities, abilities, talents, talents, aptitudes aptitudes and potentiali potentialities ties for actuating actuating effectively.

Human Resource Management is the process of managing the people of an organisation with a human approach. Human Resource approach to man manpo powe werr is the most ost esse essen ntia tial an ind ndiispe spensab nsable le reso resour urce ce of any any organisation. There is a need to look at the HRD concepts, components and mechan mechanism ismss more more compre comprehen hensiv sively ely and in a integr integrate ated d way as people people relate related d functi functions ons rather rather than than isolat isolatee them them from from person personnel nel functi functions ons or  industrial relations aspects. Employees participation in management is no longer an idealistic or ideological conception. It is an imperative need to cope with change in organisation. It is in the context of changing profile of   people with high expectations and the demands for high performance.

Manpower planning is incorporated into human resource planning, recrui recruitme tment, nt, select selection ion,, superv supervisi ision, on, such such other other functi functions ons of person personnel nel mana manage geme ment nt from from part part of HRM, HRM, othe otherr aspe aspect ctss like like hu huma man n reso resour urce ce deve develo lopm pmen ent, t, care career er plan planni ning ng and and deve develo lopm pmen ent, t, cons consta tant nt effo effort rtss for  for  appraisal, research and feedback system, data storage and so on receiving 2

greater attention to the people at work backed by welfare amenities and cordial industrial relations, policies must also be an integral part of HRM. In the the HRM HRM appr approa oach ch,, pers person onne nell func functi tion on is no nott mere merely ly reco record rd keep keepin ing g function. Rather it is a constant endeavor to motivate the people at work to foster a oneness with the organisation and its performance goals. This is achieved neither through pressure tacties nor through conflicts and struggles,  but through constant cooperation, team-building and mutual understanding.

HRM HRM is conc concer erne ned d with with the the effe effect ctiv ivee and and effi effici cien entt use use of the the organi organisat sation ion’s ’s human human resour resources ces.. We need need human human resour resources ces to run our  operations. Hence, we need to attract and hire the best employees possible. One of the functions of a human resources management departmental is to attract potential employees. Having attracted potential employees, we need to be able to choose the best of these applicants. Further more, having hired employees, we need to train them if we expect them to function effectively. HRM also involves involves the maintenan maintenance ce of human resources. resources. This includes includes the issue of compensation.

Human Resource Management:

“Human Resource Management is a series of decisions that affect the relati relations onship hip betwee between n the employ employees ees and the employ employers ers;; it affect affectss many many constituents and is intended to influence the effectiveness of the employees and employer”.

HRM--HRM--- effect effective ive and effici efficient ent use of the the organi organisat sation ion’s ’s human human resources within most organisations, considerable thought is given to the 3

effective and efficient use of financial resources. This is called “Financial Manage Managemen ment” t” and “Marke “Marketin ting g Manage Managemen ment” t” concer concerns ns it self self with with the  promotion and sale of the organisation’s products.

HRM HRM is conc concer erne ned d with with the the effe effect ctiv ivee and and effi effici cien entt use use of the the organisation’s human resources. What kind of human resources (employees) we need? How to procure them? How to select only the best? How to ensure that the people chosen can do the jobs in the way which is expected them to do? How to measur measuree their their effec effectiv tivene eness? ss? Human Human resour resource ce manage managemen mentt meets all these.

Once our employees are functioning effectively, we need to ensure that that they they cont contin inue ue to do so; so; we need need to conc concer ern n ou ours rsel elve vess with with thei their  r  motivation. In the case of hiring, we need to decide what kind of employee we’re looking for? When engaged in the selection process, we must decide which of the applicants will actually be the best employee? HRM also involves the main penance of human resources. This includes the issue of  compensation. Theories of motivation also point out employees needs for  feedback therefore, we need to be able to determine when our employees are doing a good job.

Ther Th eree is a need need to un unde ders rsta tand nd the the jobs jobs that that ou ourr empl employ oyee eess are are   performing and, to understand their jobs, we need to do a job analysis. Esse Essent ntia iall lly, y, the the job job anal analys ysis is form formss the the core core of the the hu huma man n reso resour urce ce management function. In doing a job analysis, we are essentially gathering raw data about the jobs in our organisations. Human Resource Development has has been been defi define ned d as an orga organi nize zed d lear learni ning ng expe experi rien ence ce,, cond conduc ucte ted d in a 4

defi defini nite te time time peri period od,, to incr increa ease se the the po poss ssib ibil ilit ity y of impr improv ovin ing g job job  performance and growth.

RECRUITMENT AND SELECTION

The Employment Process:

On the face of recruitment and selection seem to be a fairly straight forward procedure. Its objectives to place the right people in the right place to achiev achievee organi organisat sation ional al goals. goals. Recrui Recruitme tment nt and select selection ion are only only two activities or stages in what can be called the employment process. It can be divided into five stages

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Manpower Planning

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Job Analysis

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Recruitment

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Selection

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Induction and follow up

An effective employment process requires that each of these stages or  activities must be gone through in an entire and systematic manner.

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Recr Recrui uitm tmen entt and and sele select ctio ion n allo allow w mana manage geme ment nt to dete determ rmin inee and and gradually modify the behavioral characteristic and competence of the workforce.

Manpower Planning:

Manpower planning enables a department to projectiles short to long term needs on the basis of its departmental plans. So that it can adjust its manpower requirements to meet changing priorities. The more changing the environment the department.

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The number of requirements in a specified timeframe and the availability of talent.

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Early indications of potential recruitment or retention difficulties

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Availability of suitable qualified and experienced successors.

Job Analysis:

Consists of defining the job and discovering what the job demands in terms of employee behavior. Job analysis forms the basis of a number of   personnel activities such as job evaluation, job design, and performance. Appraisal with regard to the employment process and recruitment and selection in particular job analysis clarifies the duties and responsibilities of  a job, the knowledge, skills and expertise required to under take it.

First Way: You ask the employees to prepare their own job description.

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Second Way: Ask the manager or supervisor of the employee to prepare a  job description.

Third Way: Employ a trained job analyst and interviews the employees.

In any job description/job specification there are five key areas: 

Job title

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Job Purpose

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Key results area

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Who the employee reports to

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Responsibilities

Recruitment:-

Edwin B. Flippo defined recruitment as “The process of searching for  the prospective employees and stimulating them to apply for jobs in the organisation”.

Thus there are two states in the recruitments 1. Searching Searching for suitab suitable le candida candidate te for job and and 2. Motivatin Motivating g and encour encouraging aging them to to apply apply for jobs. jobs.

SOURCESS OF RECRUITMENT

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Internal Sources of Recruitment:-

The main sources of internal recruitment are promotion, transfer and demotion. There are many advantages of using the internal labor market.

An accu accura rate te kn know owle ledg dgee of the the empl employ oyee ee and and thei theirr perf perfor orma manc ncee internal recruitment can have a positive impact on employee moral. Some organisations believe that this approach can increase employee loyalty and commitment.

External Sources of Recruitment:

There are four main sources

Unsolicited Applications: These are people who have submitted their CV to the organisation on a speculative basis. They should be kept on file in the organisati organisation on and used as a source source of suitable candidates candidates when the occasion occasion arises.

Schools and Colleges: Many companies have developed links with particular  schools and colleges, which they use as a recruiting source.

Recruitment agencies agencies and consultancies: consultancies: Apparently, there there is extensive extensive use of recruitment agencies, contracting out the recruitment task has a number of  advantages for the organisation.

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Media Advertising: This is the most widely known method of recruitment. It has 3 main main object objective ives. s. Attrac Attractt suitab suitable le candid candidate atess to apply, apply, discou discourag ragee unsuitable candidates from applying, promote organisations public image.

CONSTRAINTS ON RECRUITMENT

Logically, firms would seek to recruit in a manner that guarantees the greatest number of qualified applicants. However, there are often constraints on the recruitment process, which prohibits some methods.

Some of these constraints are

1. Organi Organisat sation ional al Polic Policies ies 2. Affirm Affirmati ativeve-act action ion program programss 3. Recr Recrui uite terr Hab Habit itss 4. Enviro Environme nmenta ntall Condi Conditio tions ns 5. Job Job Req Requi uire reme ment ntss 6. Organi Organisat sation ional al Polic Policies ies

Another organisational policy that could potentially constrain recruitment efforts is a firm’s compensation policy

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Affirmative-action plans: Occasionally, firms may adopt affirmative actio ction n po poli lici cies es.. An effor ffortt to attai ttain n a work workfforce rce that that is more repr repres esen enta tati tive ve of the the gene genera rall po popu pula lace ce.. In effo effort rtss to incr increa ease se 9

workforce diversity, firms may choose to voluntarily hire persons with specific characteristics; more often, law mandates such affirmative action policies.

Recr Recrui uite terr habi habits ts:: Recr Recrui uite terr habi habits ts many many also also cons consti titu tute te a recr recrui uitm tmen entt constr constrain aint. t. For exampl examplee past past succes successes ses may lead lead to habits habits or prefe preferre rred d tend tenden enci cies es in recr recrui uitm tmen ent. t. One One recr recrui uite ter, r, who who had had play played ed rugb rugby, y, had had considerable success recruiting other rugby enthusiast. Where as he had luckily had this initial success, he wants so far as to overtly seek out rugby   pla playe yers rs in his his recr recrui uitm tmen entt ob obvi viou ousl sly, y, rugb rugby y skil skills ls are are no nott nece necess ssar aril ily y indicators of job-related success, such recruiter habit, do not constitute good recruitment practices. In the end, such abets may actually perpetuate past mistakes.

Job Requirements: - Generally, skilled workers are more difficult to find than unskilled workers. workers. A limited pool pool of potential potential applicants causes firms firms to use different recruiting techniques. Where as an advertisement placed in a news news paper’ paper’ss classi classifie fied d sectio section n may serve serve to attrac attractt unskil unskilled led worker workers, s, recruitment of skilled workers requires more.

Job Posting: It is one of the most effectively used comparative mechanisms. The candidates design it and it will contain information they wish to convey and may get internal recruitment. Further, job posting help employees feel they have some control over their future in the organisation.

Environmental Conditions: In many unionized environments, policies may restrict the number of part-time employees working for the firm. This is 10

clearly a recruitment constraint insofar as it places limitations on the firm. However, it may well also limit the number of applicants because some very highly qualified applicants may simply prefer part-time employment.

Empl Employ oy Refe Referr rral als: s: Anot Anothe herr comm common on recr recrui uitm tmen entt meth method odol olog ogy y is the the employee referral. To fill job vacancies, present employees refer job seekers to the HR department as potential employees

SELECTION

Selection:

During recruitment, it is important to have a large pool of qualified recruits. However, after having recruited this large number of job applicants, organisations must weed out the unqualified ones and then select the very  best remaining candidates for the job. A well designed selection process will yield information about a candidate’s skills and weaknesses.

There are some legal considerations involved in the selection of new employ employees ees.. The fear fear of wrongf wrongful ul termin terminati ation on lawsui lawsuits ts has caused caused many many comp compan anie iess to beco become me far far more more conc concer erne ned d abou aboutt whom whom they they hire hire.. If a company has selective in its hiring practices, it can reduce the instances when it will be necessary to terminate employees.

Short-listing is the process to which a number of applicants are chosen form the total number of candidates further assessment before making a final decision. Applicants may be divided into 3 categories 11

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The marginal

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The suitable, possible

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The unsuitable

Step 1:

Preliminary Selection: Preliminary selection of applicants is often done by setting minimum standards for the job, and communicating these standards for the job, job, and commun communica icatin ting g these these standa standards rds to the employ employees ees,, and agencies that help to recruit. The fact that some potential applicants may not apply because of their inability to meet the minimum requirements serves as an initial screening device.

Step 2:

Initial screening: The initial screening is done to select only the suitable candidates through the further stages in selection them, when reviewing resu resume mess and and appl applic icat atio ions ns form forms, s, firm firmss are are furt furthe herr able able to scre screen en ou outt unacceptable job candidates. At this point, firms can also assign priorities to the resumes so that the most promising candidates may be seen first.

Step 3:

Appl Applic icat atio ion n form forms: s: Th Thee appl applic icat atio ion n form form is desi design gned ed to ob obta tain in the the info inform rmat atio ion n on vari variou ouss aspe aspect ctss of the the appl applic ican ants ts soci social al demo demogr grap aphi hic, c, academic and work related background and references. 12

Step 4:

Tests: A test is a sample of a aspects of individuals behavior, performance of  attitude. It also provides a systematic basis for comparing the behavior,  performance or attitude of two or more persons. Tests serve as a screening device and provide supplementary inputs in selection decisions.

A number of selection lets are quail able to assist in making selection decisions.

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Attainment test

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Attitude test

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Personality test

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Intelligence test

Step 5.

Selection Interview: - The employment interview is conducted to learn more about the suitability of people under consideration for a particular job and is one further obstacle for the applicant to overcome. The interview is one further means of reducing the number of people who might be eligible for  the job

Step 6:

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Medi Medica call Ev Eval alua uati tion on:: Medi Medica call eval evalua uati tion on is also also kn know own n as ph phys ysic ical al examination is a selection tool which varies from the comprehensive to nominal, depending upon the job. Comprehensive physical examinations are necess necessary ary for for phy physic sicall ally y handic handicapp apped. ed. It reveal revealss whethe whetherr the candid candidate ate   posse possesses sses the requir required ed stamin stamina, a, streng strength th and tolera tolerance nce of hard hard workin working g conditions. Step 7:

Final Interview: Since the immediate supervisor is ultimately responsible for  new workers, he or she should have input into the hiring decision. The supervisor is better able to evaluate the applicant’s technical capabilities and is in a better position to answer the interviewee’s job-related questions. Further, Further, the superviso supervisor’s r’s job-relate job-related d questions. questions. Further, Further, the supervisor supervisor’s ’s  personal commitment to the success of the new employee is higher if the supervisor has played a role in the hiring decision.

Step 8:

Job Job offe offer: r: Th Thee actu actual al hiri hiring ng of an appl applic ican antt cons consti titu tute tess the the end end of the the selection process. At this stage, successful applicants must be notified of the firm’s decision.

The applications of unsuccessful applicants are often kept on file and the applicants of successful applicants will be retained in the employee’s  personnel files.

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There are other methods followed by different organisations in the  process of selection. Management chooses the most appropriate candidate to accomplish accomplish the organisat organisation ion objectives objectives,, while while the individua individuall chooses chooses the organisation best suited to fulfill his aspirations. Once a person is selected induction and orientation programs follows.

Induction and orientation:-

Induction is generally done to acquaint a new employee with the organizati organization, on, its objective objectives, s, policies, policies, procedure procedures, s, philosoph philosophies, ies, strategie strategies, s,  products, market, customers, etc., So that the employee is clearly informed of what is expected of him as an employee of the organisation. Induction  program may be helpful for the new employee to shed their fear, delicacy or  anxiety, and get them fully identified with the organization. Many organisations provide induction and orientation in a career path method; i.e., rotating the new employee throughout the organisation, its various locations, divisions, departments and sub-units and closely watch and observe under the supervision of experienced seniors.

NEED FOR STUDY

Thee chie Th chieff pu purp rpos osee of the the stud study y is to un unde ders rsta tand nd the the proc proces esss of  recruitment and selection practices of the organisations especially of ITC. For every every organ organisa isatio tion n human human is main main source source and resour resource ce for gettin getting g   profits, in such a situation there is a need to select the best available manpower from the sources. 15

The study is mainly made on the recruitment and selection practices of the organisation. The current study deals with the different steps involved into into the the pro proces cess of recru ecruiiting ting and and sel selecti ecting ng the the empl emplo oyee yees in the the organisation. With the help of the study an employee in the individual opinion of the employees of the organisation about their selection to the findings mad in the report.

OBJECTIVES OF THE STUDY

The present study recruitment and selection practices in ITC are made  by keeping the following as the main objectives.

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To introduce the corporate profile with regard to the human resource management practices mainly concentrating on the recruitment and selection practices of the organisations with reference to ITC.

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To study the recruitment and selection practices at ITC.

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To analyze the views and problems of the employees and to know the level of satisfaction of them.

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To improve the recruitment and selection practices in ITC

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Providing the required suggestions which help in the growth and development of the management of the personnel of the organization.

SCOPE OF THE STUDY

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HR approach of management to its people would go a long way in activating effectively. It facilitates in identifying the right kind of people, socializing them in the most appropriate way, training and developing them in the right direction, assigning the tasks which are best suited for every individual so as to bring out their best, motivating them to make their best contribution and creating conditions for the people to enjoy their work.

As the the peop people le are are cons consid ider ered ed valu valuab able le hu huma man n bein beings gs,, the the ever every y  perspective of management changes, and the people are motivated to foster a oneness with the organisation.

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CHAPTER 2 METHODOLOGY

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METHODOLOGY

Method Methodolo ology gy is the proced procedure ure applie applied d to gather gather the inform informati ation on requ requir ired ed for for the the stud study. y. Coll Collec ecti tion on of the the data data refe refers rs to a pu purp rpos osee for  for  gathering information relevant to the subject matter under the study and the method used depends mainly on the nature.

Accordingly, the data collection can be grouped in to two types

1. Prim Primar ary y data data 2. Seco Second ndar ary y data data

Primary data are the originally observations collected by the researcher or  his agents for the first time and used by them in their investigation. Once  primary data is used it ceases to be primary data and becomes secondary data.

Data Collection Process:-

Primary Data:- The sources of Primary data includes direct personal investigation interview. Indirect oral investigation, information received through customers. Drafting a schedule questionnaire. Information with respect to the products, service of the retailer. Mode of distribution, availability of mikswas gathered from the primary data. The primary data in the present study was obtained by questionnaire.

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A survey was conducted on the consumer perception of SANGAM DAIRY information in the survey is being collected from the consumers, in Guntur and Tenali division’s areas.

Questionnaire:-

Primary data is being collected from the agents through questionnaire. It is the most common instrument in collection of primary data questions are both open ended and close ended questions were simple and easy under stand. The number of questions was limited and not repeated.

Secondary Data:-

Sour Source cess of seco second ndar ary y data data can can be cate catego gori rize zed d into into two two bo boar ard d categories namely published statistics and unpublished statistics. Various sources are available namely central and state Government publications. Foreig Foreign n Govern Governmen mentt pub public licati ations ons,, techni technical cal and trade trade journa journals, ls, boo books, ks, magazi magazines nes,, news news papers papers,, busine business ss and indust industry ry pub public licati ations ons statis statistic tical al report reportss etc. etc. unp unpubl ublish ished ed statis statistic ticss includ includee infor informat mation ion found found in dairie dairies. s. Lette Letters rs,, biog biogra raph phie ies, s, auto autobi biog ogra raph phie ies, s, scho schola lars rs,, rese resear arch ch work work,, trad tradee associations etc.

In internal sources a business organisation has to maintain records of  financial accounting, sales records, reports of salesmen etc. the marketing manager and the other staff of the company assisted in providing the needful infor informat mation ion.. Infor Informat mation ion regar regardin ding g Indian Indian milk milk indust industry ry and A.P milk  milk  industry gathered from the secondary sources like internal. 20

Sampling unit: The study is limited to manpower working in ITC

Sampling Size: The total sample size includes 100 employees

Sampling technique: Judgment sampling has been adapted for the present study.

Limitations:

1. Recrui Recruitme tment nt and selecti selection on is a most most field of study study even it is a single single organisation. 2. A duration duration of two months months is not suffici sufficient ent for present presenting ing report report on the topic 3. The data data which is collect collected ed form a sample sample of 100 100 employees, employees, may may not  be constraint.

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CHAPTER 3 INDUSTRY PROFILE

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TOBACCO INDUSTRY PROFILE

Bleeding state of cigarette/tobacco industry:-

Tobacco today is the largest contributory to Indian excise collections. Despite that the industry has been getting step-motherly treatment by the central government. The industry has been facing regular increase in excise duty on cigarettes in every budget for past so many years. The cigarette indu indust stry ry in part partic icul ular ar has has been been suff suffer erin ing g bo both th at the the hand handss of cent centra rall government as well as state governments. In CY 12100 also the cigarette industry was again made a scapegoat and a proposal for additional levy of  1% on ciga cigare rett ttee manu manufa fact ctur urer erss was was made made to pay pay for for the the lack lackad adai aisi sica call approa approach ch of Govern Governmen mentt regard regarding ing unregu unregulat lated ed tobacc tobacco o crop. crop. Last Last year  year  (cy10/00) a number of big events like crop holiday for the current year,   propo proposal salss of additi additiona onall levy levy on cigare cigarette ttess etc. etc. domina dominated ted the indust industry ry scenario.

Based on the information provided by Mr. Ram Poddar, CEO of  golfer Phillips India ltd, we herby present an out look on the industry.

Industry background:

Indi Indiaa is a majo majorr grow grower er and and expo export rter er of toba tobacc cco o in the the worl world. d. Presen Presently tly India India is among among top top three three produc producers ers of tobacc tobacco o in the world. world.

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Despite lower production of total produce being exported Indian exports it figures among top 10 exporters of the product in the world. In addition to   being being the larges largestt contr contribu ibutor tor to gov gover ernme nment nt coffer coffers, s, the indust industry ry also also  provides employment to more than 26mn people in the country both directly and indirectly. The Indian tobacco is largely used for making beedis and chewing products like khaini etc. tobacco is a very peculiar crop. It is grown in rain starved areas on Solis which are otherwise not suitable for any other  crop. Thus it makes use of the least resources available to it, to give a  produce which provides so much to government offers it learns of excise, exports as well as employment that today the per acre earning of farmers from a specially type of tobacco is much higher than any other crop grown in the country.

There are various types of tobacco grown in the country but most of  the exports of tobacco by our country are of five curved Virginia (FCU) type type.. Th Thee Indi Indian an toba tobacc cco o expo export rted ed,, is most mostly ly used used as a fill filler er in the the inte intern rnat atio iona nall ciga cigare rett ttes es

in fact fact like likely ly any any othe otherr agro agro-p -pro rodu duct ct,, the the

characteristics of tobacco, its taste, its aroma and other properties largely depend on the soapy or area in which it is grown. Moreover cigarettes smokers are very particular about the taste, the aroma of their cigarette   brand. So it becomes extremely necessary to maintain the blend tobacco used used for for ciga cigare rett ttee manu manufa fact ctur urin ing g to give give the the same same qu qual alit ity y prod produc uctt to consumers. This is to maintain the consistency of as of a brand.

Rece Recent nt happ happen enin ings gs and and tits tits impa impact ct on the the indu indust stry ry in cy12 cy12/0 /00 0 a number of big things happened in the tobacco industry both on domestic as well as international front. In tar nationally tobacco prices fell to extremely 24

low levels owing to excess production. Carry over of previous years stock  and dipping demand owing to high pitched protests against tobacco and cigarette manufacturers the year also witnessed a major happening on the inte intern rnat atio iona nall fron frontt in term termss of $ 14 145 5 bu bun n pena penalt lty y agai agains nstt toba tobacc cco o and and cigarette manufacturers the year also witnessed a major happening on the international front in terms.

On domestic front the year saw an excess production due to large quantity of non-regularized crop. As in India the tobacco cultivation is under  control of Tobacco board which licenses for the amount that can be grown in a part partic icul ular ar area area,, the the tota totall amou amount nt expe expect cted ed at the the end end of the the year year is approximately known. But due to curativeness of the earning per acre of  tobacco crop a number of farmers grow unauthorized crop. In domestic as well well as inte intern rnat atio iona nall mark market et,, part partic icul ular arly ly in the the back backgr grou ound nd of ov over  er   production in other countries also has resulted in a glut. As a result even the genuine tobacco growers are suffering. The tobacco board in order to protect the interested of tobacco farmers has recommended crop holiday for ey 12/00 and to add to it a proposal to introduce a levy of 1% on the sales of  cigarettes in order to fund this noble cause. Too has been made. Through Government proposals have a noble cause of helping out poor farmers and seem to be good remedial measures but these are very short-term solutions to the problem.

Presently of the total tobacco produce in India only 50% is used in the domestic market and of this domestic consumption of tobacco only 16% is used by cigarette industry. So to what extent is it justified that an industry consuming just 16% of the total domestically consumed tobacco bears the 25

 brunt of funding the cause. Through 1% levy, which on the first hand has occurred due to unauthorized crop? Moreover the noble cause seems to be meant only for a few FCV tobacco growers that too for those who should instead be punished for growing unauthorized crop.

In addition to this already the excise collection from tobacco industry is skewed against cigarette manufacturers, which account for more than 90% of the total state and central levies imposed on tobacco. If we see the contribution of various tobacco products towards ten collection from tobacco industry we find that per kg of tobacco aced in cigarettes contributes Rs 680 while per kg of tobacco used for bead manufacturing yields just Rs. 34 and  per kg of tobacco used for checking products contribute only Rs 40. in such a scenario is its justified that cigarette manufacturers be placed at altar to   prote protect ct the defaul defaultin ting g farmer farmers. s. Am of the opinio opinion n that that the propos proposal al of  imposition of 1% levy on cigarette sales is unjustified.

Regarding the crop holiday the industry has a divided opinion. Tobacco institute of India. A representative body of the industry is strongly against such a crop holiday and tome also the crop holiday doesn’t make any sense with with cons consum umer er bein being g very very part partic icul ular ar abou aboutt the the task task and and arom aromaa of the the cigarette brand which in turn depends on the type of tobacco used, the crop holiday would lead to present Indian tobacco importers to switch to other  countries and once the switch takes place it would be for a long term as no importer company would like to ricks change in flavor and taste of its cigarette brands. So the crop holiday in long term perspective would lead to

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loss of export market for Indian permanently and also instead of helping tobacco farmers is going to do more harm.

Woes of the tobacco industry: If we take a glance at the current situation of the tobacco industry we will find that the situation is just like that of a farmer killing the hen that laid golden eggs. Today the government is mulching the industry, especially the cigarette industry to such an extent that the industry would very soon die an Unna rural death. In fact the indications from trend of consumption and excise collection just corroborate these fears.

Presently tobacco industry’s contribution to excise has increased from mere mere 7.25 7.25% % in 19 1987 87-8 -88 8 to 12 12% % in 20 2000 00-0 -01 1 whil whilee the the cons consum umpt ptio ion n of  toba tobacc cco o has has decl declin ined ed from from 55 552 2 mn kg kgss in 19 1999 99.. Furt Furthe herr the the ciga cigare rett ttee consum consumpti ption on has droppe dropped d from from 23% of total total tobacc tobacco o consum consumpti ption on has increased. In US the contribution has increased from mere 2% in 1880 to 84% in 1999. Besides this, already the cigarette industry is gasping for   breath due to imposition of luxury tax or entry tax by various states ranging from 1.5% to 10%.

In such a scenario of rising taxes and decreasing consumption, any furt furthe herr impo imposi siti tion on of levi levies es or taxe taxess on the the ciga cigare rett ttee indu indust stry ry seem seemss unjustified. So I think the government should give a glance to these aspects and should try to see the situation from cigarette industry’s point of view  before finalizing any proposal.

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India is the third largest producer of tobacco in the world after china and USA. Through it occupies a mere 0.25 per cent of the cropped area in the country. It contributed Rs 507 crores to the foreign exchange earnings and Rs. 3200 crores to the exchequer by way of central excise during 199293. Further it provides employment to millions of people both directly and indirectly. Despite playing such a vital role in the economy the industry face facess many many cons constr trai aint ntss for for it deve develo lopm pmen ent. t. Incr Increa easi sing ng prod produc ucti tivi vity ty,, improving the quality, better marketing practices of non virgin tobacco and a more more reti retina nall exci excise se po poli licy cy on ciga cigare rett ttes es woul would d help help the the grow growth th of the the industry as well as meet the challenges of the future.

The Tobacconist is: Tobacco needs a country like India. Hot climate fertile soil plenty of  rain and it needs a manufacture like so partial exports. Quality-conscious. Service oriented. With a ginger upon the place of the market in India.

An enterprise that began in 1972 as our modest family business. Has now grown in to a giant exporter of tobacco to world-renowned clients. The tobacco we trade in is subjected to a series of rigorous quality tests before  being sent to our customers. The result- a product purest in grand, richest in flav flavor or the the toba tobacc cco o cons consig ignm nmen entt is care carefu full lly y pack packed ed in tamp tamper er-p -pro roof  of  containers and shipped to the destination. Immediately. The result-prompt delivery at your doorstep with the product in perfect condition according to weather.

All this comes to you from four state-of-the art factories based in western India. Connected to India’s largest seaport kandla with an annual 28

handling capacity of 25000 tones of tobacco we are in a position to meet your requirements at any time of the year. Our brands of not manufactured tobacco CAMEL, AFZAL & ISFAHAN have become favorites with our  clients the world over.

ILTD PROFILE

About ILTD:

We are 

The leaf tobacco arm of ITC ltd.



The largest buyer, processor and exporter of Indian cigarette tobaccos.



Committed to tobacco crop development through fundamental and applied research.



A prof profes essi sion onal ally ly mana manage ged d prog progre ress ssiv ivee inst instit itut utio ion n with with prov proven en leadership in the Indian tobacco industry

For For ov oveer 90 yea years, rs, we are iden identi tiffied ied with ith the int introd roduct uction ion and and develo developme pment nt of cigare cigarette tte tobacc tobaccos os of India. India. Our effor efforts ts in cigare cigarette tte tobacco development and export marketing have enable India to become the fifth largest cigarette tobacco producer and the eighth largest exporter  of cigarette type tobaccos in the world.

We have sophisticated state-of-the-art processing and storage facilities located in the cigarette tobacco growing regions of India.

29

“ILTD believes in building an enduring relationship with you to create a unique competitive advantage that will enable you to within the global market place”.

ILTD-core capabilities:

ILTD have been recognized by national and international cigarette manufacturers and tobacco merchants for our core capabilities in:

ILTD continuously strive to improve the quality of India’s offerings to international cigarette tobacco customer’s process excellence.

Our Our plan plants ts with with stat statee of the the art art tech techno nolo logy gy and and inte intern rnat atio iona nall lly y  benchmarked manufacturing manufacturing process deliver quality products all the time.

Building relationship with framers.

This helps to constantly transfer technology from the laboratory to the land for achieving superior yield and better quality (tobaccos)

Customer Focus:

Our value proposition to our customers is to create unique competitive advantage that will enable them to will global market.

Talent Management: 30

ILTD process managers with a wealth of experience, gained over  decades, in crop development, sourcing, processing, storage and logistics.

ILTD- Research and Development:

ILTD, the tobacco organisation in the Indian corporate sector with extensive R&D facilities covering all aspects of tobacco crop cultivation,   processing and packing. Our R&D center is equipped to provide our  customers with all the relevant data on chemical and physical parameters of their leaf supplies from us.

Our passion for quality and productivity enable our customers gets the  best at the most competitive price in a consistent manner.

This is borne out by:



Introduction of improved varieties.



Propagation of contemporary and cost effective agro-techniques.



Energy and ECO conservation measures.



Use of altern alternati ative ve source sourcess of energy energy-ag -agro ro wastes wastes (briqu (briquett ettes es from from coffee husk and paddy husk) and solar energy.



Past harvest product management.

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Our product quality emanates from our strategy of intimate involvement with tobacco farmers in India. By collaborating with world renowned tobacco technology centers and government organisations for technology and knowledge transfer. We enable the Indian tobacco farmers to adopt  best practices in use. Our R&D facilities are manned by qualified and expe experrien ienced ced

scie scient ntis ists ts

incl nclud udiing

agro agrono nomi missts, ts,

plan lant

bree breed ders, ers,

entomologists and chemists.

Our R&D unit has been accorded due recognition with the following awards.

Best research and development of new innovation Gold award.



For its contribution to farm productivity improvement through the introduction of improved varieties and propagation of contemporary and cost effective agro-techniques.

Best energy conservation implementation gold award.



For energy and eco conservation measures

ILTD-processing:

Our green leaf threshing (GLT) plants with a total capacity to process 520 metric tones per day are comparable with the best in the world. They are fully automated with the latest equipment to process and deliver 100 million

32

kegs of high quality tobaccos every year. It is no surprise that they enjoy ISO 9002 and ISO 14001 accreditations. We have processing lines at two locations in the southern state of AP-chirala with 3 processing lines and Anaparthi with one processing line.

We continuously work with our customers to redefine product quality specifications to meet the requirements of new generation cigarette making machinery. Our plants use internationally approved methods for ensuring  product quality.

Environment, health and safety are our prime concerns we spare no effort to ensure an eco-friendly work environment. environment. Our endeavors have been rewarded with



 National safety award from the British safety council



Swards of Honor from the British safety council British standard 7750



ROSP ROSPA A Gold Gold Awar Awards ds from from the the Roya Royall soci societ ety y or prev preven enti tion on of  accidents



Golden peacock Environment management Award from the World environment foundation.



Rajiv Gandhi national Government of India.



Special commendations safety certificate from the ministry of labor  Government of India.

We are the first in the world among all the GLT’s to be accredited with ISO 14001 environmental certification. 33

Our processing plant at Chirala is the first unit in India to receive the connected social accountability standard certification (SA 8000).

The Chirala plants have also been accredited with the OHSAS 18000-199 certificate.

ILTD-Logistics:

Our in-house ware housing facilities are benchmarked to international standards for hygiene and in is station control.

We posses very large warehousing capacity to stock around 100 m.kg of finished product. We also manage our customer’s inventories by shipping out as per their manufacturing schedules (just in time delivery)

We are an ideal ideal “one-s “one-stop top-sh -shop” op” for for the finest finest of Indian Indian qualit quality y tobaccos, our large inventory enables customers to choose from a range of  grades and varieties any time during the year, no order is too small for us, be it 10 tones or 10000 tones. We ensure in comparable service to all our  customers’ world wide at all times.

ILTD- The people:

Om ILTD, we firmly believe that the leaf business is a relationship  business and it is our people, more than any other resource, which enable us 34

to comp compet etee and and win win in the the mark market et plac placee with with ou ourr cust custom omer ers. s. In ou our  r  employ employees ees we value value their their abilit abilities ies to create create,, judge, judge, imagin imaginee and build build relationship and these values drive our people to achieve superior results year after year.

Our Our hu huma man n reso resour urce ce syst system emss prac practi tice cess are are desi design gned ed such such as to  promote and nature a work culture that to steers excellence, innovation, competence and contribution continuous, investment in capability building ensure that our people remain at the forefront in customer responsiveness. Sustaining ILTD’s leadership in the leaf business by combining the virtues of tradition with modernity, and delivering goods and services efficiently with a personal touch.

If there is a one key to superior business performance, it is our ability to turn the perceptions, capabilities and relationships, of our people into the   bui build ldin ing g bloc blocks ks of the the orga organi nisa sati tion on.. Our Our trac track k reco record rd,, so far, far, stan stands ds testimony of the organisation and the future will be no different.

ILTD-Strengths:

As an organisation in the tobacco business for more than a decades. The strengths we posses will help customers realize several tangible benefits.



A mark market et lead leader er,, sour sourci cing ng more more than than 50 50% % of all all ciga cigare rett ttee type type tobaccos in India.



Economies of scale, to offer competitive advantage to our customers.

35



Largest processor, with 520 tons per day state of the art technology comparable to the best in the world.



Capa Capabl blee of “Any “Any time time,, any any vari variet ety y and and any any qu qual alit ity” y” deli delive very ry of  tobacco in different product forms.



Huge Huge ware ware ho hous usin ing, g, with with the the best best py pyth thon on-s -san anit itar ary y and and hy hygi gien enee systems, to stock up to 100 m.kg and facilitate just in time deliveries to our customers.



Prompt and efficient pre-post sales service.



Bein Being g part part of ITC ITC ltdltd-th thee larg larges estt ciga cigare rett ttee manu manufa fact ctur urin ing g and and marketing company in India, our people have the expertise across the chain from seed to smoke to understand your concerns.



It enabled to deliver a consistent quality product at a competitive  price.

ITC Limited – ILTD Division, Anaparthi Human Resources Policy.

We are are the the team team of ITC ITC limi limite tedd-IL ILTD TD divi divisi sion on,, Anap Anapar arth thi, i, are are committed to develop an informational and inspirational culture that enables superi superior or perfor performan mance ce of employ employees ees and the unit unit throu through gh benchm benchmark arkble ble human resource systems and procedures.

The human resources policy of the unit focuses on:

36



Relieving that employees are its major assets and fasters the full realization of individual potential through providing developmental opportunities by encouraging and rewarding innovativeness.



Keeping Keeping work work environm environment ent conductive conductive to employees’ employees’ involvem involvement ent and communication both informal and two way communication.



Valuing ideas of employees and gives employee a space to executive them.



Keeping all employees well informed, trained, empowered and giving them them the the free freedo dom m to take take AGLT AGLT go goes es thro throug ugh h inno innova vati tion on and and improvement.



Deve Develo lopi ping ng a clim climat atee of coop cooper erat atio ion n and and coll collab abor orat atio ion n amon among g employees and the management.



Beli Believ evin ing g that that care career er grow growth th is dete determ rmin ined ed by comp compet eten ency cy and and  performance.



Aligning people with unit’s strategies to build culture of stretch and innovation there by enhance contribution.

THE ITC PROFILE

ITC is one of the idea’s foremost private sector companies with a market capitalization of over us $13 billion and a turnover of $3.5 billion. Rated among the world’s best big companies by forces magazine and among idea’s most respected companies by business world. ITC ranks third in pretax profit among India’s private sector corporations.

37

ITC has a diversified presence in cigarettes, hotels, paper boards and spec specia ialt lty y

pap papers, rs,

pack packaagin ging,

agr agri-b i-busi usiness ness,,

pack ackages ages

foo foods

and and

confectionery, information technology, branded pares, greeting cards, safety matches and other FMCG products. While ITC is an out standing market lead leader er in its its trad tradit itio iona nall bu busi sine ness ss of ciga cigare rett ttes es,, ho hote tels ls,, pape paperr bo boar ards ds,,  packaging and Agro-exports, it is rapidly gaining market share even in its nascent businesses of packaged food and confectionery, Branded apparel and greeting cards.

As one of India’s most valuable and respected corporations. ITC is wide widely ly perc percei eive ved d to be dedi dedica cate tedl dly y nati nation on-o -ori rien ente ted d Chai Chairm rman an Y.C. Y.C. Deveshwar calls this source of inspiration “a commitment beyond market”. In this source of inspiration believes that its aspiration to create to enduring value for the nation provides the motive force to sustain growing share holder value. ITC practices this philosophy by not only driving each of its   businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of  which it is a part”.

ITC’s diversified status originates from its corporate strategy aimed at crea creati ting ng mult multip iple le dive divers rs of grow growth th anch anchor ored ed on its its time time-t -tes este ted d core core compet competenc encies ies:: distri distribut bution ion reach, reach, superi superior or brandbrand-bui buildi lding ng capabi capabilit lities ies,, electi electives ves supply supply chain chain manage managemen mentt and acknow acknowled ledged ged servic servicee skills skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets of in India.

38

ITC’s diversified status originates from its corporate strategy aimed at crea creati ting ng mult multip iple le dive divers rs of grow growth th anch anchor ored ed on its its time time-t -tes este ted d core core competencies.

ITC’s Agri-business is one of India’s largest exporters of agricultural  products. ITC is one of the country’s biggest foreign exchange corners (US $2.4 $2.4 billio billion n in the last last decade decade). ). The compan company’s y’s ‘e-co ‘e-coupl uple’ e’ initia initiativ tivee is enabling enabling Indian Indian agricultu agriculture re significan significantly tly enhance enhance its competitiv competitiveness eness by empo empowe weri ring ng Indi Indian an farm farmer erss thro throug ugh h the the po powe werr of the the inte intern rnet et.. Th This is transformational strategy, which has already become the subject matter of a case study a Hayward Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the company’s marketing reach.

ITC’ ITC’ss whol wholly ly owne owned d info inform rmat atio ion n tech techno nolo logy gy subs subsid idia iary ry,, ITC ITC InfoTech India Limited, is aggressively pursuing emerging opportunities in  providing end-to end IT solutions, including e-enabled services and business  process out sourcing.

ITC production facilities and hotels have won numerous national and intern internati ationa onall awards awards for qualit quality, y, produ producti ctivit vity, y, safety safety and enviro environme nment nt management system. ITC was the first company in India to be rated for  corporate Governance by ICRA, an associate of moody’s investors service, which accorded it the second highest rating, signifying “a high level of  assurance on the quality of corporate governance”.

39

ITC employs over 20000 people at more than 60 locations across India India ranked ranked among among India’ India’ss most most valuab valuable le compan companies ies by the ‘Busin ‘Business ess toda today’ y’ maga magazi zine ne.. ITC ITC cont contin inuo uous usly ly ende endeav avor orss to enha enhanc ncee its its weal wealth th generating capabilities in a globalizing environment to consistently reward more than 450000 shareholders, fulfill the aspirations of its stakeholders and meet meet societ societal al expect expectati ations ons.. This This over-a over-arch rching ing vision vision of the compan company y is expres expressiv sively ely captur captured ed in its corpor corporate ate positi positioni oning ng statem statement ent.. “Endur “Enduring ing value for the nation, for the shareholders.

History of ITC Limited:

ITC ITC was was inco incorp rpor orat ated ed on Augu August st 24 24,, 19 1910 10 un unde derr the the name name of  “imperial tobacco company of India limited”. Its beginnings were humble, a humble based office on Radha bazer lane, Kolkata, was the center of the company’s existence. The company celebrated its 16 th birthday on August 24, 1926 by purchasing the plot of land situated at 37 chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs. 310000, this decision of the company was historic in more ways than one. It was to mark the  beginning of a long and eventful journey into India’s future. The company’s headquarter building, Virginia future. The company’s which came up on that  plot of land two years later, would go on to become one of Kolkata’s most venerated land marks.

40

The company’s ownership progressively indinised and the name of  the company was changed to ITC Limited in 1974. in recognition of the company’s multi business portfolio encompassing a wide range of business cigarettes cigarettes and tobacco, tobacco, hotels, hotels, informati information on technolog technology, y, packaging packaging,, paper    board boardss and specia specialty lty papers papers,, Agro-e Agro-expo xports rts,, foods foods lifest lifestyle yle retail retailing ing and greeting gifting and stationery. The full stops in the company’s name were remo remove ved d effe effect ctiv ivee Sept Septem embe berr 18 18,, 20 2001 01.. Th Thee comp compan any y no now w stan stands ds rechristened “ITC limited”.

About ITC Limited:



Thou Th ough gh the the firs firstt six six deca decade dess of the the comp compan any’ y’ss exis existe tenc ncee were were  primarily devoted to the growth and consolidation of the cigarettes and leaf tobacco business, the seventies witnessed the beginnings of a corporate transformation transformation that would user in momentous changes in the life of the company.



ITC’s packaging and printing business division, was set up in 1925 as a strategic backward integration for ITC’s cigarettes business. It is today India’s most sophisticated packaging house.



In 1975 the company launched its hotels business with the acquisition of a hotel hotel in Chenna Chennaii which which was rechri rechriste stened ned”IT ”ITC-w C-welc elcomg omgrou roup p Hotel Cholas”. The objective of ITC’s entry into the hotel business was rooted in the concept of creating value for the nation. ITC choose the hotels business for its potential to earn high levels of foreign exchan exchange, ge, create create touris tourism m infras infrastru tructu cture. re. Since Since them them ITC’s ITC’s hotels hotels

41

 business has grown to occupy a position of leadership with over 65 owned and managed properties spread across India. 

In 1979, ITC entered the paper boards business by promoting ITC Bhadrachalam Paper Boards Limited, which today has become the market leader in India, Bhadrachalam paper boards amalgamated with the company effective march 13, 2002 and became a division of the company, Bhadrachalam paperboard Division. In November 2002 this division merged with the company’s tribenitissues division to form the paperboards and specialty, quality and manufacturing processes are comparable to the best in the world. It has also made an immense cont contri ribu buti tion on to the the deve develo lopm pmen entt of cara carapa pace ce,, an econ econom omic ical ally ly  backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004 ITC acquired the paperboard manufacturing facility of BILT industrial packaging co. Ltd (Bipco) linear Coimbatore, tamilnadu the Kauai unit allows ITC to improve customer service with reduced lead time and a wider product range.



In 1985 ITC set up surya tobacco co. in Nepal as an Indo-Nepal and British joint venture. Since inception. Its shares have been held by ITC, British American tobacco and various independent shareholders in Nepal. In August 2002. surya tobacco became a subsidiary of ITC limited and its name was changed to surya Nepal private limited



In 199 1990, 0, ITC acquir acquired ed tribun tribunee tissue tissuess Limite Limited, d, a specia specialty lty paper  paper  manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was naming the tribe tissues Division (TTD). To harness strategic and operational synergies. TTD 42

was merged with the Bhadrachalam paper Boards Division to form the  paper boards and specialty papers Division in November 2002. 

Also in 1990 leveraging its agro-sourcing competency. ITC set up the international business division (IBD) for export of agro-commodities. The division is today one of India’s largest exporters. ITC’s unique and now widely acknowledgede-chopal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 7 state covers over 3.5 billion farmers. ITC first rural mall christened choupal sagar  was inaugurated in August 2004 at shore. The year 2006 witnessed the vamping up of the company’s rural retailing network with 10 choupal sage sagerr bein being g op opeerati ration onal al in three ree stat states es of Madh Madhy ya Prad radesh esh, Mahara Maharasht shtra, ra, and uttar uttar Prades Pradesh. h. Nine Nine more more choupa choupall saagar saagar being being oper op erat atio iona nall in thre threee stat states es of Madh Madhya ya Prad Prades esh, h, will will be laun launch ched ed shortly.



In 2000, ITC’s packaging and printing business launched a line of  high quality greetings cards under the brand name “Expressions”. In 2002 20 02 the the prod produc uctt rang rangee was was enla enlarg rged ed with with intr introd oduc ucti tion on of gift gift wrappers, Autograph books and slam books. In the same year, ITC also also laun launch ched ed “exp “expre ress ssio ions ns Matr Matrub ubha hash shaa aa Verm Vermic icul ular ar rang rangee of  greeting cards in eight of premium stationery products. In 2003 the company rolled out “classmate” arrange of notebooks in the school stationary segment.



ITC also entered the lifestyle retailing business with the wills sport range of international quality relaxed wear for men and women in 2000. The wills life style attain of exclusive stores later expanded its range to include wills classis formal wear (2002) and wills club life 43

evenin evening g wear wear (2003) (2003).. ITC also also initia initiated ted a foray foray into into the pop popula ular  r  segm segmen entt with with its its men’ men’ss wear wear bran brand. d. John John play player erss in 20 2002 02.. in December 2005, ITC introduced essenza Di wills, an exclusive line of  drestige fragrance products, to select “wills lifestyle” stores. In 2006 wills life style became title partner of the country’s most premier  fashio fashion n eventevent-wil wills ls lifest lifestyle yle India India fashio fashion n week. week. That That has gained gained recognition

ITC’s Corporate Strategies:

ITC’s corporate strategies are aimed at matching its core capabilities with market opportunities to produce superior shareholders values. The key corporate strategies are:



Continue to focus on the core businesses of cigarettes and tobacco, hotels, packaging, and paperboard.



Ensu En sure re that that each each of its its bu busi sine ness sses es meet meetss the the thre threee crit criter eria ia of  sustai sustainab nabili ility, ty, namely namely market market standi standing, ng, profit profitabi abili lity, ty, and intern internal al vitality. Exit from businesses which do not meet these criteria within agreed time frame.



Ensure that each business is internationally completive in the Indian global market.



Create Create distribute distributed d leadership leadership within within the organisat organisation ion by nurturing nurturing talented and focused to management beams for each of the business.



Institute and practice a system of corporate governance appropriate to ITC’s character and constitution. Such a system of governance must 44

achi achiev evee a whol wholee some some bala balanc ncee betw betwee een n the the need need for for exec execut utiv ivee freedom for management and the requirement of a framework for  effective accountability.

EMPLOYEE PROFILE

Thee fact Th factor ory y at Chir Chiral alaa is seas season onal al as the the toba tobacc cco o crop crop is go gorg rgon on specific at different zones. During season the processing is done in three shifts. During off season, plant and facilities maintenance and modifications are done.

UNIONSED

 NON

SEASONAL

SEASONAL 45

TOTAL

Technicians Class A Class B Badli

Nil 136 1522 269

138 34 125

138 170 1647 269

Technicians category are a pool of technical qualified (Diploma/ITC) emp employ loyees ees who cate caterr to the the nee needs of prod produ ucti ction and and engi engin neer eering ing depart departmen ments ts cleric clerical al are primar primarily ily those those who mainta maintain in the accoun accounts ts and capture for mostly manual tasks in the factory and the majority are illiterate.

Each Each of the the un unio ioni nize zed d cate catego gori ries es of empl employ oyee eess has has thei theirr own own democratically union and elections are held once in two years. These office wearers are elected y their category of employees across the ICTD division with representatives for the division and for the division of operating units.

Long term agreements for spells of four years are entered into by negotiating with the elected representative of the respective category. The work requirements, the compensation package and employee welfare are finalized in the LTA

Belies, numbering 269, are the category of employees who provide absentee cover for class B employees during season. They get converted to seasonal class B employees based on requirements.

Contracted works are of two categories:

46



Regular: Pest control operations and security are being carried out by  professional competent agencies.



 Need based: Vivil works, repairs, painting, keeping tec. Licensed contractors with competencies required for their trade and trained and authorized for work in the factory, are engaged. Their work conditions are monitored to conform to contact labor related legislation and ITC guidelines for contact labor.

Training of personnel in ITC-ILTD Division, Aanaparthi:

a) Factory personnel manager/welfare manager/welfare officer are responsible for organizing various training programmes whether in house or outside external training  programmes as per training calendar finalized during the year.

 b) Training a person is arranged in-house or through outside seminars/workshops/training seminars/workshops/training programmes.

c) ITC Limited-ILTD Division is equipped with a training center having necessary facilities for conducting in-house training programme.

d) In-house is conducted by manager, training center, managers of different departments and external facility will be called depending upon the course content of the programme.

e) Yearly training plan is established and maintained for personnel of  various categories and the same is available in the personnel department.

47

f) Before starting training programme a circular/lotus notes will be sent to the all HOD’s for nominating the participants. This process will start on week before the programme is scheduled. The concerned may communicate the nominators of the candidate either through better or lotus notes. Feedback on training programme a (circular/lotus not) will be taken from the  participant immediately after completion of the programme.

Feedback on effectiveness of the organized training programme will  be taken from concerned managers/HODs/FM maximum within a month after organizing a training programme by measuring the expected Vs achieve performance and through written comments.

Selection of faculty will be done on the post feedback from the employees and rating should not be less than 60% out of 100%

Identification of training needs in ITC-ILTD Division, Anaparti.

Training needs are identified by concerned department managers on the basis of appropriate job requirements for each category of personnel as under:

The identified training needs by concerned managers will be discussed in HODs meeting and finalized in consolation with factory manager and a detailed training calendar will be prepared every year in the month of January for the programmes that are going to be conducted during the year.

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Workers:

Operating skills, behavioral progammes and EHS programmes.

Technicians:

Operation and maintenance skills, behavioral programmes, computer  awareness Programmes and EHS programmes

Staff:

Operating and supervisory skills, Behavioral Progammes computer  awareness programmes and HIS programmes.

Staff manager who sits in divisional head quarters deals training matters in respect of manager’s staff ‘X’ and ‘Y’ and senior grand employee.

RECRUITMENT AND SELECTION PRACTICES AT ITC

Human Resource Management at ITC:

HRM practice of ITC is the one among the practices followed by the large firms of India. The present chapter deals with the topic of HRM   philosophy, HRM policy and the functions of HRM department, Human resource planning process after covering these aspects the chapter will be followed by the recruitment and selection practices of the organisation.

49

HRM Philosophy:



Employees are the valuable resources of the organisation



Relati Relations onship hip betwee between n diffe differen rentt group groupss so that that work work is perfo performe rmed d effectively



Eliminating waste and improper use of human resource.

Human Resource Management Policy:



Employ Employees ees are provid provided ed with with welfa welfare re activi activitie tiess to increa increase se their  their  quality and work life



Employees are provided with necessary training facility, so as to improve their skills.



Then Then ultima ultimatel tely y result resulting ing in improv improved ed produ producti ctivit vity y and person personnel nel development.

Functions of Human Resource Management Department:

The HR Department looks after the following functions administration of the welfare facilities, reports, loans, advances, transfer, assignment etc. Deals with matter relating to recruitment and selection administration of  HRD activities, matter relating to discipline.

The Process of Human Resource Planning: 50

HRP consists of the following steps;



Analyzing the organisational plans



Deman emand d

Fore Foreccasti astin ng:

Foreca recast st

the the

over ov eral alll

huma hu man n

res resou ourrce

requirements in accordance with the organisations plans. 

Supply Supply foreca forecasti sting ng obtain obtaining ing the data data and inform informati ation on about about the the  present inventory of Human Resource and Forecast the future changes in present Human Resource inventory



Estimating the human resource requirements

Recruitment and selection practices at ITC:

ITC company recruitment and selection practice is similar to that of  the large organisations. Through these practices the HRM department is able to meet the requirements of the organisation.

Recruitment and selection process in ITC:



Position or job vacancy



Approval for filling the vacancy/manpower vacancy/manpower planning



  Not Notif ific icat atio ion n of vaca vacanc ncy y thro throug ugh h adve advert rtis isem emen ents ts/c /con onsu sult ltan ants ts or  agencies

Sources of Recruitment:

51

ITC recruitment sources are

Advertisements



Deputation or contract



Recruitment consultants/Head Helnters.



Promotions



Transfer.

From these sources ash organisation receives the applications for the specified requirements to fill the vacancy. Based upon the departments’ specification a job analysis process will be done by the HRD department accordingly.

On receiving the approval from MD and CEO the HRD initiates the   pro proce cess ss by adve advert rtis isin ing g the the loca locall news news pape paperr and and nati nation onal al pape papers rs depending upon the manpower recruitment or it may be referred to the recruitment consultants, for receiving the suitable applications.

Selection Process in ITC Interviews:

ITC ITC used used to recr recrui uitt thro throug ugh h inte interv rvie iews ws to secu securi rity ty the the suit suitab able le candidate since its inception by selecting the best required from those who are selected in the interviews. Written test was the first step in the selection   process and follows with the personal interview. The selected candidates from the written test and the personal interview have to go through group

52

discussion discussion and the best in the group group discussion discussion will be selected selected to meet the requirement.

In case the technical recruitment, practical test and selection test are conducted. The candidates who are qualified in the tests will be called for  the final interview will be done by the selection committee as constituted by the HRD. HRD will take the initiative of based on the selection committee’s report

All selected candidates will be sent on offer of employment letter, with the date of joining, pay and allowances, designation and the other terms and conditions of employment in ITC.

At the time of joining the candidate should produce the following documents of the HRD



Educational qualification



Proof of data of Birth



Experience certificate



Relieving letter from the precious organisation



Attestation forms for police verification



Reference.

Policy enquiry about the selected person is made after his interview. Medical examination is also carried out. Selection of local candidate was made particular under certain situations to meet the requirements. 53

The selected employees will be appointed on training for a period of  one year. Based on the appraisal reports, candidates will be absorbed into the suitable grade and will be on probation period of six months. After  succ succes essf sful ul comp comple leti tion on of prob probat atio ion n peri period od the the cand candid idat atee will will be confirmed subject to the appraisal report.

Manpower Planning in ITC:

1. Activi Activity ty based based mannin manning g 2. Badl Badly y Con Conce cept pt 3. Nomi Nomine neee Syst System em 4. Pool Pool Conc Concep eptt 5. MultiMulti-ski skilli lling ng and Flexib Flexibili ility ty

Manpower Planning in ITC:

Separations-



Recruitments



Deaths



Resignations



Dismissals



VRS



Transfers out etc.,



Recruitment 54



Promotions



Transfers.

CHAPTER 4 55

DATA ANALYSIS AND INTERPRETATION

Table 1 Recruiting the employee

S.No Particulars 1. Internal 2. External

No. of. Respondents 70 30 56

Percentage 70 30

Total

100

100

Interpretation: From the above table 70% of the employees are recruiting

internally and 30% of the employees are recruiting externally.

Graph – 1 Recruiting the employee

57

80 70

70

60 50

     e      g      a       t      n      e 40      c      r      e       P

30

30 20 10 0 Internal

External Particulars

Table 2 External recruitment

58

S.No 1. 2. 3. 4.

Particulars Through agencies Through reference Casual applications Da Data banks Total

No. of. Respondents 60 20 10 10 100

Percentage 60 20 10 10 100

Interpretation: From the above table 60% of the employees are through

agen agenci cies es and and 20 20% % of the the empl employ oyee eess thro throug ugh h refe refere renc nce, e, 10 10% % of the the employees from casual applications and 10% of the employees are recruiting data banks.

Graph 2 External recruitment

59

70

60

60

50      e      g 40      a       t      n      e      c      r      e 30      p

20

20

10

10

10

0 Through agencies

Through reference

Casual Data banks applications

Particulars

Table 3 Recruitment policy

60

S.No 1. Yes 2. No

Particulars

Total

No. of. Respondents 100 100

Percentage 1 00 100

Interpretation: from the above table 100% of the employees said ‘Yes’

about the recruitment policy in the organisation?

Graph 3 Recruitment policy

61

120

100

100

80 e g a t n e 60 c r  e P 40

20

0

0 Yes

No Particulars

Table 4 Informing the vacancy position

S.No Particulars 1. Through word of mouth

No. of. Respondents 10 62

Percentage 10

2. 3.

Notice board Department heads Total

60 30 100

60 30 100

Interpretation: from the above table 60% of the respondents responded

about the information of vacancy position is through notice board, 30% said through department head and 10% said through word of mouth.

Graph 4 Informing the vacancy position

63

70 60

60

50      e      g 40      a       t      n      e      c      r      e 30       P

30

20

10

10

0 Through word of mouth

Noti otice boar board d

Depar epartm tmen entt heads

Particulars

Table 5 Identification Identification candidate for recruitment

64

S.No Particulars 1. Through adds 2. Internet 3. Consultants Total

No. of. Respondents 60 30 10 100

Percentage 60 30 10 100

Interpretation: From From the the abov abovee tabl tablee we conc conclu lude ded d that that 60 60% % fo the the

respon responden dents ts recrui recruited ted throug through h ads and 30% fo the candid candidate atess recrui recruited ted internet and 10% of the candidates recruited consultants.

Graph 5 Identification Identification candidate for recruitment

65

70

60

60

50      e      g 40      a       t      n      e      c      r      e 30       P

30

20 10

10

0 Through adds

Internet Particulars

Table 6 Manpower planning

66

Consultants

S.No Particulars 1. Department heads 2. HR department 3. Above two Total

No. of. Respondents 20 50 30 100

Percentage 20 50 30 100

Interpretation: From From the the abov abovee tabl tablee 50 50% % of the the empl employ oyee ee said said HR 

department will participate in the manpower planning, 30% of the employee said said bo both th the the depa depart rtme ment nt head headss and and HR depa depart rtme ment nt and and 20 20% % of the the employees said department heads.

Graph 6 Manpower planning

67

60

50

50

40      e      g      a       t      n 30      e      c      r      e       P

20

30

20

10

0 Department heads

HR depa departmen tmentt

Abov Above two two

Particulars

Table 7 Recruitment sources for top-level management

68

S.No 1. 2. 3. 4.

Particulars Internet Internal Search Through ads Above all Total

No. of. Respondents 25 30 30 15 100

Percentage 25 30 30 15 100

Interpretation: From the above table we concluded the recruiting top level

management 25% internet, 30% are internal search, and 30% are through ads and 15% are recruiting above all.

Graph 7 Recruitment sources for top-level management

69

35 30

30 25

30

25

     e      g      a 20       t      n      e      c      r      e 15      p

15

10 5

0 Inte Intern rne et

Inte Interrnal Search

Throu Through gh ads

Particulars

Table 8 Recruit the employee of company

70

Above Above all

S.No 1. 2. 3. 4.

Particulars Qu Quarterly Half yearly Annually Whenever required Total

No. of. Respondents 10 10 20 60 100

Percentage 10 10 20 60 100

Interpretation: From the above table, we concluded the employees 10%

quarterly, 10% half yearly, 20% annually and 60% of employee recruiting whenever required.

Graph 8 Recruit the employee of company

71

70 60

60

50      e      g 40      a       t      n      e      c      r      e 30       P

20

20

10

10

10

Quar Quarte terl rly y

Half year yearlly

0 Annually

When Whenev eve er  required

Particulars

Table 9 Regarding the present recruitment policy

72

S.No Particulars 1. Satisfied 2. Needs improvement Total

No. of. Respondents 70 30 100

Percentage 70 30 100

Interpretation: From From the the abov abovee tabl tablee we conc conclu lude ded d that that the the pres presen entt

recruitment policies are 70% satisfied, and the 30% are needs improvement of the recruitment policy

Graph 9 Regarding the present recruitment policy

73

80 70

70

60 50

     e      g      a       t      n      e 40      c      r      e       P

30

30 20 10 0 Satisfied

Needs improvement Particulars

Table 10 Improvements in the present Recruitment Policy

74

S.No 1. Yes 2. No

Particulars

Total

No. of. Respondents 90 10 100

Percentage 90 10 100

Interpretation: From the above table we concluded the improvement in the

 present recruitment policy to recruit 90% of yes and 10% of no above all for  the improvement in the present recruitment policy

Graph 10 Improvements in the present Recruitment Policy

75

100 90 90 80 70      e      g      a       t      n      e      c      r      e       P

60 50 40 30 20 10 10 0 Yes

No Particulars

Table 11 Recruitment Sources for middle-Level middle-Level Management

S.No

Particulars

No. of. Respondents 76

Percentage

1. 2. 3. 4.

Internet Through ads Consultants Above all Total

10 40 40 10 100

10 40 40 10 100

Interpretation: From the above table, we concluded the sources of middle

level management to recruit the 10% of internet, 40% through ads, 40% consultants and 10% above all for the middle level management.

Graph 11 Recruitment Sources for middle-Level middle-Level Management

77

45 40

40

40

35 30      e      g      a 25       t      n      e      c      r      e 20       P

15 10

10

10

5 0 Intern Internet et

Throu Through gh ads ads Con Consulta sultan nts Particulars

Table 12 Recruitment through campus selection

78

Abov Above e all all

S.No 1. Yes 2. No

Particulars

Total

No. of. Respondents 85 15 100

Percentage 85 15 100

Interpretation: From the above table 85% of the employees said ‘Yes’

about the campus selection in the organization and the remaining 15% said ‘No’

Graph 12 Recruitment through campus selection

79

90

85

80 70 60      e      g      a       t 50      n      e      c      r 40      e       P

30 20

15

10 0 Yes

No Particulars

Table 13 Interview’s for selecting employees

80

S.No Particulars 1. Structured 2. Unstructured 3. Stress Total

No. of. Respondents 90 10 100

Percentage 90 10 100

Interpretation: From the above table 70% of the employee said structured

interviews while selecting employee and 10% of the employee said stress in the organisation.

Graph 13 Interview’s for selecting employees

81

100 90

90

80 70      e      g      a       t      n      e      c      r      e       P

60 50 40 30 20 10

10 0

0 Structured

Unstructured Particulars

Table 14 Difficulty in recruiting employees

82

Stress

S.No 1. Yes 2. No

Particulars

Total

No. of. Respondents 100 100

Percentage 100 100

Interpretation: From the above table 100% of the employees said ‘No’

about the recruiting employee in the organisation.

Graph 14 Difficulty in recruiting employees

83

120 100

100

80      e      g      a       t      n      e      c      r      e       P

60

40

20

0

0 Yes

No Particulars

Table 15 Interviews in selection process

84

S.No Particulars No. of. Respondents 1. Preliminary interview 36 2. G.D 28 Decision Making 3. 36 interview Total 100

Percentage 36 28

36 100

Interpretation: From rom the abo bove ve tab table 36 36% % of the emplo mploy yees ees said aid

  preli prelimin minar ary y interv interview iew in select selection ion proces processs 36% of the employ employees ees said said through decision making interview and 28% of the employees said through G.D.

Table 15 Interviews in selection process

85

40 36

36

35 30

28

25

     e      g      a       t      n      e 20      c      r       E       P

15 10 5 0 Preliminary interview

G. D

Decision Making interview

Particulars

Table 16 Any hurdles in selection process

86

S.No 1. Yes 2. No

Particulars

Total

No. of. Respondents 100 100

Percentage 100 100

Interpretation: From the above table 100% of the employee said ‘No’

about the hurdles in selection process in the organisation.

Graph 16 Any hurdles in selection process

87

120

100

100

80      e      g      a       t      n      e      c      r      e       P

60

40

20

0

0 Yes

No Particulars

Table 17 Recruitment process in ITC

88

S.No Particulars 1. Excellent 2. Good 3. Fair Total

No. of. Respondents 20 70 10 100

Percentage 20 70 10 100

Interpretation: From the above table 70% of the employees said Good

about the recruitment process, 20% of the employee ‘Excellent’ and the 10% of the employees ‘Fair’ in the organisation.

Graph 17 Recruitment process in ITC

89

80 70

70 60 50

     e      g      a       t      n      e 40      c      r      e       P

30 20

20 10

10 0 Excellent

Good Particulars

Table 18 Preference about promotion

90

Fair  

S.No 1. Yes 2. No

Particulars

Total

No. of. Respondents 100 100

Percentage 1 00 100

Interpretation: From the above table 100% of the employees said ‘Yes’

about the promotion preference in the organization?

Graph 18 Preference about promotion

91

120

100

100

80      e      g      a       t      n      e      c      r      e       P

60

40

20 0

0 Yes

No Particulars

Table 19 Factors consideration

92

S.No Particulars 1. Subject 2. Willingness 3. Suitability Total

No. of. Respondents 25 20 55 100

Percentage 25 20 55 100

Interpretation: From the above table we conclude considered the selecting

25% 25 % subj subjec ect, t, 20 20% % of sele select ctin ing g will willin ingn gnes esss and and 55 55% % of sele select ctin ing g in suitability.

Graph 19 Factors consideration

93

60 55 50

40      e      g      a       t      n      e 30      c      r      e       P

25 20

20

10

0 Subject

Willingness Particulars

94

Suitability

CHAPTER 5 FINDINGS & SUGGESTIONS

95

FINDINGS

1. 10 10% % of the the resp respon onde dent ntss said said that that the the vaca vacanc ncie iess in the the inte intern rnal al organisation are known through word of mouth

2. Major Major source source for for recrui recruitme tment nt is throug through h intern internet et only.20% only.20% said that recruitment is through ads.

3. 20% of the employe employees es are not satisfie satisfied d with the recruitm recruitment ent procedure procedure

4. 20% was dissati dissatisfi sfied ed and 10% was recruit recruited ed through through the selecti selection on  procedure

5. 20% of the the employees employees said said that there there is no career career developm development ent in ITC Ltd.

6. 50% of the the employees employees reacted reacted that that they have have worked worked for for ITC for less less than one year 

7. Most Most of the recrui recruitme tment nt process process is based on referen reference ce and not on the experience and qualification

96

97

SUGGESTIONS 

Systematic and a common methodology should be opted for recruiting and selecting the employees.



The steps in the process of selection should not very from employee to employee



The system opted for remuneration should be changed



Experience and qualification should also be considered at the time of  selection



Recr Recrui uitm tmen entt shou should ld be made made in the the mann manner er,, whic which h help helpss in the the development of the organisations.



Check if the right person is being placed at the right place



Induction programme programme should be made in time, but not too late.



The process of selection should be the same for the employees of  same designation and very according to the designations.



Job rotation should be made according to the individual’s skill and qualification.

98

QUESTIONNAIRE

Name……………………………………………………………………… Employee No. …………………., Experience………………………….. Designation……………………… Department…………………………

1. How do do you recr recruit uit the the emplo employee yees? s? a)

Internal

b) External

2. If externa externall how do you you recruit recruit the the employ employee? ee? a)

Through agencies

b) Through reference

c)

Casual applications

d) Data banks

3. Is there there any recruitm recruitment ent policy policy followe followed d by your compa company ny a)

Yes

b) No

4. How will you inform the vacancy position of the job to internal conditions a)

Through word of mouth

c)

Department heads

b) Notice boards

5. What are are the major sources sources for for identificat identification ion of candidat candidates es for  recruitment? a)

Through ads

c)

Consultants

b) Internet

99

6. Who are are involve involved d in the the manpower manpower planning? planning? a)

Department heads

c)

Above two

b) HR Department

7. What are are the recruitmen recruitmentt sources sources for top-level top-level managem management? ent? a)

Internet

b) Internal Search

c)

Through ads

d) above all

8. How frequen frequently tly do the compa companies nies recruit recruit the the employee employee?? a)

Quarterly

b) Half yearly

c)

Annually

d) wh whenever required

9. What is your your level of satisfa satisfaction ction regardi regarding ng the present present recruitme recruitment nt  policy? a)

Satisfied

b) Needs Training

10.Do you feel any improvements in the present recruitment process? a)

Yes

b) No

11.What are the recruitment sources for middle level management? a)

Internet

b) Through ads

c)

Consultants

e) Ab Above all

12.Does the company deserve the campus selection? a)

Yes

b) No 100

13.Which type of interview do you follow for selecting the employees a)

Structured

b) Unstructured

14.Do you face any difficulty in recruiting the talent employees in LPG scenario? a)

15.

Yes

b) No

What type of interviews is to be conducted on selection

 process? a)

Preliminary interview

b) Group decision interview

c)

Deci Decisi sion on maki making ng inte interv rvie iews ws

16.Do you face any hurdles in selection process? a)

Yes

b) No

17.What do you think about the recruitment process in ITC Limited? a)

Excellent

c)

Fair  

b) Good

18.Do you think the competent employees are preferred to promotions? a)

Yes

b) No

19.What factors do you most consider while selecting the employees. 101

a)

Subject

c)

Suitability

b) Willingness

20.Any Suggestions--------Suggestions---------

ABBREVATIONS

1. HRM

: Hu Human Resource Management

2. HRD

: Hu Human Resource Development

3. ITC

: Indian Tobacco Company

4. ILTD

: In I ndian Leaf Tobacco Development

5. R&D

: Re Research and Development

6. TTD

: Tiber Tissues Division

7. IBD

: In International Business Division

8. FCV

: Flue Curved Virginia

9. FMCG

: Fa Fast Moving Consumer Goods

10. GLT

: Green Leaf Threshing

11. FCV

: Few Curved Virginia

12. IS

: Initial Screening

13. BPBD

: Bhadrachalam Paper Board Division

102

GLOSSARY

HRM: Human Resource Management is a series of a decision that

affect the relationship between the employees and the employers. It effects many constituents and is intended to influence the effectiveness, of the employees and employer.

Recru uitm itment ent as the proce rocess ss of searc earch hing ing for for the the Recruitment: Recr  prospective employees and stimulating them to apply for jobs in the organisation.

Dividend: The director do not recommended payment of any dividend

for the year in order to strengthen the working of the company

Preliminary Preliminary interview: interview: Preliminary selection of applicants is often

done by setting minimum standards for the job, and communicating these standards of the employees.

103

Final Interview: Interview: it is very ery impo import rtan antt of the the comp compan any. y. Sinc Sincee the the

immediate supervisor is ultimately responsible for new workers he or  she should have input the hiring decision.

Job offer: the actual hiring of an applicant constitutes the end of the

selection process. At this stage successful applicants must be notified the firms decisions.

HR communication effect: It is essential that special efforts are taken

to make human resource communication effective. These effects are need.



In adequate appreciation of need for HRC by the organisation



Tendency of keeping HR policies and practices confidential

CIPP Approach: This approach takes context, process and product for 

evaluation context evaluation

Context Evaluation:

It involves evaluation of trends needs analysis and

formulation objectives in the light of need.

involves ves evalua evaluatio tion n of determ determini ining ng po polic licies ies,, Input Input Evaluation: Evaluation: It invol  budget, schedules and procedures for organisation programmed. programmed.

104

Process Approach: It involves of preparation of reaction sheet rating

scales and analysis of relevant records.

Product Product Evaluation: Evaluation: It invo involv lves es meas measur urin ing g and and inte interp rpre reti ting ng the the

attainment of recruitment and selection process.

BIBLIOGRAPHY

Books :

Managing for the future

P.F. Drucken

Human Resource Management

P. Subba Rao

Human Resource management

K. Ashwathappa

Websites:

www.itc.ltd www.iltd.com www.hrm.co

105