HR Practices at Raymond India Limited

HR practices at Raymond India Ltd TA&R Assignment 9/20/2014 Submitted By:

Aviral Aggarwal 13020841070

HR Practices at Raymond India Limited Indian Textile Industry The textile industry is the largest industry of modern India. It accounts for over 20 percent of industrial production and is closely linked with the agricultural and rural economy. It is the single largest employer in the industrial sector employing about 38 million people. If employment in allied sectors like ginning, agriculture, pressing, cotton trade, jute, etc. are added then the total employment is estimated at 93 million. The net foreign exchange earnings in this sector are one of the highest and, together with carpet and handicrafts, account for over 37 percent of total export earnings at over US $ 10 billion. Textiles,1 alone, account for about 25 percent of India’s total forex earnings. India’s textile industry since its beginning continues to be predominantly cotton based with about 65 percent of fabric consumption in the country being accounted for by cotton. The industry is highly localised in Ahmedabad and Bombay in the western part of the country though other centres exist including Kanpur, Calcutta, Indore, Coimbatore, and Sholapur. The structure of the textile industry is extremely complex with the modern, sophisticated and highly mechanised mill sector on the one hand and the handspinning and handweaving (handloom) sector on the other. Between the two falls the small-scale powerloom sector. The latter two are together known as the decentralised sector. Over the years, the government has granted a whole range of concessions to the non-mill sector as a result of which the share of the decentralised sector has increased considerably in the total production. Of the two sub-sectors of the decentralised sector, the powerloom sector has shown the faster rate of growth. In the production of fabrics the decentralised sector accounts for roughly 94 percent while the mill sector has a share of only 6 percent.

Introduction Silver Spark Apparel Ltd. is a wholly owned subsidiary of Raymond Ltd.; marking the group's foray into the Global Apparel Outsourcing market. The unit manufactures suits and formal trousers catering largely to export markets. It has state-of-the-art manufacturing facilities at the company's Doddaballapur plant, which produces 0.4 million suits, jackets and 2.0 million trousers annually. With a total built-up area of 2,00,000 square feet, the facility houses state-of-the-art manufacturing equipment. Set-up at a total project cost of USD 10 million, the plant's forte lies in the manufacture of jackets, which are at par with highly rated jackets from Italy or Japan. Fully compliant with international quality norms, our facility was audited and approved for commercial production by major American and Japanese menswear buyers. The company has a good overseas clientele base. Growth in Sales was led by a strong export order book and the appreciating dollar. The Gross Revenue of the company for FY 2014 stood at Rs. 313.91 Crore as against Rs. 225.53 Crore in the previous year. The company had a profit after tax of Rs. 22.33 Crore (Previous Year: Rs. 16.55 Crore). Silver Spark Apparel Limited has won the AEPC Export Award for 2012-2013 in the category of Highest Unit Value Exporter.

Need for a good HRD in textile industry Emerging trends in human resource requirements Technology The changes in technology would significantly affect the profile of people involved. As mentioned earlier, the share of shuttle-less looms in the Indian textiles industry is only 2-3% as against a world average of 16.9%, thereby indicating a low degree of modernisation in the Indian weaving industry. Although the Indian spinning sector is relatively more modernised, around 60% of installed spindles are more than 10 years old and open-end (OE) rotors account for only 1% of total installed spindles. In the apparel sector, India has much lower investment in special purpose machines, which perform specific functions and add value to the product. Very few export establishments have invested in cutting machines or finishing machines. The low level of technology and government incentives like TUFS would drive modernisation in the industry whereas the high power costs would be a detriment. The technological upgradation would necessitate the human resource to be trained in modern machinery and also greater in house spending on training. The shortage of labour and increasing wage rate would further induce greater automation which will lead to higher productivity. For instance, the operating hours per quintal of yarn have decreased from 77 to 25 on account of modernisation and would continue to fall. Also, the numbers of people involved in post spinning operations have come down on account of automatic cone winding machines. The modern machinery would require skilled maintenance people who have the requisite knowledge of the same. Proper maintenance would be crucial as machine down time and costly spare parts would significantly affect the performance of the industry. Quality Processes There would be increasing focus and adoption of quality and environment related processes, such as:  ƒ ISO 9001:2008  ƒ ISO 14001. Research & Development The textile industry does not have R&D as a focus area. The industry would have to invest more in both process and product R&D to maintain product and cost competitiveness. This requires industry-academia collaborations as well as individual R&D efforts by the companies. Labour laws

More flexible labour regulations will positively affect the industry. Currently, T&C industry comes under the purview of Contract Labour Act, 1970 which prohibits contract labour for the work that is perennial in nature. The exporters find it difficult to manage the seasonal and order based volatility in demand on account of this. Change in the current regulations can lead to opening up of more employment opportunities. Also, the current regulations prohibit women from being employed in night shifts. Relaxation of the same with adequate safeguards can lead to more participation of women and also help in addressing the skill shortage in the industry. Human resource related Modernisation of technology would necessitate more technical skills for operators in the production and maintenance functions across the value chain of the textile industry. The sector also needs multi-tasking/multi skilling at the operator level. The human resource at the higher levels as well as in other functions like procurement would need to possess the knowledge of various types of machines and also keep abreast with the changes in technology. The garmenting sector would be the key driver of the employment in the textile sector. majority large portion of the human resource requirement will be for operators who have the adequate knowledge of sewing machine operations and different types of seams and stitches. Although, the industry will continue to have predominantly line system of operations, designer and high end fashion exports would necessitate “make through” system of operations which would require the operators to have the ability to stitch the complete garment. The availability of merchandising and designing skills would be crucial for increasing share in export markets and tapping the potential in new markets.

HR at Raymond The successful functioning of any industry is determined by the factors like men, material, money and market. Among all these factors, manpower assumes greater significance. Manpower is the life blood of any industry. Therefore, every effort should be taken on a priority basis to keep this factor for achieving the main objectives of the industry. The textile industry occupies a unique place in our country. It is the second largest employment generator after agriculture. The textile industry being labor-intensive, is a major contribution to the country's economy with its vast potential for creation of employment opportunities in the agricultural and industrial sectors. Business organizations are made up of people and function through people. Textile industries are no exception to this. Hence, it is essential for every organization to adopt the human resource management practices in the administration. As textile industry is a labor intensive industry which is still dependent on manual labor and a skilled workforce, HRD is one of the core departments in any textile company. The working of HRD encompasses all the departments, as it has to manage all the employees tactfully. The HRD mainly follows the two aspects for managing the employees. They are:Traditional aspect Developmental aspect

The traditional aspect is related only to the old age concept of human resource management. It carries out the functions mainly of:1. Recruitment: - The employees are recruited on the basis of value and urgency. The traditional recruitment can be internal i.e. the employees are promoted or their relatives. It can also be external from some consultant management schools, by newspaper advertisement etc. 2. Payment of salaries and wages: - It is decided on the basis of the work or designation; payment of wages is done according to minimum wages act. 3. Industrial relations: - The department establishes a relation, which will be beneficial to the company in long term. Workmen compensation act and employees state insurance act is implemented. 4. Union management. 5. Agreement: - It includes the rules and regulations, which are to be followed by the staff and employees for smooth working of the company. 6. Bargaining with the union. 7. Resolving disputes: - Industrial disputes act resolves strikes and outlets. 8. Administration is also a function of the HRD department. It includes providing facilities like lunch, bus for traveling. Even providing security is the part of the administration. Administration activities are launched by government in same format.

The development aspect includes activities such as:1. Performance Appraisal: - Quarterly appraisals are done and objectives are defined for the year. In this A, B and C rating is given like excellent, very good and good. There are 4 types of appraisals:a. Self appraisal b. Superior appraisal (90°) c. Peers appraisal (180°) d. Subordinate appraisal (360°) 2. Training and development: - Training and development is provided on the basis of their needs. Training is provided either internally or externally. The training is provided mostly on job. The off job training is provided to mostly executives. 3. Engineers and HRD workers do timely study. 4. Job Rotation: - It is used to motivate the employees and to avoid monotony. 5. Grievance management: - It is to coordinate the management with the employees. Its main objective is to sole the grievances of the employees, so that they should work with complete commitment. 6. Promotion: - It is provided on the basis of sincerity and merit. Besides these facilities such as recreation to the staff and their family, transportation canteens, schemes for children, society for workman, etc. are provided.

Recruitment

Recruitment refers to the process of screening, and selecting qualified people for a job at an organization or firm, or for a vacancy in a volunteer-based organization or community group. While generalist managers or administrators can undertake some components of the recruitment process, mid- and large-size organizations and companies often retain professional recruiters or outsource some of the process to recruitment agencies. External recruitment is the process of attracting and selecting employees from outside the organization. A. Internal Sources:a. Promotions and Transfer b. Job postings c. Employee Referrals B. External Sources:a. Advertisement b. Employment Agencies c. On campus Recruitment d. Employment exchanges e. Education and training institute Internal Resourcing The company first scouts for talent within the organization to provide growth opportunities to its employees. This is done by notifying vacancies internally. This practice helps in managerial cross-functional exposure for career development and learning. Talent from Campus Raymond recruits young textile engineering graduates, textile technologists, chartered accountants, fashion technologists and MBA's only from some of India's leading Institutes. They are then rigorously trained for a period of one year, during which they are placed across different departments, before being finally placed in their area of specialization. The objective of the programme is to gauge the recruit's area of expertise and then train them to independently shoulder their responsibilities. A Mentoring programme for new inductees in the organization enables them to adapt themselves to the organization. Lateral Recruitment 'Market-skilled' employees from other companies are periodically inducted into the organization from time to time. A combined force of existing talent and induction of fresh blood helps the company to be competitive in the face of increasing business complexities.

Continuous Learning and Development Organizational excellence is achieved only through continuous investments in growth and renewal of human resources. A detailed training and development plan is drafted and implemented each year, which comprises level-wise planned interventions as well as specific need-based interventions through Training Need Analysis. This equips the team to excel in their current roles while also preparing

them for future roles. There is great emphasis on behavioural and attitudinal training apart from technical and on-the-job training.

Other hr based practices followed at Raymond silver spark apparel industries Compliance : Under HR Compliance, Buyer Audits are conducted by the would be handled and conducted by the Compliance Officers . The compliance officers mainly look into the policies which govern the industry like the Factory Act. They check the extent to which the HR-related practices of the buyers and their documents comply with legal requirements and best practices of the industry Settlement : The HR Settlement practice is basically used to set the Salary of the employees, the PF, Compensation and Benefits, and PFID. The HR mainly processes the bonuses, commissions and payrolls on a weekly/biweekly basis, for salaried/hourly employees. The HR team also handles salary queries, debt queries, final settlement checks, manual checks, stop payments/recalls, payroll funding with the banking institutions and provides daily payroll tax balancing and cash funding information to the client. Committee Meetings :.These are usually conducted by Welfare Officers from foreign countries to address these issues and they give seminars and training on Leadership Development and Inspirational speeches for the operators and staff in order to motivate them Welfare : The Welfare practice is mainly practiced to look into the welfare of the workers, operators, staff in issues related to canteen , health centres, factory premises, health centres and the purchase outlet. Labour Welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and governmental, which is not a necessity of the industry .The welfare officer plays the role of the mediator between the worker and the management. The welfare officer resolves the issues between workers and management then and there itself if both the parties agree and reach a compromise then and there itself or else take it to the next stage in case if does not finish it within that instant and moves to the court. MIS (Management Information System): A management information system (MIS) provides information that organizations require to manage themselves efficiently and effectively. Management information systems are typically computer systems used for managing In day to day work number of MIS formats is being used by this factory. By using MIS system managers can measure work, track information on the right time and in the right form. Some basic formats used by various departments in Raymond’s Silver Spark Apparel Industry have been listed below.  Fabric Store MIS  Fabric issue and receive book  Fabric inventory book  Log book for fabric quality and swatches  Fabric conciliation report  Fabric Test Report (Internal Lab Test)

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Cutting room MIS  Fabric requisition Slip  Lay slip  Cutting record book  Fusing record  Bundle record keeping  Record of End bits  Cutting machine maintenance logbook  Fusing machine check sheet

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Merchandising MIS  Sample order Sheet  Order Indent  Style Sheet  Bill of Material sheet / Material requirement  Sample submission  Production file Check list  Time and Action Calendar  Order tracking sheet  Purchase order request Sheet  Pre-production meeting format  R&D report