A Project on

Human Resource Information System at Amul

In the subject of Organisational Behaviour

Submitted to

University of Mumbai

For Semester III of

Master of Commerce

By

Shruti Vikram

(Management 137)

Under the Guidance of

Prof Swati Chaplot

Year 2013 – 2014

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e-mail :contactus@gmail.com, degree.office@gmail.com Tel. : 26609320 Website : www.lsraheja.org.in

SADHANA EDUCATION SOCIETY’S

L. S. RAHEJA COLLEGE OF ARTS AND COMMERCE RE-ACCREDITED BY NAAC WITH ‘A’ GRADE

Juhu Road, Santacruz (West), Mumbai – 400 054.

DECLARATION BY THE STUDENTI, Shruti Vikram student of M Com Part-II Roll Number 137 hereby declare that the

project for the Paper Organisational Behaviour. Submitted by me for Semester –III

during the academic year 2013-14, is based on actual work carried out by me under the

guidance and supervision of Prof Dr Swati Chaplot.

I further state that this work is original and not submitted anywhere else for any

examination.

Signature of Student

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on Human Resource Information System at Amul submitted by Shruti Vikram student of M Com III.

This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner External Examiner Principal

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http://www.lsraheja.org.in/mailto:degree.office@gmail.com

L. S. RAHEJA COLLEGE OF ARTS & COMMERCE

Internal Assessment: Project 40 Marks

Name of the Student Class Division R.NO

First name : Shruti

Father’s Name:

Surname : Vikram

M COM

PART II

Management 137

Subject: Organisational Behaviour

Topic for the Project: Human Resource Information System at Amul

Marks Awarded SignatureDOCUMENTATIONInternal Examiner (Out of 10 Marks)External Examiner (Out of 10 Marks) Presentation (Out of 10 Marks)

Viva and Interaction (Out of 10 Marks)

TOTAL MARKS (Out of 40)

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ACKNOWLEDGEMENT

I am thankful to everyone who supported me to complete my project effectively and

moreover, on time.

I am equally grateful to my Professor Swati Chaplot. She gave me moral support and

guided me in different matters regarding the topic. She has been very kind and patient,

whilst suggesting to me the outlines of this project, and correcting my doubts. I thank her

for her overall support.

Last but not the least, I would like to thank my mother and my husband who helped me a

lot in gathering different information, collecting data and guiding me from time to time

in completing this project. Despite their busy schedules, they gave me different ideas to

help make this project unique.

Thanking you

Shruti Vikram

M.Com – II [management - 137]

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INDEX

Sr. No. PARTICULARS Page No.

1 Executive Summary 6

2 Organization Profile 7

3 Introduction 8

4 History of Amul Organization 11

5 Organization Structure 14

6 Human Resource Department 15

7 Human Resource Information System 25

8 HRM’s Changing Environment 32

9 Case Study On Human Resource Information System 36

10 Futuristic Vision 42

11 Influencing Factors of 21st Century 44

12 Conclusion 45

13 Bibliography 46

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Executive Summary

AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and

from the farmers. The AMUL gives pleasure to the farmer to charge the own price,

which was not possible in earlier years. This union was born on 14th December 1946.

The union provides facilities to its members like more return, satisfactory price,

insemination, first aid, group Insurance, cattle food at confessional price etc.

I have done case analysis on HRIS of AMUL and from that I have come to know how

organization operates and how the functions have been carried in the organization. From

this is case I have come to know how a wide organization like AMUL manages its

AMUL dairy has five main departments like finance, personnel, commercial, milk

procurement and production. The finance department does the clerical work and takes

care of inflow and outflows of the cash. The other work of finance Department is to

audit of annual work.

The personnel department handles the work regarding personnel like appointment,

recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc.

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Organization Profile

Name : Kaira District Co- Operative Milk Producers’

Union Limited, Anand.

Form : Co-Operative Sector under the Co- Operative Society Act.

Reg.Office : Kaira District Co-Operative Milk Producers Union Ltd,

Anand -3881001. Gujarat, India.

Promoters (1) Shri Tribhuvandas Patel

(2) Shri Morarji Desai

(3) Shri Vallabh Bhai Patel

(4) Dr. Varghese Kurien

Auditors : Special Auditors (Milk), Milk Audit Office Anand.

Socities : 1113.

Members : 6, 31,333.

Office Time : 10:00 A.M To 06:00 P.M.

Premises : 49.55 Acres.

Registration : 14th December, 1946.

Introduction

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Human Resource Management:

Human Resource Management has come to be recognized as an inherent part of

management, which is concerned with the human resources of an organization. Its

objective is the maintenance of better human relations in the organization by the

development, application and evaluation of policies, procedures and programmes

relating to human resources to optimize their contribution towards the realization of

organizational objectives.

In other words, HRM is concerned with getting better results with the collaboration of

people. It is an integral but distinctive part of management, concerned with people at

work and their relationships within the enterprise. HRM helps in attaining maximum

individual development, desirable working relationship between employees and

employers, employees and employees, and effective modeling of human resources as

contrasted with physical resources. It is the recruitment, selection, development,

utilization, compensation and motivation of human resources by the organization.

Human resources may be defined as the total knowledge, skills, creative abilities, talents

and aptitudes of an organization's workforce, as well as the values, attitudes, approaches

and beliefs of the individuals involved in the affairs of the organization. It is the sum

total or aggregate of inherent abilities, acquired knowledge and skills represented by the

talents and aptitudes of the persons employed in the organization.

The human resources are multidimensional in nature. From the national point of view,

human resources may be defined as the knowledge, skills, creative abilities, talents and

aptitudes obtained in the population; whereas from the viewpoint of the individual

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enterprise, they represent the total of the inherent abilities, acquired knowledge and

skills as exemplified in the talents and aptitudes of its employees.

The Amul – Meaning

AMUL means “priceless “in Sanskrit. A quality control expert in Anand suggested the

brand name “AMUL” from the Sanskrit word “Amoolya” variants, all meaning

“priceless” are found in several Indian languages. Amul products have been used in

millions of home since 1946.

Today Amul is a symbol of many things; of high – quality products sold at reasonable

prices; triumph of indigenous technology; of the marketing savvy of a farmer’s

organization and proven model for dairy development.

Motto

The main motto of AMUL is to help farmers. Farmers were the foundation stone of

AMUL. The system works only for farmers and for consumers, not for profit. The main

of AMUL is to provide quality products to the consumers at minimum cost. The goal of

AMUL is to provide maximum profit in terms of money to the farmers.

Vision

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Vision of AMUL is to provide and vanish the problems of farmers (milk producers). The

AMUL apparition was to run the organization with co-operative of four main parties, the

farmers, the representatives, the marketers, and the consumers.

Quality Policy

The motivated and devoted work force of AMUL are committed to produce whole some

and safe foods of excellent quality to remain market leaders through deployment of

quality management system, state of art technology innovation and eco- friendly

delightment of customer and betterment of milk producer.

History10

In early 1940’s a farmer in Kaira district, as elsewhere in India, derived his income

almost entirely from seasonal crops. The income from milk was paltry and could not be

depended upon. The main buyers were milk traders of Polson Ltd.-a privately owned

company that enjoyed monopoly for supply of milk from Kaira to the Government Milk

Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the

private traders.

However, when the exploitation became intolerable, the farmers were frustrated. They

collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the

freedom movement. Sardar Patel advised the farmers to sell the milk on their own by

establishing a cooperative union, instated of supplying milk to private traders. Sardar

Patel sent the farmer to Shri Morarji Desai in order to gain his Co-operation and help.

Shri Desai held a meeting at ‘Samrkha’ village near Anand, on January 4, 1946. He

advised the farmers to from a society for collection of the milk. These village societies

would collect the milk themselves and also decided prices for that which would be

profitable for them. The district union was also from to collect the milk from such

village cooperative societies and to sell them. It was also resolved that the government

should asked to buy milk from the union.

However, the government did not seem to help farmer by any means. It gave the

negative response by turning down the demand for the milk. To respond to this action of

government, farmer of Kaira district went on a milk strike. For 15 days not a single drop

of milk was sold to the traders. As a result the Bombay milk scheme was severely

affected. The milk commissioner of Bombay then visited Anand to assess the situation.

Finely he decided to fulfill the farmers demand.

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Thus their cooperative unions were forced at village and district level to collect and sell

milk on a cooperative basis, without the intervention of government. Mr. Verghese

Kurien had main interest in establishing union who was supported by Shri Tribhuvandas

Patel who convinced farmers in forming the cooperative unions at the village level. ‘The

Kaira District Co-operative Milk Producers’ Union’ was thus established in Anand and

was registered formally under section 10 of Bombay Act VII of 1925 on December 14,

1946. Since then farmers are selling all the milk in Anand through cooperative union. In

1955 it was commonly decided the sell milk under the brand name ‘Amul’.

At the initial stage only 250 liters of milk was collected every day. But with the growing

awareness of the benefits of the co-cooperativeness the collection of milk increased.

Today Amul collect 50, 00,000 liters of milk every day. As the milk is perishable

commodity it became difficult to preserve milk for a longer period. Besides when the

milk was to be collected from the far places there was a fear of spoiling of milk. To

overcome this problem the union thought to develop the chilling unit at various

junctions, which would collect the milk and could chill so as to preserve it a for a longer

period. Thus, today Amul has more than 168 chilling centers in various villages. Milk is

collected from almost 1097 societies.

With the financial help from UNICEF, assistance from the government of New Zealand

under the Colombo plan, of Rs. 50 million for factory to manufactory milk powder and

butter. Dr. Rajendara Prasad, the president of India laid the foundation on November 50,

1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul

dairy on November 20, 1955.

A plant to manufacture balanced cattle feed was formally commissioned on October 31,

1964 by Shri Lalbahadur Shastri, the Prime Minister of India. At the request of the 12

government of India, a new dairy with a capacity to manufacture 40 tons of milk powder

and 20 tons of butter a day was completed in 1963. This was meant to meet the

requirement of India’s defense forces. The dairy was declared open by Shri Morarji

Desai in April, 1965. in 1974, the Kaira Union setup a plant to manufacture high-protein

weaning food, chocolate and malted food at Mogar, about 8 km south of Anand.

In September, 1981, the second cattle feed plant at ‘Kanjari’ were started. The

succession of the co-generation project on September 11, 1985, marked a milestone on

the energy front when two gas turbine generators of 1.5 MW each based on natural gas,

were commissioned. On October 31, 1992, Dr. V. Kurien chairman, National Dairy

Development Board, laid the foundation of Kaira Union’s third dairy with a processing

capacity of 6.5 lakh liters of milk a day. Work on the third dairy and cheese plant at

‘Khatraj’ with capacity for 20 Metric Ton of cheese per day, began in February, 1994.

Also in 1994, Kaira Union put up bread spread plant at ‘Mogar’ with the assistance from

National Dairy Development Board.

Organization Structure of Amul

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Board of Director

Chairman

Managing Chairman

General Manager

Assistant General Manager

Manager

Deputy Manager

Assistant Manager

Senior Executive

Senior Officer

Senior Assistant

Workers

Grade (A to E)

Human Resource Department

Introduction:

According to Scoot Clothier and Spriggel Human resource management as the branch of

management which is responsible on a staff basis for concentrating on those aspects of

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relationship of management to employees and employees to employees and with the

development of the individual and the group. The objective is to attain maximum

individual between employer and employees and effective molding of human resources

as contrasted with physical resources.

Personal (Human resource) management plays a very important role for any

organization. The firm having all types of resources like machines, materials, money,

information etc. will not be success in business without effective manpower. Human

capital is the greatest assets of business enterprise and manpower management is the

most important and crucial job because the managing group is the heart of the company.

Human resource department plays most important role in establishing good relation and

harmony among all.

Total Employees in Amul

15

No of Shift:

• 1st shift time: 08:30 A.M to 04:30 P.M

• 2nd shift time: 04:30 P.M to 12:30 A.M

• 3rd shift time: 12:30 A.M to 08:30 A.M

AUTHORITY NO. OF EMPLOYEES/WORKERS

Manager 48

Assistant 101

Officers 180

Workers 846

Total 1175

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Function of Human Resource Department

1. RECRUITMENT AND SELECTION

2. TRAINING AND DEVLOPMEN

3. PERFORMANCE APPRAISAL

4. SALARY AND WAGE ADMINISTION

5. EMPLOYEE TURNOVER

6. COMPENSATION

7. INDUSTRIAL RELATION

8. FACTORE ACT

9. INDUSTRIAL DISPUTE ACT

10. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

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Recruitment and Selection Function

Recruitment:

There are two types of Recruitment sources followed by Amul:

EXTERNAL SOURCE

INTERNAL SOURCES

Internal Sources :

Internal sources include personnel already on the payroll of the organization.

Present Permanent Employees.

Employee Referrals

Former Employee

External Sources :

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These sources lie outside the organization In Amul they consider following

sources for recruitment:

Campus Interview

Unsolicited Application

Application Blank

Placement Agencies

Selection:

Selection procedure is concerned with securing relevant information about the applicant.

The main objective of selection process is to determine whether an applicant meets the

qualification for a specific job and choose the application that is most likely to perform

well in the job. The Selection process in AMUL is as under

Vacancy in any department

Approval from M.D

Advertisement

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Collection of application

Securitize the application

Interview

Medical checkups

Selection

After selection, the employees generally have probation period. In AMUL

probation period is different for different type of employees. Probation period for

officers is 12 months, 6 months for clerical employees and 3 month for workers.

Training and Development

It is a subsystem of an organization. It ensures that randomness is reduced and learning

or behavioral change takes place in structured format. Training is the process where the

work related knowledge, skills and attitude are given to new employees. By which they

aware the policies rules and increase technical and manual efficiency and create of

responsibility.

AMUL has accepted these methods for the training

1. On the job method

2. Off the job method

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3. In house training

4 Out house training

T raining Procedure in Amul

Identification of need of Training

↓

Module Preparation

↓

Selection of Employee for the Training

↓

Training

↓

Feedback

Performance Appraisal

Performance appraisal is the process of evaluating the performance and qualification of

employees in terms of the requirement of the jobs for which they are employed. It is

highly useful in making decision regarding the promotion, transfer, wage and salary

administration etc. The AMUL adopts the following appraisal system

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Final confirmation with the recommendation by the divisional heads comes from the

MD on annual basis. His work is evaluated by Check list Method of Performance

Appraisal. These are a various method used to appraise the performance of an employee.

In Amul the following methods are used

Self Appraisal

If individuals understand the objectives they are expected to achieve the standards by

which they are to be evaluated they are to a great extent in the best position to appraise

their own performance .in this method employee himself.

Promotion Period Appraisal For

1 year Managers

3 year Officers

1 year Workers

1.5 year Temporary workers

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Manager’s Appraisal

The general practice is superiors appraise the performance of their subordinate. Other

supervisors, who have close contact with employee‘s work may also appraise with a

view to provide additional information. A higher – level manager appraise the

employees for their performance.

In Amul various attributes consider for the appraisal of employee.

• Job knowledge

• Work output

• Quality of work

• Interest in work

• Initiatives

• Past records

• Seniority

This appraisal is also the rating scale. Method appraiser also appraised employee by

following.

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Outstanding

Good

Satisfactory

Poor

The overall assessment is done through above rating and also the comment of reviewing

officer is included. Apart from this the performance in liked allowance is provided in

relation with performance that is,

25%

50%

100%

Not allowed

This is provided by and under knowledge of under Managing Director Generally in

Amul on base of performance appraisal employee of managerial level gets specials

allowance. While for workers they get promotions

Wages and Salary

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A common method is followed for the wage and salary administration

according to “Muster roll “.

Timekeeper sends that muster roll to the account department for attendance of

each and every employee. This will analyze and entered in the computer.

After this salary is calculated for each employee through computer according

to that they prepare salary sleep of employees.

Wage Structure (Approx)

Post Grade Pay scale

Managing Director Manager 21000-28000

General Manager Manager 15000-21000

Assistant General Manager Manager 7000-15000

Assistant Clerical 2500-7500

Senior clerk Worker 2000-5000

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Human Resource Information System of Amul

Human Resource Information System (HRIS) is a systematic way of storing data and

information for each individual employee to aid planning, decision making, and

submitting of return and reports to the external agencies.

• It merges HRM as a discipline and in particular it’s basic HR activities and

processes with the information technology field.

• It can be used to maintain details such as employee profiles, absence reports, salary

administration and various kinds of reports.

Objectives:

• To understand, how human resource being managed by the organization.

• To study the maintenance of the records of their employees.

• To study if organization is using ICT for HR functions and to maintain

database.

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• To study the users perception about HRIS

Definition:

“A Human Resources Information System is a system that lets you keep track of all your

employees and information about them. It is usually done in a database or, more often, in

a series of inter-related databases “

Human Resources are an organizational function that deals with issues such as

recruitment and selection, training, appraisal, compensation and performance

management of the employee.

Information System:

A system, whether automated or manual, that comprises people, machines, and/or

methods organized to collect, process, transmit, and disseminate data that represent user

information.

Introduction:

An information system is an inter-related set of procedures and processes to provide

information for decisions. Information is data that have been processed so that they are

meaningful. It adds to the representation of an idea. It corrects and confirms previous

information. It tells us something which we did not know. Many organizations have

computer-assisted information systems. Thus HRIS is a system that enables storing of

information of Human Resource in every aspect such as Personal, Academic,

Qualification, Family, Medical, Career and Performance Evaluation, Training &

Development & Wage and Salary of individuals. Unlike manual systems the HRIS

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enables availability of all such information in a single screen. Reports on various

parameters can be generated with ease. Moreover reliability of such records is assured.

• An information system especially developed for human resource management is

referred to as HRIS – a human resource information system.

• Human resource management, when it doesn’t include the human resource planning

function, requires only a basic HRIS. If this basic HRIS is computer-supported, it is

likely to include transition processing system or management information system.

• An information system provides for the accumulation by gathering, processing by

deleting extraneous information, deciding among divergent information and putting

the information in a logical arrangement that promotes its understanding.

• Finally, the information is stored in a readily accessible configuration.

HR Information System Includes:

This system includes the employee name and contact information and all or some of the

following:

• Department

• Job Title

• Grade

• Salary

• Salary History

• Position History

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• Employee details (Personal & Professional)

• Employee Posting information on appointment /transfer

• Employee promotion/ appointment information

• Employee Service verification details

• Employee Leave Information including(Leave available , leave availed,)

• Employee confidential report information

• Employee Training information

Needs of HR Information System

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• Human resource manager requires considerable amount of data for planning and

control of human resources and for this there is a strong need of a sound

information system.

• Efficiently storing each employee information and data for reference- personal

data management, pay roll accounting, benefits management and planning.

• Enabling informed decision making in day-to-day personnel issues, planning,

budgeting, implementing and monitoring Human Resource function.

• Facilitating decision making in areas like promotion, transfer, nomination,

settling employees provident funds, retirement, gratuity, LTC, and earned leave

compensation

• Cutting costs.

• Improving accuracy

Advantages of HR Information System

Reduction in the amount and cost of stored human resource data.

Availability of timely and accurate information about human assets.

Developing of performance standards for the human resource division.

More meaningful career planning and counselling.

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Effectiveness of HRIS

The key to the effective planning of manpower and improvement of people productivity

is an effective HRIS. However, in order to be effective an information system must take

into account the following:

Adequacy of information: Too much or too little information, both lead to

defective decision-making. Therefore, there must be some understanding

regarding what information and in how much detail and covering what periods

should be maintained.

Specificity: Even where it is not possible to quantify the information, the

information should be made as specific as possible.

Relevance: Information is to be managed in the light of the requirements of the

decision makers. Therefore, HRIS focus on the needs of the decision-makers and

stakeholders rather than on what is interesting or easily available or palatable to

the people. The system, therefore, must also have the built in capability for

deletion and updating of data.

Comprehensiveness: The information should be complete from the point of

view of the decision-maker giving details of who, what, how, when, where and

why.

Reliability: Since the information is going to be the basis of critical decisions, it

must satisfy the requirements of validity and reliability. Moreover, to ensure

effectiveness, not only should the information provided be relevant and reliable

but the delivery system should also be the most satisfying and cost effective. A

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wealth of information but not accessible when needed or available at an

inhibiting personal cost in terms of energy and time, is of hardly any use.

It Supported HRIS

In today’s enterprises, HRIS are typically Information Technology (IT) supported

systems. This is not to say that without IT HRIS cannot be introduced. But information

technology allows much greater effectiveness of HRIS than a manual system. Some of

the deficiencies of the Manual Systems which an IT based HRIS overcomes to a

considerable extent

Convenience: In IT enabled systems, data entry, update and retrieval are all

significantly faster. Redundant data may be easily replaced.

Integration: A computerized system can greatly reduce fragmentation and

duplication of data. All data can be stored in a single system to enable retrieval of

complete picture of each employee or of each defined parameter in a desired

number of permutation and combinations. Moreover, depending on the

requirement, reports can be generated in different ways that provide an accurate

picture. Verification of data and error rectification are also relatively easy in

computerized systems.

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Multi-User Benefit

Different people can access the data simultaneously, which facilitates quick

dissemination across geographical and structural boundaries and facilitates faster

decision-making. Moreover, on-line data entry is possible that leads to automatic up-

dating of data resulting into better informed decisions. However, to obtain these

advantages, it is important that the knowledge and expertise is available to the

organization, internally or from outside, to develop and tailor- make the system to suit

the organization’s unique needs.

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HRM in a Changing Environment

Environmental challenges refer to forces external to the firm that are largely beyond

management’s control but influence organizational performance. They include: rapid

change, the internet revolution, workforce diversity, globalization, legislation, evolving

work and family roles, and skill shortages and the rise of the service sector.

Six important environmental challenges today are:

a) Rapid change,

b) Work force diversity,

c) Globalization,

d) Legislation,

e) Technology

f) Evolving work and family roles,

g) Skill shortages and the rise of the service sector

Rapid Change

Many organizations face a volatile environment in which change is nearly constant. If

they are to survive and prosper, they need to adapt to change quickly and effectively.

Human resources are almost always at the heart of an effective response system. Here

are a few examples of how HR policies can help or hinder a firm grappling with external

change.

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Work Force Diversity

All these trends present both a significant challenge and a real opportunity for managers.

Firms that formulate and implement HR strategies that capitalize on employee diversity

are more likely to survive and prosper.

Globalization

One of the most dramatic challenges facing as they enter the twenty-first century is how

to compete against foreign firms, both domestically and abroad. Many companies are

already being compelled to think globally, something that doesn't come easily to firms

long accustomed to doing business in a large and expanding domestic market with

minimal foreign competition. Weak response to international competition may be

resulting in upwards layoffs in every year. Human resources can play a critical role in a

business's ability to compete head-to-head with foreign producers. The implications of a

global economy on human resource management are many.

Legislation

Much of the growth in the HR function over the past three decades may be attributed to

its crucial role in keeping the company out of trouble with the law. Most firms are

deeply concerned with potential liability resulting from personnel decisions that may

violate laws enacted by the state legislatures, and/or local governments. These laws are

constantly interpreted in thousands of cases brought before government agencies, federal

courts, state courts, and t Supreme Court.

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How successfully a firm manages its human resources depends to a large extent on its

ability to deal effectively with government regulations. Operating within the legal

framework requires keeping track of the external legal environment and developing

internal systems (for example, supervisory training and grievance procedures) to ensure

compliance and minimize complaints. Many firms are now developing formal policies

on sexual harassment and establishing internal administrative channels to deal with

alleged incidents before employees feel the need to file a lawsuit.

Technology

The world has never before seen such rapid technological changes as are presently

occurring in the computer and telecommunications industries. One estimate is that

technological change is occurring so rapidly that individuals may have to change their

entire skills three or four times in their career. The advances being made, affect every

area of a business including human resource management.

Evolving Work and Family Roles

More and more companies are introducing "family-friendly" programs that give them a

competitive advantage in the labor market. These programs are HR tactics that

companies use to hire and retain the best-qualified employees, male or female, and they

are very likely to payoff. For instance, among the well known organizations / firms, half

of all recruits are women, but only 5% of partners are women. Major talent is being

wasted as many women drop out after lengthy training because they have decided that

the demanding 10- to 12-year partner track requires a total sacrifice of family life.

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These firms have started to change their policies and are already seeing gains as a result.

Different companies have recently begun offering child-care and eldercare referral

services as well to facilitate women workers as well as are introducing alternative

scheduling to allow employees some flexibility in their work hours.

Skill Shortages and the Rise of the Service Sector

Expansion of service-sector employment is linked to a number of factors, including

changes in consumer tastes and preferences, legal and regulatory changes, advances in

science and technology that have eliminated many manufacturing jobs, and changes in

the way businesses are organized and managed.

Service, technical, and managerial positions that require college degrees will make up

half of all manufacturing and service jobs by 2000. Unfortunately, most available

workers will be too unskilled to fill those jobs. Even now, many companies complain

that the supply of skilled labor is dwindling and that they must provide their employees

with basic training to make up for the shortcomings of the public education system. To

rectify these shortcomings, companies currently spend large amount year on a wide

variety of training programs.

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A Case Study of Human Resource Information System at Amul

Human resource information system, that enables the organization in collecting, storing,

maintaining, retrieving and validating data needed about its human resource.

HR data are wide in their variety, and include job history (transfers, promotions, etc.);

current and historical pay details, inventories of skills and competencies, education and

training records, performance assessment details, absence, lateness, accident, medical

and disciplinary records, warning and suspensions, holiday entitlements, pension’s data

and termination records. An HRIS normally provides an electronic database for the

storage and retrieval of this data which is, at least potentially, available to anyone who

may want to access it.

The important issue however, is- how this IT system is actually used in carrying out the

HR tasks. ERP is an information system to drive the business. It enables the organization

to take systematic decision in the area of planning, execution and control based on

relevant and current information.

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AMUL uses the system named ERP ORACLE – Enterprise resource planning. The areas

of application of HRIS as follow.

1. Training management

2. Turnover analysis

3. Succession planning

4. Attendance reporting

5. Accident reporting.

AMUL uses the system centrally in the organisation and over all the plants of the Amul

which is located in various areas such as

• Mogar - chocolate plant

• Khatraj plant – cheese plant

• Kanjari plant – cattle feed plant.

The system operates in AMUL for different manner, and with the help of this system

different records are maintained with the help of ERP ORACLE. Types of record

maintained through HRIS.

• Personnel administration - It will encompass information about each employee,

such as name address, personal details etc.39

• Salary administration - Salary review procedure are important function of HRM,

a good HRIS system must be able to perform what if analysis and present the

reports of changes.

• Leave and absence recording — essentially be able to provide comprehensive

method of controlling leave/absences

• Skill inventory - It is also used to store record of acquired skills and monitor the

skill database both employee and organizational level.

• Performance appraisal — the system should record individual employee

performance, appraisal data, such as due date of appraisal, scores etc.

• Human resource planning — HRIS should record details of the organizational

requirements in terms of positions

• Recruitment — Record details of recruitment activities such as cost and method

of recruitment and time to fill the position etc.

• Career planning - System must be able to provide with succession plans reports

to identify which employee have been earmarked for which position.

• Collective bargaining — a computer terminal can be positioned in the conference

room linked to database. This will expedite negotiations by readily providing up

to date data based on facts and figures and not feelings and fictions.

• Database – In database the system records the information of the previous

applicant , who is been not selected for the job this information is useful to the

organization for next recruitment procedure for inviting for job in this way the

cost is saved by the organization because there is no need of giving

advertisement for next recruitment.

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• Service records – In service records all the details regarding promotion of an

employee , education detail of employees , personal details, in which it records

the employee No , employee working in which location etc .

• Employee summary – In employee summary the information regarding employee

is available according to grade wise, designation wise, skilled wise, and the total

information of manpower is available.

• Training – The training information of an each employee is being available

through this system because it records that when the employees is being given

training and when will be the next training is to be given to the employees .

• Time keeping: time keeping in Amul is decentralized, plant wise but with the

help of ERP system the record of absence and present record is can be available

at Amul’s head office Anand.

• Recruitment: this system is not used in any steps of recruitment process of the

Amul.

In AMUL, the HRIS is not used for the recruitment process as it is done manually in the

organization the recruitment of the is carried in the following way

Vacancy in department

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Receiving of application

Short listing of applicant

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There is no role of HRIS (ERP oracle) in the recruitment process, after the short listing

of the application; the applications which are selected are called for a personal interview

with the general manager of the AMUL. After the candidate is selected for the particular

job, the role of HRIS starts by keeping different types of records of an employee such as

a) Personal details

b) Previous organization details

c) Training details

d) Service records

e) Joining details

f) Retirement details

• HRIS is also useful in the turnover analysis of the Amul; it helps the organization to

know the number of time employees left the organization.

• HRIS, is useful in keeping the Accident details of the employees, on the basis of

this reports employees are injured due accident are been given medical facility and

financial help.

• The time keeping process of Amul is decentralized, in the various plants of Amul

like Mogar plant, Khatraj plant, Anand plant and Kanjari plant.

If any information regarding any employee absence and present of other plant is needed

by the central head office at Anand, that it is available with the help of ERP ORACLE,

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User’s Perception

After interviewing the fifteen respondents from the organization I have come to know

that the organization is using the software named “ERP ORACLE “in HRIS and by

observing and interviewing the user of the system the following data is gathered.

• The users of the system is fully satisfied with the present system ERP ORACLE

• The AMUL is using this system since last thirteen years and they are trying to

bring change by implementing new system named SAP which is under the

progress.

• With help of HRIS the organization gets the following benefits such as

1. Time saving

2. Cost saving

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3. Effective work

• HRIS helps to supports the following HR task of the Amul

1. HR development and workplace training

2. Communication

3. Career management (for employees)

4. Decision making

• The HRIS system of Amul is fully secured, so there no threat of linking of any

kind of data.

Futuristic Vision

On the basis of the various issues and challenges the following suggestions will be of

much help to the philosophy of HRM with regard to its futuristic vision:

There should be a properly defined recruitment policy in the organization that should

give its focus on professional aspect and merit based selection.

In every decision-making process there should be given proper weightage to the

aspect that employees are involved wherever possible. It will ultimately lead to sense

of team spirit, team-work and inter-team collaboration.

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Opportunity and comprehensive framework should be provided for full expression of

employees' talents and manifest potentialities.

Networking skills of the organizations should be developed internally and externally

as well as horizontally and vertically.

For performance appraisal of the employee’s emphasis should be given to 360

degree feedback which is based on the review by superiors, peers, subordinates as

well as self-review.

360 degree feedback will further lead to increased focus on customer services,

creating of highly involved workforce, decreased hierarchies, avoiding

discrimination and biases and identifying performance threshold.

More emphasis should be given to Total Quality Management. TQM will cover all

employees at all levels; it will conform to customer's needs and expectations; it will

ensure effective utilization of resources and will lead towards continuous

improvement in all spheres and activities of the organization.

There should be focus on job rotation so that vision and knowledge of the employees

are broadened as well as potentialities of the employees are increased for future job

prospects.

For proper utilization of manpower in the organization the concept of six sigma of

improving productivity should be intermingled in the HRM strategy.

The capacities of the employees should be accessed through potential appraisal for

performing new roles and responsibilities. It should not be confined to organizational

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aspects only but the environmental changes of political, economic and social

considerations should also be taken into account.

The career of the employees should be planned in such a way that individualizing

process and socializing process come together for fusion process and career planning

should constitute the part of human resource planning.

Major Influencing Factors in 21st Century

In the 21st century HRM will be influenced by following factors, which will work as

various issues affecting its strategy:

Size of the workforce.

Rising employees' expectations46

Drastic changes in the technology as well as Life-style changes.

Composition of workforce. New skills required.

Environmental challenges.

Lean and mean organizations.

Impact of new economic policy. Political ideology of the Government.

Downsizing and rightsizing of the organizations.

Culture prevailing in the organization etc.

Conclusion

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To conclude Human Resource Management should be linked with strategic goals and

objectives in order to improve business performance and develop organizational cultures

that foster innovation and flexibility. All the above futuristic visions coupled with

strategic goals and objectives should be based on 3 H's of Heart, Head and Hand i.e., we

should feel by Heart, think by Head and implement by Hand.

The times when management could arbitrarily dictate terms to the employees and tread

upon their rights is something that is not relevant anymore. With the ballooning of the

white collar workforce, it becomes necessary for organizations to pay more attention to

the needs of the employees more than ever.

In recent years, with the high levels of attrition in the service sector, it has become

imperative for firms to have a structured separation plan for orderly exits of employees.

Of course, the concept of “pink slips” or involuntary exits are another matter altogether

and involve some bitterness that results because of the employee losing his or her job. In

conclusion, it is our view that employee separations must be handled in a professional

and mature manner and though attrition is a fact that concerns everyone in the industry,

once an employee decides to leave, the separation must be as smooth as possible.

BIBILOGRAPHY

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The source for gathering information for my project.

• www.amul.co.in

• www.hrm.com

• human resource management – ashwathappa

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http://www.hrm.com/http://WWW.amul.co.in/