report on telecommunication industry at reliance
TRANSCRIPT
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INDIAN TELECOM INDUSTRY AT AGLANCE
• Overview
Telecom industry, in India can be viewed as essential for the
socioeconomic development of the country and a major integrating
factor for the diverse nation. It becomes an important factor for the
growth of our country and the development of various businesses. It
serves as an important channel to integrate the nation, especially
the vast rural section of our population.
Learning from the experience of developed countries, India
moved towards privatization of telecom by adopting Telecom Policy
of 1994. Telephone penetration in India is currently 3.5%. Cellular
phone distribution is about 0.25%.
The Union Ministry of Communication supervises all operations
of the industry and determines policy guidelines. The Telecom
Regulatory Authority of India (TRAI) is the regulatory body that
determines toll rates and act as a dispute settlement body. Manyplayers have entered the market. The major players are Bharti
Airtel, Reliance Infocomm, BSNL, Hutch and Idea. In the developed
countries, growth in telecom is in value added services, but in the
developing countries like India, the priority is on providing basic
telephony and using telecom to improve people’s lives. Circle:
Circles are defined by telecom regulations. A circle typically covers
the full state, and in some cases neighboring states, for example,Maharashtra and Goa is one circle. Similarly Jharkhand & Bihar,
Madhya Pradesh & Chhattisgarh, West Uttar Pradesh and
Uttaranchal are some other example of combined circle. UP is the
only state which is divided into two telecom circles, West UP and
East UP .In January 1995 tenders were invited for cellular services in
20 telecom circles. The circles were roughly analogous with states
of India and were divided into A, B and C categories. These
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categories ased on the perceived business potential. Table on next
page shows category wise division of circles
Category A Category B Category CMaharashtra Kerala Himmachal Pradesh
Gujarat Punjab BiharAndhra Pradesh Haryana Orissa Tamil Nadu Uttar Pradesh (West) Assam
Uttar Pradesh (East) North EastRajasthanMadhya PradeshWest Bengal
When you make calls within your own circle, they are called “Intra
– Circle” and when you make calls to places outside your own circle,
they are “Inter – Circle”.
• Technology
Since the first system began commercial operation in 1991,
Global System for Mobile Communication (GSM) has become the
globally accepted standard. Wireless service operators around the
world have selected GSM based technologies for the advanceddigital wireless communications network. Code Division Multiplexing
Access (CDMA) introduced by Tata teleservice for the first time in
2002, also revolutionized the telecom sector. Government of India
has taken steps to permit 100% Foreign Direct Investment (FDI) in
order to attract foreign players who will bring their technical
expertise and know – how.
• Size
Indian telecom industry has 50 million – line telephones
network including mobile phones. The growth rate in mobile phone
industry is almost 100% per year. However, the tele – density is just
5% as against the world average of 15%. According to Cellular
Operators Association of India (COAI) the industry, expected to be
among the world’s fastest growing mobile markets this decade.
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RELIANCE – ADA GROUP
Think Bigger Think Better
The Reliance – Anil Dhirubhai Ambani Group is among India’s
top three private sector business houses on all major financial
parameters, with a market capitalisation of Rs 100,000 crore (US$
22 billion), net assets in excess of Rs 31,500 crore (US$ 7 billion),
and net worth to the tune of Rs 27,500 crore (US$ 6 billion)
Across different companies, the group has a customer base of
over 50 million, the largest in India, and a shareholder base of over
8 million, among the largest in the world.
Through its products and services, the Reliance - ADA Group
touches the life of 1 in 10 Indians every single day. It has a business
presence that extends to over 4,500 towns and 300,000 villages in
India, and 5 continents across the world.
The interests of the Group range from communications
(Reliance Communications) and financial services (Reliance CapitalLtd), to generation, transmission and distribution of power (Reliance
Energy), infrastructure and entertainment.
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RELIANCE – ADA GROUP STRUCTURE
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COMPANIES OF ADA - GROUP
• RELIANCE CAPITAL
Reliance Capital is one of India’s leading and fastest growing
private sector financial services companies, and ranks among the
top 3 private sector financial services and banking companies, in
terms of net worth.
The company has interests in asset management and mutual
funds, life and general insurance, private equity and proprietary
investments, stock broking and other activities in financial services.
For more information click here: www.reliancecapital.co.in,
www.reliancemutual.com, www.reliancelife.co.in,
www.reliancegeneral.co.in
• RELIANCE COMMUNICATIONS LIMITED
The flagship company of the Reliance – ADA Group, Reliance
Communications Limited, is the realisation of our founder’s dream
of bringing about a digital revolution that will provide every Indian
with affordable means of communication and a ready access to
information.
The company began operations in 1999 and has over 20 million
subscribers today. It offers a complete range of integrated telecom
services. These include mobile and fixed line telephony; broadband,
national and international long distance services, data services and
a wide range of value added services and applications aimed at
enhancing the productivity of enterprises and individuals.
For more information click here: www.relianceinfo.com,
www.rcovl.com
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• RELIANCE ENERGY LIMITED
Reliance Energy Limited, incorporated in 1929, is a fully
integrated utility engaged in the generation, transmission and
distribution of electricity. It ranks among India’s top listed private
companies on all major financial parameters, including assets,
sales, profits and market capitalization.
It is India’s foremost private sector utility with aggregate
estimated revenues of Rs 9,500 crore (US$ 2.1 billion) and total
assets of Rs 10,700 crore (US$ 2.4 billion).
Reliance Energy Limited distributes more than 21 billion unitsof electricity to over 25 million consumers in Mumbai, Delhi, Orissa
and Goa, across an area that spans 1,24,300 sq. kms. It generates
941 MW of electricity, through its power stations located in
Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.
The company is currently pursuing several gas, coal, wind and
hydro-based power generation projects in Maharashtra, Uttar
Pradesh, Arunachal Pradesh and Uttaranchal with aggregatecapacity of over 12,500 MW. These projects are at various stages of
development.
Reliance Energy Limited is vigorously participating in emerging
opportunities in the areas of trading and transmission of power. It is
also engaged in a portfolio of services in the power sector in
Engineering, Procurement and Construction (EPC) through a
network of regional offices in India.
For more information click here: www.rel.co.in
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• RELIANCE HEALTH
In a country where healthcare is fast becoming a booming
industry, Reliance Health is a focused healthcare services company
enabling the provision of solution to Indians, at affordable prices.
The company aims at providing integrated health services that will
compete with the best in the world. It also plans to venture into
diversified fields like Insurance Administration, Health care Delivery
and Integrated Health, Health Informatics and Information
Management and Consumer Health.
Reliance Health aims at revolutionising healthcare in India by enabling a
healthcare environment that is both affordable and accessible through partnerships
with government and private businesses.
For more information click here: www.reliancehealth.co.in
• RELIANCE MEDIA & ENTERTAINMENT
As part of the Reliance - ADA Group, Reliance Entertainment is
spearheading the Group’s foray into the media and entertainment
space. Reliance Entertainment’s core focus is to build significant
presence for Reliance in the Entertainment eco-system: across
content and distribution platforms. The key content initiative are
across Movies, Music, Sports, Gaming, Internet & mobile portals,
leading to direct opportunities in delivery across the emerging
digital distribution platforms: digital cinema, IPTV, DTH and Mobile
TV.
Reliance ADA Group acquired Adlabs Films Limited in 2005, one
of the largest entertainment companies in India, which has interests
in film processing, production, exhibition & digital cinema.
Reliance Entertainment has made an entry into the FM Radio
business through Adlabs Radio www.big927fm.com. Having won 45
stations in the recent bidding, BIG 92.7 FM is already India’s largest
private FM radio network with 12 radio stations across the country
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as on 28th February 2007, with many more to be launched in the
coming months.
Other major group companies — Reliance Capital and
Reliance Energy — are widely acknowledged as the market leaders
in their respective areas of operation.
Reliance Energy Ltd. Reliance Mutual Fund
Harmony Reliance Communications
Reliance General Insurance Reliance Anil Dhirubhai Ambani Group
Reliance Life Insurance Reliance Portfolio Management Service
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FOUNDER
Dhirajlal Hirachand Ambani popularly known as Dhirubhai
Ambani has become corporate India’s living legend. A high school
dropout from Chorvad in Gujarat’s Junagadh district, the son of a
Gujarati schoolteacher, he went on to become the founder-patriarch
of the giant Reliance-ADA Group.
“Think big. Think differently. Think fast. Think ahead. Aim for the
best” was the philosophy of the founder, the legendary Dhirubhai
Ambani. He believed in providing ‘Better, cheaper and faster’
services.
As with all great pioneers, there is more than one unique way of
describing the true genius of Dhirubhai: The corporate visionary, theunmatched strategist, the proud patriot, the leader of men, the
architect of India’s capital markets, and the champion of
shareholder interest. But the role Dhirubhai cherished most was
perhaps that of India’s greatest wealth creator. In one lifetime, he
built, starting from the proverbial scratch, India’s largest private
sector enterprise.
When Dhirubhai embarked on his first business venture, he had a
seed capital of barely US$ 300 (around Rs 14,000). Over the next
three and a half decades, he converted this fledgling enterprise into
an Rs 60,000 crore colossus—an achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian
private company to do so.
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Dhirubhai is widely regarded as the father of India’s capital
markets. In 1977, when Reliance Textile Industries Limited first
went public, the Indian stock market was a place patronised by a
small club of elite investors which dabbled in a handful of stocks.
Undaunted, Dhirubhai managed to convince a large number of
first-time retail investors to participate in the unfolding Reliance
story and put their hard-earned money in the Reliance Textile IPO,
promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of
mutual respect and reciprocal gain in the Indian markets. Under
Dhirubhai’s extraordinary vision and leadership, Reliance scripted
one of the greatest growth stories in corporate history anywhere in
the world, and went on to become India’s largest private sector
enterprise.
Through out this amazing journey, Dhirubhai always kept the
interests of the ordinary shareholder uppermost in mind, in the
process making millionaires out of many of the initial investors inthe Reliance stock, and creating one of the world’s largest
shareholder families.
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CHAIRMAN
Regarded as one of the foremost corporate leaders of
contemporary India, Anil Dhirubhai Ambani is the Chairman of all
listed Group companies, namely: Reliance Communications,
Reliance Capital, Reliance Energy and Reliance Natural Resources
Limited.
Mr. Ambani is a Bachelor of Science from the University of
Bombay and an MBA from The Wharton School, University of
Pennsylvania, USA.
Till recently, he also held the post of Vice Chairman and
Managing Director in Reliance Industries Limited (RIL), India’s
largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive
Officer, and was centrally involved in every aspect of the
company’s management over the next 22 years.
He is credited with having pioneered a number of path-breakingfinancial innovations in the Indian capital markets. He spearheaded
the country’s first forays into the overseas capital markets with
international public offerings of global depositary receipts,
convertibles and bonds. Starting in 1991, he directed Reliance
Industries in its efforts to rise over US$ 2 billion. He also steered the
100-year Yankee bond issue for the company in January 1997.
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He is a member of:
Wharton Board of Overseers, The Wharton School, USA.
Central Advisory Committee, Central Electricity RegulatoryCommission
Board of Governors, Indian Institute of Management,
Ahmedabad
Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an
independent member of the Rajya Sabha, Upper House of India’s
Parliament a position he chose to resign voluntarily on March 25,
2006.
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INTRODUCTION TO RELIANCECOMMUNICATIONS
ADA GROUP
Reliance Communications is the flagship company of the Anil
Dhirubhai Ambani Group (ADAG) of companies. Listed on the
National Stock Exchange and the Bombay Stock Exchange, it is
India’s leading integrated telecommunication company with over 30
million customers.
The business encompasses a complete range of telecom
services covering mobile and fixed line telephony. It includes
broadband, national and international long distance services and
data services along with an exhaustive range of value-added
services and applications. The constant endeavor is to achieve
customer delight by enhancing the productivity of the enterprises
and individuals we serve.
Reliance Mobile (formerly Reliance India Mobile), launched on
28 December 2002, coinciding with the joyous occasion of the late
Dhirubhai Ambani’s 70th birthday, is among the initial initiatives of
Reliance Communications. It marked the auspicious beginning of
Dhirubhai’s dream of ushering in a digital revolution in India. Today,
it can proudly claim that they were instrumental in harnessing thetrue power of information and communication, by bestowing it in
the hands of the common man at affordable rates.
Reliance endeavors to further extend our efforts beyond the
traditional value chain by developing and deploying complete
telecom solutions for the entire spectrum of society.
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BOARD OF DIRECTORS
Shri Anil D. Ambani - Chairman
Prof. J Ramachandran
Shri S.P. Talwar
Shri Deepak Shourie
A DREAM COME TRUE
The Late Dhirubhai Ambani dreamt of a digital India — an India
where the common man would have access to affordable means of
information and communication. Dhirubhai, who single-handedly
built India’s largest private sector company virtually from scratch,
had stated as early as 1999: “Make the tools of information and
communication available to people at an affordable cost. They will
overcome the handicaps of illiteracy and lack of mobility.”
It was with this belief in mind that Reliance Communications
(formerly Reliance Infocomm) started laying 60,000 route
kilometers of a pan-India fiber optic backbone. This backbone was
commissioned on 28 December 2002, the auspicious occasion of
Dhirubhai’s 70th birthday, though sadly after his unexpected
demise on 6 July 2002.
Reliance Communications has a reliable, high-capacity,
integrated (both wireless and wireline) and convergent (voice, data
and video) digital network. It is capable of delivering a range of
services spanning the entire infocomm (information and
communication) value chain, including infrastructure and services —
for enterprises as well as individuals, applications, and consulting.
Today, Reliance Communications is revolutionising the way
India communicates and networks, truly bringing about a new way
of life.
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Reliance Communications Limited (RCOM) announced its
audited consolidated financial results for the twelve months ended
March 31, 2007.
Highlights of the financial performance in this period are:
Net Profit of Rs. 3,163 crore (US$ 734 million), higher by 612%
compared to Net Profit of Rs. 444 crore (US$ 103 million)
EBITDA at Rs. 5,720 crore (US$ 1327 million), growth of 126%.
EBITDA margin expands to 40% from 24%, with continued
expansion in profitability across all businesses – Personal, Global
and Enterprise
Revenue growth of 34% at Rs. 14,468 crore (US$ 3,357 million)
from Rs. 10,766 crore (US$ 2,498 million)
Shareholders Equity (Net Worth) increases to Rs. 22,931 crore (US$
5,320 million) from Rs. 11,742 crore (US$ 2,724 million) – among
the top three companies in India
Conservative capital structure - Net Debt to Equity Ratio down to
8%, from 28% last year
Commenting on the results, Mr. Anil Dhirubhai Ambani, Chairman,
Reliance Communications Limited, said:
“We are delighted at the many firsts and record achievements at
Reliance Communications, in the first year of our listing.
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We have created more than Rs. 60,000 crore (US$ 13.9 billion) of
wealth for our 2 million shareholders, in the very first year.
Profits increased more than 6 times during the year, and with the10% maiden dividend, we have become the first telecom company
in India to reward shareholders through a dividend payout.
Profitability has shown a consistent upward trend, and in the fourth
quarter ended March 31, 2007, our net profits crossed the Rs. 1,000
crore (US$ 238 million) mark. We are the fifth Indian company to
reach this landmark, and the first to achieve this in the very first
year of listing.
During the year, each of our businesses recorded strong revenue
growth and expanded their margins, deriving leverage from the
growing scale of operations. We look forward to another record year
in FY 2007-08, and will endeavour to accelerate our momentum of
customer acquisitions, increase our share of the growing market,
and further enhance profitability to maximise
overall shareholder value.”
During the year, RCOM’s market capitalisation crossed Rs. 1,00,000
crore (US$ 23 billion), making RCOM one of Asia’s 5 most valuable
telecom companies, and one of India’s top 10 listed companies
ADA GROUP VISION
Reliance Communications envisions a digital revolution that will
bring about a New Way of Life. ‘A Digital Way of Life, for a New
India ’.
To build a global enterprise for all our
stakeholders, and
A great future for our country,
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To give millions of young Indians the power to
shape their destiny,
The means to realize their full potential…
With mobile devices, netways and broadband systems linked
to powerful digital networks, Reliance Communications will usher
fundamental changes in the social and economic landscape of India.
Reliance Communications will help men and women connect
and communicate with each other. It will enable citizens to reach
out to their work place, home and interests, while on the move. It
will enable people to work, shop, educate and entertain themselves
round the clock, both in the virtual world and in the physical world.
It will make available television programmes, movies and news
capsules on demand. It will unfurl new simulated virtual worlds with
exhilarating experiences behind the screens of computers and
televisions.
Users of Reliance Communication’s full range of services
would no longer need audiotapes and CDs to listen to music.
Videotapes and DVDs would not be necessary to see movies. Books
and CD ROMs would not be needed to get educated. Newspapers
and magazines would not be required to keep abreast of events.
Vehicles and wallets will become unnecessary for shopping.
Reliance Communications will disseminate information at a
low cost. "Make a telephone call cheaper than a p
ost card". These prophetic words of Dhirubhai Ambani will be
a metaphor of profound significance for Reliance Communications.
Reliance Communications will regularly unfold new applications.
Continually adapt new digital technologies. Create new customer
experiences. Constantly strive to be ahead of the world.
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Reliance Communications will transform thousands of villages
and hundreds of towns and cities across the country.
Above all, Reliance Communications will pave the way to
make India a global leader in the knowledge age.
ADA GROUP VALUES
SHAREHOLDER INTEREST
We value the trust of shareholders, and keep their interests
paramount in every business decision we make, every choice we
exercise
PEOPLE CARE
We possess no greater asset than the quality of our human
capital and no greater priority than the retention, growth and well-
being of our vast pool of human talent
CONSUMER FOCUS
We rethink every business process, product and service from
the standpoint of the consumer – so as to exceed expectations at
every touch point
EXCELLENCE IN EXECUTION
We believe in excellence of execution – in large, complex
projects as much as small everyday tasks. If something is worth
doing, it is worth doing well.
TEAM WORK
The whole is greater than the sum of its parts; in our rapidly-
changing knowledge economy, organizations can prosper only by
mobilizing diverse competencies, skill sets and expertise; by
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imbibing the spirit of “thinking together” -- integration is the rule,
escalation is an exception
PROACTIVE INNOVATION
We nurture innovation by breaking silos, encouraging cross-
fertilization of ideas & flexibility of roles and functions. We create an
environment of accountability, ownership and problem-solving –
based on participative work ethic and leading-edge research
LEADERSHIP BY EMPOWERMENT
We believe leadership in the new economy is about consensus
building, about giving up control; about enabling and empowering
people down the line to take decisions in their areas of operation
and competence…
SOCIAL RESPONSIBILITY
We believe that organizations, like individuals, depend on the
support of the community for their survival and sustenance, and
must repay this generosity in the best way they can
RESPECT FOR COMPETITION
We respect competition – because there’s more than one way
of doing things right. We can learn as much from the success of
others as from our own failures
CORPORATE GOVERNANCE
Great corporations, like individuals, are known for their
unwavering commitment to ethical values and principles. At
Reliance - ADA Group, we remain steadfast in our resolve to uphold
the highest standards of integrity, transparency and governance.
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For us, corporate governance is not just about adhering to the
formal letter of the law, but about embracing the substantive spirit
that lies underneath; to move beyond the statutory obligations.
The key aspects of our corporate governance practice are:
Monitoring of executive and director compensation
Providing autonomy to the Board
Implementing rigorous disclosure and transparency norms
MONITORING OF EXECUTIVE AND DIRECTOR
COMPENSATION
Across each of the group companies, a Remuneration
Committee assesses the overall compensation structure and
policies of the organization and makes recommendations. These
form the basis for formulating the company’s executive
remuneration framework.
The Remuneration Committee consists of non-executive
directors, a majority of whom are independent. The Chairman of the
Committee is an Independent Director. The Remuneration
Committee works with full autonomy, and is free of any managerial
interference. The Committee is also empowered to call upon
professional advice, both from within and outside the company, in
the discharge of their duties.
PROVIDING AUTONOMY TO THE BOARD
The Board of Directors of each of the group companies
consists of eminent individuals with diverse experience and
expertise. The respective Board acts with autonomy and
independence in exercising strategic supervision, discharging its
fiduciary responsibilities, and in ensuring that the management
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observes the highest standards of ethics, transparency and
disclosure.
The Board of Directors reviews all information details and
transactions relating to significant business decisions, including
strategic and regulatory matters. Every member of the Board,
including non-executive directors, has access to all relevant
information about their respective companies.
The Board appoints a number of Committees to focus on well-
defined areas of responsibility, with a clear mandate to make time-
bound recommendations, and, where specified, use the authority
vested in them by the Board to take crucial decisions.
IMPLEMENTING RIGOROUS DISCLOSURE AND
TRANSPARENCY NORMS
Each of the Group companies adheres to all disclosure and
transparency norms relating to corporate governance. We are
committed to public disclosure, in a clear and timely manner, of our
financial accounts, including both segment and consolidated
accounts, and the level and means of remuneration of our directors
and top executives. We also give out clear information on related-
party transactions, if any, that are undertaken within the group.
We strictly comply with all governance codes, listing
agreements, other applicable laws and regulations, and, not least,
our self-avowed corporate values and objectives.
AN EXCITING FUTURE AT RELIANCECOMMUNICATIONS
Reliance’s service is based on a very simple principle: provide
the world's best customer experience.
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This reliance has achieved through a winning combination of
global competencies, pioneering technology and state-of-the-art
customer-centric systems and processes.
Reliance’s mission of changing lives across India meant that it
needed to have a nationwide presence — something it has achieved
in a relatively short span of time. Reliance’s dream of helping
people create, transfer and apply knowledge challenged them to
bring together contemporary communication technology from
across the world.
Now their operations are spread across 673 cities and span a
host of various kinds of services. Reliance’s business is organised
around the following categories: wireless, wireline, wholesale, and
the Webworld and village telephony. The work is executed through
different work centers like Engineering, Internet data centers, Billing
and Collection centers, Systems and Application centers in ERP,
CRM, OSS billing, revenue assurance and functions like Commercial,
Finance, HR and IT. It manages this integrated diversity by leadingwith trust. What differentiates them and fuels their growth is
leadership.
The following attributes define future leadership at Reliance
Communications:
Customer centricity.
Initiative and an attitude of ownership.
Passion for excellence and an ability to energise.
Problem solving and an innovative "can do" mindset.
Entrepreneurship and stretch.
Today Reliance Communications offers challenging
assignments and career opportunities to engineers, MBAs, Telecom
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network and IT specialists, profit centre heads as well as young
professionals.
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RELIANCE COMMUNICATION S
Corporate Office: MUMBAI
Address:
Reliance CommunicationLtd.
Dhirubhai AmbaniKnowledge City
Navi Mumbai 400709,India.
Tel No. : 3037 3333
Registered Office: GUJARAT
Address:
Reliance Communication Ltd.Reliance House
Near Mardia Plaza,Off C.G.Road,
Ahmedabad-380006India.
Tel No. : 3233 1401
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RELIANCECOMMUNICATION
PERSONAL ENTERPRISESHARED
SERVICESWEB WORLD
DISTRIBUTION PABREGULATORY
&LAISION
RETAIL
OUTBOUND
CSD
PERSONALCOMMERCIAL
MARKETING
EWG
EBB
ENTERPRISECOMMERCIAL
CORPORATECOMMERCIAL
HR
NETWORK
DEPARTMENT STRUCTURE
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FUNCTIONAL DEPARTMENT AT RELIANCECOMMUNICATION
The allocation of work for various group of people are
differently allocated which known as department, in order to
achieve the goal of the organization. The orientation and the
activity are different with variety of role in each of the department
so that we need to understand the importance and contribution of
efforts made by the persons. All such efforts take the form of
transactions and which finally comes to commercial department in
form of transaction activity which has been officially recorded in
books of accounts of company. Each department plays very vital
role and the flow of activity is also mapped accordingly. Telecom is
different field then other company thus it’s very essential to
understand the Departmental activity process.
1. HR and Administration
2. Marketing and Sales Department3. Technical & Network Department
4. Commercial & Legal Department or Finance Department
5. Customer Care
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GUJARAT ZONE DISTRIBUTION
NORTH GUJARAT
CIRCLE HEAD OFFICE – AHMEDABAD
SUB CLUSTER OFFICE - MEHESANA
CENTERAL GUJARAT
CLUSTER HEAD OFFICE – BARODA
SOUTH GUJARAT
CLUSTER HEAD OFFICE – SURAT
SAURASHTRA
CLUSTER HEAD OFFICE – RAJKOT
SUB CLUSTER OFFICE - GANDHIDHAM
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Commercial
Department
Logistic
Section
Billing &
Collection
Accounts
SectionLegal
Section
COMMERCIAL DEPARTMENT FLOWCHART AT EACH CIRCLE OFFICE
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MARKETING
The level of competition has increased over the years in the
telecom industry; one has to do aggressive sales and promotion
activities, in order to gain maximum market-share. Marketing
expenditure is that expenditure which is incurred mainly for two
purposes.
• Brand Building
• Sales & Promotion
Marketing Expenditure includes the following.
- Outdoor Rental
- Printing Banners & Leaflets
- Signage
- Participate in Event
- Road Show
- Advertisement in News paper
- Merchandising activities
The vendors who provide the above services to the company
and who supply goods required in conducting above activities stand
as creditors of the company, so the commercial department ensures
timely payment to these vendors
In Reliance Communication Ltd, for marketing expenditure
there is a fixed budget prepared by finance managers at higher
levels in coordination with marketing team as per companies target
for the period. Marketing people are supposed to use this budget in
best possible way to increase sales. For outdoor rental & outdoor
flex a different budget is given, and for other expenditure Cost of
Customer Acquisition (COCA) budget is given.
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ADMINISTRATION
Administration related expenditure is that expenditure which
is incurred in maintaining smooth flow of day to day process.
Administration Expenditure includes the following.
• Printing and stationery
• House keeping items, items purchased for office welfare
• Renovation of the office, repairing of some accessories
• Computer and space allotment.
• Rent of building
• Electricity charges
• Municipal taxes
• Maintenance of building
• Courier charges
• Hotel expenses
• Guest house rent & electricity etc.
These expenses are considered under Steady State Related
Expenditure. Demand is raised under two conditions.
- End user raises demand to the Administration department
- Stock out of the margin.
Once the demand arises administration approaches the
commercial department and gives a request of procurement of thematerials and against the Purchase Order (PO) being raised. But
before raising purchase order quotation provided by vendors is
verified by both the commercial executives and as by the
administration executive. Normally repeat orders are being awarded
to the same vendors. But if the rates are being revised by the
vendors, then one to one negotiation will be held in three person
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conference which consists of vendor, commercial executive and
administration person.
PROJECT
Project related expenditure is the expenditure done to establish
network towers for proper connectivity. Project investment is made
for recurring benefit. As the business reliance Communications is in
initial investment is very high. Mainly investment is made in
• Media Convergence Node (MCN)
• Intermediate Station (IS)
• Base Transmission system (BTS)
Media Convergence Node (MCN)
MCN is like Junction Box, detect details & transfer to main
server. In Gujarat 21 MCN are there. Investment in MCN has been
already made.
Intermediate Station (IS)
Intermediate Station is placed between two Media Convergence
Node to enlarge the capacity of MCN. Investment in IS has been also
already made.
Base Transmission system (BTS)
These are the towers which facilitates connectivity. At present
there are 700 BTS towers in Gujarat and 1000 more will be added in
next 6 months. There are two types of BTS.
1. Roof Base Tower (RBT)
Roof Base Tower is installed on building up to 6, 9 or 15 meter
height after obtaining government permission.
2. Ground Base Tower (GBT)
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Ground Base Tower is installed on ground up to height 15
meter to 70 meter after obtaining government permission.
NETWORK
As the name itself suggests this category include expenditure
incurred by the company for providing excellent network to the
customers. As effective network is strength of Reliance, company
incurs heavy expenditure for the same, Reliance had developed
fiber optic network to provide better connectivity to the user.
Basically three types of expenses are included in this:-• Port payment
• Electricity consolidation
• Network maintenance
Port payment
Port charges are those charges which company pays to avail
facility from BSNL to get its network which is further connected and
disbursed to different network towers of the company through fiber
optic network. This expenditure is fixed in nature and paid in
advance for the entire year and amortized every month. Company
should maintain regularity and punctuality in this payment because
company’s service depend on its network any flaw in payment
procedure to these creditors can hamper company’s service to the
customers.
Electricity Consolidation
It is a state affair as electricity is provided by different
operators in different states. In Gujarat there are two operators:
• Torrent Power
• Gujarat Electricity Board (GEB)
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Company utilizes services of both the operators but payment to
Torrent Power is made at respective cluster office and payment to
GEB is made through circle office (i.e. Ahmedabad office) for this
purpose every cluster send there respective bills to circle officewhere all bills are consolidated and then bifurcated on the basis of
respective company which utilized the electricity. Finally payment is
made to GEB.
Network maintenance
This includes all other expenditure incurred on maintaining network.
Following are some network maintenance expenditures:-• Materials for Base Transmission System (BTS) or network
towers
• AMC maintenance
• Air conditioners at BTS
• Fire Extinguisher
• Handset repairing contracts
• Cable cut claim
• Petty maintenance
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HUMAN RESOURCE MANAGEMENT
For any business to run one needs four M’s namely Man,
Money, Machine and Material. Managing other three resources other
than men, are easy to handle. Men are very difficult to handle
because no two human beings are similar in all way. Human beings
can think, feel and give response. Handling humans is more
important for any business because human being have crucial
potential that may be very profitable for the business. And these
potential can be developed to an unlimited extent if they are
provided with proper environment. So the function of managing
men is as important as finance or marketing function in any
business.
HRM is “It refers to practices and policies framed for the
management of human resources in an organization, including
Recruiting, screening, rewarding and appraising.”
Human resources have at least two meanings depending on
context. The original usage derives from political economy and
economics, where it was traditionally called labor, one of three
factors of production. The more common usage within corporations and businesses refers to the individuals within the firm, and to the
portion of the firm's organization that deals with hiring, firing,
training, and other personnel issues. This article addresses both
definitions.
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The objective of Human Resources (HR's raison d'etre)
is to maximize the return on investment from the
organization's human capital
THE SCOPE OF HRM is indeed very vast. All major activities in the
working life of a worker-from the time of his or her entry into the
organization until he or she leaves- come under the purview of HRM.
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Specifically, the activities include are
HR Planning
Job analysis and design
Recruitment and selection
Orientation and placement
Training and development
Performance Appraisal and Job evaluation
Employee and executive remuneration
Employee Motivation
Employee Welfare
It is the responsibility of human resource managers to conduct
these activities in an effective, legal, fair, and consistent manner.
"Human resource management aims to improve the productive
contribution of individuals while simultaneously attempting to attain
other societal and individual employee objectives." Schwind, Das &
Wagar (2005)
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HUMAN RESOURCES INSIGHT AT
RELIANCE COMMUNICATIONS
“In my book, we have no greater asset than the quality of our
intellectual capital, and no greater priority than the growth and
retention of our vast pool of talent”
Anil
Dhirubhai AmbaniAt Reliance - Anil Dhirubhai Ambani Group, they recognize the
critical role that their people play in the success and growth of each
of their businesses. It is the skill and initiative of their workforce that
sets them apart from their peers in today’s knowledge-driven
economy. It is their commitment and dedication that lends them the
competitive edge, and helps them stay ahead of the curve.
Their strong team of professionals is among the youngest in the
country, and consists of some of the most dynamic, motivated and
qualified individuals to be found anywhere in the world. First-rate
management graduates, highly trained engineers, top-notch
financial analysts and razor sharp accountants—all are part of the
professional team at Reliance Communication.
RELIANCE COMMUNICATION HR MISSION
“Facilitate, coach and enable best-in-class and leading edge
HR practices across the extended enterprise of Reliance Infocomm
and thereby nurture a customer centric, positive-energy
organization which will maximize stake-holder satisfaction.”
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OBJECTIVE OF RELIANCE COMMUNICATION
Their aim is to create a team of world beaters that is:
Committed to excellence in quality,
Focused on creation and enhancement of stakeholder value
Responsive to evolving business needs and challenges
Dedicated to uphold the core values of the Group
RELIANCE COMMUNICATION PROMISE
In order to achieve their objective, they offer their people...
Growth opportunities to expand leadership capabilities
True meritocracy and freedom to choose career paths
Opportunities to develop and hone leadership and functional
capabilities
An entrepreneurial environment where people can pursue
their dreams
Competitive compensation
In addition, they follow a well-defined Rewards & Recognitions
Programmes that periodically identifies exceptional individual and
team achievers among the various business functions and verticals
in the Group.
HR STRUCTURE
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PRESIDENTHR
CORPORATE HRENTITY
HR
CIRCLE
HR
CEO
CORPORATE HR: Activities taken up by Corporate HR are
Policy making
Implementing suggestions - HEWITT CONSULTANT
Strategic planning
ENTITY HR: Activities taken up by Entity HR are
Execution of policies and practices
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Targets for recruitment of Circle HR
CIRCLE HR: Activities taken up by Circle HR are
Recruitment
Appointment
Training
Payroll
Employees issues
Exit full & final
HR FUNCTIONS
TALENT ACQUASITION
Sourcing activity
TALENT DEVELOPMENT
Performance management system
Training
Carrier planning
Suggestion planning
TALENT MANAGEMENT
Operation HR
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EMPLOYEE CLASSIFICATION
REGULAR
A ‘Regular’ employee is a person who has been engaged on a
regular basis and includes any person who has been confirmed in
writing as a regular employee.
PROBATIONER
A ‘Probationer’ is a person who is employed to fill a regular
vacancy of a position and has not completed the stipulated
probationary period applicable to her/his level. On satisfactory
completion of the probation period, the probationer’s service will be
confirmed in writing.
At Reliance Communication employee who joins with a less
than one year of full time work experience is appointed on a
probationary period. The probation period is for 6 months.
The purpose of probationary period is to determine whether an
employee is able to perform the duties of job satisfactorily or not.
During probation period several attributes like Communication,
Quantity of work, Quality of work, Interpersonal skills, Attendance
and punctuality are accessed.
Appraisal will be done by the immediate supervisor and
reviewed by departmental head. In case of satisfactory Performance
of employee, confirmation letter is issued.
In case of unsatisfactory performance at work, reviewer in
consultation with Appraiser, circle/ business entity head and HR
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representative can decide to extend probation period from 3-6
months.
TRAINEE
A ‘Trainee’ is a person engaged for being imparted in-house
training or specific areas of operations under a training agreement
specifying the training period.
At the end of the training period their performance will be
assessed to determine whether they should be confirmed or thetraining period extended/concluded. The Training period is for 12
months.
CONTRACT
A contract staff is one whose contract of engagement is for a
specific period/ assignment. Professional employment agencies
such as hire employees and keep their payroll and client companies
use these employees for their work.
Such agencies maintain records, salary, gratuity and provident
fund etc. of that hired person and there will be no burden on any
part of the client organization.
Reliance Communication hire employees on contract directly
for a specific period of time and if found suitable for future
requirement extend his/ her contract for some period of time.
Generally the Contract period is for 11 months.
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RECRU ITMENT DEFINITION:
Recruitment is the process of finding and attracting capableapplicants for employment. In simple terms Recruitment can be
understood as a process of searching for and obtaining applicants
for jobs, from among whom the right people can be selected.
Recruitment Programme helps to attract highly qualified and
competent people. It ensures that the selected candidates stay
longer with the company and makes sure that there is a match
between cost and benefits. It helps the firm create more culturally
diverse work-force.
RECRUITMENT POLICY
Reliance Communication recognize that their employees arevital to their success and therefore it is important for the company,
existing employees and potential employees that HR Department
take time to recruit the best people possible -people who are
capable of responding to the challenges that will be placed upon
them now and in the future.
To ensure to get right people, recruitment process at RelianceCommunication highlights each applicant’s skills, talents and
experience. Selection procedure involves a list of qualified
candidates, defining a selection strategy, identifying qualified
candidates, thoroughly evaluating qualified candidates and
selecting the most qualified candidate.
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RECRUITMENT PROCESS
STEP 1: MANPOWER PLANNING.
AOP (Annual Operating Plan), this process is taken up everyyear. It is taken up at Personal Level and Entity Level.
Several points like Revenue generation, Acquisition number,
etc.
STEP 2: SOURCING ACTIVITY .
There are three types of sourcing done at Reliance. After
the resumes of candidates are chosen then the same is sent
to the department head where the vacancy arises. The
department head will then shortlist the same and they ask
the HR department to fix an interview with the selected
candidates. There are two type of interview which is taken
up at Reliance, firstly the Functional interview and then the
Functional Head and HR Head takes the interview.
INTERNAL SOURCING
Employee Reference
Re-employment of former employee
EXTERNAL SOURCING
Placement Consultant – Ruchika, the Age, the Avenue.
Job Portals - Monster, NAUKRI. Campus Recruitment
STEP 3: APPROVAL.
The HR executives will Negotiate the CTC with the
candidate.
The approval is sent to the CRC (Corporate
Recruitment Cell).
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Then after it is sent to ECRC.
Then the same is sent to CRL.
The same is then sent to Management for SAP
Applicant Code.
The applicant code is given to HR CIRCLE.
OFFER is made to the candidate, which leads to the
Joining Procedure.
AVERAGE TIME PERIOD:
The process of recruitment takes about 10 – 15 days
ELIGIILITY CRITERIA:
Education Qualification – MBA with any specialisation
Not frequent job changes
Tenure of last job should at least be 1.5 – 2 yrs
OTHER REQUIREMENTS:
Reference check is usually done for High level job
The recruitment may differ with the current position of the
business
INTERNAL SOURCING
In the event of an open position in Reliance Communication,
suitable candidates are first searched internally within the
organization. This is based upon in-house talent which could be
redeployed.
Advertisement for internal vacant position is done by following
two ways:
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Through sending mail to all Reliance Infocomm employees across
all locations including DAKC (Dhirubhai Ambani Knowledge City)
Through DAKC Circular
Employees of Reliance Communication who have completed
more than 12 months of continuous service only those employees
can apply for position placed on Intranet.
Internal candidates are considered in accordance with their
abilities and potential. The process is coordinated by CRC (Central
Recruitment Cell) at Corporate Office.
EMPLOYEE REFERENCE: In Reliance Communication, Employees
can refer a candidate with whom he/ she have worked in his/ her
previous employment. Employees can check available vacancies on
Intranet and can submit the resumes of prospective candidates who
fit the Job profile.
RE-EMPLOYMENT OF FORMER EMPLOYEE: Re Hiring of an
employee done in Reliance Communication with a view to take
trained manpower back in the company. Re Hiring is done as per
the policy issued by Central Recruitment Cell at Corporate Office
EXTERNAL SOURCING
PLACEMENT CONSULTANCY: The placement agencies call for
resumes of prospective candidates, which act as a good source of
recruitment for the companies. Consultant’s interview candidates
and shortlist those according to the criteria laid down by the
companies. This helps the employer to interview a limited number
of potential candidates, the minimizing the time taken in receiving
and sorting applications, etc.
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Reliance Communication chooses Consultants having national
presence. This sourcing option is only considered by the company
when there is scarcity for candidates with requisite experience andskills.
JOB PORTAL: The spread of Internet has enabled employers to
search for candidates globally and has made recruitment easier. If
vacancy arises, Reliance Communication browses the profile of
candidates from the Job portal like naukri.com, monsterindia.com
and then candidates are accessed through e-mail or telephone.
CAMPUS RECRUITMENT: Reliance Communication goes for
Campus recruitment every year for technical department. For
management level recruitment, it goes for campus recruitment as
per requirement.
For filling up position for MT (Management Trainee), following
procedure is followed by Reliance Communication:
HR representative of Reliance Communication gives
Description about Job to all candidates
Written Test i.e. (MAT) Mental Ability Test is taken for
those candidates who has got aggregate 60% in all
semesters.
GD (Group Discussion) is conducted for those
candidates who had successfully pass MAT.
At last PI (Personal Interview) is conducted for those
candidates who had passed out GD and Personal Interview is
taken by respective head of department and HR Head.
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For filling up position for GET (Graduate Engineering Trainee),
following procedure is followed by Reliance Communication:
HR representative of Reliance Communication gives
Description about Job to all candidates
Written Test i.e. (MAT) Mental Ability Test is taken for
those candidates who has got aggregate 60% in all
semesters. At last PI (Personal Interview) is conducted and Personal
Interview is taken by respective head of department and HR
Head.
MT position includes candidates having Educational qualification in
MBA and GET Position includes candidates having Educational
qualification in BE (E&C, Electronics).
MT is placed in either of the following departments:
Prepaid
Postpaid
PCO
Customer Care
Commercial
HR
Web world
GET is placed in Network Department.
INTERVIEW
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Interview is the oral assessment of the candidates for employment.
This is the most essential step in the selection process. In this step
the interviewer matches the information obtained about the
candidate through various means to the job requirements and tothe information obtained through his own observation during the
interview. Interview gives the recruiter an opportunity:
To size up the candidate personally
To ask questions that are not covered in tests
To make judgments on candidate’s enthusiasm andintelligence.
To assess subjective aspects of the candidate – facial
expressions, appearance, nervousness and so forth.
To give facts to the candidate regarding the company,
the policies, programmes, etc. and promote goodwill
towards the company.
MODE OF INTERVIEW
PERSONAL INTERVIEW: Personal Interview is a formal
in-depth conversation conducted to evaluate the applicant’s
acceptability. In a personal interview, candidates are
accessed on behavioral and personality characteristics,
functional and managerial competencies and other factors like
education, experience etc. Based on the candidate’s
performance in the interview, the interview panel rates the
candidate and takes the selection decision.
VIDEO CONFERENCE: At Reliance Communication,
usually face to face interviews are conducted but for those
candidates who are located at other state for them video
conference interviews are conducted. The use of video
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conferencing can add value to the process by allowing real
time, face-to-face interactions without the costs associated
with physically transporting candidates to the campus.
Reliance Communications uses Video conference for
following reasons:
Time savings
Faster Decision making
Cost savings in candidate travel, lodging, etc.
An opportunity to meet the candidates before
narrowing the list
An opportunity to see and converse with candidates, evaluate
their responses to questions and gauge their interest in the
position.
TELEPHONIC INTERVIEW: There are various reasons to take
a telephonic interview. For example, in certain location
Reliance Communications does not have its Webworld, so in
that case the interview of that candidate will be taken over
telephone. Even if the interview of a candidate cannot
happen through video conference because of unavailability of
any Webworld timings, then telephonic interview is taken.
CAMPUS RECRUITMENT: For GET, Interview is taken by
respective functional head and HR head and for MT Interview
is taken by 2-3 functional heads, HR head and final interview
is taken by Circle CEO.
LEVELS OF DESIGNATION & EXPERIENCE
L1: VICE PRESIDENT, Sr. VICE PRESIDENT, PRESIDENT.
(LEADERSHIP POSITIONS)
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EXPERIENCE: 17 – 20 + years
L2: DEPUTY GENERAL MANAGER, GENERAL MANAGER.
(MAGERIAL POSITIONS)
EXPERIENCE: 11 – 15 + years
L3: ASSISTANT MANAGER, MANAGER, Sr. MANAGER.
(EXECUTIVE POSITIONS)
EXPERIENCE: 5 – 11 + years
L4: EXECUTIVE, Sr. EXECUTIVE.(SUPPORT POSITONS)
EXPERIENCE: 2 – 4 + years
GET, MET, DET: Trainees
EXPERIENCE: Fresher
REFERENCE CHECK
Once the hiring decision is taken, the candidate is contacted
and informed about the decision to conduct a reference check with
the referees whose names have been provided in the personal
history form.
Many employers request names, addresses and telephone
numbers of references for the purpose of verifying information and
perhaps gaining additional background information on an applicant.
References are checked for following reasons:
To check whether or not the applicant was truthful about his
or her employment history.
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To know weaknesses, strengths of the applicant.
SELECTION DECISION
After obtaining information through the preceding steps, selection
decision is to be made.
The other stages of selection process have been used to narrow the
number of candidates. The final decision is to be made from the
pool of individuals who pass the tests, interviews.
MEDICAL CHECK-UP
All selected candidates are required to undergo a pre-employment
medical check-up as a part of selection process.
After the selection decision and before the job offer is made, the
candidate is required to undergo a Medical check-up. A job offer is
contingent upon the candidate being declared fit after the Medical
test.
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EMPLOYEE REMUNERATION
Remuneration is the compensation receives in return for his/ her
contribution to the organization.
Reliance Communication follows the cost to company (CTC)
structure that reflects the total cost of an employee to an
organization. It is designed to provide flexibility to an employee to
structure their benefit package.
PHILOSOPHY OF CTC
Within the committed salary of an employee, provide
maximum flexibility to an employee
Cost all perquisites and benefits to an employee and make
the employee appreciate the total costs incurred by the
company on such benefits
Enable the company realize and recognize the hidden payroll
costs incurred on such benefits
Why CTC is divided in two parts?
As per the Indian Income Tax Rules the total Basic Salary paid
to the employee is taxable.
So Choice Pay can make your 60% salary non taxable.
PLI (PERFORMANCE LINKED INCENTIVE)
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15% on Fixed CTC would be would the base figure for PLI. Normally
PLI is paid once in a year depending on his performance during the
assessment period.
CTC SRUCTURE
The following are the main components to CTC
structure. The CTC structure includes costing of all components
of Compensation and Benefits an employee is entitled to.
B A S E
( 4 0 %
C H O I C
( 6 0 %
C T C
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BASE PAY
This constitutes up to 40% o the total annual compensation and it
includes
Basic Salary
Employer’s contribution to the PF @ 12% of basic salary
Employer’s contribution to the company’s gratuity fund @
4.81% of basic salary
BASIC SALARY
Basic Pay = Base pay/pf + gratuity
Base Pay = 100
Basic Pay = 100/1.1681
PROVIDENT FUND
Provident fund is to provide Social Security Benefit to the employee
after retirement. PF is deducted from the first day of employment.
The Company deducts 12% of the employee’s basic salary and
makes an equal contribution. The employee can take loans for
specific purposes against his/her provident fund accumulation.
The employee is also covered under an Insurance Scheme, which
provides for a payment of Rs. 37,000 / - in case of his /her death.
GRATUITY
Under the scheme Company contributes 4.81% of Basic Salary of an
employee to the Gratuity Fund. Last drawn basic salary/26
days*15 days*no. of completed years of service. Employees
who have completed 5 years continuous service with the company
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are eligible to get gratuity on separation from the company. In case
of death, the minimum service requirement of 5 years does not
apply. For calculating Gratuity, periods of service greater than 6
months will be considered as equivalent to 1year and less then 6months will not be counted.
As per Income Tax Rules, Gratuity is not taxable up to 3,
50,000 /- .
Any amount paid in addition to 3, 50,000 /- will attract tax.
All employees who have completed 1 year continuous service
with the company are eligible to get gratuity on separationfrom the company.
CHOICE PAY
This constitutes up to 60% o the total annual compensation and it
includes
Company Leased Accommodation
Company Owned Accommodation
Office Wear Allowance
Leave Travel Allowance
Company Leased Car
Children Education Allowance
Gift Coupons
Conveyance Allowance
Food Coupons
Medical Expense
House Rent Allowance
Superannuation
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Special Personnel Allowance
COMPANY LEASED HOUSE
Company will arrange the house through an authorized realestate agent as per the choice of the employee.
Security deposit by company.
12% percent Interest will be charged on deposit amount.
The same will be debited in CTC.
Rent would be exempted from income tax.
10% Perquisite Tax would be charged to the employee on his
taxable income.
COMPANY OWNED ACCOMODATION
No deposit – no interest.
Rent would be calculated @ 11 rupees per Square feet.
Monthly rental would be charged to CTC
Rental Amount will be exempted from tax
10% perquisite tax would be charged on employee.
Security Deposit
HRA – House Rental Allowance
HRA can be maximum 40% of Basic Salary.
Deposit and rent has to be paid by employee by self
To get the tax exemption the employee has to produce the
rental agreements and rental receipts of the house.
The employee can’t claim this benefit if He/She has his own
house.
OFFICE WEAR ALLOWANCE
An amount of Rs.18, 000 P.A. is exempted for income tax.
To get the exemption original bills to be submitted.
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Items covered under this head are as follows:
Attire (2) Ties (3) Shoes (4) Socks (5) Tailoring charges
LTA - LEAVE TRAVEL ALLOWANCE
An Employee can block two months of Basic Salary as Leave
Travel Allowance.
He/She should take a minimum of 5 days leave (PL).
In case of air travel-economy class fare is exempted and in
case of rail travel second class AC fare is exempted.
He/She can travel within India only.
He/She has to produce the original travel tickets.
CAR
Company will arrange a car through a car lease agency.
Employee can choose any make/model.
The EMI that will be charged would be Rs. 2095/- per Lac per
month.
The EMI amount per Annum would be exempted from Income
Tax.
MAINTENANCE & RUNNING COST
Maintenance and Fuel Cost will be exempted as follows.
Maintenance can’t exceed Rs. 25, 000 per annum.
If CC of the car is less than 1000 – Rs. 1, 11,000 per annum.
If CC of the car is more than 1000 – Rs. 1, 50,000 per annum.
The perquisite Tax charged would be Rs. 1200 irrespective of
the cc of the car
The above exemption would be provided on submission of
original bills.
There would be no tax exemption against if the employee has
his own car.
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The FBT Tax (Fringe Benefit Tax) for fuel and maintenance is
6.73% on how much you have opted for.
At the time of leaving CO. before 48 months then the
employee has to pay FCV (For Closer Value) to the companyfrom whom the loan is taken.
If the employee is still stays after 48 months then employee
will be charged 20% on the value of the car at that time for
changing the name i.e. ownership.
CHILDREN EDUCATION ALLOWANCE
Employee can claim exemption Rs. 2400 per year.
This exemption is restricted up to two children.
To pass the claim Employee has to submit the original bills.
To get this benefit child age should be greater then 3.5 years.
GIFT COUPONS
A sum of Rs. 5000/- would be exempted against the Gift
Coupons.
The company would provide coupons worth Rs. 5000/- during
the months of October & November.
Validity of this coupons is one year
This coupon is accepted at major outlets in city.
FBT Tax – 16.67% is charged.
CONVEYANCE ALLOWANCE
If the employee is not using company’s car then and only then
he can claim this option.
To getting the exemption bills are not required.
Conveyance allowance is up to Rs. 800/- per month.
FOOD COUPONS
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The Company gives SODEXHO passes in term of Food
Coupons.
Food coupons are provided on monthly basis of Rs. 1300.
A sum of Rs. 15600 per annum will be exempted from theincome tax.
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MEDICAL ALLOWANCE
The employee gets an exemption of Rs. 15000 p.a.
But to get exemption the employee must submit original bills.
HOUSE RENT ALLOWANCE
Maximum 40% of basic salary can be calculated as HRA.
But if employee owns the house in another state then he/she
can ask for HRA and also opt for Company Leased House.
SUPERANNUATION
13-15% of basic salary is transferred to trust.
It can be given to employee only after the completion of 5
years with the company.
The money is collected by a trust.
To withdraw the money the employee has two options, either
he can take the money monthly or he can take the money
after 5years.
SPECIAL PERSONAL ALLOWANCE
Any amount which exceeds the limits of each allowance can
be transferred under this head.
SPA is fully taxable as per income tax rules.
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LEAVES
There are four types of leaves available with the employees.
PAID LEAVE
CASUAL LEAVE
SICK LEAVE
OPTIONAL LEAVE
Additional Information:
No leaves can be clubbed with another leave.
Minimum 90 days leave should be in balance for the
encashment of leaves.
PAID LEAVE
There are 30 days PL available with the employee after
the conformation.
The PL is available after 180 days from the date of
joining. The employee can take only 3-5 PL at a single time
CASUAL LEAVE
There are 5 days CL available to an employee from the
date of joining.
The employee can take 1-3 days CL at a time.
SICK LEAVE
There are 10 days SL available to an employee from the
date of joining.
The employee has to submit doctor’s certificate if the
leave extends to 2 days.
OPTIONAL LEAVE
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There are 3 days OL available to an employee from the
date of conformation.
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JOINING FACILITATION
Joining Day is the day when an employee recruited on the
payrolls of the company. The HR Rep. should be in constant touchwith the candidates till the date of joining. Collect the information
from the candidate regarding the date and mode of arrival to the
location of joining. Arrange for pick-up of the joinee & family from
the station/airport and take them to the hotel as per the
requirement. If pick-up arrangement can’t be arranged then give
complete address/directions to the hotel & the office to joinee.
HR Rep. should give a brief introduction to the new joinee on the
following:
Geography of the Location/City/Town.
Organization Structure.
Status of the Project/Operations of the circle.
Role of the employee.
RESIDENTIAL & MOBILE TELEPHONE
Residential & Cellular Phone are allotted to employee based on the
role and responsibility level and should not be treated as Perquisite.
The Residential & Cellular Phone provided by the company will be
on the name of company.
Circle / Business Entity Head can take any of the following decisions
with respect to Residential Telephone Connection:
Obtain the telephone connection on priority basis by paying
higher amounts.
Provision of STD / ISD Facility.
Reimburse only Telephone Rental expenses.
Reimburse the Local Call Expenses.
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Reimburse expenses related to only official calls.
Reimburse all expenses including Long Distance Calls.
ALLOTMENT OF DESKTOP PC / LAPTOPAll full time permanent employees who will be available at
their office desk for more than 80% of the working hours on daily
basis will be provided with a desktop PC on their workstation.
The circle/Business Entity head can take decision to allotment
of Lap Top in lieu of desktop PC based on the role of the employee.
FORMS & LETTERS REQUIRED IN THISPROCESS
Welcome Letter.
Joining Report.
Brief Personal Details Form.
Transfer of EPF Account.
Nomination Form.
Gratuity Nomination Form.
Superannuation Transfer Form.
Application to join Superannuation Scheme.
Choice Pay Form.
Personal Accident Insurance Form.
Nomination for payment of the amount secured under
personal accident Insurance Policy.
Hospitalization Insurance Form (Applicable for L3 & L4 )
Hospitalization Insurance Coverage for dependent parents.
Health Declaration Form
Health Certificate
PC Indent Form
New Telephone Extension Form
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Electronic Mail Registration Form
Requisition for Visiting Cards.
INDUCTION
Induction is also called orientation, which is designed to provide
a new employee with the information he or she needs to function
comfortably and effectively in the organization.
iNEP INDUCTION PROGRAM
The Human Resources Department structures an
appropriate induction programmes to orient the new employees to
various businesses and services at Reliance communication.
A two-day Induction program (iNEP- Infocomm new
employees program) is offered to all new employees. The
company which takes the induction program for reliance
communications is RELNIS NI SPARTA.
The induction program helps the employee to integrate in the
new environment and provide an overview of the Organization as a
whole. It also provides an opportunity to the new entrant to engrain
the original values and ethics as well as the style of functioning.
This program is all about:
Developing a shared understanding of Reliance
communication’s vision and mission.
Understanding their organization and business model.
Familiarization with leaders at Reliance Communication.
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Networking and integrating with Reliance Communication
employees.
This program provides information on:
The history of reliance group
The fundamentals of telecom business
Introduces technologies and key concepts of the business.
This program shares the company’s strategic objectives,
organization structure and processes and systems.
Presentations are made from representatives from various
business units and functions.
EXITS
DEPUTATION & TRANSFER
DEPUTATION
Due to business requirements, employee may be required to be
posted to other location than your primary location.
If such posting requires you to relocate from your base location
beyond 29 days, then it is defined as deputation.
If such posting requires you to relocate from your base location
beyond 3 months, then it is defined as Transfer.
Deputation letter is given and respective deputation allowance is
paid to the employees as per policy.
TRANSFER
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Business needs may be required an employee to be transferred on
permanent basis
One circle to another circle
One location to another location
Departmental head initiates the request for transfer of an
employee and forwards the same to the circle HR Representative.
Employee will receive transfer letter from Circle HR Representative
of the primary circle/location.
SEPARATION
Reliance Communication believes in treating all employees
separating from the company with utmost dignity.
RESIGNATION
Resignation means employee voluntarily leaving the services
of company either for professional or personal reasons. Employeesmust serve a written resignation, mentioning the relieving date to
his/ her departmental head that will discuss and obtain the approval
of the circle head. The accepted copy of resignation letter with the
approved relieving date must be forwarded to the respective HR.
Confirmed employees are required to give 3 months notice in
advance and employees on probation are required to provide 15
days notice in advance.
JOB ABANDONMENT
If an employee remains absent without leave or remains
absent beyond the period of leave originally granted, he shall be
considered as having voluntarily terminated his/ her employment
without giving any notice unless he/ she:
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Returns to work within 8 days from the commencement of
such absence.
The employee gives an explanation to the satisfaction of the
management regarding such absence.
TERMINATION
Termination is an undesirable outcome for employee as well as
the company, but may be necessary if the employee
Violates the company policy
Is unable to meet company’s performance standards
EXPIRY OF TRAINING/ CONTRACT
Employee under training /contract will be evaluated at the
end of specified period by HOD and decision whether to extend his/
her service will be taken.
EXIT INTERVIEW
An exit interview is typically a meeting between at least one
representative from a company's human resources (HR) department
and a departing employee. The departing employee usually has
voluntarily resigned. The HR representative might ask the employee
questions while taking notes.
Prior to leaving, an exit interview is conducted to gather
feedback and recommendations of the outgoing employee. Exit
interview is a one-to-one discussion where voluntary views and
suggestions are taken from the outgoing employee on what his/ her
expectations had been at the time of joining the company and
reason for leaving the company. The circle HR arranges the exit
interview.
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Listed below are some of the exit interview questions that
Reliance Communication asks to departing employees in Exit
interview.
To what extent did he/ she expect to experience following
features of work at the time of joining the company
Job security
Career prospects
Good compensation
Self development
Welfare
Operational freedom
To what extent did he/ she find that features of work in the
company
Reasons for leaving the company in terms of relevance
Personal
Professional growth related
Lack of challenge in work
Lack of promotional opportunities
Overall opinion about company, how much hike and other benefits
offered by new company compare the one he/she is leaving, and is
he/ she is interested in rejoining the Reliance Communication and
on what conditions are collected.
FULL & FINAL SETTLEMENT
When the employee leaves his/her job it is required that all
his/her financial obligations are settled. Financial obligations
like:
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Outstanding Advances/loans
Any undertakings he/she has given to the company in terms
of
Cost of mobile as per company policy Opting for company lease car
Or any other undertaking given by him/her
And turn in his/her identification cards, key and any other
property, which he/she had issued. The full & final amount is paid to
employee after recovering all advance/outstanding dues.
HR SUPPORT SYSTEM
SAP – HR
The Reliance ADA group is on the move to e-enable all HR
functions and the employee interface. We are in the process of
adopting state-of-the art ERP software - SAP, across all locations
and businesses.
As a service to the most valuable assets, i.e. the employees,
the Group HR is upgrading its extensive web-enabled services into
an internet enabled employee portal which will enable employees
from across the country to interact with HR & Payroll for any
requirement i.e. applying for and sanctioning leave, information on
policies and procedures, entering expense claims, updating their
own databases, etc.
ESS (EMPLOYEE SELF SERVICE) / (EMPLOYEE
SUPPORT SYSTEM)
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ESS will enable you to interact with the SAP database, to view
and maintain your personal data. ESS provides you with a host of
services in the following areas.
PERSONAL INFORMATION
Employee can view and update their personal data such as
Educational details
Details of previous employers
Family related information
Change of marital status
Change of residential address etc.
PAYROLL RELATED INFORMATION
Employee can view their monthly updates on the following:
Pay slips
Income tax projections
PF Statements
REIMBURSEMENT
Employee can submit their claims of following reimbursement online
Telephone bills
Local conveyance
Medical reimbursement
COST TO COMPANY (CTC)
CTC related activities
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ENTITLEMENTS
Medical insurance
Travel Entitlements
INCOME TAX RULES
Details of exemptions and benefits as applicable to
employee.
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MY EXPERIENCE IN RELIANCE
“Excellence has always been achieved by those who dared to believe that somethinginside them was superior to circumstances.So believe in yourself and try your level best ”.
By, SubhaNarayan Murthy
This phrase says it all. It is truly inspiring that one
must believe in what one is doing and stand by your
decision and work hard towards it, so that you may
achieve excellence.
Summer internship for any MBA graduate would be
an experience by itself, so was it for me. Working to me
was something new, as I had not worked anywhere else
before. But this voyage of internship taught me a lot
about my profession as an HR person. Reliance
communications has given me a platform to work in the
corporate and understand the working practices in HR
department. This internship was like a fresh start for my
carrier, the learning which I have undertaken here will
stay along with me through my journey of working. A pre-
learning for any working career is must this was mine with
different situations and examples to face the outcomes.
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The world is not a fairytale story. Life takes
challenges on every step of life. Work is the same in that
manner. Work requires a lot of self dedication and
motivation by itself. But the one thing which matters the
most is “work” and “the feeling that you are working”.
At Reliance I had the opportunity to learn about the
various functions of HR. My most of the time of internship
was into sourcing. The sourcing part which I was taking
care of was from job portals. I was supposed to searchresumes according to the needs of the department, the
levels of designation and major KRAs the post required.
Then it further goes on to inquiring with the selected
candidates about their current job and asking them if they
would like to work with Reliance Communications Gujarat.
Then all the further procedure was taken up by the HR
executives, which was then followed by scheduling of
interview and the department head would select the
candidate.
I also had the opportunity to attend some interviews
through video conferencing and that was really an
experience. I was allowed to sit in the panel of
interviewers, but of course I did not ask questions. The
panel existed of department head, HR representative and
me, but only for some VCs.
At Reliance I also had prepared a data management
system which was related to sourcing. The data
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management system included information about the
candidates which were selected. The information of
candidates according to their experience wise, education
and qualification wise, sourcing wise, level wise, business
and department wise. The data management system was
made with the help of the team with which I was working
with i.e. Sr. employees and my HR head. This data
management system would help the company to maintain
its MIS, but only if the data’s are filled in regularly.
There were a lot of candidates which were selected
by me. From them a lot went on to the next stage of
interview, but the rest were not selected by the HR. And
now there are some candidates placed in Reliance
Communications which were selected by me. Just the
feeling of approval of the selected candidates gave me
boost to work more hard and find some more candidates
for the company. And then the next time I would make it a
point that the candidates selected are worth the job
required.
I also got an opportunity to do Analysis of induction
feedback. Later I got a chance to the compensation
structure at Reliance Communication. I got to study it
from the books on compensation as guided by my
supervisor.
This summer internship has taught me the basics of
Human Resource Management which is there in the
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business, what are the purpose and the importance of HR
in the business. It has also taught me the sourcing activity
as well, how to search good CVs, what points to take care
while scrutinizing the CVs, how to talk to the candidates
while asking them about the vacancy.
After my tenure of working here has benefited me a
lot and has given me confidence in my own work and
decisions. My experience here was more than my
expectation. The work environment which I was not used
to was made very friendly by the team with whom I was
working. And I would remember their help which they
provided me during my tenure of internship.
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BIBLIOGRAPHY & REFERENCES
For the purpose of the preparation of the
project and giving it the valuable paper form, with
an intention that this information can be used by
other also, a helping hand is taken from the most
precious reserve of the knowledge i.e. the books
The books concerned for the accomplishment
of the project are as below: -
Human Resource Management by Aswathappa,
Fifth Edition - 2006
The introduction manual provided by “Reliance
Communications”
Employee’s Handbook
Joining Kit
Book by Kokilaben .D. Ambani, “The Man I
Knew”
The websites concerned are
gm.relianceada.com
www.reliancecommunications.co.in
www.relianceadagroup.com
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www.dhirubhai.net