report on telecommunication industry at reliance

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INDIAN TELECOM INDUSTRY AT A GLANCE 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. Lea rni ng fro m the experi ence of develo ped cou ntr ies , Ind ia 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 indust ry and determines pol icy gui delines. The Telecom Reg ulator y Authori ty of India (TRAI) is the reg ulato ry bod y that determines toll rates and act as a dispute settlement body. Many players 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 tel eph ony and using tel ecom to impro ve peo ple ’s li ves. Cir cle : 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 In di a and were di vi de d in to A, B an d C catego ri es. Th ese 1

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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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