1.

1 The HR Service Industry While there is no uniform definition for the HR service industry, it we may define it as the rewards derived from an y decision on buying services for any part of the human capital value chain. The HR service industry can be broadly divided into two main functions permanent recruitment of executives and professionals, and temporar y recruitment, specializing in professional and general staffing. HR services are bein g increasingly viewed as a distinct industry with the role of HR consultants evolving with changing market dynamics. Large Indian companies are diversifying into new sectors and prefer candidates with relevant experience. However, since their HR function find it difficult at times to source candidates from the large and geographically dispersed talent pool, companies are increasingly looking at external help. This change in approach and mindset has made sourcing a relatively complex activity, resulting in companies increasingly partnerin g with recruitment consultants with a global footprint or access to global databases to source the right cand idates. The service industry is a people-driven one and is clocking double-digit growth. The service industr y has a large manpower requirement, which facilitates the need for a large HR fun ction to fulfill its growing needs. Since recruitment is not a recurring activity and is a function of economy and a companys growth plans, companies prefer to partner with consultants to source the right candidates as and when required, and have their HR function focus on the core and strategic activities of selection, planning and retention. Temporary staffing is a growing human resource trend and the phenomenon is finally catching up in India. While industry experts estimate employee leasing to be a US$140 billion business worldwide, the domestic staffing industry has yet to witness large figures. The scenario is however set to change as companies are increasingly partnering with consultants, and experts expect that in the near future, 2.5%-3% of the workforce in the country will be hired on a temporary basis.

1.2 Market Size The overall organized HR solutions industry g The overall organized HR solutions industry grew at a C AGR of 21% between FY08 rew at a C AGR of 21% between FY08 FY11 from US $228CR. ( US $228CR. (INR127 billion) to US $4094million (INR228 billion. INR228 billion.)

The HR solutions market was affected by the global economic slowdown, and slowed The HR solutions market was affected by the global economic slowdown, and slowed The HR solutions market was affected by the global economic slowdown, and slowed a year on year at the rate of 34% in FY09 to 13 % in FY11. The slowdown forced 34% in FY09 to 13 % in FY11. The slowdown forced customer organizations to defer their hiring plans and reduce customer organizations to defer their hiring plans and reduce their spend on HR. their spend on HR. 1.3 Industry Structure ructure The HR solution industr y comprises: The HR solution industr y comprises: Permanent recruitment Permanent recruitment Temporary recruitment Temporary recruitment Other segments Other segments

Temporary and permanent recruitment are estimated to contribute 86% to the overall market size. Tempo rary recruitment (staffin g) has the largest share at 73% of the market, since it includes pass through salar y costs. Permanent recruitment has a 13% share and only includes the net fees from each successful referral.

The others categories primarily include small and emerging offerings such as the following: Payroll administration (producing checks, handling taxes, dealing with sicktime and vacations), employee benefits (health, medical, life insurance, cafeteria, etc.) Recruitment process outsourcing,

 HR management and consulting (benefit con sulting, hiring and firing, HR management and consulting (benefit con sulting, hiring and firing, HR management and consulting (benefit con sulting, hiring and firing, background interviews, exit interviews and wage reviews), background interviews, exit interviews and wage reviews), Employment training Employment training Online job portals (sourcing of candidates) Online job portals (sourcing of candidates)

1.3.1 Temporary staffing Temporary staffing

Temporary staffing, one of the leading HR trends today, is ex pected to Temporary staffing, one of the leading HR trends today, is ex pected to Temporary staffing, one of the leading HR trends today, is ex pected to increase its penetration significantly, given the current uncertain increase its penetration significantly, given the current uncertain increase its penetration significantly, given the current uncertain economic conditions. Companies and economic conditions. Companies and captive units are likely to captive units are likely to increasingly depend on agencies to lease th em with the required increasingly depend on agencies to lease th em with the required increasingly depend on agencies to lease th em with the required manpower in time, to meet sudden demand from clients. Temporar y manpower in time, to meet sudden demand from clients. Temporar y manpower in time, to meet sudden demand from clients. Temporar y recruitment has a share of 73% of the overall market, since it includes recruitment has a share of 73% of the overall market, since it includes recruitment has a share of 73% of the overall market, since it includes the pass the pass-through salary costs of employees that are leased to customer s of employees that are leased to customer organizations. organizations. 1.3.2 Permanent Recruitment Permanent Recruitment

Recruitment is expected to evolve from a fragmented ecosystem to Recruitment is expected to evolve from a fragmented ecosystem to Recruitment is expected to evolve from a fragmented ecosystem to players adopting ways to work closely with clients requirements, players adopting ways to work closely with clients requirements, players adopting ways to work closely with clients requirements, where resume pushers (who do not add where resume pushers (who do not add significant value to their significant value to their clients) will eventually get marginalized. Recruitment companies are clients) will eventually get marginalized. Recruitment companies are clients) will eventually get marginalized. Recruitment companies are likely to move away from sourcing relevant candidates to accessing the likely to move away from sourcing relevant candidates to accessing the likely to move away from sourcing relevant candidates to accessing the right ones by using psychometric and other robust tests to shortlist right ones by using psychometric and other robust tests to shortlist right ones by using psychometric and other robust tests to shortlist them.

1.3.3 Other segments Organizations are fast realizing the benefits of outsourcing non-core activities and focusing on enhanced value added activities. Outsourcing non-core activities enables HR professionals to move away from routine administration to a more strategic role. As a result, the number of companies outsourcing HR activities is ex pected to continue to rise and the scope of outsourced HR activities to expand. The HR solutions industry is seems poised for interesting times; with 11 deals in the last three years, the overall sector is expected to keep innovating and evolving toward exponential growth 1.4 Payroll processing and compliance Payroll outsourcing largely involves analysis of organizational data, computation of gross salaries, TDS, allowances, reimbursements of expenses and filing of TDS. Organizations have the option to establish their payroll systems, but it is timeconsuming and requires expertise. Increasing workloads, strategic roles gaining in importance, low costs and the enh anced quality of outsourcin g is driving organizations to outsource their processes. According to a survey conducted by the Society for Human Resource Management, 49% of organizations are outsourcing their payroll processes due to their increasing headcount. This space is dominated by large established players such as Hewitt and Mafoi and small players find it difficult to enter the space, since not all of them provide end-to-end solutions and last-mile compliance, which is an extremely important factor. Fu rthermore, or ganizations are not comfortable sharing sensitive information with less established and known players.

1.5 Major Competitors In Industry COMPETITORS SEGMENTS Mafoi Recruit ment, search and staffing Adecco Recruit ment and staffing Global Innov Recruit ment and staffing Genius Consultants E gon Zehnder ABC Consultants search Heidrick & Struggles Future Focus Search Staffing Search Recruit ment and

Staffing

ADP Paycom NetChex Pinnacle

Staffing and Payroll Payroll Payroll Payroll

Facil Intern et Technologies is a leading technology organization founded by seasoned management professionals and alumnus of IIM and headquartered in the Silicon Valley of India, Bangalore. 2.1 The Four Pillars of Facil

Value Creation V Facil provides products and services that customer finds consistently useful. It typically focuses on product and process innovation and on understanding unique customer needs with ever increasing speed and precision. Innovation V Facil is always focused on the creation of better and more effective products, services, technologies and ideas that are readily available to customers. Quality V Facil believes in delivering the quality product to its customer and fulfilling their needs and expectations. Strategy & Execution - V Execution is a discipline, and integral part to strategy. Facil Bridges the gaps between the customers needs and wants. 2.2 Customer Philosophy Walking in the Customer shoes. Customer is core to Facils business philosophy. All functions, employees, processes, strategy, execution are focused at maximizing Customer Value through Customer Intimacy. Affordability is the key to customer fulfillment and our Research and Development teams are trained to work on innovative solutions, products and services that surround this objective. Our teams are taught to walk in the customers and to understand their contempo rary needs and design solutions accordingly. Our Leadership team closely works with internal teams to gain intimate un derstandin g of our current customers and markets, potential new customers and markets to build team, organization competencies through regular consumer studies, published reports, special surveys etc. All processes are based on the foundation of Outside-In thereby achievin g Customer Delight and Moments of Delight.

2.3 Corporate Governance Facil has a well-defined and enforced corporate governance policy under force addressing the f inancial, compliance and related best practices. The policy ensures adherence of ethical standards and best practices and covers the stakeholders such as customers, employees, shareholders, debt holders, trade creditors, suppliers and communities affected by the corporation's activities. The Corporate Governance at Facil is directed and controlled in a professional, transparent and responsible manner. 2.4 Corporate Social Responsibility Facil recognizes that its businesses should make an impact the earth communities and has designed CSR initiatives to help orphans, physically and mentally challenged, orphanages and sponsoring medical camps for the deprived sections of societies in the urban, semi-urban and rural areas. Facil also has a strong commitment for Clean and Green Environment and has no tolerance for non degradable Plastic usage and other areas that add to env ironmental pollution. New initiatives are being designed to ensure adding value to the society we live and build a clean place for tomorrows generations. 2.5 Mission & Vision Facil aims to make technology affordable, convenient and scalable for Enterprises, Small and Medium Enterprises (SME) and Consumers with an Outside-In Approach. The Outside- In Approach is aimed at creatively delivering value to customers through Customer Centricity and Customer Intimacy through Collaboration and thereby maximizing long-run shar eholder v alue.

2.6 Services of Facil SPARK 2.6.1 - Start Up Payroll Accounting Risk Management Services .This portfolio of service includes IPMS (INTEGRATED PAYROLL MANAGEMENT SERVICES) i PMS is a dedicated payroll processing platform developed by us to O ensure a 360 coverage of all your payroll related issues. A comprehensive and integrated service pack which not only takes care of processing payroll on timely basis, but also integr ates compliance and training as its core competencies. The platform has been designed to empower you and your employees. i PMS has been developed by the best professionals in the business, comprising tax experts, investment and wealth managers, professional trainers and revenue representatives IPMS is for small, medium and Large enterprises. The IPMS service offerings are marketed by Facil and Processed By Balakrishna Consulting(BCL) a MSI Globa lAlliance Member. IAMS(INTEGRATED ACCOUNTING MANAGEMENT SERVICES IAMS is for small, medium and Large enterprises. The IAMS service offerings ar e marketed by Facil and Processed by Balakrishna Consulting (BCL) a MSI Global Alliance Member. 2.6.2 Balakrishna Consulting (BCL) Balakrishna Consulting (BCL) THE BACKEND OPERATION TEAM OF FACIL is a team of Chartered Accountants, Compan y Secretaries, Cost Accountants and Advocates. BCL team is having over 15 years of experience in Corporate Laws. Our expertise services are not just restricted to Company Inco rporation, Company Formation, LLP Registration or assisting in starting your dream

business in across India. Our team assist you at each level to comply with all business in across India. Our team assist you at each level to comply with all business in across India. Our team assist you at each level to comply with all the applicable laws and nurture you to develop your business. the applicable laws and nurture you to develop your business. the applicable laws and nurture you to develop your business. 2.7 Functional Units Functional Units

A business is normally organised by its fun ctions, e.g. marketing department, A business is normally organised by its fun ctions, e.g. marketing department, A business is normally organised by its fun ctions, e.g. marketing department, accounts department and so on. This is because being grouped together allows the accounts department and so on. This is because being grouped together allows the accounts department and so on. This is because being grouped together allows the functions to benefit from specialisation and division of labour. This leads to l functions to benefit from specialisation and division of labour. This leads to l functions to benefit from specialisation and division of labour. This leads to lower unit costs and a greater efficiency. However it can mean that there is departmental unit costs and a greater efficiency. However it can mean that there is departmental unit costs and a greater efficiency. However it can mean that there is departmental rivalry. The various departments of Facil will be explained in later chapters. The various departments of Facil will be explained in later chapters. The various departments of Facil will be explained in later chapters.

2.8 Competitive Advantage Competitive Advantage A competitive advantage is an advantage over competitors gained by offerin g A competitive advantage is an advantage over competitors gained by offerin g A competitive advantage is an advantage over competitors gained by offerin g consumers greater value, either by means of lower p rices or by consumers greater value, either by means of lower p rices or by consumers greater value, either by means of lower p rices or by provid ing greater benefits and service that justifies higher prices. benefits and service that justifies higher prices.

2.8.1 Competitive Strategies Competitive Strategies

Michael Porter suggested four "generic" business strategies that Michael Porter suggested four "generic" business strategies that Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage. The four strategies relate to adopted in order to gain competitive advantage. The four strategies relate to adopted in order to gain competitive advantage. The four strategies relate to the ex tent to which the scope of businesses' activities are narrow versus broad the ex tent to which the scope of businesses' activities are narrow versus broad the ex tent to which the scope of businesses' activities are narrow versus broad and the extent to which a business seeks to differentiate its products. and the extent to which a business seeks to differentiate its products. and the extent to which a business seeks to differentiate its products.

3.1 Organizational Structure The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and ex tent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. A structure depends entirely on th e organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is co ncentrated in the top layer of the management and tight control is exercised over departments and divisions. In a d ecentralized structure, th e decision making power is distributed and the departments and divisions have varyin g d egrees of autonomy. An organizational chart illustrates the organizational structure.

Facil o rganization structure is d efined by the Outside In Philosophy. They strongly believe that customer is the key driver of their business objectives. All internal operations at Facil are designed to address the needs of the C ustomer to bring in Moments of Customer Delight at all times. The board, CEO, Senior, Middle and Junior Management teams are assigned to the Customer and address their needs and Work to make things possible. As Facil is a startup it is a having a Flat organization (also known as horizontal organization) hierarchy which means o nly few or no levels of intervening management between staff and managers. The idea behind is that welltrained workers will be more productive when they are more directly involved in the decision makin g pro cess, rather than closely supervised b y many layers of management. 3.2 Advantages Customer-Centric Focus People who service customer needs understand who the target audience should be, what their needs are, how they view pricing, and how to sell the product. In a flat organization, managers are brought into the process of accomplishing work for clients while workers are asked to make more decisions, bringing them more into the management arena. A flat organization moves everyone closer to the customer so that everyone understands the needs of those people using the product or service. Employee Empowerment Less managers mean that in many cases, employees need to be able to make decisions without intervention from a higher layer of authority. More training of emplo yees so that ever yone better understands how a company can achieve its goals and keep customers happy. In the long term, emplo yees are freer to service the customer as they'd like, which leads to higher retention of employees with higher job satisfaction and also more satisfied customers. Flexibility Organizations relying on a flat structure need to cross-train employees to fill in for others quickly when special situations arise. This crosstraining makes the organization more reflexively when problems arise, and creates a speed y growth business, which is able to solve customer problems and fix any complaints that arise faster than a traditional organization.

Accountability Often in a traditional operation it's easy to "pass the buck" to another employee. Because a flat organization needs welldefined ar eas of focus, employee accountability is much higher. This makes it easier f or managers to assess strengths and weaknesses of employees and look for sales or efficiency opportunities in the system. Cost A flat organization is less costly because there are less people in the management chain and more persons touching the end product or service. Cost per piece of product falls dramatically as layers of management overhead are reduced. New hire training costs also lower as retention levels increase.

3.3 Disadvantages Confusing Leadership In a flat organizational structure, the layers of leadership are few but leadership tends to be more organic in nature. Since managers are on equal footing and involved in the same projects together, they may give employees different tasks in a confusin g manner. Unless the process is very clear, an emplo yee may be trying to work for two bosses at the same time, leading to confusing and contradictory instructions. Limited Structures Flat organizational structures can only last so long. As a business grows and eventually goes public, the flat structure cannot stay. A public busin ess needs a board of directors to evolve into a corporation, and a more complex business structure to expand into multiple branches. Employee Role Confusion Just as manager roles can become confused in a flat structure, so can employee roles. An employee may go to work for a flat or ganization expecting to do one job, but find out that pieces of many other jobs are also required as needed. This makes it difficult for some employees to focus and specialize at their jobs.

3.4 Impact on Employees Accuracy Flat organizations do not have this issue as there are less layers or people for the message to travel acr oss. Communication accuracy increases greatly in flat organizations. Speed Speed of communication is a big advantage for flat organizations. In a flat organizational structure, only one or two approvals are usually necessary and this speed allows new products and services to be implemented faster and with less red tape. Speed increases with fewer levels of man agement. Ownership Flat organizational structures produce a greater degree of ownership within an organization. Employees who are closer to the customer are more accountable for their decisions and can take action on the spot to please a customer. Your employees feel more empowered and responsible fo r their actions when they do not have to seek permission from several layers of management. Ownership of your employee's job duties is a major benefit of flat organizations. Employees act more like owners when they feel that their d ecisions affect the success and profitability of your company. Effectiveness Your employee's effectiveness also increases in a flat organization. Rules, regulations and reporting structures are much less complicated. Understanding expectations and assignments is easier when there are only one or two managers involved in supervising an employee or department. Conflicts between departments is reduced with a flat organizational structure and cooperation increases when everyone needs the assistance of others to succeed. Fewer layers of management allows your associates to operate with greater flexibility which leads to fewer co nflicts and increased effectiveness for ever yon e.

4.1.1 Production Department The main role of production is to turn inputs into outputs. Outputs refer to a finished service and inputs are the data that are needed to make salary slips. When a business completes this process they are able to achiev e customer satisfaction by producin g service that is ready to be used and fit for purpose. The production department is responsible for ensuring quality is achieved in each service provided. They will need to carry out inspections and implement suitable quality initiatives. This is one of the major duties of this department because if mistakes are made on service, customer satisfaction will be decreased or if service is ruined during the production process it means that the compan y will have to throw "bad" service. Both aspects will lead the company to a loss of profit. Quality assurance will have to be carried out every day on a number of occasions to ensure that the production process is working efficiently and effectively. At Facil, production department ensures that employees are paid accurately and on time and that the company complies with all payroll tax laws.

4.1.2 Production Planning and Control Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to b e taken at the right time and in the right place and each op eration to be performed in maximum efficiency. It Facil to work out the quantity of material manpower, machine and money requires for producing predetermined level of output in given period of time.

Once Facil takes the order from a client regarding the payroll processes its next task is to take steps for production planning and control, as this function is essentially required for efficient and economical produ ction. Planned production is an important feature of Facil. The ability to look ahead, organize and coordinate and having plenty of driving for ce and capacity to lead and ability to supervise and coordinate work and simulates his associates by means of a programme of human relation and organization of employees, Facil would be able to get the best out of his production unit. 4.1.3 Production Process Facils backend team is responsible for the recording of payroll data, including adjustments and supplements, into the Payroll System in accordance with laws and regulations as applicable. Following points is to be taken into consideration while processing the payroll: 4.1.3.1 Record Payroll Data Payroll system is checked and set up if necessary to ensure that emplo yee data is included Payroll data is check ed and discrepancies are clarified with designated persons Employee pay period details, deductions and allowances are entered in payroll system in accordance with source data Payment due to individual emplo yees is calculated to reflect standard pay and variations in acco rdance with employee source data 4.1.3.2 Prepare Payroll Payroll is prepared within designated timelines in accordance with organisational policies and procedures Employee entitlements are calculated, recorded and reconciled in accordance with legislative requirements Total payments for pay period are r econciled, and irregularities are checked and corrected, or refer red to designated p ersons for resolution Arrangements for payment are made in accordance with organisational and individual requirements

 Authorisation of payroll and individual pay advice is obtained in accordance with organisational requirements Payroll records are produced, ch ecked and stored in accordance with organisational policy and security procedures 4.1.3.3 Handle payroll enquiries Payroll enquiries are r esponded to in accordance with organisational and legislative requirements Information is provided in accordance with organisational and legislative requirements Enquiries outside area of responsibility or knowledge are referred to designated persons for resolution Additional information or follow-up action is completed within designated timelines in accordan ce with organisational policies and procedures 4.1.3.4 Maintain payroll All information and record keeping relating to the payroll function is maintained in accordance with relev ant legislation and regulations Month-end and year-end checklists ar e produced and reconciled to ensure compliance with relevant legislative and management deadlines Records and systems are updated in line with salary reviews and other changes in employment status Back -up and disaster recovery systems are put in place Payroll reports are generated and distributed in line with organisational policy Business Activity Statement data is extracted and applied in accordance with relevant legislation and regulation

o Pay the net pay due, biweekly, by electronic fund s transfer (direct deposit) to the employees financial institutions. o Promptly make payment in the proper amount to all persons entitled to be paid, in compliance with applicable laws, regulations. o Prepare adequate and r eliable payroll r ecords. o Promptly record accounting entries for the disposition of all authorized deductions from gross pay. o Maintain adequate control over, and provide adequate retention and disposition of, all payroll related documents. o Maintain individual pay records to show gro ss compensation (including allowances) by type and amount, deductions (including allotments) by type and account, and net pay for each period.

o Review payroll operations continually and adjust them to be as efficient, effective, and economical as possible, and ensure that payroll systems are in accordance with all legal requirements. 4.1.4 Production Schedule It means working out of time that should be required to perform each operation and also th e time necessar y to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns with time element and priorities of a job. The main aim is to schedule that amount of work which can easily perform without interference. Its not independent decision as it takes into account following factors. 1. Computer systems to process the payroll service. 2. Personnel who possess the desired skills and experience to operate the equipment and perform the typ e of work involved . 3. Necessary data to p rocess payroll. 4.1.5 Production System 4.1.5.1 Just-in-Time Production System The essence of JIT philosophy is to eliminate waste. Managers try to (1) reduce the time that products spend in the production process and (2) eliminate the time that products spend on activities that do not add value At Facil Just in time (JIT) refers to a system in which pay slips reaches at the right place exactly as they are n eeded. In other words, in a JIT setting, demand triggers each step of the production process, starting with customer deman d for a finished service at the end of the pro cess. V Necessary Tools for JIT Implementation A JIT production system, as explained above, aims at minimizing workingprocess and reducing lead-time, and increasing service quality. In order to achieve these b y implementing a JIT manufacturing system, the following aspects should be put into consideration and then operation

V Establishing Reliable Relationships with customers Establishing JIT production system at Facil, clients must be able to provide reliable data on time because in JIT setting, there is no allowance for the stoppage resulting from the lack of data. If any stoppage occurs, compan y will not be able to offer the service to customers on time. In other words, lead-time will be longer. Furthermore, Salaries will be delayed which causes demotivation in employees. Therefore, successful JIT production depends largely on working with cooperative and reliable customers. 4.1.5.2 Total Quality Management (TQM) Total quality management is a general philosophy of gradu ally improvin g the backend operations of Facil through the application of rigorous process analysis by ever y involved employee and business partner. TQM is usually applied at the tactical, front-line level, where production, clerical, and lowlevel managers are deeply involved. There are a number of tools available to assist in a TQM effort, such as: Benchmarking Accuracy Failure analysis Plan-do-check-act (PCDA) cycle Process management Product design control Statistical process control

4.2.1 Finance Department Objectives To Manage & account for the financial resource of the Organization, to forecast its requirement in the future and plan accordingly and to check for deviation. Report the financial performance of the company to Management, and to comply with the Govt. rules and regulations 4.2.2 Functions of Finance Department Some of the main functions are Payroll, billing, Preparation of journal, ledger and trial balance, Bankin g, Financial resources & materials accountin g, Budget preparation, Cost accounting, Auditing, Preparation of financial statements & reports, Corporate Planning. 4.2.3 Process of Finance Department Finance department in Facil is divided into five sections for carr ying out its process. They are: Bills & Materials Sales Costing, MIS, Budget Cash, bank & Payroll and Tax & duties 4.2.3.1 Bills & Materials - The main functions is to record accounting and receiving, Dispatch and holding of bills 4.2.3.2 Sales Accounting Accountability for selling and distribution of services. Recording the transaction Transfer of information from depots to HO Compilation of reports

4.2.3.3 The Costing, MIS And Budget Section This section is concerned with ascertainin g the cost of mark eting the services, providing information, helping to prepare a budget, forecasting the performance and finally making a plan. Fixed cost V - Salaries and wages (Direct, Indirect, Administration & Maintenance), Staff welfare expenses, Insu rance, office maintenance, Depreciation, Administrative overheads, bonus. V MIS (Management Information System) To provide the management with vital facts which affects the efficient running of the business for decision making on planning, organizing and controlling the major activities of the organization and initiating suitable action. MIS Briefly consists of: Monthly report of all the expenses is prepared P & L Account-Statement and its analysis Production performan ce of the division Inventory position Cost of production - Actual and budget for the month Specific information important for the management - Major projects, man-hour utilisation etc.

Budgeting V Two types of budget - Revenue and Capital budget Two types of estimates - Bud get estimate and revised estimate 4.2.3.4 Capital Expenditure Shows all items of capital ex penditure to b e und ertaken during the budget period like expenditure on acquisition of new assets like machiner y, furniture and office equipments which have reasonable life; expansion of existing facilities and modification and improvements to plant and machinery resulting in i) increase in capacity ii) Increase in useful life

iii) Improvement in quality of output and iv) Reduction in cost of output is treated as capital expenditure. V Monthly report On closing of the accounts of the months a monthly P & L account is prepared. This report would give a comparison of the actual for every month against budgeted performance. 4.2.3.5 The Cash, Bank And Payroll Section This section is concerned more with the day to day activities and less of future forecasting & planning. V Cash And Bank Accounts Section The various functions include: Receipt of cash, chequ es, bank drafts, and postal money orders Payment of cash, ch eques, bank drafts, and letters of authority Handling of bank deposits/withdrawals, custody of cash and inter unit transfer of funds Maintenance of petty cash books and cash books Reconciliation of bank accounts Security arrangement of cash handling Safe custody of valuable documents Cash interests calculation Any other duties assigned by authorized officer V Payroll Section Functions of the section are: Preparation and disbursement of salaries and wages to managerial and non-managerial employees Effect various recoveries through payroll and remit the same to concerned agencies Processing of various personal payments advances Keeps books of account for the above tr ansaction

4.3.1 Marketing Department The marketing department must act as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. Communication is vital. The marketing department typically has a better understanding of the market and customer needs, but should not act independently of product development or customer service. Marketing should be involved, and there should be a meeting o f the minds, whenever discussions are held regarding new product development or any customer-related function of the company. As Facil is into service industry it offers Business to Business (B2B) services and Facil offers Payroll services. starts marketin g by identifying customer needs and wants through Market Research and ends with satisfying them through a coordinated set of activities that also allows a Facil to achieve its own goals, profitably. Facil strongly follows the basic concepts of marketing i.e. the 4 Ps of marketing.

4.3.2 Customer Relationship Facil believes in Customer is King Philosophy therefore; the relationship with customers is the core part of its business. The positive relationship determines whether customers will walk in to Facils doors, buy a service, and return in the future.

V Focus on meeting needs Facil fo cuses upon solving the problems of the customers instead of only marketing its service. Facil makes the customer to focus on the core part of its brand and h elps them to understand how they are going to solve their problems. V Make all interactions as pleasant as possible Facil b elieves in maintaining a health y, ongoing relationship with its customers. From the way you and your emplo yees answer the telephon e to the way you handle returns, all customer interactions should be streamlined and managed in a way that the customer comes out feeling like a winner. As with human relationships, business relationships are developed over time through positive interaction. V Create an aesthetically pleasing environment

Facil follows the Studies which have always shown that the public prefers attractive people for both personal and business relationships. While aesthetics arent ever ything, they are a huge part of the overall picture. This means that creating clean and attractive spaces, both in ph ysical locations and websites, is a key part of nurturing the customer relationship. V Put yourself out there Facil is always in the public eye in a variety o f ways, offering brand-consistent information that creates curiosity and encourages its target customer base to develop a relationship with Facil. Invite the customer to do business with you through marketing, including traditional advertising as well as nontraditional methods such as social networking and community involvement. V Touch base frequently After p roviding the services Facil asks their customers for feedback. It Shows you care about their satisfaction level speaks volumes about your commitment to them. It can also provide you with an opportunity to gain insight on other products and services that you can offer to gain new business. If they have not done business with you in a while, check to see how you can help them. It may also serve as a reminder that they may need your product or service.

V Pick up the phone Facil always keeps in touch with customers via phone calls and e-mails. It is important to call occasionally and to touch base with your customers. Personal interaction is an important element in building a relationship. V Branch out Facil always have a particular target market in mind, but to reach it doesn't mean that it networks with just that group. Facil finds groups that don't mirror its target mark et and build relationships with their members. That is the benefit of networking. People you meet kno w people who might be future customers. V Write a note Facil adds the personal touch of a thank you note to show customers your appreciation for their business is priceless. For the best impact, send it immediately after the event. V Be prompt with inquiries It shows Facils commitment to a high level of service and establishes confidence in it. Also, if an issue arises, Facil takes action and make it your priority to resolve it immediately. Sometimes errors and how we resolve them provide an exceptional opportunity to show our commitment to the customer--take a bad situation and make it a positive. V Listen, listen, listen Facil always searches for a gateway to providing a personal touch to its customers. They jot down the very basic details of the customers like birthdays, anniversary etc. and follow-up call 4.3.3 Sales Force The Sales Force at Facil plays a key role in the success and failure of Facil. It is the one who plays a pivotal role in achieving the sales targets and ev entually generates revenue for Facil. The Sales Force is always very clear about his role. He should know what he is supposed to do at the workplace.

 Sales Team is responsible for meeting the sales targets of the organization through effective planning and bud geting. The Team divides the tasks in a way that it should be delegated as per the interest and specializations of the individuals. The team devises strategies and techniques necessary for achieving the sales targets. Sales team maps potential customers and gener ate leads for Facil and should look forward to generating new opportunities for the organization. Sales team is also responsible for brand promotion. They must make the product popular amongst the consumers. Sales team goes on field, meets the clients and gener ates business. They also responsible to maintain customer relationship. 4.3.4 Market Research Market research is a organized effort to gath er information about markets or customers. It is very important component of business strategy. Market research is a key factor to get advantage over competitors. Market research provides important information to identify and analyze th e market need, market size and competition.

4.3.4.1 Collection of Primary Data Collection of Primary Data Facil performs the market research through Management Trainees and Facil performs the market research through Management Trainees and Facil performs the market research through Management Trainees and MBA interns. They collects the data through: interns. They collects the data through: Interviews Interviews (either b y telephone or face-to-face) Surveys (online or by mail) Surveys (online or by mail) Questionnaires (online or b y mail) Questionnaires (online or b y mail) Focus groups gathering a sampling of potential clients or customers and Focus groups gathering a sampling of potential clients or customers and Focus groups gathering a sampling of potential clients or customers and getting their direct feedback getting their direct feedback

Some important questions What factors do you consider when purchasing this service? What do you like or dislike about current services currently on the market? What areas would you suggest fo r improvement? What is the appropriate price for a service? 4.3.5 Potential Customers

4.3.5.1 IDENTIFICATION Facil asks its existing client base. They know the company; Facil communicates with them regularly to learn about their social networks for future referral possibilities. They collect feedbacks with questionnaires or at meet ups to refine their current offerings and sharpen new client targeting. Facil researches market's customer demographics, lifestyle, values and mindset. By using local resources; regional newspapers, census data, trade publications, Chamber of Commerce reports and industry white papers to gain market knowledge. 4.3.5.2 UPDATES Facil keeps it clients always updated with its new services and offers. They believe in serving a client in way they themselves want to be served means providing better and efficient services. So Facil always keeps a touch with its clients and keep them updated throu gh phone calls, e-mails, face-to-face meetings etc.

4.4.1 General Information Human resource management is one of the most complex and challenging fields of endeavor. It is considered to be the most expensive and important resource of ever y organization. Human Resource capability remains a key source of the Companys competitive advantage. The Company continues to place emphasis on enhancement of skills and capabilities of its people for meeting futur e challenges. The key areas of human resource developments are training, competency development and skill enhancement. The Company continues to implement best practices and innovative initiatives to meet the challenges in acquiring and retaining talent against intense co mpetitive pressures. As the Company takes on projects with higher complex ities and expands its business, the need to reinforce the human resource capabilities becomes more critical. 4.4.2 Objectives V To maintain the optimum manpower required to sustain the growth of Organization. V V To motivate and manage human resource and train them to ensure their personal V and organizational development. 4.4.3 Functions of HR Department Organizational human resource plannin g & development Recruitment & selection Wage & Salary administration Employee records maintaining Performance app raisal Welfare pro gramme Job evaluation Handling employee grievances Handling the legal issues within & outside the Organization

4.4.4 Process of HR Department The human resource department has 3 blocks which are: Establishment Industrial relation Welfare 4.4.4.1 Establishment Section The main functions are: Recruitment & selection Transfer, rotation and placement of employees in consultation with divisional heads Wage and salary administration Performance Appraisal Retrenchment 4.4.4.2 Industrial Relation Industrial relation operates only within the Organization. The Inter organizational relation is handled by the corporate cad re. 60 to 70 % of management time is lost in resolving IR issues. Therefore the H.R department is of paramo unt importance. The main functions are: Communication between management and trade u nions Grievance handling Settlement of dispute Handling disciplinary action Safeguardin g Emplo yee rights

 Career related issues like promotion, transfer & rotation Resolving daily petty issues 4.4.4.3 Welfare Welfare schemes can be divided into Statutory, Agreement, Voluntar y and In centives The main objective of welfare measures is to maintain health y working environment and raise the standards of living of employees which create harmony to the society and finally to the organization. Facil has always maintained ver y healthy measur es. Following are the various facilities provided b y Facil to their Employees. V Statutory and Agreement scheme Health, saf ety, welfare Transport facilities Leave & holidays Local trav el ex penditure Conveyance Allowances Payment of gratuity Act, 1972 Employees welfare fund V Voluntary Scheme and Incentives scheme Production incentives & Business incentives In centives for employees & Suggestion scheme

4.4.5 Talent Acquisition Talent acquisition is the targeted recruitment/acquisition of high performing teams. Organizations requiring ex ternal recruitment or head-hunting firms are now employing "talent acquisition" specialists whose job it is to identif y approach and recruit top per forming teams from competitors. This role is a highly specialised role akin to that of a traditional recruiter/h eadhunter specialist but carr ying greater visibility and strategic importance to a business. 4.4.5.1 Talent Acquisition Process Identify vacancy Prepare job description and person specification Advertising the vacancy Managing the response Short-listing Arrange interviews Conducting interview and decision making

4.4.5.2 Sources of Recruitment Sources of Recruitment V Educational Institutes Educational Institutes

Various management institutes are a good Various management institutes are a good source of recru source of recruiting for Facil. They provide facilities for campus interviews and placements. . They provide facilities for campus interviews and placements. . They provide facilities for campus interviews and placements. This source is known as Campus Recruitment. This source is known as Campus Recruitment. The major sour ces of The major sour ces of campus recruitment for Facil are: campus recruitment for Facil are:

Internet Recruitment Services The Internet has revolutionised the recruitment world, drastically changing the way companies and recruitment agencies look for quality talent. The Internet is probably one of the greatest recruitment resources available to Recruiters. Facil is recruiting on the Web whether through:

4.4.6 Training and Development The principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. As Facil is a startup it focuses much o n training the emplo yees so that they can effectiv ely work on the mission and vision of the organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. Individual Objectives V help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization. Organizational Objectives V objective b y bringing ind ividual effectiveness. Functional Objectives V suitable to the organizations needs. assist the organization with its primary

maintain the departments contribution at a level

Societal Objectives ensure that an organization is ethically and socially V responsible to the needs and challenges of the society.

4.4.7 Performance Performance Appraisal

A performance appraisal performance appraisal or performance evaluation is a systematic and periodic is a systematic and periodic process that assesses an individual employees job performance and productivity in process that assesses an individual employees job performance and productivity in process that assesses an individual employees job performance and productivity in relation to certain p re relation to certain p re-established criteria and or ganizational objectives established criteria and or ganizational objectives.

Facil has adopted 360 degree performance appraisal method which is the most Facil has adopted 360 degree performance appraisal method which is the most Facil has adopted 360 degree performance appraisal method which is the most comprehensive appraisal where feedback about the emplo yees performance comes comprehensive appraisal where feedback about the emplo yees performance comes comprehensive appraisal where feedback about the emplo yees performance comes from all the sources that comes in contact with the emp from all the sources that comes in contact with the employee on his job. loyee on his job.

4.4.8 Grievances Grievance is all about violation of the contract, practices, rules and regulations. As human beings are different there is bound to be grievances among employees leading to conflicts at the workplace. To avert any kind of conflicts within the organization, there is need for a proper grievance procedure so that the employees feel that their grievances are addressed and redressed. 4.4.8.1 Grievance Handling Id entify the grievan ce and acknowledge the same. Listen carefully to the complainant. Define the griev ance clearly. Gather the complete information with facts and figures. Analyze and search for multiple solutions to the grievance and finally select the best feasible and possible solution and implement the same. Ensure that there is follow-up at each stage for successful grievance pro cedure. Prescriptions during Grievance Procedure: If you are not the appropriate person, refer to the right person. Spend adequate time with the complainant. Be cool and composed d uring the process. Check for facts and figur e rather than hearsay. Practice attentive listening skills. Find out what bugs the complainant. Dont have an y preconceived notions about the involved parties. Dont threaten people. Always try to settle the grievance at the lower level amicably rather than dragging to the higher levels where it might become more complicated. Conduct the grievance hearing privately. Make necessary changes, if there are any irregularities in policies and procedures. Keep the entire grievance process confidential. Always make the process win-win situation.

4.4.9 Employee Motivation Motivation is a set of forces that dir ects an individual to the behavior that results in better job performance. A motivated employee might work harder than expected to complete the task, proactively find ways to improve the quality and efficiency of the work environment. Level 1: Safety and Security Along with a ph ysical sense of well-being, there must be a psychological belief that the environment is free of fear, intimidation or harassment. Level 2: Rewards Many organizations offers cash and kind rewards to the employees on their performances. This helps them to keep their performance in a growing stage. Level 3: Affiliation This is a sense of belonging. It includes being "in the know" and being part of the team. This is also where a differen ce in personal and organizational values can have a big impact on motivation. Level 4: Growth Employees want to have the belief that achievement is taking place. I might feel safe, get all the money I want and feel part of the team. But if there are no growth opportunities, I might think about leaving the compan y. Level 5: Work/Life Harmony This term speaks for itself. Someone might have all the rewards that he/she wants, but he/she will burn out sooner or later if they don't have the time to spend it on the other things they want. Level 6: Fun Activities Facil organizes the fun activities to motivate the employees and make them to learn the things along with learning. Quiz, Team Building Games etc

4.5.1 General Information General Information

The IT department in The IT department in the organization is like a back bone of the organization. It the organization is like a back bone of the organization. It serves all the back end operations and helps all the departments and organization to serves all the back end operations and helps all the departments and organization to serves all the back end operations and helps all the departments and organization to achieve th eir goals.

The role of IT department department in the organizations is to deal with all of the issues in the organizations is to deal with all of the issues regardin g the technology. The three major functions in an organization are Finance, g the technology. The three major functions in an organization are Finance, g the technology. The three major functions in an organization are Finance, product and marketin g. Today because of the advancements in the technology product and marketin g. Today because of the advancements in the technology product and marketin g. Today because of the advancements in the technology companies hav e Information companies hav e Information Technology Departments. The aim of IT of IT department is to provide technological support to the whole or ganization wherever needed. to provide technological support to the whole or ganization wherever needed. to provide technological support to the whole or ganization wherever needed. IT department also keeps on searchin g new tools and software which may enh ance also keeps on searchin g new tools and software which may enh ance also keeps on searchin g new tools and software which may enh ance the efficiency of the organization. In addition, whenever the company faces the efficiency of the organization. In addition, whenever the company faces the efficiency of the organization. In addition, whenever the company faces technological issues then IT technological issues then IT department is responsible to solve the problems solve the problems.

4.5.2Support Of IT T Department To Other Departments Department To Other Departments 4.5.2.1 Marketing Department Marketing Department Marketing professional always looks for the way to do something Marketing professional always looks for the way to do something Marketing professional always looks for the way to do something amazing to impress th e clients, to get the job done faster and to grow amazing to impress th e clients, to get the job done faster and to grow amazing to impress th e clients, to get the job done faster and to grow the business. the business.

 Facils IT department helps the marketing professional to make effective presentations to present to the client. The IT department also helps them to perform the market research through web surveys. It saves lots of time and helps to analyze the current scenario of the market. The various IT tools also help to understand the consumer behavior, customer preference and taste through past records which will be kept safely only with IT department. Each and every detail about the client will be kept safely for future contact and to build relation with the customers. IT department also helps to market the organizations services through online and save cost. 4.5.2.2 Finance Department Information technology plays a key role in the Finance Departments V Harmonize Financial Processes As the role of financial information technology should be to support financial processes, the first crucial action is to standardize financial processes across the or ganization. It minimizes the number of chartered accounts or global entities, and harmonize financial processes. V Automation, Automation and Automation The key activity for Finance Departments looking to control costs is automation. The finance departments are starting to reverse the trend for transactional process . Tools such as these help Finance Departments digitize the whole financial process, from e-invoicing to payment allocation, with the so-called three-way match (invoice, PO and receipt). Through automation the whole process is sped up and errors such as duplicate payments are virtually eliminated. Ultimately the system will give the finance organization more control, such as through enforcing budget checking, so that users are warned about going over bud get before ordering. It will also allow companies to standardize on suppliers and gain economies of scale by channeling users towards approved suppliers.

V Trading Financial trading is enhanced with information technology. Some computer systems even trade for the users. A system is programmed to enter buy and sell orders when the price of a stock or bond reaches a certain level, and automatically closes the order when the target price or the stop-loss is reached. C omputer based trading is useful when a trader has a system that allows profitable tr ading and does not want to enter each order individually. Information technology provides instant information for stock traders to make decisions, and allows them to enter ord ers that are immediately executed. 4.5.2.3 Production Department Facil offers payroll services so the IT departmen t play very crucial role in the production of the service. The overall produ ction of Facil is depends upon the IT department. The IT department helps to generate the business b y maintaining the payrolls of the clients. The IT services saves time which results to improved productivity. 4.5.2.4 Human Resources Department It is important to look forward for the changing trends in technology which can have an impact on the HR practices. Understanding these changes will help smart managers to adapt and flourish. Once you exploit these changin g trends, you can ver y well have the advantage over other players in the global market. The wide range of impact of technology on HR can be clearly viewed on the HR functions such as: Recruitment Training & development Performance management Payroll & attendance records Employee benefits etc

In case of Recruitment, IT has a highly positive impact. E-recruitment is the use of technology or web based tools to support the recruitment process. The major ways of r ecruitment, which companies commonly use are b y displayin g the career opportunities on their websites, depending on the job portals for making the potential hires and using social networkin g sites (SNS) for getting the d atabase. The major advantages of this e-recruitment are: Economical way to publish job openings Greater reach

 An easy tool to get connected to people with niche skills Speeds up the recruitment process (faster posting of jobs, quicker applicant response, and rapid hiring). 24*7 access to the online resumes. V Virtual Organization Virtual organization is the network of companies or employees connected b y computers. Virtual workers can work from wherever they want, from home, car or abroad. Human resource department has significant role in virtual organizations. As the employee in a virtual organization doesnt meet face to face, it is the HR managers responsibility to create a psychological connection between various units and their work ers. HR department has to take care of the alignment of the organizations vision, mission and goal with the workers objectives. Finding potential hires with the requisite skills for the virtual organization become another challenge for the HR department. Creating a feeling of belongingn ess among the workers and managers can help in meeting their responsibilities in an effective way.

5.1 SWOT ANALYSIS SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business. SWOT Analysis of Facil