An Interim Report on

A study on HR Practices followed

In the Telecom Sector

Submitted By
Sec. E

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Table of Content

Particulars Page No.

Acknowledgement 3.
Abstract 4.
Introduction 5.
Industry Overview 6.
Project Overview 8.
Objectives, Methodology & Limitations 9.
HR Practices understood 10.
Road ahead 14.
Annexure 15.
Bibliography 19.

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 Acknowledgement

Generally the art of appreciation takes the form of “Thank you”. But it is always less with
respect to the help & guidance provided. For me, those words are always insufficient when it
comes to appreciate the given help.

We would like to thank Prof. Y K Bhushan – Director, IBS Mumbai for providing us the
opportunity to work upon such a practical study. We would like to thank the “Spandan” team;
for providing us the chance to understand the basics of business activities & exposure regarding
HR practices & Research work.

Date :

Place :

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 Abstract

Human Resource considered as an asset of the organization; needs to be managed as to ensure

the optimum utilization of the same. There are various functions which fall in the gamut of
Human Resources Management.\

This Project deals with understanding the best HR practices followed in the various telecom
companies. It deals with finding out the recruitment parameters, Training Needs to increase the
Performance of individuals, and the remuneration and incentives provided. The project also
focuses upon the broader aspect of practices followed towards employee satisfaction, career
growth opportunities and grievances handling mechanism.

A Research based analysis would be done to understand the various HR practices. Secondary
research & Literature review would help in understanding the fundamentals of HR functions &
various practices which can be adopted to execute the functions.

A primary research would lead to the data collection about the practices which the various
companies have selected to execute the functions of HR. The same would also help in defining
the “Best practices”

The research would be followed by providing some valuable Recommendations which would
help to improve the HR functioning done in the Companies in the Telecom sector.

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Introduction

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 Industry Overview
The telecom sector has registered tremendous growth over the years. As a
result, India has become the third largest telecommunication network in the
world. The subscriber base is increasing manifold which is about 635
millions and the country has emerged as the fastest growing telecom
market in the world. After the liberalization process and end of the licence
Raj politics; a conducive environment for flourishing Telecom sector has
been established.

Trends in telecom subscriber base and Teledensity in India

The FDI inflow in the telecom sector has taken a centre stage due to low
penetration levels in rural areas, strong economic growth and easy
availability of skilled resources. Stiff competition has played vital role in
steep declining call rates and handset cost. Companies are developing
innovative marketing strategies for consistence growth because saturation
point has not come in the market scenario.

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The Department of Telecommunications (DOT) under the Ministry of
Communications department is responsible for formulating the
developmental policies; granting licenses for various telecom services;
promoting standardization, research and development as well as private
investment in the sector. As per proposed regulations 74% to 100% FDI
permitted for various telecom services.

Market Shares of various telecom players

The major players operating in different telecom circles across the nation
are providing voice, non-voice and value added services. In this market
scenario the major telecom players are consistently working upon their
organizational effectiveness to sustain in the long run of operation. Hence
the aim of the study is to epitomise on their HR best practices and to come
up with innovative solutions

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 Project Overview

“HRM is the function performed in organizations that facilitates the most

effective use of people (employees) to achieve organizational and individual
goals.”

HRM is a vast function of management & deals with…

• Acquiring Employees
• Developing Employees
• Motivating Employees
• Retaining Employees

HRM focuses on various functions like…

• Managerial Functions
• Operative Functions
• Human Resource Development Functions
• Compensation Management & Grievance Handling
• Employee Relations

There are various practices which can be adopted to execute the above
mentioned functions. The project deals about understanding practices
followed to execute the functions of HR like Recruitment, selection &
Induction, Training & development, Performance appraisal & management,
compensation & reward management, grievance handling mechanism etc.

The main purpose of the study is to extract as much information as possible

pertaining to the HR best practices. The exciting aspect is to discover some
unique practices followed in some companies and how they are
implemented, and thus to ascertain any new and upcoming trends.

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 Objectives of the Study

• To gain proper understanding of HR practices in various companies.

• To study the HR policies and practices of telecom companies.
• To analyze the data collected from both primary and secondary research.
• To provide recommendation and solution on the research conducted
about the specific companies.

Research methodology

Primary Research is the first data which is collected through visiting

various telecommunication companies. In this aspect a detailed
questionnaire has been prepared different telecom companies will be visited
which includes Vodafone, Airtel, Reliance Telecom, Spice, Videocon, Idea
Cellular, Tata Indicom, Aircel , BSNL,MTNL & Uninor.

Secondary Research is done from various data which are already

collected by different sources and is used for our research. Different sources
such as internet and publications are taken into consideration for the same

Limitations
1. Obtaining access to different HR personnel of all the targeted companies.

2. Not all the information required from the questionnaire may be revealed
due to company’s privacy policies.

Human Resource Practices Understood

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What is Human Resource (HR)..??
Human resource is a term used to describe the individuals who comprise the
workforce of an organization, although it is also applied in labour economics
to, for example, business sectors or even whole nations.
Human resources is also the name of the function within an organization
charged with the overall responsibility for implementing strategies and
practices relating to the management of individuals (i.e. the human
resources). This function title is often abbreviated to the initials ‘HR’.
What are HR Practices..??
Human resource practices are systems of codified decisions, established by
an organisation, to support administrative personnel functions, performance
management, employee relations and resource planning.
Each company has a different set of circumstances, and so develops an
individual set of human resource practices for different HR functions.
Why HR Practices..??
HR practices allow an organisation to be clear with employees on:
• The nature of the organisation
• What they should expect from the organisation
• What the organisation expects of them
• How practices and procedures work
• What is acceptable and unacceptable behaviour
• The consequences of unacceptable behaviour
HR practices can also be very effective at supporting and building the
desired organisational culture.
For example… Recruitment and retention practices might outline the way
the organisation values a flexible workforce, compensation practices might
support this by offering a 48/52 pay option where employees can take an
extra four weeks holidays per year and receive less pay across the year.

Flow of the Study undertaken

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HR Functions & Understanding of various HR practices Followed

Various HR practices are followed to execute the functions of HRM; which

includes…

Recruitment & Selection

It is a process of finding and attracting capable applicants for employment.

The Recruitment process begins when new recruits are sought and ends
when their applications are submitted. The result is a pool of applications.
The selection process begins from this stage and ensures the right person
from the available from the pool is selected for the job.

Any company can follow the practice to recruit people from internal sources
or the external sources. The various sources can be defined as follows…

Sources of Recruitment

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Compensation & Rewards Management
Compensation is the remuneration received by an employee in return for
his/her contribution to the organization. It is an organized practice that
involves balancing the work-employee relation by providing monetary and
non-monetary benefits to employees.

Training & Development

Training is also an organized procedure for increasing the knowledge and
skills of people for a specific purpose. It helps the trainees acquire new
skills, technical knowledge, and problem-solving ability etc. It also gives an
awareness of the rules and procedures to guide their behaviour thereby
improving the performance of employee on present job and prepares them
for taking up new assignments in future.

Training can be given on the job as well as off the job. The company’s
practices decide which training type is implemented in the organization.

Performance Appraisal
Performance appraisal is a method of evaluating the behaviour of
employees in the work spot including both quantitative and qualitative
aspects of job performance. A process in which employee’s strengths and
weaknesses are identified to improve the performance on the present and
future jobs. Performance appraisal is a systematic review of individual or a
group’s performance on the job.

There are various methods for the performance appraisal which can be
adopted like 360 degree appraisal, interview based appraisal etc. moreover
the frequency of the appraisal also depends upon the practice followed by
the company.

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 The Road Ahead

After understanding the various HR practices which can be followed to

execute the various functions of HR; the next step would be to collect the
data with regards to which of the various practices are actually followed by
the companies of the Telecom sector.

To collect the primary data; a questionnaire is prepared; which includes

questions with regards to practices followed.

The designed questionnaire is attached in the Annexure.

The further step would be to analyze the practices followed by the

companies & come up with the best practices which can be suggested to
ensure smooth and proper functioning of the HR functions.

ANNEXTURE

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 Questionnaire

Recruitment and Selection & Induction

1. Which recruitment sources do you use and how do you evaluate it?
 Direct applicants
 Placement Consultants
 Job portals
 Employee referral
 Through temporary staffing
 Head hunting
 Body shopping
 Any other sources, please specify (Apart from all the above, do you
adopt any kind of innovation method in your requirement policy)

1. Does your company have induction process?

 YES
 NO
If Yes, for how long?

_____________________________________________________________________________
_

Compensation, performance appraisal, Retention

1. What is the current compensation system in company :

 Compensation inclusive
 Leave encashment
 Deputations
 Transportation allowance

1. Is the system reviewed periodically?

 YES
 NO

1. What are the types of rewards usually given to the employees?

 Monetary
 Non-monetary
 Both
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  No defined rewards

1. The performance appraisal method followed in the Organization :

 Balanced Scorecard method

 MBO
 Any other methods please
specify_________________________________________.

1. From the following options considered, the employee gets recognition

and reward for:
 Employee’s Performance
 Team performance
 Customer Satisfaction
 Innovation & creativity
 Length of service
 Milestones
 Contribution towards society
 Any other, specify_________________________________________________.

1. What are the strategies used by your organization to minimize attrition,

while attracting new talents at the same time?

_____________________________________________________________________________
_____________________________________________________________________________
___________________________________________________________________________
.
Training & development, Career Planning

2. How do you analyze your training needs at different level?

3. How do you measure training Effectiveness?

 Observing the post training performance of employees

 Reaction/ Feedback of the trainees
 Determining ROI
 Any other method, please
specify____________________________________________.
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1. Generally, what are the different methods adopted by your organization
to train the employees?

 Web-Based
 On-the-job training
 Off-the-job training
 Both web–based and class room.
 Any other, please
specify__________________________________________________.

1. What are the different measures adopted by your organization to

encourage the employees in their career growth?
_____________________________________________________________________________
_____________________________________________________________________________
_.

2. Does your organization provide any kind of program aimed at employee’s

satisfaction and work life balance?
 YES
 NO
If yes please
specify_______________________________________________________.

1. Is there any criterion for job rotation?

 YES
 NO
If yes what is the time span required for it?

_____________________________________________________________________________
.

Administrative Policies

1. What is your workplace management strategy?

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 __________________________________________________________________________
__________________________________________________________________________
____________________________________________________________.

2. State the contingencies that you cover under the personal and accidental
insurance policies?
__________________________________________________________________________
__________________________________________________________________________
_.

3. In your opinion what benefits are of greatest value to the employees as

well as the organization?
__________________________________________________________________________
__________________________________________________________________________
_______.

4. Do you have any grievance handling mechanism?

 YES
 NO
If any
specify____________________________________________________________.

1. How transparent are your employee benefit schemes?

_____________________________________________________________________________
_____________________________________________________________________________
_.

2. Please comment on the Human Face of your organization (Corporate

social responsibility)?

_____________________________________________________________________________
____________________________________________________________________________

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 Bibliography

Books referred:

1. Human Resource Management in Organization by Izabela Robinson,

2. Human Resource Management by Aswathappa,
3. Work Force Crisis by Dychtwald Erickson Morison,
4. Handbook of Strategic HRM by Michel Armstrong & Angela Baron.

Sites which we are referring are:

1. www.citehr.com,
2. www.fundoodata.com
3. www.wikipedia.co

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