INTERNSHIP REPORT

Shahi exports ltd.

Unit – 7
Bangalore
Date: 05-06-2019
Objectives:
 Understanding induction program
 Expectations and process of induction process
 Understanding recruitment of non-management staff recruitment to factories.
 Practical observation of recruitment process
Process
Mr. Aravind welcomed trainees for induction program and explained ground rules,
objectives process and expectations of the induction program. Pre-assessment test was
conducted earlier.
Mr. Sudheendra explained need, mechanism, and process of recruitment of non-
management staff in the organization.
Mr. Rakesh, Mrs. Shilpa, accompanied by Mr. Lakshman explained practical process
of recruitment, checkpoints, common errors and handling of errors in the process of
recruitments.
Learnings:
 Its trainee’s responsibility to make better use of induction (management
development program) and learn working mechanism in the organisation.
 Trainees are expected to report to Ms. Sheuli, mentor of the program during
09:30 to 18:00.
Recruitment process:
Manpower budgeting:
Manpower budgeting is the process of identifying the number of manpower
required in the organisation with sufficient skills for the smooth functioning of
the organisation. Business intelligence (BI) team study the factory and budget
the manpower with consultation of HR head and concerned user department.
Manpower budget plays skeletal role in the process of recruitment where,
identification of vacancies, skillset and pay range are scheduled in the manpower
budget. Only as per manpower budget, recruitment can be done. Man : machine
ratio (MMR) stands as 1:1.8 in urban factories and 1:1.6 in rural factories. In
cases of exemption in terms of additional manpower or additional pay in the
range, the plan would be evaluated by BI team and Chief operating
officer(COO).
In cases of vacancies, user department fill Talent requisition form (TRF) and
send to HR for acquiring talents.
Sourcing:
It is the process of identifying candidates for vacant positions in the organisation.
Sourcing of candidates will be done through below mentioned channels:
1. Data Bank: It consists of candidate contacts who are applied, worked
earlier with the organisation. In cases of need such candidates are
contacted and invited to the available job openings.
2. References: Internal and external references are the channels where the
new candidates are informed about vacancy in the organisation and
invited for employment. In cases of internal references, HR has to make a
note of referrer on application form.
3. Advertisements: Shahi exports ltd usually advertise for vacant positions
through TV channels, handbills, local news papers for the purpose of
publication of vacancies.
4. Rehiring: Even though it is not a source of recruitment, it is valid to
consider this topic here as it impacts on recruitment process. Once an
employee works in any of the factories of Shahi cannot leave the
organisation without resignation. Many of the times the workers due to
personal interests, abscond from duty and apply for any other factory of
Shahi. In such cases, candidate has to submit resignation in earlier
factory, and can apply for any other factory. Employee token numbers are
generated on the base of Aadhar, token number generation is not possible
in above mentioned cases unless candidate resigns.
5. Walk in: Company welcomes majority of employees with desired skillset
during first fifteen days of the month. After proper document verification,
such candidates are hired.
6. Outreach program: Shahi exports ltd. Attend many job fairs for attraction
of suitable talents for the organisation. Selected candidates are invited to
premises and after proper document verification process, such candidates
are hired.
7. Promotions: After proper job-related training and experience, internal
employees are promoted to higher vacant designations.
8. Outside sources: Governmental and non-governmental organisations who
train Onn th skills of stitching are visited and candidates from such
sources are hired.
 9. Institute/Campus: Shahi exports ltd runs some training centres and
candidates from such institute are absorbed in organisation.
Screening:
It is called HR level 1 process where the candidates who applied for employment
are verified with Aadhar and other educational qualification documents. At the
gate HR would verify Aadhar card of candidate with e-Aadhar portal. Checks for
date of birth in dd-mm-yoyo format, Aadhar number, Father’s/ husband’s name
clarity will be done.
Selection:
If there are any discrepancies in candidate’s identity proofs, candidate will be
rejected. If not, selected for further assessment.
Technical tests:
In cases of candidates with skills and experience are identified, such candidates
are sent to industrial engineering department (IED) for assessment. In other
cases, depending on candidate’s capacity to read and respond, HR would assign
the department to candidate and send to work.
IED assess skill level of new joined employee through different tests like
dexterity test, aptitude test etc and on the results, candidate designation will be
decided. If candidate has not any remarkable skillset, will be recruited helper or
trainee.
Induction:
Screened employees are deemed to employees of the organisation. Such
employees are sent to induction. During induction, vision, mission of the
organisation, employment conditions, leave policy, code of conduct, different
committees working for welfare, grievance redressal mechanisms are explained.
Gate entry/ Master creation:
Gate entry: Once it is felt that the candidate is employable, candidate data is
filled in ATS, photo of the candidate, sign on signature pad are taken. Enrolment
to PF, ESIC, gratuity is done. This process will end in first day of joining.
Issuance of appointment letter:
User department would review ATR for fixation on the basis of IED results and
pay range and suggest package. HR dept at level II approve the pay range and
designation. Accordingly, appointment letters will be issued to the employees
within five days of joining. For the designations of supervisor and above,
background verification will be done. For the employees above 40 years of age,
 blood pressure will be checked for any discrepancies before issuance of
appointment letter.
Evaluation:
The training protocol and plan was much interesting and exciting. The systematic
execution and assessment increased respect on company and management.
Date: 06-06-2019
Objectives:
 Introduction to organisation: Shahi exports ltd.
 Factory visit: visit to fabric storage area and shop floor
Process:
In the morning session Mr. Rohit explained about Shahi exports ltd. Initial set up and
growth of company, products, buyers, quality management etc.
After lunch during his second session explained corporate HR functions and corporate
departments.
After this session trainees visited fabric storage area accompanied by Mr. Ganesh and
Mr. Gururaj and observed activities in the store and shop floor.
Learnings:
Shahi exports ltd is world’s second largest, India’s largest garment exporter. It was
started on 1st July 1974 in Faridabad by Mrs. Sarla Ahuja. The company is having 62-
65 manufacturing units, more than 1 lakh employees and having more than 6000 crore
turnovers annually. The manufacturing sites are spread among Haryana, Delhi, Uttar
pradesh, Madhya praedesh, Andhra Pradesh, Orissa, Telangana, Tamilnadu and
Karnataka. Karnataka being largest base having maximum units and 75% employee
share.
Profile of products consists of Knits, woven, knits processing division (KPD) woven
processing division (WPD) and Sarla fabrics. Men’s T-shirts, high fashion ladies’
tops, Men’s and ladies’ bottoms, kids wear, knits and woven fabrics are the major
product line of the company. Company offers seasonal designs, identifying key
silhouettes, developing new patterns and prints, creating new embroidery concepts etc
services to its customers.
Shahi’s product cycle begins with inspiration from runway looks, market samples,
fashion magazines and moves to product creation by sourcing, creating patterns,
developing prints, developing embroideries and sample creation. Further created
samples are presented to buyers and orders are collected for manufacturing.
Seasonally Shahi exports serve up to 130 customers. Major buyers of Shahi exports
are Columbia, Walmart, Decathlon, Esprit, GAP etc.
Shahi exports works with six divisions for the administration namely knits processing
division (KPD), woven processing division (WPD), knits division with 16 factories,
men’s and bottom division (MNB) with 31 factories, ladies’ speciality division (LSD)
with 9 factories and men’s and denims (MND). WPD has the production capacity of
70 lacs square meter per annum. Shahi has 55000+ sewing machines, 125 knitting
machines and 56 washing machines of 1ton capacity. Shahi’s printing machine
production capacity is printing 12 lac pieces per annum.
Shahi exports compliances global recognised quality policies as follows.
 SA 800:2008 A social accountability policy which denies child labour, bonded
labour, any kinds of discrimination and forced labour.
 ISO 9001:2008 A quality management compliance
 GOTS: Global Organic Textile Standards
 OE: Organic Exchange
Shahi exports possess well experienced and exposed employees with speciality of
rapid ramp-up capacity. Company uses indigenous software for its majority of
activities. Shahi is recognised for its creative design and best practices. Shahi owes
cost leadership by vertically integration of garment production (from cotton to shirt)
and dominated economy scale. Also, the company has implemented LEAN
management system with efficient removal of waste.
Shahi exports focusses on women advancement, skill development, health and
wellbeing, environmental sustainability and rights awareness. Major empowerment
programs are personal advancement and career development (PACE), Her health, Her
finance, Women inn factories, Water sanitation and hygiene etc.
Corporate HR functions
Talent acquisition
Depending on manpower budget user department fills talent requisition form (TRF).
TRF contains job description (JD) and job roles (JR), required qualification, pay
range, notice period, designation level, work location, and justification for
requirement. => After the issuance of TRF, BI team review the TRF for availability of
budget. => Candidates are sourced from different channels as per requirement. =>
Sourced candidates are screened for required qualification. => Screened candidates
are called for interview. => Candidates who are selected in interview are verified with
medical check-up and background checks. => Selected candidates would get offer
letter on the basis of previous step results. => The candidates who accept the offer are
invited for induction at company premises and appointment letters are issued.
HR operations:
This team handles employee end to end life cycle management namely joining,
punching, bank accounts, exit etc.
Payroll:
The team dedicated for payroll handle attendance, leave and salary related functions.
Organisational development
The above team is responsible for conducting training sessions to staff at unit levels
and corporate level.
Compensation and benefits:
This corporate team takes care of insurance, maternity benefits etc.
Factory visit
Trainee visited the factory with Mr. Ganesh. First visited to fabric storage area. Mr.
Gururaj explained about process and activities taking place in store area.
On receipt of goods, goods receipt note (GRN) is issued against purchase order (PO).
Received garment is checked for any defects like shade, width, etc against PO. In
cases of any discrepancies, manufacturer will be contacted and as per severity of
defects issue will be addressed.
Inspection staff will be selected on the results of Munsell’s test results and trained for
six months. Store department includes employees of category helpers, checkers,
quality auditors and operators.
Safety measures in store area include nose masks, eye guards, helmet, rubber mat, fire
alarm, extinguisher etc.
Then visited shop floor. Met CAD operator having 10th qualification, and trained on
designing cutting of garment. Then observed training department where trainees are
trained to stich in different patterns. Then visited production line and packing line.
Packing room is maintained as per buyer’s requirement like air conditioned and CC
TV monitoring and metal detector installed.
Evaluation:
o Induction training was interesting, interactive.
o Factory visit brought wider knowledge and exposure to trainees.
Date: 07-06-2019
Payroll
Objectives:
 Learning payroll process in factory.
 Understanding payroll process in corporate level.
 Visit to factory
Process:
Mr. Bhaskar, Mr. Girish and Mr. Murugesh explained payroll process in the
organisation at unit level using presentation. In the second half of the day Mr. Ram
explained the process of payroll management at corporate level for management staff.
Visited OHC located in the plant and interacted and collected information.
Learnings:
Notes:
AMS Attendance management system
Unskilled works: Helper, housekeepers, trainees etc
Semi-skilled: Operators, tailors
Skilled: Quality checkers, supervisors
Highly skilled: floor in charge,
2 major steps:
1. Master creation
2. Attendance management
Master creation:
HR creator Gate entry: Aadhar verification => E Aadhar download =>AMS
entry (level1) =>Documents upload (Aadhar, PAN) Family details, address etc.
=>Salary fixation by user department=> Salary approval (Level2)
Employee file is master here
HR checker: verify the entry of creator and generate employee ID
Validator: The person from accounts verify the entries in all the fields and
authentication of Aadhar.
Attendance management:
Saviour: Biometric data collection software. It collects data of all punches of
attendance.
=>Scan and run communicator =>run communicator=>process data=>view
attendance
[ Regular: Attendance of employees within shift times, no OT can be seen]
[Standard: Actual attendance]
Buffer: Employees possess 120 minutes cushion for a month for which he can come
late or go early.
Attendance correction:
Manual punch: in cases of punch miss outs on letter of user department, attendance
register verification. It is displayed as SP
Working date change: In cases of Sunday working, attendance will be shifted to
compensatory off date just for the sake of payroll.
Punch transfer: In case of employee worked beyond 00:00 hrs from previous day, the
correction of date of exit to bring clarity in working hours.
Punch delete: In case if invalid punch like double punch, punch and abscond such
punch will be deleted.
Festival break entry: In cases of company allows early leaving of employees in
vocations, there wouldn’t be any deduction inn salary, and attendance will be
corrected.
Employee weekly off detail:
Staggered week off: In case of employee works on Sunday, compensatory of
on other days.
Employee shift rotation: Maintenance of shift expectation in master if employee
works in a regular shift for more than a month (shift schedule). Else correction in the
system.
Leave entry: EL, LWP, ESI, ML
Deductions: Transport, advance, loans
ESIC deductions: calculate and transfer to excel and upload to ESIC portal.
ECS (electronic clearance system) entry: For hostel employees, list will be crated and
sent to bank for deduction. It will not be shown in payslip.
Inactive employee list: list of employees who are absent from last 7 days without any
communication. Salary will not be credited to their account.
Attendance processing: We have to “run” to update corrections.
Associate process: automatically calculated after importing.
Attendance calendar: Any errors in entry of attendance of month will be displayed.
Transport entry: For those employees using company transport, list will be updated.
OT entry:
Planned OT: user department would provide OT list early
Unplanned OT: User department would provide list, punch out can also be
considered.
Loan: For those who have completed 1 year in Shahi, can apply and would get 1-
month salary as loan and would be recovered in 12 months.
Once the all above entries are done, the data will be submitted from AMS.
After submission, we should check for attendance detail. All data should be in sent. If
any discrepancy, proper action to be taken.
Mail to be sent to SPOC requesting to transfer data from AMS to “Now”.
SPOC would do the needful and revert back in a mail.
Attendance authorization: After receiving data inn “Now” we have to review and
authorize the attendance.
Payroll process: Period: 1st to 31st (entry and submit)
Audit summary report will be available in AMS. Check for ESI, PF deductions.
Payroll for management staff
All the attendances are collected from factories and respective work stations. The staff
are made aware on ESI, PF, PT, LWF and TDS deductions. TDS can be claimed by
producing documents on investments like rent, children school fee insurance etc.
Other financial transactions:
Validation of masters: It will be done by accounts department and update UAN.
Full and Final settlement: On submission of resignation, ID will be collected. On
complete of notice period, relieving letter will be issued.
Expense reimbursements: For minute transactions at unit level, unit accountant would
be holding petty cash, on submission of bills, such amount would be reimbursed.
Compliances: Company compliances guidelines of ESI, PF, Income tax, PT and LWF.
OHC visit
Factory has well established OHC with 1 doctor available full time, 2 female and 1
male nurses. There would be frequent visit of employees due to headache in number
50-60. Less accidents are reported in the factory. First aid kit audit will be done by
OHC.
Evaluation:
 Payroll processing is one of the responsible and technical roles handled by HR.
 The session gave basic understanding of process of payroll.
 The practical would be more effective for learning.
 Visit to OHC gave knowledge.
Date: 10-06-2019
Objectives:
 Learning roles and responsibilities of welfare officer
 Learning conflict management.
Process:
Mrs. Bhagyashree took session on roles and responsibilities of welfare. She explained
role of HR as welfare officer and roles of welfare officer as HR. After lunch Mr.
Kalyan explained about conflict management techniques.
Learnings: