TOPIC-A study on HR strategies of “Havelles India”

Name-Prachi Deepak Patil

Class-T.Y.BMS
Div-C (HR)
Roll No-8633
Subject-Strategic Human Resource Management And HR
Policies.
 Executive Summary
Havells India Ltd is a leading fast moving electrical goods company with presence across India.
Its product range includes Industrial & Domestic Circuit Protection Switchgear, Cables& Wires,
Motors, Fans, Power Capacitors, Luminaires for Domestic, Commercial & Industrial
applications, Modular Switches, Water Heaters and Domestic Appliances covering the entire
gamut of household, commercial and industrial electrical needs. Havells owns prestigious brands
like Havells, Crabtree and Standard. The company has 12 state-of-the-art manufacturing units in
India located at Haridwar, Baddi, Noida, Sahibabad, Faridabad, Alwar and Neemrana. The
company has 43 branch offices. Havells India Ltd was incorporated as Havells Pvt Ltd in August
1983 and converted into a public limited company in March 1992. The company started their
operations by producing miniature circuit-breakers and distribution boards in the year 1984.

Then, they entered into a technical collaboration with Christian Geyer, Germany, to manufacture
miniature circuit-breakers in India. In the year 1991-92, the company made additions to their
facilities to manufacture plastic distribution boards (PDBs) and earth-leakage circuit-breakers
(ELCBs). In order to manufacture ELCBs, the company entered into technical collaboration with
Schiele Industriwerke, Germany. In the year 1996, the company entered into the manufacture of
low tension power cables by acquiring an existing cable manufacturing plant in Alwar,
Rajasthan, which belongs to a sick unit from Rajasthan State Industrial Development &
Investment Corporation.In the year 2000, the company acquired Standard Electricals Ltd and
Duke Arnics Electronics Ltd. The company sold their entire shareholding of A J Shehfar & Co
Ltd in the year 2003. The company also sold their entire shareholding in Standard Electricals Ltd
during the year 2003-04. In the same year, the company moved in to electrical consumer goods
segment and set up a state-of-the-art automatic plant for manufacturing Compact Fluorescent
Lamps at Faridabad in Haryana.

The company pioneered the concept of exclusive brand showroom in the electrical industry with
‘Havells Galaxy’. Today over 500 plus Havells Galaxies across the country are helping
customers, both domestic and commercial, to choose from a wide variety of products for
different applications. Havells became the first FMEG Company to offer door step service via its
initiative ‘Havells Connect’.  Thanks to the quality of products and quicker service, it has
minimum customer complaints and highest customer satisfaction. 
 Introduction to Company
1. PROFILE

Starting off as an electrical trading company in 1958,

Havells India Ltd. today is an emerging leader and an end-
to-end solution provider in the Power Distribution Equipment industry. The company catering to
the needs of domestic and industrial market has seven manufacturing units in India.

Havells India Ltd, a billion-dollar-plus organization, and one of the largest & India's fastest
growing electrical and power distribution equipment company, manufacturing products ranging
from Building Circuit Protection, Industrial & Domestic Switchgear, Cables & Wires, Energy
Meters, Fans, CFL Lamps, Luminaries for Domestic, Commercial & Industrial application and
Modular Switches.

Havells owns some of the prestigious global brands like Crabtree*, Sylvania, Concord,
Luminance, Claude, Sylvania: Linolite, SLI Lighting & Zenith.

Havells reach stretches across 91 branch offices, over 2000 authorized dealers and thousands of
approved retail outlets. The company has an enviable clientele, not only in the domestic market,
but also in international markets like UK, Malaysia, Singapore, Bangladesh, Sri Lanka, Dubai,
Africa, Iran and Iraq. The company is currently exporting to over 50 countries globally.

Havells is acknowledged as a manufacturer & supplier of the widest range of quality low voltage
electrical equipment. With a number of strategic alliances in place, Havells is the only company
that has shown phenomenal growth rate with the help of various joint ventures, acquisitions,
mergers and takeovers.

Havells recently acquired Frankfurt headquartered, SLI Sylvania for $ 300 mn . The company is
a leading global designer and provider of lighting systems for lamps and fixtures. Sylvania is one
of the most globally recognized brand for over a century in the electrical industry with brands
like Sylvania, Concord: marlin, Lumiance, Marlin, Claude and Linolite-Sylvania..
Vision:"To be a globally recognized corporation that provides best electrical & lighting
solutions, delivered by best-in-class people."
 Mission:To achieve our vision through fairness, business ethics, global reach, technological
expertise, building long term relationships with all our associates, customers, partners, and
employees.
 Values: Customer Delight: A commitment to surpassing our customer expectations Leadership
by example. A commitment to set standards in our business and transactions based on mutual
trust. Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings.
Pursuit of Excellence : A commitment to strive relentlessly, to constantly improve ourselves, our
teams, our services and products so as to become the best in class
2) Promoters
QRG Group is one of the fastest growing Electrical and Power Distribution Equipment Company
in the country, manufacturing products ranging from building circuit protection, industrial &
domestic switchgear, cables & wires, energy meters, fans, CFLs, luminaries, bath fittings and
modular switches.
The group comprises of 5 companies –
1) Havells India Ltd. (the flagship company)
2) Standard Electricals
3) Crabtree India Ltd
4) TTL
5) Sylvania
With 13 state of the art manufacturing plants, 24 branch offices and a strong backing of over
3000 professionals across India the group has achieved rapid success in the past few years. The
group has recorded a turnover of Rs. 963 crores in the previous financial year and is poised for
another quantum growth with projections suggesting a 50% increase over previous year. While
the industry has been growing at a pace of 20% CAGR, QRG Enterprises has been marching
faster at a compounded annual growth rate of 35% in the past decade.

1.3) Board of Directors

1. Qimat Rai Gupta (Chairman and Managing Director)

2. Anil Gupta (Joint Managing Director)
3. Surjit Gupta (Director Operations)
4. Ameet Gupta (Director International Marketing)
5. Rajesh Gupta (Director Finance)
 CASE STUDY ON HR STRATEGIES (RECUIRTMENT)

RECRUITMENT

Before an organization can fill a job vacancy, it must find people who not only are qualified for
the position but also who want a job. Recruitment refers to organizational activities that
influence the number and type of applicants who apply for a job and whether the applicants
accept the jobs if offered. Thus recruitment is directly related to both human resource planning
and selection. Although it can be quite expensive, organizations have not always viewed
recruitment as systematically as other HR functions such as selection. During the coming years,
however the importance of recruitment will increase for many organizations for at least two
reasons: A majority of companies think that they will face shortage of employees who possess
the necessary skills for the jobs. The downsizing and cost saving measures undertaken by many
companies in recent years have left recruitment budgets much smaller than before. Thus
recruiters will have to become acquainted with new and more cost-effective ways of attracting
qualified applicants.

METHODS OF RECRUITING: Methods of internal recruiting :- 1. Job opening 2.

Entry-level positions 3. Skill inventories 4. Job bidding . Methods of external recruiting :- 1.
School and college recruiting 2. Advertising 3. Employment agencies 4. Executive research
firms 5. The internet.

RECRUITMENT PATTERNS – INTERNAL AND EXTERNAL HAVELL’S

INDIA LIMITED
Follows both internal & external recruitment processes for managerial and non-managerial level.
Procedure of Recruitment The following are the sources of recruitment:  Employment exchange
 Direct recruitment (through advertisement, etc.)

 Internal promotion/selection

 Transfer on deputation from public sector undertakings HAVELL’S INDIA LIMITED –

The internal hiring is a common feature amongst the PSU’s. HAVELL’S INDIA LIMITED
indulges in internal hiring for the staff and the managerial level. In both cases promotion on basis
of performance is a common factor. In fact in the managerial level the merit is the only basis of
internal recruitment. In case of the non-managerial level it may be promotion or if the employee
has added some qualification to his skill set. 60 The internal hiring definitely is dependent upon
the next level vacancy. As the employee moves higher up the ladder up the ladder the
recruitment at the senior level becomes strictly merit based. Hence the promotions are tougher.
Also the success of succession planning is more relevant for the senior people. In HAVELL’S
INDIA LIMITED, Promotion involves a movement from a post in the higher grade alongwith
respective promotion channels specified for the purpose. Employees are eligible for
consideration for promotion within the same cadre/discipline on completion of the prescribed
eligibility period and attainment of satisfactory standards in conduct & performance. Promotions
are effected based on the following criteria:  Performance of reflected in appraisal/confidential
reports.  Qualification  Seniority  Discipline viz. clearance from vigilance and disciplinary
angle.

Various activities undertaken for conducting recruitment exercises:

Nomination of professional agency

 Preparation of scope of activities pertaining to written test to be performed by the Agency

 Constitution of Tender Committee for deciding nomination of Agency.

Release of Advertisements

 Preparation of draft advertisements

 Handling over the advertisement material to the Agency.

RECRUITMENT POLICY

1. Recruitment only in light of organizational growth and expansion, attrition, replacements,

creation of new function (s). 2. Recruitment would be planned and carried out on the basis of the
manpower plan. 3. Each recruitment position should have clearly defined job specification and
job description. 4. Manpower planning has to be carried out for all functions and locations. 5.
There will be four sources for prospective candidates : HR Dept. Data base, web based career
Consultants, Placement Consultants, Classifieds. However, Consultants and Classifieds should
be used only if the HR Dept. data base and web based career consultants are unable to provide
suitable candidates. 6. When sourcing candidates from the consultants, constant feedback should
be maintained between the agency and the HR Department/Location Head/Departmental Head
on the status of candidates. 7. Interviewers identified for each position should be at least two
level/grade (wherever possible) above the incumbents position. 8. Use of classified should be
resorted to only when the requirements are very voluminous or skill level very specific

SELECTION PROCESS

The selection process aims to establish the ‘best fit’ between job requirements on the one hand
and the candidate qualifications on the other.

The following steps are followed in the process :-

1. Screening – the screening of bio-data is completed first by HR and then by the concerned
Functional Head. The short-listed candidates are then called for an interview.

2. Selection – The preliminary interview is conducted by HR. the final interview is conducted by
a panel consisting of the concerned Functional/Divisional Head and on the appraisal of the
probationer’s performance.

A confirmation letter is issued to the employee upon confirmation, a copy of which is

maintained in his personal file.
 FINDINGS

 It was observed that most of the employees are satisfied and some employees are not satisfied
with the recruitment and selection procedure adopted by the company.

 It was observed that most of the employees are satisfied with the job security and some
employees are not satisfied.

 It was observed that more than half employees are satisfied with Training Related to the job
and less employees are not satisfied.

 Many employees said that they are satisfied with the ways used to measure the performance
but few were dissatisfied.

 Most of the Employees are satisfied, some are average satisfied and very few are not satisfied
with the attitude of head of Department.

 Most of the Employees are satisfied, some are average satisfied and very few are not satisfied
with the approach of HOD in case of mistake

.  It was observed that very large no. of the employees are satisfied with the company and few
of the employees are not satisfied with the company.
SUGGESTIONS AND RECOMMENDATIONS

1) More local/ regional advertisements should be there to make people aware about
Havells and its products

2) There should be more advertisement on the world wide web also.

3) Campaigning should be done at all level.

4) Business Development Officers should contact Architects and Customers on regular

basis.

5) Counseling of employees should take place so the personal level of satisfaction of

employees from the recruitment and selection practices & procedures could have been
checked.

6) The biasness attached with the responses should be removed.

7) 7.The recruitment should also be done through online system and newspapers so that
more and more talented people can be hired.

CONCLUSIONS

With the liberalization bringing in new talent and increased competition, recruitment has taken
strategic dimensions. The overall aim of the recruitment & selection process should be to obtain
at minimum cost the number and quality of employees required to satisfy the human resource
needs of the company. It is evident from the study that organization ‘s which have responded to
the change in the environment by reviewing its functions have attained success. HAVELL’S
INDIA LIMITED draw their manpower extensively. These manpower plans have close linkages
with the corporate objectives and business plans. These are drawn after a detailed analysis
following a sanction. The budget and the sanctions heavily determine the recruitment pattern in
the PSU’s. Being a PSU also limits its strategies undertaken to market the image of the company.
Also it has to meet the quotas set for SC/ST by government. Campus recruitment is also used for
the recruitment and selection and HAVELL’S INDIA LIMITED visits only Premier Institutes. In
case of recruitment through advertisement the candidates are screened via written test, which is
outsourced to an agency. This agency only broadly communicates about the requirements. The
final interview is held by the organization. 91 Internal hiring is there for managerial level, which
may or may not involve the written test. The Top management is involved in the recruitment
process. The evaluation process involves the assessment of all factors from Education to
experience, mobility etc, the weight age differs depending upon the nature of the job.
HAVELL’S INDIA LIMITED also has taken lead to make its recruitment & Selection procedure
more efficient. It is in the process of making it on –line registration & also results of the
examination can been seen by candidates on internet.
 BIBILOGRAPHY

 Robins, D (2006): HUMAN RESOURCE MANAGEMENT. Prentice Hall, New York.

 John M Ivancevich: HUMAN RESOURCE MANAGEMENT, Irvin Chicago, London
 J.M.Rao, 2006, "Scouting for Talent " , Human Capital
 Wikipedia