Chapter – 5

Human Resource Department / Personal Department

HINDALCO INDUSTRIES LIMITED

5.1 Recruitment & Selection Process

Recruitment and selection are core areas of human resource management but are
frequently discussed in a prescriptive manner. They are not simply techniques for filling
jobs - they are also levers for organizational change, sustaining employee commitment
and achieving high performance.

Recruitment Process

 NOTICE OF RECRUITMENT

The department concerned will get the requisition in the prescribed for approved by the
General Manager /Works Manager. The requisition after approval should be forwarded to
the personnel department. The requisition should clearly indicate the type of vacancy, i.e.
permanent or temporary, proposed grade, no of vacancies to be filled up and the proposed
date of recruitment. In addition other particulars like education and professional
qualification, experience, etc. should be indicated wherever possible.

Approved requisition for permanent personnel should reach the personnel department at
least 8 weeks in advance of the date of filling the vacancy. In case the vacancy is to be
advertised, the time required for recruitment is 10 weeks.(For temporary vacancies, 2
weeks’ notice would be necessary).

Department should give 24 hours notice for supply of unskilled casual labour.

 ACTION BY HR DEPARTMENT

On receipt of approved requisition, the HR Department will:

 Notify the vacancy to the Employment Exchange, if required.

 Refer to ACTIVE FILE (kept with HR dept.)
 Notify the vacancy on the company’s notice boards, if required.
 Advertise in newspapers, if necessary.

 SCREENING OF APPLICATIONS

Applications received will be jointly screened by the HR Department and the concerned
Department, for further action by the HR Department.

Selection Process

 SELECTION BOARD

Except for unskilled workmen, a selection board will make all recruitment.

The selection board will consist of minimum three persons in the rank of General
Foreman and above with a representative of one each from HR, concerned dept. and one
from an unconcerned dept.

For selection of other staff, the board will short list a few deserving candidates, after
preliminary interview and the Personnel Department will put them up for final interview
by the General Manager / Works Manager for final selection.
The Personnel department may arrange for trade tests and written examination, if deemed
necessary.

 Pre-requisite to appointment
 Person below the age of 18 shall not be considered for employment in the
company.
 HR dept should verify the age of the candidate with reference to:
 Birth certificate, where name is mentioned or School leaving certificate or
Insurance policy taken before employment commences, where age has
been admitted.
 Personnel department will arrange for the medical examination of selected
persons. Such person’s should be declared fit by the company’s medical
officer before being appointed.
 They will verify with previous employer to find out his antecedents-
attitude, conduct, and performance if necessary.
 HR Dept will verify with police (where necessary) to obtain general
information about the candidate and his social conduct.

 APPOINTMENT
 A candidate will be considered suitable for appointment only after the
above pre-requisite conditions are fulfilled.
 Appointment letters to the wage and salary roll employees will be issued
by Manager HR.
 In case of employees joining the confidential roll, GM’s / Works
Manager’s department will issue an employment order the day the recruit
joins duty.
 New recruits will be appointed as probationers and trainees.
 When a candidate is offered a higher start than the starting of the grade,
the wages/salary will be fixed by the Department Heads in consultation
 with Personnel Department and approval of General Manager / Works
Manager must be obtained.
 Grade/designation will be determined by the prevailing long-term
settlement wherein applicable.

5.2 Number of Employees

There are more than 40,000 people’s working as an employee at Hindalco Industries Ltd.

5.3 Training Methodology / Approach

Selection of methodology has been done very carefully keeping the sensitivity and
objectives of the programs in mind. Fine blend of theoretical & practical approach is used
to make programs more learning oriented.

TRAINING

1. ON-THE-JOB TRAINING

A) Job Rotation
B) Apprenticeship

2. OFF-THE-JOB TRAINING

A) Lecture & Case Studies

B) Conference & Seminar
1. ON THE JOB TRAINING :

A) Job Rotation

Job rotation is an organization strategy that has been advocacy to prevent the
development of work-related musculoskeletal injuries after engineering controls have
failed to reduce musculoskeletal stress. Included in the recommendation of the use of job
rotation is usually the qualification that the jobs must be dissimilar. The goal is to "dilute"
the exposure of the worker to injurious movements.

It is a movement between different jobs. This avoids employee becoming bored with job
and help them in learning new skills. It has number of positive impacts as well as
negative impacts on employees as well as organisation. Multi skilled employee may be
good in one organisation but may not be at all suitable with precision/ speciality based
organisation.

B) Apprenticeship

Apprenticeship is a system of training a new generation of practitioners of a skill. Most of

the training is done on the job while working for an employer who helps the apprentices
learn their trade, in exchange for their continuing labor for an agreed period after they
become skilled. Theoretical education may also be involved, informally via the
workplace and/or by attending vocational schools while still being paid by the employer.

During the programme it is not allowed to assign the apprentice to a regularly

employment and he is well protected from abrupt dismissal until the programme ends.
The defined content and skill set of the apprentice profession must be fully provided and
taught by the employer. The time taken is also regulated. Each profession takes a
different time, usually between 24 and 36 months.
2. OFF THE JOB TRAINING :

A) Lecture & Case Studies

Lectures present training material verbally and are used when the goal is to present a
great deal of material to many people. Lecturing is one-way communication and as such
may not be the most effective way to train. Also, it is hard to ensure from the trainer‘s
side that the entire trainees understand a topic on the same level. It is the most cost-
effective way of reaching large trainees. The main attraction of lecturing as a training
method is its deceptive simplicity and the control over the session it purportedly yields to
trainers. The simplicity of lecturing is deceptive, first and foremost, because what
lecturers say is not directly related to what listeners learn. This relation, as we have seen,
is anything but neat. The very qualities of a good lecture threaten its value as a training
method. The more complete and logically consistent the argument, the more erudite its
deviation, and more appealing its delivery, more it tends to be ―bought‖ as the final
answer. It is effective at that stage of the learning process which seeks to increase
intellectual understanding.

Case study is a description of a real or imagined situation which contains information

that trainees can use to analyze what has occurred and why. The trainees recommend
solutions based on the content provided. It can present a real-life situation which lets
trainees consider what they would do. It can present a wide variety of skills in which
applying knowledge is important. One purpose of case study is to multiply, well beyond
what they would meet in their day-to-day work, situations and problems participants can
be exposed to during training. Another is to present each sample of real life in slow
motion, so that through its detailed study trainees can learn the most from the data
offered. The communication should be clear. The third purpose of case method is to help
trainees to develop the habit of taking more factors into account than usually done, to
analyze them carefully, and to put them together in an integrated picture for guiding
understanding and action.
 B) Conference & Seminar

Conference is a group composed usually of 2 to 50 persons who represents different

organizations, departments, or points of view but who have some common interest or
background. They gather information and discuss mutual problem, with a reasonable
solution as the desired end. Problem identification and solution is often the basic
objective of conference.

Seminar is a group of person gathered together for the purpose of studying a subject
under the leadership of an expert or learned person. Often the procedure followed is to
identify the problem, explore the problem, discuss or lay out necessary research involved
in the solution of the problem, conduct the research, share the findings with others in the
group, and reach a conclusion on the basis of the research.

Workshop is a group of person with a common interest or problem, often professional or

vocational, who meet for an extended period of time to improve their individual
proficiency, ability, or understanding by means of study, research and discussion. The
workshop allows considerable flexibility, and the emphasis is on improving individual
proficiency and understanding. Theory and practices are often treated concurrently. The
learner is encouraged to work out a program of personal study and receives help with this
program from the other participants and resources people.

5.4 Employee Safety Mechanisms

We at Hindalco are committed to protecting human health and ensuring a safe working
environment for all our employees and contractual workers. The three-pronged approach
involving felt leadership for safety, embracing world-class processes and practices, and
right organisation for implementation has helped us embed the safety culture with an
objective of “Zero Harm”. This approach also helps us become a responsible corporate
citizen.

Our safety efforts also contribute in meeting the UN Sustainable Development Goal
(SDG) of Decent Work and Economic Growth. Our safety culture is guided by a robust
health and safety framework encompassing all activities across the organisation. A
definite H&S organisation structure helps in implementing the framework in true spirits.
The H&S management system is an integral part of the framework. We are proud that all
our operational facilities are certified with OHSAS 18001 and other applicable
international occupational health and safety management systems. To strengthen the
framework, we introduced unit-level safety boards during the reporting period, in
addition to the preexisting Apex Safety Board. A new safety committee, Contractor
Safety Management Committee, has also been introduced, bringing the total to six safety
sub-committees at the unit level. Complete details of the H&S framework are provided in
our sustainability report for FY 2018-19.

The robust framework, guided by our commitment to ensuring a reliable workplace,

equips us to deal with setbacks that we face. During April 2019, we faced a major
challenge in terms of bauxite residue spillage incident at our Muri facility in Jharkhand.
Immediate action was taken to minimise the impact by removing debris and isolating
spillage area using sandbags. We are glad to inform that there were no fatalities due to
the incident; however, we understand that it had the potential to cause damage. We
enlisted field experts and top-tier institutions to identify the root cause of the incident, so
we can take the necessary steps to avoid any such incident at any of our facilities in the
future.

In order to equip ourselves to deal with such incidents in future, a crisis management
programme was developed in association with the National Disaster Response Force
(NDRF). This comprehensive crisis management programme has been implemented at
each of our operational locations. As part of the crisis management programme, expert
agencies are working on all sites to avoid any fatal incidents.
5.5 Specific HR Policies

A philosophy of people management in based on the belief that human resources are
uniquely important to sustained business success. An organization gains competitive
advantage by using its people effectively, drawing on their expertise and ingenuity to
meet clearly defined objectives. A Human Resources (HR) department is a critical
component of employee well-being in any business, no matter how small. Human
Resources responsibilities include payroll, benefits, hiring, firing and keeping up to date
with state and central tax laws.

(a) To attract, retain and develop good employees and to get their total involvement in
achieving company goals.

(b) Provide opportunity for personal development and advancement to all with requisite
ability, ambition and integrity.

(c) Deal in good faith with all employees and employee representatives.

(d) Share information with all employees regarding health of the business and future
plans of the company.

(e) Encourage development of participative and supportive leadership.

(f) Encourage employees to accept responsibility and take calculated risk.

(g) To provide fair, equitable and competitive remuneration in return for a fair day’s
work.

(h) Be fair and firm in dealing with grievances and indiscipline.

(i) Set and achieve high standard of safety and occupational health.
5.6 Performance Appraisal Process

The performance management system process is completed in Hindalco by an

employee (employee self service) and by manager (manager self service).As the system
includes 3 processes. The first process is Goal Setting, mid year review and Annual
performance appraisal. There are nine sections in Performance document: Job Purpose,
KRA, Goals, Value, Overall Summary, Employee Comments, and Manager Comments,
Training need identification, Career Aspiration.

Annual goal setting : in the months of April/may every year, after the annual planning
and budgeting rounds, all teams will identify their KRAs and Goals for the forthcoming
financial year. This process will largely happen off-line. An employee will fill in his Goal
Setting Document in System, listing the KRAs, Goals, and Measurement Criteria and due
date for completion of specific goals. He will then notify the same to his manager. The
Manager recommends changes and approves the document. The approved document is
available to the employee and his manager for reference throughout the year.

Mid- Year Review : of goals set at the beginning of financial year will be held in the
months of October/ November every year. It will be initiated by manager. The main focus
of the mid year review is to check if the goals set at the beginning of the year are relevant
or if they need to be updated. It gives an opportunity to Manager and his team members
to identify and discuss about any performance issues, initiate corrective action for the
same.

Annual Performance Appraisal : against goals set and achieved will be held during the
months of April- May every year. The employee will complete his self appraisal against
goals set online in the System and submit the same to his manager for review. The
manager will discuss the performance of employee offline, give him feedback on his
performance and capture his own comments and performance ratings. The document is
send to the HR department for further processing.
5.7 Wages & Salary Administration

Details about Employees Salary by their job position at Hindalco Industries are as
follows :

Job Title Salary per Head (Estimated *)

Assistant Chief Financial Officer Rs. 3,00,000 / yearly
Assistant Manager Rs. 9,62,601 / yearly
Associate Manager Rs. 7,00,000 / yearly
Deputy Manager Rs. 9,50,000 / yearly
Export Manager Rs. 17,50,000 / yearly
Foreman Rs. 3,00,000 / yearly
Manager Rs. 6,00,000 / yearly
Safety Engineer Rs. 60,000 / monthly
Section Head Rs. 17,00,000 / yearly
Senior General Manager Rs. 20,00,000 / yearly
Shift Incharge Rs. 10,000 / monthly
Technician Rs. 3,00,000 / yearly
Operator Trainee Rs. 3,39,413 / yearly
Receptionist / Secretary Rs. 20,000 / monthly
Procurement Assistant Rs. 8,65,000 / yearly
5.8 Grievance Handling Procedure

If employees have any grievance about their job or any other thing then they can do
complain about the case.
Once established that the case needs investigation, the secretary of the Value
Standards Committee after discussion with the committee shall appoint a team to
investigate the case, with utmost confidentiality. The investigative team can be a pool of
internal people specially trained to investigate or can be an external agency specialized to
investigate such cases.
The investigation team should work towards ensuring that the investigation is completed
by following the laws of the land and principles of natural justice within 3 weeks of the
complaint being reported. If the investigation cannot be completed within 3 weeks, then
the committee needs to have very valid and strong reasons for the same.

5.9 Strategic HRM

HRM is literally about managing the people in an organisation as a resource. This

includes planning and forecasting organizational requirements in the future, the staffing
levels, types of staff and types of contracts, staff training and development, appraisal and
promotion, working conditions, incentive schemes, pensions and benefits.

Personnel Management to HRM is a major shift in the management field. Personnel

Management is now treated as a component of HRM while HRM looks at things from a
broader perspective treating staff as human capital.

This is connected to the division of HRM into Soft HRM and Hard HRM.

Hard HRM places emphasis on the resource part of the term and aims to increase
efficiency by control. It has its roots in the scientific management school. Soft HRM
places emphasis on the human element of the term and aims to increase efficiency
through employee commitment. It has its roots in the human relations school.

The role of a HR Manager has two levels, at the organizational level and at the
departmental level. At the organizational level HR manager is concerned mainly with
broader aspects of policy and procedures which affect the organisation as a whole or staff
generally. This includes activities such as human resource planning, induction and
training, recruitment policies, employee development etc.

At the departmental level HR mangers are more concerned with day to day personnel
matters such as organisation of work, allocating job roles, standards of worker
performance, safety, on the job training. In one aspect every line manager is a HR
Manager at the departmental level.

HRM is important due to few main reasons.

 People management is not only important for key business performance but also
for quality, technology, competitive strategy or research and development which
affects the bottom line.
 Superior HRM results in higher employee satisfaction which in turn has resulted
in improved financial performance.
 HR practices have explained nearly one fifth of the variation between companies
in productivity and profitability.
5.10 Employee Feedback Mechanism

We believe that our values act as a foundation of a reliable and responsible organisation.
They help us conduct business operations, whilst respecting the human rights and the
dignity of our people. We believe in providing equal opportunity employment and
propagating a work environment free of any forms of discrimination. Our employee
portfolio consists of two expats from the United States of America, apart from our Indian
employees.

We support our workers’ right to collective bargaining, and have observed worker unions
at all our operating locations. We have recognised about 65.87% of our total workforce
covered under the provision of collective bargaining. This helps us ensure transparency
with and trust of our entire workforce. We have developed longterm relationships with
unions and follow prevailing labour legislation at the national and state levels for all
settlements. Health and safety topics for operations at all respective locations are covered
in our agreements with the trade unions. No significant risk of violation of right to
collective bargaining was identified throughout our operations during the reporting
period.