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Submitted by Rajesh S.Rajandekar Specialization : Human Resources Master’s Level Post-Graduate Diploma In Business Administration Admission No : LPGD/JA11/0392 Submitted to Welingkar Institute of Management Development and Research, Mumbai Section : PGDBA (DLP) Case Paper Presentation To Study the psychology of contract workers & improve the performance/productivity by applying various HR tools.

Rallis India Limited: A case study - Rajesh S. Rajandekar

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Ever since its introduction to the Indian Market by the Britishers 200 years back, Rallis India Limited has acquired a strong foothold in India agrochemical sector with its collaboration with Tata Enterprise. In this presentation, we will study about the psychology of contract workers and ways in which to improve the productivity of the employees by applying various HR tools, in the context of Rallis India Limited.

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Page 1: Rallis India Limited: A case study - Rajesh S. Rajandekar

Submitted by Rajesh S.RajandekarSpecialization : Human ResourcesMaster’s Level Post-Graduate Diploma In Business AdministrationAdmission No : LPGD/JA11/0392Submitted toWelingkar Institute of Management Development and Research, MumbaiSection : PGDBA (DLP)

Case Paper Presentation

To Study the psychology of contract workers & improve the performance/productivity by applying various HR tools.

Page 2: Rallis India Limited: A case study - Rajesh S. Rajandekar

Agriculture : Crop Care solutions for farmers

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11*

-50

0

50

100

150

200

-109

2634

4555

65

116

160

184

Rallis : Serving the Nation for 160 years

Rs Crs

PBT

Page 3: Rallis India Limited: A case study - Rajesh S. Rajandekar

About Rallis India Limited…..

Rallis has been in existence in INDIA since 1851,when Pandias Stephen Rallies , head of a well know merchant firm , “RALLI BROTHERS” , came from Britain and set up trading in cotton,jute and other agricultural products.In the year 1948,FISON of UK and TATAS became the chief shareholders of Rallis India, launching the company into the crop protection business.In the current context , Rallis’ Domestic and crop protection businesses have been identified as its focused business areas.Rallis is a publicly held listed company and is a tata enterprise.During 09-10, holdings from group were consolidated with TATA chemicals and now Rallis is a subsidiary of Tata chemicals Ltd.,Which holds 50.06% of the paid-up equity share capital of Rallis.The total Tata holding in the company is 50.17%. Rallis is 150 yr old company.It has manufacturing units at 5 locations i.e. Navi Mumbai, Lote, Ankaleshwar and Akola. It has ties with international such as FMC,SYGENTA,DUPOINT etc. That has led to introduction of internationally proven products into the Indian marketplace at regular intervals.

Page 4: Rallis India Limited: A case study - Rajesh S. Rajandekar

Vision Mission ValuesVision Mission Values

Strategic VisionStrategic Vision

Rallis Strategy Scorecard

Rallis Strategy Scorecard

Strategy Deployment Matrices

Strategy Deployment Matrices

Project Planning SheetsProject Planning Sheets

Individual Goals Individual Goals

COMMUNICATE

L-1 processes8 nos.

L-2 processes32 nos.

L-3 processes248 nos.

EPM Framework

Key to success- Goal alignment

Page 5: Rallis India Limited: A case study - Rajesh S. Rajandekar

TURNOVER – AKOLA Unit ( Fig. in Cror.) ( Up to Jan-12)

5

FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-120

50

100

150

200

250

300

134.87

182.66

220.16

239.6

155.77

Series1

Page 6: Rallis India Limited: A case study - Rajesh S. Rajandekar

Problem StatementRallis India Limited, Akola unit is largest agrochemicals formulation unit having semi-automatic production lines to pack around 75 different production in around 8 SKU’s for all products.

Since the work involved unskilled activities & the product is seasonal the manpower mostly includes contractual workers from nearby villages on demand basis. The unit is having only 40 management staff including 22 supervisory staff to look after the whole production & maintenance activities. The unit is engaging average 280 contract workers daily to run the production lines who has been supervised by 18 supervisors & 4 shift incharges. The manpower ratio is 1:20 (1 supervisor : 20 contract workers)

Since the unit is almost 17 years old & mostly dependent on contract workers, it started facing problems like influence by external agencies for selecting the contracts, contract workers, increased political influence, monotony of work, workers started disobeying the supervisors instructions, violent behavior of some workers, districtive mind etc.

The Unit started facing following problems, losses & threats;

1. Decrease in manpower productivity. 2. Increased manpower cost. 3.Increased fixed cost. 4. Increased break-downs. 4. Increased first-aid cases. 5. Increase in theft cases. 6. Violent behavior by some contract workers. 7. Threat to become contract workmen union. 8. Increase in quality complaints. 9. Frequent stoppages of machinery. 10. Threatening to supervisors. 11. Slow-down the production activity. 12. Down turn of employee moral. 12. Unsafe behavior by contract workers. 13. Threat of EHS issue.

Page 7: Rallis India Limited: A case study - Rajesh S. Rajandekar

To evaluate present level of workmen moral.

#1

To leverage the TATA Brand toEmotionally attachThe workmen.

#2

Various scholarshipPF, ESIC benefits

#3

Involvement of families in various competitions

#4

Accomplishment of establish Training & Education.

#5

Objectives

Page 8: Rallis India Limited: A case study - Rajesh S. Rajandekar

Historical Approach to Controls

(Reactive Approach)

Strengthen Internal Controls

Prepare the action plan & implement it !

“Apply the HR tools viz. Maslow Hierarchy of Needs,

SWOT etc.”

Assessment of behavioral traits of workmen by satisfaction survey

Identify the gaps, Flurry of preparation, high priority,

high action

Start

Next 3 Months

New Audit Approaching

Start Again

Next 2 Years

Page 9: Rallis India Limited: A case study - Rajesh S. Rajandekar

9

Good

Plac

e

Respo

nsib

ilitie

s

clear

inst

ruct

ions

Trai

ning

safe

ty tr

aini

ng/e

quip

Mater

ials &

Too

ls

Health

Che

ck-u

p

Enco

urag

emen

t

Sugg

estio

ns

Team

wor

k

Wag

es &

Ben

efit

Facilit

ies

My qu

erie

s

Perfo

rman

ce E

valu

atio

n

Grieva

nces

Best F

riend

Surv

ey A

ctio

ns

Care

by su

perv

isor

4.30

4.40

4.50

4.60

4.70

4.80

4.90

5.00

5.10

Contract Workforce Satisfaction Survey

Axis

Tit

le

5 Years before Rallis

Page 10: Rallis India Limited: A case study - Rajesh S. Rajandekar

ObservableBehavior

The Behavioral IcebergU

n c

ontr

olla

ble

Casual / Abnormal behavior

Black listed background

Politically Influenced

Distractive mind / temptationDominant Values

Page 11: Rallis India Limited: A case study - Rajesh S. Rajandekar

SWOT analysis

STRENTH:- No Union.TATA BrandFollowing all statutory norms.

WEAKNESS:- Semi Automatic Production lines.More dependency on contract workers.Fluctuating market demand.

OPPORTUNITIES:-Being TATA Brand, easy to create goodwill.

Can build-up workmen moral for emotionally attached.

THREATS:-Outside political influence.Damage to company property due to violent behaviour by the workmen.Future union activities.

Helpful HarmfulIn

tern

al

Exte

rnal

Page 12: Rallis India Limited: A case study - Rajesh S. Rajandekar

Maslow Hierarchy of Needs

Physiological Needs

Security & Social Needs

Self EsteemNeeds

Hyg

iene

Fac

tors M

otivational

Factors

Page 13: Rallis India Limited: A case study - Rajesh S. Rajandekar

Maslow Hierarchy of Needs

Wages, Canteen, work environment

Identification of family needs

Rewards &Recognition

Hyg

iene

Fac

tors M

otivational

Factors

Page 14: Rallis India Limited: A case study - Rajesh S. Rajandekar

14

Physiological Needs

1. Strict compliances to wage factor. Transparency & communication to workers.2. Focus on good quality of refreshment & Tea/Milk provided in canteen free of cost.3. Cold & Purifier water.

1. Focus on providing good work environment.

2. Proper tools & tackles for performing the job.

3. Good quality & proper PPE’s4. Proper sitting arrangement in

canteen.

1. Separate safety training calander for contract workers.

2. On job safety & technical training.3. Awareness about product & packaging.4. Training on importance of PPE’s

1. Job security by providing job cards.2. Focus on ESIC & other insurance

benefits.3. Support in resolving in P.F. / ESIC

queries.4. Awareness on their accumulations.

Page 15: Rallis India Limited: A case study - Rajesh S. Rajandekar

15

Social Needs

1.Involvement in Safety Committee & Canteen Committee.2. Suggestion scheme for contract workers.3. Responsibility to some key contract workers.

1. Rewards & Recognition for contract workers.

2. Reward for suggestion.3. Rewards for Safety.4. Rewards for achieving target of

production.

1. Self authorization to some contract workers.

2. Involvement in cross functional teams.3. Promoting creativity.4. Promoting safety.

1. Performance measurement system for contract workers.

2. Red club, Yellow club & Green club for contract workers.

3. Contract workers satisfaction survey.

Page 16: Rallis India Limited: A case study - Rajesh S. Rajandekar

16

Emotional Needs

1.Meeting with Head-Manufacturing or Head-HR on their visit to location.2. Recognition on factory day.3. On job recognition (publically)

1. Health check-up camp for family members.

2. SSC lecture series for students of contract workers.

3. Help in getting various scholarship for kids.

1. Computer education programme for children of contract workers.

2. Self Help Group for families of contract workers.

1. Involvement of family members in Safety week Celebrations.

2. Involvement of family members in environment week celebrations.

3. Poster, essay, drawing competition for children of contract workers.

Page 17: Rallis India Limited: A case study - Rajesh S. Rajandekar

Engagement Satisfaction0102030405060708090100 92.9

88.291.7 93.8

In house survey for Contract Workforce

Implementation of suggestions

Higher responsibilities

Grievance redressal

Meeting with employees giving suggestions and giving feedback on implemented suggestions.

The same is being discussed with contract supervisors and higher responsibilities shall be given wherever possible.

Complaint registers are kept at security gate and canteen. Feedback shall be given to the concerned.

Focus areas Action plan

2010-11

2011-12

Page 18: Rallis India Limited: A case study - Rajesh S. Rajandekar

The Benefits……

Workmen Participation in various activities, High Moral

Employee moral boost-up, Healthy work environment.

Reduction in break-down, Reduction in first aid cases, No

accidents.

Increased per employee productivity; reduced workers

cost.

Performance based production

Start

Contribution to bottom line.

Page 19: Rallis India Limited: A case study - Rajesh S. Rajandekar

19

Crop Protec-

tion

Seeds & PGN

Contract Manu-factur-

ing

Agri Services

Crop

Protection

Others

Rallis : The Future

Page 20: Rallis India Limited: A case study - Rajesh S. Rajandekar