Human Resource Management

Functions of HR and IR department in Arvind Mills

PGDM 10-12

Submitted By
PANKTI PARIKH
(P1027)
RIDHAM RAWAL
(P1038)
PARESH SAVALIYA
(P1040)
HARSHAL SHAH
(P1042)
PARTH SHUKLA
(P1047)
 Preface

In today’s competitive age, practical knowledge is more significant than theoretical

knowledge. Today practical training & knowledge play very important role in
management program. As Management students, we have got an opportunity to went in
the corporate and get insight about the HR function of the company.

We have prepared project report on function of HR department of Arvind mills ltd.

We have taken due care in framing this report but if there is any omission or error, I
request you to overlook upon this fact, as this is sincere attempt to perceive things in a
proper way.

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 Declaration

We student of NR IBM PGDM, here by declare that the project report on to “function of
HR department” for Arvind mills ltd., submitted to Prof. Dr. Kavita Kshatriya for the
partial requirement of the subject of Human resource Management of semester 2 in
PGDM course.

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 Acknowledgement

The project was a memorable experience as it allowed me to learn a lot of things in a

programmatic way practically in real corporate world. And it really matters as things are
completely different and complicated as compared to the theoretical concept.

If you know the laws of swimming it does not mean that you know swimming. It is only
through jumping in the water that you get to feel its depth. It is only through practical
knowledge that you are well acquired to face any eventuality.

So we are immensely grateful to Prof. Dr. Kavita Kshatriya – NR IBM Ahmadabad

& Dr. Hitesh Rupareliya - Director of NR IBM, who gave us the opportunity of doing this
project

We are very much thankful to Mr tushar trivedi who help us to approach HR head of the
Arvind mills.

We are extremely thankful to Mr.Jigar shashtri – IR head of Arvind mills ltd.

Ahmadabad, who show us the directions and lot of guidance to complete up our project
work. Also gave us all the information which is very much important for this project and
we are also thankful to Mr. D.B.shah – Manager IR for the same. We are also thanking
full that they both gave us their valuable time to help us in this project.

We are also thankful to all the employees of Arvind mills ltd. to co-operate with us in
bringing out a gigantic work of this kind.

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 Executive Summary

The topic of my research is employee consciousness towards Industrial Health & Safety
which is very important for any organization. The aspect ‘Health & Safety’ comes under
HR Department to maintain it in the plant. Safety in the simple terms, means free from
the occurrence or risk or injury or loss. Industrial Safety or Employee Safety refers to
the protection of workers from the danger of industrial accidents.

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 Index

Particulars Page no.

Introduction of Arvind mills 07
Organizational and Departmental structure 14
Recruitment and Selection 16
Wages and Salary Structure 19
Other Benefits to the Employees 21
Performance Appraisal 25
Time of the office 26
Leave structure 27
Training and Development 28
Welfare Activity and Safety 29
Summary 31
Annexure 33

Introduction of Arvind Mills

HISTORY

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 1930 was a year the world suffered a traumatic depression. Companies across the
globe began closing down. In UK and in India the textile industry in particular was in
trouble. At about this time, Mahatma Gandhi championed the Swadeshi Movement
and at his call, people from all India began boycotting fine and superfine fabrics,
which had so far been imported from England. In the midst of this depression one
family saw opportunity. The Lalbhai reasoned that the demand for fine and superfine
fabrics still existed. And any Indian company that met this demand would surely
prosper. The three brothers, Kasturbhai, Narottambhai and Chimanbhai decided to
put up a mill to produce this superfine fabric. Next they looked around for state-of-
the-art machinery that could produce such high quality fabric. Their search ended in
England. The best technology of that time was acquired at a most attractive price.
And a company called Arvind Limited was born.

 Arvind Limited started with a share capital of Rs 2,525,000 ($55,000) in the year
1931. With the aim of manufacturing the high-end superfine fabrics Arvind invested
in very sophisticated technology. With 52,560 ring spindles, 2552 doubling spindles
and 1122 looms it was one of the few companies in those days to start along with
spinning and weaving facilities in addition to full-fledged facilities for dyeing,
bleaching, finishing and mercerizing. The sales in the year 1934, three years after
establishment were Rs 45.76 lakh and profits were Rs 2.82 lakh. Steadily producing
high quality fabrics, year after year, Arvind took its place amongst the foremost
textile units in the country.

 In the mid 1980’s the textile industry faced another major crisis. With the power loom
churning out vast quantities of inexpensive fabric, many large composite mills lost
their markets, and were on the verge of closure. Yet that period saw Arvind at its
highest level of profitability. There could be no better time, concluded the
Management, for a rethink on strategy. The Arvind management coined a new word

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 for it new strategy – Renovision. It simply meant a new way of looking at issues, of
seeing more than the obvious and that became the corporate philosophy.

 The national focus paved way for international focus and Arvind’s markets shifted
from domestic to global, a market that expected and accepted only quality goods. An
in-depth analysis of the world textile market proved an eye opener. People the world
over were shifting from synthetic to natural fabrics. Cottons were the largest growing
segments. But where conventional wisdom pointed to popular priced segments,
Renovision pointed to high quality premium niches. Thus in 1987-88 Arvind entered
the export market for two sections -Denim for leisure & fashion wear and high quality
fabric for cotton shirting and trousers. By 1991 Arvind reached 1600 million meters
of Denim per year and it was the third largest producer of Denim in the world.

 In 1997 Arvind set up a state-of-the-art shirting, gabardine and knits facility, the
largest of its kind in India, at Santej. With Arvind’s concern for environment a most
modern effluent treatment facility with zero effluent discharge capability was also
established.

 Year 2005 was a watershed year for textiles. With the muliti-fiber agreement getting
phased out and the disbanding of quotas, international textile trade was poised for a
quantum leap. In the domestic market too, the rationalizing of the cenvat chain and
the growth of the organized retail industry was likely to make textiles and apparel
see an explosive growth.

 Arvind has carved out an aggressive strategy to verticalize its current operations by
setting up world-scale garmenting facilities and offering a one-stop shop service, by
offering garment packages to its international and domestic customers.

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 Of Lee, Wrangler, Arrow and Tommy Hilfiger and its own domestic brands of Flying
Machine, Newport, Excalibur and Ruf & Tuf, is setting its vision of becoming the
largest apparel brands company in India.

VALUE & VISION

We Believe

 In people and their unlimited potential

 In content and focus in problem solving

 In teams for effective performance in intellect & its power

We Endeavour

 To select, train and coach people to obtain higher responsibilities

 To nurture talent to build leaders for tomorrow's corporation to reward, celebrate and
activate all intellectual business contributions.

We Dream

 Of excellence in all endeavors

 Of mutual benefit and prosperity of making the world a better place to live in

 We Make Things Happen.

BOARD OF DIRECTORS

CHAIRMAN AND MANAGING DIRECTOR

 Mr. Sanjay S. Lalbhai

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DIRECTOR AND CHIEF FINANCIAL OFFICER
 Mr. Jayesh K. Shah
OTHER DIRECTORS
 Mr. Sudhir Mehta
 Dr. Bakul H. Dholakia
 Mr. Munesh Khanna
 Mr. G.M.Yadwadkar (Nominee of IDBI)
 Mr. R. W. Khanna (Nominee of Exim Bank)
 Ms. Renuka Ramnath

SHARE HOLDING PATTERN

Indian public
33%
Promoter group holding
37%

Private corporate bodies Mutual funds and UTI

9% 2%
GDR FII, NRIs/OCBs. F.b. Banks, insurance com.
0% 9% 10%

DIVISIONS

Lifestyle Fabrics
Denim

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Shirting
Khaki
Knits
Voiles

Lifestyle Apparel
Ready to Wear
Ready to Get Noticed
Jeans
Shirts
Knits

Brands
Own Brands
Excalibur
Flying Machine
Ruff & Tuff
New Port University

Licensed Brands
Gant, U.S.A. 1949
USPA
SansaBelt
Izod
Arrow
Cherokee

Joint Venture Brands

Tommy Hilfiger
Lee
Wrangler

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Wrangler Hero
Riders

Leader in Value Retail

Arvind had a mega vision that went on to becoming a revolution in value retailing. A
revolution called Mega Mart

AWARDS / RECOGNITION
 First company to bring International shirt brand “Arrow” to India
 First company to start dedicated “retail” outlets for Arrow brand
 Awarded various awards for Highest exports and ISO

ACHIEVEMENTS
1987 - The largest zero discharge green effluent treatment plant in India. -
Commitment to greener world 1987 - First company to bring International shirt brand
Arrow to India - First company to start dedicated retail outlets for Arrow brand. -
Awarded various awards for Highest exports and ISO 1989 - Largest denim & shirting
in South Asia. - 3rd Largest denim capacity in the world 1997 First Indian company to
verticalise the cotton textile business from cotton fields to apparel retailing. 1997-1998
First company to introduce ERP SAP business solutions 2008 Company launches
'Mega mart', now India's largest value apparel-retail chain 2008 Largest portfolio of
International brands: Lee, Wrangler, Nautica, Jansport, Kipling, Tommy, Arrow, US
Polo, Izod, Pierre Cardin, Palm Beach, Cherokee, hart Schaffner Marx
Arvind mills are largest denim manufactures they produce 1, 00,000 miter in a month.

CORPORATE OFFICE
Arvind Limited
Naroda Road
Ahmadabad – 380025
Gujarat 

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India
Tel: +91-79-30138000
Fax: +91-79-30138680

Organizational and Departmental Structure

MEANING
Organizational structure consists of activities such as task allocation, coordination and
supervision, which are directed towards the achievement of organizational aims. It can

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also be considered as the viewing glass or perspective through which individuals see
their organization and its environment.

 After meeting with the HR head of Arvind mill we got the information about the
organization structure.

 Arvind mill has two department in it the one is HR department and the other one is
IR department.

 And the main focus of our project is on IR

ORGANIZATION STUCTURE
 On top level there is a MD of Arvind mill and MD of Arvind mill is Sanjay lalbhai.

 Under MD there is CEO and CEO of Arvind mill is Aamir akhtar. And he has to
report and gave all the responsible answer to MD.

 Under CEO in Arvind mill there is a head operation who has to give the answer and
report to him.

 Under Head operation there 15department who are working and in that all the
managers like Human resources, finance, marketing, sales, ER (employee relation).

 ER is also called as an IR in Arvind mills and they operate all the workers who are
on the bottom level of hierarchy and they operate all the things of that employee
from pay sleeps to their benefits.

 This all department have to report to head operation but in Arvind mill its not
mandatory for all employees because they can also directly report to CEO.

 In all companies this type of operation is not available but in Arvind mill they gave
this type of facilities and they called it doted level or doted relations.

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 Than after under this fifteen department there is other three departments like
supervisor, junior manager, DDSP.

 And they all have to report to the head of different departments.

 Than under this there is bottom level of the employees like workers of the different
department.

 And all the issue related to the production or any issue in department they have to
discuss it with the supervisor.

 And the same is discuss it with higher level for any issue and problems and try to
solve it easily.

 In the organization as they said there is no too much supervisor because there is the
manager post at different level like senior and junior manager.

Recruitment and Selection

In recruitment and selection process there are many points that all the organization
include and follow the process of recruitment and selection.

RECRUITMENT

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Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organization so that the management can select
the right candidate for the right job from this pool. The main objective of the recruitment
process is to expedite the selection process.

Steps that followed by Arvind mill in recruitment process:

APPLICATION

 In that first they take the application from the candidate and take the resume of the
candidate and study all the requirements of the company that this candidate is
suitable for organization or not

 So the first step of recruitment process is application with photograph. Candidate

also posts his resume to the particular site that is arvinmill.com.

WRITTEN TEST (Aptitude test)

 After fulfilling first one they saw the second process of the interview and in that if
candidate is suitable for the organization they take aptitude test of the employee.

 And if candidate clear this test with a good grade than they go ahead for the
recruitment process of that candidate

PERSONAL INTERVIEW

 After clearing the aptitude test he is called for the personal interview and the
personal interview of the candidate is first taken by departmental head.

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 Like for ex: if the recruitment is going on in finance department than first interview is
taken by the head of the department and than it goes on and on.

REFERENCES

 Talking about the references they first see that any relative or friend is working in the
same organization or not and if not than they see the other references given by him.

 They also see the past experiences of the employee that if he is good enough in
past companies or not.

 They also see that he is not involved in any strikes and he behave with management
in a good manner.

 Than they look after that thing that candidate is leaving his job by his own wish.

FINAL INTERVIEW by HR

 After completion of all the process they call the candidate for final interview

 In the final interview company ask all the basic information and background of the
family also.

 They also cross check the some information which is mentioned in the resume like
salary, experience and all the information because some times some fake
information is also written by them.

 For example if some persons salary is 20000 Rs on the past job and he mentioned
that the salary were 25000 Rs and if management cross check for the same than
there is possibility that he put in some difficult situation

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 So this is the important steps that Arvind mill followed in recruitment process.

Wages and Salary Structure

 In the Arvind mill basic pay of the employees minimum amount is fixed and its fixed
by TLA (Textile labor association) and in all the unit or department some basic
minimum amount is fixed up to certain level.

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 If we take the example of U.S than in U.S basic 10-12$ per hour is fixed every
where.

 When we have a word with the HR head of the Arvind mill we got the information of
the workers basic pay

 And basic pay of the workers is 282.88 Rs and than after he gets all other incentives
like medical allowances, convey allowances, transport allowances etc.

 And if they hire the employees than at basic level on training period they pay them
2250 Rs till 6 month and if they like their performance than it also increase up to
4000 Rs.

 And if we talked about the bottom level of the employee their basic pay is 165 Rs
and some benefits as a incentive. And they also get 10 to 15 % extra as a service
charge so their salary become 165 + 10%(17 approx)=182 Rs

 This all the basic salary is Cost to the company.

 And talking about the manager level the salary is not fixed because it depends upon
the work they done and depends upon the skill of the person.

 And mainly how he performs the particular task in the organization all this things are
included in this.

 And its also depend upon the grading system of the employee.

 E1 to E3 is the basic grading system for employees and G1 to G7 is the managerial

position for the department wise manager.

WORKERS SALARY SLEEP

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 Column1 Column2 Column3 Column4 Column5
Deduction
Earnings s Total
Other
Workers (basic + Earnings) incentives
ESI =
476 +6779 = 7225 Rent 67 PF = 1049 156
Credit soc = CTD = -
High cost - 46.02 LTA 75 ---- -

Lump sum - 120 Tax = 80 sale adj=-

Incentive Pre/Pro
-890+296= 1186 Loan = ----

Award-99 - 75

Good work - 60
Total 8886 1285 7601.64

 Above table shows that the workers actual salary is more and than after deducting
all the things he get this amount in hand.

Other Benefits to the Employees

HEALTH AND SAFETY

 Ensure that all the equipments & system are design, install, operated & maintain in
conformity with safety, health and environment regulation.

 Impart continuous training to all employee to inculcate in them consciousness for

safety.

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 Carry out regular inspection of machinery & equipment in the production Unit.

 They also provide mask to the employee for going in production unit because there
is a huge work of cotton is their so its very helpful for them

 They are also provided ear plugs because the harsh voice which comes out of the
machines is harm full for ears of them.

 Talking about the other things they also gave shoes to the engineers and if needed
than they also gave clothes to the employee.

 Medical facility is also provided by them to the employees. Company is contract with
ICICI Lombard for insurance of each and every employee.

MEDICAL
 Medical allowances is also provided to the employees and it includes in the other
Incentives in salary

 In Arvind mill medical facility is provided to the family of the employees also

 But parent’s medical facility is not given to the employee.

LEAVE RULES
 Employee gets six paid holidays

 They get 10 sick leave

 And other leave benefits like PL and CL they get from the organization

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MOTIVATION
 In the Arvind mill they motivate employee by giving them awards.

 They motivate employee by also giving the award to their children

 They gave Rupees or momentous in the form of prizes and motivate them to study
more and more

 And if some employee is not capable for their Childs study than company help them
by providing loan or Rupees for further study.

 Every year they held workshop for the employee and also send for a business trip

GRADING SYSTEM
 Arvind mill gave the special grading system to the employee

 They gave grading system from T1 to T4

 In that T1 is for outstanding, T-2 is for good, T-3 is for satisfaction and T-4 is for ok
performance.

 This type of special grading facility is given by organization to employee.

RENT AND LOANS

 House is provided by organization to the employee without any cost means rent of
the house is provided by Arvind mill.

 They gave house loan to the employee without any interest.

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 And the loan is depending on the particular criteria.

AWARDS
 To motivate the employees Arvind mill gave the special awards to the employee and
this award is depend on the special performance of the employee.

 They gave best performance award to the employee for motivating the employee.

 They gave best attendance award to the employee so that other employee also
motivates to come at organization on daily bases.

CANTEEN

 Employees are given very neat and clean food coat

 In the canteen full lunch is provided in the very nominal prizing.

 For example a plat of pury and sabji are provided in Rs. 4 only.

 Big tables are provided for employees to sit in a group and have their own lunch also

ALLOWANCES

 Employees are given different allowances as follows

 Petrol allowances

 Telephone allowances

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 House rent

 Leave travel allowances

 Child education allowance

 Transport allowances

 This are some allowances which are normally given above this some job specific
allowances are also given for the betterment and motivation of that employee.

Performance Appraisal

 In all the divisions under Arvind mills, performance appraisal system is so strong and
transparent that they call it zero defect policy for performance appraisal.

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 They are doing this appraisal work though out the year. The immediate boss of
every employee is taking care of his or her performance appraisal.

 They are using goal setting method for performance appraisal. In this the employee
and his or her immediate boss will sit together and set goals and targets for whole
year. The company’s ultimate goal is considered as a main and in accordance to
that each employee and his or her boss decides their goals.

 After completion of one year all the results, completed or not completed tasks and
over all evaluation is done by the immediate boss. The employee will also give
grades to him self. That is calling self evaluation.

 Both the employee and the boss will decide together that what appraisal should be
given.

 Different grades are given to the employee like T – 1, T – 2, T – 3, T – 4. T – 1 is for

out standing, T – 2 is for good, T – 3 is for average, T – 4 is for bed performance.

 Promotion or transfers of employees are also decided this way.

 It seems that the appraisal system of the company is very transparent and accurate
also.

 Employee are also given awards for best performance and for best workman

Time of the office

 Employees are given swapping card with there photo identity for attendance and
timing purposes

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Timings for the office -
For workers For officers
1st shift - 7 am to 3:30 pm 9:30 am to 6 pm
2nd shift - 3:30 pm to 12 at night
3rd shift – 12 to 7 am

 Timing of the officers some time differs according to the work and emergency

Leave structure

Leaves for officers Leaves for workers

21 Privilege Leave 6 paid leaves
10 Casual Leave Medical leaves
10 Seek Leave

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 Other than this travel leaves are also given
 Maternity leaves are also given for 4 months

Training and Development

 In Arvind mills they believe in on going training process. They believe that training is
not only for fresher it is for all employees who are associated with the company.

 Pattern of the training differs according to the designation of the employee.

 Employees are divided into various categories like

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 E – 1, E – 2, M – 1, M – 2, M – 3, G – 1, G – 2 and so on in officers and in workers
different 80 categories are there

 E stands for executives

 M stands for managers
 G stands for general managers

 This employee are given training according to this categories

 Mainly three type of training are there one is on the job training, second is class
room training and other one is various work shops

 Work shops like time management, communication, leadership, fire fitting etc.

 Out door training is also given if needed

 For fresher they have certain rules like the fresher has to join as a trainee or as an
apprentice. Age limit is from 18 to 26 years. An education criterion is ssc. Apprentice
has to work whole year. For the first 6 months minimum Rs. 2500 is given. And for
other 6 months stipend is decided as per the performance of that employee.

Welfare Activity and Safety

 Company is using 5s process for welfare activity and safety

 The 5S Process, or simply "5S", is a structured program to systematically achieve

total organization, cleanliness, and standardization in the workplace. A well-
organized workplace results in a safer, more efficient, and more productive

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 operation.  It boosts the morale of the workers, promoting a sense of pride in their
work and ownership of their responsibilities.

 "5S" was invented in Japan, and stands for five (5) Japanese words that start with
the letter 'S'

Japanese Term English Meaning in organizational Context

Throw away all rubbish and unrelated
Seiri Tidiness
materials in the workplace
Set everything in proper place for quick
Seiton Orderliness
retrieval and storage
Clean the workplace; everyone should
Seiso Cleanliness
be a janitor
Standardize the way of maintaining
Seiketsu Standardization
cleanliness
Practice 'Five S' daily - make it a way of
Shitsuke Discipline
life; this also means 'commitment'

Safety
 The company is very much concern about the safety of the employees

 In campus of Arvind mills they celebrate national safety day at 4 th march

 They organize different competition related to safety like safety slogan competition

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 They also conduct blood donation camp frequently

 They also provide special food on special days like women’s day, Mother’s Day etc.

 They also celebrate birthdays, farewell party, and welcome party at offices among
the employee team. Team head will take care of all this activities.

 They also conduct blood donation camp for employees.

CSR
 Company also does CSR activity very frequently.

 They used to adopt areas near by their factory and they develop it. One of these
areas is Sanjay Nagar in Naroda.

 They also provide education loan to the poor kids without interest.

Summary

 First of all the whole experience of visiting the Arvind mills was very nice and
positive.

 We were given very good treatment their.

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 People over there, the whole staff are very help full.

 We found out that the HR and IR department of the company is very strong and
active.

 They are also planning to establish Strategic Human Recourse department in their
company very soon.

 They are also actively doing CSR work from the company.

 They are very much concern about the safety and security of their employees.

 They are giving all facilities to the employee.

 They are doing the entire thing as per the lows and ATMA. ATMA is the workers
association which is working for the betterment of the employee.

 The salary structure and other benefits are also considerably good and as per the
law.

 Canteen facility is very good. Neat and clean place for food and healthy food for the
employees are provided.

 They have over all 12000 employees under the umbrella of Arvind group. Different
firms and factories are there under Arvind group.

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 The company is very old but they are adopting new techniques and methods.

 They believe in modernization but the values of the company are very ethical and
very strong.

 They perceive workers as a part of family only.

Annexure

We are attaching safety oath witch employee of the company used to take on national
safety day that is 4th march.

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