PROJECT REPORT

ON
HR PRACTICES FOLLOWED BY
ITC
(Imperial Tobacco India Ltd.)

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION
(2008-11)

SUBMITTED TO :
MR.SANJAY NAUTIYAL
SRIVASTAVA

SUBMITTED BY
SONAL

FACULTY G.E.U
DEHRADUN

GRAPHIC ERA UNIVERSITY,

DEHRADUN

G.E.U,

DECLARATION
This project report on a study of HR practices in ITC in ITC
Saharanpur is submitted by me for the partial fulfillment of the
course of B.B.A from Graphic Era University.
This is an original work done by me expected the guidance
received which has been properly acknowledgement in the report.
This is not the copy of any other report or any part of it hasnt been
submitted for the award of any degree or diploma.

Sonal Srivastava
Graphic Era University

ACKNOWLEDGEMENT
A successful completion of job is based upon the chain of factors
combining together to make an integral outcome. The cooperation
of the factors mixed with sincere effort can lead to best
performance. My project is also no exception to this. Therefore I
take this opportunity to express deep sense of gratitude to all those
who have contributed significantly by sharing their knowledge and
experience in the completion of this project work.
I would like to thanks Mr. Rahul Karan Singh(Circle Head) who
gave me a free hand as far as going about the project work
concerned and Mr. Harish Bhatt(Area executive ) for his timely
response via e-mail & personal meeting, which immensely helped
in giving the project the initial direction it needed. I also express
my sincere thank to my internal guide Mr. Sanjay Nautiyal for his
constant support and guidance throughout the project.
I have made an honest and dedicated attempt to make the research
material as authentic as it could. And I earnestly hope that it
provides useful and workable information and knowledge to any
person reading it.

Submitted by
Sonal Srivastava

CERTIFICATE
This is to certify that the dissertation title EVALUATION OF
HR PRACTICES AT ITC submitted by SONAL SRIVASTAVA
during semester IIIrd of BBA(HR) program (Batch 2008-11)
embodies original work done by her.

Signature of faculty guide:

Name:
Destination:
Center:

PREFACE
I have made this report as an essential part of V semester course
curriculum of BBA. The title of project is A study of HR practices
in ITC at ITC Saharanpur.
In the course of my training I have had the golden opportunity
of seeing the practical application of what ever theoretical
knowledge was imparted to me in a class room studies. I have
had the good fortune in interacting with the executive and
employee of ITC Saharanpur who were very warm and cordial
in their conduct towards me.
My report mainly focuses on study of HR practices in ITC.
I hope that the finding of the project work must conform with
the companiys expectation & suggestion made on that basis must
be useful for the total performance of the employees of ITC
SAHARANPUR.

Table Of Contents
SUMMARY
1. Executive summary
2. Company Profile
3. History of ITC
4. Certification of ITC
5. ITC business portfolio
6. The HR Practices
7. Research Methodology
8. Data Analysis and Interpretation
9. Findings
10. Conclusions
11. Recommendation
12. Appendices

13. Refrences

EXECUTIVE SUMMARY
ITC constantly endeavors to benchmark its products, services and
processes to global standards. The Company's pursuit of excellence
has earned it national and international honors. ITC is one of the
eight Indian companies to figure in Forbes A-List for 2004,
featuring 400 of "the world's best big companies". Forbes has also
named ITC among Asia's'Fab 50' and the World's Most Reputable
Companies
ITC is the first Indian company and the second in the world to win
the prestigious Development Gateway Award. It won the $100,000
Award for the year 2005 for its trailblazing ITC e-Choupal
initiative which has achieved the scale of a movement in rural
India. The Development Gateway Award recognizes ITC's eChoupal as the most exemplary contribution in the field of
Information and Communication Technologies (ICT) for
development during the last 10 years. ITC e-Choupal won the
Award for the importance of its contribution to development
priorities like poverty reduction, its scale and replicability,
sustainability and transparency.
The project helped me to go through the various HR practices
prevalent at ITC like it helped me

 To know the recruitment & selection procedures adopted

in this company.
To improve training and development
the company.

programs used in

To know how the performance of the employees is being

appraised.
To provide better employee welfare.
To increase labour productivity.

Company profile
ITC Limited is an Indian conglomerate founded on 24 August
1910. The company (formerly known as Imperial Tobacco
Company of India Limited) is currently headed by Yogesh Chander
Deveshwar. The company has its registered office in Kolkata. It
employs over 20,000 people at more than 60 locations across India.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards
& Specialty Papers, Packaging, Agri-Business, Packaged Foods &
Confectionery, Information Technology, Branded Apparel,
Personal Care, Stationery, Safety Matches and other FMCG
products. While ITC is an outstanding market leader in its
traditional businesses of Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is rapidly gaining market share
even in its nascent businesses of Packaged Foods & Confectionery,
Branded Apparel, Personal Care and Stationery.
It ranks third in pre-tax profit among India's private sector
corporations. ITC is one of India's foremost private sector
companies with a market capitalization of over US $ 22 billion and
a turnover of US $ 6 billion.
ITC is rated among the World's Best Big Companies, Asia's 'Fab
50' and the World's Most Reputable Companies by Forbes
magazine, among India's Most Respected Companies by Business
World and among India's Most Valuable Companies by Business
Today. ITC ranks among India's `10 Most Valuable

(Company) Brands', in a study conducted by Brand Finance and

published by the Economic Times. ITC also ranks among Asia's 50
best performing companies compiled by Business Week.
ITC is one of India's most valuable and respected corporations.

Vision statement
Sustain ITC's position as one of India's most valuable corporations
through world class performance, creating growing value for the
Indian economy and the Companys stakeholders

The mission statement

To enhance the wealth generating capability of the enterprise in a
globalizing environment, delivering superior and sustainable
stakeholder value

Positioning statement
"Enduring Value. For the nation. For the Shareholder."

ITCs corporate strategies are:

Create multiple drivers of growth by developing a portfolio

of world class businesses that best matches organizational
capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels,

Paper, Paperboards & Packaging, Agri Business and Information
Technology.

Benchmark the health of each business comprehensively

across the criteria of Market Standing, Profitability and Internal
Vitality.

Ensure that each of its businesses is world class and

internationally competitive.

Enhance the competitive power of the portfolio through

synergies derived by blending the diverse skills and capabilities
residing in ITCs various businesses.

Create distributed leadership within the organization by

nurturing talented and focused top management teams for each of
the businesses.

Continuously strengthen and refine Corporate Governance

processes and systems to catalyze the
entrepreneurial energies of management by striking the golden
balance between executive freedom and the need for effective
control and accountability.

HISTORY OF ITC
ITC was incorporated on August 24, 1910 under the name of
'Imperial Tobacco Company of India Limited'. A leased office on
Radha Bazar Lane, Kolkata, was the centre of the Company's
existence. The Company celebrated its 16th birthday on August 24,
1926, by purchasing the plot of land situated at 37, Chowringhee,
(now renamed J.L. Nehru Road) Kolkata, for the sum of Rs
310,000. The Company's ownership progressively Indianised, and
the name of the Company was changed to I.T.C. Limited in 1974.
In recognition of the Company's multi-business portfolio
encompassing a wide range of businesses - Cigarettes & Tobacco,
Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and
Greeting Gifting & Stationery - the full stops in the Company's
name were removed effective September 18, 2001.
ITC's Packaging & Printing Business was set up in 1925 as a
strategic backward integration for ITC's Cigarettes business. It is
today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the
acquisition of a hotel in Chennai which was rechristened 'ITCWelcomgroup Hotel Chola'. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 70 owned and
managed properties spread across India.
In 1979, ITC entered the Paperboards business by promoting ITC
Bhadrachalam Paperboards Limited, which today has become the
market leader in India.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal

and British joint venture. In August 2002, Surya Tobacco
became a subsidiary of ITC Limited and its name was changed to
Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper
manufacturing company and a major supplier of tissue paper to the
cigarette industry. Tribeni Tissues Division was merged with the
Bhadrachalam Paperboards Division to form the Paperboards &
Specialty Papers Division in November 2002.
In 1990, leveraging its agri-sourcing competency ITC set up the
Agri Business Division for export of agri-commodities. ITC's
unique and now widely acknowledged e-Choupal initiative began
in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9
states covering over 4 million farmers. ITC's first rural mall,
christened 'Choupal Sagaar' was inaugurated in August 2004 at
Sehore. On the rural retail front, 24 'Choupal Saagars' are now
operatonal in the 3 states of Madhya Pradesh, Maharashtra and
Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under
the brand name 'Expressions'. In 2002, the product range was
enlarged with the introduction of Gift wrappers, Autograph books
and Slam books. In the same year, ITC also launched 'Expressions
Matrubhasha', a vernacular range of greeting cards in eight
languages and 'Expressions Paperkraft', a range of premium
stationery products. In 2003, the company rolled out 'Classmate', a
range of notebooks in the school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills
Sport range of international quality relaxed wear for men and
women in 2000. The Wills Lifestyle chain of exclusive stores later
expanded its range to include Wills Classic formal wear
(2002) and Wills Clublife evening wear (2003). ITC also initiated a
foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of

the country's most premier fashion event - Wills Lifestyle India

Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion
Design industry. In 2007, the Company introduced 'Miss Players'a fashion brand in the popular segment for the young woman.
In 2000, ITC spun off its information technology business into a
wholly owned subsidiary, ITC Infotech India Limited, to more
aggressively pursue emerging opportunities in this area.
ITC's foray into the Foods business is an outstanding example of
successfully blending multiple internal competencies to create a
new driver of business growth. It began in August 2001 with the
introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes.
In 2002, ITC entered the confectionery and staples segments with
the launch of the brands mint-o and Candyman confectionery and
Aashirvaad atta (wheat flour). 2003 witnessed the introduction of
Sunfeast as the Company entered the biscuits segment. ITC's
entered the fast growing branded snacks category with Bingo! in
2007.
In 2002, ITC's philosophy of contributing to enhancing the
competitiveness of the entire value chain found yet another
expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep, Aim, Aim
Mega and Aim Metro.
ITC forayed into the marketing of agarbattis (incense sticks) in
2003 marked the manifestation of its partnership with the

cottage sector. ITC's popular agarbattis brands include Spriha and

Mangaldeep across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine
fragrances and bath & body care products for men and women in
July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for
men (Inizio Homme) and women (Inizio Femme). Continuing with
its tradition of bringing world class products to Indian consumers
the Company launched 'Fiama Di Wills', a premium range of
Shampoos, Shower Gels and Soaps in September, October and
December 2007 respectively. The Company also launched the
'Superia' range of Soaps and Shampoos in the mass-market
segment at select markets in October 2007 and Vivel De Wills &
Vivel range of soaps in February and Vivel range of shampoos in
June 2008.

Certification of ITC

ITC constantly endeavors to benchmark its products,

services and processes to global standards. The
Company's pursuit of excellence has earned it
national and international honors. ITC is one of the
eight Indian companies to figure in Forbes A-List for
2004, featuring 400 of "the world's best big
companies". Forbes has also named ITC among
Asia's'Fab 50' and the World's Most Reputable
Companies
ITC is the first Indian company and the second in the
world to win the prestigious Development Gateway
Award. It won the $100,000 Award for the year 2005
for its trailblazing ITC e-Choupal initiative which has
achieved the scale of a movement in rural India. The
Development Gateway Award recognizes ITC's eChoupal as the most exemplary contribution in the
field of Information and Communication Technologies
(ICT) for development during the last 10 years. ITC eChoupal won the Award for the importance of

its contribution to development priorities like poverty

reduction, its scale and replicability, sustainability
and transparency.
ITC has won the inaugural 'World Business Award',
the worldwide business award recognizing companies
who have made significant efforts to create
sustainable livelihood opportunities and enduring
wealth in developing countries. The award has been
instituted jointly by the United Nations Development
Programme
(UNDP),
International
Chamber
of
Commerce (ICC) and the HRH Prince of Wales
International Business Leaders Forum (IBLF).
ITC is the first Corporate to receive the Annual FICCI
Outstanding Vision Corporate Triple Impact Award in
2007 for its invaluable contribution to the triple
bottom line benchmarks of building economic, social
and natural capital for the nation.
ITC has won the Golden Peacock Awards for
'Corporate Social Responsibility (Asia)' in 2007, the
Award for CSR in Emerging Economies 2005 and
Excellence in Corporate Governance' in the same
year. These Awards have been instituted by the
Institute of Directors, New Delhi, in association with
the World Council for Corporate Governance and
Centre for Corporate Governance
ITC's cigarette factory in Kolkata is the first such unit
in India to get ISO 9000 quality certification and the
first among cigarette factories in the world to be
awarded the ISO 14001 certification
ITC Maurya in New Delhi is the first hotel in India to
get the coveted ISO 14001 Environment Management
Systems certification.

ITC Filtrona is the first cigarette filter company in

the world to obtain ISO 14001
ITC Infotech finds pride of place among a select
group of SEI CMM Level 5 companies in the world.
ITC's Green Leaf Threshing plant in Chirala is the
first in India and among the first 10 units in the world
to
bag
the
Social
Accountability
(SA
8000)
certification
ITC Chairman Y C Deveshwar has received several
honors over the years. Notable among them are:
Year Award
2007 SAM/SPG
Sustainability
Leadership
Award conferred at the International
Sustainability Leadership Symposium,
Zurich.
2006 Business Person of the Year from UK
Trade & Investment, the UK Government
organisation that supports overseas
businesses in that country.
2006 Inducted into the `Hall of Pride' by the
93rd Indian Science Congress
Honoured with the Teacher's Lifetime
2005 Achievement Award
Manager Entrepreneur of the Year from
2001 Ernst & Young Retail Visionary of the
Year from Images, India's only fashion
and retail trade magazine
Honorary Fellowship from the All India
1998 Management Association
Distinguished Alumni Award from IIT,
1996 Delhi
Marketing Man of the Year from A&M,
1994 the leading marketing magazine
1986 Meridien Hotelier of the Year

ITC has won the 'Enterprise Business Transformation

Award' for Asia Pacific (Apac), instituted by Infosys
Technologies and Wharton School of the University of
Pennsylvania for its celebrated e-Choupal initiative.
ITC is the only Indian FMCG Company to have
featured in the Forbes 2000 list. The Forbes 2000 is a
comprehensive ranking of the world's biggest
companies, measured by a composite of sales, profits,
assets and market value. The list spans 51 countries
and 27 industries.
ITC continues its dominance of The Economic Times'
Brand Equity listing of India's 100 Biggest FMCG
Brands, with three brands from its stable making it to
the top five. Gold Flake remains India's biggest FMCG
brand in terms of sales. Navy Cut ranks at No. 4. ITC's
Scissors brand ranks at No 5 and is the only new
entrant into the top 10.
Restaurant magazine has chosen Bukhara at the ITC
Maurya, New Delhi as the best Indian restaurant in
the world and the best restaurant in Asia. Bukhara
has also been adjudged one of the top 50 restaurants
in the world by the London based magazine 'The Good
Food Guide'. Bukhara is the only South Asian
restaurant to figure in the list.
ITC's Lifestyle Retailing Business Division (LRBD) has
won the "Best Supply Chain Practices Award" for
time-effective
and
cost-efficient
Logistics
Management in Organized Retail. The awards were
organized by Retailers Association of India (rai) in
association with ITW Signode - the International
leaders in packaging solutions.

ITC's EHS Policy

ITCs mission is to sustain and enhance the wealthgenerating capacity of its portfolio of businesses in a
progressively globalising environment. As one of
Indias premier corporations employing a vast
quantum of societal resources, ITC seeks to fulfil a
larger role by enlarging its contribution to the society
of which it is a part. The trusteeship role related to
social and environmental resources, aligned to the
pursuit of economic objectives, is the cornerstone of
ITCs Environment, Health and Safety philosophy.
ITCs EHS philosophy cognises for the twin needs of
conservation and creation of productive resources.
In the multi-business context of ITC, Corporate
Strategies are designed to create enduring value for
the nation and the shareholder, through leadership in

each business and the attainment of world-class

competitive capabilities across the value chain. The
objective of leadership extends to all facets of
business operations including Environment, Health
and Safety.
ITC is, therefore, committed to conducting its
operations with due regard for the environment, and
providing a safe and healthy workplace for each
employee. Various international and national awards
and accreditations stand testimony to ITCs
commitment to EHS. Such external recognition
further reinforces the need to direct the collective
endeavour of the Companys employees at all levels
towards sustaining and continuously improving
standards of Environment, Health and Safety in a bid
to attain and exceed benchmarked standards,
whether regulatory or otherwise.
In particular, it is ITCs EHS policy

To contribute to sustainable development

through the establishment and implementation
of environment standards that are scientifically
tested and meet the requirement of relevant
laws, regulations and codes of practice.
To take account of environment, occupational
health and safety in planning and decisionmaking.
To provide appropriate training and disseminate
information to enable all employees to accept
individual responsibility for Environment, Health
and Safety, implement best practices, and work

in partnership to create a culture of continuous

improvement.

To instil a sense of duty in every employee

towards personal safety, as well as that of others
who may be affected by the employees actions.

To provide and maintain facilities, equipment,

operations and working conditions which are
safe for employees, visitors and contractors at
the Companys premises.

To ensure safe handling, storage, use and

disposal of all substances and materials that are
classified as hazardous to health and
environment.

To reduce waste, conserve energy, and promote

recycling of materials wherever possible.

To institute and implement a system of regular

EHS audit in order to assure compliance with laid
down policy, benchmarked standards, and
requirements of laws, regulations and applicable
codes of practice.

To proactively share information with business

partners towards inculcating world-class EHS
standards across the value chain of which ITC is
a part.

All employees of ITC are expected to adhere to and

comply with the EHS Policy and Corporate Standards
on EHS.

ITCs EHS Policy extends to all sites of the Company.

It will be the overall responsibility of the
Divisional/SBU Chief Executives, through the
members of their Divisional Management
Committees, General Managers and Unit Heads, to
ensure implementation of this Policy and Corporate
Standards on EHS, including formation of various
committees and designating individuals for specific
responsibilities in respect of their Division/SBU.
The Corporate EHS Department is responsible for
reviewing and updating Corporate Standards on EHS,
and for providing guidance and support to all
concern.

ITC -FMCG

ITC -FMCG
Cigarettes
ITC is the market leader in cigarettes in India. Its
highly popular portfolio of brands includes Insignia,
India Kings, Classic, Gold Flake, Silk Cut, Navy Cut,
Scissors, Capstan, Berkeley, Bristol and Flake.
ITC's cigarettes are produced in its state-of-the-art
factories at Bangalore, Munger, Saharanpur and
Kolkata. These factories are known for their high
levels of quality, contemporary technology and work
environment.
ITC's has presence in overseas markets as well. In
the extremely competitive US market, ITC offers
high-quality, value-priced cigarettes and Roll-yourown solutions. In West Asia, ITC has become a key
player in the GCC markets through growing volumes
of its brands.

Foods
ITC made its entry into the branded & packaged
Foods business in August 2001 with the launch of the
Kitchens of India brand. A more broad-based entry
has been made since June 2002 with brand launches
in the Confectionery, Staples and Snack Foods
segments.

The Foods business strives to deliver quality food

products to the consumer. All products of ITC's Foods
business available in the market today have been
crafted based on consumer insights developed
through extensive market research. ITC's
state-of-the-art Product Development facility is
located at Bangalore.
The Foods business is represented in 4 categories in
the market. These are:

Ready To Eat Foods

Staples
Confectionery
Snack Foods

ITCs six brand of food include:

Kitchens of India
Aashirvaad
Sun feast
mint-o
Candyman
Bingo!

Lifestyle retailing
ITCs ventured into Lifestyle Retailing Business
Division through its Wills Lifestyle chain of exclusive
specialty stores.
Wills Lifestyle, the fashion destination, offers a
tempting choice of Wills Classic work wear, Wills
Sport relaxed wear, Wills Club life evening wear,

fashion accessories and Essenza Di Wills an

exclusive range of fine fragrances and bath & body
care products and Fiama Di Wills - a range of
premium shampoos and shower gels. Wills Lifestyle
has also introduced Wills Signature designer wear,
designed by the leading designers of the country.
With a distinctive presence across segments at the
premium end, ITC has also established John Players
as a brand that offers a complete fashion wardrobe
to the male youth of today.
Education & Stationary
ITC made its entry into the stationery business in the
year 2002 with its premium range of notebooks. ITC's
Education and Stationery Products are marketed
under the brands "Classmate" and "Paperkraft".
The Classmate range of products is targeted at
satisfying education & stationery needs of students &
young adults. The product range includes Notebooks,
Math Instruments, Scholastic Products as well as
Writing Instruments.

The Paperkraft range of products aims at satisfying

the stationery needs & office consumables need of
office executives & working professional. The
continuously expanding product range under
Paperkraft includes Premium Business Paper, Paper
Stationery, Markers & Highlighters.
Safety Matches

ITCs range of Safety matches include popular brands

like i Kno, Mangaldeep, Aim, Aim Mega and Aim
Metro. With differentiated product features and
innovative value additions, these brands effectively
address the needs of different consumer segments.
The Aim brand is the largest selling brand of Safety
Matches in India.
ITC also exports regular and premium safety matches
brands to markets such as Middle East, Africa and
the USA. ITC aims to enhance the competitiveness of
the small and medium scale sectors through its
complementary R&D based product development
and marketing strengths, especially the breadth and
depth of the Company's trade marketing and
distribution.
Aggarbattis
ITC commenced marketing Agarbattis (Incense
Sticks) sourced from small-scale and cottage units in
2003. Mangaldeep Agarbattis are available in a wide
range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood, Madhur, Durbar, Tarangini, Anushri,
Ananth and Mogra.Durbar Gold is a new offering from
Mangaldeep launched in Andhra Pradesh and has
received wide consumer acceptance. The premium
range from ITC, Mangaldeep has two offerings,
Pratiti and Sarvatra and is specially hand rolled by
Cottage Industries, Sri Aurobindo Ashram,
Pondicherry.

Personal care
ITC forayed into the Personal Care business in July
2005. In the short period since its entry, ITC has
already launched an array of brands, each of which
offers a unique and superior value proposition to
discerning consumers. Anchored on extensive
consumer research and product development, ITC's
personal care portfolio brings world-class products
with clearly differentiated benefits to quality-seeking
consumers.
ITC's Personal Care portfolio under the 'Essenza Di
Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro',
'Vivel' and 'Superia' brands has received encouraging
consumer response and is being progressively
extended nationally.
ITC's state-of-the-art manufacturing facility meets stringent
requirements of hygiene and benchmarked manufacturing
practices. Contemporary technology and the latest
manufacturing processes have combined to produce
distinctly superior products which rank high on quality and
consumer appeal.

Hotels: ITC entered into hotels field in 1975. He is giving best

hospitality services in some field. ITC have 46 hotels
across 42 destination all over India.

C. Packaging: -

ITC also producing packaging items likeI.Flip top boxes.

II.

Car board outers.

III.

Shells and slides.

IV.

Soft cup and strap labels

V.

Bundle wraps

VI.

Flap boxes

VII. Inner frames

VIII. Coupon inserts & Variety
IX.
D.

Folding crotons

Paper Board & Specialty paper: -

ITC has now integrates sits paperboard & specialty paper

business into its newly created (PSPD), to how new strategic
& operational synergies.
The division also produced quality(a). Printing & Writing papers
(b). Eco- friendly papers
(c). Photo copier papers.
E. Information Technology (IT): - ITC has recently
spun off its 20 year old information system division into a
wholly owned subsidiary to aggressively pursue growth
opportunities in this sector
F.

Life style retelling: - ITC also manufacturing ready

made garments range of international quality of relaxed

wear under the brand name wills sport. It have 48 retail

out across 38 cites in the country. Recently he also
lunched another brand name john players offers
complete range of contemn porary mens wear- like shirts,
Trousers, t-shirts & denims. It also lunches in Nov.

MARKETING STRATEGY USED BY

ITC
ITC started an earnest exercise by creating a new
brand image and corporate philosophy by investing
in new business categories like personal care,
premium apparel, rural business (e- Choupal) and
foods. All along using its famed distribution strengths
built through its successful past businesses like
cigarettes, paperboards and packaging, hotels and
agri business, to create synergies across its verticals
and help prop up its new businesses, like personal
care and foods. ITC has a well thought-out strategic
approach. Rather than acquiring weaker brands to
get into these new segments inorganically, it created
a range of new personal care and branded apparel
brands.
The first step in this well-planned strategy was the
launch of Wills Lifestyle, the premium branded
apparel business in 2002.
ITC then moved on to take the competition head on
in the FMCG domain, through ITC Foods in August
2001, and personal care business, which is the focal
point of this story, in 2005. It has created good

impact with its well etched-out Personal Care

Brands. Under this category, brands like Essenza Di
Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the
Superia were designed to take care of various sets of
consumer segments.
But behind this launch was five years of intensive on
ground research of market conditions and consumer
expectations. Over one lakh consumers were
surveyed across the country to test various
prototypes. Acceptance benchmark was kept as high
as 90 percent for the final products. ITC called this
exercise as '3E approach explore, establish
and execute. As an adage goes 'if you have to
win a race, you have to clearly target the No 1',
ITC too aimed the No 1 which happened to be the
formidable HUL (which still reigns over 50 percent of
the FMCG market). And ITC's target was HUL and
P&G only. ITC roped in its tobacco business veteran
Sandeep Kaul to spearhead the personal care launch;
it also sought help from product formulation and
branding experts in Europe and America to formulate
the fragrance, aesthetics and packaging. Many of the
brands have also been developed at its R&D centre.
The results are there for everyone to see. In less than
four years, ITC has been able to create brand
awareness and consumer acceptance for its five
product lines Essenza Di Wills, Fiama Di Wills,
Vivel Di Wills, Vivel and the Superiaeach
targeted at the needs, aspirations and usage
behaviour of different consumer segments. Kaul
informs that the strategy for designing personal care
is that everyone is a potential consumer.
Distribution system at ITC

The process of passing down each passing the

product down the chain to the next organization
through Chain of intermediaries, before it finally
reaches the consumer or end-user is known as
the 'distribution chain' or the 'channel.'
A number of alternate 'channels' of distribution may
be available:

Distributor, who sells to retailers,

Dealer Or wholesaler, who sells to end
customers
Advertisement typically used for consumption
goods

ITC follows:
CHANNEL WISE DISTRIBUTION
Here the total product is divided into different
channels like, Health
care product, Personal care products, Home products
& etc.
BEAT WISE DISTRIBUTION
Here total market is divided into different areas
where the products are served to all the outlets
exist in that area.
ITC supply chain consists of diverse categories with
different priorities
More than 1000+ SKUs
Buying Value $68 MM

 Warehousing space of more than 3.5m SFT around

55+ locations
Products manufactured at 45+ plants
More than 650 trucks moved every day
Direct distribution from factories to Distributors.
Indirect movement through RDCs
Combination of Rail/Road/Sea movement within the
country depending on the product type.
(Target is Safer, Faster, cost effective)
ITC A RESPONSIBLE CITIZEN
ITC is a responsible corporate citizen: ITC is doing so many activities for the welfare of
society and darks as a responsible corporate leader
without any gap. Some of its major societal
activation for the welfare of different section of
society is as followsa. Environment, health & safety (EHS)
b. Reaching out to society
c. Preserving national heritage.
d. Supporting sustainable development
a.

Envoirment, health & Safety (EHS): - As a

responsible corporate citizen, ITC accords the

highest priority to environment, occupational health,

and safety. It is committed to protecting the
environment in which it operates. It is equally
committed to ensuring very high standard of safety
at the work place.
It is a relegations of ITC high EHS standards that
lit has been the recipient of several
National and international awards- such asISO 14000
Sword of honour
Royal society of prevention of accidents awards.
National safety awards.
The corporate Environment award.
The golden peacock environment management
award.
Excellence in pollution control management.
Prashanna patra award.
National Award for excellence in energy
conservation.

b.

Reaching out to society: - As a responsible

corporate citizen, ITC promotes art, culture and

education. Besides working for the protection and
enrichment of the environment and over all social
development.
Community development.
Education.
Protecting the environment.
c.

Preserving National Heritage: - As a socially

responsible corporate citizen, ITC

Endeavors to creates value for the Indian society
in multiple ways, one of them being
Preservation of India rich culture heritage ITC
has made significant contribution to the
Promotion of Indian classical music, theatre, are
and cuisine

GRADES FOR MANAGERS

Senior Managers. (Managers)
Middleman Managers.(Asst. Managers)
Junior Managers. (Executives)

GRADES FOR WORKERS

Unskilled Workers.
Semi Skilled Workers.
Skilled Workers.
Highly Skilled Workers.

PROJECT REPORT ON
HR PRACTICES AT ITC
LTD.

PROJECT REPORT SUBMITTED AT

GRAPHIC ERA UNIVERSITY
SUBMITTED BY
SONAL SRIVASTAVA

INTRODUCTION
My research report is entitled A study of HR Practices in
ITC. Firstly I would like to discuss about HR Practices.
What are HR Practices?
HR Practices are those practices which are been done by the
organization for having optimum utilization of human
resource of the organization. These practices can be
explained as follows:
Recruitment & Selection
Training & Development
Performance Appraisal System
Evaluation System
Feed Back Mechanism
Rewards to Employees
Work Remuneration of the employees
Increment practices

INTRODUCTION OF HRM
Human resource management is the planning ,
organizing, directing, and controlling of the procurement,
development, compensation, integration, maintenance and
separation of human resources to the end that individual,
organizational, and social objective are accomplished.
FEATURES OF HRM
Increased competition
Emphasis on quality in staff, goods/services
Flexibility in operations
Willingness to adopt to changing market needs
Global Market
OBJECTIVES OF HRM
Integration of HRM policy with business goals/objectives
Attainment of organizational objectives through human
capital
Creation of flexible work hours/function
Creation of a flexible environment to be responsive to
market ambience, as per the need of the dizzily fast
packed and changing environment.

 Integration of people related issues with business

issues, while bringing people related issues to the fore
and advocating primacy of business needs.

MEANING & DEFINITION

HRM is a management function that helps managers
recruit,

select,

train

and

develops

members

for

an

organization obviously HRM is concerned with peoples

dimension in organizations
HRM: - It is also a management function concerned with
hiring motivating and maintaining people in an organization.
It

is

series

of

integrated

decision

that

from

the

employment relationship; their quality contributes to the

ability of the organization and the employees to achieve
their objective. Human resource management is concerned
with the people dimension in management. since every
organization is make up of people, acquiring their services,
developing their skill, motivating them to higher level of
performance and ensuring that they continue to maintain
their commitment to the organization are essential to
achieving organizational objectives.

INTRODUCTION OF
RECRUITMENT

The human resources are the most important assets of

organization. The success or failure of an organization is
largely dependent on the caliber of the people working
therein. Without positive and creative contribution from

people, organization cant progress and prosper. In order to

achieve

the

goals

and

perform

the

activities

of

an

organization, therefore we need to recruit people with

requisite, skills, qualification and experience. While doing so
we have to keep the present as well as future requirements
of the organization in mind.
OBJECTIVE
To effectively manage the manpower recruitment in
coherence with long term and short term manpower
planning of the organization through a standard recruitment
and selection policy.
To proactively and systematically identify the recruitment
needs in time. To ensure that all the recruitment are within the
manpower budget and as per the laid down policy.
The recruited people with required level of skilled and
aptitude for learning and growth.
SCOPE:
This policy shall apply to all PERMANENT management
position in the company including the workmen.
IDENTIFICATION OF VACANT POSITIONS

1. Total permanent manpower strength/budget for

organization has been sanctioned by the board of
directors.
2. All the recruitment has necessarily to be made
within the approved budget/strength only.
3. Vacancies against the sanctioned budget may
arise due to:
Retirement
Turnover
Natural Separation
4.

whenever

vacancy

arise,

the

concerned

department has to fill up the prescribed manpower

requisition form clearly indication the job description
and specification, time frame and send it to HR
department.
HR PLANNING
HRP is the process of forecasting an organizations
future demand for and supply of, the right type of people in
the right number. It is only after this that the HRM department
can initiate the recruitment and selection process. HRP is the
sub-system

in

the

total

organizational

planning.

Organizational planning includes managerial activities that set

the companys objective. HRP facilitates the realization of the

companys objectives by providing the right type and right

number of personnel. HRP then is like materials planning that
estimate the type and quality of the materials and supplies
needed to facilitate the manufacturing activities of the
organization. HRP is variously called manpower planning,
personnel planning or employment planning.
RECRUITMENT SOURCES
The sources of recruitment may be broadly divided into
two categories: internal sources and external sources. On
receipt of the Manpower Requisition (MPR) form HR
department will initiate action of sourcing the candidates
as under:
1. INTERNAL SOURCES:
As a matter of policy, the organization will
encourage to fill up the vacancies from within
the existing people if they are fulfilling the
criteria and found suitable.
In order to invite application from internal
sources, notice/circular for all such vacancies
will be put up on the notice board.
In case any permanent employee dies in harness
due to accident or any other reason, one depend son of
deceased

employee

may

be

given

preference

in

employment with the company subject to his fulfilling

the eligibility criteria based on qualification and
experience as well as suitable vacancy in the
company at that time.
The conditions fulfilling the requirement may
apply against internal notification to HR
department through their department.
2. other sources :
Other sources can be tapped for recruitment only
when

suitable

candidates

are

mot

available

internally. Other sources may include the following:

internal data bank
local employment exchange
advertisement through newspaper
Placement agencies.
Methods Of Recruitment
The following are the most commonly used method of
recruiting people.
1. Internal Method
2. Direct Method
3. Indirect Method
INTERNAL METHOD:

PROMOTION AND TRANSFERS:

ITC Prefer to fill vacancies through promotion or transfers

from within wherever possible. Promotion involves movement
of an employee from a lower level position to higher level
position accompanied by changes in duties, responsibilities,
status and value and value.
It may lead to changes in duties and responsibility, working
conditions,

etc.,

but

not

necessarily

salary.

Internal

promotions and transfers certainly allow people greater

scope to experiment with their career, kindling ambitions
and motivating them to take a shot at something they might
otherwise never have considered. The system, of course,
works best for young executives who are willing to take risks.

JOB POSITION
Job position is another way of hiring people from
within. In this method, the organization publicizes job
openings on bulletin boards, electronic media and similar
outlets. Hindustan lever introduced its version open job
position in early 2002 and over 40 positions have since been
filed through the process. HLL even allows its employee to
under take career shifts, for example from technical position
system.

EMPLOYEE REFERRALS

Employee referral means using personal contacts to

locate job opportunities. It is a recommendation from a
current employee regarding a job applicant. The logic behind
employee referral is that it takes one to know one
employee working in the organization in this case, are
encouraged to recommend the name of their friends working
in other organization for a possible vacancy in the near future.
In fact, this has become a popular way of recruiting people in
the highly competitive information technology industry now a
day. Companies offer rich rewards also to employees whose
recommendation are accepted after the routine screening and
examining process is over- and job offers extended to the
suggested candidates.

Direct Method
Campus Recruitment
It is a method of recruiting by visiting and participating
in college campuses and their placement centers. Here the
recruiters visits reputed educational institutions such as IITs,
IIMs colleges and universities with a view to pickup job
aspirants having a requisite technical of professional skills. Job
seekers are provided information about the jobs and the
recruiters inturen get a snap shot of job seekers through
constant

interchange

of

information

with

respective

institutions. A preliminary screening is done within the

campus and the short listed students are then subjected to
the reminder of the selection process. In view of the growing
demand for young managers, most reputed organizations visit
regularly and even sponsor certain popular activities with a
view to earn goodwill in the job market. Advantage of this
method include: the placement centre helps locate applicants
and provides resumes to organization; applicants can be
prescreened; applicants will not have to be lured away from a
current job and lower salary expectation.

Indirect Method
Advertisement
This

includes

advertisement

in

news

papers;

trade,

professionals and technical journals; radio and TV etc.

In

recent time this medium became just as colorful lively and

imaginative as consumer advertising. The ad generally gives a
brief outline of the job responsibilities, compensation package,
prospects in the organization etc. This method is appropriate
when (a) the organization intends to reach a large target
group and (b) the organization wants a fairly good no. of
talented people who are geographically spread out.

Head Hunters
There is an influx of executive search agencies also known as
head hunters who specialize in selection of professionals for
very senior or top posts, where applicants are in short supply
and employers have no time to go round in search of the best
talents. Such vacancies are fewer and far between and
organizations prefer hiring a head hunter who maintains
confidentiality of the employer and are specialize in recruiting
the best talent strictly as per the job specification. But, these
specialists bodies charges hefty professional fees. However,
the high cost is outweighed by the benefit of recruiting the
best talent without going through the cumbersome and time
consuming process of internal recruitment system.

SELECTION PROCEDURE

1.

Screening of Application :
All application received from various sources
will

be

screened

by

the

concerned

department and HR based on the job

description

and

specification

and

the

applicant profile.
Shorting of prima facile suitable candidates
who should be called for test/interview shall
be prepared.
The ratio between the number of vacancy
and the number of candidate to be called for
test/interview should normally be 1:5.
2. TEST:
Depending on the requirement of the job if
required,

management

may

conduct

written/aptitude/psychometric/physical or any
other test as deem fit.
Short listed application will be send formal
letter for appearing test at least 15 days in
advance.
Qualifying

criteria

for

the

test

will

be

determined by the management depending

on the nature and requirement of the job.
3. INTERVIEW:
All the candidates short listed for interview
will be informed through a formal call letter

for attending interview at least 15 days in

advance.
The candidate will be interview

by the

interview panel.

4.

FINAL SELECTIOM AND APPOINTMENT:

Recommendation of the interview panel will be
put up before the MD by the HR Department for
his approval.
Candidates for the officer and above after
interviewed by the panel will be finally interview
by the MD.
Selection of candidates will be strictly on the
basis of merit. Other things being equal local
candidate from state of Bihar will be given
preference.
Appointment letter will be issued to the finally
selected candidates after duly approved by MD.
However, in case appointment letter can initially
be issued to the candidates and the detailed
formal appointment letter can be issued at the
time of joining.
Before

letter

candidates
following:

HR

of

appointment

department

will

is

issued
ensure

to
the

1. Check and verify all the personal details

furnished by the candidates.
2. Verify the certificates and other credentials.
3. Make

necessary

reference/antecedents

verifications whenever required.

5. Joining Formalities:
(a)

Employees joining shall first report

in the HR department will facilitate
in completing the joining formalities
such as filling of joining report and
other necessary forms.

(b)

HR department will ensure that the

candidates will be allowed to join
subject
medically.

to

their

being

found

RESEARCH METHODOLOGY

RESEARCH FORMULATION
The research to be conducted can be formulated as:-

A detail study of the HR PRACTICES followed by ITC

RESEARCH OBJECTIVES

1. To study the HR PRACTICES in ITC.

2. To
know
the
recruitment
&
selection
procedures adopted in this company.
3. To
improve
training
and
programs used in the company.

development

4. To know how the performance

employees is being appraised.
5. To provide

better employee

of

the

welfare.

6. To increase labour productivity.

RESEARCH DESIGN
Descriptive Research has been used in order to conduct the
study.

DATA COLLECTION METHOD

I took the help of primary and secondary data to achieve the

objective of my project, which include:Primary Data
Observation
Questionnaire
Secondary Data

Websites
Transcripts of Books
Journals
Handouts

LIMITATAION OF THE STUDY

1. The problem discussed was more is technical terms,
thus was difficult to comprehend.
2. Views of only few members could be included because
of time limitation.

Analysis And Data

Interpretation

Q1.

How long you are working in the organization ?

Q2.

what are the various sources of recruitment in your

Organization?

Q3. Are you satisfied with the recruitment process of your company ?

Q4. Are you satisfied with your organization salary increment

Policy ?

Q5. Are you satisfied with the training procedure given in the
Organization ?

Q6. Are you getting regular training in your company ?

Q7. What methods is used for the performance appraisal system in

your organization?

Q8. Are you satisfied with your promotion activities in your

Organization?

Q9.

Does the present performance appraisal system meet your

Career advancement?

10.Are you comfortable with the working environment?

FINDINGS

SWOT OF ITC
Strengths
ITC leveraged it traditional businesses to develop new
brands for new segments. ITC is a diversified company
trading in a number of business sectors including cigarettes,
hotels, paper, agriculture, packaged foods and
confectionary, branded apparel, personal care, greetings
cards, Information Technology, safety matches, incense
sticks and stationery.
Weaknesses
To fund its cash guzzling FMCG start-up, the company is still
dependant upon its tobacco revenues. Cigarettes account for
47 per cent of the company's turnover, and that in itself is
responsible for 80% of its profits. So there is an argument
that ITC's move into FMCG (Fast Moving Consumer Goods) is
being subsidised by its tobacco operations. Its Gold Flake
tobacco brand is the largest FMCG brand in India - and this
single brand alone holds 70% of the tobacco market.
Unrelated diversification is also a major weakness of ITC.
Opportunities
Core brands such as Aashirwad, Mint-o, Bingo! And Sun
Feast (and others) can be developed using strategies of
market development, product development and marketing
penetration.ITC is moving into new and emerging sectors
including Information Technology, supporting business
solutions.
e-Choupal is a well thought of initiative that could be used in
other sectors in many other parts of the world. It is also an

ambitious project that has a goal of reaching 10 million

farmers in 100,000 villages
Per capita consumption of personal care products in India is
the lowest in the world offering an opportunity for ITC's
soaps, shampoos and fragrances under their Wills brand.
Threats
The obvious threat is from competition, both domestic and
international. ITC's opportunities are likely to be
opportunities for other companies as well. Therefore the
dynamic of competition will alter in the medium-term. Then
ITC will need to decide whether being a diversified
conglomerate is the most competitive strategic formation for
a secure future.

CONCLUSION

There are the following conclusions come up after the

research of the project by filling the questionnaire:
The working environment of the organization is
excellent this is reason why employees are doing the
work their and they are stable there.
Generally organization appointed the employees
through the recommendations that is references even
though other sources are there.
The employees are satisfied with the recruitment
process of the organization.
Most of the employees consider that the salary
increment policy is good.
Generally ranking method is used in the organization
for the performance appraisal system and with the
promotion activities.
As they accept that the working environment is really
good this shows thye are satisfied and the satisfaction
of the employees of the organization is very necessary.
And at last I would like to say that satisfied employees
contribute more to the organization this is the reason
why ITC is growing faster.

Recommendations and
suggestions
There are the following suggestions being an HR student I
would like to give the organization:
Organization should keep the eyes on the recruitment
process they should recruit the employees from outside
as well means from where they get the employees they
should recruit them.
As the organization is growing faster they should
emphasis on the training programs even though their
training programs are quite good.
Organization should regularly give the increment on the
salary so that who are not satisfied they would become
also satisfied.
Organization should analyze the training methods and
should adopt those methods which are good for the
employees and promotion activities should be good so
that employees are satisfied as we know this is the
basic requirement of the success.

APPENDICES

A questionnaire was designed to study the Evaluation of the

HR PRACTICES Followed by ITC. It was filled by the
employees of ITC

1)
2)
3)

HR PRACTICES in ITC is transparent

Man power planning forms the basis for
recruitment
ITC is very clear about the attributes,
competencies, attitudes and values they want in
next employee.

4) Complete job description and specification is being

laid down in an advance for recruitment.
5) ITC is able to attract best applicants.

6) As a policy the recruitment at higher level should be

from internal source and of lower level position
from external sources.
7) A strict selection procedure is being followed that is
clear to all employees.
8) Psychometric tests are being conducted for
personality evaluation of candidates during
selection procedure.
9) Selected employee is made clear of his probation
period on his joining in which period his
services can be suspended in case of unfit
performance.
10) You are satisfied with the preference being given
to internal candidate at the time of selection.
11) The companys performance with its present
workforce is excellent.
12) The process of selection is completely free from
all kind of personal biases.

REFRENCES
Human Resource Management by Gary Dessler
Human Resource Development by S.R. Kandula
Human Resource Management by S.V Gangkar
www.google.com
www.itcportal.com