about the project

1. A
PROJECT REPORT
ON
HUMAN RESOURCE CLIMATE.
OF
AARTI INDUSTRIES LTD.
AS PARTIAL FULFILLMENT OF MBA.
YEAR 2012
INTERNAL GUIDE. EXTERNAL GUIDE.
MR. MAULESH RATHOD. Mr.KIRIT SHASHTRI.
SUBMITTED BY.
KAUSAR MANSURI.
MBA 2nd SEM.
ROFEL INSTITUTE OF MANAGEMENT STUDIES.
[AFFILIATED TO GTU (GUJARAT TECHNOLOGICAL UNIVERSITY)]
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2. DECLARATION
We Ms. KAUSAR MANSURI student of MBA sem.2nd ,Year 2011-12 of GIDC RAJJU
SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES ,VAPI, affiliated to Gujarat
Technological University, Ahmadabad hereby declare that the report for comprehensive Project
entitled “HUMAN RESOURCE CLIMATE” is a result of our work and sincere efforts.
I also declare that all the information collected from various secondary sources has been duly
acknowledged in this Project report.
Student signature
_____________
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3. CERTIFICATE
Certified that this comprehensive Project Report Titled” HUMAN RESOURCE CLIMATE “ Is
the bona fide work of Ms.KAUSAR MANSURI( 117160592049) who carried out the research
under my supervision. I also certify further, that to the best of my knowledge the work reported
here in does not from part of any other project Report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or any other candidate.
Place:
Date : (LECT. MAULESH RATHOD)
Director
(Dr. PANKAJ PATEL)
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5. 5

6. PREFACE
“The smallest seed of faith is better than the largest fruit of happiness”
Henry David.
Human Resource Development is a frame work for the improvement of human capital in an
organization. Human resource development is a combination of Training and Education that
ensures the continual improvement and growth of both the individual and the organization.
Human Resource Development is not defined object, but a series of organized processes, “with
a specific learning objective.”
Human Resource Development is the structure that allows for individual development,
potentially satisfying the organization‟s goals. The development of the individual will benefit
both the individual and the organization.
The term climate is used to designate the quality of the internal environment which conditions
in turn the quality of cooperation, the development of the individual, the extent of member‟s
dedication or commitment to organizational purpose becomes translated into results. Climate is
the atmosphere in which individuals help, judge, and reward, constrain and find out about each
others.
HRD climate contributes to the organizations overall health and self-renewing capabilities
which in turn increase the enabling capabilities of individual, dyads, team and the entire
organization. It is the human environment within organization‟s employees performs their job.
It may refer to the environment within department, a major company unit such as a branch,
plant or an entire organization.
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7. ACKNOWLEDGEMENT.
“As we express our gratitude, we must never forget that the highest appreciation is not to
utter words, but to live by them.”
-John Kennedy
Completion of any task small or big isn‟t feasible without the support and wishes of many
people, who are of important in one‟s life. Throughout the completion of this study, there are
many people who have guided, helped, supported and have also encouraged to give my best to
the study. I would like to express my in depth gratitude towards them.
First I would like to express my salutation to God, My parents, My Brother & My Sisters for
giving me the strength, confidence and moral boost to successful complete my entire project.
And also I would like to acknowledge the continuous encouragement and help extended to me
by Mr. Maulesh Rathod, for the guidance & support in preparing the project.
I am very much thankful to entire team of AARTI INDUS. LTD. Especially I like to thanks
Mr. Kirit Shashtri (H.R.Manager), I am equally grateful to all the Staff members of AARTI
INDUS LTD., they have also provided admirable support for completion of this training
programmed.
I express my deep sense of gratitude to Dr. Pankaj Patel-Director GRIMS, Vapi for his
admirable support & sheer commitment in boosting my morals.
THANKS
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8. INDEX
PARTICULARS PAGE
SR NO.
NO.
PREFACE 6.
1.
ACKNOWLEDGEMENT 7.
2.
LIST OF TABLES 9.
3.
INTRODUCTION OF COMPANY 12.
4.
CORPORATE INFORMATION 15.
5.
PRODUCTION DEPARTMENT 26.
6.
FINANCE DEPARTMENT 30.
7.
MARKETING DEPARTMENT 32.
8.
QUALITY ASSURANCE & QUALITY CONTROL DEPARTMENT 35.
9.
RESEARCH & DEVELOPMENT DEPARTMENT 38.
10.
HUMAN RESOURCE DEPARTMENT 40.
11.
INTRODUCTION OF RESEARCH TOPIC 57.
12.
RESEARCH METHODOLOGY 67.
13.
REVIEW OF LITERATURE 72.
14.
DATA ANALYSIS & INTERPRETATION 76.
15.
FINDINGS,CONCLUSION & SUGGESTION 122.
16.
ANNEXURE 125.
17.
APPENDIX 131.
18.
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9. LIST OF TABLES
TABLE TITLE PAGE NO.
NO
01 Table Showing sex-wise distribution of the respondents.
77
02 Table Showing age wised distribution of the respondents.
78
03 Table Showing educational wised distribution of the respondents.
79
04 Table Showing Department wise distribution of the respondents.
80
05 Table Showing Department wised distribution of employees.
81
06 Table Showing of the respondents according to working experience in
Aarti industries Ltd. 82
07 Table Showing perception of respondents regarding top management
ways to make sure that employees enjoy their work. 83
08 Table Showing perceptions of the respondents regarding employees are
invited for participation in decision making by top management. 84
09 Table Showing the perception of the respondents regarding employees
are very flexible and discuss their personal problems with their 85
supervisor.
10 Table Showing the perception of the respondents regarding there is
tactfulness, smartness and even a little manipulation in employees to 86
get things done.
11 Table showing the perception of the respondents regarding employees
take points to find out their supervising officer and colleagues. 87
12 Table showing the opinion of the respondents regarding team spirit is of
high order in the organization. 88
13 Table showing perception of the respondents about Manager’s belief
that employee’s behavior can be changed and can be developed at any 89
stage of their life.
14 Table showing perception of the respondents regarding the
psychological climate helps employee in developing themselves by 90
acquiring new knowledge & skills.
15 Table showing perception of the respondents regarding Supervisor
treats their subordinates with understanding and help them when they 91
make any mistake.
16 Table showing perception of the respondents regarding the mission of
organization makes me feel that I am Important. 92
17 Table showing perceptions of the respondents regarding employees in
this organization are helpful to each to other. 93
18
Table showing perception of the respondents regarding management is flexible
and understand the importance of balancing professional life & personal life. 94
19 Table showing perceptions of the respondents regarding employees in
this organization trust each other. 95
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10. 20 Table showing perception of the respondents regarding employee offer
moral support and help to other employees & colleagues in crisis 96
21 Table showing perception of the respondents regarding management
use to consider both positive and negative aspects before taking action. 97
22 Table showing perception of the respondents regarding leaders follow-
up on employees suggestion. 98
23 Table showing perception of the respondents regarding the
management ensures employee’s welfare so that the employees can 99
save their mental energy for work.
24 Table showing perception of the respondents regarding the mechanism
which are there to reward any good work made by employees. 100
25 Table showing perception of the respondents regarding performance
appraisal reports is filled- in based on objective assessment and not on 101
favoritism.
26 Table showing perception of the respondents regarding promotion is
based on the suitability of the promote rather than on favoritism. 102
27 Table showing perception of the respondents regarding performance
appraisal helps them in identifying the strength and weaknesses. 103
28 Table showing perception of the respondents regarding senior officers
take active interest in their juniors and help them to learn their job. 104
29 Table showing perception of the respondents regarding delegation of
authority to encourage junior to develop handling higher responsibilities 105
30 Table showing perception of the respondents regarding this company
makes continuous improvement in all areas. 106
31 Table showing perception of the respondents regarding job rotation
facilitates development of employee in organization. 107
32 Table showing perception of the respondents regarding when
employees are sponsored for training, they take it seriously and try to 108
learn from the programs they attend.
33 Table showing perception of the respondents regarding employees
returning from training programmes are given opportunities to try what 109
they have learnt.
34 Table showing perception of the respondents regarding development of
subordinates is seen as an important part of their job by the managers. 110
35 Table showing perception of the respondents regarding the top
management is willing to invest a considerable part of their time and 111
other resource to ensure the development of employees.
36 Table showing perception of the respondents regarding the organization
future plans are made known to the managerial staff & help them 112
develop their junior and prepare them for future.
37 Table showing perception of the respondents regarding career
opportunities are pointed out to junior by senior officer in the 113
organization.
38 Table showing perception of the respondents regarding employees
make attempts to change behavior on the basis feedback received. 114
39 Table showing perception of the respondents regarding the employee in
the organization does not have any fixed mental impression about each 115
other.
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11. 40 Table showing perception of the respondents regarding employees are
encouraged to experiment with new methods and try out creative ideas. 116
41 Table showing perceptions of the respondents regarding employees are
not afraid to express or discuss their feelings to the supervisor. 117
42 Table showing perception of the respondents regarding employees are
encouraged to take initiative and do things on their own without to wait 118
to interactions from supervisor.
43 Table showing perception of the respondents regarding telling polite lie
is preferable than telling the unpleasant truth. 119
44 Table showing perception of the respondents regarding you have free
interaction amongst other employees, each respecting others feelings, 120
competence and sense of judgment
45 Table showing perception of the respondents regarding people discus
problems openly and try to solve it rather than keep accusing each other 121
behind the back.
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12. 12

13. INTRODUCTION
Aarti has started its operations in the year 1975 in the name of
alchemies labs in a small of way with a single product namely
Dimentyl sulphate.
Today Aarti is one of the leading suppliers to global manufacturers of Dyes, Pigments,
Agrochemicals, Pharmaceuticals & rubber chemicals. Aarti has acquired world-class expertise
in the development & manufacture of these chemicals. Aarti is amongst the largest producers
of Benzene based basic and intermediate chemicals in India. It has corporate office in Mumbai
& representatives in U.S.A & Europe.
Aarti has 16 manufacturing units spread across Gujarat & Maharashtra and a strong
Research & Development with sophisticated instruments & pool of scientists.
Aarti has strong Research & Development center with sophisticated instruments & pool
of scientists.
Aarti has customers spread across the globe in 60 countries with major presence in
USA, Europe, Japan & India.
AARTI has attained a group turnover of US $ 515 million in the year April 2009 –
March 2010.
AARTI group is strategically placed to exploit growth opportunities in the Chemical
Industry. In view of its technical expertise and broad base satisfied clientele in India and
abroad, AARTI is looking for global partners and strategic alliances in areas of mutual
interest viz.
Development of International markets for AARTI's products.
Toll manufacturing.
Transfer of Technology / Technical know-how.
13

14. AARTI INDUSTRIES LIMITED (AIL) & AARTI DRUGS LIMITED (ADL) are listed on
Stock Exchanges. AARTI has a Subsidiary AARTI HEALTHCARE LIMITED (AHCL),
which is engaged in manufacturing of Active pharma ingredients ranging from Ace Inhibitors,
Bronchodilators to Steroids.
HISTORY OF AARTI INDUSTRIES LTD.
Aarti industries ltd (AIL) was established in 1984 as a small venture by a group of technocrats.
It is a public limited company. The promoter was Mr. Chandrakant over the last more than 20
years it has evolved to it presents status crossing several milestones. In the initial stage the
company was producing DMS products. In 1992, they expanded their company and started
producing pharmacy products. During this evolution period the AARTI Industries LTD had set
up a member of expansion and diversification project funded by a public issue in 1992,
institutional assistance and from when the company had started in 1984 and now the period of
2006 it had undergone the vast changes many new machines had been recently built,
innovation and expansion is done to create the demand and maintain the quality. So we can see
that this company is at stage where it can find many company lagging behind.
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15. 15

16. CORPORATE INFORMATION
NAME OF THE COMPANY : AARTI INDUSTRIES LIMITED.
TYPE OF COMPANY: Public Limited
ESTABLISHEDYEAR : 1984
SIZE OF COMPANY : Large Scale
PLANTS: 1.Plot no.801,801/23
802,803/1-2-3, GIDC,
Phase 3,VAPI-396195
2.Plot no. 902, GIDC ESTATE
Phase 2, VAPI-396195
DIST: VALSAD, GUJARAT
3. Plot No. 752-753-754
SARIGAM, TA: UMARGOAN
DIST: VALSAD, GUJARAT
4. Plot No. 758/1,758/2,
GIDC ESTATE JHAGADIA
DI: BHARUCH,GUJARAT
5. Plot No K-18,MIDC
TARAPUR,
DI: THANE,MAHARASHTRA
6. Plot no. E-50, MIDC
TARAPUR
DI: THANE
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17. CITI BANK N.A
REGISTERED OFFICE:
Plot no. 801,801/23
GIDC ESTATE, PHASE-3
VAPI-396195,VALSAD.
Dog Kosher,
CORPORATE OFFICE:
2nd floor, L.B.S Marg,
Mulund-Goregoan Link Road,
Mulund (w), Mumbai-400 080
Chandrakant. V. Gogri (chairman)
BOARD OF DIRECTORS:
Rajendra.V.Gogri (vice chairman & Managing
Director).
Shantilal .T. Shah (vice chairman)
INDEPENDENT DIRECTORS: Ramdas .M.Gandhi
Laxmichand .k. Jain
Vijay .H. Patil
Haresh .k.Chheda
Parimal .H. Desai
WHOLE TIME DIRECTORS:
Manoj .M. Chheda
Rashesh Chheda
Hetal Gogri Gala
Kirit .R.Mehta
Mona Patel
COMPANY SECRETARY :
17

18. AUDITORS: M/S Parikh Joshi & Kothare
49/2341,M.H.B.COLONY
Gandhi Nagar, Bandra (EAST)
Mumbai-400051
REGISTRAR & TRANSFER AGENT Sharepro Services (INDIA) PVT.LTD.
Satam Estate, 3rd floor,
Above bank of Baroda,
Cardinal Gracious road, Chakala,
Andheri (E), Mumbai-400099
Phone no: 677300351/352/353
I. Registered Plotno.801,801/23
802,803/1-2-3,GIDC,
office:
Phase3,VAPI-396195
DIST: VALSAD, GUJARAT
II. Corporate office: Udyog Kshetra,
2nd floor, L.B.S Marg,
Mulund-Goregoan Link Road,
Mulund (w), Mumbai-400 080
BANKERS: Bank of Baroda
Union Bank of India
State Bank of India
ANB Amora Bank
Standard Chartered Bank
HDFC Bank Ltd.
Export- Import Bank of India
IDBI Bank N.A.
UTI/AXIS Bank Ltd.
18

19. Mr. Chandrakant Gogri – Chairman
A Chemical Engineer from UDCT, is the founder of Aarti group
starting from a small unit to path breaking enterprise. A pioneering
entrepreneur, has varied experience and expertise covering Projects,
Operations, Process Development and Marketing.
Mr. Rajendra Gogri – Vice Chairman &
Managing Director
A Brilliant Chemical Engineer from UDCT, Mumbai, has also
completed his Masters in Chemical Engineering from IOWA
University of USA. He has many years of expertise in the areas of Operations, Marketing &
Financial Management.
Mr. Shantilal Shah – Vice Chairman
He is the founder, director of the Aarti Group. Heads the banking and
financial operations of Aarti Group.
Mr. Parimal Desai – Director
Chemical Engineering graduate from UDCT, Mumbai, is a Chemical
Engineer to the core. Our founder director, he has been in-charge of
Technical and Research & Development. He has more than 30 years of
experience in Chemical and Pharma field.
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20. Mr. Manoj Chheda - Director
Graduate in Commerce from Mumbai University. He has Over 20
years of experience in local and International Marketing. Currently
takes care of International Marketing.
Mr. Rashesh Gogri - Director
A graduate in Production Engineering from Mumbai. He is head of
Commercial and Marketing Functions with the special focus on
Pharma products.
Ms. Hetal Gala Gogri – Director
An Engineer in Electronics and has done MDP from IIM –
Ahmedabad. She has varied experience in Operations, Purchase &
Marketing. Currently she heads purchase and Supply Chain
Management.
Mr. Kirit Mehta - Director
A graduate in commerce. Has more than 30 years of experience in
Chemical Industry.
20

21. MANAGEMENT OF AARTI INDUSTRIES LTD.
MANAGEMENT OF AARTI INDUSTRIES LTD.
TOP LEVEL
MIDDLE LEVEL BOTTOM LEVEL
ASSISTANT
GM ASS DEP SENI MAN OPERATORS
T UTY OR AGER
GM GM MAN TECHNICIANS
GER
SUPERVISORS
HELPERS
SENIOR ASST. SENIOR JUNIOR SENIOR SENIOR JUNIOR
DEP. DEP. ENGINEER ENGINEER ENGINE EXECUTI EXECUTIVE
MGR MGR ER VE .
OFFICE
R
21

22. Mission & Vision statement.
Vision
 To retain leadership in domestic market.
 To attain significant presence in global market.
 To become supplier of choice to leading customers.
 To be always committed to the employees, shareholders and the society at large.
Mission
 To constantly strive to set up and maintain global size plant facilities.
 To become customer-driven company by providing customized solutions and service to
meet changing customer requirements.
 To maintain consistent quality and timely delivery at competitive prices.
 To use best cost effective manufacturing methods supported by proven, eco-friendly
and safe technologies.
 Commitment to growth by Research & new product development & progressive
increase in Exports.
 Continuous focus on people to encourage and nurture winning organizational culture.
 To meet the challenges of competition by dynamic management drive.
 To set up facilities with USFDA and other overseas approvals.
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23. GOAL.
AARTI group is strategically placed to exploit growth opportunities in the chemical industry.
In the view of its technical and broad base satisfied clientele in India and abroad. AARTI is
looking for global partners and strategic alliances in areas of mutual interest viz.
 Development of international markets for AARTI‟S products.
 Toll manufacturing.
 Transfer of technology/ technical know-how.
SWOT ANALYSIS.
Strengths
 Promoters first generation technocrats with proven track record
 Global size plants & most cost efficient manufacturing process
 World class Research & Development unit with sophisticated instruments. Recognized
by dept of DSIR.
 Ranked amongst the top 5 global manufacturers for our key products
 Highly integrated plants / processes.
 Diversified customer base with over 150 export customers and 500 domestic customers
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24.  Multi product and multi manufacturing locations, ideally placed to serve global
customers
 Strong & cost effective logistic system.
 ISO 9002 certified and GMP approved.
 It had strong technical base with the core whole time director being technocrats with
sound entrepreneur skills.
 The company being a multi location, multi product entity has manufacturing abilities
for a large number of products which enables them to change of product mix as per
market demands.
 In house research and development centers recognized by the department of scientific
and industrial research continuous research for new products process improvements,
energy consumption reduction.
 The company has a large customer both local and international. The company has
strived to serve them with loyalty since inception. It is the support of these customers as
well as that its supplier that has enabled the company to sustain growth.
 The company has always given priority to environment, health and safety. It had
technologically upgraded efficient treatment facilities at all its units.
WEAKNESS
 Housekeeping is not up to the mark.
 Centralized decision making which many a times hinders the functioning of different
departments.
OPPURTUNTIES
 The company is stream lining its new units at Vapi and Tarapur for custom synthesis
and USDFA approved pharmaceutical manufacturing.
 The company is also working out marketing tie-ups with multinational for its existing
and new range product.
 The company has a large customer base comprising multinational and global majors.
This fact coupled with the in house, competent R&D team gives opportunities to
increase volume in existing products and to introduce new products.
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25. THREATS:-
 The company‟s threats perception is the shifting of some its end usage products to
China. Accordingly the company is making continuous efforts to increase its presence
in China.
 The company‟s ability to change its product mix quickly, its vast range of products
numbering about 75% and its foray into specialty chemical and pharmaceuticals also
makes the company confident of countering this threat effectively.
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26. 26

27. PRODUCTION DEPARTMENT
Objectives:-
 To ensure economic utilization of available floor space.
 To ensure efficient control over the various processes of production
 To minimize cost of production
 To maximize convenience and safety of the workers
 To maximize handling and transportation of material.
Raw Material:-
The company manufacture is products from the basic raw material- benzene and sulphric. The
other major raw material is chlorine, nitric acid, ammonia, caustic soda and methanol. All these
raw material are available freely in sufficient quantity in the local and international markets.
The major suppliers of this raw material are:
Reliance industries Ltd
Bharat petroleum corporation Ltd.
National organic Chemical Industries Ltd.
Grasim Industries
Deepak Nitrate Ltd
Transport Ltd Dubai
Helm Chemicals Germany
Universal Chemical Bahrain.
Product of the AIL:-
27

28.  Para Nitro Chloral Benzene (PNCB)
 Ortho Nitro Chloral Benzene (ONCB)
 2:4 Dinitro Chlora Benzene (DNCB)
 Para Dichlora Benzene (PDCB)
 Ortho Dichlora Benzene (ODCB)
 Nitro Benzene
 Alkylated Anilines & Toluidness
 Chlora Phenols
 Fluoro Compounds
 Agrochemicals
 Other Major Products
 Bulk Drug Intermediates/specialty Chemicals
 Bulk Pharmaceuticals
 Bulk Drugs under R& D
 Dyes
28

29. There are the above chemical products which are exported by the AIL to the different countries
these countries are as follows:
1. United State Of America
2. Germany
3. Italy
4. Belgium
5. Japan
6. United kingdom
7. Spain
8. Switzerland
9. Korea
Product Uses
 Manufacturing of fertilizer, heavy chemical, coal , tar product, dyes, plastic, paints and
pigment.
 Explosive , textile, inorganic fertilizer like super phosphate , sulphates, etc.
 In metal processing use for pickling of steel, in purification of petroleum product
 Pharmaceuticals, making of alcohols, detergent, insecticides and herbicides.
 In food industry in manufacturing of starch syrups and other products.
 In transfer of lead accumulators or batteries are used.
Raw water:
This utility is used mainly for the purpose of being made into steam. This largest supplier of
this is the Gujarat Board.
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30. 30

31. FINANCE DEPARTMENT
Finance plays a major role in determining the position of a company. A person not trained in
finance management of a company has face N numbers of problems which may affect the day
to day functioning of his company. A person not knowledge of finance may not be able to the
exact suitable return on his investment, account and finance walk parallel but as compare to
account finance is a waste subject
Financial Functions:-
 Find the cheapest source of finance
 Effective utilization of money
 „Capital is raised through issue of shares, debentures, interoperate deposits,
financial,institutions, commercial papers, etc.
 Negotiations with suppliers.
Responsibility of Finance Manager:
1) He keeps all the data related to finance and sees that the funds organization is utilized in
the most efficient manner.
2) He is the most important person in the shaping the future of the company and has a vital
role in decisions of the allocation of capital.
3) Now a day‟s finance manager solves important management problem and his role is
becoming pervasive and significant.
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32. 32

33. MARKETING DEPARTMENT
What is marketing?
“It is social and managerial process by which individual and group obtain what they need and
want through creating, offering and exchanging products of value each other”.
The same in the case of AILS. The AIL tries its best to satisfy their customers by providing
with the best quality products. AIL considers quality of its products as the company‟s strength.
The AIL by giving the proper amount of pricing of its products is able to cater a good amount
of customers for the company.
1. 50% of the manufacturing of AIL‟s products is exported to the foreign countries.
2. 30% of the AIL‟s products is used by the sister concern of the AIL.
3. 20% of the manufacturing of AIL is being sent to the Indian market.
The competitor of Aarti Industries Ltd.
 Alankar Industries
 Anami Organics
 Apurva Chemical
 Chirag Organics Pvt Ltd.
 Kamala Intermediaries
 Nascent Chemical Ind. Ltd.
 Micro Fine.
 Shanti Intermediaries Pvt. Ltd.
 Vapi Acid & chemicals
 Vapi organic Chemical Pvt. Ltd
 Panoli Intermediate
 Deepak Fertilizer Ltd.
 Industrial Solvent and chemical Ltd.
Marketing Objectives of AIL
To make awareness of their product
To become the leader of the manufacturing products
To earn profit
33

34. To have maximum sales of their product with maximum customers
Enhancing economic growth.
Strengthening social responsibility
Intensifying environmental commitment
Ensuring a better tomorrow
Quality:-
Quality is one of the important and basic aspects of marketing. Being a chemical company,
consumers may not be directly using AIL‟s products and it may be difficult to see how the
chemicals they produce enrich the lives of people
Design and feature:-
As the product is chemical the design and the features is not possible. The e-products in the
AIL are either in the powdered form or in the liquid form.
34

35. 35

36. QUALITY CONTROL & QUALITY
ASSURANCE DEPARTMENT
It is the sum of the attributes that describes that product. According to the Aarti industry, the
objectives of quality are given below.
Objectives of Quality
Aarti industry is expert in producing a product with a world class quality. Its objectives are as
follows
 To satisfy the consumer
 To reduce the cost
 To improve the income
 To increase the productivity.
Aarti has expertise in developing new products & processes that have world class quality. Aarti
is doing research in various areas with special emphasis on pharmaceutical intermediates ,
Agro intermediate , pharmaceuticals, Agrochemicals & specialty chemicals.
Quality management systems:-
Aarti Industries Ltd is an ISO 9001-2000
Aarti‟s pharmaceutical plants are GMP (good manufacturing practices) approved and
some of the plants have got ISO 9002 Certification.
Quality Assurance
The AIL is a company which is an able to provide a mass goods of uniform quality. AIL also
follows the quality. AIL also follows the quality policy according to which it had obtained ISO-
9001, 2000 version certificate (obtained from TUV)
Objectives of the safety Department:
1. Providing training to the workers for running complicated machines.
2. Apply many rules and regulation as per the Govt requirements.
3. Safety department declare some information safety policy.
4. Purchase of safety equipment
5. To make awareness
6. Maintenance of safety equipment
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37. 7. Periodically maintain of safety inspection.
Safety equipment:
1) Medical Oxygen
2) Canister Mask
3) Ayer Supply (organic)
4) Canister mask (in organic)
5) Dust mask
6) Helmet
7) Eye plugs
8) Eye mask
9) Face seal
10) Safety goggles
11) P.V.C suit
12) Hand gloves
13) Apron
14) Welding shoes
15) Safety shoes
16) Safety belt
37

38. 38

39. RESEARCH &DEVELOPMENT DEPARTMENT
AARTI has expertise in developing new products and processes that have world-class quality.
AARTI is doing Research in various areas with special emphasis on Pharmaceutical
Intermediates, Agro Intermediates, Pharmaceuticals, Agrochemicals and Specialty
Chemicals
Aarti has Research & Development facility which is approved by DSIR. Aarti has dedicated
pool of engineers & scientists who continuously work on new products processes &
innovations.
AARTI has fully equipped laboratory with high-tech advanced instruments and highly
qualified technical personnel at its R & D centers. Its advanced Analytical Instruments
include:
Gas Chromatograph & HPLC Digital Polari meter
Auto Titrator Digital Melting Point Instrument
UV Visible Spectrophotometer FTIR Spectrophotometer
AARTI at its Pilot Plant facility has R & D Process Equipments like:
Glass Reaction Equipment Glass Lined Reactors
High Pressure Autoclave SS 316 Reactors
Distillation Equipment Centrifuges
Sparkler Filter Air Handling Systems
AARTI's pharmaceutical plants are GMP approved and some of the plants have got ISO
9002 Certification.
39

40. Aarti has fully equipped laboratory with high-tech advanced instruments & highly qualified
technical personnel as its R &D centers.
Its advanced analytical instrument includes:
 Gas chromatograph & HPLC
 Auto Titrator
 Uv visible spectrophotometer
 4Digital polarimeter
 FTIR spectrophotometer
 Glass Reaction equipment
 High pressure Auticlave
 Distillation equipment
 Sparkler filter
 Glass lined reactors
 Centrifuges
40

41. 41

42. HUMAN RESOURCE DEPARTMENT.
Human resource department is that of the management which is related with management of
planning, organizing, directing, and controlling of the procurement, development,
compensation, integration, maintenance and separation of human resources to the end that
individual, organization and sociality objectives are accomplished, its objective is the
maintenance of those relationship on the basis of which organization can get maximum
personal contribution from employees.
The human resource is important to any labor intensive or capital intensive industries. So they
should place an important position to an industry. The Aarti industry Limited regular
undertakes the training activities and HR initiatives. The company has also continued its
scheme for assistance to employees with a view to ensure that their basic housing needs are
fulfilled. The company has been continuously focusing. On people and processes those to
encourage and realize their full potential through continuous on job learning and through other
HRD initiatives coordinal and harmonious relation with employees continued to prevail
through the year under review.
FUNCTIONS OF HUMAN RESOURCE DEPATMENT
The following are main functions of human resource manager:
 Application and control of company rules and organization policy.
 Recruitment of man power intended by HOD and approved by management and top
head.
 Employees and trainees induction programmed arrangement.
 Development of trainees by training and approvals.
 Transport arrangement for required by employees, quests & customers.
 Booking and reservation as required by employees/quests.
 Safety of company material and employees.
 Maintenance of first aid material.
 Canteen administration.
 Assistance of meeting and conference.
 Company occasions arrangement like annual day, picnic.
 Labor welfare activities as decided by management
 Arrangement of uniform, shoes, seasonal wear, safety equipment.
 Housekeeping of company premises.
42

43.  Casual labor arrangement.
 Building maintenance and office maintenance.
 Public relation activities.
 Salary wages and perk administration works and record keeping.
 Telecom related activities.
 Appraisal assistant of employees for increments, training, promotions.
 Factory act related activities.
 Stationary planning and arrangement.
MAJOR FUNCTIONS OF HUMAN RESOURCE DEPARTMENT.
 Recruitment
 Selection
 Remuneration
 Promotion and transfer
 Leave structure
Recruitment
Man power recruitment is one of the most important and difficult part of the organization. If
any mistake is done in the recruitment process than it will be directly affects the result of the
organization. If any mistake is done in the recruitment process than it will be directly affects
the result of the organization. Aarti is producing some of hazardous chemical as for them man
power recruitment process is through job.
Recruitment is the generating of the application of specific position through three common
resources i.e. advertisement, stage employees exchange agencies or a private employment.
Source of recruitment
1) Internal sources:-
a) Retired or retrenched employees who want to return back to company may be rehired.
b) Dependents and relative of deceased or disabled employees.
2) External sources:-
a) Advertisement
b) Educational institution
c) Labor contractors
d) Recruitment agencies
e)
43

44. Recruitment Process Chemist & engineers
Newspaper Written Test
Application
Sort Test
Receiving
application
Interview
Sorting out
Application
Offer letter
Interview
Joining the Organization
Offer letter
Appointment Appointment Letter
Letter
Joining the
organization
Finalize
II Interview
Selection
Selection is a process of choosing the most suitable persons out of all the application. It is a
process of matching the qualification with that of job requirements. It is a process of weeding
out of the unsuitable candidates and finally identifying the most suitable candidates. The last
step of recruitment involves identifying the sources of manpower and simulating them to apply
for jobs whereas selection is process of selection the best out of the available alternatives.
44

45. Selection process
Application Forms
Interview
Physical Examination
Reference
Final Approval
Employment
Remuneration
The remuneration that the AARTI INDUSTRIES LTD. provides to each of the employees is as
follows
1) Salary:-
The board of director is to be provided with the salary of Rs. 85,000/- per month with power to
make an annual increment area under discussion to a maximum amount of Rs. 1, 50,000/- per
month in respect of salary a privilege up to 100% of salary.
2) Commission:-
In accumulation to the salary, the whole time Directors of AARTI INDUSTRIES LTD shall
also be entitled to be paid share in comprehensive commission calculated at the rate of 1% of
net profit of company computed under section 349 of the companies act, 1956 payable to all
company share of such commission shall be payable after the annual accounts are adopted by
the shareholders.
3) Perquisites:-
Apart from the salary and commission regularly paid, the whole time Directors shall be
permitted with allowances:
45

46.  House rent allowance of Rs.15000/- per month
 Bonus/ex-gratis Rs 85000/- per annum
 Compensation of Medical Expenses and/or Medical Insurance premiums for self and
family members as company‟s policy
 Personal Accident Insurance as per company‟s policy.
4) The salary payments:-
Salary is usually paid in the first week of every month. Salary officer prepares covers with the
name and personal code no., of employees and the pay slip along with cash or cheque as per
guide.
 Mode of payments in cash or Bank Transfer
Staff -- cash option or bank transfer
Officer – usually bank transfer
 The structure of the wages and the salaries
The human resource department also deals with wages and salary system. For the AIL the
happiness and contentment of the employees‟ is the main concern, which is reflected by the
health wage and salary structure design in the company. The AIL pursues the minimum wage
rate policy that fixed by the government.
 The salary Diminution :-
The time office keeps the documentation of staff employees reporting at duty i.e. the time of
entering and leaving. If employees report late on job, in that case the company cuts the salary
of that particular employees
 If late by 16 min to 35 min -- pay of half hrs
 If late by 35 min to 45 min -- pay of 45 min
 If late by 46 min to 60 min – pay of 1 hrs
 If late by 2 hrs to 3 hrs ---- pay of half days
 Enlightenment :-
 For the purpose of this agreement, “family” means the spouse, the dependent children
and development parents, if any, of the whole time Director.
 No time fee shall be payable to him for attending the meeting of the Board of the
Director or committee thereof.
 The other terms and condition of the agreement are such as are customarily contained in
agreement of similar nature.
 The compensation package :-
46

47. Basic + Dearness allowance + other financial pays like cash canteen subsidies, „washing
allowance , shift allowance , contribution of provident fund gratuity, medical charges , personal
pays, inconvenience, chemical, and hazardous allowance, Etc.
 Shift and working Hours :-
Timing at AIL are as follows
1) General shift 8.00 am to 5.00 pm on all working days
2) Lunch time is from 12.00 to 1.00 pm & 1.00 pm to 2.00
3) There are total 3 shifts in the company i.e. morning, evening and night.
Wage and salary structure
This department also manages wages and salary system. The employee‟s satisfaction is the
priority of the company, which is reflected by the health wage and salary structure design over
here. The company follows the minimum wage rate policy, fixed the Govt.
 Salary determination :-
As per the minimum wage rate policy fixed by the government.
 Reduction on salary:-
The time office keeps the whole record of staff employees reporting to and from duty. If
employees come late on duty, company cut the salary
 Compensation salary:-
Basic + Dearness allowance + other financial pays like cash canteen subsidies, „washing
allowance , shift allowance , contribution of provident fund gratuity, medical charges , personal
pays, inconvenience, chemical, and hazardous allowance, Etc.
 Salary payment:-
Salary is usually paid in the first week of every month. Salary officer prepare covers with the
name and personal code no., of employees and the pay slip along with cash or cheque as per
grade.
 Mode of payments in cash or Bank Transfer
Staff -- cash option or bank transfer
Officer – usually bank transfer
 Industrial Act. Applicable by human resource in AIL.
1) Factory‟s Act, 1948
2) Industrial dispute act, 1947
3) Minimum wages act, 1948
47

48. 4) Employees provident funds and miscellaneous act, 1942
5) Payment of Bonus act,1965
6) Payment wages act, 1936
7) Payment of gratuity act, 1972
8) The worker men‟s compensation Act, 1923
9) Apprentice Act,
10) The employee state insurance Act, 1948
11) Contract labor Act
12) Payment of Gujarat Labor welfare fund
Promotion and Transfer
 Promotion:-
AIL gives an up advancements to its employees with better pay, position and work
responsibility.
 Promotion policy :-
AIL has adopted seniority as well as merit basis promotion policy. The seniority of employee is
regarded grade wise as per character residence period on the particular grade. Also the various
other merits are considered.
 Promotion Criteria:-
Company gives promotion on the basis of seniority. Company has decided to give promotion
by the way of seniority 40% and out of 60%, 20% by the way of personal interview and 40%
by performance appraisal.AIL has decided to give promotion after every 2 years of period of
time. If one not get satisfaction, at that post, he back to his position during the promotion
period.
 Transfer
A transfer is a lateral shift causing movement of an employee from one job, section,
department shift, plan or position to another at some or another at some or another place with
on charge of salary status and responsibility, etc
 Internal transfer:-
AIL internal transfer or department transfers are avoided as far as possible.
 Period Transfer :-
This type of transfer mainly carries in the marketing department. Whose regional areas and
sales department are located throughout the country?
48

49. According to policy marketing personal is transfer every four years, so they can come back to
the native state. Frequent transfer are avoided in company, they care of its adverse effect.
Leave Structure
 Weekly off:-
If an employee is working in factory, i.e. different branch, the weekly off is on Sunday. If an
employee is working at office (Mumbai), the weekly off is on Saturday and Sunday.
 Paid holiday:-
The employees are entitled to take right holidays in a year, which is declared by management
in the month of Jan.
 Sick leave
9 days of sick leave are available per annum and credited on 1st Jan every year during the first
year of employment, however this leave benefit will be available on pro-rate basis
accumulated. Sick leave can be incase at the time of retirement and death only which can be up
to a maximum 72 days.
 Casual leave:-
9 days casual leave is available per annum and directed however this leave benefit will be
available on pro-rate basis, since casual leave benefit merit. The applicability of the scheme is
that the scheme will be applicable to all employees of the company and their studying in STD
5th to 12th. The approximate budget amount already set and given to the child will be Rs.
32000/-P.A. (eight students every year x4000/- fees of each)
 Voluntary Retirement Scheme:-
The Human Resource Department has also implemented a special type of policy for the
employees named as Voluntary Retirement scheme. Under this scheme, if an employee is
above 40 years of age and retire voluntary. He will be entitled to get the minimum 4 month
salary excluding the benefit for the remaining years. And not many but only two employees
have gone for this scheme.
 Milk scheme:-
At present AIL is giving milk coupons to all of its employees expect some service department
that are excluded from the scheme. Along with the milk coupons, AIL is giving tea allowances
to all of its @ Rs. 4/- per attend.
 Funeral scheme:-
49

50. The scheme is such that Rs. 2500/- to be given to all the employees on behalf of the society and
AIL on expiry of any of the dependent family member. Company will compensate the amount
to society. This is a small way to show the gratitude and company‟s concern towards the
employee and their family.
 Welfare scheme for employees
The AIL also provides some welfare schemes for their employees so that they can help their
employees in some or other ways.
Med claim of employees
Personal accident
Employees D-link insurance scheme.
Group gratuity scheme
School admission
Housing admission
Cycle/ car loans
L.I.C through salary
50

51. 51

52. INTRODUCTION OF HUMAN RESOURCE CLIMATE.
The history and origin of Human Resource Development is not very old. The term came into
use only in the early seventies. The term HRD was first applied in 1968 in the George
Washington University. In 1969, it was used in Miami at the American Society or Training and
Development Conference. But by the middle of 1970s it was gaining more acceptances, but
was being used by many as merely as more attractive term than Training and Development. In
the opinion of some management thinkers Japan is the first country to stress and use HRD
practices. “Better people”, not merely better technology the surest way to a “better society” is
the most popular belief in Japan.
According to Prof.Udai Pareekh, as far as India is concerned, the term HRD was introduced for
the first time in the State Bank of India in 1972. It is philosophical value concept developed by
Dr. Udai Pareekh and Dr. T.V.Rao at the Indian Institute of Management,Ahemdabad. By the
late seventies, this professional outlook on HRD spread to a few public and introduced the
concept with an objective and facilitating growth of employees, especially people introduced at
lower levels. In BHEL, this concept was introduced in 1980. Similarly in SAIL, Maruti Udyog
Ltd., Indian Airlines and TISCO.
Even while introducing HRD, many organizations were under the impression that it was
nothing but Training and Development concept. Certain companies start renaming their
Training and Development Departments and some have created new departments. Later some
other personnel management functions like performance Appraisal, career Planning and
Development, Feedback and counseling, organizational Development and Data Storage system
were included as sub-systems of HRD.
CONCEPT HRD.
HRD is concerned with the development of Human Resource in an organization. Development
means improving the existing capacities to the Human Resource in the organization and
helping them to acquire new capabilities required for the achievement of the corporate as well
as individual goals.
HRD is mainly concerned with developing the skill, knowledge and competencies of people
and it is people-oriented concept. When we call it as a people-oriented concept the question of
people being developed in the larger or national context origin the smaller organizational
52

53. context? Is it different at the macro and micro level? HRD can be applied both for the national
level and organizational level. But many personal mangers and organization view HRD as
synonymous to training and development. Many organizations in the country renamed their
training departments as HRD departments. Some educational, institutions started awarding
degrees and diplomas in HRD even though the concept is not yet crystal-clear. HRD from
organizational point view is a process in which the employees of an organization are
helped/motivated to acquire and develop technical, managerial and behavioral knowledge,
skills and abilities, and mould the values, beliefs, attitude necessary to perform present and
future roles by realizing highest human potential with a view to contribute positively to the
organizational, group, individual and social goals. A comparative analysis of these definitions
shows that third definition seems to be comprehensive and elaborate as it deals with the
development aspects of all the components of human resources. Further, it deals with all types
of skills, the present and future organizational needs and aspect of contribution to not only
organizational also other goals. The analysis of the third definition further shows that there are
three aspects.viz.
1. Employees of an organization are helped/motivated;
2. Acquire, develop and mould various aspects of human resources; and
3. Contribute to the organizational, group, individual and social goals.
The first aspect deals with helping and motivating factors for HRD. These factors may be
called Enabling factors which include: organization structure, organizational climate, HRD
climate, HRD knowledge and skills to managers, human resource planning, recruitment and
selection. The second aspect deals with the techniques or methods which are the means to
acquire develop and mould the various human resources. These techniques include:
Performance, appraisal, potential appraisal, career planning and development, Training,
Management development, Organizational development, Social cultural programs, and
Workers participation in management and quality circles. The third category includes the
outcomes contribution of the HRD process to the goals of the organization, group, individuals
and the society.
HRD believes that individual in an organization have unlimited potential for growth and
development and that their potential can be developed and multiplied through appropriate and
systematic efforts. Given the opportunities and by providing the right type of climate in the
organization, individuals can be helped to give full expression of their potential, contributing to
the achievement of goals of the organization and thereby ensuring optimization of human
53

54. resources. Investment in human beings is another underlying concept of the human resource
system. The organization accepts that development of human resources involves investment of
time and concern for growth. Everyone in the organization will have to take self-responsibility
for growth and optimization of performance.
HRD is the process of increasing knowledge will and capacities of all the people in a given
society. In the national context, HRD is a process by which the people in various groups are
helped to acquire new competence continuously so as to make them more and more self-reliant
and simultaneously develop a sense of pride in their country.
HRD is the process of increasing knowledge, skills, capabilities and positive work attitude and
values of all people working at all levels in a business undertaking. It is very narrow concept of
HRD which by itself is not an end but a means to achieve certain objectives and making
advancement of individual and organizational goals. HRD is a development-oriented planning
effort in the personnel area which is basically concerned with the development of human
resource in the organization for improving the existing capabilities and acquiring new
capabilities for achievement of the corporate and individual goals.
DEFINITIONS OF HRD
Nadler (1970) defined as a series of organized activities, conducted within a specified period
of time, and designed to produce behavioral change. Some of the common activities he
identified within HRD are training, education and development. He identified training as those
activities intended to improve performance on the job, education as those activities intended to
develop competencies not specific to any one job, and development is preparation to help the
employee move with the organization as it develops.
In a revised definition Nadler (1984) defined it as organized learning experiences in a definite
time period to increase the possibility of job performance and growth.
A recent review of the definition of HRD by McLean and Mc Lean (2001) provides a lot of
insights into field. The following are some of the highlights of this article:
While there have been many efforts to define HRD, no consensus seem to have
emerged
The US definition of HRD seems to have influenced the definitions many other
countries.
54

55. It appears that definitions of HRD may vary from one country to another, and the
national differences are a crucial factor in determining the way HRD professionals work
There appears to be difference in the perception and practice of HRD in local
companies as compared to Multinational companies.
In several countries HRD is not distinguished from HR but is seen systematically as a
part of HR.
Professional organizations and academic seem to contribute to the definition of HRD
The following is a sample of definition cited in McLean and McLean (2001):
CHINA: “A planned organized education and learning process provided by organizations to
improve employees‟ knowledge and skills as well as change their job attitudes and behaviors.
The process helps unleash the employees‟ expertise for the purpose of enhancing the individual
performance and achieving effective organizational functioning.” (The china Training center
for senior civil servants). McLean observes that in China there is no difference between HR,
HRD and personnel.
FRANCE : HRD covers all practices that contribute to enhance the contribution of people to
the organizational objectives: competence development, satisfaction to the human requirements
of organization development training, internal career paths etc. The term „development social‟
is often used synonymous with HRD.
GERMANY: There is no flied defined as HRD. Personnel specialist in Management schools
does some research.
JAPAN: The concept of HRD can be defined by three terms: Noryukyu kathatu (development
of individual abilities); Jinzai keisei (formulation of a mastery level of human resources
through the work system and training), and Jinzai ikusei (fostering of development of human
resources through management of human resource process. Individual development, career
development and organization development are the three major components of HRD in Japan.
KOREA: Most Korean staff treats it as equivalent to Training and Development. OD, CD and
T&D are included sometimes.
UNITED KINGDOM: HRD is relatively a new concept which has yet to become fully
established and accepted, whether within professional practice or as a focus of academic
inquiry. Key element include: Activities and processes which are intended to have impact on
organizational and processes which are intended to have impact on organizational and
individual learning; planned interventions in individual and organizational learning;
55

56. interventions that are intended to change organizational behavior; strategic, long term, cultural
and organizational changes.
SINGAPORE: In Singapore public agencies describe HRD as the activities related to
knowledge and skills development through organizational and community development
through education, training and re-training in a lifelong learning process for improving
productivity at the personal, organizational and community levels.
Development of Men
Higher productivity
Good Return on investment
As the Soul of Personnel Development
Its strong Superior Subordinate Relationship
To Cope with Changes
As a Pre-Condition of Economic Growth.
All business and industrial organizations are dynamics. In fact, liberalization, privatization and
globalization made the business, products/services. Organizational strength and like. The
changes invariably demand for development of human resources.
 Changes in economic policies: Almost all the government across the global have changed
their economic policies from communistic/socialistic pattern no capitalization pattern.
Liberalization, privatization and globalization posed threat to the weak firms created
opportunities large and small firms even India.
 Changing job requirements: Organizational dynamism brings changes and job design. The
change in job design brings changes in job description and job section. These changes
demand for the HRD.
 Organizational viability and transformation process: Organizational viabilities are
continuously influenced by the environment threats. If the organization does not accept itself
to the changing environment factor, it will lose its market share. If the organization desires
to adopt these changes first it has developed the human resources.
 Technological Advances: Organizations in order to survive and develop should adopt the
latest technology will not be complete until developed employees operate them. Employee
development is possible through human resources development. These are the days of
information technology and high-level production and survive technology. Therefore, HRD
is essential in new millennium.
56

57.  Organization Complexity: With the emergence of increased mechanization and
automation, manufacturing of multiple products rendering of survivals, organization become
complex. Management organizational complexity is possible through HRD.
 Human relation: Most of the organization intends to adopt human relation approach. This
in turns needs HRD.
CLIMATE
Perception about organization goals and about decisions that managers should take to achieve
these goals come not only from formal control systems but also through informal organizations.
Both the formal and informal structure combine to create what is called organizational climate.
The term climate is used to designate the quality of the internal environment which conditions
in turn the quality of cooperation, the development of the individual, the extent of member‟s
dedication or commitment to organizational purpose, and efficiency with which that purpose
becomes translated into results. Climate is the atmosphere in which individuals help, judge, and
reward, constrain and find out about each others. It influences moral and the attitudes of the
individual towards his work and his environment.
Hellriegel and Slocum (1974) define organization as a “ set off attributes which can be
perceived about a particular organization and/or its subsystems, and that may be induced in the
way that organization and/or its sub-system deal with their members and environment” this
definition implied that in the measurement of organizational climate.
Perceptual responses sought are primarily descriptive rather than evaluative.
The level of inclusive of the items, scales and constructs and macro rather than micro.
The units of analysis tend to be attributes of the organization or specific sub system rather
than individual and
The perceptions have potential behavioral consequences.
Schneider (1975) has prepared a working definition of climate:
“Climate perceptions are psychologically meaningful molar descriptions that people can
agree characterized a system‟s practices and procedures. By its practices and procedures a
system may create many climates. People perceived climates because the molar perceptions
function as frames of reference for the attainment of some congruity between behavior and the
57

58. system‟s practices and procedures however, if the climate is one which reward and support
individual differences, people in the same system will not behave similarly further, because
satisfaction is a personal evaluation of a system‟s practices and procedures, people in the
systems tend to agree less on their satisfaction than on their description of the system‟s
climate”. By its very nature, „climate‟ cannot be described correctly. Some alternative
characteristics are as follows:
 Focus on results versus focus on following work
 Individual accomplishment versus being a member of a team.
 Initiative and risk-taking versus not rocking the boat.
 Individual gains versus enhancement of organization objectives
 Tough mindedness versus dealing with people versus avoidance of unpleasant actions.
 The relative importance of participating management versus authoritarian.
HRD CLIMATE
DEFINITION:-
Harbison and Myers (1964), “the process of increasing the knowledge, the skills and the
capacities of all the people in a society. In economic terms, it could be described as the
accumulation of human capital and its effective investment in the development of an economy.
In political terms, HRD prepares people for adult participation in the political process,
particularly as citizens in a democracy. From the social and cultural points of view, the
development of human resources help people lead fuller and richer lives, less bound to
tradition. In short, the processes of HRD unlock the door to modernization.
Nadler and Nadler (1970), “defined HRD as,” a series of organized activities conducted
within a specified time and designed to produce behavioral change.”
Armstrong and Baron (2002) Human Resource Development (HRD) is concerned with the
provision of learning and development opportunities that support the achievement of business
strategies and improvement of organizational, team and individual performance.
Climate, this is an overall feeling that is conveyed by the physical layout, the way employees
interact and the way members of the organization conduct themselves with outside. (it is
provided by an organization).
58

59. Rao and Abrsham,(1986) HRD climate is an integral part of organizational climate. It can be
defined as perceptions the employee can have on the developmental environment of an
organization. The development climate will have the following characteristics
 A tendency at all level starting from top management to the lowest level to treat the people
as the most important resource.
 A perception that developing the competencies in the employees is the j0ob of every
manager/supervisor
 Faith in the capabilities of employees to change and acquire new competencies at any stage
of life.
 A tendency to be open in communications and discussions rather than being secretive (fairly
free expression of feelings.)
 Encouraging risk-taking and experimentation.
 Making efforts to help employees recognize their strengths and weakness through feedback.
 A general climate of trust.
 A tendency on the part of employees to be generally helpful to each other and collaborate
with each other.
 Team spirit
 Tendency to discourage stereotypes and favoritism.
 Supportive personal policies.
 Supportive HRD practices including performance appraisal, training, reward, management,
potential development, job-rotations, carrier planning, etc.
Organization climate contributes to the organization overall health and self renewing
capabilities which in turn, increase the enabling capabilities of individual, dyads, team, and the
entire organization.
DEVELOPMENT OF HRD CLIMATE
An HRD climate or culture is essential for developing human resources. The HRD climate can
be characterized as consisting of the following:
 Openness or freedom to express one‟s ideas and opinions;
 Collaboration attitudes or team spirit;
59

60.  Trust;
 Authenticity or correlation between words and action;
 Proaction or encouraging some degree of initiative and risk-taking by employees;
 Autonomy or certain degree of freedom of action for each individual; and
 An interest in confronting issues and solving them rather than hiding them.
Such climate can be developed through various HRD instruments mentioned earlier. Chief
executive should facilitate the development of an HRD climate and effectiveness of the HRD
instrument will help greatly the implementation of HRD systems. Short questionnaire like the
XLRI HRD Climate survey are available.
It may be worthwhile conducing such survey periodically (say once in a year or two) and
examine changes occurring in the HRD climate. Feedback from such surveys could be used to
plan out HRD activities for the subsequent years.
IMPORTANT OF HRD CLIMATE
The importance of HRD climate in an organization is as under-:
1.Environment factors of HR are prime influencing elements of change in HR strategy.
2.It gives professional time to anticipate opportunities in HR area and time to plan optional
responses to these opportunities.
3.It helps HR professionals to develop an early warning system to prevent threats emerging out
from HR scenario, or to develop strategies, which can turn a threat.
4.It forms a basis of aligning the organization strengths to the changes in the environment.
5.It enables the entry of the latest national/international HR developments.
SCOPE OF HRD CLIMATE
Motivator role of Manager & Supervisor: - To prepare Human resource Development Climate,
Manager and supervisor‟s responsibilities are more or we can say that they are the key players.
Manager and Supervisors have to help the employees to develop the competencies in the
60

61. employees, to help the employees at lower level they need to updated properly and they need to
share their expertise and experience with employees.
Faith upon employees: - in the process of developing HRD Climate employer should have
faith on its employee‟s capabilities. Means whatever amount is invested that should be based
on development of employees. Top management should trust the employees that after making
huge effort to develop employees, employees will work for the well being of organization and
for human being also.
Free expression of feelings:- Whatever Top management feels about employees they have to
express to employees and whatever employees think about top management it must be express
in other words we can say that there should not be anything hidden while communication
process. Clear communication process will help to establish the HRD climate.
Feedback: - Feedback should be taken regularly to know the drawbacks in system. This will
help to gain confidence in employees mind. Employee will trust on management and he can
express opinion freely which is very good for HRD climate. Feedback will help to remove the
weakness.
Helpful nature of employees: - Whenever we talk about 100% effort then we have to talk
about employee‟s effort too. Nature of employees should be helping for management and for
its colleagues. They should be always read to help to customers too.
Supportive personnel management: - Personnel policies of organization should motivate
employees to contribute more from their part. Top management‟s philosophy should be clear
towards Human Resource and its well being to encourage the employees.
Encouraging and risk taking experimentation: - Employees should be motivated by giving
them authority to take decision. This concept is risky but gradually it will bring expertise in
employees to handle similar situation in future. It will help to develop confidence in employees
mind. Organization can utilize and develop employees more by assigning risky task.
Discouraging stereotypes and favoritism: - Management need to avoid those practices which
lead to favoritism. Management and Managers need to give equal importance. Those people
who are performing good they need to appreciate and those who are not performing well they
need to be guided. Any kind of partial behavior should be avoided.
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62. Team spirit: - There must be feeling of belongingness among the employees, and also
willingness to work as a team.
ELEMENTS OF HRD CLIMATE
The elements of HRD climate can be grounded into three broad categories- general climate,
OCTAPAC culture and HRD mechanisms.
The general climate items deal with the importance given to human resources development in
general by the top management and line managers. The OCTAPAC items deal with extent to
which openness, Confrontation, Trust, Autonomy, Proactively, Authenticity and Collaboration
are valued, and promoted in the organization. The items dealing with HRD mechanism
measure the extent to which HRD mechanisms are implemented seriously. These are three
groups were taken with the following assumptions:
 A general supportive climate is important for HRD if it has to be implemented effectively.
Such supportive climate consists of not only top management, line management‟s commitment
but good personnel policies and positive attitudes towards development.
 Successful implementation of HRD involves an integrate look at HRD and efforts to use a
many HRD mechanisms as possible. These mechanisms as possible. These mechanisms
include: performance appraisal, potential appraisal, career planning, performance rewards,
feedback and counseling, training, employee welfare for quality work life, job satisfaction,
etc.
 OCTAPAS culture is essential for facilitating HRD. Openness is there when employees feel
free to discuss their ideas, activities and feelings with each other. Confrontation is bringing
out problems and issues into the open with a view to solving them rather than them for fear
of hurting or getting hurt. Trust is taking people at their face value and believing what they
say. Autonomy is giving freedom to let people work independently with responsibility.
Productivity is encouraging employees to take initiative and risk. Authenticity is the
tendency on the part of people to do what they say. Collaboration is to accept
interdependencies, to helpful to each other and work as teams.
The conventional connotation with which the team „climate‟ has been used in literature is
„organization Climate‟. The concept of climate with specific reference to HRD context, i.e.
HRD climate, has been recently introduced by Rao and Abraham (1986). Perhaps it could be
due to this reason that there is hardly any research work available in published literature.
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63. FACTORS AFFECTING HRD CLIMATE
The following factors may be considered as contributing to HRD Climate:
1.Top management style &philosophy:-A developmental style, a belief in the capability of
people, a participative approach, openness and receptivity to suggestions from the
subordinates are some of the dimensions that contribute to the creation of a positive HRD
climate.
2.Personnel Policies:-Personnel policies that show high concern for employees, that emphasis
equity and objectivity in appraisals, policies that emphasize sufficient resource allocation for
welfare and developmental activities, policies that emphasize a collaborative attitude and
trust among the people go a long way in creating the HRD climate.
3.HRD Instruments and Systems:-
A number of HRD instruments have been found to generate a good HRD climate. Particularly
open system of appraisal with emphasis of counseling, career development systems, informal
training mechanisms; potential development systems, etc. contribute to HRD climate.
4.Self-renewal mechanisms:-
Organizations that have built in self-renewal mechanisms are likely to generate a positive HRD
climate.
5. Attitude of a personal and HRD Staff:-
A helpful and supportive attitude on the part of HRD and personnel people plays a very vital
role in generating the HRD climate.
COMPONENTS OF HRD CLIMATE
The organizational climate consists of:-
1. Organizational Structure:-
An organization‟s structure is actually a „snapshot‟ of a work process, frozen in time so that it
can be viewed. The structure enables the people‟s energy to be focused towards process
achievement and goal achievement. Employee must have a clear definition of not only the
work structure but also the role used to organize the work. If the structure and the role is not
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64. clear, people will not know what the work process is, who responsible for what, whom to go
for help and decision, and who can assist in solving problems that may arise.
2. Organizational Culture:-
Organizational culture is the pattern of beliefs knowledge, attitudes, and custom that exists
within an organization. Organizational culture may result in part from senior management
beliefs. Or from the beliefs of employees. Organizational culture can be supportive or
unsupportive, positive or negative. It can be affect the ability or willingness of employees to
adapt or perform well within the organization.
The most effective work culture is one that supports the organizations HR strategies by
aligning behaviors, processes and methods with the desired results. It not just achieving results
but the methods through which they are achieved that are critical to long-term success. Before
any HR strategy is designed there must be a clear understanding of the organization, its current
values, its structure, its people as well as its goals and vision forth future.
3. HR Processors:-
The HR system of an organization should be comprehensive enough to take care of employees
from the time they join till the time they leave HR. Their demands must not be ignored, but a
feelings of belongingness be created. Process should be very clear and impartial, so that
employee‟s faith in organization. From the recruitment to retirement whole process should be
according to employee‟s expectation and ability of employer.
MEASURING HRD CLIMATE:
1.Economic condition:-
An organization‟s economic condition influences its culture in several ways. The more
prosperous an organization is the more it can afford to spend on research and the more it can
afford to risk and be adventurous.
2.Leadership Style:-
An organization leadership style plays a profound role in determining several aspects of its
culture. An authoritarian style may make the organization‟s culture characterized by high
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65. position structure, low individual autonomy, low reward orientation, low warmth and support
and so on, or it may be opposite, like goal directed leadership.
3.Managerial assumption about human nature:-
Every act on the part of the management that involves human being is predicated upon
assumptions, generalizations and hypotheses relating to human behavior. There are two
theories of behavior (Theory X and Theory Y).
4.Managerial values and ethos:-
The feeling of mangers about norms and values what is good and what is poor as
management practice. There are few dimensions on which it can be checked. They are self-
awareness, risk taking, participation, bureaucracy, equity, employee‟s security and growth.
5. Organization size:-
Small organizations are few levels of management; these are generally more amendable to
democratic and participative functioning than big organizations. More open communication
system in small organizations. Hence these organizations have a different type of climate
than what are in big organizations.
HRD PROCESS AND HRD CLIMATE VARIABLES
Human Resource Development mechanism or sub-system or instrument leads to development
of desired human resource development climate or process. Human Resource Development
cultures are an essential part of the organization climate. HRD culture in the organization.
In the words of T.V.Rao, “Human Resource Development climate is the perception of the
employee about the human resource development culture in the organization,” Human
Resource Development experts use the term “OCTAPACE” to express the important features
of human resource, development climate.
C T A P A C E
O
= = = = = = =
=
Confrontatio Trust Au Pro- Authentici Collaboratio Experimentati
Openness
n to actio ty n. on.
no n
m
y
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66. Experimentation Human resource development climate in an Organization is reflected by its
role, clarity, openness, trust, team work, proactive, orientation, planning of development of
every employee etc. HRD departments are a subsystem in instrument to initiate HRD culture
and achieve objectives of HRD.
Human resource development climate and processes are dependent on personnel policies, top
management styles, investments on HRD, top management, commitment, line managers,
interest, previous culture etc. to sum up the relationship between human resource developments
Mechanism and HRD processes and climate can be explained as under:
a) HRD mechanism is most useful instruments/interventions to develop a healthy HRD
climate.
b) HRD instruments are used to develop desired HRD processes. For instance performance and
potential appraisal help to Arsey and determine the competence required for job
performance. Review, discussion feedback, counseling session help in building trust and
better senior subordinate relations. Role analysis exercises result in role clarity in the
organization. Training and potential development exercise has proactive orientation. Job
enrichment is a deliverable of upgrading of risk and responsibility in work group. OD
exercise help to manage change and problems in the organization. It promotes openness,
effective communication; inter departmental collaboration in the organization. It aims at
providing the climate for growth and development.
c) HRD climate is dependent on human resource development mechanism as well as personnel
policies, top management styles.
d) HRD mechanism and personnel policies should be periodically reviewed to create develop
desired human resource development climate.
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67. 67

68. RESEARCH METHOLODY
TITLE
“A study on Human Resource Climate”of 66 top and middle level employees at Aarti
Industries Ltd, Vapi.
SIGNIFICANCE OF STUDY
A study on HRD climate is extremely important for the ultimate achievement of the business
goals. In the Indian context, type of organization influences the culture prevent in the
organization. It‟s an outcome of the favorable on unfavorable with which the HR practices
followed by the organization are perceived. This in turn affects employee‟s behavior and work
attitudes like organizational commitment.
HR means employees in organization, who work to increase the profit for organization.
Development, it is acquisition of capabilities that are needed to do the present job, or the future
expected job. The process of enhancing an employee‟s present and future effectiveness is
called development.
After analyzing Human resource and Development we can simply stated that, HRD is the
process of helping people to acquire competencies.
Climate, this is an overall feeling that is conveyed by the physical layout, the way employees
interact and the way members of the organization conduct themselves with outsiders.
In the era of liberalization, privatization and globalization climate of an organization has a
great impact on the functioning of organization and its development.
Due to staff competition from private and public sectors various problems have to be faced.
Hence, in such time a climate and its various parameters like innovations, developmental
climate, positive attitude, top management‟s commitment to HRD etc plays a major role both
for employees and for the organization.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:-
To Study the perception of employees regarding HRD climate in Aarti Industries Ltd.
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69. SECONDARY OBJECTIVE:-
To identify nature of work of employees in Aarti Industries Ltd.
To study existing working environment of employees in Aarti Industries Ltd.
To identify existing welfare measure and PMS of employees in Aarti Industries Ltd.
To study various training programs and career planning & development in Aarti Industries
Ltd.
To identify transparency among employees.
OPERATIONAL DEFINITION:-
HRD
Human resource development is a frame work for the expansion human capital within an
organization. Human Resource Development is a combination of Training and Education that
ensures that continual improvement and growth of both individual and the organization. HRD
is the structure that allows for individual development, potentially satisfying the organization‟s
goals. The development of the individual will benefit both the individual and the organization.
CLIMATE
The term climate is used to designate the quality of the internal environment which conditions
in turn the quality of cooperation, the development of the individual, the extent of member‟s
dedication or commitment to organizational purpose, and efficiency with which that purpose
becomes translated into results. Climate is the atmosphere in which individuals help, judge, and
reward, constrain and find out about each others. It influences moral and the attitudes of the
individual towards his work and his environment.
HRD CLIMATE
HRD Climate is an integral part of organization climate. It is the perception the employees can
have on the developmental environment of an organization. HRD climate is the human
environment in which the employees work in an organization. It is an outcome of the
favorableness or unfavorableness with which the HRD practices followed by the organization
are perceived. This in turn affects employee behavior and work attitude like organizational
commitment.
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70. RESEARCH DESIGN
The research design for this study is Descriptive and Explorative nature.
DESCRIPTIVE RESEARCH
The main goal of this type of research is to describe the data and characteristics about what is
being studied. The idea behind this type of research is to study frequencies, averages, to portray
accurately the characteristics of particular individual, situation or group, and other statistical
calculations. It is quantitative and uses surveys and panels and also the use of probability
sampling. The study will describe about the various factors which affects the organization to
retain talented workforce in Aarti Industries Ltd, Vapi.
EXPLORATIVE RESEARCH
Exploratory research is a type of research conducted for a problem that has not been clearly
defined. It helps determine the best research design, data collection method and selection of
subjects. It should draw definitive conclusions only with extreme caution. Exploratory research
often relies on secondary research such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with consumers, employees, management
or competitors, and more formal approaches through in-depth interviews, focus groups,
projective methods, case studies.
UNIVERSE:
The universe for the study includes all top and middle level employees of Aarti Industries Ltd.
SAMPLE AND SAMPLING:
SAMPLE: Sample size consist of 66 top and middle level employees working at Aarti
Industries Ltd.
SAMPLING METHOD: Simple random sampling method was used to select the respondents
from different departments of the industry.
VARIABLES:
Dependent variables:
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71. Dependent variable includes nature of work, working environment, welfare measure,
performance management system, training, career planning & development and transparency
organization.
Independent variables:
Independent variable includes all personal information like age, marital status, monthly
income, educational qualification, and experience.
TOOLS OF DATA COLLECTION:
The tool used for data collection was structured questionnaire prepared by researcher. It
consists of few open ended questions and close ended questions. The close ended questions
were to be accessed on a 5 point scale by encircling the numbers which the respondents
consider most appropriate.
(1-Strongly agree, 2-Agree, 3-Neutral, 4-Strongly Disagree, 5-Disagree)
REFERANCE PERIOD:
The data was collected in the Month of June-July 2012.
LIMITATIONS OF THE STUDY
1) The first and foremost limitations are regarding the source of information. The information
contained has been obtained from the sources believed to be reliable and good in faith, but
which may not verified independently.
2) Since the sample size was limited and at the same time HRD climate being a broad topic, the
size could not suffice the needs of the study.
3) The time constrain was one of the factors to be kept in mind while carrying out the study.
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72. 72

73. REVIEW OF LITERATURE
Lyon & Lvancevich (1974) in their study of a Hospital have found that different climate
dimensions influence facts of individual job satisfaction for nurses and administrators.
Jain, Singhal & Singh (1996) studied on HRD Climate in Indian Industry, in two public sector
organization i.e.BHEL and NFL and concluded that the HRD climate is mainly a function of
the effectiveness variables including individual efficiency, organizational efficiency and
productivity and the HRD variables including management policy on HRD, organization
development, role analysis and training.
Ishwar Dayal (1996) carried out a study of HRD climate in Indian Oil Corporation. It was
found that HRD climate was positive for learning.
Gani &Rainyee(1996) conducted study in HRD Climate in Large Public Sector Organization
in Kashmir and concluded that climate existing in the organization for employees development
was picking up and it was further observed that compared to managerial personnel, workers
were less sanguine.
Krishna & Rao (1997) carried out a comprehensive empirical study in BHEL, Hyderabad and
found that HRD climate in the organization encouraged middle and seniors managers to
experiment with new methods and try out creative ideas.
Venkateswaran (1997) studied on human Resource development Climate, made a study based
on the responses of 132 executives of a large PSU and concludes that early identification of
human resources potential development. This can be achieved only when a conducive HRD
Climate prevails. The study found the existence of favorable HRD Climate in the organization.
Varimax (1998) study focused on the relevance of congenial and competitive HRD Climate
for public sector commercial banks in India in the light of numerous challenges arising from
multinational and new generation private sector banks on account of liberalization and
globalization of the Indian economy. The study was confined to 5 selected public sector
commercial banks within Indian context for analyzing the HRD climate dimensions. To assess
the HRD climate, a survey instrument of 40 variables was used. The sample size was 1427
which included senior HRD managers, branch managers, clerks and other supporting staff
drawn by simple random sampling. Respondents were asked to rate these 40 variables which
are rooted on seven point Likert scale of 1-7. The data was subjected to PCA (Principal
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