REPORT ON HUTCH

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HUTCH  Report Transcript

Indian Telecom Industry: Path to Growth ? The cellular phone industry is one of India’s rapidly growing industries. Its average per annum growth rate has been a phenomenal 85%. By the end of 2002, the Indian cellular phone industry had over 10 million subscribers. The industry has under gone a number of changes over the years. The national telecom policy 1999 was an important landmark in the development of the cellular telecom industry in India: the tariff rationalization and policy regulation introduced in the policy helped the industry go at the place it did. The years 2001 and 2002 saw an increase in level of competition in the industry with more operators being given license and fixed line providers also entering the mobile market. In 2003, Telecom Regulatory Authority of India (TRAI) announced regulation of interconnect user charges to resolve conflicts between cellular operators and fixed line operators. Economic theory suggests that there is a positive correlation between infrastructure and economic development.

Telecommunication is one of the most important types of infrastructure. Communication is said to be the life-blood of economic activity. Systems of communication assume critical importance when globalization and contraction of geographical distance have become the order of the day. International studies indicate that for every one percent increase in the teledensity (penetration rate of telecommunication) of a country, there is a corresponding increase of three percent in the gross domestic product of the country. The Genesis of the Industry The govt. of India recognizes the importance of the telecommunications (telecom) sector and has given it due importance.

The telecom sector is broadly divided into two types of service providers- basic telephony and cellular telephony. 1. Basic Services: the major players providing basic services are BSNL, the Tata Teleservices and reliance, which use the code division multiple access (CDMA) standard, which provides limited mobility. Using CDMA, calls can be made to and received from certain fixed areas. 2. Cellular Services: Operators providing cellular services use the global system for mobile communication (GSM) standard: using this, call can be made to and received from any place. The major players in this segment are Bharti, Hutchison BPL and Idea. The telecom sector requires very heavy investment (The National Telecom policy-1994 estimated a resource gap of Rs. 230billion for the telecom targets of the eight five year plan, 1992-1997 to be met).

To meet the resource requirement and achieve the nation’s telecom targets, the government decided to invite the participation of private players, and the telecom sector was opened up in 1992. (The early 1990s was a period of economic liberalization in India. Liberalization was initiated on a large scale through the industrial policy Statement of 1991). The policy abolished the regime of public sector supremacy and paved the way for private participation in the economy). Cellular mobile services were one of the first areas to be opened up for private participation. Initially to easy operations, the country was divided into four metropolitan cities and 19 circles, which were roughly analogous with the geographic boundaries of the states of India. Cellular licenses were given to the private players, first in the four metropolitan cities in 1994 and then for the 19 other telecom circles in 1995. The first metro cellular network started operating in Kolkata in August 1995. The Usefulness of Telecom India has a huge disparity of income among its people. One reason for this is the lack of education. In the days when telecom was a state monopoly, the government introduced education classes through the state run TV channel. Even now, these classes are watched by huge numbers of students who cannot afford to go to regular schools/colleges. An estimated 3.5 million students are enrolled in various distance education universities throughout the country. Some foreign universities have seen this potential market and set up programs. Computer education is a route to generating more employment and prosperity.

Due to the lack of proper telecom infrastructure in the interiors of the country, there is general lack of awareness of global developments. The spread of telecommunications will help tap this potential market and the sheer magnitude of the market will continue to beckon global players for years to come. Entrance of private telecom operators Various reports examines the emergency of innovation and value creation for enhancing customer’s experience, as a result of increasing competition in the Indian telecom industry during the late 1990s and early 2000s.

the report provides a detailed account of the evolution of the Indian telecom industry. It traces various developments in the industry before, during and after the liberalization of the Indian telecom sector. It also provides information about the increasing popularity of cellular services, which led to the emergence of several private telecom operators like BhartiTele Ventures, Hutchison Essar Telecom India, Idea Cellular Ltd.,

Reliance Communication and Tata Teleservices, etc. Due to the huge market potential even public sector undertakings like BSNL and MTNL have also begun offering cellular services apart from basic wire line services in February 2004. Hutchison Essar Telecom India Limited (Hutch) India’s leading GSM service provider entered the Pre paid and Post paid mobile services segment by offering subscription schemes that allowed customers to make use of a digital mobile phone service at an affordable price. More ………

CELLULAR OPERATORS Bharti BPL Tata Teleservices Idea Cellular Reliance Communication BSNL MTNL BRIEF HISTORY OF THE ORGANIZATION Hutchison Essar established its presence in India in 1994 by acquiring the cellular license for Mumbai. It now has operations in 16 circles accounting for 70% of India's mobile customer base. With over 27.7 million customers, it is one of India's most reputed telecom companies. Hutchison Essar, under the Hutch brand, over the years, has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country', and the 'Most Creative and Most Effective Advertiser of the Year'. Hutchison Essar is now part of Vodafone - the world's leading international mobile communications company. Vodafone now has operations in 26 countries across 5 continents and 36 partner networks with about 225 million proportionate customers worldwide. Vodafone has tied up with Essar as its principal joint venture partner for the Indian operation.

The Essar Group is one of India's largest corporate houses with interests spanning the manufacturing and service sectors like Steel, Oil & Gas, Power, Telecom & BPO, Shipping & Logistics and Engineering & Constructions. The Group has an asset base of over Rs.20 billion (US$ 4.4.billion) and employs over 4000 people. *Figures from Cellular Operators Association of India, Apr 30,, 2007. COMPANY’S QUALITY POLICY “QUALITY AND CUSTOMER SATISFACTION IS OUR BASIC BUSINESS PRINCIPLE”. Hutchison Essar is committed to strive for the leadership in its product market by way of continuous improvement in the quality of its products and services and meeting the customer needs in time and every time at competitive price. This shall be achieved through continuous up gradation of technology and process improvement by involving all the employees, vendor, dealer and customers. RESEARCH OBJECTIVE Now a days every course is associated with some sort of practical approaches such as case study, seminar, industrial visits, summer trainings etc. Since I am pursuing MBA (Master of Business Administration), it is very essential to have an application of what we are studying in the lecture rooms. The course itself consists of different management subjects. I am getting the theoretical aspects of management discipline i.e.

HRM (Human Resource Management) but it is enough for management student’s science since in the future they have to work in the fields or in the organization. In the same context our course curriculum has organized summer training, so that we could know in Hutchison Essar in CP & HRD as a trainee. So to fulfill my academic objective and my esteem need, I did summer training in Hutchison Essar. Following are some important objective that I wanted to accomplish in Hutchison Essar. • To understand the performance appraisal adopted by Hutchison Essar. • To understand the type of human resource practices in Hutchison Essar. • To locate the main factor which can affect the performance appraisal policies and can reduce the goodwill / reputation of organization? • To study the measures adopted for judging the effectiveness of performance appraisal policies. • To study what measures are undertaken to remove the limitation of performance appraisal policies of Hutchison Essar. RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem. It may understand as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research to know not only the research methods / techniques but also the methodology. Methodology adopted for conducting the survey: The Opinion Survey, Scheduling Method, Interviews – Structured and Unstructured Interviews, Questionnaire has been used to analyze and assess the recruitment and selection policies of Hutchison Essar, Jaipur after consulting different books, literature and report on this topic. The scheduling has been done among the employee of all levels executive and non- executive both. An exploratory research has been carried out to study the performance of employees. To meet the researches format, to collect information from the respondents was made and the information were collected through secondary data. A) Prescribed Reading To get the performance of the employees,

the research was involved in important discussion with the relevant people. B) Data collection techniques Primary Data & Secondary Data. DATA COLLECTION While deciding about the method of data collection to be used for the study the researcher should keep in mind two techniques of Data Collection: ? Primary Data, ? Secondary Data PRIMARY DATA: “Primary data may be described as those data that have been observed and recorded by the researchers for the first time to their knowledge.” There are several methods of collecting primary data. Important ones are: I. Observation method, II. Interview method, III. Questionnaires IV. Schedules, and V. Other methods etc. SECONDARY DATA: “Secondary data are statistics not gathered for the immediate study at hand but for some other purposes.” The secondary data can be collected by internal and external secondary data like data gathered from the files and documents of the company and business periodicals published for monthly,

quarterly or annually. DATA ANALYSIS: The data transcripts were analyzed in order to identify skills or themes evident in the data. A coding system was developed based on this analysis, to identify supportive and unsupportive data. This step of research methodology starts with the coding of collected data where the categories of data are transformed into symbols. Then editing is done in order to improve the quality of coded data. With coding the stage is ready for the tabulation. Tabulation is the part where the classified data is put in the form of tables so that the data displays, which provided a frequency of responses and the nuances apparent in the data. Individuals were not identified in the transcripts.

INTERPRETATION There are some guidelines for filling Confidential Report Form: 1. Your appraisal should be based on how well the employee has achieved the result expected for this period under assessment, please note, you are appraising the employee’s performance (result achieved or not achieved and not the person). 2. For indicating your rating on each factor, please tick the appropriate. 3. Guard against any tendency to over - rate and under – rate this is unfair both to the employee reported upon as well as to his colleagues. 4. It will be filled in by an officer to whom the employee directly report (officer here means executive). 5. An efforts should be made to rate all the factors if a particular factor is not applicable in case any employee; it should be mentioned as “Not Applicable”. 6. Before recording their assessment, the appraiser must read carefully the factor definition and grade description given their under. 7. In case, evaluation of an employee and particular factor is considered to be either extreme, i.e.

“exceptional / outstanding” or “poor” it should be justified by giving appropriate date for each factor separately. 8. Each factor should be rated independently a higher or low grading in some factor should not influence the assessment of the other factor. One useful method to avoid this is to assess all employee at a time in respect of all the assessing officer while evaluating a factor picks on one employee at a time in respect off all the assessing officer while evaluating a factor picks on one employee with in the group whose performance in that factor is taken to be average. ROLE OF DEPARTMENT HEAD IN FILLING UP APPRAISAL FORM 1. The role of head division / project is to ensure that the employees has been assessed impartially accurately and in all fairness to the appraise, his colleagues as well as the organization to do so,

he should carefully go through the assessment of the reporting officer in respect of any factor, he should discuss the same with the latter and record it , if no mutually agreed assessment is possible. 2. The head of division / project should also ensure that this reporting officer is neither unduly strict not unduly lenient. 3. All the report must go through and carry the signature of the head of division / project signifying his assent / dissent of the rating given by the reporting officer. “It is emphasized once again that as his assessment will become an important part of the employee service record, the reporting officer should give it as much come and attention as he expected when he himself is assessed.” FORMS USED FOR PERFORMANCE APPRAISAL IN HUTCHISON ESSAR Shown in Annexure: 1. Forms used for executive :- 2. Forms used for non technical staff :- 3. Forms used for officers/ executives/ Agents :-