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Big bazzar

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Big bazzar

  1. 1. DECLARATION This is to declare that our team under the guidance ofDr. Shekhar has completed the report work.This project is solely the result of our combined efforts and has notbeen submitted by anyone earlier either to this University/Institutionor to any other University/Institution for any purpose. The dataprovided here are from some primary as well as some secondarysources.Date: Sakshi Jain (09181) Samta Gupta(09184) Saurabh Srivastava(09189) Shashi Kant Kumar(09195) Shivi Bindra(09198) Shradha Suman(09202) Shweta Rai(09205) Sonu Sharma(09213) Vaibhav Jain(09230) Ziauddin(09238) Priyanka Sharma(09240) 1
  2. 2. CERTIFICATE TO WHOMSOEVER IT MAY CONCERNThis is to certify that students with Roll Nos.BM-09181, BM-09184, BM-09189, BM-09195, BM-09198, BM-09202, BM-09205, BM-09213, BM-09230, BM-09238, BM-09240of PGDM 2009-2011 batch, I.M.S Ghaziabad, has done their projectheaded “HUMAN RESOURCE DEVELOPMENT OFPANTALOON’S BIG BAZAAR” under my supervision andguidance.During their project they were found to be very sincere and Attentiveto small details whatsoever was told to them.I wish them good luck and success in their future.Professor:Dr. Shekher(I.M.S Ghaziabad) 2
  3. 3. ACKNOWLEDGEMENT“GOING IS GETTING TOUGH, CURRENT IS TORRENTIAL.SUCCESS IS NOT AFAR, JUST YOUR POTENTIAL”.Following the word of this quote the project is being made.This report bears the imprint of many people and without theresupport it would not have existed.We acknowledge our deepest thanks to our Project guide Professor DrShekher for all their care and encouraging words and givingsuggestion at the crucial stages. 3
  4. 4. INDEXS.NO. TOPIC PAGE 1. Introduction 5 2. Industry Profile 7 3. Company Profile 10 4. Management Functions 12 5. Human Resource 15 Management 6. People Management 19 System 7. HRD of Big Bazaar 21 8. Employees Motivation 29 9. Work Culture 33 10. Customer Satisfaction 35 11. SWOT Analysis 36 12. Conclusion 38 13. Bibliography 39 INTRODUCTION 4
  5. 5. Future Group is India’s leading business group that caters to the entire Indian consumption space. Led by Mr. Kishore Biyani, the Future Group operates through six verticals: Retail, Capital, Brands, Space, Media and Logistics:• Future Retail (encompassing all lines of retail business),• Future Capital (financial products and services),• Future Brands (all brands owned or managed by group companies),• Future Space (management of retail real estate),• Future Logistics (management of supply chain and distribution) and• Future Media (development and management of retail media. The group’s flagship company, Pantaloon Retail (India) Limited operates over 5 million square feet through 400 stores in 40 cities. Some of its leading retail formats include, Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, EZone, Depot, Health & Beauty Malls and online retail format, futurebazaar.com. Future Group’s vision is to, “deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.” The group considers ‘Indian-ness’ as a core value and its corporate credo is - Rewrite rules, Retain values. PANTALOON RETAIL (INDIA) LIMITED (Incorporated in the Republic of India with limited liability under the Companies Act, 1956) 5
  6. 6. From its beginning in 1987, they have today evolved as one of theleading retailer and are among the pioneers in setting up a nation-wide chain of large format stores in India. They believe that thevarious initiatives taken by them have played a key role in enhancingthe standards of retail in the country. They believe their focus oncustomers supported by systems and processes and a committed workforce are the key factors that have contributed to our success and willhelp us scale up as we embark on our strategic growth plan.Pantaloons is the first organized departmental store format targetingthe Indian middle class and upper class customers across age andgender.BIG BAZAR 6
  7. 7. Big Bazaar is a chain of department stores in India currentlywith 100 outlets. It is owned by Pantaloon Retail India Ltd, FutureGroup. It works on the same economy model as Wal-Mart and hasbeen successful in many Indian cities and small towns. The idea waspioneered by entrepreneur Mr. Kishore Biyani, the CEO of FutureGroup. Currently Big Bazaar stores are located only in India. It is thefastest growing chain of department stores and aims at having 350stores by 2010.Big Bazaar is the destination where you get products available atprices lower than the MRP, setting a new level of standard in price,convenience and quality. INDUSTRY PROFILE 7
  8. 8. Retail is India’s largest industry, accounting for over 10 percent ofthe country’s GDP and around 8 percent of the employment. Retailindustry in India is at the crossroads. It has emerged as one of themost dynamic and fast paced industries with several players enteringthe market. But because of the heavy initial investments required,break even is difficult to achieve and many of these playershave not tasted success so far. However the future is promising;the market is growing, government policies are becoming morefavorable and emerging technologies are facilitating operations.India has one of the highest savings rate in the worldwith Rs 29 of every Rs 100 of its national income beingsaved. These extremities leaves a lot of opportunity formarketers, both Indian and international. One of thekey growth factors has been the shift to service sector,which accounts for 50% of the total GDP. Led byservices such as IT, telecommunication, healthcare andretailing, the services sector is likely to play an evenmore important role in the Indian economy. 8
  9. 9. India has a large number of retail enterprises. Withclose to 12 million retail outlets India has one of thehighest retail densities in the world. In terms of thestructure, the industry is fragmented andpredominantly consists of independent, owner-managed shops.Some Key Facts:•Retail is India’s largest industry accounting for over 10 percent ofthe country’s GDP and around 8 percent of the employment.•The market size of Indian retail industry is about US $312billion. 9
  10. 10. COMPANY PROFILE Pantaloon Retail (India) Limited is India’s leading retailerthat operates multiple retail formats in both the value andlifestyle segment of the Indian consumer market. Headquartered inMumbai, the company operates over 12 million square feet ofretail space, has over 1000 stores across 71 cities in India andemploys over 35,000 people. The company’s leading formatsinclude Pantaloons, a chain of fashion outlets, Big Bazaar, auniquely Indian hypermarket chain, Food Bazaar, a supermarketchain, blends the look, touch and feel of Indian bazaars with aspectsof modern retail like choice, convenience and quality and Central, achain of seamless destination malls. Some of its other formatsinclude Depot, Shoe Factory, Brand Factory, Blue Sky, FashionStation, Mobile Bazaar and Star Sitara (Beauty clinic). Thecompany also operates an online portal, Futurebazaar.com. Asubsidiary company, Home Solutions Retail (India) Limited,operates Home Town, a large-format home solutions store,selling home furniture products and E-Zone focused on cateringto the consumer electronics segment. Pantaloon Retail was awardedthe ‘International Retailer’ of the Year 2007, by the US-basedNational Retail Federation, the largest retail trade association andthe ‘Emerging Market Retailer’ of the Year 2007 at the World 10
  11. 11. Retail Congress in Barcelona.Pantaloon Retail is the flagship company of Future Group, a businessgroup catering to the entire Indian consumption space. The group’ssubsidiary companies include, Home Solutions Retail India Ltd,Pantaloon Industries Ltd, Galaxy Entertainment and Indus LeagueClothing. 11
  12. 12. MANAGEMENT FUNCTIONIt was described by Henry Fayol in the year 1800 when he was theCEO of a large mining company.Fayol has noted managers at al levels operating in a for profit or notfor profit organization, must perform each of the functions of :PlanningThe organization’s long term goal is to capture a major pie in themarket share and earn good profits. For this purpose the organizationhas:• A Procurement plan where it procures its finished goods(apparels) from various brand manufacturers.• A outlet site selection plan (to open at convenient and profitablelocation)• A marketing plan where (Collect apparels, footwear etc fromcompanies and allocate store space etc., Advertising.)• A finance plan on revenues and expenditure and how manystores to open, how many brands to keep. Reducing inventory levels. 12
  13. 13. Directing• New products/ designs to be introduced (Quantity-wise andvariety-wise).• Identification of proper stores location• Continuous supply of inventories from suppliers (Preparation ofprocurement schedule)• Inventory planning, monitoring, and tracking of work inprocess.Coordinate and Controls• Inventory control to keep the cost at optimum level. MonitoringWIP• Orders placed to the suppliers for inventories.• Volumes of the orders from the customers that the company canhandle• Organized reports at all levels.• Competitors 13
  14. 14. APPLYING MINTZBERG’S MODELOrganization Pyramid Where to Sales Personne establish Profitabilit Projecti l productio y on Planning n unit projection per store Strategic Level Inventor Contracting & y Relocating Control control Tactical Level Sales Establish region linkages with suppliers for Raw Analysi Material Establishi Employee Employee How to Manage Figure 1: Organizational Pyramid ng market produce Stores linkages Recordkeepi Productio Marketin Operation Human n g s Resourc 14
  15. 15. WHAT IS HUMAN RESOURCE MANAGEMENT?The effective use of people to achieve both organizational andindividual goals. It is actually effective recruitment, selection,development, compensation, and utilization of human resources byorganizations.Before few yearsH.R manager was only black box. Their role was more closely alignedwith personnel and administration functions. • Potent • Recruiting • Hiring • Training • Organization Development • CommunicationNew H R Role • Coaching • Policy Recommendation 15
  16. 16. • Salary and Benefits • Team Building • Employee Relations • Leadership HRM HAS INCREASED IN IMPORTANCE SINCE THE 1980’s. WHY? • Globalization • Government regulation • Stronger knowledge/research base • Changing role for labor unionsChallenge of matching worker expectations with competitivedemands.Human resources is an increasingly broadening term with which anorganization, or other human system describes the combination oftraditionally administrative personnel functions with acquisition andapplication of skills, knowledge and experience, Employee Relationsand resource planning at various levels. The field draws uponconcepts developed in Industrial/Organizational Psychologyand System Theory. Human resources has at least two related 16
  17. 17. interpretations depending on context. The original usage derivesfrom political economy and economics, where it was traditionallycalled labor, one of four factors of production although thisperspective is changing as a function of new and ongoing researchinto more strategic approaches at national levels. This first usage isused more in terms of human resources development, and can gobeyond just organizations to the level of nations . The more traditionalusage within corporations and businesses refers to the individualswithin a firm or agency, and to the portion of the organization thatdeals with hiring, firing, training, and other personnel issues, typicallyreferred to as `human resources management.Key functionsHuman resource management serves these key functions:1. Recruitment & Selection2. Training and Development (People or Organization)3. Performance Evaluation and Management4. Promotions5. Redundancy6. Industrial and Employee Relations7. Record keeping of all personal data. 17
  18. 18. 8. Compensation, pensions, bonuses etc in liaison with Payroll9. Confidential advice to internal customers in relation toproblems at work10. Career development In a business where individuals comprise the principal asset, thestructure of the people pyramid influences the quality of knowledgecaptured, the speed with which decisions are made and the morale ofthe organization. Human Resource is one of the critical supportfunctions and forms another key element of the corporate backbone.We have 7,379 employees as on September 30, 2005. We are a veryyoung and energetic organization with average employee age being30 years. We believe that service is our core philosophy and people are ourmost important resources. Our attempt has always been to create anenvironment where our employees feel pride of being called‘Pantaloonians’.Our Human Resource philosophy is driven through our ‘The BIGBAZAAR People Management System’. 18
  19. 19. BIG BAZAAR People Management System BIG BAZAAR People management system is built on 5 pillarsof people based growth:a. Culture Buildingb. Performance Management through Balanced ScoreCardc. People Processesd. Management Processese. Leadership ExcellenceOrganisation Structure Our organization is headed by our Managing Director. Wefollow an inverse pyramid structure; as a result decisions are takenclosest to the point of customer action. Sales executive areencouraged to think customer first. They are empowered to run theirrespective departments like ‘small siness owners’. 19
  20. 20. Inverse Pyramid Structure QuickTimeª and a QuickTimeª and a decompressor decompressor are needed to see this picture.are needed to see this picture. HUMAN RESOURCE DEPARTMENT OF BIG BAZAAR 20
  21. 21. The HR department of Big Bazaar is very dynamic. Employeesare the biggest strength and asset of any organization and the HR deptrealises this very well.This is very evident from the way the HR department handlesall its employees. They take utmost care to select, train, motivate andretain all the employees. They have continuous developmentalprogrammes for all the employees. Currently Big BazaarBanashankri is employing 220 full time and 60 part time employees.There are two shifts for the employees. The first shift employeesarrive at 10AM in the morning and leave at 7.30 in theevening, while the second shift employees report at 12.30 in theafternoon and leave at the time of Store closing (10pm).For any hr activity one of the major activity is recruitment of theemployee. the following are the main sources through which bigbazaar recruit it employees.Sources of Recruitmenta) Consultancy Services: For top level management,employees are recruited through private consultants. They are 21
  22. 22. usually appointed as Departmental Managers.b) Walk-ins: This is the main source through which Big Bazaarrecruits its employees. People seeking job usually themselvesapproach the HR department for job vacancy. Employees usuallyselected from this source are appointed at the entry level as teammembers.c) Employee Referrals: This is the other main source through whichemployees are selected. Candidates who have given their previousemployer as referrals are first interviewed and from theirprevious employer, opinion is taken about their behaviour andperformance in the job. If they receive a positive opinion from theirprevious employer they are selected.d) Campus Recruitment: Young people bring new ideas andfresh enthusiasm. Therefore Big Bazaar visits some of the reputededucational institutions to hire some of the most talented andpromising students as its employees.Selection ProcedureThefollowing is the selection procedure that the HR department practicesto hire its employees.i) Interview: For entry level jobs, the candidates are interviewed by aHR person. They are asked a few basis questions about theireducation, previous work experience if any, languages known etc.This is done to evaluate the candidate’s ability to communicatefreely and also other skills. 22
  23. 23. ii) Psychometric Tests: For higher and top level jobs, candidates areasked to answer a few questions which basically test their sharpness,analytical ability, ability to handle stress, presence of mind etc. Thisis done as Managers are required to work under stress all thetime and still maintain a cool head to make some vital decisions.iii) Group Discussion: In campus recruitment students are involvedin a Group Discussion, where they will be given a topic on whichthe group has to deliberate, discuss and arrive at a solution or adecision which is accepted by the whole group.Along with the G Dthey are also given a written aptitude test.Finally a formal interview will be conducted to assess the overallskills of the student.Induction New employees selected will be given a 13 day inductionand training program. They will be given information about thecompany’s business, different departments etc. They will beinformed of their roles, duties and responsibilities. They will alsobe informed about the HR policies and rules of the company. 23
  24. 24. The new employees will be on probation for a period of 6months. After this period the HR period along with the departmentmanager will review the performance of the employee. If theemployee’s performance is good and encouraging, the employee’sservices will be confirmed.Compensation & Rewards The employees are rewarded suitably with attractive paypackages.The salary of an employee includes basic pay. HRA, specialallowance, PF,ESI, Mediclaim etc.Annual bonus will be given at the time of Diwali.The employees and their dependents are also entitled for medicaltreatment in recognised hospitals with cashless hospitalisation withwhom the company has tie-ups.If a hospital is not recognised, the amount spent by the employee willbe reimbursed.Along with these all the employees are given a card known as‘Employee Discount card’ (EDC) through which they can buy anyproduct at Big Bazaar at a special discount of 20-30 %. 24
  25. 25. Leaves and other rulesAn employee during his probationary period is entitled for 7 days ofleave. A confirmed employee is entitled for 30 days of leave in a year.There is only one type of leave the employees can take which isknown as All Purpose Leave (APL).All the employees will be given identity cards which they have towear and also swipe while at the time of entering and leaving theStore.Performance Appraisal The HR department conducts performance appraisal of all theemployees annually in the month of April.Based on their performance increments will be given in their pay. Inaddition to this if an employee achieves or exceeds the target given toalong with their team members will be provided with attractive cashand other incentives.Training & DevelopmentFuture group has its own training division for all its employees,known as ‘Future Learning & Development Limited’ (FLDL). All theemployees are given training for 20 days in a year spread over 25
  26. 26. different periods.‘Gurukul’ which is a part of FLDL gives training to all the employeeson various skills like team work, dedication discipline improvingcustomer service etc to make them more knowledgeable andproductive.Retention StrategyWe strive to foster a feeling of well-being in ouremployees through care and respect, we have severalstructured processes including employee mentoringand grievance management programmes which areintended to facilitate a friendly and cohesiveorganisation culture. Off-site activities are encouragedto improve inter-personal relationship. We alsoacknowledge the efforts exerted by our employees byorganisation an annual celebration called ‘PantaloonDay’ where we recognize employees who have shownexceptional talent, sincerity and dedication. We haveimplemented an employee suggesstion programmecalled ‘Prerna’ wherein the employee can give their 26
  27. 27. suggestions. Every quarter the best suggesstionreceived per zone per format is awarded prize called“Golden Cap”.Internal controls and Risk Management The company uses the services of Ernst & Young forprocess audit and risk management and the scope oftheir work covers all the company’s formats i.e.Pantaloons, Big Bazaar, Food Bazaar and FactoryOutlet.The objectives are to:• Gain an understanding of the various BusinessProcesses• Identify the strengths and weaknesses in the existingsystems and procedures.• Review use of technology in the function• Identify key business process risks and review theadequacy of the controls and mitigate them.• Test the effectiveness of controls the most significant risks and provide recommendations to improve controls. 27
  28. 28. • Identify potential areas for improving processefficiency• Broadly develop on improvement portfolio and raisethe level of awareness of how business is impacted byinadequately controlled risks inherent in the businessprocess. Internal audit of our each store is also undertakenby an independent audit firm on monthly/quarterlybasis. WHAT MOTIVATES EMPLOYEES? The main issue that every manager talks about relating to hisemployee is, that he might have better-motivated employee. In bigbazaar the scenario is different. Here employees are motivated 28
  29. 29. through various ways and some of the ways are discussed below. • Feeling “in” on things. • Good wages. • Good working conditions • Job security • Full appreciation of work that is done • Tactful disciplining • Employer loyalty to employees • Interesting work • Promotion and growth in the organization The above-discussed methods can be related to various motivationtheories and the implication of such theory can be found in thesuccess of the ways that big bazaar use. Some of the theories ofmotivation are Maslow’s need hierarchy theory, Bureaucracy and TwoFactor theory.Maslow’s says that human beings are motivated to satisfy their needs.These needs can be classified under various heads such as : • Physiological needs, Safety needs. Love needs, Ego needs, and 29
  30. 30. Self-actualization needs. • Physiological needs - basic needs like hunger and thirst. • Safety needs - security of all kinds. • Love needs - need to relate closely to others. • Ego needs - need for status and recognition. • Self-actualization needs - relate to achieving one’s potential.The motivation activities which can be classified within the maslow’stheory are:-Good wages.Job security.Appreciation of the employee for the work done.Beside the maslow’s theory the motivation activities can be classifiedon the basis of Two Factor model and the bureaucracy theory.Two factor theory is based on two factors:1. Those factors that led to extreme dissatisfaction with the jobs.2. Those factors that led to extreme satisfaction with the job.Factors giving rise to satisfaction he called motivators. Those giving 30
  31. 31. rise to dissatisfaction he called hygiene factors.Eliminating the causes of dissatisfaction (through hygiene factors)would not result in a state of satisfaction. Satisfaction (andmotivation) would occur only as a result of the use of motivators.In the motivating activities of big bazaar the good working conditionis the factor that lead to extreme satisfaction. The employee loyaltytoward the employee is related to the bureaucracy relation and theinteresting work is related to the behavioral theory. WHAT MOTIVATES EMPLOYEES? 31
  32. 32. RankFeeling “in” on things 8Good wages 1Good working conditions 4Job security 2Full appreciation of work that is done 5Tactful disciplining 9Employer loyalty to employees 7Interesting work 3Promotion and growth in the organization 6 Work Culture at Big Bazaar At Pantaloon Retail, Empowerment is what you acquire and 32
  33. 33. Freedom at Work is what you get. We believe our most valuableassets are our People. Young in spirit, adventurous in action, with anaverage age of 27 years, our skilled & qualified professionalswork in an environment where change is the only constant.Powered by the desire to create path-breaking practices and heldtogether by values, work in this people intensive industry is driven bysofter issues. In our world, making a difference to Customers’ lives isa Passion and performance is the key that makes it possible. Out ofthe Box thinking has become a way of life at Pantaloon Retail andliving with the change, a habit. Leadership is a value that is followedby one and all at Pantaloon Retail. Leadership is the quality thatmotivates us to never stop learning, stretching to reach the nextchallenge, knowing that we will be rewarded along the way. In thequest of creating an Indian model of retailing, Pantaloon Retail hastaken initiatives to launch many retail formats that have come toserve as a benchmark in the industry. Believing in leadership hasgiven us the optimism to change and be successful at it. We do notpredict the future, but create it.At Pantaloon Retail you will get an opportunity to handle multipleresponsibilities, and therein, the grooming to play a larger role inthe future. Work is a unique mix of preserving our core Indian valuesand yet providing customers with a service, on par with 33
  34. 34. international standardsAt Pantaloon you will work with some of the brightest people fromdifferent spheres of industry. We believe it’s a place where you canlive your dreams and pursue a career that reflects your skills andpassions. Measurement of Customer SatisfactionWe have devised a model called CEM- Customer ExperienceManagement Model to measure customer satisfaction in our stores.The Customer Experience Management Model focusses on thecustomer’s experience at every touch point in the store ranging from 34
  35. 35. their first impression of the store, to their experience at the trialrooms, toilets, with our staff through various processes such as billingand exchanges. We have hired a research agency called MACRO-Market Analysis and Consumer ResearchOrganisation. This agency sends people who are called ‘MysteryShoppers’ to visit the stores and then their experience is documentedon a feedback form, which is then sent to us. Based on the feedbackformed analysis is done and the stores are given scores. This allows usto track performance on customer expectation at overall, format andstore levels, determine critical improvement areas are all levels andalso identify opportunities that we can leverage upon.Besides, we have also started an in-house initiative called ‘Pragati’whereby one person from the head office operations team visits thestores and observes the stores with respect to certain pre-parameterslike store exteriors, baggage window, customer service, storeambience etc. This activity is done on a quarterly basis and three beststores under each format are announced. This encourages the stores toimprove the efficiency of their store operations. SWOT AnalysisStrengths 35
  36. 36. • Better understanding of customers helping the company to serve them better. • Vast range of products under one roof helping in attracting customer and their family to shop together and enjoy the experience. • Benefit of early entry into the retail industry. • Diversified business operating all over India in various retail formats. • Ability to get products from customers at discounted price due to the scale of business.Weaknesses • High cost of operation due to large fixed costs. • Very thin margin. • High attrition rate of employees.Opportunities 36
  37. 37. • Lot of potential in the rural market. • Can enter into production of various products due to its in depth understanding of customers’ tastes and preferences. • Can expand the business in smaller cities as there is a lot of opportunity.Threats • High business risk involved. • Lot of competitors coming up to tap the market potential. • Margin of business reducing all the time. CONCLUSION Big Bazaar is undoubtedly the number one retailer in India. It 37
  38. 38. has built a very emotional and cordial relationship with its customers.It is also very intending to build long-term relationship with all itsstakeholders, which is very essential for a successful business venture.It is observed that the organisation hierarchy is professional as allthe departmental Managers directly report to the Store Manager whoin turn reports to the Zonal Head. Big Bazaar, with 25 years ofexperience in the field of weaving fabrics, is the leading Apparels andfashion design Fabric Company.There exist a healthy and positive relationship between employeesand managers.The employees accept their responsibilitieswholeheartedly, accept that it is their responsibility to carry out apart of the activities of the company and they will be heldaccountable for the quality of their work. It is found that more than60% of employees are of the age group of 20-35. From this itreveals that company is having young and energetic workforcewho are very creative, enthusiastic and also very determined to growin their career and in turn helping the company to grow. Workingenvironment is good and also the various facilities providedhelps in motivating the employees. The company is reaching out toall the sections of the society as it is creating a hypermarketwhere not only the rich people shop but also the middle and the lowerclass customers come to enjoy the whole shopping experience. REFERENCES 38
  39. 39. • http://www.pantaloon.com/• http://en.wikipedia.org/wiki/Pantaloon_Retail_India• www.scribd.com• www.google.com 39

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