Managing HRM MA(N) director JAO JGM (PJ)(PE)MAF(P) JGM GM MM(W) O(W)(International M(MA) MFN Finance group DGM(HR)JGMMGR(PJ)

MPJDM(PI) (Product) M(MM)Finance MAC DMA(N)Projects MGR(PJ) MRJM(PP) Product (Group) MM(AP) Managing director DM(MA) ATT (Projects) MPJ DMA(W)GM (Group) DMA(P) AGM(PF) MGR(PJ) AGM(PP) (PP) DE(M)Sr OACommercial D(PJ) DE(M) MM(ME) Director MM(T) DMM A Product Projects marketing)

2011-12 HMT (INTERNATIONAL

VISHAK.G 10UTB43 PSG INSTITUTE OF MANAGEM

CERTIFICATION
This is to certify that Mr. Vishak.G, a student of PSG Institute of Management, Coimbatore has completed his internship training at HMT International Ltd., Bangalore for a period of 4 weeks from 17th October to 11th November 2011. This report embodies the original work during his internship period of above mentioned 4 weeks.

DATE:

JEROME KUJUR (DGM-HR)

KRISHNAVENI.R (MENTOR)

ACKNOWLEDGEMENT
First and foremost, I would like to express my gratitude to people, whose cooperation and guidance helped me to complete this study. I express my sincere thank to Mr. S Girish Kumar, Managing Director of HMT International for giving me an opportunity to undergo my internship and provide me with his valuable suggestions and help to prepare this report. I would also thank Mr. Jerome Kujur, DGM (HR) for his guidance and valuable support during the course of this internship. I would also thank my mentor Dr. Krishnaveni.R who has guided me and has given me constant support and helped me in planning all the required information well in advance.

DATE:

VISHAK.G

HMT Ltd. - Company profile

Incorporated in 1953 by the Government of India as a Machine Tool manufacturing company. Over the years diversified into Watches, Tractors, Printing Machinery, Metal Forming Presses, Die Casting & Plastic Processing Machinery, CNC Systems & Bearings. Successful technology absorption in all product groups through collaborations with world renowned manufacturers & further strengthened by continuous in-house R&D. Today, HMT comprises five subsidiaries under the ambit of a Holding Company, which also manages the Tractors Business directly.

History
It was in the early post independence era that, HMT began in a small way to meet a big commitment; 'To manufacture mother machines to build modern industrial India'. HMT was conceived by the Government of India in 1949, and was incorporated in 1953, with the objective of producing a limited range of machine tools, required for building an industrial edifice for the country. THE 1960's: With the success achieved in the initial years in absorbing the technology and in attaining production competence far ahead of the original plans, the Company launched a bold plan of diversification and expansion which resulted in the duplication of the Bangalore Unit and the setting up of new units at Pinjore, Kalamassery and Hyderabad. In 1967, recession struck the Indian Engineering Industry and the consumption of machine tools dipped drastically. The traumatic years of recession did indeed serve to bring to the fore two latent strengths of HMT, namely, the urge to survive and the confidence to innovate. With these strengths at full play, the Company emerged from the recession: With the world's widest range of machine tools and associated services under a single corporate entity. With action plans firmly launched for diversification into Tractors, Presses and Press Brakes, Printing Machines, Die Casting and Plastic Injection Moulding Machines, Horological Machinery, etc., which were considered to have economic cycles that are different from those of machine tools. With a Watch Factory already established in 1961-62, additional capacities for watch production were contemplated to provide a greater cushion against cyclical fluctuations in capital goods markets and also to meet the

burgeoning demand for watches. With export markets of enormous potential under active development.

THE 1970's: The 70s witnessed the fructification of all the diversification plans as envisaged. HMT setup HMT International Limited as a subsidiary company to channel HMT's products and technical services abroad.

Two more units for manufacture of Watches, one at Srinagar and one at Tumkur HMT took over Machine Tool Corporation at Ajmer as its sixth machine tool unit.

THE 1980's:

In the 80s, HMT as a part of vertical integration efforts, launched units to manufacture Watches at Ranibagh Watch Cases at Bangalore Stepper Motors at Tumkur CNC Systems at Bangalore Ball screws for use on CNC machines at Bangalore etc. Also, HMT took over Indo-Nippon Precision Bearings Ltd, a state owned unit as a subsidiary, which was renamed HMT-Bearings Ltd. HMT took over Praga Tools Ltd as another subsidiary.

THE 1990's: The Company restructured itself into five Business Groups viz.,

Machine Tools, Watches, Tractors, Industrial Machinery and Engineering Components as part of Business Reorganization. The New Millennium HMT is now restructured with addition of three more subsidiaries to those already existing. HMT now comprises of six subsidiaries under the ambit of the Holding Company which also manages the Tractors business directly. HMT Machine Tools Limited, Bangalore. HMT Watches Limited, Bangalore. HMT Chinar Watches Limited, Jammu. HMT Bearings Limited, Hyderabad. Praga Tools Limited, Hyderabad. HMT (International) Limited, Bangalore. The strategic plans of the HMT group are coordinated by the holding company at Bangalore. To navigate through the challenges of the new millennium, HMT seeks strategic alliances from global leaders to synergize its own strengths with symbiotic inputs from the partners. For them, the whole world of opportunities is ahead to emerge as a global engineering conglomerate.

Vision and Mission Corporate vision To be leading global engineering conglomerate focused on customer delight in our fields of Endeavour. Corporate mission To establish as one of the worlds premier companies in the engineering field having strong international competitiveness

To achieve market leadership in India through ensuring customer satisfaction by supplying internationally competitive products and services To achieve sustained growth in the earnings of the group on behalf of shareholders

Corporate Objectives & Goals To encourage the modernisation of Indian Industry through the supply of engineering goods and services of world class excellence To maintain technological leadership through continuous efforts to update product technology and manufacturing methods To globalise our operations by developing a mix of international markets and businesses To ensure a satisfactory return on capital employed, to meet the growth needs and the aspirations of our stakeholders and to present an active, pleasant and productive working environment.

HMT Limited- Holding Company HMT Limited, with a diverse range of products, over 18 manufacturing units and a countrywide well established marketing network restructured its various businesses into different subsidiaries under the ambit of a holding company. The constituent subsidiaries of HMT Limited are as below while the holding company retains the Tractors Business Group. Sl.No. Name of Subsidiary % Holding 1 2 3 4 5 HMT Machine Tools Limited HMT Watches Limited HMT Chinar Watches Limited HMT International Limited HMT Bearings Limited 100 100 100 100 97.25

6 Praga Tools Limited 51.00 The Holding Company with its Corporate Head Quarters at Bangalore forms the hub for the activities of the different subsidiaries. The Holding Company while ensuring good corporate governance also pursues strategies such as Creation of strategic alliances, Development of brand equity, Provision of strategic planning inputs, Interface with regulatory agencies,

Creation and maintenance of data warehouse with suitable corporate informational data for the use of all subsidiaries.

Products Watches Tractors Machine tools Bearings Business domain Watches Projects and consultancy Tractors Machine tools Bearings Printing machinery

SWOT Analysis
Strengths Skilled man power Technical base in diverse fields Availability of raw materials Wide range of products at industry level Component manufacture capabilities Business acumen Tooled up machines Backed up by the manufacturing expertise of holding company and its subsidiary products such as machine tools, tractors and watches Wide experience in exports since last 36 years Exported more than 18000 machine tools, 2000 tractors and 14 lakh watches Marketing network in 40 countries and export to over 75 countries Products are based on technical know-how acquired from world leaders Proven experience in execution of turnkey projects in the international market Backed up by technical and skilled labor from HMTs subsidiaries.

Weaknesses

Market reach is limited by resources Companys core strength not known adequately abroad Lack of competitive edge against low cost countries like China and Taiwan Sickness of the main branch is affecting the prosperity of HMT(I) Free access to international market directly by manufacturing and other traders increase competitive pressure Higher interest rate in relation to develop countries making HMT product less competitive Poor process capability, low volume of production Lack of proper vision and guidance Absence of a young workforce Wide technological gap in manufactured goods Poor infrastructure in ancillaries-component sub system Lack of pride in workmanship

Opportunities New opportunities in engineering and service exports on account of free trade WTO regime

Vast opportunities in Africa for medium technology and medium priced goods as alternatives to high end technology product from western countries Large and growing domestic markets in areas such as consumer durables, automotive components & accessories and casting/forging.

Threats Non competitive prices and delivery slippage pose a threat to retain customer abroad Emergence of China, Taiwan and East European manufacturers with aggressive marketing is a threat to companys exports Competition from international players manufacturing in India

Hierarchy & Organizational Structure

Business groups in HMT (I) Ltd

PRODUCT

PROJECTS

FINANCE AND HRM

Human Resource Department- HMT(I) Human resource plays an important and effective role in promoting good and harmonious relation between employees and employers for growth and development of the country. HRM is concerned with the people dimension in management. Since every organization is made up of people, acquiring their service, developing their skills, motivating them to high level of performance and ensuring that they continue to maintain their commitments to the organization are essential to achieve in organization objectives. This is true regardless of the organization, government business, education, health, recreation or social action. Getting and keeping good people is critical to every organization, whether profit or non profit, public or private. The purpose of HRM is to improve productivity ethically and socially responsible. The HR department exists to support the managers and employees as they pursue the organizational strategies. The purpose and objective guide the practices of HR management that is also commonly called personal management.

Key Activities of HR in HMT

Human resource planning Recruitment, Selection & Placement Training & Development Promotion & Transfer Performance appraisal VRS HR/Man power planning Designing performance appraisal systems, introducing job rotation, feedback and counseling mechanism, training system, career development exercise and team building exercise are a part of the HR planning in HMT(I). Introducing changes to these is also a part of HR planning. Creating a performance driven culture through effective management of performance of all staff members also is a part of HRP. Recruitment, Selection & Training The function of personnel department in HR to recruit the best candidate in the field and engineering, finance, marketing, production, personnel, etc. so it favors the objectives requirement. HMT(I) favors systematic scheme of centralized requirement. The recruitment of management trainees in engineering and other areas like finance, marketing, personnel, etc. is made centrally by the corporate personnel directorate. For such centralized recruitment, either of the following method will be adopted as per need and exigency. Campus Interviews Recruitment through Open All India advertisement

Training & Development MBX is one of the training centre which gives training not only to employees but also to students and customers. For the employees nearly six months training is given as job training. Students are selected every

year before August 15 and they are given training in different departments like purchase, sale, personnel, etc. Promotion & Transfer It is online basis of results of PA. Promotions are influenced by time period granted for a particular post as well as by the vacancies arising due to retirement and separation of employees. Transfer strengthens job rotation system, job exposure and experience to enrich the feelings of oneness and belonging and to prevent monotony transfers.

Functions performed by HRD in HMT(I) Creating and promoting a human resource philosophy in the organization and getting the approval and commitment of the top management. Determining the HR needs of the organization. Educating the executives and managers and other staffs of the organization regarding the various aspects of HR approaches adopted in the organization. Recruitment, selection, placements, etc.

Designing, developing, introducing, directing and devoting the human resource development program. Developing and maintaining effective communication system. Developing compensation plan acceptable to both management and employees. Establishing and maintaining cordial industrial relation system. Maintaining employees welfare schemes. Preparation of HRD policy and manual. Preparation and submission of comprehensive, integrated long range HRD plan for the company. Preparation and submission of comprehensive integrated long range HRD plan for the company. Co-ordination for institution for academic institution interface. Develop career growth of all categories of personnel. Dealing with workers education. Employee counseling. Monitoring and implementation of HRD plan. Co-ordination for identifying the training and development needs target selling by HRD chief on quarterly and annually basis.

FINDINGS The growing competition and technology developments in this sector are having inevitable effects on the Indian machine tool industry as a whole. The HMT machine tools Ltd. are facing typical problems in the emerging globalization scenario. The company has not been utilizing whole installed and licensed capacity of its machines efficiently which has in turn resulted in low production.

Interruption of trade union is more in the work of management, lack of utilization of infrastructure, government is not industrializing at fast pace. Absence of centre of excellence for research and development, there is no proper time management in HMT, motivation of employees is less, less concentration on domestic market and also no recruitment and selection in corporate office.

RECOMMENDATION The company should make efforts in making the whole use of installed and licensed capacity. Infrastructure should be utilized at optimum level. The company should update its technology so that it can beat the competitors price and also produce higher quality products. Machines must be replaced in order to reduce the cost of production. Government should liberalize some policies in order to take necessary decision by management. Development in R&D. The company should reduce inefficiency, absenteeism and idle time. Upgrade the training programmers in order to increase the efficiency of workers.

CONCLUSION The study is carried out as a part of curricular requirements of MBA, gave me real exposure to the operation procedure of the company. It helped me to gain the practical knowledge about the various activities, which carried out in the company. HMT is very popular name among every Indian because of its innovations, technology, quality, assurance and durability to its people and customer. HMT has created the brand image that symbols machine tools to manufacture, tractor to farmers and watches to millions of people in India. Today, HMTs machine tools expertise had been developed to an extent that HMT can design and develop any kind of machine from simple lathes and CNC machines to flexible manufacturing systems. Today HMT is multi-technology and multi-product company. In the changed market condition the organization needs to focus on the customer satisfaction, in reaching out their goal. The management has to constantly upgrade technology product profile, internal work process and plant & machinery. In the end ultimately it is employees who will change the performance of the company. Therefore motivation should be of interpersonal relationship among employees.

BIBLIOGRAPHY Websites: www.hmtindia.com www.hmti.com www.citehr.com Books referred: HMT Manual Human Resource Management- K.Ashwathappa