Project on Human Resource Management

Lijjat Papad
Table of Contents:


Page
1. recruitment and retention strategy of Lijjat Papad 1


2. Work force structuring , Compensation Management 6
& Performance Management

1) Comment on the recruitment and retention strategy of Lizzat Papad. What
lessons can be learnt from the same? How can your organization benefit or use
the concept for its growth?
Comment on recruitment and retention strategy of Lijjat Papad:
Liat Papad can be depicted as a true organization of the women, by the women,
for the women. !o describe the recruitment and retention strategy of an organization
it is important to understand how the organization interacts with people at all
Le"els and how this interaction defines the organization#s attitude towards
People and process. $nderstanding organizational culture is central to strategic
Human %esources and ought to lead to initiati"es which de"elop the organization as a
whole. &t is always e'perienced that it is normally cultural issues which cause people
to lea"e an organization. &t is the reason why it is suggested that strategic Human
%esources initiati"es which ha"e a positi"e impact on organizational culture( and
concomitantly increases retention rates. !he retention and recruitment strategy of
Liat is well supported by its con"iction of Sticking to its core values for the past
forty years( Liat has ensured that e"ery process runs smoothly( members earn a
comfortable profit( agents get their due share( consumers get the assurance of )uality
at a good price( and society benefits from its donations to "arious causes.
!he entire cycle of recruitment is a "ery simple process. *ny woman who pledges to
adopt the institution+s "alues and who has respect for )uality can become a member
and co,owner of the organization. Liat can also be sited as an autonomous association
of persons united "oluntarily to meet their common economic( social and cultural needs
and aspirations through a ointly,owned and democratically,controlled enterprise. so as
the process of recruitment there is no formal recruitment process li-e deciding what
positions to fill( build a pool( etc.!here is no .ualification re)uired for applying or
being the member e"en an illerate can be an member &n addition to that( those
in"ol"ed in the rolling of the papads also need to ha"e a clean house and space to dry
the papads they roll e"ery day. !hose who do not ha"e this facility can ta-e up any
other responsibilities( li-e -neading dough or pac-aging or testing for )uality. !his is the
basic re)uirement for any candidates to oin the cooperati"e.


The Retention of Employees at Lijjat can be best understood with the below
mentioned cultural uniueness in the organi!ation.
Distributing profits
!here are accountants in e"ery branch of Liat and e"ery centre to maintain daily
accounts. "rofit is shared among all the members of that branch. !here is a
committee of /1 that decides how the profits are to be distributed. Company
generally buys gold coins ,, 0gm or 11 gm( depending on the profit. 2"eryone gets an
e)ual share of profit( irrespecti"e of who does what wor-( irrespecti"e of seniority or
responsibility. 2"en a 3en who recently oins gets the same share as others who ha"e
been with us longer. 2ach branch calculates its profit and di"ides it e)ually among all
its members.
Decentralization
4ecentralization wor-s in Liat. !he 5ar"odaya philosophy has always been the ideal
for Liat. Liat( ha"e ne"er shied away from sharing power in all acti"ities. *ll sister
members of the institution are the owners. *s mentioned earlier( all profit or loss is
shared. !he committee of /1 members manages the affairs of the institution. !here
are also 5anchali-as( or super"isors( for each centre to loo- after the daily affairs of a
centre. 3ut the wor- of the institution is such that each and e"ery member can ta-e
any initiati"e or any decision. *t the same time( each and e"ery member has the "eto
power. *ll decisions( maor or minor( are based on consensus among members. *ny
single member+s obection can nullify a decision.
*nother important fact about the institution is that no male can become a member
and no male employee whether wor-ing or honorary or on salary basis has "oting
rights.
Driven by values
!he brand is ha"ing the strength of 6#onsistently $ood %uality7 as its $5P .!he
Liat brand is built on certain core "alues that ha"e been ingrained into the entire
system.
.8a-e sure that the process runs smoothly
. 2nsure the highest )uality standards
. 9i"e the product at a good price
. 9ood corporate go"ernance and profit sharing.
2"ery member who oins in pledges( :. . . we will ma-e all,round effort to ensure that
the bens get real fruit of their labour and we will not allow to happen any type of
economic loss to the &nstitution -nowingly( un-nowingly( directly or indirectly. We are
aware that it is one of the "ery important traditions of our &nstitution that neither
sister,member nor employees ta-e away wrongfully any money or material from the
&nstitution. !hose who ta-e away money or materials wrongfully from the &nstitution
are either beggars recei"ing alms from the bens or thugs and robbers e'tricating
bread from a sister+s mouth.:
*mong others( the chief "alue that holds the institution firmly is a sense of self,
dignity and respect. !he organization discourages any -ind of class distinction and do
not declare as an organization for poor or needy women.
Shared destiny
2"ery member at Liat wor-s with a sense of pride in her wor-. *nd this pride comes
not only from the fact that we produce a good )uality product but also because we
ha"e stuc- to our core "alues. !hat( in turn has led to a sense of shared destiny in our
institution. 2"ery woman earns not according to the labour she puts in but the profits
the organization ma-e as a collecti"e effort are shared e)ually. &n spirit( Liat is a
nation unto itsel"es( almost li-e a mini,&ndia.
Valuing people
!he ;rganisation understands the family, time and social pressures women face e"ery
day. What the organization has done is simply to turn these into an ad"antage and not
an e'cuse. &t ser"es e"eryone.
Liat helps those women who are not encouraged to wor- outside their homes( to
contribute to the family income. *t the same time it is not prudent for the
organization to in"est in office property for so many members. <aluing people and
under,standing their problems has created for Liat a sound and sustainable business
model. Howe"er( though it would ma-e business sense to adopt modern technology for
mass production or use machines for pac-aging( etc( the organization ha"en+t done so
because it would defeat the "ery purpose of its e'istence( which is to pro"ide a
source of li"elihood and dignity to women through self,employment.

Lessons Learnt and using the similar concept for ro!th:
5hree 8ahila 9ram $dyog is a symbol of the progress of women in de"eloping
countries li-e &ndia. &t presents an e'plicit e'ample of organizational accountability.
&t too- the organization => years to grow from a ?,member team( to one( which has
=/111 members. !he organization not only aims at the economic empowerment of
women( it also see-s to raise the standard of li"ing of women. !he organization has
ta-en a maor step towards eradicating e"ils li-e po"erty and illiteracy. 5uch an
organization also forms a "ital lin- between social de"elopment and the ad"ancement
of rural women.
!he "ision and principles of Liat are based on the ideals of trusteeship. Lessons
which are learnt and can be used at our place can be summarized and understood by
focusing on the below mentioned concepts( which are embedded into the system of
Liat Papad..
@ 5hree 8ahila 9ram $dyog is a "oluntary organization.
@ !he organization ne"er accepts charity or grants.
@ !he organization belie"es in running the business wisely.
@ !he organization is li-e a family and the sisters run it as if they all belonged to the
same family.
@ !he organization is li-e a re"ered place of worship.
@ !he organization is a combination of three concepts( the business concept, the
family concept and the devotion concept.
!hese entire concepts are completely and uniformly followed in this institution. *s a
result of this synthesis( a peculiar Liat way of thin-ing has de"eloped therein.
!he &nstitution( o"er the years( has pa"ed the way for women to become self,reliant
and self,confident. Liat has pro"ided them the right platform to impro"e their status
in society.
Aurther more the institution has adopted the concept of business from the "ery
beginning. *ll its dealings are carried out on a sound and pragmatic footing ,
Production of )uality goods and at reasonable prices. &t has ne"er and nor will it in
the future( accept any charity( donation( gift or grant from any )uarter. ;n the
contrary( the member sisters donate collecti"ely for good causes from time to time
according to their capacity. 3esides the concept of business( the institution along with
all it+s member sisters ha"e adopted the concept of mutual family affection( concern
and trust. *ll affairs of the institution are dealt in a manner similar to that of a family
carrying out its own daily household chores
3ut the most important concept adopted by the institution is the concept of de"otion.
Aor the member sisters( employees and well wishers( the institution is ne"er merely a
place to earn one+s li"elihood , &t is a place of worship to de"ote one+s energy not for
his or her own benefits but for the benefit of all. &n this institution wor- is worship.
!he institution is open for e"erybody who has faith in its basis concepts.
/) !he case of 5hri 8ahila 9riha $dyog Liat Papad illustrates how the
organization#s "alues and philosophy are integrated with the systems of managing
human resources. 3riefly describe what are the "arious systems and processes for
wor-force structuring( compensation management and performance management
and how are they integrated with the "alues of the organization.
Work force structuring , Compensation Management & Performance Management
Decentralization works in Lijjat. !he 5ar"odaya philosophy has always been the ideal
for Liat. Liat( ha"e ne"er shied away from sharing power in all acti"ities. *ll sister
members of the institution are the owners. *s mentioned earlier( all profit or loss is
shared. !he committee of /1 members manages the affairs of the institution. !here
are also 5anchali-as( or super"isors( for each centre to loo- after the daily affairs of a
centre. 3ut the wor- of the institution is such that each and e"ery member can ta-e
any initiati"e or any decision. *t the same time( each and e"ery member has the "eto
power. *ll decisions( maor or minor( are based on consensus among members. *ny
single member+s obection can nullify a decision.
*nother important fact about the institution is that no male can become a member
and no male employee whether wor-ing or honorary or on salary basis has "oting
rights.
Compensation can be defined as the remuneration recei"ed by an employee in return
for hisBher contribution to the organization. &t can also be stated as an organized
practice that in"ol"es balancing the wor-,employee relation by pro"iding monetary
and non,monetary benefits to employees. !his is "ery much e"ident in the case of
5hree 8ahila gram $dyog.
Performance management CP8) includes acti"ities which ensure that goals are
consistently being met in an effecti"e and efficient manner. Performance
management can focus on the performance of an organization( a department(
employee( or e"en the processes to build a product of ser"ice( as well as many other
areas.P8 is also -nown as a process by which organizations align their resources(
systems and employees to strategic obecti"es and priorities

Liat helps women who are not encouraged to wor- outside their homes( to contribute
to the family income. !heir bens ta-e dough home and roll them into papads when they
are free from their domestic chores.*t the same time it is not prudent for the
organization to in"est in office property for so many members. !he perfect fit for both
is using the members+ homes for the rolling and drying of papads. Do additional
o"erhead costs( no in"estment either.
<aluing people and under,standing their problems has created for Liat a sound and
sustainable business model. Howe"er( though it would ma-e business sense to adopt
modern technology for mass production or use machines for pac-aging( etc( they
ha"en+t done so because it would defeat the "ery purpose of their e'istence( which is to
pro"ide a source of li"elihood and dignity to women through self,employment.
"ntegration With the #alue of the orgni$ation
2"ery member at Liat wor-s with a sense of pride in her wor-. *nd this pride comes
not only from the fact that they produce a good )uality product but also because they
ha"e stuc- to their core "alues.
!his cooperati"e organization was started by se"en women on a terrace of a building in
9irgaum in 8umbai. *lthough only one of those se"en sur"i"es today( the organization
has not gi"en up on the ideals they started with.
That, in turn has led to a sense of shared destiny in the institution. Every woman earns
according to the labour she puts in but the profits they make as a collective effort are
shared equally.
In spirit, they are a nation unto ourselves, almost like a mini-India, they share the same
values, are a democratic set up and, like India, have members from every community,
every religion, every language within their fold. They work together and dream together
for a better tomorrow.
The Organiation understands the family, time and social pressures women face every
day. !hat they have done is simply to turn these into an advantage and not an e"cuse. It
serves everyone.