BMW Colg Final

SUMMER TRAINING REPORT SUBMITTED TOWARDS THE
PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN

MANAGEMENT
TALENT ACQUSITION AND TALENT DEVELOPMENT

IN BMW CHENNAI PLANT- INDIA
SUBMITTED BY:
ANUSHREE KAUSHAL
MBA (2010-2012)
ENROLLMENT NO: A30101910092
INDUSTRY GUIDE
FACULTY GUIDE
Mr. G. RAMALINGAM
Mrs. APARAJITA DAS GUPTA
MANAGER-HR
Sr. Lecturer
BMW PLANT CHENNAI
AMITY GLOBAL BUSINESS

SCHOOL, NOIDA
AMITY UNIVERSITY UTTAR
PRADESH
1
Anushree Kaushal, Amity University
CERTIFICATE OF ORIGIN
This is to certify that Ms. Anushree Kaushal a student of Post Graduate

Degree in Marketing, Amity Global Business School, Noida has worked in the
Human Resource department of BMW India (P) Ltd., under the able guidance
and supervision of Mr. G. Ramalingam, Manager-HR, BMW Plant-Chennai. The
period for which she was on training was for 8 weeks, starting from 1 st June to
29th July, 2011. This internship report has the requisite standard for partial
fulfillment of the Post Graduate degree in Marketing. To the best of our
knowledge no part of this report has been reproduced from any other report and
the contents are based on original research.
Ms. Aparajita Das Gupta
Ms. Anushree Kaushal
Faculty Guide
AGBS
2
ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr. G. Ramalingam,

Manager-HR, BMW Plant Chennai, for his able guidance, continuous support
and cooperation throughout my project, without which the present work would
not have been possible.
I would also like to thank the entire team of BMW Plant Chennai, for the
constant support and help in the successful completion of my project.
Also, I am thankful to my faculty guide Ms. Aparajita Das Gupta of my institute,

for her continued guidance and invaluable encouragement.
ANUSHREE KAUSHAL
3
TABLE OF CONTENTS
Sr. No
Subject
Page No
1.0
Executive Summary
2.0
Industry Profile
3.0
Company Profile
11
4.0
Learning
28
5.0
Bibliography
77
6.0
Case study
78
4
Executive Summary
BMW is one of the world's leading manufacturers of automobiles, including

cars and motorcycles. The marketing position it enjoys is unparallel and
since its inception has created its own niche in the automobile sector. To
sustain its competitive position in the automotive market it needs to have
highly skilled, flexible and committed work force, the ability to retain
developed talent, and a strong partnership between management and
employee population.
Human Resources is the base by which any organization survives .It can be
inferred that Human Resources is the backbone of any successful
organization as without a talented group of people to hire, culture, and
inform employees, the company is doomed for failure.It is for this reason
that this training at the human resource department would be priceless for
me in all senses of the word. Through this training, my aim of understanding
the alignment between the objectives of the Human Resources working in
the organization with the results an organization is is fulfilled.
The training has provided me an understanding of the various functions of
Human
Resources
departments
namely,
Performance
Appraisal,
Recruitment, Training and Development to name a few. Since BMW

Chennai Plant was under expansion Talent Acquisition & Talent
Management was prime focus during my training.
In the present job markets, where companies compete for attracting the best
of the talent, employer brand, becomes more relevant when compared to
various critical factors like job profile and the performance appraisal.
Therefore, the performance measuring tool have also been
studied thoroughly as a part of the project.
5
This training has been a means to understand the functioning of an

organization, as supreme as BMW. The exposure gained throughout my
summer internship has been incredible and I would like to thank all for their
support and encouragement. Without the cooperation from everybody, this
study would not have been possible.
An Overview of the Indian Automobile Industry
Starting its journey from the day when the first car rolled on the streets of
Mumbai in 1898, the Indian automobile industry has demonstrated a
phenomenal growth to this day. Today, the Indian automobile industry
presents a galaxy of varieties and models meeting all possible expectations
and globally established industry standards. Some of the leading names
echoing in the Indian automobile industry include Maruti Suzuki, Tata
Motors, Mahindra and Mahindra, Hyundai Motors, Hero Honda and
Hindustan Motors in addition to a number of others.
During the early stages of its development, Indian automobile industry
heavily depended on foreign technologies. However, over the years, the
manufacturers in India have started using their own technology evolved in
the native soil. The thriving market place in the country has attracted a
number of automobile manufacturers including some of the reputed global
leaders to set their foot in the soil looking forward to enhance their profile
and prospects to new heights. Following a temporary setback on account of
the global economic recession, the Indian automobile market has once again
picked up a remarkable momentum witnessing a buoyant sale for the first
time in its history in the month of September 2009.
6
The automobile sector of India is the seventh largest in the world. In a year,
the country manufactures about 2.6 million cars making up an identifiable
chunk in the worlds annual production of about 73 million cars in a year. The
country is the largest manufacturer of motorcycles and the fifth largest
producer of commercial vehicles. Industry experts have visualized an
unbelievably huge increase in these figures over the immediate future. The
figures published by the Asia Economic Institute indicate that the Indian
automobile sector is set to emerge as the global leader by 2012. In the year
2009, India rose to be the fourth largest exporter of automobiles following
Japan, South Korea and Thailand. Experts state that in the year 2050, India
will top the car volumes of all the nations of the world with about 611
million cars running on its roads.
At present, about 75 percent of Indias automobile industry is made up by

small cars, with the figure ranking the nation on top of any other country on
the globe. Over the next two or three years, the country is expecting the
arrival of more than a dozen new brands making compact car models.
The Automotive industry in India is one of the largest in the world and one
of the fastest growing globally. India manufactures over 17.5 million
vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33 million
every year. It is the world's second largest manufacturer of motorcycles, with
annual sales exceeding 8.5 million in 2009. India's passenger car and
commercial vehicle manufacturing industry is the seventh largest in the
world, with an annual production of more than 3.7 million units in 2010.
According to recent reports, India is set to overtake Brazil to become the
sixth largest passenger vehicle producer in the world, growing
16-18
percent to sell around three million units in the course of 2011-12. In 2009,
India emerged as Asia's fourth largest exporter of passenger cars, behind
Japan, South Korea, and Thailand.
7
As of 2010, India is home to 40 million passenger vehicles and more than

3.7 million automotive vehicles were produced in India in 2010 (an increase
of 33.9%), making the country the second fastest growing automobile
market in the world. According to the Society of Indian Automobile
Manufacturers, annual car sales are projected to increase up to 5 million
vehicles by 2015 and more than 9 million by 2020. By 2050, the country is
expected to top the world in car volumes with approximately 611 million
vehicles on the nation's roads.
A chunk of India's car manufacturing industry is based in and around
Chennai, also known as the "Detroit of India" with the India operations of
Ford, Hyundai, Renault and Nissan headquartered in the city and BMW
having an assembly plant on the outskirts. Chennai accounts for 60 per cent
of the country's automotive exports. Gurgaon and Manesar in Haryana are
hubs where all of the Maruti Suzuki cars in India are manufactured. The
Chakan corridor near Pune, Maharashtra is another vehicular production hub
with companies like General Motors, Volkswagen, Skoda, Mahindra and
Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors
having assembly plants in the area. Ahmedabad with the Tata Nano plant,
Halol again with General Motors, Aurangabad with Audi, Skoda and
Volkswagen, Kolkata with Hindustan Motors, Noida with Honda and
Bangalore with Toyota are some of the other automotive manufacturing
regions around the country.
Recently, the automotive giants of India including General Motors (GM),
Volkswagen, BMW, Honda, and Hyundai, have declared significant
expansion plans. On account of its huge market potential, a very low base of
car ownership in the country estimated at about 25 per 1,000 people, and a
rapidly surging economy, the nation is firmly set on its way to become an
outsourcing platform for a number of global auto companies. Some of the
upcoming cars in the India soil comprise Maruti A-Star (Suzuki), Maruti
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Splash (Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small car (Bajai

Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition to several others.
Top Automobile Companies in India
Audi :
(Leading player in Premium Car segment)
9
BMW :
Mercedez-Benz :
Ford:
(Leading player in Medium Range Car
Segment)
General Motors (GM) :
(Leader in Innovative Services)
Tata Motors:
(Leading in Economical Car & Commercial
Vehicle Segment)
Maruti Udyog Limited:
(Leading player in Small Car Segment)
Mahindra & Mahindra:

(Leading player in Commercial Vehicle
Segment)
SWOT Analysis of Indian Automobile Industry
10
STRENGTH (S)
Domestic Market is large
Government provides monetary

assistance for manufacturing units
WEAKNESSES (W)
Infrastructural setbacks
Low productivity
Too
many
taxes
levied
by
government increase the cost of
Reduced Labor cost
production
Low investments in Research and

Development
OPPORTUNITY (O)
Reduction in Excise duty
Rural demand is rising
Income level is at a constant
THREATS (T)
Increasing rates of interest
Too much competition
Rising cost of raw materials
increase
Indian Luxury Car Market An Insight
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As the Indian economy continues on its growth curve, against all odds,
wealth creation is a natural byproduct. And Indian consumers have always
been dazzled by big brands and their correlation to social status so its not
surprising that the luxury car market has been growing in leaps and bounds.
The Indian consumers new willingness to spend has seen high-end, highstatus cars find their way into far more driveways than ever before. Its
almost as if theres a competition amongst consumers to see who can sport
the bigger, better car. And this has led to another competition, one of greater
significance.
With big brands comes fierce and intense competition. Mercedes was the
first foreign luxury carmaker in India, and dominated the market for nearly
15 years. Even with the introduction of several other luxury brands in the
last four years, Mercedes managed to control over 50% of the market until
2008 that is, when its compatriots literally stormed in and crashed the party.
In 2008, BMW sold 700 cars less than Mercedes, but in 2009 BMW
whipped past the market leader by selling almost 350 more cars. BMW saw
its share of the market increase from 9% in 2006, to a whopping 40% at the
end of 2009. In total, BMW sold 3,619 units in 2009 the highest number of
luxury cars sold by a single manufacturer in India in a single year, and an
increase of almost 25% over the previous year. Mercedes, on the contrary,
had a dip in sales of about 10% over the previous year stating a lack of
inventory due to the introduction of the new E Class as a reason.
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India has been flexible in the face of the global economic meltdown, and this
has reinforced the faith that global automakers have invested in this market
especially in the case of the German luxury triumvirate. As expected, other
luxury brands are entering the market as well. Tatas Jaguar Land Rover is
craving for a piece of the action as are, at the absolute extreme end of the
market, Bentley, Ferrari and Rolls Royce. Each brand is expanding its
presence across the country by opening new dealerships, or, in the case of
Mercedes, revamping its existing setup. The three-pointed star is in no mood
to admit defeat, and has big plans for 2011 with the all-new E Class and GL
Class. And, just to be sure, theyve invested Rs. 150 crore in a new state-ofthe-art plant in Pune, which is also rolling out the new S 500L, which, at Rs.
1 crore, is the most expensive car ever assembled in India.
BMW India has a vast range of artillery themselves, and theyve taken
effective steps to ensure a smooth and fast transition to become the luxury
segment leader. Their aggressive style, sporty undertones, and immense
popularity with the younger generation are certainly some of the reasons for
the surge in sales. More importantly, BMWs are meant to be driven
perhaps a quality that resonates well with the new age of wealth creators in
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the country. With the exceptional performance of their models, BMW caters
to car lovers and not just status seekers.
And with their high performance soul, BMW have cemented their brand
recognition into the hearts of many driving enthusiasts and luxury seekers
alike. Plus, theyve taken the lead in the luxury SUV segment as well with
the X3, X5 and X6, and aim to continue in that vein with the introduction of
the entry level X1 last
year. And, of course, theres jaw dropping
performance available from the likes of the Z4, not to mention the legendary
BMW- M cars.
But, being the market leader also means that you have to be that much more
vigilant. Audi has also captured the hearts of many Indians, as was witnessed
at the 10th Auto Expo. BMW and Audi were under the same roof, but it was
almost impossible to move past the Audi display. Huge crowds cramped and
stampeded just to get a glimpse of the Audi vehicles. In its market segment,
Audi is the true winner when it comes to growth. The brand managed to
increase its sales by an impressive 50%. In 2009, Audi sold 1,658 units, as
compared to 1,050 units in 2008. You can be sure that Audi will be a strong
contender for top honors in the coming years, as the brand draws in more
buyers courtesy of its wow-so-sexy designs, its wicked panache, and the
technological excellence under the hoods of its cars.
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But, here comes the shocker. Although the Indian luxury market seems on a
roll, its nothing but a micro-dwarfed midget when compared to its neighbor,
China. A glance at the sales figures is all it takes to understand exactly why
China is a force to be reckoned with. With insurmountable spending power,
China is truly every car manufacturers dream market. More importantly, no
one can doubt the fact that China has practically single handedly rescued the
entire automobile industry during the economic collapse. Here is how big
their pie is compared to ours BMW India created a record by selling 3,619
units in 2009, while BMW China sold an astounding 90,536 units.
Mercedes India sold 3,247 units in 2009, while Mercedes China sold 68,500
units and had a sales increase of 77%. But again, Audi comes out as the
victor. Audi is the leader in the luxury car market in China, and the VW
owned manufacturer sold a sky rocketing 158,941 units in 2009, at an
increase of 33% compared to 2008.
15
Its not just that China has a stronger economy, and many more millionaires
than India, the main reason behind these sales figures is the fact that there
are fewer restrictions on foreign imports, both for parts and wholly
assembled vehicles in China. The government has taken huge steps to
encourage foreign manufacturers, and in some cases they also lowered the
required capital investment for new ventures neither do they bombard
consumers with huge levies and taxes. Of course, China has a ten-year head
start at the very least, and is the third largest luxury goods market on the
planet. High end luxury brands have been around far longer in China, while
India is still being explored as a luxury market.
All said and done, India is very much an emerging market, and will continue
down that road. Only time can tell who will emerge victorious in the race to
become market leader in India. Every high-end luxury brand from across the
globe is eyeing this market, and with more brands dropping into India by the
day, competition will only get fiercer meanwhile the Indian consumer can
reap the benefits of this healthy brand war.
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Company Profile
An Insight of BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and
engine manufacturing company founded in 1916. It also owns and produces
the MINI brand, and is the parent company of Rolls-Royce Motor Cars.
BMW produces motorcycles under BMW Motorrad and Husqvarna brands.
BMW is known for its performance and luxury vehicles, and is the world's
largest luxury automobile manufacturer
BMW Group activities worldwide are coordinated from corporations head
office in Munich. A city landmark, the four cylinder tower at the Olympic
park is the nerve centre for an organization which covers over 150 countries
To achieve its aims, the company knows how to deploy its strengths with an
efficiency that is unmatched in the automobile industry.
Strategic objective
The BMW Group is the leading provider of premium products and
premium services for individual mobility.
Vision
17
Uniqueness through diversity, Leadership, taking Risk, courteous
Mission Statement
"To become most successful premium manufacturer in the car indusrty"
Company History
After World War I, BMW was forced to cease aircraft (engine) production by
the terms of the Versailles Armistice Treaty. The company consequently
shifted to motorcycle production in 1923 once the restrictions of the treaty
started to be lifted, followed by automobiles in 192829.
BMW's first significant aircraft engine was the BMW IIIa inline-six liquidcooled engine of 1918, much preferred for its high-altitude performance.
With German rearmament in the 1930s, the company again began producing
aircraft engines for the Luftwaffe. Among its successful World War II engine
designs were the BMW 132 and BMW 801 air-cooled radial engines, and the
pioneering BMW 003 axial-flow turbojet, which powered the tiny, 19441945-era jet-powered "emergency fighter", the Heinkel He 162 Salamander.
The BMW 003 jet engine was tested in the A-1b version of the world's first
jet fighter, the Messerschmitt Me 262, but BMW engines failed on takeoff, a
major setback for the jet fighter program until successful testing with
Junkers engines.
By 1959 the automotive division of BMW was in financial difficulties and a
shareholders meeting was held to decide whether to go into liquidation or
find a way of carrying on. It was decided to carry on and to try to cash in on
the current economy car boom enjoyed so successfully by some of
Germany's ex-aircraft manufacturers such as Messerschmitt and Heinkel.
The rights to manufacture the Italian Iso Isetta were bought, the tiny cars
themselves were to be powered by a modified form of BMW's own
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motorcycle engine. This was moderately successful and helped the company
get back on its feet. The controlling majority shareholder of the BMW
Aktiengesellschaft since 1959 is the Quandt family, which owns about 46%
of the stock. The rest is in public float.
In 1992, BMW acquired a large stake in Californian-based industrial design
studio Designworks USA, which they fully acquired in 1995.
In 1994, BMW bought the British Rover Group (which at the time consisted
of the Rover, Land Rover and MG brands as well as the rights to defunct
brands including Austin and Morris), and owned it for six years.
By 2000, Rover was making huge losses and BMW decided to sell the
combine. The MG and Rover brands were sold to the Phoenix Consortium to
form MG Rover, while Land Rover was taken over by Ford. BMW,
meanwhile, retained the rights to build the new MINI, which was launched
in 2001.
Chief designer Chris Bangle announced his departure from BMW in
February 2009, after serving on the design team for nearly seventeen years.
He was replaced by Adrian van Hooydonk, Bangle's former right hand man.
Bangle was famously (or infamously) known for his radical designs such as
the 2002 7-Series and the 2002 Z4.
In July 2007, the production rights for Husqvarna Motorcycles were
purchased by BMW for a reported 93 million euros. BMW Motorrad plans
to continue operating Husqvarna Motorcycles as a separate enterprise. All
development, sales and production activities, as well as the current
workforce, have remained in place at its present location at Varese.
Research and Development plant in World
19
Production and Assembly plants in world
Cars sold in Region
20
Market Trend
21
BMW in India
With its assembly plant in Chennai and the head office at Gurgaon, BMW
India is a 100% subsidiary of the BMW group. The initial investment in
India is 1.1 billion INR.
The wide range of BMW activities in India include the establishment of an
assembly production plant in Chennai (Tamil Nadu) and development of an
effective dealer organization across major metropolitan centers of the
country.
In medium term, BMW India has employed around 400 people; up to 600
additional jobs have been created in the dealer and service network.
On 29 March 2007, BMW India officially opened its plant in Chennai. The
BMW Plant Chennai produces the BMW 3 Series and BMW 5 Series sedans
in petrol and diesel variants and has a capacity to produce 3,000 units per
year on a single shift basis
BMW entered the Indian Market by setting up the following
a. National Sales company : Delhi
22
b. Parts Warehouse ; Mumbai

c. Vehicle Distribution Center : Chennai
d. Local Production Training Centre : Chennai
e.
Reasons for entry into Indian Market
The luxury segment is unexplored in India, accounting for no more
than 0.08% of the market. Nevertheless, high-end carmakers see it as
crucial to build a presence here due to the market's anticipated
growth.
In 2000, only five in every 1,000 Indians owned a car; by 2010, the
number is expected to have risen to 11 per 1,000. By the end of 2010,
there could be 13 million cars on India's already crowded roads, up
from just 5 million in 2000.
BMW wants to be benefited from this growth potential, but also
want to make an active contribution to this growth
Plant Chennai is a clear commitment to India as a business location.
Chennai has a developed infrastructure and it benefits from having

parts suppliers nearby.
Many potential production locations were analyzed for setting up the

production plant in India. Chennai was chosen as the most feasible option
because of the following reasons:
a.
b.
c.
d.
e.
Automobile manufacturers
Automotive suppliers
Qualified labor
Cost balance for production location
Infrastructure International Airport, Sea Port, Road Network
Sales and Service Network
23
BMW India is present at 16 locations in the Indian market; BMW Studio

(New Delhi), Deutschen Motoren (New Delhi), Deutschen Motoren (West
Delhi), Bird Automotive (Gurgaon, NCR), Navnit Motors (Mumbai),
Infinity Cars (South Mumbai), Krishna Automobiles (Chandigarh), Navnit
Motors (Bangalore), Kun Exclusive (Hyderabad), Kun Exclusive (Chennai),
Bavaria
Motors
(Pune),
OSL Prestige
(Kolkata),
Parsoli
Motors
(Ahmedabad), Platino Classic (Kochi), Kun Exclusive (Coimbatore) and

Sanghi Classic (Jaipur).
Products offered
BMW 3-Series
The 3 Series, a compact executive car manufactured since model year 1975,
is currently in its fifth generation models include the sport sedan, station
wagon, coupe, and convertible.
The 5 Series is a mid-size executive car, available in sedan and station
wagon forms. The 5 Series Gran Turismo, beginning in 2010, will create a
segment between station wagons and crossover SUV.
Assembled/Manufactured Locally
BMW 3 Series (330i, 320i, 320d Corporate Edition and 320d

Highline)
BMW 5 Series (523i, 520d, 525d and 530d)
BMW X1
BMW X3
BMW 7 Series (to be launched in December 2011)
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MINI (to be launched)
Rolls-Royce (to be launched)
Imported
BMW 5 Series (535i CBU)
BMW 5 Series Gran Turismo (Limited Edition)
BMW 6 Series (650i Coup and 650i Convertible)
BMW 7 Series (740Li, 750Li, 760Li and 730Ld)
BMW X3 (X3 xDrive25i, X3 xDrive20d)
BMW X5 (X5 xDrive48i, X5 xDrive30d and X5 xDrive30d

Highline)
BMW X6 (X6 xDrive50i and X6 xDrive30d)
BMW X6 M
BMW M3 (Coup and Convertible)
BMW M5
BMW M6 (Coup and Convertible)
BMW Z4 (sDrive35i Roadster)
International Purchase Office

BMW India has also established an International Purchasing Office (IPO) in
Gurgaon. The IPO will focus on the development of exports from India to
the BMW Group International Production Network and there work towards
increasing the sourcing share from India over the next years. The activities
include the identification and assessment of potential suppliers taking into
account BMWs requirements for quality, technology and logistics. The IPO
25
will explore procurement of production material (components) as well as IT

and Engineering Services.
Basic principles followed by BMW

1. Responsibility
2. Customer orientation
3. Peak performance
4. Effectiveness
5. Adaptability
6. Dissent
7. Respect, trust, fairness
8. Leading by example
9. Sustainability
10. Society
11. Independence
12. Associates
26
To understand the organization better, a consisted version of the organization

chart is given below:
27
28
The following points can be inferred from the organization chart depicted
above:
1. Horizontal Differentiation
1.1 Horizontal
differentiation
is
referred
to
as
departmentalization
1.2 BMW adopts functional departmentalization. The reason
for the same is that the philosophy All the employees
belonging to a function work together
1.3 Main functions in BMW are Logistics and IT, Assembly,
Quality, Human Resources, Plant Control (Finance)
2. Vertical Differentiation
2.1 It refers to hierarchical levels in an organization
2.2 Hierarchy in BMW is that Managing Director- General
Managers-Deputy
Manager-Specialists-
Team
Leader-
Associate
3. Span of Control
3.1 It refers to the number of subordinates a manager can
efficiently and effectively supervise
3.2 Ideally, the number is 5-6 subordinates
3.3. In BMW, the span of control ranges from 3-7
subordinates
4. Centralization
4.1 it refers to the extent to which the decision making
authority is concentrated at the top management
4.2 In BMW, the final decision lies in the hands of Managing
Director
5. Formalization
1.1 It refers to the extent to which the rules, procedures,
communication, and instructions are written down and
followed by organizational members.
1.2 In BMW, formalization is high
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1.3 Factors causing high formalization are Nature of task is

routine, nature of product is Mass, Predictability of
outcome is high, Cause and Effect relationship is high,
Presence of functional departments, low variety, high
volume
6. Specialization
6.1 It refers to the work specialization which is the result of
division of labor
6.2 In BMW, there is high specialization
6.3 Reasons for the same is that every functional head is an
expert in his or her area
BMW follows a Target management process as given below:
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SWOT Analysis of BMW in India

Strength
o Diverse range of products (BMW, Mini & Rolls-Royce)
o Increasing turnovers
o Brand Awareness
o Worlds leading Premium Automobile Manufacturer
o Capabilities to turn resources into advantage
Weaknesses
o Customers disinterest
o Design
o Buyers Knowledge
o Substitute products
Opportunities
o New Technologies in Automobiles
o Market shift to globalization
o Innovation & Alliances
o Diversification
o New Products
o Diversification
Threats
o Economic Condition
o Competitors Strategy
o New Entrants in market
o Market shift to Globalization
o Expansion of other Automobile Companies
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Comparison Edge with competitors
Performance
Luxury
Design
Price
32
Satisfacotry
REFLECTIONS OF WHAT HAS BEEN LEARNT
Talent Acquisition
It is a process of attracting, finding and selecting highly talented individuals
those who align with the business strategy possess required competencies,
and who will integrate smoothly and productively into the organization and
its culture, to meet current and future employment needs.
In order to attract people for the jobs, the organization must communicate
the position in such a way that job seekers respond. To be cost effective, the
Talent Acquisition process should attract qualified applicants and provide
enough information for unqualified persons to self-select themselves out.
Thus, the Talent Acquisition process begins when new recruits are sought
and ends when their applications are submitted. The result is a pool
from
which new employees are selected.
33
Talent Acquisition Operational Workflow
Requisition Process
Sourcing
Application Process
Screening & Interview
Employment
Offer
Anushree
Kaushal, Amity
University
Notification of Non34
Selected Candidates
35
36
37
38
PURPOSES AND IMPORTANCE
The general purpose of Talent Acquisition is to provide a pool of potentially

qualified job candidates. Specifically, the purposes are to:
Determine the present and future requirements of the organization in

conjunction with its personnel-planning and job-analysis activities.
Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing

the
number of visibly, under qualified or overqualified job
applicants.
Help reduce the probability that job applicants, once recruited and
selected, will leave the organization only after a short period of time.
Begin identifying and preparing potential job applicants who

be
will
appropriate candidates.
Induct outsiders with a new perspective to lead the company.
Infuse fresh blood at all levels of the organization.
Develop an organizational culture that attracts competent people to

the Company.
Search or head hunt/head pouch people whose skills fit the

companys
Devise
values.
methodologies
for
assessing
psychological
traits.
Search for talent globally and not just within the company.
Design entry pay that competes on quality but not on quantum.

Anticipate and find people for positions that do not exist yet.
39
Increase organizational and individual effectiveness in the short term

and long term.
Evaluate the effectiveness of various recruiting techniques and

sources for all types of job applicants.
Talent Acquisition represents the first contact that a company makes with
potential employees. It is through recruitment that many individuals will
come to know a company, and eventually decide whether they wish to work
for it. A well-planned and well-managed recruiting effort will result in highquality applicants, whereas, a haphazard and piecemeal effort will result in
mediocre ones. High-quality employees cannot be selected when better
candidates do not know of job openings, are not interested in working for the
company and do not apply.
The Talent Acquisition process should inform qualified individuals about
employment opportunities, create a positive image of the company, provide
enough information about the jobs so that applicants can make comparisons
with their qualifications and interests, and generate enthusiasm among the
best candidates so that they will apply for the vacant positions.
The negative consequences of a poor recruitment process speak volumes
about its role in an organization. The failure to generate an adequate number
of reasonably qualified applicants can prove costly in several ways. It can
greatly complicate the selection process and may result in lowering of
selection standards. The poor quality of selection means extra cost on
training and supervision. Furthermore, when recruitment fails to meet the
organizational needs for talent, a typical response is to raise entry-level pay
scales. This can distort traditional wage and salary relationships in the
organization, resulting in avoidable consequences. Thus, the effectiveness of
40
a recruitment process can play a major role in determining the resources that
must be expended on other HR activities and their ultimate success.
FACTORS AFFECTING TALENT ACQUISITION
The following are the 2 important factors affecting talent acquisition:1) INTERNAL FACTORS
Recruiting policy
Temporary and part-time employees
Recruitment of local citizens
Engagement of the company in HRP
Companys size
Cost of recruitment
Companys growth and expansion
2) EXTERNAL FACTORS
Supply and Demand factors
Unemployment Rate
Labor-market conditions
Political and legal considerations
Social factors
41
Economic factors
Technological factors
METHODS OF TALENT ACQUISITION
The following are the most commonly used methods of recruiting people.
INTERNAL METHODS:
1. Promotions and Transfers
This is a method of filling vacancies from within through transfers and
promotions.
A transfer is a lateral movement within the same grade, from one job to
another. It may lead to changes in duties and responsibilities, working
conditions, etc., but not necessarily salary. Promotion, on the other hand,
involves movement of employee from a lower level position to a higher level
position accompanied by changes in duties, responsibilities, status and value.
2. Job Posting
Job posting is another way of hiring people from within. In this method, the
organization publicizes job opening on bulletin boards, electronic method
and similar outlets. One of the important advantages of this method is that it
offers a chance to highly qualified applicants working within the company to
look for growth opportunities within the company to look for growth
opportunities
within
the
company
without
looking
for
greener
pastures outside.
3. Employee Referrals
42
Employee referral means using personal contacts to locate job opportunities.

It is a recommendation from a current employee regarding a job applicant.
The logic behind employee referral is that it takes one to know one.
Employees working in the organization, in this case, are encouraged to
recommend the names of their friends, working in other organizations for a
possible vacancy in the near future. In fact, this has become a popular way of
recruiting people in the highly competitive Information Technology industry
nowadays. Companies offer rich rewards also to employees whose
recommendations are accepted after the routine screening and examining
process is over and job offers extended to the suggested candidates. As a
goodwill gestures, companies also consider the names recommended by
unions from time to time.
External Methods
Campus Recruitment
It is a method of recruiting by visiting and participating in college campuses
and their placement centers. Here the recruiters visit reputed educational
institutions such as IITs, IIMs, colleges and universities with a view to pick
up job aspirants having requisite technical or professional skills. Job seekers
are provided information about the jobs and the recruiters, in turn, get a
snapshot of job seekers through constant Inter change of information with
respective institutions.
A preliminary screening is done within the campus and the short listed
students are then subjected to the remainder of the selection process. In view
of the growing demand for young managers, most reputed organizations
(such as Hindustan Lever Ltd., Proctor & Cable, Citibank, State Bank of
India, Tata and Birla group companies) visit IIMs and IITs regularly and
even sponsor certain popular campus activities with a view to earn goodwill
in the job market
43
Talent Development
Talent Development refers to the process of developing and retaining
current workers to meet current and future business objectives. Companies
engaging in a talent development strategy shift the responsibility of
employees from the human resources department to all managers throughout
the organization.
Talent Development Includes:
Performance Management
Leadership & Training Development
Talent Assessment
Employee Development Program
Performance Management is one of the most important aspects of a

managers role. Its enabling and encouraging the right people to do the right
things at the right time. Performance management includes activities that
ensure that goals are consistently being met in an effective and efficient
manner. Performance management can focus on the performance of an
organization, a department, employee, or even the processes to build a
product or service, as well as many other areas.
PLANNING
MONITORIN
G
REWARDING
DEVELOPING
44
RATING
Leadership & Training Development is the field which is concerned with

organizational activity aimed at bettering the performance of individuals and
groups in organizational settings. It has been known by several names,
including employee
development, human
resource
development,
and learning and development. It encompasses three main activities:

1. Training: This activity is both focused upon, and evaluated against,
the job that an individual currently holds.
2. Education: This activity focuses upon the jobs that an individual
may potentially hold in the future, and is evaluated against those
jobs.
3. Development: This activity focuses upon the activities that the
organization employing the individual, or that the individual is part
of, may partake in the future, and is almost impossible to evaluate.
Talent Assessment:
Training and education programs have as their objectives to transfer of skills,
knowledge and changes in behavior. They can represent significant areas of
expenditure, and the time involved on the part of those being trained can
have an impact on business performance. It seems sensible and then to have
some means of measuring the effectiveness of the various forms of training
that are being invested in. This is the objective of Talent Assessment.
45
At the simplest level this involves a three-stage process:

1. Assessment of competence levels prior to training;
2. Conduct of the training event;
3. Assessment of the new level of competence after training.
Such an approach will serve two purposes. It will measure the impact on the
individual and also, over a period of time, measure the effectiveness of the
training methods used.
Example of Skill Measured in Assessment Test
46
SKIILS
InBasket/InTray
Leadership
Problem
Solving
Scheduling
Exercise
Personality
Test
Role Play
Interpersonal
Administrative
Leadership
Group
Discussion
X
X
Personal
Employee Development Program is a necessary component of a

companys efforts to:
o Improve quality
o Retain key employees
o Meet the challenges of global competition and social change
o Incorporate technological advances and changes in work
design.
47
Employee:
Title:
Org Code:
Position Code:
Reviewer:
Date:
Appraisal Type:
Appraisal Period: From:
To:
48
Example of Employee Development Plan
49
Program
Description
Target Audience
Executive
Development
Sequence
Emphasis on
strategic thinking,
leadership, crossfunctional
integration,
competing globally,
customer satisfaction
Senior professionals
and executives
identified as highpotential
Development of
functional expertise,
business excellence,
management of
change
Manager
Core Leadership
Program
Courses
Professional
Development
Program
Emphasis on
preparation for
specific career path
New Employees
Manager
Development
Global Business
Management
Executive
Development
Corporate
Entry
Leadership
Professional
Development
New Manger
Development
Experienced
Manager
Audit Staff
Financial
Management
Human
Resources
Technical
Leadership
HR Processes in BMW Chennai Plant
Recruitment
50
One of the primary functions of HR is to identify skilled and apt manpower

for the processes to be carried out in the organization. The recruitment
process at BMW is transparent and in my two month period, I had the
opportunity to observe internal recruitment and external recruitment, the
learnings of which can be potrayed with the help of MPM (Management
Process Model) Sheet.
S.no.
Process Step
Title of Work
Instruction
1.
2.
Request of Basis
Staff (Temp) (Recruitment
for Based on)
Approved
Job
Candidate
Search
(Internal
Candidates,
External
Cnadidates,
Interns/Proj
ect Trainee)
Title of Form
No.
Tools
Recruitment
Agency
/
News/Campu
s
PaperAdvt,
Internet
(Based
on
need)
Manpower
Request Form
Approval
Screening of List
of
Applications Applicants
with their
Applications
4.
Interview
& Candidate &
Selection
Interview
Schdule
Mandatory
Approved
Organization
al Chart,
Job
Description
& Manpower
Request
Form
Job
Description
data
Sheet
3.
Process
Form
Job Analysis
Document
51
5.
Medical
Test
/
Background
Check
Fitness
Criteria/Refre
nce Check
Medical
Form/Evaluat
ion Form for
Background
Check
Medical
Team/
Security
Agency
5.
Medical
Test
/
Background
Check
Fitness
Criteria/Refre
nce Check
Medical
Form/Evaluat
ion Form for
Background
Check
Medical
Form/Evaluat
ion Form for
Background
Check
6.
The sources of recruitment used by the company for this purpose are as
follows:
a. Recruitment agencies(pre-approved contractors)
b. Campus recruitments
The requirement is for manpower on the shop floor to do technical and
skilled work. Therefore, the interviews are being conducted for the post of a
Trainee to do technical work on the shop floor.
The competencies required for this job are as follows:

a. Communication skills
b. Technical knowledge / Subject knowledge
c. Minimum qualification required is Diploma in Mechanical /
Electrical / Automobile engineering.
Preference shall be given to those who have prior work experience in
automobile industry.
52
The interviews are conducted by the Team leaders or Managers, as the case
may be. However, I had the opportunity to perform the short listing of
candiadates which turned out to be a learning experience. The short listed
candidates are sent further for the second round of interview.
The Interview process
Step 1: Rapport Building Phase
The candidate is made comfortable by asking the following questions
a. How are you?
b. Where are you from?
c. How long did you travel from your place to this office?
Step 2: Lead and Probing Questions
In order to check the communication skills and the technical knowledge
possessed by the candidate, the following questions are asked:
a. What is your family background?
Lead Question
Competency tested: Communication Skills
b. What projects have you done so far?
Lead Question
Competency tested: Technical Knowledge
c. Can you explain any one?
Probing Question
Competency tested: Technical Knowledge and Communication skills
53
d. For which companies and for how long have you worked?
Lead Question
Competency tested: Technical Knowledge, Work Experience
e. What was the nature of your job?
Probing Question
f. Cite an instance to explain your work responsibility
Probing Question
Step 3: Checking the interest level of the candidate for the job
After having an idea about the technical knowledge and communication
skills of the candidate, further questions might be asked to check whether the
candidate is seriously interested in the job applied for or not.
The following questions were asked in order to know about the knowledge
possessed by the candidate about the company.
a. Why do you want to join BMW?
Lead Question
b. What do you know about BMW?
Lead Question
Competency tested: Knowledge about the company
c. For which department would you like to work for and why?
Lead Question
54
The short listed candidates were further for the second round of interview
which is to be conducted by the Team Leaders or Managers, as the case may
be. Till date 75 interviews have been taken out of which 10 have been
selected.
Campus recruitments
The selection process for candidates undergoing campus recruitments is as
follows:
a. Technical round / Aptitude Test
b. Group Discussion
Competency tested: Communication skills
c. Personal Interview
All candidates are required to appear for the aptitude test and group
discussion. The short listed candidates are required to appear for personal
interviews.
The forms for the purpose of evaluation the scores of candidates appearing
for the interview are as follows:
55
Evaluation Form
Group Discussion Proficiency
Candidate:
Date:
Instructor:
Unsatisfactory
Satisfactory
Excellent
Participation Level
(Clearly prepared for class discussions,
knowledgeable of materials, regular
contributions)
Situation Analysis
(Recognizes confusion in others,
identifies and manages misunderstandings,
recognizes when it
is inappropriate to speak)
Relationship Management
(Adequately manages conflict, allows
others to express different views,
effectively asserts themselves)
56
Information Exchange
(listens attentively to others, provides
focused, well-reasoned responses, asks
effective and insightful questions)
Delivery Skills
(Speaks in an audible voice, clearly
articulates ideas, conveys enthusiasm,
addresses comments to entire class)
Total Points:
Overall Assessment (Suggestions for Improvement)
Final Recommendation (When appropriate, this space should be used for the final summative
evaluation. The final summative evaluation can be expressed as pass/inadequate.)
Pass
Inadequate
Reason (only in the case of a failing grade):
Recommendation :
57
58
Consolidated Score Sheet
S.No
Name
Technical
GD
Round
Score
Score (50)
(25)
Total
(100)
Personal
Recommendations /
Interview(25)
Remarks, if any
1
2
3
4
5
6
7
8
9
10
Excellent
Attributes
Academics
Good
Average
Rating
Department:
Sex:
Poor
Position:
Candidate Name:
Section:
Date:
Strength:
Experience
Communication
Team work
Weakness:
59
Result
Orientation
Final Assessment
Selected
Interview Panel
S. No.
Name
Not Selected
Designation
Hold
Signature
60
Training
Constant training is given top all the employees to fine hone their skill set
and to improve on their job performance. BMW emphasis on regular training
to meet their quality standards and to develop the skills of its employees. The
training management process is explained below:
61
The process of training management is given below:
S.No.
Process step
Title of Work
Title of Form
Instruction
Mandatory
tools
Job Description Portfolio Process

Portfolio
round data
Assess
sheet, document,
training standard
Description Data
needs by doing GAP competency

Analysis
1
and level,
sheet,
projects plant
that
requires performance
skill
Training
annual Management
anticipate
specific
Job
System Procedure
or target,
knowledge
to employee
contribute for plant performance

performance target
evaluation,
Development
plan
Training needs Training
Complete
training as identified
Annual
requisition form
Training Plan
requisition for all

kinds of trainings
2
i.e.,
In
training,
house
External
Training etc
Identified
Prepare
Training
training Training Needs, Template
Plan Annual
Training Plan
plan and estimate training

3
training budget for resources

the following year.
and
budget
62
Training
4
Post
Training
Organizing training
evaluation,
programme
Internal Training
Evaluation FormF
Reminding
of Development
Evaluate the level of evaluation

5
development
after schedule
Evaluation form
one
trained for a period week prior to

of time
due date
Result
of JIT
Evaluation Versatility
Update all training evaluation and Sheet,

6
records
the
Skill Chart
completed Matrix,
records
Development
Evaluation Sheet
The training management system procedure describes the training needs

assessment, development of training plan, execution of training and
evaluation of the effectiveness of training to all employees including
temporary associates
Job instruction training
It refers to the training given at the work station by the team leaders / skill 4
employees to meet the production targets and quality requirements of a
particular operation
A Job Instruction Training Plan is prepared. It is conducted for the entire
associates whose scope of work is relevant to the product handling which
may affect the customer satisfaction
63
It is provided by the team leader or a person who is at skill level 4

throughout the year based on the requirement mentioned in the skill
evaluation sheet and will be evaluated every quarter by team leader/
respective manager (January, April, July, and October) during the first 10
days of the said months. At the end of the 10 th day the evaluation sheets shall
be submitted to the Human Resources department
Based on the evaluation a Job Instruction Training plan is prepared. It
contains a list of associates and workstations in each department with the
status of skill level and next target date for evaluation. The status of skill is
displayed as 1, 2, 3 or 4.This also indicates the versatility status of associates
in different work stations
The status Green indicates that the associate is under training.
The status Yellow mentions that he is the evaluation period
The status Red indicates that evaluation is not done as per the target date.
The reason for the Red status shall be discussed with the respective
Managers or Specialist Human Resources
The evaluation is done every quarter for associates who were at skill level 1
& 2 and once in every 6 months for associates at skill level 3 & 4.
Based on the evaluation, skill matrix will be updated by the team leader.
The team leader is responsible for assigning the corresponding job for the
associates based on the skill level mentioned in the skill matrix
JIT is done for all new employees, employees moved to other work stations,
and employee returning from a long leave more than a month. JIT evaluation
also covers the contract or temporary workers
Any associate joining to a particular station is considered to skill level1
before the evaluation
64
Once the associate reached the skill level 3, he can be trained in other
stations for versatility. The need and the area of training shall be decided by
the team leader or Manager based on production or quality requirements.
Before training the skill 3 associate in other station, the team leader should
ensure the own station has a minimum 1 person of skill level 4.
Developmental training
This training is given to the employees based on the training needs identified
by their respective team leaders or Managers based on performance
evaluation and the programme identified from the standard list of training
topics. This should be submitted through respective GMs to Human
Resource before 10th May every year.
The quality, usefulness and the application of knowledge gained by the
training programme is evaluated using the development evaluation form.
This also provides an input for improvemet for training arrangement
Human Resources department is responsible for summarizing the training
needs obtained for each employee and preparing an annual training calendar
for each employee. HR has to prepare the plant annual training plan, budget
and schedule. This activity must be completed by mid of May each year in
order to be ready for budget approval process.
The general manager is authorized to revise the training schedule when
necessary and mange the training budget to ensure that the investment is
placed to the right subject to support company goals and business needs.
65
Skill Matrix
A skill matrix is prepared for the employees working in the shop floor. The
skill level of these employees is kept under check through this document.
The document helps in identifying the training needs of these employees and
accordingly the scheduling training programs is done to meet those needs
There are 4 skill levels
Level 1: Learner
At this level, a person can perform task only under supervision
Performance will be evaluated every 3 months
Level 2: Executive
At this level, a person can perform task independently but requires assistance
in decision making
Level 3: Excel
At this level, a person can perform task without supervision
Level 4: Preach
At this level, a person can perform task and train others
Training is provided depending upon the skill level possessed by the
employees. The training provided to a person at skill level 1 will be different
from the training provided to those at skill level 2. Training is an ongoing
process and it will be provided until the person reaches skill level 4.
Performance appraisal is conducted periodically and the skill matrix is
updated after every 3 months.
The Skill Matrix document is prepared by the immediate superior of the
employees whose skill level is being evaluated. The skill matrix shall be
submitted by the team leaders or departmental heads, as the case may be, for
66
the employees working in their departments, once in 6 months. Evaluation is

done through on the job observation, on the job training, subject knowledge
tests
Basis of comparison
a. Threshold requirements of the job
b. Target v/s Actual
Performance Evaluation Process
One of the core functions of HR department is performance evaluation for
all employees. The performance evaluation/appraisal process at BMW is
unbiased and is done once a year. This serves as the basis of wages, salary
and bonus increase and as well as to identify the training needs for the
forthcoming
year.
The
performance
appraisal
is
diagrammatically
represented below:
Process Step
Step 1
Set
Input
Plant Calendar
Schedule
for
Performance
Support
Mandatory
Mandatory
from
Concern
Documents
Standard timing
Tools
BMW
ed
specified in
Portfolio
Evaluation
Departm
portfolio round
website
Schedule,
ent
Output
Performance
Communicated
Evaluation
to concerned
Step 2
Portfolio
Round Process
BMW Portfolio
Concern
Evaluation Form
BMW
departments
Result of
principles and
ed
process sheets,
Portfolio
Evaluation
rules, Associate
Departm
Succession
website
from multiple
Model and
ent
Planning
perspective
Leadership
plan of future
Model
management
and expert
Step 3
Record of
Concern
Evaluation Form
BMW
talent
Result of
67
Performance
Evaluation
evidence of
ed
Key Performance
Portfolio
performance v/s
Departm
Indicators:
website
target, BMW
ent
Employee
Associate
Satisfaction,
Model,
Employee
Leadership
Performance
Model
Improvement,
Evaluation
Employee
Step 4
Result of
Concern
Consolidate the
Evaluation,
result
Plant Budget
and
develop a plan
for
Attrition
Evaluation Form
BMW
Summary of
ed
Portfolio
remuneration
Departm
website
and promotion
ent
proposal
individual
remuneration
and promotion
for approval
Step 5
Summary of
Concern
Evaluation form
Feedback
Approved
Obtain
Remuneration
ed
process sheet,
Form
Proposal
Approval
and promotion
Departm
Succession
proposal
Notification
ent
Concern
Planning
Employee
Feedback
New
Letter
ed
Information
Form
Remuneration
Step 6
Notification to
each individual
employee
on
the
of
result
Departm
ent
remuneration
The Appraisal of the people working in the shop floor takes place throughout
the year. The Target Process Management Sheet or the Performance Metrics
is used for the same.
68
The Appraisal for the people working in supervisory or managerial capacity,

that is, those who are not working on the shop floor, is conducted once a
year.
Pre dialogue is held between the appraisee and the appraiser. The meeting is
held to discuss about the actual achievements of the appraisee in comparison
with the set targets. Pre dialogue helps the appraisee in getting an idea of his/
her performance. The feedback after the performance appraisal process is
provided in written form to the appraisee.
The degree of feedback is 270. 360 degree feedback is not practiced in the
organization. The feedback from the subordinates is not obtained.
The scale used for feedback is a 5 point Likert Scale.
Level 1 and 2: Indicates that targets have not been achieved
Result: Further training is provided to them
Level 3: Indicates that target has been achieved
Result: Pay revisal
Level 4: Indicates that performance exceeds targets
Level 5: Indicates that performance is outstanding
The feedback from such appraisal is used for decisions relating to any of the
following:
Compensation- pay revisal
Succession planning
Training and development
Promotion
Job rotation
Career development
69
After the Performance Appraisal Process, the succession planning process

takes place. The process is explained below
Succession Planning Process

Process step
Input
Mandatory
Step 1
Organization
documents
Process
Development
chart,
Portfolio discussion
results, Business Evaluation
I category employees
Step 2
growth plan
Plant
Development Plan
Portfolio Performance
Employee data
Output
sheet, Identification of A, AD,
AE, AX, B, BD, BE, BX,
Agree and establish Development

individual
Plan
development plans
Step 3
Development
Process
Skill gap identified
Plan
Training
sheet, Training need assessment

need updated
assessment form
Compensation
BMW follows the Lead Policy for Compensation. It pays its employees
higher than the market rate. Since its the leading manufacturer of premium
segment automobiles it needs to recruit the best talent and therefore, lead
policy is adopted by BMW.
70
Pay mix of the employee comprises only of the fixed pay. Since BMW Plant
Chennai has been set up only 3 years ago, therefore, variable pay has not yet
been introduced in the company.
Performance based incentives include Bonus. Employees who deliver
outstanding performance are given bonus equal to 120% of the agreed bonus
at the time of joining the organization.
Benefits provided to the employees are as follows
Benefits
Details
Canteen
Vegetarian and Non Vegetarian, overtime food
Transport
Air conditioned cabs, tempo travel, BMW Car

travel provided to the General Managers and
Leave
Managing Director
10 statutory holidays, CL 12, EL 20 ,
Work wear
compensatory leave
Shirts, pants, socks, belts , shoes, t-shirts,
Celebrations
stitching provided by the company

Family day
Employee birthday
Cake, card
Diwali and Ayudh Pooja
Sweets
Insurance
Accident cover, life cover
Health
Free medical check up, First Aid, Vaccination
Insurance
provided on WHO Recommendation

Medical claim of Rs. 23 lakhs
5 lakh for employee, 5 lakh for spouse, 5lakh
each for 2 children, 3lakh for parents or inlaws
71
Accident cover
Amount which is 36 times of salary is paid to
Reimbursement
the employee
Telephone Bill
Mobile Phone Cost Reimbursement
Rs.
6000
reimbursed
to
the
managers,
Rs.10000 reimbursed to the General Managers
72
Employee engagement initiatives

GTMY- Glad to meet you
As a measure of employee engagement, every month a meeting is conducted
with the employees. The meeting is titled has Glad to meet you. Through
this meeting the employees can voice their concerns.
Objective is to find out the hygiene and motivating factor that helps retains
the employees in the company
Process Step
Input
Mandatory
Step 1
Documents
Feedback on issues GTMY Diary
Documentation of all issues raised
Meeting
received in previous
by employees, Feedback provided,
Employee once in meeting
with
solve the issues identified by
a month during employees,
employees
3rd or 4th of Month Guidelines
and
Policies
Previous Grievance GTMY Diary
Step 2
Analyzing
and Details
categorizing
the
points
Step 3
Output
Analytical Report
GTMY Diary
Analysis Report
Policy related decision
Analysis report to
be presented to
the
Human
Resources
Department
Step 4
Feedback
employees
Open
points
to policy
and GTMY Diary
Feedback on the open points
related
decisions
73
FISH- Fresh Ideas Start Here

The Process
Process Step
Step 1
To
Input
Support
Mandatory
Mandator
Output
FISH
from
All
Documents
FISH Guidelines
y Tools
Plant
Formation
department
weekly
the committee
meeting
establish Guidelines
FISH
Committee
of
minutes,
Obtain
approval
from
human
resources
Step 2
FISH
All
Implementatio
Guidelines
department
employees
of
FISH
system
Step 3
FISH
Suggestion
Guidelines
Panel
FISH Guidelines
department
Emails
FISH Guidelines
Communicatio
to
Suggestion
Received
form
suggestions
all
from employees
from
Step 4
employees
Accepted and
Evaluation
Suggestion
VPS
FISH Guidelines
GRID
of s
Rejected
suggestions
Step 5
Suggestion
All
Implementing
department
the suggestion
FISH Guidelines
GRID
FISH
Suggestion
on Direct
implementation
, Focused work
group and Task
Step 6
Suggestion
All
FISH Guidelines, GRID
Finalizing
department
VPS
recommendation
suggestions for
FISH
Force Team
on Awards , cash/
trophy
74
awards
The objective of F.I.S.H (Employee Suggestion Scheme) is to have

employee involvement in projects involving productivity improvement,
elimination of waste, environment improvement, quality improvement,
defect eradication, process improvement, ergonomics, workplace and safety
improvement
The scheme is applicable to all employees in Grade 1, 2 and 3.All
suggestions should be dropped in the suggestion box after the endorsement
by their respective supervisor in the prescribed form which will be available
with the respective team leaders and also available in soft copy format
Suggestion received in the suggestion box will be examined every week by
the panel consisting of representatives of VPS team, Manager Maintenance,
Plant Controller, General Manager Human Resources, General Manager
Logistics.
Suggestions should be original. There should be a tangible output from the
suggestion which would lead to improvement of the current situation. It
should be implementable and should result in the improvement of any of the
following:
Cost Saving / Revenue generation

Productivity improvement
Quality
Process time reduction
Line balancing
Environment and safety
Criteria for rejection

A suggestion will be rejected if one of the following is true:
75
Any complaint or grievance regarding salary, grades, promotion,

perquisites, working hours
A complaint without recommending a solution
A suggestion which is not specific or too general in nature
A repetition to a previous suggestion
Panel will evaluate all suggestion and accepted suggestions will be ranked as
mentioned in the grid below
The Grid
Impact
Ease
of High
Implementation
High
Medium
Low
1st
2nd
7th
Medium
Low
3rd
4th
8th
5th
6th
9th
Based on the ranking panel will decide on the following

Direct implementation
Refer to the Focused Work Group (FWG)
Form Task Force Team (TFT)
Criteria for referring to FWG
The suggestion could have multiple solutions and one has to debate about
the best solution. A detailed discussion with the suggestion generator and
others shall be held. FWG will come out as the best solution to the given
problem
Criteria for being selected for TFT
The suggestion could require further data collection for the given solution.
The suggestion needs to be validated for the feasibility of implementation or
its impact. TFT will come out with an implementation plan for the solution
76
All accepted suggestions will be awarded as mentioned below

Ranking as per Grid
1 to 4
5,6
7,8
9
Award
Rs, 200
Rs. 150
Rs. 100
Rs. 50
Criteria for best suggestion

The suggestion should fall on the grid ranking 1 to 5. Best suggestion of the
month will be given a trophy.
FISH Form
Basic idea ____________________________________________________________
_____________________________________________________________________
Applicant
Name
Surname
Employee no. Department

code
Cost center
Other details
(if any)
A. Description _______________________________________________________
Place of improvement ______________________________________________
Current situation __________________________________________________
_______________________________________________________________
Improvement / way of solution / advantage _____________________________
_______________________________________________________________
________________________________________________________________
B. Applicant Sign off
Applicant signature
________________
C.
1.
2.
3.
Department code
_____________
Date
_______
Primary consideration by direct supervisor

Improvement affect to Product / Process / Management System / Facilities
Kind of Improvement Environmental / Quality / Work safety / External Customer
Cost saving opportunity Direct benefit / Indirect benefit / Not cost saving project / need
investment
77
4. Job related Directly related / Indirectly related / not related

5. Assignment Direct assignment / Indirect assignment / not own assignment
6. Judgement Accept to Proceed / Need consultance / Reject
Comments ___________________________________________________________
____________________________________________________________________
Name of the Direct Supervisor_________________
Signature of Direct Supervisor_________________
Department Code __________________________
Date ____________________________________
Employee Satisfaction Survey

Process step
Step 1
Input
Mandatory
Mandatory
Output
Required
documents
PIN Letter
tools
Circular
Target date of
Inform the schedule of completion date

employee
satisfaction from BMW AG
survey to all employee

Step 2
Website,
Provide an overview on standard formats

the
completion
online
BMW and/or
Survey
Understand the
Tools
purpose
survey
satisfaction survey to questions,

employee
understanding of
the need for a
78
of
survey,
understanding of
Step 3
time constraints
Website,
Conduct the survey
standard formats
Step 4
and/or questions
Survey
report Survey
Create
improvement from BMW AG
action
plans
Website
Survey
report
from BMW AG
Report
List
of Implementation
points
of action plan
and
implement
Step 5
Survey
Periodically review the and
report Survey
approved Report
List
of Ensure
points
sustainability of
implementation of the action plan
the change
action plan
Ensuring Health and safety

Process step
Step 1
Input
Mandatory
Mandatory
Output
Organization
documents
tools
BMW
Policy, H&S Committee Health
and
Communication Policy, Targets, H&S Manual
Meeting,
of
Communication
Committee
Meeting
established
Health Health Impact of
related
the Organization
requirements
Step 2
Activities
H&S Manual, BMW
Define
and BMW
Document
Roles
Responsibilities
of
Policy H&S Manual
and Procedures,
and Target
Policy, Meeting
of
Plant,
the
Health
Discussion
Plant Safety
and Employee
Responsibilities,
Defined
the
relevant
job
description
the Road map
Organization
implementing
79
Health
Step 3
Health
Identification of Safety
and Previous
Health
road Performance
Safety
and Personnel
manual, trained in Health
Training Needs map,
appraisal,
Training
and Train the
Training
Materials
personnel
Step 4
Health
Schedule
and Hazard
H&S Manual
requirement
Identified
Prepare Hazard Safety
Road Identification
Hazards
and
H&S sheet
activity
Risk map,
Assessment
per
manual,
Procedure and Planning

Identifying and Process,
Accessing
the Statutory Check
Legal and other list

Health
Requirements
Step 5
Identified
Documented
Hazards
objectives
each
and activity
Hazard
H&S Manual
per Identification
Listed,
quantified
sheet
and
communicated
function
hazards.
and level within

the
organization
Step 6
Identify
Listed,
the quantified
Management
hazards.
Hazard
H&S Manual
Identified
Identification
Management
sheet
Programmes as
Programmes to
per the Hazards
achieve
identified
the
Objectives
Step 7
Accident
Accident
Maintaining
Register
Register,
records
on
Accidents,
Aid
H&S Manual
First
Treatment
Register
Data
on
Accidents,
Incidents,
conformance
80
Non
Incidents, Non
and action plan
conformance
and
corrective
and preventive
action
Step 8
Identified
Implement the Management
Management
Programme
agreed
Programmes and check list
Management
Target date
H&S Manual
Agreed
Implemented
targets
Programme
81
and
Ensuring Safety
Process step
Step 1
Formation
Health
Input
Mandatory
Organization
documents
tools
BMW
of Policy, Targets, H&S Manual

and Health
and
Safety
Safety Impact of
Committee
the Organization
Step 2
Activities
H&S Manual, BMW
Define
and BMW
Document
Roles
Meeting,
Responsibilities
Plant,
of
and
Communication
Committee
Meeting
established
Policy, Meeting
Policy H&S Manual
Output
Plant Safety
and Employee
Discussion
and Procedures,
and Target
of
Mandatory
the
Health
Responsibilities,
Defined
the
relevant
job
description
the and Safety Road
Organization
map
implementing
Health
and
Safety
Step 3
Health
Identification
Safety
of
Training map,
and Previous
road Performance
Health
Safety
and Personnel trained

manual, in
Health
appraisal,
Training
Safety
Materials
requirement
Needs
and
Training
Train
the
Schedule
personnel
82
and
Step 4
Health
Prepare
Safety
Hazard
and Hazard
manual,
Assessment
Planning
Identified
Road Identification
Hazards
H&S sheet
activity
and map,
Risk
H&S Manual
per
Procedure and Process,

Identifying and Statutory Check
Accessing
the list
Legal and other

Health
Safety
Requirements
Step 5
Identified
Documented
Hazards
objectives and activity

each
Hazard
H&S Manual
per Identification
Listed,
quantified
sheet
and
communicated
function
hazards.
and level within

the
organization
Step 6
Identify
Listed,
the quantified
Management
hazards.
Hazard
H&S Manual
Identified
Identification
Management
sheet
Programmes
as
Programmes to
per the Hazards
achieve
identified
the
Objectives
Step 8
Identified
Implement the Management
Management
H&S Manual
Programme
agreed
Programmes and check list
Management
Target date
Agreed
and
Implemented
targets
Programme
Process step
Input
Mandatory
Mandatory tools
Output
documents
83
Step 1
Organization
Formation
Health
BMW
of Policy, Targets, H&S Manual

and Health
and
Safety
Safety Impact of
Committee
the Organization
Step 2
Activities
H&S Manual, BMW
Define
and BMW
Document
Roles
Meeting,
Communication
Committee
Meeting
established
Policy, Meeting
Policy H&S Manual
Responsibilities
Plant,
of
and
Plant Safety
and Employee
Discussion
and Procedures,
and Target
of
the
Health
Responsibilities,
Defined
the
relevant
job
description
the and Safety Road
Organization
map
implementing
Health
and
Safety
Step 3
Health
Identification
Safety
of
and Previous
road Performance
Training map,
Materials
requirement
H&S Manual
Identified
Train
the
Schedule
and
Risk
Procedure and
Identifying and
the
Legal and other

Health
and Hazard
Safety
Road Identification
Hazards
map,
H&S sheet
activity
manual,
Assessment
Accessing
Health
Safety
Training
Hazard
manual, in
Training
and
Health
Safety
and Personnel trained
appraisal,
Needs
personnel
Step 4
Prepare
Health
Planning
Process,
Statutory Check
list
Safety
84
and
per
Requirements
Key Learning during Summer Internship

During my summer internship in BMW India Pvt. Limited from the 1 st of
June 2011 to the 29th of July 2011, I learned a couple of new things in the
company. They are as follows:1. How Recruitment & Selection process takes place.
2. What necessary documents are required during Recruitments
Process.
3. How Induction process for New Employee takes place.
4. Understanding the Importance various documents /Handling
of Confidential Documents.
5. Handling Employee Details.
6. How to create MPM-Sheet (Management Process Model).
7. Brief knowledge about Competency Skill Matrix & Training
Calendar.
8. Communicating with various departments.
85
The work culture here is very friendly and co-operative. It is very easy to go
and clarify your doubts with senior executive in the organization. People in
every department are easily accessible to help you find a solution to your
problems.
BIBLIOGRAPHY
www.article13.com
BMW PLANT CHENNAI
www.bmw.in
www.bmw.ag
www.slideshare.com
wps.pearsoned.co.uk
www.google.com
BMW Annual Report
86
Case Study: BMW

In 2006 BMW Group confirmed its position as the world's leading premium
manufacturer in the automobile industry with record sales, and profits
exceeding 4 billion. Since its inception, the BMW brand has stood for one
thing: sheer driving pleasure. For many BMW drivers, owning a BMW has
symbolic meaning of quality, efficiency and engineering expertise. BMWs
long-standing marketing message has been simply the ultimate driving
machine, which is now 33 years old.
In 2000, BMW linked suggested future segments with the redesigns to its
product line. The new cars reflected the predicted changes in consumer tastes
and behaviour which they had found through commissioned consumer
research. According to the then Chief Executive. Helmut Panke The
product initiative allows us to be focused on market segments that we see
developing in the future. Tastes are changing. Customers are slicing the
market into more focused pieces. It's becoming more differentiated. The
market is shifting. But satisfying the market's demand for new niche
products is a strategic risk anyone in the industry has to take. To be
successful, you have to fulfill 100% percent of customers' expectations.
Matching future segmentation research to product development or product or
line extensions can be difficult. There are strategies to execute line
extensions without confusing, and losing, your customers (Trout, 2005).
What these strategies have in common is rigorous attention to the brand's
position matched to clear understanding of future customers needs.
BMW regularly undertakes research into their customers occupations and
hobbies. The information is used across all areas of the business, from the
design and development of the cars, through their premium pricing and all
87
elements of the marketing mix. In the late 1990s, BMW sensed the attitudes
and values of luxury-car buyers were changing with more emphasis on
family and leisure time. These new upscale consumers included aging baby
boomers, yuppies who had started families, and liberal-minded wealthy
professionals. Research indicated they would want more vehicle choices and
more eye-catching designs to suit their changing lifestyles. With its future at
stake, BMW made an ambitious gamble: It invested heavily on broadening
its single, narrow product line into a whole spectrum of upscale cars. It also
acquired Rolls Royce and re-launched the Mini, the British cult car of the
60s. It put the BMW brand on sport-utility vehicles, convertibles, roadsters
and, most recently, a compact car.
BMW is very clear about its targeting. It only targets the premium-priced
cars and does not strive to compete in every segment of the auto industry. It
avoids the high-volume market of middle-of-the-road vehicles and focuses
strictly on the luxury sector. The Mini, for example, is smaller than a Honda
Civic, but is priced at about $3,000 (2,300) more. This strategy has made
BMW, despite its relatively small size, one of the worlds most profitable car
makers.
SIGMA was the company charged with researching the market. Sigma: a
German research firm has pioneered a method of predicting shifts in
consumer tastes. SIGMA looks beyond demographics such as age and
income. It often interviews consumers for hours and even photographs their
homes and offices to build a picture of the mindset of different consumers.
Sigma predictions were that there would be significant expansion of the
luxury car market.
What Sigmas research found was the Ive made it attitude of the 1990s
BMW driver, what they called the social climbers was now changing to a
more family friendly group. They foresaw that as the yuppies declined, other
groups with different upscale mindsets would increase in number. They
suggested four segments going forward and BMW reacted to the new
segments by introducing a car to match 3 of them:
1. Upper liberals includes socially conscious, open-minded
professionals often with families who were successful in the 90s.
They were predominantly Volvos, Saabs and SUVs drivers
What did BMW do? For upper liberals, BMW added the X5. This is a
SUV that the company prefers to call a sports activity vehicle, in a
bid to appeal to this groups active lifestyle.
2. Post-moderns are high-earning innovators like architects,
entrepreneurs and artists. They are highly individualistic and
gravitate toward head-turners like convertibles and roadsters.
88
3. Upper conservative are wealthy, traditional thinkers. Theyve never

been that interested in driving sporty cars like BMWs, and consider
luxury and comfort over driving performance. They would normally
purchase the Mercedes S-class and Jaguars as they strive for elegance
and sophistication.
What did BMW do? BMW-developed the Rolls Royce, Phantom,
which sells for about $325,000, and is intended for the very
wealthiest upper conservatives.
4. Modern mainstream. These are family-oriented and active and
normally purchase the near-premium brands like Honda or
Volkswagen: BMWs were considered too expensive for them. But
increasing numbers of them are looking to move up above the middle
class and are open to luxury-brand cars.
89

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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE

PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN

TALENT ACQUSITION AND TALENT DEVELOPMENT

Mrs. APARAJITA DAS GUPTA

BMW PLANT CHENNAI

AMITY GLOBAL BUSINESS

This is to certify that Ms. Anushree Kaushal a student of Post Graduate

Ms. Aparajita Das Gupta

Ms. Anushree Kaushal

I express my sincere gratitude to my industry guide Mr. G. Ramalingam,

Also, I am thankful to my faculty guide Ms. Aparajita Das Gupta of my institute,

BMW is one of the world's leading manufacturers of automobiles, including

Recruitment, Training and Development to name a few. Since BMW

This training has been a means to understand the functioning of an

An Overview of the Indian Automobile Industry

At present, about 75 percent of Indias automobile industry is made up by

As of 2010, India is home to 40 million passenger vehicles and more than

Splash (Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small car (Bajai

Top Automobile Companies in India

Mahindra & Mahindra:

SWOT Analysis of Indian Automobile Industry

Domestic Market is large

Government provides monetary

government increase the cost of

Reduced Labor cost

Low investments in Research and

Reduction in Excise duty

Rural demand is rising

Income level is at a constant

Increasing rates of interest

Too much competition

Rising cost of raw materials

Indian Luxury Car Market An Insight

year. And, of course, theres jaw dropping

Uniqueness through diversity, Leadership, taking Risk, courteous

Research and Development plant in World

Production and Assembly plants in world

Cars sold in Region

b. Parts Warehouse ; Mumbai

Chennai has a developed infrastructure and it benefits from having

Many potential production locations were analyzed for setting up the

Sales and Service Network

BMW India is present at 16 locations in the Indian market; BMW Studio

(Ahmedabad), Platino Classic (Kochi), Kun Exclusive (Coimbatore) and

BMW 3 Series (330i, 320i, 320d Corporate Edition and 320d

BMW 5 Series (523i, 520d, 525d and 530d)

BMW 7 Series (to be launched in December 2011)

MINI (to be launched)

Rolls-Royce (to be launched)

BMW 5 Series (535i CBU)

BMW 5 Series Gran Turismo (Limited Edition)

BMW 6 Series (650i Coup and 650i Convertible)

BMW 7 Series (740Li, 750Li, 760Li and 730Ld)

BMW X3 (X3 xDrive25i, X3 xDrive20d)

BMW X5 (X5 xDrive48i, X5 xDrive30d and X5 xDrive30d

BMW X6 (X6 xDrive50i and X6 xDrive30d)

BMW M3 (Coup and Convertible)

BMW M6 (Coup and Convertible)

BMW Z4 (sDrive35i Roadster)

International Purchase Office

will explore procurement of production material (components) as well as IT

Basic principles followed by BMW

To understand the organization better, a consisted version of the organization