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HRM Practices

CUMI’s policy on Human Resources Planning

CUMI will endeavour to ensure effective staffing, the right person for the right position. We would also attempt to develop and optimise the internal human resources and its potential.

Recruitment Policy	Policy on Career Planning
CUMI will recruit based on integrity, competency and the ability to work in a team. We would also endeavour to select individuals with leadership potential, customer orientation and quality focus. Above all, we also take the Value-fit of the individual with the group into consideration.	CUMI believes that it is our responsibility to develop employees to their fullest potential so that future challenges could be met with existing talents.

Succession Planning

CUMI identifies its potential employees who can generate operational and cultural excellence in work place. They are called as Change Managers. The selection of change managers is done through

Assessments
360 Degree Profiling
- Behavioral/Leadership Styles
Functional Head’s Feedback
Identified Areas - Operational / Cultural Excellence

Development Plan

The 3 Cs of Retention of Talent at CUMI.

Challenge
Compensate
Competency

Performance Management System

The Performance Management System is based on the Balance Score Card.

The Balance Score Card is the culmination of the Business plan and is the complete strategic map which identifies the strategic indicators and thrust areas of the Business. This Balance Score Card is the authentic document approved by the Murugappa Corporate Board.
Based on the Approved Balance Score Card the functional score cards are evolved.
The monthly plans are then evolved from the above. These plans are reviewed on a monthly basis against the plan.
The feedback and the learnings from the monthly reviews and course corrections are incorporated.
The Performance Management System is on line with Policy Deployment. The steps involved in Policy Deployment or Hoshin Kanri is explained in the table.
The system is designed to capture the objectives and measures in the Policy Deployment table drawn up for the current year.
The objectives and measures are to be clear cut, specific and quantifiable
The appraiser and appraisee will jointly discuss and arrive at the best regrouping possible of the objectives.
In the discussions, the Appraiser and Appraisee agree on action plans including resources and support. This is summarised and signed off by both the appraiser & appraisee.
A review mechanism is also built in the system to ensure frequent monitoring of objectives and course correction, if necessary.
The review calendar is drawn up to regularly monitor the progress of the objectives and provide resources if any on the part of the appraisee.
Control charts are maintained at agreed frequency and reviewed

Policy Deployment (Hoshin Kanri)

Evolve Long Term Policy
Identify linking long term strategy
Define objectives (what)
Clarify methods (how)
Pick Control Charts (visual charts)
Deploy
Establish Review Mechanism
Corrective Steps

Compensation

CUMI believes that compensation should be based on the performance of the individual and the individual performance is classified through a quantifiable / objective measure.
The performance rating will be:

Exceptional Contribution
Significant Contribution
Good Contribution
Not meeting the requirements
Not suitable

Performance Linked Incentive

The incentive, a part of the compensation and linked to Balance Score Card helped CUMI, initiate the process of :

Rewarding stretch, effort and risk taking
Encouraging inter-functional and organisational perspective
Providing thrust to sustainable processes
Giving impetus to innovation and learning

Incentive is an important and integral part of the compensation package. It would be based only on the Achievement of Company/SBU Score Card, with weightages specified for each perspective.

Rewards & Recognition

CUMI has evolved a rewards and recognition scheme

Kaizen Scheme : The objective of this scheme is to encourage and recognize management staff for their participation & contribution in Work/ Method/Productivity improvement and cost reduction exercises which benefit the organisation.

This scheme is applicable to all Management Staff upto MG6 including Management Trainees category of CUMI for their individual contribution.

Suggestion Scheme: The objective of the Suggestion scheme is to encourage and recognize employees for their participation & contribution in Work/ Method/Productivity improvement and cost reduction exercises which benefit the organisation. This scheme is applicable to all Operatives of CUMI for their individual contribution.

Areas of suggestion : The suggestion shall be on the following areas :

To improve production / productivity
New methods / devices improvement for simplification.
To improve quality of product / maintenance / service
To improve general upkeep & cleanliness
To eliminate wasteful practices
To eliminate pilferage of material
To improve process
To reduce cost.

Q-Man Award : The Objective is to encourage and recognize employees for their participation & contribution in Work/ Method/ Productivity improvement and cost reduction exercises which benefit the organisation. This is applicable to all Operatives and Staff of CUMI for their individual contribution.

Best Sales Engineer Award : The objective of this scheme is to reward Sales engineer for their good work. This scheme is applicable to all Sales Engineer (Supervisory staff & Management staff) who have performed exceptionally well over & above their PD measures assigned to them in his or her area of work or outside their scope of work shall be eligible for the scheme.

Muthiah Memorial Best Performance Award : The objective of this award is to encourage and recognize employees for their contribution in Breakthrough activities which benefits the organisation. This Award is applicable to all employees in the Management and unionised cadres.