1. PROJECT REPORT
ON
EMPLOYER BRANDING
Submitted to:-
Ms. Sashmita Singh
(Training Coordinator)
Department of MBA
Sri Ramswaroop Memorial College of
Engineering and Management,
LUCKNOW
Submitted by:-
Neeraj Tripathi
Sri Ramswaroop Memorial College
of Engineering and Management,
LUCKNOW
AS DONE AT
HINDALCO INDUSTRIES LTD.
Renukoot
2. Certificate
I certify that the Project Report entitled “Employer Branding at Hindalco”
is the result of the bonafide study carried out by Neeraj Tripathi under my
Guidance and supervision and that no part of the report has been submitted in
any other form or for any other degree.
Ms. Sashmita Singh
( TRAINING COORDINATOR )
Department of MBA
Shri Ramswaroop Memorial College
of Engineering and Management
LUCKNOW.
2
3. Declaration
I hereby declare that this project titled “EMPLOYER BRANDING” at Hindalco Ind. Ltd., has
been completed in Hindalco Industries Limited, Renukoot. It is my own and original work.
This is a project report submitted in partial fulfillment of the MBA. It has never been
submitted nor published anywhere else before.
The above statement is true to the best of my knowledge.
Neeraj tripathi
3
4. Contents
• Preface
• Acknowledgement
• Research methodology
• India ‘s first global corporation
• Landmarks
• Hindalco industries ltd ( An emerging regional metal major)
• Renupower –an introduction
• Coal transport system
• Environment and safety
• Caring the environment
• Alumina profile
• Application and product
• Benefits
• Properties of aluminum
• Alloys
• Market structure
• Outlook
• Potential
• Employer branding
• Analysis and interpretation.
• Graduate engineer trainee questionnaire.
• External public questionnaire
• Employees questionnaire
• Swot analysis
• Annexure
• Bibliography
4
5. Diagrams & Graphs
Reduction plant – Hindalco’s alumina
Fully integrated operation
process flow chart refinery process
renukoot
Map Creating the right mix Market structure of
alumina
The Big Ten
5
8. Preface
The summer Training is an integral part of curriculum. During the training, a student gets
an opportunity to understand the practical aspect of theory. Training makes the concept
clear.
This project report is the outcome of the summer training that I have undergone at
Hindalco industries Limited for the partial Fulfillment of Masters of business
administration.
The topic allotted by the company to me is “Employer branding”.
I have tried my level best to make a good report. However, no one can claim for
perfection entirely. So I apologize for the discrepancy, if any crept in.
Preparation of project requires perseverance, initiatives, proper guidance and direction.
So it is mandatory to take the aid of various departments.
Actually a project is a summarized form of the following seven activities.
oPlanning
oResource Collection
oOrganizing
oJoint Efforts
oEfficiency
oCommunication
oTransparency
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9. Acknowledgement
Its intended a matter of proud and privilege that Shri Ramswaroop College Of Engineering
And Management offered me the opportunity of undergoing my industrial management
training at India's most esteemed organization:
HINDALCO INDUSTRIES LIMITED RENUKOOT.
The schedule of my training includes the study of the functioning of various department of
the company, emphasizing on human recourse where I got opportunity of undertaking a
human recourse research study on:
“Employer branding”
I would to like to express my sincere thanks to Mr. GUNJAN TIWARI, H.R. Assistant
General Manager, HINDALCO who gave me insightful tips and excellent suggestions
which gave this project a fine tuning.
In preparing this project, I want to give special acknowledgement to Mr. GUNJAN TIWARI
who not only guide me, but added many examples and ideas to improve this project. He is
my real guide and symbol of my ideas am highly grateful to all my respected faculty staff
and training and placement officer of the institute who always inspired and motivated me
for giving such a constructive shape to this project. At the end ,I faithfully record that I'
have devoted the best of my knowledge, effort and beliefs in the preparation of this
project.
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10. Research methodology
Objective :-
The research objective was to do serve on Employer Branding in Hindalco. The research
conducted was descriptive in nature.
Sample design :-
The sample was conducted in which the respondent were the Employee , Graduate Engineer
trainee and Students.
• Area selected :- the survey was conducted in Renukoot town .
• Sample unit :- each respondent was considered as a single unit in survey.
Collection of data :-
The data that are used for survey was primary data. That means I had used first hand data.
The method , which I used for collecting the data was questionnaire method. I asked
questions related to the problem and I got the feedback through the questionnaire.
Scope :-
The scope of the study is restricted to the people within the Renukoot . So both quantitative
data were applied in the study.
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11. India’s first global corporation
GLOBAL VISION,INDIAN VALUES
A US $28 billion corporation with a market cap of US $31.5 billion and in the league of fortune
500, the aditya birla group is anchored by an extraordinary force of 100,000 employees,
belonging to 25 different nationalities. In India, the group has been adjudged "the best
employer in India and among the top 20 in Asia" by the Hewitt-economic times and wall street
journal study 2007. Over 50 per cent of its revenues flow from its overseas operations.
The group operates in 20 countries: India, Thailand, Laos, Indonesia, Philippines, Egypt,
China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
Switzerland, Malaysia and Korea.
Globally the Aditya Birla Group is:
A metals powerhouse, among the world's most cost-efficient aluminum and copper
producers. Hindalco-Novelis from its fold, is a Fortune 500 company. It is the largest
aluminum rolling company. It is one of the three biggest producers of primary aluminum in
Asia, with the largest single location copper smelter.
• No.1 in viscose staple fibre
• The fourth largest producer of insulators
• The fourth largest producer of carbon black
• The 11th largest cement producer globally
• Among the world's top 15 BPO companies and among India's top three
• Among the best energy efficient fertilizer plants
11
12. In India :-
o A premier branded garments player
o The second largest player in viscose filament yarn
o The second largest in the chlor-alkali sector
o Among the top five mobile telephony companies
o A leading player in life insurance and asset management
o Among the top three supermarket chains in the retail business
12
13. landmarks
The Aditya Birla Group, India's first multinational corporation, traces its origins back to the tiny
village of Pilani in the Rajasthan desert, where Seth Shiv Narayan Birla started cotton trading
operations in 1857. Today, the Group's footprint extends to 20 countries and its revenues are
US$ 28 billion. We retrace the highlights of this remarkable journey, starting from the present.
2009:-
•The Aditya Birla Group of companies donate Baht 3.5 million for housing in Chiang Mai,
Thailand
2008:-
•Aditya Birla Group contributed Rs. 5 crore towards flood relief measures in Orissa
2007:-
• India Today Group's Readers Digest Gold Award 2007 in recognition of the work that truly
exemplifies the highest values of society as well as those of Reader's Digest at the
Pegasus Corporate Social Responsibility Awards
• In May 2007, Novelis became a Hindalco subsidiary with the completion of the acquisition
process. The transaction makes Hindalco the world's largest aluminum rolling company and
one of the biggest producers of primary aluminum in Asia, as well as being India's leading
copper producer.
• Group was declared the “Best Employer” in 2007 by the Hewitt / Economic Times / Wall
Street Study.
2006:-
• Hindalco in a joint venture with Almex USA Inc.
• Trans Works Information Services announces success of bid to acquire Minacs Worldwide
• Grasim Industries Limited, India; Thai Rayon Public Company Limited, Thailand and P.T.
Indo Bharat Rayon, Indonesia form a JV with Hubei Jing Wei Chemical Fiber Company,
China, for VSF.
13
14. 2005:-
• Indian Rayon re-christened as Aditya Birla Nuvo.
• Aditya Birla Group to set up a world-class Aluminium project in Orissa.
• The Aditya Birla Group signs a framework agreement to acquire St Anne Nackawic Pulp
Mill, Canada
2004:-
• Board reconstituted with Mr. Kumar Mangalam Birla taking over as Chairman.
• Completion of the implementation process to demerge the cement business of L&T and
completion of open offer by Grasim, with the latter acquiring controlling stake in the newly
formed company UltraTech.
• Grasim, Nagda, received the FICCI Annual Award 2003-2004 in
recognition of corporate initiaitve in rural development.
• Bihar Caustic and Chemicals Ltd., Rehla, Jharkhand, has received the
FICCI Annual Award 2003-2004 in recognition of corporate initiative in family welfare.
• Hindalco recieves India CFO Award 2004 for excellence in finance in a large corporate.
• Scheme of Arrangement announced to merge Indal with Hindalco.
• Indian Rayon completes its brownfield expansion of 40,000 TPA at Hi-Tech Carbon, Gummidipundi,
taking total capacity to 1,60,000 TPA.
• Deming Award for Indo Gulf.
• Indal wins FICCI Award 2002-2003 for 'Corporate Initiative in Rural Development'.
14
15. 2003:-
• Mr. Kumar Mangalam Birla, Chairman of the Group, is selected as Business India's
Businessman of the Year - 2003.
• Mr. Kumar Mangalam Birla is selected as The Economic Times' Business Leader of the
year.
• The Group is ranked 16th in India's first ever survey of 'Great places to work in', published
in Business World magazine. The Group's joint venture concern, Birla Sun Life Insurance,
is ranked 9th in the same study.
• The Group is ranked 20th in a study on the 'Best Employers in India', conducted by Hewitt
Associates and Business Today.
• Hindalco receives the Asian CSR Award for its "Rural Poverty Allevation Programme". The
Asian CSR Awards are Asia's premier awards programme on Corporate Social
Responsibility.
• The Group acquires the Mount Gordon Copper mines in Australia, another strategic step in
becoming a globally competitive copper player.
• Liaoning Birla Carbon, the Group's first carbon black company in China, is incorporated.
• Indian Rayon acquires TransWorks, a leading Indian ITES / BPO company.
• The board of engineering major Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (Cem Co), in which L&T will retain 20 per cent of
its equity with the balance to be distributed to their shareholders in proportion to their
shareholding in L&T. As a consequence, Grasim to acquire an 8.5 per cent equity stake
from L&T and then make an open offer for 30 per cent of the equity of CemCo, to acquire
management control of CemCo.
15
16. • Indian Rayon formally launches its insulators joint venture with NGK Insulators Ltd., Japan,
christening it as "Birla NGK Insulators Private Limited.
• Birla Copper, a strategic business unit of Hindalco, is accorded London Metal Exchange
(LME) registration. Its copper cathodes are approved as 'Grade A' copper brand by LME.
2002:-
• The Grasim board approves an open offer for purchase of up to 20 per cent of the equity of
L&T, in accordance with the provisions and guidelines issued by the Securities & Exchange
Board of India Regulations, 1997.
• Grasim increases stake in L&T to 14.15 per cent (351.84 lakh shares).
• Landmark corporate restructuring of Hindalco and IndoGulf. The fertiliser business of
IndoGulf to be demerged into a separate company called Indo Gulf Fertilisers. Indo Gulf's
copper business to be merged with Hindalco, creating a non-ferrous metals powerhouse.
• Grasim divests its Gwalior unit to Melodeon Exports Limited, and consolidates textile
operations at a single location in Bhiwani, MP, which will manufacture both 'Grasim' and
'Graviera' brands.
• PSI Data Systems acquires Birla Technologies Ltd, bringing the Group IT services business
under one umbrella.
• Indal acquires a controlling stake in Anapurna Foils Ltd (AFL), to augment its position in the
foil and packaging sectors. Subsequently AFL is merged with Indal.
• The Group receives The Economic Times' "Corporate Citizen" of the year award.
16
17. 2001:-
• Grasim acquires 2.50 crore shares -- representing just over 10 per cent of the equity -- in
L&T from Reliance Industries Ltd.
• Birla Consultancy & Software Services spun off; becomes a separate entity called Birla
Technologies Ltd.
• Indian Rayon acquires a stake in PSI Data Systems, in one of the largest cash
transactions in the Indian technology sector.
• Grasim closes its pulp plant at Mavoor as a part of its restructuring initiatives.
1999:-
• A joint venture with financial services major Sun Life of Canada is inked, as part of the
overall restructuring of the Group's financial services business.
1998:-
• The Group forms a 50:50 joint venture company with Tembec Inc. of Canada, called A.V.
Cell Inc., to supply pulp for the Group's VSF operations.
• Grasim acquires Dharani Cement and Shree Digvijay Cement to consolidate the group's
leadership position in cement.
• The cement businesses of Indian Rayon and Grasim are consolidated into a single
division of Grasim – the biggest restructuring ever by any corporate entity in India.
• The Group forays into copper with the commissioning of Indo Gulf's copper smelter – the
largest of its kind in India.
• Thai Organic Chemicals begins commercial operations of Chlor-Alkali and
Epichlorohydrin.
17
18. 1996:-
• To honour the memory of the late Aditya Birla, a new corporate logo – Aditya, the rising sun
– is launched.
• All group companies are consolidated under the umbrella of the Aditya Birla Group, led by
Mr. Kumar Mangalam Birla.
• P.T. Indo Liberty Textiles is incorporated to manufacture yarn in Indonesia.
1995:-
• The Group enters the telecommunications sector through a joint venture with AT&T (USA).
• Thai Sulphites & Chemicals is incorporated to manufacture sodium sulphite and sodium
metabisulphite.
1994:-
• The Birla Growth Fund is renamed Birla Global Finance Limited, as its span of operations
expands.
• Alexandria Carbon Black, the Group's first joint venture with the Egyptian government, is
established.
1992:-
• Thai Epoxy and Allied Products commences production of Epoxy Resins in Thailand.
1991:-
• Pan Century Oleo chemicals commences production of fatty acids and glycerin in Malaysia.
18
19. 1990:-
• Mr Kumar Mangalam Birla gets actively involved in the Group's operations.
1989:-
• Thai Peroxide commences manufacturing of hygrogen peroxide solutions in Thailand.
1988:-
• The government liberalises the petroleum industry. The Aditya Birla Group enters into a
joint venture with Hindustan Petroleum Corporation Ltd to set up a three-million- tonne
refinery, Mangalore Refineries and Petrochemicals Ltd (MRPL), at Mangalore, Karnataka.
1987 :-
• Indian Rayon is renamed as Indian Rayon and Industries Limited (IRIL), to reflect its wide
horizon of activities.
• Thai Acrylic Fibre is incorporated to produce fibre and tow.
1986:-
• The Birla Growth Fund is set up to finance industrial equipment, plant and machinery and
consumer durables, as well as for stock market operations.
1985 :-
• India's first gas-based fertiliser plant in the private sector – IndoGulf – goes on stream at
Jagdishpur, UP.
1984:-
• Thai Polyphosphates and Chemicals commences production of sodium phosphates in
Thailand.
19
20. 1982 :-
• P.T Indo Bharat Rayon is established. It is the first producer of Viscose Staple Fibre in
Indonesia.
1978:-
• Thai Carbon Black, the Group's first carbon black company is incorporated in Thailand.
1977 :-
• Pan Century Edible Oils is incorporated in Malaysia, going on to become the world's largest
single-location palm oil refinery.
1975 :-
• The Indo Phil Group of companies, the first Indo-Filipino joint venture commences
production of spun yarn.
1974:-
• Thai Rayon, the Group's Viscose Rayon Staple Fibre business is incorporated in Thailand.
1973:-
• P.T. Elegant Textiles is established to manufacture spun yarn. It marks the Group's first
venture in Indonesia.
1969 :-
• Aditya Birla sets up Indo-Thai Synthetics Company Ltd, the group's first overseas company.
1967:-
• Grasim is incorporated. It commences operations with a small rayon weaving unit at
Gwalior, MP.
20
21. 1966 :-
• Hindalco is incorporated.
1965:-
• Hindalco commences production at its aluminium complex at Renukoot, UP.
1962:-
• Aditya Birla, grandson of the legendary Shriyut Ghanshyamdas Birla, starts the Eastern
Spinning Mills & Industries.
1958:-
• The Indian Rayon Corporation Ltd is acquired.
1947 :-
• Hindalco sets up a captive power plant at Renusagar - a significant strategic move.
1919 :-
• Shriyut Ghanshyamdas Birla, grandson of Seth Shiv Narayan Birla, sets up the first Birla
jute mill, marking his entry into the manufacturing sector. Rapid business expansion
follows.
1857:-
•The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla – cotton
21
23. Investment highlights
o Domestic market leader
o Globally competitive cost structure
o Significant strategic strengths backing benchmark
efficiencies
o Entering higher growth trajectory with sustainable growth
momentum
o Valuations yet to reflect the changing growth profile
23
24. Bauxite mines
Power station
E Extrusion plant
s Alumina Smelter
RAlumina Refinery
R R
s
F s
R
W F
F
J
s
R
s
E
Copper
Aluminu
smelter Foils Extrusio Alumina Rolling Wheels Bauxite Power Coal
m
,refinery plant n plant refinery mill plant mines station mines
smelter
& jetty
s F E R R W B 24
25. Organizational profile
BACKGROUND OF THE UNIT – HINDALCO INDUSTRIES LIMITED,
RENUKOOT
Hindalco Industries Ltd. is the Flagship Company of the Aditya Birla Group and is a renowned
non-ferrous metal major, producing Aluminum and Copper including Aluminum Foil.Hindalco
is amongst India’s top corporate having its units located at Renukoot, Renusagar, Dahej,
Silvassa, Muri, Belur, Belgaum, Kalwa, Taloja, Hirakud, Kollur, Mauda and Alupuram.
Hindalco was incorporated in 1958. Renukoot Unit commenced commercial production in
1962. The unit was set up in technical collaboration with Kaiser Aluminium and Chemicals
Corporation, USA. Renukoot was chosen as the site for the Company's integrated Aluminium
facilities to capitalize on power available from the Rihand Hydro Electric facilities. Renukoot
unit of Hindalco is the largest single location vertically integrated aluminium producer in the
country while contributing significantly to economic growth of the country, generating
employment and setting high standards in respect of fulfilling of obligations to all stakeholders.
The Renukoot unit of Hindalco comprises of Alumina (Refinery), Reduction (Smelter) &
Fabrication plant where as Captive power plant is located at Renusagar. Their bauxite mines
are located at Jharkhand, Chhattisgarh and Orrisa. Hindalco has centralised Marketing for
Primary metal, Flat Rolled and Extrusion Products.
25
26. Organizational environment
Hindalco being four decades old ‘pioneer in its field’ is having its operational activities at about
150 Kms away from the nearest Holy City of Varanasi in the midst of Reserve Forest of
Vindhyachal Range. Over a period of time, Hindalco and its township has been enriched with
an unparalleled family culture. Belongingness and ownership feelings amongst the employees
are deep rooted in their inherited mindset. It can well be understood from the very fact that
there hasn’t been a single hour loss of production due to any labor unrest for last 32 years. In
its effort to continuously excel the past performance, efficient technologies and better
management practices like QC, WCM, Kaizen have been implemented.
Main products and services:
Delivery Mechanisms:
The alumina powder is delivered to customer (Smelter plant) through belt conveyor and air
sluice, directly in their silos.
26
27. Rolled
Captive Power (820 MW) 80,000 TPA
Wire Rods
40,000 TPA
Extrusion
13,700 TPA
flexibility.
Foils
5,000 TPA
Caustic Soda Al. Fluoride Foils
From Subsidiary From JV 5Wheels
300,000 Pcs
Fully integrated operations - Renukoot
Indal synergies provide additional strength and operational
27
30. Fabrication plant- processes
Rolling Mills
o This involves conversion of rolling ingots into sheets, coils, plates, circles etc.
o Rolling section has a Hot rolling mill and 2 nos. cold rolling mills.
o The rolling process can be divided into two parts i.e. Hot rolling and Cold rolling.
o Steps involved are scalping, soaking, Hot rolling, Cold rolling, Annealing, Heat treatment,
finishing and packing.
o Finishing Line incorporates equipments like Mecesa Slitting Line, Bronx Cut-to-Length
Ungerer Tension Leveller and Samis Circle Blanking Line.
o Finished products in packed condition as per customer requirement are despatched.
Continuous Strip Caster
o An alternative to Hot rolled coils, the strip is cast directly from molten metal in this plant.
o This eliminates all intermediate processes like D Casting, Scalping, Soaking etc. and
thereby reduces cost of end product.
Inspection & Packing
o Adoption of semi-automatic process.
o Endeavour to packing cost reduction and assurance for supply of material in intact
o Storage of packed material in warehouse till desptach.
30
31. Renupower -an introduction
Rihand Lake
o Source of Water
Jingurdah Mines, NCL (Distance -7.6
o Source of Coal KM)
3300 Kcal/KG (F Grade)
o Average CV of Coal
Arial Ropeway (70%) By Road (30%).
o Mode of Transportation
Two (2)
o No. of Ropeways
Top Supported, Bi-drum, Pulverized
o boiler Coal Firing, Tangential Tilting Burner
System.
85%.
o Boiler Efficiency
o Turbine Impulse & Reaction
o Overall Cycle Efficiency 30%
31
32. Coal transportation system
o Renusagar is linked to Jhingurda Coal Mines of Singrauli coal belt which is about 8 Km
from Renusagar.
o Coal is transported with the help of Aerial Rope Way system as well as with road transport
system.
o About 12,000 tons of coal is transported every day.
o Aerial Rope Way System
o Bi-Cable System (#1&2) : Two ropes are used.One is stationary rope, used as track rope,
the other one isendless haulage rope. Each bucket carries about 1.4 tons of coal
o Mono-Cable System (#3&4) : There is only one rope which serves as track cum haulage
rope for carrying buckets. Each bucket carries about 1 ton of coal.
32
33. maintenance and
other practices
continuously for
Environment and safety pollution
prevention.
o Conservation of
key input
resources.
o Exploring the
feasibility of
recycling and
utilization of
inevitable waste.
o Compliance with
all applicable
environmental
laws and
regulations.
o Continuous
improvement in
working
conditions
leading to
prevention of
accidents.
33
34. Caring for the environment
Process Area Process Improvement Savings( Rs.crore )
Recycling system improved.
Water
conservation in
New sewage treatment 1.2
power plant
plant.
Recycling
o Recovery of Fluorine through Dry Scrubbing Systems
o Recovery of Fluorine Value and burning of residual Spent Pot Linings as fuel in Boilers
Waste Disposal
o Fly Ash Bricks and Blocks manufacturing for Building and Road Construction also given to
Cement Units.
o Semi-dry stacking of Red Mud for reduced storage area and prevention of seepage.
34
35. Aluminium profile
Demand
Aluminium product profile and its substitutes(wood and plastic)are used for the same
intermediat uses in four different cases: new and renovated buildings. Profile aluminium has
65% of doors and windows frame market in India,during the last 5 years. The increased
demand of aluminium profile products in Greece is primarily determined by the development
of private construction and public sector projects (spata airport ,rio-antirio bridge, metro
Athens,etc.)are are very important factor for the future demand of the aluminium profile
industry. The construction industry service are a highly cyclical market, suffering from the
normal 4 or 5 year business cycle.
Aluminium profile demand exhibits greater variability than the other sector of the construction
industry because private sector demand is dependent on investment by other sector of the
economy and is highly sensitive to interest rate.
The future for construction demand is uncertain and growth will depend on, among other
thing, the success of policies to increase growth, employment and competitiveness. The
speed of convergence towards monetary integration and the constraint that this
convergence may impose on the greek government for construction will also effect growth.
Supply
The total number of aluminium profile company is 25 and most of these companies are
society anonyms. The aluminium profile market has a small number of large well known
companies(15% of the total number of firms),a relatively less significant band of medium sized
firms(65% with less than 30 employees) and a major segment of small companies (there are
no dominant companies and they have less than 29 employees)which are either specialists or
worked in extremely localized markets.
35
36. Total production of primary aluminium was 170 thousand tones in 1996(40%of the total
European production),while the consumption7,67,00tonnes in the same year. Extruded
product output was 6,71,000 tones in 1995(+0,3%vs 1994) and 6,95,000 tones in
1996(+3,6%vs 1995)around 40% of total production is exported primarily in the E.U.
The extruded product have an incomparably large range of applications: in construction
(90% in 1996),transportation (1,7%),
Mechanical and electricity sector(1,8%),and many other applications (6,5%).many
companies of the aluminium sector are listed in the Athens stock exchange, in the last 4
years.
The international market:
The non ferrous-metal industry is one of the biggest sector in the European union; with gross
output accounting for 10%-13% of GDP in the E.U.aluminium also represents about 205 of
the total economy. The E.U. consumption of these metals is even higher, representing nearly
28% of the market economy countries demand. The sector is a major employer with around
300,000 persons employed at same 3200 firms and its annual turnover is ,in the order of 20
billion ,ECU in 1996.the e.u. aluminium industries is a net exporter of raw materials.
Production of primary aluminium was3, 1 million tones in 1995 (+2, 6%vs 1994) and 3,2
million tones in 1996(+1,9%vs 1995). Production of secondary aluminium was 1,71 million
tones in 1995(+4,6vs 1994) and 1,74 million tones in 1996(+2,1%vs 1995).
36
37. Applications & products
Aluminium is a key component in so many aspects of our life – from the buildings we work in
to the cars we drive, from the cans we drink out of to the flights we take. Its unique
combination of properties – lightweight, strong, flexible, recyclable - make it ideal for an
almost endless range of applications and an essential part of modern living.
Building & Construction
The building and construction industry is today faced with many environmental challenges -
from its impact on climate change to its choice of materials and methods of waste disposal.
The growing understanding that the entire life cycle of a building and its fittings must be
considered and balanced against the realities of design, function and economy has seen
aluminium fast become the material of choice.
Its properties mean that intricate, stable and lightweight structures can be designed without
concern, as even thin structures do not warp. Aluminium is a material that has given architects
and designers the physical means to achieve creative innovations in design.
Aluminium allows a high degree of prefabrication with a variety of finishes before components
leave the factory, which reduces the workload at the construction site.
Design, Function and Economy
Architects and designers have been aware of aluminium's unique qualities for more than 100
years. As well as being one of the most abundant metals in the world, aluminium's formability,
high strength-to-weight ratio, corrosion resistance, and ease of recycling make it ideal for:
Windows, Skylights, Screens and Doors
Highly resistant and rigid, they have low rates of expansion and contraction and also of
condensation. They are extremely stable, durable and thermally efficient.
37
38. Facades, cladding/siding, weatherproofing
Aluminium siding is available with insulation and reflective foil backing, so walls can be made
weatherproof and energy-efficient.
Roofs and Canopies
Aluminium building products help keep homes cool in summer, warm in winter, and snug and
dry all the year round.
Structures
Structural uses range from a glazed shop front to the superstructure of a shopping centre or
stadium. Its resistance to corrosion means it is virtually maintenance-free which is particularly
important if used in an inaccessible area.
Transportation
The combination of lightness, strength and formability make aluminium the ideal material for
any transport application. The initial investment in energy is repaid many times over in fuel
savings and gains during recycling of most vehicles.
It takes force to move something (Force = Mass x Acceleration). Therefore, the lighter the
relevant thing is, the less force it takes. A truck, car, train, boat or plane can be moved with
less force or carry more cargo at the same force if the vehicle itself is lightened.
Let's not forget non-motorised transport - bicycles, scooters, roller blades - nor mobility aids -
wheelchairs, walking frames and chairlifts - both of which also benefits from the properties of
aluminium.
38
39. Aluminium cans
Aluminium cans are perfect containers - strong, lightweight, compact, impermeable, safe and
recyclable.
Most drinks cans are now made of aluminium and their popularity is easy to understand as
aluminium imparts no taste, it keeps flavor and carbonation in and oxygen, light and moisture
out. Also it is shatter proof and any attempts at possible tampering are easily detectable.
Aluminium beverage have a protective polymer coating applied on the inside to prolong
storage life. This polymer coating ensures that the acids and salts in beverages or food never
actually come into contact with the metal.
Aluminium cans are easier to ship to wholesalers and retailers than both glass or plastic
bottles because of they are light, but strong. They stack better in delivery trucks, on shelves
and in the refrigerator and need less protection during shipment. Significant energy savings
are made in both shipping and distribution.
Aluminium cans are also easy to collect for recycling and one of their great assets is that they
are totally recyclable.
39
40. Electricity
Aluminium or aluminium alloy electrical conductors are now widely used in:
oOverhead electrical transmission and distribution cables
oPower systems and substations
Aluminium is particularly suited to these uses because of its high electrical conductivity, low
weight and good resistance to corrosion.
Transmission and distribution lines Worldwide most high-voltage overhead transmission and
distribution lines – as well as many underground lines - are made of aluminium.
Since 1945, aluminium has replaced copper in high-voltage transmission lines and today is
the most economical way to transmit electric power. Aluminium weights only one-third of
copper and one kilogram of aluminium can carry twice as much electricity as one kilogram of
copper. Aluminium power lines are therefore lighter and require fewer, and lighter support
structures.
Aluminium power lines can be made of single-strand wires, of many wires stranded together
or, for maximum strength, of aluminium strands wrapped around a steel core.
Power systems and substations
Almost all electric lights, motors, appliances and power systems depend on a vast grid of
aluminium wire. For example, the power systems of the world's largest buildings are made of
aluminium.
Aluminium is also widely used in "switchyards" or substations where electricity is stepped
down to lower voltages for local distribution.
Light bulbs, antennae and satellite dishes
Since the 1950s aluminium has practically replaced brass as the standard base for the electric
light bulb. Every year in North America, more than four billion light bulbs, fluorescent tubes
and other electric lamps are manufactured and 95 per cent of them have aluminium bases.
40
Thousands of television antennae and many satellite dishes are also made of aluminium.
41. Other uses of aluminium
o Medical use of aluminium
• Aluminium hydroxide
Aluminium hydroxide is widely used as an antacid to relieve gastric irritation and assist in the
healing of peptic ulcers. It has good acid neutralizing capacity and also has the ability to
absorb and reduce the activity of pepsin.
• Aluminium chlorohydrate
Soluble aluminium compounds have been used for many years as antiperspirants. Aluminium
chloride was the first compound used as an antiperspirant although currently aluminium
chlorohydrate which is much less acidic, is the major antiperspirant compound. The action
mechanism is still under investigation but it appears to act by forming a plug of aluminium
hydroxide within the sweat duct.
• Aluminium hydroxide
In 1926 alum-precipitation diphtheria toxoid was discovered to have greater antigenic
properties (for stimulating the production of antibodies) than the toxoid alone.
The enhancement of diphtheria toxoid by the adjuvant (beneficial additive) aluminium
hydroxide is typical of the use of an aluminium salt to increase the level and duration of
immunity afforded by a vaccine. Aluminium salts are the most widely used type of
adjuvant due to its reputation for safety in humans.
o Aluminium in water
Aluminium performs a valuable role in the treatment of water. Aluminium sulphate (alum) is
widely used in the purification of waste water as well as water from rivers, lakes and
reservoirs. It is a flocculating agent with the capacity to coagulate and trap solid matter that
may be floating in the water, such as algae and other organic and non-organic matter.
During the process a fine precipitate is formed which removes many contaminants, including
the spores of dangerous pathogens. Before leaving the treatment plant the water is filtered to
remove the flocculate and the vast majority of the aluminium. At present there is a WHO
guideline for the maximum level of aluminium in drinking water of 0.2mg total aluminium per
liter. This is essentially set for the visual effect and taste. No health-based criteria have been
proposed for aluminium levels in drinking water by the World Health Organization.
41
42. Benefits
Modern life is full of advantages brought about by the use of aluminium. So why aluminium?
What are the major benefits of this unique metal:
oStrength
Pure aluminium is soft enough to carve but mixed with small amounts of other metal to form
alloys, it can provide the strength of steel, with only one-third of the weight. Without aluminium
there would be no commercial air travel.
oDurability
Aluminium sprayed on a polymer forms a thin insulating sheet that can keep a newborn baby
warm or save the life of someone on an exposed mountaintop.
oFlexibility
Its combination of properties ensure aluminium and its alloys can be easily shaped by any of
the main industrial metalworking processes - rolling, extrusion, forging and casting.
oImpermeability
Aluminium has excellent barrier function which makes it ideal for food and drink packaging
and containers. It keeps out air, light and microorganisms while preserving the contents
inside.
oLightweight
Aluminium used in transport reducing the weight of the vehicles, hence in providing fuel
efficiency, reducing energy consumption and greenhouse gas emissions.
oCorrosion-resistant
The metal's natural coating of aluminium oxide provides a highly effective barrier to the
ravages of air, temperature, moisture and chemical attack, making aluminium a useful
construction material.
oRecyclable
Once made, aluminium can be recycled again and again, using only a very small fraction of
the energy required to make "new" metal. Recycling saves about 95% of the energy required
for primary production.
oOther
Aluminium is a superb conductor of electricity which has seen it replace copper in many
electrical applications. It is also non-magnetic and non-combustible, properties invaluable in
advanced industries such as electronics or in offshore structures.
42
43. Properties of aluminium
o Pure aluminium is a silvery-white metal with many desirable characteristics. It is:
o Non toxic
o Impervious
o Non magnetic
o Non sparking
o Decorative
o Easily formed, machined, and cast
o Alloys with small amounts of copper, magnesium, silicon, manganese, and other elements
have very useful properties.
o Strong depending on its purity, for example 99.996 per cent pure aluminium has a tensile
strength of about 49 megapascals (MPa), rising to 700 MPa following alloying and suitable
heat treatment.
o Although not found free in nature, aluminium is an abundant element in the earth's crust.
o Low density
o Corrosion resistant
o Electricity conductor
o Non-magnetic
o non-combustible
o Highly reflective
o Heat barrier and conductor
o Malleable
o Easily worked
43
44. Physical properties
Density/Specific Gravity (g.cm-3
2.70
at 20°C)
Melting Point (°C) 660
Specific heat at 100 °C, cal.g-1K-
0.2241 (938)
1 (Jkg-1K-1)
Latent heat of fusion, cal.g-1
94.7 (397.0)
(kJ.kg-1)
Electrical conductivity at 20°C (%
of international annealed copper 64.94
standard)
Thermal conductivity (cal.sec-
0.5
1cm-1K-1)
Thermal emmisivity at 100°F (%) 3.0
Reflectivity for light, tungsten
90.0
filament (%)
These properties can be very significantly altered with the
addition of small amounts of alloying materials.
44
45. Alloys
Aluminum's range of properties can be found in an impressive array of commercially available
alloys. The composition and logic of those alloys are regulated by an internationally agreed
classifications system or nomenclature for wrought alloys and by various domestic
nomenclature schemes for the casting alloys.
The wrought scheme is as follows. Each registered alloy is described by a four digit number,
with a further letter and number indicating the temper, or condition of the alloy, For example,
6082-T6 is a medium strength grade based on the aluminium-magnesium-silicon family, in the
fully heat-treated condition.
The classification provides for:
1XXX Aluminium of 99% minimum purity
2XXX Aluminium-copper alloys
3XXX Aluminium-manganese alloys
4XXX Aluminium-silicon alloys
5XXX Aluminium-magnesium alloys
6XXX Aluminium-magnesium-silicon alloys
7XXX Aluminium-zinc-magnesium alloys
8XXX Miscellaneous alloys e.g. aluminium-lithium alloys
Alloys fall into two main groups. The work-hardening alloys, where strength is achieved by the
amount of "cold work" applied to the alloy for example, by rolling, and heat-treatable or
precipitation hardening alloys, where the strength and properties are achieved by heat
treatments of varying complexity.
For more information about alloy designations and properties try one of the following sites:
UK – Aluminium Federation - www.alfed.org.uk
USA – Aluminium Association - www.aluminium.org
45
46. Background
Aluminum is a very abundant metal. It also highly sought after due to its properties of being
lightweight and its resistance to corrosion. It is heavily used in the automotive, aerospace and
construction industries and demand for the metal has soared in the past 50 years.
Unfortunately, it occurs very infrequently in a free state and is instead usually found combined
with other minerals such as bauxite and therefore needs to extracted and smelted. This
extraction from mineral ores is a difficult and expensive process.
One of aluminum’s core requirements is access to large amounts of power in order to drive
smelting operations. A very high temperature is necessary to melt aluminum. The heat is
derived from gas, geothermal, hydro or other power sources to generate electricity or heat.
Electric power used in aluminum smelting can represent up to 40% of the cost of production
of aluminum. This has prompted most major producers to continually look to set up production
operations increasingly closer to sources of energy. These may be hydro power in some
cases or simply closer to large sources of natural gas, such as exist in the Middle East. For
example, Alcoa is investing in hydroelectric projects in Brazil in order to be close to the actual
power source.
46
47. Market structure
Aluminum production is expensive and requires heavy capital investment. Most of the key
producers are major corporations and the business is concentrated, not fragmented. As
indicated above, a recent trend is for major firms to invest in smelting operations which are
closer to power sources. As a direct results, older aluminum operational facilities are closing
down as the older sites are no longer cost effective. Norsk Hydro, for example has terminated
approximately a quarter million tons of capacity in Northern Europe in favor of cheaper Middle
East based operations. Alcoa has made similar moves. Industry experts estimate that up to 4
million tons of annual aluminum capacity from older facilities could be shut down in the next 3
to 4 years. How aluminum is used:
47
48. Industry players
o Rusal Headquartered in Russia Merger of Sual Group, OAO Rusal and assets of
Glencore AG Revenues of US $8.6 billion in 2006
o Alcoa Headquartered in Pittsburgh, Pennsylvania Revenues of $31.5 billion in 2006
Net Income of $2.2 billion in 2006
o Norsk Hydro 4th largest aluminum producer worldwide Major producer of oil and gas
in Norway 43% owned by the Norwegian government Produces over 1.6 million tons
of aluminum annually
o Rio Tinto Headquartered in the UK Revenues of US $22 billion in 2006 Market
capitalization of US $97 billion 33% profit margin Currently bidding US $38 billion to
buy out Alcan
o Alcan Headquartered in Montreal, Canada Revenues of US $25 billion in 2006 May
be purchased by Rio Tinto
48
49. o Trends and Recent Developments
With the price of aluminum remaining high, companies are investing heavily to find dedicated
power sources to be able to produce aluminum. They are looking even further afield, often in
very remote locations to set up aluminum producing operations. Some of these firms,
including Rusal and Norsk Hydro are looking to remote spots in Siberia or other locations for
new production sites. The new rule seems to be to get closer to the production source as
opposed to closer to the customer. The geographic center of gravity continues to shift. The
Middle East, as a consequence of its major oil and gas reserves, is expected to significantly
grow its aluminum production. With the same objective in mind, Norsk Hydro has teamed up
with Qatar Petroleum to expand capacity in Qatar. Alcoa has set up production operations in
Iceland where it has better access to hydropower. For the most part, aluminum operations in
the Pacific Northwest of North America have been almost shut down due to the high cost of
fuel.
Many firms are also focused more on the core production functions and are spinning off
ancillary operations such as aluminum packaging or aluminum can production (Rusal). Alcoa
has also recently been interested in selling some of its consumer-oriented operations
including ones in the automotive sector.
o Sources
o Norsk Hydro
o Yahoo Finance
o Wikipedia
o Market Watch
o Wall Street Journal
o International Aluminum Institute
o United States Census Bureau
49
50. Outlook
o India has the potential to be among the world’s top five suppliers and markets for
aluminium and steel
o Domestic Steel consumption is expected to grow by 8% p.a. to 60 million tones by 2010
o Aluminium demand is expected to grow by 10% p.a. for the next ten years
o India’s per capita consumption of metals is projected to increase substantially in the future
o Low per capita consumption today: 30 kg. of steel as compared to an average 150 kg.
globally, 0.6 kg. of aluminium as compared to 3–4 kg. in other developing countries
50
51. Potential
o India is one of the lowest cost producers of alumina and aluminium.
o India presents large investment opportunities across the value chain.
o Integrated steel, copper and aluminium plants.
o Recycling plants for secondary aluminium.
o Booming automotive and infrastructure sectors are likely to drive future demand for
aluminium.
o Currently only 5% of steel is routed through Steel Servicing Centers; likely to increase to
35% by 2012.
o Large integrated international metal manufacturers including Mittal Steel and Dubai
Aluminium have announced plans for setting up plants in India.
o POSCO’s proposed US$12 billion investment in the mineral rich state of Orissa could be
India’s largest FDI till date.
o Investments of over US$30 bill.
o ion in steel and about $20 billion in aluminium are in the pipeline over the next five years
51
53. Employer branding
Since the term Employer Brand was first used in the early 1990s to denote an organization's
reputation as an employer. Since then, it has become widely adopted by the global
management community. Minchin ton (2005) defines your employer brand as “the image of
your organization as a ‘great place to work’ in the mind of current employees and key
stakeholders in the external market (active and passive candidates, clients, customers and
other key stakeholders). The art and science of employer branding is therefore concerned
with the attraction, engagement and retention initiatives targeted at enhancing your company's
employer brand."
Just as a customer brand proposition is used to define a product or service offer, an employer
brand proposition (otherwise referred to as an employer value proposition, employee value
proposition or EVP) is used to define an organization's employment offer.
Likewise the marketing disciplines associated with
branding and brand management have been
increasingly applied by the human resources
and talent management community to
attract, engage and retain talented
candidates and employees, in the
same way that marketing applies
such tools to attracting and retaining
clients, customers and consumers.
53
54. Origin and adoption of the Employer Brand
concept
The term ‘Employer Brand’ was first publicly introduced to a management audience in 1990,
and defined by Simon Barrow, chairman of People in Business, and Tim Ambler, Senior
Fellow of London Business School , in the Journal of Brand Management in December 1996.
This academic paper was the first published attempt to ‘test the application of brand
management techniques to human resource management’. Within this paper, Simon Barrow
and Tim Ambler defined the employer brand as: the package of functional, economic and
psychological benefits provided by employment, and identified with the employing company.
By 2001, of 138 leading companies surveyed by the Conference Board in North America, 40%
claimed to be actively engaged in some form of employer branding activity. In 2003, an
employer brand survey conducted by the Economist among a global panel of readers
revealed a 61% level of awareness of the term ‘employer brand’ among HR professionals and
41% among non-HR professionals. The first book on the subject was published in 2005, and
the second in 2006 . In 2008, Jackie Orme, the Director General of the UK Chartered Institute
of Personnel Directors confirmed the growing status of the discipline in her opening address
to the CIPD annual conference, with the observation that: “When I started out in the
profession, nobody talked about employer branding. Now it's absolutely integral to business
strategy - resonating well beyond the doors of the HR department”. Similar recognition of the
growing importance of employer brand thinking and practice has also been recently in
evidence in the USA, Australasia, Asia, and Europe, with the publication of numerous books
on the subject.
54
55. Employer branding
While the term ‘employer brand’ denotes what people currently associate with an
organization, employer branding has been defined as the sum of a company’s efforts to
communicate to existing and prospective staff what makes it a desirable place to work, and
the active management of a company’s image as seen through the eyes of its associates and
potential hires
Employer brand management
Employer brand management expands the scope of this brand intervention beyond
communication to incorporate every aspect of the employment experience, and the people
management processes and practices (often referred to as ‘touch-points’) that shape the
perceptions of existing and prospective employees. In other words, employer brand
management addresses the reality of the employment experience and not simply its
presentation. By doing so it supports both external recruitment of the right kind of talent
sought by an organization to achieve its goals, and the subsequent desire for effective
employee engagement and employee retention.
Employer brand proposition
As for consumer brands, most employer brand practitioners and authors argue that effective
employer branding and brand management requires a clear Employer Brand proposition, also
regularly referred to as an Employer value proposition or Employee value proposition (EVP).
This serves to: define what the organisation would most like to be associated with as an
employer; highlight the attributes that differentiate the organisation from other employers; and
clarify the ‘give and get’ of the employment deal (balancing the value that employees are
expected to contribute with the value from employment that they can expect in return). This
latter aspect of the employer brand proposition is often referred to in the HR literature as the
‘psychological contract’.
55
56. Relationship between employer branding and internal marketing
Internal marketing focuses on communicating the customer brand promise, and the attitudes
and behaviors expected from employees to deliver on that promise. While it is clearly
beneficial to the organization for employees to understand their role in delivering the customer
brand promise, the effectiveness of internal marketing activities can often be short-lived if the
brand values on which the service experience is founded are not experienced by the
employees in their interactions with the organization. This is the gap that employer brand
thinking and practice seeks to address with a more mutually beneficial employment deal /
Psychological contract.
Role of employer brand management in brand-led culture change
Compared with the more typically customer centric focus of Internal marketing, internal
branding / brand engagement takes a more ‘inside-out’, value-based approach to shaping
employee perceptions and behaviors, following the lead of the highly influential ‘Built to Last:
Successful Habits of Visionary Companies’ study published in the mid-90’s. This sought to
demonstrate that companies with consistent, distinctive and deeply held values tended to
outperform those companies with a less clear and articulated ethos. While brand-led culture
change is often the stated desire of these programs their focus on communication-led,
marketing methods (however, involving or experiential) has been prone to the same failings of
conventional internal marketing. As Amazon’s founder, Jeff Bezos, asserts: “One of things you
find in companies is that once a culture is formed it takes nuclear weaponry to change it”. You
cannot simply assert your way to a new culture, no more can you assert your way to a strong
brand, it needs to be consistently and continuously shaped and managed, which is one of the
primary reasons many organizations have turned from the short term engagement focus of
internal branding initiatives to more long term focus of employer brand management
56
57. EMPLOYER BRANDING : EVP
DEVELOPMENT
BRAND LEARNING has extensive experience helping companies with brand positioning,
portfolio management and brand delivery across the marketing mix. We have used this
expertise to develop proprietary approaches and tools to create and implement Employee
Value Propositions (EVPs) aligned to our clients’ corporate brands.
EVPs deliver significant benefits for organizations: externally, by enhancing efficiencies and
effectiveness of attraction activities e.g. improved targeting and channel selection, cut-through
of persuasive and consistent messages; internally, by raising right fit employee retention rates
through greater levels of employee motivation and pride.
BRAND LEARNING’s approach to EVP development encompasses a comprehensive
program me of:
oStakeholder engagement and alignment - gaining traction, commitment and senior
sponsorship
oEmployer brand positioning and EVP frameworks design - aligning to the corporate brand
oRobust, innovative research - uncovering key candidate/employee learning's and validating
potential EVP routes
oCandidate/employee Insight and EVP generative workshops- leveraging proprietary tools
and creative techniques
oImplementation plan development - bringing the EVP to life at key touch points through both
internal engagement and external attraction activities
Using this approach, we partner our clients in developing insightful and differentiated EVPs,
powerfully brought to life at key “moments of truth” across the candidate journey and
employee experience – thereby providing a compelling reason for target candidates to join
and world class employees to stay.
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58. Building an employer brand
In the present job markets , where companies compete for attracting the best of the talent ,
employer brand , sometimes , becomes more relevant when compared to various critical
factors like job profile and the compensation package.
Employer brand is the image of an organization as a great place to work in
the minds of its current employees and key stakeholders. It is the development of such an
organizational culture which fosters a sense of belongingness with the company and
encourages the employees to share organization's goals for success. In short, it is the value
of the company in external marketplace. The goal of employer branding is to create loyal
customers; the customers here being the employees.
An employer brand represents the core values of an organization. Companies that are
considered good employers have a strong identity and an image in the marketplace. Building
such a brand requires a lot of introspection by the company, and answering the questions,
"what kind of company we are, and want to become?" and "how do we live up to the
expectations of our stakeholders?
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59. What makes an employer a brand?
Simon Barrow, who is president of a successful consulting firm in London that specializes in
employer branding services describes four elements that work together to make an employer
brand. The first element is the Employment Package which is the offer that an employee gets
including job responsibilities, financial compensation, work/life balance, the employee's role in
organization and professional development. Next comes the Culture and Environment which
includes the physical working environment, the size of the organization, and the organization's
approach to work. Then there is Integrity. Delivering what has been initially committed always
counts. The consequence of a lack of integrity is seen in the form of high attrition rates. And
finally Management Performance that plays as a vital role in the Employer Branding process
Building a brand is typically a twofold process. One is for prospective employees and the other
for the current set of employees. While building brand for prospective employees, initiatives
are targeted at building a repute in potential recruits about the company as a preferred place
to work. On the other hand, while building brand internally, the company has to live up to its
standards and incorporate a culture of respect and trust for employees.
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60. Growing significance
It is said that an unsatisfied customer tells ten people about his experience while an
unsatisfied employee tells a hundred. Employer branding reflects the work culture in an
organization. It has become more critical in today's times, as most professionals are looking at
a stable career and establishing a long-term relationship with the company. Research shows
that employees of industrial brands feel a much greater sense of pride, attachment and trust
towards their employer. They are also significantly more likely to recommend their company to
others and claim it treats employees well. Through right branding, the company can recruit the
best talent and reinforce its positioning amongst its employees. It helps build trust and
reliability. A good employer brand makes it easy to attract good talent and curb attrition. The
strength of an organization's brand has a significant impact on the performance of its
employees. Working with one of the largest or most innovative companies in a specific
industry acts as a motivator too
But as one moves higher in his career, brand name becomes of little significance as job role
takes over. Brand name is the most important factor but at entry level only. When one is a
fresher and embarks on one's career, the brand of a company matters. It helps in reflecting a
stronger resume. With career growth, one places importance on things that are more
meaningful to one's sense of purpose. According to Gautam Sinha, CEO, TVA Infotech, for
employees who have spent three-four years in the industry, brand is high on the list. It is
easier to sell the company if it is a reputed brand. For those who have spent five years in any
industry, it's the job role that's important and for those with 10 year behind them, the job role
becomes the most critical factor.
It is also being argued that in most cases, companies treat employer branding as a mere
short-cut for attracting the talent. Instead of self-analysis, the HR departments tie up with ad
agencies to conjure up an image that may be attractive to their target market, even if not their
own. While some argue that organizations like Google with strong employer brand hardly
spend money in building the brand; instead they focus on living the brand. Sasken, for
example, has a stated 'People First' policy to emphasize that employees are the focus. Fedex
has a core philosophy of 'people - service - profit' to indicate what comes first. Bill Marriott of
Marriott Hotels does not tire of repeating the founder's belief "Take care of the associates,
and they'll take good care of the guests, and the guests will come back." These organizations
reveal a high degree of trust in the management of the organization. Managements must
understand that the core value offering of the organization is to engage employees towards
being productive and responsive to customers. In the end, it is believed that if the company
takes care of people, people will take care of the company.
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61. Introduction
Headlines like RINL(Rashtriya Ispat Nigam Limited ) Personnel department gets ISO 9000
for its excellent services in Human resources, , Standard charted bank employees to have5
days week, icici plans to recruit 30,000 employees in coming year , Accenture on course to hit
35,000 headcount in India or launching of a completely a new Brand strategy TCL a china
based electronic company termed " Creative life "for global market or Infosys to open BPO
unit in Mexico , or that of wipros in Egypt or the UB group acquiring Shaw Wallace.. these
statement as news of daily magazine or topic of discussion create what is known as Brand
image or the "Trust mark "or as defined by Minchington (2005) as "the image of the
organization as a 'great place to work' in the minds of current employees and key
stakeholders in the external market (active and passive candidates, clients, customers and
other key stakeholders)."
The concept of Employer Brand has gained importance since 1990"s or it is a result of Global
manic competition but above all it has become a magnetic force, a catalyst , an accelerator
and a prime factor which determines an organization success and future .
Employer brand has overshadowed and synchronized all other factors which had their
individual importance like customers, relationship, PR, networking, 2- way
Communication etc and is now the sole prima factor or the turnkey of success.
This article is aimed to explain the need, importance, process, applicability, and outcome of
employer branding.
61
62. Defining Employer Branding
Like a consumer brand, it is an emotional relationship, but between an employer and
employee, one that radiates out from this core to other stakeholders, to the community at
large, and obviously to potential employees.
Employer branding is the development and communication of an organization's
culture as an employer in the marketplace. It conveys your "value proposition" - the totality of
your culture, systems, attitudes, and employee relationship along with encouraging your
people to embrace and share goals for success, productivity, and satisfaction both on
personal and professional levels.
Employer branding is the essence of the employment experience, providing points that
commence with initial employer brand awareness, and continuing throughout the tenure of
employment, even extending into retirement. Employer branding is a distinguishing and
relevant opportunity for a company to differentiate itself from the competition creating its
branded factors as its USP for employee satisfaction and happiness resulting in retention,
productivity and efficiency.
Developing an image as an employer is part of employer branding. Turning that image into a
working relationship between an organization and its potential recruits is a process.
Understanding that relationship is often a process of discovery," says Jo Bredwell, senior
partner at JWT Specialized Communications. "Sometimes employers need a brand, but what
they really need is to discover what it is.
62
63. A Corporate understanding of Employer
Branding Concept across the globe
American Express, Cisco Systems, Amgen, Starbucks, and Intel, all of which have received
recognition on The List of 100 Best Companies to Work for in America are leaders in
Employer Branding as well. "They all share the common trait of treating their employees better
than their peers in their industries, and all invest heavily in employee training and
development," states Hornung .
Companies who don't invest in developing an effective Employer Brand will, in the long run,
be less financially successful than those who are. As stated by States Woltzen, "They will not
be able to recruit or retain the high-performing employees they will need to run a successful
business."
2002 Gallup survey reported that less than a quarter of American workers are fully "engaged"
in their work, costing the US economy $300bn (and £50bn in the UK) per year. Gallup surveys
in Great Britain, France and Singapore revealed similar findings in 2003.
The surveys revealed that more than 80% of British workers lack any real commitment to their
jobs, with a quarter of those being "actively disengaged," or truly disaffected with their
workplaces. Gallup estimates that actively disengaged workers cost the British economy
between £37.2 billion ($64.8 billion U.S.) and £38.9 billion ($66.1 billion U.S.) per year due to
low employee retention, high absentee levels, and low productivity.
Gallup survey results in 2003 also showed that only 12% of French workers are engaged in
their work, with approximately 2.5 times as many workers (31%) being actively disengaged, or
disconnected from their jobs.
In Singapore's workforce, the percentage of actively disengaged employees is on the rise. At
17%, this figure is up five percentage points from 2002. Gallup estimates that the lower
productivity of actively disengaged workers penalizes Singapore's economic performance,
costing between $4.9 and $6.7 billion annually.
Recruiters in IT/ITES sectors are increasingly advising companies to hire expert help for
employer branding. "If you are not a first-mover like Infy or Wipro, then where is your USP?"
asks Mr Gautam Sinha, CEO, TVA Infotech, one of the largest IT recruitment firms in the
country.
63
64. Mr Harish Bijoor, CEO of Harish Bijoor Consults Inc, calls this a cusp activity between HR
and marketing. "Internal branding is all about activation of solutions that can be seen,
touched, felt and literally smelt by the employee every single day. Branding from the external
perspective is all about top-down branding. Internal branding is a very bottom-up process."
Brand name is what makes companies employers of choice at campuses, emphasizes Prof S.
Murali, Chairperson, Placements, at the ICFAI Business School. Companies now send
students of previous batches as brand ambassadors to talk about the work atmosphere,
growth opportunity, salary and other attractions that companies offer.
Rishi Das, CareerNet Consulting, a consulting firm that has been connecting engineering
colleges with corporate, has had a different experience with entry-level employees. "We have
seen that in the top 20 colleges, it's the salary and the job role that matters. Brand name only
comes third, but in colleges that are ranked below the top 20, salary and brand name are
top .Thus employer branding includes all such tangible and non-tangible factots that create
satisfaction .
Gautam Sinha, CEO, TVA Infotech, a Bangalore-based IT recruitment firm, says the brand
name is the most important factor at entry level. On a scale of 1-10, he says, most students
would place brand name on top. An opinion that is also influenced by parental views, he says.
"At campus placements, parental consent plays a critical role. Most candidates choose big
brands because of this, unless of course they have specialized in niche subjects like robotics
which big brands may not offer. Thus as per the organization requirements employer brand or
the Trust generating factors should be culminated in the system.
Employer branding as the" right fit" model
Effective employer branding also helps in hiring, retaining the right stuff. Considering that 85%
of job changes are attributed to organizational incompatibility, and one quickly recognizes
employer branding as a critical factor in effective recruitment, says Donald DeCamp, COO of
Comp Health Group, a health-care staffing firm. "Employer branding goes beyond a
company's reputation," says Kurt Mosley, vice president of business development says that."
Becoming an employer of choice and increasing retention rates means that an organization's
branding message truly aligns with the reality that exists for its workers because loyalty is no
longer the dominant paradigm of the employer/employee relationship, attracting and retaining
talent relies much more on being able to fulfill a different promise, and that promise varies
from organization to organization, depending on its culture, mission and ability to achieve its
goals.
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65. Knowing employees expectation: - the
foundation for Employer Branding
When properly planned and executed, an employer branding initiative can generate lively
dialogue between an employer and its employees, build a rationale for a 'mutual working
arrangement', and establish compelling reasons to commit to the arrangement. Whatever is a
corporate or an employer an employee expects the following from employer:-
1) Fair treatment
2) Trustful and open channeled communication
3) Ability to provide security and benefits in present and future
4) Planned and systematic career and succession planning
5) Motivating and morale building team and management
6) Smooth Disciplinary procedure and I.R
7) Employee benefit oriented culture and practices
8) Adequate talent acquisition , management, retention and utilization
9) Proper advancement and up gradation of employees
10) Participatory management
11) Industrial democracy
12) Clarity in roles and goals
13) Clearly defined authority responsibility charting
14) Timely decision making
15) Impartial , fair and growth promoting organization structure
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66. Creating the right mix: defining the
employment package
The employment package includes those that often "close the deal" for the
Prospective employee, such as financial compensation, work/life balance, the Employee's role
in organization and professional development. Every organization as per its need , workforce ,
level of competition and forecasted demand or business plan should match its expectation –
Requirement matrix in such a way so that it becomes easier for both employer and employee
to create a perfect brand name resulting in satisfaction. It includes the following :–
1) Focus on Culture and Environment: - It includes items such as the physical working
environment, the size of the organization, and the organization's approach to work.
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67. 2) Brand Image and Reputation: - It helps in establishing integrity.. The consequence of a
lack of integrity is the employee does not stay with the organization for long, contributing to
the organization's well being. To attract people to something you cannot deliver is a waste of
your time and money.
3) Management Performance:- It is a vital part in the Employer Branding process. Senior
management must be committed and involved in recruitment or the Employer Branding
process or it will be a failure.
4. A combination of Functional, psychological, and Economic benefits which a new entrant
expects. Thus by creating a need based employment package an organization is benefited in
two-way.
5. It also helps in Attracting and recruiting "the right" candidates Attending to shortages
within the organization Advancing retention rates and reduce turnover Amplifying employee
engagement, commitment, and performance
Employer branding process
The employment brand architecture as suggested by Ryan Estis the chief talent strategist for
NAS Recruitment Communications, an agency of the McCann World Group for becoming an
employer of choice includes the following steps -
1) Understand your business objectives
2) Identify your talent needs.
3) Determine the employment brand attributes.
4) Look for synergy with the corporate brand.
5) Develop a communications plan.
6) Develop the messaging and creative content.
7) Establish metrics.
8) Execute and evaluate.
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68. Taking these as the basic objectives and criterion the process of Employer branding can be
summarized as following –
Step 1 concept phase
360 degree employer brand audit to determine the strength of your current employer brand
and to determine its level of synergy with your corporate brand and business objectives.
Step 2 Design phase
The Design Phase is the process to formulate your employer brand strategy. It includes -
(i) Defining your Employer Value Propositions (EVP's)
(ii) Defining your EBI
The EBI is made up of two components – the Employer Brand Employee Platform which
includes
* Recruitment & induction
* Compensation and benefits
* Career development
* Employee researchA
* Reward and recognition
* Communication systems
* Work environment
Employer brand strategic platform
* Your firm's mission, vision & values
* Corporate Social Responsibility (CSR)
* Leadership
* Corporate reputation and culture
* People management policies and practices
* Performance management
* Innovation
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69. iii) The Corporate brand- the employer branding process and procedures should be aimed
towards corporate branding so that betterment could be created not only among internal
customers but also among external customers and all stakeholders.
iv) Market forces - Employer branding process and techniques should be aimed
towards building a positive image of the organization in external and internal
environment equally.
Step 3 - Integration phase
These may include:
* Career website
* Company intranet
* Careers fair brochures
* Company newsletters
* Policy and procedures templates
* Recruitment advertising
* Sponsorship
Step 4 - Evaluation phase
The Evaluation Phase involves measuring the impact of the Employer Brand program
Above all the success of any employer brand program depends on the efficiency with which
the need, situation for designing, implementing and monitoring an employer brand program
has been made. Not only a good understanding between the need, process, and inputs are
required but the full utility comes when full workforce is benefited by it.
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70. Implementing employer branding concept in organization
Following steps help in fruitful implementation of employer branding process they are –
1. Set measurable and attainable target for employer branding which should be development
oriented.
2. Hire professional services if needed for better and result oriented activities
3. Identify the needs of employees and design program as per the requirements.
4.Undergo survey either attitudinal for gathering information of employees satisfaction and
needs.
5. Design a full proof need based support oriented and growth focused strategy which will
help both employee and employer for development and promotion.
6. Validate the strategy with key constituencies.
Supportive factors in employer branding
1) Active employee involvement
2) Clear understanding of what your employees of choice want in an employer.
3) A clear, honest, ongoing feedback loop with employees that enable you to continuously
gather information about organizational strengths and weaknesses
4) A clear understanding of what needs you address well, and what ones you don't
5) A list of organizational practices and policies that weaken your employer brand and those
that strengthen it
6) A list of moment of truth experiences that help shape employees' overall work experience,
and a clear picture of how well you do in each area
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71. Outcome of effective Employer Branding
Thus, Employer branding gives an organization a competitive advantage. Employer
branding is a tool to attract, hire, and retain the "right fit it also has an impact on
shareholder value, creating positive human capital practices, contribute to bottom-line.
Strong employer brands have employer value propositions (EVP's) which are
communicated in company actions and behaviors and evoke both emotive (e.g. I feel
good about working here) and tangible benefits (this organization cares about my career
development) for current and prospective employees. These organizations segment and
communicate EVP's which reflect the image that the organizations want to portray to its
target audience. A company's employer brand is reflected in the actions and behaviors of
leaders and is affected by company policies, procedures, and practices and the same
when well planned and implemented results in profitability of organizations.
Conclusion
Thus it can be concluded that not only there is a need of creating a satisfaction in minds
of employees (Internal customers) but there is an urgent need of creating this positivism
in the minds f external customers and stakeholders. The created image has to be
monitored and sustain d in such a way so that it will help in increasing profits as well as
would create belongingness, pride, self actualization and true commitment in true words
and spirit.
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72. Employer branding – A new HR arena
This is a market oriented era. If you have a good brand value in market, you will get good
response if not; it’s very difficult to convince people.
From an HR point of view branding is very important. If your organization has a good
brand image in the market, it will help you in getting right workforce at right time and at the
same time you will have a control over the employee cost. An organization with no brand
name has to shell out lots of money to attract and retain the right candidate.
Branding can be done in two ways:
(1) External Branding and (2) Internal Branding.
Lots of factors may influence the branding strategy of an organization, like A) Nature of
Business B) Nature of market C) Target reception D) Budget flexibility E) Long term mission of
the organization F) Organizational structure. Etc. These are the few to count on but there may
be many as per the business.
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73. Branding strategy
A) Nature of business – Branding should be based on the nature of business. Like if
an IT company goes for a fashion show, it may not yield the same results as it would have got
by going to IT Fair or something similar. A real estate company may go for some road show
on property market.
B) Nature of market – It is always recommended to gauge the market before going for
any project which involves market risk Like if you are targeting to explore a Financial market or
banking and at the same time it is marred by some other factors like Inflation, you need to
design your strategy which could help you in overcoming the negative trend.
C) Reception target – It’s always good to define the reception target or the audiences.
If you are planning to sell Villas and targeting the middle class, probability is very high that you
will end up spending your time and resources in wrong direction.
D) Budget flexibility – Budget always plays an important role in deciding the strategies.
If your budget doesn’t allow you to spend a lot, its always recommended to partner in any
event where other participants are not of your field and it has got at least one participant who
has got a good market value so that you can attract the crowd.
E) Long term mission of organization – Also the long term as well as short term
goals of the organization should be kept in mind. If the organization does not have any long
term goals in the target market or location, it’s always recommendable not to go for branding
or it is very much required go for a small, low budgeted branding event.
F) Organizational structure – Organizational structure is also very vital part for
deciding any strategy. Organizational structure is the strength of any organization and any
event or branding can be done based on that. Like if your organization does not have lots of
hierarchy steps, you can boast of Flatness and claim of equal behavior. And if you have
different layers, you can market the clear definition of roles etc.
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74. External branding –
External branding refers to branding which is done by using external sources and which
may (or may not) require some investment in monetary or other forms. Let’s see the different
means of doing external branding.
(a) Use of job sites – As HR the first thing which comes to the mind is recruitment, so
Job sites also offer good branding opportunities through different means like Pop ups, pop ins
etc. It’s always better to go for pop ins as most of web browsers come with pop-up blockers.
(b) Banners – Banners are also a good mean for branding. Banners can be of both types’
means Online Banner and Street banners. By Online banner, your organization name will be
flashed on different web pages as per your choice and price. Street banners are good for
bigger requirements.
(c) Road shows – Road shows are also an important mean for creating brand
awareness. You can organize talks, presentations, seminars etc. for attracting people towards
your organization.
(d) Corporate social responsibility – Corporate social responsibility refers to
corporate getting associated with society for some noble cause. The association can be in any
mode either getting associated with a Charitable Trust or a NGO or some other public
venture. Corporate can align and attach with any of these and share the stage. Always keep
in mind that choose as per you organization status meaning if you are a small firm, do
associate with a medium sized organization and if medium you can align with either of these-
large or medium. Idea should be you get a nice coverage in the popularity cake.
(e) Public events – Public events are one of the major ways of creating a brand image.
An organization can participate in any of the public event and assuring that it does not get
disappeared in the crowd of many brands or big names.
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75. (f) Newspapers – Branding can be done through newspapers as well. If you target the
local public, you can go for advertisements considering the individual day circulation, target
readers, rapport of newspaper, type of newspaper etc. If you target only to employ people for
your workforce requirement, you can place job Ads which may seem expensive at the first
glance but in terms of attracting the correct workforce, it can do magic.
(g) Email – For mail ids related to job portals, you can create an auto reply which can
contain brief description of the key aspects of candidate’s and public interest and at the same
time introducing your company to the public. It should be informative as well as crispy so that
the audience reads it and just doesn’t do Shift Delete.
(h) Tagline – Create a nice, attractive tagline or a punch line for your brand and give it a
significant visibility in all your branding efforts. The tag line should be in accordance with your
organization values, goals, work etc. so that it reflects an overall image of the brand
everywhere.
(i) Align with celebrity – Aligning with a celebrity is also a good way of creating a
brand image. But this may cost you big bucks and ultimately increasing your cost dramatically.
This is an expensive method of branding.
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76. Internal branding –
Internal Branding is comparatively a cheaper way of branding. You can use your internal
organizational staff for this purpose.
(a) Front office – Always pay attention to your front office because first impression is last
impression. It should be kept neat and clean with a pleasant receptionist who always
maintains freshness and welcomes the guests with courtesy.
(b) Stays interview - HR can always conduct stay interviews in which they can interact
with the employee and ask them regarding their career prospects, there alignment with the
company, there feedback regarding their concerned departments, etc. These feedbacks can
be analyzed and used for different purposes by which you can create an internal brand image
of the country.
(c) Exit interview – An exit always carries a fair chance of initiating the chain reaction
among the employees so always be very careful in analyzing the exiting reasons so that you
can overcome the justified ones in the future.
(d) Employee satisfaction – Employee satisfaction is always very important for any
organization to grow. A satisfied employee is a productive employee. If your employee is
satisfied, you can relax because they will create a good and positive rapport for the company
in the market outside.
(e) Policy information – Always design your policies very strategically. A policy should
be designed in such a way that it holds good even after a long period of time. A frequent
internal policy change sends a message to the outer world that the company is not consistent
and knowledgeable and reliable.
(f) Customer orientation – Customers are always the most important factors. Always
keep your workforce motivated towards delivery of customer oriented services. Customers
can be of either type, internal or external.
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77. (g) Employee participation – Always try to ensure the maximum participation from the
employee side, either in terms of internal events participation or external events.
(h) Trained employees – Always ensure proper training of employees before they are
engaged in work. The training should be in all the aspects like policies, vision, mission,
organization. This will project a good picture of organization on the new employee.
These are few to count with but based on the requirement and strategy, the list may increase
or shorten.
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