HRM in Jio
HRM in Jio
INTRODUCTION
Reliance Jio Infocomm Limited, d/b/a Jio, is an Indian telecommunications company and
wholly owned subsidiary of Reliance Industries, headquartered in Mumbai, Maharashtra, India.
It operates a national LTE network with coverage across all 22 telecom circles. It does not
offer 2G or 3G service, and instead uses only voice over LTE to provide voice service on its 4G
network.
Jio soft launched on 27 December 2015 with a beta for partners and employees, and became
publicly available on 5 September 2016. As of 30 November 2019, it is the largest mobile
network operator in India and the third largest mobile network operator in the world with over
369.93 million subscribers. It is also the fourth largest provider of fixed telephony in Country.
In September 2019, Jio launched a fiber to the home service, offering home broadband,
television, and telephone services.
In June 2015, Jio announced that it would start its operations throughout the country by the end
of 2015.[12] However, four months later in October, the company postponed the launch to the first
quarter of the financial year 2016–2017.
Later, in July 2015, a PIL filed in the Supreme Court by an NGO called the Centre for Public
Interest Litigation, through Prashant Bhushan, challenged the grant of a pan-India licence to Jio
by the Government of India. The PIL also alleged that the firm was being allowed to provide
voice telephony along with its 4G data service, by paying an additional fee of just ₹165.8
crore (US$23 million) which was arbitrary and unreasonable, and contributed to a loss
of ₹2,284.2 crore (US$320 million) to the exchequer. The Indian Department of
Telecommunications (DoT), however, explained that the rules for 3G and BWA spectrum didn't
restrict BWA winners from providing voice telephony. As a result, the PIL was revoked, and the
accusations were dismissed.
The 4G services were launched internally on 27 December 2015. The company commercially
launched its 4G services on 5 September 2016 Within the first month, Jio announced that it had
acquired 16 million subscribers.] Jio crossed 50 million subscriber mark in 83 days since its
launch, subsequently crossing 100 million subscribers on 22 February 2017. By October 2017 it
had about 130 million subscribers.
Mobile broadband
The company launched its 4G broadband services throughout India in September 2016. It was
slated to release in December 2015 after some reports said that the company was waiting to
receive final permits from the government. Jio offers fourth-generation (4G) data and voice
services, along with peripheral services like instant messaging and streaming movies and music.
JioFiber
In August 2018, Jio began to test a new triple play fiber to the home service known tenatively as
Jio GigaFiber, including broadband internet with speeds ranging from 100 Mbps to 1 Gbps, as
well as television and landline telephone services.[29][30]
In August 2019, it was announced that the service would officially launch on 5 September 2019
as JioFiber, in honour of the company's third anniversary. Jio also announced plans to offer
streaming of films still in theatres ("First Day First Show") to eligible JioFiber subscribers.
The company has a network of more than 250,000 km of fiber optic cables in the country, over
which it will be partnering with local cable operators to get broader connectivity for its
broadband services
Devices
LYF smartphones
Main article: LYF
An image of LYF WATER 2 phone with IPS display.
In June 2015, Jio entered into an agreement with domestic handset maker Intex to supply 4G
handsets capable of voice over LTE (VoLTE). However, in October 2015, Jio announced that it
would be launching its own mobile handset brand named LYF.
On 25 January 2016, the company launched its LYF smartphone series starting with Water 1,
through its chain of electronic retail outlets, Reliance RetailThree more handset models have
been released so far, namely Water 2, Earth 1, and Flame
JioPhone
Illustration of a JioPhone
JioPhone is a line of feature phones marketed by Jio. The first model, released in August 2017
(with public pre-orders beginning 24 August 2017), was positioned as an "affordable" LTE-
compatible feature phone. It runs the KaiOS platform (derived from the defunct Firefox OS), and
includes a 2.4-inch display, a dual-core processor, 4 GB of internal storage, near-field
communication support, a suite of Jio-branded apps (including the voice assistant HelloJio), and
a Jio-branded application store. It also supports a "TV cable" accessory for output to an external
display.
In July 2018, the company unveiled the JioPhone 2, an updated model in a keyboard bar form
factor with a QWERTY keyboard and horizontal display. Jio also announced
that Facebook, WhatsApp, and YouTube apps would become available for the two phones
Jionet WiFi
Prior to its pan-India launch of 4G data and telephony services, the firm has started providing
free Wi-Fi hotspot services in cities throughout India including Surat, Ahmedabad in Gujarat,
and Visakhapatnam in Andhra Pradesh, Indore, Jabalpur, Dewas and Ujjainin Madhya Pradesh,
select locations of Mumbai in Maharashtra Kolkata in West Bengal, Lucknow in UttarPradesh,
Bhubaneswar in Odisha,Mussoorie in Uttarakhand, Collectorate's Office in Meerut, and at MG
Road in Vijayawada among others.
In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums
hosting the 2016 ICC World Twenty20 matches.
Jio apps
In May 2016, Jio launched a bundle of multimedia apps on Google Play as part of its upcoming
4G services. While the apps are available to download for everyone, a user will require a Jio SIM
card to use them. Additionally, most of the apps are in the beta phase. Notable apps include:
Affordable 4G phones
Reliance Jio has partnered with Google to manufacture "affordable" 4G handsets. These phones
will run exclusively on Jio network. The two companies are also working on developing
software for smart-TV services. Both were expected to launch in 2017.
JioFi
On December 24, 2015, Bollywood actor Shah Rukh Khan was appointed as Jio's brand
ambassador.
Pokémon Go
Controversies
In September 2016, the Telecom Regulatory Authority of India (TRAI) summoned Jio and the
country's existing telecom operators like Airtel, Vodafone, and Idea Cellular to meet and discuss
an issue regarding interconnection between the operators. This was a result after Jio complained
to TRAI and Department of Telecom (DoT) about other operators not honoring their commercial
agreements to let Jio use their network resources. The company further added that the operators
are trying to sabotage its entry into the telecom scene. However, DoT dismissed the request and
directed TRAI to help settle the dispute amicably. Moreover, the Cellular Operators Association
of India (COAI) requested TRAI to include all the operators in the discussion instead of the
three.
The incumbent operators had previously approached the country's PMO to reiterate their stance
they "are in no way obliged or in any position to entertain Jio's requests for interconnection
points as they do not have either the network or the financial resources to terminate the latter's
humongous volumes of potentially asymmetric voice traffic." Responding to this, Mukesh
Ambani, owner of Jio, said, "All operators have publicly said last week that they will provide
this (interconnect and MNP). So, we are waiting. These are all great companies. They have their
own reputations to protect. I am confident they won't violate the law." Commenting about
number portability, he added, "The number belongs to the consumer. No operator can cause
trouble if they want to change operators." However, on 12 September 2016, Idea Cellular agreed
to allow Jio to use 196 of its interconnection access points.
History
1960–1980
The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960's
as Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued
the polyester business of the firm. In 1966, Reliance Textiles Engineers Pvt. Ltd. was
incorporated in Maharashtra. It established a synthetic fabrics mill in the same year
at Naroda in Gujarat. On 8 May 1973, it became Reliance Industries Limited. In 1975, the
company expanded its business into textiles, with "Vimal" becoming its major brand in later
years. The company held its Initial public offering (IPO) in 1977. The issue was over-subscribed
by seven times. In 1979, a textiles company Sidhpur Mills was amalgamated with the company.
In 1980, the company expanded its polyester yarn business by setting up a Polyester Filament
Yarn Plant in Patalganga, Raigad, Maharashtra with financial and technical collaboration with E.
I. du Pont de Nemours & Co., U.S.
1981–2000
In 1985, the name of the company was changed from Reliance Textiles Industries
Ltd. to Reliance Industries Ltd.[16] During the years 1985 to 1992, the company expanded its
installed capacity for producing polyester yarn by over 145,000 tonnes per annum.
In 1993, Reliance turned to the overseas capital markets for funds through a global
depositary issue of Reliance Petroleum. In 1996, it became the first private sector company in
India to be rated by international credit rating agencies. S&P rated Reliance "BB+, stable
outlook, constrained by the sovereign ceiling". Moody's rated "Baa3, Investment grade,
constrained by the sovereign ceiling".
In 1995/96, the company entered the telecom industry through a joint venture with NYNEX,
USA and promoted Reliance Telecom Private Limited in India.
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance
Gas.
The years 1998–2000 saw the construction of the integrated petrochemical complex at
Jamnagar in Gujarat,[20] the largest refinery in the world.
2001 onwards
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters. In 2001–02, Reliance Petroleum was
merged with Reliance Industries.
In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in
nearly three decades and one of the largest gas discoveries in the world during 2002. The in-
place volume of natural gas was in excess of 7 trillion cubic feet, equivalent to about 1.2 billion
barrels of crude oil. This was the first ever discovery by an Indian private sector company
In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL),
India's second largest petrochemicals company, from the government of India.[24] IPCL was later
merged with RIL in 2008.
In 2005 and 2006, the company reorganized its business by demerging its investments in power
generation and distribution, financial services and telecommunication services into four separate
entities.
In 2006, Reliance entered the organised retail market in India with the launch of its retail store
format under the brand name of 'Reliance Fresh'. By the end of 2008, Reliance retail had close to
600 stores across 57 cities in India.
In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders.
In 2010, Reliance entered the broadband services market with acquisition of Infotel Broadband
Services Limited, which was the only successful bidder for pan-India fourth-generation (4G)
spectrum auction held by the government of India.
In the same year, Reliance and BP announced a partnership in the oil and gas business. BP took a
30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India,
including the KG-D6 block for $7.2 billion. Reliance also formed a 50:50 joint venture with BP
for sourcing and marketing of gas in India.
2016 – 2019
In July 2016, Mr. Mukesh Ambani, Chairman of Reliance Jio Infocomm Limited (RJIL)
launched its telecommunication services in India to fulfil the dream of his father, Mr. Dhirubhai
Ambani, a great doyen in the Corporate sector and founder of Reliance group of Industries in
India. Launch of RJIL drastically changed the dynamics of Telecom Industry in India. RJIL
empowered people by giving them free unlimited outgoing voice calls and data at low cost.
RJIL was successful in grabbing 150 million subscribers in the country. While other players like
Vodafone, Airtel, and Idea were struggling to grow with their existing technology and market
offerings, RJIL came out with a different technology like Voice over Long time evolution
(VoLTE), provided over a 4G network to give quality services to its customers. RJIL offered
faster communication to its subscribers at a low cost and hence offering more value for
customers. However, given the dynamic changes evolving in the Indian Telecommunication
Industry, intense competition among the various service providers and the drastic changes in the
needs and wants of the Indian consumers, is the success registered by RJIL sustainable?
In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl
rubber plant in Jamnagar, Gujarat, to be operational by 2018.
Shareholding
In January 2012, the company announced a buyback programme to buy a maximum of 120
million shares for ₹104 billion (US$1.5 billion). By the end of January 2013, the company had
bought back 46.2 million shares for ₹33.66 billion (US$470 million).
Listing
The company's equity shares are listed on the National Stock Exchange of India Limited (NSE)
and the BSE Limited. The Global Depository Receipts (GDRs) issued by the Company are listed
on Luxembourg Stock Exchange. It has issued approx. 56 million GDRs wherein each GDR is
equivalent to two equity shares of the company. Approximately 3.46% of its total shares are
listed on Luxembourg Stock Exchange.
Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the National
Stock Exchange of India Limited (NSE).
It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and Fitch.
Moody's and S&P have provided investment grade ratings for international debt of the company,
as Baa2 positive outlook (local currency issuer rating) and BBB+ outlook
respectively.[42][43][44] On the 28th of December, 2017, RIL announced that it will be acquiring
the wireless assets of Anil Ambani-led Reliance Communications for about ₹23,000 crores.
Operations
The company's petrochemical, refining, oil and gas-related operations form the core of its
business; other divisions of the company include cloth, retail business, telecommunications
and special economic zone (SEZ) development. In 2012–13, it earned 76% of its revenue from
refining, 19% from petrochemicals, 2% from oil & gas and 3% from other segments.
In July 2012, RIL informed that it was going to invest US$1 billion over the next few years in its
new aerospace division which will design, develop, manufacture, equipment and components,
including aircraft, engine, radars, avionics and accessories for military and civilian
aircraft, helicopters, unmanned airborne vehicles and aerostats.
On 31 March 2013, the company had 158 subsidiary companies and 7 associate companies.
Reliance Retail is the retail business wing of the Reliance Industries. In March 2013, it had
1466 stores in India. It is the largest retailer in India. Many brands like Reliance Fresh,
Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance
Trends, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home
Kitchens, Reliance Market (Cash n Carry) and Reliance Jewel come under the Reliance
Retail brand. Its annual revenue for the financial year 2012–13 was ₹108
billion (US$1.5 billion) with an EBITDA of ₹780 million (US$11 million).
Reliance Life Sciences
works around medical, plant and industrial biotechnology opportunities. It specializes in
manufacturing, branding, and marketing Reliance Industries' products in bio-
pharmaceuticals, pharmaceuticals, clinical research services, regenerative
medicine, molecular medicine, novel therapeutics, biofuels, plant biotechnology,
and industrial biotechnology sectors of the medical business industry.
Reliance Institute of Life Sciences (RILS), established by Dhirubhai Ambani Foundation,
is an institution offering higher education in various fields of life sciences and related
technologies.
Reliance Logistics is a single-window company selling transportation, distribution,
warehousing, logistics, and supply chain-related products, supported by in-house telematics
and telemetry solutions. Reliance Logistics is an asset based company with its own fleet and
infrastructure. It provides logistics services to Reliance group companies and
outsiders. Merged content from Reliance Logistics to here. See Talk:Reliance
Industries/Archives/2013#Merge proposals.
Reliance Clinical Research Services (RCRS), a contract research organisation (CRO) and
wholly owned subsidiary of Reliance Life Sciences, specialises in the clinical research
services industry. Its clients are primarily pharmaceutical, biotechnology and medical device
companies.[60]
Reliance Solar, the solar energy subsidiary of Reliance, was established to produce and
retail solar energy systems primarily to remote and rural areas. It offers a range of products
based on solar energy: solar lanterns, home lighting systems, street lighting systems, water
purification systems, refrigeration systems and solar air conditioners. Merged content from
Reliance Solar to here. See Talk:Reliance Industries/Archives/2013#Merge proposals.
Relicord is a cord blood banking service owned by Reliance Life Sciences. It was
established in 2002. It has been inspected and accredited by AABB, and also has been
accorded a licence by Food and Drug Administration (FDA), Government of India.
Reliance Jio Infocomm Limited (RJIL) previously known as Infotel Broadband, is a
broadband service provider which gained 4G licences for operating across India.
Reliance Industrial Infrastructure Limited (RIIL) is an associate company of RIL. RIL
holds 45.43% of total shares of RIIL. It was incorporated in September 1988 as Chembur
Patalganga Pipelines Limited, with the main objective being to build and operate cross-
country pipelines for transporting petroleum products. The company's name was
subsequently changed to CPPL Limited in September 1992, and thereafter to its present
name, Reliance Industrial Infrastructure Limited, in March 1994. RIIL is mainly engaged in
the business of setting up and operating industrial infrastructure. The company is also
engaged in related activities involving leasing and providing services connected with
computer software and data processing. The company set up a 200-millimetre diameter twin
pipeline system that connects the Bharat Petroleum refinery at Mahul, Maharashtra, to
Reliance's petrochemical complex at Patalganga, Maharashtra. The pipeline carries
petroleum products including naphtha and kerosene. It has commissioned facilities like the
supervisory control and data acquisition system and the cathodic protection system, a
jackwell at River Tapi, and a raw water pipeline system at Hazira. The infrastructure
company constructed a 71,000 kilo-litre petrochemical product storage and distribution
terminal at the Jawaharlal Nehru Port Trust (JNPT) Area in Maharashtra.[citation needed]
LYF, a 4G-enabled VoLTE device brand from Reliance Retail.
Network 18, a mass media company. It has interests in television, digital platforms,
publication, mobile apps, and films. It also operates two joint ventures, namely Viacom
18 and History TV18 with Viacom and A+E Networks respectively. It also have
acquired ETV Network and since renamed its channels under the Colors TV brand.
Reliance Eros Productions LLP, joint venture with Eros International to produce film
content in India.
Employees
As on 31 March 2018, the company had 29,533 permanent employees of which 1,521 were
women and 70 were employees with disabilities. It also had 158,196 temporary employees on the
same date which makes a total of 187,729 employees.[37] As per its Sustainability Report for
2011–12, the attrition rate was 7.5%. But currently, the same attrition rate has gone up to 23.4%
in March 2015 as per latest report released by the organization.
In its 39th Annual General Meeting, its chairman informed the shareholders of the investment
plans of the company of about ₹1,500 billion (US$21 billion) in the next three years. This would
be accompanied by increasing the staff strength in Retail division from existing strength of
35,000 to 120,000 in next 3 years and increasing employees in Telecom division from existing
3,000 to 10,000 in 12 months.
International Refiner of the year in 2017 at Global Refining and Petrochemicals Congress
2017.
International Refiner of the Year in 2013 at the HART Energy's 27th World Refining & Fuel
Conference.[1] This is the second time that RIL has received this Award for its Jamnagar
Refinery, the first being in 2005.
According to survey conducted by Brand Finance in 2013, Reliance is the second most
valuable brand in India.
The Brand Trust Report ranked Reliance Industries as the 7th most trusted brand in India in
2013 and 9th in 2014.
RIL was certified as 'Responsible Care Company' by the American Chemistry Council in
March, 2012.[
RIL was ranked at 25th position across the world, on the basis of sales, in the ICIS Top 100
Chemicals Companies list in 2012.
RIL was awarded the National Golden Peacock Award 2011 for its contribution in the field
of corporate sustainability.
In 2009, Boston Consulting Group (BCG) named Reliance Industries as the world's fifth
biggest 'sustainable value creator' in a list of 25 top companies globally in terms of investor
returns over a decade.
The company was selected as one of the world's 100 best managed companies for the year
2000 by IndustryWeek magazine.
From 1994 to 1997, the company won National Energy Conservation Award in the
petrochemical sector.
Controversies
The Ambani family holds around 45% of the shares in RIL. Since its inception, the company was
managed by its founder and chairman Dhirubhai Ambani. After suffering a stroke in 1986, he
handed over the daily operations of the company to his sons Mukesh Ambani and Anil Ambani.
After the death of Dhirubhai Ambani in 2002, the management of the company was taken up by
both the brothers. In November 2004, Mukesh Ambani, in an interview, admitted to having
differences with his brother Anil over 'ownership issues'.[83] He also said that the differences "are
in the private domain". The share prices of RIL were impacted by some margin when this news
broke out. In 2005, after a bitter public feud between the brothers over the control of the
Reliance empire, mother Kokilaben intervened to broker a deal splitting the RIL group business
into the two parts.[84] In October 2005, the split of Reliance Group was formalized. Mukesh
Ambani got Reliance Industries and IPCL. Younger brother Anil Ambani received telecom,
power, entertainment and financial services business of the group. The Anil Dhirubhai Ambani
Group includes Reliance Communications, Reliance Infrastructure, Reliance Capital, Reliance
Natural Resources and Reliance Power.
The division of Reliance group business between the two brothers also resulted in de-merger of 4
businesses from RIL.[87][88] These businesses immediately became part of Anil Dhirubhai
Ambani Group. The existing shareholders in RIL, both the promoter group and non-promoters,
received shares in the de-merged companies.
Relationship with ONGC
In May 2014, ONGC moved to Delhi High Court accusing RIL of pilferage of 18 billion cubic
metres of gas from its gas-producing block in the Krishna Godavari basin. Subsequently, the two
companies agreed to form an independent expert panel to probe any pilferage.
Scams
As early as 1996, Outlook magazine addressed other controversies related to fake and switched
shares; insider trading; and a nexus with the state-owned Unit Trust of India. Five main
allegations concerning Reliance, and which have plunged the Indian capital markets into a period
of uncertainty unsurpassed since the days of the securities scam were:
Insider trading
Stock market fraud regulator Securities and Exchange Board of India (Sebi) issued a show-cause
notice to Reliance Industries Ltd. following a probe into alleged insider trading in Reliance
Petroleum Ltd (RPL) shares in November 2007. SEBI probed transactions by entities that
participated in and led to some three months of speculative rally after which the RPL stock
surged to an all-time intraday high of Rs295 on 1 November 2007. In a separate and independent
investigation related to the same issue, the income-tax (I-T) department looked at possible tax
evasion by a dozen entities that Mukesh Ambani-owned RIL acknowledged to be its “agents”.[93]
In Jan 2011, Sebi barred Anil Ambani and four other officials of Reliance Group—until recently
known as the Reliance-Anil Dhirubhai Ambani Group (R-Adag)—companies from investing in
listed shares until December 2011. Two group firms, Reliance Infrastructure Ltd (R-Infra) and
Reliance Natural Resources Ltd (RNRL) were barred from making such investment until
December 2012. According to Sebi's investigations, R-Infra and RNRL were prima facie
responsible for misrepresenting the nature of investments in yield management
certificates/deposits, and the profits and losses in their annual reports for the fiscal years 2007,
2008 and 2009. It also found misuse of FII regulations. The then minister of state for finance
Namo Narain Meena, on 1 December 2009, in a written response to a query raised in the Upper
House of Parliament, said that three firms of R-Adag—R-Infra, RNRL and RCom—had violated
overseas debt norms. These end-use violations were observed by the Reserve Bank of India
(RBI) regarding two ECB transactions—of $360 million and $150 million—by R-Infra.[94]
In another case, Sebi settled a dispute with Reliance Securities Ltd (RSL) with a consent order
on June 2011, under which the brokerage will spend Rs1 crore within six months on investor
education and not add any new clients for 45 days starting 15 June. In the settlement, it was also
added that the brokerage will also pay Rs25 lakh towards settlement charges. This order
followed a Sebi investigation into RSL's books and accounts for fiscal 2007 and fiscal 2008,
which said that it had allegedly violated various clauses of Sebi stock brokers and sub-brokers
regulations. The Sebi inquiry cited 20 irregularities, including the brokerage not informing
clients about various charges at the time of opening accounts. RSL sought power of attorney in
the name of Reliance Commodities Ltd from clients and used this to debit clients’ bank accounts,
purchase and sell post office deposits and government of India bonds among other transactions.
Brokerage, not fully equipped to handle its customer base at the time, used the name Reliance
Money at all its offices and on employee visiting cards, instead of Reliance Securities, which
was the registered trading member, leading to confusion. Brokerage was found to have received
funds from other client bank accounts other than the ones available to it, thus failing to have a
sound third-party check on the receipt of payments. RSL had failed to update client details
despite the stock exchanges pointing this out in their inspection reports. The Sebi inquiry also
said RSL collected higher securities transaction tax from its clients in 2006-2008, allotted more
than one terminal in the same segment for a single user, and also collected cheques in the name
of Reliance Money. Brokerage also did not maintain clear segregation between broking and other
activities of group companies. Further, there were frequent disruptions in the brokerage's trading
platform, which showed connectivity problems at the applicant's end.
NICL
The Central Bureau of Investigation (CBI) filed a chargesheet in a Mumbai court against
Reliance Industries Limited (RIL) and four retired employees of National Insurance Company
Limited (NICL), including a former CMD, under provisions of the Prevention of Corruption Act
for criminal conspiracy and other charges. Acting on a reference from CVC in March, 2005, the
CBI started probing the conspiracy that led to the filing of the chargesheet on December 9, 2011.
The 2005 complaint had alleged irregularities in issuance of insurance policies — for coverage
of default payments — by NICL to RIL. Chargesheet also mentioned criminal offences with
dishonest intention and causing wrongful loss totaling Rs 147.41 crore to NICL and wrongful
gain to the private telecom provider.
Two retired senior officials of National Insurance Company Limited and 11 others were awarded
varying jail terms by a Delhi court in Jan 2014.
A business jet owned by Reliance Industries (RIL) was grounded by The Directorate General of
Civil Aviation (DGCA) on 22 March 2014 during a surprise inspection, for carrying expired
safety equipment on board; its pilot was also suspended for flying without a licence.
ONGC controversy
In May 2014, ONGC moved to Delhi High Court accusing RIL of pilferage of 18 billion cubic
metres from its gas-producing block in the Krishna Godavari basin.[99] Subsequently, the two
companies agreed to form an independent expert panel to probe any pilferage.
The Reliance Industries Limited (RIL) was supposed to relinquish 25% of the total area outside
the discoveries in 2004 and 2005, as per the Production Sharing Contract (PSC). However, the
entire block was declared as a discovery area and RIL was allowed to retain it. In 2011, the
Comptroller and Auditor General of India (CAG) criticized the Oil Ministry for this decision.
The CAG also faulted RIL for limiting the competition in contracts, stating that RIL awarded a
$1.1 billion contract to Aker on a single-bid basis.
A PIL filed in the Supreme Court by an NGO Centre for Public Interest Litigation, through
Prashant Bhushan, challenged the grant of pan-India licence to RJIL by the Government of India.
The PIL alleged that RJIL was allowed to provide voice telephony along with its 4G data
service, by paying an additional fees of just INR16580 million (US$280 million) arbitrary and
unreasonable, and contributed to a loss of INR228420 million (US$3.8 billion) to the exchequer.
The CAG in its draft report alleged rigging of the auction mechanism, whereby an unknown ISP,
Infotel Broadband Services Pvt Ltd, acquired the spectrum by bidding 5000 times its net worth,
after which the company was sold to Reliance Industries.
1.0 HUMAN RESOURCE MANAGEMENT
In any organization, managing personnel is the process of making sure the employees (not the
customers) are as productive as they can be. This can include hiring, firing, or transferring people
to/from jobs they can do most productively.
This subject is a major at many universities, or a minor in the business school. It is also known as
personnel administration, which is functionally an equivalent term.
A business unit needs employees to look after different activities. This is called manpower or
human resource. Such human resource needs to be developed fully so that it will make positive
contribution for the progress and prosperity of a business unit. For this systematic development
and management of human resources is necessary. Human Resource Management (HRM) deals
with:
(a) Training
(b) Self-development
(c) Promotions
(d) Performance appraisal of manpower recruited in an organization.
HRM is an organized learning experience aimed at matching the organizational need for career
growth and development. It is a process involving series of learning activities designed to
acquire desired level of competence among employees. HRM is a continuous process and it
needs money. Such investment creates a team of efficient, skilled and trained manpower which
brings success and stability to a business unit. HRM programmes offer long term benefits to an
organization.
HRM is basically concerned with the upgrading of manpower working in an organization. This
leads to improvement in the individual performance of an employee and also corresponding
improvement in the organizational performance.
HRM includes various schemes arranged for providing education, guidance, training and
opportunities to learn and develop employees of all categories and working in different
departments. There is an integrated use of sub-systems (training, career developments,
organizational development) in the HRM programme.
Learning, self-development, career developments are possible through HRM programmes. These
are the core areas of HRM. Career development is possible through joining training courses,
reading books and periodicals. Learning and career development raise the capacity of employees
to work at highest levels. They are given higher positions with monetary benefits.
HRM is basically for developing team spirit in the whole organization. For this, departments and
levels of management are properly integrated. Team spirit facilitates orderly growth of the
organization in the right direction.
All companies invest huge money on HRM activities but such expenditure is absolutely
essential for survival in the present competitive business world. HRM programmes create
matured, skilled and efficient manpower, which is a valuable asset of a business unit.
HRM is rightly treated as a continuous activity due to new developments taking place regularly
in the business world. For this, on the job and off the job training programmes are introduced
from time-to-time.
The scope of HRM programmes is very vast. It is multi-disciplinary in character. Training and
guidance are given on different aspects of business management to enable managers to deal with
complex managerial problems and challenges.
1.3 Need and Importance of Human Resource Management:
HRM programmes are needed in order to create stable, efficient, skilled and matured manpower
required by an enterprise for the present and future period.
HRM activities are needed for updating the quality of manpower as per the growing and
changing needs of an enterprise. This avoids managerial obsolescence. Even the vacancies
athigher levels can be filled in internally due to HRM programmes as they provide training and
opportunities of self-development to employees working at lower levels.
HRM programmes are necessary for survival in the present competitive marketing environment.
An enterprise can face market competition only by improving quality, reducing costs and
avoiding wastages. All this is possible through HRM.
Technological changes are taking place rapidly in every area of business. HRM programmes are
needed in order to absorb technological changes taking place with speed. In fact, introduction of
new technology, computers, automation, etc. will not be possible unless training is provided to
the manpower.
HRM is needed to meet the needs of employees in regard to self-development and career
development aspirations. Employees demand, training facilities, refresher courses, promotions
and transfers, career guidance, etc. for their self-development. HRM programmes are needed to
fulfill self-development and career development of employees.
HRM is needed to meet the future manpower needs of the organization. Executives, managers,
supervisors leave the job or retire due to age factor. Competent juniors must take their positions.
HRM is needed in order to keep ready a team of competent managers as a second line of
defence.
HRM activities are needed to meet the manpower requirements resulting from expansion and
diversification programmes undertaken at the enterprise level. Attention should be given to HRM
much before the introduction of expansion programme.
HRM is needed in order to use the available production capacity to the optimum level. It
provides skilled manpower for this purpose.