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The Amara Raja Group (A): Building HRM C...

Varkkey, Biju, Sha...

Case

The Amara Raja Group (A): Building HRM Capabilities

Varkkey, Biju; Shaik, Farheen Fathima

IIMA-HRM0241(A) | Published January 3, 2019 | 34 pages Case

Collection: Indian Institute of Management, Ahmedabad

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The first company under the Amara Raja Group was established in 1984, i.e. Amara Raja Electronics Limited (AREL) followed by Amara Raja Batteries Limited (ARBL). Its founder leveraged the presence of his family in Renigunta, a rural village in South India, and chose to start the industry there to create employment opportunities. Preference is given to local population in all ARG enterprises. Despite its strong people orientation, the HR department/function at ARG got strengthened only after Jaikrishna strived to make it central to business. The department's evolution has been demarcated in three phases. The first and second phase saw few initiatives, and during the third phase the HR department was structured according to the Dave Ulrich Strategic HR Model. While this structure had been successful until now, certain sections in ARG still doubted its sustainability.

Understand the role of HR function in the family business context. Understand the Dave Ulrich Model of HR function in organizations and its benefits challenges. Expectations of owners and top management from the HR Function. Understand the framework of SHRM in large, multi unit business context.