PROJECT REPORT ON

INDUSTRIAL VISITTO

BHARAT HEAVY ELECTRICALS LIMITED (BHEL)

andHERO HONDA MOTORS LIMITED

Submitted to:Dr. R.K. SinghDirector – M.B.A.-H.R. &I.RL.U. – I.M.S

Submitted by:Namita Gupta

M.B.A.-H.R. &I.R (3rd sem)L.U. – I.M.S.

Acknowledgement

H.R. & I.R. are important aspect of any organization as they deal with the organization’s most valued assets – people working there who individually and collectively contribute to the achievement of the objectives of the business. I am really grateful to L.U. - I.M.S for giving me the opportunity to visit the plant of Bharat Heavy Electricals Limited (BHEL) and Hero Honda, Haridwar and help gaining the practical knowledge which has been an immense learning experience.

I would like to thank Dr. R.K. Singh (Director, M.B.A.-H.R. &I.R.) and Dr. Archana Singh who arranged the visit and helped me enhance my knowledge.

My special thanks to Mr. Pankaj Kumar at BHEL and Mr. Arsh Rachit at Hero Honda who gave us useful information about the work life and various policies and procedures followed and helped made the visit a success.

I am also grateful to my seniors and friends who gave various useful suggestions and guidance for the completion of the project. For all those whom I have inadvertently forgotten, thank you for everything.

Table of contents

2

S. No. Contents Page No.1. Introduction 42. BHEL 52.1 Company Profile 62.2 About Haridwar plant 102.3 Observations 182.4 H.R. Perspective 202.5 Suggestions 313. Hero Honda 333.1 Company Profile 343.2 Observations 403.3 H.R. Perspective 423.4 Suggestions 454. Conclusion 47

Introduction

3

Visit to industrial plant helps provide a practical experience of what we study in classrooms and through the text books. They help make us understand how people in an organizational setting actually work together as a team and together coordinate towards achievement of organizational objectives.

Through this project, I provide my report on the industrial visit to Haridwar situated plant of BHEL and Hero Honda.

This visit was a part of industry interface program where the students got a practical view of organization and its working with a special emphasis to H.R. perspective.

The objective of this study was to impart knowledge in the field of H.R. & I.R. by the way of industrial exposure.

The methodology adopted for the study comprised of visit to the plant premises and observing. A question and answer round was also arranged where the queries were answered. Information available on the websites of BHEL and Hero Honda was also used.

Although the study is limited by various constraints of time, space (visit being limited to plant premises) and individual differences etc, yet it has been an immense learning experience for all students of M.B.A. - H.R & I.R.

4

BHARAT HEAVY ELECTRICALS LIMITED

(BHEL)

Company profile

5

In 1956 India took a major step towards the establishment of its heavy engineering industry when Bharat Heavy Electricals Ltd., (BHEL) setup at Bhopal. It progressed rapidly and three more factories went into production in 1965. The main aim of establishing BHEL was to meet the growing power requirement of the country. BHEL appeared on the power map of India in 1969 when the first unit supplied by it was commissioned at the Basin Bridge Thermal Power Station in Tamilnadu. Within a decade, BHEL had commissioned the 100th unit at Santaldih, West Bengal.

Today, BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. BHEL was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. 

BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight service centres and 18 regional offices, enables the Company to promptly serve its customers and provide them with suitable products, systems and services -- efficiently and at competitive prices. The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centres.

BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL's operations are organized around three business sectors, namely Power, Industry - including Transmission, Transportation,

6

Telecommunication & Renewable Energy - and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market.

BHEL's vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player.

The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management - all these have engineered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

 

BHEL has taken India from a near total dependence on imports to complete self-reliance in this vital area of power plant equipment. BHEL has supplied 97% of the power generating equipment that was commissioned in India during 1979-80. BHEL has already supplied generating equipment to various utilities produce annually; equipment capable of generating 6000MW. This will grow further to enable BHEL to meet all of India’s projected power equipment requirements, as well as sizeable portion of export targets.

Probably the most significant aspect of BHEL’s growth has been its diversification. The constant reorientation of the organization to meet the varied needs in time with time a philosophy that has led to the development of a total capability – from concept to commissioning not only in the field of energy but also in industry and transportation. In the world power scene, BHEL ranks among the top ten manufacturers of power plant equipment and in terms of the spectrum of products and services offered, it is right on top.

BHEL’s technological excellence and turnkey capabilities have won it world wide recognition. Over 40 countries in the world over have placed orders with BHEL covering individual equipment to complete power

7

stations on a turnkey basis. In 1978-79 export earnings reached Rs.122 crores, the highest for any year.

BHEL has its headquarters at New Delhi. Its operations are spread over 11 manufacturing plants and number of engineering and service divisions located across the country. The service divisions include a network of regional branch offices throughout India.

BHEL is aware that both its national and international commitments will increase greatly in the years to come. And it faces the challenges and the tasks ahead with the confidence acquired through the wealth of experience in the world market it serves.

FACTORIES

BHOPAL Heavy Electrical Equipment Plant

BANGLORE Control Equipment Division, Electro-Porcelain Division

HARDWAR Heavy Electrical Equipment Plant & CFFP

GOINDWAL Industrial Valves Plant

JAGDISHPUR High Tension Ceramic Insulation Plant

JHANSI Transformer Plant

HYDERABAD Heavy Power Equipment Plant

TIRUCHIRAPALLI High Pressure Boiler Plant

RANIPET Boiler Auxiliaries Project

8

COLLABORATORS

Combustion Engineering Inc. U.S.A.

Air Preheats Co. Inc. U.S.A.

Suljew Brothers Switzerland

Internation General Electrical Co. Inc. U.S.A.

Creuset Loire France

Nuoveo Pignore S.P.A. Italy

Svenska Flaktabrites Sweden

Siemens Ag. W. Germany

English Electric Co. U.K.

Pronum Ashenport U.S.S.R.

Hitachi Japan

Weir Pumps Ltd. U.K.

9

AT HARIDWAR

Against the picturesque Shivalik foot hill of the Himalayas and on the banks of the holy Ganges in Ranipur near Hardwar are located the two manufacturing plants of BHEL: Heavy Electrical Equipment Plant (HEEP) and Central Foundry Forge Plant (CFFP) employing abut 10000 people.

Heavy Electrical Equipment Plant is equipped to produce steam and Hydro Turbines with matching Generators, Industrial manufacturing Thermal sets up to 1000MW capacity.

Located immediately south of HEEP is the Central Foundry Forge Plant setup.

The Pollution Control Research Institute (PCRI) has also been set up at BHEL, Hardwar with the help of United Nations Development Program (UNDP). The institute is located just below the Shivalik hills towards the northern side of HEEP.

The Heavy Electrical Equipment Plant was set up in technical collaboration with M/s Prommash-export of USSR. The construction of the plant commenced in 1962 and the production of equipment was initiated in early 1967. In 1976, BHEL entered into a collaboration agreement with M/s Kraftwerk Union A.G. of West Germany for design, manufacture, erection and commissioning of large size steam turbines and turbo generators of unit rating up to 1000MW.

Much before the manufacturing of the first electrical machine at HEEP BHEL Hardwar, the HRD Centre was established in the year 1963. known as Technical training School in the yesteryears, the foundation stone of HRD was laid on 17th July 1963 by the then Chief Minister of Uttar Pradesh, Late Shri C.B.Gupta. The Technical Training School of 1963 became popular as Training School in the later years. In fact the campus and building of HRD was the first to be built in BHEL Township. The earlier years saw training of first batch of artisans and engineers in the erstwhile ‘Technical Training School’. The Centre was utilized for large scales fabrication activity, which helped the erection of Heavy Electrical Equipment Plant.

Over a period of 36 long years spanning more than three decades, the center has grown both in its field of activities and magnitude of efforts made to develop human resource. Initially the objective was solely training of artisans who were to man the plant of HEEP. Skill training in the various trades relevant to the plant was indeed the primary goal. The scope and function of the Centre later expanded to include training of supervisors, engineers and managers. The growth of Center kept pace with the demands of changing technology and complexities of management due to ever changing environment conditions.

10

PRODUCT PROFILE OF HEEP

S.No. PRODUCT RANGE

1.

2.

3.

4.

5.

6.

7.

8.

Thermal sets

Hydro sets

Gas Turbines Combined Cycle Power Plant. Electrical Machines.

Medical equipment.

Equipment for Nuclear Power Plant.

Control Panel.

Defense equipment.

Steam Turbines & Turbo Generators of unit size upto 1000 MW.

Custom-built conventional Hydro Turbine of Kaplan, Francis & Pelton with matching generators upto 250 MW unit size.

60,150 & 200 MW.ISO Ratings.With Steam Turbines upto 300 MW.

Medium & Large sized AC/DC Electrical Machines various capacities upto 20MW

4-6 MeV Linac Accelerator Machine for treatment of cancer.

Turbines & generators up to 500MW Steam generator up to 500MW unit size, Reheaters/Separators, Heat exchangers & pressure vessels.

Control panel for voltage upto 400 kW & control desks for generating stations & EMV sub-stations.

Naval guns with collaboration of Italy.

PRODUCT PROFILE OF CFFP

S.No. PRODUCT RANGE1.

2.

3.

4.

Steel castings.

Steel forging shafts.

Rings.

Discs.

Up to 50 T/pc.wt. Cast weld upto 80T/pc.wt.

Up to 55T/pc.wt.Max. Dia 2000 mm.Length – 14m.

Max. Dia 3000mm. Thickness- 3800mm.

Max. Dia. 3500mm.Thickness-variable.

11

CHART SHOWING THE DIFFERENT BLOCKS OF BHEL, HARIDWAR

12

BHARAT HEAVY ELECTRICALS LTD.

HARDWAR

HARDWAR

HEEP (HEAVYEL ECTRICALEQUIPMENT PLANT)

CFFP (CENTRAL FOUNDARYFORGED PLANT)

BLOCK-2: HEAVY FABRICATION SHOP

BLOCK-3: TURBINE MANUFACTURING BLOCK

BLOCK-4: CIM (COILS & INSULATION MANU- FACTURING) BLOCK

BLOCK-5: CONDENCER FABRICATION & FORGR BLOCK

BLOCK-6: FABRICATION SHOP, DIE SHOP,STAMPING SHOP)

BLOCK-7: CARPANTARY SHOP

BLOCK-8: HEAT EXCHANGER SHOP

BLOCK-1: ELECTRICAL MACHINE SHOP

DESCRIPTION OF 8 BLOCKS OF HEEP

BLOCK-1< This is the main block of HEEP named as Electrical Machine Shop. The main products of this block –1 are turbo generators, hydro generators & AC and DC motors.

BLOCK-2< This is a Heavy Fabrication Shop in which fabrication of all type of parts of turbines as well as generators are done.In this block work is divided into four steps namely Bay-1, Bay-2, Bay-3, and Bay-4.In Bay-1 Preparatory work is been done i.e. cutting, shaping, grinding, pressing etc. In Bay –2 & Bay-3 assembly work is done. Bay-4 is called HMS (Heavy Machine Shop) in which all types of components of turbine, generators and motors are manufactured.

BLOCK-3< This block is called Turbine Manufacturing Block. This block contributes maximum in terms of turnover. Here steam, Gas & Hydro all three types of turbines are manufactured. This Block also divided into 4 Bays. And these bays are further divided into several sections and shops.

CHART SHOWS THE CLASSIFICTION OF THE BLOCK-3

13

BLOCK -4< Block-4 is called as CIM (COILS & INSULATION) BLOCK. In this block coils of Generators & motors are made & assembled. Also insulation of all DC & AC motors and Generators are done.

BLOCK-5< Block-5 is called as CONDENSER FABRICATION & FORGE BLOCK. All type of condenser used for refrigeration purpose in turbines are fabricated here.

BLOCK-6< Block –6 is divided into 3 parts Fabrication shop, Die shop, Stamping shop.

Block-7< This Bock is called as CARPENTRY SHOP. In this Block all carpentry work is done such as making of wood pattern for casting purpose, making of fixtures, large wood container used for packing of several jobs like different components of Turbines, Generators, motors etc.

Block-8< This is the last block of Heavy Electrical Equipment Plant (HEEP) named as HEAT EXCHANGER SHOP. In this Block all type of Heat Exchanger of Steam turbines are manufactured.

BLOCK-3

BAY-1 BAY-2 BAY-3 BAY-4

HMS (Heavy Machine shop)

ASSEMBY SECTION

OSBT

HMS

ASSEMBLY SECTION

BEARING SECTION

TURNING SECTION

ASSEMBLY SECTION

GOVERNING SECTION

BLADE SHOP

TURNING SECTION

HEAT TREATMEN-T SECTION

14

DEPARTMENTS OF BHEL (HARDWAR)

Engineering & commercial. Personnel & Administration. Works engineering & services. Finance. Electrical Machine manufacturing. Turbine manufacturing. Fabrication & Welding. Quality Management. Technology & Tool room. Insulation system & G.R.I. Material Management. Defense projects Business Development. Productivity & TQM. Resource planning & Technological development. Quality surveillance. Material Management & Inventory control. Gas Turbine projects. KWU(Kraft Work Unit) collaboration

15

Vigilance. Pollution control research Institute.

Beside these there are four sub-departments which are controlled by personnel & administration. They are as follows:-

Personnel. Township administration & Development. Medical. Human Resource Development Center or training center.

The personnel dept. has been further sub-divided into the following

1. Personnel (OE & Policy)2. Personnel (E & C / IR)3. Operation cell4. Welfare5. Canteen6. General Administration cell / legal7. Law8. Recruitment cell9. Liaison cell10. Manpower Planning

CLASSIFICATION OF EMPLOYEES OF BHEL (HARDWAR)

EXECUTIVES1. ED2. GM3. AGM4. Sr. DGM5. DGM6. Sr. Manager7. Manager8. Dy.. Manager9. Sr. Engineer/Sr. Personnel Officer/Sr. Adm. Officer. 10. Stores Officer/Sr. Accounts Officer11. Engineer/Personnel Officer/Adm. Officer/ 12. Store officer/Accounts Officer

SUPERVISORS

1. Sr. Executive Foreman2. Executive Foreman3. General Foreman/Chief Supervisor

16

4. Foreman/Store holder Grade I/Sr. Accountant Grade I/ Sr. Officer Superintendent

5. Asst. Foreman/Store holder Grade II/Accountant Grade II / Officer superintendent6. Charge man/Store holder Grade III/Accountant Grade III/ Asst. Officer

superintendent

TECHNICIAN

1. Chief Technician2. General Technician3. Master Technician4. Sr. Technician5. Technician

ARTISANS

1. Electrical Grade I,II,III,IV2. Draftsman Grade I,II,III,IV 3. Fitters Grade I,II,III,IV4. Machinist Grade I,II,III,IV5. Turner Grade I,II,III,IV6. Welder Grade I,II,III,IV7. Winder Grade I,II,III,IV8. Rigger Grade I,II,III,IV9. Crane Operator Grade I,II,III,IV10. Lab. Assistant Grade I,II,III,IV11. Black smith Grade I,II,III,IV12. Patternmaker Grade I,II,III,IV

CLERICAL STAFF (NON-SUPERVISOR)

1. Librarian2. Compounder3. Pharmacists4. Nurses5. Dresser6. Telex/Telephone operator7. Driver

UNSKILLED/SEMI-SKILLED WORKERS:

1. Peons2. Mails3. Sweepers

Workers on daily wages etc.

17

Observations

BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. BHEL manufactures over 180 products under 30 major product groups and caters to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation, Telecommunication, Renewable Energy, etc.

The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R&D centres.

18

The greatest strength of BHEL is its highly skilled and committed employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management - all these have engineered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness.

BHEL has its headquarters at New Delhi. Its operations are spread over 11 manufacturing plants and number of engineering and service divisions located across the country.

At Haridwar, against the picturesque Shivalik foot hill of the Himalayas and on the banks of the holy Ganges in Ranipur are located the two manufacturing plants of BHEL: Heavy Electrical Equipment Plant (HEEP) and Central Foundry Forge Plant (CFFP) employing abut 10000 people. The Pollution Control Research Institute (PCRI) has also been set up at BHEL, Hardwar with the help of United Nations Development Program (UNDP).

As one enters the premises one is beauty struck by the green grass, lush trees and blooming flowers. The factory premise is absolutely clean and free from effluvia. Proper arrangement is made for ventilation. The environment is eco-friendly and total pollution free. There are no fumes, smoke, hazardous gases etc.

The work atmosphere is healthy and comfortable. Due importance is given to hygiene and safety of workers. There is provision of healthy sanitary facilities, such as supply of potable water, disposal of wastes, good housekeeping and the like.

The general shift of workers is 8:00 to 5:00. There is no night shift for women workers.

Workers participation in management is encouraged here. There are 5-6 trade unions of employees functioning at BHEL.

BHEL is also involved greatly in corporate social responsibility. Villages nearby are provided with free medical facilities. Schools such as DPS, Central Schools are supported by BHEL.

19

H.R. Perspective

PERSONNEL DEPARTMENT IN B.H.E.L (HARIDWAR):

The corporate personnel objectives enshrined in the company’s corporate plan first issued in 1974 are:

“To evolve a participate style of management which will ensure working conditions & job satisfaction to all employees, wage commensurate with their performance, career advancement & goodwill amongst all employees, & respect for the human individual.”

OBJECTIVES:

20

To plan the manpower requirement & budget the human resources with necessary qualification, skills, aptitude, merit & suitability in accordance with the organizational requirements.

To ensure that the company attracts & retains the best of personnel in each of the areas of functioning.

To focus on placement of employees in the job to which they are best fitted.

To adapt to & fulfill the socioeconomic commitment of the govt. to the unfortunate/minority sections.

To systematically build up a model system for the guidance of & emulation by other enterprises both in the public & private sectors.

Various sections & sub-section at work in personnel division of HEEP, Hardwar is called CELLS. A brief overview of the functioning & basic procedure carried out at different cells of personnel division is as follows:

MAN POWER PLANNING:

1. “Man power planning” & “Human resources” planning are synonymous. In the past, the phrase manpower planning was widely used; but now the emphasis is on human resource planning which is broader based.

Human resources & manpower planning is the process by which a management determines how an organization should move from its current position.

2. Man-power planning, in any organization makes sure that right person is available at the right time for doing a specified job which they can do most economically. It deals with the manpower policy of the company, i.e., whether it let the system go on as it is or it undergoes a continuous evaluation of vacancies being created, the cause for these vacancies, viz., retirements, death, resignations, transfers etc. It sees that a continuous review is done & efforts are made for refilling the posts.

Each department sends its manpower requirement to man-power-planning

department. On the basis of this chart, manpower summary is prepared which includes present number of employees, addition & deletion in the

21

number during the coming six months & the anticipated number of employee after 6 months.

RECRUITMENT: Recruitment is the process of identifying the sources of potential employees

& encouraging them to apply for jobs in the organization. The main purpose of recruitment is to create a pool of candidates from which personnel with required skill could be selected.

Various departments give number of employee's shortfalls in their respective departments, because of retirement, death, transfer etc. of the employees, to productivity services department. Then productivity service department checks whether the number of persons demanded are actually required or not. This department sends information to manpower planning department, whose job is to get sanction from corporate office, the recruitment section comes into action.

SOURCES OF RECRUITMENT: From employment exchange. From advertising in newspapers. Through campus interview of reputed engineering/ management institute. From the post of technical/professional personnel maintained by the N.C.S.T & other governmental agencies. Any other sources as approved by the competent authority in Exceptional circumstances.

MODE OF RECRUITMENT:

A. Unskilled, Semiskilled, Skilled & Supervisor group: These posts are filled by external source & simultaneously, an internal

advertisement is issued for information of such of the employees who may wish to be considered in the selection.

B. Executive & Senior executive cadre: Normally the advertisement is issued in leading daily newspaper to tap fully

the potential available in the open market. Simultaneously a notification is sent to DGET with a request to sponsor suitable candidates, if any, registered roaster.PREFENCES IN RECRUITMENT:

22

Giving reservation to scheduled cast/scheduled tribes, ex-serviceman, backward classes etc. All units/division sends a periodically reports to the corporate office are required.

Ex-propriated land owners. Dependent of deceased employees. Physically handicapped. Outstanding sportsman.

INDUSTRIAL DISPUTE CASES/ LEGAL CELL: The personnel department in HEEP unit of B.H.E.L. has a separate cell

dealing with the entire dispute arising between an employee & employer. In case employee has some problem, he first contacts his immediate superior. If that person is not satisfied with superior’s decision, he goes to the Conciliation Officer, an officer appointed by the state govt. for dealing with the industrial cases. The Conciliation Officer summons both the parties for the negotiation. He acts as a mediator while case discussed between an employee & employer. If both the parties mutually come to an understanding, then the problem is solved otherwise the Conciliation Officer sends a failure report to the state govt.

The state govt. then sends the case to Labour Courts or Tribunals, depending on the nature of the case. Labour Courts are meant for the discussion of specific matters concerning money i.e., regarding problems in payment of salary etc. is negotiated in Tribunals. There, the discussion takes place with all proof & evidence. The proceedings of labour court are called Adjudication. The decision given by these courts is final & no petition can fill against it in the High Court, unless the decision is against any article or clause. In case the decision taken in the Labour court has broken some law, petition or writ can be filled in the High court.

INDUSTRIAL RELATION The relations between employer & employer, employer & employee,

employee & employee in an industry are called industrial relations. If in an organization the productivity is positive then the industrial relation is said to be positive & vice-versa.With the approval of the govt. & drawing upon mutual faith, trust, & understanding which the management & the labour elicited towards each other, foundation was laid to create a forum for discussions on the problemsfaced by the two group in an open atmosphere. The joint committee was set up in 1973 at the apex level.

23

Encouraged by the success of Joint Committee at the apex level & consequent on the development & growth of atmosphere of cordiality & mutual understanding between the management and the employees, fruit of the apex level efforts have percolated down to the grass-roots through introduction of the scheme for “WORKER ASSOCIATION IN INDUSTRY” at the plant level & the shop floor level.

WELFARE:

The employees are the assets of the company & so it is the duty of the company to look after the welfare of the employees.

If we look after the employees & motivate them they will become more

productive & efficient. Besides the monitory remuneration to the employees, the company should also make various schemes for the welfare of employees providing adequate facilities in the area of education, medical, housing, canteen, sports & cultural activities.

At B.H.E.L., the company is providing plant performance, shoes, dress, insurance, death relief fund & medical facilities to its employees. On joining the organisation, it is statutory binding on part of the company to give 1 jerkin, 3 trousers & 2 shirts to its employees & on alternative years; the company provides 1 cotton shirt, 1cotton pant & 1 jerkin. The shoes are given after every 2 years & a watch is given to the employees, once in their lifetime.

The company’s townships at the manufacturing units have schools, where

children of most of the employees studied. Medical facilities have been provided in the township through full-fledged hospitals, clinics & peripheral dispensaries, manned by qualified medical staff.

HEEP unit of B.H.E.L. has a separate dealing with welfare activities of the employees. Its working is mainly governed by:a) Factories Act, 1948b) U.P. Factory Rules, 1950c) U.P. Welfare Officer’s Rule, 1955d) Safety Officer’s Act, 1984e) U.P. Safety Officer’s Rule, 1984f) Employee’s Safety Insurance Act, 1948g) Workmen’s Compensation Act, 1923

24

h) Trade Union’s Act, 1926

SECURITY OFFICER: Due to its large size there are 4 posts of security officer in B.H.E.L.

This security measures for safety of employees.

WELFARE OFFICER: There are two welfare officers who look after facilities like sanitary &

medical facilities, arrangement for travel to & from the place of work, & for the accommodation of workers employed at a distance from their homes; & such other services, amenities & facilities including social security measures, as contribute to the condition under which worker are employed.

WELFARE AMENITIES: Welfare amenities provided by B.H.E.L. is divided into two categories: a) Welfare inside the establishment b) Welfare outside the establishment

WELFARE AMENITIES INSIDE THE ESTABLISHMENT: Latrine & urinals Washing & bathing facilities Creches Rest shelter & canteen Arrangement for drinking water Health service, including occupational safety Uniform & protective clothing's Shirt allowances New Year gift, calendar, diary etc. WELFARE AMENITIES OUTSIDE THE ETABLISHMENT Maternity benefit Social security measures(including gratuity, pension, provident fund &

rehabilitation) Medical facilities to the family of the employees Educational facilities in H.R.D. center Housing facilities Recreation facilities( including sports, cultural activities, library,

community center, reading rooms)

25

Holiday home & L.T.C. facilities Shopping center’s in all 6 sectors & providing gas for cooking Vocational training for dependent of workers Welfare program for widows of workers Transport facilities to the employees who reside long distance from

organisation Mosquito control center

PERSONNEL ESTABLISHMENT: Once the person has been recruited, his personal file is opened & is send to

the establishment section, to maintain all the records concerning him. In his personal file, the person’s day to day requirement & all details regarding him are recorded for this purpose.

HEEP unit of B.H.E.L. has four different cells: OFFICER ESTABLISHMENT CELL:

This cell maintains the files of all executives of B.H.E.L., Hardwar. OPERATION CELL:

This cell maintains the file of all the non-executives working inside the plant.

ENGINEERING & COORDINATION CELL: This cell maintains the file of all the non-executives working in engineering

building.

ADMINISTRATION CELL: This cell maintains the file of all the non-executives of administrative

building & all the hospital employees. Once the establishment section starts maintaining an employee’s file, it

states that the particular employee has completed his probation periods at the factory & is now regularized. Then he is given various facilities like LTC, festival advance, vehicle advance, house building advance etc. a separate record is maintained for each & every loan & advance taken by him.

B.H.E.L. give LTC (leave travel concession) to its employees once in two year calendar years, for traveling upto 1500 Km (one way) at any place in India. A separate LTC ledger has been mentioned (a file type document), in which there is a separate seat for each employee, according to his staff

26

number. In this ledger all the details regarding his LTC, are mentioned, like how many time he has taken LTC, for going to which place, how many family members accompanied him etc. Thus, if a person applies for LTC, his record is checked that whether he is eligible for it or not. Then only LTC is sanctioned.

An employee in B.H.E.L. is given an annual increment, at the end of each

financial year. Then after three or four year of joining, his name is included in promotion seeker’s list. Departmental recommendations come, his record is checked & accordingly he is promoted.

For calculating the salary of workers, punch cards are maintained by respected departments, in which an employee’s presents & absents are marked. Then these punch cards are send to the computer centers for calculations of salary.

For non-punching staff (i.e. executives), a statement signed by an officer, is send to payroll, by respective departments, then it is send to the computer center.

After every 10 years, pay scales are revised. New pay is fixed according to the old pay of the employees. Personnel department, finance department & computer center work together to revise the pay of the employees.

CANTEEN: The HEEP unit of B.H.E.L. has five large industrial canteens, providing

lunch, dinner, tea & snacks to the employees. There are 9 canteens providing only tea & snacks to the employees in the administrative building, aviation, hospitals, PCRI (pollution control research institute) etc.

All these 14 canteens have a work force of around 155 workers & supervisors & 7 executives. Around Rs. 175 crores is the annual expenditure incurred by these canteens.

The canteens buy maximum raw material like flour, sugar, ghee etc. from government agencies. Spices etc. is brought from ladies club, which charges 10% extra charge for providing clean pulses & other raw material.

The 7 executives working at the canteens are responsible for operation, storage, procurement & planning.

The food, tea & snacks provided at B.H.E.L. canteens are very much subsidized.

The govt. provides subsidy of around RS. 150,00000 per year.

27

A canteen advisory committee is there, which is responsible for proper working & maintenance of the canteens. It checks the menu, quality of material used, quality & selling cost of the product. It also keeps a check on proper timings of tea & food.

The five large canteens each have a mechanical flour kneader, a potato peeler & large slabs where around 15 to 20 chapattis can be prepared at one time.

Drinking a cup of tea at around 9:30 or 10:30 a.m. & again at around 3:00 p.m. has been such a regular activity of B.H.E.L. employees. After getting a tea break, they feel more enthusiastic & fresh. Hence, proper & timely working of canteens is a must for enhancing the efficiency of workers.

GENERAL ADMINISTRATION: General administration has got the following area of functioning, they are:

House building advance. Death relief fund. Contract labour. Night duty/ Gate duty.

HOUSE BUILDING ADVANCE: To enable the B.H.E.L. employees to construct their houses at their

convenience, there is a provision of arranging house-building advance. Previously B.H.E.L. used to provide loan to its employee from its own fund but know due to scarcity of fund, there is provision of getting HBA through legal agencies. B.H.E.L. however does lend the loan but pays the difference of interest rate which B.H.E.L. would have charged, incase B.H.E.L. would have lend the money through its own fund.

In other words, previously B.H.E.L. used to give loan at around 9% interest rate but now it doesn’t provide loan. Instead it allows a person to take loan from any outside agency like LIC, HUDCO etc. which provide loan at a higher rate of interest i.e. around 15%-16%. BHEL pays the difference in the rate of interest, i.e. 6%-7%.

To apply for loan, a form is filled by the applicant & he submits his estimated sum, photocopy of registry, plot number, its area, his present address, his designation etc., with the sanctioned letter, it is submitted with BHEL & the applicant is given the difference in the rate of interest along with his pay, by payroll department.

Mode of recovery-

28

Recoverable in equal monthly installments (EMI) within a period not exceeding 25 years.

DEATH RELIEF FUND: It is a voluntary scheme in which the regular employees are the members &

they contribute Rs.2 per employee in the event of death of the members of the fund.

Presently, the HEEP unit, 99.9% employees are the members of the fund. The basic aim of forming the fund is to provide immediate financial help to the aggrieved family members of an employee, at the time of its death.

CONTRACT LABOUR: The contract labours are engaged for work, which is not of a perennial nature

cleaning, dusting of township, hospital, guesthouse, canteen etc.

HINDI POLICY CELL/ RAJBHASHA CELL: Apart from all other mentioned section, the personnel dept. at HEEP,

Hardwar has a separate section for the promotion of our national language-Hindi.

This section has taken several steps for increasing the use of Hindi, in the unit. Some of these steps are: Every day a new Hindi word, along with its English version is written on

the boards placed at different places in the unit. All the nameplates at the doors are having name first written in Hindi,

then in English. Rajbhasha cell repeatedly asks the units authorities to write all the

official letters in Hindi. Even the calendar of BHEL has dates & months in Hindi.

This aim of establishing a separate cell for promotion of Hindi language is to develop a feeling of nationalism, among the citizens. We should take pride in using our national language.

29

LIASION / SC & ST CELL: Liaison cell helps in maintaining good communication in between the plant

& tries to make them better & seek methods to improve it & also gives directive too.

Another function of Liaison cell is to approach or to settle any grievance through department & shop council.

It also sees to uplift the SC/ST in the organisation, so that nobody encroach their right. This department has legal authority as they have presidential directive, which every public sector must follow.

TRAINING:

Yearly training is given to all employees whether workers or executives. Workers are given on the job training. Off the job lectures are also given.

Executives are send on 15 days training on every promotion in Noida HRD centre.

HEALTH AND SAFETY: Adequate health and safety measures are adopted at BHEL. Workers on or

near noisy machines are provided with ear plugs. Accidents are nil. In case an accident occurs, immediate action is taken to protect the safety of workers.

30

Suggestions

There are however certain areas in which the policies need to be reviewed.

These areas are as follows:

Grievance Settlement Cell:

Unsatisfied Grievances lead to dissatisfaction which has a negative impact

on the productivity and performance of the employee. Many a times the

employees feel reluctant to reach their superior in order to redress their

31

grievances. Thus there should be one such grievance settlement cell which

could cater to the needs of the employees.

Corporate social responsibility:

BHEL being the largest engineering and manufacturing enterprise in India

and having the capability should engage itself in much more activities for

the benefit of the society as a whole. It should assume grater social

responsibility than the present.

Employee Involvement:

The company should plan out employee involvement programmes which

draw its sources from a number of motivational theories. Therefore one of

the best examples of such programme could be quality circles. This would

provide employees with intrinsic motivation by increasing opportunities for

growth, responsibility and involvement in the work itself.

Performance appraisal:

Beside using the Graphic Rating method, the company should also use other methods like 360 degree Appraisal technique for evaluating the performance as it provides a broader perspective about an employee’s performance, i.e. “Multi Rater” system would maximize the breadth of information and cancel our biases unique to particular source so that it can be used as a more appropriate way of appraising employees and which would also help to increase the credibility of the appraisal in the opinion of the employees.

A post appraisal interview should be arranged, so that the employees may be supplied with the feedback and the organization may know the

32

difficulties which the employees are facing, so that their training needs may be discovered.

33

HERO HONDA MOTORS LIMITED

Company profile

The Hero Honda story began with a simple vision – the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s commitment to customer, quality and excellence, and while doing so, maintains the highest standards of ethics and societal responsibilities. Twenty five years and 25 million two wheelers later, Hero Honda is closer to fulfilling this dream.

Hero Honda has been the largest two wheeler company in the world for eight consecutive years. The company crossed the ten million unit milestone over a 19-year span. In the new millennium, Hero Honda has scaled this to 15 million units in just five years!

34

Over the course of two and a half decades, and three successive joint venture agreements later, both partners have fine-tuned and perfected their roles as joint venture partners. As one of the world's technology leaders in the automotive sector, Honda has been able to consistently provide technical know-how, design specifications and R&D innovations. This has led to the development of world class, value - for- money motorcycles and scooters for the Indian market. On its part, the Hero Group has taken on the singular and onerous responsibility of creating world-class manufacturing facilities with robust processes, building the supply chain, setting up an extensive distribution networks and providing insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Honda is recognized today as one of the most successful joint ventures in the world. It is therefore no surprise that there are more Hero Honda bikes on this country's roads than the total population of some European countries.

Hero Honda's bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centres and stockists located across rural and urban India. Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most sophisticated plant at Haridwar.

HERO HONDA’S MISSION:Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA’S MANDATE:Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of

35

customer satisfaction, and this goes a long way towards reinforcing its leadership status.

Hero Honda strives to touch and transform the lives of customers by giving them a mode of transport that is fuel-efficient, comfortable and environment friendly. One that would enhance their efficiency at work, enable them to share moments of joy with their families and add up to a better quality of life.

In a scenario where the customers have a few choices, Hero Honda’s vision is to offer the highest quality at a reasonable price, to meet the customer’s expectations, and to exceed them.

Behind the success of Hero Honda, is the saga of team-work. In the new millennium, it stands committed to innovation, to change, to achieving breakthroughs… to moving forward in the new century, while retaining the values that have been like a beacon in this journey thus far.

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $ 2.8 billion Hero Group. In recognition of his contribution to industry, Mr. Lall was conferred the Padma Bhushan Award by the Union Government.

Corporate Social Responsibility at Hero Honda:

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The Company believes it has managed to bring an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community.

36

The Foundation has adopted various villages located within vicinity of the

Hero Honda factory at Dharuhera for integrated rural development. This

includes:

Installation of deep bore hand pumps to provide clean drinking water.

Constructing metalled roads and connecting these villages to the

National Highway (NH -8).

Renovating primary school buildings and providing hygienic water

and toilet facilities.

Ensuring a proper drainage system at each of these villages to prevent

water-logging.

Promoting non-conventional sources of energy by providing a 50 per

cent subsidy on biogas plants.

Other key projects taken up by the Foundation include:

Raman Munjal Vidya Mandir:

The Raman Munjal Vidya Mandir is a modern Senior Secondary, CBSE

affiliated co-educational school with over 1200 students and 61 teachers.

Raman Munjal Memorial Hospital:

Multi-specialty hospital equipped with the latest diagnostic and surgical

technology. The Raman Munjal Memorial Hospital provides healthcare to

the rural population in and around Dharuhera, and also caters to accident and

trauma victims driving along the Delhi-Jaipur highway.

Raman Munjal Sports Complex:

37

The Raman Munjal Sports Complex has basketball courts, volleyball courts,

and hockey and football grounds are used by the local villagers.

Vocational Training Centre:

In order to help local rural people, especially women, Hero Honda has set up

a Vocational Training Centre. So far 26 batches comprising of nearly 625

women have been trained in tailoring, embroidery and knitting.

Adult Literacy Mission:

This Scheme was launched on 21st September, 1999, covering the nearby

villages of Malpura, Kapriwas and Sidhrawali.

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY:

At Hero Honda, the goal is not only to sell bikes, but also to help in making

the world a better place to live in. Besides its will to provide a high-quality

service to all of its customers, Hero Honda takes a stand as a socially

responsible enterprise respectful of its environment and respectful of the

important issues.

"We must do something for the community from whose land we

generate our wealth”

The above is a famous quote from the Worthy Chairman Mr.Brijmohan Lall

Munjal.

38

Hero Honda is committed to demonstrate excellence in environmental

performance on a continual basis, as an intrinsic element of its corporate

philosophy. To achieve this it is committed to:

Integrate environmental attributes and cleaner production in all our

business processes and practices with specific consideration to

substitution of hazardous chemicals, where viable and strengthen the

greening of supply chain.

Continue product innovations to improve environmental

compatibility.

Comply with all applicable environmental legislation and also

controlling our environmental discharges through the principles of

"alara" (as low as reasonably achievable).

Institutionalize resource conservation, in particular, in the areas of oil,

water, electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers /

vendors, while promoting their involvement in ensuring sound

environmental management.

Quality Policy:

Hero Honda is committed at all levels to achieve high quality in whatever it

does, particularly in its products and services which will meet and exceed

customer's growing aspirations through:

Innovation in products processes and services.

Continuous improvement in our total quality management systems.

39

Teamwork and responsibility.

Observations

Hero Honda Motors Limited is the world’s single largest two-wheeler motorcycle company. It is recognized today as one of the most successful joint ventures in the world.

40

Hero Honda has helped in the development of world class, value - for- money motorcycles and scooters for the Indian market. The company's meteoric growth in the two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its customers, with every passing year. Hero Honda strives for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. It is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products.

The overall objective of any initiative in an organization is to build a vibrant and learning organization so as to meet the challenges of quality and excellence, recruitment and retention of competent human resource and develop high commitment and a sense of belongingness to the company.

As one enters the premises one is beauty struck by the green grass, lush trees and blooming flowers. The factory premise is absolutely clean and free from effluvia. Proper arrangement is made for ventilation. The environment is eco-friendly and total pollution free. There are no fumes, smoke, hazardous gases etc. Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind.

The work atmosphere is healthy and comfortable. The teamwork and commitment are manifested in the highest level of customer satisfaction.

Due importance is given to hygiene and safety of workers. There is provision of healthy sanitary facilities, such as supply of potable water, disposal of wastes, good housekeeping and the like.Excellence in quality is the core value of Hero Honda's philosophy.

Some of the unique features at Hero Honda:

45000 square metres Green Roof in various buildings Full fledged training centre with simulation lines planned for all level

of work forces.

41

Approximately 40000 square metres area covered by roads for better connectivity.

Electronic Management System (EMS) planned for transfer of major parts from ancillaries to main plant for better parts management.

Youngest team (average age is 25 years). Therefore a vibrant culture.

H.R. Perspective

The strategic Human Resource Development (HRD) goal of Hero Honda is to create an atmosphere of technological and managerial excellence to become a globally competitive organization. With the changing

42

environment, rapid technological changes and greater customer demand, the overall objective of the Human Resource Development plan is to build a vibrant and learning organization, so as to meet the challenges of quality and excellence, recruitment and retention of competent human resources and develop high commitment and a sense of belongingness to the Company.

Recruitment and selection:

Recruitment is understood as the process of searching for and obtaining applicants for jobs, from among whom the right people can be selected.The general purpose of recruitment is to provide a pool of potentially qualified job candidates.

The work force at Hero Honda is divided into- Staff members Workers (team members)

Sources of recruitment for staff members: Various CV’s send by the consultancies are examined after which the

selected applicants are interviewed. The final interview is taken at the Head Office, Delhi.

Graduate engineering trainees (GET’s) On campus recruitment.

Training and Development:

Hero Honda invests heavily on training and development of its employees. Major trainings for staff are planned at the Head Office every year.Faculties are also judged. They are scored. Sometimes outside faculty is also invited.Gurukul, a full fledged and complete and separate building is provided and maintained at Hero Honda as a training Centre.Performance Appraisal:

Performance Appraisal helps to ascertain whether an employee has shown his or her best performance on a given job. If done properly, Performance Appraisal is a very effective tool to improve performance and productivity and development of employees.

43

At Hero Honda, usually a yearly Performance appraisal is done. With the help of PMS form (form for performance appraisal) training and development needs are identified.

Employee Communication:

Hero Honda has a lean organization structure with only 5 layers of communication. There is an effective communication in the organization which includes a lot of informal communication. Everyone is easily accessible.For team members a Help Desk is organized everyday between 2:30 to 3:30 pm where the workers can put up their grievances.

Safety Policy:

Hero Honda is committed to safety and health of its employees and other persons who may be affected by its operations. It believes that the safe work practices lead to better business performance, motivated workforce and higher productivity.

Hero Honda believes in creating a safety culture in the organization by: Integrating safety and health matters in all its activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work

places.

Promoting safety and health awareness amongst employees, suppliers

and contractors.

Continuous improvements in safety performance through precautions

besides participation and training of employees.

Some of the unique features of Hero Honda in respect to HR are:

Lean organization structure with only 5 layers of communication. Respect for each individual (Namaste culture). Morning prayers and exercises are performed. Morning meeting with team members.

44

Wishing team members’ on their birthdays. Suggestion box scheme. KAIZEN (Japanese Management) recently started. Family plant visit policy Monthly executive open house session. Informal staffs get together. Cross functional teams:

Formation of canteen facilitation team Formation of creative team – slogan competition, get together

of staff, Diwali function etc Formation of Josh team – volley ball tournament, cricket

tournament, football tournament etc Formation of Gyan Ganga team.

Regular medical examination conducted. Free lunch for team members whereas staff pays Rs. 10 for tea, lunch

and snacks Cycles and bikes provided on EMI discounts to employees.

There is no trade union at Haridwar plant of Hero Honda.

The Mantra at Hero Honda is “ Driving excellence through people”.

Suggestions

There are however certain areas in which the policies need to be reviewed.

These are as follows:

45

Recruitment method:

Recruitment sources should be expanded and the company should go for

more campus recruitment and written tests, interviews to check the ability of

the candidates so that competent people join the organization.

Grievance Settlement Cell:

Unsatisfied Grievances lead to dissatisfaction which has a negative impact

on the productivity and performance of the employee. Many a times the

employees feel reluctant to reach their superior in order to redress their

grievances. Thus there should be one such grievance settlement cell which

could cater to the needs of the employees.

Performance appraisal:

Beside using the Graphic Rating method, the company should also use other methods like 360 degree Appraisal technique for evaluating the performance as it provides a broader perspective about an employee’s performance, i.e. “Multi Rater” system would maximize the breadth of information and cancel our biases unique to particular source so that it can be used as a more appropriate way of appraising employees and which would also help to increase the credibility of the appraisal in the opinion of the employees.

A post appraisal interview should be arranged, so that the employees may be supplied with the feedback and the organization may know the difficulties which the employees are facing, so that their training needs may be discovered.

Counseling and guidance to employees:

46

Each and every employee must be informed as to where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for their development.

Both positive and negative feedback (i.e. an employee’s strong as well as weak points) should be told to them, as feedback has tremendous motivational value.

Conclusion

Both BHEL and Hero Honda are one of the largest engineering and manufacturing enterprises in India in their respective fields. They are committed to customer, quality and excellence, and while doing so, maintain

47

the highest standards of ethics and societal responsibilities. Both have excellent manpower, proven management, and world-class products.They both occupy a very significant position in the economy of our country.

The organizations understand the fact that the people are the centre of the whole system and most of the problems in organization are human related, as human beings are dynamic and complex. In order to create a performing organization and to sustain the performance, the human resources should be competent and efficient and the foundation is tapping down competent workforce and retaining them.

At BHEL as well as Hero Honda the workers are not seen as a liability, but as a key resource which needs to be carefully nurtured and constantly developed. It truly believes that a "Learning Organization" is essential for survival in the present era of Liberalization, Privatization and Globalization.

The companies’ HR policies pertaining to recruitment, selection, promotion and separation and its benefits are employee oriented. The organizations are well aware of the fact that any discontent or sense of injustice expressed or felt by an employee must be addressed to ensure healthy industrial relations and only a contented and motivated workforce can contribute positively to organizational goals.

This industrial visit to the plants of BHEL and Hero Honda at Haridwar has been an immense learning experience for all the students.

48