COMPARATIVE STUDY OF EMPLOYEE WELFARE SCHEME

BETWEEN HERO MOTORS

&

OTHER COMPANIES

Summer Internship Report Submitted in Partial Fulfillment of

B.tech+MBA Programme

2010-2015

Name of Guide- Dr. Sharadendu Pandey

Name of student- Deepak Dahima

(10/iee/016)

School of Management

Gautam Buddha University

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Gautam Buddha Nagar-201 308

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A REPORT

ON

COMPARATIVE STUDY

OF

EMPLOYEE WELFARE SCHEME

BETWEEN

HERO MOTORS

& OTHER COMPANIES

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Project Title - COMPARATIVE STUDY OF EMPLOYEE WELFARE SCHEME BETWEEN HERO MOTORS

& OTHER COMPANIES

Summer Internship/Project Report Submitted in Partial fulfillment of B.tech + MBA Programme

2014-2015By

……….Deepak Dahima…….……….10/iee/016…….

School of ManagementGautam Buddha University

Gautam Buddha Nagar- 201 310

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ACKNOWLEDGEMENT

This report has been made possible through the direct and indirect cooperation of various

persons for whom I wish to express my appreciation and gratitude.

First & foremost, my intellectual debt to my Faculty Guide

Dr. Sharadendu Pandey, who has continuously provided his valuable suggestions and

guided me to make this project report more useful.

DEEPAK DAHIMA

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Executive summary

The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of

the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or

benefits in the event of sickness, accident, disability, death or unemployment, or vacation

benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or

prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor

Management Relations Act, 1947 (other than pensions on retirement or death, and insurance

to provide such pensions).''

Welfare facilities include toilets, washing facilities, rest and changing facilities, personal

security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities,

personal growth facilities like library facility; training facility, Safety and Security measures,

adjustable working shift and timing, festival grants, transportation facility, housing facility

etc.

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TABLE OF CONTENTS

1. Acknowledgement 2. Executive summery3. Introduction

• Definition of Employee Welfare Schemes• Facilities cover under Employee Welfare Schemes• Need of Employee Welfare in organization

4. Company Profile• Overview of the company• History of Hero Motors• Evaluation of Hero Motors• Mission & Vision of Hero Motors• Values of Hero Motors• Corporate Objective of Hero Motors• Organization Structure of Hero Motors

5. Objective of the research 6. Research Methodolo Sample

• Instrument used• Data collection method• Project evaluation method

7. Employee Welfare at Hero Motors• Loan Policy• Canteen facility• Medical facility• Uniform provided• Transportation facility• Training and developmento• Telephone allowances• Awards• Gifts and events

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8. Data Analysis• Comparison between companies regarding training cost• Comparison between companies regarding loan facility• Comparison between companies regarding canteen • Comparison between companies regarding medicine cost• Comparison between companies regarding mobile allowance• Comparison between companies regarding Gift cost• Comparison between companies regarding Break time

9. Conclucion 10. Suggestions & Limitations A) Suggestions for Hero Motors B) Limitations of project report11. Questionnaire

Sample of questionnaire

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Project Title : Comparative Study of Employee Welfare Scheme

between Hero Motors Limited and Other Companies

Location : Hero Motors Ltd.

Company Profile:

Hero Motors is a part of the HERO GROUP, which is a multi billion dollar group with

diverse interests in manufacturing, engineering design, corporate services, and value added

engineering. Hero Motors is an integrated engineering services provider that has high quality

processes and a world-class technical team in place to deliver the best solutions in

engineering.

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Employee Welfare Scheme– Objective of the Project:

The purpose of this report is to evaluate the on going activities carried out under “Employee

Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to

competently support the organization to develop and administer effective employee welfare

and ensure continuous commitment from employee part for achieving the ultimate goal of the

organization.

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RESEARCH METHODOLOGY:

• Selecting the companies for the purpose of comparison.

• Gathering information regarding employee welfare of those companies.

• Using questionnaire for collecting information

• Analysing the information for fulfillment of report objective.

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EMPLOYEE WELFARE

DEFINITION:

The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of

the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or

benefits in the event of sickness, accident, disability, death or unemployment, or vacation

benefits, apprenticeship or other training programs, or day care centers, scholarship funds,

or prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor

Management Relations Act, 1947 (other than pensions on retirement or death, and insurance

to provide such pensions).''

Welfare facilities include toilets, washing facilities, rest and changing facilities, personal

security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities,

personal growth facilities like library facility; training facility, Safety and Security measures,

adjustable working shift and timing, festival grants, transportation facility, housing facility

etc.

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EMPLOYEE WELFARE SCHEMES

Personal Growth Facility

Working Condition

Recreational &

Refreshment Facility

Medical Facility

Canteen Facility

Transportation Facility

Safety & Security

Leave & Holiday Facility

Loan Facility

Other Facilities

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Different facilities cover under Employee Welfare Scheme:

PLANT TIMING OFFICE

ENVIRONMENT ENVIRONMENT

1. Shifts 1. Ventilation

2. Overtime 2 .Air-conditioned

3. Breaks 3 .Lighting

. 4. Seating arrangement

5 .General Cleanliness

6. Humidity

7 .Personal Laptop

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Working Condition

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TRAINING EDUCATIONAL PERFORMANCE

FACILITY FACILITY MEASURE

1. Internal Training 1. Library 1. Regular & effective

2. External Training 2.Debating Union appraise

3. Workshop & Seminars 3. Worker’s children’s 2. Monetary/ Non

schools monetary awards

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Personal Growth Facility

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FIRE ARMED SECURITY TECHNICAL MEASURES

PROTECTION GUARD PROTECTION FOR

ACCIDENT

PROTECTION

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Safety & Security Measures

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CLUBS EVENTS

1. Gymnasium 1. Picnic

2. Creches 2. Factory Foundation day

3. Recreational Club 3. Cultural evenings

4. Festivals celebration

SANITATION OTHER FACILITIES

1. Toilets 1. Rest room

2. Wash-basins 2. Tea & Snacks at breaks

3. Water & Waste disposal 3. Water cooler

4. Dustbins & Spittoons

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Recreational Facility

Refreshment Facility

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DISPENSARY INDIVIUAL TREATMENT

1. First-Aid 1. Hospital & Medicine cost

2. Regular Doctor for accidental case

3. Medicines for minor injuries & illness 2. Free medical check-up

UNIFORM CHILDREN FESTIVAL HOUSING TRAVELLING

SCHOLARSHIP GIFTS

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Medical Facility

Other facilities

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Need for Employee Welfare:

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Employee

Welfare

Schemes

Intellectual, physical, moral,

social & economical

Ensure

continual

commitment

of employee

Fulfi l l ing Governmental

Laws, Statutory Provisions

or required by customs of

the industry & country

Create &

improve

organizational

image

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COMPANY PROFILE

OVERVIEW OF THE COMPANY:

Company Name: HERO MOTORS LIMITED

• Company Address: 10th Km Stone, G.T. Road

Dadri, Distt- Gautam Budh Nagar, U.P.

• Industry: Automobile Spareparts

• Product range: Gear block, Cylinder block, Swing arm, Main stand, Side stand,

Chain case, etc.

• Mother concern: HERO GROUP OF COMPANIES:

• Hero Cycles - Founded in 1956, largest manufacturer of cycles in the world,

manufacturing over 6 million cycles per year.

• Hero Motors - Auto component outsourcing / scooter & Step through maker &

parent company of Hero Global Design.

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• Hero Global Design – Design/ Engineering/ Prototyping and Manufacturing

support services.

• Munjal Showa - Joint Venture with Showa, Japan largest

• manufacturer of shock absorbers in India

• Sunbeam Auto & Munjal Castings - Aluminum die casting Unit

• Hero Mindmine – BPO training services, BPO services; Call Center

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All India Offices:

I) Corporate Office: 601, International Trade Tower, Nehru Place, New

Delhi- 110019

II) Plant / Works: 10th Km Stone, G.T.Road,

Dadri, Distt- Gautam Budh Nagar, Ghaziabad (UP)

III) Foundry Project: Plot No. 192, Sector-4, Manesar, Gurgaon

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ACHIEVEMENTS:

• Green Pioneer Award - 2013

• Asias Third Best Employer Brand Award-2012

• NDTV Profit Car & Bike Awards 2010

• Company of the Year awarded by Economic Times Awards for Corporate

Excellence 2008-09

• The NDTV Profit Car India & Bike India Awards 2007 in the following category:

Overall "Bike of the Year" - CBZ X-treme

• Adjudged 7th Top Indian Company in 2006 by Wallstreet Journal Asia (Top Indian

Two Wheeler Company).

• Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by

CNBC in the 'Automobiles' category.

• Hero Group ranks amongst the top 10 Business Houses comprising 18 companies,

with an estimated turn over of US$ 1.8 billion during the fiscal year 2003-2004.

• HSBC-Merril Lynch has estimated Hero Group would be among the Top Value

Creator in 2001-2004.

• Hero Honda Motors was ranked 3rd amongst top Indian companies Review 2000-

Asia’s leading companies award (2003) by Far Eastern Economic Review.

• Hero Cycles Limited is a Guinness Book Record holder since 1986 as the wolrd’s

largest manufacturer of bycycles, with annual sales volume of 5.2 million bicycles in

FY 2004.

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• Hero Motors Limited was awarded as Highest Automobile Exporter in the year of

1995-1996 & 1996-1997.

• Hero Motors is Certified by ISO 9000 in the year of 2002.

HISTORY OF HERO MOTORS:

• Hero, the brand name synonymous with two-wheelers in India, is a multi-unit, multi-

product, geographically diversified, Group of Companies - the reflection of the steely

ambition and indomitable grit of the Munjal Family. Munjal Brothers, the founders of

the Hero Group, started out in 1960’s in business of bicycle components, and then

complete bicycles. Like every success story, Hero's saga contains an element of spirit

and enterprise; of achievement through grit and determination, coupled with vision

and meticulous planning.

• The company incorporated its business with the name of Majestic Auto Limited in

1978. It was established at Ludhiana by Mr. O.P.Munjal, chairman of the coimpany.

Later in 1988 another production plant, namely Majestic Auto Limited-II was

established by Mr. Pankaj Munal at Ghaziabad. In 2005 the company has demerged

and the second plant of Ghaziabad was renamed as Hero Motors Limited. The plant

area of Hero Motors spread over 30 acre land. HML has another small plant of 20

acre land at Manesar, near Gurgaon where they produce Ferrous casting products for

their customers.

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• Hero Motors (and subsequently Hero Global Design), set up in 1988 was originally

focused solely on the two-wheeler market. The company manufactured two stroke

mini motorcycles under the HERO PUCH brand, two stroke scooters under the

HERO WINNER brand and four-stroke step through motorcycles under the HERO

SMART and HERO STING brand.

• The Automobile and the Automobile Component Industry is one of the largest

growing in India. Hero Motors considers this to be a focus area. Since 2004, based on

a new strategic initiative, Hero Motors is nurturing the integrated engineering service

provider business. HML now supplies automotive spare parts like gear block to

Austria,Cylinder block to L.G. and Swing arm; Main stand; Side stand; Chain case

etc to Hero.

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EVALUATION OF HERO MOTORS:

1988 - Set up to manufacture mopeds in technical collaboration Styer Daimler Puch,

Austria

1993 - Became India’s largest exporter of two wheelers

1998 - Started development of four stroke engines in technical collaboration with Briggs &

Stratton, USA

- Formed HERO GLOBAL DESIGN

2001 - Launched HGD designed specialized moped – HERO POWER range

2002 - Launched India’s first four stroke moped – HERO SMART

2003 - Launched motorcycle –HERO- STING Entered into agreements with ROTAX for

engine & part development

2004 - Company focused as a “integrated engineering solution provider”

2005 - First supplies to ROTAX (Austria) and a World renowned Consumer Goods

Manuacturer - Ferrous Casting Plant being set up at Manesar

2011- New licensing arrangement signed between Hero and Honda (Hero Honda is renamed

as Hero)

2012- Migration of all products to Brand Hero and Strategic partnership with Erik Buell

Racing (EBR) of USA

2013- Neemrana Plant Foundation Stone laid

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- 50 Million cumulative 2 wheelers production

- Global Parts Centre Foundation Stone laid

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VISION

The story of Hero Honda began with a simple vision - the vision of a mobile and an

empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new

identity, reflects its commitment towards providing world class mobility solutions with

renewed focus on expanding company's footprint in the global arena

MISSION

Hero Motor’s mission is to become a global enterprise fulfilling its customers' needs and

aspirations for mobility, setting benchmarks in technology, styling and quality so that it

converts its customers into its brand advocates.

The company will provide an engaging environment for its people to perform to their true

potential. It will continue its focus on value creation and enduring relationships with its

partners

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OBJECTIVE OF THE RESEARCH

The purpose of this report is to evaluate the on going activities carried out under “Employee

Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to

competently support the organization to develop and administer effective employee welfare

and ensure continuous commitment from employee part for achieving the ultimate goal of the

organization

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RESEARCH METHODOLOGY

• SAMPLE

• ESCORTS TRACTOR LTD.

18/4 Mathura Road- Faridabad

• MOTHRSON AUTOMOTIVE TECHNOLOGIES &

ENGINEERIMG LTD.

D-14, Sector-59, Noida

• KENWOOD NIPPON

D-8, Sector-10, Noida

Instruments Used:

• Questionnaire

• Data collection method

• Interview method

• Details of data regarding cost from files of Finance Department.

• Personal observation of every welfare facility

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PROJECT EVALUATION METHOD:

• Sort out the feedback of different companies about what they give to their employees

and also sort out the information of benefits given by Hero Motors.

• Summary of Feedback for Future Planning from responses.

• Analysis of surveys through statistical tools, charts and evaluation of the study.

• Analysis of the information gathers from other companies and makes comparison of

total

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EMPLOYEE WELFARE AT HERO MOTORS

• Employees are always important in HERO MOTORS. HML wants employees who

can carry out their missions and fulfill their roles, with the aim of contributing to the

enhancement of the Company’s enterprise value, thereby winning society’s trust.

• In order to have a solid organization which attracts and inspires employees like these

to actively contribute to the Company with their best efforts, skills and abilities. Hero

Motors is endeavoring to establish effective systems for performance evaluation and

compensation, human resources development, and staff deployment.

• Furthermore, HML welfare and benefits system is designed to provide a comfortable

environment in which employees can easily adjust. While providing a workplace

where employees can focus on their work without distractions, the welfare and

benefits system also helps keep them in the best of health, and serves as a safety net,

giving employees a stronger feeling of security.

LOAN POLICY:

Hero Motors provides its employees two types of loans- Personal loan for any personal

purpose like marriage, higher education, housing etc and Vehicle loan. Total 10 loans

approved in a month in “first come first serve” basis. For lower level employee there is no

interest charged up to Rs. 5000/- and recovered in 10 equal monthly installments from the

employee’s salary, above this amount 14% interest are charged/ year and recovered in 20

EMI. For higher level employee up to Rs.15000/- is interest free above which 14% interest

are charged.

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As vehicle loan, 75% of the total cost paid by company as loan in 5% interest and recovered

in 60 EMI including interest. Car loan available for managers and above only.

Amount given as loan at different levels:

G.M and above - 2 Lac

A.G.M I - 1.5 Lac

A.G.M II - 1.25 Lac

Managers - 1 Lac

CANTEEN FACILITY:

Canteen is not only a place for taking lunch or dinner. It is a place where employees of one

department can meet with employees of other departments and can make some conversation

that helps to improve the informal communication flow within organization. In Hero Motors

a specious and well-equipped canteen is there facilitated with every modern facility like

comfortable seating arrangement, water cooler and washing facility.

Hero Motors provides canteen subsidies for employees; lunch coupon distributed at Rs.14/-

and Rs. 3/- is paid by company as subsidy and at breaks two times free teas are provided.

Employees working for overtime above 4 hours are entitled for free lunch. Summer Trainees

are provided free lunch during their training periods. Except these meal allowances for lunch

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and snacks are also given to employees if they are outside the plant for any official purpose

during lunchtime. Hero Motors provides free lunch to the visitors and guests (like corporate

guests) who come for any official purpose.

COST OF LAST FINANCIAL YEAR BEHIND CANTEEN

Total meal allowance (on duty) paid to employees: Rs. 1, 96,800/-

Canteen bill (including pantry cost) : Rs. 22, 43,200/-

Refreshment & tea, snacks expenses : Rs. 6, 50,000/-

MEDICAL FACILITY:

At Hero Motors there is a dispensary where doctor visits regularly, daily 1 hour a doctor

attends patients. All time first-aid facility and medicines for any minor illness are available.

For any major accident or in any serious case patients are admitted to near by hospitals or

nursing home. The cost of medicines, rent of bed and others are given by company. Hero

Motors has an ambulance for shifting purpose in case of serious illness.

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MEDICAL COST OF LAST THREE FINANCIAL YEARS:

Year

Cost for

medicines

Cost behind

employees

treatment

Doctor's

fees

April 2013-

March 2014 59,700 39,000 72,000 April 2012-

March 2013 12,000 97,400 60,000April 2011-

March 2012 23,300 4,50,000 60,000

Hero Motors gives its employees medi-claim facility, under which the policy premiums for

employee are given by Hero Motors and policy premium of employee’s family members are

paid by employee.

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MAXIMUM AMOUNT PAID AS PREMIUM AT DIFFERENT LEVELS:

MD and Family – 5 Lac

General Manager I/II – 3 Lac

Assistant General Manager I/II -2 Lac

Manager I/II, Assistant Manager I/II- 1.5 Lac

Executive I/II/III -1 Lac

Supervisor – Rs. 50000/-

Workmen/ Driver/ Peon- Rs.15000/-

Uniform Provided:

To create a sense of unity, proud feelings for organization and a sense of belongingness it is

very necessary for every organization to create and maintain an identity. For this purpose

Hero Motors provides uniforms for all its employees from workers to high-level managers..

Sweaters and jackets are given alternatively in every winter.

As per requirements of the job, personal protective equipments like masks, gloves, safety

shoes, dangri suits (for paint shop and machine shop workers), caps etc are also provided to

workers.

COST OF UNIFORMS OF LAST THREE FINANCIAL YEARS:

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Year

Cost of

pants,

shirts, and

stitching

cost

Cost of

woolen

clothes

Cost of

personal

protective

equipments

Cost of

leather

shoes and

socks

Cost of other

accessories

April

2013-

March

2014 3,72,500 2,51,000 1,47,500 1,83,000 1450April

2012-

March

2013 4,02,300 40,800 60,600 1,71,600 1840April

2011-

March

2012 3,86,000 61,500 36,000 60,000 1350

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Transportation facility:

Providing transportation facility is a very important aspect of any organization to its

employees. Because if the way to reach the organization is not very convenient and the

employee has to face lots of problems during every day journey it can affects the

organization in a very large way. It may results in late comings that hamper organizational

culture and also the productivity, again facing problems in daily up-down may irritate

employees and they may feel to switching the job means, increasing employee’s

dissatisfaction and lost of good employees which can be a severe problem for any

organization.

Hero Motors has three buses. The buses cover different routes for their workers coming from

different places.

COST BEHIND BUS SERVICE IN LAST FINANCIAL YEAR : RS.

9,65,000/-

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Training and development:

Training is way to make sure that employees have the right skills to effectively operate

various machines and manage various challenging situations. Employer gives training to

his/her employees so that employees can do the same job in some better way, which

ultimately increase the quantity of production and also the quality of work. It is basically

given by every organization for technical up-gradation of the job where as development

program is carried out with the view to explore and upgrade the qualities of employee’s inner

quality. Development program is very necessary for the personal growth of employees.

Hero Motors gives special emphasize on this aspect for its employees. In Hero Motors

‘Employee Training Programs’ are carried out by a group of people of Quality Department.

Hero Motors provides good scopes for employees to learn from Internal as well as External

Training. Employees can attend Seminars and Workshops arranged by other organization and

company bears entry fees for that. Hero Motors invites/hires external trainer from outsides

for ‘Worker’s Training’. Staff training programs also carried out as per training needs and

plans. The training programs are carried out in two basic ways- a) On the job training and b)

Off the job training. Off the job training is give using different methods like class room

training, group discussion etc. After training, trainees are evaluated and ranked by the trainer

to judge and compare their qualities and again a feed back form filled by trainees to welcome

their suggestions.

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Cost of last three financial years behind training and development

programs:

Years

Cost for

Training

Cost of

Seminars &

Workshops

Total Cost

March'2013-

April'20143,86,400 63,800 4,50,000

March2012-

April'20133,34,300 21,700 3,56,000

March'2011-

April'20125,89,000 37,600 6,26,600

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Telephone Allowance :

Today’s business world is very dynamic in nature and it demands proper and quick execution

of any work. Managers have to update their information base in every moment and have to

take decisions in challenging situation. For this it is very necessary to stay connected with

their colleagues and boss within and outside organization also. Now a days most of the

companies give mobile and telephone allowances to their managers.

Hero Motors grants mobile allowance from supervisor level to highest level of management

and paid for residential telephone bill only to top-level management.

Amount given as mobile allowance at different level:

Vice president and above : Rs. 3500/- per month

General manager I / II : Rs. 2200/- per month

Assistant General Manager, Manager : Rs. 1500/- per month

Assistant manager I / II : Rs. 1000/- per month

Executive I /II /III, Supervisor I/II/III : Rs 600/- per month

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Motivational Tool: Awards :

• Motivated employees can give two times extra than a dissatisfied employee.

Rewarding employees is that simple tool.

• Award is a way of appreciating one’s job from management side; it is a proof or

formal recognition. Award is a tool of motivating employees to do the job with new

zeal, enthusiasm, hard work and sincerity.

• Hero Motors rewarding employees for long service and retirement. The “Long

Service Awards” are given for 5years, 10years, 15 years and 20 years. For 10 years

service “Two-in-One Music System”, 15 years “CD Player” and 20 years “gold chain

of 8 gms” are given by the company. There is an award given once in a year as

“Regular Attendance Award”.

Gifts and Events :

Celebration of various festivals and events are necessary to welcome a wind of relieve so that

employees can start their job with a new passion. Again these types of celebrations give

employees a chance to meet each other in an informal atmosphere and also a chance to show

their other creative talents. Although in Hero Motors these types of celebrations are not done

in very frequently, still some special days are celebrated by Hero Motor’s employees. The

“Foundation day” is celebrated every year, on that day puja or hawan are done in the

morning. After that, eminent personalities give their speeches and provide snacks by

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company. Special lunch is provided in all special occasions. “Independence Day”, “Republic

Day” is also celebrated in Hero Motors.

Hero Motors gives its employees Diwali Bonus & gifts with sweets in every year.

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DATA ANALYSIS

Comparison between companies regarding training cost:

Companies Total CostHML 450000ESCORT 500000MOTHERSON 200000NIPPON 60000

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0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Training Cost

450000500000

200000

60000 HML

ESCORT

MOTHERSON

NIPPON

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Training Cost incurred behind per employee in a year in different

companies:

0100200300400500600700800900

1000

Cost/employee/year

1000

143

348

30

HML

ESCORT

MOTHERSON

NIPPON

Companies Cost/employee/yearHML 1000ESCORT 143MOTHERSON348NIPPON 30

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COMPARISON BETWEEN COMPANIES REGARDING LOAN

FACILITY:

Companies Maximum loan amount HML 20,0000ESCORT 50,000OMOTHERSON200000NIPPON 50,000

020000400006000080000

100000120000140000160000180000200000

200000

50,000

200000

50,000

HML

ESCORT

MOTHERSON

NIPPON

Maximum number of loan given by companies in a month:

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Hero Motors Limited : 10

Escort Tractor Limited: 15

Motherson Automotive Engineering Technologies: 25

Kenwood Nippon : 5

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Comparison between companies regarding canteen subsidy:

Companies Canteen SubsidiesHML 3ESCORT 7.25MOTHERSON12NIPPON 0

O

Canteen Subsidies3

7.25

12

0

0 5 10 15

HML

ESCORT

MOTHERSON

NIPPON

Comparison between companies regarding medicine cost:

Companies Medicine

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Cost/employee/yearHML 120ESCORT 60MOTHERSON104NIPPON 61

120

60

104

61

Medicine cost/employee/year

HML

ESCORT

MOTHERSON

NIPPON

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Comparison between companies regarding mobile allowance:

Companies

Total Mobile

allowanceHML 800000ESCORT 600000MOTHERSON1800000NIPPON 450000

800000

600000

1800000

450000

Total Mobile allowance

NIPPON

MOTHERSON

ESCORT

HML

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Comparison between companies regarding Gift cost:

Companies Gifts costHML 700ESCORT 1000MOTHERSON1200NIPPON 2000

0

500

1000

1500

2000

Gifts cost

Gift cost/employee/year

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Comparison between companies regarding Breaks :

Companies Breaks (in minutes)HML 60ESCORT 30MOTHERSON40NIPPON 50

Total Break Time

60

30

40

50

0

10

20

30

40

50

60

70

HML

ESCORT

MOTHERSO

N

NIPPO

N

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CONCLUSION

• In Nippon there is no canteen facility available within the plant. Escort

gives Rs.7.25 as canteen subsidy and Motherson gives Rs. 12 as canteen

subsidy where as Hero Motors gives only Rs.3 as canteen subsidy.

• Escort pays a large amount (Rs. 210000/-) behind medicine and first aid

cost but cost per employee per year is only Rs. 60/-, in Motherson total

amount expended is (Rs.240000/- for 4 units) Rs.60000/- but cost per

employee is much more high that is Rs.104/-. In Kenwood Nippon first

aid and medicine facility available to every department. The total cost

expended is not very high (Rs. 21000/-) but per employee cost is nominal

Rs.61/-. Hero Motors pays good attention in this regard, total amount

expended is Rs.120000/- where as per employee cost is Rs. 120/- which

is satisfactory.

• Motherson is a large company, it has 4 units situated in four different

locations. Its expend Rs.18 lac as mobile allowance but this amount they

expended in their 4 units and per unit expenditure is Rs.4.5 lac. In HML

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it is Rs. 8 lac, in Nippon it is Rs. 4.5 lac and Escort that is Rs. 6 lac as

mobile allowance.

• Nippon pays the highest amount for gifts that is Rs. 2000/-, Motherson

pays Rs. 1000/- for gift of per employee per year, Escort pays Rs.1200/-

and Hero Motors expends Rs. 700/- per employee per year which is not

satisfactory.

• In Hero Motors 2 pairs of uniform provided to per employee in every

year, it is same for Escort and Motherson, only in Nippon it is 4 pairs for

each employee. Hero Motors expends Rs 1000/- as per pair cost, Escort

expends Rs. 1200/- for per pair and Motherson expends Rs. 1250/- for

per pair cost. But Kenwood Nippon provides Uniform of Rs. 600 /- (per-

pair cost).

• In Hero Motors 2 tea breaks of 15 minutes and 30 minutes lunch break

(total 60 minutes breaks). In Escort only lunch break of 30 minutes are

given, in Motherson 2 tea breaks of 5minutes each and 30 minutes lunch

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break are given and in Nippon 30 minutes lunch break and 2 tea breaks of

10 minutes (total 50 minutes) are given.

• Hero Motors paid good attention to training and development activities, it

expends Rs.450000/- per year behind training program, seminars and

workshops and the cost paid for per employee per year is Rs. 1000/-, in

Escort the total cost for training is Rs. 500000/- and per employee cost is

Rs. 143/-, in Motherson Total cost is Rs. 200000/- per unit and per

employee cost is Rs. 348/- and Nippon pays minimum attention in this

regard, the per employee training cost is Rs. 30/-.

• No transportation facility available in Motherson and Kenwood Nippon.

Escort has 20 buses and travel in two shifts where as Hero Motors has

only 3 buses for transportation.

• In Nippon if employees stay till 8:30 p.m. convenience are given to them,

if they stay till 10 p.m. food and convenience both are given to them and

if employees come at work place in holidays then convenience, dinner

and lunch all are given by the company.

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SUGGESTIONS AND LIMITATION

Suggestions for Hero Motors:

• Staff Welfare activities are well organized in Hero Motors, but there are

some areas where improvements are necessary –

• Up gradation in Canteen facility: Although the quality of food is good

at hero motors but the service provided by the mess vendors is not up to

the mark. Hero Motors has to look after this problem, to solve this

problem coupon system should be applied in the canteen.

• Transportation facility: There is no transport facility given to staff in

general shift. It is important to provide transport facilities as it will save a

lot of time and energy of the employees which will be visible in

company’s turnover.

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• Recreation facility: There should be a refreshment facility and a

recreation center because working in long shifts can be tiring many times.

With the help of it workers can rejuvenate and work more efficiently.

• Library facility: There is no common library in Hero Motors. Hero

Motors should arrange a library within the plant so that employees who

are eager to gain more knowledge of various fields can fulfill that.

• Ambience and Seating arrangement in gate: Like any good

organization Hero Motors has a well furnished reception area but the

there is no proper siting facility for the visitors.

• Different seating arrangement for HR department: In Hero Motors

HR department and worker’s attendance room are same, small room

called “Time Office”. Shift time is maintained from that room. Hero

Motors can use this room only for maintain shift timing and taking

attendance of worker’s but a different cell should provide to other

employees of HR department where a separate cabin can be given to HR

head. Because it can create a lot of disturbance in official works.

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• Social Get-together and cultural events: Hero Motors should arrange

social get-together like picnic that is very necessary for Hero Motors

because due to lack of such events employees feel bore in their daily life.

Again it is suggested to HML that a cultural evening should be arranged

at the foundation day to give employees a chance to show their creative

talents. Especially these types of activities increase the mentality to do

team work.

Limitations of the project report:

• Comparison of this report is based on the information provided by the

HR personnel of other companies and it may be possible that all the

welfare activities may not be fully maintained as per their company’s

rules in actual practice.

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• The costs (numerical values) of different welfare activities and other

activities may not accurate, so approximate values are taken for

comparison.

• In other companies survey questionnaire is filled by representative of

management not by the employees. So it is not possible to make

comparison of employee satisfaction regarding welfare of Hero Motors

with other companies.

• All companies are not able to provide all the detailed information needed

by the questionnaire. So, all the different parameters cannot be compared

in the report as per the plan.

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QUESTIONNAIRE

PROFILE OF RESPONDENT

Name of Company:----------------------------------------------------------------------

Address of the Company:---------------------------------------------------------------

Name of Employee:----------------------------------------------------------------------

Age; --------------------------------

Gender---------------------------

Education----------------------------------------------------------------------------------

Designation-------------------------------------------------------------------------------

EMPLOYEE WELFARE SCHEMES1. Working Conditiona) Plant Environment: I) Ventilation

ii) Lighting

b) Office Environment: I) Air condition Facility:

ii) Seating Arrangement:

c) Timings: I) Shifts:

ii) Overtime:

iii) Breaks:

d) Refreshment Facility:I) Latrine: Total No. : Hygiene Cond.

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ii) Water: Total No.of water cooler: Hygiene Cond.

iii) Tea/ Coffee No./Day:e) Office Accessories: I) Personal

Computer/Laptop:

No. Per Deptt.

Total cost/ deptt:

ii) Telephone/

Intercom Facility

No. Per Deptt.

2. Policiesa) Loan policy: I) No. of loan

sanctioned/ month:

ii) Max amount of

loan given:

iii) Interest rate:

iv) Loan recovery

policy:

b) Mediclaim policy: I) Total amount paid by company/yr.:

ii) Rules regarding policy:

iii) Max. Amount given: 3. Canteen Facilitya) Price- Lunch: I) Coupon Rate:

ii) Subsidies: b) Price- Snacks: I) Coupon Rate:

ii) Subsidies:

4. Medical Facilitya) Regular Doctor/

Dispensary:

I) Visit/Week: ii) Cost/year:

b) First Aid &

Medicine:

i) Avg. Cost/year.: ii) Availability:

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c) Total cost/ year: 5. Scope for Personal Growtha) Training Facility: i) Ways of training:

a) Internal b) External

c) On-the-job d) Off-the-job

ii) No. of Training/month:

iii) Work related: iv) Cost/Year: v) Mandays/employee/year:

b) Seminar &

Workshop:

i) Avg. No. of Seminar & Workshop attended/Year.:

ii) Avg. cost for attending Seminars & Workshop/Year.:

c) Performance

Appraisal:

I) Appraised

Effectively: ii) Half yearly/

Yearly: iii) Regular Scope

for Promotion: d) Awards &

Certificates:

I) Monetary

Award: ii) Long Service &

Retirement

Award: iii) Regular

Attendance

Award:

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iv) Any Other:

e) Library Facility:

6.Transportation Facilitya) Bus Service:

I) No. of Buses: ii) No. of trips/

shifts:

b) Allowance:

7. Telephone/ Mobile Facilitya) Mobile allowance: FOR

DIFFERENT

LEVELS:

Rs. /- per monthRs. /- per monthRs. /- per month

b) Telephone

Allowance:

FOR

DIFFERENT

LEVELS:

Rs. /- per monthRs. /- per monthRs. /- per month

8. Organizational Climatea) Communication flow:

b) Way of supervision:

9. Safety Measurea) Fire Protection:

b) Chemical/Hazardous

Protection:

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Oc) Measure for

Accident Protection

10. Security Measuresa) Manpower Security: I) Total No of security man:b) Technical Protection:

11. Other Facilities

a) Children Scholarship: I) No.of

Scolarship/

Year: ii) Total amount

given/ Year:

b) Leave & Holiday

facility:

c) Providing Dress: i) No. of Shirts,

Pants shoes,

sweaters:

ii) Yearly cost/

uniform:

iii) Cost of

Personal

Protective

Equipments:

iv) Total cost/

year:

d) Gifts:

e)

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f)

g)

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REFERENCES

WEBSITES:

• http://www.heromotors.com -12sep2014

• http://www.heromotocorp.com -14sep2014

books

• Kothari, C.R. (1997). Research methodology. New age

international publication.

• Sims, R.K. (2006). Human resource management. Information

age publishing Inc.

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