CHAPTER – 1

INTRODUCTION-COMPANY

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SONADIH AT A GLANCE

LARARGE INDIA PVT LTD

SONADIH CEMENT PLANT

(AN ISO-9001, ISO-14001 & OHSAS 18001 UNIT)

P.O. RASEDA, VIA-BALODA BAZAR

DISTT-RAIPUR, CHHATTISGARH (INDIA)

PIN-493332

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COMPANY’S PROFILE

Sonadih Cement Plant is the first unit of LAFARGE in India. The plant is equipped with state of

art technology.

Sonadih Cement Plant is located in Raipur district of Chhattisgarh. The plant produces clinker as

well as PPC Cement. Majority of clinker produced is supplied to Jojobera Cement Plant located

near Jamshedpur, Jharkhand for production of Portland Slag Cement (PSC).

Both Sonadih Cement Plant & Jojobera cement Plant were taken over by LAFARGE (Largest

cement producer in the world) on 1st Nov 1999.

The Lafarge group is a world leader in construction material and holds leading positioning in

each of its four-core business area viz. Cement, Aggregates and Concretes, Gypsum and

Roofing. It operates in 75 countries and globally employs over 80000 people and generated

annual sale of Rs 9372 million in the year 2005.It expertise and best practices in efficient

industrial production and conservation of natural resources have been implemented around the

world.

The Lafarge group was set up in 1883, in southern France, between the cities of Lyon and

Marseille. In 1864, the group’s internationals operation received a fillip with the receipt of an

order for supplying 110000 tones of Cement for the construction of Suez Canal. Between 1900

and 1914 the group expanded in France North & South America. And then in all continents.

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History of Lafarge

The Lafarge story began in 1833…

1833-1914 Solid Foundation

In 1833 Leon Pavin, launched an industrial lime production operation, having taken over a

business acquired by his family in 1749 with the purchase of the Lafarge domain in south eastern

France, an area known for generation for the quality of its limestone deposits.

The company signed its first major international contract in 1864, delivering 110000 tonnes of

lime for the construction of the Suez Canal. Lafarge opened its first central research laboratory in

1887, the Le Teil Laboratory, with which highly reputed scientists collaborated. In 1908, the

central laboratory filed a patent for the Cement Founder calcium aluminates, obtained by fusing

a mixture of bauxite and limestone

1914-1955 Growth on all fronts

International development began with the opening up of North American markets. Lafarge,

which had operated in Algeria over since 1866, now became the leading Portland cement

producer in Algeria, and set up operation in Morocco and Tunisia. Lafarge Continued to acquire

companies in mainland France. With a quarter of the domestic market, the company became

established as France’s number one cement producer. In 1926, Lafarge opened its first alumnus

cement plant in the United Kingdom .It diversified into Gypsum in 1931 and developed Super

blank, new cement, in1932. After 1945, Lafarge gained a new lease of life with the arrival of

Alfred Francois.

1955-1981 Mergers, acquisitions, Developments

In 1956, Lafarge constructed its North American cement plant, creating Lafarge cement of North

America with startup of the Richmond Plant in Canada. In 1959 Lafarge began operation in

Brazil. By the end of the 1960 Lafarge Canada has become the third largest cement producer in

the country, with the annual production capacity of 90,000 tonnes. In 1980, a merger agreement

was signed between Lafarge and coppee as the number one cement producer in North America.

The size of the group rose from 12000 to 17000 employees.

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1982-1990 The conquest of Europe

During the 1980s, with the construction of a single market representing more than 300 million

inhabitants the group chose to expand its business in Europe. Lafarge turned to Germany, raising

its stake in Portland Cementwerk at Wossingen to 83%. Through the purchase of Swiss

company, cementia in 1989, the group acquired interests in Ashland (Spain), Aslan(Turkey) and

Perlmooser (Austria). The followed investment in Eastern Europe, East Germany, the Czech

Republic (1991), then Poland ,Romania, Russia and Ukraine. The agreement with the East

Germany cement producer, Karsdorf, came even before German reunification had been mooted.

1992-2003 Lafarge becomes world leader in building materials

1994 saw Lafarge take a foothold in China. Today, all four of the groups division operate there

have been development throughout Asia (1998:Indonesia and the Philippines; 1999 India and

South Korea). The group’s expansion in Poland began in 1995 with the acquisition of a 75%

stake in Kujaway. Within six years, 4 entities representing all four divisions were active in the

country.

Lafarge acquired Redland in 1997, positioning itself more strongly in Aggregates and Concrete

and gaining entry into Roofing market.

Thanks to acquisition of Warren in Canada in 2000, Lafarge became one of the leading

Aggregates producers in North America. Lafarge focused on its main four divisions, and

divested its specialty product business, which became Materis.

Lafarge was the first industrial group to conclude a partnership agreement with WWF (World

Wildlife Fund for nature).

In 2001, following the acquisition of Blue Circle, Lafarge became the world’s leading cement

producer. Numerous acquisition and joint venture in all four divisions, and one every continent,

Particularly Asia have continued to consolidate its world leadership position. In July 2001,

Lafarge was introduced onto the New York Stock Exchange (NYSE).

Lafarge in India

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Lafarge India Pvt Ltd commenced operation in India by acquisition of TISCO’s cement plants in

1999, and later in January 2001 further acquired cement business of Raymond Limited. Now the

Lafarge India CEO, Uday Khanna .The eastern India operation center is in Kolkata while head

office in Mumbai.

Plants in India

A brief description of Lafarge India’s existence facilities is as below ;

Location Facilities Rated capacities

Sonadih Clinkerisation unit 1.4 MTPA of Clinker

Cement grinding Unit 0.4 MTPA of OPC 43 Grade

Jojobera Cement Grinding Unit 3.0 MTPA of PSC & PPC

Aresmeta Clinkerisation unit 1.6 MTPA of clinker

Cement grinding Unit 1.6 MTPA of PPC

Group Division

Different division in the group are as under –

Cement-

Lafarge manufactures and supplies wide variety of Cement and Hydraulic binder to all those

involved in the construction industries viz. building and public works contractor, builders, whole

sellers, prefabricated concrete manufacturers, ready mix concrete producers, specifies etc.In

addition to qualities of stability, strength and durability.

Aggregates and Concretes-

Lafarge also manufactures a wide variety of concrete, including standard Concretes and specially

concretes, which offer specific advantage in terms of ease of application, economic utilization,

strength or appearance. Aggregates are used alone or in conjunction with a binder in building,

civil engineering and public works. Lafarge is the second largest manufacturer of Aggregates and

concrete in the world

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Product –PROFILE

Lafarge India offers four exclusive products-

1. Portland Slag Cement (PSC) available in the markets of West Bengal, Bihar,

Orissa and the Northeastern states.

2. Portland Pozzolana Cement (PPC) available in the markets of West Bengal,

Bihar, Orissa and the Northeastern states.

3. Ordinary Portland Cement (OPC), 43 grade available in the market of Madhya

Pradesh, Chhattisgarh, and Vidharba (Maharashtra)

4. Clinker, available in the Indian states of West Bengal, Bihar and Andhra Pradesh

is exported to Bangladesh and Nepal.

Objectives of Lafarge India Pvt. Ltd.

To bring the profitability of our recently acquired operations to the highest level by using –

Our global know-how

Our benchmarking capability

Our continuing efforts in reducing the cost base and improving efficiencies.

Our experienced management Team

Introduce new ready mix products with higher value added

To continue exploring acquisition in Cement and Aggregates.

To strengthen further our concrete tiles leadership and increase our presence in clay tile.

Responsibilities

To anticipate and meet customer needs –

Create a perceived difference and be the supplier of choice.

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Serve our customer better by knowing them better.

Contribute to the development and progress of the construction industries

To enhance the value of shareholders investment and gain their trust.

To provide shareholders with the competitive return on their investment.

To provide them with the clear information.

To respect the interest of companies partner and minority shareholders

To make the employees the heart of the company-

To base legitimate authority on the ability to contribute to the company s success.

To develop mutual respect and trust.

To provide employees with equitable compensation and fulfilling professional

environment.

To gain from increasing diversity-

To make company’s cultural diversity an asset.

To delegate responsibility with accountability and control

To develop an effective cross operational management approach

To make the use of synergies and share know-how.

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CHAPTER-2

INTRODUCTION

EMPLOYEE WELFARE

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EMPLOYEE WELFARE

The employee welfare schemes can be classified into two categories viz. statutory and non-

statutory welfare schemes. The statutory schemes are those schemes that are compulsory to

provide by an organization as compliance to the laws governing employee health and safety.

These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act

(safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from

organization to organization and from industry to industry.

STATUTARY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should be

provided.

2. Facilities for sitting: In every organization, especially factories, suitable seating

arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and should be readily

assessable so that in case of any minor accident initial medication can be provided to the

needed employee.

4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in

the office and factory premises and are also to be maintained in a neat and clean

condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to

provide hygienic and nutritious food to the employees.

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6. Spittoons: In every work place, such as ware houses, store places, in the dock area and

office premises spittoons are to be provided in convenient places and same are to be

maintained in a hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so that they can

work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, wash basins with tap and

tap on the stand pipe are provided in the port area in the vicinity of the work places.

9. Changing rooms: Adequate changing rooms are to be provided for workers to change

their cloth in the factory area and office premises. Adequate lockers are also provided to

the workers to keep their clothes and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions

of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following schemes:

1. Personal Health Care (Regular medical check-ups): Some of the companies provide

the facility for extensive health check-up

2. Flexi-time: The main objective of the flextime policy is to provide opportunity to

employees to work with flexible working schedules. Flexible work schedules are initiated

by employees and approved by management to meet business commitments while

supporting employee personal life needs

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3. Employee Assistance Programs: Various assistant programs are arranged like external

counseling service so that employees or members of their immediate family can get

counseling on various matters.

4. Harassment Policy: To protect an employee from harassments of any kind, guidelines

are provided for proper action and also for protecting the aggrieved employee.

5. Maternity & Adoption Leave – Employees can avail maternity or adoption leaves.

Paternity leave policies have also been introduced by various companies.

6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance

coverage of employees for expenses related to hospitalization due to illness, disease or

injury or pregnancy.

7. Employee Referral Scheme: In several companies employee referral scheme is

implemented to encourage employees to refer friends and relatives for employment in the

organization.

Welfare includes anything that is done for the comfort and improvement of employees and is

provided over and above the wages. Welfare helps in keeping the morale and motivation of the

employees high so as to retain the employees for longer duration. The welfare measures need not

be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of

working conditions, creation of industrial harmony through infrastructure for health, industrial

relation and insurance against disease, accident and unemployment for the workers and their

families. Employee welfare entails all those activities of employer which are directed towards

providing the employees with certain facilities and services in addition to wages or salaries.

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OBJECTIVES

Employee welfare has the following objectives:

1. To provide better life and health to the workers

2. To make the workers happy and satisfied

3. To relieve workers from industrial fatigue and to improve intellectual, cultural and

material conditions of living of the workers.

The basic features of Employee welfare measures are as follows:

1. Employee welfare includes various facilities, services and amenities provided to

employee for improving their health, efficiency, economic betterment and social status.

2. Welfare measures are in addition to regular wages and other economic benefits available

to employees due to legal provisions and collective bargaining

3. Employee welfare schemes are flexible and ever-changing. New welfare measures are

added to the existing ones from time to time.

4. Welfare measures may be introduced by the employers, government, employees or by

any social or charitable agency.

5. The purpose of employee welfare is to bring about the development of the whole

personality of the workers to make a better workforce.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and

satisfied labor force for the organization. The purpose of providing such facilities is to make their

work life better and also to raise their standard of living. The important benefits of welfare

measures can be summarized as follows:

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They provide better physical and mental health to workers and thus promote a healthy

work environment

Facilities like housing schemes, medical benefits, and education and recreation facilities

for workers’ families help in raising their standards of living. This makes workers to pay

more attention towards work and thus increases their productivity.

Employers get stable labor force by providing welfare facilities. Employees take active

interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

The social evils prevalent among the labors such as substance abuse, etc are reduced to a

greater extent by the welfare policies.

EMPLOYEE WELFARE AT LAFARGE

SCHOOL

School is also one of the welfare measures of Lafarge India Pvt.Ltd.The name of school is

D.A.V. public school. The school runs classes from nursery to class 12th .The school is run by

D.A.V. College Trust and Management Society. The D.A.V. College trust and Management

Society is already more than a hundred years old. This is now the biggest non-government

educational organization in India. It covers broadly the entire spectrum of education activity in

country. The society is running more than 600 educational institutions which includes Arts &

Science Colleges, College of Education, Commerce and Law, Technical Institutions and

Polytechnics,Ayurvedic College,Dental College,D.A.V. Pharmacy, Vedic Research institutes and

High Schools apart from D.A.V. Public Schools scattered all over the country and even in

foreign lands.

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Aims and Objectives of D.A.V. School

1. To develop competence for effective participation in day-to-day situations

2. To develop basic mental abilities & skills.

3. To help in physical growth and proficiency in games.

4. To help learn how to establish good human relationships, imbibe virtues of moral courage

and social discipline.

5. To acquire economic understanding and efficiency in the management of expenditure.

6. To help in harmonious growth so that the child go through the ups and downs of life in an

optimistic and determined manner.

Facilities Provided At School

1. The school is equipped with Library facility where students can get important books to

read.

2. The school arranges for annual sports and cultural programmes for students.

3. The school arranges for Parent-Teacher Meeting on a day fixed by the school every

month.

4. The school lays great emphasis on physical fitness of students and tries to provide

facilities for games, sports, and recreational activities for all.

5. The programme includes rhythmic exercises,athletics,gymnastics,drills and sports and

games like hockey,football,cricket,volleyball,basket-ball,badminton,lawn-tennis,kho-kho

and table-tennis.

6. Inter-class and Inter-house competition are conducted as scheduled.

7. The school arranges frequent visits to places of interest.

8. The school helps each child to develop his/her capacity and inborn talent to the fullest

extent for which co-curricular activities are an indispensable part of school life.

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9. The school helps each child to develop his/her work experience. Work experience is part

of educational programme.

10. It helps children get closer to the community and makes them conscious of their social

commitment and develops in them respect for manual work and a desire to contribute

their best for the common good.

HOSPITAL (SANJEEVANI)

Company’s profit or target achievement depends upon the production of the company.

While this production totally lies in the hands of the workers. It depends on the workers

health conditions, which allows him to contribute totally to the production. This is a

necessary facility which is to be provided by every company and therefore every company

has its own hospital and at LAFARGE it’s better known as SANJEEVANI.

The main objective of SANJEEVANI is to provide primary treatment to the people. At

hospital regular check up of employees, their family and their dependents takes place. There

are currently a total of nine people working. Their are two doctors, one pathologist, one

pharmacist, one lab technician and four nurses. There are different wards for gents and

ladies. There is a separate room for VIP category officers with good facilities

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The SANJEEVANI at LAFARGE provides only preliminary treatment while cases like

cancer; diabetes is being referred to Bilaspur, Raipur and some other places.

The diseases which frequently occur to people of here and are also curable here only are as

follows

1. Viral fever

2. Malaria

3. Acid peptic diseases

4. Urinary tract infection

5. Upper respiratory tract inspection

6. Snake/any insect bite

The night shifts are managed either by nurses or by pharmacist alternatively. Hospital

comprises of two ambulances, which are available round the clock for 24 hrs.

CLUBS OF EMPLOYEES AND LADIES.

EMPLOYEES CLUB

1. Employees club comprises of officers and non-officers category. The officers club has 267

members and non-officers have 200 members enrolled

2. They organize twice in a month officers gathering with family and their friends.

3. The functions organized by club are the following:

a) Card games

b) Picture screening

c) Fun games

d) Quiz competition etc.

4. Also they organize recreation and sports facilities like

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a) Table-tennis

b) Badminton

c) Card

d) Carom

e) Family cricket

5. Twice in a month mouth watering dinner is organized by club authority.

6. Club is a registered body having its own employees

7. They also celebrate big events like New Year, holi etc in club.

LADIES CLUB

Total enrolled ladies club members are more than 70 and are fully active in area of organizing

competitions, staffing cultural events and contributing to the Corporate Social Responsibility

through knitting and sewing and the alike.

1. Monthly games and card games

2. Flower decoration.

3. Haryali and Teej festivals and also Anand mela is organized.

CANTEEN

Some organizations have statutory obligation to provide such facilities as Section 46 of the

Factories Act, 1948, imposes a statutory obligation to employers to provide canteens in factories

employing more than 250 workers. Others have provided such facilities voluntarily. Foodstuffs

are supplied at subsidized prices in these canteens. Some companies provide lunchrooms when

canteen facilities are not available.

In Lafarge Industrial canteen has been provided inside the plant for the benefits of the

employees. The canteen is run by the contractor. There are 19 members in all. The subsidy given

to the employees are as follows:

Items Coupon Rate

Meal 2.67

Tea 0.43

Snacks 2.54

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Privilege Leave (PL)

I. SCOPE

All confirmed officers.

II. PURPOSE

To establish guidelines on availing Privilege Leave by the officers, allowing them the

necessary time-off from the work.

III. POLICY

a) A confirmed officer is entitled to 25 days of Privilege Leave in a Calendar year.

b) Privilege Leave will accrue in advance on the 1st day of January of each year.

c) An officer joining after 1st January in a particular calendar year, shall be entitled to

Privilege leave accrued on pro-rata basis w.e.f his respective DOJ, but the same can be

availed only after his service gets confirmed in the Company.

d) Privilege leave (PL) can be accumulated up to a maximum of 90 days. Any accrual in

excess of 90 days shall lapse automatically.

e) An officer must obtain prior sanction from his superior at least two weeks in advance,

unless there is an emergency, before proceeding on leave.

f) All officers must avail a minimum 10 (ten) days Privilege Leave in a year, so as to take a

break from the job and come back rejuvenated.

g) Privilege Leave may be availed for maximum of 3 (three) occasions in a year and it can

neither be clubbed with Casual Leave (CL) nor with Sick Leave (SL) at any point of time.

In case of medical exigency, clubbing with Sick Leave (SL) may be considered at the sole

discretion of Sr. VP – HR, however, in such cases, the leave application has to be

supported by a Medical Certificate.

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V. PROCEDURE

a) Officers would be required to submit their provisional leave plan to their respective

departmental heads in the beginning of each year, for advance information. This would

allow the HODs / HOFs to schedule the leave in their respective department to ensure

minimal interruption of work. Failure to give a provisional leave plan may lead to non-

sanction of leave due to exigencies of work.

b) Officers planning to avail leave are required to fill the prescribed Leave Application Form

and submit the same to their respective departmental heads for approval at least 2 (two)

weeks before proceeding on leave.

c) The approved leave application form must be submitted to the Local HR before the

concerned officer proceeds on leave.

VI. ABSENCE / OVERSTAY

If an officer remains absent for more than 8 consecutive days without due

sanction/approval of leave or beyond the period of leave originally granted or subsequently

extended, it shall be deemed that, the officer is no longer interested in continuing with the

services of the company and accordingly, appropriate action shall be initiated.

Casual Leave (CL)

I. SCOPE

All confirmed officers.

II. PURPOSE

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To enable officers to take necessary time-off to meet unforeseen personal exigencies.

III. POLICY

a) All Officers are entitled to 5 days of Casual leave (CL) in each calendar year.

b) Officers joining after the 1st January of a calendar year shall be entitled to Casual Leave on

pro-rata basis for the year.

c) CL can be taken for a minimum of half-a-day and a maximum of consecutive 3 days at a

time.

d) CL cannot be clubbed with Privilege leave (PL) or Sick leave (SL).

e) CL can be prefixed or suffixed with weekly offs or public/flexible holidays, however, both

prefix & suffix of CL with weekly offs and public/flexible holidays are not admissible at

any point of time.

f) Probationers may be granted CL to for genuine reasons, by the immediate superior in

consultation with the local HR.

g) CL cannot be carried forward & shall lapse, if not availed during the year.

h) CL is not encashable at any point of time.

i) In the event of separation / termination of employment during a calendar year, excess leave

availed, if any, by the officer shall be adjusted against his full & final settlement.

IV. PROCEDURE

a. Officers availed CL due to an emergency must submit the leave application form duly

approved by his HOD, to the local HR department immediately upon returning to work.

b. Officers availing CL are required to inform the immediate superior or the local HR within

24 hours of availing such leave.

V. ABSENCE / OVERSTAY

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Officers remaining absent for more than 8 consecutive days without due sanction/approval

of leave or beyond the period of leave originally granted or subsequently extended, it shall

be deemed that, the officers are no longer interested in continuing with the services of the

company and accordingly, appropriate action shall be initiated.

Sick Leave (SL)

I. SCOPE

All officers, including those undergoing probation.

II. PURPOSE

To ensure that the officers have sufficient time to take rest and recuperate from an illness.

III. POLICY

a) All officers including those undergoing probation are entitled to 15 days of Sick Leave

(SL) in a calendar year.

b) Officers joining after 1st January of a calendar year shall be entitled to sick leave on pro-

rata basis for the year.

c) SL can be taken for a minimum of half-a-day at a time.

d) SL cannot be carried forward & shall lapse, if not availed during the year.

e) SL is not encashable at any point of time.

f) For any chronic disease requiring prolonged medical treatment, additional sick leave may

be granted to the concerned officer at the sole discretion of the Management, considering

the criticality of the disease and his past leave record.

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IV. PROCEDURE

a. Officers absent from work on medical grounds must inform their immediate superior or the

local HR department within 24 hours of such absence and the leave application form duly

filled up & approved by the respective HODs must be submitted to the local HR

department immediately after resuming duties.

b. Officers availing sick leave for more than 2 consecutive days at a time need to submit a

medical certificate issued by a medical practitioner registered under Indian Medical

Association (IMA).

c. If the period of leave exceeds 5 days, a fitness certificate, signed & issued by a medical

practitioner registered under Indian Medical Association (IMA) has to be submitted too.

V. ABSENCE / OVERSTAY

Officers remaining absent for more than 8 consecutive days without due sanction/approval

of leave or beyond the period of leave originally granted or subsequently extended, it shall

be deemed that, the officers are no longer interested in continuing with the services of the

company and accordingly, appropriate action shall be initiated.

Maternity Leave (ML)

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I. SCOPE

All female officers, who have worked for a period of not less than 80 days in the 12

months immediately preceding the date of the expected delivery.

II. PURPOSE

To ensure the well being of female officers during the period before & after the childbirth.

III. POLICYEligibility & Entitlement:

a) Female officers, who have worked for a period of not less than 80 days in the 12 months

immediately preceding the expected date of delivery, is entitled to maternity benefit leave

with pay, for the first two children only, as mentioned below –

In case of Normal Delivery, 6 weeks upto, including the day of delivery and 6 weeks

immediately following the delivery.

In case of Miscarriage, 6 weeks immediately following the date of such miscarriage.

In case of Illness of newly born child, certified by a registered medical practitioner and

arising out of pregnancy, delivery, premature birth or miscarriage, Maximum period of 1

month, in addition to the period of leave allowed under clause i or ii, provided that the

officer shall forfeit her claim to maternity leave with pay, if she works in any establishment

during such period of leave.

b) The officers shall also be entitled to other benefits as applicable under the Maternity

Benefits Act, 1961.

c) The grant of maternity leave has to be preceded by a thorough medical examination and

certification by a registered medical practitioner, indicating the tentative date of delivery.

d) In case, an officer, on the advice of a medical practitioner, proceeds on a maternity leave of

6 weeks prior to confinement, and the actual delivery does not take place within the

stipulated pre-natal period, the officer concerned would be entitled to leave up to the actual

date of confinement and the period comprising the entire pre-natal period & the post-natal

6 weeks would be treated as the period of maternity leave.

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However, if the actual delivery takes place any day before the completion of the stipulated

pre-natal period of 6 weeks, the officer would be entitled to maternity leave upto the actual

date of confinement, in addition to the post-natal maternity leave of 6 weeks.

e) Any leave in excess of the stipulated period (as mentioned above) may be granted to the

officer as leave without pay (LWP) at the sole discretion of the Management.

f) An officer on maternity leave would be paid salary, for the period of such leave, calculated

on the basis of the existing rate of basic pay & house rent allowance (HRA), as applicable,

only. No other allowances/benefits would be considered while calculating such salary.

g) In case, an officer entitled to maternity benefit dies during the period of such entitlement,

she would be entitled to receive the benefit, calculated for the period upto the date of her

death.

h) In case, an officer, having delivered a child, dies during the delivery or during the period of

6 weeks immediately following the date of the delivery, leaving behind in either case the

child, the officer concerned shall be entitled to receive maternity benefit for the entire

period of 6 weeks immediately following the date of her delivery, but in case, the newly

born child too dies along with during this period, the officer concerned will be entitled to

receive maternity benefit only for the days up to & including the day of the death of the

child.

i) No officer shall, during the period of 1 month immediately preceding the period of 6 weeks

before the date of her expected delivery, on her request, be required to do any job, which is

arduous in nature, involving long hours of standing, &/or may adversely affect the

pregnancy &/or the normal development of the foetus, &/or may cause a miscarriage or

otherwise adversely affect her health.

j) Officers, resuming to duty after having delivered a child, would be entitled to have 2

breaks, of 15 minutes each, during the course of her daily work, to take care of the newly

born child, until the child attains the age of 15 months.

k) Every woman officer delivered of a child who returns to duty after such delivery shall, in

addition to the interval for rest allowed to her, be allowed two breaks of 10 minutes each in

the course of her daily work for nursing the child until the child attains the age of fifteen

months.

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l) Male officers may avail a maximum leave of 7 days (from the date of delivery of the child)

to facilitate necessary post-natal care of their spouse.

IV. PROCEDURE

a) An officer intending to go on maternity leave is required to fill up the leave application

form and submit it along with a medical certificate signed by the attending medical

practitioner (registered with IMA) to her superior for approval, one week before proceeding

on leave.

b) On obtaining the necessary approvals, the officer should submit the completed & approved

leave application form to the local HR before proceeding on leave.

Public & Flexible Holidays

I. SCOPE

All officers working in offices other than JCP, SCP & ACP

II. PURPOSE

To enable officers to avail holidays to enjoy the local, regional or religious festivals.

III. POLICY

a) Public Holidays: All officers, including probationers, are entitled to a holiday on the below-mentioned 4

days -

Sr. Occasion Date

1 Republic Day 26-Jan

2 May Day 1-May

3 Independence Day 15-Aug

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4 Mahatma Gandhi’s birthday

2-Oct

Officers who are required to work on these holidays due to exigencies of work are

entitled to have a compensatory off, to be availed during the year, with prior approval of

their respective HODs.

b) Flexible Holidays:

In addition to the above-mentioned 4 holidays, all officers, including probationers, are

eligible for 8 days of holidays in a year (January to December) and officers may choose

those depending upon their individual work exigencies.

IV. PROCEDURE

At the end of each calendar year, HR/HO will circulate a list of public holidays to be

observed in the year ahead.

Leave Travel Allowance (LTA)

I. SCOPE

All confirmed officers.

II. PURPOSE

To provide leave travel benefits to all officers and their family members.

III. POLICY

a) Confirmed officers completing one-year of continuous service (including probation

period) in the company are eligible to claim LTA.

b) Officers have the option to avail the entire amount of LTA once in a block of two years

(commencing from the 1st Jan to the 31st of Dec) only in the second year.

27

c) LTA can be claimed for visiting any place in India on approved Privilege Leave (PL)

only.

d) The period of such leave should not be less than 3 (three) days and can be prefixed or

suffixed with weekly offs, Public holidays or restricted holidays.

e) Family for the purpose of this policy is defined as mentioned under the existing Income

Tax Rules.

f) Payment of LTA is subject to deduction of Income Tax as per the Income Tax Act

applicable from time to time.

g) LTA shall be paid as per the individual entitlement as mentioned below. In case the

actual expenditure is less than the individual entitlement, the balance amount would be

paid to the concerned officer, subject to necessary Tax deduction.

h) At the end of each block of two years, un-availed LTA, if any, would be encashed and

paid to the officers. No carry forward of un-availed LTA is permissible.

Hay Level

LTA (PA)

21 200000

20 150000

19 120000

18 90000

17 60000

16 40000

15 30000

14 20000

A 18000

B 15000

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C 12000

D 9000

E 7800

F 6000

i) Advance against LTA can be paid upto a max. of 80% of the individual entitlement and

such advance can be paid upto 2 months prior to the commencement of the journey, on

submission of the leave application form, duly approved by the respective HOD.

IV. PROCEDURE

a) To claim LTA, officers should submit the LTA claim form in prescribed format to local

HR within 15 days from the date of completion of journey.

b) While submitting the claim for LTA, officers need to submit the railway tickets or used

air ticket jacket(s) (as the case may be) in original.

c) To avail an advance against the LTA, the concerned officer needs to submit the LTA

Advance Application form duly filled up, along with the approved leave application form

to local HR dept. HR would verify & send the application to Finance for issuing the

payment.

Company Car

I. SCOPE

Officers in Hay level 17 & above & other officers having been provided with company

cars.

II. PURPOSE

To provide & govern the usage of the company cars.

III. POLICY

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a. Eligibility: All officers in Hay level 17 & above shall be eligible for having a company

car. The hay level-wise entitlements are shown below –

Hay Level Car Eligibility

Hay-21 Honda City EXI (Base Model) 'or' any other equivalent model (*)

Hay-20 Accent 1.6 GLS (Base Model) 'or' any other equivalent model (*)

Hay-19 Ford 1.6 EXI (Base Model) 'or' any other equivalent model (*)

Hay-18 Maruti Esteem VXI (Base Model) 'or' any other equivalent model (*)Hay-17 Maruti Zen VXI (Base Model) 'or' any other equivalent model (*)

Note: (*)

Equivalent models are defined as those cars with comparable showroom cost (as

observed in Mumbai) as the base model.

The Administration dept in Mumbai would maintain the list of equivalent models for

each category on a quarterly basis (for the subsequent quarter) and the list shall be

circulated to Administration Managers at all locations.

While enlisting the equivalent models for any base model, Administration department

should exclude those models with low resale value, or high maintenance & other costs.

Officers eligible for this benefit may choose the base model or any equivalent models

listed for the quarter as applicable at their respective Hay level.

Discounts, if any, will not be considered while comparing the cost of equivalent

models

b. Eligible officers with proper driving license shall only be eligible to operate company

provided vehicles.

c. Officers, provided with company cars are expected to take adequate care towards the

maintenance of the cars.

d. Expenses incurred towards repairs, maintenance, insurance, road taxes, parking etc. will

be borne by the Company and cannot be carried forward/adjusted with next month.

30

e. Officers, provided with company cars are expected to use it for official purpose only. The

monthly fuel limit to be used for company cars shall remain unchanged as stated in the

respective office / appointment letters.

f. The company cars shall be replaced after 36 months and the officers will retain the

existing cars until their replacement period.

g. Car Disposal: A specific panel will be formed to handle the disposal of Company cars at

the end of the lease period.

IV. PROCEDURE

a. While applying for a company car as per their respective entitlement, officers eligible are

required to submit copies of their driving license/Personal driver’s license to the respective

Administration department.

b. All the bills, wherever applicable, have to be submitted to the Finance department for

claiming the fuel reimbursement.

House Rent Allowance (HRA)

I. SCOPE

All officers in Hay-17 & below (w.e.f 1st April’2003 onwards) and officers (MCM &

Excom members) in Hay–18 & above (w.e.f 1st April’2006), who are not provided with

company accommodation, are covered under this policy.

II. PURPOSE

To have a uniform, equitable & easily administered House Rent Allowance (HRA) policy

for the officers, who are not provided with company accommodation.

III. POLICY

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a) The monthly HRA entitlement of an officer is a part of his annual compensation

package and shall be paid with his monthly Salary.

b) Any Income tax liability arising out of the HRA component shall be borne by the

concerned officer only.

A. Company leased accommodation

a) The Company will not enter into a lease agreement on behalf of an officer, except in

very special case, at the sole discretion of the management.

b) Officers currently staying in Company leased accommodation, will continue to do so,

on the existing terms & condition, until the expiry of the current lease tenure, and

thereafter, they will be covered under this policy.

B. Self Leased accommodation

a) In case of self-leased accommodation, the lease / rent agreement shall be between the

officer and the respective lessor.

b) With a view to assist the individual officer to pay the security deposit to avail an

accommodation in the primary posting location, the Company shall provide a one-

time Rent advance on actual subject to a maximum of his 12 months HRA, which

would be adjusted from the concerned officer’s monthly salary in 18 equal

installments.

To avail the rent advance, the officers need to make a written application to Sr. VP -

HR for the required approval & once it is approved, the advance would be paid by

accounts through an account payee cheque drawn in the name of the employee.

The officers availing the rent advance also need submit the copy of the Rent

agreement to HR/HO within 7 days of availing the advance.

c) The officers will also be entitled for a reimbursement of brokerage payment @ 1

month’s rent, as negotiated & mutually agreed, subject to a maximum amount

equivalent to his one months HRA, on completion of 30 days from the days of

occupying the new premises.

32

This brokerage will be paid once in every 3 years, if the officer shifts to a new

accommodation in the same place of posting. A valid receipt is required from the

property dealer for payment of such brokerage.

C. Own Accommodation

Newly joined officers residing in their own accommodation at their respective primary

location of posting, will not be entitled for HRA, except otherwise mentioned in their

appointment letters

Company Housing Policy

I. SCOPE

All officers located at plants, where company provided housing facility are available.

II. PURPOSE

To provide accommodation facilities to the officers, as per their individual grade or level

-wise entitlements, subject to availability.

III. POLICY

a) Officers in each of the existing plants shall be allotted company provided housing based

on the availability and allotment would be done as per the procedure designed for the

purpose.

b) Officers, who have been allotted company accommodations, shall not be entitled for

House Rent Allowance (HRA) as a part of their monthly salary.

c) The fixtures / utilities provided in the quarters will be as per the existing policies of the

individual plants.

d) Officers having been allotted company’s accommodation need to strictly follow the terms

& conditions mentioned in the respective house allotment letter.

e) Officers would be eligible for the payment of monthly House Rent Allowance (HRA),

once they vacate the company’s accommodation & shift to their own accommodation.

f) No such HRA would be payable to officers who would vacate the company

accommodation and shift to the rented accommodation

33

g) In ACP & SCP, where company’s quarters are available, the officers based there are

expected to stay in the company’s quarters only, especially those who are required for the

essential services.

h) The full & final settlement of the officers separated from the company would be done,

only after they surrender the company quarters.

Interest Subsidy on Housing Loan

I. SCOPE

All confirmed officers, who have completed minimum 3 years of continuous service with the

company.

II. PURPOSE

To facilitate subsidy on housing loan interest to enable the officers to acquire an asset in the

form of a residential accommodation at the respective place of employment or at any other

locations in India.

POLICY

A. Eligibility:

Interest Subsidy on housing loan will be granted to all officers who have completed min. 3

years of continuous service, at the discretion of the management. For computation of the

eligibility period of 3 years, the previous continuous service in the acquired company will

also be considered.

However, if an officer has already availed the interest subsidy on housing loan before the

completion of 2 years of continuous service with the company, he will become eligible for

interest subsidy prospectively, after completing 3 years of continuous service only.

Interest subsidy on housing loan will not form a part of the terms & conditions of

employment with the Company at any point of time.

34

Interest subsidy on housing loan will be provided for constructing or acquiring suitable

housing facilities by the officer and the registration of such housing should be in the name of

the officer or his spouse, either individually or jointly.

Exceptions to the Eligibility Criteria:

As the only case of exception, new recruits, who were entitled to interest subsidy on housing

loans in their previous organizations, could be allowed to avail benefits under this scheme, at

the sole discretion of the management.

B. Entitlement:

Loan amount, on which the interest subsidy will be paid by the Company shall be subject to

limits specified below –

Category Interest Subsidy LimitHay - 18 & above On loan upto a max of Rs. 8 lakhs

Hay - 17 & below On loan upto a max of Rs. 6 lakhs

These limits are subject to revision from time to time.

The agreement of housing loan should be between the individual officer and the Institution /

Bank from which the loan has been procured.

The company will not enter into any such loan arrangement with any Institution / Bank,

except for deducting the Equated Monthly Installment (EMI) and remitting to the concerned

Institution/ Bank, as long as the borrower is on the payroll of LIPL.

Officers availing these benefit shall be entitled to an interest subsidy @ 7% p.a. (on reducing

balance) or the actual rate of Interest payable by the officer, which ever is less, on the eligible

loan amount.

The maximum period of payment of Interest Subsidy by the Company to the concerned

officer on the housing loan acquired from Institution/ Bank shall be 240 months or the actual

time frame agreed by the Institution/ Bank, which ever is less.

35

The Interest subsidy payable shall be only upto and till the period of payment of last

installment or 240 months or upto the separation of the officer from the company, whichever

is earlier.

In case, an officer who is availing the interest subsidy is sent on expatriation to another

country, the payment of interest subsidy will be discontinued with immediate effect.

The amount payable as Interest Subsidy to the officers shall not be a part of the total

compensation package, on ceasing to avail this benefit.

The Interest subsidy paid to the officers as above will be subject to Income Tax rules as

applicable from time to time.

Necessary Processing fees to be paid to the Institution/Bank to get the housing loan will be

borne by the individual officer only.

Officers will be eligible for interest subsidy on such loan under the scheme only once during

the entire tenure of their services with the company, even in cases where the maximum

eligible limits are not availed by the officers.

Existing Interest subsidies on housing loans, if any, will continue as per their existing terms.

IV. PROCEDURE

A. Application Formalities:

An application in the prescribed format along with the necessary approvals should be

submitted to the local HR dept. through the respective HOD.

Once the loan is sanctioned by the Institution/Bank, a copy of the below-mentioned

documents have to be deposited with the local HR dept., preferably before 15 th of the current

month for incorporation in the payroll –

i. Agreement of the house/ flat purchased or proposed to be purchased.

ii. A copy of the Interest subsidy application form and the loan sanction letter from the

Institution/Bank specifying amount of loan availed, the rate of interest charged, EMI

payable and the repayment tenure.

iii. Authorization letter from the officer for deducting the EMI from his monthly salary.

36

Officer’s Temporary Advance - OTA

I. SCOPE

All confirmed Officers.

II. PURPOSE

To enable officers to purchase consumer goods for personal use, with an aim to enhance

the quality of life.

III. POLICY

a. Each year, during August/September, application shall be invited from officers for OTA,

against the following items -

Item

Val

ue

Max. Permissible Limit (Rs.)

Car

@ 7

5% o

f th

e co

st

150000Scooter/Motorcycle 30000Moped 10000Refrigerator 8000Air Conditioner 18000Car Air Conditioner 12000Air/Desert Cooler 3500Cycle 1500Portable Generator 10000

37

Household Article 30000PC with Printer 40000

b. The advance will be allowed upto a max. @ 75% of the cost of the item or the maximum

permissible limit, whichever is less.

c. No officer shall be allowed OTA for more than Rs. 150000/- at any point of time.

d. Interest will be charge @ 7% per annum on such advances on reducing balance.

e. The amount with interest shall be recovered from the officer’s salary in consecutive

monthly installments for max. 60 months effective from the date of payment. Installment

period in no case shall exceed beyond 60 months.

f. An officer is eligible to apply for a second advance, only after the entire amount of the

first advance is recovered against his salary.

However, in case, an officer still applies for more than one advance at a time, the

disbursement of such advance would purely be at the discretion of the Management.

IV. PROCEDURE

a) The applications shall be invited through a notification in the respective locations and the

advance shall be disbursed based on first come first serve basis.

b) All applications should be addressed to the local head of P & A of the respective

locations.

c) Sanctioning Authority: Personal loan applications would be sanctioned by the concerned

authorities as mentioned below -

38

Unit Authority

Plants Local HR head & Plant ManagerEOO VP – P & IR & Sr. VP –

ManufacturingHO Sr. VP – HR

d) Officers availing the personal loans should furnish the necessary receipt from the seller

/vendor as proof that the advance has been fully utilized for the purpose, for which it was

granted to him, for within 30 days from the date of receipt of the advance.

e) Failure to submit the necessary receipt within stipulated time frame would enable a 100%

recovery of the entire amount of advance along with the interest on it calculated @

prevailing bank interest rate, from the salary of the concerned officer immediately.

Employee Healthcare Policy

I. SCOPE

All officers.

II. PURPOSE

To provide health care benefits to officers and their family members.

III. POLICY

A. Domiciliary Treatment:

Sonadih (SCP)a) Officers transferred from TISCO and their family members will continue to avail the free

health care benefits from the local Medical center as mentioned in their terms of

employment.

b) Though under normal circumstances, the treatments would be carried out in the local

medical center, any referral for specialized treatments required elsewhere in the country

will be based on the recommendation of the Company Doctor.

In such cases, the Company shall bear the entire amount of medical expenses incurred on

actual, including the following -

39

i. Traveling expenditure of the concerned officer or any of his family members and an

escort would follow the same level-wise eligibility mentioned in the domestic travel

policy.

ii. An officer, as a patient or as an escort, shall be paid to a daily maintenance allowance as

mentioned below.

iii. This allowance is payable for the period, the officer/patient remains without getting

admitted to the referred hospital / nursing home / medical clinic at the outstation location,

or is undergoing out door treatment including the waiting period .

B. Hospitalization Treatment:

a) All officers and their family (upto a max of self & five dependents) members are covered

under a mediclaim policy procured by the company and the annual mediclaim coverage

are as follows –

Hay level

Annual Coverage (Rs.)

18 & above 500000

17 & below 350000

‘Year’ for the purpose of mediclaim coverage shall be from 26th July to 25th July of the

following year.

40

Metros Rs. 200

Other Cities Rs. 150

b) The officers undergoing treatment during hospitalization shall submit their

hospitalization expenses on prescribed format to local HR for claiming reimbursement

from the insurance company.

c) The officers shall be guided by the terms and conditions of the Mediclaim policy and

may contact local HR for any support.

IV. PROCEDURE

a) An officer on joining the Company need enroll himself under the Mediclaim Insurance

coverage. Local HR would ensure that it is done on the first day of joining itself.

b) Officers are required to submit the relevant details of his family members to the local HR

to enable this coverage on DOJ itself.

c) In case of referral, the officer should inform the local HR within stipulated time (as

mentioned in the Policy doc) so as to make a claim as per the individual entitlement for

the reimbursement of such expenditure under the Mediclaim coverage.

Group Personal Accident Insurance Policy

I. SCOPE

All officers.

II. PURPOSE

To provide financial security to the officers, by way of insurance coverage against any kind

of legal disability or death, due to accident at anywhere in the world, during their employment

with the company.

IV. POLICY

a) The officers will be covered under Group Personal Accident Insurance Policy as

under –

41

Band / HaySum Assured (Rs. in lakhs)

Hay -18 & above 50 Hay -15 to 17 20 Hay -14 10 Band - C to A 10 Band - D & Below 7.5

b) Under this coverage, in the event of death or Permanent total disability, an officer /

nominees will be eligible for compensation as stated above as per the insurance

regulations & guide-lines of the Insurance company.

c) Intentional self-injury, suicide or attempt to suicide or any adventurous activities etc. will

not be covered under this policy.

IV. PROCEDURE

a) Intimation of fatal or serious accident should be intimated to HR dept. based at EOO,

within 24 hours of its occurrence.

b) In the event of any fatal or serious accident, the claim form duly filled up, along with all

the necessary documents i.e. death certificate, permanent partial disability or permanent

total disability evidence, police FIR, panchnama, doctor certificate, as the case may be,

should be submitted to the HR Dept. at EOO as soon as possible for processing the claim.

Accident Insurance

(For Units only)

I. SCOPE

All officers, working at various units of the Company.

II. PURPOSE

42

To provide financial security to the officers, by way of insurance coverage, against any

kind of accidents caused during the course of employment.

III. POLICY

a) Officers based at the plants are covered under the accident insurance plan for 24-

hours.

b) Officers covered under the Workmen’s compensation Act will also be covered under this

scheme.

c) Every case of accident should be reported immediately to the concerned departmental

head and failure to do so shall render the injured person’s absence accountable to causes

other than accident and the time lost will not be paid for.

d) Some injuries appear to be trivial at the initial stage, & therefore, do not get reported &

attended to, but later proved to be serious and may result in permanent, total or partial

disablement. Therefore, whenever there is an injury, officers should immediately inform

the concerned HOD and get the first-aid done.

e) In case of death, the heir of the deceased officer will be paid a funeral grant of Rs. 2000/-

as per the scheme.

IV. PROCEDURE

For any accidents within Company premises

a) In case of serious injury / fatal cases inside the plant, due to an accident or otherwise,

the departmental supervisor on duty should immediately inform to the Safety Officer

in writing, in the format prescribed by the Safety Officer. The HOD, HR and

Company’s Medical officer should also be informed of the occurrence within 2 hours.

b) Company’s Medical officer should examine the injured officer and recommend the

treatment to be provided to him.

c) Where the accident results in death or injury preventing the injured officer to work for

48 hours or more, a notice in the prescribed format should be sent to the Inspector of

Factories.

43

d) Owing to the accident arising out & in the course of employment, the absence of

officer will be treated as accident leave & full salary will be paid to the officer

concerned as if he is on duty.

e) Procedure regarding treatment of injured officers including escort’s arrangement and

related expenses shall be regulated in accordance to the Health Care policy guidelines

decided at the local plant level.

f) Sr. VP - HR based at HO, Mumbai should be informed of this accident within 48

hours of its occurrence.

g) Safety officer will prepare a detailed report on the occurring of the accident within 48

hours of its occurrence. However, in case of fatal accident, the Safety officer will

inform the local authorities as required under the Factories Act.

h) In case the accident involving the Safety officer, the concerned supervisor, a

representative from the local HR dept. and any other agency involved should be

present on the sit

Transfer & Relocation Assistance Policy

I. SCOPE

All officers, including probationers.

II. PURPOSE

a) To facilitate & support an officer relocating from one location to other with maximum

ease and ensure that he gets settled in the new location smoothly.

b) To provide financial assistance to meet the increased liability or expenditure, if any, in

the transferred location.

c) To define the various limits for reimbursement of expenses applicable to officers at

different bands & levels.

44

III. POLICY

As per the basic terms of employment, an officer is liable to get transferred / relocated to

any department / location / establishment of the company, currently having or may have

in near future, depending upon the business exigency.

Officers relocating from one place to another are eligible for certain Relocation benefits

payable only when the expenses are actually incurred by the concerned officer.

However, Relocation benefits will not be applicable in the below-mentioned cases –

i. Where, the transfer is requested by the officer, and

ii. Where, the compensation package of officer had already been restructured

considering the proposed transfer / relocation and had already been communicated

to him. The place of transfer in such cases, would be considered as the place of

primary posting.

Therefore, officers in such cases will not be eligible to claim any such relocation

assistance mentioned under this policy.

The various benefits applicable to transfer / Relocation are as under -

1. Traveling Expenses

a) Mode of Travel: Officers proceeding on transfer will be allowed to claim actual rail / air

fare for self & the family who are actually residing with the officer. The mode & class of

travel would be the same, as mentioned in the Travel (Domestic) policy.

b) Travel by own car: In case, the officer travels in his own car, he would be eligible to

claim reimbursement @ Rs. 6/- per km for the distance covered by the shortest route and

the officer shall not be entitled to claim fare by and other mode of transport.

If any of his family members travels in his car, the officer shall not be entitled to claim

fare by any other mode of transport for that respective member(s) of his family.

45

2. Lodging & Boarding Expenses in scouting trip

a) The officers considered for transfer are allowed to undertake a scouting trip with his

family (*) with prior sanction from his respective HOD, to the proposed transferred

location for a maximum period of 15 days for the purpose of identifying suitable

accommodation, initiating children’s school admission etc. However, the period can

be extended with necessary approval of the concerned HOFs.

b) The officers are also expected to initiate the basic handholding process in the new

locations.

c) The expenses incurred in this trip would be reimbursed by the company as per the

same band / level-wise entitlements mentioned in the Travel (Domestic) policy. Any

tax burden arising has to be borne by the concerned officer.

3. Relocation Allowance

a) Officers transferred from one location to another shall be entitled to a monthly Relocation

allowance payable per month, as per the Matrix shown below -

From

Mumbai Kolkata ACP JCP SCP

State capitals & other A & B cat cities To

Mumbai - 2000 5000 5000 5000 5000

Kolkata - - 3000 3000 3000 3000

JCP - - 2000 - 2000 -

SCP - - - - - -

46

ACP - - - - - -

4. Security Deposit & Brokerage (for getting accommodation in new location): In order to

pay the security deposit & brokerage to avail a new accommodation in the transferred

location, employees transferred would be entitled to receive an adjustable advance as per

the eligibility Plan mentioned in the HRA policy.

IV PROCEDURE

a) All the expenses related to the transfer / Relocation would be borne by the Transferee

unit, on receipt of Transfer letter issued by the respective HOF & VP – P & IR / Sr. VP -

HR.

b) Officers getting transferred / relocated from one place to other should get the necessary

clearances from all the concerned departments of the transferor units in the prescribed

‘Transfer Docket’ and ensure that the docket is sent to the local HR dept. of the transferee

units.

c) All claims for reimbursement of expenses incurred by the officer must be submitted to

local HR (Transferee) along with all the original bills,

Domestic Travel

I. SCOPE

All officers including probationers & Trainees, undertaking domestic travel on company

business.

47

II. PURPOSE

To lay down the level-wise entitlements of various expenses incurred by the employees

while traveling on Company’s business within India.

III. POLICY

a) All travels on official purpose have to be approved in advance by the respective

HODs in the prescribed ‘Travel Requisition form (TRF)’ and all expenses incurred on

travel will be reimbursed on actual basis, subject to the limits prescribed in the policy.

b) A Travel advance can be drawn upto 2 days prior to the date of departure on tour. No

second Travel advance shall ordinarily be granted unless the earlier one has been

cleared.

c) ‘Travel Requisition form (TRF)’ form should be made in duplicate. Original form

should be retained by the officer and submitted along with the Travel Expenses Claim

Form. The 2nd copy should be forwarded to the Finance Department for drawing

advance.

IV. Entitlements related to domestic travels:

1. City categorization :

Cat Cities

Metro Mumbai, Delhi, Kolkata & Chennai

‘A’Other state capitals and Pune, Nagpur, Ahmedabad, Baroda, Surat, Siliguri, Darjeeling, Dhanbad, Jamshedpur, Muzaffarpur, Puri, Cuttack Dimapur & Silchar.

48

‘B’ All other cities not covered under the above-mentioned 2 categories

2. Mode of Travel :

a. The specific mode of travel applicable to employees in various bands / levels are

mentioned in the attached matrix –

Band / HAY

Mode of Travel

Air Train Road

C & Below N/A AC - II Shared Taxi / AC BusA & B AC - II 14 – 16 Eco AC - I Taxi / AC Bus17 Eco AC - I Hired / AC Car18 Eco AC - I

b. Deviation or exception in the mode of travel would not be considered in normal

scenarios, however, in case of business exigency & under special circumstances, the

same may be approved by the concerned Ex-com member on specific recommendation of

the concerned HODs / Unit Head.

c. In case of travel by train, actual fare shall include the reservation charges and Travel

Agent’s service charges, as the case may be.

d. Non-availability of reservation while traveling in train is not an acceptable reason for not

undertaking the journey connected with official work. Expenses incurred in confirming

the tickets may be approved on case-to-case basis by the concerned Plant

Managers/HOFs.

e. Officers using own vehicles for official outstation travel, would be reimbursed as under –

4 wheeler (run on petrol) - Rs. 6.00/- per km

Two Wheeler - Rs. 2.00/- per km

49

The officers concerned are required to maintain the log book & get it approved by the

concerned HODs on time to time.

3. Lodging & Boarding Expenses:

i. The band/level-wise entitlements of daily lodging & boarding expenses are specified in

below-mentioned matrix.

Staying at Hotels

Band / HAY

Lodging / day Boarding / day

Metro A B Metro A B

C & 1400 900 750 250 150 125A & B 1500 1000 800 300 250 20014 – 16 3000 2000

Actual17 Actual18

Staying at own arranged places

50

Band / HAY

Own Arrangement

Metro Other City

C & Below

300 200

A & B 200 125

14 – 16 500 300

17N/A

18

ii. Officers while traveling on official purpose should stay in company’s Guest House or

Company provided accommodation, wherever available and in these cases, the officers

would be eligible for a reimbursement of out of pocket expenses @ 25% of the normal

boarding charges, on production of bills.

iii. When a team comprising officers of different bands/levels, is traveling together for a

common assignment, the stay of the entire team could be approved in the same hotel

(specified for higher bands/levels) on Twin sharing basis, in order to maintain the spirit &

moral of the team.

iv. In case of 2 officers staying in the same room on Twin sharing basis, the entitlement for

each of them would become @75% of their individual maximum eligibility.

6. Other Expenses:

i. Actual postage, telephone & e-mail expenses incurred in connection with official work

would be reimbursed against submission of supporting bills.

ii. Actual charges incurred in carrying Company’s material/papers/documents etc. shall be

reimbursed.

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iii. Whenever officers in Band A & below are deputed to attend Seminars/conferences,

where the participation fee includes an one-time meal and lodging facility, the eligibility

to claim reimbursement of boarding expenses will be @ 60% of the actual entitlement.

V. Procedure of Reimbursement of Travel Expenses:

i. While traveling on official purpose, employees are advised to incur all the expenses

themselves and submit the expenses statement in the appropriate format along with all the

bills, receipts etc., in original, within 7 (seven) days of the completion of tour.

ii. However, for sales personnel, travel bills should be submitted fortnightly. The bills shall

be reimbursed once those are approved by the concerned HOD/HOF.

iii. While submitting the Travel Expense Reimbursement claim form, it should be

accompanied with the below-mentioned documents in original –

For, Travel by Train: Tickets checked by Railways.

For, Travel by Air: Travel ticket jacket

Supporting Hotel bills for lodging and boarding.

International Business Travel

I. SCOPE

All officers.

II. PURPOSE

To lay down the guidelines & level-wise entitlements of various expenses incurred by the

employees in international travel on Company business.

III. POLICY

a) All international travel for conducting company business must be approved in advance by

the respective HOF / Sr. VP - HR for all officers, except the members of Ex-com.

International travels of Ex-com members need to be approved by Chief Executive Officer

(CEO).

52

b) Officers traveling for interviews/reconnaissance visit will be covered by the Expatriation

policy of the Group.

c) All travel arrangements should be made through the Administration dept. based at

EOO/HO, who would organize the entire travel plan through the already identified travel

agencies.

d) Officers planning for international business travel should provide a copy of their itinerary

to the respective supervisors before leaving for the tour.

IV. Entitlements related to International travels:

1. Expenses incurred while traveling (En-route):

Officers are entitled to use taxis for transfers from the airport to respective destinations of

overseas locations.

2. Lodging & Boarding Expenses:

i. Officers must stay in the Company specified hotels as arranged by the organizers of the

event / seminar / meeting / training etc.

ii. Where boarding & lodging expenses are to be allocated and invoiced to the Company

directly, an advance of US $ 20/- per night per trip will be allowed to the officers to meet

various incidental expenses, for which no bills/receipts/voucher are required.

iii. Where the boarding and lodging expenses are to be borne by the officer himself, the

approximate Travel advance needs to be computed as per the Cash advance table

mentioned herewith.

An advance of US $ 20/- per night per trip will be allowed to the officers to meet various

incidental expenses, for which no bills/receipts/voucher are required.

iv. In case, an officer on international trip extends his stay for personal reasons, expenses

pertaining to boarding, lodging & all incidental expenses, related to that extension, have

to be borne by the concerned officer and should not be clubbed with official expenses.

53

v. Officers accompanied by their spouse on an International business tour have to bear the

cost of traveling, boarding, lodging & other incidental expenses of the spouse and all

these expenses should be settled separately.

3. Cash Advance

i. To avail cash advance, officers undertaking international business travel need to have

written approvals from VP – Accounts & Control / Sr. VP - HR. Cash advance would be

provided as per the details mentioned in the table below.

Type of Expense

Per Night

Expenses

One time

Expenses

Lodging As per the details received

from the organizers

Boarding (Per meal) (*) 25 N/A Local Conveyance 25 Airport Tax N/A 10 Incidental Expenses 20 N/A

ii. Cash advance will be provided after calculating only those expenses the traveling officer

is expected to pay himself.

iii. Officers provided with credit cards, would be eligible for cash advance, only for the local

conveyance, incidental expenses and airport tax expenses.

iv. A one-time reimbursement of Rs. 7500/- is paid to an officer going on an International

Business tour for the first time, to enable the officer to buy baggage, woolens, clothes etc.

V. PROCEDURE

a. All expenses incurred by an officer during International business travel should be

properly documented in the specified Expense sheet (International Travel Expenses

statement), get it approved by the respective HOF and then, to be submitted to the

Accounts dept within two weeks of returning from the trip.

54

b. Necessary bills/receipts/vouchers etc. for the expenses incurred on tour need to be

submitted attached with the Expense sheet.

c. Any balance money out of the Cash advance provided to the officer before tour should be

returned to the Company along with the Expenses sheet duly approved by the concerned

HOF.

d. Officers are required to submit the Tour Report along with the Time sheets to the

respective HOD

Mobile Phone Policy

I. SCOPE:

All officers.

II. PURPOSE:

To enable the employees to improve the communication, accessibility and to have a

better response & turn around time (TAT)

Drawing a set of guidelines for issuing Mobile Phones and keeping a track of its usage.

III. ELIGIBILITY:

Mobile phone handset: All officers in Band ‘B’ & above Sonadih Plants shall be provided

with mobile phones of model, which is selected & approved by the company based on its

cost & quality of reception.

IV. PROCEDURE:

A. Issuing Mobile phone:

All such approvals for issuing mobile phones to officers in Band ‘B’ & above

based at the plants would be done by the respective Plant Manager.

55

For all others not covered above, the same would be approved by Sr. VP –

Manufacturing / Sr. VP - HR. The issue of mobile phones would be approved on a

case-to-case basis & absolutely based on the business exigency.

Upon receiving the necessary approvals, Local HR & Admn dept shall procure

the mobile phones as per the approved models applicable from time to time.

All matters related to warranty, repairs etc. of the handsets would be dealt with

directly by the officer with the supplier/vendor etc.

Replacement of mobiles, in case of failure of spare parts / instrument would be

done at the discretion of the Plant Manager, after exploring the options of

repairing the damaged / malfunctioning instrument.

B. Monthly usage & Billing:

Service Provider:

Local HR & Admn dept. will take the necessary initiative to identify the best service

provider, both in terms of quality & rate and/or special schemes available in the market.

Monthly Limit:

Officers are requested to ensure that the monthly billing does not exceed Rs. 1500/-

Officers are expected to use the mobile phone facility for official work only.

Personal calls should be identified and a separate cheque carrying the cost of those

personal calls have to be submitted, while forwarding the monthly bills to Accounts dept

for clearing. Accounts dept. will clear the bills, only after obtaining the payment for

personal calls.

Any excess billing in special cases would be cleared as per the approval of the respective

Plant Managers only.

C. On Separation

In case of officers leaving the organization at any point of time during the year, the below-

mentioned steps to be followed –

56

i. Officers should handover the mobile phone handset along with the SIM card to the local

Administration dept. on their respective last day of working.

ii. Local Administration dept. would indicate the surrender of the mobile phone handset &

the SIM card in the ‘No dues certificate’ and would also advise the respective service

providers to cancel the connection with immediate effect.

Educational Assistance Policy

I. SCOPE

All officers.

II. PURPOSE

To provide financial assistance to the officers, who desire to enroll for higher education,

which will mutually be beneficial for the officer as well as for the company.

III. POLICY

a) The Company recognizes the value of self-initiated efforts to enhance knowledge

instrumental to career development. The Company may, at its discretion, provide

financial assistance to an officer desiring to pursue higher education, which shall create a

positive impact on his day-to-day performance in the Company.

b) The company reserves the right to approve the education assistance to officers at its

discretion.

c) The company also reserves the right to reject the education assistance application by an

officer at its discretion.

d) The program selected by an officer must be from universities recognized by AICTE &/or

Dept of HRD, Govt. of India and should lead to a Professional qualification

(diploma/degree) upon successful completion.

57

e) Officers availing the educational assistance have to serve the company for a min. period

of 2 (two) continuous years after completion of such course, failing which, total amount

of Educational Assistance paid by the company would stand recoverable from the officer.

IV. PROCEDURE

A. Application for Assistance:

Officers wishing to avail Educational Assistance need to apply to Sr. VP - HR through

the respective HOF.

Sr. VP – HR, after reviewing the application, may approve the same and the decision in

this regard would be communicated to the officer and the concerned HOF.

B. Payment of Assistance:

1. On successful completion of the course, the officer will be reimbursed full course fees.

2. In order to avail the reimbursement, the officer needs to submit the original money

receipts, passing certificate / mark-sheet and the copy of the approved application to local

Finance to claim the reimbursement.

3. In case, the course is of more than one semester / year and the course fee is payable on a

semester/yearly basis, the officer shall be reimbursed the semester/year–wise course fees,

on submission of original money receipts, passing certificate / mark-sheet for the

semester/year.

C. Examination Leave:

Officers may be granted additional leave at the discretion & prior approval of the

respective HODs on the dates of the examinations. This leave would be treated as ‘Leave

Without Pay (LWP)’ for a specified period of time as may have been agreed upon

between the officer & the concerned HOD and un-availed leave will not be carried

forward or encashed at any point of time.

58

Long Service Awards

I. SCOPE

All Officers

II. PURPOSE

To recognize the contribution made by an officer towards the growth of the Company

through his dedicated services for a considerable period of time.

III. POLICY

a) Long service awards will be presented to those officers who have completes 15 & 25

years of services respectively with the Company. The length of service shall be

computed from the date of joining.

b) While calculating the no. of years of service of the officers transferred from TISCO &

Raymond, the past services with their respective erstwhile employments are also

considered. However, to become eligible for the long service awards, 15th or 25th year

of service of an officer should fall during his present employment with Lafarge India

Pvt. Ltd.

c) Awards

IV. PROCEDURE

Local HR will identify the officers eligible for long service awards on a yearly basis and

forward the list to HR at HO by 5th March every year.

The awards will be procured by HR at HO / Local HR

59

Yrs of Service Awards

15 Silver coin weighing 500 gms25 Gold coin weighing 20 gms

The awards will be presented in April every year.

Retirement Benefits

I. SCOPE

All officers.

II. PURPOSE

To ensure that the officers enjoy financial security after they retire from the services of

the company.

III. POLICY

All officers shall be covered under the existing social security schemes of the company as

per the brief details mentioned below –

III.1. Provident Fund

The Company is covered under the Employees Provident Fund & Miscellaneous

Provisions Act, 1952. The Act enables both the employer as well as the officers to

contribute to employee’s provident fund on a monthly basis, which would ensure the

social & financial security of the employees after they retire from the services of the

company.

In the event of premature death of the officers, the deposits made in the fund ensures the

financial security of the dependants of the officers.

Contribution to the Fund:

Every month, both the individual officer and the Company contribute @ 12% of monthly

basic each. Out of the company’s contribution of 12%, 8.33% is deposited in Employee

Pension scheme subject to a maximum of Rs. 541/- and the remaining 3.67%, along with

the entire contribution of 12% by the individual officer is deposited in the Provident

Fund, maintained with the Regional Provident Fund Commissioner

60

The amount contributed in every month by both the employer and the officer are

accumulated & accrued in the PF account of the officer and the officer may withdraw the

amount after his superannuation. In case of transfer or changes of his services, he can

either withdraw the same or may get it transferred to his new PF account. An officer can

avail non-refundable PF loan from the amount deposited in his PF account for the

purpose of House Building, Children’s education, marriage, sickness etc. subject to

fulfillment of specific norms to be followed under PF rules in this respect.

III.2. SUPERANNUATION

The ‘Lafarge India Ltd. Superannuation’ scheme extends to all the confirmed officers

below 60 years of age. Officers who has either been appointed or whose services had

been extended by the company after they had attainted the age of 60 years are also

covered under this scheme, up to 65 years of age.

Contribution to the scheme:

Annual Contribution @ 15% of the basic salary is made by the company in

respect of each eligible officer. However, the contribution made by the Company in a

year in respect of an officer under this scheme, along with the contribution made towards

Provident Fund in respect of the same officer, for the same year, shall not exceed @ 27%

of the basic salary paid to the officer in that year.

New Recruits:

The benefit is applicable to the new recruits once their services with the Company are

confirmed, with effect from their respective date of joining.

Contribution from past services:

In respect of an officer who at the time of his entry into the Scheme has past Service to

his credit, lump sum contribution relating to his past Service not exceeding the aggregate

15% of the total Salary received by the officer in the course of such past Service may, at

the sole discretion of the Company be transferred to this scheme on the date as the

Company may decide.

61

Pension

The benefits under the superannuation scheme shall be paid only in the form of pension

payable in monthly or quarterly or annual installments, as desired by the officer or the

nominees appointed by the officer, provided that the amount payable in either of these

cases is not less than Rs. 1000/-.

However, if the officer or the nominees, as the case may be, so desire and the Trustees of

the superannuation fund agree, a part of the pension may be paid to the officer through a

single lumpsum payment, provided that the payment shall not exceed –

(a) In case the officer receives gratuity, the value of 1/3rd of the pension, which the

officer is normally entitled to receive, and

(b) In other cases, the value of ½ of the pension payable.

In the event of retirement before attaining the normal age of superannuation, or in case of

premature death or voluntary or involuntary termination of service, Pension under this

scheme, shall be payable to the officer or the nominees appointed by the officer, as the

case may be.

III.3. GRATUITY

Gratuity is a statutory retiral benefits payable to an officer having worked for minimum 5

years of continuous service with the company. Officers are entitled to benefits as

applicable under the Payment of Gratuity Act, 1972.

Gratuity is payable to an officer along with the full and final settlement., subject to a

maximum of Rs. 350000/-

62

Gratuity Calculation:

Gratuity = 15 days wages X No. of Completed years of Service

Note:

i. While calculating the no. of continuous years of service, any part-year of

continuous service in excess of 6 months is considered as one year.

ii. 15 days wages is calculated as = 15 X last drawn Monthly Wages

26

III.4. Other Retirement Benefits: On retirement, the officers shall be entitled for other

benefits as under -

I) Farewell

A formal farewell shall be organized by the respective unit/offices in co-ordination with

HR for the retiring officer on his last day of working.

A farewell gift worth Rs. 3000/- shall be awarded to the retiring officers on be-half of the

company.

A service certificate shall be issued to the retiring officer.

II) In case the officer is posted at a location far away from his native place, he is also

provided with the below-mentioned benefits on retirement -

Transportation of household articles

Company will bear the cost of transporting the household articles of the retiring officer

from his place of posting to the native place (as mentioned in the personal record) and in

all such cases, the procedure to be followed shall be same as specified in the Transfer &

Relocation Assistance policy.

Traveling Expenses

63

Company will also take care of the traveling expenses of the retiring officer and his

family members from his place of posting to the native place and in all such cases, the

entitled limit as well as the procedure to be followed shall be same as specified in the

Travel (Domestic) policy.

IV. PROCEDURE

a) Officers on joining the company need to fill the declaration & nomination forms as

required under the PF, Superannuation & Payment of Gratuity Act, on their first day of

joining itself.

b) The retiring officers need to surrender the company quarters / company provided

accommodation within 3 (three) months from the date of his retirement.

c) The full and final settlement of the officer will be carried out subject to surrender of the

quarters / company provided accommodation and getting the necessary clearances.

REVIEW OF LITREATURE

I. Using employee volunteering programs to develop leadership skills

Author(s): Christine Bell

Journal: Development and Learning in Organizations

64

The purpose of the paper was to examine the use of employee volunteering programs to develop

leadership skills.

During the study it was found that employee volunteering programs provide a potentially rich

source of learning for team leaders and other volunteers. Such a strategy can encourage

employees to recognize learning opportunities for their own leadership skills.

II. Moving towards a “learning-based organization”

Journal: Development and Learning in Organizations

The purpose of the paper was to explore employee perceptions of the development of a learning

culture in a medium-sized manufacturing company aspiring to become a learning organization.

The company was using learning to develop its competitive edge, and employees were at various

stages of understanding and accepting the need for learning and competence development on the

job to sustain and develop the company. During the study a tension was detected between the

company's objectives and the aspirations of some employees, but the majority appeared to accept

the overt learning policy as good for them and the company. This study contributes towards a

better understanding of the perceptions of employees in the development of a learning

organization, rather than from the organizational or management perspectives that tend to

dominate the literature.

III. The impact of downsizing on employees' affective commitment

Author(s): Jaewon Lee, J. Martin Corbett

Journal: Journal of Managerial Psychology

To examine the mechanisms through which downsizing affects employees' affective commitment

to the organization

The results show that the more severe the extent of downsizing, the lower employees'

affective commitment to the organization. Moreover, downsizing has an impact on employees'

affective commitment to the organization through several of the daily work experiences of

65

employees. Thus, downsizing affects employees' affective commitment to the organization both

directly and indirectly. However, its indirect impact is much stronger.

Sympathetic management of downsizing can minimize the negative impact on the affective

commitment of surviving employees.

IV. How employers can ease pain of job losses

Journal: Development and Learning in Organizations

The purpose of this paper is to examine how employers can ease the job loss situation for

employees.

The paper finds that job counseling and training programs may influence different

levels in the labor market. At the macro level, such programs can be vehicles shifting human

resources to where they are needed in the labor market. On the organizational level, they can

enhance human resource utilization, decrease perception of psychological contract breach, and

minimize internal strains and organizational conflict. On the individual level, they appear to be

an efficient way for dealing with the dismissed or remaining workers and helping them in their

quest for a new job or retraining. Consequently, many of the psychological, familial, and social

disturbances brought on by the dismissals, or the organizational crisis, may be avoided.

RESEARCH METHODOLOGY

a) Database:

This study is based on both primary and secondary data. A structured interview

schedule would be used to collect the primary data from the employees of

LAFARGE. The secondary data for the study would be collected from annual

reports and records of LAFARGE including published material on the topic.

66

b) Sample design:

Stratified random sampling procedure would be followed to select the respondents.

A required data would be collected through a schedule. The sample size is 50 and

the schedules had been given to the employees in LAFARGE ramachandrapuram

branch.

c) Data Analysis:

Appropriate but simple analytical methods like cross tabulation, pie-charts, bar

charts, chi-square tests, etc would be employed to analyze and interpret the data

collected.

Limitations

The limitations in this study are:

1. The research cannot be generalized because findings are relevant to LAFARGE.

2. Details regarding monetary remuneration by the respondents may not be

accurate.

3. The respondents were not very interested in filling the schedules

Expectations from the study

To study and learn more about the welfare measures and how they are utilized in

the organization

To know and understand to what level the performance is affected by the welfare

measures

To gain an insight into the legal provisions for welfare measures and how well

they have been followed by LAFARGE.

67

Data collection:

Primary data:

Collected through responses of employee related to the topic with the help of the

structured questionnaire.

Secondary data:

Collected through brochures and web site

Sampling:

Population-Employees of LAFARGE, Hyderabad

Sample size-50

Data Analysis & Interpretation 1) How would you rate your satisfaction level with regard to the following welfare

measures?

a) ‘Rest room facilities given to the respondent’

Satisfaction level Number of Percentage

68

respondents

Highly Satisfactory 2 4%

Satisfactory 16 32%

Not aware 0 0

Not satisfactory 27 54%

Highly not satisfactory 5 10%

Total 50 100

Source —Primary data

Analysis: The table shows that 54% of the respondents are not satisfied with the rest room facility given to them. And only 4% is highly satisfied with the rest room facility.

HS S NA NS HNS0

10

20

30

40

50

60

No of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

The analysis shows that the respondents are not at all satisfied with the rest room facility provided to them. As rest room is one of the main and important facilities in an organization.

b) ‘Opinion about the drinking water facility’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 1 2%

69

Satisfactory 48 96%

Not aware -- --

Not satisfactory -- --

Highly not satisfactory 1 2%

Total 50 100%

Source —Primary data

Analysis:

The table shows that 96% of the respondents are very much satisfied with the drinking water facility provided to the respondents.

HS S NA NS HNS0

102030405060708090

100

no of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

Drinking water facility provided by LAFARGE is mostly satisfied by the respondents.

c) ‘Opinion about Medical and first aid facilities provided to the respondents’

Satisfaction level Number of

respondents

Percentage

70

Highly Satisfactory -- --

Satisfactory 46 92%

Not aware -- --

Not satisfactory 4 8%

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis:

The table shows that 92% if the respondents are satisfied with the medical and first aid facilities provided by the company but there are 8 % of the respondents who are not satisfied with the medical facilities given to them.

HS S NA NS HNS0

102030405060708090

100

no o respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

The analysis shows that most of the respondents are satisfied with the medical facilities provided by the company but the company also has to verify why the other 8% of the respondents are not satisfied and verify them.

D) ‘The opinion regarding the canteen facilities provided to the

71

respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 5 10%

Satisfactory 25 50%

Not aware -- --

Not satisfactory 15 30%

Highly not satisfactory 5 10%

Total 50 100%

Source —Primary data

Analysis:

The table shows that 50% of the respondents are satisfied about the canteen facility in the organization and 30% of the respondents are not satisfied with the canteen facility.

HS S NA NS HNS0

102030405060708090

100

no o respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference: As I have been a part of the organization for a month during the project I found out that the canteen in the organization provides good services and good quality food.

e) ‘Opinion about the crèche facility provided to the respondents’

72

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory -- --

Satisfactory -- --

Not aware 44 88%

Not satisfactory 5 10%

Highly not satisfactory 1 2%

Total 50 100%

Source —Primary data

Analysis:

The table shows that 88% of the respondents are not aware of the crèche facility and 10% of the respondents are not satisfied with the facility.

HA S NA NS HNS0

102030405060708090

No of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

LAFARGE do not provide crèche facility to the respondents and if they provide it would be of great help to the female employees in the organization.

73

f) ‘Opinion about the occupational safety provided to the respondent’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory -- --

Satisfactory 46 92%

Not aware -- --

Not satisfactory 3 6%

Highly not satisfactory 1 2%

Total 50 100%

Source —Primary data

Analysis: The table shows that 92% of the respondents are satisfied with the occupational safety provided by LAFARGE. Only 4 respondents are not satisfied with the occupational safety.

HS S NA S HNS0

10

20

30

40

50

60

70

80

90

100

no of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

74

Inference:In the analysis it is shown that most of the employees except a few are satisfied with the occupational safety. So it means most of the employees are very secure about their job and very comfortable with that.

2) How would you rate your satisfaction level with regard to the following welfare measures?

a) ‘Opinion about earned leave given to respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 11 22%

Satisfactory 39 78%

Not aware -- --

Not satisfactory -- --

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis:The table shows that 78% of the respondents are satisfied with the earned leave provided to them and 22% of the respondents are highly satisfied with the earned leave.

HS S NA NS HNS0

10

20

30

40

50

60

70

80

No of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

75

Inference:

There are no respondent who is not satisfied with the earned leave. Every employee is very much satisfied with the earned leave provided to them.

b) ‘Opinion about Sick leave given to the respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 6 12%

Satisfactory 44 88%

Not aware -- --

Not satisfactory -- --

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis:

The table shows that 88% of the respondents are satisfied with the sick leave provided by the company. And none of the respondents are not satisfied with the facility. It shows that most of the respondents are satisfied with the sick leave.

HS S NA NS HNS0

10

20

30

40

50

60

70

80

90

No of respondent

percentage

76

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

Most of the respondents are satisfied with the sick leave, so it shows that LAFARGE is very liberal in giving the sick leaves and they just have to inform the company with the leave notice.

c) ‘Opinion about the paternity leave provided to the male respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 2 4%

Satisfactory 13 26%

Not aware 35 70%

Not satisfactory -- --

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis:

The table shows that 26% of the respondents are satisfied with the paternity leave provided by the company. And 70% of the respondents are unaware about this facility.

77

HS S NA NS HNS0

10

20

30

40

50

60

70

no of respondent

percentage

. HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

The male respondents are not satisfied with the paternity leave provided to them.

d) ‘Opinion about the casual leave provided to the respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 6 12%

Satisfactory 44 88%

Not aware -- --

Not satisfactory -- --

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis :

In the table it shows that 88%of respondent are satisfied with the

78

casual leave provided to them and 12 % of respondent are highly satisfied with the casual leave provided to them.

HS S NA NS HNS0

102030405060708090

no of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

None of the respondents are dissatisfied with the casual leave; this is a great achievement to the organization.

e) ‘Opinion about the medical benefits given to the respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 9 18%

Satisfactory 38 76%

Not aware -- --

Not satisfactory 3 6%

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis: In the table 76% of the respondents are satisfied with the medical

79

benefits provided to them. And 6% of the respondents are not satisfied with the medical benefits given to them.

HS S NA NS HNS0

10

20

30

40

50

60

70

80

no of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference: As medical benefits are very important to any employee in the organization, the employer has to give any medical benefits, which is required to be given to them. The company has to just verify the dissatisfied employees with the medical benefits.

f) ‘Opinion about leave travel allowance provided to the respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 1 12%

Satisfactory 28 56%

Not aware 3 6%

Not satisfactory 18 36%

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

80

Analysis: In the table it is shown that 56% of the respondents are satisfied with the leave travel allowance provided to them, but 36% of the respondents are not satisfied with the allowance provided to them and 6% of the respondents are not aware of this allowance.

HS S NA NS HNA0

10

20

30

40

50

60

No of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

The analysis shows that most of the respondents are really satisfied with the allowance and this is a very good allowance and it motivates the employees to go out of station and take a break from the work pressure and can work better in the future.

g) ‘The opinion regarding the facilities provided to the physically handicapped respondent’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory -- --

Satisfactory 1 2%

Not aware 49 98%

Not satisfactory -- --

Highly not satisfactory -- --

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Total 50 100%

Source —Primary data

Analysis: In the table it is shown that 98% of the respondents are not aware of the facilities provided to physically handicapped, only 2% of the respondents are satisfied with the facilities given to them.

Inference:

As there is only one person who has agreed that they are satisfied, may be they are physically handicapped and they are satisfied with the facilities provided to them.

There are no charts shown for this data as it is understood from the above table.

h) ‘Opinion about the personal accident scheme’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 7 14%

Satisfactory 37 74%

Not aware 1 2%

Not satisfactory 5 10%

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis: In the table it is shown that 74% of the respondents are satisfied with the accident scheme given to them and 10% of the respondents are not satisfied with the scheme provided to them.

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HS S NA NS HNS0

10

20

30

40

50

60

70

80

No of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

As the analysis shows that nearly 88% of the respondents are very much satisfied with the personal accident scheme, which is really good to the organization as it helps the employees during their bad times.

3) How would you rate your satisfaction level with regard to the following extra-mural facilities provided by LAFARGE?

a) ‘opinion regarding the social insurance’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 7 14%

Satisfactory 38 76%

Not aware -- --

Not satisfactory 5 10%

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

Analysis: In the table, it shows that 76% of the respondents are satisfied with

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the social insurance provided to the employees and 10% of the respondents are not satisfied with the social insurance given to them.

HS S NA NS HNS0

10

20

30

40

50

60

70

80

no of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

The analysis shows that more than 80% of the workers are satisfied with the social insurance provided to them.

b) ‘Opinion regarding the recreation facilities’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory -- --

Satisfactory 34 64%

Not aware 9 18%

Not satisfactory 6 12%

Highly not satisfactory 1 2%

Total 50 100%

Source —Primary data

Analysis:

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In the table, it shows that 68% of the respondents are satisfied with the recreation facility provided to the employees and 12% of the respondents are not satisfied with the recreation facility given to them.

HS S NA NS HNS0

10

20

30

40

50

60

70

No of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

The analysis shows that more than 80% of the workers are satisfied with the recreation facility provided to them.

4) How would you rate your satisfaction level with regard to the following non-statutory welfare measures provided by LAFARGE?

a) ‘Opinion regarding the education facilities provided to the respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 2 4%

Satisfactory 40 80%

Not aware -- --

Not satisfactory 6 12%

Highly not satisfactory 2 4%

Total 50 100%

Source —Primary data

85

Analysis In the table it shows 80% of the respondents are satisfied with the education facilities to the respondent’s children.

HS S NA NS HNS0

10

20

30

40

50

60

70

80

No of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference: From the analysis it shows that most of the employees are satisfied with the education facilities provided to the respondents. It will be of great help for the respondents but the company will give only the standard allowance for education facilities that is the reason 12% of the employees are not satisfied.

b) ) ‘Opinion regarding the vehicle benifts provided to the respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 5 10%

Satisfactory 35 70%

Not aware -- --

Not satisfactory 6 12%

Highly not satisfactory 4 8%

Total 50 100%

Source —Primary data

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Analysis In the table it shows 70% of the respondents are satisfied with the vehicle benefits provided by the organization.

HS S NA NS HNS0

10

20

30

40

50

60

70

No of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference: From the analysis it shows that most of the employees are satisfied with the vehicle benefits provided to the respondents

c) ) ‘Opinion regarding the house building advance provided to the respondents’

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 6 12%

Satisfactory 38 76%

Not aware -- --

Not satisfactory 4 8%

Highly not satisfactory 2 4%

Total 50 100%

Source —Primary data

Analysis

In the table it shows 76% of the respondents are satisfied with the

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house building allowance provided by the organization.

HS S NA NS HNS0

10

20

30

40

50

60

70

80

no of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

From the analysis it shows that most of the employees are satisfied with the house building advance provided to the respondents.

5) How would you rate the overall employee welfare measures and benefits provided by the company?

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory -- --

Satisfactory 48 96%

Not aware -- --

Not satisfactory 2 4%

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

88

Analysis:

In the table it is shown that 96% of the respondents are satisfied with the over all employee welfare in the company.

HS S NA NS HNS0

102030405060708090

100

No of respondents

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

Out of 50 respondents only 2 respondents are not completely satisfied with welfare measures provided to them.

6) How would you rate the relationship with the supervisor and to the other workers?

Satisfaction level Number of

respondents

Percentage

Highly Satisfactory 20 40%

Satisfactory 30 60%

Not aware -- --

Not satisfactory -- --

Highly not satisfactory -- --

Total 50 100%

Source —Primary data

89

Analysis:

The table shows that 60% of the respondents are satisfied with the relationship between their employees and supervisors, and 40% of the respondents are highly satisfied.

HS S NA NS HNS0

10

20

30

40

50

60

no of respondent

percentage

HS-highly satisfied S- satisfied NA- not aware NS-not satisfied HNS- highly not satisfied

Inference:

This analysis shows that all the employees in the organization are satisfied with their employees as well as their supervisors.

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CHAPTER – 3

91

FINDINGS, CONCLUSIONS AND RECOMMENDATION

The study was conducted at LAFARGE to make the analysis of the statutory and

non-statutory employee welfare measures provided by the company. A schedule

was administered to the respondents comprising of 50 employees of the company.

The data collected was tabulated and analyzed. On evaluation of the primary data

collected from the respondents the following findings, conclusion and

recommendation are recorded.

FINDINGS

LAFARGE has a vast infrastructure to support all needs.

LAFARGE is one of the dynamic manufacturing industries.

Most of the employees are rewarded or promoted only according to their performance

and very few are promoted through seniority based rewards.

Nearly 50% of the respondents are not at all satisfied with the rest room facilities

provided to them. The company has to provide a better rest room facility.

Most of the respondents are satisfied with the drinking water facility provided by the

company.

The medical and first aid facility provided should also be improved in a great extent.

The respondents are very well satisfied with the casual leave, sick leave and earned leave

provided by the organization.

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Majority of the respondents are satisfied with working environment health, security,

safety, welfare measures and leave and holidays facilities.

Workers are satisfied with the vehicle benefits and it should be improved a little.

Most of the respondents are satisfied with the leave travel allowance but there are some

employees who are not satisfied.

Most of the respondents are satisfied with the personal accident scheme provided to them.

Most of the employees are satisfied with the over all employee welfare provided to them.

Though they are not satisfied with some of the facilities provided to them but mainly they

are looking for job security which they are provided

All the employees are satisfied with the relationship between the employees and their

supervisors

CONCLUSION

Employee welfare refers to taking care of the well-being of the workers by

employers, trade unions and by the governmental and non-governmental agencies.

Recognizing the unique place of the worker in the society and doing good for him/her

retaining and motivating employees, minimizing social evils, and building up the local

reputation of the company are the arguments in favor of employee welfare.

The project was basically done to find out the present satisfaction level of the

employees regarding the welfare measures provided to them, with this also to make the

company aware about the employee’s dissatisfaction with certain welfare measures and give

them appropriate suggestions to it.

The feedback on the subject matter when evaluated threw light on the level of

satisfaction of the company is more then average and maintained according to the industrial

specifications.

Doing my project with LAFARGE has been a great experience as I got to learn

the new welfare measures which are in the corporate field and also the way the government

firm works

Finally I would like to conclude hoping LAFARGE to excel in the years to come

and to reach greater heights and to have an entrenched presence in the global market.

93

RECOMMENDATION

Management should reduce the work load of the employees. .

It will be more effective if the management take the steps to introduce

suggestion scheme system for the employees.

The training and instructions provided to the employees on occupational

health and safety aspects should be enhanced.

The quality of education should be improved and better educational

amenities are to be provided.

To enhance the provision for the rest rooms and lunch rooms with clean

ambience.

Some employees are not satisfied with the promotion policy. They

complained against the diplomatic behavior of their seniors. Thus they

suggest that promotions should be given only in genuine and fair cases and

not on the basis of references of the respective heads or on the basis of liking

towards any specific employee.

Plant safety inspection is essentially needed for the safety of employees.

94

REFERENCES

To give a complete shape of summer project report, the research has gone through the following

books, journals and websites.

BOOK NAME: Human Resource Management.

AUTHOR: P Subba Rao & V.S.R Rao.

PUBLISHER: Konark Publishers.

FINDINGS: Researcher mainly referred this book because it provides:

It enables the researcher to know about HR.

BOOK NAME: Aspects of Employee Welfare.

AUTHOR: A.N. Sharma.

PUBLISHER: Himalaya Publications Bombay.

FINDINGS: It enables the researcher to know about the Welfare measures of

Employees and benefits provided to them.

95

BIBLIOGRAPHY

1. Human resource and Personnel Management

By K. Aswathappa

Published by Tata McGraw-Hill Publishing Company limited (2005)

2. Human Resource Management

By V S P Rao

Published by Excel Books (2000)

3. Personnel Management & Industrial Relations

By Prof. P. C Tripathi

Published by Sultan Chand & Sons (1991)

The website for Employee Welfare

1. www.goggle.com

2. www.yahoo.com

3. employee welfare.doc

4. employee welfare.pdf

5. employee welfare.ppt

LAFARGE (documents)-

96

1. Brochure of LAFARGE.

2. Internet website : www.lafarge

ANNEXURE

Analysis of Employee Welfare in Lafarge

Dear sir/madam

I HONEY MANDIL, pursuing my MBA from ITM. I am

conducting a study on the analysis of employee welfare at Lafarge.

Can u please spare few min to answer the following questions?

1) How would you rate your satisfaction level with regard to the following welfare measures?

a. Highly Satisfied [HS] b. Satisfied [S] c. Not Aware [NA]d. Not Satisfied [NS] e. Highly Not Satisfied [HNS]

HS S NA NS HNS

Rest Rooms [ ] [ ] [ ] [ ] [ ] Drinking water facility [ ] [ ] [ ] [ ] [ ]

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Opinion regarding Medical and First aid facilities [ ] [ ] [ ] [ ] [ ]

Opinion regarding food and other services provided by canteen [ ] [ ] [ ] [ ] [ ]

Crèche [ ] [ ] [ ] [ ] [ ] Occupational Safety [ ] [ ] [ ] [ ] [ ]

2) How would you rate your satisfaction level with regard to the following welfare measures?

a. Highly Satisfied [HS] b. Satisfied [S] c. Not Aware [NA]

d. Not Satisfied [NS] e. Highly Not Satisfied [HNS]

HS S NA NS HNS

Earned leave [ ] [ ] [ ] [ ] [ ]

Sick leave [ ] [ ] [ ] [ ] [ ]

Paternity leave [ ] [ ] [ ] [ ] [ ]

Casual leave [ ] [ ] [ ] [ ] [ ]

Medical benefits [ ] [ ] [ ] [ ] [ ]

Leave travel allowance [ ] [ ] [ ] [ ] [ ]

Physically handicapped [ ] [ ] [ ] [ ] [ ]

Personal accident scheme [ ] [ ] [ ] [ ] [ ]

3) How would you rate your satisfaction level with regard to the following extra-mural facilities provided by lafarge?

a. Highly Satisfied [HS] b. Satisfied [S] c. Not Aware [NA]d. Not Satisfied [NS] e. Highly Not Satisfied [HNS]

98

HS S NA NS HNS

Social Insurance

(Gratuity, Pension, PF etc) [ ] [ ] [ ] [ ] [ ]

Recreation facilities [ ] [ ] [ ] [ ] [ ]

4) How would you rate your satisfaction level with regard to the following non-statutory welfare measures provided by lafarge?

a. Highly Satisfied [HS] b. Satisfied [S] c. Not Aware [NA]d. Not Satisfied [NS] e. Highly Not Satisfied [HNS]

HS S NA NS HNS

Vehicle benefits [ ] [ ] [ ] [ ] [ ]

House building advance [ ] [ ] [ ] [ ] [ ]

Education allowance [ ] [ ] [ ] [ ] [ ]

5) How would you rate the overall employee welfare measures and benefits provided by the company?

I. Highly Satisfactory [ ] II. Satisfactory [ ] III Not Aware [ ]

IV. Not Satisfactory [ ] V. Highly Not Satisfactory [ ]

6) How would you rate the relationship with the supervisor and to the other workers?

99

I. Highly Satisfied [ ] II. Satisfied [ ] III. Not Aware [ ]

IV. Not Satisfied [ ] V. Highly Not Satisfied [ ]

100