Upasna Project

PROJECT REPORT

ON

A STUDY ON HR AND IR POLICIES FOR

WORKMEN

IN

A REPORT SUBMITTED IN THE PARTIAL FULFILLMENT FOR

THE REQUIREMENT OF DEGREE OF BBA PROGRAM OF

GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

Submitted Under the Submitted by:-

Guidance of: - Upasna

Mrs. Bharti MBA 3rd Semester

Roll No.-0451483908

Maharaja Agrasen Institute of technology

PREFACE

This project report is all about the HR and IR policies as implemented in Escorts limited.

In the project the following have been included to understand the board policies of

the Company, the Organizational structure of HR and IR department, Company’s

recruitment and selection policy, Performance appraisal system of company, Training and

Development policy of the company and Current IR issues in company.

An attempt has been made to observe Company’s health and safety policy,

Company’s attendance and leave system, Welfare item, and Suggestion scheme, which

play a vital part in companies HR Policy.

During the research, Study of employees union and its functioning; the disciplinary

procedures and how labour cases are handled in the company came across and made the

training a wonderful experience.

ACKNOWLEDGEMENTACKNOWLEDGEMENT

I Upasna Chandna, student of M.B.A. ( GGS Indraprastha University) did my summer

training in India’s renowned company “Escorts Limited”, I am grateful to Escorts

Limited for giving me a chance to complete my project.

I am thankful to Mr. Rajesh Goyal, Personnel Manager Corporate IR for his invaluable

support, guidance and suggestions.

I would also like to thank Mrs. Bharti , faculty guide of Maharaja Agrasen Institute of

Technology for her valuable suggestions and cooperation.

Also I wish to thank all the Divisional Heads, the whole team of Corporate IR, workmen

and all those who helped me in completing my project successfully.

UPASNA

INDEX

CONTENTS

PREFACE

ACKNOWLEDGEMENT

CERTIFICATE

EXCEUTIVE SUMMARY

CHAPTER-1

COMPANY PROFILE

o MAIN TEXT

O HRD MODEL

O ORGANSATION CHART

CHAPTER-2

INTRODUCTION TO HR AND IR POLICIES

o MANPOWER PLANNING

o RECRUITMENT

o TRAINING AND DEVELOPMENT

o COMPENSATION

o PAYROLL

o PERFORMANCE MANAGEMENT

o DISIPLINARY PROCEDURE

o WELFARE OF EMPLOYEES

o HEALTH AND SAFETY

o SUGGESTION SCHEME

o INDUSTRIAL RELATION

CHAPTER-3

RESEACRCH METHDOLOGY

o CONCEPT OF RESEACH

o RESEARCH OBJECTIVES

o RESEARCH DESIGN

o SAMPLE DESIGN

o DATA COLLECTION

o SCOPE OF THE STUDY

o LIMITATIONS

CHAPTER-4

DATA ANALYSIS AND FINDINGS

OLIST OF TABLES

O FINDINGS

OSUGGESTIONS

ANNEXURE

BIBLOGRAPHY

SAMPLE QUESTION PAPER

EXECUTIVE SUMMARY

WHY I HAVE CHOSEN HR DEPARTMENT?

I have chosen HR DEPARTMENT for my summer training project because I was

very keen to learn about the Functioning of HR Department and its role in recruiting and

controlling the employees in the company.

HR DEPARTMENT OR HUMAN RESOURCE DEPARTMENT is concerned with

the people at work and with their relationships within the organisation. Human resources

of an organisation are the product of their biological inheritance and interactions with the

environment. Human resources are heterogeneous. Each has his own physical and

psychological traits. Most of the problems of an organisation are people-related

problems. These problems arise from the mistaken belief that people are alike and they

can be treated identically. In order to make effective use of its human resources, an

organisation must recognise and pay attention to differences between individuals so that

each person can maximise his/her potential.

It is the job of HR DEPARTMENT to select “the right person for the right job”.

The job of this department doesn’t ends here after selecting right person from number of

applicants they have to see the training needs of employees and have to arrange for

training. They have to complete record of their performance so that they can give

feedback to employee to keep their morale high so that they can perform to their level

best.

The resources of men, money, materials and machinery are collected, coordinated

and utilised through people. They need to be united into a team. All the activities of an

organisation are initiated and completed by the persons who make up the organisation.

Therefore, the people are most significant resource of any organisation. This resource is

called human resource and it is the important factor of production. According to L.F.

Urwick,”business houses are made or broken in the long run not by markets or capital,

patents or equipment but by men.” Of all the resources manpower is the only resource

which does not depreciate, with the passage of time.

CHAPTER-1

COMPANY

PROFILE

INTRODUCTIONINTRODUCTION

ESCORTS – A PROFILE

Two brothers made a small beginning of dynamic enterprise in 1944, Late Shri.

YUDI NANDA and Shri. HARI NANDA with little else but guts, imagination and a

determined will as their main capital.

They created ESCORTS in pre-partition Lahore, lost everything, and then began all over

again in newly independent India, built up the company environment far industry-friendly.

The foundation of Escorts limited was laid in the formation of Escorts (Agents) ltd., on 17 th

October 1944 and Escort (Agriculture and Machines) ltd. In 1948, these two were later

merged in 1953 to form Escort Agents Pvt. Limited. The company’s incorporation in its

present name, Escort Ltd. was effected on 21 December 1959.

Having started from initially as a franchise for wasting house domestic appliances, Escort

has come a long way in manufacturing and marketing a range of products. It has pioneered

farm mechanization in India through import and distribution of agriculture tractors.

In five decades Escorts has grown to become one of the top industrial conglomerates in the

country. The Escort group is operating in diverse field of

1. Agri-Machinery.

2. Information and material.

3. Construction and material handling equipment.

4. Automotive and railways ancillaries

India is the largest manufacturer of tractors in the world. The tractor industry closed

FY’08 on a very positive note with 342000 units registering a growth of our 30% over

previous year. The governments focus on the agricultural economy with increased rural

lending ensuring availability of cheap finance led to the growth. Exports stood at 37700

units in FY’ 08.

Tractor industry is categorized on the basis of power delivered by the engine horse power

(hp). 40-50 hp tractors primarily used in southern & western regions due to hard soil

conditions dominate Indian market. It is followed by range of 31-40hp, which finds its

market in soft conditions & well-irrigated northern state. the tractors industry comprises

15 players, including 4 MNC’s & it led by MAHINDRA & MAHINDRA ltd, tractors &

farm equipment ltd & Punjab tractors ltd. Riding on the back of normal monsoons 7

strong rural credit growth, during april-november’07, overall tractor sales has grown by

about 14% over the corresponding period last year, to 196000 units. Backed by

government’s initiative on rural roads & better connectivity with major town & city,

increase in area under irrigation, improved agricultural performance & factors like

increment in minimum support price coupled with more emphasis on agricultural

financing (total outlay for agricultural financing which was Rs.109500 crores in FY’08

has been increased by 40% FY’07) will keep up

The momentum and industry is likely to achieve 20% growth in the current

financial year. Exports have also registered growth of around 60% during the first eight

months of FY’09 to 19300 units as compared to 12200 units in the same period last year.

Exports are expected to be mainly driven by multinational tractors manufacturers who

have made Indian an export hub for outsourcing of aggregates and tractors .Hence, the

growth in exports will depend on the level of outsourcing by companies like L&T john

degree and new Holland tractors and some domestic manufacturers like Escorts &

Mahindra & Mahindra, who have adopted aggressive strategy for overseas markets.

COMPETITORS

Branded Competitors Unbranded competitors

COMPETITORS IN THE MARKET

Kirloskar -Vidhata

Ruston -Harvert

Lay land -Atulshakti

HMT -Ajay bright

Eicher -Bharat

Mahindra&Mahindra -Prakash

-Field Marshall

MAIN TEXT

The area I have studied includes selection procedure, workmen appraisal, training and

development programs and safety policy of Escort Ltd. I have tried my best to compile all

the information, which I received from my guide various other sources during the project

in Escorts.

HRD MODEL

s

EMPLOYEERECRUITMENT & SELECTION

*MAN POWER PLANING

INDUCTION *INTRODUCTION*AWARENESS OF BUSINESS

MAINTANCE DEVELOPMENT *RECORD *PERFORMANCE APPRAISAL *EMPLOYEE REWARD

*EMPLOYEE TRAINING & DEVELOPMENT *POTENTIAL APPRAISAL*CAREER PLANNING

EMPLOYEE SEPRATION *RETIREMENT

RESTART TO FILL THE MANPOWER GAP.

ORGANIZATION CHART

ESCORTS LIMITED

ED: Engineering division.

AMG: Agri machinery group.

ECEL: Escorts construction limited.

ASP: Auto suspension product

RED: Railway Equipment Division.

KMC: Knowledge Management Centre.

CHD: Crankshaft and Hydraulic Division.

NIKHIL NANDA COO &Executive

Director

AMGA.K Chadda

EDK.Havaldar

ECELKamal Bali

ASP/REDG.P Malhotra

AMG-Head personalRajesh Goyal

Group VP.HR/IRA venkat madhavan

CFOShailendar Tandon

C.G.M (Corp. IR) R.K Chilana

ECELNarendera Arya

AMGA.K Chadda

CORPORATE HR/IR

Chief General Manager R.K.Chilana

Senior SecretaryS.S.Goyel

Chief Manager S.P.Srivastva

Senior Manager (IR)J.K.Banga

Asst. ManagerShahid Raza

Asst. manager B.R.Bhatia

StenoBeena

ExecutiveR.S.parmar

PeonDhian Singh

SBU’s/Division personnel & head

Group VP.HR/IRA Venkat Madhavan

CHAPTER-

3AN OVERVIEW

OF THE

CONCEPT OF

INDUSTRIAL

RELATIONS

INDUSTRIAL RELATIONS

CONCEPT

The term “industrial relations” is used to denote the collective relationship

between the management and the workers. The two terms labour-management relations

and employer-employee relations are synonymously used.

In today’s context, Industrial Relations constitute one of the most delicate and

complex problems of modern Industrial Society. With growing prosperity and rising

wages, workers have gained higher living wages, more education, sophistication and

generally greater awareness about their rights and duties. Therefore, the creation and

maintenance of good relations between the workers, their Union & Management is the

very basis on which the development of an Industrial Democracy depends. Good and

Healthy Industrial relations means a situation when requirements of management and the

work-force are discussed between them in a spirit of mutual trust and confidence and

without causing friction. Apart from the Union, workers and the Management, the third

important character governing Industrial relations/peace is the State who through various

labour legislations works as the vital controlling body of the prosperity and growth of

Industry & the work-force.

According to the ILO(International labour organisation), industrial relations

comprise relationships between the State on the one hand and the employers’ and

employees’ organisations on the other hand and the relationship among the occupational

organisations themselves. The ILO uses the term to denote such matters as freedom of

association and protection of the right to organise, the right of collective bargaining,

collective agreements, conciliation and arbitration and the machinery for cooperation

between the authorities and the occupational organisations at various levels of the

economy.

The state tries to regulate the relationship between the labour and management

and keeps an eye on both groups. This relationship is maintained through the

appointment of labour courts, industrial tribunals, wage boards, investigation and enquiry

committees, etc, which lay down principles, norms and rules, regulations and awards

which are placed in the statute books.

PARTIES TO INDUSTRIAL RELATIONS

Three main parties or outlets are directly involved in industrial

relations are:

1. Employers and their organisations.

2. Workers and their organisations.

3. Government

1. Employers and their organisations : -The employers are a very important

variable in industrial relations. They provide employment to workers and

try to regulate their behaviour for getting high productivity from them.

Industrial unrest generally arises when the employers’ demand from the

workers is very high and they offer low economic and other benefits to the

workers. In order to increase their bargaining power, employers in several

industries have organised employers’ associations. These associations put

pressure on the trade unions and the government.

2. Workers and their organisations :- The personal characteristics of the

workers, their culture, educational attainments qualifications, skills,

attitude towards work, etc. play an important role in industrial relations.

Workers’ organisations, known as trade unions, are political institutions.

Trade unions are formed for safeguarding the economic and social

interests of the workers. They put pressure on the management for

achievement of these objectives.

3. Government :- The Government or the state exerts an important influence

on the industrial relations through such measures as providing

employment, intervening in working relationships and regulating wages,

bonus and working conditions through various laws relating to labour. The

government keeps an eye both on the trade unions and employers’

organisations to regulate their behaviour in the interests of the nation.

TWO DOMINANT ASPECTS OF INDUSTRIAL

RELATIONS

The two dominant aspects of industrial relations are as follows:-

Cooperation : - The dynamics of cooperation lie in the recognition of a sphere

of common interest. Cooperation between union and management the two

actors in the industrial relations drama, differing in economic power, wealth

and education, depends primarily on the ability and willingness to make

contacts at points of mutual concern. In the final analysis, cooperation is a

learned characteristic and does not come easily to individuals and groups

especially within the structure of business.

Conflict :- Generally some degree of conflict between the management and the

union is taken as inevitable. Conflict is essential to survival of both

management and the union, and is not always bad and has certain constructive

aspects also. But recurring conflict needs to be channelized along the least

destructive lines. And for this, conflict resolution measures-both voluntary

and statutory- must be taken for good industrial relations to be prevail and

industrial harmony to be achieved.

OBJECTIVES AND SIGNIFICANCE OF INDUSTRIAL

RELATIONS

1. Good labour-management relations depend on the employers and trade

unions being able to deal with their mutual problems freely, independently

and responsibly.

2. The trade unions and employers and their organisations are desirous of

resolving their problems through collective bargaining, though in resolving

such problems the assistance of appropriate government agencies might be

necessary in public interest. Collective bargaining is thus a corner stone of

good relations and, hence, the legislative framework of industrial relations

should facilitate the maximum use of the process of mutual accommodation.

3. The workers’ and the employers’ organisations should be desirous of

associating with government agencies in consideration of general, public,

social and economic measures affecting employers’ and workers’ relations.

4. To check industrial conflicts and minimise the occurrence of strikes, lockouts

and gheraos.

5. To minimise labour turnover and absenteeism by providing job satisfaction to

the workers and increasing their morale.

6. To establish and develop industrial democracy based on workers’ partnership

in management of industry.

7. To facilitate government control over industries in regulating production and

industrial relations

Significance of good industrial relations can be summed up in the following

points:-

Industrial peace

Higher productivity

Industrial democracy

Collective bargaining

Fair benefits to workers

Higher morale

Facilitation of change

FUNCTIONS OF AN INDUSTRIAL RELATIONS OFFICER

Administration, including over-all organization and co-ordination of industrial

relation policies and programmes.

Liaison between outside groups and personnel office as well as with various levels of

management.

Legal, including drafting regulations, rules, law or orders, and construction and

interpretation.

Position classification, including over-all direction of job-analysis, salary or wages

administration, wage surveys, and pay schedules.

Recruitment and employment of employees.

Employment testing, including intelligence tests, mechanical aptitude tests,

achievement tests, etc.

Placement, including apprentices, production workers, foremen and executives.

Performance report or merit rating.

Employee counselling on all types of personnel problems such as educational

vocational, health, behaviour, etc.

Medical and health services.

Safety services, including first aid training.

Group activities such as group health insurance, housing, production committees.

Employee relations, especially collective bargaining with representatives and settling

grievances.

Public relations

Research in such field as occupational trends, employee attitudes, and analysis of

turnover.

Employee record for all purposes.

Controls through operation surveys, fiscal research and analysis.

Benefit, retirement, and pension programmes.

PREVAILING INDIAN TRADE UNION SITUATION

The Trade Union movement in India continues to be under pressure from the New Economic Policies & attitudes, ushered by structural adjustment programme initiated in July 19991.The situation has been made grimmer by the New World Trade Order negotiated under the Uruguay Round of GATT. The new GATT deal will lead to joblessness in many domestic industries especially those affected by imports (both in Developing and Developed countries), besides raising prices of basic food stuff, medicines and other essential goods & services.

Trade Unions in India have however put up strong counter pressure which has succeeded in Government acknowledging the need for social safety net for those directly affected by structural changes. There is much need for extending the coverage of the existing (and proposed) safety nets and involvement of Trade Unions. We have to ensure that the Government actually devotes adequate resources towards social and economic security. Whether trade unions succeed or not, remains to be seen; the future is uncertain. Trade Union Unity and independence from political parties will go a long way in strengthening the labour movement.

There were 52016 registered trade unions in 1990. This organized sector comprises about 12-13% of the total workforce of about 350 million. The presence of such large unorganized sectorcontinues to pose the biggest challenge

to the Central TU's .

It is of paramount importance to strengthen the trade union movement through:-

forging Trade Union Unity expanding into unorganized sectors improving trade union communications increasing the information collection activities an expansion of education and Training activities integrating women workers into trade unions

CHAPTER-

5

INDUSTRIAL

RELATIONS

IN ESCORTS

LTD.

INDUSTRIAL RELATIONS POLICY IN ESCORTS

We shall continuously strive to establish healthy industrial relations, rejuvenate

positive Discipline, harness the competence of our workforce and support the business so

that we can position ourselves as the marketer leader in a competitive environment.

As a responsible corporate, we shall stand committed to the welfare of the

employees, their families and providing better amenities, environment and winning the

confidence of our employee.

We shall respect their dignity, recognize their contribution through an objective

methodology, and encourage their overall development.

We will operate on the principles of professionalism; uphold the core values and

the highest tradition of the company.

We will work towards creating an exemplary Management-labour relationship

model, which will set a new benchmark in productivity, excellence, quality consciousness

of our products.

OBJECTIVES OF INDUSTRIAL RELATIONS POLICY IN ESCORTS:

To develop and maintain harmonious relations between management and labour

so essential for higher productivity of labour and industrial progress in the

country.

To safeguard the interest of labour and management by securing the highest

level of mutual understanding and goodwill between all sections in industry.

To establish and maintain industrial democracy based on the participation of

labour in the management and gains of industry, so that the personality of every

individual is fully recognised and developed.

To avoid all forms of industrial conflict so as to ensure industrial peace by

providing better working living standards to workers.

To rise productivity in an era of full employment by reducing the tendency of

higher labour turnover and absenteeism.

To bring about Government control over such industrial units which are running

at loses for protecting employment or where production needs to be regulated in

public interest.

To ensure a healthy and balanced social order through recognition of human

rights in industry and adaptation of complex social relationships to the

advancements of technology.

KEY ROLE OF CORPORATE INDUSTRIAL

RELATIONS IN ESCORTS LTD.

Lead, facilitate and drive group Industrial relation.

Strategic & Advisory support to all group companies and SBUs.

Corporate excellence through reinforcement of positive disciplinary matter.

Maintenance of state of orderliness & handling disciplinary matter.

Influencing positive work environment & strengthening positive workmen

leadership for prosperity and growth of the companies.

Labour matters/ litigations.

Uniform personnel policies of workmen across group companies.

PR management/Liaison with govt and local administration

Escorts employee welfare trusts.

Strategic & advisory role on workman training education and development

MAJOR RESPONSIBILITIES OF AN IR OFFICER IN ESCORTS

LTD.

Maintain discipline

Support to line management.

Employees Development.

Employees Benefits and Welfare.

Collective Bargaining, Compensation.

Statutory Compliances.

Labour and Service ease.

PR and Environment Management

Continuous interaction/counselling with central body of the union and sharing

information of business requirement, competition and market behaviour monthly

meetings to address the IR issues.

Regular weekly meeting with plant/div personnel heads for strategic decision and

scanning state of orderliness, case of indiscipline.

Provide support to operational management, BHs and group VP-HR &IR to

strategize structural re-adjustment and implement the change.

Facilitate & design explicit verbal &non-verbal internal/external communications

on all organizational matters & policies.

Conduct industrial survey and collect data on wage compensation system, work

practices &personnel policies in region/similar industries.

Introduce time attendance and gate control system.

Provide Behavioural, Functional and technical training to the employees.

SALIENT FEATURES OF INDUSTRIAL RELATIONS

IN ESCORTS LTD.

WAGE SETTLEMENT

Wage settlements are done after every 3 years in normal conditions. The settlements done

so far are the settlement of 1977, 1981, 1984, 1987, 1990, 1994, 1997, 2000 & 2007. This

current settlement has been arrived at after six years because of financial constrains the

Company has gone through during 2003 to 2006.

In September 2007 wage settlement is done in which

There is increase of Rs.4500/- which is spread in this 3 year.

Productivity increase by 30-50%

Industrial Engineering Norms implemented.

Provided with good practices like Multi-skilling, Multi-machining, Multi-staging,

Self-Inspection, self-material Handling, Self-setting, 8 hours sincere work

implemented.

Members of the union actively participate in the process of wage settlements through

negotiations and collective bargaining.

LONG SERVICE AWARD

This award is given to encourage loyalty of the workmen towards the organisation and to

reduce labour turnover. It is given in form of monetary compensation to the workmen.

Service award amount increased by Rs.1000/-. The award for 10 year of service is

received is Rs.2000/- and similarly service award for 40 year of service is Rs.8000/-

FAREWELL GIFT TO THE RETIRING WORKMEN

A worker is given a Titan wristwatch worth Rs.1100/- at the time of

retirement as a token of respect and remembrance.

EMPLOYEMENT ON COMPASSIONATE GROUNDS

On unfortunate death of a permanent employee during the course of employment,

company pay Ex-Gratia of Rs.4 lacs as a gratitude to the deceased worker to his/her

family.

In any case if the legal heir is not interested in the previously mentioned payment of

Ex-Gratia, then they employee son or daughter of deceased family, if his/her age is

between eighteen to twenty-five years.

COMMON FOOD FACILITY IN CANTEEN

It started from 1st June 2007. The purpose of the union is that it will change and

enhance cooperation and confidence, it is necessary to have a common food

canteen for manager as well as the worker with an improved fully nutritive value of

the food. It would enhance cultural integration and improve interpersonal relation at

all level in organisation.

WELFARE AND SAFETY

Welfare means seeing towards employee well being. There are various acts,

which are covered under welfare of employees:

1. Factory Act 1948

2. Employee Gratitude Act

3. Employee Provident Fund Act

There are many other acts, which are made for providing basic facility to employees at

work. HR and IR Department provide every Employee the information about these acts

and see towards it that organization follow.

SAFETY POLICY

Escorts management is of firm belief that creation of safe and healthy working conditions

and environmental protection to the employees and associates in the factory premises and

to the general public in its vicinity is important for other organizational activities to

achieve the greatest practical freedom from accident, injuries and other health hazards.

They are committed to-

Ensure compliance of all statuary requirements for maintaining safety, health and

environment standards.

Ensure safe working practises through training and education.

Prevent all injuries and property damage through continuous safety inspection and

audits.

Prevent all occupational disease and employee health hazards.

Preserve and conserve the environment.

FACILITIES AVAILABLE-

DISPENSARY

Well-equipped dispensary manned by doctors & pharmacists with modern

amenities and necessary medical facilities is available for the employees in all the plants.

An employee requiring consultation/first-aid will visit the dispensary with proper

authorization from department head/PU head. History card of each employee is available

for treatment and for consultation.

The chief medical officer conducts health check-up, awareness programs on

maintaining good health, first aid and related issues for the benefit old the employees.

AMBULANCE

The ambulance is provided for carrying ailing employees to the hospitals in case of

an emergency or an accident during duty hours.

Ambulance can be made available for emergency use of employee’s family

members in case the patient is incapacitated and unable to go by public transport.

SAFETY EQUIPMENTS

The management provides safety equipment for use while working on machines as

required under labour laws. These items include safety goggles, earmuffs, gas mask, health

tonic, kerodex, reinol (hand wash cream) etc.

MEDICAL EXAMINATION

The annual medical examination of workmen who are deployed on hazardous

operations is conducted at authorized hospitals through the company’s chief medical

officer as required under the laws.

OTHER

Safety committee meeting is held once in a month. The committee constitutes equal

no. of representatives from both workmen and management.

In Escorts Limited safety week is celebrated in the month of March from 4-10

every year. On this occasion various competitions like painting, slogan writing, and

quiz are held.

Escorts limited is awarded for longest no accident period in heavy engineering few

years back.

Welfare items are being streamlined and uniform policy is being implemented

across the organisation. These items are provided to workers stands withdrawn and

a revised list of welfare items. The costs of the items are already have been taken

into account.

Safety items are kept at a designated place in the department and all workmen are

allowed to use any of the safety items without exception.

SUGGESTION SCHEME

OBJECTIVE

To encourage and synchronize mental and emotional involvement with physical

involvement to unleash employees creative and innovative power for continuous

improvement.

Making employees feel that thinking is not the exclusive prerogative of a select

group in the management cadre & ideas are nobody’s property. They belong to

whoever conceives & express them.

Making employees realize that they are not merely employees to churn out fixed

output but form an integral part of the organization and the organization firmly

believes in their total participation for progress.

To accept, recognize and reward their creative and innovative contribution.

OPERATING STRUCTURE

Chairperson – Suggestion committee (plant wise and R&D)

Members – Suggestion committee (plant wise and R&D)

Plant/R&D Coordinator

PU Coordinator

Coordinator (Dept./cell/section wise)

AMG Coordinator (Central Coordinator)

WORKING SYSTEM OF THE SCHEME

The suggestion scheme will be managed by coordinators in their respective

PU/Departments for all day-to-day activities. They will receive suggestions from

the committees of their respective area and organize disposition as per disposition

process.

PU Head/Dep’t will appoint the PU Coordinator.

Head in consultation with plant coordinator/AMG Coordinator with a view that

each module/Dept. has at least one coordinator and not more than 50 employees are

represented by him in the suggestion scheme.

The coordination among functional coordinators, suggestion committee member

and chairs for various activities to successfully manage and improve suggestion

scheme will be done by the central coordinator of the suggestion scheme.

ELIGIBILITY CRITERIA

All suggestions, which lead to one of the following, would be acceptable for further

evaluation:

Cost saving

Quality improvement

Productivity improvement

Scrap and rework reduction/elimination

Improvement in product design

Reduction in machine break-down time

Saving energy

Better safety

Improvement in house keeping

Wastage reduction/elimination

Rationalization /simplification

Sales improvement

Ease of serviceability

SUGGESTION DISPOSITION PROCESS

1. Receipt of suggestion.

2. Acknowledgement to suggestions through duplicate copy of suggestion form

and issuance of participation gift after confirming the eligibility criteria and

fair chance to acceptance and implementation.

3. Recording in computer.

4. Study for feasibility.

5. Accept, if idea is under eligibility criteria, Reject, if not.

6. Implement with the involvement and help of suggestion

7. Calculation of awards as per point rating system and seek concurrence from

approving authority.

8. Forward the details of award to AMG coordinator.

9. Distribution of suggestions award.

UNION AND ITS HISTORY

Escorts have single internal union. All Escorts Employee union was formed in

1977. Union elects its representatives through secret ballot after every 2 years.

It is affiliated with HIND MAZDOOR SABHA. The Union through a process of

Collective bargaining negotiates Wage settlements after every 3 years. The settlements

done so far are the settlement of 1977, 1981, 1983, 1987, 1990, 1994,1997, 2000 & 2007.

This current settlement has been arrived at after six years because of financial constrains

the Company has gone through during 2003 to 2006. The Company has also faced major

strike during the whole period of Union history in the year 1977, 1984, 1998, and 2001.

The current Wage Settlement was done in Sep 2007. In this wage settlement the

total increase spread in 3 year is Rs.4500/-

Present union is positive and supportive union, which understand business requirements.

Present union has 22 elected workmen representatives.

The president of the union is Mr. S D Tyagi. He is a very seasoned leader and has a vital

role in growth & development of employee and Industry. He is working in Escort

Company for last 25 years.

Today’s Company position

. The Escorts currently do their business in

Agri. Machinery Group (AMG).

Automotive and railways ancillaries (RED)

Construction and material handling equipment (ECEL).

Company’s overall productivity is improving continuously, but ASP business is still not

showing productive growth. HR and IR team working on it to find the solution of this

problem.

ABOUT UNION

Name of Union: All Escorts Employees union.

Address: 28-29, NH-1,

Neelam Chowk

Faridabad,

Haryana.

Political Affiliation: Hind Mazdoor Sabha

Objective: -To protect the interest of workforce.

-Keep an eye on management’s

functioning.

-Act as sole collective

bargaining agent for their member.

Union’s Strength: 10000 members

Election is held after every 2 years and the executive body is constituted which negotiate

with management on issues related to workers

HIND MAZDOOR SABHA

Hind Mazdoor Sabha (HMS) was established in the year1948. It is a centre of trade unions who believe in independence from political parties, including the government in the trade union work. This does not mean HMS is “Apolitical”, but signifies its freedom from political control. COMPOSITION HMS has a 56 member Working Committee, including Office Bearers, who are elected in the Biennial Conferences of HMS. Sh. Manohar Kotwal is the President and Sh. Umraomal Purohit is General Secretary, who is the Executive head. HMS currently has 16 Industrial Federations.

AFFILIATIONIn 1949 HMS became a founding member of the ICFTU which is International confederation of free trade unions .Currently, it is affiliated with the International Trade Union Confederation. The International Trade Union Confederation (ITUC) is the world's largest trade union federation. It was formed on November 1, 2006 out of the merger of the International Confederation of Free Trade Unions (ICFTU) and the World Confederation of Labour (WCL). The Founding Congress of the ITUC was held in Vienna and was preceded by the dissolution congresses of both the ICFTU and the WCL.

HMS is also a member of SARTUC - the South Asia Regional Trade Union Council, addressing the SAARC Countries. MEMBERSHIP

It has 4.5 million workmen as its members. Female membership is about 15%; over 2300 trade unions are affiliated to HMS. Major unions are the Railway Trade Unions all over India, Transport & Dock Workers Unions in all the 10 major ports, Air India Employees, Plantations in West Bengal and Kerala & Tamil Nadu, Coal, Textiles, Steel and Engineering, Forest Product workers, Chemicals, Industry, Seafarers, Electricity etc.

CHAPTER -3

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also define

research as a scientific & systematic search for pertinent information on specific tools. It

is an act of scientific investigation. The Advanced Learners Dictionary of Current

English lays down the meaning of research as “A careful investigation or enquiry

especially through search for new facts in any branch of knowledge”. Every research

must have a particular methodology, through which it’s easy to define what the problem

actually is & how can it be solved.

Thus, Research Methodology is a way to systematically solve the problem.

The main steps involved in the research process are:

o Defining the Research Problem

o Review of the related Literature

o Formulation of Hypothesis

o Research Design

o Collection of Data

o Analysis of Data

o Interpretation & Report

RESEARCH METHODOLOGY

Definition

Scope of study

Type of research

Type of data

About Questionnaires

RESEARCH

Research comprises of defining and redefining problems, formulating hypothesis

or suggested solutions; making deductions and reaching conclusions; and at last carefully

testing the conclusions to determine whether they fit the formulating “hypotheses”.

Research refers to the systematic method consisting of

- Enunciating the problem,

- Formulating a hypothesis,

- Collecting the fact or data,

- Analysing the facts and

- Reaching certain conclusions either in the form of solutions towards the

concerned problem or in certain generals for some theoretical formulation.

RESEARCH OBJECTIVES

The objectives for carrying research among the Escorts employees are as follows:

o To analyse the effectiveness of company’s HR and IR policies on the

employees.

o To know whether the employees are satisfied with the facilities provided to

them.

o To know if they are satisfied with their job and salaries given to them.

RESEARCH DESIGN

A research design specifies the methods and procedures for conducting a particular study.Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance.

Types of Research Design

Research design have been classified in different ways, such as— Exploratory Research Design Descriptive Research Design Casual research Design

Exploratory Research

Many times a decision-maker is grappling with broad and poorly defines

problems.Exploratory research uses a less formal approach. It pursues several,

possibilities simultaneously and in a sense it is not quite sure of its objective.

Exploratory research is designed to provide a background, to familiarize and, as the word

implies, just “explore”, the general subject. A part of exploratory research is

investigation of relationships among variables without knowing why they are studied. It

borders on an, idle curiosity approach, differing from it only in that the investigator

thinks there may be a payoff in the application some where in the forest of questions.

Conclusive Research

Exploratory research gives rise to several hypotheses, which have to be tested for

drawing definite conclusions. These conclusions when tested for validity lay the

structure for decision making. Conclusive research is used for this purpose of testing

the hypotheses generated by exploratory research.

Conclusive research can further be classified as:

Descriptive

Experimental.

Descriptive Research

Descriptive research as the name suggests is designed to describe SomethinG.

To be of maximum benefit, a descriptive study must only collect data for a definite

purpose.

Descriptive studies vary in the degree to which a specific hypothesis is the guide. It

allows both implicit and explicit hypotheses to be tested depending on the research

problem.

Experimental Research

Experimentation will refer to that process of research in which one or more

variables are manipulated under conditions, which permit the collection of data, which

show the effects.

Experiments will create situation so that a researcher can obtain the particular data

needed and can measure the data accurately.

Experiments are artificial in the sense that the situations are usually created for testing

purposes. This artificiality is the essence of the experimental method.

SAMPLE DESIGN

To carry out the studying ESCORTSSample Size – 50 Respondents

Are chosen so that it could give a fair response to achieve our objectives and also could be finished within stimulated time limit.

Type of Sample Design

The type of sampling that was carried out was probability (convenience) sampling due to limited resources available.

In non probability sampling, I have chosen random sampling. Because this was best sampling method to do survey.

TOOLS USED: Pie Charts

DATA COLLECTION

The study was conducted by the means of personal interview with respondents and the information given by them were directly recorded on questionnaires.For the purpose of analysis of the data it is necessary to collect the vital information. There are two types of data, these are-

Types of Data used: Primary Data Secondary data

PRIMARY DATA

Primary data is one, which is collected by the investigator himself for the purpose

of a specific inquiry or study. Such data is original in character and is generated by

surveys conducted by individuals or research institutions.

Primary data can be obtained by:

Communication

Involves questioning respondents either verbally or in writing. This method is

versatile, since you need only to ask for the information; however, the response may not

be accurate.

Communication usually is quicker and cheaper than observation.

Observation

Involves the recording of actions and is performed by either a person or some

mechanical or electronic device. Observation is less versatile than communication since

some attributes of a person may not be readily observable, such as attitudes, awareness,

knowledge, intentions, and motivation. Observation also might take longer since

observers may have to wait for appropriate events to occur, though observation using

scanner data might be quicker and more cost effective. Observation typically is more

accurate than communication.

Personal Interviews

Have an interviewer bias that mail-in questionnaires do not have. For example, in

a personal interview the respondent’s perception of the interviewer may affect the

responses.

Questionnaire

The questionnaire is an important tool for gathering primary data. Poorly

constructed questions can result in large errors and invalidate the research data, so

significant effort should be put into the Questionnaire.

SECONDARY DATA

When an investigator uses the data, which has already been collected by others,

such data is called secondary data. The secondary data can be obtained from journals,

reports, government publications, publication of professional and research organization

and so on.

Since my research was of descriptive type and perform surveys, I collected

information in the form of primary data. I obtained primary data by questionnaire

method.

I used primary data to obtain the information, which is first hand and original in

character, so as to have fair information of employees’ satisfaction with the

company’s HR and IR policies.

DATA COLLECTION METHOD USED IN THE

PROJECT: -

PRIMARY DATA: -

It was qualitative research method.

For the purpose of positioning, the primary data is collect through employees of

company with the help of focused in depth interview of individuals.

SECONDARY DATA:-

Data available with company like Annual Report given by Auditors

named S.N.DHAMAN & CO.

Websites of various Plant Industries.

Data collect from their and customers.

Data collect from advertisement of various companies.

Data provided by the company.

SCOPE OF STUDY

To help the company determine how they make their financial planning

programme more effective for the client.

To determine various parameters to collect information through questionnaire of

clients.

To collect the findings and information to enable to analyze and draw

conclusions.

LIMITATIONS OF THE STUDY

Some of these limitations can be overcome whole some can be overlooked for a smooth conduction of research. Some of those restrictions that some on my way during the research are:

Due to time limitation, It was not possible to cover all the employees of all the departments.

Scope of the study is limited, so it can not be said that it is true representation of whole employees of the company.

On the basis of this data analysis, we can not assume the final situation of all the employees.

Sample size of 50 respondents is not enough to collect accurate information.

CHAPTER-4

ANALYSIS

AND

FINDINGS

LIST OF TABLES

TABLE1: Employee satisfaction with the company’s HR and IR policies

PERCENTAGE

54%

16%

30%

Yes

No

So-So

ANALYSIS

54% employees are fully satisfied with the company’s HR and IR policies.

16% are not at all satisfied with the company’s policies.

The rest of employees (30%) think that the policies are neither fully satisfactory nor

fully unsatisfactory.

CATEGORY RESPONSE PERCENTAGEYes 27 54No 8 16So-So 15 30Total 50 100

TABLE2: Proper channalisation of communication with the top

management

ANALYSIS

44% of the employees think that communication is properly channalised with the

top management.

On the other hand 16% of the employees are not at all satisfied with the

channalisation of communication with the top management.

And the rest 40% think it’s fine, neither very proper nor it is improper.


PERCENTAGE

44%

16%

40% Yes

No

So-So

TABLE3: Right level of autonomy and satisfactory empowerment


PERCENTAGE

40%

10%

50%

Yes

No

So-So

ANALYSIS

40% 0f the employees are fully satisfied with the level of autonomy and

empowerment given to them.

But 10% of the employees totally disagree to this.

Rest 50% are neither fully satisfied nor dissatisfied.

TABLE4: Success of HR department in maintaining Ethics and Values in

the organisation


PERCENTAGE

32%

24%

44% Yes

No

So-So

ANALYSIS

32% of the employees are fully satisfied with the maintenance of Ethics and Values

in the organisation.

24% are not at all satisfied with maintenance of Ethics and Values by the HR

department.

44% of the employees think they are So-So, neither very satisfactory nor

unsatisfactory.

TABLE5: Is Escorts a professionally managed company


PERCENTAGE

34%

6%

60%

Yes

No

So-So

ANALYSIS

34% of the employees think that Escorts is a professionally managed company.

And other 6% think Escorts is not at all a professionally managed company.

The rest 60% think it’s so-so neither very professional nor unprofessional.

TABLE6: Satisfaction with the performance appraisals conducted


PERCENTAGE

56%

24%

20%

Yes

No

So-So

ANALYSIS

56% of the employees are fully satisfied with the performance appraisals conducted

in the Escorts.

And 24% are not at all satisfied with the performance appraisals conducted therein.

The rest 20% think they are so-so.

TABLE7: Satisfaction with the Training programmes conducted


PERCENTAGE

46%

14%

40% Yes

No

So-So

ANALYSIS

46% of the employees are fully satisfied with the training programmes conducted in

the Escorts.

14% are not at all satisfied with these programmes conducted therein.

And the rest 40% think the programmes are so-so.

TABLE8: Success of Escorts in providing job satisfaction to employees


PERCENTAGE

38%

16%

46%Yes

No

So-So

ANALYSIS

According to 38% of the employees, Escorts has succeeded in providing job

satisfaction to them.

16% of the employees think Escorts has not at all succeeded.

46% of the employees think it’s so-so.

TABLE9: Is control of Recruitment and Selection both internal and

external


PERCENTAGE

48%

36%

16%

Yes

No

So-So

ANALYSIS

48% of the employees are satisfied with recruitment and selection techniques of

Escorts.

36% of the employees are not at all satisfied.

The rest 16% are neither fully satisfied nor dissatisfied.

TABLE10: Satisfaction with Suggestion schemes in the company


PERCENTAGE

32%

12%

56%

Yes

No

So-So

ANALYSIS

32% of the employees are satisfied with the suggestion schemes of the company.

12% of the employees are dissatisfied with the suggestion schemes carried on by

the company.

56% of the employees think that the suggestion schemes are so-so.

TABLE11: Satisfaction with the salaries given


PERCENTAGE

58%

14%

28%

Yes

No

So-So

ANALYSIS

58% of the employees are fully satisfied with their salaries.

The other 14% are dissatisfied with their salaries.

The rest 28% think the salaries given are so-so, neither very satisfactory nor

unsatisfactory.

TABLE12: Satisfaction with the disciplinary actions taken towards the

misconduct of employee


PERCENTAGE

60%

10%

30%

Yes

No

So-So

ANALYSIS

60% of the employees are satisfied with the disciplinary actions taken by the

company towards the misconduct of the employees.

10% of the employees think they are not at all satisfactory.

The rest 30% of the employees think that the disciplinary actions taken are so-so.

TABLE13: Satisfaction with the working conditions


PERCENTAGE

68%

8%

24%

Yes

No

So-So

ANALYSIS

68% of the employees are fully satisfied with the working conditions of the

company.

8% of the employees are totally dissatisfied with the working conditions.

24% of the employees think they are so-so.

TABLE14: Overall employee satisfaction in the company


PERCENTAGE

70%

10%

20%

Yes

No

So-So

ANALYSIS

70% of the employees are fully satisfied with the overall performance in the

company.

The 10% of the employees are dissatisfied.

20% of the employees think they are so-so.

FINDINGS1. 54% of the employees are satisfied with the HR & IR policies laid by the top

management.

2. 44% of the employees are satisfied with the channalisation of communication

with the top management.

3. 40% of the employees are satisfied with the level of autonomy and empowerment

given.

4. 32% of the employees are satisfied with the maintenance of Ethics and Values in

the organisation by the HR department.

5. 34% of the employees think Escorts is a professionally managed company.

6. 56% of the employees are satisfied with the performance appraisals conducted.

7. 46% of the employees are satisfied with the training programmes conducted.

8. 38% of the employees think that Escorts has succeeded in providing job

satisfaction to it’s employees.

9. According to 48% of the employees, the recruitment and selection policy are both

internally and externally controlled.

10. 32% of the employees think that the suggestion schemes are satisfactory.

11. 58% of the employees are fully satisfied with their salaries.

12. 60% of the employees are satisfied with the disciplinary actions taken towards the

misconduct of the employees.

13. 68% of the employees are fully satisfied with the working conditions in the

company.

14. 70% of the employees are fully satisfied with the overall performance in the

company.

SUGGESTIONS AND RECOMMENDATIONS

Recruitment and Selection policy of Escorts Limited is fair enough as there is both

internal and external recruitment but there is absence of antecedents Verification in

the recruitment process.

Attendance in Escorts is recorded through identity-cum-punching card at the time

of entry and exit from workplace. But these punching clock are isolated and no

exchange is there for so chances of proxy is more so I recommended that all

punching machine should be put on one place with a security guard so that chance

of proxy will reduce.

Performance appraisal of employee is done on annual basis in the month of

January. The performance policy is undoubtedly taken care of the quality

performance of a person as well his attitudinal or behaviour aspects which are

very vital for evaluation of performance.

Additionally, the SWOT analysis will be more meaningful. If the correct feedback of

swot analysis is shared with the employee in right prospective it would undoubtedly help

to improve the performance of employee and there by enhance the overall performance of

the organisation through swot we can design the training inputs for an employee also.

I had gone through the training and development process of the company and

understood the methodology adopted for meeting behavioural and technical

requirement of the employee. However, after the training feedback is taken which

in my opinion is not sufficient and company should focus on the structural feedback

of the individual from their respective department head as to what improvement the

employee has brought at job and in his behaviour.

Escorts management believed to provide safe & healthy atmosphere to the entire

team of Escorts as they provide their employees with facilities like AMBULANCE,

SAFETY EQUIPMENT, MEDICAL EXAMINATION, so there is nothing left to

suggest or recommend.

Suggestion scheme is one of the best schemes of Escorts limited, it motivates

employees a lot. As it, make employee feel that it is their organisation. Moreover, it

is their responsibility to ensure through their participation and good/valued

suggestions, the growth of the company. The awardees under the suggestion

scheme get monetary benefits and also recognised publicly.

Similarly, the success of any organisation depends on the strong and sound system

and the state of orderliness i.e. the discipline in the organisation. The company has

well defined certified standing orders to maintain discipline in the organisation. It

was observed Every one in the organisation rigorously follows the rule and

regulations.

At present, Industrial relations in the company are very stable and healthy. However it

depends on future contingencies. Nothing can be predicted. In Escorts the IR is thoroughly

and believe in resolving all issues (conflicts) across the table

ANNEXURE

BIBLIOGRAPHY

SAMPLE QUESTION PAPER

B ibliography

BOOKS REFERRED

C.B. Gupta (2007), Human Resource Management, Sultan Chand

C.R. Kothari (2007), Research Methodology, New Delhi: Prentice

Hall of India

WEBSITES REFERRED

www.escorts.com

www.ecel.com

COMPANY SOURCES

Escorts Personal Manual

Dynamic of Industrial Relation, Mamoria, C.B. Escorts Library

OTHER SOURCES

Indian Journal of management, vol. xxxv (March 2006)

http://www.ecel.com/

http://www.escorts.com/

QUESTIONNAIRE

Instructions:

The questionnaire has been designed to assure full anonymity.

Please don’t write your name anywhere in the questionnaire

Please tick the box, which is most suitable to your belief and experience.

There is no right and wrong answer the study will have its full benefit only if your responses are straight forward and your own.

Respond to all questions.

1. Are you satisfied with the IR policies laid by the top management?

YES [ ], NO [ ], CANT SAY [ ]

2. Is communication with the top management channelized properly with the rest of

the organisation?


3. Are Suggestion schemes maintained by the escorts are encouraging?


4. Do you find the welfare and safety procedures beneficial and effective?


5. Do you find the common food facility in canteen satisfactory?


6. Do you find the wage settlement procedure of ESCORTS ltd. satisfactory?


7. Do you find the long service award given by the organisation encouraging?


8. Do you have right level of autonomy and satisfactory empowerment?


9. Has the IR department successfully maintained ethics and values in the

organisation?


10. Do you find the farewell gift given to the retiring workmen satisfactory?


4. Are you satisfied with the way the performance appraisals are conducted?

YES [ ], NO [ ], SO-SO [ ]

5. Are you satisfied with the training programmes conducted for employees in

the organization?

YES [ ], NO [ ], SO-SO [ ]

6. Does Escorts succeeds in providing job satisfaction to the workmen?

YES [ ], NO [ ], SO-SO [ ]

7. Is the recruitment and selection policy both internal and external has been

properly controlled?

YES [ ], NO [ ], SO-SO [ ]

8. Are Suggestion schemes maintained by the escorts are encouraging?

YES [ ], NO [ ], SO-SO [ ]

9. Are Escorts salaries on par with those of comparable companies?

YES [ ], NO [ ], SO-SO [ ]

10. If the company always take corrective disciplinary action towards every

misconduct held by the workmen?

YES [ ], NO [ ], SO-SO [ ]

11. Does Escorts strives to be the strongest and the most respected engineering

company of the country as per its mission?

YES [ ], NO [ ], SO-SO [ ]

12. Has Escort management kept its belief of creating safe and healthy working

environmental protection to the employees and associates in the factory premises?

YES [ ], NO [ ], SO-SO [ ]

13. Overall, are you happier at Escorts company than you were a year ago?

YES [ ], NO [ ], SO-SO [ ]

As an employee I would like to do the following to make Escorts a

world-class organization.

THANKS FOR YOUR

COOPERATION

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