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BHEL – AN OVERVIEW

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

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

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

BHEL has

Installed equipment for over 90,000 MW of power generation for Utilities, Captive and Industrial users.

Supplied over 2, 25,000 MVA transformer capacity and other equipment in Transmission & Distribution network up to 400 kV (AC & DC).

Supplied over 25,000 motors with Drive Control System to Power projects, Petrochemicals, Refineries, steel, Aluminum, Fertilizer, Cement plants, etc.

Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network.

Supplied over one million Valves to Power Plants and other Industries.

BHEL’s operations are organized around three business sectors, namely Power, Industry – including Transmission, Transportation, Telecommunication & Renewable Energy – and Business. This enables BHEL to have a strong customer

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orientation, to be sensitive to his needs and respond quickly to the changes in the market.

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

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

VISION & MISSION OF BHEL

PRODUCT PROFILE of BHEL

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Established in the late 50’s, Bharat Heavy Electricals Limited (BHEL) is, today, a name to reckon with in the industrial world. It is the largest engineering and manufacturing enterprise of its kind in India and one of the leading international companies in the power field. BHEL offers over 180 products and provides systems and services to meet the needs of core sectors like: power, transmission, industry, oil & gas, non – conventional energy sources and telecommunication. A wide – spread network comprising 14 manufacturing divisions, 8 service centres, 4 power sector regional centres, 18 regional offices, besides a large number of project sites spread all over India and abroad, enables BHEL to be close to its customers and cater to their specialized needs with the total solutions – efficiently and economically. An ISO 9000 certification has given the company international recognition for its commitment towards quality. With an export presence in more than 60 countries, BHEL is truly India’s industrial ambassador to the world.

BHEL has joined the “Global Compact” of United Nations and has committed itself to support it and the set of core values enshrined in its ten principles. The “Global Compact” is a partnership between the United Nations, the business community, international labour and NGO’s. It provides a forum for them to work together and improve corporate practices through co-operation rather than confrontation.

Principles of the “Global Compact”

Human Rights

1. Business should support and respect the protection of internationally proclaimed human rights; and

2. Make sure they are not complicit in human rights abuses

LABOUR STANDARDS

3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining;

4. The elimination of all forms of forces and compulsory labour;

5. The effective abolition of child labour; and

6. Eliminate discrimination

ENVIRONMENT

7. Business should support a precautionary approach to environmental challenges;

8. Undertake initiatives to promote greater environmental responsibility;

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9. Encourage the development and diffusion of environmentally friendly technologies.

ANTI CORRUPTION

10. Business should work against all forms of corruption, including extortion and bribery.

QUALITY POLICY OF BHEL

In its quest to be World-class, BHEL pursues Continual Improvement in the Quality of its Products, services and Performance leading to Total Customer Satisfaction and Business Growth through dedication, commitment and team work of all employees.

BHEL’s contributions towards Corporate Social Responsibility till date include adoption of villages, free medical camps/charitable dispensaries, schools for the underprivileged and handicapped, children, ban on child labour, disaster/natural calamity aid, employment for handicapped, widow resettlement, employment for ex-servicemen, irrigation using treated sewage, pollution checking camps, plantation of millions of trees, energy saving and conservation of natural resources through environmental management.

BHEL shares the growing concern on issues related to Environment and Occupational Health & Safety (OHS), and is committed to protecting environment in and around its own establishment, and to providing safe and healthy environment to all its employees. For fulfilling these obligations, a Health, Safety & Environmental Policy has been formulated and implemented through management systems.

In recognition of this, BHEL has been awarded the ISO 14001 Environment Management Systems Certification and OHSAS 18001 Occupational Health & Safety Management Systems Certification from M/s Det Norske Veritas (DNV). Under UNDP programme for specialized services in the area of environment, BHEL has set up a Pollution Control research Institute (PCRI). BHEL also has a Model Centre for Occupational Health Services at Trichy, which is a pioneer in this field in India. Today it offers a wide range of occupational health care as well as expertise in work environment monitoring, toxicology, ergonomics and in organization of OHS to multitude of industries for different sectors in India. Few ILO sponsored candidates from African countries have undergone training at this Model centre.

BHEL is a member of CORE (Corporate Roundtable on Development of Strategies for Environment) launched by The Energy Research Institute (TERI). CORE is envisaged as a means to facilitate a proactive and a catalytic role for industry in

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addressing the environmental problems plaguing India and helping the industry towards sustainability paradigm. CORE is now a partner organization to the WBCSD (World Business Council for Sustainable Development). It has signed a memorandum of understanding with WBCSD, now called as CORE – BCSD, India. Interfaces between companies such as BHEL, TERI and the WBCSD would provide an important link to address issues as sustainable development at a global level and to learn and exchange experience of the participating companies.

PROJECT ENGINEERING MANAGEMENT (PEM) DIVISION

Project Engineering Management (PEM) division is BHEL’s power plant “system integrator”, a nodal agency in BHEL providing total engineering solutions for power projects, enabling BHEL to offer complete Engineering, Procurement and construction (EPC) services.

In 1947, BHEL set up its engineering consultancy wing under the name Consultancy Services Division (CSD) to address the market demand for turnkey services in power and related areas. In 1977, CSD was re-christened as Projects Engineering Division (PED). Since 1984, it has been known as Project Engineering Management (PEM).

PEM’s experience of over 200 coal based and gas based power stations, installed in India and abroad up to 500 MW unit rating, totaling more than 66,000 MW, makes it India’s largest power plant engineering and design organisation.

PEM – At the CORE of the CORE

PEM coordinates with all the agencies involved in the setting up of the power plant and smoothly integrates all the requirement s of manufacturing, fabrication, erection, commissioning, operations and maintenance, right at the engineering

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and design stage.

FINANCIAL STRUCTURE

ProjectEngineering Management

Customer

National Bodies

Balance of Plant Vendors

Project/Site Management

Contract-ing Agencies

Consultant

Quality/InspectionAgencies

BHEL Mfg. Units

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STRENGHTS

Capability to handle projects on turnkey / EPC basis. Wide range of engineering capabilities.

Capability to design to national and international codes and standards – BS, DIN, ASME, API, IBR, EJMA, IEC, VDE, IEEE.

Varied experience with national and international consultants.

Pool of experienced human resources.

Head(s)Engineering

Head(s)Proposal

Head Procurement

Head(s) Project Coordination& Commercial

Head Quality, LRP, IT & Vendor Development

Head Human Resource

Head Finance

Head Vigilance

Projects

Product Groups

Electrical Systems

MechanicalSystems Engineering

MechanicalPiping & Layout

Mechanical Auxiliaries

Civil

Control & Instrumentation

CCP Engg.

HEADPEM

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Over 550 qualified and registered vendors / sub-contractors.

Engineering and Design Office with adequate modeling, analysis and design software.

Infrastructure of servers, engineering workstations, LAN, high brand width external connectivity for e-mail, internet and data transfer.

RANGE OF CAPABILITIES

Concept stage

Feasibility Studies Detailed Project Reports (DPR)

Bid Preparation

Proposal Engineering Technical Engineering

Project Engineering

Basic Design System Design

Station Engineering

Development

Techno-Economic Studies Plant Optimization

Technology up-gradation / absorption

Contracts Management

Project Engineering Coordination

Procurement Support

Engineering & Procurement of Balance of Plant System

Engineering Support to Site

Erection and Commissioning support Trouble Shooting

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Renovation, modernization & repowering of power plant

DEPARTMENTS IN THE PEM DIVISION OF BHEL

Project Service Group (PSG) Material Management (MM)

Engineering :

a. Control & Information (C & I )

b. Electrical

c. CCP Engineering

Mechanical :

a. Mechanical Auxiliaries (MAX)

b. Mechanical Piping & Layout (MPL)

c. Mechanical Structural Engineering (MSE)

d. Q – Quality, VD – Vendor, MR

Proposal Engineering

Human resources

Finance

IT & Management Services

MANPOWER IN BHEL (PEM)

Executives – 302

Supervisors – 67

Artisans ( non executives) – 0

Supervisory technical staff – 23

Clerikal – 21

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Unskilled worker/skilled workers – 14

Ets – 20

Sts – 28

Total _ 475

AVERAGE AGE OF THE WOKERS – 47

HUMAN RESOURCE AND ITS MANAGEMENT, i.e., HRM

HUMAN RESOURCE

Organizations are made up of people and function through people. Without people organizations cannot exist. The resources of men, money, materials, and machinery are collected, coordinated and utilized through people. These resources by themselves cannot fulfill the objectives of an organization. Without united human efforts, no organization can achieve its goals. All the activities of an organization are initiated and completed by the persons who make up the organization. Therefore, people are the most significant resource of any organization. This resource is called human resource and it is the most 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.”

From the national viewpoint, human resources may be defined as, “the knowledge, skills, creative abilities, talents and aptitudes obtained in the population.” From the viewpoint of an organization, human resources represent the people at work. According to Jucius, human resources or human factors refer to “a whole consisting of inter-related, inter-dependent and interacting physiological, psychological, sociological and ethical components.” Thus, human resources represent the quantitative and qualitative measurement of the workforce required in an organization.

Human resources are characterised by the following features:

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i) Human resources of an organization are the product of their biological inheritance and interactions with the environment. Family relationships, religious influences, caste or racial background, educational accomplishments and organizational climate influence the attitudes, behaviour, and performance of human beings.

ii) Human resources are dynamic and behave differently. They react to the same situation in quite different ways. It is, therefore, very difficult to predict human behaviour.

ii) Human resources are heterogeneous. They consist of a large number of individuals each having a unique personality, different needs, attitudes and values. Each has his own physical and psychological traits. Most of the problems of an organization are people-related problems.

iv) Human resources are the most important element in organization. The effective utilisation of all other resources depends upon the quality of human resources.

v) Human resources have the greatest potential to develop and grow provided the right climate is provided to them. An organization can survive and grow if it has the right people at the right time working at right jobs.

HUMAN RESOURCE MANAGEMENT (HRM)

Human Resource Management (HRM) may be defined as a set of policies, practices and programmes designed to maximize both personal and organizational goals. It is the process of binding people and organizations together so that the objectives of each are achieved. According to Flippo, Human resource management is “the planning, organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance, and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished.”

According to National Institute of Personnel Management of India, “human resource management is that part of management concerned with people at work and with their relationships within the organization. It seeks to bring together men and women who make up[ an enterprise, enabling each to make his own best contribution to its success both as an individual and as a member of a working group.”

Scott and others have defined as follows: “human resource management is that branch of management which is responsible on a staff basis for concentrating on those aspects of relationship of management to employees and employees and with the development of the individual and the group. The objective is to attain maximum individual development, desirable working relationship between employers and

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employees, and employees and employees, and effectively moulding of human resources as contrasted with physical resources.”

Human resource management is known by different names, e.g., personnel management, manpower management, personnel administration, staff management, etc.

CHARACTERISTICS OF HRM

On the basis of the definitions given above, the following features of human resource management can be identified:

1. Comprehensive function: HRM is concerned with managing people at work. It covers all types of people at all levels in the organization. It applies to workers, supervisors, officers, managers and other types of personnel.

2. People-oriented: HRM is concerned with employees as individuals as well as groups. It is the task of dealing with human relationships within an organization.

3. Action-oriented: HRM focuses on action rather than on record-keeping or procedures. It stresses the solution of human resource problems to achieve both organizational objectives and employees’ personal goals.

4. Development-oriented: HRM is concerned with developing potential of employees so that they get maximum satisfaction from their work and give their bets efforts to the organization. It takes into account the personality, interests, opportunities and capacities of employees for this purpose. It seeks to help the employees to realize their full potential.

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5. Future-oriented: HRM is concerned with helping an organization achieve its objectives in the future by providing for component and well-motivated employees. It attempts to obtain willing cooperation of people for the attainment of the desired objectives.

6. Science as well as Art: HRM is a science as it contains an organized body of knowledge consisting of principles and techniques. It is also an art because it involves application of theoretical knowledge to the problems of human resources.

7. Staff function: The function of human resource management is advisory in nature. Human resource managers do not manufacture or sell goods but they do contribute to the success and growth of an organization by advising the operating departments on human resource matters.

8. Pervasive function: HRM is inherent in all organizations and at all levels. It is not confined to industry alone. It is equally useful and necessary in government, armed forces, sports organization etc. It permeates all the functional areas, e.g., production, marketing, finance, research, etc. Recruitment, selection, development and utilisation of people is an integral part any organized effort.

9. Challenging function: Managing of human resources is a challenging job due to the dynamic nature of people. People have sentiments and emotions so they cannot be treated like machines. It is, therefore, necessary to handle them tactfully. It is not simply managing people but administering a social system.

10. Interdisciplinary: HRM involves application of knowledge drawn from several disciplines like sociology, anthropology, psychology, economics, etc. In order to deal with human problems effectively, a manager must depend upon such knowledge.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

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The functions are common to all organizations though every organization may have its own human resource management programme. These functions of human resource management may broadly be classified into two categories, viz. ,

(1) Managerial Functions : managing people is the essence of being a manager. Like other mangers, a human resource manager performs the functions of planning, organizing, directing and controlling. PLANNING: A plan is predetermined course of action. Planning is the

process of deciding the goals and formulating policies and programmes to achieve the goals. Human Resource Management involves forecasting needs for human resources, predicting trends in labour market, wages, union demands, etc. and their impact on the organization. Planning bridges the gap between where we are and where we want to go. Planning is the means to manage change.

ORGANISING: In order to implement the plans, a sound organization structure is required. Organizing is the process of allocating tasks among the members of the group, establishing authority-responsibility relationships among them and integrating their activities towards the common objectives. The right organization structure is the foundation of effective management because without it the best performance in all other areas will be ineffective.

DIRECTING: It is the process of motivating, activating, leading and supervising people. It includes all those activities by which a manager influences the actions of subordinates. It involves getting others to act after all preparations concerned with initiating action. A manager can tap the maximum potential of employees through proper direction. Directing also helps in building sound individual and human relations in the organisaton.

CONTROLLING: It implies checking, verifying and regulating to ensure that everything occurs in conformity with the plans adopted and the instructions issued. Such monitoring helps to minimise the gap between desired results and actual performance. Controlling the management of human resources involves auditing training programmes, analyzing labour turnover records, directing morale surveys, conducting separation interviews and such other means.

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(2) Operative Functions : The operative or service functions of human resource management are the tasks which are entrusted to the human resource department. These functions are concerned with specific activities of procuring, developing, compensating and maintaining an efficient work force.

i)PROCUREMENT FUNCTION . It is concerned with securing and employing the right kind and proper number of people required accomplishing the organizational objectives. It consists of the following activities:

(a) Job Analysis . It is the process of studying in details the operations and responsibilities involved in a job so as to identify the nature and level of human resources required to perform the job effectively. Job descriptions and job specifications are prepared with the help of information provided by job analysis.

(b) Human Resource Planning. It is the process of estimating the present and future manpower requirements of the organisation, preparing inventory of present manpower and formulating action programmes to bridge the gaps in manpower.

(c) Recruitment. It is the process of searching for required human resource and stimulating them to apply for jobs in the organisation. A proper balance should be maintained between the internal and external sources of recruitment.

(d) Selection. It implies judging the suitability of different candidates for jobs in the organisation and choosing the most appropriate people.

(e) Placement. It means assigning suitable jobs to the selected candidates so as to match employee qualifications with job requirements.

(f) Induction or Orientation. It involves familiarising the new employees with the company, the work environment and the existing employees so that the new people feel at home and can start work confidently.

ii) DEVELOPMENT FUNCTION . Human resource development is the process of improving the knowledge, skills, aptitudes, and values of employees so that they can perform the present and future jobs more effectively. This function comprises the following activities:a) Performance and Potential Appraisal. It implies systematic evaluation of

employees with respect to their performance on the job and their potential for development.

b) Training. It is the process by which employees learn knowledge, skills, and attitudes to further organizational and personal goals.

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c) Executive Development. It is the process of developing managerial talent through appropriate programmes.

d) Career Planning and Development. It involves planning the career of employees and implementing career plans so as to fulfill the career aspirations of people. It involves mobility of human resource through promotions and transfers.

iii) COMPENSATION FUNCTIONS. It refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organisational objectives. It consists of the following activities:a) Job Evaluation. It is the process of determining the relative worth of a job.

b) Wage and Salary Administration. It implies developing and operating a suitable wage and salary programme. Surveys are conducted to determine wage and salary structure for various jobs in the organisation.

c) Bonus. It involves payment of bonus under the payment of Bonus Act, 1965 as well as non-statutory bonus and other incentives.

iv) INTEGRATION FUNCTION. It is the process of reconciling the goals of the organisation with those if its members. Integration involves motivating employees through various financial and non-financial incentives, providing job satisfaction, handling employee grievances through formal grievance procedures, collective bargaining, worker’s participation in management, conflict resolution, developing sound human relations, employee counseling, improving quality of work life, etc.

v) MAINTENANCE FUNCTION. It is concerned with protecting and promoting the physical and mental health of employees. For this purpose, several types of fringe benefits such as housing, medical aid, educational facilities, conveyance facilities, etc. are provided to employees. Social security measures like provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group insurance, etc. are also arranged. Health, safety, and welfare measures are designed to preserve the human resources of the organisation. Human resource records and research are also important elements of the maintenance function.

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SCOPE OF HUMAN RESOURCE MANAGEMENT

The Indian Institute of Personnel Management has described the scope of human resource management into the following aspects:

1) The labour or Human Resource Aspect. It is concerned with manpower planning, recruitment, selection, placement, induction, transfer, promotion, demotion, termination, training and development, layoff and retrenchment, wage and salary administration, incentives, productivity, etc.

2) The Welfare Aspect. This aspect is concerned with working conditions and amenities such as canteens, crèches, rest rooms, lunch rooms, housing, transport, education, medical help, health and safety, washing facilities, recreation and cultural facilities, etc.

3) The Industrial Relations Aspect. This is concerned with the company’s relations with the employees. It includes union-management relations, joint consultation, negotiating, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes, etc.

All the above aspects are concerned with human element in industry as distinct from the mechanical element.

MEASURES TO SPEED-UP GROWTH

The following steps may be taken to develop HR management in India:

(i) Institutions such as National Institute of Personnel Management, Kolkata; Xavier Labour Relations Institute, Jamshedpur; various universities etc. should develop the right values and attitudes for the growth of HR management.

(ii) Organisational structure should be so designed as to promote interdependence and mutuality between line and staff.

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(iii) Top management should place the HR department at par with the other department and assign the same status to HR manager as other departmental heads.

(iv) The legal and welfare role of HR manager should be adequately supplemented by human relations and managerial roles.

(v) Job description and job specification for HR manager should be written in accordance with the latest developments in human resources and behavioural sciences.

(vi) Candidates selected for HR job should be provided formal training in reputed institutions.

(vii) HR managers should enlarge their perception about their role. They should consider and function as change agents rather than confining themselves to conventional roles of welfare officer, law officer and canteen supervisor.

(viii) Efforts should be made at all levels to proffessionalise HR management.

QUALITIES OF HUMAN RESOURCE MANAGER

The job of Human Resource Manager is quite complex and challenging. In order to be successful, several qualities are required in an HR manager. Some of these qualities are given below:

(1) Educational Qualifications . A Human Resource Manager should possess the following qualifications:

(a) Degree of recognized university.

(b) Postgraduate degree/diploma in sociology or social work or human resource management/industrial relations/labour welfare/labour law, or MBA with specialization in HRM.

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(c) Degree in law will be an additional/desirable Qualification.

(2) Personal Attributes . Like any other manager, the human resources manager requires several personal qualities. Some of these qualities are given below:

(a) Intelligence . This implies the ability to understand; depth of perception,etc.

(b) Communicative Ability . Command over language, ability to express correctly, listening skill, ability to explain and interpret policy and programmes, etc. are elements of communicative skill.

(c) Decisiveness . It means analytical ability, sound judgement, foresight, etc.

(d) Human Skills . It involves an objective mind tact, ability to discriminate between right and wrong, insight in human nature, etc.

(e) Teaching Skill . It implies the ability to teach and train employees.

(f) Executive Skills . These refer to ability to implement policies and programmes speedily and accurately.

(g) Leadership Skills . These include physical fitness, moral courage, ability to inspire confidence and to win cooperation, ability, passion for anonymity, etc.

(3) Training and Experience. Training in industrial psychology, labour legislation and industrial relations is very useful for a human resource manager. Experience in an organisation helps him to create a pertinent approach. To some extent, HRM is an art where practice makes one a successful manager.

(4) Professional Attitudes. HRM is emerging as a profession. A professional approach to the management of human resources is required in the global environment.

ROLE OF HUMAN RESOURCE MANAGER

The role of human resource manager may be analysed as follows:

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1. As a Specialist. Human resource manager is an expert. As a specialist, he advises the heads of different functional departments on various aspects of human resource management, such as human resource planning, recruitment, selection, orientation, training, appraisal, etc.

2. As an Information Source. The human resource manager provides valuable information about labour market, labour laws and other related areas. Such information is necessary for the formulation of proper policies and procedures about human resources. He serves as a record keeper and researcher to provide the required information.

3. As a Change Agent. The human resource manager can serve as an internal change agent to initiate and spearhead necessary improvements in human resource practices. As a consultant, he can provide necessary infrastructure and support for organisational development. He helps in introducing and implementing major institutional changes in the organisation.

4. As a Controller. The human resource manager assists line managers in effective implementation of human resource policies and programmes. His advice and service is essential for monitoring and controlling the progress.

5. As a Liaison Man. Very often the human resource manager is asked to act as a linking pin between different departments/divisions of an organisation.

6. As a Housekeeper. The human resource manager looks after the safety, health, welfare, etc. of employees.

7. As a Fire Fighter. In union-management relations, the human resource manager act as a shock absorber. He is the management’s defence against trade union activists. He acts as a trouble shooter.

Thus, the human resource manager plays a variety of roles depending on the needs of the particular organisation.

HRM in BHEL(PEM)

The Human Resource Management Functions in BHEL consists of the following:

1. Recruitment

2. Probation

3. Contract labor

4. Training

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5. Deputation

6. Organization Chart

7. Manpower budget

8. ACR’s

9. Promotion

10. Standard Designation

11. Transfer

12. Outside Employment

13. Resignation

14. Retirement

15. Review at 55yrs.

16. NOC for passport/VISA

17. Sites overseas

18. Sites within India

19. Leave

20. Punctuality

21. Study leave

22. L.T.C

23. Holiday Homes

24. Medical Facility

25. Pay Fixation Reward

26. Higher Study

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27. CDA

The above functions have been described as follows:

1. RECRUITMENT : According to Flippo, “Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization.” In the words of Yoder, “Recruitment is a process to discover the sources of manpower in adequate numbers to facilitate effective selection of an efficient working force.” Recruitment needs are of three types – planned, anticipated, and unexpected. Planned needs arise from changes in organization and retirement policy.

PROCESS OF RECRUITMENT

The recruitment process consists of the following steps:

1. Recruitment Process generally begins when the human resource department receives requisitions for recruitment from any department of the company. The human resource requisitions contain details about the position to be filled, number of persons to be recruited, the duties to be performed, qualifications required from the candidate, terms and conditions of employment and the time by which the person should be available for appointment, etc.

2. Locating and developing the sources of required number and type of employees.

3. Identifying the prospective employees with required characteristics.

4. Communicating the Information about the organization, the job and the terms and conditions of service.

5. Encouraging the identified candidates to apply for jobs in the organization.

6. Evaluating the effectiveness of recruitment process.

THE RECRUITMENT PROCESS

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SELECTION PROCESS

HUMAN RESOURCE PLANNING

RECRUITINGREQUIRED PERSONNEL

SELECTING QUALIFIED PERSONNEL

PLACING SELECTED PERSONNEL ON JOBS

FINDING AND DEVELOPINGSOURCES OF POTENTIAL EMPLOYEES

SEARCH FOR PROSPECTIVE EMPLOYEES (a) Developing techniques(b) Attracting candidates

EVALUATING EFFECTIVENESS OF RECRUITING

INTERNAL RESOURCES

HUMAN RESOURCE RESEARCH

JOB POSTING

EXPERIENCE

TRANSFERRING TO NEW JOB

UPGRADING SAME POSITION

PROMOTION TO HIGHER JOB

EXTERNAL RESOURCES

EMPLOYEE REFERALS

ADVERTISING

SCOUTING

PROVIDING INFORMATION

CLARIFYING DOUBTS

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The selection is the process of choosing the most suitable persons out of all the applicants. The selection process can be successful if the following conditions are satisfied: (a) some one should have the authority to select. This authority comes from the

employment requisition as developed through an analysis of the workload and wokforce.

(b) There must be some standard of human resource with which applicant can be compared. In other words, a comprehensive job description and job specification should be available beforehand.

(c) There must be a sufficient number of applicants from whom the required number of employees may be selected.

The characteristics we look for while hiring are: the person should be hungry for success and have a risk taking capacity. He or she must also be able to ‘think-out-of-box’, learn to live with the stress, be a great team player and have a cosmopolitan look.

Steps involved in the selection process are as follows:

Preliminary interview : it is essentially a sorting process in which prospective candidates are given the necessary information about the nature of the job and the organization. Necessary information is also elicited from the candidates about their education, skills, experience, salary expected, active the candidate is found suitable, he is selected for further screening. Preliminary interview saves time and efforts of both the company and the candidate.

Application Blank : it is a traditional and a widely used device for collecting information from the candidates. The application form should provide all the information relevant to selection. Generally, an application form contains the following information:

(a) Identifying information – name, address, telephone no., etc.(b)Personal information – age, sex, place of birth, marital status,

dependents, etc.(c) Physical characteristics – height, weight, eye sight, etc.(d)Family background(e)Education – academic, technical and professional.(f) Experience – job held, employers, duties, performed, salary

drawn, etc.(g)References

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(h)Miscellaneous – extra curricular activities, hobbies, games, and sports, membership of professional bodies etc.

Selection test : psychological tests are being increasingly used in employee selection. A test is a sample of some aspect of an individual’s attitudes, behaviour and performance. It also provides a systematic basis for comparing the behaviour, performance and attitudes of two more persons. Tests are based on the assumption that individuals differ in their job related traits which can be measured. No test however, is full proof. Tests are useful when the number of applicants is large. Further, tests will be useful only when they are properly designed and administered.

Employment Interview : an interview is a conversation between two persons. In selection, it involves a personal, observational and face to face appraisal of candidates for employment. Interview is an essential element of selection and no selection procedure is complete without one or more personal interviews. The information collected through application and test can be cross – checked in the interview. A selection interview serves three purposes : (a) obtaining information about the background, education, training, work history and interests of the candidate; (b) giving information to candidates about the company, the specific job and human resource policies; and (c) establishing a friendly relationship between the employer and the candidate so as to work for the organisation. In practice, however, interviews become a one sided affair serving only the first purose.

Medical Examination : applicants who have crossed the above stages are sent for a physical examination either to the company’s physician or to a medical officer approved for the purpose. Such examination serves the following purposes:

1. It determines whether the candidate is physically fit to perform the job. Those who are physically unfit are rejected.

2. It reveals existing disabilities and provides a record of the employee’s health at the time of selection. This record will help in settling company’s liability under the Workmen Compensation Act for claim for an injury.

3. It prevents the employment of people suffering from contagious diseases.

4. It identifies candidates who are otherwise suitable but require specific jobs due to physical handicaps and allergies.

Reference checks : the applicant is asked to mention in his application form, the names and addresses of two or more persons who know him well. These may be his previous employers, heads of educational institutions or public figures. The organisation contacts them by mail or telephone. They

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are requested to provide their frank opinion about the candidate without incurring any liability. They are assured that all the information given by them will be kept confidential. The opinion of referees can be useful in judging the future behaviour and performance of a candidate.

Final Approval : final approval is given to the candidates. Employment is offered in the form of an appointment letter mentioning the post, the rank, the salary grade, the date by which the candidate should join and other terms and conditions in brief. Appointment is generally made on a probation of one or two years. After satisfactory performance during this period, the candidate is finally confirmed in the job on permanent basis or regularized.

5. PROBATION: Probationer is an employee who is provisionally employed with a view to being considered for appointment on the regular establishment of the company. Unless otherwise provided in the terms of appointment in the terms of appointment or any other agreement or award, the following rules will govern the probation and confirmation of employees:all employees on first appointment in the service of the company including employees appointed to a higher grade consequent on promotion or on the basis of an open selection shall be placed on probation for a period of one year during which period for confirmation against the regular post.

the period of probation may be extended at the discretion of the competent authority, but will not be extended by more than one year save for exceptional reasons to be recorded in writing.

every new employee appointed in the company’s service will be issued with a formal order of confirmation on satisfactory completion of probationary period or the extended period of probation, as the case may be. The employee will be considered to be continuing on probation until so confirmed in writing.

an order relating to confirmation or extension of probation will normally be communicated within one month from the date of completion of the

probationary period or extended period of probation. If, however, for administrative or other reasons it is not done so, the employee concerned will be informed of the reasons thereof within the stipulated period of one month.

if during the probationary period or extended period of probation, the performance, progress and general conduct of the employee are not found satisfactory or upto the standard required for the post , his/her services are liable to be terminated at any time without notice and without assigning any reason therefore.

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permanent government servants joining BHEL against open advertisement who retain lien on their substantive posts in their parent departments the normal probation period of all such employees will be one year from the date of joining the company. However, after satisfactory completion of a probationary period of at least three months from the date of joining the company, any such employee can be permanently absorbed in the company provided his pay has been fixed under the relevant government rules applicable to government servants getting absorbed in public sector undertakings in public interest and provided the employee himself pays the required contributions towards leave salary and pension to his parent department till the date of his absorption in BHEL.

3. STANDARD DESIGNATIONS: The following scheme of standardized designations is applicable to the various levels of Executives of the company.

a. TOP MANAGEMENT POSTS

Board level

Designations

CHAIRMAN & MANAGING DIRECTOR

DIRECTOR( )

Other than board level SG. No. DESIGNATIONS

E9 EXECUTIVE DIRECTOR E8 GENERAL MANAGER I/C GENERAL MANAGER ( )

b. OTHER THAN MEDICAL AND SECURITY DEPARTMENTS

SG. No. DESIGNATIONS

E7 ADDL. GENERAL MANAGER( ) E6 SR. DY.GENERAL MANAGER()/

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DY.GEN.MANGER/SPECIALIST

E5 SR.MANAGER()/SPECIALIST

E4 MANAGER()

E3 DY.MANAGER()

E2 SR.()OFFICER/ SR.()ENGINEER

E1 ()OFFICER/()ENGINEER

c. MEDICAL DEPARTMENT

SG. No. DESIGNATIONS General category Specialist category E1 Medical Officer Medical Officer

E2 Sr.Medical Officer Sr. Medical Officer

E3 Asst.Cheif Medical Officer Asst.Chief medical Officer (speciality concerned)

E4 Dy. Chief medical officer Dy. CMO(speciality concerned)

E5 CMO(In case head of unit CMO(In case head of unit Medical) medical) Sr.DY.CMO(Others in the Sr.DY.CMO(concerned speciality) same scale Others in the same Scale

E6 CMO( In case head of unit CMO(In case head of medical)

Medical) Addl. CMO(others in the same Addl. CMO(speciality concerned

E7 Head of medical services Head of medical services (speciality concerned)

E8 General Manager & Head of Medical services

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4. STANDARD NON-EXECUTIVE DESIGNATIONS: The following are the standard designations applicable to the various levels of

non - executives of the company:

Category-non supervisors (Technical)

AI Unskilled worker Sanitary worker gr.II Catering attendant gr.II

AII Semi skilled worker Sanitary worker Gr.I Jamadar Assistant cook

AIII artisan GR.IV Draughtsman GR.IV Lab. Assistant GR.IV Store keeper Gr.IV

AIV Artisan GR.III Draughtsman GR.III Lab asstt.Gr.III Store keeper GR.III Operator gr.III

AV Artisan GR.II Draughtsman GR.II Lab asstt. GR.II Store keeper GR.II Operator GR.II

AVI Artisan GR.I Draughtsman GR.II Lab asstt.GR.II Store Keeper GR.II Operator GR.II

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AVII Technician Sr. Draughtsman Gr.III Sr. Lab asstt.Gr. III Sr. Store keeper Gr.III Sr. mechanic GR.III Sr.operator Gr.III

AVIII Sr.Technician Sr. Draughtsman Gr.II Sr. Lab asstt.Gr. II

Sr. mechanic GR.II Sr.operator Gr.II Sr. Store keeper Gr.II

AIX Master Technician Sr. Draughtsman Gr.I Sr. Lab asstt.Gr. I

Sr. mechanic GR.I Sr.operator Gr.I Sr. Store keeper Gr.I

AX General technician General draughtsman General Artisan General Draughtsman General Lab asstt. General Store keeper General Operator General Fireman

AXI Chief technician Chief draughtsman Chief Artisan Chief Draughtsman Chief Lab asstt. Chief Store keeper Chief Operator Chief Fireman

Category- non supervisory (non technical)

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BI Attendant Gr.II Mali Gr.II Hospital Attendant Gr.II Chowkidar

BII Attendant Gr.II Mali Gr.II Hospital Attendant Gr.II Duftary Security Guard

BIII Clerk Telephone operator EDP operator GR.III Time keeper Gr.III Security Sub inspector Gr.III Asstt.Estate Inspector Gr.III

BIV Asstt. Gr.II Sr. Telephone Operator Gr.II Receptionist Gr.II Stenographer EDP Operator GR.II Time keeper Gr.II Asstt.Estate Inspector Gr.II Sr.Security Guard gr.II

BV Nurse Gr.II

BVI Asstt. Gr.I Sr. Telephone Operator Gr.I EDP Operator GR.I Time keeper Gr.I Asstt.Estate Inspector Gr.I Sr.Security Guard gr.I Receptionist Gr.I Asstt.cashier

BVII Sr.Asstt.Gr.III

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Sr.Planning asstt.Gr.III(Bhopal only) Personal Asstt.Gr.III Sr.EDP Operator Gr.III Sr. Time keeper Gr.III Sr. Asstt.cashier Gr.III Sr.Receptionist Gr.III

BVIII Sr.Asstt.Gr.II Sr.Planning asstt.Gr.II(Bhopal only) Personal Asstt.Gr.II Sr.EDP Operator Gr.II Sr. Time keeper Gr.II Sr.Receptionist Gr.II

BIX Sr.Asstt.Gr.I Sr.Planning asstt.Gr.I(Bhopal only) Personal Asstt.Gr.I Sr.EDP Operator Gr.I Sr. Time keeper Gr.I Sr. Asstt.cashier Gr.I Sr.Receptionist Gr.I

BX General Asstt. General Planning asstt. (Bhopal only) General Personal Asstt. General EDP Operator General Time keeper General Receptionist

General Cashier

BXI Chief Asstt. Chief Planning asstt. (Bhopal only)

Chief Personal Asstt. Chief EDP Operator Chief Time keeper

Chief Receptionist Chief Cashier

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Chief Nurse

Category- Supervisor (technical)

SAI Chargeman Technician Gr.III

Technical Asstt.Gr.III Design Asstt.Gr.III Scientific Asstt.Gr.III Store Holder Gr.III Chargeman (purchase) Lecturer Gr.III Fire Supervisor Gr.III

SAII Asstt. Foreman Technician Gr.II Technical Asstt.Gr.II Design Asstt.Gr.II Scientific Asstt.Gr.II Store Holder Gr.II

Lecturer Gr.II Fire Supervisor Gr.II

JE Junior Executive

SAIII Foreman Technician Gr.I Technical Asstt.Gr.I Design Asstt.Gr.I Scientific Asstt.Gr.I Store Holder Gr.I

Lecturer Gr.I Fire Supervisor Gr.I Lecturer Gr.I Supervisor Horticulture Gr.I

SAIV General Foreman

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SAV Executive Foreman

SAVI Sr. Executive Foreman

SAVII General Executive Foreman

Category- Supervisory(non-technical)

SBI Asstt.Office superintendent Private Secretary Gr.III Media Asstt.Gr.III Cashier Gr.III Accountant Supervisor Gr.III Medical Technician Gr.III

SBII Office superintendent Private Secretary Gr.II

Media Asstt.Gr.II Cashier Gr.II

Supervisor Gr.II Medical Technician Gr.II

Sr.Accountant Gr.II/ Accountant

JE Junior Executive

SBIII Sr.Office superintendent Private Secretary Gr.I

Media Asstt.Gr.I Cashier Gr.I

Supervisor Gr.I Medical Technician Gr.I

Sr.Accountant Gr.I/ Accountant Translator Gr.I

SBIV Chief Supervisor

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SBV Executive supervisor

SBVI Sr.Executive Supervisor

SBVII Genl.Executive supervisor

5. Contract labour: a contract labourer is a worker who has been recruited through Contractors who maintain close links with the sources of such workers. This source is often used to recruit labour for construction jobs. The disadvantage of this source is that when the contractor leaves the organization, people employed through him also go.

6. Promotion policy and rules : OBJECTIVES

(a) To provide all employees with broad equality of opportunity in growth and career prospects.

(b) To ensure fairness, equitability, consistency and uniformity in the matters of promotion of employees in all the units/divisions of the company.

(c) To recognize and reward employees for their contribution to the growth of the organisation.

(d) To sustain the high morale of the employees by informing them of the promotion opportunity existing in the organisation.

GUIDELINES AND PRINCIPLES

(a) Promotion from one group/cadre to another group/cadre: It is done on the basis of merit as assessed through a selection process

which may include an appraisal of performance, and test/ interview designed to determine the employees’ skill, aptitude and abilities for effective consideration for promotion to the higher group/cadre.

Employees promoted to or within the supervisory cadre or to/within the executive cadre upto E5 grade will be on probation for a period of one year.

(b) Promotion within a group/cadre

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Employees are eligible for consideration for promotion from a lower grade to the next higher grade within the same group/cadre on completion of the number of years of service prescribed in the lower grade and attainment of satisfactory standards in conduct and performance. The ‘qualifying period’ for promotion within a group will be notifird by the management from time to time keeping in view the requirements of the organisation.

(c) ‘Fast Track’ Promotions With a view to rewarding employees for sustained outstanding

performance, and in order to provide motivation to them for further improvement, accelerated promotions are considered for eligible employees on completion of a specified period of service as may be prescribed for this purpose for each grade.

(d) it may not be possible to ensure advancement/career prospects beyond a certain point for employees who either do not possess the requisite qualifications/skill needed for the higher post or are held up for want of requirements in the higher groups/cadre. Such cases are reviewed and employees are considered for the higher grade on the completion of 10 years good and effective service provided their conduct and performance are otherwise satisfactory. This is normally not applicable to the position of E5 i.e. the Sr.manager’s grade and above.

(e) There may be a certain percentage of employees who do not qualify for promotion under any of clauses provided above. These are so due to their consistently ‘poor’ performance and/or other reasons. Such employees treated under the category ‘drop-outs’ are not eligible for promotion until there is recorded improvement in their overall performance and conduct.

RULES AND PROCEDURES

Promotions will be considered by Departmental Promotion Committees(DPCs) to be constituted at the unit level for various grades falling under the purview of the unit management. The criteria adopted by the DPC for considering promotions will broadly include factors such as qualifications, performance, general suitability and potential for higher responsibility.

In case of promotion from Supervisory cadre to executive cadre, the selection committee should include a central selection board member on it.

The promotion cases of eligible employees who are transferred after 31st

march and before June, will be considered by the previous unit, if due for

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promotion, during that year. The recommendations of the DPC will be communicated to the latter unit of issue of orders.

PREFERENCE FOR SC/STThe government of India orders issued from time to time relating to reservations for SC/ST candidates will be observed in so far as these are applicable in the context of BHEL promotion policy.

SENIORITYSeniority as between personnel selected in the same selection shall be determined in accordance with the order of merit drawn up by the selection promotion committee and approved by the competent authority.

DEBARRINGEmployees undergoing punishment for specified period shall not be considered fro promotion during that period.

Keeping in view the changes in internal conditions and external conditions, the company may at any time at its discretion, make any changes in the promotion policy and the rules as stated herein if it is satisfied that such changes are necessary I the overall interest of the organisation.

7. Transfer Policy And Benefits :

POLICY Every employee of the company is liable for transfer from one department/section/job within the same unit/division or from one unit/division of the company to another or from the company to any other government department/public sector undertaking as and when required by the company at the discretion of the management.

HORIZONTAL TRANSFERUnless selected for a higher position, the transfer of an employee is made in the same grade and pay as held at the time of transfer (hereinafter referred to as ‘horizontal transfer’).

TRANSFER ON SELECTION TO HIGHER POST AGAINST OPEN ADVERTISEMENT

The employees selected from one unit/division for appointment to higher posts in another unit/division against open advertisement are entitled to all the benefits as on horizontal transfer except the grant of disturbance allowance and payment of bonus. Their pay in the higher post is fixed as on promotion.

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TRANSFER ON SELECTION AS TRAINEE/APPRENTICEThe employees selected as trainees/apprentices against open advertisement are governed by the rules on “Entitlements of Departmental Trainees” as notified from time to time.

8. Training: Training is the process of increasing the knowledge and skills for doing a

particular job. It is an organized procedure by which people learn knowledge and skill for a definite purpose. The purpose of training is basically to bridge the gap between job requirements and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending or continuous process.

a. IMPORTANCE OF TRAINING

A well – planned and well – executed training programme can provide the following advantages: Higher productivity

Better Quality of Work

Less Learning Period

Cost reduction

Reduced Supervision

Low accident rate

High morale

Personal growth

Organisational climate

b. BENEFITS OF TRAINING TO EMPLOYEES Training is useful to employees in the following ways:

Self – confidence

Higher earnings

Safety

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Adaptability

Promotion

New – skills

c. DESIGNING A TRAINING PROGRAMME In order to achieve the training objectives, an appropriate training policy is

necessary. A training policy represents the commitment of top management to employee training. It consists to rules and procedures concerning training. A training policy is required: To indicate the company’s intention to develop its employees;

To guide the design and implementation of training programmes;

To identify the critical areas where training is to be given on a priority basis; and

To provide appropriate opportunities to employees for their own betterment.

A sound training policy clearly defines the following issues:

The results expected to be achieved through training.

The responsibility for the training function.

The priorities for training.

The type of training required.

The time and place of training.

The payments to be made to employees during the training period.

The outside agencies to be associated with the training.

Relationship of training to the company’s labour policy.

9. Terms and conditions of deputation:

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The period of deputation will initially be for two years from the date on which he handed over charge of the post in the parent and end on the date on which he assures charge of the post in parent department.

Pay (for non – top posts)He will have the option either to get his pay fixed in the deputation post under the operation of normal government rules or to draw pay of the post held by him in his parent department plus a deputation (duty) allowance in accordance with and subject to the conditions laid – down in ministry of finance OM no. F.I(II)-B-III(P) 75 dated ) 07.11.1975 and OM no.6/30/86 – estt.pay-II) dated 9th December, 1986 of ministry of personnel, public grievances & pension, department of personnel & training as further amended/modified from time to time.

Pay (for top posts) His pay in the deputation post carrying a scale of pay of Rs.

will be fixed in the accordance with the provisions of the ministry of finance O.M. no. 2(104)/77-BPE(GM-I) dated 17.12.1977.

Joining time and joining time pay Pay during joining time, both on transfer to company service and reversion

therefrom to be regulated under the Rules of the Central government and paid by the company, period of joining time being regulated under the same rules.

General He should not be transferred to another post or entrusted with any

additional charge or promoted to an ex – cadre/higher post by the company without obtaining prior approval of the competent authority in the lending department.

Over payment if any made by the company will be recovered from the officer even after the expiry of the terms of deputation.

10. Manpower:

Executives – 302

Supervisors – 67

Artisans ( non executives) – 0

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Supervisory technical staff – 23

Clerikal – 21

Unskilled worker/skilled workers – 14

Ets – 20

Sts – 28

Total _ 475

AVERAGE AGE OF THE WOKERS – 47

11. Dearness allowance

It is granted to compensate the price increase above CPI 1099 points, to which the revised salary grades relate. The payment of D.A is based on slab basis related to the percentage increase over quarterly average of AICPI 1099.

The periodically and effective dates of revision will be as under:-i. Executives /supervisors/employees in equivalent grades and employees

in AX/BX/AXI/BXI grades

quarterly average date of effect

Sep – nov 25th dec Dec – feb 25th march March – may 25th june June – aug 25th sept

ii. employees in grade AVI/BVI &below

Quarterly average date of effect

Aug – oct 25th nov Nov – jan 25th feb Feb – april 25th may May – july 25th aug

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In determining the average consumer price index the fraction below 0.5 will be ignored and 0.5 and above will be rounded off to the next higher integer.

For computation of D.A., 50 paise and above to be rounded off to the next rupee and less than 50 paise to be ignored.

In respect of employees upto AVI/BVI grades, asum of Rs.26/- p.m. is to be added to the amount worked out on the basis of quarterly average upto AICPI 1099.

D.A. on HPL

D.A. during half pay leave is to be computed with reference to the basic pay actually drawn. In other words, in such cases D.A. will be computed on the reduced pay only.

12. House rent allowance & lease facility

Rates of house rent allowance (HRA)i. Payment of HRA at the above rates would be subject to the provision that

the employee will have to bear 10% of their pay towards house rent. Employees who live in houses owned by themselves or their spouses will be paid HRA at the above rates depending upon the rateable values assessed by the municipal authority of the area where the house is situated provided 10% of pay is borne by them.

ii. in case the employee is not in apposition to produce rent receipt or where the rateable value of the self occupied portion of house or the rent paid by him for the rented accommodation is either nominal or insignificant, he would be paid HRA in accordance with the rates indicated above subject to an overall ceiling of Rs.1500/- in ‘A’, ‘B1’ and ‘B2’ class cities, Rs.750/- in ‘C’ class cities and Rs. 450/- in unclassified areas.

Reimbursement of lease maintenance expenditure

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The expenditure incurred by the executives on repairs/maintenance alteration carried out in the leased premises occupied by them may be reimbursed subject to the following conditions:

i. The repairs/maintenance/minor alterations carried out are essential and the landlord is not agreeable to meet the expenses thereon subject to the conditions that no alterations in the premises will be undertaken without the specific written consent of the landlord.

ii. The total amount to be reimbursed in a year commencing from the date of operation of the lease shall not exceed the actual rent of the premises for one month or the normal ceiling limit of house rent for the leased accommodation as may be applicable at the time of submission of the claim whichever is lower. The time of submission of the claim, should however, relate to the lease year to which the claim pertains.

iii. Reimbursement of expenses on account of purely maintenance work like, white/colour washing/distemper, painting/polishing of wooden fittings will be made once in a period of two years only for the same premises.

iv. Expenses incurred within 3 months of the date of occupation or in the three months preceding the termination of the lease should not exceed Rs.100/-. If it exceeds this limit, the excess amount shall not be reimbursed. Renewal/extensions of lease shall be deemed to be in continuation of the earlier lease for this purpose. In cases of those who superannuate/resign wherein at the time of incurring maintenance expenditure the period preceding the termination of lease exceeds three months but falls short of one year, the actual expenses on repairs/maintenance for the full year will be payable subject to the ceiling as per actual lease rent/entitlement whichever is lower.

v. Reimbursement of expenses incurred by the executives will be made on the basis of a certificate in the Performa supported by the details of the expenses along with the dates on which repairs /maintenance etc. were carried out.

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vi. The cost of bulbs/ tubes will not be reimbursed.

vii.The reimbursement of expenses ion these accounts will be made twice in a year i.e. in June and December unless the expenses incurred amount to half of the full entitlement or more.

viii. The above provisions will also be applicable mutatis mutandis to the accommodation leased by the company.

General :

i. Where both husband and wife are employees of the company and posted at the same station, HRA is admissible to both of them as per their individual entitlement subject to the prescribed ceiling limit, without production of rent receipt/municipal assessment of rental value. However, HRA is not admissible to both, if one of them has been allowed company leased accommodation.

ii. HRA is not admissible to employees who continue to occupy company/government accommodation unauthorizedly i.e. after the allotment of accommodation allotted ton them.

iii. Unless otherwise specified in these rules, the payment of HRA is governed by the relevant government of India rules and procedures issued from time to time.

iv. For the purposes of these rules, the term ‘pay’ in addition to basic pay includes special pay, personal pay, deputation (duty) allowance and non-practising allowance.

13. House rent recovery

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Recovery of rent for accommodation leased by the company will be at the rate of 10%of pay.

In respect of employees residing in company owned/arranged accommodation the rates of house rent recovery will be as detailed below. Company arranged accommodations ate those which are specifically notified by the corporate office and does not include leased accommodation.

It may be niticed from annexure – III to the above referred letter of govt. of India that ranges of living areas corresponding to different types of accommodation are overlapping. It has also been decided that no additions/alterations of structural charsceter With a view to ensure uniformity in classification of accommodation and determining the flat rates of license fee, following classifications may be followed.

It has also been decided that no additions/alterations of structural character may be carried out in residencies at the request of the allottees. Such additions/alterations, if considered necessary, may be carried out in all similar residencies in a standardized manner and no additional license fee or charges mey be recovered from the allottees for such additions.

Normally, water and electricity charges are payable by the allottes to the local bodies. Where, however, such charges cannot be recovered from the allottees due to non-availability of separate motors etc., this will continue to be recovered by the electrical appliances, air conditioning appliances etc., would also be recovered from the allottees, if issued.

The living area of the quarters indicated in annexure III has been assessed on the basis of the following area of the bulk of general pool quarters have been constructed over a long period of time. However, there may be cases, where the living area of the quarters may be slightly less than the minimum specified or the relevant type or slightly more than the maximum specified. In such cases, license fee may be recovered on the basis of classification of the types of accommodation and based on the lowest or highest rates depending on the lower living area or higher living area of the quarter and in such cases, the license fee may be fixed on a provisional basis and such anomalies brought to

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the notice of the directorate of estates indicating the type of accommodation, plinth area, living area, year of construction and number of rooms available etc., so that such cases can be considered and decision taken.

14. Travel and daily allowance (TDA) rules

The “BHEL traveling and daily allowance rules” will be applicable to all regular full time employees of the company including stipendiary trainees other than apprentices i=under the apprentices act,1961.

“Traveling allowance” means an allowance the employee draws in connection with the company’s work.

CONDITIONS:

Traveling allowance will normally be admissible by the shortest route. However, the controlling officer may relax this condition in exceptional circumstances.

Charges for reservation and telegram charges for securing reservation, if charged by the railways, will be reimbursed. Agency charges paid to travel agents will be reimbursed subject to a maximum of Rs. 15/- against a voucher for each journey, if the employee purchases tickets through travel agents.

Employees who travel by rail should indicate the ticket number in their TA claims.

Non-availability of reservation by train is not an acceptable reason for not performing the journey connected with official work.

Executives of the rank of E.D. and above are entitled to travel by the executive class on the airbus routes operated by the Indian airlines on tour.

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Executives in the pay scale of E4 and above can travel by air while on duty. In other cases, sanction of competent authority should be obtained.

Employees sent for training in India should not be permitted to travel by air till further orders.

Journeys by road include journeys by steam launch or other sea bound vessels. Where journeys are performed by road between places connected by rail, the road mileage as calculated will be limited to rail fare as applicable. Where journeys are performed by road between places not connected by rail, the road mileage as calculated will be limited to the notional fare by the entitled class.

15. Lodging in guest houses

Accommodation charges are payable by the employees when they stay in the company’s guest houses and they will be paid daily allowance as ‘with lodging’. In case of stay at govt. or other public sector undertakings’ guest houses with which BHEL has reciprocal arrangements at identical rates, daily allowance will be paid as ‘with lodging’.

Employees staying at govt/public sector undertaking’s guest houses with whom BHEL does not have any reciprocal arrangements, will be paid daily allowance as applicable for the station as per rules. In addition, they may be reimbursed the actual lodging charges paid by them on production of bills.

The room rent for stay while on tour in guest houses maintained by the company is settled by the employee will be reimbursed on submission of T.A claims along with the receipts of room rents. In addition D.A. as applicable for the station will be paid.

The room rent for the period of stay may be debited to the unit to which the employee belongs. In such cases, the following procedure will be followed:

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The guest house will prepare the bill towards the room rent in triplicate and obtain the signature of the employee on the original and the copies. The bill will indicate the employees’ division, staff no., period of stay and it will be retained by the guest house, second copy will be sent to the unit finance department and the original will be given to the employee concerned.

Employees are not expected to stay in the guest house of commercial concerns other than public sector undertakings.

16. Pay fixation rules

These rules may be called BHEL Pay Fixation Rules.

Pay on initial appointment:

The initial pay of an employee appointed to a post will be fixed normally at the minimum of the time scale of the post to which he is appointed. Exceptions to this rule are given in Annexure I. Higher initial pay may, however, be granted at the discretion of the management in deserving cases.

Pay fixation on promotion:

If an employee is drawing pay at the maximum of the scale and is promoted, his pay will be increased notionally by adding one increment and then fixed at the next above stage in the higher scale. However, where an employee has already been given stagnation increments, no notional increment is to be added in such cases and pay may be fixed at the next higher stage to the pay drawn in the lower post, including stagnation increments. If an employee had previously officiated in the same scale, or had been promoted on the last occasion and the period for which it has been drawn should be taken into account for the purpose of drawal of increment.

Treatment of special pay/personal pay on promotion:

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Where special day has been given in lieu of higher grade, it should be taken into account for the purpose of fixation of pay. Special pay which is granted as an incentive for specific purposes under the company rules and which forms part of basic pay under these rules is also similarly taken into account for the purpose of fixation of pay on promotion subject to rules prescribed therefore.

Drawal of increment

Annual increment will be drawn in a time scale on completion of one year’s satisfactory service.

Removal of anomalies in pay fixation:

Where an employee promoted to a post draws a lower arte of pay in that post than another employee junior to him in the lower grade and promoted subsequently to the same or identical higher post, the pay of the senior employee, in the higher job, should be stepped upto a figure equal to the pay fixed for the junior employee in that higher post.

Reversion to lower grade/post on disciplinary grounds

i. In case of reversion of an employee from a higher grade/ post to a lower grade/post, the fixation of pay will be done in the manner decided by the authority ordering such reversion and based on government rules framed from time to time.

ii. these rules inter – alia, provide that the disciplinary authority may allow thw concerned employee to draw any pay not exceeding the maximum of the lower grade or post which it may think proper; provided that the pay so allowed to be drawn should not exceed the pay that would have been fixed by counting the service rendered in higher grades or post as service in the lower grade or post.

Miscellaneous

In the case of employees who are given alternative appointment due to medical disqualification, the pay last drawn by them should be protected

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subject to the condition that it should not exceed the maximum of the scale applicable to the post to which they are appointed on medical advice.

17. Study leave

i. ELIGIBILTY

INDIA: study leave is admissible to a regular employee of the company who has rendered a minimum of 3 yrs service inclusive of training/apprenticeship period in the company.

Abroad : (a) study leave is admissible to a regular employee of the company who has rendered a minimum of 5 yrs of service exclusive of training/apprenticeship period in the company for courses abroad.

(b) the grant of study leave is further subject to the condition that the employee:

I. Is not due to retire within 5 years from the date on which the employee is expected to return to duty after the completion of the course.

II. Is not employed on a contract/deputation/temporary or casual basis.

III. Is not under suspension and no disciplinary proceedings/vigilance cases are pending against him.

ii. Period of study rule

It is normally admissible for a period of 2 yrs for masters programme and 3 yrs in the cases of doctoral programme once during the entire service of the employee subject to exigencies of work. The period of study leave may be extended by maximum pf one year in case of PG programmes and 2 yrs in cases of doctoral programme on merits of each case. Each case of study leave abroad will require specific approval of the corporate Office.

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Study leave will not be debited to the regular leave account of the employee.

iii.Entitlement The employee is not entitled to any pay or allowances during the

period of study leave.

The employee is entitled to the benefit of continuity of service for CPF and gratuity.

If the employee chooses to contribute to his provident fund account during the period of study leave, the company will make a matching contribution as per rules in force from time to time. The contribution will, however, be based on the qualifying emoluments drawn by the employee before proceeding on study leave.

An employee on study leave will continue to be covered under GSLI subject to the condition that he regularly contributes his monthly share. Company will pay only the risk portion.

The period of leave will be treated as qualifying service for eligibility of promotion and earning increment in the relevant company scale subject to the following conditions.

1. the period of study leave that will qualify for the above benefits will be restricted to three yrs.

2. successful completion of the higher studies and acquisition of the related qualifications is a pre – requisite for extending these benefits.

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3. in considering the employee for promotion, the prescribed procedure will be observed. This will also include the process of interview where applicable.

4. the employees will be considered for promotion only after they have joined duty in BHEL on the expiry of study leave and in the event of selection they will be given notional seniority in the promoted grade.

5. financial benefit on account of promotion/increment will accrue earliest from the date the employee has joined his duty on the expiry of the study leave.

6. the study leave will not be considered for the purposes of earning any kind of leave.

7. other conditions as may be relevant, will also be applicable

iv. Procedure

The employees will apply to his Head Of Department (HOD) for permission to join the course as soon as an advertisement/notification is issued by the concerned institution in the prescribed form. This will be examined by the HOD and forwarded to the personnel department with recommendations for further action.

iv. The sanctioning authority will be the executive director/head of the unit except for courses outside India or courses of more than two years duration, in which case prior approval of CMD would be necessary.

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v. Each case of study leave will be reported with details to the corporate personnel department for information and record.

vi. On completion of the course, the employees shall submit to the sanctioning authority the relevant certificate/degree/paper within 6 months on rejoining the company in case of non – declaration of result and within 1 month on declaration of result, in support of his having passed the examination, which should also indicate the dates of commencement and completion of the course, with the remarks, if any, of the authority in charge of the course.

vii.In case the employee fails to complete the course satisfactorily, rejoining the service of the company will require specific approval of the director/head of the unit or corporate office as the case may be.

viii. The portion of study leave availed without completing the study will not be reckoned for the purpose of eligibility for promotion or for earning increments.

ix. In case the employee fails in the examination/ is unsuccessful in the study, the entire period so spent will be treated as “dies – non” for purposes of counting of eligibility period for next promotion. The employees will also not be eligible for agent of study leave again.

18. Special Incentive and Bonus

Special incentive payment

Employees who are not eligible for bonus under the payment of Bonus Act are paid special incentive. The payment on this account is linked to the performance under the MOU and is regulated as per the categorization of the company’s performance by the government.

Annual payment of bonus

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Annual payment of bonus in the company is regulated strictly in accordance with the provisions of the payment of bonus act, 1965, as amended from time to time. The rates of bonus are computed with reference to and on the basis of the statements of accounts maintained by the manufacturing units.

19. BHEL Conduct, Discipline and Appeal Rules

i. short title and commencement

these rules may be called BHEL conduct, discipline and appeal rules, 1975.

These came into force on 1st sept.,1975

ii. Application

These rules shall apply to all employees except:-

Those in casual employment or paid from contingencies; Those governed by the standing orders.

iii. General

a. Every employee of the company shall at all times

Maintain absolute integrity;

Maintain devotion to duty; and

Do nothing which is unbecoming of a public servant.

b. Every employee of the company holding a supervisory post shall take all possible steps to ensure the integrity and devotion to duty of all employees for the time being under his control and authority.

iv. Misconduct

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Without prejudice to the generality of the term “misconduct”, the following acts of commission shall be treated as misconduct.

Theft, fraud, or dishonesty in connection with the business or property of the company or of property of another person within the premises of the company.

Taking or giving bribe or any illegal gratification.

Possession of pecuniary resources or property disproportionate to the known sources of income by the employee or on his behalf by another person which the employee cannot satisfactorily account for.

Furnishing false information regarding name, age, father’s name, qualifications, ability or previous service or any other matter germane to the employment at the time of employment or during the course of employment.

Acting in a manner prejudicial to the interests of the company.

Willful insubordination or disobedience, whether or not in combination with other, of any lawful and reasonable order of his superior.

Absence without leave or overstaying the sanctioned leave for more than four consecutive days without sufficient grounds or proper or satisfactory explanation.

Habitual late or irregular attendance.

Neglect of work or negligence in the performance of duty including malingering or slowing down of work.

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Damage to the property of the company.

Interference or tampering with any safety devices installed in or about the premises of the company.

Sleeping while on duty.

Smoking within the premises of the establishment where it is prohibited.

Gambling within the premises of the establishment.

Commission of any act which amounts to a criminal offence involving moral turpitude.

Absence from the employee’s appointed place of work without permission or sufficient cause, etc.

BIBLIOGRAPHY

Company’s personnel manual;

Company’s website i.e. www.bhel.com or www.bhelpem.com;

Book referred: Human Resource Management by C.B.GUPTA.

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