TATA CUMMINS LTD. (TCL) Profile The company is a 50:50 joint venture between Tata Motors, India's largest automobile manufacturer, and Cummins Engine Company of USA, the world leader in design and manufacture of diesel engines. Tata Cummins is ISO 9001, ISO 14001 and TS 16949 certified. The Rs 300 Crore project with an authorized share capital of Rs 250 Crore has been set up at Jamshedpur for the manufacture of Diesel engines to power Tata Motors Limited's commercial vehicles. The decision to locate at Jamshedpur was based on the desire to be near the customer. Commercial production of engines from kits commenced in January 1996 and the machining lines for in-house manufacture of components started in March 1997. Tata Cummins currently employs about 850 people and has a capacity of 72,000 engines per annum & has plans to increase its capacity up to 1,20,000 in recent period. Product 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
TATA CUMMINS LTD. (TCL)
Profile
The company is a 50:50 joint venture between Tata Motors, India's largest
automobile manufacturer, and Cummins Engine Company of USA, the world leader in
design and manufacture of diesel engines. Tata Cummins is ISO 9001, ISO 14001 and TS
16949 certified.
The Rs 300 Crore project with an authorized share capital of Rs 250 Crore
has been set up at Jamshedpur for the manufacture of Diesel engines to power Tata
Motors Limited's commercial vehicles. The decision to locate at Jamshedpur was based
on the desire to be near the customer. Commercial production of engines from kits
commenced in January 1996 and the machining lines for in-house manufacture of
components started in March 1997.
Tata Cummins currently employs about 850 people and has a capacity of
72,000 engines per annum & has plans to increase its capacity up to 1,20,000 in recent
period.
Product
The low emission Diesel Engines manufactured by Tata Cummins are for
use in a new generation of Tata Motors Ltd's Medium and Heavy Commercial Vehicles.
The engines conform to EURO - I , EURO - II & EURO - III standards for emissions.
The 78 to 235 Horsepower engines have a high power to weight ratio and will enable
Tata Motors Ltd. access new markets worldwide with its advantage of emissions, power,
oil consumption and durability.
1
Management System
The company's efforts in achieving manufacturing excellence are guided
by the principles and practices of the Cummins Operating System (COS), and the
Customer Led Quality objectives. The Company has a flat organization structure. The
level of first line Supervisors has been eliminated with the operatives (known as
Associates) being organized in Teams. The formally structured Team Based Work
System constitutes an integral part of the COS and is a key initiative to involve /
empower shop level employees to work towards continuous improvement and customer
delight. Total Quality systems or TQS has been adopted from the early stages in the
company, in line with Cummins Quality Systems. The latest communications and
computing systems have been installed for connectivity internally and with Cummins
systems in USA to provide real-time on-line information integrating the manufacturing
and management information / control systems.
Vision
To be widely acknowledged and benchmarked as one of the best
companies in the world.
We achieve this through our core values:
Care for customers
Obsession for quality
Care deeply about people
Do what's right and not what's convenient
Guarantee product leadership
Responsible citizenship
Relentless improvement
2
Human Resources
TCL very strongly believes that 'People make the difference'. It believes
in nurturing employee potential through involvement, empowerment and continuous
learning.
It has 846 employees consisting of 125 Managers and 721 Associates. The
average age of our employees is 29 years. They represent all social and ethnic strata of
India. The Company has a diverse work force representing 5 religions, belonging to 14
states and speaking more than 15 languages.
TCL incorporates diversity and fair treatment of employees as a core
value.
3
HR Policies And Procedure At TCL
Procedure of recruitment
Assessment of manpower requirement (Responsibility of MD)
Recruitment of employees is preceded by assessment of manpower
requirement. The requirement of employees and the scope of work is assessed by the
concerned department heads, sanctioned by the MD and then only the process of
recruitment begins.
Advertisement for vacancies (Responsibility-Asst, Manager HR)
The invitation or requirement of candidate is sent to the various locations
of the company and other group companies, an ad is placed in the press and also an ad is
put up on the web site of the company. However, on the day of the interview first
preference is given to the employees of TCL or employees of the Group Company and
then candidates in general.
Suggestion
A common application form should be given out with the ad in news
papers and also on the web, this would make the work of the HR dept much easier while
short listing the applications matching with the required criteria.
Short listing of applications received (Responsibility - Asst Manager HR,
Asst. Manager HR & Asst Manager of concerned dept)
The ad for availability for jobs attracts lots of application. There is a
deadline mentioned in the ad, and the applications received only before the expiry of the
period should be entertained, this criteria can be relaxed only maybe for a couple of days
due to mail delays and other reasonable delays. An officer in the HR dept first does the
short-listing of applications. Considering the required criteria for a particular vacancy.
4
After short listing by the HR dept. an officer from the concerned dept. where the vacancy
exists shortlists the already shortlisted list on a more specific basis. The candidates are
then called for interviews.
Suggestion
The applications should be stamped or signed by the dispatch department
and the date should be specifically mentioned. By doing so any application received after
the due date would not be entertained which would stop any personal favours. Instead of
following the above procedure of short listing candidates twice a person from the
concerned dept. and the HR dept. employee can shortlist the employees together at one
time which would reduce the time lag between application and appointment. This
method would also minimize the lapses by the HR dept. in short listing a particular
candidate who may be short of experience by maybe a year than the criteria but has
experience in a number of areas.
Payment to outstation candidates (Responsibility - Asst. Manager HR)
After short sting the candidates, the candidates are called for interviews on
a specific date and time. Candidates’ form out station is being paid 2"" AC fare to & fro
by whatever train they travel by filling in the requisition form. The company pays no
accommodation amount for outstation candidates.
Suggestion
TCL pays 2"d AC train fare to the candidates coming from outstation by
train or any mode they travel. A comprehensive list should be prepared by the HR dept.
clearly staling the amount to be paid to outstation candidates from the place they are
coming.
5
Procedure of interviews
The company officials carry out two rounds of interviews. The first round
is held by an officer from the dept. concerned where the vacancy exists who fills in the
interview assessment form and depending on the form filled the candidate is either
rejected or selected for another round of interview. The second round of interview is
taken over by dept. head & HR dept. head that again fill up the same assessment form
filled in during the 1st round of interview.
Suggestion
The 1" round of interview is to be conducted by the Manager HR or VP
HR/Admin who would prepare a formal interview assessment form. Based on the above
form the candidates are again shortlisted and then are called for a second round of
interview, which should be concerned head of department. On the basis of the interview
assessment forms the candidate should be selected.
Selection and appointment of suitable candidate (Responsibility –
Manager HR)
After conducting the two rounds of interviews the candidate most suitable
is selected and an appointment letter in duplicate is sent to the candidate. The candidate is
required to sign the duplicate copy of the letter suggesting a date of joining the company.
If the candidate does not accept the appointment then the candidate who was second best
would be approached for appointment. The company also receives applications for jobs
on a day-to-day basis, these applications are also considered while filling in vacancies
and the process of interview and appointment is carried out.
Suggestion
It would always be better to fill in the vacancies by recruiting internally or
from group companies. AK the pre employment formalities should be checked to be
completed and all the copies of testimonials, certificates, proof of date of birth and
6
relieving letter from the previous employer should be taken on record. Recruitment
through placement agencies is also a good option. A contract should be signed clearly
stating the terms and conditions of the arrangement. The company can also go in for
campus recruitment; ads can be put up on the notice boards of all the premiere institutes
relating to the discipline the vacancy exist.
Accommodation of candidates
Candidates selected from outstation are either provided accommodation
facility in Tata colony or they themselves take care of their accommodation. Employees
residing with Tata colony, a deduction of 10% is deducted from the salary. An employee
residing at some other places HRA (House rent allowance) and HMA (house
maintenance allowance), which is Rs. 1161 of HRA, is being paid to the employees.
Employees on probation (Responsibility-Concerned Dept. head)
The candidates selected for appointment are recruited on a probation basis
of 6 months. The performance of these candidates is reviewed after 6 months. If the
department head is satisfied about his performance, then he can be recruited permanently
whereas on the other hand if the dept. head is not satisfied with the employee the
probation period can be extended or the dept. head can fire the employee. Extension or
laying off an employee on probation is at the sole discretion of the dept. head.
Suggestion
Employees, after completion of their probation period, if performance is
not satisfactory to the dept. head are laid off on the discretion of the dept. head. This
should not be the case; the dept. head in consultation with the VP HR/Admin should take
a correct step. However, the employee should be asked for an explanation regarding the
same, he should be enquired whether he is enjoying his job or not and if his interests are
found suitable to some other depts. Then transfer should also be considered. Lying off an
employee should be considered only in extreme cases.
7
Procedure Performance Evaluation, Upgradation
List of vacancies
The procedure for promotions first of all requires a list of vacancies to be
prepared in the respective departments taking into consideration vacancies due to
retirement, resignation and the like and also technical vacancies due to general manpower
requirement.
List of employees eligible for promotion (Responsibility- Manager HR)
Once the vacancies have been chalked out a list of employees who are
eligible for promotions is prepared. This list is basically bifurcated in two parts i.e. one
list is a list of employees who are in the same grade for more than 3 years and the other is
a list of all the remaining employees.
Suggestion
Employees with excellent track records and consistent performance, who
are above average, should be considered for promotion. Employees with multi skill with
exposure in a wide range of areas should be given a priority. Career history,
achievements, exposure should be considered while selection of a candidate for
promotion.
Procedure of performance evaluation (Responsibility - Concerned dept.
Head, Concerned dept. Head & Manager)
The performance evaluation on which the performance is based is done
orally by the functional heads and then reviewed by the review committee; there is
nothing in writing regarding the performance of the employees. First preference is given
to employee who is stuck up in the same grade for a period of 3 years or more, if
performance found satisfactory are promoted, if performance is not satisfactory then the
other list of remaining employees is looked into and after evaluation the vacancy is filled
in. There may be cases whereby the employee has completed a slab of salary and is due
8
for promotion or upgradation, in such cases these employees are then fitted in the next
slab of salaries i.e. they are being upgraded in the next level irrespective of the vacancy
criteria. The employees falling in these classes may also end up getting the same salary
for a period of more than a year even if their salary has reached a maximum level in that
slab if their performance is not satisfactory as per the concerned dept. head.
Suggestion
Performance evaluation is the systematic evaluation of employees by their
respective dept. heads at periodic intervals with respect to his personal job characteristics
and his potential for development in his career. For each dept. head should set the above
standards for all the employees, his actual performance is to be considered against the set
standards, discussion with the employee for deviations if any or his strengths and
weaknesses by the concerned manager and continuous monitoring.
Grievance Redressal - Process of grievance handling
(Responsibility - LEG & VP HR/Admin)
The employees can write all their grievances in the grievance/complaint
register, which is kept at the reception table regarding house keeping. In the case of
employee grievance and complaints in general they can report the same to the local Ethic
Counselor. TCL has local Ethic counselor at all the locations i.e. at Bombay, Babrala,
and at Mithapur. The Controller of Finance is the local Ethic Counselor (LEG) who
would report to the Company Ethic Counselor (CEC). The VP HR/Admin is the
Company Ethic Counselor. The LEC sends a report to the CEC on a six monthly basis
in the prescribed format. Issues if any are resolved by the LEC In consultation with the
concerned department head.
Suggestion
A file is being maintained by the LEC (Local ethic counselor), however
there should be a register for complaints being maintained by the LEC kept at the
9
reception table and also the HR regarding the same should develop a specified form. The
grievance if any reported by an employee should redressed as soon as possible.
Procedure for Training & Development
Receipt and selection of training program (Responsibility - Concerned dept.
head, Manager HR)
On receipt of the training program from TMTC/other institutes the HR
dept. head in consultation with the various heads of dept. chalks out the programs for
training the employees which in turn is put up to the MD for approval. Once the
programs are approved, the Heads of dept. at all the offices of the company are informed
and are requested to nominate employees who would be send for training. TMTC/other
employees along with the program also mention the grade of employees for whom the
training session is arranged. As soon as the names of the employees attending the training
session are approved, the HR dept. sends confirmation letters to TMTC/Other institutes
stating the name of employees and also a reminder letter of the training session is also
send to the employees who would be attending the training session.
Exit interview
Procedure of Exit Interview (Responsibility -VP HR/Admin)
Exit interview is conducted when the employees leave on their own
accord. The HR dept. head conducts these interviews. TCL has taken it as a practice to
interview the employees before they plan to leave or resign the organization. The HR
head normally takes the exit interviews of the employees. Human resources departments
conduct exit interviews (also called exit surveys) to gather data for knowing the reason
for which the employee is leaving the job, for improving the working conditions and
retaining employees. However, a hidden purpose is to help employers avoid costly
litigation down the road, caused by "disgruntled" employees. Employees are told to give
10
the information about their future employer so that the company can transfer their PF
accounts to their new employer.
Leave and Attendance
Procedure of attendance (Responsibility - Asst. Manager Admin)
The working hours of TCL extend from 9.45am to 5.00pm. An hour grace
period is given in the morning, employees entering after 9.15am are marked late. As the
employees enter they have to initial the attendance register by entering the check in time
and the check out time of the previous day. 3 late marks in a month amount to a debit of 1
casual leave, however this rule does not apply to employees of level M3 and above. Prior
approval of the dept. head is required if the employee wishes to report late for duty on a
particular day, which is received by the officer handling the attendance register who does
not mark the particular employee late. If an employee coming late without prior
intimation to the dept. head, but gives justification of his doing so to the dept. head, his
late mark may be cancelled on approval by the dept. head.
Suggestion
Rather than keeping a manual attendance register electronic entry should
be kept, however the employee should sign out in the register at the time of leaving only
rather than on the next day. The signing in and sign out should be in the presence of
someone from the Admin dept.
Procedure of leave (Responsibility - Asst. Manager Admin)
A leave application form is to be filled in by the employee requiring leave.
This is sanctioned by the concerned dept. head and reviewed by the Asst. Mgr.
HR/Admin. Before going to the employee handling leave record who then updates the
leave record of the employee.
11
Adjustment of leave
If an employee takes a leave of 2 days or less then the casual leave of an
employee is debited, however on the number of days exceeding 2 days the excess is
adjusted from the privilege leave. If sick leave is availed for a period of more than 2
days, a doctor's certificate has to be given. There may be a case whereby there is shortage
of the number of days standing lo the credit of the employee, in such a situation the
number of days in excess is being debited to the leave allowed in the next year in the case
of a permanent employee. For an employee on probation the number of days to be
debited in the coming years depends on his becoming a permanent employee.
In case the company does not retain him the excess days are adjusted in