PREFACE The viewing of Human Resource or Personnel of an organization as an important economic resource is a recent development. Human Resource of an undertaking is defined as a collection of aptitude, skills, expertise, knowledge, and attitude, effort of workers, direct and indirect staff and executives. Human resource is considered to be the most valuable asset of any organization. The performance, success or failure of the organization is greatly influenced by the quality of this resource. All professional post graduate course MBA envisage for a student to acquire proficiency in academic knowledge as well as its application in practice by way of exposure to the business world. Industrial training is, therefore, a part of this curriculum, which helps in developing analytical and interpreting skills in the students through application of several concepts of management to understand the functioning of the industries. I conducted this training in Ashok Leyland Pantnagar (Unit), which is based on extensive study of the Human Resource Management System. I have tried to explain in detail the present level of HR STRATEGY REGARDING EMPLOYEES SATISFACTION AT ASHOK LEYLAND IN SIDCUL PLANT. I have tried also to recommend a few modifications, which might help management to tackle the 1
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PREFACE
The viewing of Human Resource or Personnel of an organization as an important
economic resource is a recent development. Human Resource of an undertaking is
defined as a collection of aptitude, skills, expertise, knowledge, and attitude, effort of
workers, direct and indirect staff and executives. Human resource is considered to be the
most valuable asset of any organization. The performance, success or failure of the
organization is greatly influenced by the quality of this resource.
All professional post graduate course MBA envisage for a student to acquire proficiency
in academic knowledge as well as its application in practice by way of exposure to the
business world. Industrial training is, therefore, a part of this curriculum, which helps in
developing analytical and interpreting skills in the students through application of
several concepts of management to understand the functioning of the industries. I
conducted this training in Ashok Leyland Pantnagar (Unit), which is based on extensive
study of the Human Resource Management System.
I have tried to explain in detail the present level of HR STRATEGY REGARDING
EMPLOYEES SATISFACTION AT ASHOK LEYLAND IN SIDCUL PLANT. I have tried
also to recommend a few modifications, which might help management to tackle the
various issues of dissatisfaction among the group. The company genuinely was interested
in making employees satisfied as it believes:
“Satisfied Worker is a Productive Worker”.
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CHAPTE
R 1
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CONCEPT OF HUMAN RESOURCE MANAGEMENT
The terms human resource management and personnel management are treated
synonymously and used inter changeably. Human resource management is concerned
with the “PEOPLE” dimension in management. Every organization is made up of people,
acquiring their services, developing their skills, motivating them to high levels of
performance, and ensuring that they continue to maintain their commitment to archive
organizational objectives. This is true regardless of the type of organization-government,
business, education, health, recreation etc. Getting and keeping good people is critical in
every organization. In essence, Human resource management is concerned with the
proper use of the human factor in business. Today the science of Human resource
administration encompasses the entire human aspect of management. In short, we may
say that Human resource management consists of the following activities;
Concerned with recruitment and selection of employee.
Concerned with personnel policies.
Training and development of employees.
Ensure economic, social and individual satisfaction.
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AIMS & OBJECTVES OF HRM
The objectives of HRM are follows:
o To attain maximum individual development.
o To achieve effective utilization of human resources in the achievement of
organization goal. Both monetary and non-monetary incentives motivate
employees.
o To attract and secure appropriate people capable of performing effectively the
organizations specific tasks.
o To ensure that the organization gets the right type of people in the right numbers
and at the right time place.
o To establish a desirable working relationship between employer and between
groups of employees.
o To generate max.individual group development with in an organization by
offering opportunities for advancement to employees through training and job
education by effecting transfer or offering training facility.
o To maintain a high moral better relations inside an organization by sustaining
and improving the condition which have been established so that employees may
stick to their jobs for a longer period.
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HUMAN RESOURCE STRATEGY:
Human resource strategy ensure that the organization human resource can fulfill
the needs of stated business. The top management can formulate and implement plans to
achieve the necessary human resource. The crux of resource planning lies in the capacity
of manager to anticipate and meet changing needs relating to acquisition, development
and utilization of people. It is basically a two-step process forecasting and program
planning. The second step involves taking an inventory of available information on
current staffing, individual qualifications and appraisals, expressed employee career
interests and targeted development plans. The current human resource requirements have
to be analyses. The balancing should be done between the projected future supply and
demand. Thus results represent the need for human resource indicating necessary action
like recruitments need, training and development, succession or job re-assignment needs
and organization assignments. Specific needs provide the link between satisfied issues
relating to changing management conditions with the program planning aspects. A
specific program plan or the action step based on the forecast can be adopted as give
below: -
The role and the person must be matched for this, the various job requirements skills,
experience, intelligence, education and training have to be based as possible, on
systematic measurement and grading. Human qualities are difficult observation and
measurement. There should be effective scheme for systematic development of attitudes,
knowledge, skills and the behavior pattern required by an individual to bring more variety
and participation through job rotation enlargement or enrichment.
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I observed that this strategy is adopted in Ashok Leyland at Pantnagar plant while dealing
with Human Resource.
HRM AND PRODUCTIVITY
With the organization, effective HRM provides a means to satisfy the growing
expectation of employees and the employers in a manner that results in a motivated and
committed workforce with high productivity. The Human resource management comprise
the following activities:
Training and Development
Organization development
Planning of job design
Human resource planning
Selection and staffing
Union labor relation
The outcome of HRM, apart from an increase in productivity is an improved is the
quality of work life, enhanced satisfaction level and an overall preparedness for change.
HR PRESPETIVE
EMPLOYEE PROFILE
HR DEPARTMENT PROFILE
RESPONSIBILITY OF DEPARTMENT.
RESPONSIBILITY OF INDIVIDUAL.
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RECRUITMENT, SELECTION AND PLACEMENT
REMUNERATION AND OTHER ALLOWANCES AND FACILITIES
PROMOTION POLICY
PERFORMANCE APPRAISAL
WELFARE AMENITIES AND SOCIAL SECURITY SYSTEM.
EMPLOYEE ENGAGEMENT
UNIQUE HR PRACTICES
PRESENT TREND OF HR
EMPLOYEE PROFILE
Ashok Leyland follows the centralized recruitment procedures for the different
categories of employee and the executive are recruited from the head plant Ennore,
Tamilnadu., Pantnagar unit of Ashok Leyland recruits the temporary workman and
the engineers.
ENTRY LEVEL:
The entry level qualification of the workman category is that should have passed I.T.I
and for the engineers should have passed the B.E or other equivalents degree.
AVERAGE AGE:
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The average age of the employee at the Pantnagar unit, Ashok Leyland rages from
30-35 years of age.
MANPOWER:
CATEGORY UNIT MARKETING FINANCE SYSTEMS TOTAL
Executive 30 4 5 3 42
GET/DET 3 0 3
Staff 2 2
Workmen-
permanent
84 84
Workmen-
Temporary
198 198
Trade
Apprentice
40 40
Total 357 4 5 369
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The female ratio in the Pantnagar unit is 0.54% and the ratio between the temporary
workmen and the permanent workmen ranges 22.76% respectively. The trade apprentices
contribute around (40nos) about 10.84% to the total of 369 employees.
RESPONSIBILITIES OF DEPARTMENT
The Personnel & Administration department is responsible for:
Labour management, HRD activities statutory obligation, welfare activities
and other administrative functions
Provide appropriate required manpower for the work under different
department.
Organize/conduct training program as per training procedure.
Emphasize on the HODs to utilize the skill acquired/enhanced by the
concerned employee by giving sufficient opportunitities.
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RESPONSIBILITIES OF INDIVIDUAL
DY. MANAGER P&A
Report to unit head
(A) RESPONSIBLE FOR
Planning& Arranging for Human Resources.
Training &Human Resource Development.
General Administration & personnel function
(B) AUTHORITY
Recruitment of personnel up to unionized category
Arranging training programs up to CG-25 grade.
SR. EXECUTIVE PERSONNEL
(Mr. Abhijeet Brar)
TO ASSIST DY. MANAGER-P&A IN;
Planning and arranging for Human Resources.
Training & Human Resource Development.
General Administration & Personnel functions.
To improve continually on the functions relating to above.
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SELECTION & TRAINING OF PERSONNEL RECRUITMENT
SELECTION PROCEDURE
INDUCTION & TRAINING
SELECTION & TRAINING OF PERSONNEL
RECRUITMENT
Recruitment is the most important function. Logically the first step in the development of
an organization human resource activity is to acquire the people to operate the
organization. The manpower is not only required in the beginning, but it is also required
through out the company’s life. In Ashok Leyland the manpower is recruited for the
following reasons:
Changing need of the company.
The expansion of organization necessitate extra work force.
Rate of turnover due to voluntary quits, discharge, retirement etc.
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RECRUITMENT POLICY
In Ashok Leyland, the recruitment policy has the following characteristics;
A centralized recruitment procedure for different categories of employees.
It is flexible in nature so that it can meet the changing need of the organization.
Job analysis is highlighted.
Lays down the terms and conditions of employment.
The method of recruitment, both for internal and external recruitment.
SOURCES OF RECRUITMENT:
The company considers both types of sources of recruitment i.e. internal and external.
1. INTERNAL SOURCES:
Internal sources are the most obvious sources. These include human resource already on
the pay roll of the company. It is done through promotion, transfer or some time through
demotion. Some times applicants are informed about the decision as to whether they are
successful or not in aspiring new opening.
The internal recruitment is also done through sending the e-mail to all other units of
Ashok Leyland Ltd. From time to time and select the suitable candidate from these units.
The main advantage of this source of recruitment is that to improve morale, promotes
loyalty to result in economy in training cost.
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2. EXTERNAL SOURCE:
The external sources of recruitment meet the recruitments of workforce for all levels and
for all times. Under external source the work force is engaged from outside. The main
external sources of recruitments are following:
Advertisements.
Employment exchange
Campus recruitments in colleges, and institutions.
Factory gates.
Part time employees.
Labor contractors/ professional contracts.
SELECTION PROCEDURE
The object of human resource selection is to ascertain clearly the type of person required
and to secure an appropriate candidate for filling that position. In Ashok Leyland Ltd.
The following steps are taken in selection process:
After job analysis preparing job description and man specification.
Determining the source of recruitments.
Inviting the interview.
Conducting the interview.
Putting the applicants through tests, where it is necessary.
Checking the medical, physical examination of the applicant.
Induction and
Follow up.
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INDUCTION & TRAINING:
INDUCTION:
In Ashok Leyland Ltd. Once the employee is hired, an induction program is made up.
Induction is concerned with the problem of introducing or orienting a new employee
reports to personnel department for completing his joining formalities like filling up
nomination forms, gratuity form, Bio-data form etc. photocopies of all checking. The
period of induction is different for each category of employees.
TRAINING & DEVLOPMENT:
In Ashok Leyland Ltd., once an applicant is selected, he or she becomes its member, the
next duty is to place him/ her in the right job and provide him with training and
development facilities needed for him to fit in the present job as well as the future career
chalked out for such individual. The company has its own HRD center at CHENNAI for
imparting training to its officers. Outside training program are also attended by officers as
per requirement of their job. At the unit level in-house training program are also attended
by officers as per the requirements.
In PANTNAGAR, there is a separate department know as training center which imparts
education to raw hands for skilled jobs. “On the job training” is also giving to new
employees. Given below are various categories of trainees in Ashok Leyland Ltd.
PANTNAGAR:
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Engineering Trainees
Technician Trainees
Trade Apprentices
Company Trainees
Customer’s Trainees
The engineering trainees and technician trainees are recruited through campus
recruitment by corporate training and development department for entire organization and
training is give to them in all fields at various plants of the organization.
Trade Apprentices and company trainees are recruited at unit level and training is given
to them according to their prescribed syllabus, approved by the board of Technical
Education Uttarakhand and practical training is given to them on the shop floors.
Various state transport undertaking sends customer’s trainees, dealers of Ashok Leyland
Ltd. For imparting them practical training on the latest technology. The duration of this
training is 2 week. In Pantnagar plant, depending upon the category of trainees/
apprentices, total duration of training is designed to formulate modules as follows:
BASIC TRAINING:
For first 2/3 days, every trainee is engaged in Training center for basic training. In this
the trainees become familiarized about the company and about the following information:
The safety precautions
Industrial house keeping
Training guidelines
About Ashok Leyland Ltd. and its product range.
IN PLANT TRAINING:
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Under “in plant training or on the job training” the trainee is posted under supervisor
and he is supposed to do manual work for at least 8 hours per day. However a close
monitoring is done ensuring that he observes safety rules religiously.
For executive category of employees, training is give at Ashok Leyland Ltd’s plant
Ennore (Tamilnadu) and in Pantnagar plant also.
CLASSIFICATION OF EMPLOYEES IN ASHOK LEYLAND, PANTNAGAR
PERMANENT:
Permanent employee is one who has been engaged on a permanent basis and includes any
person who satisfactorily completed a probation period including breaks due to sickness,
accident, and leave. Lockout, strike and whose services have been confirmed in writing
by him in this behalf.
PROBATIONER:
A probationer is an employee who is provisionally employed to fill permanent vacancy in
a post. The period of probation is ordinarily six months, but period of probation can be
extended to another six month if the employee has not shown skill within six months.
TEMPORARY:
An employee who has been appointed for a limited period of time, which is essentially of
temporary nature.
CASUAL:
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An employee whose employment is of casual nature.
APPRENTICE:
A learner, who is or not paid an allowance during the period of his training including
apprentices under apprentices act, 1961.
REMUNERATION AND OTHER ALLOWANCES & FACILITIES
REMUNERATION
OTHER ALLOWANCES & FACILITIES
REMUNERATION AND OTHER ALLOWANCES & FACILITIES
REMUNERATION
SALARY AND WAGES:
Wage and salary administration is one of the vital areas of personnel administration.
Wages & salaries are perhaps the most important single element in the conditions of
employment. Organization morale cannot be maintained at high level without a fair,
equitable and sound remuneration program. Modern wage and salary administration is
very complex and sophisticated, requiring expertise and specialist knows how.
THE MINIMUM WAGES ACT, 1948
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Under the minimum wages act, 1948 appropriate government is empowered to fix the
minimum rate of wages payable to employees in all scheduled employment which
include employment in any woolen, carpet making, shawls, rice mill engineering industry
etc as well as employment under any local authority. The objective of the act was to
assure the employee not only physical subsistence as would be conductive to the general
health of public.
WAGES AND SALARY ADMINISTRATION IN PANTNAGAR:
Commencement and cessation of salary is explained in the company’s personnel policy,
which stipulates that an employee shall commence to draw the salary of a post to which
he/ she is appointed from the date he/she assumes to take the charge of the post.
For worker and staff, the wages and salary administration is attached local finance
department while for officers categories of employees, the responsibilities is given to pay
roll section of Chennai. The salary grade for staff and workers are given below:
WORKMAN REGULAR:
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GRADEPAY SCALE
Unskilled ‘B’ 820-2091
Unskilled ‘A’ 835-2435
Semiskilled ‘C’ 850-2300
semiskilled ‘B’ 870-2377
semiskilled ‘A’ 895-2665
skilled ‘C’ 935-2865
skilled ‘B’ 965-3055
skilled ‘A’ 995-3246
Highly skilled 1035-3285
STAFF CATEGORY:
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GRADEPAY SCALE
Driver 865-2509
Driver 1 900-2670
Clerk cum typist 1 930-3180
Clerk cum typist 11 965-3375
Steno typist 1000-3410
Office Assistant 1040-3770
For office category of the employees their salary structure is decided at corporate level
for the whole organization.
OTHER ALLOWANCES & FACILITIES
The Ashok Leyland Ltd. Pantnagar Company provides various facilities to their
employee. The main allowances and facilities at Pantnagar plant are following:
DEARNESS ALLOWNCE:
The existing rate of fixed D.A. being paid Rs.1956.25 as per sub clause 2.4 of the
agreement dated 15.05.2000 is revised to Rs. 2401.75 per month W.E.F. 30.04.2004.
HOUSE RENT ALLOWANCEES:
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The existing rate of fixed H.R.A. being paid Rs.765/- as per sub clause 2.7 of the
agreement dated 15.05.2000 is revised to Rs.1250/- per month w.e.f. 30.04.2004.
CONVEYANCE ALLOWANCE:
The existing rate of conveyance allowance being paid Rs.425/- as per sub clause 2.8 of
the agreement dated 15.05.2000 is revised to Rs.750/- per month w.e.f. 30.04.2004.
NIGHT SHIFT ALLOWANCE:
The existing rate of night shift allowance being paid Rs.4.00/- per day as per sub clause
2.10 of the agreement dated 15.05.2000 is revised to Rs.4.50 per night shift w.e.f.
30.04.2004.
WASHING ALLOWANCE:
The existing rate of Washing allowance currently being paid Rs.70.00/- per month as per
sub clause 2.11 of the agreement dated 15.05.2000 is revised to Rs.125.00 per night shift
w.e.f. 30.04.2004.
LUNCH ALLOWANCE:
The existing rate of lunch allowance being paid Rs.20/- as per sub clause 2.12 of the
agreement dated 15.05.2000 is revised to Rs.25/- per month w.e.f. 30.04.2004.
BONUS SCHEME:
The minimum rate of bonus is 8.33% and maximum rate is 20% under the payment of
bonus Act. The Ashok Leyland Ltd. Company fixed the bonus for the next three years
rs.5500, 6050 respectively effective from 30.04.2004
LEAVES & HOLIDAYS RULES:
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The regular employees (excluding apprentices/ casuals) are eligible for the following type
of leave:
Earned leave
Casual leave
Sick leave
National and festival holidays.
EARNED LEAVE:
Earned leave is computed taking in to the account the period of duty including leave with
pay , holidays the period of lay off , and absence on account of injury accident arising out
of and in the course of employment. For those governed by factories act the EL can be
accumulated up to maximum of 30 days.
CASUAL LEAVE:
Casual leave of 10 day for unionized category of employees and 7 days for others in a
year is allowed and it will be credited at the beginning of the same year.
SICK LEAVE:
At present, all unionized category of employee are covered under ESI, so no sick leave is
give to them. Executives are given 7 days leave in a year as sick leave, which can be
accumulated up to 49 days.
NATIONAL AND FESTIVAL HOLIDAYS:
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There shall be 12 festival/ national holidays with wages in a year. Out of these,3 shall be
National Holidays i.e. 26th January,15th August and 2nd October and the rest 9 days shall
be declared as festival holidays in consultation with union.
PROMOTION POLICY & PERFORMANCE APPRAISAL
Promotional Policy
Performance Appraisal
PROMOTION POLICY
PROMOTION
Promotion may be describe as an upward movement or advancement of an employee in
the organization to another job. The purpose of a promotion is to promote the staff to a
vacancy which in general is worth more to the organization than the incumbent’s present
position. However, promotion may involve one or more things such as increase in pay or
wages, better scale of pay, better status, designation and prestige, higher responsibilities
and challenges, authorities and span of control, higher sill and specialization, better
working conditions and facilities, better privileges and perks and place of location or
working hours etc.
PROMOTION POLICIES AT ASHOK LEYLAND
Ashok Leyland Ltd. Is a forward looking organization is committed to identify, train,
develop and sustain its human resources in such a manner as to integrate the individual
career aspirations of its executives with the fulfillment of the company’s objectives.
Towards this Ashok Leyland Ltd accepts basically a fair equitable and performance
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oriented promotion policy is the first consideration. In Ashok Leyland Ltd many
objectives are taken into considerations, some of them are following:-
That the growth opportunities of executives integrate with the fulfillment of the
company’s objectives.
To identify, train, develop, competent personnel with growth potential for high
level performance.
Company has recently introduced a fast leadership program (FLP) for young executive so
that they can b promoted as a future leader for the company at young age. Among them
the individual name is recommended by the concerned unit head based on his/her
performance. He/she has also cleared the competency test before putting his/her fast
leadership program.
In Ashok Leyland Ltd the promotion is fixed for the workman category of the employee,
as they are promoted time to time after certain period of interval. For other category of
the employee the different methods of promotion adopted, based on the following:
1. POTENTIAL APPRAISAL
Potential appraisal is done by the employee’s supervisor who has the opportunity t
observe the employee for some time. In the Pantnagar plant the appraisal report is done
by supervisor of every employee and on the basis of tat report the employee is promoted
for higher job.
2. EXPERIENCE
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In Ashok Leyland Ltd the promotion is based on the experience bases, the employee who
has more experience will be promoted for higher position. This type of promoted is
necessary to improve the morale of the employee.
3. MERIT
In Ashok Leyland Ltd the promotion is based on the merit also, the employee who has
more skill, knowledge and more competent will be promoted first as compared to other
employee. This type of promotion is out of turn but employee rise faster.
The promotion of any employee is done on the basis of above qualities, or on the
combination of all the above qualities.
PERFROMANCE APPRAISAL
In Ashok Leyland Ltd the following objectives are considered for the implementation of
performance system:
To notify the performance base of the company to the employee to ensure an objective
assessment of employees performance and potential on this performance appraisal to
establish an objective basis for the different level of performance and to identify
employee with potential to grow in the organization
To counsel the employee appropriately regarding their strength and weakness and assist
in developing them to realize their full potential in line with the company’s objective and
goal
PARAMETERS
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In Ashok Leyland Pantnagar the tool that is used for calculating the employees work
potential is 360-degre form of appraisal. 360 degree of appraisal is that the employee is
evaluated on all aspects around him such as the he has been evaluated by his immediate
supervisor, his friends, Head of Department, Personnel Department, etc. through the
appraisal the main objective is to find out the Key Resource Areas (KRA)
Five level of performance laid in the appraisal form the Pantnagar units is that :