Summer Project

PROJECT REPORT

ON

EMPLOYEE ENGAGEMENT

IN

LARSEN AND TOUBRO LTD , POWAI.

BY

KATHA PARAB

PGDM

(2011-2013)

FROM

Dr. V. N. BRIMS INSTITUTE OF MANAGEMENT STUDIES.

CHENDANI BUNDER ROAD,THANE 400 601.

INTODUCTION TO LARSEN AND TOUBRO Ltd.

L&T is a USD 11.7 billion leading engineering, construction, manufacturing and technology company with Global presence. It was founded in in the year 1938 by two Danish engineers, Mr. Henig Holk Larsen and Mr. Soren Kristen Toubro, as a partnership firm. A customer focus approach and the constant quest for top class quality have enable L&T sustain leadership in its prime markets. The company has manufacturing facilities in India and overseas location such as china, Oman and Saudi Arabia. Customer base include global majors in 30 countries.

At L&T ,they are drive by the vision to emerge as an Indian multinational conglomerate that enhances shareholder value system, a value system that comprises the timeless attributes of trust, ethics, honesty, and transparency. We reinforce the economic, natural, and social capitalof Indiain border and deeper way. Fulfilling their responsibility as a sensitivecorporate citizen.

VISSION...

1)L&T shall be a professionally managed Indian multinational, committed to total customer satisfaction and enhancing shareholder value.

2)L&T- ites shall be an innovative, interpreneurial and empowered team constantly creating value and attaining global benchmarks.

3)L&T shall foster a culture of caring, trust and continuous learning while meeting expectations of employees, stakeholders and society.

HISTORY OF THE ORGANISATION...

The company Started its work in hillocks of Powai. The evolution of L&T into the country’s largest engineering and construction organization is among the most remarkable success stories in Indian industries.

Larsen & Toubro Ltd was founded in Mumbai in 1993 by two Danish engineers. Henning Holk-Larsen and Soren Kristen Toubro schoolmates in Denmark, would not have dreamt, as they were learning about India in history classes that they would, one day, created history in that land. In 1938, the two friends to forgo the comfort of working in Europe, and started their own operation in India. All they had was a dream and the courage to dare. Their first office in Mumbai was so small that only one of the partners could use the office at a time. In the early years, they represented Danish equipments for dairy equipment for a modern retainer. However, the start of the second world war in 1939, imports were restricted, compelling then to start a small workshop to undertake jobs and provide services facilities. Germany’s invasion of Denmark in 1940 stopped supplier of Danish products. This crisis forced the partners to stand on their own feet and innovate. They started manufacturing dairy equipment indigenously. These proved to be a success and L&T came to be recognised as a reliable fabricator with high standards.

The wartime need to require and refit ships offered L&T an opportunity and led to the formation of new company, Hilda ltd. L&T also started two repair two repair and fabrication shops . the company had began to expand. The sudden internment of German engineers (because of war) who were to put up soda ash plant for the Tatas, gave L&T a chance to enter the field of installation-an area where their capability became well respected in 1944, ECC of L&T incorporated.

Around then, L&T decided to build a portfolio of foreign collaboration, by 1945, the company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils, biscuits, soaps, glass. In 1945, L&T signed an agreement with Caterpillar Tractor Company, USA, for marketing earthmoving equipment. At the end of the war, large numbers of war-surplus Caterpillar equipment were available at attractive prices, but the finance required was beyond the capacity of the partners. This promoted then to raise additional equity capital, and on 7th February 1946, Larsen & Toubro Private limited was born. Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidated and expert. Offices were set up in Kolkata, Chennai and New Delhi. In 1948, fifty-five acres of undeveloped marsh and jungle was acquired in Powai. Today Powai stands as a tribute to the vision of the men who transformed this uninhabitable swap into a manufacturing landmark. In December 1950, L&T became public Ltd company with a paid capital of 2million.The sales turnover was Rs.10.9 million.

Prestigious orders executed by the company during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela steel plant with the successful completion of these jobs, L&T emerged as the largest erection in the country. In 1956, a major part of the company’s Mumbai office moved to ICI House in ballard Estate.

Different independent companies of L&T

1)Infrastructure IC

2) Heavy engineerin IC

3) Hydrocarbon IC

4) Electrical and Automation IC

5) Building and Factories IC

6) L&T Power

7) Machinery and Industrial Products IC

8) Power Transmission and Distribution IC

9) Metallurgical and Material Handling IC

Infrastructure IC

The infrastructure IC undertakes construction of heavy Civil projects through four strategic business units, meeting international standards of quality. EPC service are offered for transportation infrastructure projects as well as hydel and nuclear power projects.

Heavy Engineering IC

Heavy engineering IC is one of the world’s leading manufacturer of the technology intensive, custom- made equipment & system for core sectors as a refinery, petrochemical, fertiliser, chemical, oil & gas , power (thermal & nuclear) as well as shipbuilding, defence and aerospace.

Hydrocarbon IC

The hydrocarbon IC delivers the design to build world class engineering and construction solution on trunkey basis in oil & gas, and petroleum refining, chemicals & petrochemicals and fertilisers sectors.

Electrical and Automation IC

Electrical & Automation IC designs, manufactures and market low and medium- voltage switchgear, switchboards, control and automation systems, meeting and protection system and medical equipment.

Building and Factories IC

The building & Factories IC is equipped with the domain knowledge, requisite expertise and wide-ranging experience to undertake Engineering, procurement and Construction (EPC) of all types of building and factory structures.

L&T Power

L&T power is an Independent Company (IC) of Larsen &Toubro, with a mandate to integrate L&T’s varied offering in the thermal power sector.

Machinery and Industrial products IC

Machinery and industrial Product IC caters to the needs of Industrial Machinery, Construction equipment and Industrial product business segments.

Power Transaction and Distribution IC

The power transaction & distribution IC project offer design and construction service for all types of industrial and project electrification works as well as for the power transmission works as well as for the power transmission and distribution project in the domestic markets.

Metallurgical and Material handling IC

MMH undertakes trunkey construction contracts for projects in mineral & metals sector, Bulk material Handling and utilities Projects. It is a leader in all its area of operations.

Powai General Management (PGM)

Powai General Management basically provide following services to their internal customers. Powai General Management PGM is in existence since the very inception of L&T Powai. The main objective of PGM is to provide common services which are required of all ODS of L&T Specially at Powai Over the decades the nature of activities, the number of employees, systems and procedure used etc. Has grown in size and complexity.

L&T is embarking on a major restructuring exercise aimed of sharpening is competitive in the global scenario by grouping its business under 15 verticals. This is done in order to provide focus to each business division to ensure their competitiveness at global level.

The PGM Group of L&T provides a variety of services to various business groups. Subsidiary and associate companies and head office (HO) department located at powai.

The mission of PGM is :

“We shall strive to build a vibrant workplace with world class infrastructure and service to enhance L&T competitiveness.”

Powai general management.

Andheri health center.

Central Material Department.

Corporate social initiatives.

Housekeeping cells.

Central Architecture Department.

Powai Canteen Services.

Powai Central Stores.

Powai Communication and Mail room.

Powai facilities planing & execution.

Powai electrical services & Air conditioning.

Powai Estate Management.

Powai medical and welfare services.

Powai safety co-ordination.

Powai security services.

Powai work personnel.

The PGM services can be broadly categorized as under:

Electrical and A/c.

Energy conservation measures.

Maintenance and Housekeeping.

Response to services call.

Water conservation Initiatives.

Materials.

Housekeeping and Garden Maintainance.

Corporate social responsibilities.

Sustainability.

Media.

Labour and IR (PWP)

Employee welfare.

Safety.

Security.

Canteen.

Transportation.

Powai Work Personnel.(PWP)

At Larsen and Toubro the Powai work personnel are responsible for training of daily rated as well as Powai General Management. Employees time keeping for all powai based employees and wage administration for all daily rated employees annual reward for daily and monthly rated employees.

Scope of PWP.

Behavioural training for daily rated and PGM employees.

Time Keeping for all powai based employees.

Wage administration for daily rated employees.

Recruitment, staff administration and Human resource management.

PWP STRUCTURE.

D. C. Mandlik.

Vice President.

D. U. Menon.

HEAD PWP

S. G. Jadhav.

General Manager

_________________________________________________________________________________

P. S. Patil Pranab Das. H.S. Gadgil. V. R. Shanbagh.

R. R. Karandikar. & R. C. Kasbe.

Functioning of PWP Department:

The major functions of PWP department are given below.

1)Time Keeping and wage administration for daily rated and time keeping of monthly rated employees

2) Maintainance of personal folders and annual appraisal of daily rated and monthly rated.

3) Recruitment of employees from Larsen & Toubro marketing network (LTMN).

4) Post recruitment formalities of all at Powai including issuance of bus pass and identity card.

5) Bonus and income tax related employees.

6) Statutory compliances under relevant labour laws.

7) Training of daily rated employees.

8) Training initiatives for PGM employees.

9) Grievance handling.

10) Long term settlements with the union which is an agreement for 3 to 4 years that is signed by 2 members from the union and its witness which is signed in the presence of the consolation officer.

11) Labour disputes are handled by either mutual negotiation or by the court.

12) Annual social gathering with regard to design , concept & execution.

13) Recruitment of daily rated workman.

14) Workmen’s compensation and group insurance scheme in case of industrial accidents.

15) Contract labour administration.

16) Process owner of classroom training at daily rated employees.

17) Periodic publication of IR insight (An inhouse Magzine an latest development in Idustrial Relations across the globe.)

18) Design and co-ordination of IR council meets.

19) Administration of trade apprentices.

20) Owner in content of activities related to work committee for promoting and maintaining good industrial relations between workers and management.

21)Labour Legislation :- handling court matters with regard to labour disputes.

22) Candidates interacting with the union for maintaining Industrial Relations.

23) Liaison and representation before various statutory bodies including employer organisations.

24) Disciplinary actions & Domestic enquires.

Employee Engagement

Policies and practices supporting employee engagement, handling of people issues by line and HR, recognised rights and responsibilities of individual and in case of existence of union / value / policy based interface with unions.

L&T has been in operation for over more than 70 years. In due course of time, It has adopted various policies and implemented various policies that aids in making the work environment more conducive. Event at times, it never backed away in making changes in the policies and practise to adapt to changing economic and political climate. So L&T as a company can has employee friendly policies and practices which have been in place for years together and which were being readily adopted by the employees / workers.

There are practices, which are being followed in order to take care for employee engagement. Few of such practises can bee stated as follows:

Career advancement / improvement opportunities.

L&T gives lot of importance to career growth and thus places a lot of stress on training and development in order to equip the employees with various skill sets so as to make them ready for talking new responsibilities and climb career ladder higher and higher. Other than the training program, the company gives the employees a freedom to work in their own desired way. This enables the employee to find smarter ways of doing work which in the end aids in enhanced productivity.

It has been noted that every plant improvement were being made outside the suggestion system, where employees initiated changes in order to ready the bonuses generated by the subsequent cost savings.

Regular feedback and dialogue with the supervisors.

L&T believes that regular feedback is the key to giving employees a scense of where they are going and a regular dialogue with the superior makes the employee understand that every individual is being valued. Employees engagement is a direct reflection of how employee feel about the relationship with the boss. So an open door policy helps in a direct engagement between the employees and their superiors which helps in maintaining a healthy relationship between the peers and the sub-ordinates.

Reward to engage.

An incentive to reward good work is a tiered and test way of boosting staff morale and enhancing engagement. L&T has adopted lots of strategies to ensure that the incentive scheme hits the mark with the workforce such as : setting realistic targets, selecting the rights rewards for the incentive programme, communication the effectively and frequently, having lots of winners and reward all achievers encouraging sustained efforts, present awards publicly and evaluate the incentive scheme regularly etc. So be it attendance or long services employees are rewarded in every possible way to make them value the smallest of their efforts which help in adding value to company.

Suggestion in Designing Training programme for workers.

The line managers play an important role in skill building and the growth of workmen. Training modules for the workmen are being designed in consultation with the line managers. Appropriate brief with regard to the business plan and manufacturing plan is taken from the line manager. In line with the same discussion are done with the concerned line manager in term of the mode and contents of the program. These training programs are conducted under one theme which is consistent for a particular period. Some of the titles of the are mentioned below.

Utsah.

Chaitanya.

Utkarsh.

Naveen Ahwane.

Sanjeevani.

For example: In the beginning, the productivity was good and the industry was flourishing, and the module designed was “Utkarsh”, which was a synonym to the growth productivity. But by the end the economy faced the recession, and the productivity was decline. Here the line manager were instrumental in suggestion ideas for redefining the module of training programs, which was named “New challenges” which helped in keeping the worker well motivated and taught them how to cope up with the economic down turn. On similar lines , last year new module of training was launched , which emphasized on “spiritual” training. The contents of these various modules of the training programme include work ethics, global workmanship, flexibility, value addition, cost management initiative, innovation and creativity etc.

Employee communication processes.

Newsletter from other departments.

The in-house magazines ,“Powai Pageant” is published once in 3 months and is an important channel for communication. This magazines brief up the reader with the latest happening in and around the company’s. It includes news from various activities, welfare programs, medical camps, long service award recipients, achievements by children, retirements and obituaries, various training programs and other initiatives. It also gives details of award and acclamation bestowed to the company or its employees. This in-house magazine is also published in Marathi. Other than the in-house magazine, there is “The L&T-ites”. which is also published quarterly and is circulated across al the branched in company. It gives the employees the latest thing happening in the company. These quarterly magazines are one of the important medium of communication across the company.

Customer Dialogue Week.

Customer dialogue week is carried out annually at Powai campus. Feedback with regard to service level, areas of improvement, new requirement is obtained from the internal customers. A structure based on several different parameters is administered for a pre decided sample/population. Industrial relation climate is one of the items in this CDW survey. After the responses from internal customer are obtained analysis with regard to rating on scale of 1 to 10 is done. The CDW also capture the qualitative comments obtained from the key customers. The findings of the survey are then shared with the management, owner department and the employees. Subsequent to this each department creates an action plan which addresses the issue of enhancing department score, catering to new requirement of customer and also effecting improvement wherever possible and feasible. Till date about 8 CDW survey have been conducted in the campus. This tool has been instrumented in enhancing overall service levels and delighting the internal customers.

Besides this notice, department meeting, meeting with the union committee members and the shop representatives are some other platform of communication. The suggestion scheme, culture building training programs, employees satisfaction survey are the channels of upward communication. Open house are also conducted at regular intervals and have been effective models of communication at L&T. Most of these open houses have concluded in formation of voluntary groups where employees cutting across designation and function work together and strive towards making L&T a better place to work.

Workmen training

The name L&T is synonymous with the learning & training L&T invest quite heavily in the learning of its employees and to train them in order to quick adept to the changing environment. The objective of all training initiatives in our is two fold:

1)Building a culture.

2)Transforming people.

History has shown that training is a key for transformation. The rule has not changed, only the tools have changed. With the time, the ways of learning and the technique might have gone through changes, but still it held the key to one’s transformation and growth . Just to elaborate further, the essence of training in L&T revolves around:

1)Integrated approach of learning.

2)Value addition.

3)Building a participative work culture.

4)Unlocking full potential of employees.

5)Process Improvement.

6) Faster responses to the changes in the external environment.

7)Obtain mobility/flexibility.

8)Encourage team work.

9)Involvement of employees.

10)Continuous improvement.

All training programmes for the workers are grouped under one training module .such a training module is designed once in every two years. The design of the training module is planned with keeping an eye on the changing work environment and the fluctuating world market. After the turmoil that the economy went through due to the economic meltdown, there was a need felt to recharge rejuvenate the mind, body and spirit in relation to the workplace. With this objective in mind the SANJEEVANI module was conceptualized.

Name of the programme conducted...

1)Art of living.

2)Meri pechan.

3)retirement Planing.

4)Sanjeevani-Brahma Kumari.

5)Sanjeevani- Jeevan Vidya.

6)Smile-Art of self healing.

Encouraging employees in volunteering in CSR activities or other community service activities.

The company is strongly committed to fulfilling social obligation of conducting business. The support various community welfare programme in health –care, environment and rural development. Across the company, there is total commitment towards environment protection, implementation of safety measures and conservation of natural resources. And so the company urges its employees to take part in CSR and other community service activities. Over 120 employees volunteers, work regularly in and around Mumbai campus for community service activities. The CSI (corporate social initiative) cell of L&T looks after all the CSR initiatives, activities and programs for the social cause. The CSI cell is being helped by employee volunteers in the planning conducting various social activities like.

1)In-house AIDS awareness programs.

2)Activities that support education like supply of educational materials, teaching aids, recreational tools and up scaling school infrastructure.

3)Summer camps, Maths coaching, providing facilities like science laboratories, scholarship to deserving student etc.

4)Blood donation camps, Tree plantation drive etc..

L&T has honoured for making the “2nd highest employee contribution” to Standard Chartered Mumbai Marathon Corporate Challenge – 2011. The employee of the company ran in the Mumbai Marathon, Promoting a social cause- Awareness for cancer.

L&T’s CSR honoured with “Golden Peacock Global CSR award 2011”.L&T was selected in the category of “Top Performer award” for its accomplishment in the large enterprise segment. The award honours the company’s commitment towards community welfare and social development.

Involvement of family.

For a good performance of the company, it is very much essential that the employee perform well too. And to achieve this, it is very important to keep a stress less and focused mind. And in present times, maintaining a work life balance while giving a very good performance. So in order to help the employees in maintaining a good work life balance and to bring company closer to the families of the employee, the company has taken many initiatives and conducted many programs.

Powai Darshan:

Family members of workers (greater than 18years of age) are invited to visit the Powai campus. They get the chance to see the workplace of the workers and in a way it connects the work life & home life of the workers. It strengthens the relationship between the families and the companies. They were made aware of all the working conditions and how the manufacturing is done. Even they informed about the safety norms followed in the company in order to make them realize that working environments is very safe and employee friendly. In a way this program helps in maintaining a better work – life balance for the employees by bringing the personal and professional life on the same platform and strengthening the bond between the worker’s family and the company.

Annual Social Gathering:

Annual social Gathering is a yearly event which is aimed at increasing the harmony amongst the worker also bring the worker family closer to the company as well as to each other. It is organised at mass level where the employees , irrespective of management or unionised, come together. chocolates and sweet boxes are distributed among the employees. The families of workers get an opportunity to be a part of the gathering of the company and thus it strengthen the bonds between the family and company. Also 5 show/drama are organized during this periods. The employees can come along with there families and watch any of the 5 shows. It is a great opportunity for workers family to gel with the other families . The social gathering gives an opportunity to the employees to enhance their social quotient and in way increase the harmony amongst the workers. It not only makes the workers and their families feel belongingness towards the company but also promotes spirit of togetherness. The works committee organizes the annual social gathering .This event generates a sense of belongingness and a spirit of brotherhood among the employees.

Contribution to employee wellness & work life balance.

Health workshops and campaigns:

A number of health workshops are being organised along with various types of counselling session sin order to take care of physical and mental stress of the employees. The working environment, over time, long hours of toil, the work pressure, peer pressure , family pressure, changing weather and many other things lead to mental, physical and social health issues. So these health workshops and campaigns along with counselling activities are conducted in order to answer the stress issues of the employees and to take care of their mental and physical wellness.

Yoga classes...

Regular yoga classes for employees were conducted which special yoga classes for obsessed employees and employees suffering from backache and jointpain, heart ailment & hypertension, chronic respiratory disorders. Also initiated executive batch for office staff where more emphasis was given on sedentary life style.