SUMMER TRAINING PROJECT ON HUMAN RESOURCE

CHAPTER – 1

1.1 INTRODUCTION

The term 'human resources' as used in organizations describes the

workforce capacity available to devote to the achievement of organization’s

objectives. The subject has drawn upon concepts developed in

industrial/organizational psychology and system theory. Human resources

has at least two related interpretations depending on context. The original

usage derives from political economy and economics, where it was

traditionally called labor, one of four factors of production. This perspective

has shifted as a consequence of further ongoing research into more applied

approaches. The subject has expanded to 'Human Resources Development',

also called Investment in Human Capital. Such development may apply to

individuals within an organization or applied beyond the level of the

organization to that of industry sectors and nations.

1.1.1 Human resources purpose and role

In simple terms, an organization's human resource management

strategy should maximize return on investment in the organization's human

capital and minimize financial risk. Human Resources seeks to achieve this

by aligning the supply of skilled and qualified individuals and the capabilities

of the current workforce, with the organization's ongoing and future business

plans and requirements to maximize return on investment and secure future

survival and success. In ensuring such objectives are achieved, the human

resource function purpose in this context is to implement the organization's

human resource requirements effectively but also pragmatically, taking

account of legal, ethical and as far as is practical in a manner that retains

the support and respect of the workforce.

1

1.1.2 Key functions

Human Resources may set strategies and develop policies, standards,

systems, and processes that implement these strategies in a whole range of

areas. The following are typical of a wide range of organizations:

Recruitment, selection, and on boarding (resourcing)

Organizational design and development

Business transformation and change management

Performance, conduct and behavior management

Industrial and employee relations

Human resources (workforce) analysis and workforce personnel data

management

Compensation, rewards, and benefits management

Training and development (learning management)

Implementation of such policies, processes or standards may be

directly managed by the HR function itself, or the function may indirectly

supervise the implementation of such activities by managers, other business

functions or via third-party external partner organizations.

1.1.3 Human resources management trends and influences

In organizations, it is important to determine both current and future

organizational requirements for both core employees and the contingent

workforce in terms of their skills/technical abilities, competencies, flexibility

etc. The analysis requires consideration of the internal and external factors

that can have an effect on the resourcing, development, motivation and

retention of employees and other workers.

External factors are those largely out-with the control of the

organization. These include issues such as economic climate and current and

future labor market trends (e.g., skills, education level, government

investment into industries etc.). On the other hand, internal influences are

2

broadly controlled by the organization to predict, determine, and monitor—

for example—the organizational culture, underpinned by management style,

environmental climate, and the approach to ethical and corporate social

responsibilities.

1.1.4 Framework

Human Resources Development is a framework for the expansion of

human capital within an organization or (in new approaches) a municipality,

region, or nation. Human Resources Development is a combination of

training and education, in a broad context of adequate health and

employment policies that ensures the continual improvement and growth of

the individual, the organization, and the national human resourcefulness.

Adam Smith states, “The capacities of individuals depended on their access

to education”. Human Resources Development is the medium that drives the

process between training and learning in a broadly fostering environment.

Human Resources Development is not a defined object, but a series of

organized processes, “with a specific learning objective”. Within a national

context, it becomes a strategic approach to intersectoral linkages between

health, education and employment.

1.1.5 Structure

Human Resources Development is the structure that allows for

individual development, potentially satisfying the organization's, or the

nation's goals. Development of the individual benefits the individual, the

organization—and the nation and its citizens. In the corporate vision, the

Human Resources Development framework views employee as an asset to

the enterprise, whose value is enhanced by development, "Its primary focus

is on growth and employee development & emphasizes developing individual

potential and skills" Human Resources Development in this treatment can be

in-room group training, tertiary or vocational courses or mentoring and

coaching by senior employees with the aim for a desired outcome that

develops the individual's performance. At the level of a national strategy, it

3

can be a broad intersectoral approach to fostering creative contributions to

national productivity.

1.1.6 Training

At the organizational level, a successful Human Resources

Development program prepares the individual to undertake a higher level of

work, "organized learning over a given period of time, to provide the

possibility of performance change". In these settings, Human Resources

Development is the framework that focuses on the organizations

competencies at the first stage, training, and then developing the employee,

through education, to satisfy the organizations long-term needs and the

individuals’ career goals and employee value to their present and future

employers. Human Resources Development can be defined simply as

developing the most important section of any business, its human resource,

by attaining or upgrading employee skills and attitudes at all levels to

maximize enterprise effectiveness. The people within an organization are its

human resource. Human Resources Development from a business

perspective is not entirely focused on the individual's growth and

development, "development occurs to enhance the organization's value, not

solely for individual improvement. Individual education and development is a

tool and a means to an end, not the end goal itself" .The broader concept of

national and more strategic attention to the development of human

resources is beginning to emerge as newly independent countries face

strong competition for their skilled professionals and the accompanying

brain-drain they experience.

1.1.7 Recruitment

Employee recruitment forms a major part of an organization's overall

resourcing strategies, which identify and secure people needed for the

4

organization to survive and succeed in the short to medium-term.

Recruitment activities need to be responsive to the ever-increasingly

competitive market to secure suitably qualified and capable recruits at all

levels. To be effective these initiatives need to include how and when to

source the best recruits internally or externally. Common to the success of

either are; well-defined organizational structures with sound job design,

robust task and person specification and versatile selection processes,

reward, employment relations and human resource policies, underpinned by

a commitment for strong employer branding and employee engagement and

on boarding strategies.

Internal recruitment can provide the most cost-effective source for

recruits if the potential of the existing pool of employees has been enhanced

through training, development and other performance-enhancing activities

such as performance appraisal, succession planning and development

centers to review performance and assess employee development needs and

promotional potential.

Increasingly, securing the best quality candidates for almost all

organizations relies, at least occasionally if not substantially, on external

recruitment methods. Rapidly changing business models demand skill and

experience that cannot be sourced or rapidly enough developed from the

existing employee base. It would be unusual for an organization to undertake

all aspects of the recruitment process without support from third-party

dedicated recruitment firms. This may involve a range of support services,

such as; provision of CVs or resumes, identifying recruitment media,

advertisement design and media placement for job vacancies, candidate

response handling, short listing, conducting aptitude testing, preliminary

interviews or reference and qualification verification. Typically, small

organizations may not have in-house resources or, in common with larger

organizations, may not possess the particular skill-set required to undertake

a specific recruitment assignment. Where requirements arise, these are

referred on an ad hoc basis to government job centers or commercially run

employment agencies.

5

Except in sectors where high-volume recruitment is the norm, an

organization faced with sudden, unexpected requirements for an unusually

large number of new recruits often delegate the task to a specialist external

recruiter. Sourcing executive-level and senior management as well as the

acquisition of scarce or ‘high-potential’ recruits has been a long-established

market serviced by a wide range of ‘search and selection’ or ‘headhunting’

consultancies, which typically form long-standing relationships with their

client organizations. Finally, certain organizations with sophisticated HR

practices have identified there is a strategic advantage in outsourcing

complete responsibility for all workforce procurement to one or more third-

party recruitment agencies or consultancies. In the most sophisticated of

these arrangements the external recruitment services provider may not only

physically locate, or ‘embed’, their resourcing team(s) in the client

organization's offices, but work in tandem with the senior human resource

management team in developing the longer-term HR resourcing strategy and

plan.

1.1.8Other considerations

Despite its more everyday use terms such as "human resources" and

similarly "human capital" continue to be perceived negatively and maybe

considered an insulting of people. They create the impression that people

are merely commodities, like office machines or vehicles, despite assurances

to the contrary.

Modern analysis emphasizes that human beings are not "commodities"

or "resources", but are creative and social beings in a productive enterprise.

The 2000 revision of ISO 9001 in contrast requires identifying the processes,

their sequence and interaction, and to define and communicate

responsibilities and authorities. In general, heavily unionized nations such as

France and Germany have adopted and encouraged such approaches. The

International Labour Organization also in 2001 decided to revisit, and revise

its 1975 Recommendation 150 on Human Resources Development. One view

6

of these trends is that a strong social consensus on political economy and a

good social welfare system facilitates labor mobility and tends to make the

entire economy more productive, as labor can develop skills and experience

in various ways, and move from one enterprise to another with little

controversy or difficulty in adapting. Another view is that governments

should become more aware of their national role in facilitating human

resources development across all sectors.

1.2 SCOPE OF THE STUDY:

The scope of the study is confined to a single unit that is LARSEN &

TOUBRO LIMITED, KANSBAHAL WORKS. To draw a broader conclusion on the

study, the researcher has gone for an intensive study on the areas of HRM &

IR function in the company. This includes-

i. To study the origin & growth of organization & all activity in details.

ii. To study the HR practices prevailing in the organization.

1.3 OBJECTIVE OF THE STUDY

The present research is taken up with following objectives:

i. To present clear picture of the existing HRD practices in the

organizations & their impact on employees.

ii. To find out the extent to which the corporate strategy as reflected in

the company’s HRD polices & Practices which has been successful in

achieving the organizational goals of employees.

1.4 IMPORTANCE OF THE STUDY:

7

The present study has been organized as an academic requirement as

a partial fulfillment of the master degree in I.R. & P.M.. The students are

required to undertake project work for a period of one month and to submit

dissertations to the affect. Beside other purpose behind study:

i. To make the student acquired with the involved in the industrial

organization.

ii. Practice is different from theory: practice will increase the knowledge

and skill as well as the experience of the student. So by gaining

theoretical knowledge from class room and practice knowledge

through the work study a student will internship all that are fight in a

class room.

In the changing scenario, the need and maintenance of proper

discipline hold great impact in the ultimate goal of the organization.

1.5 METHODOLOGY

Methodology is highly essential in the field of social research, while

selecting these methods what should be kept in mind is that these must be

based on a scientific approach. It refers to the matters or techniques used in

the research process or conducting investigation systematically. Methods of

data collection require observation of facts and collection of data. Hence, the

scholar has adopted the following methods of social research.

1.5.1 Historical method

This method is adopted by the researcher in order to study the history

of the organization and also various development of the organization since

its inception till the day of study.

1.5.2 Case study method

8

This method is more intensive in nature and the potency to have fair

ideas on various accepts. Here the entire unit under the study has been

taken as a case and an in depth study covering all related aspects

undertaken.

1.5.3 Statistical Method

This method is used to obtain statistical information about quantity of

production, financial position, man power position, sales turn over, strike,

work stoppage etc.

1.5.4 Survey method

The survey method has been adopted to survey the opinions and

attitudes of management and worker towards the welfare facilities and

indicates the study of organization phenomenon of the company.

1.6 SOURCE OF DATA COLLECTION

Collection of data requires systematic observation of fact. There are

two sources of data collection. They are –

a) Primary source

The primary sources are

Schedule

Interviews

Questionnaires

Observations.

b) Secondary source

The Secondary sources are

Booklets

Magazines

Office records

9

Files

Wage charts

Journals.

1.7 TOOLS AND TECNIQUES

For the collection of data from management or executives schedule

has been used. Questionnaires are used personally by the researcher

followed with non participative observation for workers and their

representative.

1.8 MODE OF ANALYSIS

A discriminate accumulation of facts do not lead to conclusion but to

confusion. The end result of factory visit was the accumulation of data

quantitatively. These data are analyzed, classified and tabulated. Various

techniques of classification and tabulation are made.

1.9 CHAPTERISATION

The following chapters are designed basing upon the classification and

analysis of the data and arranged in logical sequence for the clarity of

presentation.

Chapter 1 – introduction, concept, importance, methodology and

limitations. Chapter 2 – history of the organization, location, raw materials,

production process, organization structure, manpower position and

distribution, etc. Chapter 3 – structure and function of the personnel

department. Chapter 4 – HR practices at L&T Kansbahal. Chapter 5 – over

view of the study. Chapter 6 – brief summary followed by conclusion and a

few suggestion.

10

1.10 Limitations OF THE STUDY

Like the other social research work, the present study equally suffers from

some limitations. The researcher faced mainly the following limitations

during her study at L&T Kansbahal Works:-

1. Sometimes the management was reluctant to show some records as it

was confidential

2. The management was not able to spare much time for interview and

discussion due to their professional engagement.

3. Moreover, the study was conducted within a short duration of time that

is only for one month. Whereby it is not possible to complete a study of

this kind which has a vast area in itself. so this short time was also

another limitation to this study.

Inspite of all such above limitations the researchers tried her best to come

out with a objective and bias free project report on important aspect of

human resource practices at L&T Kansbahal Works Ltd.

11

CHAPTER - 2

2.1 Brief Company Background

Larsen & Toubro Limited (L&T), India’s largest engineering,

technology and Construction Company. L&T is a USD 9.8 billion company

with global operation. It is one of the largest and most respected companies

in India’s private sector. The company was founded in Bombay (Mumbai) in

1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian

Toubro - both of whom were strongly committed to developing India’s

engineering talent and enabling it to meet the demands of industry. Today,

the company sets engineering benchmarks in terms of scale and complexity.

The core competencies of the company are: -

Engineering & Construction – Projects

Heavy Engineering

Construction

Electrical & Electronics Equipments

Information Technology

Machinery & Industrial Products

Corporate Social Responsibility

At present Larsen & Toubro Limited (L&T) employing 26,000 people

across its 130 offices & 30 factories all over the world. Its major

12

manufacturing units are located at Mumbai, Bangalore, Coimbatore,

Chennai, Ahmedabad, Baroda, Kansbahal, Delhi, Kolkata and many places of

India.

2.2 GEOGRAPHICAL LOCATION:

Kansbahal located in the western part of Odisa, about 25 kms. away

from Rourkela. It was a small village in early 60’s has developed into a small

township and surrounded by eye catching greenery, situated on the

backdrops of beautiful hills. It is well connected with other parts of the state

with the state highway number – 10 connecting Rourkela-sambalpur, just 20

kms from Rourkela.

2.3 NEAREST RAILWAY STATION:

On Howrah-Mumbai Rail route (SE Railway)

Kansbahal Railway station- 2kms

Rourkela Railway station- 25kms

Rajgangpur Railway station- 12kms

2.4 BUS STATION:

On express high way linking Rourkela to Bhubaneswar or Cuttack via

Sambalpur.

2.5 NEAREST AIRPORT:

Kolkata- 1 night journey (450 kms)

Bhubaneswar-1 night journey (450 kms)

13

2.6 Kansbahal Works – An overview

Established in 1938, L&T - Kansbahal Works, a unit under the

Machinery & Industrial Products Division of L&T, is a world class integrated

Machine Building centre with facilities for Castings, Fabrication, Machining

and Assembly shop complimented by design, engineering, quality control

and logistics support.

(L&T – Kansbahal Works, State: - Orissa, India - 770034)

14

2.7 vision and mission

15

16

L&T LimitedKansbahal Works

MISSION 2020

TO BECOME a dominant global player in Crushing and Screening Equipment and Wind mill castings

with

Profitable presence in all major world markets

Globally bench marked products and technology

A place among the top 3 terms of market share

2.8 Company Policy (Business, Safety, and Environment)

The company Integrated Management System Policy is given below:

17

We shall design, manufacture and supply industrial machinery and their components/spare that meet or exceed customer requirements.

We shall strive to perform task free of defects on time, every time and enhance customer satisfaction through service before and after sales.

We shall confirm to the applicable OH&S legislation and create working conditions that prevent the risk of accidents, incidents, injure and ill-health.

We shall abide by the regulation for environmental protection, conserve natural resource and reduce pollution due to our operations.

We shall above all strive for continual improvement in all our endeavors

2.9 Foundry Business unit

L&T’s only foundry facility is located at Kansbahal and is equipped with

the latest state-of-the-art facilities to manufacture quality castings in steel,

alloy iron, cast iron, with intricate geometries and large tonnages. It have

complete in-house facilities like technology centre, pattern shop, machine

moulding, heat treatment facilities, melting furnaces and complete QA tools.

The plant capacity and range of products are: -

2.9.1Casting Capacity

Hand Moulding: - 3000 T

Cylinder Moulding: - 500 T

Machine Moulding: - 500 T

2.9.2Casting Range – Few Kilos to 22 tons in single piece

Steel: - 12 T

Alloy Iron: - 15 T

SG / Cast Iron: - 22 T

2.9.3Cast Products

Wear Resistant Grinding Elements

Impact Resistant Manganese Steel Castings

Low Alloy High Strength Steel Castings

Spheroidal Graphite and Grey Iron Castings

General Purpose Carbon and Alloy Steel Castings

2.9.4Quality Accreditation

18

ISO – 2001, 1400, OSHAS: 1800 certified by DNV

TUV for pressure tested castings

CBB (Central Boiler Board) as “Well known Foundry”

(Melting Shop)

(Continuous Sand Mixer)

19

At foundry, L&T Kansbahal manufactures a large range of

components for Wind Mills. It specializes in manufacturing ready-to-fit

components for Wind Turbine Generators in SG iron.

Some of the castings, which are used in windmills & manufactured by

it, are given below:

20

2.9.5Fabrication shop

L&T – Kansbahal works fabrication shop is equipped with the latest

state-of-the-art facilities to manufacture fabricated job up to 100 tons

capacity. It covers 9760 sq.mtr of floor area and maximum gantry height is

16 meter. The major fabrication jobs carried-out are surface minor, TLC,

Crushers, and Impactors. The manufacturing facilities of fabrication shop are:

Description Capacity

CNC Profile Cutting Machine X-5.26 M, Y-25 m & Max. Thk - 300mm

Pug Portable Cutting Machine Max. thickness – 50 mm (MS)

Plasma Cutting Machine Max. thickness – 60 mm (SS)

Shearing Machine 10 mm x 2100 mm Max.

Rolling / Bending Machine 100 mm x 700 mm Max. & ID = 3000 mm

Folding Machine 4 mm x 2500 mm Max

Hydraulic Press 500 T / 300 T

Surface Minor is in operation at coal mines

21

2.9.6Machine Shop

Machine Shop is equipped with a wide range of machines for Turning

(upto 3.5 m dia x 10 m long) , Boring (10 m x 5 m x 2.2 m with 65 T table

capacity), Cylinder Grinding (2.5 m dia x 10 m long) and Planning (2 m x 1.6

m x 6 m) of complex welded structures/ castings / forging.

Machine Capacity

Horizontal Floor Borer (CNC & Conventional type)

Sp. dia 203 mm, X -10 m, Y -5 m, Z -2.2 m, Job wt:100 T

Horizontal Table Borer (CNC & Conventional type)

Sp. dia 130 mm, job wt.:10 T

Vertical Lathes Table dia:1.2 m - 4.77 m, job wt.:4 T-100 T

Facing Lathes Dia.: 3 m, Length: 10 m

Grinding Machines Double column Plano milling m/c's.

CNC Lathes Turning dia. 550 / 600 mm X length 3 m

CNC Turning Centers Swing over carriage : 925 mm

Milling/Drilling/Slotting Machines

Stroke : 1000

2.10 CONSUMERS:

The consumers for its products are mining and paper manufacturing

units and steel manufacturing industries, wind turbine manufacture units.

2.11 Style of management

L&T is a private sector company. Management attitude is very fair

and normal towards its employees. All types of general matters or problems

are always discussed or settled amicably. Regarding individual issues

22

management settles problems. In case of major issues the management

used to discuss with representatives of all three unions.

In L&T the style of management is democratic leadership or

participative leadership because subordinates fell completely free to discuss

things about the job with their superior.

2.12 Office Time:

There is a punch card system in L&T. It is meant for every worker

employee and employer. Every employee and employer must punch their

card before joining their shifts and when they exit from the shift. Punch card

system is an enter & exit policy.

23

2.15 Trade union IN L&T KANSBAHAL WORKS:

In L&T, Kansbahal works presently there are three recognized Trade

Unions namely:

i. Kansbahal Mazdoor Union

ii. Kansbahal Shramik Sangha

iii Kansbahal Industrial Labour Association

In L&T, Kansbahal works once in every four years there takes place a

settlement between the Management of the company and the any one of the

three trade unions that gets the maximum numbers of vote from the workers

in the election.

The recognized Trade Union that was in operation was the Kansbahal

Shramik Sangha (KSS). Its registration number is 643.

The union shall have structured meetings with the management on

day to day issues at various levels as follows:

a) Once a fortnight with Department Head of P&IR.

b) Once a month with the Unit Head.

All the executive meetings of the union are held beyond duty hours

and on weekly off days/holidays. Normally the Executive meetings may be

fixed for duration of two hours once in a month.

There are five identified office bearers for day-to-day discussion with

management, of which any three will attend such meetings which may be

fixed with prior appointment.

24

The size of the Negotiation team for all future negotiation/meeting on

general issue shall not exceed nine members

2.18 SWOT Analysis of Kansbahal Works

In SWOT analysis, we have to consider the most important internal and

external factors (Strength, Weakness, Opportunities, and Threats) that

strongly affect the L&T present and future performance.

After analysis of the key factors, one has needed to check the

alignment of the same with existing organization mission and objectives. If it

is not matching with the organization’s existing strategies, then same must

have to be reviewed and changed. If changed, what will be the effects on the

firm is also need to be monitor.

25

Strengths Weakness

In-house technology and design capabilities Market leadership in India Cash flow Multi-location manufacturing Unit Diversified product line Strong Management

Poor quality Operational risk No R&D Organisational structure Team Work culture Stock price Advertisements Working capital management

Opportunities Threats

Environment awareness and Govt. initiatives

Favorable tax exemptions for green energy

Steady source of demand Huge growth expected in

power sector by 2012 onwards

Alliance with power sector

Intense competition Technology risk Over dependence on supplier Customer satisfaction Potential Development of

Substitute Products Air Pollution & Prevention Act

1986

2.19 The Future of L&T-Kansbahal Works:

The financial results of L&T-Kansbahal Works for the year 2009-10 are

not too encouraging as far as profits are concerned. The company has

reported profits of Rs. 33 crore against the previous year’s profit of Rs.30

crore, thereby achieving a slim growth of ten percent. However, the turnover

has recorded a sharp jump from Rs. 302 dare to Rs. 378 crore. From another

perspective, the performance has been commendable considering the slump

and intense competition in the mining and crushing business and affects of

economy slowdown.

Kansbahal Works is firmly consolidating itself in two major business

crushing and screening equipments and wind turbine castings, presently,

foundry division contributing around 40% of the total revenue. It has

embarked on a major expansion programme by setting-up a new green field

foundry at Coimbatore that will increase the foundry existing capacity from

12,000 Ton / annum to 35,000 Ton / Annum. A Euro issue of $ 0.5 million has

been planned for this expansion.

In wind mill business, L&T has a handful of competitors among whom

Enercon, Suzlon and BHEL are the major one. Now, the up-coming threats

are even coming from China market. At present, L&T average casting

rejection is about 13-15%, which is very high for wind mill components. As

the geographic location of the plant is in remote area, therefore L&T is facing

lots of logistic problems to execute the task timely, which affects

adversely the delivery performance and customer satisfaction.

26

In crushing and screening business, L&T is facing stiff competition from

METSO and Thysonkrupp. 2008-09 economy recessions affects the

crushing and screening business very badly. An outstanding amount of Rs.

120 crore is still due to L&T from various customers. There is an order

backlog of Rs. 240 crore from this segment.

In 2008-09, L&T enter into the field of power business with joint

collaboration of MHI-Japan. The power product range includes Boilers,

VRM, and Structural etc. A Euro of $100 million has been planned for this

diversification. L&T top management decided to manufacture some of the

power plant equipments at Kansbahal works (ESP-Electrostatic

Precipitators) which will give a business of Rs. 500 crore / annum. Apart

from this some other new project which will be coming at Kansbahal are

Wheel-Loader which will add a value of Rs. 200 crore/annum by the end of

2010-11. Both the plant expansion work is under progress and production for

the same will be expected by June 2010.

CHAPTER-3

3.1 Introduction:-

27

As for smooth functioning of any organization five factors are

important. These are man, machine and materials. Among these factors the

most important is man and its related human resources. No organization

however sophisticated can run without men. Man is such a factor

responsible for production having complex, attitudes, motives, behaviors etc.

Inspite of all such characteristics of man they have to be properly organized

and administered in order to achieve organizational effective needs. So,

every organization has a personal department. L&T Kansbahal Works also

have a Personnel Department known as P&IR Department to look after the

day to day administration of its man power. P&IR department has the overall

responsibility in dealing with the human factors in the industry.

3.1.1 Personnel Administration:-

Under the personnel administration, sub-functions are Procurement,

selection of workers, placement, wages and salary administration,

promotion, transfer, appraisal etc, industrial relations function includes

agreements, contracts, settlement of dispute redress of grievances etc. The

welfare functions are intramural and extramural facility, social security,

community welfare and many more. The Personnel and Industrial Relations

Department in L&T Ltd (Kansbahal works) is headed by Senior Deputy

General Manager who takes care of all matters relating to this Department

and is answerable to the CEO of the organization.

3.1.2LINE-STAFF Relationship:-

The line and staff relationship in L&T Ltd. (Kansbahal works) is really

remarkable. The lines officials are indirect chain of contribute to

accomplishment of the enterprise. On the other hand staff authority is

auxiliary in nature that helps line managers to work most efficiently. There is

good formal as well as informal relationship both the line and staff

department.

3.1.3PERSONNEL POLICY:-

28

P&IR Department initiate action and condition in administrating all

ascents of personnel policy with in the organization. The personnel policy of

L&T Ltd. (Kansbahal works) is attracting competent personnel with most

potentiality and by their maximum capability in a work environment by

providing opportunities for advancement. The management of L&T Ltd.

(Kansbahal works) always looks after the improvement of workers so that the

laborious and efficient personnel’s get opportunities to develop in the

hierarchical level.

3.2 Industrial relations in L&T, KANSBAHAL

WORKS:-

Being a private sector undertaking maximum production and

maximum profit are preliminary objectives of the L&T Ltd. Kansbahal works.

For this workers cooperation and their satisfaction the job are highly

essential. So, the management is not in a position to take any risk in

promoting individual conflicts, it has a very positive attitude towards the

employees. The management is always ready to help the employees. For

each and every problem, the management tries to find out a perfect solution

so that it will get no room to take form of a dispute. In every four years, the

management and the union sit together and make agreement on certain

aspects related to their working site and some aspects of their non-working

site. The management publishes it in the form of a Memorandum of

Settlement. The unions are also very active and whenever the find any

problem, they try to solve that at the shop floor levels. In this way, the trade

unions are also very active .They try to solve that at the shop floor levels .In

this way the trade union also play a supportive role in promoting a

harmonious industrial relations.

HUMAN RESOURCES DEVELOPMENT IN LARSEN AND TOUBRO

LIMITED-:-

29

Larsen and Toubro Limited is probably the first organization in India

to introduce an integrated HRD system and to set a separate Human

Resources Development Department, headed by a senior executive to

implement the system. The whole exercise of looking into the Human

Resources system was mainly due to the culture of Excellence, Introspection

and Openness in the Company. Constructive criticism and periodical reviews

are common to ensure maximum mileage from a system or an operation.

The Integrated HRD system.

Performance Appraisal and other interrelated sub-system are

i) Performance appraisal

ii) Potential Appraisal

iii) Employee Counseling

iv) Career Development and planning

v) Training

vi) Organization Development (OD).

3.3 ACTIVITIES OF P&IR DEPARTMENT OF L&T

KANSBAHAL WORKS:The various activities carried out by the P&IR department of L&T

Kansbahal works are as follows.:-

Personnel Management System (All employees)

Personnel Administration

Employees Benefits (Car scheme/Bike Schemes/PC Scheme etc).

Long Term Settlement

Employee Engagement

Canteen

Henning Award

School Matters (Pr. Schools)

Manpower Planning

Talent Acquisition (Trainees & Lateral Entries)

30

Trainees Administration (Supervisory Trainees)

SAP related activities (PA/PMS)

General HR services (Employment Exchange, Induction, Pre

confirmation interviews, ISO etc.)

Database Management (Manpower, CSR etc.)

Transit House.

Training & Development

Attendance System

HRIS (EPR/INNER CIRCLE/T&D ON SAP)

Industrial Relations

Contract Labour

Provident Fund

ESI

Welfare Activities (Shoes/Uniform)

Apprentices

Advance Training

Industrial Visits

Contractual Engagements

Wage Administration

Education Reimbursement (Unionized)

ITI Sponsorship

Own your House Scheme.

Reimbursement to deceased employees

Salary Administration upto M3B

Superannuation

Education Reimbursement (S & Above)

General HR activities like LTIT, team celebration, picnic, Academic

31

performance etc)

Coordination for merit awards

Monthly Manpower reporting to IPMOC-HR & Accounts

Maintaining employee master

Long Service Award/special Service Awards

School Administration

PODP, preparing Training Calendars

32

EXPLANATION:

The P&IR Department of L&T Kansbahal Works is a very important part

of the company. The personnel department is headed by Head HR & IR who

looks after all the working of the department. Under him there is an Assistant

Manager P&IR, who looks after the work of personnel officers .Each executive

in P&IR Department have their role clarity and perform their respective tasks

everyday to achieve the objectives of the organizations.

3.5 PERSONNEL POLICES & BENEFITS:-

3.5.1 Recruitment POLICY:-

The Prime consideration for recruitment shall continue to be based on

efficiency, qualification and suitability for the job.

Before recruitment from outside is considered, possibility of

promotion from the existing cadres will be explored. Other factors being

equal, preference will be given to existing workmen.

3.5.2 Core development programs:-

Core development programs are organized for employees in various

cadres to groom them for shouldering their responsibilities effectively.

■ Supervisory Development Program (SDP) for Supervisory cadre

employees.

■ Executive Development Program (EDP) for the Executive cadre

employees. This provides basic Managerial knowledge in subjects like

33

Marketing, Finance, Human Resources and Operations.

■ Management Development Program (MDP) for the Middle

Management cadre employees.

■ Senior Management Development Program (SMP) for the Senior

Management cadre employees

■ Top Management Program (TMP) for the Top Management cadre

employees.

3.5.3 Management Development Centre:

L&T has a Management Development Centre at Lonavala (in between

Mumbai & Pune) a state of the art training facility. The MDC is constructed in a

prime location spread over 20 acres of land.

All the Management Development Programmes for the middle to top

management are organized at MDC.

In addition to this there are many Training Centers, Technical Training

Workshops and Libraries available at various locations across the company.

3.5.4 Leadership Programs:

These programs are aimed at identifying future leaders in the

organization. These programs are in various categories and cater to the

different requirements of the organization. The nominees go through an

assessment center and the successful candidates are chosen to be groomed for

taking higher responsibilities in the future. The categories are:

34

Supervisory Leadership Program (SLP) - This program is to identify for

budding the leaders in the supervisory cadre.

Execution Leadership Program (ELP) - This program is meant for

identifying and budding leaders in the Executive Cadre as well as in Middle

Management Cadre employees.

Management Leadership Program (MLP) - This program is meant for

identifying & budding leaders in the Senior Management cadres.

Technology Leadership Programs (TLP) - This program is for identifying &

budding the top talent in the various technology areas to gain technology edge

for the future.

3.5.5 Leave Travel Assistance:

Leave Travel Assistance Facility is available for employees as per their

grade. A minimum of 6 days privilege leave has to be applied for, to avail the LTA

Benefits. An employee may avail LTA for each calendar year or may avail LTA for

combined two years.

Outstation Travel:

The employees traveling outside for official purposes can avail an

advance for their expenses through a Travel expenses Format duly authorized by

the concerned HOD. The Expense limit can be understood from the Accounts or

HR Department before commencing the Travel.

3.5.7 Holiday Home Facilities”:

The company maintains Holiday Homes in many places of tourist

interest across India. The employees are entitled for availing this benefit as per

the eligibility criteria. The list of Holiday Homes with the eligibility and the

procedure is available with the concerned Area Office Administration.

35

3.5.8 Long Service award:

This Award is a token of appreciation from the company for the

employees who have given a considerable period of their services to the

company. This award is given on completion of 20, 25 and 30, 35 and 40 years

of service in the company. The Award includes a letter of appreciation and a

trophy.

3.5.9 Long Service Special Awards:

L&T Employees are given Long Service Special Awards in the form of

Preferential Shares of L&T Welfare Company Limited(LTWC), on completion of

five, ten, fifteen, twenty, twenty five, thirty, thirty five & forty years in the

company.

3.5.10 L&T Institute Of Technology:

L&T Institute of Technology is a Technical Institute situated at Powai.

This institute offers Diploma courses on various subjects, to the children of

the employees.

3.5.11 Scholarship & Rewards for the employees' children:

The children of the employees are given rewards & scholarship for

outstanding performance in their examinations as per the schemes applicable

to various classes and various grades of employees.

36

CHAPTER-4

4.1 INTRODUCTION:-

4.1.1HUMAN RESOURCE MANAGEMENT

Human resource management is a management function that helps

managers to recruit, select, train and develop members for an organization.

It views people as an important source or asset to be used for the benefit of

organizations, employees and the society. The primary objective of HRM is to

ensure the availability of a competent and willing workforce to an

organization.

The activities included in HRM are Human Resource planning, job

analysis and design, recruitment and selection, training and development,

performance appraisal, remuneration, motivation, communication, welfare,

safety and health, industrial relation and many more.

4.1.2HUMAN RESOURCE DEVELOPMENT

HRD is the process of helping people to acquire competencies. HRD is

mainly concerned with developing the skill, knowledge, attitude and

competencies of people & it is people oriented concept.

In an organizational context, HRD is a process by which the

employees of an organization are helped in a continuous and planned way

to:

37

o Acquire capabilities required to perform various functions associated

with their present and future roles.

o Develop their general capabilities as individuals and discover and

exploit their own inner potentials for their own and organizational

development purposes.

o Develop an organizational culture in which superior-subordinate

relationship, team work & collaboration among sub-units are strong.

o HRD process is facilitated by mechanisms like performance appraisal,

training, organizational development, feedback & counseling, career

development, potential development, job rotation & rewards.

1. HEALTH, SAFETY & WELFARE:

In L&T, Kansbahal the measures taken for recurring employees’ health,

safety & welfare are:

Free check ups of the employees once a year.

Free eye camp for poor people. It also facilitates for free cataract

operation.

There is also health insurance for different employee at different cadre.

Inside the plant all types of safety measures are taken like helmets,

gloves, safety shoes, goggles for eyes, ear buds, mask for breathing and

safety apron for the workers.

There is a safety committee that works here & meets at the end of

every month.

2. UNION MANAGEMENT PROBLEM SOLVING FORUM:

38

In L&T, Kansbahal there is a “Works Committee” where the problem

solving work is done. the member in this committee are 16 in total where 8

members represent the union & the other 8 members represent the

management of the company. The quorum of the meeting here is to be 5

members.

This committee meets every month in a year. The issues discussed

here are related to workforce pay structure, quality of work etc.

But the issues that are to be discussed were already been discussed in

their respective departments before coming to the meeting of the

committee.

Only at the time of long-term settlement the union & management play a

vital role.

CHAPTER –5

5.1 AN OVERVIEW:-

The summer internship program at Larsen & Toubro limited,

Kansbahal Works for thirty days was really a great feeling for the scholar

who got the practical knowledge about the working of an organization. An

overview presented after due observation regarding the study is as follows:

The HRD practices are carried out efficiently in the company for the

improvement of the human resource. There exist healthy dyadic relations in

the company. The style of management functioning is democratic in nature.

The performance management system in L&T, Kansbahal Works

gives ample time for analysis of the employees’ present status in relation to

their work. The discussion between the superior and the subordinate is free

39

and informal in nature and set the objectives to be achieved for the coming

fiscal year.

The Rewards are decided based upon the performance of the

business, particular unit and the individual’s performance.

The Promotion decisions are based on suitability of the employees for

promotion rather than favoritism.

Here the management believes that growth of an employee is linked

with the growth of the organization. The Career Development Program is fair

and transparent in nature. The employees are informed about the

organizations career growth plan.

Employees have the promotion opportunities to grow in the

organization to reach the higher echelons of Management. The promotions are

based on the performance and competencies of the employees as well as

requirements of the organization. Employees are given the opportunity to work

in different fields based on their competencies and requirements of the

organization. Employees are encouraged to review their performance at least

once a year with their superiors. They may use this opportunity to discuss their

competencies, areas of improvement, career opportunities etc

The Training and Development Program is also very effective here.

The training program in the company is structured around enhancing the

overall competence of the employees. The programs are broadly grouped

under two heads as:

Technical/functional skills

Managerial/behavioural skills

The behavioral/managerial skills are identified through the

Performance Oriented Development Plans (PODP). The units themselves

conduct the technical Training Programs, as the programs are highly

specialized and specific to their technical requirements. Apart from this,

40

employees are nominated for external training programs, seminars,

conferences and workshops to keep themselves updated on the current

knowledge in the field.

The workers are satisfied with the working conditions provided by

L&T Kansbahal works. The workers are provided with proper safety

equipments at the work place. They are also given other benefits like House

Rent Allowance, Service Allowance, Washing Allowance, Transport

Allowance, Housing facilities, Educational facilities, Welfare facilities and

Medical & Recreational Facilities.

For achieving organizational goals and objectives, the Company and

the Union agree to encourage the highest possible degree of friendly and co-

operative relation between their respective representative at all levels and

with and between all workmen. The Company & Union have healthy &

responsive attitude reflecting responsible thinking and behaviour based on

full understanding and regard for the respective rights and responsibilities of

the company & its workmen.

The management makes all efforts to remain proactive to the issues

of developing the organization at all levels and in all spheres.

41

CHAPTER –6

6.1 Summary:-

While summing up the entire study conducted at L&T Ltd. Kansbahal

Works, the researcher has relied more on inductive method of interviewing

and observing different categories of people of the organization. Chapter 1 is

devoted towards the introduction concept and importance of the study

followed with methodology and limitations. Chapter 2 deals with the profile

of the organization consist of its history, geographical location, raw

materials, manufacturing process, production capacity, consumer, style of

management, list of board of directors. Chapter 3 describes the profile of the

personnel department including its structure, function. The activity of the

department spread to various personnel function, maintains a good track in

keeping with industrial relations and labour welfare functions. Chapter 4

deals with various human resource practices at L&T. Chapter 5 reflect the

opinion of the management, workers and trade union.

6.2 Conclusion:-

L&T Ltd Kansbahal works, which is heavy engineering division of L&T

group, which is a manufacturing company having sophisticated technology

imported from Germany. At present, this company is on the way of right

sizing its man power.

The importance of human resource (HR) in the emergency world

economic order cannot be over stated. Today economies across the world

are market driver due to cut throat competition. Ground realities have been

42

changed for the private sectors in India. The competition forces the private

sector for high performance and productivity to sustain in this year.

L&T has got a customer focused approach for which it is able to

sustain in market. L&T Kansbahal works in part few years has attained

impressive achievement. Now it is planning further to attain organization

goal by satisfying customer. There is a conducive working climate present in

L&T Kansbahal. It is a profit making organization & running without any

conflict among the employees. All the workers and employees are dedicated

to their work to attain the organizational goals.

6.3 Suggestions for future implementation :

HR strategy must be developed & align to business strategy to

achieve the corporate strategy.

Improving the cost of quality of production by effective people

management.( motivation, training, leadership)

Effective man-hour utilization

Root cause analysis of employee leaving L&T Kansbahal Works.

Participation of young potential people in the management decision-

making.

Reduce food wastage in canteen by making the employees aware

about it.

Medical facilities for employees parents

Job rotation for the employees

Women employee recruitment is less so it is to be increased.

Better housing facilities for employees

Improve recreation facilities for employee

Employee safety in colony premises.

43

Bibliography

1. ESSENTIALS OF HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL

RELATIONS BY P.SUBBA RAO.

2. HUMAN RESOURCE MANAGEMENT AND PERSONNEL MANAGEMENT BY

K.ASHWATHAPPA.

3. HUMAN RESOURCE MANAGEMENT BY C.B. GUPTA.

By:

Anurag Chakraborty

44