A PROJECT REPORT ON

FUNCTIONING OF

THE HUMAN RESOURCE DEPARTMENT

AT

FORCE MOTORS LTD.

IN PARTIAL FULFILLMENT OF MASTERS IN

PERSONNEL MANAGEMENT

UNIVERSITY OF PUNE

BY

ANJALI ANAND

MPM BATCH 2009-11

INDIRA INSTITUTE OF MANAGEMENT,PUNE

PREFACE

This field work is undertaken to study the HR practices followed by FORCE

MOTORS LTD., Akurdi , Pune. The human factor is the most critical and dynamic

factor in the management of the organization. Indian industry is waking up to the

challenges thrown in market economy, to survive in the highly competitive scenario,

managers are being pressured to improve quality, increase productivity, cut down

waste and eliminate inefficiency. The employer and the employee assume relevance

in this context. And this is where Human Resource Management can play a crucial

role.

This field work report on HR practices is a modest but sincere attempt towards the

understanding of organisation human resources perspective. The contents have been

logically divided into sections to enable the reader comprehend thoroughly the vital

aspects and applications of the various principles of Human Resource Management.

In all, this report provides brief information about Management of Human Resources

at Force Motors. Ltd.

1

ACKNOWLEDGEMENT

Whatever we do, there is someone who helps us to achieve our goals, compete our

targets or simply inspire us. This project too has been the result of many such

inspirations, a lot of support and helps from my guides.

It is a great privilege that I have done my field work in such a well organized and

diversified organization. I would like to thank the organization for giving me an

opportunity of learning and contributing through this field work report.

During my actual project work, Mr. Mohan Kolapkar [Divl. Manager (H.R.M.)] and

Ms. Pallavee Godbole has been the source of inspiration through their constant

guidance; personal interest; encouragement and help. I convey my sincere thanks to

them. In spite of their busy schedule they always found time to guide me through the

project.

I am also thankful to our Director Mrs.Prachee Javadekar and my project guide

Mrs.Gayatri Kulkarni for helping me in completing the project.

Last but not least, I am also thankful to my friends for helping me directly or

indirectly in my project.

ANJALI ANAND

2

TABLE OF CONTENT

CONTENTS PG NO.

COMPANY PROFILE 5

INTRODUCTION 6

HISTORY 7

MILESTONES AND ACHIEVEMENTS 13

PRODUCT RANGE 17

ANNUAL TURNOVER 22

QUALITY ACCREDITATION 22

EMPLOYEES STRENGH 22

BOARD OF DIRECTORS 23

CODE OF CONDUCT 24

ORGANISATION STRUCTURE 25

PERSONNEL DEPARTMENT ACTIVITIES 26

ORGANISATION OF THE PERSONNEL

SET UP

27

MANPOWER PLANNING 28

RECRUITMENT 29

SELECTION 30

H.R.ACTIVITIES 32

INDUCTION 33

TRAINING 34

PERFORMANCE APPRAISAL 35

WAGES AND SALARY ADMIN. 36

WAGES AND SALARY STRUCTURE 37

TIME KEEPING AND LEAVE RECORDS 37

PROMOTION AND TRANSFER 37

3

H.R. INFORMATION SYSTEM 39

H.R. AUDITING 41

CURRENT TRENDS IN HRM 44

STRESS MANAGEMENT 45

QUALITY CONTROL SYSTEM 46

LABOUR WELFARE 48

WORKERS PARTICIPATION IN

MANAGEMENT

52

INDUSTRIAL RELATION 54

DISCIPLINARY NORMS/PROCEDURE 56

TRADE UNION 58

GRIEVANCE HANDLING 58

NEGOTIATION AND COLLECTIVE

BARGAINING

58

FIELD WORK REPORTING 60

OBSERVATION 61

CONCLUSION 61

LIMITATION 61

BIBLIOGRAPHY 62

QUESTIONNAIRE 63

4

COMPANY PROFILE

5

INTRODUCTION

Force Motors : Bajaj Tempo Limited has changed its name to Force Motors

Limited, an enterprise of the Firodia Group. The Company was set up by Shri N.K.

Firodia and began its operations in 1950 in collaboration with Vidal and Sohn of

Hamburg Germany. It started with import of Tempo three-wheeler. In 1957 it began

the manufacturing of HANSEAT 3 wheelers in a small plant at Goregaon, Mumbai.

It established its strong presence in the LCV (Light Commercial Vehicle) with the

Matador that became synonymous with lcvs in India. Vidal & Sohn merged with

Daimler Benz in 1970s, therefore in a new collaboration in July 1982, the company

produced Mercedes Benz OM 616 engine. In the last 5 years Force Motors has

introduced new Light Commercial Vehicles, a new family of Utility Vehicles, new

state-of art Tractors, and a new range of Three-Wheelers. The manufacturing unit is

located at Akurdi (Pune) and Pithampur (Indore).

6

HISTORY

FOUNDER

SHRI N.K. FIRODIA

1910-1997

Shri Navalmal Kundanmal Firodia – freedom fighter and dedicated

Gandhian,participated in the freedom struggle,joining the Non-Cooperation

Movement in 1932 and the Quit India Movement in 1942.He was repeatedly

imprisoned.His vision of an independent and industrially strong nation inspired his

many achievements.He went on to pioneer the Automotive Industry in India,first

founding M/s.Jaya Hind Industries Limited in 1946.Jaya Hind Industries Ltd. Is the

promoter of Bajaj Tempo Ltd.- now FORCE MOTORS LTD.

It was he who established the concept of the low cost public transport– the

Autorickshaw.In fact the word,’Autorickshaw’ was coined by him- now it is accepted

in the English language Dictionaries.It was Shri N.K. Firodia who developed the

autorickshaw and scooter business of Bachraj Trading Corporation Limited,now Bajaj

Auto Limited as per a joint venture agreement affecting from 1st December 1947.He

was largely responsible for the gradual growth of Bajaj Auto Ltd.and for the

prosperity of that company from the start of the autorickshaw and scooter project,till

1968.

THE BEGINNING…

In 1950,Shri N.K.Firodia has already entered into a separate collaboration with M/s.

Vidal Sohn of Germany,to import Tempo Hanseat 3 wheeler chassis,and manufacture

vehicles with specialized bodies for 3 wheeled Auto Rickshaws and pick-up-trucks.

The company Bajaj Auto Ltd. Was founded in 1958.A dedicated factory for the

production of Tempo Hanseat 3 wheelers – was set at Goregaon,a suburb of Mumbai.

7

In the very first year ,the company produced 517 vehicles with a total sale value of

Rs.14,29,618.The Three Wheeler Tempo Hanseat went on to become an extremely

popular,low cost vehicle,in various parts of rural India.

Tempo Hanseat 3 Wheeler

ACCLERETING AHEAD

In the 1950's, in the wave of corporate mergers in Germany, Vidal & Sohn merged

with a company called Hanomag.They were later taken over by Henschel, which was

ultimately purchased by Daimler Benz, now known as daimlerchrysler.Thus, The

companny have had close partnerships and technical collaborations, with a number of

renowned German companies since 1958.In 1961, 120 acres of land was acquired for

building a modern new plant at Akurdi, near Pune to manufacture Four-wheeled Light

Commercial Vehicles (lcvs), for the first time in India. The factory was Contemporary

and ahead of its time, with high degree of vertical integration adopted in

manufacturing.The first LCV to be introduced in 1964 was the 2 ton GVW Viking- a

petrol engined vehicle. This was followed by the diesel engined 3.5 ton GVW

Matador vehicle in 1970. In 1972, the complete machinery for manufacture of

D301E2 diesel engine - the 'Matador engine' - was installed. The Matador proved to

be the most popular Light Commercial Vehicle in India, serving the nation for 30

years with efficiency and reliability.

.

1964:viking petrol LCV 1972:the Matador-India’s

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HITTING THE HIGHWAY

After the oil shock of 1973, diesel became the fuel of choice for all commercial

transportation in India. The Matador diesel vehicle, with its legendary reliability,

powered the company to great success.In 1982, the OM-616 Mercedes engine was

introduced. This Mercedes engine, one of the most famous models ever built, gave the

company a technological edge and an immense amount of success. The collaboration

with Mercedes Benz (Daimler Benz) was strengthened with the signing of the

collaboration for the Tempo Traveller in 1986. In 1987, the ultra modern Pithampur

Plant designed & built to the specification of Mercedes Benz was inaugurated for the

production of the Tempo Traveller and the new generation of four-wheelers. This year

also witnessed the entry of the Trax, a completely indigenously designed utility

vehicle.

Shri H.K.Firodia Pithampur Plant

1919-1995

NEW VISION - NEW PASTURES

In 1992, the Research & Development activity of the company was entirely

computerized. A new Computer Aided Manufacturing (CAM) tool room was

inaugurated - the first of its kind in India. This strengthened the engineering capability

of the Company, to develop and put to production - new vehicle platforms, the first of

which was the Minidor -a new concept in Auto Rickshaws. Later, a full new range of

modern tractors, with Horse Power ranging from 25 to 45 HP, was introduced. This

too was a result of the strong in-house R&D.

9

The Akurdi plant, built initially for the production of lcvs was fully revamped and

remodeled in 1997, to produce the Tractor and the Minidor 3-Wheeler. The

company's commitment to maintain and modernize its plants and processes and to

simultaneously provide employment to old existing employees was expressed through

this effort.

Dr. Rolf The year 1999 was a year of achievements and accolades. Mercedes Benz

asked the company to produce engines for the production of their Mercedes cars in

India. A new plant was set up and was dedicated to the assembly and testing of these

machines. To date, over 10,000 engines have been supplied to Daimlerchrysler India,

for powering Mercedes cars. This initiative culminated in the company winning the

famous Mercedes Quality Award twice.

Abhay Firodia 1999:Tempo Excel LCV

introduced

GEARING UP FOR THE FUTURE

At the turn of the millennium, Tempo had established 4 product lines: 3 Wheelers

(Minidor), lcvs (Excel and Traveller), muvs (Trax), & Tractors (Balwan and OX),

10

supported by 4 areas of excellence. The 4 areas of excellence are being - Research &

Development, Production Engineering, Engine Manufacturing & Vehicle

Manufacturing.

Meanwhile by an amicably negotiated arrangement, Daimlerchrysler exited from the

share holding in the company, yet continuing the close business relations. We signed

new agreements with them, for sourcing technology, for the state-of-the-art common

rail (CRDI) engines & modern gear boxes.

In 2002, it was decided to add a 5th product line of Heavy Commercial Vehicles to

the

Company's business portfolio, along with a 5th area of excellence in 'Marketing' to

Strengthen the company for the future.

In a historic agreement with MAN - world leaders in engine and truck technology, the

company formed a new alliance. This alliance enables it to produce trucks that not

only have the latest technology, but also possess the most reliable engines. The

Company MAN is the world’s most respected Diesel Engine Manufacturers. The

inventor of the Diesel Engine Mr. Rudolf Diesel built the world’s first Diesel Engine

at MAN’s Augsburg factory in 1897.In October 2004, the Company took another

momentous step by entering into a comprehensive 'Technology Agreement' with ZF -

the world leaders in transmission technology. Enabling the company to acquire latest

product and processes technology for heavy duty Truck & Bus Gearboxes. This new

agreement is the 5th occasion, over last 40 years, when the two companies - Bajaj

Tempo Ltd. And ZF Germany – have collaborated.

THE NEW FORCE

The traditional values of Ethical Business, strength in Technology & in

Manufacturing, Energy in Product Development, and the array of new Technological

Alliances - with MAN, Daimlerchrysler, and ZF, today enable it to reposition itself in

the Indian and the Global markets. When force makers took steps to rechristen the

company, gave its name a meaning and a character, which reflects not only their

Values, Strengths and Vision for the future, but more. It is also the 'binding force, in

their close and mutually beneficial relations, with over 5,00,000 valued customers,

11

over 500 dealers, hundreds of suppliers and other close ‘Business Associates.’ In its

new avatar, company will be henceforth known as FORCE MOTORS LTD. The word

FORCE denotes, in engineering terms the product of mass & acceleration. But to

them, it is the definition of the way they conduct their enterprise. FORCE is the

Dynamism with which the company ventures into the Future of its business.

Prasan Firodia

12

MILESTONES AND ACHIEVEMENTS

Late Shri N.K.Firodia, a

dedicated Gandhian and

Visionary Industrialist,

was the Founder-

Managing Director of the

company. Having

participated in the

freedom struggle for India

in 1932 and 1942 was

determined to achieve

Industrial modernization

for India. He established,

starting in 1950, in

Collaboration with Vidal

& Sohn, Hamburg,

Germany the import and

later progressive

manufacture in India of

the Tempo 3-Wheeler.

13

On 15th August 1957, the 10th

anniversary of Indian independence, Mr.

N.K.Firodia signed a collaboration with

Vidal & Sohn Tempo Werke gmbh for

phased manufacturing of TEMPO 3-

WHEELER & manufacturing was started

in a small plant at Goregaon, Bombay.

The initial licensed capacity granted by

the government was 1000 per year and 80

vehicles per month.

Expanding the business in 1961, the Company acquired about 150 acres of land in

Akurdi near Pune. The production was transferred to Pune by the end of 1964.

Ambitious plans for producing Light Commercial Vehicles for the growing

industrial economy of India were drawn up. The manufacture of TEMPO VIKING

4-Wheeled Trucks & Vans commenced in November 1964. The licensed capacity

was increased to 6000 vehicles per year.

The VIKING vehicle subsequently was upgraded with

a diesel engine and the MATADOR was born. The

production of Matador commenced in 1969. In 1975,

the manufacturing capacity of the company was

increased to 12,000 vehicles per year, in addition to

6,000 diesel engines for other purposes.

 

The collaborator company in Germany, in the wave of mergers during the 70 s

merged eventually with Daimler-Benz. In July 1982, the company in a new

collaboration - with the then Daimler Benz - produced the Mercedes Benz OM 616

engine under license for fitting on its line of vehicles.

The TEMPO TRAX Vehicle, specifically designed

for the rough roads of rural India was developed by

the Company's Research & Development

department, to cater to the growing mechanization of

passenger transport in rural India.

14

To further modernize its

LCV product range, the

Company took up the

production of the TEMPO

TRAVELLER, under license

from Daimler-Benz. A new

Plant was set up in 1987, on a

Greenfield site in Central

India at Pithampur in

Madhya Pradesh. This

modern facility was

developed in close co-

operation with Daimler-Benz.

The plant is equipped with a

modern conveyorised body

welding and Electrophoretic

dip painting shop. The Plant

has been expanded to house a

new Press Shop in 1997.

In 1996, the company introduced

a new range of Three Wheelers -

MINIDOR - pick up and auto

rickshaw. These vehicles were

completely designed in house

using its own modern Computer

aided Design and Computer

Aided Manufacturing facilities

In 1997, the company

conceived a technologically

superior tractor, the OX, as a

diversification and the OX 45;

a 45 HP tractor was

introduced. The tractor was

15

designed using Transmission

technology from ZF, Germany,

and technical assistance for

engine from AVL, Austria and

hydraulics technology from

Bosch. A 35 HP version of the

tractor, the OX 35 was

introduced in 1999. During

2002, 25 HP OX-25 was added

to its range. The company

launched Balwan range of

tractors in 2003.

In 1999, The EXCEL range of state of the art Light

Commercial Vehicles was introduced. These vehicles with

their superb ergonomics and superior aggregates represent

the latest generation of LCV s in India that can carry

payloads upto 4 tonnes.

Continuing with the efforts to

introduce new products, the company

in the year 2000 introduced two new

- highly refined vehicles - specially

designed for the Indian market.- Trax

JUDO and Trax GAMA. Trax

JUDO, now with a Euro II compliant

engine, all metal body, excellent fit

and finish is the All Rounder multi

utility vehicle, with both air

conditioning and power steering as

standard options. Trax GAMA also

features a full metal body and fine fit

and finish, with a most economical

DI engine. The GAMA is thus the

Ideal People Carrier, for rural as well

16

as urban transportation needs.

In the Year 2000, the Pithampur plant and its Mercedes Engine facilities received

the prestigious ISO 9002 certification for quality systems.

In year 2003, the entire Akurdi plant and Pithampur Plant were certified to ISO

9001: 2000.

Recently the company has firmed up a joint venture with MAN AG of Germany for

manufacturing of trucks at Pithampur, the industrial hub of Madhya Pradesh in

Indore.

On 3rd Dec 2008 another agreement was signed between Man AG and Force motors

to the effect that both will hold equal (50:50) stake in the JV company Man Force

trucks pvt. Ltd.

PRODUCT RANGE

The company produces so many types of vehicles.

MUV

LCV

3 WHEELER

SCV

TRACTOR

MUV

Force motors produces two types of MUV’s:

(i) MUV ( Goods Carrier)

17

Trax Hospital Waste

Incinerator  Trax Ambulance  Trax Recovery Van

  Trax Troop Carrier   Trax Cash Van Trax Vaccine Carrier 

(ii) MUV

Passenger

 

 

GAMA

Gurkha black beauty

Cruiser classic

Toofan classic

TRAX ambulance

Challenger

LCV

(i) LCV (Goods Carrier)

18

Commuter Mobile

LaboratoryExcel 2Wheeler Carrier Excel Cash Van

Excel Cash Van Excel Cylinder Carrier Excel Delivery Van

Excel Delivery Van Excel Laboratory Excel Recovery Van

Excel Side Delivery Van Excel Tea Supply Van Excel Water Tanker

 

(ii) LCV (Passenger)

19

Commuter Mobile Clinic Excel Ambulance Excel Bus

Traveller Police Van

 

Traveller Mobile ATM

3 WHEELER

 

Minidor Ice Cream

ParlourMinidor Burger Shop Minidor Coffee Van

20

 

Minidor Demo Carrier

  Minidor Soft Drinks

Carrier

  Minidor Gas Cyl

Carrier

  Minidor Tipper   Minidor Ambulance  Minidor 2Wh Demo

Vehicle

  Minidor High Deck

Pick Up  Minidor School Bus

SCV

M4 SUPER

M4 SUPER CNG

21

TRACTOR

Balwan 500

Balwan 400

Balwan 450

Balwan 330

Orchard ox25

ANNUAL TURNOVER

The annual turnover of the Force Motors Ltd. is Rs.1300 crore.

QUALITY ACCREDITATION

Force Motors. is ISO certified company.

EMPLOYEES STRENGTH

The strength of pay roll employees in the company is 5400.

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BOARD OF DIRECTORS

No. Name Designation

01. Mr. Abhay  Firodia Chairman & Managing Director

02. Mr. S. N. Inamdar Director

03. Mr. Bharat V. Patel Director

04. Mr. Pratap G. Pawar Director

05. Mrs. Anita Ramachandran Director

06. Mr. S. Padmanabhan Director

07. Mr. L. Lakshman Director

08. Mr. Sudhir Mehta Director

09. Mr. Vinay Kothari Director

10. Mr. Prasan Firodia Director  

11. Mr. S. A. Gundecha Director

12. Mr. R. B. Bhandari Director

23

 

CODE OF CONDUCT

Applicability – This Code of Conduct is applicable and binding on the Directors

and Senior Management Personnel of the levels of Presidents, Vice Presidents,

who are Members of the Senior Management Team of the Company.

Code of Conduct – The Board Members and Senior Management shall–

o Always act in the best interest of the Company;

o Adopt highest standards of personal ethics and integrity in their dealings

with the Company;

o Make disclosures, to the Board of Directors, relating to all material

financial and commercial transactions in which they have personal interest,

and may have a potential conflict with the interests of the Company;

o Ensure security of all confidential information made available to them in

the course of discharge of their duties or otherwise;

o Follow all prescribed safety and environmental norms;

o Not engage with any member of the Press or Media in the matters

connected with the Company or its business unless specifically permitted

by the Board of Directors of the Company or the Chairman & Managing

Director of the Company;

24

o Conduct themselves and their activities outside the Company in such a

manner as to not adversely affect the image or reputation of the Company;

o Accept and act according to this Code of Conduct and affirm compliance

with this Code on annual basis.

ORGANISATION STUCTURE

Management (7 Grades)

Supervisory Level (6 Grades)

Clerks

25

PERSONNEL DEPARTMENT

ACTIVITIES

Operators

26

ORGANIZATION OF THE PERSONNEL SET UP

hrh

27

H.R. DIVISION

GENERAL MANAGER

H.R. DIVISION

GENERAL MANAGER

HRD DEPT. HRD DEPT.

SENIOR EXECUTIVESENIOR EXECUTIVE

SENIOR DIVL.MANAGER

SENIOR DIVL.MANAGER

EXECUTIVESEXECUTIVESDIVL.MANAGERDIVL.MANAGER

PERSONNEL HRM DEPT.PERSONNEL HRM DEPT.

In Force Motors LDT. ,the whole personnel set up is divided into two departments,

the first one is HRD department and the other one is personnel HRM

department.HRD department looks after the activities like Recruitment,

selection ,induction ,training and development, and performance appraisal of the

human resources. The other department takes over the work of Industrial Relations.(i)

IR system

(ii) Discipline and grievance management

(iii) industrial disputes management.

MANPOWER PLANNING

Manpower planning also called as human resource planning is the process – including

forecasting , developing , implementing , and controlling – by which a firm ensures

that it has the right number of people and right kind of people , at the right place ,at

the right time , doing things which are economically most suitable.

Objectives of HRP:

To recruit and retain the human resources of required quantity and quality.

To foresee the employee turnover and make the arrangements for minimizing

turnover and filling up of consequent vacancies.

To meet the needs of the programmes expansion , diversification etc ;

To foresee the impact of of technology on work existing employees and future

human resources requirements.

To improve the standards, skills, knowledge, ability, discipline etc.

To assess the surplus or shortage of human resources and take measures

accordingly.

To make the best use of its human resources

28

HR OFFICERSHR OFFICERS

To estimate the cost of human resources.

To minimize imbalances caused due to non –availability of human resources

of the right kind, right number in the right time and right place.

Manpower Planning In Force Motors.

In Force Motors Limited, a separate Industrial Engineering department has been

provided for Manpower planning. They review that if there are vacancies and

requirements in any department of the company. These activities are done on monthly

basis. If there are any requirements of human resources or vacancies then this is

reported to the higher authorities. After their approval, recruitment is done.

RECRUITMENT

Recruitment is a process of finding and attracting capable applicants for employment.

The process begins when new recruits are sought and when their applications are

selected. Edwin B. Flippo defined recruitment as “the process searching for

prospective employees and stimulating them to apply for jobs in the organization.”

Objectives of recruitment:

To attract people with multi-dimensional skills and experiences that suits the

present and future organizational strategies.

To infuse fresh blood at all levels of the organization.

To search for talent globally and not just within the company.

To induct outsiders with a new perspective to lead the company

To develop an organizational culture that attracts competent people to the

company

To anticipate and find people for positions that do not exist yet

29

Sources of recruitment:

Internal sources of recruitment

Present permanent employees

Present temporary or casual employees

Retrenched or retired employees

Employee referrals

External sources of recruitment

Walk – in

Campus recruitment

Consultancy firms

Public employment exchanges

Professional associations

Trade unions

Recruitment In Force Motors.

In Force Motors Limited, recruitment is done from both the types of sources –internal

as well as the external sources of recruitment.

Recruitment is mostly done through employee referrals, through private employment

agencies /consultants, jobsites and also through websites.

SELECTION

After identifying the sources of human resources, searching for prospective

employees and stimulating them to apply for jobs in an organization, the management

has to perform the function of selecting the right employees at the right time. The

obvious guiding policy in selection is the intention to choose the best qualified

suitable job candidate for each unfilled job. Thus Selection is the process of

differentiating between applicants in order to identify and hire those with a greater

likelihood of success in a job.

30

It is choosing the fit candidates, or rejecting the unfit candidates or a combination of

both. Selection involves both because it picks up the fits and rejects the unfits. The

objective of the selection decision is to choose the individual who can most

successfully perform the job from the pool of qualified candidates. The selection

procedure is the system of functions and devices adopted in a given company to

ascertain whether the candidates’ specifications are matched with the job

specifications and requirements or not.

Role of selection in organizational efficiency:

Organizational efficiency is mostly determined by productivity. Productivity

in its turn is mostly influenced by the employees’ contribution

Organizational efficiency is influenced by production of high quality products,

rendering superior services to the customer. Human resources is most vital

resource in producing quality products and rendering the best service to the

customer.

Globalization and international competitiveness led to the customization in

production and distribution. Customization can be possible only with the

commitment and multi –skills of human resources

Human resources is the knowledge, machine, technology, marketing, finance,

etc. in the software industry.

Selection Process In Force Motors.

In Force Motors Ltd. Company, after the application pool is obtained through

recruitment, first of all shortlisting is done by going through the CV’s of the

candidates. The shortlisted candidates are then called for the interview. The

candidates have to go through two rounds of interviews – core interview and

preliminary interview. The appropriate candidates those who pass these two rounds of

interviews are then selected and offered the job.

31

32

H.R. ACTIVITIESINDUCTION

Induction is a process of introducing a

new employee to the organization and the

organization to the employee by providing him relevant

information.

It is a technique by which a new employee is rehabilitated into the changed

surroundings and introduced to the practices, policies and purposes of the

organization.

This process is also called as orientation.

Need and importance of induction:

For overcoming employee anxiety

Overcoming reality shock

33

Accommodating employees to the new environment

Induction In Force Motors.

In Force Motors LTD. Company, induction to the new employees is given for five

days. On the first day of induction all the new employees are introduced to company,

its milestones and achievements. On the second day about the functioning of the

company. They are also introduced to the Board of Directors and the whole staff of

the company.

On the third, fourth and fifth day the new employee is inducted related to the

functions of his/her department concerned and what his/her work would be.

After that they are placed on to the jobs in their respective departments.

TRAINING

Training is the act of increasing the knowledge and skill of an employee for doing a

particular job. In other words, training improves changes and moulds the employee’s

knowledge, skill, behavior and aptitude and attitude towards the requirements of the

job and the organization.

Objectives of training:

To prepare the employee, both new and old to meet the present as well as

the changing requirements of the job and the organization.

To prevent obsolescence.

34

To impart the new entrants the basic knowledge and skills they need for an

intelligent performance of a definite job.

To prepare employees for higher level jobs tasks.

To ensure economical output of required quality.

Training In Force Motors.

This company has a training centre. New employees as well as old employees are

given training as per the requirements. The trainees are first of all given a TNI

(training needs identification) form. The trainees have to go through atleast seven

critical training procedures. The whole training procedure is divided into three types:

1. Technical training

2. Behavioral training

3. Functional training

The trainees are given freedom to choose atleast seven training procedures they want

to go through. This training is given to the employees throughout the year.

PERFORMANCE APPRAISAL

Performance appraisal is the key ingredient of performance management. It is a

process of evaluating an employees’ performance of a job in terms of its

requirements.

Performance appraisal is the process of evaluating or judging the value, excellence,

qualities or status of some object, person or thing.

Objectives of performance appraisal:

to help a manager decide what increase of pay shall be given on grounds of

merit.

35

To determine the future use of an employee, e.g., whether the employee shall

remain in his or her present job or be transferred, promoted, demoted or

dismissed.

To indicate training needs, i.e. areas of performance where improvements

would occur if appropriate training could be given.

To motivate the employee to do better in his or her present job by giving the

worker knowledge of results ,recognition of merits and the opportunity to

discuss work with his or her manager.

Performance Appraisal In Force Motors.

Performance appraisal in the Force Motors Ldt. is done on annually basis. A KPI (key

performance index) set is maintained for every employee. The performance of every

employee is recorded and then evaluated, according to which they are given training

in their respective area of improvement. Accordingly, employees are transferred or

promoted.

36

WAGES AND SALARY ADMIN.

WAGES AND SALARY STRUCTURE

Wage is referred to as remuneration to workers particularly, hourly- rated payment.

And salary refers to the remuneration paid to white- collar employees including

managerial personnel. Wages and salary are paid on the basis of fixed period of time

and normally not associated with productivity of an employee at a particular time.

37

Wages and salaries are subject to annual increments. They differ from employee to

employee and depend upon the nature of job, seniority, and merit.

The company did not reveal anything about the wages and salary structure of their

employees. However, the wages and salary are given to the employees according to

the type of job, level of seniority, or whether the employee is skilled, semi- skilled, or

unskilled.

TIME KEEPING AND LEAVE RECORDS

Generally this is done manually. Registers are maintained for attendance and then

these are fed into the computer. Leave records are also put into the computers and

proper records are maintained.

PROMOTIONS AND TRANSFER

Promotion:

Promotion means an improvement in pay, prestige, position and responsibilities of an

employee within his/her organization. A mere shifting of an employee to a different

job which has better working hours ,better location and more pleasant working

conditions does not amount to promotion. The new job is a promotion for the

employee only when it carries increased responsibilities and enhanced pay.

Objectives of promotion:

To motivate employees to higher productivity.

To attract and retain the services of qualified and competent people.

To recognize and reward the efficiency of an employee.

To fill up higher vacancies from within the organization.

To build loyalty, morale and a sense of belongingness in the employee.

Transfer:

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A transfer involves a change in the job (accompanied by a change in the place of the

job) of an employee without a change in responsibilities or remuneration.

A transfer differs from a promotion in that a latter involves a change in which a

significant increase in responsibility, status and income occurs but all the elements are

stagnant in the former. Another difference is that transfers are regular and frequent as

in banks and other government establishments, but promotions are infrequent, if not

irregular.

Promotion And Transfer In Force Motors.

In the Force Motors, promotions are given on the basis of results of performance

appraisal. If there is a vacancy for a post and performance of any employee is

extraordinarily good, after approval by the higher authoritities, he/she is promoted to

that post.

Transfers are also done and it depends on the internal requirements of the company.

Also, inter – departmental transfers occur in the company sometimes, for example,

recently a person from one department was transferred to another department as it was

found that his skills and expertise were more suited to the other job.

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H.R. INFORMATION

SYSTEM

HUMAN RESOURCE INFORMATION SYSTEM

40

The Human Resource Information System (HRIS) is a software or online solution for

the data entry, data tracking, and data information needs of the Human Resources,

payroll, management, and accounting functions within a business. Normally packaged

as a data base, hundreds of companies sell some form of HRIS and every HRIS has

different capabilities. Pick your HRIS carefully based on the capabilities you need in

your company

Human Resource Information System (HRIS) merges human resource management

with information technology to not only simplify the decision making process, but

also aid in complex negotiations that fall under the human resource umbrella. The

basic advantage of a Human Resource Information System (HRIS) is to not only

computerize employee records and databases but to maintain an up to date account of

the decisions that have been made or that need to be made as part of a human resource

management plan.

The four principal areas of HR that are affected by the Human Resource Information

System (HRIS) include; payroll, time and labor management, employee benefits and

HR management. These four basic HR functionalities are not only made less

problematic, but they are ensured a smooth running, without any hitch. A Human

Resources Information System (HRIS) thus permits a user to see online a

chronological history of an employee from his /her position data, to personal details,

payroll records, and benefits information.

The advantage of a Human Resource Information System (HRIS) in payroll is that it

automates the entire payroll process by gathering and updating employee payroll data

on a regular basis. It also gathers information such as employee attendance,

calculating various deductions and taxes on salaries, generating automatic periodic

paychecks and handling employee tax reports. With updated information this system

makes the job of the human resource department very easy and simple as everything

is available on a 24x7 basis, and all the information is just a click away.

The H.R. department of the company makes use of SAP and ORACLE for

maintaining H.R. Information System.

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H.R. AUDITING

HR AUDIT

42

An H.R. audit is a tool for evaluating the personnel activities of an organization. The

audit may include one division or an entire company. It gives feedback about the H.R.

functions to operating managers and H.R. specialists. It also provides feedback about

how well managers are meeting their H.R. duties. In short, the audit is an overall

quality control check on H.R. activities in a division or a company and an evaluation

of how these activities support the organization’s strategy.

H.R. AUDIT

Benefits of H.R. audit:

Identification of the contributions of the H.R. department to the organization.

Encouragement of greater responsibility and professionalism among members

of the H.R. department.

Classification of the H.R. department’s duties and responsibilities.

Stimulation of uniformity of H.R. policies and practices.

Finding critical personnel problems.

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HRM ACTIVITIES

Organizational Objectivess

HRM OBJECTIVES

HRM AUDIT

HRM OUTCOMES

Reduction of H.R. costs through more effective personnel procedures.

The company does not have H.R. audit system.

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CURRENT TRENDS IN HRM

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STRESS MANAGEMENT

Stress is defined as a feeling of emotional or physical tension. Emotional stress

usually occurs when situations are considered difficult or unmanageable. Therefore,

different people consider different situations as stressful. Stress management refers to

various efforts used to control and reduce the tension that occurs in these situations.

Stress management involves making emotional and physical changes. The degree of

stress and the desire to make the changes will determine the level of change that will

take place.

Stress Management In Force Motors.

In Force Motors., various exercises and yoga classes are conducted in the morning

which as a part of stress relieving programme.

On every Sunday employees are invited and they are shown 2 to 3 films regarding

how company has travelled so far, how manufacturing is done, achievements and

milestones of the company.

Also competitions are organized time to time to reduce the stress of work.

Recently force Motors won first prize in BHAJAN COMPETITION organized by

Maharashtra Labour Welfare department.

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QUALITY CONTROL SYSTEM

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QUALITY CONTROL SYSTEM

TQM

-Total: Everyone should be involved

-Quality: customers should be provided with an uniform quality product that meets

their expectations

-Management: the way Total Quality is conducted

TQM is an approach to improving the effectiveness and flexibilities of business as a

whole. It is essentially a way of organizing and involving the whole organization,

every department, every activity and every single person at every level. TQM ensures

that the management adopts a strategic overview of the quality and focuses on

prevention rather than inspection.

Objectives of TQM:

• Meeting the customer's requirements is the primary objective and the key to

organizational survival and growth.

• The second objective of TQM is continuous improvement of quality. The

management should stimulate the employees in becoming increasingly competent and

creative.

• Third, TQM aims at developing the relationship of openness and trust among the

employees at all levels in the organization.

TQM In Force Motors.

In the company there is a separate TQM (Total Quality Management) cell. They train

the employees of different departments and the workers to improve the quality. The

TQM cell does internal Audits also from time to time.

Force Motors Limited is ISO Certified Company.

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LABOUR WELFARE

49

LABOUR WELFARE

Welfare means faring or doing well. It refers to the physical, mental, moral and

emotional well-being of an individual. Labour welfare refers to all those efforts of

employees, trade unions, voluntary organizations and governmental agencies which

help employees feel and perform better.

Labour welfare has two aspects –negative and positive. On the negative side, labour

welfare is concerned with counteracting the baneful effects of the large –scale

industrial system of production –especially capitalistic, so far as India is concerned –

on the personal/family, and social life of the worker. On its positive side, it deals with

the provision of opportunities for the worker and his/her family for a good life as

understood in its most comprehensive sense.

Advantages of labour welfare:-

Welfare facilities help to motivate and retain the employees.

Welfare facilities help to develop loyalty towards the organization.

Welfare of employees may help to minimize social evils such as alcoholism,

gambling, prostitution, drug addiction etc.

Welfare facilities provided by the organization for the workers helps to

improve local image and goodwill of the organization as good employers and

thus assist in recruitment.

Types of welfare activities:-

1. Statutory provisions

2. Non –statutory provisions

STATUTORY PROVISIONS IN FORCE MOTORS.

In force motors, various statutory provisions are there for the welfare of labours.

Different acts which are applicable there are:-

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Industrial Dispute Act, 1947

Standing Orders Act, 1946

The Factories Act, 1948

Payment Of Wages Act

Payment Of Bonus Act

These acts stipulate that no adult worker should be allowed to work for more than 48

hours a week. Working hours should not exceed nine and the total number of hours

spent in a factory is not to be more than 10 ½ hours per day. Weekly, one day should

be declared as a holiday. In the force motors, Sunday is a working day but instead

Thursday is holiday. Other provisions are:-

Drinking water

Washrooms

NON –STATUTORY PROVISIONS PROVIDED BY THE

COMPANY ARE:-

Transport facilities

Safety shoes

Summer caps

Sweaters

Raincoats

Subsidized canteen facilities -2 teas, 1 lunch and 1 snack.

Kids of the employees who come out with flying colours in examinations are

given scholarship award of Rs. 2000- 5000.

Man of the month award- the employee who is very punctual and have zero

absent record in a month, has 100% efficiency, come out with innovative

ideas, has good relations with his/her co –workers, works in a team, and give

wonderful suggestions is awarded with man of the month title.

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WORKERS PARTICIPATION

IN MANAGEMENT

52

WORKERS PARTICIPATION IN MANAGEMENT

Participative management refers to the process of involving employees or employee

representatives at all levels of decision making. Co-determination is another term for

participative management.

Participative management results in improved performance. Improved performance is

the outcome of three variables: removal of conditions of powerlessness, enhancement

of self –efficacy and employee perception of empowerment.

SCOPE AND WAYS OF PARTICIPATION:

There are three groups of managerial decisions which have a direct impact on the

workers of any industrial establishment. They are social, personnel, and economic

decisions. Workers can participate in these three groups.

WAYS OF PARTICIPATION

Participation at the board level

Participation through ownership

Participation through complete control

Participation through staff or works council

Participation through joint councils and committees

Participation through collective bargaining

Participation through job enlargement and job enrichment

Participation through suggestion schemes

Participation through quality circles

Empowerment teams

Total quality management

Financial participation

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Workers Participation In Force Motors.

In Force Motors, workers participation in the management is through total quality

management, participation through suggestion schemes and participation through

joint councils and committees.

In the company three committees have been made:-

Canteen committee

Safety committee

Apex committee

These committees include workers as well as management people.

Apex committee contains top management people and some workers who are

experienced and skilled. They meet once in a quarter and both involve in decision

making. There is a safety committee which includes management and workers and

they meet once in a week and check whether the machines are in safe position or not,

they check for ventilation and other safety related things. Apart from these, there is a

canteen committee where workers and the management both decide about the menu

and improvement steps that should be taken.

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INDUSTRIAL RELATIONS

55

INDUSRIAL RELATIONS

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.

“Industry” refers to “any productive activity in which an individual (or a group of

individuals) is (are) engaged”. By “relations” we mean “the relationships that exist

within the industry between the employer and his workmen.”

The term industrial relations explain the relationship between employees and

management which stem directly or indirectly from union-employer relationship.

Industrial relations are the relationships between employees and employers within the

organizational settings. The field of industrial relations looks at the relationship

between management and workers, particularly groups of workers represented by a

union. Industrial relations are basically the interactions between employers,

employees and the government, and the institutions and associations through which

such interactions are mediated.

Industrial relations concern the relationship between the management and the

employees of an industry. With the liberalization of the economy industrial relations

in India have changed over the last 10-15 years. There are different approaches to

industrial relations, psychological, sociological, human relations, socio-ethical,

Gandhian and systems approach.

The employees, trade unions and management are the three major players in industrial

relations. The government also has a key role to play, but steps in only when the

major players fail to maintain harmonious industrial relations. The government also

provides the basic framework for industrial relations through its legislation.

The industrial disputes prevention machinery helps in averting situations of conflict

between the management and the workers that might lead to a strike or a lock-out.

Some of the basic requirements for prevention of industrial disputes are an effective

grievance redressal system, worker participation in management and collective

bargaining.

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DISCIPLINARY NORMS/PROCEDURE

Some employees, regardless of an organization's efforts at selection, socialization, job

design, performance standards and reward practices, create discipline problems for the

management. Handling these discipline problems is a sensitive and challenging task

for a human resource manager.

Employees of an organization are expected to conduct themselves in accordance with

the organization's rules and standards of acceptable behavior. Employees who cannot

be motivated to maintain such discipline require some degree of extrinsic disciplinary

action. The primary objective of disciplinary procedure is to motivate an employee to

conform to the organization's performance standards.

The disciplinary problems faced by the HR managers can be classified into four

categories – attendance, on-the-job behavior, dishonesty, and off-the-job behavior.

There are three approaches – incorrect discipline, preventive discipline, and positive

discipline – to discipline the employees.

The Government of India enacted the Industrial Employment Standing Orders Act in

1946 to ensure uniform and stable conditions of employment.

Disciplinary Norms In Force Motors.

In Force Motors, boards (on which disciplinary norms are written) are there at

different places so that workers can read and follow them. The various disciplinary

actions that are administered are verbal warning, written warning, suspension, pay

cut, demotion, and dismissal. The severity of the disciplinary action is in accordance

with the severity of the misconduct.

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TRADE UNIONS

Trade unions are voluntary organizations of workers or employers formed to promote

and protect their interests through collective action. The Trade Unions Act 1926

defines a trade union as a combination, whether temporary or permanent, formed (i)

primarily for the purpose of regulating the relation between (a) workmen and

employers or (b) between workmen and workmen, or (c) between employers and

employers, or (ii) for imposing restrictive conditions on the conduct of any trade or

business, and includes any federation of two or more trade unions. Contrary to

popular perception, unions are not meant only to organize strikes. Their presence is

felt in all H.R. activities of an organization. Unions have political affiliations.

Employees join unions because of job dissatisfaction and they perceive that the unions

can remove such dissatisfaction.

Unions use at least tactics to manage the managers. They are – (i) organizing

campaign, (ii) strike and (iii) political support.

The Trade Unions Act, 1926, has 33 sections and has they contain provisions starting

from registration of trade unions to penalties for non –compliance of any clause.

Objectives Of Trade Unions:-

To defend or improve the level of wages and working conditions for their

members.

To replace managerial unilateral actions by mutually –agreed upon actions.

Trade Union In Force Motors.

There exist only one trade union in Force Motors Limited and it is Bhartiya Kamagara

Sena. They have the right to nominate its representatives on canteen committee, safety

committee, and apex committee. They can raise an issue and enter into collective

agreements with employers. They communicate with management on weekly basis.

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GRIEVANCE HANDLING

A grievance is a sign of an employee's discontentment with his job or his relationship

with his colleagues. Grievances generally arise out of the day-to-day working

relations in an organization. An employee or a trade union protests against an act or

policy of the management that they consider as violating employee's rights.

One of the effective ways of minimizing and eliminating the source of an employee's

grievance is by having an ‘open door policy'. An ‘open door policy’ facilitates upward

communication in the organization where employees can walk into a superiors’ cabin

at any time and express their grievances. The National Commission on Labor

suggested a Model Grievance Procedure, which lays down the sequence of steps to be

taken whenever a grievance is expressed.

Conflict occurs when two or more people or parties perceive an incompatibility in

their goals or expectations. There are seven methods for achieving reconciliation of

conflict. These methods are win-lose withdrawal and retreat from argument,

smoothing and playing down the difference, arbitration, mediation, compromise and

problem solving. Of all these methods ‘problem-solving’ method is most likely to

bring about a win-win situation.

NEGOTIATION AND COLLECTIVE BARGAINING

A collective bargaining refers to a process by which employers on the one hand and

representatives of employees on the other, attempt to arrive at agreements concerning

the conditions under which employees will contribute and be compensated for their

services. Collective bargaining is the most effective method of resolving industrial

disputes. It is the process of negotiation between the management and the worker

representatives for resolving differences related to wages, bonus and other benefits,

employee working conditions, grievance redressal procedure, collective bargaining

procedure etc..

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Importance of collective bargaining:

Collective bargaining offers the following benefits to both employers as well as

employees:

It helps increase economic strength of both the parties at the same time

protecting their interests.

It helps establish uniform conditions of employment with a view to avoid

occurrence of industrial disputes.

It helps resolve disputes when they occur.

It lays down rules and norms for dealing with labour.

It helps usher in democratic principles into the industrial world.

Collective Bargaining In Force Motors.

The process of collective bargaining has three steps - preparation for negotiation,

negotiation and contract administration. First of all; preparations are made and issues

are identified, then negotiation phase begins with each side presenting its initial

demands. The negotiation goes on until the final agreement is reached. At last the

agreement is signed and implemented.

The company has adopted the method of collective bargaining for the settlement of

disputes. There is a negotiation committee here in the Force Motors. For negotiating

with the management if some disputes arises. There are 11 people in the negotiation

committee nominated by the trade union –Bhartiya Kamagara Sena.

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Field Work Reporting

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OBSERVATION

Force Motors is a company which has reinvented itself. It is an automobile company,

with expertise in Design, Development and Manufacture of the full spectrum of

Automotive Components, Aggregates and Vehicles. There are 150 departments in the

company. They have a brand name in the market. Sunday is a working day for them

and Thursday is off. The company is spread to a large area. Infrastructure of the

company is also very good.

CONCLUSION

The experience of seeing for myself the application of the textbooks contents in actual

organizational climate was an eye opener in itself. Force Motors Ltd. has a very good

HR department. Their policies and HR initiatives clearly indicate that it is an

employee centered organization. They believe in believing their employees and their

capabilities and potential. Therefore proper treatment is given to the employees, i.e.

proper training, salary structure as per the post of the employees, special benefits for

the workers at the production site.

This is a company that has reinvented itself. A fully vertically integrated automobile

company, with expertise in Design, Development and Manufacture of the full

spectrum of Automotive Components, Aggregates and Vehicles.

The word 'Force' to them is not just the product of 'mass' and 'acceleration'. It reflects

their values of ethical business, their strength in technology, in manufacturing and

energy in product development. It is also the binding force in close and mutually

beneficial relations with their customers, dealers, suppliers and business associates.

LIMITATIONS

It is very tough to extract all the information due to shortage of time and

busy schedules of HR managers.

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BIBLIOGRAPHY

The books and web site which helped me a lot are as follows:

K ASWATHAPPA – HUMAN RESOURCE AND PERSONNEL

MANAGEMENT

P.SUBBA RAO – PERSONNEL AND HUMAN RESOURCE

MANAGEMENT

C.V. MARORIA – PERSONNEL MANAGEMENT

L.M. PRASAD – HUMAN RESOURCE MANAGEMENT

WEB SITES

www.forcemotors.com

www.google.com

www.citemanhr.com

www.wikipedia.org

…………………………………………………………..

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QUESTIONNAIRE

Who was the founder of the company?

What are the products that the company manufactures?

What is the annual turnover of the company?

What is the employee strength?

How manpower planning is done?

What are the sources of recruitment procedure/

How selection is done?

How induction is given to the new employees?

Do you provide training to the new employees and old employees as well?

What is its procedure?

Promotions and transfers are done or not? On what basis?

Which H.R. Information System is used in this company?

Do you have H.R. Auditing?

VRS is applicable in this company or not?

What do you do for reducing the stress of the employees?

Do you have quality control system in your company?

Which are the non statutory provisions of labour welfare that the company

provide to its workers?

Is there workers participation in management? What is the level and scope of

participation?

Is there any trade union in this company? What is its name?

How negotiation and collective bargaining is done?

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