Research Report Safat

SURVEY REPORT

ON

IMPACT OF COMPENSATION PACKAGE ON EMPLOYEES MORALE IN BHEL

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

POST GRADUATE DIPLOMA IN MANAGEMENT

BATCH: 2013-14Supervised By:

Submitted By:Mr. Manish Gautam

Sifat Siddiqui

B.B.A. 6th Sem.

Enrollment No. KA2K12/288 DECLARATIONI SIFAT SIDDIQUI declare that the project work entitled as IMPACT OF COMPENSATION PACKAGE ON EMPLOYEES MORALE IN BHEL is an authentic record of my own work carried out at INSTITUTE OF COMPUTER SCIENCE & TECHNOLOGY, VARANASI as required for the project semester for the award of degree of BBA, under the guidance of Mr. Manish Gautam Place:

Date:

Signature: __________

ACKNOWLEDGEMENTI am thankful to manypeople whose timely help and guidance hashelped me to conduct this researchsuccessfully.

I would also like to express my thankfulness Mr. Manish Gautam (Lecturer), Faculty of INSTITUTE OF COMPUTER SCIENCE & TECHNOLOGY, VARANASI, Varanasi for giving me an opportunity to pursue this project.

I also wish to thank all those respondents who were patient enough in giving answer to the questionnaire.

Finally, I would like to extend my grateful thanks to all our friends and faculty members of Shepa, Varanasi whose assistance has a lot to me personally forthe completion of this research.

Sifat Siddiqui

B.B.A. 6th Sem.

Enrollment No. KA2K12/288 PREFACEThis survey has been conducted to check the fact that IMPACT OF COMPENSATION PACKAGE ON EMPLOYEES MORALE IN BHEL. This project is carried out to translate the theoretical knowledge of the subject into the field work. This project is carried out in the partial fulfillment of the BBA 6th Sem course of INSTITUTE OF COMPUTER SCIENCE & TECHNOLOGY, VARANASI.

Sifat Siddiqui

B.B.A. 6th Sem.

Enrollment No. KA2K12/288 CONTENTS1. PREFACE.

2. INTRODUCTION TO BHEL

Vision,Mission,and Values

Company profile

Unit profile

Business policy

Quality policy

Energy management policy

3. EMPLOYEE MORALE IN BHEL (ACCORDING TO FACTORIES ACT)

4. SURVEY REPORT METHODOLOGY

5. OBJECTIVES OF STUDY

6. EXECUTIVE SUMMARY

7. DATA ANALYSIS &INTERPRETATIONS

8. FINDINGS 9. SUGGESTIONS & FEEDBACK OF WORKERS

10. LIMITATIONS

11. ANNEXURE

12. BIBLIOGRAPHY

Company background

1956 - Company was set up at Bhopal in the name of M/s Heavy electrical (India) Ltd. in collaboration with AEI, UK. Subsequently, three more plants were set up at Hyderabad, Hardwar and Tiruchy. The Bhopal Unit was controlled by the company, the other three were under the control of Bharat Heavy Electricals Ltd. - The Company`s object is to manufacture of heavy electrical equipments. 1972 - In July the Operations of all the four plants were integrated. 1974 - In January Heavy electrical (India) Ltd was merged with BHEL. - For the manufacture of a wide variety of products, the company has developed technological infrastructure, skills and quality to meet the stringent requirements of the power plants, transportation, petro chemicals, oil etc. - BHEL has entered into collaboration which are technical in nature. Under these agreements, the collaborators have transferred, furnished the information, documentation, including know-how relating to design, engineering, manufacturing assembly etc. 1982 - BHEL also entered into power equipments, to reduce its dependence on the power sector. BHEL Heavy Equipment Repair Plant (HERP), Varanasi set up in 1984.

BHEL has

1. Installed equipment for over 1,00,000 MW of power generation-for utilities ,captive and industrial users worldwide.

2. Supplied over 225000MW a transformer capacity and other equipment operating in transmission and distribution network up to 400Kv (AC& DC)

3. Supplied over 25000 motors with drive control system to power projects, petro chemicals, refineries, steel, aluminum, fertilizers, cement plants etc.

4. Supplied traction electrics and AC/DC locos to power over 12000kms railway network.

5. Supplied over one million valves to power plants and other industries.

BHEL caters to core sectors of the Indian economy viz; power generation & transmission, industry, transportation, telecommunication, renewable energy, defence etc. the wide network of BHELs 14 manufacturing divisions, four power sector regional centers, over 100 project sites, eight service centers and 14 regional offices enables the company to be closer to its customers and provide them with suitable products, systems and services efficiently and at

competitive prices. Having attained ISO 9000 certification, BHEL is now well on its journey towards total quality management (TQM). On the environmental management front, the major units of BHEL have4 already acquired the ISO 14001 certification,

Power sector

Power generation sector comprises thermal, gas, hydro and nuclear power plant business. As of 31-3-2008, BHEL supplied sets account for nearly 85,786 MW or 64% of the total installed capacity of 1,34,697 MW in the country, Significantly, there sets generated an all-time high 454.59 Billion Units of electricity contributing 73% of the total power generated in the country.

BHEL has proven turnkey capabilities for executing power projects from concepts to commissioning. The company has introduced new rating thermal set of 270 MW, 525 MV, 600 MV in subcritical range and possesses the technology & capability to produce large capacity thermal set with super critical parameters and gas turbine-generator sets. Co-generation and combined-cycle plants have been introduced to achieve higher plant efficiencies. To make efficient use of the high ash-content coal available in India, BHEL supplies circulating fluidized bed combustion boilers to both thermal and combined-cycle power plants.

The company manufactures 220/235/500/540 MW, nuclear turbine generator sets. Custom-made hydro sets of Francis, Pelton and Kaplan types for different head discharge combinations are also engineered and manufactured by BHEL. In all, orders for more than 700 utility sets of thermal, hydro, gas and nuclear have been placed on the company as on date. The power plant equipment manufactured by BHEL is based on contemporary technology comparable to the best in the world, and is also internationally competitive.

The company has proven expertise plant performance improvement through renovation, modernization and upgrading of a variety of power plant equipment, besides specialized know how of residual life assessment, health diagnostics and life extension of plants.

Transmission

BHEL also supplies a wide range of transmission products and systems of up to 400KV class. These include high voltage power & instrument transformers, dry type transformers, shunt & series reactors switch gear, 33KV gas insulated sub-station capacitors, insulators etc. for economic transmission of bulk power over long distances, High Voltage Direct Current

(HVDC) systems are supplied. Series and shunt compensation systems, to minimize transmission loses, have also been supplied.

Industry sector

Industries

BHEL is a major contributor of equipment and systems to industries: cement, sugar, fertilizer, refineries, petrochemicals, steel, paper etc. the range of systems and equipment supplied includes: captive power plants, dg power plants, high speed industrial drive turbines, industrial boilers and axillaries, waste heat recovery boilers, gas turbines, heat exchangers and pressure vessels, centrifugal compressors, electrical machines, pumps, valves, seamless steel tubes and process controls, control systems for process industries, and control and instrumentation systems for power plants, defence and other applications. The company has commenced manufacture of large scale desalination plants to help augment the supply of drinking water to people.

Transportation

Mostly of the trains operated by the Indian railways, including the metro in Calcutta, are equipped with BHELs traction electrics and traction control equipment. The company supplies electric locomotives to Indian Railways and diesel shunting locomotives to various industries. 5000/4600 hp ac/dc locomotives developed and manufactured by BHEL have been supplied to Indian railways. Battery powered road vehicles are also manufactured by the company.

BHEL also supplies traction electrics and traction control equipment for electric locos, diesel electric locos, and EMUs/ DEMUs to the railways.

Telecommunication

BHEL also caters to telecommunication sector by way of small, medium, and large switching systems.

Renewable energy

Technologies that can be offered by BHEL for exploiting non-conventional and renewable resources of energy includes: wind electric generators, solar power based water pumps, lighting and heating systems.

The company manufactures wind electric generators of unit size up to 250 KW for wind farms, to meet the growing demand for harnessing wind energy.

International operations

BHEL has, over the years established its references in over 50 countries of the world, ranging from the united-states in the west to new-Zealand in the far-east. These references encompass almost the entire product range of BHEL, covering turnkey power projects of thermal, hydro and gas based type sub-station projects, rehabilitation projects, besides a wide variety of products, like switch gear, transformer, heat exchangers, insulators, castings and forgings. Apart from over 1100MW of boiler capacity contributed in Malaysia, some of the other major successes achieved by the company have been in Oman, Saudi Arabia, Libya, Greece, Cyprus, Malta, Egypt, Bangladesh, Azerbaijan, Sri lanka, Iraq etc. execution of overseas projects has also provided BHEL the experience of working with world renowned consulting organizations and inspection agencies.

Technology Up gradation and SURVEY REPORT and development

To remain competitive and meet customers expectations, BHEL lays great emphasis on the continuous up gradation of products and related technologies, and development of new products. The company has upgraded its products to contemporary levels through continuous in house efforts as well as through acquisitions of new technologies from leading engineering organizations of the world.

The corporate R&D division at Hyderabad leads BHELs SURVEY REPORT efforts in a number of areas of importance to BHELs product range. SURVEY REPORT and product development centers at each of the manufacturing divisions play a complementary role.

BHELs investment in R&D is amongst the largest in the corporate sector in India. Products developed in house during the last five years contributed about 8% to the revenues in 2007-08.

Products

Thermal Power Plants

Steam turbines, boilers and generators of up to 800 MW capacity for utility and combined-cycle applications;Capacity to manufacture boilers and steam turbines with supercritical system cycle parameter and matching generator up to 1000 MW unit size.

Steam turbines, boilers and generators of CPP applications; capacity to manufacture condensing, extraction, back pressure, injection or any combination of these types of steam turbines.Nuclear Power Plants

Steam generator & Turbine generator up to 700 MW capacity.

Gas-Based Power Plants

Gas turbines of up to 280 MW (ISO) advance class rating.

Gas turbine-based co-generation and combined-cycle systems of industry and utility applications.

There are other products given as follows:

Hydro Power Plants

DG Power Plants

Industrial Sets

Boiler

Boiler Auxiliaries

Piping System

Heat Exchangers and Pressure Vessels

Pumps

Power Station Control Equipment

Switchgear

Bus Ducts

Transformers

Insulators

Industrial and Special Ceramics

Capacitors

Electrical Machines

Compressors

Control Gear

Silicon Rectifiers

Thyristor GTO/IGBT Equipment

Power Devices

Transportation Equipment

Oil Field Equipment

Casting and Forgings

Seamless Steel Tubes

Distributed Power Generation and Small Hydro Plants

Systems and Services

BHEL at a glance

(Rs in Millions)

2007-08 2006-07 CHANGE (%)

Orders Received 50270 35643 41.0

Orders Outstanding 85200 55000 54.9

Turnover 21401 18739 14.2

Value added 8323 7182 15.9

Employee (Nos.) 43636 42124 3.6

Profit before tax 4430 3736 18.6

Profit after tax 2859 2415 18.4

Dividend 746 600 24.4

Dividend tax 127 93 36.8

Retained earnings 1986 1722 15.3

Total assets 29352 22280 31.7

Net worth 10774 8788 22.6

Total borrowings 95 89 6.3

Debt: equity 0.01 0.01 0.0

Per share (in Rupees)

Net worth 220.1 179.5 22.6

Earnings 58.4 49.3 18.4

Economic value added 1810 1657 9.2

BOARD OF DIRECTORS

CHAIRMAN & MANAGING DIRECTOR

Mr. K. Ravi Kumar

DIRECTORSMr. B.S. Meena

Dr. Surajit Mitra

Mr. Sanjay M. Dadlika

Mr. Ashok K. Aggarwal

Mr. Manish Gupta

Mr. Shekhar Datta

Mr. Madhukar

Mr. S. Ravi

DIRECTOR (Finance)Mr. C. S. Verma

DIRECTOR (E, R & D)Mr. C. P. Singh

DIRECTOR (HR)

`Mr. Anil Sachdev

DIRECTORS (IS & P)Mr. B. P. Rao

COMPANY SECRETARYMr. N. K. Sinha

Varanasi, PlantBHEL, Tarna,

Shivpur, Varanasi,

221003

Achievements

BHEL has put in place a number of initiatives, as follows,.1. Strengthening companys core businesses of Power Generation, Transmission & Distribution, Transportation and Industrial Systems & Products, through accelerated project completion and consequent benefits to customers, along with new initiatives in marketing, technology, facility up-gradation and modernization, enhancing operational effectiveness etc.i. .2. Business Development efforts in related and allied areas utilizing the organizational strengths and forming customer focused specialized business groups e.g. formation of Oil Sector R&M Business Group to address business in Renovation and Modernization of off-shore and on-shore oil platforms, downstream petroleum refining areas and Power Plant Operational Services Group to provide Operations and Maintenance (O&M), Services for Power Plants.

3. After Market Services being the areas for future growth, spares and R&M services business have been integrated into one focused group. R&M for hydro sets is an area having major growth opportunity which BHEL is poised to tap.

a. .4. Exploring Business opportunities in areas like Energy Conservation, Water Management, Pollution Control and Waste Management, Ports, LNG terminals etc.

5. Positioning for Information technology Business leveraging the domain knowledge in Power Sector& Engineering field to provide IT enabled services for Power Sector and software services for Engineering Industry.

Sustain and Enhance Exports for products and services through multi-pronged approaches like entering new territories, focus on product sales, entry into IPP

segment, offering O&M and LTSA, EPC, becoming a service center for international Original Equipment Manufacturers (OEMs) and setting up of manufacturing assembly and repair centers in the regions of demand etc.BHEL is also taking steps to re-position it-self to meet the demands of the new market economy through suitable strategies keeping in view the ultimate objective of enhancing value for its stakeholders.RISKS AND CONCERNS1. Since most of the projects in industry are being contemplated on BOO/BOOT basis, various issues viz. business model of the Project, revenue collection, operation and maintenance etc. would need to be suitably addressed to gain entry in the business.

2. Railways have indicated 3% growth in 10th plan as against 6% growth during the 9th plan, which would result in scanty order flow for Electric locos and dip in demand for electrics for Locos.

3. Collaborators are increasingly restricting export territories under license agreements in order to protect their market share in territories outside India particularly where BHEL has built up references and strengths.RECENT ACHIEVEMENTS OF BHEL

1. BHEL got Shram Bhushan Award

2. BHELs Finance got ICWAI Award for Excellence in Cost Management

3. BHEL's R&D contributed Rs 50,270 crore turnover in 2007-08

4. BHEL manufactured 800 MW thermal sets

5. BHEL net profit up 60 pc Unit profile BHEL (HERP), VARANASI

About BHEL: HERP (Heavy Equipment Repair Plant), Varanasi

Varanasi is endowed with five universities; Lord Buddhas first preaching center and many religion/cultural centers, situated near holy Ganga, with Lord Kashi Vishwanath Temple at the heart of it. HERP is located at Shivpur, 11 Kms from main railway station and 15 Kms from Varanasi Airport.

HERP is also situated at the center of the largest power belt of northern region. This power belt supplies 10650 MW of power to the country. In the line with BHELs of providing constant services at their doorsteps, the idea of establishing repair shop in the vicinity of power station was mooted objective.

Accordingly two repair at BoBBAy & Varanasi came into existence, the foundation equipment repair plant sprawling in 29.8 acre area at Varanasi was laid on 20th September 1984 by Chief Minister of U.P. Shri Narayan Dutt Tiwari with-in a short span of 21 month much before the schedule.

Starting a manufacturer of O & M spares for the boiler and boiler auxiliaries, repair activities got a real break in 1990 when rebooting of TG set bearing was taken up in the plant. Since than rebooting of different types of bearing including an unconventional synchronous consider has been carried out to the entire satisfaction of the customers. Now HERP manufactures turbine spares, tools & tackles complete spares of bowl mill XRP 623, 803, 883 & 1003. The unit has a plant to add Constant load hanger, Variable load hanger & condensate polishing unit in near future.

Through small in size, HERP has been in adequate attention to all the facts of plant operation like computerization, inventory control, quality assurance. In order to channelizes the creative energy of employees suggestion scheme and quality circle and productivity improvement project are in operation.

HERP takes pride in being one of the best among BHEL unit in term of value added per employee. It has a track reward of continuing harmonious industrial relations.

Being a public sector, HERP is aware of social responsibility as a corporate citizen as quality of like for the residents of nearby area.

Heavy Equipment Repair Plant, Varanasi:

Heavy Equipment Repair Plant, Varanasi has highly skilled & dedicated technicians, engineers & specialist catering the requirements of various power plants of their mill and turbine O & M spares. HERP has contributed a lot in refurbishing of various units of NTPC after taking it over from SEBs and is a major player in Govt. of India PIE program.

Range of Products/Services Provided By HERP

Bowl Mill XRP/XRS 623, 703HP, 783, 803, 803HP ,883, 1003 spares

Turbine fasteners

Repair/Rebabbiting of TG bearings

Rotor machining

Spares for Boiler Auxiliaries like Coal Burners, Fuel Piping, ESP, Air Pre heater & R.C. Feeder etc.

Hydro Turbine component machining like Guide Vanes, Guide Bearings.

Tools & Tackles of Steam Turbines

Limiter Assembly, Oil Filter Assembly & Speed Changer Assembly of Governing System. Customers HERPs customers are various SEBs viz. APGENCO, BSEB, CSEB, MSEB, MPEB, PSEB, RVUNL, TNEB, UPRVUNL, NTPCs, OPPs & Private Power Plants.

Partners

Our partners & suppliers include our sister units viz. Haridwar, Bhopal ,Tiruchy, Hyderabad, Jhansi as well as various ancillaries developed by various units of BHEL.

TOTAL QUALITY FOCUS HERP has achieved certification of ISO 9001, ISO 14001 & OHSAS 18001 and targeted TQM score during 03-04. Unit level TQ council is committed to words improvement on regular basis in line with the organizational goals. The other apex level committee like HMC, PQC & PEC is also having meetings as per schedule for reviewing as per agenda keeping in view, the interest of our stakeholders.

Business Policy

In line with companies Vision, Mission, Values, we dedicate ourselves to sustained growth with increasing Positive Economic Value Addition and Customer focused business leadership in the Power & Industry Sector

One of the major strengths of HERP Varanasi is its free, open and consistent work culture for making continuous improvement. To recognize employee participation & valued suggestions HERP has always been recognizing their good efforts. Felicitation letters are distributed on 15th & 26th January regularly.

VISION: To become a continuously growing world class company. To harness the growth potential & sustain profitable growth.

To deliver high quality & cost competitive products & to be the first choice of customers.

Create an inspiring work environment to unleash the creative energy of people.

Achieve excellence in enterprise management.

Be a respected corporate citizen, ensure clean & green environment & develop vibrant communities.

MISSION:

To be an Indian Multinational Engineering Enterprise providing Total Business Solution through Quality Products, Systems and Services in the fields of Energy, Industry, Transportation, Infrastructure and other potential areas.

VALUES:

Commitment

Customer satisfaction

Continuous improvement

Concern for environment

Creativity & innovation

BUSINESS POLICY

In-line with company's vision, mission and values, we dedicate ourselves to sustained growth with increasing positive economic value addition, customer focused Business Leadership and welfare of society.

QUALITY POLICYIn its quest to be World-class, BHEL pursues Continual Improvement in the Quality of its Products, Services and Performance leading to Total Customer Satisfaction and Business Growth, through dedication, commitment and team work of all employees.

Employee morale

Organizations provide benefits and facilities to their employees to keep their motivation levels high. The employee morale can be classified into two categories viz. statutory and non-statutory motivation schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization and from industry to industry.

STATUTORY WELFARE SCHEMES

The statutory motivation schemes include the following provisions:

1.Drinking Water: At all the working places safe hygienic drinking water should be provided.

2.Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.

3.First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.

4.Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.

5.Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.

6.Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.

7.Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.

8.Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

9.Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES

Many non statutory motivation schemes may include the following schemes:

1.Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up

2.Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs

3.Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

4.Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.

5.Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

6.Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

SURVEY REPORT Methodology

The data for the proposed study in BHEL will be obtained through a mix of data sources like:-

Primary Data: The primary data is the information which is collected for the first time and thus happens to be original in character. It is obtained through observation and through direct communication with the respondents. It includes the collection of data through questionnaires.The primary data for the thesis will be collected through the following tools like: A questionnaire that includes different parameters like job security, training, flow of communication, Health Safety and Environment aspects, job satisfaction, Physical infrastructure etc., and

Personal interaction with the employees.

Secondary Data: The Secondary data is the information which is already available i.e., they refer to the data, which has already been collected and analyzed by someone else.The secondary data for the thesis is collected through the following tools like: Personal files of employees

Internet

Magazines

SAMPLE SIZE

As we know that the study is based on the sample size so having this point in mind, I have determined the sample size of employees. One questionnaire was given to every employee and after discussion and taking their opinion; I have analyzed them carefully with aid of my guides and concluded the result. OBJECTIVES OF STUDYThe main objectives of the study conducted on the title IMPACT OF COMPENSATION PACKAGE ON EMPLOYEES MORALE IN BHEL were as follows-

To know about the medical facilities provided to the employees in BHEL.

To know about job security in BHEL.

To collect information about the satisfaction of workers for canteen services and rates of food.

To know about the restroom facilities.

To collect information concerned with the New Year gifts and satisfaction level of the workers for it.

To collect information related to the training and development imparted to the employees.

To know about the job satisfaction to the employees.

To search about the facilities related to the festival/ vehicle/ house building advances etc.

To collect information about the benefits and facilities provided to the employees.

Keeping all these objectives in mind the data was collected.

EXECUTIVE SUMMARY

MOTIVATION

: Motivation is processes that account for an individuals intensity, direction, and persistence of effort toward attaining a goal.

Motivation is the willingness of a person to exert high levels of effort to satisfy some individual need or want.

Motivation is usually strong, when one has a vision, a clear mental image of a certain situation or achievement.

Motivation can be applied to every action and goal.

Motivation strengthens the ambition, increases initiative and gives direction, courage, energy and the persistence to follow one's goals.

DEFINITION

Motivation has been defined as: the psychological process that gives behavior purpose and direction ; a predisposition to behave in a purposive manner to achieve specific, unmet needs ; an internal drive to satisfy an unsatisfied need ; and the will to achieve . All in all, motivation is operationally defined as the inner force that drives individuals to accomplish personal and organizational goals.

THEORIES OF MOTIVATIONAbraham Maslows Need Hierarchy Theory:One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, this kind of need ceases to be a motivator.

As per his theory this needs are :

(i) Physiological needs :These are important needs for sustaining the human life. Food, water, warmth, shelter, sleep, medicine and education are the basic physiological needs which fall in the primary list of need satisfaction. Maslow was of an opinion that until these needs were satisfied to a degree to maintain life, no other motivating factors can work.

(ii) Security or Safety needs:These are the needs to be free of physical danger and of the fear of losing a job, property, food or shelter. It also includes protection against any emotional harm.

(iii) Social needs:Since people are social beings, they need to belong and be accepted by others. People try to satisfy their need for affection, acceptance and friendship.

(iv) Esteem needs:According to Maslow, once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfaction as power, prestige status and self-confidence. It includes both internal esteem factors like self-respect, autonomy and achievements and external esteem factors such as states, recognition and attention.

(v) Need for self-actualization:Maslow regards this as the highest need in his hierarchy. It is the drive to become what one is capable of becoming; it includes growth, achieving ones potential and self-fulfillment. It is to maximize ones potential and to accomplish something.

As each of these needs are substantially satisfied, the next need becomes dominant. From the standpoint of motivation, the theory would say that although no need is ever fully gratified, a substantially satisfied need no longer motivates. So if you want to motivate someone, you need to understand what level of the hierarchy that person is on and focus on satisfying those needs or needs above that level.

Maslows need theory has received wide recognition, particularly among practicing managers. This can be attributed to the theorys intuitive logic and ease of understanding. However, SURVEY REPORT does not validate this theory. Maslow provided no empirical evidence and other several studies that sought to validate the theory found no support for it.

Theory X and Theory Y of Douglas McGregor :McGregor, in his book The Human side of Enterprise states that people inside the organization can be managed in two ways. The first is basically negative, which falls under the category X and the other is basically positive, which falls under the category Y. After viewing the way in which the manager dealt with employees, McGregor concluded that a managers view of the nature of human beings is based on a certain grouping of assumptions and that he or she tends to mold his or her behavior towards subordinates according to these assumptions.

Under the assumptions of theory X :

Employees inherently do not like work and whenever possible, will attempt to avoid it.

Because employees dislike work, they have to be forced, coerced or threatened with punishment to achieve goals.

Employees avoid responsibilities and do not work fill formal directions are issued.

Most workers place a greater importance on security over all other factors and display little ambition.

In contrast under the assumptions of theory Y :

Physical and mental effort at work is as natural as rest or play.

People do exercise self-control and self-direction and if they are committed to those goals.

Average human beings are willing to take responsibility and exercise imagination, ingenuity and creativity in solving the problems of the organization.

That the way the things are organized, the average human beings brainpower is only partly used.

On analysis of the assumptions it can be detected that theory X assumes that lower-order needs dominate individuals and theory Y assumes that higher-order needs dominate individuals. An organization that is run on Theory X lines tends to be authoritarian in nature, the word authoritarian suggests such ideas as the power to enforce obedience and the right to command. In contrast Theory Y organizations can be described as participative, where the aims of the organization and of the individuals in it are integrated; individuals can achieve their own goals best by directing their efforts towards the success of the organization.

Frederick Herzbergs motivation-hygiene theory :Frederick stated that there are certain satisfiers and dissatisfiers for employees at work. In- trinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction. He devised his theory on the question : What do people want from their jobs ? He asked people to describe in detail, such situations when they felt exceptionally good or exceptionally bad. From the responses that he received, he concluded that opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. He states that presence of certain factors in the organization is natural and the presence of the same does not lead to motivation. However, their nonpresence leads to demotivation. In similar manner there are certain factors, the absence of which causes no dissatisfaction, but their presence has motivational impact.

Examples of Hygiene factors are :

Security, status, relationship with subordinates, personal life, salary, work conditions, relationship with supervisor and company policy and administration.

Examples of Motivational factors are :

Growth prospectus job advancement, responsibility, challenges, recognition and achievements.

McClellands Theory of Needs :David McClelland has developed a theory on three types of motivating needs :

1. Need for Power

2. Need for Affiliation

3. Need for Achievement

Basically people for high need for power are inclined towards influence and control. They like to be at the center and are good orators. They are demanding in nature, forceful in manners and ambitious in life. They can be motivated to perform if they are given key positions or power positions.

In the second category are the people who are social in nature. They try to affiliate themselves with individuals and groups. They are driven by love and faith. They like to build a friendly environment around themselves. Social recognition and affiliation with others provides them motivation.

People in the third area are driven by the challenge of success and the fear of failure. Their need for achievement is moderate and they set for themselves moderately difficult tasks. They are analytical in nature and take calculated risks. Such people are motivated to perform when they see atleast some chances of success.

McClelland observed that with the advancement in hierarchy the need for power and achievement increased rather than Affiliation. He also observed that people who were at the top, later ceased to be motivated by this drives.

Equity Theory:

As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the reward structure as being fair or unfair, relative to the inputs. People have a tendency to use subjective judgment to balance the outcomes and inputs in the relationship for comparisons between different individuals. Accordingly :

If people feel that they are not equally rewarded they either reduce the quantity or quality of work or migrate to some other organization. However, if people perceive that they are rewarded higher, they may be motivated to work harderRESEARCH METHDOLOGY OF THE THE PROJECT

PROBLEM FORMULATIONTo find out the role of compensation package in building up morale of employees and also to know how compensation and other facilities are helpful in morale building ip and also to know the effect on overall target and performance level of BUEL Management.OBJECTIVES OF THE PROJECT

To study about the compensation package and corresponding satisfaction level of employees in BHEL, Varanasi.

To know the expectations of employees regarding their package and facilities provided by BHEL Management.SCOPE THE STUDY

This project is mainly concerned with compensation package given to an employee in BHEL, Varanasi and their impact on morale of their employees.

PERIOD OF STUDY

Two to three monthsRESEARCH METHOD OF THE STUDYTypes of Research:-

Exploratory Research.

Scope of Research:-

The scope of research is restricted to th employees of BHEL, Vranasi, so both qualitative and quantitative data are compiled in the study.

Sources of Information:-

Both primary sources and secondary sources are used for the study.

Statistical tools: (Data collection Method) :- Questionnaire and interview Method. Sampling techniques: - - Due to large number of employees, it is not possible to study each and every individual, so as to overcome these problems, I have follOWed simple random Sampling Method.

Sampling unit and sample size:-Each respondent was considered as a single unit during the survey and the sampling was done .units, taking the total employees of BHEL, Varanasi into consideration that is.. units.SIGNIFICANCE OF STUDY

1. From this study I shall be able to evaluate the impact of compensation on building up morale in an organization.

2. From this study I shall be able to learn about coffesponding satisfaction level on the basis of cornpnsation package.

3. Impact of employees morale and satisfaction level on overall performance of BNEL.

4. This study will also help in finding out the expectation level of employees from the employers of BHELLIMITATIONS OF THE STUDY1. Time perspectives and time constraints.

2. There was a small budgetary (money) constraint.

3. Language constraints.

4. Sometimes respondents dont answer about their saving and investment behavior.

5. Lack of interest in some respondents.

6. Personal biasness of respondent.

7. Sample is small with respect to huge population of BHEL.

8. Survey is restricted to BHEL only.

Q.1 Job security is there for all the employees of BHEL?S14

E14

E24

E34

E54

Interpretation:

It can be seen from the above that at an average of 4of S1,E1,E2,E3,E4 and E5 grade employees agree to the opinion that there is a job security at BHEL. Q.2 Training and development is imparted to the employees of BHEL.

S11.67

E13

E22.67

E32.33

E53.333

Interpretation:

It can be seen from the above that at an average of 3.33 E5 grade employees are satisfied with the training and development provided to them,average of 3 E1 grade,2.67 E2 grade,2.33 E3 grade and 1.67 S1grade agree to the point. Q.3 Training, imparted at BHEL, is as per the identified needs.S13

E12.67

E21.33

E32.67

E52.33

Interpretation:

It can be seen from the above that at an average of 3 S1 grade employees are more satisfied with the training and development provided to them are as per the required job,average of 2.67 E1and e3 grade,2.33 E5 grade and 1.33 E2grade satisfy to the point. Q.4 Free flow of communication exists between the boss and sub-ordinates at BHEL.S15.33

E13.33

E22.67

E32.33

E55.33

Interpretation:

It can be seen from the above that at an average of 5.33 S1 and E5 grade employees agree that there exists free flow of communication between seniors and subordinates,average of 3.33 E1 grade,2.67 E2 grade and 2.33 E3 grade agree to the point. Q.5 Seniors involve sub-ordinates in decision making.S11.67

E12.33

E21.33

E32.33

E52.67

Interpretation:

It can be seen from the above that at an average of 2.67 E5 grade employees are satisfied that seniors involve subordinates in descision making,average of 2.33 E1and E3 grade,1.67 S1 grade and1.33 E2 grade satisfy with the point. Q.6 BHEL follows the best practices for employee growth?

Interpretation:

It can be seen from the above that at an average of 2.33 E5 grade employees are satisfied with the employee growth in BHEL,average of 2 E1, average of 1.67 E3 grade,average of 1 E2 grade and average0.67 S1 grade satisfy with the point. Q.7 Good Suggestion & Award Scheme is satisfactorily implemented at BHEL.

S12.67E12.67E22.67E33.33E54

Interpretation:

It can be seen from the above that at an average of 4 E5 grade employees agree that goo suggestions and award schemes are provided in in BHEL,average of 3.33 E3 and average of 2.67 S1,E1,E2 grade agree to the point.

Q.8 The benefits / facilities that are provided by the company boost the morale of employees.S11.33

E12

E22

E32.67

E53.33

Interpretation:

It can be seen from the above that at an average of 3.33 E5 grade agree that the benefits and facilities provided increases the morale of the employees,average of 2.67 E3, average of 2 E1 and E3 grade and average 1.33 S1 grade agree to the point. Q.9 The benefits / facilities that are being implemented in BHEL are transparent.S11.33

E11.33

E22.67

E32

E52

Interpretation:

It can be seen from the above that at an average of 2.67 E2 grade satisfy that their exists transparency in benefits and facilities provided to the emplees,average of 2 E3 and E5 and average 1.33 S1 and E1 grade satisfy to the point. Q.10 Compensation offered at BHEL is commensurate with the job?S11

E12.33

E22.67

E33.33

E54

Interpretation:

It can be seen from the above that at an average of 4 E5 grade satisfy that compesation offered communserates with the job,average of 3.33 E3, average of 2.67 E2,average of 2.33 E1 grade and average 1 S1 grade satisfy to the point. Q.11 What do you feel about the medical facilities provided in BHEL?

S12.67

E13.33

E22

E34

E54

Interpretation:

It can be seen from the above that at an average of 4 E3 and E5 grade says very good medical facilities are provided to the employees,average of 3.33 E1, average of 2.67 S1 grade and average 2 E2 grade satisfy to the point.

Q.12 Are you satisfied with the qualities of gifts provided to you at different occasions?

S11

E12.67

E22

E31.33

E52.67

Interpretation:

It can be seen from the above that at an average of only2.67 E1 and E5 grade are satisfied with the gifts provided to them at different ocassions,average of 2 E2, average of 1.33 E3 grade and average 1 S1 grade satisfy to the point.

Q.13 How do you about the festival advance scheme?S11.67

E13.33

E22.67

E34

E53.33

Interpretation:

It can be seen from the above that at an average of 4 E3 grade says very good festival advance schemes are provided to the employees,average of 3.33 E1 and E5 grade, average of 2.67 E2 grade and average 1.67 S1 grade satisfy to the point.

Q.14 Are you satisfied with the vehicle subsidy, house/ building loan subsidy provided by the BHEL?

S11.67

E11.67

E22

E34

E54

InterpretationIt can be seen from the above that at an average of only4 E3 and E5 grade are satisfied with the vehcile and house loan subcidy provided,average of 2 E2, and average 1.67 S1 and E1 grade satisfy to the point.Q.16 Are you satisfied with the group insurance schemes?

S12

E12.67

E22

E31.67

E51.33

InterpretationIt can be seen from the above that at an average of only2.67 E1 grade are satisfied with the group insurance schemes provided,average of 2.67 E1 grade, average of 2 S1 and E2 grade and average 1.67 E3 grade satisfy to the point.

Q.17 Are you satisfied with the services provided in canteen?

S11.33

E12

E22

E31.67

E52

InterpretationIt can be seen from the above that at an average of only2 E1,E2 and E5grade are satisfied with the services provided in canteen ,average of 1.67 E3 grade and average 1.33 S1 grade satisfy to the point.

Q.18 what do you feel the rewards and incentives provided the employees of BHEL should be-

S12.67

E12.33

E22.33

E31.33

E51.67

InterpretationIt can be seen from the above that at an average of 2.67 S1 grade says that rewards and insentives prividede should be monetary as well as non monetary ,average of 2.33 E1 and E2 grade,average of 1.67 E5 grade and average 1.33 E3 grade satisfy to the point.

Q.19 Appraisal system followed at BHEL motivates employees.S10.67

E11.33

E20.33

E30.67

E51.33

InterpretationIt can be seen from the above that at an average of 1.33 E1 and E5 grade are satisfied with the appraisal system of BHEL,average of 0.67 S1 and E3 grade and average 0.33 E3 grade satisfy to the point.

Q.20 Does the employees of BHEL feel empowered?

S11.33

E12.33

E21.33

E31

E52

InterpretationIt can be seen from the above that at an average of 2.33 E1 grade feel that they are empowered,average of 2 E5 grade, average of 1.33 S1 and E2 grade and average 1 E3 grade satisfy to the point.

FINDINGS

Following are the findings that have emerged out of the feed back collected through Questionnaire:

Most of the employees have given positive feed back on every question pertaining to the company.

Most of the employees feel that BHEL is a good place to work.

Many associates feel that there is a job security at BHEL.

Most of the employees are satisfied with the Suggestion & Award scheme that is available.

Many of the employees feel that excellent Training and Development is imparted as per the identified needs.

Most of the BHEL associates feel that there is free flow of communication and cordial relations exist between boss and sub-ordinates.

Many associates feel that seniors involve sub-ordinate in decision-making.

Most of the associates agree that the company follows best practices for employee growth and long term welfare.

Most of the associates are of the opinion that benefits / facilities provided are transperant and boosts their morale to certain extent.

Most of them feel satisfied that they are associated with BHEL.

LIMITATIONS

1. TIME FACTOR: The study has been completed during a short period .so it was not possible to study the problems well in details.

2. NON AVAILABILITY: Non availability of the right persons creates the problem in getting right and accurate information.

3. REGION FACTOR : Region factor was also problem only executives of personnel department were chosen for collecting the information .

ANNEXUREI Safat Siddiqui student of INSTITUTE OF COMPUTER SCIENCE & TECHNOLOGY, VARANASI is conducting a survey for my project work. And, this data will be kept confidential.

Age of the employee: ____________ Department:_________________Employee grade:_______________

____________________________________________________________________________________

Questionnaire

Q.1 Job security is there for all the employees of BHEL?

a) Agree b) Disagree

c) Partially agree d) Do not agree

Q.2 Training and development is imparted to the employees of BHEL.a) Satisfied b) very satisfied

c) Partially satisfied d) not satisfied

Q.3 Training, imparted at BHEL, is as per the identified needs.a) Satisfied b) very satisfied


Q.4 Free flow of communication exists between the boss and sub-ordinates at BHEL.



Q.5 Seniors involve sub-ordinates in decision making.a) Satisfied b) very satisfied


Q.6 BHEL follows the best practices for employee growth? a) Satisfied b) very satisfied


Q.7 Good Suggestion & Award Scheme is satisfactorily implemented at BHEL.



Q.8 The benefits / facilities that are provided by the company boost the morale of employees.



Q.9 The benefits / facilities that are being implemented in BHEL are transparent.a) Satisfied b) very satisfied


Q.10 Compensation offered at BHEL is commensurate with the job?



Q.11 What do you feel about the medical facilities provided in BHEL?

a) Good b) very good

c) Average d) needs attention

Q.12 Are you satisfied with the qualities of gifts provided to you at different occasions?

a) Satisfied b) very satisfied


Q.13 How do you about the festival advance scheme?

a) Good b) very good

c) Average d) needs attention

Q.14 Are you satisfied with the vehicle subsidy, house/ building loan subsidy provided by the BHEL?



Q.15 The death relief fund scheme contribution per employee is

a) Sufficient b) not sufficient

c) need to be increased d) cant say

Q.16 Are you satisfied with the group insurance schemes?



Q.17 Are you satisfied with the services provided in canteen?



Q.18 what do you feel the rewards and incentives provided the employees of BHEL should be-

a) Monetary only b) non-monetary only

c) Both d) other than these

Q.19 Appraisal system followed at BHEL motivates employees. a) Satisfied b) very satisfied


Q.20 Does the employees of BHEL feel empowered?



BIBLIOGRAPHY

1. Human Resource Management (Sanjay Shah)

2. Personnel management (Kshitij Jain)

3. BHEL Manual

4. BHEL Annual report EMBED Excel.Chart.8 \s

_1341749717.xlsChart1

2162003-042003-04

2462004-052004-05

2982005-062005-06

3592006-072006-07

2202007-082007-08

Rs.

YEAR

RUPEES

NET WORTH PER SHARE

Sheet1

2003-042004-052005-062006-072007-08

Rs.216246298359220

_1341749720.xlsChart1

164782003-042003-04

182302004-052004-05

189382005-062005-06

356432006-072006-07

502702007-082007-08

Rs.

YEAR

Rs. in million

VALUE ADDED

Sheet1

2003-042004-052005-062006-072007-08

Rs.1647818230189383564350270

_1341749725.xlsChart1

103362004-052004-05

145252005-062005-06

187392006-072006-07

214012007-082007-08

8662

YEAR

Rs(Million)

TURNOVER

Sheet1

2003-042004-052005-062006-072007-08

866210336145251873921401

_1341749715.xlsChart1

26.892003-042003-04

38.952004-052004-05

68.62005-062005-06

98.662006-072006-07

58.412007-082007-08

Rs.

YEAR

RUPEES

EARNINGS PER SHARE

Sheet1

2003-042004-052005-062006-072007-08

Rs.26.8938.9568.698.6658.41

Documents

Research Report Safat