study of the QWL at LTK

L&T KOMATSU LIMITED

SL.NO. TITLE PAGE NO.PART –AEXECUTIVE SUMMARY 1

1. INDUSTRY PROFILE 6 2. COMPANY PROFILE 112.1 BACKGROUND AND INCEPTION OF THE COMPANY 112.2 NATURE OF THE BUSINESS CARRIED OUT 132.3 QUALITY POLICY , VISION , MISSION 152.4 PRODUCT PROFILE 172.5 AREA OF OPERATION 182.6 QWNERSHIP PATTERN 182.7 COMPETITORS INFORMATION 182.8 INFRASTRUCTURAL FACILITIES 192.9 AWARDS AND ACHEIVEMENTS 202.10 WORK FLOW MODEL 232.11 FUTURE GROWTH AND PROSPECTS 243. McKENSY’S 7S FRAME WORK 254. SWOT ANALYSIS 365. ANALYSIS OF FINANCIAL STATEMENT 376. LEARNING EXPERIENCE 40

PART-B1. GENERAL INTRODUCTION 411.1 INTRODUCTION OF QUALITY OF WORK LIFE 411.2 STATEMENT OF THE PROBLEM 461.3 OBJECTIVES OF THE STUDY 461.4 SCOPE OF THE STUDY 461.5 METHODOLOGY 491.6 LIMITATIONS OF THE STUDY 502. ANALYSIS AND INTERPRETATION 513. FINDINGS , CONCLUSION AND RECOMMENDATIONS 81

ANNEXURE 84BIBLIOGRAPHY 87

DEPARTMENT OF MANAGEMENT STUDIES , SIR M.VIT , BANGALORE

L&T KOMATSU LIMITED

EXECUTIVE SUMMARY

L&T-Komatsu Limited, a joint venture of L&T and Komatsu, Japan, a world leader in Hydraulic

Excavators, manufactures state of-the-art Hydraulic Excavators at its Bangalore Works. L&T-

Komatsu received ISO 9001 accreditation for manufacture, marketing and service of Hydraulic

Excavators and also received recognition from BIS, through the ‘Rajiv Gandhi Quality Award

- Best in All’ category. Earlier the ‘Golden Peacock’ Quality Award was conferred by the

Institution of Directors. The Company received ISO 14001 certificate for its Environment

Management System and certificate of commendation for ‘Business Excellence 2000’ – CII-

EXIM Business Excellence Award and OHSAS 18001Certification for Occupational Health and

Safety Management System.

My report consists of the following details:

1. Profile of the Industry.-

The burgeoning construction sector has harbingered good times for companies

manufacturing construction machineries and equipment. The appreciable increase in the real

estate and construction activities has resulted in a surge of demand for excavators..

The construction equipment industry in India is growing at a blistering pace of 30 percent

annually-driven by huge investments by both the government and private sector in infrastructure

and construction development.

2. Profile of the Company-

The evolution of L&T into the country's largest Engineering and Construction Organization is

among the most “remarkable success stories” in Indian Industry. L&T - Komatsu's

manufacturing facility - Bangalore works - comprises two manufacturing divisions they are

Machinery Works and the Hydraulics Works. The Machinery Works manufactures various

Hydraulic Equipments required for the manufacture of Hydraulic Excavators by the Hydraulic

Works. They also supply customized Hydraulic Systems to Komatsu Ltd. Japan.


L&T KOMATSU LIMITED

3. LTK’s Mckinsey 7 ‘S’ model:-

The 7-S model is a tool for managerial analysis and action that provides a structure with which to

consider a company as a whole, so that the organization's problems may be diagnosed and a

strategy may be developed and implemented. Those seven elements are distinguished as Hard

S’s and Soft S’s. The hard elements i.e., Structure, Staff and System are feasible and easy to

identify. The Four soft S’s i.e., Shared Value, Skills, Strategy and Style are hardly feasible.

4. SWOT analysis:-

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project or in a business venture. It involves specifying

the objective of the business venture or project and identifying the internal and external factors

that are favorable and unfavorable to achieve that objective.

STATEMENT OF THE PROBLEM-

A STUDY ON “THE QUALITY OF WORK LIFE AT L&T KOMATSU Ltd.”

OBJECTIVES-

To study the quality of work life of employees at LTK. To study the various factors that affect quality of work life. To know how the various activities, working conditions , and other benefits help to

bring a better quality of work life.To give suggestions ( if needed ) to improve the quality of work life.


http://en.wikipedia.org/wiki/Business

http://en.wikipedia.org/wiki/Project

L&T KOMATSU LIMITED

METHODOLOGY

RESEARCH DESIGN OF THE STUDY-

DISCRIPTIVE RESEARCH TECHNIQUE-

Gathering and presenting the statements of fact through questionnaire method and interview

schedule.

SOURCES OF DATA-

Primary Data:

It was collected through structured questionnaire.

Secondary Data:

It was collected from textbooks, magazines, journals, company profile, internet.

Sample unit – employees

Sampling technique – Random sampling technique

Sample size – 100

Tools used for data collection:

Structured questionnaire were administered to employees in order to collect the information

Method of analysis

Tabular columns were used to arrange the data in a systematic way, the statistical tools like

percentage analysis is used and shown through diagram for analysis and interpretation of the

data.

LIMITATIONS OF THE STUDY

The sample size was limited to 100 because of time constraint.

Due to the busy schedule of the employees, few forms were received with no comments.

Analysis and interpretation of data is done on the assumption that the information given

by the respondents is unbiased.

Converting qualitative data into quantitative data may lead to inaccurate results

The respondents may not have expressed them strong negative feelings about the

policies, which results in the error of central tendency.


L&T KOMATSU LIMITED

FINDINGS

All the respondents feel that the conditions on their job allow them to be productive. Thus it is clear that the conditions on the job are congenial to raise the productivity of the workers which is very essential for both the management and workers to achieve their objectives of higher productivity.

A minor 20% agreed that the organization provides high quality tools to do the job. A 68% remained neutral , and a 8% disagreed and a 4% strongly disagreed. Thus it can be concluded that there is no positive attitude towards the provision of tools.

Only a mere 4% are satisfied with the oppourtunities for promotion. Hence it can be concluded that the chances for promotion are not attractive among the employees..

Job security is the vital factor to assess the quality of the work life in any organization. Since the job security in the study sample ensures that there are majority chances for good performance ,the quality of work life is up to the expectation.

The relationship between the peers is satisfactory at LTK which creates a healthy work life and better productivity.

The superior – subordinate relation plays a vital role in determining the quality of work life in an organization. 88% of the respondents agreed that there are good relations with their supervisor.and 12% disagreed. The employees are also satisfied with the helpind tendency of their supervisors.

Most of the employees are of the opinion that their work is stresssfull. , though manageable , if allowed uncontrolled will spoil the quality of work ..

A considerable number of 44% of employees are unhappy with their pay and this may have a negative effect on the quality of work life and motivation to work.

. The employees family members are made part of the company through various activities like picnics, competitions and other activities. This leads to a healthy and satisfactory work life at LTK.

Most of the workers are of the opinion that they are proud to work in LTK. 20% strongly agreed that they are proud to to be part of LTK, 76% agreed, and the remaining 4% are neutral. Thus the image of the company in the minds of the workers is very high, which is very essential for improving the quality of work life in it.


L&T KOMATSU LIMITED

SUGGESTIONS AND RECOMMENDATIONS-

A considerable number of employees feel that there is no equal treatment at work place. Even though the organization is completely unbiased , there may be few unseen issues or politics among the employees which leads to such decisions ,.Better consideration and deeper investigation into this matter is needed to satisfy the employees , as equal treatment is the first step to a better work life.

Only a mere 20% of the employees are happy about the tools provided at work. This may be due to the sophistication of the tools. The employees should be completely educated about the tools provided to them and good quality , user friendly tools should be provided.

There is very poor satisfaction towards the promotion oppourtunities in the company. Better care should be taken to provide equal oppourtunities for promotion.

Pay plays an important role in satisfying the employees in any organization. Keeping in mind that human beings are never satisfied ,in L&T KOMATSU LTD. we see that 44% of the employees are not satisfied with their pay. Since the settlement is going to expire within a few months , the company must take care this time to completely satisfy the employees demands .

CONCLUSION -

The management plays a very important role in making the Company achieve success in domestic and world markets. To be the best, the company focuses on providing a great quality of work life to its employees. From the study, it is clear that quality of work life of employees in L&T KOMATSU Pvt Ltd., is good. This research highlights some of the small gaps in employee’s satisfaction towards the company. L&T KOMATSU Pvt Ltd aims to promote the peaceful industrial relations and good organization which is highlighted by management and the employees. Since employees are the backbone of the company they should be satisfied in order to improve the business in the higher competitive market of the liberalized economy. The employees’ across different levels of management are satisfied by their association with the organization, the leadership styles of the managers and supervisors, work culture ,the interpersonal relationships,welfare facilities and other factors that motivate employees to perform their responsibilities efficiently. The company believes in employee’s satisfaction and effective productivity hours. Quality mission includes not only the quality of the products but also the Quality of Work Life.


L&T KOMATSU LIMITED

1. INDUSTRY PROFILE

1.1.Introduction

Excavator is a self-propelled crawler or wheel mounted machine, with an upper structure,

capable of a minimum of 360° rotation, which excavates, elevates, swings and discharges

material, by the action of a bucket fitted to the boom and the arm or telescopic boom, without

moving the chassis or under-carriage, during any part of the working cycle of the machine.

Hydraulic Excavator is a multipurpose Earthmoving machine which can perform many duties in

the field such as digging the earth, mining, loading, quarrying, etc., apart from other activities

like well-digging, material handling. The Excavator is the only “Earthmoving” machine capable

of working in 3-dimensions in all directions.

Companies engaged in the manufacture of Hydraulic Excavators are:

1. Larsen and Toubro Limited, Bangalore (L&T)

2. Bharth Earth Movers Limited, Bangalore (BEML)

3. Heavy Engineering Corporation, Ranchi (HEC)

4. Hindustan Motors Limited, Calcutta (HML)

5. Stanford Engineering Limited, Delhi (STANFORD)

6. J C Bamford Excavators Limited (JCB)

7. Tata Engineering Locomotive Co Ltd., Jamshedpur (TELCO)

I SECTOR PERFORMANCE

GLOBAL SCENARIO:

Exporters of construction machineries too are riding the boom wave with the bagging orders

from West Asian and African countries. Most of them have managed to the net huge profits with

many registering as high as a threefold increase.


L&T KOMATSU LIMITED

The boom has started a rippling effect touching various other spheres of activity that

are not directly related to construction. Manufacturers of ancillary products such as crane, ropes,

cables, pulleys and buckets too are benefited from the boom.

Indian construction majors working on overseas projects have opened the world for this Industry.

They are getting hefty orders from these companies to source their projects. Companies have

also begun getting enquiries from real estate contractors and construction companies of these

countries. They are working overtime to meet their demand deadlines.

While domestic requirement is driving the growth rates in the construction equipment

industry, export today are relatively low. India’s construction equipment sector has a market size

of €1.49 billion; a fraction of the global market is over €5.67 billion. The global industry is

growing at a 5%, while the Indian construction equipment sector is growing at the rate of 30%

annually.

The Indian Capital equipment industry has,

The advantage of high technical talent base

Established component vendor base

Low labor rate

All raw materials for a competitive product.

Excavator market is Asia and Latin America market are rising at a faster rate. It’s estimated that

in next 5 years, the domestic excavator manufacturer should make use of this opportunity and

seek for agents, attend large-scale exhibition to explore international market.

INDIAN SCENARIO:

The burgeoning construction sector has harbingered good times for companies manufacturing

construction machineries and equipment. The appreciable increase in the real estate and

construction activities has resulted in a surge of demand for transit concrete mixers, bar-bending

and cutting machines, excavators and backhoes and earth rammers.


L&T KOMATSU LIMITED

The construction equipment industry in India is growing at a blistering pace of 30 percent

annually-driven by huge investments by both the government and private sector in infrastructure

and construction development.

The Rs 10,000-crore worth construction machinery industry in the country is undergoing a

steady transformation by moving from low volume, intensive use of equipment structure to high

volume, and specific use one.

The rapid growth in economy has accentuated the need for improving infrastructure. State

governments, development authorities and even companies have begun investing in

infrastructure development projects. Moreover, the central government has invested heavily in

irrigation and mining projects across the country. All these factors have contributed immensely

to the increased use of construction machinery.

Before the opening up of the Indian economy, the entry of international majors, much of

infrastructure development and construction in the real estate sector was done manually. But

with the infrastructure and construction sectors undergoing dramatic changes- with 60-storeyed

sky-scrapers being built in cities like Mumbai, and thousands of kilometers of expressways and

highways being laid cross the sub-continent- builders and contractors are acquiring sophisticated

equipment sector, which has adapted rapidly to the changed scenario, this is indeed good news,

as it paves the way for an exciting future.

The opening up of the Indian economy and the booming infrastructure and real estate sectors

attracted international giants including JCB, Volvo, Terex, Caterpillar and Hitachi.

In all there are about 200 domestic construction equipment manufactures (small, medium and

large). Telco construction Equipment Company (Telcon), Tata firm is a major player in this

sector.


L&T KOMATSU LIMITED

II SECTOR POLICY

PEST Analysis:

PEST Analysis is a simple but important and widely used tool that helps us to understand

the big picture of the Political, Economic, Socio-Cultural and Technological environment that

businesses operate. PEST is used by business leaders worldwide to build their vision of,

Political:

Political scenario of our country is very unstable. Because of this instability policies keep

changing which in turn affects industries, which involve imports and exports.

The mining industry is set to save tens of thousands of dollars and the cost of imported heavy

equipment, thanks to new changes to custom duties. The federal government says it will remove

the three percent customs duty applying to most imported heavy equipment.

Economic:

The rapid growth in the economy has accentuated the need for improving infrastructure. State

government, development authorities and even companies have begun investing in infrastructure

development projects. Moreover, the Central Government has invested heavily in irrigation and

mining projects across the country. All these factors have contributed immensely to the increased

use of construction machinery. As the industry has a wide domestic market it is not affected by

rupee appreciation.

India has a large and growing middle class population of 300 million people, out of which a large

section is need on new houses. It is estimated that there is a national hosing storage of 41 million

units. Retailing is becoming the boom industry with organized retail being a market of €4.494

billion. Water supply and sanitation projects alone offer scope for annual investment of €4.27

billion. The ministry of power has formulated a blueprint to provide reliable, affordable and

quality power to all users by 2012. This calls for an investment of €54.67 billion in the next 5

years. All those pose a great opportunity for this industry.


L&T KOMATSU LIMITED

Social and Cultural:

Life style now has taken a paradigm shift. Because of the growth in the economy and nuclear

families, investments are being made on houses. This has given a big opportunity to construction

industry, in turn to equipment industry. India with more young and working population has

posed a great opportunity for this industry.

Technological:

Word Technology is attached to continuous change, so is with the Excavator Industry. Even

though applications where excavators used are same, the ways they are used are not same. As

these machines are used in tough conditions demand for increased safety is high. Majority of the

Indian Players have collaborated or joint ventured with foreign companies. Most of the times

technology is bought from them. So India is on par with the global standards. Still continuous

modification is needed to suit the changing conditions. Fuel efficiency, life of these machines is

high. For 360 degrees structure hydraulic motors are suitable. So technology of these machines is

not very dynamic as in case of IT industry.

III. INDUSTRY STRUCTURE


L&T KOMATSU LIMITED

2. COMPANY PROFILE

2.1. BACK GROUND AND INCEPTION OF L&T-KOMATSU

The evolution of L&T into the country's largest Engineering and Construction Organization is

among the most “remarkable success stories” in Indian Industry.

L&T was founded in Bombay (Mumbai) in 1938 by two Danish Engineers,

Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly committed to

developing India’s Engineering capabilities to meet the demands of industry.

Henning Holck-Larsen(4/7/1907– 27/7/2003)

Soren Kristian Toubro(27/02/1906 –04/03/1982)

Beginning with the import of machinery from Europe, L&T rapidly took on Engineering and

Construction assignments of increasing sophistication. Today, the company sets global

Engineering benchmarks in terms of scale and complexity.

Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark, would not have

dreamt, as they were learning about India in history classes that they would, one day, create

history in that land.


L&T KOMATSU LIMITED

In 1938, the two friends decided to forgo the comforts of working in Europe, and started their

own operation in India. All they had was a dream. Their first office in Mumbai (Bombay) was so

small that only one of the partners could use the office at a time.

In the early years, they represented Danish manufacturers of dairy equipment for a modest

retainer. But with the start of the Second World War in 1939, imports were restricted, compelling

them to start a small work-shop to undertake jobs and provide service facilities.

Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced

the partners to stand on their own feet and innovate. They started manufacturing dairy equipment

indigenously. These products proved to be a success, and L&T came to be recognized as a

reliable fabricator with high standards.

The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation

of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and

fabrication shops - the Company had begun to expand.

Again, the sudden internment of German engineers (because of the War) who were to put

up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area

where their capability became well respected.

Larsen & Toubro group started in 1975 to manufacture Hydraulic Excavators. On 1st Feb 1998 it

entered into a Joint Venture with 50:50 equity participation from L& T and Komatsu Asia

Pacific Pte, Singapore, a wholly owned subsidiary of Komatsu Limited Japan. LTK -BW is the

largest manufacturer of Hydraulic Excavators and high-pressure Hydraulic systems and

components.


L&T KOMATSU LIMITED

2.2. NATURE OF THE BUSINESS CARRIED-

L&T - Komatsu's manufacturing facility - Bangalore works - comprises two manufacturing

divisions they are the Machinery Works and the Hydraulics Works. The Machinery Works

manufactures various Hydraulic Equipments required for the manufacture of Hydraulic

Excavators by the Hydraulic Works. They also supply customized Hydraulic Systems to

Komatsu Ltd. Japan.

The various products of Hydraulic works are Hydraulic Motors, Pumps, Turning Joints,

Hydraulic Cylinders, Hoses, Valve bank, Power packs of different varieties.

The plant employs about 660 people among which 244 management staff and 416 people

belongs to unionized category.

The company publishes one-house magazine every quarter in the name of Bangalore Blooms.

The magazine also serves the purpose of providing an opportunity for employees to give their

experience to their literary talents. Family members are also given an opportunity to show their

creative ability.

1. Engineering & Construction Projects:

E-Engineering solutions

Hydrocarbon & related projects

Food Processing & Pharmaceutical Machinery

Petrochemical Projects

Oil & Gas for special projects

Cement & Allied Machinery

Nuclear Power & Allied Business

2. Construction

Building –Factories, Parks, Hotels, Public Buildings

Transportation – Roads & Expressways, Bridges, Stations, Underpass, Complex

Runway & Airway

Civil Infrastructure – Ports, Harbors

Nuclear and Hydro power projects

3. Minerals & Metals


L&T KOMATSU LIMITED

Electrical, Instrumentation and Communication

Electrification works in power, steel, metallurgical, glass, fertilizer

Transmission Lines and Electrification

4. Heavy Engineering

Heat Transfer Equipment

Pressure Vessels

Refinery & Cracker Plant equipment

Equipment & Systems for power plant

Industrial Machinery

Rubber Processing Machinery

Plastic Engineering

5. Electrical & Electronics

Control Power Grade Projects

Motor Starters

Energy Meters

Wires & Cables

Electrical Systems & Equipment

Currently L & T Komatsu, Bangalore works Ltd is in the first place in manufacturing excavators

and Caterpillar holds the second place. It holds a market share of 43%.

2.3. PEOPLE BEHIND L&T:


L&T KOMATSU LIMITED

QUALITY POLICY-

Provide resources to maintain & continually improve the quality management system with a view to deliver quality products and services.

Operate under the framework of quality, cost and delivery objectives.

Train and build awesome among our entire employee to enhance, customer satisfaction on a continuous basis.

VISION-

L&T shall be a professionally managed, Indian multinational committed to total customer

satisfaction and enhancing shareholder value.

L&T-employees shall be an innovative, entrepreneurial and empowered team, constantly

creating value and attaining global benchmarks.

L&T shall foster a cultural of caring, trust and continuous learning while meeting

expectations of employees, stakeholders and society.

MISSION-


L&T KOMATSU LIMITED

We manufacture & market products & services for Indian and select overseas markets,

servicing Earthmoving & Construction Industry and oil fields.

We are also in the business of Diesel Engines, Gensets and Hydraulic Drives & Systems.

Our focus is to achieve Cost leadership in all our business operations. We shall attain

market Leadership by providing products and services of high reliability, backed by

Quick response to customer needs

We shall strive for total customer satisfaction and achieve significant Improvement in

Returns on fund employed.

We shall be a world-class company dedicated to excellence and professionalism.

Customer delight through total quality and service shall be our guiding force.

We shall foster a spirit of Entrepreneurial leadership and be a vibrant learning

organization.

L&T-ites shall be an inspired team, empowered by a culture of trust and caring to serve

all stakeholders.

We shall be committed to community service and environmental protection.


L&T KOMATSU LIMITED

2.4. PRODUCT PROFILE-


L&T KOMATSU LIMITED

2.5. AREA OF OPERATION-

L&T has a global presence. A thrust on International Business over the years has seen overseas

revenues growing steadily. The company has manufacturing facilities in India, China, Oman and

Saudi Arabia. It has a global supply network with offices in 10 locations worldwide, including

Houston, London, Milan, Shanghai, and Seoul. Customers include global majors in over 30

countries.

2.6. OWNERSHIP PATTERN-

Ownership Pattern of L&T-Komatsu Limited is 50-50 Joint Venture. In which 60 crores is

invested by L&T and 60 crores by Komatsu Limited.

2.7. COMPETITORS-

L&T- Komatsu Limited has the following competitors:


45%

35%

20%

45%

35%

20%

L&T KOMATSU LIMITED

2.8. INFRASTRUCTURAL FACILITIES-

Manufacturing Facilities

Fabrication Technology:

1.CNC high-speed gas cutting process for consistent quality profiles with good surface finish

2.Axis Welding Robots for reliable welding and high strength point

3.CNC machines for precision machining of huge structures of high quality

4. Assembly line operating on the concept of single piece unidirectional flow with equal takt-time

5.Automated Assembly line for Hydraulic Equipment Manufacturing

6.Non destructive testing laboratory approved by Bhabha Atomic Research Centre, Mumbai

7.Equipment and qualified inspectors to carry X-ray, Gamma ray and Ultrasonic tests to ensure internal soundness of welded structures and castings


L&T KOMATSU LIMITED

2.9. AWARDS AND ACHEIVEMENTS-

Year Achievement

1975

Bangalore work established, L&T pioneered the concept of

Hydraulic excavator in India by manufacturing LC 80 / LY

80 models. (In Collaboration with Poclain, France)

1977 Introduced 90 CK model

1978 Introduced 300CK model

1979

Introduced 90 CK-E (indigenous model)

Introduced 300CK-E (indigenous model)

TT 900 Vibratory Soil Compactor introduced (in

Collaboration with Albaret France)

1981

Hydraulic Cylinders, Pumps, Turning Joints, were

manufactured

Introduction of 300CK model 2

1984 Hydraulic Motors, Valve blocks, hoses were manufactured

1985 90CK (Model 2) with 80 indigenous content manufactured


L&T KOMATSU LIMITED

1987 170CK model introduced

1989 Recognized as R&D house by GOI

1992Indigenous design & development of 72CK Excavator (first

time in India by any manufacturer).

1993Development of Hydraulic drives for shunting loco, Sugar

mill drives, Paddle feeders for coal handling equipment

199490CK Model - 3 introduced

ISO 9001 certification for construction equipment

1995 Transit mixer developed

1997

Assembly of 85 ton Dump truck

Won Golden peacock National Quality Award from Institute

Of Directors

1998

PC200 Excavator introduced

Won Rajeev Gandhi National Quality Award, BEST OF

ALL category from BIS

1999ISO 14001 Certification for Environmental

Management System

2000 Won CII-EXIM Commendation Certificate for Business


L&T KOMATSU LIMITED

Excellence

2002PC71 Excavator introduced

Travel & Swing Gear Carriers were manufactured

2003

High Speed Travel & Swing Motors were

Manufactured.

OHSAS 18001:1999

2005ISO 14001:2004 Certification

Greentech Gold Category Safety Award.

2006 Integrated Management System for EHS.

2007Certificate for integrated management system of ISO

14001:2004 & OHSAS 18001:1999 (EHS)

2.10. WORK FLOW MODEL-


L&T KOMATSU LIMITED

2.11. FUTURE GROWTH AND PROSPECTUS-


STEEL PLATES

CUTTING AND WELDING

SHOT BLASTING

PAINTING

ASSEMBLING

PRODUCT TESTING

L&T KOMATSU LIMITED

L and T-Komatsu, Bangalore Works plans for obtaining improved Reliability and Cost

Reduction for this year. Following would facilitate achieving this:

1. Resource management:

a) Implement TPM and number of equipment under TPM : >30

Cycle time (through put time) reduction : 25% from present

b) Inventory discrepancy : zero

Inventory adjustment : <1%

c) DOC/DOP/FG shall be less than :70/15/20 days

2. Control Direct Material Cost and Overhead expenses: 3% & 5% respectively less

than budgeted level

3. Improve capacity utilization

- Try for excavators exports

- Try for excavator new applications

- Increase hydraulic component exports to Komatsu/PH

- Increase hydraulic component sales to OEMs/new applications

4. Improve quality / reliability levels:

(a) first pass yield : 100% (start six sigma projects)

(b) commissioning problems : zero

(c) MTBF : >900 hrs (no machine less than 500 hrs)

(d) MTTR : < 2 days

5. Introduce new products:

6. Total employee involvement:

Kaizen : one person per month

SGA : 10 numbers in each PU/departments


L&T KOMATSU LIMITED

3. McKENSY’S 7S FRAME WORK

INTRODUCTION

The model starts on the premise that an organization is not just Structure, but consists of seven

elements:

7-S Model

The 7-S model is a tool for managerial analysis and action that provides a structure with which to

consider a company as a whole, so that the organization's problems may be diagnosed and a

strategy may be developed and implemented.

Those seven elements are distinguished as Hard S’s and Soft S’s. The hard elements i.e.,

Structure, Staff and System are feasible and easy to identify. They can be found in strategy

statements, corporate plans, organizational charts and other documentations.

The Four soft S’s i.e., Shared Value, Skills, Strategy and Style are hardly feasible. They are

difficult to describe since capabilities, values and elements of corporate culture are continuously

developing and changing. They are highly determined by the people at work in the organization.

Therefore it is much more difficult to plan or to influence the characteristics of the soft elements.

Although the soft factors are below the surface, they can have a great impact of the hard

Structures, Strategies and Systems of the organization.


L&T KOMATSU LIMITED

The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an

organization's ability to change. The theory helped to change manager's thinking about how

companies could be improved. It says that it is not just a matter of devising a new strategy and

following it through. Nor is it a matter of setting up new systems and letting them generate

improvements.

To be effective, your organization must have a high degree of fit or internal

alignment among all the 7 S. Each ‘S’ must be consistent with and reinforce the other S. All S

are interrelated, so a change in one has a ripple effect on all the others. It is impossible to make

progress on one without making progress on all. Thus, to improve your organization, you have

to master systems thinking and pay attention to all of the seven elements at the same time.

There is no starting point or implied hierarchy - different factors may drive the business in any

one organization.


L&T KOMATSU LIMITED

3.1 STRUCTURE-

Organization has clearly been segmented into different business sectors and the structure is

clearly demarcated for empowerment with regard to each product and/or sector of economy

which are managed by independent Strategic Business Unit as independent profit / growth

centers.


L&T KOMATSU LIMITED

ORGANOGRAM OF L&T KOMATSU


CHIEF EXECUTIVEM4B – S.R.

SUBRAMANIAN

CHIEF EXECUTIVEM4B – S.R.

SUBRAMANIAN

SECRETARYSECRETARY

DEPUTY CHIEF EXECUTIVE

CHI

DEPUTY CHIEF EXECUTIVE

CHI

MARKETINGMARKETING ACCOUNTSACCOUNTS TECHNICAL SERVICES

TECHNICAL SERVICES

PERSONNEL&

ADMINISTRATION

PERSONNEL&

ADMINISTRATION

HYDRAULIC

WORKS

QUALITY ASSURANCE (M2C)

MACHINERY

WORKS

SECRETARYSECRETARY

L&T KOMATSU LIMITED

3.2. SKILLS-

L&T has a very strong people-oriented process. For assessing the performance of employees

they have assessment process. For assessing the availability of future leaders, they have

leadership programs. There are a host of training programs – (both internal and external)

covering performance-oriented development programs, technical competence, personality

development etc. which cover the entire gamut of skills required for running the organization

effectively and profitably and also develop the individual as well.

SKILL MATRIX-

DESCRIPTIO

N

MANAGERIA

L

SKILLS

ANALYTICA

L

SKILLS

PEOPLE

ORIENTE

D SKILLS

COMMUNICATIO

N

SKILLS

TECHNICA

L

SKILLS

MOTIVATIONA

L

SKILLS

TEAM

WORKIN

G

SKILLS

MANAGERS

SUPERVISOR

S

EXECUTIVES × × × ×

TECHNICIAN

S

× × × ×


L&T KOMATSU LIMITED

3.3. STYLE-

Organization Culture

It is a set of some shared values, norms and belief systems that controls organization operations

and interaction with the members both inside & outside of the company.L&T Komatsu follows a

very distinct and insular culture throughout the company. The company incorporates various

activities, which help in the betterment of four factors that account for cultural differences

among the organization-

Organizational ethics

The property right system used by the organization

Organization structure

The characteristics of people working in the organization.

In L&T Komatsu Ltd Company, every employee needs to portray “officer like qualities”

which makes them different from their competitors. A unique characteristic of each

employee is that they contribute towards production and share the information to each other

as when required. The top managers are right to use organization resources. The work force

may be given rights to participate in decision making through various forums so that they can

help in achieving the goals of an organization of higher productivity, good quality and cost

reduction. The shareholders of the company are given the strongest property rights as they

own the resources of the employee and shares from profit.

Management Style

It’s all about the fundamental responsibility of employees in interacting with each department. The leadership style followed is participative and democratic style where participation of the employees in decision making is encouraged. It encourages the involvement of stakeholders at all levels of an organization in the analysis of problems, development of strategies, and implementation of solutions. Employees are invited to share in the decision-making process of the firm by participating in activities such as setting goals, determining work schedules, and making suggestions. The management treats the ideas and suggestions of employees with consideration and respect. By creating a sense of ownership in the company, participative


L&T KOMATSU LIMITED

management instills a sense of pride and motivates employees to increase productivity, more receptive to change, in order to achieve their goals.

3.4. STRATEGY-

The company has a rolling plan called Strategic Plan which spans a period of 10 years. The

strategic plans are dove-tailed to the company’s Mission and Vision statements. The plans are

reviewed annually and changes / course-corrections carried out in regard to additions of new

products to its portfolio, in line with the changing business and economic environment .The

present strategic plan is as follows.

Employee retention strategy-

At L&T KOMATSU Ltd. the management continuously strives to prevent the employees from

leaving the organization. Thus, they adopt many strategies for employee retention. When an

employee expresses his will to leave the organization, they will conduct an exit interview to

understand the actual reasons underlying his decision to resign. They will try to change his

decision by giving him some offers like –to increase his pay, to give him a promotion as soon as

possible, by offering him some incentives or trying to convince him that L&T is a better

organization than the one he is willing to join or by offering him some growth opportunities and


L&T KOMATSU LIMITED

the like and they finally see through that no employee leaves the organization. This automatically

adds up value to the organization.

3.5. SYSTEMS-

Being a professionally managed organization since 1938, there are separate Divisional

Boards to oversee/supervise the operations of each Operating Division. Further, there are sector

wise business meetings to take stock of the business parameters and take corrective action

wherever required. L&T has a very strong communication network for propagating company’s

plans, policies and procedures in order to keep everybody informed.

In L&T Komatsu, a number of software applications for different functions are provided by

Oracle. They are as follows.

Inventory

Bills of Material

Costing

Purchasing

Receiving

Physical Attributes

General Planning

MPS/MRP Planning

Lead Times

Work in Process

Order Management

Invoicing

Service

Attendance Recording system

GroupWise LAN.


L&T KOMATSU LIMITED

PERFORMANCE MANAGEMENT SYSTEM

REWARD - PERFORMANCE LINKAGE

F - Framework for linking A - Appraisal with I - Incentives R - Rewards


Blaming Environmental Factors

OBJECTIVE SETTING MEASURING PERFORMANCE

Objectives not consistent with Competence

Identify accurately &

Communicate performance drivers /Performance thrust areas/Theme down the line

Process given more importance than results

Individual performs but unit does not

REWARD RATING LINKAGE NOT STRONG

Senior managementappraisal system not evident

Not enough seriousness oftop management about process

Reluctance to give tough feedback

SERIOUSNESS OF TOP MANAGEMENT

ABOUT PA PROCESS

MANAGING EXPECTATIONS

Transfers from one Site / Unit / Location

L&T KOMATSU LIMITED

3.6.STAFF-

In L&T Komatsu Employees are categorized as below.

Unionized Category Management Category

T – Technical Category B – Superior Category

A – Administrative Category E – Executive Category

S – Skilled Category CA – Chartered Accountant

C – Covenant Category

MK – Japanese Representative

No of employees in each cadre are represented below:

S, T, AND A CADRE 416

B CADRE- SUPERVISORY 082

E CADRE- EXECUTIVE 048

M CADRE- MANAGERIAL 100

SUPERVISORY TRAINEES 010


TOTAL 656

L&T KOMATSU LIMITED

3.7. SHARED VALUES-

Values of the organization are mainly grouped into three main categories which are represented

below,


L&T KOMATSU LIMITED

4.. SWOT ANALYSIS-

STRENGTHS-

Recognition of performance (performance linked reward).

Network of dealership helping in better customer servicing.

Construction equipment division measures customer satisfaction by the means of

customer satisfaction index and to measure performance.

Technology upgrading in regular intervals.

Importing certain prime components.

90% of the components is made in house of key hydraulic components

Effective supervision.

Quality and schedule adherence.

Extensive testing facility.

High capability of product development which has been proved by the development of 12

ton excavator and upgrading 20,30,60 ton class to improve reliability and productivity.

WEAKNESSES-

More formalities is involved in the process of introduction of new product.

Growth or the promotion is time bound.

Limited scope for growth in the industry.

OPPOURTUNITIES-

Government projects like river linking, road linking, laying of optical fibers, etc.

Mining.

Introduction of new model (E.g.; PC200 is modified with the introduction of new attachment like

microprocessor control, which reduces vibration and enhances operator comfort)

THREATS-

Increasing steel prices.

Limited scope for exporting. and increased competition.


L&T KOMATSU LIMITED

5. ANALYSIS OF FINANCIAL STATEMENT-

5.1 BALANCE SHEET-

BALANCE SHEET Particulars 2008-09 2007-08 2006-07 2005-06 2004-05

Equity 2516866025.00 1477330074.00 1281839153.000 1200000000.00 1200000000.00

Debt 1939423106.00 562805129.00 859539837.00 893875000.00 993589451.00

Capital 4522876775.00 2040135203.00 2141378990.00 2093875000.00 2193589451.00

Gross Block Fixed Assets 2013311599.00 1690108925.00 1681849538.00 1672341875.00 1641924097.00

Less: Depreciation 1016366831.00 839465950.00 727582639.00 614646683.00 504988734.00

Net Block Fixed Assets 996944768.00 850642975.00 954266899.00 1057695192.00 1136935363.00

Capital Work In Progress 64307464.00 6175549.00 890000.00 8618539.00 6983437.00

Current Assets Inventories 2898541865.00 1239846883.00 884070009.00 542903516.00 492178885.00

Sundry Debtors 1273172989.00 946487381.00 1049240174.00 604326333.00 527029334.00

Cash and Bank Balances 1512611.00 42857550.00 8903244.00 71384648.00 802332.00

Loan and Advances 621868352.00 387648776.00 150408409.00 127629532.00 98831391.00

Total Current Assets 4795095817.00 2616840590.00 2092621836.00 1346244029.00 1118841942.00

Less: Current Liablities 1348281545.00 1470518208.00 1020281147.00 531015732.00 387763098.00

Working Capital 2098532727.00 1146322382.00 1072340689.00 815228297.00 731078844.00

Net Assets 3446814272.00 2003140906.00 2027497588.00 1881542028.00 1874997644.00

5.2 RATIO ANALYSIS-


L&T KOMATSU LIMITED

Ratio analysis is one of the powerful tools used in financial statement analysis. Ratio is defined

as “the indicated quotient of two mathematical expressions” and as “the relationship between

two or more things.”

ANALYSIS OF RATIOS-

2008-2009 2007-2008 2006-2007 2005-2006 2004-2005CURRENT RATIO 3.55 2.05 2.54 2.89 3.24

QUICK RATIO 1.4 0.94 1.18 1.51 1.62

DEBT-EQUITY RATIO 0.77 0.38 0.67 0.74 0.83

NET WORKING CAPITAL RATIO

1.39 1.31 1.03 0.72 0.60

a. CURRENT RATIO-

In a span of 4 years we can notice that the current ratio was declining and it suddenly increased.

As per convention a current ratio of 2:1 is preferred. In the year 2008-2009 the current rati is

3.55:1 , which is a great improvement from the previous years 1.78:1, which is slightly less than

the convention. In the year 2006-07 current ratio is almost equal to the convention, and in rest of

the years its more than 2:1.The current ratio represents the margin of safety for creditors. The

higher the current ratio, the greater the margin of safety, larger the amount of current assets in

relation to current liabilities, the more the firm’s ability to meet current obligations. It is possible

to conclude that company is in the position to meet its obligations if occurred.

b. QUICK RATIO-

Generally, a quick ratio of 1:1 is considered to represent a satisfactory current financial

condition. Here in the year 2008-2009 the quick ratio is 1.4:1while in the year 2007-08 the quick

ratio is 0.94:1 , which is slightly less than the criterion, and in all the other years it’s more than

the required criteria. In the recent year company does not suffer from shortage of funds nor from

prospering and paying its current obligations in time if it has been turning over its inventories

efficiently. It is one of the important indexes of the firm's liquidity.


L&T KOMATSU LIMITED

c. DEBT-EQUITY RATIO-

Debt is fallen compared to the previous year. This means that the company has paid back its long

term debts. Debt-Equity Ratio has slightly increased compared to the previous year.

d. NET WORKING CAPITAL RATIO-

It is the measure of firm’s liquidity. The ratio is in the increasing order. It shows the firm’s

potential reservoir of fund is increasing

6. LEARNING EXPERIENCE-


L&T KOMATSU LIMITED

My experience in L&T KOMATSU LIMITED was good and worthwhile as I learned many of the H.R related concepts that were important during the time of execution. It helped me a lot to relate my theory knowledge to the practical work. Major function of the department was to maintain the attendance recording system for the employees. Entering the leave records according to the leaves applied by them or number of absentees also is part of the ARS. It was nice to see that all were supportive and experienced in carrying out the work. I even shared the regular work that has to be done everyday and learnt how to be a HR person in the company.The department takes care of other functions such as social responsibilities towards society by conducting donation camps in rural places. The department follows both manual and computerized work for the future proof. I learned how to be interactive with employees in different departments.The company believes in quality and technology advancement. It has a healthy work environment.The practical work is slightly different from theory and is different for different companies. The rules and responsibilities are to be verified time to time to have control and to maintain good work atmosphere in the company. For all other supportive work, HR department is the path and is important for such activities. I learned how to overcome problems without conflicts which arise from workers and others. It is important to have communication with all departments to receive the data in time and to maintain good relations with workers and employeesAltogether it was a great experience in L&T KOPMATSU LIMITED , where I learned about many HR activities and how a HR manager plays a vital role in the organization through various functions. .

PART-B


L&T KOMATSU LIMITED

1, INTRODUCTION

1.1 WHAT IS QWL?

The term refers to the favourableness or unfavourableness of a total job environment for

people. QWL programs are another way in which organizations recognize their responsibility to

develop jobs and working conditions that are excellent for people as well as for economic

health of the organization. The elements in a typical QWL program include – open

communications, equitable reward systems, a concern for employee job security and satisfying

careers and participation in decision making. Many early QWL efforts focus on job enrichment.

In addition to improving the work system, QWL programs usually emphasize development of

employee skills, the reduction of occupational stress and the development of more co-operative

labour-management relations.

Vigorous Domestic and International competition drive organizations to be more

productive. Proactive managers and human resource departments respond to this challenge by

finding new ways to improve productivity. Some strategies rely heavily upon new capital

investment and technology. Others seek changes in employee relations practices.

Human resource departments are involved with efforts to improve productivity through

changes in employee relations. QWL means having good supervision, good working conditions,

good pay and benefits and an interesting, challenging and rewarding job. High QWL is sought

through an employee relations philosophy that encourages the use of QWL efforts, which are

systematic attempts by an organisation to give workers greater opportunities to affect their jobs

and their contributions to the organisation’s overall effectiveness. That is, a proactive human

resource department finds ways to empower employees so that they draw on their “brains and

wits,” usually by getting the employees more involved in the decision-making process.


L&T KOMATSU LIMITED

QWL is a prescriptive concept, it attempts to design work environments so as to

maximize concern for human welfare. QWL acts in two dimensions.

Goal

Process

QWL acts as goal by

Creation of more involving

satisfying and effective jobs

Work environment for people at all levels of the organization

QWL acts as process by

Make efforts to realize this goal through active participation

The whole essence of QWL may be stated thus, the QWL is co – operative rather than

authoritarian; evolutionary and open rather static and rigid; informal rather than mechanistic;

mutual respect and trust than hatred against each other.

The major three main objectives for the QWL are

Improve employees satisfaction strengthen workplace learning, and

Better manage on – going chance and transition


L&T KOMATSU LIMITED

MAJOR FACTORS AFFECTING THE QWL

QWL means having good supervision, good working conditions, good pay and benefits an

interesting and challenging, and a rewarding job. The major factors that effect the QWL may be

stated thus.

1.Pay

QWL is basically built around the concept of equitable pay. In the days ahead, employees may

want to participate in the profits of the firm as will. Employees must be paid their due share in

the progress and prosperity of the firm.

2.Benefits

Workers throughout the globe have raises their expectations over the years and now feel entitled

to benefits that were once considered a part of the bargaining process.

3.Job Security

Employees want stability of employment. They do not like to be the victims of whimsical

personal policies and stay at the mercy of employers.

4.Occupational Stress

Occupational mental-health programmes dealing with stress are beginning to emerge as a new

and important aspect of QWL programmes. Obviously, and individual suffering from an

uncomfortable amount of job-related stress cannot enjoy a high quality of work life. '

5.Worker Participation

Employees have a genuine hunger for participation in organizational issues affecting their lives.

Naturally they demand far more participation in the decision making process at the workplace.


L&T KOMATSU LIMITED

6.Social Integration

The work environment should provide opportunities for preserving an employee's personal

identify and self-esteem through freedom from prejudice, a sense of community, interpersonal

openness and the absence of stratification in the organization.

7.Work and total life space

A person's work should not overbalance his life. Ideally speaking, work schedules, career

demands and other job requirements should not take up too much of a person's leisure time and

family life.

8.Freedom

Beside signing jobs systems and structures to give people more freedom at work.

9.Reinforcement

Creating reward systems that are fair, relevant and contingent on work performance

10.Responsiveness

Making the work setting more pleasant and able to serve individual Needs.

11.Relationship between employee and organization

QWL deals with the relationship between every employee and his or her work organization. This

relationship is formal in sometimes less formal. This contract is psychological; contract.

"Psychological contract is the set of expectations held be the individual specifying what the

individual and the organization expect to give and receive from each other in the course of their

working relationship". This contract represents the expected exchange of values that encourages

the individual to work for the organization and motivates the organization to employ that person,

(i.e) Contribution and Inducements.


L&T KOMATSU LIMITED

A healthy psychological contract means that inducements and contributions are balance.

INDUCEMENTS = CONTRIBUTIONS

(Organization to employees) = (employee to organization)

This is the way for organization to create healthy psychological contract and Jobs

satisfaction for their members is to provide them with High QWL environment.

.

RESULTS OF HIGH QWL

High Productivity

Increase organizational effectiveness

High employee satisfaction

High morale .

Reduce the absenteeism and labour turn over

Increase the quality of life of employees

High employee involvement

Peaceful industrial relation


L&T KOMATSU LIMITED

1.2. STATEMENT OF THE PROBLEM-

A STUDY ON “ THE QUALITY OF WORK LIFE AT L&T KOMATSU Ltd.”

1.3. OBJECTIVES-

To study the quality of work life of employees at LTK. To study the various factors that affect quality of work life To know how the various activities , working conditions , and other benefits help to

bring a better quality of work life To give suggestions ( if needed ) to improve the quality of work life

1.4. SCOPE OF THE STUDY

Quality of work life covers various aspects under the general umbrella of supportive

organizational behavior. Thus, the QWL should be broad in its scope. It helps evaluate the

attitude of the employees towards the personnel policies

Employee surveys are rapidly emerging as a vital tool for organizations seeking to maximize

employee commitment, satisfaction and enhance overall business performance. Recent behavior

evidence linking a productive, effective, committed and satisfied work force to the entire service

profit chain is indisputable.

Exit interviews are often too late to address employee retention and problems. The employee

survey offers tremendous information about organization climate, employee behaviour and

problems. Employee survey allows an organization to understand employee perception.

Perception is reality, because employees at every organization act on the basis of their

perceptions. Management must be keenly aware of employee views. Quality of work life survey

serves as a successful means of measuring and acting upon employees current beliefs on many

job related subjects.

Hence this study is undertaken so as to determine the quality of work life at LTK and to

determine the various factors that affect the quality of work life and finally to identify the factors

that contributes towards increasing the level of quality work life.


L&T KOMATSU LIMITED

QWL PROGRAMMES AT L&T KOMATSU Ltd.

QWL programmes concentrate on creating a working environment that is Conductive to

the satisfaction of worker needs..The concept of welfare emanates from the fact that happy and

satisfied employees do always and invariably produce quality products to satisfy both internal

and external customers.

With this point in view, L&T’s philosophy with regard to extending welfare facilities for

employees in the Company is –

“Let the company be prosperous, so that the prosperity can be shared with the employees by

way of improved welfare measures”

. Some of the welfare activities adopted at L&T KOMATSU LTD. are. as follows-

Non-Statutory Statutory

1 Transport 1.Canteen facilities

2 Mediclaim 2.Occupational health

3 Group Insurance 3.Safety

4 Accident Benefits 4.Workers Education Scheme

5 Family Planning

6 Long Service Awards

7 Sports & Fine Arts

8 Death Relief and many more

• Manned by a male nurse – round the clock service – trained in CPR (cardio -

pulmonary resuscitation )


L&T KOMATSU LIMITED

• Annual medical examinations for various trades

• First aid treatment for all ailments / accidents

• Ambulance provided with all emergency medical equipments

• Referral to Nursing Home 3 KM away

• First-aid training from St. John’s Ambulance Association

• Large number of employees from all departments are trained.

• First-Aid boxes maintained at shop floors.

• List of trained persons in first-aid displayed

• Central Safety Committee, resolves safety issues

• Quality personal protective equipment are provided free of cost.

• Introduced at BW in 1978. Few employees trained as Worker Teachers.Training on

productivity, industrial relations, discipline, trade union movement, family budgeting,

labour laws, standing orders, etc

• Guest lectures are also conducted on special subjects like family planning, HIV/AIDS,

mental health, parenting, quality of life, money management, etc.

• Educational tour to understand working culture, organisation policies & programmes

• Mediclaim scheme for all employees & their family members

• Availed by

192 employees in 2005-06

139 employees in 2006-07

• Settled few life threatening cases through mediclaim

• Encouragement for employees to break the monotony.

• Bonding of employees of different departments


L&T KOMATSU LIMITED

• Break the social barriers - create the ‘We’ feeling.

• Personal counselling provided for employees by professional counsellor – for any

personal problems

• This facility is extended to the employees family too.

• Many more welfare activities are provided to have a good quality of work life.

1.5. METHODOLOGY

RESEARCH DESIGN OF THE STUDY-

Descriptive Research Technique:

Gathering and presenting the statements of fact through questionnaire method and interview

schedule.

SOURCES OF DATA-

Primary Data:

It was collected through structured questionnaire.

Secondary Data:

It was collected from textbooks, magazines, journals, company profile, internet.

Sample unit – employees

Sampling technique – Random

Sample size – 100

Tools used for data collection:

Structured questionnaire were administered to employees in order to collect the information

Method of analysis

Tabular columns were used to arrange the data in a systematic way, the statistical tools like

pe111rcentage analysis is used and shown through diagram for analysis and interpretation of the

data.


L&T KOMATSU LIMITED

1.6. LIMITATIONS OF THE STUDY

The sample size was limited to 100 because of time constraint.

Due to the busy schedule of the employees, few forms were received with no comments.

Analysis and interpretation of data is done on the assumption that the information given

by the respondents is unbiased.

Converting qualitative data into quantitative data may lead to inaccurate results

The respondents may not have expressed them strong negative feelings about the

policies, which results in the error of central tendency.

.


L&T KOMATSU LIMITED

2. DATA ANALYSIS & INTERPRETATION-

Generally research consists of two parts, namely, the gathering of data and analysis of data.

The mass of data gathered through sophisticated tools however valid, reliable and adequate,

is yet raw unless it is carefully edited, systematically classified and tabulated, scientifically

analyzed. Intelligently interpreted and rationally concluded. The analysis and interpretation

of data involves the objective material in the possession of the researcher and subjective

reactions to drive from the data. Analysis and interpretation represents the application of

deductive and inductive logic to the research process.

ANALYSIS

Analysis means breaking down the complexity of the structure with simpler elements and

putting these elements together in new combinations or patterns so as to discover new

relationships. This can be achieved only by viewing data from different angles and by

representing the data adequately.

INTERPRETATION

Interpretation refers to the starting of what the findings depict what they mean their

significance and help in drawing the answer to the original problem.

Interpretation of the analyzed data requires considerable skill and experience. It is a purely

subjective process. Hence, interpretation calls for a critical examination of the results of

one’s analysis in the light of all the limitations of his data gathering.

52

L&T KOMATSU LIMITED

CLASSIFICATION OF TABULATION

2. Gender.

Male Female

Gender 100 -

INFERENCE-All the respondents are male since the sample was taken from the hydraulic shops. Being a heavy machinery production company very few women are employed in this company unit.

53

L&T KOMATSU LIMITED

3. Age.

INFERENCE-Majority of the employees are experienced and fall in the age group 41-50.

54

20-30 31-40 41-50 51&above

Age 30 60 10

L&T KOMATSU LIMITED

4. Experience.

1-10 yrs 10-20 yrs 20-30 yrsExperience 0 75 25

INFERENCE-All the employees have a minimum experience of 10 years.75% of them have an experience of 10-20 yrs and 25% have an experience of 20-30 years. So we notice here that most of the employees are experienced hence increasing performance.

55

L&T KOMATSU LIMITED

5. Income level.

Rs.5000-10,000 10,000-15,000 15,000-20,000 Above 20,000

Income level 25 60 15

INFERENCE-

25% of the respondents have an income between Rs 10,000-15,000 , 60% between Rs15,000-

20,000 and the remaining 15% have above 20,000.Income plays a very important role in

employee satisfaction.

56

L&T KOMATSU LIMITED

6. Skills and abilities are used in full by employees.

1NFERENCEThe above graph reflects that a majority of 72% of respondents agreed that their job enables them to use their skills and abilities in full. While a 8% disagreed to this , a 20% of the response was neutral . hence it can be inferred that the work in the company is such that it allows almost all the workers to use their skill and ability in full.

57

Percentage of respondentsStrongly agree 0Agree 72%Neutral 20%Disagree 8%Strongly disagree

L&T KOMATSU LIMITED

7.. There is equal treatment at work place.

Percentage of respondentsStrongly agree 0%Agree 60%Neutral 8%Disagree 32%Strongly disagree 0%

INFERENCEThe above table shows that 60% of the respondents agree that there is equal treatment at work place. A 5% are neutral , and a 32% disagreed with this. Thus it can be concluded that the organization provides equal treatment at work place to some extent. If there is no proper equal treatment it demotivates the employee. It is a very important factor in determining the quality of work life in an organization.

58

L&T KOMATSU LIMITED

8. Conditions on job allow you to be productive.

INFERENCEFrom the above graph it is clear that 100% of the respondents feel that the conditions on their job allow them to be productive. Thus it is clear that the conditions on the job are congenial to raise the productivity of the workers which is very essential for both the management and workers to achieve their objectives of higher productivity.

59

Percentage of respondentsStrongly agree 0%Agree 100%Neutral 0%Disagree 0%Strongly disagree 0%

L&T KOMATSU LIMITED

9. There are opportunities to develop special abilities.

Percentage of respondentsStrongly agree -Agree 64%Neutral 20%Disagree 16%-Strongly disagree -

INFERENCEThe above graph reflects that 64% of respondents agree that there are opportunities in the company to develop special abilities.a 20% are neutral , while a 16% disagree to this. Hence it can be inferred that the opportunities available in the workplace to develop the special abilities of the employees is satisfactory. No doubt , the improvement of special abilities would definitely improve the quality of work life in the organization.

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L&T KOMATSU LIMITED

10. Organization provides enough guidance to get the job done.

Percentage of respondentsStrongly agree -Agree 92Neutral 8Disagree -Strongly disagree -

INFERENCEThe table reflects that 92% of the respondents agree that the organization provides enough guidance to get the job done while 8% are neutral. Hence it can be inferred that guidance at work , which is essential for the quality of work life is provided at LTK.

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L&T KOMATSU LIMITED

11. Organization provides high quality tools to do the job.

Percentage of respondentsStrongly agree -

Agree 20Neutral 68

Disagree 8Strongly disagree -

INFERENCEThe table reflects that 20% agreed that the organization provides high quality tools to do

the job. A 68% remained neutral , a 8% disagreed and a 4% strongly disagreed. Thus it can be concluded that there is positive attitude towards the provision of tools.

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L&T KOMATSU LIMITED

12 There are opportunities for promotion.

Percentage of respondentsStrongly agree -

Agree 4Neutral 52

Disagree 20Strongly disagree 24

←

INFERENCEThe above table shows that only a mere 4% are satisfied with the oppourtunities for promotion. A 52% are neutral ,20% disagreed and a 24% strongly disagreed. Hence it can be concluded that the chances for promotion are not attractive among the employees.

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L&T KOMATSU LIMITED

13 Safety of workers is at high priority.

Percentage of respondentsStrongly agree -Agree 8Neutral 84Disagree 8Strongly disagree -

INFERENCEThe above table reflects that only 8% of the respondents agreed that the safety of workers

is at high priority. While a major 84% remained neutral , 8% disagreed to this. Hence it can be concluded that the safety towards the employees need to be concentrated highly to ensure safe and secured work life.

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L&T KOMATSU LIMITED

14.The Infrastructure facilities are good.


INFERENCEThe above graph reflects that 12% of the respondents agreed that the infrastructure

facilities at LTK are good , 88% are neutral.

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L&T KOMATSU LIMITED

15.Satisfied with the following facilities

Facilities Yes NoFirst aid 88 12Lightening 100 -Ventilation 84 16Drinking water 88 12

Hygienic conditions 88 12Spacious work place 68 32Toilets 80 20

INFERENCEThe above table reflects that 88% of the respondents are satisfied with the first aid ,

drinking water and hygienic conditions. 100% are satisfied with lightening , 84% are satisfied with ventilation , 68% feel that the workplace is spacious and 80% are satisfied with the toilet facilities.

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L&T KOMATSU LIMITED

16. There is individual recognition in the company.


INFERENCEThe above table reflects that a majority of 80% of the respondents agreed that they are

recognized in the company and 8% are neutral and the remaining 12% disagreed.thus a majority of the employees feel that they are recognized by the company. This helps in creating a better and healthy work life and motivates the employees .

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L&T KOMATSU LIMITED

17 The compensation schemes adopted at L.T.K are satisfactory.

Percentage of respondentsStrongly agree -Agree 44Neutral 44Disagree 4Strongly disagree 8

INFERENCEFrom the above table we can infere that the employees are satisfied with the

compensation schemes adopted in their company. A 44% of the respondents agreed that they are satisfied , 44% of them had no opinion , 4% disagreed , and 8% are not at all happy with the compensation schemes adopted. . so we can conclude that in general the employees are happy with the compensation schemes adopted at LTK.

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18. There is security for job.

Percentage of respondentsStrongly agree 12Agree 68Neutral 12Disagree 8Strongly disagree -

INFERENCEThe above table shows that 12% of the workers strongly feel that there is security for

their job , 68% agreed with this , 12% are neutral , and only 8% feel that there is no security for their job. Job security is the vital factor to accecc the quality of the work life in any organization. Since the job security in the study sample ensures that there are majority chances for good performance and as a result the quality of work life is up to the expectation.

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19. There is helping tendency of the supervisor.


INFERENCEThe above table reflects that the helping tendency of the supervisor is up to the

expectations of the respondents. 68% agreed that their supervisors are lending their helping hands always and the remaining 32% are neutral. The helping tendencies of the supervisors determine the quality of work life in any organization , and it is up to the expectation level of the workers in the study sample.

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20. There are good relations with collegues.


INFERENCEThe above table reflects that there are good relations among the employees at LTK . 8%

of the respondents strongly felt that there are good relations with their collegues , 76% agreed with this , 8 % are neutral , and the remaining 8% felt that their relationship with their collegues is not good. Thus in general th relationship between the peers is satisfactory at LTK which creates a healthy work life and better productivity.

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21.There are good relation with supervisor.


INFERENCE88% of the respondents agreed that there are good relations with their supervisor , 12%

are neutral. Thus in general the relationship[ between the superior and the subordinates is satisfactory and up to the expectations. This leads to an expected qwality of work life as the superior – subordinate relation plays a vital role in determining the quality of work life in an organization.

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22. There are training opportunities to improve the quality of work.

Percentage of respondentsStrongly agree 8Agree 68Neutral 24Disagree -Strongly disagree

-

INFERENCEThe above table states that 8% of the workers strongly accept that there are training

opportunities which helps them to perform their job safely and competently. 68% of the respondents accept to some extent that the training opportunities are available and helpful . the remaining 24% are neutral. Training is very essential for quality of work life in any organization. The training opportunities offered in the company are up to the expectations of the workers at presents.

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23 Opinion about work stress.


INFERENCEThe above table reflects that all the employees are of the opinion that their work is

stresssfull. Among them 8% of the employees opinioned that the stress is always there in the work and a 20% feel that they often find their work stressfull. A 52% statedthat their stress is manageable and 20% felt that their work is stressful sometimes and not always. Hence it can be inferred that the work is stressful one , though manageable , if allowed uncontrolled will spoil the quality of work .

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24. Satisfied with pay.


INFERENCEThe above table atates that 40% are satisfied with their pay , 16% are of no opinion , and

44% are not satisfied with their pay. Thus we can infere that a considerable number of employees are unhappy with their pay and this may have a negative effect on the quality of work life and motivation to work.

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25.Supervisors accept suggestions.


INFERENCEThe above table shows that 80% of the respondents felt that thrie supervisor accept their

suggestions and get positive motivation for them.the remaining 20% are neutral.they may not have come across such experience. Though there is no need for the supervisor to accept all the

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suggestions offered by the workers , yet they shall be motivated by just considering their suggestions . thus we can see a healthy work life at LTK.

26. Transparency level is satisfactory.


INFERENCE

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The above table reflects that 64% of the respondents are satisfied with the transparency level at LTK , 24% are neutral and 12% are not satisfied with the transparency level .so we can conclude that a majority are happy with the transparency level maintained at the company.

27.Family members feel associated with the company.


INFERENCEThe above table reflects that 8% of the respondents strongly agree that their family

members feel associated with the company, 56% agreed , 28% are neutral and the remaining 8% felt that their family members are not associated with the company. So in general the association

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of the family members of the employees of the company is satisfactory. The employees family members are made part of the company through various activities like picnics, competitions and other activities. This leads to a healthy and satisfactory work life at LTK.

28. Balance between work life and personal life is good.

Percentage of respondentsStrongly agree 20Agree 68Neutral 12Disagree -Strongly disagree -

INFERENCE

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The above table reflects that the employees have a good balance between their work life and personal life. 20% strongly agreed that the balance between their work life and personal life is good , 68% agreed, and the remaining 12% are neutral. This shows that there is a good balance between work and personal life among the employees. The better the balance , the better is the quality of work life.

29. Family members take pride of you being a part of L.T.K.


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INFERENCEFrom the table we can infere that the employees are of the opinion that the family

members of the employees take pride of them being a part of LTK. 8% strongly agreed, 72% agreed, and the remaining 20% are neutral.

30 Proud to be a part of L.T.K.


INFERENCEThe above table shows that most of the workers are of the opinion that they are proud to work in LTK. 20% strongly agreed that they are proud to to be part of LTK, 76% agreed, and the

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remaining 4% are neutral. Thus the image of the company in the minds of the workers is very high, which is very essential for improving the quality of work life in it.

3. FINDINGS

A majority of 72% of respondents agreed that their job enables them to use their skills and abilities in full. While a 8% disagreed to this , a 20% of the response was neutral . Hence the work in the company is such that it allows almost all the workers to use their skill and ability in full.

60% of the respondents agree that there is equal treatment at work place. A 5% are neutral , and a 32% disagreed with this. Thus it can be concluded that the organization provides equal treatment at work place to some extent.

All the respondents feel that the conditions on their job allow them to be productive. Thus it is clear that the conditions on the job are congenial to raise the productivity of the workers which is very essential for both the management and workers to achieve their objectives of higher productivity.

The opportunities available in the workplace to develop the special abilities of the employees and to get the job done are satisfactory.

A minor 20% agreed that the organization provides high quality tools to do the job. A 68% remained neutral , and a 8% disagreed and a 4% strongly disagreed. Thus it can be concluded that there is no positive attitude towards the provision of tools.

Only a mere 4% are satisfied with the oppourtunities for promotion. Hence it can be concluded that the chances for promotion are not attractive among the employees..

A majority of the employees are satisfied with the welfare facilities provided like first aid , lightening , ventilation , drinking water , hygienic conditions , spacious work place , toilets etc..

The employees are satisfied with the compensation schemes adopted in their company. A 44% of the respondents agreed that they are satisfied , 44% of them had no opinion , 4% disagreed , and 8% are not at all happy with the compensation schemes adopted.

Job security is the vital factor to assess the quality of the work life in any organization. Since the job security in the study sample ensures that there are majority chances for good performance and as a result the quality of work life is up to the expectation..

There are good relations among the employees at LTK . 8% of the respondents strongly felt that there are good relations with their collegues , 76% agreed with this , 8 % are neutral , and the remaining 8% felt that their relationship with their collegues is not good. Thus in general the relationship between the peers is satisfactory at LTK which creates a healthy work life and better productivity.

The superior – subordinate relation plays a vital role in determining the quality of work life in an organization. 88% of the respondents agreed that there are good relations with their supervisor , 12% are neutral. Thus in general the relationship[ between the superior and the subordinates is satisfactory and up to the expectations.

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8% of the workers strongly accept that there are training opportunities which helps them to perform their job safely and competently. 68% of the respondents accept to some extent that the training opportunities are available and helpful . the remaining 24% are neutral.

Most of the employees are of the opinion that their work is stresssfull. , though manageable , if allowed uncontrolled will spoil the quality of work .

A considerable number of employees are unhappy with their pay and this may have a negative effect on the quality of work life and motivation to work.

A majority of 80% of the respondents felt that their supervisors accept their suggestions and get positive motivation for them..The remaining 20% are neutral as .they may not have come across such experience.

64% of the respondents are satisfied with the transparency level at LTK , 24% are neutral and 12% are not satisfied with the transparency level .so we can conclude that a majority are happy with the transparency level maintained at the company.

The association of the family members of the employees of the company is satisfactory. The employees family members are made part of the company through various activities like picnics, competitions and other activities. This leads to a healthy and satisfactory work life at LTK.

There is a good balance between work and personal life among the employees. The better the balance , the better is the quality of work life..

Most of the workers are of the opinion that they are proud to work in LTK. 20% strongly agreed that they are proud to to be part of LTK, 76% agreed, and the remaining 4% are neutral. Thus the image of the company in the minds of the workers is very high, which is very essential for improving the quality of work life in it.

SUGGESTIONS AND RECOMMENDATIONS.

A considerable number of employees feel that there is no equal treatment at work place. Even though the organization is completely unbiased , there may be few unseen issues or politics among the employees which leads to such decisions.better consideration and deeper investigation into this matter is needed to satisfy the employees , as equal treatment is the first step to a better work life.

Only a mere 20% of the employees are happy about the tools provided at work. This may be due to the sophistication of the tools. The employees should be completely educated about the tools provided to them and good quality , user friendly tools should be provided.

There is very poor satisfaction towards the promotion oppourtunities in the company. Better care should be taken to provide equal oppourtunities for promotion based on seniority as well as merit.

Pay plays an important role in satisfying the employees in any organization. Keeping in mind that human beings are never satisfied ,in L&T KOMATSU LTD. we see that 44% of the employees are not satisfied with their pay. Since the settlement is going to expire within a few months , the company must take care this time to completely satisfy the employees demands . .

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CONCLUSION

The management plays a very important role in making the Company achieve success in domestic and world markets. To be the best, the company focuses on providing a great quality of work life to its employees. From the study, it is clear that quality of work life of employees in L&T KOMATSU Pvt Ltd., is good. This research highlights some of the small gaps in employee’s satisfaction towards the company. L&T KOMATSU Pvt Ltd aims to promote the peaceful industrial relations and good organization which is highlighted by management and the employees. Since employees are the backbone of the company they should be satisfied in order to improve the business in the higher competitive market of the liberalized economy. The employees’ across different levels of management are satisfied by their association with the organization, the leadership styles of the managers and supervisors, work culture ,the interpersonal relationships, welfare facilities and other factors that motivate employees to perform their responsibilities efficiently. But , however little dissatisfaction is there regarding the promotion policy, pay package, equal treatment at work place and the quality of tools provided. So the company should look into these matters and take corrective action as these are critical to the quality of work life. The company believes in employee’s satisfaction and effective productivity hours. Quality mission includes not only the quality of the products but also the Quality of Work Life.

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ANNEXURE

12. QUESTIONAIRE

I am Mahita doing my project here on the topic quality of work life.Please kindly spare your precious time to fill this questionnaire which would be of great help for my project.This information will be kept highly confidential and would be used only for academic purpose. Note - Please tick in the appropriate boxes1.Name-

2.Gender- male female

3.Age

20-30 31-40 41-50 51&above4. Experience 1-10yrs 10-20yrs 20-30yrs

5. Income level Rs5000-Rs10,000 Rs10,001-Rs15,000 Rs15,001-Rs20,000 above Rs20,000

6. Does your job enable you to use your skills and abilities in full? Strongly agree Agree Neutral Disagree Strongly disagree

7. Is there equal treatment at work place? Strongly agree Agree Neutral Disagree Strongly disagree

8. Does the conditions on your job allow you to be productive? Strongly agree Agree Neutral Disagree Strongly disagree

9. Are there oppourtunities to develop special abilities? Strongly agree Agree Neutral Disagree Strongly disagree

10. Does your organization provide enough guidance to get the job done? Strongly agree Agree Neutral Disagree Strongly disagree

11. Does your organization provide high quality tools to do the job? Strongly agree Agree Neutral Disagree Strongly disagree

12. Is there any opportunities for promotion in your company? Strongly agree Agree Neutral Disagree Strongly disagree

13. Do you feel the safety of workers is at high priority ? Strongly agree Agree Neutral Disagree Strongly disagree

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14. Are the Infrastructure facilities good? Strongly agree Agree Neutral Disagree Strongly disagree

15. Are you satisfied with the following facilitiesFacilities Yes NoFirst aidLightening Ventilation Drinking water

Hygienic conditions Spacious work placeToilets

16. Are you recognized in your company? Strongly agree Agree Neutral Disagree Strongly disagree

17. Are you satisfied with the compensation schemes adopted at L.T.K? Strongly agree Agree Neutral Disagree Strongly disagree

18. Is there security for your job? Strongly agree Agree Neutral Disagree Strongly disagree

19. Is there helping tendency of the supervisor? Strongly agree Agree Neutral Disagree Strongly disagree

20. Are there good relations with collegues? Strongly agree Agree Neutral Disagree Strongly disagree

21. Are there good relation with supervisor? Strongly agree Agree Neutral Disagree Strongly disagree

22. Are there training opportunities to improve the quality of work? Strongly agree Agree Neutral Disagree Strongly disagree

23. What is your opinion about work stress? Always Often Manageable Sometimes Never

24. Are you satisfied with your Strongly agree Agree Neutral Disagree Strongly disagree

25. Will your supervisors accept any of your suggestions? Strongly agree Agree Neutral Disagree Strongly disagree

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26. Is the transparency level satisfactory? Strongly agree Agree Neutral Disagree Strongly disagree

27. Do your family members feel associated with the company? Strongly agree Agree Neutral Disagree Strongly disagree

28. Is the balance between your work life and personal life good? Strongly agree Agree Neutral Disagree Strongly disagree

29. Do your family members take pride of you being a part of L.T.K? Strongly agree Agree Neutral Disagree Strongly disagree

30. Are you proud to be a part of L.T.K? Strongly agree Agree Neutral Disagree Strongly disagree

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13. BIBLIOGRAPHY

1. Books: 1. K. Aswathappa and Subbarao, “Human Resource Management” 2. S.P Jain, Narang, “Management Accounting”

2. Periodicals:1. L & T Bangalore Blooms – Annual Magazine Of L&T-Komatsu

2. Memorandum Of Settlement – L&T Komatsu Ltd,

3. Internet.

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Documents

study of the QWL at LTK