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A A R RE ESSE EA AR RC CH HR RE EP PO OR RT T O ON N ““ccoom mppaarraattiivvee ssttuuddyy ooff ppeerrssoonnaall ppoolliiccyy”” SUBMITTED IN PARTIAL FULFILLMENTOF THE REQUIREMENT OF THE DEGREE MASTER OF BUSINESS ADMINISTRATION

Dr. A.P.J Abdul Kalam Technical University, Lucknow

Submitted to

Submitted by

Mrs. Vibhuti Sharma

Richa Shrivastav Roll no. 1508570091 MBA 4th Sem.

S.D. COLLEGE OF MANAGEMENT STUDIES, MUZAFFARNAGAR

Preface

We can not achieve anything worthwhile in any field of knowledge solely on the basis of theoretical knowledge from books to order to achieve practical, positive and concrete results, the classroom learning needs to be effectively wedded to the reality of the situation outside the classroom.

Project work is conducted as an integral part of a management course. It provides an opportunity to apply the theoretical aspect in practical. It gives an excellent opportunity to a student to apply his ability, capability, interest, knowledge, brief reasoning and mantle by giving a solution to the assigned problem, which reflects his caliber.

Today, each and every organization wants efficient and effective work force. They want their employees to be sincere, involved in the work and attached to the organization that is why they want committed people. Therefore, there is need to study what exactly commitment means? How people view it? What are the variables related? So keeping in the mind above mentioned scenario, I decided to do a project on “HR Policies in Steel Industry”. Employees are the backbone of any organization. When they join an organization, they bring with them a set of needs, desires and past experience that combines to form job expectation. Job satisfaction expresses the amount of agreement between one’s emerging expectation and requirements that the job provides. So it is very necessary to know about the HR policies of the organization to achieve the job satisfaction level of the employees. Based on the findings I have compiled this report.

`

DECLARATION I Richa Shrivastav have prepared this project as an essential and obligatory part of the course curriculum of my M.B.A program. I have tried my best to make my project a success.

(Richa Shrivastav)

Index

Chapter 1 : Introduction

6-28

Significance of Study

29

Review of Literature

30-32

Conceptualization

33

Focus of the Study

34

Objectives of the Study

35

Chapter 2: Research Methodology

36-39

Industry profile

40-44

Profile of the Organisation

45-72

Research Design

73-74

Sample size and techniques

75

Data Collection

76

Data Analysis

77

Limitations of the Study

78

Chapter 3: Micro Analysis

79-92

Chapter 4: Macro Analysis

93-95

(Inferences & Interpretations)

Chapter 5: Suggestions and Recommendations

96-98

Bibliography

99

Appendixes

100-102

CHAPTER 1

INTRODUCTION

HR POLICIES

Policies are the very important aspect for any organization. It is a tool that helps an organization for better functioning. These involve managing the relationship between the top management as well as lower management. The goal of HR Policies is to ensure that the firm is able to continue its operations. And that it has sufficient to satisfy both maturing short-term debt and upcoming operational expenses.

Management should use a combination of policies and techniques for the management of HR policies. These policies aim at managing the work balance according to requirement. In HR Policies we can include the following. 

Recruitment



Selection



Induction



Training and development



Compensation system



Leave policy



Welfare policy

Recruitment:

Placing the right person at right place at right time is called Recruitment.

Recruitment policies a) Recruitment will normally be done against vacancies that occur due to the following reasons: i.

Separation- Resignation/ Termination/ Dismissal/ Retirement death

ii.

Expansion/ Reorganization of Company’s business / operations

b) Vacancies in all Departments will be filled after prior written approval of the Managing Director.

c) Prior written approval of the Managing Director will also be required even the vacancies are within the provision of the approved Manpower.

d) All vacancies to be filled from outside will be notified to the Employment Exchange.

e) Vacancies will be filled through Promotion/ up gradation/ relocation out of the existing employees.

Or

Employment Exchange

Or

Placement Agencies/ campus Interviews

Or

Advertisements

f) The following considerations will weigh in preparing shortlists of candidates in recruitment

Candidates within the Organization who could fill the vacancies on merits be considered on priority.

Active list of Applicants in the Company will be scrutinized.

should

Selection: To choose the right candidate from a pool of applications is called Selection. Selection policy adopted by the company The following weightage will be given in the final evaluation:-

Factors

Weightage

Qualifications

25%

Relevance of past experience

25%

Interview

50%

a. The selected candidates will be notified promptly. b. Candidates not selected will be sent regret letters. c. Candidates who were very poor will be informed regretting the company’s inability to find an opening appropriate to their capabilities. d. Candidates who were very good but not suitable for the position for which interviewed will be informed that the selection committee found them good but not suitable for the post for which they were considered and that their application is being kept on the active file and “will be in touch should a suitable opening exist in future.”

Appointment Letters

All candidates found suitable for appointment shall be issued Letters of Intent (Employment Offers).

Appointment Letters shall be issued under the signature of Authorities as under:-

CATEGORY

AUTHORIZED SIGNATORIES

Workmen

Factory Manager/ General Manager

Staff

Executive Director/ General Manager

Executives/ Manager

Managing Director/ Executive Director/General Manager

Officers

Executive Directors/ General manager

Following testimonials and documents must be on the candidate’s file before issuing the Appointment Letter: a. Medical Fitness Certificate from Company’s Doctor. b. Authentic proof indicating the Date of Birth (School Leaving Certificate). c. Copies of Certificates of Educational Qualifications. d. Copies of Certificates of experience from previous employers. e. Copy of relieving Certificate from the immediate past employer. f. Company’s Application Form duly filled in. g. Three passports sized colours photographs. h. Last ESI Membership No. wherever applicable. i. Last Provident Fund Account No. wherever applicable. j. Salary/ Income Tax Certificate from the last employer(s) along with PAN No.

k. Antecedent Verification from the Referees/ past Employers indicated by the candidate in his/ her Application Form.

Appointment Letters will be prepared on a standard format designed by the HR Department.

Documents and forms to be filled by the employee at the time of joining. a. Declaration/Nomination form under the Employee’s P.F AND Miscellaneous Provisions Act, 1952. b. Declaration Form under Employees State Insurance Scheme. c. Nomination form under Payment of Gratuity Act, 1972. d. Declaration of dependant family members for notification to Insurance Company

For coverage under Med- claim. Probation All employees are initially kept on probation for a period of six months, which may be extended for a further period of three months, at the sole discretion of the Management. Total period of probation shall, in no case, extend beyond one year.

Confirmation On receiving satisfactory reports on progress during probation period,HR Department will obtain necessary approvals and issue letter of confirmation to the probationer on expiry of probation period.

Compensation Policy: Objective:-

To provide a uniform, stable and reasonable competitive compensation to all the employees of the company.

Compensation- For Staff, Officers and Executives:Company policy; Compensation package for above category of employees comprises of Basic Salary and allowances.

Procedure For Staff and Officers, there is a well – defined guiding scale.

a. Computation of salaries/ wages for Workers/ staff & Officers Executives/ Managers is done by the HR Department b. Statutory obligations like taxes, provident Fund. ESI etc. and other deductions as permissible and payment thereof to the respective authorities is organized by Accounts Department. c. Annual revision of Basic salary for the all the employees will be undertaken as per performance Appraisal policy of the company. d. The company has made arrangement to open individual’s salary Account in ING VYSYA Bank where they have been given ATM Cards & their ATM counter is in Factory premises.

House Rent Allowance:All executives are entitled to House Rent Allowance at the rate of 50% of their basic salary Officers & Staff are paid House Rent Allowance at the rate of their basic salary.

Official Duty Conveyance:-

a. All the Executives/ Officers/ Staff using their own vehicle for official work take claim for reimbursement of conveyance expenses along with authorized official duty slip at the rates given below:

i) Scooter/ Motorcycle

@ 1.80 per kilometre

ii) Car

@ 4.20 per kilometre

b. Mode of calculation- Rate X No. Of kilometres= claimed amount c. Reimbursement of such Conveyance expenses should preferably be claimed once in a month along with Toll Tax & Parking Fee, if any.

Car maintenance:-

All company’s Cars are maintained and serviced at authorized service stations/ workshops in different cities at Company’s Cost.

It is the responsibility of the concerned Executive provided with Company Car to maintain it in good, working and road worthy condition.

Telephonic Policy:

To communicate with their employees at any time company provides the facility of the telephone. By providing this facility company also giving a good communication atmosphere.

Some Executives have been provided with Mobile Phones depending upon their assignment subject to monthly limits as per their respective Grade can claim (Mobile phone) bills within the entitlement as given below in proscribed format:-

G.M. and above

Rs. 1500/-

Sr. manager

Rs. 1000/-

Manager

Rs. 750/-

Officer

Rs. 500/-

Other Staff

Rs. 375/- or 325/- as application

Salary Advance :-

All employees are entitled @ 80% interest free salary advance and it can be recovered in 3-4 equal monthly installments from their salary/ wage.

Social Security Policy :Gratuity

The object of providing a gratuity scheme is to provide retirement benefit to employees who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. Gratuity as paid in lumpsum as per the Payment of Gratuity Act, 1971 and rules framed there under.Gratuity is payable to an employee on his separation from the services of the company, after he/ she has rendered continuous service for not less than five years:-

a. On his superannuation; or b. On his retirement or resignation; or c. On his death or disablement due to accident or disease (five years continuous service condition is not applied)

For the purpose of calculation of gratuity, the salary last drawn is taken into consideration.

Procedure:

a. Salary/ Wages X Total days payable under gratuity X 1/26. b. HR Department will calculate the Gratuity amount and inform to Accounts Department to release Gratuity payment. c. Gratuity must be paid within 30 days of the last working day of the separating employee subject to fulfillment of the requirements.

Provident Fund:-

All the employees are covered under the Provident Fund Scheme, framed under the Employees Provident Fund and miscellaneous Provisions Act, 1952, those who are getting salary/ wages (Basic + D.A.) up to Rs. 6500/- p.m.

Rate of Contribution:-

12% of salary/ wage from employee and 12% employer (8.33% pension account & 3.67% EPF account).

Attribution @ 0.5% & admin charges Pf @ 1.10%, EDLI admin charge 0.01% of the whole bill (Basic + DA).

Leave Policy: The Executive/ officers and Staff of the Company will be governed by the following

types

of leave

Earned Leave:-

a. All the Executives/ officers and Staff shall be eligible Earned Leave in accordance with the Factories Act. b. The unveiled EL standing to the credit of an employee as on 31st December each year may be carried forward and accumulated upon a maximum for 30 day in case of Executives and officers & Staff, beyond which it will encase.

Extra Ordinary Leave:-

The Company, at its own discretion, will grant extra-ordinary leave with or without pay for prolonged sickness, studies, or for other justified reasons to the employees subject to the condition that he/ she has exhausted all other leave to which he/she is entitled.

Sick Leave:-

a. Employees, who are in service of the company as on 1st January of the financial year; shall be credited with a SL of 7 days to be availed during the subsequent twelve months on account of sickness. b. SL for 3 days or more should be supported by a Medical / fitness Certificate from a Registered Medical Practitioner, who treated/ examined the employee. c. A leave application must be submitted immediately on falling sick with a medical Certificate, as it would not be entertained later without sufficient justification. d. SL in excess of the accumulation limit will lapse and will not be the subject matter of any compensation.

Casual Leave:-

An employee who is in service of the company as on 1st January will be eligible to avail of CL for casual purposes for nor more than 7 days in a financial year. CL will not be allowed more than 2 days at a time.

Short Leave:-

All the officers and staff are entitled to short leave of maximum two hours a day for personal work and subject to four hours in a month for which no salary is deducted.

Maternity Leave:-

Maternity Leave shall be as per Maternity Benefits Act, 1961 as amended from time to time.

Leave Roster The HR Department/ in-charge shall also ensure that too many Executives, Officers and Staff are not on leave at the same time in a particular month.

Leave Rules- Workers

a. Those workmen who have actually attended duty up to 240 working days in a calendar year will be allowed one day’s Earned leave fir every 20 days of work performed by them during the calendar year. b. The operating rules regarding granting of privilege Leave, wages for leave period etc. will be governed by the Holiday falling in between Earned Leave days shall not be counted as Leave days. c. Privilege Leave will be encased on retirement/ resignation/ termination of the following basis:-

Casual Leave:-

a. All workmen shall be entitled to seven days Casual Leave with wages, during one calendar year from 1st January to 31st December. b. The principal of earns and avails on pro rata basis shall apply. Casual Leave shall not be granted for more than two days at a time.

Transfer And Separation Transfer:

Services of all the employees are transferable. Employees may be transferred from one Department to another Department from one establishment to another establishment.

Transfers normally take place on account of following reasons: a. Vacancies arising out of separation of existing employee b. Organization Restructuring c. Reorganization of company’s business d. Closure of an establishment

Separation From Service:-

An employee may cease to be in the employment of the company for any of the reasons like Resignation, Termination, Retirement, Death, Dismissal etc.

Separation Procedure:-

After issuing a formal communication to the separating employee, HR Department / Company Secretary Will along with a copy of the said letter give following details to the Accounts Department

i.

Leave encashment amount payable of the separating employee

ii.

Salary/ Wages amount payable of the separating employee

iii. Any other recovery/ dues against separating employee iv.

Gratuity Application form from the separating employee

Settlement of Accounts:

On separation due to any of reasons mentioned above, employee’s final accounts will be settled only after he/ she has cleared his/ her dues with the company. Following are some of the critical formalities which must be complied within the period specified below:

1. Full and Final Settlement: (Salary + Encashment) 2. Payment of Gratuity: within 30 days of date of leaving.

Holidays:-

All the employees of the company are entitled to National and Festival Holidays, as per rules applicable in the October each year, Festival holidays are declared as per State/ Regional customers and traditions .While National Holidays are three in number and are observed on 26th January, 15 August and 2nd October each year.

Shifts:-

There are following types of shifts in the company:-

SHIFT

TIMING

CATEGORY

First Shift

8.00 am to 5.00 p.m.

Finishing

General

9.00am to 6.00 p.m.

All

Training and Development:Training & Development of employees is an essential activity for any organization to ensure its entrepreneurial superiority and excellence in its field.

Training & Development focuses on ensuring the timely availability of qualified and motivated employees with requisite skill sets to discharge their existing responsibilities, to take up higher responsibilities and to fill up the Competency gaps by continuously developing their skills and attitudes.

The company objectives on Training and Development are:

a. To bridge the skill and competency gaps b. To create and maintain excellence oriented work environment c. To develop employees skills so as to successfully meet the challenges of competition d. Retraining of employees to impart new skills required to fight obsolescence and to perform under changing business conditions.

Training Input:-

Training inputs are given as under:-

a. Training for existing employees based on needs and requirements b. Induction training for new entrants c. Training for re-designated/ transferred/ re-located/ promoted employees, keeping in view there new assignment, if required d. Attitude/ management development

Presentations:-

All the employees, other then workers, who have attended external training programme, have to give two presentations on the training programme attended by the employees.First presentation is held within ten days and second within the fifth day of the month of training.

Performance appraisal:Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions.

By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.

Objective:-

a. To provide a platform in which managers discuss the team member’s performance in their current role. b. Identify training/development needed in order to be effective in the current role. c. Discuss how the team member sees his role over the next one year.

360 Degree appraisal for executives:-

All the Executives of the company are appraised / assessed through 360 degree appraisal system.360 degree appraisal has been brought to practice very recently. Once 360 degree appraisal is implemented successfully, it will further be introduced down the line of officers and so on.

Procedure:-

(a) Company’s business goals for the year are finalized by the MD and are informed to all department head. (b) Managing director circulates the company’s business goals to all so that all executives may prepare their personal objectives.

(c) All executives are required to prepare the objective of their subordinates. (d) All the executives are required to fill up their self appraisal and ratings in the prescribed format provided by the HR department. (e) Self appraisal and self ratings are required to be submitted to the MD’s office. (f) Each executive assessed by seniors, peers and subordinate.

(g) All promotions, financial increases and other rewards are on based on 360 degree performance appraisal and achievements of agreed and finalized goals.

Format of Appraisal:-

Name of the employee

Design

Deptt:-

Reporting To

Position in organization chart

Joining date

TWO WAY COMMUNICATIONS: Two-way communication is a form of transmission in which both parties involved in transmitting of information. A communication is between Senior Employee and Junior Employee. IN PRIVATE SECTORS: In private organizations, two way communications are stringently followed by management and employees. All the formal and informal issues related

to

organisation

are

being

solved

immediately

on

receipt

of

the

complaints/messages/issues received from employee the manager initiates quick action in order to mitigate any further issues arising out of it and also it is being ensured that similar grievance or shortfall are not occurring through the process In case of informal issues0employee feel happy about their management in taking care of their matter. IN

GOVERNMENT

SECTORS:

In

government

organisations

two

way

communications is not followed properly by Senior and Juniors employee. They follow

procedure from establishment department to administration department then the issue goes to Senior Officer then appropriate person. In this communication it will take long time and it may also not reach the appropriate person. In case if communication with the aggrieved employee received the reply for the issues submitted earlier She/he might not be in position to correlate the matters submitted by him earlier. FEED BACK SYSTEM: Feedback system is a system where the performance of employees get evaluated and the evaluation of their performance is given by all the Peers, Superiors, and Junior Employees not only on the basis of employees performance but also behavior and discipline. IN PRIVATE SECTORS: In private organisations Feedback system is acute and the oraganisation follows the system stringently on regular basis viz., Weekly, Quarterly, Half yearly and Annually. The feedback is given top from management, Senior management, Peers, Junior employees as well Customers. This type of feedback system is also known as 360 Degree appraisal. Appraisal that is framed every one right from management to customers. In other sentence performance is internally and externally being evaluated. IN GOVERNMENT SECTORS: In government organisations are very poorly adopted. They hardly follow the feedback system. Here there is only grading system followed depending on length of the services by employees in government service will be criteria.

INTRODUCTION TO TECHNOLOGIES: Technology is the making, modification, usage, and knowledge of tools, machines, techniques, crafts, systems, and methods of organization, in order to solve a problem, improve a pre-existing solution to a problem, achieve a goal, handle an applied input/output relation or perform a specific function. Technology is audited or upgraded methodologies and practices which improves the work quality and culture for better output. IN PRIVATE SECTORS: In private oraganisations technology takes vital criteria for every employee technology is changing day to day basis to follow the practices and methods of technologies in order to achieve maximum production. Training & Development is conducted for employees on regularly to improve their work style, utilization of time without wastage. As well they abstract or extract new ideas from employees to initiate in working style. In other words management allows the employees to show their skills & ideas or management gives employees opportunities for their career development. IN GOVERNMENT SECTORS: In government organizations technology is poorly adopted. The employees are still working on past practices and methodologies which may be out dated at times. There is hardly separate wing of Training and Development and employees are very much lagging behind the technologies. In case if there is any emergency then immediate action of training takes place for appropriate designation as per policies of government.

Recruitment & Selection

Recruitment is the process of searching prospective employees and stimulating to apply for jobs in the organisation. Recruitment is the process to discover the sources of manpower to meet the requirements of the staffing the sources of manpower to meet the requirements of the staffing schedule and employ effective measures for attracting the manpower in adequate numbers to facilitate effective selection of an effective working force. Recruitment is the process of finding and attracting capable applicants for employment. The result is a pool of applicants from which new employees are selected Selection Once the potential applicants are identified, the next step is to evaluate their qualification, qualities, experiences, capabilities and make the selection. It is the process of offering jobs to the desired applicants. Selection means choosing a few from those who apply, It is picking up of applicants or candidates with requisite qualifications and qualities to fill jobs in the organization. IN PRIVATE SECTORS: Recruitment and Selection is carried out sequentially on the basis of merit candidates. Eligible candidates will get selected for the suitable designations. The process of Recruitment and Selection is of commonly 4-5 rounds. It depends on type of organization. Accordingly, First round will be an Aptitude round, Second round will be Online test, Third round will be Group discussion, Fourth round will be HR personnel round i,e personal interview with hr personnel.

Apart from these process organisations prefer reference candidates, the known candidates rather than unknown candidates. IN GOVERNMENT SECTORS: Recruitment and Selection is on the basis of entrance examination conducted by State Government or Central Government where candidate should get minimum marks to get pass out then their will be an interview call from the officials for the eligible candidates then after interviewing the best of them will get selected. Before applying for any employment HE/SHE must have registered their name in the office of employment exchange of the concerned city of domicile also valid registration. It is painful to note that for services in the government for an employment is on gratification which is a de-motivating factor to a highly qualified job seeker PACKAGES & PERKS: Packages & Perks are the amount or compensation given to employees of the organization for their performance in organisation depending on their designations and responsibilities. IN PRIVATE SECTORS: Packages & Perks, Now a day’s most of the organizations depends on the targets process. Organisations give value to work rather than time. As most of the organisation follows rule and regulations depending on policies of organisation and increments also depends on regular basis i,e Annually. Packages & Perks benefits also given according to individual performance such as bonus, incentives and any other perquisites as deemed fit. In the organizations, provident fund is also being applied where 12% from the salary of employee will get deducted and deposited with Provident Fund Organisation

along with the employer’s contribution at 12% to the PF Organization on the employee’s name and at the end of the services, i.e., on resignation, or at the time of termination or at the time of superannuation the amount accrued in the EPF account, within 40 days the amount, will be refunded and credited to the employee’s bank account. IN GOVERNMENT SECTORS: Packages & Perks are given on the basis of qualification, experience and designation. Government follow pay scale procedure thus salaries or compensations are credited periodically. Packages & Perks increments are followed regularly on the norms of government policies. Increment policies are usually made on the pay commission recommendations. Example: The present pay scale system of faculty members is as per 6th pay commission. Recently 6th pay commission has been upwardly awarded to 7th pay commission According to policies of government monthly provident fund is applied where 12% monthly salary of employee will get deducted and deposited with organisation and to the same monthly PF firm also deposit 1/3 of fund to particular employees and at the end of the services or after resigning within 40 days the amount will be refunded to the employee’s savings account.

ORGANISATIONAL ETIQUETTES; ETIQUETTES are the behavioral anticipation mutually accepted in an organization. Organisational etiquettes are the culture that is to be followed by every organisation. IN PRIVATE SECTORS: Organisational etiquettes play a crucial role in organisational main motive and is to maintain organisational behavior by following good etiquettes. To maintain the culture or positive attitude of employees as well organisation towards goals and success IN GOVERNMENT SECTORS: Organisational etiquettes in government organization is unfortunately missing totally, there are no set standard of etiquettes, organisational mannerism are poorly defeated and practiced. But at public sector under taking firms ethicate adhere to the minimal as per the quality standard maintained by management EMPLOYEE BENEFITS: EMPLOYEE BENEFITS are the perquisites where organizational management frame it through various polices and guidelines to enable the employees to avail the same the particular action is known as Gesture of Management at the same time it has no relevance with organisational laws. It may vary from time to time depends on productivity and profitability of organisation which leads to various employee welfare measures. IN PRIVATE SECTORS: EMPLOYEE BENEFITS are meticulously followed to develop Human Resource as well motivate employees such as, Travel Allowance, Education, Co- Rented House, Medical/ Accidental Insurances. IN GOVERNMENT SECTOR: EMPLOYEE BENEFITS in government organisations as such there are no policy of benefits followed because government sector follows policies and norms of Government of state or central.

LEAVE MANAGEMENT SYSTEM LEAVE MANAGEMENT is a system where platform ensures corporate HR to set up a fair & employee friendly leave policy and to craft a beautiful leave management module from its development unit. The flexibility of the leave module. The leave patterns analysis report helps HR to constantly evolve its leave policy aligning to employee and business needs. This allows the employee to enjoy leave privileges without disturbing productivity of work. It also ensures labour law compliances. Management module allows to define various leave types ranging from Earned/Privileged leave(PL), Casual leave (CL), Sick leave (SL), Compensatory off (comp offs)(OD), Maternity leave (ML), IN PRIVATE SECTORS: Every employee will get a annual leaves of 30 days and if more than 30 days taken then leave will get deducted from next year or it will go for Loss Of Pay and if leave are not avail then the amount of particular leave will be credited at end of the calender year to individual employee. Annual 5 sick leaves are given by the organization and if sick leaves go beyond 5days then it will cause Loss of Pay and there is no carry forward of leave for next year and not even any amount credited to these leaves. A part from these leaves there will be declaration of holidays annually 12days or 15 days depending on norms and policies of organisation. The process of leave management is before taking a leave SHE/HE should submit a leave application form and it should be approved by particular head of the department or managers. In case of Sick leaves as it is accidental one should inform.

IN GOVERNMENT SECTOR: Government employees comparatively get more leaves according to policies of government i,e 16 different kinds of leaves. Earned Leave: Earned Leave is ‘earned’ by duty. The credit for earn leave will awarded at a rate of 15 days on the 1st of January and 1st of July every year. Half Pay Leave: All Government servants are entitled to 20 days of HPL for every completed year of service. Half pay leave is calculated at 20 days for each completed year of service. Commuted Leave: This Leave is granted on medical certificate normally. Commuted leave not exceeding half the amount of half-pay leave due can be taken on medical certificate. Leave Not Due: This Leave is also granted on medical certificate normally. Leave not due is granted when there is no half-pay leave at credit and the employee requests for the grant of Leave Not Due. Maternity

leave

is

granted

to

women

government

employees. 1) Pregnancy: 180 days – Admissible only to employees with less than two surviving children. 2) Miscarriage/abortion (induced or otherwise): Total of 45 days in the entire service. Study Leave: Study leave may be granted to all government employees with not less than five years’ service Extra Ordinary Leave: Extraordinary leave is granted to a Government servant when no other leave is admissible or when other leave is admissible Casual Leave: In a calendar year eight days of casual leave is permissible.

Child Care Leave: Woman employees having minor children may be granted Child Care Leave by an authority competent to grant leave for a maximum period of 730 day Hospital Leave: Hospital leave is admissible to Group 'C' employees whose duties involve handling of dangerous machinery, explosive materials, poisonous drugs Vocational Department Staff Leave: departments where regular vacations are allowed during which those serving in them are permitted to be absent from duty)

Special Disability Leave: admissible to all employees when disabled by injury intentionally or accidentally inflicted Child Adoption Leave: Child adoption leave is granted to Female employees, with fewer than two surviving children on valid adoption of a child below the age of one year, for a period of 135 days Leave to Probationers: A person appointed to a post on probation is entitled to all kinds of leave admissible under the rules to a permanent servants ac Leave to Apprentices: Apprentices are admissible to leave on medical certificate, on leave salary equivalent to half pay for a period not exceeding one month in any year of apprenticeship A part from all these the list of holidays are declared by Government for all the employees of Government which may be 24 -23 days annually

JOB SECURITY: Job security is the probability that an individual will keep up his or her job; a job with a high level of job security is such that a person with the job would have a small chance of becoming unemployed. IN PRIVATE SECTORS: In private organisations job security is very poor and if knowingly or unknowingly any mistake occurs it directly reflects on job or at least on employee’s increment. IN GOVERNMENT SECTOR: Government organisations job securities are better enough if knowingly or unknowingly any mistake occurs employees get suspension from the services for given period of time. PENSION PLAN : Pension is a benefit. being extended to any employee in the Government irrespective of the status he/she held during the past Pension is a monetary benefit being an appreciation for the services rendered by an employee in the organisation. It has got a statutory support also PENSION PLAN is a regular payment made by the state to people of or above the official retirement age and to some widows and disabled people. IN PRIVATE SECTORS: In private firms as such there are no plans after retirement made. But in 1998 government introduces provident fund it may be after service or retirement. But it is not on regular basis. IN GOVERNMENT SECTOR: Pension plans provide financial security and stability during old age when people don't have a regular source of income. Retirement plan ensures that people live with pride and without compromising on

their standard of living during advancing years. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through Annuity Plan on Retirement.

According to United Nations Population Division World's life expectancy is expected to reach 75 years by 2050 from present level of 65 years. The better health and sanitation conditions in India have increased the life span. As a result number of post-retirement years increases. Thus, rising cost of living, inflation and life expectancy make retirement planning essential part of today's life. To provide social security to more citizens the Government of India has started the National Pension System

Significance of the study



HR policies are helpful in further studies in future.



HR policies are helpful in evaluating the functioning of the organization.



It helps in understanding the organization work culture, involvement and satisfaction.



It helps the organization in deciding the recruitment policy.



It takes better decisions regarding promotion and transfer.



It also decides the incentives and pay increment.



We can know about the employee’s involvement in the organization. .



We can decide which compensation package motivates the employees a lot.



We came to know whether employees are satisfied with the welfare policy.

Review of Literature Mallikarjunam K (2005)- The HR policies have assumed a new shape and nature in the form of a two-way communication link between the employees and the employers. Proper communication between the assessing authority and the employees under policies are essential for gathering all the required information from the employee. HR policies that are based on a free and unrestrained approach would generate the preferred data and help to increase organizational productivity.

Gupta Samita (2006), this article discuses the concept, goals and also explores several others aspects of human resource management. The literature focuses on the concept of effective HR policies in the organization. Researchers have argued in an article that HR represents twin dimensions of rationalization. The pursuits of reason in human affairs that is the process of bringing policies are pursued and rationalization as the increasing dominance of a meansend instrumental rationality.

Raju and Jena (2006), this literature provides the background and description of HR policies of ONGC. A good review system can help improve communication, while allowing people to increase their own effectiveness and clarify their own jobs and responsibilities. An innovative system will not only increase the performance of the staff, but also help them work together with common goals and fewer obstacles. The current system adopted by ONGC coupled with an aggressive communication campaign has resulted in the creation of a positive work culture with a successful implementation of the new appraisal system; ONGC is setting an example for others.

Gupta and Aggarwal (2007) study examined the relationship between managerial perception of the climate of participation and the perceived effectiveness of HR policies in a private

sector organization in North India. It was expected that the patterns of relationship between the variable under study would be positive in the organization. The result focused on the importance of climate of participation for increasing organizational commitment with the help of better HR among managerial personnel in Indian organization.

Geetika And Pandey Neeraj(2007), the paper deals with benchmarking, which involves a search for its genesis in the basis human instinct of comparison and judgmental reasoning, Three parameters of performance are identified, namely profitability, customer service and human resource satisfaction. Using these parameters, the power sector in India is studied.

Ravichandran K and DJE (2007), this article focuses on the means to improve the performance of the individual employee, which result in the overall improvement of the organization. Recently, organizations are being faced with challenges like never before. Increasing competition from business across the world has meant that all business must be much more careful about the choice of strategies to remain competitive. Organization have a better understanding of the importance of the human resource and so their focus on improving the process, the implementation skills of the appraisers as well as the appraises for successful HR, which means improving the performance of the individual employees which results in the overall improvement of the organization’s performance.

Joshi Rashmi (2008), this article focuses on various component- goal setting, regular reviews, annual appraisal, development process, linkage to reward system of HR policies. And consider issues for successfully implementation of HR policies with the help of current issues and best practices in HR like performance management as a strategies workforce tool, adopting year round performance management, alignment of goals with human resource aligning business objective with other areas, adopting performance management system software.

She stated well defined performance management system will enhance the image of the organization in the mind of employees while improving its performance in terms of productivity and profitability.

Kumar T kiran (2008) this article focused on the following aspects of performance management system:-need for HR policies, HR in company, setting up Human Resource, designing HR policies, setting up problem is human resource, use of technology in performance management.

Chkarborty Manishankar (2008) tee literature focuses on the human resource factor within an organization. Human resource manager across the globe are finding it very difficult to attract and retain talent, In such a scenario, the need for a proper HR policies has become all the more important.

Companies from knowledge sectors have devised novel HR policies, which are considered benchmarks by organization across sectors.

Conceptualization Conceptualization means to focus on the concept on which research is carried out by which we can clear the main things of report on which topic we are preparing report what is the main concept in this report because with the help of this conceptualization part we can go through the topic as well as the industry and company profile.

Focus of the Problem 

Main problem in review of HR policies is the lack of cooperation from the employees and the workers. They do not want to give their full contribution in the research.



It is very difficult to manage the manpower planning in the company. Most of the employees are not satisfied with the policies adopted by the company.



Due to frequent change in the govt. policies for workers and employees, it is very difficult to set the policies in the organization.

Objectives of the Study 

To know employer attitude towards the compensation system & welfare policy.



To know about the reputation of the firm.



To study about the major HR policies adopted by the managers of selected firms of steel industry.



To study how consistently the policies have implemented.

CHAPTER 2

RESEARCH METHODOLOGY

Research can be defined as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is, thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantages and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately. The researcher has to think about what procedure and techniques should be adopted in the study. He should arrive at the final choice by seeing that the methodology chosen for project is indeed the beast one, when compared with others

Research Process: ---- Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The sequence is as follows-

Define Research m

Review concept and theories

Formulate Hypothesis

Design research (sample size)

Collection of data

Analysis data

Feed back Interpret and report

Suggestion and recommendation

The term ‘Research Methodology’ indicates an exhaustive and searching investigating into some accepted principles and conclusions, so as to bring into light some new and novel facts .The first step towards any research is to identify the problem and look at it objectively. One problem to be studied is decided, the steps to be finalized as follows:-

 The Sample is to be surveyed as to get the reliable result.  Methods to be used for collecting required information.  Interpretation of data to get the required result through an analysis.  Provide the necessary recommendations and suggestions.

The methodology is based on the extensive experience in qualitative and quantitative interview methods with both workers and factory managers .The study solicits and examines HR policies and offers insight into the ethical and business perspective of the issue through a survey for its analysis .The study relied on trained interviews using a structured interview to gather a broad range of information regarding the HR policies prevailing in the organization .The study emphasizes on both engineers and senior engineers interviews conducted at JSL Plant employees . Interviews were conducted and the Questionnaires were filled between 20th June 2009 to 5th July 2009. All the Engineers were interviewed with convenience from the available list from the different departments. Onsite interviews were also conducted at random for further clear picture prevailing in the organization. The aggregate result of the interviews presents a Clear picture of the HR policies in the Organization.

Research Design

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with combine in procedure. The current study is exploratory cum descriptive in nature.

Exploratory Research Design:

The main purpose of such studies is that of formulating a problem for more precise is that of formulating a problem for more precise investigation or of developing the working hypotheses from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights.

Descriptive Research Design:

Descriptive research studies are those studies, which are concerned with describing the characteristics of a particular individual or of a group.

The research design is the arrangement of conditions for the collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. More explicitly, the design decisions happen to be in respect of:

What is the study about—How a team in an organization work, how team work to accomplish the objective of the organization?



Why is the study being made—“Team” being recognized as an important aspect of an organization, which contributes to the overall success of the organization?



Where will the study be carried out?



Where can the required data be found?



What period of time will the study include—the time taken for the entire process took around six weeks, which includes framing of the questionnaire, distribution of the questionnaires. Collection of it, then collection of the data and finally the interpretation of the data collected.

Sample size and techniques

Sample design:

A sample design is a definite plan for obtaining a sample from a given population.

Size of sample: This refers to the number of items to be selected from the universe to constitute a sample. In this study, the sample size is 50.

Sampling Procedure:

In sampling procedure the decision regarding technique to be used in selecting the items for the sample is taken. Here the technique used is convenient sampling & area sampling.

Data Collection

Data is of two types – Primary data & Secondary data. Primary data The primary data are those, which are collected afresh and for the first time and it is original and correct. Primary data are collected with the help of questionnaire & personal interviews and discussions. Out the various tools, the technique adopted here is one of the most practical and result oriented technique, popularly known as Questionnaire Technique. In a structured questionnaire, questions are definite, concrete and pre-ordained with additional questions limited to those that a necessary to clarify incomplete or inadequate answers for eliciting a more detailed response. In the questionnaire, the questions are presented with exactly the same wording and in same order to all respondents. The reason for standardization is to ensure that all the respondents reply to the same set of questions.

Secondary Data Secondary data is that data which someone else has already collected and which have already been passed through the statistical process. Here, secondary data is collected from journals, magazines, annual reports and publications.

Data Analysis:

After collecting the data it has to be processed and analyzed. The term analysis refers to the computation of certain measure along with searching for patterns of relationship that exist among data groups. This study involves percentage and appropriate analytical tools.

Data Interpretation:

Interpretation refers to the task of drawing inferences from the collected facts after at analytical study.

Limitations of the Study

A Few limitations and constraints came in

the way of conducting the present

study:

Due to lack of time with authority, we could not get full information about the HR policies in the company.



We can’t visit to many companies in such a short time.



Due to the lack of internet facility, we could not get the data of other companies.



Employees are not so much cooperative in giving the response of questionnaire.



Though no effort was spared to make the study more accurate.



Sample size selected may not be the true representative of the company, resulting in biased results.

This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.

CHAPTER 3

MICRO ANALYSIS

Identification of techniques of recruitment & selection and training & development

Question : According to you what is the most important factor for selection policy?

Qualification

Past experience

Interview

Response

30/50

13/50

7/50

percentage

60%

26%

14%

percentage 80% 60% 40% 20% 0%

Interview

Past experience

Qualificatio n

percentage

Interpretation:-According to most of the employees qualification is the most important factor in selection process.

Question : Which method is adopted by the company in training policy?

On the job training

Workshops

Seminars

Response

30/50

10/50

10/50

Percentage

60%

20%

20%

Percentage 80% 60% 40%

Percentage

20% 0% On the job Workshops Seminars training

Interpretation:-

Training is given during the job session.

Question : Which recruitment policy is adopted by the company?

Options

On-line

advertisement

Institutions

Response

15/50

20/50

15/50

Percentage

30%

40%

30%

Percentage 50% 40% 30% 20%

Percentage

10% 0% 1

2

3

Interpretation:-

The organization mainly gives preference to advertisement.

Employer attitude towards the compensation system & welfare policy

Question : Which type of compensation is given to you by the company?

Holiday package

Bonus

Others

Response

7/50

30/50

13/50

Percentage

14%

60%

26%

Percentage 80% 60% 40%

Percentage

20% 0% Holiday package

Bonus

Others

Interpretation:-

Here we can interpret that the company mostly use to give bonus to its employees as a part of the compensation.

Question : What type of changes you want in Welfare policy?

Options

Canteen

Insurance

Education

Response

13/50

21/50

16/50

Percentage

20%

45%

35%

Percentage 50% 40% 30% 20%

Percentage

10% 0% Canteen

Insurance Education

Interpretation:-

Most of the employees want insurance policy.

Reputation of the firm

Question : Which type of social security you want from the company?

Gratuity

Provident fund

ESI scheme

Response

27/50

10/50

13/50

Percentage

54%

20%

26%

Percentage 60% 50% 40% 30% 20% 10% 0%

Percentage

Gratuity

Provident fund

Interpretation:-

Gratuity is paid to the employees time to time.

ESI scheme

Question : Do you think your HR policies helps in building good relationship between top level and lower level management?

Yes

34/50

68%

No

5/50

10%

Cant say

11/50

22%

80% 70% 60% 50% 40% 30% 20% 10% 0%

Series1

Yes

No

Cant say

Interpretation:-

Yes, HR policies help in building good relationship between top level and lower level management.

Question : What are the major impacts of HR policies?

Options

Productivity

Reduce turnover

Good relationship

Response

20/50

15/50

15/50

Percentage

50%

25%

25%

Percentage 60% 50% 40% 30% 20% 10% 0% Good relationshi p

Reduce turnover

Productivit y

Percentage

Interpretation:-

HR policies have major impact on the productivity.

Knowledge of major HR policies

Question : Which appraisal system is adopted by the company?

MBO

360* Appraisal

Others

Response

13/50

24/50

13/50

Percentage

15%

70%

15%

Percentage 80% 60% 40%

Percentage

20% 0% MBO

360* Appraisal

Others

Interpretation:-

Here we can conclude that company mostly uses the 360* Appraisal technique for the performance appraisal of the employees.

Question : Are you satisfied with the leave policy of the company?

Yes

No

No comment

Response

23/50

20/50

7/50

Percentage

46%

40%

14%

Percentage 50% 40% 30% 20% 10% 0%

Percentage

yes

no

No comment

Interpretation:-

Most of the employees are not satisfied with the leave policy, they demand more leave.

Implementation of policies

Question : Are you satisfied with the policies adopted by the company?

Yes

34/50

68%

No

5/50

10%

Cant say

11/50

22%

80% 70% 60% 50% 40% 30% 20% 10% 0%

Series1

Yes

No

Cant say

Interpretation:- Here we can conclude that the most of the employees are satisfied with the policies of the company..

Question : Does Top level mgt. include your representative at the time of making HR policies?

Yes

No

No comment

Response

23/50

20/50

7/50

Percentage

46%

40%

14%

Percentage 50% 40% 30% 20% 10% 0%

Percentage

yes

no

No comment

Interpretation:-

Most of the employees say that their representatives are included in making HR policies.

Question : How frequently your organization change the policy?

Options

After govt. order

After 6 months

Annually

Response

13/50

15/50

22/50

Percentage

25%

30%

45%

Percentage 50% 40% 30% 20% 10% 0%

Percentage

After govt. order

After 6 months

Annually

Interpretation:-

The organisation mainly changes the policy annually.

CHAPTER 4

MACRO ANALYSIS

Inferences & Interpretations There are a lot of techniques of recruitment, selection , training & development. In Stainless Limited, there are three main factors for the selection process like Qualification, Past experience & Interview but the most important is qualification of the candidates. For providing in the company, three methods are applied – On the job training, Workshops & Seminars. Out of these, on the job training is preferred mostly. For the purpose of recruitment, out of Online way, Advertisement & through Institutions, the advertisement gets the highest response. Thus most of the recruitment is done through advertisements. As per as the employer attitude towards the compensation system & welfare policy is concerned, the company offers bonus the most to its employees as a part of compensation compared to holiday package & others. Thus through the analysis, it is clear that the employees want more & more insurance schemes than canteen & education facilities for the improvement in welfare policy. There are three main kinds of social securities provided to the employees. These includegratuity, provident fund & ESI scheme & out of these, the most demanded social security is gratuity by the employees. In the analysis that HR policies help in building good relationship between top level & lower level management, it is found that there is a good relationship between the two & these HR policies have helped a lot in increasing the productivity of the organization. Most of the employees are appraised through 360* appraisal system but some other techniques as well as MBO are also used sometimes. About 45% of the employees are

satisfied with the Leave Policy of the company & 40% are not satisfied & rest 15 % have no comments. Through the analysis, it is also known that around 70% of employees in the organization are satisfied with the HR policy of the company, around 10% are not satisfied while the rest have no comments on this. It is also found that at the time of making HR of policies in the organization, the top level management includes representatives of the employees only sometimes while they should be included at this time every time because they are also the part of the organization & may help in setting up the HR polices in the company. As far as the changes in the HR polices are concerned, the organization mainly changes its policies annually.

CHAPTER 5

CONCLUSION & RECOMMENDATIONS

Conclusion & Recommendations

After having analyzed the data, it was observed that practically there was recruitment and selection in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of recruitment and selection the following things should be taken care of:

1. The very concept of recruitment and selection should be standardized through the organization. Unless this is done, it is accepted, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. 3. Further, at the time of confirmation also, the recruitment and selection form should not lead to fault of any information. Instead, detailed l of the employee’s work must be done – which must incorporates both the work related as well as the other attributes that are important for org. 4. Time period for conducting the recruitment and selection should be revised, so that the the exercise becomes a continuous phenomenon. 5. Transparency into the system should be ensured through the discussion about the employee’s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.

6. Performance appraisal conducted must be fair and very clear to the employees. A well communicated or discussion sort of

performance appraisal should be

conducted. 7. Management must provide the opportunities for self-development of employees. They must feel proud working with the organization. 8. Promotions must be handled fairly and all employees must be informed about the openings within the organization. 9. Permute use of work incentives- profit sharing. 10. Creative and innovative-provide employee with opportunities to use their there skills. 11. Train people and help them recognizing suggestion opportunities and

making

suggestion. 12. It should be noted that the recruitment and selection form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common recruitment and selection form for every job position in the organization.

Bibliography 1. Kothari, C. R. (2007) “Research methodology” 3d edition, Wishwa Prakashan, New Age International (P) Ltd. Daryaganj, New Delhi, India. 2. http://www.google.co.in 3. Trochim, William M. K. (2007) “Research Methods” 2nd edition, Biztantra,Dreamtech Press, Daryaganj Press, New Delhi, India 4. Bhatia S.K. (2006) “New Compensation Management Changing Environment” 3rd edition, Tata McGraw Hill Publication, New Delhi, India.

Appendices

Questionnaire

Name:

Age:

Gender:

Marital Status:

Contact No:

Please answer the following questions; your responses will be kept confidential

Q1. Do you satisfied with the HR policies adopted by the organization?

1) Yes

2) No

3) Can’t say.

Q2.Which Recruitment Policy is adopted by the organization?

1) On-line

2) Advertisement

3) Institutions.

Q3.According to you what is the most important factor for Selection policy?

1) Qualifications

2) Past experience

3) Interview.

Q4.Which type of compensation is given by the organization?

1) Monetary

2) Non-Monetary.

Q5.Which type of appraisal system is adopted by the organization?

1) MBO

2) 360 Degree appraisal 3) Assessment centre.

Q6.Are you satisfied with the leave policy of organization?

1) Yes

2) No

3) No comment.

Q7.What confronts you wants in welfare policy?

1) Canteen

2) Insurance

3) Transportation.

Q8.Which type of social security you wants from organization?

1) Gratuity

2) Provident Fund

3) ESI Co.

Q9.Which method is adopted by organization in Training policy?

1) On-Job Training

2) Workshop

3) Seminars.

Q10.Do you think your HR policies helps in building good relationship?

1) Yes

2) No

3) Can’t say.

Q11.How frequently your organization change the policy?

1) After Govt. order

2) After 6 months

3) Annually.

Q12.What is the major good impact of good HR policies?

1) Productivity

2) Reduce turnover

3) Good relationship.

Q13.Does Top mgt. includes your representative at the time of making HR policies? 1) Yes

2) No

3) No comment

Q14.Any Suggestion for improving the existing HR policies in your organization?

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