At IVRCL we believe in the power of “resourceful humans”.

Our people are our primary source of competitive advantage and they help us to drive
our growth in a planned and efficient manner. We work towards developing a culture that
attracts people with multidimensional experiences and skills.

Our developers take great pride in building world-class projects such sense of pride
cultivates belongingness and affinity in our teams. As a result many of our developers
like to stay with the company for long periods of time improving our retention rates as
one of the highest in the industry.

We hire and train high end project resource (man power), as building a project
requires proper generalization, flexible design, Our training and team environment
ensure that they can think through all aspects of the problem being solved by building
flexible architectures.

Building projects for highly competitive environments require development teams that
can properly match that intensity. To ensure that people who join us have the right mix
of attitude, values and skill sets compatible with IVRCL’s culture, we follow a rigorous
hiring procedure.

Our selection procedures involve a thorough psychometric testing, and skill based
interviews, which reduce the subjectivity of the process. Using metrics and
measurements regularly, like cost per hire, source distribution, staffing efficiency
ratio etc. Helps us to maintain our quality of the selection process. Our parameters for
selection extend to both hiring from campus, as well as lateral hiring.

In addition to acquisition of talent, we also lay special emphasis on development of

talent through knowledge sharing activities, well-defined career path, and career
development plans. Apart from this – competitive pay, a well-outlined induction and
orientation program, immediate rewards and recognition, open channels of
communication, and a participative environment have led to our best resources
being with us for a period of 15 yrs and above.

IVRCL’s employees are responsible for its growth by leaps and bounds year after year.
Thus, talent management is an important and critical activity for us. We provide an
intellectually stimulating and meaningful work environment, ample opportunities to learn
and grow, and a sense of belongingness, which challenges, motivates and inspires each
IVRCL-it to achieve beyond potential.

HUMAN RESOURCE MANAGEMENT

Human resource management is the process which develops and manages the element
of an enterprise i.e., recruit; select, trained develop members of an organization, not
only management skills but also the attitudes and aspirations of people. Human
resource management is concerned with integration getting all the members of the
organization involved and working together with a sense of common purpose. HRM is
proactive rather than reactive, qualitative improvement of people who are considered the
most valuable assets of an organization.

HRD

“People” is the most important and valuable resource every organization or institution
has in the form of its employees. Dynamic people can build dynamic organizations.
Effective employees can contribute to the effectiveness of the organization. Competent
and motivated people can make things happen and enable an organization/ institution to
achieve its goals.

HUMAN RESOURCE MANAGEMENT

HRM can be explained from both the ‘rational choice’ and the ‘constituency-based’
perspective. There is a managerial logic in focusing attention on people’s skills and
intellectual assets to provide a major competitive advantage when technological
superiority, even once achieved, will quickly erode (Barney, 1991; Pfeffer, 1994, 1998a).
RECRUITMENT & SELECTION

A process of finding and attracting capable applicants for employment. The process
begins when new recruits are sought and ends when their applications are submitted.
The result is a pool of applications from which new employees are selected

Compensation

Compensation is the remuneration received by an employee in return for his/her

contribution to the organization. It is an organized practice that involves balancing the
work-employee relation by providing monetary and non-monetary benefits to employees.

Training

Training is also an organized procedure for increasing the knowledge and skills of
people for a specific purpose. It helps the trainees acquire new skills, technical
knowledge, and problem-solving ability etc. It also gives an awareness of the rules and
procedures to guide their behavior thereby improving the performance of employee on
present job and prepares them for taking up new assignments in future.

Performance Appraisal

Performance appraisal is a method of evaluating the behavior of employees in the work

spot including both quantitative and qualitative aspects of job performance. A process in
which employee’s strengths and weaknesses are identified to improve the performance
on the present and future jobs. Performance appraisal is a systematic review of
individual or a group’s performance on the job.
Pay Roll Section:

After employee placement/joining the recruitment section handovers the details of the
employees enclosed in a file to the payroll department. In IVRCL Pay Roll process starts
from 25th of every month. First part is attendance, which will be coming from last 26 th to
25th of the month. Salary is paid for 1st to 31st but attendance is calculated from 25th to
26th of the month. The Pay Roll department then looks after the following aspect of the
employees.

Statuary compliance

Statutory means "of or related to statutes," or what we normally call laws or regulations.
Compliance just means to comply with or adhere to. So statutory compliance means you
are following the laws on a given issue.

The term is most often used with organizations, who must follow lots of regulations.

When they forget or refuse to follow some of those regulations, they are out of statutory
compliance. A company that follows all the rules, is in statutory compliance.

HSEQ

HEALTH, SAFETY, ENVIRONMENT AND QUALITY (HSEQ)

Every job involves certain risks. In order to provide a safer and healthy atmosphere at work
place HSEQ is strengthened at all levels in IVRCL.

There is a possibility of occurrence of risk either from external and internal sources. External
sources hear referred to infrastructure and internal sources referred to Behavior of employees.
HSEQ is involved in regulation and controlling the risks involved in jobs

SCOPE OF THE STUDY

The study covers the various aspects of Human Resource Management which helps in
determining the performance appraisal system in the organization.

OBJECTIVE OF THE STUDY

The primary objective of the study is to evaluate the effectiveness of HR practices of

IVRCL. In the light of this primary objective the following sub-objectives are set.

 To review the historical aspects of IVRCL and its growth.

 To know the position of the Infrastructures industry as a whole in the world as well
as in INDIA.
 To identify the HR practices needs in IVRCL.
 To assess the purpose and uses of HR practices.

 To study and analyze the further steps taken after doing the HR practices for the
employees in IVRCL.

 To evaluate various techniques or operations followed in this regard.

 To understand whether the performance appraisal has any influence in promoting

and upgrading the employees.

 To know how mutuality it will increase and strengthen the relationship between
each employee and his superiors.

 To study and ensure that after doing appraisal for employees give a desired level
of performance by attaching rewards and punishment for variation in performance
levels.

 Provide information which help to counsel the subordinate.

 To know the evaluation system through which we can identify the performance
gap (if any). This gap is the shortfall that occurs when performance does not
meet the standards set by the organization as accept.
  To know the feedback system which is given to employee about the quality of his
or her performance? However, the information flow is not exclusively one way.
The appraisers also receive feedback from the employee about job problems, etc.

 Finally to know thoroughly the methodology of HR practices followed by the

company.
RESEARCH METHODOLOGY

Research is an art of scientific investigation. Research comprises defining and

redefining problems, formulating hypothesis or suggested solutions, collecting,
organizing and evaluating data, making deduction and reaching conclusions and at last
carefully testing the conclusion to determine whether they formulating hypothesis.

Methodology: The Study is about the Employee Training Need Analysis in an

Organization. It deals with the title of the study, need of the study, objectives & Scope of
study.

Title of the Study: The study is titled as “HR PRACTICES” at IVRCL Infrastructures &
Projects Limited, Hyderabad.

Data sources: QUESTIONNAIRE

Data is collected from primary and secondary sources.

Collection of the data is of primary importance the research process. Data which is
collected for the purpose of research helps in proper analysis which is helpful to conduct
research effectively. The data source, which is very important in the collection of data, is
primary data and secondary data.

Both primary and secondary data are taken into consideration for the study of training
need analysis.

Primary Data: This consists of original information gathered for specific purpose. The
normal procedure is to interview the people individually and/ or in a group, to get the
required data.
Secondary Data: This consists of the information that already exists somewhere, either
in some Annual Records or Magazines etc, having been collected for other purpose.
Here the researcher has both primary as well as secondary data.

Survey Approach:

The questionnaire was administered through direct contact with respondents.

1. Sample Size & Sampling Technique:

The study covers a sample of employees of IVRCL Infrastructures & Projects Ltd.
The Respondents were selected on a Sample Random basis from the following
categories of the employees,

a) Senior managers / Senior Engineers

b) Deputy Managers
c) Junior Officers / Junior Engineers
d) Assistants
Statistical Tool: Simple percentage

Sample Variety: Respondents are mostly selected from the Executives and Non
Executives so the Sample Size is limited to 50 due to availability and the busy schedule
of the employees.

Sampling Procedure: The sampling method used was Random Sampling. This
sampling Method was used because lack of time and lack of through knowledge about
the universe. The sampling unit selected mostly from Executives and non executives.
The sample size was fixed to 70 respondents; the sampling procedure is response from.

Statistical Tool: In this research various percentages were identified in the analysis and
these were presented pictorially by the way of pie charts and in order to have a better
quality.

Questionnaire Design: A structured questionnaire was designed consisting of close-

ended questions and the meeting the respondents personally to get their responses.
 Indian Infrastructure

India to become the second Largest Economy by 2050

Indian Economy

The best barometer of country’s economic standing is measured by its GDP. India, the
second most populated country of more than 1100 million has emerged as one of the
fastest growing economies. It is a republic with a federal structure and well-developed
independent judiciary with political consensus in reforms and stable democratic
environment .In 2008-09 India’s economy-GDP grew by 6.5% due to global recession. In
the previous four years, economy grew at 9%.The Indian economy is expected sustain a
growth rate of 8% for the next three years up to 2012. With the expected average annual
compounded growth rate of 8.5%, India's GDP is expected to be USD 1.4 trillion by
2017 and USD 2.8 trillion by 2027. Service sector contribute to 50% of India‘s GDP and
the Industry and agriculture sector 25% each.

The robust current growth in GDP has exposed the grave inadequacies in the country’s
infrastructure sectors. The strong population growth in India and its booming economy
are generating enormous pressures to modernize and expand India’s infrastructure. The
creation of world class infrastructure would require large investments in addressing the
deficit in quality and

quantity. More than USD 475 billion worth of investment is to flow into India’s
infrastructure by 2012. No country in the world other than India needs and can absorb
so many funds for the infrastructure sector. With the above investments India’s
infrastructure would be equal to the best in the world by 2017.

Infrastructure policy in India:

Major policy initiatives such as deregulation, viability gap funding ,India infrastructure
finance company, Committee on infrastructure ,rural infrastructure programme , National
urban renewal mission, public private partnerships, Launch of private sector
infrastructure funds have been implemented in infrastructure sector

• Road Policy in India

• Airports Policy in India

• Ports Policy in India

• Power Policy in India

• Oil, Gas and mining Policy

• Real Estate Policy in India

• Telecommunication Policy in India

 Infrastructure Potential in India:
Ports infrastructure in India:

India has a long coastline of 7,517 km. The existing 12 major ports control around 76 %
of the traffic. Due to globalization, India’s ports need to gear up to handle growing
volumes. A number of the existing ports have plans for expansion of capacities,
including addition of container terminals. The government has launched the National
Maritime Development Programme, to cover 276 port projects (including related
infrastructure) at an investment of about INR 600 billion by the year 2012. Also, States
are increasingly seeking private participation for the development of minor ports,
especially on the west ports.

Indian ports are projected to handle 875 million tons (MT) of cargo traffic by 2011-
12 as compared to 520MT in 2004-05.There will be an increase in container capacity at
17% CAGR. Cargo handling at all the ports is projected to grow at 19 per cent per
annum till 2012. Planned capacity addition of 545 mt at major ports and 345 mt at minor
ports. Port traffic is estimated to reach 1350 million tons by 2012 .Containerized cargo is
expected to grow at 18 per cent per annum till 2012. Projected Investment in major ports
$16 billion’s and minor ports $9billion during2007-12 .

Airports infrastructure in India:

Passenger and cargo traffic slated to grow at over 20% annually and set to cross 100
million passengers per annum by 2010 and set to cross cargo traffic of 3.3 million tons
by 2010.Mumbai and Delhi airports have already been handed over to private players.
Kolkata and Chennai airports will also be developed through JV route.

Railways Infrastructure in India:

Indian Railways is the largest rail network in Asia and world’s second largest under one
management. Indian Railways comprise over one hundred thousand track kilometers
and run about 11000 trains every day carrying about 13 million passengers and 1.25

million tons of freight every day. The scope for public private partnership is enormous in
railways, ranging from commercial exploitation of rail space to private investments in
railway infrastructure and rolling stocks. The Golden quadrilateral is proposed to be
strengthened to enable running of more long distance passenger trains and freight trains
at a higher speed. Programmed also envisages strengthening of rail connectivity to ports
and development of multimodal corridors to hinterland. Construction of 4 mega bridges
costing about US$ 750 million is also included in the programme. Construction of a new
Railway Line to Kashmir valley in most difficult terrain at a cost of US$ 1.5 Billion and
expansion of rail network in Mumbai area at a cost of US$900 million has also been
taken up. Freight traffic is growing at close to 10% and passenger traffic at close to 8%
annually. Railways have planned a dedicated rail freight corridor running along the
railways Golden Quadrilateral (GQ). The double-line freight corridor is expected to
evolve

Systematic and efficient freight movement mechanisms and ease congestion along the
existing GQ. It would leave the existing GQ free for passenger trains. The 9260 km
dedicated freight corridor to be built at a cost of Rs 60,000 crore (US$ 15 billion) is being
funded partially with a US$ 5 billion loan from Japan. The work is expected to be
completed within the next 5–7 years. The first phase of the project would include the
Delhi–Howrah and the Delhi–Mumbai routes.

Power Infrastructure in India:

Presently the installed capacity of electric power generation stations under utilities stood
at 130000MW and in the five year plan the generation capacity is planned to be
increased to 2,20,000 MW by 2012.There is a 13% peaking and 8% average shortage of
power annually. Central government has already taken steps to increase capacity by
building Ultra mega power projects (UMPPs).There is a plan to increase Nuclear power
capacity from 3900MW currently to 10000MWbyendof11thplan.

Telecom Infrastructure in India:

Even with the rapid growth of telecom sector in India, the rural penetration is still less
than 5%. At 500 minutes a month, India has the highest monthly 'minutes of usage'
(MOU) per subscriber in the Asia-Pacific region, the fastest growth in the number of
subscribers at CAGR of more than 50%, the fastest sale of a million mobile phones (in
one week), the world's cheapest mobile handset and the world's most affordable color
phone.

Highways and Roads infrastructure:

The Indian road network has emerged as the second largest road network in the world
with a total network of 3.3 million km comprising national highways (65,569 km.), State
highways (128,000 km.) and a wide network of district and rural roads. The US tops the
list with a road network of 6.4 million km. currently; China has a road network of over 1.8
million km only. Out of the 3.38 million Km’s of Indian road network, only 47% of the
roads are paved. Roads occupy a crucial position in the transportation matrix of India as
they carry nearly 65 per cent of freight and 85 per cent of passenger traffic. Over the
past decade several major projects for development of highways linking the major cities
have been planned – and work started on most of them. What is of significance is that
private sector involvement (BOT projects) has finally been found to be feasible in the
Indian context. This has led to an accelerated growth in this sector – which had long
been faced with financial constraints. This has also facilitated

improvement in the quality of the new highways and introduction of the latest concepts
for toll collection, signage’s etc. The process of development of the new highways is
expected to continue for many years to come.
Construction Infrastructure in India:

Construction accounts for nearly 7 per cent of Indian GDP and is the second biggest
contributor (to GDP) after agriculture. Construction is a capital-intensive activity. Broadly
the services of the sector can be classified into infrastructure development (54%),
industrial activities (36%), residential activities (5%) and commercial activities (5%). The
main entities in the construction sector are construction contractors, equipment
suppliers, material suppliers and solution providers. India’s construction equipment
sector is growing at a scorching pace of over 30 per cent annually--driven by huge
investments by both the Government and the private sector in infrastructure
development. It is estimated that there is USD860 billion worth of construction
opportunities in India
Whereas coming to the growth of infrastructure in India the growth has rapidly in
increasing stage it was observed from the following graphical representation.

INVESTMENT SCENARIO

 GCFI in infrastructure as percentage of GDP 4.6 % during the tenth plan

 If growth in GDP to be sustained GCFI in infrastructure must keep pace.

 Total estimated investment of USD 320-350 billion in infrastructure up to 2012

INVESTMENT OPPORTUNITES IN INDIA

 TRANSPORT:

 Roads ($ 48 bn.): BOT preferred mode; NHDP-40,000 kms

  Airports ($ 9 bn.): 4 Metro, 35 Non-metro airports

 Ports ($ 12 bn.): All new berths through BOT

 Railways ($ 12 billion): Container trains, DFC, Stations

 POWER Generation ($ 130 bn.): Transmission, Distribution

OTHER SECTORS

 Gas Pipelines: Cross Country, Intra-city pipelines

 Telecom

 Health and Education Infrastructure

 Urban Mass Transport

 Urban Water Supply, Solid Waste Management

WHAT ARE FOREIGN INVESTORS LOOKING FOR?

 Good projects

 Demand Potential

 Revenue Potential

 Stable Policy Environment/Political Commitment

 Optimal Risk Allocation Framework

 Overview of IVRCL

IVRCL Infrastructures and projects Ltd commenced operation in 1990 and established
itself as a premier EPCC & LSTK service provider with front end engineering
capabilities. Commencing operations with building construction as class-I construction
firm in 1987, IVRCL forayed into various social infrastructure sectors like water
management, roads and high way, bridges, power transmission lines with attendant
engineering capabilities and was graded as one of the developer companies by state
and central government.

“Over a period of time IVRCL has developed core competencies. IVRCL now have a
platform for any infrastructure to be built.” What can stop any company? People,
competency level, finance limit. IVRCL is not short of anything. It has tremendous
credibility. With bankers who are willing to support projects. IVRCL is now looking to
benchmark itself as an international company thanks to its involvement in projects in
abroad. The company is eyeing water projects, development of ports it is sourcing a
location in Andhra Pradesh ship building and fabrication of components for oilrigs.

By virtue of its presence in core sector activity, IVRCL has redefined the Quality of life in
its many facts. This has come through its commitments, care and concern for societal
issues and largely by way of experience, having built upon brick by brick in its track
record of a decade and a half.

IVRCL, is today, reckoned as a leader in Infrastructure building and development

providing one-stop turnkey solutions on a cost-effective basis. IVRCL has been rated as
“The Fastest Growing Construction Company”. Firmly entrenched in the core sector
activity of infrastructure leading to nation building, IVRCL stands out for its pioneering
work in providing complete water solutions including water transmission, treatment and
waste management. The company’s other infrastructure activity includes roads and
highways, bridges and transmission lines with attendant engineering capabilities.
This has come about through its commitment, care and concern for societal issues and
largely by the way of experience, having built upon brick in its track record of decade
and a half.

Little wonder, IVRCL is today, reckoned as a leader in infrastructure building and

development providing one-step turnkey solutions on a cost- effective basis.

Head office: - Hyderabad.

Administrative offices: - Chennai, Cochin, Bangalore, Pune, Kolkata, Jodhpur,

Raipur(Chhattisgarh), Ahmadabad, Margo(Goa), Delhi, Jaipur, Jharkhand, Punjab,
Bihar, Bilaspur(MP), Bhopal, Jind(Haryana), Jammu & Kashmir, Kotdwara(Uttaranchal).

Board of Directors:

 Mr. E. Sudhir Reddy, Chairman & Managing Director

 Mr. E. Sunil Reddy, Director
 Mr. R. Balarami Reddy, Executive Director – Finance & Group CFO.
 Mr. K. Ashok Reddy, Executive Director

Auditors: - IVRCL is having statutory auditors and internal auditors.

Statutory auditors:-

1. Chaturvedhi and partners.

2. Deloitte Haskins and sells.

Internal auditors:-

1. T.Vijay Kumar.
The company operating with 3424 employees in financial year 2006, in 2007 it increased
to 4836, in 2008 the employees are 5082, now the employees are approximately
6257(2009). IVRCL is the first company in the Indian infrastructure sector to offer
ESOPs to the employees. The company aims to provide stimulating and safe
professional opportunities for its people. Health insurance coverage, Medical
Reimbursement, LTA (leave travel), informal family get-togethers and other tangible and
intangible benefits, all make IVRCLs people motivate a lot

Direct and indirect subsidiaries of the company

IVRCL:-

1. IVRCL Strategic resources & services limited.

 Salem toll ways limited
 Kumarpalayam toll ways limited
 Jalandhar Amristar Toll ways limited
 IVRCL buildings products limited
2. Hindustan Dorr Oliver limited
 HDO technologies limited
3. IVRCL prime urban developers limited
 IVRCL Mega malls limited
 IVR Hotels and resorts limited
 IVR Vanaprastha private limited
 Absorption air con engineers private limited
 IVR PUDL resorts and clubs private limited
4. IVRCL water infrastructures limited

 Chennai water desalination limited

 First STP private limited
5. IVRCL PSC pipes private limited
6. IVR environmental
7. Projects private limited
8. Alkor petro limited
9. IVRCL steel construction and services limited
10. GEO IVRCL engineering limited
11. IVRCL steel construction & services limited
 12. IVRCL water infrastructure limited

13. IVRCL road toll holding limited

14. First STP private limited
15. Chennai water desalination limited

It has two Sister companies, namely:

 Hindustan Dorr-Oliver ltd.

 IVR Prime Urban Developers

Hindustan Dorr-Oliver ltd: -

Hindustan Dorr-Oliver (HDO) is a leading Indian engineering, procurement and

construction company. HDO is the ideal acquisition of IVRCL for designing,
manufacturing, supplying & installing equipment, systems & processes for liquid-solid
separation and pollution control in the following industries:

 Pulp and paper

 Chemicals, Food and pharmaceuticals
 Breweries and Distilleries
 Refineries and Petrochemicals
 Oil and Gas.
 Phosphatic Fertilizers
 Industrial and Municipal Waste Water.

Within this new arm, IVRCL is well within reach of positioning itself as a full-fledged
Knowledge Process Outsourcing Hub for engineering solutions.

IVR Prime Urban Developers Ltd: the aim of IVR prime is to create luxury-intensive
urban infrastructure. Implementation of new technologies, environment soundness and
superior combine make IVR Prime’s most development. Strongly entrenched with
proven domain knowledge, experience and credentials. The projects include:

Residential Hospitality

Hill Ridge springs Ella Compass

Villas at Hill Ridge Springs Mall at Hill Ridge Springs

MISSION

To become a leader

In infrastructure business

And provide total solutions

QUALITY POLICY

Commitment to customer satisfaction,

Quality awareness, desire for excellence and

Continual improvement is our motto.

TARGETS by 2010

100000cr-Turn Over

100000cr- Assets

10000cr- Market Capitalization

7500- Human Capital

IVRCL VISION

IVRCL will be the national leader in constructing projects, which make everybody like
mere comfortable, easy & safe. It provides projects, services and infrastructures of such
excellent value that customers will actively choose to do business them. To reach the
goals in providing value to customers and shareholders, they will continue to develop at
IVRCL culture, built on the strength of the multicultural key value is:

1. Co-operation
2. People development
3. Environmental Concern
4. Professionalism
5. Speed
Appreciation Certificates

QUALITY ASSURED COMPANY

ISO 9001: 2008

ENVIRONMENTAL MANAGEMENT SYSTEM

ISO 14001: 2004

SAFETY ASSURED COMPANY

OHSAS 18001: 2007
VRCL - Performance at a glance

(Rs. Millions)
Particulars 2008-09 2007-08 2006-07

Turnover 49,830.91 36,981.14 23,464.57

Profit before Tax 2,737.74 2,853.30 1,850.96

Profit after Tax 2,259.67 2,104.77 1,414.63

Equity Capital 267.01 266.98 259.32

Reserves & Surplus 17,838.74 15,792.80 12,957.88

Net Worth 18,105.75 16,059.78 13,217.20

Gross Block 6,623.50 4,175.96 2,593.35

Net Block 5,206.97 3,191.94 1,929.13

Book Value (Rs.) 135.62 120.31 101.94

EPS (Rs.) Basic 16.93 16.08 12.38

Dividend 70% 70% 50%

AWARDS & REWARDS.

♣ Maharashtra Krishna Valley Development Corporation: Won Best Contractor

Award for Mechanized Water Canal Projects.
♣ GEC Alsthom (I) Limited): Received Bonus for early completion of the HVDC Back-
to-Back Power Projects.
♣ Indian Institute of Bridge Engineers (IIBE): Won 1st Prize for Cable Stayed Bridge
at Chitrapuzha for Kochi Refineries Limited.
♣ Gujarat Water Infrastructures Limited: Received Award for Commissioning of
Water Pipeline ahead of Schedule.
♣ Tirumala Tirupathi Devasthanams, Tirupathi: received Award for completing the
Water Supply Project at Tirumala Hills, Tirupathi, in a record period of 75 days.
♣ Central Organization for Railway Electrification): Received Award from Indian
Railways for completing the Electric Loco-shed Project at Lalaguda, Secunderabad
ahead of schedule.
♣ Government of Maharashtra: Received Award for completing Earthquake
Rehabilitation Projects of 3200 houses & 125 Kms. roads in Latur & Killari Districts in
Maharashtra.
♣ Bharat Heavy Electricals Limited: Received Award from BHEL employees for the
early completion of Housing Colony of 1936 dwellings.
♣ Rajasthan Urban Infrastructure Development Project, Jodhpur: Won Best Safety
Performance Award conducted on National Safety Day.
♣ Winner of the Golden Peacock Award for Occupational Health and Safety –
2008.
♣ National safety Council of India: Received Safety Awards for Sipat Super Thermal
Station, NTPC ltd, Sipat, Chhattisgarh.
♣ Indian Oil Corporation: Received Appreciation letter for 2 Million Safe Man Hours
without any Accident at IOCL Refinery Township Project of Paradip, Orissa.

Major Client Names:

In Public Sector

 Oil and Natural Gas Corporation Limited

 Bharat Heavy Electrical Limited
 Nuclear Power Corporation of India Limited
 Bharat Petroleum Corporation Limited
 Indian Oil Corporation Limited
 National Thermal Power Corporation.
In Private Sector

 Birla Institute of Technology and Science (BITS)

 Brandix India Apparel City Private Limited
 DLF Akruti Info Parks (Pune) Limited
 Telco Construction Equipment Company Limited
 TATA Projects Limited
 Jindal Steel and Power Limited.
Future plans of IVRCL:

 Dredging
 Hydro Power Projects
 Oil & Gas Exploration
 Information Technology Enabled Services (ITES).
Suppliers:-

For the IVRCL Company the suppliers are

 Steel Authority of India Limited

 Lumino Industries Limited
 Jain Irrigation Systems Limited
 Lanco Industries Limited
 Pioneer Trans-Energy Limited
 Essar Steel Limited
 Medhaj Engineers Private Limited

 Welspun-Gujarat Stahl Rohren Limited

 GPT Industries Limited
 ABB Limited
IVRCL has taken insurance coverage for its projects from

 Bajaj Allianz General Insurance Company Limited,

  Future Generali,
 ICICI Lombard General Insurance Company Limited,
 Reliance General Insurance Company Limited,
 Royal Sundaram General Insurance Company Limited and
 United India Insurance Company Limited.
Competitors:-

For IVRCL the competitors are many, the competitors in the fields like Water Supply and
Environmental Projects, Transportation, Buildings and Industrial Structures, Power and
Transmission Projects in construction sector are as follows:

 L&T
 D L F Ltd
 Punj Lloyd L td
 Jaiprakash Associates Ltd
 Nagarjuna Constructions Ltd
HR-TOOLS

 Competency Mapping
 Enterprises Resource Planning
 Balanced Score Card
 Effective controls at all levels
 Training and Development Programme
HR- INITIATIVES

 Cultivate positive work culture

 Quality month
 Star of the month
 Executive presentation
 Quality circles
 House keeping
 Safety month
  Statutory maintenance
 Common cafeteria
CULTURAL INITIATIVES

 IVRCL Family Day

 Independence Day
 Republic Day
 Community Development Programmes
 Public Relations Programmes
 IVRCL News Letter (DHADKAN)
HR-DEVELOPMENT PLANS

 Training need analysis

 Training budget
 Training calendar
 Identification of external training agencies
 IVRCL Vision, Mission transmission, Teambuilding, Positive Attitude, Discipline
and safety

RETENTION PLANS

 Review Compensation Plans

 Empowerment
 Relocation to place of choice
 Involve in decision making
 Abroad programmes
 Create professionalism
 Hard furnishing loan
 Vehicle loan
 Marriage loan
 Education loan
  Club membership
 Recognition for good work
 Employee stock option
 Housing loan

HR-POLICIES

 Human Capital Planning

 Recruitment / Selection /Induction
 Training and Development
 Performance Appraisal
 Succession Planning
 Career Planning
 Job Rotation and Multi Skilling
 Job Enrichment
 HR Manual
 Induction Manual
 Safety Manual
 Exit Interviews
INTEGRATED PERFORMANCE MANAGEMENT SYSTEM

 Day to Day to Accountability

 Individual Goals
 Short term / long term goals
 Individual development plans
 Team targets
HR_SURVEYS
  Organizational culture
 HRD Climate
 Training Need Analysis
 Compensation Survey
 Employee Satisfaction

HR_SAFETY INITIATIVES

 Safety survey
 Safety Budget
 Safety Policy
 Safety Manual
 Awareness and Training on safety
 Safety Reviews and Safety Meetings
 Safety systems
 Safety audit
 Safety Banners
 On site emergency plan
 Zero accident schemes for sites
LEARNING CENTRE FOR HUMAN EXCELLENCE

 Establish Learning Centre

 Fresher Training
 Induction Training
 In-house Training
 External Training
4.1.1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human resource management is the process which develops and manages the
element of an enterprise i.e., recruit; select, trained develop members of an
organization, not only management skills but also the attitudes and aspirations of
people. Human resource management is concerned with integration getting all the
members of the organization involved and working together with a sense of common
purpose. HRM is proactive rather than reactive, qualitative improvement of people who
are considered the most valuable assets of an organization.

Today Human Resource occupies, more than ever, the center stage of all
economic activities. It is alarming time for all those organization that wish to be
successful in global markets to gear up and implement desired shift in their prevailing.

HRM is that branch of management that deals with managing one of the
resources of the organization-Human Resources.

The function of Human Resource management is to acquire train, develop and

retain the human resources of the organization.

Objectives of HRM:

 To ensure the effective utilization of human resources. The human resource will
efficiently utilize all other organizational resources.
 To establish and maintain an adequate organizational structure and a desirable
working relationship among all the members of an organization by dividing
organization tasks in to functions, accountability, authority for each job and its
relation with other jobs in the organization.
 To generate maximum development of human resource within the organization by
offering opportunities for the advancement to employees through training and
education, or by effecting transfers or by offering retraining facilities.
 To secure the integration of the individual group goals with those of the organization
in such a manner that the employees feel a sense of involvement, commitment and
loyalty towards it.
 To identify the basic idea is to work out the irreducible number of core employees
required to operate the system.

The Experts say on HRM Today

“Companies cannot promise their people lifetime employment. Global competition is too
fierce and economic cycles too frequent for any such guarantees. But they can promise
their people every chance for employability – skills that will make them more attractive if
they are forced to part ways.” – Jack Welch

“To manage people well, companies should … Elevate HR to a position of power and
primacy in the organization, and make sure HR people have the special qualities to help
managers build leaders and careers.” – Jack Welch

The Spirit of HRM

“Coming together is a beginning;

keeping together is progress;
Working together is success.”

-- Henry Ford.

HRM-SWOT-ANALYSIS
STRENGTHS

• Young, Dynamic and qualified team.

• Having varied back ground and versatile experience.

• No financial constrains for development activities.

• Management encourages professionalism activities and change.

• Excellent brand image.

• High emphasis on training and development.

• Working environment is quite congenial.

• Encourages creativity and team work

• Free to Participate in Decision Making.

• People are empowered.

WEAKNESSES

• No learning centre and library.

• Less focus on business orientation.
• Inadequate focus on business learning.
• Less focus on communication.
• Rationalization of compensation

OPPORTUNITIES

• Develop Talent and creativity.

• Create role models and change agents.

• Visualize people problems with human face.

 • To plan for employee retention policies and strategies.

• Standardize integrated performance management system.

• To improve communication.

• To inculcate positive work culture.

• To promote career planning and succession planning.

THREATS

• Difficult to source with core competencies.

• Erosion of existing talents.

• Less focus on mentor management.

• Inadequate focus on employee orientation.

4.1.2 INTRODUCTION TO HRD

“People” is the most important and valuable resource every organization or institution
has in the form of its employees. Dynamic people can build dynamic organizations.
Effective employees can contribute to the effectiveness of the organization. Competent
and motivated people can make things happen and enable an organization/ institution to
achieve its goals. Therefore organizations should continuously ensure that the
dynamism, competency, motivation and effectiveness of the employees remain at high
levels. Human resource development (HRD) is thus a continuous process to ensure the
development of the employee competencies, dynamism, and motivation in a systematic
and planned way.
Definition:

(a) To acquire capabilities (knowledge, perspectives, attitudes, values and skills)

required to perform various tasks or functions associated with their present or future
expected rolls;

(b) To develop their general enabling capabilities as individuals so that they are able to
discover and utilize their own inner potential for their own or organizational development
purposes; and

(c) To develop an organizational culture where superior-subordinate relationship,

teamwork and collaboration among different sub units are strong and contribute to the
professional well being, organizational health, dynamism, motivation and pride of the
employees.

HRD MECHANISMS/INSTRUMENTS/SUBSYSTEMS

To achieve the above objectives and to facilitate HRD the following

process mechanisms or sub systems are used:

1. Performance appraisal

2. Potential appraisal and development

3. Feedback and performance coaching

4. Career planning and development

5. Induction training

6. Training

7. Job rotation

8. Organizational development

9. Rewards

10. Quality circles

 11. Employee welfare and quality of work life (QWL)

All these process mechanisms are linked with the corporate plans, particularly
with human resource planning (Man power planning)

THE CONTRIBUTION OF THESE SUBSYSTEMS TO HRD GOALS

Each of these sub-systems or mechanisms or instruments contributes to the

achievement of overall HRD goals. Performance appraisal focuses primarily on helping
the individual to develop his/her present role capabilities and to assume more
responsibility for that role. Potential appraisal focuses primarily on identifying the
employee’s future likely roles within the organization. The training is the means of
developing the individual’s personal effectiveness or developing the individual’s ability to
perform his/her job role or future job roles. Training also can strengthen interpersonal
relationships (through training in communications, conflict resolution, problem solving,
transactional analysis, etc.) and increases team work and collaboration.

Personnel HRD
1. To maintain existing systems and 1. To improve the abilities of the
procedures. individuals.

2. Isolated function 2. Organization wide function.

3. Thrust areas: 3. Thrust areas:

• Salary & wages • Performance appraisal

• Promotion & transfers • Induction and training
• Disciplinary action • Job rotation & Career planning
• Industrial relations • Direct contact meetings
• Leave, LTC, etc. • Survey of organizational climate

4.1.3 STRATEGIC HUMAN RESOURCE MANAGEMENT

 The SHRM literature is rooted in ‘manpower’ (sic) planning, but it was the
work of influential management gurus (for example Ouchi, 1981; Peters & Waterman,
1982), affirming the importance of the effective management of people as a source of
competitive advantage, that encouraged academics to develop frameworks emphasizing
the strategic role of the HR function (for example Beer et al., 1985; Fombrunetal., 1984)
and attaching the prefix ‘strategic’ to the term ‘human resource management’. Interest
among academics and practitioners in linking the strategy concept to HRM can be
explained from both the ‘rational choice’ and the ‘constituency-based’ perspective. There
is a managerial logic in focusing attention on people’s skills and intellectual assets to
provide a major competitive advantage when technological superiority, even once
achieved, will quickly erode (Barney, 1991; Pfeffer, 1994, 1998a).
From a ‘constituency-based’ perspective, it is argued that HR academics and HR
practitioners have embraced SHRM as a means of securing greater respect for HRM as
a field of study and, in the case of HR managers, of appearing more ‘strategic’, thereby
enhancing their status within organizations (Bamberger & Meshoulam, 2000; Pfeffer &
Salancik, 1977; Powell & DiMaggio, 1991; Purcell & Ahlstrand, 1994; Whipp, 1999).

HUMAN RESOURCE SRATEGY

ENVIRONMENTAL BUSINESS STRATEGY

Environment as mediating variable for human resource management strategies ‘An

organization’s HRM policies and practices must fit with its strategy in its competitive
environment and with the immediate business conditions that it faces’. The concept of
integration has three aspects: the linking of HR policies and practices with the strategic
management process of the organization the internalization of the importance of HR on
the part of line managers the integration of the workforce into the organization to foster
commitment or an ‘identity of interest’ with the strategic goals

Firm’s
resources and
capabilities

Value Sustained
Strateg
Rarity Competitive
ies
Inimitability Advantage

Non-
substitutabilit

Develop

Barney argues that four characteristics of resources and capabilities – value, rarity,
inimitability and non-substitutability – are important in sustaining competitive advantage.
From this perspective, collective learning in the workplace on the part of managers and
non-managers, especially on how to coordinate workers’ diverse knowledge and skills
and integrate diverse information technology, is a strategic asset that rivals find difficult to
replicate. Some of great persons make a similar point when they emphasize the strategic
importance of managers identifying, ex ante, and marshalling ‘a set of complementary and
specialized resources and capabilities which are scarce, durable, not easily traded, and difficult
to imitate’ in order to enable the company to earn ‘economic rent’ (profits). From the above we
can summarize the relationship between resources and capabilities, strategies, and sustained
competitive advantage.
4.2 Description of the organization

INTRODUCTION TO ORGANIZATION CULTURE

 Organization culture has assumed considerable importance
nowadays because of its impact on employee performance and satisfaction.
Organization culture refers to a system of shared meaning held by members that
distinguishes the organization from other organizations. Organization culture has been
defined as philosophies, ideologies, values assumptions, beliefs, expectations, attitudes
and norms that knit the organization together and are shared by its employees.

Organization culture as an important determinant of organization success.

Every organization has its own even though they have been probably created
unconsciously, based on the values of the top management or the founders or core
people who build and/or direct that organization. Over time individuals attempt to
change the culture of their organizations to fit their own preferences or changing market
place conditions. This culture then influences the decision making process. It affects the
styles of management and what everyone determines as success.
 IVRCL – ORGANIZATION
CHART

Chairman & Managing

Director

Director-Finance & Group Director

CFO (Resources)

EVP – Sr. VP - Comp. Group Head – HR &

Admin
Finance Finance Secretary

Head -
Commercial
Deputy Director

Business Development & Strategies

Director
Technical

Chief Operating Committee

Delhi Regional COO - Water

Head

Pune Regional COO - Transportation

Head

Chennai Regional COO - Buildings

Head

Kolkata Regional COO - Power

Head

COO -
PMC
IMPORTANCE OF ORGANISATION CULTURE

Organizational culture is the key to organizational excellence. And the function

of leadership is creation and management of culture. Organization culture is an
important activity for managers and consultants because it affects strategic
development, productivity, and learning at all levels. Cultural assumptions can both
enable constrain what organizations are able to do.

Departments at IVRCL

 Human Resource Department.

 Electronic Data Processing.
 Finance Department.
 Accounts Department.
 Technical Department.
 Stores Department.
 Project & Monitoring & Contracts.
 Purchase Department.
 Secretarial & Legal.
 Business Development.
 Steel Division.
 Design Division.
 Water Division.
 Power Division.
 Buildings Division.
 Transportation Division.
Designations of employees:

 G0-CMD/Executive Director
 G1-Director/COO/Group Heads/Sr.VP
 G2-Vice President/GM/Company secretary/JGM/DGM
 G3-Sr.Assistant General Manager/Assistant General Manager
 G4-Sr.Manager/Manager
 G5-Deputy Manager/Assistant Manager
 G6-Senior Engineer/Senior Surveyor/Senior Officer
 G7-Engineer/Surveyor/Officer
 G8-Asst.Engr/Asst.Surveyor/Asst-Officer/Jr.Engr/Jr.Surveveyor/Jr.Officer
 G9-Sr.Supervisior/Supervisor/Foremen/Sr.Asst/Asst/Receptionist/
o Sr.Technician/Technician/Operator/Driver/Electrician/Fitter/Welder/

o Mechanic/Office Boy.

Cultural Dimensions:

Over the years a number of organizational cultures have been identified.

1). Mechanistic and Organic cultures:

The mechanistic organizational culture exhibits the values of bureaucracy and

feudalism. Organizational work is conceived as a system of narrow specialism and
people think of their careers mainly with in these specialism. Authority is thought of as
flowing down from the top of the organization down to the lower levels and
communication flows through prescribed channels.

2) Authoritarian and participative cultures:

In the authoritarian culture, power is concentrated on the leader and obedience to order
and discipline or stressed. Any disobedience is punished severely to set an example to
others. The basic assumption is that the leader knows what is good for the organization
and he or she always acts in its interests.

3) Subculture and dominant culture

Each department of an organization may have its own culture in which case there is
subculture. A dominant culture emerges when there is an integration of all the
departments into a unified whole.

4) Strong and weak culture

In an organization having strong culture, the core value are both intensely held and
widely shared by its members. Such employees develop strong loyalty to the
organization.

5) National culture vs organizational culture

Distinction is also made between national culture and organizational culture.

Organizational culture is influenced by the culture of the land, irrespective of the origin of
the company. Go to any company operating in India, Indian or foreign the local culture is
visible. The holidays declared, festivals celebrated, functions organized and other
culture activities reflect Indian ethos.

How employees learn culture:

Culture is transmitted to employees through number of means. The most effective

means are stories, rituals, symbols, language and principles
 4.3 MAN POWER PLANNING

OBJECTIVE:

Optimum utilization of existing Human Resources by periodically reviewing and filling the
vacancies generated due to acquisition of new projects, resignations retirements and
normal attrition.

PROCEDURE:

 Human Resources Development department shall do manpower planning

periodically in consultation with Regional, Divisional and Departmental Heads.
 They shall take into consideration the volume of operations, budget, short / long
range plans, availability of surplus manpower, etc., while preparing the man
power requirements.
 Manpower requirement shall be prepared in the format annexed along with job
description and job specification of each position and the same shall put up to
COC.

 They shall also discuss & justify the requirement in the Kick off meeting and get
the approval from the Chairman, COC.

 The approved Manpower Indent shall come back to HR department for arranging
the same.

 HR department will provide the Human Resources as per the schedule given in
the indent.
  The Project Incharge shall prepare Human Resources utilization and future
requirements details in monthly MIS report.

Group Head (HR&Admn) shall consider the following factors while preparing
manpower planning.
 Expansion and growth plans of the organization
 Surplus manpower
 Resignations
 Terminations
 Retirements
 Vacancies likely to arise due to promotions, transfers and job rotations
 Finally natural attrition.

LEAD TIME:

HR Department shall require lead-time as furnished hereunder to arrange the

manpower in case of new requirement.

Grade Lead Time

G1 to G5 45 days

G6 to G G9 30 days
 4.4 Acts Applicable to IVRCL

Contract Labour (Regulation & Abolition) Act, 1970

Definition:

A person is said to be employed as a contract labour, in or in connection with the work of

an establishment, when he/she is hired for such work by or through a contractor, with or
without the knowledge of the principal employer.

Scope and Coverage:

The Act extends to the whole of India. It applies to –

a) every establishment wherein 20 or more workmen are or were employed on any day
of the preceding 12 months as contract labour, and

b) Every contractor who employs or employed on any day of the preceding 12 months,
20 or workmen. The Act, however, does not apply to any establishment in which work
only of an intermittent or casual nature is performed. Intermittent means off and on not
continuous, alternating, recurrent, periodic, casual means irregular. Work performed in
an establishment shall not be deemed to be of an intermittent nature if it was performed
for more than 120 days in the preceding 12 months or it is of a seasonal character and
is performed for more than 60 days in a year.

Obligation of Employers/Contractors:

1) Registration of Establishments as per concerned State Rules.

2) A contractor should apply for license for employing contract labour to the Licensing
Officer in the prescribed forms such as location of the establishment, nature of process,
operation of work etc.

3) EPF/ESI/Bonus Acts are applicable as per respective Acts and Rules.

4) Registers, Returns and notices are to be maintained both by Principal Employers/ and
respective Contractors.

5) Factories, Minimum Wages Act, Payment of Wages Act are applicable to the contract
labour employed in a factory which is otherwise covered by the said Act(s).

6) When a principal employer engages contract labour for work for perennial nature then
the worker will become employee of the principal employer if he/she has worked for 240
days.

7) For any lapse on any provisions of labour Acts/Rules by the contractors, principal
employer is held responsible for such lapses.

Principal Employer

Contractor (IVRCL)

Sub – Contractor
SHOPS AND ESTABLISHMENTS ACT
This Act is a State Legislation and almost every State and Union Territory Government
have enacted as Shops and Establishment Act and has framed the rules for its
enforcement. (For details, kindly refer to your State Government’s Rules):

Objectives:

The main objective of the Shops and Establishment Act, is to regulate the working and
employment conditions of workers in the so called unorganized sector, i.e. shops and
establishments including commercial establishments which are not covered by the
Factories Act or Mines Act or any other Act regulating the employment conditions. This
Act generally provides for the working hours, rest intervals, overtime, holidays, leave,
termination of service,

maintenance of shops and establishment. And other rights and obligations of the
employers and employees.

Scope and Coverage:

The Act extends to the whole of the State and covers all establishments irrespective of
their size, turnover and persons employed. The Act generally applies to the following
types of establishment.

- A shop carrying on a retail or whole sale trade or rendering a service

- Offices of all types of organizations whether sole proprietor, partnership, private
company, public company, etc.
- A store-room, godown, warehouse, etc.
- Banks, Insurance Companies, Stock exchanges, share brokers and commission
agents and Money changers
- Journalistic and printing establishment with less than 10 employees
- Educational Institution.
- Factories and clerical Dept. of a factory not covered under Factories Act.
- Residential Hotels, Guest Houses, clubs, cinemas and other places of public
amusement or entertainments.
REGISTRATION:
Registration is compulsory. For details, you will have to refer your State Government’s
Rules and Procedures and Formats.

Health and Safety, Working Hours and Holidays, Employment of Staff, Registers and
Returns and Inspection – Details you can refer to your local Authority’s Rules.

Generally, regional Offices, who look after sales and Service, come under Shops and
Establishment Act. If your Service Section, exceeds 10 number of employees (Includes
all casual, contract and regular), then you have to register under Factories Act.

Factories Act, 1948

This is a very important Act that all HR Officials must know. Factories Act is applicable
not in Manufacturing, but also in Service Industries wherever Power is used: Hence HR
Professionals must know each wordings of this Act.

Objectives: To regulate working conditions in Factories and to ensure basic minimum

requirements for the safety, health and welfare of the factory workers.

Scope and Coverage: (Important sub-clauses)

Factory ; 2(m) of FA.

Manufacturing Process: 2(k) of FA. Worker: 2(l) of FA

Occupier: 2(n) of FA (Most of the cases, it will be MD or Chairman of the Organization)

All Notices will be issued for any lapse in implementation of Factories in the name of MD
or Chairman and hence HR Professionals must be very careful in maintaining the
Factories Rules and handling the Inspectors very diplomatically.

Registration/Renewal of Factories License: As per Time Schedule, kindly renew your

factories License well in advance without any penalty or Notice. The license is as per
the ratio of No. of workmen and Power installed in the premises. Refer the Table given
in your State Factories Rules.
Health, Safety and Welfare of workers:

The organization must stipulate all rules and guidelines given in the Rules pertaining to
Safety, Welfare and Health. For Safety Matters, one has to consult
Production/Maintenance Chief or Safety Engineer. Have meetings with them regularly.
For Health and Welfare, HR Professionals can draw a working Manual incorporating
respective State Rules.

Working Hours, Holidays and Overtime:

This is very important. One must satisfy the minimum basic requirements as stipulated
in State Factories Rules. All should be notified in Factory Premises.

Leave With wages: Earned Leave must be credited as per State Rules. More than the
law says, if you grant, that is the discretion of the Management, but, you must satisfy
minimum requirements.

Notice of Accidents, Dangerous Occurrences and Diseases:

This is also very important. Establishment must draw a procedure as per State Rules in
case of Accidents, etc. Strictly follow the procedures without any lapse. All must have
documentary evidences.

Notify the Rights and Duties of Employees as per Factories Rules.

RETURNS: File the returns as per state rules on time. Even nil return must be filed.
One must draw a chart and calendar for filing factories act returns to the state authorities
and keep it on table. For your state authorities, date of filing is very important rather
than the compilation of data in the returns.

RECORDS: Keep All Records as per Factories Rules. Even it may have NIL data, but
keep the Records and fill it regularly. For any lapse, seek time from your local
Inspectors and act accordingly. They will always oblige if you go and request in proper
way.

4.5 RECRUITMENT & SELECTION

Recruitment: According to Edwin B. Flippo, “Recruitment is the process of searching

the candidates for employment and stimulating them to apply for jobs in the
organization”. Recruitment is the activity that links the employers and the job seekers.

A few definitions of recruitment are:

♦ A process of finding and attracting capable applicants for employment. The
process begins when new recruits are sought and ends when their applications
are submitted. The result is a pool of applications from which new employees are
selected.

♦ It is the process to discover sources of manpower to meet the requirement of

staffing schedule and to employ effective measures for attracting that manpower
in adequate numbers to facilitate effective selection of an efficient working force.
♦ Recruitment of candidates is the function preceding the selection, which helps to
create a pool of prospective employees for the organization so that the
management can select the right candidate for the right job from this pool. The
main objective of the recruitment process is to expedite the selection process.
♦ Recruitment is a continuous process whereby the firm attempts to develop a pool
of qualified applicants for the future human resources needs even though specific
 vacancies do not exist. Usually, the recruitment process starts when a manger
initiates an employee requisition for a specific vacancy or an anticipated vacancy.

RECRUITMENT NEEDS ARE OF THREE TYPES

♦ PLANNED:
The needs arising from changes in organization and retirement policy.

♦ ANTICIPATED:

Anticipated needs are those movements in personnel, which an organization

can predict by studying trends in internal and external environment.

♦ UNEXPECTED:

Resignation, deaths, accidents, illness gives rise to unexpected needs.

Types of recruitment:

Recruitment

Internal Recruitment External Recruitment

1 .Internal Recruitment is when the business looks to fill the vacancy from within its
existing workforce.

2. External recruitment is when the business looks to fill the vacancy from any suitable
applicant outside the business.
 RECRUITMENT & SELECTION PROCEDURE

Kick of
meeting

Manpower Requisition

Review & Process

Initiation

Resume Sourcing Data Bank

Employee
Referrals
Resume Screening
Placement
Agencies
Short- Listing

Sending Call Letters Personal

:
Interview

Interview Process

Panel Interview
Compensation Fixation

Issue of Appointment
Letters
Open
JoiningPersonal
Formalities
File
 Payroll
Preparation

Employee Placement Employee Orientation

Recruitment Process

1.In Kick of the meeting we decide about the Project details like when the project to be
started and project to be ended and requirements of material for project,
cost to be incurred, determination of the organization’s ability to pay salaries and
benefits within a defined period. Then according to the needs of Man Power
Requirement in organization we start searching the candidates.

2. Then we Review and start initiation process.

3. We start resume sourcing through different sources like Data Bank, Employee

References, placement Agencies etc... ..

4. In the next step we start Resume screening where we see the details like
experience, qualification, age etc.

5. According to the candidates skills, abilities, knowledge in that particular field, and
needs of the organization we start Short Listing the candidates

6. We send Call Letters to the short listed candidates and ask them to attend the
Interview.

7. Then we fix the compensation.

8. When the candidate agrees all the norms we issue him Appointment Letter.

9. After issuing him/her appointment letter then we start maintaining Personal File of
the candidate.

10 Joining Formalities of the candidate are done (pay roll preparation).

11. At last Induction Program is conducted (employee orientation

RECRUITMENT AND SELECTION AT IVRCL

IVRCL recruitment and selection policy is to retain staff of the highest caliber appropriate
to job requirements and to organization standards of efficiency, competence,
professionalism and integrity. The recruitment and selection decision is of prime
importance as the vehicle for obtaining the best possible person-to-job fit, which will
when aggregated, contribute significantly towards the company’s effectiveness. It is also
becoming increasingly important, as the Company evolves and changes, that new
recruits show willingness to learn, and have the adaptability and ability to work as part of
a team. The Recruitment & Selection procedure should help managers to ensure that
these criteria are addressed.

The Company Recruitment and Selection Policy will:

• Be fair and consistent;

• Be non-discriminatory on the grounds of sex, race, age, religion or disability;
• Conform to statutory regulations and agreed best practices.

POLICY OBJECTIVES
1 To meet Manpower requirements of the Organization in terms of approved Manpower
Plan

2 To fulfill requirements of competent HR in terms of requisite capabilities, skills,

qualifications, aptitude, merit and suitability with a view to fulfill Organization's
objectives.

3 To attract, select and retain the best talent available keeping in view the changing
needs of the organization.

4 To ensure an objective and reliable systems of selection.

5 To ensure placement of right man at the right job at the right time.

6 To provide suitable induction points for intake and thereby achieve the desirable level
of qualification, skill and age mix as required to strengthen the Human Resource of
the Organization.

RESPONSIBILITY

Ultimate responsibility shall lie with Group Head (HR&Admn). All activities pertaining to
recruitment shall be coordinated by Corporate HR Department. However,
representatives of other departments as deemed necessary may also be associated at
various stages of recruitments and/or selection of candidates.

INDUCTION LEVELS

Recruitment for various positions in the organization shall be done cadre wise

a) Managerial Level: This level comprises of the grades from G0 to G7. The recruitment
for these cadres will be done at Corporate Office coordinated by both Corporate HR
and the concerned departments.
I. Senior Management Level : All designations from G0 to G3
II. Middle Management Level : All designations from G4 to G5
III. Junior Management Level : All designations from G6 to G7
b) Supervisory/Asst Level: This level comprises of Grades G8 to G9 in Permanent
category. This level also consists of Positions in Temporary Category. Recruitment for
this level may be done at Region/Site itself but final approval shall be obtained from
Group Head (HR).
c) Skilled/Semi skilled workers: This level shall comprise some designations in G9 and
Temporary category. Recruitment for this level may be done at Region/Site itself but
final approval shall be obtained from Group Head (HR).
d) Contract Workers: Site Head can engage employees on Contract through contractor
for a specified period based on requirements duly approved by the Regional Head
and Group Head (HR).

APPOINTING AUTHORITY:

Delegation of Authority to appoint will be as follows:

GRADE APPOINTING AUTHORITY

G0 to G4 Executive Director

G5 to G9 Group Head (HR & Admn)

MANPOWER REQUISITION

1. Each department to raise manpower requisition in terms of profile, skills, functions

and responsibilities as per Manpower Requisition Form.

2. Manpower requisition should be raised by department head. Site Head will forward
with his comments to Regional/Functional Head for authorization.

3. HR department will forward the same with its remarks to the Executive Director for
approval.
4. HR department will keep the requesting department informed about the status of
approval within a week from the date of the indent.

5. Approved, search for Manpower will commence, else HR department will send a note
to the indenting department explaining the reasons for rejection.

SOURCING OF RESUMES

On receipt of the approved manpower requisition appropriate method of sourcing the

candidate will be decided (Internal Transfer, Data bank, Consultants or Advertisement)

A. INTERNAL RESOURCE
The existing manpower will be reviewed to optimize the human resource utilization. If
any internal resource is identified the same will be discussed with the concerned HODs
for transferring the employee to the department which has requested the manpower.

i. HR department will issue the transfer order as per the Annexure II.
ii. HR department to update the personnel HR Information System.
Recruitment from external sources will be resorted to, if suitable candidates from internal
resources are not available.

B. SCANNING OF BIODATAS FROM DATA BANK

i. Based on the approved manpower requisition data bank will be scanned.

ii. Suitable profiles will be forwarded to the concerned department for short
listing.
C. RECRUITMENT THROUGH PORTALS

i. Based on the approved manpower requisition the job specification will be

posted on the Portal and Web Site of IVRCL.
ii. The response received on the Portal will be screened and will be given to the
concerned department for short listing of suitable CVs.
D. RELEASE OF ADVERTISEMENT

i. On receipt of the approved manpower requisition HR department to decide on

mode of procurement through releasing advertisement.
 ii. HR department will liaise with the ad agency regarding publication and
artwork.
iii. The Head (HR&Admn) will give formal approval of the artwork and selection of
media (paper) for advertisement.
iv. All responses to the advertisement will be scanned and sent to the concerned
for short listing.
E. SOURCING RESUMES THROUGH CONSULTANTS

i. Based on the approved manpower requisition the job specification will be

informed to few consultants for head hunting.
ii. The resumes referred by consultants will be screened and given to the
concerned department for short listing of suitable CVs.

SCHEDULING OF INTERVIEWS

1. Fixing the interview dates should be done in consultation with the concerned HODs,
Regional Head/Functional Head and Group Head (HR).

2. Time period required for interview from the date of dispatch would be 10 days.

3. All interview call letters (Annexure III) should be sent by the HR department two
weeks prior to the date of interview.

4. Those called for interview on phone or e-mail should be given at least 3 days time for
attending the interview

CONDUCTING INTERVIEWS

1. HR department will call the short listed candidates for interview.

2. HR department in association with the manpower –requesting department shall form

the Interview Panel which will conduct interviews.

3. Interview Panel should comprise of two or more members.

4. Mandatory requirement: One member from concerned department and one member
from HR department. Panel members shall comprise as per the table given below.

5. Candidate has to submit the duly filled up company‘s Standard Application Form

6. Members of the interview panel should evaluate the candidates by using the interview
evaluation sheet. Overall rating of the candidates should be Good to Excellent for
getting selected. Candidates rated as satisfactory may be considered for employment
based on need, which will be decided by the Corporate HR and those rated as Average
or poor will not be considered for employment.

7. In case of any conflict in opinion, Corporate HR will be referring to Group Head

(HR)/Executive Director

INTERVIEW PANEL MEMBERS

Category Preliminary Final

Corporate HR and Concerned HOD/Corporate
Trainees to Sr Executives
Concerned dept HR
Corporate HR and Concerned HOD/Group
Asst Mgr to Sr Magr
concerned dept/Site Head Head(HR)
Group Head(HR)/Executive
AGM and Above Concerned HOD/Corp HR
Director

REGRET LETTERS

1. Regret letter to be sent by HR department, to those candidates who were not selected
after the final interview.

2. Regret letters should be sent within 10 days of final interview.

FITMENT:

The designation and Salary will be fixed based on the competency matrix. Executive
Director’s approval shall be obtained for all positions for the salary package before
finally committing to the candidate.
REIMBURSEMENT OF TRAVEL EXPENSES FOR ATTENDING INTERVIEW:

Grade Eligibility of traveling fares

G1 to G3 To & fro Air / 2ndA/C train fare

G4 to G6 To & fro 2nd / 3rd class A/c train fare or A/c coach Volvo bus fare

G7 to G9 To & fro 2nd class sleeper or luxury bus fare

 In selected cases amount will be reimbursed on submission of tickets. The mode

of transport will be decided by the HR department based on the positions.

 No reimbursement of boarding & living expenses will be paid.

OFFER LETTER:

The selected candidate will be issued or sent an Offer Letter showing designation, date
of joining, location of joining and salary package after obtaining necessary approval from
the Appointing Authority. A copy of offer letter will be sent to the respective department
for information.

APPOINMENT LETTER:

After verification of original documents and other testimonials at the time of joining
appointment letter shall be issued to the candidate by the HR department which shall be
signed by the concerned Appointing Authority.

Joining Formalities:

OBJECTIVE:

This policy is to ensure that all joining formalities are completed when a new person
joins with the company.

VERFICATION OF CERTIFICATES:
1 HR Department shall verify the following original documents and collect the relevant
Photostat copies at the time of joining.

 Date of birth certificate

 Academic and Professional qualifications

 Experience and Service certificate

 Relieving certificate from previous employer

 Last pay slip

 PAN Number

 Salary details of the previous employment

 Minimum 4 No. Passport size photographs

2. All new entrants shall fill up the following documents at the time of joining.

 Joining report (Annexure IX)

 Membership forms of EPF, ESI, Gratuity and Superannuation Scheme.

 Nominations of GPAI, Group General Insurance and Mediclaim etc.,

 Personal declaration forms (Annexure X)

 Application form to open bank account

 Confidentiality Letter of Pledge for the cadres G3 and above

Induction Procedure

OBJECTIVES:

1. To make the new employee feel at ease with the workplace

2. To know about the formal and informal norms in the company

3. To know about the dos and don’ts in the company

 4. To know the flow of activities in each department, familiarize with the employees
and overall view of the organization.

INDUCTION PROCEDURE AT CORPORATE OFFICE

 From G5 and above grade employees will be welcomed by the Group Head
(HR&Admn)

 HR department will release a circular welcoming the new employee by giving a

brief introduction of him and the same is sent to all HODs, Directors and other
important Heads.

 Induction schedule is to be prepared and circulated to all the Departmental

Heads.

 HR representative shall accompany him to all Heads of Departments and guide

as per the schedule.

 The employees joining at other places but undergoing induction programme at

Corporate Office would be paid TA/DA as per the Travel Policy.

 As a part of Induction, HR will organize a power point presentation to him about

our Group, Company’s profile, policies and procedures of HR Department.

 The new employee will be introduced to his Head of the Department after
completion of the initial induction programme.

 The concerned Head of the Department shall explain the departmental

procedures and helping the employee to set his performance parameters and
targets etc.,
 4.6 Compensation

GENERAL MEANING OF COMPENSATION:-

Compensation is the remuneration received by an employee in return for his/her

contribution to the organization. It is an organized practice that involves balancing the
work-employee relation by providing monetary and non-monetary benefits to
employees.
Compensation is an integral part of human resource management which helps in
motivating the employees and improving organizational effectiveness.

IMPORTANCE OF COMPENSATION:-

Compensation and Reward system plays vital role in a business organization.

Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most
important factor, it is impossible to imagine a business process without Men. Every
factor contributes to the process of production/business. It expects return from the
business process such as rent is the return expected by the landlord, capitalist expects
interest and organizer i.e. entrepreneur expects profits. Similarly the labour expects
wages from the process. Labour plays vital role in bringing about the process of
production/business in motion. The other factors being human, has expectations,
emotions, ambitions and egos.

Labour therefore expects to have fair share in the business/production process.

Therefore a fair compensation system is a must for every business organization. The fair
compensation system will help in the following:

• An ideal compensation system will have positive impact on the efficiency and
results produced by employees. It will encourage the employees to perform better
and achieve the standards fixed.

• It will enhance the process of job evaluation. It will also help in setting up an ideal
job evaluation and the set standards would be more realistic and achievable.

• Such a system should be well defined and uniform. It will be apply to all the levels
of the organization as a general system.

• The system should be simple and flexible so that every employee would be able
to compute his own compensation receivable.

• It should be easy to implement, should not result in exploitation of workers.

• It will raise the morale, efficiency and cooperation among the workers. It, being
just and fair would provide satisfaction to the workers.

• Such system would help management in complying with the various labor acts.

• Such system should also solve disputes between the employee union and
management.
 • The system should follow the management principle of equal pay.

• It should motivate and encouragement those who perform better and should
provide opportunities for those who wish to excel.

• Sound Compensation/Reward System brings peace in the relationship of

employer and employees.

• It aims at creating a healthy competition among them and encourages employees

to work hard and efficiently.

• The system provides growth and advancement opportunities to the deserving

employees.

• The perfect compensation system provides platform for happy and satisfied
workforce. This minimizes the labour turnover. The organization enjoys the
stability.

• The organization is able to retain the best talent by providing them adequate
compensation thereby stopping them from switching over to another job.

• The business organization can think of expansion and growth if it has the support
of skillful, talented and happy workforce.

• The sound compensation system is hallmark of organization’s success and

prosperity. The success and stability of organization is measured with pay-
package it provides to its employees.

Components of compensation system

Compensation systems are designed keeping in minds the strategic goals and business
objectives. Compensation system is designed on the basis of certain factors after
analyzing the job work and responsibilities. Components of a compensation system are
as follows:
 Types of Compensation

• Direct Compensation

• Indirect Compensation

DIRECT COMPENSATION:-

Direct compensation refers to monetary benefits offered and provided to employees in

return of the services they provide to the organization. The monetary benefits include
basic salary, house rent allowance, conveyance, leave travel allowance, medical
reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a
regular interval at a definite time.

Compensation provided to employees can direct in the form of monetary

benefits and/or indirect in the form of non-monetary benefits known as perks, time off,
etc. Compensation does not include only salary but it is the sum total of all rewards and
allowances provided to the employees in return for their services. If the compensation
offered is effectively managed, it contributes to high organizational productivity.

House Rent Allowance

Organizations either provide accommodations to its employees who are from different
state or country or they provide house rent allowances to its employees. This is done to
provide them social security and motivate them to work.

Basic Salary

Salary is the amount received by the employee in lieu of the work done by him/her for a
certain period say a day, a week, a month, etc. It is the money an employee receives
from his/her employer by rendering his/her services.

Conveyance
Organizations provide for cab facilities to their employees. Few organizations also
provide vehicles and petrol allowances to their employees to motivate them.

Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The
employees are given allowances to visit any place they wish with their families. The
allowances are scaled as per the position of employee in the organization.
Medical Reimbursement
 Organizations also look after the health conditions of their employees. The
employees are provided with medi-claims for them and their family members. These
medi-claims include health-insurances and treatment bills reimbursements.
Bonus

Bonus is paid to the employees during festive seasons to motivate them and provide
them the social security. The bonus amount usually amounts to one month’s salary of
the employee.
Special Allowance

Special allowance such as overtime, mobile allowances, meals, commissions, travel

expenses, reduced interest loans; insurance, club memberships, etc are provided to
employees to provide them social security and motivate them which improve the
organizational productivity.

INDIRECT COMPENSATION:-

Indirect compensation refers to non-monetary benefits offered and provided to

employees in lieu of the services provided by them to the organization. They
include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance,
Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.
Leave Policy

It is the right of employee to get adequate number of leave while working with the
organization. The organizations provide for paid leaves such as, casual leaves,
medical leaves (sick leave), and maternity leaves, statutory pay, etc.

Overtime Policy
Employees should be provided with the adequate allowances and facilities during
their overtime, if they happened to do so, such as transport facilities, overtime pay,
etc.
Hospitalization

The employees should be provided allowances to get their regular check-ups, say at
an interval of one year. Even their dependents should be eligible for the medi-claims
that provide them emotional and social security.

Insurance
Organizations also provide for accidental insurance and life insurance for
employees. This gives them the emotional security and they feel themselves valued
in the organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for
holiday with their families. Some organizations arrange for a tour for the employees
of the organization. This is usually done to make the employees stress free.

Retirement Benefits

Organizations provide for pension plans and other benefits for their employees
which benefits them after they retire from the organization at the prescribed age.
Holiday Homes
Organizations provide for holiday homes and guest house for their
employees at different locations. These holiday homes are usually located in hill
station and other most wanted holiday spots. The organizations make sure that the
employees do not face any kind of difficulties during their stay in the guest house.

Need of Compensation Management:-

 A good compensation package is important to motivate the employees to

increase the organizational productivity.

 Unless compensation is provided no one will come and work for the
organization. Thus, compensation helps in running an organization effectively
and accomplishing its goals.

 Salary is just a part of the compensation system, the employees have other
psychological and self-actualization needs to fulfill. Thus, compensation
serves the purpose.

 The most competitive compensation will help the organization to attract and
sustain the best talent. The compensation package should be as per industry
standards.

Strategic compensation is determining and providing the compensation packages to

the employees that are aligned with the business goals and objectives. In today’s
competitive scenario organizations have to take special measures regarding
compensation of the employees so that the organizations retain the valuable
employees. The compensation systems have changed from traditional ones to
strategic compensation systems.

Compensation Management in the Company:

As there are nine grades in the company i.e., G1 to G9, the management
is providing three different types of pay packages and they are as follows:

Wage and salary components:

G1 to G5 employees receive

Basic salary

House rent allowances

Transportation

Food expenses

Children education

Washing expenses

Conveyance reimbursement

G6 to G8 employees receive

Basic salary

House rent allowances

Transportation

G9 employees receive

Basic salary
House rent allowances

Deductions:

There are two types of deductions that is

Statutory deductions

Non- Statutory deductions

Statutory Deductions:

Under statutory deduction

Employee Provident Fund

Employee State Insurance

Professional Tax Salary in Advance

Bank Loan

Other Deductions like Damages etc.

Salary in Advance:

In some cases salary is paid in advance to the employee’s whenever

there is a need or in some emergency like, for medical or any other requirements of
the employee. This amount is been deducted in installments from the employee’s
monthly salary.

Bank Loans:

If the employee have any bank loans the amount of monthly payment to the
bank is been deducted from the employee’s salary.
Damages:

If any damage of the Company property is done in the hands of the

employee the amount for the damage done is been deducted from the employee’s
salary. If the damage amount is high then the deductions is done in installment
process.

PETROL REIMBURSEMENT

It is covered for G1-G3

E.g.: G1 gets 125 liters

FOOD COUPONS

Employees from G1-G5 are issued food coupons.

EMPLOYEE STOCK OPTION PLAN

Management guides the employees regarding proceedings and offers at a discount.

Shares are being allotted upon the designation and grade.

TOUR AUTHORISATION

All the employees are reimbursed when they go out for office purpose. E.g. G1 is
eligible for Air

G2 is eligible for Air and first class A/C.

For all remaining employees will get according to their grade eligibility.

GROUP PERSONAL ACCIDENT POLICY

In case of death of an employee it is given to the dependents.

G1- 25lakhs
G2- 15lakhs

G3- 12akhs

G4- 10lakhs

G5- 8lakhs

G6- 7lakhs

G7- 6lakhs

G8- 5lakhs

G9- 3lakhs

LEAVE TRAVEL ASSISTACE

Every employee after completion of probation period is eligible for LTA. But, they can
avail after completion of 1year of service, they are eligible for one current basic pay.
LTA can avail only for two calendar years.

TRANSFER BENEFITS & ALLOWANCES:-

All the employees transferred from one location to other shall be eligible for following
benefits and allowance. Allowance for packing and transportation of household
goods, vehicle etc. The concerned employees shall be reimbursed expenses
incurred towards packing, insurance, loading / unloading, transportation of house
hold goods, vehicles etc. against the production of actual bills.

Medical Benefits:

All executives, who are not covered under the ESI scheme, are entitled to
reimbursement of medical expenses incurred for self, spouse, children and
dependent parents up to one month’s basic salary every financial year. Managers
 and above will be allowed to club their entitlement for LTA and reimbursement of
medical expenses and utilize the same flexibly for both the purposes.

Staff in S1 grade who are not covered under ESI scheme, are entitled to
reimbursement of medical expenses incurred for self, spouse, children and
dependent parents up to Rs. 2500/- per anum. Claim for reimbursement of medical
expenses can be made twice in a financial year i.e. in October and April – not later
than 15th of the month. However, the total amount that can be claimed in a financial
year on both occasions will not exceed the entitlement at (a) and (b) above. Claims
must be made in the prescribed form, supported by medical bills and cash memos
and submitted to Accounts Dept. The un-availed portion of entitlement of any year
can be carried forwarded to the following financial year. The entitlement for
reimbursement of medical expenses will be prorating to the employment during the
financial year. Therefore, if any employee leaves the employment during the
financial year the amount reimbursed in excess of the prorate entitlement will be
recovered from the full and final Settlement dues of the employee.

4.7 Training and Development

Every Organization needs the services of trained people for performance the activities in
a systematic way. Training is a collection of action, which enables the organization to
achieve its goals.”Training needs can be identified by deducting the existing skills from
the job requirements.”

Training dates back as far as humanity itself. In Pre-historic times, humanity

began training its offspring to live off the land. In slightly later times, still pre-historic, men
begin living in groups; what we call tribes. It was around this time that ‘organized
fighting’, amongst men became common; and ‘organized training’ made its first
appearance in the form of military training. Military training was of prime importance in
those days, and the fittest and the tribe’s best warriors chose the best of the tribe’s
children for military for military training.

In the mid 1940s World War-II, training was first adopted by large commercial
organizations in the west as part of their regular commercial activity. Thus western
companies created formal training functions in their organizational structure. Initially, the
training was limited to technical training. Nevertheless, as competition grew, commercial
organizations experienced a need for management training because of the complexities
involved in the management of large organizations.

In India, the industrialization process began only after independence in 1947. At

that time, it was the Government of India, which realized the needs for rapid
industrialization of the country as the most effective means of rapid economic
development. With the erection of huge complexes like SAIL, coal India and other large
public sectors undertakings training of Workers and managers became a top priority for
the Government. This took the form of large training centers initially begin set up in
these Public Sector Undertakings. Both technical and management training was a part
of the curriculum. In addition, Management institutes such as IIMs and technical training
institutes like the IIMs were set up to supplement the requirement and commercial
training institutions have, therefore, been in a position to adopt the most modern training
techniques and methodologies right from their inception and continue to do so into the
new millennium.

Meaning and Definition of Training:-

Training is the act of increasing the knowledge and skills of an employee for doing a
specified job. It can be viewed as a systematic planning process which has its
organizational purpose to impart and provide learning experience. This is done with a
view to bring about improvement in greater measure in meeting the goals and objectives
of the organizations.
 Training is also an organized procedure for increasing the knowledge and skills of
people for a specific purpose. It helps the trainees acquire new skills, technical
knowledge, and problem-solving ability etc. It also gives an awareness of the rules and
procedures to guide their behavior thereby improving the performance of employee on
present job and prepares them for taking up new assignments in future.

Definition of Training:-

“Training is the continuous, systematic development among all levels of employees of

that knowledge and those skills attitudes which contribute to their welfare and that of the
company.”

-Plenty, Cord M.C and Efferson

“The process of aiding employee to gain effectiveness in their present and future work.”

-Richard P.Calhoon

Broadly speaking training is the act of increasing knowledge and skill of an employee for
doing specified job. It involves active participation by the employees.

Need for Training

Training is required on account of the following reasons:

1. Job Requirements. Employees selected for a job might lack the qualifications
required to perform the job effectively. New and inexperienced employees require
detailed instruction for effective performance on-the-job. In some cases, the past
experience, attitudes and behavior patterns of experienced personnel might be
inappropriate to the new organization. Remedial training should be given to such
people to match the needs of the organization.
2. Technological changes. Technology is changing very fast. Now automation and
mechanization are being increasingly applied in offices and service sector. Increasing
use of fast changing techniques requires training into new technology. For instance,
staffs in public sector bank are being trained due to computerization of banking
operations. No organization can take advantage of latest technology without well-trained
personnel. New jobs require new skills. Thus, both new and old employees require
training.

3. Organizational viability. In order to survive and grow, an organization must

continually adapt itself to the changing environment. With increasing economic
liberalization and globalization in India, business firms are experiencing expansion,
growth and diversification. In order to face international competition, the firms must
upgrade their capabilities.

4. Internal Mobility. Training becomes necessary when an employee moves from one
job to another due to promotion and transfer. Employees chosen for higher level jobs
need to be trained before they are asked to perform the higher responsibilities. Training
is widely used to prepare employees for higher level jobs.

Importance of Training

A well-planned and well-executed training program can provide the following

advantages:

1. Higher Productivity. Training helps to improve the level of performance. Trained

employees perform better by using better method of work. Improvements in manpower
productivity in developed nations can be attributed in no small measure to their
educational and industrial training programs.
2. Better quality of work. In formal training, the best methods are standardized and
taught to employees. Uniformity of work methods and procedures helps to improve the
quality of product or service. Trained employees are less likely to make operational
mistakes.

3. Less Learning Period. A systematic training program helps to reduce the time and
cost involved in learning. Employees can more quickly reach the acceptable level of
performance. They need to waste their time and efforts in learning through trial and
error.

4. Cost Reduction. Trained employees make more economical use of materials and
machinery. Reduction is wastage and spoilage together with increase in productivity help
to minimize cost of operations per unit.

Maintenance cost is also reduced due to fewer machine breakdown and better handling
of equipments. Plant capacity can be put to the optimum use.

5. Low Accident Rate. Trained personnel adopt the right work methods and make use
of the prescribed safety devices. Therefore, the frequency of accidents is reduced.
Health and safety of employees can be improved.

6. Reduced Supervision. Well-trained employees tend to be self-reliant and motivated.

They need less guidance and control.

7. High Morale. Proper training can develop positive attitudes among employees. Job
satisfaction and morale are improved due to rise in the earnings and job security of
employees.

8. Personal Growth. Training enlarges the knowledge and skills of the participants.
Therefore, well-trained personnel can grow faster in their career. Training prevents
obsolescence of knowledge and skills. Trained employees are a more valuable asset to
any organization.

Benefits of Training to Employees

Training is useful to employees in the following ways:

(i) Self-confidence. Training helps to improve the self-confidence of an employee. It
enables him to approach and perform his job with enthusiasm.

(ii) Higher Earnings. Trained employees can perform better and thereby earn more.

(iii) Safety. Training helps an employee to use various safety devices. He can handle
the machines safely and becomes less prone to accidents.

(iv) Adaptability. Training enables an employee to adapt to changes in work procedures

and methods.

(v) Promotion. Through training, employee can develop himself and earn quick
promotions.

(vi) New Skills. Training develops new knowledge and skills among employees. The
new skills are a valuable asset of an employee and remain permanently with him.

Types of Training

Training is required for several purposes. Accordingly, training programs may be of the
following types:

1. Orientation Training. Induction or orientation training seeks to adjust newly

appointed employees to the work environment. Every new employee needs to be made
fully familiar with the job, his superiors and subordinates and with the rules and
regulations of the organization.

2. Job Training. It refers to the training provided with a view to increase the knowledge
and skills of an employee for improving performance on-the-job. Employees may be
taught the correct methods of handling equipment and machines used in a job.
3. Promotional Training. It involves training of existing employees to enable them to
perform higher level jobs. Employees with potential are selected and they are given
training before their promotion.

4. Refresher Training. When existing techniques become obsolete due to the

development of better techniques, employees have to be trained in the use of new
methods and techniques. Refresher or re-training programs are conducted to avoid
obsolescence of knowledge and skills.

5. Safety Training. Training provided to minimize accidents and damage to machinery

is known as safety training. It involves instruction in the use of safety devices and is
safety consciousness.

6. Remedial Training. Such training is arranged to overcome the shortcomings in the

behavior and performance of old employees. Some of the experienced employees might
have picked up appropriate methods and styles of working.

Identifying Training Needs

All training activities must be related to the specific needs of the organization and the
individual employees. A training program should be launched only after the training
needs are assessed clearly and specifically. The problem areas that can be resolved
through training should also be identified.

Training needs can be identified through the following types of analysis:

1. Organizational Analysis. It involves a study of the entire organization in terms of its
objectives, its resources, resource allocation and utilization, growth potential and its
environment. Organizational analysis consists of the following elements:

(a) Analysis of Objectives. The long-term and short-term objectives and their relative
priorities are analyzed. Specific goals and strategies for various departments and
sections should be stated as a means for achieving the overall organizational objectives.

(b) Resource Utilization Analysis. The allocation of human and physical resources
and their efficient utilization in meeting the operational targets are analyzed. In order to
examine in detail the inputs and outputs of the organization.

(c) Organization Climate Analysis. The prevailing climate of an organization reflects

the member’s attitudes. It also represents management’s attitude towards employee
development.

(d) Environmental Scanning. The economic, political, technological and socio-cultural

environment of the organization is examined.

2. Task or Role Analysis. It is a systematic and detailed analysis of jobs to identify job
contents, the knowledge, skills and aptitudes required and the work behavior. On the
part of the job holder, particular attention should be paid to the tasks to be performed.

3. Manpower Analysis. In this analysis, the persons to be trained and the changes
required in the knowledge, skills, and aptitudes of an employee are determined.
Moreover, this analysis should be integrated in a carefully designed and executed
program.

Training Methods

As a result of research in the field of training, a number of programmes are available.

Some of these are new methods, while others are improvements over the traditional
methods. The training programmes commonly used to train operative and supervisory
personnel are discussed below. These programs are classified into on the Job and the
off the job training programs

Training Methods

On-the job method Off- the-job method

- Job rotation - Vestibule training

- Coaching - Role playing
- Job instruction or - Lecture methods
- Training through - Conference or
step by step Discussion
- Committee - Programmed
Assignments Instruction

Training and Development IVRCL

START PERFORMANC
E APPRAISAL
FORMS
NEED IDENTIFICATION
SR.MANAGEME
NT STAFF
SUMMARIZE THE NEEDS
OBSERVATION
JOB
RELATED CLASSIFICATION / GROUPING THE NEEDS BEHAVIORAL

INTERNAL PREPARATION OF ANNUAL BUDGET& EXTERNAL

IN- APPROVAL
HOUSE
(MDP) (RS.20 LAKH FOR YEAR 2007-08)
 IDENTIFICATION OF TRAINING RESOURCES

PREPARATION OF TRAINING
CALENDAR
EXTERNAL
CONDUCT TRAINING PROGRAMMES
(TRAINING INSTITUTE
/ BODIES)
PROGRAMME
COLLECTION OF FEED BACK EFFECTIVENES
S

FACULTY
SUMMARIZE THE FEED BACK
/AGENCY
RATING
SHARING THE FEED BACK

FOLLOW UP ON PROGRAM
EFFECTIVENESS

REVIEW END

OBJECTIVE
 The objective of this policy is to help build a skilled, well-trained and professional
workforce; to strengthen organizational leadership; and to adopt leading-edge
management practices to encourage innovation and continuous improvements in
performance.

The expected results of this policy are that:

 new employees will share a common understanding of their role;

  managers at all levels have the necessary knowledge to effectively exercise their
delegated authorities;

 employees at all levels will acquire and maintain the knowledge, skills and
competencies related to their level and functions;

 measures are taken to strengthen organizational leadership and promote

innovation through the adoption of leading-edge management practices;

 IVRCL believes that training and development is a continuous process. There is

an expectation that staff will keep abreast of developments within their own area
of expertise, and all staff are encouraged to undertake development activities
throughout their working lives.

SCOPE
• These guidelines are applicable across the Organization and to all levels and
categories of the employees.
• Training and development can be defined as any activity designed to help
individuals become more effective at their work by improving, updating or refining
their knowledge and skills. It encompasses a range of activities including, for
example, involvement in various projects, attendance at training courses,
• conferences or seminars, visits to other institutions, work shadowing, formal
study, coaching and mentoring.

PROCESS
At IVRCL the learning programs are conducted according to the needs of employees,
as well as organization. The programs are conducted both internally and externally. The
number of programs conducted externally was 31 and internally were 33 during April 1st
2008 to Feb. 28th 2009. The employees trained internally were 1709 and externally were
119 during April 1st 2008 to Feb. 28th 2009 (Exhibit 3 & 4). Maximum amount was spent
in conducting external programs Rs.639368. These training programs nomination are
organized every month either in-house or externally according to the requirement and
needs of the employee in the organization. Various institutes organize these programs
for the growth and development of people as well as organization as a whole.
Management has allocated Rs.100 Lakh for Training for FY2008-09 and we have our
own facility for conducting In house training.

At IVRCL Training of Employees are done by to ways:

By training nomination, the employees who are required to be trained are nominated
and then sent to the training programs, either internal or external.

By appraisal method the head of each department identify the strengths and
weaknesses of their employees during the time of appraisal period.

Learning Center for Human Excellence is given at IVRCL, these are:

Establish learning center.

Fresher training.

Induction training.

In-house training.

External training.

Library facility.

Need Identification:

A training program should be established only when its need is felt in the organization in
order to solve operational problems. The need for Training and Development is initiated
and identified by the organization, for this performance appraisal forms are used as tool
for performance management. During the time of appraisal the head of each department
identify the strengths and weaknesses of their employees. This helps in knowing those
employee who are required to be trainee further in order to increase their motivation,
effectiveness towards his/her job. They also take into account senior management staffs
who appraise their subordinates’ competency level for a particular job.

Classification/ Grouping of Needs.

The training and development needs are consolidated & are sequenced and are
described as observable, measurable behavior involved in the performance of Task/Job.
It involves a systematic process of identifying specific tasks to be trained. While deciding
what to train, two guiding factors are used - - Effectiveness and Efficiency. The best
program within acceptable cost is met. Often it helps to select tasks for training dividing
them into two groups.

Job Related: The persons are trained according to the job demanded. This can be done
through on-job training organized internally.

Behavioral Related: The persona re trained according to the behavior required in an

organization and with outside world. This is also called as individual related behavior is
to be measured as effective or ineffective.

Identification of Training Resources.

The company receives broachers from different institutes regarding various training
programs which is about to be conducted in the following month or year.

The company conducts Management development programs (MDP) for training the
employees internally. These are filed according to the dates and months mentioned
there. The training resources both internal and external are identified and the training
inputs which are required with the training are shared.

Preparation of Annual Budget & Approval

An Estimation of the cost should be done properly and then it should be implemented.
Organizations must be able to plan and budget their resources. Preparation of
perspective plan for training is made to make a realistic budget. If the budget is not
correct for the first time still it is performed to give the training staff a goal to aim for.
If the resources to implement the best training strategy are not available or either ways
all the personnel involved in the project are brought in on the decision making process.
This includes both clients and training developers, this helps in making correction and
getting approval by the concerned.

Preparing Training Calendar

When the broachers are received these are arranged and prepared date wise and
month wise and are given to different department heads for their references. The
training calendars should be in requirement with both individual and organization. These
are prepared for a financial year from April to March.

Conducting Training Programs

The question arises where to conduct training and development programs the following
choices are:

• At the Job itself.

• On the site but not the job.
• Off site
The HOD of different departments looks at the training calendar and nominates the
employees of their department who are required to be trained and sponsor them with the
amount mentioned in broacher if done externally. Training done throughout side
agencies shall be in compliance with the organization outsourcing policy.

The training programs conducted should adapt cost effective means both in-house and
outside. It should not be affecting the work schedule of the organization.

Issue Training Feedback Forms

After the employees come back from training program they are issued the feed back
forms and are asked for their feedback asking how they felt about the program, how is it
beneficial to them, their views and suggestions? They are required to fill the forms
honestly and carefully.

Collection of Feedback
The feedback is collected to know the program effectiveness and faculty /agency rating.
This is done so that in future the same agency / faculty is approached further for training
of other employees.

Summarize and Sharing the Feedback

After the feedback is collected it is summarized and shared with the

HoDs/Divisions/regions and top management on regular basis.

Follow up on Program Effectiveness.

A proper follow up on the effectiveness of the training program is conducted with

HoDs/Divisions/regions. It helps in determining the results of training and development
program. The main objective is to determine the accomplishment with the training
objectives, changes in training capabilities, cost effectiveness, explaining program,
failure and knowing the creditability of training.

1. Over a period of time, HR Department shall ensure to develop internal

capabilities to meet the training requirement of the Organization.
2. The Head of the Departments, can, if they feel that a particular workshop,
seminar or training program, other than planned in the Annual Training Calendar,
is useful to a particular employee, they can depute the employees or category of
employees to such a program, with prior approval from the Management.
3. HR Department after careful analysis, obtain approval from the Executive Director
and coordinate with the employees nominated for the program.
4. HR Department shall work out budget as per the Annual Training Calendar and
obtain approval from the Executive Director, before implementing the Plan.

5. HR Department shall maintain record of trainings, employee wise, location wise,

category wise, faculty wise, skill wise etc., for analysis.
6. Training needs from the Organizational perception shall also be considered while
preparing the Annual Training Calendar.
 4.8 Performance Appraisal

EMPLOYEE APPRAISAL:

After the employee has been selected, placed and inducted, he / she must be appraised
next. Performance appraisal is the act of increasing knowledge and skill of a employee
for doing a certain job. Individual should develop and progress simultaneously for their
survival and attainment of mutual goals. Performance appraisal is the organized
procedure by which people acquire knowledge or skill for a definite purpose .No
company has a choice of whether to rate appraisal or not, but the only choice is the
method of performance. At present performance appraisal of employees is necessary
because many jobs have assumed a highly technological character and under
automation we require highly skilled operatives.
The performance can be defined as

DEFINITIONS:

“It is the systematic evaluation of the individual with respect to his or her
performance on the job and his or her potential for development.”

Performance appraisal is a method of evaluating the behavior of employees in the work

spot including both quantitative and qualitative aspects of job performance. A process in
which employee’s strengths and weaknesses are identified to improve the performance
on the present and future jobs. Performance appraisal is a systematic review of
individual or a group’s performance on the job.

PERFORMANCE APPRAISAL PROCESS

 Objectives of P.A

Establish job
expectations

Design appraisal
programme programme

Appraise performance

Performance interview

Use appraisal data for

appropriate

Purposes
PURPOSE:

A better performance appraisal system should also focus on the individual and his
development, so as to make him achieve the desired performance. The developmental
focus of appraisal in rather new and have come as a result of research in behavioral
sciences. It suggests that while results are important the organizations should also
examine and prepare their human resources to achieve the results. Performance
appraisal has direct linkage with such personnel systems as selection, training, mobility
etc., Appraisal and selection have a lot to do with the criteria or job expectation .Well-
developed job descriptions can be extremely useful in not only selecting people but also
evaluating them on the same criteria.
OBJECTIVES OF APPRAISAL:

To understand the nature of appraisal it might be useful to look at its objectives. Almost
all organizations practice performance appraisal in one form or the other to achieve or
more objectives. These objectives may vary from organization to organization and also
in the same organization from time to time.

He concluded on the following two objectives of appraisal.

1. Performance appraisal was considered a development technique in the hands of

managers aimed at calling attention to a subordinate’s behavior flaws in order to
improve his administrative ability.

2. Performance appraisal was viewed as a necessary vehicle for assessing

management potential.

PROCESS OF PERFORMANCE APPRAISAL:

There certain stages while evaluating the performance of an individual mostly they
consider factors relating to the job and their behavior in the organization.

The following stages in the process of performance appraisal system:

STEP 1: CREATING AND SETTING UP PERFORMANCE STANDARDS:

This should be done for every employee at each level in every department, accordance
with the organizational goals. These standards should be clear and objective, capable of
being understood and measured.

STEP 2: MUTUALLY SET IDENTIFIABLE AND MEASUREABLE GOALS:

Setting mutually the identifiable and measurable goals communicate with the employees
to discuss with them how best the goals can be set in an identifiable measurable
manner. Seek information about their expectations regarding the performance standards

STEP 3: MEASURING PRESENT LEVEL OF PERFORMANCE:

The present level of performance in assessed by collecting information relating to it from

managers and personal observation by oral or written reports.

STEP 4: COMPARING AND APPRAISING THE PRESENT LEVEL OF

PERFORMANCE:

The focus here is to note the deviations in the actual performance from the set
standards.

STEP 5: DISCUSSING THE APPRAISAL WITH THE EMPLOYEES:

To ensure that the appraisal is transparent and free from bias or subjectivity, discuss
with the concerned employees. The employees may raise his /her objections in case the
appraisal is far from reality. Free exchange of such information reduces not only the
scope for subjectivity errors in the process of appraisal but also may strengthen the
morale and self-esteem of the employees. When the appraisal is positively or negatively
particularly, where the appraisal is negative, the employee is to be handled with a lot of
care so that he does not get disillusioned.

STEP 6: IDENTIFY AND INITIATE THE CORRECTIVE ACTION:

Identify and initiate the corrective action where necessary suitable corrective action may
be identified and initiated immediately. At times, this may yield only temporary results
.Immediate corrective action is often described as ‘putting out fire ‘. Most often, this may
not be the solution. It is necessary to identify the source of deviation and try to adjust the
difference permanently. This calls for corrective action for permanent results. Though it
may be difficult or time consuming to go to the source of deviation, it saves time and
resources tomorrow when the problem may get bigger.
BASIS OF PERFORMANCE APPRAISAL:

What should be rated?

Six criteria’s are there for assessing performance i.e.

• Quality
• Quantity
• Timeliness
• Cost effectiveness
• Need for supervision
• Interpersonal impact
WHO WILL APPRAISE?

The performance supervisor is the right person to evaluate the performance of the
employee. It is because the supervisor monitors the progress of the employee on a day-
to-day basis.

SUBORDINATES:

The subordinates access the performance of the manager and this is not very common
in our country, at least.

MANAGER BY HIMSELF OR HERSELF

This is called self-appraisal. The manager is encouraged to access his own performance
and forward this report to the management for necessary action.

USERS OF SERVICES:

Most of the times, the customers of the services are the real judges of the performance
the department. The personnel in the service department can be assessed based on the
customer satisfaction surveys.

CONSULTANTS:
More often, an outside consultant is engaged for appraising the performance of the
employee at different levels. This method is preferred to overcome the problem of bias
or subjectively in the process of appraisal. The success of performance appraisal richly
depends on how best it is carried out in an unbiased manner performance appraisal is a

tool to diagnose the deficiencies of the employee’s skill and knowledge, and also to
determine their training and development needs.

METHODS OF PERFORMANCE APPRAISAL

To make and effective evaluation of the performance of appraise, the appraiser should
select a particular technique. Several methods and techniques of appraisal are available
for measuring

the performance of and employee. There are differed for various reasons. They are
broadly categorized in two categories.

 Traditional methods
 Modern methods

TRADITIONAL METHODS:

The traditional method lay emphasis on the rating on the individual’s personality &
responsibility, creativity, integrity leadership potential, intelligence, judgment,
organization ability, etc.,

The various traditional methods are

1. Straight ranking method

2. man to man comparison method

3. Grading
4. Graphic rating scales

5. Forced choices description method

6. Forced distribution method

7. Checklist

8. Freeform essay method

9. Critical incidents

10. Group appraisal

11. Field review method

12. Paired comparison method

MODERN METHODS:

Modern methods place more emphasis on the evaluation of work result-job

achievements than on personality traits. Result oriented appraisals tend to be more
objective and worthwhile, especially for counseling and development purposes.

The modern methods are

1. Assessment centers

2. Appraisal by result or management by objective

3. Human assets accounting method

4. Behaviorally anchored rating scales (BARS)

5. 360-Degree performance appraisal

360-DEGREE PERFORMANCE APPRAISAL:

This is one on the latest and widely used method of performance subordinates do the
appraisal .Hence this is a method where each and every person with whom the
employee may interact during his work does the appraisal of one person .This is an
effective method among all since this is method in which there is a possibility of hundred
percent discussions with people disregarding with their cadres and also possible for
receiving more ideas from all. They may include the security guard, the receptionist, the
sweepers evade boys and of course his superior, subordinates and peers.

CHALLENGES OF PERFORMANCE APPRAISAL

• Create a culture of excellence that inspires every employee to improve and lend
himself or herself to be assessed.
• Align organizational objectives to individual aspirations
• Clear growth paths for talented individuals.
• Provide new challenges to rejuvenate careers that have reached the plateau stage.
• Forge a partnership with people for managing their careers.
• Empower employees to make decisions without the fear of failing.
• Embed teamwork in all operational processes
• Debureaucratise the organization structure for ease of flow of information
Appraising Teams

Set tangible targets for

Identify KRAs critical to
each KRA.In corporate
business during the
stretch elements for each
year
target. Fix the minimum
acceptable target

Evaluate performance of Determine intangible

the team against parameters which indicate
predetermined targets pockets of individual
excellence with the team

Communicate the results

Measure the performance
to ensure transparency
of the team every month
 Identify individuals who have
excelled discount subjective factors
by including assessors from outside
the team to identity outstanding
individuals

IMPLEMENTATION AND EVALUATION SYSTEM OF PERFORMANCE APPRAISAL:

After developing a concrete performance appraisal system, its effective

implementation and evaluation is proceeded with along with the rater, rate should also
aware of the structure and content of the performance appraisal system the framework
of evaluation process. Hence the rates should fully inform about these aspects because
these information provided by them will not fully serve purpose with out having
knowledge about these various aspects. Once the information is obtained from the
rates, an unbiased and objective evaluation is done and the conclusion is derived.

Performance Appraisal is a NINE-STEP process

1. Establish performance standards

2. Communicate standards \ expectations to employee

3. Measure actual performance by following the instructions

4. Adjust the actual performance with that of others and pervious

5. Compare the adjusted performance with standards and find out deviations, if any.

6. Compare the actual performance to employee concerned.

7. Communicate the actual performance to employee concerned.

8. Suggest changes in job analysis and standards, if any.

9. Follow-up performance appraisal report.

BENEFITS OF APPRAISAL:

It offers a rare change for a supervisor and subordinate to have “time out” for a one-on
one discussion of important work issues that might not otherwise be addressed.

Almost universally, where performance appraisal is conducted properly, both

supervisors and subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify
and correct existing problems, and to encourage better future performance. Thus the
performance of the whole organization is enhanced.

For many employees, an “official” appraisal interview may be the only time they get to
have exclusive, uninterrupted access to their supervisor.

What is performance?

Performance means outcome achieved or accomplishment at work. Performance mainly

consists of two aspects.

 Behavior
 Outcome
CARKHUFF’S equation for human productivity

PRODUCTIVITY =RESPONSIVENESS +INTIATIVE +PROCESSING

Excellence is not a skill; it’s in an attitude.

EFFICACY=EFFICENCY +EFFECTIVENESS

1. Capacity or power to produce a desired effect

2. The ratio of the output to the input of any system

3. Ability to achieve stated goals or objectives, judged in terms of both output and
impact

PERFORMANCE INDICATORS
Performance strategies can be worked out once we are clear of our performance goals.
Now we can plan how to achieve the desired performance goals.

PERFORMANCE REQUIREMENTS

These strategies may define what kind of resources, human or non-human, are
required, what are the current resources, what are the gaps in the resources, how are
we going to fill these resources gap and what is the time frame for the same, so that we
have enough resources at the earliest to extract desired performance objectives.

Further, we also need to assess, our current manpower / skills available, competencies
available in the organization and their current proficiency levels, and to what extent their
proficiency levels need to be improved to achieve performance goals. This gives us gaps.

PERFORMANCE ON:

Planning:

Once we identify requirements of performance, we can plan performance extraction in

terms of the following …

Identify and understand if current job profiles, roles are consistent to extract desired
performance. If there is any role conflict or need to realign or redefine certain job profiles
or positions, do the rework and structure each job profile in each function that enables
the job holder to give expected results as per KRAs. Further clarify transparently division
of labor where each employee has enough workload. So that performance doesn’t get
stressed and stretched. High level of employee engagement is required. Manpower
planning is also an important aspect at this stage. Conduct a thorough analysis of
existing manpower structure, desired manpower.

Ensuring organization has the right infrastructure to deliver performance is also very
essential. Ensure the company has enough resources like required technology, tools &
equipments, facilities, infrastructure etc., that facilities performance without any
disturbances.

Policy:
Right policy framework is also a key to understand company’s performance philosophy,
performance expectations and the manner in which performance has to be delivered. A
detailed performance management policy needs to be defined which outlines company’s
performance framework, measurement and assessment methodologies, rewarding and
awarding mechanisms, and performance improvement facilities etc.

PERFORMANCE APPRAISAL SYSTEM IN IVRCL

1. OBJECTIVE AND PHILOSOPHY:

Performance appraisal process in IVRCL LTD is essentially focused Performance
through employee development. Our endeavor is to build a sustainable performance
culture. The immediate superior will appraise the sub-ordinate on his performance on
the Job. This also implies that the focus is on performance improvement, growth and
employee alignment with organization strategy and values and not merely on rewards
and differentiation.

PERFORMANCE APPRISAL PHILOSOSPHY IN IVRCL LTD

 Align employees with organizational strategy and values.

 Be perceived as transparent and fair in the process
 Be oriented to people development and yet, permit the onus of development
on the individual.
 Encourage teamwork and collaboration.
 Create a system of assessment by team rather than individuals.
 Differentiate among team members based on performance and potential.

2. KEY PROCESSES OF PERFORMANCE APPRAISAL:

a. Performance Planning \ Goal Setting.
b. Performance Coaching
c. Performance Reviews, Yearly \ Annual Review
d. Feedback and Consequence Management
PERFORMANCE PLANNING \ GOAL SETTING

Once the business \ functional score card is frozen, the superior and the employee
should meet to clarify expectations from their key customers \ departments and each
other. This input should be converted into performance goal to be met during the
review period.

Conceptual Approach

To be a good coach one must believe that:

1. An individual has the capacity to grow: Every individual has an innate

capability to grow and excel. The role of the developer is to create an enabling
climate.

2. Human nature is essentially constructive and social: At heart, people are self-
motivated to develop themselves

3. Self – respect is a basic human need: The superior under no circumstances

should ill-treat their subordinate as this may ‘kill the spirit’ of the employee.

4. Perceptions determine experience and behavior: Employees exhibit the kind

of behavior that you expect of them. Positive strokes or praise help reinforce a
particular behavior.

A relationship based on empathy, warmth, respect and genuineness is necessary for the
success of any coaching initiative.

Performance Review:

The superior while reviewing the performance of the employee shall try to take
feedback from as many sources as possible in order to arrive at a reasonably objective
conclusion. It would be ideal if the superior regularly gets this input from the relevant
departments to avoid any bias. The superior then analyzes goal achievements data,
self – development efforts and the feedback from customers, suppliers or plant
managers. The superior may call the employee to present his\her performance during
the review period and seek clarification wherever required. During the exploratory
meeting, the superior must not give any performance feedback or the rating to the
employee.

 HALO EFFECT

The halo effect is the tendency to rate someone high or low in all categories because
he or she is high or low in one or two areas.

 RECENCY BIAS

Tendency to assess people based on most recent behavior and ignoring behavior that is
“older”.

 LENIENCY BIAS

Tendency to rate higher than is warranted, usually by accompanied by some

rationalization as to why this is appropriate.

 STRICTNESS BIAS

Tendency to rate lower than is warranted, usually by judgment as to why this is

inappropriate.

 CENTRAL TENDENCY

Central tendency is when one tends to put everyone in the middle of the road and all of
your subordinates as “competent”.

 PERSONAL BIAS
This occur when a rater gives a higher rating because the employee has qualities similar
to him or her (or a lower rating because the employee has dissimilar qualities)

FEEDBACK AND CONSEQUENCE MANAGEMENT

a) Superior gives feedback and review performance of their team at various times during
the year. However the feedback and development plan at the end of the performance
cycle is important, as it is a holistic review taking inputs from various departments.

At the same time, the development plan needs to be prepared in congruence with the
self-development plans, technical and behavioral needs and career aspirations and spelt
out by employee in the performance appraisal form to enable better performance.

It is likely that some employees would be disappointed when they receive the final
rating. It is the job of the superior to manage the aspiration of different levels of
performance and keep them motivated. It is necessary that the superior discusses the
rating in detail with the employee and explain the rationale.

Performance appraisal also linked to the reward system of the organization. Merit pay
increases and individual bonuses are a function of individual, business and organization
performance.

KEY PLAYERS IN ROLE OF PERFORMANCE APPRAISAL:

Role of the Employee: Employee are expected to clarify expectations from their key
departments who may be their immediate superior, customers, peers and subordinates
at beginning of the review period and use the same as an input for framing goals.
Employees are also expected to proactively seek performance feedback from key
departments. During the yearly review, the bonus is on the employees to seek
clarification on the expectations and give an honest feedback to his superior.

The employee is also required to give honest input at the end of the review period about
the quality of the process, feedback and the improvement areas at job.

The employee should proactively seek the execution of the development plan with both
the superior and the concerned HR. Role of the Supervisor: Supervisor is expected to
ensure that the goals are set and signed off as per organizational timeliness. In
Business Units or functions where goals change frequently based on changing upstream
priorities, the supervisor must chart out a broad roadmap as goals for his team. In case
the employee has project goals, the supervisor needs to involve the employees at the
time of goal setting.The supervisor should give sufficient comfort to the employee so that
he\she is able to respond with honest feedback. However, it must be made clear by the
supervisor that the rating given are non-negotiable and cannot be altered following the
final discussion and closure unless it is prima facie evident that a gross injustice has
been made. The supervisor may call the employee during the review period to
understand what the employee had written and seek clarification wherever required. The
superior is accepted to follow with respective HR to implement the development plan.

Role of HR: HR has to support and educate the managers (supervisors and employees)
in administrative and technical areas such as coaching and feedback. HR will also help
in implementing the development plan and analyze the closure section for monitoring
quality of feedback.

Key principles for fixing KRAs:

S = Be Specific.
 M = Measurable.

A = Accurate.

R = Realistic.

T = Time Bound.

PROPOSED RATING SCALE:

Rating Scale for performance Targets

A four-point Scale is proposed for measuring performance targets.

They are as follows:

Outstanding: Good : Satisfactory : To be removed :

(Achievers) (Contributors) (Performers) (Under performers)

Rating : A Rating : B Rating : C Rating : D

Exceeds expected Meets expected Meets most of Does not meet expected
targets. targets. expected targets. targets.

25% of employees 50% of employees 20% of employees 5% of employees are to be

are to be rated “A” are to be rated “ B ” are to be rated “C” rated “D”

Individual Rating Pattern:

While evaluating an employee the weight ages are fixed basing on kRAs achieved and
employee attributes. The scores are as under:

KRAs Achieved : 75
 100

Attributes :25

Performance Management Process

Planning Reviewing
Performa performan

Managing Rewarding
Performa performan
Performance Appraisal Flow Chart:

Appraisee Corp. HR
Corp. Appraise
/appraiser (filled in
r (Mid
KRAs for
HR (KRAs fixing)

Corp. HR

(For
Appraiser Appraise Records)
(For final e
Appraisal)
(For self

Reviewer
(For Review)
 Corp. HR
(Finalization)

KRAs Planning & Fixing Form (2008-2009):

Employee Code & Grade

Employee Name
Designation
Report To
Location (Division/Region/Ho)
Functional Area

Appraiser explains to the appraise:

Guidelines for mid year (Half year) review:

KRAs Annual Appraisal (self) form (2008-2009):

A. Exceeds expected Targets

B. Meets expected targets
C. Meets all most all expected targets
D. Does not meet expected targets
 4.9 Pay Roll Section:

STEPS:

1. Collecting Attendance.
2. Updating of records.
3. Calculation of payroll.
4. Distribution of salary.

PROCEDURE:

After employee placement/joining the recruitment section handovers the details of the
employees enclosed in a file to the payroll department. In IVRCL Pay Roll process starts
from 25th of every month. First part is attendance, which will be coming from last 26 th to
25th of the month. Salary is paid for 1st to 31st but attendance is calculated from 25th to
26th of the month. The Pay Roll department then looks after the following aspect of the
employees.

Time office management (attendance)

ATTENDANCE:

1. Leaves

2. Advances

3. Transfer order

4. New Joining

5. Left.
Leaves: There are three types of leaves.1.Casual leave 2.Sick leave 3.Earned leave
.Casual leaves-10

Sick leaves-10

Earned leaves-20

1. CASUAL LEAVE:

ELIGIBILITY:

All Trainees, Probationers and Permanent employees of IVRCL (irrespective of grades)

are entitled to CL of 10 working days in a calendar year.

The employees who join the organization during the year will be entitled to CL
on prorate basis to their service in that year.

GENERAL CONDITIONS

 The CL will be credited in the beginning of the calendar year.

 The un-availed CL will lapse at the end of the calendar year
 Casual Leave is not encashable.
 Holidays and Weekly offs falling during the C.L shall not be counted as part of C.L.
 Employees are expected to apply for CL prior to availing the leave unless in the
case of unforeseen circumstances.
 CL cannot be availed for less than half day or more than 3 days at a time or in a
month.
 The availing of CL should be distributed over the year i.e. one should not exhaust
the complete leave in the beginning of the year itself.
 Casual Leave cannot be combined with any other type of leave. If employee takes
Casual Leave and there after continued Sick Leave the entire leave shall be
converted as Sick Leave only.
 Employees must obtain prior sanction from the sanctioning authority before availing
Casual Leave. But due to sudden and unforeseen circumstances, if it is not
possible for the employee to obtain prior approval, then intimation may be sent to
the leave sanctioning authority about his inability to attend duty giving the reasons
thereof and should obtain approval on the first working day immediately on
resuming duty.
 Granting of Casual Leave shall be subject to exigencies of work and at the
discretion of the leave sanctioning authority.
2.SICK LEAVE:

ELIGIBILITY:
All Trainees, Probationers and Permanent employees of IVRCL (irrespective of
grades) are entitled to SL of 10 working days in a calendar year.

ESI coverable employees are also entitled to 10 days SL. But whenever they availed
ESI SL benefits, they should not availed company SL and this period will be shown in
our payroll as LOP. The employees who join the organization during the year will be
entitled to only the SL on prorata basis to their service in the year.

ACCUMILATION OF SL:
SL can be accumulated up to 60 days and the leave in excess of the same will be
lapsed.

GENERAL CONDITIONS:
 The SL will be credited in the beginning of the calendar year.
 Sick Leave is not encashable.
 The un-availed S.L will be carried forwarded to the following year.
 SL can be combined with EL if the employee does not have sufficient SL to meet
the requirement.
 Sick Leave is a contingency leave to be availed only when an employee is
disabled to work on account of sickness. Sick Leave should not be treated as a
substitute for Casual Leave.
  Holidays and Weekly offs falling during the Sick Leave shall be counted as part
of Sick Leave only.
3.ENCASHMENT OF EL:

There is No provision of Encasement of EL during the service. But employees at

the time of separation are entitled to total encashment of EL up to 120 days only in the
following cases at his full & final settlement.

 On termination of service by the company

 On the death of an employee, in which case payment will be made to the
dependents of the deceased employee .
 When an employee resigns from service after giving due notice
 On retirement from Company’s service.
For calculation of EL encashment, only current Basic salary will be taken into account.

PROCEDURE OF AVAILING EL:

Applications for EL must be made in the prescribed Leave Card at least 15 days
in advance and sanctioned by the Head of the Department and should be submitted to
the HR Dept. prior to proceeding on leave.

GENERAL CONDITIONS:

 The EL will be credited at the end of the calendar year.

 The un-availed EL will be carried forwarded to the following year.
 Earned Leave will be granted at the discretion of the Management and nothing shall
limit the right of the Management to refuse, revoke or curtail leave as the exigencies
of the Company’s work may require.
 Either weekly offs or paid holidays, fall in between the EL Period or prefixing
/suffixing shall not be counted as part of the EL.
 In case the duration of Earned leave has to be extended for compelling reasons, the
information should reach the leave sanctioning authority at least 3 days before the
expiry of the sanctioned leave. The extended period of leave must be regularized
within 48 hours after joining duty.
 EL can be combined with SL, if the employee falls sick while availing EL and if he
does not have sufficient EL to meet the requirement.
LEAVE ON LOSS OF PAY:
 Leave on loss of pay shall not be permitted.
 However, the advance leave from the following year may be sanctioned as a special
case to the extent of accrued leave as on date with the prior sanction of General
Manager and above only.

2. Advance: If the employee takes any advance salary it is shown in the remarks
column.

3. Transfer Order: After joining if a requirement is seen in any other particular area he
is posted there or if the employees needs transfer due to some problems and the
particular vacancy is available then he is transferred there.

4. New Joining: If any new employee joins his particulars are entered in the recorded.

5. Left: Terminated, Absconded, Resigned type of employees comes under this

category.

• Employee Benefit (medical reimbursement, Leave travel allowance)

• FULL & Final settlement. Employees are of 4 types they are:

1. Temporary Employees

2. Trainees-1yr
 3. Permanent

4. Probation-6 months

G9-G5 (Probation, Temporary, Trainees) Employees whenever submits the

resignation letter can resign from the company.

G4-G0 (Probation) Employees have to give 1 month notice letter.

G9-G5 (Permanent) Employees have to give 1month notice letter.

G4-G0 (Permanent) Employees have to give 3 months notice letter.

STEPS:

 Resignation Acceptance.

 No dues certificate.

 Full & Final settlement.

 Full & Final settlement copies send to account department for verification.

 Next it will be passed to cash department for preparation of cheque.

 Cash department dispatches the cheque, Final copy, Experience letter(if he is

permanent employees) Form-19, Form 10c to employee address.

 The employee fills up the forms and sends it back, then P.F section members
sends the form to Government Office according to the norms they make
payment to the employees via bank.
 4.10Statuary compliance

Employees’ Provident Funds and Misc. Provisions Act, 1952

Employee’s Pension Scheme Act, 1995

The Act extends to the whole of India except the State of J&K. It is applicable to:

- Every factory engaged in any industry specified in Schedule I in which 20 or more

persons are employed.
 - Contract labour is included but casual labour is excluded for counting the strength
of employees.
- An apprentice is only a learner and not an employee. Trainees cannot be taken
as employees. Sweepers and Chowkidars drawing paltry sums per month and not
borne on the regular staff sheet are to be excluded from the employment
strength.
- A newly set-up establishment for an initial period of 3 years from the date on
which such establishment is, or has been set up.

Salary Limit: Rs.6500/- (Inclusive of all allowances getting through salary slip)

Date of Eligibility: From the Date of joining onwards irrespective of whether he/she is
already member or not.

Contribution: The employer is required to contribute:

a) In case of establishment, Employing less than 20 persons – 10% of the basic

wages, dearness allowance and retaining allowance, if any
b) In case of all other establishments employing 20 or more persons –12% of the
wages, DA, etc.

Once EPF Act is applicable, automatically, Employees Pension Scheme, 1995 and
Deposit-Linked Insurance Fund are also applicable.

Employees: 12% of their basic salary

Employers: 8.33% Pension Scheme 12 % sub divided

into

3.67% EPF EPF & Pension

Scheme

The maximum contribution to an employee’s pension scheme is Rs.541 irrespective of

employee’s salary more than Rs.6500.
Obligation of Employers:

- To pay the employer’s and employees’ contributions and administration Charges as

required under the Act.
- Return of ownership in Form No.5A within 15 days of the applicability of the
Scheme.
- Return of Membership of employees First in Form no.9 and then in Form No.5
together with Declaration in Form No.2) within 15 days of close of every month.
- A return in the prescribed form in respect of employees leaving the service during
the month, within 15 days of close of every month. Where there is no employee
becoming a member of the fund or leaving service during the month, the employer
shall send a ‘Nil” Return.
- Return of Contributions with copies of challans within 25 days of close of each
month.
- Annual Return of Contribution in Form No.6-A.-within one month of the close of
each year.

Records to be maintained: Contribution Cards, Eligibility Register, PF Register, PF

Ledger, Inspection Book.

Obligation of Employees:

- To furnish Declaration and Nomination form at the time of employment or joining

the fund.
- Allow the employer to deduct the employee’s contribution every month and
deposit the same with the PF Commissioner.

Monthly & Annual Returns:

Documents required for monthly filing:
- SBI bank challans (4)
- Form 5
- Form 10
- Form 12 A
- Official Covering letter
The employer has to submit the above said documents at the nearest authorized SBI
Bank along with the challans by 15th of every month. Bank keeps 2 challans for their
reference in which 1 challan is sent to the Regional PF Office and returns the other 2
challans to the employer. The employer with two challans files 1 each to the copy of the
submitted documents and forwards 1 set of file to the Regional PF Office by 25 th of every
month and maintains a set for acknowledgement purpose.

Documents required for annual returns:

- Form 6A
- Form 3A
- Official Covering letter
- Reconciliation Statement
The employer has to submit the above said documents at the Regional PF
Commissioner Office by 30th April of every year.

ESI Act, 1948

The Act is applicable to whole of India where

- the industries carry manufacturing process by engaging 10 or more workmen by

using electric power or
- 20 or more persons without using electric power.
Wage Limit: Rs.10000/- (inclusive of all allowances) p.m.

For becoming ESI Member, no Overtime amount is taken into account, but for
contribution purpose, it is taken into account.

Employee Contribution: 1.75%

 Employer’s Contribution: 4.75%

Maternity Benefit Act and Workmen Compensation Act are not applicable where ESI Act
is applicable.

Return of Contributions

The employer should prepare a ‘Return of Contributions’ in Form 5, in quadruplicate (4

copies), by entering details in the ascending order on insurance numbers and draw the
totals. This return of contributions along with the receipted copies of challans of monthly
payments should be submitted to the Regional Office, with 30 days of the end of
contribution period, or closure of the factory or the establishment.

Note: In the remarks column of the return the date of appointment and the date of
leaving service should be duly filled-in.

Contribution Period and Benefit Period

The period, during which an employee is entitled to, or avails of a benefit, is called the
‘benefit period’. The amount of benefit is calculated with respect to the contributions paid
during the corresponding ‘contribution period’, which are as follows:

Contribution Period Benefit Period

(i) 1st April to 30th September 1st January of the following year to

30th June.

(ii) 1st October to 31st March of 1st July to31st December.

the following year

Identity Cards

Every member employee shall be provided a Permanent Identity Card. The employer
shall hand over the Identify Cards to those employees who have been in employment for
atleast 3 months and obtain his signature/thumb impression on the Identify Card and in
a register in token of receipt of the card. If any employee leaves service before 3
months, his Identify Card and Temporary Identification Certificate should be returned to
the Regional Office.

Deduction for Employee’s Contribution from Wages

The employer may deduct the employees contribution from his wages in respect of the
period for which the contribution is payable.

Employer’s Contribution not to be Deducted

No deduction shall be made from the wages of any employee, for the employer’s
contribution paid or payable in respect of him.

Employer Not to Reduce Wages, Benefits, etc.

The employer shall not reduce wages or discontinue or reduce any benefits conferred
under the conditions of services payable to an employee, on account of his liability for
contributions payable under the Act.

The Payment of Gratuity Act, 1972

Applicability:

All Industries/Commercial Establishments who are registered under Shops &

Establishment Act or Factories Act.

Gratuity Formula:

Last Wage Drawn 15 No. of years in service

26

Maximum Gratuity should not exceed Rs. 3, 50, 000

Wage means whatever you are calculating for EPF purpose.

Eligibility: After completion of 5 years total service (for this purpose 6 months and
above can be rounded off to full years services and less than 6 months need not be.).
For eligibility, it is after 5 year service, but for payment, from the date of joining, the
period will be taken into calculation. In death case, this 5 year services is waived off that
means, if an employee dies after completion of 3 year total service, his nominee is
eligible to get 3 years Gratuity amount from the organization. Employer is to take
Nomination Form as per rules from the employee concerned once he completes one
year service from the date of joining. Forfeiture or Deductions are allowable from the
Gratuity amount as per provisions stipulated in the Act.

The Maternity Benefit Act, 1961

Objectives
The Maternity Benefit Act, 1961, aims at regulation of employment of women employees
in certain establishments for certain periods before and after child birth and provision of
maternity and certain other benefits. Some State Acts also provide for additional benefits
such as free medical aid, maternity bonus, provisions of crèches, additional rest
intervals, etc.

Scope and Coverage

The Act extends to the whole of India and is applicable to every factory, mine or
plantation (including those belonging to Government) and an establishment engaged in
the exhibition of equestrian, acrobatic and other performances, irrespective of the
number of employees, and to every shop or establishment wherein 10 or more persons
are employed or were employed on any day of the preceding 12 months. The State
Government may extend the Act to any other establishment or class of establishments;
industrial, commercial agricultural or otherwise.

However, the Act does not apply to any such factory/other establishment to which the
provisions of the Employees’ State Insurance Act are applicable for the time being. But
where the factory/ establishment is governed under the E.S.I Act, and the woman
employee is not qualified to claim maternity benefit under section 50 of that Act, because
her wages exceed Rs. 3,000 p.m. (or the amount so specified u/s 2(9) of the ESI Act), or
for any other reason, then such woman employee is entitled to claim maternity benefit
under this Act till she becomes qualified to claim maternity benefit under this Act till she
becomes qualified to claim maternity benefit under the E.S.I Act.

Employees Entitled
Every woman employee, whether employed directly or through a contractor, who has
actually worked in the establishment for a period of at least 80 days during the 12
months immediately preceding the date of her expected delivery, is entitled to receive
maternity benefit.

The qualifying period of 80 days shall not apply to a woman who has immigrated into the
State of Assam and was pregnant at the time of immigration.

For calculating the number of days on which a woman has actually worked during the
preceding 12 months, the days on which she has been laid off or was on holidays with
wages, shall also be counted. There is neither a wage ceiling for coverage under the Act
not there is nay restriction as regards the type of work a woman is engaged in. Female
workers engaged on casual basis or on muster roll on daily wages are also entitled to benefit
under the Act since there is nothing in the Act which confers the benefit only on regular woman
employees.

Amount of Benefit
The maternity benefit is payable to a woman worker at the rate of average daily wages
for the period of her actual absence, during the benefit period. Wages for his purpose
includes basic wages, dearness and house rent allowance, incentive bonus and money
value of concessional supply of food grains and other articles.

If a woman dies during the benefit period, the benefit is payable-

(i) up to and including the day of her death, in case she dies without
delivering a child;
(ii) for the entire period, in case she dies after delivering the child; or
 (iii) up to and including the day of child’s death, in case the child also dies
during that period.
The benefit is payable for a maximum period of 12 weeks of which not more than
six weeks shall precede the date of her expected delivery.

Payment of Maternity Benefit

The employer is liable to pay the amount of maternity benefit for the period preceding
the date of expected delivery, in advance to the woman employee on production of the
proof of pregnancy (in the prescribed form). The balance of amount due for the
subsequent period should be paid within 48 hours of production of proof of delivery (in
the prescribed form).

The Workmen’s Compensation Act, 1923

Objectives

The Workmen’s Compensation Act, 1923, aims to provide workmen and /or their
dependents some relief in case of accidents arising out of and in the course of
employment and causing either death or disablement of workmen.

Scope and Coverage

The Act extends to the whole of India and tie applied to railways and other transport
establishments, factories, establishments engaged in making, altering, repairing,
adapting, transport or sale of any article, mines, docks, establishments engage in
constructions, fire-brigade, plantations, oilfields and other employments listed in
Schedule II of the Act. The workmen’s Compensation (Amendment) Act, 2000 w.e.f.
8.12.2000 has brought all the workers within its ambit irrespective of their nature of
employment i.e. whether employed on casual basis or otherwise than for the purposes
of the employer’s trade or business. For the first time, casual labourers will be provided
compensation for death or disability. Earlier the Workmen’s

Compensation (Amendment) Act, 1995 extended the scope of the Act to cover workers
of newspaper establishments, drivers cleaners, etc. working in connection with a motor
vehicle, workers employed by Indian companies abroad, persons engaged in spraying
or dusting of insecticides or pesticides in agricultural operations, mechanized harvesting
and thrashing, horticultural operations, and doing other mechanical jobs. Even the
cooks employed in hotels, restaurants using power, liquefied petroleum gas or any other
mechanical device, in the process

of cooking are covered. Establishments which are covered by the Employees State
Insurance Act, outside the purview of this Act.

Employees Entitled

Every employee (including those employed through a contractor and also casual
employees), who suffers an injury in any accident arising out of and in the course of his
employment, shall be entitled for compensation under the Act.

The interpretation of the definition of ‘workman’ should be on ‘purposive approach, and

not on the ‘orthodox approach’. A person employed in a factory which is yet to
commence production would not be deprived of the benefit of the provisions of the Act.
The workman employed in a premises where manufacturing

process is intended to be carried on is not necessarily required to be actually connected

with manufacturing process. Any person engaged in such premises who is contributing
for the intended manufacturing process would be deemed to be workman for the
purpose of the Act.

Amount of Compensation

The amounts of compensation payable by the employer shall be calculated as follows;

(a) In case of death. 50% of the monthly wages x Relevant

 Factor or Rs. (80,000), whichever is
more.

And Rs. (2,500) for funeral expenses.

(b) In case of total permanent disablement 60% of the monthly wages x relevant
factor

specified under Schedule I. Relevant Factor or Rs. (90,000),

whichever

is more.

(c ) In case of partial permanent disablement Such percentage or the compensation

specified under Schedule I. payable in case (b) above as is

the

percentage of the loss in earning

capacity

(specified in Schedule I)

(d) In case of partial permanent Such percentage of the compensation

payable in case (b) above, as is

proportionate to the loss of earning
capacity

Notes:

(i) ‘Relevant Factor’ for calculation of the amount of compensation have been

specified in Schedule IV of the Act.

(ii) Where the monthly wages of an employee exceed Rs. 4000; his monthly

wages for the purposes of case (a) and 9b) above, shall be deemed to be Rs. 4000 only.

(iii)‘Monthly wages; for this purpose means

 (a) Where the workman has been in continuous service of the employer for a
period of atleast 12 months preceding the accident.

Monthly Wages = Total wages due for the last 12 months

---------------------------------------------------

12

(b) Where the workman has been in continuous service of the employer for a
period of less than 12 months, preceding the accident:

Total wages due for the period of 12

Months preceding the accident being

Earned by a similar workman (i.e.on

Same work)

Monthly Wages = --------------------------------------------------

12

(c) In any other case:

Total wages earned in the last

Continuous period of service

Monthly Wages = ---------------------------------------------------------

Number of Days in such period

Continuous service shall be a period of service not interrupted by absence

from work for a period exceeding 14 days.

(i) ‘Wages’ for the purposes of this Act, includes any benefit or perquisite
expressible in terms of money but excludes traveling allowance/concession,
employer’s contribution to a pension or provident fund or a sum paid to cover
any special expenses incidental to his employment. The definition of wages is
very comprehensive. It includes bonus, night out allowance, dearness
allowance, gratuity, free quarter, food allowance, overtime.
(ii) Where an accident occurs outside India, the amount of compensation payable
under the Act shall be reduced by the amount of compensation, if any, awarded
to such workman in the foreign country.

Medical Examination

The employer may get the concerned workman examined by a qualified medical
practitioner, within 3 days from receiving the notice of accident. The employer must
present himself for such examination otherwise he shall loose his right to the
compensation.

Failure of employer to have the workman medically examined, does not debar him from
challenging the medical certificate produced by the workman.
 4.11 HSEQ

SAFETRY MEASURE AT IVRCL:

HEALTH, SAFETY, ENVIRONMENT AND QUALITY (HSEQ)
Every job involves certain risks. In order to provide a safer and healthy atmosphere at
work place HSEQ is strengthened at all levels in IVRCL.

There is a possibility of occurrence of risk either from external and internal sources.
External sources hear referred to infrastructure and internal sources referred to Behavior
of employees. HSEQ is involved in regulation and controlling the risks involved in jobs.

How to control?

Management of IVRCL is very much concerned about safety measures of its

employees. Hence it posses HSEQ department where all the matters are taken care by
them.

How it does?

Formally and structured site induction training program are conducted by them and
make aware of-

 Health requirements to be maintained.

 Awareness about the hazards and safety measures
 Environmental friendly methods
 Assures quality based products/services

ACIVEMENTS:

 ISO- 9001:2008

 ISO-14001:2004

 OHSAS-18001:2007

OBJECTIVE:

- Quality based products/ services.

- Customer Satisfaction
 - Quality Awareness
- Desire for Excellence
- Continual Improvement
- Zero accidents

Safety is an ethical responsibility. At their core, ethics hold up a positive vision of

what is right and what is good. They define what is worth pursuing as guidance for our
decisions and actions. Workplace injuries and deaths are too often seen as statistics.
But when they happen to someone we love, we suddenly see the reality of the horrible
pain and suffering and its widespread effect. It is our ethical responsibility to do what is
necessary to protect employees from death, injury and illness in the workplace. This is
the only foundation upon which a true safety culture can be established in any
workplace.

Safety is a culture, not a program. The combined commitment and participation of the
entire organization is necessary to create and maintain an effective safety culture. Every
person in the organization, from the top management of the corporation to the newest
employee, is responsible and accountable for preventing injuries.

Management is responsible. Management’s responsibilities are to lead the safety

effort in a sustained and consistent way, establish safety goals, demand accountability
for safety performance and provide the resources necessary for a safe workplace.
Managing safety is the responsibility of every supervisor, from the first line supervisor to
board.

Employees must be trained to work safely. Awareness of safety does not come
naturally. We all need to be trained to work safely. Effective training programs both teach
and motivate employees to be a productive part of the safety culture.
Safety is a condition of employment. The employer must exhaust every reasonable
means to lead, motivate, train and encourage employees to maintain a safe workplace.
But, in the event the employee refuses to take the actions required to work safely, the
employer must utilize a system of progressive discipline to enforce safety requirements
and ensure the cooperation of the employee, or remove the employee from the
workplace to protect the employee and his/her co-workers.

All injuries are preventable. Sometimes accidents occur without the apparent
indication of fault or blame. But there is always some chain of events that occurred
leading up to the accident that, had we recognized the eventual outcome, changes could
have been made. The fundamental belief that injuries are, by their nature, preventable is
a catalyst that encourages us to prevent injuries.

Safety programs must be site-specific with recurring audits of the workplace and
prompt corrective action. The purpose of the workplace audit is to discover and
remedy the actual hazards of the site before they can injure workers. Recurring hazard
analyses, comprehensive inspections and aggressive investigation of accidents or near-
misses discover potential workplace hazards and identify weaknesses in safety plans,
programs, policies and procedures. Safety regulations and generic safety programs are
not sufficient means to discover hazards because they are not specific to the individual
workplace. A safety audit program is site-specific. Whenever a safety deficiency is found,
prompt action is required both to overcome the hazard and to reinforce the message
that safety is a priority.

Safety is good business. Reducing workplace injuries and illnesses reduces the costs
of workers’ compensation, medical expenses, potential government fines and litigation
expenses. Effective workplace safety is not an expense. It is an asset. A properly
managed safety culture based on these eight principles of workplace safety will produce
employees who participate actively in training, identify and alert one another and
management to potential hazards and feel a responsibility for their safety and the safety
of others. Accepting safety as an ethical responsibility demonstrates a sincere concern
for each employee, which establishes the foundation for an effective safety culture

Integrated Management System (IMS) Policy

IVRCL infrastructures & projects Ltd. Is implementing IMS with the following philosophy:

• Service quality

• Customer satisfaction

• Leadership objectives

• System and process

• Continual improvement

• Training & development

• Sensitivity to environment

• Occupational health and safety

• Legal compliances

ISO = International Organization for Standardization.

IVRCL is ISO certified company which has three separate divisions until it has been
implemented IMS policy. The three divisions were Quality, Environment and safety. As a
result of IMS policy IVRCL is forbidden by the rules and regulations of ISO by maintaing
safety, health, quality and environmental factors at the sites/projects.
Auditing is done both internally and externally at the sites/projects by the authorized
persons appointed by the ISO and organization. Internal audit is done once in six
months while the external audit is done once in nine months. The company has acquired
IMS certificate which is valid for 3 years and can be renewed after the expiry by filing the
necessary documents.

IVRCL makes sure that protective and safety measures are taken at the sites in
preventing the labour from the fatal accidents. Quality checks are done very often to
overcome the later damages that could occur after the completion of the site/project.
The following are the safety measures that are followed at the site by the labours:

1. Safety Helmet

2. Eye & Face Protection

3. Dust mask

4. Ear Muffs/Earplug

5. Safety Belt & Harness

6. Foot and Leg Protection

7. Safety Nets

8. Eye wash Fountains

IVRCL gives prime importance to protection of environment and a safe operation of

activities. IVRCL follows a systematic approach to pollution prevention to achieve
continual performance improvement. Promotes awareness among the contractors,
suppliers and customers for shared responsibility towards environmental protection.
1. Applicants undergo structured interviews before being hired.

YES 10 62%

NO 2 23%

I DON’T KNOW 1 15%

Interpretation:
62% of the respondents say that structured interviews are not part of
Recruitment & Selection process. And the rest of the respondent says don’t
agree with it and some of them not given the response

2. Qualified employees have the opportunity to be promoted to positions of

greater pay and/or

responsibility within the company.

YES 10 <YES>

NO 2 <NO_>

I DON’T KNOW 1 <I_DONT_KNO

W>
Interpretation:

77% of the respondents believe that the qualified employees have an

opportunity for growth within the company.

3. Applicants for this job take formal tests before being hired.

YES 2 <YES>

NO 11 <NO_>

I DON’T KNOW 0 <I_DONT_KNO

W>

Interpretation:
85% of the respondents say that they do not take formal tests before being
hired.

4. On Average, how many hours of formal training do you get in this job?

1–5 6 <YES>

5 – 10 3 <NO_>

10 - 15 3 <I_DONT_KNO
W>

15 above 1 8%
Interpretation:

46% of the respondents expressed that only a few hours of formal training is
given by the organization.

5. Employees in this job regularly receive a formal evaluation of their

performance.

YES 9 <YES>

NO 4 <NO_>

I DON’T KNOW 0 <I_DONT_KNO

W>
Interpretation:

69% accept that employees receive formal evaluation of their performance in

a year.

6. Pay raises for employees in this job are based on job performance.

YES 10 <YES>

NO 3 <NO_>

I DON’T KNOW 0 <I_DONT_KNO

W>
Interpretation:

77% of the respondents expressed that pay raises are completely based on
the performance.

7. Were you updated with the HR Policies & Procedures frequently?

YES 6 <YES>

NO 5 <NO_>

I DON’T KNOW 2 <I_DONT_KNO

W>
Interpretation:

46% of the respondents are aware of the HR Policies & Procedures. Nearly
40% of the respondents are not aware with the policies & Procedures.

8. Employees in this job are involved in decision making process.

YES 4 <YES>

NO 8 <NO_>

I DON’T KNOW 1 <I_DONT_KNO

W>
Interpretation:

62% of the respondents expressed that their views are not considered and or
not involved in the decision making process.

<S_NO> .<questions>

YES <sample1> <YES>

NO <sample2> <NO_>

I DON’T KNOW <sample3> <I_DONT_KNO

W>
Interpretation:
54% of the employees expressed that the compliant process is not fair
enough to communicate with the superiors.

6 description statements are listed in this section. Judge how frequently each statement
fits you by circling the number 1-5.

1 = Strongly Disagree 2= Disagree 3=Indifferent 4=Agree 5=Strongly Agree

1 Right now, staying with my organization is a 1 2 3 4 5

matter of necessity.
 2 I do not feel “emotionally” attached to this 1 2 3 4 5
organization.

3 One of the few negative consequences of leaving 1 2 3 4 5

this organization would be the scarcity of other job
opportunities.

4 This organization deserves my loyalty. 1 2 3 4 5

5 I would be very happy to spend the rest of my 1 2 3 4 5

career with this organization if my work is
recognized and benefited.

6 Right candidates are nominated for In House or 1 2 3 4 5

External Training Programs?

From the above description statement that are listed in this section. The response from
the employees of the IVRCL is different that we guess from them coming to the
individual statements of the response let us observe them. The following response of the
above statements.

Statement ::1:: among the 13 responses 8 response rated it to the power of 3 and
the remaining 5 rated to the power of the 4

Statement ::2:: among the 13 responses 5 response rated it to the power of 4 and
the remaining 5 rated to the power of the 4 and reaming 3 rated I to the power of 2

Statement ::3:: among the 13 responses 4 response rated it to the power of 3 and
the remaining 5 rated to the power of the 4 and reaming 4 rated I to the power of 4
Statement ::4:: among the 13 responses 10 response rated it to the power of 5 and
the remaining 3 rated to the power of the 4

Statement ::5:: among the 13 responses 5 response rated it to the power of 5 and
the remaining 5 rated to the power of the 3 and reaming 3 rated I to the power of 2

Statement ::6:: among the 13 responses 5 response rated it to the power of 3 and
the remaining 8 rated to the power of the 4

Findings & Suggestions:

1. Use of recognition/appreciation tools to motivate good performance

2. Existence of a clearly stated HRM policy in writing

3. Creation of management structures for implementation of stated HRM policy

4. Extensive use of training and development covering all the employees

5. Communication with employees on a continuous basis

6. Empowerment of employees individually and through the method of self directing

teams

7. Use of a culture based teamwork rather than structure based small groups
 8. Use of employee attitude surveys for communicating as well as gauging the
progress of change process

9. Self assessment for monitoring people’s satisfaction and effectiveness of human

resource system in relation to both operational and strategic levels of enterprise

10. Loosing an efficient employee in the name of negotiation

11. Job rotation has to be implemented

12. SHRM concepts must be introduced in the HR Policies & Procedures, so that the
future challenges are successfully handled

13. Employees should know the review of performance appraisal once the appraising
is done, so that the employee will try to rectify the weaknesses.

14. Have to ensure that right candidate is at the right job, so that more efforts can be
expected from them with utmost job satisfaction.

15. Induction process should be developed.

16. Corporate Governance must be given a priority in the Company’s Policy, being
the top company.

Conclusion
As discussed in the executive summary, IVRCL believes in the power of “resourceful
humans”. Cultural Initiatives like Family Day, Community Development Programs has
lifted the morale of the employees.

It can not however be said that the HR practice bundle is cause of success of any
successful and visionary company. Instead it seems that innovative HR practices are a
reflection of overall vision of the leaders whose only source of motivation is not the
bottom line.
It gives me immense pleasure to conclude with the findings of my study.

 The employees of IVRCL feel very happy with growth of the

organization and they feel proud to be a part of the organization.
 Management and staff focus more on achieving the company Targets
 Employees Stock Option Scheme is one of the motivating factor to
retain the employees.

This study helped me in fulfilling the gap between the theory that I had learned and its
application that I need to put into practice in my career.

Bibliography

1. www.ivrcl.com
2. www.nicmar.in

3. SHRM by ICFAI Press

4. HRM in Practice by Srinivas R Kandula

5. Scribd.com

6. www.a2zmba.com

7. HR Manual – IVRCL
 Questionnaire on HR Practices

Name: Employee
Code:

Designation: Dept.:

HR Practices Questionnaire

In this questionnaire, you are asked to describe Hr Practices of organization, as you

perceive it.

1 Applicants undergo interviews in organized way (job-related questions,

same questions asked of all applicants) before being hired.

A) Yes B) No C) I don’t know

2 Qualified employees have the opportunity to be promoted to positions
of greater pay and/or responsibility within the company.

A) Yes B) No C) I don’t know

3 Applicants for this job take formal tests (paper and pencil or work
sample) before being hired.

A) Yes B) No C) I don’t know

4 On average, how many hours of official training do you receive in this

job each year?

A) 1 – 5 B) 5 – 10 C) 10 – 15 D) 15 above

5 Employees in this job regularly (at least once a year) receive a formal
evaluation of their performance.

A) Yes B) No C) I don’t know

6 Do you think that Pay raises for employees in the job are based on job
performance?

A) Yes B) No C) I don’t know

7 Were you updated with the HR Policies and Procedures frequently?

A) Yes B) No C) I don’t know

8 Does the employees are involved in processes like quality improvement

groups, problem-solving groups, roundtable discussions, or suggestion
systems.

A) Yes B) No C) I don’t know

9 Employees in this job have a reasonable and fair complaint process.

A) Yes B) No C) I don’t know

Organizational Commitment Questionnaire

In this questionnaire, you are asked to describe your commitment to the

organization in which you are working with, as you perceive it.

6 description statements are listed in this section. Judge how frequently each statement
fits you by circling the number 1-5.
1 = Strongly Disagree 2= Disagree 3=Indifferent 4=Agree 5=Strongly Agree

1 Right now, staying with my organization is a 1 2 3 4

matter of necessity. 5

2 I do not feel “emotionally” attached to this 1 2 3 4

organization. 5

3 One of the few negative consequences of leaving 1 2 3 4

this organization would be the scarcity of other 5
job opportunities.

4 This organization deserves my loyalty. 1 2 3 4

5

5 I would be very happy to spend the rest of my 1 2 3 4

career with this organization if my work is 5
recognized and benefited.

6 Right candidates are nominated for In House or 1 2 3 4

External Training Programs? 5

Thank
you….