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  • A Project Report on the following projects:

    1 Analysis of Social Security & Labor Welfare Project in BHEL.

    2 Analysis of Performance Appraisal System in BHEL3 Employee Satisfaction Survey of BHEL.4 New Suggested HR Policy for BHEL.

    2011-2012Submitted for the partial fulfillment of

    Master of Business Administration (MBA)

    of Maulana Azad National Institute of Technology, Bhopal

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Submitted To Submitted By

    Shri Prajjal Adak HRM DepartmentBHEL BHOPAL(M.P)

    Ankit Michael Samuel 3rd Sem MBA,MANIT

    Table of ContentsDeclaration i

    Certificate ii

    Acknowledgements iii

    Preface iv

    Human Resource Management v1.1 Introduction

    1.2 HRM Strategy

    1.3 Functions of HRM

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1.4 Objectives of HRMProfile of the Organization vi

    2.1 Company History

    2.2 Manufacturing Units of BHEL

    2.3 Introduction to BHEL Bhopal

    2.4 BHEL, a candidate for Maharatna Company.

    BHEL Human Resource Departments vii

    3.1 Introduction3.2 Descriptions of HR Departments3.3 Functions of HR Departments3.4 Levels of Employees 3.5 Organizational Hierarchy3.6 Human Resource Practices in BHEL

    Gantt Chart viii

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    I. Study on Social Security & Welfare Schemes in BHELChapter 1

    I.1 IntroductionI.2 Welfare Briefing

    1.2.1 Welfare Schemes in BHEL

    1.2.1.1 Statutory welfare scheme

    1.2.1.2 Non- Statutory Welfare Scheme

    I.3 Statutory labor welfare facilities

    I.4 Non statutory labor welfare facilitiesI.5 Objectives of the StudyI.6 Social Security Schemes in BHEL

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Chapter 2 2.1 Social Security Schemes in BHEL

    2.1.1 Group Saving Linked Insurance Scheme (GSLIS)2.1.1.1.1Amount Insured2.1.1.1.2Premium Per Month. (In Rs.)

    2.1.2 Death Relief Fund (DRFS)2.1.3 Employee Deposit Linked insurance (EDLI)

    2.1.3.1 Amount Insured2.1.4 Group Insurance Scheme (GIS)

    2.1.4.1 Amount Insured

    2.1.5 Group Personnel Accident Policy(GPAP)2.1.5.1 ICICI LOMBARD

    2.1.5.1.1 Compensation

    2.1.5.1.2 The coverage for employees

    2.1.5.1.3 Process

    2.1.6 Gratuity 2.1.6.1 Gratuity Calculation:

    2.1.7 The Employees Family Pension Scheme

    2.1.7.1 Calculations

    2.1.7.2 Benefits

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.8 Provident Fund2.1.8.1 Provident Fund Calculations

    2.1.9 Earned Leave2.1.10 Retired Employees' Contributory Health Scheme

    2.1.11 Act: The workmens Compensation Act, 1923 2.1.11.1 Main Provisions 2.1.11.2 Compensation

    2.1.11.3 The process of providing The Workmens Compensation in BHEL

    2.1.11.4 The Claim process

    2.1.11.4.1 Preparation of Accident Report and Compensation Amount

    2.1.11.4.2 Procedure

    2.1.10 Retired Employees' Contributory Health Scheme2.1.10.1 Sample Forms (to be filled by employees)

    Chapter 3

    3.1 Live Case Handling in BHEL

    3.1.1 Accident case

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    3.1.1.1 Rules of half monthly compensation (HMC) Calculation. 3.1.1.2 Rules for Earned Leave Calculation

    3.1.1.3 Rules for Lumsum Payment

    3.1.2 Death case

    3.2 Finding of the Study

    3.3 Suggestions

    3.4 Conclusion

    II. Analysis of Performance Appraisal System in BHELChapter 11.1 Introduction1.2 Objectives of Performance Appraisal1.3 Purpose of Appraisal System1.4 List of Skills/Competencies to be assessed for executives

    in grades E1A To E5 1.5 List of Skills/Competencies to be assessed for executives

    in grades E6 & E71.6 Values1.7 Generic Values

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1.8 Role of Intermediary Level Executives1.9 Role of Accepting Authority1.10Chi- Square Test

    Chapter 2 PERFORMANCE APPRAISAL PROCEDURE IN BHEL, BHOPAL

    2.1 The Workflow2.2 KRA (Key Result Areas)2.3 Part A1 2.4 Part A22.5 Part B2.6 Scores2.7 Screen Shots2.8 Performance Appraisal for Non-Executive

    2.8.1 Performance Appraisal System for Artesian/Workers

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.8.2 Performance Appraisal System For Supervisors(S4 and Above)

    Chapter 33.1 Performance Appraisal Questionnaire 3.2 Analysis of the Questionnaire3.3 Suggestions of BHEL Employees3.4 Conclusion.

    III. Employee Satisfaction Survey of BHEL.IV. New Suggested HR Policy for BHEL.

    Chapter 11.1 Introduction1.2 General Terms and Conditions1.3 Star 1 Employees

    1.3.1 Workers and Supervisor1.3.2 Executives1.3.3 Benefits Given for Star 1 Employee

    1.4 Star 2 Employees1.4.1 Workers and Supervisor1.4.2 Executives

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1.4.3 Benefits Given for Star 2 Employees

    1.5 Star 3 Employees1.5.1 Workers and Supervisor1.5.2 Executives1.5.3 Benefits Given for Star 3 Employees

    V Bibliography

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Declaration

    I Ankit Michael Samuel student of 3rd Sem from Department of Management of Maulana Azad National Institute of Technology, Bhopal. Hereby declare that I did my summer training in BHEL under HR Department and did the following projects:

    1 Analysis of Social Security & Labour Welfare Project in BHEL.

    2 Analysis of Performance Appraisal System in BHEL3 Employee Satisfaction Survey of BHEL.4 New Suggested HR Policy for BHEL.

    Yours SincerelyAnkit Michael Samuel3rd Sem MANIT (DOMS), Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    CertificateThis is a certify that Mr. Ankit Michael Samuel student of M.B.A. of MANIT, Bhopal has successfully completed summer Internship as a part of professional studies for the period of six weeks i.e. for 12/5/2011 to 22/6/2011 on the following topics:

    1 Analysis of Social Security & Labour Welfare Project in BHEL.

    2 Analysis of Performance Appraisal System in BHEL3 Employee Satisfaction Survey of BHEL.4 New Suggested HR Policy for BHEL.

    This project work has been carried out under the supervision and is of sufficiently high standard to warrant is presentation for the examination leading to degree of M.B.A. of MANIT university of Bhopal. I wish them a successful professional career.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Date: 22nd June 2011

    Shri Prajjal Adak Ankit Michael Samuel

    (Sr.Executive , BHEL) (MANIT, Bhopal)

    PrefacePersonnel Management occupies the prime position of all disciplines in Management which deals with many resources. These resources were expanded to include, among others, the following: Men, materials, machinery, money, etc

    Human beings play a dual role- a resource as well as a motive force for all other resources. They are also responsible for manipulating all other resources by way of developing, Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    utilizing, commanding and controlling them like materials, machines, money, information, land, infrastructure, etc. Human resources management (HRM) plays a decisive role in to manpower development: be it labors students, educated unemployed, supervisor or manager. Proper H.R.M. can develop right type of shop floor ethos and values which improve productivity and personal satisfaction of employees.

    BHEL is one of the of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas or the nine jewels. BHEL, Bhopal is the vast bank of knowledge. It is the perfect place to learn about the Management of the Manpower Resources. The knowledge gained here is going to be very helpful in making a successful professional career.

    I had taken the topic: Study on Social Security & Welfare Schemes in

    BHEL. Project on Performance Appraisal System in BHEL. Survey on Employee Satisfaction

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    New Suggested HR Policy

    The main purpose of this research is to know about the various Social Security & Welfare Schemes and Performance Appraisal System in BHEL. I had tried to put my best efforts to complete this task on the basis of skills achieved during studies in the institute and the knowledge provided by the respective employees of HRM Department in the BHEL, Bhopal. I had put my maximum effort to gain the accurate data from the BHEL, Bhopal. If any error or mistakes found in study and in collecting data kindly ignore.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Acknowledgement

    The successful completion of our project would have been a dream, devoid of the worthwhile help and ample cooperation of various people, who are expert in their respective fields. I express my gratitude to the Personnel Department of BHEL, Bhopal for giving me an opportunity to carry out this project in their organization.

    The inception of the whole process started with, Sh. K.K.Nair (AGM,HRM),his earnest efforts, which motivated us to a great deal. So, I express my deep sense of gratitude toward his innovative ideas.

    My project in charge Sh. Prajjal Adak, a man of simplicity and sincerity, whose enthusiasm toward my project provoked me throughout to commit my best efforts and achieve the Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    desired results. Who always showed and directed me towards right path. My commitment to the project is a result of patience, hard work, and dedication as inspired by him. I put deep benevolence and gratitude to Sh.Prajjal Adak.

    I would also like to thanks Sh. M.Isadore(DGM), Sh. Nisar Haidar(DGM), Smt. Surekha Banchhor(Manager), Sh.Amol Choubey(Executive),Sh. K.R Divya(Dy.Officer) for being the guiding and encouraging figures all through the duration of this project. Without their cheering and Invaluable insight into this project, the project work would not have been accomplished.

    At last, but not the least, it is really a proud privilege for us to express our deepest sense of gratitude and external gratefulness to our esteemed faculty members, family members & friends who provided proper guidance for the project work and woke enthusiasm for the topic.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Date: 18 June 2011

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Human Resource Management

    1.1 IntroductionHuman resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.] The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations.

    In simple words, HRM means employing people, developing their capacities, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

    1.2 HRM StrategyAn HRM strategy pertains to the means as to how to implement the specific functions of Human Resource Management. An organization's HR function may possess recruitment and selection policies, disciplinary procedures, reward/recognition policies, an HR plan, or learning and development policies, however all of these functional areas of HRM need to be aligned and correlated, in order to correspond with the overall business strategy. An HRM strategy thus is an

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    overall plan, concerning the implementation of specific HRM functional areas.

    An HRM strategy typically consists of the following factors:-

    "Best fit" and "best practice" - meaning that there is correlation between the HRM strategy and the overall corporate strategy. As HRM as a field seeks to manage human resources in order to achieve properly organizational goals, an organization's HRM strategy seeks to accomplish such management by applying a firm's personnel needs with the goals/objectives of the organisation. As an example, a firm selling cars could have a corporate strategy of increasing car sales by 10% over a five year period.

    Accordingly, the HRM strategy would seek to facilitate how exactly to manage personnel in order to achieve the 10% figure. Specific HRM functions, such as recruitment and selection, reward/recognition, an HR plan, or learning and development policies, would be tailored to achieve the corporate objectives.

    Close co-operation (at least in theory) between HR and the top/senior management, in the development of the corporate strategy. Theoretically, a senior HR representative should be present when an organization's corporate objectives are devised. This is so, since it is a firm's personnel who actually construct a good, or provide a service. The personnel's proper management is vital in the firm being successful, or even existing as a going

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    concern. Thus, HR can be seen as one of the critical departments within the functional area of an organization.

    Continual monitoring of the strategy, via employee feedback, surveys, etc.

    The implementation of an HR strategy is not always required, and may depend on a number of factors, namely the size of the firm, the organizational culture within the firm or the industry that the firm operates in and also the people in the firm.

    An HRM strategy can be divided, in general, into two facets - the people strategy and the HR functional strategy. The people strategy pertains to the point listed in the first paragraph, namely the careful correlation of HRM policies/actions to attain the goals laid down in the corporate strategy. The HR functional strategy relates to the policies employed within the HR functional area itself, regarding the management of persons internal to it, to ensure its own departmental goals are met.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1.3 Functions of HRMThe Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding the staffing needs of an organization and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees haveand are aware ofpersonnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.

    Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g., career development, training, organization development, etc.

    There is a long-standing argument about where HR-related functions should be organized into large organizations, e.g., "should HR be in the Organization Development department or the other way around?"Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    The HRM function and HRD profession have undergone major changes over the past 2030 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing an important role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1.4 Objectives of HRMThe objectives of Human Resource Management are:

    To help the organization reach its goals

    To employ the skills and abilities of the workforce efficiently

    To increase to the fullest the employees job satisfaction and self actualization.

    To develop and maintain quality of work life

    To communicate HR policies to all employees

    To be ethically and socially responsive to the needs of society

    To provide the organization with well trained and well motivated employees

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Profile of the Organization

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1 Company HistoryBharat Heavy Electricals Limited (BHEL) (BSE: 500103, NSE: BHEL) is one of the oldest and largest state-owned engineering and manufacturing enterprise in India in the energy-related and infrastructure sector which includes Power, Railways, Transmission and Distribution, Oil and Gas sectors and many more. It is the 12th largest power equipment manufacturer in the world. BHEL was established more than 50 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. 74% of the total power generated in India is produced by equipment manufactured by BHEL.

    It is one of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas or 'the nine jewels.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.2 Manufacturing Units of BHELMain Manufacturing Facilities

    Bhopal (Madhya Pradesh) Bharat Heavy Electrical Limited, Ranipur , Haridwar

    (Uttarakhand) [10]

    Bharat Heavy Electricals Limited, Ramachandrapuram, Hyderabad (Andhra Pradesh)

    Jhansi (Uttar Pradesh) High Pressure Boiler Plant and Seamless Steel Tube Plant,

    Tiruchirapalli(Tamil Nadu) [11]

    Boiler Auxiliaries Plant, Ranipet (Tamil Nadu) Electronics Division and Electro Porcelain Division,

    Bangalore (Karnataka) Jagdishpur (Uttar Pradesh) Rudrapur (Uttrakhand) Industrial Valves Plant, Goindwal (Punjab) Bharat Heavy Plates and Vessels Limited (Vizag)

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.3 Introduction to BHEL Bhopal

    Heavy Electrical Plant, Bhopal is the mother plant of Bharat Heavy Electricals Limited, the largest engineering and manufacturing enterprise in India in the energy-related and infrastructure sector, today. It is located at about 7 kms. from Bhopal Railway station, about 5 kms. from Habibganj Railway station and about 18 kms. From Raja Bhoj Airport. With technical assistance from Associated Electricals (India) Ltd., a UK based company, it came into existence on 29th of August, 1956. Pt. Jawaharlal Nehru, first Prime minister of India dedicated this plant to the nation on 6th of November, 1960. BHEL, Bhopal with state-of-the-art facilities, manufactures wide range of electrical equipments. Its product range includes Hydro, Steam, Marine & Nuclear Turbines, Heat Exchangers, Hydro & Turbo Generators, Transformers, Switchgears, Control gears, Transportation Equipment, Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Capacitors, Bushings, Electrical Motors, Rectifiers, Oil Drilling Rig Equipments and Diesel Generating sets.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    BHEL, Bhopal certified to ISO: 9001, ISO 14001 and OHSAS 18001, is moving towards excellence by adopting TQM as per EFQM / CII model of Business Excellence. Heat Exchanger Division is accredited with ASME U Stamp. With the slogan of Kadam kadam milana hai, grahak safal banana hai, it is committed to the customers. BHEL Bhopal has its own Laboratories for material testing and instrument calibration which are accredited with ISO 17025 by NABL. The Hydro Laboratory, Ultra High Voltage laboratory and Centre for Electric Transportation are the only laboratories of it are in this part of the world.

    BHEL Bhopal's strength is its employees. The company continuously invests in Human Resources and pays utmost attention to their needs. The plant's Township, well known for its greenery is spread over an area of around 20 sq kms. and provides all facilities to the residents like, parks, community halls, library, shopping centers, banks, post offices etc. Besides, free health services are extended to all the employees through 350 bedded (inclusive of 50 floating beds) Kasturba Hospital and chain of dispensaries.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.4 BHEL, a candidate for Maharatna Company

    For getting Maharatna status, a company needs to have a three-year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore. It should also be a listed firm.

    "It (to accord Maharatna status to BHEL) is being examined and will be done shortly. BHEL is likely to fulfill that criteria soon," Patel added.

    BHEL's turnover was Rs 33,173.34 crore in the fiscal 2009-10. However, the company's annual average net profit was Rs 3,433 crore during the last three years.

    Its shares were trading at Rs 2192.5, down 0.05 per cent from the last close at the Bombay Stock Exchange.

    Maharatna scheme was announced by the government in December 2009 to give more operational freedom to the top-performing PSUs.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    When that several PSUs lack the required number of independent directors on their board, Patel said the positions would be filled up soon.

    "Many PSUs have independent director vacancies. The independent director position has to be fulfilled at the earliest and Department of Public Enterprises will make sure that all the position have eminent people," he added.

    As per the Clause 49 of the listing agreement between companies and stock exchanges requires companies to have independent directors in half of the board positions.

    Some large listed state-run companies do not have the required number of independent directors.

    This has impeded the government's effort to divest part of its stake in public sector firms, forcing it to name retired bureaucrats as independent directors.

    Out of 47 listed government companies, the boards of 17 companies like Indian Oil, BHEL and SAIL do not have the required number of independent directors," a recent government report had said.

    There are 246 Central Public Sector Enterprises in the country, as on March 2009.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    BHEL Human Resource Departments

    3.1 IntroductionHuman resource is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR".

    3.2 Description of HR DepartmentsThe Human Resource Department of BHEL , Bhopal is broadly divide into two Category :-

    I.HRDC

    II.HRM

    I.HRDC (Human Resource Development Centre) :-

    The principal objective of training and development division in BHEL is to make sure the availability of a skilled and willing

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    workforce to an organization. The training system in BHEL is to create a smarter workforce and yield the best results.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Human Resource Development Centre in BHEL performs the following activities:-

    1. Apprenticeship Training

    2. Faculty Work

    3. Vocational Training

    4. Induction Training

    5. Developmental Training for employees.

    II.HRM (Human Resource Management):-

    HRM covers the various departments, performing the different functions, which are as follows:-

    1.Establishment

    2.Industrial Relations & Welfare

    3.Human Resource Systems Development

    4.Law

    5.Administration

    6.Others

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    6.a Policy

    6.b Single Window Cell

    6.c Rajbhasha

    6.d Contract Labour Cell

    1. Establishment

    All the Establishment Matters comes under this department . It deals with a wide range of activities starting from induction of an employee till retirement. It includes record keeping of all the employees & its verification (as per required). For Example; Sanction of leave , bus pass , higher qualification matters , passport , promotions , transfers , social security forms and their nominations , loans etc.

    2. Industrial Relations & Welfare

    Industrial Relations is a multidisciplinary field that studies the employment relationship. It is a bridge between workers and top management. It focuses on labour relationship which Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    includes resolving the grievances of the workers. Contract Labour Administration and Industrial Dispute Cases also comes under it.

    BHEL has various labour unions which are actively giving shape to IR.The main Trade Unions are:-

    1.HMS(Hind Majdoor Sangh)

    2.INTUC(Indian National Trade Union Congress)

    3.KTU(Karamchari Trade Union)

    4.CITU

    5.AITUC

    During all these years, Indian National Trade Union Congress (INTUC) had the monopoly over four other trade unions in the plant.

    3. Human Resource Systems Development

    It consist of all the functions like:-

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    a. Staffing (MPP, Recruitment , Placement & Exits)

    Understanding & Over staffing reduces the competitive efficiency of the business. Planning staff levels requires an assessment of present and future needs of the organization be compared with present resource and future predicted resources which is accomplished by Man Power Planning.

    Recruitments is an essential & indispensable part of HR which deals with hiring process, which may be from outside or inside the company. Internally through transfers, promotions etc. , and externally through campus selection , written examinations and interviews etc.

    b. Performance Management

    BHEL being a very big & widely spread organization which has large number of manpower. Thus to appraise its performance need a comprehensive & exhaustive method.

    Performance appraisal in BHEL is done in 2 ways:-

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Supervisors and Workmen: - ACR (Annual Confidential Report)

    Executives: - e Map

    c. New Business Initiative

    BHEL have a separate department for new Business technique which performs various functions like designing SAP , ERP , e-Map , PCMM etc, exclusively for BHEL.

    d. Rewards & Recognition

    e. Career Planning

    f. Succession Planning

    g. Competency Management

    h. Compensation Management

    i. Communication Systems

    4. Law

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    This Department performs all the legal activities of the BHEL. It covers:-

    Litigation Regarding Service Matters

    Arbitration

    Court Cases

    Legal Advices

    Contract Labour Matters

    5. Administration

    For the welfare of the employees the many other facilities were provided by the BHEL which is administered very efficiently. They are as follows:-

    Township Administration

    Office Administration

    Hospital Administration

    Sports Administration

    Transport

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    6. Others

    There were so many other departments of HR which are working for the benefits of the employees. It facilitates the information to the employees, which indirectly encourage the employees to perform their best. They are as follows:-

    6. a. Policy

    Policy matters include check on various implementation processes. It deals with endorsing & distribution of Corporate HR circulars etc. Many concepts like e-Map, competency mapping , HR Software packages (SAP , ERP etc) are its concern areas.

    6. b. Single Window Cell

    This department facilitates the convenience of work dealt by an employee who is unable to go to different cell to process his/her need. So, all the work can be done through a single window or cell.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    6. c. Rajbhasha

    Hindi speaking enables proper communication & flow of work within an organization, where majority of people are Hindi speaking. BHEL being a governmental organization needs to do its entire works (as far as possible) in Hindi.

    6. d. Contract Labour Cell

    BHEL employee structure comprises many workers who are not the employees of it. They are working on contract basis. A large chunk of work is done by them thus they are very crucial to the organization. It can be of two types:-

    a) Job Contract- Registered Societies of contract labour supply this kind of labours.

    b) Work Contract These are brought on temporary basis on fixed priced order value by the contractor.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    3.3 Functions of Some HR Departments

    1.Recruitment Department

    Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.

    The stages in recruitment include sourcing candidates by advertising or other methods, screening potential candidates using tests and/or interviews, selecting candidates based on the results of the tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role effectively.

    2.Manpower Planning Department

    Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1. Analysing the current manpower inventory 2. Making future manpower forecasts 3. Developing employment programmes 4. Design training programmes

    3.Promotion Department

    A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. Promotion may be an employee's reward for good performance i.e. positive appraisal.

    Before a company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and tests and giving them training or on-the-job experience.

    A promotion can involve advancement in terms of designation, salary and benefits, and in some organizations the type of job activities may change a great deal. The opposite of a promotion is a demotion.

    4.Transfer Department

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    A transfer is a lateral move to a position in the same classified pay range (classified position) or to a position with comparable duties and responsibilities (non-classified positions).

    5.Policy Department

    A policy is typically described as a principle or rule to guide decisions and achieve rational outcome(s). The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol.

    Whereas a policy will contain the 'what' and the 'why', procedures or protocols contain the 'what', the 'how', the 'where', and the 'when'. Policies are generally adopted by the Board of or senior governance body within an organization where as procedures or protocols would be developed and adopted by senior executive officers.

    A Policy can be considered as a "Statement of Intent" or a "Commitment". For that reason at least, we can be held accountable for our "Policy"

    3.4 Levels of Employees

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Executive Category:E1 Engineer/Executive Trainee

    E1A Engineer/Executive /Officer

    E2 Sr.Engineer/Executive /Officer

    E3 Deputy Manager

    E4 Manager

    E5 Sr.Manager

    E6 DGM

    E6A Sr.DGM

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    E7 AGM

    E8 GM

    E9 Executive Director

    Supervisors Category:S1 Assistant Engineer Grade 2

    S2 Assistant Engineer Grade 1

    S3 Deputy Engineer

    S4 Additional Engineer Grade 2

    S5 Additional Engineer Grade 1

    S6 Sr.Additional Engineer Grade 2

    S7 Sr.Additional Engineer Grade 1

    Workers Category:A1/B1 Unskilled Labours/Attendant

    A2/B2 Semi-Skilled Labours

    A3/B3 Artisan Grade 4

    A4/B4 Artisan Grade 3

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    A5/B5 Artisan Grade 2

    A6/B6 Artisan Grade 1

    A7/B7 Technician

    A8/B8 Sr. Technician

    A9/B9 Master Technician

    A10/B10 General Technician

    A11/B11 Chief Technician

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    3.5 Organizational Hierarchy

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    3.6 Human Resource Practices in BHEL1. Ensuring a Safe, Healthy and Happy Workplace .In BHEL there is a system to capture the needs of employees through Employee Perception Surveys on environmental factors which are followed up by in-depth analysis, focused group discussions and interactions with workforce so as to improve their work environment. A full fledged WEX department functions along with HR department to bring about these changes. They have very recently introduced ESS which online captures such requirements of employees on a Companywide bases. BHEL has embarked upon a massive modernization of its offices to suit the new age style of functioning

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2. Creating an atmosphere of openness and knowledge sharing- creative communication

    To promote transparency BHEL has incorporated MECOM (Management Employee Communication Meeting), at its Bhopal unit. This plan entitles each worker to a presentation which facilitates open communication among workers and the senior management. This unique practice welcomes free criticism, appreciation, complaints and feedback from one and all.

    BHEL intends to bring about a revolutionary change through the incorporation of its new concept MECOM. BHELs initiative is a step towards understanding the organization at every level of management. It identifies the importance of its people and how people are its greatest assets which will finally take the organization to greater heights. Through this initiative, it seeks to strengthen the character of disclosure and transparency so that there is an unrestricted flow of information, which will create a conducive atmosphere for employee as well as organizational growth.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    There are ship councils, canteen committee, township committee etc to promote sharing and soliciting employees ideas. There are specifically dedicated knowledge management portals, a full scheme on developing knowledge workers, a Mentoring scheme , a multi-skilling scheme; where sharing is done on a very continuous basis.

    3. Developing an atmosphere of Performance linked payments

    BHEL Reward performance through a very well documented Reward Scheme that rewards both individual and group performance and certainly there are no rewards below a certain level of performance. They have introduced a PRP scheme based on which the employees are paid bonus linked to their performance. There are many other schemes like IMPRESS and an IPR (Patent) scheme that reward excellence in performance.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    4. Fair Evaluation System for Employees

    BHEL e-MAP system ensures all the parameters of fair Evaluation. All executives and supervisors are mapped through their balanced score cards. The measurement is not only of performance but also that of quality of performance. We at BHEL tend to measure behavioral traits too for identifying futures leaders and specialists. The whole process provides effective feedback leading to discussions and improvements. There have been continuous improvisations in this scheme for better and just evaluation.

    5. Getting the right person in right time

    BHEL has been the first PSU to introduce an online system of recruitment even at artisan level. This has ensured a very quick yet transparent system of recruitment, they announce the results the next day of written test or interview and today this stand as a bench mark process amongst PSUs. They have gone into exercises of identifying the core and non core areas for recruitment, effective redeployment of existing manpower through retraining. They have retainership scheme for

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    retaining the expert manpower much needed in the organization. Thus in BHEL we have been exploring all the resources to get the best person in time and for the right job.

    6. Training and development:

    BHEL have invested hugely here. They have specially designed focused training programmes at executive, supervisor and worker level inductees. A full fledged system is in place to identify the training needs of existing employees. Multi-skilling with a host of behavioral training programmes forms the back bone of our training objectives. BHEL mentoring scheme takes special care of their endeavors like LEAN, DTC , 6 sigma, 5S have been introduced through extensive training

    6. Compensation and benefits :

    BHEL have been extremely good when it comes to pay packages and benefits. The recent wage revision has led to a very handsome increase in salary of workers. Insurance coverage, death relief, medical care , township facilities, parks, schools, colleges, community centers, holiday homes,

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    education fees, libraries, various allowances, places of worship, extensive sports club, swimming pool, Yoga Centre, cooperative societies etc. are all various benefits that ensure at BHEL.

    7. A culture of Continuous Improvement The PCMM model and SAP for HR

    BHEL have introduced a model called PCMM (People Capability Maturity model) for continuous improvement of HR practices. The model is based CMM model practiced in software industry and BHEL is first PSU to introduce this model for HR practices. This shall hels in establishing the best form each HR practice and that too uniformly across the organization. BHEL have introduced SAP for HR function and HR deliverables are now sourced through SAP only.

    8. Care

    Swasth Karamchari Yojna

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Gantt Chart for Social Security Welfare System of BHEL

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Gantt Chart for Performance Appraisal Project

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    I. Study on Social Security & Welfare Schemes in BHEL

    1.1 Introduction

    Social Security is one of the fundamental needs of the day. Freedom and security against economic risk is the minimum that must be secured in under developed economies as early as possible.

    In the view of International labor organizations, Social Security is that security which a society furnishes through appropriate organization against certain risk to which its members are exposed.

    Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions. It is a collective name for those measures, which a society has provided to meet such contingencies .The earning power of the workers may be affected by sickness, maternity, invalidity, employment injury, Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    old age and death. It is not possible for workmen individually to make adequate provisions against these risks. Therefore, the benefits of social security are admissible to all.

    Some important schemes for the Social Security of the workers are as follows:-

    Group Saving Linked Insurance Scheme (GSLIS) Death Relief Fund (DRF) Employee Deposit Linked insurance (EDLI) Group Insurance Scheme (GIS) The payment of Gratuity Act, 1972 The employees family pension scheme Provident Fund

    1.2 Welfare

    Dictionary meaning of welfare is exemption from calamity or enjoyment of health or prosperity. In other words welfare means peoples health, happiness or comfort.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    According to international labor organization Workers welfare should be understood as meaning such services, facilities and demenities which may be established in, or invicinity of an undertaking to enable the persons employed there to perform their working healthy congenial surrounding and provides all voluntary acts by employer aimed at improvement and betterment of workers social moral and social economic and intellectual conditions.

    According to Royal Commission of labor The term welfare, as applied to the industrial worker, is one which most necessarily is elastic, bearing somewhat different interpretations in the degree of industrialization of workers.

    1.2.1 Welfare Schemes in BHEL

    In compliance with the provisions of the factories Act 1948, BHEL Bhopal has undertaken a number of welfare measures for the welfare of its employees and their family members. The various statutory & non statutory welfare measures are discussed as below:-Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1.2.1.1 Statutory welfare scheme

    1. Washing facilities: - Washing facilities like soap, cleaning powder are being provided for the workers at their work place.

    2. Facilities for storing: - In all the manufacturing blocks as well as in all annexes, the employees have been provided with cupboard/almirahs to keep their personal belongings.

    3. Facilities for sitting: - Workers have been provided with suitable sitting facilities while worker may find a pause to rest.

    4. First-aid & Ambulance room: - As on date 158 first-aid boxes have been provided to manufacturing blocks/annexes, canteens. These boxes are kept with employees having knowledge of first-aid procedures with

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    training n medical care being provided to them of and on . The contents of these boxes are periodically checked and filled in as and when necessary.

    5. Canteens: - there are 03 works canteen at present pulse one staff canteen catering to the needs of employees. Besides these, one canteen is functioning in Hospital for the patients. These canteens supply Meals, tea, coffee, snacks, and sweets. In works canteen No.3 special provision for women employees has been made for their meals, snacks etc.

    6. Crche: - Adjacent to works canteen No.3 there is provision for crche. Children up to the age of 6 years of the working mother are kept from 7.00 am to 5.00 pm. Provision is made for fruits, biscuits, milk, meals to these children. Presently about 30 children have been accommodated in the crche.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    7. Shelter, rest rooms and lunch rooms: - Both in works canteen and in staff canteen suitable arrangements have been made for workers who bring meals with them.

    8. Labour welfare Officers: - Under Human Resources Management Division 12 welfare offices and 16 labour welfare supervision are functioning to look after the welfare of employees.

    1.2.1.2 Non- Statutory Welfare Scheme:

    1. Educational facilities: - In BHEL Township there are four Hr. Sec. Schools functioning under BHEL Education Society. Two colleges and a nursing college are also functioning in the township.

    2. House accommodations: - All employees (100%) have been provided with residential accommodations. BHEL

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Bhopal has also allotted land to their employees who have constructed their own house.

    3. Medical facilities :- BHEL Bhopal has a well equipped Kasturba Hospital along with four peripheral dispensaries in each of its four townships plus one occupational health center in the factory premises; equipped with necessary health facilities & infrastructure. Employees and their dependents are given free medical treatment. A highly subsidized contributory health scheme exists for retired employees. Kasturba Hospital is a 400 bedded hospital with nearly 88 doctors and 91 nurses and with a staff of over 285 employees. Besides the regular employees numbering 8000+, Other beneficiaries include nearly 42000 dependents and 14000 retired employees. Some of the most sophisticated surgical procedures in the field of Cardiac and neurocare, complex orthopedic, operations like knee and hip surgeries are being done.

    4. Uniforms :- BHEL provides to all categories worker uniforms clothing along with safety shoes.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    5. Different Social/ Cultural Associations :- For the social and cultural activities of the residents of BHEL township,17 cultural associations like Malayalee Association, Tamil sangam, Bangla Sanskritik Parishad, etc. exist. Infrastructural support by way of accommodation, water, light is provided by BHEL.

    BHEL is having a number of clubs for their employees viz., for executive (BHEL SENIOR CLUB), for supervisor (ATA CLUB) and for workers (AGA CLUB). Yoga center are there where yogic exercise are being given by the trained teachers for the benefits of the employee and their family member.

    6. Parks: - 19 parks are being maintained in the township.

    7. Sports Activities: - To promote sports activities BHEL management has provided for one huge sports complex (including a sports stadium and golf course). Facilities for

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    almost all sports and games are provided (both indoor and out-door).A sports Authority has also been established to look after such facilities, inter-unit tournaments etc. This sports complex is NIS certified.

    8. Community Centers : BHEL has many community halls in BHEL township which provides following facilities:

    Library: Library / reading room where national/ local news are provided free of cost.

    Games: Both indoor and outdoor facilities are available for the benefits of employees and their family member. By charging very nominal; charges of Rs.2/- to RS.5/- pre person per game.

    Marriage hall: BHEL Township is providing the facilities of solemnizing the marriage of the sons/ daughters of their employees. This facility is available at very nominal charges.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    9. Public Grievance Cell: To redress the Grievances of the inhabitants of BHEL Township, Shopkeepers etc. a Public Grievance Cell is functioning at Town Administrative Office and HOD of the township heads this cell. The objective of this cell is to look into the grievances of the complainants and resolve amicable solutions.

    10. Tree Plantation: BHEL Bhopal is very conscious of its surroundings and environment. BHEL Town Ship and factory is well known for its greenery. Every year a large number of saplings are planted in the month of August. The plantation drive continues almost throughout the year. On an average, 15,000 saplings are planted every year.

    1.3 Statutory labor welfare facilities

    Statutory Facilities are those, which are provided by law. There are compulsory facilities. Every concern has to make Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    arrangement of such facilities so that worker can do the work without problem. These facilities are important for every organization for improving health and for providing safety to the worker. Some of the important health, welfare and safety provisions are given under factories act 1948. Some important facilities are:-

    Cleanliness Drinking Water Proper lighting Bath Rooms facility Medical facility Shelter , restroom and lunch rooms Washing facilities Crches Disposal of waste and effluents spittoons

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    1.4 Non Statutory labor welfare Facilities

    Non-statutory facilities are those facilities, which are not prescribed by law. These facilities are provided by the management to the workers for avoiding labour turnover and absenteeism and for giving maximum satisfaction & job security to them some of the non-Statutory facilities are as follow:

    Conveyance facility Education facility Housing facility Loan and advance facility House rent allowance (H.R.A) Leave travel allowance (L.T.A) Recreation facilities

    1.5 Objectives of the Study

    The main objectives of the study are as follows:-

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    a) To know about the Social security schemes and policies followed by the company.

    b) To know about the Welfare Schemes of the company.

    c) To gather the information about the structure of the schemes in BHEL.

    d) To gather the information about the process of implementation of the schemes in BHEL.

    e) To know about the rules and regulations followed by the company for various policies and schemes.

    f) To know about the effectiveness of the schemes for both the employees and the organization.

    2.1 Social Security Schemes in BHEL

    BHEL Bhopal has undertaken a number of Social security Schemes for the Security of its employees and their family members. In compliance with the provisions of the factories Act 1948, The workmens Compensation Act 1923, The employees Provident Fund Act, The payment of Gratuity Act and others. The various Social Security Schemes in BHEL are discussed as below:-Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.12 Group Saving Linked Insurance Scheme (GSLIS)2.1.13 Death Relief Fund (DRFS)2.1.14 Employee Deposit Linked insurance (EDLI)2.1.15 Group Insurance Scheme (GIS)2.1.16 Group Personnel Accident Policy(GPAP)2.1.17 Gratuity 2.1.18 The employees family pension scheme2.1.19 Provident Fund2.1.20 Earned Leave2.1.21 Retired Employees' Contributory Health Scheme2.1.22 Act: The workmens Compensation Act, 1923

    2.1.1 Group Saving Linked Insurance Scheme

    The BHEL Group Savings Linked Insurance Scheme which effect from April 1987 provides an insurance cover for all the regular employees and promotes savings to provide financial assistance to the employees / beneficiaries at the time of retirement or insurance cover in the event of death while in service. This scheme is applicable to all the full time / regular employees between the age of 18 and 60 years borne on the

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    pay rolls of the Company and drawing pay in the salary grades of the Company.

    2.1.1.1 Amount Insured

    The assurance which shall be effected on the life of each member is for the sums assured as under:

    Category - Salary Grade wise

    Sum Assured (Rs.)

    AI/BI to A VI/B VI grades, S-0, all temporary employees recruited against regular vacancies either on daily rated wages or on consolidated wages .

    10,000/-

    AVII/BVII to AXI/BXI, SA1/SB1 to SA3/SB3, Jr. Executives

    20,000/-

    E1 to E4 and other 40,000/-

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    equivalent gradesE5 and above. 80,000/-

    2.1.1.2 Premium Per Month. (In Rs.)

    Sum Assured

    Monthly Premium

    Risk Portion

    Savings Portion

    10,000/- 13.50 5.00 8.5020,000/- 27.00 10.00 17.0040,000/- 54.00 20.00 34.0080,000/- 108.00 40.00 68.00

    The Risk Portion will be borne by the Company and the Savings portion will be contributed by the employee.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.2 Death Relief Fund (DRFS)

    The BHEL Employees Death Relief Fund Scheme / Death Relief Scheme give monetary assistance to the families of the members who die while in service of the company. Scheme covers all categories of employees who have voluntarily enrolled themselves as members of the scheme. The scheme is administered by a committee formed by respective unit management.

    Category Contribution amount per employee

    All Employees Rs.5/per death

    All Employees have to pay Rs.5/- for each death during the corresponding month. The amount is deducted from the Salary of the employee every month.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.3 Employee Deposit Linked insurance (EDLI)

    BHEL Employees Deposit Linked Insurance Scheme is a Group Insurance scheme operating with Life Insurance Corporation of India. This scheme is in lieu of the statutory EDLI scheme 1976 which is applicable to all the Provident Fund subscribers. The scheme is applicable to all the full time regular employees between the age of 18 and 60 years on the pay rolls of the company and drawing pay in the salary grades of the Company.

    2.1.3.1 Amount InsuredThis policy confers a uniform cover of Rs. 1,32,000/- to all categories of employees of the company and is applicable to all employees of the company covered under Group Insurance Scheme.

    Category Assured AmountAll Employees Rs.1.32,000

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.4 Group Insurance Scheme (GIS)

    The BHEL Employees Group Insurance Scheme one year renewal term assurance plan presently with Life Insurance Corporation of India provides graded insurance cover. The scheme is applicable to all the full time regular employees between the age of 18 and 60 years on the pay rolls of the company and drawing pay in the salary grades of the Company.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.4.1 Amount Insured

    The assurance which shall be effected on the life of each member wef 1/11/2007 is as follows:

    Grade

    Category and Salary Grade Sum Assured (Rs.)

    A AI/BI to AVI/BVI grades, S-0, all temporary employees recruited against regular vacancies either on daily rated wages or on consolidated wages.

    2 Lakhs

    B AVII/BVII to AXI/BXI & SAI/SBI to SAIII/SBIII, Jr. Executives

    4 Lakhs

    C E1 to E4 and other equivalent Grades.

    7 Lakhs

    D E5 and above 10 Lakhs

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.5 Group Personnel Accident Policy (GPAP)

    The scheme is applicable to all the full time regular employees between the age of 18 and 60 years on the pay rolls of the company and drawing pay in the salary grades of the Company.

    This Policy is meant to cover accidentally caused body injury due to external reasons except natural deaths, death due to disease and suicide. The term Accident has a wide connotation. The death/injury need not occur only in connection with an official duty in order to be eligible for compensation. The cover will be in force anywhere in the world.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    This policy started from the year 2002 and currently it is in tie up with the ICICI LOMBARD.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.5.1 ICICI LOMBARD

    These tie ups changes every year and the span of the policy is from July to June. In the Previous year it is tied up with TATA AIG.

    During the financial year (July2101-June2011) company paid a premium of 72 lakhs Rs. for 46224 employees (all employees of BHEL.)

    2.1.5.1.1 The compensation available is as follows:

    1.Full sum insured in case of death due to accident.2.Prescribed percentage of sum insured in case of loss of

    limbs resulting in partial or total disablement.3.Cover for total temporary disablement will covers inability

    to attend office on account of all types of injuries on the advice of the Doctor @ 1%(One percent) of Sum Insured (limited to Rs 5000.00) per week for absence in excess of

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    eight weeks. Prorata payment will be made for part of the week, if applicable.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.5.1.2 The coverage for employees posted at sites and other than at sites is as follows (Rs.in lakhs)Sl.No.

    Category

    Other than site employees

    Site Category

    A B C

    1

    Executives including Executive Trainees / Supervisors in Executive Grades

    5.00 10.00 12.0015.00

    2Supervisors & Workers in Supervisor Grades

    4.00 8.00 10.0012.00

    3 Supervisor trainees, Employees in Worker Grades, temporary employees recruited against regular vacancies either on daily rated

    3.00 6.00 8.00 10.00

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    wages or on consolidated wages

    All foreign sites will be treated as Category C sites.

    2.1.5.1.3 Process

    STEP 1- Intimation of the accident of the employees is given to the agency by the company.

    STEP 2- Filling of claim form personal accident insurance which contain:-

    Incident report

    FIR(accident cause outside of campus and death whether inside or outside of campus)

    Leave certificate

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Sickness certificate

    Treatment papers

    Discharge certificate

    In case of death:

    FIR

    Death certificate

    Post mortem report

    STEP 3- This filled forms is sent to the agency for cross checking .Agency have their own medical officer who cross check the disability percentage in case of injury.

    STEP 4- If everything is satisfied then the company pays the capital insured amount within 3-4 month.

    2.1.6 Gratuity Gratuity means a small sum of money given to a person as a reward for good service. This rule recognizes the employees Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    service by the management. It is provided only when an employee complete minimum of 5 years of service in the company & in continuation. Gratuity thus mainly depends on the number of years in services & monthly wages.

    2.1.6.1 Gratuity Calculation:

    Gratuity = [(Basic +DA+ Service Wt. )* Length of Service * 15 ] 26

    Gratuity is received only when an employee willingly resigns or retires. Its maximum limit is up to Rs.10,00,000/- (lumpsum amount).

    The ceiling limit of gratuity amount payable in case of death of an employee are as follows:

    A. during the first year of service

    2 months' emoluments

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    B. after one year but before 5 years of

    service

    6 months' emoluments

    C. after completion of 5 years but before 20

    years of service

    12 months' emoluments

    D. service of

    20 years

    Half a month's more emoluments for completed half year of qualifying

    service subject to a maximum of 33 times the emoluments provided the amount of death gratuity shall in no

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    case exceed Rs.3,50,000/-.

    2.1.7 The Employees Family Pension Scheme

    Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial principles for ensuring long term financial sustenance.

    In BHEL Employees' Pension Scheme-95 is followed. Here the pension schemes include monetary benefits of Rs.1500-2000 per month as per the grade of the employee.

    8.33% of pension is given out of 12% and rest of the amount is transferred to the Provident Fund Accounts of that employee.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.7.1 Calculations:

    Let us take an example of employee having salary of Rs.1000/- per month then,

    Employee contribution of 12% equals 120

    Employer contribution of 12% equals 120

    Now 8.33% of 1000 equals 83

    And, 120-83 = 37 So,

    Fund For Pension

    Rs. 83/- (Employer Contribution)

    Fund For PF(Provident Fund)

    37 + 120 = Rs. 157/-

    where 37 is employer & 120 is employee contribution.

    NOTE: Pension doesnt exceed Rs.6500/-

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    For Example:-

    If employee salary :- Rs. 20,000/- p.m.

    Employee & Employer contribution of 12% is :- Rs.2400/-

    8.33% of 20,000 is 1666 but it doesnt exceed 6500 so 541 goes to the pension fund

    i.e. Pension Fund = Rs. 541/-

    Fund For PF(Provident Fund)

    2400-541 = 1859

    1859 + 2400 = Rs. 4259/-

    Where 1859 is employer & 2400 is employee contribution.

    2.1.7.2 Benefits

    Newly introduced Employees' Pension Scheme-95 provides for following benefit package:

    1. Pension for life to the member, on superannuation/retirement and invalidation.

    2. To the members of the family upon death of the member: Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    a. Pension to Widow/Widower for life or till re-marriage.

    b. To children/orphan, two at a time additionally upto 25 years of age simultaneously with widow/widower pension.

    c. Children/orphan with total and permanent disability shall be entitled to payment of children pension or orphan pension as the case may be irrespective of age and number of children in the family.

    d. Facility for payment of pension to nominee in the event of member who is unmarried or without any eligible family member to receive pension, and

    e. Facility for payment of pension to dependent father/mother in the event the member dies leaving behind no eligible family members and no nomination by such deceased member exists.

    2.1.8 Provident Fund

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    It is that fund (pension fund) in which a monthly sum is set aside for an old age pension. Employee Provident fund is that amount of money which is deposited by every employee in the company during the services, so that invested amount could be withdrawn after retirement. Thus it is a very crucial part of each & every employees salary.

    CPF which is Company Provident fund is the fund where money of employee is invested every month & thus it goes to the companies account. Thus company also gives some amount of money from its own side which is equivalent amount as that of an employee contribution. Thus PF is a joint investment of both the company & its employees.

    2.1.8.1 Provident Fund Calculations

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Provident Fund = [12%(Basic salary + DA)per month] + [Equivalent amount by the company]

    Interest on PF is also given which is in the range of 8 to 8.5% currently. Provisions like withdrawals can be made use of this scheme, like:

    1. Temporary loan marriage of dependents2. Permanent withdrawal own marriage, marriage of

    children , construction or purchase of house & other properties .

    This withdrawal can be made only once.

    Before 1 year of retirement, 90% of total PF amount can be withdrawn. Thus in case of any need ,one can be safe & secure with the money of PF. PF is a compulsion and is provided to all employees.

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.9 Earned Leave

    Earned Leave is defined by the BHEL , as it is related to the number of years of service put in by the employees as under:-

    No. of complete years of service

    Entitlement of earned leave per annum(days)

    Upto 5 yr 22Above 5 upto 10 yr 24Above 10 upto 15 yr 26Above 15 upto 20 yr 28Above 20 yr 30

    On retirement, the remaining earned leave (taken in account of full service years) of the employee is paid by the last basic salary. If the employee wants to withdraw the money of Earned Leave during the period of the service than company pays for the Earned Leave as :-

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    Earned leave = (Basic of one day ) * Number of Earned Leave employees required ( remaining earned leaves from previous year)

    On Retirement the earned leave is paid as:-

    Earned leave = (Basic of one day) * (Total number of remaining earned leave in employees service)

    Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd June, 2011

    (Maulana Azad National Institute of Technology, Bhopal)

  • Human Resource Department Bharat Heavy Electricals Limited, Bhopal

    2.1.10 Retired Employees' Contributory Health Scheme

    This scheme shall be known as 'BHEL Retired Employees' Contributory Health Scheme' effective from 1st Nov., 1985. The scheme is intended to extend medical cover to the retired BHEL employee and his/her spouse and spouse of an employee who dies while in service. This scheme is applied to all the categories of BHEL retired / deceased employees i.e , Regular employees who retired from service on attaining the age of superannuation after rendering a minimum of 5 years continuous service in the Company.

    A nominal amount has to pay by the employee and for his/her spouse per year and he/she is eligible to get all the medical facilities , treatments , medicines without any charge.

    2.1.10.1 Sample Forms (to be filled by employees)

    Below are the sample forms to be filled by the employees for Social Security. Employees have to filled up these forms Ankit Michael Samuel, HR Trainee, Batch: 12th May, 2011 to 22nd Ju