HR Practices with emphasis on HRP at Mazgon Docks Ltd (MDL)

Compiled by Miss Anushree Edbor

About the Company Shipbuilding (which encompasses the shipyards, the marine equipment

manufacturers and a large number of service and knowledge providers) is an important and strategic industry in a number of countries around the world. This importance stems from:

• The large number of trade persons required directly by the shipyard and also by the supporting industries such as steel mills and engine manufacturers.

• A nation's need to manufacture and repair its own Navy vessels that support its primary industries.

• Mazagon Dock Limited, Mumbai, an ISO 9001:2000 Company is one of the leading shipbuilding and offshore fabrication yards in India.

• The Yard was established in the 18th century, and over the 200 odd eventful years, has earned a reputation for quality work and established a tradition of skilled and resourceful service to the shipping world in general and the Indian Navy, Coast Guard & ONGC in particular.

• In its varied history, MDL passed through various ownerships like the P&O lines and the British India Steam Navigation Company.

• It was incorporated as a Public Limited Company in 1934.

• After its takeover by the Government in 1960, Mazagon Dock grew rapidly to become the premier war-shipbuilding yard in India, producing sophisticated warships for the Navy and offshore structures for the ONGC.

• It has grown from a single unit, small ship repair company, into a multi-unit and multi-product

company, with significant rise in production, use of modern technology and sophistication of products.

• The company’s current portfolio of designs spans a wide range of products for both domestic and overseas clients.

MISSION STATEMENT

Mazagaon Dock Limited is committed to continue as being the Leading Shipyard of the country engaged in building technologically intensive warships, submarines and heavy engineering structures conforming to international standards.

EMPLOYEES

• To upgrade the quality of human resources and strengthen the technical and managerial competence for growth.

• To achieve higher level of safety standards. • To restructure the manpower by

rationalization • To achieve continuous increase in value

addition per employee.

Distribution of Manpower

GGMGM

AGMDGMCM

MANAGERDMAM

SENIOR ENGINEERJUNIOR ENGINEER

PROBATIONARY OFFICERS

2133166

1412838577560320

TOTAL 777

MANAGERIAL STAFF

UNSKILLEDSEMI-SKILLED

SKILLEDCLERICALSUB-STAFF

387863

45541045124

TOTAL 6973

OPERATIVE STAFF: SKILL WISE DISTRIBUTION

Hired last fiscal year

• 900 workmen on temporary basis were hired last fiscal year.

• The workmen are on contract basis and their contracts will be renewed after 2 years taking certain factors into consideration

• 550 officers on permanent basis were hired in the last fiscal year

ForecastDemand forecast for next fiscal year:Taking certain factors into consideration the Demand forecast for the next

fiscal year lies between 1200 – 1400.

Factors for demand forecast w.r.t Man power planning• Number of retirements in the particular year• Age of the people currently working• Contracts taken up by MDL for the next ten years

Supply forecastThis is done with the help of • Staffing tables• Skill Inventories• Government policies .eg. Workmen should be taken on Contract basis

After Identifying GapIncase of Shortage:

Scenario:

Shortage of painters has been indentified by MDL and MDL has also identified welders sitting on the bench

Action:

The welders on bench are given quick and efficient training in the skills of painting, they are then allotted the respective jobs to be done in the paint shop

Incase of surplus• MDL being a government organization, no action is taken in case of surplus, there

is job security.• VRS plans may be offered, but currently no such actions are visible

Note: There is no organization specific man power planning model in MDL, but there are talks of developing one soon

If shortage cannot be handled internally then it is recorded in the following manner (this is current information pertaining to shortage at certain posts)important links.docx

Groups Of Employees

OFFICERSRecruitment

On All India Level

Group ASr. Engineer to

G.G.M

Group BJr. Engineers

(Internal Recruitment Process)

OPERATIVESRecruitment

On Maharashtra State Level

Group CClerical Staff

& Charge-hands

Group DOperatives

Recruitment model specific to MDL

1. The recruitment process for Officers Level is conducted throughout India whereas Operatives Level is conducted locally on State Level Basis.

2. Reservations to be maintained for Officer Level vacancies are as follows:-• SC – 15%• ST – 7.5%• OBC – 27%• Others Categories – 0.5%

3. Reservations to be maintained for Operatives Level vacancies are as follows:-• SC – 10%• ST – 9%• OBC – 27%• Others Categories – 4%

4. In any case, the reservations should not exceed 50% of the available vacancies.

5. For any vacancies of any department, following procedure is followed:-

• GM (Ship-Building Div) will forward Requisition to Director (Shipbuilding).

• Director (Shipbuilding) will forward Requisition to Director (Corporate Personnel & Planning).

• Director (CP & P) will forward Requisition to Chairman and Managing Director (CMD) for approval.

• If CMD thinks fit to recruit more employees, forwards his approved letter to Director (CP & P) who in-turn instructs his department engaged for Recruitment and Selection who is headed by AGM (HR & ER) to start and fill the vacancies with appropriate candidates.

6. AGM (HR & ER) after getting approval prepares a draft advertisement and sends for approval to GGM (HR) who forwards it to Director (CP & P) for approval.

7. After getting approval from Director (CP & P), AGM (HR & ER) instructs Public Relations Officer (PRO) to publish the advertisement.

Advertisement in Employment News/Company Website/Local News Papers/ Employment Exchanges/ Special Employment ExchangesCare for Reservation as per Central Govt. Rules is Applicable here

Written Test

Personal Interview

Selection on the Basis of Merit

Police Verification Report (PVR)

Medical Check-Up

Appointment Letter

Induction Program / Orientation Program

Other essentials• Campus recruitment is done only for Naval Architects who are directly taken on Sr.

Engineer Position.

• Recruitment for Jr. Engineer is done on internal basis in which, employees from Group C are promoted on the basis of their performance during entire service with the organization. It is done only if vacancy arises in Group B due to any circumstances.

• Ex-Servicemen are given age relaxation as per Government Rules (GR). No reservation system is followed for recruitment of Ex-Servicemen.

• Freshers are recruited in the organization as Probationary Officers and kept on probation for one year before making them permanent on the basis on performance during the probation period.

• Experienced people are recruited where vacancy arises due to any circumstances and the management thinks that it is suitable to recruit an experienced person on that particular position.

What are Backlog Vacancies?

• Total Requirements were – 200• Selected Candidates were – 200• Joined Candidates were – 180Now, out of the selected candidates, following status is in front as on 1st January 2010:-

For the purpose of record keeping, on 31st December 2009, it is called as Unfilled Vacancies and on 1st January 2010, it will go in the Backlog records and company has to publish these vacancies as backlogs in different job advertisement sources to fill it in the year 2010.

The vacancies of Group B Category are filled through internal recruitment process where a Group C candidate has to go through all the selection processes of officer level candidates.

Category Required Joined Backlog

SC 12 10 2

ST 10 8 2

OBC 35 30 5

Note

• The function of recruitment will be costlier if handled by MDL themselves, this function is outsourced.

• The cost per candidate ranges between Rs 200- Rs 500 for workmen cadre.

Grade Pay Scale(Rs.)

*CTC perannum in lakhs(Approx)

Reservations

Min. Max. SC ST OBC UR Total

E-5 32900-58000 8.40 14.80 - 01 01 02 04

E-4 29100-54500 7.45 13.90 01 05 05 18 29

E-3 24900-50500 6.35 12.90 05 04 12 27 48

E-2 20600-46500 5.26 11.85 06 04 11 23 44

E-1 (Fin.Off) 16400- 40500 4.19 10.30 1+2 BL NIL 02 04 09

E-1 (Tech& MedOff)

16400- 40500 4.19 10.30 1+3 BL NIL 02+02 BL 03 11

Total 145

Grade – Pay scale- Reservation

VH HH OH Total

02 01 01 04

Person with Disabilities.

PROMOTION POLICIESSince, Mazagon Dock Limited due to its various engineering requirements for Ship Building has to follow a Multi-Trade system where different Groups & Grades of employees work together to achieve the production targets. The 10 grades in IDA Pattern are as follows:-•ID1 – Unskilled

•ID2 – Semi-Skilled Gr. I

•ID3 – Semi-Skilled Gr. II

•ID4 – Semi-Skilled Gr.III

•ID5 – Skilled Gr. I

•ID6 – Skilled Gr. II

•ID7 – Highly Skilled

•ID8 – Special Grade

•ID9 – Mistry / Special Grade Engine Driver

•ID10 – Charge-hand

The two categories of employees in MDL DA Pattern are as follows:- Operatives• W1 – Skilled Gr. I• W2 – Skilled Gr. II• W3 – Highly Skilled• W4 – Special Grade• W5 – Mistry / Special Grade Engine Driver• W6 – Charge-hand Gr. I• W7 – Charge-hand Gr. II

• promotion policy.docx

•

These are following functions of the Training and Development Department:- 1. Conducting in-house training programs for:-

• Operatives• Staff• Sub-Staff• Officers (from AGM & Above)

2. Conducting external training programs for AGMs & above only in :-• IIMs• ISB Hyderabad• IITs• National Safety Council• Any other institutes which is important as per need

3. Conducting refresher courses – Depending on requirements.

4. Maintaining the Library in Management Development Centre and addition of updated and new books for use by the Officer Level Employees only.

5. Imply Training for Project Works.

6. The budget for T&D Department currently is 75 lacs 7. general procedure for training.docx

•Performance Appraisal is done twice a year and KPAs are considered for the same.•The immediate superior gives marks to the subordinates•It is a policy that 90% should pass while the remaining 10% (lowest) will fail

•Succession Planning is done keeping in mind two factors•Seniority cum Merit up to the level of managers•Merit cum Seniority after this level.

Other benefits

MDL follows all government policies w.r.t. giving benefits to its employees .eg. Maternity Benefit, Housing Facility, Health, Safety and welfare measures .etc.