Comparison of HR policies of Public & Private Sectors

Contents

• Company Profiles• HR Policy• Recruitment• Training• Work Life Balance• Employee Development And Growth• Remuneration• Appraisal System• Employee Benefits• Dealing With People• Employee Satisfaction• Conclusion

Company ProfileBPCL

• Integrated Petroleum Refining And Marketing Company

• Fortune 500 & Forbes 2000 Company

• Revenue US $ 28 Billion Per Annum

• 14000 Employees• “ People Above Oil”

NESTLE

• Large International food manufacturer

• Net profit :$10.43 Bn• Operates in 86

Countries• Employees : 2,86,000

worldwide

HR PolicyBPCL

• ‘Great Place to Work’• Fosters effective value-based

HR processes • Competitive edge • Personal vision

• The thrust areas include• Performance Management • Competency Modeling • Identifying Competency gaps • Multi-skilling

Nestle

• Prerequisite : Respect and trust• for intolerance, harassment or

discrimination • Transparency and honesty • boosts continuous

improvement• Sharing competencies and

boosting creativity• Open conversation with

superiors or colleagues• Willingness to cooperate and to

help others (promotions)• In case of disharmony amongst

employees : fair hearing

RecruitmentBPCL

• Takes place at junior level• Company believes : “Building its

human potential rather than buying”

• Increase sales force : “retraining and redeployment”

• Average age profile : 35-40 years.

• Job Rotation system• Responsible position : work

experience (3 dept.)• Engineers : IIT’s, NIT’s whereas

MBA’s are recruited from XLRI and IIM’s.

Nestle

• Hires staff with personal attitudes and professional skills (long-term relationship)

• For managerial position: leadership qualities and business acumen are required.

• Contacts with universities, attendance at recruitment events, etc.

• Decision to hire : Responsible Manager + HR staff

• No consideration of origin, nationality, religion, race, gender or age.

TrainingBPCL

• 2 week class room training

• 2 months field training

Nestle

• On-the-job training• Classroom training• e-learning• Job rotation• Performance

management• International

assignments• Coaching• Project assignments

Work life balance

BPCL

• Family Well-being

• Grooming Children as Care Takers of Next Generations

• Parenting

Nestle

• Reconciles economical imperatives

• Flexible working hours

Employee Development and Growth

BPCL

• Set up : Development Center”

• Annually 3 workshops

• IDEAS

Nestle

• International Training Centre Rive-Reine

• E-learning programs

RemunerationBPCL

• Remuneration is more in form of perks than in monetary form

• Taking care of employees intellectual and growth needs and the promotion of a cohesive work culture

• Quarterly career development reviews are conducted for all employees apart from the annual performance appraisal

• Every employee has the freedom to complain regarding various issues like home, promotion policies, subordinates, boss etc to the higher authorities.

Nestle

• Remuneration includes equal levels of monetary and perks form

• It is determined by the capacity of the Company to improve its productivity.

• Wage and salary structures are kept simple to avoid unnecessary complexity

• Structure facilitates the implementation of flat organizational structures and be flexible to adapt to evolution of market.

• Manager is responsible to communicate clearly and with sufficient transparency, the individual remuneration of staff

BPCL•Performance appraisal systems are in place in the company.•360 degree mechanism approach is adopted by the company.•Evaluation on the basis of measurement of the outputs given by him•In case of a problem the manager along with his sub-ordinate can trace root cause of the problem in order to eliminate it. •Feedback system •fast track promotion policy wherein the min. no of years of experience brought down from 5 to 3 years.

Nestle•Formal assessment takes place on a regular basis. Its purpose is to provide feedback on past performance and future potential•Each employee is in charge of his own professional development. •Encourages its employees to express their objectives and expectations in an open dialogue. •The objective is to retain and motivate employees by offering attractive but realistic career moves allowing them to develop over a long-term period within the framework of economic reality

Appraisal System

Employee Benefits

BPCL

•Housing is provided by the Company•health check-up for all employees once a year. Specially for employees working in hazardous areas of refineries and lubes locations•counseling for life-style diseases - diabetes, hypertension, etc. for employees. •Conduct stress management sessions, yoga, meditation etc. •Truck crew and lorry crew are in high risk category to HIV/AIDS infection. BPCL were amongst the first companies in India to sign the ILO Charter on HIV/AIDS•Tie ups with NGOs

Nestle

•Besides health camps, they have gymnasium facility at their head office.•Fair employment is followed with recruiting relatives of the employees. •Provided that they are equally suited as other candidates, priority may be given to children of Nestlé employees for short-term assignments.•Immediate family members and partners of employees may be hired as employees provided that there is no direct or indirect reporting relationship between the employee and his or her relative or partner

BPCL•Vision ‘Make people the source of our improvement’ are reflected in the policies relating to employees•Discrimination between employees on any basis is not tolerated•Have special reservations and concessions for employing persons with disabilities (SC), (ST) and (OBC) in the organization

Nestle•All respect a series of principles concerning employee’s rights, the protection of children against child labour and other important issues. •Any form of harassment, moral or sexual, is not only prohibited but actively tracked and eliminated•Internal rules and regulations explicitly deal with discrimination and harassment issues so as to obtain the best possible prevention.

Dealing with people

Employee Satisfaction

BPCL

•BPCL “A Great Place to Work”, the Employee Satisfaction Enhancement (ESE) cell was formed in the year 1998•Objective is to lay down a framework for prompt redressal of genuine grievances of all employees•The Cell proactively works towards improving the systems and processes.•Some of the major grievances received by the ESE cell refer to:•Transfer requests•Performance Management System related issues•Promotion related issues•Inter-personal issues•Personal problems•Delay in sanction of loans•Late receipt of benefits/reimbursements•Salary anomalies

Nestle

•Promotions are exclusively based on competence, insight, performance and potential with the exclusion of any consideration for origin, race, nationality, gender, religion or age. •Flexibility is a requirement for ensuring a positive professional evolution. Staff may be requested to move to other positions. •International experience and participation in group development initiatives are a requirement for holding high-level positions.•Job rotation is practiced with caution. As it might be useful under certain circumstances, it should not result in weakening our expertise in key areas

Our AnalysisPSU- salaries are less, perks are more

Ministry interference at BPCL and Nestle worldwide interference at Nestle India

Joining the company at initial stage – BPCL, Joining the company at any time – Nestle

Attrition rate at BPCL is lower due to various factors.

Comparing BPCL and Nestle India we see that BPCL is a much larger company with higher revenues.

Many a times PSUs like BPCL have to undergo losses due to the subsidized price set by the govt. such a situation is observed in the case of LPG and petrol sales.

Social status as PSU company head is more than private company

PSU – safety and security of job

THANK YOU!