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Human Resource Management

Human resource management is known by different names like Personnel management, Manpower management, Personnel administration, Staff management, etc. In simple words, Human resource management may be defined as a set of policies, practices and programmes designed to maximize both personal and organizational goals. It is the process of binding people and organizations together so that the objectives of each are achieved. According to Flippo, personnel management or Human resource management is the planning, organizing, directing, and controlling of the procurement, development, compensation, integration, maintenance and reproduction of Human resource to the end that individual, organizational, and societal objectives are accomplished. In every organization, human resource management is very useful to improve and maintain relation between management and employee, trade union and management. It works as a watch dog on each and every activity of employees, management, labour union, etc. Dharmanandan Diamonds has a very well developed human resource management. Mr. Dayabhai is very helpful person. He is MBA in HRD. So he is a well knowledged in the field of human resource. His assistants also very well related with HRD. Mr. Dahyabha believes that any organization get success if there is proper co-ordination between its employees and management. In this topic we discuss and see about how human resource department working and doing its activity to develop good relation between employee and management to get success in achieving goals.

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Activities of Personnel or Human Resource Department

Organization Structure Of Human Resource Management:-



HR OFFICERS (3 Persons)

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Study of organization structure to decide what type of organization structure is designed for company.

In a simple term, structure is the pattern in which various parts or components are interrelated or interconnected. Thus, organization structure is the pattern of relationships among various components or parts of the organization. This prescribes the relationships among various activities and positions. Since these positions are held by various persons, the structure is the relationships among people in the organization. Dharmanandan and subordinate Line position Production department Selling department These departments come under staff position because they get advice from finance department and human resource department in the matters like, purchasing, recruitment, selection, etc. Diamonds have line and staff type of

organization structure. Because there is good relationship between superior

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TOP MANAGEMENT (All partner)







Human Resource






Asst. manager

Sales executives Staff

Asst. manager

Asst. manager Workers Comp. Operators

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Recruitment & Selection

Recruitment Process:-

According to Flippo, recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. The process begins when new recruit are sought and ends when their applications are submitted. The result is a pool of applicant from which new employee are selected. 1. get the information about recruit employee from other department 2. find the source of manpower 3. selecting the employee whose character is match with require job 4. give them information about organization and job 5. encourage them to apply for job

Documents Related to Recruitment and Selection

Dharmanandan Diamonds have following kind of document for recruitment and selection: Application blank Wages structure Physical check up report Appointment letter Agreement between company and employee

Source of Recruitment
Dharmanandan Diamonds has mainly following type of employees, each having different source of recruitment. 1. Highly skilled 2. Skilled 42 HRM

3. Semi skilled 4. Unskilled 5. Trainee

Source of recruitment

Internal source Family references Casual callers Transfer Promotion Past employees

External source Campus interview(IDI) Advertisements Competitors Placement agencies

Internal Source:In diamond industry, While selecting new employee HR manager have to see that the new employee is trustful or not, because Dharmanandan Diamonds is producing big size diamond and every piece of diamond is very costly, if any diamond is missing or stolen by employee than company have occur loss of this particular diamond. If the employee is relative of current employee, than he can not do this kind of activity. if he doing than the reference will responsible. So the internal source of recruitment is very important as compare to external source. Family reference Current employee is the main strength of the organization. Every person wants that, his familiar and friend will get good job in good work environment. Dharmanandan Diamonds is known as familiar organization for employee. Whenever company has need of new employee, the H R

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manager announce by P.A. (public announcement) system about which department will need job, nature of job, no. of employee needed, date of interview, etc. if the current employee want to take new employee than he will inform to H R Manager. Casual callers Many people want that he will get job in such a big organization. Dharmanandan Diamonds has a good prestige in diamond market. The work environment is also very good. So many people registered their name for future job. Company also uses this casual caller application. Transfer Transfer is also a very good internal source of recruitment. But transfer is not applicable for every post. For example, for production staff requirement, transfer is not possible. Transfer can become a good source for following type of job: Computer operator Peons Promotion Promotion is motivational way to fill the job. The people who get promotion will automatically motivate toward their work. This is specially done when manager level post is needed to be filling. When any departmental or other manager leave the organization for some reason, than for this post the best person is junior manager or assistant manager because he work with senior manager from long time, he have very good experience of the work. With getting promotion the job satisfaction rate of the employee will also increase.

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Past employee Many time employees leave the organization because of some

personal or other problem. H R Manager also contacts them for get job again.

External Source: Campus interview It is a good source for getting highly skilled and trained employees. There are many educational institutes from where company gets employees. Here is one table which showing that for which job which institute if good: Job or post Assorter Planner Signer Computer operator Account dept. staff Typist Sales executive Managerial people Management institute Educational institute Indian Diamond Institute (IDI) Diamond Training Classes Computer education colleges and classes

Advertisements For the post like computer operator, accountant assistant,

signers the organization give advertisement in internal and external both way. Internally, advertisement is done by PA system and put notice on board. Externally, for some post advertisement given in the newspaper, prepare a banner with writing that wanted good and experienced worker, date of interview and put it on the get of the company. They give advertisement in the local newspaper also.

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Competitors If in other company have good signer than company contact him

and give him offer of good salary and facility. Signer is the very important person in the production process, because the final plan of diamond is prepared by signer. Placement agencies For some post company get help of some employment agencies. The post filled by employment agencies is security staff, peons, cleaning staff, etc.

Selection Process
Selection is the process of choosing the most suitable persons out of all the applicants. In this process relevant information about applicants is collected through a series of steps so as to evaluate their suitability for the job to be filled. Application blank Selection test Work test Behavior test Physical check up Fixing wages Work appointment

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Selection process (Need: 10) (50 application)

Application blank
(Rejection: about 20)

Selection test
(Rejection: about 15)

Work test
(Rejection: about 10)

Behaviour test
(Rejection: about 5)

Physical check up
(Rejection: about 3)

Fixing wages
(Rejection: about 2)

Work appointment
(Rejection: no)

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1. Application blank When employees come for job or apply for the job, he has to fill one blank form which includes all basic details about him. This form is known as application blank. By this form company collect basic detail about applicant. H R Manager analyzes that form and selects some applicant for further process.

This form include following item: Name Address (permanent residential address) Address (native place address) Contact no. of both addresses Educational qualification Work experience Strength and weaknesses Where he work last (address) Family member Expected salary

2. Selection test Work test After analysis of application blank, the applicants who select are called for work test. For production employee work test will be take for 2-3 days. During this test the applicant works in the company as the employee of the organization. The work done by applicant is check by production manager. If the quality of work is good than employee is select and vice versa. In the work test following point is check: Speed of work Quality of diamond prepared by him 42 HRM

regularity Behavior test The attitude and behavior is also check along with work test. During the days of work test applicants behavior is supervise by assistant manager (HR). How applicant is behave with other employee, Nature of applicant, Attitude, etc. are check during behavior test.

3. Physical check up The applicant who passed from work test and behaviour test are sending for medical test. The health officer checks every applicants physical position is examined. If the employee has any epidemic disease, eye sight problem, or other problem by which the candidate will not work properly is rejected. 4. Fixing wages The applicant shows the expected salary in the application blank form. The H R Manager fixes the wages/salary structure individually for each applicant. For production employee salary is set by wages system. The wages is same for employee. The fix salary is also there for many posts, it will change according to ability of the applicant. 5. Work appointment If the salary or wages set by H R Manager is accepted by applicant than he will get final appointment letter. The date of joining is known to candidate. There is one agreement is prepared and signed by applicant and H R Manager which include employee code no., designation, salary structure, rules and regulation of organization, etc. It is the common understanding between employee and management that the work and salary offered by management is accepted by employee.

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Job Description:Job Description is a written statement showing job title, tasks, duties and responsibilities involved in a job. It also prescribes the working conditions, hazards, stress that it can produce and the relationship with other jobs. Flippo has defined job description as follows. A job description is an organized, factual statement of duties and responsibilities of a specific job. In brief, it should tell what is to be done, how it is done and why. It is a standard of function, in that it defines the appropriate and authorized content of a job. In Dharmanandan Diamonds, H R Manager is not prepared any kind of documents related to job description. He just give as brief idea about tasks, responsibilities, working condition, and facility. So we prepared following table showing job description of the two jobs; Signer and Assorter as example. Job description for Signer (planner) Title Department Tasks Responsibilities Working condition Signer Production department Sign (mark) on diamond according to the shape. Mark to prepare the best diamond in shape and size with minimum rejection o Minimum 150 carat diamond will be marked o Quality have to be good Facility at workplace o Come on time, late will be on the next day o Centrally A.C. building o Material handling is easy and fast o Necessary provided Salary level o Good and healthy environment 8,000 to 25,000 tolls and equipments are

Job Description for Assorter Title Department Assorter Production department 42 HRM

Tasks Responsibilities Working condition

Assort on diamond according to the size, clarity and color. Classify the diamond to make easy further production process. o Minimum 200 carat diamond will be marked o Quality have to be good o Come on time, late will be on the next day o Centrally A.C. building o Material handling is easy and fast o Necessary provided tolls and equipments are

Facility at workplace

Salary level

o Good and healthy environment 5000 to 15000

Job specification:Job specification is also known as man or employee

specification, is a statement of minimum acceptable qualities required in a job incumbent for the effective performance of the job. In contrast to job description which provides various features of the job, job specification specifies various feature of the job holder. Flippo has defined job specification as follow: Job specification is a statement of minimum acceptable human qualities necessary to perform a job properly .. It is a standard of personnel and designates the qualities required for acceptable performance. Dharmanandan Diamonds is related with production of diamond. In diamond industry there is no more educational qualification needed for workers. There is need to check diamond properly and plan it,

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so physically the eye sight will be very good and mentally judgment power will be good.

The basic characteristics of general employee are as under: Age *Education Job experience Physical Above 18 years 10 + 2 Minimum 5 years in the same field No handicapped Eye sight will be good Mental Habitual Have no any epidemic disease Judgment power will be good General intelligence No any bad habit like smoking, drinking, tobacco, etc. it is compulsory.

* means education is change as per job requirement, for example employees like, accountant, computer operator, planner, etc. there is need of high educating. For the employees like brutter, polisher there is no need to more than primary education.

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Human Resource Planning Process

Human resource planning is understood as the process of forecasting an organizations future demand for, and supply of the right type of people in the right number. It is only after this that the Human resource planning department can initiate the recruitment and selection process. Human resource planning is a sub-system in the total organizational planning. Organizational planning includes managerial activities that set the companys objectives for the future and determine the appropriate means for achieving that objective. Dharmanandan Diamonds have design the human resource planning process in its own manner. The process is as under: 1. Objective First of all, he (H R Manager) decides the objective of the need of employee. We can say it as the reason behind need employee. The objectives are as follow: New machinery installed. Capacity increased. Current employee leaves the organization. New branch started. 2. How many needed? There is no specific method used by Dharmanandan Diamonds pvt ltd to decide number of employee. H R Manager takes decision about number in following manner: If the new machine will install than need raises according to capacity of machine. For example one saran machine needs 4 employees. According to capacity installed. 42 HRM of new

Fill the post which is vacant. 3. Source of employee After deciding number of employee, next step is to find out the best source from where the company can get good employee. The source of recruitments is as under: Internal source Family references Casual callers Transfer Promotion Past employees External source Campus interview(IDI) Advertisements Competitors Placement agencies 4. Selection process The step of selection process is as under: Application blank Selection test o Work test o Behavior test Physical check up Fixing wages Work appointment

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Training and Development

Training is bridge the gap between job requirement and present competence of employee. For improve the quality of work, reduce wastage, increase productivity, keep and maintain control-ordination, there are mainly three type of training program is organized: Induction training Work training Behavioral training

Induction training
Induction training is for new employee. This training is understood below as separate topic.

Work training
The main purpose behind work training is to improve the quality and increase the productivity. In this training special technician come to organization and explained the proper method of working. This training is held on every 4-5 month. This is very beneficial to the firm. The employee can learn how to produce material with minimum cost and maximum quality. In the diamond industry, quality has more important than quantity. When new technique and machinery installed at that time work training is very important.

Behavioral training
In this training, the main point of teaching is that how to behave with other. This training is directly undertaken by H R Manager. He understands employees about moral of human life, good thinking, way to reach success, keep and maintain control-ordination with superiors and subordinates. For training sometime they called specialist of different 42 HRM

knowledge like mind planner, religious person, psychologist, etc. when the complain about the behaviour of any particular employee is coming at that time, H R Manager organize meeting between this employee and himself and understand the employee about above thing. This training is especially helpful to resolve the conflict between employees.

Induction Training
Induction training is specially given when new employee join the organization. When new employee joins the organization, he doesnt know that who are the superior and subordinate, which rules and regulation he has to follow, what is the work environment, etc. to aware from all this thing to new employee induction training program is organize. In this program is organized by human resource department. The trainer is Mr. Dahyabhai (H R Manager). He introduces the new employee with other staff member. The following step is followed by H R Head during induction training:1. Meet the new employee in his office personally 2. Give them necessary detail about the organization. 3. Understand them the rules and regulation of the organization. 4. Take him to his superior and subordinate and introduce him (employee) with them. 5. Provide him the uniform, i-card and tools and other necessary item. 6. Take him in trust that if he has any problem he can meet H R Head.

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How Training needs are identified for existing employees?

There is no any formal procedure of identify the need for training. We discuss with them about method of identify training need but they not agree with us. They have three type of training as we see above. So here we write that how they identify the need of training. When quality level will not maintained. There is conflict between employees. New technology is coming. Install new machinery. Need to increase the productivity.



Promotion refers to a higher post carrying greater responsibilities, higher status and best salary. It is the upward movement of an employee in the organizations hierarchy to another job commanding greater authority, higher status, and better working condition. In Dharmanandan Diamonds promotion is done on work or merit basis. The worker who performs well, work efficiency is good will be promoted as motivation. Promotion is mainly done as increase salary if the vacancy in higher post than employee will be promoted on higher post.

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Promotion in Dharmanandan Diamonds is as follow: 1. 2. 3. The decision of promotion is taken by every department manager. For managerial post, decision is taken by top management. There are mainly three ways of promotion: Increase in salary Send to higher post with increase in salary 10 % bonus salary every month If the employee is good, hard working and have more ability than he will be promoted. If there is no vacancy in higher post than promotion will done as increase in salary. Every employee gets 10% extra of salary every month as promotion. Promotion will be done by proper analysis of annual data of employee, work record, behaviour, etc.

Demotion is the downward movement of employee from up position to down position with decrease in salary. Demotion is done because of following reason: If the quality of work done by employee is very poor If he will not regular Behavior is very poor

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Transfer:Transfer is the process of shifting the employees to another department or another branch. Dharmanandan Diamonds uses this tools many times in year mainly for managers. They provide promotion or demotion which is one kind of transfer.

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Performance Appraisal
According to H R Manager, Performance Appraisal is very important. By this we can take decision about particular employees productivity. The firm invest behind employee to provide good environment and facility, so it is necessary to check that whether firm get proper return of its investment or not. In Dharmanandan Diamonds every piece of diamond prepared by employee is checked and if there is problem than it send back for improvement, so in other words performance is measured with every piece of diamond. But sometime it may happen that the quality will reduce, efficiency will decrease at that time performance appraisal is done. Performance appraisal is done in very good manner. The formal process of performance appraisal of Dharmanandan Diamonds is as under:

Process of performance appraisal:-

Set the parameter

Taking action

Communicate parameter

Check the results

Measurement of performance

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Set the parameters The parameter is set by proper discuss between experts and

production manager. The parameter is decide with undertaking of average employee not so excellent, not so week. For different post, there are different parameters which we can take as performance measurement parameter. By checking and evaluating this parameter we can take decision about performance of employee. For example: Assorter: speed of assorting, number of diamond, clarity in assort Signer: speed, planning of cutting. Polishing staff: speed, polishing, clarity Computer operator: speed of typing and data entry, level of correction. Communicate the parameters The parameter set by manager is communicated with employee and examiner. If there is any problem with parameters and need to improve than send back to H R Manager and improve it. Well communicated parameter is helpful to making performance appraisal process prefect. If the parameter is communicate than employees can know that how they have to behave. Measurement of performance Performance is measured according to the parameters set by specialist. Production manager note down the data received actually in the form in which the standard is already written. He put the original data in front of the standard.

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Check the result The data received actually is compare with the standard data. If it

is less than standard than the performance is not good and vice versa.

Taking action When the result is achieved, the result is needed to communicate

with employee. There is meeting between employee and examiner or H R Manager, he tell the result to employee. If the result is bad, than examiner give guidelines to improve the performance in positive manner.


Wages and Salary Administration

Wages is the reward in monetary terms or in the forms which can be expressed or understood in the monetary terms or payable to or paid to employees for the services rendered by them to the organization if the expressed or implied terms of employment are fulfilled. In Dharmanandan Diamonds, there are both kind of compensation system. Both means piece wage rate system and fix grade salary. Wage rate system is applicable for the employees like brutter (brutting activity), polisher (polishing activity) of production department.

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Type of Work Brutting Table Angular Bottom

Wage Rate (in Rs. Per Piece) 6.00 2.00 2.75 2.50

Fix grade salary system is applicable for the employees like Assorter, signer, cleaving and sawing staff, human resource and account department staff, security, peons and cleaning staff. Employees Departmental Manager Signer Assorter Sawing Staff Computer Operator Security Staff Peons Cleaning Staff Salary Level* (Rs. Per Month) 25,000 35,000 8,000 25,000 5,000 15,000 3,000 6,000 3,000 6,000 2,000 4,000 1,000 2,000 1,000 1,500

(* This level provides basic idea about salary structure. It is not fixed. Salary will go up or down out of this level according to qualification and ability of worker.)


Welfare means anything done for intellect ional physical, moral and economic betterment of the workers, whether by employers, by government or by other agencies, over and above what is laid down by law, or what is normally expected on the part of the contracted benefits for which workers may have bargained.

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Internal welfare activity

clinic Medical help named by Dharmanandan Clinic situated in building of Dharmanandan Diamonds have special health officer. This officer runs a Dharmanandan Diamonds in which the employee of Dharmanandan Diamonds and his familiar can get medical facility totally free. If any employee have a serious diseases and need to do operation at that time if he request for money than Mr. Laljibhai Patel will help him financially. He tries that the employee will get well soon by good medical treatment with low money. Canteen

In Dharmanandan Diamonds there is no any kind of system to take lunch box from home and eat during the lunch break. There is big canteen which provides good and healthy food to every employee with no any charge. The food is prepared from good quality of material. It is pure vegetarian food. Dharmanandan Diamonds have very talented and gentle peons. They provide tea and coffee twice in a day. Insurance

The Surat Diamond Association has a very good scheme of insurance of the employee of any diamond industry. In this scheme, the premier is of 250 Rs. per month. When the employee die or injured in accident at that time the familiar of the employee will get financially help. The every employee of Dharmanandan Diamonds is insurance policy holder of The Surat Diamond Association and the premium of the policy is paid by Dharmanandan Diamonds. Financial help

Whenever employees have need of money the owner is always ready to help them. Dharmanandan Diamonds gives loan at very low interest for many purposes like marriage, house, etc.

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External welfare activity

Medical clinic Dharmanandan Diamonds runs clinic for outside people also. The poor people come to this clinic and get treatment at very low charge. If the patient is very poor and not able to pay charge than Dharmanandan Diamonds gives him free treatment. Donation Dharmanandan Diamonds also gives donation to many charitable trusts, educational institute, Anathasharm, temple, etc. the owner Mr. Laljibhai Patel believes that it is our duty to serve the society. Any trust or organization can go to get financial help to Mr. Laljibhai Patel without any problem. Help to needed people Many outside people also come to Dharmanandan Diamonds for get financial help. During our training we see that there two person comes with the letter of hospital. This person is suffering from kidney disease and need to transplant the kidney, so he needs 3 lacs. Rs. When he request for money immediately Mr. Laljibhai Patel give him cheque of Rs. 30,000.

Motivation System:Dharmanandan Diamonds is done very good work for motivate the employee as following: They organize yoga shibir Motivate them to leave bad habit Provide good facilities Work environment is healthy and good

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Human Resource Audit

In any organization the activities of various departments are constantly reviewed to ascertain if they are moving in the desired direction and to decide what changes should be made in view of altered environment at conditions. For instance, the HR Manager himself will be concerned about reviewing the activities of his department.

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H10> Hierarchy





Marketing department:In marketing Department Company designed the geographical line organization structure. This department is line of finance and human resource department.

Head office Mumbai


Foreign (Hong Kong, Dubai)


Sales executive

Sales executive



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Production Department:In production Department Company designed the departmental line organization structure. This department is line of finance and human resource department.

Production manager





Assistant Manager (4)

Assistant Manager (4)

Assistant Manager (2)

Assistant Manager (6)





Finance Department:In finance Department Company designed the pure line organization structure. This department is work as staff position for production and selling/ marketing department.
Chartered account Mr. Dipakbhai

Finance manager Mr. Vinubhai

Assistant manager

Computer and Data entry operators (5)

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Human Resource Department:In human resource Department Company designed the pure line organization structure. This department is work as staff position for production and selling/ marketing department.




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Study of Bases for Departmentation:The first real task in designing an organization structure is the identification of activities and to group them properly. The process of grouping the activities is commonly known as departmentation. The terms used to denote departments that results from departmentation vary a great deal. In business organization, such terms as division, department, and section are used.

Function wise The grouping of common or homogeneous activity to from an organization unit is known as functional departmentation, that is, the units are organized around common functions. In Dharmanandan Diamonds, there are four main or basic functions like production, finance, marketing and human resource management.

Top management

Managing Director




Human resource





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Geographical Departmentation:Dharmanandan Diamonds is doing export and import of rough and polished diamond, so we can classify its activity as following departmentation.

Process wise The manufacturing process of Dharmanandan Diamonds is divide in main four activity like assorting, planning, sawing, polishing. The departmentation according to production process is as under.

Production department





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Absenteeism Rate
The meaning of this term is the rate of absenteeism. How many employees are absent on the daily bases. The answer from the Dharmanandan Diamond is little means 1.5 2% yearly. Dharmanandan Diamond has 550 - 600 employees but absenteeism rate is not high because if any employee absents without take a leave his or her salary will be deducted and the environment of Dharmanandan Diamond is very sincere.

H12> Employees Turnover

The meaning of this term is the rate of employees who leave the organization. No one is satisfy in this world because the need of the human being is infinite so to satisfy the needs he or she want to earn more in less of the period of time. So many employees are going to join new organization and many employees are going to leave. Turn over ratio of Dharmanandan Diamond is 10 - 15%.

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Labour Relation and Activities of Trade Union

Generally, in diamond industry we can not see any kind of trade union every employee comes in the organization independently. There is one organization which performs as a well wisher of employee of diamond industry named by The Surat Diamond Association. This organization has some guidelines for the environment and facility of employee of diamond industry. According to this association every industry has to follow some guidelines as below: They fix the wage rate. No any organization should have to pay wage lower than. Guideline about basic facility like water, canteen, etc. Environment should be clear and healthy. Provide good uniform and safety device.

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