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A Report On

BEST H RPRACTICES O F

J C B& ITS COMPETITORS

By

ANUPAMA
ceoannu@gmail.com International School of

Business & ~1edia Pune

Table of Contents

ACKNOWLEDGEMENT

INTRODUCTION

COMPANY PROFILE

JC B
Escorts

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ACE

HR PRACTICES IN
RECRUITMENT

Questionnaire
SELECTION

Questionnaire
TRAINING AND DEVELOPMENT

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9

Questionnaire

WAGES AND SALARY

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3

Questionnaire
BENEFITS

Questionnaire
INDUSTRIAL RELATION

Questionnaire
PERFORMANCE APPRAISAL

Questionnaire
HUMAN RESOURCE INFORMATION SYSTEM

Questionnaire
WELFARE
CORPORATE SOCIAL RESPONSIBIUTY

Questionnaire
CONCLUSION
BIBLIOGRAPHY

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ACKNOWLEDGEMENT
I have completed two months training in JCB India limited at Ballabhgarh Plant, Haryana. The
total strength of employees is around 1200, which consists of 900 associates and 300 managers.
I have got huge exposure related to my master's program content.
I came to know how HR functions are carried out by JCB India limited and its competitors Escorts
and ACE. All these three Plants are using updated tools and techniques.
I would like to thank Mrs. Neelam Dhaka, my training manager who has been quite
supportive during my training period. I would further like to thank my family for their immense
support.

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COMPANY PROFILE

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INTRODUCTION
The best HR practice is to implement the role of HR function properly and the role of HR
function is to enable the organization to achieve its objective by taking initiative and providing
guidelines and support on all matters relating to its employees. The basic aim

people, and the relationship that exist between the management and the workforce. A further

HR function is to playa major part in the creation of an environment


that enables people to make the best use of their capabilities and to realize their potential
for the benefit of both organization and themselves. The main HR function is making good HR
policies.

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HR should become partner with senior and line managers in strategy execution,
helping to improve planning from the conference room to market place.

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It should become an expert in the way work is organized and executed; deliverine
administrative efficiency to ensure that quality of work is maintained.
It should become champion for employees representing their concerns to senior
that is employee commitment to organization and their ability to
deliver result.

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It should become an agent for continuous transformation; shaping process and a

one ofthe world's top three manufacturers of construction equipment. It employ over 8,000
I have mentioned best HR practices of JCB and its competitors i .. e. Escorts and ACE in
following areas

Recruitment
Selection

Training and Development

people on 4 continents and sell products in 150 countries


through 1,300 dealer locations.

Wages and Salary

Throughout our 62 year history, it has always

Benefits

invested heavily in research and development,

Industrial relation

keeping JCB at the cutting edge of innovation.

Performance appraisal

HRIS

Today, JCB has some of the finest engineering facilities

Welfare Programme

across the globe, boasts a range of more than 220 machines

CSR

and maintains a reputation for unrivalled customer service.

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culture that together improve an organization's capacity for change.

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management and at the same time it should work to increase employee contribution
JCB

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JC B

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HR can deliver excellence by practicing following four ways

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i~ )\.0 ensure that

management deals effectively with everything concerning the employment and development of

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JCB India limited is 550 crore manufacturer of earthmoving and construction equipmci:l s and is
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fully owned subsidiary of JCB Excavators (UK).

J .e .Bamford Excavator~ limited of UK is ranked among top 5 manufacturers of earthmoving and


construction equipments in the world and is considered one of Britain's most impressive success
stories. JCB is the world number producer of backhoe loaders.
JCB India limited started operations in 1979 as a joint venture between the Escorts group and
JCB Excavators (UK)in 2003 JCB ACQUIRED 100% share and today it is the fastest growing
company in the Indian earthmoving and construction equipment industry. It is recording excellent
growth rate.
JCB has now pioneered in Excavator Loaders, Front End Loaders, and Articulated Loading
Shovels, Traced Excavators and Sid Steer Loaders. It has 11 different model variants.
The manufacturing location of JCB is in following countries.

1. UK
2. India
3. USA
4. Brazil

and
S. China

Escorts
The Escorts Group is among India's leading engineering conglomerates operating in the high
growth seL1:ors of agri-machinery, construction & material handling equipment,

railway equipment and auto components.


Having pioneered farm mechanization in the country, Escorts has played a pivotal role in the
agricultural growth of India for over five decades. One of the leading tractor manufacturers of the
country, Escorts offers a comprehensive range of tractors, more than 45 variants starting from 25
to 80 HP. Escort, Amtrak and Powertrac are the widely accepted and preferred brands of
tractors from the house of Escorts.
A leading material handling and construction equipment manufacturer, we manufacture and
market a diverse range of equipment like cranes, loaders, vibratory rollers and forklifts. Escorts
today are the world's largest Pick 'n' Carry Hydraulic Mobile Crane manufacturer.

Escorts have been a major player in the railway equipment business in India for nearly five
decades. Our product offering includes brakes, couplers, shock absorbers, rail fastening
systems, composite brake blocks and vulcanized rubber parts.
In the auto components segment, Escorts is a leading manufacturer of auto suspension
products including shock absorbers and telescopic front forks. Over the years, with continuous
development and impf,0vement in manufaqu~\n?(tef.r'l~?!~~ and design, new reliable products
have been introduced.
The Escort Group has also been operating in the ITES and financial services sectors.
Throughout the evolution of Escorts, technology has always been its greatest ally for growth. In
the over six decades of our inception, Escorts has been much more than just being one of India's
largest engineering companies. It has been a harbinger of new technology, a prime mover on the
industrial front, at every stage introducing products and technologies that helped take the country
forward in key growth areas. Over a million tractors and over 16,000 construction and material
handling equipment that have rolled out from the facilities of Escorts, complemented by a highly
satisfied customer base, are testimony to the manufacturing excellence of Escorts. Following the
globally accepted best manufacturing practices with relentless focus on research and
development, Escorts is today in the league of premier corporate entities in India.
Technological and business collaboration with world leaders over the years, Globally competitive
indigenous engineering capabilities, over 1600 sales and service outlets and footprints in over

40 countries have been instrumental in making Escorts the Indian

multinational. At a time when the world is looking at India as an outsourcing destination, Escorts

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is rightly placed to be the dependable outsourcing partner of world's leading engineering


corporations looking at outsourcing manufacture of engines, transmissions, gears, hydraulics,
implements and attachments to tractors, and shock absorbers for heavy trailers and armored
tanks.

In today's Global Market Place, Escorts is fast on the path of an internal transformation, which
will help it to be a key driver of manufacturing excellence in the global arena. For this we are
going beyond just adhering to prevailing norms, we are setting our own standards and
relentlessly pursuing them to achieve our desired benchmarks of excellence.

Construction equipment

Escorts manufacturers and markets a diverse range of construction and material handlirs equipment
like cranes, loaders, vibratory rollers and forklifts. The company was a pioneer in introducing the
concept of Pick In' Carry hydraulic mobile cranes in the 70s in India and continues to be the world's
largest manufacturer of these cranes.
A nationwide network of 16 Sales Offices, 50 dealership locations, over 300 company trained
dealers' service engineers, gives it the best market reach in India for the Sales & Service of
material handling and construction equipment.
With over 30 years experience in Construction Equipment Industry, Escorts has a proven track
record in :
Hydraulic Mobile Cranes
Loaders
Forklifts
Vibratory Compactors

ACE
ACE is the leading mobile crane manufacturing company in India which has progressed all along to
become professionally managed ISO 9001 certified company. ACE is promoted by technocrat,
assisted by a team of experienced managers and engineers.

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A
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uct range includes:


Hydraulic mobile pick n move
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Forklift truck
Loaders
Tower cranes
Aerial work platforms
Mast climbing platforms/lifts
Lorry loaders/ truck mounted cranes

ACE is dynamic and powerful enterprise with its full fledged production facilities based in
industrial township of Faridabad, which is 45 kms from New Delhi national capital of India.
ACE equipment is being successfully used in many industrial sectors like infrastructure,
construction, road, engineering industry coal mines, chemical and fertilizer plants power stations,
ports, heavy project engineering industry, railways, cement industry, oil industry, defense etc.
ACE range of equipments can be adapted to satisfy a vast range of possible applications due to
their versatility.
In India ACE has conquered a consolidated presence in its sector an efficient sales and service
network and a comprehensive follow up system makes it possible to provide, all customers with
efficient distribution and service assistance that has the priority of satisfying their real needs.
ACE has always firmly believed in quality of its products and product support ever since its
inception and this is the secret of the company to satisfy customers.
First rate team work and carefully targeted investment in technology and human
resource has made ACE one of the most efficient business in its sector.
ACE has its central marketing office in New Delhi and workforce employed in the sections of
production, research and development, materials, marketing, after sales assistance, finance and
administration are engaged to take the company to new horizon of success

BEST HR PRACTICES IN
RECRUITMENT
Recruitment refers to the process of sourcing, screening, and selecting people for a job or vacancy
within an organization. Though individuals can undertake individual components

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of the recruitment process, mid- and large-size organizations generally retain professional
recruiters.

Q. What is the recruitment process in your organization?

JCB:External and internal both the sources are used in JCB to attract the candidates from
the job market.
Advertising in newspaper: sometimes this source is used in JCB but not much
Campus Recruitment: JCB has tie-up with some institutes so JCB's HR professionals go to
those institutes to select the right candidates to fill the opening position in the company.
Through Consultancies: JCB has contract with some consultancies so company ask for
resume whenever they need a new employee.
Employee referrals:

Sometimes Company asks references from the existing

employees.
Contractors: JCB also has contract with some contractors to hire casuals.
Present Employees: JCB has policy to promote or transfer its employees to higher position
or to other cities.

Escorts:

Like JCB; ESCORTS also uses internal and external sources to recruit new

employees Through Consultancies: ESCORTS has contract with some consultancies like
JCB. So, according to vacancy in the company these consultancies give them resume of
candidates.

Advertisement

in newspaper/on internet: company gives advertisement in newspaper or

on internet or on both and then gets a number of

OIs and then matches these

OIs

according to needs.
Employee Referrals: When company feels that there is need to deploy some people within
short period of time then company asks for references from its existing employees.

ACE:Like JCB ESCORTS also uses internal and external sources to recruit new employee.
Through

consultancies lie JCB and ESCORTS, ACE also has tie up with some

consultancies which gives then resume of some candidates when company asks for

it.


Present employees: ACE also has a policy like JCB to promote or transfer
employees to higher position or to other cities.

SELECTION
Q. What is selection process in your company?

JCB: For management trainees, JeB's selection process is step by step process.
If company is going to recruit candidates through campus selection then first step would be
a written test of candidate followed by group discussion and personal interview. THOMAS
PROFILING is also performed to assess the candidate personal qualities in order to know
its psychometric abilities. The candidate then goes through personal interview with the
concern department.
If the candidate passes the hurdle then receive the offer letter. Likewise, it selects
engineering trainee or diploma engineering trainee.

Escorts: It selects candidates by CV sort listing and campus selection.


If company goes for campus selection in any institute which very rarely happens, it follows
certain steps. In first step, it takes written test followed by group discussion and two rounds
of interviews. In first round, the candidate is interviewed by senior HR personals and in
second round, interviewed by departmental authority.
CV selection: First of all CVs are sort listed either with the help of consultancies or among
CVs available on internet. Then shortlisted candidate go through telephonic interview. At this
level, the list is further refined and refined candidates go through psychometric test which
consists of PI. PI is basically the software with the help of which each student is analyzed in
every department. This software plots the graph of every candidate in each department so
helps in knowing which candidate is good for which department and in which department
they can give their best. PI determines the functional knowledge, technical knowledge and
departmental knowledge of the candidate. After the completion of the procedure candidates
are selected and within 3Q-60days they get their offer letter and call letter.

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ACE: We give an advertisement in news paper then shortlist the candidate and take
personal interview and select among them.

Q. What is the recruitment policy in your company?


JCB: Recruitment policy of our organization changes according to needs in the organization.
Like in present time we prefer to deploy experienced people who match the minimum
requirement.

Escorts: As such no policy has been defined. We deploy people who can best fitted into
the frame but for engineers we prefer people with minimum 2-3 years of experience.
I i I IACE: Recruitment policy of our organization changes according to needs in the
organization. Like in present time we prefer to deploy experienced people who match
minimum requirement.

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The other important HR practice is training and development

TRAINING AND DEVELOPMENT

Training refers to the methods used to give new or present employees the skills they need to
perform their jobs. It is an attempt to improve current or future employee performance by
increasing an employee's ability to perform through learning, usually by changing the
employee's attitude or increasing his or her skills and knowledge. The need for training and
development is determined by the employee's performance deficiency, computed as
Training and Development Need

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= Standard Performance- Actual Performance.

Training and development offer competitive advantage to a firm by removing performance


deficiencies, making employees stay long minimizing scraps and damage and meeting future
employee needs.

Q. What is the process of training activity in your organization?


JCB: At two phases training is given to employees. First-when they join the organization and
second when the organization feels that employee is not able to give his/her best but he/ she
has potential to perform the task.

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On-job training: The main objective of on-job training is to improve worket"s skills and
knowledge while working on it.
Classroom
training:

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In first case after the process of hiring of candidates training is given to them. Every new
member needs training to know and understand his/her job as the person is new to the job.

The main
objective of
this

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Every new employee gets training for different time period which is decided

is to

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and responsibilities.

provide

' performance appraisal and then train them.

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In second case we find the training needs in existing employees through the process of

training

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Escorts: We train our employees at two phases. First when they join the organization

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second when we feel that they need to be nurtured to perform better.

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In first case we train them according to their department and responsibilities and we give
them induction training to get familiar with the organization and employees of the
organization.

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In second case we find training needs through appraiser process. In this process appraise

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who needs training, appraiser who finds training needs and give training and reviewer
whose role is to find that appraise is getting benefitted by the training or not, plays

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important role. Appraiser find training needs and accordingly training is given to employees.

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knowledge

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For different department different type of training is given like for communication sill class
room training is given, for sales on- the -job training is given

to large
group of trainees. This training is generally given to finance and IT people.
Informal We provide training to our employees at two phases. First when they join the organization
training:
induction training is given to them and second when they change their department or job
This
training they are trained according to their job and responsibilities.
is informal means of learning. This type of training is not
arranged by managers but trainees learn in collaboration with their colleagues

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Q. What type of training is given in your organization?


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ACE:ACE conducts three types of training, On-job training, classroom training and
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JCB: First of all we analyze the area of training needs and then different type of training is
given according to needs of employees. Induction training and on job training is common in
our organization.
instruction training.

Escorts:

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Different type of training is given to employees in ESCORTS. Which type of

training should be given to which employee it is decided by employee's performance and


department. On- job training, classroom training and informal training is the most common
training which is given to our employees.

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aining consists of logical sequence of steps and is best taught step by step. This training is

given to engineers before operation of machines.

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Q. What is mail goal of training in your organization?

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JCB: The main goal of T&D in our organization is to make our employees more competent

nurturing their skills and proficiency and the ultimate goal is to maximize profit of

resources.

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Escorts:

employees and to increase the profit without increasing input.

The main goal of T&D in our organization is to enhance the skills of our

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ACE:The motive of T&D is to increase profit in less time and less input by polishing and
nurturing skills of employees.

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Q. What is the duration of training programme in your organization?

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JCB : We conduct induction training for 7-10 days and other training durations are decided

according to need of employees, but generally technical training is given for 3-5 days.

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Escorts: We conduct induction training for 7 days and other training durations are decided

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according to need of employees as well as organization.


ACE: Duration of training is decided according to need and induction training is given for Ii

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7days

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Q. What is the frequency of training programme in your organization?

JCB: We decide it according to performance of employees and generally frequency of


behavioral training, sales training and technical training differs because technical training is
conducted after short period of time and other trainings are conducted after long gap.

Escorts: Technical training is conducted 2 times in a year and other trainings are
conducted according to need.

Q. How is training needs reported and to whom?

JCB: Training need is reported to senior HR person after the process of performance
appraisal

Escorts:

We find training needs through performance appraisal in which individual

performance is measured against the defined benchmark. If we feel that individual


performance is not up to the benchmark, then it is reported to senior HR person in the
organization.
ACE: Training needs is found through the process of performance appraisal and

IS reported

to HR head of the organization.


Trainihg needs is found through the process of performance appraisal and is reported to
HR head of the organization.
The other most important HR practice is to decide wages, salaries and benefits for its
employees.

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WAGES AND SALARY:


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Wage, is the compensation to blue collars, and the wages do not include perquisite like ~
traveling allowance, employer's contribution to provident fund, value of housing :(
accommodation, welfare amenities provided to worker, gratuity payable on discharge,

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overtime allowance, family allowance etc. wages are usua y pai in terms of money soon
after the completion of certain amount of work or certain period of service like one day,

one week,

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or one calendar month. Thus wages can be defined as a monetary compensation


paid by the employer to the worker.

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Salary is monetary compensation to executives and employees in the organization. Salary is

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monthly remuneration.

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Q. can you give some insight regarding wages and salary in your
organization?

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JCB: Wages are paid to contractors and workers on contract by JCB Company.
Salary structure is as under

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Salary Component

Supervisors

Associates

1.

Basic

Different

Different

2.
3.

Dearness Allowance

Same

Same

Same

Same

House-Rent Allowance
-

4.

Personal Allowance

Same

Same

5.

Ad hoc Allowance

Same

Same

6.

Uniform Allowance

Same

Same

7.

Conveyance Allowance

Same

Same

8.

Incentive

Variable*
*Depends

company

Variable*
o
n

the

production

of the

Managers have different type of salary structure. It is mentioned as under:

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S.N.

Salary Component

Supervisors

1.

Basic

2.

Dearness Allowance

70% of basic

3.

House Rent Allowance

Apart from pay

4.

Personal Allowance

Apart from pay

5.

Performance Allowance

Different for workers

6.

Uniform Allowance

Apart from pay

1.

Conveyance reimbursement

Apart from pay

8.

Special Allowance

Apart from pay

9.

Provident fund

12% of basic

Escorts:

Wages are paid to contractors and workers on contract by ESCORTS Company.

Salary structure is as under

S.N.

Salary Component

Supervisors

Associates

1.

Basic

Different

Different

2.

Dearness Allowance

Same

Same

3.

House Rent Allowance

Same

Same

4.

Personal Allowance

Same

Same

5.

Ad hoc Allowance

Same

Same

6.

Uniform Allowance

Same

Same

1.

Conveyance Allowance

Same

Same

8.

Incentive

Variable*

Variable

*Depends on the production of the


company

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Managers have different type of salary structure. It is mentioned as under:

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S.N.

Salary Component

Supervisors

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Basic

1.

Dearness Allowance House Rent

2.

60% of basic Apart

Allowance Personal Allowance

3.

from pay Apart from

Performance Allowance Uniform

4.

pay

Allowance Conveyance

S.

Different for workers Apart

reimbursement Special Allowance

6.

from pay Apart from pay

Provident fund

7.

Apart from pay

8.

12% of basic

9.

ACE: Wages are paid to contractors and workers on contract by ACE Company.
Salary structure is as under
I.

S.
N.
l.

Salary Component

Supervisors

Associates

Basic

Different

Different

2.

Dearness Allowance

Same

Same

3.

House Rent Allowance

Same

Same

4.

Personal Allowance

Same

Same

S.

Ad hoc Allowance

Same

Same

6.

Uniform Allowance

Same

Same

7.

Conveyance Allowance

Same

Same

8.

Incentive

Variable*

Variable*

*Depends
company

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on the

production of the

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Managers have different type of salary structure. It is mentioned as under:

S.N.

Salary Component

1.

Basic

2.

Dearness Allowance

50% of basic

Supervisors

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3.
4.

House Rent Allowance

Apart from pay

Personal Allowance

Apart from pay

5.

Performance Allowance

Different for workers

6.

Uniform Allowance

Apart from pay

7.

Conveyance reimburSement

Apart from pay

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8.

Special Allowance

Apart from pay

Provident fund

9.

BENEFITS

12% of basic

Benefits are indi~ect fin'a~cial and non-financial payments empldye'es receive for continuing

I their

employment with the company. Benefits include things like health and life insurance, pensions, time
off with pay, leaves and childcare facilities.

Q. can

you
give
some
insight
regardi
ng
benefits
in your
organiz
ation?

s consist of following factors in our organization.


Provident Fund: provident fund is the combined collection of employee and employer of the
company. Employee and employer both pay 12% of their salary. Provident fund can be
increased in multiplication of 12, so employee can contribute more than 12%. The new
contribution is called V.P.F.
Insurance benefits: we have tie-up with insurance company and every employee of our
company gets life insurance from that company.
Pay for time not worked: This is one of an employer's most costly benefits, because of the
large amount of time-off that many employees receive. Common time-off with

JCB:
Benefrt

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pay period include holydays, vacations, jury duty and many type of leaves defined below.
There are three types of leaves which can be given in a calendar year
Casual leave:
Casual leave is intended for urgent work or foreseen circumstances.
Maximum casual leave that can be availed at a stretch at any time is three days.
CL is credited to the employee's leave account at the beginning of the year.

Sick leave:
Application of sick leave for more than two days must be supported by a medical certificate
issued by a Registered Doctor.
Sl is credited to the employee's leave account at the beginning ofthe year.

Ea rned leave:
ill

f.

It can be availed minimum of three days at a time and maximum of three times.in a year.
El can be taken for less than three days if Sl and Cl have exhausted.
El is credited to at the beginning of the following year

Other than these leaves our organization allows many other leaves which are benefit for the
employees. These leaves are

Advanced earned leave:


Advanced earned leave is granted in following contingencies
Hospitalization or death of any member in the family.
Accident leading to immobilization of self.
Riots, curfew or natural calamity.
Marriage of self/daughter or son.

Maternity leave:

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This is given to those women managers who have worked for minimum of 80 days in twelve
months prior to delivery. It is given for 12 weeks in case of delivery, 6wees in case of
miscarriage from the date of miscarriage. Additional one month is given for sickness arising
out of pregnancy, premature delivery or miscarriage. Maternity medical bonus of Rs 2S0/- is
also given. This leave is normally given 2 times in service-life of the employee.

Long Sickness leave:


Subject to Sl and El standing to the credit of the employee being exhausted, management
may, at its sale discretion, grant this leave up to a maximum of 60 days in the event of long
sickness/ hospitalization.
Other than these benefits one major flexible benefit is facility of canteen. In canteen food is
provided at 30% of the original cost and other 70% is paid by the organization.

Escorts: Concept of provident fund and canteen in ESCORTS is same as in JCB.


Additionally we have a concept of loan as benefit. According to this concept we provide our
employees loan up to, 2S000@1% loan up to 100000@9% or at the payment of SOO/month.
We also give insurance. benefits to our employees. We practice workers compensation
whiCh provides income and medical benefits to work related accident victims or their
dependents regardless of their fault.
We also give our employees Hospitalization, Health and Disability Insurance

which helps I to

protect against hospitalization cost and the loss of income arising from off-the-job accidents or
illness.

ACE: We provide our employees PF, canteen facility and insurance benefits. All employees
working in ACE are given medical insurance which helps against medical cost in case of
illness or accident in the organization.
We practice Fair labor Standard Act (1938) which speaks about minimum wages, maximum
no. of hours, overtime pay and child labor protection.

The other important HR practice of any plant is industrial relation or legdl department.

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INDUSTRIAL RELATION
Industrial relation is concerned with the relationship between management and workers and the
role of regulatory mechanism is resolving any industrial dispute. A formal definition is
"concerned with the system, rules and procedures used by unions and employees to determine
the reward for effort and other conditions to employment, to protect the interest of employees
and their employers, and to regulate the ways in which employer treat their employees."

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iI

Specifically, IR covers following areas:


Collective bargaining

II

Role of unions, management and government

:j

I:

Machinery for resolution of industrial disputes


Individual grievance and disciplinary policy and practice
Labor legislation

Q. How is industrial relation works in your organization?

JCB: IR department of our company takes care of its human resource.


Company is providing insurance to its employees under EMPLOYEE STATE INSURANCE
ACT, which covers their accidents and losses within the company premises.
Company has its own legal advisor to look after the legal aspects of the company.
Labour health is kept in mind during company procedures.
Uniforms are provided by the management and maintenance is also provided.

Escorts: It has its own legal adviser to look after the legal aspects of the company.
In our company, labour welfare and safety is done under the Factory Act (1948), in which
cashless medical services are provided to its employees.

ACE: It

follows group life insurance which provides lower rates for the employer or the

employee and includes all employees including new employees, regardless of health or
physical condition.

19

'II,

ii

Ii

Company has legal advisorfor legal aspects of the company.


Labour health is the prime concern of the company and for it; company provides good
working condition, neat and clean canteen facility and pure drinking water.

Q.How do you handle industrial disputes in your organization?


JCB: We have legal advisor and we go according to his advice.

Escorts: We go according to the advice of legal practitioner.


ACE: We follow advices of legal advisor.

The other important HR practice is performance appraisal.

I..1

PERFORMANCE APPRAISAL
Performance appraisal is an objective assessment of an individual's performance against
defined benchmark.
It is the systematic evaluation of the individual with respect to his or her performance on the job
and his or her potential for development.
Performance appraisal offers competitive advantage to a firm by improving performance,
helping to make correct decisions, ensuring legal compliance, minimizing job dissatisfaction and
ensuring consistency between organizational strategy and behavior.

Q. Is there any systematic process for performance appraisal in your


organization?
JCB: Very simple procedure is being practiced in the company for performance appraisal
Performance appraisal form is filled. In this form key responsibility area is decided in the
beginning of the year. So the achievement and deviation from these decided areas are noted
and training needs are found and then employees are provided necessary training for the
better performance of the job.

20

360 -degree appraisal system is used in JCB Company. It is the method of performance
appraisal in which superiors, peers, subordinates and clients rate an employee's
Performance. ~

Escorts:
~
J

We prepare a performance appraisal form in which we define key responsibility

area in beginning of the year and then we give this form to employees. Then we look for
deviation from the benchmark. We follow 180 degree appraisal system.

ACE:A specific appraisal form is prepared for this which includes two sections. One is for
and other part is for self appraisal. After receiving this we compare both and
conclude the variations. Then another form is prepared which is filled by another
department heads and many subordinates and superiors then conclude all these details.

I .HOD

I
I
'1

Q.How performance appraisal of employees helpful in your organization?


JCB: Performance appraisal highlights week areas of employees and then we train them
in that area.

Escorts:
We train appraisal
our employees
in their
week
areas
after the process
of performance
ACE:
Performance
highlights
week
areas
of employees
and then
we train them in
appraisal
that
area. and so, performance appraisal helps in supporting company's strategic aims.

Q. What methods of performance appraisal you follow in your


organization?

JCB: We follow 360 degree feedback and graphic rating scale method

Escorts:

We follow 180 degree feedback and graphic rating scale method

ACE:We follow 360 degree feedback and graphic rating scale method

21

I
I_

Q.w
h
a
t

HUMAN RESOURCE INFORMATION SYSTEM


Human resource information system is a computerized information package that provides
management with increasing capacity of record, store manipulate and communicate information

Escorts: We have

widely, with access to many users.

welfare facility like


welfare trust

A human resource information system is systematic procedure for collecting storing,

which provide

maintaining retrieving and validating data needed by an organization about its human

loan to its

resources. The HRIS need not be complex or even computerized. But computerization has

employees at

its own advantage of providing more accurate and timely data for decision making.

Ii

The areas of application of HRI5 are many. Some of them include training management, risk

I IWe also provide

management,

administration,

~medical insurance

compliance with government and legal requirement, attendance reporting and analysis, financial

called Raksha TP

turnover

analysis,

succession

planning,

flexible

benefit

planning and other related areas.

Q. do you use HRIS in your organization?


'I
JCB: Yes, because it minimizes the workload, provides accurate data and makes our
easy.

Escorts:

Ii
iII i
h

I , worx

No, we do not use HRIS. Earlier it was used in organization but after some time

w,e found that maintenance cost and cost of training to its employees about use of HRiS was
more than expected. 50 now we work in MS-access and ms-excel.

j
I

nominal rate.

and insurance
dispensary
within
organization.
ACE: Our
welfare facility
covers

mediclaim,

cashless hospitalization and insurances of employees

ACE: No, we work in MS-access and ms-excel.


Some other questions regarding HR practices which I asked to JCB and its competitors

CORPORATE
SOCIAL

ESCORTS and ACE

y
o
u
r
k
e
y
b
u
s
i
n
e
s
s
o
b
j
e
c
t
i
v
e
?
J

RESPONSIBILITY
WELFARE

i
s

Nowaday,
companies are
contributing their efforts for social work for own good bra nd name.

C
B
:
O

JCB: Company is providing lots of welfare facilities which includes cashless hospitalization,
mediclame, insurance, hygienic working condition and in-house dispensary. It arranges lots

JCB: It has

ur

of activities for children and ladies and also celebrates family day.

adopted a

village, 12 Km.

from ballabhgarh plant, Haryana. This village has been suffering from lots of problem like

shortage of drinking water, villager are getting very filthy water so company is helping this

village to getting rid of this problem. Also, it has adopted a government school to provide

quality education to its children free of cost.

22
Escorts: It has adopted a society called "Escort for society" or "USD" society. This society is
for poor children and the members of the society are surgeons from AIIMS.

si
n
e
s

business objective is -Monopoly in the market.

ACE: Our key business objective is to provide quality products.

-.,

b
j
e

Q.How do you maintain safe, healthy and happy workplace?

JCB: We have our security office which is headed by ex--eaptain from armed forces. This security

ti

office is responsible for disciplinary controls and fire handling at the plant or office. We have also

separate group of firemen, trained properly; to get rid of any fire related emergencies.

We maintain happy workplace by good boss-subordinate relationship

i
s
t

23

o
b
e
c
o

..

i.il

a
m
a
r
k
e
t
l
e
a
d
e
r.
E
s
c
o
rt
s
:
O
u
r
k
e
y

j
,

"Escorts: To maintain safe workplace in our organization we have maintained security office at
the main gate of the plant and corporate office which is headed by ex-captain from armed forces.
Other than this company has CCTVs installed at all important locations including entry and exit
gates, cash dispersal area, assembly lines, stores and canteen and various other departments
where the security head feels he need to keep an eye. Apart from this we have fire handling
facilities.
We maintain happy workplace by boss-subordinate relationship and providing satisfactory salary

to employees.

ACE: Better relationship between employees and employer is the main factor we generate
for happy workplace. Better career opportunities and Better work culture is also an important
factor which we make for happy workplace. For safety we have our own security office.

I
II

Q. Do you believe in highlighting performers?


JCB: Yes, because it encourages other people to perform.

Escorts: Yes, because it creates environment for other employees to perform.


ACE: Yes, because these performers work as motivational factor for other employees .

. " Q. Is open book management style helpful for your organization?

JCB: Yes, because it makes possible sharing of information about contracts sales or new
clients. So, it helps maintaining transparency in the organization.

Escorts: Yes, open book management style is helpful in our organization because we can
share company policies, employee's personal data and information about contracts so it is
helpful in maintaining stub information as well as maintain transparency.

ACE: Yes, it is like distributed operating system. Anybody can retrieve the data of any person or
any department and work on that.

24

Q. What is the most common reason for outsourcing in your organization?

JCB: Outsourcing reduces liability of the company and also it reduces cost to the company
but we rarely do it.

Escorts: We generally outsource for clerical and nonprofessionals because it reduces cost
and liability of the company.
ACE: nil now, we have NOT done outsourcing.

Q. What is the most common factor in your organization which leads to employee's

satisfaction?
JCB: It is paymaster among its competitors which satisfies its employees.

Escorts: Flexibility, easy approach and retrenchment leads to employees satisfaction.


ACE: Better work culture, variety of products and progress of the company.

25

Conclusion
This project helped me in making the conclusion that JCB and its competitors Escorts and Ace following well
planned and easily executable procedures in the company which shows that HR practices of JCB, Escorts and
ACE is very good and they all are giving tough competition to each other. All these three companies are running
properly because of right guidance of managers and also with proper coordination and synchronization of
company staff. And the main conclusion which I found is
JCB is the paymaster among its competitors
Working day of JCB is from Monday to Friday whereas for Escorts and ACE it is from Monday to Saturday.
Recruitment and selection procedure in all these three companies is similar.

Performance appraisal system is similar in all three companies is similar but Escorts PCOCI. :.'; is little better
among three.
JCB and Escorts is playing a role in CSR but ACE is not there in the list.
!

I am really thankful to the staff of all three companies as they have given their precious time to tell me about
the company, company policies and HR practices. This support has helped me a lot in knowing these
organizations.

il
1

il

II

Ii

26

BIBLIO GRAPH Y
1.Human resource management (10

th

edition). Gary Dessler

2.Human resource Management and human Relations. V.P. Michael


3.Principles of Management (Second edition). P.c. Tripathi & P.N. Reddy
4.Harward Article on Performance Appraisal
5.Websites:

www.hrworld.com
www.managersonline.com
www.apexplacementservices.com

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