A PROJECT REPORT

ON
A STUDY ON ENHANCING HR PRACTICES IN A SMALL
ORGANISATION
IN
SRI VENKATESHWARA PIPES LIMITED
In partial fulfillment of the requirements for the award of the degree in
MASTER OF BUSINESS ADMINISTRATION
By Osmania University, Hyderabad- 500007
Submitted by

PINKY REDDY.P
H.T.No. 07107101

To

Osmania university

MALLA REDDY INSTITUTE OF MANAGEMENT

(Affiliated to Osmania University)
MAISAMMAGUDA, DHULAPALLY,
SECUNDERABAD 500014.
2007-2009

DECLARATION
I hereby declare that all the information provided in this
project A STUDY ON ENHANCING HR PRACTICES IN A SMALL
ORGANIZATION is authentic and true to my knowledge and is prepared
on the basis of my study and observations on company called SRI
VENKATESHWARA PIPES. LTD with the companys consent.
I here by confirm that the project is designed and has been submitted
by me to the department of business management, to

MALLAREDDY

INSTITUTE OF MANAGEMENT, and it is not submitted to any other

University or Institution for the award of any Degree/Diploma certificate at
any time before.

Name and Address of the Student:

Signature of the Student

P. Pinky Reddy
H.No- 5-7/16, devi nagar road no-1
Kukatpally, Hyderabad

Date:
2

ABSTRACT

The functions and principles of management have been going

through series of changes since World War II and HR in specific has taken an active role in
modern economy. Henceforth this project focuses on bringing up some specific and
important theories and its applications in real time practices. This project is competent
enough to benefit students who can draw a comprehensive line between theories and its
implementations processes; it may also benefit the organization I worked in accomplishing
this project.
The project mainly focuses and describes implementation of HR in
an organization where there is no proper structure and departmental segregation. The
project focuses on showing the present scenario and the possible scenario if the HR & its
structure is implemented. It is a comparison in every step which gives insights to the users.
It shows the utilization or applications of management theories and principles. Though
implementation of theories sounds idealistic there seems to be a break even which benefits
the organization if implemented. Ultimately the main concern of the organization is to
survive in the business in long run and meet challenges which are possible if the foundation
is strong. Henceforth it becomes imperative and vital to implement HR and analysis for the
continual improvement in any organization.
The concept HRM assumes immense importance as HRM plays a
vital role in meeting challenging requirements of high skilled and competent HR due to
globalization.

AKNOWLEDGEMENT

I deem it as a pleasure to express sincere and deep sense of gratitude

to all the people who have contributed for accomplishing my project.
It is a great pleasure to bring out this project as my thesis which
would benefit many due course of time. Firstly I would like to express gratitude to all the
faculty members without whom this project would never be accomplished.
My sincere thanks to project guide Mrs.Sumalatha for persistent
guidance and suggestions. My sincere thanks to our beloved Principal Dr. P. Srinivasa
Shastry for providing this great opportunity.
Last but not the least; I would like to express my gratitude to my
external guide Mr. N.Vijith Reddy who has been a great support during my project.

CONTENTS
CHAPTER

NAME OF THE TOPIC

PAGE NO

OBJECTIVES

NEED OF THE STUDY

RESEARCH METHODOLOGY

LIMITATION

CHAPTER-I

CHAPTER- II

REVIEW OF LITERATURE

5-39

INDUSTRY PROFILE

40-47

COMPANY PROFILE

48-50

CHAPTER- III

CHAPTER- IV

ANALYSIS AND INTERPRETATION

51-56
FINDINGS

CHAPTER- V

57-59

CONCLUSION

60

SUGGESTIONS

61

BIBLIOGRAPHY

62

APPENDIX

63-67

CHAPTER 1

OBJECTIVES

The objectives of the study are:

To study HR practices in a small company.
The analysis emphasizes on the importance of Human Resource and its importance
as a functional segment in the organization.
To take up the challenging and interesting topic which triggers my passion.
To suggest the need for enhancing the current HR practices in a small company.

NEED OF THE STUDY

The need of the study is as follows:
It will benefit to my knowledge in a way that, how the class room lectures that can
be used practically in an organization. Inspite of the time constraint, it will help us
in knowing about how the HR practices are implemented in a particular
organization.
This project will benefit the organization in a way that, how the employees really
feel about the organization through the survey done by us. The suggestions made
by us can do some improvements in the organization.
This project need is to know how really small companies are giving importance to
their human capital & how optimally they are utilizing them to reach their
organizational goals.

RESEARCH METHODOLOGY

The study was carried out through the following ways:

Primary source: (i) Using questionnaires
(ii) Through direct personal interviews with the middle level
management.
Secondary source: It is gathered from text books, websites, journals, company
records.

The sample size consists of 20 from middle level management.

Questionnaires of 24 questions are designed to gather the information. This consists of
open-ended and close-ended. Percentages are calculated for analyzing the close-ended
questions. And these are represented by using pie charts.

LIMITATIONS

The research conducted and the analysis drawn is completely on the basis of the
situational responses.
Time acts as the major factor in the implementation process as the initial cost in
establishing a functional segment in an organization is higher.
This research is just an overview of the HR practices; it does not give the
knowledge in depth.

10

CHAPTER 2
REVIEW OF LITERATURE

11

INTRODUCTION
ENHANCING HUMAN RESOURCE PRACTICES IN A SMALL
ORGANIZATION
The importance of human resource practices is being
increasingly realized in industrial and non-industrial organizations both in India and
abroad. This realization has come about because of increasing complexity of the task
managers and administrators. In most of the organizations the problem of getting the
competent and relevant persons, retaining them, keeping up their motivation and morale,
and helping them to both continuously grow and contribute their best to the organizations,
are now viewed as the most critical problems. With the changes in the social climate,
values and norms, changes are also seen in the employees who join the organization today.
Their expectations are different, they have different values and norms and they are certainly
more competent and more informed than employees in the past. While these can be great
assets to the organization, they become if the organization is not able to manage human
resources properly.
According to Leon C.Megginson, the term human resource
can be thought of as, the total knowledge, skills, creative abilities, talents and aptitudes of
an organizations workforce, as well as the value, attitudes and beliefs of the individuals
involved. The term human resource can also be explained in the sense that it is resource
like any natural resource. It does mean that the management can get and use the skills,
knowledge, abilities etc., through the development of skills, tapping and utilizing them
again and again. Thus, it is along term perspective where as personnel is a short term
perspective.

12

Human resources are also regarded as human factor, human asset, human capital and the
like.
The terms labor and the manpower had used widely denoting mostly the physical abilities
and capacities of employees. The term personnel had been used widely in the recent past to
denote persons employed in any services. Thus, this term denotes the employees as a whole
but it does not clearly denote various components of human resources like skill,
knowledge, values etc.
The principal component of an organization is its human
resources or people at work. Human resource have been defined as from the national
point of view, the knowledge, skills, creative abilities, talents and aptitudes obtained in the
population; where as the view point of the individual enterprise, they represent the total of
the inherent abilities, acquired knowledge and skills as exemplified in the talents and
aptitudes of the employees.

Nature and scope of human resources:

People in any organization manifest themselves, not only
through individual sections but also through group interactions. When individuals come to
work place, they come with not only technical skills, knowledge etc., but also with their
personal feeling, perceptions, desires, motives, attitudes, values etc. Therefore, employee
management in an organization does mean management of not only technical skills but also
other factors of the human resources.
A close observation of employees reveals that they are
complex beings, i.e., physiological, psychological, sociological, and ethical beings. The
proportions or intensities of these dimensions of the human factor in employment may
differ from one situation to another but the fact remains that these are the basic things of
the human factor in organizations.
13

Undoubtedly the physical and the mental attributes of human resources are highly pertinent
to organizational performance and productivity.
Further it is important to note that the employees in any
organization are not to be viewed as static individuals since the quantity as well as quality
of human resources is modified by such environmental factors as education, training,
development etc. Hence the handling of human resource is entirely different from that of
other resources. If human factor is properly utilized, it may even prove a dynamic motive
force for running an organization. Otherwise it becomes a passive and destructive force
I want to extend the benefits of having a formal HR department to Sri Venkateshwara
Pipes.Ltd which does not have one.

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EMPLOYMENT AND DEVELOPMENT OF PERSONNEL

Lets see the importance of some Human Resource practices
that comes under EMPLOYMENT AND DEVELOPMENT OF PERSONNEL.

HUMAN RESOURCE PLANNING:

In the words of Coleman Human Resource planning is the
process of determining man power requirements and the means for meeting those
requirements in order to carry out the integrated plan of the organization. Thus we can say
that Human Resource planning consists in projecting future man power requirements and
developing manpower plans for implementing of the projections. Human Resource
planning helps the management to have the right number and the right kind of people at the
right place, at the right time, to do things, which result in both the organization and the
individual receiving the maximum long range benefits.
It will be noted that manpower planning consists in
projecting future manpower requirements and development of manpower plans for the
implementation of the projections. This planning cannot be rigid or static; it is amenable to
modification, review and adjustments in accordance with the needs of the organization or
the changing circumstances.

15

NEED FOR HUMAN RESOURCE PLANNING

Human Resource planning is deemed necessary for all organizations

for one or the other of the following reasons:
To carry on its work, each organization needs personnel with necessary
qualifications, skills, knowledge, work experience and aptitude for work. These are
provided through effective Human Resource planning.
Since a large number of persons have to be replaced who have grown old, or who
retire, die or become incapacitated because of physical or mental ailments, there is a
constant need for replacing such personnel. Otherwise the work would suffer.
Human Resource planning is essential because of frequent labor turnover which is
unavoidable because it arises from factors which are socially and economically
sound such as voluntary quits, discharges, marriages, promotions; or factors such as
cyclical fluctuations in business which cause a constant movement and flow in the
workforce in many organizations.
In order to meet the expansion programs.
The nature of the present workforce in relation to its changing needs also
necessitates the recruitment of new labor. To meet the challenge of a new and
changing technology new techniques of production, existing employees need to be
trained or new blood is injected in to the organization.
Human Resource planning is also needed in order to identify areas of surplus
personnel or areas in which there is shortage of personnel. If there is surplus, it can
be redeployed; if there is shortage, it may be made good.

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RECRUITMENT

Recruitment forms the first stage in the process, which continues

with selection and ceases with the placement of the candidate. It is the next step in the
procurement function, the first being the HR planning. Recruitment makes it possible to
acquire the number and the types of people necessary to ensure the continued operations of
the organization. Recruiting is the discovery of potential applicants for actual or anticipated
organizational vacancies. In other words, it is a linking activity bringing together those
with jobs and those seeking jobs.

Recruitment has been regarded as the most important function of

HRM, because unless the right types of people are hired, even the best plans, organization
charts and control systems would not do much good. Flippo views recruitment both as
positive and negative activity. He says: it is a process of searching for prospective
employees, stimulating and encouraging them to apply for the jobs in an organization. It is
often termed positive, that it stimulates people to apply for jobs to increase the hiring
ratio. That is the number of applicants for the job. Selection on other hand tends to be
`negative because it rejects a good member of those who apply, leaving only the best to be
hired.

17

RECRUITMENT POLICY:

Such a policy asserts the objectives of the recruitment and provides a

framework of implementation of the recruitment programme in the form of procedures. As
Dale Yoder and others observe: such a policy may involve a commitment to broad
principles such as filling vacancies with the best qualified individuals. It may embrace
several issues such as extent of promotion from within, attitudes of enterprise in recruiting
its old employees, handicaps, minority groups, women employees, part time employees,
friends and relatives of present employees. It may also involve the organization system to
be developed for implementing recruitment programme and procedures to the employed.
According to Yoder, the recruitment policy is concerned with quantity
and qualifications of manpower. It establishes broad guidelines for the staffing process.
Generally the following factors are involved in a recruitment policy:

To carefully observe the letter and spirit of the relevant public policy on hiring and,
on the whole, employment relationships;

To provide individual employees with the maximum of employment security,

avoiding, frequent lay-off or lost time ;

To provide each employee with an open road and encouragement in the continuing
development of his talent and skills;

To assure each employee of the organization interest in his personal goals and
employment objectives;

18

To assure employees of fairness in all employment relationships, including

promotions and transfers;

To avoid cliques which may develop when several members of the same household
or community are employed in the organization;

To provide employment in jobs which are engineered to meet the qualifications of

handicapped workers and minorities; and

To encourage one or more strong, effective, responsible trade unions among the
employees.

19

SELECTION

The selection procedure is concerned with securing relevant information about an

applicant. This information is secured in a number of steps or stages. The objective of
selection process is to determine whether an applicant meets the qualifications for a
specific job and to choose the applicant who is most likely to perform well in that job.

Selection is a long process, commencing from the preliminary interview of the

applicants and ending with the contract of the employment.

The hiring is not a single act but it is essentially a series of methods or stepa or
stages by which additional information is secured about the applicant. At each stage, facts
may come to light which may lead to the rejection of the applicant. A procedure may be
compared to a series of successive hurdles or barriers which an applicant must cross. These
are intended as sreens, and they are designed to eliminate an unqualified applicant at any
point in the process. This technique is known as the successive hurdle technique. Not all
selection process includes all these hurdles. The complexity of a process usually increases
with the level and responsibility of the position to be filled.

20

According to Yoder, the hiring process is of one or many go, no-go gauges.
Candidates are screened by the application of these tools. Qualified applicants go on to the
next hurdle, while the unqualified are eliminated. Thus, an effective selection programme
is a non-random process because those selected have been chosen on the basis of the
assumption that they are more likely to be better employees than those who have been
rejected.

SELECTION POLICY

While formulating a selection policy, due consideration should be given to

organizational requirements as well as technical and professional dimensions of selection
procedures. Yoder and others have suggested goals, technological issues, cost factors,
extent of formality, etc. in other words, an effective policy must assert the why and
what aspects of the organizational objectives

21

TRAINING AND DEVELOPMENT

The terms training and development are sometimes used
interchangeably and at others distinguished and treated separately. Training is the creation
of an environment where employees obtain or learn specific job related behaviors,
knowledge, skills, abilities and attitudes. If one wishes to differentiate training from
development, it would be that training aims at helping employees perform better on their
current job whereas, development refers to a future oriented investment in employees.
Development is based on the fact that an employee will need an evolving sets of tools,
including knowledge, skills and abilities to perform in the succession of positions he/she
will during his/her career.
The main purpose of training and development is to do
away with performance deficiencies whether correct or anticipated, that causes employees
to perform at less than the desired level. The training and development can make several
contributions in organizational development, like reduction in learning time to reach
acceptable performance, improved performance on the present job, attitude formation etc,
aid in solving operational problems, serve manpower needs, employees motivation,
reduction of mistakes, task expertise, increased productivity and so on and so forth.
Every organization needs to have well trained and
experienced people to perform the activities that have to be done. If the current or potential
job occupant can meet this requirement, training is not important. But when this is not the
case, it is necessary to raise the skill levels and increase the versatility and adaptability of
the employees. Inadequate job performance or a decline in productivity or changes
resulting out of jobs redesigning or a technological breakthrough require some type of

22

training and development efforts. As jobs become more complex, the importance of
employee development also increases. In a rapidly changing society, employee training and
development are not only an activity that is desirable but also an activity that an
organization must commit resources to if it is to maintain a viable and knowledgeable
workforce.
Taining, education and development are three terms
frequently used. On the face of it, there might not appear any differences between them, but
when a deep thought is given, there appears some differences between them. In all
training there is some education and in all education there is some training. And the
two processes cannot be separated from development. Precise definitions are not possible
and can be misleading; but different persons have used these activities in different ways.
Training is the responsibility of four main groups;
a) The top management, which frames the training policy;
b) The personnel department, which plans, establishes and evaluates instructional
program;
c) Supervisors, who implement and apply developmental procedures; and
d) Employees, who provide feedback, revision and suggestions for corporate
educational endeavors.
Training is a sequential activity. It includes several components like
organizational objectives, training needs, trainee, trainer, course material and content,
instructional strategies and aids and evaluative instruments.
Preparing a training model mainly includes the following decisions:

Determining the training needs and objectives;

Translating them into programs which meet needs of the selected participants;

Evaluating the results.

23

PERFORMANCE APPRAISAL

Performance appraisal is a very critical HRD

mechanism with different focus and purpose. It refers to all the formal procedures used in
working organizations to evaluate the behavior, contributions and potential of the group
members. In the past it was evaluation of merit/performance of the individual, thus it was
traditionally used as a mechanism of controlling employees through salary administration,
reward administration, promotion and disciplinary action. These were in the form of
confidential reports. These evaluations emphasized on employees merit like initiative,
dependability, personality etc,. but this was however open tom question as the connection
between the performance and possession of traits was doubtful.

In the modernization process, the scope was further

extended to objective-centered approach which initially was people-centered approach.
Peter. F. Drucker popularized this phrase management by objectives (MBO). This is a
process in which the goals are set between the superior and the subordinate with feedback
of results as the cornerstone of MBO. It is best described as the goal-setting through mutual
participation and agreement by superior and subordinate for the purpose of raising
managerial and organizational goal achievement.

24

With the realization of importance of the human resource in an

organization, it was felt that effective functioning of the performance appraisal system
depended on a level of trust and commitment to the development of the employees in any
organization. This view presupposes congruence between the goals of individuals and the
organizational needs as the individual goals are taken care of with organizational goals.
Performance appraisal is an effective instrument for helping people grow and develop, it
can be used an effective mechanism of continuing education and learning from one another.
Development oriented performance appraisal and review system when effectively practiced
substantially contribute to the organizational health and facilitates multiplication of
organizational responsibilities.

25

WAGE AND SALARY ADMINISTRATION

Wage and salary administration refers to the establishment and
implementation of sound policies and practices of employee compensation. It includes such
areas as job evaluation, surveys of wage and salaries, analysis or relevant organizational
problems, development and maintenance of wage structure, establishing rules for
administering wages, wage payments incentives, profit sharing, wage changes and
adjustments, supplementary payments, control of compensation and other related items.
Organizations expect efficient performance from their employees in
order to contribute to the attainment of the individual goals. Organizations reward their
employees who contributed to the achievement of organizational goals.

Effort

Performance

Organizational
goals

Individual goals

Rewards
Rewards and Motivation

A sound wage and salary administration tries to achieve these

objectives:
(a) For employees: (i) Employees are paid according to the requirements of their jobs, i.e. ,
highly skilled jobs are paid more compensation than low skilled jobs. This eliminates
inequalities.
(ii) The chances of favoritism are greatly minimized.

(iii) Job sequences and lines of promotion are established wherever they are applicable.
26

(iv)Employees morale and motivation are increased because a wage programme can be
explained and is based upon two factors.
(b) To employer: (i) They can systematically plan for controlling their labor costs.
(ii) In dealing with a trade union, they can explain the basis of their wage programme
because it is based upon a systematic analysis of job and wage facts.
(iii) A wage and salary administration reduces the likelihood of friction and grievances over
wage inequalities.
(iv)It enhances an employees morale and motivation because adequate and fairly
administered wages are basic to his wants and needs.
(v) It attracts qualified employees by ensuring and adequate payment for all the jobs.

Administration of wage and salary:

Wage and salary administration should be controlled by some proper
agency. This responsibility may be entrusted to the personnel department or to some job
executive. Since the problem of wages and salary is very delicate and complicated, it is
usually entrusted to a committee composed of high ranking executives representing major
line organization. The major functions of such committee are:
(i)

Approval and/or recommendation to management on job evaluation methods

and findings;

(ii)

Review and recommendation of basic wage and salary structure;

(iii)

Help on the formulation of wage policies from time to time;

(iv)

Co-ordination and review of relative departmental rates to ensure conformity;

and

(v)

Review of budget estimates for wage and salary adjustments and increases.

27

JOB EVALUATION
Job evaluation is the output provided by job analysis. As seen earlier,
job analysis describes the duties of a job, authority relationships, skills required, conditions
of work and additional relevant information. Job evaluation on other hand, uses the
information in job analysis to evaluate each job- valuing its components and ascertaining
relative job worth. It involves, in other words, a formal systematic comparison of jobs in
order to determine the worth of one job relative to another , so that a wage or salary
hierarchy results. So it is a process by which jobs in an organization are evaluated.

The I.L.O defines job evaluation as an attempt to determine and

compare demands which the normal performance of a particular job makes on normal
workers without taking into account the individual abilities or performance of the worker
concerned.
We may define job evaluation as a process of analyzing and
describing positions, grouping them and determining their relative value by comparing the
duties of different positions in terms of their different responsibilities and other
requirements.

When jobs are evaluated, the relative worth of a given collection of

duties and responsibilities to the organization is assessed. This process is adopted to help a
management to maintain high levels of employee productivity and employee satisfaction. If
job values are not properly studied, it is very likely that jobs would not be properly priced.
i.e. , high valued jobs may receive less pay than low-valued jobs.

28

When employees realize that this is happening, they become

dissatisfied. They may leave the organization, reduce their efforts or perhaps adopt other
modes of behavior detrimental to the organization. Therefore, in modern society, a great
deal of attention is paid to the value of a job. What a particular job should be paid is greatly
influenced by the value of judgment about the worth of a job. In other words, a person is
paid for what he brings to a job- his education, training and experience provided that these
are related to the requirements of the job which he is assigned.

Objectives of Job Evaluation:

The following are the objectives of the job evaluation:
(i)

To gather data and information relating to job description, job specification

and employee specifications of various jobs in an organization

(ii)

To compare the duties, responsibilities and demands of a job with that of

other jobs

(iii)

To determine the hierarchy and place of various jobs in an organization.

(iv)

To determine the ranks or grades of various jobs.

(v)

To ensure fair and equitable wages on the basis of relative worth or value of
jobs. In other words equal wages are fixed to the jobs of equal worth or
value.

(vi)

To minimize wage discrimination based on sex, age, caste, region, religion,

etc.

29

Employee benefits and services

Management is concerned with attracting and keeping
employees, whose performance meets at least minimum levels of acceptability; and
at keeping absenteeism and turnover to tolerable levels. The provision of
benefits and services can be and are important in maintaining the employees and
reducing or keeping turnover and absenteeism low.
It is important to note that financial incentives are paid to
specific employees whose work is above standard. employee benefits and services
on the other hand, are available to all employees based on their membership in the
organization. The purpose of such benefits and services is to retain people in the
organization and not to stimulate them to greater effort and higher performance.
They foster loyalty and act as a security base for the worker.
These benefits are usually known as fringe benefits as
they are offered by the employer to the employee as a fringe. Different terms
have been used for these benefits, such as fringe benefits, welfare expenses,
wage supplements, subwages or social charges, perquisites other than
wages, or transpecuniary incentives.
It is difficult to define what o fringe benefit is, for there is no
agreement among the experts on its precise meaning, significance or connotations.
The chief area of disagreement is between wages and fringe on the one hand
and between fringe and company personnel services on the other. Ther are also
differences on whether the benefits which have been legally provide for should be
included among the fringes.

30

Objectives:

As organization designs and establishes a benefit-andservice programme to achieve the

following ends:
(a)To keep in line with the prevailing practices of offering benefits and services which are
given by similar concerns;
(b) To recruit and retain the best personnel;
(c)To provide for the needs of employees and protect them against certain hazards of life,
particularly those which an individual cannot himself provide for;
(d) To increase and improve employee morale and create a helpful and positive attitude on
the part of the workers towards their employees;
(e)To make the organization a dominant influence in the lives of its employees with a view
to gaining their loyalty and co-operation, encouraging them to greater productive efforts;
(f) To improve and furnish the organizational image in the eyes of the public with a view to
improving its market position and bringing about product acceptance by it;
(g) To recognize the official trade unions bargaining strength, for a strong trade union
generally constrains an employer to adopt a sound benefit-and-services programme for his
employees.

31

EMPLOYEE SERVICES
In addition to the fringe benefits, organizations also provide a
wealth of services that employees find desirable. These services are usually provided by the
organization at no cost to the employee or at a significant reduction from what might have
to be paid without the organizations support.

These services are provided at the discretion of the

management and are generally of some concern to trade unions when they engage in
collective bargaining with the employees. These services include:

Services related to the type of work performed, including subsidies for the purchase
and up keep of work clothing and uniforms and of the various types of tools used by
a worker in the course of his work;

Eating facilities, which include the provision of company restaurants, cafeterias.

Canteens, lunch rooms, vending machines, and fully or partially subsidized food;

Transportation facilities, including parking lots and bus services;

Child care facilities, comprising nurseries and day care centers for children;

Housing services, including company-owned housing projects and subsidized

housing;

Financial and legal services, including sponsoring of loan funds, credit unions,
income-tax services, legal aid, saving plans, and group insurance plans;

Purchasing services, such as company-operated stores and discounts on company

products and services;

32

Recreational, social and cultural programmes;

Educational services, which include sponsorship for off duty courses, educational
leave,

tution fee refunds, and scholarships for employees and their children;

Medical services, including plant infirmaries, clinics and hospitals, counseling

services, and referrals to community social services;

Out placement services, which include contacts with other employers in the area,
help in writing up the resumes and secretarial assistance;

Providing flexible work timings.

Problems raised by benefit programs:

When too many benefits and services are offered to the employees, a feeling
develops that employers are playing the role of parents and the workers are looked
upon as their children. Moreover the latter sometimes develop the feeling that these
benefits and services are their right- which is not really so.

The administration of these benefits and services is a fairly costly affair, involving
large outlays of direct and indirect financial expenditure, and often involves a great
deal of paper work.

With increase in these benefits and services, employees, particularly when they are
not very productive, tend to stick to their jobs, and are not interested in changing
them.

When a management becomes more concerned about the provision and

administration of benefits and services, it often pays very little attention to other
aspects of personnel programmes.

33

REWARDS AND INCENTIVES

An incentive or reward can be anything that attracts a

employees attention and stimulates him to work. In other words of Burack and Smith, An
incentive scheme is a plan or programme to motivate individual or group performance. An
incentive programme is most frequently built on monetary reward, but may also include a
variety of non-monetary rewards or prizes.

The use of incentives assumes that peoples actions are

related to their skills and abilities to achieve important longer-run goals. Even though many
organizations, by choice, or tradition or contract, allocate rewards on non-performance
criteria , rewards should be regarded as a pay-off for performance.
An incentive plan has the following important features:
An incentive plan may consist of both monetary and non-monetary elements.
Mixed elements can provide the diversity needed to match the needs of individual
employees.
The timing, accuracy and frequency of incentives are the very basis of a successful
incentive plan.
The plan requires that it should be properly communicated to the employees
encourage individual performance, provide feedback and encourage redirection.

34

Wage incentives
The term wage incentive has been used in the restricted sense of
participation and in the widest sense of financial motivation. It has been defined differently
by different authors. One of them is as follows:
According to Hummel and Nickerson: it refers to all the plans that provide extra pay for
extra performance in addition to regular wages for a job.

Types of wage incentive plans:

Wage incentive plans may be discussed as:
a) Plans for blue-collar workers;
b) Plans for white-collar workers;
c) Plans for managerial personnel; because each of these categories of employees
have separate and distinct needs and specific plans tailored for each category may
prove beneficial.

Non-monetary incentives:
While

non-monetary

incentives

often

appear

as

important

motivators, many factors unrelated money can also serve as attention-getter and
encouragers of action. The classification of such non-financial incentives tends to a
smorgasbord of desirable things that are potentially at disposal of the organization. The
creation of such rewards is only limited by managers ingenuity and ability to assess
payoffs that individuals within the organization find desirable and which are within the
managers jurisdiction.
Following are some examples of non-monetary incentives:

35

 A person with strong need for affiliation may respond readily to job assignments that
provide with opportunities to relate to socially attractive and satisfying individuals or
groups.
The opportunity to communicate with and relate to others is a factor many workers
emphasis and seek.
Persons interested in enhancing their reputations and receiving recognition in the eyes of
others may
Persons proud of their long service may be attracted by awards recognizing their
seniority.
Workers in safety minded organization are often attracted by competition on awards for
best safety performance records.
Individuals proud of their past accomplishments may feel recognized and rewarded if
their superiors extend opportunities for participation on more complex and more
important job assignments.

36

HUMAN RELATIONS
IMPORTANCE OF UNDERSTANDING HUMAN RELATIONS:
Since mans behavior is different from mens behavior, the
manager has to understand- what causes this difference and how to cope up with certain
problems created because of the association of individuals. The association of individuals
has both advantages and disadvantages. A manager with an understanding of human
relations and behavior can make the association of individuals work to the advantage of the
organization.
Scott defined the term human relations as A process of an
effective motivation of individuals in a given situation in order to achieve a balance of
objectives which eill yield greater human satisfaction and help accomplish human goals.
Efficiency of the individuals can be maximized only by
creating and maintaining good human relations among them. For the purpose of
maintaining good human relations a manger may have to acquire knowledge in such
disciplines as psychology and sociology. The manager must realize that the good for
individuals is also good for the organization regarding the maintenance of good human
relations.

Measures to maintain sound human relations:

The following are the measures to promote and maintain human relations:
By promoting honesty among the individuals.
Frankness clears the misunderstanding and restores the good relations. One way by
which this can be promoted is to be frank oneself and appreciate the frankness of
the others.

37

 Effective communication also, in a way improves the relations among people.

Disputes can be effectively handled only when the manager is effective in his
communication.
By developing sensitivity to others feelings and an ability to appreciate others
ideas.
By becoming a good leader the manager can bring cohesion in the group he leads
and thus can contribute to the improvement of the human relations.
By speaking about your own mistakes before criticizing the others.
By requesting the others instead of issuing direct orders.
By training the subordinates with dignity and respect.
By understanding the human needs and giving due weightage in satisfying them.
By helping the in performing their duties.
By wining the people to your way of thinking by means of showing respect for the
other mans opinions and ideas.

What is Motivation?
Motivation is derived from the word motive. A motive is an inner
state that energizes, activates or moves and directs or channels behavior towards the goals.
Motivation is a process of that starts with a physiological and
psychological deficiency or need that activates behavior or a drive that is aimed at a goal or
incentive. Thus the process of motivation lies in the meaning of and relationship among
needs, drives and incentives.
Need
(deficiency)
and

Drives
(deficiency with direction)

Goals/Incentives
(reduction of drives
fulfills deficiency)

The Basic Motivation Process

38

TYPES OF MOTIVES:
Motives are divided into three categories. They are as follows:
Primary motive: these motives are unlearned and physiologically based. They include
hunger, sleep, avoidance of pain, sex and maternal concern.
General motives: these motives are unlearned but not physiologically based. These motives
include curiosity, manipulation and activity motives and the affection motives.
Secondary motives: these motives are closely tied to the learning concept. A motive must
be learned in order to be included in the secondary classification. Important among them
are: achievement, affiliation, power. Security, status and immediate feedback.

TYPES OF MOTIVATION:
There are two ways by which people are motivated. They are as follows:
Positive motivation: people are said to be motivated positively when they are shown a
reward and the way to achieve it. Such rewards may financial or non-financial. Monetary
motivation may include different incentives, wage plans, productive bonus schemes etc.
non-motivation may include praise for the work, participation in management, social
recognition etc. monetary incentives provide the worker a better standard of living while
non-monetary satisfy the ego of a man.

Negative motivation:
By installing fear in the minds of the people, one can get the desired work done. In this
method of motivation, fear of consequences of doing something or not doing something
keeps the worker in the desired direction. This method has got several limitations. Fear
creates frustration, a hostile state of mind and an unfavorable attitude towards the job
which hinders efficiency and productivity. So the use of use it should be kept to its
minimum.
39

JOB SATISFACTION:
Job satisfaction refers to a persons feelings of satisfaction on
the job, which acts as a motivation to a work. It is not the self satisfaction, happiness or
self-contentment but the satisfaction on the job.
Job satisfaction is defined as the, pleasurable emotional state
resulting from the appraisal of ones job as achieving or facilitating the achievement of
ones job values. In contrast job satisfaction is defined as the un pleasurable emotional
state resulting from the appraisal of ones job as frustrating or blocking the attainment of
ones job values or as entailing disvalues.
Job satisfaction is the result of various attitudes the employee holds towards the job,
towards the job related factor and towards the life in general. It is a general attitude, an
attitude which is the result of many specific attitudes which could be classified as under:

Situational factors or specific job factor;

Individual characteristics; and

Group and social relationship outside the job.

Job satisfaction is the ultimate function of all these

individual attitudes put together. Many thinkers consider it is a collective force and not an
unitary phenomenon. A number of material and non material factors contribute to job
satisfaction. Some of these variables play an important role while others play a secondary
role. It is quite difficult to determine the relative importance of any factor influencing job
satisfaction as the importance varies with time and person.

40

The term job satisfaction has been widely confused with attitude and morale.
Although attitude, morale and job satisfaction is related to one another, they are not
synonymous. An attitude is not job satisfaction since job satisfaction since the later is
composed of number of attitudes.
Similarly job satisfaction is not the same as individual morale, although it
may contribute to morale. Morale is a group phenomenon and job satisfaction is an
individual feeling. Morale is generated by the group and it is aby product of the group. Job
satisfaction may contribute to raise the morale but it is not same as morale. Thus it is seen
that satisfaction not only increases efficiency, but also provides interest and motivation for
work. Moreover, it is also conducive to the all round development of the organization,
because directly or indirectly it influences attitude, morale and production level.
Job satisfaction can be measured in two ways. One, by
investigating the specific factors in the job and the resulting attitude. The other, which is
much more comprehensive, includes the overall factors that contribute to satisfaction in
life. Job satisfaction, as pointed out earlier, is a generalized attitude resulting from many
specific attitudes in three areas: specific job factors, individual adjustment and group
relationship. The executive or leader control those factors which produce satisfaction and
dissatisfaction, exhibits various qualities like motivation, communication and so on ton
make an employee feel happy with his job and stay on in the job to contribute to the
organizations success. A satisfied employee participates in the work whole heartedly and it
is the function of the executive to motivate the subordinates and provide the necessary job
environment to satisfy the subordinates.

41

GRIEVANCES:
There is hardly any company or an individual concern, which
functions absolutely smoothly at all times. In some, the employees have complaints against
their employers, while in others it is the employers who have a grievance against their
employees. These grievances may be real or imaginary, valid or invalid, genuine or false.
Broadly speaking a complaint effecting one or more workers constitutes a grievance. The
complaint may relate to the quantum of wages, the mode of payment, payment for overtime
work, leave, interpretation of service agreement, working conditions, promotions, seniority,
transfers, work assignments, dismissal or discharge, or a complaint against a foreman,
against the quality of the plant or the parts used in it, machinery, or the food available in
the canteen. Where the points at disputes are of a general applicability or are of a
considerable magnitude, they fall outside the scope of this procedure, that is, the grievance
handling procedure.
It is rather difficult to distinguish between dissatisfaction, complaint
and grievances. Generally speaking, dissatisfaction is any state or feeling of discontent,
whether it is innate and unexpressed or explicitly expressed. A dissatisfaction is orally
made known by one employee to another is known as a complaint. A complaint becomes a
grievance when this dissatisfaction, which is mostly related to work, is brought to the
notice of the management.

42

On the analysis of various definitions, it may be noted that;

Grievance is a word which covers dissatisfaction and which has one or more of the
following characteristics;

It may be unvoiced or expressly stated by an employee.

It may be written or verbal.

It may be valid or legitimate, untrue or completely false or ridiculous

It may arise out of something connected with the organization or work.

An employee feels that an injustice has been done to him.

CAUSES FOR GRIEVANCES:

Basically the causes for grievances are related in matters like;

Wage handling.

General working conditions.

Promotions and seniority.

Interpretation of service agreements.

Dismissal, discharge or transfers.

Quality of the plant and machinery etc.

43

GRIEVANCE HANDLING PROCEDURE

ARBITRATION

Step 3

Step 2

Step 1

OWNER OR
MANAGER

LOCAL UNION
REPRESENTATIVE

SUPERVISOR

UNOIN STEWARD

EMPLOYEE

GRIEVANCE HANDLING PROCEDURE IN A SMALL COMPANY

44

INDUSTRIAL RELATIONS

TRADE UNOINS:
According to section 2(b) of the trade union act of 1926, a trade
union is any combination of persons, whether temporary or permanent, primarily for the
purpose of regulating the relations between workers and employers, or between workers
and workers, and for imposing restrictive conditions on the conduct of any trade or
business and includes the federation of two or more trade unions.
We may define a trade union as: a continuous and voluntary
association of the salary or wage-earners and engaged in whether industry or trade, formed
for safeguarding the interests of its members, maintaining and improving the conditions of
their working lives, raising their status and promoting their vocational interests; and
securing better relations between them and their employees, through collective bargaining.

PRINCIPLES OF TRADE UNOINISM:

Trade union functions on the basis of three cardinal principles. If any
one of them is threatened or is in jeopardy, they would fight back. These principles are:
i.

Unity is strength. This fact has been very effectively brought out by Longfellow in
the song of Hiawatha:
All your strength is in your union,
All your danger is in your discord;
45

Therefore, be at peace henceforward,

And, as brother, live together.

ii.

Equal pay for equal work or for the same job. This principle is based on one of the
nine
Principles included in the ILOs charter of the freedom of labor, which says:
Men and women should receive equal remuneration for work of equal value.

iii.

Security of service, which enjoins upon trade unions that they ensure social and
economic security for their members.

According to the Trade Union Act of 1926, a trade union must work
to protect and promote the interests of the workers and the conditions of their
employment. The interest of the workers lies in getting reasonable wages, shorter working
hours, improved working conditions- social and psychological- and greater security, both of
person and the job.

46

CHAPTER 3
INDUSTRIAL PROFILE
COMPANY PROFILE

47

INDUSTRIAL PROFILE
INTRODUCTION
Asbestos is a naturally occurring silicate mineral with long, thin fibrous
crystals. The word asbestos is derived from a Greek adjective meaning inextinguishable.
The Greeks termed asbestos the miracle mineral because of its soft and pliant properties, as
well as its ability to withstand heat.
Asbestos became increasingly popular among manufacturers and builders in
the late 19th century due to its resistance to heat, electricity and chemical damage, its sound
absorption and tensile strength. When asbestos is used for its resistance to fire or heat, the
fibers are often mixed with cement or woven into fabric or mats. Asbestos was used in
some products for its heat resistance, and in the past was used on electric oven and hotplate
wiring for its electrical insulation at elevated temperature, and in buildings for its flameretardant and insulating properties, tensile strength, flexibility, and resistance to
chemicals.Asbestos pressure Pipes and Fittings are manufactured out of Chrysotile
Asbestos (Long Fibre Asbestos) and ordinary Portland Cement ranges in different length
and diameter. Generally these are 4 meter in length and 80 degree and 80mm in diameter
and fittings of various designs are 90 degree and above, single equal function and double
equal function.

48

Main uses of asbestos in buildings

Sprayed coatings on steel work, concrete walls and ceilings, for fire protection and
insulation. Lagging: insulation on pipe work, boilers and ducts

Insulation boards: in partitions, fire doors, and ceiling tiles. Common brand names
are Asbestolux, Turnabestos, LDR, and Marinite

Asbestos cement products: sheeting on walls and roofs, tiles, cold water tanks,
gutters, pipes and in decorative plaster finishes

Types of asbestos
There are six different types of asbestos split into two groups. Both groups have the same
hazards and occur as fibres. They are different in their chemistry and in the way they
formed millions of years ago.

Amphibole group
Crocidolite (blue asbestos), amosite (brown asbestos), anthophyllite, tremolite (can occur
with talc and white asbestos), actinolite

Serpentine group
Chrysotile (white asbestos)
Only chrysotile (white), crocidolite (blue), amosite (brown) and anthophyllite have been in
common industrial use. The colours are obvious when freshly mined, but ageing
and heat turns all asbestos a similar colour and only by scientific tests can asbestos
49

be identified and classified by type. By the end of the 1970s, 95% of all asbestos
mined was chrysotile and it is the only type still being exploited

Market Potential
In the light of economic liberalization, all round development is taking place in the country.
There is a very good demand of AC pressure pipes and fittings in the Government
department and domestic market. These pipes and fittings are extensively used for the
drainage of rainwater and irrigation purpose. With the upsurge in the building construction
and housing, the demand has further increase. There is good scope for setting up the
industry for the manufacture of these products.
Asbestos-cement pipe is light weight and strong, and is completely free of rust and
corrosion. Besides the two obvious materials, asbestos-cement pipe is also comprised of
silica. Being nonmetallic, it will not conduct electricity and resists electrolysis and galvanic
action.
As with cast-iron pipe, installation of asbestos-cement pipe is important because of its
extreme brittle character. The trench and the backfill material must be meticulously
uniform and free of debris, particularly rocks, to avoid pipe damage. Concrete thrust blocks
are required at all fittings, angles and stubs, so that internal water pressures can't pry
fittings from the pipe.

50

Substitutes for Asbestos-Cement Pressure Pipes

Substitutes for these asbestos products are not limited to products that simply replace
asbestos with another material (e.g., PVA and cellulose in fiber-cement roofing sheet).
There are also a number of wholly different products that can replace the asbestos products.
A number of substitutes for asbestos-cement products are included in the following table.

Asbestos Product

Asbestos-Cement
Corrugated Roofing

Substitute Products
Fiber-cement roofing using: synthetic fibers (polyvinyl alcohol,
polypropylene) and vegetable/cellulose fibers (softwood kraft pulp,
bamboo, sisal, coir, rattan shavings and tobacco stalks, etc.); with
optional silica fume, flyash, or rice husk ash
Microconcrete (Parry) tiles
Galvanized metal sheets
Clay tiles
Vegetable fibers in asphalt
Slate
Coated metal tiles (Harveytile)
Aluminum roof tiles (Dekra Tile)
Extruded uPVC roofing sheets
Recycled polypropylene and high-density polyethylene and crushed
stone (Worldroof)
Plastic coated aluminum
Plastic coated galvanized steel.

51

Fiber-cement using vegetable/cellulose fibers (see above),

wastepaper, optionally synthetic fibers
Gypsum ceiling boards (BHP Gypsum)
Polystyrene ceilings, cornices, and partitions
Asbestos-Cement Flat Faade applications in polystyrene structural walls (coated with
Sheet (ceilings, facades, plaster)
partitions)
Aluminum cladding (Alucabond)
Brick
Galvanized frame with plaster-board or calcium silicate board facing
Softwood frame with plasterboard or calcium silicate board facing

High Pressure:
Cast iron and ductile iron pipe
High-density polyethylene pipe
Polyvinyl chloride pipe
Steel-reinforced concrete pipe (large sizes)
Glass-reinforced polyester pipe
Low Pressure:
Cellulose-cement pipe
Asbestos-Cement Pipe Cellulose/PVA fiber-cement pipe
Clay pipe
Glass-reinforced polyester pipe
Steel-reinforced concrete pipe (large diameter drainage)
Cellulose-cement
Polyethylene
Fiberglass
Asbestos-Cement Water
Steel
Storage Tanks
Galvanized iron
PVA-cellulose fiber-cement
Asbestos-Cement
Rainwater Gutters;
Open Drains (Mining
Industry)

Galvanized iron
Aluminum
Hand-molded cellulose-cement
PVC

52

This industry Share about 673 small-scale asbestos mining and milling
facilities and 33 large - scale asbestos manufacturing plants, (17 asbestos-cement product
manufacturing plants and 16 other than asbestos-cement product plants) are situated in
India
Asbestos - cement makes up 85 per cent of all commercial applications and these products
are also being used as low-cost building materials. India consumes about one lakh tons of
chrysotile every year, mostly imported from Canada, Brazil, Kazakhstan, Russia and South
Africa.

AC

products

are

manufactured

mostly

in

wet

process.

Environmental friendly product

Although, air pollution levels of asbestos were reported to be elevated in the
areas surrounded by asbestos industries. The emission of asbestos may be negligible to
significant depending on its rate of emission and the fiber control measures and
technology. Other little possible emission sources during the processing of
products may be feeding of asbestos fibers
cutting and finishing of end

these

into mixing, blending the mixture,

products. Cement particles, asbestos fibers and

agglomerates of particles and fibers are therefore, released in the surrounding and
may be dispersed in air and water in large amounts.
53

Technical details of A.C. pipes

The asbestos cement pressure pipes are manufactured in the range from 80 mm to
1000 mm diameters.

The diameter represents the ID of the pipe.

They are manufactured in the classes of 5, 10, 15, 20 & 25. The class signifies the
hydraulic test pressure at which the pipe has been tested. This means the class 10
pipe certifies that it has been tested at a hydraulic pressure of 10kg/cm2. The
working pressure should normally be 50% of the test pressure.

The normal length of the pipes is 4 meters. Some of the also manufacture pipes in
the normal length of 5 meters. However the most prevalent nominal length of A.C.
pipes is 4 meters. Mainly looking to the transportation and the handling limitations
in case of 5 meter nominal length pipes, it is recommended that pipes of 4 meters
length should be used. The bureau of Indian standards ahs specified the various
parameters for checking the quality of A.C. pressure pipes in IS: 1592/1989. The
pipes to be ISI marked has to qualify all the parameters specified in the said
standard. The tests include hydraulic working pressure test, hydraulic burning test,
crushing test, bending test, pipe straightness test etc.

Advantages of A.C. pressure pipes:

54

Strength and durability

Non-corrosives

Non-tuberculation

Immunity from electrolysis

Thermal insulation

Impermeability

Low frictional loss

Light weight

Tight and flexible joints

Fewer specials

Fewer joints

Easy service connection

Cost effective and lower operating cost

No health hazards

Easy installation

55

COMPANY PROFILE

SRI VENKATESHWARA PIPES. LTD

Sri Venkateshwara Pipes.Ltd is a public limited

company, which is listed at the Hyderabad stock exchange. It is a part of KPR group of
companies comprising Bhagyanagar Pipe industry Pvt. Ltd., Balagi Amines Llimited.,
Flowell Pipes industries., Balagi Cement products Pvt.Ltd., Bharathi Cement Products and
Bhagyanagar

Wood

Plast.

Ltd.

It

is

situated

at

Gundlapochmapally(village),

Medchal(mandal), Range reddy(district), Andhra Pradesh. The turnover of the company is

around 08-00 crores. Sri Venkateshwara Pipes Ltd was promoted by Sri N.Kishan Reddy
and A. Pratap Reddy in the year 1994. HUDCO (Housing and Urban Development
Corporation) had originally sanctioned the team loan in the year 1998 itself. It has
disbursed a sum of Rs.218.32 lakhs towards tern loans. They manufacture Asbestos cement
pressure pipes and couplings. The company at present is in the project of manufacturing the
Asbestos cement pressure pipes at an installed capacity of 40000M.T.s

56

Main objectives and the highlights of the company

Objectives:
To establish and carry on in India the business as manufacturing, producer,
wholesaler, retailer, traders etc., to deal in all shapes, sizes, dimensions, varieties,
specifications, uses of all or any kind of pipes including asbestos and cement pipes.
To carry on the business of work contracts all over India.
To manufacture, buy, sell, import, export, or otherwise deal in asbestos and cement
pressure pipes that may be required by the State Governments.
To purchase on hire goods, materials, machinery on credit or otherwise for the
purpose of the company.
To engage in research into all problems relating to personnel, industrial, and
business management, marketing & selling and to collect, prepare and to distribute
information relating to the type of the business.

Highlights:
57

Project appraised and term loan assistance from HUDCo (Housing and
Urban Development Corporation).

Environment friendly product.

Promotes with two decades of industrial experience.

Product items used by Government departments for water supply schemes.

MANAGEMENT

The management of the company vests with the board of

directors consisting of persons having experience in technical, financial, marketing and
commercial fields. Sri Bhopal Reddy, Managing Director of the company will be in charge
of day-to-day operations and overall corporate management. The company has recruited
personnel with requisite experience and qualifications.

Mr. N.K.Sudreshan Reddy, General Manager (works) looks after the affairs of the factory.

Mr. Bhoopal Reddy a postgraduate in Management one of the directors of the company has
been looking after the affairs of SVP.LTD. He is also the Managing Director of Sri KPR
Infra & Projects Ltd subsidiary of SVP Ltd.
Right now all the HR activities are managed and controlled by the director Mr.
N.K.Sudershan Reddy with the help of his associates and assistants.

58

CHAPTER 4
ANALYSIS & INTERPRETATION

59

(1) What are the sources of recruitment process?

Sources

No. of respondents

Campus

Reference

Paper ads

13

Consultancies

60

INTERPRETATION:
The most of the percentage is given to the paper ad, which is
up to 65%. And the next is given to the references, which is up to 35%. The rest are not at
all considered in the organization. This is how the company is totally concentrating on
paper ads and references.

(2) Which of the following are the basis for selection?

Traits

No. of respondents

Skills

Attitude &
knowledge

Learning ability

Smart & hard

working

Experience

13

Both skills &

knowledge

61

INTERPRETATION:
The company is giving importance to the experienced candidates,
responding up to 65%. Next importance is given to the skills responding up to 25%. And
10% is given to both skills and experience.

(3) Who among the following are involved in the performance appraisal?

No. of respondents
Immediate
superior

Self analysis

Peers

Customers

Overall
department head
Both immediate
& overall
department head

13
2

62

INTERPRETATION:
From the analysis I came to know that about 65% of the respondents say that
Overall department is involved in the performance appraisal. And 25% to the immediate superior.
10% is given to the both immediate & overall department head. Others are not given importance.

(4) Which of the following are covered in your organization?

No. of respondents
Factories act

Maternity act

Pension act

Gratuity act

PF

Both PF &
factories act

63

INTERPRETATION:
Most of the employees are given provident fund by the organization, responding up
to 45%. Factories act is given 40%. And 15% is given to both provident fund & factories act.
Pension, gratitude and maternity act are not been considered much.

(5) Company concern for the employees?

No. of respondents
Yes

12

No

Sometimes

64

INTERPRETATION:
60% of the respondents say that they really have concern towards the
Employees. Some of them who dont feel that employees are shown concern gave have come
No.given
of respondents
to 40%. It seems that employees are
due consideration in the company.
Yes

10

No

10

(6) Efforts to position the employees for the best utilization of their talents?

65

INTERPRETATION:
Half of the respondents say that they really make use of the talents to have
optimum results. And also the other half of them say that talents of the employees are not been
used properly.

66

CHAPTER 5
FINDINGS
CONCLUSIONS
SUGGESTIONS

FINDINGS

RECRUITMENT POLICY
67

Generally SVP.Ltd. recruits its workers through a local

newspaper advertisement followed by an interview. This candidate comes responding to the
newspaper advertisement are first asked to give their details in the bio-data. Then the
candidate are short-listed by the assistant on the basis of their experience, qualifications etc.
The following are the steps for the recruitment in the company:
STEP 1: Managing Director gets the information about the vacancies from the works
manager.
STEP 2: The Managing Director gives an advertisement in the local newspaper and it is a
walk-in- interview.
STEP 3: Applicant has to give his/her bio-data in person on the date of the interview.
STEP 4: The assistant to the M.D. scrutinizes the applications.
STEP 5: Short listing the candidates for the interview.
STEP 6: Interviewing.
STEP 7: Finalizing the candidate on the basis of experience, merit or any other quality of
the applicant.

PERFORMANCE APPRAISAL
Performance appraisal is done just for giving some incentive in the form of
increments, as there are no promotions. The supervisor and the accountant will do the
performance appraisal.
68

The supervisor appraises the efficiency of the worker at the workplace, i.e.
he checks how far the employee is attentive while doing the work and how is he
performing on the job.
The accountant does the second part of the performance appraisal. The
accountant records the attendance and the time when the worker comes to the workplace.
So performance appraisal is done on the basis of punctuality and good attendance record.

Both the supervisor and the accountant will give their report to the works
manager about the performance of each worker. The works manager will decide whether to
give any increment or not.

TRAINING AND DEVELOPMENT

The policy of the company is to hire people who have
experience. So the company feels that there is no need of training and development. The
company also feels that a person can learn the work at the workplace itself as he does the
work.

BENEFITS AND EMPLOYEE SERVICE

The company provides housing quarters to some of its
employees and all other benefits like E.S.I., P.F. etc. a big lunch room is provided for the
employees. Apart from these facilities the company does not extend any other benefits to its
employees
69

GRIEVANCES
According to the observations and interactions with the
respondents it is found that there is concern for the employees from the management side.
But they say that most of the grievances were not resolved properly by them. No particular
person is concerned for the grievance handling.

JOB SATISFACTION
Most of the employees are not satisfied with their job and the
working conditions of the job. The reason being the management is least bothered about the
welfare of the workers and most of the workers are willing to leave the organization if they
get a better job. To some extent the company the labor turnover is not so high. But to
decrease the labor turnover, it is important to attain the satisfaction of the employees.
TRADE UNION
There is a trade union even though the company is small.
Most of the respondents, trade union is not doing its duty in a well defined manner. Almost
every person interviewed was of the opinion that trade unions are a must for small
companies also.

CONCLUSIONS

Small organizations generally do not concentrate on HR

practices. But in the wake of liberalization and tough competition, organization should
focus on survival. Therefore concentrating on Human Resources is essential, in this study it
70

is found that certain HR practices are followed but unfortunately these practices are
unorganized and unstructured. In fact there is no specific HR department, the reason being
the company did not feel the need for it so far.
The problems ailing in the current practices are like:
The company is following the HR practices in an unstructured and unorganized
way.
The accountant is making the performance appraisal, whereas the duty of the
accountant is to look after the accounts. The accountant also lacks the knowledge
of performance appraisal.
There has been unnoticeable direct baring on the productivity because of this
present system of practices.
The Managing Director is doing the recruitment process, by not delegating the
responsibility of recruitment to the department concerned. He is not utilizing his
time optimally.

SUGGESTIONS

If the company wants to succeed in the long run the following suggestions
are made keeping the drawbacks of the company.

71

 To set up an integrated HR department. Though the company follows almost all the
HR practices which are not structured or organized.
Create the need for training. As the workers are not in a position to know the
advancement of any machine being used.
To encourage the productive and efficient workers with incentives. Encourage the
efficient employees also with some non-monetary benefits.
To adopt a proper HR planning system, should make a clear job description and
restructure its recruitment policy.
To allow the employees to express their grievances clearly and handle them
properly.
Introducing welfare measures for the employees, like transportation facilities,
credit facilities etc. Arranging for the annual get together for the recreation of the
employees.
Follow the policy of recruiting people who have experience in the relevance field.

BIBLOGRAPHY

BOOKS:

72

ESSENTIALS OF HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL

RELATIONS by P.Subba rao.

PERSONAL MANAGEMENT by C.B.Mamoria and S.V.Gankar.

INTERNET:

www.Google.com.

www.ask.com.

www.wikipedia.com.

APPENDIX

QUESTIONNAIRE
73

(CLOSED ENDED)
1. What are the sources of recruitment process?
-campus
-Reference
-Paper ads
-Consultancies
2. Which of the following traits is the basis for selection?
(A). Skills (B). Attitude & Knowledge (C). Learning ability (D). Smart work &
Hard work (E).Experience (F).both (A) & (F)
3. Who among the following are involved in the performance appraisal system?
(A). Immediate superior (B). self analysis is also included (C). peers are also
included (D). customers (E). Overall department head (F).Both (A) & (E)
4. Which of the following are covered in your organization?
(A). Factories Act
(B). Maternity Act
(C). Pension Act
(D). Gratuity Act
(E). PF
(F). Both PF & Factories act
5. Company concern for employees?
a. yes
b. no
c. sometimes
6. Efforts to position the employees for the best utilization of their talents?(Y/N)

(OPEN ENDED)
1. Any other recruitment sources would be suitable for the organizational needs? If yes
what are they? And why?
______________________________________________
74

2. a) What is the selection process in your organization?

___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
____________________________________________________________
b) What format of selection process would you suggest and why?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________
3. How many people are involved in placing a candidate in the required job?
4. Do you have any induction system in the organization? (yes/No)
If yes, how it is given?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________
5. Do you have any man power planning system (i.e., identifying the required no of
employees annually at one time? (y/n)

If yes, how does this activity is conducted?

6. What is the format of performance appraisal system in the organization?

7. Are you satisfied with the performance appraisal system (yes/no)

. If No, what format would you suggest?

_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
__________________________________________________
8. How are the training needs identified in the organization?
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9. Who takes up conducting up of training sessions?

10. Are you satisfied with the training programs (yes/No)
If No, what pattern would you suggest?
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
______________________________________________________________
11. Do you have any career planning for the employees (yes/No)
If no what would you suggest?
12. What is the basis for transfers?
13. What is the basis for promotion?
14. Who takes care of the wage and salary administration?
15. Which of the following fringe benefits are given to employees?
Housing facilities, education facilities, canteen facilities, conveyance facilities,
Credit facilities, recreation facilities, medical facilities.
.
.
16. Do you have any incentive schemes in your organization? IF yes, what are those?
17. Do you have any quality circles in your organizations?
18. Is employee turnover high in your organization if yes, what steps has to be taken in
your point of view?

Organizations Hierarchy

76
CHIEF EXECUTIVE
OFFICER

MANAGING DIRECTOR

Marketing Manager

General Manager

Production Manager

Quality Control
Manager

77

Accounts Manager

78