You are on page 1of 113










2010 FROM: 1st JUNE 2009 to 31st JULY 2009


Practical training is considered to be an essential part of all the professional institute and

those who are aspiring for MASTER OF BUSINESS AND ADMINISTRATION. This

project is done in the field of HR.

As aspects of management education, which is receiving attention the evaluation of the

practical training is to be actual environment in touch of Business Management. It rigidly

excepted that the theory widens one’s thinking VIZ. Concepts of HR philosophies.

This project work done under the kind permission of SMV Beverages, Jamshedpur of Pepsi

Product. The SMV Beverages (Jamshedpur) is the franchises of Pepsi Food Ltd., and has its

bottling plant situated at Adityapur Industrial Area on Tata – Kandra Main road.

We have done our training in Jamshedpur under the guidance of the Executives of SMV

Beverages (Jamshedpur). This report gives a true picture of the practical activities done by us

within the jurisdiction. The study was limited to Jamshedpur and its adjoining areas. Hence,

the results of study is particularly to Jamshedpur and general to all the towns in Jharkhand.


I take this opportunity to express my deep sense of gratitude to SMV Beverage (Jamshedpur)

a franchisee of Pepsi Co. for taking us as a summer trainee and extending us full support and

co-operation towards the completion of this project.

I express my sense of gratitude to Mr. P. K. VIDYADHAR (Personal, Officer) Mr.S.K.Bahl

(HR Manager) and P.S. Kumar (Director) of SMV Beverages (Jamshedpur). Who has given

us an opportunity to do the summer project in their organization.

I express my sincere thanks to my parents for his kind co-operation during my summer



1. Soft drinks Industries in India.
2. Introduction of Pepsi Co.

About the organization:

1. Structure of the organization.
2. Organization chart.
3. Production process.
4. Bottling plant flow chart.
5. Process Layout.
6. Nomenclature of SMV Beverages.
7. Pepsi – “The Indian Rendezvous.”
8. Advertisements.

HR Function:
1. HR
2. Recruitment, Selection of Induction.
3. Performance Appraisal.
4. Wage Administration.
5. Manpower.
6. Transfers & promotions.
7. Communication.
8. Perks & privileges.
9. Grievance
10.Traning and Development.
Industrial Relations and Legal Aspect.
1. Misconducts & Penalties.
2. Trade Unions.
3. Labour Laws.
4. Team Development.


India had “strange bedfellows” kind of relationship with MNC’s which gave
significant opportunities to soft drink industries of India when coca-cola decided

to wind up its operations in 1977 rather than bowing to the Indian Govt.
insistence on:-
• Dilution of equity, as the govt. felt that the lots of foreign currency were
being drained.
• Manufacturing of the secret concentrate (syrup) in India.
• Disclosure of the chemical composition of the essence.
After the winding of Coca – Cola a large was left in the vast soft drink market,
and a vista was opened for any company with the requisite, technical, marketing
and organizational skills.
Three or four groups of Indian bottling companies had the requisite production
capacity started their own branch of COLA, LEMON & ORANGE flavour, but
failed to achieved their respective goals on the national prospective.

Owner Company Products

Mc. Dowell Trill, Rush, Sprint, Kissan.
Parle Thumps Up, Gold Spot, Limca, Mazza.
Pure Drinks Campa-cola, Campa-orange, Campa-lemon, Tripp.
Modern Bakeries 777, Tringler
Double Cola Sky Lemon, Oren joy lemon, HcMan, Soda.
Lipton Tree Top.
Punjab Agro Ltd. Vol-Fruit.

Their well equipped bottling plants and distribution network were of no use until
1977 when they developed a new formula to survive and they gradually came up
with lemon, orange and Cola flavor. No doubt in this era the race winner was

Parle with Thumps Up, Gold Spot and Limca under its umbrella. Parle products
viz. Thumps Up, Gold Spot and Limca because the market leader in their
respective segments. Thumps Up was frontrunner of Parle brands blazing its way
bearing the slogan “happy times are here again” indicating the coke replacement.
Thumps Up to very great extent retrived the coke addicts from the so-called
“cola-shock” or “cola-depression”.
In spite of all these, the soft drink market are still has large gap, as claim by the
soft drinks manufacturers. To fill the gap, there many soft drinks concentrate and
squashes flooding the market.
The Indian soft drink market basically offered three flavors, i.e. orange Lemon
and Cola now after long gap, Govt. of India invited Pepsi Cola Company in 1990
and it pumped Rs. 1000/- Crores into Indian’s operation. Pepsi Cola Company
founded by Cable Bradham in 1890 at North Carefina in USA. Now it is ranked
86th (1996) in the world with an asset of around $25000 million, having its
headquarters at New York. Its in India it has more than 24 bottling plants of them
10 are COBA and are FOBO of with one is in Jharkhand at Jamshedpur. Along
with Pepsi Coca-Cola also entered India in 1993 and has joined with Parle to do
the business on Indian soil to regain its lost prestige.

S.C.B.P.L. Adityapur, Jamshedpur was a medium sector enterprise, located amidst beautiful

surroundings, on the Tata-Kandra Road in the Adityapur Industrial Area and producing Pepsi

range of bottled soft drinks s viz., Pepsi, 7 Up, Miranda (Lemon, Orange and Apple) and

Slice it had now become a household word in the South Bihar today symbolizing

achievement advancement over the years. Today, it symbolizes self-reliance in quality and

technology, productivity and industrial relation since, its inception over 25 years ago. Steel

City Beverages Private Ltd. was established in 1967 and production commenced in March

1969. At the very out set the company installed state of the art machines and technology, for

the production and bottling of Soft Drinks. The bottling plant with a capacity to produce 220

bottles per minute is totally automated and also had a modern state of art inter mix machine

for bringing forth the right blend of flavours. The company continuous to adopt and innovate

technology in keeping with its policy of constant quality improvements. With the advent

Pepsi cola International in India, the company entered into an agreement with Pepsi Foods

Ltd. for the production and sales of Pepsi range of soft drinks for Jharkhand.

The company which had a man power 110, ranked as the best bottling company in the

country in terms of quality, efficiency, sales productivity and HRD. Under the guidance of

its chairperson, Smt. Kusum Kamani and the able stewardship of its Managing Director, Sri

Nakul Kamani, the company had consistently bagged on numerous occasion, awards for

quality assurance and productivity. In 1993, it bagged top honors for being the most quality

conscious plant amongst all Pepsi bottling in India. The Company’s highly sophisticated

plant and quality control laboratory along with the dedicated and enterprises of its employees

of its more than evenly matched by the management‘s sense of understanding and

compassion that had ensured the companies progress with every passing day. Steel City

Beverages Ltd. was taken over by Mr. S.K.Jaipuria in March 1999 from Mr. Nakul Kamani

along with Rushabh Marketing (P) Ltd., a Marketing Unit. Mr. S. K. Jaipuria is a very

enthusiastic and enterprising businessman. He has a number of bottling plants all over India

in places like Orissa, Bhopal, Nagpur, Hyderabad & Dharward etc. He always wanted to

increases the production and sales of this products. So in this year 2002 another bottling

plants in the name of S.MV.Beverages (Jsr), a Unit of SMV Agencies (P) LTD was

established by Mr. S.K.Jaipuria. It has the capacity to produce 600 PM in Jamshedpur,

which is catering to the need of the whole of Jharkhand. It is also a Franchisee of Pepsi.

Though Mr. Jaipuria holds the top position but the overall policies regarding managerial

decision and all executives’ functions are perfotrmed and looked after by Mr. P.S.Kumar –

Director of SMV Beverages. (Jamshedpur). The Directors looks after all the functions of

production, Sales, Accounts Personnel, Purchase etc. all the departmental heads are assisting

him in smooth running of the day to day affairs of the company. SMV Beverage

(Jamshedpur) is proud of winning PEPSI Q.A. (Gold) International Quality Awards for the

year 2001.

SMV Beverages (Jamshedpur) is also proud of setting up PET Plant in March 2003, It has
the capacity of bottling 40 PET bottles per minute. It is bottling 500 ml, 1.5 liter and 2 liter
PET bottles of different flavors.

• Pepsi (cola)
• Miranda Lemon
• Miranda Orange

• 7 Up
• Mountain Dew

At present SMV Beverages (Jamshedpur) (a Unit of SMV Agencies (P) Ltd.) has following
Sister concerns.

1 Steel City Beverages Pvt. Ltd.

2 Hyderabad Marketing Company.

Earlier it had M/s. Kamani Foods which was only SLICE and in 2004 M/s. Kamani Foods
was merged with SCBPL now SCBPL is producing SLICE along with other brands of
PEPSI. It is mainly bottling 300 ml & 250 ml (slice).

SCBPL has also started bottling pet bottles of slice. It bottling slice of 500ml and 1.2ml.


For every concern a structure is necessary on which the complete organization should be

founded. To have a structure is not choice of the organizer. The choice is only of the form

and pattern of the organization planned organizational structure may be proved logical clear

cut and streamlined in order to meet the present requirements. Otherwise it will merely be a

makeshift arrangement and management is rendered difficult and ineffective because

organization structure facilities efficient management and the operation of enterprise * it

encourages growth. It helps organization to reach it’s predetermined goals.

In order to make the organization structure more effective one should keep in

organization structure that can meet the demand of various factors namely environment

technology, size and people. SMV beverages (Jsr) has dully considered these factors to build

an efficient organization structure. As it is a medium scale enterprise and fully automatic, the

manpower requirement is less. Hence, like any contemporary company, it has adopted a flat


Organisation Chart, Jamshedpur Franchise
Director (Mr. P.S. Kumar)

G.M Plants Plant Superintendent Production Manager Maintenance Engineer

(Mr. S.N.S Yadav)
Staff Supervisor Store Laboratory Electrical Engineer

Personnel Department Personnel Officer Staff Security Department

(Mr. S.K Bahl)

Purchase Department Purchase Manager Purchase Asst. Staff

(Mr. S.K Ghosh)

PMT/Visicooler Dept. Manager (Equipment)

(Mr. M.V. Macwana)

Finance Department Finance Manager Accounts Officer Asst. Account Officer

(Mr. Y .Thakkar)
Cashier Jr. Account Executive Accountant

Logistic Manager
(Mr.M.C. Chakraborty)

Shipping Department P.A.C Shipper Loader Forklift Operator

(Mr.A Sahay)

Head Sales T.D.M Jamshedpur Dy.T.D.M Dhanbad

(Mr.S. Bhattacharya) (Mr. S.Chakraborty) (Mr. K. K Thakur)
C.E Dy.T.D.M Ranchi
(Mr. A.Tiwari) (Mr. Ansuman Dutt)

Following are the major features of the
organizational structure of SMV Beverages.

1. Clear lines of authority.

2. Adequate delegation of authority.
3. Minimum Managerial level.
4. Unity of Directors.
5. Applications of ultimate responsibility.
6. Span of control.
7. Simplicity.
8. Flexibility.
9. Due consideration for top groups.
SMV Beverage (Jsr) has a management board headed by its unit Manager & Director

Mr. P. S. Kumar. He is responsible for overall policies regarding managerial decisions and

all the executive functions. He looks after all the functional department like productions,

sales, accounts, personal and purchase. Their respective managers who send reports to the

unit managers and are responsible to him in every sense of working head every department.

The plant manager is the head of the production department. He looks after production

i.e. bottling process, inspection, storage of new materials and maintenance of the as a whole.

He also heads the Quality Control Department through Quality Control Manager. The

controller of accounts heads the accounts department, under him there is a chief accountant.

The purchase officer is in charge all purchase –shipping department, Manager (equipment) is

responsible for the distribution and maintenance of vise-coolers and PMX. Personal

department is headed by personal manager and looks after function of administration,

industrial legal jobs, security welfare etc.

Hyderabad Marketing Company

In this unit, the head of sales and marketing is in charge of all the marketing activities i.e.

sales promotion, publicity, advertisement, market survey, shipping. Though his main

manager is assisted by sales executive and sales supervisor.


The production process being carried on the SMV Beverages (Jamshedpur) in for batch type.

The entire process is almost automatic and it requires huge amount of water and electricity.

The production process is divided into following steps:

Water Treatment.

Bottle Washing.

Syrup Preparation.




SMV Beverages (Jamshedpur) gets water from Sitarampur Dam. This water after being

collected in huge tanks undergoes two different treatments resulting in soft water and treated



The municipal water is passed through sand filter, carbon purified and salt charged softener

(to remove hardness). The water obtained after this treatment is called soft water. This soft

water being kept with 2-4 PPM cl2 in storage tank is used for bottle washing and the water

being stored with c12 goes to the boiler.


The municipal water is at first treated with Ferrous Sulphate (FeSO4), lime and Chlorine.

This process involved is called Coagulation and it takes place in the reaction tank. From

reaction tank the water moves on to the intermediate tank to be stored in storage tank. From

there it passes through the sand filter, carbon purifier, micro purifier and Ultra – Violet

Light. Water obtained after this much treatment is called treated water and is used

preparation of drink.


Bottle coming back from market need to be washed before filling. Washing of bottles is a

completely automatic process. This takes place in a machine having three chambers. Bottles

are put on the conveyor and as they enter the machine they undergo three successive

treatments. At first, they are treated with 4% caustic soda at 100- 150 F. in the next

chamber, they are treated with 2% caustic soda at 120 F and in the third chamber they are

treated with soft water. The cleaned bottled are sent to inspection, where the upper and lower

portions of the are watching successively against strong light.


The room is well equipped with several tanks and filter press. The Syrup is prepared with

calculated amount of sugar and water being heated up to 85 C. This syrup is passed through

filter press. The filtered syrup is passed through a Para flow cooler whereby recycling and

glycol method the syrup is cooled down to 20-25 C. The cooled syrup is stored in syrup tank.


The syrup mixed with carbonated water under pressure in a Traumatic machine. Inspected

bottles gradually come under the “Filler Machine” where the carbonated syrup is poured into

the bottles and the crowner machine helps in closing the bottles completely airtight. Ready

bottle are once again inspected to check the quantity and from there they are collected.


After the whole process of bottling is completed, filled bottles in cases (Crates) are sent to

the shipping department and it sends them to different destinations for






Salts Parts






Bottle Coder in


Bottle Coder in Pet












Following are the nomenclature of employees of SMV Beverages (Jsr.)

 Plant Manager
 Production Manager
 Foreman
 Production Supervisor
 Time Keeper
 Assistant Engineer
 Plant Supervisor
 Chemist
 Technical Supervisor
 Store – In Charge
 Helper
 Bottle – Washer Operator
 Ammonia Operator
 Filler Operator
 Syrup Operator
 Boiler Operator
 Intermix Operator
 Water Treatment Operator
 Electricians
 Auto Mechanics
 Welder
 Plumber
 Shipper & Loaders
 Sweeper
 Manager (QC)
 Technicians
 Blow Molders (OSM Engineers)

Pepsi – “The Indian Rendezvous”

In 1989 Pepsi set its foot in India. It came with a bang and gave a global message – “We are

here to stay”.Pepsi in short span of its operations in India has found a place in hearts and

minds of the Indian consumers. The success has primarily been due to the innovative and

passionate Indian team, which has been build over the years. Pepsi is trendsetter managed

and by Indians, where important decisions are taken locally.

Pepsi started its operation in India 1989 viz, Manufacturing, research & development,

marketing, distribution and franchising – covering fruit / vegetable processing, export, snack

foods & beverages. In 1993 Pepsi Co. set up a holding company to further accelerate growth

in the future through new initiatives and joint ventures.Pepsi Co. is fully committed to India

and the national objective of development of technology and accelerating exports and

employment. It has brought in over $ 500 million in foreign exchange as well as technology,

which is used, for its global network to develop value-added local and export businesses. It

has not repatriated any money by way of royalty, know-how or dividends.

Pepsi Co has a turn over of $25 billion, half of which comes from beverages and other half

from snack foods division. The beverages arm of the Pepsi Co is Pepsi Cola Company and

the snack food company is called Frito Lay Inc.

Pepsi has setup a concentrate plant in 1990 at Channo, district Sangrur Punjab. With a

investment of $million the state of art plant houses a world class laboratory where soft drink

from all over the world is tested. The concentrated plant supplies Pepsi, 7Up, Miranda,

Apple & Lemon Flavors to all Pepsi bottling plants in South Asia.

Pepsi has 40 bottling plants in India, out of which 16 are owned and 24 are owned by Indian

franchisee. Pepsi Co has invested heavily on up-gradation of these bottling plants and has

put-up 5 green field projects in backward areas such as Jaipur ,Bazpur, Bharuch, Sonarpur

and Nelamangala. New projects are coming up in Maharastra and Tamil Nadu.

In addition to company’s own bottling operations (COBO). Pepsi has 24 franchises owned

bottling unit in India. These franchises manufacturers are also planning to install substantial

additional capacities. In last two years Pepsi Co’s franchisees have put up new bottling

plants at Jaipur, Bhopal, Hajipur (Bihar), Guntur (AP) and Guwahati (Assam) with further

investments. Pepsi Co’s franchisees are amongst the best in Pepsi world and in 1998 two

Indian franchisees where chosen for being the bottling of the year amongst all international



Pepsi Co plants to launch in big way in India, thereby helping farmers in fruit procurement.

Pepsi Co Agriculture Scientists have undertaken research on Mango, Guava & Oranges and

these fruits will be priority area for the juice launch in India. Presently Pepsi has two juice

brands Mangola and Slice which are presently mango juice brands. Pepsi Co also has juice

bottling line in most of the plants.

Employment Generation

Pepsi provides direct and indirect employment to 45000 people. In addition, it also generate

substantial employment in the unit supplying raw materials / packing materials, fountain cup,

distribution vehicles, glass bottles, plastic crates, display racks etc. and small artisans,

painters and small traders in market place activities. All of Pepsi’s business in India are

either in industries with backward linkage with farmers or in service industry which are

highly employment intensive.

Beverage business is a service industry, being highly distribution oriented. The Pepsi system

operates over 3000 trucks (direct operations). 8000 three wheeler (distributors) and at least

1000 push carts, servicing over half a million outlets in India. By the year 2005 the number

of outlets to be served is expected to be doubled.

Personnel Management / Human

Resource Management
HR/Personnel Management – means quite simply the task of handling the human problem of

any organization. A Factory, a business or an association a consists of people work up

together. Even the automated factory of future will still require the human brain apart from

electronic computer and the army of men who make and mountain the wonderful machine.

To get the work done in any organization on the people engaged in it require three thumps if

they are to work happily and efficient together.

1. Economic Satisfaction of a reasonable livelihood.

2. Social satisfaction of working together as member of group.
3. And the individual satisfactory of doing the job well.
Management has been described as getting results through people. Through people of
different department / section of the organization. Personnel Management / HR is one aspect
of management. No management can be efficient without a sound personnel policy, without
the right approach to the human beings engaged in the organization whether they are
unskilled, skilled, highly skilled (Highly Qualified Engineers).

The final responsibility for personnel policy rest both the top management and its executive
run through the whole line of management needs its specialist on the production side, so also
its needs specialist on Human and Industrial Relation. The team Personnel Management
Originated in America but other terms in fashion from time to time and still in use can be
taken as synonymous, such as Labour Welfare or Labour Management, Personnel or staff
Management, Industrial Relations or Human Relation in industry. The actual title is of little
significance if the job being done in the same.

Personnel Management / Human Resource Management is the part of the management

function which is primarily concerned with the human relationship within an organization.
Its objective is the maintenance of those relationship on a basis which by consideration of
well being of the individual, enables all those engaged in the undertaking to make their

maximum personal contribution to the effective working of the undertaking. In fact three
objective are expressed in the above definition.

1. To maintain good relationship within an organization.

2. To enable each person to make his maximum personal contribution to the organization.
3. To achieve these things through respect for human personality and well being of the

Our employees are our best asset”. Many companies have said fore a long time. Now,
through some is actually beginning to believe it. This emphasis can partly be attributed also
to the new valves of humanism and humanization, emergency in the world. Moreover, with
the increased emphasis on creativity and autonomy, which people are increasingly acquiring
and enjoying in the society, the expectations of people are fast, changing. Human resource is
the most valuable resource for any organization. They have their own needs, motivation
expectations, and their contribution to the organization is much more than that of any other
resources being used.

Hence, there is no doubt that they are not merely necessary evils to be reckoned with, but
they can contribute a great deal to the achievement of organizational goals. Hence their
contribution must be recognized and appreciated.

The SMV Beverage (Jamshedpur) is moderately small organization. The Personnel

Department has HR functions are to control and monitor HR welfare, discipline of the
organization and other maintenance type activities.

The department has a high status and great credibility in the organization.

Thus, I also had the opportunity to serve the organization by doing the following practical
work related to HR job which are as given below.

o Maintenance of audit worker’s register.

o Posting of PF statement in the contribution cards.

o Maintenance of register of employees prescribed under ESI
(Regulation 32).
o Calculation and maintenance of bonus register.
o Filling of the pay-slip.


According to Byers & Rue:

“The process of seeking and attracting a pool of people from which qualified candidates for

job vacancies can be chosen.’’

According to Edwin B Flippo:

“Requirement is the process of searching for prospective employees and stimulating them to

apply for jobs the organizations.” Effectively, requirement is the process of getting the right

kind of people to apply for the vacancies in an organizations.

1. Tapping the existing sources of applicants and developing new sources.

2. Identification or creating new sources of applicants.
3. Stimulating and attracting the candidates to apply for jobs in the organization.
4. Deciding the requirement procedure.

Recruitment is the process of inviting application for the vacant job position. The quest for

the perfect being has made the management to adopt a policy to recruit the employees

through the following methods:

o Advertisements
o Consultants
o Employment exchange (for non-executives workers engaged)
o Relatives of the employees
o After receiving the job application, the short listing is done. This is done on the
basis of the job requirement. Those candidate, who are short-listed, are sending the
call letters for the interview.

Recruitment Process


HRP Job Analysis

Job Vacancies at a future date Recruitment

• Type • Type Applicants Pool
• Number of HRs • Number


Search for the prospective Evaluation

Candidates & Potential Hires
Source Control
• Traditional
• Modern

To Selection

Stimulate them to apply

• Traditional
• Modern

Sources of Recruitment

Traditional sources Modern Sources

Internal External Internal External

Present Campus Employee Walk-in

Permanent Recruitment Referrals
Employees Consult in

Present Private Head hunting

Temporary/ Employment
Casual Agencies/ Body Shopping
Employees Consultants

Retrenched/ Public Mergers &

Retired Employment Acquisitions
Employees Exchanges

Dependents Professional Tele

Of Deceased Associations Recruitment

Disables, Data Banks Outsourcing

Retired &
Permanent Casuals
Employees Applicant ants


Trade Unions

The process of employment selection is to choose the right candidate for a job. The process
of identifying and establishing the credentials of candidate for a job to ensure success is
referred to as selection. This includes predicating the in-job performance of candidates.

This deals with:-

1. Scanning the application forms/CV’s;

2. Evaluating the candidates and fixing their salary and benefits;
3. Evaluating medical fitness policy and examination procedures;
4. Intimating the candidates, even the ones who are not selected, about the results of the
selection process;
5. Employing the selected candidates.
A HR Manager knows that getting the right candidate is only half the battle won. Because it
has been rightly said that most of the problems a manager faces in his organization are
human rather than mechanical. The root cause of these human problems can be wrong
selection. The quality of people can be controlled at the selection stage to ensure the smooth
functioning of the organization.
Hence, SMV Beverages (Jamshedpur) has a vigorous selection process, which include
component like interview and six month’s probation period to assess the performance. The
candidate is interviewed by generally three people:
1. C.E.O.
2. Personnel Manager
3. Finance Manager or Sale & Marketing Manager or Technical Manager.
The Finance Manager or Sales & Marketing Manager or Technical Manager is engaged in an
interview depending upon the candidate interviewed for the specific job position.
This practice ensures the selection of right people at the right place for doing the work for
which they are best suited.
The key areas of consideration while qualification, experience (if any) and personality.
Selected candidate then undergo an induction procedure.

Scientific Selection Process

Development Bases for Selection

Application/ Resume/CV/ Bio-data

Job Analysis

Written Examination

Preliminary Interview
Human Resources Plan

Business Games


Final Interview

Medical Examination

Assess the Fit between the

Job and the candidate
Reference Checks

Line Managers Decision

Job Offer


Introducing a new employee to the organization, its business, the organization culture, its
values and beliefs, and practices and procedures is termed as induction. It also helps the
employee get acquainted with his new job and his tasks and responsibilities.

The candidate selected is kept on a six month probation period candidate is also introduced
with the works, values and culture of the organization. During this period his performance is
judged. If he is found suitable for the job he had been selected, he is allowed to continue. But
if the candidate is found to be unsatisfactory for the job, then he is given another opportunity
to improve by extending the probation period for another six months.

If the performance of the candidate improves during this period, then he is allowed to
continue. Otherwise, he is terminated.

This practice is followed to ensure the induction of best fit for the job & hence the
employee’s degree of learns ability is also checked.

The performance of the employees are need annually through confidential report.
For the executives:-

The employees are asked to fill the self-appraisal from so as to judge him on the given

1. Name
2. Designation
3. Duties & responsibilities of the post
4. Significant achievement and contributions
5. Failures, if any
6. What is my strength?
7. What is my weakness?
8. What is my special professional interest?
9. Suggestions, if any.
The filled forms of self-appraisal are submitted to the First Reporting Officer and then the
Reporting Officer, write performance report about the executives.

Following are the critical judged by Reporting Officer.

1. General application of knowledge and experience, ability, operating control,

organizational work etc.
2. Performance against targets.
3. Constraints unforeseen difficulties, if any.
4. Personality (Habits, Attitude, Traits, emotional qualities).
5. Judgment.
6. Constructive imagination.

Accordingly following remarks are awarded to the employees:

1. Outstanding excellent
2. Excellent very good
3. Good
4. Adequate
5. Poor
6. Unsatisfactory
The reporting Officer after writing the reports send it to the reviewing, officer who gives the
final judgments.

The performance appraisal is done with a view to:

1. Give adequate feedback to each individual in his/her performance

2. To give base for salary increases transfers demotions or termination.
3. Provide ground for coaching and counseling individual by the superior.

The pivotal role-played by compensation in motivating employees towards a higher & better
performance is no longer in doubt.

SMV Beverage (Jamshedpur) is not the best paymaster in the industry, but it aims to be in
the upper quartile. Like most contemporary employees, besides the basic salary, it offers
other perks & privileges.

Employee in SMV Beverages (Jamshedpur), are governed by their respective pay scales.
There are grade of pay scales for different categories of workers. Normally, these are based
and classified as follows:

o Unskilled
o Semi-Skilled
o Skilled
o Highly-Skilled
o Supervisory
Pay scales of these employees are fixed by agreement between management and the
recognized union. Apart from the Basic + VDA, employees are getting following component
of their wages.

o House Rent Allowance

o Conveyance Allowance
o Tiffin Allowance
o Other Allowance
o Education Allowance
Wages agreement / revisions are done every four years in consultation with the union.
During the revision of pay / scale, the perks are also settled.

The employees are given variable dearness allowance (VDA) along with their pay scales.
This VDA is based on the All India Consumer Price Index (AICPI) which regulated after
every three months and applicable after the expiry of three months of the said period.

Executive Pay-scale:

In SMV Beverages (Jamshedpur), there is no set pay scale for the Officer/Executive. At the
time of appointment salary given to senior level officers and junior level is fixed considering
their education, experience & performance in the interview board.

Normally their salaries components are as follows:-

1. Basic
2. House Rent Allowance
3. Conveyance Allowance
4. Other Allowance

Employees are getting following types of leave.

 Casual Leave – 7 days in a year.

 Earned Leave – 20 days subject to maximum accumulation of 90 days.
 Sick Leave – 10 days subject to maximum accumulation of 35 days.


To run any organization you require manpower and the organization gets the manpower from

different resources. In earlier chapter (recruitment) we have already mention about the

resources of getting manpower. Once we have manpower in the organization. They are sent

to different department according to the need ability, knowledge, qualification and

experience. So the different departments equipped with the manpower. To run any

organization, manpower is an important asset. But as the bottling plant is fully automatic, the

man-power requirement is less at SMV Beverages (Jamshedpur).

Moreover, SMV Beverages (Jamshedpur), through runs throughout the year but its peak

period starts from March to June i.e. summer season. The production during these months is

at the top and so is the sale & during the off-season it drops. Jan, Feb & July to December

are considered to be the lean period for production as well as the sale. The organization is

having approximately 225 manpower. This includes SMV Beverages (Jamshedpur), and

other sister units like marketing co. Hyderabad Marketing Company.

SMV Beverages (Jamshedpur) and its sister concern, SCBPL and Hyderabad Marketing Co

has following manpower :


SMV Beverages 90 21 4

S.C.B.P.L 47 7 1

HMC 47 40 1


Promotions of Non – Executives:-

An employee is promoted on the basis of his performance and depending on the vacancy

in the next higher post.

Promotions of Executives:-

An employee is promoted on the basis of his performance and depending on the vacancy in

the higher post.

In SMV Beverage there is some advantages for the Executives.


Normally in SMV Beverages employees are not transferred but sometimes they are

transferred within the plant itself one section to another section. In Marketing Company the

marketing executive are transferred from one zone to another zone or from one territory to

another territory (3).

There are three territories – Jamshedpur, Ranchi & Dhanbad.

Every territory is headed by a TDM (Territory Development Manager).

Communication is the transfer of information and understanding from one person to

another.A way of reaching other with ideas, fact, thoughts and values.Communication

provides a bridge of meaning between two so that they can share what they feel and know

how to cross safety, the river of misunderstanding that sometimes separate people.It always

involves two people a SENDER and RECEIVER.

The main problem of personnel management is the problem of detailing the willing co-

operation of the people employed in divergent activities within an enterprise towards the

common goal. But what is often forgotten is that co-operation can be only come from well-

informed individual.

• If the enterprise is to hold its own the employees have to be brought to take a line of

interest in the company itself. In the repercussion they’re the changing outlook having

on management and man., the stress has to be laid on a “Fully informed” working

community. It is therefore essential to scrutinize working community. It is therefore

essential to scrutinize communication is within an enterprises.


To have a clear conception of ideas between SENDER and RECEIVER one must keep

the following element in mind.


sure your ideas is clear and simple. Communicate only

the idea in words or other symbols for transmission.

Identity to whom you wish to communicate. Ensure

that you are choosing the right persons to receive your idea.


The receiver make some use of the information. Ignore it, perform the task assigned,

stores the information etc. .

Allow time for the energy to reach the persons and for assimilation of the idea.

Taking your time and save your time.

That is to say the flow of information and ideas both upwards with the following

objectives in view:-

1. Satisfying basic human needs like recognition, self-importance and sense of

2. Discourage misinformation.
3. Preparing for change.
4. Encouraging ideas from subordinates. ++-
In the matter of improving information’s following play importance:

1. Hand Book.
2. Notice Boards
3. Standing Orders
4. Posters
5. House magazines


When any idea communicated or travels from top to bottom, is misunderstood

or distorted by the receiver due to whatever reason be, is communicat gap.


A sender sends the message to all employee of the organization to receive either directly or

through many channels, what would the result at the end o fate at receivers end?

SENDER –“A persons who smoke on the job, shall be dealt strictly and serious action will

be taken against them resulting even to dismissal.”

RECEIVER – “Person smoking will be dismissed.”



As per the Payment of Bonus Act, 1965 the workers arec paid the bonus and they are also

paid ex-gratia which agreed in join in consultations with union.

Loans and Advances:-

There is a facility given to the employees for loan against illness, marriage of son’s or

daughter, death, natural calamity etc. An employee can be granted two month’s salary after

completion of one year of service and three month’s salary after completion of 3 Years of


The advance / loan given are required to be repaid by the employees within 24 months.

Sometimes, the employee is also given advance against the salary, which is recovered, full

from the employee’s salary which is recovered, full from the employee’s salary which is

deducted from the salary of the following month in full.


The employees are also entitles for the following types of leave:

1. Earned Leave – Annual Leave with wages given in accordance with the Provisions of
factories Act.
2. Casual Leave – For 7 days in a year.
3. 8 Holidays Leave – The company gives 8 national and festival holidays in a year they
a) Republic Day – 26th January
b) Labour Day – 1st May

c) Independence Day – 15th August
d) Gandhi Jayanti – 2nd October

four festival holidays:-


Whenever any national holiday falls on Sunday it is adjusted towards other holidays in

consultation with the union. The social security provision are given to each employee to

protect them from extreme deprivation and insecurity. Following are the social security

legislation applicable to the employees in SMV Beverages (Jamshedpur)

The Employee’s state insurance (ESI) Act, 1948 this Act provides Six major types of benefit

for the insured workers-

o Sickness Benefit.
o Maternity Benefit
o Disabled Benefit
o Dependents Benefit
o Medical Benefits
o Funeral Benefits

The Employee’s Provident fund Act, 1972 provided a retirement benefit to the workmen. A

gratuity is a soft of an award, which an employer pays, put to his gratitude, to an employee

for his long and meritorious service, at the time of his retirement of

Complaints affecting one or more individual worker in respect of their wage payments,

overtime, leave, transfer, promotion, seniority, work assignment, working condition and
interpretation of service agreement, dismissal and discharges would constitute grievance.

Where the points at dispute are of general applicability or considerable magnitude, then fall

outside the scope of the procedure.

A Grievance Procedure should take the following principles:-

1. Conformity with existing legislation:-

A grievance procedure forms part of integrated scheme intended to promote satisfactory

relations between employers and workers. This procedure should be designed to supplement

the existing statutory provisions and it may, where practicable, take use of such machinery as

is already provided by legislation.

A Grievance machinery can be availed on respect by the worker of the order causing a

grievance.Whenever possible, attempts should be made to complete the grievance procedure

in time the order is passed and when it is acted upon.

2). Need to make the machinery simple and expeditions:-

a) The grievance should be tried to settled at the lower level.

b) It should not ordinary be taken more then two levels.
c) Different types of grievance may be referred to appropriate authorities.
d) A grievance must be redressed as expeditionly as possible and towards this end, the
employee is consultation with the worker, should decide upon the time limit
required for settling a grievance.

3) Designation of Authorities:-

The workmen must know the authorities to be approached and it incumbent on the

management to designate the authority to be contacted at various level.

It may be useful to classify grievance as those arising from personal relation and others

arising out of conditions of grievance should be taken up in the first instance, with the

authority in the line management immediately above the officer against whom the

complaint is made.

Thereafter, the matter may be taken to Grievance committee comprising representative of

management and workers.

Constitution of Grievance Committee

1. In case where Union is recognized:- Two representatives of management plus a

Union representative and the union departmental representative in which the
workman in concerned.
2. In the case where Union is not recognized or those in no Union but there is Works
Committee. Two representative of management plus representative of Department of
workmen concerned as the works committee plus either the Secretary or Vice
President of Works Committee.
The size of the Grievance Committee should be limited to a maximum of four, six, otherwise

it becomes unwieldy.

` “Training is the of increasing the knowledge and skill of an employee
for doing a particular job.”or Training is a short term educational process and utilising
a systematic and organized procedure by which employees learn technical knowledge
and skills for a definite purpose.


• Improves the morale of the workforce.

• Helps create a better corporate image.
• Improves the relationship between boss and subordinate.
• Aids in organizational development.
• Learns from the trainee.
• Helps prepare guidelines for work.
• Helps people identify with organizational goals.
• Aids in development for promotion from within.
• Improves labour management relation.
• Reduces outside consulting cost by utilizing competent internal
• Aids in improving organizational communication.


“Development is a systematic process of growth and development by
which the managers develop their abilities to manage ,or it is concerned with
improving the performance of the managers by giving them opportunities for growth
and development, which in tern depends on organasation structure of the company.”

Important Method Of Development

On –the- job techniques Off –the-job Techniques

Coaching Job Rotation Understudy Multiple Management

The Case Method Incident Method Role Playing In Basket Method Business Game Sensitivity Training

Simulation Grid Training Conferences Lectures

“Any combination, whether temporary or permanent formed primarily for the purpose of
regulating between workmen and employers or between workmen and workmen employers
or between workmen and workmen or between employers and employers or for imposing
restrictive condition of any trade or business, and federation of two or more trade union.”
The term “Trade Unions” has been defined by many eminent authors as follows:-

“A Trade Union is a continuous association of wage-earners for the purpose of protecting

and advancing the conditions of their working lives.”
- Webbs
“A Trade Union is a continuous long-term association of employees, formed and maintained
for the specific purpose of advancing and protecting the interest of the members in their
working relationship.”
- Dale Yoder
“A Trade Union is a continuous association of persons in industry – whether employer or
independent workers – formed primarily for the purpose of the pursuit of the interests of the
members of the trade they represent.”
- S. D. Punekar
The Trade Union Act, passed in 1926, was brought into operation from June 1, 1927. It was
amended in 1947, 1960, 1962 & 1982. The act was mainly enacted to provide for the
registration of the trade union and verification of their membership so as help them acquire a
legal and corporate status.

Recognition of Trade Union

Where there is more one union claiming recognition should have been functioning for at

least one year after registration.

o Membership should be counted only of those who had paid subscription at least for 3

months during the period of 6 months immediately preceding reckoning.

o A Union may claim to be recognized as a representative union for an industry in local

area if it has a membership of at least 25% of that industry in that area.

o When a union has been recognized there should be no change in its position for a

period of 2 years.

o Where there are several unions in a industry or establishment the one with the largest

membership should be recognized.

Trade Union are normally affiliated to some political parties or their federations.
o INTUC – Affiliated to Congress – Indian National Trade Unions
• Congress.
o AITUC – Affiliated to Communist – All India Trade Unions
o HMS – HIND Maha Sabha Sangh
o BMS – Bharat Mazdoor Sangh

SMV Beverages has a trade union named as Adityapur Worker’s Union it is affiliated with
Congress. This Union is a recognized union by the management. Every union must be
registered under. Trade Union Act. Minimum number of persons required to from a union is
seven & they have to register under the Trade Union Act. The Union after registration they
form a committee.
This committee normally constitute as follows:-
1. President
2. General Secretary

3. Secretary
4. Assistant Secretary
5. Treasure
6. Committee Member

To be recognized Union it must have 2/3rd manpower of the total strength of the
organization. It is the discrimination of the management to whom it recognized.

1. Factory Act 1948.
2. Industrial Dispute Act, 1947 & Rules.
3. Payment of Wages, Act 1936
4. Minimum Wages, Act 1948
5. Maternity Benefit, Act 1961
6. Employees Provident Fund, Act 1952
7. Employees State Insurance, Act 1948
8. Contact Labour (Regulation and Abolition), Act 1970
9. Industrial Employment (Standing Order), Act 1970
10.Motor Transport Workers, Act 1961
11.Payment of Bonus, Act 1965
12.Trade Union, Act 1926
13.Workmen Compensation, Act 1923
14.Apprentice Act, 1961
15.Employment Exchange (Compulsory Notification of Vacancies) Act 1959
16.Food Labeling Regulation
17.The standards of weight and measures (Packaged Commodities) rules, 1977

The Factories Act, 1948 came into force on April 1, 1949. The Act provides for the

regulation of the employment of labour in factories. The objective of the Act is to secure,

health, safety, welfare, proper working hours, leave and other benefits for worker employed

in factories.

The main provision for the Act are:

o Regulate the working conditions of labor in factories.

o Ensure basic minimum requirements for the safety, health and welfare of workers.

o Enforce compulsory approval, licensing and registration of factories to regulate the

established and growth of factory.

o Provide guidelines on the health measures, safety measures and welfare measures to

be taken by the management.

o Regulate the working hours of employees to provide for adequate rest.

o Regulate the employment of women and young person.

o Provide guidelines to the management for employee benefits like annual leave


o Provide guidelines to prevent and deal with accidents or occupational diseases also

for handling dangerous operations.

A factory as per Section 2(m), means any premises including the precincts thereof – (i)

wherein 10 or more workers are employed on any day of the preceding 12 months and a

manufacturing process is carried on with the aid of power, or (ii) wherein or more workers

are employed on any day of the preceding 12 months and a manufacturing process is carried

on within the aid of power.

From the above definition of ‘factory’ it may be concluded that –

i) A factory need not be situated in any one premises only.

ii) The premises must be such as in any one part there of a manufacturing process is

being carried on.

Salient feature of factories act:-

1) Health
• Cleanness, disposal of waste and an effluents, Ventilation and Temperature.
• Proper Lighting
• Drinking Water
• Latrine urines
• Spittoons

2) Safety
• Fencing of machinery
• Self-acting machine
• Pressure plant
• Protection of eyes
• Excessive weight

• Maintenance building
3) Provision related to Hazardous process.
• Welfare activities
• Washing facilities
• Facilities for storing and drying cloth.
• Canteens
• Rest shelters
• Crèches
• Weekly Holiday
• Compensatory for overtime
• Extra wages for overtime
• Restriction and all double employment
• Intervals for rest

 Employment of young persons

 Annual leave with wages
 Penalties and Procedure
 Display Notice, Maintain Register and Submit Returns
 General Duties as regards Articles and substances for use in Factories.
 Notice of accidents, Dangerous Occurrence and Diseases.
 Registration / Lin\cense and Notice by Occupier
 Compulsory approval
 Notice to change of Manager

The Industrial Dispute Act 1947 was designed to provide a self-contained code to compel the
parties to resort to industrial arbitration for the resolution for existing or apprehended dispute
without prescribing statutory norms are varied and variegated Industrial Relation norms so
that the forums created for resolution of disputes may unhampered by any statutory control
and devise relational norms keeping pace with improved Industrial Relation reflecting and
imbibing socio economic justice. Industrial Dispute Act 1947 mainly deals with dispute
related to employer and workmen, workmen & workmen, strikes,, lockout, retrenchment,
layoff, termination, award etc.

Strikes means a cessation of work by a body of person employed in any Industry acting in a
combination or a concerted refusal, or a refusal under a common understanding, or any
number of person who are or have been so employed to continued to work or to accept
1. Without giving the employer notice of strike as here in after provided with 6 weeks
before strikes.
2. Within 14 days of giving such notice.

It mean temporary closing of a place of employment the essence of lock out is the refusal of
employer to continue to employ workmen.

1. without giving the employer notice of strike as here in after provided with 6 weeks

before strikes.

2. Within 14 days of giving such notice.


It means the failure, refusal or inability of an employer on account of shortage of coal, power

or raw material or the accumulation of stock or the break down of machinery, natural

calamity to give employment to the workers whose names are on the musteroll.

Who can be layed off?

When a workmen who comes on time but waits for 2 hours and finding to work can be


Even after that if he is not provided work by the management then again the workers layoff

will continue for a maximum period of 45 days.

If further he is not given any work the worker is retrenched.


It means the termination by the employer of the services of workmen for any reason what so

ever. But doesn’t include a punishment inflicted by way of disciplinary action, but does not


Voluntary retirement of the workmen.

1. Retirement of the workmen on reaching the age of super annuation.
2. Termination of the service of workmen on the ground of continued ill-health.
3. Termination of services of the workmen as a result of non-renewal of contract.

When both the parties management as well as unions do not come to any settlement they
might decide themselves to go to arbitration for settlement for settlement of the dispute or
when a case is been referred to a Government machineries government may also refer the
matter to a arbitrator appointed by the Government.
Where any Industrial Dispute exist or is apprehended and the employer & workmen agreed
to refer the dispute to arbitration they may at any time before the dispute has been referred
under section 10 to Labour Court, Tribunal or National Tribunal by a written agreement
referred the dispute to arbitration and the reference of the same will be made to above

When settlement is arrived between both the parties it is known as settlement.
Who are covered by this Act?
Every person employed in an establishment for hire or reward (contract, labour, apprentice,
part-time employee) manual, critical, skilled, unskilled technical, operational or supervisory.
But does not include:
1. Person employed mainly in a managerial or Administrative capacity.
2. Army Act, Air Force, Navy, Police Service officer employee of person.

Who can raise a dispute?

A dispute is said to have a rise when some demand is made by the workmen and it is rejected
by the management or vice-versa.

It means an interim or a final determination of any industrial disputes.

It means all remuneration capable of being expressed in term of money be payable to a
workmen in respect of his employment or the work done in such employment & include.
1. Such allowances as the workmen are for the time being entitled.
2. The value for any house accommodation.
3. Any traveling concession.

It means any person employed in any Industrial to do as manual, unskilled, technical
operational, clerical or supervisory work for hire or reward and for the purpose of any
proceeding under this act in relation to any industrial dispute.

As per section 2(h) of the Act – “Wages” means all remuneration, capable of being
expressed in terms of money, which would, if the terms of the contract of employment,
express or implied, were fulfilled, be payable to a person employed in respect of his
employment or of work done in such employment but does not include-
1) The value of-
i) Any house accommodation, supply of light, water, medical attendance, or
ii) Any other amenity or any service excluded by general or special order of the
appropriate Government.
2) Any contribution paid by the employer to any Pension Fund or Provident Fund or under
any scheme of social insurance.
3) Any traveling allowance or the value of any traveling concession.
4) Any sum paid to the person employed to delay special expenses entailed on him by the
nature of his employment; or
5) Any gratuity payable on discharge.

The State Government they fix up the minimum wages for the workers working in the
Scheduled Employment. The Minimum Wage Act also workers are defined as highly
skilled, skilled workers & Semi skilled workers.
Earlier the consolidated minimum wages were fixed by the State Government but later on
they were also awarded with VDA. VDA is calculated on the consumer price index. This
VDA is calculated on six monthly price index and is paid after the expiry of three months.

The Payment of Wages Act Passed in the year 1936 was enforced in March, 1937 on the

recommendations of the Royal Commission of Labour in India. The objective of the Act was

to ensure regular and prompt payment of wages for the workers and to prevent the

exploitation of a wage earner by prohibiting arbitrary fines and deductions from his wages.

The Act defines the term “Wage” as

- any remuneration payable under an award or settlement,

- any remuneration payable for overtime work, holidays or leave period,

- and any other remuneration payable under the terms of employment whether it is called a

bonus or any other name.

The main provisions for the Act are:

o Responsibility of the employer for payment of wages.

o Fixing the wage period.

o Procedures for wage payment.

o Payment of wages to discharged workers.

o Permissible deductions from wages.

o Nomination to be made by employees.

o Penalties for contravention of the Act.

o Equal remuneration for men and women.

o Obligation and rights of employers.

The payment of wages act mainly deals with the service conditions and timely payment of
wages to the workers by them.
It also deals with the time schedule for payment of wages.
It also deals with deductions:-

1. Loans and advances.
2. Fines
For this the management has to maintain the registers.

The Employee’s State Insurance Act, provides for certain benefits to employees in case of
sickness, maternity or any injury. It is the responsibility of the employer to ensure that both
the employer and the employee contribute to E.S.I. (Employee’s State Insurance) Account at
the end of each wage period. As per the Act, the employer has certain obligations towards
the employees and also towards the Employee State Insurance Corporation.
The main objective of the Employees’ State Insurance Act, 1948, is to provide to the workers
medical relief, sickness cash benefits, maternity benefits to women workers, pension to the
dependents of deceased workers and compensation for fatal and other employment injuries
including occupational diseases, in an integrated from through a contributory fund. Where a
workman is covered under ESI Scheme, no compensation could be claimed from his
employer under the Workmen’s Compensation Act in respect of employment injury
sustained by him.
Six major benefits are:-
1. Sickness Benefit
2. Maternity Benefits
3. Disabled Benefits
4. Dependent’s Benefits
5. Medical Benefits
6. Funeral Benefits
Every employee w ho is in the wage group up to Rs. 7500 (including casual and temporary
workman) is entitled to this Act.
The employees are require to contribute at the rate of 1.75% of the total wage (Rs. 7500) as
employee’s contribution and the employer will contribute 4.75% as employer’s contribution,
which becomes 6.50% total ESI.


Total amount of wages paid = …………………..

Total no. of days for which
Wages are paid

1. Sickness Benefit:
Every insured employee is entitled to the cash benefit for the period of sickness occurring
during any benefit period and certified by a duly appointed medical practitioner if the
contributions in respect of him were payable for not less than half the number of days in the
corresponding contribution period. The benefit is payable at the standard benefit rate,
corresponding to his daily average wages. The benefit is, however, not payable for any day
on which the employee works, remains on leave, holiday or strike, in respect of which he
receives wages.
A person will receive sickness benefits:
a) Shall remain under medical treatment at the ESI dispensary or hospital and carry out
the instructions of the medical officer;
b) Shall not do anything which retards or reduces his chances of recovery;
c) Shall not leave the area where medical treatment is provided without medical officer’s
d) Shall get him examined by the medical officer.

2. Maternity Benefit:
A periodical cash benefit is payable to an insured women employee, in case of confinement,
miscarriage, medical termination of pregnancy, premature birth of a child, or sickness arising
from pregnancy, miscarriage, etc., occurring or expected to occur in a benefit period, if the

contributions, in respect of her were payable for at least 80 days in the two immediately
preceding contribution periods.
The benefit is payable only if the women employee does not work during the said period,
and the prescribed medical certificate and other information are furnished.
Medical bonus – Rs. 250 on account of confinement expenses shall be paid to an insured
women and an insured person in respect of his wife, if confinement occurs at place where
necessary medical facilities under ESI Scheme are not available.
3. Disablement Benefit:
This is paid in the form of cash in installment to an employee who is injured in the course of
his employment and is, permanently or temporarily, disabled, or contacts any occupational
disease. It is sufficient if it is proved that the injury was caused by an accident arising out of,
and in the course of employment, no matter when it occurred, and where it occurred.
However, the place or time of accident should not be totally unrelated to the employment.
The accident shall be deemed to have arisen out of and in the course of employment unless
there is evidence to the country.
4. Dependent’s Benefit:
If an employee dies as a result of any injury sustained in the course of his employment or an
occupational disease, his dependents shall be entitled to a benefit in the form of pension. The
dependent’s benefit is payable at 40% more than standard benefit rate.
5. Funeral Expenses:
If an insured employee dies, the eldest surviving member of his family or the person who
incurs the expenditure of funeral of the deceased employee is entitled to reimbursement of
such expenditure subject to a maximum of Rs. 1500. the claim for the payment of funeral
expenses should be submitted in the prescribed from along with prescribed documents within
3 months of the death of insured employee.

The step leading to excellent teamwork.

Step one: Alignment: goals are set, strategies clarified, roles accented.

• Team members are interested, keen, hopeful and positive.
• They are also uncertain regarding their own roles and how to work with other
• Trying out different ways of interacting with the key individuals and the overall work
• Relaying on structure and power.
• Individuals ascertain their function and status within the team and relation to the
team’s purpose.

This step is complete when:

• Each member of the team knows and can communicate the purpose of the team.
• There are specific, unambiguous, demanding objective, which will that purpose.
• Strategies for achieving those objectives are understood.
• Each member understands their individual contribution to the team, and in achieving
the objective.


• Clear procedure and communication.

• Authority and structure required.
• Directive leadership.

Step 2 : Realization : the task begins in earnest and difficulties become apparent.

• Team members are aware of the gap between expectation and what happens in
• They are uneasy with reliance on organizational power structure.
• Conscious of failing short: looking for something to blame.
• Angry often uncommunicative about the defect seen in goal controls, objective,
• Resistant or uninformative or uncooperative with one another and authority figures.
• Feeling of helplessness, bewilderment, uncertainly, insecurity.
• Rivalry with other team members for influence, benefits, credit.
For task well done
• Sense of ineffectiveness and chaos.


• Team members understand and appreciate the extent of their power, individually and
as a group.
• Members are able to perform the task, with necessary personnel, information and
• They know how to work within existing limitations.
• The attitude and policy of the organization is consistent with the team’s objectives.
• Team members are demonstrably co-operative and helpful to one another.
• Varying points of view and approaches are appreciated.
• There is honest expression and readiness to be inclusive rather than divisive.


• Learn and apply the skill of active listening appreciating one another as follows
• All team members, including leaders, need you practice these skills in order to move
on from the necessary and creative (although uncomfortable) stage of realization.
• The leader encourage and guides.

Step 3: INTEGRATION : learning to work together effectively & Satisfactorily.

• Team members share responsibility and control with one another and with member of
own department.
• Individuals experience increasing satisfaction.
• The gap between hope and actually is bridged.
• Different points of view are valued.
• Bad feelings between members are relinquished.
• Co-operation, mutual respect, trust, consideration for one another are continually
• Collective and individual self-respect and self-confidence grow.
• Team members are able to give and receive constructive feedback, discuss and
achievements and setback easily.
• A shared vocabulary special to this team develops.

“To be an integrated team, behaves as if you, already are integrated, and will experience all
the benefit of integration.”

Step 4: ACHIEVEMENT: efficient productivity
• Excellence in production
• Co-operative involvement with the team and sub-groups of the term.
• Experiencing the cohesive ability of teamwork.
• Trusting in capability and effectiveness.
• Shared leadership according to the situation.
• Rejoining in successes. Interest in failures.
• Enthusiastic about teamwork.

The payment of Gratuity Act, 1972 was enacted to introduce a scheme for payment gratuity
for certain industrial and commercial establishments. The Act came into force from 16th
September 1972. As per the Act, ‘Gratuity’ will be payable to any salaried employee, on the
termination of his employment after he has rendered continuous service for not less than five
years (a) on his superannuation, or his retirement or resignation or death or disablement due
to death or disease. In case of death, gratuity is payable, even if the employee has not
completed five years of service.
It is responsibility of the employer to pay gratuity to the employee, failing which he would
be penalized accordingly.

What is gratuity?
When an employee attains the age of super annotation he is entitled to get gratuity.
Gratuity is a sort of an award, which an employer pays out of his gratitude, to an employee
for his long and meritorious services, at the time of his retirement or termination of his
services. Payment of gratuity is, however, compulsory for employers in certain units and
establishments to establishments to which the payment of Gratuity Act applies.

Meaning of Wages:
‘Wages’ for the purpose of calculating gratuity shall be the wages last drawn by the
1. He has completed 5yrs of service or
2. Dies during the service period before 5yrs or
3. Become permanently disabled.

Gratuity is paid on basic & DA last drawn.

Calculation of Gratuity:-

= last wage drawn*No. of years of service* 15


26 days because 4 Sundays are excluded instead of 30 days.

We have to nominate someone to get the amount of gratuity after his death an employee has
to fill up a nomination from for nominating any of his relatives (wife, son, daughter, father,
etc) Wholly or partially for claming after his death.

What is the maximum amount of gratuity payable?

Maximum gratuity payable is 3.5lakhs but some of the private companies pay more then this
amount irrespective of the limit. 3.5 lakhs rupees in not taxable but if any company pays
more than the excess amount paid as gratuity the difference is taxable.

It is a benevolent social legislation. It aims to achieve a laudable objective for the protection

for the protection of labour by providing uniform & stable conditions of service.

These Standing Orders will come to force form a date to determined in accordance with

provision of the Industrial Employment (Standing Order) Act, 1946 and shall apply to all

workmen employment in all units of M/s. SMV Beverages (Jamshedpur) situated in different

place in the country, which come within the definition of industrial establishment as defined

in the industrial of (employment standing orders) Act, 1946.

The company may formulate such rules and regulation and post such notice, as it may time

to time consider necessary for running the factory.

General notice required by these standing orders shall be displayed on the notice board

maintained for the purpose. If it pertains to an individual, it shall be communicated to him

through peon book and if he is absenting from work, by under certificate of posting or

registered post.

The company may from time to time amend these orders in according with the provisions of

Industrial Employment (Standing Order) Act, 1946 or any amendment thereof.

Classification of Workman:

For the purpose of these standing orders workman shall be classified as follows:-

a) Apprentice

b) Badti or Substitute

c) Casual

d) Permanent

e) Probationer

f) Temporary

Requirement of workmen –

All requirements shall be done in accordance with the requirement rules. Candidate for

recruitment should not be less than is year of age. While making recruitment, performance

may be given as under:

a) Ex-Employees with good work and conduct.

b) Near relative of employees.

c) People of locality and

d) People of state.

Industrial Establishment where in 100 or more workmen are employed, this Act applies to

such Industries.

This mainly deals with the service conditions of the employees

Service records.


Working norms



Retirement age

Age verifications

Age Determination

Change of Place


Under this Act, it is the responsibility of the employer to get the Standing Orders Certified

by the concerned Authority. But where the employees are less than 100 there Model

Standing Orders are applicable.

Every organization has certain code of conduct based on the Industrial Employment
(Standing Order) Act of 1946 and if an employee violates these conduct they are known as
1. The change should be very specific i.e. the date, time and place of occurrence must be

2. The person should be given the opportunity to known the allegations made against
3. The person should be given fair opportunity of being heard.
4. Decision should be made in good faith.
5. The man should not be judged in this own cause.

The SMV Beverages (Jamshedpur) had its own Standing Orders Application to the workers.
If any worker violets the discipline rule, then he is liable for the disciplinary action taken
against him.
Following are the steps understanding in a domestic enquiry:-

Preliminary Enquiry
This is initiated on receipt of a complaint against a particular worker who has any
misconduct in the course of his employment. This is done to see whether the matters a
detailed enquiry or should be dropped.
Issue of charge sheet: This is a memorandum of charge or allegation of misconduct against
a workman, issued by the competent authority.
1. Explanation to charge sheet: After serving the charge sheet, the workmen should be
afforded a reasonable time to submit his explanations in respect of the charge levied
against him. Normally 72 hours are given to submit the reply if the workmen is
working or in the station. In case of outside the station, 7 days on the receipt of the
charge sheet.
2. Appointment of Enquiry Officer: The Enquiry Officer may be an officer of the
establishment who should be an open minded and unbaibed.
3. Notice of Enquiry: The Charge Sheeted employee must be served with a notice of
holding an enquiry, given him information as to the name of the Enquiry Officer, the
date time and place of the enquiry.
4. Initiation of proceeding by Enquiry Officer: On the date of enquiry, first of all the
charges levied against the accused employee should be read out and explained to him.

5. Procedure of leaving evidence by the Management: The management
representative shall lead the evidence in support of the allegations levied against the
employee. He should narrate in detail the circumstances under which the misconduct
was done, supported by documentary evidence, if any.
6. Examination of Witness: First of all, the employer’s witnesses in support of charges
are examined one by one. After the witness has finished his evidence, the employee or
his representative should be given opportunity his statement and examine his witness,
his witness in defense of charges made against him. He is then cross-examined along
with other witness by the representative of the management.
7. Report of Enquiry proceedings: Finally, Enquiry Officer and back the report to the
disciplinary committee for the final judgment.



 Theft fraud or dishonesty in connection with employees business or property.

 Taking or giving bribe or illegal gratification in connection with employee’s business in
his own interest or money lending.
 Willful insubordination or disobedience whether alone or in conjunction with another or
other of any lawful or reasonable order of a superior.
 Gambling, Drunkenness fighting or riotous disorderly or indecent behavior, using
filching language with other of employee supervisor either at his work place of work or
at establishment or company’s residential settlement.
 Willful neglect of work or gross or habitual negligence, loitering, idling or wasting time
during working hours or malingering or remaining on company’s premises after
authorized hours of work without permission.
 Smoking in the place it is prohibited.
 Resorting to go slow or inciting to resort to deliberated “go slow policy”.
 Conviction in any court of law for any criminal offence involving moral turpitude.
 Giving of false information regarding one’s name, age, father’s name qualification etc.
in connection with his employment.
 Going on illegal strikes either singly or other’s workers without giving 14 days previous
notice or instigation to an illegal strike.
 Sleeping on duty.
 Acceptance of gift from subordinates workmen of contractors.
 Distributing or exhibiting in the Company’s work premises or estates, hand bills,
pamphlets, posters or causing them to the displayed by means of signs or writing or
other visible representatives, any matter prejudicial to the company without prior
sanction Management.
 Organization holding attending or taking part in any demonstration within company’s
work premises or estates in contravention exposes to deposit of the provisions of the law
or regulation of the company.
 Conduct within the factory premises or its precincts which endangers life safety of any
 Allowing unauthorized person to operate company’s vehicle or machinery without
permission of competent authority.
 Possession of unlicensed arm or lethal weapon within the company work premises or its
 Malingering.
 Leaving work without permission or sufficient reason.
 Refusal to wear or use any protective / safety equipment / uniform given by the

 Taking up employment / private work with other employer or carrying on any business
or trade while still in the service of the company without permission of the
 Instigation, incitement, abetment of any act misconduct.
 Deliberately spreading false information / rumor with a view to bringing about
disruption in company’s work.
 Holding meeting within the factory or establishment premises without previous written
information to the management or permission.
 Refusal to work on another job or on another machine.
 Failure to carry out work in accordance with general or specific instruction given by
Supervisor / Officer of the company directly through delegated authority.
 Refusal to accept transfer from one shift to another or from one section or department to
another or from one place to another whether locally or out of station or from one
establishment under the same management.
 Taking out of the works any articles or material belonging to the company without a
gate pass issued by the company.
 Refusal to undergo periodical medical examination by company’s doctors.
 Threatening, intimidating, coercing other employees or employees, interfering with the
works of other employees or employees assault or attempt to assault or threat of assault
either provoked or otherwise within the workshop premises or outside having
subversive effect or workshop discipline.
 Marketing or giving false statement before a superior, the signature of a superior.
 Failure to report to his superiors or manager any defeat in the equipment or records
connected with his works or which might result in damage to companies or person
property or endanger himself or any other person.
 Failure to observe safety instruction / Rules.
 Not taking proper care of tools, gauge, figs, fixture or drawing or proper maintains of
record etc.
 Violation of any clause of these standing orders.
 Any breach of factories Act, 1952 or any mother Act / Rules, Regulation or law here

 Sexual harassment includes such unwelcome sexual determined behavior (whether
directly or by implication) as-
a) Physical contact and advance; or
b) A demand or request for sexual favors;
c) Sexual colored remark; or
d) Showing pornography;
e) Any other un-welcome physical, verbal or non verbal conduct of sexual nature.

Punishment for Misconduct:

1) A workman should be liable to be dismissed if he been guilty of a major misdemeanor. A

workman dismissed for major misdemeanor shall not be entitle to any notice or pay in lieu of

notice and therefore shall not be entitled to any benefits or privileged provided by the

company unless it is required to be done under and law in force the time being.

2) The Company may at its discretion give a workman the following punishment in lieu of
o Censure or Warning, or
o Suspend him (without pay) for a period not exceeding 4 days or
o With-hold his increment or demote or discharge him.

Important feature of Domestic Enquiry

1) Till the enquiry is carried on and a decision is arrived at the accused

employee can be suspended on the suspension period.
2) If the accrued person want to take help of his colleagues, then those
persons, person are relieved of the work on the date of enquiry for facilitating the
3) During the period of suspension, the employee is not supposed to leave
the station without prior written permission of the authorities.
4) The property of the organization if any involved in the offence should
be produced before the enquiry officer.
5) The enquiry officer is not supposed t make any recommendations.

The Payment of bonus Act 1965 is the outcome of the recommendations made by the

tripartite commission, which was set by the GOI way back in 1961. The Act was

promulgated on May 26, 1965. Subsequently it was accepted by the parliament and

accordingly in the year 1965, the Payment of Bonus Act was enacted. The Act was amended

in 1969, 1975, 1976, 1977, 1978, 1980, 1985 and 1995.

The main objectives of the Act are:

To impose statutory obligation on the employer of every establishment defined in the Act, to

pay bonus to all eligible employees working in the establishment. .

To outline the principles of payment of bonus according to the prescribed formula.

To provide for the payment of minimum and maximum bonus and linking the payment of

bonus with the scheme of “set-off” and “set-on”.

To provide necessary machinery, to enforce the payment of bonus.

The payment of Bonus Act, 1965 aims at providing for bonus (linked with profit and

productivity) to employees of every establishment wherein 20 or more workmen are

employed on any day during an accounting year. Every employee receiving salary or wage

up to Rs. 3500 p.m. and engaged in any kind of work, whether skilled, unskilled, managerial,

supervisory or manual is entitled to bonus for every accounting year if he worked for atleast

30 working days in that year. The minimum bonus, which an employer is required to pay,

even if he suffers losses during the accounting year is 8.33% of salary or wages during the

accounting year.

If an employee has not worked for all the working days in an accounting year, the minimum

bonus payable to him for that year shall be proportionally reduced; Bonus should not exceed

20% of the salary or wages of the employee.


Pay of bonus Act 1965 under this act the employees working in any organization over an

establishment are entitled to bonus subject to following condition.

i) The employee must have minimum or 30days attendance in a year (financial).

ii) Minimum bonus is payable at the rate 8.33% of basic and VDA max. of 20% and

an employee who is getting the wages (basic and VDA) upto 10,000 Rs./month but

the calculation is made on 3,500 Rs. / month as if the worker is earning i.e.


In SMV; SCB Pvt. Ltd. & Hydrabad marketing employees are getting 8.33% bonus as per

the above rule plus 1,100 Rs. / annum as productivity. As per agreement with union

management is paying 8.33 as bonus and remaining 11.67 % is being paid as exgratia.

Bonus is a part of profit, but if the company is running it will have to pay bonus as per the

laws to the employees (Even when the company is running at loss).

The person who are getting Rs. 3500/- per month (Basic + DA) is eligible to get bonus.

But SMV Beverages is paying bonus to those employees who are getting more then Rs.

3500/- as their monthly salary. But it is paid in the form of exgrateia.

SMV Beverages is paying Bonus + Ex-gratia at the rate of 20% maximum of Rs. 6000.

Apart from the company is giving Rs. 400 as productivity link + Rs. 450 as Diwali gift.

In some of the private organization is not having limitation of Bonus.


The Minimum Bonus, which an employer is required to pay even if he suffers losses during
the according year, is 8.33% of the salary / wages during the accounting year.

Mode and Time Limit for the payment of Bonus. Bonus should be paid in cash and within 8
months from the close of accounting year.

Bonus is payable only annually and it cannot be directed to the paid on half yearly basis.

Contract Labour (Regulation And Abolition) Act, 1970

1. This act applies to every establishment in which 20 or more workmen are employed
during the preceding 12-month.
2. This act mainly deals to prohibit employment of contract labour and to regulate the
working entities of contract labour wherever such employment is not prohibited.
3. License of contractor: Every contractor who engaged more than 20 workmen, has
obtain a license from the concerned government authority.
Compulsory which is required statutory every contractor has to maintain forms and
regulation prescribed in the act.

Annexure 1
Appraisal Confidential Report PERFORMANCE APPRAISAL FORM
Report for the period
From ………… April ……………To…… March……………………..
Name : -
Shri / Smt ……………………………………………………………….
Designation ……………………………………………………………..
Unit / Branch ……………………………………………………………

Note:- The report should have comment under the following handling. Viz.

1. Professional and Technical:

2. Administration and Financial including cost consciousness:
3. Personality:
4. Decision making and judgment:
5. Integrity (If anything adverse has come to
your notice please specify it also.)
6. (a) Performance (Organization of work and initiative).
(b) Performance against targets/task/objectives assigned.
Targets/tasks objectives assigned. Assessment of performance
Against each target / task /
Objective (fulfilled/Partly
Fulfilled/not fulfilled)

(c) Constraints / unforeseen difficulties, if any, which the executive had to face during the
year under report and which affective his performance adversely, with regard to each target /
task / objective.

Appendix – III (Contd.)
OVERALL APPRAISAL: Tick appropriaappropriate box and initial.

Unproved Unsatisfactory Barely Adequate Adequate

Good Very Good Outstanding

GENERAL: Mention here the punishments, censures, special commendations etc. if any,
during the period under report. Also mention outstanding achievement by the employees, if
any, during the period.
Station: Signature of Appraiser
(Name in Block Letter)

Remarks of the Department Head: (First Level Review)
Unproved Unsatisfactory Barely Adequate Adequate

Good Very Good Outstanding

Station: Signature of Appraiser
(Name in Block Letter)


Performance Appraisal for Junior Employees

Office of the ……………………………………………………..…
Report for the year ending ………………………….……………
(Strike out columns not applicable).

1. Name of employee
2. Date of birth
3. (a) designation
(b) grade
(c) nature of duties
4. Educational qualifications
5. Date of joining department.
6. Preceding Department / Section of posting
7. Date of continuous appointment in the present grade
8. Whether permanent or temporary
9. Period for which the employee has
Worked under the Reporting Officer
In the year.
10. Professional / Technical / General
Knowledge and application.
11. If a Supervisor:-
Very Good Good Average Poor
a) Capacity to plan,
organize and execute

Appendix VI (Cont.)

b) Delegating duties to any taking

work from subordinates, exercising
effective supervision and control,
maintenance of discipline and leadership
2. Dose he raise occasions? Very Good Good Average Poor
3. Cost consciousness Yes No
4. Punctuality in attendance Yes No
5. Maintenance of official records Punctual Irregular
6. Accuracy and speed Very Good Good Poor
7. Capacity to express Very Good Good Poor
8. His he met with any accident while
handling Company machines and
Equipment’s? If so, please give details
9. Dose he keep his machines and
Yes No
equipment in good order?
0. Skill in discharging his present duties Very Good Good Poor
1. Has he been warned for any failure or
any inadequacy in the year in writing
or orally? If so, give brief details.
2. Relations with colleagues and fellow
Very Good Good Poor
3. Was any disciplinary action initiated
against him during the period under
report and if so, the result.
4. Devotion to duty.
5. Loyalty and honesty
6. Does his health interface with his
7. Fitness for confirmation/promotion.
8. General remarks, if any “Out Standing “ “Very Good”
“Good” “Average” “Poor”
9. Overall grading

Sign. Of Reporting Officer

Appendix VI (Cont.)
Name (in block letters) of the
Reporting Officer
Designation ………………………
Date : ………………………


“Out-Standing” “Very Good” “Good” “Average” “Poor”
Signature of Reviewing Officer
Name (in block letters) of the Reviewing Officer

Date …………………………


For employee who use company provided bus to reach the campus, what awaits them in an
environment, which is open, friendly, warm and flexible.

Its comfortable feeling to be employed at SMV Beverages (Jamshedpur). All I really need to
do is well just my job. And when I need to take a break from the job, there is arrest room.

The best thing about SMV Beverages is that it has a flat structure, which facilities faster

Being a franchisee of Pepsi Foods, it attracts the best talent in the company. And then,
having got in professionals, SMV Beverages (Jamshedpur) manages a fairly good retention

The exit barrier, which SMV has built, is a job content and long service award.

Mind you all this comes without a jumbo compensation package.

The charisma of its technology is best exhibited in this bottling plant. The whole process of
production and bottling is fully automatic. Through it has replaced manpower, but it
otherwise facilities mass-production and ensures quality. Product to the customer.
The relationship between the workers and the management is impressively amicable. Very
low absenteeism shows the high morale and enthusiasm of workers. Uniform dress code in
the organization shows the uniformity and unity among employees.
The production process of SMV Beverage (Jamshedpur) is fully automatic and hands
nowhere touch the liquid in the bottles.


1. Introduction to Human Resource Management

2. Google Search (On Internet)

3. Wikipedia Search (On Internet)

4. News Paper

5. Annual report of SMV beverages