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Comparison of HR policies of Public & Private Sectors

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

Company Profile
BPCL Integrated Petroleum Refining And Marketing Company Fortune 500 & Forbes 2000 Company Revenue US $ 28 Billion Per Annum 14000 Employees People Above Oil NESTLE Large International food manufacturer Net profit :$10.43 Bn Operates in 86 Countries Employees : 2,86,000 worldwide

HR Policy
BPCL Great Place to Work Fosters effective value-based HR processes Competitive edge Personal vision The thrust areas include Performance Management Competency Modeling Identifying Competency gaps Multi-skilling Nestle Prerequisite : Respect and trust for intolerance, harassment or discrimination Transparency and honesty boosts continuous improvement Sharing competencies and boosting creativity Open conversation with superiors or colleagues Willingness to cooperate and to help others (promotions) In case of disharmony amongst employees : fair hearing

BPCL Takes place at junior level Company believes : Building its human potential rather than buying Increase sales force : retraining and redeployment Average age profile : 35-40 years. Job Rotation system Responsible position : work experience (3 dept.) Engineers : IITs, NITs whereas MBAs are recruited from XLRI and IIMs. Nestle Hires staff with personal attitudes and professional skills (long-term relationship) For managerial position: leadership qualities and business acumen are required. Contacts with universities, attendance at recruitment events, etc. Decision to hire : Responsible Manager + HR staff No consideration of origin, nationality, religion, race, gender or age.

BPCL Nestle

2 week class room training 2 months field training

On-the-job training Classroom training e-learning Job rotation Performance management International assignments Coaching Project assignments

Work life balance

BPCL Family Wellbeing Grooming Children as Care Takers of Next Generations Parenting Nestle Reconciles economical imperatives Flexible working hours

Employee Development and Growth

BPCL Set up : Development Center Annually 3 workshops IDEAS

International Training Centre RiveReine E-learning programs

Remuneration is more in form of perks than in monetary form Taking care of employees intellectual and growth needs and the promotion of a cohesive work culture Quarterly career development reviews are conducted for all employees apart from the annual performance appraisal Every employee has the freedom to complain regarding various issues like home, promotion policies, subordinates, boss etc to the higher authorities.

Remuneration includes equal levels of monetary and perks form It is determined by the capacity of the Company to improve its productivity. Wage and salary structures are kept simple to avoid unnecessary complexity Structure facilitates the implementation of flat organizational structures and be flexible to adapt to evolution of market. Manager is responsible to communicate clearly and with sufficient transparency, the individual remuneration of staff

Appraisal System
BPCL Performance appraisal systems are in place in the company. 360 degree mechanism approach is adopted by the company. Evaluation on the basis of measurement of the outputs given by him In case of a problem the manager along with his sub-ordinate can trace root cause of the problem in order to eliminate it. Feedback system fast track promotion policy wherein the min. no of years of experience brought down from 5 to 3 years. Nestle Formal assessment takes place on a regular basis. Its purpose is to provide feedback on past performance and future potential Each employee is in charge of his own professional development. Encourages its employees to express their objectives and expectations in an open dialogue. The objective is to retain and motivate employees by offering attractive but realistic career moves allowing them to develop over a long-term period within the framework of economic reality

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

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

Dealing with people

BPCL Vision Make people the source of our improvement are reflected in the policies relating to employees Discrimination between employees on any basis is not tolerated Have special reservations and concessions for employing persons with disabilities (SC), (ST) and (OBC) in the organization Nestle All respect a series of principles concerning employees rights, the protection of children against child labour and other important issues. Any form of harassment, moral or sexual, is not only prohibited but actively tracked and eliminated Internal rules and regulations explicitly deal with discrimination and harassment issues so as to obtain the best possible prevention.

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

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

Our Analysis
PSU- salaries are less, perks are more

Ministry interference at BPCL and Nestle worldwide interference at Nestle India

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

Attrition rate at BPCL is lower due to various factors.

Comparing BPCL and Nestle India we see that BPCL is a much larger company with higher revenues. Many a times PSUs like BPCL have to undergo losses due to the subsidized price set by the govt. such a situation is observed in the case of LPG and petrol sales. Social status as PSU company head is more than private company PSU safety and security of job