HR PRACTICES

AND
STATUTES
 PRE PROJECT ACTIVITIES
 HUMAN RESOURCE PLANNING
 RECRUITMENT
 TRAINING & DEVELOPMENT
 WAGE AND SALARY ADMINISTRATION
 IMPORTANT LIAISON AREAS
 PF,ESI,GRATUITY, BONOUS, PT,IT & PAYROLL
PROCESS
 Identification of Product/Project
 Determination of Product/Pattern and Plant capacity
 Site selection
 Fencing boundary walls
 Preliminary capital cost estimation
 Financing arrangements
 Over all implementation of project schedule
 Technology package finalization
 Approach road
 Transport arrangements
 Railway siding
 investigation of Ground Water
Preliminary Soil investigation
Agreement for Water & Power
Site Office
Construction equipment
Cement storage
Local workshop facilities
Rates for labor and material
Local Duties and Taxes
Staff and Labor housing
Guest house
Hospital/Medical facilities
School
Market
Bank
Post Office
Drainage plan
Facilities for effluent disposals and drainage facilities
Registration of Vendors and Contractors
Finalization of source of procurement
Manpower, fabrication and construction strategies
Recruitment of key personnel
Example: Civil , mechanical, electrical engineers…,etc
Permits, Licenses and Approvals:-
No Objection Certificate(NOC) from
Grampanchaethi
 Andhrapradesh Industrial Infrastructure Corporation(APIIC)
Clearance from Andhrapradesh Pollution Control
Board(APPCB)
Red Category: Dangers process eg: Cement, Chemicals, Steel
etc..,
Semi Category: Not that much harmful eg: Textiles, Paper mills
etc...,
Green Category: Free from pollution eg: Armaments, Handlooms
etc..,
Sales Tax Registration
Registration and license for labor
What is Human Resource Planning:-
“A process by which an organization moves from its current
manpower position to its desired manpower position.”

Why or Need for HRP?:-

To assess the “shortage” or “surplus “of “Human Resources”
To maintain congenial(Healthy ,good) Industrial Relations by
maintaining optimum level of human resources
To “Recruit” and “retain” the human resources of required
quantity and quality
To foresee the requirement of manpower due to firm
“expansion” and “diversification”
Changes in Technology
Changes in Organization design and structure
Pressure from trade unions, politicians, sons of soils
Analyzing “Organizational Plans”
To estimate the net human(optimum) resource requirements
It provides scope for advancement and development of
employees through “Training and Development”
 Document 1:
 Example:-
 Document for the Operator position
 Qualification:-ITI/DIPLOMA/B.TECH
 Experience:- 2-3years
 Exposure:- Should have sufficient knowledge to operate the
machine
 Age:-22-25
 Other Skills:- Communication, Grasping, Ability to
reasoning
 Salary Fitment:- Present Salary drawn, Expected salary
Document 2:-

Prepare Job Wise:-

Job/Position wise for all
levels

TOP MANAGEMENT

GENERAL MANAGER

MANAGERS

OFFICERS

SUPERVISORS

OPERATORS

GROUND LEVEL EMPLOYEES

Document 3(Grouping)
Prepare Level wise:-

Level Number

Ground Level Employees 50

Operators 25
Supervisors 15
Officers 10
Managers 07
General Managers 03
Top Management 05

Total 115
 What Is Recruitment?:-
 Recruitment is the process of “finding”, and
“developing” the sources of “prospective employees”
and “attracting” them to “apply for the job”

 What is Selection?:-
 The Selection is the process of “finding out” the most
“suitable candidates” to the “job” out of the candidates
attracted
 Recruitment and Selection Process

2 3
Candidates Prescreening
Generation

1 4
Analysis Preliminary
on Interview
Positions
5
Behavioral
Employment Based
Interview(HR)

9 6
Final Group
Interview 8 7 Discussion
Medical Practical
Test Test (Job)
Internal External
1.Present, permanent 1. Campus selection
Employees 2.Data Bank
2.Retired employees 3.Other organization
3.Promotions 4.Professional Associations
4.Transfers 5.Employment exchange
6.Advertisment
 DOCUMENTS IN THE
EMPLOYEE FILE

CV Presented by the employee

Passport size photos

Copies of educational and

experience certificate
Test reports

Interview evaluation form

Salary Proof
Reliving letter from Present
employee
Offer of Appointment
 What is Training?:-
 Training is the act of tuning(increasing) the
competencies(Knowledge, Skills, Abilities) of an employee
for doing a particular job.
 Training is the systematic process
Benefits:-
 It leads to more positive attitude towards the profit
orientation
 Improves the job skills, and knowledge at all levels of the
organization
 Improves the “Morale”(Confidence) of the workforce
It helps employees to understand the organizational goals
Improves the relationship between the superiors and
subordinates
Helps employees adjust to change

Importance of Training:-
No organization can get a candidate who exactly matches with
the job and organizational requirement.
Organizational requirements are changed from time to time
in view of technological advancements, organizational
efficiency, productivity, progress and development depends
upon the training
Organization gets more effective decision-making and
problem solving
Helps to keep costs down in many areas e.g., production,
personnel administration
Training assessment methods:-
Observations
Interview
Group Conference
Questionnaire survey
Check list method
Performance Appraisal

Areas of Training:-
Specific Skills(Which directly match to their actual work)
Management requirements (quality, quantity, time standards)
Problem solving(giving some mock drills about the frequent
problems)
Apprentice Training(Training in the particular area)
Departmental requirements/weaknesses
Identifying specific frequent problem areas (Scrap, wastage,
accidents)
Steps to prepare a general Policy:-
Legal or Statutory verification
Competitors policies
Surrounding company policies
Firms ability/management ability
to pay
Employee need/requirement

General Types of Policies:-

Wage Policy
Safety Policy
Leave Policy
Welfare Policy
What is Wage?
The “Remuneration “paid by the employer to the services
of the employee on “Hourly”, “Daily” ,” Weekly”, “Fortnightly”

What is Salary?
The “Remuneration paid to the “Clerical” and “Managerial”
personnel, employed on “monthly” or “Annual” basis
 Wage and Salary plans should be sufficiently flexible
 Job evaluation must be done scientifically
 To acquire qualified “competent” personnel
 To retain the present employees
 To pay according to the "content” and “difficulty” of
the job
 To maintain systematic payroll administration
 To meet the all statutory obligations of the
government
Rewards:-
Generally there are two types of Rewards
Financial Rewards
Non Financial Rewards

Financial Rewards:-
These are again two types
Performance Based
Membership Based

Performance Based:-
Piece work
Incentive pay
Performance bonus
Merit pay plan
Membership Based:-
Basic Pay
DA
HRA
Pay for time not worked

Non Financial Rewards:-

Preferred office furnishing (infrastructure)
Flexible work schedules
Preferred leave(need based leaves)
Own secretary(appoint one personal secretary to the top level
management)
Impressive job title
Conveyance Facilities(Transport facilities)
Medical Care
Types of Fringe Benefits:-
1. Monitory Benefits;2. Non Monitory Benefits
Monitory Benefits:-
Payment for time not Worked:-
Hours of Work
Paid Holidays

Welfare Recreation Facilities:-

Canteen
Housing
Transportations
Parties and Picnics

Old Age and Retirement Benefits:-

Provident Fund(PF)
Pension
Gratuity
Non Monitory Benefits:-
Treats:-
Free lunch
Coffee break
 Dinner with Boss
Picnics
Knick-Knacks:-
Desk Accessories
Company Watches
 Ties, Tie- Pins
 Calendars
Wallets
Recreation:-
Lunch place
Gym
Games
Vacation Trips-Coupons
PAYABLE DAYS:-
WEEKLY OFF
PAID HOLIDAYS
CASUAL LEAVES
SICK LEAVES
EARNED LEAVES
NOTE: IN THESE CONDITIONS SALARY WILL BE
PAID TO THE ALL EMPLOYEES.
NON-PAYABLE DAYS:-
 MEDICAL OR MATERNITY
 ESI LEAVES
 LOSS OF PAY
 ABSENT
NOTE: IN THESE CONDITIONS SALARY WILL NOT BE
PAID TO THE EMPLOYEE.
TOTAL DAYS IN CALENDAR YEAR “365”
 52(W/O)
 10(FESTIVAL (6)& NATIONAL HOLIDAYS(4))
 365-52-10=303
 “303” IS THE PHYSICAL WORKING DAYS.
TOTAL LEAVES:-
 WEEKLY OFFS PER YEAR =52 DAYS
 FESTIVAL(6) & NATIONAL HOLIDAYS(4) = 10DAYS
 CASUAL LEAVES =12 DAYS
 SICK LEAVES = 12 DAYS
 EARNED LEAVES = 15 DAYS
 FOR EVERY “20” PHYSICAL WORKING DAYS ONE
“EARNED LEAVE(EL)” WILL BE GIVEN TO THE
EMPLOYEE
ELIGIBILITY TO CLAIM EL:-
“240” WORKING DAYS IN A CALENDAR YEAR
FIXED SALARY:-
BASIC + DA + HRA + CONVEYANCE ALLOWANCE +
SPECIAL ALLOWANCE(THESE WILL CALCULATED FOR
THE 31 DAYS)
EARNED SALARY:-
 BASIC + DA + HRA + COVEYANCE ALLOWANCE +
SPECIAL ALLOWANCE(THESE WILL CALCULATED FOR
THE ACTUAL WORKING DAYS)
 DEDUCTIONS:-
 PF, ESI, PT, IT, SALARY ADVACES OR OTHERS
 NET SALARY:-
 EARNED SALARY– DEDUCTIONS = NET SALARY
EXAMPLE:-
IF FIXED GROSS IS 10,000/-
THEN BASIC SHOULD BE 50% (5000/-) OF FIXED GROSS
DA, HRA, CONVEYANCE & SPECIAL ALLOWANCE WILL BE
DEPENDING ON “EARNED BASIC”.

EXAMPLE:-
IF EARNED BASIC IS 50% OF EARNED GROSS(5000/-)
THEN DA,HRA, CONVEYANCE ALLOWANCE, SPECIAL
ALLOWANCE WILL BE CALCULATED ON EARNED BASIC
DA=10%
HRA =40%,
COVEYANCE ALLOWANCE =25%
SPECIAL ALLOWANCE =25%
EARNED BASIC WILL BE CALCULATED AS FOLLOWING:
IF NO OF WORKING DAYS =31.
ATTENDED WORKING DAYS =25.
THEN CALCULATION WILL BE LIKE THIS:
FIXED BASIC ÷ FIXED WORKING DAYS × ATTENDED
WORKING DAYS

EXAMPLE:-
5000÷31×25=?
BASING ON THE EARNED GROSS, THE REMAINING
COMPONENTS DA, HRA, CONVEYANCE, SPECIAL
ALLOWANCES WILL BE CALCULATED
EMPLOYEE PROVIDENT FUND(EPF), ACT:-
APPLICABILITY:-
THE INDUSTRY / ESTABLISHMENT ,IS APPLICABLE TO
ENFORCE/INTRODUCE PF TO THEIR EMPLOYEES ONCE
20 OR MORE EMPLOYEES “ON ROLLS”.
EMPLOYEE ELIGIBILITY:-
THOSE WHO ARE DRAWING BASIC+DA UP TO RS 6500/-.
TOTAL PF CONTRIBUTION:-
EMPLOYEE = 12%
EMPLOYER =13.61%
TOTAL = 25.61%
THE DEDUCTIONS WILL BE MADE ON EMPLOYEE
“EARNED BASIC+DA”
CALCULATIONS WILL BE MADE AS FOLLOWING:-
12% (EMPLOYEE) + 3.67% (EMPLOYER) CONTRIBUTIONS
WILL GOES TO PROVIDENT FUND (EPF)
TOTAL EPF CONTRIBUTION = 15.67%
REMAINING 8.33% (EMPLOYER) WILL GOES TO EMPLOYEE
PENSION.
PF CONTRIBUTION PERIOD(ANNUAL RETURNS PERIOD):-
“MARCH – FEBRUARY“
MONTHLY RETURNS HAVE TO SUBMIT TO THE PF OFFICE
ON OR BEFORE 15TH DAY OF COMING MONTH.
EXAMPLE: MARCH RETURNS SHOULD SUBMIT ON OR
BEFORE OF APRIL 15TH.
WITH THE EFFECT OF APRIL 2012 EPF RETURNS SUBMIT
THROUGH ONLINE ONLY.
ESI, ACT:-

ELIGIBILITY:-
THE ESTABLISHMENT / INDUSTRY IS ELIGIBLE WHEN “10
EMPLOYEE ARE ON ROLL”.
EMPLOYEE ELIGIBILITY:-
THOSE WHO ARE DRAWING “FIXED GROSS” UP TO RS 15,000
DEDUCTIONS WILL BE MADE ON “EARNED GROSS”

CONTRIBUTIONS:-
EMPLOYEE CONTRIBUTION =1.75%
EMPLOYER CONTRIBUTION =4.75%
TOTAL =6.50%
CONTRIBUTION PERIOD:-

CONTRIBUTIONS WILL PAY FOR EVERY 6 MONTHS

1ST APRIL - 30TH SEPTEMBER
1ST OCTOBER – 31ST MARCH

ESI BENEFITS:-
SICKNESS BENEFIT
MEDICAL BENEFIT
DISABLEMENT BENEFIT
TEMPORORY & PERMANENT DISABLEMENT
MATERNITY BENEFIT
FUNERAL BENEFIT
PROFESSIONAL TAX:-

UP TO 6000 - NIL
6001 – 10000 – RS 80/-
10001 – 15000 – RS 100/-
15001 – 20000 – RS 150/-
20001 OR ABOVE – RS 200/-

DEDUCTIONS WILL BE MADE ON “EARNED GROSS”

WELFARE FUND:-
TWO RUPEES WILL DEDUCTED FROM THE EACH
WORKMEN FOR THE MONTH OF DECEMBER OF EVERY
YEAR.
INCOME TAX:-
SALARY:-
WAGES, PROVIDENT FUND, ANY PENSION, ANY GRATUITY, ,
PROFITS IN LIEU OF OR IN ADDITION TO ANY SALARY OR WAGES.

MEN OR WOMEN:-
UP TO 2 LAKHS – NIL
2 – 5 LAKHS – 10%
5 – 10 LAKHS – 20%
10 LAKHS ABOVE 30%

SR. CITIZEN:-
UP TO 2.5 LAKHS – NIL
2.5 – 5 LAKHS – 10%
5 – 10 LAKHS – 20%
10 LAKHS ABOVE 30%

SUPER SENIOR CITIZEN:-

UP TO 5 LAKHS – NIL
5 – 10 LAKHS – 20%
10 LAKHS ABOVE 30%
DEDUCTIONS WILL MADE EARNED GROSS.
GRATUITY:-

MAXIMUM LIMIT IS “10” LAKHS

ELIGIBILITY:-
CONTINUOUS SERVICE OF “5” YEARS.
GRATUITY CALCULATION:-

LAST DRAWN BASIC + ALL DA’S ÷ 26 × 15 × NO OF

WORKING YEARS
EXAMPLE:- 5000÷26×15×15YEARS
BONUS ACT:-

MINIMUM BONUS IS “8.33%” OF ANNUAL BASIC SALARY

MAXIMUM IS 20% OF ANNUAL BASIC SALARY

ELIGIBILITY:-

AN EMPLOYEE WHO IS DRAWING UP TO RS “10000/-”

SALARY OR WAGES PER MONTH.
MATERNITY BENEFIT ACT:-
APPLICABILITY:-
TO EVERY ESTABLISHMENT WHERE TEN OR MORE WOMEN WORKERS
ARE WORKED OR WERE WORKED

LEAVES AVAIL:-
“6” WEEKS BEFORE & “6” WEEKS AFTER OF PREGNANCY.
TOTAL “12”WEEKS.

ELIGIBILITY:-
ANY WOMAN WHO HAS WORKED FOR MORE THAN “80” DAYS
DURING THE PRECEDING 12 MONTHS OF THE DATE OF DELIVERY.

MEDICAL BONUS:-
“ 1000/-” CAN BE PAID BY THE EMPLOYER TO THE WOMAN
EMPLOYEE DURING THE PREGNANCY PERIOD TO MEET THE MEDICAL
REQUIREMENT.

TUBECTOMY OPERATION:-
“2” WEEKS OF LEAVE WILL BE PROVIDED TO THE WOMAN EMPLOYEE
IMMEDIATELY FOLLOWING FROM THE DATE OF HER OPERATION.
THANK YOU