Your SlideShare is downloading. ×
  • Like
  • Save
HR policies in HCL by monika ndim
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.


Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

HR policies in HCL by monika ndim


{ To Study the structure and function of HR policy in HCL/ICC, …

{ To Study the structure and function of HR policy in HCL/ICC,
{ To compare the HR policy of HCL/ICC with other companies of similar profile
{ To find out the key techniques that makes The HR Policy effective and valuable in HCL/ICC and in other organizations.

Published in Business , Education
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • @rinkutiwari88 Will locate the file and shoot u the mail.
    Are you sure you want to
    Your message goes here
  • if u could plz send me a copy of your project . i really need it.
    Are you sure you want to
    Your message goes here
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. HR POLICIES IN Hindustan Copper Limited/Indian Copper ComplexA Summer Internship report Presented to the Faculty of the MBA Program New Delhi Institute of Management In (Partial) Fulfilment of the Requirements for the Degree Post Graduate Diploma in Management (2010-2012) By Maharani Monika Kumari Roll No: 14150 (B & ) , 60, Tughlakabad Institutional Area , New Delhi-110062, e-mail website : pg. 1
  • 2. Summer Internship Report HR POLICIES AT HINDUSTAN COPPER LIMITED (A Government of India Enterprise) at Indian Copper Complex (ICC) at Ghatsila, Jharkhand SUBMITTED BY Monika Kumari (Roll no.-141) New Delhi Institute of Management PGDM (2010-2012) INTERNAL MENTOR INDUSTRY MENTOR Mr. B.K.Dhup Mr. M.R.Barik(HR Faculty,NDIM) (Sr.Manager HR,HCL/ICC) REGISTERED OFFICE PLANT ADDRESS ‗Tamra Bhavan‘ Indian Copper Complex 1 Ashutosh Chowdhury Avenue P.O. Ghatsila Kolkata-700 019, India Dist. – Singhbhum(E) Tel No. 91 33 22832224, 91 33 22832226 Jharkhand Fax No. : 91 33 22832478, 91 33 22832640 Phone – (06585) 225-768/492/873/869 400 Website : Fax – (06585) 225-806 pg. 2
  • 3. DECLARATION I , Monika Kumari, a student of New Delhi of Institute ofManagement (2010-2011) declare that every of the Project Report of(HR Policies in Hindustan Copper Ltd./ Indian Copper Complex) that Ihave submitted is original. I was in regular touch with the nominated guide and contactedhimfor discussing the project. Date of project submission: _______________________ Signature of the student: _________________________ Faculty Comments: _____________________________ Signature of faculty guide:_________________________ pg. 3
  • 4. ACKNOWLEDGEMENT I am deeply indebted to Mr.M.R.Barik ,Manager (HR-Executive cell) and Mr. B.K.Dhup (Internal Mentor) for the precious time he devoted to the project and also the trusthe showed in me. This project report would not have been prepared so well without hishelp and support and also the providing me with the relevant material and information. Iam specially thankful to Mr. R.Prasad (HR-Works ) for his Guidance and continuoussupport. I am indebted to Mr.Y.V.Chndrashekhar (HR-Admin) for giving his invaluable timeand learning about the subject in making my project and grateful to Mr.A.S.Verma (Sr.Executive HR) and Mr.H.Singh (HR-Works) for their kind co-operation and sharing theirextensive knowledge and experience. Thanks to the staff members of Personnel Department for their time and supportwhich helped me to study such an extensive subject. I am also thankful to my fellowsummer trainees who helped me throughout the project and their suggestion becomes ofmy great importance. I am really thankful to my family and specially my mother-in-law who encouragedme and acted as pillars of strength. Without whose blessings this project could not havebeen completed in time. Place: Signature: Dated: pg. 4
  • 5. CONTENTS Study Declaration……………………………………………………………………..i Certificate of Originality………………………………………………………………ii Acknowledgement……………………………………………………………………iii Student Profile………………………………………………………………………..iv 1. INTRODUCTION ……………………………………………… 13 A. Objective of the study B. Scope C. Methodology 1. Company Profile …………………………………………………..………..18 I. An Introduction to HCL II. Plant locations III. Growth since inception IV. Productivity n Profitability V. The Management VI. Organizational StructureVII. Employee engagementVIII. Trade Union IX. Strategy X. Research and Development/technology absorption XI. Quality AssuranceXII. Mile stone achieved pg. 5
  • 6. XIII. Financial AnalysisXIV. Annual ReportXV. Peer CompaniesXVI. Social Responsibility (HCl/ICC) 1.1. ICC Ghatshila ,Jharkhand ……………….……………………….…..48 1.2. The Product-Copper…………………………………………….……..50 I. Strategic Role of Copper II. Copper Consumption III. Stages of Copper Production IV. Saleable Products V. Copper by-Product recovery VI. Global Copper marketVII. Indian Copper Market 2. HR POLICIES IN HCL/ICC…………………………………..63 2.1. Introduction……………………………………………………………....64 2.2. Recruitment and Selection policy……………………………………65 2.3. Recruitment And Establishment I. Notification II. Employment Category III. Source of Recruitment a. External And Internal b. Advertisement c. Management Institute Recommendation d. Deputation personnel pg. 6
  • 7. 2.4. Selection Procedure……………………………………………………67 I. Job Analysis II. Initial Screening III. TestIV. Interview V. Medical FitnessVI. Offer LetterVII. Verification 2.5. Probation Policy………………………………………………………..69 2.6. Training and development policy…………………….……………..70 I. Induction II. Conduct needs Assessment a. Organizational analyses b. Task analysis c. Person analysis III. Training Methods Implemented a. Lecture b. SimulationsIV. Training Evaluation 2.7. Health and Safety policy………………………………………….…..73 I. Internet use policy II. Smoking policy III. Visitor policyIV. Corporate security policy V. Alcohol and drug policy 2.8. Working time Policy……………………………………….…………78 pg. 7
  • 8. I. Shift Timing Weekly hours II. Daily hours III. Intervals for rest IV. Spread over V. Prohibition of overlapping shifts VI. Register of workersVII. Notice of periods of workVIII. Night shifts 2.9. Conduct and Disciplines policy………………………………………..80 I. Conduct II. Codes of conducts III. Misconduct IV. Disciplinary procedure V. Disciplinary authority 2.10. Compensation and Benefits policy ………………………..….90 I. Allowance II. Holidays And Leaves III. Leave Encashment IV. Expense Policy V. Concessions 2.11. Promotions and Incentives policy……………………………106 I. Incentive Schemes II. Performance Appraisal System III. Promotion Policy IV. Annual Assessment pg. 8
  • 9. V. SLASVI. Inter-Unit award schemeVII. Other Benefits 2.12. Payment and Deductions policy………………………….118 I. Pay scale II. Social Security Schemes III. Retirement Policy …………………………………………………………119 a. Provident fund b. Gratuity c. Half-pay leave d. Voluntary retirement benefitsIV. Death benefits 2.13. Employee Relation Policy ………………………………….125 I. Communication policy II. Conflicts of interest policy III. Conflict resolutionIV. Grievance Redressal 3. SWOT ANALYSIS …………………………………………….44 4. COMPARISON AND ANALYSIS OF POLICIES FOLLOWED BY HCL/ICC ………………………………………………………..135 5. SUGGESTION AND CONCLUSION ………………………..137 6. MY EXPERIENCE AND LEARNING………………………...139 7. EMPLOYEE SATISFACTION QUESTIONNAIRE AND RESULT……. Annexture (142) pg. 9
  • 10. STUDENT‘S PROFILE NAME : MONIKA KUMARI ROLL NO. : 141 NAME OF THE INSTITUTION : New Delhi Institute of Management STREAM : Human Resource managementNAME OF THE ORGANIZATION : Hindustan Copper Ltd./ Indian Copper ComplexPROJECT TITLE : HR Policy in HCL/Indian Copper ComplexTRAINING DURATION : 60 Days (2nd of May to 30th of June)EXTERNAL GUIDE : Mr.M.R.Barik(Sr. manager HR,HCL/ICC)INTERNAL GUIDE :Mr.B.K.Bhup (HR Faculty ,NDIM) pg. 10
  • 11. “A creative man is motivated by the desire toachieve, not by the desire to beat others. “ “Whatever their future, at the dawn of their lives,men seeks a noble vision of man’s nature and of life’spotential.” - Ayn Rand pg. 11
  • 12. SUMMER INTERNSHIP INTRODUCTIONA. Objective of The StudyB. ScopeC. Methodology pg. 12
  • 13. INTRODUCTION Summer Internship forms a part of the curriculum of the PGDM,At NDIM , New Delhi . It gives us an insight into the working of realcorporate world. It equips us with the practical knowledge of theworking of the organization and various aspects of the organizationduring short time like culture followed by functional aspect. The main objective of the summer internship is to experience thevarious concepts that have been learnt during the first year ofmanagement course as learning the concepts is very different fromexperiencing them at a concrete level. We also learn that in a givenparticular situation all the functional aspects are interrelated. Onefunctional aspects cannot be isolated from the organization. Here welearn to be more confident by judging the various situation base on ourreasoning and by the application of our knowledge in these situationsand while doing summer internship, it is expected that we should nothesitate in doing some basic clerical job so that we get in touch withthe organizational realities. pg. 13
  • 14. OBJECTIVE OF THE STUDY The objective of the summer internship is: I. To learn about an industry and to build a relationship with a prospective employer as well as gives us a chance to simply hone our skills.II. To equips us with experience and learning about how we can apply our classroom knowledge in reality. As learning the concept is very different from experiencing them at a concrete level.III. To know about the various situations by establishing relationship between real and significant factors in a situation.IV. In addition to learning valuable new skills and getting the practical experience that employers want to see on our resume, you are also given an opportunity to explore our field of interest before ―officially entering‖ it. pg. 14
  • 15. SUB-OBJECTIVE: I. To Study the structure and function of HR policy in HCL/ICC,Ghatshila.II. To compare the HR policy of HCL/ICC with other companies of similar profile.III. To find out the key techniques that makes The HR Policy effective and valuable in HCL/ICC and in other organizations. pg. 15
  • 16. SCOPEThe Scope of the study is: I. It can be extremely beneficial to students pursuing PGDM looking for hands-on expertise.II. It is a great way to jump starts a career, especially for career switchers.III. It is often referred to as the ―weeks of interview‖ and has the potential of leading to a full time job in the future.IV. As an intern, we can develop knowledge, competencies, and experience related directly to our career goal. pg. 16
  • 17. METHODOLOGY The methodology of the study has been summarized in to the following two steps:a) Selection of the Topic: The topic HR Policy was chosen after considering its wide scope importance in the organization and cyber era.b) Research Design It includesA. Collection of Data from various.1. Primary Data-data collected through questionnaire was mailed to few companies to know their HR Policy.2. Secondary source of data-official records, registers, websites of HCL/ICC.3. HCL journals & Magazines.4. The data of existing HR policiesB. Data Analysis Analysis of the Data‘s made through the response of different department of HCL/ICC(Ghatshila). pg. 17
  • 18. COMPANY PROFILE An Introduction to HCL―Our Core is Ore” pg. 18
  • 19. An Introduction to HCL Hindustan Copper Limited (HCL), a public sectorundertaking under the administrative control of the Ministry of Mines,was incorporated on 9th November 1967. It has the distinction of beingthe nation‘s only vertically integrated copper producing company as itmanufactures copper right from the stage of mining to beneficiation,smelting, refining and casting of refined copper metal into downstreamsaleable products. It‘s a Low cost, Efficient and EnvironmentallyFriendly Mining Company. Hindustan Copper Ltd is the only company whichhas rights to mine copper ore. The company converts copper ore tocathodes, which is further upgraded to bars and rods. This is the only operating copper ore producingmining company in India. This is also the only vertically integratedproducer of primary refined copper in India (Source: Annual Report(2009-10), Ministry of Mines (MoM), Government of India (GoI). Itsprincipal activities include mining of copper ore, concentration ofcopper ore into copper concentrate through a beneficiation processand also smelting, refining and extruding of the copper concentrateinto refined copper in downstream saleable products. pg. 19
  • 20. Other than selling refined copper productsprincipally in the form of continuous cast wire rods, wire bars andcopper cathodes, company also sell surplus copper concentrate. The Company markets copper cathodes,copper wire bar, continuous cast copper rod and by-products, such asanode slime (containing gold, silver, etc.), copper sulphate andsulphuric acid. More than 90% of the sales revenue is from cathodeand continuous cast copper rods. In concluded financial year 2006-07,as per provisional estimates, the Company has earned a all-timehighest net profit of Rs. 331 crore (~USD 75 million ) against a salesturnover of Rs. 1800 crore (~ USD 420 million). pg. 20
  • 21. VISION AND MISSION Vision ―Vision of the company is to maximize shareholder value through sustainable mining and value added products.‖ Mission I. More than three times increase in ore production in a decade.II. Continuous improvement in productivity and energy efficiency to bring it at par with the best internationally.III. Acquiring and developing new resources of copper domestically and internationally.IV. To rigidly follow framework for sustainable development of mine and ensure corporate social responsibility.V. To be one of the most profitable Nav Ratna* Companies. *NOTE:- There are total 5 Maharatna,19 Nav Ratna companies , and 63 Mini Ratna companies. pg. 21
  • 22. PLANT LOCACTIONS HCL‘s mines and plants are spread across four operating Units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand and Maharashtra as named below: I. Khetri Copper Complex (KCC) at Khetrinagar, RajasthanII. Indian Copper Complex (ICC) at Ghatsila, JharkhandIII. Malanjkhand Copper Project (MCP) at Malanjkhand, Madhya PradeshIV. Taloja Copper Project (TCP) at Taloja, Maharashtra The largest resources of copper ore are located in the state of Rajasthan with 668.5 million tonnes (47.9%) followed by Madhya Pradesh with 404.3 million tonnes (29%) and Jharkhand with 226 million tonnes (16.2%).Copper resources in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Meghalaya, Orissa, Sikkim,Tamil Nadu, Uttarakhand and West Bengal accounted for about 7% of the total of all Indian estimated resources. pg. 22
  • 23. GROWTH SINCE INCEPTIONA look at the change in the company since inception: November Incorporated to take over from National 1967 Mineral Development Corporation Ltd. March M/S Indian Copper Corporation Limited, 1972 Private Sector Company, located at Ghatsila, Jharkhand with Smelter and Refinery was Nationalized and made part of HCL February Fully integrated Copper complex from 1975 mining to refining came on stream at Khetri ( capacity 31,000 tonnes of refined copper) November The largest hard rock open pit mine in the 1982 country came into stream at Malanjkhand in Madhya Pradesh of capacity 2 million tonnes ore. December Continuous Cast Wire Rod plant of South 1989 Wire Technology of capacity 60,000 MT was commissioned at Taloja in Maharashtra. 1992 Modernization of concentrator plant at KCC : Installation of larger capacity flotation cells and online stream analyzer has been completed. 1997 Hindustan Copper Ltd. and the Ministry of pg. 23
  • 24. Mines have signed a memorandum of understanding (MoU) for 1997-98. 1998 Expansion of Khetri Smelter and Refinery : Company is proposing expansion of Khetri Smelter and Refinery capacity from present 31000 to 100000 TPA partly based on imported concentrate. Government approval has already been received for stage-I clearance. Industry Structure and development Till 1997, State owned Hindustan Copper Limited(HCL) was the only Company producing primary refined copper in thecountry meeting about 25-30% of the countries refined copperrequirement, the balance being imported. Presently, four major playerswith total installed production capacity of around ten lakh tonnes ofrefined copper dominate the Indian copper industry. However, HCLwith production capacity of 49,500 tonnes per annum continues to bethe only vertically integrated primary copper producer having its owncaptive mines. The captive mines used to meet about 60% ofCompanies requirement for concentrate, the rest being imported. Thetwo private sector companies, viz. M/s.Hindalco Industries Ltd. (Unit:Birla Copper) and M/s.Sterlite Industries (I) Ltd., with productioncapacities of 5,00,000 tonnes and 4,00,000 tonnes per annum pg. 24
  • 25. respectively, have set up shore-based smelters relying on importedconcentrate. The fourth player, M/sJhagadia Copper Ltd. With plantcapacity of 50,000 tonnes per annum produces refined copper throughthe secondary route (using copper scrap). While the privateCompanies have the benefits of high scale of operation along withlocation advantage ,HCL has a competitive advantage by virtue ofownership of mines .There has been a paradigm shift in the Indiancopper industry where India has now become a net exporter of copperfrom the earlier position. Industrial Relations Industrial Relations in the Company remainedpeaceful and harmonious. Various bi-partite foray with representativesof the Management and the Unions at the Apex, Unit and Shop floorlevels functioned well. An MoU was reached with the recognized TradeUnions after protracted discussions on Workmen‘s Wage Revisioneffective from 01/11/2007 which has since been implemented. TheCompany also implemented Executive Pay Revision with effect from01/01/2007 as per Government guidelines. Product and Profitability HCL is the only operating copper ore producingmining company in India. This is also the only vertically integratedproducer of primary refined copper in India (Source: Annual Report(2009-10), Ministry of Mines(―MoM), Government of India (―GoI).India has a large imbalance between its copper smelting/refining pg. 25
  • 26. capacity and its copper ore mining capacity. The refined copperproduction capacity in India for fiscal 2010 was more than 1 milliontonnes of copper, requiring approximately 100 million tonnes of copperore (assuming a copper content of 1%). The copper ore production inIndia for fiscal 2010 was approximately 3.21 million tonnes. As HCLthe only operating copper ore producing mining company in India andhave access to over two-thirds of India‗s copper ore reserves, thispresents an attractive growth opportunity for us. Principal activities include mining of copperore, concentration of copper ore into copper concentrate through abeneficiation process and also smelting, refining and extruding of thecopper concentrate into refined copper in downstream saleableproducts. Other than selling refined copper products principally in theform of continuous cast wire rods, wire bars and copper cathodes, wealso sell surplus copper concentrate. In addition ,It sell by-productsgenerated through the copper manufacturing process including anodeslime containing gold and silver and sulphuric acid. The majority of HCL‘s sales of refined copperproducts and copper concentrate are made to customers in thedomestic market in India. For fiscal 2010, we generated approximately75% of its revenue from sales of refined copper in the domestic marketand 22% of its revenue from sales of copper concentrate in thedomestic market. Refined copper products prices in India arebenchmarked to the LME copper price. pg. 26
  • 27. Set forth below is a chart of our Company‗skey production and sales volumes for each of the last three fiscalyears and the three month period ended June 30, 2010. For fiscal 2010, and the three month periodended June 30, 2010, sales of refined copper products accounted forapproximately 75% and 58% of our revenue, respectively, whereassale of copper concentrate accounted for approximately 22% and 33%of our revenue, respectively. For fiscal 2010, and the three monthperiod ended June 30, 2010, we had consolidated total revenues ofRs.13,807.0 million and Rs.2,469.1 million, profit before tax ofRs.2,158.4 million and Rs.439.5 million and profit after tax ofRs.1,546.8 million and Rs.262.0 million, respectively. During the year 2009-10, the Companyearned foreign exchange of Rs 36.10 crore through exports of anodeslime, as against Rs 75.22 crore earned in 2008-09. pg. 27
  • 28. Improve production and productivity through participation of employees Quality Circle One of the Quality Circles of the Company,viz., Pragati of ICC was rated Excellent based upon their Case Studypresentation at the National Convention of Quality Circles-2009 atBengaluru (18-21 December, 2009). There is sustained focus onfurthering the Quality Circle movement in the Company to improveproduction and productivity through participation of employees. pg. 28
  • 29. The Management Subject to the provisions of theCompanies Act, 1956 & the directives/Instructions issued by theGovernment from time to time and the provisions contained in theMemorandum & Articles of Association of the Company, thebusiness of the Company is being managed by the Board ofDirectors of the Company, who issues guide lines & formulatepolicies for smooth functioning of the business. All the powers arevested with and exercised by the Board excepting those which arespecifically to be exercised by the share holders of the Company inGeneral Body meetings. However, for day-to-day operations, the CM D / Functional Directors are delegated with adequate powers.The functional Directors are, in-turn, supported by professionalexecutives and Chiefs of Operating Units in dischargingresponsibilities of their respective functional Area. Name Designation A K Sarmah Independent Director Anjali Anand Srivastava Part Time Official Director Anupam Anand Director (Personnel) Avijit Ghosh Director C S Singhi Co. Secretary & Compl. Officer C S Singhi Secretary G Srinivas Part Time Official Director K D Diwan Director (Operations) K K Saberwal Director (Finance) R Gossain Independent Director Shakeel Ahmed CEO Shakeel Ahmed Chairman and Managing director pg. 29
  • 30. Employees HCL has an experienced and qualified managementand technical team to operate and implement copper mines andexpansion projects. Company management team includesprofessionals with an average of over 30 years of experience in coppermining and refining. All of permanent employees are unionized. HCLrelations with our employees and unions are generally good, althoughthey have in the past and may in the future experience industrialactions or disputes .Company has entered into wage and benefitsagreements dated January 6, 2010 with recognized unions, further towhich it revised pay scales and the terms of certain benefits, for aperiod of five years with effect from November 1, 2007.Union wageand benefits agreements are due for revision in November 2012. Registered Office is located in Kolkata. As onSeptember 1, 2010, Company had 5,229 permanent employees asfollows: pg. 30
  • 31. Strategy Increase Focus on Copper Mining and Expansion of Our Mining Capacity Continue to Develop Long-Term Growth Prospects through Brownfield and Greenfield Exploration. Increase the Amount of Outsourcing Utilized for Our Mining Operations by utilizing third-party contractors. Continue to be a Low Cost, Efficient and Environmentally Friendly Mining Company. Seek Additional Sources of Income by commercializing waste materials generated by our production processes. Explore Acquisition of Mining Companies and Mines Within and Outside of India pg. 31
  • 32. TECHNOLOGICAL INNOVATIONHindustan Copper Limited has to its credit some major contributionstowards technological improvements in mining, beneficiation,smelting, hydrometallurgy and by-product recovery. Some of theareas where Hindustan Copper Limited has introduced newtechnology areMININGTrackless MiningTrackless mining has helped in rapid development of mines enablinghigher levels of production and productivity comparable tointernational standards.Drop RaisingRaising is one of the most difficult of mining operation, HCL hasdeveloped and perfected the concept of drop raising over 60mintervals. This has resulted in increased-safety and higher progress.A pattern of five 6‖ diameter holes has been standardized for thecrater method of blasting the raises sequentially. pg. 32
  • 33. Large Diameter Blast Hole StopingHCL has developed single sub-level method of stoping using largediameter (162 mm) blast holes over level intervals of 50 to 60 meters.Need to have intermediate sub-level for drilling has been eliminatedin this method. Excellent fragmentation has been achieved. Benefitsof new stoping method compared with the conventional sub-levelstoping methods are:• Reduction in quantum of developments, drilling cost and explosive cos• Overall reduction in the cost of mining• Reduction of manpower and• Reduction in stopes preparation time. The new method of stopping has revolutionized mining technology.Rock BoltingFor mining flat dipping ore bodies, timber support was common inearly days. With the need to mine over a large width. HCL developedvery simple but effective methods of rock bolting using cementgrouted steel rods. This has resulted in the improvement of groundconditions ensuring higher safety standards.Post Pillar StoppingHCL has developed the post-pillar method of mining for adoption inflatly dipping wide ore bodies in ICC group of mines. This miningmethod has enabled the production rates to go up as compared toroom and pillar stopes. Electrically operated LHD s have been pg. 33
  • 34. introduced at ICC for operating in these stopes. The output per manshift has increased and the stoping cost has come downsubstantially. Hydraulic filling of stopes with classified mill tailings hasbeen established as a standard practice at the ICC resulting inregional improvement in ground conditions.SMELTINGOxygen EnrichmentHCL has also taken the lead in introducing oxygen enrichment in theconverters at KCC and ICC resulting in effective control ofaccumulation of secondary products in smelting. HCL has alsointroduced oxygen enrichment in process air in flash furnace toeffectively increase the capacity of the existing smelters for meetingincreased production commitments.Hydro-MetallurgyOccurrences of large quantities of oxidized ore and lean gradesulphide ore at Malajkhand has impelled the company to extractcopper values in the ore by dump leaching otherwise uneconomicalby conventional methods. The dump is sprayed with dilute acidifiedsolutions to dissolve copper minerals. The end product of thisleaching operation is a pregnant liquor of copper sulphate. Theleached liquor is then treated to recover copper metal. pg. 34
  • 35. By-Product Recovery HCL has established well equipped R&D facility at KCC and ICC. The R&D section is fully responsible for improvement in quality of the products, control of quality of raw materials, improvement of recoveries and for maximizing the recovery of by-products, HCL has developed its own Precious Metal Recovery plant which is now operating at ICC successfully. A Tellurium Recovery Plant has also been developed by R&D Wing. Extensively trails are going on for recovering cobalt, nickel and copper powder from converter slag. Attempts are also being made for reducing the losses from slag. Quality Assurance High quality of product and associatedcustomer satisfaction is of supreme importance in HCL‘s operations.All actions are directed to produce a quality which not only satisfies thecustomers but prove to be a ―CUSTOMERS‘ DELIGHT‖. In order toachieve this the Company has accredited itself with ISO 9002certification for all its products viz. Copper Cathode and Copper CCWire rods. Cathodes produced at Khetri Copper Complex, Rajasthanand Indian Copper Complex, Bihar are ISO 9002 accredited .HCL isthe FIRST ISO accredited Company in India in copper productionfield. All the units of HCL have adequatemodern controls, test and analysis facilities to ensure proper quality pg. 35
  • 36. at all stages of operation. The raw material input checks , in process controls and final testing of the product are all carried out as per laid down procedures . The final product of copper cathode are sampled batch wise and analyzed by sophisticated instruments like direct reading Emission Spectrometer, Atomic Absorption Spectro Photometers and LECO Oxygen Analyzer. At Taloja (C C Rod plant) cathodes are received along with their analysis certificates and finally Wire rods are produced by the South wire Technology. To ensure quality of the product following in-process checks and controls are routinely exercised as per a laid down procedure.a. Monitoring and control of metal temperature and oxygen content at the cast wheelb. Molten metal oxygen control by built in CO Analyzerc. Control of alcohol content and pH of pickling solution and mill coolantd. Monitoring and control of hardness of cooling water.e. Monitoring and control of soundness of cast bar.f. In line detection of flaws by eddy current flaw detector (Defectomat) Final CC rods are subjected to the following qualifying tests before the rods are marketed.a. Diameter and ovality checks.b. Oxygen content analysis by LECO Analyzer.c. Reverse twist to failure (RTF) tests.d. 10 x 10 surface twist test.e. Percentage Elongation and Tensile Strength tests. pg. 36
  • 37. f. Conductivity tests.g. Depth of surface oxide tests.h. Spiral Elongation Number (SEN) tests. Mile Stones Achieved 1967 Incorporation of HCL and assets at Khetri, Rajasthan transferred to HCL from National Mineral Development Corporation Limited. 1972 Indian Copper Corporation Limited at Ghatsila, Jharkhand, nationalized by the GoI and handed over to the Company 1975 Smelter plant at KCC commissioned with capacity of 31,000 TPA 1982 MCP commenced at Madhya Pradesh 1989 CC Rod plant at TCP commissioned with installed capacity 60,000 TPA, using south wire SCR- 2000 technology and natural gas as fuel 1994 Equity Shares of the Company listed on the BSE 1999 First restructuring of the Company approved by the GoI 2002 Second restructuring of the Company approved by the GoI 2008 The Company was granted ―Miniratna-Category I‖status. 2008 Smelter plant at KCC commissioned with capacity of 31,000 TPA 2010 Awarded ISO 9001:2008 standard dated May 22, 2010 by the Bureau Veritas Certification (India) pg. 37
  • 38. Private Limitedcertifying that the management system of thisCompany at TCP (in relation to manufacture of CCRods in diameters of 8mm, 13 mm and 16 mm) hasbeen audited and is in accordance with therequirements of the standard. pg. 38
  • 39. Financial Analysis10 Years at a glanceYEAR 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 1999-01 1998-99FOR THE YEAR 1349.1 1839.7 1799.6Turnover 1053.76 559.11 518.87 505.68 604.98 945.58 479.49 0 9 4Gross (116.61 (121.33 12.30 330.51 366.68 138.75 95.05 3.46 (88.13) (80.32)Profit/(Loss) ) )Amortisatio 73.72 81.89 89.45 58.37 55.75 59.05 57.71 58.12 90.19 59.25nNet (147.70 (184.04 (196.44 (172.01 (10.31) 246.46 313.94 105.88 55.98 (56.16)Profit/(Loss) ) ) ) )Value Added 402.06 726.12 781.08 385..39 328.53 212.30 147.37 153.09 335.91 167.24Value of 1344.2 1991.2 1909.1 1053.34 631.24 534.43 501.53 586.66 1001.66 513.47production 8 4 8AT THE YEAR ENDShare 462.61 462.61 977.45 948.95 948.95 908.95 795.11 710.11 543.61 536.61CapitalInternal 1026.9 1015.8 (110.57 (298.85 (350.30 (310.39 (169.45 195.60 (0.49) 190.97Resources 5 8 ) ) ) ) )Term Loans - 112.50 212.50 287.50 232.96 299.12 316.32 326.84 681.05 372.36Cash credit 2.30 0.98 3.98 4.81 118.23 76.11 139.49 122.04 122.70 84.16from banksCapital 1110.8 1037.0expenditure 993.99 977.89 967.71 995.10 1007.10 1024.77 1060.76 1066.21 5 6grossWorking 361.16 492.06 328.62 62.78 33.94 (1.02) (25.95) 7.51 25.95 6.49CapitalCapital 570.86 657.48 504.62 247.47 234.55 215.28 203.89 249.29 291.03 298.71employedManpower 5440 5405 5451 5583 5665 5995 7865 9502 12043 15271(No.) pg. 39
  • 40. Annual ReportThe financial performance for 2009-10 vis-a-Vis 2008-09 issummarized below :(Rs in crore)Particulars 2009-10 2008-09a. Sales 1429.85 1349.10b. Net of Extraordinary Income/(Expenses) (46.11) (30.80)c. Value of Production 1506.04 1344.27d. Cost of production excluding depreciation, provisions, write-off and interest 1217.21 1278.20e. Profit before depreciation, provisions, write-off and interest 242.72 35.27f. Depreciation, provisions and write-off 23.39 22.97g. Interest 3.19 6.82h. Profit/ (Loss) before tax 215.84 5.48i. Provision for taxation - Current 64.77 5.98 - Fringe Benefit - 0.55 - Deferred (3.61) 9.26j. Profit/ (Loss) after tax 154.68 (10.31)k. Cash Profit 174.46 21.92 pg. 40
  • 41. PEER COMPANIES Mkt Net Cap Last EPS IncomeCompany P/E profit (Rs (Rs) (Rs) (Rs cr) (Rs cr) cr)Hind.Zinc 54,971 130.10 11.42 11.39 11,624.67 4,900.49Sterlite Inds. 52,334 155.70 15.13 10.29 24,856.55 4,960.72Hindalco Inds. 32,210 168.25 12.83 13.11 65,121.25 4,351.85Natl. Aluminium 21,391 83.00 4.15 20.00 5,774.14 814.22Ess Dee 1,144 357.00 36.82 9.70 631.25 193.28Alumin.Hind.Copper 23,727 256.45 2.42 105.97 1,508.11 154.68 Social Commitment Hindustan Copper Ltd., since its inception, has made significant contribution for the upliftment of living conditions of the people of the areas where it had established its production units and mines. These areas were in Rajasthan, Bihar, Madhya Pradesh and Maharashtra and were comparatively rural and backward. HCL, has undertaken the following social activities under its rural development. pg. 41
  • 42. Clean Drinking Water: To provide clean drinking water to the people in surroundingareas of the units deep tube wells were provided on selected basis.Idea was to provide maximum benefit to villagers. Especially inRajasthan, were water is always scarcity all time open waterconnections were provided to all the villages from Khetrinagar toChaowra – a stretch of 50 Kilometers. Adult Education Classes : To spread literacy amongst Adivasis adult literacy classes weretaken to the doorsteps of the villagers. These classes with specialemphasis on rural and Adivasi Women were conducted in differentvillages. Rural lady teachers were appointed who had to complete thebasic course on 3 R‘s, conduct tests and provide certificates. Rural Medical Camps : Apart from providing medical facilities to the deserving localpopulation at project Hospitals. HCL also organized medical camps inrural areas, where team of qualified doctors diagnosed and providedfree medicines to the villagers. pg. 42
  • 43. Vocational Centres : HCL‘s units located in different areas had training centres, whoin turn organized training camps for women belonging to economicallyweaker sections of the society. Training in basket weaving, caning ofchairs, stitching of hand gloves used in the plants are some of theoccupations which became popular in rural areas. Besides this, EyeRelief Camps, Family Planning Camps, Ayurvedic Camps for villagers,are permanent feature in the Units of HCL. Abatement of Pollution : Hindustan Copper Limited is fully committed to the concept ofoperating in an Environmental friendly atmosphere. In addition to theenvironmental protection measures that were in-built with the originalproject, additional steps have been taken to conform to all theregulatory standards prescribed by Pollution Control authorities.For this purpose, De-sulphurisation schemes have been successfullyimplemented both at KCC and ICC Smelters at an approx. cost of Rs.113 crore using state of the art technologies to control Air Pollutiondue to Sulphur dioxide gas which emits out through Smelter off gases.Similarly full-fledged liquid Effluent treatment plants have beeninstalled at all units of HCL to treat the water effluents andsimultaneously to reuse the treated water in the process plants. ThusHCL has already achieved zero water Pollution.To make the environments pollution free, all the Units of HCL organizemass plantation campaigns every year. Special emphasis is laid onplants survival. This is being looked after by the horticultureDepartments of all the Units. pg. 43
  • 44. SWOT Analysis _______________________________________STRENGTHS I. Only Operating Producer of Copper Ore in India with Substantial Reserves. II. It has First Mover‗s Advantage with Significant Mining Complexes. III. Indian Copper Ore Gives a Pricing Advantage in India. IV. Vertically Integrated Operations Gives Us More Business Certainty and Flexibility. V. Ability to Capitalize on India‗s Growth and Resource Potential. VI. Experienced Management Team with a Track Record of Project Execution.VII. Good quality of copper cathode (99.99%)VIII. Well recognized client and customers across the globe. ______________________________________WEAKNESSES I. Ability to raise foreign capital may be constrained by Indian law. II. The limitations on foreign debt may have an adverse effect on its business growth, financial condition and results of operations. III. Performance is linked to the stability of policies, including taxation policy, and the political situation in India. IV. Stringent labor laws in India have adverse effect on profitability. pg. 44
  • 45. V. Insurance does not cover all of the risks its face, and the occurrence of events that are not covered by our insurance could cause losses. VI. not be able to pass the resulting increased costs to its customers.VII. economic growth in India will be detrimental to results of operations.VIII. Depend on the experience and skills of management and certain key employees. Any loss of such persons or failure to timely replace such persons could adversely affect business. IX. Old machinery X. Weak financial condition. XI. Less no. of skilled employees. _____________________________________OPPORTUNITIES I. In India, there is under-capacity at the mining stage vis-a-vis the demand. HCL is the only fully integrated copper producing Company in the country holding all operating mining leases. II. Out of 370 million tonnes of copper ore reserves in the country, HCLs lease rights cover more than 280 million tonnes. III. The Company has adequate opportunity to augment its mining capacity by increasing production from the existing mines and by developing new mines besides reopening some of the mines that were closed in the past. IV. HCL has reoriented its business strategy to take advantage of the situation and has planned to take the mine production level from the existing 3.15 million tonnes to a level of 12 million tonnes within next 5- 7 years. pg. 45
  • 46. ___________________________________________THREATS The threat perception for the Company includes I. Great volatility of world copper prices. II. Increasing cost of inputs III. HCL may also witness threat to its market share on account of intense competition from imports and other domestic manufacturers. IV. Main business risks faced by HCL continue to be the volatility of LME price of copper and the hardening of rupee against US$ as these two factors determine the selling price of copper. V. As the capacity of the private players is far in excess of countries demand, the excess of production is normally exported by them. VI. With the economic downturn in the export market, there is a risk that these players would push their material in the local market bringing the price further down.VII. New event competitorsVIII. Weak right setting of manpower. pg. 46
  • 47. SWOT Analysis By: Monika pg. 47
  • 48. About HCL/ICC Ghatshila Based in The Singhbhum district of Jharkhand, The main minesof this complex in Eastern sector are located at Mousabani, Surda,Pathrgora, and Kendadih. The heart of complex is a 1.3 million tpyconcentrator, a 16,500 tpy smelter and a refinery of 8400 tpy. Concentrates from the ore mined at the Rakha copper projectare taken to Moubhandar works of the ICC for further processing.ICCalso has a Kainite Mine in the Singhbhum district in Jharkhand. In keeping with the company‘s plan to boost power generatingcapacity ,a 4.4 MW Turbo Generating set has been installed to bringup captive power supply to the large extent. Apart from reaching new heights of Productivity from the mines,this complex has achieved notable success in the recovery of by-products. these include Nickel Sulphate ,Selenium ,tellurium ,Gold,and Silver. Plans are afoot for the extraction of other trace metals likeCobalt,Palladium,etc. Facilities for its personnel such as Housing,Education ,Social,and recreational needs ,which were lacking during the time oftakeover by the HCL ,are being improved upon to bring them at parwith the other units of the company. pg. 48
  • 49. Employees at HCL/ICCGRADES NO. OF EMPLOYEESClass I (Skilled) 150Class II (Semi-Skilled) 5Class III (clerical) 794Class IV (Unskilled) 186Total no. of workmen 1,135 NO. OF EMPLOYEES Class IV Class I (Unskilled) (Skilled) 13% Class II (Semi- 16% Skilled) 1% Class III (clerical) 70% pg. 49
  • 50. The Product - COPPER The strategic role of Copper in the entiredevelopment process ,is increasingly vital to ensure self-reliance inthis metal ,which touches many key sectors of the economy. Copper and its alloy are indispensible especially tothe electrical industry ,the transportation sector ,the generalengineering industry ,in the manufacture of commercial and consumergoods ,in building construction and hardware and of course to thedefence sector. Today Copper is a vital ingredient of the spaceage and is used in many areas including printed circuits. Copper is anon-magnetic metal with high conductivity, tensile strength andresistance to corrosion. On average, the Earth‗s crust contains only0.0058% copper, making it a scarce metal as compared with 8%aluminum and 5.8% iron. Most commercial copper ore depositscontain 0.5-0.6% (ore in India has an average copper content of 1.2-1.3%). Copper production in India, which has grownsteadily over the years, is entirely done by Hindustan Copper Ltd. Inan urgent Endeavour to improve productivity, the company hasembarked on various technological innovations and expansion plansand, is now poised to take the nation towards higher level of self-reliance. In addition, copper has several non-electrical applicationssuch as tubes for air conditioners and refrigerators, foils for printed pg. 50
  • 51. circuit boards and other industrial and consumer applications. Copperis also used in a number of alloys, including brass (copper and zinc),bronze (copper andtin), nickel silver, phosphor bronze and aluminiumbronze. *Source: CRU statistics; Ministry of Mines, Annual Report 2010 Copper Consumption From 2000 to 2009, global copperconsumption is estimated to have grown at an average rate of 2% perannum .Robust growth in Asia ,led by China, has resulted in significantchanges to global consumption patterns during the last decade.Europe and North America, which used to consume over 50% of theworld‗s refined copper during the 1990‗s, accounted for only 32% in2009. Asia, on the other hand, has emerged as the world‗s mostimportant copper market, growing at a CAGR of 7% between 2000 and2009. In 2009, Asia consumed more than half of the world‗s refined pg. 51
  • 52. copper, with China alone accounting for nearly 40% of globalconsumption. Global consumption growthslowed in 2008 during the global financial crisis, contracting by 1% in2008 to just above 18 million tonnes, largely due to falling consumptionin the world‗s mature economies. The contraction was followed bymodest growth of 1% in 2009.Source: CRU, Analysis Copper Quarterly Industry and Market Outlook July 2010 The above graph illustrates the growth of refined copper consumption at present and in future in India for the periods indicated. pg. 52
  • 53. World Copper Consumption pg. 53
  • 54. Copper Production Primary copper production starts with the extraction of copper ores. There are basically four stages of copper production, which are both independent and complementary of one another. Each of the stages of production can be done by independent companies, as each has a distinct application. Additionally, the different stages of production complement each other as they can be used in combination to produce the highest quality copper. The stages include mining, smelting, refining and leaching. The companies in the copper industry can be divided into three broad sectors: copper miners which mine ore to produce copper concentrate; copper custom smelters which smelt and refine copper from the concentrate obtained from copper mines to produce refined copper; integrated copper producers which undertake mining, smelting and refining or leaching to produce refined copper products. Alternatively, copper ore can be concentrated and refined using a hydrometallurgical process. The crushed ore is percolated in water or an acidic chemical solution to dissolve and separate the minerals. The copper is recovered from the resulting solution either through SX-EW or chemical precipitation. Hydrometallurgical processing is typically used for low grade oxide ores and some sulphide ores. The end product is the same as through the smelting and electrolytic refining process described above — refined copper cathodes. ICSG estimates that in 2009, refined copper pg. 54
  • 55. production from SX-EW represented 18% of total global refined copperproduction. Depending on the copper minerals and the types of equipment available, the subsequent pyrometallurgical treatment of the copper concentrate by smelters may take as many as three steps: roasting, smelting and converting. Roasting dries, heats and partially removes sulphur from the concentrate to facilitate smelting. The copper concentrate is then smelted to further remove wasten products and produce a liquid copper matte that is 35-75% copper. After smelting, the molten matte is processed in a converter to create blister copper that is 98.5-99.5% copper. The molten blister is fire refined to further remove waste products and then poured into moulds. pg. 55
  • 56. The cooled copper is called anode copper. In the final stage of purification, the anode copper is refined by an electrolytic process to obtain copper cathodes, which have a metal content of 99.99% copper. Copper cathodes are melted and cast into wire bars or continuous bar stock for wire manufacture, into slabs for mechanical use or into ingots for alloying. Saleable ProductsProducts and ApplicationThe principal products in HCL copper refining business is copper cathode and continuous cast rods. It also produce sulphuric acid, copper sulphate, nickel sulphate and anode slime containing gold and silver, which are by-products of the copper smelting process.Copper CathodeHCL‘s copper cathodes are square shaped with purity levels of 99.99%. The cathode production processes at ICC smelting and refining plants are accredited with ISO 9001:2008 certification. The major uses of copper cathode are in the manufacture of copper rods for the wire and cable industry and copper tubes for consumer durable goods. Copper cathode is also used for making alloys such as brass, bronze and alloy steel, with applications in the defense, minting and construction industries. pg. 56
  • 57. Continuous Cast Copper Wire Rods Its cast rods have a homogenous structure and very finegrain size and can be drawn into ultra fine wires. HCL‘s continuouscast rods are used for power and communication cables, strips forpower and distribution transformers and magnet wires as well as otherproducts. large diameter continuous cast rods (11.0 mm,12.5 mm and16.0 mm) are utilized for production of profiles and bus bars.The continuous cast rods can also be used as the basic raw materialfor the manufacture of wire and cable, including winding wire,telephone cables, power cables, wiring harnesses, house wiringcables and instrumentation and control cables.Precious MetalsHCl has a precious metal recovery plant located at ICC. Preciousmetals, such as gold and silver, are found in certain quantities incopper concentrate. Gold and silver rates are based on theprevailing international bullion market price of the metals. Thesemetals are extracted after copper refining to produce 99.95% puregold and silver, as well as selenium and tellurium. The residue afterextraction of gold and silver contains traces of platinum andpalladium which can be sold as platinum group metal mix, commonlyknown as PGM. pg. 57
  • 58. HCL suspended the operations of the ICC precious metal recovery plant in 2007 as founded it more economical to sell anode slime containing gold and silver rather than refine the precious metals itself. Accordingly, it sells anode slime containing gold and silver as a by- product in the export market. By-Product Company has a sulphuric acid plant located at ICC. The sulphur dioxide gas generated from the flash furnace and converter is treated in the sulphuric acid plant to produce sulphuric acid and sells sulphuric acid, copper slag and copper sulphate crystals, which are by-products of company refined copper production processes, in the domestic and export markets. Main Saleable Product: Wire Bar Cathode Brass-Sheets Silver Gold Tellurium Nickel Sulphate Sulphuric Acid pg. 58
  • 59. Products 2005-2006 2006-2007 2007- 2008- 2009- 2008 2009 2010 Blister 2697 14449 15568 160331 16904copper Total 3529 17330 19297 18975 20042 anodeCathode 3295 12511 15750 14266 10848 Acid 1097 12606 13453 12101 6750Selenium 2357 - 7718.519 1078.294 - Gold 320.696 - 166.07 126.82 - kg kg kg silver 195.21 - 3353.6 1178.241 - kg kg kg Global Copper Market Globally, copper products are generally consumed in five broad sectors: construction, electric and electronic products, industrial machinery and equipment, transportation equipment and consumer and general products. Of these, construction is the largest sector for consuming copper, accounting for 37% of total world copper consumption in 2009. The main copper products consumed in the construction industry include building wire ,power cable, copper plumbing and air conditioning tube, copper sheet and alloy products. pg. 59
  • 60. Other copper and copper alloyproducts consumed by the construction sector include copper sheet,strip, rods, bars and sections plus brass products. Copper sheet isused for roofing, eaves, gutters, drain pipes for rainwater and lining forfacades, while rods, bars and sections, along with brass products, areused for building fixtures and fittings. In hospitals, brassdoorknobs and push plates are widely used because it has beenproven that they help to reduce cross contamination. Electrical and electronicproducts are copper‗s second largest consuming sector, accounting for26% of total world copper consumption in 2009. Copper containingelectrical and electronic products include telecommunication cable,power cable, transformer windings, semiconductors and motors forheavy appliances. WORLD COPPER CONSUMPTION pg. 60
  • 61. Indian Copper Market The total resources of India‗s copper ore ason April 2005 (classified under the United Nations FrameworkClassification system) were estimated at 1.4 billion tonnes. Of these,369.5 million tonnes (26.5%) fall under ―reserves‖(proved and probablecategories) while the remaining 1.02 billion tonnes (73.5%) are―remaining resources‖(under feasibility, pre-feasibility, measured,indicated and inferred categories). The largest resources of copper ore arelocated in the state of Rajasthan with 668.5 million tonnes (47.9%)followed by Madhya Pradesh with 404.3 million tonnes (29%) andJharkhand with 226 million tonnes (16.2%). Copper resources inAndhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra,Meghalaya, Orissa, Sikkim,Tamil Nadu, Uttarakhand and West Bengalaccounted for about 7% of the total of all Indian estimated resources. Including HCL, refined copperproduction in India is currently dominated by four major producers.Jhagadia is currently focused on producing refined copper fromrecycled copper scrap with a total refined capacity of 50,000 tonnesper annum in 2009. At present, Sterlite‗s copper business is principallyone of custom smelting. As on 2009, Sterlite‗s refined copper capacitywas approximately 400,000 tonnes per annum. Hindalco is alsoprimarily a custom smelter with a total refined copper capacity of500,000 tonnes per annum in 2009. As Hindalco and Sterlite rely onoverseas markets for almost their entire requirement of copperconcentrate.Refined copper production in India has more than doubledfrom a modest 260,000 tonnes in 2000 to 715,000 tonnes in 2009. In pg. 61
  • 62. fiscal 2010, India‗s copper capacity was more than 1 million tonnes ofcopper, requiring approximately 100 million tonnes of copper ore. pg. 62
  • 63. HR POLICIES IN HCL/ICC 2.1. Introduction 2.2.Recruitment and Selection policy 2.3.Recruitment And Establishment 2.4.Selection Procedure 2.5.Probation Policy 2.6.Training and development policy 2.7.Health and Safety policy 2.8.Working time Policy 2.9.Conduct and Disciplines policy 2.10.Compensation and Benefits policy 2.11. Promotions and Incentives policy 2.12. Payment and Deductions policy 2.13. Employee Relation Policy pg. 63
  • 64. Introduction Human resource is most important assetin any business or for any organization. It also plays a major role inspeedy growth and maintaining stability of any organization. HRPolicies and Procedures are important for legal compliance andeffective management. Human resources is term which in manyorganizations describes the combination of traditionally administrativepersonnel functions with performance management, employeerelations, and resource planning. Human resource management(HRM) is the strategic and coherent approach to the management ofan organization‘s most valued assets – the people working there whoindividually and collectively contribute to the achievement of theobjectives of the business. Human Resource management is evolvingrapidly. Human resource management is both an academic theory anda business practice that addresses the theoretical and practicaltechniques of managing a workforce. Human Resources arePersonnel pool available to an organization. The most importantresources in any organization are its human resources. Appropriatehuman resources assure an organization that the right number andkind of people are available at the right time and place so thatorganizational needs can be met. Successful human resourceplanning should identify human resource needs. Once we know theseneeds, we will want to do something about meeting them. pg. 64
  • 65. Recruitment and Establishment In HCL/ICC there is an altogether different department for the process of recruitment and selection which is called as recruitment and selection department. Recruitment is the discovering of potential applicants for actual or anticipated organizational vacancies. CERTAIN INFLUENCE CONSTRAINT MANAGER IN DETERMINING RECRUITING SOURCES:- I. Image of the organizationII. Attractiveness of the jobIII. Internal policiesIV. Union requirement SOURCE OF RECRUITMENT: I. ExternalII. Internal EXTERNAL INCLUDES I. Employment exchangeII. AdvertisementIII. Management instituteIV. Management consultant INTERNAL SOURCE INCLUDES I. Promotion pg. 65
  • 66. II. Transfer III. Retired manager IV. Recall from long leave V. Deputation personnel VI. RecommendationsVII. Internal job posting DIFFERENT STEPS INCLUDED IN RECRUITMENT Notification:-First of all the company notify to the Employee Exchange for new posts. Notification gets send to the exchange explaining all the detail which includes: I. Nature of vacancy. II. Number of vacancies. III. Pay and allowance. IV. Place of work. V. Important dates for filling up the form. VI. Particulars regarding interview/test.(eg. date/time of interview ,place of interview ,where and whom to report).VII. Preferences and obligation.VIII. Any other relevant information. CERTAIN INFLUENCE CONSTRAINT MANAGER IN DETERMINING RECRUITING SOURCES I. Image of the organization. II. Attractiveness of the job. III. Internal policies. IV. Union requirement. pg. 66
  • 67. Selection Process Selection is defined as the process of differentiating betweenapplicants in order to identify (and hire) those with a greater likelihoodof success in a job .Selection is basically picking an applicant from(a pool of applicants) who has the appropriate qualification andcompetency to do the job. ROLE OF SELECTION Selection is crucial for the organizations effectiveness for tworeasons: 1) Work performance: Performance of the organization is veryimportant to the success of the company. So the organization alwaysemploys people who are well qualified and competent. 2) Cost incurred: cost incurred while selection process also playsan important role .This can be explained with an example: Pepsi went on a crash recruitment drive. Six people from thecompany took over Oberoi business center for six days. 3000 peoplewho had responded to the advertisements earlier issued werescanned: people were asked to respond within 100hrs by fax. Peopleselected forth interview were flown into the city. This eg just shows how expensive selection can be. Hence costincurred is very important forth success of the selection process. The difference between recruitment and selection: pg. 67
  • 68. Recruitment is identifying n encouraging prospective employees to apply for a job And Selection is selecting the right candidate from the pool of applicants. SELECTION PROCEDURE: 1) Job Analysis: Job analysis includes dividing the application according to the nature of the job. 2) Initial Screening: Includes screening of the documents send by the applicant and making a list of the qualifying candidate based on the educational qualification, experience, and background. 3) Test: Conducted by the company to select only the eligible candidate .A Candidate who achieves the qualifying marks proceeds to the next step. 4) Interview: Selected candidate have to go through interview and group discussion of a management panel of HCL/ICC. 5) Medical Fitness: A medical test gets conducted by the HCL doctors and only a fit candidate gets an offer letter. 6) Offer Letter: Offer letter is issued to the finally selected candidate including all the rules , regulation .it includes I. codes of conduct.II. pay scale and allowance.III. joining details(date ,place ,reporting authority) pg. 68
  • 69. IV. Declaration of Acceptance. 7) Verification and reference check: In this step company verifies all the details provided by the candidate through following sources  Verification of antecedents/character from civil bodies/legal authorities.  Previous organization/organizations and other sources. Probation policy Employees remain on probation for a period of six months, at the end of which they gets confirmation. Confirmation is dependent on to the satisfactory conduct and performance of the employee during the probation period. In case the conduct and/or performance is not satisfactory during the probation period and/or not found medically for confirmation service gets terminated without any prior notice or compensation. During probation period the training authorities constantly check the employees performance and also keeps an eye on the nature and all the activities of the employee. Induction Program This program specially organized by the company to introduces new joinee to the company, making them aware of the structure and working environment ,about campus ,location ,company history ,present status, achievements , and other necessary details. pg. 69
  • 70. Employee Training Employee training is the planned effort of an organization to help employees learn the job related behaviors and skills they will need to do their job properly. It is a set of planned activities that the organization will have their employees complete in order to increase their job knowledge and skills and to have them get accustomed to the attitudes and social atmosphere of the company. It will help the employee to be familiar with the goals of the organization and the job requirements. There are typical steps that go into a training program. These are outlined below. 1.Conduct Needs Assessment :A need is described as a "gap" between what is currently known and what will be needed now and in the future. These gaps in knowledge could be between what an organization expects to happen and what actually does, how employees are performing on the job and how the organization desires them to perform, and existing skills and desired skill level. In order to conduct an assessment there are some analyses that must be done. Organizational analysis:-An organizational analyses determines the effectiveness of an organization, where training needed and under what conditions the training will be conducted. Task analysis:-A task analysis is used to provide data about a job or group of jobs, and the knowledge, skills ,attitudes and abilities that are needed to achieve optimum performance. This information can come from job descriptions, task analyses, employee questionnaires and interviews ,performance evaluation, and observation of the workplace. pg. 70
  • 71.  Personal analysis:-Analyses how well an individual employee is doing their job and determines which specific employees need training and what kind of training. The methods of this kind of analysis include employee questionnaires and interviews, performance evaluation, skill and knowledge testing and the observation of behavior and results. 2.Training Methods:The two most frequently used training methods include Lecture: Lecture involves one-way communication, from instructor to learner - the learner is passive in the process. On-the-job-training: This method involves such methods as apprenticeship and mentoring, where the employee is actively engaged in the type of work they will later be doing on their own. Simulations: Employee being placed into a simulated situation of what may occur in real on-the-job situations. Techniques include: Case studies where trainees analyze a problem outlined in a report and offer solutions; Part of the implementation of the training is making sure that the training is actually teaching the employees the skills they will need - this is known as the Transfer of Training. A more technical definition is: the extent to which the knowledge, skills or attitudes learned in the training will be used or applied on the job.3) Training Evaluation: Used to evaluate the reactions of the learners, measure the learning that occurred, identify business results that are due to the pg. 71
  • 72. training and calculate if the investment in training has had any return inthe gains of the company .Business results can be measured in "hard"data and "soft" data. Hard data are measures of productivity, quality,material costs, absenteeism and turnover. Soft data is items such asjob satisfaction, teamwork, and organizational commitment on the partof the employees. If the result is up to the expectation mark thecandidate gets letter of conformation ,a certificate for successfulcompletion employee can be called as the a permanent employee andjoin the respective department. pg. 72
  • 73. Health and safety policy As a Public sector unit HCL comes under the factories act 1948 ,and Mines Act,1952 to insures the health ,safety ,welfare of all the employees within the company .Workers (Safety Health & Welfare) Act,1986; ____Health Every factory shall be kept clean and free from effluvia arising from any drain, privy or other nuisance, and in particular. I. Disposal of wastes and effluents: Effective arrangements are made in factory for the treatment of wastes and effluents due to the manufacturing process carried on therein, so as to render them innocuous and for their disposal.II. Ventilation and temperature: Effective and suitable provision are made for adequate ventilation by the circulation of fresh air, and such a temperature will secure workers therein reasonable conditions of comfort and prevent injury. III. Dust and fume: No stationary internal combustion engine operated unless the exhaust is conducted into the open air, and no other internal combustion engine are operated in any room unless effective measures have been taken to prevent such accumulation of fumes there from as are likely to be injurious to workers employed in the room.IV. Artificial humidification :Prescribing methods to be adopted for securing adequate ventilation and cooling of the air in the workrooms. pg. 73
  • 74. V. Overcrowding :No rooms in any factory are overcrowded to an extent injurious to the health of the workers employed therein.VI. Lighting: In every part of a factory where workers are working or passing there are provided and maintained sufficient and suitable lighting, natural or artificial, or both.VII. Protection of Eyes: significant rules are made to ensure the eye protection as well as other precautionary measures are taken. ___________________________________________________Safety A safety officer ensures the safety of all the employees working in company. I. Work on or near machinery in motion. II. Excessive weights. III. Pressure plant: any plant or machinery or any part thereof is operated at a pressure above atmospheric pressure, effective measures shall be taken to ensure that the safe working pressure of such plant or machinery or part is not exceeded.IV. Employment of young persons: on dangerous machines. V. Striking gear and devices for cutting off power : Factory suitable devices for cutting off power in emergencies from running machinery shall be provided and maintained in every work-room.VI. Self-acting machines. No traversing part of a self-acting machine are allowed and no material carried, if the space over which it runs is a space over which any person is liable to pass, whether in the course of his employment or otherwise, be allowed to run on its outward or inward traverse within a distance of 2ft[forty-five centimeters] from any fixed structure which is not part of the machine. pg. 74
  • 75. VII. Prohibition of employment of women and children near cotton- openers. VIII. Hoists and lifts: HCL made sure that all the machines are of good mechanical construction, sound material and adequate strength properly maintained, and are thoroughly examined by a competent person ,and a register are kept containing the prescribed particulars of every such examination. IX. Lifting machines, chains, ropes and lifting tackles. Floors, stairs and means of access. Pits, sumps, openings in floors, etc X. Precautions in case of fire. XI. Maintenance of buildings: Safety of buildings and machinery. specifications of defective parts or tests of stability XII. Precautions in case of fire: XIII. Effective measures are taken to ensure that in every factory all the workers are familiar with the means of escape in case of fire and have been adequately trained in the routine to be followed in such cases. XIV. Explosive or inflammable dust, gas, etc Where in factory any manufacturing process produces dust, gas, fume or vapour of such character and to such extent as to be likely to explode on ignition, all practicable measures are taken to prevent any such explosion by i. Effective enclosure of the plant or machinery used in the process. ii. Removal or prevention of the accumulation of such dust, gas, fume or vapour, iii. Exclusion or effective enclosure of all possible sources of ignition. XV. Precautions against dangerous fumes, gases, etc. XVI. Safety of buildings and machinery. Maintenance of buildings.XVII. Permissible limits of exposure of chemical and toxic sub-stances.XVIII. Right of workers to warn about imminent danger. pg. 75
  • 76. _____________________________________________Welfare I. Facilities for sitting.II. First-aid appliances. provided and maintained so as to be readily accessible during all working hours first-aid boxes or cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed 1*[at any one time] in the factory.III. Canteens, Shelters, rest rooms and lunch rooms.IV. Welfare officers are employed in the factory to make sure the welfare work are done in a proper manner. Other health and safety related rules:  Internet use policy: Appropriate use of electronic mail. a. reach the harassment and discrimination or other policies of the Group through. b. By amongst other things, sending or forwarding inappropriate messages or viewing inappropriate material; c. breach the intellectual property rights of persons who make material available on the Internet; d. Upload any non-work related computer program or image to the Group‘s computer system; post any non-work related messages to any Internet bulletin board, discussion list, newsgroup or other publicly accessible discussion forum. e. View material only for business purposes and not for any other purpose;  Smoking policy:Committed to providing its employees with a smoke- free working environment. pg. 76
  • 77.  Alcohol and drug policy :Committed to providing and maintaining a working environment that is healthy, safe and productive for all of its employees. Employees in the workplace who are affected by illegal drugs (―drugs‖) or alcohol may be a danger to themselves, as well as to others.a. must not attend for work under the influence of drugs or alcohol;b. must not perform duties while under the influence of drugs or alcohol;c. must not consume drugs or alcohol on work premises; andd. must not sell or distribute, alcohol or drugs during work hours or on work premises. pg. 77
  • 78. Working Time Policya. Weekly hours: No adult worker are required or allowed to work in factory for more than forty-eight hours in any weekb. Daily hours:- Subject to the provisions of section 51, no adult worker shall be required or allowed to work in a factory for more than eight hours in any day. Provided that, subject to the previous approval of the Chief Inspector, the daily maximum specified in this section may be exceeded in order to facilitate the change of shifts.c. Intervals for rest: [The periods of work] of adult workers in company and factory each day is so fixed that no period shall exceed five hours and that no worker shall work for more than five hours before he has had an interval for rest of at least half an hour .d. Spread over: The periods of work of an adult worker in a factory shall be so arranged that inclusive of his intervals for rest under section 55, they shall not spread over more than ten and a half hours in any day:e. Prohibition of overlapping shifts: Work shall not be carried on in any factory by means of a system of shifts so arranged that more than one relay of workers is engaged in work of the same kind at the same time.f. Register of workers: The manager of every factory maintains a register of workers, to be available to the Inspector at all times during working hours, or when any work is being carried on in the factory, showing— (a) the name of each adult worker in the factory; (b) the nature of his work; (c) the group, if any, in which he is included; (d) where his group works on shifts, the relay to which he is allotted; pg. 78
  • 79. g. Notice of periods of work: displayed and correctly maintained in every factory in accordance with the provisions of sub-section (2) of section 108, a notice of periods of work for adults showing clearly for every day the periods during which adult workers may be required to work.h. Night shifts: Where a worker in a factory works on a shift which extends beyond midnight (a) For the purposes of sections 52 and 53, a holiday for a whole day shall mean in this case a period of twenty four consecutive hours beginning when shift ends; (b) The following day for workman should be the period of twenty-four hours beginning when such shift ends, and the hours workman worked after midnight shall be counted in the previous day. Shift timing for HCL workers:- Shift Shift Timing A 6am to 2 pm B 2am to 10 pm C 10 pm to 6 am General 7-30 am to 12 noon General office 8.30 am to 12.30 pm 1.30 pm to 4.30 pm(on Sunday-8.30 am to 1.00 pm only.) pg. 79
  • 80. Conduct and Discipline Policy Conduct Conduct can be defined as a dynamic process and endless. There are few examples .A workman I. Should maintain absolute integrity, devotion to duty, and respect and value other employees as well as control and supervise workmen working under supervision.II. Refrain from doing anything which is unbecoming of a public servant.III. Position should not be used to influence directly or indirectly to secure undue benefits.IV. should not engage or participate in any demonstration which involves incitement to an offence. Except without previous sanction of the competent authority A Workman should not get engage in any of the following: I. Any demonstration which involves incitement to an offence.II. In radio and television program or contribute an article or write a letter either in your own name, anonymously. Or with pseudonymously. In the editing or publication of any newspaper. However this is not required in case of literary, artistic, professional or scientific character.III. Accept employment with any private firm which has official dealing with the company.IV. Get engage in the trade or business or undertake any other employment. pg. 80
  • 81. V. Bring or attempt to bring any outside influence to further in own interest in respect of matters pertaining to the service in the company. VI. Criticize the policy any of the central government or state Gov. of the company.VII. To obtain any valuable thing by any member of the family acting on behalf without consideration or with inadequate consideration.VIII. Obtain for self or for any other person or any other valuable thing or pecuniary advantage by corrupt or illegal means or by abusing own position as a public servant. IX. Engage in sexual harassment of any women at work place. X. Take part or assist in any manner in any movement/agitation or demonstration of a political nature. election of any legislature or local authority or become office bearer of political party or an organization which takes part in politics. XI. Take part in Accept any fee or remuneration or any pecuniary advantage from any work done for any public body or any private person.XII. Enter into any transaction concerning any immovable or movable property with a person or a firm having official dealing with workman himself or subordinates.A workman should: I. Forthwith intimate the competent authority on entering into a marriage with a person that of other than that of Indian Nationality. II. Avoid habitual indebtedness. III. Take due care that performance of duties is not affected in any way by the influence of any intoxicating drink or drug. pg. 81
  • 82. IV. Report within one month to the competent authority every transaction concerning movable property owned or held in the own name or in the name of family member if the value of such property exceeds 15,000/- Code of Conduct ____________________________________________Definition The Board have laid down a code of conduct for Directors and senior executives for promoting sound corporate practices and ethical conduct on the part of all concerned. This Code of Conduct applies to: » All the Directors of Hindustan Copper Limited (Company); and » Allthe Senior Management employees of the Company i.e. who areof the rank of General Manager and above including all functional headswho have the opportunity to materially influence the integrity, strategy andoperations of the business and financial performance of the Company. ___________________________________________Objective The purpose of this Code of Conduct is apart from meeting the requirements of Listing Agreement with the Stock Exchanges is to : » Articulate the high standards of honesty, integrity, ethical and law abiding behavior expected of Directors and Senior Executives; pg. 82
  • 83. » Encourage the observance of those standards toprotect and promote the interests of shareholders and otherstakeholders (including employees, customers, suppliers, creditorsand society at large); » Guide Directors and Senior Executives as to thepractices thought necessary to maintain confidence in the Company‘sintegrity; and » set out the responsibility and accountability ofDirectors and Senior Executives to report and investigate any reportedviolations of this code or unethical or unlawful behaviour._____________________________________Salient Feature This Code of Conduct lays down the following guidance forobservance by Directors and Senior Management personnel of HCL :Honesty and integrityThe Company expects each Director and Senior Executive to : (a) Observe the highest standards of honesty, integrity andethical and law-abiding behaviour when :(i) Performing their duties ; and(ii) Dealing with officers, employees, investors, creditors, customers,suppliers, auditors, lawyers, other advisers of the Company andGovernment Authorities ; and pg. 83
  • 84. (b) Foster a culture of honesty, integrity, ethical and law-abidingbehaviour among other officers and employees.Conflicts of Interest or Duty2.1 Each Director and Senior Executive must be aware of potentialconflicts between (directly or indirectly):(a) On the one hand: (i) The interests of the Company; or (ii) Their duties to the Company; and(b) On the other hand: (i) Their personal or external business interests; or (ii) Their duties to any third party.2.2 Each Director and Senior Executive must avoid placing himself orherself in a position that may lead to:(a) An actual or a potential conflict of interest or duty; or(b) A reasonable perception of an actual or potential conflict of interestor duty.2.3 Each Director and Senior Executive must:(a) Fully and frankly inform the Company of any personal or externalbusiness interest that may lead to: (i) An actual or potential conflict of interest or duty; or (ii) A reasonable perception of an actual or a potential conflict ofinterest of duty; and(b) Obtain and follow independent legal advice to avoid or resolve anyactual, potential or perceived conflict of interest or duty. pg. 84
  • 85. Compliance with Laws, Regulations, Policies andProcedures Each Director and Senior Executive must: (a) Comply with the letter and spirit of any applicable law, rule orregulation; (b) Comply with the protocols, policies and procedures of theCompany; (c) Encourage other officers and employees to do thesame.Confidentialitya) Any information acquired by a Director or Senior Executive whileperforming their duties which is confidential in nature, must not bedisclosed except where that disclosure is : (i) Authorized by the Board; or (ii) Required by law or a regulatory body.b) The existence and details of any Board and managementinformation, discussions, and decisions that are not publicly knownand have not been approved by the Board for public release, areconfidential information of the Company.c) Each Director‘s and Senior Executive‘s obligations of confidentialitycontinue even after he or she leaves the Company.Disclosuresa) HCL‘s policy is to provide full, fair, accurate and timely disclosure ofrequired information in reports and documents that are filed with or pg. 85
  • 86. submitted to any outside agency and in its other public communications. b) A Director or Senior Executive must ensure that Company‘s disclosure controls and procedures, and internal controls for financial reporting are properly complied with. Misconduct The term misconduct connotes a vast number of actions. Following are the illustrations of misconduct while performing duty: I. Habitual late or irregular attendance or willful absence. II. Acting in a manner prejudicial to the interest of the company. III. Willful insubordination or disobedience, whether alone or I combination with others ,of any lawful and reasonable order of the superiors. IV. Gambling within the premises of the company. V. Giving false particular relating to the employment. VI. Gross or willful negligence.VII. Drunkenness or riotous or disorderly or indecent behavior in the premises of the company or outside such premises where behavior is related to or connected with the employment.VIII. Smoking within the premises of the company where it is prohibited. IX. Damage to the any property of the company. X. Sleeping while on duty. XI. Commission of any act subversive of discipline of goal behavior. pg. 86
  • 87. XII. Abetment of or attempt to abetment of any act which amounts to misconduct. XIII. Demanding or accepting gratification other than illegal remuneration in respect of an official act or for using influence with any other official. XIV. Commission of any act which amounts to a criminal offence involving moral turpitude. XV. Collection without permission of the competent authority of the money within the premises of the company except as sanctioned by any law of the land or rules of the company. XVI. Theft ,fraud or dishonesty in connection with the business or property of the company or of property of another person within the premises of the company.XVII. Possession of assets disproportionate to source of income.XVIII. Absence from the assigned place of work without Permission or sufficient cause, without leave or overstaying the sanctioned leave for more than four consecutive days without sufficient grounds or proper or satisfactory explanation. XIX. Cases of misappropriation, forgery, or cheating or other similar criminal offences. XX. Blatant violations of systems and procedure of the Company. XXI. Exercise of discretion in excess, where no ostensible/public interest is evident.XXII. Failure to keep the controlling authority/superiors informed in time about any irregularities/shortcoming noticed during the course of work which may adversely affect the interest of the company.XXIII. Interference or tampering with any safety device installed in or around the premises of the Company. pg. 87
  • 88. XXIV. Purchasing properties, stores, machineries etc. from or selling to the Company without express permission in writing from the competent authority. _________________________________Disciplinary Procedure There are established procedure to check the growth of the indiscipline, misconduct and subversive action in HCL .Conduct, Discipline and Appeal Rules of the company deal with the disciplinary procedure in respect of the executives. The penalties that can be imposed under this rule are Minor penalties 1. Censure 2. Withholding of promotion 3. Withholding of increments of pay with or without cumulative effect. 4. Recovery from pay or such other dues , the whole or part of any pecuniary loss caused to the Company by negligence or breach of orders. Major Penalties 1. Reduction to a lower grade or post or to a lower stage in a time scale. 2. Removal from service which shall not be a disqualification for future employment. 3. Dismissal pg. 88
  • 89. _______________________________Disciplinary Authorities In HCL/ICC a different panel is made or an officer is appointed to decide the penalties and also implementing the of disciplinary action for Grades Disciplinary Penalties it Appellate Reviewing Authority can Authority Authority impose1 E8 & E9 CMD All A Board committee of functional Directors headed by CMD2. E3 to E7 All Functional CMD A Directors committee of functional Directors headed by CMD.3 E1 to E2 Project All Functional CMD and head/ Directors below Executive Director(HR) pg. 89
  • 90. Compensation and Benefits Policy ___________________________________________Allowance1. Dearness Allowance It is paid every quarter with effect from 1st Apr,1st July,1st October and 1st January based on the percentage increase or decrease in the quarterly average of All India Consumer Price Index (AICPI) for the period ofa) December-February,b) March-May,c) June-August andd) September-November respectively over AICP 1708(Base1960=100)2. Travelling Allowance Employees of HCL are entitled for travelling allowance if their journey is taken for the following purposes.a. Tour on official duties.b. To appear in the departmental examination. Interview or selection test conducted by the Company.c. Recall from leave.d. Transfer.e. Leave travel concession.f. For medical examination/or treatment as permitted under Company rule. pg. 90
  • 91. g. To participate in sports ,training programs/seminars and conferences or appear for interview for appointment in the Company.h. Superannuation/retirement.i. Appearing in court of law, departmental, or vigilance enquiry or for interview for appointment in the company.j. Journey of family to home town/anywhere in India where they intend to settle in the event of death of employee.k. Discharge/termination on medical grounds.l. To receive national/state and /or company‘s award or any other award duly approved by the Chairman cum Managing Director. Grades Entitlement E4 &  Air above  AC 1STclass by rail.  Highest class by steamer  Actual taxi fare or Rs.6.70/km by own car or actual whichever is lowest. T8-T10,  1st class or AC II tier Sleeper by rail. C5,C6,and  Highest class by Steamer. E0 to E3  Rs.5.00/km by road or actual whichever is less T3-T7,  1st class or AC II tier Sleeper by rail. C3,C4  Highest class by Steamer or middle class if there are more than two classes.  Rs.2.75/km by road or actual whichever is lower. T1,T2,  2nd class Sleeper by rail. C1,C2  Lowest class by Steamer or middle class if there are more than two classes.  Rs.1.40/km by road or actual whichever is lower.3. Daily Allowance: In addition to Travelling Allowance, employees are entitled for allowance for outstation duty. Period of actual absence from Amount of daily headquarters Allowance (DA) pg. 91
  • 92. Each completed period of 24 hours One Full DA 12 Hours or more but less than 24 One Full DA Hours Less than 12 Hours ½ DA Long period of tour to any particular place is regulated separately by competent authority with reference to rules. Specification on DA:a. Daily allowance is admissible for holidays or forced halts during tour, but not for any leave availed during.b. Period of absence begins when employee leave respective headquarter on scheduled time of departure and end on return to the same place .Period of delay in departure/arrival time os taken into consideration.c. When an employee during a tour is treated as a guest of another agency ,the rate of daily allowance will be 25% of actual DA. However ,when :a. Lodging is free –entitled to DA as per rate provided.b. Boarding is free-entitled to 50% DA and actual accommodation charges. Accommodation charges and Daily Allowance on official tour. Sl.No. Accommodation charges Daily subject to maximum Allowa entitlement(Rs.) nce for Specified Ordinary food localities localities and inciden tals(Rs ) 1 2 3 4 5 1. E9 Actual Actual 460 and above 2. E8 4,500 80% of 425 pg. 92
  • 93. specified localities 3. E5- 3,300 -do- 400 E7 4. E3 & 2,500 -do- 330 E4 5. E1 & -do- -do- 260 E2 6. E0 1,125 -do- 220 7. T8- 1,000 -do- 200 T10, C5 &C6 8. T3-T7 750 -do- 190 C3 & C4 9 T1,T2 375 -do- 130 C1 & C2 Ceiling rates of accommodation charges are exclusive of taxes and service. 4. Transfer allowance On transfer from one unit to other, employees are entitled to reimbursement of actual expenses occurred during transporting personal effects from old to the new station as under:Category Weight Places connected by rail Places not limit connected by rail 1 2 3 4 5 6 T1,T2 1500kg Expenses Actual Actual Cost of C1,C2 reimbursable expenses expenses or transportation subject to subject to twice the by road limits laid maximum amount as limited to half down in expenditure per Goods truck load. col.2. incurred had train, the maximum whichever is pg. 93
  • 94. luggage been less. transported by Goods train. T3-T7 3500kgs -do- -do- -do- -do- C3,C4 C5,C6 Full -do- Actual -do- -do- E0-E3 wagon expenses subject to cost transporting ,full wagon load of full personal effects by goods team. E1 and Full -do- -do- -do- -do- above wagon or two containers by railway container service. Entitlement towards Transfer Grant ,Dislocation Allowance on transfer.Category Transfer Expenses Others Dislocation Grant incidental to Allowance journey(for travel by rail only)*T1,T2 Rs.5,000 Two extra Travelling Non- Rs.8,000C1,C2 fares as expenses for Executives entitled , self and family limited to 1st as per class rail entitlement fareT3 to T7 Rs.7,000 -do- -do- E0-E4 Rs.11,000C3,C4T8 to Rs.9,000 -do- -do- E5 and Rs.15,000T10,C5,C6,E0 Aboveto E3E4 and above Rs.11,000 -do- -do- *Note- In case of travel by air ,no incidental is admissible. pg. 94
  • 95. Octroi duty ,entry tax ,terminal tax ,insurance charges for transportation of personal effects/vehicle on production of receipts. There are terms benefits Superannuation/Retirement, Death, Termination on Medical Ground. In case transportation of vehicle on transfer where head of expenditure is freight in amount reimbursable is actual freight between two stations in case of railway and actual or freight admissible had the vehicle been transported by train ,whichever is less in case of transportation by road.5. Canteen Allowance Its Rs.16/day of attendance on regular working day .6. Night-shift Allowance Paid@Rs.30 per shift is to executive and Rs.25/shift to workmen who perform duty in the night shift commencing from 9.00 pm onwards.7. House Rent Allowance HRA is paid to employees at projects Rs.100/month to the non- executive. And at the offices at the rate of 30%of basic pay.8. Conveyance Allowance If any employee is using his vehicle for office purpose then it can be reimbursed by producing the vehicle running and maintenance bill. pg. 95
  • 96. For two wheeler vehicle amount paid is Rs.900/- For 4 wheelers E0 ……….Rs.1500/- E1 to E4……….Rs.2300/- E5 and above……Rs.2500/-9. Subsistence Allowance Paid during the suspension period of an employee at the rate of 50% (basic+DA) . But in case of punishment or stern action nothing will be paid. pg. 96
  • 97. Holidays and LeavesI. National Holidays: 1. 26th January 2. 15 August 3. 2nd OctoberII. Closed/Restricted holidays: 1. 3 closed holidays on festival occasions. 2. 4 restricted holidays out of an exhaustive list declared in the beginning of each calendar year. ___________________________________________________Leave Company is liberal in granting leave provided by the work of employees department is not dislocated. Leave is not claimed as a matter of right. Employees can be granted leave provided work of the department is not hampered. Authority have the discretion refuse revoke leave, if the exigencies of work demand this. Leave application should be made in the standardized proforma available in respective department. Application for leave should come sufficiently in advance. Employee cannot suddenly absent on medical grounds ,please enclose medical certificates ,both for unfitness to work initially and fitness to work when employee report back for duty. pg. 97
  • 98. Casual leave : Casual leave is admissible for 1 day/month in a calendar year. 12 days in a calendar year. Is not cumulative. Holidays ,restricted holidays ,off days intervening a spell of casual leave will not be included as casual leave. Can not exceed 10 days at a time. Can not be combined with any other kind of leave other than special casual leave or leave without pay. Earned Leave: An executive is eligible for earned leave at the following For 1st year of service:-@ 1 day for every 22 days. For subsequent years:-@ 1 day for every 11 days. Cannot be Earned during any period of leave except during casual leave or special leave. Any holiday or leave falling within the spell of earned leave counted as earned leave. Can be accumulated up to a maximum of 300days. For non-executive Employed below the ground:-1 day per every 12days of work.(days of attendance). pg. 98
  • 99.  Employed above the ground:-1 day per every 15 days of work.(days of attendance). Note:- Calendar year‘s service deemed to have been completed 240 days of attendance. Additional earned leave: 5 days bonus leave is given on completion of 260 days of attendance. Can be accumulated upto 300 days. Sick Leave After completing every calendar year a workmen is entitled to avail 1 day sick leave per month. 12 days on full pay. 24 days on half pay. Accumulated up to 240 days on half pay. Accumulated up to 120 days on full pay. Can be given only on medical ground. Ceiling has been removed. T.B Leave Given in case if any workmen is suffering from a disease tuberculosis. 12 months on half pay. And 12 months without pay. 6 months at a stretch and then 2 months. Can be extended to a period of 18 months. pg. 99
  • 100. Quarantine Leave: Given in the case if any member of employees household is suffering from any infectious disease. on certification by District Public Health Officer or Chief Medical officer of the project. Special casual leave of maximum of 30 days in a year is allowed for quarantine due to infectious diseases. Transit Leave: Employee is entitled for this leave when is transferred from one station to another. 6 clear working days including Sundays and holidays and1 day for travel of 400 kms distance or part thereof. For airtime its restricted to 1 day only. Study Leave: Granted for full time course of study in a recognized institution/university in advanced scientific, technical or professional subjects directly related to employees sphere of duties and is of distinct advantage of the Company.. Employee must have a proven record of good conduct and satisfactory performance Should have completed five years of service in the company. Should not be over than 50 years of age. Granted only once. pg. 100
  • 101.  Period will be maximum of 24 months. Can be extended to 12 months in case of exceptional circumstances. Maternity Leave: In accordance with the provisions of the Maternity Benefit Act 1961 as amended from time to time female employees are entitled for this leave.a. Pre-natal leave:-6 weeks or 42 days.b. Post-natal leave:-42 days. In case of exceeding these leave it gets adjusted from other leaves. It does not get accumulated. Special Disability Leave: Employee disabled by injury inflicted or caused in consequence of the duty the due performance of official duty. Granted on full pay not exceeding 90 days. ________________________________________Leave Encashment Company offers the facility of yearly encashment of the leave earned by employees during the course of their service. Following conditions apply before availing this service, leave encashment Is Admissible only once in a calendar year. Is Maximum of 30 days or 50% of the total Earned Leave standing to employee credit whichever is higher can be encashed at a time. Is Restricted to 30 days per year. pg. 101
  • 102.  Per day Rate is calculated on the basis of salary drawn by the employee in the month preceding the month in which encashment is availed / 26 (working days). Is calculated including basic pay(including special pay), dearness allowance, City Compensatory allowance and Local Allowance, but excluding all other allowance like House rent allowance, Conveyance allowance etc. Now cap has been removed from the encashment of Earned leave. Employees are eligible to encash half pay leave/half pay sick leave(after being converted into full pay leave)only at the time of retirement from the service of the company of the Company on attaining the age of superannuation. pg. 102
  • 103. Expense policy Reimbursement Of Conveyance Expenses: Employee drawing reimbursement of conveyance Expense will not be eligible to use office vehicle or taxi fare or other cost for discharging their duties on working days including their off days including those of holidays. Entitled for reimbursement of conveyance Expense only when journey is beyond the 8kms but within the municipal limits of H.Q.s for official work. For reimbursement of conveyance Expense employee have to apply through their Controlling officer, along with attested copies of document in support of and ownership of vehicle and also controlling officer will clarify that it is being used for the office purpose only. Transport Subsidy: Executives are paid Transport subsidy if they do not utilize Company‘s transport or do not claim local travelling expenses/reimbursement of Conveyance expenses from the company at the rate of Rs.300/-month, and non-executive Rs.12 per day of attendance. Reimbursement of travel expenses for leave travel concession availed on certification basis Category Reimbursement of to and fro fare T1/T2/C1/C2 AC Chair car by rail T3-T7,C3 & C4 First class by rail T8-T10,C5 & First class by rail C6,E0-E3 E4 and Above AC first class by rail. pg. 103
  • 104. ____________________________________________Concessions Company provides Leave Travel Concession also called as LTC. In which company pays for the employee and employee‘s family for travelling to any place in India. Eligibility All regular employees who have completed one year of service . Family The term of LTC family means :a) Employee spouse(only one)b) Legitimate children, step children, legally adopted children(including elder sons upto 25 years of age), married and widowed daughters so long they are residing with and wholly dependent on the employees.c) Parents provided they are residing with and are wholly dependent upon the employee. Note:- In order to declare dependent, the income of the dependent member from all sources should not exceed Rs.3,000/ .scholarship/stipend are not treated as income for deciding dependency of dependent children. There is no age restriction for physically handicapped or mentally retarded and wholly dependent and residing with the employee. Married daughters will cover only dependent daughters who are divorced, abandoned, or separated from their spouse and are residing with the employee. Entitlement An employee can avail LTC for self or/members of his family restricted to 6 adult by entitled class twice in a block of 4 years-once pg. 104
  • 105. for home town and once for journey to any place in India or twice tohome place in a block of 4 years. LTC can be availed for four family members in case ofemployees joining after 1.1.2006.LTC on certification basis In lieu of availing LTC to home town On a certification basis itcan be availed up to 500kms each way restricted to 4 adult and for1600 kms in lieu of LTC to any place in India.Home Town Home town should be permanent home town or village asdeclared by employee on joining the service of the Company andaccepted by the competent authority. In exceptional case once changeof the home town can be accepted by the competent authority in wholeservice period.Any place in India Any place in India means anywhere in India within the territory ofIndia whether on mainland or otherwise.Shortest Route: Route to reach LTC destination most speedily from work/orposting place by using entitled mode of travel. pg. 105
  • 106. Promotion and Incentive Policy _______________________________________Incentive schemes Incentive schemes comprises of following 4 components:a) Business Performance Incentive (BPI)b) Operating Cost Incentive (OCI)c) Production Output Incentive (POI)d) Direct Production Incentive (DPI) The four components of incentive, their objective and entitlement, broadly defined broadly defined for employee categories are: Incentive Objective Entitlement Component BPI (Business Equal to or more All employees Process than 100% MOU 100% Incentive) Target. OCI (Operating Threshold 104% All employees Cost Incentive) of last year cost 100% per unit output. (Except employees at Ho and other offices) POI(Production Threshold 80% of a) Production, Output MOU Target. maintenance &Technical Incentive) services 100%. b) Services –stores 75% c) General Services 33% -office Timing DPI(Direct Reward a) Direct Production Production individuals/group 100% Incentive) production b) Production Support performance as -Direct 2/3 per IE of (a) Standards/Design c) Production Support Capacity. Indirect Threshold is 80% ½ of(a) performance for d) General Service Nil group. pg. 106
  • 107. ______________________________________Executive Promotion Company offers growth opportunities to its employees consistentwith their Seniority, qualification, performance and growth potentials. Executives are classified into three groups for determining thequalifying period of service for promotion.Group I For Technical Posts Degree in engineering/technology with appropriate statutory qualifications. For Non-Technical Degree with appropriate professional Posts qualifications. For clerical Duty Degree in medical science Medical Posts For specialist Duty Degree in medical science with post Medical Posts graduate degree of specialization. R $ D Posts in Post graduate degree in Chemistry. Analytical Laboratories For post in geology Post graduate degree in Geology. cadreGroup II For Technical Recognized diploma in Posts engineering/technology Or A degree in science with appropriate statutory qualifications. For Non- Recognized diploma in Technical engineering/technology Or Posts University Degree in Arts/Science/Commerce Or Pass in Intermediate Examination of the Institute of Chartered Accountants or Institute of Cost and Works Accounts. pg. 107
  • 108. Group III Posts in mining cadre Matriculation with Forman/Mines and survey cadres Surveyor Certificate of Competency under MMR Other Technical and Matriculation and qualified in Non-Technical Posts prescribed departmental tests. Promotion of executive as per approved channels of promotionin accordance with the cadre scheme indicated in theHCL(Recruitment and Promotion rules)for executives. Prescribed Minimum Length of Service in the lower grade forpromotion to the next higher grade:- Length of service (in years)in lower grade for promotion to higher grade Group E E E E E E s 1 2 3 4 5 6 I 3 3 3 3 3 3 II 3 4 5 6 N N A A III 5 6 N N N N A A A A Exceptional Case:-outstanding performers in Group-II and GroupIII can be considered for promotion up to E5 and E3 respectively withthe approval of the appointing authority.____________________Departmental Promotion Committee (DPC) It is constituted by the appointing authority for posts to be filled inby promotion. Normally consist of at least three Executives ofappropriate status and rank in relation to the posts to which pg. 108
  • 109. promotions are being considered. The basis of promotion is ―Merit with due regard to Seniority. Merit is judged by the DPC on the basis of the Executive‘s past performances, records etc. For determining the suitability of Executive for promotion, DPC considersa. Qualificationb. Length of service and Annual Performance Appraisals.c. Reports of the Chief vigilance officer, if any. The recommendation of the DPC is subject to the approval of the appointing authority.Persons selected for promotion are arranged in order of their inverse seniority in the grade from which they are they are promoted. Exceptional Cases: If a person is outstanding and deserve special consideration, the DPC may place him in higher position vis-à-vis his seniors. Other Promotion Methods:a) Time Scale Promotion: An executive of E1 level belonging to Group I will be entitled to be promoted to the E2 level on completion of 4 years service at E1 level, subject to satisfactory performances records. It is confined to Group-I executives only.b) Seniority: Determined by the merit order in which recruitment or promotion is made to any category of posts, provided the Executive recruited or promoted joins within 120 days from the date of joining. If the executive joins later than 120 days, seniority will be effective from the date of joining the post. pg. 109
  • 110. Inter-seniority is determined in the category of same category ofposts, employees relative rating is determined in the panel by theDPC/or Selection Committee.Executive up to E4 level who completed 10 years of service and 48years of age are given the next higher scale of pay which is treated aspersonal to him on the basis of their satisfactory performance recordsbut without any change in his existing designation._________________________Promotion Policy For Non-ExecutiveFor non-executive the promotion policy is different for different plant. Itis based as per the guidelines and norms provided in the recruitmentand promotion rules and after due approval of competent authority. pg. 110
  • 111. Performance Appraisal System The executive performance Appraisal System is used to access the performance of executive. The Main Objective of the system are: I. To integrate individuals executive roles and goals with those of Organization objectives through performance linked assessment.II. To distinguish between different level of performance on relative basis and to identify executives with potential to grow in the organization.III. To indentify the Training and Development actions to be taken to enhance the performance.IV. To increase awareness of tasks/targets and the responsibility to ensure fulfillment of the same. The appraisal process consist of the following: I. Self AppraisalII. Performance Review and PlanningIII. Performance Assessment.IV. Development planV. Final Evaluation and Grading Few Important things related to Performance Appraisal system. a) The reporting officer access the specified job Performance and Management ability factors on a 5 point basis. From Outstanding to a minimum of Poor. b) There is ten factor Performance Assessment for executives in the level of E1 to E4. c) There are twelve factors Performance assessment for E5 to E8. pg. 111
  • 112. d) Each factor has been assigned weight to indicate its importance in the overall assessment. Calculation of Score Factor score is calculated by multiplying the scale point tick marked with the assigned weight of the factor i.e. Factor score=Scale point tick marked*weight. The aggregate of factor scores is the total of Appraisal score. The assessment Factors and corresponding weightage are given below in the table: For the executive at the level of E-1 to E-4 E-5 toE-8 A. Job Performance Factors Weightage Weightage 1.Quantity of output 5 4 2.Quality of output 5 4 3.Cost/time control 5 4 4.Job knowledge and Skill 5 3 B. Managerial Ability Factors 5.Planning and Organizing 2 3 6.Problem Analysis and Decision 2 3 Making 7.Managing Human Resource 2 2 8.Lateral Coordination 2 2 9.Team Building 1 2 10.Communication Skills 1 1 11.Conceptual Skill - 1 12.Managing Skill - 1 pg. 112
  • 113. ________________________Performance Scales for Executives The existing Performance Appraisal System provides for 150marks. It is divided into two parts viz.50% for the reporting office rand50% for the reviewing officer.Final grading is given by reviewing committee.Based on the marks secured out of 150, the Executives are read onthe following scales: Rating Total Remarks Apprais al/Factor score Outstanding 131 to Exceptional overall 150 performance distinctly stands out compared to others. Very Good 106 to Overall performance 130 of high standard. Better than majority. Good 76 to 105 Satisfactory overall performance. Meets the job requirements. Fair 41 to 75 Performance barely adequate. Requires improvement in certain areas. Poor 1-40 Performance inadequate and well below acceptable standards. pg. 113
  • 114. ________________________Annual Assessment of Non-Executive Non-Executive employees are assessed by their reporting officer through a stipulated annual assessment Performa. Non-Executives are assessed with reference to the factors like Devotion to duty, discipline, dependability. Suitability Efficiency Integrity Punctuality Work habits Inter-personal relationship Knowledge of the rules and procedure Initiative Quality of Work, Efficiency in work, work habits, Safety Attendance Punctuality Defects in character if any like, insobriety, indebtness etc which militate against efficiency, outstanding work, suitability for promotion etc .this is also an integral part of non-executive assessment system. The assessment made by the Reporting officer will be reviewed by the Reviewing officer. pg. 114
  • 115. ______Service Linked Advancement Scheme (For Non-Executive) Objective of this scheme To remove the feeling of stagnation and foster motivation. Eligibility Employee who has completed 6 years of service in a particular scale of pay Benefits Employee gets placed to next higher scale without any change in the designation. Seniority will be retained which employee has held in the post held by him in the previous scale of pay. Service Linked Promotion Scheme A non-executive whose channel of promotion is to the immediate next higher scale of pay to which he may normally be eligible for promotion as per R & P Rules and has completed six years of service in the same scale of pay is being placed in the next higher grade. A non-executive who, as per channel of promotion, gets two scale jump is eligible for being placed in the next higher scale of pay to which he may eligible for promotion as per the R & P rules if he has completed nine years of service in the same scale of pay. pg. 115
  • 116. A non-executive who, as per channel of promotion, gets more than two scale jump is eligible for being placed in the next higher scale of pay to which he may eligible for promotion as per the R & P on completion of ten years of service in the same scale. The grant of personal scale of pay will not lead to any change in designation. ________________________________Inter-Unit Awards Schemes Objective The objective of the HCL award schemes are to bring following changes amongst employees:- To induce spirit To bring in a sense of competitiveness To encourage inter-unit competitiveness in various areas of activity. Best performing unit in a financial year is judged by a committee of Judges constituted by Chairman cum managing Director on the following parameters:- Production and Productivity Safety House Keeping Industrial Relation Environment and Ecology pg. 116
  • 117. The award can be shared between more than one unit in a perticualr financial year, depending on performance. Criteria and Weightage Areas Weightage Marks 1. Productivity 80% 160 2. Safety 20% 10 3. House Keeping 20% 10 4. Industrial Relation 20% 10 5. Environment and 20% 10+5 Ecology Total 100% 200 ___________________________________________Other Benefits1. Underground Allowance: For Executive Employee holding underground duties are eligible for this allowance. Subject to Minimum stipulated hours of work underground every day. Rate is @15% of the existing basic pay to maximum of 1650/- per month. For Non-Executive On the basis of actual days of attendance. Paid only when required to work underground for minimum stipulated hours. Rate is @20% of basic pay. However for calculating underground allowance basic pay is reduced by Rs.1500/-. pg. 117
  • 118. Cash Incentive For Blood Donation In case of employee Rs.100/- is paid along with one day leave. In case on non-employee donates blood to employee Rs,50. Attendance Bonus The attendance Bonus as applicable for non-executive Slab Rates(Rs. Per month) Not a single day absence in a calendar 250 month Absence one day in a calendar month on 150 authorized leave More than one day absence in a calendar 75 month on authorized leave Unauthorized absence/absence on Nil without pay even for one day in a month _________________________Payment and Deduction Policy Pay Scale Grade Revised Pay T1/C1 8680-3%-15840 T2/C2 9080-3%-16560 T3 9480-3%-17350 T4 9880-3%-18060 T5/C3 10280-3%-18880 T6 10680-3%-19610 T7/C4 11080-3%-20350 T8/C5 11480-3%-21090 T9/C6 11889-3%-21880 T10 12100-3%-24760 pg. 118
  • 119. Retirement Policy HCL as all other public sector units has its retirement policy considering the benefits of its employee. The retirement benefits includes:-  Provident Fund  Gratuity  Half Pay Leave  Voluntary Retirement Benefits I. Provident Fund Definition As the name suggest, provident fund provides employee with a lumpsum financial support on cessation from the service of the Company, apart from various loans and withdrawal during the period of service. Eligibility All regular employees of the Company including persons by or through contractor in connection with the work of the establishment. But, excluding retired/superannuated person, apprentice, trainee, casual labour are required to become member of the Fund from the date of the joining the Company. Contribution pg. 119
  • 120.  Employee contribution :- 12% of emoluments i.e (basic + D. A), employee may contribute more if wish so.  Company contribution:- Will be limited to 12% in any case. Here pay includes personal pay and non-practicing allowance. If the service rendered is more than 6 months it will be counted as 1 year. Company does not contribute when employee is not in a position to contribute.  i.e leave without pay. Interest At present interest paid on both contribution is 8.5% per annum. Withdrawal Company may permit employee to withdraw from the fund to meet:-o Medical expenditure of employee or his family member.o Expenses on purchase of lands and buildings of a dwelling house.o Marriage expenses.o Funeral expenses.o Any other religious occasions.o Purchase of equipment to minimize hardship on account of physical handicap etc. as per rule. pg. 120
  • 121. Nominations  A nomination in favor of a member of family in the prescribed form to receive the amount in the event of death of the employee is required.  Employee may nominate more than one nominee.  Employee has to clearly specify the amount to be shared by the nominations.  In case if employee does not have a family he may nominate anyone.  Nominations can be changed by filling a fresh nomination.II. Gratuity Employees working in HCl are eligible for gratuity in accordance with the Payment of Gratuity Act, 1972.  Paid at the rate of 15 days salary (basic+DA)for each completed year of service  Only payable to the employees who completes least 5 years of service with the Company.  Maximum gratuity is 10 lakh. Calculation  Up to 30 years of service (Wages÷26) × 15 × no. of years of service rendered.  Beyond 30 years (Wages÷26) × 30 × no. of years of service rendered. pg. 121
  • 122.  For computing gratuity if the service rendered in excess of 6 months beyond 30 years period of service is taken as one completed year of service. If an employee is on leave without pay during the last month of service, gratuity is calculated taking full month‘s salary/wages. In case of death or permanent incapacity due to bodily or mental infirmity the amount of gratuity is calculated as under: Period of service Amount of Gratuity During the first year of service 2 months emoluments After 1 year but before 5 years 6 months service emoluments After completion of 5 years of 12 months service emoluments or gratuity as under the Act whichever is higher. Forfeiture Can be partially or wholly fortified if the services of an employee is terminated for his notorious or disorderly conduct, act of moral turpitude provided the offence is committed in course of his employment or any other of violence in his part. If the omission or negligence causing any damage or loss or destruction of property belonging to the company, gratuity will be fortified to the extent of the damage or loss so caused. pg. 122
  • 123. III. Half-Pay At the time of retirement an employee is eligible to encash Half Pay Leave/Half Pay Sick Leave (converted into full pay leave).IV. Voluntary Retirement Benefit This is a retirement, which employee taken by own willingness. These benefits are also same with Retirement Benefits.V. Death Benefit HCL is liable to pay under the workmen‘s compensation act, 1923 or any compensation act at per with the said Act.  Payable under group personal accident policy.  Rs. 61,750/- is paid to the dependent of employee who die while in service of the company.  Paid to the nominee of the deceased employee. Not paid in following circumstances If death has occurred due to the  Righteous or disorderly conduct.  Any act of violence on his part.  Intentional self injury or suicide. Social Security Schemes 1. Ex-gratia payment in case of accident: In the case of injury caused by accidents resulting in permanent total disability as prescribed in the section 2(b) read with schedule 1 of the pg. 123
  • 124. workmen‘s compensation act,1923 and where such permanent disablement occurs otherwise than in the course of (and arising of) employment ,an ex-gratia lumpsum amount of Rs12000/- is paid to the workman only in case when there has been no violation of Section 3(b) of the Workmen‘s compensation act,1923 or involvement I acts opposed to public policy.2. Ex-gratia in case of fatal accident:- Adhoc ee-gratia of Rs.3,000/- is paid to the person entitled receive PF amount in case of fatal accident arising out of and in cource of employment in case of non-executive.3. Employee Benefit Program Scheme:- As a security measures company offers insurance policy to all of its employees under ―employee benefit‖ program scheme. The scheme envisage worldwide coverage on 24 hrs basis. The insurance covers accidental death, Permanent total/ partial disability including those on account of Terrorism and in case of employment. The maximum benefit under the scheme is Rs. 2.50 lakh. However in case of compensation under any statutory liability arising out of any kind of accident is more than benefits available under this scheme, the company will make a payment of any extra amount thus involved. pg. 124
  • 125. 4. Benevolent Fund Scheme: Objective: To provide financial assistance to the families of death of the employee while in employment in the company due to any reason whatsoever. Eligibility: All employees on permanent roll of the company (including trainees inducted for employment in the company on successful completion of training) are deemed to be members of the scheme. Benefits: Benevolent grant is sanctioned to the nominee of the deceased employee calculated @ Rs.40/- per employee as on rolls of the company as on the last date of the month in which the death has occurred. The sum of Rs.40/- includes employees contribution of Rs.20/- per death and a matching contribution made by the company. Paid within a period of 90 days of the death. Paid To the nominee of PF. If there are more than one nominee than, the benefits gets distributed amongst all of them in the ratio mentioned by the deceased for PF. __________________________________Employee Relation Policy Employee Engagement A successful employee engagement strategy helps create a community at the workplace and not just a workforce. When employees are effectively and positively engaged with their pg. 125
  • 126. organization, they form an emotional connection with the company. This affects their attitude towards both their colleagues and the company‘s clients and improves customer satisfaction and service levels. Beyond initial recruitment and induction, employee engagement activities can be broken into a number of groups. These include: I. Communications activitiesII. Reward schemesIII. Activities to build the culture of the organizationalIV. Employee participation in ManagementV. Team building I. Communication Activities Company continued to improve communication with the employees through various measures. Communication programmes relating to safety,productivity and energy conservation were also organized at the Unit level. The Companies quarterly House Journal Tamralipi published in Hindi and English was well circulated. For better dissemination of information, Personnel Policies/Rules/Amendments were placed on the Company‘s website and could be accessed by the employees. The Company is also using its internal e-mail facilities to improve communication in general. Image building exercises gained momentum through extensive news and media coverage. The Company has also made its presence felt in the national and international fora through quality participation. The Company has introduced a system of centralized farewell functions at all Units for its retiring employees on the last working day pg. 126
  • 127. of the month which is held at Unit Head level. Retiring employees are also paid their payable dues as per rules on their last working day.II. Reward Schemes Reward schemes are an important part of a companys overall employee engagement program.  to remove barriers to satisfaction in the organization;  framework for rewarding everyone in the organization for their performance;  give those who are motivated by financial gain an opportunity to achieve this. This includes  Compensation and benefit program This includes the Allowance o Holidays And Leaves o Leave Encashment o Expense Policy o All other type of Concessions  Recognition programmes In HCL there are following programmes for recognition o Incentive Schemes o Performance Appraisal System o Promotion Policy  Long service and good performance awards o Annual Assessment o SLAS pg. 127
  • 128. o Annual increment at the rate of 3% (Basic+DA) every year on the 1st of April. In the following increment ratio 3rd year - 3% 6th year - 3%+3% 12th year- 3%+3%III. Activities to build the culture of the organizational Communal Harmony and National Integration –In the Company townships at Khetri, Malanjkhand and Ghatsila as well as at other places of work, employees and their family members live in a spirit of harmony and togetherness and joyously celebrate all religious and social festivals irrespective of caste, creed, religion and language. In pursuance of Government directives based on the Judgment of the Honble Supreme Court in Visakha case, the Company has set up Committees for Prevention of Sexual Harassment of Women at Work Place at all the Units/Offices of the Company. A provision in this regard has also been incorporated (Clause 19.2) in the HCL Conduct, Discipline and Appeal Rules, 1979. Progressive Use of Hindi The Company continued its thrust on implementation of Official Language policy of the Government of India. Hindi workshops are conducted in the Units and Corporate Office at regular intervals. Hindi fortnight and Hindi Day gets celebrated in the Offices and Units of Company from 14th to 28th September 2009, under which various competitions were organized to generate interest among employees towards use of Official Language Hindi and winners get. The pg. 128
  • 129. messages of Honable Home Minister, Honble Mines Minister, and CMD circulated / read out in all Offices/Units on the occasion of Hindi Day. During the year 2009-10 the Company participated in both the half yearly meeting of Town Official Language Committee (PSUs), Kolkata held on 28/08/2009 and 29/01/2010.In-house Journal of the Company "Tamralipi" continued to be published both in Hindi and in English which were regularly distributed among the employees. The Annual Report as well as HR Policy Guide of the Company were also published in Hindi and English. "Every Day One Hindi Word scheme is operational for improving the Hindi vocabulary among the employees‖ Representation of SC/ST/OBC community employees in the Company Out of the total manpower of approx 5300, the representation of employees belonging to SC, ST and OBC communities was 16.55%, 12.47% and 12.43%.IV. Employees Participation in Management Employee participation in management has been the backbone of harmonious Industrial Relations in the Company. Successful operation of various bi-partite fora at all the three level, namely, at the Apex level, Unit level and the Shop floor level have contributed in a major way to the smooth functioning of the Company.V. Team building Culture-building activities are great for generating a feeling of belonging, but all organisations are build out of smaller teams who can get on and work together. pg. 129
  • 130. o Social activities, such as family gatherings and barbequeso Community outreach activities such as volunteering and fund-raising. Conflict Resolution Conflict management refers to the long-term management of intractable conflicts. It is the label for the variety of ways by which people handle grievances—standing up for what they consider to be right and against what they consider to be wrong. Those ways include such diverse phenomena as gossip, ridicule, lynching, terrorism, warfare, feuding, genocide, law, mediation, and avoidance. Which forms of conflict management will be used in any given situation can be somewhat predicted and explained by the social structure—or social geometry—of the case. Conflict management is often considered to be distinct from conflict resolution. In order for actual conflict to occur, there should be an expression of exclusive patterns, and tell why the conflict was expressed the way it was. Conflict is not just about simple inaptness, but is often connected to a previous issue. The latter refers to resolving the dispute to the approval of one or both parties, whereas the former concerns an ongoing process that may never have a resolution. ____________________________________Grievance Redress HCL Continuously strives to create and sustained a grievance free climate in the organization. For redressal of grievances, readily accessible machinery is available for prompt redressal of the same. pg. 130
  • 131. It is dealt by the Department of Administrative Reforms and Public Grievances Objective I. To provide an opportunity to have a direct dialogue with the supervisors for prompt redressal of their day-to-day grievances in order to promote harmonious industrial relations.II. To provide a multi-level mechanism for settlement of individual grievances.III. To settle individual grievances at the lowest level of the mechanism as far as practicable in the interest of its expenditure. Scope: Matters outside the scope of grievance procedure:- a) Collective bargaining such as wages, allowance, bonus, hours of work and other benefits etc. b) Cases of grievances arising out of discharge and dismissal, c) Individual grievance relating to punishment as a result of disciplinary action against the workman. Procedure: 1. An aggrieved workman in the first place present his grievances verbally in person to his immediate supervisor, who in turn would try to resolve the grievances within two working days. 2. If not satisfied than employee can forward the complain in a prescribed form to the head of the department. Department head discuss the problem with the HR department. The Aggrieved workman may be assisted by a co-worker,if he desires so. pg. 131
  • 132. The decision will be communicated within 10 working days.3. If workman not satisfied with the reply of the department head, he may proceed to the Chairman of ―Grievance Committee‖. The receipt of the complaint will be acknowledged by the committee comprising the Unit head(Chairman of the committee),representative of HR department (Secretary of the committee), representative of the Recognized Union and the aggrieved workman (who may be assisted by the a co- workman of his choice) will discuss and decide the issue and communicate its decision to the workman within 15 working days. Unanimous recommendations will be send to the workman. If not unanimous, the Committee will refer the grievance along with record note of discussion to the head of Project under intimation to the concerned workman.4. On receipt of the and other related papers from the Grievance committee, the Head of the project will decide the issue within 15 days from the reference of the grievance to him by the grievance to him by the Grievance committee.5. The decision of the Head of the Project will be final. pg. 132
  • 133. _______________________________________Process Flow Chart Note:-DARPG- Department of Administrative Reforms and Public Grievances. pg. 133
  • 134. Analysis of Policies Followed BY HCL/ICC Analysis Limitations Recommendations Conclusion pg. 134
  • 135. Analysis ______________________________________Positive Aspects I. HCl has sound grievance procedure system and policy II. Executive level employees are aware of their rights and duties. III. It has defined line of recruitment, selection, and establishment. IV. Follows all the rules and Indian Government acts and policies to ensure health, safety and benefits of the employee. V. Has a fair promotion, increment and incentive policy. VI. Has adopted the information technology system and also trying to minimize the manual work. ________________________________Areas for Improvement I. There is less emphasis on factors like management style, motivation of work, leadership etc. II. Less focus on developing new training programs or simulations. III. There is considerable lack of new ideas and techniques. IV. No consultancy programs are developed for employees. V. Communication gap between the HR department and the employees and also the employees and the management. VI. Lesser no. of employees than it‘s required.VII. Time office still gets operated by very few experienced employee.VIII. Every employee is not efficient to work on new technology. pg. 135
  • 136. IX. Company should have more control over Labour union to avoid frequent bandhs and strikes which hits the productivity. ___________________________________________Limitations The study was intended specially to evaluate the HR policy and its effectiveness however it lacked in following due to following reasons: I. Work is dependent on secondary data provided by HCL/ICC. II. Limited access to the information according to the topic. III. Time constrains IV. Limited time period according to the extensive study of the topic. V. Most of the management officials have to take out time from their working schedule to help trainees, which is some time not possible due to heavy work load. VI. There is whole lot information and knowledge which can be shared from the highly experienced cooperating officials however the limitation of the internship does not allow exploring it all.VII. Visiting plant frequently is restricted due to the safety reasons for the interns as well as other employees not working in plants.VIII. The information provided in the documents are also of at least 2-3 years back which does not give the exact idea of Company‘s Growth and Performance. IX. Limited information is provided on the online website giving just an idea approx present status of the Company not the exact. pg. 136
  • 137. ____________________________________Recommendations I. The Company should focus in lightening the work load so that employee can give not only quantity but the quality output. II. New technology should introduce to train the employees. III. There should be control of the Company on the Workers Union as to avoid interference in the Company work and productivity. IV. Rewards should be more focused on performance based to motivate and enhance the morale of the employee. V. There should be more strict adequate steps should be taken to decrease the absenteeism rate. VI. Manger should take out sometime to interact and understand the view of employees working under them to decrease Communication gap.VII. The target should be made of shorter period if possible and then analysis should be made to access the performance of the employee.VIII. With maintaining a service book by hand a monthly score card should also be maintained to keep a close eye on the performance. pg. 137
  • 138. _________________________________________ConclusionsIndian Copper Complex is the only Copper producing Company whichhas been Nationalized by the Government of India in March 1972 andhanded over its management and ownership to the HCL.In HCl/ICC HR plays a vital role in the improvement and maintainingthe success of the Company. It work according to the guideline theacts and policies of Government of India recommended for all factoriesand Mines and insures its employee safety, growth and benefits. Itempowers its employees of their duties and rights. It can be said thatthe implementation of the human resource is bringing a very positivechange in the working structure of the Company and enhancing itsproductivity. However the Company can introduce few techniques like6sigma, psychometric tests to motivate the employee and to monitorand enhance the performance accordingly.There is a clear satisfaction emerging on the clarity of the roles andresponsibilities, importance given to the ideas of people and believe inthe company plan and goals. Higher satisfaction level can highlymotivated the people of the organization and can make them highlyproductive which is essential in the future plan of HCL/ICC. pg. 138
  • 139. ____My Experience And Learning At HCL/ICC: A PersonalPerspectiveAs an intern I think I am very fortunate to get a chance to study in sucha renowned Organization with a superbly qualified and experiencedworkforce.It has been a very encouraging training experience at HCl. TheConducive work environment and Cooperative workforce is soinfluential that if I get a chance ever in future I would really be veryhappy to join the Company and work for it. As there is a lack ofmanpower in the organization and there is a heavy work load on theofficials still they take out time to help the new intern which reallymakes a very positive impact. The Conducive work environment andCooperative workforce is very influential.At the very beginning I spent time learning about the safety andhazards of the factory. Head of the department Mr.Hareshwar Singhtaught me about this. Then it came collecting knowledge about theproject topic which started with the interaction with the Time officewhere I understood how HCL manages and keeps each day, monthlyand annual record of all the activities of its employee during workinghours.After time office I had a regular conversation with the HR departmentto collect the knowledge about the functions and implementation of HRpolicies where I got help from Mr.Prasad, Mr.Y.V.Chandrashekhar,Mr.A.S.Vema, Mr.Harbhajan Singh and Mr.R.B.Verma and gettinginstructions and guidelines from Mr.M.R.Barik for completing theproject. pg. 139
  • 140. There is a vast pool of knowledge that can be explored if have ampleof time. All the officials at HCL are knowledgeable with a long termexperience with HCL which makes them very efficient and perfect fordoing their job. This also helped me in gaining the information relatedto my topic and also got to know the necessary information related toany organization beyond the topic as well. All the organizationalprocess gives a new dimension to the way we think.I feel myself proud that I have contributed to the organization, thoughin a very negligible way by providing a detail study on the functioningof the HR policy which I could analyze. The journey of 60 days wasamazingly helpful in expanding my knowledge towards the HRfunctions and policy.It is the one of the best professional experience that had been added aboon to my theoretical and practical knowledge. pg. 140
  • 141. Reference and Appendiceso Human resource management – VSP Raoo HCL Websiteo HCL Annual Reportso HCL internal Journals, magazines, Training manuals and Publicationso Wikipediao Mckinsey Quaterlyo S.P.Robbins and Mary Coulter - Managemento Harris and Moran – Managing Cultural Differenceso Dwyer – Trends in Global Compensationo DQ Mills, Labour – management Relationo Web based resources, search engines (Google, Yahoo, MSN), Web resources by Govt. of india pg. 141
  • 142. EMPLOYEE SATISFACTION SURVEY Please take a few minutes to complete this survey. Your specific answers will be completely anonymous, but your views, in combination with those of others, are extremely important. To insure your anonymity, {COMPANY NAME} retained an independent consultant to design the survey, receive the completed questionnaires, and interpret the findings.1. Overall, how satisfied are you with {COMPANY NAME} as an employer? (Please circle one number) Strongly Disagree Disagree Neutral Agree Strongly Agree 1 2 3 4 52. HCL/ICC s leadership and planning (Please circle one number for each statement)I have confidence in the leadership of HCL/ICC ....................... 1 ........... 2 ............ 3 ........... 4 ............5There is adequate planning of corporate objectives ................. 1 ........... 2 ............ 3 ........... 4 ............5Management does not play favorites ....................................... 1 ........... 2 ............ 3 ........... 4 ............5Management does not “say one thing and do another” ............ 1 ........... 2 ............ 3 ........... 4 ............53. Corporate Culture (Please circle one number for each statement)Quality is a top priority with HCL .............................................. 1 ........... 2 ............ 3 ........... 4 ............5Individual initiative is encouraged at HCL/ICC.......................... 1 ........... 2 ............ 3 ........... 4 ............5Nothing at HCL//ICC keeps me from doing .............................. 1 ........... 2 ............ 3 ........... 4 ............5 my best every day4. Communications (Please circle one number for each statement) pg. 142
  • 143. HCL/ICC s corporate communications are frequent enough .... 1 ........... 2 ............ 3 ........... 4 ............5I feel I can trust what HCL/ICC tells me.................................... 1 ........... 2 ............ 3 ........... 4 ............5There is adequate communication between departments ........ 1 ........... 2 ............ 3 ........... 4 ............55. Career Development (Please circle one number for each statement)I have a clearly established career path at HCL/ICC ................ 1 ........... 2 ............ 3 ........... 4 ............5I have opportunities to learn and grow ..................................... 1 ........... 2 ............ 3 ........... 4 ............5If you have been here at least six months, please respond to theseperformance appraisal itemsMy last performance appraisal accurately reflectedmy performance ...................................................................... 1 ........... 2 ............ 3 .. 4 5The performance appraisal system is fair ................................. 1 ........... 2 ............ 3 ........... 4 ............5 6. Your Role (Please circle one number for each statement)I am given enough authority to make decisions I need to make1 ........... 2 ............ 3 ........... 4 ............5I feel I am contributing to HCL/ICC,s mission ........................... 1 ........... 2 ............ 3 ........... 4 ............5I have the materials and equipment I need to do my job well ... 1 ........... 2 ............ 3 ........... 4 ............57. Recognition and Rewards (Please circle one number for each statement) If I do good work I can count on making more money ........ 1 ........... 2 ............ 3 ........... 4 ............5If I do good work I can count on being promoted...................... 1 ........... 2 ............ 3 ........... 4 ............5I feel I am valued at HCL/ICC .................................................. 1 ........... 2 ............ 3 ........... 4 ............5HCL/ICC gives enough recognition for work thats well done ... 1 ........... 2 ............ 3 ........... 4 ............5 pg. 143
  • 144. My salary is fair for my responsibilities ..................................... 1 ........... 2 ............ 3 ........... 4 ............58. Teamwork and Cooperation (Please circle one number for each statement)I feel part of a team working toward a shared goal ................... 1 ........... 2 ............ 3 ........... 4 ............5“Politics” at this company are kept to a minimum ..................... 1 ........... 2 ............ 3 ........... 4 ............59. Working Conditions (Please circle one number for each statement) I believe my job is secure ................................................... 1 ........... 2 ............ 3 ........... 4 ............5My physical working conditions are good ................................. 1 ........... 2 ............ 3 ........... 4 ............5Deadlines at HCL/ICC are realistic........................................... 1 ........... 2 ............ 3 ........... 4 ............5My workload is reasonable....................................................... 1 ........... 2 ............ 3 ........... 4 ............5I can keep a reasonable balance between work and personal life....................................................................... 1 ........... 2 ............ 3 ........... 4 ............5 10. Your Immediate Supervisor (Please circle one number for each statement) My supervisor treats me fairly............................................. 1 ........... 2 ............ 3 ........... 4 ............5My supervisor treats me with respect ....................................... 1 ........... 2 ............ 3 ........... 4 ............5My supervisor handles my work-related issues satisfactorily.... 1 ........... 2 ............ 3 ........... 4 ............5My supervisor asks me for my input to help make decisions .... 1 ........... 2 ............ 3 ........... 4 ............5My supervisor is an effective manager ..................................... 1 ........... 2 ............ 3 ........... 4 ............511. HCL/ICC s Training Program (Please circle one number for each statement)HCL/ICC provided as much initial training as I needed ............ 1 ........... 2 ............ 3 ........... 4 ............5HCL/ICC provides as much ongoing training as I need ............ 1 ........... 2 ............ 3 ........... 4 ............5 HCL/ICC provides all the information reuired in the training as I needed...1 ………..2………….3…………..4………….512. Benefits (Please circle one number for each statement)Overall, Im satisfied with HCLs benefits package ................... 1 ........... 2 ............ 3 ........... 4 ............5Specifically, Im satisfied with the:Amount of vacation .................................................................. 1 ........... 2 ............ 3 ........... 4 ............5Sick leave policy ...................................................................... 1 ........... 2 ............ 3 ........... 4 ............5 pg. 144
  • 145. Amount of health care paid for ................................................. 1 ........... 2 ............ 3 ........... 4 ............5Retirement benefits .................................................................. 1 ........... 2 ............ 3 ........... 4 ............5Allowances .............................................................................. 1 ........... 2 ............ 3 ........... 4 ............5Grievance policy 12 ........... 3 ............ 4 ........... 5Pay scale ................................................................................ 1 ........... 2 ............ 3 ........... 4 ............5Incentives ................................................................................ 1 ........... 2 ............ 3 ........... 4 ............5Increments ............................................................................... 1 ........... 2 ............ 3 ........... 4 ............5Working Environment............................................................... 1 ........... 2 ............ 3 ........... 4 ............5What, if any, changes would you like made to HCL/ICC s benefits package?13. How long do you plan to continue your career with HCL/ICC? Less than a year One to two years Two to five years More than five years Dont Know     14. Would you recommend employment at HCL/ICC to a friend? Definitely not Probably not Maybe Probably would Definitely would     15. What can HCL/ICC do to increase your satisfaction as an employee?__________________________________________________________________________ ____________________________________________________________________________________________________ __________________________ The following questions are for analytic purposes only. They will not be used to try to identify any individual. However, if you feel uncomfortable about answering any of them do not do so. Whether or not you leave any questions blank, please return your questionnaire. pg. 145
  • 146. 16. How long have you worked for HCL/ICC 20. What is your total before-tax annual NAME}? income from this job, including overtime and bonuses? Less than one year .................................  One year to less than two years .............  Less than $20,000 .................................  Two years to less than five years ...........  $20,000 to less than $30,000 .................  Five years to less than ten years ............  $30,000 to less than $50,000 .................  Ten years or more ..................................  $50,000 to less than $75,000 .................  $75,000 or more ....................................  21. In which department do you work? Time Office ............................................  Safety .................................................... 17. What is your age? HR(works) ..............................................  HR(admin.) ............................................  Under 21 ................................................  Plants ....................................................  21 to 34 ..................................................  Research and development ...................  35 to 44 ..................................................  45 to 54 ..................................................  55 or older .............................................. 18. What is your sex? Male .......................................................  Female ...................................................  19.Which of the following best describes your role in the organization? First-level supervisor ..............................  Manager/supervisor higher than first level (including senior management positions) ...............................................................  Not a manager or supervisor .................. 
  • 147. Trade Union Name of the trade Union in the Organization which bridges the gap in between the Company and the organization.1. ICC Workers Union :Registered, recognized by HCL/ICC affiliated to AITUC.2. Moubhandar Mazdoor Union :Registered.3. Ghatshila Copper Mazdoor Sangh: Affiliated to BMS.4. Singbhoom Industrial Mazdoor Sangh: Registered, unrecognized-affiliated to CITU.5. Jharkhand Copper Mazdoor Union: registered, affiliated to JMM Note:- All India Trade Union Congress (AITUC) Indian National Trade Union Congress (INTUC) Bhartiya Mazdoor Sangh (BMS) 147 | P a g e