HR policies in HCL by monika ndim


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{ 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.

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HR policies in HCL by monika ndim

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 12. SUMMER INTERNSHIP INTRODUCTIONA. Objective of The StudyB. ScopeC. Methodology pg. 12
  13. 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. 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. 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. 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. 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. 18. COMPANY PROFILE An Introduction to HCL―Our Core is Ore” pg. 18
  19. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 47. SWOT Analysis By: Monika pg. 47
  48. 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. 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. 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. 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. 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. 53. World Copper Consumption pg. 53
  54. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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