PROJECT REPORT ON

Study of Associate Relations

at Honda Cars India Limited

SUBMITTED BY:

Abhishek Paliwal
14DM011
PGDM-HR

SUBMITTED TO:

Mr. Navin Shrivastava

Asst. Professor & Programme Coordinator (PGDM)
 CONTENTS

ACKNOWLEDGMENTS……………………………………………………………………….5

EXECUTIVE SUMMARY ……………………………………………………………………..6

INTRODUCTION ABOUT THE COMPANY…………………………………………………7

HONDA’S PHILOSPOHY.…………………………………………………………………….10

SWOT ANALYSIS…….………………………………………………………………….……16

WORKING PHILOSPOHY…………………………………………………….……….………18

LITERATURE REVIEW………………...……………………………………….…………..…21

INDUSTRIAL RELATIONS AT HCIL.…………………………………………….……….....22

RECRUITMENT & SELECTION…………………………………………………….………..28

ABOUT EPF…………………………………………………………………………………….31

ABOUT ESIC…………………………………………………………………………………...37

RESULTS & CONCLUSIONS……………………………………………………….....………42

LEARNING & SUGGESTIONS…………..………………………………………………....…46

REFERENCES……………………………………………………………………………....…..48
 LETTER OF TRANSMITTAL
Birla Institute of Management Technology,
Plot no.5, Knowledge Park –II, Institutional Area,
Greater Noida (NCR), U.P. – 201306, INDIA
Date:

Mr. Gaurav Chauhan,

Honda Cars India Limited,
Plot No. A-1, Sector 40/ 41, Surajpur-Kasna Road,
Greater Noida, Uttar Pradesh 201306
Ph. No. : 0120 234 1313

Dear Sir,

RE: Summer Project Report

Attached herewith is a copy of my summer- project report “Study of Associate Relations in

Honda Cars India Limited” which I am submitting in order to mark the completion of a 8 week
summer project at your organization. This report was prepared by me using the best of practices
and summarizes the work performed on the project and is being submitted in partial fulfillment
of the requirements for award of diploma.

I would like to mention that the overall experience with the organization was very good, and
helped me to know how work is carried out in real practice with the help of your esteemed
organization. I feel honored that I got an opportunity to work with Honda Cars India Limited, a
company of great repute. I hope I did justice to the project and added some value to the
organization. Suggestions/comments would be appreciated.

Yours Truly,

Abhishek Paliwal
 CERTIFICATE

This is to certify that Mr. Abhishek Paliwal Roll No. 14DM011 a student of PGDM (2014-2016)
has worked on a summer project titled "Study of Associate Relations in Honda Cars India Limited"
at “Honda Cars India Limited”, after Trimester-III in partial fulfilment of the requirement for the
Post Graduate Diploma in Management programme. This is his original work to the best of my
knowledge.

Date: ____________ Signature ______________

Professor Navin Shrivastava

Birla Institute of Management Technology

 ACKNOWLEDGEMENT

I would like to gratefully acknowledge the contribution of all the people who took active part and
provided valuable support during the course of this project. To begin with, I would like to offer
my sincere thanks to Mr. Vivek Chouhan, Senior Executive, Associate Relations of HCIL, for his
valuable guidance and also for sharing his insight. Without his support and patience during the
study, the project could not have been accomplished.

I would now like to extend my gratitude for Gaurav San, Yashpal San, Deepak San of the Associate
Relations and Industrial Relations teams of HCIL, who helped me understand the various aspects
of business in the best possible way.

My heartfelt gratitude also goes to the entire IR team at Honda Cars India Limited for their
cooperation and willingness to answer all my queries, and provide valuable assistance.

I also sincerely thank Professor Navin Shrivastava, my faculty mentor at BIMTECH, who provided
valuable suggestions, shared his rich experience, and helped me script the exact requisites of the
project.

I would also like to seize this opportunity to thank all the people who directly or indirectly helped
me in the completion of my project.
EXECUTIVE SUMMARY :

The role of associate relations in an organization varies from providing work environment and
policy framework for ensuring continuous employee motivation to harmonising the mutual needs
of management and the employees. It involves taking care of the entire employment cycle of the
employee- from hiring to clearance.

The focus of my study at Honda Cars India Limited was to observe the working of Time Office,
which dealt with attendance, leaves, salary, ESI and EPF related issues of the employees.
Employees are informed of their roles and responsibilities towards the company, the company’s
vision, mission and working philosophies. Also they are informed of the benefits they stand to
gain through various government policies.

It is evident from numerous researches that a motivated and satisfied employee not only works
more efficiently but also helps in creating a positive image of the company in the society,
through word of mouth while his interaction with other people. This is one of the reasons why
companies not only focus on keeping their current employees satisfied but also work on ensuring
that when their employees leave their organization, they do so on a happy note.

The major part of my study at Honda Cars India Ltd. rotated around the post-employment
grievance resolving of the ex-employees, which were regarding the PF withdrawal. Employees
were required to submit form 19 and 10C, which after being processed by the staff at Time
Office is sent to the EPF office in Delhi.

While there was a high rate of inflow of such forms in the Time Office, the rate of processing
them further and sending to the EPF office was lagging. This led to piling up of these forms and
disrupting the cycle. So, it was required not only to clear the backlog of such forms, but also it
was needed to devise a system to ensure non repetition of such scenario.
 INTRODUCTION

ABOUT THE COMPANY:

Honda Cars India Ltd (HCIL) is a subsidiary of the Honda of Japan for the production, marketing
and export of passenger cars in India. In August, 2012, Honda bought out Usha International's
entire 3.16 percent stake for ₹1.8 billion in the joint venture. The company officially changed its
name to Honda Cars India Ltd (HCIL) and became a 100% subsidiary of Honda.

It operates production facilities at Greater Noida in Uttar Pradesh and at Bhiwadi in Rajasthan.
The company's total investment in its production facilities in India as of 2010 was over ₹16.2
billion.

HCIL's first manufacturing unit at Greater Noida commenced operations in 1997. Setup at an initial
investment of over ₹4.5 billion, the plant is spread over 150 acres (0.61 km2). The initial capacity
of the plant was 30,000 cars per annum, which was thereafter increased to 50,000 cars on a two-
shift basis. The capacity has further been enhanced to 100,000 units annually as of 2008. This
expansion led to an increase in the covered area in the plant from 107,000 m² to over 130,000 m².

The company invested ₹7.8 billion in Bhiwadi for its second production plant with an annual
production capacity of 50,000 units. It operates under the ISO 9001 standard for quality
management and ISO 14001 for environment management.

Honda setup its Third plant in India at Tapukara in Alwar District of Rajasthan, spread over 450
acres with an investment of ₹3526 crores.
 HONDA’S GLOBAL VISION

Soichiro’s vision was international in character .His desire was to lead the world in technology ,
& make a significant contribution to the creation of a better society .As, result most of the products
that Honda developed started out by making a difference whether it was the CVCC engines in the
sixties or the solar powered car of the nineties ,they all sought to challenge & overcome
conventional wisdom.

GLOBAL OPERATIONS :-

HONDA has divided the globe into the following major parts :

 JAPAN
 NORTH ,CENTRAL AMERICA
 SOUTH AMERICA
 EUROPE ,MIDDLE EAST ,AFRICA
 ASIA ,OCEANIA
 CHINA
JAPAN

The Hub of Global Honda.

NORTH ,CENTRAL AMERICA

Serving Honda’s largest market, our North American operations play a key role in all.

SOUTH AMERICA

Following resounding success in the Brazilian motorcycle market, Honda is increasingly at home
in South America.

EUROPE, MIDDLE EAST , AFRICA

Having begun localization early, Honda now exports automobile from Europe to the US
& Japan
 ASIA, OCEANIA

Strengthening the mutual supplementation network to better serve important, growing market.

CHINA

Regional operation manages growth in motorcycles, automobiles & power product

Basic Principles
 Respect for the individual.
 The Three Joys (buying, selling and creating).
We at Honda believe that each person working in or coming in touch with our Company, directly
or through our products, should share a sense of joy through that experience. This feeling is
expressed in what we call "The Three Joys"
Our Goal is to provide joy through our Business:
The Joy of Buying: For those who buy our Products
The Joy of Selling: Engage in selling our products and services
The Joy of Creating: Involved in business of creating our Products
Company Principle (Mission Statement)
Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality,
yet at a reasonable price for worldwide customer satisfaction.
Management Policies
 Proceed always with ambition and youthfulness.
 Respect sound theory, develop fresh ideas, and make the most effective use of time.
 Enjoy work and encourage open communication.
 Strive constantly for a harmonious flow of work.
 Be ever mindful of the value of research and endeavor.
HONDA’S PHILOSOPHY

The Honda Philosophy expressed in this illustration shows the Company Principle, Management
Policies and the ‘Honda Way’ based upon the fundamental beliefs of ‘Respect for the Individual’
and ‘The Three Joys’.

COMPANY
COMPANY
PRINCIPLES
PRINCIPLES

THE THREE JOYS

RESPECT FOR THE INDIVIDUAL

FUNDAMENTAL BELIEFS

The center of Honda’s corporate philosophy is the Company Principle which was written in 1956.
Underlying the company principle are two fundamental beliefs:

1. THE THREE JOYS: Each person coming in touch with Honda should share a sense of
joy through that experience. This feeling is expressed well in what is called in Honda as
“The Three Joys”. The goal is to provide joy through business for those who buy, sell or
are involved in the creation of its products.

A. JOY OF BUYING:

i. Achieved by providing products and services that exceed the needs and
expectations of each customer.

ii. It is essentially establishment of relationship with customers initiated

through sales and service experience.
B. JOY OF CREATING:

i. Occurs when Honda associates involved in the creation of products

recognize a sense of joy in customers and dealers

ii. By creating quality products which exceed expectations.

iii. All associates experience pride in a job well done.

C. JOY OF SELLING:

i. Occurs when sales and service associates develop relationships with

customers based on mutual trust.

ii. Associates and dealers experience pride in associating with Honda and
representing Honda Products to customers.
2. RESPECT FOR ALL INDIVIDUAL: Each individual is unique and has the capacity to
think reason and create, and the ability to dream. It recognizes the following core concepts:

A. INITIATIVE

i. Not to be bound by preconceived notions.

ii. Think creatively and act on your initiative and judgment.

iii. Take responsibility for the results of your action.

B. EQUALITY

i. Recognize and respect individual differences.

ii. Treat each other fairly.

iii. Create equal opportunities for each individual.

iv. An individual’s race, age, sex, religion, national origin, educational

background, socio-economic status should not determine his
opportunities.

C. TRUST

i. Relationship among Honda associates should be based on mutual trust.

ii. Trust is created by recognizing each other as individuals, helping others,

accepting help from others and sharing our knowledge and making
sincere efforts to fulfill our responsibilities.
 Respect for the
Individual
Each individual is
unique,
independent and
possesses
initiative

Initiative Equality Trust

All associates are All associates The

encouraged to are treated relationship
take initiative fairly among
while and equal associates at
understanding opportunities HSCI to
that they must given to each be based on
take responsibility individual. mutual trust
for the results of
those actions
THE HONDA COMPANY PRINCIPLE

The Honda Company Principle states the ultimate goal of Honda’s global activities – the reason
why Honda conducts its business.

“Maintaining a global viewpoint, we are dedicated to supplying products of highest quality yet at
a reasonable price for World-wide customer satisfaction.”
 SWOT ANALYSIS

Honda motor company is not just an average Japanese car manufacturer. Originally known for
motorcycles, Honda has managed to elude the dominate keiretsu system in Japan and become one
of the dominant automobile manufactures in the world

STRENGTHS

Honda has a reputation for producing high quality products from motorcycles to lawn mowers.
 They are the largest manufacturer of motorcycles in the world.
 Honda has won many awards for initial quality and customer satisfaction.
 Their research has afforded them competitiveness in innovative products.
 They are pioneer in engineering low emissions internal combustion and hybrid
technology.
 Honda is the only other manufacturer outside of Mitsubishi to branch out into many
other areas outside of automobiles, like motorcycles, scooters, power equipments
(generators), Robotics (ASIMO).

WEAKNESSES

 Their prices are higher for non-luxury vehicles than comparable models by other
manufacturers.
 Their vehicles also have a reputation for being underpowered.
 Due to the latest technology being used in Honda products it is difficult to keep the
prices low.
OPPORTUNITIES

 To continue progressing low emission vehicles and alternative power sources.

 Another area of opportunity would be developing nations like China and India. These are large
markets, and cheap dependable transportation would be a hot seller.

THREATS

 Too many competitors in automotive industry.

 Expanding market size of compact cars ( currently it is around 76% )
 Regaining the lead of low emissions is a risky proposition as other companies are coming out
with new and cost effective ideas of producing low emission vehicles.
 Increasing steel prices will make it difficult for the companies to continue the current pricing
strategy.
WORKING PHILOSOPHIES AT HONDA :

3 - S Principle

At Honda, we believe that to be able to do our jobs

productively and efficiently, time has to be properly utilized.
This can be done based on the 3 elements of: -
Simplicity - focussing on important issues.

Concentration - focussing resources to reach targets.

Speed - rapid implementation.

 Sandan Hasso

This is the basic management principle at Honda involving Three

steps:

1 To find out how to do our job to meet future requirements.

2. To analyze the current status based on the "Three Reality

Principle", taking into account future impact of the action and the
action being taken by other departments.

3 To make an action plan mentioning targets in terms of 'when', 'how

much', and 'who'.
 KAIZEN KAI ZEN

KAIZEN as originally defined in

the book of: "KAIZEN, the Key to Change Good
Japan's Competitive Success", by
Mr. Masaaki Imai, is:
Change for the Better
KAIZEN means improvement. Moreover, KAIZEN means
continuing improvement in personal life, home life, social life,
and working life. When applied to the workplace KAIZEN means
continuing improvement involving everyone - managers and
workers alike.
KAIZEN is a Japanese word meaning gradual and orderly,
continuous improvement. The KAIZEN business strategy
involves everyone in an organization working together to make
improvements 'without large capital investments'.
LITERATURE REVIEW :

As many HR professionals will know, we’re well and truly in the era of the contractor.
Not only are these professionals in increasingly high demand, with the expansion of the
flexible labour environment this career route is also becoming an ever-more popular
choice for individuals. As the percentage of staff operating as a contractor grows, HR
teams face a huge challenge; motivating a temporary workforce.

While employee engagement is perhaps ‘simpler’ for permanent staff, ensuring

contracting teams do not feel left out of the equation is much more difficult. There’s the
perception that temp audiences don’t have access to the same incentive schemes as the
rest of the workforce, from access to benefits through to the security of monthly salary
payments. In order to really motivate this flexible workforce to ensure they are
performing to their best abilities, HR professionals could benefit from considering these
individuals in a similar light to permanent employees. However, in doing so they walk a
fine line between protecting the business from contractors claiming employment rights
whilst treating them as a valuable and flexible resource.

It’s important to ensure that temporary professionals are embedded into the company in a
similar manner to permanent employees, after all, they are representatives of the business
too. Temporary professionals must have access to business on-boarding procedures to
enable them to understand the company culture and how the business operates. This
element is often overlooked in bringing temporary workers on board due to the
perception that they can easily move from business to business. But, in order to really
include them in the organisation and give them the best starting point, they will need this
initial level of orientation.
 INDUSTRIAL RELATIONS AT HCIL ADMIN DIVISION

 Total Manpower (Approx. 4000 numbers);

 Line Associates = 910

 Apprentices = 1056

 Temporary = 850

 Associates = 1350
Achieving desired level of Productivity and Quality.

 Average overall Absenteeism in Asso (M) category

83 Ki – 4.9% (well below the Industry Norm of 10~12%).

 Participation in Company sponsored activities

e.g -Festivals & Company Events, Foundation Day, Vishwakarma Pooja, Ramlila, CSR activities,
NHC, New Honda Magzines , Canteen Committee & Transport Committee etc.

 Line Associates Union (Internal)

- Formed in Sep. 2003, (Unionised environment still in infancy stage).
- Guidelines for Union functioning implemented
- First 3-yr. Long Term Agreement signed with Union in 2003, valid up to June 2006. Subsequent
agreements signed for the same time duration.
THEME & FUNCTIONS - ASSOCIATE RELATIONS ADMIN DIVISION

TO FASCILITATE / PROVIDE WORK ENVIRONMENT & POLICY

FRAMEWORK IN THE COMPANY FOR CONTINUED
THEME
MOTIVATION OF LINE ASSOCIATES THROUGH
HARMONISING MUTUAL NEEDS

1. To ensure harmonious relationship with the Union

& Asso (M) mass, ensuring compliance to Labour
Laws
2. To hire Asso (M) as per plan
3. To set up systems for continuous behavioural
FUNCTIONS
Training & Development
4. To set up transparent Performance Appraisal
system
5. To continuously / proactively work for enhancing
Asso (M) Satisfaction level (ESS)
6. Others- Security/Clinic services/Time Office
SECTION WISE JOBS - INDUSTRIAL RELATIONS ADMIN DIVISION

SUB- SECTION THEME FUNCTIONS

TO PROVIDE TIMELY, QUALITATIVE Asso (M) • Recruitment / Selection
Recruitment / MANPOWER & NURTURE / DEVELOP THEM IN • Induction
LINE WITH HONDA-WAY OF WORKING THROUGH
Development BEHAVIOURAL TRAINING.
• Behavioural Trainings
• Performance Appraisal
• ISO Audit
• Support in data mgmt.

TO PROVIDE TIMELY, TROUBLE FREE SERVICES • Attendance mgmt.

Time Office / w.r.t. ATTENDANCE CONTROL AND MONITORING • Salary / Wage administration
Compliance SALARY / WAGE PREPARATIONS ETC. TO ALL
• PF / ESI
ASSOCIATES / Asso (M) AND TO ENSURE
COMPLIANCE OF LABOUR LAWS & COMPANY • Contract labour
POLICIES. • Compliance of labour laws
• Full & final payments
• Internal Audit
• HCG Audit

TO MAINTAIN HARMONIOUS WORK ENVIRONMENT • Union management

Harmony / FOR MOTIVATING THE LINE ASSOCIATES TO • Employee Satisfaction Survey
Welfare CONTRIBUTE IN THE GROWTH OF HSCI, BY • Maintaining Discipline /
IMPLEMENTING SUSTAINABLE POLICIES, Absenteeism Control
SYSTEMS AND WELFARE MEASURES. • Welfare measures e.g. GPAI /
Mediclaim, Sports / Cultural
events, Community
Development
& Grievance Redressal
• Liaison with Govt. / Society
• Court cases
SECTION WISE JOBS - SECURITY ADMIN DIVISION

SUB- SECTION THEME FUNCTIONS

TO PROVIDE A SECURE ENVIRONMENT • Deployment of Security Guards
Security FOR ASSOCIATES AND COMPANY • Facilitate movement of material
PROPERTY, BY PROACTIVELY IDENTIFYING
• Control over Company Property
POTENTIAL THREAT AREAS AND TAKING
COUNTER MEASURES • Prevent Frauds
• Prevent Accidents
• Intelligence Gathering
• Maintain Discipline.

TO ASSURE CLEAN AND HYGIENIC •

Housekeeping WORKING ENVIRONMENT WITHIN THE
Cleanliness of the entire area - both
Indoors & Outdoors
& COMPANY WORK AREA AND CLEAN AND • Keep work place Clean and Hygienic
GREEN SURROUNDINGS. • Create green surroundings by planting
Horticulture trees / flowers
• Maintain gardens & lawns
SECTION WISE JOBS - CLINIC ADMIN DIVISION

SUB- SECTION THEME FUNCTIONS

TO ASSIST IN ENSURING HEALTHY WORK • Enhancing Productivity by Control of

Clinic Services ENVIRONMENT AND PROVIDE FIRST AID IN Absenteeism through preventive
medicine
CASE OF ACCIDENTS / SICKNESSES
• Management and Control of Injury and
Sickness on Duty Cases
• Emergency Medical Crisis Management
• Management Of Group Mediclaim
Policy
• Management of Canteen Hygiene
APPROACH TO INDUSTRIAL HARMONY AT HCIL ADMIN DIVISION

• Pro-active approach for handling IR situations.

• Reformative rather than Punitive approach for

Human related issues.

• Fair, Firm and Transparent dealings with

- Associates

- Society

- Statutory Regulations / Bodies.

 RECRUTMENT AND SELECTION PROCESS IN IR DEPARTMENT

The very first step in translation of likely job vacancies & information about he nature of

these jobs into set of objectives or targets that specify the number and the type of applicants to be

contacted. This planning in HSCI is done by various departments e.g. Quality Engineering,

Welding vehicle quality, assembly frame etc. as their need arises and their requirement is being

told to the IR (Industrial Relations) Department. Thus, a date is settled till when the recruitment &

selection for the required for the required number of Las will be done.

HSIC then according to requirement uses its two external sources of recruitment. These are

local dailies and campus recruitment and the internal employee referral scheme. In campus they

conduct a written test and one round of interview is taken.

The resumes collected are then screened according to the set criteria. Criteria are that the

candidate should be

(i) An ITI in either of following trades:

Fitter, Electrician, Welder, Motor Vehicle Mechanic

(ii) Age from 16 to 25 for temporary & apprentices & 16 to 30.4 for permanents.

The candidates found eligible according to the criteria are called up by informing them

through phone for the written test & the list of those called up is prepared in order to cross check

on the date of written test. The written test consists of questions of General Knowledge, General
Science and Math. Two sets of questions papers are formed with same questions but different

sequence of question to do away with any cheating. On the day of test, candidates are given a form

called “APPLICATION FOR EMPLOYMENT” which help the organization to conduct the

interviews as it consists of all details about the candidate. The answer sheets are checked and the

marks are rewarded. 50 percent marks are required to clear the test.

Candidates, who secure 50 and above percentage in written test are called for interview by

informing them through phone.

Candidates who clear the preliminary interview and those who clear the final interview are

called for joining on a particular date. The preliminary interview is taken by representatives from

works division and IR whereas the final interview is taken by a manager level person from

department from which the requirement arose and the HOD of that department.

The joining process is a lengthy one. Firstly, verification of documents & joining

formalities are done. Secondly, induction program is done. This includes HONDA induction,

Safety induction & manufacturing induction. Thereafter, process of medical examination starts

which is to be completed before lapse of 15 days from joining.

Last step is the follow up where the IR department sends the documents for antecedent

verification of candidates of permanent category within 15 days of joining. The documents are

sent to agency named “PROBE” for verification.

 ITI CAMPUS INTERVIEWS

SOURCING OF CANDIDATES
HSCI DATABANK

NEWSPAPER ADVERTISEMENT

BASED ON THEIR SCREENING CRITERIA

SCREENING OF APPLICANTS

QUESTION WILL CONSIST OF G.K.,

WRITTEN TEST TO SCREEN THE GENERAL SCIENCE AND MATHS
CANDIDATES

PRELIMINARY INTERVIEWS PANEL CONSISTING OF

(ONLY ONE LEVEL OF INTERVIEW TO BE CONDUCTED
REPRESENTATIVES FROM WORK
IN CASE OF OUT STATION ITI CAMPUSES) DIVISION AND IR

PANEL CONSISTING OF REP. FROM

FINAL INTERVIEW RESPECTIVE DIVISION(MANAGER LEVEL
OR ABOVE) ALONG WITH HOD IR

VERIFICATION OF DOCUMENTS
JOINING

INDUCTION PROGRAM

MEDICAL EXAMINETION

FOLLOW UP DOCUMENTS TO BE SENT FOR

ENTECEDENT VERIFICATION OF
CANDIDATES (PERMANENT CATEGORY)
 Employees' Provident Fund Organisation, India

The Employees’ Provident Fund came into existence with the promulgation of the Employees’
Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees’
Provident Funds Act, 1952. It is now referred as the Employees’ Provident Funds &
Miscellaneous Provisions Act, 1952 which extends to the whole of India except Jammu and
Kashmir. The Employees' Provident Funds Bill was introduced in the Parliament as Bill
Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for
employees in factories and other establishments. Since its enactment in 1952, the Act has been
amended 15 times.

The Act and Schemes framed there under are administered by a tri-partite Board known as
the Central Board of Trustees, Employees' Provident Fund, consisting of representatives of :-

a. Government (Both Central and State) - 15 representatives

b. Employers, - 10 representatives
c. Employees - 10 representatives

The Board administers a contributory provident fund, pension scheme and an insurance scheme
for the workforce engaged in the organized sector in India. It is one of the world’s largest
organizations in terms of clientele and the volume of financial transactions undertaken by it. The
Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 123
locations across the country. The EPFO is under the administrative control of Ministry of Labour
and Employment, Government of India.
 The Board operates three schemes viz. :-
a. The Employees' Provident Funds Scheme 1952 (EPF)
b. The Employees' Pension Scheme 1995 (EPS)
c. The Employees' Deposit Linked Insurance Scheme 1976 (EDLI)

The benefits admissible under each of the three schemes and the financing of the three schemes is
indicated in the table below : –

Employees’ Deposit
Employees’ Provident Employees' Pension Linked Insurance
Fund Scheme, 1952 Scheme, 1995 Scheme, 1976

The benefit provided in

Monthly benefits for case of death of an
superannuation/ retirement, employee who was
disability, survivor, widow member of the scheme at
(er), children. the time of the death,

Amount of pension based The family will get 20

Accumulation plus on average salary during the times of the average
interest upon retirement, preceding 12 months from wages of the last 12
resignation , death. the date of exit and total months of the member.
years of employment.
Partial withdrawals According to the revised
allowed for specific Minimum pension on scheme, maximum
expenses such as house disablement. benefits under the
construction, higher scheme will now be ₹
education, marriage, Past service benefit to 1,30,000/- , as the wage
Benefits:
illness etc. participants of ceiling upto which
 erstwhileFamily Pension contribution can be paid
Scheme, 1971. under the scheme is ₹
15,000/-.

Any person joining an establishment, to which the EPF & MP Act applies, shall
compulsorily submit a declaration to his/her employer, whether he/she is already
a member of Provident Fund (Form 11). This will ensure continuity of service
and consequential benefits.

In case he/she was a member he/she shall also apply in Form 13 for getting the
Declaration:
old account details and the fund balance to the new account.

There is a common Form

for all the three Schemes.
Form 2 (R) The
nominations in case of
EPF Scheme are also
applicable for the EDLI
Scheme. Member has to give the
names of Spouse and all
Member having family children in the prescribed
can nominate any one or Form.
more of the family
members as defined under In case the member has no
the Para 2 (f) of the EPF family, one person can be
Scheme, 1952. nominated.

Member not having any However, such nomination The nomination under
family member as defined will become invalid once the EPF Scheme will be
in the said Para can the member acquires a applicable for the EDLI
Nomination:
nominate any other family. Scheme also.
 person, but the
nomination will become
invalid in case of the
member acquiring family.

For final settlement by

member: Form 19

For Transfer of old

account to the new
one:Form 13

For Withdrawal in certain

cases: Form 31

For financing LIC

Policy:Form 14 For Monthly Pension: Form For claiming Insurance
10D Benefit by a nominee/
For final settlement in beneficiary in case of
favour of nominee/ For Withdrawal Benefit and member’s death while in
Claim
beneficiary of a deceased Scheme Certificate: Form service: Form 5IF
Forms:
member: Form 20 10C

NOTEWORTHY FEATURES

A member can view online the status of his Claim submitted to PF Office).

An employee working for an establishment can check whether the establishment in which
he/she is working is covered under the EPF & MP ACT 1952.

He/she can also check whether his/her PF deductions are deposited by the employer. This
information is available from financial year 2009-10 onwards. Facility is now available for
online transfer of member accounts in the event of change of job / location through On-line
Transfer of Claims Portal (OTCP).

The pensioners’ portal has also been launched on EPFO website where the pensioner on
providing his/her PPO number and date of birth can view details of pensions disbursed to
him/her. The pensioner’s details of pension are available from the financial year 2010 onwards.

A member can register himself/herself on the Member Portal and view and download his/her
e-passbook having transaction wise details in PF Account. Bulk SMS and email service for
informing members regarding credits and debits of their provident fund accounts and for
providing other information to them is now operational.

From the Financial Year 2012-13 EPFO had launched a facility of Electronic Challan cum
Return(ECR). ECR is an on-line portal where establishments upload statutory returns.

The establishments can now remit EPF dues electronically even if they do not have their
accounts with the SBI. This facility is currently available to establishment having accounts in
any one of the 58 banks through which the payments can now be made electronically.

On 16.10.2014, the Hon’ble Prime Minister of India formally launched the Universal Account
Number (UAN) for facilitating portability of member account. UAN has been allotted to all
the current contributing members, which stood at 4.19 crores as on 21.11.2014. These UANs
has been disseminated to the respective employers through OTCP portal. All the new members
joining the funds in the first time are also allotted Universal Account Number. The employer
can log on to the OTCP portal to collect the UAN allotted to the employees and distribute the
same to the person concerned. KYC seeding of these UANs are currently under ways. EPFO
has made it mandatory to all the establishments to provide bank account numbers of all the
members joining the funds. EPFO is also collecting Aadhaar and PAN as part of KYC details
as this will enable EPFO in future to provide services directly to the members without the
intermediation of the employers.
The establishments can now register on-line for getting a EPF registration number (EPF Code
number) the On-line Registration of Establishments portal (OLRE).The establishments get
the registration number immediately on successful submission of on-line application.

The Hon’ble Prime Minister also inaugurated the Shram Sewa Portal on 16.10.2014. The
Shram Sewa Portal intends to make the process of inspection of establishments rule based,
periodic and by minimizing the use of discretion of inspecting officers.

The contribution rates (% of wages) for financing and administering the benefits under the EPF
& MP Act are given below:-

CONTRIBUTION ADMINISTRATION
ACCOUNTS ACCOUNTS

EPF EPS EDLI EPF EDLI TOTAL

EMPLOYEE 12 0 0 0 0 12

EMPLOYER 3.67 8.33 0.5 1.10 0.01 13.61

TOTAL 15.67 8.33 0.5 1.10 0.01 25.61

Thus employers and employees both contribute @ 12% of wages in Contribution accounts.
Further, the employers also contribute towards administration of the benefits under the Act.
ESIC – Employees’ State Insurance Corporation

The promulgation of Employees' State Insurance Act, 1948(ESI Act), by the Parliament was the
first major legislation on social Security for workers in independent India. It was a time when the
industry was still in a nascent stage and the country was heavily dependent on an assortment of
imported goods from the developed or fast developing countries. The deployment of manpower
in manufacturing processes was limited to a few select industries such as jute, textile, chemicals
etc. The legislation on creation and development of a fool proof multi-dimensional Social
Security system, when the country's economy was in a very fledgling state was obviously a
remarkable gesture towards the socio economic amelioration of a workface though limited in
number and geographic distribution. India, notwithstanding, thus, took the lead in providing
organized social protection to the working class through statutory provisions.

The ESI Act 1948, encompasses certain health related eventualities that the workers are
generally exposed to; such as sickness, maternity, temporary or permanent disablement,
Occupational disease or death due to employment injury, resulting in loss of wages or earning
capacity-total or partial. Social security provision made in the Act to counterbalance or negate
the resulting physical or financial distress in such contingencies, are thus, aimed at upholding
human dignity in times of crises through protection from deprivation, destitution and social
degradation while enabling the society the retention and continuity of a socially useful and
productive manpower.

Benefits
The section 46 of the Act envisages following six social security benefits :-

(a) Medical Benefit : Full medical care is provided to an Insured person and his family members
from the day he enters insurable employment. There is no ceiling on expenditure on the
treatment of an Insured Person or his family member. Medical care is also provided to retired
and permanently disabled insured persons and their spouses on payment of a token annual
premium of Rs.120/- .
1. System of Treatment
2. Scale of Medical Benefit
3. Benefits to Retired IPs
4. Administration of Medical Benefit in a State
5. Domiciliary treatment
6. Specialist consultation
7. In-Patient treatment
8. Imaging Services
9. Artificial Limbs & Aids
10. Special Provisions
11. Reimbursement
(b) Sickness Benefit(SB) : Sickness Benefit in the form of cash compensation at the rate of 70
per cent of wages is payable to insured workers during the periods of certified sickness for a
maximum of 91 days in a year. In order to qualify for sickness benefit the insured worker is
required to contribute for 78 days in a contribution period of 6 months.

1. Extended Sickness Benefit(ESB) : SB extendable upto two years in the case of 34 malignant and
long-term diseases at an enhanced rate of 80 per cent of wages.
2. Enhanced Sickness Benefit : Enhanced Sickness Benefit equal to full wage is payable to insured
persons undergoing sterilization for 7 days/14 days for male and female workers respectively.
(c) Maternity Benefit (MB) : Maternity Benefit for confinement/pregnancy is payable for three
months, which is extendable by further one month on medical advice at the rate of full wage
subject to contribution. for 70 days in the preceding year.
(d) Disablement Benefit
1. Temporary disablement benefit (TDB) : From day one of entering insurable employment &
irrespective of having paid any contribution in case of employment injury. Temporary
Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.
2. Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form
of monthly payment depending upon the extent of loss of earning capacity as certified by a
Medical Board
(e) Dependants' Benefit(DB) : DB paid at the rate of 90% of wage in the form of monthly
payment to the dependants of a deceased Insured person in cases where death occurs due to
employment injury or occupational hazards.

(f) Other Benefits :

Funeral Expenses : An amount of Rs.10,000/- is payable to the dependents or to the person who
performs last rites from day one of entering insurable employment.
Confinement Expenses : An Insured Women or an I.P.in respect of his wife in case confinement
occurs at a place where necessary medical facilities under ESI Scheme are not available.

In addition, the scheme also provides some other need based benefits to insured workers.

Vocational Rehabilitation :To permanently disabled Insured Person for undergoing VR

Training at VRS.

Physical Rehabilitation : In case of physical disablement due to employment injury.

Old Age Medical Care :For Insured Person retiring on attaining the age of superannuation or
under VRS/ERS and person having to leave service due to permanent disability insured person &
spouse on payment of Rs. 120/- per annum.
 Rajiv Gandhi Shramik Kalyan Yojana : This scheme of Unemployment allowance was
introduced w.e.f. 01-04-2005. An Insured Person who become unemployed after being insured
three or more years, due to closure of factory/establishment, retrenchment or permanent
invalidity are entitled to :-

 Unemployment Allowance equal to 50% of wage for a maximum period of upto one year.
 Medical care for self and family from ESI Hospitals/Dispensaries during the period IP receives
unemployment allowance.
 Vocational Training provided for upgrading skills - Expenditure on fee/travelling allowance
borne by ESIC.
Incentive to employers in the Private Sector for providing regular employment to the
persons with disability :

 Minimum wage limit for Physically Disabled Persons for availing ESIC Benefits is 25,000/-.
 Employerss' contribution is paid by the Central Government for 3 years.
Benefits & Contributory Conditions :
An interesting feature of the ESI Scheme is that the contributions are related to the paying
capacity as a fixed percentage of the workers wages, whereas, they are provided social security
benefits according to individual needs without distinction.
Cash Benefits are disbursed by the Corporation through its Branch Offices (BOs) / Pay Offices
(POs), subject to certain contributory conditions.
RESULTS AND CONCLUSIONS :

During my Summer Internship, I studied the working of Time Office to observe the challenges
faced by the Time Office staff, and their effectiveness in handling the employee grievances along
with carrying out their daily chores. Employee satisfaction, as it had been proven by various
studies is a crucial factor when it comes to motivating the employees to give their best. This is
where the job of Time Office becomes important as it is the junction between the top level and
junior level employees. Focusing on the employment cycle of a new recruit-

He can come from an ITI and join as an apprentice,

He can join as a temporary employee for a period of around 6 months (as per the company
policy)

Starting from the day of induction, they undergo basic training and are then employed into
various departments. The general queries they would come up with are regarding their
attendance punch (fingerprint impression on the attendance units) and leaves.

These issues are common to apprentices, temporary associates and also permanent employees.
The staff at time office efficiently takes care of these issues and more or less ensures to resolve
them at the earliest. However, there is no database of the queries or grievances which are sorted
out by the staff at time office. No documentation is done, and that leaves us with no precise data
to calculate their efficiency and the work load.

During my stay at Honda I observed that most number of unresolved queries were of past
employees, and they were regarding the submission of PF related forms. Once the employees
complete their stipulated time with Honda (around 6 months), they are relieved off their duties.
These employees then look for jobs in other areas, though most of them first choose to visit their
hometowns before looking for new employment opportunities. In most cases, they are left
unemployed for months before they find a suitable option elsewhere.
At times like these they face financial crunch too, and this is one reason these employees choose
to fill the Form 19 and 10C, to transfer the Provident Fund into their bank accounts.

Most of these employees, coming from humble backgrounds, are not well educated and this is
one of the reasons they end up filling these forms erratically. The employees can get these forms
signed and stamped by officials in Honda and then go on to submit them directly to the
Employee Provident Fund organization’s office in Wazirpur Industrial Area, Delhi. Honda Cars
also send these forms to the EPF office through courier, saving the employees from hours of
travel and discomfort.

The procedure for the same is that once the form gets submitted with the Time Office,

-the staff members check the form for basic info like Employee code

-using this info they pull up the employee data and verify the remaining details in the forms

-the forms are then looked up for the errors which are corrected

-once completed, Honda seals are stamped on the forms and are then signed by the respective
official.

-then these forms are stacked into envelopes with an attached list of details of the forms (25 in
each envelope)

-the forms are then couriered to the EPF office and the list of forms sent is displayed on the
notice board of the Time Office.

-the forms are then processed by the EPF office and it takes 3-4 weeks for the amount to get
credited into the employee’s account.
Now, those forms which does not reach EPF office due to being incomplete or incorrect or are
rejected by the EPF office for one reason or the other are not tracked down. These employees do
not receive any notification of the same from Honda Cars, and this is the reason their queries
reach time office.

Now, the staff of time office does not have a handy database of the forms they sent, and end up
suggesting the employee to look for their forms in the pile of such forms, which consists of the
previously rejected forms as well as the new forms which are under process to be sent to the EPF
office.

Mostly, looking for such forms is more gruesome than actually filling up a new form. This is the
general advice the Time Office staff gives them, once they and the employee under consideration
fail to find their forms in the stack.

So, when the form is not found, the employee gets a new form which he fills as per instructions
and submit it. Hence, the process ends up being repeated without actually removing the error.

Rather than troubleshooting the issue, the form is again fed into the system, without any
diagnosis of the cause it was rejected for and just hoping that the form gets through this time.

So it is important to properly document the process so as to ensure that not a single form goes
unaccounted for, and employees are able to trace the progress of their forms. A proper feedback
regarding rejection of the form would ensure the same mistakes are not repeated in the
subsequent forms. This would only lead to higher employee satisfaction.

It is not desired that most of the employees, who have had a good working experience with
Honda Cars, end up changing their view towards the company when they face the PF related
issues. Such issues only lead to frustration of the employees, who at times have to travel a long
way (from places like Himachal Pradesh, Madhya Pradesh, eastern U.P., Bihar etc.) in order to
enquire about the progress of their forms and ending up filling another form.
This may not only lead to bad word of mouth among the society where future employees of
Honda may come from, but may also diminish the image of the company in the eyes of potential
buyers of its products.

It was observed that the grievances of permanent employees of Honda Cars are given priority
over those of the temporary and ex-employees. While this may be an order of priority, it should
also be ensured that the difference in the priority level is not too high.

During my stay at Honda Cars, I observed that the existing staff is working to its full potential
and either they should be equipped with better software tools to enable them to handle more
work, or an extra staff should be appointed to specifically take care of the ESI and EPF related
queries.
LEARNING & SUGGESTIONS :

I got to study and understand the working of Time office and my learning from it are as follows.
Since, Honda Cars has more than 1000 temporary workers and apprentices, the rotation of
employees keeps going on throughout the year i.e., temporary associates leave after 6 months of
service and new joinees replace them. This results in induction of new and clearance of old
employees on a regular basis.

I looked into collecting employee data to register them for ESIC benefits and also into the form
submission process of withdrawal of provident fund.

The major issues faced were incomplete and incorrect application forms. This was mainly due to
the majority of workforce being semi-skilled who were not highly educated.

It was observed that there is a need to train employees regarding the process of filling the forms in
a better way. Also, it is suggested that there should be a dedicated staff member to handle these
responsibilities as they consume a lot of time of the existing employees who are already occupied
with other daily chores of attendance updation, salary processing, grievance handling etc.

The staff member should also be given telephone facility to ensure increased efficiency while
handling forms that are incomplete. This would speed up the process and result in higher
satisfaction of employees, while working there and also after they leave the company.
This would result in positive feedback of the company through word of
mouth to its potential future employees.

Also, there is a need to have a system where the issues and queries of the employees could be
entered and the status (resolved or under process) can be updated in real time. This would not only
help in tracking the performance of the Associate relations team but would also be useful in
gauging the work load on the team. Once the workload is observed and quantified, better planning
could be done in terms of assigning the roles and responsibilities to the existing employees.
LIMITATIONS :
Since no study is an end in itself and error free, there are certain shortcomings and limitations in
this study as well.

 It was not possible to find the actual workload on the current staff at Time Office as the
queries and grievances go unrecorded due to lack of any suitable tool for the same.

 Miscommunication of various departments lead to confusion among the employees when

it comes to getting their issues resolved.

 Employees should be better informed to take their issues to the corresponding department.
This leads to a lot of dissatisfied employees and a number of unresolved queries which
shouldn’t have been stuck with that department at the first place.

 Above two points leads to increased workload on the Time Office staff and not only affects
their efficiency but also leads to higher stress levels dealing with issues out of their domain.
Such instances affects the productivity of the employees while dealing with the tasks they
are supposed to take care of.

 This would lead to false statistics when it would come to actually calculating the number
of queries/grievances that Time Office staff handles, and their efficiency in resolving them.
REFERENCES:

www.hondacarindia.com
www.esic.in
www.epfindia.com
https://en.wikipedia.org/wiki/Honda