Project 2222
Project 2222
(At Bhiwani Textile Mills) Submitted Toward Partial Fulfillment Of Requirement For The Award Of (MASTER IN BUSINESS ADMINISTRATION DEGREE)
2007-2009
Under the guidance of: Mr. Omesh Chadha Faculty (MBA Dept.)
TABLE OF CONTENTS
Serial
CHAPTERS
PAGE NO. 3 4 6 7 8 15 16 18 36 60 61 62 63 64 68
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
INTRODUCTION OF THE TOPIC SIGNIFICANCE OF THE STUDY CONCEPTUALIZATION INDUSTRIAL PROFILE OBJECTIVE OF THE STUDY JUSTIFICATION OF THE STUDY FOCUS OF THE STUDY RESEARCH METHODOLOGY ANALYSIS & INTERPRETATION FINDINGS SUGGESTIONS LIMITATIONS CONCLUSION ANNEXURE BIBLIOGRAPHY
l No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
TABLE 1- Companys philosophy & culture TABLE 2- Companys management style TABLE 3- Managers contribution to employee satisfaction TABLE 4- Integration of HRP with Strategic planning TABLE 5- Employee welfare & social security facilities TABLE 6- Canteen management committee TABLE 7- Ambulance room or ambulance van facility TABLE 8- Why you joined this company TABLE 9- Objectives of organization TABLE 10- Satisfaction with current profile TABLE 11- Different parameters to be rated TABLE 12- To rate different parameters TABLE 13- Rating of parameters TABLE 14- Satisfied with compensation TABLE 15- Companys housing facility TABLE 16- Medical facilities apart ESI TABLE 17- Satisfied with current job profile TABLE 18- Methods to give welfare Schemes TABLE 19- How you rate your organization
49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
Social security
There is a common proverb called man is a social animal and right from inception he is struggling for his security. Social security is having dynamic concept in the modern age, which influences the social as well as economic policy. Though, the social security programs differ from country to country, they have these characteristic in common 1) They are established by law. 2) They provide some form of cash payments to individual to compensate at least a part of the lost income that occurs due to such contingencies as unemployment, maternity, worker injury, industrial disease, frugal, widowhood.
CONCEPTUALIZATION
Employee Welfare
The term Employee welfare may be viewed as a total concept, as a social concept and as a relative concept. The total concept is a desirable state of existence involving the physical, mental, moral and emotional well-being. The relative concept of welfare implies that welfare is relative in time and place. It is dynamic and flexible concept and hence its meaning and content differ from time to time, region to region, industry to industry, level of education, social custom, degree of industrialization and general standard of the socio-economic development of the people.
Employee welfare is an important facet of industrial relations, the extra dimension, giving satisfaction to the worker in a way, which even a good wage cannot. With the growth of industrialization and mechanization, it has acquired added importance. The workers, both in industry and agriculture cannot cope with the pace of modern life with minimum sustenance amenities. He needs an added stimulus to keep body and soul together. Employees have also realized the importance of their role in providing these extra amenities, and yet, they are not always able to fulfill workers demand, however reasonable they might be. Employee Welfare implies the setting up of minimum desirable standard and the provision of facilities like health, clothing housing, medical, education, insurance, job security, recreational etc. to enable the worker and to live a good working life and social life.
Social Security
There is a common proverb called man is a social animal and right from inception he is struggling for his security. Social security is having dynamic concept in the modern age, which influences the social as well as economic policy. At present, the concept of social security is based on recognition of the fundamental social right guaranteed by law to al human beings who live from their own Employee and who find themselves unable to work temporarily or permanently for reasons beyond their control.
It is now widely believed that social security can act as a catalyst for social transformation and progress. In this respect Mr. Francis Blanchard former Director general ILO has appropriately said that Social Security is an instrument for social transformation and progress and must be preserved supported and developed as such. Furthermore far from being an obstacle to economic progress as is all two often said social security organized on a firm and sound basis will promote progress since once men and women benefit from increased security and are free from anxiety for the morrow. They will become more productive. The concept of Social Security includes provision for hosing, safe drinking water, sanitation, health, education and cultural facilities as also a minimum wages, which can guarantee workers to maintain themselves in a decent life.
person employed in them to perform their work in healthy and peaceful surrounding and avail of facilities which improve their health and bring high moral. According To ILO
STATUTORY
Statutory welfare facilities comprise of those facilities required to maintain compulsory standard of health and safety of workers, such as How to work, Hygienic Atmosphere etc. & which are mandatory for the organization in accordance with government rules which are to be adhered to.
Cleanliness
Under section 11 of the Factory act, 1948 provides for the cleanliness of manufacturing of production department workers are responsible and for the cleanliness of outside and inside the mill, Four Sweepers are recruited. Sweeper 2 1 1 Timing 9 am to 5 PM 3 to 11 11 to 7 Area Of Work General Shift, Offices, Canteen, Outside (1stshift), Side area including staff Latrines, Urinals (2nd shift), Side area including staff Latrines, Urinals
Under section 13 of The Factory act provides that suitable provisions shall be made in every factory for security and maintaining in every workroom. BTM provides this facility as Engineering department is responsible for ventilation and temperature maintenance. Arrangement of carrier fans with spray nozzles during summer while arrangements of return air along with steam supply during winter. Exhaust fans are also fitted to carry out the dust and fumes and for circulation of fresh air.
Artificial Humidification
Under section 15 of The Factory act 1948 provides that in respect of all the factories in which the humidity of the air is artificially increased.
The State Government may make rules: Regulating the methods used for artificially increasing the humidity of the air.
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Directing prescribed test for determining the humidity of the air to be correctly carried out and recorded.
Canteen
Under section 46 of The Factories Act, provides that a canteen shall be provided and maintained by the occupier for the use of the workers in any factory wherein more than 250 workers are employed. To manage the canteen CANTEEN MANAGEMENT COMMITTEE should be formed consisting representative of employer and the employees. Without prejudice in the generality of the foregoing power, such rules may provide for a) The date by which such canteen shall be provided b) The standards in respect of construction, accommodation, furniture and other equipment of the canteen. c) The foodstuffs to be served therein and the charges which may be made therefore.
Lighting
The lighting arrangement has also its importance. Poor lighting arrangements increase the inefficiency of the workers. To protect the eyesight of workers and to prevent glare and formation of shadows section 17 imposes: A duty upon the occupier to provide and maintain: a) Sufficient and suitable lighting b) Such lighting should be natural or artificial or both All glazed windows and skylights provided for passing of lights should be kept clean from both side of the surface.
Washing Facilities
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Under section 42 of Factories Act 1948 lay down that every factory has to provide these facilities: a) Adequate and suitable facilities for washing shall be provided and maintained for use of the workers therein b) Separate and adequate screened facilities shall be provided for the use of male and female workers c) Such facilities shall be conveniently accessible and shall be kept clean
Crches
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Under Section 48 of The Factories Act, crches facilities should be provided in every factory wherein more than 30 women are employed, for the use of the children under the age of 6 years.
Drinking Water
Section 18 Of The Factories Act provides these rules a) Effective arrangements shall be made to provide and maintain at suitable points conveniently situated for all workers employed therein a sufficient supply of wholesome drinking water. b) In every factory where in more than two hundred and fifty workers are ordinarily employed, provisions shall be made for cooling drinking water during hot weather by effective means and for distribution thereof.
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c) All such accommodation shall be maintained in clean and sanitary conditions at all times.
Welfare Officer
The officer who doing the work regarding the facilities which are provide to workers for their welfare, known as Welfare Officer. The State Government may makes rules under section 49 (1) and (2) of The Factories Act as a) In every factory wherein five hundred or more workers are ordinarily employed the occupies shall employ in the factory such number of welfare officers as may be prescribed. b) The government may also prescribe the duties, qualification and conditions of services of officers employed.
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Weekly Holidays:
Notices given under sub-section (1) may be canceled by a notice delivered at the office of the inspector and a notice displayed in the factory not later than the day before the said day or the holiday to be cancelled, whichever is earlier.
Compensatory Holidays
The provisions of section 52, a worker is deprived of any of the weekly holidays for which provision is made in sub-section (1) that section he shall be allowed, within the month in which the holidays were due to him.
Daily Hours
No adult worker shall be required or allowed to work in a factory more than 9 hours in a day.
Spread-Over
The period 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 halfhours in any day.
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Coverage
The Act covers workers employed in a factory or any industry specified in Schedule-I in which 20 or more workers are employed or which the Central Government notifies in its officials Gazette. The Act does not apply to co-operative societies employing less then 50 persons.
Administration
Tripartite Central Board of Trustees represented by Employers, Employees and the Government administers the Act. Its % Basic Pay + DA + Cash Value Of Any Food Concession Upto a maximum of Rs. 65,00 only.
Contribution Description EPF Employees 12% of Wages 10% of Wages in case less then 20 persons. PENSION 8.33% of Employee Share. Central Government to contribute 1.16% DEPOSIT LINK INSURANCE 1% Employers 12% of Wages 10% of Wages in case less then 20 persons. NIL NIL
This act covers workers employed in factories, mines, plantations, mechanically propelled vehicles, construction works, railways, ships, circus and other hazardous occupation specified in schedule II of the Act.
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Administration
The State Government administers the Act by appointing Commissioners for this purpose under Section 20. The Act has categorized the injuries in the following manner and the calculation of compensation there under TYPE OF INJURY Total Disablement a) Temporary b) Permanent EXAMPLE Fracture in both hands or legs COMPENSATION
25% of monthly wages paid fortnightly till recovery Amputation of both hands or 60% of monthly wages or Rs. legs or loss of vision in both 90,000 whichever is more. eyes
Partial Disablement a) Temporary Fracture in both hands or legs Upto 3 days nil. Beyond 3 days 25% of monthly wages paid fortnightly till recovery
b) Permanent
Permanent Amputation of both 50% of monthly wages or Rs. hands or legs or loss of vision 80,000 whichever is more. in both eyes
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employing 10 or more than 10 persons and on 20 or more than 20 persons without aid of powers.
Administration
The Employees State Insurance Corporation, an autonomous body, administrates The Act.
Contribution
Employees Share is 1.75%. Employers Share is 4.75%.
Benefits
Under this Act an insured is entitled to receive the following types of benefits: a) Medical Benefit c) Maternity Benefit e) Dependents Benefit g) Medical Bonus b) Sickness Benefit d) Disablement Benefit f) Funeral Benefits
The Employees Deposit Link Insurance Act, 1976: This Act is fully implemented in BTM Bhiwani and the provision of Deposit Linked Insurance Scheme is attached with LIC. The LIC is paying minimum Rs. 6000/- even on one-day employment and maximum Rs. 62,000/- where as PF Department will pay Rs.
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500/- minimum on one year employment and maximum Rs. 60,000/- according to balance in PF A/c.
Administration
Tripartite Central Board of Trustees represented by Employers, Employees and the Government administers the Act.
Benefits
a) Superannuating Pension c) Short Service Pension e) Permanent Disablement Pension g) Monthly Children Pension Monthly Members Pension = b) Reduced Pension d) Less Than 10 Years f) Widow Or Widowers Pension h) Nominee Pension Pensionable Salary * Pensionable Service 70
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The act is applicable to all establishments not covered under the Employees State Insurance Act, 1948.
Administration
The Employees State Insurance Corporation administers the Act. Periods Under The Maternity Benefit Act 6 Weeks After delivery/ miscarriage/ MTP 1 Month Period to 6 weeks before EDD Not. 6 Weeks Before EDD Total 12 Weeks Before and after delivery 6 Weeks After miscarriage/ MTP 2 Weeks Tubectomy operation 1 Month Illness due to pregnancy miscarriage/ MTP/ premature birth/ tubectomy Two Break In A Nursing Day Prohibited from work or to work On arduous work/ continuous standing Leave with wages Leave with wages Leave with wages Leave with wages By employer woman By employer At maternity rate At maternity rate At maternity rate At maternity rate or
Leave with wages At maternity rate subject tap production of certificate Till child is a 12 Those entitled to month, Rs.250, maternity benefit Medical Bonus Provide no pre natal or post natal
Coverage
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The act is applicable to all establishments where 10 or more persons are working and have completed 5 years of service.
Administration
The Company or Trust administrates The Fund if the Trust is linked with LIC.
Benefits
Under the Act, an employee is eligible to get Gratuity amount if he renders 5 years continuous service in the organization. The Gratuity amount will be payable as under.
The equation is: (Salary/ 26) * 15 * Year of Service The maximum limit of gratuity payment is Rs. 3.5 lakes but if the employer wants to pay more than he can pay Upto any limit.
Administration
The Company administrates The Fund.
Benefits
Under the Act, an employee whose salary or wages does not exceed more than Rs.3500/is eligible to get Bonus up to the salary of Rs. 2500 per month @ 8.33% if he has
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completed One-Month Service. If the employer is interested to pay bonus on higher salary / wages than he can pay bonus Upton any limit. The rate of Bonus will be increased in case Company earns more Profit up to 20%. Every employee who has completed One Month is eligible for the Bonus.
Eligibility
Minimum 30 days working in the year.
Minimum Bonus
8.33% of annual salary or wages.
Maximum Bonus
20% of annual salary or wages In case salary or wages is more than 2500/- then the Bonus limit would be calculated as if his wages or salary is Rs. 2500/- only.
Methods of calculation
Take net profit of the establishment from the P & L A/C. Make adjustment as provided in the first or second Schedule. The result is Gross Profit as defined under the Bonus Act. New deducting the following a) Development rebate / investment all b) Depreciation c) Direct taxes liabilities as per section 7 Available Surplus is the above + difference between taxes on GP of last year before deducting Bonus and after deducting Bonus Allocable Surplus is 60% of Available Surplus
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INDUSTRIAL PROFILE
INDUSTRIAL PROFILE
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Indian textile industry is one of the oldest industries in the largest in the country; Indian textile industry has undergone many transformations during its progress from historic periods to the present modern shape. The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing. Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector, for the first time a separate Policy Statement was made in 1985 in regard to development of textile sector. The textile policy of 2000 aims at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. The main markets for Indian textiles and apparels are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan.
AN OVERVIEW
Close to 14% of the industrial output and 30% of the export market share is contributed directly by the Indian textile industry. Indian textile industry is also the largest industry when it comes to employment that generates jobs not just within but also in various support industries like agriculture. As per a recent survey the textile industry is going to contribute 12 million new jobs in India by 2010 itself.
Indian textile industry is as old as the word textile itself. This industry holds a significant position in India by providing the most basic need of Indians. Starting from the
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procurement of raw materials to the final production stage of the actual textile, the Indian textile industry works on an independent basis. Indian textile industry concludes of various segments like: 1. 2. 3. 4. 5. 6. 7. Woolen Textile Cotton Textiles Silk Textiles Readymade Garments Jute And Coir Hand-Crafted Textile Like Carpets Man-Made Textiles
Indian textile industry in a very short span had made a distinct position globally, alluring the globe towards the World of Indian textiles. This has happened mainly because: High availability of raw materials Highly skilled economical labor, an added advantage Largest producer of cotton yarn contributing 25% towards worlds cotton Availability of all kinds of fibers like silk, cotton, wool and even high quality synthetic fibers Flexibility of the readymade garment industry in terms of sizes, fabric variety, quantity, quality and cost
Its not just the present that is shinning like a bright start but also the future, as the textile export market of India is expected to reach a high of $50 billion by 2010. This will eventually make a profit by 300%. In order to attain this target Indian textile industry has already started improving their design skills, including a combination of various fibers. Indian textile industry is all set to meet international standards and is planning to invest $5 billion in machineries very soon. Most of the international brands like Marks & Spencer, JC penny, Gap have started procuring most of their fabrics from India. In fact, Walmart, who had procured textile worth $ 200 million last year, intends to procure $ 3 billion worth of textile this year. The golden phase of the Indian textile industry has just begun where the world is chasing it from all nooks and corners. New innovations in clothing production, manufacture and design came during the Industrial Revolution these new wheels, looms, and spinning processes changed clothing manufacture forever. The rag trade, as it is referred to in the UK and Australia is the manufacture, trade and distribution of textiles.
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There were various stages from a historical perspective where the textile industry evolved from being a domestic small-scale industry, to the status of supremacy it currently holds. The cottage stage was the first stage in its history where textiles were produced on a domestic basis. During this period cloth was made from materials including wool, flax and cotton. The material depended on the area where the cloth was being produced, and the time they were being made. In the later half of the medieval period in the northern parts of Europe, cotton came to be regarded as an imported fiber. During the later phases of the 16th century cotton was grown in the warmer climes of America and Asia. When the Romans ruled, wool, leather and linen were the materials used for making clothing in Europe, while flax was the primary material used in the northern parts of Europe. During this era, the merchants who visited various areas to procure these leftover pieces bought excess cloth. A variety of processes and innovations were implemented for the purpose of making clothing during this time. These processes were dependent on the material being used, but there were three basic steps commonly employed in making clothing. These steps included preparing material fibers for the purpose of spinning, knitting and weaving. During the Industrial Revolution, new machines such as spinning wheels and handlooms came into the picture. Making clothing material quickly became an organized industry as compared to the domesticated activity it had been associated with before. A number of new innovations led to the industrialization of the textile industry in Great Britain. Clothing manufactured during the Industrial Revolution formed a big part of the exports made by Great Britain. They accounted for almost 25% of the total exports made at that time, doubling in the period between 1701 and 1770. The center of the cotton industry in Great Britain was Lancashire and the amount exported from 1701 to 1770 had grown ten times. However, wool was the major export item at this point of time. In the Industrial Revolution era, a lot of effort was made to increase the speed of the production through inventions such as the flying shuttle in 1733, the flyer-and-bobbin system, and the Roller Spinning machine by John Wyatt and Lewis Paul in 1738. Lewis Paul later came up with the carding machine in 1748 and in 1764 the spinning jenny was also developed. Richard Ark Wright invented the water frame in 1771. Edmund Cartwright invented the power loom in 1784.
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In the initial phases, textile mills were located in and around the rivers since they were powered by water wheels. After the steam engine was invented, the dependence on the rivers ceased to a great extent. In the later phases of the 20th century, shuttles that were used in the textile industry were developed and became faster and thus more efficient. This led to the replacement of the older shuttles with the new ones. Today, modern techniques, electronics and innovation have led to a competitive, lowpriced textile industry offering almost any type of cloth or design a person could desire. With its low cost labour base, China has come to dominate the global textile industry.
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COMPANY PROFILE
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brief description of the different companies under the umbrella of Aditya Birla Group involved in Viscose Rayon Fiber, Textiles and Garments Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along with Aditya Birla Nuvo can be considered as the flagship companies of the AV Birla Group. Indian Rayon rechristened as Aditya Birla Nuvo Ltd in 2005.
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies, with consolidated net revenues of Rs.141 billion (FY2007). Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise Viscose Staple Fibre (VSF), Cement, Sponge Iron, Chemicals and Textiles in all of which the company holds a dominant position. In July 2004, Grasim acquired a majority stake and management control in UltraTech Cement Limited, the de-merged cement business of Larsen & Toubro Limited (L&T). One of the largest of its kind, in the cement sector, this acquisition catapulted the Aditya Birla Group at the top of the league in India. The Group's combined capacity stands raised to 31 million tpa, of which 17.0 million tpa capacity comes from UltraTech and 1.1 million tpa from Shree Digvijay Cement Co. Ltd, another subsidiary of Grasim. Between Grasim and its subsidiaries, the Group has 11 composite plants, seven split grinding units, four bulk terminals inclusive of one in Sri Lanka and 10 ready-mix concrete plants. Importantly, it gives the Group a strong national presence, with a leadership position in 17 states.
Cement
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The Aditya Birla Group is the 11th largest cement producer in the world and the seventh largest in Asia.
Sponge Iron
It is the largest merchant producer of sponge iron in India.
Chemicals
Grasim has India's second largest caustic soda unit.
Textiles
Its premium brands, the Grasim and Graviera range of fabrics, have distinctively positioned themselves as 'the power of fashion'. All of Grasim's units have earned ISO 9002 and 14001 certifications. Product quality, innovation and eco-friendliness are a hallmark of all the company's divisions.
A BRIEF HISTORY
Grasim was incorporated on August 25, 1947; just 10 days after India became independent, manufacturing textiles made from imported raw materials. It is now a global
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leader in viscose staple fibre (VSF), the country's largest merchant producer of sponge iron and the second-largest caustic soda maker in India; and poised to be India's largest cement manufacturer. 1947
Grassy Industries Ltd is incorporated. Grasim launches production of fabrics at Gwalior using imported rayon a manmade cellulose fibre.
1950
1954
Grasim begins rayon production at Nagda. Grasim starts an engineering division to provide plant and machinery for VSF production.
1962
1963
Grasim sets up its first rayon grade pulp plant at Mavoor, Kerala; the first to make rayon grade pulp from bamboo and other hardwoods. Grasim purchases a composite textile mill at Bhiwani, Haryana. Rayon production commences at Mavoor, Kerala. A completely indigenous plant based on Grasim's own engineering and knowhow, begins production at Harihar, Karnataka.
1968
1972
1977
Grasim's third rayon plant at Harihar, Karnataka goes into production. Vikram Cement Grasim's first cement plant goes on stream at Jawad, Madhya Pradesh.
1985
1987
1991
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A third production line is added at Vikram Cement. Grasim sets up Birla International Marketing Corporation (BIMC), a merchant exporter. First GDR issue on December 2, 1992 for US$ 90 million.
1992
Vikram Ispat, India's third-largest gas-based sponge iron plant, is commissioned. Birla Consultancy & Software Services is set up, to provide IT consulting services and for software development
1994
Second issue of GDRs on June 15, 1994 for US $100 million. Nos: 4,878,048
1995
Grasim commissions two greenfield cement plants Grasim Cement at Raipur (Madhya Pradesh) and Aditya Cement at Shambhupura (Rajasthan). Grasim sets up two new spinning units Elegant Spinners at Bhiwani (Haryana) and Vikram Woollens at Malanpur (Madhya Pradesh).
1996
The first phase of Grasim's fourth VSF plant commissioned at Kharach, Gujarat. Grasim's first major acquisition overseas the Atholville Pulp Mill in Canada. Grasim acquires Dharani Cements Ltd. Grasim acquires Shree Digvijay Cements Ltd. The cement business of group company, Indian Rayon and Industries Ltd (IRIL), is transferred to Grasim in a corporate restructuring exercise.
1998
1999
Grasim's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor are closed down owing to lack of raw material.
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Third issue on September 16, 1999 to Indian Rayon's GDRs holders: Three GDRs in Grasin for every 10 GDRs in Indian Rayon, on demerger of its Cement business into Grasim. Nos: 1,624,336
2000
The Lawson Competency Centre is set up as a division of Birla Consultancy & Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA), among Fortune's top five private software companies.
Consultancy and software services are spun off as a separate entity, called Birla Technologies Ltd. Merger of Dharani Cements into Grasim. Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3 per cent by October 2002 Four ready-mix concrete plants commissioned, with an aggregate capacity of one million cubic meters per annum. Divests holding in Birla Technologies to PSI Data Systems. 2002 VSF Research & Application Centre set up at Kharach in Gujarat The Grasim Board approves an open offer for purchase of up to 20 per cent of the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the provisions and guidelines issued by the Securities & Exchange Board of India (SEBI) Regulations, 1997.
2001
Grasim increases its stake in L&T to 14.15 per cent 2003 Grasim's Chemical Division receives the SA 8000 (Social Accountability) and OHSAS 18001 certifications. The board of engineering major Larsen & Toubro Ltd (L&T) decides to demerge its cement business into a separate cement company (CemCo). Grasim will acquire an 8.5 per cent equity stake from L&T and then make an open offer for 30 per cent of the equity of CemCo, to acquire management control of the company.
2004
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Completion of the implementation process to demerge the cement business of L&T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech
Board reconstituted with Mr. Kumar Mangalam Birla taking over as Chairman The Staple Fibre Division and Engineering & Development Division of Grasim, Nagda receives SA 8000:2001 certification from SAI in recognition of its social accountability initiatives.
Grasim divests its Gwalior unit to Melodeon Exports Ltd, and consolidates all textile operations at the Bhiwani unit, which will manufacture both the 'Grasim' and 'Graviera' brands at a single location.
Grasim commences production of rayon grade caustic soda a major raw material for VSF production at Nagda; another step towards becoming self-reliant
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The objective of the study carried out at Bhiwani Textile Mills is to know how Employee welfare & social security system of the organization motivates their employees. The objective is to know the prevailing Employee welfare & social security system of the organization is efficient and effective and to know, are the employees satisfied with the system and if not what changes they would like to prefer. Welfare may help minimize social evils, such as alcoholism, gambling, drug, addiction & other such evils. In order to get the best out of a worker in the matter of production, working conditions require to be improved to a large extent. The workers should at least have the means and facilities to keep him in a state of health and efficiency. This is primarily a question of adequate nutrition and suitable housing conditions. The work place should provide reasonable amenities for his essential needs. The worker should also be equipped with the necessary technical training and a certain level of general education. Keeping in view the above points, I have carried a study on Employee welfare to know the fact & appraise the Bhiwani Textile Mills about the situation so that appropriate measure can be taken in time.
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Before carrying out a research study it is mandatory to state research problem in a definite manner. Regarding study, the research problem is to study and understand the topic i.e. employee welfare & social security. . I have chosen this topic because I wanted to have in depth knowledge of employee welfare because some HR professionals inspired me to opt this topic. Moreover, I had keen interest to study about this topic i.e. employee welfare & social security of the Aditya Birla Group (of which Bhiwani Textile Mills is a subsidiary). My training guide suggested me this topic for research as employee welfare &social security is the basic activity and essential for each organization to take care of its manpower for its successful functioning. The main purpose of this study is to know how an organization can improve their employee welfare & social security schemes. Therefore I have selected this topic.
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Men instead of money will have to be accepted as the most valuable resources of any organization. The management has to recognize the inevitability of developing human assets, knowledge, professional skills, experiences and creativity of their employees.
To study the Employee welfare scheme for the workers at Bhiwani Textile Mills.
To gain maximum knowledge about practical work. To work under an authority in discipline. To see the employees practical work. To complete the better project. To understand the social security schemes, which are, provide to employees. To gain some experience about official work.
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Economic Services
These provide some additional economic security over and above wages or salaries, such as pension, life insurance, credit facilities etc.
Recreational Services
The employees are in need of occasional diversion; their attitude improves when the routine of everyday living is broken occasionally. For this purpose, management may provide for recreational facilities.
Facilitative Services
These are conveniences facilities, which are the employees ordinarily, require such as: Canteen, Rest Room and Lunch Room Housing Facilities Medical Facilities etc. Washing Facilities Educational Facilities Leave Travel Concession
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Social Security
The need of social security measures arises to help the people when they are unemployed and exposed to risk such as sickness, maternity, old age etc.
b) Social Assistance
It is a program through which the Government attempts to ameliorate the distress caused by the contingencies of life.
c) Public Service
Such programs are usually financed directly by the Government from its general revenue in the form of cash payments
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
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RESEARCH DESIGN
A research design is the specification of methods & procedure for acquiring the information needed. This is overall operation pattern or framework that stipulates information is to be collected from which sources and by what procedure.
RESEARCH DESIGN USED: In my project work I used exploratory research, as it aim to answering question about sale, brand availability, service quality, distribution pattern etc. For conducting this study, Exploratory Research design was used, since: It is natural. It is flexible. It is useful to find out the most likely alternatives. It is appropriate, when hypothesis have been established.
The objective of exploratory research is to find out new ideas, it is important to give respondents to greatest freedom of response have conducted individually or in depth interview, by which respondent asked to project themselves into a particular situation.
STUDY AREA
The study of the topic Employee Welfare & Social Security has been confined to the employees of the Bhiwani Textile Mills. I have chosen both subjective and objective methodology with sampling, questionnaire and interview, analysis of data to complete my project study. For acquisition of data from different levels of the organization, I have made QUESTIONNAIRE FOR EMPLOYEES form and QUESTIONNAIRE FOR MANAGEMENT For analysis of data statistics methods are used to arrive at the conclusion.
SAMPLE
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For the purpose of the study, the field has been divided into category- management and Employees at all levels. The sample size of 50 employees is divided into 25 from management, & 25 from remaining Employees at all levels). Apart from their written choice the form of questionnaire, they have also been interviewed for crosschecking and proving authenticity of their choice.
QUESTIONNAIRE
The data is collected from Management and staff workers with the help of a questionnaire prepared for this purpose. Data was also collected through personal interaction with all the respondents. The questionnaire consists of the job profile as well as the recognition system being practiced in the organization and also the opinion and feeling of the respondents about the measures. The questionnaire has been thoroughly discussed with the respondents to clarify doubts, if any, regarding the information required. The illiterate and low educated workers found it slightly difficult to understand the questions in a straightforward manner. Their fear and suspicions were put to rest when assured that the study is purely an academic exercise and the information supplied by them would be kept confidential.
TABULATION OF DATA
The data collected has been classified and put into pie charts & bar graphs. On the basis of these classifications, pie charts & bar graphs interpretations have been made. Classifying all the information according to the levels and experience of the respondents has done. The respondents answers, opinions, suggestions and viewpoints have been properly examined and utilized in this report. Different charts have been constructed to supplements the analysis.
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1. To what extent are the Companys operating philosophy and culture understood by employees?
Sr. No. 1 2 3 4 Option Chosen Strongly agree Agree Strongly disagree Disagree No. of employees 14 7 1 3 % Employees 56 28 4 12
ANALYSIS
INTERPRETATION
56% employees strongly agree that they get welfare facilities from company. 28% employees only agree.4% employees strongly disagrees that they get welfare facilities from company.12% employees disagree that they get welfare facilities from the company. 2. Can the Companys management style be described as participative?
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TABLE 2
Sr. No. 1 2 3 4
No. of employees 12 10 1 2
% Employees 48 40 4 8
ANALYSIS
8% 4% 40% S trongly A gree 48% A gree S trongly Dis agree Dis agree
INTERPRETATION
48%( 12) strongly agree that companys overall management style is participative. 40% (10) of the employees only agreed .4% (1) of the employees strongly disagree about this philosophy and8% (2) of the employees disagreed.
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3. To what extent do the managers in the Company work towards employees satisfaction?
Sr. No. 1 2 3 4 Option Chosen Strongly agree Agree Strongly disagree Disagree No. of employees 12 9 3 1 % Employees 48 36 12 4
TABLE 3
ANALYSIS
12%
4% 48%
36%
INTERPRETATION
48% (12) employees strongly agree that managers work hard toward employees satisfaction. 36% (9) employees only agree. 12% (3) strongly disagree that managers work hard toward employees satisfaction. 4% (1) employees disagree.
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4. To what extent do you agree with the following statement Human resource planning is well integrated with strategic planning in our company?
Sr. No. 3 1 2 4 Option Chosen Strongly disagree Strongly agree Agree Disagree No. of employees 3 13 8 1 % Employees 12 52 32 4
TABLE 4
ANALYSIS
12%
4% 52%
32%
INTERPRETATION
52% (13) employees strongly agreed that human resources planning are well integrated with strategic planning. 32% (8) employees only agreed.12% (3) employees strongly disagreed about this. 4% (1) employees disagreed about this.
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TABLE 5
5. Are the Employee welfare & social security facilities extended to contract workers too?
Sr. No. 1 2 Option Chosen Yes No No. of employees 17 8 % Employees 68 32
ANALYSIS:
INTERPRETATION
This chart depicts, the management gives Employee welfare & social securities facilities to contract workers. 68% (17) members of management are saying yes regarding these facilities to contract workers. 32% (8) members of management are saying no regarding these facilities to contract workers
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TABLE 6
ANALYSIS:
INTERPRETATION This chart depicts, the company have a canteen management committee & 72% (18) of the members of management voted for yes regarding these facilities. 28% (7) of the members of management voted for no regarding these facilities
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TABLE 7
Sr. No. 1 2
No. of employees 22 3
% Employees 88 12
ANALYSIS:
INTERPRETATION This chart depicts, the company have an Ambulance Room or Ambulance Van. 88% (22) of the members of management are saying yes regarding these facilities. 12% (3) of the members of management are saying no regarding these facilities.
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TABLE 8
Sr. No. 1 2 3 4
No. of employees 10 4 8 3
% Employees 40 16 32 12
ANALYSIS INTERPRETATION
40% (10) strongly say that they joined the organization because of Good Salary Package offered. 16%(4) employees said that they joined organization for status. 32% (8) employees said that they joined the organization because of welfare schemes.12% (3) employees joined the organization because of others reasons.
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TABLE 9
Sr. No. 1 2 3 4 5
Option Chosen Profitability Survival & Growth Efficiency Any Other Total
No. Of employees 7 9 6 3 25
% Employees 28 36 24 12 100
ANALYSIS
Profitability 28%
INTERPRETATION
28% (7) employees strongly believed that the objective of organization is profitability. 36% (9) said that the survival & growth is main objective of our organization. 24% (6) believe strongly that the efficiency in the level of service is main goal of organization. 12% (3) believed that the goal of the organization is other than the specified above.
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TABLE 10
ANALYSIS
Unsatisfied 8%
Satisfied 48%
INTERPRETATION
20% (5) employees are very satisfied with their current job profile. 48% (12) employees are only satisfied with their current job profile.24% (6) employees said that they are not so satisfied with their current job profile.8% (2) employees said that they are unsatisfied with their current job profile.
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TABLE 11
ANALYSIS
18 16 14 12 10 8 6 4 2 0 6 5 4 3 2 1
INTERPRETATION
15 employees have given cleanliness as their maximum priority for satisfaction level. 13 employees have given drinking water as their priority.12 employees have given
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lighting & spittoons as their priority.10 employees have given ventilation & temperature as their priority. 2. Mark your satisfaction level with regard to following parameters related to safety in your department. (6 is best and 1 is worst) Parameters Fire Protection Hoists and Lifts Self-Acting Machine 6 8 9 4 5 4 6 3 4 6 3 4 3 3 7 3 2 2 6 1 2 5
TABLE 12
ANALYSIS
INTERPRETATION
8 employees have given fire protection as their maximum priority for satisfaction level.9 employees have given hoists & lifts as their maximum priority for satisfaction level.4 employees have given self-acting machine as their maximum priority for satisfaction level.
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TABLE 13
welfare in your department. (6 is best and 1 is worst) Parameters Facility for Storing & Drying Clothes Rest Room First Aid/Medical Service Canteen 6 12 14 17 17 5 6 8 4 5 4 3 3 4 2 3 4 1 2 1 -
ANALYSIS
18 16 14 12 10 8 6 4 2 0 6 5 4 3 2 1
Facility for Stroing and DryingClothes First Aid/Medical Service Rest Room Canteen
INTERPRETATION
12 employees have given facility for storing & drying clothes as their maximum priority for satisfaction level. 14 employees have given facility of rest-room as their maximum priority for satisfaction level. 17 employees have given facility for canteen, first-aid/medical services as their maximum priority for satisfaction level.
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4 Are you satisfied with the compensation given to you in case you get injured at the work place?
TABLE 14
Sr. No. 1 2
No. Of employees 18 7
% Employees 72 28
ANALYSIS
INTERPRETATION
This chart depicts, the management gives compensations facility to workers.72% (18) of the members of management are saying yes regarding these facilities to workers. 28% (7) of the members of management are saying no regarding these facilities to workers.
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5. Do you get company Housing & Education facility? Sr. No. Option Chosen Yes No No. of employees 16 9 % employees 64 36
TABLE 15
1 2 Analysis
No 36%
Yes 64%
INTERPRETATION This chart depicts, the management gives Housing & Education facility to workers.64% (16) of the members of management say yes regarding these facilities to workers. 36% (9) of the members of management say no regarding these facilities to workers.
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TABLE 16
Sr. No. 1 2
No. of employees 21 4
% Employees 84 16
INTERPRETATION This chart depicts, the management gives Medical benefits as apart of ESI facility to workers.84% (21) members of management are saying yes regarding these facilities to workers. 16% (4) members of management are saying no regarding these facilities to workers.
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Q7. Are you satisfied with the present job profile? Sr. No. 1 2 3 4 Option Chosen Very satisfied Satisfied Not so satisfied Unsatisfied No. of employees 7 11 5 2 % Employees 28 44 20 8
TABLE 17
Unsatisfied 8%
Satisfied 44%
INTERPRETATION 28% (7) employees are very satisfied with their current job profile. 44% (11) are only satisfied with their current job profile.20% (5) employees said that they are not so satisfied with their current job profile.8% (2) employees said that they are unsatisfied with their current job profile.
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8. Are the methods used to give you welfare schemes are genuine? Sr. No. 1 2 3 4 Option Chosen Most of the time Some time Once in a while Never No. of employees 12 4 5 4 % Employees 48 16 20 16
TABLE 18
Never 16% Once In While 20% Some Time 16% Most Of The time 48%
INTERPRETATION 48% (12) employees said methods of welfare are genuine most of the times.16% (4) employees said methods of welfare are genuine only some times.20% (5) employees said methods of welfare are genuine once in a while.16% (4) employees said methods of welfare are never genuine.
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9. How do you rate your organization? Sr. No. 1 2 3 4 Option Chosen Excellent Very Good Good Average No. of employees 7 11 6 1 % Employees 28 44 24 4
TABLE 19
INTERPRETATION 28% (7) employees ranked their organization as excellent.44% (11) employees ranked their organization as very good. 24% (6) employees ranked their organization as good.4% (1) employees ranked their organization as average.
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SWOT ANAYLSIS SWOT Analysis is a powerful technique for understanding the Strengths and Weaknesses, and for looking at the Opportunities and Threats one might face. Used in business context, it helps an organization carve a sustainable niche in the market. Used in a personal context, it helps one develop his/her career in a way that takes best advantages of his/her talents, abilities and opportunities. Strengths and Weaknesses are internal factor. Opportunities and Threats relate to external factors. For this reason, the SWOT Analysis is sometimes also called as Internal-External Analysis. SWOT Analysis mainly stands for S W O T = Strength = Weakness = Opportunities = Threats
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STRENGTH Strength describes the positive attributes, tangible and intangible, internal to the object or topic. I was able to get response very quickly, as I didnt have to face any Red Tapism, need for higher management approval, etc. I was really able to study the actual position of the implementation of the various legalization, which is enforced in the company.
The Employee Welfare & Social Security Schemes are regulated in BTM, so I
was able to collect information from the employees in true sense.
The Employee Welfare & Social Security Schemes motivate employees and
workers to do work with efficiency and effectively.
The Employee Welfare & Social Security Schemes satisfied economic and
social needs of employees, so Employee Turnover in BTM is very less.
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WEAKNESSESS It is always very difficult to complete a project with immaculate accuracy. Likewise my project also had some weaknesses, they are stated below as:
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OPPORTUNITIES Opportunities assess the external attractive factors that affect the topic. These opportunities exist in our surroundings. The opportunities in Human Resource field are huge in terms of employement. The facilities provided due to provisions under The Employee Welfare & Social Security Schemes give chances for equality. The Employee Welfare & Social Security Schemes give opportunities for long-term survival & growth by providing social benefits to its employees and reduced Employee absenteeism and increased productivity.
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THREATS The threats are also external factors and influenced any object externally. The threats related to my training topic are: The company has not linked Gratuity Act with LIC as, which deprive them of enjoying benefits of LIC Schemes whereas its competitors provided this facility to their workers, hence company should think about it. Employees nowadays are very intelligent and ambitious, and they want more & more, hence to satisfy them, well-defined and regulated facilities should be provided to them.
If The Employee Welfare & Social Security Schemes are not properly
provided, Employee turnover may increase and it can become a threat for the organizations survival and growth.
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FINDINGS Although the workers were more or less satisfied with various facilities provided by the company, still there were certain facilities with which the workers were not satisfied and required improvements. Some of them are listed below which I encountered during my study on Employee welfare & social security in BTM, Bhiwani. At present canteen is run by a contractor and a contractor is charging market rate on foodstuffs. The company should increase its subsidy so that foodstuffs are available on reasonable rates. The Organization does not provide Uniform to the workers. The Organization does not provide housing and education facility to the workers. The Organization hasnt increased the amount of emergency loans provided to the workers since a long time. The Organization does not provide Long Service Rewards to its employees.
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SUGGESTIONS In my view the company should deduct PF and FPF on full basic earning so that the employees at the time of retirement may able to get maximum amount from pension Fund. At present Company is paying Gratuity @ 15 days Wages or salary on one year service to all employees who completed five years continuous services .In my view the employees who have been working for more than 15 years should be allowed to get 20 days salary instead of 15 days because by giving this benefit the employees are able to compensate their interest on gratuity amount.
Company should provide Sick leave Facility to those employees who are not
covered under ESI ACT. Unemployment resulting from modernization will have to be solved by properly assessing manpower needs and training redundant employees in alternate skills. Although this is difficult process and it may be hurt some people there is no escape.
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LIMITATIONS
As I didnt have significant knowledge on this topic, I was unable to draw more information. There was also lack of time and workers also were hesitant in responding in the working hours. Non-response from both employees & management.
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CONCLUSION In our country the industrialization started very late but we have rapidly catching up with the progress achieved elsewhere and the expectation and aspiration of worker are rising rapidly. They are demanding increasing power and authority in the design making process. The Govt. is also looking sympathetically towards the working class. At BTM, Bhiwani workers are overall satisfied and contended. It is a boom for the organization because satisfaction is a personal thing and an organization cant satisfy its worker only by giving more. In the end we can conclude that workers are happy with the physical working conditions inside the factory. Workers are also happy with the safety parameters provided by the management, facilities of health and recreation, facilities provided by the ESI, medical benefits provided by the company & by the loan facility provided by the company. BTM, Bhiwani is successful in maintaining good relationship with the workers. The success of the organization is largely due to its workers as it is an Employee intensive organization.
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Q1. Do u think Companys operating philosophy and culture is beneficial to you? A Strongly agree Strongly Disagree Agree Disagree
Q2. Can the Companys management style be described as participative? A Strongly agree Strongly Disagree Agree Disagree
Q3. Do the managers in the Company work towards employees satisfaction? A Strongly agree Strongly Disagree Agree Disagree
Q4. To what extent do you agree with the following statement Human resource planning is well integrated with strategic planning in our company? A Strongly agree Strongly Disagree Agree Disagree
Q5. Are the Employee welfare & social security facilities extended to contract workers too? A: YES NO
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Q7. Is there any Ambulance Room or Ambulance Van in the organization ? A: YES NO
Q8. What prompted you to join this organization? A Good Salary Strongly Disagree status Disagree
Q9. What are the major goals/objectives of your organization? A Profitability Efficiency Survival & Growth Any Other
Q10. Are you satisfied with your current job profile? A Satisfied Not So Satisfied Very Satisfied Dissatisfied
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Questionnaire for Employees Q1. Mark your satisfaction level with regard to following parameters, which are provided in your organization. (6 is best and 1 is worst) Parameters Cleanliness Ventilation & Temperature Spittoons Lighting Drinking Water 6 5 4 3 2 1
Q2. Mark your satisfaction level with regard to following parameters related to safety in your department. (6 is best and 1 is worst) Parameters Fire Protection Hoists and Lifts Self-Acting Machine 6 5 4 3 2 1
Q3. Mark your satisfaction level with regard to following parameters related to welfare in your department. (6 is best and 1 is worst) Parameters Facility for Storing & Drying Clothes Rest Room First Aid/Medical Service Canteen Q4 Are you satisfied with the compensation given to you in case you get injured at the work place? A: YES NO 6 5 4 3 2 1
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A:
YES
NO
Q6. Does your organization provides medical benefits apart ESI? A: YES NO
Q7. Are you satisfied with the present job profile? A Satisfied Not So Satisfied A Never Many times Q9. How do you rate your organization? A Good Very Good Average Excellent Very Satisfied Dissatisfied Sometimes Most Times
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MARKETING MANAGEMENT PHILIP KOTLER, Tata McGraw Hill Publication, 12th EDITION Human Resource Management in a Business Context by Alan Price, 3rd edition (April 2007) Empowering Employees by Kenneth L. Murrell, Mimi Meredith Human Resource Management by Robert L. Mathis, John H. Jackson, 11th edition MAGAZINES BUSINESS INDIA April, 2007 UDYOG VYPAR PATRIKA. (HALF YEARLY) EDITION Employee Power MAGAZINE.JAN 2007 WEB SITE www.wikipedia.orgs www.grasimindia.com www.google.com www.yahoo.com
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