A Dissertation Project Report on Wage and salary administration and time-office
In
UNDER Submitted to the MBA Dept for Partial fulfillment of MBA Degree for the session 2009-11 Submitted by SUNITA SAHU Regd No: 0906282060 Roll no: 1429
Under the guidance of: Mr.Tara Prasad padhi Professor- HR PGCMS,SMIT,Berhhampur
P.G. CENTRE FOR MANAGEMENT STUDIES
SMIT, ANKUSHPUR.GANJAM,
ACKNOWLEDGEMENT The amount of goodwill & support that has gone into making of this project is heavier that the amount of hard work that I have put into it. Many people have directly & indirectly help me to complete this project. I want to make a thankful note on the help & support I have got from each of them. Firstly, I do express my heartiest sense of gratitude to my pro proje ject ct gui guide de Mr. Mr. Tar Tara a Pras Prasad ad Pad Padhi hi facu facult ltyy membe memberr HR depa depart rtme ment nt of SMIT SMIT,, Berh Berham ampu purr for for prov provid idin ing g me valu valuab able le guidance &encouragement during the course of my investigation & preparation of this project report. I am grateful to the management of I.R.E.L (OSCOM) for all allowin owing g me to car carry out out the the proj projec ectt work ork in thei theirr pla plant & providing necessary support during the course of investigation. I express my deep sense of gratitude to Mr .Suryakanta Patro, DGM (HRM), to whom my project was related. I offer special thanks to my guides Mr. Alsingh Ajumeera (HRM (H RM Offi Office cerr)& Mr.S Mr.Sar aroj ojBe Behe hera ra (M (Mgm gmtt Trai Traine nee) e) for for the guidance, inspiration and help they provided me. I also offer my sincere thanks to Mr.B.P.Beuria, Manager (Safety &Training) And K.T .XAVIER, DGM (Safety & Training) for their co-operation At last, I must express my gratefulness to all the staff of I.R.E.L (OSCOM) and all the workers of I.R.E.L without whose cooperation the study would never have been completed. Sunita kumari Sahu
DECLARATION I hereby declare that the project work entitled on, Wage and sal salar aryy
admi admini nist stra rati tion on
and and
time time-o -off ffic icee -STUDY
IN
IREL
(OSCO (OSCOM) M).. Subm Submit itte ted d by me for for the the part partia iall fulf fulfil illm lment ent of the the requ equirement ent for the award of the degree of MASTER OF BUSNIESS ADMINISTRATION (MBA) in HUMAN RESOURCE MANA MANAGE GEME MENT NT (H (HRM RM))
to
the PGCM PGCMS, S,SM SMIT IT,,
Ankus nkushp hpur ur,,
Berhampur in my own original work & has not been submitted to any any othe otherr Univ Univer ersi sity ty or publ publis ishe hed d at any any time time befo before re.. I also also declare that no chapter of this manuscript in whole or in part is lifted & incorporated in this report from any earlier work done by me or others.
Indian Rare Earths Limited Orissa Sand Complex (OSCOM) (Human Resources), PGCMS ,SMIT
Sunita kumari Sahu Student of MBA
CERTIFICATE This is to certify that miss Sunita
kumari Sahu student of
MBA(HR) of P.G.C.M.S,S.M.I.T (Berhampur) was working under supervision and guidance for her project work for the course MBA. Her project work entitled Wage, Salary and Time office in I.R.E.L (OSCOM) which she is submitting her genuine and original work.
Mr. Tara Prasad Padhi FACULTY-(HR) P.G.C.M.S, SMIT
(Signature) Date:
PREFACE In India the public sector has been convinced as a catalyst for development and counter-veiling force to offer effective competition to private sector and thereby prevent a business that sector. The major objective of the public sector is that of prevention of the concentration of economic power and the achievement of social justice. Rare earths shares, the valuable assets of the economy of the nation. Its exploration, extraction, and marketing are strategic. It is most vital for establishment and development of trade, commerce and industry. It contributes significantly towards foreign exchange earning and saving our national wealth. It provides direct and indirect employment to large no. of people. The operational efficiency of an organization depends to a large extent on its employees who are to be considered a part of the assets Therefore, public sector enterprises, now-a-days, have to lay emphasis on its employees(Human Research).The human resource functions like acquisition, development, retention and retirement must be carried out effectively for smooth and efficient functioning of the organization. The present study attempts an in-depth analysis of Wage and salary administration and time-office IN IRE Ltd, MATIKHALO (ORISSA), an important public sector undertaking of the Government of India which undertakes the responsibility of exploration, extraction and marketing of Rare Earths. So, in this connection, efficient management of human resources in this core sector is virtually necessary which promotes the researcher under IRE Ltd. Mathikhalo (Orissa)for study.
CONTENTS Chapter No 1.
Contents
Introduction of Company i. About IREL ii. Units of IREL iii. OSCOM Existing Units iv. Technical Services v. Organizational Structure vi. Product Profile vii. Environmental Policy
2. HR policy of Company i. Introduction To HR ii. HR Chart
iii.
HR Policies
3. Introduction of Performance Appraisal i. Performance Management
ii.
Appraisal Methods
4. Company’s Performance Appraisal i. Performance Appraisal
5.
ii.
Promotion Policy
iii.
Employee Benefit
Performance Appraisal Report Format
Page
6.
Questionnaire
I. Statistical Analysis 7. 8.
Suggestions and recommendation Summary and Conclusion
Bibliography
Chapter 1 Introduction of company
ABOUT IREL (Indian Rare Earths Limited):Indian Rare Earths Ltd (IREL) was incorporated on august 18, 1950 as a private limited company jointly owned by the Government of India and the government of Travancore, Cochin subsequently in year 1963; it became a fully fledged government of India undertaking under the administrative control of department of atomic energy. IREL is a pioneer in the field of mining and processing of beach sand minerals such as illuminate, Rutile, Zircon, Monazite, Garnet and Sillimanite etc. It is operating three mining and mineral processing units viz. At Chavara (Kerala), Manavalakurchi (Tamil Naidu) and Chatrapur (Orissa).It is also operating a chemical plant, rare earth division at Udyogamandal (kerala) for processing monazite and producing rare earths compounds with several diversification plans in progress, including modernization of existing plant and machinery, the company is poised for further growth from its current level of sales turnover of approx Rs.2900 Million with foreign exchange earning of approx Rs.1000 Million. Apart from meeting the domestic demand, IREL alters to the international markets viz.USA, CANADA AUSTRIA, FRANCE, NORWAY, GERMANY, JAPAN, SOUTHKOREA, CHINA, UKRAIN etc, even under several global competitions.
Besides providing raw materials to the basic industries and the core sector of the country, IREL also plays a strategic and unique role in the strategic atomic energy program of the country. It is the only producer of the monazite mineral containing thorium and uranium. Uranium is being extracted at the R.E Division of IREL and is used in the nuclear reactors as fuel, while thorium is considered as the fuel for the future nuclear energy programme of the country. The zircon mineral being produce by IREL is the raw material for the manufacture of zircaloy tubes used for filling uranium fuel in the nuclear reactors. Since incorporation of the company at Mumbai in 1950, the company has growing steadily during the post 50 years and the sales turnover 350, 2000-2001 reached all time highly of race 2591 Million. The company has been a significant earner of valuable foreign exchange for the nation IREL has been exporting its product to advance countries like USA, UK, FRANCE,
GERMANY etc. In the decade exports earnings have risen from Rs 229Million to impressive Rs 1000Million over 32 expert’s hours. The IREL has own bear eloquent testimony to it’s consistent export performance over the decades. IREL has build up a corporation image in the world market as a reliable supplier of beach minerals and rare earths compound.
The ISO9002 certification received by all four operating units of IREL bears further testimony to commitment of the company for equality and customer satisfaction.
The company’s pride lies in its harmonious cordial relationship with the employees for several years. The production plants of IREL have adapted highest level of safety standards along with environmental friendly technique to exploit the obediently available minerals from the beaches of eastern and western part of Indian peninsula. The management of the company is interested with a group of highly qualified and experienced directors down from different field’s technical marketing finance R&D and mining aspects of its operations.
Established as Rare Earths Company, beach sand minerals business continued to be the main stay of IREL and is expected to remain so in the current changing environment of liberalization which has promoted global participation and entry private RE entrepreneurs into the field of beach sand minerals. DIVISIONSat ional leader in the area UNITS OF IREL: of m CHAVARA MINERAL DIV. MRDC KERALA
M K MINERAL DIV. TAMIL NADU
CORPORATE OFFICE MUMBAI
OSCOM ORISSA
KERALA
KERALA
CHAVARA:Located 10 km north of Kollam, 85 km from Thiruvananthapuram capital of Kerala and 135 km by road from Cochin is perhaps blessed with the best mineral sand deposit of the country. The plant operates on a mining area containing as high as 40 % heavy minerals and extending over a length of 23 km in the belt of Neendakara and Kayamkulam. The deposit is quite rich with respect to Ilmenite, Rutile and Zircon and the mineralIlmenite happens to be of weathered variety analyzing 60 % TiO2. The Present annual production capacity of Chavara unit engaged in dry as well as wet (dredging/ up-gradation) mining and mineral separation stands at 1, 54,000 of Ilmenite, 9,500t of Rutile, and 14,000 of Zircon and 7,000t of Sillimanite. MANAVALAKURCHI (MK):Plant is situated 25 km north of Kanyakumari (Cape Comorin), the southernmost tip of the Indian sub-continent. All weather major seaports Toticorin and the nearest airport at Thiruvananthapuram are equidistant, about 65 km from the plant site. Nagercoil at a distance of about 18 km from the plant is the closest major railway station. MK plant annually produces about 90,000 Ilmenite of 55 %. TiO2 grade, 3500t Rutile and 10,000 Zircon in addition to 3000t Monazite and 10,000t Garnet based primarily on beach washing supplied by fishermen of surrounding five villages.
IREL has also mining lease of mineral rich areas where in raw sand can be made available in large quantities through dredging operation. In addition to mining and minerals separation, the unit has a chemical plant to add value to Zircon in the form of Zircon frit and other Zirconium based chemicals in limited quantities.
RARE EARTH DIVISION (UDYOGAMANDAL):-
RED is an exclusively value adding chemical plant wherein the mineral monazite produced by MK, is chemically treated to separate Thorium as Hydroxide upgrade and rare earths in its composite chloride form. It is located on the banks of river Periyar at a distance of 12 km by road from Cochin. This plant was made operational way back in 1952 to take on processing of 1400t of Monazite every year. However over the years, the capacity of the plant was gradually augmented to treat about 3600t of Monazite. Elaborate solvent extraction and iron exchange facilities were built up to produce individual Oxides, like Oxide of Ce, Nd, Pr and La in adequate purities. Today RED has built up large stock pile of impure thorium hydroxide upgrade associated with rare earths and uncreated materials. Henceforth, RED proposes to treat this hydroxide upgrade rather than fresh Monazite to convert thorium into pure oxalate and rare earth as two major fractions namely Ce oxide and Ce oxide free rare earth chloride. OSCOM (Orissa Sand Complex):-
The mineral belt running over a coastal length of nearly 18km with a total area of over 26sq.km between Gopalpur in the South and Rushikulya River in the north is estimated to contain about 230 million tons of raw sand with 20-25% heavy minerals and is expected to last for about 100 years. To exploit these natural resources, IREL has built an integrated industrial complex, unknown as OSCOM(Orissa Sands Complex)near Mathikhalo village about 8km,South of Chatrapur town(ORISSA)in the year 1984. LOCATION:
The Chatrapur sand deposit is situated along the Eastern Coast in Ganjam district of Orissa state (Top sheet no: 74A/15 and 74E/3). The area is bound on the four sides by Rushikulya River on the North-East, the coastline of Bay of Bengal on the SouthEast, Kendal River (Gopalpur creek) on the South-West and the Tampra inland lagoon and its canal system on the North-West. The coordinates of the area along the coast are as follows: DIRECTION
LATITUDE LONGITUDE
North-East
190 21’ 30”
840 03’ 23”
Central Portion 190 18’ 33”
840 58’ 36”
190 15’ 38”
840 55’ 00”
South-West
ACCESSIBILITY: Railway: The broad gauge main line of South Eastern Railway connecting Howrah and Madras passes through Chatrapur railway station at a distance of 9.0 Kilometres from the plant. The major railway station is Berhampur at a distance of22.0kilometers from the plant. Private railway siding linked with Chatrapur railway station is available up to loading platform inside the mine premises. Road: There are two all weather roads connecting plant site to NH-5 (Calcutta and Madras). One road of 4.0 kilometers length connects directly to NH-5 at Kaliabali village and the other of 5.0 kilometers length at Chatrapur. Airport: The nearest airport is at Bhubaneswar at a distance of 150 kilometers by road. From Bhubaneswar flights are available to Calcutta, Vishakhapatnam, Hyderabad, Mumbai etc.
Sea port: The nearest all weather sea port is at Paradeep approximately 250 kilometers away by road from the plant. Calcutta, Madras and Vishakhapatnam are the other major ports with suitable road and rail connection. The Gopalpur port adjacent to plant is presently working as seasonal port and is underdevelopment as an all weather port. LOCATIONAL ADVANTAGES:
The location of the factory has got many advantages like Transport, Electric, Manpower and water etc. The factory gets its raw material (sand) from the sea. The factory also gets its power and water supply easily. One more advantage is communication; N.H. Road is 5km away from the factory. THE FACILITIES AT OSCOM DREDGE AND WET UPGRADATION PLANT (DWUP)
The raw sand deposit containing heavy minerals is mined out using dredger. The sand in slurry form is pumped out to the upgradation unit which is mounted on a pontoon. Here, the heavy minerals (HM) are separated out from the lighter mineral, viz., quartz, in a battery of spiral separators, based on the specific gravity separation principle. Tailings are pumped to backfill the area mined out. This facility enables upgradation of heavy mineral content from about 20% to 90% and rejected the bulk of the gangue at the mining site itself. The dredge also helps tapping the mineral values extending below the water table up to 6 meters. HEAVIES UPGRADATION PLANT (HUP)
The product of the DWUP is pumped to another upgradation plant consisting of a battery of spirals. Here, the HM content of the sand is further upgraded to 97% plus, which is the feed to the Mineral Separation Plant.
MINERAL SEPARATION PLANT (MSP)
The product obtained from the HUP contains around 97% heavy minerals which are separated in the MSP using special techniques, utilizing the differences in the physical properties of the minerals, viz, electrical conductivity, magnetic susceptibility, surface characteristics, specified gravity grain size etc. The major separation equipments in this plant consist of electro-dynamic (high tension) separations, electrostatic separators, rare earth drum magnetic separators, floatex density separators, spiral separators, wet tables, air tables, flotation cells etc. Here the feed material is separated into Ilmenite, Rutile, Zircon, Monazite, Garnet and sillimanite. THORIUM PLANT
This plant processes thorium oxalate, produced, at the Rare Earths Division of IRE, Udyogamandal. The process is based on solvent extraction techniques to produce thorium nitrate (mantle grade), thorium oxide etc. Sodium Nitrate solution is by product of this plant. ZIRCONIA PILOT PLANT (ZPP)
A pilot plant for producing high pure zirconium oxide and various other products like calcia/magnesia/ceria/Yttria stabilized
Zirconia, other zirconium chemicals was commissioned in the year 2000. A Spray Drying Unit has been added to this plant in January, 2005 for producing non-agglomerated, narrow size range, spherical powder controlled conditions.
QUALITY & ENVIRONMENT MANAGEMENT
IREL, OSCOM has been an ISO 9001 Company since 1998 and ISO 14001 since 2002. It has an excellent system of quality management to meet the needs of the customers. The analytical laboratory is well equipped with modern sophisticated instruments and equipments like XRF, XRD, Atomic Absorption Spectrophotometer, UV-Vis Spectrophotometer, Orion Specific lon Analyser, Microwave Digester, Particle size Analyzer, pH meters, High Temperature Furnace, Thermo Gravimetry Differential Scanning Calorimeter(TG-DSC), Surface area Analyser, BOD Incubator, Precision Balances, Pycno meter, Bomb Calorimeter, Carbon Sulphur determination Apparatus, Viscometer, Flash Point meter, Moisture Analyser, Respirable Dust Sampler, round the clock weather monitoring station etc. Laboratory provides round the clock backup services to all process plants and utility services to produce quality products. The well equipped environmental laboratory of Technical Services Dept. regularly monitors effluents, stack gases & ambient air quality. PROPERTIES AND APPLICATION OF MINERALS Ilmenite:
Mainly used in the manufacture of Titanium Dioxide (a white pigment) which is used in paints, paper, rubber, textile etc. It is also the raw material for the manufacture of titanium alloys which is used in the aerospace and chemical industries by virtue of its light weight, toughness, heat and chemical resistance. Also used for the production of Synthetic Rutile.
Rutile: Used for coating of welding electrodes and also for the production of Titanium Dioxide and titanium Tetrachloride used for the production of titanium metal/ sponge.
Zircon: Used in Foundries, Ceramics and Refractories. Also used as raw material for the manufacture of Zirconium Oxide, its compounds, metal & alloys of zirconium which find application in many chemical, electronic and nuclear industries. Monazite: Extraction of thorium concentrate and Rare earth Compounds used in various chemical and electronic industries. Used for the manufacture of thorium nitrate used in gas mantles. It is also a source for thorium and uranium in nuclear reactor. Garnet: Used in the manufacture of abrasives, grinding wheels, for polishing glass/TV tubes, as sand blasting media, in water filtration, water jet cutting and in antiskid surfaces.
Sillimanite: Mainly used in the manufacture of high temperature Refractories and Insulators. USES OF BEACH SAND:
ILMENITE & RUTILE As TiO2 white pigment for: • Paints/Varnishes •
Plastic
•
Paper
•
Rubber
•
Printing Ink
•
Coated Fabric Textiles
•
Cosmetics, Sun Protection Creams
As Titanium sponge/Metal: • Different Alloys •
Aerospace Industry
•
Surgical Equipments
•
Electrical Turbine Tubing
•
Bullet Proof Vests.
Welding Electrodes ZIRCON:
•
Ceramics
•
Foundry
•
Refractory
•
Computer Monitors
•
Television Screen
•
Yttria Zirconia for Oxygen Sensors
•
Cutting Tools
•
Scratch Resistant Bracelets
•
American Diamond
•
Nuclear Reactors in Alloy Form
SILLIMANITE: • High grade refractory bricks. •
High alumina refractory.
•
Steel & Glass Industries.
•
Cement Kilns.
•
Heat Treatment furnaces etc.
GARNET • Sand Blasting •
Abrasives,
•
Water Filtration
•
Water jet cutting
•
Cleaning of casings/pipes in petroleum industry
•
Oil wells
As Powder For: • Ceramics •
Glass Polishing and Anti Skid surfaces
•
Polishing of picture tubes
SAFETY & TRAINING
OSCOM has a fully fledged safety & Training Department to implement the safety &training policy of the company & to comply whit the statutory requirement in coordination with various departments. Safety and Environmental Committee is constituted by giving due representation to workmen and the committee deliberates regularly on various safety & environment issues. Department takes active role in arranging housekeeping competitions, display of safety posters, slogans, etc. Safety weeks are celebrated to promote the safety awareness among the employee. Safety manual are printed in regional languages and distributed to all employees. Safety audit are also conducted regularly. HEALTH PHYSICS UNIT-BARC
A Health Physics Unit of Bhabha Atomic Centre is located at site to look after health physics aspects of the employee.
R&D AND TECHNICAL SERVICES
IREL is looking forward of synchronizing the present with the future development. Mineral beneficiation and chemical process development laboratories are actively engaged in process optimization and development of new competitive products, such as Yttria & ceria-stabilized Zirconia for special application in structural ceramics, electronic components and making artificial diamond. R&D Mineral processing Laboratory is equipped with an array of mineral beneficiation &value addition equipment such as: 1. Moving bed plasma dissociation furnace and static plasma furnace for R&D studies on melt separation of metalized ilmenite into titanium slog and iron metal. 2. Plasma furnace for dissociation of zircon mineral into zirconium oxide and silica. 3. Rotary tubular furnace for studies on reduction and metallization of silica. 4. Floatex density separator and spiral test-rig separator for mineral upgradation studies. 5. Flotation cell for studies on flotation of minerals like sillimanite, monazite etc. 6. Electrostatic and magnetic separators, isodynamic magnetic separators for mineral beneficiation studies. R&D studies have contributed immensely for optimizing the flow sheets of DWUP, HUP and mineral separation plan for achieving enhanced production and high level of recovery.
TECHNICAL LIBRARY:
The technical services department maintains a Library to disseminate technical information to scientific and plant operating personnel. ECOLOGY: Restoration of natural environment after mining is being carried out from 1984 onwards. Afforestation programmes are being successfully implemented in mined out areas. Various species of tree like Casuarina, Cashew, Cassia, Fistula, Eucalyptus, Sarca indica etc. are planted in the plant premises, mined out areas and housing colony. IREL is taking steps to protect the coastal line and is working in laison with several concerned expert agencies in this regard and a systematic plantation programme is being carried out in order to have a thick green belt along the Sea Coast. Experimental plantation with species such as jojoba and cinnamon are also being tried at site. EMPLOYEE WELFARE
OSCOM Unit provides direct employment to more than 1200 persons besides indirect employment to few hundreds. The welfare of employees and the members of their family are given utmost importance to have an overall healthy growth. Medical services a with health care centre provide preventive, curative and promotional health care to employees, members of the family and also to the people of neighboring villages. Housing colony provided with English medium and Local Language Schools, Recreation Centre, Play Ground, Marketing Centre etc. makes the environmental lively.
QUALITY, ENVIRONMENT, OCCUPATIONAL, HEALTH & SAFETY POLICY:
As a leading producer of beach sand minerals and association value added products. We demonstrate continual improve in Quality, Environment, Occupational health & Safety Performance. We are committed to Customer satisfaction Optimal utilization of resources, prevention & control of
pollution and minimization of risk. Comply with relevant legal and other requirements Set & review the objectives and targets periodically Improve awareness among all employees and contract personnel through training. This policy shall be made available to our employees, public and all interested parties working for or on behalf of our organization. VISION To be a leading supplier of beach sand minerals from Asia by supplying 10 % of the world demand for beach sand minerals over the next 7-10 year. It would be achieved by maximum utilization of existing capacity, new capacity addition, and capturing major portion of the incremental growth in the global TiO2 feedstock demand and by developing competitive value added Zircon, Rutile, Sillimanite & Garnet products that make handsome contribution to revenue & profits.
To become the preferred rare earth products supplier (Producer/marketer) for domestic customer to ensure long-term sustenance and profitability of rare earths business and to achieve adequate efficiency in Monazite processing as long as it is necessary worthwhile. MISSION
To harness beach sands in an environmentally and socially responsible manner for efficiently producing minerals and their traditional and innovative value-added products of world-class quality, that are used to make increasingly superior/novel products required by customers. To play a dominant role in developing domestic rare earths market by producing and/or marketing the quality value-added products to realize maximum potential of rare earths in a range of applications. To built a professional, creative and committed workforce and nature an environment that fosters learning, sharing and development. OSCOM governed under various Act & Rules: Mines Act: 1952 Mines and Mineral development Act: 1957 Mines concessional Rule Mines conservation & Development Rule Automatic energy factories Rule: 1996
Various Department of OSCOM:
Production Department: Mining, Mineral separation plant, Thorium plant.
Service Department: Utility central workshop, central store Auto cell, Fire station, security, medical Health physics unit, Ware housing
Administration Department: Human Resources, internal audit, purchase Market.
Technical& Research Department: Safety and Training, Technical Service Project cell VISION 2010:
The vision 2010 meet was held at Munnar from Date 13/05/06 to 15/05/06 CMD, Directors, Unit Heads along with their Dept. Heads of production, projects, finance, maintenance and head to discuss plan programme ,production schedule, raw material planning and constraints to achieve goal. The goal was set as: To become a formidable in the field of
Titanium feed stock industry. Provide thrust to value addition to minerals and sophisticated Rare Earths (RE) products. Align with Dept of Atomic Energy
(DAE) Nuclear Program and enhance supply of nuclear materials.
Achieve Rs.1000 corer turn over by
2010. To meet above organizational goal, the targeted deliverable was identified as: 1. Enhance combined production of all minerals up to 1million ton\annum ilmenite and associated minerals. 2. Produce 150 ton of V308 from sources. 3. Continue production of N-THo2 from sources. 4. Keep a share in the rare earths market. CORPORATE OBJECTIVE:
1. To optimize the extraction of heavy minerals 2. To enable the company in optimum utilization of resources. 3. To maintain financial soundness of the company by managing the financial operation in accordance with good commercial utilities practices. 4. To develop appropriate commercial policy leading to remunerative tariffs and minimum receivables. 5. To function as responsible citizen and discharge social responsibility in respect of environmental protection and rehabilitation. 6. To adopt human resource development policy trading to creation of a team of motivated and component power professionals. 7. To develop research and development for achieving improved plants reliability. 8. To Align towards strategic activities of DAE. FINANCE:
The OSCOM UNIT OF IREL had capital out lay of approx Rs 8,636.50 lakhs. The initially investment made in 2008-2009 is Rs
1,258.51lakhs.The investment made from various shares amount to Rs 43,609.81 lakhs. However, OSCOM has been running profit since it went into commercial production. The accumulated profit as on 31.3.2009 was about
22,875.78lakh as the provision for tax as on 31.3.2009 was Rs 7,318.219 lakhs making accumulated profit to RS.15,557.49 lakhs. MARKET:
IRE meets the demands of advanced marketing like USA, Canada, France, Germany, Japan and many others in addition to domestic market like ESAB India Ltd, DNH, Exports from IRE(OSCOM) have increased over the same few years because its products stand up to international quality standard.
PRODUCTS PRICE(Rs./MT) Rutile Zircon Ilmenite Sillimanite Garnet
41,000.00 45,000.00 5,000.00 11,000.00 3,750.00
TONNES PER ANNUM 10,000 8,000 2,20,000 30,000 10,000
SALIENT FEATURES: 70% of employees are localities of Ganjam district and rests
are from other part of the country.
OSCOM take local villagers as contract basis employee for
gardening work planted over the mine out area and loading the railway track regularly. IREL OSCOM provides school facility for Oriya and English to the local villagers. OSCOM provides school facility for Oriya and English to the local villagers. AREA OF OPERATION : Mining of beach sand minerals Separation of six heavy minerals Value addition on Zircon Value addition on Hematite Chemical processing on magnetite, the concentration reel Production of ADU/NG thorium nitrate
IREL OSCOM EXISTING UNIT
DREDGE AND WET UP GRADATION PLANT (DWUP)
TECHNICAL SERVICE
HEAVIES UP GRADATION PLANT (HUP)
MINERALS
SUPPLEMENTARY
SEPARATION
IREL OSCOM
MINING PLANT
PLANT (MSP)
THORIUM PLANT
BOILER ZIRCONIUM PILOT PLANT (ZPP)
DREDGE & WET UP GRADATION PLANT (DWUP): Activities: Dredging Clearing and sizing Rejecting unwanted minerals and up gradation
Capacity: Sand mining capacity in slurry form is 500 meters
per hr with dredging Depth of around 6mts. Machineries: Dredge consists of
Bucket wheel Cutter used for cutting the sands Ladder lifter-Helps to place the cutter Side winch Spuds Man pump
Trammel:
It is a revolving screen used for removing unwanted materials Specification 2557 Pd Head feed bin: Used to maintain sand and water ratio Used to store slurry and uniform supply Capacity 21L cubic mt Spirals: It is an upgradation device totally made in fiber glass.
Stages:
Rougher, Sub rougher, cleaner, releaser consist of 144, 96, 72 spirals Respectively.
SUPPLEMENATRY MINING PLANT (SMP): As like DWUP it is another plant for mining with a capacity
of 150 times/hr. It installed in OSCOM in 2002 unlike DWUP its dredge unit
is only floating unit where as its upgradation unit is fixed on land. The output of DWUP and SMP transfers to another
upgradation plant known as Heavies upgrading plant (HUP) through pumps. HUP is installed nearby mineral separation plant (MSP) only
upgrade heavy minerals up to 97% and send that to MSP. Upgradations of minerals are possible only of having higher
specific gravity as compare to rejected minerals known as quartz.
MINERAL SEPARATION PLANT (MSP):
The heavy mineral concentrate obtained from dredge and wet concentrator plant is fed to the concentrator upgradation plant (CUP) which consists of several circuits of spirals and wet tables for further upgradation of heavy minerals to 95 to 97%. Thereafter the CUP concentrate is fed to MSP for separation of individual minerals. The separation of individual minerals is done based upon their physical properties. The heavy mineral concentrate mixture which is fed to MSP contains Ilmenite(65-68%), Rutile(2.5-3%), Zircon(2.5-3%), Monazite(1.5-2%), Sillimanite(8-12%) and
Garnet(12-16%). The physical properties of the above minerals are as follows:
PRODUC T
PROPERTIES
SPECIFIC GRAVITY
Ilmenite
Conducting and strongly magnetic
4.54
Rutile
Conducting and non-magnetic
4.25
Non-conducting and nonmagnetic Non-conducting and weakly Monazite magnetic Non-conducting and nonSillimanite magnetic Zircon
Garnet
Non-conducting and moderately magnetic
4.68 5.25 3.25 4.11
The major separation equipment consists of High tension separators, Electro plate separators, Electro screen separators, Induced roll magnetic separators, Highly induced roll magnetic separators, Lift roll magnetic separators, Cross belt magnetic separators, Attritioners, Conditioners, Froth floatation cells, Spiral concentrators, Wet tables, Air tables and hydro cyclones etc. In addition, a number of dryers are provided to eliminate moisture in the feed concentrate and products from wet separators and also to heat dry solids before high tension separators.
Mechanical equipments in MSP: Belt conveyers Screw conveyers Dryers Pumps Conditioners Drug conveyers Blowers Wet tables Attritioners Bucket elevators Vibrating screen Air tables Floatation cells
NEW THORIUM PLANT (NTP):
The plant was set up at OSCOM in 1992 and from very next year it started its production. Capacity of plants: 220 ton per annum of thorium nitrate Raw material : Thorium oxalate from RED, alloys Production :Thorium Nitrate and thorium oxide Main use of product • •
Thorium nitrate in marketing of gas material Thorium oxide as a shield in atomic power station
Process:
1. LEACHING: Thorium oxalate + caustic lye=Thorium hydroxide 2. DISSOLUTION: Thorium hydroxide + Nitric acid=Thorium nitric solution. This method is used for removing the rare earth impurities. 3. SOLVENT EXTRACTION : a) The feeds solution is processed to separate Thorium and rare earth in continuous counter current solvent extraction batteries. b) Clean solvent coming out of stripping unit of solvent extraction system has small unstrapped thorium and solvent
c) decomposition product with it. It is possible with series of washes like alkaline water, process water and acidified water. 4. THORIUM RECOVERY CONTAINS 2 STEPS: a) Pure Thorium nitrate solution obtained is concentrated by evaporates in 2 stages. b) From the above Thorium nitrate crystals are recovered by crystallized last stage of plant is systematic handling of waste as per the guidelines of atomic energy regulatory board and Orissa state pollution control board.
Materials used for the production of Thorium Nitrate are as follows: Caustic lye(NaoH) Nitric Acid(HNO Soda Ash Hydrogen peroxide(H2O2) TBP(Tri-Butyl phosphate) (C4H9O)3PO Kerosene Power
Main equipments in Thorium Plant : Filter press equipments Mixture settles Crystallizer Centrifuge Tank and agitation Technical Services:
The main function of technical services department is as follows: Process control Quality control Research and development Process Control:
Collection of feeds in various stages of processing and after analysis forwarding a report on for being better quality production
as well as control whole process. This work is done by shift wise in respect of DWSP, SMP, MSP and TP.
Quality Control: Independent collection analysis are reporting of find MSP products samples at ware houses for quality control analysis and reporting of find Thorium plant product samples for quality control analysis of chemical received are central stores as per purchase order. Research and Development:
Mineral processing: various mineral processing studies are carried out times to times with available labs, more equipment for improvements of quality and quantity of products, feasibilities studies, optimization of process parameters, developmental studies, equipments such as available for conducting studies. ZIRCONIA PILOT PLANT (ZPP):
In this plant one of the fine products of MSP named Zircon,is further process to a value added product known as high pure Zirconium oxide and stabilized Zircon oxide. Capacity of same plant is 3.5tones/annum process Zircon.
TECHNICAL SERVICES DIAGRAM
TECHNICAL SERVICES
R&D CHEMICAL & MINERALS
QC & PC SAMPLES OF MSP & DWUP
QC & PC SAMPLES OF TP
ZPP
ENVIRONMENTAL
AND POLLUTION MONITORING
INCOMING MATERIAL ANALYSIS
PROCESS OF ZIRCONIA PLANT OPERATION:
ORGANIZATION STRUCTURE OF IREL:
ORGANIZATIONAL STRUCTURE OF (OSCOM) UNIT (ORISSA SANDS COMPLEX)
PRODUCT PROFILE
MINERALS: ILEMINITE: Brown Ilemnite Ilmenite 'MK' Grade Ilmenite 'OR' Grade Ilmenite 'Q' Grade 1. Mainly used in the manufacture of Titanium dioxide (a white pigment) this is used in paints, rubbers, textiles etc. 2. It is used as raw material for manufacture of Titanium alloys
which is used in aerospace and chemical industries. 3. Used for production of synthetic Rutile. GARNET:
Garnet 'MK' Grade (Normal) Garnet 'OR' Grade 1. It is used in the manufacture of abrasives, grinding wheels, for polishing glass/TV tubes ,as sand blasting media, in water filtration ,water jet cutting. MONAZITE:
'MK' Grade 1. Extraction of Thorium concentrates and earths compounds used in various chemical and electronic industries. 2. Used for the manufacture of Thorium Nitrate used in gas mantels. 3. It is also a source for Thorium and Uranium in nuclear reactors.
RUTILE: Rutile 'MK' Grade Rutile 'OR' Grade Rutile 'Q' Grade 1. It is used for coating of wielding electrodes and also for the production of Titanium Dioxide and Titanium Tetrachloride used for the production of Titanium material\sponge. SILLIMANITE: Sillimanite 'OR' Grade Sillimanite 'Q' Grade 1. It is mainly used in the manufacture of high temperature refractory and insulators. ZIRCON:
Zircon Sand 'MK' Grade Zircon Sand 'Q' Grade Zircon 'OR' Grade 1. It is used in foundries,ceramics and Refractory 2. It is used as the raw material for the manufacture of zirconium oxide, its compound metal and alloys of Zirconium which find application in many chemical electronic and nuclear industries. ZIRCON FLOUR (Zirflor):
1. Used in the foundries for high temperature castings and for manufacture of Zirconium Opacifier. ZIRCON OPACIFIER:
1. It is used as an opacifier in ceramics.
UNITS
PRODUCT
CAPACITY
ORISSA SANDS
ILMENITE
2875T/annum
COMPLEX
RUTILE
31,000T/annum
(OSCOM)
ZIRCON
36,000T/annum
SILLIMANITES
86,000T/annum
GRANET
65,000T/annum
PRESENT PRODUCTION CAPACITY:
ILMENITE--------------------------------------2,20,000 TPA RUTILE------------------------------------------10,000 TPA ZIRCON------------------------------------------8,000 TPA SILLIMANITE----------------------------------30,000 TPA GARNET-----------------------------------------12,000 TPA THORIUM NITRATE-------------------------225 TPA ZIRCONIA---------------------------------------3.5TPA RARE EARTH: Rare Earth Chloride:
Widely used in the manufacture of much metal used for making lighter flints in the production of catalayst for cracking petroleum in the manufacture of metallic soaps which find catalyst for cracking petroleum in the manufacture of metallic soaps used as dries in the paints as a starting material for the production of pure rare earths and earths compounds for the removal of organic impurities and decolourisation of paper mill effluents and in the manufacture of special ferrous castings.
Rare Earth Fluoride : Used in the carbon industry to increase the intensity for glass polishing in optical glass composition and refractory materials. Cerium oxide: Used in the carbon industry to increase the intensity for glass polishing in optical glass composition and refractory materials. Trisodium phosphate: Widely used as decaling and degreasing agent in hollers as in filler in the manufacturer of detergent powders to improve classification of sugarcane juice and to decrease the quality at molasses also used in textile,paper and food industry for cleaning. Thorium oxide: Used in the gas manufacturing industry and for starters in fluorescent tubes and for making fuel elements nuclear reactors. INTEGRATED MANAGEMENT SYSTEM AT IREL(OSCOM) ISO 9000-2001 SINCE 1998(Quality) ISO 14001-2004 SINCE 2004(Environment) OHSAS 18001-1999since 2005(Occupational health and
Safety performance) QUALITY SYSTEM(OSCOM) To get certification on OHSAS 18001-1999 To get certification on environment system 14001-2004(New
Unit)
SPECIFICATION OF OUR PRODUCT MAJOR
ILMENITE FeTiO2
RUTILE TiO2
ZIRCON ZrSiO2
SILLIMANITE Al2SiO2
GARNET Fe3Al2
Tio2
50.50
94.50
0.70
0.30
1.3
FeO2
34.04
Fe2O3
12.43
COMPOSITION
ZrO2 Al203
0.45
Cr2O5
0.48
V2O5
0.23
P2O5
0.002
MnO1
0.51 0.04 0.64
CaO1 MgO1 Th,ppm
27.90 1.10
0.30
0.4
0.90
64.25
2.0 56.5
3.50 19.30 0.02
0.06
0.10 2.80 6.80
43 26 0.71 4.54 2600
0.90 4.25 2500
32.10 4.68 2800
38.0 3.25 1950
36.33 4.11 2200
HARDNESS
2850 5-6
2800 6-6.5
3000 7.5
2050 6-7
2300 6.57.5
COLOR
Black
Black
Color
White
Deep Red
U,ppm SiO2 SPECIFIC BULK DENSITY Kglm3
MAN POWER AT A GLANCE
In the ultimate analysis, it is the human resource which converts the natural resources into productive substance, thus fulfilling the objectives of any organization and achieving the development of any economy. OSCOM is employing about 1036 persons as its permanent employees as on 31.05.2009 consisting of 581 persons in technical and 455 persons as non-technical groups. The total manpower has been classified as permanent and temporary. Apart from this company is utilizing labors. STYLE OF MANAGEMENT:- Primary, the organization of OSCOM believes in the democratic style of management. However, in many occasions, the organization also adopts the participative style of management . SECTION WISE MAN POWER STATEMENT CATEGORY-WISE MAN POWER STATEMENT SL.NO
CATEGORY
TOTAL
TECHNICAL
NONTECHNICAL
1 2
OFFICERS
179 2
131
48 2
67
42
25
3 4 5 6 7 8 9
GETS/MGMT TRAINEES DY.OFFICERS/ DY.ENGINEERS STAFF SKILLED WORKMAN UNSKILLED SECURITY GUARDS HELPER (SANITATION) GRAND TOTAL
22 408
22 408
288 46
288 46
24
24
1036
581
455
TRADE UNION :-
At present, Rare Earths Employees union is the one and only trade union operating in the organization of OSCOM. It is affiliated to INTUC. It is a recognized union. The union was established on 1 st May 1980. This union has been registered under the Trade Union Act, 1926.It was registered on 11 th September 1980 under the name and style of Rare Earths Employees having registration number of 1298/80.90% of the employees are member of the union. Arun Kumar Nahak as the president of the existing union. Thus, there is always internal leadership so far as the officers of the union are concerned. The activities of the union are confined within the organization only. ENVIRONMENTAL POLICY:-
OSCOM has its own pollution control. The organization also has its own environment development policy. With regard to environment development, OSCOM has received different awards trophy in the form of shield from different bodies. OSCOM has also received the inter unit best environmental/greenery award from the CMD (Chairman cum Managing Director). MILESTONES OF IREL
1950: IREL is incorporated as a private company jointly owned by the GOI & Govt. of Travancore, Cochin. 1952: Production commences at RED, alwaye Late Prime Minister Shri Jawaharlal Nehru dedicates RED to the Nation. 1953-55: Thorium Plant, Trombay owned by DAE is commissioned by IREL.
1963: IREL becomes a full-fledged Govt. undertaking under DAE . 1965: MK and Chavara Plants are taken over from Travancore Minerals Ltd. Production at MK and refurbishing of Chavara Plant commence. 1966: IREL completes Uranium Mill project at jaduguda, hands over to UCIL. 1967: IREL takes over H&W (Travancore) plant at MK. Mineral Division formed comprising Chavara & MK. 1970: Refurbished Chavara Plant goes into production. Capacity of MK plant is expanded.\
1973: Pilot plant is set up for separation of individual Rare Earths. 1977: Commencement of OSCOM project . 1979: Pre-concentrator plant is commissioned at MK . 1985: Modernization and Helium and Uranium Recovery project (MOHUR) commences at RED. 1986: New DWC Plant commences at MK, hero PROJECT Alwaye is commissioned, Production is started at OSCOM. 1987: MOHUR is commissioned, New DWC project commences at Chavara, New Thorium Plant commences at OSCOM. 1988: Commencement of CUP at OSCOM and MK.
1990: MRDC is launched at Quilon. HERO plant is commissioned at Alwaye. DWCP at Chavara, CUP at OSCOM and MK are commissioned. 1990-91: IREL SIGNS MOU with Government of India. Diversify Plant project (DPP) starts trial production for augmenting Cerium Hydrate, Didymium Carbonate at Alwaye. 1993-94: Co-generation plant is commissioned at RED.NTP starts commercial production. 1994-95: Ilmenite quality is enhanced in Chavara and OSCOM, MRDC. Quilon is fully functional. 1995-96: RED gets ISO9002 Certification. 1996-97: Microzir plant is commissioned in Chavara 1997-98: OSCOM gets ISO9002 certificate. PRYNCE 95% Nd2O3 is commissioned at RED. Thorium plant at Trombay is closed. 1999-2000: MK and Chavara get ISO9002 certificate. Corporate plan is approved. IREL starts paying the Government loan. Additional Recovery of Rutile and Zircon project is implemented at MK. Joint venture proposals with SAL, AUSTPAC Resources are processed.
DEPARTMENT CODES
1. ADMINISTRATION 2. HRM SERVICES 3. ESTATE 4. MEDICAL 5. KOLKATA OFFICE 6. PURCHASE 7. STORES 8. MARKETING 9. FINANCE 10. INTERNAL AUDIT 11. SECURITY 12. DRY MINING TRAINING 13. DWUP (MINING) 14. MSP 15. SRP 16. A.R.P
17.PROJECT 18.TECHNICAL 19.INSTRUMENTATION 20.MECHANICAL 21.ELECTRICAL 22.CIVIL 23.TRANSPORT POOL 24.AUTOPOOL 25.UTILITY 26.BOILER 27.THORIUM PLANT 28 .SAFETY & 29.MIS 30.BHIMILI PROJECT 31.BBSR OFFICE 32.FIRE
OSCOM Environmental Policy We are a leading producer of beaches and minerals and associated value added products committed to demonstrate excellence in environmental performance on a continued basis.
Objectives:
Pollution control and legal complaint and endeavor for continual improvement towards pollution prevention and compliance with applicable environment regulation. Resource Conservation:
Pursuit of technological excellence and monitor process/ operational practices to minimize source consumption in particular in raw sand, water, furnace oil, electricity and control waste generation. Training and Competence:
Strength awareness, skills and competence of our employees and contractor personnel to care for prevention of the environment. We shall make this policy available to all over employees and interacted party.
Chapter 2 HR policy of company
INTRODUCTION TO HR: During the past three decades the Personnel Function has witnessed dramatic changes. Widespread usage of term ‘HRM’ in place of personnel function is itself symbolic of this change. In the days gone by, line organizations used
to be happy with having a middle level manager head the personnel department, whereas today most organizations have General Managers, Vice President’s and Director’s taking care of this activity. The personnel function has acquired a unique status and reputation in almost all service sectors including banking, finance, insurances, telecoms, software, hotels, apart from the traditional manufacturing and engineering fields. Personnel people are the new corporate heroes assuming positions of prestige and importance. The ‘HR’ function has enriched itself, over the years, by including within it a ‘Development’ dimension and thus moved itself from a ‘Reactive’ and ‘Maintenance-oriented’ function to a ‘Pro-Active’ path breaking. Development oriented function. Today personnel people talk of linkages with corporate planning, HRD approach to Industrial Relations, HRD Climate and Budgets, Development Oriented appraisal systems, multiple reward mechanisms, reengineering work cultures and ethos, etc. Those handling HR functions are being increasingly viewed as ’ CHANGE AGENTS.’ Human Resource Development (HRD) in the organization context is a process by which employees of an organization is helped in a continues and planned way. Two emphases are involved in the concept of HRD. 1. Persons working in organizations are regarded as valuable resources implying that there is a need to invest to time and effort their development. 2. Human resources do not merely focus on employees as individuals but also other human units and process in the organization. Many organizations have set up new departments known as “HRD” departments which have done remarkable work in attempting to find out new way developingemployeecompetencies,peopleneedcompetencies,knowledge,attit ude,skills to perform tasks higher degree and quality of performance of tasks require higher level of degree of skills without continues development of competencies in people or organization is not likely to achieve its goals, component and motivated employees are essential for organizational survival, growth and excellence. The employee competencies are developed or sharpened through policies and practice of an organization.
In this chapter there is necessity of HRM department in an organization. The structure and duties and responsibility of different department and also the policy of OSCOM are discussed. Birth of HRM Department:
Production is the combined efforts of five agents as Land. Labour, Material, Management and Enterprise. Efficient manpower is essential f or the proper coordination of these without which production cannot be carried out. Organization need people and function only through them. So human resource is the most important one. This has lead to the development of a separate department named as ’HRM’ Department. It deals with all the HR activities like Industrial relation, grievances handling, industrial disputes, trade unions functioning, disciplinary action, dismissal, discharge etc. Growth of HRM Department:
HRM in India is a recent phenomenon which develops due to gradual growing of industrialization and the statutory obligations under the Factories Act 1948, the Plantation Labour Act 1951 and the Mines Act 1952.For the welfare of workers and the welfare office is created in every organization by these Acts. Structure of the HRM Department of IRE Ltd:
People who are gathered to work within common aim and objective required a well defined structured through which they interact and get coordination with each other to form a team. The entire structure of the HRM Department of IRE Ltd unit is headed by GM (HRM).He is not the apex of HRM department and the ultimate authority in personnel administration. He also looks after the estate and Bhubaneswar office. Besides there is a senior Administration officer for Estate and
Administration officer for Bhubaneswar office cum guest house.
The manager (personnel), utility is assisted by a senior assistant and an assistant.
The manager (personnel), unit headquarters is also the vigilance officer of the unit. He is assisted by senior personnel manager, chief security officer and Dy. Head officer.
Senior personnel officer is assisted by 2 senior assistants,4 senior
timekeepers and assistants.
Senior administrative officer, estate, estate is assisted by an office assistant, helpers.
Administration officers, Bhubaneswar office is assisted by a driver and security guards.
The manager (personnel), mining and MSP is assisted by a senior assistant and assistant.
Authority and Responsibility of the functional heads of HRM Departments: 1. General Manager (HRM):
He is the head of the department. He is looking after the general administration of the unit, estate and the Bhubaneswar office and guest house. 2. Manager (personnel) utility:
He is to look after the smooth management of manpower of boiler plant, chemical, ASP, SRP and NTP.
3.Manager(personnel)mining and MSP:
He is to look after DWUP and MSP personnel. Both the manager of utility and MSP deals with the matters relating wage and salary
administration, workers participation in the management and other day to day industrial relation functions of the concerned plants.
4.Manager(personnel)unit head quarters:
He is looking after the administration establishment, tales, telephone, industrial relations, time office, welfare office, security section, office correspondence and promotion of official language Hindi is the unit. He is the unit of vigilance officer. 5.Senior Personnel Officers:
He is handling the time officer and deal with recording and maintenance of attendance register of employees. He is looking after the welfare section and handless all the matters relating to the fringe benefits implementation of suggestion scheme. He is dealing the work and payment of contract labour. 6.Chief Security Officer:
He is handling the security section and looking after the safety and security of the plant and colony. He is also looking after the fire section which is meant for saving the life and property of the unit. 7.Dy.Hindi Officer:
He is in charge of promotion and use of official language Hindi in the unit level. It is being promoted through competition, discussion, debate and easy writing. 8. Senior administrative officer estate:
He is looking after the colony quarters unit guest house, estate. Land acquisition and decoration etc. 9.Administrative Officer, Bhubaneswar Office:
He is handling the Bhubaneswar office. He is looking after the guest house meant for the IRE Ltd, Mathikhalo employees on official duties.
HUMAN RESOURCE MANAGEMANT CHART OF IREL:
Hierarchical Statement of manpower in IREL,OSCOM
HR POLICY AND PRACTICE IN IRE: Human Resources play a very crucial role in any organization. Human Resource department solely responsible for bringing in best and most suited workforce in an organization. It has to be most strategic and has to do with four competencies. It has to play more emphasis areas related to capabilities and competencies helping the organization to reshape it. It has sale so as to fulfill the aims and objectives of the organization for which it has been future expectation and demand.
HRM Department in OSCOM: Department Profile: Human resources department is a professionally managed department of India Rare Earth Limited looking after the following major factors: ♦ Personnel ♦ Administration ♦ Estate and Township Administration factors ♦ Industrial Relation ♦ Legal ♦ Security ♦ Time Offence ♦ Welfare ♦ Establishment ♦ Public Relation The above functions comprises of following activities: ♦ Domestic enquiries/Disciplinary matters ♦ Court Matter ♦ Estate, Colony and Guest House Administration ♦ Processing of Leave, Attendance, and Allowance etc. ♦ P.F Gratuity, Workmen compensation, Suggestion Scheme ♦ Contract Labour ♦ Canteen
♦
Dealing with Establishment matters such as LIC, Medical, HBA, Hire purchase loans etc.
Promotion and increment orders. ♦ Processing of terminal order such as pension, gratuity, GSLIC etc. ♦ Looking after security of plant colony ♦
TO BE A SUCCESSFUL HR PERSON ONE SHOULD HAVE: Be an all-rounder with hands on experience the right exposure and
good team management skills as integral traits of his/her personalities. Relevant exposure skills and visions. Ample knowledge to take up daunting task to fulfill the work or goal
of organization.
NEED FOR HR POLICY AND PRACTICE: They serve as a road map for managers. It is a plan of action that leads towards Goal and objective of the organization .Generally the HR policy tend to 1. Enables organization to fulfill their main objectives. 2. To ensure that the employers are well informed about to policy. 3. To provide such condition of employment so as to unable them to develop a sense of sincere belongingness and dedication to carry out their duties effectually. 4. To provide security to the employment. 5. To provide fair and adequate wages.
NEED FOR HR POLICIES:
1. To ensure consistence treatment to all persons throughout the organization to which favoritism and discriminating its elements. 2. It helps to put the right man in the right place by careful selection.
HR POLICY COVERS THE FOLLOWING: 1. Recruitment 2. Selection 3. Training and Development 4. Man Power Planning 5. Performance Appraisal 6. Policy on Industrial Relation 7. Employee Benefit
Chapter 3 Performance Appraisal
PERFORMANE MANAGEMENT:Performance Management is a means of getting better results from the organization, team and individuals by managing performance in line with organizational strategy. It requires: ♣ Clear targets and goals ♣ Managers and employees priorities ♣ Measuring actual performance against agreed goals ♣ Identifying and rectifying performance problems
Definition:Performance Management is the process of defining what employees should be doing, ongoing communication during the year, linking of individual performance to organization needs, and evaluation of appraising the performance.
Overview of Performance Management:-
Introduction of Performance Appraisal: •
Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his job.
•
Performance appraisal is the identification, measurement and management of human performance in an organization and is the result of the individual competencies, efforts and motivation to excel.
Objectives of Performance Appraisals
Types of Appraisal Methods When it has been decided who will evaluate, when, and on what basis, the technique to be used will be selected. A number of approaches will be described here. There are several ways to classify these tools. The three categories used here will be ♣
Individual evaluation methods
♣
multiple person evaluation methods
♣
360 Degree Appraisal methods.
Individual evaluation Methods There are five ways to evaluate an employee individually. In these systems, employees are evaluated one at a time without directly comparing them with other employees.
•
•
•
Graphic rating scale: The most widely used performance evaluation technique is a graphic rating scale. In this technique, the evaluator is presented with a graph and asked to rate employees on each of the characteristics listed. The number of characteristics rated varies from a few to several dozen. A factor analysis of the results indicates that only two traits were being rated: quality of performance and ability to do the present job. The ratings can be in a series of boxes, or they can be on a continuous scale (0-9) or so. In the latter case, the evaluator places a check above descriptive words ranging from none to maximum. Typically, these ratings are then assigned points. For example, outstanding may be assigned a score of 4 and unsatisfactory a score of 0. Total scores are then computed. In some plans, greater weights may be assigned to more important traits. Evaluators are often asked to explain each rating with a sentence of two. Forced choice: The forced-choice method of evaluation was developed because other methods used at the time led to a preponderance of higher ratings, which made promotion decisions difficult. In forced choice, the evaluator must choose from a set of descriptive statements about the employee. The two-, three-, or four-statement items are grouped in a way that the evaluator cannot easily judge which statements apply to the most effective employee. Typically, personnel specialists prepare the items for the form, and supervisors or other personnel specialists rate the items for applicability; that is, they determine which statements describe effective and ineffective behavior. The supervisor then evaluates the employee. The Personnel Department adds up the number of statements in each category (for example, effective behavior), and they are summed into an effectiveness index. Forced choice can be used by superiors, peers, subordinates, or a combination of these in evaluating employees. Essay evaluation: In the essay technique of evaluation, the evaluator is asked to describe the strong and weak aspects of the employee’s behavior. In some enterprises, the essay technique is the only one used; in others,
the essay is combined with another form, such as a graphic rating scale. In this case, the essay summarizes the scale, elaborates on some of the ratings, or discusses added dimensions not on the scale. In both of these approaches the essay can be open ended, but in most cases there are guidelines on the topics to be covered, the purpose of the essay, and so on. The essay method can be used by evaluators who are superiors, peers, or subordinates of the employee to be evaluated. •
•
Management by objectives: Another individual evaluation method in use today is Management by Objectives (MBO). In this system, the supervisor and employee to be evaluated jointly set objectives in advance for the employee to try to achieve during a specified period. The method encourages, if not requires, them to phrase these objectives primarily in quantitative terms. The evaluation consists of a joint review of the degree of achievement of the objectives. This approach combines the superior and self-evaluation systems. Critical incident technique: In this technique, personnel specialists and operating managers prepare lists of statements of very effective and very ineffective behaviour for an employee. These are the critical incidents. The personnel specialists combine these statements into categories, which vary with the job. Once the categories are developed and statements of effective and ineffective behaviour are provided, the evaluator prepares a log for each employee. During the evaluation period, the evaluator “records examples of critical (outstandingly good or bad) behaviours in each of the categories, and the log is used to evaluate the employee at the end of the period. It is also very useful for the evaluation interview, since the evaluator can be specific in making positive and negative comments. The critical incident technique is more likely to be used by superiors than in peer or subordinate evaluations.
•
Checklists and weighted checklists: Another type of individual evaluation method is the checklist. In its simplest form, the checklist is a set of objectives or descriptive statements. If the Rater believes that the employee possesses a trait
listed, the Rater checks the items; if not, the Rater leaves it blank. A rating score from the checklist equals the number of checks. A more recent variation is the •
•
Weighted checklist : Supervisors or personnel specialists familiar with the jobs to be evaluated prepare a large list of descriptive statements about effective and ineffective behavior on jobs, similar to the critical incident process. Judges who have observed behavior on the job sort the statements into piles describing behavior that is scaled from excellent to poor (usually on a 7-11 scale). When there is reasonable agreement on an item (for example, when the standard deviation is small), it is included in the weighted checklist. The weight is the average score of the Raters to the checklist’s use. The supervisors or other Raters receive the checklists without the scores, and they check the items that apply, as with an un-weighted checklist. The employee’s evaluation is the sum of the scores (weights) on the items checked. Checklists and weighted checklists can be used by evaluators who are superiors, peers, or subordinates, or by a combination.
Behaviorally anchored rating scales : Another technique which essentially is based on the critical incident approach is the behaviorally anchored rating scale (BARS). This technique is also called the behavioral expectation scale (BES). This is a new, relatively infrequently used technique. Supervisors give descriptions of actually good and bad performance, and personnel specialists group these into categories (five to ten is typical). As with weighted checklists, the items are evaluated by supervisors (often other than those who submitted the items). A procedure similar to that for weighted checklists is used to verify the evaluations (outstandingly good, for example) with the smallest standard deviation, hopefully around 1.5 on a 7-point scale. These items are then used to construct the BARS.
Multiple-person Evaluation Methods
The techniques described above are used to evaluate employees one at a time. Three techniques that have been used to evaluate an employee in comparison with other employees being evaluated are discussed in this section. •
•
Ranking : In ranking method, the evaluator is asked to rate employees from highest to lowest on some overall criterion. This is very difficult to do if the group of employees being compared number over 20. It is also easier to rank the best and worst employees than it is to evaluate the average ones. Simple ranking can be improved by alternative ranking. In this approach the evaluators pick the top and bottom employees first, then select the next highest and next lowest, and move towards the middle. Paired comparison: This approach makes the ranking method easier and more reliable. First, the names of the persons to be evaluated are placed on separate sheets (or cards) in a predetermined order, so that each person is compared to all others to be evaluated. The evaluator then checks the person he feels is the better of the two on a criterion for each comparison. Typically the criterion is overall ability to do the present job. The number of times a person is preferred is tallied, and this develops an index of the number of preferences compared to the number being evaluated. These scores can be converted into standard scores by comparing the scores to the standard deviation and the average of all scores. This method can be used by superiors, peers, subordinates, or some combination of these groups.
•
Forced distribution: The forced-distribution system is similar to ‘grading on a curve’. The evaluator is asked to rate employees in some fixed distribution of categories, such as 10 percent in low, 20 percent in low average, 40 percent in average, 20 percent in high average, and 10 percent in high. One way to do this is to type each employee’s name on a card and ask the evaluators to sort the cards into five piles corresponding to the ratings. This should be done twice for the two key criteria of job performance and promo ability. One reason forced
distribution was developed was to try to alleviate such problems as inflated ratings and central tendency in the graphic rating scale.\ 360 Degree Appraisal Typically, performance appraisal has been limited to a feedback process between employees and supervisors. However, with the increased focus on teamwork, employee development, and customer service, the emphasis has shifted to employee feedback from the full circle of sources depicted in the diagram below. This multiple-input approach to performance feedback is sometimes called “360-degree assessment” to connote that full circle.
Features of Performance Appraisals •
To meet specific objectives
• • • • •
It is used for Evaluative purpose It has tell and sell feature Problem solving and counseling are associates with it Performance improvement Rewards
Agenda for the Performance Appraisal Conference Prior to the appraisal conference, the subordinate and the supervisor should prepare written evaluations. The supervisor follows the steps in the appraisal conference.
Step 1. Communicate the evaluation: Begin with a quick review of the rating. Ratings should include results of performance, as well as motivation, effort, and cooperation. Give enough attention to what went right. Start with exceeds. Emphasize where, how, and why improvement is needed. Step 2. Resolve any misunderstandings: Share the discussion with the subordinate. Give the subordinate the opportunity to respond to your appraisal. Listen without interruption. React to subordinate’s feedback nondefensively. Use concrete examples to describe performance. Acknowledge that you are receptive to the employee’s point of view. Make sure the subordinate understands your complaint before proceeding further. Step 3. Seek acceptance of the rating: Ask the subordinate, "Can you accept this rating?" Step 4. Identify areas for improvement: One of the goals of performance appraisal is to provide a means of giving feedback to a subordinate concerning ways to improve job performance. Discuss goals toward which the subordinate might work. Agree on specific targets to meet in the period ahead. Review what you can do to help. Step 5. Secure commitment to future goals: Try to focus the employee on the future rather than on the past.
Points to remember while doing performance appraisal
Performance Process Methods The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards Communicating the Standards
Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.
Measuring the Actual Performance
The most difficult part of the performance appraisal process is measuring the actual performance of the employees, that is, the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.
Comparing the Actual With the Desired Performance
The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.
Discussing Results
The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. Decision Making
The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.
MBO: Management by Objectives MBO is a very common industry practice used to review employees at the workplace. At the beginning of the year clear objectives are laid down for achievement during the course of the year. These objectives are popularly called by the following names: 1. KRA-key result areas 2. KPA -key performance areas 3. Targets 4. Commitments These objectives are designed using the SMART framework as in
Specific Measurable
Achievable Results oriented Time bound.
All objectives must conform to this framework. Thereafter the objectives are broken up into half yearly, quarterly and maybe monthly objectives, again keeping in mind the SMART framework. All along the process both the employee and the manger are in consensus of the objectives and the timelines as well as the deliverables. MBO is one of the most effective methods for performance review primarily because it is identified at the beginning of the review period and is regularly reviewed for achievements and modified on-going again in consensus between the employee and the manager. At the end of the review year, the MBO’s are reviewed for completion with the SMART framework. In case of a new employee or someone moving jobs/assignments between teams; after about 6-8 weeks of being in the job this process is undertaken and the objectives are set. Benefits of Performance Appraisal
•
Recognition satisfies human need for esteem by others and for selfesteem.
•
Awards may be given in the form of articles, banquets honouring certain individuals, certificates and plaques, too, may be given, or the employee's name may be entered on the Honours Board.
•
Such recognition may generally be given for good workable suggestions leading to a reduction in time or cost or in improving the quality of a product; for valuable services in an emergency, as when a fire breaks out, or there is a breakdown, or there are riots or accidents; exceeding sales beyond the set quota, and regularity in attendance on the job.
•
Collective recognition may be given by the award of a shield or a banner or a certificate, special privileges or a money bonus to the employees.
Incentive Scheme
According to Burack and Smith"An incentive scheme is a plan or programmes to motivate individual or group performance. An incentive programme is most frequently built on monetary rewards (incentive Ray or a monetary bonus), but may also include a variety of non-monetary rewards or prizes." The use of incentives assumes that people’s actions are related to their skills and ability to achieve important longer-run goals. Even though many organizations, by choice, or tradition or contract, allocate rewards on non-performance criteria, rewards should be regarded as a “pay off” for performance.
An
incentive
plan
has
the
following
important
features:
1. An incentive plan may consist of both ‘monetary’ and ‘nonmonetary’ elements. Mixed elements can provide the diversity needed to match the needs of individual employees. 2. The timing, accuracy and frequency of incentive are the very basis of a successful incentive plans.
3. The plan requires that it should be properly communicated to the employees to encourage individual performance, provide feedback and encourage redirection. Promotion
•
A promotion may be defined as an upward advancement of an employee in an organization to-
•
Another job, which commands better pay/wages,
•
Better status/prestige, and higher opportunities/ challenges,
•
Responsibility, and authority,
•
Better working environment, hours of work and facilities, and
•
A higher rank.
A promotion is a vertical move in rank and responsibility. Involved in a promotion may be some measure of skill; and responsibility e.g. it may be from a machinist B grade to a machinist A grade, or it may involve an entirely different type of work, for example, from salesman to a Sales Manager or from a Fitter Grade III to a Fitter Grade II, or from a clerk to the post of a Section in-charge.
Promotions are usually given: 1. To put the worker in a position where he will be of greater value to the company and where he may derive increased personal satisfaction and income from his work; 2. To remove a worker from his job as an alternative to avoid the embarrassment of firing or demoting him; 3. To recognize an individual’s performance and reward him for his work so that he may have an incentive to forge ahead. Employees will have little motivation if better jobs are reserved for outsiders: 4. To increase an employee’s organizational effectiveness;
5. To build build up morale, morale, loyalt loyalty, y, and a sense of belongi belonging ng on the part of the employees when it is brought home to them that they would be promoted if they deserve it; 6. To promote promote job satisf satisfact action ion among among the employe employees es and give them them an opportunity for unbroken, continuous service; 7. To provide provide a proces processs of “selecti “selective ve social socializa izatio tion”. n”. Employee Employeess whose whose perso personal naliti ities es and skills skills enable enable them them to fit into into an organi organizat zation ion’s ’s huma human n relat relatio ions ns prog progra ramme mme tend tend to stay stay on; on; whil whilee thos thosee whos whosee personalities do not fit well with those of the organization tend to leave; 8. To attract attract suitable suitable and compet competent ent workers workers for the organiz organization ation;; 9. To crea create te amon among g empl employ oyee eess a feel feelin ing g of cont conten entm tmen entt with with thei their r present conditions and encourages them to succeed in the company.
Chapter 4 Company’s performance appraisal
PERFORMANCE APPRAISAL
Perf Perfor orma manc ncee Appr Apprai aisa sall mean meanss to asse assess ss the the perf perfor orma manc ncee and and pot poten enti tial al of the the empl employ oyee ee for for futu future re deve develo lopm pmen ent. t. It is help helped ed to the the development of the human resources in an organization. Roger Bollon’s “Performance Appraisal is the systematic evaluation of the growth of an individual or someone is a position to observer it”. Dale S Beach’s “Performance Appraisal is a systematic evaluation of the individual will respect to his performance on the job and for his potential development”. Performance Appraisal is the process of accessing the performance and progress of an employee or a group of employees on a given job and his potential for future development. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. It is a great asset in the development of the human resources in an organization; it helps to assess its managerial strengths and weaknesses. It is a powe powerfu rfull tool tool to cali calibr brat ate, e, refin refinee and and rewa reward rd the the perfo performa rmanc ncee of the the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. Performance Appraisal is a method of evaluating the behaviour of employees in the work spot. Normally including both the qualitative and quantitative aspects of job performance. To find out whether an employee is worthy of continued employment or not and if so whether he should receive a bonus, a pay rise or promotion, has performance needs to be evaluated from time to time. Performance Appraisal helps to influence the employee future level of effort activities, result and tasks direction. We not only evaluated the performance of the employee, but also his potential for development through the Performance Appraisal.
Performance Appraisal is aimed at: To review the performance of the employees over a given period of
time. To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions,
transfers etc. Provide clarity of the expectations and responsibilities of the functions
to be performed by the employees. em ployees. To judge the effectiveness of the other human resource functions of
the the orga organi niza zati tion on such such as recr recrui uitm tmen ent, t, sele select ctio ion, n, trai traini ning ng and and development. To reduce the grievances of the employees.
Helps to strengt strengthen hen the relati relations onship hip and commun communica icatio tion n betwee between n Helps superior – subordinates and management – employees. Objectives of performance appraisal system To facilitate achievement of organizational goals through a process of
performance assessment linked to company’s objective. To facilitate fulfillment of individual aspirations and promotion of
professional excellence. encour urag agee a two two way way comm commun unic icat atio ion n proce rocess ss betw betwee een n the the To enco employee and reporting officer. evalua uate te the the suit suitab abil ilit ity y of the the empl employ oyee ee to assu assume me high higher er To eval responsibilities along the hierarchy. Stages of Appraisal
Self appraisal by the employee. Appraisal rating of the employee on Job Performance Factors &
Managerial Ability Factors. General comments and overall assessment including development needs of the Appraisee leading to the final assessment. A review Discussion between the Appraiser and Appraisee including identification of key result areas and target for the following year.
Follow up action, if any, to be taken.
Performance Appraisal system in any organization depends substantially on 5 factors: 1. Concept 2. Criteria 3. Context 4. Culture 5. Contingency
1. Concept: Performance dimension are several. They include duties, responsibility, behaviour and traits. For each of the relevant dimension and sub dimension thereof standard with have to be fixed based on past performance, industrial engineering principles or any other base. Relative weight ages have to be assigned to each of these in turn. Performance Appraisal involves at least 2 person or parties: the appraiser (Who does the appraisal) and the appraise (Whose performance is being appraised). In the context of Performance Appraisal the appraise accepts the following from the appraiser: Serial No
Appraiser Excepts
Appraiser Should
1
2
To know what his duties and responsibilities To know what is expected of him and whether expectations are reasonable enough
Prepare job description Facilitate appraise to set goals
3
To know how he is doing
To analyze result
4
To have appraisers help if need be
Advice, guide, coach and council
5
Reward to be commensurate with performance
Reward for good result
2. Criteria: Several performance measures such as output, quality, punctuality, cost control, contribution job knowledge, discretion, initiative, team work, resourcefulness, and honesty and leadership qualities are usually reckoned as some of the criteria against which performance is assessed. In most criteria involves a combination of personal date (i.e. good or bad work habits as perceived by the superior), output data (quantity than cost and quality) and judgmental data (i.e. knowledge of the job ability to get along with peers). However judicious one would like to be, there would often be a problem with perceived subjectivity (Whether real or not) which needs to be dealt with carefully.
3. Context: The top management philosophy values and beliefs systems in the organization influence the notions about people in the organization and the type of control motivation, and communication system. Those
who don’t hold positive attitude about work culture, habits or competence of their subordinates may tend to perpetuate a system of management control based on distribution and control while others who have positive notion about their subordinates may like to introduce management system based on consensus and control. In former case targets are hundred down and appraisal is done to the individuals. In the latter case, goals are fixed through discussion and mutual agreement and appraisal would in effect be carried out as a joint review with problem solving approach.
4. Culture: The culture of people in general seems to affect Performance Appraisal studies and commentaries on Indian organization seems to point to a pattern where the loyalties of employees is more then to the task or to organization, people are power centered in the sensed that those in authority would like to influence their subordinate and subordinate in their own interest are willing to accept a dependency syndrome. Where these observation hold good. There is every danger that Performance Appraisal turns out to be more personnel than system or organization oriented
5. Contingency :
The most important aspect of any information and control mechanism in any organization is who it is put to use? Unless there is a systematic effort to link Performance Appraisal to other system of Human Resource Management, it becomes difficult to impact seriousness into the systems. The result would be apathy on the point of both the appraiser and the appraise to the entire process, which eventually would become a mere ritual. Therefore it is important for organizations to say and show that organizational rewards depend upon performance.
The Performance of Organization depends on the performance of employees. IREL OSCOM has adopted a revised system of performance appraisal which required of the setting of KRAs by the reporting officer is concentration with appraise. The performance appraisal of the officer is assist through performance appraisal & is in essential input for assessment of the appraisal for their carrier growth as well as identification of the training needs. NEED: • Provide information about the performance ranks basing on which decision regarding salary fixation, confirmation, promotion and transfer demotion are taken. •
Provide feedback information about the level of achievement and behaviour of subordinate. This information helps to review the performance of the subordinate, rectifying performance deficiencies.
•
Provide information which helps to counsel the subordinate.
•
Provide information to diagnose deficiency in employee regarding skill, knowledge, determine training and developmental needs and to
prescribe the means for employee growth provides information for correcting placement. •
To prevent grievance and in-disciplinary activities.
PURPOSE: •
The primary purpose is to assess the officer’s performance to check whether he has attuned himself with the organization & whether the officer has role clarity & render service as expected him.
•
The second purpose of system is performance enhancement consequent of performance assessment.
i.
The basic function once performance is two time back of his performance.
ii.
Adverse entries if any are communicated to the officer so as to enable the officer to be aware of the areas in which he has required to improve upon.
To generate required data for training. By doing this IREL OSCOM
gets to know the performance of each officer which helps to management to consider of them at the time of ♦
Promotion
♦
Conformation
♦
Transfer
♦
Deputation
♦
Review for retention & service
♦
Determining training need for further improvement in performance
♦
Compulsory retirement in occurrence with provision containing the CDAL.
The performance appraisal forms are distributed to deputy officers and above in the 3 rd week of February. KRAs attain are done by the reporting officer in first week of April. Half yearly review of the appraise by the reporting officer is done in 1 st week of October. Annual review, Final review, Self appraisal, training needs & needs & future carrier options are done in the 1 st week of April. Assessment of managerial skill and URA achievement and computation of overall score and grade by public officer is done on 3 rd week of April Government of units head are given in 4 th week of April. Forwarding of performance appraisal report in respect of deputy manager and above to HRM of OSCOM. To HRM by unit head is done in 1 st week of May. The performance report is submitted by the head HRM to the 15 th May
& finally the performance appraisal reports are submitted to CMD by head HRM on 31st of May. Although Performance Appraisal System is introduced for development of person but actually it is used for other purposes. Therefore, it is necessary see that the Performance Appraisal System ultimately leads to development the people in organization and for this the following steps needs to be followed/ taken: 1. Although the appraisers devotes enough time but they should try to devote sometime for mutual discussion with the appraises for the settlement of the objectives. Besides this, while setting the key result areas there should be a frank and through discussion proper conclusion cannot be reached. The Appraisee should not look upon his appraiser as his boss but his guide for achieving the fixed objectives. In formal environment the appraise cannot express himself fully as a result some aspect remained unattended.
2. Performance criteria of each role mention in the appraisal from should be clearly spelt out for each of the employee through personal counseling orientation training programme for simultaneous adoption throughout the organization because the appraisee may not be fully clear/ aware of what is required or how to achieve them.
3. The objective and purpose of Performance Appraisal System needs to be clearly defined by the Indian Rare Earths Ltd. Mathikhalo (O). The objective can be properly listed in the manual and make it known to the employees.
4. Along with key result areas it ought to be seen that other areas of a role holder does not get suppressed. For total development along with
5. The attainment of key result areas and other areas should also be tries
to improve. This will help in total performance analysis of an individual.
6. Employees counseling is very important for the development of individuals working in Indian Rare Earth Ltd. Mathikhalo (O). For this purpose the appraisers can undergo “Employee counseling training programme”. 7. Top management appreciation support should come in great measure. The employees should be encouraged on achieving the objectives on a regular basis. Otherwise they lose the motivation to achieve them.
8. Identification of potential skill for shouldering higher responsibilities for future should also be made an integral part of Performance Appraisal. Once the potential skills of the employees are identified they should be trained in those respects. Potential reference to the abilities present but not currently utilized or the ability to discharge higher responsibility in future roles. Potentials can be assessed by: o
Reviewing present performance
o
Analyzing personality trails, management skill
o
Relooking past experience, considering age and qualification.
o
Exploring once unused knowledge/ skills.
9. There should be a formal appeal system instituted. If an employee is not satisfied with the overall rating of the review officer. He can submit a written appeal to the personnel department with in a stipulated time period upon receipt of his rating. The personnel officer then review the appeal and can convene an appeal panel
consisting of 3-5 employee of the organization appointed by the vice president. The appeal panel will then review the concerned employee, reporting officer and reviewing officer. After hearing the position of both the parties. The panel will independently discusses the merits of the case and votes to either grant or reject the appeal.
10.To add more objective to the appraisal system it is suggested to identify performance objectives under each key result area. This performance targets can be quantitative or qualitative, but should be time bound and should specify the level of acceptable performance for getting high performance rating. The target should focus more on the nature of effort should more on the nature of effort to be made by the appraise in relation to each of the key result areas (KRAs) performance target and it should be a joint exercise of both the Appraisee and the appraiser. 11. The management should arrange adequate training programmes for those employees which are lacking in their skills so that they can be promoted to the next higher grade. Then only the employees will be motivated to take up new responsibility and give their 100% eff ort.
12. Personnel department should advice on promotion to the topmanagement but supervisor recommendations dully considered by the top management or by his immediate superior in a line organization like Indian Rare Earth Ltd. Mathikhalo (O). This will ensure line responsibility for making promotion and the chain of command will not be used.
Promotion policy taken in IREL OSCOM: For work category as per the long term settlement there is time bound promotion policy that is after even 5 years promotions are effective to the workmen & organization. Regarding officers promotion are given on the basis of assessment of performance and
potential. For promotion from deputy officers to manager level merit as seniority both are considered where as promotion to senior manager at Deism level grater thrust is based on merit & seniority. For promotion to general manager to chief manager merit alone is consideration. Multi skilling or cross multiplication while at judging suitability of promotion to senior Digium at higher level is based on vacancy and the consult officer should work at least two unit of company in any one of unit. The effective date of promotion is either on 1st January or 1st July of year. Eligibility condition for being consideration of: ♦ For promotion deputy officer to manager grade the qualifying period is three years. ♦
For promotion to senior manager to general manager the qualifying period is four years.
♦
For promotion chief general manager to executive director the qualifying period is three years.
The promotions are generally basis of following factors Performance: Average of total overall score as per performance appraisal for the years under review up to 10 subject to maximum of 50 marks.
Period of residency in the grade: To make for every completed years of service in current grade subject to 10 marks.
Assessment at the time of interviewer actual subject of maximum 40
Employee Benefit: It is the compensation an employ receives in return. HBA-House Building Allowance
Medical Reimbursement
HRA-House Rent Allowance
LTC- Leave Travel Concession Conveyance Allowance Children Education Allowance Shift Allowance Washing Allowance Lunch Allowance Canteen Allowance Milk Allowance Hardship Allowance Mining Allowance Special Allowance Transport Subsidiary Canteen Subsidy Xerox Machine Operating Stenography Allowance Cash Handling Allowance Attendance Bonus Other Benefit
House Building Allowance (HBA):
A sum of Rs 3.5 lakhs will be paid towards HBA on the following rate of interest Amount of Advance
Rate of Interest
Up to Rs 1.5 lakhs
4%
1.5 lakhs to 2.25 lakhs
10%
Above 2.25 lakhs
12%
Medical Reimbursement: A sum equivalent to one month’s basic pay of a worker subject to a maximum of Rs. 7500 pm will be reimbursed towards medical expenses. These workers are not eligible for free supply of medicine. Maternity Benefit of Rs. 800 will be paid to the worker per child limited to 2 children.
House Rent Allowance (HRA):
The HRA will be paid to the work man as per the Government Directives indicated below: Classification of Cities/Towns A-1 A, B-1, B-2 C Unclassified
Rates of HRA 30% of Basic Pay 15% of Basic Pay 75% of Basic Pay 5% of Basic Pay
The rate at present applicable to workman is 7.5% of Basic pay.
LTC- Leave Travel Concession: Consequent on the revision of pay scales, the Basic pay for the purpose of eligibility for travel by Rail shall be as under:
2nd Class Sleeper
Below Rs. 4860 p.m Rs 4860-Rs.8500 AC Chair Car/ 1st Class/ AC 3 tier p.m Above Rs. 8000 p.m 2nd Class AC 2 tier sleeper/ 3 tier (Rajdhani or Shatabdi)
LTC Encashment: LTC in a block year of 4 years can be encashed @ Rs. 75% of train fare for max 4 person converging a distance of 2000 km each way subject to all other existing terms and conditions.
Conveyance Allowance: Possession of 2 wheelers is considered useful in the discharge of official duties by the management. Motor Cycle/ Scooter Moped
Rs. 700 p.m from 01.10.2000 Rs. 300 p.m from 01.10.2000
Those employees drawing conveyance allowance will be not entitled to company’s transport facilities.
Shift Allowance:
a) Shift 'A'
Rs. 10 per day per shift [i.e. from 0600hrs- 1400 hrs]
b) Shift 'B'
Rs. 13 per day per shift [i.e. from 1400hrs- 2200 hrs]
c) Shift 'C'
Rs. 25 per day per shift [i.e. from 2000hrs- 0600 hrs]
Lunch/Dinner Allowance: Lunch/Dinner Allowance to those workmen who are sent the management on specific official duty other than the normal duty to Berhampur/ Chatrapur during the lunch/ dinner time will be paid Rs. 25 per head per day.
Children Education Allowance:
a) Up to and including 10th Std b) Undergraduate, +2, ITI etc.
Rs. 1500 Rs 2000 c) Diploma in engineering of 3 years, Rs 3500 Graduate such as B.Sc, BA etc. d) Degree in engineering medicines, PG etc Rs. 3500 e) In such cases of correspondence course of Rs. 7000 distance education programmes etc. 75% of the rates as in a, b, c, d will only be paid.
Educational allowance will be paid up to maximum of 3 children
Washing Allowance: Washing allowance of Rs. 100 p.m will be provided to all workers who are given uniforms.
Milk Allowance:
Milk Allowance equivalent to the cost of 3/4 th ltr of milk per day will be paid for 30 days a month for each worker.
Hardship Allowance:
Hardship Allowance will be paid to the entire workman @ Rs. 135 p.m.
Mining Allowance:
Mining Allowance @Rs. 75 p.m. will be paid to the workers working in the mining area
Special Allowance: Special Allowance @ Rs. 160 will be paid to workmen in lieu of special adhoc amount excluding the workmen drawing mining allowance.
Canteen Subsidy:
A sum of Rs. 600 p.m. will be paid to the worker towards canteen subsidy.
Transport Subsidiary: Up to 2 km
:
Rs. 50 p.m.
Up to 5 Km
:
Rs. 60 p.m.
Above 5 km & up to 8 km
:
Rs. 70 p.m.
Above 8 Kms
:
Rs. 80 p.m.
Xerox Machine Operating:
A sum of Rs. 55 pm will be paid to the workmen operating Xerox machine regularly as per assignment.
Stenography Allowance:
Stenography Allowance @ Rs.10 will be paid per head per day to the concerned workman.
Cash Handling Allowance:
Cash Handling Allowance @ Rs. 65 will be paid to the clerical staff working in the Accounts Department and handling cash. A sum of Rs. 40 p.m. Will be paid to all the helpers assisting the clerical staff.
Attendance Bonus:
a) Min. 268 days of attendance in a year (Without loss of pay) 12 days b) Min. 262 days of attendance in a year (Max 3 days loss of pay) 10 days c) Min. 243 days of attendance in a year (Max 6 days loss of pay) 7 days
Other Benefits: •
Uniform stitching charges are Rs. 300 for 2 pairs of dresses.
•
An amount of Rs. 160 every year to every worker to buy an umbrella.
•
Recreation tour expenses of Rs. 450 p.a. will be paid to every worker.
•
2 toilet soaps and 2 washing soaps will be provided to very workman.
•
Sweets worth Rs. 100 p.a. will be provided to every workman.
•
Earned leave/ annual leave allowance.
•
Festival Advance allowance
•
Allowance for helper
•
Spectacles allowance
•
Recreation tour expenses allowance
•
Fork lift/ tractor operator allowance
Chapter 5 Performance Report format
appraisal
Chapter 6 Questionnaire
Questionnaire
Respected Sir/Madam, I am Su Suni nita ta Ku Kuma mari ri Sahu Sahu MBA MBA Stude tudent nt of Biju Biju Pat Pattnai tnaik k University Technology, I am here at IREL for our dissertation in the fiel field d of Huma uman Resou esourc rcee Manage nagem men entt and and doing ing proje roject ct on “ PERFORMANCE Herre by req reque uessted ted you you it is total otally ly PERFORMANCE APPRAISAL APPRAISAL”. He confidentially. It will not be produce to any employee of the OSCOM (IREL). Kindly share your valuable Thoughts.
(TICK 1.
YOUR ANSWER AT THE APPROPRIATE OPTION)
What What acco accord rdin ing g to you you shou should ld be the the appr approp opri riat atee meth method od for for conducting performance appraisal?? a)
Rating Rating the employ employee ee on number number of of traits traits along along with with the range range of
performance for each by the supervisor. b)
For every every trait, trait, each subord subordinate inate is paired paired with and compared compared to
every other Subordinate. c)
Revi Review ewin ing g empl employ oyee eess on the the basi basiss of iden identi tifi fied ed spec specif ific ic
examples of good or poor performance. d)
Sett Settin ing g spec specif ific ic meas measur urab able le goal goalss with with each each empl employ oyee ee and and
periodically reviewing the progress made. e) Reviewing performance through case studies, presentations, role playing, etc. For future future performance. performance. f)
Receiving Receiving feedback feedback from people people whose views views are are considered considered
helpful and relevant including the appraise himself.
2. Does Performance Performance Apprais Appraisal al leads to identifi identificatio cation n of hidden potenti potential al of the employees? a) Yes
b) No
c) Can’t say anything
3. Are you facing any major administrative problems?
a) Yes
b) No
c) Can’t say anything.
4. Are the personnel properly equipped with the infrastructure facilities to effectively discharge their duties a) Yes
b) No
c) Can’t say anything
5. Are your personnel being regularly trained to fulfill the objectives of the organization in changing situation? a) Yes
b) No
c) Can't say anything.
6. Does it lead to discriminatory practices? a) Yes
b) No
c) Can't say anything
7. Are you happy with the performance appraisal system? a) Yes
b) No
c) Can't say anything.
8. Does the appraisal system helps in polishing the skills or performance area? a) Yes
b) No
c) Can’t say anything
9. If given a chance or an opportunity would you like that the current appraisal procedure should be reviewed? a) Yes
b) No
c) Can’t say anything
10.What is the level of motivation of your personnel? a) High
b) Moderate
c) Low
11.How serious has been the effect of inadequate promotional avenues on the motivational level of the personnel to perform? a) High
b) Moderate
c) Low
12.What is the level of political interference in the I.R.E.L (OSCOM)? a) High
b) Moderate
c) Low
13.What is the level of corruption in the department? a) High
b) Moderate
c) Low
14.Should the appraisal process be: a) Once during the service period b) Continuous c) Never
15. What in your opinion should be the time period of conducting continuous Appraisal? a) Quarterly
b) Half Yearly
c) Yearly
STATISTICAL ANALYSIS 1) According to All Employees in officer category of OSCOM IREL the appropriate method for conducting Performance Appraisal:
2) Performance Appraisal leads to identification of hidden potential of the employees:
3) Facing any major administrative problems:
4) The personnel properly equipped with the infrastructure facilities to effectively discharge their duties:
5) Personnel being regularly trained to fulfill the objectives of the organization in changing situation:
6) Performance Appraisal lead to discriminatory practices:
7) Happy with the performance appraisal system
8) The appraisal system helps in polishing the skills or performance area:
9) If given a chance chance or an opportunit opportunity y would you you like that the the current appraisal procedure should be reviewed:
10)
The le level of of mo motivation of of yo your pe personnel:
11) 11) How seri seriou ouss has has bee been the the effe ffect of in inade adequat quatee pro promo moti tio onal nal avenues on the motivational level of the personnel to perform:
12) 12)
The The lev leveel of of pol poliitica ticall in interf terfeerenc rencee in in th the I. I.R.E. R.E.L L (O (OSCOM SCOM): ):
13)
The le level of of co corruption in in th the de department:
14)
Should the appraisal pr process be be:
15) What in your opinion should be the time period of conducting continuous Appraisal?
Chapter 7 Suggestion & Recommendation
SUGGESTION AND RECOMMENDATION After carefully going through the statistical analysis of appraisal system followed by Indian Rare Earths Ltd. Several important findings have been arrived at. In this regard, I have put forwarded some suggestions and recommendations for improvement of appraisal system. This will ultimately lead to development of people in the organization. This process can be effectively replaced by somewhat open system of performance, where both the appraiser and the appraisee share everything related to their performance with each other. The first step should basically be an interview session, where he is asked about the contribution and constraints. He is also asked what the work he has to perform is and accordingly the appraiser should fix key performance areas (KPAs) for each appraisee. In addition to the existing attributes already mentioned in the evaluation report, four factors can be added to the list. They are: i.
Quality of Work
ii.
Willingness to Accept
iii.
Dependability
iv.
Relation with peers/ sub-ordinates
i.
Quality of Work: Basically means the amount of acceptable work produced, consistency and regularity of output. By judging this factor the appraisees efficiency and quality can be gauged. Because without efficient workers the production will go down. Here the management can take action accordingly through counseling and training programmes.
ii.
Willingness to Accept: Responsibility relates to the employees willingness to accept and seek additional responsibility. Here it can be seen to what extent he takes initiatives while doing his work.
iii.
Dependability: Relates the reliability to perform and complete assigned task with in schedule time, and extent of follow up required. To what extent he can depend. ( For future development) through this he can be judged if he is ready for additional responsibility in the future which will be a very useful data for development plans.
iv.
Relation with peers/ subordinates: Is a very import factor in shop, floor without this there may be chaos and confusion in the mind as the fellow employee. The reason for such behaviour can be found out, so that a peaceful climate prevails in the organization.
Here both the reporting officer and the reviewing officer gives factors score separately for the same factor. The total factor score of the reporting officer and the reviewing officer is then again added up to get the final appraisals rating. In addition to the factor score’s given by the reporting and reviewing officer. They also give their opinion and recommendation on the appraisee. It has been observed that many of the workers, employees are doing the same work for several years. As a result frustration has
creep up in their work thereby reducing their efficiency. In this regard, job rotation and development plan can be looked into as a part of the performance appraisal report. It will also help for the purpose of promotion related decision as they may be developed for promotion to the next higher grade. By encouraging job relation the problem arising out of absenteeism can be effectively lacked. So because the employee will be multi skilled, they can be easily switch over to another job/ areas as the situation demands.
Chapter 8 Summary and Conclusion
Summary Employee’s appraisal is important for manpower development because it reveals strength and weaknesses of an employee. And accordingly development plan can be prepared for each employee. Development of a person based on his performance appraisal leads to improved job performance. The appraised employee qualify himself for higher responsibility, more rewarding assignment and promotion the appraisal programme is directed towards the actual performance of an employee on his present job as well as potential for promotion to a higher level position. If the performance appraisal system is to be effectively used in IREL, Mathikhalo, for its entire employee. The evaluation report should be changed and it is high time that the top management takes firms steps in this direction. The management must be committed to the development of human resource in IREL, Mathikhalo, investment in term of managerial time training effort, job enrichment and other such programme must become integral part of the management process. A good degree of openness and inter personnel trust in the organization is out most necessity. The management has to be interested in creating more open, collaborating and mutually trusting climate in the whole organization. Above all the IREL, Mathikhalo, top management must believe that development of human resource will contribute to its effectiveness, productivity and ultimately performance. All this
will make the performance appraisal system and top management levels role more effective in IREL, Mathikhalo.
Conclusion I hope, this project study in Indian Rare Earths Ltd. Mathikhalo will start off my career in a right and positive note. While going to conclude my project report, it has come to my mind that I have gained immense practical knowledge about various management aspects within a short span of time. Add once again I thanked to all the employees of Indian Rare Earths Ltd. Mathikhalo (O) for their at the field of promotion. And also I pray at God to give them good ideas for not tight with each other and co-operate with each other.
BIBLOGRAPHY Primary Data:•
•
•
•
HR Management Human RelationV.P.Michael
Personnel ManagementC.B.Memoria
Performance Appraisal Aswathapa
Human Resource Management-
A.K
V.S.P.Rao.
Secondary Data:•
Questionnaire
•
Journals
•
Review
•
Magazines
Prerana, IRE
Human Capital
