My Report Intial

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    1. INTRODUCTION

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    1.2 Objectives Of The Study:

    The main objective of the training is to get a practical knowledge about the various

    functions of a Human Resource manager in a company. Mainly the recruitment process of the

    company, various methods of welfare measures and grievance handling in the company are

    observed.

    The objectives of the training are to learn about the following matters.

    Manpower planning in the company

    Identification of the potentiality expected from employees for different jobs in the

    company

    Identification of the potential workforce

    Screening of the candidates for the job

    Post Placement training

    Salary and other allowances fixation

    Meeting the welfare of the employees working in the company

    The various government regulations and their implementations in the companies in

    real time

    1.3 Scope Of The Study:

    This training is concentrating on the various HR functions taking place in PRICOL

    Limited.

    1.4 Limitations Of The Study:

    Lack of co-operation from certain departments due to their

    work load.

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    2. INDUSTRY PROFILE

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    2. INDUSTRY PROFILE

    2.1 Current Status of Indian Automotive Industry

    On the canvas of the Indian Economy, Auto Industry occupies a prominent place.

    Due to its deep forward and backward linkages with several key segments of the economy,

    automotive industry has a strong multiplier effect and is capable of being the driver of

    economic growth. A sound transportation system plays a pivotal role in the country's rapid

    economic and industrial development. The well-developed Indian automotive industry ably

    fulfils this catalytic role by producing a wide variety of vehicles: passenger cars, light,

    medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters,

    motorcycles, mopeds, three wheelers, tractors etc.

    Although the automotive industry in India is nearly six decades old, until 1982, only

    three manufacturers - M/s. Hindustan Motors, M/s. Premier Automobiles & M/s. Standard

    Motors tenanted the motorcar sector. Owing to low volumes, it perpetuated obsolete

    technologies and was out of sync with the world industry. In 1982, Maruti Udyog Limited

    (MUL) came up as a Government initiative in collaboration with Suzuki of Japan to establish

    volume production of contemporary models. After the lifting of licensing in 1993, 17 new

    ventures have come up, of which 16 are for manufacture of cars. There are at present 12

    manufacturers of passenger cars, 5 manufacturers of MUVs, 9 manufacturers of Commercial

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    Vehicles, 12 of two wheelers, 4 of three wheelers and 14 of tractors besides 5 manufacturers

    of engine.

    The industry comprising of the automobile and the auto component sectors has

    shown great advances since delicensing and opening up of the sector to FDI in 1993. The

    industry has an investment of a sum exceeding Rs.50,000crore. During the year 2003-04 the

    turnover of the automotive sector was around Rs.1,00,000 crore. The industry provides direct

    employment to 4.5 lakhs and generates indirect employment of 1 crore. The contribution of

    the automotive industry to GDP has risen from 2.77% in 1992-93 to 9% in 2009.

    2.2 AUTOMOBILE INDUSTRY

    2.2.1 Installed Capacity

    The Automobile Manufacturers have put up a robust manufacturing capacity of 95

    lakh plus vehicles per annum since 1993. Today India is the world's second largestmanufacturer of two wheelers, fifth largest manufacturer of commercial vehicles and

    manufactures largest number of tractors in the world. The country offers fourth largest

    passenger car market in Asia today. A supplier driven market, having no more than a handful

    of vehicular models two decades ago, now offers more than 150 models and variants by way

    of customer options.The installed capacity of the automobile sector during the year 2008

    2009 is 9,540,000 vehicles, comprising 1,590,000 four wheelers (including passenger cars)

    and 7,950,000 two and three wheelers. The sector has shown great advances in terms of

    development, spread, absorption of newer technologies and flexibility in the wake of

    changing business scenario.

    2.2.2 Production

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    One of the largest industries in India, automotive industry has been witnessing

    impressive growth during the last two decades. Abolition of licensing in 1991, permitting

    automatic approval and successive liberalization of the sector over the years have led to all

    round development of this industry. The freeing of the industry from restrictive environment

    has, on the one hand, helped it to restructure, absorb newer technologies, align itself to the

    global developments and realize its potential and on the other hand, this has significantly

    increased industry's contribution to overall industrial growth in the country. During the last

    five years, India has turned into a big trade mart for the automobile industry, registering a

    growth rate of 15-27 percent.

    2.2.3 Export

    Export figures of 2008-09 are a testimony to Indias growing status as big trade

    mart for the automobile industry. As per the data released by the Society of Indian

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    CATEGORY 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

    Passenger

    Vehicles

    989,560 1,209,876 1,309,300 1,545,223 1,777,583 1,838,697

    Commercial

    Vehicles

    275,040 353,703 391,083 519,982 549,006 417,126

    Three

    Wheelers

    356,223 374,445 434,423 556,126 500,660 501,030

    Two Wheelers 5,622,741 6,529,829 7,608,697 8,466,666 8,026,681 8,418,626

    Grand Total 7,243,564 8,467,853 9,743,503 11,087,997 10,853,930 11,175,479

    http://www.made-from-india.com/http://www.made-from-india.com/http://www.made-from-india.com/http://www.made-from-india.com/http://www.made-from-india.com/http://www.made-from-india.com/
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    global automobile majors is creating a huge export opportunity for Indian component

    manufacturers.

    2.3.1 Industry dynamics

    The Indian auto components industry started out small in the 1940s supplyingcomponents to Hindustan Motors and Premier Automobiles, two largest manufacturers of

    automobiles in India at that time. In the 1950s, the arrival of Telco, Bajaj, Mahindra &

    Mahindra led to steadily increasing production. A closed market with high import tariffscharacterized the Indian auto component industry pre 1985. 1985-91 saw significant JVs in

    the Indian auto component segment with Japanese manufacturers. After 1991, the delicensing

    of the sector led to global auto manufacturers initiating assembly operations in India. This

    subsequently led to global Tier I players entering the Indian auto space and the recognition of

    the potential in the Indian auto component segment.

    The Automotive Component Manufactures Association (ACMA) classifies the

    auto ancillary industry into the following product segments:

    Engine and engine parts: Pistons, piston rings, piston pins, gaskets, carburetors, fuel

    Injection pumps, etc.

    Drive transmission and steering parts: Transmission gears, steering gears, crown

    Wheels and pinions, axles, wheels, etc.

    Suspension and braking parts: Leaf springs, shock absorbers, brake assemblies, etc.

    Electricals: Spark plugs, starter motors, generators, distributors, voltage regulators,

    Flywheel magnetos, ignition coils, etc

    Equipment: Dashboard instruments, headlights, horns, wipers, etc.

    Others: Fan belts, sheet metal parts, plastic moldings, etc.

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    The major players in the auto ancillary industry can be classified between the ones

    Catering to the two wheeler industry and the four wheeler industry. MICO, Bharat Forge,

    Sundaram Clayton, Sundaram Brakes, Rane Brakes, etc. mainly cater to commercial

    vehicles/tractors. There are many companies like Ucal Fuel, Motherson Sumi, PRICOL,

    Subros, etc. which supply mainly to car industry. Companies like Munjal Showa, Lakshmi

    Auto, Omax Auto, etc. cater to two-wheelers.

    2.3.2 Sectoral Performance

    The auto-ancillary was the best performing sector among the intermediate goods.Different segments of the sector such as bearing, casting, fasteners, batteries and tyres have

    grown in a range of 25-40%. Global majors are in a very critical condition; they are loosing

    their market share because major automobile companies are being attracted by India, China,

    & Taiwan.During the recent downturn, global auto manufacturers financial performance was

    impacted on account of their high cost structure. This has caused these players to increase

    their sourcing (automobiles and components) from low cost countries. High skilled labour,

    improving quality standards and lower manufacturing costs improve Indias prospects as a

    sourcing destination vis-a-vis countries such as Indonesia, Korea, Brasil, etc. Further Indian

    players have formed JVs with global leaders, which have resulted in transfer of technology

    thereby putting them high on the global landscape. Around 44% of total exports are made to

    Europe. The marketing mix for exports has changed over the years with contribution from

    OEMs increasing from 35% in 1990 to 80% in 2008.

    Exports of domestic automobile components saw a decline last year, with global auto

    giants US and Japan being hit because of the slowdown. After grossing a compounded

    average growth rate (CAGR) of 25-30 per cent in five years before the slowdown, the autocomponents exports industry saw a growth of just 5 per cent in the previous (fiscal) financial

    year 2009. A recovery in the market for exports of auto components can only be seen in the

    second half of the ongoing financial year (2010), as global markets such as Japan and the US

    are showing steady signs of recovery.

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    revenue growth for the auto-component industry. Steel is a major raw material in

    manufacturing of parts. Over the past two years, the

    domestic steel prices have been increasing. Similarly, other inputs like non-ferrous

    metal, fuel, and transport costs have also been increasing. However, the auto ancillaries are

    not able to pass on the rise in costs, due to quality and price consciousness of auto majors.

    Fortunately, healthy rise in volumes, players move up the value chain, increasing exports

    together facilitated them to cushion the rise in costs, and enabled them to maintain margins.

    As per an Automotive Component Manufacturers Association of India (ACMA)

    report, the turnover of the auto component industry was estimated at over US$ 19.1 billion in

    2008-09. The industry's turnover is likely to touch US$ 40 billion by 2015-16. The potential

    compounded annual growth rate (CAGR) of the auto component industry is estimated to be

    11 per cent in the period 2008-15. Exports from the auto component industry is estimated to

    be worth US$ 3.8 billion in 2008-09, recording a rise of 8 per cent over the previous fiscal,

    according to an ACMA report.

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    3. ORGANIZATION PROFILE

    3. ORGANIZATION PROFILE

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    3.1 COMPANY PROFILE

    Premier Instruments & Controls Limited was established in 1974 at Coimbatore,

    Tamil Nadu, India, and commenced manufacturing operations in 1975 in the precision

    engineering field of Automotive Instruments. Today, Pricol is the market leader enjoying

    53% of the Automotive Instruments market share.

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    Plant II at Gurgaon near New Delhi, India, was established in 1988 to cater to the

    needs of the OEM customers in North India. Plant III and Plant IV were established at

    Coimbatore, Tamil Nadu, India, in 1999 for rationalizing Pricol's manufacturing activities. In

    1997, Pricol joined hands with DENSO Corporation, Japan, a US $ 17.7 billion AutoAncillary company to chalk out its growth and future. Denso Corporation, Japan is the Joint

    Venture Partner with Pricol and has invested 12.5% in the equity capital of Pricol.

    3.2 Product Portfolio

    Automotive Dashboard Instruments and Accessories for two-wheelers, three-wheelers, four-wheelers, commercial vehicles, tractors, earth-moving equipments and

    industrial applications.

    Instrument Clusters, Programmable Electronic Speedometers and

    Tachometers, Mechanical Speedometers, Mechanical and Electrical Pressure

    Gauges, Mechanical and Electrical Temperature Gauges, Ammeters, Battery

    Condition Indicators, Voltmeters, Fuel Gauges, Electronic RPM Meters,

    Mechanical RPM Meters, Electronic Hour Meters, Combination Meters, Oil

    Level Gauges, Quartz Hour Counters, Quartz Clocks, Warning Lamps, etc.

    Speedometer Cables.

    Switches and Sensors such as Speed Sensors, Pressure Sensors, Temperature

    Sensors, Fuel Level Sensors, Pressure Switches, Oil Level Switches.

    Four-wheeler items such as Wind Shield Washer Motor Kits, Cigarette

    Lighters, Heater Ventilation Air Condition Control Units, Idle Speed Control

    Valves.

    Two-wheeler items such as Handle Bar Switches, Auto Decompression Units,

    Chain Tensioner Assemblies, Auto Fuel Cocks, Gears & Pinions, Hub Drives.

    Oil Pumps for two-wheelers and industrial engines Disc Brakes for two-wheelers.

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    Electronic Textile Counters and Controls, Fare Meters, Engine Monitoring Systems,

    Data Acquisition and Control Systems Electronic Road Speed Limiters for

    Commercial Vehicles Precision Machined Components Sintered Components.

    3.3 Pricol Export

    Pricol exports about 12% of its turnover to the USA, Canada, Mexico, South

    America, Europe, Turkey, Egypt, Middle East, Asia, Australia, New Zealand, etc.

    3.4 Research & Development

    Pricol spends, on an average, 3% of its turnover on research and

    development. Pricol is an ISO 9001 company since 1993 and certified for QS 9000 since

    December 2001. Pricol has initiated Total Quality Management (TQM), Total Productive

    Manufacturing (TPM), Supply Chain Management (SCM), Enterprise Resource Planning

    (SAP R3 ERP), and Collaborative Product Commerce (CPC - Windchill) to render faster and

    efficient service to customers.

    3.5 Corporate Vision

    Strive for excellence in all we do through socially and environmentally

    acceptable means

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    3.6 Corporate Mission

    Pricol have market leadership through customer delight. We will be a responsible

    corporate citizen and share the benefits with society. We will make our customers,

    employees, suppliers and share-holders feel proud of our association and want a long-termrelationship with us.

    3.7 Corporate Core Values

    Respect and concern for individuals

    Customers, Employees and Suppliers - Partners in the Value Chain

    Encourage innovation and improvement; accept noble failures

    Continuous learning

    3.8 TPM Policy

    Establish an excellent Total Productive Manufacturing system with total

    involvement of all employees to achieve effective utilization of all resources.

    3.9 Quality Policy

    Pricol provide value and satisfaction to customers on products and services. This is

    achieved through systematic training and motivation of employees

    3.10 Environmental Management System (EMS) Policy

    Pricol is a responsible corporate citizen in all its business operations and systems to

    promote the health and well being of people and environment. This shall be achieved through

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    its occupational Safety, Health and Environmental (SHE) policy and objectives with Total

    Employee Involvement (TEI).

    1. Safety

    Achieve zero accidents through eternal vigilance, technology, employee

    education/motivation / participation and prevent loss of precious resources of people,

    machines and materials.

    2. Health

    Promote Employee Welfare and Quality of Work Life (EW & QWL) to achieve the

    physical, emotional, mental and spiritual health in their personal and professional lives

    through education and habit formation.

    3. Environment

    Carry out eco-friendly manufacturing and management practices that will comply

    with environmental legislation / regulations, minimize wastes and create environment

    preservation awareness amongst employees and the community. It shall be continually

    improved through the P-D-C-A spiral in daily management with strategic and operational

    intent.

    3.11 Pricols Customers

    Two Wheelers, Three wheelers & ATVs:

    Bajaj Auto, India Royal Enfield, India

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    Beldeyama, Turkey Suzuki, India

    Derbi Nacional, Spain Suzuki, Malaysia

    Egyptian Light Transport, Egypt Suzuki, Philippines

    Hero Honda, India Suzuki, Thailand

    Honda, India TVS Motors, India

    Kinetic Engineering, India Victory, USA

    Kinetic Motors, India Yamaha, Europe

    Piaggio, Italy Yamaha, India

    Cars, SUVs & MUVs

    Fiat, India Mahindra & Mahindra, India

    Ford, India Mahindra Renault, India

    General Motors, India Maruti Udyog, India

    Hindustan Motors, India Saipa, Iran

    Honda Siel Cars, India Tata Motors, India

    Magyar Suzuki, Hungary Toyota Kirloskar Motors, India

    Trucks & Buses :

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    Ashok Leyland, India Mahindra & Mahindra, India

    Askam, Turkey Oshkosh, USA

    BMC, Turkey Pierce, USA

    Eicher Motors, India Swaraj Mazda, India

    Force Motors, India Tata Motors, India

    Tractors & Construction Equipments

    AGCO, USA L&T CASE, India

    BEML, India Mahindra & Mahindra, India

    Carraro, India Massey Ferguson, UK

    CAT, India New Holland Tractors, India

    Doosan, Korea Punjab Tractors, India

    Eicher Tractors, India SAME Deutz Fahr, India

    Escorts Claas, India SAME Deutz, Italy

    Escorts Construction Equipments, India Simplicity, USA

    Escorts Tractors, India Standard Tractors, India

    Indo Farm Tractors, India Tafe Motors & Tractors, India

    International Tractors, India TATRA Udyog, India

    JCB, India Telcon, India

    JCB, UK Terex Vectra, India

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    John Deere, India Terex, UK

    John Deere, USA Tractors & Farm Equipments, India

    Sintered Components

    Applicomp, India Rane, India

    Ashok Leyland, India Roots, India

    GE Transport System, USA Technoplast, Germany

    Godrej, India Tecumseh, India

    Lucas TVS, India TVS Motors, India

    Mico Bosch, India Valeo, USA

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    4. HUMAN RESOURCE DEPARTMES

    4. HUMAN RESOURCE DEPARTMENT

    PRICOLS human resource management systems and processes aim to

    create a responsive, customer-centric and market-focused culture that enhances

    organizational capability and vitality, so that each business is internationally competitive and

    equipped to exploit emerging market opportunities.

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    4.1 Structure of Human Resource Department

    EXECUTIVE HR

    VICE PRESIDENT HR

    SENIOR M ANAGER

    SENIOR DEPUTY MANAGER

    ASSISTANT MANAGER

    SENIOR OFFICERS

    JUNIOR OFFICERS

    4.2 Recruitment and Selection

    Pricols Recruitment objectives:

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    To effectively manage the manpower recruitment in coherence with long term and

    short term manpower planning of the organization through a standard recruitment and

    selection policy.

    To proactively and systematically identify the recruitment needs in time. To ensure that

    all the recruitment are within the manpower budget and as per the laid down policy.

    The recruited people with required level of skilled and aptitude for learning and

    growth

    Scope of recruitment:

    This policy shall apply to all PERMANENT management position in the company including

    the workmen.

    Identification of vacancies:

    1. Total permanent manpower strength/budget for organization has been

    sanctioned by the board of directors.

    2. All the recruitment has necessarily to be made within the approved

    budget/strength only.

    3. Vacancies against the sanctioned budget may arise due to:

    Retirement

    Turnover

    Natural Separation

    4. whenever a vacancy arise, the concerned department has to fill up the prescribed

    manpower requisition form clearly indication the job description and

    specification, time frame and send it to HR department

    Recruitment Sources:

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    inturen get a snap shot of job seekers through constant interchange of information with

    respective institutions. A preliminary screening is done within the campus and the short listed

    students are then subjected to the reminder of the selection process. In view of the growing

    demand for young managers, most reputed organizations visit regularly and even sponsor

    certain popular activities with a view to earn goodwill in the job market. Advantage of this

    method include: the placement centre helps locate applicants and provides resumes to

    organization; applicants can be prescreened; applicants will not have to be lured away from a

    current job and lower salary expectation.

    4.2.3 Indirect Method

    Advertisement

    This includes advertisement in news papers; trade, professionals and technical journals; radio

    and TV etc. In recent time this medium became just as colorful lively and imaginative as

    consumer advertising. The ad generally gives a brief outline of the job responsibilities,

    compensation package, prospects in the organization etc. This method is appropriate when (a)

    the organization intends to reach a large target group and (b) the organization wants a fairly

    good no. of talented people who are geographically spread out.

    Head Hunters

    There is an influx of executive search agencies also known as head hunters who specialize in

    selection of professionals for very senior or top posts, where applicants are in short supply and

    employers have no time to go round in search of the best talents. Such vacancies are fewer and

    far between and organizations prefer hiring a head hunter who maintains confidentiality of the

    employer and are specialize in recruiting the best talent strictly as per the job specification. But,

    these specialists bodies charges hefty professional fees. However, the high cost is outweighed

    by the benefit of recruiting the best talent without going through the cumbersome and timeconsuming process of internal recruitment system.

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    4.2.4 SELECTION PROCEDURE

    Screening of Application :

    All application received from various sources will be screened by the

    concerned department and HR based on the job description and

    specification and the applicant profile.

    Shorting of prima facile suitable candidates who should be called for

    test/interview shall be prepared.

    The ratio between the number of vacancy and the number of

    candidate to be called for test/interview should normally be 1:5.

    Test:

    Depending on the requirement of the job if required, management may

    conduct written/aptitude/psychometric/physical or any other test asdeem fit.

    Short listed application will be send formal letter for appearing test at

    least 15 days in advance.

    Qualifying criteria for the test will be determined by the management

    depending on the nature and requirement of the job.

    Interview:

    All the candidates short listed for interview will be informed through aformal call letter for attending interview at least 15 days in advance.

    The candidate will be interview by the interview panel.

    Final Selection And Appointment:

    Recommendation of the interview panel will be put up before the Executive

    HR by the HR Department for his approval.

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    Candidates for the officer and above after interviewed by the panel will be

    finally interview by the MD.

    Selection of candidates will be strictly on the basis of merit.

    Appointment letter will be issued to the finally selected candidates after duly

    approved by Executive HR. However, in case appointment letter can initially

    be issued to the candidates and the detailed formal appointment letter can be

    issued at the time of joining.

    Before letter of appointment is issued to candidates HR department will

    ensure the following:

    1. Check and verify all the personal details furnished by the candidates.

    2. Verify the certificates and other credentials.

    3. Make necessary reference/antecedents verifications whenever

    required.

    Joining Formalities:

    (a) Employees joining shall first report in the HR department

    will facilitate in completing the joining formalities such

    as filling of joining report and other necessary forms.

    (b) HR department will ensure that the candidates will be

    allowed to join subject to their being found medically fit.

    4.3 Placement and Induction:

    After the selecting the candidate, he/she is placed in the suitable job. At PRICOL

    this is handled by the HR department, the candidate is assigned with a specific rank and

    responsibility. The candidates selected work on probation for a given period of time, after

    which their services are confirmed. The probationary period ranges from 6 months to two year.

    The performance of the candidate is evaluated at the end of the probationary period. The

    candidates are made permanent employees only if their work is satisfactory.

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    Induction or orientation is the task of introducing the new employees to the

    organisation and its policies, procedures and rules. At PRICOL, all the new employees are

    given induction training program so that they will become familiar to their working conditions

    and also the employees in the particular unit. This is given by the respective departments. All

    the queries of the new employees are answered during this induction program.

    The induction program consists of the following:

    Organization

    1. Companys history

    2. Employees title and department

    3. Executives of the company

    4. Probationary period

    5. Policy and rules

    6. Codes of conduct

    7. Safety measures

    Employee benefits

    1. Salary2. Holidays (festival and national)

    3. Training

    4. Counseling

    5. Insurance, retirement policies and other benefits

    About the job

    1. Tasks

    2. Job location

    3. Safety measures

    4. Job objectives

    5. Shifts

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    Introductions

    1. To department head

    2. To co- workers

    3. To trainers

    At PRICOL, the internal mobility of the employees takes place. Its common among the

    worker and staff level, when more man power is required in the other departments during

    certain projects.

    4.4 Training and Development:

    4.4.1Training

    The new employees are given training regarding the specific tasks to which they

    have assigned. At PRICOL, the new employees are given adequate training before they are

    allowed to work independently. They are evaluated continuously throughout their training

    program. HR department monitors all the new employees and evaluates their performance.

    This training makes the employees more productive and more useful to the organisation.

    The new employees participate in the training program under the responsibility of

    Head HR or Respective Functional Head.

    The types of training given at PRICOL are:

    Skills training:

    The employees are trained in such a way that their existing skills are improved and

    they handle the situation and the machinery more efficiently. This training is provided

    to both the new and existing training

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    Refresher training

    The employees are trained about the new technologies that have emerged in the recent

    time. The company organises special training programs once in 3 months to update

    the employees knowledge and help them to face the future challenges.

    Cross-functional training

    It involves the training employees to perform operations in area other than their

    assigned job. This is done to improve the efficiency of the workers in different

    departments and also to follow flexible scheduling.

    4.4.2 Training Assessment

    All the training programs provided to the employees at PRICOL are assessed

    continually. HR department plays a major role in organizing these programs and makes sure

    that the objective of the training program is attained. The need for the training program is

    determined depending on the productivity and objectives of the company, companys

    performance, the skills required for performing a particular tasks and the individuals ability

    to do the assigned job. The training program given to the employees at PRICOL is 8 hours

    per day and the type of training depends on the analysis using the skill matrices.

    4.4.3. Education & Training - Self development:

    Methodology

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    Multi - skilling employees

    Use of 5 Senses for observation and judgement

    Improving knowledge, skill and morale

    Class room training, Seminars

    On the job training

    Objective

    To foster excellent personnel and have these personnel display their potential to the

    utmost degree

    To develop knowledge and skill competent personnel

    To habituate to continuous education & training, as an organizational initiative

    5 Stage of Skills

    Level 0 Don't know (not educated)

    Lack of knowledge

    Level 1 Know only in theoretical sense

    Shortage of training

    Level 2 Can partially do it

    Shortage of training

    Level 3 Can do it with self-confidence

    State of having bodily learned it

    Level 4 Can teach others

    State of completely mastered it

    Training Method

    Identification of training methodology

    Consolidation of training needs identified

    Identification of Faculty - Internal & External

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    Develop Knowledge Bank

    Organize training material

    Preparation of Training Calendar

    Organize Training Programs

    Evaluate Training

    Re-train based on the evaluation

    4.5 Grievance Handling And Discipline :

    4.5.1 Grievance Handling:

    An organization is a joint place where various people of different characteristics

    work under a common roof. As such, existence of difference of opinion has become a

    common subject nowadays with the employees getting dissatisfied with various aspects of

    their work environment, such as the attitude of the manager, policy of the company, working

    conditions, or behavior of colleagues. Employers & superiors mostly try to ignore or suppress

    grievances for as long as possible. But they cannot be suppressed for long as Grievance acts

    as rust which corrodes the very fabric of organization. An aggrieved employee is a potent

    source of indiscipline and bad working. Thus, grievance is one emotion that plays a vital role

    in any organization.

    A grievance can be defined as any sort of dissatisfaction, which needs to be

    redressed in order to bring about the smooth functioning of the individual in the organization.

    Real or imaginary, legitimate or ridiculous, rated or unvoiced, written or oral, it however

    finds expression in some form of the other.

    In employment law, a grievance is a formal, itemized complaint to

    management that it has treated one or more employees unfairly or has violated the contract or

    collective bargaining agreement.

    4.5.2 Grievance Procedure:

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    In PRICOL there exist six (6) Satellite Vendor Units (SVUs). These units are

    engaged in the production of various mechanical and electronicsl products for various pricol

    customers. The employees in these SVUs are grouped into three groups. These groups are

    operator groups, staff group, and shop floor group. A common goodwill meeting is

    conducted every month for each group at a particular date. A panel is formed by the HR

    department for conducting the common goodwill meeting. The panel consists of one HR

    representative, one production head of that particular SVUs and one shop floor

    representative. The panel members are called window person. The employees can raise their

    grievance in the common goodwill meeting. The employees can raise their grievance

    regarding the working conditions, any wages dispute and any pending in their payments. But

    they are restricted to raise against the policy matters of the company, settlements and issues

    affecting the entire factory or a particular department.

    The panel members will maintain a register for grievance handling. When a

    employee raises his grievance his name, employee code number, department to which he

    belongs, nature of the grievance and person who is responsible are noted in the register. Some

    of the grievance raised by the employee will be solved at the shop floor on the same day

    itself. After the meeting is over the panel members displays the grievance raised by the

    employee in the common notice board. The time taken by the panel to solve the grievance is

    before the commencement of the next common goodwill meeting. If the panel is not able to

    solve the problem within the next commencement of goodwill meeting (i.e.), within one

    month then a proper explanation is given to employye as well as it is displayed in the

    common notice board.

    4.5.3 Discipline:

    In spite of the best efforts of the employer to select good employees and maintain

    them well, employees may create problems in the work place. Such problems affect their

    performance as well as the performance of other employees. In effect it would affect the

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    efficiency and effectiveness of the organization. Common problems include absenteeism,

    frequent quarrels with other employees, refusal to accept work related orders, alcoholism and

    drug abuse, non compliance with safety measures etc. These problems are viewed seriously.

    PRICOL follow rules and standards of accepted work behavior. Most employees exercise self

    discipline. They are well within the requirements prescribed. Normally, employees do not

    desire to be isolated. Therefore, they prefer to meet the expectations of the organization.

    There are quite a few employees who are not self disciplined. They do not meet the

    rules and standards of accepted behavior. Disciplinary action is initiated when employees do

    not conduct themselves according to these. Usually some punishment is initiated against the

    employee. The idea is that the disciplinary action would condition the employee to correctunaccepted work behavior.

    4.5.4 Types Of Discipline Problems:

    There are several problems that arise in the workplace. Not all of these are

    considered important enough to initiate disciplinary action. The most important ones are:

    Attendance

    Dishonesty

    On the job behaviors

    Undesirable actions outside the organization

    Attendance

    It is one of the serious problems that managers face. Attendance is a

    serious problem as it affects performance. It occurs because employees goals are not aligned

    to the to that of the organization. If this is done there is probability of reducing its occurrence.

    Employees also tend to use all of the leave that is available to them. Especially misuse of

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    sick leave that is allowed to the employee is noticed. Employees report sick even if they are

    not. This because they believe that not using the leave is in effect not enjoying their

    privileges. In fact they believe that sick leave is time off earned by them. A change in attitude

    towards employment is also observed. Employees dont appear to take their jobs seriously.

    They are therefore willing to absent themselves frequently. Moreover, some employees find

    it difficult to balance home and work life. Therefore, they tend to absent from work. With the

    introduction of flextime, organizations have been able to tackle some of the issues

    contributing to absenteeism. In other cases much remains to be done.

    Dishonesty

    Generally, dishonesty attracts the severest forms of disciplinary action. It usually

    leads to the dismissal of the employee. Dishonesty takes the form of stealing, lying or

    falsifying key information. This is because the PRICOL believes that even a single incident

    of dishonesty may point to the possibility of the person repeating it over again. They are

    therefore unwilling to give them a chance again. PRICOLs organization cultures do not

    tolerate dishonesty. It is often believed that dishonesty must be punished.

    On the job behaviors

    PRICOL do not tolerate some forms of on the job behavior. Insubordination,

    quarrelling, failure to use safety a gears , alcoholism and drug abuse are a few of them. These

    problems are an indication that the employee is unwilling to abide by the rules of the

    organization. As these behaviors are unacceptable ,corrective action is initiated. As these

    problems can be addressed and wiped out through appropriate corrective action, they attract

    a lesser form of disciplinary action.

    Undesirable actions outside the organization

    Activities done outside the organization can also affect on the job performance.

    Sometimes, such behavior negatively affects the image of the organization. Engaging in

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    criminal actions, revealing business secrets to competitors, accepting grafts for doing jobs,

    etc. are some examples of bad job behaviors. When the employees off the job behavior is

    bad, the organization may find it embarrassing. In such situations, it can take appropriate

    disciplinary action against the employee. The severity of the problem decides the

    punishment.

    3.5.5 Disciplinary Actions

    The disciplinary actions followed by PRICOL are

    Oral Warning

    Written warning

    Suspension

    Demotion

    Pay cut

    Dismissal

    4.5.6 Domestic Enquiry:

    When the management of the company finds that an act of misconduct committed

    by an employee, warrants disciplinary procedure should be conducted in order to conclude

    whether the act committed by the employees is a misconduct or not. Management can

    arrange to conduct the disciplinary procedure from within the company or by the officers

    from outside the company. Enquiry conducted from within the company by the internal

    officers is called domestic enquiry.

    Management appoints the company officers as domestic enquiry officer.

    Sometimes, the immediate superior of the employees is appointed as domestic enquiry

    officer. Sometimes, the personnel manager in charge of discipline may act as an enquiry

    officer from other than the personnel department and the department to which the employee

    belongs, may be appointed as the enquiry officer.

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    The domestic enquiry officer enquires into the issue by:

    Calling the employee for explanation

    Considering the explanation of the employee

    Issuing a show-cause notice

    Holding a full-fledged enquiry

    Considering the witness reports, documents, events etc. and

    Considering the enquiring reports

    After the enquiry is over, the domestic enquiry officer, submits his final report to the

    HR-President. HR-President implements the report, if it is satisfied with the enquiry.

    4.5.7Auditor Enquiry:

    Auditor enquiry is conducted by the management when the management finds a

    legal misconduct by the employee. An enquiry officer outside the organization is appointed

    by the management. The enquiry officer will proceed the enquiry and submits his report to

    the management. Usually the enquiry officer appointed by the management will be from the

    legal background (ie) practicing lawyer. A management representative will be appointed on

    behalf of the management. A show-cause notice will be issued to the delinquent employee by

    the auditor seeking his explanation. The show-cause contains the detailed information

    regarding the nature of misconduct involved by the employee, time and date of when he/she

    has to appear in front of the enquiry officer.

    The delinquent employee has the rights to defend him. He may bring an

    representative on behalf of him to represent in front of the enquiry officer. The representative

    for the delinquent employee should be an co-worker. An outsider is not allowed to represent

    the delinquent employee in front of the enquiry officer. The management representative (MR)

    has to prove the charges against the delinquent employee by providing the witness in front of

    the enquiry officer. The witness brought by the management representative is called

    Management witness (MW). The delinquent employee has the rights to cross examine the

    management witness at the same day itself.

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    The delinquent employee can bring his witness in front of the enquiry officer.

    The witness brought by the defense counsel is called Defense witness (DW). The

    management representative can cross examine the defense witness. All these proceeding will

    be recorded by a typist. After hearing both the management representatives and the Defense

    counsel the enquiry officer will decide whether the employee is guilty or not. The report will

    be submitted to the management HR-President. The HR President will implement the report

    if the employee is found guilty. He will then issue an second show-cause notice to the

    delinquent employee. If the delinquent employee accepts the charges then lesser punishment

    will be given to him.

    4.6 Employee Relations:

    Employees are among an organization's most important audiences

    with the potential to be its most effective ambassadors. Employee Relations are practices or

    initiatives for ensuring that Employees are happy and are productive. Employee Relations

    offers assistance in a variety of ways including employee recognition, policy development

    and interpretation, and all types of problem solving and dispute resolution.

    An effective employee relation involves creating and cultivating a motivatedand productive workforce. People are generally motivated from within, but what can you do

    to help foster the type of environment where employees thrive, enabling your company to

    outperform the competition. Employee Relations starts with determining the type of

    workplace the company wants. It starts by considering what the company wants its

    employees to say about working for the company. In a competitive market, it is important to

    that employees dont feel that they might be treated more fairly elsewhere. After all retention

    is one of the major functions of HRM.

    By considering what the company wants employees to say about working for it

    gives shape to the companys culture. The company culture conveys organization's core

    values to its employees, customers, vendors, and community.

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    In addition to the workplace climate, the company also considers the types of

    processes or systems it wants to employ within the workplace to support the company culture

    and enhance the working relationship that exists between the company and its workforce.

    Such systems could include communications, policies, training, and development.

    Also, an essential step in building effective Employee Relations is to evaluate the

    human, financial and other resources available that reinforce the values and guiding

    principles the company wants echoed throughout the organization. For example, what type of

    supervisors and managers does it believe can bring out the best in people and projects?

    Traditionally Employee Relations programs were centered around labor union relations.

    Today, Employee Relations does not necessarily involve unions. However, it does involve

    cultivating the leadership style and workplace practices that help make union organizing

    activities a less attractive option for employees.

    Establishing workplace and management principles set the stage for fostering a

    successful work climate and establishing your company's culture. Effective Employee

    Relations is about establishing processes that address and nurture that culture.

    Employee Relations Programs At PRICOL:

    In order to maintain an effective employee relationship PRICOL organizes the

    following programs they are

    Summer camp for childrens of PRICOL employees.

    Employee retirement functions.

    Employee goodwill meeting.

    4.7 Wages and Salary Administration:

    4.7.1 Wage System:

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    The wages for the workers at Pricol Ltd. are paid in the following manner:

    They follow the Time based system on a daily basis. i.e. a prefixed rate per 8 man

    hour shift.

    In addition, the workers receive Overtime wages at 1.5 times their rate for every extra

    hour worked.

    Those working in the night shifts receive additional allowances like Night Shift

    Allowance and Food allowance.

    The workers can avail of incentives in the form of additional remuneration in

    accordance with the Piece rate system followed by the company.

    Other benefits the workers receive include Stautory benefits like Provident Fund

    where the Worker and the Company contributes 12% of the basic wage each.

    Employee State Insurance (ESI) is also provided to the workers at 6.75% of gross

    wages; 1.75% and 4.75% contributed by the both the employee and employer

    respectively.

    They also receive Bonus at 8.33% as per Government norms, disbursed usually before

    the Diwali, to a maximum of Rs. 3500/-.

    4.7.2 Salary System:

    The staff and other managerial employees receive their prefixed Salary every

    month, depending on their qualification and experience. They generally are not availed of any

    allowances. However, their salaries are revised every year after their performance appraisals.

    In addition to the above, both the workers and staff are automatically enrolled

    into the Pension scheme, which they can avail after a minimum of 10 years of service. They

    are entitled to receive the full pension benefits after a minimum of 25 years of service and

    after attaining an age of 58 years.

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    4.8 Statutory And Non-Statutory Welfare:

    4.8.1 Statutory Welfare Schemes:

    The statutory welfare schemes practiced in PRICOL includes the following:

    1. Drinking Water: At all the working places safe hygienic drinking water is provided.

    2. Facilities for sitting: In every organization, especially factories, suitable seating

    arrangements are provided.

    3. First aid appliances: First aid appliances are provided and are readily assessable so

    that in case of any minor accident initial medication can be provided to the needed

    employee.

    4. Latrines and Urinals: A sufficient number of latrines and urinals are provided in the

    office and factory premises and are also maintained in a neat and clean condition.

    5. Canteen facilities: Cafeteria or canteens are provided to the employer so as to

    provide hygienic and nutritious food to the employees.

    6. Spittoons: In every work place, such as ware houses, store places, in the dock areaand office premises spittoons are provided in convenient places and the same are

    maintained in a hygienic condition.

    7. Lighting: Proper and sufficient lights are provided for employees so that they can

    work safely during the night shifts.

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    8. Washing places: Adequate washing places such as bathrooms, wash basins with tap

    and tap on the stand pipe are provided in the port area in the vicinity of the work

    places.

    9. Changing rooms: Adequate changing rooms are provided for workers to change

    their cloth in the factory area and office premises. Adequate lockers are also provided

    to the workers to keep their clothes and belongings.

    10.Rest rooms: Adequate numbers of restrooms are provided to the workers with

    provisions of water supply, wash basins, toilets, bathrooms, etc.

    4.8.2 NON STATUTORY SCHEMES:

    The various non statutory welfare schemes practiced in PRICOL include the following:

    1. Personal Health Care (Regular medical check-ups): PRICOL provide the facility

    for extensive health check-up.

    2. Flexi-time: The main objective of the flextime policy is to provide opportunity to

    employees to work with flexible working schedules. Flexible work schedules are

    initiated by employees and approved by management to meet business commitments

    while supporting employee personal life needs

    3. Employee Assistance Programs: Various assistant programs are arranged like

    external counseling service so that employees or members of their immediate family

    can get counseling on various matters.

    4. Harassment Policy: To protect an employee from harassments of any kind,

    guidelines are provided for proper action and also for protecting the aggrieved

    employee.

    5. Maternity Leave Employees can avail maternity or adoption leaves. P

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    5. INDUSTRY ANALYSIS

    5 INDUSTRY ANALYSIS

    5.1 Market Size:

    The global automotive component manufacturing industry is estimated to have

    a market size of around $1.2trillion. Ford Motors, Delphi Corporation, Caterpillar, Cummins,

    International Truck and Engine Corporation and last but not the least General Motors (GM)

    are some of the leading global automobile components manufacturers of the world. With

    importations of components worth $69 billion a year, the US stands at the top of all the auto

    component markets the world over.

    The Indian auto component industry is one of India's sunrise industries with

    tremendous growth prospects. From a low-key supplier providing components to the

    domestic market alone, the industry has emerged as one of the key auto components centers

    in Asia and is today seen as a significant player in the global automotive supply chain. India

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    is now a supplier of a range of high-value and critical automobile components to global auto

    makers such as General Motors, Toyota, Ford and Volkswagen, amongst others. As per an

    Automotive Component Manufacturers Association of India (ACMA) report, the turnover of

    the auto component industry was estimated at over US$ 19.1 billion in 2008-09 with a

    growth rate of 6.1% against financial year 2007-08.

    The auto-component industry has been making rapid strides towards

    achievement of world-class Quality Systems by imbibing ISO 9000/ISO 14001/QS 9000/TS

    16949 Quality Systems. Till now 564 companies in ACMA membership have been certified

    to ISO 9001/9002, 186 companies awarded to ISO 14001, 397 companies have been certified

    with TS 16949, 60 companies have been certified with OHSAS 18001, 11 companies won

    the Deming prize, 1 company won Japan Quality Medal and 15 companies won the JIPM

    Excellence award. These 564 companies contributing 77% comes under the organized

    sector, whereas there are about 6300 unorganized players in the form of SMEs contributing

    23% to the Indian Auto-component industry output.

    There are about 107 key players in Tamilnadus Auto Component Industry

    with an investment of about Rs.36000 million ($ 800 million). The output is US $ 1,2 billion

    out of which the exports are US $ 140 million. The auto component industry in Tamilnadu

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    provides employment to about 45,000 people. More than 50% of the companies are ISO

    certified while 26% are QS certified

    It is estimated that there are about 5000 auto-component SMEs in

    Coimbatore apart from major players like Pricol, LGB, Elgi Equipments and Roots. These

    5000 SMEs turnover is around Rs. 500 crore.

    5.2 Competitive Analysis:

    The Indian automobile component market has encountered swift growth for

    the past 5 years, which is driven by a quantum leap in the demand for vehicles and a sharp

    rise in exports. Though the automobile parts industry is highly fragmented, however industry

    is capable enough to fulfill the rising indigenous demand and compete in the global forum

    that paved the way for national component manufacturers to become the original equipment

    manufacturer (OEM) and Tier 1 supplier. The output of the industry was estimated at 19

    billion with the growth rate of 6.1 per cent for the financial year 2008-09, whereas The global

    output for automobile components is estimated to reach $742.8 billion in 2010. As per

    McKinsey Report, Indian Auto Parts Industry is anticipated to grow up to USD 33-40 Billion

    by 2015 including exports revenue.This will raise Indias share in the global auto component

    market from 1 per cent to 3 per cent by 2015-2016. The growth rate is slow because of

    various financial and legal issues. In Coimbatore region alone there are nearly 5000 auto-

    component SMEs. The competition is very strong this makes the week company to fall by

    wayside.

    5.3 Technology Issues:

    While many organized players in auto-component industry are able to upgrade

    their technology but SME sector auto component companies have not been able to upgrade

    technology due to various reasons. In the highly competitive markets, this has started

    impacting

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    their business adversely. The government should encourage Automobile companies to work

    with the SME auto component manufacturers (as a part of their commitment to the industry)

    in upgrading their manufacturing facilities and capabilities. ACMA has started an initiative in

    this direction by putting up a system in place where in experienced professionals from large

    auto component manufacturing companies work full time for a year closely with a number of

    auto component manufacturers guiding them to improve the productivity, meet quality

    standards and manage cost. This initiative is helping small and medium auto component

    manufacturers move up the value chain.

    5.4 Finance Related Issues:

    5.4.1 Availability of Capital and Cost of the Capital

    In the wake of entry of global auto component manufacturers in India, technology

    up-gradation involving huge investments has become a necessity for the SME auto

    component companies. Many Indian SMEs in auto component sector are facing challenges in

    getting credit and credit at a low cost. Many companies are finding it difficult to get

    necessary financial resources from banks or venture capitalists. Inability of these companies

    in getting credit has led to difficulties for such companies. The companies need to upgrade

    their technology in order to remain competitive in global market.

    The manufacturers feel that the rate of interest for working capital should be less.

    The finance is available at high interest rate (nearly 12%), which is very high in comparison

    to other countries. The rate of interest has relationship with the level of modernization, high

    technology adoption and professional management of the companies. The challenge of

    getting credit from banks is not so acute for the companies having processes and advanced

    technology, which manufactures high quality products for major OEMs. Initiatives to rate the

    SMEs could help the better SMEs over come this challenge. Banks have been reported to be

    open to not only providing funds quickly but also offer good deal on interest rate to SMEs

    getting better rating by the SME Rating Agency of India Limited (SMERA). SMEs in auto-

    component sector can also benefit from the scheme.

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    5.4.2 Duty drawback and incentives

    Auto component exporters find duty drawback a cumbersome process. It requires

    dealing with too many procedures and offices. For relatively small players, at times the

    expenditure incurred on follow-up is higher than the duty drawback amount. The

    Government takes a long time to refund duty drawbacks and incentives. Right now it takes

    anywhere between 3 months to 6 months to get duty drawback amount. The industry is

    looking for less time in getting duty drawbacks and other incentives/refunds from the

    government offices. This will help them have enough capital for their requirements thereby

    reducing the cost of working capital and business expansion.

    5.4.3 Currency Fluctuations

    A recent phenomenon that has impacted export earnings of automotive component

    manufacturers is the appreciating Rupee. The component manufactures, who have entered

    into fresh negotiations with their customers, have started insisting on building in currency

    fluctuation clauses to counter further changes in the Indian Rupee.

    The contracts currently under negotiations are building in currency fluctuation

    clauses. Previously this was not a common practice, particularly since no one anticipated this

    kind of appreciation of the rupee. Most automotive component manufacturers working under

    old contracts are asking their customers to revise pricing based on rupee appreciation. Some

    of the Indian auto components makers are rushing to re-open key supply contracts with their

    U.S.-based customers as the rising rupee is sending the entire industry into a tailspin.According to the Automotive Component

    Manufacturers Association of India, exports to US companies are worth over INR 2,000

    Crores. As Indian auto component makers work in a very competitive environment with thin

    margins, many companies, which do not have currency fluctuation clause built into the old

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    agreements, are now trying to re-negotiate the contracts. But there are other manufacturers

    who are trying to shift their focus to the Euro.

    Indian automotive component companies are trying to balance out this impact by

    focusing on European exports while decreasing its exports to the U.S. Even though the Euro

    is emerging as the most preferred currency for Indian exports, there could be hurdles to move

    away from the U.S. Dollar. Some companies who have their exports in Pounds and Euros

    have not been impacted due to the appreciating Rupee. The dual trap of high interests and the

    appreciating Rupee have squeezed the margins of the exporters.

    The currency fluctuation and the appreciation of the Indian Rupee in comparison to

    the Dollar have affected the profitability of Indian companies dependent on the U.S market.

    Since China is not having the floating rate currency system for the Industry, the Chinese

    industry is insulated from these fluctuations.

    5.4.4 Frequent changes in DEPB rates

    The duty entitlement passbook (DEPB) scheme is regarded as a positive initiative

    of the Government. Exporters keep the available benefits from this duty in mind while

    negotiating the orders with the foreign customers and any change in it affects the profitability

    of the company. There is also a time lag between applying for it and getting the benefit. The

    cost of agents and time cost nullifies its benefits. As a result, quite often, it remains only a

    notional income.

    5.5Manpower/ Human Resource Related Issues:

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    5.5.1 Availability of trained manpower and productivity

    A large chunk of available manpower from the automotive industry is going to either

    the service industry or to the new manufacturing units that have come in recent past.

    Retention of skilled manpower is proving to be a challenge. If companies do not plan ahead,

    there may be disruptions in production. The quality requirements from the industry are

    changing with the global requirements and achieving skill development for a new set of

    employees on a regular basis is a challenge.

    For improving productivity, need for skill development and attitudinal training of

    work force is being increasingly felt by the industry. Production heads of auto component

    manufactures feel that job security has vitiated the work culture at the lower level. The

    workforce at lower level spends time less productively during working hours. Some experts

    have also echoed similar views.

    5.5.2 Rising wage cost:

    Minimum wages in several states has gone up by over thirty percent in the last two

    years. This has severe implications on the profitability of the companies employing low wage

    earning workers. The implications are equally relevant for automated manufacturing systems

    because of the cascading effect of minimum wages among the middle level and senior level

    employees.

    5.5.3 Labour laws:

    SMEs in auto-component sector feel that the current labour laws have resulted in

    poor productivity in India. These companies expect productivity friendly labour laws. Thegeneral feeling is that Chapter 5B of the industrial dispute act should be done away with.

    Under provisions of this act, companies can not retrench more than 100 workers with out

    prior permission from the Government even if the company does not have enough work for

    them. At few places, the Government is pressurizing companies to make the contract labour

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    permanent, which the companies cannot afford. The Government of India is already working

    on a policy to mitigate the situation.

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    6. Conclusion

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    6. Conclusion:

    The study was conducted with the view to understand the role of HR department

    in Pricol and has given us an exposure to the practical applications of the HRM concepts. It

    has helped me in understanding the importance of HRD in an organization. The maintenance

    of the valuable assets, the human resource is a tedious task that involves a lot of

    industriousness, dedication, presence of mind and people skills. This study has improved my

    confidence by its successful completion to undertake such studies in the future.

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    BIBLIOGRAPHY

    BIBLIOGRAPHY

    Text books :

    C.B.Mamoria, (2008) Personnel Management (2nd edition), Himalaya Publishing House,

    New Delhi.

    L.M. Prasad, (2008) Organizational Behaviour, (4th Revised Edition), Sultan Chand & sons,

    New Delhi.

    V.S.P Rao, (2008) Human Resource Management, (2nd Edition), Excel Books.

    Websites:

    http://www.pricol.com/companyprofile.html

    http://www.acma.org/autocomponentindustry.html

    http://citehr.com/employeewelfarearticle.html

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    http://wikipedia.com/indian-automobileindustry.html

    http://www.indiainbusiness.nic.in/industry-infrastructure/autoindustry.html

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    APPENDICES