Social Security Schemes in BHEL

8/2/2019 Social Security Schemes in BHEL

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A Project Report on :

" Study on Social Security & Welfare Schemes in BHEL "

2011-2012Submitted for the partial fulfillment of

Master of Business Administration (MBA)

of Maulana Azad National Institute of Technology,

Bhopal

Submitted By

Ankit Michael Samuel4th Sem MBA, MANIT

Scholar Number: 102103107


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NIT Bhopal- Management Studies Department

Table of ContentsDeclaration i

Certificate ii Acknowledgements Preface iv Profile of the Organization

1.1 Company History ............................................. 13

1.2 Manufacturing Units of BHEL........................... ...... 14

1.3 Introduction to BHEL Bhopal.............................. .......15

1.4 BHEL, a candidate for Maharatna Company........ .... 17BHEL Human Resource Departments

2.1 Introduction....................................................................19

2.2 Descriptions of HR Departments..................................19

2.3 Functions of HR Departments........................................28

2.4 Levels of Employees .......................................................30

2.5 Organizational Hierarchy................................................. 32

2.6 Human Resource Practices in BHEL..............................33

I. Study on Social Security & Welfare Schemes inBHEL.......................................................................39


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Chapter 1

1.1 Introduction.................................................................441.2 Welfare Briefing.....................................................45

1.2.1 Welfare Schemes in BHEL

1.2.1.1 Statutory welfare scheme

1.2.1.2 Non- Statutory Welfare Scheme

1.3 Statutory labor welfare facilities................................51

1.4 Non statutory labor welfare facilities............................531.5 Objectives of the Study.................................................541.6 Social Security Schemes in BHEL...............................55

Chapter 2

2.1 Social Security Schemes in BHEL...............................56

2.1.1 Group Saving Linked Insurance Scheme (GSLIS)2.1.1.1.1 Amount Insured2.1.1.1.2 Premium Per Month. (In Rs.)

2.1.2 Death Relief Fund (DRFS)2.1.3 Employee Deposit Linked insurance (EDLI)

2.1.3.1 Amount Insured2.1.4 Group Insurance Scheme (GIS)

2.1.4.1 Amount Insured

2.1.5 Group Personnel Accident Policy(GPAP)2.1.5.1 ICICI LOMBARD

2.1.5.1.1 Compensation

2.1.5.1.2 The coverage for employees

2.1.5.1.3 Process


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2.1.6 Gratuity 2.1.6.1 Gratuity Calculation:

2.1.7 The E mployees Family Pension Scheme

2.1.7.1 Calculations

2.1.7.2 Benefits

2.1.8 Provident Fund2.1.8.1 Provident Fund Calculations

2.1.9 Earned Leave2.1.10 Retired Employees' Contributory Health Scheme

2.1.11 Act: The workmens Compensation Act, 1923 2.1.11.1 Main Provisions2.1.11.2 Compensation2.1.11.3 The process of providing T he

Workmens Compensation in BHEL

2.1.11.4 The Claim process

2.1.11.4.1 Preparation of Accident Report

and Compensation Amount

2.1.11.4.2 Procedure

2.1.10 Retired Employees' Contributory Health Scheme2.1.10.1 Sample Forms (to be filled by employees)


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Chapter 3

3.1 Live Case Handling in BHEL.............................................88

3.1.1 Accident case

3.1.1.1 Rules of half monthly compensation(HMC) Calculation.

3.1.1.2 Rules for Earned Leave Calculation

3.1.1.3 Rules for Lumsum Payment

3.1.2 Death case

3.2 Finding of the Study............................................................93

3.3 Suggestions...........................................................................95

3.4 Conclusion...........................................................................96

II Bibliography ...........................................................................98


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Declaration

I Ankit Michael Samuel student of 4th Sem fromDepartment of Management Studies of Maulana AzadNational Institute of Technology, Bhopal. Here by declare that I did my major project on " Study onSocial Security & Welfare Schemes in BHEL" underthe guidance of Amit Banerjee.

Yours Sincerely Ankit Michael Samuel

4th Sem MANIT (DOMS), Bhopal


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CertificateT his is to certify that Mr. Ankit Michael Samuel student

of M.B.A. of MANIT, Bhopal has successfully completedhis major project as a part of professional studies onproject "Social Security Schemes in BHEL".

This project work has been carried out under thesupervision and is of sufficiently high standard to warrant ispresentation for the examination leading to degree of M.B.A. of MANIT university of Bhopal.

I wish them a successful professional career.

Date:

Shri Amit Banerjee Ankit Michael

Samuel

(Associate Professor (MANIT, Bhopal)

Management Studies Department,

MANIT,Bhopal)


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Preface

Personnel Management occupies the prime position of all

disciplines in Management which deals with many resources.

These resources were expanded to include, among others, the

following: Men, materials, machinery, money, etc

Human beings play a dual role- a resource as well as a motive

force for all other resources. They are also responsible for

manipulating all other resources by way of developing, utilizing,

commanding and controlling them like materials, machines,

money, information, land, infrastructure, etc. Human resources

management (HRM) plays a decisive role in to manpower

development: be it labors, students, educated, unemployed,supervisor or manager. Proper H.R.M. can develop right type of

shop floor ethos and values which improve productivity and

personal satisfaction of employees.

BHEL is one of the of India's nine largest Public Sector

Undertakings or PSUs, known as the Navratnas or the nine

jewels. BHEL, Bhopal is the vast bank of knowledge. It is the
http://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Navratnashttp://en.wikipedia.org/wiki/Navratnashttp://en.wikipedia.org/wiki/Navratnashttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Public_Sector_Undertaking


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perfect place to learn about the Management of the Manpower

Resources. The knowledge gained here is going to be very

helpful in making a successful professional career.

I had taken the topic:

Project on Social Security Schemes in BHEL.

The main purpose of this research is to know Performance

Appraisal System in BHEL. I had tried to put my best efforts tocomplete this task on the basis of skills achieved during studies

in the institute and the knowledge provided by the respective

employees of HRM Department in the BHEL, Bhopal. I had

put my maximum effort to gain the accurate data from the

BHEL, Bhopal. If any error or mistakes found in study and in

collecting data kindly ignore.


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Acknowledgement

The successful completion of our project would have been a

dream, devoid of the worthwhile help and ample cooperation of

various people, who are expert in their respective fields. I

express my gratitude to the Personnel Department of BHEL,

Bhopal for giving me an opportunity to carry out this project in

their organization.

The inception of the whole process started with, Sh. K.K.Nair

(AGM,HRM), his earnest efforts, which motivated us to a great

deal. So, I express my deep sense of gratitude toward his

innovative ideas.

My project in charge Sh. Prajjal Adak , a man of simplicity and

sincerity, whose enthusiasm toward my project provoked me

throughout to commit my best efforts and achieve the desired

results. Who always showed and directed me towards right path.

My commitment to the project is a result of patience, hard work,


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and dedication as inspired by him. I put deep benevolence and

gratitude to Sh.Prajjal Adak.

And, Of course Shri Amit Banerjee , our MANIT Faculty whoinspired me of giving my best each time. He is a man of

discipline and great source of knowledge.

I would also like to thanks Sh. M.Isadore(DGM), Sh. Nisar

Haidar(DGM), Smt. Surekha Banchhor(Manager), Sh.AmolChoubey(Executive),Sh. K.R Divya(Dy.Officer) for being the

guiding and encouraging figures all through the duration of this

project. Without their cheering and Invaluable insight into this

project, the project work would not have been accomplished.

At last, but not the least, it is really a proud privilege for us to

express our deepest sense of gratitude and external gratefulness

to our esteemed faculty members, family members & friends

who provided proper guidance for the project work and woke

enthusiasm for the topic.

Date:


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Profile of the Organization


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1.1 Company History

Bharat Heavy Electricals Limited (BHEL ) (BSE: 500103,

NSE: BHEL) is one of the oldest and largest state-ownedengineering and manufacturing enterprise in India in the energy-related and infrastructure sector which includes Power, Railways, Transmission and Distribution, Oil and Gas sectors and many more. It is the 12th largest power equipment manufacturer in the

world. BHEL was established more than 50 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India.The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. 74% of the total powergenerated in India is produced by equipment manufactured by BHEL.

It is one of India's nine largest Public Sector Undertakings orPSUs, known as the Navratnas or 'the nine jewels.
http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500103http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=BHEL&section=7http://en.wikipedia.org/wiki/Engineeringhttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Power_Generationhttp://en.wikipedia.org/wiki/Railwayshttp://en.wikipedia.org/wiki/Electricity_distributionhttp://en.wikipedia.org/wiki/Petroleum_industryhttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Navratnashttp://en.wikipedia.org/wiki/Navratnashttp://en.wikipedia.org/wiki/Navratnashttp://en.wikipedia.org/wiki/Navratnashttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Petroleum_industryhttp://en.wikipedia.org/wiki/Electricity_distributionhttp://en.wikipedia.org/wiki/Railwayshttp://en.wikipedia.org/wiki/Power_Generationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/Engineeringhttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=BHEL&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500103http://en.wikipedia.org/wiki/Bombay_Stock_Exchange


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1.2 Manufacturing Units of BHELMain Manufacturing Facilities

Bhopal (Madhya Pradesh) Bharat Heavy Electrical Limited, Ranipur, Haridwar

(Uttarakhand) [10] Bharat Heavy Electricals Limited, Ramachandrapuram,

Hyderabad ( Andhra Pradesh) Jhansi (Uttar Pradesh) High Pressure Boiler Plant and Seamless Steel Tube Plant,

Tiruchirapalli (Tamil Nadu) [11] Boiler Auxiliaries Plant, Ranipet (Tamil Nadu) Electronics Division and Electro Porcelain Division,

Bangalore (Karnataka) Jagdishpur (Uttar Pradesh) Rudrapur (Uttrakhand) Industrial Valves Plant, Goindwal (Punjab) Bharat Heavy Plates and Vessels Limited (Vizag)
http://en.wikipedia.org/wiki/Bhopalhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Bharat_Heavy_Electrical_Limited,_Ranipurhttp://en.wikipedia.org/wiki/Haridwarhttp://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-9http://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-9http://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-9http://en.wikipedia.org/w/index.php?title=Ramachandrapuram,_Hyderabad&action=edit&redlink=1http://en.wikipedia.org/wiki/Hyderabad,_Andhra_Pradeshhttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Jhansihttp://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/w/index.php?title=High_Pressure_Boiler&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Seamless_Steel_Tube&action=edit&redlink=1http://en.wikipedia.org/wiki/Tiruchirapallihttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-10http://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-10http://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-10http://en.wikipedia.org/w/index.php?title=Boiler_Auxiliaries&action=edit&redlink=1http://en.wikipedia.org/wiki/Ranipethttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Porcelainhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Jagdishpurhttp://en.wikipedia.org/wiki/Rudrapurhttp://en.wikipedia.org/wiki/Uttrakhandhttp://en.wikipedia.org/wiki/Valveshttp://en.wikipedia.org/wiki/Goindwalhttp://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/w/index.php?title=Bharat_Heavy_Plates_and_Vessels_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Vizaghttp://en.wikipedia.org/wiki/Vizaghttp://en.wikipedia.org/w/index.php?title=Bharat_Heavy_Plates_and_Vessels_Limited&action=edit&redlink=1http://en.wikipedia.org/wiki/Punjab_(India)http://en.wikipedia.org/wiki/Goindwalhttp://en.wikipedia.org/wiki/Valveshttp://en.wikipedia.org/wiki/Uttrakhandhttp://en.wikipedia.org/wiki/Rudrapurhttp://en.wikipedia.org/wiki/Jagdishpurhttp://en.wikipedia.org/wiki/Karnatakahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Porcelainhttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Ranipethttp://en.wikipedia.org/w/index.php?title=Boiler_Auxiliaries&action=edit&redlink=1http://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-10http://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tiruchirapallihttp://en.wikipedia.org/w/index.php?title=Seamless_Steel_Tube&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=High_Pressure_Boiler&action=edit&redlink=1http://en.wikipedia.org/wiki/Uttar_Pradeshhttp://en.wikipedia.org/wiki/Jhansihttp://en.wikipedia.org/wiki/Andhra_Pradeshhttp://en.wikipedia.org/wiki/Hyderabad,_Andhra_Pradeshhttp://en.wikipedia.org/w/index.php?title=Ramachandrapuram,_Hyderabad&action=edit&redlink=1http://en.wikipedia.org/wiki/Bharat_Heavy_Electricals_Limited#cite_note-9http://en.wikipedia.org/wiki/Uttarakhandhttp://en.wikipedia.org/wiki/Haridwarhttp://en.wikipedia.org/wiki/Bharat_Heavy_Electrical_Limited,_Ranipurhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Bhopal


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1.3 Introduction to BHEL Bhopal

Heavy Electrical Plant, Bhopal is the mother plant of Bharat Heavy Electricals Limited, the largest engineering andmanufacturing enterprise in India in the energy-related andinfrastructure sector, today. It is located at about 7 kms. fromBhopal Railway station, about 5 kms. from Habibganj Railway station and about 18 kms. From Raja Bhoj Airport. Withtechnical assistance from Associated Electricals (India) Ltd., a UK based company, it came into existence on 29 th of August,1956. Pt. Jawaharlal Nehru, first Prime minister of India dedicated this plant to the nation on 6 th of November, 1960.

BHEL , Bhopal with state-of-the-art facilities, manufactures widerange of electrical equipments. Its product range includes

Hydro, Steam, Marine & Nuclear Turbines, Heat Exchangers,Hydro & Turbo Generators, Transformers, Switchgears, Controlgears, Transportation Equipment, Capacitors, Bushings,Electrical Motors, Rectifiers, Oil Drilling Rig Equipments andDiesel Generating sets.


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BHEL, Bhopal certified to ISO: 9001, ISO 14001 and OHSAS18001, is moving towards excellence by adopting TQM as perEFQM / CII model of Business Excellence. Heat Exchanger

Division is accredited with ASME U Stamp. With the slogan of Kadam kadam milana hai, grahak safal banana hai, it iscommitted to the customers.

BHEL Bhopal has its own Laboratories for material testing andinstrument calibration which are accredited with ISO 17025 by NABL. The Hydro Laboratory, Ultra High Voltage laboratory and Centre for Electric Transportation are the only laboratories

of it are in this part of the world.

BHEL Bhopal's strength is its employees. The company continuously invests in Human Resources and pays utmost attention to their needs. The plant's Township, well known forits greenery is spread over an area of around 20 sq kms. andprovides all facilities to the residents like, parks, community halls, library, shopping centers, banks, post offices etc. Besides,free health services are extended to all the employees through350 bedded (inclusive of 50 floating beds) Kasturba Hospital andchain of dispensaries.


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1.4 BHEL, a candidate for Maharatna Company

For getting Maharatna status, a company needs to have a three- year track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more thanRs 25,000 crore. It should also be a listed firm.

"It (to accord Maharatna status to BHEL) is being examined and will be done shortly. BHEL is likely to fulfill that criteria soon,"Patel added.

BHEL's turnover was Rs 33,173.34 crore in the fiscal 2009-10.However, the company's annual average net profit was Rs 3,433crore during the last three years.

Its shares were trading at Rs 2192.5, down 0.05 per cent fromthe last close at the Bombay Stock Exchange.

Maharatna scheme was announced by the government inDecember 2009 to give more operational freedom to the top-

performing PSUs.

When that several PSUs lack the required number of independent directors on their board, Patel said the positions

would be filled up soon.


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"Many PSUs have independent director vacancies. Theindependent director position has to be fulfilled at the earliest and Department of Public Enterprises will make sure that all theposition have eminent people," he added.

As per the Clause 49 of the listing agreement betweencompanies and stock exchanges requires companies to haveindependent directors in half of the board positions.

Some large listed state-run companies do not have the requirednumber of independent directors.

This has impeded the government's effort to divest part of its

stake in public sector firms, forcing it to name retiredbureaucrats as independent directors.

Out of 47 listed government companies, the boards of 17companies like Indian Oil, BHEL and SAIL do not have therequired number of independent directors," a recent government report had said.

There are 246 Central Public Sector Enterprises in the country,as on March 2009.


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BHEL Human Resource Departments

2.1 Introduction

Human resource is a term used to describe the individuals whomake up the workforce of an organization, although it is alsoapplied in labor economics to, for example, business sectors oreven whole nations. Human resources is also the name of thefunction within an organization charged with the overallresponsibility for implementing strategies and policies relating tothe management of individuals (i.e. the human resources). Thisfunction title is often abbreviated to the initials "HR".

2.2 Description of HR DepartmentsThe Human Resource Department of BHEL , Bhopal is

broadly divide into two Category :-

I.HRDC

II.HRM

I.HRDC (Human Resource Development Centre) :-

The principal objective of training and development division in

BHEL is to make sure the availability of a skilled and willing workforce to an organization. The training system in BHEL is

to create a smarter workforce and yield the best results.
http://en.wikipedia.org/wiki/Human_resource_managementhttp://traininganddevelopment.naukrihub.com/organization.htmlhttp://traininganddevelopment.naukrihub.com/organization.htmlhttp://en.wikipedia.org/wiki/Human_resource_management


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Human Resource Development Centre in BHEL performs the

following activities:-

1. Apprenticeship Training

2. Faculty Work

3. Vocational Training

4. Induction Training

5. Developmental Training for employees.

II.HRM (Human Resource Management):-

HRM covers the various departments, performing the different

functions, which are as follows:-

1.Establishment

2.Industrial Relations & Welfare

3.Human Resource Systems Development

4.Law

5.Administration

6.Others

6.a Policy


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6.b Single Window Cell

6.c Rajbhasha

6.d Contract Labour Cell

1. Establishment

All the Establishment Matters comes under this department . It

deals with a wide range of activities starting from induction of an

employee till retirement. It includes record keeping of all the

employees & its verification (as per required). For Example;

Sanction of leave , bus pass , higher qualification matters ,

passport , promotions , transfers , social security forms and their

nominations , loans etc.

2. Industrial Relations & Welfare

Industrial Relations is a multidisciplinary field that studies the

employment relationship. It is a bridge between workers and top

management. It focuses on labour relationship which includes

resolving the grievances of the workers. Contract Labour

Administration and Industrial Dispute Cases also comes under

it.

BHEL has various labour unions which are actively giving shape

to IR.The main Trade Unions are:-


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1.HMS (Hind Majdoor Sangh)

2.INTUC (Indian National Trade Union Congress)

3.KTU (Karamchari Trade Union)

4.CITU

5.AITUC

During all these years, Indian National Trade Union Congress (INTUC) had the monopoly over four other trade unions in theplant.

3. Human Resource Systems Development

It consist of all the functions like:-

a. Staffing (MPP, Recruitment , Placement & Exits)

Understanding & Over staffing reduces the competitive

efficiency of the business. Planning staff levels requires an

assessment of present and future needs of the organization be

compared with present resource and future predicted resources

which is accomplished by Man Power Planning .


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Recruitments is an essential & indispensable part of HR which

deals with hiring process, which may be from outside or insidethe company. Internally through transfers, promotions etc. , and

externally through campus selection , written examinations and

interviews etc.

b. Performance Management

BHEL being a very big & widely spread organization which haslarge number of manpower. Thus to appraise its performance

need a comprehensive & exhaustive method.

Performance appraisal in BHEL is done in 2 ways:-

Supervisors and Workmen : - ACR (Annual Confidential Report)

Executives : - e Map

c. New Business Initiative

BHEL have a separate department for new Business technique

which performs various functions like designing SAP , ERP , e-Map , PCMM etc, exclusively for BHEL.

d. Rewards & Recognition


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e. Career Planning

f. Succession Planning

g. Competency Management

h. Compensation Management

i. Communication Systems

4. Law

This Department performs all the legal activities of the BHEL. It

covers:-

Litigation Regarding Service Matters

Arbitration

Court Cases

Legal Advices

Contract Labour Matters

5. Administration

For the welfare of the employees the many other facilities were

provided by the BHEL which is administered very efficiently.

They are as follows:-


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Township Administration

Office Administration

Hospital Administration

Sports Administration

Transport

6. Others

There were so many other departments of HR which are working for the benefits of the employees. It facilitates the

information to the employees, which indirectly encourage the

employees to perform their best. They are as follows:-

6. a. Policy

Policy matters include check on various implementation

processes. It deals with endorsing & distribution of Corporate

HR circulars etc. Many concepts like e-Map, competency

mapping , HR Software packages (SAP , ERP etc) are its

concern areas.


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6. b. Single Window Cell

This department facilitates the convenience of work dealt by an

employee who is unable to go to different cell to process his/her

need. So, all the work can be done through a single window or

cell.

6. c. Rajbhasha

Hindi speaking enables proper communication & flow of work

within an organization, where majority of people are Hindi

speaking. BHEL being a governmental organization needs to do

its entire works (as far as possible) in Hindi.

6. d. Contract Labour Cell

BHEL employee structure comprises many workers who are not

the employees of it. They are working on contract basis. A large

chunk of work is done by them thus they are very crucial to the

organization. It can be of two types:-

a) Job Contract- Registered Societies of contract labour supply

this kind of labours.


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b) Work Contract These are brought on temporary basis on

fixed priced order value by the contractor.

2.3 Functions of Some HR Departments

1. Recruitment Department

Recruitment refers to the process of attracting, screening,and selecting qualified people for a job. For somecomponents of the recruitment process, mid- and large-sizeorganizations often retain professional recruiters oroutsource some of the process to recruitment agencies.

The stages in recruitment include sourcing candidates by advertising or other methods, screening potentialcandidates using tests and/or interviews, selecting candidates based on the results of the tests and/orinterviews, and on-boarding to ensure the candidate is ableto fulfill their new role effectively.

2. Manpower Planning Department

Manpower Planning which is also called as Human ResourcePlanning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for

which they are suited for the achievement of goals of theorganization. Human Resource Planning has got an important place in the arena of industrialization. Human ResourcePlanning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:
http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Recruiterhttp://en.wikipedia.org/wiki/Employment_agencyhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Employment_agencyhttp://en.wikipedia.org/wiki/Recruiterhttp://en.wikipedia.org/wiki/Employment


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1. Analysing the current manpower inventory 2. Making future manpower forecasts3. Developing employment programmes4. Design training programmes

3. Promotion Department

A promotion is the advancement of an employee's rank orposition in an organizational hierarchy system. Promotionmay be an employee's reward for good performance i.e.positive appraisal.

Before a company promotes an employee to a particularposition it ensures that the person is able to handle theadded responsibilities by screening the employee withinterviews and tests and giving them training or on-the-jobexperience.

A promotion can involve advancement in terms of designation, salary and benefits, and in some organizationsthe type of job activities may change a great deal. Theopposite of a promotion is a demotion.

4. Transfer Department

A transfer is a lateral move to a position in the same classifiedpay range (classified position) or to a position with comparableduties and responsibilities (non-classified positions).

5. Policy Department

A policy is typically described as a principle or rule toguide decisions and achieve rational outcome(s). The term
http://en.wikipedia.org/wiki/Rank_orderhttp://en.wikipedia.org/wiki/Hierarchyhttp://en.wikipedia.org/wiki/Demotionhttp://en.wikipedia.org/wiki/Demotionhttp://en.wikipedia.org/wiki/Hierarchyhttp://en.wikipedia.org/wiki/Rank_order


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is not normally used to denote what is actually done, this isnormally referred to as either procedure or protocol.

Whereas a policy will contain the 'what' and the 'why',

procedures or protocols contain the 'what', the 'how', the'where', and the 'when'. Policies are generally adopted by the Board of or senior governance body within anorganization where as procedures or protocols would bedeveloped and adopted by senior executive officers.

A Policy can be considered as a "Statement of Intent" or a "Commitment". For that reason at least, we can be heldaccountable for our "Policy"

2.4 Levels of Employees

Executive

Supervisors

Workers


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Executive Category:E1 Engineer/Executive Trainee

E1A Engineer/Executive /Officer

E2 Sr.Engineer/Executive /Officer

E3 Deputy Manager

E4 Manager

E5 Sr.Manager

E6 DGM

E6A Sr.DGM

E7 AGM

E8 GM

E9 Executive Director

Supervisors Category:S1 Assistant Engineer Grade 2

S2 Assistant Engineer Grade 1S3 Deputy Engineer

S4 Additional Engineer Grade 2

S5 Additional Engineer Grade 1

S6 Sr.Additional Engineer Grade 2

S7 Sr.Additional Engineer Grade 1


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Workers Category: A1/B1 Unskilled Labours/Attendant

A2/B2 Semi-Skilled Labours

A3/B3 Artisan Grade 4




A7/B7 Technician

A8/B8 Sr. Technician

A9/B9 Master Technician

A10/B10 General Technician A11/B11 Chief Technician


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2.5 Organizational Hierarchy


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2.6 Human Resource Practices in

BHEL

1. Ensuring a Safe, Healthy and Happy Workplace

.In BHEL there is a system to capture the needs of employees

through Employee Perception Surveys on environmental factors

which are followed up by in-depth analysis, focused groupdiscussions and interactions with workforce so as to improve

their work environment. A full fledged WEX department

functions along with HR department to bring about these

changes. They have very recently introduced ESS which online

captures such requirements of employees on a Companywide

bases. BHEL has embarked upon a massive modernization of

its offices to suit the new age style of functioning

2. Creating an atmosphere of openness and knowledge sharing-

creative communication

To promote transparency BHEL has incorporated MECOM

(Management Employee Communication Meeting), at its Bhopal


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unit. This plan entitles each worker to a presentation which

facilitates open communication among workers and the senior

management. This unique practice welcomes free criticism,

appreciation, complaints and feedback from one and all.

BHEL intends to bring about a revolutionary change through the

incorporation of its new concept MECOM. BHELs initiative

is a step towards understanding the organization at every level of

management. It identifies the importance of its people and how

people are its greatest assets which will finally take the

organization to greater heights. Through this initiative, it seeks to

strengthen the character of disclosure and transparency so that

there is an unrestricted flow of information, which will create a

conducive atmosphere for employee as well as organizational

growth.

There are ship councils, canteen committee, township

committee etc to promote sharing and soliciting employees

ideas. There are specifically dedicated knowledge management

portals, a full scheme on developing knowledge workers, a

Mentoring scheme , a multi -skilling scheme; where sharing is

done on a very continuous basis.


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3. Developing an atmosphere of Performance linked payments

BHEL Reward performance through a very well documented

Reward Scheme that rewards both individual and groupperformance and certainly there are no rewards below a certain

level of performance. They have introduced a PRP scheme

based on which the employees are paid bonus linked to their

performance. There are many other schemes like IMPRESS

and an IPR (Patent) scheme that reward excellence in

performance.

4. Fair Evaluation System for Employees

BHEL e-MAP system ensures all the parameters of fair

Evaluation. All executives and supervisors are mapped through

their balanced score cards. The measurement is not only of performance but also that of quality of performance. We at

BHEL tend to measure behavioral traits too for identifying

futures leaders and specialists. The whole process provides

effective feedback leading to discussions and improvements.

There have been continuous improvisations in this scheme for

better and just evaluation.

5. Getting the right person in right time


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BHEL has been the first PSU to introduce an online system of

recruitment even at artisan level. This has ensured a very quick

yet transparent system of recruitment, they announce the results

the next day of written test or interview and today this stand as a

bench mark process amongst PSUs. They have gone into

exercises of identifying the core and non core areas for

recruitment, effective redeployment of existing manpower

through retraining. They have retainership scheme for retaining

the expert manpower much needed in the organization. Thus inBHEL we have been exploring all the resources to get the best

person in time and for the right job.

6. Training and development:

BHEL have invested hugely here. They have specially designed

focused training programmes at executive, supervisor and worker

level inductees. A full fledged system is in place to identify the

training needs of existing employees. Multi-skilling with a host of

behavioral training programmes forms the back bone of our

training objectives. BHEL mentoring scheme takes special care

of their endeavors like LEAN, DTC , 6 sigma, 5S have been

introduced through extensive training


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6. Compensation and benefits:

BHEL have been extremely good when it comes to pay packages

and benefits. The recent wage revision has led to a very handsome increase in salary of workers. Insurance coverage,

death relief, medical care , township facilities, parks, schools,

colleges, community centers, holiday homes, education fees,

libraries, various allowances, places of worship, extensive sports

club, swimming pool, Yoga Centre, cooperative societies etc. are

all various benefits that ensure at BHEL.

7. A culture of Continuous Improvement The PCMM model

and SAP for HR

BHEL have introduced a model called PCMM (People

Capability Maturity model) for continuous improvement of HR practices. The model is based CMM model practiced in software

industry and BHEL is first PSU to introduce this model for HR

practices. This shall hels in establishing the best form each HR

practice and that too uniformly across the organization. BHEL

have introduced SAP for HR function and HR deliverables are

now sourced through SAP only.

8. Care


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Swasth Karamchari Yojna


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I. Study on Social Security & Welfare Schemes in BHEL

1.1 Introduction

Social Security is one of the fundamental needs of the day.

Freedom and security against economic risk is the minimum that

must be secured in under developed economies as early as

possible.

In the view of International labor organizations, Social Securi ty

is that security which a society furnishes through appropriate

organization against certain risk to which its members are

exposed.

Social security is primarily a social insurance program providing

social protection or protection against socially recognized

conditions. It is a collective name for those measures, which a

society has provided to meet such contingencies .The earning

power of the workers may be affected by sickness, maternity,invalidity, employment injury, old age and death. It is not

possible for workmen individually to make adequate provisions


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against these risks. Therefore, the benefits of social security are

admissible to all.

Some important schemes for the Social Security of the workers are as follows:-

Group Saving Linked Insurance Scheme (GSLIS) Death Relief Fund (DRF) Employee Deposit Linked insurance (EDLI) Group Insurance Scheme (GIS)

The payment of Gratuity Act, 1972 The employees family pension scheme Provident Fund

1.2 Welfare

Dictionary meaning of welfare is exemption from calamity orenjoyment of health or prosperity. In other words welfare means

peoples health, happiness or comfort.

According to international labor organization Workers welfare

should be understood as meaning such services, facilities and

demenities which may be established in, or invicinity of an

undertaking to enable the persons employed there to perform

their working healthy congenial surrounding and provides all

voluntary acts by employer aimed at improvement and


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betterment of workers social moral and social economic and

intellectual conditions.

According to Royal Commission of labor The term welfare, asapplied to the industrial worker, is one which most necessarily is

elastic, bearing somewhat different interpretations in the degree

of industrialization of workers.

1.2.1 Welfare Schemes in BHEL

In compliance with the provisions of the factories Act 1948,

BHEL Bhopal has undertaken a number of welfare measures

for the welfare of its employees and their family members. The

various statutory & non statutory welfare measures are discussed

as below:-

1.2.1.1 Statutory welfare scheme

1. Washing facilities: - Washing facilities like soap, cleaning

powder are being provided for the workers at their work

place.2. Facilities for storing: - In all the manufacturing blocks as

well as in all annexes, the employees have been provided

with cupboard/almirahs to keep their personal belongings.


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3. Facilities for sitting: - Workers have been provided with

suitable sitting facilities while worker may find a pause to

rest.

4. First-aid & Ambulance room: - As on date 158 first-aid

boxes have been provided to manufacturing

blocks/annexes, canteens. These boxes are kept with

employees having knowledge of first-aid procedures with

training n medical care being provided to them of and on .

The contents of these boxes are periodically checked andfilled in as and when necessary.

5. Canteens: - there are 03 works canteen at present pulse

one staff canteen catering to the needs of employees.

Besides these, one canteen is functioning in Hospital for

the patients. These canteens supply Meals, tea, coffee,

snacks, and sweets. In works canteen No.3 special

provision for women employees has been made for their

meals, snacks etc.

6. Crche: - Adjacent to works canteen No.3 there isprovision for crche. Children up to the age of 6 years of

the working mother are kept from 7.00 am to 5.00 pm.


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Provision is made for fruits, biscuits, milk, meals to these

children. Presently about 30 children have been

accommodated in the crche.

7. Shelter, rest rooms and lunch rooms: - Both in works

canteen and in staff canteen suitable arrangements have

been made for workers who bring meals with them.

8. Labour welfare Officers: - Under Human Resources

Management Division 12 welfare offices and 16 labour

welfare supervision are functioning to look after the welfare

of employees.


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1.2.1.2 Non- Statutory Welfare Scheme:

1. Educational facilities: - In BHEL Township there are fourHr. Sec. Schools functioning under BHEL Education

Society. Two colleges and a nursing college are also

functioning in the township.

2. House accommodations: - All employees (100%) havebeen provided with residential accommodations. BHEL

Bhopal has also allotted land to their employees who have

constructed their own house.

3. Medical facilities :- BHEL Bhopal has a well equipped

Kasturba Hospital along with four peripheral dispensaries

in each of its four townships plus one occupational health

center in the factory premises; equipped with necessary

health facilities & infrastructure. Employees and their

dependents are given free medical treatment. A highly

subsidized contributory health scheme exists for retired

employees. Kasturba Hospital is a 400 bedded hospital

with nearly 88 doctors and 91 nurses and with a staff of


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over 285 employees. Besides the regular employees

numbering 8000+, Other beneficiaries include nearly

42000 dependents and 14000 retired employees. Some of

the most sophisticated surgical procedures in the field of

Cardiac and neurocare, complex orthopedic, operations

like knee and hip surgeries are being done.

4. Uniforms :- BHEL provides to all categories worker

uniforms clothing along with safety shoes.

5. Different Social/ Cultural Associations :- For the social and

cultural activities of the residents of BHEL township,17

cultural associations like Malayalee Association, Tamil

sangam, Bangla Sanskritik Parishad, etc. exist.Infrastructural support by way of accommodation, water,

light is provided by BHEL.

BHEL is having a number of clubs for their employees

viz., for executive (BHEL SENIOR CLUB), for supervisor

(ATA CLUB) and for workers (AGA CLUB). Yoga centerare there where yogic exercise are being given by the

trained teachers for the benefits of the employee and their

family member.


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6. Parks: - 19 parks are being maintained in the township.

7. Sports Activities: - To promote sports activities BHEL

management has provided for one huge sports complex

(including a sports stadium and golf course). Facilities for

almost all sports and games are provided (both indoor and

out-door).A sports Authority has also been established to

look after such facilities, inter-unit tournaments etc. This

sports complex is NIS certified.

8. Community Centers: BHEL has many community halls in

BHEL township which provides following facilities:

Library: Library / reading room where national/ local news

are provided free of cost.

Games: Both indoor and outdoor facilities are available for

the benefits of employees and their family member. By

charging very nominal; charges of Rs.2/- to RS.5/- pre

person per game.

Marriage hall: BHEL Township is providing the facilitiesof solemnizing the marriage of the sons/ daughters of their

employees. This facility is available at very nominal

charges.


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9. Public Grievance Cell: To redress the Grievances of the

inhabitants of BHEL Township, Shopkeepers etc. a Public

Grievance Cell is functioning at Town Administrative

Office and HOD of the township heads this cell. The

objective of this cell is to look into the grievances of the

complainants and resolve amicable solutions.

10.

Tree Plantation: BHEL Bhopal is very conscious of its surroundings and environment. BHEL Town Ship and

factory is well known for its greenery. Every year a large

number of saplings are planted in the month of August.

The plantation drive continues almost throughout the year.

On an average, 15,000 saplings are planted every year.

1.3 Statutory labor welfare facilities

Statutory Facilities are those, which are provided by law. There

are compulsory facilities. Every concern has to make

arrangement of such facilities so that worker can do the work

without problem. These facilities are important for every


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organization for improving health and for providing safety to the

worker. Some of the important health, welfare and safety

provisions are given under factories act 1948. Some important

facilities are:-

Cleanliness Drinking Water Proper lighting Bath Rooms facility

Medical facility Shelter , restroom and lunch rooms Washing facilities Crches Disposal of waste and effluents spittoons


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1.4 Non Statutory labor welfare Facilities

Non-statutory facilities are those facilities, which are not

prescribed by law. These facilities are provided by the

management to the workers for avoiding labour turnover and

absenteeism and for giving maximum satisfaction & job security

to them some of the non-Statutory facilities are as follow:

Conveyance facility Education facility Housing facility Loan and advance facility House rent allowance (H.R.A) Leave travel allowance (L.T.A)

Recreation facilities


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1.5 Objectives of the Study

The main objectives of the study are as follows:-

a) To know about the Social security schemes and policies

followed by the company.

b) To know about the Welfare Schemes of the company.

c) To gather the information about the structure of the schemes

in BHEL.

d) To gather the information about the process of

implementation of the schemes in BHEL.

e) To know about the rules and regulations followed by the

company for various policies and schemes.

f) To know about the effectiveness of the schemes for both theemployees and the organization.


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2.1 Social Security Schemes in BHEL

BHEL Bhopal has undertaken a number of Social security

Schemes for the Security of its employees and their family

members. In compliance with the provisions of the factories Act

1948, The workmens Compensation Act 1923, The employees

Provident Fund Act, The payment of Gratuity Act and others.

The various Social Security Schemes in BHEL are discussed as

below:-

2.1.12 Group Saving Linked Insurance Scheme(GSLIS)

2.1.13 Death Relief Fund (DRFS)2.1.14 Employee Deposit Linked insurance (EDLI)2.1.15 Group Insurance Scheme (GIS)2.1.16 Group Personnel Accident Policy(GPAP)2.1.17 Gratuity 2.1.18 The employees family pension scheme 2.1.19 Provident Fund2.1.20 Earned Leave2.1.21 Retired Employees' Contributory Health Scheme2.1.22 A ct: The workmens Compensation Act, 1923

2.1.1 Group Saving Linked Insurance Scheme


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The BHEL Group Savings Linked Insurance Scheme which

effect from April 1987 provides an insurance cover for all the

regular employees and promotes savings to provide financial

assistance to the employees / beneficiaries at the time of

retirement or insurance cover in the event of death while in

service. This scheme is applicable to all the full time / regular

employees between the age of 18 and 60 years borne on the pay

rolls of the Company and drawing pay in the salary grades of the

Company.


The assurance which shall be effected on the life of each

member is for the sums assured as under:

Category - Salary Grade wise Sum Assured (Rs.)

AI/BI to A VI/B VI grades, S-0,

all temporary employees

recruited against regular

vacancies either on daily rated

wages or on consolidated wages.

10,000/-

AVII/BVII to AXI/BXI, 20,000/-


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SA1/SB1 to SA3/SB3, Jr.

Executives

E1 to E4 and other equivalent

grades

40,000/-

E5 and above. 80,000/-

2.1.1.2 Premium Per Month. (In Rs.)

Sum Assured Monthly

Premium

Risk Portion Savings

Portion

10,000/- 13.50 5.00 8.50

20,000/- 27.00 10.00 17.00

40,000/- 54.00 20.00 34.00

80,000/- 108.00 40.00 68.00

The Risk Portion will be borne by the Company and the Savings

portion will be contributed by the employee.


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2.1.2 Death Relief Fund (DRFS)

The BHEL Employees Death Relief Fund Scheme / DeathRelief Scheme give monetary assistance to the families of the

members who die while in service of the company. Scheme

covers all categories of employees who have voluntarily

enrolled themselves as members of the scheme. The scheme is

administered by a committee formed by respective unit

management.

Category Contribution amount peremployee

All Employees Rs.5/per death

All Employees have to pay Rs.5/- for each death during the

corresponding month. The amount is deducted from the Salary

of the employee every month.

2.1.3 Employee Deposit Linked insurance (EDLI)

BHEL Employees Deposit Linked Insurance Scheme is a

Group Insurance scheme operating with Life Insurance

Corporation of India. This scheme is in lieu of the statutory


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EDLI scheme 1976 which is applicable to all the Provident Fund

subscribers. The scheme is applicable to all the full time regular

employees between the age of 18 and 60 years on the pay rolls of

the company and drawing pay in the salary grades of the

Company.


This policy confers a uniform cover of Rs. 1,32,000/- to all

categories of employees of the company and is applicable to allemployees of the company covered under Group Insurance

Scheme.

Category Assured Amount

All Employees Rs.1.32,000

2.1.4 Group Insurance Scheme (GIS)

The BHEL Employees Group Insurance Scheme one year

renewal term assurance plan presently with Life Insurance

Corporation of India provides graded insurance cover. The

scheme is applicable to all the full time regular employees

between the age of 18 and 60 years on the pay rolls of the

company and drawing pay in the salary grades of the Company.


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The assurance which shall be effected on the life of each

member wef 1/11/2007 is as follows:

Grade Category and Salary Grade Sum Assured (Rs.)

A AI/BI to AVI/BVI grades, S-0, all

temporary employees recruited

against regular vacancies either on

daily rated wages or on

consolidated wages.

2 Lakhs

B AVII/BVII to AXI/BXI &

SAI/SBI to SAIII/SBIII, Jr.

Executives

4 Lakhs

C E1 to E4 and other equivalent

Grades.

7 Lakhs

D E5 and above 10 Lakhs


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2.1.5 Group Personnel Accident Policy (GPAP)

The scheme is applicable to all the full time regular employees

between the age of 18 and 60 years on the pay rolls of the

company and drawing pay in the salary grades of the Company.

This Policy is meant to cover accidentally caused body injury

due to external reasons except natural deaths, death due to

disease and suicide. The term Accident has a wide connotation.

The death/injury need not occur only in connection with an

official duty in order to be eligible for compensation. The cover

will be in force anywhere in the world.

This policy started from the year 2002 and currently it is in tie

up with the ICICI LOMBARD.


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2.1.5.1 ICICI LOMBARD

These tie ups changes every year and the span of the policy is

from July to June. In the Previous year it is tied up with TATA

AIG.

During the financial year (July2101-June2011) company paid a

premium of 72 lakhs Rs. for 46224 employees (all employees of

BHEL.)

2.1.5.1.1 The compensation available is as follows:

1. Full sum insured in case of death due to accident.

2. Prescribed percentage of sum insured in case of loss of

limbs resulting in partial or total disablement.

3. Cover for total temporary disablement will covers inability

to attend office on account of all types of injuries on the

advice of the Doctor @ 1%(One percent) of Sum Insured

(limited to Rs 5000.00) per week for absence in excess of

eight weeks. Prorata payment will be made for part of the

week, if applicable.


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2.1.5.1.2 The coverage for employees posted at sites and other

than at sites is as

follows (Rs.in lakhs)

Sl.No.Category

Other than

site

employees

Site Category

A B C

1

Executives including

Executive Trainees /

Supervisors in Executive

Grades

5.00 10.00 12.00 15.00

2Supervisors & Workers

in Supervisor Grades4.00 8.00 10.00 12.00

3

Supervisor trainees,Employees in Worker

Grades, temporary

employees recruited

against regular vacancies

either on daily rated

wages or on

consolidated wages

3.00 6.00 8.00 10.00


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All foreign sites will be treated as Category C sites.

2.1.5.1.3 Process

STEP 1 - Intimation of the accident of the employees is given to

the agency by the company.

STEP 2 - Filling of claim form personal accident insurance

which contain:-

Incident report

FIR(accident cause outside of campus and death whether inside

or outside of campus)

Leave certificate

Sickness certificate

Treatment papers

Discharge certificate

In case of death:

FIR

Death certificate

Post mortem report


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STEP 3 - This filled forms is sent to the agency for cross

checking .Agency have their own medical officer who crosscheck the disability percentage in case of injury.

STEP 4 - If everything is satisfied then the company pays the

capital insured amount within 3-4 month.

2.1.6 Gratuity

Gratuity means a small sum of money given to a person as a

reward for good service. This rule recognizes the employees

service by the management. It is provided only when an

employee complete minimum of 5 years of service in the

company & in continuation. Gratuity thus mainly depends on the

number of years in services & monthly wages.

2.1.6.1 Gratuity Calculation:

Gratuity = [(Basic +DA+ Service Wt. )* Length of Service * 15 ]

26


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Gratuity is received only when an employee willingly resigns or

retires. Its maximum limit is up to Rs.10,00,000/- (lumpsum

amount).

The ceiling limit of gratuity amount payable in case of death of

an employee are as follows:

A. during the first year

of service

2 months'

emoluments

B. after one year but

before 5 years of

service

6 months'

emoluments

C. after completion of

5 years but before

20

years of service

12 months'

emoluments

D. service of

20 years

Half a month's more

emoluments for

completed half year

of qualifying


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service subject to a

maximum of 33

times the

emoluments

provided the amount

of death gratuity shall

in no

case exceed

Rs.3,50,000/-.

2.1.7 The E mployees Family Pension Scheme

Employees' Pension Scheme-95 came into effect from 16.11.95.The Employees' Pension Scheme-95 has been conceived as a

Benefit defined Social Insurance Scheme formulated following

actuarial principles for ensuring long term financial sustenance.

In BHEL Employees' Pension Scheme-95 is followed. Here the

pension schemes include monetary benefits of Rs.1500-2000 per

month as per the grade of the employee.


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8.33% of pension is given out of 12% and rest of the amount is

transferred to the Provident Fund Accounts of that employee.

2.1.7.1 Calculations:

Let us take an example of employee having salary of Rs.1000/-

per month then,

Employee contribution of 12% equals 120

Employer contribution of 12% equals 120

Now 8.33% of 1000 equals 83

And, 120-83 = 37 So,

Fund For Pension

Rs. 83/- (Employer Contribution)

Fund For PF(Provident Fund)

37 + 120 = Rs. 157/-

where 37 is employer & 120 is employee contribution.

NOTE: Pension doesnt exceed Rs.6500/ -


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For Example:-

If employee salary :- Rs. 20,000/- p.m.

Employee & Employer contribution of 12% is :- Rs.2400/-

8.33% of 20,000 is 1666 but it doesnt exceed 6500 so 541 goes

to the pension fund

i.e. Pension Fund = Rs. 541/-

Fund For PF(Provident Fund)

2400-541 = 1859

1859 + 2400 = Rs. 4259/-

Where 1859 is employer & 2400 is employee contribution.

2.1.7.2 Benefits

Newly introduced Employees' Pension Scheme-95 provides for

following benefit package:

1. Pension for life to the member, on

superannuation/retirement and invalidation.

2. To the members of the family upon death of the member:

a. Pension to Widow/Widower for life or till re-marriage.


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b. To children/orphan, two at a time additionally upto 25

years of age simultaneously with widow/widower pension.

c. Children/orphan with total and permanent disability shall

be entitled to payment of children pension or orphan

pension as the case may be irrespective of age and number

of children in the family.

d. Facility for payment of pension to nominee in the event of

member who is unmarried or without any eligible family

member to receive pension, ande. Facility for payment of pension to dependent

father/mother in the event the member dies leaving behind

no eligible family members and no nomination by such

deceased member exists.

2.1.8 Provident Fund

It is that fund (pension fund) in which a monthly sum is set aside

for an old age pension. Employee Provident fund is that amount

of money which is deposited by every employee in the company

during the services, so that invested amount could be withdrawnafter retirement. Thus it is a very crucial part of each & every

employees salary.


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CPF which is Company Provident fund is the fund where money

of employee is invested every month & thus it goes to the

companies account. Thus company also gives some amount of

money from its own side which is equivalent amount as that of

an employee contribution. Thus PF is a joint investment of both

the company & its employees.

2.1.8.1 Provident Fund Calculations

Provident Fund = [12%(Basic salary + DA)per month] +

[Equivalent amount by the company]

Interest on PF is also given which is in the range of 8 to 8.5%

currently. Provisions like withdrawals can be made use of this

scheme, like:

1. Temporary loan marriage of dependents

2. Permanent withdrawal own marriage, marriage of

children , construction or purchase of house & other

properties .

This withdrawal can be made only once.


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Before 1 year of retirement, 90% of total PF amount can be

withdrawn. Thus in case of any need ,one can be safe & secure

with the money of PF. PF is a compulsion and is provided to all

employees.

2.1.9 Earned Leave

Earned Leave is defined by the BHEL , as it is related to the

number of years of service put in by the employees as under:-

No. of complete years of

service

Entitlement of earned leave per

annum(days)

Upto 5 yr 22

Above 5 upto 10 yr 24



Above 20 yr 30

On retirement, the remaining earned leave (taken in account of

full service years) of the employee is paid by the last basic salary.

If the employee wants to withdraw the money of Earned Leave


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during the period of the service than company pays for the

Earned Leave as :-

Earned leave = (Basic of one day ) * Number of Earned Leave

employees required ( remaining earned leaves from previous

year)

On Retirement the earned leave is paid as:-

Earned leave = (Basic of one day) * (Total number of remaining earned leave in employees service)


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2.1.10 Retired Employees' Contributory Health Scheme

This scheme shall be known as 'BHEL Retired Employees'

Contributory Health Scheme' effective from 1st Nov., 1985. Thescheme is intended to extend medical cover to the retired BHEL

employee and his/her spouse and spouse of an employee who

dies while in service. This scheme is applied to all the categories

of BHEL retired / deceased employees i.e , Regular employees

who retired from service on attaining the age of superannuation

after rendering a minimum of 5 years continuous service in the

Company.

A nominal amount has to pay by the employee and for his/her

spouse per year and he/she is eligible to get all the medical

facilities , treatments , medicines without any charge.

2.1.10.1 Sample Forms (to be filled by employees)

Below are the sample forms to be filled by the employees for

Social Security. Employees have to filled up these forms during

the joining of their services. So as to gather the information

about their personal profile, family, nominations and others.

FORMS are as follows:-


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1. BHEL GROUP SAVING LINKED INSURANCE

SCHEME

2. BHEL EMPLOYEES GROUP INSURANCE SCHEME

AND EMPLOYEE DEPOSIT LINKED INSURANCE

3. GRATUITY NOMINATION

4. PROVIDENT FUND

5. NOMINATION FOR DEATH RELIEF FUND


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2.1.11 Act: The workmens Compensation Act, 1923

The Workmen's Compensation Act, 1923 is one of the

important social security legislations. It aims at providing

financial protection to workmen and their dependants in case of

accidental injury by means of payment of compensation by the

employers.

2.1.11.1 Main Provisions

Under the Act, the State Governments are empowered to

appoint Commissioners for Workmen's Compensation for;

(i) Settlement of disputed claims,

(ii) Disposal of cases of injuries involving death, and

(iii) Revision of periodical payments.

2.1.11.2 Compensation

In case of death the minimum amount of compensation fixed isRs 80,000 and Rs. 90,000 in case of permanent total

disablement. The existing wage ceiling for computation of

maximum amount of compensation is Rs. 4000. The maximum


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amount of compensation payable is Rs. 4.56 lakh in the case of

death and Rs. 5.48 lakh in the case of permanent total

disablement.

2.1.11.3 The process of providing The Workmens

Compensation in BHEL

When an accident takes place in BHEL, it is judged on the basis

of severity i.e. Major or Minor accident or Near Missed Case.Then Cases of disability is checked as:

Total Temporary Disability: When the part of the person

following an accident is temporary disabled and can be

recovered or healed. Such Disabilities are termed as Total

Temporary Disability. Total Permanent Disability : When the person following an

accident is permanently disabled and cannot be recovered

or healed. And cannot be used further in the factory, then

such disabilities are termed as Total Permanent Disability.

Partial Permanent Disability: When the part of the person

following an accident is permanently disabled and cannot

be recovered or healed. Such Disabilities are termed as

Partial Permanent Disability.


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2.1.11.4 The Claim process

Accide nt report

Committee

Amount of Compensation

2.1.11.4.1 Preparation of Accident Report and Compensation

Amount:-

Accident report is prepared by referring the Workmens

Compensation Act. 081 2000 ISO1778 (E-15 0995K)

Case:

1. If Doctor Advice rest for 28 days or above then consider

number of leaves as such.

2. If Doctor Advice rest for less than 28 days then deducts 3 days

payment.


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2.1.11.4.2 Procedure

1. Fill up the primary accident form.

2. Issue of sick leave with medical certificate by doctor.

3. Setting of enquiry officer team.

a. Enquiry officer.

b. Safety.

c. Human resource.

4. Enquiry teams check the accident place and prepare the

report by taking in consideration of the statement of eye

witness.

5. Report is prepared about

About the work worker is performing during injury.

Whole incident about accident.

Reason of occurrence.

Measure to stop or avoid the accident.

6. Approval of report by : HR,

Law,

Finance, and

HODs


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7. HMC(Half Monthly Compensation ) , Lumsum Payment according to injury , Earned leave Payment is done.

8. The details of payment copy goes to the labour court where labour court asks the employee about thesatisfaction level with the payment done to him/her in thepresence of witness.

9. If everything is satisfactory then the case is closed.

10. Otherwise court gives the letter to the BHEL about thedissatisfaction of the employee and further proceedings

were takes place.

3.1 Live Case Handling in BHEL

There were 2 live cases studied in BHEL, related to Social

Security they are :-

1. Accident Case

2. Death Case

3.1.1 Accident case

Consider a case of Mr. XYZ. (Name hidden for security reasons)

Accident Date: 9/1/2011

Re-Joining Date of Factory: 25/2/2011


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10/1/2011 24/2/2011 :- 46 days

Age:- 25 years

Injured during working hours causing fracture in palm with 4%permanent disability.

A procedure followed by BHEL:

Amendments rules 08/2000/s0/778(e-150995k)

3.1.1.1 Rules of half monthly compensation (HMC) Calculation:

1. Annual Salary = 189756

Average Salary = Annual Salary/12 = 15813

25% of Average Salary = 3953.25

2. Taking pay of 15 days-

3953 25 15=263 55 (pay for one day.)

For 46 days-

Half monthly compensation-

263.5546=12123 30 or 12123


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Rs.12,123/- is paid as HMC.

3.1.1.2 Rules for Earned Leave Calculation:

According to personal manual S.No (02/1998)

(S.No/AA/KA/C/H/1/12 FEB 1998)

NOTE: It is applicable only for 90 days leave for more days

approval has to be taken by higher authority.

1.Earned leave for one month-

Basic + DA = 11,700+5031

= 16,731

2. 16,731 30 = 557.70 (pay for one day)

557.70 * 46 = 25,654 (for 46 days)

3. 25654 12123 = 13,531(disability payment for earned

leave)

It means Half Monthly Compensation +Earned leave

= total payment.


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= 25,654

Rs.25,654/- paid for earned leave.

3.1.1.3 Rules for Lumsum Payment:

Detail accident report is given to the doctor for

examine.

Doctor provides the percentage of disability of worker.

Rs.8000/- from 31 may 2010(before it was Rs.4000/-)

Compensation Monthly Wage

4% of injury found in this case.

AGE FACTOR- Factor for working out lumsum

equivalent of compensation amount in case of

permanent disability and death.

In this case age is 25 which equals 216.14.

Payment is done as-

Monthly Wage * Age Factor * Disability percentage 100

Here ,

8000 * 216 91 * 4 100 = 69411 20

69411 20 12,123 (Half Monthly Compensation) = 57,288


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Rs.57,288/- is paid as Lumsum Payment.

3.1.2 Death case

Consider a case of Mr. XYZ. (Name hidden for security reasons)

Date of Birth:- 14/7/1955

Death Date:16 /3/2011

Mode of Death :- Road Accident

Place of Death :- Near Jublee Gate of BHEL

Case date of Duty attended :- 16/3/2011

Family members Information

1. Wife :- 100% nomination in every scheme

2. 4 son 1 daughter (2 son were less than 25 yr.)

AMOUNT PAID

GPA :- 4lakhs

Death Relief :- Rs. 45 , 485/-

GIS :- Rs.40,000/-

EDLI :- Rs. 1,20,000 /-


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GSLIS :- Rs. 25,000 /-(More compensation due to death)

CPF :- Rs.10,57,015/-

Gratuity :- Rs. 9,48,409/-

Leave Earned :- Rs. 3,40,845/-

3.2 Findings of the Study

BHEL follows the Social Security & Labour Welfare Schemes very effectively & efficiently. The Timeframe provided by the

BHEL to give the compensation to their employees at the time

of Accidents & Death cases is very less.

BHEL Personnel procedures and information regarding internal

circulars etc. were communicated to the workers at the right time

and it is be easily available. The relation between the

management and employees was found quiet cooperative and

constructive in nature. BHEL employees were very satisfied with

the current Schemes.

Successfully following the Social Security & Labour Welfare

Schemes in BHEL increases the overall efficiency as :-


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SocialSecurity &

LabourWelfare

JobSatisfaction

Efficiency&

Capability

Co-OperativeRelation

Increase inProduction

Fullfillmentof Family

Needs

Increase inMotivation

Preventionfrom BadHabbits

Reductionof Labur

turnover &Absentees


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3.3 Suggestions

1. LCDs in office flashing the current updates and the BHEL

turn over and assets update and current stock rate.

2. Uniform off Day on Friday.

3. BHEL Office Bus for the employees and extra facility for the

employees doing over time & working late hours.

4. Providing Coupons (such as , McDonalds , Dominos, Pizza

Hut ,Big Bazaar , Reliance Fresh , etc.) in the end of the month

for the employees who are coming to the office/work area at

right time. Amount of coupons are according to the number of

days they are punctual and at the right time. This acts as the

motivation tool for the employees to come at the right time in

the office/work area.

5. Installation of automatic tea and coffee machines and cold

drink machines in BHEL.

6. Some management games should be played among the

worker in the recreation hall, in this way their will be better

coordination among employee and worker.

7. I had observe in the Gas Plants of BHEL, that proper

ventilation was not there and the environment was very dusty


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which is not good from the point view of workers health. Thus,

I recommend that management should consider it properly so

that the atmosphere of these workshops could not effect

negatively on employees health by introducing Electro Static

Preceptor (ECP).

3.4 Conclusion

Every activity has its purpose or an objective behind it. Thus the

efforts made were directed towards the achievement of its

purpose. This project help in gaining experience and acquiring

certain knowledge about the company, Human Resource

Management practice in an organization like BHEL which is one

of the industries in India and one of its own kinds. It has helped

to correlate the subject taught in class and the way it is practiced

at the site.

I would like to conclude that all employees are provided withSocial Security measures and employee benefit schemes which

play an important role in raising their efficiency and in turn

increases the production level.


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This project has helped to study Social Security & Welfare

Schemes and processing of various cases in the HumanResource Department of BHEL, Bhopal. It was found that

most of the employees are well aware of the procedures and

policies and are satisfied with the present system of dealing with

the cases. Hence, handling of Social Security & Welfare

Schemes is quite effective in the company.


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management on organizational performance' Academy of Management Journal39 (4) 779 801

10. ^ Kochan, T. and Barocci, T. (1985) Human Resource Management and

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12. ^ Prahalad, C. and Hamel, G. (1990) 'The core competences of theorganisation' Harvard Business Review

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Documents

Social Security Schemes in BHEL