Socio-Economic Measures and Employer-Employee Relations …shodhganga.inflibnet.ac.in/bitstream/10603/4474/10/10_chapter 5.pdfinnovation, quality and cost leadership. Innovation and

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Chapter-V

Socio-Economic Measures and Employer-Employee Relations

as HRM Practices in GAIL India Ltd.

The success of failure of an organization depends upon a number of factors

and financial resources and further their optimism utilization. Of all these

resources, the human resource occupies the most important place as it is

them who use the other resources. So the organizations always depend

upon their human resource.

Tanuja Agarwala rightly opines that 'Organizations achieve there

objectives through their employees. Employees expect to be rewarded by

the organization for their contribution.'1

Employees or the human resource always look forward for not only

the economic factors, but the social as well. No doubt economic needs are

still the most important priority for an employee to work or not in an

organization, yet their social and physical needs are important to a great

extent. Scholars like Maslow and Herzberg have rightly pointed about the

____________________________________________________________ 1. Tanuja Agarwala, Strategic Human Resource Management, Oxford Unviersity Press, New Delhi, 2007,

p. 50

302

self esteem and self actualization needs in their theories of motivation. The

top management or the employers have to accord maximum importance to

all such needs of their human resources in order to maintain good human

relations in their organization. Good and sound industrial relations are the

real strength of the organizations. The importance of sound human

relations was highlighted as early as in 1924 by Elton Mayo and associates

in their social experiments, popularly known as Hawthrone Studies. Later

on behavioral scientists like Dahl, M.P. Follet, Herbert Simon, Chester

bernard, Rensis Likert etc. focused on importance of human behaviour and

role of human beings, in their respective studies.

Later on, with the introduction of concept of Human Resource

management in 1980's in USA, the traditional approach to industrial

relations changed to new approach based on Human Resource

Management.

The key contrasting dimensions of traditional industrial relations and

HRM approach were presented by Gues (1995).

303

These are presented in following table (5.1)

Table 5.1 Industrial Relations Approach and HRM

Dimension Industrial Relations HRM

Psychological contract

Behavioral references

Relations

Organization design

Compliance

Norms, custom and

practice

Low trust; plusralist

collective

Formal roles,

hierarchy, division of

labour, managerial

control.

Commitment

Value and mission

High trust, unitarist,

individual

Flexible roles, flat

structure, teamwork,

autonomy, self control

Source: D.E. Guest, Human Resource Management: Trade, Unions and industrial

relations in Human Resource Management: A Critical Text, Ed. J. Storey,

Routledge, London, 1995.

304

Guest advocates that this model aims to support the achievement of three

main sources of competitive advantage identified by Porter (1980), namely,

innovation, quality and cost leadership. Innovation and quality strategies

require employee commitment which cost leadership strategies are believed

by management to be achievable only without a union. The logic of market

driven HRM strategy is that where high organizational commitment is

sought, unions are irrelevant. Where advantage cost is the goal. Unions and

industrial relations systems appear to incur higher cost.2

So, it is quite evident that good human relations in an organization

depend on how the human resources are treated and how much attention

the management gives to its man power. The socio-economic needs of the

employees are common in almost all type of organizations, the difference

being in the magnitude of demand only. Even the small organizations need

to care for their man power, to achieve their objectives. Big and successful

organizations give this issue, a top priority, in order to maintain quality

employees. 'Many of America's best managed organizations are not simply

____________________________________________________________ 2. Biswajeet Pattnayak, Human Resource Management, Prentice Hall of India Private Limited, New Delhi,

2004, p. 231

305

being 'nice to people'; they are genuinely helping employees come alive

through their work. Managers have learned that the goals of worker and

workplace need not conflict.'3

Modern organizations work on the basis of business growth model

where good labour relations are achieved by collective decision making

and not collective bargaining. The success of the organization demand a

quality and performing man power which is committed and not forced to

work. So good business sense advocates for responsible employers an d

employees. This is the biggest challenge to the HR managers that how do

the socio-economic environment and good employer-employee relations

are maintained properly and effectively.

The socio-economic measures in the domain of HRM are very

important while the social measures include good working conditions, good

health and safety policies, good living facilities, good family care and

respect at working place, the economic measures includes good pay and

compensation system, rewards for higher achievements and good post

retirement benefits etc. Broadly speaking there can be two categories,

____________________________________________________________ 3. Perry Pascarella, The New Achievers, Free Press, Nee York, 1984, p.x.

306

namely, Financial and Non Financial which matter to employees.

Tanuja Agarwala explains such measures as compensation and

Reward Management practices of HRM. She has rightly pointed out that it

is with compensation in totality that determines the success of

organizations. 'Compensation is the sum total of all forms of payments and

rewards provided to employees for performing tasks to achieve

organizational objectives. Compensation and rewards management is a

complex process that includes decisions regarding benefits and variable

pay and is one of the most significant and dynamic of HR practices.'4

_____________________________________________________________________________________________

4. Tanuja Agarwala, n.1, p. 511

307

She has explained this concept in following table (5.2)

Table 5.2 Compensation and Reward as HRM Practices

Source: Tanuja Agarwala, Strategic Human resource Management, p. 512

All these practices of compensation and rewards management led to good

human relations in the organizations.

Navratna companies of India are also taking good care of this

important factor. These are performing both efficiently and effectively with

the help of their quality human resources. These companies enjoy

additional financial and administrative autonomy, granted to their Board of

Directors. Most of the administrative procedures and practices are

controlled by their respective ministers on behalf of Government of India.

Total compensation

Financial Non Financial

Direct Indirect

Wages, Salaries, Incentives, Bonuses etc.

Benefits

Intrinsic rewards

Satisfaction derived from Job

Praise & Recognition

308

The additional autonomy is granted under Moll system, which is also used

to take care of their employees by the Navratna companies. All the

companies pay well to their employees and provide excellent working

conditions to ensure a healthy and sound employer-employee relations

system.

Socio-economic measure and Employer-Employee relationship in

GAIL (India) Limited.

GAIL (India) Limited, as a number one integrated energy company and a

premier Navratna company is known as one of the best employers in India.5

The Company, since its commissioning in 1984, has taken huge strides to

become a model employer. It was granted the Navratna Status in 1997.

Since then, the company has always maintained its position in the coveted

list.

____________________________________________________________

5. As per the reports of Hewitt International's survery, (2010) GAIL (India) Limited is among the top ten best

employers of India.

309

The employees and human resource at the company are known as 'Team

GAIL'. The level of the job satisfaction of employees is very high because

of their best care by the company. Be it the recruitment or promotions or

pay structure, or industrial safety or overall working conditions, the

company do not compromise with any standard.

To assess the socio-economic measures as HRM practices, the

following parameters have been selected for the present research.

a) Working conditions

b) Health, safety and environment policy of the company

c) Corporate Social Responsibility

d) Pay structure

These are explained separately as under:

a) Working conditions

Working conditions in GAIL (India) Limited were studied from two

separate parameters; namely, working conditions at Corporate office and

working conditions at different units and locations. Working conditions

were studied from different angles and parameters like working hours,

infra-structure, level of knowledge acquired with training and with self

efforts, behavior of seniors and top management, equipment and tools

provided during technical work, leave rules, medical and other health

310

benefits, accommodations and townships, facilities of refreshment during

breaks and canteen facilities, level of bias, re3presentation to SC/ST and

other weaker classes.

Employees were mailed the different set of questionnaires and some

representatives from both the executive and non executive category were

interviewed. The result of those observations made was the final results.

The buildings and plants of the company match with the best in their

class. All units have ISO international certification. The international

standards of plant safety for oil, gas and energy companies are in

compliance. Actually there is no scope left for any sub standard conditions

because of the nature of the plants. Be it the LPG plants or CNG plants or

any other hydrocarbon plant in natural gas sector, it can be extra ordinary

risky or disastrous in nature, if not handled properly.

The company has won many national and international awards and

accolades in the category of industrial safety and plant maintenance.

It has constructed its own townships at all its major plant locations

with facilities of shopping centers, hospitals, schools, well connected roads,

drinking water facilities, company's civil and electrical complaint cells,

clubs for executive and non executive categories, street lights, parks and

green belts. All maintenance tasks are preformed by civil and electrical

311

maintenance departments. Central Industrial Security Force (CISF)

personnel take care of security issues.

There is very good working culture observed at officers and plants of

the Company. No unauthorized person can enter the campus or office

premises. All the employees wear the official uniform at work place, which

is provided by the company. Every employee has to carry his/her identity

card issued by the competent authority. The employees have been trained

to follow the vision and mission of the company. Most of the official work

is done electronically and every part and employee is equipped with

computers and modern IT tools and equipments. All locations are linked

through company's own communication network and PBX telephones.

Workers have been issued working kits and tools which are internationally

certified. All the officers, plants and control rooms are fully air conditioned

with uninterrupted power supply. There are official canteens which provide

refreshment at very subsidized rates. Punctuality and commitment level is

very high because the employees entry time, and exit at the plant or office

is checked every day at security check up points. There is ultra modern

electronic vigilance and surveillance at the offices and plants. Discipline at

work is ensured.

312

There are separate departments according to the needs of the plant or

office. The HR departments maintain the BR records and convey the

different HR policies to all concerned departments with electronic modes.

All departments like instrumentation, electronics, mechanical, civil, plant

safety, electrical, marketing, O and M etc. are linked to each other

electronically.

Any communication from or to corporate office is sent

electronically, inter plant or inter unit communication is also on electronic

mode.

All the employees receive the mandatory and compulsory training

from GTI's whenever required, which is explained in previous chapter also.

Further if there is any need of additional training, employees are trained at

plant level also.

There are well equipped sports complexes with modern gymnasiums

in the townships. The social clubs vary in number at different plants but

some compulsory clubs like Red Cross Club, Ladies club, Officer's wives

club, officers club, Employee's club etc. are found at almost all townships.

Various regional festivals and days are celebrated. Republic Day and

Independence Day is also celebrated.

313

The employees have the facility to celebrate their personal family

functions at social clubs.

There are facilities of local transport by the Company also. Some

units of the company are situated in far away areas or tribal areas. The

Company has regular routs of its own transport to the nearby cities or local

markets for the employees and their families.

The medical centers and hospitals of the company provide

ambulance, mini operation theaters and general medicine department

facilities. There are fully fledged ports of Senior Medical Officers or

Medical Officers with other support staff.

Their are regular branches of nationalized banks or their extension

counters with facilities of ATM centers. Each township or plant has a

regular post office also.

The shopping centers and markets are leased to local people who

cater to the general daily needs of the employees and their families. The

company takes care of the smooth and good working conditions for its

employees. A sample from executive and non executive categories was

selected on random basis to check the level of satisfaction of employees

regarding working conditions and their perception of company as a model

314

employer. The sample selected was mailed the following questions and

asked to respond according to given options. The details are as under:

(i) Your working place is convenient and enjoyable.

Category Yes % of Total No % of Total Total

Executive 94 94 6 6 100

Non-Executive 275 91.66 25 8.33 300

Analysis:

94 percent executives agree that their working place is convenient and enjoyable.

6 percent executives do not agree that their working place is convenient and enjoyable.

91.66 percent non- executives agree that their working place is convenient and

enjoyable.

8.33 percent non- executives do not agree that their working place is convenient and

enjoyable.

(ii). Your working routine and hours of work are not a constraint in your

effectiveness


Executive 89 89 11 11 100

Non-Executive 258 86 42 14 300

315

Analysis:

89 percent of the executives agree that their working routine and hours of work are not a

constraint in their effectiveness.

11 percent of the executives do not agree that their working routine and hours of work

are not a constraint in their effectiveness.

86 percent of the non-executives agree that their working routine and hours of work are

not a constraint in their effectiveness.

14 percent of the non- executives do not agree that their working routine and hours of

work are not a constraint in their effectiveness.

(iii). The infrastructure provided by the Company matches the best in

its class.


Executive 96 96 4 4 100

Non-Executive 281 90.33 19 9.66 300

Analysis:

96 percent of the executives agree that the infrastructure provided by the company

matches the best in its class.

4 percent of the executives do not agree that the infrastructure provided by the company

matches the best in its class.

90.33 percent of the non- executives agree that the infrastructure provided by the

company matches the best in its class.

9.66 percent of the non-executives do not agree that the infrastructure provided by the

company matches the best in its class.

316

(iv) The townships of the Company have the necessary facilities for

comfortable stay.


Executive 90 90 10 10 100

Non-Executive 289 96.33 11 3.66 300

Analysis:

90 percent of the executives agree that the townships of the company have the necessary

facilities for comfortable stay.

10 percent of the executives do not agree that the townships of the company have the

necessary facilities for comfortable stay.

96.33 percent of the non- executives agree that the townships of the company have the

necessary facilities for comfortable stay.

3.66 percent of the non-executives do not agree that the townships of the company have

the necessary facilities for comfortable stay.

(v). The residential accommodation provided to you is good enough for

you and your family


Executive 93 93 7 7 100

Non-Executive 292 97.33 8 2.66 300

Analysis:

93 percent of the executives agree that the residential accommodation provided to them

is good enough for them and their family.

317

7 percent of the executives do not agree that the residential accommodation provided to

them is good enough for them and their family.

97.33 percent of the non- executives agree that the residential accommodation provided

to them is good enough for them and their family.

2.66 percent of the executives do not agree that the residential accommodation provided

to them is good enough for them and their family.

(vi) The extra facilities like medical centers, schools and shopping places

in your township meet your requirements.


Executive 91 91 9 9 100

Non-Executive 286 95.33 14 4,66 300

Analysis:

91 percent of the executives agree that the extra facilities like medical centers, schools

and shopping places in the township meet their requirements.

9 percent of the executives do not agree that the extra facilities like medical centers,

schools and shopping places in the township meet their requirements.

95.33 percent of the non-executives agree that the extra facilities like medical centers,

schools and shopping places in the township meet their requirements.

4.66 percent of the non-executives do not agree that the extra facilities like medical

centers, schools and shopping places in the township meet their requirements.

318

(vii). Your townships are safe places to live.


Executive 98 98 2 2 100


Analysis:

98 percent of the executives agree that their townships are safe places to live.

2 percent of the executives do not agree that their townships are safe places to live.

95 percent of the non- executives agree that their townships are safe places to live.

5 percent of the non-executives do not agree that their townships are safe places to live.

(viii). Your respect and dignity at your working place is not challenged.


Executive 91 91 9 9 100

Non-Executive 268 89.33 32 10.66 300

Analysis:

91 percent of the executives agree that their respect and dignity at the working place is

not challenged

9 percent of the executives do not agree that their respect and dignity at the working

place is not challenged.

89.33 percent of the non-executives agree that their respect and dignity at the working

place is not challenged

10.66 percent of the non-executives do not agree that their respect and dignity at the

working place is not challenged.

319

(ix). Your voice and suggestions are appreciated at your place of work.


Executive 98 98 2 2 100

Non-Executive 292 97.33 8 2.66 300

Analysis:

98 percent of the executives agree that their voice and suggestions are appreciated at

their place of work.

2 percent of the executives do not agree that their voice and suggestions are appreciated

at their place of work.

97.33 percent of the non-executives agree that their voice and suggestions are

appreciated at their place of work.

2.66 percent of the non-executives do not agree that their voice and suggestions are

appreciated at their place of work.

(x). Your job design motivates you at your place of work.


Executive 95 95 5 5 100


Analysis:

95 percent of the executives agree that their job design motivates them at their place of

work.

320

5 percent of the executives do not agree that their job design motivates them at their

place of work.

91 percent of the non- executives agree that their job design motivates them at their

place of work.

9 percent of the non- executives do not agree that their job design motivates them at

their place of work.

(xi). Canteen facilities in your office are good.


Executive 86 86 14 14 100


Analysis:

86 percent of the executives agree that canteen facilities in their office are good.

14 percent of the executives do not agree that canteen facilities in their office are good.

88 percent of the non-executives agree that canteen facilities in their office are good.

12 percent of the non-executives do not agree that canteen facilities in their office are

good.

321

(xii). You get fair chances to show your experience and caliber at your

working place.


Executive 97 97 3 3 100

Non-Executive 289 96.33 11 3.66 300

Analysis:

97 percent of the executives agree that they get fair chances to show their experience

and caliber at their working place.

3 percent of the executives do not agree that they get fair chances to show their

experience and caliber at their working place.

96.33 percent of the non-executives agree that they get fair chances to show their


3.66 percent of the non-executives do not agree that they get fair chances to show their


(xiii). Your motivation level generally remains high at your place of work

with the facilities provided.


Executive 98 98 2 2 100

Non-Executive 287 95.66 13 4.33 300

322

Analysis:

98 percent of the executives agree that their motivation level generally remains high at

their place of work with the facilities provided.

2 percent of the executives do not agree that their motivation level generally remains

high at their place of work with the facilities provided.

95.66 percent of the non-executives agree that their motivation level generally remains

high at their place of work with the facilities provided.

4.33 percent of the non-executives do not agree that their motivation level generally

remains high at their place of work with the facilities provided.

(xiv). Inter personal relationships at working place are healthy in nature.


Executive 92 92 8 8 100


Analysis:

92 percent of the executives agree that their inter personal relationships at working

place are healthy in nature.

8 percent of the executives do not agree that their inter personal relationships at working


88 percent of the non-executives agree that their inter personal relationships at working


12 percent of the non-executives do not agree that their inter personal relationships at

working place are healthy in nature.

323

(xv). You are supported by your colleagues and seniors when you need

some help.


Executive 95 95 5 5 100


Analysis:

95 percent of the executives agree that they are supported by their colleagues and

seniors when they need some help.

5 percent of the executives do not agree that they are supported by their colleagues and


91 percent of the non-executives agree that they are supported by their colleagues and


9 percent of the non-executives do not agree that they are supported by their colleagues

and seniors when they need some help.

(xvi). You want a change in your job design and find the work

monotonous.


Executive 11 11 89 89 100


324

Analysis:

11 percent of the executives agree that they want a change in their job design and find

the work monotonous

89 percent of the executives do not agree that they want a change in their job design and

find the work monotonous

16 percent of the non-executives agree that they want a change in their job design and

find the work monotonous

84 percent of the non-executives do not agree that they want a change in their job

design and find the work monotonous

(xvii). HR Department plans some innovative policies which benefit the

Company and you as individual.


Executive 94 94 6 6 100


Analysis:

94 percent of the executives agree that HR Department plans some innovative policies

which benefit the company and them as individual.

6 percent of the executives do not agree that HR Department plans some innovative

policies which benefit the company and them as individual.

97 percent of the non-executives agree that HR Department plans some innovative


3 percent of the non-executives do not agree that HR Department plans some innovative


325

(xviii). Vigilance at your work place irritate you.


Executive 14 14 86 86 100

Non-Executive 108 36 192 64 300

Analysis:

14 percent of the executives agree that vigilance at their work place irritate them.

86 percent of the executives do not agree that vigilance at their work place irritate them.

36 percent of the non-executives agree that vigilance at their work place irritate them.

64 percent of the non-executives do not agree that vigilance at their work place irritate

them.

(xix). You get quick redress to your grievances if any, by the

Management


Executive 97 97 3 3 100

Non-Executive 280 93.33 20 6.66 300

Analysis:

97 percent of the executives agree that they get quick redress to their grievances if any,

by the management.

3 percent of the executives do not agree that they get quick redress to their grievances if

any, by the management.

326

93.33 percent of the non-executives agree that they get quick redress to their grievances

if any, by the management.

6.66 percent of the non-executives do not agree that they get quick redress to their

grievances if any, by the management.

(xx). Your company has given fair amount of representation to SC/ST

Categories


Executive 95 95 5 5 100


Analysis:

95 percent of the executives agree that their company has given fair amount of

representation to SC/ST categories.

5 percent of the executives do not agree that their company has given fair amount of


97 percent of the non-executives agree that their company has given fair amount of


3 percent of the non-executives do not agree that their company has given fair amount

of representation to SC/ST categories.

327

(xxi). Training imparted by the Company helps you to raise the quality of

work.


Executive 94 94 6 6 100

Non-Executive 289 96.33 11 3.66 300

Analysis:

94 percent of the executives agree that training imparted by the company helps them to

raise the quality of work.

6 percent of the executives do not agree that training imparted by the company helps

them to raise the quality of work.

96.33 percent of the non-executives agree that training imparted by the company helps

them to raise the quality of work.

3.66 percent of the non-executives do not agree that training imparted by the company

helps them to raise the quality of work.

(xxii). The social environment and working conditions of your company

Satisfy you.


Executive 92 92 8 8 100


328

Analysis:

92 percent of the executives agree that the social environment and working conditions

of their company satisfy them.

8 percent of the executives do not agree that the social environment and working

conditions of their company satisfy them.

95 percent of the non-executives agree that the social environment and working


5 percent of the non-executives do not agree that the social environment and working


b) Health, Safety and Environment (HSE) Policy of the Company

Health, safety and Environment policy which is known as HSE

policy as short in the Company, is one of its most important policy, as it

has helped the Company to win national and international accolades for a

number of times. It has a direct impact on all the human resources and is

executed by the human resources. Futrther it is supervised by the human

resources of the company. So it has been selected as one of the important

HRM practice, having a strong bearing on all human resources as a socio-

economic measure.

329

The HSE policy of the company is implemented in all plants, units,

zonal offices and the corporate office. Utmost care is taken by the

management, plant heads, zonal beads and other high officials concerned

for the compliance of the policy.

Objectives of HSE Policy of GAIL (India) Limited

The objectives of HSE policy have been clearly enunciated by company as

under:

(i) To ensure safety of public, employees, plant and equipment.

(ii) To ensure compliance with all statutory rules and regulations

(iii) To impart training to its employees

(iv) To carry out safety audits of its facilities

(v) To conduct regular medical check up of its employees

(vi) To promote eco-friendly activities

330

Corporate Health, Safety and Environment (HSE) Policy

The company is a very responsible Corporate Citizen and has framed a

Corporate HSE policy. The Company's Annual Report of 2009-106 has

framed it as "Your Company is committee to promote globally compliance

levels of Health, Safety, Environment and Loss Control in the areas of its

business of Exploration and Production of Hydrocarbons, Natural Gas and

LPG transmission, Production of LPG, Petrochemicals etc., with clear

emphasis on improving the Environment for Sustainable Development. The

safety and occupational health of its employees and external stakeholders

are of paramount importance and all these attributes are embedded within

the core organizational values of the organization."

HSE Management System of GAIL (India) Limited

The company has embraced the principles and codes of belt HSE

practices and has developed a HSE Management System. This System

forms the basis to achieve all the HSE objectives of the Company.

These are eighteen different elements in the HSE Management

System of the Company which are mentioned as under:

____________________________________________________________ 6. Annual Report 2009-10, GAIL (India) Limited Publication, New Delhi, 2010, p. 29

331

i Leadership and Commitment

ii Employees Participation

iii Facility Design

iv Construction and Pre-startu Safety Review

v Process Safety Information

vi Rich Analysis and Management

vii Third Party Services

viii Personal Safety

ix Control of Defeat and Reliability of Critical System and Devices

x Work Permit System,

xi Operation and Maintenance

xii Inspection and Maintenance

xiii Management of Change

xiv Training

xv Incident Investigation and Analysis

xvi Occupational Health

xvii Environment Management

xviii Compliance Audit

332

The company makes it sure to demonstrate excellent HSE

performance. All the HSE indices across all its work centers are monitored

with aim of continual improvement.

Safety Performance

The Company has a well designed Safety Performance System,

which is recognized globally by all safety norms and standard practices.

The Company continuously monitors the safety standards in three

different parameters which are explained7 as under

a. Frequency Rate _____________ It is expressed as : Number of Accidents* 106 ______________________ Total Man-hours worked b. Severity Rate ____________ It is expressed as: Mandays lost*106

__________________________

Total Man-hours worked c. Incidence Rate _____________ It is expressed as : Number of Accidents *1000 _______________________ Total Manpower (inclusive of casual workers) ________________________________________________________ ____ 7. Winning Momentum-Annual Report 2005-06, A GAIL (India) Limited Publication, New Delhi, 2006, p.24

333

This data is calculated for financial year and further expressed in

percentage form comparable with said MoU target in percentage. This

comparison also helps the company to raise its total score in MoU ratings

every year to maintain its Navratna Status. The minimum score a company

requires in overall terms is 60 to retain the Navratna Status and the

Company has never missed that since 1997.

The Safety Performance for last three years8 is expressed in

following table.

Table 5.3, Safety Performance in GAIL (India) Limited

Year (s) HSE Index

MoU Target (%) Achieved (%)

2008-09 97.0 98.95

2009-10 97.5 99.25

2010-11 97.5 98.92

Source : Annual Report 2010-11, GAIL (India) Limited, New Delhi,

20112, p.22

______________________________________________________________________________________________

8. Annual Report 2010-11, A GAIL (India) Publication, New Delhi, 2011, p. 22

334

The above table is a clear indicator of Company's high standards in safety.

Safety Training

The company ensures that its employees get regular training in

maintaining HSE standards. Apart from its own human resources, their

spouses, children, contract workers, tanker drivers, nearby villagers and

other concerned people are also imparted safety aiming. Newly recruited

trainers are given one week specific HSE training at their site of work.

The Company has maintained a magnificent record of actually

imparting this training to about 95 percent of its employees in last ten

years.

Safety Audits

The Company's safety practices and systems are audited for

consistent excellence in HSE standards. This audit is conducted at both

internal and external level. The inter-unit safety audit terms conduct the

audit at internal level. The external audit is carried by globally recognized

international level audit agencies like British Safety, U.K, Hewt

International etc.

335

External Safety Audits (ESA)

During the year 2010-119 safety audits were carried by external

agencies for 20 O&NM units. The Corporate office building was audited

for safety at New Delhi. Similarly the GTI, training institute building at

Noida was audited. Major Work Centers have been certified for Integrated

Management Systems (IMS). IMS outlines the standards needed to align

with or confirm to internationally accredited certifications such as ISO

9001 (quality assurance), ISO 1400 (environmental) and OHSAS 1800

(health and safety)

Inter Unit Safety Audits (INUSA)/Internal Safety Audits

During the year 2010-11, inter unit safety audits have been carried

out for six units of the Company.10

Occupational Health

The Company has a very sound practice of maintaining the health of

its employees by regular periodic medical checkups.

During the year 2010-1111, all employees of the Company at its work

centers were medially examined, Besides Contract workers, CISF

______________________________________________________________________________________________

9. ibid p.23

10. ibid

11 ibid

336

personnel, villagers from nearby areas were also covered under the

program.

The overall initiatives, practices and standards in HSE areas are

landed both at National and Global level and the Company is consistently

bagging a number of awards and accolades every year since its

commissioning in 1984.

An effort was made in the present research to know the vices of

employees in both executive and non executive category regarding HSE

policy of the Company. The following sets of questionnaire were mailed to

the sample of employees, chosen on random basis from both corporate

office and unit offices.

(i). Your Company's HSE policy helps the employees to have a clear

knowledge of HSE objectives and significance


Executive 94 94 6 6 100


Analysis;

Agree content- Executives=94 percent Non-Executives 93 percent

Disagree content- Executives=6 percent Non-Executives 7 percent

337

(ii). The HSE policy of the Company actually ensures the safety of

employees, plant and equipment


Executive 98 98 2 2 100


Analysis:



(iii). The HSE policy of the Company is helpful in maintaining safety and

environment of surrounding areas and people.


Executive 93 93 7 7 100


Analysis:



338

(iv). Your Company actually ensures compliance with rules and

regulations of HSE standards prescribed


Executive 94 94 6 6 100

Non-Executive 280 93.33 20 6.66 300

Analysis:

Agree content- Executives=94 percent Non-Executives 93.33 percent

Disagree content- Executives=6 percent Non-Executives 6.66 percent

(v). The level of training imparted to employees in HSE standards

maintenance is good.


Executive 91 91 9 9 100


Analysis:



339

(vi). External Safety Audits help the Company in real terms to maintain

its HSE standards.


Executive 92 92 8 8 100

Non-Executive 296 98.66 14 2.33 300

Analysis:



(vii). The plants and your working place is safe enough to work with the

help of maintenance of safety standards


Executive 92 92 8 8 100


Analysis:



340

(viii). The hygiene and cleanliness maintained at your plants, work areas

and township is of very high standards


Executive 92 92 8 8 100


Analysis:



(ix). Medical facilities and regular check ups are meeting your

expectations


Executive 77 77 23 23 100

Non-Executive 221 73.66 79 26.33 300

Analysis:



341

(x). Your overall perception about your Company's HSE policy and

standards is very good.


Executive 92 92 8 8 100


Analysis:



Corporate Social Responsibility in GAIL (India) Limited

Corporate Social Responsibility as a concept and function area of

management has become very important in Public Sector Undertakings of

India, especially after the advent of LPG process i.e. the liberalization,

privatization and globalization. It was very much prevalent in the private

sector with leading examples of TATAl, Birla, Modi, Thapar group of

companies where a lot of interest was shown by the owners and boards of

these companies to help the down trodden and the under privilege sections

of the society. The departmental form of public sector too had the 'service'

motive as the primary one but the long history of nearly half a century has

342

shown that departmental undertakings have not been able to fully perform

the service duty due to their continuous losses. Corporate Social

Responsibility in its simplest form is taking care of social issues by the big

organizations or groups. It is one of the very important management

practice in the socio-economic areas and goes with the philanthropic values

of any company. It adds a content of value in the employees of the

company to be socially responsible and caring. They take a pride in doing

tasks of social cause.

The Government of India in its guidelines to Central Public Sector

Enterprises on Corporate Social Responsibility has defines it as, " a

concept whereby organizations serve the interests of society by taking

responsibility for the impact of their activities on customers, employees,

shareholders, communities and the environment in all aspects of their

operations."12

___________________________________________________________ 12. Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises, 15(s)/2007-DPE

(GM) dated April 9, 2010, Department of Public Enterprises, Government of India, New Delhi.

343

With the new economic policy in the 1990s, the Government of India

showed some interest to make the public sector of India a competitive one

and in the process formed a core group of top profit making public sector

companies called 'Navratna Companies'.Enhanced financial powers and

autonomy was provided to these companies in their various areas of

operations.

GAIL India Limited is also one flagship Navratna Companies of

India running in big profits and competing with the best in the world. It

gives a special attention to the Corporate Social Responsibility (CSR),

issue and takes it as a compulsory socio-economic measure. The company

defines CSR as "continuing commitment for operating the core business in

a socially responsibility way, complemented by investment in communities

to produce an overall positive impact on society."13 In order to translate this

value into action, the company used to spend one percent of the company's

net profit after tax (PAT) of the previous financial year on CSR

programmes.

_________________________________________________________

13. Hriday, A GAIL (India) Publication, New Delhi, 2005, p.6

344

Since 2010, it has decided to make it two percent of Profit After Tax.

These programmes come under the Special Component Plan (SCP) and

Tribal Sub Plan (TCP) of the Government of India. These programmes are

spread across three levels -nationa, zonal and work cetre. Whereas the

national and zonal level programmes are executed by the corporate or zonal

offices, the work centre level programmes are carried out at the work

centre itself. The latter is allocated 75 percent of the overall CSR budget.

The work centres and zonal offices identity social welfare

programmes, in consultation with local groups such as the Gram

Panchayat, revenue offices, collectors, state or district authorities, school

teachers and principals. Programmes are based on the feedback of the

people and are restructured and redesigned as per the feedback and spcial

requirements. As a responsible public company it also takes care of

strengthening the relationship between the Government and the citizens by

providing solutions for rural development problems working for reducing

socio-economic disparities.

The special areas of concern in CSR for the company are

i.Environment Protection and Horticulture

ii. Infrastructure

345

iii.Drinking water and sanitation

iv.Health care and medical facilities

v.Community Development

vi.Educational aids and Literary Enhancement

The company works in the above mentioned areas with a committed

team of its employees known as 'Team GAIL' along with a number

of NGO's and social welfare groups. Some of the past examples14 in

these areas are explained as under:

i. Environment Protection and Horticulture: The Company has a very

strong environment policy and works with dedication to preserve the nature

and environment. It develops its townships where a complete area is given

for creating maximum green belts.

It also takes care of the reedy people in the surrounding areas and helps

them in field of environment protection and horticulture.

It developed a water pond at Ladaiya Kheda village in Vijaipur

(MP). About 400 people of the village have enhanced their way of living

by the presence of this pond.

__________________________________________________________

14 Ibid p. 12

346

It developed a water shed at Belka village in Vijaipur where about

600 people got benefited.

It undertook a brick pitching work for a nallah that runs fifty meters

for Vsaundhara village at Pata to the Dandi crossing in UP.

In order to protect environment and greenery about sixty plant

saplings were planted in Vadodra city and each was provided with a tree

guard.

It has also designed a public garden at the Bandra-Kural complex in

Bandra (E) Mumbai. The company celebrates June 5 as World

Environment Day and plants, trees in various areas of the country. It also

helps the needy people in the most forgotten and discouraged areas by

planting trees and developing water ponds.

The company believes that it is a partnership between man and

nature; both draw from each other, both needs to sustain the other.

ii. Infrastructure: The Company is helping thousands of people by

developing various kinds of infrastructure like roads, street lights,

dwellings and school buildings. It also takes care of rehabilitation

processes.

347

Some recent examples in this regard are:15

It has developed a higher secondary school at Makdon, Khera and has

helped over 200 hundred students. It has provided the building over to the

school authority after making if fully functional and developed.

It took the renovation of Koti Palace at Khera which houses many

government offices including Ujjain court.

It rehabilitated over 250 families at Pata after setting its petro

chemical complex. The families were relocated in a colony with basic

amenities of modern day life. It has also developed play grounds and

schools for the colony. A vocational training centre was also established.

It has developed a very good number of roads linking the various

villages to the main cities and highway. It has also constructed rooms for a

number of schools in MP, Gujarat, Maharashtra and UP. The company has

constructed check dams at Vijaipur for water harvesting and storage. It has

also help thousands of villages by developing small kennels for irrigation.

_________________________________________________________ 15. ibid, p.

348

It has developed a bridge at Laxmanpura Village in Vijaipur and

helped the local people.

It has also built a fifty bed hospital complex with a cost of Rs. 1.3

crore at Guna MP. This has become a lifeline for the local residents and the

people of nearby areas.

It developed a community hall at Gaylor Kalan at Jhabua where the

people of the area get together for various celebrations. It has also adopted

an orphanage with 73 children at the same area.

Further it has developed a number of schools, health centers, actively

centers at various parts of Rajasthan, UP, MP, Gujarat, Maharashtra and

also Kerala.

iii. Drinking water and sanitation: The company gives maximum care

for providing drinking water and sanitation facilities to the needy people. It

has dug tube wells and provided water tankers and hand pumps to

thousands of needy people leaving in dry areas.

Some recent examples of the past in this regard are :16

____________________________________________________________ 16. ibid.

349

At Ajmer district in a desert area thousands of people were living

without a drop of water who were provided over sixty water tanks of five

thousand liter capacity in about sixty villages. The tanks were made of

polymers of very quality.

It donated 5 lakh rupees to the Chief Minister's relief fund at Jaipur

to provide drinking water to the needy people.

It helped the people of Gaylor Kalan village at Jhabua by providing

them three wells. Similarly it installed hand pumps at Halol, Vadodra

(Gujarat), Agra, Dholpur, Madore, Ferozabad (UP) and also to the people

of Nagaram village at Rajahmundry.

The company had installed a number of tube wells at Guna, Khera

and Usar. It never any opportunity to serve the people who cry for water.

iv. Health care and medical facilities: The Company has helped a

number of hospitals and NGO's working in the health care area like Help

Age. Some recent examples in this regards are17 :

It has developed a burn treatment unit at Bharuch ) Gujarat at the

local civil hospital and also provided laboratory equipment worth Rs. 11.46

lakh.

____________________________________________________________ 17. ibid

350

It helps a number of ESI hospitals and medical centre at various parts of the

country. It plans a number of family planning camps, rehabilitation of the

mentally challenged people, eye surgeries, mobile Medicare units etc. It

helps a number of Red Cross societies and social work originations and has

donated thousands of wheel chairs and crutches to the needy people. It has

also funded a project for respiratory disease treatment centre at GB Panth

Hospital at Agartala.

v. Community development: The company has a policy of adopting

villages and other areas where it focuses on community development

programs. It takes care of academic, economic, social and health related

issues of community.

Some recent examples in this regard are18 :

It has organized a number of camps with diversifi9ed objectives of

providing welfare for the communities. It has funded the renovation

projects at a number of places like Rajamundry, Mumbai etc. It also helps

the museums and libraries for preserving and purchasing the reading

material.

____________________________________________________________ 18. ibid p.

351

It has distributed from computers to gas burners a number of grocery

items and has opened kitchen cum stores at various parts of the country. In

a novel project it has constructed a traffic island at busy intersections at

various cities. It has distributed televisions at various community centers.

Any proposal which seems rational and justified to the company it taken

care of.

vi. Educational aids and literacy enhancement: The company provides

different kinds of educational aids where people get vocational training and

help for other job oriented courses.

Some recent examples in this regard are19:

It has helped a number of women in the country to learn the concept

of duck and chick farming which brings a regular income to them in future.

It also helps a number of self help groups in the country which take care of

literacy enhancement.

It distributes computers and other technical support to the

government schools throughout the country besides providing water

coolers, health care centers and help to the physically challenged students.

________________________________________________________ 19. ibid, p.

352

It donated a number of 29" TV sets to help the hearing and speech impaired

students at Jaipur. It also constructed a computer training Centre for East

Godavari Cooperative Society at Rajamundri. It is also helping the schools

in sanitation needs. A number of vocational training centers and camps

have been organized by the company in various parts of the country.

In a Bal Sakhi programme at Vadodra it helped more than 200

children living in slums by providing them literacy programmes. It has also

distributed thousands of schools note books and playing equipment to the

students. It also helps the poor students through scholarship, awards and

gift cheques. It has also provided sewing machines to a number of

panchayats and anganwaris.

The company in order to help the child labour has built a number of

rehabilitation centers where food, shelter and basic education is provided to

help them to be self dependent.

The concept of DSR is now, a kind of necessary practice and has

acquired a lot of importance in Corporal world. Swarup Mohanty rightly

opines, "In the present scenario of Corporate Governance, Coropral Social

Responsibility has assumed wide significane.

353

This issue is top boardroom agenda and giving more visibility with

strong advoacy from NGD's and collective movements.20

The company has a policy to check the authenticity of its CSR

programmes and getting regular feed backs through a number of helping

groups and social welfare organizations. It also entrusts this job to some

social work departments of various Universities also. It has selected Jamia

Millia Islamia (JMI) University and HITASISHI, and NGO for making a

study of its variou CSR activities.

The HITASISHI study report revealed that the beneficiaries from

GAIL are very happy and want the company to adopt more villages. Their

perception is that the company does the work with honesty, speed and

better quality. There are no delays on the part of GAIL for undertaking and

completing various CSR activities.

The study report of JMI has also appreciated the various tasks being

undertaken by the company. It has specially praised the integrity and

commitment factor of the company.

______________________________________________________________________________________________

20. Swaroup K. Mohanty, Corporate Social Responsibility: Present Practices and Future Possibilities, Indian

Journal of Industrial Relations, New Delhi, 40 (4), April 2005, p. 547

354

The company still feels that there is a larger scope for such activities in

India and plans to widen its horizons for making the company as the best

in CSR activities.

The sample of the employees was given a questionnaire to judge the

impact of CSR Policy as a value in socio-economic areas.

The observation of data collected through questionnaire is as under:

(i). CSR Policy of your Company does some real good to the down

trodden classes.


Executive 94 94 6 6 100


Analysis:

94 percent of the executives agree that CSR policy of their company does some good to

the down trodden classes.

6 percent of the executives do not agree that CSR policy of their company does some

good to the down trodden classes.

93 percent of the non executives agree that CSR policy of their company does some

good to the down trodden classes.

7 percent of the non executives do not agree that CSR policy of their company does

some good to the down trodden classes.

355

(ii). The amount fixed as two percent of Profit After Tax (PAT) for CSR

programs is enough.


Executive 91 91 9 9 100

Non-Executive 289 96.33 11 3.66 300

Analysis:

91 percent of the executives agree that amount fixed as 2% of PAT for CSR programs is

enough.

9 percent of the executives do not agree that amount fixed as 2% of PAT for CSR

programs is enough.

96.33 percent of the non executives agree that amount fixed as 2% of PAT for CSR

programs is enough.

3.66 percent of the non executives do not agree that amount fixed as 2% of PAT for

CSR programs is enough.

(iii). Your opinion matters at the time of selection of areas for providing

help under CSR programs.


Executive 69 69 31 31 100

Non-Executive 80 26.66 220 73.33 300

356

Analysis:

69 percent of the executives agree that their opinion matter at the time of selection of

areas for providing help under CSR programs.

31 percent of the executives do not agree that their opinion matter at the time of

selection of areas for providing help under CSR programs.

26.66 percent of the non executives agree that their opinion matter at the time of


73.33 percent of the non executives do not agree that their opinion matter at the time of


(iv). You get inspiration to become a socially responsible citizen with

CSR programs of your company.


Executive 95 95 5 5 100


Analysis:

95 percent of the executives get inspiration to become a socially responsible citizen

with CSR programs of the company.

5 percent of the executives do not get inspiration to become a socially responsible

citizen with CSR programs of the company.

95 percent of the non-executives get inspiration to become a socially responsible citizen

with CSR programs of the company.

5 percent of the non-executives do not get inspiration to become a socially responsible

citizen with CSR programs of the company.

357

(v). The CSR program of your company is a genuine socio-economic

measure to make it a responsible corporate citizen.


Executive 93 93 7 7 100


Analysis:

93 percent of the executives agree that the CSR program of the company is a genuine

socio-economic measure to make it a responsible corporate citizen.

7 percent of the executives do not agree that the CSR program of the company is a

genuine socio-economic measure to make it a responsible corporate citizen.

94 percent of the non-executives agree that the CSR program of the company is a


6 percent of the non- executives do not agree that the CSR program of the company is a


d) Pay Structure and other financial benefits

The employees of any organization are always concerned with its

pay structure. Pay structure is sometimes given the names like wage and

compensation system or compensation and rewards system.

Pay structure of all Central Public Sector Enterprises is fixed and

determined by Government of India- The Department of Public Enterprises

is the administrative machinery to issue notification in this regard. The

358

company issues separate notifications for Executive and Non Executive

categories of employees for revising and fixing the pay structure.. These

notifications are based on the Government of India's instructions and

notifications.

The Department of Public Enterprises, under the Ministry of Heavy

Industries and Public Enterprises had issued instructions and guidelines for

revision of pay scales.21 of Board of level and below Board level executives

and Non Umonised Supervisors in Central Public Sector Enterprises w.e.f.

January 1, 2007. Similarly the Department of Public Enterprises had

Issued instructions of revision of pay of workmen category of Central

Public Sector Enterprises.22

______________________________________________________________________________________________

21. Office Memorandum, No. 2(70)/08-DPE (WC)-GLXVI p8, Department of Public Enterprises, Ministry of

Heavy Industries and Public Enterprises, Government of India, New Delhi, November 26, 2008.

22. Office Memorandum, No. 2(7)/06-DPE(WC)-GL VI, Department of Public Enterprises, Ministry of Heavy

Industries and Public Enterprises, Government of India, New Delhi, May 1, 2008

359

Subsequently, GAIL (India) Limited issued two separate office orders for

revising the pay of both categories namely

i Board level and Below Board level executives w.e.f. January 1,

200723

ii Workmen (Non Executive) w.e.f January 1, 200724

GAIL (India) Limited is a Schedule A Category public company. So it

enjoys the highest level of pay packages among public companies of India.

The Company offers a number of economic benefits, other than basic pay

and dearness allowance, which match the best in the industry (Appendix

_____________________________________________________________________________________________

23. Office Order, No. CO/HR/Rol/WR-13, Corporate HR Department, GAIL (India) Limited, New Delhi,

April 30, 2009

24. Office Order, No. CO/HR/ER/WR-14, Corporate HR Department, GAIL (India) Limited, New Delhi,

January 31, 2011

360

Following tables depict the basic pay scales in both categories (Executive

and Non Executive)Table 5.4

Table: 5.4Pay Scales of Executive Category employees of GAIL (India)

Limited

Grade Pay Scales (in Rupees)

CMD 80000-125000

Director 75000-100000

E-9 62000-80000

E-8 51300-73000

E-7 Subject to max. 68000

E-6 43200-66000

E-5 36600-62000

E-4 32900-58000

E-3 29100-54500

E-2 24900-56500

E1 20600-46500

E-0 16400-40500

Source: Corporate HR Department, GAIL (India) Limited (office order

No. CO/HR/Pol/WB-13 dated April 30, 2009)

361

Table 5.5 Pay Scales of Non Executive Category employees of GAIL

(India) Limited

Grade Pay Scale (in Rupees)

S-7 16300-38500

S-6 15700-37000

S-5 14500-36000

S-4 13500-34000

S-3 12500-33000

S-2 11700-28500

S-1 11000-25000

S-0 10500-24000

Source : Corporate HR Department, GAIL (India) Limited (office order

No. CO/HR/ER/WR-14 dated January 31, 2011)

A number of other benefits are added to the basic pay of the employees,

like,

i. Industrial Dearness Allowance (IDA)

It is revised by Government of India guidelines on

regular basis.

362

ii. House Rent Allowance (HRA)

It is fixed on the basis of following Table:

Table 5.6 City Classification For HRA of Employees:

Cities with

population

Classification (revised) HRA rates % of

Basic pay

50 lakh and above X 30%

5 to 50 lakh Y 20%

Below 5 lakh Z 10%


No. CO/HR/ER/WR-14 dated January 31, 2011)

iii. Non Practicing Allowance (NPA)

N.P.A. at the rate of 25 percent of revised basic pay is paid to

Medical officers w.e.f. November 26, 2008 subject to the condition

that sum of basic pay plus NPA should not exceed Rs. 85000 p.m.

iv. North-Eastern 9Special Duty) Allowance

This allowance is allowed to employees post in North-Eastern areas

at the rate of 12.5 percent of basic pay w.e.f. November 26, 2008

363

v. Company owned/Company leased/Self leased

Accommodation

The employees of the Company get a handsome benefit in case they

enjoy self lease/Company lease/Company owned residential facility

subject to the actual rent paid.

The ceiling25 for this benefit is under:

Table 5.7, Cealing For Leased residential Allowance:

Cities population Classification Self/Company based

accommodation %

of maximum of

corresponding pay

scale

50 lakh and above X 45%

5 to 50 lakh Y 35%

Below 5 lakh Z 25%


No. CO/HR/ER/WR-14 dated January 31, 2011).

____________________________________________________________ 25. Office Order, No.CO/HR/ER/WR-14 Corporate HR Department, GAIL (India) Limited January 31, 2011,

p.6

364

vi. Outfit Maintenance Allowance

An outfit maintenance allowance is paid to workers (Non Executive)

at the rate of Rs. Five hundred per month.

vii. Gun Allowance

This allowance paid to eligible workmen (Non Executive) working

in security/remote areas tribal area etc. at the rate of Rs. Two

hundred per month.

viii. Cafeteria Approach for Perquisites and Allowance

The Company is following a very innovative, HRM practice in the

form Cafeteria Approach, on the basis of guidelines26 issued by

Government of India for all Central Public Sector Undertakings

which have signed MoU with their respective ministry/department.

This approach is very beneficial and provides an open option to

employees to choose or not, any perk or allowance from a set of perk

or allowance in a manner that the total of these allowance does not

exceed the 47 percent of their revised basic pay w.e.f. November 26,

2008. The employee, therefore, gets that benefit which suits him.

______________________________________________________________________________________________

26. Office Memorandum No. 2 (70)/8-DPE (WC)GL-XVI/08, dated November 26, 2008, Department of Public

Enterprises, Ministry of Heavy Industries and Public Enterprises, Government of India, New Delhi. p.2

365

The following set of perks and allowances is provided under 'Cafeteria

Approach'

Table -5.8 Perks and Allowances in Cafeteria Approach

Heads Maximum upto %

of revised basic pay

Leave Travel Concession (LTC)/ Holiday6 Home 30%

Children Education Allowance (CEA) for the

school/college going children for employees having

school/college going child/children

20%

Transport Allowance for employees owning and

maintaining four/two wheeler

Rs. 800

Catering Expense Reimbursement )CER) 20%

House Upkeep Allowance (including cable

connection charges)

10%

Domestic Help Allowance 10%

Self-Development and Professional updating

Allowance

10%

Incentive for adopting small family norms Notified rates

Productivity Allowance 10%

Personal Allowance for HRA protection Actual amount

Personal Allowance 15%

Source: Office Order no. CO/HR/ER/WR-14 dated January 31, 2011

Corporate HR Department, GAIL (India) Limited.

366

ix. Performance Related Pay (PRP)

The Company has in practice a scheme of Performance Related Pay

(PRP) in line with the guidelines issued by Department of Public

Enterprises, Government of India.

This pay is determined on the basis of the performance level of

Company/Unit and the individual concerned also. The broad

parameters for this pay are that 60 percent of PRP will be based on

the profits before Tax (PBT) and performance of the Company. 40

percent of PRP will be based on the incremental profit and individual

performance rating of employee. The total PRP distributed at limited

to 5 percent of the financial year's Profit Before Tax for employees

both in Executive and Non Executive category. The eligibility of

employee is get PRP is explained as under:

Table : 5.9 PRP eligibility for employee:

PAD rating Eligibility level for PRP

Outstanding 100%

Very Good 80%

Good 60%

Satisfactory 40%

Poor Nil

Source: Corporate HR Department, GAIL (India) Limited.

367

This system of PRP helps and motivates an employee to raise his own level

of performance as well as contribute maximum to the overall efficiency

and effectiveness of the Company, for drawing the maximum benefits.

The employees of the Company work very hard to achieve all the

good standards in performance. The Company is showing a Compounded

Annual Growth Rate (CAGR) over 1.3 percent in last decade and gives

full credit to its 'Team Gail' i.e. entire work force of the Company.

The PRP is linked to Company's performance in MoU ratings as

under:

Table : 5.10 Performance level of Company for PRP:

MoU Rating Eligibility level

Outstanding 100%

Very Good 80%

Good 60%

Satisfactory 40%

Poor Nil

Source: Corporate HR Department, GAIL (India) Limited.

368

x. Other Financial Benefits

There are a number of other financial benefits which have been

grouped in this broad category. These include:

a) Provident Fund Scheme: The employees get the benefit of

Contributory Provident Fund Scheme as the rules of Government of

India.

b) Various benefits of social security Acts : The employees get all the

regular benefits of all the Social Security Acts framed by the

Government of India from time to time.

c) Medical Reimbursement Benefits: The employees get the benefits of

full medical reimbursement in case of indoor medical treatment. The

Company has on its panel the best hospitals and Authorized Medical

Attendants (AMA's).

d) Financial Assistance in case of Death/Total Permanent Disablement

of an Employee in harness: The Company has a fully fledged

financial assistance policy for its regular employees who die in

harness or get permanently disabled during service. The ceiling for

this assistance is depicted as under:

369

Level/Grade Amount (in Rupees)

S-O to S-6 400000

S-7 to E-1 500000

E-2 to E-4 600000

E-5 to E-7 700000

E-8 and above 800000

This financial assistance is not given in case of suicidal death.

e) Leave Encashment and Encashable Compensatory Offs (ECOs):

These benefits are available on the guidelines of Government of

India, issued from time to time.

f) Annual and other Increments: The employees get the annual

increment at the rate of 3 percent of their basic pay. In addition they

get Promotion increments (when applicable) at the rate of 3 percent

of their basic pay. Further the employees get stagnation increment at

the rate of 3 percent of their basic pay. Employees are allowed to

draw maximum three stagnation increments one after every two

years, upon reaching the maximum of the revised pay scale provided

the employee gets a rating of 'Good' or above. All these increments

are rounded to ten or next multiple of Rs. Ten.

370

xi. Reward and Recognitions

The Company has a very inspiring and motivating scheme for

recognizing and rewarding top performance of individual employees

and teams at collective level. This scheme is named as INSPIRE. It

stands for, Identifying and Nurturing Superior Performance in

Recognizing Employees (INSPIRE).

Its major objectives are to motivate the employees to perform in a

better way and to enthuse a spirit of competition in them. Another

objective is to build leadership, team building and total quality

management initiatives in employees. All regular employees of the

Company are eligible to compete in this category.

Both informal and formal methods are used to appreciate and

recognize the top performers.

Under the informal methods, a Thank You Card is given to the top

performing employees. The receiver of the card also responds to

show his concern for recognition of his positive work. Total 12 cards

are issued in a year (once every month). The names and photographs

are displayed on internet of the Company along with the reason for

that.

371

Further that employee can give that Thank You can to some other

employee for showing his/her gratitude and by expressing his/her views on

internet.

The employee receiving maximum number of cards in further

appreciated by a written letter of appreciation from the Director.

The Formal Reward Program at rewarding and recognizing the

employees and their teams. In this category six rewards are given for

outstanding performance of work, four rewards for 'Other than work' and

two rewards for 'Team Performance'.

372

Following are the details of Formal Reward Program

Table 5.11 Formal Reward Program in GAIL (India) Limited:

Sr. No.

Reward Category Target Group Maximum

number

of

Rewards 1. Vision and Leadership Award

(Performance at Work) E-9 and E-8 1

2. Potential Future Leader(Performance at Work)

E-5 to E-7 1

3. Young Achievers Award (Performance at Work)

E-1 to E-4 1

4. Lifetime Achievement Award (Performance at Work)

All Levels 1

5. Non-Executive of the Year Award (Performance at Work)

Non Executive (all categories)

1

6. Suggestion of the Year Award (Performance at Work)

All Employees 1

7. Women Employee of the Year Award (Performance at Work)

All Women employees 1

8. The Fittest Fire and Safety Personnel of the Year Award (Performance at Work)

All Non Executive employees of Fire and Safety department.

1

9. Outstanding contribution in Emergent situation Award (Other than Work)

All levels included (Max 3 in a year)

1

10 GAIL Sports Idol of the Year Award (Other than Work)

All Employees, except those appointed through Sports Quota

1

11 GAIL Quiz Idol of the Year (Other than Work)

All employees 1

12 GAIL Singing Idol of the Year (Other than Work)

All Employees 1

13 TEAM AWARD Corporate Challenge Scheme

All Employees (Team of 4-6 members)

Revival of existing scheme

14 TEAM AWARD : Best Performing team

All Employees (Team of 4-6 members)

Source: Corporate HR Department, GAIL (India) Limited

373

(i). Pay structure and scales of the Company play a good supportive role

in the life of employees.


Executive 96 96 4 4 100


Analysis:

96 percent of the executives agree that pay structure and scales of the Company play a

good supportive role in their lives.

4 percent of the executives do not agree that pay structure and scales of the Company

play a good supportive role in their lives.

97 percent of the non-executives agree that pay structure and scales of the Company

play a good supportive role in their lives.

3 percent of the non-executives do not agree that pay structure and scales of the

Company play a good supportive role in their lives.

(ii). Perks and allowances paid other than salary are very good.


Executive 93 93 7 7 100


Analysis:

93 percent of the executives agree that the perks and allowances paid other than salary

are very good.

374

7 percent of the executives do not agree that the perks and allowances paid other than

salary are very good.

91 percent of the non-executives agree that the perks and allowances paid other than

salary are very good.

9 percent of the non-executives do not agree that the perks and allowances paid other

than salary are very good.

(iii). Cafeteria Approach 'designed to club different perks and allowances

is not a rational method.


Executive 11 11 89 89 100


Analysis:

11 percent of the executives agree that the Cafeteria Approach 'designed to club

different perks and allowances is not a rational method.

89 percent of the executives do not agree that the Cafeteria Approach 'designed to club


10 percent of the non-executives agree that the Cafeteria Approach 'designed to club


90 percent of the non-executives do not agree that the Cafeteria Approach 'designed to

club different perks and allowances is not a rational method.

375

(iv). Option and freedom given to employees to choose the perks of their

choice through Cafeteria Approach is appreciable.


Executive 96 96 4 4 100


Analysis:

96 percent executives agree that option and freedom given to employees to choose the

perks of their choice through Cafeteria Approach is appreciable.

4 percent executives do not agree that option and freedom given to employees to choose

the perks of their choice through Cafeteria Approach is appreciable.

95 percent non-executives agree that option and freedom given to employees to choose

the perks of their choice through Cafeteria Approach is appreciable.

5 percent non-executives do not agree that option and freedom given to employees to

choose the perks of their choice through Cafeteria Approach is appreciable.

(v). Medical Benefits and re-imbursement is always a hassle free process

in the Company.


Executive 97 97 3 3 100

Non-Executive 295 98.33 5 1.66 300

376

Analysis:

97 percent of the executives agree that the Medical Benefits and re-imbursement is

always a hassle free process in the Company.

3 percent of the executives do not agree that the Medical Benefits and re-imbursement

is always a hassle free process in the Company.

98.33 percent of the non-executives agree that the Medical Benefits and re-imbursement

is always a hassle free process in the Company.

1.66 percent of the non executives do not agree that the Medical Benefits and re-

imbursement is always a hassle free process in the Company.

(vi). Performance Related Pay (PRP) system helps the employee to raise

the level of his/her efficiency.


Executive 97 97 3 3 100

Non-Executive 296 98.66 4 1.33 300

Analysis:

97 percent of the executives agree that the performance Related Pay (PRP) system helps

the employee to raise the level of their efficiency.

3 percent of the executives do not agree that the performance Related Pay (PRP) system

helps the employee to raise the level of their efficiency.

98.66 percent of the non-executives agree that the performance Related Pay (PRP)

system helps the employee to raise the level of their efficiency.

1.33 percent of the non-executives do not agree that the performance Related Pay (PRP)

system helps the employee to raise the level of their efficiency.

377

(vii). North East area allowance or Remote/Tribal area allowance are

adequate in their present form.


Executive 90 90 10 10 100

Non-Executive 265 88.33 35 11.66 300

Analysis:

90 percent of the executives agree that the North East area allowance or Remote/Tribal

area allowance are adequate in their present form.

10 percent of the executives do not agree that the North East area allowance or

Remote/Tribal area allowance are adequate in their present form.

88.33 percent of the non-executives agree that the North East area allowance or


11.66 percent of the non-executives do not agree that the North East area allowance or


(viii). House Rent Allowance (HRA) paid to employees in present form is

adequate.


Executive 93 93 7 7 100


Analysis:

93 percent of the executives agree that the House Rent Allowance (HRA) paid to them

in present form is adequate.

3 percent of the executives do not agree that the House Rent Allowance (HRA) paid to

them in present form is adequate.

378

91 percent of the non-executives agree that the House Rent Allowance (HRA) paid to

them in present form is adequate.

9 percent of the non-executives do not agree that the House Rent Allowance (HRA)

paid to them in present form is adequate.

(ix). Superannuation benefits in the Company are justified and rational


Executive 97 97 3 3 100

Non-Executive 286 95.33 14 4.66 300

Analysis:

97 percent of the executives agree that superannuation benefits in the Company are

justified and rational.

3 percent of the executives do not agree that superannuation benefits in the Company

are justified and rational.

95.33 percent of the non-executives agree that superannuation benefits in the Company

are justified and rational.

4.66 percent of the non-executives do not agree that superannuation benefits in the

Company are justified and rational.

(x). Pay Scales and benefits provided are enough for an employee to stay

with the company.


Executive 92 92 8 8 100


379

Analysis:

92 percent of the executives agree that the Pay Scales and benefits provided are enough

for them to stay with the company.

8 percent of the executives do not agree that the Pay Scales and benefits provided are

enough for them to stay with the company.

97 percent of the non-executives agree that the Pay Scales and benefits provided are

enough for them to stay with the company.

3 percent of the non-executives do not agree that the Pay Scales and benefits provided

are enough for them to stay with the company.

The reward assessment year is done every financial year. The reward is

given on the basis of nominations by the employees. All nominated

applications are screened and evaluated by a Jury though interviews.

Finally the rewards are given on August 16, every day which is celebrated

as the Foundation Day every year.

So, a review of all these financial benefits along with the pay

structure clearly indicates the existence of clear and strategic HRM

practices which aim to take care of socio-economic issues in the Company.

The sample selected from Executive and Non Executive categories

was mailed a questionnaire to check the effectiveness of pay structure and

other related financial benefits. The feedback received from both categories

in depicted as under :

380

Employer-Employee Relations as a measure of HRM practice in

GAIL (India) Limited.

The Employer-Employee relations in pblic sector companies are

infect relations between top management and lower hierarchy employees.

Top management i.e. Board of Directors include some other top

management posts like General Managers, Deputy General Managers,

Managers and Deputy Managers also.

The working class begins from lowest hierarchy and goes upto the

level which next lower to middle management.

GAIL (India) Limited is a highly profit making Navratna Company,

where the Board of Directors have additional financial and administrative

powers to take the decisions which suit the interests of the Company in a

best possible manner. The Company has a very developed working culture

where all projects and tasks are undertaken according to its vision and

mission. The best known management practices are used to achieve the

highest standards both in quantity and quality of production and services

provided.

Total quality management is one of the core values of the Company.

The management takes the best care of employees by providing a very

comfortable working environment and world class facilities.

381

The employees are imparted intensive training to develop their

minds, skills and energies in a way that can be in best interests of the

Company. The management and employees are called 'Team GAIL' shows

a very high level of motivation and takes care of the customers and stake

holders of the Company.

The Company has taken some very strong and innovative initiatives

to maintain a perfect harmonial relationship between the management and

working class. A few among those are listed as under:

a) Total Quality Management (TQM) philosophy : The Company has

developed eight core values and has named, it 'GAIL Total Quality

Management Philosophies', These philosophies are Customer-

Focused Organization. Leadership, Involvement of People, Process

Approach, Systems Approach to Management, Continual

Improvement, Factual Approach to Decision Making and Mutually

Beneficial Supplier Relationships. (Annexure )

b) Open House System: This is one of the best practices in the

Company which brings the management and working class very

close to each other. The General Managers or the Plant heads are

available on video conferencing for direct negotiations, idea sharing

and listen to complaints and grievances if any. There are some days,

382

which are announced in advance on Company internet when the

Chairman and Managing Director is available for open discussion

with working class.

c) Recognition and Reward through INSPIRE program: The Company

has devised a very innovative practices named as INSPIRE

(indentifying and Nurturing Superior Performance in Recognizing

Employees). There are fourteen different categories, which include

eight rewards for Performance at work, four rewards for category

'Other than work' and two rewards for 'Team Performance'. It is a

very fair and transparent program based on nominations from

employees and management and then short listing and evaluation by

an independent Jury. These awards are given on 'Founder's Day' i.e.

August 16, every year.

d) Six Sigma Approach : The Company uses the important

management practice at all of its plants and zonal offices. It is one of

the best known management practices in the world and GAIL (India)

Limited was the first Company in oil and gas sector in India to

implement in all of its plants. It is a top to bottom down management

process where training is provided under 'Black Belt', and 'Green

Belt' Categories is known as 'Six Thinking Hats' also in the

383

Company. It takes care of strengthening the management worker

relations also as a part of its different studies.

e) Grievance Redressal Procedure: The Company believes in the

philosophy of an open-door policy in the matter of employee's

grievances. Any aggrieved employee can meet his plant head or head

of HR department and discuss his grievance. To make this system

more convenient, a time boudn mechanism is set in the Company.

The HR Department maintains the record of all grievances and the

settlements as per the written instructions from corporate office27 of

the Company. The aggrieved employee has the right to appeal to the

level of Director (HR), if the need arises. There are specified formats

for addressing the grievance in different stages. (Annexure)

f) Open and Transparent Policy Mechanism: GAIL (India) Limited is

the firts company in oil and gas sector in India to introduce the

system of total transparency in all of its policies including the

Performance and Development (PAD) reports of the employees.

____________________________________________________________ 27. Office Order No. CO/Pers/Pol/W-7, dated July 7, 1993, Corporate HR Department, GAIL (India) Limited,

New Delhi.

384

Unlike other companies where Annual Confidential Reports (ACR's)

are written by the management, GAIL (India) Limited fillows an

open system for performance appraisal of employees. Any employee

can check his PAD report and see the justifications and reasons for

his grade, written by his authority. PAD system includes self

appraisal also.

Promotion policy also gives due credit to the open and

transparent system of PAD ratings.

g) Human Resource Valuation: The Company has devised a very

strong input called Human Resource Valuation, which in itself is a

very effective tool to raise the level of morale in its employees.

The company uses the Economic Approach Model to know

the values of its employee to the Company in terms of Rupees. This

exercise was performed by GRant Thornton, a leading international

accounting firm from UK. Its report was submitted on June 9, 200628

According this report the value of Human Resource per employee in

the Company was Rs. One crore.

____________________________________________________________ 28. Winning Momentum, Annual Report 2005-06, GAIL (India) Limited, New Delhi, p. 76

385

The great value of human resources in communicated to all the

employees through different media like intranet, website of

company, magazines, circulars and annual reports.

The knowledge of this great value individually gives every

employee a feeling of pride and he can equate himself with every

employee, howsoever, senior he may be, in terms of value.

There are two employee associations called GAIL Officer's

associations and GAIL Employees Association or GAIL Karamchari

Sangh.29 The leaders and representatives of these associations are

invited to important Board level meetings when some important

policy decision is to be made, including pay revisions.

GAIL (India) Limited is one of rarest companies in India

where there are no reported cases of strikes or protests in its plants,

units, offices or Corporate office. The reports of Comptroller and

Auditor General (CAG) of India testify this factor every year in its

annual report. The only cases of strikes have been the general cell of

strikes by all Oil and Gas sector Companies of India. Individually,

the Company maintains the best Employer Employee relations.

____________________________________________________________ 29. www.gailonline.com

386

A big number of socio-economic measures have been explained in

the earlier part of this chapter, which indicates that job satisfaction level of

employees in the Company is quite high.

GAIL (India) Limited has won a number of awards with regard to its

good management worker relations, like 'Rating as one of the best

Employers in India' by Hewitt International, which is a renowned

international company, conducting surveys of different leading

international companies. It has won CII-Exim Award for being best

employer in its category. Further it has won the Best PSU Award in

Corporate Governance from President of India in 2009, Golden Peacock

Award from Government of India and a number of other national and

international awards. It is rated as the safest and Greenest Company of

India by British Safety Council.

It is concluded that the Employer Employee Relations as a measure

of strong HRM practice are very good in GAIL (India) Limited.

387

The observations regarding Employer Employee relations as HRM

practices collected from the questionnaire given to the sample of

employees in Executive and Non Executive category are as under:

(i). Employees of the Company get their due respect and recognition

from top management and Board of Directors


Executive 97 97 3 3 100


Analysis:

97 percent of the executives agree that the Employees of the Company get their due

respect and recognition from top management and Board of Directors.

3 percent of the executives do not agree that the Employees of the Company get their

due respect and recognition from top management and Board of Directors.

95 percent of the non-executives agree that the Employees of the Company get their due

respect and recognition from top management and Board of Directors.

5 percent of the non-executives do not agree that the Employees of the Company get

their due respect and recognition from top management and Board of Directors.

388

(ii). Role of Management is supportive and employee friendly in the

Company.


Executive 96 96 4 4 100

Non-Executive 290 96.66 10 3.33 300

Analysis:

96 percent of the executives agree that the Role of Management is supportive and

employee friendly in the Company.

4 percent of the executives do not agree that the Role of Management is supportive and

employee friendly in the Company.

96.66 percent of the non-executives agree that the Role of Management is supportive

and employee friendly in the Company.

3.33 percent of the non-executives do not agree that the Role of Management is

supportive and employee friendly in the Company.

(iii). 'Open House' System is a very effective tool to strengthen

Management-Worker relation in the Company


Executive 95 95 5 5 100

Non-Executive 292 97.33 8 2.66 300

Analysis:

95 percent of the executives agree that the 'Open House' System is a very effective tool

to strengthen Management-Worker relation in the Company.

5 percent of the executives do not agree that the 'Open House' System is a very effective

tool to strengthen Management-Worker relation in the Company.

389

97.33 percent of the non-executives agree that the 'Open House' System is a very

effective tool to strengthen Management-Worker relation in the Company.

2.66 percent of the non-executives do not agree that the 'Open House' System is a very

effective tool to strengthen Management-Worker relation in the Company.

(iv). 'INSPIRE' program improves management's reputation from

employee’s perception.


Executive 94 94 6 6 100


Analysis:

94 percent of the executives agree that the 'INSPIRE' program improves management's

reputation from their perception.

6 percent of the executives do not agree that the 'INSPIRE' program improves

management's reputation from their perception.

95 percent of the non-executives agree that the 'INSPIRE' program improves


5 percent of the non-executives do not agree that the 'INSPIRE' program improves


390

(v). Grievance Redress System is effectively used in the Company,

when required.


Executive 99 99 1 1 100


Analysis:

99 percent of the executives agree that the Grievance Redress System is effectively used

in the Company, when required

1 percent of the executives do not agree that the Grievance Redress System is

effectively used in the Company, when required

96 percent of the non-executives agree that the Grievance Redress System is effectively

used in the Company, when required

4 percent of the non-executives do not agree that the Grievance Redress System is

effectively used in the Company, when required

(vi). PAD reports are never biased from the management side


Executive 97 97 3 3 100


Analysis:

97 percent of the executives agree that the PAD reports are never biased from the

management side.

3 percent of the executives do not agree that the PAD reports are never biased from the

management side.

391

95 percent of the non-executives agree that the PAD reports are never biased from the

management side.

5 percent of the non-executives do not agree that the PAD reports are never biased from

the management side.

(vii). Open PAD report system helps in trust building and helps the

employee to improvise himself/herself


Executive 100 100 nil 100


Analysis:

100 percent of the executives agree that the Open PAD report system helps in trust

building and helps the employee to improvise himself/herself.

No executive disagree that the Open PAD report system helps in trust building and

helps the employee to improvise himself/herself.

97 percent of the non-executives agree that the Open PAD report system helps in trust

building and helps the employee to improvise himself/herself.

3 percent of the non-executives do not agree that the Open PAD report system helps in

trust building and helps the employee to improvise himself/herself.

392

(viii). Transparency and openness is truly found in the management

activities


Executive 96 96 4 4 100


Analysis:

96 percent of the executives agree that the transparency and openness is truly found in

the management activities.

4 percent of the executives do not agree that the transparency and openness is truly

found in the management activities.

96 percent of the non-executives agree that the transparency and openness is truly found

in the management activities.

4 percent of the non-executives do not agree that the transparency and openness is truly

found in the management activities.

(ix). The management takes adequate steps to develop team building and

leadership qualities in the employees.


Executive 95 95 5 5 100


Analysis:

95 percent of the executives agree that the management takes adequate steps to develop

team building and leadership qualities in the employees.

393

5 percent of the executives do not agree that the management takes adequate steps to

develop team building and leadership qualities in the employees.

96 percent of the non-executives agree that the management takes adequate steps to

develop team building and leadership qualities in the employees.

4 percent of the non-executives do not agree that the management takes adequate steps

to develop team building and leadership qualities in the employees.

(x). The overall Employer-Employees or Management Employee

relations are very good and cordial in the Company.


Executive 97 97 3 3 100


Analysis:

97 percent of the executives agree that the overall Employer-Employees or

Management Employee relations are very good and cordial in the Company.

3 percent of the executives do not agree that the overall Employer-Employees or


94 percent of the non-executives agree that the overall Employer-Employees or


6 percent of the non-executives do not agree that the overall Employer-Employees or


394

So all these findings indicate that the overall effectiveness of HRM

practices in GAIL (India) Limited is very high and the employees in both

the categories i.e. executive and non-executive are very much satisfied in

the Company. The final mean aggregate percentage to the agree/yes has

been taken as the base to find the effectiveness of each HRM practice

analyzed in the research, this mean aggregate percentage is expressed in the

concluding Chapter-VII.

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