1. CHAPTER – 1
The term 'human resources' as used in organizations describes the
workforce capacity available to devote to the achievement of organization’s
objectives. The subject has drawn upon concepts developed in
industrial/organizational psychology and system theory. Human resources has
at least two related interpretations depending on context. The original usage
derives from political economy and economics, where it was traditionally called
labor, one of four factors of production. This perspective has shifted as a
consequence of further ongoing research into more applied approaches. The
subject has expanded to 'Human Resources Development', also called
Investment in Human Capital. Such development may apply to individuals
within an organization or applied beyond the level of the organization to that of
industry sectors and nations.
1.1.1 Human resources purpose and role
In simple terms, an organization's human resource management strategy
should maximize return on investment in the organization's human capital and
minimize financial risk. Human Resources seeks to achieve this by aligning the
supply of skilled and qualified individuals and the capabilities of the current
workforce, with the organization's ongoing and future business plans and
requirements to maximize return on investment and secure future survival and
success. In ensuring such objectives are achieved, the human resource
function purpose in this context is to implement the organization's human
resource requirements effectively but also pragmatically, taking account of
legal, ethical and as far as is practical in a manner that retains the support
and respect of the workforce.
2. 1.1.2 Key functions
Human Resources may set strategies and develop policies, standards,
systems, and processes that implement these strategies in a whole range of
areas. The following are typical of a wide range of organizations:
• Recruitment, selection, and on boarding (resourcing)
• Organizational design and development
• Business transformation and change management
• Performance, conduct and behavior management
• Industrial and employee relations
• Human resources (workforce) analysis and workforce personnel data
• Compensation, rewards, and benefits management
• Training and development (learning management)
Implementation of such policies, processes or standards may be directly
managed by the HR function itself, or the function may indirectly supervise the
implementation of such activities by managers, other business functions or via
third-party external partner organizations.
1.1.3 Human resources management trends and influences
In organizations, it is important to determine both current and future
organizational requirements for both core employees and the contingent
workforce in terms of their skills/technical abilities, competencies, flexibility
etc. The analysis requires consideration of the internal and external factors
that can have an effect on the resourcing, development, motivation and
retention of employees and other workers.
External factors are those largely out-with the control of the
organization. These include issues such as economic climate and current and
future labor market trends (e.g., skills, education level, government investment
3. into industries etc.). On the other hand, internal influences are broadly
controlled by the organization to predict, determine, and monitor—for example
—the organizational culture, underpinned by management style, environmental
climate, and the approach to ethical and corporate social responsibilities.
Human Resources Development is a framework for the expansion of
human capital within an organization or (in new approaches) a municipality,
region, or nation. Human Resources Development is a combination of training
and education, in a broad context of adequate health and employment policies
that ensures the continual improvement and growth of the individual, the
organization, and the national human resourcefulness. Adam Smith states,
“The capacities of individuals depended on their access to education”. Human
Resources Development is the medium that drives the process between training
and learning in a broadly fostering environment. Human Resources
Development is not a defined object, but a series of organized processes, “with
a specific learning objective”. Within a national context, it becomes a strategic
approach to intersectoral linkages between health, education and employment.
Human Resources Development is the structure that allows for
individual development, potentially satisfying the organization's, or the nation's
goals. Development of the individual benefits the individual, the organization—
and the nation and its citizens. In the corporate vision, the Human Resources
Development framework views employee as an asset to the enterprise, whose
value is enhanced by development, "Its primary focus is on growth and
employee development & emphasizes developing individual potential and skills"
Human Resources Development in this treatment can be in-room group
training, tertiary or vocational courses or mentoring and coaching by senior
employees with the aim for a desired outcome that develops the individual's
performance. At the level of a national strategy, it can be a broad intersectoral
approach to fostering creative contributions to national productivity.
4. 1.1.6 Training
At the organizational level, a successful Human Resources Development
program prepares the individual to undertake a higher level of work, "organized
learning over a given period of time, to provide the possibility of performance
change". In these settings, Human Resources Development is the framework
that focuses on the organizations competencies at the first stage, training, and
then developing the employee, through education, to satisfy the organizations
long-term needs and the individuals’ career goals and employee value to their
present and future employers. Human Resources Development can be defined
simply as developing the most important section of any business, its human
resource, by attaining or upgrading employee skills and attitudes at all levels to
maximize enterprise effectiveness. The people within an organization are its
human resource. Human Resources Development from a business perspective
is not entirely focused on the individual's growth and development,
"development occurs to enhance the organization's value, not solely for
individual improvement. Individual education and development is a tool and a
means to an end, not the end goal itself" .The broader concept of national and
more strategic attention to the development of human resources is beginning to
emerge as newly independent countries face strong competition for their skilled
professionals and the accompanying brain-drain they experience.
Employee recruitment forms a major part of an organization's overall
resourcing strategies, which identify and secure people needed for the
organization to survive and succeed in the short to medium-term. Recruitment
activities need to be responsive to the ever-increasingly competitive market to
secure suitably qualified and capable recruits at all levels. To be effective these
initiatives need to include how and when to source the best recruits internally
or externally. Common to the success of either are; well-defined organizational
5. structures with sound job design, robust task and person specification and
versatile selection processes, reward, employment relations and human
resource policies, underpinned by a commitment for strong employer branding
and employee engagement and on boarding strategies.
Internal recruitment can provide the most cost-effective source for
recruits if the potential of the existing pool of employees has been enhanced
through training, development and other performance-enhancing activities
such as performance appraisal, succession planning and development centers
to review performance and assess employee development needs and
Increasingly, securing the best quality candidates for almost all
organizations relies, at least occasionally if not substantially, on external
recruitment methods. Rapidly changing business models demand skill and
experience that cannot be sourced or rapidly enough developed from the
existing employee base. It would be unusual for an organization to undertake
all aspects of the recruitment process without support from third-party
dedicated recruitment firms. This may involve a range of support services, such
as; provision of CVs or resumes, identifying recruitment media, advertisement
design and media placement for job vacancies, candidate response handling,
short listing, conducting aptitude testing, preliminary interviews or reference
and qualification verification. Typically, small organizations may not have in-
house resources or, in common with larger organizations, may not possess the
particular skill-set required to undertake a specific recruitment assignment.
Where requirements arise, these are referred on an ad hoc basis to government
job centers or commercially run employment agencies.
Except in sectors where high-volume recruitment is the norm, an
organization faced with sudden, unexpected requirements for an unusually
large number of new recruits often delegate the task to a specialist external
recruiter. Sourcing executive-level and senior management as well as the
acquisition of scarce or ‘high-potential’ recruits has been a long-established
market serviced by a wide range of ‘search and selection’ or ‘headhunting’
consultancies, which typically form long-standing relationships with their
6. client organizations. Finally, certain organizations with sophisticated HR
practices have identified there is a strategic advantage in outsourcing complete
responsibility for all workforce procurement to one or more third-party
recruitment agencies or consultancies. In the most sophisticated of these
arrangements the external recruitment services provider may not only
physically locate, or ‘embed’, their resourcing team(s) in the client
organization's offices, but work in tandem with the senior human resource
management team in developing the longer-term HR resourcing strategy and
1.1.8 Other considerations
Despite its more everyday use terms such as "human resources" and
similarly "human capital" continue to be perceived negatively and maybe
considered an insulting of people. They create the impression that people are
merely commodities, like office machines or vehicles, despite assurances to the
Modern analysis emphasizes that human beings are not "commodities"
or "resources", but are creative and social beings in a productive enterprise.
The 2000 revision of ISO 9001 in contrast requires identifying the processes,
their sequence and interaction, and to define and communicate responsibilities
and authorities. In general, heavily unionized nations such as France and
Germany have adopted and encouraged such approaches. The International
Labour Organization also in 2001 decided to revisit, and revise its 1975
Recommendation 150 on Human Resources Development. One view of these
trends is that a strong social consensus on political economy and a good social
welfare system facilitates labor mobility and tends to make the entire economy
more productive, as labor can develop skills and experience in various ways,
and move from one enterprise to another with little controversy or difficulty in
adapting. Another view is that governments should become more aware of their
national role in facilitating human resources development across all sectors.
7. 1.2 SCOPE OF THE STUDY:
The scope of the study is confined to a single unit that is LARSEN &
TOUBRO LIMITED, KANSBAHAL WORKS. To draw a broader conclusion on the
study, the researcher has gone for an intensive study on the areas of HRM & IR
function in the company. This includes-
i. To study the origin & growth of organization & all activity in details.
ii. To study the HR practices prevailing in the organization.
1.3 OBJECTIVE OF THE STUDY
The present research is taken up with following objectives:
i. To present clear picture of the existing HRD practices in the
organizations & their impact on employees.
ii. To find out the extent to which the corporate strategy as reflected in the
company’s HRD polices & Practices which has been successful in
achieving the organizational goals of employees.
1.4 IMPORTANCE OF THE STUDY:
The present study has been organized as an academic requirement as a
partial fulfillment of the master degree in I.R. & P.M.. The students are
required to undertake project work for a period of one month and to submit
dissertations to the affect. Beside other purpose behind study:
i. To make the student acquired with the involved in the industrial
8. ii. Practice is different from theory: practice will increase the knowledge and
skill as well as the experience of the student. So by gaining theoretical
knowledge from class room and practice knowledge through the work
study a student will internship all that are fight in a class room.
In the changing scenario, the need and maintenance of proper discipline
hold great impact in the ultimate goal of the organization.
Methodology is highly essential in the field of social research, while
selecting these methods what should be kept in mind is that these must be
based on a scientific approach. It refers to the matters or techniques used in
the research process or conducting investigation systematically. Methods of
data collection require observation of facts and collection of data. Hence, the
scholar has adopted the following methods of social research.
1.5.1 Historical method
This method is adopted by the researcher in order to study the history of
the organization and also various development of the organization since its
inception till the day of study.
1.5.2 Case study method
This method is more intensive in nature and the potency to have fair
ideas on various accepts. Here the entire unit under the study has been taken
as a case and an in depth study covering all related aspects undertaken.
1.5.3 Statistical Method
This method is used to obtain statistical information about quantity of
production, financial position, man power position, sales turn over, strike,
work stoppage etc.
9. 1.5.4 Survey method
The survey method has been adopted to survey the opinions and
attitudes of management and worker towards the welfare facilities and
indicates the study of organization phenomenon of the company.
1.6 SOURCE OF DATA COLLECTION
Collection of data requires systematic observation of fact. There are two
sources of data collection. They are –
a) Primary source
The primary sources are
b) Secondary source
The Secondary sources are
1.7 TOOLS AND TECNIQUES
For the collection of data from management or executives schedule has
been used. Questionnaires are used personally by the researcher followed with
non participative observation for workers and their representative.
10. 1.8 MODE OF ANALYSIS
A discriminate accumulation of facts do not lead to conclusion but to
confusion. The end result of factory visit was the accumulation of data
quantitatively. These data are analyzed, classified and tabulated. Various
techniques of classification and tabulation are made.
The following chapters are designed basing upon the classification and
analysis of the data and arranged in logical sequence for the clarity of
Chapter 1 – introduction, concept, importance, methodology and
limitations. Chapter 2 – history of the organization, location, raw materials,
production process, organization structure, manpower position and
distribution, etc. Chapter 3 – structure and function of the personnel
department. Chapter 4 – HR practices at L&T Kansbahal. Chapter 5 – over view
of the study. Chapter 6 – brief summary followed by conclusion and a few
1.10 Limitations OF THE STUDY
Like the other social research work, the present study equally suffers from
some limitations. The researcher faced mainly the following limitations during
her study at L&T Kansbahal Works:-
1. Sometimes the management was reluctant to show some records as it
2. The management was not able to spare much time for interview and
discussion due to their professional engagement.
11. 3. Moreover, the study was conducted within a short duration of time that
is only for one month. Whereby it is not possible to complete a study of
this kind which has a vast area in itself. so this short time was also
another limitation to this study.
Inspite of all such above limitations the researchers tried her best to come out
with a objective and bias free project report on important aspect of human
resource practices at L&T Kansbahal Works Ltd.
12. CHAPTER - 2
2.1 Brief Company Background
Larsen & Toubro Limited (L&T), India’s largest engineering, technology
and Construction Company. L&T is a USD 9.8 billion company with global
operation. It is one of the largest and most respected companies in India’s
private sector. The company was founded in Bombay (Mumbai) in 1938 by two
Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro - both of
whom were strongly committed to developing India’s engineering talent and
enabling it to meet the demands of industry. Today, the company sets
engineering benchmarks in terms of scale and complexity.
The core competencies of the company are: -
Engineering & Construction – Projects
Electrical & Electronics Equipments
Machinery & Industrial Products
Corporate Social Responsibility
At present Larsen & Toubro Limited (L&T) employing 26,000 people
across its 130 offices & 30 factories all over the world. Its major manufacturing
13. units are located at Mumbai, Bangalore, Coimbatore, Chennai, Ahmedabad,
Baroda, Kansbahal, Delhi, Kolkata and many places of India.
2.2 GEOGRAPHICAL LOCATION:
Kansbahal located in the western part of Odisa, about 25 kms. away
from Rourkela. It was a small village in early 60’s has developed into a small
township and surrounded by eye catching greenery, situated on the backdrops
of beautiful hills. It is well connected with other parts of the state with the state
highway number – 10 connecting Rourkela-sambalpur, just 20 kms from
2.3 NEAREST RAILWAY STATION:
On Howrah-Mumbai Rail route (SE Railway)
Kansbahal Railway station- 2kms
Rourkela Railway station- 25kms
Rajgangpur Railway station- 12kms
2.4 BUS STATION:
On express high way linking Rourkela to Bhubaneswar or Cuttack via
2.5 NEAREST AIRPORT:
Kolkata- 1 night journey (450 kms)
Bhubaneswar-1 night journey (450 kms)
14. 2.6 Kansbahal Works – An overview
Established in 1938, L&T - Kansbahal Works, a unit under the
Machinery & Industrial Products Division of L&T, is a world class integrated
Machine Building centre with facilities for Castings, Fabrication, Machining
and Assembly shop complimented by design, engineering, quality control and
(L&T – Kansbahal Works, State: - Orissa, India -
TO BECOME a dominant global player
in Crushing and Screening Equipment
and Wind mill castings with
Profitable presence in all major world
Globally bench marked products and
A place among the top 3 terms of market
17. 2.8 Company Policy (Business, Safety, and
The company Integrated Management System Policy is given below:
We shall design, manufacture and supply industrial
machinery and their components/spare that meet or
exceed customer requirements.
We shall strive to perform task free of defects on time,
every time and enhance customer satisfaction through
service before and after sales.
We shall confirm to the applicable OH&S legislation and
create working conditions that prevent the risk of
accidents, incidents, injure and ill-health.
We shall abide by the regulation for environmental
protection, conserve natural resource and reduce
pollution due to our operations.
We shall above all strive for continual improvement in all
18. 2.9 Foundry Business unit
L&T’s only foundry facility is located at Kansbahal and is equipped with
the latest state-of-the-art facilities to manufacture quality castings in steel,
alloy iron, cast iron, with intricate geometries and large tonnages. It have
complete in-house facilities like technology centre, pattern shop, machine
moulding, heat treatment facilities, melting furnaces and complete QA tools.
The plant capacity and range of products are: -
2.9.1 Casting Capacity
Hand Moulding: - 3000 T
Cylinder Moulding: - 500 T
Machine Moulding: - 500 T
2.9.2 Casting Range – Few Kilos to 22 tons in single piece
Steel: - 12 T
Alloy Iron: - 15 T
SG / Cast Iron: - 22 T
2.9.3 Cast Products
Wear Resistant Grinding Elements
Impact Resistant Manganese Steel Castings
Low Alloy High Strength Steel Castings
Spheroidal Graphite and Grey Iron Castings
General Purpose Carbon and Alloy Steel Castings
2.9.4 Quality Accreditation
19. • ISO – 2001, 1400, OSHAS: 1800 certified by DNV
• TUV for pressure tested castings
• CBB (Central Boiler Board) as “Well known Foundry”
(Continuous Sand Mixer)
20. At foundry, L&T Kansbahal manufactures a large range of components
for Wind Mills. It specializes in manufacturing ready-to-fit components for
Wind Turbine Generators in SG iron.
Some of the castings, which are used in windmills & manufactured by
it, are given below:
21. 2.9.5 Fabrication shop
L&T – Kansbahal works fabrication shop is equipped with the latest
state-of-the-art facilities to manufacture fabricated job up to 100 tons capacity.
It covers 9760 sq.mtr of floor area and maximum gantry height is 16 meter.
The major fabrication jobs carried-out are surface minor, TLC, Crushers, and
Impactors. The manufacturing facilities of fabrication shop are:
CNC Profile Cutting Machine X-5.26 M, Y-25 m & Max. Thk - 300mm
Pug Portable Cutting Machine Max. thickness – 50 mm (MS)
Plasma Cutting Machine Max. thickness – 60 mm (SS)
Shearing Machine 10 mm x 2100 mm Max.
Rolling / Bending Machine 100 mm x 700 mm Max. & ID = 3000 mm
Folding Machine 4 mm x 2500 mm Max
Hydraulic Press 500 T / 300 T
Surface Minor is in operation at coal mines
22. 2.9.6 Machine Shop
Machine Shop is equipped with a wide range of machines for Turning
(upto 3.5 m dia x 10 m long) , Boring (10 m x 5 m x 2.2 m with 65 T table
capacity), Cylinder Grinding (2.5 m dia x 10 m long) and Planning (2 m x 1.6 m
x 6 m) of complex welded structures/ castings / forging.
Horizontal Floor Borer (CNC &
Sp. dia 203 mm, X -10 m, Y -5 m, Z -2.2 m,
Job wt:100 T
Horizontal Table Borer (CNC &
Sp. dia 130 mm, job wt.:10 T
Vertical Lathes Table dia:1.2 m - 4.77 m, job wt.:4 T-100 T
Facing Lathes Dia.: 3 m, Length: 10 m
Grinding Machines Double column Plano milling m/c's.
CNC Lathes Turning dia. 550 / 600 mm X length 3 m
CNC Turning Centers Swing over carriage : 925 mm
Stroke : 1000
The consumers for its products are mining and paper manufacturing
units and steel manufacturing industries, wind turbine manufacture units.
2.11 Style of management
L&T is a private sector company. Management attitude is very fair and
normal towards its employees. All types of general matters or problems are
always discussed or settled amicably. Regarding individual issues management
23. settles problems. In case of major issues the management used to discuss with
representatives of all three unions.
In L&T the style of management is democratic leadership or participative
leadership because subordinates fell completely free to discuss things about
the job with their superior.
2.12 Office Time:
There is a punch card system in L&T. It is meant for every worker
employee and employer. Every employee and employer must punch their card
before joining their shifts and when they exit from the shift. Punch card system
is an enter & exit policy.
24. 2.15 Trade union IN L&T KANSBAHAL WORKS:
In L&T, Kansbahal works presently there are three recognized Trade
i. Kansbahal Mazdoor Union
ii. Kansbahal Shramik Sangha
iii Kansbahal Industrial Labour Association
In L&T, Kansbahal works once in every four years there takes place a
settlement between the Management of the company and the any one of the
three trade unions that gets the maximum numbers of vote from the workers in
The recognized Trade Union that was in operation was the Kansbahal
Shramik Sangha (KSS). Its registration number is 643.
The union shall have structured meetings with the management on day
to day issues at various levels as follows:
a) Once a fortnight with Department Head of P&IR.
b) Once a month with the Unit Head.
All the executive meetings of the union are held beyond duty hours and
on weekly off days/holidays. Normally the Executive meetings may be fixed for
duration of two hours once in a month.
25. There are five identified office bearers for day-to-day discussion with
management, of which any three will attend such meetings which may be fixed
with prior appointment.
The size of the Negotiation team for all future negotiation/meeting on
general issue shall not exceed nine members
2.18 SWOT Analysis of Kansbahal Works
In SWOT analysis, we have to consider the most important internal and
external factors (Strength, Weakness, Opportunities, and Threats) that
strongly affect the L&T present and future performance.
After analysis of the key factors, one has needed to check the alignment
of the same with existing organization mission and objectives. If it is not
matching with the organization’s existing strategies, then same must have to
be reviewed and changed. If changed, what will be the effects on the firm is also
need to be monitor.
• In-house technology and
• Market leadership in India
• Cash flow
• Multi-location manufacturing
• Diversified product line
• Strong Management
• Poor quality
• Operational risk
• No R&D
• Organisational structure
• Team Work culture
• Stock price
• Working capital management
• Environment awareness and
• Favorable tax exemptions for
• Steady source of demand
• Huge growth expected in
power sector by 2012
• Alliance with power sector
• Intense competition
• Technology risk
• Over dependence on supplier
• Customer satisfaction
• Potential Development of
• Air Pollution & Prevention Act
26. 2.19 The Future of L&T-Kansbahal Works:
The financial results of L&T-Kansbahal Works for the year 2009-10 are
not too encouraging as far as profits are concerned. The company has reported
profits of Rs. 33 crore against the previous year’s profit of Rs.30 crore, thereby
achieving a slim growth of ten percent. However, the turnover has recorded a
sharp jump from Rs. 302 dare to Rs. 378 crore. From another perspective, the
performance has been commendable considering the slump and intense
competition in the mining and crushing business and affects of economy
Kansbahal Works is firmly consolidating itself in two major business
crushing and screening equipments and wind turbine castings, presently,
foundry division contributing around 40% of the total revenue. It has
embarked on a major expansion programme by setting-up a new green field
foundry at Coimbatore that will increase the foundry existing capacity from
12,000 Ton / annum to 35,000 Ton / Annum. A Euro issue of $ 0.5 million
has been planned for this expansion.
In wind mill business, L&T has a handful of competitors among whom
Enercon, Suzlon and BHEL are the major one. Now, the up-coming threats
are even coming from China market. At present, L&T average casting rejection
is about 13-15%, which is very high for wind mill components. As the
27. geographic location of the plant is in remote area, therefore L&T is facing lots of
logistic problems to execute the task timely, which affects adversely the
delivery performance and customer satisfaction.
In crushing and screening business, L&T is facing stiff competition from
METSO and Thysonkrupp. 2008-09 economy recessions affects the crushing
and screening business very badly. An outstanding amount of Rs. 120 crore is
still due to L&T from various customers. There is an order backlog of Rs. 240
crore from this segment.
In 2008-09, L&T enter into the field of power business with joint
collaboration of MHI-Japan. The power product range includes Boilers, VRM,
and Structural etc. A Euro of $100 million has been planned for this
diversification. L&T top management decided to manufacture some of the
power plant equipments at Kansbahal works (ESP-Electrostatic
Precipitators) which will give a business of Rs. 500 crore / annum. Apart from
this some other new project which will be coming at Kansbahal are Wheel-
Loader which will add a value of Rs. 200 crore/annum by the end of 2010-11.
Both the plant expansion work is under progress and production for the same
will be expected by June 2010.
28. 3.1 Introduction:-
As for smooth functioning of any organization five factors are
important. These are man, machine and materials. Among these factors the
most important is man and its related human resources. No organization
however sophisticated can run without men. Man is such a factor responsible
for production having complex, attitudes, motives, behaviors etc. Inspite of all
such characteristics of man they have to be properly organized and
administered in order to achieve organizational effective needs. So, every
organization has a personal department. L&T Kansbahal Works also have a
Personnel Department known as P&IR Department to look after the day to day
administration of its man power. P&IR department has the overall
responsibility in dealing with the human factors in the industry.
3.1.1 Personnel Administration:-
Under the personnel administration, sub-functions are Procurement,
selection of workers, placement, wages and salary administration, promotion,
transfer, appraisal etc, industrial relations function includes agreements,
contracts, settlement of dispute redress of grievances etc. The welfare
functions are intramural and extramural facility, social security, community
welfare and many more. The Personnel and Industrial Relations Department in
L&T Ltd (Kansbahal works) is headed by Senior Deputy General Manager who
takes care of all matters relating to this Department and is answerable to the
CEO of the organization.
3.1.2 LINE-STAFF Relationship:-
The line and staff relationship in L&T Ltd. (Kansbahal works) is really
remarkable. The lines officials are indirect chain of contribute to
accomplishment of the enterprise. On the other hand staff authority is
auxiliary in nature that helps line managers to work most efficiently. There is
good formal as well as informal relationship both the line and staff department.
29. 3.1.3 PERSONNEL POLICY:-
P&IR Department initiate action and condition in administrating all
ascents of personnel policy with in the organization. The personnel policy of
L&T Ltd. (Kansbahal works) is attracting competent personnel with most
potentiality and by their maximum capability in a work environment by
providing opportunities for advancement. The management of L&T Ltd.
(Kansbahal works) always looks after the improvement of workers so that the
laborious and efficient personnel’s get opportunities to develop in the
3.2 Industrial relations in L&T, KANSBAHAL
Being a private sector undertaking maximum production and
maximum profit are preliminary objectives of the L&T Ltd. Kansbahal works.
For this workers cooperation and their satisfaction the job are highly essential.
So, the management is not in a position to take any risk in promoting
individual conflicts, it has a very positive attitude towards the employees. The
management is always ready to help the employees. For each and every
problem, the management tries to find out a perfect solution so that it will get
no room to take form of a dispute. In every four years, the management and
the union sit together and make agreement on certain aspects related to their
working site and some aspects of their non-working site. The management
publishes it in the form of a Memorandum of Settlement. The unions are also
very active and whenever the find any problem, they try to solve that at the
shop floor levels. In this way, the trade unions are also very active .They try to
solve that at the shop floor levels .In this way the trade union also play a
supportive role in promoting a harmonious industrial relations.
HUMAN RESOURCES DEVELOPMENT IN LARSEN AND TOUBRO LIMITED-:-
30. Larsen and Toubro Limited is probably the first organization in India to
introduce an integrated HRD system and to set a separate Human Resources
Development Department, headed by a senior executive to implement the
system. The whole exercise of looking into the Human Resources system was
mainly due to the culture of Excellence, Introspection and Openness in the
Company. Constructive criticism and periodical reviews are common to ensure
maximum mileage from a system or an operation.
The Integrated HRD system.
Performance Appraisal and other interrelated sub-system are
i) Performance appraisal
ii) Potential Appraisal
iii) Employee Counseling
iv) Career Development and planning
vi) Organization Development (OD).
31. Training & Development
HRIS (EPR/INNER CIRCLE/T&D ON SAP)
3.3 ACTIVITIES OF P&IR DEPARTMENT OF L&T
The various activities carried out by the P&IR department of L&T
Kansbahal works are as follows.:-
Personnel Management System (All employees)
Employees Benefits (Car scheme/Bike Schemes/PC Scheme etc).
Long Term Settlement
School Matters (Pr. Schools)
Talent Acquisition (Trainees & Lateral Entries)
Trainees Administration (Supervisory Trainees)
SAP related activities (PA/PMS)
General HR services (Employment Exchange, Induction, Pre
confirmation interviews, ISO etc.)
Database Management (Manpower, CSR etc.)
Education Reimbursement (Unionized)
Own your House Scheme.
Reimbursement to deceased employees
Salary Administration upto M3B
Education Reimbursement (S & Above)
General HR activities like LTIT, team celebration, picnic, Academic
Coordination for merit awards
Monthly Manpower reporting to IPMOC-HR & Accounts
Maintaining employee master
Long Service Award/special Service Awards
PODP, preparing Training Calendars
The P&IR Department of L&T Kansbahal Works is a very important part
of the company. The personnel department is headed by Head HR & IR who
looks after all the working of the department. Under him there is an Assistant
Manager P&IR, who looks after the work of personnel officers .Each executive
in P&IR Department have their role clarity and perform their respective tasks
everyday to achieve the objectives of the organizations.
3.5 PERSONNEL POLICES & BENEFITS:-
3.5.1 Recruitment POLICY:-
The Prime consideration for recruitment shall continue to be based on
efficiency, qualification and suitability for the job.
Before recruitment from outside is considered, possibility of promotion
from the existing cadres will be explored. Other factors being equal, preference
will be given to existing workmen.
3.5.2 Core development programs:-
Core development programs are organized for employees in various cadres
to groom them for shouldering their responsibilities effectively.
■ Supervisory Development Program (SDP) for Supervisory cadre
■ Executive Development Program (EDP) for the Executive cadre
employees. This provides basic Managerial knowledge in subjects like
34. Marketing, Finance, Human Resources and Operations.
■ Management Development Program (MDP) for the Middle Management
■ Senior Management Development Program (SMP) for the Senior
Management cadre employees
■ Top Management Program (TMP) for the Top Management cadre
3.5.3 Management Development Centre:
L&T has a Management Development Centre at Lonavala (in between
Mumbai & Pune) a state of the art training facility. The MDC is constructed in a
prime location spread over 20 acres of land.
All the Management Development Programmes for the middle to top
management are organized at MDC.
In addition to this there are many Training Centers, Technical Training
Workshops and Libraries available at various locations across the company.
3.5.4 Leadership Programs:
These programs are aimed at identifying future leaders in the
organization. These programs are in various categories and cater to the different
requirements of the organization. The nominees go through an assessment center
and the successful candidates are chosen to be groomed for taking higher
responsibilities in the future. The categories are:
35. Supervisory Leadership Program (SLP) - This program is to identify for budding
the leaders in the supervisory cadre.
Execution Leadership Program (ELP) - This program is meant for identifying
and budding leaders in the Executive Cadre as well as in Middle Management
Management Leadership Program (MLP) - This program is meant for identifying
& budding leaders in the Senior Management cadres.
Technology Leadership Programs (TLP) - This program is for identifying &
budding the top talent in the various technology areas to gain technology edge for
3.5.5 Leave Travel Assistance:
Leave Travel Assistance Facility is available for employees as per their
grade. A minimum of 6 days privilege leave has to be applied for, to avail the LTA
Benefits. An employee may avail LTA for each calendar year or may avail LTA for
combined two years.
The employees traveling outside for official purposes can avail an advance
for their expenses through a Travel expenses Format duly authorized by the
concerned HOD. The Expense limit can be understood from the Accounts or HR
Department before commencing the Travel.
3.5.7 Holiday Home Facilities”:
The company maintains Holiday Homes in many places of tourist
interest across India. The employees are entitled for availing this benefit as per
the eligibility criteria. The list of Holiday Homes with the eligibility and the
procedure is available with the concerned Area Office Administration.
36. 3.5.8 Long Service award:
This Award is a token of appreciation from the company for the employees
who have given a considerable period of their services to the company. This award
is given on completion of 20, 25 and 30, 35 and 40 years of service in the
company. The Award includes a letter of appreciation and a trophy.
3.5.9 Long Service Special Awards:
L&T Employees are given Long Service Special Awards in the form of
Preferential Shares of L&T Welfare Company Limited(LTWC), on completion of five,
ten, fifteen, twenty, twenty five, thirty, thirty five & forty years in the company.
3.5.10 L&T Institute Of Technology:
L&T Institute of Technology is a Technical Institute situated at Powai.
This institute offers Diploma courses on various subjects, to the children of
3.5.11 Scholarship & Rewards for the employees' children:
The children of the employees are given rewards & scholarship for
outstanding performance in their examinations as per the schemes applicable to
various classes and various grades of employees.
4.1.1 HUMAN RESOURCE MANAGEMENT
Human resource management is a management function that helps
managers to recruit, select, train and develop members for an organization. It
views people as an important source or asset to be used for the benefit of
organizations, employees and the society. The primary objective of HRM is to
ensure the availability of a competent and willing workforce to an organization.
The activities included in HRM are Human Resource planning, job
analysis and design, recruitment and selection, training and development,
performance appraisal, remuneration, motivation, communication, welfare,
safety and health, industrial relation and many more.
4.1.2 HUMAN RESOURCE DEVELOPMENT
HRD is the process of helping people to acquire competencies. HRD is
mainly concerned with developing the skill, knowledge, attitude and
competencies of people & it is people oriented concept.
In an organizational context, HRD is a process by which the employees
of an organization are helped in a continuous and planned way to:
o Acquire capabilities required to perform various functions associated
with their present and future roles.
38. o Develop their general capabilities as individuals and discover and exploit
their own inner potentials for their own and organizational development
o Develop an organizational culture in which superior-subordinate
relationship, team work & collaboration among sub-units are strong.
o HRD process is facilitated by mechanisms like performance appraisal,
training, organizational development, feedback & counseling, career
development, potential development, job rotation & rewards.
1.HEALTH, SAFETY & WELFARE:
In L&T, Kansbahal the measures taken for recurring employees’ health,
safety & welfare are:
Free check ups of the employees once a year.
Free eye camp for poor people. It also facilitates for free cataract
There is also health insurance for different employee at different cadre.
Inside the plant all types of safety measures are taken like helmets,
gloves, safety shoes, goggles for eyes, ear buds, mask for breathing and safety
apron for the workers.
There is a safety committee that works here & meets at the end of every
2. UNION MANAGEMENT PROBLEM SOLVING FORUM:
39. In L&T, Kansbahal there is a “Works Committee” where the problem
solving work is done. the member in this committee are 16 in total where 8
members represent the union & the other 8 members represent the
management of the company. The quorum of the meeting here is to be 5
This committee meets every month in a year. The issues discussed here
are related to workforce pay structure, quality of work etc.
But the issues that are to be discussed were already been discussed in
their respective departments before coming to the meeting of the committee.
Only at the time of long-term settlement the union & management play a vital
5.1 AN OVERVIEW:-
The summer internship program at Larsen & Toubro limited,
Kansbahal Works for thirty days was really a great feeling for the scholar who
got the practical knowledge about the working of an organization. An overview
presented after due observation regarding the study is as follows:
The HRD practices are carried out efficiently in the company for the
improvement of the human resource. There exist healthy dyadic relations in
the company. The style of management functioning is democratic in nature.
The performance management system in L&T, Kansbahal Works gives
ample time for analysis of the employees’ present status in relation to their
work. The discussion between the superior and the subordinate is free and
40. informal in nature and set the objectives to be achieved for the coming fiscal
The Rewards are decided based upon the performance of the business,
particular unit and the individual’s performance.
The Promotion decisions are based on suitability of the employees for
promotion rather than favoritism.
Here the management believes that growth of an employee is linked
with the growth of the organization. The Career Development Program is fair
and transparent in nature. The employees are informed about the
organizations career growth plan.
Employees have the promotion opportunities to grow in the organization
to reach the higher echelons of Management. The promotions are based on the
performance and competencies of the employees as well as requirements of the
organization. Employees are given the opportunity to work in different fields
based on their competencies and requirements of the organization. Employees
are encouraged to review their performance at least once a year with their
superiors. They may use this opportunity to discuss their competencies, areas of
improvement, career opportunities etc
The Training and Development Program is also very effective here. The
training program in the company is structured around enhancing the overall
competence of the employees. The programs are broadly grouped under two
• Technical/functional skills
• Managerial/behavioural skills
The behavioral/managerial skills are identified through the
Performance Oriented Development Plans (PODP). The units themselves
conduct the technical Training Programs, as the programs are highly
specialized and specific to their technical requirements. Apart from this,
41. employees are nominated for external training programs, seminars,
conferences and workshops to keep themselves updated on the current
knowledge in the field.
The workers are satisfied with the working conditions provided by L&T
Kansbahal works. The workers are provided with proper safety equipments at
the work place. They are also given other benefits like House Rent Allowance,
Service Allowance, Washing Allowance, Transport Allowance, Housing facilities,
Educational facilities, Welfare facilities and Medical & Recreational Facilities.
For achieving organizational goals and objectives, the Company and the
Union agree to encourage the highest possible degree of friendly and co-
operative relation between their respective representative at all levels and with
and between all workmen. The Company & Union have healthy & responsive
attitude reflecting responsible thinking and behaviour based on full
understanding and regard for the respective rights and responsibilities of the
company & its workmen.
The management makes all efforts to remain proactive to the issues of
developing the organization at all levels and in all spheres.
42. CHAPTER –6
While summing up the entire study conducted at L&T Ltd. Kansbahal
Works, the researcher has relied more on inductive method of interviewing and
observing different categories of people of the organization. Chapter 1 is
devoted towards the introduction concept and importance of the study followed
with methodology and limitations. Chapter 2 deals with the profile of the
organization consist of its history, geographical location, raw materials,
manufacturing process, production capacity, consumer, style of management,
list of board of directors. Chapter 3 describes the profile of the personnel
department including its structure, function. The activity of the department
spread to various personnel function, maintains a good track in keeping with
industrial relations and labour welfare functions. Chapter 4 deals with various
human resource practices at L&T. Chapter 5 reflect the opinion of the
management, workers and trade union.
L&T Ltd Kansbahal works, which is heavy engineering division of L&T
group, which is a manufacturing company having sophisticated technology
imported from Germany. At present, this company is on the way of right sizing
its man power.
The importance of human resource (HR) in the emergency world
economic order cannot be over stated. Today economies across the world are
market driver due to cut throat competition. Ground realities have been
changed for the private sectors in India. The competition forces the private
sector for high performance and productivity to sustain in this year.
43. L&T has got a customer focused approach for which it is able to sustain
in market. L&T Kansbahal works in part few years has attained impressive
achievement. Now it is planning further to attain organization goal by satisfying
customer. There is a conducive working climate present in L&T Kansbahal. It is
a profit making organization & running without any conflict among the
employees. All the workers and employees are dedicated to their work to attain
the organizational goals.
6.3 Suggestions for future implementation:
• HR strategy must be developed & align to business strategy to achieve
the corporate strategy.
• Improving the cost of quality of production by effective people
management.( motivation, training, leadership)
• Effective man-hour utilization
• Root cause analysis of employee leaving L&T Kansbahal Works.
• Participation of young potential people in the management decision-
• Reduce food wastage in canteen by making the employees aware about
• Medical facilities for employees parents
• Job rotation for the employees
• Women employee recruitment is less so it is to be increased.
• Better housing facilities for employees
• Improve recreation facilities for employee
• Employee safety in colony premises.
1. ESSENTIALS OF HUMAN RESOURCE MANAGEMENT AND INDUSTRIAL
RELATIONS BY P.SUBBA RAO.
2. HUMAN RESOURCE MANAGEMENT AND PERSONNEL MANAGEMENT
3. HUMAN RESOURCE MANAGEMENT BY C.B. GUPTA.