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Though it is customary to thanks all those who helped me in this project, but since the report of my summer training as part of my course curriculum for MASTER OF BUSINESS ADMINISTRATION (MBA) programmed so I take this, opportunity to offer my gratitude to a number of helping hands for their co-operations and advices to enable me to bring up this project report. My training in IFFCO INDUSTRY has been a worth while experience because of the help I received from a number of people here and I would like to take this opportunity to extend my heart felt thanks to all those who made my training a good learning process. First of all, I express my overwhelming sense of gratitude and special thanks to S.L.M.WARRIER, MANGER (H.R.) (P& A Department) IFFCO Aonla Bareilly for encouraging me to take this topic for research work and providing the stimulus for putting my heart and soul into it. I wish to record my appreciation to MR.D.KALIA (Senior training manager) or giving me this opportunity to do my summer training in this esteemed organization. My sincere thanks also go to Mr. K.K. PANDEY, Training Officer, and IFFCO AONLA who gave me his suggestions, invaluable time and criticism, whenever needed. I will be doing injustice if I didnt thank the employees of IFFCO AONLA, because with out their co-operation my project would not be possible. GUIDANCE IS THE BEST IN THE WAY PROGRESS. I am thankful to them for giving me their views and suggestions regarding training and development at IFFCO AONLA. Finally I would like to thank my teachers and parents for their guidance, and friends who helped me in the completion of this project report.



To make the student conversant with the practical knowledge and the industrial atmosphere implant training is must. The training basically aims at following: To be familiar with the industrial environment. To be aware of what is happening in fast growing professional work. To visualize study text through practical happenings. To explore own fields of project. IFFCO AONLA provided with ample opportunities to pursue above mentioned goals. I am quite sure that the knowledge that I gain in my practical training will prove to be very helpful in my future. Labor welfare work is undertaken by various groups within and outside an organization to improve the living conditions of workers. The objective is to make the worker happy, healthy, committed and loyal. Employers with a progressive outlook have always invested heavy amounts in enriching the life of workers. My humble endeavor and motive in presenting the project report is to present a strategic overview of employees welfare at IFFCO which is an important integral part of Personnel management. It is hoped that this project will serve as a supportive document to research workers as efforts has been tried to make this report an informative, stimulating and self explanatory.

Janki Devi






















Part Part A

Introducti on About IFFCO


During mid- sixties, the co-operative sector in India was responsible for distribution of 70 per cent of fertilizers consumed in the country. This Sector had adequate infrastructure to distribute fertilizers but had no production facilities of its own and hence dependent on public/private Sectors for supplies. To overcome this lacuna and to bridge the demand supply gap in the country, a new cooperative society was conceived to specifically cater to the requirements of farmers. It was a unique venture in which the farmers of the country through their own co-operative societies created this new institution to safeguard their interests. The number of co-operative societies associated with IFFCO has risen from 57 in 1967 to more than 36,000. Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of the Multistate Cooperative Societies act 1984 & 2002, the Society is deemed to be registered as a Multistate Cooperative Society. The Society is primarily engaged in production and distribution of fertilizers. The byelaws of the Society provide a broad framework for the activities of IFFCO as a Cooperative Society. IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant at Kandla both in the state of Gujarat in 1975. Another ammonia - urea complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla was commissioned in 1988. The annual installed capacity of all the plants was 1.62 million tones of Urea and NPK/DAP equivalent to 309 thousand tone of phosphates. The distribution of IFFCO's fertilizer is undertaken through over 36,000 cooperative societies. The entire activities of Distribution, Sales and Promotion are co-ordinate by Marketing Central Office (MKCO) at New Delhi assisted by the Marketing offices in the field. In addition, essential agro-inputs for crop production are made available to the farmers through a chain of 167 Farmers Service Centre (FSC). IFFCO obsessively nurtures its relations with farmers 10

and undertakes a large number of agricultural extension activities for their benefit every year. At IFFCO, the thirst for ever improving the services to farmers and member co-operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission. All that IFFCO cherishes in exchange is an everlasting smile on the face of Indian Farmer who forms the moving spirit behind this mission. IFFCO, to day, is a leading player in India's fertilizer industry and is making substantial contribution to the efforts of Indian Government to increase food grain production in the country. IFFCO's mission is "to enable Indian farmers to prosper through timely supply of reliable, high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activities to improve their welfare.


The organization structure of IFFCO is such as to provide a high degree of collaboration among the managerial personnel. This helps in attaining organizational effectiveness. The structure consists of both line and staff managers but there are a clear demarcation in their authorities and responsibilities. Though the structure provides unlimited powers to the managers yet most of the managers believe in benevolent leadership. This is the main reason behind the new records made by IFFCO. The Head Office of IFFCO is situated at New Delhi. It has cooperative staff that plays a link pin role between cooperative office operating units of Kalol, Kandla, Phulpur, and Aonla units. There are five zones i.e. North Zone, East Zone, West Zone, Central Zone, and South Zone. Each zone has its own Headquarter. The head-quarter of each zone is as follows:


Zone North Zone East Zone West Zone North Central Zone South Zone

Headquarter Chandigarh Kolkata Bhopal Lucknow Bangalore

Each head quarter has certain number of neighboring states under it and the functioning of those states is controlled by that particular head quarter. Each state has a State Office under each zone. Under each State Office there are Area Offices and under each Area Office there are Service Sectors. The organization structure of IFFCO consists of Board of Directors. The Govt. of India nominates two members of the board. The members of the Cooperative Societies nominate rest of the members. A Chairman heads the Board of Directors. The Chairman is the Functional Head of the organization since he is an elected member. There is also a Vice Chairman elected by the members of the Board of Directors. One of the members of the Board of Directors is the Managing Director (MD). The MD is the Executive Head since he is an appointed member. The MD is responsible for carrying out all the functions of the organization.

The Managing Director controls the functions of the following: Director Marketing
Director Finance Executive Director (Personnel &Administration) Executive Director (Technical) Executive Director (Technical Service Deptt. / Planning & Development) The Finance Director and the Marketing Director are also the members 12

of the Board of Directors but they do not have voting rights since they are not elected members.












During last 35 years of existence, IFFCO has taken a remarkable step forward and has established itself as Asias largest fertilizer company.


1) The main thrust of IFFCOs activity is an increasing agricultural productivity through balanced fertilization. 2) Some of the innovative endeavors of IFFCO in the pursuit of its commitment to serve the farming community are village and district adoption programs, intensive fertilizer - promotion campaigns and reclamation of problematic lands. 3) It aims to promote the activities for enriching the life of rural masses playing a role of catalyst by village adoption. 4) To create a healthy social atmosphere by establishing some health care centers in clusters of villages. 5) To create scientific awareness among the farmers. 6) To ensure availability of fertilizers at the farmers doorstep. 7) Other side of IFFCO is to provide relief to rural masses at time of contingencies and to help them in the treatment of wasteland.


IFFCO has grown steadily since its inception today. It has emerged not only as the largest fertilizer producing organization in India but also Asias largest fertilizer co-operative.


Channeling the power of the unity, IFFCO has become an unchallenged frontrunner in India's initiatives. On the other hand, is its massive manufacture base both working in tandem to serve the needs of millions of farming families, nationwide? On last count, IFFCO has membership of a whooping 36,000 member societies separate across INDIA. This year's fertilizers production of 55.50 lakhs tones in the highest ever by IFFCO, further increasing it's lead as the no. 1 fertilizers organization in India. In 2004-2005, IFFCO'S pants contributed nearly a fifth to nations total nitrogenous and phosphoric fertilizers production.

IFFCO production capacity not only offers the best quality product but also enables production at the most competitive cost; constant improvement in energy efficient has been a major focus area a part of optimization of operational cost. At IFFCO, we are firmly on the track leading to farmer's service. A long journey, perhaps w/o an end but with every action a matter of delight a satisfaction for us economy.


Vision & Missio


To augment the incremental incomes of farmers by helping them to increase their crop productivity through balance use of energy efficient fertilizers; maintain the environmental health; and to make cooperative societies economically and democratically strong for professionalized service to the farming community to ensure an empowered rural India.


1. To provide to farmers high quality fertilizers in right time and in adequate quantities with an objective to increase crop productivity. 2. To make plant energy efficient continually reviews various schemes to conserve energy. 3. Commitment to health, safety, environment and forestry development to enrich the quality community of life. 4. Commitment to social responsibilities for a strong social fabric. 5. To institutionalize core values and create a culture of team building, empowerment and innovation which would help incremental growth of employees and enable achievement of strategic objectives. 6. Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for stake holder. 7. Building a value organization with an improved and responsive customer focus. A true commitment to transparency accountability and integrity principle and practice.


8. Souring raw materials for production of phosphoric fertilizers at economical cost by entering into Joint Ventures outside India. 9. To ensure core and non- core sector. 10. A true Cooperative Society committed for fostering cooperative movement in the country.




IFFCO along with other joint partners is setting up an ammonia urea fertilizers project is OMAN with an annual capacity of 16.53 lakhs MT UREA and 2.5 lakhs MT AMMONIA. The project cost of US$ 969 million is being financed with DEBT: Equity Ratio of 2:1. Against the total equity of US$ 320 million IFFCO has contributed 25% equity amounting to US$ 80 million. Natural gas as feed stock for the plant will be supplied by the govt. of Oman under a long term gas supply agreement. The Govt. of India (GOI) will purchase the entire urea production from OMIFCO under a 15 year urea off take agreement .IFFCO will purchase the entire surplus Ammonia under 10 year Ammonia off take agreement. Implementation of the project commenced on August 15, 2002.The project is expected to be commissioned with in schedule and the commercial production is expected to start by 15 July 2005. We are happy to inform that trial production of Ammonia started on March 28, 2005 and of April 12, 2005.



In order to maintain the sustained pace of remarkable growth being achieved under the MISSION 2005, the Society is in the process of formulating another growth plan VISION 2010. The Fertilizer pricing policy environment in the country continues to be uncertain. In order to sustain growth and ensure adequate return to the member shareholders on the investment, IFFCO is exploring opportunities for diversification into other areas of profitable business apart from investments in the fertilizer sector. In its foray into other sectors, the Society strengthening cooperative infrastructure and cooperative system with overall - emphasis on strengthening Rural India. Accordingly, the following main objectives have been kept in view while formulating the VISION- 2010. 1. Attaining an annual turnover of Rs. 15000 crore by 2010; 2. Installation of Ammonia and Urea plants including acquisition of fertilizer units; 3. Backward integration to meet feed-stock requirements such as phosphoric Acid etc; 4. Generation of power; 5. Exploration / Distribution of Hydro-carbons; 6. Production and marketing of micro-nutrients, seeds, bio fertilizers, pesticides etc; 7. Value addition to Agro-products and marketing; 8. Manufacture of Petrochemicals; 9. .Banking and Financial Services; 10. Information Technology and IT enabled services.



Logo's ratio is 1:2:5 and the color is green. The rectangle shows that the Indian economy is depend upon the agriculture and green color shows the faith of the farmers, they believe that after using the urea their fields will always be green, the remaining white color shows that the quality of the IFFCO's product is very good and oval shape is meant for the wealth and prosperity. IFFCO's are four pants: 1. KALOL 2. KANDLA 3. PHULPUR 4. AONLA Having the capacity of the production of 4.7 million tones of fertilizers. IFFCO's all plant have been achieving the annual capacity utilization 21

in the range of 122-120% in the critical condition of the limited supply of the natural gas.


The ambitious FIRMS Package of IFFCO was formally launched on June 4, 2003 at New Delhi. In a simple but elegant function, the President of IFFCOs Employees Union, Mr. Bharadwaj, launched the software and reviewed one of the modules after entering his personal number and password. Mr. S.C. Mittal (General Manager, Management Services) gave an over view of the package and explained the usefulness of the package to the organization. Mr. Rakesh Kapoor (Finance Director) and Mr. S.K.Mishra (ED Personnel & Administration) occasion. The HRMS package is software of wide dimensions and touches almost all aspects of employee related activities. It consists of about 35 modules and provides an exhaustive MIS for managers at various levels for monitoring and also provides an elaborate Employee Information System (EIS) to update employees on information pertaining to them. Important modules include Payroll, Establishment, and Time Office, Medical Reimbursement, Provident Fund, Loans & Advances and a host of other modules that address all the requirements of all the employees of the Society. The launch of HRMS, in tandem with the IFFCOs Wide Area Network, heralds a new approach of wide ranging unified and integrated systems throughout the organization that can result in a boost to employee productivity and other dignitaries from Employees Union, Officers

Association, production units, marketing and corporate office graced the


Part - B



Aonla Unit



The IFCCO AONLA unit is located in genetic plants of Uttar Pradesh Bareilly district about 28 km. South-west in Bareilly-Badaun-Aonla road. It was set up on 08 January 1985 and started commercial urea production at 16 July 1988. The infrastructure of Aonla unit is very big and constructed on 713 acres of land. IFFCO AONLA unit is one of the most efficient and quality-wise as well as environment oriented unit so that M/s KPMG Peat Marwick, a quality registrar has certified it as ISO:9002 unit and M/s BVQI London has accredited it as ISO:14001 unit. The Aonla unit, Ammonia -Urea complex is comprised of the two phases:



AONLA-I was established in 1988 and it was digested to nation by honorable prime minister of India late SHRI RAJEEV GANDHI on 17 May 1989. AONLA-II was established in 1996 December. This unit was digested to nation by honorable prime minister of India SHRI I.K.GUJRAL on 28 January 1997. The total capacity of both the phases is 891000 million tones ad 145200 millions tones per annum of ammonia and urea respectively. There are two streams of ammonia and four streams of urea. The natural gas from H.B.J pipeline being supplied from Bombay highway is the feed for the plant. AONLA I was commenced on May 1988 and AONLA II were on December 1996. Both units are achieving the annual capacity utilization 116%.



The organization structure of IFFCO Aonla Unit is as follows:

Sr. General Manager Office:

SGM is the highest authority of Aonla Unit whose decision in the Concern is final. Presently; Mr. N. C. NIGAM is Sr. GENERAL MANAGER.

General Manager:
The GM is the next higher authority of Aonla Unit. He assists the Senior General Manager in taking all decisions.

Personnel & Administration Department:

The P&A Department is the heart of the organization. It is responsible for formulating policies and procedures in the matter of Personal and Administration as a whole. Under this all Personal functions like recruitment, training, welfare, time office, etc. and all Administrative functions like liveries, security, hospital, etc. are controlled.

Finance & Accounts Department:

It co-ordinates with all departments and complies the organization with all financial results such as Profit & Loss Account, Balance Sheet, Budgeting, etc.

Systems Department:
This department is responsible for consolidation and integration of database. Further, it provides services beyond the operation level requirements in application of material management, production reports, financial management and personnel management, etc.

Utility Department:
This department of Utilities controls the functioning of steel and power purification of water for recycling.

Production Department:


Under this department, the production and all related activities of production of ammonia and urea are carried on.

Maintenance Department:
Under this, the maintenance of all mechanical, electrical, telephone and mechanical services are controlled.

Organizational Chart at Aonla Unit Unit Head General Manager

Manager Finance

Manager Production



Manager Maintenance (HR) Marketing

Manager Personnel

Manager Administration



The following are the performance highlights of IFFCO:Production of Fertilizers Production of Urea Production of NPK/DAP Highest sale of fertilizers Profit before Tax Profit after Tax Turnover Plant Productivity Marketing Productivity 61.54 LAHK TONNES 37.14 LAKH TONNES 24.40 LAKH TONNES 64.64 LAKH TONNES Rs.470.92 CRORE Rs.319.64 CRORE Rs.7224 CRORE 1510 tone/head 4042 tone/head


Agricultural Extension and fertilizer use promotion programs as an integral part of the marketing activity. Programs are conducted at Area / State / Zonal Offices under the guidance of agricultural scientists. Programs undertaken are: Balanced fertilization programs Adoption of villages for all round socio-economic development Farmers visit to various agricultural institutes and research farms Farmers Meetings, Field Days and Crop Seminars Mobile Soil Testing Laboratories with Audio-Visual aids


IFFCO from its very inception has been alive to its responsibility of increasing the agricultural productivity through promotion of scientific farming among the farming community including balanced fertilization. IFFCO field staff use the whole range of methods such as field demonstration, farmers meeting, soil testing, crop seminars, field days, distribution of mini kits etc. to the weaker sections of the community for effective transfer of improved agricultural technology.


IFFCO has established about 200 Farmers Service Centers where all essential inputs like fertilizers, seeds, agro chemicals and guidance for their judicious use are provided under one roof. The agricultural implements like seed cum fertilizer drills, sprayers, dusters etc. are also provided to farmers on custom hiring basis. Considering their popularity among the farming community, IFFCO in collaboration with NCDC is presently engaged in developing 2500 co-operative societies on the pattern of IFFCO Farmers Services Centers.



To fulfill its objectives of serving the farming community, the society has drawn up a scheme of farmers integration under which the farmers from one part of the country are taken to another part in small groups. The objective is to expose them to modern agricultural heritage, social customs and lifestyle of different regions of the country and thus to achieve the objective of national integration.


In keeping pace with changing time, management information system has been given due status at Aonla Unit. The unit has a campus wide computer network using client-server technology. Fiber Optic Cable of about 7 Km length runs throughout the plant and forms the nerve system of network. All networking components like state of art switches and hubs have been provided by IBM The network comprises of 200 No of clients and- 5 No. of servers. Most of the clients are Pentium and Pentium MMX Computers. IBM Rs.6000 is the main server having AIX and Oracle 8.0 on it. Rest is Windows NT and Netware Servers. All functional areas of the Unit have been computerized. The network is connected to all Units, Head Office and Marketing Offices via satellite through NICNET. Lotus Notes 4.5 on Windows NT facilitates e-mail within and outside the country. Aonla Units own website has been placed on Internet so as to enable others to know about the success story of Aonla Unit.


IFFCO understands its responsibility towards the environment, therefore, to maintain the ecological balance, Zero Effluent Technology has been selected for its plants. The effluent from various plants undergoes extensive treatment and collected in lagoons from where it is used for irrigation of: the green belt. A large 80 meters wide green belt has been created around the plant. Some of the important environment management facilities provided are, deducting system disc-oil separator, hydrolyser, non-chromate cooling water treatment program and separate effluent treatment plant. The air quality is also monitored continuously. The environment parameters that are monitored are well below the MINAS and other pollution standards. The logons area has become natural habitat for the migratory birds during winter season and can excel as any picnic resort.

Quality Control
Being an ISO: 9002 Unit, IFFCO Aonla lays much emphasis on customer satisfaction through quality objectives. To meet its quality objective, a fullfledged laboratory has been established to monitor quality of production process at various stages round the clock and as well as the inputs and final product Urea.

Community Development
IFFCO being an institution is committed to work for the improvement of the socio economic conditions of rural population around the plant. Aonla Unit has adopted several villages under its village development scheme .Hand pumps, road construction, school building and other amenities have been provided in the surrounding villages. Medical camps, free distribution of medicines, polio and diphtheria vaccines, family planning and social marketing are the few activities undertaken in these villages. Subah Ladies Club of


township also plays active part in social welfare by running an education center for the education of poor children.

Human Resource Development

Employee development leads to the organizational development. IFFCO has grasped this fundamental truth. A fully functional Training and Development Section has been created to provide learning avenues to the employees. Most of the employees are recruited as trainees and then required to undergo extensive off-the job and on -the job training in various disciplines. Other managerial and developmental training is also arranged in -house as well as at the other prestigious institutions. The developmental activities do not end with employees but extended to the families also.

Fire and Safety

Safety and fire prevention bring the primary factor of well being of an organization. Therefore a well equipped fire and safety section has been established in addition to various in built safety features of the plants and their technology. Fire and Safety section has been provided with sophisticated and modern facilities like fire fighting tenders , rapid intervention vehicle , fire proof clothing , personal protective equipments , explosive meters, safety belts, air breathing apparatus , etc. To inculcate safety habit in each of the employee, various safety seminars, training and competitions are organized from time to time. A detailed on -site emergency plan has been developed and practiced at regular intervals to maintain preparedness to meet any eventuality.





Major Award Received




IFFCO Aonla Unit has won the NSCI Safety Award- 2002 ( PRASHANSA PATRA) from National safety Council of India. The awards committee under the Chairmanship of Shri Anil D. Ambani has declared the results of the NSCI safety awards for the year -2002. The achievement reflects the corporate culture on safety and health built assiduously with commitment and leadership from the top.

The award was presented by Shri Sushil Kumar Shinde , Hon'ble Chief Minister of Maharashtra at a function held at 10.00 AM on 27th December, 2003 at Walchand Hirachand Hall ( 4th floor) , Indian Merchants Chamber , LNM IMC Building , Churchgate, Mumbai. Shri Anil D. Ambani , Chairman NSC presided over the function.

The award was jointly received by Sh. V.K.Bali , Sr. Executive Director(Technical) and Shri H.C.Dave , Sr. General Manager, Aonla Unit.

Above : Shri V.K.Bali , Sr.Executive Director(Tech.)-IFFCO & Shri H.C.Dave , Sr.General Manager, Aonla receiving the award from Shri Sushil Kumar Shinde , Chief Minister Maharashtra .


Seven Awards for overall, performance from FAI. Two Awards for Industrial safety from GOI. Award for Technical Innovation from FAI. Two Raj Bhasha Shields for performing Hindi. Award for Safety from National safety Council, Chicago. Indo German Greentech Environment Excellence Award.

Four Awards for Productivity from NPC. Six National Safety Awards from GOI. Two awards for Overall Performance from FAI. Two awards for Technical innovation from FAI. Three National Energy Conservation Awards. Three Awards for best Environment Protection from FAI. Best Environment Excellence Award from Indo-German Greentech Foundation. Best technical Paper award by FAI.

Twelve safety Award from National Safety Council, Bombay GOI. Twenty three Safety Awards from Gujarat Safety Council, Baroda. Nineteen Awards for Safety from National Safety Council, USA. Letter of Appreciation from CEB for Energy Conservation. Raj Bhasha Award for Promoting Hindi. Six Awards for Overall Performance from FAI. 38

Three awards for Best Display in FAI Exhibitions. Two awards for Highly Commendable Accounts. Award in Appreciation of Initiative in Family Planning. Awards for Best House Journal.


Aonla Project Mechanical completion achieved within 36 months from zero date. Commissioning of Ammonia Plant within 36 days from the process feed cut-in into primary reformer. Commencement of commercial production in just 42 month from Zero date inspire of delay in supply of natural gas by M/s GAIL and C02 compressors by M/s BHEL. Implementation of Aonla Project has been taken as modal for future projects by Govt. of India. IFFCO has bagged two prestigious National Awards- One for best project implementation. (Second prize) by Ministry of Program Implementation, Govt. of India and other for technical film new horizons- Aonla project (Second prize) by FAI. ASCI, Hyderabad have adopted implementation of Aonla project as a model case study for there general management level courses. The consumption of energy per tone of Urea produced at Aonla has been record lowest in Indian fertilizer industries. The project was implemented with a saving of Rs. 30 Crore from the original estimate of Rs.696 Crore. Doordarshan, Lucknow and Delhi in its National Network presented the story of the Aonla project highlighting project completion and its other social activities.


Development of 50 meter inside green belt around the factory to keep the environment cleans. National Energy Conservation Award 1995 (first prize) in the Fertilizer Sector by Ministry of Power, Govt. of India. Certificate of Merit from NPC for performance in the year 1993-1994.


IFFCO Aonla Unit is a natural gas based fertilizer plant set up on Hazeera Beejpur- Jagdishpur (HBJ) Pipeline. This pipeline is running through four states and has become very old there by posing a threat for the IFFCO Aonla Unit. The IFFCO Phulpur Unit is a non- gas based plant running on Naphtha and Coal. The problem faced by it is that the cost of Naphtha is very high thus increasing the cost of production. The IFFCO Aonla Unit is a subsidized organization but the Government of India is trying to finish this subsidy as soon as possible. The Aonla Unit is also facing a problem of shortage of gas; therefore, the cost of production is growing higher.


Part C


Person al


The Personnel department is concerned with people at work and with their relationships with each other. It may be defined as a set of programs, functions, and activities designed to maximize both personal and organizational goals. It ensures that the organization attracts and hires qualified, imaginative and competent people. It involves the establishment of various policies to deal with employees and to retain them. To this end, it lays rules regarding working conditions, designs appropriate compensation plans, and strengthens employer-employee relations.

The primary functions of the personnel department are:

1) Organizational planning and development. 2) Staffing and development. 3) Training and development. 4) Compensation, Wages and Salary administration. 5) Motivation and incentives. 6) Employee services and benefits. 7) Employee records. 8) Labor and IR. 9) Personnel Research and personnel audit. 10) It is responsible for initiating and evolving sound personal procedures and practices. 11) It is responsible for laying uniform service conditions for all the employees. 12) It hold periodic meetings and discussions with representative of all recognized unions for resolving issues of company wise nature and inter in to agreement in respect of wages and allowances and allied matters. policies,


Organizations Structure of P&A Deptt.

Executive Director (Head Office) J G M (P&A) Chief Manager Senior Manager Deputy Manager Senior Personnel/Senior Administrative Officer Personnel Officer/Administrative Officer Jr. Personnel Officer/Jr. Administrative Officer Sr. Assistant Jr. Assistant


Various section under personnel Department at IFFCO

HRD CELL The cells have been created at divisional levels to ensure effective implementation of HRD plan with special emphasis on Identification of development needs and preparing manpower for future needs. It carries out following activities: a) Recruitment: For recruitment and selection both internal as well as external sources are used. b) Internal recruitment: Lower grade employees are promoted to higher grades according to the eligibility criterion. c) External Sources: No agencies are hired. Vacancies are notified in employment Exchange, advertisement in News paper in also given. Usually, external recruitment is resorted only when internal sources dry up. 2) Selection: After screening of application suitable applications are called for psychological, personality physical tests and interview. Selection is done by a selection committee. It consists of Head of concerned Department, Specialist and member from Personal Department. 3) Training: Most of the employees are recruited as trainees and then required to undergo extensive off the job and on the job training in various disciplines.

Posting and Transfers:

Regardless of the post to which an employee is initially appointed and the station where he is posted. IFFCO reserves the right to transfer him from one post to another equivalent post and from one station to another, anywhere in India or abroad.

IFFCO has a fixed and written promotion policy which is based on both seniority and merit. Usually it is based on both qualification as well as cadre.


Termination :
An employees service may be terminated at any time on one months (but not less than 30 days) notice on either side or by the emp1oye.

Industrial Relation :
The organization has set up healthy traditions in encouraging and fostering cordial and, harmonious industrial relations in dealing with employees.

The main functions of IR section are as follows:

1) Compliance of statutory provisions. 2) Dealing with unions. 3) Participate Dispute.

This sections deals with various welfare activities. (Like sport and cultural programmed for employees, Canteen facility etc.)

Time office:
Keep track of employee attendance. Employees are given electronic cards which are to be electronically punched at the time of entering or leaving the office.

Provident fund :
IFFCO has its Own Board of Employees Provident fund as per EPF and misc. Provisions. Act, 1952 and PF benefits shall be as IFFCO EPF rules.

Retirement and super annotation shall be at the age of 60 years.


Various Section Under Administration Department:

Estate Office:
Takes care of sanitation of plant and township, allotment of houses, shops etc. Administration department also take care of indirect facilities like medical, HBL, libraries etc.

Looks after the plantation in the whole IFFCO Unit including township.

Guest house:
Proper maintenance of guest house is required for accommodation facility to people like contractors, trainees etc.

Takes care of sanitation of plant and township.

Takes care of proper running of transport facility provided to the employees.

General Administration:
It takes care of other things such as furniture and fixtures, stationery, stock and non stock items.

Attention is paid by Administration department for proper running of hospital, responsible for appointment of doctors and hiring specialists.


Part Empl D oyee Welfa



Employee or labour welfare is a comprehensive term including various services, benefits and facilities offered to employees by the employer. Through such generous fringe benefits the employer makes life worth living for employees. The welfare amenities are extended in addition to normal wages and other economic rewards available to employees as per the legal provisions. According to Dr Parandikar, Labour welfare work is work for improving the health, safety and general well being and the industrial efficiency of the workers beyond the minimum standard laid down by labour legislation. Welfare measures may also be provided by the government, trade unions and non-government agencies in addition to the employer. The basic purpose of labour welfare is to enrich the life of employees and keep them happy and contented. Welfare measures may be both statutory and voluntary Labour laws require the employer to extend certain benefits to employees in addition to wages. Voluntary benefits are the result of employers generosity, enlightenment and philanthropic feelings.


The Labour Investigation Committee : Anything done for intellectual, physical, moral and economic betterment of the workers, whether by employers, by government or by other agencies over and above what is laid down by law, or what is normally expected on the part of the contracted benefits for which workers may have bargained. 49

The Committee on Labour Welfare:

Today, welfare is generally accepted by employers. The state steps in to widen the area of applicability only. Welfare is being looked at as a social right of workers. The committee described it as social security measures that contribute to improve the conditions under which workers are employed in India. (1969 Report). Labour we includes both statutory as well as nonstatutory activities under taken by employers, trade unions and both the central and state governments for the physical and mental development of workers.

The significance of welfare measures was accepted as early as 1931, when the Royal Commission on Labour stated: The benefits are of great importance to the worker which he is unable to secure by him. The schemes of labour welfare may be regarded as a wise investment because these would bring a profitable return in the form of greater efficiency. The working environment in a factory adversely affects the health of employees because of excessive heat or cold, noise, fumes, dust and lack of sanitation and pure air. Such oppressive conditions create health problems for workers. These have to be contained through preventive st.eps aimed at improving the lot of workers. A second reason in favors of welfare work is called the social invasion of the factory. Workers face lots of adjustment problems when they take up factory work. The congested environs, noisy machines, slum areas, monotonous jobs impact the psyche of realities who come to cities in search of jobs. To escape from such trying conditions, the worker absents himself, becomes irregular and shows signs of indiscipline. Such changes known as the social invasion of the factory call for extra inducements in the workplace in addition to normal wages, so that the worker begins to enjoy a fuller and richer life.


Another social reason pointed out by the Labour Investigation Committee reads thus: the provision of canteens improves the physique; entertainment reduces the incidence of vices; medical aid, maternity and child welfare services improve the health of the workers and bring down the rates of general, maternal and infantile mortality; and educational facilities increase their mental efficiency and economic productivity.

Labour welfare work, thus, serves the following purposes:

Enables workers to have a richer and more satisfying life. Raises the standard of living of the workers by indirectly reducing the burden on their pocket. Welfare measures will improve the physical and psychological health of employees, which in turn, will enhance their efficiency and productivity. Absorbs the shocks injected by industrialization and urbanization on workers. Promotes a sense of belonging among workers, preventing them from resorting to unhealthy practices like absenteeism, labour turnover, strike, etc. Welfare work makes the service in mills more attractive to workers. It improves the relations between employers and employees. It promotes a real change of heart and a change of outlook on the part of both the employers and employees. Prevents social evils like drinking, gambling, prostitution, etc., by improving the material, social and cultural conditions of work. Congenial environment as a result of welfare measures will act as a deterrent against such social evils.


The meaning of labor welfare may be made clearer by listing the activities and facilities which are referred to as welfare measures. A comprehensive list of welfare activities is given by Marty in his monumental work of labor welfare he divide welfare measures into two broad groups, namely


1. Welfare measures inside the work place; and 2. Welfare measures outside the work place. Each group include several activities.

1. Welfare Measures inside the work place

a) Conditions of the Work Environment. b) Conveniences. c) Workers Health Services. d) Women and Child Welfare. e) Workers Recreation. f) Employment Follow-up. g) Economic Services. h) Labor- Management Participation. i) Workers Education.

2. Welfare Measures outside the Work Place

a) Housing: bachelors quarters; family residences according to types and rooms. b) Water, Sanitation, Waste disposal. . c) Roads, lighting, parks, recreation, Playgrounds. d) Schools: nursery, primary, secondary and high school. e) Markets, Co-operatives, consumer and credit societies. f) Bank. g) Transport. h) Communication: post, telegraph and telephone. i) Health and medical services: dispensary, emergency ward, out patient and in-patient care, visiting; family planning.

j) Recreation: games; clubs; craft centers; cultural programmes, that is, music clubs; interest and hobby circles; reading room and library; open air theatre; swimming pool; athletics, gymnasia. k) Watch and ward; security. 52

l) Community leadership development: council of elders; committee of representatives; administrative of community services and problem; child, youth and womens clubs.

Welfare facilities may also be categorized

a) Intra-mural b) Extra-mural.

Welfare Facilities by the government

With a view to making it mandatory for employers, to provide certain welfare facilities for We their employees, the government of India has enacted several laws from time to time. These laws are the factories Act, 1948; the Plantation labor Act, 1951; the Bidi and Cigar Workers (Conditions of Employment) Act,1996; and the Contact Labor (Regulation and Abolition) Act, 1970. Another significant step taken by the central government has been to constitute welfare funds for the benefit of the employees. These funds have been established in coal, mica, iron-ore, limestone, and dolomite mines. The welfare activities covered by these funds include housing, medical, educational and recreational facilities for and their dependents.

Welfare activities may also be defined as: 1) Statutory Provisions;

These are mandated by the factories Act, 1948; The Mines Act, 1952; The plantation Labor Act, 1951 and same other acts of all there, the factories act is significant.

2) Non statutory Provisions:


Non statutory benefits, also called voluntary benefits include loans for house building, education of children leave travel concession, fair price shops, loans for purchasing personal conveyance and a host of other facilities The Indian factories Act, 1948 is a comprehensive place of legislation covering all the aspects regarding the factories Under the rule making power practically all the states have framed their rules and regulations there by ensuring maximum advantages. The act was first conceived in 1881 when legislation was enacted to protect children and to provide health and safety measures later, hours of work were sought to be regulated and were therefore, incorporated in the Act in 1911. The Act was amended and enlarged in 1934 following the recommendations of the Royal Commission of labor A more comprehensive legislation to regulate working conditions replaced the Act in 1948.




Welfare (Sections 42 to 52)
Chapter V of the Act contains provisions for welfare measures for the workers. The whole of the chapter containing sections to the long desired provisions of uniform standard of welfare order for industrial labor. a) Washing facilities (S.42) b) Facilities for storing and dry clothing (S.43) c) Sitting facilities for occasional rest for workers who are obliged to work standing (s.44) d) First aid appliances (like first aid owes or cupboards) one for every 150 workers and ambulance facilities, if there are more than 500 workers (S.45) e) Canteens if employing more man 250 workers (S.46). f) Shelters, rest rooms and lunch rooms, if employing over 150 workers (S.47) . g) Crche if employing more man 30 women (S.48). h) Welfare officer, if employing 500 or more workers (S.49).


Part E


Empl oyee Welfa












establishment such as latrines and urinals, crches, rest centers, canteens, uniforms, library, medical aids, subsidized food, shift allowances etc. The following are the welfare activities provided inside the work place at IFFCO:-

a) Safety:
For the purpose of neighborhood safety and safety of the plant there are mainly three types of securities at IFFCO. I. CISF( Central industrial Security force): appointed by Govt. II. IFFCO security. III. Security on contract basis To take care of the cleanliness of the work place there is a separate sanitation department (under Administration Department).

b) The various other functions such as House keeping: upkeeping of premises- Compound Wall, Lawns, gardens and saffron, passages; With-washing. Etc. are taken care by Estate office and Horticulture Department Separately according to the nature of the job.

c) Sanitation and cleanliness:

At IFFCO proper attention is paid to the Workshop (room) sanitation and cleanness. Proper attention is paid accusation of dust (and refuse) and is removed daily by sweeping or by other effective means.

At IFFCO there is Provision for adequate ventilation by circulation of fresh air.

Elimination of dust, fumes, smoke and gases:


At IFFCO effective measures are adopted to clean the dust and fume from the workroom. The fumes are discharged at a height of 96 meters and the content of NH3 and Urea in it is a low as 6 ppm.

At IFFCO the humidity of the air is not artificially increased during the manufacturing process.

At IFFCO there is 15 cubic meter space for every worker thus no overcrowding.

At IFFCO there is sufficient and suitable lighting artificial or natural provided and maintained at every part of a factory.

d) Control of effluents:
IFFCO understand its responsibility forwards the environment. The effluent from various plants undergoes extensive treatment in Effluent Treatment Plant (etv) and this water is then used for irrigation.

e) Sitting arrangement:
At IFFCO there is suitable arrangement for sitting and proper attention is paid to the convenience and comfort of workers , there are shelters restrooms and lunchrooms for the same purpose.

(f) Work mens Safety measures:

At IFFCO there is proper maintenance of machines and tools used. To provide protection against dangerous fumes and gases (Which can be used up to 35 minutes) workers are provided with breathing apparatus, safety helmet, earplugs or muffs , Goggles, Dust mask, hand gloves to avoid any sort of inhalation. Further there is a huge vacuum cleaner and high rotation fans to remove accumulated from workshop or from clothes of workers respectively.


For the employee working in Ammonia Plant, Ammonia Suit is provided to product them. Detectors are there in the plant to detect leakage of Ammonia and Hydrogen. Pressure relive Valves are there to excess pressure if any machinery. All electric equipments are earned to prevent any shock. IFFCO has trained male workers for examination of the machinerys Further employees are not allowed to wear loose clothing and are instructed to wear shoes while working. IFFCO employees no young person work as dangerous machines unless he is fully trained or under adequate supervision, there is no women worker in plants. In IFFCO proper attention is paid to fencing of machines: There is a safeguard (Pu11 guards, coupling guards etc.) On every moving part of a prime mover, every part of electric generator or motors, rotators converter, every dangerous part of any other machinery.

(g) Information or Communication:

There are amble notice Board, Posters, Pictures, Slogans for proving information throughout the plant and in township as well. There is also communication facility via communication channels (inside plants & control rooms) through which workers and engineers can communicate with each other easily when required.

(h)Working hours:
In IFFCO the working hours (in general shifts) are from 8:15 to 17:30, the lunch time is from 12:30 to 13:00 On Saturdays the working hours are from 8:15 to 12:30 only. Thus no worker works more than 48 hours in a week.

In IFFCO there are four shifts in which workers are working the timing of the shifts are as follows; 61

Shift A Shift B Shift C

06:00 to 14:00 14:00 to 22:00 22:00 to 06:00 08:15 to 17: 30

Shift G (General)

In IFFCO there is provision for intervals for rest of about 30 minutes they can also take occasional break if required.

Extra wages for Overtime: In IFFCO workers are paid for overtime at
twice the existing rate of wages. The officers are given compensatory off for working overtime.

i) Conveniences urinals and lavatories:

Sufficient lavatories and urinal accommodation (Separate for male and female workers) of prescribed type and conveniently situated and accessible to workers at all time while they are at factory. There are bathrooms, waste disposal baskets, spittoons, washbasins in a sufficient number at convenient places and are maintained in a clean and hygienic condition.

j) Drinking Water: there is sufficient number of water coolers in the

plant situated at convenient places.

k) Canteen: In IFFCO the canteen is established near the main gate of the
factory. It provides tea, snacks and meals at very reasonable rates to the employees.

l) There are shelters, cloak rooms, rest rooms, reading rooms. There is library
(both at the plant and in the township) for the employees. Worker like urinals, rest rooms etc. in the plant as there are no Women worker in the plant.

m) Employment follow up: in IFFCO progress of the employee

Problems with regard to workload, Supervisors and colleagues in Taken care by P & A Department via grievance handling etc.


n) Economic Services: In IFFCO there, are suitable, welfare schemes

regarding health insurance, rewards and incentives, and gratuity and pension, workmens compensation for injury, family assistance in times of need, profit and bonus sharing schemes etc.







management is encouraged by formation and working of various committees like workers committees, safety committee, canteen committee etc.

p) Workers Education: in IFFCO stress is given to enhance the

workers education this is done via reading room library, social education, seminars, factory news review, magazines etc.

q) Washing facility: In IFFCO there is adequate and suitable facilities for

washing for the use of the workers employed there in. They are kept clean and hygienic.

r) Fire and Safety: A well equipped, fire , and safety section has been in
addition to various built in safety features of plan and technology. To include safety habit in each employee various safety seminars, training and competitions are organized from time to time.

Labor Welfare Officer:

Schedule of the act provides that in Every factory where in 500 or more workers are ordinarily employed, The employer shall appoint at least one welfare officer. The officer is expected to act as an advisor, counselor, mediator and Liaoning. Officer between the management and the labour Specifically his/her duties include the following: For the same purpose IFFCO has appointed a welfare officer Mr. Jeetendra Bhardwaj who acts as an advisor, counselor, mediator and Liaoning Officer between the management and the lobour. 1. Supervision of safety, healthy and welfare programmes (i) Like housing, recreation and sanitation services. (ii)Working of joints committees. (iii)Grant of leave with wages. (iv)Redressed of workers grievances. 63

2. Counseling workers in (i) Personal and family problems. (ii)Adjustment to their work environment. (iii)Understanding their rights and privileges. 3. Advising management in matters of (i)Formulating welfare policies. (ii)Apprenticeship training programmers. (iii)Complying with statutory obligation to workers. (iv) Developing fringe benefits. (v) Workers education. 4. Liaoning with workers so that they may (i)Appreciate the need for harmonious industrial relations in the plant; (ii)Resolve disputes, If any; (iii)Understand the limitations under which they operate. (iv) Interpret company policies correctly. 5. Liaoning with the management so as to apprise the latter about workers viewpoints on organizational matters.


IFFCO township spread over an area of 500 acres having 1085 houses In situated on Bareilly Aonla road in front of factory. It provides all modern facilities, amenities and recreational aspects to all the employees residing in the township. The township is well maintained with planned row of houses, lush green lawns, trees parks and wide roads. It has its own shopping Center, hospital, recreation club, cable T V community centre, open air theatre, swimming pool, stadium, temple and school(one central school and play school) for the children of the employees.

Waste disposal: The effluent from various plants undergo extensive

treatment in lagoons from where they are used for irrigation of the green belt. The logons area has become natural habitat for the migratory birds During winter season and excel as any picnic resort.

Community Development: IFFCO being an institution is Committed to

work for the improvement of the socio economic conditions of rural population around the plant. Aonla unit has adopted several villages under its village Development scheme. Hand pumps, road construction, school building amenities have been provided in the surrounding villages. Medical camps, Free distribution of medicines, polio and diphmeria vaccines, Family planning and social marketing are the few activities undertaken in these village. Subah ladies club of township also plays an active role in Social welfare by running an education centre for poor people. Farmers service centre has been established in village sainda near Aonla unit which provide fertilizers, pesticides and seeds to the farmers. For the same purpose a project Strengthen Reproductive Health and family Planning Services in Alampur Zafrabad Block of Bareilly District is being implemented by IFFCO Jan Kalyan Samiti. It is funded by USAID - India and IFFCO Aonla named SIFPSA. 65

(States Innovation in Family Planning Services Project Agency, India) To assesses efficiencies of services of reproductive and child health and primary health care being provided by this project in a Population of 1,70, 000. 65 Community based education and distribution workers who are either from the same or nearly by village are provided: A. Preventive, primitive, rehabilitative services and methods of fly planning. B. Education and Counseling. C. Clinical Services like tubectomy, deliveries etc. D. Free pies, iron and folic acid tablets are also given. Under this project problems of primary healthcare, family planning, Material health etc, are solved up to a great extent.



Loan has been granted to the employees of IFFCO after confirmation. The condition for the same is as follow:

Motor Cars

Motor cycle/ scooter

Auto Vehicle (moped) of less than 1


Amount of Advance

Actual of 800 chever less to

HP cost Rs. 40,000 for Rs.

20,000 Rs. the



are 90% cost motor cycle & or maruti Rs. 30,000 for months cc scooter is pay or

10 actual cost of bicycle is

24 basic pay or whichever least. or cost of auto

(ordinary)whi months

basic anticipated

limited anticipated cost vehicle Rs. of motor cycle (moped), & scooter whichever is is least. in Employees and above equal 60 Employees above equal in whichever



least. Employees in Employees grade and above G1 grade above L1

and in grade N grade N and

Period Recovery

of 108

equal 72 monthly

equal 30 monthly

monthly installments.

monthly installments .




House Building Loan (HBL)

1. The advance is granted to employees of IFFCO who have regularly been appointed to the service of IFFCO and have completed three Years of service.

2. HBL may be granted for:

a) Purchase of Plot / Land. b) To buy Flats. c) For construction of house. d) For maintenance. 3. The maximum amount of loan granted should not exceed Rs. 5,00,000. 4. The quantum of loan will be such that carry home pay after Deduction of loan installation shall not be less than 50% of Gross Salary or Rs.4000 (Whoever is less).

Medical Benefits
1) An employee of IFFCO is in respect of any ailment, disease, injury or disability, befalling him or any dependent number of his family be eligible for reimbursement or medical expenses, subject to such Limits :i) Fees paid by him to an Authorized Medical Attendant for Consolation (at his clinic or at employees residence). ii) Fees paid to injection, dressings or minor surgery. iii) The cost of medicines or Pharmaceuticals necessary for treatment . iv) The fees paid for pathological, bacteriological, radiological or other examination. 2). The reimbursement shall not exceed the annual ceiling as under.


Number of family members Ceiling (Including himself) For 2 family members. For 3 family members above the




employee Treatment (per annum)

Rs. 2250/Rs. 4500/-

IFFCO provides Transport facilities to all its employees to move from one place to another so that they can work more efficiently.

There are three categories of Vehicles:

a) Buses. b) Light Vehicle. c) IFFCO Vehicle.

1) Buses : A total number of buses is 13 (on contract basis). Out of which

12 buses are used to carry main and material from IFFCO Township to Bareilly and Vice Versa.

These buses are use for three purposes:

a) Shift b) Marketing c) Schools buses Out of 13 buses one bus is used for traveling between township to Delhi and Vice-versa (This bus runs on alternate days i.e. on Monday, Wednesday & Friday.

2) IFFCO Vehicle
IFFCO also Owns a certain numbers of Vehicle itself. These are as Follows :

Swaraj Mazda Truck Minibus -1 -1


IFFCO company cars are allotted to JGM and above grade. 69

Concl usion


Employee welfare is a systematic and objective way of increasing the efficiency and effectiveness of the employees. It is an important aspect of factory life. The added incentives enables the workers to lead a decent life in the midst of urban congestion, rising inflation and poor living condition. The welfare measures include services, facilities and amenities extended for the intellectual, physical, moral and economic betterment of workers. It is a wise investment that helps a firm attract, motivate and retain people both in times of prosperity and adversity. In IFFCO proper attention and care has been taken for the welfare of employees and employees here are very satisfied. It is probably because of this reason that IFFCO has emerged as a pioneer organization, the field of Co- operatives and is the leading producer of fertilizers. The welfare measures at IFFCO whether inside the work place or outside the work place, extramural or intramural welfare facilities are in compliance with the Factories Act. IFFCO has been doing a great job in recognizing the unique place of the worker in the society and doing well for retaining and motivating employees.


In short IFFCO has been providing its employees the circle of care as shown below:

Early recognition Avoidance of and treatment of Stigma and illness, Discrimination, Medical Care, Full Social, Psychological, Participation, Support, Human Rights, Hospitalization, Social support, Families. Skills for care, Education, Vocational Support, Financial Support, Day care, networking with Long-term care


Biblio graph



C.B.GUPTA (Human Resource Management)

V.S.P RAO (Human Resource Management)

P.C. TRIPATHI (Personnel Management)