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Introduction

INTRODUCTION TO HUMAN RESOURSE


MANAGEMENT: -
Human resources plays vital role in modern economic scenario of any
country. Fast global and technological development have made today’s
business environment highly uncertain and chaotic. Organizations are
seeking newer ways to promote their adoptability to the complexities of
changed scenario so as to survive and proper. Globally, organizations
are striving to realize sources through strategic management of human
resources. Human beings working in the organization are very
important for the success of any organization, because they are the
living resources and other resources are dead in nature like machine,
material and money. Therefore now a day much more attention is
required towards continuous development of human resources. All the
great achievement and success can be possible by the enlightened
manager in modern organization with the application of human resource
development techniques.

In an industry and organization, the employer and employees are two

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wheel of a progressive organizational vehicle which relates to human


resource and industrial relation practice in an organization. Today,
business growth is very complex and dynamic. In today’s world
business has to face with a number of challenges. The important area
like market, technology, composition work force, attitude & expectation
of people are changing very rapidly. Due to all these factors, an
organization has to take a fresh look at their different functional areas to
modify & improve the kind & style of management so as to reach its
goal easily. There has to be continuously & effectively modification in
the management policies & practices. Human resource management is a
part and parcel of the corporate management; it is entrusted with the
areas of management such as recruitment, placement, training and
development, job description, performance appraisal, management
development, wage and salary administration, motivation safety,
medical care, industrial relation and collective bargaining and to draw a
sound personnel policy. Organizations are made up the people and
function through people. Without people, organization can’t exit. The
resource of men, money, materials and machinery are collected,
coordinated and utilized through people. The resources by themselves
can’t fulfill the objectives of the organization. They need to be united
into a team. It is through the combined efforts of people that material
and monetary resources are effectively utilized for the attainment of
common objectives. Without united human effort no organization can
achieve its goal. All the activities of an organization are initiated and
completed by the human resources management.

According to Warwick “business houses are made or broken in the long


run not by market or capital or equipment but by men.” It implies that
of all our resources manpower is the only resource, which does not

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depreciate with the passage of time. Today “labor” in the front page
news throughout the world”.

So people have always been central to organization but their strategic


importance is increasing in today’s knowledge-based industries. In the
Indian scenario, HRM is developing fast due to many reasons.
Multinational corporations are resorting to Human Resources Practices.
Now states are interested in encouraging a large-scale use of HRM
interventions to build organizational culture; conducive to efficiency &
productivity. When the people are properly motivated, even ordinary
people can deliver extraordinary results. From an organizational
standpoint, good HR practices help in attracting and retaining talent,
train people for challenging role, develop their skills and competencies,
increase productivity and profit and enhance standard of living. As a
whole, best management of human resource is essential of growth and
prosperity of the organization.

OBJECTIVES OF HRM:
The principal objectives of HRM may be listed thus:
(a) To help the organization to reach its goal:

HR department, like other organization, exists to achieve the


goal of the organization first and if it does not meet this purpose,
HR department (or for that matter any other unit) will wither and
die.

(b) To employ the skills and abilities of the workforce


efficiently:

The primary purpose of HRM is to make people’s strength is


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productive and to benefit customer, stockholders and employee.

(c) To provide the organization with well trained and well


motivated employees:

HRM requires that employees be motivated to exert their


maximum efforts, that their performance can be evaluated
properly for results and they be remunerated on the basis of their
contribution to the organization.

(d) To develop and maintain a quality of work life:

It makes employment in the organization a desirable, personal


and social situation. Without improvement in the quality of work
life, it is difficult to improve organizational performance.

(e) To communicate HR policies to all employees:

It is the responsibility of HRM to communicate in the fullest


possible sense; tapping ideas, opinions and feeling the
customers, non-customers, regulators and other external public
as well as understanding the views of internal human resources.

(f) To be ethically and socially responsive to the needs of


society:

HRM must ensure that organizations manage human resource in


an ethical and socially responsible manner through ensuring
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compliance with legal and ethical standards.

IMPORTANCE OF HRM:
People have always been central to organizations, but their strategic
importance is growing in today’s knowledge based industries. An
organization’s success increasingly depends on the knowledge, skill and
abilities (KSA) of employees, particularly as they help establish a set of
core competencies that distinguish an organization from its competitors.
With appropriate HR policies and practices an organization can hire,
develop and utilize best brains in the market place, realize its professed
goals and deliver results better than others.

SCOPE OF HRM:

The scope of HRM is very wide. Research in behavioral sciences, new


trends in managing knowledge workers and advances in the field of
training have expanded the scope of HR function in recent years. The
Indian Institute of Personnel Management has specified the scope of
HRM thus:

PERSONNEL ASPECTS: This is concerned with manpower


planning, recruitment, selection, placement, transfer, promotion,
training and development, lay off and retrenchment, remuneration,
incentives, productivity, etc.

WELFARE ASPECTS: It deals with working conditions and


amenities such as canteens, creches, rest and lunch rooms, housing,
transport, medical assistance, education, health and safety, recreation
facilities, etc.
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INDUSTRIAL RELATION ASPECTS: This covers union-


management relations, joint consultation, collective bargaining,
grievance and disciplinary procedures, settlement of disputes, etc.

@@@@@

COMPANY PROFILE

A jewel in the crown

NOW A NAVARATNA COMPANY


With a consistent track record in capacity utilization,
technology absorption, quality assurance, export performance and
committed manpower, with excellent teamwork NALCO has emerged
as India’s leading Aluminium Company. NALCO has been contributing
significantly to the State and Central Government exchequers over the
years through increased production and consistent posting of profits.
With its second phase expansion, involving an investment of over
Rs.5000 crore which is nearing completion, the company is all set for
third phase expansion. Besides, plans are afoot for Greenfield projects
in countries like Indonesia, South Africa and Iran.

With time, all these remarkable achievements have translated


into another creditable title for NALCO, now a Navaratna Company
from 28th April 2008.

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NALCO presents its special gratitude to the Government of


India and Orissa for their continuous support and guidance through 28
yearlong journeys.

The vision to be a reputed global Company in the Metals and


Energy sectors is not far off.

1.1 DETAIL BACKGROUND OF NALCO:


Following the discovery of large reserves of Bauxite ore in the
east coast and the preliminary project work done by Bharat Aluminium
Company Limited, NATIONAL ALUMINIUM COMPANY LIMITED
was set up as a Public sector enterprise under Ministry of Mines by the
Government of India in 1981 to implement one of the largest multi-
locational integrated Aluminium projects of the world with its own
Captive Power Plant and Port Facilities. The technical collaboration of
Aluminium Pechiney of France, the support of Euro-dollar loan from a
consortium of International Banks and the special dispensations of the
Government of India and the Govt. of Orissa helped to implement the
project expeditiously within the budgeted cost of Rs.2408 crore.

In order to strengthen its business and increase market share,


NALCO has been pursuing expansion programmes on a sustained basis.
The first phase expansion was taken up in the year 2002 involving fresh
investment of 3900 crore. NALCO has taken over International
Aluminium Products Ltd. (IAPL), a wholly owned subsidiary of
NALCO w.e.f. March 2000 with the project cost of Rs.385 Crores
having capacity of 50,000 TPY of aluminium alloy coils sheets.

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Soon after the completion of the first phase expansion, the


company has launched its second phase expansion, commencing in
October 2004, which involves fresh investment of more than Rs 5000
crore. The project is nearing completion. The company is now planning
3rd phase expansion with an investment of Rs 6000 crore, which will
increase its production capacity.

1.2 PLANT LOCATION:

While the Corporate headquarters of your Company is located


at Bhubaneswar, the capital city of Orissa, its mining operation and the
manufacturing units are located at Damanjodi and Angul. Damanjodi, in
Koraput district of Orissa, is 550 km. By road to south of Bhubaneswar.
Angul is 160 km. From Bhubaneswar on north. It may be useful for you
to get some general information on Damanjodi and Angul which are the
main centers of your Company’s activities.

Damanjodi :

Introducing Koraput, the Gazetter of India writes: “Koraput


with the rolling mountains, undulating meadows, roaring rapids,
enchanting waterfalls and terraced valleys leading up to verdant hills,
feasts the eye as few other districts can. Koraput with her golden
autumn and misty mornings of the monsoon months, her painted spring
and slumbering summer and her writer ranging from fierce to mild,
provides varieties of living in different seasons, which is rare elsewhere.
Here in Spring, nature and men vie with each other to make living

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joyous”.

Damanjodi, where Nalco has established its Alumina Refinery


and a township, is one of the picturesque valleys of this beautiful
district, on the foothills of Panchapatamali hills. The plateau of
Panchapatmali, where the Bauxite mine of Nalco is located is connected
by a 16 km. long uphill road. Damanjodi is 12 km. from Simliguda, a
small town located on the National Highway No.43, that connects
Vajayanagaram of Andhra Pradesh with Raipur of Madhya Pradesh.
The Sunabeda township of Hindustan Aeronautics Limited is 18 km.
from Damanjodi. Koraput town, the Headquarter of district, is 36 km.
from Damanjodi. The nearest rail station at Vijayanagaram is at a
distance of 135 km. There is of course a passenger rail service from
Koraput to Visakhapatnam through the most enchanting hilly terrains of
Araku valley and Anantagiri. Damanjodi is also connected by bus
service from Berhampur, Cuttack, Bhubaneswar, Angul and
Sambalpur. The native population of Damanjodi mostly consists of
tribals. The important tribes in this area are Gadaba, Paraja, Kandha,
Koya & Sunki. The traditional occupation of the local population has
been cultivation and allied agricultural activities. Tribals here live a
simple and poverty stricken life, deeply rooted to their primitive
customs and traditions. The month long celebration of Chaitra Parva in
April-May is one of the most important festivals of local tribal
communities. Here the weather is very pleasant round the year with
maximum and minimum temperature ranging between 340 and 300 C.
The rains during June to September could be a bit irritating – The
average rainfall during the year is above 1624 mm.

Nalco Township at Damanjodi is a well-planned one. Apart


from 2968 dwelling units, the township has market complexes,
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community centers, clubs, swimming pool, playgrounds, parks, a 30


bedded well equipped modern hospital, guest houses, trainees’ hotels
etc. The township has its own Post Office, Police Station and Banks.
There is an English medium school offering CBSE courses. This school
is run by Delhi Public School Society. An Oriya medium high school is
run by Saraswati Vidya Mandir. Both the schools, because of their
facilities and standard of teaching, have become attractions even to
outsiders.

Nalco Nagar, Angul:

Nalco Nagar is situated within 5 km. of Angul town. Angul


was once a feudal state with a chequered history of palace intrigues and
wars with neighboring states. In 1847 the state was confiscated on
account of the rebellion against the British by the then ruling chief
Somanath Singh. Thus, Angul passed under the British rule earlier
which spread to many other parts of Orissa.. Angul became a district
headquarter in 1994.

Angul today is a fairly big and bustling town on the National


Highway No.42 which is the main Highway connection Bhubaneswar
with Raipur (MP), Sambalpur, Sundargarh & Rourkela. Nalco has
established its Smelter Plant, the Captive Power Plant and its township
close to the National Highway. The place is easily accessible from
Cuttack and Bhubaneswar by road and rail.

Local population, till the advent of industries, basically


depended on agriculture for livelihood. Today in the vicinity of Angul a
large number of industries have come up. The other important industries

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in and around this place are Fertilizer Plant of FCI, Heavy Water Plant
of Atomic Energy Commission, Talcher Coal Mines of Mahanadi
Coalfields Limited and two Thermal Power Plants of NTPC.
Establishment of Nalco and other industries have brought about
accelerated growth to the trade, commerce and ancillary industries in
the district.

The Nalco Township known as Nalco Nagar is modern and


well planned. In addition to 3679 dwelling units and trainees’ hostel
with 403 rooms, Nalco Nagar has many civic facilities like community
centers, clubs, stadium, swimming pool, market complexes etc. Your
Company has established here a 50-bedded hospital with ultra modern
facilities. As in case of Damanjodi, there is an English medium Delhi
Public School and an Oriya medium Saraswati Vidya Mandir offering
excellent educational facilities to the employees’ children upto 10+2
standard.

Angul has comparatively a dry climate. The summer months


can turn uncomfortable and very hot, sometimes with the mercury
touching 470 C.

It is important to note that due to the establishment of the


Company, its plants and townships, many local families were displaced
or lost parts of their lands in Damanjodi and Angul sectors. The
Company has paid adequate compensation to the affected families at the
time of acquiring the land and further as a matter of social obligation,
has been providing employment and business opportunities to the
members of the displaced families on preferential basis.

The Company has also been implementing various periphery


development programmes at considerable cost to improve the quality of
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life of the people living in the surrounding villages. Yet for various
social, political and economic reasons, sometimes discontentment and
agitations among local people noticed against the Company. These are
sensitive situations, which need very careful handling. NALCO has
never offend the local sentiments. Rather, always strive to play a
constructive role in day-to-day interactions with local people to help in
developing a climate of harmonious relationship and peaceful co-
existence.

The integrated complex has five main


segments:
Segment Initial Capacity Capacity Location
Capacity after first under
phase second
expansion phase
Expansion
Bauxite 24,00,000 48,00,000 63,00,000 Panchpatma
Mine tpy tpy tpy li in Koraput
Alumina 8,00,000 15,75,000 21,00,000 Damanjodi
Refinery tpy tpy tpy in Koraput
Aluminium 2,30,000 3,45,000 4,60,000 Angul
Smelter tpy tpy tpy
Captive 720 MW 960 MW 1200 MW Angul
Power Plant
Port 2200 tph 2200 tph Visakhapatn
Facilities am (AP)
(Ship
loading
rate)

Corporate Office :
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All the corporate activities are done at its Corporate Office at


Bhubaneswar, the capital city of Orissa.

Bauxite Mine:

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A fully mechanized open-cast mine of 48,00,000 tpa, on


Panchpatmali hills of Koraput district in Orissa, serves feed-stock to the
Alunmina Refinery at Damanjodi, located 16 km downhill. The
transportation is done through a 14.6 km long single flight, multicurve,
cable belt conveyor of 1800 tph capacity. The mining capacity is being
expanded to 63,00,000 tpa.

Area of Deposit : 16 sq.km


Resource : 310 million tones
Ore quality : Alumina 45%, Silica 2%
Mineralogy : Over 90% gibbsitic
Over burden : 3 mtr (avg.)
Ore thickness : 14 mtr (avg.
Alumina Refinery:

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The 15,75,000tpa energy-efficient Alumina Refinery, having


three parallel streams of equal capacity, os located in the picturesque
valley of Damanjodi. The Refinery provides alumina to the Company’s
Smelter Plant at Angul and exports the balance alumina to overseas
markets through Visakhapatnam Port. Presently, it is being expanded to
21,00,000 tpa capacity.
Smelter Plant :
The 3,45,000 tpa capacity Aluminium Smelter, located at
Angul in Orissa, is based on advanced technology of smelting and
pollution control. Its capacity is being further expanded to 4,60,000 tpa.
Smelter Plant has three main processes. Electrolytic reduction (Pot
line), Anode Plant (Carbon Area) & Cast House.

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Pot Lines:
The main process area of Smelter is the Pot line. At Nalco
Smelter, there are three pot lines. Each pot line has 240 pots. Fourth pot
line is under commissioning. Out of 240 pots of fourth pot line already
120 pots have already commissioned, rest pots will be commissioned by
this year-end.

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Indu
Production of Aluminium in Electrolytic cell (Pot)

Anode D.C.Energ
13600KW
Liquid bath
Carbon Area:

It consists of mainly three areas namely 1.Anode Paste Plant, 2. Anode


Baking Furnace, 3. Anode Rodding Shop. In the green anode plant
carbon paste is manufactured from calcined petroleum coke and coal tar

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pitch. The formed anodes are baked in the baking furnaces to obtain
necessary mechanical strength and electrical conductivity. The baked
anodes are sent to Rodding shop where the anodes are fitted with stem
bracket assembly.

Cast House:

The molten metal tapped out from pots periodically is sent to the cast
house where it is cast into Ingots, Sow ingots, Wire rod, Billets, strips.
Strips are further rolled into sheets in the Rolling plant.

Rolled Products Unit :

After acquisition and merger of International Aluminium Products


Limited, Nalco has started production from this 50,000 tpa plant. This
Rolled Products Unit is presently producing standard coils and sheets.
Besides, it has facilities to produce foil stock, fin stock, cable wrap
stock, coil stock and closure stock for a variety of end uses.
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The salient features of the Plant include :

 180 KA cell technology


 Fume treatment with dry-scrubbing system
 Manufacturing of Carbon anodes, Bus bars, Anode stems

etc.
 Integrated facilities for manufacturing Ingots, Sows, Billets, Wire
Rods, Strips and Rolled Products.
Captive Power Plant:

Close to the Aluminium Smelter at angul, a Captive Power Plant of 960


mw capacity has been established for firm supply of power to the
Smelter. The coal demand of the Plant is met from a dedicated mine of
Mahanadi Coalfields Limited. The Plant is also connected with the State
Grid for sale of surplus power. The ongoing expansion shall raise its
capacity to 1200 mw.

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Port Facilities:

On the inner harbour of Visakhapatnam Port on the Bay of Bengal,


Nalco has established mechanized storage and ship handling facilities
for exporting alumina in bulk and importing caustic soda. This facility
can handle ships upto 35,000 DWT.

Ship loading rate : 2200 tph

Alumina storage : 3 x 25,000 tonnes

Besides, Nalco exports from the ports of Paradeep and Kolkata.

1.3 NALCO PRODUCTS:


Alumina:
1. Calcined Alumina
2. Alumina Hydrate
3. Speciality Aluminas & Hydrates

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4. Detergent Grade Zeolite

Aluminium Metal:
1. Standards Ingots (each approx. 20 Kgs.)
2. Sow Ingtos (each approx. 750 Kgs.)
3. Wire Rods (in coil form 9.5mm dia weight approx. 2MTs.)
4. Alloy ingots (each approx. 10Kgs.)
5. Billets (in four sizes 127mm, 152mm, 178mm, 203mm dia)
6. Cast Stripes (in 1600mm width max. nominal gauge 6.35mm)
7. Cold Rolled Sheets

ALUMINIUM SOW INGOTS Aluminium


Standard Ingots

Billets
WIRE RODS
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SMELTER PLANT PRODUCTS

Cast strips

1.4 COMPANY PROFILE & LAND MARK


EVENTS :
Company Profile:

Name : National Aluminium Company (NALCO)


Location : ORISSA
Registered Office : Bhubaneswar
Regional Office : Bangalore, Chennai, Vishakapatnam, Mumbai,
Kolkata, New Delhi.
Ownership Pattern : Control Sector a wholly Government of India
Company
Main Promoter : Ministry of Mines, Government of India
Foreign Collaboration : M/s Aluminium Pechinery, France, Paris
Production Center : Damanjodi, Angul
Port Facilities : Paradeep, Chennai, Vishakapatnam
ISO-9002 : Alumina Refinery November 1994
Smelter Plant February 1995
Captive Power Plant December 1995
Bauxite Mines January 1996
ISO-14001 : Bauxite Mines, January 1996
Alumina Refinery February 1997
CPP December 1997
Smelter Plant May 1998
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Nature of Business : Mining and Manufacturing in the Alumina Sector.


Other area of Business : Captive Power Plant, Rail Transport
System

N.B.: Company’s has its own port facility at Vishakapatnam.

Landmark Events:

1 Discovery of Bauxite in the East Coast 1975


2 Preparation of NALCO’s feasibility report July 1979
3 Investment decision by the Govt. Jan 1980
4 Indo-French Collaboration Agreement Jan 1982
5 Formation of the Company Jan 1981
6 Foundation Stone Laid by Late Smt. Indira Gandhi March 1981
7 Signing of Major Euro-Dollar Loan Agreement Feb 1982
8 Civil Work Started Feb 1982
9 Commissioning dates:
Port Facilities Sept 1985
Bauxite mines Nov 1985
Alumina Refinery Sept 1986
Captive Power Plant Sept 1986
Smelter Plant Mar 1987
10 Commencement of Sale of Aluminium May 1987
11 Commencement of Alumina export Jan 1988
12 Commencement of Aluminium export Sept 1988
13 First mines safety awards 1988
14 First CAPE XIL Export Awards 1988
15 London Metal Exchange Registration May 1989
16 Dedicated to the Nation by Late Shri Rajiv Gandhi June 1989
17 Star Trading house status Jan 1992
18 Indira Gandhi Rajbhawa Award 1993, 1995
19 ISO 9002 Certificate :
Alumina Refinery Nov 1994
Smelter Plant Feb. 1995
Captive Power Plant Dec. 1995
Bauxite Mines Jan 1996
20 Indira Priyadershini Vikashmitra Award 1994

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21 ISO-14001 Certificate for environment Management 1996


system of Bauxite Mines
22 ISO-14001 Certificate for environment Management 1997
system of Alumina Refinery
23 FICCI Award for population control and Environment 1996-97
24 Excellent Public Sector Enterprise Award 1996-97
25 Environment Protection Award by IIEE 1997
26 Best Occupational Health Award by Govt. of Orissa 1998
27 Gem Granite Environment Award 1997-1998
28 First EEPC Export Award 1998-1999
29 Indira Gandhi Paryavaran Puraskar by Govt. of India 2000
30 Rajbhasa Shield by Ministry of Mines 2001
31 FIMI Environment Award 2000-2001
32 Dedication of Mines & Refinery Expansion April, 2002
33 FIEO Niryat Shree Award 2002-2003
34 Completion of 1st Phase Expansion 2004
35 Five Star Expert House Status 2005
36 Top Expert Award of CAPEXIL for 2oth year in 2007
succession
37 NALCO achieves Nava Ratna Status April, 2008

1.5 MANAGEMENT OF NALCO:

NALCO is managed by a Board of Directors appointed by the President


of India. The Board consists of maximum 18 Directors including the
Chairman-cum-Managing Director of the Company. Apart from CMD,
there are 5 functional or full time Directors heading Project &
Technical, Personnel & Administration, Commercial, Finance and
Production disciplines. There are 2 senior Govt. officials nominated to
the Board as Directors by the Government of India. Besides, there are
non-official Directors in the Board.

Thus, the Board of the Company is a pool of highly experienced and


outstanding professionals drawn from various fields of specialization.
The Board enjoys maximum possible operational autonomy, consistent
with the overall corporate objectives, basic policies and programmes
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with a view to achieving optimum utilization of its resources. Subject to


the provisions of the Indian Companies Act, the Memorandum and
Articles of Association, Memorandum of Understanding signed with the
Govt. and also subject to policies formulated by the Board of Directors,
from time to time, the Chairman-cum-Managing Director has full
powers to sanction expenditure or to deal with other matters for
effective functioning of the Company.

The management’s control system is based on delegation of authority


and individual accountability for results. The responsibility and
authority to take decisions on various matters are delegated by the
Chairman-cum-Managing Director to different levels in the
management hierarchy. For personnel matters such as appointments,
confirmations, promotions, discipline, transfer, grant of various
benefits, leave etc. powers have been delegated to different levels of
executives, in conformity with the principles and policies of the
management. The schedule of delegation of powers is a published
document available for reference, which is subjected to review, from
time to time, to incorporate necessary changes.

1.6 VISION, MISSION & OBJECTIVES:

VISION

To be a reputed global Company in the Metals and Energy sectors.

MISSION

To achieve growth in business with global competitive edge


providing satisfaction to the customers, employees, share holders and
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community at large.

OBJECTIVES
 To maximize capacity utilization.

 To optimize operational efficiency and productivity.

 To maintain highest international standards of excellence in


product quality, cost efficiency and customer service.

 To provide a steady growth in business by technology up


gradation, expansion and diversification.

 To have global presence and earn foreign exchange.

 To maintain leadership in domestic market.

 To instill financial discipline at all levels for achieving cost


and budgetary controls, optimize utilization of working capital
and effective cash flow management.

 To maximize return on investment.

 To develop a strong R&D base and increase business


development activities.

 To promote a result oriented organizational ethos and work


culture that empowers employees and helps realization of
individual and organizational goals.

 To maximize internal customer satisfaction.

 To foster high standards of health, safety and environment


friendly products.
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 To participate in peripheral development of the area.

1.7 ENVIRONMENT & QUALITY POLICY:

ENVIRONMENT POLICY:

In recognition of the interest of the society in securing


sustainable industrial growth, compatible with a wholesome
environment, Nalco affirms that it assigns high importance to promotion
and maintenance of a pollution free environment in all its activities.

Keeping the above in view, Nalco has set the following objectives: -
 To use non-polluting and environment friendly technology in all
industrial activities.

 To monitor regularly air, water, land, noise and other


environment conditions and pollutants fall-outs.

 To constantly improves upon the standards of pollution control


and provide a leadership in environment management.

 To develop among the employees an awareness of environment


responsibilities and their adherence to sound environment
practices.

 To work closely with Govt. and local authorities to help prevent


and minimize adverse consequences of the industrial activities of

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the environment.

 To comply with an applicable laws governing environment


protection through appropriate mechanism.
QUALITY POLICY:
Quality will form the core of our business philosophy. Meeting the
needs and expectations of the customers and consistently improving our
systems and work ethos will be our chosen path in achieving excellence
in business and fulfilling our social obligations.

Guideline Principles: -

 To ensure a healthy return environment by maximizing


operational efficiency, capacity utilization and productively.

 To continually improves and redesign systems process and


practices in order to ensure error prevention and improve
response time.

 To adopt internal customers focus as a means to external


customers satisfaction.

 To treat human resource as the key to quality excellence and


ensure development involvement and satisfaction of employees.

 To ensure high quality of inputs through proactive interaction


with suppliers.

 To meet obligations towards the society as a responsible


corporate citizen.

 To provide value of money to all share holders.

 To follow ethical business philosophy at all ties.

Commitment: -
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NALCO strictly adheres to the quality policy and objectives of the


company in letter and spirit and is committed to continuously strive for
their fulfillment.
1.8 PERIPHERY DEVELOPMENT IN NALCO:
As a corporate policy, NALCO allocates 1 percent of its net profit of the
year for social sector activities of the succeeding year, which works out
to around Rs 140 crore so far. Out of this, 40 percent that is Rs 56 crore
is earmarked for Angul sector. This amount is spent primarily for health
care, communication, water supply, education, veterinary services,
social forestry, sports and cultural activities. Also NALCO provides
employment facilities to the land displaced persons.

NALCO had spent Rs.28.75 crore for periphery development in Angul


sector so far and projects worth Rs 11.19 crore were either completed or
under progress. Besides, another Rs 16.05 crore had been allocated for
various new projects.

Nevertheless, since NALCO is performing well, the expectations of


public were also increasing day by day. Despite the best of support from
district administration, the local villagers were taking recourse to
agitational means, like Rasta Roko and Rail Roko, which were greatly
affecting the overall business of the company.

1.9 HRM PHILOSOPHY & HUMAN


RESOURCES:

HRM Philosophy:

In order to fulfill the objectives of the Company and its commitment

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towards its employees and the society including environment


protection, NALCO has developed various HR practices in its various
units.

These practices are based on the sound HRM philosophy which are as
under:

To attract competent personnel with growth potential and


develop their skills and capabilities in a congenial work and social
environment through opportunities for training, recognition, career
advancement and other incentives.

To develop and nurture favorable attitudes among the


employees and do obtain their best contributions to the organization by
providing stable employment, safe working conditions, job satisfaction,
quick redressal of grievances and through good pay and welfare
amenities commensurate with the Company’s capacity to spend and the
Government’s guidelines.

To foster fellowship and sense of belongingness among all


sections of employees through closer association of employees with the
management and by encouraging healthy trade union practices.

Human Resources :

There are 7461 persons possessing a variety of skills, qualifications and


competence. Starting with a core group of 262 employees in 1982, the
progressive growth in manpower has taken place in a planned manner,
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matching the needs of the different stages of the project. Present


strength of 7461 as on March, 2009 is close to optimum requirement
against existing capacity.

Composition of Human Resources :

Executives : 1839

Supervisors : 851

Skilled & Highly Skilled : 3668

Unskilled & Semiskilled : 1103

Composition of Human Resources

Executives
Supervisors
Skilled & Highly Skilled
Unskilled & Semiskilled

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BRANC
HES OF

NALCO

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REVIEW OF THE LITERATURE

Horowitz et al. (2002), provide one of the most definitive pieces of


research on the subject of human resource challenges in mergers and
acquisitions. Their article identifies the attributes of organizational
culture and human resource practices required for successful transitions
in mergers and acquisitions, and analyses the implications of culture
types for inter-organizational combinations. They cite the importance of
information when dealing with employee turnover during a merger or
acquisition, and also the importance of giving special attention to
management style and organizational integration in successfully
managing mergers and acquisitions. Another recent academic piece to
touch on the subject was that of Signorovitch (2004). This article
discussed how to successfully deal with a change in leadership in a
company, and in some cases, those leadership changes were
accompanied by other changes, such as reorganization, acquisitions or
mergers. He claimed that it is also not that difficult to get some early
insights into the new leader from colleagues in the organization,
especially in the human resources department, due to that department’s
necessary close association with the change.

Rozhan Bin Othman, June M.L. Poon Employee Relations; 22: 5 2000;
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pp. 467-480

The link between business strategy and human resource management


(HRM) practices has received considerable attention from researchers.
It is generally believed that integrating strategy and HRM will result in
positive organizational outcomes. The empirical evidence for the
strategy-HRM relationship is, however, still inconclusive

RESEARCH DESIGN

3.0 Research Design

A Research design is the specification of methods and


procedures for acquiring the information needed. It is the overall
operational pattern or network of project that stipulates what
information to be collected.

For the purpose of this study, research design consisted of setting


through existing literature and thus making theoretical background for
the study. It constitutes the blue print for the collection, measurement
and analysis of data.

3.1Title of the Study:

A Study on “HRM Practices” At NATIONAL ALUMINIUM


COMPANY LIMITED (NALCO), SMELTER PLANT ANGUL,
ORISSA.

3.2 Statement of the problem:

Human Resources plays vital role in any Organization. This helps


Company to improve the skills needed for better development.

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To study the Human Resource practices with special reference to


NALCO. Surveys are conducted to know the effectiveness and
loopholes is organization.

3.3 Objectives of the Study:

The training programme has the following objectives:-

a. To acquire an overall idea about the organization, its


structure, practices, history and present status.
b. To have a better knowledge about the real work
situation of the Organization.
c. To gain knowledge about the structure and function
of personnel and administration dept. of the
organization.
d. To study the statutory and non-statutory welfare
practices adopted by the organization and get a
practical knowledge in these areas.
e. To study the wage and salary administration.
f. To study the worker’s participation in management.
g. To know the recruitment procedure of NALCO.
h. To study about the Industrial Relation of NALCO.

3.4 Scope of the study:


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The scope of the study is wide as it deals with the human


resource practices and the whole aspect is collected through
unstructured interview with the officers of department of HRD and
other departments and also other such as clerks, executives, non-
executives and staff of the trade unions. The whole study is confined to
NALCO (ANGUL).

The main goal of the study is to know how industrial unit is


organizing and utilizing its manpower. The present study aims at
making an elaborate discussion of different function inside the smelter
plant NALCO at Angul and collect information about: -

• Human resource planning.


• Organization structure and function of HRD
dept.
• Welfare.
• Promotion.
• Recruitment.
• Training and development.
• Trade unions.
• Canteen.
• Industrial relation.
3.5 Limitations of the Study:

During this period the following difficulties were found: -

1. The first and foremost matter was the time factor.


Within a limited period of time, it was not possible to
study the various aspect of the organization details
and not possible to collect data from every corner.
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2. Employees were apprehensive of survey of data and


therefore hesitated in disclosing the data regarding
certain factors dealt in the study.
3. As the executives were busy with their work, they
could not afford much time for discussion.
4. It is very uncomfortable and strange on the part of
the trainee to interact with the staff initially because
they are unknown to us. Therefore I feel few days
comfortable and then uncomfortable and the rest
time become very short and insufficient to gain all
the knowledge about the organization.
3.6 Research methodology:

This is a systematic way to solve the research problem and it is


important component for the study without which the researcher may
not be able to obtain the facts and figures of the employees.

The following shows the methodology of the study.

A. Types of study:
It is a descriptive study method.

B. Data sources:
Data for the study consists of both primary and secondary
data.

Primary data:

Observation and interview both methods were adopted for


collecting the information under primary source. Primary data is
collected by interview backed up by structured questionnaire from the
targeted employees.
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Periodically visit to the Organization and interviewed with the


management. Official workers and trade union leaders and staff all are
primary sources.

Secondary data:

These information’s were collected from various booklets,


journals, official documents, records, filer, Annual administrative
reports of different section monthly magazines, company’s key book,
Nalco Diary, Training institutions project reports of Nalco all
information’s under secondary sources. These helped the researcher to
have an idea about the Organization and its activities.

C. Data collection tools:

The data for the study has been collected with the help of the following
tools:

 Questionnaire
 Personnel interview
Observation method.
Questionnaire consisted of closed and open ended with multiple
choices, scaling techniques, etc.

Personal interview:

In addition to questionnaire, personal interview was also conducted to


know the opinion of training and development in an organization.

D.Sampling process and Sample size:

A sampling is a definite plan for obtaining a sample from their


population; it refers to the techniques adopted in selecting items for the

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sample. Sampling design includes,

a. Sample units
b. Sample size
c. Sampling technique.
Sample units:

A sample unit for the study consists of the employees and managers of
various organizations. The employees belong to various departments.

Sample size:

Sample size of the study consists of 40 employees


and 10 Managers of HRD and from different
departments.

Sampling technique:

Sampling can be classified into probability and non-probability


sampling. But in this study, non-random convenient sampling technique
has been used for the purpose of arriving at the sample size.

E. Statistical tools for data analysis and


interpretation:
Using percentages and averages, data analysis has been done. On
the basis of tables, the facts are presented in the form of pie charts, bar
graphs, etc. The analysis of the data helps to identify the ways and
means of the solutions to the problems.
Period of the study:

The data collection took about 60 days during the month of February

and March 2010.

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Geographical area of the study:

The present investigation on the human resource management


undertaken in National Aluminium Company Limited, Orissa. The
measures confined to the employees of NALCO only. The period of
study is 8 weeks in the organization with in Human Resource
Management Department.

ORGANIZATIONAL REVIEW

EXISTING HR POLICIES IN NALCO


4.1 HR Policies & Innovations: -
HR Policies are needed in any organizations, as the company is running
as worldwide organizations. HR of an organization is its important and
flexible assets in NALCO.

HR PHILOSOPHY

1. To attract competent personnel with growth potential and develop


their skills and capabilities in a congenial work and social
environment through opportunities for training, recognition,
career advancement and other advancement.

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2. To develop a nurture favorable attitudes among the employees

and to obtain their best contributions to the organization by


providing stable employment, safe working condition, job
satisfaction, quick redressal of grievances and through good pay
and welfare amenities commensurate with the company’s
capacity to spend and the govt . guidelines .

3. To foster fellowship and self belongingness among all sections of

employees through closer association of employees with the


management and by encouraging healthy trade union of practices

HRD POLICY

NALCO believes that:

1. Human resources are the most important assets of the company.

2. While all other assets will depreciate with time, human resources
alone can appreciate with time in terms of competence, skill and
expertise.

3. Human resources have unlimited potential capabilities.

4. Development of Human resources is therefore most critical if the


organization has to remain dynamic and growth oriented.

HRD SYSTEM

HRD sub-system like open forum, suggestion and reward scheme


(Sarjana) and mentoring scheme are being implemented in various
divisions of the company. As a part of instituting the learning
organization strategy, annul HRD meet is being organized to share
experience on innovative practices and experimented in a group of

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leading corporate.

GOAL OF HRD SYSTEM IN NALCO

1. To create an enabling climate that can be continuously identified,


nurture and utilize the capabilities of his employees.

2. To devote the capabilities of each employee in relation to his /her


present job or role.

3. To develop the capabilities of each employee as an individual.

4. To develop a mutually supporting relationship between each


employee and his/her superior

5. To develop team spirit and effective functioning of every


subsystem of organization.

6. To develop or overall health and self –renewing capabilities in


the organization.

7. To develop collaboration among different sub-system of the


Organization.

HRD MECHANISM

• The capabilities of each employee as an individual.

• The capabilities of each individual in relation to his/her present


role.

• The capabilities of each employee in relation to his/her expected


future roles.

• The dynamic relationship between each employee and his or her


supervisor.
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• The team spirit and functioning in every organizational unit


(Department, Group etc)

• Collaboration among different units of the organizations.

There are some HR strategies policies of the company are as follows:

4.2 CONDUCT & DISCIPLINE

Employee’s conduct constitutes the image of the company. Conduct is a


dynamic process and in Nalco employees conduct and discipline are
most important for the organization and these are described below:

• Employee shall at all time maintain absolute integrity and


devotion to duty

• They shall not use their position directly or indirectly to secure


undue benefits such as employment or business contracts for any
member of their family, in their organization or in an
organization having dealings with their organization.

• Employees shall not take part in politics or assist any political


movement or activity.

• They shall not participate in demonstration.

• They shall not participate in Radio / TV programmes or


contributes articles on a subject, which may have an adverse
bearing on the affairs of their company.

• They shall not give evidence without permission of the authority


and while deposing evidence they shall not criticize their
company or the Government.

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• They shall not accept gifts directly or indirectly.

• They shall not give or take dowry.

• They shall not communicate any official documents or


information to any person to whom they are not authorized to
communicate such document or information.

• They shall not borrow money from or lend money to any persons
with whom they have official dealings.

• They shall avoid habitual indebtedness.

• They shall not contract another marriage while their wife or


husband is still living.

• They shall not bring any outside influence to further their


interests in respect of matters penetrating to their service in the
company.

All the executives are required to furnish details of immovable,


movable and valuable properties in the prescribed format at the time
of joining and there after once in two years. If the total transaction in
shares, debentures, mutual funds schemes etc. exceed Rs.50, 000
during the calendar tear, the employee shall, immediately intimate
the competent authority about such transactions.

Misconduct –

The term misconduct does connote a vast no. of actions. But without
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prejustice to its general meaning, the following illustrate some:

a) Habitual late attendance or irregular attendance or wilful absence.

b) Neglect of duty, including malingering or slowing down work.

c) Drunkenness, riotous and indecent behaviour.

d) Gambling within the premises of the establishment.

e) Acceptance of gifts, Lending and borrowing money.

f) Giving the false particulars for the purpose of employment.

g) Taking and giving bribes or any illegal gratification.

h) Damage to the property of the company.

i) Commission of any act which amounts to a criminal offence


involving moral turpitude.

j) Breach of any law relating to works and other rules or orders of


the company.

k) Abetment of or attempt at an act of misconduct.

l) Collection without permission of the authority of any money


except as sanctioned by any law of the land.

m) Theft, fraud or dishonesty in connection with the business or


property of the company.

n) Profession of pecuniary resources or property disproportionate to


the known sources of income.

o) Commission of any act amounting to sexual harassment of a


woman and / or women.

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Disciplinary Procedure – In the interest of justice and equity, there are


established procedures to check the growth of discipline, misconduct
and subversive action in their company. Conduct, discipline & Appeal
rules of the company deal with disciplinary procedure in respect of the
executives.

Non – executives employees are guided in the matters by the certified


standing orders. The penalties that can be imposed on an employee for
an act of misconduct may be minor or major.

4.3 MANPOWER PLANNING

Though NALCO is a Govt. Enterprise the manpower was introduced in


1983 when the company was in the project stage. The forecasting of
manpower requirements is with reference to the following broad
criterions’:

• Finding of job evaluation study.

• Creation of new facilities with new equipments.

• Change in designation or upgradation of existing system.

• Expansion and diversification programmes.

With regard to manpower planning in the smelter plant of NALCO, the


Industrial Engineering Department plays a crucial role. It asses the
future manpower requirements i.e. forecast the manpower, taking into
account the present manpower projections required for fulfillment of the
projects. In smelter whenever any department feels the requirement of
any extra manpower for itself, then that department report the same to

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the Personnel department, where the personnel department asks to the


Industrial engineering department go thoroughly into the job description
and job specification and then presents its final report of requirement at
the personnel department.

4.4 RECRUITMENT

Recruitment is the process of locating and encouraging potentials to


apply for existing or anticipated job openings.

Recruitment, logically aims at (i) attracting a large number of qualified


applicants who are ready to take up the job if it’s offered and (ii)
offering enough information for unqualified person to self select
themselves out.

NALCO generally recruit manpower of experience. Recruitment of


people at different job was done, but to simplify this procedure the
employee’s recruitment is categorized by NALCO in 2 groups –

1. Executives level of recruitment.

2. Non-executive level of recruitment.

Scope and Limitations: -

1. Their rules (prescribed in HR policies) are known as “NALCO


Recruitment & Promotion rules for executives-1984”.

2. Their rules shall apply to all executives posts including the E7


posts in company and will not apply to cares of promotion from
non-executives posts to executive post.

3. The post of executives is clarified as E0,E1, E2, E3, E4, E5, E6,
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E7, E8, E9 .

4. Rules not applicable to: -

• Who are appointed on tennure basis/reappointed/given


extension after attaining super annuition age.

• Whose terms of appointment provide to promotion after


competition of specified length of survive, period so
specified.

• Who are on deputation/retain on to survive in other


organization.

5. Rules not apply to any post whose appointment is made


internal Government.

Keeping in view all the rules all recruitment to different


posts is being internally organized by the corporate personnel
department in consultation which heads of units concerned.

SOURCES OF RECRUITMENT: -

 Advertisement in press on all India Basis.

 Through employment exchange.

 Circulation within govt. dept. and other PSUS

 Deputation from govt. dept. and PSUS.

 Circulations of vacancies among internal candidates serving in

the next scale lower to the level of recruitment and had also
completed probation period with required qualification.

OBJECTIVES OF RECRUITMENT IN NALCO: -


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 To provide a system for meaning executive posts in the complex

with persons having appropriate level of academic professional


qualification, skill, experience and motivation either through
recruitment from outside source or by promotion from within the
organization.

 To provide executive with reasonable opportunity for


advancement consistently with their performance availability for
opportunity.

 To provide for a system of equity fairness and objectives in


matters concerning recruitment and promotion of executives.

 To ensure placement of the right men on the right job at the right
time.

In the case of recruitment the job specification is given per amount


importance, which carries the required qualification for various posts;
the length of experience, age limit for post at various levels. The nature
of experience may be laid down with the approach of the competent
authority for various posts from time to time. It aims to attract appoints
for vacant job to chose right type of candidate.

4.5 SELECTION

Selection is general can be said as “process of prediction”. In other way,


it means establishing the best fit between the job requirements and the
candidate’s qualification in other hand.

CONSTITUTION OF SELECTION COMMITTEES: -

It is constituted by Appointing Authority. It mainly consists of at least 3


offices of appropriate states and functions as per post requirement.
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Other than this it comprises of following persons: -

I. GM as a chairman.

II. A representative from required areas.

III. A representative from HR department.

IV. A representative from ST/SC community.

V. State govt. representative as member.

In some exceptional cares, specialist from outside is nominated

within the selection committee.

SELECTION PROCEDURE: -

a) The requirement and selection shall be initiated by unit/office

concerned authorized to fill up the vacancies for non-executives.

b) The HR dept. screen and categories all applications/biodatas as


per notification/advertisement into those meeting the requirement
and those who don’t. Then they will prepare a list of candidates
to be called for test/interview in consulting with representive
department.

c) The no. of candidates to be called for test/interview shall not


exceed 10 times the no. of vacancies.

d) Minimum standard of job specifications as notified can be raised


to minimize the no. of candidates and any relaxation reduction in
job specification can only be made with the approval of the
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authority higher than the appointing authority with consultation


of the concerned personnel department.

e) 50% of marks shall be considered of a candidate to be called for


interview. In case of SC/ST candidates the qualifying marks will
be taken as 40%.

f) For being eligible for the job specified the candidates must secure
the required qualifying marks in both written test and interview
(the qualifying marks for interview being the same for test).

g) If in case any candidate will found eligible to the specified job,


but is fulfilling the requirements for lower grade job provided: -

• Candidate meets job specifications.

• Candidates haven’t any objection to accept the


job/appointment.

• The advertisement must include a provision for this.

Can be appointed in lower grade job.

h) The concerned HR department must avail the following

documents to the selection committee-

• Copy of the ad /notification with specific requirements for


the post.

• Bio-data of each candidate.

• Annual amenment report and comments of forwarding


authority in case of in turn as candidates, wherever
applicable.

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• Results of the test help prior to the interview.

• Any kind of special information in relation with the


selection of the candidate.

• The no. of posts being reserved for any category as


specified by the govt.

i) The concerned personal department will ensure continuity in


selection standards and starting salaries.

4.6 PLACEMENT

It means placement of write person at right job .The employee should


familiar with their work place, with group and with place where they
should work. After placement they discharge their duty.

4.7 PROMOTION

General Principles
• Promotion from one grade to another shall be made by
Appointing Authority on the recommendations of Departmental
promotion Committee. Departmental Promotion Committee shall
meet to consider the cases of eligible employees for the
units/office concerned for filling up vacancies in the grades once
in a year during the month of June.
• The Departmental Promotion Committee after taking into
consideration all relevant factors will recommend a panel of
names for promotion. Order of promotion will be released with
reference to the number of vacancies available with approval of
the Competent Authority on the 1st of July every year. However,
the panel so recommended will be valid for a period of one year.

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The vacancies arising during the period 1st July to 30th June are
required to be filled up, will be filled up from the approved panel
at the discretion of the competent authority.
• All promotions with the non-executives categories shall be
considered on the basis of availability of vacancies at the time of
consideration. For this purpose vacancies will be computed in
relation to number of posts sanctioned in each category and
grade, cadre wise, in any department.
In this company, promotions of an employee solely depend on his/her
performance. If the employee achieves the given target within a given
specified period, then he or she gets the promotion. After 3years period
promotion for executive and non-executive is there but it is not
compulsory. For Non –executives Trade test in specialized areas,
written test and viva are there for getting promotion For Executive
employees there is no test require, only it is on the base of performance
appraisal. From last one year they have to appear before selection
committees for promotion if their P.A is very good and outstanding.

Promotion Policy For Executive:

Nalco offers excellent growth opportunities to its employees consistent


with their seniority, qualification, performance and growth potential.
Here for non- executives promotion is by stagnation promotion and by
seniority basis.

Stagnation Promotion – Executives at E4 level and above not


processing the prescribed qualification will be considered for stagnation
promotion to next higher grade in the entire service career after one
year.

Seniority – Seniority is determined by the comparative merit position in


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the panel. i.e. – both in case of initial appointment as well as in case of


promotion. In case of an executive joins after 2 months from the date of
issue of offer of appointments. Seniority shall be counted from the date
of joining the post.

Promotion policy for Non- executive:

A non- executive employee is required to complete a minimum period


of 3-year service in the existing grade by 30th June of the year to be
eligible for consideration of promotion. Promotion to the higher grade is
subject to the following ;

a) Passing the prescribed practical/ trade / written tests and personal


interview.

b) Satisfactory records of performance and conduct.

c) Availability of vacancies in relevant line of promotion.

Promotions are based on the principle- com – suitability. i.e. all


being suitable the senior most will be promoted first. Seniority is
maintained as per the cadre scheme of the unit/ office where the
employee’s were working with reference to their date of joining the
post on recruitment / promotion.

4.8 PERFORMANCE APPRAISAL IN NALCO

In NALCO performance appraisal is not by 360 degree. Here P.A is of


2 types, Executive P.A and Non- executive P.A (Annual assessment of
non- executives).

Executive performance appraisal - It is a self-appraisal system in

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which each executive has the right to evaluate his/ her own
achievements during the year and the same appraisal is checked and
necessarily corrected by the reporting officers. The appraisal system has
7 components and are

• Pre appraisal target setting

• Self – appraisal

• Review discussion

• Weight age factor

• Time bound

• Wider participation in appraisal exercise

• Training & development

The reporting officer is required to set target and task against a time
schedule and as far as possible in quantitative terms in consultation with
the executive, whose performance, he is required to evaluate. This
exercise is undertaken at the beginning of the year. After the completion
of the year, the concerned executive gives a report in the prescribed
format about his own performance. The reporting and reviewing officer
holds a session of discussion on every aspect of the report. The period
of the appraisal coincides with the financial year and then through time
bound stage the completed report reaches to the corporate HRD
department on before 15th may. Apart from the reporting and reviewing
officer the executives report is seen and countersigned by the principal
heads of the units.

Non –executive P.A

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It includes P.A of all the employee along with supervisory personnel.


This process is performed by concerned executive of the department or
section through a stipulated assessment Performa. Here a 5- point scale
is used to rate the employees with reference to factors like job
knowledge, dependability, initiative, consciousness , attendance and
punctuality.

4.9 TRAINING AND DEVELOPMENT IN NALCO

Training is an expensive area of the company’s personnel budget, which


requires due attention in correlating training functional necessities and
developmental needs of the individual’s and the organization .NALCO
believes that training is a continuous process throughout the career of
every employee with a view to develop his technical , human and
conceptual skills as required for his current job and for his future career
growth keeping this in view in Angul sector there is also one S&P
Training Institute headed by one Chief Manager assisted by other
officers & staff.

The company fulfill it’s task of training &development it’s employee to


the optimum point extent by sponsoring them into various in house
programmes and to the courses offered by the reputed institutes in the
country and abroad. A training proposal may either come from the
department where an employee is working or it may come in the form
of a suggestion from the training department based on the training need
reflected in the appraisal and annual assessment reports .The training
proposals including proposals of participation in seminars, workshops,
and conferences are concerned with executives staff of the organization
are co-ordinate by corporate HRD department processed by the training
department. After attending any course of training, it is necessary for an

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employee to feed backs on the course of his superiors and colleagues


and to the Training department. Training feedback can be given through
a formal meeting or by circulation of a written report on the course. The
site-training department is entrusted with training programmes for non-
executives staffs of smelter and power complex only.

In order to plan and monitor the training and development activities,


the total spectrum of training has been classified into 8 majors sectors -

• Contractual Training on technological know-how offered by


Aluminium Pechiney, France and other suppliers of plants and
equipment.
• Functional Specialization & Refresher Training within & outside
the organization.
• Advanced Management Training for Sr. Executives at specialized
institutions in India and abroad.
• Management Development Programme, induction and orientation
training in house.
• Training of Trainees, i.e. Graduate Engineers, Management
Trainees, Operative Trainees, Land Displaced Trainees,
Apprentices under the Act.
• Supervisory Development Programmes in-house.
• Workmen Development Programmes in-house.
• Selective nominations to Govt. sponsored overseas training
programmes such as Colombo Plan and other exchange
Programmes.
• Broad details of in-house training schemes, recruitment and
training of trainees.

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Graduate Engineer Trainees:

The Scheme was introduced in 1984 with a view to select bright young
engineers on all-India basis, train them systematically within and
outside the organization according to their placement and specialization,
so that they take up the first line executive positions initially and grow
up along with the organization. This Scheme provides the foundation of
the managerial manpower of the organization. The training duration is
12 months consisting of:
1. Induction and Management Training: 2 months.
2. Plant Familiarization on the site: 1 month.
3. On the job training/Action Learning: 9 months.

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Operative Trainees:
Operative Trainees are taken in two categories, Sr. Operative Trainees
4.10 WAGE AND SALARY ADMINISTRATION
and Jr. Operative Trainees with different qualification mix.
Senior Operative Trainees:
Diploma in the required engineering discipline or B.Sc. with Physics,
Chemistry, Mathematics combination for placement in operation
departments. Period of training is 18 months.
Junior Operative Trainees:
Trade course from ITI with NCTVT certificate in required trade or HSC
pass for placement in operation departments. The training period is
spread over 18 months consisting of:
1. Induction and Orientation Training: 2 months.
2. Plant Familiarization on the site: 15 days.
3. On the job training/Action Learning: 15 & ½ months.
Trainee Workers:
For induction of personnel to man the posts at Unskilled level and to
acquaint to industrial work culture and environment ‘Trainee Workers
Scheme’ was implemented w.e.f. 16.12.1997. The qualification
required is Class VII pass/literate for LDPs. Under this scheme, trainees
are recruited and imparted training for 1 & ½ years on a stipend of
Rs.3000/- per month for the first year and Rs.3200/- per month for the
remaining period.

Land Displaced Persons Training:


The objective of this programme is to provide certain degree of skill
inputs to the persons otherwise coming from tribal and agrarian
background, so that they could be usefully employed in the industry.
The educational standard is up to primary school. Duration of training is
one year extendable by six months, on a stipend of Rs.400/- per month.
The training schedule for this category consists of general education in
reading, writing,
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familiarization with machines, tools and equipment, safety first aid etc.
60

Wage and salary administration is initially the application of a systemic


approach to the problem of arriving that employees are paid in a logical,
equitable and fair manner.

SCOPE, COVERAGE AND VALIDITY PERIOD

 This agreement/settlement all employees in ‘w’ (workmen) &


(supervisory) grade in NALCO.

 It settles demands made by union relating to wages, allowances


and other perquisites contained in the chapter of demands
submitted by the unions.

 Unless any repugnant is found in it this settlement shall be valid


for 4 year and 4 months.

 It will be called as ‘long term wage settlement’.

WAGE AND SALARY ADMINISTRATION IN NALCO

 The HRD & administration dept. carries out the wage and salary
administration.

 In case of executives the govt. guidelines and corporate office


authorities were responsible for salary fixation.

 In case of non-executives the wages fixed by negotiation in


between corporate office and representatives of the trade unions.

 The wage negotiation is held centrally and at the corporate level.

 NALCO has adopted the IDA pattern pay scales both for
Executives and Non –executives which are subject to revision

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once in ten years according to the terms of wage settlement made


in January 1997.

 In NALCO, total wage settlements have been done. They are;

I. Wage settlement 1

II. Wage settlement 2

III. Wage settlement 3

IV. Wage settlement 4

EXECUTIVE PAY SCALE (Revised): -

GRADE PAY SCALE (Rs)


E0 16400 – 3% - 40500/-
E1 20600 – 3% - 46500/-
E2 24900 – 3% - 50500/-
E3 32900 – 3% - 58000/-
E4 36600 – 3% - 62000/-
E5 43200 – 3% - 66000/-
E6 43200 – 3% - 66000/-
E7 43200 – 3% - 66000/-
E8 51300 – 3% - 73000/-
E9 62000 – 3% - 80000/-

E1, E2 = Provisional

E6, E7 = Provisional

NON-EXECUTIVE PAYS SCALE (To be revised): -

SCALE CODE PAY SCALE (Rs)


W1 4400 – 3% - 7950/-
W2 4650 – 3% - 8400/-
W3/T0/P0/M0 4925 – 3.5% - 9150/-
W4/T1/P1/M1 5325 – 3.5% - 9890/-
W5/T2/P2/M2 5725 – 3.5% - 10635/-
S0/T3/P3/M3 6125 – 3.5% - 10990/-
S1/T4/P4/M4 6625 – 3.5% - 11490/-
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S2/T5/P5/M5 7225 – 3.5% -12530/-


S3/T6/P6/M6 8000 – 3.5% - 13400/-
S4/T7/P7/M7 8550 – 3.5% - 14325/-
ALLOWANCES

In NALCO allowances and motivational incentives given to the


employees as per rules revised from time to time are given below

• Night shift allowances – Both for executive and non –executive


employees working in night duty (Rs 40 every night)

• Shift allowances - Where a non – executive employee is required


to prefer in splict shift with a spread over of not less than 10
hours he is paid Rs 12/day .

• Tiffin allowances – Rs 85/day for each employee for lunch and


Tiffin.

• Conveyance allowances – For maintenance of a registered vehicle


of a employee.

• Cash handling allowances – Employees handling cash in finance


department are eligible to get Rs250/ month

• City compensatory allowances – It is applicable to both executive


and non –executive employees as under A+,A , B+ and B class
cities .

• Non –practicing allowances – It is applicable in case of medical


physicians, doctors

• House rent allowances - Applicable for both executives and non –


executives employees when accommodation is not provided by
the company. It is according to city basis.

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• Newspaper allowances - The executives are eligible for


reimbursement of cost of newspapers /magazine / periodical and
professional literature.

• Liveries – All employees are entitled for the following items for
liveries at the following scale.

MALE EMPLOYEE FEMALE


EMPLOYEE

Two full sleeve cotton pants. Two cotton sarees and blouses
or

One pair of nylon socks One pair of nylon socks

Shoes Shoes

• Funeral Expenses – The funeral expenses of Rs 4000/ - is given


by the company to the nearest kith & kin of the deceased
employee on the day of funeral ceremony.

• There is electricity subsidy and reimbursement of P&T


(BSNL&MTNL) connections and in mobile phone for employee.

• Multi-purpose advances – Both executive and non-executive


employees of the company are eligible for multi – purpose
advance limited to Rs 40000/ - once in five year with 6% interest
per annum to be recovered in 40 equal monthly installments.
While non-executive employees are eligible for purchase of need
based items like personal computer for children’s education,
television, scooter and similar domestic articles required for son /
daughter /self marriage etc. , the executives are only eligible for
purchase of personal computer and computer peripherals .

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• Traveling allowances – All employees shall be eligible for


traveling allowance, if his journey is undertaking for the
following purpose: (a) Tour on duty (b) Transfer at the insistence
of the company. (c) For the medical examination of treatment
referred to, by the company (d) To participate in sports events
representing the company. (e) To attend training, seminar of
conferences sponsored by the company.

4.11 MOTIVATIONAL INCENTIVES

The company has the productivity based incentive schemes to


encourage the employees to achieve higher standard of productivity.
These schemes cover all the regular employees up to board level,
including trainee .All eligible employee of the plant level or unit have
been classified into 3 group depending upon their direct contribution to
production & productivity of the company .

‘A’ GROUP – Direct production and maintenance group

‘B’ GROUP – Technical service group

‘C’ GROUP - Common service group

‘D’ GROUP - Employee of other corporate and other offices.

A group is eligible for 100% achievements of productivity units,


while B &C are eligible for 85% and 70% of the productivity is
eligible for D group respectively.

4.12 HOLIDAYS AND LEAVE RULES

Holidays (National holidays) 26th January - Republic

15th August - Independence day

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2nd October - Gandhi jayanti

Restricted / Optional holidays - Two holidays on festival occasions in a


calendar year are admissible to the employees as restricted holidays, out
of an exhaustive list declared in the beginning of each calendar year.
Employees working in the corporate and regional offices of the
company observe 13 closed holidays. Other employees are entitled to 7
closed holidays in a calendar year besides 3 National holidays as
indicated above. Holiday list is declared at the start of the year.

LEAVE – There are several type of leaves in NALCO. The leaves


includes causal leave, earned leave, half pay leave, sick leave ,
extraordinary leave , quarantine leave , paternity and maternity leave
.The kinds of leave listed above may be granted in combination or
continuation of each , expect that casual leave cannot be combined with
other kinds of leave .No leave shall be granted beyond the date on
which an employee must retire on superannuation . Holidays
intervening the earned leave and casual leave included in the leave.

Earned leave – The earned leave is admissible at the rate of one day for
every 14 days of the work for non- executives employees. This amounts
to 26 days in a calendar year. In case of executive employees, leave is
earned at the rate 2.5 days for every calendar month of work, which
amounts to 30 days in a calendar year. Earned leave can be accumulated
maximum up to 240 days in case of executives and 120 days in case of
non – executives employees.

Casual leave – Casual leave is admissible up to 10 days in a calendar


year. Normally this leave should not be sanctioned more than 3 days at
a stretch.

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Half – pay leave – Executives are entitled to half- pay leave @ 20 days
for each completed year of service. This leave can be commuted to full
pay leave on medical ground. The commuted leave even if taken in
conjunction with other leave shall not exceed 240 days at a time.

Sick leave – Non- executive employees are entitled to 12 days of sick


leave in a calendar year. This leave is granted on medical ground. Sick
leave can be accumulated maximum up to 45 days for S&P and M&R
complex and 90 days in respect of employees posted at corporate,
Regional, Branch and Port facilities offices.

Special Disability Leave – This leave can be granted to an employee


who is disabled as a result of injury arising out of and in course of
employment. This leave can be granted up to 120 days on full pay and
the remaining period with half-pay.

Maternity leave – This is under maternity benefit act 1961. This is


limited to a period 135 day

Paternity leave – A male employee with less than two surviving


children may be granted paternity leave of 15 days during the
confinement of his wife.

Special casual leave – Special casual leave can be granted maximum up


to 30 days in a calendar year in circumstances unrelated to personal
reason of employees such as civil disturbances, curfew, participating in
sports events of National and International importance, joining
territorial army etc.

Transit leave – This is otherwise known as joining time available to an


employee on transfer depending upon the distance between old and new
place of posting.
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Leave Provision for Trainees – Trainees including GETs are entitled to


20 days of paid leave in a year. The unutilized part of this leave can be
carried forward as earned leave on confirmation / regularization.

4.13 PLANT & OFFICE TIMING

The corporate office at Bhubaneswar, Marketing &Liaison offices at


Mumbai, Kolkata, Bangalore, Delhi and Chennai remain open from
9.30 am to 5.30 pm .for these offices with thirty minutes mid – day
break .The offices at Angul and Damanjodi are open from 8am to 5 pm
coinciding with the general shift of the plants with one hour mid -day
break . The offices at Vizag & Paradeep are open from 8.30 am to 5pm
with 30 minutes break. Production, Maintenance and Essentials services
of the plants are operated round the clock in 3 shifts . Mines at
Damanjodi operates in A, B shifts only. ‘A’ shifts from 6am to 2pm,
‘B’ shifts from 2pm to 10pm, C’ shifts from 10pm to 6am.

Attendance – The attendance is recorded in electronic punching


machine through a punching card. The employees are required to punch
the card while entering and leave the work place. This enables the time
office to compute their wages. During the duty hours if the employee
have to leave the work premises, then they will be required to obtain
permission and out pass duly signed by the concerned shift –in- charge.

4.14 LEAVE TRAVEL CONCESSION

For the employees including their family members the company pays
the concessions for traveling to their hometown and back or in lieu of
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hometown to any place within a radius of 1000 km once in a block of


two years; and to any place in India without any restriction on distance
on furnishing the proof of journey, made and class of travel once in a
period of four years. This however is limited up to 1800 km each way
on certification, for all employees. Also the employees can go abroad
on LTC in lieu of All India LTC limited to some conditions.

4.15 PROVIDENT FUND

As the name suggest the provident fund provides employees, with a


lumpsum financial support when they retire, apart from various loans
and withdrawal during their service. All the regular employees of the
Company including persons employed by or through a contractor or in
connection with the work of the establishment but excluding a retire /
superannuated person, apprentice, trainee, casual labour are required to
become member of the Fund from the date of joining the Company.
Employee every month 12% of the employees’ basic salary is deducted
on account of PF. An equal amount is contributed by the company
towards this fund. Both these go to their PF account every month,
which they can withdraw or transfer after they leave the company. Here
pay includes special pay, personal pay, deputation and non- practicing
allowance. When employees voluntary contribution and compulsory
contribution taken together does not exceed 20% of their emoluments,
they are entitled to Income tax relief subject to existing provisions. The
Company does not contribute during the period when the employees are
not in a position to contribute, such as when they are on leave without
pay. On contributions both and compulsory contribution taken together
does not exceed 20% of their emoluments, they are entitled to Income

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tax relief subject to existing provisions. The Company does not


contribute during the period when the employees are not in a position to
contribute, such as when they are on leave without pay. On voluntary
and compulsory contribution of employees’ and on Company’s
contributions they are entitled to 8.5 % of interest per annum at present.

Withdrawal from the fund for specified amount to meet the following
kinds of expenditure
• Expenses for your illness and your family’s illness
• Cost of passage for your and for your family while going to
a foreign country for education or medical treatment
• For marriage, funeral and other religious occasions
• Cost of legal proceedings for vindication of your integrity
• Expenses on purchase of lands and building of a dwelling
house
• Pay premium on insurance policies of self or spouse
• Expenses of the damage caused to property on account of
flood, cyclone and other natural calamities
• Meeting living expenses in the event of non-receipt of pay
for 2 months or more or closure/lockout of the establishment for
more than 15 days without compensation
• Purchase of equipment to minimize hardship on account of
physical handicap
o Second drawl is not allowed unless and until the first loan is
repaid.
o Transfer of the amount in your credit is permissible in the

event of your change over to another organization having


recognized provident fund.

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o You can nominate a member of your family to receive the


amount in your credit in the event of your death.
BONUS:

Employees are paid bonus as per the Payment of Bonus Act, 1965. It is
paid to all categories of employees. It is paid around at the festival of
Durga puja. It depends upon the no. of months you have worked in a
financial year i.e.: April to March next. It is paid on a pro-rata basis.

GRATUITY

Any employee who completes 5 or more year of continuous service is


entitled to receive gratuity at the time of leaving the organization as per
the payment of gratuity act 1972. It is applicable to all categories of
employees after their clearance. The amount of Gratuity payable is
equal to 15 Days of Basic salary for each completed year of service.
The basic salary for calculation will be the last drawn basic salary.

GROUP GRATUITY SCHEME

 Paid to you by the Company for employee efficient, faithful


and long service.
 On completion of 5 years -15 days salary for each completed
year of service limited to Rs.3,50,000/- on
retirement/resignation/termination of service for reasons other
than fraud
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 Before completion– 15 days salary for each completed year of


service can be transferred if the employee joins another public
sector enterprise, otherwise nil .
 On termination of service in case of permanent disablement-
15 days salary for each completed year of service limited to
Rs.3,50,000/-
 On account of wilful negligence causing damage to the Co’s
property on or after completion of 5 years. - Similar
amount subject to deduction of amount of loss/damage.
 In the event of death while in service – The nominee is paid
15 days salary calculated till the age of superannuation limited
to Rs.3,50,000/-
 Termination of service for riotous, or disorderly behaviour, act
or moral turpitude or for reasons of fraud or misconduct – The
amount may be wholly or partially forfeited.

GROUP INSURANCE SCHEME

The scheme provides life assurance benefits to the employees of the


Company. The insurance premium is paid by the Company. All
employees are eligible to become the member.

Sum assured is as under: -

Sl.No. Category Insurance cover

01 W1 to W5 Rs.62,000/-

M0/M1/M2/M3

T0/T1/T2/T3/S0

P0/P1/P2/P3

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02 S1/S2/S3/S4 Rs.71,000/-

M4/M5/M6/M7

T4/T5/T6/T7

P4/P5/P6/P7

03 E0 to E4 Rs.81,000/-

04 E5 & above Rs.95,000/-

BENOVOLENT FUND SCHEME


• Voluntary scheme for all employees including trainees
• Membership is irrevocable
• Provides financial assistances to the families of the members who
die while in employment
• Rs.40/- (Rs.20/- as member’s contribution + Rs.20/- as matching
contribution of the company) is deducted and paid to the nominee
within a period of 90 days after death.
VOLUNTARY BENIFIT

These are the benefits which is provided by the organization for his own
willing because these benefits provides the employee internal
satisfaction for that the employee work hardly and heartily as a family
members. These are: rest period, holidays, casual leave, paid action and
sick leave.

4.16 MEDICAL ATTENDANCE RULE

The company offers very comprehensive, integrated and well equipped


service to its employees & their family members through its hospitals at
Damanjodi and Angul. The definition of family for the purpose of
medical treatment includes employee, spouse, children, parents,

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unmarried /widowed sister & brothers (below the age of 18years)


residing with and wholly dependent on the employee. Employees are
issued with medical card based on their declaration. In case of loss of it,
duplicate card can be issued on payment. Employees must keep their
medical cards in safe custody. Misused of medical card is viewed
seriously.

AWARDS & REWARDS SCHEME

Sarjana Reward Scheme :

This schemes intends to encourage involvement and creative thinking


amongst employees, recognize and reward them for their ideas which
result in improving productivity, quality of products or services and
reduction in costs. Zonal committees at unit level will reward such
creative ideas, which are accepted as implementable with token gifts of
Rs. 100 /- . After implementation of the suggestion, the zonal committee
can recommend a cash award subject to minimum of Rs.500 /- per
individual or Rs.2000 /- per group and a maximum of Rs. 2000 /- per
individual and Rs.10,000 /- per group. If the zonal committee feels that
the reward amount should be more, then the suggestion may be sent to
the central award committee at corporate office. The central committee
can recommend an award up to Rs.10,000 /- per individual and
Rs.25,000 /- in case of group. A motivator is also eligible for 20% of

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the reward amount in case of individual of group suggestion. Innovate


suggestion brought by a Quality circle can also be awarded under the
scheme.

Problem Solving Reward Scheme :

This scheme seeks to recognize and reward employees for their positive
contribution towards solving identified problems. A solution accepted
by concerned department head is to be reviewed by a committee headed
by the Director (P &A) / Functional Director, along with the concerned
unit head , at Corporate Office. The committee can recommend cash
award up to Rs.10,000 /- in case of individual & Rs.25,000 /- in case of
group subject to maximum Rs.5000 /- per person in the group. While
cash awards are to be distributed by the unit head once in a month, the
certificate of merit signed by CMD will be awarded to the concerned
employee on Foundation Day of the company.

House – keeping Reward Scheme:

This is to encourage participation of employees in creating better


working environment, and for making the place of work safe and
environment- friendly and increase productivity of individuals as well
as overall productivity of the plant. House- keeping committee with unit
head as Chairman will make periodic visits to different areas of plants
and the offices to asses the standards of cleanliness and orderliness of
such areas. The committee meets at the end of each calendar year and
decides annual cash awards comprising Rs.5000 /- (1st prize), Rs.3000 /-
(2nd prize) and Rs.2000 /- (3rd prize).

IMPORTANT AMENDMENTS DONE IN HR POLICIES &


PROCEDURES DURING 2008-09:-

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1. Canteen subsidy settlement-

• Canteen subsidy @ Rs.85/- only per day on physical


attendance with effect from 01/04/2007

• The cost per meal @Rs.20/- only will be charged with


effect from 01/01/2008from the employee who avail meal
in the canteen in lunch/ dinner.

2. NALCO long service award scheme-

• An employee shall be eligible for grant of award under the


scheme on completion of 25 years of continuous service.

• The award shall be an account equivalent to one month’s


salary as on the date of completion of 25 years of service.

3. NALCO executive family welfare scheme-

• To provide economic support to the dependent of the


deceased executive employee of the company, the
scheme’s membership is voluntary

• In the event of death of an executive one day HPL in


respect of all the member (expect the deceased) will be
enchased and paid to the nominee of deceased member
within one month of his death.

4. Clarification of NALCO LTC rule-

• Employees who are not entitled to travel by air, may travel


by air to visit Andaman & Nicobar Island, Lakshadweep
and Minicoy Island. However reimbursement will be
limited to their entitlement in sea passage as provided
under rule 5.8(i) & (ii) of HRM manual, in LTC rule. The
employees availing the facility are required to furnish
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proof of journey along with their claim for settlement.

5. Modification of NEFFAR scheme-

• Benefits will be payable from the month following the


month of death/ separation due to permanent total
disablement (PTD), if dues are deposited in time i.e. within
7 days of settlement of payable dues subject to a maximum
period of 90 days from death/ separation due to PTD.

• If death/ separation due to PTD occurs when salary


revision is due, benefits will be revised after such salary
revision, subject to deposit of additional amount.

• Shortfall in deposited amount can be deposited within one


year from death/ separation due to PTD for getting full
benefit from the month following deposits of such shortfall
amount.

• Benefits of NEFFARS admissible only in case no


employment has been provided by the company to any of
the dependent on compassionate grounds in NALCO.

• Benefits will not be admissible if spouse is employed in


NALCO.

• Company allotted accommodation can be retained up to 3


months or till completion of on-going academic year (in
case children are pursuing studies), whichever is later. In
case not vacating beyond this period, benefits shall remain
suspended till vacation of accommodation.

• In case of death of the spouse as the beneficiary of scheme,


a designated committee would examine and recommend

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the beneficiaries from amongst the legal heirs.

• Education of maximum 2 children will be allowed in


NALCO aided school with fees applicable for children of
regular employee of NALCO, subject to vacating company
accommodation within time specified above.

• Medical benefits as prescribed in the contribution post-


retirement medical benefit scheme.

DATA ANALYSIS AND INTERPRETATION

Table no: 1
Table title: Satisfaction of the respondents regarding recruitment
methods followed in NALCO.

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Source: Primary source.

Concept: An attempt is made to study the statifaction of the


respondents regarding recruitment methods followed in NALCO.

Analisys: From the above table it is clear that in NALCO


Company 68 percentage of employees were satisfied & 32 percentage
SL NO STATISFCTION NO OF PERCENTAGE
RESPONDENTS
1 YES 34 68

2 NO 16 32

TOTAL 50 100

of employees were not satisfied with their recruitment method.

Interpretation: From the above table it is clear that majority of


respondents are satisfied with their job.

Graph no: 1
Graph title: Satisfaction of the respondents regarding recruitment
methods followed in NALCO.

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79

Table no: 2
Table title: Induction training, which is applied in NALCO
immediately after recruitment.
SL NO INDUCTION NO OF PERCENTAGE
TRAINING RESPONDANTS
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1 YES 13 26

2 NO 37 74

TOTAL 50 100

Sources: Primary sources.

Concept: An attempt is made to study the induction training, which


is applied in NALCO immediately after recruitment.

Analysis: From the above table it is clear that 26%of the


respondents have undergone from the induction training immediately
after recruitment and 74% of the respondents have not come across any
induction-training program.

Interpretation: From the above table it is clear that most of the


respondents have not undergone any induction training immediately
after recruitment.

Graph no: 2
Graph title: Induction training, which is applied in NALCO
immediately after recruitment.

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Table no: 3
Table title: Type of recruitment adopted at NALCO.
SL NO RECRUITMENT NO OF PERCNTAGE
RESPONDENTS
1 TRAINEE 30 60
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2 REGULAR 20 40

TOTAL 50 100

Sources: Primary source.


Concept: An attempt is made to study the method of recruitment that is
followed in NALCO.

Analysis: From the above table it is clear that 60%of the respondents
are recruited as a trainee and 40% of the respondents are directly as
regular employee.

Interpretation: From the above table it is clear that majority of


respondents are recruited as a trainee.

Graph no: 3
Graph title: The method of recruitment in NALCO.

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Table no: 4
Table title: Training, which is undertaken by NALCO to its
employees on plant operation.
SL NO TRAINNING NO OF PERCENTAGE
RESPONDENTS
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1 On-the job 28 56

2 Off-the job 22 44

TOTAL 50 100

Sources: Primary source


Concept: The above table shows the training method, which is
undertaken by NALCO to its employees on plant operation.

Analysis: From the above table it is clear that 56% of employees are
going to on-the-job training and 44% of employees are off-the-job
training which is given by NALCO to familiarize its employees on plant
operation.

Interpretation: From the above table it is clear that most of


respondents are familiar with on-the-job training on plant operation.

Graph no: 4
Graph title: The training, which is undertaken by NALCO to its
employees on plant operation.

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Table no: 5
Table title: Satisfaction of respondents regarding training
programme, which is under taken by NALCO.

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SL NO STATISFACTIO NO OF PERCENTAGE
N RESPONDENTS
1 YES 50 100

2 NO 0 0

TOTAL 50 100

Sources: Primary source.


Concept: An attempt is made to study the satisfaction of the
respondents regarding training program, which is under taken by
NALCO.

Analysis: From the above table it is clear that 100% of respondents


are satisfied regarding the training programme followed by NALCO.

Interpretation: From the above table it is clear that all the


employees are satisfied with the training given by NALCO.

Graph no: 5
Graph title: Satisfaction of respondents regarding training program,
which is under taken by NALCO.
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Table no: 6
Table title: Awareness of respondents regarding company policy
followed in NALCO.

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SL NO COMPANY NO OF PERCENTAGE
POLICY RESPONDENTS
1 YES 29 58

2 NO 21 42

TOTAL 50 100

Sources: Primary source.


Concept: An attempt is made to study the awareness of respondents
regarding company policy followed in NALCO.

Analysis: From the above table it is clear that 58% of respondents are
satisfied and 42% of respondents are not satisfied with the company
policy followed in NALCO.

Interpretation: From the above table it is clear that majority of the


employees are satisfied with the Company policy.

Graph no: 6
Graph title: The awareness of respondents regarding company policy
followed in NALCO.

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Table no: 7
Table title: The sources of knowing the company.
SL NO SOURCES NO OF PERCENTAGE
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RESPONDENTS
1 CIRCULAR 23 46

2 BOOKLET 13 26

3 E- CIRCULAR 4 8

4 NOTICE BOARD 10 20

TOTAL 50 100

Sources: Primary source.


Concept: The above table shows the sources of knowing the
company.

Analysis: From the above table it is clear that 46% of respondents are
able to know through circular, 26% of respondents are through the
booklets, 4% of respondents are through e-circular and 10% of
respondents are through the notice board of NALCO.

Interpretation: From the above table it is clear that majority of


employees are aware of the Company through circular.

Graph no: 7
Graph title: The sources of knowing the company.

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Table no: 8
Table title: Satisfaction of the respondents regarding the salary and
other benefits provided by NALCO Industry.
SL NO BENEFITS NO OF PERCENTAGE
RESPONDENTS
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1 STATISFACTORY 2 4

2 EXCELLENT 43 86

3 GOOD 5 10

4 NOT-STATISFACTORY 0 0

TOTAL 50 100

Sources: Primary source.


Concept: An attempt is made to study the satisfaction of the
respondents regarding the salary and other benefits provided by
NALCO Industry.

Analysis: From the above table it is clear that 4% of respondents are


satisfactory, 86% of respondents are excellent and 10% of respondents
are good with the NALCO salary and other benefits.

Interpretation: From the above table it is clear that majority of


employees are excellent with the salary and other benefits of NALCO.

Graph no: 8
Graph title: The satisfaction of the respondents regarding the salary
and other benefits provided by NALCO Industry.

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Table no: 9
Table title: Awareness of the respondents regarding promotion policy
followed in NALCO.
SL NO PROMOTION NO OF PERCENTAGE
POLICY RESPONDENTS
1 YES 50 100
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2 NO 0 0

TOTAL 50 100

Sources: Primary source.


Concept: An attempt is made to study the satisfaction regarding the
awareness of the respondents of promotion policy followed in NALCO.

Analysis: From the above table it is clear that 100% of respondents


are satisfied with the promotion policy followed in NALCO.

Interpretation: From the above table it is clear that all the


employees are satisfied with the promotion policy, which is applied in
NALCO Industry.

Graph no: 9
Graph title: Awareness of the respondents regarding promotion
policy followed in NALCO.

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Table no: 10
Table title: Different criteria used for promotion policy.
SL NO CRITERIA NO OF PERCENTAGE
RESPONDENTS
1 SENIORITY 1 2
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2 PERFORMANCE 35 70

3 QUALIFICATION 10 20

4 ANY- OTHER 4 8

TOTAL 50 100

Sources: Primary source.


Concept: An attempt is made to study the criteria of the respondent’s
regarding the promotion policy used for employees followed in
NALCO.

Analysis: From the above it is clear that 2% of respondents are


seniority, 70% of respondents are performance, 20% of respondents are
qualification and 8% of respondents are getting promotion on the basis
of these criteria.

Interpretation: From the above table it is clear that majority of


employees are getting promotion on the basis of their performance.

Graph no: 10
Graph title: Different criteria used for promotion policy.

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Table no: 11
Table title: Welfare facilities provided by NALCO industry.
SL NO WELFARE NO OF PERFORMANCE
FAACILITIES RESPONDENTS
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1 YES 46 92

2 NO 4 8

TOTAL 50 100

Sources: Primary source.


Concept: An attempt is made to study the satisfaction of the
respondent’s regarding welfare facilities which is provided by NALCO.

Analysis: From the above table it is clear that 92% of respondents are
aware about the welfare facilities and 8% of respondents are not aware
about the welfare facilities which is provided by the NALCO Industry.

Interpretation: From the above table it is clear that majority of


employees are aware about the welfare facilities which is provided by
the NALCO Industry.

Graph no: 11
Graph title: The welfare facilities provided by NALCO industry.

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Table no: 12
Table title: Satisfaction of the respondents regarding job assignment.
SL NO JOB NO OF PERCENTAGE
ASSIGNMENT RESPONDENTS
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1 YES 35 70

2 NO 15 30

TOTAL 50 100

Sources: Primary source


Concept: The above table shows that the satisfaction of the employees
regarding job assignment.

Analysis: From the above table it is clear that 70% of respondents are
satisfied and 30% of respondents are not satisfied with their job
assignment.

Interpretation: From the above table it is clear that majority of


employees are satisfied regarding job assignment.

Graph no: 12
Graph title: Satisfaction of the respondents regarding job assignment.
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Table no: 13
Table title: Recognization of the job by superior and award from the
company for their excellence in service.
SL NO RECOGNITION NO OF PERCENTAGE
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RESPONDENTS
1 YES 30 60

2 NO 20 40

TOTAL 50 100

Sources: Primary source


Concept: The above table shows that reorganization of the job by
superior and award from the company for their excellence in service.

Analysis: From the above table it is clear that 60% of respondents


have job recognized by superior and given award for their excellence
and 40% of respondents have not recognized by superior and given
award for their excellence.

Interpretation: From the above table it is clear that majority of


employees are recognization of the job by superior and award from the
company for their excellence in service.

Graph no: 13
Graph title: Shows recognization of the job by superior and award
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from the company for their excellence in service.

Table no: 14
Table title: About company incentive scheme and employee reward
scheme.
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SL NO REWARD NO OF PERCENTAGE
SCHEME RESPONDENTS
1 YES 49 98

2 NO 1 2

TOTAL 50 100

Sources: Primary source


Concept: The above table shows that about company incentive
scheme and employee reward scheme.

Analysis: From the above table it is clear that 98% of respondents


were aware and 2% of respondents are not aware of company incentive
scheme and employee reward scheme.

Interpretation: From the above table it is clear that majority of


employees are aware about company incentive scheme and employee
reward scheme which is followed in NALCO.

Graph no: 14
Graph title: About company incentive scheme and employee reward
scheme.

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Table no: 15
Table title: Satisfaction of the respondents about the company rules
followed in NALCO.
SL NO STATISFACTION NO OF PERCENTAGE
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106

RESPONDENTS
1 YES 47 94

2 NO 3 6

TOTAL 50 100

Sources: Primary source


Concept: The above table shows that satisfaction of the respondents
about the company rules followed in NALCO.

Analysis: From the above table it is clear that 94% of respondents


were satisfied and 6% of respondents were not satisfied with the
company rules, which are followed in NALCO Industry.

Interpretation: From the above table it is clear that majority of


employees are satisfied with the company rules.

Graph no: 15
Graph title: Satisfaction of the employees about the company rules
followed in NALCO.

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Table no: 16
Table title: Job-security in NALCO.
SL NO JOB-SECURITY NO OF PERCENTAGE
RESPONDENTS
1 YES 50 100

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108

2 NO 0 0

TOTAL 50 100

Sources: Primary source


Concept: The above table shows that job-security in NALCO
Company.

Analysis: From the above table it is clear that 100% of respondents


were feeling their job secured in the company.

Interpretation: From the above table it is clear that all the


employees are feeling their job secured in service.

Graph no: 16
Graph title: Job-security in NALCO.

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Table no: 17
Table title: Satisfaction of the respondents regarding social security
measures extended to the employees of NALCO Company.
SL NO SOCIAL- NO OF PERCENTAGE
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110

SECURITY RESPONDENTS
1 YES 40 80

2 NO 10 20

TOTAL 50 100

Sources: Primary source


Concept: An attempt is made to study the satisfaction of the
respondents regarding the social security measures extended to the
employees of NALCO.

Analysis: From the above table it is clear that 80% of respondents


were satisfied and 20% of respondents are not satisfied with the social
security measures extended to the employees.

Interpretation: From the above table it is clear that majority of the


employees are satisfied with the social security measures extended to
the employees.

Graph no: 17
Graph title: Satisfaction of the respondents regarding social security
measures extended to the employees of NALCO Company.

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SWOT ANALYSIS

VISION: -To be a global reputed company in the metal


and energy sector.
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MISSION: - To achieve growth in business with global


competitive edge providing satisfaction to the customers,
employees, shareholders & community at large.
CORPORATE OBJECTIVE:

• To maximize capacity utilization.


• To optimize operational efficiency and productivity.

• To maintain highest international standard of excellence in


product quality, cost efficiency and customer service.

• To provide steady growth in business by technology up-


gradation, expansion and diversification.

• To have global presence and earn foreign exchange.

• To maintain leadership in domestic market.

• To maximize return of investment.

• To develop a strong R & D base and increase business


development activities.

• To promote result oriented organizational ethos and work culture


that empower employees and helps realization of individual and
organizational goals.

• To maximize international customer satisfaction.

• To faster high standards of health, safety and environment


friendly products.

• To participate in peripheral development of the area.

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GOALS

• To ensure a healthy return on investment by maximizing


operational efficiency, capacity utilization and productivity .

• To continually improve and redesign systems, processes and


practices in order to ensure error prevention and response time .

• To adopt internal customer focus as a means to external customer


satisfaction.

• To treat human resource as a key to quality excellence and ensure


development, involvement and satisfaction in employees.

• To ensure high quality of inputs through proactive interaction


with suppliers.

SWOT ANALISYS

STRENGTH

• Collaboration with foreign company.

• Competent manpower.

• ISO 9002 /ISO 18000/SA 8000 certificate.

• India’s largest aluminium producer and exporter.

• Advance technology.

• Highest capacity utilization.

• Sound financial condition.

• Job satisfaction among employees.

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• Huge bauxite reserve.

• Low operating cost.

• Relatively young manpower i.e. average age group 35 – 40.

WEAKNESS

• Rigid marketing strategies.

• Limited value added product.

• Political interference.

• Indiscipline among the employees.

OPPERTUNITY

• Invest for Greenfield expansion where cheap energy is available.

• Good scope for profit.

• Available of outsides funds.

• Good scope for joint venture in gulf countries.

• Entry to independent power plant business.

• The company has created a wide range of opportunities for the


ancillary industries which are the by products of the main plant.

• The company has already made provision for future


modernization with timely help of the Govt. of India .

• The company has expansion plans for down stream projects


because it thinks that production cost will go down.

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THREATS

• Global competition and competition from substitutes.

• Price fluctuation of aluminium and alumina in domestic and


international market.

• Rising price of oil, coal and other input materials.

• Privatization of the company.

• Environmental pollution regulation.

• Political intervention.

• Development of alternative technology.

• Too much dependence on contract labour.

Findings
The initial objective of the Study is to measure the satisfaction
level of human resource management practices of employees in
NALCO SMELTER PLANT, Orissa. The respondents were carefully
collected selected as to include actual uses of one or more facilities.
1. Recruitment: Majority of the employees are satisfied with the
recruitment method of the company and some employees are not
satisfied.
2. Majority of the employees have not undergone by any induction

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training immediately after recruitment.


3. From this study we can conclude that majority of employees are
recruited as a trainee and some are recruited directly as regular
employees.
4. On-the-job training program is more familiar with its employees
than off-the-job training program for the purpose of plant
operation.

5. All the employees of NALCO are satisfied with the training


given by Company.
6. The Majority of the employees are satisfied with the Company
policy.
7. The response pattern indicates that majority of employees are
aware of the Company through circular, some are through booklet and
some of them are through e-circular.

8. From the study we came to know that NALCO salary and other
benefits are excellent for the employees.

9. From the study we can conclude that all the employees are
satisfied with the promotion policy, which is applied in NALCO
Industry.

10. Majority of employees are getting promotion on the basis of their


performance and rest employees are by seniority and qualification.

11. From the respondents opinion 92% employees are saying that
apart from wage compensation NALCO is providing welfare facilities.

12. Most of the employees are satisfied regarding job assignment. So


it shows company’s job assignment process is satisfactory.

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13. 60% 0f employees are recognized for their job. so most of the
employees are satisfied with job recognition.

14. The company is following a very good incentive and reward


scheme. All most all employees are satisfied with this.

15. most of the employees are satisfied with the rules followed in the
company.

16. All the employees are secured with their jobs.

17. Majority employees are satisfied with the social security schemes
provided by the company.

Suggestions

and
Recommendati
ons
After careful observation and personnel interview with the
management personnel and trade union executives and going through
official records, collecting relevant information and analyzing such
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information; we have gained some knowledge about the HR practice,


employer-employee relation, product, production process, IR relation
in NALCO.
On the basis of year preceding discussion, the following
suggestions have been made with a hope that if these are followed, it
may help the organization in improving the HR strategies and
Industrial Relation.

The most important function of the organization can be to


inspire and motivate the people with enthusiasm towards their work
for the accomplishment of organizational objectives.

The company can provide effective training policy and


program to provide skilled personnel to the organization.

More welfare facilities can be provided to the people


working in the organization.

The company can provide highly sophisticated technology


to its worker in order to achieve organizational objective.

The management can go for job rotation ; as it would help


the workers to overcome from monotony of work and gain knowledge
on other job.

As unions in industry of Orissa are alienated with political


party so internal leadership can be encouraged to reduce the
dominance of outside leadership of trade unions.

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The workers education can be in an efficient manner.

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Conclusion
After carful investigation, we may conclude that entering in the
organization is like stepping into altogether a new world. At first
everything seems strange and unheard but as the time passes, one can
understand the concept and practice of the organization and ultimately
this help us to develop professional relationship. In this project we have
summed up the findings of on different dimension of Human Resource
Practice and Industrial Relation existing in NALCO. Further it is our
endeavor to offer suggestions that would help the company ensure good
HR Practices & Industrial Relation.

PRACTICE WITHOUT THEORY IS STERILE.


THEORY WITHOUT PRACTICE IS BLIND.

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Bibliography
1. Human Resource Management- By K. ASWATHAPPA & V S P RAO

2008 Edition.

2. HR MANUAL of Nalco

3. C.B. MAMMORIA- DYNAMICS OF INDUSTRIAL RELATIONS

4. Magazines of NALCO

• PARICHAYA- An annual report (2008-09)

• The Company You Keep

• SAGA OF SUCCESS

• NALCO UPTO DATE

WEBSITE:

www.google.com

www.nalcoindia.com

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