REPORT ON ORGANISATIONAL STUDY Conducted at HINDUSTAN AERONAUTICS LIMITED BANGALORE

Table of Contents
Introduction .............................................................................................1

Type chapter title (level 2)................................................................................................................2

Type chapter title (level 3).......................................................................................3 Type chapter title (level 1).........................................................................4

Type chapter title (level 2)................................................................................................................5

Type chapter title (level 3).......................................................................................6

1. INTRODUCTION

An organizational study refers to the complete understanding of an organization in all dimensions. Hindustan Aeronautics Limited is a well known aircraft manufacturing industry in India. The study includes the brief study of the core departments of HAL Bangalore. Different officials working in various departments have provided very important data in this report. Every effort has been made to understand the functions and activities of various departments as well as the manufacturing process.HAL is Indias only Aircraft manufacturer and is the foremost Aviation Company in southern Asia. Today, the companys activities range from the design, repair and overhaul, maintenance and field support to Military, Civil Aircraft and Helicopters. Aero engines, Industrial and marine gas turbine engines.

Aircraft Accessories, system and Avionics. Aerospace vehicle structure.

The Bangalore Complex of HAL is the oldest and the largest group of Aircraft and aero engine factories of the company. The Complex has its own airfield and comprises the Engine, Aircraft, Helicopter, Aerospace, Overhaul and Foundry & Forge divisions. It is adequately backed by design development flight-testing and evaluation centres, wind tunnels, test beds and a central laboratory. Its insistence on high standards both in manufacture and maintenance help HAL to grow.

OBJECTIVES OF THE STUDY

 To know how an organization performs as a whole. To study the functional departments To know how different departments function. To know how a department communicates when any order is received. To study the levels of participation To study the effectiveness of various forums To study the management -worker relationship To study the performance appraisal system. To study the different processes and the developments in HAL

SOURCES OF DATA

PRIMARY DATA Informal Interviews Observation SECONDARY DATA Text Books Articles Journals Websites Interview with workers and management representatives company files company reports and records

 important documents Personnel manual and texts.

SCOPE The scope of the study is to understand the functions of various levels of management, departments and the organisation as a whole. It is also used to analyse the company policies and their implications in the organisation. To analyse the various activities carried out in each department and how it helps for the smooth running of the organisation by achieving its key goals. LIMITATIONS Time was a major constraint because 5 weeks was not sufficient to study the whole organizational structure. Top Management cooperation was not sufficient due to their pre-occupied work. The response of the employees in giving information was lukewarm.

2. PROFILE OF THE STUDY

2.1 INDUSTRY PROFILE The aerospace and defence industry was struggling to maintain profitability even before 11th September 2001,and fears of further terrorism ,the conflicts in Afghanistan and Iraq, and a weak economy combined to devastate the commercial aerospace industry over the ensuring years. On the other hand the wars in Afghan and Iraq have bolstered the coffers if many defence companies, though belt tightening may be on the way. The mother of all defence deals occurred in 2001 when lockeed beat out Boeing for the $200 billion joint strike fighter contact, the largest defence contract ever. Spread out over almost 30 years, it my b the last major deals for drones( as evidenced in afghan with the use of general atomics predator)is expected to continue, supplanting the need for the more expensive manned aircraft and making it unnecessary to risk pilots lives in comb it, in the interim ,the soaring costs in Iraq have also put a damper on some other major projects. In 2004 the US army cancelled the $40 billion apache reconnaissance helicopter program; early in 2005 there was talk of scaling back the F/A-22 Raptor program and of reducing the number of C130J aircraft on order. A desire to be smart, fast and mobile has replaced the more and bigger doctrine of the cold war. To the end, several companies including Lockheed martin. Northrop Grumman and general dynamics have invested in hardware and software companies that focus on govt customers. The top defence contractors are Lockheed Martin, Boeing Northrop Grumman, and BAE system, Raytheon, General Dynamics, Thales and Eads. On the commercial side, airlines-by far the biggest customers in the sector

have lost billions since 2001.By way of illustration, the top nine airlines lost $10 billion in 2002 almost $6 billion in 2003,and about $4 billion in 2004,and both UAL(the parent of united airlines) and US airways have filed for bankruptcy protection. As mentioned previously, September 11 and subsequent travel fears dealt a devastating blow to a commercial aircraft market that was already reeling from a market slowdown. That market, which accounts for about 40% of aerospace and defence industry spending is divided into 4 segments; large commercial aircrafts(planes of 100 seats and more); maintenance, repair and overhaul; jet engines and business and regional aircraft(less than 100 seats). In 2001 Boeing n airbus, the worlds only large commercial Aircraft market, saw orders plummet by 45% and 28% resp, airbus recently surpassed Boeing in orders, but the formers 2002 delivers dropped 7% from 2001.boeing meanwhile experienced a staggering 28% decline in deliveries from 2001.as a result the drastic fall off in business. Boeing cut about 30000 jobs or roughly 30% of its commercial aircraft workforce in 2002. Aircraft orders picked up in 2003 and 2004 as Boeing and airbus continues to duke it out for airline orders.boeing is working on its long range, fuel efficient, mid sized, 7E7 Dream liner (due in 2008) and a 550 passenger behemoth. Airbus then upped the ante by announcing that it would built the A350 (due in 2010) to compete directly with Boeing 7E7. Aviation is one of the most significant technological influences of our time and empowers the nation with strength. It is a major tool for economic development and has a significant role in national security and international relations. India has been fortunate to have started aeronautics related activities in 1940, with the establishment of HAL. The company was conceived by the visionary and far sighted industrialist, Sir Walchand Hirachand in December 1940 in association with the govt of Mysore.

For 6 decades, HAL has spread its wings to cover various activities in the areas if design and development, manufacture and maintenance of advanced fighters, piston and jet engine trainers, commercial aircraft, helicopters and the associated aero engines ,aircraft systems, equipment and avionics. The 14 manufacturing units are fully supported by 9 R&D centres: HAL's product track record consists of 12 types of aircraft from in house R&D and 13 types by license production inclusive or 8 types of aero engines and over900 items of aircraft systems equipment (avionics and accessories). HAL has so far produced over 3400 aircrafts, 3100 aero engines and overhauled over 7000 aircraft and 23000 aero engines along with related systems and equipment. Recognising the business opportunities offered by the growth of civil aviation, HAL has embarked on a program for the co-production of 50-70 seated aircraft with a partner, and is also slated with partner for co-development and manufacture of 100 seated aircraft.HAL has gradually undergone a metamorphosis and grown into a major aeronautical complex with fully integrated facilities for design, development manufacture and maintenance. HAL is comparable admirably to international aerospace companies like BAE systems,pratt & whitney,boeing,rolls Royce and honwyy well as some Indian pvt sector companies such as reliance with regard to key financial parameter such as PBT to sales, BIT to capital employed, earning per share,debt,equity ratio etc.this reflects the sound financial health of the company. Design capabilities, modern facilities and skills combines with competitive pricing and prompt deliveries, make HAL a valuable partner for challenge programmes in aerospace and related fields.

2.1 COMPANY PROFILE ABOUT THE ORGANIZATION

COMPANY AT A GLANCE Name of the organisation Address of the organization M/s Hindustan Aeronautics Limited M/s Hindustan Aeronautics Limited P.B.No.1788, Bangalore-17 Year of establishment Constitution of defence Nature of activity Manufacturing of Aircraft 1941 Public sector, wholly owned by ministry

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942.

Today, HAL has 19 Production Units and 10 Research and Design Centres in 8

locations in India. The Company has an impressive product track record - 15 types of aircrafts/Helicopters manufactured with in-house R & D and 14 types produced under license. HAL has manufactured over 3646 Aircrafts/Helicopters, 4096 engines and overhauled over 9447 aircraft and 29886 engines.

VISION STATEMENT TO MAKE HAL A DYNAMIC, VIBRANT, VALUE BASED LEARNING ORGANISATION WITH HUMAN RESOURCES EXCEPTIONALLY SKILLED, HIGHLY MOTIVATED AND COMMITTED TO MEET THE CURRENT AND FUTURE CHALLENGES.THIS WILL BE DRIVEN BY CORE VALUES OF THE COMPANY FULLY EMBEDDED IN THE CULTURE OF THE ORGANISATION.

MISSION STATEMENT To become a globally competitive aerospace industry while working as an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace defence equipment and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence ".

QUALITY POLICY Design and develop fixed wing aircraft and aerospace system and equipment using state of the art technologies in design manufacture and project management to give world class product to the customer. Provide upgrade solutions of existing aircraft so that the customer is able to exploit full potential of the aircraft. Evolve new technologies to be self related and build confidence through product implements.

 Adopt process and system approach for quality and manufacturing. QUALITY OBJECTIVES Understanding and satisfying the needs of customers. Adherence to design and approved standards in all direct and support activities. Implementation of process control in all spheres of activities. Operation of an effective system for early detection of adverse trends and their prevention. Operation of company wide continuous improvement programmes Development of human resource through training, involvement and motivation. Progressive implementation of statistical techniques for quality maintenance and improvement.

HAL has been successful in numerous R & D programs developed for both Defence and Civil Aviation sectors. HAL has made substantial progress in its current projects: Dhruv, which is Advanced Light Helicopter (ALH) Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002, in the very first year of its production, a unique achievement.

HAL has played a significant role for India's space programs by participating in the manufacture of structures for Satellite Launch Vehicles like

PSLV (Polar Satellite Launch Vehicle) GSLV (Geo-synchronous Satellite Launch Vehicle) IRS (Indian Remote Satellite) INSAT (Indian National Satellite)

HAL has formed the following Joint Ventures (JVs):

BAeHAL Software Limited Indo-Russian Aviation Limited (IRAL) Snecma-HAL Aerospace Pvt Ltd SAMTEL-HAL Display System Limited HALBIT Avionics Pvt Ltd HAL-Edgewood Technologies Pvt Ltd INFOTECH-HAL Ltd TATA-HAL Technologies Ltd HATSOFF Helicopter Training Pvt Ltd International Aerospace Manufacturing Pvt Ltd Multi Role Transport aircraft Ltd

Apart from these seven, other major diversification projects are Industrial

Marine Gas Turbine and Airport Services. Several Co-production and Joint Ventures with international participation are under consideration.

HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and Border Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness.

DIVISIONS OF HAL

Aircraft Division Manufacturing, repair or overhauling and supply of spares for Aircrafts like Jaguar Light combat Aircraft, pilot less target Aircraft, Structural work packages for exports. Aircraft overhaul division Jaguar, Kiran, Mirage-2000 Engine division Manufacture and overhaul of Adour MK811, Artoust IIIB and Garrett TPE 331-5 engines. Aerospace Division Structures for PSLV, GSLV and satellites.

 IMGT Division Manufacture and overhaul of LM2500 Industrial and Avon and Allison 501K/571 engines. Foundry and Forge Division Castings, Forgings, Rolled Rings powder metallurgy products. Airport services centre Technical services at HAL Airport, civil Aircraft maintenance, cargo handling.

PROJECTS UNDERTAKEN BY HAL

HELICOPTER PROJECT

During 1962, an agreement with m/s.SNIAS of France 408 license production of Allogettee ill (Chetak) Helicopter fitted with Artouste Engine was reached. A separate agreement was reached with M/s.Turbomican France factory. More than 450 Chetaks and Cheetahs have been produced at Bangalore till 1986.

KIRAN MKII PROJECT

The modification work for HJT-16 was taken up to replace the viper Engine with departed orphus 701 Engine. The project was named Kiran MK-II. The first prototype had its maiden flight in July 1976. This Aircraft is currently under manufacture at Bangalore. A total of 61 Aircraft have been made.

 HPT 32 PROJECT AT BANGALORE

The design and development of HPT 32 a basic piston Engine trainer was undertaken at Bangalore during 1974. The first prototype made to maiden flight on 6th January 1997. This Aircraft was produced at Kanpur.

JAGUAR PROJECT AT BANGALORE

An agreement with British Aerospace was entered into during April 1979 for the manufacturing of Jaguar Aircraft at Bangalore. An agreement was also signed with Jurbonica of France for the manufacturing of Adour Engine and also at Engine division or fitment to Jaguar Aircraft. The manufacturing of Aircrafts started by 1981 and till date, 91 Aircraft have been manufactured. This is a current project at Bangalore.

HTT 34 PROJECT AT BANGALORE

The new HTT-34 turns seat turbo prop trainer Aircraft, design and development by HAL Bangalore had its maiden of light on June 17th 1984. This Aircraft is fully acrobatic turbo prop trainer and is a derivative of the earlier HPT 32 piston Engine trainer Aircraft with its piston Engine replaced by a turbo prop Engine of 420 SHP with associated system changes and provision of navigational facilities such as avionic are of indigenous design. The Aircraft provided advanced flying and navigational training to student pilots.

HAL ISRO JOINT VENTURE

Under the joint venture HAL is undertaking the light Alloy structure fabrication of polar satellite launch vehicle of stage and tank age. A new division attached to the Bangalore complex has been formed in name of Aerospace Division and was officially opened by Air marshal M.S.D.Woolen, chairman of HAL on 31st march 1988. So far HAL has delivered structures for the ARYABHATTA, BHASKAR, ROHINI, APPLO, SROSS and IRS light alloy structures manufactured in HAL for the PSLV and GSLV has also been handed over to ISRO recently. HALS NAVAL PROTOTYPES OF ALH

The Naval prototypes of the advanced light Helicopter (ALH) designed and developed by HAL, soared into the skies on its inaugural of light on 22nd January 1996 in the presence of the staff of Naval staff Admiral V.S.Shekhawat its naval colleagues. The Naval version of the ALH which is designed to perform anti submarine warfare, anti- surface vessel mission, search and rescue operation and the utility roles will be inducted into the Indian Navy by 2001A.D. The naval prototype which is the 4th version of the ALH flew with a pair of roar Engines, developed jointly by the allied signal Aerospace and the Alison Engine of US. The 3 previous ALH prototypes were powered by French Engines. The ALH has been designed to meet the needs of the Indian armed forces The Army and the Air force version has skid under carriages and were under advanced stages of flight test.

INDIGENOUS-LCA PROTOTYPE

Prime minister rolled the first indigenous LCA prototype out of the HAL hangers on 17th November 1995. The indigenous KAVERI Engine which is under development and testing stage incorporated into the LCA. With the development of LCA India have the capability to design and produce any type of Aircraft. Nearly

5000 scientists from 220 different institutes are involved in the LCA project. The 2nd prototype of LCA is under flight test. The government of India has set up Aeronautical development Agency (ADA) for the design and development of performance against future targets.

3. HISTORY

HAL was established as Hindustan Aircraft in Bangalore in 1940 by Walchand Hirachand to produce military aircraft for the Royal Indian Air Force. The initiative was actively encouraged by the Kingdom of Mysore, especially by the Diwan, Sir Mirza Ismail and it also had financial help from the Indian Government. The organisation and equipment for the factory at Bangalore was set up by William D. Pawley of the Intercontinental Aircraft Corporation of New York, who was an exporter of American aircraft to the region. Pawley managed to obtain a large number of machine-tools and equipment from the United States.

The Indian Government bought a one-third stake in the company and by April 1941 as it believed this to be a strategic imperative. The decision by the government

was primarily motivated to boost British military hardware supplies in Asia to counter the increasing threat posed by Imperial Japan during Second World War. On the 2 April 1942 the government announced that the company had been nationalised when it had bought out the stakes of Walchand Hirachand and other promoters so that it can act freely. The Mysore Kingdom refused to sell its stake in the company but yielded the management control over to the Indian Government.

In 1943 the Bangalore factory was handed over to the United States Army Air Force but still using Hindustan Aircraft management. The factory expanded rapidly and became the centre for major overhaul and repairs of American aircraft and was known as the 84th Air Depot. The first aircraft to be overhauled was a PBY Catalina followed by every type of aircraft operated in Indian and Burma. When returned to Indian control two-years later the factory had become one of the largest overhaul and repair organisations in the East. Prototype in its hangar.

After India gained independence in 1947, the management of the company was passed over to the Government of India and was renamed as Hindustan Aeronautics Limited (HAL) on 1 October 1964 when Hindustan Aircraft Limited was merged with the Aircraft manufacturing Depot, Kanpur. Though HAL was not used actively for developing newer models of fighter jets, the company has played a crucial role in modernization of the Indian Air Force. In 1957 company started manufacturing Jet engines (Orpheus) under license from Rolls-Royce at new factory located in Bangalore. During the 1980s, HAL's operations saw a rapid increase which resulted in the development of new indigenous aircraft such as HAL Tejas and HAL Dhruv. HAL also developed an advanced version of the MiG-21, known as MiG-21 Bison, which increased its life-span by more than 20 years. HAL has also obtained several multi-million dollar contracts from leading international aerospace firms such as Airbus, Boeing and Honeywell to manufacture aircraft spare parts and engines.

OPERATIONS

HAL is one of the largest aerospace companies in Asia with its annual turnover to be running above US$2 billion. More than 40% of HAL's revenues come from international deals to manufacture aircraft engines, spare parts, and other aircraft materials.

4. EVOLUTION AND GROWTH OF THE COMPANY The Company's steady organisational growth over the years with consolidation and enlargement of its operational base by creating sophisticated facilities for manufacture of aircraft / helicopters, aero engines, accessories and avionics is illustrated below.

4.1 ORGANIZATIONAL HIERARCHY

PRODUCT PROFILE PRODUCTS OF HAL 1. Jaguar 2. MiG-27 3. MiG-21 4. DO-228 5. HPT 32 6. HS-748 7. ALH 8. Cheetah 9. Adour 10. Garret 11. Orpheus 12. MiG engines R-11, R-25 and RD-33 13. Chetak 14. Structures for satellites and space launch vehicles 15. Artouste 16. Dart 17. Gnome 18. Mechanical, hydraulic, electrical, flight control, fuel and pneumatic equipments and instruments 19. Communication, navigations and advanced avionics systems 20. Castings and forgings 21. Mirage 22. Kiran 23. Piston engines 2.4 CUSTOMER PROFILE

International Customers Airbus Industries, France APPH Bolton, UK BAE Systems, UK Chelton, UK Coast Guard, Mauritius Corporate Air, Philippines Cosmic Air, Nepal Dassault Aviation, France Dowty Aerospace Hydraulics, UK EADS, France ELTA, Israel Gorkha Airlines, Nepal Hampson, UK Honeywell International, USA Island Aviation Services, Maldives Israel Aircraft Industries, Israel Messier Dowty Ltd., UK Mitsubishi Heavy Industries, Japan MOOG, USA Namibian Air Force,

Domestic Customers Air India Air Sahara Airports Authority of India Bharat Electronics Border Security Force Coal India Defence Research & Development Organisation Govt. of Andhra Pradesh Govt. of Jammu & Kashmir Govt. of Karnataka Govt. of Maharashtra Govt. of Rajasthan Govt. of Uttar Pradesh Govt. of West Bengal Indian Airforce Indian Airlines Indian Army Indian Coast Guard Indian Navy Indian Space Research Organisation Jet Airways Kudremukh Iron ore Company ltd. NALCO

Namibia Peruvian Air Force , Peru Rolls Royce Plc, UK Royal Air Force, Oman Royal Malaysian Air Force, Malaysia Royal Nepal Army, Nepal Royal Thai Air Force, Thailand Smiths Industries, UK Snecma, France Strong field Technologies, UK The Boeing Aircraft Company, USA Transworld Aviation, UAE Vietnam Air Force, Vietnam

Oil & Natural Gas Corporation Ltd. Ordnance Factories Reliance Industries United Breweries

4.3 PROJECTS COMPLETED BY HAL The centre has successfully designed and developed the multi role Advanced Light Helicopter (DHRUV) certified by military and civil certification authorities. The centre has also successfully evolved modifications to upgrade Cheetah and Chetak helicopters to meet user requirement. Design and support for re-engining of the Cheetah helicopter. Modifications for seaking helicopter.

CURRENT PROJECTS OF HAL Weapon systems integration on ALH glass cockpit development for ALH Light combat helicopter (LCH) Jaguar upgraded Aircraft programme

Pilot less Target Aircraft Lakshya Light Combat Aircraft Tejas Advanced Light Helicopter Dhruv Intermediate Jet Trainer HJT-36 FUTURE PROJECTS OF HAL

Advanced Light Helicopter Improvement Alternate engine integration Health and usage monitoring system Advanced Jet Trainer Hawk Combat Aircraft Trainer Medium multi role combat Aircraft. ADVANCED TECHNOLOGIES

Bearing less main rotor Ducted fan tail rotor Composite tail drive shaft Fly-by-high controls

 Radar cross section studies UPGRADATION AND LIFE EXTENSION OF:

Cheetah/Chetak helicopters MI helicopters Seaking rotor blades Seaking Para sailing modifications

4.4 SIGNIFICANT EVENTS 1940-50 Formation of HAL by late Walchand on 23rd December 1940. First flight of harbour trainer on 17th July 1941. Government of India took over HAL and handed over to US Air force (September 1942 to December 1946) for repair/ overhaul of SEAL Aircraft.
HAL was placed under ministry of industry and supply in December 1945.

Design and development of HT-2 Aircraft elementary piston engine trainer,

theist indigenous project sanctioned in October 1948.

1950-60 HAL was placed under ministry of Defence, Government of India on 1st January 1951 License agreement signed for manufacture of VAMPIRE and GNAT. Design of jet Aircraft, the MARUT (MF-24) started in August 1956. Jet Engine factory set up at Bangalore by 1959. Design of PUSHPAK and KRISHIK was undertaken and there the manufacture of production of HS74BG up. 1970-80 Hyderabad and Lucknow division were set up for manufacture of Helicopter. And accessories in July 1970 and November 1973 respectively. Design and development of BASANT, HP-32, AJEET TRAINER, KIRAN MK 1/11 and ALJ were sanctioned. 1980-90 License agreement for MiG-27 Aircraft concluded in March 1982. New divisions of KORWA sanctioned in August 1982 manufacture of advanced system equipment.

4.5 PROGRAMMES CONDUCTED IN HAL

VIGILANCE AWARENESS WEEK

Customer education programmes, elocution competitions, slogan writing competitions and essay competitions were held to increase the vigilance awareness and to sensitize the people about the ill effects of corruption.

QUALITY MONTH CELEBRATION

Several activities are carried out during the month, a few of the programmes organised were: essay writing, poster and slogan writing, quiz contest, lectures from eminent speakers, Industrial visits. To create awareness among employees.

PRODUCTIVITY WEEK ACTIVITIES

In connection with the productivity week, banners were displayed at strategic points of the division to bring awareness on productivity. Productivity awards were presented to selected employees in recognition of their outstanding performance during the year in both direct and indirect departments.

Some of the activities are:

Display of banners at the gates.

 Display of productivity slogan posters in all the shops and prominent places of the division. Slogan and essay competitions in Kannada, Hindi and English languages.

Talk by famous personalities. One day work shop on productivity.

Awarding best productivity employee in both direct and indirect departments.

NATIONAL SAFETY DAY

Competitions such as essay writing, safety slogan and safety quiz were organised as part of the celebrations. Prizes to the winners were distributed by the General Manager and also by the chief guest. The main objective of this programme is to create safety awareness among employees. DISCIPLINE Office timings will be 7am to 3pm from Monday to Friday with Lunch Break 11am to 12pm.Saturdays and Sundays are holidays. A home page of HAL http://www.hal-india.com has been developed which shows the Current activities, research and development projects, news etc, of HAL.

4.6 ACHIEVEMENTS

HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfilment of Social Responsibilities.

HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for Corporate Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the International Information and Marketing Centre (IIMC)

HAL was presented the International - ARCH OF EUROPE Award in Gold Category in recognition for its commitment to Quality, Leadership, Technology and Innovation. At the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector Management, instituted by the Standing Conference of Public Enterprises (SCOPE).

Some of the prestigious Awards received during last 4 years are:

Conferred NAVRATNA status by the Government of India on 22nd June 2007

Raksha Mantri's Awards for Excellence for the years 2006-07, 2007-08 and 2008-09, HAL was conferred with the Raksha Mantri's Awards for Excellence as follows:

2006-07: i) Division/Factory Award : Transport Aircraft Division, Kanpur

ii) ii) Group/Individual Awards : Design Effort Awards for TARDC, Kanpur

2007-08 i) Institutional Award: Excellence in Performance

2008-09

Institutional Award: Best Performance in Exports HAL was awarded the MoU Excellence Award for the years 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09. HAL was awarded Performance Excellence Award-2009 (Organization) for the year 2008-09 by Institution of Industrial Engineering. Foundry & Forge Division, Bangalore was awarded International Diamond Star Quality Award during 23rd World Quality Commitment Convention 2009 held at Paris on 25th September 2009. HAL was awarded the Regional Export Award for Export Performance for the year 2007-08 by EPC India. The Award was presented on 21st February 2010 in Maldives. Foundry & Forge Division was awarded "Gargi Huttenes-Albertus Green Foundry Award" of the year 2008-09 by the Institute of Indian Foundry men. The Award was presented in the 58th Indian Foundry Congress held at Ahmadabad between 5-7 Feb 2010. HAL was awarded the "Supplier of the Year 2009" by Boeing, USA.

The Company scaled new heights in the financial year 2009-10 with a turnover of Rs.11, 457 Crores.

 ENGINEERING EXPORTS AWARD

Hindustan Aeronautics Limited has received the top exporter trophy and award from the engineering export promotion councils southern region. HAL has been receiving the top honor in the category of exporter of engineering consultancy, technical know-how and other engineering services in the southern region for more than a decade.

WORLD QUALITY AWARD

HAL has bagged the world quality commitment international platinum star award from business initiative directions (BID), Spain, during the 21st world quality commitment (WQC) convention held at Paris recently. The award was presented to HAL as an entity in recognition of the corporate commitment to quality, leadership, technology and innovation.

GOLDEN PEACOCK AWARD

The year 2005 has started off with an excellent beginning for RWR and DC. The centre has been awarded the golden peacock award for innovative product2004 by the Institute of directors (IOD), New Delhi in recognition of the efforts in certification of the civil variant of ALH. The award consisting of a trophy and certificate was received by shri. Yogesh Kumar, ED (design) and Dr.K.Balakrishna, General Manager (RWR DC) during the function held at New Delhi on 15th January 05. The annual award has been instituted to encourage total improvement in quality, management and governance both in manufacturing and service sectors and given to

an organization which shows a quantum jump in the exploitation of current technology to achieve maximum customer satisfaction at minimum cost. The award has worldwide recognition.

HAL RANKED 45TH IN THE WORLD

On 19th August 2005 the Hindustan Aeronautics Limited (HAL) has climbed 6 notches up to reach the 45th position in the list of top 100 defence companies in the world. The list, released by US-based defence news, has Lockheed martin in No.1 position followed by Boeing, Northrop Grumman, BAe system and Raytheon battling for the top 5 slots. The ratings are given based on the companys sales and turnover and HALs leap forward from the No.51 slot (last year) to 45 is being attributed to series of up gradation programmes and Helicopter marketing missions.

5. CORPORATE SOCIAL RESPONSIBILITY OF HAL HAL PUBLIC SCHOOL HAL offers education to the children of its employees at HAL PUBLIC SCHOOL .Hal Public School located in Bangalore, is established with a vision of providing quality education to students. The school is affiliated to Central Board of Secondary Education (CBSE). Hal Public School is dedicated to provide world class educational facilities to the students and offers education from classes Nursery - Class X . To ensure the complete development of the children, Hal Public School encourages the students to take part in various co-curricular activities held in school such as music, dance, arts and sports. The campus of Hal Public School is well equipped with the modern infrastructural facilities such as spacious ventilated class rooms with the latest teaching aids, rich library, state-of-the-art computer labs, science labs and play ground.

6. ORGANIZATIONAL STUDY

HAL (Bangalore complex) is spread over an area of about 2000 acres and engaged in the manufacturing of a variety of Aircraft, Engines, Helicopters, fabrication of light alloy structures for launching space vehicles by ISRO and centre associated equipment. It also carried out overhaul of many Aircrafts of different types of vintage and piston engines and jet engines. It also undertakes in small way auxiliary equipment for the lender class fabricator for the Indian navy and equipment for some other organization. For administrative control and effectiveness. HAL (Bangalore complex) is made into 8 divisions. They are: Airport service centre Aircraft Engine Foundry and forge Overhaul Aerospace IMGT

FLIGHT OPERATION DIVISION This division undertakes all functions related in experimental and production test flying and evaluation of test results. All the supporting facilities and common activities are grouped under production efforts and the operative division are grouped under the service divisions.

AIRCRAFT DIVISION

The aircraft division which for all practical purposes was formed as the door of the erstwhile HAL, before the formation of HAL, it is the pioneer in the field of aircraft manufacture and has many achievements to its credit, both in regard to license production and indigenous manufacture currently the division is engaged in the manufacture of jaguar Aircraft.

ENGINE DIVISION The Engine division in the existing premises started functioning around 1960; the engines manufactured under license include Orphus 701, 702 and 703, Artosuste 111, Dart 203/201 wetting house, Gnome, Adour and Garret. The division manufactured and supplied as ancillaries such as 750 K.V. turbo alternators, forced draught turbo blowers and main circulating turbo blowers and main circulating turbo pumps for lender class frights for the Indian navy. The first prototype of the Engine for pilots target Aircraft designed, fabricated and being developed by Engine design bureau was run on the test bed on 26th February 1984. A license agreement was entered with M/s. Inger soll and USA and German motors GT-220 gas turbines required for the pipeline project. Another license agreement has been entered with M/s.General Electric, US for the manufacturing of gas turbine (CE-DM2500) for ship propulsion.

FOUNDRY AND FORGE DIVISION This division supplies a large number of sophisticated radiological quality castings and forging to the internal production needs of the various division of HAL and also to some extent to the defence needs of the ordinance factories, HVF etc, and to civil customers. It has also undertaken substantial indigenization of literate

imported complicated castings and forging. It is also attached with a laboratory to carry out tests on the products produced there. It has successfully produced bimetallic sectors required for MiG-21 Aircrafts.

HELICOPTER DIVISION The helicopter division in its existing premises started functioning from July 1974. It is manufacturing 2 types of helicopters of French origin, namely Cheat (about-III) and cheetah (Sa315) and ALH.

OVERHAUL DIVISION The overhauling activities presently carried out by this division dates back to as early as 1942 when the erstwhile HAL, was handed over to the US Air force to enable them to undertake the repair and overhaul of various Aircraft Engines accessories radio and instruments connected with foreign military Aircraft based in India and these employed during world war-II in the eastern war theatre.

AEROSPACE DIVISION Aerospace division officially inaugurated by Air marshal MSD wollen chairman of HAL on 31st march 1988. This new factory has been established at a capital outlay of 25 crores. The division is catering the needs of space technology.

 DESIGN COMPLEX For purpose of effectiveness and administrative control all the design activities of HAL has been brought under the design complex. The Aircraft design bureau at Bangalore has successfully completed the development flights of the Ajeet Aircraft with the compliance of all requirements Kiran M/K II and HPT-32 were accorded approval certificate from directorate aeronautics. It has developed IJT (HJT-36) Aircraft which going under flight trials. MIG COMPLEX The Nasik and Koraput divisions are engaged with the manufacture of MiG Aircraft and different versions. The Air frame and assembly of Aircraft is done at Nasik division and the engines manufactured at Koraput division. These divisions started the manufacture around 1966. In the previous years, MiG-21, RL-21, M-21, BIS have been manufactured.

ACCESSORIES COMPLEX Accessories complex are at Lucknow, Korwa, Kanpur and Hyderabad divisions. The Hyderabad division was initially formed during 1965 for the manufacture of MiG avionics. Lucknow division was formed during 1975 for the manufacture of Aircraft instruments and accessories. The Hyderabad division manufactures MiG avionics, IFF equipments, sub-assemblies, ATC radars and various operation electronics components. The Lucknow division manufactures wheels of brakes, under carriage and hydraulic equipment, Air pressurization of conditioning equipment, panel instruments gyros, ejection seats and engine fuel

system.

KANPUR DIVISION This was earlier managed by IAF as one of their repair depot of Aircrafts. During 1961, it started manufacturing Hawker siddley HS-748 twin turbo prop 59 seater transport Aircraft for purposes of civil aviation to carter to the needs of Indian airlines and defence. It also manufactured Basant agricultural Aircraft.

RWDRDC

The Rotary Wing R & D Centre, with modern facilities and State of the art technologies, pear heads HAL's thrust towards excellence in the field of helicopter design. Expertise in the design and development of rotary wing aircraft has been built up over the last three decades by progressive induction of qualified designers, optimal design, prototype development, ground testing and flight testing.

The Centre is capable of undertaking challenging rotary wing and allied design tasks for Civil and Military applications. The Centre has also upgraded the Cheetah and Chetak helicopters to meet the requirements of Military and Civil customers. The objective of the Centre is to research, innovate and create designs for rotary wing aircraft to meet indigenous and global requirements. The Centre holds recognition and approval for research, design and manufacture of Civil and Military helicopters. Extensive facilities have been established for design, prototype fabrication, testing and analysis of rotary wing aircraft structure, high performance transmission system, integration of electrical system, avionics, engines

and flight control system. 4.2VARIOUS DESIGNS UNDER THE RWRDC DIVISION DETAILED DESIGN The centre has designed composite main and TAIL ROTOR blades, gear boxes and crash worthy. Fuselage for the ALH Light Weight Crashworthy Structure(composite and metallic) Composite Rotor Blades High Performance Mechanical Transmission Systems Mechanical Control Systems for Rotors Advanced Rotor Systems

ANALYSIS The centre has designed and tested wind tunnel models and flotation models. Dynamic analysis of components and structures of ALH have been carried out by FEM and FFT analysis methods. Estimation of performance, load and CG stability and control crash analysis of structure finite element modelling and analysis dynamic stress analysis vibration analysis

 SYSTEM DESIGN Each customer's unique specifications have been met in the ALH, in the design of advanced cockpit with multi function display (MFD) and night vision goggles (NVG) CAPABILITY, flight control systems, communication and navigation systems. The centre has carried out the integration of: state of the art cockpit display system avionics electrical system hydraulics/AFCS and flight control systems landing gear power plant and fuel system oxygen system

AIRWORTHINESS The centre is proficient in all aspects of certification and customer support which includes: Certifications of design to international military and civil airworthiness requirement. Reliability and maintainability analysis documentation to international standards defect investigation

 COMPUTING FACILITIES

Main frames, super minis, work stations and PC based systems Finite element analysis and optimisation of structure using NASTRAN, ANSYS and ALGOR Software for analysis of advanced composites and crash analysis Computer aided design and drafting of structural components and systems Modelling of structural parts for NC machining

MANUFACTURING

In addition to fully equipped prototype manufacturing facilities, the Centre has a Composite shop with autoclave, Blade mould fabrication, Impregnating machine, Water jet cutting Machine, NDT facility and is supported by the Helicopter division with full-fledged manufacturing, production engineering, quality and product support facilities.

GROUND TESTING

Universal Testing Machines Vibration Test Facilities Transmission Test Rigs for Gear Boxes, Flexible Couplings and Shafts

 Servo Controllers Main and Tail Rotor Whirl Towers Strain Gauging and Calibration Facilities Instrumentation and Data Acquisition Systems

FLIGHT TESTING

Flight Test Rigs and Calibration Facilities Multi-stream PCM, Avionic Bus Recording and Data Extraction L -Band Telemetry System with Real Time Display and Processing Facilities along with Hot Mike Link between Test crew and Monitoring Station Real Time Spectral Analysers and High Speed FFT Analysers Real Time Graphic Limit Exceedance Monitoring System Special On-board Test Facilities and Rigs like Trailing Static Bomb, Electrical AC / DC Loads, On-board Antenna Pattern Analyser and Photo Instrumentation System

6.1 ORGANIZATIONAL STRUCTURE OF THE COMPANY

The success of business system depends upon the soundness of its structure. The organization is one that enables people in groups to apply their brain and skill to meet the objectives of the company
CHAIRMAN

MANAGING DIRECTOR BANGALORE

MANAGING DIRECTOR DESIGN

MANAGING DIRECTOR ACCESSORIES

DIRECTOR FINANCE

DIRECTOR CORPORATE PLANNING

DIRECTOR PERSONNEL

AICRAFT ENGINE SPACE OVERHAUL SERVICES HELICOPTER FOUNDRY AND FORGE

AIRCRAFT DESIGN ENGINE DESIGN HELICOPTER DESIGN COMMON SERVICE

HYDERABAD LUCKNOW KORWA

FINANCE INTERNAL AUDIT COMMERCIAL LIASON OFFICER

CORPORATE PLANNING QUALITY ASSURANCE MARKETING

PERSONNEL ADMINISTRAT ION HAL STAFF COLLEGE SECURITY

WORK STRUCTUTRE IN HAL

ORDER FROM THE CUSTOMER

PRODUCT SUPPORT DEPARTMENT

PROGRAMING DEPARTMENT

PRODUCTION CONTROL

MANUFACTURING FACTORY

ASSEMBLY AND TESTING

TESTNG WITH EXTERNAL AGENCY

ORGANIZATION HIERARCHY IN EACH DIVISION

CORPORATE ORGANISATION STRUCTURE

LEAN MANUFACTURING HAL Aircraft division is trying to implement lean manufacturing. It would help in manufacturing good quality products in less time reducing cost. Lean manufacturing has been defined as a systematic approach to identifying waste (nonvalue-added activities) through continuous improvement by flowing the product at the pull of the not new and has been identified in many different ways and even with many different names. It has been called: flow manufacturing, Toyota production system, one-piece flow, just-in-time production and demand flow technology.

The waste defined in lean manufacturing are: Defects Waiting for raw materials or any work-in-progress products to pass through process. Unnecessary processing Over production Movement of labor and products Excess inventory Unused employee creativity Complexity

The methods adopted to implement lean manufacturing are: Kaizen rapid improvement process. 5s Total productive maintenance (TPM) Cellular manufacturing/ one-piece flow production system. Just-in-time (JIT) production/ Kanban. Six sigma Pre-production planning (3P)

DETAILED DEPARTMENTAL STUDY OF HINDUSTAN AERONAUTICS LIMITED

HUMAN RESOURCE DEPARTMENT

Emanating from the Company's Mission Statement, the strategic Human Resource Development (HRD) goal of HAL is to create an atmosphere of technological and managerial excellence to become a globally competitive Aerospace

Industry. With the changing environment, rapid technological changes characterised by a paradigm shift from licensed production to R&D based production duly balanced with co-development / co-production, technological upgradation etc., greater customer demand, focused diversification to civilian and export markets, the overall objective of the Human Resource Development plan is to build a vibrant and learning organisation, so as to meet the challenges of quality and excellence, recruitment and retention of competent human resources and develop high commitment and a sense of belongings to the Company. Accordingly, the Company's HR Vision, Mission, Objectives, Strategies and Policies have been identified and indicated as follows:-

VISION "To make HAL a dynamic, vibrant, value-based learning organisation with human resources exceptionally skilled, highly motivated and committed to meet the current and future challenges. This will be driven by core values of the Company fully embedded in the culture of the Organisation".

MISSION

Enable all those working for HAL to give their best to ensure their allround growth as well as that of the Organization

OBJECTIVES

To ensure availability of Total Quality People to meet the Organizational Goals and Objectives To have a continuous improvement in Knowledge, Skill and Competence

(Managerial, Behavioural and Technical) To promote a Culture of Achievement and Excellence with emphasis on Integrity, Credibility and Quality To maintain a motivated workforce through empowerment of Individual and Team- building To enhance Organizational Learning. To play a pivotal role directly and significantly to enhance Productivity, Profitability and improve the Quality of Work Life.

STRATEGY

To be in total alignment with Corporate Strategy Maintain Human Resource at optimum level to meet the objectives and goals of the Company Be competent in Mapping, Analysis and Up gradation of Knowledge and Skills including Training, Re-training, Multi-skilling etc Cultivate Leadership with Shared Vision at various levels in the Organization Focus on Development of Core Competence in High-Tech areas Build Cross-functional Teams Create awareness of Mission, Values and Organizational Goals throughout the Company Introduce / Implement personnel policies based on performance that would ensure growth, Rewards, Recognition, Motivation

FOCUS OF HR POLICY Competence building.

 Commitment. Motivation Employee relations In the backdrop of the above, focus of Human Resource Development initiatives at HAL emphasize on the following:

MAN POWER PLANNING Out sourcing of low tech and medium tech jobs. Fresh indication only in critical/highly specialized areas based on requirements due to increase in work load and super annulations profile. In the workmen Cadre, indication will be restricted to direct workmen only. Improving the existing qualification profile by focusing on induction to professionally qualified personnel and diploma holders.

Hence focus of recruitment would be to recruit people with combination of knowledge, skills, experience and attitude in line with organizational requirements through appropriate manpower plan both short term (contract appointments) and long-term recruitment programme. Training is one of the most important interventions for developing human resource. Hence, identification of training competency profile in terms of vision, mission of the company would be the strategic point of the training and development strategy of the company. The following objective has been set in this regard:-

 To provide training to all employees at regular interval in a plan period of 5 years. Training to become an integral component of individual professional evolution by: Updating knowledge to avoid obsolescence.
Enhancing professional creativity.

Enabling employees to shoulder higher responsibility. To create a business bias and strategic thinking to take up new business challenges (creation of centre of excellence etc).

The

goals

of

training

will

be

to

progressively

achieve

days

training/employee/year with a budget of 2% of annual wage bill. Keeping the organizational requirement and the above goals and the key focus areas of training: Tooling Quality Information technology Furthermore, to facilitate development of soft skills (change of mind set, managerial development etc). Training would be imparted on continuous basis. Tieups with centre of excellence like IITs, NDC, and FIAS France etc for training would be prime importance. The HR functioning is changing with time and with this change, the relationship between the training function and other management activity is also changing. The training and development activities are now equally important with

that of other HR functions. Gone are the days, when training was considered to be futile, waste of time, resources, and money. Now-a-days, training is an investment because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. If training is not considered as a priority or not seen as a vital part in the organization, then it is difficult to accept that such a company has effectively carried out HRM. Training actually provides the opportunity to raise the profile development activities in the organization. To increase the commitment level of employees and growth in quality movement (concepts of HRM), senior management team is now increasing the role of training. Such concepts of HRM require careful planning as well as greater emphasis on employee development and long term education. Training is now the important tool of Human Resource Management to control the attrition rate because it helps in motivating employees, achieving their professional and personal goals, increasing the level of job satisfaction, etc. As a result training is given on a variety of skill development and covers a multitude of courses.
CHIEF MANAGER (P&A) SENIOR MANAGER

MANAGER

DEPUTY MANAGER PERSONNEL OFFICER

ASST.PERSONNEL OFFICER CHIEF SUPERVISOR

SENIOR CLERK

CLERK

PERFORMANCE OF HR DEPARTMENT

CATEGORY REDEPLOYMENT APPRAISAL REVIEW

2008-2009 72 455

2009-2010 100 489 16 51 79 21

INTERNAL TRANSFER 10 RECRUITMENT PROMOTION SEPARATION 51 45 23

ROLE OF HRD PROFESSIONALS IN TRAINING This is the era of cut-throat competition and with this changing scenario of business; the role of HR professionals in training has been widened. HR role now is: 1. Active involvement in employee education 2. Rewards for improvement in performance

3. Rewards to be associated with self esteem and self worth 4. Providing pre-employment market oriented skill development education and post employment support for advanced education and training 5. Flexible access i.e. anytime, anywhere training. MODELS OF TRAINING Training is a sub-system of the organization because the departments such as, marketing & sales, HR, production, finance, etc depends on training for its survival. Training is a transforming process that requires some input and in turn it produces output in the form of knowledge, skills, and attitudes (KSAs).

THE TRAINING SYSTEM A System is a combination of things or parts that must work together to perform a particular function. An organization is a system and training is a sub system of the organization. The System Approach views training as a sub system of an organization. System Approach can be used to examine broad issues like objectives, functions, and aim. It establishes a logical relationship between the sequential stages in the process of training need analysis (TNA), formulating, delivering, and evaluating. There are 4 necessary inputs i.e. technology, man, material, time required in every system to produce products or services. And every system must have some output from these inputs in order to survive. The output can be tangible or intangible depending upon the organizations requirement. A system approach to training is planned creation of training program. This approach uses step-by-step procedures to solve the problems. Under systematic approach, training is undertaken on planned basis. Out of this planned effort, one such basic model of five steps is system model that is explained below. Organization are working in open environment i.e. there are some internal and external forces, that poses threats and opportunities, therefore,

trainers need to be aware of these forces which may impact on the content, form, and conduct of the training efforts. The internal forces are the various demands of the organization for a better learning environment; need to be up to date with the latest technologies. The three model of training are: 1. System Model 2. Instructional System Development Model 3. Transitional model

TYPES OF TRAINING Training is required for several purposes. Accordingly training programmes may be of the following types:

Orientation training: Induction or orientation training seeks to adjust newly appointed employees to the work environment. Every new employee needs to be made fully familiar with his job, his superiors and subordinates and with the rules and regulations of the organization. Induction training creates selfconfidence in the employees. It is also knows as pre-job training.It is brief and informative.

Job training: It refers to the training provided with a view to increase the knowledge and skills of an employee for performance on the job. Employees may be taught the correct methods of handling equipment and machines used in a job. Such training helps to reduce accidents, waste and inefficiency in the performance of the job.

Safety training: Training provided to minimize accidents and damage to machinery is known as safety training. It involves instruction in the use of safety devices and in safety consciousness.

Promotional training: It involves training of existing employees to enable them to perform higher-level jobs. Employees with potential are selected and they are given training before their promotion, so that they do not find it difficult to shoulder the higher responsibilities of the new positions to which they are promoted.

Refresher training: When existing techniques become obsolete due to the development of better techniques, employees have to be trained in the use of new methods and techniques. With the passage of time employee may forget some of the methods of doing work. Refresher training is designed to revive and refresh the knowledge and to update the skills of the existing employees. Short-term refresher courses have become popular on account of rapid changes in technology and work methods. Refresher or re-training programmes are conducted to avoid obsolescence of knowledge and skills.

METHODS OF TRAINING: ON-THE-JOB TECHNIQUES On the job techniques enables managers to practice management skills, make mistakes and learn from their mistakes under the guidance of an experienced, competent manager. Some of the methods are as: Job Rotation

It is also referred to as cross straining. It involves placing an employee on different jobs for periods of time ranging from a few hours to several weeks. At lower job levels, it normally consumes a short period, such as few hours or one or two days. At higher job levels, it may consume much larger periods because staff trainees may be learning complex functions and responsibilities. Job rotation for managers usually involves temporary assignments that may range from several months to one or more years in various departments, plants and offices. Job rotation for trainees involves several short-term assignments, that touch a variety of skills and gives the trainees a greater understanding of how various work areas function. For middle and upper level management, it serves a slightly different function. At this stage, it involves lateral promotions, which last for one or more years. It involves a move to different work environment so that manager may develop competence in general management decision-making skills. Enlarged and enriched job responsibilities: By giving an employee added job duties, and increasing the autonomy and responsibilities associated with the job, the firm allows an employee to learn a lot about the job, department and organization. Job instruction training: It is also known as step-by-step training. Here, the trainer explains the trainee the way of doing the jobs, job knowledge and skills and allows him to do the job. The trainer appraises the performance of the trainee, provides feedback information and corrects the trainee. In simple words, it involves preparation, presentation, performance, and tryout and follow up. Coaching:

The trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides the feedback to the trainee on his performance and offers him some suggestions for improvement. Often the trainee shares some duties and responsibilities of the coach and relives him of his burden. A drawback is that the trainee may not have the freedom or opportunity to express his own ideas. Committee assignments: Here in, a group of trainees are given and asked to solve an actual organizational problem. The trainees solve the problem jointly. This develops team work and group cohesiveness feelings amongst the trainees.

OFF-THE-JOB TRAINING It includes anything performed away from the employees job area or immediate work area. Two broad categories of it are: IN HOUSE PROGRAMMES These are conducted within the organizations own training facility; either by training specialists from HR department or by external consultant or a combination of both. OFF-SITE PROGRAMMES It is held elsewhere and sponsored by an educational institution, a professional association, a government agency or an independent training and development firm. The various off- the- job-training programmes are as follows:

 Vestibule training: Herein, actual work conditions are simulated in a

classroom. Material, files and equipment those are used in actual job performance are also used in training. This type of training is commonly used for training personnel for clerical and semiskilled jobs. The duration of this training ranges from few days to a few weeks. Theory can be related to practice in this method.
Role-playing: It is defined as a method of human interaction that involves

realistic behaviour in imaginary situations. This method involves action doing and practice. The participants play the role of certain characters, such as production manager, HR manager, foreman, workers etc. This method is mostly used for developing interpersonal interactions and relations.
Lecture method: The lecture is a traditional and direct method of instruction.

The instruction organizes the material and gives it to the group of trainees in the form of a talk. To be effective, the lecture must motivate and create interest among the trainees. An advantage of this method is that it is direct and can be used for a large group of trainees.\
Conference or discussion: It is a method in training the clerical, professional

and supervisory personnel. It involves a group of people who pose ideas, examine and share facts and data, test assumptions and draw conclusions, all of which contribute to the improvement of job performance. It has an advantage that it involves two way communication and hence feedback is provided. The participants feel free to speak in small groups. Success depends upon the leadership qualities of the person who leads the group.
Programmed instruction: This method has become popular in recent years.

The subject matter to be learned is presented in a series of carefully planned

sequential units. These units are arranged from simple to mere complex levels of instructions. The trainee goes through these units by answering questions or filling the blanks. This method is expensive and time consuming.

PERFORMANCE APPRAISAL Appraising people for meeting companys goal would be the prime focus of performance management. The new performance appraisal system based on work planning and commitment (mutually agreed tasks), self review and performance analysis, performance review and feed back would ensure that the focus would be on value adding activities rather than on routine activities which bear no relationship with organizational goals and objectives. Identification of low performers and resultant corrective action through out the company would be given priority. Similarly, faster career growth opportunity would be provided to high performers.

REWARD SYSTEM Focus of the reward system in the company would be to promote team work and culture of achievement and excellence in the organization. In addition to the mechanism of individual reward for making exemplary contribution in the key thrust area of the company for overall excellence and for desirable attributes like creativity and innovation. Coupled with above, schemes like Inter division competition and proposed Profit sharing schemes etc has been institutionalized in the company for the team reward.

PERSONNEL AND ADMINISTRATION DEPARTMENT Personnel and administration department functions as like the human brain, which

develops man power in the organization. It is one of the greatest untapped sources of opportunity presented by any function in management. It will give recognition, status and compensation that our economic system accords to those who make the most practical contributions in achieving the long-range objectives and solving the far reaching problems with which the president of India and other managers of a business are concerned. Personnel people are on the threshold of being of much greater service to the business and to the economy as a whole. Corporate executives are increasingly aware that long run success of any business depends on the calibre of its managerial personnel. Productivity and profits is the release and direction of the creative abilities and energy towards company's goal. The personal director's job is to organize and integrate all the units of the company so that each can make its maximum contribution to profits. Bringing personal administration closer to the president therefore is bound to resulting greater long-term company growth security and profitability. HAL stands tall with a versatile workforce of over 34000 trained, highly skilled and experienced personal who form its very heart and soul. Various sub departments of personal and administration Human resource development
Recruitment and promotion Welfare and establishment Legal and discipline and security

STRUCTURE OF PERSONNEL AND ADMINISTRATION DEPARTMENT

ADMIN FINANCE

EST-I

BUDGET

EST-II

BILLS

RECRUITME CENTRAL NT REGISTRY

CLAIMS CASH

PERFORMANCE OF P & A DEPARTMENT

QUALIFICATION PH.D P.G. (Engg) P.G.(Sc.) Degree In Engg Diploma In Engg. I.T.I./NACs
Inter/SSLC etc. Middle & Below

OFFICERS 01
38 03 331

WORKMEN 2 21 548 1567 26 32 2196

TOTAL 01 38 05 352 717 1622 28 32 2795

% 0.04
1.36 0.18 12.15 25.65 58.033 1.00 1.14

169
55

2 599

CUSTOMER SERVICE DEPARTMENT

All business enterprises in the world over have recognized the importance of their sales department and after sales servicing outlets to maintain the standard of excellence in the eyes of their customers. The marketing concept adopted is a customer need and want oriented by integrated marketing effort generating customer satisfaction as the key to satisfying organizational goals. The customer service department functions the above concept keeping in mind.

The basic objective of HAL, as enunciated by the review committee and approved by the government in May 1973 was amplified in 1983 to include the following: Our products are to be of the highest quality and reliability. The HAL corporate plan (1984-1994) issued in July 1985 has been redefined and the following clear-cut directive has been included in the list of objectives: To render prompt and efficient product support. The above objective being the corporate objective of HAL, the customer service Department objectives can be redefined as: In pursuit to customer satisfaction. To fulfill the above objective the slogan of customer service is to render the customer service: 25 hours in a day, 8 days a week and 53 weeks in a year.

Re-organization committee spelt out 3 main functions of customer service department.

Technical service (Aircraft) Spare support Training

HRD cell is responsible for the following activities Intake of project students Selection of employees to higher studies Document release Training needs Intake of research fellows Conducting invited talks Visits of dignitaries

MARKETING DEPARTMENT Locating customers: The products are developed for the Indian Defence sector as per their requirements through their HQ and hence there is no need to locate the customers. The ministry of Defence an order for the required quantity from the production agency through tender and the firm will supply them.HAL is not directly interfering in the above activity.

Qualifying customers: Since the product is used by services there is no need for qualifying the customers. Contacting the customers and sales: HAL has no role in contacting the customers and make the sales. Order filling: Order filling is not done in HAL. Payment collection: Since there is no sale y the organization, there wont be any payment collection.

INFORMATION TECHNOLOGY DEPARTMENT System and IT palys a crucial role in the development and maintenance works of HAL.It is the department which facilitates the smooth functioning of the administration as well as the research and development works undergoing in the organization.

DEPARTMENTAL STRUCTURE OF IT DEPARTMENT

DIRECTOR

ASSOCIATE DIRECTOR

GROUP HEAD

DIVISION HEAD

EMPLOYEES

FUNCTIONS OF THE IT DEPARTMENT Provide software and hardware packages for various departments Finance functions Administration Establishment Visitor management Gate pass monitoring system

SOFTWARE PACKAGES USED ORACL .Net ASP with SQL Server

OTHER DEPARTMENTS IN HAL PURCHASE DEPARTMENT Purchase department places the orders for the procurement of the items, raw materials and components which are required to produce an Aircraft. This department collects all the material procurement report from material planning department, selects the vendor and places the order accordingly. First the department decides which all materials to purchase. Then get proprietarycertificate for manufacture and ask for quotation. All the distributors quotation should be ceiled and sent. Then this department analysis the quotation and place order to the selected supplier. Then the supplier sends the acknowledgement. The average time taken to order is 90 days. If the change of supplier is needed then black listing of the supplier is done.

MANAGEMENT SERVICE DEPARTMENT Productivity monitoring. Management information systems. Industrial engineering. Reporting on adequacy of resources- men and machinery. Responsible for central control of all forms and formats used in the division. Manufacturing work planning in conjunction with chief of production. Execution of all manufacturing activities with in the division Efficient operation and use of all resources. Overall responsibility for tool planning, designs and manufacture of tools.

SAFETY DEPARTMENT This department provides the safety measures to employees. New rules and regulations are created to protect the employee from meeting with an accident. Terms and conditions to be followed by employees when working are given by this department. Safety of the employee is taken care of in this department.

MAINTENANCE DEPARTMENT The maintenance department shall ensure availability of suitable environment and utilities such as water, compressed air, electricity to the extent they affect product quality. The same shall be maintained through adequate housekeeping, provision of specific environmental control as required by the process specification and authorized work instructions. The continued suitability of equipment, machines and other installations shall be ensured through preventive maintenance. FINANCE DEPARTMENT

The finance and accounts department occupies a very important position in any organization as it has a role to play in almost the activities right from conceptualization of a project till its successful implementation for smooth running and thereafter.

FLOW OF WORK IN FINANCE & ACCOUNTS DEPARTMENT Functioning of the Finance & Account Department is divided into two parts:-

1. Personal Section 2. Official Section PERSONAL

TIME SECTION

PAY ROLL SECTION

CASH OFFICE

In Personal Section there are three departments Time Office, Payroll Section, Cash Office. Functioning of Personal Section starts with the Time Office. This section is responsible for calculating the attendance of employee and maintains records of it. Payroll section is concerned with salary, wages, and incentives correspondence with the Time Office. In Cash Office LTC reimbursement, encashment of leaves, medical payment is done by cash and cheque. During the service period certain amount is deducted from the salary of the employee for the future security of employee known as Provident Fund and Pension Fund.

FINANCE & BUDGET

OFFICIAL

(File Approval) IMM (Commercial Deptt.)

PURCHASE DEPTT.

(Purchase Order)

BILLS PAYABLE

(Payment)

COSTING & MATERIAL A/C

(Accounting Process)

BOOK KEEPING

(Book Entry)

BILLS RECIEVABLE (Sales)

In Official section there are eight departments. First of all in Budget Department budget made for different Projects according to the order received. After that in Finance Section scrutinizing function is performed this has a major role to play in capital and revenue expenditure decision in regard to purchase of material / stores / tools and other services. Then IMM gives the final approval and issues the purchase order. On the basis of this purchase order Bills Payment department do the payment to the suppliers of raw material, machinery and tools etc. when the raw material is transformed into the finished goods then the Costing & Material account do the costing of it to find the final cost of the finished product. This data is stored in the Book Keeping Section to know the financial position of the organization. When these finished products are sold to the customers Bills Receivable section receive the amount from customers. At last on the basis of outflows and inflows financial position of the organization, profit and Loss of the organization is counted.

FUNCTIONS & RESPONSIBILITIES:-

The Department is entrusted with the following functions and responsibilities: To ensure financial discipline as per guidelines of company. To advise management for all matters having financial implications including financial co-ordination before commitments are made. Regulation of Payments for supply and services including Salaries, Wages and other payments required for furthering legitimate objectives of the company. Compilation of Accounts and getting the same audited by statutory and Govt. Auditors. Compilation and co-ordination of Fixed Price Quotation for sale of companys product and services as per the norms of the company. Collecting dues on behalf of the company from the customers as well as other agencies. Financial Appraisal of the projects. To prepare Budgets and to exercise budgetary control for the utilization of available resources in the best possible manner. Interaction with various operating levels in the Division. Co-ordination and interaction with the Managing Director and Corporate office. To have an effective M.I.S. for prompt reporting to the higher management for decision making. Scrutiny and financial concurrence as per delegation of powers of proposals for: Capital expenditure. Revenue expenditure. Purchase of material/ stores / tools and other services.

 Man power requirements. Incentives. Waiver of dues to the company: write off losses. Cases involving relaxation of rules etc. Sales, lease or alienation of companys assets. Contracts entered into with suppliers. Estimates an award of contracts in respect of civil/electrical works/other works. Project reports. Fixation of rent and rates of recovery in respect of services/ suppliers/ disposals by the company.

Certification of availability of funds for procurement of capital equipments: for undertaking capital work.

SECTIONS IN THE DEPARTMENT Bills Payable - Inland Bills - Foreign Bills - Services And Civil Works Finance Payroll Cash Office Bills Receivable Cost Accounts Material Accounts Book Keeping

 Budget & M.I.S. Time Office Provident Fund BILLS PAYABLE SECTION This section is divided into three sub-sections Bills payable-inland. Bills payable-civil works. Bills payable-foreign.

The main functions are: Payment and accounting of advances to suppliers. Payment and accounting of advances to other vendors. Payment and accounting of final bills. Adjustment / recovery of advances. Accounting and pricing of receipt vouchers.

The major accounting registers and subsidiaries used are:-

Inland purchase journal. Inland service journal. Insurance claims journal.

 Sundry creditors journal etc.

BILLS PAYABLE - CIVIL WORK FUNCTIONS

Payment and accounting of advances. Payment and accounting of running bills to contractors. Payment and accounting of final bills. Adjustment/recovery of advances. Capitalization of building etc.,

The major accounting registers and subsidiaries used are: Work journal. Contractors ledger. Contracts register. EMD and security deposit registers. Advances payments register.

BILLS PAYABLE - FOREIGN FUNCTIONS Payment and accounting of advances to suppliers. Payment and accounting of services obtained from collaborators and others.

 Payment and accounting of final bills. Payment and accounting of contractual fees. Adjustment/recovery of advances. Maintenance of deferred liabilities.

The major accounting registers and subsidiaries used are: Foreign purchase journal. Goods-in-transit register. L.C. Registers. Advances to suppliers register. Deferred liability register. Bill of entry register. Foreign bills register. Insurance bill register.

FINANCE SECTION OBJECTIVES To ensure that the financial discipline is maintained in the division. To ensure that all expenditure is incurred with due regard to principles of financial propriety. To ensure that financial proposals are routed to the competent authority as per delegation / sub-delegation of powers so as to ensure compliance of the provisions of the Companies Act, the Memorandum and Articles of Association

of the company and the relevant rules and regulations of the company and the guidelines issued by the company. To ensure that the funds are available in the approved Capital & Performance Budget so as to cover the relevant proposals. To submit MIS reports to Corporate Office monthly. FUNCTIONS To scrutinize and give financial concurrence as per delegation of power for each proposal involving : - Capital expenditure - Revenue expenditure - Purchase of materials/ stores / tools and other services - Manpower requirement - Waiver of dues / write off of losses - Cases involving relaxation of rules etc.as per delegation of powers. - Sale, lease, alienation or disposal of companys asset. - Contracts entered into with suppliers / collaborators / sub-contractors. - Award of contract in respect of civil / electrical works / other works / plant orders. - Project Reports. Certification for availability of funds with reference to Capital & Performance Budgets and appropriation of funds.

PAY-ROLL SECTION

The pay-roll section is looking after the time office and pay-roll section. FUNCTIONS Employees gate passes are issued. Maintenance of leave records and feeding of attendance data to computer with Reference to the documents received. Disbursement of salaries and wages. Payment of/ recovery of advances. Recovery of dues from employees. Remittances of amounts recovered from employees to various agencies. Accounting of all pay-roll transactions.

The following major accounting registers and subsidiary ledger/ registers are maintained in this section: Leave record ledgers/register. Salaries and wages journal. Travel expenses journal. L.T.C expenses journal. Loan registers. Advance registers for 1. Travel advance. 2. L.T.C advance. 3. Salary advance. 4. Vehicle advance. 5. Cyclone/flood relief loan. 6. Special loan.

7. Conveyance reimbursement registers. Record of attendance. Maintenance of leave records separately. Feeding of attendance. Payment of salaries and wages.

CASH SECTION FUNCTIONS All amounts collected by different sections either from employees or from external agencies is sent to the Cash Office through Cash Credit Vouchers. Cash received in excess of the requirement, cheques, bank drafts, postal orders are deposited into the companys Bank account the same day for realization .Payment to the employees such as medical reimbursement, TA / DA advance, Misc. advance etc. are made through payment vouchers which are punched into the computer through online system. The cash office in turn after proper identification makes the payment through cash teller. For payment to outside parties cheques are made on the basis of remittance voucher sent by different section. These cheques are handed over to the Purchase department for taking necessary action / sent to central registry for dispatch to the concerned party. Entries are made every day on the basis of Cash Credit vouchers and remittance voucher and the cash balance is arrived at which is certified by the In-charge of cash office. Based on the analysis of the payment and receipt transactions computerized monthly Journal Voucher is prepared and send to the Book Keeping section for

the adoption. Preparation of the monthly Bank Reconciliation statements and the liaisoning with the bank authorities to check any discrepancy. Periodical physical verification of cash is done by systems audit representatives and by the internal auditors on the last day of the financial year.

BILLS RECEIVABLE SECTION FUNCTIONS The following are the functions of the Bills Receivable section;

Preparation and rendering of the invoices to I.A.F. in respect of the following activities in accordance with the guidelines laid down in the Government letter dated 30th Sept., 1997.

Manufacturing activities Repair and overhaul Supply of the spares against R.M.S. Deferred revenue expenditure The following documents shall be produced in support of the invoices rendered: * Initial advances are recovered on the basis of Customer order: Firm / forecast task given by the Air Force ; C.R.I. coordinated I.D.T.O. for the divisional task; R.M.S. order *Subsequent stages / final payment are claimed on the basis of the milestones achieved, dispatch advices, acknowledgement received from the

Air Force in the form Q423, Inspection Note certified by the C.R.I. about the progress of the work done in respect of the repairs and overhaul work the payment is strictly regulated based on the nature of work carried out e.g. Functional Test, Defect Investigation, and Zero Hour Servicing, Repaired, Overhauled. To prepare and render invoices to Non-IAF customers in respect of the following activities : Sales for Customer Financed Projected Development Supplies and services rendered to civil customers Supplies against R.M.S. orders from the Army, Navy.

To raise the debit on the other divisions as S.I.T. in respect of parts/ accessories supplied for the fulfilment in Engines/ Aircraft/ Helicopters manufactured by them for supply to customers. To claim payment from AO (DAD) on the basis of fitment details received from the user divisions. To submit invoices for reimbursement of royalty from Air Force and setup Sales for these claims and create claims receivable. COST ACCOUNTS SECTION FUNCTIONS To determine the rate of absorption / recovery of the labour and other overheads for recovering labour cost on the different jobs undertaken i.e. Man-

Hour rate computation. To accumulate the labour and overheads content of each activity Project-wise based on the evaluated L.T.B. generated by E.D.P. from the Work Orders / Time Dockets. To keep track of different jobs completed and jobs lying incompetent in different stages over a reasonable period of time and to co-ordinate with the concerned Production Controllers for justification for jobs lying unfinished beyond a reasonable period of time and to ensure their early disposition To review work orders on which no material / labour cost has been recorded and finding out the reasons for the same.

To get the W.I.P. statement as on 31st March from E.D.P. for all manufacturing components , sub-assembly W.I.P., assembly W.I.P. for physical verification by the concerned production shops.

To ensure that the valuation of W.I.P. has been done correctly keeping in view the percentage of completion of the job. To keep track of S.I.T. transactions with the different divisions. To keep record of all I.D.T.O. received and issued. To send debit advices to other divisions for the items dispatched against I.D.T.O. received from them. To accept the debit raised by other divisions for items received by division in respect of requirement raised by H.A.L. through I.D.T.O. To evaluate P.C. Memo for S.I.T. Issues, Russian consumption for overhaul and amortization of D.R.E. To work out the cost of sales and to reconcile the same with the Design Department for various Customer Financed Projects.

MATERIAL ACCOUNTS SECTION FUNCTIONS

 Maintenance of material ledger cards for all materials held in stores. Accounting of receipts of all materials by various classes and issues of all Materials. Quantity reconciliation of the bin card balances with material ledger balances. Accounting of linear-divisional transfers of materials and its reconciliation. Raising debt advices against contractors and others for materials issued on loan and follow-up for return. Scrutiny of slow, non-moving and redundant inventories.

ACCOUNTING PROCEDURE Accounting to the receipts of material by various classes and issues thereof to various work order and expense Accounts is done based on the following output statements received from computer/data processing section: Material issue analysis statement. Stock transfer/stock re-classification statement. Stock verification statement. Surplus/condemned stores statement.

BOOK-KEEPING FUNCTIONS Maintenance of journal and general ledger.

 Preparation of trial balance, profit and loss account and balance sheet. Maintenance of capital assets ledgers and location registers. Preparation of fixed assets and depreciation schedule. Furnishing data for determination of income tax liability. Disposal of surplus/condemned plant and machinery and other assets. Reconciliation of control accounts of other divisions/corporate office. Liaison with audit authorities.

The following major accounting registers and subsidiary ledgers/registers are maintained in this section: Journal. General ledger. Main assets ledger/register. Departmental/location assets register. Semi-perishable equipment registers. Miscellaneous equipment registers. Fixed assets disposal register. Control account advices register. Accounting procedure Accounting of capital assets. Accounting for depreciation. Maintenance of journal and general ledger. Preparation of trial balance, profit and loss account and balance sheet. Furnishing data for determination of tax liability. Disposal of surplus/condemned plant and machinery and other assets.

 Reconciliation of inter-divisional control accounts. Accounting of semi-perishable equipment/miscellaneous equipment.

WELFARE ACCOUNTS SECTION PROVIDENT FUND This section deals with the following aspects of the employees provident funds: Collection of from members of companys contribution of loan recoveries. Investment of provident fund accumulations in approved securities as per the stipulated pattern of investment. Payment of loans to members as per the rules. Remittance of family pension fund contributions to RPF commissioner. Remittance of inspection charges and the charges for EDLIS exemption. Remittance of LIC premium in respect of LIC policies assigned to the provident fund. Payment on final settlement of accounts. Filing of returns to RPFC. Maintenance of accounts/records of members furnishing of statement of accounts annually. Preparation of income and expenditure account and balance sheet of the fund and getting the same duly audited and approved. Declaration of interest rate on contributions and crediting the same to members accounts. The following major accounting registers and subsidiary registers are

maintained in this section: Cash book. Ledger. Investment registers. Life insurance polices register. Master ledger of members. Minutes book. Inspection book.

COSTING DEPARTMENT The costing department of HAL comes under the preview of the finance department and all its activities are supervised and contra versed by this department. The major duties and responsibilities of the cost department are : To ascertain in details the true cost of production for each operation. To collect necessary information to fix standard for a period. To measure actual results over the period. To compare actual results with the standards and to determine variances if any. To suggest reminded action to correct these variances. To provide detailed information to enable fixation of prices of products. To measure the efficiency of the workers. To provide detailed information to be unread for cost control and cost reduction. To set prices and analyze variance for performance. To prepare estimate and costs, assist in setting stores and providing detailed data for special cost analysis.

TIME OFFICE SECTION FUNCTIONS To issue the leave cards for the Calendar Year to all the employees / officers of the division. To maintain the leave ledger PB No. wise for all the personnel. Credit is given to each account according to his entitlement as per the guidelines laid down by the corporate office and the posting is done simultaneously from the attendance reports received from the concerned department. To verify the applications of V.L. encashment and advice accordingly to payroll section. To make calculations for payment of attendance bonus to Group A to Group D employees. To make the calculations for provisions of vacation leave to be accounted for in final accounts. To verify the applications for advanced vacation leave approved through P/A Department and making adjustment thereof in subsequent time period.

BUDGET IN HAL HAL budget are prepared once in a year that is some time before the commencement of the financial year. After preparation of different budgets. Those budgets are sent to the board of directors for approval, then implementation of budget monthly and actual will be compared with the budget and corrective actions are being taken from time to time. Advertisement and sales promotional expenditure are the

major expenditure of the company. The top management is assumed to have done much strategic planning which has set the stage for dynamic management planning on a continuous basis. Thus, as each new period operations approach it usually feels the need to apply this general knowledge of the business and its environment to the particular problems anticipated in the immediate future. The concept of a comprehensive budget covers its use in planning organizing and controlling all the financial and operating activities of the firm in the forthcoming period. With a forecast of sales as a foundation the budget for a manufacturing concern includes estimates covering such things as: Production. The use of materials. The purchase of materials. The staffing and cost requirement for direct labor. The incidence of operating expenses. The levels and values of the various inventories. The flow of cash. The need for borrowing. Expenditure for capital assets.

The budget culminates in a projection of the income statement and balance sheet at the end of the budget period for the company as whole.

FINANCIAL HIGHLIGHTS Hindustan Aeronautics Limited (HAL) has achieved sales turnover of Rs.11, 457 crores during the Financial Year 2009-10. The profit of the Company (Profit before Tax) soared to Rs.2, 688 crores.

The highlights are given below: (Rupees in Crores) PERFORMANCE OF FINANCE DEPARTMENT Particulars Sales VOP Profit before tax Profit after tax Gross Block 2008-09 10373 11811 2335 1740 2638 2009-10 11457 13490 2688 1967 2934 FACILITIES IN HAL HAL- Security Office This department is responsible for safety of property of HAL and employees working in the industry. HAL-transportation This department provides transportation for employees for reduced rate. It even provides transportation of school children of employees working in the company. Growth over Previous Year 10.45% 14.22% 15.12% 13.05% 11.22%

 HAL- canteen This department provides breakfast, lunch and dinner to the employees. There are 2 types of canteen namely, executive canteen and workers canteen. Executive canteen is for officers and workers canteen is for causal workers, project trainees and levels A, B, C, D and E workers. RESEARCH AND DESIGN CENTERS OF HAL

Aircraft research and development centre Rotary wing research and development centre Aircraft upgrade research and development centre Transport Aircraft research and development centre Engine and test bed research and development centre Strategic electronics research and development centre Aerospace system and equipment research and development centre Gas turbine research and development centre Central material and process laboratory and NDT centre

STRENGTHS, WEAKNESSES, OPPPORTUNITIES AND THREATS (SWOT) ANALYSIS

The SWOT analysis reveals that the organisation is blessed with rich resources.HAL is having plenty of qualified man power available in all branches. The strength of the organisation is the commitment of the workers. STRENGTHS Monopoly industry Government support(budgetary) Availability of skilled man power Absence of peers in some technical areas Involves working in the highly sensitive defence sector. HAL is premier defence production industry of the country catering gto the needs of IAF, army, navy and other civil customer. HAL has diversified into industrial and marine gas turbines business. Research and development centre of the division has designed and installed engines test beds for Russian and western origin aero engines.

 Hal has acquired the start of art technologies for manufacture, repair and overhaul of engines. Hal has been credited with ISO 9002 certificate and is ranked one of the top public sectors undertaking for sustained excellent performance and higher and the first 50 global defence companies.

WEAKNESSES High attrition rate Low fast track growth Slow down in decision making Lack transparent communication system HAL is a defence company it cannot carry its business on competitor's line it largely depends on its license in international business transactions Investment made in research and developments are inadequate Infrastructure facilities in the division are also indaequate Excess of manpower than required by the organisation

OPPORTUNITIES Over 50 yrs of experience in design is a plus for garnering out source projects. HAL can bid for mega out source projects

 Ability to diversify in to related fields as per company mission statement. Opening up of Indian defence sector to private sector Availability of total quality people helps meet the organization goals and objectives A culture of achievement and excellence can be promoted with the integrity, quality and credibility New initiatives in research and development like ALH (Advanced Light Helicopter), LCA (Light Combat Aircraft), MIG and jaguar update programs provide scope for further expansion of the business.

THREATS Self reliance in manufacturing industries. Poaching of trained employees by private organizations. Tardy implementation of up gradation of technological know-how's Lack of awareness on knowledge sharing techniques. Lack of proper knowledge management system in the organization. HAL is facing competition with the international market because of licences The licences agreement has restricted the company to enter into business with the other countries without the approval of its licences. The company has to take approval to make changes in the engines designed by its licences which involve huge expenditure.. The company depends on other countries for its raw materials.

FINDINGS The organization runs on strict security norms. Utmost confidentiality is maintained in all spheres of activity in the organization. The commitment of the employees, immense talent and dedication to the work is the success mantra of HAL.
There exists very good relationship between the employees, suppliers,

distributors, management. There is no flexibility of timing. There were clear defects among the lower cadre people due to lack of training.
Discipline was not properly maintained in the lower cadre as they do not

follow the office timings.

SUGGESTIONS Discipline and motivation is to be strengthened in the lower grade.

 More educational avenues to be created for the lower cadre employees.

Flexible timing can be introduced for all the employees. More training programmes should be provided to the employees.

COMMUNICATION SYSTEM AT HAL

UPWARD
Direct meeting Complaint/suggestion box system INTER OFFICE NOTE LOCAL INTRANET

DOWNWARD
MDs Letter MDs Meet Circulars Telephone E-mail

HORIZONTAL
Direct communication TELEPHONE INTER OFFICE NOTE

The company follows upward, downward and horizontal communication systems The downward in formations which are given by the top authorities to the subordinates are communicated through circulars, notice, and telephone and in person. The company follows the LAN and WAN communication models. The LAN system stands for Local Area Network and it is used to communicate orders, policies and decisions to the local network which is confines to a particular office/department.WAN stands for Wide Area Network where all the policies, decisions and orders are communicated all over the country in a wide range. The policy decisions are taken at the corporate level and it is communicated through LAN/WAN model

CONCLUSION

The study was aimed to understand the organisation as a whole, organisational structure, the products, Research and Developments, various functional departments and its role for the smooth running of the firm. The study reveals the proud contribution of HAL in the areas of the Defence and Forecasts a bright future in scaling more heights in the country's defence front.

The organisation runs on uncompromising and strict security norms. Utmost confidentiality is maintained in all spheres of activity in the organisation. The SWOT analysis reveals the Strengths, Weaknesses, Opportunities and Threats of HAL.

The commitment of the employees, immense talent and dedication to the work is the success mantra of HAL.

REFERENCES

Documents and other bound volumes Various sites at internet