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COMPARATIVE STUDY OF EMPLOYEE WELFARE SCHEME
BETWEEN HERO MOTORS
&
OTHER COMPANIES
Summer Internship Report Submitted in Partial Fulfillment of
B.tech+MBA Programme
2010-2015
Name of Guide- Dr. Sharadendu Pandey
Name of student- Deepak Dahima
(10/iee/016)
School of Management
Gautam Buddha University
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Gautam Buddha Nagar-201 308
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A REPORT
ON
COMPARATIVE STUDY
OF
EMPLOYEE WELFARE SCHEME
BETWEEN
HERO MOTORS
& OTHER COMPANIES
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Project Title - COMPARATIVE STUDY OF EMPLOYEE WELFARE SCHEME
BETWEEN HERO MOTORS
&
OTHER COMPANIES
Summer Internship/Project Report Submitted in
Partial fulfillment of B.tech + MBA Programme
2014-2015
By
……….Deepak Dahima…….
……….10/iee/016…….
School of Management
Gautam Buddha University
Gautam Buddha Nagar- 201 310
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ACKNOWLEDGEMENT
This report has been made possible through the direct and indirect cooperation of various
persons for whom I wish to express my appreciation and gratitude.
First & foremost, my intellectual debt to my Faculty Guide
Dr. Sharadendu Pandey, who has continuously provided his valuable suggestions and
guided me to make this project report more useful.
DEEPAK DAHIMA
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Executive summary
The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of
the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or
benefits in the event of sickness, accident, disability, death or unemployment, or vacation
benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or
prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor
Management Relations Act, 1947 (other than pensions on retirement or death, and insurance
to provide such pensions).''
Welfare facilities include toilets, washing facilities, rest and changing facilities, personal
security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities,
personal growth facilities like library facility; training facility, Safety and Security measures,
adjustable working shift and timing, festival grants, transportation facility, housing facility
etc.
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TABLE OF CONTENTS
1. Acknowledgement
2. Executive summery
3. Introduction
• Definition of Employee Welfare Schemes
• Facilities cover under Employee Welfare Schemes
• Need of Employee Welfare in organization
4. Company Profile
• Overview of the company
• History of Hero Motors
• Evaluation of Hero Motors
• Mission & Vision of Hero Motors
• Values of Hero Motors
• Corporate Objective of Hero Motors
• Organization Structure of Hero Motors
5. Objective of the research
6. Research Methodolo
Sample
• Instrument used
• Data collection method
• Project evaluation method
7. Employee Welfare at Hero Motors
• Loan Policy
• Canteen facility
• Medical facility
• Uniform provided
• Transportation facility
• Training and developmento
• Telephone allowances
• Awards
• Gifts and events
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8. Data Analysis
• Comparison between companies regarding training cost
• Comparison between companies regarding loan facility
• Comparison between companies regarding canteen
• Comparison between companies regarding medicine cost
• Comparison between companies regarding mobile allowance
• Comparison between companies regarding Gift cost
• Comparison between companies regarding Break time
9. Conclucion
10. Suggestions & Limitations
A) Suggestions for Hero Motors
B) Limitations of project report
11. Questionnaire
Sample of questionnaire
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Project Title : Comparative Study of Employee Welfare Scheme
between Hero Motors Limited and Other Companies
Location : Hero Motors Ltd.
Company Profile:
Hero Motors is a part of the HERO GROUP, which is a multi billion dollar group with
diverse interests in manufacturing, engineering design, corporate services, and value added
engineering. Hero Motors is an integrated engineering services provider that has high quality
processes and a world-class technical team in place to deliver the best solutions in
engineering.
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Employee Welfare Scheme– Objective of the Project:
The purpose of this report is to evaluate the on going activities carried out under “Employee
Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to
competently support the organization to develop and administer effective employee welfare
and ensure continuous commitment from employee part for achieving the ultimate goal of the
organization.
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RESEARCH METHODOLOGY:
• Selecting the companies for the purpose of comparison.
• Gathering information regarding employee welfare of those companies.
• Using questionnaire for collecting information
• Analysing the information for fulfillment of report objective.
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EMPLOYEE WELFARE
DEFINITION:
The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of
the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or
benefits in the event of sickness, accident, disability, death or unemployment, or vacation
benefits, apprenticeship or other training programs, or day care centers, scholarship funds,
or prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor
Management Relations Act, 1947 (other than pensions on retirement or death, and insurance
to provide such pensions).''
Welfare facilities include toilets, washing facilities, rest and changing facilities, personal
security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities,
personal growth facilities like library facility; training facility, Safety and Security measures,
adjustable working shift and timing, festival grants, transportation facility, housing facility
etc.
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EMPLOYEE
WELFARE
SCHEMES
Personal
Growth Facility
Working
Condition
Recreational
&
Refreshment
Facility
Medical
Facility
Canteen
Facility
Transportatio
n Facility
Safety &
Security
Leave &
Holiday
Facility
Loan
Facility
Other
Facilities
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Different facilities cover under Employee Welfare Scheme:
PLANT TIMING OFFICE
ENVIRONMENT ENVIRONMENT
1. Shifts 1. Ventilation
2. Overtime 2 .Air-conditioned
3. Breaks 3 .Lighting
. 4. Seating arrangement
5 .General Cleanliness
6. Humidity
7 .Personal Laptop
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Working Condition
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TRAINING EDUCATIONAL PERFORMANCE
FACILITY FACILITY MEASURE
1. Internal Training 1. Library 1. Regular & effective
2. External Training 2.Debating Union appraise
3. Workshop & Seminars 3. Worker’s children’s 2. Monetary/ Non
schools monetary awards
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Personal Growth Facility
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FIRE ARMED SECURITY TECHNICAL MEASURES
PROTECTION GUARD PROTECTION FOR
ACCIDENT
PROTECTION
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Safety & Security Measures
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CLUBS EVENTS
1. Gymnasium 1. Picnic
2. Creches 2. Factory Foundation day
3. Recreational Club 3. Cultural evenings
4. Festivals celebration
SANITATION OTHER FACILITIES
1. Toilets 1. Rest room
2. Wash-basins 2. Tea & Snacks at breaks
3. Water & Waste disposal 3. Water cooler
4. Dustbins & Spittoons
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Recreational Facility
Refreshment Facility
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DISPENSARY INDIVIUAL TREATMENT
1. First-Aid 1. Hospital & Medicine cost
2. Regular Doctor for accidental case
3. Medicines for minor injuries & illness 2. Free medical check-up
UNIFORM CHILDREN FESTIVAL HOUSING TRAVELLING
SCHOLARSHIP GIFTS
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Medical Facility
Other facilities
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Need for Employee Welfare:
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Employee
Welfare
Schemes
Intellectual, physical, moral,
social & economical
Ensure
continual
commitment
of employee
Fulfilling Governmental
Laws, Statutory Provisions
or required by customs of
the industry & country
Create &
improve
organizational
image
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COMPANY PROFILE
OVERVIEW OF THE COMPANY:
Company Name: HERO MOTORS LIMITED
• Company Address: 10th
Km Stone, G.T. Road
Dadri, Distt- Gautam Budh Nagar, U.P.
• Industry: Automobile Spareparts
• Product range: Gear block, Cylinder block, Swing arm, Main stand, Side stand,
Chain case, etc.
• Mother concern: HERO GROUP OF COMPANIES:
• Hero Cycles - Founded in 1956, largest manufacturer of cycles in the world,
manufacturing over 6 million cycles per year.
• Hero Motors - Auto component outsourcing / scooter & Step through maker &
parent company of Hero Global Design.
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• Hero Global Design – Design/ Engineering/ Prototyping and Manufacturing
support services.
• Munjal Showa - Joint Venture with Showa, Japan largest
• manufacturer of shock absorbers in India
• Sunbeam Auto & Munjal Castings - Aluminum die casting Unit
• Hero Mindmine – BPO training services, BPO services; Call Center
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All India Offices:
I) Corporate Office: 601, International Trade Tower, Nehru Place, New
Delhi- 110019
II) Plant / Works: 10th
Km Stone, G.T.Road,
Dadri, Distt- Gautam Budh Nagar, Ghaziabad (UP)
III) Foundry Project: Plot No. 192, Sector-4, Manesar, Gurgaon
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ACHIEVEMENTS:
• Green Pioneer Award - 2013
• Asias Third Best Employer Brand Award-2012
• NDTV Profit Car & Bike Awards 2010
• Company of the Year awarded by Economic Times Awards for Corporate
Excellence 2008-09
• The NDTV Profit Car India & Bike India Awards 2007 in the following category:
Overall "Bike of the Year" - CBZ X-treme
• Adjudged 7th Top Indian Company in 2006 by Wallstreet Journal Asia (Top Indian
Two Wheeler Company).
• Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by
CNBC in the 'Automobiles' category.
• Hero Group ranks amongst the top 10 Business Houses comprising 18 companies,
with an estimated turn over of US$ 1.8 billion during the fiscal year 2003-2004.
• HSBC-Merril Lynch has estimated Hero Group would be among the Top Value
Creator in 2001-2004.
• Hero Honda Motors was ranked 3rd
amongst top Indian companies Review 2000-
Asia’s leading companies award (2003) by Far Eastern Economic Review.
• Hero Cycles Limited is a Guinness Book Record holder since 1986 as the wolrd’s
largest manufacturer of bycycles, with annual sales volume of 5.2 million bicycles in
FY 2004.
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• Hero Motors Limited was awarded as Highest Automobile Exporter in the year of
1995-1996 & 1996-1997.
• Hero Motors is Certified by ISO 9000 in the year of 2002.
HISTORY OF HERO MOTORS:
• Hero, the brand name synonymous with two-wheelers in India, is a multi-unit, multi-
product, geographically diversified, Group of Companies - the reflection of the steely
ambition and indomitable grit of the Munjal Family. Munjal Brothers, the founders of
the Hero Group, started out in 1960’s in business of bicycle components, and then
complete bicycles. Like every success story, Hero's saga contains an element of spirit
and enterprise; of achievement through grit and determination, coupled with vision
and meticulous planning.
• The company incorporated its business with the name of Majestic Auto Limited in
1978. It was established at Ludhiana by Mr. O.P.Munjal, chairman of the coimpany.
Later in 1988 another production plant, namely Majestic Auto Limited-II was
established by Mr. Pankaj Munal at Ghaziabad. In 2005 the company has demerged
and the second plant of Ghaziabad was renamed as Hero Motors Limited. The plant
area of Hero Motors spread over 30 acre land. HML has another small plant of 20
acre land at Manesar, near Gurgaon where they produce Ferrous casting products for
their customers.
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• Hero Motors (and subsequently Hero Global Design), set up in 1988 was originally
focused solely on the two-wheeler market. The company manufactured two stroke
mini motorcycles under the HERO PUCH brand, two stroke scooters under the
HERO WINNER brand and four-stroke step through motorcycles under the HERO
SMART and HERO STING brand.
• The Automobile and the Automobile Component Industry is one of the largest
growing in India. Hero Motors considers this to be a focus area. Since 2004, based on
a new strategic initiative, Hero Motors is nurturing the integrated engineering service
provider business. HML now supplies automotive spare parts like gear block to
Austria,Cylinder block to L.G. and Swing arm; Main stand; Side stand; Chain case
etc to Hero.
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EVALUATION OF HERO MOTORS:
1988 - Set up to manufacture mopeds in technical collaboration Styer Daimler Puch,
Austria
1993 - Became India’s largest exporter of two wheelers
1998 - Started development of four stroke engines in technical collaboration with Briggs &
Stratton, USA
- Formed HERO GLOBAL DESIGN
2001 - Launched HGD designed specialized moped – HERO POWER range
2002 - Launched India’s first four stroke moped – HERO SMART
2003 - Launched motorcycle –HERO- STING Entered into agreements with ROTAX for
engine & part development
2004 - Company focused as a “integrated engineering solution provider”
2005 - First supplies to ROTAX (Austria) and a World renowned Consumer Goods
Manuacturer - Ferrous Casting Plant being set up at Manesar
2011- New licensing arrangement signed between Hero and Honda (Hero Honda is renamed
as Hero)
2012- Migration of all products to Brand Hero and Strategic partnership with Erik Buell
Racing (EBR) of USA
2013- Neemrana Plant Foundation Stone laid
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- 50 Million cumulative 2 wheelers production
- Global Parts Centre Foundation Stone laid
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VISION
The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new
identity, reflects its commitment towards providing world class mobility solutions with
renewed focus on expanding company's footprint in the global arena
MISSION
Hero Motor’s mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it
converts its customers into its brand advocates.
The company will provide an engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and enduring relationships with its
partners
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OBJECTIVE OF THE RESEARCH
The purpose of this report is to evaluate the on going activities carried out under “Employee
Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to
competently support the organization to develop and administer effective employee welfare
and ensure continuous commitment from employee part for achieving the ultimate goal of the
organization
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RESEARCH METHODOLOGY
• SAMPLE
• ESCORTS TRACTOR LTD.
18/4 Mathura Road- Faridabad
• MOTHRSON AUTOMOTIVE TECHNOLOGIES &
ENGINEERIMG LTD.
D-14, Sector-59, Noida
• KENWOOD NIPPON
D-8, Sector-10, Noida
Instruments Used:
• Questionnaire
• Data collection method
• Interview method
• Details of data regarding cost from files of Finance Department.
• Personal observation of every welfare facility
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PROJECT EVALUATION METHOD:
• Sort out the feedback of different companies about what they give to their employees
and also sort out the information of benefits given by Hero Motors.
• Summary of Feedback for Future Planning from responses.
• Analysis of surveys through statistical tools, charts and evaluation of the study.
• Analysis of the information gathers from other companies and makes comparison of
total
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EMPLOYEE WELFARE AT HERO MOTORS
• Employees are always important in HERO MOTORS. HML wants employees who
can carry out their missions and fulfill their roles, with the aim of contributing to the
enhancement of the Company’s enterprise value, thereby winning society’s trust.
• In order to have a solid organization which attracts and inspires employees like these
to actively contribute to the Company with their best efforts, skills and abilities. Hero
Motors is endeavoring to establish effective systems for performance evaluation and
compensation, human resources development, and staff deployment.
• Furthermore, HML welfare and benefits system is designed to provide a comfortable
environment in which employees can easily adjust. While providing a workplace
where employees can focus on their work without distractions, the welfare and
benefits system also helps keep them in the best of health, and serves as a safety net,
giving employees a stronger feeling of security.
LOAN POLICY:
Hero Motors provides its employees two types of loans- Personal loan for any personal
purpose like marriage, higher education, housing etc and Vehicle loan. Total 10 loans
approved in a month in “first come first serve” basis. For lower level employee there is no
interest charged up to Rs. 5000/- and recovered in 10 equal monthly installments from the
employee’s salary, above this amount 14% interest are charged/ year and recovered in 20
EMI. For higher level employee up to Rs.15000/- is interest free above which 14% interest
are charged.
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As vehicle loan, 75% of the total cost paid by company as loan in 5% interest and recovered
in 60 EMI including interest. Car loan available for managers and above only.
Amount given as loan at different levels:
G.M and above - 2 Lac
A.G.M I - 1.5 Lac
A.G.M II - 1.25 Lac
Managers - 1 Lac
CANTEEN FACILITY:
Canteen is not only a place for taking lunch or dinner. It is a place where employees of one
department can meet with employees of other departments and can make some conversation
that helps to improve the informal communication flow within organization. In Hero Motors
a specious and well-equipped canteen is there facilitated with every modern facility like
comfortable seating arrangement, water cooler and washing facility.
Hero Motors provides canteen subsidies for employees; lunch coupon distributed at Rs.14/-
and Rs. 3/- is paid by company as subsidy and at breaks two times free teas are provided.
Employees working for overtime above 4 hours are entitled for free lunch. Summer Trainees
are provided free lunch during their training periods. Except these meal allowances for lunch
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and snacks are also given to employees if they are outside the plant for any official purpose
during lunchtime. Hero Motors provides free lunch to the visitors and guests (like corporate
guests) who come for any official purpose.
COST OF LAST FINANCIAL YEAR BEHIND CANTEEN
Total meal allowance (on duty) paid to employees: Rs. 1, 96,800/-
Canteen bill (including pantry cost) : Rs. 22, 43,200/-
Refreshment & tea, snacks expenses : Rs. 6, 50,000/-
MEDICAL FACILITY:
At Hero Motors there is a dispensary where doctor visits regularly, daily 1 hour a doctor
attends patients. All time first-aid facility and medicines for any minor illness are available.
For any major accident or in any serious case patients are admitted to near by hospitals or
nursing home. The cost of medicines, rent of bed and others are given by company. Hero
Motors has an ambulance for shifting purpose in case of serious illness.
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MEDICAL COST OF LAST THREE FINANCIAL YEARS:
Year
Cost for
medicines
Cost behind
employees
treatment
Doctor's
fees
April 2013-
March 2014 59,700 39,000 72,000
April 2012-
March 2013 12,000 97,400 60,000
April 2011-
March 2012 23,300 4,50,000 60,000
Hero Motors gives its employees medi-claim facility, under which the policy premiums for
employee are given by Hero Motors and policy premium of employee’s family members are
paid by employee.
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MAXIMUM AMOUNT PAID AS PREMIUM AT DIFFERENT LEVELS:
MD and Family – 5 Lac
General Manager I/II – 3 Lac
Assistant General Manager I/II -2 Lac
Manager I/II, Assistant Manager I/II- 1.5 Lac
Executive I/II/III -1 Lac
Supervisor – Rs. 50000/-
Workmen/ Driver/ Peon- Rs.15000/-
Uniform Provided:
To create a sense of unity, proud feelings for organization and a sense of belongingness it is
very necessary for every organization to create and maintain an identity. For this purpose
Hero Motors provides uniforms for all its employees from workers to high-level managers..
Sweaters and jackets are given alternatively in every winter.
As per requirements of the job, personal protective equipments like masks, gloves, safety
shoes, dangri suits (for paint shop and machine shop workers), caps etc are also provided to
workers.
COST OF UNIFORMS OF LAST THREE FINANCIAL YEARS:
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Year
Cost of
pants,
shirts, and
stitching
cost
Cost of
woolen
clothes
Cost of
personal
protective
equipments
Cost of
leather
shoes and
socks
Cost of other
accessories
April
2013-
March
2014 3,72,500 2,51,000 1,47,500 1,83,000 1450
April
2012-
March
2013 4,02,300 40,800 60,600 1,71,600 1840
April
2011-
March
2012 3,86,000 61,500 36,000 60,000 1350
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Transportation facility:
Providing transportation facility is a very important aspect of any organization to its
employees. Because if the way to reach the organization is not very convenient and the
employee has to face lots of problems during every day journey it can affects the
organization in a very large way. It may results in late comings that hamper organizational
culture and also the productivity, again facing problems in daily up-down may irritate
employees and they may feel to switching the job means, increasing employee’s
dissatisfaction and lost of good employees which can be a severe problem for any
organization.
Hero Motors has three buses. The buses cover different routes for their workers coming from
different places.
COST BEHIND BUS SERVICE IN LAST FINANCIAL YEAR : RS.
9,65,000/-
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Training and development:
Training is way to make sure that employees have the right skills to effectively operate
various machines and manage various challenging situations. Employer gives training to
his/her employees so that employees can do the same job in some better way, which
ultimately increase the quantity of production and also the quality of work. It is basically
given by every organization for technical up-gradation of the job where as development
program is carried out with the view to explore and upgrade the qualities of employee’s inner
quality. Development program is very necessary for the personal growth of employees.
Hero Motors gives special emphasize on this aspect for its employees. In Hero Motors
‘Employee Training Programs’ are carried out by a group of people of Quality Department.
Hero Motors provides good scopes for employees to learn from Internal as well as External
Training. Employees can attend Seminars and Workshops arranged by other organization and
company bears entry fees for that. Hero Motors invites/hires external trainer from outsides
for ‘Worker’s Training’. Staff training programs also carried out as per training needs and
plans. The training programs are carried out in two basic ways- a) On the job training and b)
Off the job training. Off the job training is give using different methods like class room
training, group discussion etc. After training, trainees are evaluated and ranked by the trainer
to judge and compare their qualities and again a feed back form filled by trainees to welcome
their suggestions.
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Cost of last three financial years behind training and development
programs:
Years
Cost for
Training
Cost of
Seminars &
Workshops
Total Cost
March'2013-
April'2014
3,86,400 63,800 4,50,000
March2012-
April'2013
3,34,300 21,700 3,56,000
March'2011-
April'2012
5,89,000 37,600 6,26,600
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Telephone Allowance:
Today’s business world is very dynamic in nature and it demands proper and quick execution
of any work. Managers have to update their information base in every moment and have to
take decisions in challenging situation. For this it is very necessary to stay connected with
their colleagues and boss within and outside organization also. Now a days most of the
companies give mobile and telephone allowances to their managers.
Hero Motors grants mobile allowance from supervisor level to highest level of management
and paid for residential telephone bill only to top-level management.
Amount given as mobile allowance at different level:
Vice president and above : Rs. 3500/- per month
General manager I / II : Rs. 2200/- per month
Assistant General Manager, Manager : Rs. 1500/- per month
Assistant manager I / II : Rs. 1000/- per month
Executive I /II /III, Supervisor I/II/III : Rs 600/- per month
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Motivational Tool: Awards :
• Motivated employees can give two times extra than a dissatisfied employee.
Rewarding employees is that simple tool.
• Award is a way of appreciating one’s job from management side; it is a proof or
formal recognition. Award is a tool of motivating employees to do the job with new
zeal, enthusiasm, hard work and sincerity.
• Hero Motors rewarding employees for long service and retirement. The “Long
Service Awards” are given for 5years, 10years, 15 years and 20 years. For 10 years
service “Two-in-One Music System”, 15 years “CD Player” and 20 years “gold chain
of 8 gms” are given by the company. There is an award given once in a year as
“Regular Attendance Award”.
Gifts and Events :
Celebration of various festivals and events are necessary to welcome a wind of relieve so that
employees can start their job with a new passion. Again these types of celebrations give
employees a chance to meet each other in an informal atmosphere and also a chance to show
their other creative talents. Although in Hero Motors these types of celebrations are not done
in very frequently, still some special days are celebrated by Hero Motor’s employees. The
“Foundation day” is celebrated every year, on that day puja or hawan are done in the
morning. After that, eminent personalities give their speeches and provide snacks by
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company. Special lunch is provided in all special occasions. “Independence Day”, “Republic
Day” is also celebrated in Hero Motors.
Hero Motors gives its employees Diwali Bonus & gifts with sweets in every year.
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DATA ANALYSIS
Comparison between companies regarding training cost:
Companies Total Cost
HML 450000
ESCORT 500000
MOTHERSON 200000
NIPPON 60000
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0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
Training Cost
450000
500000
200000
60000 HML
ESCORT
MOTHERSON
NIPPON
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Training Cost incurred behind per employee in a year in different
companies:
0
100
200
300
400
500
600
700
800
900
1000
Cost/employee/year
1000
143
348
30
HML
ESCORT
MOTHERSON
NIPPON
Companies Cost/employee/year
HML 1000
ESCORT 143
MOTHERSON348
NIPPON 30
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COMPARISON BETWEEN COMPANIES REGARDING LOAN
FACILITY:
Companies Maximum loan amount
HML 20,0000
ESCORT 50,000
OMOTHERSON200000
NIPPON 50,000
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
200000
50,000
200000
50,000
HML
ESCORT
MOTHERSON
NIPPON
Maximum number of loan given by companies in a month:
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Hero Motors Limited : 10
Escort Tractor Limited: 15
Motherson Automotive Engineering Technologies: 25
Kenwood Nippon : 5
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Comparison between companies regarding canteen subsidy:
Companies Canteen Subsidies
HML 3
ESCORT 7.25
MOTHERSON12
NIPPON 0
O
Canteen Subsidies
3
7.25
12
0
0 5 10 15
HML
ESCORT
MOTHERSON
NIPPON
Comparison between companies regarding medicine cost:
Companies Medicine
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Cost/employee/year
HML 120
ESCORT 60
MOTHERSON104
NIPPON 61
120
60
104
61
Medicine cost/employee/year
HML
ESCORT
MOTHERSON
NIPPON
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Comparison between companies regarding mobile allowance:
Companies
Total Mobile
allowance
HML 800000
ESCORT 600000
MOTHERSON1800000
NIPPON 450000
800000
600000
1800000
450000
TotalMobileallowance
NIPPON
MOTHERSON
ESCORT
HML
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Comparison between companies regarding Gift cost:
Companies Gifts cost
HML 700
ESCORT 1000
MOTHERSON1200
NIPPON 2000
0
500
1000
1500
2000
Gifts cost
Gift cost/employee/year
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Comparison between companies regarding Breaks :
Companies Breaks (in minutes)
HML 60
ESCORT 30
MOTHERSON40
NIPPON 50
Total Break Time
60
30
40
50
0
10
20
30
40
50
60
70
HM
L
ESC
O
R
T
M
O
THER
SO
N
NIPPO
N
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CONCLUSION
• In Nippon there is no canteen facility available within the plant. Escort
gives Rs.7.25 as canteen subsidy and Motherson gives Rs. 12 as canteen
subsidy where as Hero Motors gives only Rs.3 as canteen subsidy.
• Escort pays a large amount (Rs. 210000/-) behind medicine and first aid
cost but cost per employee per year is only Rs. 60/-, in Motherson total
amount expended is (Rs.240000/- for 4 units) Rs.60000/- but cost per
employee is much more high that is Rs.104/-. In Kenwood Nippon first
aid and medicine facility available to every department. The total cost
expended is not very high (Rs. 21000/-) but per employee cost is nominal
Rs.61/-. Hero Motors pays good attention in this regard, total amount
expended is Rs.120000/- where as per employee cost is Rs. 120/- which
is satisfactory.
• Motherson is a large company, it has 4 units situated in four different
locations. Its expend Rs.18 lac as mobile allowance but this amount they
expended in their 4 units and per unit expenditure is Rs.4.5 lac. In HML
55
O
it is Rs. 8 lac, in Nippon it is Rs. 4.5 lac and Escort that is Rs. 6 lac as
mobile allowance.
• Nippon pays the highest amount for gifts that is Rs. 2000/-, Motherson
pays Rs. 1000/- for gift of per employee per year, Escort pays Rs.1200/-
and Hero Motors expends Rs. 700/- per employee per year which is not
satisfactory.
• In Hero Motors 2 pairs of uniform provided to per employee in every
year, it is same for Escort and Motherson, only in Nippon it is 4 pairs for
each employee. Hero Motors expends Rs 1000/- as per pair cost, Escort
expends Rs. 1200/- for per pair and Motherson expends Rs. 1250/- for
per pair cost. But Kenwood Nippon provides Uniform of Rs. 600 /- (per-
pair cost).
• In Hero Motors 2 tea breaks of 15 minutes and 30 minutes lunch break
(total 60 minutes breaks). In Escort only lunch break of 30 minutes are
given, in Motherson 2 tea breaks of 5minutes each and 30 minutes lunch
56
O
break are given and in Nippon 30 minutes lunch break and 2 tea breaks of
10 minutes (total 50 minutes) are given.
• Hero Motors paid good attention to training and development activities, it
expends Rs.450000/- per year behind training program, seminars and
workshops and the cost paid for per employee per year is Rs. 1000/-, in
Escort the total cost for training is Rs. 500000/- and per employee cost is
Rs. 143/-, in Motherson Total cost is Rs. 200000/- per unit and per
employee cost is Rs. 348/- and Nippon pays minimum attention in this
regard, the per employee training cost is Rs. 30/-.
• No transportation facility available in Motherson and Kenwood Nippon.
Escort has 20 buses and travel in two shifts where as Hero Motors has
only 3 buses for transportation.
• In Nippon if employees stay till 8:30 p.m. convenience are given to them,
if they stay till 10 p.m. food and convenience both are given to them and
if employees come at work place in holidays then convenience, dinner
and lunch all are given by the company.
57
O
SUGGESTIONS AND LIMITATION
Suggestions for Hero Motors:
• Staff Welfare activities are well organized in Hero Motors, but there are
some areas where improvements are necessary –
• Up gradation in Canteen facility: Although the quality of food is good
at hero motors but the service provided by the mess vendors is not up to
the mark. Hero Motors has to look after this problem, to solve this
problem coupon system should be applied in the canteen.
• Transportation facility: There is no transport facility given to staff in
general shift. It is important to provide transport facilities as it will save a
lot of time and energy of the employees which will be visible in
company’s turnover.
58
O
• Recreation facility: There should be a refreshment facility and a
recreation center because working in long shifts can be tiring many times.
With the help of it workers can rejuvenate and work more efficiently.
• Library facility: There is no common library in Hero Motors. Hero
Motors should arrange a library within the plant so that employees who
are eager to gain more knowledge of various fields can fulfill that.
• Ambience and Seating arrangement in gate: Like any good
organization Hero Motors has a well furnished reception area but the
there is no proper siting facility for the visitors.
• Different seating arrangement for HR department: In Hero Motors
HR department and worker’s attendance room are same, small room
called “Time Office”. Shift time is maintained from that room. Hero
Motors can use this room only for maintain shift timing and taking
attendance of worker’s but a different cell should provide to other
employees of HR department where a separate cabin can be given to HR
head. Because it can create a lot of disturbance in official works.
59
O
• Social Get-together and cultural events: Hero Motors should arrange
social get-together like picnic that is very necessary for Hero Motors
because due to lack of such events employees feel bore in their daily life.
Again it is suggested to HML that a cultural evening should be arranged
at the foundation day to give employees a chance to show their creative
talents. Especially these types of activities increase the mentality to do
team work.
Limitations of the project report:
• Comparison of this report is based on the information provided by the
HR personnel of other companies and it may be possible that all the
welfare activities may not be fully maintained as per their company’s
rules in actual practice.
60
O
• The costs (numerical values) of different welfare activities and other
activities may not accurate, so approximate values are taken for
comparison.
• In other companies survey questionnaire is filled by representative of
management not by the employees. So it is not possible to make
comparison of employee satisfaction regarding welfare of Hero Motors
with other companies.
• All companies are not able to provide all the detailed information needed
by the questionnaire. So, all the different parameters cannot be compared
in the report as per the plan.
61
O
QUESTIONNAIRE
PROFILE OF RESPONDENT
Name of Company:----------------------------------------------------------------------
Address of the Company:---------------------------------------------------------------
Name of Employee:----------------------------------------------------------------------
Age; --------------------------------
Gender---------------------------
Education----------------------------------------------------------------------------------
Designation-------------------------------------------------------------------------------
EMPLOYEE WELFARE SCHEMES
1. Working Condition
a) Plant Environment: I) Ventilation
ii) Lighting
b) Office Environment: I) Air condition Facility:
ii) Seating Arrangement:
c) Timings: I) Shifts:
ii) Overtime:
iii) Breaks:
d) Refreshment Facility:I) Latrine: Total No. :
Hygiene Cond.
62
O
ii) Water: Total No.of water cooler:
Hygiene Cond.
iii) Tea/ Coffee No./Day:
e) Office Accessories: I) Personal
Computer/Laptop:
No. Per Deptt.
Total cost/ deptt:
ii) Telephone/
Intercom Facility
No. Per Deptt.
2. Policies
a) Loan policy: I) No. of loan
sanctioned/ month:
ii) Max amount of
loan given:
iii) Interest rate:
iv) Loan recovery
policy:
b) Mediclaim policy: I) Total amount paid by company/yr.:
ii) Rules regarding policy:
iii) Max. Amount given:
3. Canteen Facility
a) Price- Lunch: I) Coupon Rate:
ii) Subsidies:
b) Price- Snacks: I) Coupon Rate:
ii) Subsidies:
4. Medical Facility
a) Regular Doctor/
Dispensary:
I) Visit/Week:
ii) Cost/year:
b) First Aid &
Medicine:
i) Avg. Cost/year.:
ii) Availability:
63
O
c) Total cost/ year:
5. Scope for Personal Growth
a) Training Facility: i) Ways of training:
a) Internal b) External
c) On-the-job d) Off-the-job
ii) No. of Training/month:
iii) Work related:
iv) Cost/Year:
v) Mandays/employee/year:
b) Seminar &
Workshop:
i) Avg. No. of Seminar & Workshop attended/Year.:
ii) Avg. cost for attending Seminars & Workshop/Year.:
c) Performance
Appraisal:
I) Appraised
Effectively:
ii) Half yearly/
Yearly:
iii) Regular Scope
for Promotion:
d) Awards &
Certificates:
I) Monetary
Award:
ii) Long Service &
Retirement
Award:
iii) Regular
Attendance
Award:
64
O
iv) Any Other:
e) Library Facility:
6.Transportation Facility
a) Bus Service: I) No. of Buses:
ii) No. of trips/
shifts:
b) Allowance:
7. Telephone/ Mobile Facility
a) Mobile allowance: FOR
DIFFERENT
LEVELS:
Rs. /- per month
Rs. /- per month
Rs. /- per month
b) Telephone
Allowance:
FOR
DIFFERENT
LEVELS:
Rs. /- per month
Rs. /- per month
Rs. /- per month
8. Organizational Climate
a) Communication flow:
b) Way of supervision:
9. Safety Measure
a) Fire Protection:
b) Chemical/Hazardous
Protection:
65
O
Oc) Measure for
Accident Protection
10. Security Measures
a) Manpower Security: I) Total No of security man:
b) Technical Protection:
11. Other Facilities
a) Children Scholarship: I) No.of
Scolarship/
Year:
ii) Total amount
given/ Year:
b) Leave & Holiday
facility:
c) Providing Dress: i) No. of Shirts,
Pants shoes,
sweaters:
ii) Yearly cost/
uniform:
iii) Cost of
Personal
Protective
Equipments:
iv) Total cost/
year:
d) Gifts:
e)
66
O
f)
g)
67
O
REFERENCES
WEBSITES:
• http://www.heromotors.com -12sep2014
• http://www.heromotocorp.com -14sep2014
books
• Kothari, C.R. (1997). Research methodology. New age
international publication.
• Sims, R.K. (2006). Human resource management. Information
age publishing Inc.
68

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Employee welfare scheme hr hero motors & other companies (1) (1)

  • 1. COMPARATIVE STUDY OF EMPLOYEE WELFARE SCHEME BETWEEN HERO MOTORS & OTHER COMPANIES Summer Internship Report Submitted in Partial Fulfillment of B.tech+MBA Programme 2010-2015 Name of Guide- Dr. Sharadendu Pandey Name of student- Deepak Dahima (10/iee/016) School of Management Gautam Buddha University
  • 3. O A REPORT ON COMPARATIVE STUDY OF EMPLOYEE WELFARE SCHEME BETWEEN HERO MOTORS & OTHER COMPANIES 3
  • 4. O 4 Project Title - COMPARATIVE STUDY OF EMPLOYEE WELFARE SCHEME BETWEEN HERO MOTORS & OTHER COMPANIES Summer Internship/Project Report Submitted in Partial fulfillment of B.tech + MBA Programme 2014-2015 By ……….Deepak Dahima……. ……….10/iee/016……. School of Management Gautam Buddha University Gautam Buddha Nagar- 201 310
  • 5. O ACKNOWLEDGEMENT This report has been made possible through the direct and indirect cooperation of various persons for whom I wish to express my appreciation and gratitude. First & foremost, my intellectual debt to my Faculty Guide Dr. Sharadendu Pandey, who has continuously provided his valuable suggestions and guided me to make this project report more useful. DEEPAK DAHIMA 5
  • 6. O Executive summary The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor Management Relations Act, 1947 (other than pensions on retirement or death, and insurance to provide such pensions).'' Welfare facilities include toilets, washing facilities, rest and changing facilities, personal security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities, personal growth facilities like library facility; training facility, Safety and Security measures, adjustable working shift and timing, festival grants, transportation facility, housing facility etc. 6
  • 7. O TABLE OF CONTENTS 1. Acknowledgement 2. Executive summery 3. Introduction • Definition of Employee Welfare Schemes • Facilities cover under Employee Welfare Schemes • Need of Employee Welfare in organization 4. Company Profile • Overview of the company • History of Hero Motors • Evaluation of Hero Motors • Mission & Vision of Hero Motors • Values of Hero Motors • Corporate Objective of Hero Motors • Organization Structure of Hero Motors 5. Objective of the research 6. Research Methodolo Sample • Instrument used • Data collection method • Project evaluation method 7. Employee Welfare at Hero Motors • Loan Policy • Canteen facility • Medical facility • Uniform provided • Transportation facility • Training and developmento • Telephone allowances • Awards • Gifts and events 7
  • 8. O 8. Data Analysis • Comparison between companies regarding training cost • Comparison between companies regarding loan facility • Comparison between companies regarding canteen • Comparison between companies regarding medicine cost • Comparison between companies regarding mobile allowance • Comparison between companies regarding Gift cost • Comparison between companies regarding Break time 9. Conclucion 10. Suggestions & Limitations A) Suggestions for Hero Motors B) Limitations of project report 11. Questionnaire Sample of questionnaire 8
  • 9. O Project Title : Comparative Study of Employee Welfare Scheme between Hero Motors Limited and Other Companies Location : Hero Motors Ltd. Company Profile: Hero Motors is a part of the HERO GROUP, which is a multi billion dollar group with diverse interests in manufacturing, engineering design, corporate services, and value added engineering. Hero Motors is an integrated engineering services provider that has high quality processes and a world-class technical team in place to deliver the best solutions in engineering. 9
  • 10. O Employee Welfare Scheme– Objective of the Project: The purpose of this report is to evaluate the on going activities carried out under “Employee Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to competently support the organization to develop and administer effective employee welfare and ensure continuous commitment from employee part for achieving the ultimate goal of the organization. 10
  • 11. O RESEARCH METHODOLOGY: • Selecting the companies for the purpose of comparison. • Gathering information regarding employee welfare of those companies. • Using questionnaire for collecting information • Analysing the information for fulfillment of report objective. 11
  • 12. O 12
  • 13. O EMPLOYEE WELFARE DEFINITION: The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor Management Relations Act, 1947 (other than pensions on retirement or death, and insurance to provide such pensions).'' Welfare facilities include toilets, washing facilities, rest and changing facilities, personal security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities, personal growth facilities like library facility; training facility, Safety and Security measures, adjustable working shift and timing, festival grants, transportation facility, housing facility etc. 13
  • 15. O Different facilities cover under Employee Welfare Scheme: PLANT TIMING OFFICE ENVIRONMENT ENVIRONMENT 1. Shifts 1. Ventilation 2. Overtime 2 .Air-conditioned 3. Breaks 3 .Lighting . 4. Seating arrangement 5 .General Cleanliness 6. Humidity 7 .Personal Laptop 15 Working Condition
  • 16. O TRAINING EDUCATIONAL PERFORMANCE FACILITY FACILITY MEASURE 1. Internal Training 1. Library 1. Regular & effective 2. External Training 2.Debating Union appraise 3. Workshop & Seminars 3. Worker’s children’s 2. Monetary/ Non schools monetary awards 16 Personal Growth Facility
  • 17. O FIRE ARMED SECURITY TECHNICAL MEASURES PROTECTION GUARD PROTECTION FOR ACCIDENT PROTECTION 17 Safety & Security Measures
  • 18. O CLUBS EVENTS 1. Gymnasium 1. Picnic 2. Creches 2. Factory Foundation day 3. Recreational Club 3. Cultural evenings 4. Festivals celebration SANITATION OTHER FACILITIES 1. Toilets 1. Rest room 2. Wash-basins 2. Tea & Snacks at breaks 3. Water & Waste disposal 3. Water cooler 4. Dustbins & Spittoons 18 Recreational Facility Refreshment Facility
  • 19. O DISPENSARY INDIVIUAL TREATMENT 1. First-Aid 1. Hospital & Medicine cost 2. Regular Doctor for accidental case 3. Medicines for minor injuries & illness 2. Free medical check-up UNIFORM CHILDREN FESTIVAL HOUSING TRAVELLING SCHOLARSHIP GIFTS 19 Medical Facility Other facilities
  • 20. O Need for Employee Welfare: 20 Employee Welfare Schemes Intellectual, physical, moral, social & economical Ensure continual commitment of employee Fulfilling Governmental Laws, Statutory Provisions or required by customs of the industry & country Create & improve organizational image
  • 21. O COMPANY PROFILE OVERVIEW OF THE COMPANY: Company Name: HERO MOTORS LIMITED • Company Address: 10th Km Stone, G.T. Road Dadri, Distt- Gautam Budh Nagar, U.P. • Industry: Automobile Spareparts • Product range: Gear block, Cylinder block, Swing arm, Main stand, Side stand, Chain case, etc. • Mother concern: HERO GROUP OF COMPANIES: • Hero Cycles - Founded in 1956, largest manufacturer of cycles in the world, manufacturing over 6 million cycles per year. • Hero Motors - Auto component outsourcing / scooter & Step through maker & parent company of Hero Global Design. 21
  • 22. O • Hero Global Design – Design/ Engineering/ Prototyping and Manufacturing support services. • Munjal Showa - Joint Venture with Showa, Japan largest • manufacturer of shock absorbers in India • Sunbeam Auto & Munjal Castings - Aluminum die casting Unit • Hero Mindmine – BPO training services, BPO services; Call Center 22
  • 23. O All India Offices: I) Corporate Office: 601, International Trade Tower, Nehru Place, New Delhi- 110019 II) Plant / Works: 10th Km Stone, G.T.Road, Dadri, Distt- Gautam Budh Nagar, Ghaziabad (UP) III) Foundry Project: Plot No. 192, Sector-4, Manesar, Gurgaon 23
  • 24. O ACHIEVEMENTS: • Green Pioneer Award - 2013 • Asias Third Best Employer Brand Award-2012 • NDTV Profit Car & Bike Awards 2010 • Company of the Year awarded by Economic Times Awards for Corporate Excellence 2008-09 • The NDTV Profit Car India & Bike India Awards 2007 in the following category: Overall "Bike of the Year" - CBZ X-treme • Adjudged 7th Top Indian Company in 2006 by Wallstreet Journal Asia (Top Indian Two Wheeler Company). • Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the 'Automobiles' category. • Hero Group ranks amongst the top 10 Business Houses comprising 18 companies, with an estimated turn over of US$ 1.8 billion during the fiscal year 2003-2004. • HSBC-Merril Lynch has estimated Hero Group would be among the Top Value Creator in 2001-2004. • Hero Honda Motors was ranked 3rd amongst top Indian companies Review 2000- Asia’s leading companies award (2003) by Far Eastern Economic Review. • Hero Cycles Limited is a Guinness Book Record holder since 1986 as the wolrd’s largest manufacturer of bycycles, with annual sales volume of 5.2 million bicycles in FY 2004. 24
  • 25. O • Hero Motors Limited was awarded as Highest Automobile Exporter in the year of 1995-1996 & 1996-1997. • Hero Motors is Certified by ISO 9000 in the year of 2002. HISTORY OF HERO MOTORS: • Hero, the brand name synonymous with two-wheelers in India, is a multi-unit, multi- product, geographically diversified, Group of Companies - the reflection of the steely ambition and indomitable grit of the Munjal Family. Munjal Brothers, the founders of the Hero Group, started out in 1960’s in business of bicycle components, and then complete bicycles. Like every success story, Hero's saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. • The company incorporated its business with the name of Majestic Auto Limited in 1978. It was established at Ludhiana by Mr. O.P.Munjal, chairman of the coimpany. Later in 1988 another production plant, namely Majestic Auto Limited-II was established by Mr. Pankaj Munal at Ghaziabad. In 2005 the company has demerged and the second plant of Ghaziabad was renamed as Hero Motors Limited. The plant area of Hero Motors spread over 30 acre land. HML has another small plant of 20 acre land at Manesar, near Gurgaon where they produce Ferrous casting products for their customers. 25
  • 26. O • Hero Motors (and subsequently Hero Global Design), set up in 1988 was originally focused solely on the two-wheeler market. The company manufactured two stroke mini motorcycles under the HERO PUCH brand, two stroke scooters under the HERO WINNER brand and four-stroke step through motorcycles under the HERO SMART and HERO STING brand. • The Automobile and the Automobile Component Industry is one of the largest growing in India. Hero Motors considers this to be a focus area. Since 2004, based on a new strategic initiative, Hero Motors is nurturing the integrated engineering service provider business. HML now supplies automotive spare parts like gear block to Austria,Cylinder block to L.G. and Swing arm; Main stand; Side stand; Chain case etc to Hero. 26
  • 27. O EVALUATION OF HERO MOTORS: 1988 - Set up to manufacture mopeds in technical collaboration Styer Daimler Puch, Austria 1993 - Became India’s largest exporter of two wheelers 1998 - Started development of four stroke engines in technical collaboration with Briggs & Stratton, USA - Formed HERO GLOBAL DESIGN 2001 - Launched HGD designed specialized moped – HERO POWER range 2002 - Launched India’s first four stroke moped – HERO SMART 2003 - Launched motorcycle –HERO- STING Entered into agreements with ROTAX for engine & part development 2004 - Company focused as a “integrated engineering solution provider” 2005 - First supplies to ROTAX (Austria) and a World renowned Consumer Goods Manuacturer - Ferrous Casting Plant being set up at Manesar 2011- New licensing arrangement signed between Hero and Honda (Hero Honda is renamed as Hero) 2012- Migration of all products to Brand Hero and Strategic partnership with Erik Buell Racing (EBR) of USA 2013- Neemrana Plant Foundation Stone laid 27
  • 28. O - 50 Million cumulative 2 wheelers production - Global Parts Centre Foundation Stone laid 28
  • 29. O VISION The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena MISSION Hero Motor’s mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners 29
  • 30. O OBJECTIVE OF THE RESEARCH The purpose of this report is to evaluate the on going activities carried out under “Employee Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to competently support the organization to develop and administer effective employee welfare and ensure continuous commitment from employee part for achieving the ultimate goal of the organization 30
  • 31. O RESEARCH METHODOLOGY • SAMPLE • ESCORTS TRACTOR LTD. 18/4 Mathura Road- Faridabad • MOTHRSON AUTOMOTIVE TECHNOLOGIES & ENGINEERIMG LTD. D-14, Sector-59, Noida • KENWOOD NIPPON D-8, Sector-10, Noida Instruments Used: • Questionnaire • Data collection method • Interview method • Details of data regarding cost from files of Finance Department. • Personal observation of every welfare facility 31
  • 32. O PROJECT EVALUATION METHOD: • Sort out the feedback of different companies about what they give to their employees and also sort out the information of benefits given by Hero Motors. • Summary of Feedback for Future Planning from responses. • Analysis of surveys through statistical tools, charts and evaluation of the study. • Analysis of the information gathers from other companies and makes comparison of total 32
  • 33. O EMPLOYEE WELFARE AT HERO MOTORS • Employees are always important in HERO MOTORS. HML wants employees who can carry out their missions and fulfill their roles, with the aim of contributing to the enhancement of the Company’s enterprise value, thereby winning society’s trust. • In order to have a solid organization which attracts and inspires employees like these to actively contribute to the Company with their best efforts, skills and abilities. Hero Motors is endeavoring to establish effective systems for performance evaluation and compensation, human resources development, and staff deployment. • Furthermore, HML welfare and benefits system is designed to provide a comfortable environment in which employees can easily adjust. While providing a workplace where employees can focus on their work without distractions, the welfare and benefits system also helps keep them in the best of health, and serves as a safety net, giving employees a stronger feeling of security. LOAN POLICY: Hero Motors provides its employees two types of loans- Personal loan for any personal purpose like marriage, higher education, housing etc and Vehicle loan. Total 10 loans approved in a month in “first come first serve” basis. For lower level employee there is no interest charged up to Rs. 5000/- and recovered in 10 equal monthly installments from the employee’s salary, above this amount 14% interest are charged/ year and recovered in 20 EMI. For higher level employee up to Rs.15000/- is interest free above which 14% interest are charged. 33
  • 34. O As vehicle loan, 75% of the total cost paid by company as loan in 5% interest and recovered in 60 EMI including interest. Car loan available for managers and above only. Amount given as loan at different levels: G.M and above - 2 Lac A.G.M I - 1.5 Lac A.G.M II - 1.25 Lac Managers - 1 Lac CANTEEN FACILITY: Canteen is not only a place for taking lunch or dinner. It is a place where employees of one department can meet with employees of other departments and can make some conversation that helps to improve the informal communication flow within organization. In Hero Motors a specious and well-equipped canteen is there facilitated with every modern facility like comfortable seating arrangement, water cooler and washing facility. Hero Motors provides canteen subsidies for employees; lunch coupon distributed at Rs.14/- and Rs. 3/- is paid by company as subsidy and at breaks two times free teas are provided. Employees working for overtime above 4 hours are entitled for free lunch. Summer Trainees are provided free lunch during their training periods. Except these meal allowances for lunch 34
  • 35. O and snacks are also given to employees if they are outside the plant for any official purpose during lunchtime. Hero Motors provides free lunch to the visitors and guests (like corporate guests) who come for any official purpose. COST OF LAST FINANCIAL YEAR BEHIND CANTEEN Total meal allowance (on duty) paid to employees: Rs. 1, 96,800/- Canteen bill (including pantry cost) : Rs. 22, 43,200/- Refreshment & tea, snacks expenses : Rs. 6, 50,000/- MEDICAL FACILITY: At Hero Motors there is a dispensary where doctor visits regularly, daily 1 hour a doctor attends patients. All time first-aid facility and medicines for any minor illness are available. For any major accident or in any serious case patients are admitted to near by hospitals or nursing home. The cost of medicines, rent of bed and others are given by company. Hero Motors has an ambulance for shifting purpose in case of serious illness. 35
  • 36. O MEDICAL COST OF LAST THREE FINANCIAL YEARS: Year Cost for medicines Cost behind employees treatment Doctor's fees April 2013- March 2014 59,700 39,000 72,000 April 2012- March 2013 12,000 97,400 60,000 April 2011- March 2012 23,300 4,50,000 60,000 Hero Motors gives its employees medi-claim facility, under which the policy premiums for employee are given by Hero Motors and policy premium of employee’s family members are paid by employee. 36
  • 37. O MAXIMUM AMOUNT PAID AS PREMIUM AT DIFFERENT LEVELS: MD and Family – 5 Lac General Manager I/II – 3 Lac Assistant General Manager I/II -2 Lac Manager I/II, Assistant Manager I/II- 1.5 Lac Executive I/II/III -1 Lac Supervisor – Rs. 50000/- Workmen/ Driver/ Peon- Rs.15000/- Uniform Provided: To create a sense of unity, proud feelings for organization and a sense of belongingness it is very necessary for every organization to create and maintain an identity. For this purpose Hero Motors provides uniforms for all its employees from workers to high-level managers.. Sweaters and jackets are given alternatively in every winter. As per requirements of the job, personal protective equipments like masks, gloves, safety shoes, dangri suits (for paint shop and machine shop workers), caps etc are also provided to workers. COST OF UNIFORMS OF LAST THREE FINANCIAL YEARS: 37
  • 38. O Year Cost of pants, shirts, and stitching cost Cost of woolen clothes Cost of personal protective equipments Cost of leather shoes and socks Cost of other accessories April 2013- March 2014 3,72,500 2,51,000 1,47,500 1,83,000 1450 April 2012- March 2013 4,02,300 40,800 60,600 1,71,600 1840 April 2011- March 2012 3,86,000 61,500 36,000 60,000 1350 38
  • 39. O Transportation facility: Providing transportation facility is a very important aspect of any organization to its employees. Because if the way to reach the organization is not very convenient and the employee has to face lots of problems during every day journey it can affects the organization in a very large way. It may results in late comings that hamper organizational culture and also the productivity, again facing problems in daily up-down may irritate employees and they may feel to switching the job means, increasing employee’s dissatisfaction and lost of good employees which can be a severe problem for any organization. Hero Motors has three buses. The buses cover different routes for their workers coming from different places. COST BEHIND BUS SERVICE IN LAST FINANCIAL YEAR : RS. 9,65,000/- 39
  • 40. O Training and development: Training is way to make sure that employees have the right skills to effectively operate various machines and manage various challenging situations. Employer gives training to his/her employees so that employees can do the same job in some better way, which ultimately increase the quantity of production and also the quality of work. It is basically given by every organization for technical up-gradation of the job where as development program is carried out with the view to explore and upgrade the qualities of employee’s inner quality. Development program is very necessary for the personal growth of employees. Hero Motors gives special emphasize on this aspect for its employees. In Hero Motors ‘Employee Training Programs’ are carried out by a group of people of Quality Department. Hero Motors provides good scopes for employees to learn from Internal as well as External Training. Employees can attend Seminars and Workshops arranged by other organization and company bears entry fees for that. Hero Motors invites/hires external trainer from outsides for ‘Worker’s Training’. Staff training programs also carried out as per training needs and plans. The training programs are carried out in two basic ways- a) On the job training and b) Off the job training. Off the job training is give using different methods like class room training, group discussion etc. After training, trainees are evaluated and ranked by the trainer to judge and compare their qualities and again a feed back form filled by trainees to welcome their suggestions. 40
  • 41. O Cost of last three financial years behind training and development programs: Years Cost for Training Cost of Seminars & Workshops Total Cost March'2013- April'2014 3,86,400 63,800 4,50,000 March2012- April'2013 3,34,300 21,700 3,56,000 March'2011- April'2012 5,89,000 37,600 6,26,600 41
  • 42. O Telephone Allowance: Today’s business world is very dynamic in nature and it demands proper and quick execution of any work. Managers have to update their information base in every moment and have to take decisions in challenging situation. For this it is very necessary to stay connected with their colleagues and boss within and outside organization also. Now a days most of the companies give mobile and telephone allowances to their managers. Hero Motors grants mobile allowance from supervisor level to highest level of management and paid for residential telephone bill only to top-level management. Amount given as mobile allowance at different level: Vice president and above : Rs. 3500/- per month General manager I / II : Rs. 2200/- per month Assistant General Manager, Manager : Rs. 1500/- per month Assistant manager I / II : Rs. 1000/- per month Executive I /II /III, Supervisor I/II/III : Rs 600/- per month 42
  • 43. O Motivational Tool: Awards : • Motivated employees can give two times extra than a dissatisfied employee. Rewarding employees is that simple tool. • Award is a way of appreciating one’s job from management side; it is a proof or formal recognition. Award is a tool of motivating employees to do the job with new zeal, enthusiasm, hard work and sincerity. • Hero Motors rewarding employees for long service and retirement. The “Long Service Awards” are given for 5years, 10years, 15 years and 20 years. For 10 years service “Two-in-One Music System”, 15 years “CD Player” and 20 years “gold chain of 8 gms” are given by the company. There is an award given once in a year as “Regular Attendance Award”. Gifts and Events : Celebration of various festivals and events are necessary to welcome a wind of relieve so that employees can start their job with a new passion. Again these types of celebrations give employees a chance to meet each other in an informal atmosphere and also a chance to show their other creative talents. Although in Hero Motors these types of celebrations are not done in very frequently, still some special days are celebrated by Hero Motor’s employees. The “Foundation day” is celebrated every year, on that day puja or hawan are done in the morning. After that, eminent personalities give their speeches and provide snacks by 43
  • 44. O company. Special lunch is provided in all special occasions. “Independence Day”, “Republic Day” is also celebrated in Hero Motors. Hero Motors gives its employees Diwali Bonus & gifts with sweets in every year. 44
  • 45. O DATA ANALYSIS Comparison between companies regarding training cost: Companies Total Cost HML 450000 ESCORT 500000 MOTHERSON 200000 NIPPON 60000 45
  • 47. O Training Cost incurred behind per employee in a year in different companies: 0 100 200 300 400 500 600 700 800 900 1000 Cost/employee/year 1000 143 348 30 HML ESCORT MOTHERSON NIPPON Companies Cost/employee/year HML 1000 ESCORT 143 MOTHERSON348 NIPPON 30 47
  • 48. O COMPARISON BETWEEN COMPANIES REGARDING LOAN FACILITY: Companies Maximum loan amount HML 20,0000 ESCORT 50,000 OMOTHERSON200000 NIPPON 50,000 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 200000 200000 50,000 200000 50,000 HML ESCORT MOTHERSON NIPPON Maximum number of loan given by companies in a month: 48
  • 49. O Hero Motors Limited : 10 Escort Tractor Limited: 15 Motherson Automotive Engineering Technologies: 25 Kenwood Nippon : 5 49
  • 50. O Comparison between companies regarding canteen subsidy: Companies Canteen Subsidies HML 3 ESCORT 7.25 MOTHERSON12 NIPPON 0 O Canteen Subsidies 3 7.25 12 0 0 5 10 15 HML ESCORT MOTHERSON NIPPON Comparison between companies regarding medicine cost: Companies Medicine 50
  • 51. O Cost/employee/year HML 120 ESCORT 60 MOTHERSON104 NIPPON 61 120 60 104 61 Medicine cost/employee/year HML ESCORT MOTHERSON NIPPON 51
  • 52. O Comparison between companies regarding mobile allowance: Companies Total Mobile allowance HML 800000 ESCORT 600000 MOTHERSON1800000 NIPPON 450000 800000 600000 1800000 450000 TotalMobileallowance NIPPON MOTHERSON ESCORT HML 52
  • 53. O Comparison between companies regarding Gift cost: Companies Gifts cost HML 700 ESCORT 1000 MOTHERSON1200 NIPPON 2000 0 500 1000 1500 2000 Gifts cost Gift cost/employee/year 53
  • 54. O Comparison between companies regarding Breaks : Companies Breaks (in minutes) HML 60 ESCORT 30 MOTHERSON40 NIPPON 50 Total Break Time 60 30 40 50 0 10 20 30 40 50 60 70 HM L ESC O R T M O THER SO N NIPPO N 54
  • 55. O CONCLUSION • In Nippon there is no canteen facility available within the plant. Escort gives Rs.7.25 as canteen subsidy and Motherson gives Rs. 12 as canteen subsidy where as Hero Motors gives only Rs.3 as canteen subsidy. • Escort pays a large amount (Rs. 210000/-) behind medicine and first aid cost but cost per employee per year is only Rs. 60/-, in Motherson total amount expended is (Rs.240000/- for 4 units) Rs.60000/- but cost per employee is much more high that is Rs.104/-. In Kenwood Nippon first aid and medicine facility available to every department. The total cost expended is not very high (Rs. 21000/-) but per employee cost is nominal Rs.61/-. Hero Motors pays good attention in this regard, total amount expended is Rs.120000/- where as per employee cost is Rs. 120/- which is satisfactory. • Motherson is a large company, it has 4 units situated in four different locations. Its expend Rs.18 lac as mobile allowance but this amount they expended in their 4 units and per unit expenditure is Rs.4.5 lac. In HML 55
  • 56. O it is Rs. 8 lac, in Nippon it is Rs. 4.5 lac and Escort that is Rs. 6 lac as mobile allowance. • Nippon pays the highest amount for gifts that is Rs. 2000/-, Motherson pays Rs. 1000/- for gift of per employee per year, Escort pays Rs.1200/- and Hero Motors expends Rs. 700/- per employee per year which is not satisfactory. • In Hero Motors 2 pairs of uniform provided to per employee in every year, it is same for Escort and Motherson, only in Nippon it is 4 pairs for each employee. Hero Motors expends Rs 1000/- as per pair cost, Escort expends Rs. 1200/- for per pair and Motherson expends Rs. 1250/- for per pair cost. But Kenwood Nippon provides Uniform of Rs. 600 /- (per- pair cost). • In Hero Motors 2 tea breaks of 15 minutes and 30 minutes lunch break (total 60 minutes breaks). In Escort only lunch break of 30 minutes are given, in Motherson 2 tea breaks of 5minutes each and 30 minutes lunch 56
  • 57. O break are given and in Nippon 30 minutes lunch break and 2 tea breaks of 10 minutes (total 50 minutes) are given. • Hero Motors paid good attention to training and development activities, it expends Rs.450000/- per year behind training program, seminars and workshops and the cost paid for per employee per year is Rs. 1000/-, in Escort the total cost for training is Rs. 500000/- and per employee cost is Rs. 143/-, in Motherson Total cost is Rs. 200000/- per unit and per employee cost is Rs. 348/- and Nippon pays minimum attention in this regard, the per employee training cost is Rs. 30/-. • No transportation facility available in Motherson and Kenwood Nippon. Escort has 20 buses and travel in two shifts where as Hero Motors has only 3 buses for transportation. • In Nippon if employees stay till 8:30 p.m. convenience are given to them, if they stay till 10 p.m. food and convenience both are given to them and if employees come at work place in holidays then convenience, dinner and lunch all are given by the company. 57
  • 58. O SUGGESTIONS AND LIMITATION Suggestions for Hero Motors: • Staff Welfare activities are well organized in Hero Motors, but there are some areas where improvements are necessary – • Up gradation in Canteen facility: Although the quality of food is good at hero motors but the service provided by the mess vendors is not up to the mark. Hero Motors has to look after this problem, to solve this problem coupon system should be applied in the canteen. • Transportation facility: There is no transport facility given to staff in general shift. It is important to provide transport facilities as it will save a lot of time and energy of the employees which will be visible in company’s turnover. 58
  • 59. O • Recreation facility: There should be a refreshment facility and a recreation center because working in long shifts can be tiring many times. With the help of it workers can rejuvenate and work more efficiently. • Library facility: There is no common library in Hero Motors. Hero Motors should arrange a library within the plant so that employees who are eager to gain more knowledge of various fields can fulfill that. • Ambience and Seating arrangement in gate: Like any good organization Hero Motors has a well furnished reception area but the there is no proper siting facility for the visitors. • Different seating arrangement for HR department: In Hero Motors HR department and worker’s attendance room are same, small room called “Time Office”. Shift time is maintained from that room. Hero Motors can use this room only for maintain shift timing and taking attendance of worker’s but a different cell should provide to other employees of HR department where a separate cabin can be given to HR head. Because it can create a lot of disturbance in official works. 59
  • 60. O • Social Get-together and cultural events: Hero Motors should arrange social get-together like picnic that is very necessary for Hero Motors because due to lack of such events employees feel bore in their daily life. Again it is suggested to HML that a cultural evening should be arranged at the foundation day to give employees a chance to show their creative talents. Especially these types of activities increase the mentality to do team work. Limitations of the project report: • Comparison of this report is based on the information provided by the HR personnel of other companies and it may be possible that all the welfare activities may not be fully maintained as per their company’s rules in actual practice. 60
  • 61. O • The costs (numerical values) of different welfare activities and other activities may not accurate, so approximate values are taken for comparison. • In other companies survey questionnaire is filled by representative of management not by the employees. So it is not possible to make comparison of employee satisfaction regarding welfare of Hero Motors with other companies. • All companies are not able to provide all the detailed information needed by the questionnaire. So, all the different parameters cannot be compared in the report as per the plan. 61
  • 62. O QUESTIONNAIRE PROFILE OF RESPONDENT Name of Company:---------------------------------------------------------------------- Address of the Company:--------------------------------------------------------------- Name of Employee:---------------------------------------------------------------------- Age; -------------------------------- Gender--------------------------- Education---------------------------------------------------------------------------------- Designation------------------------------------------------------------------------------- EMPLOYEE WELFARE SCHEMES 1. Working Condition a) Plant Environment: I) Ventilation ii) Lighting b) Office Environment: I) Air condition Facility: ii) Seating Arrangement: c) Timings: I) Shifts: ii) Overtime: iii) Breaks: d) Refreshment Facility:I) Latrine: Total No. : Hygiene Cond. 62
  • 63. O ii) Water: Total No.of water cooler: Hygiene Cond. iii) Tea/ Coffee No./Day: e) Office Accessories: I) Personal Computer/Laptop: No. Per Deptt. Total cost/ deptt: ii) Telephone/ Intercom Facility No. Per Deptt. 2. Policies a) Loan policy: I) No. of loan sanctioned/ month: ii) Max amount of loan given: iii) Interest rate: iv) Loan recovery policy: b) Mediclaim policy: I) Total amount paid by company/yr.: ii) Rules regarding policy: iii) Max. Amount given: 3. Canteen Facility a) Price- Lunch: I) Coupon Rate: ii) Subsidies: b) Price- Snacks: I) Coupon Rate: ii) Subsidies: 4. Medical Facility a) Regular Doctor/ Dispensary: I) Visit/Week: ii) Cost/year: b) First Aid & Medicine: i) Avg. Cost/year.: ii) Availability: 63
  • 64. O c) Total cost/ year: 5. Scope for Personal Growth a) Training Facility: i) Ways of training: a) Internal b) External c) On-the-job d) Off-the-job ii) No. of Training/month: iii) Work related: iv) Cost/Year: v) Mandays/employee/year: b) Seminar & Workshop: i) Avg. No. of Seminar & Workshop attended/Year.: ii) Avg. cost for attending Seminars & Workshop/Year.: c) Performance Appraisal: I) Appraised Effectively: ii) Half yearly/ Yearly: iii) Regular Scope for Promotion: d) Awards & Certificates: I) Monetary Award: ii) Long Service & Retirement Award: iii) Regular Attendance Award: 64
  • 65. O iv) Any Other: e) Library Facility: 6.Transportation Facility a) Bus Service: I) No. of Buses: ii) No. of trips/ shifts: b) Allowance: 7. Telephone/ Mobile Facility a) Mobile allowance: FOR DIFFERENT LEVELS: Rs. /- per month Rs. /- per month Rs. /- per month b) Telephone Allowance: FOR DIFFERENT LEVELS: Rs. /- per month Rs. /- per month Rs. /- per month 8. Organizational Climate a) Communication flow: b) Way of supervision: 9. Safety Measure a) Fire Protection: b) Chemical/Hazardous Protection: 65
  • 66. O Oc) Measure for Accident Protection 10. Security Measures a) Manpower Security: I) Total No of security man: b) Technical Protection: 11. Other Facilities a) Children Scholarship: I) No.of Scolarship/ Year: ii) Total amount given/ Year: b) Leave & Holiday facility: c) Providing Dress: i) No. of Shirts, Pants shoes, sweaters: ii) Yearly cost/ uniform: iii) Cost of Personal Protective Equipments: iv) Total cost/ year: d) Gifts: e) 66
  • 68. O REFERENCES WEBSITES: • http://www.heromotors.com -12sep2014 • http://www.heromotocorp.com -14sep2014 books • Kothari, C.R. (1997). Research methodology. New age international publication. • Sims, R.K. (2006). Human resource management. Information age publishing Inc. 68