Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
A
Dissertation Project Report
Submitted in partial fulfillment of the
Post Graduate Diploma in Management
Under NIST Business School, Berhampur, Orissa.
Submitted by:
AMRIT KUMAR DASH
Roll No. # 200910652 Regd. No. # PGDM09652
September - 2010
Under Guidance of
Dr. Arun Kumar Mahapatra
I wish to express my deep sense of gratitude to my project guide, Dr. Arun Kumar
Mahapatra, faculty, NIST for his valuable guidance and useful suggestions, which
helped me in completing the project work.
I also would like to thank Dr. Sisira Kanti Mishra, project coordinator PGDM,
NIST for being supportive and for being a helping hand.
I take immense pleasure in thanking Mr. Shom Prasad Das, Course Coordinator
PGDM, for having permitted me to carry out this project work.
Finally, yet importantly, I would like to express my heartfelt thanks to Mr. Sangram
Mudali, director NIST.
Good human resource management practice can help in attracting and retaining the
best people in the organization. Planning alerts the company to the type of people
needed in short, medium and long run requirement of the company. Appropriate
recruitment and selection activities identify the best people for available jobs and
make sure they are placed in suitable positions. Performance appraisal training and
developing individuals who need skills knowledge and attitudes different from those
they currently possess. Good human resource management practice can also motivate
organizational members to do outstanding work.
TABLE OF CONTENTS
HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
Human Resource (HR) management deals with the design of formal systems in an
organization to ensure the effective and efficient use of human talent to accomplish
organizational goals.
HR Management Challenges
The environment faced by HR management is a challenging one; changes are
occurring rapidly across a wide range of issues. The most prevalent challenges facing
HR management are as follows:
Economic and technological change
Workforce availability and quality concerns
Demographics and diversity issues
Organizational restructuring
HR Management Activities
The central focus for HR management must be on contributing to organizational
success. The key to enhancing organizational performance is ensuring that human
resources activities support organizational efforts focusing on productivity, service,
and quality.
Productivity:
As measured by the amount of output per employee, continuous
improvement of productivity has become even more important as global competition
has increased. The productivity of the human resources in an organization is affected
significantly by management efforts, programs, and systems.
Quality:
The quality of products and services delivered significantly affects
organizational success over the long term. If an organization gains a reputation for
providing poor-quality products and services, it reduces its organizational growth and
performance. An emphasis on quality requires continuous changes aimed at
improving work processes. That need opens the door for reengineering the
organizational work done by people. Customer value received and satisfaction
become the bases for judging success, along with more traditional HR measures of
performance and efficiency.
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HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
Service:
Because people frequently produce the products or services offered by an
organization, HR management considerations must be included when identifying
service blockages and redesigning operational processes. Involving all employees, not
just managers, in problem solving often requires changes in corporate culture,
leadership styles, and HR policies and practices. To accomplish these goals, HR
management is composed of several groups of interlinked activities. However, the
performance of the HR activities must be done in the context of the organization.
Additionally, all managers with HR responsibilities must consider external
environmental forces—such as legal, political, economic, social, cultural, and
technological ones—when addressing these activities. These external considerations
are especially important when HR activities must be managed internationally.
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HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
Compliance with equal employment opportunity (EEO) laws and regulations affects
all other HR activities and is integral to HR management. For instance, strategic HR
plans must ensure sufficient availability of a diversity of individuals
to meet affirmative action requirements. In addition, when recruiting, selecting,
and training individuals, all managers must be aware of EEO requirements.
Staffing
The aim of staffing is to provide an adequate supply of qualified individuals to fill the
jobs in an organization. By studying what workers do, job analysis is the foundation
for the staffing function. From this, job descriptions and job specifications can be
prepared to recruit applicants for job openings. The selection process is concerned
with choosing the most qualified individuals to fill jobs in the organization.
HR Development
The physical and mental health and safety of employees are vital concerns. The
Occupational Safety and Health Act of 1970 (OSHA) has made organizations more
responsive to health and safety concerns. The traditional concern for safety has
focused on eliminating accidents and injuries at work. Additional concerns are health
issues arising from hazardous work with certain chemicals and newer technologies.
Through a broader focus on health, HR management can assist employees with
substance abuse and other problems through employee assistance programs (EAP) in
order to retain otherwise satisfactory employees. Employee wellness programs to
promote good health and exercise are becoming more widespread. Workplace security
has grown in importance, in response to the increasing number of acts of workplace
violence. HR management must ensure that managers and employees can work in a
safe environment.
The relationship between managers and their employees must be handled effectively
if both the employees and the organization are to prosper together. Whether or not
some of the employees are represented by a union, employee rights must be
addressed. It is important to develop, communicate, and update HR policies and rules
so that managers and employees alike know what is expected. In some organizations,
union/management relations must be addressed as well.
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HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
Among the various factors of production ,which are used in organization ,human
resource is the most important .this is because the efficient use of physical resources
(land, machinery, materials) ultimately depends on how the human factor is to put to
good use on various operations .The most efficient machinery in the world will not
produce at optimum levels unless the people who operate the machinery know how to
make it perform at its best and most importantly , are motivated to make their
equipment produce efficiently.
If the skill and the will are properly applied, wonderful things can happen :
Human resources help in transforming the lifelessness factors of production
into useful products.
They are capable of enlargement i.e. capable of producing an output that is
greater than the sum of inputs. Once they get inspired, even ordinary people
can deliver extraordinary results .
They can help an organization achieve results quickly, efficiently and
effectively.
To extract the best out of people, therefore, the organization must provide a healthy
work climate where they can exploit their talents fully while realizing goals assigned
to them. They must have requisite skills to handle their jobs in a competent way.
Above all, to get the best out of people, they must be managed well and this reqires
leadership. This is where human resources managers play a critical role in bringing
gaps between employee expectations and organizational needs by adopting
appropriate human resource strategies and practices.
Managing humans is at the heart of almost all the real-life management ‘problems’.
What it takes to ‘manage’ humans? Why humans are a ‘resource’ and what makes
them special? The purpose of this topic is to bring out issues involved in the
management of human resources (HRM), both from current theory as well as practice.
It will examine humans at work and discuss various aspects which are basic
to human motivation at work and in fulfilling career aspirations within organizations.
HRM involves various issues right from selection-placement to performance
appraisal, salary-career management, and training, etc. of employees in organizations
The importance of personnel management is being increasingly realized in industrial
and non-industrial organization both in India and abroad. The realization has come
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HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
IREL
On August 18, 1950, Indian Rare Earth Limited(IREL) was incorporated as a private
limited company jointly owned by the govt. of India and govt. of Travancore, Cochin
with the primary intention of taking commercial scale processing of Monazite sand at
its first unit namely Rare Earth Limited (RED), Aluva, Kerala for the recovery of
Thorium.
After becoming a full-fledged central govt. undertaking in 1963 under the
administrative control of dept of atomic energy (DAE), IREL took over a no of
private companies engaged in mining and separation of peach sand mineral southern
part of the country of the country and establish two more divisions one at Chavare,
Kerala and the other at Manavalakurichi (MK), Tamilnadu.
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HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
After a gape of about twenty years IREL commissioned its largest division called
Orissa Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates this four
units with corporate office in Mumbai and produces/sells six heavy minerals namely
ilmenite, rutile, zircon, monazite, sillimanite and garned as well as various value
added products. IREL is making profits since 1997-1998 with its sells turnover
reaching a peak exceeding Rs 3600 million in 2006-2007, with export components of
above Rs 1000 million.
Mission/vision and objective
Mission
To be one of the leading international players in the areas of mining and separation of
beach and minerals.
Objectives
To become nationally and globally competitive player in beach sand minerals and to
achieve annual production of ilmenite with associate minerals of 8 lakh tons by the
year 2012.
To improve productivity and maximize shareholder’s value.
To strengthen R & D for achieving the above mentioned objectives.
Awards and achievement-
IREL has excelled in the areas of marketing, safety and human resource
management .In recognition of the company’s efforts, ’SCOPE’ awarded for
excellence and outstanding contribution to the public sector management –special turn
around category for the year 1999-2000.during the year 2006-07, IREL posted all
time high sales turnover exceeding 3600 million with component over Rs 1000
million and time profit before tax of Rs 1000 million. In exports IREL has got several
awards like Indian Chemical manufacturers Association Certificate of merit for ISO
9002 certification for 1998.OSCOM has been selected by directorate of export
promotion and marketing ,Orissa to get the STATE EXPORT AWARD i.e.
Certificate of excellence for the years 1995-96. IREL being an ISO 9001 and ISO
14001 company is committed to provide excellent to provide excellent quality of
services to its customers.
Systems & Procedures
The company has set systems for dealing with customer enquiries related to product
sales, both in domestic and export markets, alongwith receiving purchase order from
customers and processing them for dispatch of requisitioned products from production
units. The system has multilevel checks with proper arrangement of documenting
such requests and orders, processing them at 3 levels (viz. secretarial, supervisory and
managerial) till the queries / purchase orders are answered / executed to the
satisfaction of customers. During the period of product shortage (e.g. rutile and zircon
shortage), the company has adopted the policy of making available quantity of its
product (available with company) to its customers based on pre-determined formula
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HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
Marketing department in each production unit has adopted ISO 9002 for their regular
operation and under this system documented procedures are followed for attending to
customer complaints regarding product quality, delay in delivery, etc.. In some of the
units Customer Service and Complaint Redressal Cell has been established. The cell
is headed by the unit Head. The cell meets periodically as well as on emergency basis,
if required, for ensuring best customer service. The main objectives of cell include
resolving customer complaints by recommending corrective / preventive actions and
reviewing its implementation. If required, the customers are also given opportunity to
be present during the meetings of the cell. Customer feedback is also obtained through
prescribed questionnaire. This feedback is used to improve customer service. Director
(Marketing) handles the matters which are beyond the administrative and financial
powers of concerned unit heads and gets such disputes related to customer complaints
settled
Grievance Redressal
IREL is committed to provide a safe and healthy environment for the protection and
well being of the employees and the general public by means of safe and healthy
system of work. Safety is given paramount consideration right from the conceptual
stage of all the projects, modifications / expansions and day-to-day operations. The
company is of the firm belief that accidents are preventable and the creation of safe
and healthy working conditions is as important as production. The company follows
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HRM practices in a public sector undertaking: A case study of IRE limited, Chatrapur.
13
4. METHODOLOGY USED IN THE STUDY
• Limitation of time
grounds of confidentiality.
• Human beings are most critical of all the assets. To extract exact information
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5. ANALYSIS
Analysis of Variance
Source DF SS MS F P
Regression 5 2.90684 0.58137 6.68 0.001
Residual Error 19 1.65316 0.08701
Total 24 4.56000
Source DF Seq SS
RASP 1 0.27627
ISRP 1 0.46944
IETE 1 0.60496
OLTO 1 0.63424
PSB 1 0.92193
For the Human Resource Practice data at IREL, the response variable is HEUM (HRP
practiced by IREL helps in a greater way to the effective utilization of its manpower)
and the predictors are RASP (Recruit people with appropriate selection procedure
which contribute to its success), ISRP (IREL depends on interviews as the most
effective selection tool in its recruitment process), IETE (Indiscipline of employees is
not tolerated and the ultimate remedy is termination of an employee), OLTO (IREL
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follows orientation as a long term objective), and PSB (Promotion is made on
seniority basis).
The interpretation of the regression equation follows:
The slope (b1 = 0.119) is the change in HEUM when RASP increases by 1.
That is, when the RASP increases by one unit, the HEUM increases by 0.119
units.
The slope (b2 = 0.377) is the change in HEUM when ISRP increases by 1.
That is, when the ISRP increases by one unit, the HEUM increases by 0.377
units.
The slope (b3 = - 0.250) is the change in HEUM when IETE increases by 1.
That is, when IETE increases by one unit, the HEUM decreases by 0.250
units.
The slope (b4 = 0.162) is the change in HEUM when OLTO increases by 1.
That is, when OLTO increases by one unit, the HEUM increases by 0.162
units.
The slope (b5 = 0.131) is the change in HEUM when PSB increases by 1. That
is, when the PSB increases by one unit, the HEUM increases by 0.131 units.
The constant (intercept) value (b0 = 0.616) is the predicted value of HEUM
when each predictor (RASP, ISRP, IETE, OLTO, PSB) is zero. That is, when
the predictors are zero the Rating is 0.616.
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The R-square value indicates that the predictors explain 63.7% of the variance
in HEUM. The adjusted R-square is 54.2%, which accounts for the number of
predictors in the model. Both values indicate that the model fits the data well.
Histogram
(response is HEUM)
6
Frequency
0
-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0
Standardized Residual
For the Human Resource Practice data at IREL, no evidence of skewness or outliers
exists.
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Normal Probability Plot
(response is HEUM)
99
95
90
80
70
Percent
60
50
40
30
20
10
1
-3 -2 -1 0 1 2 3
Standardized Residual
For the Human Resource Practice data at IREL, the residuals appear to follow a
straight line although the negative tail falls slightly away from the line. No evidence
of non-normality, or unidentified variables exists.
The Pearson correlation between ESI and Trade Union is -0.290, between
Management and ESI is 0.385, and between Trade Union and Management is -0.134.
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This explains that ESI (employee satisfaction index) and Trade Union and
management and Trade Union are negatively correlated where as ESI and
management are positively correlated.
Findings
The ESI (employee satisfaction index) is found to be ….. which shows that
employees are very satisfied with the management policies.
Good working environment, regular training and training procedure leads to employee
satisfaction.
Employee satisfaction index and management are positively correlated that shows that
there is cordial relationship between management and employee which leads to
achieving its goal effectively.
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6. CONCLUSION
IREL being a public sector organization has a well defined HRM policy and it follows
a well developed HRM practices and procedures. The HRM policies and practices are
directed from the head office and implemented at the regional office.
A review of the policies and practices of IREL, Chatrapur shows the following
results.
IETE (Indiscipline of employees is not tolerated and the ultimate remedy is
termination of an employee), OLTO (IREL follows orientation as a long term
objective), and PSB (Promotion is made on seniority basis) has positive impact on
HEUM (HRP practiced by IREL helps in a greater way to the effective utilization of
its manpower). That means indiscipline, orientation and seniority based promotion has
significantly influencing the effective utilization of manpower.
Hence it can be concluded that the HRM policies and practices of IREL are up to
mark. This is confounded from the result of ESI (employee satisfaction index) and
management which are positively correlated.
However correlation between employee and trade union are negative. This shows that
the Trade Union is not effective in mobilizing the employee but able to make a hard
bargain with the management as the correlation between management and Trade
Union is negative.
The present study being a short term project is not able to cover all the aspect of HRM
policies and practices of IREL.
There is ample scope for further study of HRM policies and practices of IREL.
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QUESTIONNAIRE FOR HRM PRACTICES: EMPLOYEES
NAME:-
DESIGNATION:-
1 2 3 4 5
Less than 6 6 months-1 1 year-5 5 years-10 More than 10
months year years years years
1 2 3 4 5
Very satisfied satisfied Can’t said dissatisfied Highly dissatisfied
Q3. Are you satisfied with the recruitment process of your company?
1 2 3 4 5
Very satisfied satisfied Can’t said dissatisfied Highly dissatisfied
Q4. Are you satisfied with your organization’s salary increment Policy?
1 2 3 4 5
Very satisfied satisfied Can’t said dissatisfied Highly dissatisfied
Q5. Are you satisfied with the training procedure given in the Organization?
1 2 3 4 5
Very satisfied satisfied Can’t said dissatisfied Highly dissatisfied
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Q6. Are you getting regular training in your company?
1 2 3 4 5
Always Very Often Occasionally No
often
Q7. Are you satisfied with the performance appraisal system in your organization?
1 2 3 4 5
Very satisfied satisfied Can’t said dissatisfied Highly dissatisfied
Q8. Are you satisfied with your promotion activities in your Organization?
1 2 3 4 5
Very satisfied satisfied Can’t said dissatisfied Highly dissatisfied
Q9. Does the present performance appraisal system meet your Career advancement?
1 2 3 4 5
Highly agree agree Can’t said disagree Highly disagree
1 2 3 4 5
Highly agree agree Can’t said disagree Highly disagree
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DESIGNATION:-
1. What method is used for the performance appraisal system in your
organization?
1 2 3 4 5
Confidential report Ranking Grading 360* Self appraisal
2. IREL being a public sector organization recruits right people with appropriate
selection procedure which contributes to its success.
1 2 3 4 5
Highly agree Agree Can’t said Disagree Highly disagree
3. HRP practiced by IREL helps in a greater way to the effective utilization of its
manpower.
1 2 3 4 5
Highly agree Agree Can’t said Disagree Highly disagree
NAME:-
DESIGNATION:-
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1. How do you make economic pressure on employer?
1 2 3 4 5
Collective Bargaining Strike Boycott Gherao Picketing
5. During strikes and economic distress are you providing any monetary and
other help to your members?
1 2 3 4 5
Always Very Often Occasionally No
often
Bibliography
Books
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Websites
http://www.irel.gov.in/scripts/activity.asp
http://www.hr.com/en/surveys/active_surveys/
http://www.dol.gov/dol/topic/training/index.htm
http://www.dol.gov/dol/topic/safety-health/index.htm
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