COMPERATIVE STUDY OF EMPLOYEE WELFARE SCHEME BETWEEN

A RESEARCH REPORT ON

HERO MOTORS & OTHER COMPANIES

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF Bachelor of business administration (2010-13) SUBMITTED TO: Mr. Vikas Chadha SUBMITTED BY:Lovely Samal Roll No.- 6134527 BBA

IIMT COLLEGE OF MANAGEMENT

Greater Noida-201306 (U.P)

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 Mr. vikas chadha, IIMT COLLEGE OF MANAGEMENT Greater Noida-201306 (U.P) who has continuously provided his valuable suggestions and guided me to make this project report more useful. I am extremely grateful to all people who has contributed significantly for completion and improvement of my research to make this report the ultimate one. Faculties, Staffs and friends and employees of Hero Motors Ltd have constantly encouraged me with their words, appreciation and advices. It is of course impossible to mention individually all of them.

LO VELY SAMAL

ROLL NO . 6134527 BBA

TABLE OF CONTENTS

1. Acknowledgement 2. Synopsis 3. Introduction A) Definition of Employee Welfare Schemes B) Facilities cover under Employee Welfare Schemes C) Need of Employee Welfare in organization 4. Company Profile A) Overview of the company B) History of Hero Motors C) Evaluation of Hero Motors

D) Mission & Vision of Hero Motors E) Values of Hero Motors F) Corporate Objective of Hero Motors G) Organization Structure of Hero Motors 5. Objective of the research

6.

Research Methodology A) Sample B) Instrument used C) Data collection method D) Project evaluation method

7.

Employee Welfare at Hero Motors A) Loan Policy B) Canteen facility C) Medical facility D) Uniform provided E) Transportation facility F) Training and development G) Telephone allowances H) Awards

I) Gifts and events 8. Data Analysis Comparison between companies regarding training cost Comparison between companies regarding loan facility Comparison between companies regarding canteen subsidy 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. 10. Interpretation Suggestions & Limitations

A) Suggestions for Hero Motors B) Limitations of project report 11. Questionnaire Sample of questinnaire

Project Title

Comparative Employee

Study

of

Welfare

Scheme

between Hero Motors Limited and Other Companies Location : Hero Motors Ltd.

Summary of Project:
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.

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.

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 organizations 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

RESEARCH METHODOLOGY:
Selecting the companies for the puepose 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

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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 (e.g. facilities, facilities, lockers) Loan personal and facilities, security personal arrangements recreational refreshment,

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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Personal Growth Facility

Working Condition

Safety & Security

Other Facilities

Loan Facility

EMPLOYEE WELFARE SCHEMES

Recreational & Refreshment Facility

Transportatio n Facility

Medical Facility

Canteen Facility

Leave & Holiday Facility

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Different facilities cover Employee Welfare Scheme:

Working Condition

under

PLANT TIMINGS ENVIRONMENT

OFFICE ENVIRONMENT

1. Ventilation 1. Air-conditioned deptt. 1. Shifts 2. Lighting 2. Seating arrangement 2.Overtime 3. Temperature 3. General Cleanliness 3.Breaks 4. Humidity 4. Personal computer/Laptop 5. Elimination of dust, Smoke, fumes etc.

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Personal Growth Facility

TRAINING PERFORMANCE FACILITY

EDUCATIONAL FACILITY MEASURE

1. Internal Training 1. Library 1. Regular & effective 2. External Training 2. Debating Union appraise 3. Workshop & Seminars 3. Workers childrens 2. Monetary/ Non schools monetary awards

Safety & Security Measures

FIRE ARMED SECURITYTECHNICAL MEASURES PROTECTION GUARD PROTECTION FOR ACCIDENT PROTECTION

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Recreational Facility

CLUBS 1. Gymnasium Picnic 2. Creches Foundation day 3. Recreational Club Cultural evenings celebration

EVENTS 1. 2. Factory 3. 4. Festivals

Refreshment Facility

SANITATION FACILITIES 1. Toilets 2. Wash-basins Snacks at breaks 3. Water & Waste disposal cooler 4. Dustbins & Spittoons

OTHER 1. Rest room 2. Tea & 3. Water

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Medical Facility

DISPENSARY TREATMENT 1. First-Aid 2. Regular Doctor case 3. Medicines for minor injuries & illness medical check-up 2.

INDIVIUAL 1. Hospital & Medicine cost for accidental Free

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Other facilities

UNIFORM CHILDREN FESTIVAL HOUSING TRAVELLING SCHOLARSHIP GIFTS

Need for Employee Welfare:

Intellectual, physical, moral, social & economical betterment of employees

Create & improve organizati onal image

Employee Welfare Schemes

Ensure continual commitment of employee towards organization

Fulfilling Governmental Laws, Statutory Provisions or required by customs of the

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OVERVIEW OF THE COMPANY:

Company Name: HERO MOTORS LIMITED Company Address: Ghaziabad, U.P. 10th Km Stone, G.T. Road, P.O.-

Dujana- 203207, Dadri, Distt- Gautam Budh Nagar,

Industry: Automobile Spareparts

Product range: Gear block, Cylinder block, Swing arm, Main stand, Side stand, Chain case etc. New Comings: Cyclomoto Mother concern: HERO GROUP OF COMPANIES:

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Hero Cycles - Founded in 1956, largest manufacturer of cycles in the world, manufacturing over 6 million cycles per year. Hero Honda - Joint Venture with HONDA, Japan largest Motor cycle manufacturer in the world, manufacturing over 2.5 million motorcycles per year Hero Motors - Auto component outsourcing / scooter & Step through maker & parent company of Hero Global Design. Hero Global Design Design/ Engineering/ Prototyping and Manufacturing support services. Munjal Showa - Joint Venture with Showa, Japan largest manufacturer of shock absorbers in India VI) Sunbeam Auto & Munjal Castings - Aluminum die casting Unit E Systems - Soft ware services 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, P.O.- Dujana203207, Dadri, Distt- Gautam Budh Nagar, Ghaziabad (UP) III) Foundry Project: Plot No. 192, Sector-4, Manesar, Gurgaon

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ACHIEVEMENTS:
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. Hero Group Management has been acclaimed internationally by World Bank and BBC. HSBC-Merril Lynch has estimated Hero Group would be among the Top Value Creator in 2001-2004. Hero Honda Motors was ranked 3 rd amongst top Indian companies Review 2000-Asias leading companies award (2003) by Far Eastern Economic Review. Hero Cycles Limited is a Guinness Book Record holder since 1986 as the wolrds largest manufacturer of bycycles, with annual sales volume of 5.2 million bicycles in FY 2004. 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.

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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. Hero began its journey around four decades ago. Munjal Brothers, the founders of the Hero Group, started out in 1950 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. Hero Motors is the part of the 7800 crore Hero Group with diverse interests in manufacturing engineering design, corporate services and value added engineering. 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

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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. At Manesar a different foundry project is also going on for establishing another big production plant over there.

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

27

engineering service provider business. HML now supplies automotive spare parts like gear block to Rotax (Austria), Cylinder block to L.G. and Swing arm; Main stand; Side stand; Chain case etc to Hero Honda. HML already stop producing vehicles but from 2006-2007 it will only provide vehicles for Sri Lankas market in complete knocked down stage and final assembly will be made at Sri Lanka. HML is currently in the process of setting up a ferrous Casting Foundry. This is expected to become one of the worlds largest foundries in three years time. We have tied up with a European major for technology and marketing.

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EVALUATION OF HERO MOTORS:

1988 - Set up to manufacture mopeds in technical collaboration Styer Daimler Puch, Austria 1993 - Became Indias largest exporter of two wheelers 1995 - Launched Indians first big wheeled PTW in technical collaboration with Malaguti, Italy 1998 - Started development of four stroke engines in technical collaboration with Briggs & Stratton, USA - Designed two vehicles in technical collaboration with I.D.E.A Institute, Italy - Formed HERO GLOBAL DESIGN 2001 - Launched HGD designed specialized moped HERO POWER range 2002 - Launched Indias first four stroke moped HERO SMART 2003 - Launched step thru motorcycle - fully designed by HGD HERO- STING Entered into agreements with ROTAX for engine & part development & plant up gradation

30

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

A View Of Main Building Of Hero Motors Plant, Ghaziabad

31

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GO FURTHER

Offering integrated engineering Solutions of world class standards to Global Automotive Industry

33

We focus on process to deliver the end results. We encourage Plan first FOCUS ON RESULT ORIENTED PROCESS We accept failures, if lessons have been learnt from these failures. ACCEPT, LEARN & IMPROVE FROM FAILURES We take decisions in the light of Service, Quality, Delivery and Cost in the same order of priority. SQDC OUR WAY OF DECISION MAKING We provide equal opportunities to all for growth in their career with HERO. ORGANIZATIONAL GROWTHTO INSPIRE ALL ASSOCIATED INDIVIDUALS We encourage and promote work environment based on internal customer-supplier relationship. Those who run extra mile to bring improvement in customer (internal/ recognised.EVERY ONE IS external) satisfaction are

CUSTOMER / SERVICE PROVIDER AT HERO

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35

SAFETY-

No. of accident

PRODUCTIVITY-

1. Delivery performance 2. Machine uptime 3. Product development time

QUALITY-

1. Customer rating 2. BOP rejection 3. In-house rejection 4. Customer end rejection

COST-

1. Cost of poor quality 2. Premium fright

MAN DEVELOPMENT-

Training Mandays

36

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 organizations 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

37

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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: Primary Data: Through Questionnaire Interview method Details of data regarding cost from files of Finance Department. Personal observation of every welfare facility

39

PROJECT EVALUATION METHOD: 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 and charts and evaluation of the study. Analysis of the information gathers from other companies and makes comparison of total employee welfare schemes in different parameters.

40

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Employees are always important the people who put Hero Motors business philosophy into practice. HML wants employees who can carry out their missions and fulfill their roles, with the aim of contributing to the enhancement of the Companys enterprise value, thereby winning societys 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, HMLs welfare and benefits system is designed to provide an environment in which employees can enjoy fulfilling lives both at work and at home, and make the most of their abilities. While providing a workplace where employees can focus on their work without distractions, the welfare and benefits system also helps

42

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 loansPersonal 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 staffs there is no interest charged up to Rs. 5000/- and recovered in 10 equal monthly installments from the employees salary, above this amount 14% interest are charged/ year and recovered in 20 EMI. For workers up to Rs.15000/- is interest free above which 14% interest are charged. 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:

43

G.M and above - 2 Lac A.G.M I A.G.M II Managers - 1.5 Lac - 1.25 Lac - 1 Lac

CANTEEN FACILITY:
Canteen is not only a place for taking lunch or dinner. It is a place where employees on department can meet with employees of other departments and can make some chitchat 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. Snacks coupons are distributed at 35 paise to workman 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

44

free lunch during their training periods. Except these meal allowances for lunch 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 or candidates of interview) who come for any official purpose.

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COST OF LAST FINANCIAL YEAR BEHIND CANTEEN : Total meal allowance (on duty) paid to employees : Rs. 1,96,800/Canteen bill (including pantry cost) 22,43,200/Refreshment & tea, snacks expenses 6,50,000/: Rs. : Rs.

MEDICAL FACILITY:
At Hero Motors there is a dispensary where medical practitioner visits regularly, daily 1 hour a doctor attends patients. All time first-aid facility and medicines for any minor illness are available from welfare officer. 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: Cost Year April 200559,700 12,000 23,300 39,000 97,400 4,50,000 72,000 60,000 60,000 medicines for Cost behind Doctor's fees

employees treatment

March 2006 April 2004March 2005 April 2003March 2004

Hero Motors gives its employees mediclaim facility, under which the policy premiums for employee are given by Hero Motors and policy premium of employees family members are paid by employee.

MAXIMUM AMOUNT PAID AS PREMIUM AT DIFFERENT LEVELS: MD and Family 5 Lac Vice President and Family 4 Lac General Manager I/II 3 Lac

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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. Two pants and two shirts for men and sarees and salwar suits for ladies are distributed yearly. Sweaters and jackets are given alternatively in every winter. Shoes, socks, belts, woolen socks are also provided to workers. As per requirements of the job, personal protective equipments like masks, gloves, safty shoes, dangri suits (for paint shop and machine shop workers), caps etc are also provided to workers.

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COST OF UNIFORMS OF LAST THREE FINANCIAL YEARS: Cost pants, Year shirts,saree s cost April 2005March 2006 April 2004March 2005 April 2003March 2004 3,86,000 61,500 36,000 60,000 350 4,02,300 40,800 60,600 1,71,600 840 3,72,500 2,51,000 1,47,500 1,83,000 450 and stitching of Cost woolen clothes of Cost personal protective of Cost leather shoes of Cost other and accessories of

equipments socks

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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 employees dissatisfaction and lost of good employees which can be a severe problem for any organization. Hero Motors has three buses, which give trips in four different shifts. The buses cover different routes for their workers coming from different places.

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COST BEHIND BUS SERVICE IN LAST FINANCIAL YEAR : RS. 9,65,000/-

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 employees 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

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Motors invites/hires external trainer from outsides for Workers 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. Cost of last three financial years behind training and development programs: Cost Training Years March'2005April'2006 March2004April'2005 March'2003April'2004 forCost Workshops 3,76,400 3,34,300 5,89,000 63,800 1,000 37,600 4,40,200 3,35,300 6,26,300 ofTotal Cost

Seminars &

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Telephone Allowance:
Todays 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 month General manager I / II month Assistant General Manager, Manager month : Rs. 1500/- per : Rs. 2200/- per : Rs. 3500/- per

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Assistant manager I / II month Executive I /II /III, Supervisor I/II/III

: Rs. 1000/- per : Rs 600/- per month

Motivational Tool: Awards :

It is easy to buy ones time but time may not produce any results unless it is a productive time and time can be productive when it is possible to buy ones positive mind and attitude. There is a very simple way to buy ones positive mind by motivating him/ her. Motivated employees can give two times extra than a dissatisfied employee. Rewarding employees is that simple tool. Award is a way of appreciating ones 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 Twoin-One Music System, 15 years CD Player and 20 years

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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 :

It is an old says that all works and no play make jack a dull boy. So celebration of various festivals and events are necessary to welcome a wind of relieve ness 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 Motors 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 laddo and snacks are provided by company. Special lunch is provided in all special occasions. Independence Day, Republic Day is also celebrated in Hero Motors.

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Hero Motors gives its employees Diwali Bonus & gifts with sweets in every year.

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Comparison between companies regarding training cost: Companies HML ESCORT MOTHERSON NIPPON Total Cost 450000 500000 200000 60000

58

500000 500000 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Training Cost 60000
HML ESCORT MOTHERSON NIPPON

450000

200000

Training Cost incurred behind per employee in a year in different companies:

Companies Cost/employee/year HML 1000 ESCORT 143 MOTHERSON 348 NIPPON 30

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1000 900 800 700 600 500 400 300 200 100 0

1000

HML ESCORT

348 143 30

MOTHERSON NIPPON

Cost/employee/year

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COMPARISON BETWEEN COMPANIES REGARDING LOAN FACILITY:

Companies Maximum loan amount HML 200000 ESCORT 50,000 MOTHERSON200000 NIPPON 50,000

200000 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0

200000

HML ESCORT MOTHERSON NIPPON

50,000

50,000

Maximum loan amount

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Maximum number of loan given by companies in a month: Hero Motors Limited : 10 15 5

Escort Tractor Limited : Kenwood Nippon :

Motherson Automotive Engineering Technologies : 25

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Comparison between companies regarding canteen subsidy:

Canteen Companies Subsidies HML 3 ESCORT 7.25 MOTHERSON 12 NIPPON 0

Canteen Subsidies NIPPON MOTHERSON 7.25 ESCORT HML 0 3 5 10 15

63

0 12

Comparison between companies regarding medicine cost:

Companies Medicine Cost HML 120 ESCORT 60 MOTHERSON 104 NIPPON 61

Medicine cost/employee/year
61 120 HML ESCORT MOTHERSON NIPPON 104 60

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Comparison between companies regarding mobile allowance:

Total Companies allowance HML 800000 ESCORT 600000 MOTHERSON 1800000 NIPPON 450000 Mobile

Total Mobile allowance

450000 1800000 600000 800000

NIPPON MOTHERSON ESCORT HML

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Comparison between companies regarding Gift cost:

Companies Gifts cost HML 700 ESCORT 1000 MOTHERSON 1200 NIPPON 2000

Gift cost/employee/year
2000 1500 1000 500 0 Gifts cost

Comparison between companies regarding Breaks :

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Breaks Companies minutes) HML 60 ESCORT 30 MOTHERSON 40 NIPPON 50

(in

Total Break Time

70 60 50 40 30 20 10 0
SO N O R H ER IP P N C O N M L T

60 50 40 30

ES

M O TH
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In Hero Motors different amount is granted as loan to different managerial level where as in Escort the maximum amount of loan is fixed for all as per their loan policy. Again in Motherson the highest amount is 2 lac which is fixed but in Nippon the maximum amount of loan granted to an employee does not exceed the gross salary of the person. 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.

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Motherson is a large company, it has 4 units situated in four different locatons. Its expend Rs.24 lac as mobile allowance but this amount they expended in their 4 units and per unit expenditure is Rs.6 lac. In HML it is Rs. 8 lac, in Nippon it is Rs. 4.5 lac. But the highest amount paid by Escort that is Rs. 18 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 /- (perpair 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 break are given and in

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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.

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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 very much satisfactory in Hero Motors but shortage of meal is every day problem, in canteen they should make some extra amount so that employees come in late at lunch hour should not suffer from this problem. Hero Motors has to pay attention to this problem, to solve this they can follow a

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rule that employee who take lunch in canteen should submit their coupon to canteen in that day morning.

Transportation facility: There is no transport facility given for staff in general shift. There is no easy convenience is available from Lalkuan to factory. It is very important cause of loosing energy and valuable time of staffs and even number of buses arranged for workers is not sufficient.

Refreshment facility: It is observed that there is no arrangement of snacks or refreshment. It can be arranged by Administrative Department in canteen. It may be subsidized or not subsidized as per management decision. This facility can easily motivate people for staying and completing their target. More over drinks and dry foods should be available in canteen so that employee can consume those by purchasing any time.

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Assessment of training program: Hero Motors expends lots of money for employee improvement in training and development program but it is also very necessary to evaluate the effects of those programs in terms of productivity and positive attitude of employees.

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 different field can fulfill that. More over it is not necessary to force them for that but to make an arrangement for employees to gain knowledge.

Recreational Club and Study circle: It is suggested to Hero Motors that they should open a recreational club so that employees can spend some times after working hour (if they want) for some creative purpose to improve their inner

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qualities and hidden talent. Again these types of clubs helps to improve organizational climate as it increase informal communication. Hero Motors can arrange a study circle in which employees can join voluntarily and can make discussion on any recent topic related to their work field or any general. It helps to increase knowledge base and also communication power.

Ambience and Seating arrangement in gate : Like any good organization Hero Motors has a well furnished reception area but there is a says that first impression is the last impression and in gate where any visitor has to wait for some time to meet some body and the seating arrangement is very bad there and the worst thing is that the latrine and water cooler are in very situation. So Hero Motors should pay attention to this.

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Different seating arrangement for HR department: In Hero Motors HR department and workers 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 workers but a different cell should provide to other employees of HR department where a separate cabin can be given to HR head. Because workers are entered in any time in time office which create disturbance in other official works.

Social Get-together and cultural events: Hero Motors should arrange any social get-together like picnic that is very necessary for Hero Motors because due to lack of such get together employees are 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

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to show their creative talents. Specially 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

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fully maintained as per their companys rules in actual practice.

The costs (numerical values) of different welfare activities in 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 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 previous plan.

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QUESTIONNAIRE

PROFILE OF RESPONDENT

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Name Company:---------------------------------------------------------------------Address Name Employee:---------------------------------------------------------------------Age; -------------------------------Gender--------------------------of

of

the of

Company:---------------------------------------------------------------

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: ii) Water: iii) Tea/ Coffee e) Office Accessories: Total No. : Hygiene Cond. Total No.of water cooler: Hygiene Cond. No./Day: No. Per Deptt.

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I) Personal

Total cost/ deptt:

Computer/Laptop: ii) Telephone/ No. Per Deptt. Intercom Facility 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: b) Price- Snacks: I) Coupon Rate: ii) Subsidies: I) Coupon Rate: ii) Subsidies:

4. Medical Facility a) Regular Doctor/ b) Dispensary: First Aid

I) Visit/Week: ii) Cost/year: &i) Avg. Cost/year.: ii) Availability:

Medicine:

c) Total cost/ year: 5. Scope for Personal Growth a) Training Facility: i) Ways of training:

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a) Internal c) On-the-job

b) External d) Off-the-job

ii) No. of Training/month: iii) Work related: iv) Cost/Year: v) Mandays/employee/year: i) Avg. No. of Seminar & Workshop attended/Year.: ii) Avg. cost for attending Seminars & Workshop/Year.: I) Appraised Effectively: ii) Half yearly/ Yearly: iii) Regular Scope d) Awards & Certificates: for Promotion: I) Monetary Award: ii) Long Service & Retirement Award: iii) Regular Attendance Award: iv) Any Other:

b) Seminar & Workshop: c) Performance Appraisal:

e) Library Facility:

6.Transportation Facility

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a) Bus Service:

I) No. of Buses: ii) No. of trips/ shifts:

b) Allowance: 7. Telephone/ Mobile Facility a) Mobile allowance: FOR DIFFERENT b) Telephone Allowance: LEVELS: FOR DIFFERENT Rs. Rs. Rs. Rs. Rs. Rs. /- per month /- per month /- per month /- per month /- per month /- per month

LEVELS: 8. Organizational Climate a) Communication flow:

b) Way of supervision:

9. Safety Measure a) Fire Protection: b) Chemical/Hazardous Protection: c) Measure for Accident Protection 10. Security Measures a) Manpower Security: I) Total No of security man: b) Technical Protection: 11. Other Facilities

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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) f) g)

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BIBLIOGRPHY

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BIBLIOGRAPHY
MAGAZINES:
Auto India Auto Sports Business Times Business World

NEWSPAPERS:
The Times of India. The Hindustan Times Economics Times

WEBSITES:
www.herohonda.com www.herohondatwowheelersindia.com www.heroindia.com www.googlesearch.com

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