Human Resource

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Index of H.R. department:-
SR. no. No. Content
1 Organizational Structure 129
2 Structure Of HR Department 130
3 Introduction of H.R. department 131
4 A) Talent Acquisition
1 Job Analysis 132
2 Human Resource Planning 133
3 Recruitment 134
4 Selection 136
5 Placement 137
6 Induction Training 137
7 Transfer 138
8 Promotion 140
9 Demotion 141
5 B) Development Function 142
1 Performance Appraisal 142
2 Training 144
3 Executive Development 147
4 Carrere Planning &
6 C) Compensation 148
1 Wages & Salary Admin.
7 D) Maintenance Function 151
1 Health & Safety 151
2 Social Security Measures

3 Recreational Activities 151
4 Welfare Facilities 151
5 Statutory Provisions 152
10 Time office 152
11 Conceptual firm work of
Welfare activity in KRIBHCO


Chairman/Board of Directors
Operational Director
Managing Director
CM (P)


Chief Manager

Chief Manager
Senior Manager
Deputy Manager
Sr. Assistant Manager
Assistant Manager
Junior Manager
 Introduction of H.R. department:-
KRIBHCO consider its human resource as a greatest asset. It invests time
and Money to develop its employees through. Various human resource
department mechanisms. Regular in house training programs sponsorship
to outside training institution, brainstorming problem solving work shop
etc are conducted for employees at all level.
In the KRIBHCO human resource department provides specialized advice,
assistance and information to line executives so that they may concentrate
on their respective functions. The department prepares programmers
concerning recruitment, selection, training appraisal etc of employees in
consultation with other department.
 History of the department:-

Efforts since the last 15 years can be divided 3 distinct phases.
1) Foundation (1980-1987)
2) Consolidation (1987-1993)
3) Growth (1993 onwards)
This division has been on the basis of the various functions and role that
the department had to pay along the line starting right from the time of its
introduction as a training department.
“KRIBHCO” considers its human resource as the greatest assets. It invests
time and money to develop its employees through various HRD
mechanisms. Regular in-house training program sponsorship to outside
training institution, brainstorming problem solving workshops etc. are
conducted for employees at all level.

(A) Talent Acquisition Function:-
1. Job Analysis:-
In KRIBHCO, Job Analysis is done by framing Job description and Job
 Job Description:-
It is detailed study of functions and responsibilities involved in the job. In
this organization, the basis of job description for all the jobs are the
position, grade or level of job, division, location, department, definition of
job purpose, reporting to, brief accountabilities and responsibilities,
decisions, education, functional skills & experience required.
 Importance of job description for the organization:
The job description is very important for the organization to
decide the area of work of the employee. It helps the organization
in delegating the responsibility and authority. It makes the
reporting system clear. Apart from all these things, job description
is very important in creating advertisement for the recruitment of
new persons. It is a tool with the organization makes the employee
accountable for his/her job.
 Importance of job description for the employee:
Job description helps the new employee to understand the purpose
for which he/she has been appointed for particular job, after
reading the job description, there will be no confusion left in the
mind of the newly appointed employee. From this, the employees
can the scope of his work in the organization

 Job Specification:
It is the process of studying the experience, qualification & various skills
required to perform the job.

2. Human Resource planning:

It is the process of estimating the present and future manpower
requirement of the organization.

Phase: 1

In the organization, when the analysis of business plan is done, need of
manpower is felt. Here, the business plans include the future expansion
projects, attrition level/ turn over.

Phase: 2

 Investigation:-

Here, the assessment of the present and potential capabilities of the present
employee is done qualitatively and quantitatively. Apart from this, the
study of employee turnover is done so as to carry out realistic HRP.

 Forecast:-

 Demand Forecasting:-

The technique of demand Forecasting used by the organization is
managerial judgment and work study method.

 Supply Forecast:-

The sources of supply used in organization are campus recruitment and
experience person.

o Estimating the manpower gaps
o Action plans

Phase: 3

After the action plans are implemented, the organization checks whether
the persons are recruited of right number, right time and right place.

3. Recruitment:
“Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.”
It is a process of identifying & attracting human talent so as to build a pool
of qualified job applicants. The recruitment process divided in 5 stages.

 Planning:
Planning of future applicants is done from human resource planning. Here,
from workload of future and current projects (i) the nature and level of
human resource required & (ii) No. of vacancies of positions are

 Strategy Development:

(I) „Make’ or ‘Buy’ employees.
This organization recruits fresh engineers from the campus and give them
training required. If the organization doesn‟t want to groom employees,
the professional (MBA) or experienced or both type of engineers are

(II) Geographical distribution of market comprising job seekers.
The organization looks into national market for managerial and
professional employees, regional or local markets for technical employees
& local markets for clerical employees.

(III) Sources of recruitment.
The organization uses employee referrals and previous applicants as
internal sources of recruitment and campus recruitment, job portal
(,, etc.), job contractors as external source of
recruitment. The kribhco welcomes talented college graduates. This
organization is a preferred employer at India‟s top engineering and
business school because this organization offers competitive
compensation, diverse opportunities in terms of business and roles, fast
growth and quick assumption of large responsibilities. For the same
reasons, it is able to attract the best and brightest talent at all levels.
 Searching:
 Screening:
 Evaluation & Control:
Here, the effectiveness of the recruitment process is evaluated within the
constraints of budget for recruitment function.

 The need for recruitment may be due to the following reasons
a. Vacancies due to promotions, transfer, retirement, termination, permanent
disability, death and labour turnover.
b. Creation of new vacancies due to the growth, expansion and
diversification of business activates of an enterprise. In addition new
vacancies are possible due to job specification.

 Sources of Recruitment:

 Internal:
o Promotion.
o Transfers
o Internal notification (Advertisement)
o Retirement
o Recall
o Former employees
o Miscellaneous external sources. Etc.

 External:
o Campus Recruitment.
o Press advertisement.
o Management Consultancy service & private employment exchange.
o Deputation of personnel or transfer.
o Management training schemes.
o Walk-ins, write-ins, talk-ins.

4. Selection:-
It is a process of differentiating between the applicants in order to identify
and hire those with a greater likelihood of success in a job.

 Process of selection:-
(1) Preliminary interview:-
This interview is conducted when the organization recruits college
graduates in the campus recruitment while this is avoided when
experienced persons are selected.
(2) Selection tests & Group Discussions:-
In case of college graduates/fresh engineers, Organization takes different
test such as Intelligence Test, Trade test, Mechanic Efficiency Test,
Aptitude Test, Personality Test, Attitude Test, Psychological Test. Group
Discussions are also conducted to check the awareness level and command
on language.
(3) Employment Interview:-
This is a crucial stage of selection. In case of experienced person, this is
the first test of selection. Here, the interviewer checks different aspects of
the applicant and then selects.
(4) References and background check:-
This step is some time avoided. Only when they feel need of it, they
search for additional information on the background of the applicant. This
reference & background check is also done before the employment
(5) Medical test:-
If the references give favorable opinion about the selected candidate they
are sent for medical checkup.
(6) Job offer:-
After passing through all the stage of selection, the applicant is offered the
job by giving appointment letter. This letter includes joining date, salary,
location & training period.
(7) Employment contract:-
When special terms and conditions are there, contract of employment is
agreed between the employer and the applicant.

5. Placement:-
After the selection the applicant is placed in a particular department for
particular job.

6. Induction Training:-
In KRIBHCO, It is given for 2 months spanning from September to
December. The objectives of Induction Training to familiarize with the
company‟s business and operations, to provide orientation on Plants/
Assets & Function linkage, to get people together to develop “ WE”
feeling, to provide orientation on Policies & Procedures, to facilitate
smooth cross over from Campus to Company and to impact the
competence required to perform their functions.
This Induction Training includes industrial Fire & Safety‟s with practical
demonstration, visit to Power Plant, Environmental Management, Self
Development Programme, Information Technology & it‟s applicability in
Power Plant, Energy Management, Scheme Tracing, Orientation to
Operation, Maintenance & Project Development Departments, On Job
Training, Out Bound Training to learn Leadership skills & Team Building
and some other skills.
After the induction training, the trainees are placed in the production
department for particular job. For example, one may be placed for
handling boiler or generator or turbine or maintenance practice, etc.
7. Transfers:
Management may at its sole discretion, transfer an employee from one
post to another post or from one place to another or form one
establishment to another which may be in existence or may come in to
existence on a future date anywhere in India or abroad. On such transfer,
the concerned employee will be governed by terms and conditions
applicable to his category of personnel to the post and for establishment at
the place of his transfer.
Employees who are transferred from one location to another by the
management shall be entitled to the following benefits.
i. 6 days joining time.
ii. Settling Allowance.
iii. Daily Allowance for self and family members for journey period
iv. Expenses for transportation of personal effects as per entitlement provided
in TA/DA rules and costs incurred on the transportation of conveyance for
those drawing FLTE (Fixed Local Traveling Expenses.) However, the
above mentioned benefits will not be extended to employees who are
transferred from existing location to desired location on their own request
and will be entitled only for journey fare.

 Temporary Transfer:-
On a specific work requirement when an employee is temporarily
transferred from one station to another for a period not exceeding 180
days, the following benefits shall be extended to him:
i. Retention of township accommodation / company leased accommodation
on usual rent recovery. In case where the same has not been provided, the
employee will continue to draw HRA as applicable to his category of
employees posted at original Head quarter.
ii. Lodging facilities as applicable under TA / DA Rules subject to a
maximum period of 180 days.

iii. Cash allowance as applicable under TA / DA Rules shall be allowed in the
following manner.

For First 30 day‟s Full cash allowance
Beyond 30 days & half of cash allowance
Up to 180 days
Beyond 180 days Mil
iv. Traveling Allowance and Daily Allowance for self only as per entitlement.

No joining time shall be allowed on temporary transfer except actual
journey period.
The policies of Transfer in KRIBHCO:
(1) The transfers are affected on the basis of requirement.
(2) The authority of handling transfers is given to both HR Department & the
head of the department.
(3) The employees are informed about the reason of transfer.
The organization handles different types of transfers such as,
 Production Transfer
 Replacement Transfer
 Versatility Transfer
 Shift Transfer

8. Promotion:-
Promotion means to place or appoint a personon higher post with higher
salary more power and more responsibility. Promotion of an employee
automatically increases his responsibility and salary as well. He gains
higher promotion than his present designation. His reputation and status
also go up. Promotion is from lower level post to higher level post.
Promotion is an appreciation of accountability and loyalty. It is a reward
for good performance. It is a basic need of employee optimist and
ambitious and the organization can also acquire employee‟s loyalty and
their satisfaction.
In KRIBHCO, promotion is based on seniority cum merit basis. The
establishment section prepares the eligibility list of employees for
promotion twice in a year on May and November of each year up to
H / H1 grace, promotion are done at plant level by constituting committee
which conducts personal interview to assess the suitability of the
1) Preparation of list of eligible employees for promotion as per R & B
2) Bio data of the eligible for constitution of the department promotion
3) Making physical arrangement to the interview.
4) Preparation of selection proceedings.

The policies of Promotions in KRIBHCO:
(1) The basis of promotion is performance or merit.
(2) Promotions are given when vacancies are available and at the same time
the performance of the employee is good. If performance is good but
vacancy is not available or if vacancy is available but performance is not
upto the expectation, the promotions are not given.
(3) Job Analysis & Performance Appraisal is done before promoting

9. Demotion:-
If an employee is brought down on lower post from his present post it is
called demotion. It is contrary to promotion. Reduction in salary,
reduction in status, responsibility, and to bring down the employee on the
lower level from the upper level of organization are important features of
Demotion in any organization is very rare. The same is in KRIBHCO
demotion is occurs only in case of mayor indiscipline. This action is taken
after much inspection of the fault made. A special committee is formed for
the inspection of the whole matter and then finally a report in generated
whether the employee is found guilty or innocent. It even involves legal
and police formalities many times. Provisions of this indiscipline are
available of the „Major Indiscipline‟ is as follows:
1) Breach or habitual breach of the provision in the service rules farmed or
instructions or orders issued by the management from time to time and in
2) Insubordination or refusal to force.
3) Violation of any condition or term contract or employment.
4) Any big loss suffered by the company due to any employee‟s disregard of
operation or carelessness in operation or maintenance.
5) Acting in a manner prescribes to the interest or reputation of the
6) International non-submission late submission of immovable property
return in the manner prescribe rules of complete account of movable or
immovable properties acquired by the employee or concealment of any
material fact relating to acquisition of such properties.

Development functions are carried out to improve the knowledge, skills,
aptitudes and values of employees so that they can perform the present and
future jobs more effectively. The following are the different
developmental functions:
B) Development Function:-
1. Performance Appraisal (P.A.):-
The rating of employee should be done annually at one time. The first
page of the appraisal format is to be filed by the personnel Department &
passed on to the Appraisal officer by 1
week of April who will give his
rating by 10
April and send it to the reviewing officer. The Accepting
officer after recording his observation on the appraisal of the employee
will send the report to personnel Department latest by the end of April.
 The instructions provided in the appraisal from have to be carefully gone
through by individual appraiser bearing unmanned that the rater will be
rated eventually.

 In case of disagreement among the Appraising & reviewing officer, the
Accepting officer should hold discussion with all of them & finalize

 In case performance of employee is “Below average”, same be
communicating by personnel department after appraisal is accepted by
competent authority.

 There are four types of appraisal forms:-

A) Appraisal Form No.1:-

This form is used for employees in Grade “N” to Grade “Q”. This has a
forced rating scale. Performance is evaluated through five rating by
circling don‟t on the given traits.

 Traits:-

o Job knowledge
o Quantity of work
o Quality of work
o Attendance and punctuality
o Cooperation
o Initiative
o Care and Reliability

B) Appraisal Form No.2:-

This form is used for employees in Grade H1, H, G2, G1 and G.
Performance is evaluated through four point scale by giving the rank in
descending order like.

 Rank “4” for outstanding performance.
 Rank “3” for Average performance.
 Rank “2” for Average performance.
 Rank “3” for Below Average performance.

 Traits:-

o Job knowledge/skill
o Competence
o Initiative
o Work Relations
o Managerial
o Productivity
o Commitment and sense of Responsibility
o Appraisal skills
o Regularity & Punctuality
o Integrity
o Accountability

C) Appraisal Form No.3:-

This form is devised for executives in Grade F1, F, and E. performance is
evaluated through four point scale by giving the rank in descending order
as shown above.

 Traits:-

o Knowledge
o Time Management
o Foresight and planning
o Decision Making
o Communication
o Responsibility
o Initiative
o Inter personal Relations
o Development of subordinates
o Organizing Ability/Leadership
o Integrity

D) Appraisal Form No.4:-

This form is used of executive in Grade “D” and above. This has provision
for self appraisal by appraises which is required to be evaluated by the
Appraisal officer.

 Traits:-

o Knowledge
o Time Management
o Foresight and Planning
o Decision making
o Communication
o Responsibility
o Initiative
o Inter-Personal relations
o Development of subordinates
o Organizing Ability/Leadership.
o Integrity.

2. Training:-
Organization become dynamic and grows through zeal, caliber & vision of
their H.R. “KRIBHCO” has always considered development of human
resource as its most important responsibility because this alone ensures the
well being and growth of the organization. Training and development
activities of society from a part of continuous process in integrating the
organization needs and the needs of individuals, “willingness to change”
for betterment is the pre - requisite for moving towards excellence.
Training program at KRIBHCO has a very wide scope which is as
 To minimize the time gap in learning new development.
 To impart or inability to new entrants to enable them to take up their
assignment effectively.
 To create an environment of “we felling” and enhance accountability of
Organization conducts different types of training programmes such as
Orientation training, Job training, Safety Training, Promotional training,
Refresher training & Remedial training.

(1) Orientation & job Training:-
In KRIBHCO, It is given for 2 months spanning from September to
December. The objectives of Induction Training to familiarize with the
company‟s business and operations, to provide orientation on Plants/
Assets & Function linkage, to get people together to develop “ WE”
feeling, to provide orientation on Policies & Procedures, to facilitate
smooth cross over from Campus to Company and to impact the
competence required to perform their functions.
The Job Training includes industrial Fire & Safety‟s with practical
demonstration, visit to Power Plant, Environmental Management, Self
Development Programme, Information Technology & it‟s applicability in
Power Plant, Energy Management, Scheme Tracing, Orientation to
Operation, Maintenance & Project Development Departments, On Job
Training, Out Bound Training to learn Leadership skills & Team Building
and some other skills.

(2) Safety Training:-
The trainees are exposed to various safety techniques to handle machine
on the job and in the whole plant. This training is conducted by Fire &
Safety Department of the organization.

(3) Promotional Training:-
The organization conducts various seminars and programmes to enhance
the managerial skills required at higher level.

(4) Refresher Training:-
On the basis of requirement & when organization feels it is needed,
refresher trainings are conducted for the revival of old concepts.

(5) Remedial Training:-
It is given when new & experienced person is hired to align his or her way
of functioning with the organization goals.

 Training need Identification:-
Training needs in the organization are identified from the performance

3. Training program:-

HRD department at “KRIBHCO” is conducting various programs for two
categories of persons.

1) Non-Employees
2) Employees

1) Non-Employees:-

HRD department of KRIBHCO is dealing with training apprentices under
apprentice act.1926 for the categories such as ITI and Diploma, Graduate.

o Fitter
o Turner
o machinist
o Wireman
o Electrician
o Tool and dye
o Mechanic
o Draughtsman
o Electronics
o Computer Application

2) Employees:-

o Vocational training programs
o In-house Training
o Induction Training

3. Executive Development:-
It is a process of developing managerial talent through appropriate
Here, the organization selects some potential employees who are capable
of handling higher risk. Then, management / HOD gives more
opportunities and challenging jobs. For example, if the HOD is on one
week leave, the potential employee is asked to assume the job of the Plant
Head for one week. Then, he is evaluated on different parameters to
decide whether to assign him more responsibility or not. Thus, practical
executive development is done. Apart from that various motivating
sessions on self development, seminars by management gurus and picnics
and sports to develop sportsmanship and leadership skills respectively, are
4. Career Planning and Development:-
It involves planning the career of employees and implementing career
plans so as to fulfill the career aspirations of people. It involves mobility
of personnel through promotions and transfers.
Here, potential employees are given more responsibility and average
employees are given average risk involving responsibility.
For example, the employees who are capable of handling high risk are
given the responsibility of handling the project while average employees
are given plant related functions.

C) Compensation Function:-

1. Wages and salary Administration:-

 Method:-
The wage and salary is decided on the basis of performance. Wages &
Salary Administration refers to establishment and implementation of
sound policies and practices of employee compensation. Generally, the
remuneration paid to the workers known as wage while the payment made
to office staff known as salary.
Wage is the remuneration paid for service of labour in production, skilled
and unskilled person or employer, worker technicians. Salary refers to the
monthly paid to clerical administrative and professional employees.
A sound wage & salary administration tries to achieve these objectives.
a) For Employees:-
 Employees are paid according to requirement of their job. This eliminates
 The changes of favoritism are greatly minimized.
 Employee‟s morale & motivation are increased because wage program can
be explained & based upon facts.

b) To Employer:-
 A wage & salary Administration reduces the likelihood of friction &
grievance over wage inequities.
 It enhances an employee‟s morale & motivation because adequate and
fairly administered wage are basic to his wants and needs.
 It attracts qualified employees ensuring an adequate payment for all the
The information about employees, presentation and absence provided by
the time keeping system is directly linked with computer section. Then
after pay slip is preferred with the Master-Date. Finally after all additions
and deductions pay is paid to the employees. The productivity linked
bonus and incentive schemes also introduced by the KRIBHCO. The
employees of KRIBHCO have been paid bonus linked with productivity
i.e. annual capacity utilization of the plant and materials.
In KRIBHCO calculation of wage and salary is done by establishment
section in Finance & Account Department. In this section, wage and salary
is calculated on computers. It is the responsibility of personnel department
which has to handle wages and salary distribution together with account
Salary are payable on the last but on working day of every month. In this
organization for the wage and salary administration, first prepared the
Master-Date under the personnel department. In this Master-Date there are
various columns like grade, employee number, pay scale, code, p.p.
Account number, name, basic-pay, living-pay, house rent, over-time pay,
medical allowance and other facilities rant etc.

 Structure of Wage & Salary Administration:-
o Wages:-
Labours are recruited through labour contractors. The organization makes
an agreement with the contractors and pays the whole amount to them.
Then, the contractors pay wages to the workers.
o Salary:-
The salary decided by the head of the department. Before deciding the
salary of the employee, market survey and industry survey for salary are
conducted and the growth of the organization is considered.
o Incentives:-
Incentives are provided on the basis of performance i.e., whether the
actual performance is as per the expected, above expected or below
expected. Incentives are given yearly.
o Fringe benefits:-
Group Accidental insurance, gratuity, provided Injury allowances, Leave
Air travel with A/C mobile phones, laptop, membership in club,
swimming pool, holiday packages for family, dinner in 5 star hotels.
o Bonus:-
It is also provided on the basis of performance in the end of the year.
 Grade system for employees in KRIBHCO:-
As mentioned before kribhco has adopted grade system for employees.
The grade system is from A to R grades. Some of the grades given to
employees for their post are given below:

E) Maintenance Function:-
1. Health & Safety:-
The health & safety is an integral part of KRIBHCO. The organization
provides medical aid, annual health check up of all employees.
2. Social Security Measures:-
The organization provides provident fund, gratuity, injury allowance &
group insurance.
3. Recreation Activity:-
The organization carries out various activities & provides facilities as a
part of recreation. It arranges annual picnics, get together of different
departments, movie shows, inter-department cricket match, plant
grades scales
A Manager
B Directors
B1 Executive Director
C Senior general manager/General manager
D Joint general manager/Chief manager
E Senior manager/CMO
F Manager
F1 Deputy Manager/senior M.O.
G Sr. Assistant manager/Sr. area manager/Sr. engineer/foreman
G1 Assistant manager/Engineer/Assistant foreman
G2 Assistant Engineer/Assistant manager
H Joint manager/P.S.
achievement celebration, birthday celebration, fun day celebration with the
games like Treasure Hunt. It provides facilities such as gym, swimming
pool, and library, horse riding club, tennis ground & membership of

4. Welfare Facilities:-
(i) Intramural & Extramural:-
The organization provides housing (kribhco nagar n HAEP Township),
transportation (such as Bus, Car, Train & Airways for more than 1200km
traveling), school (Sunflower School in Gujarati medium) and central
school (Kendriya vidhalaya no.2) in Hindi & English medium. holiday
homes (Leave Travel Allowance), Hospital, Vocational Guidance &
various recreation activities.

5. Statutory Provisions:-
The following welfare facilities are provided under The Factories Act
(a) Sitting Facilities for occasional rest for workers who are obliged to
work in a standing position.
(b) Firstaid boxes.
(c) Canteen.
 Time office:-

Time is considered as money. So we have to the value of money is equal
to value of time. Time keeping in big organization is very essential
function. Therefore it is necessary to adopt sound system in order to save
and avoid dispute regarding attendance. KRIBHCO is enough sensitive
towards optimum use of time. It has as separate time office concerned
with security department. It is situated at the main gate of company. Time
office runs for 24 hours and dealing with pub services.

The chief time keeper (Jr. Mgr-P&A) supervises the work of time office,
under him there are the four assistant to carry out the daily system
maintenance of attendance register for staff category, overtime, leave
management, etc.

 Main function of time office:-

 Control daily attendance
 Leave management
 Issue of punching card
 Maintain all types of record of employees as per requirement of Gujarat
factory rules/ standing order act.
 Maintenance of over time
 Administration of shift and claim of shift allowance
 Maintain the record of absent, leave without pay, CL, EL and leave
 Distribution of canteen coupons
 Time office also handles the function of loans and claim like.

o House building loan (HBL)
o Local travel expenses(LTE)
o Conveyance loan
o Medical assistance
o Salary advance
o Level travel concession

The attendance record of each employee is kept systematically before
going on a leave employee have to take the permission of the department
head. The employees are dividend in to two categories.

1. Staff personnel
2. Worker

H‟ grade and above employee sign in attendance register in respective
department. When employee go on a tour or on a sanctioned leave
employee have to sent approved application to time office for record.
Attendance registered maintain at time office.

„H1‟ grade and below workers entered into company they have to punch
the card. There are automatic machine to punch the card.
When they leave the company at that time, they have to follow the same
procedure. So that the reward of each employee can be made available
regarding their presence in the organization.

 Conceptual Formwork Of Welfare Activity In KIBHCO:-

 Introduction:-

Welfare is based concept employees welfare is a compressive term
including various services, benefits and facilities offered by the employees
though such a generous fringe benefits the employers make life worth
living for employees the welfare amenities extend in addition to normal
wages & other economic rewards available to employees as per the legal
The various welfare measure provided by the employees will have
immediate impact on the health, physical & mental efficiency, alertness,
moral & overall efficiency of the workers & there contribution to the
highest productivity. Welfare measures may also be provided by the
government trade union and non government agencies in addition to the
employer. The basics purpose of welfare facility is to enrich the life of
employees and keep them happy and contended.

 Concept of labour Welfare:-

Classical labour economics and all micro economics labour is one of four
factors of production, the others being land, capital and enterprises. It is a
measure of the work done by human beings. There are macro-economic
system theories which have created a concept called human capital
(referring to the skills that workers possess, not necessarily their actual
work), although there are also counterpoising macro-economic system
theories that think human capital is a contradictions in terms.
The term welfare suggests the state of well being and implies
wholesomeness of the human being. It is a desirable state of existence
involving the mental, physical, moral and emotional factor of a person
Adequate levels of earnings, safe and human conditions of work and
access to some minimum social security benefits are the major qualitative
dimensions of employment which enhance quality of life of workers and
their productivity. Institutional mechanisms exist for ensuring these to
workers in the organized sector of the economy. These are being
strengthened or expanded to the extent possible. However, workers in the
unorganized sector, who constitute 90 percent of the total workforce, by
and large, do not have access to such benefits. Steps need to be taken on a
larger scale than before to improve the quality of working life of the
unorganized workers, including women workers.
Labour welfare is the key to smooth employer-employee relations. In
order to increase labour welfare, Employers offers extra incentives in the
form of labour welfare schemes, and to make it possible to pursued
workers to accept mechanization. Sometimes the employers.To combat the
influence of outside agencies on their employees use labour welfare as a
tool to minimize the labour. Labour welfare measures are also initiated
with the view to avoiding payment of tax on surplus and to build up at the
same time better relations with employees vide relevant material on the

 Necessarily of employee welfare:-

You must provide “adequate and appropriate” welfare facilities for your
employees. These must be provided unless they are unreasonable in terms
of time, cost and physical difficulty.

Welfare facilities include toilets, washing facility, rest and changing
facilities, personal security arrangements (e.g. lockers) and refreshment.
There must be a sufficient number of toilets and washing facilities so that
people should not have to queue for long periods to use them. These
should de separate for male and female, unless you have a very small
number of staff. The facilities must be clean and provided with toilet
paper, soap, drying facilities, and not and cold running water. They must
be well lit, and ventilated to the external air. Sometimes a shower may be

 Name the agencies of employee welfare:-

 Central Government
 State Government
 Employers
 Trade unions
 Other agencies

o Central Government:-
The central government has made elaborate provisions for the health,
safety and welfare under factories Act 1948, and Mines Act 1952. These
acts provide for canteens, crèches, rest rooms, shelter etc.

o State Government:-
Government in different states and union Territories provide welfare
facilities to workers. State government prescribes rules for the welfare of
the workers and ensures compliance with the provisions under various
labour laws.

o Employers:-
Employers in India in general looked upon welfare work as fruitless and
barren though some of them indeed had done pioneering work.

o Trade unions:-
In India, trade unions have done little for the welfare of workers but few
sound and strong unions have been the pioneering in this respect. E.g. the
Ahmadabad textiles labour association and the Mazdoor subha, Kanpur.

o Other agencies:-
Some philanthropic, Charitable d social service organizations like Seva
sadan socity, Y.M.C.A., etc.

 The Organization Provides Many Welfare Facilities:-

 Internal facility:-

o Canteen
o Rest room
o Crèches
o Liveries items etc.

 External facility:-

o Housing
o Education
o Child welfare
o Leave travel facilities
o Interest free loans
o Workers cooperative stores
o Vocational guidance
o School
o Bus etc.

3) Statutory welfare schemes:-

 Welfare provisions of factories act, 1948:-
 The provisions of the act are complied for protecting workers against
industrial and occupational hazards.
 Occupier, factory manager, safety officer, welfare officer and certifying
medical officer have been designated.
 on-site and off-site emergency plans have been developed
 Mutual aid scheme with neighboring industries to support each other
during emergencies.
 Plant safety committee, representation of workers and officers, has been
formed to review safety related issues and suggest modification, if needed,
on regular basis.
 joint management council, canteen management
 Proper measures for cleanliness inside the factory premises (best
housekeeping award for several years)
 Proper disposal of waste and effluents.
 Proper ventilation and maintenance of working temperature at work place.
 Attention to prevent dust and fumes in working area.
 Proper action for artificial humidification, lighting, proper drinking water,
latrines and urinals are being taken.
 Protective clothing and helmet are provided and other safety and security
measures are being adhered to strictly.
 Hazop study has been conducted and recommendations have been
 Mock drills for on-site emergency plan are conducted on regular basis to
train employees to handle emergency situations.
 Regular check up for leakages in plants and remedial action.
 Annual medical check-up for all the employees is being done.
 Provisions of canteen, change room/rest room, seating facilities,
toilets, etc. are provided.
 Cl – 14, public holidays – 14, earned leave – 33, medical leave – 20 (half
pay), weekly off compensatory off as per factory act.
 Health, safety, welfare and working hour‟s provisions as per the factory
act are being adhered to for maximum benefit of employees.

 Payment of gratuity act, 1972:-
 Compliance of the provisions.
 Minimum 5 years service required.
 Gratuity is payable @ 15 days of wages for every completed year.
 The upper limit is 20 months (Basic + DA).
 In case of death, calculation of gratuity is till the age of retirement.

 Employees provident fund:-
 Contribution equivalent to 12% of the wages by employee and employer
 PF trust has been formed for the management of the fund.
 all employees are the members of the PF trust
 Rate of interest for the last year was 9.50%.
 welfare provisions as per employees pension scheme, 1995
 Employee pension scheme was introduced w.e.f. November 16, 1995.
 All members of PF scheme automatically become its member, and hence,
all employees are covered under the provisions of employee‟s pension

 Employees deposit linked insurance scheme:-
 Taken policy under group life insurance scheme in lieu of employees
deposit linked insurance scheme.
 Provide death coverage equivalent to 15 months salary, subject to
maximum of Rs. 1.0 lakh.
 Compensation payable under the scheme is better than that provided in
employees deposit linked insurance scheme.
 Premium is paid by employer.

 Maternity benefit act:-
 Women employees are provided 12 weeks paid maternity leave.
 Pre and post natal care is provided in our hospital.
 Nursing breaks are provided twice daily.
 Other provisions of act are being complied with.
 Employees state insurance scheme:-
 The medical assistance scheme has been formulated in lieu of employees
state insurance (ESI) scheme is more beneficial.
 Free hospital facility and reimbursement of medical expenses.
 Lump sum amount of maximum RS. 4500/- p.a. for routine medical
 Annual medical checkup for all employ.

 Workmen compensation act:-
 group personal accident insurance has been taken to cover the risk under
the workmen compensation act (24 hours coverage)
 the employees are covered for 45 times of their mean basic pay (in case of
 in case of death, the compensation is double (i.e. 90 times of mean basic)
 Compensation is also provided for temporary partial disablement.
 No contribution by employees.

 Other welfare provisions:-
The provisions of the following statues are being complied.
 The payment of wages act, 1936.
 The payment of bonus act, 1965.
 The equal remuneration act, 1976.
 The contract labour regulation and abolition act, 1970.
 The inter-state migrant workmen act, 1979.
 The shops and establishment act.

 Housing facility:-

Accommodation in township or leased accommodation is provided to
most of the employees.
 At plant site, township with all the basic amenities for all employees has
been provided.
 Schools, shopping centre, post office, bank, clubs, play ground sports
complex, health club, swimming pool, garden and all other basic facilities
are available.

 KRIBHCO provided semi furnished accommodation with proper house-
keeping, security arrangement, repair and maintenance of house in
township, cable connection, and electrical maintenance in the township for
its employees. Park facilities with equipments for playing of children,
sitting arrangement in the garden, lawn maintenance, plantation and
maintenance of trees, maintenance Flower plants for beautification are
also being provided. Post office, Bank and PCO facility are provided in
the township. Township of KRIBHCO, is overall provides facilities for
modern life. The housing facility provided by the KRIBHCO is strictly
according to grade wise and seniority basis. Other terms and condition
regarding allotment and occupation shall be laid down by the management
from time to time and water and electricity changes are at a very nominal
rate only.

 Shopping centers in the township are provided to the cater to the need and
requirement of residents of the township.

In KRIBHCO all of these facilities provided for employees and their
family members.

 House building loan scheme:-

 KRIBHCO encourages its employees to have their own house.
 House building loan up to RS. 8.0 lakhs is given for acquiring /
constructing dwelling unit. the loan is given on simple interest @ 5.5%
 Most of our employees have constructed houses at a very young age.
 Group life insurance coverage – in case of death of employee, outstanding
loan amount is recovered from insurance company and the house is made
free to the nominee of deceased employee.

 Medical facilities:-

KRIBHCO provides free medical facilities to its employees, their spouses
dependent members of his family, be eligible for reimbursement of:
 Fees paid by him to an authorized medical attendant for consultation
whether at is cleaning or at he employee‟s residence.
 Fees paid for injection, dressing or minor surgery.
 Fees paid for X-ray and pathological test etc.
 Expenses of treatment for chronic or any specialized treatment or incase of
hospitalization, at actual.
 Reimbursement of medical expenses for routine treatment Rs. 4500/- per
annum (2250/- for township residents).
In addition to above KRIBHCO is having its own hospital having both
inpatient and outpatient facility. Specialists from reputed hospital visit
KRIBHCO visit KRIBHCO hospital for township residents. In case of
specialized and chronic diseases cases are referred from KRIBHCO
hospital to empanelled doctor/hospital in surat or outside surat.

 Conveyance advance scheme:-

 Conveyance advance is given for purchase of vehicles.
 Type of vehicles depends upon the grade of the employees.
 Simple interest @ 5% p.a. is charged on reducing balance.
 Fixed local conveyance allowance is paid to employees.

 Educational facilities in township:-

 Education facilities up to 12
standard are provided through sunflower
school for Guajarati medium and central school (Kendriya vidhalaya no.2,
CBSE) both having science and commerce disciplines up to 12th standard
for Hindi / English medium.
 Pre-primary and pre-nursery educational facilities are also provided.
 Coaching classes and preparatory classes for entrance examinations are
 Grants are provided to clubs to maintain library and reading room
 Transport facilities for outside school / colleges.

 In surat city or in other nearby areas. Coaching classes and entrance
examination preparatory classes are also run by KRIBHCO provides
grants to officers club and staff club to maintain library and reading room
in the township. Officers club and staff club arrange computer-learning

 Recreational facilities in township:-

 Facilities for indoor and outdoor games like billiards, table tennis,
badminton, football, cricket, volleyball, lawn tennis, swimming etc.
Coaching camps are also conducted.
 State and national level sports and games meet are organized at regular
 Promotion for cultural activities and events.
 Grant for officers club and staff club.
 Celebration of Independence Day, republic day, May day, holy, new year
 Cable TV connection to every house in township.
 Annual athletic meet.

 Employees benevolent fund:-

 Employees benevolent fund scheme has been formulated for providing
monetary assistance to nominees in case of untimely death of an
 A lump sum amount of RS. 65,000- and monthly pension of RS. 1,500-
Per month for next 60 months is given.
 Employee contributes RS. 20- Per month, employer also contributes RS.
20- per month for the fund.

 Post retirement medical benefit scheme:-

 On retirement, ex-employees are entitled to medi-claim up to RS. 2000-
Per annum.
 Additionally, medical expenditure and hospitalization up to RS. 150000-
Per annum is reimbursed. This reimbursement could be cumulated up to
RS. 1.50 lakhs.
 Every employee is contributing RS. 20- per month with matching
contribution from KRIBHCO.

 Leave travel concession / Leave travel encashment:-

 Leave travel concession (LTC/LTE) is provided to employees limited to
18/20% of their annual basic pay, once in a year for travelling in India
along with their family members.

 Other welfare facilities:-

 Employee‟s cooperative society for managing distribution of milk, LPG
cylinders, provisional items, credit facilities etc.
 “ashirvad bhawan” – meeting and recreational place for old aged members
of the township has been created whereby TV, video, audio, library
facilities are provided.
 “jagruti bal bhawan” - provides primary education to children of weaker
sections of the society.
 Workers industrial education scheme is prevalent.
 Transport facilities for employees, township residents and school going

 Ladies club for spouses of employees.
 Excursion trips to employee families, once in a year.
 Family planning expenses, leave and incentive are paid to employees.
 Membership of professional bodies and FAI.
 Special casual leave for blood donation and sports activities.
 Uniform / protective clothing for employees with washing allowance.
 Suggestion scheme – suggestion boxes in different locations and award to
good suggestions.
 Grievance handling cell in vogue.
 Single non-affiliated internal union & association
 A Bank (Bank of Baroda) with ATM counter
 ATM counter of ICICI Bank
 A Post Office
 A Community Hall
 A VIP Guest House (having 24 air-conditioned rooms and 3 suits)
 Another Guest House having 40 AC rooms.
 Two clubs - each having a library, badminton court, table tennis room,
carom room, billiards and snooker tables, etc. plus facilities for conducting
music classes, computer classes, type writing classes, demonstrations and
exhibitions, etc.

 A Hostel-Cum-Mess for trainees – 40 non-A/C rooms.
 A Horticulture Nursery engaged in planting saplings and maintaining the
lawns in the township
 A Sports Complex having a cricket stadium and athletic tracks
 Two lawn tennis courts of international standards having turf flooring

 Canteen Facility:-

KRIBHCO is provided the canteen facility to their employees so as
to provide hygienic and nutritious food to the employees is being
given canteen employees is being given canteen coupons worth of
500/- per month.

 Drinking Water in KRIBHCO:-

In KRIBHCO effective arrangement is made for providing clean
drinking water and it‟s cooling during summer.
All drinking water points and centers are maintained in hygienic

 Water supply and its processing in KRIBHCO:-

An 85 km long pipeline of 42 degree NB from kakrapar
reservoir near tapi up to KRIBHCO, hazira site was laid to
have reliable alternate sources of water supply.


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