Volkswagen Hr Policies l3436
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SUMMER TRAINING REPORT ON HR POLICIES OF VOLKSWAGEN Undertaken at VOLKSWAGEN DEHRADUN
In Partial Fulfillment of Bachelor of Business istration At GRAPHIC ERA UNIVERSITY DEHRADUN
Submitted to: MR. PANKAJ AGGARWAL Submitted By: PANKAJ KUMAI
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Preface We can not achieve anything worthwhile in any field of knowledge solely on the basis of theoretical knowledge from books to order to achieve practical, positive and concrete results, the classroom learning needs to be effectively wedded to the reality of the situation outside the classroom. Project work is conducted as an integral part of a management course. It provides an opportunity to apply the theoretical aspect in practical. It gives an excellent opportunity to a student to apply his ability, capability, interest, knowledge, brief reasoning and mantle by giving a solution to the assigned problem, which reflects his caliber. Today, each and every organization wants efficient and effective work force. They want their employees to be sincere, involved in the work and attached to the organization that is why they want committed people. Therefore, there is need to study what exactly commitment means? How people view it? What are the variables related? So keeping in the mind above mentioned scenario, I decided to do a project on “HR Policies in automobile Industry”. Employees are the backbone of any organization. When they an organization, they bring with them a set of needs, desires and past experience that combines to form job expectation. Job satisfaction expresses the amount of agreement between one’s emerging expectation and requirements that the job provides. So it is very necessary to know about the HR policies of the organization to achieve the job satisfaction level of the employees. Based on the findings I have compiled this report.
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CONTENTS Page no. Chapter1 INTRODUCTION TO AUTOMOBILE INDUSTRY INTRODUSTION TO VOLKSWAGEN GROUP HISTORY OF VOLKSWAGEN
6 9 13
VOLKSWAGEN IN INDIA
27
HR Policies of VOKSWAGEN
31
RESEARCH METHODOLOGY
49
DATA ANALYSIS
56
RECOMMENDATION & CONCLUSION LIMITATIONS BIBLIOGRAPHY
69 70 71
Chapter 2 Chapter 3 Chapter 4
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CHAPTER 1
INTRODUCTION OF AUTOMOBILE INDUSTRY The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century, Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created. Brothers Charles and Frank Duryea introduced the actual horseless carriage in the year 1893. It was the first internal-combustion automobile car of America, and it was followed by Henry Ford’s first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. Chauffeurs usually drove it and emphasis was on comfort and style rather than speed. During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-Automobile wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessor was. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL.
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It was built on compact and stylized lines, and was capable of 230 kmph (144 mph).This was the
Indian
automobile
history,
and
today
modern
cars
are
generally
light,
aerodynamically shaped, and compact. Facts & Figures The automobile industry in India is on an investment overdrive. Be it enger car or twowheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone appears to be in a scramble to hike production capacities. The country is expected to witness over Rs 30,000crore of investment by 2010. Hyundai will also be unmasking the Verna and a brand new diesel car. General Automobile s will be launching a mini and may be a compact car. Most of the companies have made their intentions clear. Maruti Udyog has set up the second car plant with a manufacturing capacity of 2.5lakh units per annum for an investment of Rs 6,500 Crore (Rs 3,200 Crore for diesel engines and Rs 2,718 Crore for the car plant itself). Hyundai and Tata Automobile s have announced plans for investing a similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 Crore to India. Tata Automobile s will be investing Rs 2,000 Crore in its small car project. General Automobile s will be investing Rs 100 Crore, Ford about Rs 350 Crore and Toyota announced modest expansion plans even as Honda Siel has earmarked Rs 3,000Crore over the next decade for India - a sizeable chunk of this should come by 2010 since the company is also looking to enter the lucrative small car segment. .Talking about the commercial vehicle segment, Ashok Leyland and Tata Automobile s have each announced well over Rs 1,000 Crore of investment. Mahindra & Mahindra’s t venture with International Trucks is expected to see an infusion of at least Rs 500 Crore. Industry performance in 2008-09 The Indian automotive market managed to stand up to the vagaries of the economic meltdown to show slightly growth during fiscal 2008-09. Overall vehicle sales at 97.23lakh grew 0.71 per cent from 96.54lakh units in 2007-08. When major automotive markets reported a 30-40 per cent decline, only a handful of countries managed to show growth. A few months ago, India was looking at negative growth but has turned around. It is actually better than expected.
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enger vehicle sales at 15.51lakh ed flat growth while commercial vehicle sales showed a 21 per cent drop. SIAM has a positive outlook for the current financial year. While it foresees a 7-8 per cent growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent growth for enger vehicles The enger vehicle market has weathered the downturn largely due to market leader Maruti Suzuki which holds 48 per cent of the market. The compact car giant clocked 7.22lakh units for 2008-09. Closest rival Hyundai Automobile India sold 2.44lakh cars, a growth of 13 per cent. Most carmakers saw volumes shrink last fiscal. Toyota Kirloskar Automobile ’s numbers fell 15 per cent to 46,892 units while Ford India’s sales were down 17 per cent to 27,976 units. Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while General Automobile s India was down 8 per cent to 61,526 units. Among commercial vehicle makers, all major players saw substantial fall in volumes. Market leader Tata Automobile s with a 60 per cent plus share, showed 22 per cent drop in numbers at 2.34 lakh units while Ashok Leyland showed 37 per cent drop at 47,632. Either’s sales volume fell 37 per cent at 17,341 units and Force Automobile s was down 28 per cent at 7,819 units. “The freight movement is unlikely to improve this fiscal which will impact truck sales.
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INTRODUCTION TO VOLKSWAGEN GROUP
Type:
Public Company
Headquarters:
Industry:
Automotive
Products:
Cars, Trucks
Revenue: Operating income:
€113.8 billion (2008) €6.61 billion (2008)
Profit:
€4.68 billion (2008)
Employees:
369,928(2008) Vehicle brand companies
Subsidiaries:
Audi Bentley automobile s ltd. Bugatti automobile Lamborghini Seat Skoda auto Scania Volkswagen enger car Volkswagen commercials vehicles
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In German, ‘Volks’ pronounced as (folks), means people and ‘Wagen’ means ‘Car’. Hence:
Volkswagen means "people's car" in German, in which it is pronounced [fɔlksvaɡən].
Its current tagline or slogan is Das Auto (in English The Car).
Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love of the Automobile, as translated by VW in other languages.
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History of Volkswagen Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933, shortly after taking over as leader of , he teamed up with Ferdinand Porsche to make changes to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938 "KdF-Wagen", later known as the VW Käfer—or Volkswagen Beetle. When Chrysler brought out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler's mother. After some time, they planned to change some features regarding various aspects. These changes included better fuel efficiency, reliability, ease-of-use, and economically efficient repairs and parts. The intention was that ordinary Europeans would buy the car by means of a savings scheme ("Save five Marks a week, if you want to drive your own car"), which around 336,000 people eventually paid into. The VW car was just one of many KdF programmes which included things such as tours and outings. The prefix "Volks" ("People's") was not just applied to cars, but also to other products in Europe; the "Volksempfänger" radio receiver for instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16 September 1938. VW Type 82E
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Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle we know today. It was one of the first to be evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.
Volkswagen Group owns nine active automotive companies:
•
Audi
:
99.55% ownership; the Audi marque is the sole active brand of the
former Auto Union, bought from Daimler-Benz on 30 December 1964.
•
Automobili Lamborghini:, 100% ownership by Audi AG; company was bought in June 1998.
•
Bentley Automobile s Limited,: 100% ownership by Volkswagen AG; the company (at the time known as Rolls-Royce & Bentley Automobile s Ltd.) was bought on 28 July 1998 from Vickers, but did not include the 'Rolls-Royce' brand name. The
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Rolls-Royce marquee was subsequently restarted by BMW who had licensed the brand from Rolls-Royce plc.
•
Bugatti Automobiles : 100% ownership via the Volkswagen subsidiary of VWAG, Bugatti Automobiles SAS was created after Volkswagen purchased the right to the Bugatti marque.
•
SEAT, :- Initially cooperation agreement with Audi AG, 51% (1986) and 100% ownership by the VW Group since 1990, and was the first foreign subsidiary in the VW Group.
•
Škoda Auto,:- 100% ownership since 1999.
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•
Volkswagen enger Cars,:- 100% ownership.
•
Volkswagen
Commercial
Vehicles
(VWCV)
or
'Volkswagen
Nutzfahrzeuge' (VWN) (German) — 100% ownership; started operations as an independent entity in 1995. VWCV/VWN is in charge of all commercial vehicle developments within the Group and has control over Scania and is a shareholder in MAN AG. •
Scania AB,:-
70.94% of voting rights as at 27 February 2009 .
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Current Volkswagen models
• • • • • • • • • • • • • • • • • • •
EuropeCaddy Life Eos Fox Golf Mk6 Golf Plus Golf Variant Jetta Mk5 Multivan New Beetle New Beetle Convertible at Mk6 at CC Phaeton Polo Mk4F Scirocco Sharan Touran Tiguan Touareg
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Volkswagen in India
Recently Volkswagen paved the way for sustainable market activities in India. With the investment agreement signed at the end of 2006 the brand sets a new course that unites two success stories – Volkswagen and India. Volkswagen AG is to build a new production plant in Pune in the Indian state of Maharashtra. With investment totaling some 410 million euros, a full production plant with a press shop, body shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial park near Pune. The German brand and Europe’s largest automotive manufacturer will be entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian market offering all the features of a genuine Volkswagen. For the first step the Volkswagen brand will bring locally produced vehicles to the Indian market up from the third quarter of 2007. To accompany the growing supply of Volkswagen enger Cars, the Group has established a separate Indian sales company in 2007, initially for Volkswagen as well as for Audi. “Volkswagen Group Sales India Private Limited” ed in Mumbai will distribute locally manufactured and imported vehicles in India. Thus, Volkswagen can bring one of it's upper- sedan as the first locally produced vehicle to the Indian market. In April 2006, Volkswagen produced the 14 millionth of its
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bestseller. The at has become the very image of automotive progress, representing what “Made in ” means. This long-term success is confirmed by numerous accolades from experts, journalists and customers who have put the car through its paces in recent months. This image is characterized by vehicle size, drive technologies, safety features such as airbags, ABS and ESP in addition to quality details including galvanized bodies. Imported vehicles such as the Sports Utility Vehicle Touareg will complement the range
HR POLICIES Policies are the very important aspect for any organization. It is a tool that helps an organization for better functioning. These involve managing the relationship between the top management as well as lower management. The goal of HR Policies is to ensure that the firm is able to continue its operations. And that it has sufficient to satisfy both maturing short-term debt and operational expenses. Management should use a combination of policies and techniques for the management of HR policies. These policies aim at managing the work balance according to requirement. In HR Policies we can include the following. •
Recruitment
•
Selection
•
Induction
•
Training and development
•
Compensation system
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•
Leave policy
•
Welfare policy
Recruitment: Placing the right person at right place at right time is called Recruitment. Recruitment policies at Volkswagen Ltd. a) Recruitment will normally be done against vacancies that occur due to the following reasons: i. Separation- Resignation/ Termination/ Dismissal/ Retirement death ii. Expansion/ Reorganization of Company’s business / operations b) Vacancies in all Departments will be filled after prior written approval of the Managing Director. c) Prior written approval of the Managing Director will also be required even the vacancies are within the provision of the approved Manpower. d) All vacancies to be filled from outside will be notified to the Employment Exchange. e) Vacancies will be filled through Promotion/ up gradation/ relocation out of the existing employees. Or
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Employment Exchange Or Placement Agencies/ campus Interviews Or ments f) The following considerations will weigh in preparing shortlists of candidates in recruitment Candidates within the Organization who could fill the vacancies on merits
should
be considered on priority. Active list of Applicants in the Company will be scrutinized.
Selection: To choose the right candidate from a pool of applications is called Selection. Selection policy adopted by the company The following weightage will be given in the final evaluation:Factors
Weightage
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Qualifications
25%
Relevance of past experience
25%
Interview
50%
a. The selected candidates will be notified promptly. b. Candidates not selected will be sent regret letters. c. Candidates who were very poor will be informed regretting the company’s inability to find an opening appropriate to their capabilities. d. Candidates who were very good but not suitable for the position for which interviewed will be informed that the selection committee found them good but not suitable for the post for which they were considered and that their application is being kept on the active file and “will be in touch should a suitable opening exist in future.” Appointment Letters All candidates found suitable for appointment shall be issued Letters of Intent (Employment Offers). Appointment Letters shall be issued under the signature of Authorities as under:-
CATEGORY
AUTHORIZED SIGNATORIES
Workmen
Factory Manager/ General Manager
Staff
Executive Director/ General Manager
Executives/ Manager
Managing Director/ Executive Director/General Manager
Officers
Executive Directors/ General manager
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Following testimonials and documents must be on the candidate’s file before issuing the Appointment Letter: a. Medical Fitness Certificate from Company’s Doctor. b. Authentic proof indicating the Date of Birth (School Leaving Certificate). c. Copies of Certificates of Educational Qualifications. d. Copies of Certificates of experience from previous employers. e. Copy of relieving Certificate from the immediate past employer. f. Company’s Application Form duly filled in. g. Three ports sized colours photographs. h. Last ESI hip No. wherever applicable. i. Last Provident Fund No. wherever applicable. j. Salary/ Income Tax Certificate from the last employer(s) along with PAN No. k. Antecedent Verification from the Referees/ past Employers indicated by the candidate in his/ her Application Form. Appointment Letters will be prepared on a standard format designed by the HR Department. Documents and forms to be filled by the employee at the time of ing. a. Declaration/Nomination form under the Employee’s P.F AND Miscellaneous Provisions Act, 1952. b. Declaration Form under Employees State Insurance Scheme. c. Nomination form under Payment of Gratuity Act, 1972.
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d. Declaration of dependant family for notification to Insurance Company For coverage under Med- claim. Probation All employees are initially kept on probation for a period of six months, which may be extended for a further period of three months, at the sole discretion of the Management. Total period of probation shall, in no case, extend beyond one year. Confirmation On receiving satisfactory reports on progress during probation period,HR Department will obtain necessary approvals and issue letter of confirmation to the probationer on expiry of probation period. Compensation Policy: Objective:To provide a uniform, stable and reasonable competitive compensation to all the employees of the company. Compensation- For Staff, Officers and Executives:Company policy; Compensation package for above category of employees comprises of Basic Salary and allowances. Procedure
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For Staff and Officers, there is a well – defined guiding scale. a. Computation of salaries/ wages for Workers/ staff & Officers Executives/ Managers is done by the HR Department b. Statutory obligations like taxes, provident Fund. ESI etc. and other deductions as permissible and payment thereof to the respective authorities is organized by s Department. c. Annual revision of Basic salary for the all the employees will be undertaken as per performance Appraisal policy of the company. d. The company has made arrangement to open individual’s salary in ING VYSYA Bank where they have been given ATM Cards & their ATM counter is in Factory premises.
House Rent Allowance:All executives are entitled to House Rent Allowance at the rate of 50% of their basic salary Officers & Staff are paid House Rent Allowance at the rate of their basic salary. Official Duty Conveyance:a. All the Executives/ Officers/ Staff using their own vehicle for official work take claim for reimbursement of conveyance expenses along with authorized official duty slip at the rates given below: i) Scooter/ Automobile cycle
@ 1.80 per kilometre
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ii) Car
@ 4.20 per kilometre
b. Mode of calculation- Rate X No. Of kilometres= claimed amount c. Reimbursement of such Conveyance expenses should preferably be claimed once in a month along with Toll Tax & Parking Fee, if any. Car maintenance:All company’s Cars are maintained and serviced at authorized service stations/ workshops in different cities at Company’s Cost. It is the responsibility of the concerned Executive provided with Company Car to maintain it in good, working and road worthy condition. Telephonic Policy: To communicate with their employees at any time company provides the facility of the telephone. By providing this facility company also giving a good communication atmosphere. Some Executives have been provided with Mobile Phones depending upon their assignment subject to monthly limits as per their respective Grade can claim (Mobile phone) bills within the entitlement as given below in proscribed format:G.M. and above
Rs. 1500/-
Sr. manager
Rs. 1000/-
Manager
Rs. 750/-
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Officer
Rs. 500/-
Other Staff
Rs. 375/- or 325/- as application
Salary Advance :All employees are entitled @ 80% interest free salary advance and it can be recovered in 3-4 equal monthly instalments from their salary/ wage. Social Security Policy :Gratuity The object of providing a gratuity scheme is to provide retirement benefit to employees who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. Gratuity as paid in lumpsum as per the Payment of Gratuity Act, 1971 and rules framed there under.Gratuity is payable to an employee on his separation from the services of the company, after he/ she has rendered continuous service for not less than five years:a. On his superannuation; or b. On his retirement or resignation; or c. On his death or disablement due to accident or disease (five years continuous service condition is not applied) For the purpose of calculation of gratuity, the salary last drawn is taken into consideration.
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Procedure: a. Salary/ Wages X Total days payable under gratuity X 1/26. b. HR Department will calculate the Gratuity amount and inform to s Department to release Gratuity payment. c. Gratuity must be paid within 30 days of the last working day of the separating employee subject to fulfillment of the requirements. Provident Fund:All the employees are covered under the Provident Fund Scheme, framed under the Employees Provident Fund and miscellaneous Provisions Act, 1952, those who are getting salary/ wages (Basic + D.A.) up to Rs. 6500/- p.m.
Rate of Contribution:12% of salary/ wage from employee and 12% employer (8.33% pension & 3.67% EPF ). Attribution @ 0.5% & charges Pf @ 1.10%, EDLI charge 0.01% of the whole bill (Basic + DA). Leave Policy: The Executive/ officers and Staff of the Company will be governed by the following of leave
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types
Earned Leave a. All the Executives/ officers and Staff shall be eligible Earned Leave in accordance with the Factories Act. b. The unveiled EL standing to the credit of an employee as on 31 st December each year may be carried forward and accumulated upon a maximum for 30 day in case of Executives and officers & Staff, beyond which it will encase. Extra Ordinary Leave The Company, at its own discretion, will grant extra-ordinary leave with or without pay for prolonged sickness, studies, or for other justified reasons to the employees subject to the condition that he/ she has exhausted all other leave to which he/she is entitled.
Sick Leave a. Employees, who are in service of the company as on 1 st January of the financial year; shall be credited with a SL of 7 days to be availed during the subsequent twelve months on of sickness. b. SL for 3 days or more should be ed by a Medical / fitness Certificate from a ed Medical Practitioner, who treated/ examined the employee. c. A leave application must be submitted immediately on falling sick with a medical Certificate, as it would not be entertained later without sufficient justification.
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d. SL in excess of the accumulation limit will lapse and will not be the subject matter of any compensation. Casual Leave An employee who is in service of the company as on 1 st January will be eligible to avail of CL for casual purposes for nor more than 7 days in a financial year. CL will not be allowed more than 2 days at a time. Short Leave All the officers and staff are entitled to short leave of maximum two hours a day for personal work and subject to four hours in a month for which no salary is deducted. Maternity Leave Maternity Leave shall be as per Maternity Benefits Act, 1961 as amended from time to time. Leave Roster The HR Department/ in-charge shall also ensure that too many Executives, Officers and Staff are not on leave at the same time in a particular month. Leave Rules- Workers a. Those workmen who have actually attended duty up to 240 working days in a calendar year will be allowed one day’s Earned leave fir every 20 days of work performed by them during the calendar year.
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b. The operating rules regarding granting of privilege Leave, wages for leave period etc. will be governed by the Holiday falling in between Earned Leave days shall not be counted as Leave days. c. Privilege Leave will be encased on retirement/ resignation/ termination of the following basis:Casual Leave:a. All workmen shall be entitled to seven days Casual Leave with wages, during one calendar year from 1st January to 31st December. b. The principal of earns and avails on pro rata basis shall apply. Casual Leave shall not be granted for more than two days at a time.
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Transfer And Separation Transfer:Services of all the employees are transferable. Employees may be transferred from one Department to another Department from one establishment to another establishment. Transfers normally take place on of following reasons: a. Vacancies arising out of separation of existing employee b. Organization Restructuring c. Reorganization of company’s business d. Closure of an establishment Separation From Service:An employee may cease to be in the employment of the company for any of the reasons like Resignation, Termination, Retirement, Death, Dismissal etc. Separation Procedure:After issuing a formal communication to the separating employee, HR Department / Company Secretary Will along with a copy of the said letter give following details to the s Department
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i. Leave encashment amount payable of the separating employee ii. Salary/ Wages amount payable of the separating employee iii.
Any other recovery/ dues against separating employee
iv.
Gratuity Application form from the separating employee
Settlement of s: On separation due to any of reasons mentioned above, employee’s final s will be settled only after he/ she has cleared his/ her dues with the company. Following are some of the critical formalities which must be complied within the period specified below: 1. Full and Final Settlement: (Salary + Encashment) 2. Payment of Gratuity: within 30 days of date of leaving. Holidays:All the employees of the company are entitled to National and Festival Holidays, as per rules applicable in the October each year, Festival holidays are declared as per State/ Regional customers and traditions .While National Holidays are three in number and are observed on 26th January, 15 August and 2nd October each year. Shifts:There are following types of shifts in the company:-
SHIFT
TIMING
CATEGORY
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First Shift
8.00 am to 5.00 p.m.
Finishing
9.00am to 6.00 p.m.
All
General
Training and Development:Training & Development of employees is an essential activity for any organization to ensure its entrepreneurial superiority and excellence in its field. Training & Development focuses on ensuring the timely availability of qualified and motivated employees with requisite skill sets to discharge their existing responsibilities, to take up higher responsibilities and to fill up the Competency gaps by continuously developing their skills and attitudes. The company objectives on Training and Development are: a. To bridge the skill and competency gaps b. To create and maintain excellence oriented work environment c. To develop employees skills so as to successfully meet the challenges of competition d. Retraining of employees to impart new skills required to fight obsolescence and to perform under changing business conditions. Training Input:Training inputs are given as under:-
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a. Training for existing employees based on needs and requirements b. Induction training for new entrants c. Training for re-designated/ transferred/ re-located/ promoted employees, keeping in view there new assignment, if required d. Attitude/ management development Presentations:All the employees, other then workers, who have attended external training programme, have to give two presentations on the training programme attended by the employees.First presentation is held within ten days and second within the fifth day of the month of training. Performance appraisal:Objective:a. To provide a platform in which managers discuss the team member’s performance in their current role. b. Identify training/development needed in order to be effective in the current role. c. Discuss how the team member sees his role over the next one year. 360 Degree appraisal for executives:All the Executives of the company are appraised / assessed through 360 degree appraisal system.360 degree appraisal has been brought to practice very recently. Once 360 degree
55
appraisal is implemented successfully, it will further be introduced down the line of officers and so on. Procedure:(a) Company’s business goals for the year are finalized by the MD and are informed to all department head. (b) Managing director circulates the company’s business goals to all so that all executives may prepare their personal objectives. (c) All executives are required to prepare the objective of their subordinates. (d) All the executives are required to fill up their self appraisal and ratings in the prescribed format provided by the HR department. (e) Self appraisal and self ratings are required to be submitted to the MD’s office. (f) Each executive assessed by seniors, peers and subordinate. (g) All promotions, financial increases and other rewards are on based on 360 degree performance appraisal and achievements of agreed and finalized goals.
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CHAPTER 3 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research can be defined as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is, thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantages and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately. The researcher has to think about what procedure and techniques should be adopted in the study. He should arrive at the final choice by seeing that the methodology chosen for project is indeed the beast one, when compared with others
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Research Process: ---- Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The sequence is as follows-
Define Research m
Review concept and theories
Formulate Hypothesis
Design research (sample size)
Collection of data
Analysis data Feed back Interpret and report 55
Suggestion and recommendation The term ‘Research Methodology’ indicates an exhaustive and searching investigating into some accepted principles and conclusions, so as to bring into light some new and novel facts .The first step towards any research is to identify the problem and look at it objectively. One problem to be studied is decided, the steps to be finalized as follows:-
The Sample is to be surveyed as to get the reliable result.
Methods to be used for collecting required information.
Interpretation of data to get the required result through an analysis.
Provide the necessary recommendations and suggestions.
The methodology is based on the extensive experience in qualitative and quantitative interview methods with both workers and factory managers .The study solicits and examines HR policies and offers insight into the ethical and business perspective of the issue through a survey for its analysis .The study relied on trained interviews using a structured interview to gather a broad range of information regarding the HR policies prevailing in the organization .The study emphasizes on both engineers and senior engineers interviews conducted at JSL Plant employees . Interviews were conducted and the Questionnaires were filled between 20th June 2009 to 5 th July 2009. All the Engineers were interviewed with convenience from the available list from the different departments. Onsite interviews were also conducted at random for further clear
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picture prevailing in the organization. The aggregate result of the interviews presents a Clear picture of the HR policies in the Organization.
Sample size and techniques
Sample design: A sample design is a definite plan for obtaining a sample from a given population. Universe: Universe refers to the entire population taken understudy. Here, the universe consists of Volkswagen company in Automobile Industry. Size of sample: This refers to the number of items to be selected from the universe to constitute a sample. In this study, the sample size is fifty. Sampling Procedure:
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In sampling procedure the decision regarding technique to be used in selecting the items for the sample is taken. Here the technique used is convenient sampling & area sampling.
Data Collection
Data is of two types – Primary data & Secondary data. Primary data The primary data are those, which are collected afresh and for the first time and it is original and correct. Primary data are collected with the help of questionnaire & personal interviews and discussions. Out the various tools, the technique adopted here is one of the most practical and result oriented technique, popularly known as Questionnaire Technique. In a structured questionnaire, questions are definite, concrete and pre-ordained with additional questions limited to those that a necessary to clarify incomplete or inadequate answers for eliciting a more detailed response. In the questionnaire, the questions are presented with exactly the same wording and in same order to all respondents. The reason for standardization is to ensure that all the respondents reply to the same set of questions.
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Secondary Data Secondary data is that data which someone else has already collected and which have already been ed through the statistical process. Here, secondary data is collected from journals, magazines, annual reports and publications.
Data Analysis: After collecting the data it has to be processed and analyzed. The term analysis refers to the computation of certain measure along with searching for patterns of relationship that exist among data groups. This study involves percentage and appropriate analytical tools. Data Interpretation: Interpretation refers to the task of drawing inferences from the collected facts after at analytical study.
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CHAPTER 4 DATA ANALYSIS
Identification of techniques of recruitment & selection and training & development Question : According to you what is the most important factor for selection policy?
Qualification
Past experience
Interview
Response
30/50
13/50
7/50
percentage
60%
26%
14%
55
percentage 80% 60% 40% 20% 0% Interview
Past experience
Qualificatio n
percentage
Interpretation:According to most of the employees qualification is the most important factor in selection process.
Question : Which method is adopted by the company in training policy?
On the job training
Workshops
Seminars
Response
30/50
10/50
10/50
Percentage
60%
20%
20%
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Percentage 80% 60% 40%
Percentage
20% 0% On the job Workshops Seminars training
Interpretation:Training is given during the job session.
Question : Which recruitment policy is adopted by the company?
Options
On-line
ment
Institutions
Response
15/50
20/50
15/50
Percentage
30%
40%
30%
55
Percentage 50% 40% 30% 20%
Percentage
10% 0% 1
2
3
Interpretation:The organization mainly gives preference to ment.
Employer attitude towards the compensation system & welfare policy
Question : Which type of compensation is given to you by the company?
Response
Holiday package
Bonus
Others
7/50
30/50
13/50
55
Percentage
14%
60%
26%
Percentage 80% 60% 40%
Percentage
20% 0% Holiday package
Bonus
Others
Interpretation:Here we can interpret that the company mostly use to give bonus to its employees as a part of the compensation.
Question : What type of changes you want in Welfare policy?
Options
Canteen
Insurance
Education
Response
13/50
21/50
16/50
Percentage
20%
45%
35%
55
Percentage 50% 40% 30% 20%
Percentage
10% 0% Canteen
Insurance Education
Interpretation:Most of the employees want insurance policy.
Reputation of the firm
Question : Which type of social security you want from the company?
Response
Gratuity
Provident fund
ESI scheme
27/50
10/50
13/50
55
Percentage
54%
20%
26%
Percentage 60% 50% 40% 30% 20% 10% 0%
Percentage
Gratuity
Provident fund
ESI scheme
Interpretation:Gratuity is paid to the employees time to time.
Question : Do you think your HR policies helps in building good relationship between top level and lower level management?
Yes
S34/50
68%
No
5/50
10%
Cant say
11/50
22%
55
80% 70% 60% 50% 40% 30% 20% 10% 0%
Series1
Yes
No
Cant say
Interpretation:Yes, HR policies help in building good relationship between top level and lower level management.
Question : What are the major impacts of HR policies?
Options
Productivity
Reduce turnover
Good relationship
Response
20/50
15/50
15/50
Percentage
50%
25%
25%
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Percentage 60% 50% 40% 30% 20% 10% 0% Good relationshi p
Reduce turnover
Productivit y
Percentage
Interpretation:HR policies have major impact on the productivity.
Knowledge of major HR policies
Question : Which appraisal system is adopted by the company?
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MBO
360* Appraisal
Others
Response
13/50
24/50
13/50
Percentage
15%
70%
15%
Percentage 80% 60% 40%
Percentage
20% 0% MBO
360* Appraisal
Others
Interpretation:Here we can conclude that company mostly uses the 360* Appraisal technique for the performance appraisal of the employees. Question : Are you satisfied with the leave policy of the company?
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Yes
no
No comment
Response
23/50
20/50
7/50
Percentage
46%
40%
14%
Percentage 50% 40% 30% 20% 10% 0%
Percentage
yes
no
No comment
Interpretation:Most of the employees are not satisfied with the leave policy, they demand more leave.
Implementation of policies
Question : Are you satisfied with the policies adopted by the company?
Yes
S34/50
68%
55
No
5/50
10%
Cant say
11/50
22%
80% 70% 60% 50% 40% 30% 20% 10% 0%
Series1
Yes
No
Cant say
Interpretation:Here we can conclude that the most of the employees are satisfied with the policies of the company..
Question : Does Top level mgt. include your representative at the time of making HR policies?
Yes
no
No comment
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Response
23/50
20/50
7/50
Percentage
46%
40%
14%
Percentage 50% 40% 30% 20% 10% 0%
Percentage
yes
no
No comment
Interpretation:Most of the employees say that their representatives are included in making HR policies.
Question : How frequently your organization change the policy?
Options
After govt. order
After 6 months
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Annually
Response
13/50
15/50
22/50
Percentage
25%
30%
45%
Percentage 50% 40% 30% 20% 10% 0%
Percentage
After govt. order
After 6 months
Annually
Interpretation:The organisation mainly changes the policy annually.
CONCLUSION & RECOMMENDATION
Conclusion & Recommendations
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After having analyzed the data, it was observed that practically there was recruitment and selection in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of recruitment and selection the following things should be taken care of: 1. The very concept of recruitment and selection should be standardized through the organization. Unless this is done, it is accepted, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. 3. Further, at the time of confirmation also, the recruitment and selection form should not lead to fault of any information. Instead, detailed l of the employee’s work must be done – which must incorporates both the work related as well as the other attributes that are important for org. 4. Time period for conducting the recruitment and selection should be revised, so that the the exercise becomes a continuous phenomenon. 5.
Transparency into the system should be ensured through the discussion about the employee’s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.
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6. Performance appraisal conducted must be fair and very clear to the employees. A well communicated or discussion sort of performance appraisal should be conducted. 7.
Management must provide the opportunities for self-development of employees. They must feel proud working with the organization.
8. Promotions must be handled fairly and all employees must be informed about the openings within the organization. 9. Permute use of work incentives- profit sharing. 10. Creative and innovative-provide employee with opportunities to use their there skills. 11. Train people and help them recognizing suggestion opportunities and
making
suggestion. 12. It should be noted that the recruitment and selection form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common recruitment and selection form for every job position in the organization.
Limitations of the Study
A Few limitations and constraints came in the way of conducting the present study:-
55
•
Due to lack of time with authority, we could not get full information about the HR policies in the company.
•
We can’t visit to many companies in such a short time.
•
Due to the lack of internet facility, we could not get the data of other companies.
•
Employees are not so much cooperative in giving the response of questionnaire.
•
Though no effort was spared to make the study more accurate.
•
Sample size selected may not be the true representative of the company, resulting in biased results.
This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.
BIBLIOGRAPHY
55
1. Research methodology – C.R. kothari.
WEBSITES:http:// www.volkswagen.co.in http:// www.prestigeautomobile s.co.in http:// www.automobile.com http:// www.google.com
Magazines Autocar OverDrive
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In Partial Fulfillment of Bachelor of Business istration At GRAPHIC ERA UNIVERSITY DEHRADUN
Submitted to: MR. PANKAJ AGGARWAL Submitted By: PANKAJ KUMAI
55
Preface We can not achieve anything worthwhile in any field of knowledge solely on the basis of theoretical knowledge from books to order to achieve practical, positive and concrete results, the classroom learning needs to be effectively wedded to the reality of the situation outside the classroom. Project work is conducted as an integral part of a management course. It provides an opportunity to apply the theoretical aspect in practical. It gives an excellent opportunity to a student to apply his ability, capability, interest, knowledge, brief reasoning and mantle by giving a solution to the assigned problem, which reflects his caliber. Today, each and every organization wants efficient and effective work force. They want their employees to be sincere, involved in the work and attached to the organization that is why they want committed people. Therefore, there is need to study what exactly commitment means? How people view it? What are the variables related? So keeping in the mind above mentioned scenario, I decided to do a project on “HR Policies in automobile Industry”. Employees are the backbone of any organization. When they an organization, they bring with them a set of needs, desires and past experience that combines to form job expectation. Job satisfaction expresses the amount of agreement between one’s emerging expectation and requirements that the job provides. So it is very necessary to know about the HR policies of the organization to achieve the job satisfaction level of the employees. Based on the findings I have compiled this report.
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CONTENTS Page no. Chapter1 INTRODUCTION TO AUTOMOBILE INDUSTRY INTRODUSTION TO VOLKSWAGEN GROUP HISTORY OF VOLKSWAGEN
6 9 13
VOLKSWAGEN IN INDIA
27
HR Policies of VOKSWAGEN
31
RESEARCH METHODOLOGY
49
DATA ANALYSIS
56
RECOMMENDATION & CONCLUSION LIMITATIONS BIBLIOGRAPHY
69 70 71
Chapter 2 Chapter 3 Chapter 4
55
CHAPTER 1
INTRODUCTION OF AUTOMOBILE INDUSTRY The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century turned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century, Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created. Brothers Charles and Frank Duryea introduced the actual horseless carriage in the year 1893. It was the first internal-combustion automobile car of America, and it was followed by Henry Ford’s first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. Chauffeurs usually drove it and emphasis was on comfort and style rather than speed. During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-Automobile wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessor was. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL.
55
It was built on compact and stylized lines, and was capable of 230 kmph (144 mph).This was the
Indian
automobile
history,
and
today
modern
cars
are
generally
light,
aerodynamically shaped, and compact. Facts & Figures The automobile industry in India is on an investment overdrive. Be it enger car or twowheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone appears to be in a scramble to hike production capacities. The country is expected to witness over Rs 30,000crore of investment by 2010. Hyundai will also be unmasking the Verna and a brand new diesel car. General Automobile s will be launching a mini and may be a compact car. Most of the companies have made their intentions clear. Maruti Udyog has set up the second car plant with a manufacturing capacity of 2.5lakh units per annum for an investment of Rs 6,500 Crore (Rs 3,200 Crore for diesel engines and Rs 2,718 Crore for the car plant itself). Hyundai and Tata Automobile s have announced plans for investing a similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 Crore to India. Tata Automobile s will be investing Rs 2,000 Crore in its small car project. General Automobile s will be investing Rs 100 Crore, Ford about Rs 350 Crore and Toyota announced modest expansion plans even as Honda Siel has earmarked Rs 3,000Crore over the next decade for India - a sizeable chunk of this should come by 2010 since the company is also looking to enter the lucrative small car segment. .Talking about the commercial vehicle segment, Ashok Leyland and Tata Automobile s have each announced well over Rs 1,000 Crore of investment. Mahindra & Mahindra’s t venture with International Trucks is expected to see an infusion of at least Rs 500 Crore. Industry performance in 2008-09 The Indian automotive market managed to stand up to the vagaries of the economic meltdown to show slightly growth during fiscal 2008-09. Overall vehicle sales at 97.23lakh grew 0.71 per cent from 96.54lakh units in 2007-08. When major automotive markets reported a 30-40 per cent decline, only a handful of countries managed to show growth. A few months ago, India was looking at negative growth but has turned around. It is actually better than expected.
55
enger vehicle sales at 15.51lakh ed flat growth while commercial vehicle sales showed a 21 per cent drop. SIAM has a positive outlook for the current financial year. While it foresees a 7-8 per cent growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent growth for enger vehicles The enger vehicle market has weathered the downturn largely due to market leader Maruti Suzuki which holds 48 per cent of the market. The compact car giant clocked 7.22lakh units for 2008-09. Closest rival Hyundai Automobile India sold 2.44lakh cars, a growth of 13 per cent. Most carmakers saw volumes shrink last fiscal. Toyota Kirloskar Automobile ’s numbers fell 15 per cent to 46,892 units while Ford India’s sales were down 17 per cent to 27,976 units. Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while General Automobile s India was down 8 per cent to 61,526 units. Among commercial vehicle makers, all major players saw substantial fall in volumes. Market leader Tata Automobile s with a 60 per cent plus share, showed 22 per cent drop in numbers at 2.34 lakh units while Ashok Leyland showed 37 per cent drop at 47,632. Either’s sales volume fell 37 per cent at 17,341 units and Force Automobile s was down 28 per cent at 7,819 units. “The freight movement is unlikely to improve this fiscal which will impact truck sales.
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INTRODUCTION TO VOLKSWAGEN GROUP
Type:
Public Company
Headquarters:
Industry:
Automotive
Products:
Cars, Trucks
Revenue: Operating income:
€113.8 billion (2008) €6.61 billion (2008)
Profit:
€4.68 billion (2008)
Employees:
369,928(2008) Vehicle brand companies
Subsidiaries:
Audi Bentley automobile s ltd. Bugatti automobile Lamborghini Seat Skoda auto Scania Volkswagen enger car Volkswagen commercials vehicles
55
In German, ‘Volks’ pronounced as (folks), means people and ‘Wagen’ means ‘Car’. Hence:
Volkswagen means "people's car" in German, in which it is pronounced [fɔlksvaɡən].
Its current tagline or slogan is Das Auto (in English The Car).
Its previous German tagline was Aus Liebe zum Automobil, which translates to: Out of Love for the Car, or, For Love of the Automobile, as translated by VW in other languages.
55
History of Volkswagen Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933, shortly after taking over as leader of , he teamed up with Ferdinand Porsche to make changes to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938 "KdF-Wagen", later known as the VW Käfer—or Volkswagen Beetle. When Chrysler brought out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for Hitler's mother. After some time, they planned to change some features regarding various aspects. These changes included better fuel efficiency, reliability, ease-of-use, and economically efficient repairs and parts. The intention was that ordinary Europeans would buy the car by means of a savings scheme ("Save five Marks a week, if you want to drive your own car"), which around 336,000 people eventually paid into. The VW car was just one of many KdF programmes which included things such as tours and outings. The prefix "Volks" ("People's") was not just applied to cars, but also to other products in Europe; the "Volksempfänger" radio receiver for instance. On 28 May 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens was established by the Deutsche Arbeitsfront. It was later renamed "Volkswagenwerk" on 16 September 1938. VW Type 82E
55
Erwin Komenda, the longstanding Auto Union chief designer, developed the car body of the prototype, which was recognizably the Beetle we know today. It was one of the first to be evolved with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.
Volkswagen Group owns nine active automotive companies:
•
Audi
:
99.55% ownership; the Audi marque is the sole active brand of the
former Auto Union, bought from Daimler-Benz on 30 December 1964.
•
Automobili Lamborghini:, 100% ownership by Audi AG; company was bought in June 1998.
•
Bentley Automobile s Limited,: 100% ownership by Volkswagen AG; the company (at the time known as Rolls-Royce & Bentley Automobile s Ltd.) was bought on 28 July 1998 from Vickers, but did not include the 'Rolls-Royce' brand name. The
55
Rolls-Royce marquee was subsequently restarted by BMW who had licensed the brand from Rolls-Royce plc.
•
Bugatti Automobiles : 100% ownership via the Volkswagen subsidiary of VWAG, Bugatti Automobiles SAS was created after Volkswagen purchased the right to the Bugatti marque.
•
SEAT, :- Initially cooperation agreement with Audi AG, 51% (1986) and 100% ownership by the VW Group since 1990, and was the first foreign subsidiary in the VW Group.
•
Škoda Auto,:- 100% ownership since 1999.
55
•
Volkswagen enger Cars,:- 100% ownership.
•
Volkswagen
Commercial
Vehicles
(VWCV)
or
'Volkswagen
Nutzfahrzeuge' (VWN) (German) — 100% ownership; started operations as an independent entity in 1995. VWCV/VWN is in charge of all commercial vehicle developments within the Group and has control over Scania and is a shareholder in MAN AG. •
Scania AB,:-
70.94% of voting rights as at 27 February 2009 .
55
Current Volkswagen models
• • • • • • • • • • • • • • • • • • •
EuropeCaddy Life Eos Fox Golf Mk6 Golf Plus Golf Variant Jetta Mk5 Multivan New Beetle New Beetle Convertible at Mk6 at CC Phaeton Polo Mk4F Scirocco Sharan Touran Tiguan Touareg
55
Volkswagen in India
Recently Volkswagen paved the way for sustainable market activities in India. With the investment agreement signed at the end of 2006 the brand sets a new course that unites two success stories – Volkswagen and India. Volkswagen AG is to build a new production plant in Pune in the Indian state of Maharashtra. With investment totaling some 410 million euros, a full production plant with a press shop, body shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial park near Pune. The German brand and Europe’s largest automotive manufacturer will be entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian market offering all the features of a genuine Volkswagen. For the first step the Volkswagen brand will bring locally produced vehicles to the Indian market up from the third quarter of 2007. To accompany the growing supply of Volkswagen enger Cars, the Group has established a separate Indian sales company in 2007, initially for Volkswagen as well as for Audi. “Volkswagen Group Sales India Private Limited” ed in Mumbai will distribute locally manufactured and imported vehicles in India. Thus, Volkswagen can bring one of it's upper- sedan as the first locally produced vehicle to the Indian market. In April 2006, Volkswagen produced the 14 millionth of its
55
bestseller. The at has become the very image of automotive progress, representing what “Made in ” means. This long-term success is confirmed by numerous accolades from experts, journalists and customers who have put the car through its paces in recent months. This image is characterized by vehicle size, drive technologies, safety features such as airbags, ABS and ESP in addition to quality details including galvanized bodies. Imported vehicles such as the Sports Utility Vehicle Touareg will complement the range
HR POLICIES Policies are the very important aspect for any organization. It is a tool that helps an organization for better functioning. These involve managing the relationship between the top management as well as lower management. The goal of HR Policies is to ensure that the firm is able to continue its operations. And that it has sufficient to satisfy both maturing short-term debt and operational expenses. Management should use a combination of policies and techniques for the management of HR policies. These policies aim at managing the work balance according to requirement. In HR Policies we can include the following. •
Recruitment
•
Selection
•
Induction
•
Training and development
•
Compensation system
55
•
Leave policy
•
Welfare policy
Recruitment: Placing the right person at right place at right time is called Recruitment. Recruitment policies at Volkswagen Ltd. a) Recruitment will normally be done against vacancies that occur due to the following reasons: i. Separation- Resignation/ Termination/ Dismissal/ Retirement death ii. Expansion/ Reorganization of Company’s business / operations b) Vacancies in all Departments will be filled after prior written approval of the Managing Director. c) Prior written approval of the Managing Director will also be required even the vacancies are within the provision of the approved Manpower. d) All vacancies to be filled from outside will be notified to the Employment Exchange. e) Vacancies will be filled through Promotion/ up gradation/ relocation out of the existing employees. Or
55
Employment Exchange Or Placement Agencies/ campus Interviews Or ments f) The following considerations will weigh in preparing shortlists of candidates in recruitment Candidates within the Organization who could fill the vacancies on merits
should
be considered on priority. Active list of Applicants in the Company will be scrutinized.
Selection: To choose the right candidate from a pool of applications is called Selection. Selection policy adopted by the company The following weightage will be given in the final evaluation:Factors
Weightage
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Qualifications
25%
Relevance of past experience
25%
Interview
50%
a. The selected candidates will be notified promptly. b. Candidates not selected will be sent regret letters. c. Candidates who were very poor will be informed regretting the company’s inability to find an opening appropriate to their capabilities. d. Candidates who were very good but not suitable for the position for which interviewed will be informed that the selection committee found them good but not suitable for the post for which they were considered and that their application is being kept on the active file and “will be in touch should a suitable opening exist in future.” Appointment Letters All candidates found suitable for appointment shall be issued Letters of Intent (Employment Offers). Appointment Letters shall be issued under the signature of Authorities as under:-
CATEGORY
AUTHORIZED SIGNATORIES
Workmen
Factory Manager/ General Manager
Staff
Executive Director/ General Manager
Executives/ Manager
Managing Director/ Executive Director/General Manager
Officers
Executive Directors/ General manager
55
Following testimonials and documents must be on the candidate’s file before issuing the Appointment Letter: a. Medical Fitness Certificate from Company’s Doctor. b. Authentic proof indicating the Date of Birth (School Leaving Certificate). c. Copies of Certificates of Educational Qualifications. d. Copies of Certificates of experience from previous employers. e. Copy of relieving Certificate from the immediate past employer. f. Company’s Application Form duly filled in. g. Three ports sized colours photographs. h. Last ESI hip No. wherever applicable. i. Last Provident Fund No. wherever applicable. j. Salary/ Income Tax Certificate from the last employer(s) along with PAN No. k. Antecedent Verification from the Referees/ past Employers indicated by the candidate in his/ her Application Form. Appointment Letters will be prepared on a standard format designed by the HR Department. Documents and forms to be filled by the employee at the time of ing. a. Declaration/Nomination form under the Employee’s P.F AND Miscellaneous Provisions Act, 1952. b. Declaration Form under Employees State Insurance Scheme. c. Nomination form under Payment of Gratuity Act, 1972.
55
d. Declaration of dependant family for notification to Insurance Company For coverage under Med- claim. Probation All employees are initially kept on probation for a period of six months, which may be extended for a further period of three months, at the sole discretion of the Management. Total period of probation shall, in no case, extend beyond one year. Confirmation On receiving satisfactory reports on progress during probation period,HR Department will obtain necessary approvals and issue letter of confirmation to the probationer on expiry of probation period. Compensation Policy: Objective:To provide a uniform, stable and reasonable competitive compensation to all the employees of the company. Compensation- For Staff, Officers and Executives:Company policy; Compensation package for above category of employees comprises of Basic Salary and allowances. Procedure
55
For Staff and Officers, there is a well – defined guiding scale. a. Computation of salaries/ wages for Workers/ staff & Officers Executives/ Managers is done by the HR Department b. Statutory obligations like taxes, provident Fund. ESI etc. and other deductions as permissible and payment thereof to the respective authorities is organized by s Department. c. Annual revision of Basic salary for the all the employees will be undertaken as per performance Appraisal policy of the company. d. The company has made arrangement to open individual’s salary in ING VYSYA Bank where they have been given ATM Cards & their ATM counter is in Factory premises.
House Rent Allowance:All executives are entitled to House Rent Allowance at the rate of 50% of their basic salary Officers & Staff are paid House Rent Allowance at the rate of their basic salary. Official Duty Conveyance:a. All the Executives/ Officers/ Staff using their own vehicle for official work take claim for reimbursement of conveyance expenses along with authorized official duty slip at the rates given below: i) Scooter/ Automobile cycle
@ 1.80 per kilometre
55
ii) Car
@ 4.20 per kilometre
b. Mode of calculation- Rate X No. Of kilometres= claimed amount c. Reimbursement of such Conveyance expenses should preferably be claimed once in a month along with Toll Tax & Parking Fee, if any. Car maintenance:All company’s Cars are maintained and serviced at authorized service stations/ workshops in different cities at Company’s Cost. It is the responsibility of the concerned Executive provided with Company Car to maintain it in good, working and road worthy condition. Telephonic Policy: To communicate with their employees at any time company provides the facility of the telephone. By providing this facility company also giving a good communication atmosphere. Some Executives have been provided with Mobile Phones depending upon their assignment subject to monthly limits as per their respective Grade can claim (Mobile phone) bills within the entitlement as given below in proscribed format:G.M. and above
Rs. 1500/-
Sr. manager
Rs. 1000/-
Manager
Rs. 750/-
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Officer
Rs. 500/-
Other Staff
Rs. 375/- or 325/- as application
Salary Advance :All employees are entitled @ 80% interest free salary advance and it can be recovered in 3-4 equal monthly instalments from their salary/ wage. Social Security Policy :Gratuity The object of providing a gratuity scheme is to provide retirement benefit to employees who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. Gratuity as paid in lumpsum as per the Payment of Gratuity Act, 1971 and rules framed there under.Gratuity is payable to an employee on his separation from the services of the company, after he/ she has rendered continuous service for not less than five years:a. On his superannuation; or b. On his retirement or resignation; or c. On his death or disablement due to accident or disease (five years continuous service condition is not applied) For the purpose of calculation of gratuity, the salary last drawn is taken into consideration.
55
Procedure: a. Salary/ Wages X Total days payable under gratuity X 1/26. b. HR Department will calculate the Gratuity amount and inform to s Department to release Gratuity payment. c. Gratuity must be paid within 30 days of the last working day of the separating employee subject to fulfillment of the requirements. Provident Fund:All the employees are covered under the Provident Fund Scheme, framed under the Employees Provident Fund and miscellaneous Provisions Act, 1952, those who are getting salary/ wages (Basic + D.A.) up to Rs. 6500/- p.m.
Rate of Contribution:12% of salary/ wage from employee and 12% employer (8.33% pension & 3.67% EPF ). Attribution @ 0.5% & charges Pf @ 1.10%, EDLI charge 0.01% of the whole bill (Basic + DA). Leave Policy: The Executive/ officers and Staff of the Company will be governed by the following of leave
55
types
Earned Leave a. All the Executives/ officers and Staff shall be eligible Earned Leave in accordance with the Factories Act. b. The unveiled EL standing to the credit of an employee as on 31 st December each year may be carried forward and accumulated upon a maximum for 30 day in case of Executives and officers & Staff, beyond which it will encase. Extra Ordinary Leave The Company, at its own discretion, will grant extra-ordinary leave with or without pay for prolonged sickness, studies, or for other justified reasons to the employees subject to the condition that he/ she has exhausted all other leave to which he/she is entitled.
Sick Leave a. Employees, who are in service of the company as on 1 st January of the financial year; shall be credited with a SL of 7 days to be availed during the subsequent twelve months on of sickness. b. SL for 3 days or more should be ed by a Medical / fitness Certificate from a ed Medical Practitioner, who treated/ examined the employee. c. A leave application must be submitted immediately on falling sick with a medical Certificate, as it would not be entertained later without sufficient justification.
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d. SL in excess of the accumulation limit will lapse and will not be the subject matter of any compensation. Casual Leave An employee who is in service of the company as on 1 st January will be eligible to avail of CL for casual purposes for nor more than 7 days in a financial year. CL will not be allowed more than 2 days at a time. Short Leave All the officers and staff are entitled to short leave of maximum two hours a day for personal work and subject to four hours in a month for which no salary is deducted. Maternity Leave Maternity Leave shall be as per Maternity Benefits Act, 1961 as amended from time to time. Leave Roster The HR Department/ in-charge shall also ensure that too many Executives, Officers and Staff are not on leave at the same time in a particular month. Leave Rules- Workers a. Those workmen who have actually attended duty up to 240 working days in a calendar year will be allowed one day’s Earned leave fir every 20 days of work performed by them during the calendar year.
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b. The operating rules regarding granting of privilege Leave, wages for leave period etc. will be governed by the Holiday falling in between Earned Leave days shall not be counted as Leave days. c. Privilege Leave will be encased on retirement/ resignation/ termination of the following basis:Casual Leave:a. All workmen shall be entitled to seven days Casual Leave with wages, during one calendar year from 1st January to 31st December. b. The principal of earns and avails on pro rata basis shall apply. Casual Leave shall not be granted for more than two days at a time.
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Transfer And Separation Transfer:Services of all the employees are transferable. Employees may be transferred from one Department to another Department from one establishment to another establishment. Transfers normally take place on of following reasons: a. Vacancies arising out of separation of existing employee b. Organization Restructuring c. Reorganization of company’s business d. Closure of an establishment Separation From Service:An employee may cease to be in the employment of the company for any of the reasons like Resignation, Termination, Retirement, Death, Dismissal etc. Separation Procedure:After issuing a formal communication to the separating employee, HR Department / Company Secretary Will along with a copy of the said letter give following details to the s Department
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i. Leave encashment amount payable of the separating employee ii. Salary/ Wages amount payable of the separating employee iii.
Any other recovery/ dues against separating employee
iv.
Gratuity Application form from the separating employee
Settlement of s: On separation due to any of reasons mentioned above, employee’s final s will be settled only after he/ she has cleared his/ her dues with the company. Following are some of the critical formalities which must be complied within the period specified below: 1. Full and Final Settlement: (Salary + Encashment) 2. Payment of Gratuity: within 30 days of date of leaving. Holidays:All the employees of the company are entitled to National and Festival Holidays, as per rules applicable in the October each year, Festival holidays are declared as per State/ Regional customers and traditions .While National Holidays are three in number and are observed on 26th January, 15 August and 2nd October each year. Shifts:There are following types of shifts in the company:-
SHIFT
TIMING
CATEGORY
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First Shift
8.00 am to 5.00 p.m.
Finishing
9.00am to 6.00 p.m.
All
General
Training and Development:Training & Development of employees is an essential activity for any organization to ensure its entrepreneurial superiority and excellence in its field. Training & Development focuses on ensuring the timely availability of qualified and motivated employees with requisite skill sets to discharge their existing responsibilities, to take up higher responsibilities and to fill up the Competency gaps by continuously developing their skills and attitudes. The company objectives on Training and Development are: a. To bridge the skill and competency gaps b. To create and maintain excellence oriented work environment c. To develop employees skills so as to successfully meet the challenges of competition d. Retraining of employees to impart new skills required to fight obsolescence and to perform under changing business conditions. Training Input:Training inputs are given as under:-
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a. Training for existing employees based on needs and requirements b. Induction training for new entrants c. Training for re-designated/ transferred/ re-located/ promoted employees, keeping in view there new assignment, if required d. Attitude/ management development Presentations:All the employees, other then workers, who have attended external training programme, have to give two presentations on the training programme attended by the employees.First presentation is held within ten days and second within the fifth day of the month of training. Performance appraisal:Objective:a. To provide a platform in which managers discuss the team member’s performance in their current role. b. Identify training/development needed in order to be effective in the current role. c. Discuss how the team member sees his role over the next one year. 360 Degree appraisal for executives:All the Executives of the company are appraised / assessed through 360 degree appraisal system.360 degree appraisal has been brought to practice very recently. Once 360 degree
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appraisal is implemented successfully, it will further be introduced down the line of officers and so on. Procedure:(a) Company’s business goals for the year are finalized by the MD and are informed to all department head. (b) Managing director circulates the company’s business goals to all so that all executives may prepare their personal objectives. (c) All executives are required to prepare the objective of their subordinates. (d) All the executives are required to fill up their self appraisal and ratings in the prescribed format provided by the HR department. (e) Self appraisal and self ratings are required to be submitted to the MD’s office. (f) Each executive assessed by seniors, peers and subordinate. (g) All promotions, financial increases and other rewards are on based on 360 degree performance appraisal and achievements of agreed and finalized goals.
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CHAPTER 3 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research can be defined as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is, thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantages and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately. The researcher has to think about what procedure and techniques should be adopted in the study. He should arrive at the final choice by seeing that the methodology chosen for project is indeed the beast one, when compared with others
55
Research Process: ---- Before embarking on the details of research methodology and techniques, it seems appropriate to present a brief overview of the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The sequence is as follows-
Define Research m
Review concept and theories
Formulate Hypothesis
Design research (sample size)
Collection of data
Analysis data Feed back Interpret and report 55
Suggestion and recommendation The term ‘Research Methodology’ indicates an exhaustive and searching investigating into some accepted principles and conclusions, so as to bring into light some new and novel facts .The first step towards any research is to identify the problem and look at it objectively. One problem to be studied is decided, the steps to be finalized as follows:-
The Sample is to be surveyed as to get the reliable result.
Methods to be used for collecting required information.
Interpretation of data to get the required result through an analysis.
Provide the necessary recommendations and suggestions.
The methodology is based on the extensive experience in qualitative and quantitative interview methods with both workers and factory managers .The study solicits and examines HR policies and offers insight into the ethical and business perspective of the issue through a survey for its analysis .The study relied on trained interviews using a structured interview to gather a broad range of information regarding the HR policies prevailing in the organization .The study emphasizes on both engineers and senior engineers interviews conducted at JSL Plant employees . Interviews were conducted and the Questionnaires were filled between 20th June 2009 to 5 th July 2009. All the Engineers were interviewed with convenience from the available list from the different departments. Onsite interviews were also conducted at random for further clear
55
picture prevailing in the organization. The aggregate result of the interviews presents a Clear picture of the HR policies in the Organization.
Sample size and techniques
Sample design: A sample design is a definite plan for obtaining a sample from a given population. Universe: Universe refers to the entire population taken understudy. Here, the universe consists of Volkswagen company in Automobile Industry. Size of sample: This refers to the number of items to be selected from the universe to constitute a sample. In this study, the sample size is fifty. Sampling Procedure:
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In sampling procedure the decision regarding technique to be used in selecting the items for the sample is taken. Here the technique used is convenient sampling & area sampling.
Data Collection
Data is of two types – Primary data & Secondary data. Primary data The primary data are those, which are collected afresh and for the first time and it is original and correct. Primary data are collected with the help of questionnaire & personal interviews and discussions. Out the various tools, the technique adopted here is one of the most practical and result oriented technique, popularly known as Questionnaire Technique. In a structured questionnaire, questions are definite, concrete and pre-ordained with additional questions limited to those that a necessary to clarify incomplete or inadequate answers for eliciting a more detailed response. In the questionnaire, the questions are presented with exactly the same wording and in same order to all respondents. The reason for standardization is to ensure that all the respondents reply to the same set of questions.
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Secondary Data Secondary data is that data which someone else has already collected and which have already been ed through the statistical process. Here, secondary data is collected from journals, magazines, annual reports and publications.
Data Analysis: After collecting the data it has to be processed and analyzed. The term analysis refers to the computation of certain measure along with searching for patterns of relationship that exist among data groups. This study involves percentage and appropriate analytical tools. Data Interpretation: Interpretation refers to the task of drawing inferences from the collected facts after at analytical study.
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CHAPTER 4 DATA ANALYSIS
Identification of techniques of recruitment & selection and training & development Question : According to you what is the most important factor for selection policy?
Qualification
Past experience
Interview
Response
30/50
13/50
7/50
percentage
60%
26%
14%
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percentage 80% 60% 40% 20% 0% Interview
Past experience
Qualificatio n
percentage
Interpretation:According to most of the employees qualification is the most important factor in selection process.
Question : Which method is adopted by the company in training policy?
On the job training
Workshops
Seminars
Response
30/50
10/50
10/50
Percentage
60%
20%
20%
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Percentage 80% 60% 40%
Percentage
20% 0% On the job Workshops Seminars training
Interpretation:Training is given during the job session.
Question : Which recruitment policy is adopted by the company?
Options
On-line
ment
Institutions
Response
15/50
20/50
15/50
Percentage
30%
40%
30%
55
Percentage 50% 40% 30% 20%
Percentage
10% 0% 1
2
3
Interpretation:The organization mainly gives preference to ment.
Employer attitude towards the compensation system & welfare policy
Question : Which type of compensation is given to you by the company?
Response
Holiday package
Bonus
Others
7/50
30/50
13/50
55
Percentage
14%
60%
26%
Percentage 80% 60% 40%
Percentage
20% 0% Holiday package
Bonus
Others
Interpretation:Here we can interpret that the company mostly use to give bonus to its employees as a part of the compensation.
Question : What type of changes you want in Welfare policy?
Options
Canteen
Insurance
Education
Response
13/50
21/50
16/50
Percentage
20%
45%
35%
55
Percentage 50% 40% 30% 20%
Percentage
10% 0% Canteen
Insurance Education
Interpretation:Most of the employees want insurance policy.
Reputation of the firm
Question : Which type of social security you want from the company?
Response
Gratuity
Provident fund
ESI scheme
27/50
10/50
13/50
55
Percentage
54%
20%
26%
Percentage 60% 50% 40% 30% 20% 10% 0%
Percentage
Gratuity
Provident fund
ESI scheme
Interpretation:Gratuity is paid to the employees time to time.
Question : Do you think your HR policies helps in building good relationship between top level and lower level management?
Yes
S34/50
68%
No
5/50
10%
Cant say
11/50
22%
55
80% 70% 60% 50% 40% 30% 20% 10% 0%
Series1
Yes
No
Cant say
Interpretation:Yes, HR policies help in building good relationship between top level and lower level management.
Question : What are the major impacts of HR policies?
Options
Productivity
Reduce turnover
Good relationship
Response
20/50
15/50
15/50
Percentage
50%
25%
25%
55
Percentage 60% 50% 40% 30% 20% 10% 0% Good relationshi p
Reduce turnover
Productivit y
Percentage
Interpretation:HR policies have major impact on the productivity.
Knowledge of major HR policies
Question : Which appraisal system is adopted by the company?
55
MBO
360* Appraisal
Others
Response
13/50
24/50
13/50
Percentage
15%
70%
15%
Percentage 80% 60% 40%
Percentage
20% 0% MBO
360* Appraisal
Others
Interpretation:Here we can conclude that company mostly uses the 360* Appraisal technique for the performance appraisal of the employees. Question : Are you satisfied with the leave policy of the company?
55
Yes
no
No comment
Response
23/50
20/50
7/50
Percentage
46%
40%
14%
Percentage 50% 40% 30% 20% 10% 0%
Percentage
yes
no
No comment
Interpretation:Most of the employees are not satisfied with the leave policy, they demand more leave.
Implementation of policies
Question : Are you satisfied with the policies adopted by the company?
Yes
S34/50
68%
55
No
5/50
10%
Cant say
11/50
22%
80% 70% 60% 50% 40% 30% 20% 10% 0%
Series1
Yes
No
Cant say
Interpretation:Here we can conclude that the most of the employees are satisfied with the policies of the company..
Question : Does Top level mgt. include your representative at the time of making HR policies?
Yes
no
No comment
55
Response
23/50
20/50
7/50
Percentage
46%
40%
14%
Percentage 50% 40% 30% 20% 10% 0%
Percentage
yes
no
No comment
Interpretation:Most of the employees say that their representatives are included in making HR policies.
Question : How frequently your organization change the policy?
Options
After govt. order
After 6 months
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Annually
Response
13/50
15/50
22/50
Percentage
25%
30%
45%
Percentage 50% 40% 30% 20% 10% 0%
Percentage
After govt. order
After 6 months
Annually
Interpretation:The organisation mainly changes the policy annually.
CONCLUSION & RECOMMENDATION
Conclusion & Recommendations
55
After having analyzed the data, it was observed that practically there was recruitment and selection in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of recruitment and selection the following things should be taken care of: 1. The very concept of recruitment and selection should be standardized through the organization. Unless this is done, it is accepted, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. 3. Further, at the time of confirmation also, the recruitment and selection form should not lead to fault of any information. Instead, detailed l of the employee’s work must be done – which must incorporates both the work related as well as the other attributes that are important for org. 4. Time period for conducting the recruitment and selection should be revised, so that the the exercise becomes a continuous phenomenon. 5.
Transparency into the system should be ensured through the discussion about the employee’s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.
55
6. Performance appraisal conducted must be fair and very clear to the employees. A well communicated or discussion sort of performance appraisal should be conducted. 7.
Management must provide the opportunities for self-development of employees. They must feel proud working with the organization.
8. Promotions must be handled fairly and all employees must be informed about the openings within the organization. 9. Permute use of work incentives- profit sharing. 10. Creative and innovative-provide employee with opportunities to use their there skills. 11. Train people and help them recognizing suggestion opportunities and
making
suggestion. 12. It should be noted that the recruitment and selection form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common recruitment and selection form for every job position in the organization.
Limitations of the Study
A Few limitations and constraints came in the way of conducting the present study:-
55
•
Due to lack of time with authority, we could not get full information about the HR policies in the company.
•
We can’t visit to many companies in such a short time.
•
Due to the lack of internet facility, we could not get the data of other companies.
•
Employees are not so much cooperative in giving the response of questionnaire.
•
Though no effort was spared to make the study more accurate.
•
Sample size selected may not be the true representative of the company, resulting in biased results.
This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.
BIBLIOGRAPHY
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1. Research methodology – C.R. kothari.
WEBSITES:http:// www.volkswagen.co.in http:// www.prestigeautomobile s.co.in http:// www.automobile.com http:// www.google.com
Magazines Autocar OverDrive
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