Welfare Schemes at Bhel

EMPLOYEE WELFARE SCHEMES AT BHEL
A PROJECT REPORT
ON
EMPLOYEE
WELFARE SCHEMES
AT B.H.E.L. LTD. HARIDWAR
GUIDED BY :- SUBMITTED BY :-
MR. SHILPI
MBA-III SEM
HARIDWAR DOON UNIVERSITY, DEHRADUN
BATCH – (2011-13)
DOON UNIVERSITY, MATHURAWALA,

DEHRADUN
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DECLARATION
I hereby declare that this project work entitled “Recruitment
Process in BHEL” is my work, carried out under the guidance of my
faculty guide MR. ________________________. This report neither full nor
in part has ever been submitted for award of any other degree of
either this university or any other university.
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ACKNOWLEDGEMENT
My first regards are to almighty god it was my trust and belief on him, which
enable me to embark upon this task, move on the righteous path and reside the
realism of facts.
I feel privileged in expressing profound sense of gratitude and in debthness to
____________________________ who has generously provided the chance to
study the Welfare Schemes under the guidance, constant encouragement and
inspiration were instruments in the completion of this research she has always
allowed me to encroach upon her precious time and ensured her generosity with
ideas.
I also take the opportunity to thank all those who helped me in completing my
projects in various ways.
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EXECUTIVE SUMMARY
This project is intended to study the Welfare Policies of BHEL and the
satisfaction level of the employees with these policies.
The scope of the study was confines to a mixed population of executives

and staff from different work centrers of BHEL representing different
business groups keeping the view the time frame a sample of hundred
employees was selected at random and advices and fact were sought
through a structured questionnaire designed to evaluate the welfare
measures for the employees by examining their responses.
The data was tabulated and the analysis was done. The result obtained
have been presented in the form the Pic charts and Bar-Diagrams.
At the end a set of recommendations have been given so as to make the

current welfare measures more effective and in order to remove
dissatisfaction prevalent among the employee and help developing loyalty
in workers towards the organization.
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HISTORY OF BHEL LTD.

BHEL is the largest engineering and manufacturing enterprise in India in the
energy related/infrastructure sector today. BHEL was established more than 40
years ago when its first plant was set up in Bhopal ushering in the indigenous
Heavy Electrical Equipment industry in India, a dream that has been more than
realized with a well-recognized track record of performance. The Company’s
inherent financial strengths can be seen from its net worth, Debt Equity ratio and
cash surplus. The Company has a net worth of Rs.60,270 Million as on 31st
March’ 2005. The Company’s cash surplus stood over Rs.32,000 Million as on 31st
March’ 2005. The Debt Equity ratio of the Company is at 0.09. It has been earning
profits continuously since 1971-72 and achieved a sales turnover of Rs.103,364
Millions with a profit before tax of Rs.15,816 Millions in year 2004-2005. In line
with the excellent performance, an all time high dividend of 80% (including 35%
interim dividend) for the financial year 2004-05 has been paid. With this BHEL has
maintained its track record of paying dividends uninterruptedly for the last 29
years.
BHEL caters to core sector of Indian economy viz. Power Generation and
Transmission, Industry, Transportation, Telecommunication, Renewal energy
defense etc. The wide network of BHEL 's, 14 manufacturing divisions, 4 Power
sector regional centers, 8 service centers ,18 regional office and a large numbers of
project sites spread all over India and abroad enable the company to promptly
serve its customer and provide them with suitable products, system and services
at competitive prices.
BHEL has already attained ISO 9000 and all the major units/divisions of BHEL
have been upgraded to the latest ISO-9001: 2000 version quality standard
certification for quality management. All the major units/divisions of BHEL have
been awarded ISO-14001 certification for environmental management systems and
OHSAS-18001 certification for occupational health and safety management
systems.
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BHEL occupies an all-important niche as evident by its ranking by CII amongst

top eight PSUs based on financial performance. Recently in survey conducted by
business India, BHEL has been rated as seventh Best Employer in India.
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VISION
To be a world class ELECTRICAL Company
Integrated in energy business with dominant Indian Leadership And
global presence.
MISSION
WORLD CLASS
 Decided to excellence by leveraging competitive advantages in R&D

and technology with involved people.
 Imbibe high standards of business ethics and organizational values.
 Abiding commitment to health, safety and environment to enrich quality

of community life.
 Foster a culture of trust, openness and mutual concern to make working

a stimulating & challenging experience for our people.
 Strive for customer delight through quality products and services.
To be an Indian multinational engineering enterprise providing total business

solution through Quality product,System an Service In the fields of energy
,Industry,Transportation,Infrastructure and other potential areas.
Dominant Indian Leadership
 Retain dominant position in Indian electrical sector and enhance In
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Values
Integrity and faireness in all matters
Respect for dignity and potential for individuals.
Ensure speed of response.
Faster learning ,creativity and team work.
Loyalty and pride in the company.
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Systems and services
Power Generation System
Trunky power station.
Combined –cycle power plant.
Modernization and rehabilitation of power stations.
Spares management.
Consultancy services.
Transmission system
Sub station switchyards.
HVDC transmission system.
Shunt and series compensation system.
Power system studies.
Erection commissioning,operation and maintance services.
Transportation system
Traction system.
Urban transportation systems.
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Industrial system
Industrial drive and control system.
Spares management
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Health and safety &enevironmental policy
Occupational healt and safety policy
Compliance with applicable legislation and regulations.
Setting objective and target to eliminate /minimize /control risk due to

occupational and safety hazards.
Appropriate structured traning of employees on occupational health and safety

aspects.
Communication of OH & S policy to employes and interested parties.
Formulation and maintenanceOH & Smanagement programes for continual

improvement..
Environmental policy
To strive to be an environmental friendly company in its activities ,product and
services through:
Compliance with applicable environmental legislation / regulation.
Continual improvement in the Environment management system to protect our

natural environment management system to protect our natural Environment and
control pollution .
Promotion and activity for conservation of resreouces by environment

management .
Enchance of environment activities ,offering the companies capability in this field.
Assist and co_operate with concern government agencies/regulatory bodies

engaged in environmental activities ,offering BHEL”S capabilities in this field.
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RECENT ACHIEVEMENTS OF BHEL
1. BHEL's R&D ops contribute Rs 1,151 cr to turnover in 2005-06 [May

19 2006]NEW DELHI: Bharat Heavy Electricals Ltd on May 18 said the
company has achieved a turnover of Rs 1,151 crore during 2005-06 through
products developed by in-house research and development operations. This
revenue was eight per cent of its total revenue of Rs 14,410 crore in 2005-
06. This was the result of a constant thrust on developing new technologies
and products, improving existing products and systems in terms of
reliability, cost and quality through in-house R&D efforts. The company
invested about Rs 150 crore on Research and Development of products and
systems during the year, which was among the highest in the country. The
company also filed for 84 patents, including three abroad, taking the total
number of patents filed till date to 339. Out of this, BHEL has been granted
26 patents and the rest are in various stages of processing. Thirteen
copyrights have also been filed. R&D and technology development are of
strategic importance to BHEL as it operates in a competitive environment
where technology is a major factor.
2. BHEL to manufacture 800 mw thermal sets [Apr 14 2006]Catching up
with the advancement in global technologies, Bharat Heavy Electricals Ltd
(BHEL), through the efforts of its corporate research and development
division in Hyderabad, is now equipped to manufacture 800 mw super-
critical thermal power sets in the country. Much sought-after by several
players in power generation, including APGenco, for its fuel efficiency, the
super-critical technology has been till now viewed as the sole domain of
developed world. As part of its effort to emerge as one of the global
technology players in power systems and other new technologies, the R&D
division of BHEL has started fresh initiatives by setting up centres of
excellence for surface engineering (CoE-SE) and intelligent machines and
robotics (CIMAR). According to the source, CIMAR would be set up at the
Corporate R&D division in Hyderabad at an initial investment of Rs 4.77
crore. Among the new products, the BHEL Corporate R&D has
successfully completed design, supply and commissioning of automated
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storage and retrieval systems for four of the 13 warehouses at the Central
Ordnance Depot, Kanpur.
3. BHEL inks agreement with IIT Madras for new courses [Apr 25 2006]
Chennai: Bharat Heavy Electricals Ltd and the Indian Institute of
Technology-Madras have signed a memorandum of understanding for
collaborative research in the areas of design of boilers, manufacturing,
metallurgical engineering, mechanical engineering, information technology
and other areas of mutual interest. With the help of BHEL, Tiruchi, IIT-M
will establish a research centre at the BHEL campus for the purpose. IIT-M
will select MS/PhD research scholars to work as research associates/project
associates. BHEL on its part will make available its research facilities and
laboratories for the purpose. The collaboration has also given scope for IIT-
M to start two new courses one on energy engineering and another on
welding engineering. The courses will start from the academic year 2006-
07. BHEL, which designs power plant boilers for handling a variety of
coals, is also interested in getting into coal research.
4. BHEL secures Rs 80 cr export order from EETC [May 10 2006]NEW

DELHI: Bharat Heavy Electricals Ltd (BHEL) has bagged its largest ever
export order for transformers worth Rs 80 crore from Egyptian Electricity
Transmission Co (EETC). BHEL will supply 14 transformers of 125 MVA
to the state-run Egyptian company as a part of the order. These transformers
would be installed in eight sub-stations at different locations in Egypt. The
transformers, to be built at the company's Jhansi plant, would be installed
and commissioned under BHEL supervision.The company had earlier
executed a boiler project at Al Arish in Egypt. With the order for
transformers, BHEL has also established itself in the transmission market in
Egypt. BHEL had earlier reported a six-fold increase in its export orders
booking for the fiscal ended March 31 at Rs 3,348 crore. These orders
contributed to one-fifth of the company's total orders booked last year. With
this BHEL is poised to achieve a quantum growth in its export business
driven by consolidation in existing markets and widening its export base
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through expansion of existing basket of products and services and entering

new markets.
5. BHEL net profit up 62 pc(the tribune,3 june 2006)BHEL has posted a

net profit of Rs 867.95 crore for the quarter ended March 31,2006, as
compared to Rs 534.28 crore for the quarter ended March 31, 2005, an
increase of 62.45 pc. Total income has increased from Rs 4,518.94 crore in
Q4 FY 04-05 to Rs 5728.96 crore for Q4 FY 05-06.It has posted a net profit
of Rs 1679.16 crore for the year ended March 31,2006(FY 05-06) as
compared to Rs 953.40 crore for the uear ended March 31,2005. total
income has increased from Rs 9977.36 crore in FY 04-05 to Rs 13820.02
crore for FY 05-06.The board of directors has recommended a final
dividend of 20 percent of equity of the company, making it to total of 145
percent of the equity share capital of the company for the financial year
2005-06. this includes the interim dividend of 40 percent and special
dividend of 85 percent already paid during the year.
6. Workers’ participation in management yields savings at BHEL,
Hardwar DEHRA DUN, Nov 16: Empowerment of employees through the
"quality the areas of import substitution, revamping of old machine tools
and safety over the past two decades based on the principle of people-
building and mutual development, the "quality circle" was adopted by the
BHEL’s Hardwar Plant in the year 1981 and has, since then, yielded
savings of nearly Rs five crore, according to Mr Ashwini Dhar, Public
Relations Officer of the organisation. The quality circle guides the
combined efforts and knowledge of workmen of a particular section. There
are more than four hundred quality circles actively working to enhance the
excellence on the process, quality and delivery fronts, Mr Dhar said.
Coordinators and facilitators alongwith other members of the workers’
groups identify problems and think of solutions collectively to prevent
defects and maintain overall quality. Mr Dhar said upgrading, renovation
and modernisation of hydro sets installed at various power stations
equipped with BHEL and non-BHEL equipment was being now undertaken
by the Hardwar unit through its research and development efforts. The
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Hardwar unit of BHEL has received an order of Rs eight crore from Power
Development Corporation, Jammu and Kashmir, to carry out renovation
and modernisation of the lower Jhelum Hydro Electric Project. This project
is equipped with turbine and operator equipment supplied by BHEL and the
project was commissioned in 1980. Another order, worth Rs thirty crore,
was received by the BHEL plant for renovation, modernisation and
uprating of the units of Ganguwal and Kotla Hydro Electric Projects under
Bhakra Beas
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BHEL OBJECTIVES
 Self-reliance in technology.
 Promoting indigenous effort in oil and gas related equipment,

material and services.
 Develop scientifically oriented and technically component

human resources through motivation and training.
 Environment protection.
 Generate adequate resource for reinvestment.
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BHEL SPECIALISATION
A Ph.D in chemical engineering, specialization in boilers, from the U.K., he

climbed up the corporate ladder with the BHEL work culture and rigorous .
Areas of Specialization. M. S. (by Research) programme shall be offered ... by

the Institute / stipend paid by BHEL / stipend paid from other sponsored ...
... (ITI) diplomas were inducted for specialization training in fabrication,
... However the Durga Puja at BHEL Kalibari is very popular in Bhopal .
Qualifications should have had a specialization/ /elective in Personnel BHEL

reserves the right to change or delete any of the above mentioned test ...
Welcome to BHEL's Online Application Facility for recruitment of Supervisor ,

Administration qualifications should have had a specialization.
That reflect the state-of-the-art in their chosen area of specialization, BHEL

provides the infrastructure and administrative support while IITM
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Roles of HR
 Alignment of HR vision with corporate vision
 Shift from support group to strategic partner in business operations.
 HR as a change agent.
 Enhance productivity and performance by developing employee

competency and potential.
 Developing professional attitude and approach.
 Developing ‘Global Managers’ for tomorrow to ensure the role of global

players.
BHEL is a people oriented company. The HR mission & vision clearly

encompasses the people aspect of the organization.
HR Vision :
“To attain organizational excellence by developing and inspiring the true

potential of company’s human capital and providing opportunities for growth,
well being and enrichment”.
HR Mission :
“To create a value and knowledge based organization by inculcating a culture of
learning, innovation & team working and aligning business priorities with
aspiration of employees leading to development of an empowered, responsive
and competent human capital”.
HR Objectives at BHEL :
 To develop and sustain core value.
 To develop business leaders of tomorrow.
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 To Provide job contentment through empowerment, accountability and

responsibility.
 To build and upgrade competencies through virtual learning,

opportunities for growth and providing challenges in the job.
 To foster a climate of creativity, innovation and enthusiasm.
 To enhance the quality of life of employees and their family.
 To inculcate high understanding of ‘Service’ to a greater cause.
HR Strategies of BHEL:
 To meet challenging demands of the business environment, focus of the

HR Strategy is on change of the employees ‘mindset’.
 Building quality culture and resources.
 Re-engineering and redeployment for maximizing utilization of HR

potential.
 To build and upgrade competencies through virtual learning,

opportunities for growth and providing challenges in the job.
 Re-strengthening mutual faith, trust and respect.
 Inculcating a spirit of learning & enjoying challenges.
 Developing Human Resource through virtual learning, providing

opportunities for growth, inculcating involvement and exposure to
benchmarking in performance.
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EMPLOYEE WELFARE : AN INTRODUCTION
Employee Welfare :
After employees have been hired, trained and remunerated, they need to be
maintained to serve the organization better. Welfare facilities are design to take
care of well being of the employee – they do not generally result in many
monetary Benefit to the employee. Nor do the employee alone provide thus
facilities. Governmental and non-governmental agencies and trade union too,
contribute towards employee welfare.
Meaning and Definition :
Welfare means faring and doing well. It is the comprehensive term, and refers
to the physical, mental, moral and emotional well being of an individual further
the term welfare is the relative concept, relative in time and space. It therefore
varies from time to time, from region to region and from country to country.
Employee welfare also referred to as better next work for employees, relates to
taking care of the well being of the works by employers trade union and
governmental and non governmental agencies.
“Labour welfare is a term which must necessarily be elastic, bearing a some

what different interpretation in one country from another, according to the
different social customs, the degree of industrialization and educational level
of the workers”.
Labour welfare has two aspects – negative and positive. On the negative side,
labour welfare is concerned with counteracting the baneful effects of the large –
scale industrial system of production especially capitalistic, so far as India is
concerned – on the personal/ family, and social life of the worker. On its
positive side, it deals with the provision of opportunities for the worker and his/
her family for good life as understood in its most comprehensive sense.
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Merits of Employee Welfare
Labour welfare is justified for several reasons. It is describe to recollect the

serve ices of a typical worker in this context. His/her labour helps dig and haul
coal from the depths of the earth – to fetch and refine oil, to build dams and
reservoirs, to lay pipes, cannels, railway lines and roads. His/her labours creates
and transmits power and through various phases of manufacturing, pattern raw
materials into finished goods products of necessity as well as of luxury.
The industrial worker is indeed a solider safeguarding the social and economic
factors of the industrial economy, and his/her actions and interaction within the
framework will have a great impact and influence industrial development.
The social and economic aspects of the life of a worker have a direct influence
on the social and economic development of the nation. There is every need to
take care of a worker – to provide both statutory facilities to him/her.
Another argument in the faviour of employee welfare is that the facilities help
motivate and retain employees. Most welfare facilities are hygiene factors,
which, according to Hertzberg, create dissatisfaction if not provided. Remove
dissatisfaction, place an employee in a favourable mood, provide satisfiers, and
then motivation will take place. Welfare facilities, besides removing
dissatisfaction, help develop loyalty in workers towards the organization.
Welfare may help minimize social evil, such as alcoholism, gambling,

prostitution, drug addiction, and the like. A worker is likely to fall a victim to
any of these if he/ she is dissatisfied or frustrated. Welfare facilities tend to
make the worker happy, cheerful and confident looking.
A further argument in favour of welfare is that a reputation for showing concern

help improve the local image of the company as a good employer and thus
assist in recruitment. Welfare may not directly increase productivity, but it may
add to general feeling of satisfaction with company and cut down labour
turnover.
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Administration of Employee Welfare :
Administration of welfare involves decisions on 1. Welfare policy 2.

Organization of welfare, and 3. Assessment of effectiveness. Figure show the
steps in employee welfare.
Welfare policy
Yes or No
Objectives, Approach,
Range, Timeliness
Organization welfare officer line

manager human resource
manager
Evaluation
trend analysis option
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Administration of Employee Welfare
Welfare Policy
The first step in welfare administration is to have a clearly defined policy

towards it. The policy must cover willingness of the management, objectives
sought to be achieved, Range of facilities to be provided, and the timing of the
facilities. The question of unwillingness has only academic interest because,
every employer is compelled to provide welfare either by a status, or
precedence already established by rivals, or out of genuine interest towards
employee welfare.
Organization for Welfare
In most of the organization, welfare is the responsibility of welfare officers. The

Factories Act, 1948 mandates that every industrial establishment must appoint
welfare officers if the number of employees is 500 or more. Welfare offices are
educated and trained in the field and are, therefore, in a better position to
manage welfare as well. But the problem with these is that they are more
concerned with compliance of statutory provisions then with the genuine well
being of the workers. Legal provisions invariably stipulate that certain
minimum facilities should provide to employees in industrial establishment.
The minimum facilities are inadequate to product the welfare of workers.
Welfare officers, too, often fail to enforce compliance of even the minimum
requirements.
Assessment of Effectiveness :
Effectiveness of welfare must be assessed periodically. Feedback, thus

obtained, must act as the basis for initiating remedial actions where desired
results have not been obtained.
Assessment off the effectiveness of the welfare is rather difficult because well-
being of employees is abstract and is not possible to quantity. However, two
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methods of assessment may be mentioned in this context. They are – 1. Trend

analysis and 2. Opinion survey.
Trend Analysis :
Welfare is sought to be justified because of its impact of efficiency, turnover,

and social evils. HR experts must assess the impact of each of these, before and
after a particular welfare activity is being introduced. If post-implementation
shows a substantial improvement, the welfare is worth continuing. The scheme
deserves to discontinue if there is no improvement or if there is a fall in any of
the areas.
Opinion Survey :
The most effective assessment technique is to conduct a survey and elicit

opinion of employees in the welfare scheme. Employees may be requested to
express their views the usefulness or futility of a particular welfare schemes.
Views thus obtained will help continue or discontinue the activity.
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WELFARE LINKAGE WITH HR SYSTEM
Linkage in HR system
The assumption that workers were primarily motivated by money was

inadequate. Elton Mayo and other human relation researchers found that the
social contacts which the workers had at work places were also important and
that the boredom and repetitiveness of tasks were themselves factors in
reducing motivation. Mayo and other also believed that managers could
motivate employee by acknowledging their social needs and by making them
feel useful and important. As a result employee were given some freedom to
make their own decisions on their jobs. Greater attentions was paid to the
organization informal workgroups. More information was provided to
employee about the managers intensions and about the operations of the
organization. In HR model workers were expected to accept the management’s
authority because supervisors treated them with consideration and were
attentive to their needs.
The argument in favour of employee welfare is that the facilities help to

motivate and retain employees. Most welfare facilities are hygine factors which
according to Herzberg create dissatisfaction if not provided. Remove
dissatisfaction place and employee in a favourable mood, provide satisfies and
then motivation will take place. Welfare facilities besides removing
dissatisfaction help to develop loyalty in workers towards the organization.
Maslow’s Need Hierarchy Theory
The need hierarchy of motivation propounded by Abraham Harold Maslow is

undoubtedly the simplest and most widely discussed theory of motivation. The
essence of the theory may be summarized thus :
 Human beings have wants and desires that can influence their behaviour.
Only unsatisfied need can influence behaviour satisfied need do not act
as amotivator.
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 Since need are many, they are arranged in the order of their importance,
or hierarchy from the basis to the complex.
 The person advances to the next level of hierarchy, or from the basic to
the complex only when the lower level need is at least minimally
satisfied.
 Further up hierarchy the person is able to go, the more individuality,

humaneness and psychological health he or she will display.
It is a job of HR specialist to lift employees from lower level needs to higher

level needs.
Maslow’s need hierarchy divides human need into five levels. Each level
represents a group of need for each level.
The most basis level of needs comprise the primary or psychologic ones. So
long as these needs are unsatisfied they monopolize an employee consciousness
and virtually have an exclusive power to motivate behaviour. However when
they are satisfied they cease to be motivators.
People do not stop wanting. After psychological needs are fulfill they being to
want in succession safety, love, esteem and self-realization. A detailed
description of each level of needs as follows –
Physiological Needs –
In the organization context, physiological needs are represented by employees

concern for salary and basic working conditions. It is the duty of HR managers
to ensure that these needs of the employees are met so that they can be
motivated to strive for gratification of higher order needs.
Safety Needs :
Security needs in the organizational context correlate to such factors as job

security, salary increase, safe working conditions, unionization and lobbing for
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protective legislations. Managerial practices to satisfy the safety needs if

employees include pension schemes, groups insurance, provident fund, gratuity,
safe working conditions, grievance procedure, system of seniority to govern
lay-off and other arbitrary or unpredictable actions which create feeling of
uncertainty, favouritism or discrimination on the part of superiors hardly create
a feeling of security in an employee’s mind.
Belongingness and love needs :
In the organizational context, social needs represent the need for a compatible
workgroup, peer acceptance, professional friendship, and friendly behiviour
with subordinates pays. Unfortunately, many managers views friendly relations
of employees with their peers as threat to the organization, and act accordingly.
Self Esteem Needs
In the workplace, self esteem needs correspond to job title, merit pay,
peer/supervisory recognition, challenging work, responsibility, and publicity in
company publications. Managerial practices to fulfill these needs include
challenging work assignment, performance feedback, performance recognition,
personal encouragement and involving employees in goal setting and decision
making.
Self-Actualization Needs :
Finally, if all the earlier four levels needs are satisfied, the needs for self-
actualization comes to the fore. Maslow characterized self-actualization, as the
desire to become everything that one is capable of becoming. The person who
has achieved this highest level presses towards the full use and exploration of
his or her talents, capacities, and Potentialities. In other words, to self-actualize
is to become the total kind of person that one wants to become, to reach the
peak of one’s potential.
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Hertzberg Theory :
Another very popular theory of motivation is that proposed by psychologist

Frederic Hertzberg. This model that is variously termed the two-factor theory,
the dual factor theory and motivation-hygiene theory, has been widely accepted
by managers concerned with the human behavour at work. There are two
distinct aspects of the motivation-hygiene theory. The first and more basic part
of the model represents a formally stated theory of work behaviour. The second
aspect of Hertzberg work has focused upon the behavioural consequences of
job-enrichment and job-realization programmes.
Hertzberg carried out his survey of some 200 accountants and engineers. The
respondents essentially were asked tow questions -1 : When did you feel good
about your job ? 2: When did you feel exceptionally bad about your job ?
Responses obtained from this critical incident method were interesting. He

fined out that factors, which made respondents feel good, were totally different
from those that made them feel bad. Intrinsic factor such as achievement,
recognition, the work itself, responsibility, advancement and growth seem to be
related with job satisfaction. These factors are variously known as motivators,
satisfiers or job-content factor. Extrinsic factors such as company policy &
administration, supervision, working condition, salary, status, security and
interpersonal relations are also known as dissatisfies, hygiene factors,
maintenance factors or job context factors.
According to Hertzberg, satisfaction is affected by motivators and

dissatisfaction by hygiene factors. To achieve satisfaction, managers should
cope with both satisfiers and dis-satisfiers, improve hygiene factors –
dissatisfaction is removed from the mind or employees. A favourable frame of
mind is now created for motivation. Provide satisfiers, and motivation will take
place. Managers should be realistic and should not expect motivation by
‘hygienic’ work environment.
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This is the crux of the two-factor theory of motivation. Figure below diagrams
the essence of the Herztberg model.
Company Policy
and Administration
Achievement
Recognition work
Security Working
itself Conditions
Responsibility
Growth
Advancement
Status Salary
Hygiene Factors and Motivators
Hygiene Factors
___________________________________________
No Dissatisfaction Motivators Dissatisfaction
___________________________________________
Satisfaction No Satisfaction
Contrasting views of satisfaction and dissatisfaction
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WELFARE SCHEMES IN BHEL

HOUSING FACILITIES
Colony Accommodation :
1. In order to have uniform system in BHEL, the executive committee

approved the methodology as given below for determining the seniority for
allotment of various types of residential/colony accommodations.
‘D’ Type
 The executives shall be placed in order of seniority as per

effective date of promotion to the post of DGM (E-6).
 In case, there is more than on executive having the same effective

date of promotion. They shall be placed in order of seniority with
respect to their date of joining in BHEL .
 In case, the effective date of promotion and date of joining in

BHEL are the same in respect of more than one executive then
the seniority of executives shall be decided as per their date of
joining in that project.
 In case any executive has directly joining the post of DGM or the
highest post, his seniority shall be considered from the date of
joining on that post.
‘C’ Type
 The executive shall be placed in order of seniority as per

effective date of promotion to the post of E-3.
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 In case, there is more than one executive having the same

effective date of promotion, they shall be placed in order of
seniority with respect of their date joining in BHEL .
 In case, the effective date of promotion and date of joining in

BHEL are the same in respect of more than one executive then
the seniority of executives shall be decides as per their date of
joining that project.
 In case any executive has directly joined the post of E-3 or higher
up to E-5, his seniority shall be considered from the date of
joining on that post.
Provided :
a. The executive or his/her dependent family members do not own a

residential accommodation at his/her place of posting.
b. The executive does not reside with his/her parents in a house owned
by them. NOTE : Executive means an officer of the company at the
E-0 level and above.
c. The scheme shall also cover deputation to the company in

accordance with the terms and condition of their deputation.
Rental Value Entitlement :
The maximum rental value entitlement of an executive for leased accommodation

in HRA admissible plus 10% both counted at the maximum of his/her scale of pay.
Reimbursement of Maintenance charges to the occupant of leased accommodation

maintenance and repairs :
Ordinarily, maintenance and repairs including white washing etc of the house shall
be the liability of the owner. However if the owner given his or fails or neglects to
carry out the necessary work, an amount not exceeding one month rent per
lease year may be adjusted from the rent bill towards such work, carried out by
Page 31
the allotted officer. A clause to this effect shall be included in the Agreement
with the landlord.
NOTE : Lease year shall be taken as the 11 months lease period.
Page 32
STRENGTH (S): -
 Low cost producer of quality equipment due to cheap labour and
fully depreciated plants.
 Flexible manufacturing set up.
 Entry barrier due to high replacement cost of its manufacturing
facilities.
 Comprehensive turnkey experience from product design to
commissioning.
WEAKNESSES (W): -
 High working capital requirement due to its exposure to cash

starved SEBs (State electricity boards) and High WIP.
 Inability to provide project financing.
OPPORTUNITIES (O): -
 High-expected growth in power sectors (7000 MW/p.a.needs to be
added).
 High growth forecast in India’s index of industrial production

would increase demand for industrial equipment such as motors and
compressors.
THREATS (T): -
 Technical suppliers are becoming competitors with the opening up

of the Indian economy.
Page 33
 Fall in global power equipment prices can effect profitability.
CHILDREN EDUCATION ASSISTANCE SCHEME
This scheme is applicable to all the employees of the company in respect of

their children.
Objective :
The objective is to provide, as a welfare measure, Education Assistance to the

employees to migrate the hardship caused to them in properly educating their
children on account of the high cost of education.
The Children Education Scheme can be further classified under the following
sub-divisions :
Tuition – Fee
An employee shall be eligible of reimbursement of actual expenditure incurred

on tuition – fee including all compulsory charges paid to the school like
admission fees, examination fee, developmental charges etc.
But charges for food, clothing and books are not included under tuition fee.
Merit-Scholarship :
It is granted to the wards of the employees who secure above 60% marks and it
shall also be admissible in respect of the wards of the employees who are
admitted to the professional courses through competitive exams conducted by
Central/ State, Government / Recognized University. It is payable for the full
duration of the academic year, as certified by the head of the school/ Institute.
Reimbursement of Admission Fees :
When the employee is transferred from one station to another in the interest of
BHEL, are eligible for reimbursement of admission charges as per the rates
mentioned in the HR Manual of BHEL.
Page 34
Special Awards for Wards of the Employees :
1) In order to encourage brilliant and meritorious wards of the employees

and to induce them to maintain and improve the level of their
excellence, special awards are granted to those children of the
employees who secure position amongst first 10 in the merit list of the
Board/ University concerned.
2) The amount of “special award” is mentioned in the HR manual for

various courses like :
o Matriculation / New SSC / ISCE etc.
o Intermediate / HSC/ SSC etc.
o Degree Examination
o Post Graduate Examinations
o Professional courses like medical, engineering, MBA, ICWA etc.
Hostel Subsidy :
The children of employees stay in a hostel or residential school for the purpose
of their academic pursuits are entitled to hostel subsidy subject to the conditions
mentioned in the HR manual.
Transport Subsidy :
For the employees posted in cities where the provision for buis/transport
facility for school going children is not feasible then those employees are
eligible for reimbursement of transport subsidy.
Page 35
It is reimbursement subject to the production of certificate in respect of

bus/transport charges made by the employees. The charges to be reimbursed are
as per the provisions mentioned in the BHEL HR manual.
Transport Facilities for Wards :
Wards of BHEL employees are provided bus/transport facilities for the school
going children at various work centers. In cases wherever the employees avail
the transport facility then they are not reimbursed any transport subsidy.
Reimbursement for Journey Fare :
The children of the employees who are staying away from them for their
studies will be allowed reimbursement of 2 nd class rail fare twice in a calendar
year from the educational institution to place of posting of the employee and
back to the educational institution.
Record of all these concessions will be kept in a register maintained by the

Head of office in respect of the employee whose children avail these
concessions.
Page 36
HOLIDAY HOME
Employees are allowed to avail holiday for rest and recreation, at a place of
their choice in India.
Employees can visit any station in India either alone or with their family
members or family members can visit such place independently but not more
than in two batches/groups in all, are allowed once in a block of two calendar
years.
The Current block of two years is 2003 – 2005.
The dependent family members, for the purpose of this scheme, include only
employee, spouse and dependent children (limited to three in numbers).
Employees are reimbursed a uniform amount equivalent to one daily allowance

(at all inclusive rates applicable to that station) for self and each dependent
family members of family including children over 5 years ( i.e. children below
5 years are not to be taken into account) or the actual charges for hiring
accommodation, whichever is jess, up to a ceiling of 10 days. All eligible
employees are allowed to avail the facility at their option i.e. 10 days in a block
of two years or 5 days every year.
The reimbursement, which is limited to rent for accommodation, is allowed

only on production of proper receipts (showing clearly the amount paid towards
rent for accommodation) from the owner/manager of the accommodation hired
for stay. IN case of stay in hotels, original bills have to be enclosed.
For availing this facility, for self the employee must avail leave.
Page 37
COMPOSITE SOCIAL SECURITY SCHEME
The BHEL and the employees of BHEL through their recognized Unions and
Associations are desirous of the need of taking care of the family in the event of
death of an employee of the BHEL, while still in service and of taking care of
the employee in the event of his leading to permanent total disability and
resulting in the occasion of employment / separation from the service of the
BHEL. This scheme is, therefore, being formulated on a “No Profit No Loss”
and “Mutual” basis to take care of the bereaved family of the employee himself
as the case may be in the aforesaid circumstances, with a provision of returning
of an employee’s contribution under the scheme, along with nominal interest
thereon, in the event of such an employee surviving and not being eligible to
the cash benefits as defined in the scheme, till his superannuation including
VRS, resignation etc. from the services of the BHEL. The scheme is also
intended to reduce the multiplicity of similar schemes operating in the BHEL
and to develop an attitude among employees of BHEL being partners in the
welfare of the employees of the BHEL.
Page 38
COMMUNICATION FACILITIES
The Policy on communication facilities would govern all employees
below the Board Level. All these communication facilities are to be hired from
Service Providers BSNL or MTNL, wherever their services are available.
1. Telephone Facility at Office (Direct/EPABX/ICNET) :
a) EPABX/Direct telephone lines with STD facility to be provide to all

executives of level L-I/L-II and E-7 and above.
b) L-III/E-6 to be provided direct telephones with STD facility only where

facilities can not be extended through EPABX.
c) Any other executives / staff may be provided direct telephone in the

interest of work with the approval of concerned Director only.
d) ISD facility to be provided to all Key executives at L-1 or E-8 & above
and Heads of Institutes.
e) The executives of level E-5 to be provided DID/DOD facilities with

STD through EPABX.
f) All executives to be provided EPABX connection with “0” facility,

STD/95’ facilities may be provided with approval of L-I/ED/ICNET
facility to be provided to L-I/L-II/E-7 & above executives. For L-III/E6
and below, on need basis, with the approval of L-I/ED.
g) Existing provision of no ceiling on call charge to be continued. However

respective L-I/ED/Heads shall be responsible for preventing misuse of
this facility, within their areas.
Page 39
a) Above, wherever feasible.
b) ICNET facility at colony residence to the executives L-III/E6 and below

may be provided on need basis, if technically feasible and with the approval
of concerned L-I/ED level executive.
c) In case of husband and wife residing in same premises only one

connection will be provided.
d) The specified ceilings include all other applicable charges, if any, like
rentals, local/STD/ISD call charges, service charges, late payment fee,
charges for all services opted, tax etc., but exclude installation charges.
e) Above ceiling less rentals, would also be applicable on EPABX phones

with 0/STD facility at residence.
f) The above ceilings would change pro-rata if the service provider

changes the billing period.
g) If both husband and wife are entitled and sanctioned/have approval to

have DOT/EPABX residential telephone and are sharing the same residence
and telephone, they shall be eligible for combined entitlement taken
together.
h) Personal residential telephone may be taken only from BSNL/MTNL,

wherever their services are not available, this facility may be taken from
any service provider operating in that locality (fixed/WLL), with the
approval of concerned L-I/ED executive, subject to the ceiling mentioned
above.
Page 40
RESEARCH
METHODOLOGY
Page 41
RESEARCH METHODOLOGY
The research part of the project involves the following steps :
STEP 1. PROBLEM FORMULATION :
To study the issue and facts and people’s awareness regarding Welfare Schemes
in BHEL.
STEP 2. RESEARCH OBJECTIVES :
 To study the Welfare Schemes in BHEL & promotional activities as a

part of internal recruitment.
 Awareness of the employees regarding recruitment process.
 To find the relevance of internal or external recruitment within

organization.
 Employees are satisfied with the recruitment policy.
STEP 3. TYPE OF RESEARCH (OR RESEARCH DESIGN).
Descriptive type of research has been used. It includes survey and fact finding
enquiries of different kinds. The main purpose of descriptive research is to
describe the state of affairs. The survey methods included observation and
questionnaire.
STEP 4. DATA RESOURCES
There are two sources through which data is collected.
Primary Data : Primary data is collected through observation and

Questionnaire.
Secondary Data : Books, reports were used as a source of secondary

Data.
Page 42
STEP 5. DATA COLLECTION METHOD :
1. By Observation :
This method implies the collection of information by way of

investigator’s own observation without interviewing the respondent.
2. Questionnaire :
It is the most effective method of generating data. A detailed

questionnaire comprising of 16 questions covering several aspects of
Recruitment Process in BHEL was designed. It is illustrated in the
Annexure Part.
Secondary Data :
All the data which is already available. The reference of data, which has
already been collected and analysed by someone else i.e. Books,
Reviews, Manuals, Annual reports.
Step 6. SAMPLING :
A process of obtaining information about an entire population by

examining only a part of it is sampling. In this research random
sampling is used. The implications of random sampling is that it gives
each element in the population equal probability of getting, selected and
all choices are independent of one another.
Page 43
FINDINGS
&
ANALYSIS
Page 44
ANALYSIS
Q1. Housing facility provided by BHEL to its employees is satisfactory.
Strongly Agreed Agreed Disagreed
Ans.
Option No. of employees % age

Strongly Agreed 7 35
Agreed 10 50
Disagreed 3 15
Page 45
Q2. Is an adequate sport facilities are provided by BHEL to promote sports ?
Yes No
Ans.

Yes 13 65
No 7 35
Page 46
Q3. Is the amount of loan provided by BHEL for car and houses are
sufficient.
Yes No
Ans.

Yes 16 80
No 4 20
Page 47
Q4. LFA for home/ OTHT facilities provided by the BHEL is sufficient.
Ans.

Agreed 15 75
Disagreed 3 15
Page 48
Q5. Are you satisfied with the educational facilities for the children of the
employees ?
Yes No
Ans.

Yes 10 50
No 10 50
Page 49
Q6. Opportunities for pursuing higher education/ Unnaiti Prayas provided to

BHEL employees are excellent.
Ans.

Agreed 14 70
Disagreed 1 5
Page 50
Q7. Proper canteens and drinking water facility are available at every work
centers of BHEL.
Ans.

Strongly Agreed 1 5
Agreed 4 20
Disagreed 15 75
Page 51
Q8. Is Transport subsidy provided to the employees children should an

actual expenditure ?
Yes No
Ans.

Yes 11 55
No 9 45
Page 52
Q9. Is adequate Medical facilities are provided to retired employees of

BHEL ?
Yes No
Ans.

Yes 15 72
No 5 25
Page 53
Q10. In the case of accident on job proper care is taken while compensating.
Ans.

Agreed 16 80
Disagreed 2 10
Page 54
Q11. In the medical facility provided by BHEL generating a sense of security

among the employees ?
Ans.

Agreed 14 70
Disagreed 0 0
Page 55
Q12. Is the rate of Interest on the house-building allowance on various

amounts is satisfactory.
Yes No
Ans.

Yes 15 75
No 5 25
Page 56
Q13. Composite social security of BHEL generate a feeling of security among

the employees.
Ans.

Agreed 16 80
Disagreed 0 0
Page 57
Q14. Welfare policies of BHEL motivate their employees to great extent.
Yes No
Ans.

Yes 13 65
No 7 35
Page 58
Q15. The holiday home scheme provided by BHEL to its employees is

excellent.
Ans.

Strongly Agreed 1 5
Agreed 18 90
Disagreed 1 5
Page 59
Q16. Agrani Saman scheme for the retired employees are excellent.
Ans.

Agreed 16 80
Disagreed 1 5
Page 60
Q17. A PRBS scheme is beneficial for the retired employees.
Ans.

Strongly Agreed 0 0
Agreed 12 60
Disagreed 8 40
Page 61
LIMITATION OF STUDY
 Time has acted as the major constraint in the study. Within the
limited time spam of 4-6 weeks, it is extremely difficult to adhere to
pre-set time schedule.
 Deposite the added questions regarding the name, designation and

employee number etc. majority of respondent was reluctant to fill them
up.
 Moreover, there were many respondents who have filled the

questionnaire, however, due to researcher’s inability to frequently visit
them to collect the response sheet after the schedule fixed, it might act
as a limitation.
 Some unavoidable errors occurred during the process of

transforming the raw data from questionnaire into the research findings.
 Sample was only 35, which can’t be true representative for a more
than a company having 18,000 executives. Moreover responses were
collected from the executives working in office and responses can’t be
collected from field work executives.
Page 62
CONCLUSION
 Through detailed discussions on various welfare schemes and

opinion survey it was found that employees satisfaction level in
regard to welfare scheme is quiet high ________ strongly Agreed
________, Agreed, _______ Disagreed.
 Through expenditure on medical welfare schemes is quiet high,

but employees were not satisfied with the treatment behavior given
to them by BHEL hospital staff.
 The canteen facilities drinking water facility etc. is not

satisfying.
Page 63
RECOMMENDATION
Canteen facilities should be improved, as it is very much important for

day to day working.
Some non-taxable welfare scheme fixed deposits government bond in the

name of employees may be done by the company.
The procedure for various claims should be simplified.
Page 64
BIBLIOGRAPHY
 K. Ashwathapa
 Human resource and personnel management.
 Various BHEL reports
 Magazines & Brouchers issued by BHEL.
 BHEL website
o www.bhel.com
Page 65
QUESTIONNAIRE
1. Housing facility provided by BHEL to its employees is satisfactory.
2. Is an adequate sport facilities are provided by BHEL to promote sports ?
Yes No
3. Is the amount of loan provided by BHEL for car and houses are
sufficient.
Yes No
4. LFA for home/ OTHT facilities provided by the BHEL is sufficient.
5. Are your satisfied with the educational facilities for the children of the
employees ?
Yes No
6. Opportunities for pursuing higher education/Unnaiti Prayas provided to

BHEL employees are excellent.
7. Proper Canteens and drinking water facility are available at every work
center of BHEL.
8. Is Transport subsidy provided to the employees children should an

actual expenditure ?
Yes No
9. Is adequate Medical facilities are provided to retired employees of

BHEL.
Yes No
Page 66
10. In the case of accident on job proper care is taken while compensating.
11. Is the medical facility provided by BHEL generating a sense of security

among the employees ?
12. Is the rate of Interest on the house-building allowance on various

amounts is satisfactory.
Yes No
13. Composite social security of BHEL generate a felling of security among

the employees.
14. Welfare policies of BHEL motivate their employees to great extent.
Yes No
15. The holiday home scheme provided by BHEL to its employees is

excellent.
16. Argani Saman scheme for the retired employee are excellent.
17. A PRBS scheme is beneficries for the retired employees.
Page 67

Welfare Schemes at Bhel

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Welfare Schemes at Bhel

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EMPLOYEE WELFARE SCHEMES AT BHEL

DOON UNIVERSITY, MATHURAWALA,

I hereby declare that this project work entitled “Recruitment

Process in BHEL” is my work, carried out under the guidance of my

faculty guide MR. ________________________. This report neither full nor

either this university or any other university.

I feel privileged in expressing profound sense of gratitude and in debthness to

____________________________ who has generously provided the chance to

projects in various ways.

The scope of the study was confines to a mixed population of executives

At the end a set of recommendations have been given so as to make the

HISTORY OF BHEL LTD.

BHEL occupies an all-important niche as evident by its ranking by CII amongst

 Decided to excellence by leveraging competitive advantages in R&D

 Imbibe high standards of business ethics and organizational values.

 Abiding commitment to health, safety and environment to enrich quality

 Foster a culture of trust, openness and mutual concern to make working

 Strive for customer delight through quality products and services.

To be an Indian multinational engineering enterprise providing total business

Dominant Indian Leadership

 Retain dominant position in Indian electrical sector and enhance In

Integrity and faireness in all matters

Respect for dignity and potential for individuals.

Ensure speed of response.

Faster learning ,creativity and team work.

Loyalty and pride in the company.

Systems and services

Power Generation System

Trunky power station.

Combined –cycle power plant.

Modernization and rehabilitation of power stations.

Sub station switchyards.

HVDC transmission system.

Shunt and series compensation system.

Power system studies.

Erection commissioning,operation and maintance services.

Urban transportation systems.

Erection commissioning,operation and maintance services.

Industrial drive and control system.

Erection commissioning,operation and maintance services.

Health and safety &enevironmental policy

Occupational healt and safety policy

Compliance with applicable legislation and regulations.

Setting objective and target to eliminate /minimize /control risk due to

Appropriate structured traning of employees on occupational health and safety

Communication of OH & S policy to employes and interested parties.

Formulation and maintenanceOH & Smanagement programes for continual

Compliance with applicable environmental legislation / regulation.

Continual improvement in the Environment management system to protect our

Promotion and activity for conservation of resreouces by environment

Enchance of environment activities ,offering the companies capability in this field.

Assist and co_operate with concern government agencies/regulatory bodies

RECENT ACHIEVEMENTS OF BHEL

1. BHEL's R&D ops contribute Rs 1,151 cr to turnover in 2005-06 [May

4. BHEL secures Rs 80 cr export order from EETC [May 10 2006]NEW

through expansion of existing basket of products and services and entering

5. BHEL net profit up 62 pc(the tribune,3 june 2006)BHEL has posted a

 Promoting indigenous effort in oil and gas related equipment,

 Develop scientifically oriented and technically component

 Generate adequate resource for reinvestment.

A Ph.D in chemical engineering, specialization in boilers, from the U.K., he

Areas of Specialization. M. S. (by Research) programme shall be offered ... by

... (ITI) diplomas were inducted for specialization training in fabrication,

Qualifications should have had a specialization/ /elective in Personnel BHEL