Social Security Schemes in BHEL

A Project Report on :
" Study on Social Security &

Welfare Schemes in BHEL "
2011-2012
Submitted for the partial fulfillment of Master of Business Administration (MBA) of Maulana Azad National Institute of Technology, Bhopal
Submitted By
Ankit Michael Samuel 4th Sem MBA, MANIT Scholar Number: 102103107
Table of Contents
Declaration Certificate Acknowledgements Preface
Profile of the Organization 1.1 Company History ............................................. 13 14
i ii iii iv
1.2 Manufacturing Units of BHEL........................... ......
1.3 Introduction to BHEL Bhopal.............................. .......15 1.4 BHEL, a candidate for Maharatna Company........ .... 17 BHEL Human Resource Departments 2.1 Introduction....................................................................19 2.2 Descriptions of HR Departments..................................19 2.3 Functions of HR Departments........................................28 2.4 Levels of Employees .......................................................30 2.5 Organizational Hierarchy................................................. 32 2.6 Human Resource Practices in BHEL..............................33
I.
Study on Social Security & Welfare Schemes in BHEL.......................................................................39
2 NIT Bhopal- Management Studies Department
Chapter 1 1.1 1.2 Introduction.................................................................44 Welfare Briefing.....................................................45 1.2.1 Welfare Schemes in BHEL 1.2.1.1 Statutory welfare scheme 1.2.1.2 Non- Statutory Welfare Scheme 1.3 1.4 1.5 1.6 Statutory labor welfare facilities................................51 Non statutory labor welfare facilities............................53 Objectives of the Study.................................................54 Social Security Schemes in BHEL...............................55
Chapter 2 2.1 Social Security Schemes in BHEL...............................56 2.1.1 Group Saving Linked Insurance Scheme (GSLIS) 2.1.1.1.1 Amount Insured 2.1.1.1.2 Premium Per Month. (In Rs.) 2.1.2 Death Relief Fund (DRFS) 2.1.3 Employee Deposit Linked insurance (EDLI) 2.1.3.1 Amount Insured 2.1.4 Group Insurance Scheme (GIS) 2.1.4.1 Amount Insured 2.1.5 Group Personnel Accident Policy(GPAP) 2.1.5.1 ICICI LOMBARD 2.1.5.1.1 Compensation 2.1.5.1.2 The coverage for employees 2.1.5.1.3 Process 3 NIT Bhopal- Management Studies Department
2.1.6 Gratuity 2.1.6.1 Gratuity Calculation: 2.1.7 The Employees Family Pension Scheme 2.1.7.1 Calculations 2.1.7.2 Benefits 2.1.8 Provident Fund 2.1.8.1 Provident Fund Calculations 2.1.9 Earned Leave 2.1.10 Retired Employees' Contributory Health Scheme 2.1.11 Act: The workmens Compensation Act, 1923 2.1.11.1 Main Provisions 2.1.11.2 Compensation 2.1.11.3 The process of providing The Workmens Compensation in BHEL
2.1.11.4 The Claim process 2.1.11.4.1 Preparation of Accident Report and Compensation Amount 2.1.11.4.2 Procedure 2.1.10 Retired Employees' Contributory Health Scheme 2.1.10.1 Sample Forms (to be filled by employees)
Chapter 3 3.1 Live Case Handling in BHEL.............................................88 3.1.1 Accident case 3.1.1.1 Rules of half monthly compensation (HMC) Calculation. 3.1.1.2 Rules for Earned Leave Calculation 3.1.1.3 Rules for Lumsum Payment 3.1.2 Death case 3.2 Finding of the Study............................................................93 3.3 Suggestions...........................................................................95 3.4 Conclusion...........................................................................96 II Bibliography...........................................................................98
Declaration
I Ankit Michael Samuel student of 4th Sem from Department of Management Studies of Maulana Azad National Institute of Technology, Bhopal. Here by declare that I did my major project on " Study on Social Security & Welfare Schemes in BHEL" under the guidance of Amit Banerjee.
Yours Sincerely
Ankit Michael Samuel 4th Sem MANIT (DOMS), Bhopal
Certificate
This is to certify that Mr. Ankit Michael Samuel student
of M.B.A. of MANIT, Bhopal has successfully completed his major project as a part of professional studies on project "Social Security Schemes in BHEL". This project work has been carried out under the supervision and is of sufficiently high standard to warrant is presentation for the examination leading to degree of M.B.A. of MANIT university of Bhopal. I wish them a successful professional career.
Date:
Shri Amit Banerjee Samuel (Associate Professor Management Studies Department, MANIT,Bhopal)
Ankit Michael
(MANIT, Bhopal)
Preface
Personnel Management occupies the prime position of all disciplines in Management which deals with many resources. These resources were expanded to include, among others, the following: Men, materials, machinery, money, etc
Human beings play a dual role- a resource as well as a motive force for all other resources. They are also responsible for
manipulating all other resources by way of developing, utilizing, commanding and controlling them like materials, machines, money, information, land, infrastructure, etc. Human resources management (HRM) plays a decisive role in to manpower development: be it labors, students, educated, unemployed, supervisor or manager. Proper H.R.M. can develop right type of shop floor ethos and values which improve productivity and personal satisfaction of employees.
BHEL is one of the of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas or the nine jewels. BHEL, Bhopal is the vast bank of knowledge. It is the 8 NIT Bhopal- Management Studies Department
perfect place to learn about the Management of the Manpower Resources. The knowledge gained here is going to be very helpful in making a successful professional career.
I had taken the topic: Project on Social Security Schemes in BHEL. The main purpose of this research is to know Performance Appraisal System in BHEL. I had tried to put my best efforts to complete this task on the basis of skills achieved during studies in the institute and the knowledge provided by the respective employees of HRM Department in the BHEL, Bhopal. I had put my maximum effort to gain the accurate data from the BHEL, Bhopal. If any error or mistakes found in study and in collecting data kindly ignore.
Acknowledgement
The successful completion of our project would have been a dream, devoid of the worthwhile help and ample cooperation of various people, who are expert in their respective fields. I express my gratitude to the Personnel Department of BHEL, Bhopal for giving me an opportunity to carry out this project in their organization.
The inception of the whole process started with, Sh. K.K.Nair (AGM,HRM),his earnest efforts, which motivated us to a great deal. So, I express my deep sense of gratitude toward his innovative ideas.
My project in charge Sh. Prajjal Adak, a man of simplicity and sincerity, whose enthusiasm toward my project provoked me throughout to commit my best efforts and achieve the desired results. Who always showed and directed me towards right path. My commitment to the project is a result of patience, hard work,
and dedication as inspired by him. I put deep benevolence and gratitude to Sh.Prajjal Adak. And, Of course Shri Amit Banerjee, our MANIT Faculty who inspired me of giving my best each time. He is a man of discipline and great source of knowledge.
I would also like to thanks Sh. M.Isadore(DGM), Sh. Nisar Haidar(DGM), Smt. Surekha Banchhor(Manager), Sh.Amol Choubey(Executive),Sh. K.R Divya(Dy.Officer) for being the guiding and encouraging figures all through the duration of this project. Without their cheering and Invaluable insight into this project, the project work would not have been accomplished.
At last, but not the least, it is really a proud privilege for us to express our deepest sense of gratitude and external gratefulness to our esteemed faculty members, family members & friends who provided proper guidance for the project work and woke enthusiasm for the topic.
Date: 11 NIT Bhopal- Management Studies Department
Profile of the Organization
1.1 Company History

Bharat Heavy Electricals Limited (BHEL) (BSE: 500103, NSE: BHEL) is one of the oldest and largest state-owned engineering and manufacturing enterprise in India in the energyrelated and infrastructure sector which includes Power, Railways, Transmission and Distribution, Oil and Gas sectors and many more. It is the 12th largest power equipment manufacturer in the world. BHEL was established more than 50 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India. The company has been earning profits continuously since 197172 and paying dividends since 1976-77. 74% of the total power generated in India is produced by equipment manufactured by BHEL. It is one of India's nine largest Public Sector Undertakings or PSUs, known as the Navratnas or 'the nine jewels.
1.2 Manufacturing Units of BHEL

Main Manufacturing Facilities

Bhopal (Madhya Pradesh) Bharat Heavy Electrical Limited, Ranipur, Haridwar (Uttarakhand) [10] Bharat Heavy Electricals Limited, Ramachandrapuram, Hyderabad (Andhra Pradesh) Jhansi (Uttar Pradesh) High Pressure Boiler Plant and Seamless Steel Tube Plant, Tiruchirapalli(Tamil Nadu) [11] Boiler Auxiliaries Plant, Ranipet (Tamil Nadu) Electronics Division and Electro Porcelain Division, Bangalore (Karnataka) Jagdishpur (Uttar Pradesh) Rudrapur (Uttrakhand) Industrial Valves Plant, Goindwal (Punjab) Bharat Heavy Plates and Vessels Limited (Vizag)
1.3 Introduction to BHEL Bhopal
Heavy Electrical Plant, Bhopal is the mother plant of Bharat Heavy Electricals Limited, the largest engineering and manufacturing enterprise in India in the energy-related and infrastructure sector, today. It is located at about 7 kms. from Bhopal Railway station, about 5 kms. from Habibganj Railway station and about 18 kms. From Raja Bhoj Airport. With technical assistance from Associated Electricals (India) Ltd., a UK based company, it came into existence on 29th of August, 1956. Pt. Jawaharlal Nehru, first Prime minister of India dedicated this plant to the nation on 6th of November, 1960. BHEL, Bhopal with state-of-the-art facilities, manufactures wide range of electrical equipments. Its product range includes Hydro, Steam, Marine & Nuclear Turbines, Heat Exchangers, Hydro & Turbo Generators, Transformers, Switchgears, Control gears, Transportation Equipment, Capacitors, Bushings, Electrical Motors, Rectifiers, Oil Drilling Rig Equipments and Diesel Generating sets. 15 NIT Bhopal- Management Studies Department
BHEL, Bhopal certified to ISO: 9001, ISO 14001 and OHSAS 18001, is moving towards excellence by adopting TQM as per EFQM / CII model of Business Excellence. Heat Exchanger Division is accredited with ASME U Stamp. With the slogan of Kadam kadam milana hai, grahak safal banana hai, it is committed to the customers. BHEL Bhopal has its own Laboratories for material testing and instrument calibration which are accredited with ISO 17025 by NABL. The Hydro Laboratory, Ultra High Voltage laboratory and Centre for Electric Transportation are the only laboratories of it are in this part of the world. BHEL Bhopal's strength is its employees. The company continuously invests in Human Resources and pays utmost attention to their needs. The plant's Township, well known for its greenery is spread over an area of around 20 sq kms. and provides all facilities to the residents like, parks, community halls, library, shopping centers, banks, post offices etc. Besides, free health services are extended to all the employees through 350 bedded (inclusive of 50 floating beds) Kasturba Hospital and chain of dispensaries.
1.4 BHEL, a candidate for Maharatna Company
For getting Maharatna status, a company needs to have a threeyear track record of annual net profit of over Rs 5,000 crore, net worth of more than Rs 15,000 crore and turnover of more than Rs 25,000 crore. It should also be a listed firm. "It (to accord Maharatna status to BHEL) is being examined and will be done shortly. BHEL is likely to fulfill that criteria soon," Patel added. BHEL's turnover was Rs 33,173.34 crore in the fiscal 2009-10. However, the company's annual average net profit was Rs 3,433 crore during the last three years. Its shares were trading at Rs 2192.5, down 0.05 per cent from the last close at the Bombay Stock Exchange. Maharatna scheme was announced by the government in December 2009 to give more operational freedom to the topperforming PSUs. When that several PSUs lack the required number of independent directors on their board, Patel said the positions would be filled up soon. 17 NIT Bhopal- Management Studies Department
"Many PSUs have independent director vacancies. The independent director position has to be fulfilled at the earliest and Department of Public Enterprises will make sure that all the position have eminent people," he added. As per the Clause 49 of the listing agreement between companies and stock exchanges requires companies to have independent directors in half of the board positions. Some large listed state-run companies do not have the required number of independent directors. This has impeded the government's effort to divest part of its stake in public sector firms, forcing it to name retired bureaucrats as independent directors. Out of 47 listed government companies, the boards of 17 companies like Indian Oil, BHEL and SAIL do not have the required number of independent directors," a recent government report had said. There are 246 Central Public Sector Enterprises in the country, as on March 2009.
BHEL Human Resource Departments 2.1 Introduction

Human resource is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials "HR".
2.2 Description of HR Departments

The Human Resource Department of BHEL , Bhopal is broadly divide into two Category :I.HRDC II.HRM I.HRDC (Human Resource Development Centre) :The principal objective of training and development division in BHEL is to make sure the availability of a skilled and willing workforce to an organization. The training system in BHEL is to create a smarter workforce and yield the best results. 19 NIT Bhopal- Management Studies Department
Human Resource Development Centre in BHEL performs the following activities:1. Apprenticeship Training 2. Faculty Work 3. Vocational Training 4. Induction Training 5. Developmental Training for employees. II.HRM (Human Resource Management):HRM covers the various departments, performing the different functions, which are as follows:1.Establishment 2.Industrial Relations & Welfare 3.Human Resource Systems Development 4.Law 5.Administration 6.Others 6.a Policy 20 NIT Bhopal- Management Studies Department
6.b Single Window Cell 6.c Rajbhasha 6.d Contract Labour Cell 1. Establishment All the Establishment Matters comes under this department . It deals with a wide range of activities starting from induction of an employee till retirement. It includes record keeping of all the employees & its verification (as per required). For Example; Sanction of leave , bus pass , higher qualification matters , passport , promotions , transfers , social security forms and their nominations , loans etc. 2. Industrial Relations & Welfare Industrial Relations is a multidisciplinary field that studies the employment relationship. It is a bridge between workers and top management. It focuses on labour relationship which includes resolving the grievances of the workers. Contract Labour Administration and Industrial Dispute Cases also comes under it. BHEL has various labour unions which are actively giving shape to IR.The main Trade Unions are:21 NIT Bhopal- Management Studies Department
1.HMS(Hind Majdoor Sangh) 2.INTUC(Indian National Trade Union Congress) 3.KTU(Karamchari Trade Union) 4.CITU 5.AITUC
During all these years, Indian National Trade Union Congress (INTUC) had the monopoly over four other trade unions in the plant.
3. Human Resource Systems Development It consist of all the functions like:-
a. Staffing (MPP, Recruitment , Placement & Exits) Understanding & Over staffing reduces the competitive efficiency of the business. Planning staff levels requires an assessment of present and future needs of the organization be compared with present resource and future predicted resources which is accomplished by Man Power Planning. 22 NIT Bhopal- Management Studies Department
Recruitments is an essential & indispensable part of HR which deals with hiring process, which may be from outside or inside the company. Internally through transfers, promotions etc. , and externally through campus selection , written examinations and interviews etc. b. Performance Management BHEL being a very big & widely spread organization which has large number of manpower. Thus to appraise its performance need a comprehensive & exhaustive method. Performance appraisal in BHEL is done in 2 ways:Supervisors and Workmen: - ACR (Annual Confidential Report) Executives: - e Map
c. New Business Initiative BHEL have a separate department for new Business technique which performs various functions like designing SAP , ERP , eMap , PCMM etc, exclusively for BHEL. d. Rewards & Recognition 23 NIT Bhopal- Management Studies Department
e. Career Planning f. Succession Planning g. Competency Management h. Compensation Management i. Communication Systems
4. Law This Department performs all the legal activities of the BHEL. It covers:Litigation Regarding Service Matters Arbitration Court Cases Legal Advices Contract Labour Matters 5. Administration For the welfare of the employees the many other facilities were provided by the BHEL which is administered very efficiently. They are as follows:24 NIT Bhopal- Management Studies Department
Township Administration Office Administration Hospital Administration Sports Administration Transport 6. Others There were so many other departments of HR which are working for the benefits of the employees. It facilitates the information to the employees, which indirectly encourage the employees to perform their best. They are as follows:6. a. Policy Policy matters include check on various implementation processes. It deals with endorsing & distribution of Corporate HR circulars etc. Many concepts like e-Map, competency mapping , HR Software packages (SAP , ERP etc) are its concern areas.
6. b. Single Window Cell This department facilitates the convenience of work dealt by an employee who is unable to go to different cell to process his/her need. So, all the work can be done through a single window or cell.
6. c. Rajbhasha Hindi speaking enables proper communication & flow of work within an organization, where majority of people are Hindi speaking. BHEL being a governmental organization needs to do its entire works (as far as possible) in Hindi. 6. d. Contract Labour Cell BHEL employee structure comprises many workers who are not the employees of it. They are working on contract basis. A large chunk of work is done by them thus they are very crucial to the organization. It can be of two types:a) Job Contract- Registered Societies of contract labour supply this kind of labours.
b) Work Contract These are brought on temporary basis on fixed priced order value by the contractor.
2.3 Functions of Some HR Departments

1. Recruitment Department Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies. The stages in recruitment include sourcing candidates by advertising or other methods, screening potential candidates using tests and/or interviews, selecting candidates based on the results of the tests and/or interviews, and on-boarding to ensure the candidate is able to fulfill their new role effectively. 2. Manpower Planning Department Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: 27 NIT Bhopal- Management Studies Department
1. 2. 3. 4.
Analysing the current manpower inventory Making future manpower forecasts Developing employment programmes Design training programmes
3. Promotion Department A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. Promotion may be an employee's reward for good performance i.e. positive appraisal. Before a company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and tests and giving them training or on-the-job experience. A promotion can involve advancement in terms of designation, salary and benefits, and in some organizations the type of job activities may change a great deal. The opposite of a promotion is a demotion. 4. Transfer Department A transfer is a lateral move to a position in the same classified pay range (classified position) or to a position with comparable duties and responsibilities (non-classified positions). 5. Policy Department A policy is typically described as a principle or rule to guide decisions and achieve rational outcome(s). The term 28 NIT Bhopal- Management Studies Department
is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol. Whereas a policy will contain the 'what' and the 'why', procedures or protocols contain the 'what', the 'how', the 'where', and the 'when'. Policies are generally adopted by the Board of or senior governance body within an organization where as procedures or protocols would be developed and adopted by senior executive officers. A Policy can be considered as a "Statement of Intent" or a "Commitment". For that reason at least, we can be held accountable for our "Policy"
2.4 Levels of Employees
Executive Supervisors
Workers
Executive Category:
E1 E1A E2 E3 E4 E5 E6 E6A E7 E8 E9
Engineer/Executive Trainee Engineer/Executive /Officer Sr.Engineer/Executive /Officer

Deputy Manager Manager Sr.Manager DGM Sr.DGM AGM GM Executive Director
Supervisors Category:
S1 S2 S3 S4 S5 S6 S7 Assistant Engineer Grade 2 Assistant Engineer Grade 1 Deputy Engineer Additional Engineer Grade 2 Additional Engineer Grade 1 Sr.Additional Engineer Grade 2 Sr.Additional Engineer Grade 1
Workers Category:
A1/B1 A2/B2 A3/B3 A4/B4 A5/B5 A6/B6 A7/B7 A8/B8 A9/B9 A10/B10 A11/B11 Unskilled Labours/Attendant Semi-Skilled Labours Artisan Grade 4 Artisan Grade 3 Artisan Grade 2 Artisan Grade 1 Technician Sr. Technician Master Technician General Technician Chief Technician
2.5 Organizational Hierarchy
2.6 Human Resource Practices in BHEL

1. Ensuring a Safe, Healthy and Happy Workplace .In BHEL there is a system to capture the needs of employees through Employee Perception Surveys on environmental factors which are followed up by in-depth analysis, focused group discussions and interactions with workforce so as to improve their work environment. A full fledged WEX department functions along with HR department to bring about these changes. They have very recently introduced ESS which online captures such requirements of employees on a Companywide bases. BHEL has embarked upon a massive modernization of its offices to suit the new age style of functioning
2. Creating an atmosphere of openness and knowledge sharingcreative communication To promote transparency BHEL has incorporated MECOM (Management Employee Communication Meeting), at its Bhopal 33 NIT Bhopal- Management Studies Department
unit. This plan entitles each worker to a presentation which facilitates open communication among workers and the senior management. This unique practice welcomes free criticism, appreciation, complaints and feedback from one and all. BHEL intends to bring about a revolutionary change through the incorporation of its new concept MECOM. BHELs initiative is a step towards understanding the organization at every level of management. It identifies the importance of its people and how people are its greatest assets which will finally take the organization to greater heights. Through this initiative, it seeks to strengthen the character of disclosure and transparency so that there is an unrestricted flow of information, which will create a conducive atmosphere for employee as well as organizational growth. There are ship councils, canteen committee, township committee etc to promote sharing and soliciting employees ideas. There are specifically dedicated knowledge management portals, a full scheme on developing knowledge workers, a Mentoring scheme , a multi-skilling scheme; where sharing is done on a very continuous basis.
3. Developing an atmosphere of Performance linked payments BHEL Reward performance through a very well documented Reward Scheme that rewards both individual and group performance and certainly there are no rewards below a certain level of performance. They have introduced a PRP scheme based on which the employees are paid bonus linked to their performance. There are many other schemes like IMPRESS and an IPR (Patent) scheme that reward excellence in performance. 4. Fair Evaluation System for Employees BHEL e-MAP system ensures all the parameters of fair Evaluation. All executives and supervisors are mapped through their balanced score cards. The measurement is not only of performance but also that of quality of performance. We at BHEL tend to measure behavioral traits too for identifying futures leaders and specialists. The whole process provides effective feedback leading to discussions and improvements. There have been continuous improvisations in this scheme for better and just evaluation. 5. Getting the right person in right time
BHEL has been the first PSU to introduce an online system of recruitment even at artisan level. This has ensured a very quick yet transparent system of recruitment, they announce the results the next day of written test or interview and today this stand as a bench mark process amongst PSUs. They have gone into exercises of identifying the core and non core areas for recruitment, effective redeployment of existing manpower through retraining. They have retainership scheme for retaining the expert manpower much needed in the organization. Thus in BHEL we have been exploring all the resources to get the best person in time and for the right job. 6. Training and development: BHEL have invested hugely here. They have specially designed focused training programmes at executive, supervisor and worker level inductees. A full fledged system is in place to identify the training needs of existing employees. Multi-skilling with a host of behavioral training programmes forms the back bone of our training objectives. BHEL mentoring scheme takes special care of their endeavors like LEAN, DTC , 6 sigma, 5S have been introduced through extensive training
6. Compensation and benefits: BHEL have been extremely good when it comes to pay packages and benefits. The recent wage revision has led to a very handsome increase in salary of workers. Insurance coverage, death relief, medical care , township facilities, parks, schools, colleges, community centers, holiday homes, education fees, libraries, various allowances, places of worship, extensive sports club, swimming pool, Yoga Centre, cooperative societies etc. are all various benefits that ensure at BHEL. 7. A culture of Continuous Improvement The PCMM model and SAP for HR BHEL have introduced a model called PCMM (People
Capability Maturity model) for continuous improvement of HR practices. The model is based CMM model practiced in software industry and BHEL is first PSU to introduce this model for HR practices. This shall hels in establishing the best form each HR practice and that too uniformly across the organization. BHEL have introduced SAP for HR function and HR deliverables are now sourced through SAP only. 8. Care
Swasth Karamchari Yojna
I. Study on Social Security & Welfare Schemes in BHEL
1.1 Introduction Social Security is one of the fundamental needs of the day. Freedom and security against economic risk is the minimum that must be secured in under developed economies as early as possible.
In the view of International labor organizations, Social Security is that security which a society furnishes through appropriate organization against certain risk to which its members are exposed.
Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions. It is a collective name for those measures, which a society has provided to meet such contingencies .The earning power of the workers may be affected by sickness, maternity, invalidity, employment injury, old age and death. It is not possible for workmen individually to make adequate provisions 39 NIT Bhopal- Management Studies Department
against these risks. Therefore, the benefits of social security are admissible to all. Some important schemes for the Social Security of the workers are as follows:-
Group Saving Linked Insurance Scheme (GSLIS) Death Relief Fund (DRF) Employee Deposit Linked insurance (EDLI) Group Insurance Scheme (GIS) The payment of Gratuity Act, 1972 The employees family pension scheme Provident Fund
1.2 Welfare
Dictionary meaning of welfare is exemption from calamity or enjoyment of health or prosperity. In other words welfare means peoples health, happiness or comfort. According to international labor organization Workers welfare should be understood as meaning such services, facilities and demenities which may be established in, or invicinity of an undertaking to enable the persons employed there to perform their working healthy congenial surrounding and provides all voluntary acts by employer aimed at improvement and 40 NIT Bhopal- Management Studies Department
betterment of workers social moral and social economic and intellectual conditions. According to Royal Commission of labor The term welfare, as applied to the industrial worker, is one which most necessarily is elastic, bearing somewhat different interpretations in the degree of industrialization of workers. 1.2.1 Welfare Schemes in BHEL
In compliance with the provisions of the factories Act 1948, BHEL Bhopal has undertaken a number of welfare measures for the welfare of its employees and their family members. The various statutory & non statutory welfare measures are discussed as below:-
1.2.1.1 Statutory welfare scheme 1. Washing facilities: - Washing facilities like soap, cleaning powder are being provided for the workers at their work place. 2. Facilities for storing: - In all the manufacturing blocks as well as in all annexes, the employees have been provided with cupboard/almirahs to keep their personal belongings. 41 NIT Bhopal- Management Studies Department
3. Facilities for sitting: - Workers have been provided with suitable sitting facilities while worker may find a pause to rest. 4. First-aid & Ambulance room: - As on date 158 first-aid boxes have been provided to manufacturing
blocks/annexes, canteens. These boxes are kept with employees having knowledge of first-aid procedures with training n medical care being provided to them of and on . The contents of these boxes are periodically checked and filled in as and when necessary. 5. Canteens: - there are 03 works canteen at present pulse one staff canteen catering to the needs of employees. Besides these, one canteen is functioning in Hospital for the patients. These canteens supply Meals, tea, coffee, snacks, and sweets. In works canteen No.3 special provision for women employees has been made for their meals, snacks etc.
6. Crche: - Adjacent to works canteen No.3 there is provision for crche. Children up to the age of 6 years of the working mother are kept from 7.00 am to 5.00 pm. 42 NIT Bhopal- Management Studies Department
Provision is made for fruits, biscuits, milk, meals to these children. Presently about 30 children have been accommodated in the crche.
7. Shelter, rest rooms and lunch rooms: - Both in works canteen and in staff canteen suitable arrangements have been made for workers who bring meals with them.
8. Labour welfare Officers: - Under Human Resources Management Division 12 welfare offices and 16 labour welfare supervision are functioning to look after the welfare of employees.
1.2.1.2 Non- Statutory Welfare Scheme:
1. Educational facilities: - In BHEL Township there are four Hr. Sec. Schools functioning under BHEL Education Society. Two colleges and a nursing college are also functioning in the township.
2. House accommodations: - All employees (100%) have been provided with residential accommodations. BHEL Bhopal has also allotted land to their employees who have constructed their own house.
3. Medical facilities :- BHEL Bhopal has a well equipped Kasturba Hospital along with four peripheral dispensaries in each of its four townships plus one occupational health center in the factory premises; equipped with necessary health facilities & infrastructure. Employees and their dependents are given free medical treatment. A highly subsidized contributory health scheme exists for retired employees. Kasturba Hospital is a 400 bedded hospital with nearly 88 doctors and 91 nurses and with a staff of 44 NIT Bhopal- Management Studies Department
over 285 employees. Besides the regular employees numbering 8000+, Other beneficiaries include nearly 42000 dependents and 14000 retired employees. Some of the most sophisticated surgical procedures in the field of Cardiac and neurocare, complex orthopedic, operations like knee and hip surgeries are being done.
4. Uniforms :- BHEL provides to all categories worker uniforms clothing along with safety shoes.
5. Different Social/ Cultural Associations :- For the social and cultural activities of the residents of BHEL township,17 cultural associations like Malayalee Association, Tamil sangam, Bangla Sanskritik Parishad, etc. exist. Infrastructural support by way of accommodation, water, light is provided by BHEL. BHEL is having a number of clubs for their employees viz., for executive (BHEL SENIOR CLUB), for supervisor (ATA CLUB) and for workers (AGA CLUB). Yoga center are there where yogic exercise are being given by the trained teachers for the benefits of the employee and their family member. 45 NIT Bhopal- Management Studies Department
6. Parks: - 19 parks are being maintained in the township.
7. Sports Activities: - To promote sports activities BHEL management has provided for one huge sports complex (including a sports stadium and golf course). Facilities for almost all sports and games are provided (both indoor and out-door).A sports Authority has also been established to look after such facilities, inter-unit tournaments etc. This sports complex is NIS certified.
8. Community Centers: BHEL has many community halls in

BHEL township which provides following facilities: Library: Library / reading room where national/ local news are provided free of cost. Games: Both indoor and outdoor facilities are available for the benefits of employees and their family member. By charging very nominal; charges of Rs.2/- to RS.5/- pre person per game. Marriage hall: BHEL Township is providing the facilities of solemnizing the marriage of the sons/ daughters of their employees. This facility is available at very nominal charges. 46 NIT Bhopal- Management Studies Department
9. Public Grievance Cell: To redress the Grievances of the inhabitants of BHEL Township, Shopkeepers etc. a Public Grievance Cell is functioning at Town Administrative Office and HOD of the township heads this cell. The objective of this cell is to look into the grievances of the complainants and resolve amicable solutions.
10.
Tree Plantation: BHEL Bhopal is very conscious of
its surroundings and environment. BHEL Town Ship and factory is well known for its greenery. Every year a large number of saplings are planted in the month of August. The plantation drive continues almost throughout the year. On an average, 15,000 saplings are planted every year.
1.3 Statutory labor welfare facilities
Statutory Facilities are those, which are provided by law. There are compulsory facilities. Every concern has to make arrangement of such facilities so that worker can do the work without problem. These facilities are important for every 47 NIT Bhopal- Management Studies Department
organization for improving health and for providing safety to the worker. Some of the important health, welfare and safety provisions are given under factories act 1948. Some important facilities are: Cleanliness Drinking Water Proper lighting Bath Rooms facility Medical facility Shelter , restroom and lunch rooms Washing facilities Crches Disposal of waste and effluents spittoons
1.4 Non Statutory labor welfare Facilities
Non-statutory facilities are those facilities, which are not prescribed by law. These facilities are provided by the management to the workers for avoiding labour turnover and absenteeism and for giving maximum satisfaction & job security to them some of the non-Statutory facilities are as follow: Conveyance facility Education facility Housing facility Loan and advance facility House rent allowance (H.R.A) Leave travel allowance (L.T.A) Recreation facilities
1.5 Objectives of the Study The main objectives of the study are as follows:a) To know about the Social security schemes and policies followed by the company. b) To know about the Welfare Schemes of the company. c) To gather the information about the structure of the schemes in BHEL. d) To gather the information about the process of
implementation of the schemes in BHEL. e) To know about the rules and regulations followed by the company for various policies and schemes.
f) To know about the effectiveness of the schemes for both the employees and the organization.
2.1 Social Security Schemes in BHEL BHEL Bhopal has undertaken a number of Social security Schemes for the Security of its employees and their family members. In compliance with the provisions of the factories Act 1948, The workmens Compensation Act 1923, The employees Provident Fund Act, The payment of Gratuity Act and others. The various Social Security Schemes in BHEL are discussed as below:-
2.1.12 Group Saving Linked Insurance Scheme (GSLIS) 2.1.13 Death Relief Fund (DRFS) 2.1.14 Employee Deposit Linked insurance (EDLI) 2.1.15 Group Insurance Scheme (GIS) 2.1.16 Group Personnel Accident Policy(GPAP) 2.1.17 Gratuity 2.1.18 The employees family pension scheme 2.1.19 Provident Fund 2.1.20 Earned Leave 2.1.21 Retired Employees' Contributory Health Scheme 2.1.22 Act: The workmens Compensation Act, 1923 2.1.1 Group Saving Linked Insurance Scheme
The BHEL Group Savings Linked Insurance Scheme which effect from April 1987 provides an insurance cover for all the regular employees and promotes savings to provide financial assistance to the employees / beneficiaries at the time of retirement or insurance cover in the event of death while in service. This scheme is applicable to all the full time / regular employees between the age of 18 and 60 years borne on the pay rolls of the Company and drawing pay in the salary grades of the Company. 2.1.1.1 Amount Insured The assurance which shall be effected on the life of each member is for the sums assured as under:
Category - Salary Grade wise
Sum Assured (Rs.)
AI/BI to A VI/B VI grades, S-0, 10,000/all temporary against employees regular recruited
vacancies either on daily rated wages or on consolidated wages . AVII/BVII to AXI/BXI, 20,000/52 NIT Bhopal- Management Studies Department
SA1/SB1 Executives
to SA3/SB3, Jr.
E1 to E4 and other equivalent 40,000/grades E5 and above. 80,000/-
2.1.1.2 Premium Per Month. (In Rs.) Sum Assured Monthly Premium 10,000/20,000/40,000/80,000/13.50 27.00 54.00 108.00 5.00 10.00 20.00 40.00 Risk Portion Savings Portion 8.50 17.00 34.00 68.00
The Risk Portion will be borne by the Company and the Savings portion will be contributed by the employee.
2.1.2 Death Relief Fund (DRFS)
The BHEL Employees Death Relief Fund Scheme / Death Relief Scheme give monetary assistance to the families of the members who die while in service of the company. Scheme covers all categories of employees who have voluntarily enrolled themselves as members of the scheme. The scheme is administered by a committee formed by respective unit management. Category All Employees Contribution amount per employee Rs.5/per death
All Employees have to pay Rs.5/- for each death during the corresponding month. The amount is deducted from the Salary of the employee every month. 2.1.3 Employee Deposit Linked insurance (EDLI) BHEL Employees Deposit Linked Insurance Scheme is a Group Insurance scheme operating with Life Insurance Corporation of India. This scheme is in lieu of the statutory 54 NIT Bhopal- Management Studies Department
EDLI scheme 1976 which is applicable to all the Provident Fund subscribers. The scheme is applicable to all the full time regular employees between the age of 18 and 60 years on the pay rolls of the company and drawing pay in the salary grades of the Company. 2.1.3.1 Amount Insured This policy confers a uniform cover of Rs. 1,32,000/- to all categories of employees of the company and is applicable to all employees of the company covered under Group Insurance Scheme. Category All Employees Assured Amount Rs.1.32,000
2.1.4 Group Insurance Scheme (GIS) The BHEL Employees Group Insurance Scheme one year renewal term assurance plan presently with Life Insurance Corporation of India provides graded insurance cover. The scheme is applicable to all the full time regular employees between the age of 18 and 60 years on the pay rolls of the company and drawing pay in the salary grades of the Company. 55 NIT Bhopal- Management Studies Department
2.1.4.1 Amount Insured The assurance which shall be effected on the life of each member wef 1/11/2007 is as follows:
Grade Category and Salary Grade A
Sum Assured (Rs.)
AI/BI to AVI/BVI grades, S-0, all 2 Lakhs temporary employees recruited against regular vacancies either on daily rated wages or on consolidated wages.
AVII/BVII SAI/SBI Executives to
to
AXI/BXI
& 4 Lakhs Jr.
SAIII/SBIII,
E1 to E4 and other equivalent 7 Lakhs Grades.
E5 and above
10 Lakhs
2.1.5 Group Personnel Accident Policy (GPAP)
The scheme is applicable to all the full time regular employees between the age of 18 and 60 years on the pay rolls of the company and drawing pay in the salary grades of the Company.
This Policy is meant to cover accidentally caused body injury due to external reasons except natural deaths, death due to disease and suicide. The term Accident has a wide connotation. The death/injury need not occur only in connection with an official duty in order to be eligible for compensation. The cover will be in force anywhere in the world.
This policy started from the year 2002 and currently it is in tie up with the ICICI LOMBARD.
2.1.5.1 ICICI LOMBARD
These tie ups changes every year and the span of the policy is from July to June. In the Previous year it is tied up with TATA AIG. During the financial year (July2101-June2011) company paid a premium of 72 lakhs Rs. for 46224 employees (all employees of BHEL.)
2.1.5.1.1 The compensation available is as follows: 1. Full sum insured in case of death due to accident. 2. Prescribed percentage of sum insured in case of loss of limbs resulting in partial or total disablement. 3. Cover for total temporary disablement will covers inability to attend office on account of all types of injuries on the advice of the Doctor @ 1%(One percent) of Sum Insured (limited to Rs 5000.00) per week for absence in excess of eight weeks. Prorata payment will be made for part of the week, if applicable.
2.1.5.1.2 The coverage for employees posted at sites and other than at sites is as follows Sl.No. Category Other site employees Executives 1 Executive including Trainees / 5.00 10.00 12.00 15.00 A B C than Site (Rs.in lakhs) Category
Supervisors in Executive Grades
Supervisors & Workers in Supervisor Grades Supervisor Grades, trainees, temporary recruited
4.00 8.00 10.00 12.00
Employees in Worker employees
against regular vacancies either on daily rated wages or on consolidated wages
3.00 6.00 8.00
10.00
All foreign sites will be treated as Category C sites. 2.1.5.1.3 Process
STEP 1- Intimation of the accident of the employees is given to the agency by the company. STEP 2Filling of claim form personal accident insurance
which contain:Incident report FIR(accident cause outside of campus and death whether inside or outside of campus) Leave certificate Sickness certificate Treatment papers Discharge certificate In case of death: FIR Death certificate Post mortem report 60 NIT Bhopal- Management Studies Department
STEP 3- This filled forms is sent to the agency for cross checking .Agency have their own medical officer who cross check the disability percentage in case of injury. STEP 4- If everything is satisfied then the company pays the capital insured amount within 3-4 month.
2.1.6 Gratuity Gratuity means a small sum of money given to a person as a reward for good service. This rule recognizes the employees service by the management. It is provided only when an employee complete minimum of 5 years of service in the company & in continuation. Gratuity thus mainly depends on the number of years in services & monthly wages. 2.1.6.1 Gratuity Calculation:
Gratuity = [(Basic +DA+ Service Wt. )* Length of Service * 15 ] 26
Gratuity is received only when an employee willingly resigns or retires. Its maximum limit is up to Rs.10,00,000/- (lumpsum amount).
The ceiling limit of gratuity amount payable in case of death of an employee are as follows: A. during the first year 2 of service B. emoluments months' months'
after one year but 6 before 5 years of service emoluments
C.
after completion of 12 5 years but before emoluments 20 years of service
months'
D.
service of 20 years
Half a month's more emoluments for completed half year of qualifying
service subject to a maximum of 33 times the emoluments provided the amount of death gratuity shall in no case Rs.3,50,000/-. exceed
2.1.7 The Employees Family Pension Scheme
Employees' Pension Scheme-95 came into effect from 16.11.95. The Employees' Pension Scheme-95 has been conceived as a Benefit defined Social Insurance Scheme formulated following actuarial principles for ensuring long term financial sustenance. In BHEL Employees' Pension Scheme-95 is followed. Here the pension schemes include monetary benefits of Rs.1500-2000 per month as per the grade of the employee.
8.33% of pension is given out of 12% and rest of the amount is transferred to the Provident Fund Accounts of that employee. 2.1.7.1 Calculations: Let us take an example of employee having salary of Rs.1000/per month then, Employee contribution of 12% equals 120 Employer contribution of 12% equals 120 Now 8.33% of 1000 equals 83 And, 120-83 = 37 So, Fund For Pension Rs. 83/- (Employer Contribution) Fund For PF(Provident Fund) 37 + 120 = Rs. 157/where 37 is employer & 120 is employee contribution. NOTE: Pension doesnt exceed Rs.6500/-
For Example:If employee salary :- Rs. 20,000/- p.m. Employee & Employer contribution of 12% is :- Rs.2400/8.33% of 20,000 is 1666 but it doesnt exceed 6500 so 541 goes to the pension fund i.e. Pension Fund = Rs. 541/Fund For PF(Provident Fund) 2400-541 = 1859 1859 + 2400 = Rs. 4259/Where 1859 is employer & 2400 is employee contribution. 2.1.7.2 Benefits Newly introduced Employees' Pension Scheme-95 provides for following benefit package: 1. Pension for life to the member, on
superannuation/retirement and invalidation. 2. To the members of the family upon death of the member: a. Pension to Widow/Widower for life or till re-marriage. 65 NIT Bhopal- Management Studies Department
b. To children/orphan, two at a time additionally upto 25 years of age simultaneously with widow/widower pension. c. Children/orphan with total and permanent disability shall be entitled to payment of children pension or orphan pension as the case may be irrespective of age and number of children in the family. d. Facility for payment of pension to nominee in the event of member who is unmarried or without any eligible family member to receive pension, and e. Facility for payment of pension to dependent father/mother in the event the member dies leaving behind no eligible family members and no nomination by such deceased member exists.
2.1.8 Provident Fund It is that fund (pension fund) in which a monthly sum is set aside for an old age pension. Employee Provident fund is that amount of money which is deposited by every employee in the company during the services, so that invested amount could be withdrawn after retirement. Thus it is a very crucial part of each & every employees salary. 66 NIT Bhopal- Management Studies Department
CPF which is Company Provident fund is the fund where money of employee is invested every month & thus it goes to the companies account. Thus company also gives some amount of money from its own side which is equivalent amount as that of an employee contribution. Thus PF is a joint investment of both the company & its employees.
2.1.8.1 Provident Fund Calculations
Provident Fund = [12%(Basic salary + DA)per month] + [Equivalent amount by the company]
Interest on PF is also given which is in the range of 8 to 8.5% currently. Provisions like withdrawals can be made use of this scheme, like: 1. Temporary loan marriage of dependents 2. Permanent withdrawal own marriage, marriage of children , construction or purchase of house properties . This withdrawal can be made only once. & other
Before 1 year of retirement, 90% of total PF amount can be withdrawn. Thus in case of any need ,one can be safe & secure with the money of PF. PF is a compulsion and is provided to all employees.
2.1.9 Earned Leave Earned Leave is defined by the BHEL , as it is related to the number of years of service put in by the employees as under:No. of complete years of service Upto 5 yr Above 5 upto 10 yr Above 10 upto 15 yr Above 15 upto 20 yr Above 20 yr Entitlement of earned leave per annum(days) 22 24 26 28 30
On retirement, the remaining earned leave (taken in account of full service years) of the employee is paid by the last basic salary. If the employee wants to withdraw the money of Earned Leave 68 NIT Bhopal- Management Studies Department
during the period of the service than company pays for the Earned Leave as :-
Earned leave = (Basic of one day ) * Number of Earned Leave employees required ( remaining year) earned leaves from previous
On Retirement the earned leave is paid as:-
Earned leave = (Basic of one day) * (Total number of remaining earned leave in employees service)
2.1.10 Retired Employees' Contributory Health Scheme This scheme shall be known as 'BHEL Retired Employees' Contributory Health Scheme' effective from 1st Nov., 1985. The scheme is intended to extend medical cover to the retired BHEL employee and his/her spouse and spouse of an employee who dies while in service. This scheme is applied to all the categories of BHEL retired / deceased employees i.e , Regular employees who retired from service on attaining the age of superannuation after rendering a minimum of 5 years continuous service in the Company. A nominal amount has to pay by the employee and for his/her spouse per year and he/she is eligible to get all the medical facilities , treatments , medicines without any charge.
2.1.10.1 Sample Forms (to be filled by employees) Below are the sample forms to be filled by the employees for Social Security. Employees have to filled up these forms during the joining of their services. So as to gather the information about their personal profile, family, nominations and others. FORMS are as follows:-
1. BHEL GROUP SAVING LINKED INSURANCE SCHEME 2. BHEL EMPLOYEES GROUP INSURANCE SCHEME AND EMPLOYEE DEPOSIT LINKED INSURANCE 3. GRATUITY NOMINATION 4. PROVIDENT FUND 5. NOMINATION FOR DEATH RELIEF FUND
2.1.11 Act: The workmens Compensation Act, 1923
The Workmen's Compensation Act, 1923 is one of the important social security legislations. It aims at providing financial protection to workmen and their dependants in case of accidental injury by means of payment of compensation by the employers.
2.1.11.1 Main Provisions Under the Act, the State Governments are empowered to appoint Commissioners for Workmen's Compensation for; (i) Settlement of disputed claims, (ii) Disposal of cases of injuries involving death, and (iii) Revision of periodical payments.
2.1.11.2 Compensation In case of death the minimum amount of compensation fixed is Rs 80,000 and Rs. 90,000 in case of permanent total disablement. The existing wage ceiling for computation of maximum amount of compensation is Rs. 4000. The maximum 80 NIT Bhopal- Management Studies Department
amount of compensation payable is Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the case of permanent total disablement. 2.1.11.3 The process of providing The Workmens Compensation in BHEL
When an accident takes place in BHEL, it is judged on the basis of severity i.e. Major or Minor accident or Near Missed Case. Then Cases of disability is checked as: Total Temporary Disability: When the part of the person following an accident is temporary disabled and can be recovered or healed. Such Disabilities are termed as Total Temporary Disability. Total Permanent Disability: When the person following an accident is permanently disabled and cannot be recovered or healed. And cannot be used further in the factory, then such disabilities are termed as Total Permanent Disability. Partial Permanent Disability: When the part of the person following an accident is permanently disabled and cannot be recovered or healed. Such Disabilities are termed as Partial Permanent Disability. 81 NIT Bhopal- Management Studies Department
2.1.11.4 The Claim process Accident report Committee Amount of Compensation
2.1.11.4.1 Preparation of Accident Report and Compensation Amount:Accident report is prepared by referring the Workmens Compensation Act. 081 2000 ISO1778 (E-15 0995K) Case: 1. If Doctor Advice rest for 28 days or above then consider number of leaves as such. 2. If Doctor Advice rest for less than 28 days then deducts 3 days payment.
2.1.11.4.2 Procedure 1. Fill up the primary accident form. 2. Issue of sick leave with medical certificate by doctor. 3. Setting of enquiry officer team. a. Enquiry officer. b. Safety. c. Human resource. 4. Enquiry teams check the accident place and prepare the report by taking in consideration of the statement of eye witness. 5. Report is prepared about About the work worker is performing during injury. Whole incident about accident. Reason of occurrence. Measure to stop or avoid the accident. 6. Approval of report by : HR, Law, Finance, and HODs
7. HMC(Half Monthly Compensation ) , Lumsum Payment according to injury , Earned leave Payment is done. 8. The details of payment copy goes to the labour court where labour court asks the employee about the satisfaction level with the payment done to him/her in the presence of witness. 9. If everything is satisfactory then the case is closed. 10. Otherwise court gives the letter to the BHEL about the dissatisfaction of the employee and further proceedings were takes place. 3.1 Live Case Handling in BHEL There were 2 live cases studied in BHEL, related to Social Security they are :1. Accident Case 2. Death Case
3.1.1 Accident case Consider a case of Mr. XYZ. (Name hidden for security reasons) Accident Date: 9/1/2011 Re-Joining Date of Factory: 25/2/2011 84 NIT Bhopal- Management Studies Department
10/1/2011 24/2/2011 :- 46 days Age:- 25 years Injured during working hours causing fracture in palm with 4% permanent disability.
A procedure followed by BHEL: Amendments rules 08/2000/s0/778(e-150995k)
3.1.1.1 Rules of half monthly compensation (HMC) Calculation:
1. Annual Salary = 189756 Average Salary = Annual Salary/12 = 15813 25% of Average Salary = 3953.25 2. Taking pay of 15 days395325 15=26355 (pay for one day.) For 46 daysHalf monthly compensation263.5546=1212330 or 12123 85 NIT Bhopal- Management Studies Department
Rs.12,123/- is paid as HMC. 3.1.1.2 Rules for Earned Leave Calculation:
According to personal manual S.No (02/1998) (S.No/AA/KA/C/H/1/12 FEB 1998) NOTE: It is applicable only for 90 days leave for more days approval has to be taken by higher authority.
1.Earned leave for one monthBasic + DA = 11,700+5031 = 16,731 2. 16,731 30 = 557.70 (pay for one day) 557.70 * 46 = 25,654 (for 46 days) 3. 25654 12123 = 13,531(disability payment for earned leave) It means Half Monthly Compensation +Earned leave = total payment. 86 NIT Bhopal- Management Studies Department
= 25,654 Rs.25,654/- paid for earned leave. 3.1.1.3 Rules for Lumsum Payment: Detail accident report is given to the doctor for examine. Doctor provides the percentage of disability of worker. Rs.8000/- from 31 may 2010(before it was Rs.4000/-) Compensation Monthly Wage 4% of injury found in this case. AGE FACTOR- Factor for working out lumsum equivalent of compensation amount in case of permanent disability and death. In this case age is 25 which equals 216.14.
Payment is done asMonthly Wage * Age Factor * Disability percentage 100 Here , 8000 * 21691 * 4 100 = 6941120 6941120 12,123 (Half Monthly Compensation) = 57,288 87 NIT Bhopal- Management Studies Department
Rs.57,288/- is paid as Lumsum Payment. 3.1.2 Death case Consider a case of Mr. XYZ. (Name hidden for security reasons) Date of Birth:- 14/7/1955 Death Date:16 /3/2011 Mode of Death :- Road Accident Place of Death :- Near Jublee Gate of BHEL Case date of Duty attended :- 16/3/2011 Family members Information 1. Wife :- 100% nomination in every scheme 2. 4 son 1 daughter (2 son were less than 25 yr.)
AMOUNT PAID GPA :- 4lakhs Death Relief :- Rs. 45 , 485/ GIS :- Rs.40,000/ EDLI :- Rs. 1,20,000 /88 NIT Bhopal- Management Studies Department
GSLIS :- Rs. 25,000 /-(More compensation due to death) CPF :- Rs.10,57,015/ Gratuity :- Rs. 9,48,409/ Leave Earned :- Rs. 3,40,845/-
3.2 Findings of the Study BHEL follows the Social Security & Labour Welfare Schemes very effectively & efficiently. The Timeframe provided by the BHEL to give the compensation to their employees at the time of Accidents & Death cases is very less.
BHEL Personnel procedures and information regarding internal circulars etc. were communicated to the workers at the right time and it is be easily available. The relation between the management and employees was found quiet cooperative and constructive in nature. BHEL employees were very satisfied with the current Schemes. Successfully following the Social Security & Labour Welfare Schemes in BHEL increases the overall efficiency as :89 NIT Bhopal- Management Studies Department
Job Satisfaction
Reduction of Labur turnover & Absentees Efficiency & Capability
Prevention from Bad Habbits
Social Security & Labour Welfare
CoOperative Relation
Increase in Motivation Fullfillment of Family Needs
Increase in Production
3.3 Suggestions 1. LCDs in office flashing the current updates and the BHEL turn over and assets update and current stock rate. 2. Uniform off Day on Friday. 3. BHEL Office Bus for the employees and extra facility for the employees doing over time & working late hours.
4. Providing Coupons (such as , McDonalds , Dominos, Pizza Hut ,Big Bazaar , Reliance Fresh , etc.) in the end of the month for the employees who are coming to the office/work area at right time. Amount of coupons are according to the number of days they are punctual and at the right time. This acts as the motivation tool for the employees to come at the right time in the office/work area. 5. Installation of automatic tea and coffee machines and cold drink machines in BHEL. 6. Some management games should be played among the worker in the recreation hall, in this way their will be better coordination among employee and worker. 7. I had observe in the Gas Plants of BHEL, that proper ventilation was not there and the environment was very dusty 91 NIT Bhopal- Management Studies Department
which is not good from the point view of workers health. Thus, I recommend that management should consider it properly so that the atmosphere of these workshops could not effect negatively on employees health by introducing Electro Static Preceptor (ECP).
3.4 Conclusion
Every activity has its purpose or an objective behind it. Thus the efforts made were directed towards the achievement of its purpose. This project help in gaining experience and acquiring certain knowledge about the company, Human Resource Management practice in an organization like BHEL which is one of the industries in India and one of its own kinds. It has helped to correlate the subject taught in class and the way it is practiced at the site.
I would like to conclude that all employees are provided with Social Security measures and employee benefit schemes which play an important role in raising their efficiency and in turn increases the production level. 92 NIT Bhopal- Management Studies Department
This project has helped to study Social Security & Welfare Schemes and processing of various cases in the Human Resource Department of BHEL, Bhopal. It was found that most of the employees are well aware of the procedures and policies and are satisfied with the present system of dealing with the cases. Hence, handling of Social Security & Welfare
Schemes is quite effective in the company.
Bibliography
1. ^ Armstrong, Michael (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page. ISBN 0-7494-4631-5. OCLC 62282248. 2. ^ Towers, David. "Human Resource Management essays". http://www.towers.fr/essays/hrm.html. Retrieved 2007-10-17. 3. ^ "Personnel Management". The Columbia Encyclopedia (Sixth ed.). Columbia University Press. 3001. http://www.bartleby.com/65/x-/Xpersonne.html. Retrieved 2007-10-17. "personnel management see industrial management" 4. ^ Encyclopdia Britannica (kl ed.). "Personnel administration is also frequently called personnel management, industrial relations, employee relations" 5. ^ Golding, N. (2010) "Strategic Human Resource Management" in Beardwell, J. and Claydon, T. (2010) Human Resource Management A Contemporary Approach, FT Prentice Hall 6. ^ Storey, J. (2007) "What is strategic HRM?" in Storey, J. (2007) Human Resource Management: A Critical Text, Thompson 7. ^ Paauwe, J. (2009) 'HRM and Performance: Achievement, Methodological Issues and Prospects' Journal of Management Studies, 46 (1) 8. ^ Pfeffer, J. (1994) Competitive advantage through people, Harvard Business School Press 9. ^ Becker, B. and Gerhart, B. (1996) 'The impact of human resource management on organizational performance' Academy of Management Journal 39 (4) 779801 10. ^ Kochan, T. and Barocci, T. (1985) Human Resource Management and Industrial Relations, LittleBrown 11. ^ Delery, J. and Doty, H. (1996) 'Modes of theorizing in SHRM' Academy of Management Journal, 39(4), 802835 12. ^ Prahalad, C. and Hamel, G. (1990) 'The core competences of the organisation' Harvard Business Review 13. ^ Ulrich, Dave (1996). Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press. ISBN 0-87584-719-6. OCLC 34704904. 14. ^ The Strategic Impact of High Performance Work Systems 15. ^ Budhwar,P. and Aryee, S.,2008. Strategic Human Resource Management: Building Research through practice. London. CIPD 16. ^ Mckeena, E. and Beech, N.,2008. Human Resource Management:A Concise Analysis.2nd ed.England. FT Prentice Hall. 17. ^ Banfield, P. and Rebecca, K., 2008.Introduction to Human Resource Management .Oxford. Oxford University Press 18. ^ Wilson, J.P., 2009. Human Resource Development: Learning and Training for individuals and organizations.2nd ed.United Kingdom.Kogan Page Ltd

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A Project Report on :

" Study on Social Security &

1.2 Manufacturing Units of BHEL........................... ......

Study on Social Security & Welfare Schemes in BHEL.......................................................................39

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Date: 11 NIT Bhopal- Management Studies Department

Profile of the Organization

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1.1 Company History

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1.2 Manufacturing Units of BHEL

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1.3 Introduction to BHEL Bhopal

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1.4 BHEL, a candidate for Maharatna Company

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BHEL Human Resource Departments 2.1 Introduction

2.2 Description of HR Departments

3. Human Resource Systems Development It consist of all the functions like:-

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2.3 Functions of Some HR Departments

2.4 Levels of Employees

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Engineer/Executive Trainee Engineer/Executive /Officer Sr.Engineer/Executive /Officer

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2.5 Organizational Hierarchy

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2.6 Human Resource Practices in BHEL

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Swasth Karamchari Yojna

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I. Study on Social Security & Welfare Schemes in BHEL

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1.2.1.2 Non- Statutory Welfare Scheme:

6. Parks: - 19 parks are being maintained in the township.

8. Community Centers: BHEL has many community halls in

Tree Plantation: BHEL Bhopal is very conscious of

1.3 Statutory labor welfare facilities

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1.4 Non Statutory labor welfare Facilities

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Category - Salary Grade wise

Sum Assured (Rs.)

E1 to E4 and other equivalent 40,000/grades E5 and above. 80,000/-

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2.1.2 Death Relief Fund (DRFS)

Grade Category and Salary Grade A

Sum Assured (Rs.)

AVII/BVII SAI/SBI Executives to

& 4 Lakhs Jr.