PART-A 1.

INDUSTRY PROFILE
Industry is the backbone of every nation. Industry refers to manufacturing activity concerned with the conversion of raw materials or semi finished goods in to finished goods. Industry which consists of the group of similar companys i.e., the group of earth moving equipment companies are considered as the earth moving equipments industry. All the companys which are producing the goods which are used for the purpose of earth moving that is construction development of infrastructure. Growth of construction industry reflects the growth of the nation as well as the world. Therefore the study of construction industry is must. Hence we study the growth of the earth moving equipment industry. By the 1960s the earthmoving machinery industry was already a global industry, with machines from the United States, Europe and Asia being sold into earth moving application around the world. Several countries were beginning to develop standards and regulations for earthmoving machines, which created a challenge for the industry to be able to meet the different requirements in different countries. In more recent years with the growth of societys interest in the environment and safety, projects have been undertaken to harmonies the safety requirements. The dynamics within the earth-moving machinery industry are such that the number of manufactures continues to decline through mergers and acquisitions. There were multiple manufactures in many countries, the consolidation of these as subsidiaries or an affiliate of larger global or international manufacturers has occurred. The manufacturing industry is essential divided between a limited number of large enterprises and then a substantial number of small enterprises. The small enterprises occupy markets for specialized machines for quite specific applications, or serve only a limited geographical area. Many of these smaller enterprises are merged into the larger enterprises as such opportunities develop. The size of the earth moving industry globally is in the $60 billion (US) range. The businesses are principally located in Europe, Japan and the USA. Many of the enterprises have expanded to some of the developing countries. Major global enterprises use the technology wherever it is located to develop the machines and then search for the best locations to manufacture product. Many of the products are only produced in low volume and thus global exporting is the only way to keep production
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volumes efficient. The manufacturing industry is principally located in Europe, Japan and USA. Some manufacturing is done in China, Russia, Brazil, Asia-Pacific countries and some central European countries. The balance of participation between the main countries is quite good. Most significant participating countries are USA, Japan, Germany, Sweden, UK, Italy, and France. Brazil recently became a participating country. Within the global trade objectives is the need to provide common terminology and performance criteria for manufacturers in the specification of the performance of machines. Only when adequate standards that can quantify the performance of machines exist, are purchasers able to make informed decisions as to the value of the desired machines. Because earth moving machines are work machines used by customers to earn an income, purchasing decisions must be made on machines performance and ability of the machinery to satisfy the needs of the customer. As the technology becomes more advanced, the need for pre-standard research development and verification will also become more challenging. A significant challenge will be for participants to gain approval for the industry, or government to fund such work in order to produce sound technical standards. INDIAN SCENARIO OF PUBLIC SECTOR UNDERTAKING UNITS India has been ruled by foreigners for several years. And such, after independence India has given priority to strengthen the countrys defence force. Several industries producing defence equipment has been started by the government of India thereafter. India felt the need of having strong defence which is capable of defending its borders from neighbors. In this view, BEML has been established by ministry of defence. BEML was mainly established to produce defence equipments and heavy capital equipments like railway coaches, earth movers, machineries etc. Ministry of defence started one unit of BEML at K.G.F in the year 1964. It is one of the biggest units in Asia. BEML has number of branches all over India. Its various units in different parts of the country have immensely contributed to the growth of Indian economy. It not only has provided employment but also successfully achieved the advantage of economies of scale. Ancillary and small scale industries have been started around its vicinity. It is contributing to the economic growth both directly and indirectly. It has emerged as a powerful industries unit of Indian economy. 2. COMPANY

PROFILE
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BEML Limited (formerly Bharat Earth Movers Limited) was established in May 1964 as a Public Sector Undertaking for manufacture of Rail Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The Company has partially disinvested and presently Government of India owns 54 percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and Employees. BEML Limited, a Miniratna-Category-1, plays a pivotal role and serves Indias core sectors like Defence, Rail, Power, Mining and Infrastructure. The Company started with a modest turnover of ` 5 Cr during 1965 and today, thanks to its diverse business portfolio, the company has been able to achieve a turnover of more than ` 3,500 Cr. Its three major Business verticals viz., Mining & Construction, Defence and Rail & Metro are serviced by its nine manufacturing units located at Bangalore, Kolar Gold Fields (KGF), Mysore, Palakkad and Subsidiary Vignyan Industries Ltd, in Chikmagalur District. BEMLs products are sold and serviced through its large Marketing Network spread all over the Country. BEMLs products are exported to more than 56 countries. As part of companys globalization strategy, the company has expanded its global reach by opening local company at Indonesia and Brazil recently in addition to Malaysia and China offices. The company operates under three major Business verticals - viz. Mining & Construction, Defence and Rail & Metro. Each of the above Business is headed by a Director who acts as CEO of the Business and reports to the Chairman & Managing Director of the company. In addition to the above, Technology Division of the company provides end-to-end technology solutions in Auto, Aero, Defence and Rail & Metro related areas. Trading Division deals in non-company products. BEML manufactures and supplies Defence Ground Support Equipment such as Tatra based High Mobility Trucks, Recovery Vehicles, Bridge Systems, Vehicles for Missile Projects, Tank Transportation Trailers, Milrail Wagons, Mine Ploughs, Crash Fire Tenders, Snow Cutters, Aircraft Towing tractors, Aircraft Weapon Loading Trolley. BEML operates on three major business verticals for associated equipment manufacturing: Mining & Construction Defence Rail & Metro In addition to the above there are three Strategic Business Units (SBUs): Technology Division for providing end-to-end engineering solutions
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Trading Division for dealing in non-company products International Business Division for export activities

The company has 9 manufacturing units spread over the following locations: Kolar Gold Fields (KGF) Complex (around 100 Km from Bangalore) o Earth Moving Division o Rail Coach Unit II o Heavy Fabrication Unit o Hydraulic & Power line Division

Mysore Complex (around 130 Km from Bangalore) o Truck Division o Engine Division

Bangalore Complex - Rail & Metro Division Palakkad Complex Vignyan Industries, a subsidiary located at Tarikere (around 300 km from Bangalore) Steel Castings

BEML's nationwide network of sales offices enables buyers with ready access to its wide range of products. Also, the full-fledged service centers and parts depots offer total equipment care, maintenance contracts and rehabilitation services. The company has been registering consistent growth in sales and profits and has made a turnover of ` 3,558 Cr in 2009-10 registering a growth of 18% over the previous year with a Profit Before Tax of ` 320 Cr and has orders on hand of over ` 5,000 Cr as of end March 2010. The Company has drawn up VISION 2013 with an ambitious growth rate of 12% CAGR for crossing `5,000 Cr turnovers With this emerging prospects, BEML has plans to cross ` 5,000 Cr in the next 2 years and is poised to achieve ` 10,000 Cr mark by 2016-17 and the company is gearing up with necessary infrastructure for achieving the same.

a. BACKGROUND & INCEPTION OF BEML:

BEML limited is a PSU under the effective administration of Ministry Of Defence (department of Defence supply). The organization was setup in the late 40s as part of HAL now known as HINDUSTAN AERONAUTICS LIMITED to manufacture rail coaches. It gradually diversified earth moving equipment in 1964.The company was incorporated in the first five year plan when India was very weak economically. The main objective of setting up the organization was to manufacture heavy earth moving equipment. Rail coaches heavy duty trucks, truck-laying equipment etc. b NATURE OF BUSINESS CARRIED: 1. MINING & CONSTRUCTION 2. DEFENSES & AEROSPACE 3. RAIL & METRO 4. INTERNATIONAL BUSINESS 5. TECHNOLOGY DIVISION 6. TRADING DIVISION c. BEMLS VISION: To become a market leader, as a diversified company supplying products and services to Mining & Construction, Railway & Metro and Defense Services and emerge as an International Player. BEMLS MISSION 1. Improve competitiveness through organizational transformation and collaboration / strategic alliances / joint ventures in technology. 2. Grow profitably by aggressively pursuing opportunities in national and international markets. 3. Attract and build people in a rewarding and inspiring environment by fostering creativity and innovation. QUALITY POLICY Quality is the hallmark of excellence. BEML Limited views Quality improvement as a business strategy and hence remains proactive in the areas of product and service quality. At BEML, a Corporate Quality Policy
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emphasizing Total Quality Management ensures that quality system adopted results in products, services and processes that meet stringent standards and requisite performance criteria. A separate Quality Department spearheads the thrust towards Total Quality Management. All the manufacturing units of the company have been certified for ISO 9001-2000 Quality Management System Standards. The facilities include custom made test tracks to evaluate performance of the equipment. Also, the manufacturing divisions are augmented with test facilities available at its R&D / Technology Division. Laboratories at R&D, KGF and Mysore Complex are accredited to National Accreditation Board for Laboratories (NABL) covering Calibration of Flow, Pressure, Torque and Mechanical Measuring Instruments. Both EM and HP Division of KGF Complex have been accredited with ISO 14001-2004 EMS certification. Well established vendor base is a key strength of BEML. Vendor assessment and development is a key component of the company's strategy for achieving Total Quality. BEML actively promotes small group activities to encourage and enhance 'Quality Culture' at all levels. The small group activity teams regularly participate in regional / national / international level competition and have achieved recognition as meritorious performers. It is our proud privilege to mention that our QC teams have raised the BEML flag high in the international arena by winning.

?Silver Medal? in the recently concluded ICQCC ? 2009 international competition held ?Gold Medal? in the ICQCC-2008 international competition held at Dhaka, Bangladesh

at Sebu, Philippines

d PRODUCT PROFILE
BEMLs product that is .Machines that builds the Nation. Find their application in core sectors of economy in the country viz mining, agriculture, energy, Irrigation, cement, steel, construction, rail and road transport apart from defence. The company has three ranges of
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products like earth moving equipments, defence product and railway products. The BEML Products are Mining Machines Electric Shovels Bulldozers Wheel Dozers Dump Trucks Motors Graders Pipe Layer & Tyre Handlers Giant Walking Dragline for open cost mine Hydraulic Excavators Defence equipments Multi-role Vehicles Transportation Trailers Tatra vehicles for terrain operations Ammunition Loaders Radar Career Vehicles Bridge Layer Field Artillery Tractor Medium or Heavy Recovery Vehicles Aircraft Towing Tractor Armored Recovery Vehicle Diesel engines 100-1000 hp engines for contribution and mining equipments Irrigation Pumps Marine Vessel Engines Compressors Energy Diesel genets Road construction equipments Vibrating Compactors
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Pneumatic-tyred Rollers Batching and Mining Plans Disaster management equipments Radio-Control Dozers Hydraulic Excavators with Demolition Attachments Robotics and automation Industrial Welding Robots Machine Tending Robots Hydraulic aggregates Gear Pumps Cylinders/Suspensions Control Valves Axler Power Take-offs MINING AND CONSTRUCTION CRAWLER EQUIPMENT Hydraulic Excavators Loading Shovel Backhoe Bulldozers Pipe Layers Electric Rope Shovel Walking Draglines Road Headers Telescopic Excavator Side Discharge Loader WHEELED EQUIPMENT Wheel Loaders Backhoe Loaders Motor Graders
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Water Sprinkler Rear Dumpers Wheel Dozers Tyre Handlers Bottom Dumpers RAILWAY TRANSPORTATION Integral Rail coaches Track laying equipment Overhead Equipment Inspection Car Electrical Multiple Units Rail Bus Rotem Coach Spoil Disposal Unit Muck Wagons

e. AREA OF OPERATION- Global / National / Regional

BEML operates globally, nationally and also regionally and it has its own Marketing and Service network operating throughout the Country. The major collaborators are Komatsu, Japan Dressers, USA Burmar, Poland General Electrical, USA IGM, Austria Indresco, USA Mitsuimile, Japan Omnipol, Czechoslovakia WAPSO, USA Voest Alpne, Austria It exports its products to nearly 30 countries like Algeria, Bulgaria, Egypt, Indonesia, Kumait, Iraq, Ghana, Senegal, Sri Lanka, Jordan, etc. The major ones are Italy, Tunisia, Syria, Zambia, S.Africa, Pacific Island, UK.

BEML has 10 regional offices and 15 district offices. Regional Offices:Bilaspur, Chennai, Hyderabad, Kolkatta, Mumbai, Nagpur, New Delhi, Ranchi, Sambalpur and Singrauli. District Offices:Ahmedabad, Asansol, Bhilai, Bhubaneswar, Chandrapur, Dhanbad, Guwahati, Jammu, Madurai, Nayveli, Panjim, Ramagundam and Udaipur. BEMLs Major Customers:1. Metro Rail supplied to Delhi Municipal Corporation (BEML). 2. Coal India Limited and its subsidiaries. CIL, SCCL, TISCO, and other steel and Other manufacturers. 3. Central PWD, state PWD and other companies in construction sector. 4. ONGC, OIL, AOC etc, involved in research works. 5. Thermal Power, Hydro electricity, etc producing energy. 6. State electricity Boards like PSEB, TNEB 7. Defence etc

f. OWNERSHIP PATTERN:
As BEML is a public sector undertaking PSU, 54.03% of its share is held by central government itself and the rest is held by private people. The decisions are taken by the CMD of BEML with the assistance of three business directors, two functional directors and officers.

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CATEGORY

NUMBER SHARES

OF

% OF EQUITY

Promoters The president of India Institutional investors Mutual funds & UTI Banks/financial institutions/ Insurance (central/ State govt.institutions/nonGovt. institutions) FIIs Others Private bodies Indian individual NRIs/OCBs Any other-trusts Total publiccorporate companies

2, 25, 00,000

54.03

55, 97, 860 40, 81, 333

13.44 9.80

56, 15, 855

13.49

11, 41, 449 24, 74, 380 2, 18, 052 15, 571

2.74 5.94 0.53 0.03

4, 16, 44, 500

100.00

Dematerialization of shares and liquidity: Out of 4,16,44,500 shares, 2,25,00,000 shares are held by the president of India (promoter) in physical form. Of the balance 1,19,44,500 shares, 1,89,06,220 shares were held in dematerialized form as of 31st march, 2010 which works out to 98.76% of the paid-up capital held by public.

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g. COMPETITORS INFORMATION Beml ltd is facing competition from Multinational Companies and Domestic Industries such as, 1. Hindusthan Motors, India 2. Caterpillar, Russia 3. Larsen and Toubro, Japan 4. Telco, Wabco. 5. J.C.B 6. Larsen and Turbo, Japan 7. Hindusthan Motors, India 8. Integral coach factory Perambur, Tamilnadu 9. Rail coach factory Kapurtala, Punjab

SL NO 1. 2. 3. 4. 5. 6. 7.

COMPANY
Beml LARSEN&TURBO ASHOK LEYLAND GENERAL MOTORS CATERPILLAR HINDUSTAN MOTORS OTHERS

MARKET SHARE
70% 3% 2.8% 13% 6.2% 4.2% 0.8%

h. Infrastructural facilities

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1. Medical facilities Special emphasis is being laid to provide medical facilities to the employees and to their dependents. Modern medical centre has been established. BEML also provides Post Retirement Medical benefits to its Retired employees. A modern medical center has been established with the following infrastructure. General medicine. General surgery. Clinical pathology. Radiology. Dental surgery. ENT. Physiotherapy. Pediatrics. : 36 [32 permanent & 4 temporary] : 100

Number of doctors Number of beds 2. Canteen facility

Number of card holders: 35,707 (6972 employees & 28735 dependents) BEML provides good canteen facility to its employees. There is bifurcation of canteen between Workers and Executives. The food provided is hygienic and of high quality. The price charged for Food, Tea, Coffee & snacks is very low. Canteen expenditure for the year 2010 is Rs. 252, 91 lakhs.

i. ACHIEVEMENTS & AWARDS

CMD received the 'SCOPE Award for Excellence and Outstanding COntribution to the Public Sector Management - Medium PSE CategoryD' for the year 2006-07 CMD received Raksha Mantri's Award for 'BEST DEFENCE PSU' for the year 2007-08 CMD received the 'BEST PSU AWARD' instituted by India's leading B School, Indian Institute of Planning & Management held at Bangalore on 25th March 2009

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Southern Region of EEPC India awarded BEML with 'Silver Shield' for Star Performer as a Large Enterprise for its outstanding contribution to Engineering Export held at Trivandrum on 11th February 2009

CMD received the 'Raksha Mantri's Award for Excellence' for 'Best Performance in Exports' held at New Delhi on 7th November 2008 CMD received the 'ROTARIAN AWARD' of Vocational Excellence in their District Conference held at Bangalore on 9th February 2008 CMD received the 'BEST CEO AWARD' from Mr. SK Sharma, National President , Indian Institute of Materials Management (IIMM) on 30th November 2007 at Chandigarh

Conferred Star Performer Award by Engineering Export Promotion Council, Southern Region on 24th November 2007 Award for Excellence in Technology and Innovation from Confederation of Indian Industries (CII) Rated AAA by ICRA in January 2007 Received 'Golden Peacock Award for Innovation Management' from Institute of Directors on 14th January 2007 Ranked 4th Best Wealth Creator among 21 Best Wealth Creators of India and the 1st among PSUs (US$ 1 in 2002 has appreciated to US$ 62.64 in 2007) by Dalal Street Magazine

Conferred Mini Ratna Category-1 Status by Ministry of Defence, Govt. of India during August 2006 Received Golden Export Award from Government of Karnataka, India during August 2006 Received Enterprise Excellence Award from Indian Institute of Industrial Engineers during May 2006 Received Excellent MoU rating in 2005-06 Award for Outstanding Export Performance from Engineering Export Promotion Council (EEPC) during February 2005 Award for The Largest and Most Profitable Construction Equipment Company - 1st Rank from Construction World - NICMAR 2007
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Awarded UDYOG RATAN AWARD (Gold Trophy) by Institute of Economic Studies, New Delhi, during October 2004 Received Niryat Shree Gold Trophy category for the financial year 2000-01 from Federation of Indian Export

Organisations for its outstanding export performance in Export House/Non SSI

National Award for Import Substitution for Crawler Mounted Shovels (2 to 2.5 bucket Cu., M. Capacity)

j.

Work flow model

Work study is a term used to embrace the techniques of method study and work

measurement, which are employed to ensure the best possible use human resources and material resources in carrying out a specified activity. The movement of workers and materials on the larger scale, we have been concerned with the more efficient use of existing plant and machinery through the elimination of unnecessary idle time, the more effective operation of processes and the more efficient use of the services of labour through elimination of unnecessary and time-consuming movement within the working area of factory, department or yard. PRODUCTION DEPARTMENT: The production process involved in the manufacturing of earth-moving equipments is briefly explained in the following diagram

Flow Chart of Production Process

Input
(Raw materials & components)

Holding stores

Production

1) Machine shop 2) Plate shop 3) Gear shop 4) Heat treatment shop 5) Transmission shop 6) Tool room

Assembly Shops Department

Output
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This department is divided into many sub departments such as 1. Machine Shop. 2. Plate Shop. 3. Gear Shop. 4. Heat Treatment Shop. 5. Transmission Shop. 6. Tool Room
Work flow at BEML LIMITED (End to End) Production Planning Material Management Stores (Spares and Raw materials) Production control department Assembly Department Testing Packing Customers site Production planning is done at Corporate Office. This sent to all the departments in BEML LIMITED. This is usually done in the month of January base on previous years sales. The

Material Management department plans for the raw material and spares required sends requisition to Finance Department for approval for purchase. Once the material is purchased it is inspected and stored in different stores. The Production control department plans for number of equipment to be manufactured and supplies the required spare part for the assembly of the equipment to Assembly Department where they are assembled and painted. Later the equipment is tested at the factory and packed and delivered to Customers site.

k.FUTURE GROWTH AND PROSPECTUS

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The future growth is likely to merge the Indian railways rail coach production division with BEML. Thus the company would regain business it lost from the railways ever since the division was found. After successful implementation of DMRC which were supplied by BEML. They have decided to set up a state-of-art factory in Bangalore with Korean technology along with an R&D centre. BEML has in hand certain projects such as BMRC (Bangalore Metro Rail Coaches), HMRC (Hyderabad Metro Rail Coaches) after the success of DMRC. BEML bags Rs.632 crores order for supply of 788 BEML TATRA vehicles to Indian army on 18.03.2010. The company is also opening a new plant at Palakkad in Kerala for its aerospace division with a projected investment of Rs.260 crore. The Company has drawn up VISION 2013 with an ambitious growth rate of 12% CAGR for crossing ` 5,000 Cr turnover by 2013-14 coinciding with BEMLs Golden Jubilee year. With this emerging prospects, BEML has plans to cross ` 5,000 Cr in the next 2 years and is poised to achieve ` 10,000 Cr mark by 2016-17 and the company is gearing up with necessary infrastructure for achieving the same. The larger vision is to enable the company to make BEML as a Global Brand. BEML is planning to establish a Rs.316 Cr manufacturing facility in Bangalore for its Aerospace related business near Bangalore International Airport at Devanahalli. The new unit will hire 250 people and will provide design and manufacturing services in aircraft.

3. Mckensys 7s frame work

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1.STRUCTURE: Structure is the organizational chart and associated information that shows who reports to whom and how tasks are divided up and integrated. In other words, structure describes the hierarchy of authority and accountability in an organization, the organizations units relate to each other. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures- pyramidal, matrix or networked onesto accomplish their goals. Functional Departments Staff organization This organization has line and staff type of organization where the organization setup is basically that of the line organization but .staff. Officers are engaged to advise the line officers in the performance of their duties. Line officers are the executives and the staff officers are their advisers. In large industrial concerns which have numerous functions of complicated nature, this type of setup has proved highly beneficial to them. The organization has the following functional departments: 1. Personnel department 2. Finance department 3. Manufacturing/production department 4. Materials Management department 5. Planning department 6. Electronic Data Processing Department 7. Marketing division department 8. Maintenance and Quality Department

1. Personnel department: Personnel management is that part of management process which

is primarily concerned with the human constituents of organization. The main objective of personnel management is to maintain human relations between workers and management in order to have their maximum contribution to the effective working of that undertaking.
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2. Finance department: The function of this department is, Payment for suppliers against goods receipts, stock invoice, arranging finance from financial institutions, collecting receipts from customer through corporate offices. The following are the departments of finance: Material accounts, Bill payments, Bill receivables, Pay rolls, Cost accounts, Welfare accounts, foreign finance, and Local finance. 3.Production department: Improving volume of production, reducing rejection rates, Maintaining accuracy, Controlling idle machine and man hours Production, department is present in both Earth Moving and Hydraulics and power line division. Earth Moving division: The Companys earth moving division are located at Kolar Gold Fields, Mysore and Bangalore incorporate hi-tech manufacturing facilities with sophisticated CNC machines, arc-welding robots & FMS. A multi-million rupee heavy equipment shop turns out critical structures for industry. The company owns a captive foundry at Tarikere. At Kolar Gold Fields, located about 100 kms from Bangalore, BEML has established an extensive manufacturing base. Skilled workforce of over 6000 turns out state-of-the-art Bulldozers, Hydraulic Excavators, Wheel Dozers, Rope Shovels and Walking Draglines for the Mining and Construction industry. Sophisticated CNC machines and latest technology welding equipment are installed. Multi-million rupee heavy equipment shop has been set up for major fabrication with a capacity of 5000 MT. This shop turns out heavy structures. 4. Material management department; Purchasing activity of items depends on make or buy decision. In order to keep the wheels of an industry moving, constant supplies of necessary materials is of utmost importance. Such materials have to be procured in a systematic manner. Earlier it was referred as an act of buying but today with the growth of business activities it is termed as purchasing which encompasses a much broader sense. Today it implies as .a managerial activity that goes beyond the simple act of buying and includes the planning and policy activities covering a wide range of related and complementary activities. In other words the purchasing department not only performs the buying function but also the control and advisory functions. Purchasing involves the procurement of materials.

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5. Planning department: Planning is the primary task of every management. It is performed at every level of management. Planning is the determination of line of action to achieve the desired goals. Planning is deciding in advance what should be done, how should be done, what at a certain time and who will do it. Planning encompasses, Assessment of the future, Determination of the objectives, and Development of alternative courses of action, selecting the most appropriate course of action among, these alternatives 6. Electronic Data Processing department: This department looks after the maintenance of online system in the factory. Research and development division: Research and development activities are undertaken in this division which has state-of the-art facilities. 7. Marketing division department: A nationwide network of 33 marketing offices provides customers with immediate access to BEML's range of products and services. Marketing activities include field operations and intensive training of customer personnel in operation and maintenance of equipment.

MANAGEMENT HIERARCHY
Executive Director Chief General Manager General Manager Deputy General Manager Assistant General Manager Senior manager Manager Assistant Manager Assistant Officer/ Assistant Officer/ Engineer Engineer
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Organization structure
Share Holders Ministry of Defense Chairman and Managing Director Director Rail and Metro Director Mining and Construction Executive Director General Manager Deputy General Manager Asst General Manager Senior Manage r Asst Engineer/ Asst Engineer / Asst Officer Senior Supervisor Director

Supervisor

Employee
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Group 2. STRATEGY:

Group B

Group

Group D

Group E

The determination of the basic long term objectives and goals of an enterprise and the formulation of plans and the acquisition, allocation and utilization of resources necessary to accomplish these goals. STRATEGIES OF THE COMPANY The strategy of BEML is to satisfy its customers by providing better products and giving service to its customers. To impart the co-operation of the employees by satisfying their social, economical, psychological, needs through suitable welfare programs and benefits. To impart training and development its employees skills and knowledge to the changing technology to improve its productivity, quality. To adopt advance technologies to compete its competitors and to produce the products of expected targets

3. SYSTEM:
System is the formal and the informal procedure including compensation systems, mgmt information system, performance mgmt system and capital allocation systems that govern everyday activity. Identifying, understanding and managing processes as a system contributing to the organizations effectiveness and efficiency in achieving its objectives. The one of the kind of system the company follows is internal control system. Internal control system: The Company has an internal control system designed to provide high degree of assurance regarding optimization and safeguarding of resources, quality and reliability of financial and operational information, compliance with applicable statues and corporate policies. It is the companys endeavor to align all its processes and control with global best practices.An enterprise-wise SAP is implemented. This will accompany by reengineering and simplification of business process to improve agility and customer service. By the end of 2010, your company will have end-to-end SAP platform that will provide a robust foundation to address several emerging business needs.
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4. STYLE: Style is the leadership approach also the way in which the organization
employees present themselves to the outside world to suppliers and customers. In simple words style is a pattern of behavior, which a leader adopts in influencing the behavior in the organization. STYLE OF THE ORGANISATION: It looks towards the employees requirement and provide other additional welfare and safety facilities to improve develop the individual i.e. the employees and also for the development of the company. There are two types style of the company 1. Management style- More a matter of what managers do than what they say; how do a companys managers spend their time? What are they focusing attention on? Symbolism- the creation and maintenance of meaning is a fundamental responsibility of managers. 2. Organizational style- The dominant values and beliefs, and norms, which develop overtime and become relatively enduring features of organizational life.

5. STAFF:
BEML has maintained good staff relation among the employees and also among officers and employees by directing and providing all guidance and inspiration to people to work to carry out their assigned duties and responsibilities. In this way the company achieves its objectives by placing right person for the right jobs for which they are best suited and one supervisor or officer to guide and control the work force. The manpower strength as on 31st march, 2010 stood at 12,052 as against 12,600 of the previous year.

6. SKILLS:
Skills refer to the dominant distinctive capabilities and competencies of the personnel or of the organization as a whole. The distinctive competencies what the company does best, ways of expanding or shifting competencies. In BEML, they didnt make any classification of the skills matrix. They are not following any skill matrix. But they are providing only technical skill to the workers in order to manufacture the quality products and they are also strict adherence to quality. They are
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providing on the job training to workers in BEML. On the job training will be given for a period of one week. TECHNICAL SKILLS The steps in technical skills are as follows:1. BEML has arranged technical specialist to come and teach about technical skills. The specialist in technical field will come and teach about the technical aspects. 2. They will make certain designs and teach them to manufacture efficiently by reducing the cost of production. They will teach them to manufacture the products by using them different raw materials in order to reduce the cost of manufacture. 3. BEML will train the workers frequently to update the knowledge of the workers to learn the latest technology.

7. SHARED VALUES:
Shared values are what engender trust. Values are the identity by which a company is known throughout the business arena. These values must be explicitly stated as both corporate objectives and individual values. BEML LIMITED shares a common way of understanding among the companies. RESPECT HUMANITY: Improving quality reducing scrap, reducing cost and improving productivity is one way to do creative work, which will benefit the society consisting of The consumer The Employee The share holder The supplier

Through these thoughts and work, BEML LIMITED is respecting humanity. The objective of any company cannot be achieved if it does not respect human being, without co-operation endeavor. TOTAL QUALITY MANAGEMENT 1. Strive continuously for a better product quality through technological Improvements and product up gradation to cater to ever changing customer needs. 2. Achieve operation excellence through waste elimination and value engineering efforts.

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4. SWOT ANALYSIS OF BEML

STRENGTHS
1. Wide integrated marketing network and product range. 2. Adequate manufacturing facilities with ISO 9001:2008 certification. 3. One of the biggest R&D center in earth moving industry itself. 4. Fairly good industrial relation. 5. Good creditability in money market. 6. Extension service management is highly effective. 7. Customer Satisfaction.

WEAKNESS
1. Keeping pace with technology changes. 2. Single customer profiled for certain segments and concentrated dependence on large customers for off-take of certain products.

OPPORTUNITIES
1. Tie-up / collaboration with reputed concerns for technology enabling imbibing latest technology. 2. Strengthening the R&D base of the company. 3. Global Sourcing. 4. Widening the market base for the product. 5. Continuous cost reduction measures. 6. Thrust on indigenization and product upgrades. 7. Foraying into contract mining and trading activities. 8. Strengthening the long term business relationship with reputed customers.

THREATS
1. Entry of Multinational Companies. 2. Liberalization policy of Government of India - Intense competition building in the Earth moving equipment, defence equipment, Metro coaches for a limited market with opening of the economy coupled with liberalization of import with lower levies.
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3. Increased competition in mining segment due to entry of MNCs to Indian market.

Business Challenges into current scenario

BEML with such large service chain network servicing around 180,000 spare parts managing the service levels with minimization of cost becomes a challenge. Added to this BEML has to meet customer SLA so that downtime of equipments are minimal and customers can renew AMC as well. Forecasting demand for spare parts is a complex task not only because of the large number of SKUs but also because the nature of demand. Some products are new in the service chain network and some are in the process of being discontinued but still it has much impact in the business revenue and profitability thereon. The demand for some of the spare parts is smooth whereas it is intermittent for others. BEML has SKUs with a mixed smooth and an intermittent demand. BEML is facing business critical challenges around: . Inappropriate levels of accuracy in spare parts forecasts. Imbalances in the inventory impacting the inventory turnover ratio. Low customer service levels. Low spares profitability

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5. ANALYSIS OF FINANCIAL STATEMENTS

Ratio analysis of the company
RATIO ANALYSIS: is a tool for analysis and interpretation of financial statements. Ratio analysis helps us to analyze the past performance of a company and to make future projections. A ratio is simply one number expressed in terms of another number. Liquidity ratios: 1. Current ratio: it is used to perform the short-term financial analysis. Also known as the working capital ratio, this ratio matches the current assets of the firm to its current liabilities.l current ratio of 2: 1 is considered satisfactory. Current ratio = Current assets Current liabilities Interpretation: The current ratio of the company in the year 2008-09 was 2.29 times. This year it has gone up to 2.77. This shows that company is highly liquid and good for future. Leverage ratio: 1.Debt equity ratio: it is used to measure the relationship between long term debts and shareholders funds. The ideal debt equity ratio of 1:1 is generally accepted. This ratio is calculated as follows: Debt equity ratio = Long term debts Share holders fund Debt equity ratio = 0.44:1 in March 2010 Interpretation: This ratio is calculated to measure the relative claims of outsiders against the firms assets. The ratio was 0.29:1 in the year 2008-09and 0.44: 1 in the year 2009-10.This indicates that there is a higher claim of creditors. Profitability ratio: Gross operating profit ratio: This ratio expresses the relationship between gross profits and sales. It is calculated as follows : Gross operating profit ratio = Gross operating profit x 100 Net sales Gross operating profit ratio = 11.24% in March 2010

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Interpretation: . The rate of this year is 11.24% compared to the last year 2009 where the rate is 13.49%. As the rate is going on decreasing. This is the indication of poor results. 1. Net operating profit ratio: This is the ratio of net operating profits to net sales. Net operating profit is the gross profit minus all operating expenses where as net sales is total sales minus sales return. This is ratio is calculated as follows: Net operating profit ratio = Net operating profit x 100 Net sales Net operating profit ratio = 7.63% in March 2010 Interpretation: This ratio indicates the quantum of surplus earned by the firm. The ratio was 9.36% in the year 2008-09 and 7.63%in the year 2007-2008. This indicates that the profitability is decreases and the company is not doing well. Turn over ratio: 1.Inventory turn over ratio: This ratio establishes the relationship between the cost of goods sold during a given period and the average amount of stock carried during the period. This ratio is calculated as follows: Inventory turnover ratio = Cost of goods sold Average stock Inventory turnover ratio = 2.40 times in March 2010 Interpretation: This ratio indicates the how efficiently the firm utilizes its inventory to generate income. The ratio was 1.87:1 in the year 2008-09 and 2.40:1 in the year 2009-10. This shows that, the inventory is used efficiently. 1.Fixed assets turnover ratio: This ratio indicates the efficiency with which the firm is utilizing its investment in fixed assets such as plant and machinery, land and building etc. Fixed assets turnover ratio= Sales/ Cost of sales Net fixed assets Fixed assets turnover ratio = 3.58 times in March 2010 Interpretation: This ratio measures the efficiency of the assets used. The ratio was 3.77: 1 in the year 2008-09 and 3.58: 1 in the year 2007-2008. This indicates that the fixed assets are not effectively used.
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6. LEARNING EXPERIENCE
Beml ltd is a PSU which has been functioning for more than 46 years till date it was a great opportunity to do my project work in such an establishment. In the initial period of project work got the corporate exposure of seeing through the functions of different production process ranging from dozers to excavators, as Since being in the personnel dept got the great exposure in terms of seeing how the personnel dept is functioning be it from the induction of an employee, retention and finally to the termination. Got to see the HRD roles and responsibility in close since being in the personnel department.
Interaction with HR officers, managers, external guide gave an immense knowledge

with regard to how the HR concepts are being implemented and practiced on a routine basis. It provided an opportunity to know about the HR policies of the organization and its implementation. It gave information of how to have a good interpersonal relationship with the subordinates.. It gave the information as how to resolve the grievance. It gave an insight about the critical complexity in routine activities that are involved in production process. Theoretical HR concepts being implemented and practiced on a routine basis was a great opportunity to learn and understand. Deadlines, commitment to deliver, synergy among the team members, positive attitude were key qualities observed the team members. Open-house sessions, professional meetings ,stress releasing activities conducted in various departments etc., were a glimpse of professional organization.

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a. General Introduction
Human Resource management:
Human resource is of paramount importance for the success of any organization. It is a source and aid. Human resource in an organization helps in achieving its goals. Human resource management is concerned with the human being in an organization. It reflect a new outlook which views organization manpower as its resource is a total knowledge, abilities, skills and talent and aptitude of an organization workforce. The values, ethics, beliefs of the individual working are an organization also forms a part of human resource. The resourcefulness of various categories of people and other people available to the organization can be treated as human resource. In the present complex environment no business or organization can exist and grow without human resource has become the focus of attention of every progressive organization. Human resource management may be defined as policies, practices and programmes designed to maximum both personal and organizational goals. Its a process by which the people and organization are bound together in such a way that both of them are able to achieve their objectives. Functions: 1) Managerial Function: a) Planning: It is a pre-determined course of action. Planning pertains of formulating strategies of personal programmes and change in advance that will contribute to the organizational goals. b) Organizing: An organization is a means to an end. It is essential carry out the determined course of action. c) Directing: The next logical function after completing planning and organizing is the execution of the plan. The willing and effective co-operation of employees for the attainment of organizational goals is possible through proper directing.

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d) Controlling: After planning, organizing and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and direction of an organization. Controlling is also involves checking, verifying and Comparing of the actual with the plans, identification of deviation if any and correcting of identified deviation. 2) Operative function:a) Employment: It is first operative function of human resource management. Employment concerned with securing and employing the people possessing the required kind and level of human resource necessary to achieve the organizational goals. b) Human resources development: It is process of improving, molding and changing the skills, values, commitment etc. based on present and future job and organizational requirement. c) Compensation: It is the process of providing adequate, equitable and air remuneration to the employees. It includes the job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures etc. d) Human relations: Practicing various human resources policies and programmes like employment development and compensation and interaction among the employees create a sense of relationship between individual worker and management, among workers and trade union and management. It is the process of interaction among human beings. Human relations is an area of management in integrating people into work situation in a way that motivates them to work together productively, co-operatively and with economic, physiological and social satisfaction. It includes: Understanding and applying the models of perception, personality, learning, intra and inter personal relations, intra and inter group relations. Motivating the employees. Boosting employee morale.
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Developing the communication skills. Developing the leadership skills. Redressing employee grievances properly and in time by means of a well formulated grievance procedure.

I Statement of the problem

ROLE OF HR IN RETENTION MANAGEMENT At BEML LIMITED, KGF COMPLEX BEML LIMITED is a public sector unit started in 1964 with more than 4500 employees currently working at kgf complex alone, a study was conducted with special reference to EM DIVISION, TECHNOLOGY DIVISION, R&D. Employee Retention is the toughest assignment to be done, with the increasing demands due to high quality life style. Hence how the HR DEPARTMENT is functioning in retaining the employees at BEML LIMITED is determined

II Objectives of the study

To know how the Retention Management is carried out at BEML LIMITED To know the policies that is being followed by BEML LIMITED in order to Retain Employees To know the attrition rate and what are the reasons for it To know about o Induction and orientation program o Training and Development o Remuneration System o Roles and Responsibilities assigned to employee o Welfare Benefits and grievance handling o Performance Management System o Work environment and duration of work o Mentoring and counseling

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III Scope of the Study

Retention Management helps in reducing the attrition, it gives the insight about how to retain the employees by previous experience of employee turnover, here the study is with reference to EMDIVISION, TECHNOLOGY, R & D. The study can further be conducted with regard to entire kgf complex, thereby getting an better insight about how to retain the employees. on the whole. Like Bangalore complex, mysore complex, pallakad complex.

IV RESEARCH METHODOLOGY
Problem definition ROLE OF HR IN RETENTION MANAGEMENT at BEML limited, kgf complex Sampling design Sample unit 60 samples were taken for study from EMDIVISION, TECHNOLOGY,R & D. 40 samples were taken from grade I to grade iv 15 samples were taken from employee category Group A to S4 5 samples were taken from grade v and above Method of drawing the sample Simple random sampling: this sampling technique is used because of the population size is high as 3514 it was difficult to take up other sampling technique, hence simple random sampling with sample size of 60 was taken. Data analysis was done using SPSS statistical tool with descriptive statistical analysis method Data collection method Questionnaire method Interview method

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v) Limitations of the Study

The study was conducted only with reference to EMDIVISION,TECHNOLOGY DIVISION,R & D DIVISION .excluding other divisions of kgf complex, Bangalore, mysore and pallakad. The duration was confined only for two months and it was for academic purpose and the objective was limited only in retention management Sample size was 60 out of the total population of 3514 in EM division, technology division, R &D division The result of the study could vary if it would have been conducted for entire population at beml limited Questionnaire tool was used for data collection in which biased, manipulated and Incomplete replies can be possible sampling error was not identified due to the method of data collection adopted Procedures found for all the study was tentative

b. ANALYSIS AND INTERPRETATION

34

1.How is the induction and orientation program

Table:1 age of the respondents * How is the induction and orientation program

Cross tabulation
How is the induction and orientation programme Below Average age of the respondents Below 30 31-40 years 40-50 years Total In % 0 0 4 4 6.66% Average 0 2 6 8 13.34% Good 26 13 0 39 65% Excellent 9 0 0 9 15% Total 35 15 10 60 100%

Analysis The analysis of the above cross tabulation reveals that 9 (15%) of the respondents feel that the induction and orientation program conducted at beml limited is excellent, 39 (65%) feel it is good,8 (13.34%) feel it is average,4 (6.66%) feel it is below average.

Graph 1

35

Interpretation Induction and orientation program is carried out effectively at beml, most of the employees are satisfied with the way it is conducted.it is because the system of introducing an new employee is very effective, there is a planned way out of carrying induction and orientation program.

2. Are you satisfied with the training program conducted and do you feel it is necessary to you
36

Table 2: age of the respondents * Are you satisfied with the training program conducted and do you feel it is necessary to you

Cross tabulation

Are you satisfied with the training program conducted and do you feel it is necessary to you Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 15 3 53 88.33% No 0 0 7 7 11.67% Total 35 15 10 60 100%

Analysis The analysis of the above cross tabulation reveals that 53 (88.33% )of the respondents feel they are satisfied with the training program conducted and feel it is necessary,7 (11.67%) of the respondents are not satisfied with it

Graph : 2

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Interpretation Most of the respondents feel that they are satisfied with training conducted and feel it is necessary to them, this is due to organized way of conducting training program and the conducted is need based and every employee undergoes training on some specific requirement.

3. Is the training given beneficial to you and is it Updated to the changing trend and technology

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Table : 3 age of the respondents * Is the training given beneficial to you and is it Updated to the
changing trend and technology

Crosstabulation

Is the training given beneficial to you and is it Updated to the changing trend and technology Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 8 0 43 71.66 No 0 7 10 17 28.34 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 43 (71.66%) of the respondents feel training given to them is beneficial and it is updated to the changing trend and technology and 17 (28.34%) it is not beneficial to them and it is not updated to the changing trend and technology

Graph : 3

39

Interpretation Most of the respondents feel that training given to them is beneficial and is updated to the changing trend and technology,the training program is beneficial to employees since it is need based and it is updated with program like six sigma.

4. Is the roles and responsibility assigned to you being clearly described and specified
40

Table: 4 age of the respondents * Is the roles and responsibility assigned to you being clearly described and specified

Crosstabulation

Is the roles and responsibility assigned to you being clearly described and specified Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 2 0 37 61.66 No 0 13 10 23 38.34 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 37 (61.66%) of the respondents feel that roles and responsibilities assigned to them are clearly described and specified,23 (38.34%) of them feel that roles and responsibilities are not clearly described and specified.

Graph: 4

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Interpretation Most of the respondents feel that roles and responsibilities assigned to them are clearly described and specified, they are happy with roles and responsibilities given to them this is because Beml follows a systematic way of assigning the job based on their education and skills they possess which are required for performing that particular job

5.Are you satisfied with the job description given to you.

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Table: 5 age of the respondents * Are you satisfied with the job description given to you.

Crosstabulation

Are you satisfied with the job description given to you. Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 6 0 41 68.33 No 0 9 10 19 31.67% Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 41 (68.33%) of respondents are happy with the job description given to them, 19 (31.67%) are not happy with the job description given to them.

Graph: 5

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Interpretation Most of the respondents are happy with the job description given to them, they are excited to with such job description, this is because the policy of Beml is to identify the skills of the employee and train them in that specific area, so they become efficient and the employees are happy with the job description

6.How is the remuneration system at Beml

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Table: 6 age of the respondents * How is the remuneration system at Beml

Crosstabulation
How is the remuneration system at Beml Below Average age of the respondents Below 30 31-40 years 40-50 years Total In % 0 0 4 4 6.66 Average 1 15 6 22 36.66 Good 28 0 0 28 46.66 Excellent 6 0 0 6 10 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 6 (10%) of the respondents feel remuneration system at beml is excellent,28 (46.66%) feel it is good,22 (36.66%) feel it is average and 4 (6.66%) feel it is below average

Graph: 6
45

Interpretation Most of the respondents are happy with the remuneration system at beml .and they are excited to have a good remuneration package ,this is because the system is upto the standards of other psu ,hence the overall package given to employees is good and they are satisfied

7.Is the remuneration system here better than other PSUs

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Table: 7 age of the respondents * Is the remuneration system here better than other PSUs

Cross tabulation

Is the remuneration system here better than other PSUs Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 16 0 0 16 26.66 No 19 15 10 44 73.34 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 16 (26.66%) of the respondents feel that the remuneration is not better than other psus, 44 (73.34%) feel the it is better than other PSUs

Graph: 7

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Interpretation Most of the respondents feel that remuneration system of beml is not better than other psus, and they are looking for better remuneration. this is due to the fact that other psu total package paid is higher than Beml, but its trying to increase to be competitive with other psu.

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8.What do you feel about the Welfare benefits given to you

Table: 8 age of the respondents * What do you feel about the Welfare benefits given to you

Crosstabulation
What do you feel about the Welfare benefits given to you Below Average age of the respondents Below 30 31-40 years 40-50 years Total In % 0 0 6 6 10 Average 3 15 4 22 36.66 Good 28 0 0 28 46.66 Excellent 4 0 0 4 6.66 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 4 (6.66%) of the respondents feel that welfare benefits given to them are excellent,28 (46.66%) feel it is good, 22 (36.66%) feel it is average, 6 (10%) feel it is below average

Graph: 8
49

Interpretation Majority of the respondents are happy with the welfare benefits given to them, and they this is what which makes them excited to work for Beml, this is because the benefits given to employees covers up all the requirements of an employee.

9.Are you satisfied with the way grievance is handled at Beml

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Table: 9 age of the respondents * Are you satisfied with the way grievance is handled at Beml

Cross tabulation

Are you satisfied with the way grievance is handled at Beml Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 1 0 36 60 No 0 14 10 24 40 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 36 (60%) of the respondents are satisfied with the way the grievance is handled, 24 (40%) of them feel they are not satisfied

Graph: 9
51

Interpretation Majority of them are satisfied with the way the grievance is handled ,and they are happy with the grievance handling procedure, this is because the Beml follows the three stage procedure to solve the grievance, which is very effective in giving solutions the problem.

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10.Is the role of Hr in handling Grievance and giving feedback upto the standards of other PSUs
Table: 10 age of the respondents * Is the role of Hr in handling Grievance and giving feedback upto the standards of other PSUs

Cross tabulation

Is the role of Hr in handling Grievance and giving feedback upto the standards of other PSUs Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 29 0 0 29 48.33 No 6 15 10 31 51.67 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 29 (48.33%) of the respondents are not happy with the role of hr in handling the grievance and giving feedback which they feel feedback is not upto the standards of other psus. 31 (51.67%) feel it is good

Graph: 10

53

Interpretation Majority of them are not satisfied with the role played by the hr in handling grievance and the feedback given is not upto the standards of other psus,this is because there is no proper communication by the hr department in solving the grievance.this is mainly due to the gap of communication which lies between hr department and other departments.

11.Are you satisfied with the working conditions and safety measures

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Table: 11 age of the respondents * Are you satisfied with the working conditions and safety measures

Crosstabulation

Are you satisfied with the working conditions and safety measures Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 7 0 42 70 No 0 8 10 18 30 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 42 (70%) of the respondents are happy with the working conditions and safety measures, 18 (30%) of them are not happy.

Graph: 11

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Interpretation Most of them are happy with the working conditions and safety measures given to them, they are excited to have such an work environment and safety measures.this is because Beml follows the guildelines of factories act and it covers all the safety measures required for the workers.

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12.How is the Leave packages[sick leave, Casual Leave, Earned leave]

Table: 12 age of the respondents * how is the Leave packages[sick leave, Casual Leave, Earned leave]

Crosstabulation

how is the Leave packages[sick leave, Casual Leave, Earned leave] Excellent age of the respondents Below 30 31-40 years 40-50 years Total In % 8 0 0 8 13.33 Good 27 4 0 31 51.66 Average 0 11 8 19 31.66 Below Average 0 0 2 2 3.33 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 8 (13.33%) of the respondents are feel that leave package is excellent, 31 (51.66%) feel it is good,19 (31.66%) feel it is average, 2 (3.33%) feel it is below average

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Graph: 12

Interpretation Majority of the respondents are satisfied with the leave package, they feel it has a good balance to spend time with family and work when needed. because Beml has a good leave system of casual leave,sick leave,earned leave,which is more than 42 days in a calendar year.

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13.Is your suggestions being considered [suggestion Box]

Table: 13 age of the respondents * Is your suggestions being considered [suggestion Box]

Crosstabulation

Is your suggestions being considered [suggestion Box] Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 4 0 39 65 No 0 11 10 21 35 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 39 (65%) of the respondents feel that there suggestions are considered, 21 (35%) of the respondents feel it is not considered.

Graph: 13
59

Interpretation Most of the respondents feel that there suggestions are being heard through suggestion box, they feel that they have a belonging like being in a family when views are put forth.this is because the suggestion are considered by the higher executives and there is a proper suggestion box which is been taken care.

14.Are you satisfied with the incentives given to you

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Table: 14 age of the respondents * Are you satisfied with the incentives given to you

Crosstabulation

Are you satisfied with the incentives given to you Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 27 0 0 27 45 No 8 15 10 33 55 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 27 (45%) of the respondents are not satisfied with the incentives given to them, 33 (55%) are happy with the incentives given to them

Graph: 14

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Interpretation Majority of the respondents are not happy with the incentives given to them and they feel there is a betterment needed in the incentive scheme,this is because the difference involved in giving incentives,biased opinions among the boss for different employee.

15. Is there a biased decision or favoritism when it comes to giving promotion

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Table: 15 age of the respondents * Is there a biased decision or favoritism when it comes to giving promotion

Crosstabulation

Is there a biased decision or favoritism when it comes to giving promotion Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 50 30 0 0 30 50 No 5 15 10 30 Total 35 15 10 60

Analysis The analysis of the above cross tabulation reveals that 30 (50%) of the respondents feel that there is a favoritism/biased decision when it comes to promotion, 30 (50%) feel its not there

Graph: 15

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Interpretation Respondents feel that there is a biased decision when it comes to giving promotion, favoritism is there, thereby preferred persons get the promotions,this is because human error is involved when taking decisions for promotions,there will a biased decision when it comes to promotion.

16. Is your performance been recognized and if so have you been suitably rewarded

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Table: 16 age of the respondents * Is your performance been recognized and if so have you been suitably rewarded

Cross tabulation

Is your performance been recognized and if so have you been suitably rewarded Yes age of the respondents Below 30 31-40 years 40-50 years Total In% 35 1 0 36 60 No 0 14 10 24 40 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 36 (60%) of the respondents feel that there performance has been considered and they feel they were suitably rewarded. 24 (40%) feel no.

Graph: 16

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Interpretation Majority of the respondents feel that there performance was suitably being recognized and have been suitably rewarded. it encourages workers management system. to outperform by putting more effort,because Beml follows a good reward system by maintaining a good performance

17. How is the performance management system

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Table: 17age of the respondents * How is the performance management system

Crosstabulation
How is the performance management system Below Average age of the respondents Below 30 31-40 years 40-50 years Total In % 0 0 5 5 8.33 Average 3 15 5 23 38.33 Good 28 0 0 28 46.66 Excellent 4 0 0 4 6.66 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 4 (6.66%) of the respondents feel that performance management system is excellent,28 (46.66%) feel that it is good, 23 (38.33%) feel that it is average, 5 (8.33%) feel that it is below average

Graph: 17
67

Interpretation Majority of the respondents feel that performance management system is good,and it is able to recognize good and bad performances,because good performances have been recognized and suitably rewarded.

18. Are you satisfied with CDP(for employees/executives) and non CDP for senior executives.
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Table: 18 age of the respondents * Are you satisfied with CDP(for employees/executives) and non CDP for senior executives.

Crosstabulation

Are you satisfied with CDP(for employees/executives) and non CDP for senior executives. Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 4 0 39 65 No 0 11 10 21 35 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 39 (65%) of the respondents are satisfied with CDP and non CDP, 21 (35%) of them are not satisfied.

Graph: 18

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Interpretation Majority of them are satisfied with the CDP and non CDP for promotions and career development, here it has a very stable system of satisfying as one gets experience because this program takes care for good career development of the employees and executives

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19. what do you think about the transfers carried out

Table: 19 age of the respondents * what do you think about the transfers carried out

Crosstabulation
what do you think about the transfers carried out Below Average age of the respondents Below 30 31-40 years 40-50 years Total In % 0 4 10 14 23.33 Average 17 11 0 28 46.66 Good 17 0 0 17 28.33 Excellent 1 0 0 1 1.66 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 1 (1.66%) of respondents feel that transfers carried out are excellent, 17 (28.33%) feel it is good, 28 (46.66%) feel it is average, 14(23.33%) feel it is below average

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Graph: 19

Interpretation Majority of them are happy with the transfers carried out ,and they feel it is necessary to avoid boredom and release monotonous job,this is because there is a transparent way of handling the job rotation and transfer to reduce boredom

20. How is your interpersonal relationship with your reporting authority/boss

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Table: 20 age of the respondents * How is your interpersonal relationship with your reporting authority/boss

Crosstabulation
How is your interpersonal relationship with your reporting authority/boss Below Average age of the respondents Below 30 31-40 years 40-50 years Total In % 0 0 4 4 6.66 Average 0 1 6 7 11.66 Good 22 14 0 36 60 Excellent 13 0 0 13 21.66 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 13 (21.66%) of the respondents feel that there interpersonal relationship with the reporting authority/boss is excellent, 36 (60%) of them it is good, 7 (11.66%) of them feel it is average, 4 (6.66%) of them it is below average

Graph: 20

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Interpretation Most of the respondents have a good interpersonal relationship with the boss/reporting authority, these shows the good coordination in the work for effective output.this is because a lot of training has been given on soft skills to improve interpersonal relationship with higher executives

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21. Is it satisfactory Exgratia payment (for employees) and PRP(for executives)

Table: 21 age of the respondents * Is it satisfactory Exgratia payment (for employees) and PRP(for executives)

Crosstabulation

Is it satisfactory Exgratia payment (for employees) and PRP(for executives) Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 20 0 0 20 33.33 No 15 15 10 40 66.67 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 20 (33.33%) of the respondents are satisfied with the exgratia payment/PRP,and 40 (66.67%) are not happy.

Graph: 21
75

Interpretation Most of the respondents are not happy with the exgratia payment/PRP given,they are looking better emoluments for they extra effort.this enables and motivates employees to work harder for more emoluments

22. Are you satisfied with the enquires conducted with regard to disciplinary action
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Table: 22 age of the respondents * Are you satisfied with the enquires conducted with regard to disciplinary action

Crosstabulation

Are you satisfied with the enquires conducted with regard to disciplinary action Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 5 0 40 66.66 No 0 10 10 20 33.34 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 40 (66.66%) of the respondents are satisfied with the enquiries conducted with regard to disciplinary action, 20 (33.34%) of the respondents are not satisfied

Graph: 22
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Interpretation Most of the respondents are satisfied with the enquires conducted with regard to displinary action. it shows proper functioning of the disciplinary cell,this is because Beml is efficient in carrying out enquires with regard to not following good discipline

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23. Is Mentoring and Counseling carried out effectively and does it benefit you
Table: 23 age of the respondents * Is Mentoring and Counseling carried out effectively and does it benefit you

Crosstabulation

Is Mentoring and Counseling carried out effectively and does it benefit you Yes age of the respondents Below 30 31-40 years 40-50 years Total In % 35 5 0 40 66.66 No 0 10 10 20 33.34 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 40 (66.66%) of the respondents feel that mentoring and counseling are carried out effectively and does benefit them. 21 (33.34%) of them feel no.

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Graph: 23

Interpretation Most of the respondents feel that mentoring and counseling is effectively carried out effectively and benefit them on a overall improvement in terms of performing better. this is because more emphasis is given on mentoring to reduce boredom and increase productivity and employee to be motivated to work in the organisation

24. How do you feel about the duration of working hours and work extracted from you
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Table: 24 age of the respondents * How do you feel about the duration of working hours and work extracted from you

Crosstabulation
How do you feel about the duration of working hours and work extracted from you Below Average age of the respondents Below 30 31-40 years 40-50 years Total In % 0 0 5 5 8.34 Average 0 10 5 15 25 Good 26 5 0 31 51.66 Excellent 9 0 0 9 15 Total 35 15 10 60 100

Analysis The analysis of the above cross tabulation reveals that 9 (15%) of the respondents feel that the work extracted from them and Duration of working hours are excellent, 31 (51.66%) of them it is good, 15 (25%) of them feel it is average, 5 (8.34%) of them it is below average

Graph: 24

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Interpretation Most of the respondents are happy with the work extracted from them and the duration of working hours, it shows flexible hours and respondents are happy working for beml limited. Stress levels and work pressure.

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FINDINGS

Retention of employees is really high, with an attrition as low as 15 from 1-1-2010 to 28-2-2011 Most Employees are satisfied with the benefits given to them Most Employees are satisfied with the training conducted to them More Employees are happy with the roles and responsibility assigned to them Some of the Employees are expecting for better remuneration Many Employees expect for the better functioning of HR dept in handling grievance Few Employees are looking out for better incentives Most Employees are happy with the performance management system Most Employees are satisfied with the working conditions and working hours Most Employees are satisfied with the mentoring and counseling program

Observation
Employees are happy with the HR policies because the policies give more emphasis on

employee growth
Training is conducted effectively because training program is conducted by experts Job security is high because of good training given to employees in turn which

increases their work efficiency

Rules and Regulation are high, More formal rules are been implemented Suggestions are Considered through suggestion box which is closely monitored by

higher authority
Latest technology is being implemented to be competitive in the market

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Suggestions
More Recognition is needed for best performances
There is a betterment needed in the Remuneration system with regard to overall

emoluments that an employee receives.

Better incentive system is to be implemented, more parameter

is to be considered in

performance management system HR Dept has to have a better communication in handling grievance
formal rules and regulations are high, a little flexibility is to be needed

Employee suggestions is to be considered and if found suitable has to be implemented Policy of Employee Confirmation after 4years has to be reduced to 2years
More manpower is needed in the administration dept to reduce the work load and to

reduce the errors.

c. Conclusions
As per the learning experience at Beml limited, retention of employees is high, with

high level of employee satisfaction.

Remuneration system at beml is good but there is still more scope for improvement

needed when compared to other psus

Better handling of grievance is to be needed, management should create an

environment where employee should feel free in expressing their grievance

There is a need for improvement of performance management system to monitor the

performances effectively
Beml limited has a good HR policy which is upto the standard of others psus

finally my best wishes to beml limited in specific to kgf complex and all the best for the future and expect for greater growth prospects for Beml limited.

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Recommendations
More workforce is needed in personnel dept to reduce workload of staff members Improvement should be made in remuneration system focusing mainly on incentive Recognisition for Best performance, outstanding performer should be highly rewarded Grievance to be handled more effectively, superiors handling grievance should be

provided with training

Mentoring program is needed there by reducing the errors at work place

Suggestion from employees if suitable has to be considered and need to be implemented

More Empowerment to be given to employees to make them more responsible at

workplace

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