atlas appraisal project

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A

PROJECT REPORT

ON

BUILDING UP A POTENTIAL

APPRAISAL SYSTEM FOR

ATLAS CYCLE

As a partial fulfillment for the award of BBA degree

under C.C.S. UNIVERSITY session 2004-2007.

SUBMITTED TO SUBMITTED BY

Mr. VIRENDER DAHIYA SIR MANOJKUMAR SINGH

9198572

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

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CERTIFICATE FROM THE SUPERVISIOR

To WHOM IT MAY CONCERN

This is to certify that Mr. MANOJ KUMAR

SINGH Roll No. 9198572 of BBA IV Sem. is a bonafide regular

student of this Institute for the session 2004-2007.

He has completed the project report titled BUILDING UP A

POTENTIAL APPRASIAL SYSTEM FOR ATLAS CYCLE

under my supervision, as a part of partial fulfillment for the award

of BBA degree under C.C.S University.

I find his project report is up to the standard and original one.

Dt:- (Project Supervisor)

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PREFACE

Technical study is incomplete without practical is knowledge. Now a days theorywithout practical is of little use. No doubt theory provides the fundamental stone for the

guidance of practice but practice examine the element of the truth lying in the theory.

Therefore, a stand co-ordination of theory and practice is very essential to make a BBAperfect.

To achieve this propose, participants of BBA, IMS Noida are required as a practical

fulfillment of there course, to do a project work in there SummerTraining program

I joined the Atlas cycle Group for the summer training. This project report is prepared

during the seven week training at Atlas cycle Group (haryana) Ltd. Shibabad as a

participate of BBA we have studied that Human Resource Development is the businessfunction that identifies current unfulfilled needs and wants, designs and measures their

magnitude, determine the target Human Development program, the organization can best

and serve and decides on appropriate facilities, services and programs to serve them. HR

management is the analysis, planning implementation, on an control of programs,designed to create, build and maintains beneficial exchange add relationship with in

organization for the purpose of achieving the organization objectives. Thus HR processconsists of analyzing HR opportunities, researching and selecting target relation,developing employment strategies, planning HR tactics, and implementing and

controlling the HR efforts. I decided to choose my topic, which covers all. As a result, I

selected the topic Potential Appraisal activities of Atlas cycle Group shibabad

It has been a very rich experience. Competition and new development are changing atunimaginable speed. Keeping oneself in the HR Department would require true

managerial skills these subjects are to vast varied and dynamic. My project is a humble

effort of the application of these studies.

During the seven weeks of summer training in Atlas cycle Group shibabad. I with the

help of the staff of Atlas Cycle Group prepared this project report towards partialfulfillment of the award of the degree of bachelor of business administration to gain in

experience and enhance my own knowledge.

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ACKNOWLEDGEMENT

It is always said that the work is accomplished only when it is done under

full and proper guidance of intelligent people for me it was very difficult to

complete my first ever real life project without the help of all those people

who supported me.

I am thankful to Mr. KAPIL SEHGAL for guiding me the project work andin gaining knowledge and excel in growing his field. I also like to thanks all

faculty members and support to bring this report to a successful competition.

I sincerely wish to acknowledge a deep sense of gratitude for valuable and

magnanimous guidance and generous assistance extended to me by who

gave me this unique opportunity to complete my project work in this

esteemed organization.

I also extend my hurtful thanks to other staff members for their

wholehearted cooperation and valuable help offered to me during my

summer training program.

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CONTENT

Introduction

Statement of the Problem

Objective of the Study.

Scope and Importance of Study...

Research Methology

Theoretical Concept.

Introduction to Organization

Company Status Regarding

Objective of the Study.

Data Presentation and Analysis.

Finding the Studies

Recommendation and Suggestion.

Conclusion.

Reference / Bibliography

Annexure

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INTRODUCTION OF ATLAS CYCLE

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Atlas Cycle NCD gets A plus from Crisil

THE CREDIT Rating Information Services of India (Crisil) has A plus (single A plus)

rating to the Rs. 16.50 crore non-convertible debenture (NCD) issue of Atlas Cycle

(Haryana).Atlas, formerly Atlas Cycle Industries, has been placed under rating watch with

developing implications.

The rating watch is based on Crisil's opinion that ongoing developments in the company

regarding ownership and management between various members of the promoter

family and the possible re-organization of the operations of Atlas into three

subsidiaries could have a material impact on the credit risk profile of the outstanding

debt instrument.

Atlas has initiated a restructuring exercise in 1999-2000 whereby three new wholly

owned subsidiaries were created, each being named after the respective cyclemanufacturing locations namely. Atlas Cycles (Sonepat), Atlas Cycles (Sahibabad)

and Atlas Cycle (Malapur). Although the originally stated intention of setting up

these subsidiaries was to treat them as profit centers, current developments indicate

the likelihood of a distribution of assets and liabilities into these companies.

Crisil's rating is based on the uncertainty associated with the ownership of the rated debt

as well as the credit profile of the new holder of the said instrument. The rating

action also takes into account the company's satisfactory operating performance for

2000-01.

Crisil is in dialogue with the management of Atlas to review the implications of the

various options being contemplated by the management.

Corporate Bureau

Company Name : Atlas Cycle Haryana Ltd.

Firm Tupe : International public company

Location : India

Web : http://www.atlascyclesonepat.com

Email: [email protected]

Year Founded: 1950Primary SIC: Motorcycle, Bicycles And Parts

Primary NAICS: Motorcycle, and Parts Manufacturing

Description: Manufacturing: Manufacture and distribution of bicycles and motorcycle.ISO 9002 certified.

HISTORY OF ATLAS CYCLES

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Atlas group was established in 1950 and production started in 1952 with the strength of

only 4 workers. The name atlas cycles industries Ltd was given in year 151 as a modest

saddle manufacturing industry where now it ranks amongst the three largest cyclesmanufacturers in the world.

Atlas cycles industries ltd. commence manufacturing of bicycle saddles in 1951 andproduced its first batch of complete cycles in 1952 the first lot of 12624 bicycles rolled

out by company in 1952. Soon thereafter the factory sprang up on grand scale and

became the undisputed leader in the trade.

The most remarkable point the about atlas is that it started functioning without any

foreign collaboration.

Today atlas is second largest bicycle company in the country producing over 3 millionbicycles in a year.

Atlas cycles has three units in operation : at Sonepat in Haryana, Sahibabad in Uttar

Pradesh and Malapur in Madhya Pradesh catering to the demand of whole India and forexport atlas cycles Has not only been exporting cycles to over 40 countries but also

expertise, skill technical know how atlas has been involved in setting up large cycleplants in countries like Tanzania, Iran, Zambia and others and has annual turnover

exceeding 3.5 billions with a workforce of over 5000 technicians

Late Shri Jankidas was the founded of the company

Late Shri Jankidas Kapur has three sons-late Bishamber Das Kapur, Jai Dev Kapur late

Jagdish Kapur.

After the death of late Shri Jankidas Kapur his sons started to look after the company at

that time as atlas cycles industries was the biggest cycle manufacturer in India.

Late B. D. Kapur was president of atlas cycle industries (now named as atlas cycles

Haryana) ltd till his death in Aug. 2000, his two younger brothers Jaidev Kapur and late

Jagdish worked as joint presidents.

Late B. D. Kapur has three sons Arun Kapur, Vikram Kapur, Rajiv Kapur

Mr. Jaidev Kapur died before 2 yrs Mr. Jagdish Kapur has two sons Sanjay Kapur and

Salil Kapur also designated as senior vice presidents.

Atlas cycles industries has a equity base of only 3.5 core of which over 50% is controlled

directly or indirectly by the entire Kapur family the company had a turnover of 356 crwith a net profit of 7 during the year ended march 2003.

Atlas cycles industries restructured to face challenges

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The management of atlas cycles industries one of the largest bicycle manufacturer in the

country has been reorganized into separate units with effect from 1 Sept. 2003 the

restructuring process undertaken by board of directors for imparting efficiency in theorganization and to push the growth in the right direction.

The Mother unit has been put under control of Mr. Vikram Kapur the son of late Mr..Bishamber Das Kapur.

The Second unit, Sahibabad under Mr.. Jaidev Kapur whereas the bird unit Malanpur

(map under Salil Kapur) the son of late Mr.. Jagdish Kapur.

Under the reorganized scheme Mr.. Vikram Kapur designated as president, Mr. Rajiv

Kapur as joint President and Mr.. Anged Kapur as vice President of the Mother unit

Mr.. Jaidev Kapur designated as President of Sahibabad and its allied units of Miltoncycles industries.

Mr.. Salil Kapur designated as President of Mainpur unit(Madhya Pradesh)

Mr.. Vikram Kapur looks after working of Mr. Jankidas memorial hospital Sonepat, theJankidas public school Sonepat, a modern hospital at Delhi and ashram at Haridwar

By having the Presidents of the three units as members of one of the other threemanagement committees it is hoped that it would lead to increase in efficiency and better

results over all financial health of the company.

Under the new management structure the group was split into three divisions each

managed by different members of the family and headed by President. The control of the

theremanufacturing units of atlas at Sonepat(Haryana) Malanpur (mp)Sahibabad (up was

spilt between the Kapur brother and their sons with three independent managementcommittees reporting to the atlas board of directors.

Since the profitability of the company has split during the last couple of years the recentrestructuring with independent management committee ensuring coordination,

functioning and cost effectiveness of the units.

Despite that the company is feeling at home with the current structure, system being error

free the plan of restructuring took more than three years to formalize , the operation being

dividend in such a manner that each unit will focus on a specific marketing zone an d

simultaneously work on building atlas market share I these areas.

The company is already claming to be on a roll since it adopted the new management

structure the restructuring has ensured independent functioning of the units which in turnhas speeded up the decision making process. If the Kapur brothers are to be believed

production is better now post restructuring coupled with a spurt in sales both domestic

and reports all three units are gearing up to make a formidable base I their respectivemarketing zone which have been strategically divided so as to reduce the freight cost on

bicycles

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Whole both Sonepat and Sahibabad are expanding capacity by putting up a painting and

rim manufacturing plant with as investment of 8 cr Malanpur Would be investing in

upgrading its raid activities paint plant and work areas.

The company has also ear marked a budget 8 cr for advertising and communication to

add sheen to the brand company has also roped in celebrities like film star Sunil Shettyand tennis player Sania Mirza

Atlas cycles industries main focus today is to ensure that atlas cycles industries remains

ten leading brand in country late Rai Bahadur Janki Kapur 50 yrs back started thecompany but now it is the responsibility of third Generation to take it to unprecedented

heights in domestic as well as export market

Atlas has grown y about 20 % over last year though prices had as adverse impact on the

profitability of the company. The company has started faring well in past months ofindependent functioning.

As per unedited financial results of the company for the financial year 2003 04 profit

before tax plugged further to 4.09 cr from 6.35 cr the total revenue has however increasedto 384.66 cr from 327.9 cr last year net ales have grown to 382.72 cr from 324.17 cr

recorded last fiscal last fiscal they are aiming to increase this to 500 cr by the end ofcurrent financial year

DIVERSIFICATION

To further fuel growth atlas cycles industries is also looking at diversification into auto

ancillary sector and may be steel. As reported the co. plans to setup an auto ancillary unitin collaboration with Japanese auto industry and it plans to inverts 50-100 cr in the

project, likely to take off next year, based in north India.

The unit aims to work backward integration. Mean while for exports atlas cycles

industries plans to explore some new markets like African continent ,unease Europe and

Russia, incidentally co. Also plans to import some cycle components from China thisyear, also looking at importing some plastics like spare parts and brake designs that add

value to our product this year.

Further the company hopes to strengthen its network of over 400 dealers spread across tecountry simultaneously the co. Is gearing to meet the challenges of the future lie rising

input costs of steel an sluggish growth of cycle market.

The co. has recently introduced basic black cycle at reduced price for the mainstream

market called silver line and has also begun to focus on newer segments such as fancy

and kids segment.

Atlas cycles industries has privilege of being the only Indian complete bicycle

manufacturing unit in house r and d unit has been recognized by the department of

scientific and industrial research, min of sc and etch Govt. of India our r and d center is

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well equipped with cad facility prototype making facility latest equipment testing facility

and supported by qualified engineers.

It is the only complete cycle manufacturing unit having such recognition r & d unit isconsistently working for reduced weight finding economical and durable substitute

material reduced fatigue making cycles more light running developing designs on

ergonomics.

Atlas cycles industries r & d concentrates on development of new models of bikes

ranging from kids to mountain bikes, city bikes suspension bikes sports bikes etc. atlascycles industries started its odysseys way back in 1951 and today it is one of the largest

manufacturer of bicycles in the world atlas bicycles are ridden over 50 countries around.

the globe.

Atlas cycles industries Sonepat unit caters to the needs of north east and central Africa,

USA, Latin America, South and central America including Mauritius, West Indies and

Madagascar Island.

Atlas cycles industries are very popular and commonly used in countries of Egypt,

Zambia and Kenya. We are also entering the markets in a big way in Uganda, Tanzania,Sudan, Libya, Malawi, Ethiopia in the African continent and also USA and Latin

America.

Our range of products inside tough roadster modes elegant ladies bikes, rugged mountain

bikes and children bikes which are made to cater to varied destinations with different

geographical, social and climatic conditions putting a challenge to the elating bike

manufacturer in the World we at atlas keep moving ahead with our never ending zealwith technological up gradations and is the first bicycle industry to get ISO 9002 and

9001 accreditation

ISO 9001:2000 CERTIFICATION

Sonepat unit of atlas cycle was earlier certified with ISO 9002:1994 since 1994 which

was subsequently renewed twice in 1997 and 2000. Now the company has bagged ISO

9001:2000 certificate by implementing the latest international quality management

system.

Under the new certification research and development activities of the companies which

is in addition to its manufacturing inspection testing and sales activities deployment ofquality management system has ensured consistency, high quality reliability of our

product for domestic and international market it has ultimately resulted into improvement

of timely availability of quality bicycles in latest models for all age groups at highlycompetitive prices the company ultimately aims to achieve total consume satisfaction by

its implementation.

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DESIGN MANUFACTURE AND QUALITY SYSTEM

The company is one of the biggest manufacturing units producing most of thecomponents under one roof it has got a vast press shop machine shop brazing shop

welding shop heat treatment plant paint shop electroplating plant assembly show spread

over in a campus of 28 aces.

The manufacturing shops are equipped with state of the art machines for production

operated by it trained operators under the supervision of quality engineers the

manufacturing facilities are supported by a modern tool room and a fleet of trainedmaintenance staff for trouble free running research and development department provides

components and tool drawings designed by quality engineers with he support of cad

necessary press tools fixtures jigs special machine spark erosion machinist in tool room

all the tools and gauges pass through tools inspection to ensure its precision andaccuracy.

Department of the company ensure the quality right from the raw materials to finish

product covering various stages like receiving, inspection, in process inspection and final

inspection gauge control cell of quality Assurance ensures timely calibration of allproduction stages and measuring equipment used through out the factory quality.

Assurance has got state of art mechanical laboratory having tensile testing machines of

different ranges up to 10 tons optical profile projector spring testing machine Vickershardness testers Rockwell hardness testers gsm testers bursting strength testers cupping

value testers rubber abrasion testers along with special equipment for handle, pedal fork

frame rim crank etc.

Chemical laboratory of quality Assurance is equipped with paint test apparatus carbon

sulphur tester hull cell apparatus flash point apparatus kinetic viscosity net nickel chromeplating tester micro test for zinc and paint thickness testing UV tester and spray

generation apparatus to provide assistance to receiving inspection pretreatment plant

electroplating plant paint shop etc.

The integration of research and development, tool room manufacturing and quality

Assurance activities has resulted in high and consistent quality level of the company

products enhancing customer satisfaction.

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LABOR RELATIONS

Company has extended complete freedom of association its workman and effective

recognition of their rights to collective bargaining atlas workman have their own electedworkers union registered under government act the union is recognized by the

government and the factory the labor welfare activities are organized by the factory from

time to time which plays important role in establishing as atmosphere of mutual trust andharmony. The company is running smoothly since more than two decades without any

worker unrest.

The company not only believes in abolition of child labor but also propagates thephilosophy to other industries by having relations directly and indirectly. The minimum

age of employment in the factory is 18 years which is the law of the land the corporate

policy does not allow any distinction of any kind like caste color religion, language or

property status in respect of employment and occupation.

All forms of forced labor has been completely eliminated from the philosophy ofcorporate and their exist a total appreciation for each other between management and

employees as a matter of fact company has wishfully employed many, physically

challenged persons who are earning their bread and butter respectfully.

PRODUCT QUALITY

Atlas is the household name for product quality and it is usp atlas has strict quality

systems latest equipments so ensure quality right from the procurement of raw material,

process control to final product delivery atlas has always maintained its reputation forquality despite fierce competition in the trade.

Atlas products are premium products in the market developed through continuousresearch and are coupled with stringent quality control and designed on ergonomics stales

r & d department is very innovative and working to introduce very good bicycles on the

basic of public demand.

Atlas cycle Haryana itd Sahibabad Ghaziabad (U.P.) unit is no 2 unit started in 1989 and

now it is manufacturing 1 lc bicycles per month and also exporting number of bicycles in

number of gulf countries.

The Sahibabad unit is looked after by Mr.. Jaidev Kapur and is President of the company

and his sons Mr.. Girish Kapur and Gautam Kapur are joint President of the companyMr.. I. D. Chugh is a factory manager of Sahibabad unit and also appointed as a whole

time director by board of directors at the meeting held on 31 march for the period of five

years Mr. Chug is looking after labor department, time office security lessoning, disposal

and sales of the Sahibabad unit and he directly reports to he vice Presidents.

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Mr. R. M. Sood is CGM works he is the head of all production process. Production,

planning and control department is under Mr.. Sood. Mr. Sood directly reports to both

joint PresidentsMr. Sunil Khanna is CGM finance and HRD cos department is under Mr.. Khanna who

reports directly to both joint President

Mr.. Mr. Aggarwal is CRM purchase

Mr. P. K. Agha is DGM (EDP), Mr. Anu Gupta is DGM (finance)

Mr.. R. P. Gupta is AGM (accounts)

Mr.Vinay sharma is joint manager(cost account)

Mr. prabhakar prassad is deputy manager (personnel)

Mr. S.C Sharma is deputy manager (security)

Mr. A.G ahluwalia is CGM (exports)

Mr. Rakesh chdda is CGM (sales)

Mr. Anil rai is joint manager (exports)

Mr. Rahul mathur is GM (sales)

Mr. Rajesh abarwal is DGM (sales)

Mr. Ajit kumar is AGM (sales)

Mr. Raj sharma is manager (sales)

Mr. Naveen Bhatia is GM (works)

Mr. V.K maria is AGM (paint shop)

Mr. R.P singh is manager (maintenance)

Mr. Lorik singh is deputy manager (tubular)

Mr. Anil sharma is deputy manager (assembly)

Mr. O.P chopra is sr. GM (tools, research and development )

Mr. Vinod abbar is sr. GM (stores)

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Mr. Rajesh sachdeva is GM (purchase)

Mr. Vikas goel is DGM (civil)

Mr. G.D girdharwal is manager (audit)

Mr. Vinod singh is manager (transport)

BOARD OF DIRECTOR

Shri Hari kishan ahuja

Shri Hira lal Bhatia

Shri Id chugh (whole time director)

Shri Jai narayan shaweney

Shri prithvi raj chawla

Shri S.N seth

BANKERS

Central bank of India

Punjab national bank

Bank of baroda

State bank of India

AUDITORS

Messrs mehra khanna & company

Chartered accountants

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Companys Philosophy

The company believes in the principle of corporate governance and endeavors its best to

maintain transparency and professionalism with fairness and integrity to enhance the

interest of all its stockholders.

Opportunity and threats

As on date the whole world is one global market this has been made possible with

resolution. On account of this company has improved both domestic and internationalcompetitiveness not only to stay afloat but also to grow in time to come. This has become

essential since Indian market has now open to all the players including those from china

and Taiwan to start export to bicycles to our country in rider to be competitive the

company is now involved in brand building upgrading of technology and cost reduction.

Procedure is updated from time to time. The labor welfare activities and programmes areorganized by the factory as an on going process throughout the year which have played

an important role in establishing an atmosphere of mutual trust and harmony. The

company is running smoothly since last more than two decades without any workersunrest.

The company not only believes in abolition of child Labor Employment but it haspropagated this philosophy to other adjoining industries off the region having association

with it directly or indirectly. The minimum age of the employment in the factory is 18

yrs. which is the law of the land. The corporate policy does not allow any distinction ofany kind, such as race, sex, religion, language or property status in respect of

employment and occupation.

All forms of forced and compulsory labor has been completely eliminated from the

philosophy of the corporate and there exists total appreciation for each other between

Management and employees. As a matter of fact company has wishfully employed manyphysically challenged persons who are earning

Their bread and butter respectfully.

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DESIGN, MANUFACTURE AND QUALITY SYSTEM

The company is one of the biggest Bicycle manufacturing units producing most of the

components under one proof. It has got a vast Press Shop, Machine Shop, Brazing Shop,

Welding Shop. Heat treatment Plant, Plant Shop,, Electroplating Plant and AssemblyShop spread over in a campus of 28 years.

The manufacturing shops are equipped with state of the art machines for productionoperated by ITI trained operators under the supervision off qualified engineers. The

manufacturing facilities are supported by a modern tool room and a fleet of trained

maintenance staff for trouble-free running.

Research & Development Department provides components and tool drawings designed

by qualified engineers with the support of CAD, Necessary press tools, fixtures jigs,

special tools, templates and gauges are manufactured on high precision machine tools,

like jig boring machine, spark erosion machine etc. in tool room. All the tools and gaugespass through Tolls Inspection to ensure its precision and accuracy.

Quality Assurance Department of the company ensures the quality right from raw

materials to finish product covering stages like receiving inspection, in process inspection

and final inspection. Gauge Control cell of QA ensures timely calibration of allproduction gauges and measuring equipment used throughout the factory.

QA has got state of Mechanical Laboratory having Tensile Testing Machine of different

ranges upto 10 Tons, Optical Profile Projector, Spring Testing machine, VickersHardness Testers, Rockwell Hardness Testers, GSM Tester, Bursting Strength Tester,

Cupping Value Tester, Rubber Abrasion Tester along with Special Testing Equipment for

Handle, Pendal, Fork, Frame, Rim, Crank etc.

Chemical Laboratory of QA is equipped with paint test apparatus, carbon sulphur tester,

hull cell apparatus, flash point apparatus, Kinetic viscosity bath, nickel-chrome platingtester, micro test for zinc and paint thickness testing, UV tester and Salt spray testing

apparatus to provide assistance to receiving inspection, pretreatment plant, electroplating

plant, paint shop etc.

Climatic assets should depleted that productivity at the branch immediately collapsed and

could be restored only after more than two years of clean up work by skill

troubleshooters

Factors affecting organizational climate

* Organizational content* Culture

* Process

* Physical environment

* Systems, values and norms

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The Integration of Research & Development Tool Room, Manufacturing and QA

activities has resulted in high and consistent quality level of the company products

enhancing customer

ENVIRONMENT PROTECTION AND CONSERVATION

Atlas Managements is conscious about its social responsibility to protect and conserve

environment for the future generation. It has taken all around actions for pollution in thefield of water, air and noise and complies with all the regulatory norms as per the laws of

the land. It is also working in direction of pollution prevention as per the guidelines of

United Nations Environment Programme (UNEP) and Global Compact (GC).

The company has variety of manufacturing activities including electroplating, heat

treatment, painting, etc. As a precautionary approach to environment challenges out of

effluent generated by these production shops the company has installed most modern

Effluent Treatment Plant designed and commissioned by National Productivity. NewDelhi. It is reputed as one of the best Effluent Treatment Plants in northern India in

private sector industries. Company has spent more then 5 million of the its installationand spends about 0.6% of the product cost on effluent treatment. It treats around 5 lacs

liters effluents per day and ensures that not a single drop of effluent escapes without

effective treatment.

Working on similar lines, all the necessary air pollution control measures have been taken

by the company so that smoke emitting out of brazing furnaces, diesel generators and

boilers are within the permissible limits of emission.

To meet the noise pollution, the company has gone for the ultra-modern acoustic lining

on the walls of the diesel generators hall so as to reduce the sound level outside the wallby more than 30 DBA, whereas pollution control norms require reduction of 25 DBA

only.

In order to augment photo-synthesis cycle of nature and to maintain greenery, company

has planted more than 2000 plants and trees in its campus of 28 acres. Rain harvesting

system has also been incorporated for best utilization of rain water and 70% rain water is

now being recharged to sub-soil effectively.

Atlas is in constant touch with nodal Indian National Institutes, like Central Pollution

Control Board, New Delhi, National Productivity Council, New Delhi, Haryana PollutionControl Board Panchkula etc, for best development and diffusion of Environmentally

friendly technologies for continual improvement of environment by our joint efforts

Atlas Cycles Q4 net profit at Rs. 69 lakh vs Rs. 1 lakh

Atlas Cycles Q4 net sales at Rs. 105.74 crore vs Rs. 111.76 crore.

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ATLAS VISA ITS COMPETITORS

Tube Investments of India (TII), the flagship of the Rs. 4200-cr Murugappa group was

founded under the name TI Cycles of India in 1949. A group company, Tube Products of

India and TI Miller which manufactured cycle lamps and dynamo sets was merged withthe company in 1959 and 1984 respectively. A major part of the company's production is

exported.

Three of its divisions hold the prestigious ISO 9002 certification and the export-oriented

steel tubes unit is armed with QS 9000 certification. It is the largest integrated

manufacturer of cycle and the market leader in special cycles. Its cycles are marketed

under the BSA brand name. It has an overseas subsidiary, Parry Overseas. TIi set up acold-rolled formed metal sections unit at Nemilicherry near Chennai, which was

augmented in 1990-91 by the acquisition of Press Metal Corporation of India (a BIFR

company). Later it acquired Sathavahand Chains, a sick unit, making bicycles and light-

duty chains. Further to finance a major expansion-cum-modernization programme, itcame out with a GDR issue.

A new plant at Shirwal, Maharashtra, to manufacture ERW and CDW tubes was

commissioned and for the export market, it set up a 100% EOU at Avadi, Madras, for the

manufacture of ERW and CDW tubes. The roll from division commissioned the two doorframe projects, one near Chennai and another in Haryana for supply door frames to be

used in some of passenger cars made by Hyundai Motors and Marui Udyog. TI

International Holdings (a wholly-owned subsidiary of the TI Group Pic, UK) has sold its

entire holding of 9.92 lakh equity shares in TII to the Murugappa group. It's holdingrepresents 4.03% of the equity in the company and is a former joint venture partner of the

company.

The company has launched 48 new models during 2001-02 and also successfully

implemented new model of operations by replacing manufacturing with outsourcing at

Nashik in 2002-03 the company made a buy programme of 25% its equity at Rs. 100 pershare. Subsequent to this share capital stands reduced to RS. 18.47 crores. The company's

Bawal unit in Haryana and Chennai Plant received the Qs-9000 certification and ISO-

14001 certification in 2002-03. Since majority of components were sourced from

Ludhiana in North India, the company set up a manufacturing unit at Noida and also atthe same time at can cater to the growing northern market.

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STATEMENT FROM THE PROBLEM

Training is the required on account of the following reasons:

Job Requirement- Employees selected for a job might lack the qualification requiredto perform job effectively. New and inexperienced employees require details

instruction for effective performance on the job. Remedial training should be given to

such people to match the needs of the organization. New employees need to provideorientation training to make them familiar with the job and the organization.

Technology Changes- Technology is changing very fast. Now automation andmechanization have are being increasingly applied in offices and service sector.

Increasing use of fast changing techniques requires in training into new technology.

No organization can take advantage of latest technology without well trainedpersonnel. New jobs require new skills. Thus both new and old employees require

training.

Organizational viability- IN order to survive and grow an organization mustcontinually adopt itself to the changing environment. With increasing economic

liberalization and globalization in India, business firm are experiencing expansion,

growth and diversification. Training programmes foster the initiative and creativity ofemployees and help to prevent obsolescence of skill. Trained staff is the most

valuable asset of a company.

Internal Mobility- Training becomes necessary when a employee moves from one

job to another due to promotion and transfer. Employees chosen for higher-level jobs

need to be trained before they are asked to perform the higher responsibilities.Training is widely used to prepare employees for higher-level jobs.

Thus, there is an ever present need for training people so that new and changed

techniques may be taken advantage and improvements in old method are effected.Need for training has increased due to growing complexity of job, increasing

professionalisation of management, growing uncertainties in the environment, global

competition, ever-increasing gap between plans and result and sub optimalperformance levels.

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OBJECTIVE OF THE PROJECT

Any kind of study has it own objectives and purpose. With objectives, nothing can be

achieved. The objective of this of this training is to gain practical knowledge of what allsteps an organization undertakes to promote its Building up a potential appraisal system

andalso become familiar with the basic and general operation of the business houses. In

this context, the project is titled Building up a potential appraisal system.

The main objective is to analyze, examine and interpret the policies adopted in changingand implement rules & policies for employees development.

The study is aimed at fulfillment of the following objective:-

To provide a comprehensive framework and methods for the development of HRin an organization.

To generate systematic information about human resources for purpose ofmanpower planning, placement, succession planning and the like.

To increase the capabilities of an organization to recruit, retain and motivate,

talented employees.

To create a climate that enables employee to discover, develop and his/her

capabilities to a fuller extent, in order to further both individual and

organizational goals.

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SCOPE AND IMPROTANCE OF STUDY

Every organization that wants to become dynamic and growth-oriented or to succeed in a

fast changing environment important for HRD. HRD play a vital role in the success andgrowth of an organization in following ways: -

HRD improve the capabilities of people by making them better aware of theskills required for the job performance and by improving clarity about

performance standard. HRD strength executives skills.

HRD improve communication in the organization.

HRD helps an organization in procuring that right people at the right time and in

making their effective use.

HRD improve employee commitment to the organization due to grater objectivity

in the administrative of rewards. Contributions of employees are valued andrewarded in a better way.

HRD provides an opportunity for continuous and all round growth of employees

through succession planning and career planning.

HRD improve collaboration and teamwork. Employees become more open and

trust each other.

HRD improve problem solving and adaptation skills of employees. Resistance to

change is reduced.

HRD generates a lot of useful data which facilities human resources planning andcontrol.

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RESEARCH METHOLOGY

Research design- Descriptive study

Data Type- Data can be collected in two ways. Firstly I use the primary data collectiontechniques. Then I was use the secondary data collection method.

Primary Data- The primary data refers to the first-hand original data collected by theinvestigator through interview, mail survey, field survey, or any other method. I were go

to individual person and collected.

Secondary Data-Secondary data consists of data, which have already been collectedby some other person and have passed through the statistical machines atleast once.

Under this I were some data collected from Internet, some file document etc.

Sample- I were do survey on factory campus. I were going every department orcollected data individual. I was asked some different question on his performing job

condition.

Sample Procedure- This sampling procedure was good and helpful for my report. It

was judgment-sampling procedure. It also helpful for me because how all job procedureis following according of organization.

Sampling Method- Personal survey method through preparation of Questionnaire.

Limitation of project:- The size of sample should be large to ensure statistical reliability under random

sampling. In this present survey the sample size is of 99, which could not be

enough from statistical reliability point of view.

Due to lack of time and interest the respondent, were not very cooperative infilling the Questionnaire as a result of which the results could be biased to an

extent.

Some respondents give vague information.

Disinterest shown by few respondent to give response to the Questionnaire.

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THEORTICAL CONCEPT

NEED FOR JOB ANALYSIS

Reduced costs in the business

As the economy continues to improve and the job market heats up, most companies willbegin struggling with turnover as key employees discover better opportunities and greater

rewards elsewhere. According to walker information, an Indianapolis-based research

firm, only 25 percent of worker currently feels a strong attachment to their employers,

and four in ten feel trapped in their job. Other research suggests that between 30 and 40

percent of workers are ready to leave their companies, and many already are activelysearching for that next opportunity. With replacement, losses before they occur have a

dramatic effect on reducing turnover costs, and internal networks and efficiencies can bewreaking. An effective survey can help you anticipate and head off these types of

problems, or minimize their effects.

Improved internal practices and better management

Employees who find their jobs challenging, and who feel that their contributions arevalued, become much more invested in and supportive of company goals and are willing

(and likely) to contribute their best. Motivation and productivity levels increase, and there

is a greater flow of ideas and suggestions about how to better attain common objectives.It takes appropriate practices and inspired, effective management and supervision to gainthese results however, and you want to make sure you have them. Surveys can help you

determine hoe you are doing and where you are lacking. But it is important to ask

employees the right questions to get the information you need to make improvements. Ifyou dont ask the questions, you will be making up the answers or assuming you know

them, which can be disastrous in mare ways than one.

Customer retention and increased sales

Customer contact people are the window into customers need and wants, and can

directly influence how customer feels about your companys product and services. It iswell know that employees treatment of customers often reflects the way they are treated

by the company. it is critical, therefore, to know how employees perceive their workrelationship with you. Inspired, satisfied employees promote customer retention. High

service levels from confident, competent workers inspire increased sales and greater

customer loyalty. Ideas for new services and product improvements can result, and it all

begins with finding out what employees have on their minds. Dont assume you know.

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Foundation for creating an exceptional workplace and better financial

results

How companies treat employees relates directly to organizational performance. There are

numerous books that have been written about it, and there is plenty of evidence to

demonstrate the positive effect inclusive, supportive work environments can have on thebottom line. Companies that are considered to offer exceptional work places have a

clearly stated purpose (business goals and objectives) frequent open two-way

communication employee focused progarmmes that allow workers to be fully engaged in

their work and directly contribute to business success. Employee survey can help yourcompany being about these kinds of results.

Weather HR is directly involved in conducting employee surveys or not determine thequestions that need to be asked and the results that need to be Act upon are the

responsibility of HR and the chief executive active in partnership. Promoting effective

two-way communication is core imperative for both HR (who are the stewards of thecompanies workforce practices) are the companies senior management because it enables

of the company to gain the most value from it most valuable resource its people.

Conducting employee surveys is strategic work that provide you with information andinsight that can influence the types of people you hire and develop the way you manage

and ultimately the quality of products and service you deliver to customers. It helps you

build the kind of organization that attracts and retains the best talent develops the bestproducts and service, and creates satisfied and loyal customers. And all of this leads to

better business results.

If you would like more information on the value and use of surveys for determining

employee and/or customer satisfaction levels and the relationships between two contact

us at 925-828-4700. You will find additional information about employee surveys here.

Programming language used

Computer platform used

Interpersonal contacts with outsiders (customers)Interpersonal persuasive skills or sales skills

Amounts of mental or physical stress

Necessity to work as a team member

Needed contribution to a work groupAuthority or judgment exercised

Customer service skills

At the very minimum you should have a list of tasks and duties with some information

regarding their importance to the overall performance satisfactory employee andindication of the frequency these duties are performed. The analyst (person conducting

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the study) should be able to describe the basic concept of the job and extrapolate working

conditions, skills and knowledge needed to perform each task, and minimum

qualification to be stated in requirement brochures.

Some use for a job analysis:

The most important use of job analysis is to produced a basic job description of what the

job is in the here and now which can facilitate basic human resource problem solving.

The second is to provide employee and supervisors with a basic description of jobsdescribing duties and characteristics in common with and different from other positions

or jobs. When pay is closely associated with levels of difficulty these description wil help

foster a feeling of organization fairness related to pay issues. Other important uses a jobanalysis can be put to (some are related to the two above):

Indicate training needs

Put together work groups or teams

Provide information to conduct salary surveys

Provide a basic for determining a selection plan

Provide a basic for putting together requirement

Describe the physical needs of various positions to determine the validity ofdiscrimination complainants

A part of an or organization analysis

A part of strategic planning

A part of any human relations needs assessment

As a basic for coordinating safety concerns

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HUMAN RESOURCE DEPARTMENT

The company has a hard department that provide training to all level of employees it

endeavors to upgrade knowledge, attitude, skill and behavior of all the employees.Cordial relation are maintained at all the department. The grievance redressed

procedure is up date time to time. The labor welfare activities and programs

organized by the company as an on going process have also played a important role inattaining ideal and disturbed industrial in the company the company has a manpower

strength of approximately 514 employee:

205 employees are in security and workers

209 employees are permanent employees including staff

60 employees are employed on contractual basis

40 employees are casual workers

The functions of HRD includes recruitment, training and development, labor welfareand making good relation between worker to worker

Working involves plant layout recruitment of right person at right place at right timeto get the product and it also involves assessment of newly recruited person by

making monthly assessment for calculating he monthly recruitment of training and

their feedback. Its works also involves maintaining the good working environmentregarding worker to staff relation and worker-to-worker relations. It also involves

handling of major or minor indiscipline and to take action against the culprit. It also

involves periodic promotion and organizations of travel and tour for entertainment ofperson both worker and manager staff.

HRD WORK INCLUDES

ATTENDANCE SYSTEM

ESI

PF

GRATUITY

BONUS

COMPLIANCE UNDER VARIOUS LABOR LAWS

LEAVE SYSTEM

LABOR WELFARE ACTIVITES

CHECKING OF RECORDS OF ALL DEPARTMENTS

COMPLIANCE OF ALL OFFICE ORDERS

PIECE RATE SYSTEM

TIME RATE SYSTEM

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FUNCTION OF HRD

Supports the HR needs of the institution and its constitutes;

Promotes organizational vitality through effective and efficient administration of theinstitutions human resource function;

Works to maintain a environment which encourages all employees to achieve theirpersonal and professional goals, aspiration and highest potential as the work toward

achieving the institutions mission and there departments goals.

Support the continued growth and development of the institution most valuable resources,

its PEOPLE;

Attract and retain a quality institution facility and staff,

Provide a comprehensive range of support services,

Administer benefits programs, which meet the needs of employees.

Serve the institution community by providing a positive work environment,

Perform it responsibilities in compliance with guide lines established by the board

of trustees,

Continually strive to be responsive to the needs of the faculty and staff as they

assist student in their educational endeavors with a focus on continuousimprovement

Human resource team value:

Quality service (service excellence)-that is responsive, courteous, supportive,

accurate

Highly Ethical Conduct- Reflecting honestly, integrity, and fairness Dignity and Respect- For one another and for all members of the institutions

diverse community

Diversity- fostering appreciation of diversity and having a welcoming, inclusiveand cooperative environment for everyone and unity among all group

Team work- cooperation and collaboration among all staff members of HR and

with other member of institution community

Technology- enhancement that improve operations and customer service The ability to anticipate, embrace and manage change.

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FUNCTIONS OF HRD

RECORD MAINTAINED

EMPLOYEMENT

Numbers beginning or end of the year

By departments

Employees-temporary or permanent

Sex

Weather hourly rated or salaried

Labor turnover separation and accession

By department and /or plant

By types of separation

By quits, lay offs discharges By avoidable Vs. unavoidable

By reasons (marriages, home duties, pregnancy, frequency, moving, pension,

death compensation with local, state, or national turnover)

Unfulfilled requisitions

By departments

By jobs

JOB ANALYSIS, RECRUITMENT AND SELECTION

Job analyzed or reviewed

By department

By plant

Application for employment: by skill,

By sex

By source

Employee interviews

Applicants tested

Reference checked

TRAINING

Enrolment by training programs

By new trainee programes Turnover, separation of formal trainees, cost of training

PROMOTIOMS,TRANSFERS AND APPRAISALS

Promotions by departments

Transfers by departments

Numbers rated by departments

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LABOUR RELATION

New agreement In negotiation/Negotiated

Amendments negotiated

Arbitrations in process or concluded by result

Grievances settled and in process

By subject

By the stage at which settled

By the nature of settlement

MEDICAL AND SAFETY

Death among employees, Retirement, Physical examination, medical treatment,

hospital calls on employees, illness, number of cases per department

By kind of illness

By department

By cause

By frequency rates

Workmen compensation and no. of cases

By new and the current cases

By amount of benefits

By cost

OTHER EMPLOYEE SERVICES Benefit plans, memberships, benefit offered

By number of employees

By types (death, disability, maternity)

By amount paid

Personal loans and amount

Credit union

Application received

Application approved or disapproved

Loans extended, no. & amount

Life insurance

Pension

Normal retirement, optional and disability retirement

House organs, circulation cost

Suggestions, no. received, disposed of; awards or succession

Cafeteria

Meals served rupees sales cost subsidies

Recreational activities

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Types, participation, cost

WAGES AND SALARY ADMINISTRATION

Rates reviewed and rates changed by no.

By type, merit increases, revaluation

Job evaluation by department or type of job

Time, total hours, departments and no. of employees effected, total cost

Earnings, weekly average, by department, hourly rates or salary proportion ineach age and salary class

Call in and call back pay, by cost

RESEARCH RECORDS AND REPORTS

Project completed

Progress reports on continuing projects new projects planned or undertaken

RECORDS AND REPORTS

Special reports released personnel action recorded

STAFF ADMINISTRATION

Staff assignment by name

Expenditure on staff activities

By controllable Vs uncontrollable

By major activity

FUNCTION OF HRD

EMPLOYEE WELFARE

1. Condition of work environment

1.1 Working conditions , temperature, ventilation, lighting, dust, smoke, fumes and

ages, noise, humidity, posture-simple and hazards and safety complex devices1.2 Factory sanitation cleanliness provision of urinals in factories, provision for

disposal of waste and rubbish, provision for water disposal and drainage,

provision of repair of building and work shops, cars and maintained of openspaces and gardens, rods etc.

1.3 Welfare amenities provision and care of drinking water, canteen services, lunch,

rest room.

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2. Employee health services

2.1 Factory health service, medical examination of employees, factories, dispensariesand clinic treatment, first aid and ambulance room, treatment of accidents and

health education and research

2.2 Recreation playgrounds for physical recreation, athletes, games, gymnastics etc,social culture recreation(music, singing, drama)2.3 Workers education to improve skills and earning capacity, literacy, library,

pictorial education, lecture programmer, and workers education schemes.

2.4 Economic services employees cooperative societies, grain shops and fair price

ships and housing cooperatives.

2.5 Housing for employees and community services.

2.6 Study of working of welfare acts, factories acts employees state insurance act and

minimum wage acts.

2.7 Social work in industrial setting family planning and employee counseling.

PERSONNEL ADMINISTRATION

1. Recruitment

1.1 Recruitment procedure recruitment of personnel, knowledge of sources ofemployees supply, receiving application interviews, investigation of reference.

1.2 Job description, job specification, job analysis

2. Manpower planning

2.1 Placement, job assignment, job enlargement, and personnel development.

2.2 Introduction of superiors, introduction to welfare activities and other facilities

and procedure, service conditions, sponsors system (follow up interviews).

2.3 Wages and salary administration (job evaluation) wages scales, increment,

salary and wages standardization, incentives, payments and allowances,working hours, overtime, profit sharing bonus, holiday keeves, executive

compensation plans and fringe benefits and peak visits.

2.4 Discipline instances of indiscipline and misconduct, causes of indiscipline,

how to deal with indiscipline, domestic enquiry, handicaps of management in

the maintenance of the discipline and enforcement of certain rules, shop floor

supervision and its responsibilities.

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2.5 Transfer and promotion procedure to be adopted, causes of transfer and

promotion, personnel for transfer and promotion, record of transfer andpromotion.

2.6 Merit rating and evaluation of employees, assessment techniques, counseling.

2.7 Motion, time and work-study.

2.8 Prevention of losses, material loss, work loss, time loss.

2.9 Administration in relation to absenteeism late coming, employee turnover,

remedies, statistical analysis.

2.10 Personnel training and development training programmes for apprentices,

workers, foreman and supervisors, junior executives, management staff.

3 Recruitment-

3.1 Provident fund and pension plans

3.2 Gratuity provisions

3.3 Exit interview

3.4 Long service awards

3.5 Retirement plans, housing, medical aids

4 Study of working of -

4.1 Apprentice act

4.2 Employee exchanges (compulsory notification of vacancies) act

4.3 Payment of wages act, payment of bonus act

4.4 Shops and establishment act

4.5 Employees provident fund act

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ORGANIZATION CLIMATE

INSTRUCTION AND MEANING

Climate is commonly experienced phenomenon and is often referred to by many

expression as atmosphere, surroundings milieu, environment and culture, traditions and

method of action. Which is their totality comprise its culture, climate for people. Each

new employee makes his psychological contract with an organization hoping that it will

have a supporting climate to help him meet his economic, social ad psychological wantsthe perception he has of that climate produces its images in mind.

Some organization are busting and efficient others are easy going some are quite humanothers are hard cold an organization tends to attract and keep people who feet its climate

DEFINITIONS

Climate perceptions are psychologically meaning full molar description that people can

agree characterize a systems practices and procedures its practice and may create a molar

perceptionFunction as a frame of reference for the attainment of sun congruity between behavior

and a system practices and procedures however if the climate is one which reward andsupports the display of individual differences people in the system will not behavesimilarly further because satisfaction is the personal evaluation of a system practices and

procedures, people in this system will tend to agree less on their satisfaction that on their

description of the system climate.

According to Benjamin Frankin Schereides and roves organization climates is the

summary perception, which people have about an organization it is thus a globalexpression of what an organization is

According to forehand 1968, climate can be seen as an interaction between environment

variables and persons variables. Organization all characteristics are perceived selectedand interpreted by organizational members who create the climate, then influences, along

with individual motives and abilities the outcome variables of satisfaction, productivity

and motivation

Climate should be seen as a system variable, which can permit the analysis and

understanding of individual and group behavior in actual and complex social situations(lit win and stringer 1968, tagiuri, 1968)

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Climate refers principally to the prevalent attitudes; values norms and fillings have

concerning the organization (Payne and push 1976)The three aspects o' climate have been determined through an evolutionary process.

Forehand and glimmer initially proposed that organization climate referred to the set of

characteristics that describe an organization and distinguish it from and are relativelyover time and influences the behavior of people in the organization

A sound climate is a long term proposition, manages need to take assets approached toclimate meaning that they take a long run view of climate as an organizational assets.

Unlike discipline excessive pressure on people in the organization may temporarily

increase the production and productivity also but I may be at the cost of climate assets an

interesting example is the new branch manager who for two years used all sorts ofautocratic devices to cut budget and put pressure on his man to increase productivity. He

lost some of his key man but achieved an outstanding output record, which leads to his

promotion to the home office near to the end of his second year.

Climatic assets should depleted that productivity at the branch immediately collapsed andcould be restored only after more than two years of clean up work by skill

troubleshooters

Factors affecting organizational climate

* Organizational content

* Culture

* process* Physical environment

* Systems, values and norms

ORGANIZATION CONTENT

The reaction of the employees and degree to which they welcome and accept the

managerial philosophy is very crucial to the development of sound and favorable

organizational climate. The climate is said to be highly favorable when the existingmanagement techniques are such that employees goals are perfectly matched to the ideas

of organization

STRUCTURE

Structure is another important factor affecting the organization climate structure is theframe work that is frame work that establishes formal relationship and delineates

authority and functional responsibility

PROCESS

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In every organization certain process are vital so that it is runs communication, decision

making motivation and leadership are some of the very important process through whichthe management achieves its tasks if we consider leader follower relations in leadership

process it is leaders choice whether to allows subordinates

In decision-making or not. A leader has to be aware of all possible consequences of his

action on organizational climate while deciding about the most appropriate supervisory

technique for a given situation it should be noted that failure to give consideration to theaffect on climate could cause great harm to the organization.

PHYSICAL ENVIRONMENT

The external conditions of the environment, the size the location of the work place etc,

will also affect organizational climate

SYSTEM VALUES AND NORMS

Every organization has discernible and fairly evident formal value system where certainkinds of behavior are rewarded and encouraged and certain kinds of behavior forces an

individual to formal sanctions the formal value system is communicated to employees

through rules, regulations and policies. But is formal value system is very difficult toascertain. But both exert influences on organization climate.

MODEL OF CLIMATE (TRADITIONAL)

Three classes of variables influencing organizational climate includes external influences

physical influences and socio cultural environment. Climate is also influenced by

personal effects of the members of the organization. External influences on climate arephysical environment personal influences involve managerial behavior, the leadership

pattern and rewards and controls.

REVISED CLIMATE MODEL

The revised model is similar to the primary one except the fact that psychotically climatenow has a central role with the organizational climate the concept developed by lain and

housel which explain the perceptual development of climate have also been integrated in

to the model.

The model depicts several influences on the climate which may be external personalawareness of this variables is moderated by the group, the individual is the member of by

the task and by individual personalities the quasi physical, quasi social and quasi

conceptual facts the person perceives are the function of this external organization and

person variables.

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ESI SCHEME

AND REGULATIONS TO BE FOLLOWED IN DISPENSARY / HOSPITAL

1. Courtesy Begets Courtesy. Help us to serve you better.

E. S. I. Identity Card is not transferable. Misuse of E.S.I. Card is a punishable

Offence.

Patients and their attendants are requested to Help us to keep the Hospital /

Dispensary Clean.

If the IP's Number is not in the Running List, the Employer must issue Form 37,to ensure their contribution to ESI Corporation.

Please bring your Identity Card coming to the hospital / Dispensary along with the 200pages note book with a family group photo of 6 x 4 size which should be attested by the

employer, each family member should be identified by the IMO with two identification

marks. The first 50 pages should be allotted to the IP, next 50 pages to the spouse and

remaining pages should be allotted to the family members.

Only the name entered in the ESI Card eligible for medical benefits. They are:i) Spouse

ii) A dependent minor child (up to the age of 18 years.)

iii) A wholly dependent son, who is receiving education, up to age 21 years.

vi) Subject to being wholly dependent.

A) An unmarried daughter irrespective of her age and

B) A child who is infirm by reason of any physical or mental abnormality orinjury and is wholly dependant on the earnings of the Insured Person, so long as the

infirmity continues.

v) Dependant parents

Please follow 'Queue' system while taking O.P. slips, consultation, medicines, injectionsetc.

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Examination of patient takes time. Please have patience, please do not disturb while

attending on other patients.

If a person wants to go to ESI Hospital, he / she must take the Reference slip from the

seal and it should be utilized within one week.In case of Emergency, Causalities & Labor pains, the IP may go to ESI Hospital directly

with the ESI Identity card and notebook.

In case of accidents with factory, the employer must intimate within 24 hours of accident

to the concerned ESI Dispensary and Local Office in the prescribed from No. 16.

LABOUR JURISDICTION

Under the Constitution of India, Labor is a subject in the Concurrent List where both theCentral & State Governments are competent to enact legislation subject to certain matters

being reserved for the Center.

Labour Jurisdiction : Constitutional Status:fffLabour

ctiUnion List Concurrent List

Entry No. 55 : Regulation of labor and Entry No. 22 : Trade Unions;

safely in industrial and labor disputes.Entry No. 61: Industrial disputes concerning Entry No. 23: Social Security and

Union employees insurance, employment andUnemployment.Entry No. 65: Union agencies and Entry No. 24: Welfare of labor

including conditions

institutions for "Vocational"......training...." of work, provident funds, employeesinvalidity and old

age pension and maternity

benefit.

Cabinet Minister: Sh. K. Chandrasekhar Rao

ESI

Employees' State Insurance Scheme of India is an integrated social security schemetailored to provide social protection to workers and their dependants, In the organized

sector, in contingencies, such as, sickness, maternity and death or disablement due to an

employment injury or occupational hazard.

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The ESI Act, (1948) applies to following categories of factories and establishments in the

implemented areas:-

* Non-seasonal factories using power and employing ten(10) or morepersons

* Non- seasonal and non power using factories and establishments

employing twenty(20) or more persons.

The "appropriate Government" State or Central is empowered to extend the provisions of

the ISI Act to various classes of establishments, industrial, commercial or agricultural ofotherwise. Under these enabling provisions most of the State Govt's. Have extended the

ESI Act to certain specific class of establishments, such as, shops, hotels, restaurants,

cinemas, preview theatres, motors transport undertakings and newspaper establishments

etc. employing 20 or more persons.

The ESI Scheme is mainly financed by contributions raised from employees covered

under the scheme and their employers, as a fixed percentage of wages. Employees of

covered units and establishments drawing wages unto Rs. 6500/- per month come underthe purview of the scheme for social security benefits. However, employees, earning up

to Rs. 40/- a day as wages are expenditure on Medical Benefit within the per capitaceiling of Rs. 600/- per annum and all additional expenditure beyond the ceiling.

Employees covered under the scheme are entitled to medical facilities for self anddependants. They are also entitled to cash benefits in the event of specified contingencies

resulting in loss of wages or earning capacity. The insured women are entitled to

maternity benefit for confinement.

Where death of an insured employee occurs due to employment injury, the dependants

are entitled to family person

* Celling for commutation of partial disablement benefit has been raised from the

existing Rs. 10,000/-to Rs. 30,000/-w.e.f. 19-04-2003 in case the daily rate of

benefit is upto Rs.5/-

* Enhancement of selling on expenditure on medical per insured person per annum

from the existing Rs. 650/-to Rs. 750/-per person w.e.f. 01-04-204

* Employees earning up to RS. 50/-a day exempted from payment of ISI

Contribution w.e.f. 01-04-2004. The employers share of contribution is however

payable.

* Confinement expenses for child delivery without utilizing ESI Medical service

have also been increased from Rs. 7500/-w.e.f. 01-04-2004

* The wage selling for coverage of employees under the ESI Act has been enhanced

from Rs. 6500/- to Rs. 7500/-w.e.f. 01-04-2004

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* Four more slabs have been added to the Daily Standard Benefit rates for sickness

benefit to the existing 28 slabs ranging from Rs. 125/- to Rs. 145/-w.e.f. 01-04-

2004

The Corporation has now introduced 'Rajiv Gandhi Shramik Kalyan Yojna for

insured persons who face involuntary unemployment w.e.f. 1st April 2005. Theinsured persons under the scheme are entitled to an unemployment allowance

for a period of up to six months equal to almost half the wages.

The section 46 of the envisages following six social security benefits:-

Medical Benefit

Sickness Benefit (SB)

Extended sickness Benefit (ESB)

Enhanced Sickness Benefit

Maternity Benefit(MB)Disablement Benefit

Temporary disablement benefit (TDB)Permanent disablement benefit (PDB)

Dependent's Benefit (DB)

Funeral Expenses

An interesting feature of the ISI Scheme is that the contributions are related to thepaying capacity as a fixed percentage of the workers wages, whereas, they are provided

social security benefits according to individual needs without distinction.

Cash Benefits are disbursed by the Corporation through its Local Office LO's/ Mini

Local Offices (MLO's)/Sub Local Offices SLO's)/pay officers, subject to certain

contributory conditions.

In addition, the scheme also provides some need-based benefits to insured workers.

These includes:Rehabilitation allowance

Vocational Rehabilitation

The Employees' State Insurance Scheme provides full medical care in the form of

medical attendance, treatment, drugs and injections, specialist consultation and

hospitalization to insured persons and also to members of their families where the facilityfor Specialist consolation hospitalization has been extended to the families.

For the families, this benefit has been divided into two categories as under:-

FULL MEDICAL CARE

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This consists of hospitalization facilities and includes specialist services, drugs

and dressings and diets as required for in-patients.

EXPANDED MEDICAL CARE

This consists of consultation with the specialists and supply of special medicines

and drugs as may be prescribed by them in addition to the outpatient care. This also

includes facilities for special laboratory tests and X-Ray examinations.

IMMUNIZATION

The Corporation has embarked upon a massive programme of immunization of

young children of insured persons. Under this programme, preventive, inoculation andvaccines are given against diseases like diphtheria, pert sis, polio, tetanus, measles,

mumps, rubella, tuberculosis etc.

FAMILY WELFARE SERVICES

Along with the immunization programme, the Corporation has been undertaking

provision of family Welfare Services to the beneficiaries of the Scheme. The Corporation

has organized these services in 180 centers besides reserving 330 beds in hospitals for

undertaking tubectomy operations. So far, 828976 sterilization operation viz. 176197vasectomies and 652779 tubectomies have been performed up to 31.3.1999. The ESI

Corporation has also extended additional cash incentive to insured person to promote

acceptance of sterilization method by providing sickness cash benefit equal to full wagefor a period of 7 days for vasectomy and 14 days for tubectomy. The period for which

cash benefit is admissible is extended beyond the above limits in the event of any

complications after Family Planning operations.

SUPPLY OF SPECIAL AIDS

Insured persons and members of their families are provided artificial limbs, hearing aids,and artificial appliances like spinal supports, cervical collars, walking calipers, crutches,

wheel chairs and cardiac pace makers as a part of medical care under the Scheme.

Sickness Benefit represents periodical cash payments made to an IP during the period ofcertified Sickness occurring in a benefit period when IP requires medical treatment and

attendance with abstention from work on medical grounds. Prescribed certificates are;

Forms 8, 9, 10, 11 & ESIC Med. 13. Sickness benefit is roughly 50 % of the averagedally wages and is payable for 91 days during 2 consecutive benefit periods.

Qualifying Conditions

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(1) To became eligible to Sickness Benefit. an IP should have paid contribution for not

less than 78 days during the corresponding contribution period.

(1.1) A person who has entered into insurable employment for the first time has to waitfor nearly 9 months before becoming eligible to sickness benefit, benefit, because his

corresponding benefit period starts only after that interval.

(1.1.1) Sickness Benefit is not payable for the first two days of a spell of sickness except

in case of a spell commencing within 15 days of closure of earlier spell for which

sickness benefit was last paid. This period of 2 days is called ''waiting period'' Thisprovision should be clearly understood by IMos/IMPs as actual experience shows that

such of IPs who want to avail medical leave on flimsy grounds generally come for first

certificate/ First & Final Certificate within 15 days of earlier spell, usually on unpaid

holidays and/ or on each weekly off etc, to avoid loss of benefit for 2 days due to freshwaiting period.

Maternity Benefit is payable to an insured Woman in the following cases subject to

contributory conditions:-Confinement-payable for a period of 12 weeks (84 days) on production of Form 21 and

23.Miscarriage or Medical Termination of Pregnancy (MTP)-payable for 6 weeks (42 days)

from the date following miscarriage-on the basis of form 20 and 23.

Sickness arising out of Pregnancy, Confinement, Premature birth-payable for a period notexceeding one month-on the basis of Forms 8, 10 and 9.

In the event of the death of the Insured Woman during confinement leaving behind a

child, Maternity Benefit is payable to her nominee on production of Form 24 (B).

Maternity benefit rate is double the Standard Benefit Rate, or roughly equal to theaverage daily wage.

Sickness Benefits

Temporary Disablement Benefits (TDB)

a) TDB is payable to an employee who suffers employment injury (EI) or Occupational

Disease and is certified to be temporarily incapable to work, Employment Injury'' has

been defined under Section 2(8) of the Act, as a personal injury to an employee caused byaccident or occupational disease arising out of and in the course of his employment,

being in insurable employment, whether the accident occurs or the occupational disease

is contracted within or outside the territorial limits of India.

Certificates Required for TDB:

Accident Report in form 16,

Form 8, 9, 10, 11 and ESIC Med. 13.

Eligibility for TDB:

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The benefit is not subject to any contributory conditions. An IP is eligible from

the day he joins the Insurable employment.

(d)TDB Rate is 40 % over and above the normal sickness benefit rates. This

works out to nearly 85 % of the average daily wagesDuration of TDB:

There is no prescribed limit for the duration of TDB. This is payable as long as temporarydisablement lasts and significant improvement by treatment is possible. If a Temporary

Disablement spell lasts for less than 3 days (excluding day of accident). IP will be paid

sickness benefit, if otherwise eligible. A special point for IMOs/ IMPs is that some IPs

may resist taking a Final Certificates especially before 3 days for fear of loss of TDB.

(a) PDB is payable to a n IP who suffers permanent residual disablement as a result of EI

(including Occupational Diseases) and results in loss of earning capacity. The proper

authority for assessing loss of earning capacity for injuries is the Medical Board and forOccupational Diseases, Special Medical Board.

(b)The duration of PDB may be for the period given by Medical Board, if assessment is

provisional or for entire life if assessment is final.

(c)PDB Rate: The PDB rate is calculated as percentage of loss of earning capacity as

assessed by the Medical Board/ MAT/ EI court in relation to TDB. List of injuries

deemed to result in permanent total disablement and percentage loss of earning capacity

has been previewed in 2nd Schedule to ESIC Act, 1948. Hence, the maximum rate ofPDB can be equal to the rate of TDB.

PDB amount is revised by the ESIC from time to time to adjust for inflation. The latest

enhancement is with effect from 01.08.2002

(d) Commutation of PDB (Regulation 76-B): IP whose PDB has been assessed as final

and who has been awarded the same at the rate not exceeding Rs. 1.50 per day may applyfor commutation of periodical payments of PDB into a lump-sum. When an application

for commutation is made within 6 months, LO/ RO will refer the case to MR. / PETER to

certify whether the IP has an average expectation of life for his age. Medical Referee in

the relevant place on RO/ LO letter issues such a certificate.

(e)Age of an IP will have to be proved to the satisfaction of the Corporation in all cases.

Medical Boards assess the age of IPs who is not able to produce satisfactory proof of ageand opinion of Medical Board shall be final in this regard.

The dependants' benefit is payable to the dependants as per Section 52 of the Act readwith provision of 6(A) of Section 2 in cases where an IP dies as result of EI. The age of

dependants, has to be determined either by production of

Documentary evidence as specified in Regulation 80(2) or

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Age certified by Medical Officer in charge of Government Hospital or

Dispensary.

The minimum rate of DB w.e.f 1.1.90 is Rs. 14/- per day and these rates of the DB are

increased from time to time. The latest enhancement is with effect from 01.08.2002CRAFTSMEN TRAINING

The Directorate General of Employment & Training (DGE & T) I n the Ministry of

Labour, Government of India initiated craftsmen Training Scheme (CTS) in 1950 by

establishing about 50 Industrial Training Institutes (ITIs) for imparting skills in variousvocational trades to meet the skilled manpower requirements for technology and

industrial growth of the country. The second major phase of increase in ITIs came with

the oil-boom in West-Asia and export of skilled manpower to that region from India,Several new private ITIs were established in 1980's in southern states mostly in Kerala,

Karnataka and Andhra Pradesh, etc. from where trained craftsmen found placementmainly in Gulf countries. in 1980, there were 830, ITIs and the number rose to 1900 ITIs

in 1987. During 1990's the growth of ITIs had been steep and presently there are over4971 ITIs(1869 in Govt. & 3102 in Private Sector) having a total seating capacity of 7,18

lakhs.

Under the constitution of India, Vocational training's the concurrent subject of bothCentral and State Government. The development of training's the concurrent subject of

both Central and State Governments. The development of training schemes at National

level, evolution of policy, laying of training standards, norms, conducting ofexaminations, certification, etc. are the responsibilities of the Central Government,

whereas the implementation of the training schemes largely rests with the state

Goats./UT Administrators. The Central Govt. is advised by the National Council ofVocational Training (NCVT), a tripartite body having representatives form employers,workers and Central/ State

Same purpose by the respective State Governments at state levels.

OBJECTIVES OF THE CRAFTSMEN TRAINING SCHEME

To provide semi-skilled/ skilled workers to industry by systematic training to

School leavers to reduce unemployment among educated youth by equipping

them with suitable skills for industrial employment.

.

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FACTORIES ACT

1) This act may be called the factories Act, 1948

2) It extends to the whole of India

3) It shall come into force on the 1st day of April 1949.

EMPLOYMENT PROVIDENT FUND

For New Entrants:

Enrolment: an employee is eligible for membership from the day he joins the

covered establishment.

If the employees emoluments exceed Rs. 6,500/- per month, he has the option to

join the scheme(s) with the consent of employer.

Declare previous employment details, if any, in form No.11 to yhe employer.

On becoming a member of the schemes file details in form No.2 (familyparticulars/nomination) through the employer.

Rate of contribution payable by a member shall be @ 12% of his emoluments.

A member can contribute statutorily over and above the prescribed rate.

For existing members:

Enrolment:

Any change in the family status, such as:-

o Marriage of the member.

o Additions/deletion in the family.

o Legal adoption of the children.

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o Chang of nominee is to be filed in form No.2 through the employer.

In the event, the member is holding a scheme certificate (under EPS, 95), he

should surrender the same to the concerned EPFO office, through his employer.

A member is entitled to various benefits & facilities such as withdrawals,advances, pensions, death insurance etc.

Employer:

Coverage

Establishments employing 20 or more persons and engaged in any of the 180

industries/classes of businesses specified.

Co-operative societies, employing 50 or more persons & working without the aid of

power.

Establishment not coverable statutorily can come under the coverage of the Act

statutorily.

An Establishment continues to be covered under the Act, irrespective of the fall in the

employment strength.

Since the Act applies on its own force to the establishments, the employers are required

to file the particulars in the specified format for registration and allotment of business

number.

Financial obligations:

Statutory rate of contribution is 12% of emoluments (basic wages, dearness allowan

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