hr practices in fabrication company
DESCRIPTION
A report on HR audit of a local Fabrication Company in NepalTRANSCRIPT
A Term paper Report
On
HR Practices in
Radha Structure and Engineering Works Pvt. Ltd
Miterimarga, Mid-Baneswor, Kathmandu
Submitted By
Binu SharmaDarshan Bhattarai
Neelam RegmiNinu Shakya
Ace institute of Management07.07.2010
Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
Table of ContentsIntroduction.................................................................................................................................................4
Management System:..............................................................................................................................4
Office:......................................................................................................................................................5
Main Factory:.........................................................................................................................................5
Vision:.....................................................................................................................................................6
Mission:..................................................................................................................................................6
Services....................................................................................................................................................6
Special Structures....................................................................................................................................7
Current HR Practices....................................................................................................................................8
1. Office Human Resource Segregation...............................................................................................8
2. Recruitment.....................................................................................................................................8
3. Hiring process..................................................................................................................................9
4. Training and development...............................................................................................................9
5. Labor law compliance....................................................................................................................10
6. Employee Retention policy............................................................................................................11
7. Performance appraisal...................................................................................................................11
8. Other HR related practices............................................................................................................12
Recommendations on HR practices...........................................................................................................13
1. Office Structure..............................................................................................................................13
2. Recruitment and hiring..................................................................................................................13
3. Training and development.............................................................................................................14
4. Labor law compliance....................................................................................................................14
5. Employee Retention......................................................................................................................14
6. Performance appraisal...................................................................................................................15
7. Other HR related recommendations..............................................................................................15
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
Scope of the Study
After a course on HR management, the scope of study is to study the HR Practices in Radha
Structure and Engineering Works Pvt. Ltd. by interviewing the HR & Administration Manger,
Previous HR & Administration Manger, interaction with the general staff in an organization and
understand all the system it has institutionalized. And based upon the study recommend
suitable strategies to enhance its system being focused on the best HR practices that the
company can adapt to so as to increase its productivity and employee satisfaction to acquire its
designed Mission, Vision and Goal.
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
Introduction
Radha Structure & Engineering Works (P) Ltd. was founded more than three decades ago. Since
its inception, Radha has played a major role in the development of infrastructure in Nepal. It is
an Engineers and fabricators primarily engaged in design, fabrication and installation of steel
structures. It have more than three decades of experience in various fields that include General
Structure, Industrial Structure, Poles and Towers, Substation and transmission, Micro
Hydropower, Motor able, Trail and suspension bridges. It is one of the first companies to
introduce innovation and professionalism in the field of structural steel fabrication. Our
superior quality of work is recognized among our customers, peers and competitors alike.
Management System:
Radha Structure is managed by qualified and highly experienced professionals. It firmly believes
that it is only as good as the people that work for them. Hence, they believe that continuing to
enhance the skills of their employees through ongoing training and education is of utmost
importance. The management fosters an open work environment where integrity, honesty and
teamwork form the major pillars of excellence.
Recognizing the strength in manpower development, Radha has an in-house training program
to hone the skills and expertise of new employees and experts alike. Employees also participate
in national and international level seminars, conferences, and workshops. Their own
Organizational Development Workshop held semi-annually is meant to enhance group
cohesiveness. It also serves as a forum for employees to voice their grievances.
Radha’s management understands that such principles as “being customer driven, managing
with facts and valuing people are not a choice; it is how we must be”. They believe that their
very survival depends on quickly analyzing the trends and adapting to the change around them.
| Introduction 4
Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
Office:
Radha has a well equipped office establishment consisting of Marketing, Finance, Accounts,
Administration, DDE (Design, detailing and Estimating) and PMCS (Project Management and
Customer Service) departments. A well equipped STADD, CAD and StruCAD center is a part of
their Design department. Intranet connectivity throughput the entire office building also
provides for excellent communication across the various groups. This along with several
Information technology path breaking functionalities look after the company process
management.
Main Factory:
Radha’s factory is well equipped with manpower and necessary equipment to meet its daily
production needs. The 200+ employees at the production site are functionally aligned with each
unit reporting to a supervisor. This separation through functional alignment results in the
workers becoming experts in their fields. There are also multiple cross training opportunities to
reduce key man dependencies which also ends up benefitting employees who are keen to
develop new expertise.
Following the guidelines of ISO9001:2008 (Quality Management System) all works done on site
is examined for quality by an 'Assembly Inspector' and Welding Inspector' who report
concurrently to both Production Director and Quality manager.
| Introduction 5
Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
Vision:
“With relentless focus on our people, technology and business systems, Radha aims to become a leader in Steel Fabrication. By upholding the highest standards of business conduct, we are committed in providing customized solutions to our clients and their ever changing needs.”
Mission:
“We are aware that products and technologies eventually become outdated, but lasting
relationships with our stakeholders, i.e., our valued customers, suppliers and partners will
undoubtedly put us in the forefront of infrastructure development in the world’s newest
Republic. Being a leader and an innovator not only requires the depth of knowledge gained
from over three decades of experience; it also requires producing tangible products and
services that go above and beyond our clients’ expectations.”
Services
Industrial & General Structures
It designs and fabricates various types of industrial
and general structural steel works such as Factories,
Warehouses, Pagodas, Space frames, etc.
Steel Bridge
It specializes in design, fabricate and install several
types of steel bridges such as: suspension suspended
and truss trail bridges, girder and trussed motor able
bridges etc.
Electrification & Substation Work
| Introduction 6
Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
It designs, fabricates and erects various types of transmission communication towers, mast
towers, transmission towers, tubular and telescopic poles, transmission poles, lighting poles.
Special Structures
It designs and fabricates special and customized structures to meet some specific requirements.
In recent years it has designed and fabricated several special structures that are both innovative
and unique.
a. Mayadevi Temple, Lord Buddha's Birthplace, Lumbini – A unique cubic space frame
system suitable for large open spaces and archeological sites where no site assemblies
on normal erection practice are allowed.
b. Image tower Lazimpat Kathmandu – A typical self supporting tower of around 60 m
height incorporated with moment connection but with no diagonal bracings.
c. Kantipur TV complex, Kathmandu – A typical curved bridge with nodal system.
d. HISEF building at Hattisar Kathmandu – Elegant architectural steel work.
e. Petrol pump at Gongabu bus park, Kathmandu – Unique modular tetrahedral
structural elements for large spans.
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
Current HR Practices
1. Office Human Resource Segregation
S.N Office Structure Administrative
Staff
labor
workers
1 PMCS Dept. 10 124
2 Engineering Dept. 15 -
3 Marketing 6 -
4 Administration and HR 14 -
5 Production 10 249
6 RTTI 4 -
7 Finance 7 -
8 Accounts 2 -
9 Civil 3 25
10 Trade 2 -
11 Hydropower 3 14
12 Micro hydropower 3 25
Total 79 437
2. Recruitment
The organization follows the following strategies for recruitment:
a. Word of mouth – The organization believes that the employees are happy and
the vacancies are referred by the staff to the probable candidates
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
b. Referral System – The organization takes referrals from staff and other
stakeholders to attract probable candidates
c. Internal notice – The organization publishes the notice and the staff could
recommend the probable candidates to the organization.
d. News Paper advertisement – The organization also publishes Vacancy
advertisements to attract skilled manpower to the system
e. Recruitment from college - one of the most important strategies being the On-
Campus recruitment. The talented engineers are recruited from the colleges
with referral influence before other organizations approach them.
f. Hiring from technical training institute – Skilled candidates are also hired from
technical training institutes who have basic understanding of the technicalities.
Besides RSEW has its own technical training institute citing the requirement of
trained professional.
3. Hiring process
a. Formal Interview — The formal interviews are organized for all the shortlisted
candidates where the interview panels would be the, administration manager,
respective dept manager and an invitee from any other department
b. Informal Interview — Those who have been referred by the stakeholders,
informal interview are taken by the Managing Director himself.
4. Training and development
The organization is determined to upgrade the skills of employees in the organization. It
follows various types of training based upon requirement.
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
a. On the job training for labor after recruit – On the job training is provided to the
bottom level employees. The new and less skilled labors are directly sent to the
field with the experienced ones and they learn as they work.
b. Establishment of Radha technical training institute for training prospect worker
– The organization has established its own training institute which will provide
training to the probable candidates. Also it attempts to enhance and correct the
technical skills of the labor force when necessary through this.
c. Worker interaction program with several other training institutes – The
organization believes in sharing information with the other stakeholders. It has
been making effort for interaction of workers with the several training institute
so that best practices are shared and productivity is enhanced.
d. Skill training based on need assessment - The organization conducts the need
assessment of all the positions and relevant training is imparted to them. This is
however subjected for recommendation of the supervisors and later approved
by the respective Department Directors
5. Labor law compliance
a. A committee comprising labor, staffs and union representative “Shram
sambandha samiti” – A staff relation committee has been formed as per the
Labor rules and it regularly organizes meeting to discuss the various issues
related to the welfare of the employees.
b. Medical Insurance for labor and staff working in a field / Site – All the labor and
staff working in the field are insured.
c. Working hours defined as labor law – The organization has been ensuring all the
staff works as per the rules of the organization. It ensures no worker works for
more than 8 hours a day or 48 hours in a week in normal pay. It gives Overtime
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
to those who work for extra hours. Overtime is done on rotation basis providing
ample opportunity for the interested candidates to make more money.
d. Bonus defined as 10% of total income revenue generated kept for employee
welfare – The organization keeps a side 10% of the net profit as per for Bonus to
the employees. This has been kept under the strict supervision of a committee
that includes all level of workers by themselves.
e. Legally registered 3 unions affiliated to different political institutions – The
organization believes in freedom of association and has allowed 3 unions
affiliated to different political parties to exercise their right. Besides they have
identified scheduled meetings once a month for interaction.
6. Employee Retention policy
The organization has been providing various benefits/policies relevant to the staff as a
Employee Retention strategy:
a. Loan for Motorbike for higher office professional (Engineers, accountants,
managers etc). This policy binds them for the tenure that they are eligible for
purchase and payment for the Motorbike loan. The amount per month is around
800 Rs and within 4 years time we can take away the motorbike. Besides
insurance and servicing charges are paid by the office on monthly basis.
b. Minimum contract period of 1 year: New joiners have to work for at least 1
year from the date of joining.
c. Movement and learning opportunity within several local and international
sites that provides ample opportunity to improve and upgrade their skills. Also
since there is this whim of going global. In the mean time RSEW is preparing its
staff for global acceptance and moving staffs to its international Sites.
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
d. Recommendation for opportunity for foreign employment. For betterment of
labor, RSEW’s training institute also prepares labor for foreign employment as
well and in the meantime processes itself.
7. Performance appraisal
The organization believes in monitoring performance and suitable rewards are awarded
to all the deserving staff. The details of the Performance Appraisal system are follows:
a. Three time a year a questionnaire submission from Supervisors as allocated by
the Administration Manager
b. Aggregate marking of all the year appraisal system added for final once a year
general appraisal
c. No holds for performance measure evaluation. Entitled for evaluation in every
opportunity.
d. Levels segregated in terms of hierarchy (officer, sr. officer, and manager) and
job type (contract, temporary, and permanent) for improvement which is clearly
negotiated.
e. Within the working tenure, chance of promotion in terms of facility, position or
type is also kept option.
f. Employee of the Year- Staff, labor
8. Other HR related practices
The various employee communication and involvement strategies and Hr systems are
followed in the organization. Some of the initiatives are as follows:
a. Special Dress provided for labor
b. Insurance cover for employee working in injury/accident prone zone
c. Extra benefits added for staffs going to difficult places as a job Site
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
d. Socialized events. Biswakarma puja, Tihar, Dasain, Lunch time at a office
canteen.
e. Once a year Picnic with office payment
f. May 1st celebration
g. Once a year a recursion cum brainstorming (administrative Staffs) at someplace
away from valley as brainstorming and discussion forum
h. Provision of doctor visit every weekend for a free general checkup. However any
checkup beyond that needs to be done by the employee themselves.
i. Twice a year vaccination scheme for tetanus.
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
Recommendations on HR practices
Following recommendation can be provided to Radha Structure and Engineering Works Pvt.
Ltd on the basis of our understanding and nature of the environment they are working on.
Though RSEW do not have their separate Human Resource Department, we do also feel that it
might not be necessary for incorporating a separate department. The current structure seems
sufficient. This is due to the fact that the supervisors are empowered to look after their
counterparts and conduct the Human Resource Plan. However this is strictly monitored by the
HR & Administration Manager. Also that there is not much of administrative task, He /She can
surely contribute to the requirement which he has been doing accordingly at present.
1. Office Structure
Plan the manpower numbers based upon the requirement of the business and
tabulate the same in the following manner so that reviewing the same is done in
efficient manners
M1 M2 M3 M4 M5 M6 Administrative
StaffLabor Total
Sanctioned
On Roll
Gaps
2. Recruitment and hiring
a. Develop manpower database for different positions in the organization so that
it’s very easy to hunt for the suitable talents
b. Develop Process Maps by defining every steps to be followed and ensure that
the recruitment process adhere to this so that there is uniformity in the system
| Recommendations on HR practices 14
Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
c. Specific test can be designed so that highly deserving and capable worker are
hired. This seems necessary due to hectic and pressurized working environment.
3. Training and development
a. Develop Job Description for all the positions in the organization with skills
required to perform the job efficiently.
b. Map every staff with the job required to perform the job as per the Job
Description and find out the gaps in the skills. Consolidate the gaps and develop
Training Plan.
c. Prepare a training Calendar and ensure that 90% trainings are conducted as per
the Training Calendar.
4. Labor law compliance
With the help of a Legal Consultant develop a Compliance checklist and review
the same every month so that all the statutory requirements are complied with.
5. Employee Retention
a. Conduct Talent Management Study: Evaluate all the staff in terms of
performance in their respective job and their potential to handle higher jobs.
Based upon the same, develop suitable strategies based upon the result. E.g.:
i. High on Performance and High on Potential
Develop career plan for them and reward them with promotions and
other benefits
ii. High on Performance and Low on Potential
Ensure the benefits and rewards are awarded to these staff
iii. Low on performance and high on Potential
Job rotation and counseling
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Term Paper (Project ) for HRM [HR AUDIT OF RADHA STRUCTURE AND ENGINEERING WORKS]
iv. Low on performance and low on potential
Counseling and if it persists plan for their exit from the organization
b. Develop Succession Planning for all the key positions in the organization
6. Performance appraisal
a. Ensure that World Class performance appraisal system is institutionalized into
the system like 360 degree performance appraisal system
b. Include skill assessment in the performance management system
c. Ensure that the objective for the coming year is discussed and accepted by both
the appraiser and appraisee while performance the Performance Appraisal.
d. Ensure the performance indicators are also agreed by both the appraiser and
appraisee.
e. It’s always better to link the performance with the salary so that there is
motivation to perform better
7. Other HR related recommendations
a. Develop Hr Policies and HR Vision/Mission for the organization
b. Link Hr Plan with the Business Plan
c. Conduct HR Audit and find out where the HR Department should be focusing on
d. Conduct Employee Satisfaction Survey and work towards bridging the gaps
| Recommendations on HR practices 16