hr practices in fabrication company

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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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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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


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


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


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.

| Introduction 7


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

| Current HR Practices 8


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.



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



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.



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



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.



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


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



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


hr practices in fabrication company

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