introduction to human resourse

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Introduction

INTRODUCTION TO HUMAN RESOURSEMANAGEMENT: -

Human resources plays vital role in modern economic scenario of any

country. Fast global and technological development have made todays

business environment highly uncertain and chaotic. Organizations are

seeking newer ways to promote their adoptability to the complexities of

changed scenario so as to survive and proper. Globally, organizations

are striving to realize sources through strategic management of human

resources. Human beings working in the organization are very

important for the success of any organization, because they are the

living resources and other resources are dead in nature like machine,

material and money. Therefore now a day much more attention is

required towards continuous development of human resources. All the

great achievement and success can be possible by the enlightened

manager in modern organization with the application of human resource

development techniques.

In an industry and organization, the employer and employees are two

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wheel of a progressive organizational vehicle which relates to human

resource and industrial relation practice in an organization. Today,

business growth is very complex and dynamic. In todays world

business has to face with a number of challenges. The important area

like market, technology, composition work force, attitude & expectation

of people are changing very rapidly. Due to all these factors, an

organization has to take a fresh look at their different functional areas to

modify & improve the kind & style of management so as to reach its

goal easily. There has to be continuously & effectively modification in

the management policies & practices. Human resource management is a

part and parcel of the corporate management; it is entrusted with the

areas of management such as recruitment, placement, training and

development, job description, performance appraisal, management

development, wage and salary administration, motivation safety,

medical care, industrial relation and collective bargaining and to draw a

sound personnel policy. Organizations are made up the people and

function through people. Without people, organization cant exit. The

resource of men, money, materials and machinery are collected,

coordinated and utilized through people. The resources by themselves

cant fulfill the objectives of the organization. They need to be united

into a team. It is through the combined efforts of people that material

and monetary resources are effectively utilized for the attainment ofcommon objectives. Without united human effort no organization can

achieve its goal. All the activities of an organization are initiated and

completed by the human resources management.

According to Warwickbusiness houses are made or broken in the long

run not by market or capital or equipment but by men. It implies that

of all our resources manpower is the only resource, which does not


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depreciate with the passage of time. Today labor in the front page

news throughout the world.

So people have always been central to organization but their strategic

importance is increasing in todays knowledge-based industries. In the

Indian scenario, HRM is developing fast due to many reasons.

Multinational corporations are resorting to Human Resources Practices.

Now states are interested in encouraging a large-scale use of HRM

interventions to build organizational culture; conducive to efficiency &

productivity. When the people are properly motivated, even ordinary

people can deliver extraordinary results. From an organizational

standpoint, good HR practices help in attracting and retaining talent,

train people for challenging role, develop their skills and competencies,

increase productivity and profit and enhance standard of living. As a

whole, best management of human resource is essential of growth and

prosperity of the organization.

OBJECTIVES OF HRM:

The principal objectives of HRM may be listed thus:

(a) To help the organization to reach its goal:

HR department, like other organization, exists to achieve the

goal of the organization first and if it does not meet this purpose,

HR department (or for that matter any other unit) will wither and

die.

(b) To employ the skills and abilities of the workforce

efficiently:

The primary purpose of HRM is to make peoples strength is


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productive and to benefit customer, stockholders and employee.

(c) To provide the organization with well trained and well

motivated employees:

HRM requires that employees be motivated to exert their

maximum efforts, that their performance can be evaluated

properly for results and they be remunerated on the basis of their

contribution to the organization.

(d) To develop and maintain a quality of work life:

It makes employment in the organization a desirable, personal

and social situation. Without improvement in the quality of work

life, it is difficult to improve organizational performance.

(e) To communicate HR policies to all employees:

It is the responsibility of HRM to communicate in the fullest

possible sense; tapping ideas, opinions and feeling the

customers, non-customers, regulators and other external public

as well as understanding the views of internal human resources.

(f) To be ethically and socially responsive to the needs of

society:

HRM must ensure that organizations manage human resource in

an ethical and socially responsible manner through ensuringSSIMS, TumkurPage no.

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compliance with legal and ethical standards.

IMPORTANCE OF HRM:

People have always been central to organizations, but their strategic

importance is growing in todays knowledge based industries. An

organizations success increasingly depends on the knowledge, skill and

abilities (KSA) of employees, particularly as they help establish a set of

core competencies that distinguish an organization from its competitors.

With appropriate HR policies and practices an organization can hire,

develop and utilize best brains in the market place, realize its professed

goals and deliver results better than others.

SCOPE OF HRM:

The scope of HRM is very wide. Research in behavioral sciences, new

trends in managing knowledge workers and advances in the field of

training have expanded the scope of HR function in recent years. The

Indian Institute of Personnel Management has specified the scope of

HRM thus:

PERSONNEL ASPECTS: This is concerned with manpower

planning, recruitment, selection, placement, transfer, promotion,

training and development, lay off and retrenchment, remuneration,

incentives, productivity, etc.

WELFARE ASPECTS: It deals with working conditions and

amenities such as canteens, creches, rest and lunch rooms, housing,

transport, medical assistance, education, health and safety, recreation

facilities, etc.


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INDUSTRIAL RELATION ASPECTS: This covers union-

management relations, joint consultation, collective bargaining,

grievance and disciplinary procedures, settlement of disputes, etc.

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COMPANY PROFILE

A jewel in the crown

NOW A NAVARATNA COMPANY

With a consistent track record in capacity utilization,technology absorption, quality assurance, export performance and

committed manpower, with excellent teamwork NALCO has emerged

as Indias leading Aluminium Company. NALCO has been contributing

significantly to the State and Central Government exchequers over the

years through increased production and consistent posting of profits.

With its second phase expansion, involving an investment of over

Rs.5000 crore which is nearing completion, the company is all set for

third phase expansion. Besides, plans are afoot for Greenfield projects

in countries like Indonesia, South Africa and Iran.

With time, all these remarkable achievements have translated

into another creditable title for NALCO, now a Navaratna Company

from 28th April 2008.


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NALCO presents its special gratitude to the Government of

India and Orissa for their continuous support and guidance through 28

yearlong journeys.

The vision to be a reputed global Company in the Metals and

Energy sectors is not far off.

1.1 DETAIL BACKGROUND OF NALCO:Following the discovery of large reserves of Bauxite ore in the

east coast and the preliminary project work done by Bharat Aluminium

Company Limited, NATIONAL ALUMINIUM COMPANY LIMITED

was set up as a Public sector enterprise under Ministry of Mines by the

Government of India in 1981 to implement one of the largest multi-

locational integrated Aluminium projects of the world with its ownCaptive Power Plant and Port Facilities. The technical collaboration of

Aluminium Pechiney of France, the support of Euro-dollar loan from a

consortium of International Banks and the special dispensations of the

Government of India and the Govt. of Orissa helped to implement the

project expeditiously within the budgeted cost of Rs.2408 crore.

In order to strengthen its business and increase market share,

NALCO has been pursuing expansion programmes on a sustained basis.

The first phase expansion was taken up in the year 2002 involving fresh

investment of 3900 crore. NALCO has taken over International

Aluminium Products Ltd. (IAPL), a wholly owned subsidiary of

NALCO w.e.f. March 2000 with the project cost of Rs.385 Crores

having capacity of 50,000 TPY of aluminium alloy coils sheets.


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Soon after the completion of the first phase expansion, the

company has launched its second phase expansion, commencing in

October 2004, which involves fresh investment of more than Rs 5000

crore. The project is nearing completion. The company is now planning

3rd phase expansion with an investment of Rs 6000 crore, which will

increase its production capacity.

1.2 PLANT LOCATION:

While the Corporate headquarters of your Company is located

at Bhubaneswar, the capital city of Orissa, its mining operation and the

manufacturing units are located at Damanjodi and Angul. Damanjodi, in

Koraput district of Orissa, is 550 km. By road to south of Bhubaneswar.

Angul is 160 km. From Bhubaneswar on north. It may be useful for you

to get some general information on Damanjodi and Angul which are the

main centers of your Companys activities.

Damanjodi :

Introducing Koraput, the Gazetter of India writes: Koraput

with the rolling mountains, undulating meadows, roaring rapids,enchanting waterfalls and terraced valleys leading up to verdant hills,

feasts the eye as few other districts can. Koraput with her golden

autumn and misty mornings of the monsoon months, her painted spring

and slumbering summer and her writer ranging from fierce to mild,

provides varieties of living in different seasons, which is rare elsewhere.

Here in Spring, nature and men vie with each other to make living


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joyous.

Damanjodi, where Nalco has established its Alumina Refinery

and a township, is one of the picturesque valleys of this beautiful

district, on the foothills of Panchapatamali hills. The plateau of

Panchapatmali, where the Bauxite mine of Nalco is located is connected

by a 16 km. long uphill road. Damanjodi is 12 km. from Simliguda, a

small town located on the National Highway No.43, that connects

Vajayanagaram of Andhra Pradesh with Raipur of Madhya Pradesh.

The Sunabeda township of Hindustan Aeronautics Limited is 18 km.

from Damanjodi. Koraput town, the Headquarter of district, is 36 km.

from Damanjodi. The nearest rail station at Vijayanagaram is at a

distance of 135 km. There is of course a passenger rail service from

Koraput to Visakhapatnam through the most enchanting hilly terrains of

Araku valley and Anantagiri. Damanjodi is also connected by bus

service from Berhampur, Cuttack, Bhubaneswar, Angul and

Sambalpur. The native population of Damanjodi mostly consists of

tribals. The important tribes in this area are Gadaba, Paraja, Kandha,

Koya & Sunki. The traditional occupation of the local population has

been cultivation and allied agricultural activities. Tribals here live a

simple and poverty stricken life, deeply rooted to their primitive

customs and traditions. The month long celebration of Chaitra Parva in

April-May is one of the most important festivals of local tribal

communities. Here the weather is very pleasant round the year with

maximum and minimum temperature ranging between 340 and 300 C.

The rains during June to September could be a bit irritating The

average rainfall during the year is above 1624 mm.

Nalco Township at Damanjodi is a well-planned one. Apart

from 2968 dwelling units, the township has market complexes,


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community centers, clubs, swimming pool, playgrounds, parks, a 30

bedded well equipped modern hospital, guest houses, trainees hotels

etc. The township has its own Post Office, Police Station and Banks.

There is an English medium school offering CBSE courses. This school

is run by Delhi Public School Society. An Oriya medium high school is

run by Saraswati Vidya Mandir. Both the schools, because of their

facilities and standard of teaching, have become attractions even to

outsiders.

Nalco Nagar, Angul:

Nalco Nagar is situated within 5 km. of Angul town. Angul

was once a feudal state with a chequered history of palace intrigues and

wars with neighboring states. In 1847 the state was confiscated on

account of the rebellion against the British by the then ruling chief

Somanath Singh. Thus, Angul passed under the British rule earlier

which spread to many other parts of Orissa.. Angul became a district

headquarter in 1994.

Angul today is a fairly big and bustling town on the National

Highway No.42 which is the main Highway connection Bhubaneswar

with Raipur (MP), Sambalpur, Sundargarh & Rourkela. Nalco has

established its Smelter Plant, the Captive Power Plant and its township

close to the National Highway. The place is easily accessible from

Cuttack and Bhubaneswar by road and rail.

Local population, till the advent of industries, basically

depended on agriculture for livelihood. Today in the vicinity of Angul a

large number of industries have come up. The other important industries


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in and around this place are Fertilizer Plant of FCI, Heavy Water Plant

of Atomic Energy Commission, Talcher Coal Mines of Mahanadi

Coalfields Limited and two Thermal Power Plants of NTPC.

Establishment of Nalco and other industries have brought about

accelerated growth to the trade, commerce and ancillary industries in

the district.

The Nalco Township known as Nalco Nagar is modern and

well planned. In addition to 3679 dwelling units and trainees hostel

with 403 rooms, Nalco Nagar has many civic facilities like community

centers, clubs, stadium, swimming pool, market complexes etc. Your

Company has established here a 50-bedded hospital with ultra modern

facilities. As in case of Damanjodi, there is an English medium Delhi

Public School and an Oriya medium Saraswati Vidya Mandir offering

excellent educational facilities to the employees children upto 10+2

standard.

Angul has comparatively a dry climate. The summer months

can turn uncomfortable and very hot, sometimes with the mercury

touching 470 C.

It is important to note that due to the establishment of the

Company, its plants and townships, many local families were displaced

or lost parts of their lands in Damanjodi and Angul sectors. The

Company has paid adequate compensation to the affected families at the

time of acquiring the land and further as a matter of social obligation,

has been providing employment and business opportunities to the

members of the displaced families on preferential basis.

The Company has also been implementing various periphery

development programmes at considerable cost to improve the quality of


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All the corporate activities are done at its Corporate Office at

Bhubaneswar, the capital city of Orissa.

Bauxite Mine:


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A fully mechanized open-cast mine of 48,00,000 tpa, on

Panchpatmali hills of Koraput district in Orissa, serves feed-stock to the

Alunmina Refinery at Damanjodi, located 16 km downhill. The

transportation is done through a 14.6 km long single flight, multicurve,

cable belt conveyor of 1800 tph capacity. The mining capacity is being

expanded to 63,00,000 tpa.

Area of Deposit : 16 sq.km

Resource : 310 million tones

Ore quality : Alumina 45%, Silica 2%

Mineralogy : Over 90% gibbsitic

Over burden : 3 mtr (avg.)

Ore thickness : 14 mtr (avg.

Alumina Refinery:


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The 15,75,000tpa energy-efficient Alumina Refinery, havingthree parallel streams of equal capacity, os located in the picturesque

valley of Damanjodi. The Refinery provides alumina to the Companys

Smelter Plant at Angul and exports the balance alumina to overseas

markets through Visakhapatnam Port. Presently, it is being expanded to21,00,000 tpa capacity.

Smelter Plant :

The 3,45,000 tpa capacity Aluminium Smelter, located at

Angul in Orissa, is based on advanced technology of smelting and

pollution control. Its capacity is being further expanded to 4,60,000 tpa.

Smelter Plant has three main processes. Electrolytic reduction (Pot

line), Anode Plant (Carbon Area) & Cast House.


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Pot Lines:

The main process area of Smelter is the Pot line. At Nalco

Smelter, there are three pot lines. Each pot line has 240 pots. Fourth pot

line is under commissioning. Out of 240 pots of fourth pot line already

120 pots have already commissioned, rest pots will be commissioned by

this year-end.


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In

Production of Aluminium in Electrolytic cell (Pot)

D.C.

1360Carbon Area:

It consists of mainly three areas namely 1.Anode Paste Plant, 2. Anode

Baking Furnace, 3. Anode Rodding Shop. In the green anode plant

carbon paste is manufactured from calcined petroleum coke and coal tar


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pitch. The formed anodes are baked in the baking furnaces to obtain

necessary mechanical strength and electrical conductivity. The baked

anodes are sent to Rodding shop where the anodes are fitted with stem

bracket assembly.

Cast House:

The molten metal tapped out from pots periodically is sent to the cast

house where it is cast into Ingots, Sow ingots, Wire rod, Billets, strips.

Strips are further rolled into sheets in the Rolling plant.

Rolled Products Unit :

After acquisition and merger of International Aluminium Products

Limited, Nalco has started production from this 50,000 tpa plant. This

Rolled Products Unit is presently producing standard coils and sheets.

Besides, it has facilities to produce foil stock, fin stock, cable wrap

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The salient features of the Plant include :

180 KA cell technology

Fume treatment with dry-scrubbing system

Manufacturing of Carbon anodes, Bus bars, Anode stems

etc.

Integrated facilities for manufacturing Ingots, Sows, Billets, Wire

Rods, Strips and Rolled Products.

Captive Power Plant:

Close to the Aluminium Smelter at angul, a Captive Power Plant of 960

mw capacity has been established for firm supply of power to the

Smelter. The coal demand of the Plant is met from a dedicated mine of

Mahanadi Coalfields Limited. The Plant is also connected with the State

Grid for sale of surplus power. The ongoing expansion shall raise its

capacity to 1200 mw.


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Port Facilities:

On the inner harbour of Visakhapatnam Port on the Bay of Bengal,

Nalco has established mechanized storage and ship handling facilities

for exporting alumina in bulk and importing caustic soda. This facility

can handle ships upto 35,000 DWT.

Ship loading rate : 2200 tph

Alumina storage : 3 x 25,000 tonnes

Besides, Nalco exports from the ports of Paradeep and Kolkata.

1.3 NALCO PRODUCTS:

Alumina:

1. Calcined Alumina

2. Alumina Hydrate

3. Speciality Aluminas & Hydrates


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4. Detergent Grade Zeolite

Aluminium Metal:

1. Standards Ingots (each approx. 20 Kgs.)

2. Sow Ingtos (each approx. 750 Kgs.)

3. Wire Rods (in coil form 9.5mm dia weight approx. 2MTs.)

4. Alloy ingots (each approx. 10Kgs.)

5. Billets (in four sizes 127mm, 152mm, 178mm, 203mm dia)

6. Cast Stripes (in 1600mm width max. nominal gauge 6.35mm)

7. Cold Rolled Sheets

ALUMINIUM SOW INGOTS AluminiumStandard Ingots

BilletsWIRE RODS


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Nature of Business : Mining and Manufacturing in the Alumina Sector.

Other area of Business

System

: Captive Power Plant, Rail Transport

N.B.: Companys has its own port facility at Vishakapatnam.

Landmark Events:

1 Discovery of Bauxite in the East Coast 1975

2 Preparation of NALCOs feasibility report July 19793 Investment decision by the Govt. Jan 1980

4 Indo-French Collaboration Agreement Jan 1982

5 Formation of the Company Jan 1981

6 Foundation Stone Laid by Late Smt. Indira Gandhi March 1981

7 Signing of Major Euro-Dollar Loan Agreement Feb 1982

8 Civil Work Started Feb 1982

9 Commissioning dates:

Port Facilities Sept 1985

Bauxite mines Nov 1985Alumina Refinery Sept 1986

Captive Power Plant Sept 1986

Smelter Plant Mar 1987

10 Commencement of Sale of Aluminium May 1987

11 Commencement of Alumina export Jan 1988

12 Commencement of Aluminium export Sept 1988

13 First mines safety awards 1988

14 First CAPE XIL Export Awards 1988

15 London Metal Exchange Registration May 198916 Dedicated to the Nation by Late Shri Rajiv Gandhi June 1989

17 Star Trading house status Jan 1992

18 Indira Gandhi Rajbhawa Award 1993, 1995

19 ISO 9002 Certificate :

Alumina Refinery Nov 1994

Smelter Plant Feb. 1995

Captive Power Plant Dec. 1995

Bauxite Mines Jan 1996

20 Indira Priyadershini Vikashmitra Award 1994


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21 ISO-14001 Certificate for environment Management

system of Bauxite Mines

1996

22 ISO-14001 Certificate for environment Management

system of Alumina Refinery

1997

23 FICCI Award for population control and Environment 1996-9724 Excellent Public Sector Enterprise Award 1996-97

25 Environment Protection Award by IIEE 1997

26 Best Occupational Health Award by Govt. of Orissa 1998

27 Gem Granite Environment Award 1997-1998

28 First EEPC Export Award 1998-1999

29 Indira Gandhi Paryavaran Puraskar by Govt. of India 2000

30 Rajbhasa Shield by Ministry of Mines 2001

31 FIMI Environment Award 2000-2001

32 Dedication of Mines & Refinery Expansion April, 200233 FIEO Niryat Shree Award 2002-2003

34 Completion of 1st Phase Expansion 2004

35 Five Star Expert House Status 2005

36 Top Expert Award of CAPEXIL for 2oth year in

succession

2007

37 NALCO achieves Nava Ratna Status April, 2008

1.5 MANAGEMENT OF NALCO:

NALCO is managed by a Board of Directors appointed by the President

of India. The Board consists of maximum 18 Directors including the

Chairman-cum-Managing Director of the Company. Apart from CMD,

there are 5 functional or full time Directors heading Project &

Technical, Personnel & Administration, Commercial, Finance and

Production disciplines. There are 2 senior Govt. officials nominated to

the Board as Directors by the Government of India. Besides, there are

non-official Directors in the Board.

Thus, the Board of the Company is a pool of highly experienced and

outstanding professionals drawn from various fields of specialization.

The Board enjoys maximum possible operational autonomy, consistent

with the overall corporate objectives, basic policies and programmes


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with a view to achieving optimum utilization of its resources. Subject to

the provisions of the Indian Companies Act, the Memorandum and

Articles of Association, Memorandum of Understanding signed with the

Govt. and also subject to policies formulated by the Board of Directors,

from time to time, the Chairman-cum-Managing Director has full

powers to sanction expenditure or to deal with other matters for

effective functioning of the Company.

The managements control system is based on delegation of authority

and individual accountability for results. The responsibility and

authority to take decisions on various matters are delegated by the

Chairman-cum-Managing Director to different levels in the

management hierarchy. For personnel matters such as appointments,

confirmations, promotions, discipline, transfer, grant of various

benefits, leave etc. powers have been delegated to different levels of

executives, in conformity with the principles and policies of the

management. The schedule of delegation of powers is a published

document available for reference, which is subjected to review, from

time to time, to incorporate necessary changes.

1.6 VISION, MISSION & OBJECTIVES:

VISION

To be a reputed global Company in the Metals and Energy sectors.

MISSION

To achieve growth in business with global competitive edge

providing satisfaction to the customers, employees, share holders and


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community at large.

OBJECTIVES

To maximize capacity utilization.

To optimize operational efficiency and productivity.

To maintain highest international standards of excellence in

product quality, cost efficiency and customer service.

To provide a steady growth in business by technology up

gradation, expansion and diversification.

To have global presence and earn foreign exchange.

To maintain leadership in domestic market.

To instill financial discipline at all levels for achieving cost

and budgetary controls, optimize utilization of working capital

and effective cash flow management.

To maximize return on investment.

To develop a strong R&D base and increase business

development activities.

To promote a result oriented organizational ethos and work

culture that empowers employees and helps realization of

individual and organizational goals.

To maximize internal customer satisfaction.

To foster high standards of health, safety and environment

friendly products.


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To participate in peripheral development of the area.

1.7 ENVIRONMENT & QUALITY POLICY:

ENVIRONMENT POLICY:

In recognition of the interest of the society in securing

sustainable industrial growth, compatible with a wholesome

environment, Nalco affirms that it assigns high importance to promotion

and maintenance of a pollution free environment in all its activities.

Keeping the above in view, Nalco has set the following objectives: -

To use non-polluting and environment friendly technology in all

industrial activities.

To monitor regularly air, water, land, noise and other

environment conditions and pollutants fall-outs.

To constantly improves upon the standards of pollution control

and provide a leadership in environment management.

To develop among the employees an awareness of environment

responsibilities and their adherence to sound environment

practices.

To work closely with Govt. and local authorities to help prevent

and minimize adverse consequences of the industrial activities of


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the environment.

To comply with an applicable laws governing environment

protection through appropriate mechanism.

QUALITY POLICY:

Quality will form the core of our business philosophy. Meeting the

needs and expectations of the customers and consistently improving our

systems and work ethos will be our chosen path in achieving excellence

in business and fulfilling our social obligations.

Guideline Principles: -

To ensure a healthy return environment by maximizing

operational efficiency, capacity utilization and productively.

To continually improves and redesign systems process and

practices in order to ensure error prevention and improve

response time.

To adopt internal customers focus as a means to external

customers satisfaction.

To treat human resource as the key to quality excellence and

ensure development involvement and satisfaction of employees.

To ensure high quality of inputs through proactive interaction

with suppliers.

To meet obligations towards the society as a responsible

corporate citizen.

To provide value of money to all share holders.

To follow ethical business philosophy at all ties.

Commitment: -


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NALCO strictly adheres to the quality policy and objectives of the

company in letter and spirit and is committed to continuously strive for

their fulfillment.

1.8 PERIPHERY DEVELOPMENT IN NALCO:

As a corporate policy, NALCO allocates 1 percent of its net profit of the

year for social sector activities of the succeeding year, which works out

to around Rs 140 crore so far. Out of this, 40 percent that is Rs 56 crore

is earmarked for Angul sector. This amount is spent primarily for health

care, communication, water supply, education, veterinary services,

social forestry, sports and cultural activities. Also NALCO provides

employment facilities to the land displaced persons.

NALCO had spent Rs.28.75 crore for periphery development in Angul

sector so far and projects worth Rs 11.19 crore were either completed or

under progress. Besides, another Rs 16.05 crore had been allocated for

various new projects.

Nevertheless, since NALCO is performing well, the expectations of

public were also increasing day by day. Despite the best of support from

district administration, the local villagers were taking recourse to

agitational means, like Rasta Roko and Rail Roko, which were greatly

affecting the overall business of the company.

1.9 HRM PHILOSOPHY & HUMAN

RESOURCES:

HRM Philosophy:

In order to fulfill the objectives of the Company and its commitment


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towards its employees and the society including environment

protection, NALCO has developed various HR practices in its various

units.

These practices are based on the sound HRM philosophy which are as

under:

To attract competent personnel with growth potential and

develop their skills and capabilities in a congenial work and social

environment through opportunities for training, recognition, career

advancement and other incentives.

To develop and nurture favorable attitudes among the

employees and do obtain their best contributions to the organization by

providing stable employment, safe working conditions, job satisfaction,

quick redressal of grievances and through good pay and welfare

amenities commensurate with the Companys capacity to spend and the

Governments guidelines.

To foster fellowship and sense of belongingness among all

sections of employees through closer association of employees with the

management and by encouraging healthy trade union practices.

Human Resources :

There are 7461 persons possessing a variety of skills, qualifications and

competence. Starting with a core group of 262 employees in 1982, the

progressive growth in manpower has taken place in a planned manner,


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matching the needs of the different stages of the project. Present

strength of 7461 as on March, 2009 is close to optimum requirement

against existing capacity.

Composition of Human Resources :

Executives : 1839

Supervisors : 851

Skilled & Highly Skilled : 3668

Unskilled & Semiskilled : 1103

Composition of Human Resources

Executives

Supervisors

Skilled & Highly Skilled

Unskilled & Semiskilled


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BRANCHES OF

NALCO


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REVIEW OF THE LITERATURE

Horowitz et al. (2002), provide one of the most definitive pieces of

research on the subject of human resource challenges in mergers and

acquisitions. Their article identifies the attributes of organizational

culture and human resource practices required for successful transitions

in mergers and acquisitions, and analyses the implications of culture

types for inter-organizational combinations. They cite the importance of

information when dealing with employee turnover during a merger or

acquisition, and also the importance of giving special attention to

management style and organizational integration in successfully

managing mergers and acquisitions. Another recent academic piece to

touch on the subject was that of Signorovitch (2004). This article

discussed how to successfully deal with a change in leadership in a

company, and in some cases, those leadership changes were

accompanied by other changes, such as reorganization, acquisitions or

mergers. He claimed that it is also not that difficult to get some early

insights into the new leader from colleagues in the organization,

especially in the human resources department, due to that departments

necessary close association with the change.

Rozhan Bin Othman, June M.L. Poon Employee Relations; 22: 5 2000;SSIMS, TumkurPage no.

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pp. 467-480

The link between business strategy and human resource management

(HRM) practices has received considerable attention from researchers.It is generally believed that integrating strategy and HRM will result in

positive organizational outcomes. The empirical evidence for the

strategy-HRM relationship is, however, still inconclusive

RESEARCH DESIGN

3.0 Research Design

A Research design is the specification of methods and

procedures for acquiring the information needed. It is the overall

operational pattern or network of project that stipulates what

information to be collected.

For the purpose of this study, research design consisted of setting

through existing literature and thus making theoretical background for

the study. It constitutes the blue print for the collection, measurement

and analysis of data.

3.1Title of the Study:

A Study on HRM Practices At NATIONAL ALUMINIUM

COMPANY LIMITED (NALCO), SMELTER PLANT ANGUL,

ORISSA.

3.2 Statement of the problem:

Human Resources plays vital role in any Organization. This helps

Company to improve the skills needed for better development.


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To study the Human Resource practices with special reference to

NALCO. Surveys are conducted to know the effectiveness and

loopholes is organization.

3.3 Objectives of the Study:

The training programme has the following objectives:-

a. To acquire an overall idea about the organization, its

structure, practices, history and present status.

b. To have a better knowledge about the real work

situation of the Organization.

c. To gain knowledge about the structure and function

of personnel and administration dept. of the

organization.

d. To study the statutory and non-statutory welfare

practices adopted by the organization and get a

practical knowledge in these areas.

e. To study the wage and salary administration.

f. To study the workers participation in management.

g. To know the recruitment procedure of NALCO.

h. To study about the Industrial Relation of NALCO.

3.4 Scope of the study:


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The scope of the study is wide as it deals with the human

resource practices and the whole aspect is collected through

unstructured interview with the officers of department of HRD and

other departments and also other such as clerks, executives, non-

executives and staff of the trade unions. The whole study is confined to

NALCO (ANGUL).

The main goal of the study is to know how industrial unit is

organizing and utilizing its manpower. The present study aims at

making an elaborate discussion of different function inside the smelter

plant NALCO at Angul and collect information about: -

Human resource planning.

Organization structure and function of HRD

dept.

Welfare.

Promotion.

Recruitment.

Training and development.

Trade unions.

Canteen.

Industrial relation.

3.5 Limitations of the Study:

During this period the following difficulties were found: -

1. The first and foremost matter was the time factor.

Within a limited period of time, it was not possible to

study the various aspect of the organization details

and not possible to collect data from every corner.


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2. Employees were apprehensive of survey of data and

therefore hesitated in disclosing the data regarding

certain factors dealt in the study.

3. As the executives were busy with their work, they

could not afford much time for discussion.

4. It is very uncomfortable and strange on the part of

the trainee to interact with the staff initially because

they are unknown to us. Therefore I feel few days

comfortable and then uncomfortable and the rest

time become very short and insufficient to gain all

the knowledge about the organization.

3.6 Research methodology:

This is a systematic way to solve the research problem and it is

important component for the study without which the researcher may

not be able to obtain the facts and figures of the employees.

The following shows the methodology of the study.

A.Types of study:

It is a descriptive study method.

B.Data sources:

Data for the study consists of both primary and secondary

data.

Primary data:

Observation and interview both methods were adopted for

collecting the information under primary source. Primary data is

collected by interview backed up by structured questionnaire from the

targeted employees.


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Periodically visit to the Organization and interviewed with the

management. Official workers and trade union leaders and staff all are

primary sources.

Secondary data:

These informations were collected from various booklets,

journals, official documents, records, filer, Annual administrative

reports of different section monthly magazines, companys key book,

Nalco Diary, Training institutions project reports of Nalco all

informations under secondary sources. These helped the researcher to

have an idea about the Organization and its activities.

C.Data collection tools:

The data for the study has been collected with the help of the following

tools:

Questionnaire

Personnel interview

Observation method.

Questionnaire consisted of closed and open ended with multiple

choices, scaling techniques, etc.

Personal interview:

In addition to questionnaire, personal interview was also conducted to

know the opinion of training and development in an organization.

D.Sampling process and Sample size:

A sampling is a definite plan for obtaining a sample from their

population; it refers to the techniques adopted in selecting items for the


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sample. Sampling design includes,

a. Sample units

b. Sample size

c. Sampling technique.

Sample units:

A sample unit for the study consists of the employees and managers of

various organizations. The employees belong to various departments.

Sample size:

Sample size of the study consists of 40 employees

and 10 Managers of HRD and from different

departments.

Sampling technique:

Sampling can be classified into probability and non-probability

sampling. But in this study, non-random convenient sampling technique

has been used for the purpose of arriving at the sample size.

E. Statistical tools for data analysis and

interpretation:

Using percentages and averages, data analysis has been done. On

the basis of tables, the facts are presented in the form of pie charts, bargraphs, etc. The analysis of the data helps to identify the ways and

means of the solutions to the problems.

Period of the study:

The data collection took about 60 days during the month of February

and March 2010.


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Geographical area of the study:

The present investigation on the human resource management

undertaken in National Aluminium Company Limited, Orissa. The

measures confined to the employees of NALCO only. The period of

study is 8 weeks in the organization with in Human Resource

Management Department.

ORGANIZATIONAL REVIEW

EXISTING HR POLICIES IN NALCO

4.1 HR Policies & Innovations: -

HR Policies are needed in any organizations, as the company is running

as worldwide organizations. HR of an organization is its important and

flexible assets in NALCO.

HR PHILOSOPHY

1. To attract competent personnel with growth potential and develop

their skills and capabilities in a congenial work and social

environment through opportunities for training, recognition,

career advancement and other advancement.


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2. To develop a nurture favorable attitudes among the employees

and to obtain their best contributions to the organization by

providing stable employment, safe working condition, job

satisfaction, quick redressal of grievances and through good pay

and welfare amenities commensurate with the companys

capacity to spend and the govt . guidelines .

3. To foster fellowship and self belongingness among all sections of

employees through closer association of employees with the

management and by encouraging healthy trade union of practices

HRD POLICY

NALCO believes that:

1. Human resources are the most important assets of the company.

2. While all other assets will depreciate with time, human resources

alone can appreciate with time in terms of competence, skill and

expertise.

3. Human resources have unlimited potential capabilities.

4. Development of Human resources is therefore most critical if the

organization has to remain dynamic and growth oriented.

HRD SYSTEM

HRD sub-system like open forum, suggestion and reward scheme

(Sarjana) and mentoring scheme are being implemented in various

divisions of the company. As a part of instituting the learning

organization strategy, annul HRD meet is being organized to share

experience on innovative practices and experimented in a group of


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leading corporate.

GOAL OF HRD SYSTEM IN NALCO

1. To create an enabling climate that can be continuously identified,

nurture and utilize the capabilities of his employees.

2. To devote the capabilities of each employee in relation to his /her

present job or role.

3. To develop the capabilities of each employee as an individual.

4. To develop a mutually supporting relationship between each

employee and his/her superior

5. To develop team spirit and effective functioning of every

subsystem of organization.

6. To develop or overall health and self renewing capabilities in

the organization.

7. To develop collaboration among different sub-system of the

Organization.

HRD MECHANISM

The capabilities of each employee as an individual.

The capabilities of each individual in relation to his/her present

role.

The capabilities of each employee in relation to his/her expected

future roles.

The dynamic relationship between each employee and his or her

supervisor.


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The team spirit and functioning in every organizational unit

(Department, Group etc)

Collaboration among different units of the organizations.

There are some HR strategies policies of the company are as follows:

4.2 CONDUCT & DISCIPLINE

Employees conduct constitutes the image of the company. Conduct is a

dynamic process and in Nalco employees conduct and discipline are

most important for the organization and these are described below:

Employee shall at all time maintain absolute integrity and

devotion to duty

They shall not use their position directly or indirectly to secure

undue benefits such as employment or business contracts for any

member of their family, in their organization or in anorganization having dealings with their organization.

Employees shall not take part in politics or assist any political

movement or activity.

They shall not participate in demonstration.

They shall not participate in Radio / TV programmes or

contributes articles on a subject, which may have an adverse

bearing on the affairs of their company.

They shall not give evidence without permission of the authority

and while deposing evidence they shall not criticize their

company or the Government.


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They shall not accept gifts directly or indirectly.

They shall not give or take dowry.

They shall not communicate any official documents or

information to any person to whom they are not authorized to

communicate such document or information.

They shall not borrow money from or lend money to any persons

with whom they have official dealings.

They shall avoid habitual indebtedness.

They shall not contract another marriage while their wife or

husband is still living.

They shall not bring any outside influence to further their

interests in respect of matters penetrating to their service in the

company.

All the executives are required to furnish details of immovable,

movable and valuable properties in the prescribed format at the time

of joining and there after once in two years. If the total transaction in

shares, debentures, mutual funds schemes etc. exceed Rs.50, 000

during the calendar tear, the employee shall, immediately intimate

the competent authority about such transactions.

Misconduct

The term misconduct does connote a vast no. of actions. But without


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prejustice to its general meaning, the following illustrate some:

a) Habitual late attendance or irregular attendance or wilful absence.

b) Neglect of duty, including malingering or slowing down work.

c) Drunkenness, riotous and indecent behaviour.

d) Gambling within the premises of the establishment.

e) Acceptance of gifts, Lending and borrowing money.

f) Giving the false particulars for the purpose of employment.

g) Taking and giving bribes or any illegal gratification.

h) Damage to the property of the company.

i) Commission of any act which amounts to a criminal offence

involving moral turpitude.

j) Breach of any law relating to works and other rules or orders of

the company.

k) Abetment of or attempt at an act of misconduct.

l) Collection without permission of the authority of any money

except as sanctioned by any law of the land.

m) Theft, fraud or dishonesty in connection with the business or

property of the company.

n) Profession of pecuniary resources or property disproportionate to

the known sources of income.

o) Commission of any act amounting to sexual harassment of a

woman and / or women.


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Disciplinary Procedure In the interest of justice and equity, there are

established procedures to check the growth of discipline, misconduct

and subversive action in their company. Conduct, discipline & Appeal

rules of the company deal with disciplinary procedure in respect of the

executives.

Non executives employees are guided in the matters by the certified

standing orders. The penalties that can be imposed on an employee for

an act of misconduct may be minor or major.

4.3 MANPOWER PLANNING

Though NALCO is a Govt. Enterprise the manpower was introduced in

1983 when the company was in the project stage. The forecasting of

manpower requirements is with reference to the following broad

criterions:

Finding of job evaluation study.

Creation of new facilities with new equipments.

Change in designation or upgradation of existing system.

Expansion and diversification programmes.

With regard to manpower planning in the smelter plant of NALCO, the

Industrial Engineering Department plays a crucial role. It asses the

future manpower requirements i.e. forecast the manpower, taking into

account the present manpower projections required for fulfillment of the

projects. In smelter whenever any department feels the requirement of

any extra manpower for itself, then that department report the same to


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the Personnel department, where the personnel department asks to the

Industrial engineering department go thoroughly into the job description

and job specification and then presents its final report of requirement at

the personnel department.

4.4 RECRUITMENT

Recruitment is the process of locating and encouraging potentials to

apply for existing or anticipated job openings.

Recruitment, logically aims at (i) attracting a large number of qualified

applicants who are ready to take up the job if its offered and (ii)

offering enough information for unqualified person to self select

themselves out.

NALCO generally recruit manpower of experience. Recruitment of

people at different job was done, but to simplify this procedure the

employees recruitment is categorized by NALCO in 2 groups

1. Executives level of recruitment.

2. Non-executive level of recruitment.

Scope and Limitations: -

1. Their rules (prescribed in HR policies) are known as NALCO

Recruitment & Promotion rules for executives-1984.

2. Their rules shall apply to all executives posts including the E7

posts in company and will not apply to cares of promotion from

non-executives posts to executive post.

3. The post of executives is clarified as E0,E1, E2, E3, E4, E5, E6,SSIMS, TumkurPage no.

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E7, E8, E9 .

4. Rules not applicable to: -

Who are appointed on tennure basis/reappointed/given

extension after attaining super annuition age.

Whose terms of appointment provide to promotion after

competition of specified length of survive, period so

specified.

Who are on deputation/retain on to survive in otherorganization.

5. Rules not apply to any post whose appointment is made

internal Government.

Keeping in view all the rules all recruitment to different

posts is being internally organized by the corporate personnel

department in consultation which heads of units concerned.

SOURCES OF RECRUITMENT: -

Advertisement in press on all India Basis.

Through employment exchange.

Circulation within govt. dept. and other PSUS

Deputation from govt. dept. and PSUS.

Circulations of vacancies among internal candidates serving in

the next scale lower to the level of recruitment and had also

completed probation period with required qualification.

OBJECTIVES OF RECRUITMENT IN NALCO: -


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To provide a system for meaning executive posts in the complex

with persons having appropriate level of academic professional

qualification, skill, experience and motivation either through

recruitment from outside source or by promotion from within the

organization.

To provide executive with reasonable opportunity for

advancement consistently with their performance availability for

opportunity.

To provide for a system of equity fairness and objectives in

matters concerning recruitment and promotion of executives.

To ensure placement of the right men on the right job at the right

time.

In the case of recruitment the job specification is given per amount

importance, which carries the required qualification for various posts;the length of experience, age limit for post at various levels. The nature

of experience may be laid down with the approach of the competent

authority for various posts from time to time. It aims to attract appoints

for vacant job to chose right type of candidate.

4.5 SELECTION

Selection is general can be said as process of prediction. In other way,

it means establishing the best fit between the job requirements and the

candidates qualification in other hand.

CONSTITUTION OF SELECTION COMMITTEES: -

It is constituted by Appointing Authority. It mainly consists of at least 3

offices of appropriate states and functions as per post requirement.


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Other than this it comprises of following persons: -

I. GM as a chairman.

II. A representative from required areas.

III. A representative from HR department.

IV. A representative from ST/SC community.

V. State govt. representative as member.

In some exceptional cares, specialist from outside is nominated

within the selection committee.

SELECTION PROCEDURE: -

a) The requirement and selection shall be initiated by unit/office

concerned authorized to fill up the vacancies for non-executives.

b) The HR dept. screen and categories all applications/biodatas as

per notification/advertisement into those meeting the requirement

and those who dont. Then they will prepare a list of candidates

to be called for test/interview in consulting with representivedepartment.

c) The no. of candidates to be called for test/interview shall not

exceed 10 times the no. of vacancies.

d) Minimum standard of job specifications as notified can be raised

to minimize the no. of candidates and any relaxation reduction in

job specification can only be made with the approval of the


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authority higher than the appointing authority with consultation

of the concerned personnel department.

e) 50% of marks shall be considered of a candidate to be called for

interview. In case of SC/ST candidates the qualifying marks will

be taken as 40%.

f) For being eligible for the job specified the candidates must secure

the required qualifying marks in both written test and interview

(the qualifying marks for interview being the same for test).

g) If in case any candidate will found eligible to the specified job,

but is fulfilling the requirements for lower grade job provided: -

Candidate meets job specifications.

Candidates havent any objection to accept the

job/appointment.

The advertisement must include a provision for this.

Can be appointed in lower grade job.

h) The concerned HR department must avail the following

documents to the selection committee-

Copy of the ad /notification with specific requirements forthe post.

Bio-data of each candidate.

Annual amenment report and comments of forwarding

authority in case of in turn as candidates, wherever

applicable.


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Results of the test help prior to the interview.

Any kind of special information in relation with the

selection of the candidate.

The no. of posts being reserved for any category as

specified by the govt.

i) The concerned personal department will ensure continuity in

selection standards and starting salaries.

4.6 PLACEMENT

It means placement of write person at right job .The employee should

familiar with their work place, with group and with place where they

should work. After placement they discharge their duty.

4.7 PROMOTION

General Principles

Promotion from one grade to another shall be made by

Appointing Authority on the recommendations of Departmental

promotion Committee. Departmental Promotion Committee shall

meet to consider the cases of eligible employees for the

units/office concerned for filling up vacancies in the grades once

in a year during the month of June.

The Departmental Promotion Committee after taking into

consideration all relevant factors will recommend a panel of

names for promotion. Order of promotion will be released with

reference to the number of vacancies available with approval of

the Competent Authority on the 1st of July every year. However,

the panel so recommended will be valid for a period of one year.


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The vacancies arising during the period 1st July to 30th June are

required to be filled up, will be filled up from the approved panel

at the discretion of the competent authority.

All promotions with the non-executives categories shall be

considered on the basis of availability of vacancies at the time of

consideration. For this purpose vacancies will be computed in

relation to number of posts sanctioned in each category and

grade, cadre wise, in any department.

In this company, promotions of an employee solely depend on his/her

performance. If the employee achieves the given target within a given

specified period, then he or she gets the promotion. After 3years period

promotion for executive and non-executive is there but it is not

compulsory. For Non executives Trade test in specialized areas,

written test and viva are there for getting promotion For Executive

employees there is no test require, only it is on the base of performance

appraisal. From last one year they have to appear before selection

committees for promotion if their P.A is very good and outstanding.

Promotion Policy For Executive:

Nalco offers excellent growth opportunities to its employees consistent

with their seniority, qualification, performance and growth potential.

Here for non- executives promotion is by stagnation promotion and by

seniority basis.

Stagnation Promotion Executives at E4 level and above not

processing the prescribed qualification will be considered for stagnation

promotion to next higher grade in the entire service career after one

year.

Seniority Seniority is determined by the comparative merit position in


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the panel. i.e. both in case of initial appointment as well as in case of

promotion. In case of an executive joins after 2 months from the date of

issue of offer of appointments. Seniority shall be counted from the date

of joining the post.

Promotion policy for Non- executive:

A non- executive employee is required to complete a minimum period

of 3-year service in the existing grade by 30th June of the year to be

eligible for consideration of promotion. Promotion to the higher grade is

subject to the following ;

a) Passing the prescribed practical/ trade / written tests and personal

interview.

b) Satisfactory records of performance and conduct.

c) Availability of vacancies in relevant line of promotion.

Promotions are based on the principle- com suitability. i.e. all

being suitable the senior most will be promoted first. Seniority is

maintained as per the cadre scheme of the unit/ office where the

employees were working with reference to their date of joining the

post on recruitment / promotion.

4.8 PERFORMANCE APPRAISAL IN NALCO

In NALCO performance appraisal is not by 360 degree. Here P.A is of

2 types, Executive P.A and Non- executive P.A (Annual assessment of

non- executives).

Executive performance appraisal - It is a self-appraisal system in


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which each executive has the right to evaluate his/ her own

achievements during the year and the same appraisal is checked and

necessarily corrected by the reporting officers. The appraisal system has

7 components and are

Pre appraisal target setting

Self appraisal

Review discussion

Weight age factor

Time bound

Wider participation in appraisal exercise

Training & development

The reporting officer is required to set target and task against a timeschedule and as far as possible in quantitative terms in consultation with

the executive, whose performance, he is required to evaluate. This

exercise is undertaken at the beginning of the year. After the completion

of the year, the concerned executive gives a report in the prescribed

format about his own performance. The reporting and reviewing officer

holds a session of discussion on every aspect of the report. The period

of the appraisal coincides with the financial year and then through time

bound stage the completed report reaches to the corporate HRD

department on before 15th may. Apart from the reporting and reviewing

officer the executives report is seen and countersigned by the principal

heads of the units.

Non executive P.A


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employee to feed backs on the course of his superiors and colleagues

and to the Training department. Training feedback can be given through

a formal meeting or by circulation of a written report on the course. The

site-training department is entrusted with training programmes for non-

executives staffs of smelter and power complex only.

In order to plan and monitor the training and development activities,

the total spectrum of training has been classified into 8 majors sectors -

Contractual Training on technological know-how offered by

Aluminium Pechiney, France and other suppliers of plants and

equipment.

Functional Specialization & Refresher Training within & outside

the organization.

Advanced Management Training for Sr. Executives at specialized

institutions in India and abroad.

Management Development Programme, induction and orientation

training in house.

Training of Trainees, i.e. Graduate Engineers, Management

Trainees, Operative Trainees, Land Displaced Trainees,

Apprentices under the Act.

Supervisory Development Programmes in-house.

Workmen Development Programmes in-house.

Selective nominations to Govt. sponsored overseas training

programmes such as Colombo Plan and other exchange

Programmes.

Broad details of in-house training schemes, recruitment and

training of trainees.


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Graduate Engineer Trainees:

The Scheme was introduced in 1984 with a view to select bright young

engineers on all-India basis, train them systematically within and

outside the organization according to their placement and specialization,

so that they take up the first line executive positions initially and grow

up along with the organization. This Scheme provides the foundation of

the managerial manpower of the organization. The training duration is

12 months consisting of:

1. Induction and Management Training: 2 months.

2. Plant Familiarization on the site: 1 month.

3. On the job training/Action Learning: 9 months.


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4.10 WAGE AND SALARY ADMINISTRATION


Operative Trainees:

Operative Trainees are taken in two categories, Sr. Operative Trainees

and Jr. Operative Trainees with different qualification mix.

Senior Operative Trainees:

Diploma in the required engineering discipline or B.Sc. with Physics,Chemistry, Mathematics combination for placement in operation

departments. Period of training is 18 months.

Junior Operative Trainees:

Trade course from ITI with NCTVT certificate in required trade or HSC

pass for placement in operation departments. The training period is

spread over 18 months consisting of:

1. Induction and Orientation Training: 2 months.

2. Plant Familiarization on the site: 15 days.

3. On the job training/Action Learning: 15 & months.

Trainee Workers:

For induction of personnel to man the posts at Unskilled level and to

acquaint to industrial work culture and environment Trainee Workers

Scheme was implemented w.e.f. 16.12.1997. The qualification

required is Class VII pass/literate for LDPs. Under this scheme, trainees

are recruited and imparted training for 1 & years on a stipend of

Rs.3000/- per month for the first year and Rs.3200/- per month for the

remaining period.

Land Displaced Persons Training:

The objective of this programme is to provide certain degree of skill

inputs to the persons otherwise coming from tribal and agrarian

background, so that they could be usefully employed in the industry.

The educational standard is up to primary school. Duration of training is

one year extendable by six months, on a stipend of Rs.400/- per month.

The training schedule for this category consists of general education in

reading, writing, simple arithmetic, job related knowledge,

familiarization with machines, tools and equipment, safety first aid etc.

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Wage and salary administration is initially the application of a systemic

approach to the problem of arriving that employees are paid in a logical,

equitable and fair manner.

SCOPE, COVERAGE AND VALIDITY PERIOD

This agreement/settlement all employees in w (workmen) &

(supervisory) grade in NALCO.

It settles demands made by union relating to wages, allowances

and other perquisites contained in the chapter of demands

submitted by the unions.

Unless any repugnant is found in it this settlement shall be valid

for 4 year and 4 months.

It will be called as long term wage settlement.

WAGE AND SALARY ADMINISTRATION IN NALCO

The HRD & administration dept. carries out the wage and salary

administration.

In case of executives the govt. guidelines and corporate office

authorities were responsible for salary fixation.

In case of non-executives the wages fixed by negotiation in

between corporate office and representatives of the trade unions.

The wage negotiation is held centrally and at the corporate level.

NALCO has adopted the IDA pattern pay scales both for

Executives and Non executives which are subject to revision


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once in ten years according to the terms of wage settlement made

in January 1997.

In NALCO, total wage settlements have been done. They are;

I. Wage settlement 1

II. Wage settlement 2

III. Wage settlement 3

IV. Wage settlement 4

EXECUTIVE PAY SCALE (Revised): -

GRADE PAY SCALE (Rs)

E0 16400 3% - 40500/-

E1 20600 3% - 46500/-

E2 24900 3% - 50500/-

E3 32900 3% - 58000/-

E4 36600 3% - 62000/-

E5 43200 3% - 66000/-

E6 43200 3% - 66000/-E7 43200 3% - 66000/-

E8 51300 3% - 73000/-

E9 62000 3% - 80000/-

E1, E2 = Provisional

E6, E7 = Provisional

NON-EXECUTIVE PAYS SCALE (To be revised): -

SCALE CODE PAY SCALE (Rs)

W1 4400 3% - 7950/-

W2 4650 3% - 8400/-

W3/T0/P0/M0 4925 3.5% - 9150/-

W4/T1/P1/M1 5325 3.5% - 9890/-

W5/T2/P2/M2 5725 3.5% - 10635/-

S0/T3/P3/M3 6125 3.5% - 10990/-S1/T4/P4/M4 6625 3.5% - 11490/-


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S2/T5/P5/M5 7225 3.5% -12530/-

S3/T6/P6/M6 8000 3.5% - 13400/-

S4/T7/P7/M7 8550 3.5% - 14325/-

ALLOWANCES

In NALCO allowances and motivational incentives given to the

employees as per rules revised from time to time are given below

Night shift allowances Both for executive and non executive

employees working in night duty (Rs 40 every night)

Shift allowances - Where a non executive employee is required

to prefer in splict shift with a spread over of not less than 10

hours he is paid Rs 12/day .

Tiffin allowances Rs 85/day for each employee for lunch and

Tiffin.

Conveyance allowances For maintenance of a registered vehicle

of a employee.

Cash handling allowances Employees handling cash in finance

department are eligible to get Rs250/ month

City compensatory allowances It is applicable to both executive

and non executive employees as under A+,A , B+ and B class

cities .

Non practicing allowances It is applicable in case of medical

physicians, doctors

House rent allowances - Applicable for both executives and non

executives employees when accommodation is not provided by

the company. It is according to city basis.


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Newspaper allowances - The executives are eligible for

reimbursement of cost of newspapers /magazine / periodical and

professional literature.

Liveries All employees are entitled for the following items for

liveries at the following scale.

MALE EMPLOYEE FEMALE

EMPLOYEE

Two full sleeve cotton pants. Two cotton sarees and blouses

or

One pair of nylon socks One pair of nylon socks

Shoes Shoes

Funeral Expenses The funeral expenses of Rs 4000/ - is given

by the company to the nearest kith & kin of the deceased

employee on the day of funeral ceremony.

There is electricity subsidy and reimbursement of P&T

(BSNL&MTNL) connections and in mobile phone for employee.

Multi-purpose advances Both executive and non-executive

employees of the company are eligible for multi purpose

advance limited to Rs 40000/ - once in five year with 6% interest

per annum to be recovered in 40 equal monthly installments.

While non-executive employees are eligible for purchase of need

based items like personal computer for childrens education,

television, scooter and similar domestic articles required for son /

daughter /self marriage etc. , the executives are only eligible for

purchase of personal computer and computer peripherals .


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Traveling allowances All employees shall be eligible for

traveling allowance, if his journey is undertaking for the

following purpose: (a) Tour on duty (b) Transfer at the insistence

of the company. (c) For the medical examination of treatment

referred to, by the company (d) To participate in sports events

representing the company. (e) To attend training, seminar of

conferences sponsored by the company.

4.11 MOTIVATIONAL INCENTIVES

The company has the productivity based incentive schemes to

encourage the employees to achieve higher standard of productivity.

These schemes cover all the regular employees up to board level,

including trainee .All eligible employee of the plant level or unit have

been classified into 3 group depending upon their direct contribution to

production & productivity of the company .

A GROUP Direct production and maintenance group

B GROUP Technical service group

C GROUP - Common service group

D GROUP - Employee of other corporate and other offices.

A group is eligible for 100% achievements of productivity units,while B &C are eligible for 85% and 70% of the productivity is

eligible for D group respectively.

4.12 HOLIDAYS AND LEAVE RULES

Holidays (National holidays) 26th January - Republic

15th August - Independence day


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2nd October - Gandhi jayanti

Restricted / Optional holidays - Two holidays on festival occasions in a

calendar year are admissible to the employees as restricted holidays, out

of an exhaustive list declared in the beginning of each calendar year.

Employees working in the corporate and regional offices of the

company observe 13 closed holidays. Other employees are entitled to 7

closed holidays in a calendar year besides 3 National holidays as

indicated above. Holiday list is declared at the start of the year.

LEAVE There are several type of leaves in NALCO. The leavesincludes causal leave, earned leave, half pay leave, sick leave ,

extraordinary leave , quarantine leave , paternity and maternity leave

.The kinds of leave listed above may be granted in combination or

continuation of each , expect that casual leave cannot be combined with

other kinds of leave .No leave shall be granted beyond the date on

which an employee must retire on superannuation . Holidaysintervening the earned leave and casual leave included in the leave.

Earned leave The earned leave is admissible at the rate of one day for

every 14 days of the work for non- executives employees. This amounts

to 26 days in a calendar year. In case of executive employees, leave is

earned at the rate 2.5 days for every calendar month of work, which

amounts to 30 days in a calendar year. Earned leave can be accumulated

maximum up to 240 days in case of executives and 120 days in case of

non executives employees.

Casual leave Casual leave is admissible up to 10 days in a calendar

year. Normally this leave should not be sanctioned more than 3 days at

a stretch.


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Half pay leave Executives are entitled to half- pay leave @ 20 days

for each completed year of service. This leave can be commuted to full

pay leave on medical ground. The commuted leave even if taken in

conjunction with other leave shall not exceed 240 days at a time.

Sick leave Non- executive employees are entitled to 12 days of sick

leave in a calendar year. This leave is granted on medical ground. Sick

leave can be accumulated maximum up to 45 days for S&P and M&R

complex and 90 days in respect of employees posted at corporate,

Regional, Branch and Port facilities offices.

Special Disability Leave This leave can be granted to an employee

who is disabled as a result of injury arising out of and in course of

employment. This leave can be granted up to 120 days on full pay and

the remaining period with half-pay.

Maternity leave This is under maternity benefit act 1961. This is

limited to a period 135 day

Paternity leave A male employee with less than two surviving

children may be granted paternity leave of 15 days during the

confinement of his wife.

Special casual leave Special casual leave can be granted maximum up

to 30 days in a calendar year in circumstances unrelated to personalreason of employees such as civil disturbances, curfew, participating in

sports events of National and International importance, joining

territorial army etc.

Transit leave This is otherwise known as joining time available to an

employee on transfer depending upon the distance between old and new

place of posting.


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Leave Provision for Trainees Trainees including GETs are entitled to

20 days of paid leave in a year. The unutilized part of this leave can be

carried forward as earned leave on confirmation / regularization.

4.13 PLANT & OFFICE TIMING

The corporate office at Bhubaneswar, Marketing &Liaison offices at

Mumbai, Kolkata, Bangalore, Delhi and Chennai remain open from

9.30 am to 5.30 pm .for these offices with thirty minutes mid day

break .The offices at Angul and Damanjodi are open from 8am to 5 pm

coinciding with the general shift of the plants with one hour mid -day

break . The offices at Vizag & Paradeep are open from 8.30 am to 5pm

with 30 minutes break. Production, Maintenance and Essentials services

of the plants are operated round the clock in 3 shifts . Mines at

Damanjodi operates in A, B shifts only. A shifts from 6am to 2pm,

B shifts from 2pm to 10pm, C shifts from 10pm to 6am.

Attendance The attendance is recorded in electronic punching

machine through a punching card. The employees are required to punch

the card while entering and leave the work place. This enables the time

office to compute their wages. During the duty hours if the employee

have to leave the work premises, then they will be required to obtain

permission and out pass duly signed by the concerned shift in- charge.

4.14 LEAVE TRAVEL CONCESSION

For the employees including their family members the company pays

the concessions for traveling to their hometown and back or in lieu of


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tax relief subject to existing provisions. The Company does not

contribute during the period when the employees are not in a position to

contribute, such as when they are on leave without pay. On voluntary

and compulsory contribution of employees and on Companys

contributions they are entitled to 8.5 % of interest per annum at present.

Withdrawal from the fund for specified amount to meet the following

kinds of expenditure

Expenses for your illness and your familys illness

Cost of passage for your and for your family while going to

a foreign country for education or medical treatment

For marriage, funeral and other religious occasions

Cost of legal proceedings for vindication of your integrity

Expenses on purchase of lands and building of a dwelling

house

Pay premium on insurance policies of self or spouse Expenses of the damage caused to property on account of

flood, cyclone and other natural calamities

Meeting living expenses in the event of non-receipt of pay

for 2 months or more or closure/lockout of the establishment for

more than 15 days without compensation

Purchase of equipment to minimize hardship on account ofphysical handicap

o Second drawl is not allowed unless and until the first loan is

repaid.

o Transfer of the amount in your credit is permissible in the

event of your change over to another organization having

recognized provident fund.


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o You can nominate a member of your family to receive the

amount in your credit in the event of your death.

BONUS:

Employees are paid bonus as per the Payment of Bonus Act, 1965. It is

paid to all categories of employees. It is paid around at the festival of

Durga puja. It depends upon the no. of months you have worked in a

financial year i.e.: April to March next. It is paid on a pro-rata basis.

GRATUITY

Any employee who completes 5 or more year of continuous service is

entitled to receive gratuity at the time of leaving the organization as per

the payment of gratuity act 1972. It is applicable to all categories of

employees after their clearance. The amount of Gratuity payable is

equal to 15 Days of Basic salary for each completed year of service.

The basic salary for calculation will be the last drawn basic salary.

GROUP GRATUITY SCHEME

Paid to you by the Company for employee efficient, faithful

and long service.

On completion of 5 years -15 days salary for each completed

year of service limited to Rs.3,50,000/- on

retirement/resignation/termination of service for reasons other

than fraud


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introduction to human resourse

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