A

PROJECT REPORT

On

EMPLOYEE WELFARE SCHEMES

(HERO MOTORS LIMITED)
By

ABHISHEK JHA

Under the guidance of

PROF. AMOL MANE

In Partial Fulfillment of

Bachelor Degree in Business Administration

Submitted To

Alandi (D), Pune

Affiliated to

Savitribai Phule Pune University

Academic Year 2018- 2019

1
 Alandi (D), Pune

CERTIFICATE

This is to certify that, the project report entitled “EMPLOYEE WELFARE SCHEMES

(HERO MOTORS LIMITED)” which is submitted by Mr. ABHISHEK JHA in partial

fulfillment of Bachelor of Business Administration has satisfactorily completed the project
work under our guidance and supervision.

We give our best wishes for his future endeavor.

Prof. Amol Mane Prof. Amol Mane Prof. Dr.B.BWAPHARE

Project Guide HOD BBA & BBA (IB) Principal

Internal Examiner External Examiner

2
 DECLARATION

I, hereby declare that the project report on “EMPLOYEE WELFARE SCHEMES (HERO
MOTORS LIMITED)” is written and submitted by me to MAEER’s MIT ACSC Alandi
(D) Pune, towards the partial fulfilment of the study of BBA in year 2018-2019 is original
work done by me, which is based on my primary & secondary data & it is based on the
knowledge & material gained from the company. The contents provided are true to the best of
my knowledge & belief.

Place: MIT ACSC ALANDI (D) Pune. Mr. Abhishek Jha

Date: TY BBA

3
 ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude to everyone who has directly or
indirectly helped me in completing the project successfully.

I am also thankful to Prof.Dr.B.B.Waphare. Principale of MIT ACSC,Alandi, & also to

Prof.Amol Mane. HOD of BBA & BBA (IB) for providing me with this opportunity.

I express my gratitude for Prof.Shailendra Patil for providing me an opportunity to complete

this project under his valuable guidance and continuous monitoring.

I take this opportunity to thank my family members, friends without their cooperation I
would not have been able to complete this project.

Abhishek Jha
TY BBA (Marketing)

4
 INDEX

CHAPTER NO. NAME OF THE CHAPTER PAGE NO.

EXECUTIVE SUMMARY 1
1. INTRODUCTION 2
1.1 DEFINITION OF EMPLOYEE WELFARE SCHEMES 3
FACILITIES COVER UNDER EMPLOYEE WELFARE
1.2 9
SCHEMES
1.3 NEED OF EMPLOYEE WELFARE IN ORGANISATION 12
1.4 OBJECTIVES OF THE PROJECT 13
1.5 RESEARCH METHODOLOGY 14
1.6 INSTRUMENT USED 14
1.7 PROJECT EVALUATION METHOD 14
THEORETICAL BACKGROUND , LITERATURE
2 15
REVIEW
2.1 LOAN POLICY 15
2.2 CANTEEN FACILITY 15
2.3 MEDICAL FACILITY 16
2.4 TRANSPORTATION FACILITY 17
2.5 TRAINING & DEVELOPMENT 17
2.6 TELEPHONE ALLOWANCES 18
3. COMPANY PROFILE 19
3.1 NAME , ADDRESS , LOCATION OF COMPANY 19
3.2 VISION & MISSION 20
3.3 HISTORY OF HERO MOTORS 20
3.5 AWARDS OR ACHIEVEMENTS 22
4. DATA ANALYSIS & INTERPRETATION 23
4.1 FINDINGS 23
4.2 SUGGESTIONS 23
4.3 CONCLUSION 25
QUESTIONNAIRE
REFERENCES (BIBLIOGRAPHY AND
WEBLIOGRAPHY etc)

5
EXECUTIVE SUMMARY

The term “employee benefit welfare plan” are defined in section 3(1) of the act to include

plans providing “ (i) medical, surgical, or hospital care or benefits, or benefits in the event of

sickness, accident, disability, death or unemployment or vacation benefits, apprenticeship or

day care centers, scholarships funds, or prepaid legal services , or (ii) any benefit described

in section 302(c) of the Labor Management Relations Act 1947 (other than pensions on

retirement or death, and insurance to provide such pensions).

Welfare facilities include toilets, washing facilities, rest and changing facilities, personal

security arrangements (e.g. lockers) and refreshments, recreational facilities, loan facilities,

personal growth facilities like library facility; safety and security measures, adjustable

working shift and timing, festival grants, transportation facility, housing facility etc.

6
 1. INTRODUCTION

EMPLOYEE WELFARE

1.1 DEFINITION:

The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of

the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or

benefits in the event of sickness, accident, disability, death or unemployment, or vacation

benefits, apprenticeship or other training programs, or day care centers, scholarship funds,

or prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor

Management Relations Act, 1947 (other than pensions on retirement or death, and insurance

to provide such pensions).''

Welfare facilities include toilets, washing facilities, rest and changing facilities, personal

security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities,

personal growth facilities like library facility; training facility, Safety and Security measures,

adjustable working shift and timing, festival grants, transportation facility, housing facility

etc.

7
8
1.2 DIFFERENT FACILITIES COVER UNDER EMPLOYEE WELFARE
SCHEME :

PLANT TIMING OFFICE TIMING

ENVIRONMENT ENVIRONMENT

1. Shifts 1. Ventilation
2. Overtime 2.Air-conditioned
3. Breaks 3.Lighting
4. Seating arrangement
5 .General Cleanliness
6. Humidity
7 .Personal Laptop

TRAINING EDUCATIONAL PERFORMANCE

FACILITY FACILITY MEASURE

1. Internal Training 1. Library 1. Regular & effective

2. External Training 2. Debating Union 2. Monetary / Non monetary
Appraise awards
3. Workshop & Seminars 3. Worker’s children’s

9
FIRE ARMED SECURITY TECHNICAL MEASURES
PROTECTION GUARD PROTECTION FOR
ACCIDENT
PROTECTION

CLUBS EVENTS

1. Gymnasium 1. Picnic

2. Creches 2. Factory Foundation day

3. Recreational Club 3. Cultural evenings

4. Festivals celebration

10
SANITATION OTHER FACILITIES

1. Toilets 1. Rest room

2. Wash-basins 2. Tea & Snacks at breaks

3. Water & Waste disposal 3. Water cooler

4. Dustbins & Spittoons

DISPENSARY INDIVIUAL TREATMENT

1. First-Aid 1. Hospital & Medicine cost

2. Regular Doctor for accidental case

3. Medicines for minor injuries & illness 2. Free medical check-up

11
 OTHER FACILITIES

UNIFORM CHILDREN FESTIVAL HOUSING TRAVELLING

SCHOLARSHIP GIFTS

1.3 NEED FOR EMPLOYEE WELFARE :

Intellectual, physical, moral,

Create &
EMPPLOYEE
Improve Ensure
organizational WELFARE continual
SCHEMES commitment

Fulfilling Governmental
Laws, Statutory Provisions
or required by customs of

12
1.4 OBJECTIVE OF THE PROJECT :-

 The purpose of this report is to evaluate the on going activities carried out under
“Employee Welfare Schemes” in Hero Motors Ltd.

 It improves the loyalty and morale of the employees.

 It helps to improve.

 It reduces labor turnover absenteeism.

13
 1.5 RESEARCH METHODOLOGY

1.6 INSTRUMENT USED :-

 Questionnaire
 Data collection method
 Interview method
 Details of data regarding cost from files of Finance Department.
 Personal observation of every welfare facility

1.7 PROJECT EVALUATION METHOD :-

 Sort out the feedback of different companies about what they give to their employees

and also sort out the information of benefits given by Hero Motors.

 Summary of Feedback for Future Planning from responses.

 Analysis of surveys through statistical tools, charts and evaluation of the study.

 Analysis of the information gathers from other companies and makes comparison of

total.

14
 2. THEORETICAL BACKGROUND , LITERATURE REVIEW :-

2.1 LOAN POLICY

Hero Motors provides its employees two types of loans- Personal loan for any personal

purpose like marriage, higher education, housing etc and Vehicle loan. Total 10 loans

approved in a month in “first come first serve” basis. For lower level employee there is no

interest charged up to Rs. 5000/- and recovered in 10 equal monthly installments from the

employee’s salary, above this amount 14% interest are charged/ year and recovered in 20

EMI. For higher level employee up to Rs.15000/- is interest free above which 14% interest

are charged.

As vehicle loan, 75% of the total cost paid by company as loan in 5% interest and recovered

in 60 EMI including interest. Car loan available for managers and above only.

Amount given as loan at different levels:

G.M and above - 2 Lac

A.G.M I - 1.5 Lac

A.G.M II - 1.25 Lac

Managers - 1 Lac

2.2 CANTEEN FACILITY:

Canteen is not only a place for taking lunch or dinner. It is a place where employees of one

department can meet with employees of other departments and can make some conversation

that helps to improve the informal communication flow within organization. In Hero Motors

a specious and well-equipped canteen is there facilitated with every modern facility like

comfortable seating arrangement, water cooler and washing facility.

Hero Motors provides canteen subsidies for employees; lunch coupon distributed at Rs.14/-

and Rs. 3/- is paid by company as subsidy and at breaks two times free teas are provided.

15
Employees working for overtime above 4 hours are entitled for free lunch. Summer Trainees

are provided free lunch during their training periods. Except these meal allowances for lunch
and snacks are also given to employees if they are outside the plant for any official purpose

during lunchtime. Hero Motors provides free lunch to the visitors and guests (like corporate

guests) who come for any official purpose.

COST OF LAST FINANCIAL YEAR BEHIND CANTEEN

Total meal allowance (on duty) paid to employees: Rs. 1, 96,800/-

Canteen bill (including pantry cost) : Rs. 22, 43,200/-

Refreshment & tea, snacks expenses : Rs. 6, 50,000/-

2.3 MEDICAL FACILITY:

At Hero Motors there is a dispensary where doctor visits regularly, daily 1 hour a doctor

attends patients. All time first-aid facility and medicines for any minor illness are available.

For any major accident or in any serious case patients are admitted to near by hospitals or

nursing home. The cost of medicines, rent of bed and others are given by company. Hero

Motors has an ambulance for shifting purpose in case of serious illness.

MEDICAL COST OF LAST THREE FINANCIAL YEARS:

Cost
Cost for behind Doctor's
YEAR
medicines employees fees
treatment

April 2013-
59,700 39,000 72,000
March 2014

April 2012-
12,000 97,400 60,000
March 2013

April 2011-
23,300 4,50,000 60,000
March 2012

16
Hero Motors gives its employees medi-claim facility, under which the policy premiums for

employee are given by Hero Motors and policy premium of employee’s family members are

paid by employee.

2.4 Transportation facility:

Providing transportation facility is a very important aspect of any organization to its

employees. Because if the way to reach the organization is not very convenient and the

employee has to face lots of problems during every day journey it can affects the

organization in a very large way. It may results in late comings that hamper organizational

culture and also the productivity, again facing problems in daily up-down may irritate

employees and they may feel to switching the job means, increasing employee’s

dissatisfaction and lost of good employees which can be a severe problem for any

organization.

Hero Motors has three buses. The buses cover different routes for their workers coming from

different places.

Cost behind bus service in last financial year :

Rs. 9,65,000/-

2.5 Training and development:

Training is way to make sure that employees have the right skills to effectively operate

various machines and manage various challenging situations. Employer gives training to

his/her employees so that employees can do the same job in some better way, which

ultimately increase the quantity of production and also the quality of work. It is basically

given by every organization for technical up-gradation of the job where as development

program is carried out with the view to explore and upgrade the qualities of employee’s inner
17
quality. Development program is very necessary for the personal growth of employees.

Hero Motors gives special emphasize on this aspect for its employees. In Hero Motors

‘Employee Training Programs’ are carried out by a group of people of Quality Department.

Hero Motors provides good scopes for employees to learn from Internal as well as External

Training. Employees can attend Seminars and Workshops arranged by other organization and

company bears entry fees for that. Hero Motors invites/hires external trainer from outsides

for ‘Worker’s Training’. Staff training programs also carried out as per training needs and

plans. The training programs are carried out in two basic ways- a) On the job training and b)

Off the job training. Off the job training is give using different methods like class room

training, group discussion etc. After training, trainees are evaluated and ranked by the trainer

to judge and compare their qualities and again a feed back form filled by trainees to welcome

their suggestions.

2.6 Telephone Allowance :

Today’s business world is very dynamic in nature and it demands proper and quick execution

of any work. Managers have to update their information base in every moment and have to

take decisions in challenging situation. For this it is very necessary to stay connected with

their colleagues and boss within and outside organization also. Now a days most of the

companies give mobile and telephone allowances to their managers.

Hero Motors grants mobile allowance from supervisor level to highest level of management

and paid for residential telephone bill only to top-level management.

Amount given as mobile allowance at different level:

Vice president and above : Rs. 3500/- per month

General manager I / II : Rs. 2200/- per month

Assistant General Manager, Manager : Rs. 1500/- per month

Assistant manager I / II : Rs. 1000/- per month

Executive I /II /III, Supervisor I/II/III : Rs 600/- per month

18
 3. COMPANY PROFILE

Company Name: HERO MOTORS LIMITED

Company Address: 10th Km Stone, G.T. Road

Dadri, Distt- Gautam Budh Nagar, U.P.

Industry: Automobile Spareparts

Product range: Gear block, Cylinder block, Swing arm, Main stand, Side stand,
Chain case, etc.

Mother concern: HERO GROUP OF COMPANIES:

 Hero Cycles - Founded in 1956, largest manufacturer of cycles in the world,

manufacturing over 6 million cycles per year.

 Hero Motors - Auto component outsourcing / scooter & Step through maker &

parent company of Hero Global Design.

 Hero Global Design – Design/ Engineering/ Prototyping and Manufacturing

support services.

 Munjal Showa - Joint Venture with Showa, Japan largest

manufacturer of shock absorbers in India

 Sunbeam Auto & Munjal Castings - Aluminum die casting Unit

 Hero Mindmine – BPO training services, BPO services; Call Center

All India Offices:

I) Corporate Office: 601, International Trade Tower, Nehru Place, New

Delhi- 110019

II) Plant / Works: 10th Km Stone, G.T.Road,

Dadri, Distt- Gautam Budh Nagar, Ghaziabad (UP)

III) Foundry Project: Plot No. 192, Sector-4, Manesar, Gurgaon

19
 3.2. VISION :-

The story of Hero Honda began with a simple vision - the vision of a mobile and an

empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new

identity, reflects its commitment towards providing world class mobility solutions with

renewed focus on expanding company's footprint in the global arena.

3.2 MISSION :-

Hero Motor’s mission is to become a global enterprise fulfilling its customers' needs and

aspirations for mobility, setting benchmarks in technology, styling and quality so that it

converts its customers into its brand advocates.

The company will provide an engaging environment for its people to perform to their true

potential. It will continue its focus on value creation and enduring relationships with its

partners.

3.3 HISTORY OF HERO MOTORS:

Hero, the brand name synonymous with two-wheelers in India, is a multi-unit, multiproduct,

geographically diversified, Group of Companies - the reflection of the steely

ambition and indomitable grit of the Munjal Family. Munjal Brothers, the founders of

the Hero Group, started out in 1960’s in business of bicycle components, and then

complete bicycles. Like every success story, Hero's saga contains an element of spirit

and enterprise; of achievement through grit and determination, coupled with vision

and meticulous planning.

20
The company incorporated its business with the name of Majestic Auto Limited in

1978. It was established at Ludhiana by Mr. O.P.Munjal, chairman of the coimpany.

Later in 1988 another production plant, namely Majestic Auto Limited-II was

established by Mr. Pankaj Munal at Ghaziabad. In 2005 the company has demerged

and the second plant of Ghaziabad was renamed as Hero Motors Limited. The plant

area of Hero Motors spread over 30 acre land. HML has another small plant of 20

acre land at Manesar, near Gurgaon where they produce Ferrous casting products for

their customers.

Hero Motors (and subsequently Hero Global Design), set up in 1988 was originally

focused solely on the two-wheeler market. The company manufactured two stroke

mini motorcycles under the HERO PUCH brand, two stroke scooters under the

HERO WINNER brand and four-stroke step through motorcycles under the HERO

SMART and HERO STING brand.

The Automobile and the Automobile Component Industry is one of the largest

growing in India. Hero Motors considers this to be a focus area. Since 2004, based on

a new strategic initiative, Hero Motors is nurturing the integrated engineering service

provider business. HML now supplies automotive spare parts like gear block to

Austria,Cylinder block to L.G. and Swing arm; Main stand; Side stand; Chain case

etc to Hero.

21
3.4 AWARDS OR ACHIEVEMENTS:

 Green Pioneer Award - 2013

 Asias Third Best Employer Brand Award-2012
 NDTV Profit Car & Bike Awards 2010
 Company of the Year awarded by Economic Times Awards for Corporate Excellence
2008-09
 The NDTV Profit Car India & Bike India Awards 2007 in the following category:
Overall "Bike of the Year" - CBZ X-treme
 Adjudged 7th Top Indian Company in 2006 by Wallstreet Journal Asia (Top Indian
Two Wheeler Company).
 Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC
in the 'Automobiles' category.
 Hero Group ranks amongst the top 10 Business Houses comprising 18 companies,
with an estimated turn over of US$ 1.8 billion during the fiscal year 2003-2004.
 HSBC-Merril Lynch has estimated Hero Group would be among the Top Value
Creator in 2001-2004.
 Hero Honda Motors was ranked 3rd amongst top Indian companies Review 2000-
Asia’s leading companies award (2003) by Far Eastern Economic Review.
 Hero Cycles Limited is a Guinness Book Record holder since 1986 as the wolrd’s
largest manufacturer of bycycles, with annual sales volume of 5.2 million bicycles in
FY 2004.
 Hero Motors Limited was awarded as Highest Automobile Exporter in the year of
1995-1996 & 1996-1997.
 Hero Motors is Certified by ISO 9000 in the year of 2002.

22
 4. DATA ANALYSIS & INTERPRETATION –

4.1 FINDINGS :-

During my training I found that –

 Most of the employees are satisfied with employee welfare schemes of the
organization.
 Written notice should be given to the personnel department in advance before
availing any welfare schemes.
 There are so many formalities before availing welfare schemes.
 Written notice with your signature and E.I. no. and department.
 Filling of application form before availing any scheme.
 If the benefit is taking for long sickness, then the claims should be certified from
ESIC or by the company’s medical officer.
 Reason behind taking welfare scheme.

4.2 SUGGESTIONS :-

Staff Welfare activities are well organized in Hero Motors, but there are

some areas where improvements are necessary –

Upgradation in Canteen facility: Although the quality of food is good

at hero motors but the service provided by the mess vendors is not up to

the mark. Hero Motors has to look after this problem, to solve this

problem coupon system should be applied in the canteen.

Transportation facility: There is no transport facility given to staff in

general shift. It is important to provide transport facilities as it will save a

lot of time and energy of the employees which will be visible in

company’s turnover.

Recreation facility: There should be a refreshment facility and a

recreation center because working in long shifts can be tiring many times.

With the help of it workers can common library in Hero Motors. Hero

23
Motors should arrange a library within the plant so that employees who

are eager to gain more knowledge of various fields can fulfill that.

Ambience and Seating arrangement in gate: Like any good

organization Hero Motors has a well furnished reception area but the

there is no proper siting facility for the rejuvenate and work more efficiently.

· Library facility: There is no

visitors.

Different seating arrangement for HR department: In Hero Motors

HR department and worker’s attendance room are same, small room

called “Time Office”. Shift time is maintained from that room. Hero

Motors can use this room only for maintain shift timing and taking

attendance of worker’s but a different cell should provide to other

employees of HR department where a separate cabin can be given to HR

head. Because it can create a lot of disturbance in official works.

Social Get-together and cultural events: Hero Motors should arrange

social get-together like picnic that is very necessary for Hero Motors

because due to lack of such events employees feel bore in their daily life.

Again it is suggested to HML that a cultural evening should be arranged

at the foundation day to give employees a chance to show their creative

talents. Especially these types of activities increase the mentality to do

team work.

24
4.3 CONCLUSION :-

 Hero Motors gives only Rs.3 as canteen subsidy.

 Hero Motors pays good attention in this regard, total amount expended is Rs.120000/-
whereas per employee cost is Rs. 120/- which is satisfactory.
 Hero Motors expends Rs. 700/- per employee per year which is not satisfactory.
 In Hero Motors 2 pairs of uniform provided to per employee in every year.
 In Hero Motors 2 tea breaks of 15 minutes and 30 minutes lunch break (total 60
minutes breaks). Hero Motors paid good attention to training and development
activities, it expends Rs.450000/- per year behind training program, seminars and
workshops and the cost paid for per employee per year is Rs. 1000/-.
 Hero Motors has only 3 buses for transportation.

25
 QUESTIONNAIRE

PROFILE OF RESPONDENT

Name of Company:----------------------------------------------------------------------

Address of the Company:---------------------------------------------------------------

Name of Employee:----------------------------------------------------------------------

Age --------------------------------

Gender---------------------------

Education----------------------------------------------------------------------------------

Designation-------------------------------------------------------------------------------

EMPLOYEE WELFARE SCHEMES

1. Working Condition

a) Plant Environment:

i) Ventilation

ii) Lighting

b) Office Environment:

i) Air condition Facility:

ii) Seating Arrangement:

c) Timings:

i) Shifts:

ii) Overtime:

26
 iii) Breaks:

d) Refreshment Facility:

i) Latrine:

Total No. :

Hygiene Cond:

ii) Water:

Total No. of water cooler:

Hygiene Cond:

iii) Tea/ Coffee No./Day:

e) Office Accessories:

i) Personal Computer/Laptop:

No. Per Deptt:

Total cost/ deptt:

ii) Telephone/Intercom Facility

No. Per Deptt.

2. Policies

a) Loan policy:

i) No. of loan sanctioned/ month:

ii) Max amount of loan given:

iii) Interest rate:

iv) Loan recovery policy:

b) Mediclaim policy:

i) Total amount paid by company/yr.:

ii) Rules regarding policy:

iii) Max. Amount given:

3. Canteen Facility

a) Price- Lunch:

27
 i) Coupon Rate:

ii) Subsidies:

b) Price- Snacks:

i) Coupon Rate:

ii) Subsidies:

4. Medical Facility

a) Regular Doctor/ Dispensary:

i) Visit/Week:

ii) Cost/year:

b) First Aid &Medicine:

i) Avg. Cost/year.:

ii) Availability:

c) Total cost/ year:

5. Scope for Personal Growth

a) Training Facility:

i) Ways of training:

a) Internal

b) External

c) On-the-job

d) Off-the-job

ii) No. of Training/month:

iii) Work related:

iv) Cost/Year:

v) Mandays/employee/year:

b) Seminar & Workshop:

i) Avg. No. of Seminar & Workshop attended/Year.:

28
 ii) Avg. cost for attending Seminars & Workshop/Year.:

c) Performance Appraisal:

i) Appraised Effectively:

ii) Half yearly/Yearly:

iii) Regular Scope for Promotion:

d) Awards & Certificates:

i) Monetary Award:

ii) Long Service & Retirement Award:

iii) Regular Attendance Award:

iv) Any Other:

e) Library Facility:

6.Transportation Facility

a) Bus Service:

i) No. of Buses:

ii) No. of trips/shifts:

b) Allowance:

7. Telephone/ Mobile Facility

a) Mobile allowance:

FOR DIFFERENT LEVELS:

Rs. /- per month

Rs. /- per month

Rs. /- per month

b) Telephone Allowance:

FOR DIFFERENT LEVELS:

8. Organizational Climate

a) Communication flow:

b) Way of supervision:

29
9. Safety Measure

a) Fire Protection:

b) Chemical/Hazardous Protection:

c) Measure for Accident Protection

10. Security Measures

a) Manpower Security:

i) Total No of security man:

b) Technical Protection

11. Other Facilities

a) Children Scholarship:

i) No.of Scolarship/Year:

ii) Total amount given/ Year:

b) Leave & Holiday facility:

c) Providing Dress:

i) No. of Shirts, Pants shoes, sweaters:

ii) Yearly cost/uniform:

iii) Cost of Personal Protective Equipments:

iv) Total cost/-*year:

d) Gifts:

30
REFERENCES

WEBLIOGRAPHY :-

 http://www.heromotors.com
 http://www.heromotocorp.com

31