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NATIONAL FERTILIZER LIMITED

(A Govt. of India Undertaking)


(PANIPAT) HARYANA

SUMMER TRANING REPORT

Submitted in partial fulfillment of the requirement


of the syllabus
in
M.B.A HUMAN RESOURCE
BATCH: 2007-2009

D.A.V INSTITUTE OF MANAGEMENT, FARIDABAD


(AFFILIATED TO MAHRISHI DAYANAND UNIVERSITY)
APPROVED BY A.I.C.T.E & GOVRNMENT OF HARYANA
FARIDAB
P&A, NFL, PANIPAT
PRIYA GUPTA
M.B.A (HR)

PREFACE

D.A.V INSTITUTE OF MANAGEMENT, FARIDABAD


runs the programme Master of Business
Administration. As a student of it I got great
opportunity to take practical training in a company
that is M/s NATIONAL FERTILIZER LIMITED,
PANIPAT.

This institute’s ultimate goal is to give the best to


its students and there by to the nation. So, by
conducting this practical programme students get
practical knowledge during their eight Weeks
training programme, that is in various departments
of the company.

I have included here in this project information


about HUMAN RESOUCRE DEPARTMENT. First of all
I include history and development stage of the
company. It consists of past, present and some
ideas about future also.
PRIYA
ACKNOWLEDGEMENT

It gives me a Great pleasure to present this Report. It


indeed goes without saying that the success of my
summer training programme at M/s NATIONAL FERTILIZER
LIMITED, Panipat (Haryana) is because of direct or indirect
guidance of every body at the company and college. I take
this opportunity to acknowledge their help and valuable
guidance in providing technical know how & reviewing the
report.

I here by express my gratitude towards the management


of NFL for giving me an opportunity of training in their
esteemed organization.

First of all I am very thankful to Mr. V.K. HIRA Mgr.


(P&A).

I am deeply thankful to:


1. Mr. B.S.JANPANGI Sr. Mgr.
(HRD)
2. Mr. S.C.SAINI Dy. Mgr. (P&A)
3. Mr. S.K.SAMBHARIA Dy. Mgr.
(HRD)
4. Mr. P.JAYRAJAN Asstt. Mgr. (P&A)
5. Mr. RAMESH KUMAR P.O. (P&A)

I respectfully thank to the management and all employees


of NFL for their valuable assistance, suggestions and their
valuable guidance in completing my project report.

Indeed without the help and coordination of the above-


mentioned people this report might not have reached to
its fruitful completion.
PRIYA GUPTA
M.B.A
D.A.V INSTITUTE OF MANAGEMENT
FARIDABAD
INDEX

1. ABOUT THE COMPANY

2. ABOUT THE UNIT

3. AWARDS & RECOGNITION

. 4. HUMAN RESOURCE MANEGMENT

5. INDUSTRIAL RELATIONS

6. WELFARE SCHEMES

7. STATUTORY SCHEMES

8. NON STATUTORY SCHEMES

9. MOTIVATIONAL SCHEMES

10. OTHER WELFARE SCHEMES

11. SWOT ANALYSIS

12. CONCLUSION

13. BIBLOGRAPHY
COMPANY
PROFILE
NATIONAL FERTILIZERS LIMITED
Incorporation

NFL, schedule’A’and a Mini Ratna Category 1 Company was


incorporated on 23rd AUG 1974 for implementation of two Fertilizer
Plants, based on gasification technology. Of feed stock/LSHSat Bathinda
in Punjab and Panipat in Haryana having an installed capacity of 5.11
lakh tones of Urea .In April 1978, the Nangal group of Plants of Fertilizer
Corporation of India (FCI) were transferred to NFL consequent upon
reorganization of FCI .The govt of India, in 1984, entrusted the Company
to execute the country’s first inland gas based Fertilizer project of 7.26
lakh tonnes Urea capacity in district Guna of Madhya Pradesh, This
project on completion, received the first prize for “excellence in project
management “ from the Ministry of Program Implementation, Govt of
India. Expansion of Vijaipur plant was initiated in 1993 for doubling its
annual production capacity. The deppt. Of Fertilizers has received the
annual installed capacity of Vijaipur Plant from 7.26 lakh tonnes of Urea
to 8.26 lakh tonnes with effect from 1stApril 2000.

In order to sustain and enhance the Company’s growth, NFL successfully


completed the revamping of Urea Plant at Nangal. with the re-rating of
installed capacities of Vijaipur Plant and revamping of Urea Plant at
Nangal, the total installed capacity of Urea of NFL has increased to 32.20
lakh tonnes.

YEAR PROFIT & TURNOVER


PANIPAT UNIT NFL
Net Turnover(Cro Net Profit(croreTurnover(cro
Profit(Crore) re) re)
2007-08 22.33 943.33 152.82 4140.64

2006-07 20.37 799.42 176.10 3865.68


2005-06 30.37 744.84 116.40 3590.52

2004-05 27.03 660.62 160.91 3474.06

2003-04 11.65 698.71 85.04 3387.62


PRODUCTION PERFORMANCE
NFL is the second largest producer of nitrogenous fertilizers in India.
The company ‘s contribution towards Urea production in the country
during 2006-07 is estimated at 16.53% against 16.4% last year.

NFL has been making profit consistently. The Company recorded pre-tax
profit of Rs.48.33 crores during 2001-02. However, the increase in profit
during the year is on account of past periods arrears of subsidy pertaining
to 7th & 8th pricing period

The Company during 2006-07, produced 33.51 lakh tonnes of Urea,


thereby achieving a capacity utilization of 103.7% based on the re-
assessed capacity

INFORMATION TECHNOLOGY

NFL has brought in latest information technology for its day-to-day use.
The Company has a satellite-based communication system installed with
the assistance of NIC at its office complex in NOIDA, units and zonal
Marketing office. All the locations have Local Area network. The
company has its Internet Website WWW.nationalfertilizers.com and
intranet website for providing information to all employees.

SPECIALISED SERVICES
The company assesses its human resources as its most valuable assets.
NFL, for a long time, has been providing specialized services to outside
Companies both in India and abroad. These services include project
commissioning, plant operations, maintenance and trouble-shooting. The
company, recently provided training to the engineers of m/s petro
vietnam, Vietnam at NFL vijapur.

IMPLEMENTAITON OF OFFICIAL LANGUAGE

With a view to promote the use of Hindi as official language and to meet
its provisions, rules made there under and for compliance of related
statutory obligations, the company has been making efforts consistently.
Cash incentive Scheme has been implemented to provide encouragement
to the employees for workings in Hindi. Various competitions and
programmes are organized to propagate the use of official language.

MEMORANDUM OF UNDERSTANDING

The Deptt. Of Public Enterprises, Govt. of India, in search of improving


accountability and giving higher autonomy to Public Sector
Undertakings, introduced the concept of MOU from the early nineties.
NFL signed first MOU with Deptt. of fertilizers for the year 1991-92.
The company received “Excellent” rating under MOU system for the
year 2006-07. The MOU rating for the year 2007-08 based on the audited
data is expected to remain as “Excellent”.

MARKETING NETWORK

NOIDA
BHOPAL LUCKNOW CHANDIGARH

These three Zonal offices are coordinating the company’s marketing


network: -

1) BHOPAL
2) LUCKNOW
3) CHANDIGARH

➢ Its central marketing office is at NOIDA.The company


during the year 2006-07, recorded the ever best sales of
53.91 lakh tones of fertilizers.

➢ The Panipat unit has developed Neem Coated Urea, which


enhance crop yield by an average of 4% to 5%. The co. is
planning to market Neem Oil Coated Urea also.

➢ N.F.L is the first Co. in India to be permitted by the Govt. of


India to produce and market Neem Oil Coated Urea.

➢ The company has also established single window shop at


Solan and Panipat where all agri-inputs are made available
at one place.

➢ The company is also marketing Bio-fertilizers in the states


of Punjab and Haryana in order to increase its consumption.

National Fertilizer units at a glance :-

The total production capacity of all the four units (Nangal ,Bhatinda,
Panipat, vijaipur) is 9550 MT Per Day & other product and By-products
are present in the Following:
•N
(P
M
•Bhatin
(Punja
PANIPAT UNIT
PROFILE
The Panipat Unit of NFL.is situated on National Highway No. 1 and
Delhi-Amritsar railway trunk route. Panipat city is about 90 km from
Delhi and is covered in National Capital Region. Panipat is a historical
city, which was the scene of three historical battles. Panipat is also
famous for its handloom industry.
The Govt. of India approved the Panipat project on 10th February 1975
for implementation. Prime consultants for design, engineering, erection
and commissioning of the plant were M/s Toyo engineering corporation
of Japan and M/s engineers India Ltd. Starting from the zero-date
30.4.75, the feed in was achieved on 1.9.78 ie. within 40 months of the
zero –date. The Unit went in commercial production from 1.9.79. The
total cost of the project was rs.221.33 crores.
Performance of the Unit in all areas of its performance has also been
acknowledged. It has won number of awards and recognitions in the field
of production, productivity, safety, welfare, innovation, environment
protection, skills etc. The Unit is well known for its commitment towards
environment protection and social welfare in the region.
Panipat Unit is considered the show window of the company. The Unit
being near to national capital, it hosts a number of distinguished guests
and visitors from with and outside the country. The visitors show keen
interest in the functioning of the plant and appreciate the progress made
by the fertilizers industry in the country.

SALIENT FEATURES OF THE PLANT


1. Annual Capacity : 5,11,500 MT
In terms of Urea 2,35,290 MT in terms of Nit.

2. Annual Requirement of Raw Materials:


• Fuel-oil/LSHS : 3,00,000 M.T.
• Coal : 5,45,000 M.T.
• Power : 2,18,000 M.W.H
• Water : 5,630 Million Gallon

1. Estimated Cost : Rs. 182.88 crores

2. Foreign Exchange : Rs. 56.45 crores

3. Capacities of the Plant :


• Ammonia : 900 M.T. per day
• Urea : 1,550 M.T.per day
• Steam Generation : 3 boilers each of 150
MT/hr.
• Captive Power Plant : 1 boiler of 210 MT/hr
2 Turbo generation of 15 *2 =30
MWH

6. Land : 442Acres- Plant

131 acres- Township


NFL produces two popular brands of chemical Fertilizers, ie Kisan Urea.
&Kisan Khad.NFL has signed a memorandum of understanding with the
govt. of India in 1991-92. All the years, after signing the MOU, Govt. has
rated the performance of the company as ‘excellent’. Company has been
performing at high level of capacity utilization.

PLANTS UNDER PANIPAT UNIT

AMMONIA UREA PLANT SMC OFFSITES

AMMONIA PLANT
The ammonia plant is based on fuel oil as feedstock and is designed to
produce 900 MT/Day of Ammonia. The fuel is partially oxidized in the
gasification reactor at 1,350 degree C by shell gasification process. The
raw gas produced in the reactors mainly consists of H2, CO, CO2 and
H2S. The heat generated in the process is recovered in the waste heat
boilers to produce High-pressure steam at 100 Kg/Cm2.about 80% of the
carbon produced in the Gasification Reactors, is recycled along with the
feedstock.

Hydrogen Sulphide (H2s) in the raw gas is removed by absorption in cold


methanol in desulphurisation Section of Rectisol. The Carbon monoxide
(Co) in the desulphurised gas is converted to Carbon Di Oxide (CO2) by
double stage H.T. Shift Convension. The CO2 is, later, removed from the
process gas in Decarbonation Section of Rectisol. H2S and CO2 from the
Raw Gas/ process gas are removed by low temperature Methanol in the
Rectisol Section and both the gases are recovered by regeneration of
Methanol at low pressure. H2S in the form of clause gas is sent to Sulhur
Recovery Plant for recovery of Sulphur. The CO2 gas is sent to Urea
Plant for synthesizing with Ammonia to manufacture Urea. An
Absorption Refrigeration Unit (ARU) provides refrigeration in Rectisol
Section.
AMMONIA PLANT

The process gas from Rectisol Section is sent to the Nitrogen Wash Unit
(NWU) to remove the traces of impurities (CO, Methanol, and Methane)
by liquid Nitrogen wash. Nitrogen is further added to the process gas (i.e.
Hydrogen) to obtain a ratio of 3 : 1 of N2 & H2. This synthesis gas
mixture is compressed to 230 Kg/Cm2 pressure and synthesis of N2 and
H2 is carried out in the Haldor Topsoe loop in a radial flow Ammonia
Convertor and Ammonia is produced.

Oxygen requirement (for partial oxidation of fuel oil) and Nitrogen


requirement (for synthesis gas) is met by an Air Separation Unit of 900
MT/ Day capacity. In ASU, the atmospheric Air is compressed to 7
Kg/Cm2 and liquefied. Oxygen and Nitrogen are separated in HP and LP
Distillation columns at cryogenic temperatures.

UREA PLANT
Urea Plant is designed to produce 1,550 TPD based on Mitsui Toatsu
Total Recycle ‘C’ improved process. The Ammonia and Carbon Di-
oxide, produced in Ammonia plant, are pressurized to about 250 Kg/cm2
pressure. Synthesis takes place in Urea Reactor, where Ammonia and
CO2 react at 250 Kg/cm2 pressure and 200 degree C temperature to
produce Urea. The Reactor outlet products are then decomposed. The
Urea solution, produced in this process, is crystallized in the Vacuum
Crystallizer. Crystal slurry is centrifuged to separate crystals, which are
then dried in the dryer and pneumatically conveyed to the top of prilling
tower. Urea crystals are melted in the melter and the molten Urea is
sprayed through Acoustic Granulators from 68-meter high prilling tower.
Urea in the form of prills is collected at the bottom of the prilling tower
on CFD bed, where it is cooled by air. Products Urea is, then, sent to
Bagging Plant and bagged in 50 kg bags.

UREA PLANT

PROCESS OF MANUFACTURING UREA


For manufacturing urea, first of all fuel oil is burnt at 1350oC & we get
Carbon monoxide (CO) & Hydrogen (H2). With the help of air separation
unit Nitrogen gas is separated from air. Carbon monoxide is converted
into Carbon dioxide. Then Nitrogen & Hydrogen is combined to get
Ammonia & then by the reaction of Ammonia & Carbon dioxide we get
Urea. This is the whole process of manufacturing Urea:-

Burning at 1350oC
Fuel Oil CO + H2

Extracting

ASU (Air separation unit) N2 (Nitrogen) + O2 (oxygen)


N2 + 3H2 2NH3

CO CO2

NH3 + CO2 UREA

PRODUCT MANUFACTURED AT NFL, PANIPAT


MAIN PRODUCT –UREA

Kisan urea is highly concentrated, solid, nitrogenous fertilizer, containing


46.0% nitrogen. It is completely soluble in water hence nitrogen is easily
available to crops. Kisan Urea is ideally suitable for all type of crops and
for foliar spray, which instantly removes nitrogen deficiency. Kisan Urea
also has a strong and long lasting effect on crop resulting in quality crops.
Carbonic acid present in Kisan Urea helps in absorption of nutrients like
phosphate and potash by roots of crop.

PRODUCTION PERFORMANCE-
Peaks in production scale are as follows:-

RECORDS:

Highest production of ammonia on 1041MT (against 900MT/Day rated


single day capacity) on 02.1.1998
Highest production of urea on 1918MT (against 1550MT/Day
single day rated capacity) on 17.12.2000
Highest annual production of 316619MT (against 297000MT
ammonia rated capacity)
(97-98)
Highest annual production of urea 562250MT (against 511500MT
(97-98) rated capacity)
PERCENTAGE SHARE OF NFL IN COUNTRY’S
UREA PRODUCTION

OFF SITES & UTILITIES


The Off Sites and Utilities consist of following facilities:

Raw Water Reservoirs &Filtration Plant: To store 85 million gallon


of water to meet 7 days requirement. The filtration plant is of 2,400
M3/hr.

Demineralized Water: To supply 400 M3/hr.of demineralized water


and to polish 100 M3/hr. of condensate.

Steam Generation Plant: Three pulverized coal fired boiler of 150 T.


/hr. each at 105 kg/cm2 pressure and 495 degree C temperature.

Instrument and Plant Air: Four Instrument Air Compressors and one
Service Air Compressor, each of 1,420 NM3/hr.capacity.

Cooling Tower: Four cooling towers for Ammonia, Captive Power and
Urea Plants.
Coal Handling: To supply 150 MT/hr. of crushed coal to three Steam
Generation Plant Boilers and 200MT/hr. to Captive Power Plant Boiler.

Fuel Oil Handling and Storage: Three tanks for storage of fuel oil,
each of 10,000 KL capacity. Facility for unloading a rake of railway tank
wagons of fuel oil/LSHS.

LPG, Methanol, LDO and Caustic Handling: Facility for unloading


and storage.

Emergency Power: D.G. set of 1,500 KW capacities. Railway Siding:


To unload Coal, Fuel Oil, Caustic and Methanol. To load bagged urea.
To load unload liquid Ammonia.

SMC
S: - STEAM GENERATION PLANT
M: - MATERIAL HANDLING
C: - CAPTIVE POWER PLANT

CAPTIVE POWER PLANT


The Captive Power Plant has been installed to meet the total power
requirement of the plants. Two Turbo Generation of 15 MW each,
generate power at 11 KV. The Power Plant can be run in parallel with the
northern grid or in isolation. A Boiler of 210 t/hr. has been provided to
supply steam to the Turbo Generators and meet part of the steam
requirement of the process plants. The Boiler is designed to operate on
coal with support oil or fully on fuel oil.
AWARDS
&
RECOGNITION
AWARDS
NFL plants have all along remained recipients of several prestigious
awards based on improvements in productivity, safety, energy
conservation & environment. The company bagged a no. of awards
during 2006-07 & 2007-08 (up to Sep-2007). The Vijaipur unit has
received National Prashansa Patra Safety Award-2005 from National
Safety Council for outstanding safety management. Green Tech Safety
Award-2005 & Green Tech Environment Excellence Silver Award
-2006 & 2007 for outstanding achievement in environment management
in Fertilizer sector. Vijaypur II unit has also won 2nd prize & certificate
for Energy efficient unit in the national awards for excellence in Energy
management conducted by CII, Sohrabji Godrej Green Business Centre,
Chennai.

Type of Award Awarding agency Year


st
Productivity award Fertilizer Association of 1 in 2005
India, Govn. Of India 2nd in 2006
3rdin 2007
Environment Protection Haryana Pollution Board 1999,2002
& conservation Govn. Of Haryana
Jawaharlal Memorial International Green 2001-02, 2005
Award for best Pollution Land Society
Control measure
Environment Mgmt. & Haryana Pollution 2004
Conservation Award Control board
PM’s ShramVir Award Govn. Of India 2005
to four technician
Tech innovation Fertilizer Association of 1st in 2005-06
India, Govn. Of india
Golden Peacock Innov.. Institute of recognition, 2005
Award on innovation of New Delhi
Neem coated Urea
RECOGNITION

Type of recognition Recognizing Agency Period of


Recognition
ISO—9001 International Jan 2007
Certification
Services Pvt. Ltd.
ISO—14001 International Jan 2007
Certification
Services Pvt. Ltd.
ISO-- 18001 International Jan 2007
Certification
Services Pvt. Ltd.

ENVIRONMENTAL CONTROL & ECOLOGICAL


BALANCE AT, NFL PANIPAT
Panipat unit is acknowledged for its environmental friendliness. The unit
is fully conscious of its responsibility towards pollution control
&environmental protection. Utmost care is taken to ensure that no
harmful gases are discharged to the atmosphere. The unit is regularly
monitoring the level of emission for various stacks before letting down to
atmosphere.
In order to maintain ecological balance, in and around the factory and
township, a dense green belt has been provided and about 3 lakh trees
have been planted within the factory and township premises
.

SAFETY & FIRE


Management is always conscious about the safety of employees. Safety
Department, with well-qualified and experienced safety engineers, ensure
that working conditions are safe. Safety procedures are followed by all
and sundry. Safety department increases the awareness about safety
amongst the employees by way of seminars, exhibitions, slogans
bulletins, safety competitions and good house keeping contests. Practical
training is also given to the employees.
Unit has received number of awards, from national and international
organizations, for safety performance. National Safety Council of
Chicago has awarded the unit in 2004 for 6 millions man days without
occupational injury.
OBJECTIVE
➢ To produce and market fertilizers and by products efficiently and
economically besides achieving a reasonable and consistent
growth.

➢ To effectively manage the assets and resources of company to


ensure a reasonable return on investment and maximize internal
resources As part of diversification and maintenance soil health to
market other fertilizers in addition to nitrogenous fertilizers

➢ To maintain international quality of production and services as per


ISO –9002 and aiming at achieving customer satisfaction and
delight.

➢ To carry out R&D activities for increasing plant availability energy


savings, process improvement and utilizing efficiently in the
application of chemicals and fertilizers associating networking with
other company’s.

➢ To work out diversification expansion schemes to increase the


profitability of the company and to promote development of
ancillary industries consistent with the government policy.

➢ To provide services to the farming community by organizing


technical training, soil-testing facilities etc.

➢ To develop and maintain organization environment for


encouraging individual and group initiative innovation and
productivity and by improving employee’s skills through
specialized training.

➢ To achieve international standards of excellence in plant and


operational safety and maintaining environment as per international
standard ISO-14001.
VISION

A world class
Innovative
Competitive
Profitable Fertilizers Enterprise Providing total business solution.

MISSION

TO be leading Indian Fertilizers Enterprise providing quality product


system and service in the field of transportation, infrastructure, electricity
and other potential areas.

VALUES
Meeting commitment made to external and internal customer.
Foster Learning creativity and speed of response.
Respect for dignity and potential for individual.
Loyalty and ride in the Company
Team Playing.
H.R
MANAGEMENT

CORPORATE OBJECTIVE
➢ NFL is an instrument to the society .To achieve this NFL must:-
➢ Select capable people and improve their knowledge and skills on
organized basis.
➢ Motivate and enthuse the employees to achieve higher productivity
with team spirit.
➢ Lay down integrated objective, define individual goals and
maintain an atmosphere conducive to achieve this goal.

MICRO OBJECTIVES
➢ To achieve higher productivity.

➢ Conducting R & D.

➢ To increase profitability.

➢ To improve marketing and consumer services.

➢ To maintain and develop proper organizational environment.

➢ To work out diversification.

➢ To promote development of ancillary industry.

FUTURE PLANS
➢ The company has made plans to rewamp its fuel oil based Panipat
& Bathinda plants. The revamp aimed to make the fuel oil based
plants more energy efficient is awaiting the disinvestments of the
company.

HUMAN RESOURCE MANAGEMENT


An organization is a human grouping in which work is done for the
accomplishment of some specific goals or mission .In order to achieve the
goal a well run organization works out a set of rules sometimes called
polices, programmes, rules, regulations, procedure or guidelines. These
are designed not to restrict creativity but to assist its members in
accomplishment of the organizational goals.

To look after the various functions set for the organization adequate
resources in men and material s have to arranged but individuals who
serve as managers or supervisors with in organizations. There musty be
proper co-ordination of money, machinery, material and men. The
resources by themselves will not help the organization to accomplish the
objectives , unless there is an effective co-ordination and utilization of
these human resources .This is possible only by the combined efforts of
people the most important resources .Managing the human components
the central and most important task, because all else depends on how well
it is done .

It is the Human Resource, which is of paramount importance in the


success of any organization, because most of the problems in
organizational setting are human and social rather than physical, technical
or economical.

Human Resource, which is of paramount importance in the success of any


organizational because most of the problems in organizational settings are
human and social rather than physical, technical or economical.

Human Resources comprise a large number of individuals of different


sex, age, socio-religious groups and different education or literacy
standards. Each individual who works has his own set of needs, drives,
goals and experiences, so the management must therefore be aware not
only of the organization but also employees and self needs. No one of
these can be ignored so it’s the duty of manager to develop four
dimensional relationships these are:-

• Between management and workers.

• Workers themselves.

• Those among the managerial personnel.


.
• These among different members of the organization and the
community.

FUNCTIONS OF HR DEPARTMENT
AT N.F.L PANIPAT

1. ESTATE:- Estate means the part of land or the area that


comes under the NFL unit PANIPAT .It also includes township
and CISF colony of NFL .The houses are allocated to the
employees on the basis of their post or seniority . Mr B.S.
JANPANGI does proper utilization of land and building.

2. ADMINISTRATION:-Mr. JANPANGI is the head of


administration .He solves various problems related to the
administration of the organization. Under this role he also
makes arrangements for various tasks time to time.

3. HORTICULTURE:-Horticulture is related with the


maintenance of green grounds and to grow more &more trees in
order to keep environment clean and pollution free .To maintain
beauty & working environment inside the organization,
employees are encouraged for growing trees & to maintain
green grass parks.

4. FURNITURE AND FIXTURE:- Furniture & fixtures are


required by every organization . At NFL Panipat Mr.
JANPANGI makes proper arrangement of furniture & fixtures
as & when required.

5. DISPATCH:- Dispatch means the various letters ,circulars &


memos required by every organization for the proper
maintenance of their records. Mr. JANPANGI makes
arrangements for all these dispatch.

6. FAX /TELEPHONE:- fax /telephone is also required by


every organizations for making contacts with different deptt.
Inside organization also with other organizations. Mr.
JANGPANGI makes arrangements for all these according to
their requirements.

7. GUESTHOUSE:- As NFL unit Panipat is a big


organization, so visitors & outsiders come to visit it. There is
proper arrangement for their stay.

8. RECRUITMENT:-Whenever there is vacancy in the


organization then it tries to attract more and more people to
apply for that. Recruitment is not a process of selecting the
candidates but it ends with the receipt of applications.
9. ESTABLISHMENT:-Once a candidate is selected for a
particular post, then all his documents relating to qualification,
age & other factors are verified in establishment department.
Also the activities & performance of every employee including
promotions are recorded in it. Mr. ALOK VERMA handles all
these activities.

10. PUBLIC RELATIONS:- The public relations of an


enterprise affects its profits to a large extent .Mr. ALOK
VERMA tries to establish harmonious relations with the
members of public to increase the profitability of the enterprise .

11. MEDICAL CLAIMS:- As NFL provides medical facilities


to all of its employees .NFL gives fund to its employees against
their proper medical claims. Mr. ALOK VERMA verifies all the
documents relating to medical claim.

12. COMPUTERISATION:- In the present scenario the role


of computers is very important in every organization. These
stores huge amount of information relating to enterprise.

13. STATISTICAL CELL:- Various documents are required


by the organization for the proper flow of information from one
place to another. Mr. ALOK VERMA handles statistical
document.

14. APPRENTICE:-There is a provision for the training of


apprentice inside NFL. Mr. ALOK VERMA handles trade &
technical apprentice.

15. INSURANCE:-Mr. ALOK VERMA handles the problems


relating to the insurance of employees

16. LIAISONING:-Mr. ALOK VERMA also works as liaison


officer .In the role of liaison officer he tries to establish
harmonious relations with other departments & other
organizations to improve the productivity of the organization.

17. WELFARE:- Every organization has some welfare policies.


These policies may relate to performance & promotion of
employees.
18. LEGAL:-An organization may face many legal problems
relating to organization & employee. Dy. Mgr handles all the
legal problems.

SOME OTHER IMPORTANT


FUNCTIONS OF HRD

Assessing training needs for Tech. apprentice


employees

Organizing house training programmes

FUNCTION OF PERSONNEL MANAGEMENT


The function of personnel management may be divided into three parts-

MANAGERIAL OPERATIVE ADVISORY

Planning Procurement of personnel Rules & regulations

Organizing Development of personnel Laws

Staffing Compensation to personnel Discipline

Directing Employees benefit schemes Code of conduct

Controlling Maintaining good industrial


relations
Record keeping
Personnel planning & Evaluations

Personnel audit & Research

P&A AS A CENTRAL SUB SYSTEM IN AN


ORGANISATION

FINANCE
SUBSYSTEM

P&A TECHNICAL
MATERIAL SUB SYSTEM SUBSYSTEM
SUBSYSTEM

MARKETTING
SUBSYSTEM

OBJECTIVES OF P&A
The objective of P&A is to attain maximum individual development,
desirable working relationship between employers & employees and
employees & employees. So there must be effective molding of human
resources as contrasted with physical resources. As a result there is an
integration of interests of employees and management:

INTEGRATION OF INTERESTS

EMPLOYEES INTEREST MANAGEMENT INTEREST


Recognize as an individual. Lowest unit personnel cost

Opportunity for expression Maximum productivity

Economic security Availability and stability

Interest in work Co-operation of employees

Safety, healthy working conditions Loyalty of employees

Acceptable hours of work High org morale

Fair and efficient leadership Intelligent initiative of emp.

HUMAN RESOURCE DEVELOPMENT


AT
PANIPAT UNIT
The company considers its employees as its greatest asset. It takes care of
training needs of the individual employees. A separate HRD Department
is established for the purpose.

HRD Department, periodically organizes in house training programmes


for the development of skills and updating the knowledge of the
employees. The employees are also deputed for institutional training
conducted by outside agencies.
The managerial staff is exposed to the management programs like
motivation, communication, team building, leadership etc.

For the less qualified employees, there is a scheme to improve their


qualification. Part time classes are conducted for advanced courses.

HRD section organizes productivity week and the oil conservation week,
in which the expert faculty on various aspects of the topics systematically
educates the employees systematically educates employees.
HRD
Sw anson
 T ra in in g
HR DEPARTMENT HIERARCHY

G.M
(HR)

Sr.MANAGER Chief. MANAGER Additional


HRD P&A CMO

Dy.MGR
(P&A)
MANAGER MANAGER
(P&A) (P&A)

WELFARE,
SCHOOL,
CISF.
ESTATE,
CTV,
SANITATIO
MEDICAL P.R

CANTEEN,
STATISTICAL, ESTABLISHMENT FURNITURE,
COMPUTER, BUDGET
ACR/APPS/
RECRUITMENT. TEL, FAX
GUEST DAIRY
HOUSE &
DISPATCH/
HINDI
INDUSTRIAL RELATIONS

“Industrial relations “refer to a dynamic and developing concept


which is not limited to “the complex of relations between trade union and
management but also refers to the general web of relationship normally
obtaining between employer and employee- a web much more complex
then the simple concept PF labour-capital conflict”.

Industrial relations at Panipat Unit have always been cordial. There


is always a communal harmony and all the festivals are celebrated
together by all the communities. At panipat unit there is only one
registered and recognized workers union i.e. NFEU. The union is
affiliated to FWFI. The scheme of workers participation is operated at
Unit level. Under this scheme a Plant level committee and six shop
councils are functioning satisfactorily. These are: -

➢ Work committee

➢ Canteen advisory committee

➢ Township Welfare Committee

➢ Special Welfare Fund Committee

➢ Grievance Redressal Committee

➢ Livery Committee

➢ Managing Committee of Manoranjan Kendra

➢ Sports committee
DEVELIONEBTS OF INDUSTRIAL RELATIONS – IN INDIA.
S1.NO. Contents Page No.
1. Introduction. 1
2. Industrial Relations 1
3. Approaches. 3
3.1 Legislative Approach. 3
3.2 Industrial Disputes Act. 3
3.2.1 Works Committee. 4.
3.2.2 Industrial Employment 4.
(Standing Order) Act.
3.3 Voluntary Approach. 6.
3.4 Joint Management Councils. 6.
3.5 Voluntary Arbitration. 7.
3.6 Joint Consultation. 7.
3.7 Voluntary Arbitration. 8.
3.8 Collective Bargaining. 8.
3.9 National Commission On Labour. 9.
3.10 Worker’s Participation in Mgt. 9.
4. Effects of Best Industrial Relations 10.
5. Conclusion. 11.
DEVELIONEBTS OF INDUSTRIAL RELATIONS – IN INDIA.

1. Introduction.
The history of industrial Relations ins incomplete without an account of the
rise of the organized labour movement in the country. In this section, an
attempt is made to describe the rise and growth of the trade union movements
in India. Because of this success in organizing labour in important industries,
trade unions now have a significant role in the industrial life of the country,
inspite of the fact that the number of workers organized in industry in the
country really start after the first World War, though prior to that some
attempts were made here and there to organize the labour in unions. In the
early days of industrialization, the condition of labour was rather appalling and
there was no regulation in respect of working conditions and hours of works.
Not only that the labour was often physically mal-treated, child labour was
also employed. There was very little effort on the part of the Government to
do away with these practices. However, due to various reasons and pressures,
the Government eventually had to do come thing for the conditions of the
labour. The result of such efforts brought about the introduction of Factories
Act to regulate to hours of work and the working condition of labour
employed in the Factories.
2. Industrial Relations.
Industrial Relations generally mean the relationship between the management and the
organized labour in an industrial organization of within an industry. Among the various
important factors which determine and regulate this relationship are the industrial
relation policy of the organization, attitudes of both the management and the labour,
strength if the labour unions multiplicity of unions, joint consultation and labour
legislations. Industrial Relations, However, is primarily a matter of attitudes, i.e., how
does the management feel about the labour and vice. Good relationship can not ,
however, be grown overnight, but has to be developed by both the parties, over a
period. It is only through an attitude of mutual trust and respect that harmonious and
cordial industrial relation can develop in an organization of industry.
(2) Harmonious industrial relation within an organization is
essential for its efficient running. No organization can function
effectively and produce the goods and services if there are constant
strafes and turmoil between the management and the labour. It is
impossible to introduce any innovation or effect any productivity
improvement exclusively through the various industrial engineering
techniques. Looking at industrial relations, therefore, from a broader
national and economic view point, it is an important pre- requisite for
national and economic growth of the country. One of the major
problems of developing countries is to increase the per capita income
of the population through rapid industrialization as well as through
improvement in agricultural field. Industrialization will create more
employment opportunities and will help in achieving better standard of
living. For raid industrialization, climate has to be created which will
encourage investment and attract the enterprise. One of the major
actors which attracts investment is the state of industrial peace. No
nation can take up a programmer of industrialist ion unless the proper
climate prevails. Strafes, un-rests, and lock – outs only lead to loss of
man – days in i9ndustries and consequent monetary loss to the nation
in terms of lost production.
Everyone whether he is a member of the management or a
worker has the responsibility for improving the situation. As a member
of a management team, the supervisor is in the fortunate position of
being in direct contact with workmen. His role, therefore can be of
immense value in promoting good industrial relations in the
organization, Frictions and strifes are very often results of unresolved
minor day-to – day grievances, favouritism, bad human relation and
numerous other reasons which the supervisor may be in a position to
take care of. Earlier it was mentioned that good industrial relations is
primarily a matter of attitude between the management and the workers
and has to be constantly nurtured by both the parties. It is through daily
dealing. Justice and prompt handling of grievances that such a spirit of
mutual confidence and trust can be built up between the supervisor and
his men It should, however, be thought that it is only the Supervisor in
the organistion who is responsible for promoting good industrial
relations, but it is the responsibility of every member of the
organistation. Some of the causes of the disputes may be well beyond
his authority to remove and may be requiring the action of the higher
management. Nevertheless, his role is stressed because of his unique
position in the organization. The supervisor, if he is to carry – out his
role effectively to promote good important labour legislations and
agencies to settle desputes.
3. Approaches
Industrial Relations in India today is regulated through compulsory measures such as-s,
legislations, adjudications etc. As well as through voluntary efforts like collective
bargaining, joint consultation etc. though by industrial relations we primarily mean the
relationship between the management and the organised labour, the Government or
Stateplays an important role in regulating this relationship either through intervention or
influence.
Legislative Approach
The Government plays a dominant role in shaping the pattern of industrial relations in
the country. Historiqlly, this had been mainly through various labour legislations.
Conditions of labour also have an important bearing on industrial relations. Beginning
in the twenties, when organised labour movement started to take shape, different
legislations were passed from time to time aiming to improve the donditions of labour
as well to regulate the relationship between the employer and the employee. Among the
legislations passed during the 1920’ (s mention can be made of the amendment to the
factories Act in 1922, the workmen’s Compensation Act, 1923, and the Mines Act,
1923 in respect of the former and the Indian Trade union Act of 1926 and the trade
disputes Act, 1929 in respect of the latter.
3.2 Industrial Disputes Act.
In the year immediately following independence, the task before the national
Government was to meet the problem of rapid industrialization. To meet this urgent
need, it was considered necessary by the Government to continue the practice of
regulating industrial relations through legislations. The result was the introductions of
an important piece of legislation the industrial disputes Act, 1947, which made a great
impact on the industrial relations in the country. The most salient feature of this act is
that in the case of an industrial dispute between two parties in an industrial
establishment, the dispute is subjected to compulsory adjudication if there is a failure in
conciliation proceedings. In other words, this means, that when two parties can not
resolve their dispute or can not arrive at a settlement in spite of the efforts of
conciliation officer or a board, then the government compels both the parties to go to a
labour qourt, or a tribunal to have their disputes resolved thorugh the process of law.
Legal proceedings are always expensive, time consuming and mostly unsatisfactory.

(4) Thus the resolution of a dispute by legal means, more often than not fails to bring
about satisfactory results. Under the circumstances, it has often been questioned, as to
whether it is correct on the part of the government to force parties to for compulsory
adjudication.
The genesis for the provision of this section in the Act can be treated to defense of
India rules during the Second World War, which prohibited strikes and lock-outs and
reference of disputes to adjudication was compulsory. In framing the Industrial disputes
Act, this feature of compulsory adjudication was incorporated and in spite of sever
criticism, is being retained.
The other notable features of the Act are the provisions relating to the formation of the
works committee, conciliation and adjudication machinery, procedures for arbitration
etc.
3.2.1. Works committee.
The Act stipulates the formation of works committees in industrial
establishments, where 100 or
More workmen are employed. The duties of such works committees, as has
been prescribed under the
Act, are to promote mea-sores for securing and preserving amity and good
relations between the
Employers and workmen and to that end to comment upon matters of their
common interest or concern and endeavourer to compose any material difference of
opinion in respect of such matters. Works committee should contain equal number of
representatives from management and workmen.
The formation of works committee is a statutory attempt to foster a spirit of joint
consultation between the employer and the workmen. Though works committees have
been functioning over a considerable period, they have not achieved their purpose
very largely due to the fact they have not been able to dispel some of the
misconceptions about them and such have not taken deep roots in our industrial the
adequate backing of the trade-unions and their areas and functions backing of the
properly demarcated, though of late some attempts have been made to revive the
activities of the works committee and to rectify earlier mistakes.
3.2.2. Industrial employment (standing orders) Ac
The industrial employment (standing orders) Act, 1946, is another important
piece of legislation, which also has profound impact on the industrial relations.
Though the Act, was passed immediately before the coming of the national
government, nevertheless it was the great use in the past independence period.

(5) It has been observed that the cause of poor industrial relations in many cases was
due to the fact that the conditions of service were not properly defined. Because the
conditions were ill defined, there had been often friction between supervisors and
workmen, between the management and the labour both on the shop floor, and as well
as in the undertaking in matters like wages, hours of work, discipline etc.
The main features of the Act are that it is obligatory on the part of the employer of
Industrial undertaking to prepare standing orders when it employs, a certain number
of workers. The Act lays down the procedures to be adopted for certification of the
standing orders, which the employer wishes to adopt for his organization. Here, the
Act has laid down when and how the draft standing orders are to be submitted to the
certifying officer for the certification of the draft. Certair conditions have to be
fulfilled before the standing orders are finally certifying officer, before certification
officers or the appellate authority are empowered to determine the fairies or
reasonableness of the provisions of any standing orders. The certifying officer, before
certification of the draft standing orders gives opportunity to be heard and finally
decides if any additions or modifications are necessary. The Act has also provisions
for appeal to appellate authority. The appellate authority, whose decisions are final,
can confirm or amend the standing orders, if necessary. Standing orders after
certification have to be posted prominently in gates for the benefit of workers.
Unfortunately, though the display of standing orders is a legal obligation and may be
posted prominently, as well as should be taken to remedy this state of affair, because
the whole purpose of having standing orders in an obligation gets defeated if the
employees and they other personnel in the organization are not aware of the various
matters provided therein.
Standing orders once certified can not be modified can not be modified until the
expirty of six(6) months of from the date of the last modification, except of course
when both the employer and theworkemen desire such change through an agreement.
There are occasions when disputes of disagreement arises as to the application or
interpretation of standing order. In such cases, the Industrial Disputes Act.1947, for
giving a verdict on the matter. The Act also lays down prescribed penalities for an
employer for failure to have standing orders for this establishment as well as for
commissioning any act in contravention to the certified standing orders.
Voluntary Approach.
The other approach to the shaping of industrial relations is through voluntarism.
The thinking behind this approach is that while the legislations will introduce the
element of compulsion in industrial relations, opportunities for consultation among the
parties should also be considered, to regulate their relationship. If consensus is arrived
at through voluntary discussion and mutual consultations, the element of more
obligation prevails to honour the commitments. While this object in view a tripartite
body on an all India basis comprising of representatives of the Employers, Labour and
Government Known as the Indian Labour Conference was set-up in 1942 to have mutal
consultation on matters affecting the labour. The conference is held annually and
various issues are discusses and the conclusion and the recommendation become
morally binding to the Parties.
Among the important conclusions arrived at so far, mention can be made
to the recommendations on the workers participation in Management, Model Grievance
procedure, code of discipline in Industry, Criteria for recognition of Trade Union etc,

3.4 Joint Management Councils.


Arising in the Indian Labour Conference 1957 was the
recommendations for the formation of JMC’s in Industrial undertaking .
The idea underlined the formation of JMS was it give the workers a sense
of participation on the voluntary basis and the associate the labour for
higher productivity, affording the workers an opportunity to express
themselves and to make then appreciate their role for better industrial
relations. Accordingly a scheme of JMS was introduce in 1958. In such
councils, it was envisaged that matter of mutual interest may be discussed
between the representatives of employers and the workers who will be
equally represented. The matter, which should be excluded form, such
discussion are those relating to wages, bonus etc.
JMS, however, did not succeed because of various
reasons among which it may be mentioned that the workers did not
appreciate of understand their roles in the council appreciate of
understand their roles in the council. There was either a good degree off
apathy and lack of interest on one hand and on the other hand there was
challenge to management prerogatives and functions from worker’s
representatives. The reason ascribed by the labour for the functioning of
the J.MCS are tha5t there was an unwillingness on the part of
Management to share information as well as to go for genuine
consultation. The experiments however, have been carried out in many of
the public sector undertakings like Hindustan Machine Tools and NCDC
etc. In places where JMCs have functioned successfully, it has been
observed that productivity has increased, the labour forces have been
established, a reduction in waste and by and large, better industrial
relation prevailed.
“ACCORDING TO Indian Labour Year Book of 1968, JMCS
functioning in 89 establishments- 34 in the scheme till the beginning of
1969.”
3.5 Grievance Procedure.
Since grievances on the plant level are one of the sources which can
affect harmonious industrial relations, it was considered necessary in one
of the Indian Labour conferences to lay-down a system of grievance
procedure by speedy settlement of grievances. Accordingly model
grievance procedures were evolved and these have been adopted by a
number of industrial undertakings in settling the grievances of the
employees.
3.6 Joint Consultation
The process of joint consultation is an essential requirement for
harmonious industrial relations in industry as well as in the individual
industrial undertakings. The machinery set-up for consultation between the
management labour and the Government standing Labour committee,
wages Boards etc. are come of the other committees of tripartite character,
At the plant level, the works committee and JMCS are machinery for joint
consultation. The role of these bodies have been discusses earlier.
Wage boards have been created as a tripartite body with
representatives of the management, labour and Govt.and theater function
had been the fixation of wages on an industry-wise basis. Wage boards
have been set – up in many industries such as engineering. Plantation,
Chemicals, iron and steel, coal mining etc. Many of them have submitted
their recommendation industry-wise wage scales, but unfortunately in
many cases there had been a delay in the implementation of the
recommendation of the wage Boards. Wage boards, however, have also
been criticized for the time taken by them in recommendation of wage
scales. One of the major difficulties in respect of the recommendations of
the wage boards was that their adoption was not obligatory and as a result
of which there arose a number of disputes in respect of their
implementation. There is a thinking now to make these recommendations
obligatory.
3.7 Voluntary Arbitration.
It has been mentioned earlier that in the event of an
industrial dispute, which could nor be settled through the process of
conciliation the industrial Disuses act provides for the compulsory
adjudication i.e the parties involved in the disputes are forced to go to a
labour court of a Tribunal. Lateran, a provision has been introduced in the
industrial Disputes Act for arbitration . This makes that between the time
when a fuller report is given by the conciliation machinery to the
Government and the time it is deferred to the adjudication machinery, the
parties by joint agreement can go for voluntary arbitration. Voluntary
Arbitration makes that bot the parties agree to have their disputes
resolved by an arbitrator mutually agreed upon shoes decision they are
agreeable by. In other words, arbitration offers the opportunity for a
voluntary solution of the disputes. The process of arbitration, therefore,
can save expenditure and time for both the parties. Arbitration in this
country unfortunately has not gained much ground, mainly because of
two reasons. One is that there is no appeal against the arbitration’s award
and the other is dearth of suitable persons to act as arbitrators. In the case
of adjudication both the parties have the opportunity fo0r appeal to the
higher counts if the award is not favorable to them and can even go up to
the Supreme Court. This is one of the reasons which arbitration has not
found favour in the country.
In the western countries, arbitrators can be selected from the
panels maintained with considerable experience in the industry in which
the dispute arises. The position is not similar here. From the point of vies
of the industrial Relations, an arbitrator’s award is often more satisfactory
than an adjudication award, since both the parties agree to go for
arbitration. However, the success of voluntary arbitration would very
much depend on the state of relationship between the parties.
3.8 Collective Bargaining.
Collective Bargaining is an important feature in industrial Relations .
The main meaning of collecting Bargaining is that management and the
labour directly negotiate the terms and conditions of employment of other
related issues and in that process backing with each other and arrive at
mutually acceptable agreements for a period time. There can be collective
bargaining both for an industrial unit of an industry.
The merits of collecting bargaining lies on the fact that since
agreements are arrived at through mutual voluntary negotiations, the
parties are bound by honor to above by such agreements. The success of
collective bargaining, however, depends on the following important
factors:-
There must be an acceptable and recognized bargaining agent. That means
that there must be recognized union or union to negotiate the terms and
conditions of the agreement with the management.
The attitude of the management and the union towards each other. Unless
there is a sense of mutual trust and confidence, collective bargaining is
unlikely to work.
Respecting the rights of the unions and the prerogatives at the management
by both the parties .
Skill of the negotiators in collective bargaining.
Collective bargaining is the best means by which harmonious industrial
relations can be achieved both at the plant and industry level. As has been
mentioned d\earlier that through the process of collective bargaining,
collective agreements are arrived at either for a period of time in the case
of a short term agreement which can be for one year of for long term
agreements which can be for the period between 3 to 5 years. Such
agreements contain specific terms and conditions which are arrived at
through the process of collective bargaining.
It is understood by the parties that during the period the operation of
the agreement neither of the parties will bring up issues which are likely of
collective bargaining adjudication is avoided and it stabiles industrial
peace.
3.9 National Commission on Labour.
National commission on labour was appointed in the year 1966 to
investigate into the various aspects of labour problems. The commission
which submitted its final report on the basis of the studies carried out on
specific subject and labour problems of industries, made important
recommendations in respect of industrial relations. The commission
recommended the formation of industrial Relations commission to deal
with conciliation and adjudication of industrial disputes such commissions
have been recommended to be formed at the center and a well as in the
states. The commission to be formed at the center will be a National
commission , which deal with all disputes of national importance.
3.10 Worker’s Participation in Management.
Some countries have used voluntarily while some have been forced
by law. All these mean to increase production and productivity. This is also
a new to India. Mahatma Gandhi has accepted both labour and capital as
member of the same family. He liked to establish with village democracy
and industrial democracy. International Labour conference 13th session
considered democracy. Labour Minister of France accepting accepting the
proposal said, “Labour cooperation can be had only when their honour is
safe.” Participation means co- functioning, playing one’s part in an
integrative unity contributing all that one is capable of to the good of the
organization. Participation rests on two foundation stones- co- ordination
and understanding. We need openers and explicitness in discussion. It is a
mental and emotional involvement of a person in a group situation which
encourages him to contribute to group goals of objectives and share
responsibilities. Workers Participation in management encourages workers
to accept responsibility, change, better decisions, team etc. Because
industry is now considered as a social institution. The management
employees and the community have the equal interests in the survival and
prosperity of industry.
It is naturally opposed to the master servant relationship as
well as to labour legislation. Between labour and management. It needs
maximum cooperation. Decision are taken by employers and employees,
the two main parties as equal co- eperat partners.

From of participative management.


➢ Employee Directors.
➢ Suggestion Progremme of plans.
➢ Multiple Management (Committee System)
➢ Labour Management Cooperation.
➢ Democratize supervision of Management.
➢ Consultative supervision or Management
➢ Worker’s Associaition.
➢ Joint Consultative committee
➢ Co-partnership.
➢ Bipartite Associations.

So the idea of labour partnership in management is an


important idea as it is an essential step to improve labour relations. By
participation in management, workers become a part of management, thus
they do not give birth to labour dispute without any reason. All labour
problems are solved mutually.

1. Effects of Best Industrial Relations.

➢ Growth in worked’s unity.


➢ Improvement in working conditions.
➢ Improvement in wages.
➢ Progress of labour unions.
➢ Enactment of labour laws.
➢ Improvement in industrialists treatment.
➢ Increase the morale of the workers.
➢ Increase the production.
➢ Improves the quality.
➢ Improves the efficiency of the workman.
➢ New development schemes are promoted.
➢ Reduces per unit production cost.
➢ Workers get job satisfaction.
➢ It gives a place of honour to workers.
➢ Problem is solved by mutual consent.
➢ It develops many incentives schemes.
➢ It reduces accidents.
➢ It reduces strikes ]
➢ Estalblishment of industrial democracy.
➢ Lack of external control
➢ Increase In worabillty of workers.
➢ End of industrial struggles.
➢ Increase in mutual good feeling.
➢ It reduces absentism.
➢ Growth of collective bargaining.
➢ It creats motivation.

1. conclusion.
It will be evident that the problems of industrial relations in the country
have been approached in which compulsive measures have been
emphasised on onehand and on the other the voluntary approach has been
encouraged. Over dependence on legislative measures has been severely
criticised on the ground that such measure tend to take away the initiative
from both the parties to forge their relationship on the basis of mutual
understanding and respect. Too much protection or having disputes
resolved through adjudication mostly to do satisfy parties. From that point
of view legislative measures do not really encourage harmonious industrial
relations which can have a lasting value. Further,it,tends to inhibit the
growth of collective bargaining so necessary for healthy growth of
industrial relations. It may, therefore, require some re-thinking on the part
of the state to determine how for further legislations should be introduced
to regulate industrial relations in the country. Development of collective
bargaining and acceptance of joint consultation as the means for promoting
better industrial relations in the country. Development of collective
bargaining and acceptance of joint consultations as the means for
promoting better industrial relations, should get greater consideration than
had been given hitherto. Though there are many obstacles in the process
still they are the means though which more lasting industrial peace is likely
to come. Therefore, wherever possible, collective bargaining in its true
sense should be encouraged to develop both at the plant and industry level.

INTRODUCTION
TO
WELFARE
MEANING OF WELFARE
Industrial progress depends on a satisfied labour force and in this
connection the importance of Labour welfare measures were accepted as
early as 1931, when the royal commission on Labour stated, the benefits,
which go under these nomenclature are of great importance to the worker
and which he is unable to secure by himself. The Schemes of Labour
Welfare may be regarded as a ‘Wise Investment’ which should and
usually doing bring a profitable return in the form greater efficiency.

The encyclopedia of social science has defined Labour welfare work as,
the voluntary efforts of the employer to establish, within the existing
Industrial system, working and sometimes living and cultural conditions
of the Employers beyond what is required by Law, the custom of the
country and the condition of the Market.

In the broader sense, if any include not only the minimum standard
of hygiene and safety laid down in general Labour legislation, but also
such as aspects of working life as Social Insurance schemes, measures for
the protections of women and young worker, Limitation of hours of work,
paid vacation etc. In narrow sense welfare in addition to general Physical
working conditions, is mainly concerned with the day-to-day problems of
the workers and the social relationship at place of work.

Welfare is the work, which is usually undertaken within the


premises or in the vicinity of undertaking for the benefit of employee and
the members of his family.

The purpose of providing welfare amenities is to bring about


development of the whole personality of the worker is social,
psychological, economic, moral, cultural and intellectual development to
make him a good worker a good citizen and a good member of the family
.
THE CONCEPT OF WELFARE
The concept of welfare means some amenities, other than the
monetary benefits which are required to be provided to the workers by
their employers. Such measures are required to maintain the standard of
living of the workers to some extent. The central and the state
government have made rules for the safety and welfare facilities for the
workers. In this context so many Acts have been enacted under which
certain provisions are statutorily required from the employers. These
different Acts have covered almost all categories of workers. These Acts
are as under: -
➢ FACTORIES ACT, 1948
➢ MINES ACT, 1952
➢ LABOUR PLANTATION ACT, 1951
➢ MOTOR TRANSPORT WORKERS ACT, 1961
➢ CONTRACT LABOUR REGULATION & ABOLITION ACT,
1970
➢ INTER STATE MIGRANT WORKERS ACT, 1979
All these acts provide some amenities, which are statutory required.
But in practical viewpoint, it is the need of the time that there should be
one piece of legislation which can protect the interest of almost all the
workers. The introduction of all the provisions of these Acts is not
satisfactory. Effective arrangements should be made for the introduction
of all these Acts. Special staff should be recruited and maintained to
watch the irregularities in the factories and establishments and to award
suitable punishments to the defaulters.

WELFARE MEASURES GIVEN IN


FACTORIES ACT-1948
Factories act provides some measures for welfare of employees. Each and
every organization covered under the Factory Act-1948 has to apply these
measures. These provisions are given in chapter (5) of the Act. These can
be enumerated as Follows: -

Following Provisions relate to the measures to be taken for the Welfare of


Workers.

1. WASHING FACILITY (Sec-42): -


Section 42 provides that every factory should provide and maintain
adequate and suitable washing facilities for its workers. For the use of
male and female - such Facilities should be separate and adequately
screened. Such facilities should be conveniently accessible for all workers
and be kept in the state of Cleanliness. The state Government is
empowered to make rules prescribing standards of adequate and suitable
washing facility.
2. FACILITIES FOR STORING AND DRYING
CLOTHING (Sec-43): -

Section-43 empowers the state government in respect of any factory or


class or description of factories to make rules requiring the provisions,
their in of (i) suitable places for keeping clothing not worn during
working hours, and (ii) for drying of wet clothing.
3. FACILITIES FOR SITTING (Sec –44): -

There are certain operations, which are performed by the workers only
in a standing position. This not only affects the health of a worker but his
efficiency also. According to section 44(1), every factory shall provide
and maintain suitable facilities for sitting, for those who work in the
standing position so that they may take advantage of any opportunity for
rest, which may occur in the course of their work.

4. FIRST-AID APPLIANCES (Sec 45): -

The following arrangement should be made in every factory in respect


of first-aid facilities.
a) Provision of at least first-aid box or cupboard, subject to following
conditions, for every 150 workers ordinarily employed at any one
time in the factory.
b) It should be equipped with prescribed contents and nothing else
should be stored in it.

c) It should be personally maintained and readily accessible during all


working hours.
d) A responsible person who holds a certificate in first-aid treatment,
recognized by the state government should be made the in-charge
of first -aid box or cupboard. Such a person should be readily
available during working hours of the factory. Where there are
different shifts in the factory, a separate person may be appointed
for each shift, provided he is responsible person and trained in
first- aid treatment.

e) Where more then 500 workers are ordinarily employed in a factory,


an ambulance should be provided and maintained by every such
factory. Such room should be of prescribed size containing
prescribed equipments and is in the charge of such medical and nursing
staff as may be prescribed.

5. CANTEENS (Sec-46): -

a) The state government may make rules requiring that in any


specified factory where more than 250 workers are ordinarily
employed, a canteen or canteens shall be provided and maintained
by the occupier for the use of workers.
b) Such rule may relate to any of the following matter: -

(i) The data by which canteen shall be provided.

(ii) The standard in respect of construction, accommodation, furniture and


other equipment of the canteen.

(iii) The foodstuff to be served and the price to be charged.

(iv) The item of expenditure in the running of the canteen, which are not
to be taken into account in fixing in the cost of foodstuffs and which shall
be born by the employer.

(v) The constitution of a managing committee for the canteen and


representation of thes workers in the management of the canteen.

(vi) The delegation, to the Chief inspector, subject to such conditions as


may be prescribed, of the power to make rules under clause (iii).

6. SHELTERS, REST ROOMS AND LUNCH ROOMS (Sec-47): -

The provision of some sort of shelter is must, where the workers can take
their meals brought by them during rest interval. The following
provisions have been made in this respect:

(i) In every factory where more then 150 workers are


ordinarily employed, the occupier should make adequate
and suitable arrangement for shelters or rest rooms and
lunch room with provision of drinking water where the
workers can take rest or eat meals brought by them.

(ii) Such places should be equipped with the facility of


drinking water.

(iii) Such places should be sufficiently lightened, ventilated


and kept in cool and clean conditions.

(iv) The construction and accommodation, furniture and


equipment of such places should confirm the standards, if
any, laid down by the state government. By a notification
in the official gazette, the state government may accept
any factory from the compliance of these provisions.

7. CRECHES (Sec -48): -

Following provisions have been made in respect of crèches in the


factories: -
(i) In every factory where there are more than 30 women
workers ordinarily employed, the facility of suitable
room or rooms should be provided and maintained for the
use of children under the age of six years of such women.

(ii) There should be adequate accommodation in such rooms

(iii) This place should be sufficiently lightened and ventilated


and kept in clean and sanitary conditions.

(iv) Women trained in the case of children and infants should


be made in-charge of such rooms.

8. WELFARE OFFICERS (Sec-49): -

In every factory where in 500 or more workers are ordinarily employed,


the occupier should employ such number or welfare officers as may be
prescribed. The state government is empowered to prescribe the duties,
qualification and conditions of service of such welfare officers. The
provisions of section -49 also applied to seasonal factories like sugar
factories etc.

9. POWER TO MAKE RULES (Sec-50): -


The state Government is empowered to make rules exempting and
factory or class or description of factories from the compliance of
provisions of this chapter, provided after native arrangements for workers
welfare have been made to the satisfaction of the authorities. Such rules
may require that workers representative shall be associated with the
management of the welfare arrangement of the workers.

CLASSIFICATION OF WELFARE MEASURES

Welfare work may be classified in various ways: -


Firstly, it may be classified into the following three categories:

Statutory Welfare Work: Some welfare work may be distinguished


from the categories in that, it comprise of those provisions of welfare
work whose observance is binding on employers under various
enactments.

Voluntary Welfare Work: this category includes all those activities


conducive to the welfare of the workers, which are undertaken by the
employers themselves of their own free will. Some social organizations
also undertake this type of work.

Mutual Welfare Work: it means a corporate enterprise of the workers


with a view to make improvement in their lot. Activities of the trade
unions, which are conducive to the welfare of their members, are
included in this category.

Further welfare measures may be classified into two categories:

Welfare Work inside the factory: this is the intra – mural welfare work
including various facilities and amenities provided to the workers inside
the factory e.g. provision of drinking water, cleanliness and sanitation,
canteens, crèches, medical facilities, first aid appliances etc.

Welfare Work outside the factory: This is called extra- mural welfare
work including the provisions of facilities outside the factory e.g.
provision of educational and recreational facilities, amusements, games
and sports, housing and medical facilities, transport, etc.

SCOPE OF EMPLOYEES WELFARE


According to the committee on employees welfare, welfare services
should mean such services, facilities and amenities as adequate canteens,
rest and recreation facilities, sanitary and medical facilities, arrangements
for travel to and from the accommodation of workers employed at a
distance from their homes and such other services, amenities and
facilities including social security measures, which contribute to
conditions under which workers are employed.

Employee welfare includes both Statutory as well as non-statutory


activities undertaken by any of the three Agencies: -

➢ Employers

➢ Trade Union

➢ Government for the physical and mental development of workers.

SIGNIFICANCE OF EMPLOYEE WELFARE

The logic behind providing welfare facilities is to create efficient,


healthy loyal and satisfied Labour force for the organization and also for
the nation. In India, industrial workers get the benefit of various welfare
facilities. The purpose is to provide them better life and also to make
them happy and efficient. The other equally important purpose is to raise
their productivity

EMPLOYEES WEFARE AT NFL ,PANIPAT


The Company is very conscious of the Welfare of its Employees. It
provides a number of facilities to the employees at all the unit.

➢ At PANIPAT UNIT, there is a Modern Township, which is spread


over an Area of 100 acres. There are 900 Dwellings in Township.
➢ Company has provided 30-Bed HOSPITAL in Heart of Township.
Hospital is equipped with necessary Facilities like X-Ray, Clinical
laboratory, operation theatre, E.C.G, Respiratory Equipment etc.

➢ Management Provides Canteen Facility to its Employees in


Factory.

➢ Playground for all Outdoor games.

➢ A Community Hall to sit 600 Persons.

➢ School (Kendriya Vidyalaya)

➢ Shopping Center

➢ Members Club

➢ Bank and Post-Office.

➢ Facility of ATM in NFL Township.


WELFARE SCHEMES

AIMS AND OBJECTIVES OF WELFARE


SCHEMES
The aim and objectives of welfare schemes are as follows: -
➢ It is good since it enables the workers to enjoy a richer and fuller
life by providing them those amenities and conveniences of life,
which they themselves cannot provide.

➢ It is partly economic since it improves the efficiency of labour,


increases its availability where it is scarce or help to secure better
class of workers by keeping them contended, it minimizes the
chance of any industrial disharmony and establishes industrial
peace.

➢ It develops a sense of responsibility and dignity among the workers


and then makes them noble and civilized citizens.

➢ It also keeps the efficiency and morale of workers high which


creates a sense of honesty and integrity among workers.

➢ Subsequent effect of all the above aims establishes a good labour


management relation, which is essential for the smooth functioning
of the industry.

➢ It also encourages worker’s participation in management through


suggestions received from the workers.
WELFARE SCHEMES

STATUTORY NON STATUTORY MOTIVATIONAL OTHERS

Loan &
NFL Social Security Incentive for Advances
Provident Scheme promoting small
Fund family norms
Township
GSLI Facilities
DLIS Group Saving Production Medical,
Death linked Linked Insurance Incentive Shopping
MOMOTI
Insurance center,
Scheme Education-
Higher Edu. al facility
Scheme for etc.
Pension Family Welfare Employees.
Scheme

Promotion Canteen
Gratuity policy

(GPAI)
Group Training
Personnel Benevolent &
Accident Scheme Development
Insurance
Scheme
STATUTORY
WELFARE
SCHEMES
PROVIDENT FUND SCHEME
Every employee of the company including trainees (except
Apprentices engaged under the Apprentices Act and Govt. servants on
loan on foreign service terms) any person employed by or through
contractors in connection with the work of the company, shall be entitled
and required to become member of the fund from the date of
appointment. The rate of contribution is equal to 12% of the salary with
matching contribution from employer side. On the accumulated amount
8.5% interest is given.

The employees are allowed refundable/non-refundable loans to meet


contingencies such as higher education for children, marriage of
children/near relatives, house construction and to meet other social
obligations etc. subject to the condition to be met as provided in P.F rules.

EMPLOYEES PENSION SCHEME 1995


All the employees who were the members of Family Pension Fund
1971 including new entrants are covered under the employees Pension
Scheme 1995 under the Employees Provident Fund and Misc. provisions
Act, 1952. (as amended in 1996) which provides pension to the members
on superannuating, retirement, disablement, family pension cover for
widow/widower, children/orphans pension in addition to widow pension,
pension to nominee in case of unmarried members or those having no
family and provision of the capital return also exist on option. The rate of
contribution towards EPS is @ 8.33 % of the pay and it is to be diverted
from employer’s share of PF. In EPS there is a ceiling of 6,500/- on
salary of all employees.

PENSION = Pensionable salary*Pensionable service /70


DEATH LINKED INSURANCE SCHEME

All employees who are the member of provident fund are covered under
this scheme. Salient features of the scheme are as under: -

1. Each employee is covered for a uniform fixed amount which at


present is Rs.1.25 lakh.
2. Upon the death of the member while in service, the sum assured is
payable to the nominee.
3. The entire premium under the scheme is borne by the employer and
the employee is not required to make any contribution towards
premium payable to LIC.
4. Payment of insurance amount is exempted from tax.

GRATUITY
With effect from 24.5.94 all employees irrespective of their salary
are covered under the Payment of Gratuity Act, 1972. As a result thereof,
Death-cum-Retirement Gratuity Scheme no more remains in operation
however, for the purpose of calculation of gratuity, employees or their
nominees are at option to choose any set of benefits, either under the
Payment of Gratuity Act, 1972or under the Death-cum-Retirement

RATE OF GRATUITY 15 days wages for every completed


PAYABLE year of service or part thereof in excess
of 6 months
By taking a month of 26days subject to
A max. of Rs.3.5 lakh.
RATE OF GRATUITY IN
CASE OF DEATH Same as above
Gratuity Scheme, which ever is more beneficial to them.
The benefits available under the Act and the scheme are as under: -

PAYMENT OF GRATUITY ACT


DEATH-CUM RETIREMENT GRATUITY SCHEME

RATE OF 1/4th of EPF. Monthly emoluments for each


GRATUITY completed 6 months of the qualifying service or
PAYABLE Part there of subject to a max. of 16.1/2 times
monthly emolument or Rs.3.5 lakh whichever is
less by taking a month of 26 days.

RATE OF Death during the 1st year of 2 months


GRATUITY IN CASE qualifying service. emolument
OF DEATH
Death after the 1st year but 6 months
before 5 yrs of qualifying emolument
service.

Death after completion of 5 12 months


yrs of qualifying service but emolument
before 20 yrs of qualifying
service.

Death after 20 yrs of service ½month


or more. emolument
NON STATUTORY
WELFARE
SCHEMES

NFL SOCIAL SECURITY SCHEME


OBJECTIVE OF THE SCHEME: -
To provide financial benefits to an employee /nominee of the deceased as
the case may be in the event of death/permanent total disablement/
retirement on medical grounds.

ELIGIBILITY: -
All regular employees including company Trainees appointed against
regular posts who died while in service or suffered permanent total
disablement or retired on medical grounds, on or after the date of
implementation of the scheme. The scheme w.e.f 11.12.1998.

BENEFITS UNDER THE SCHEME


Under this scheme the employee’s dependent family members shall be
provided lump sum benefit equivalent to Basic pay+DA (restricted to Rs
15000/-pm) for 50%of the left over service limited to 60 months pay,
whichever is less to be released in a phased manner. It is subject to tax
deduction under the Income Tax Law. Minimum amount payable is
Rs.1,00,000/-

RELEASE OF PAYMENTS
The payment under the scheme/ shall be released in a phased manner as
indicated below:

1st year 40% of admissible amount

2nd year 20% of admissible amount

3rd year 20% of admissible amount

4th year 20% of admissible amount

CONDITIONS FOR BEING BENEFICIARY UNDER THE


SCHEME
The benefits shall not be extended in the following circumstances: -

i) Employee whose spouse is in the employment.

ii) Outstanding loans/advances and other dues, if any, taken by the


Employees from the company have not been repaid/settled.
iii) Company quarter, if allotted has not been vacated.

BENEVOLENT SCHEME
This Scheme was introduced in w.e.f 1st November 1994. In terms of the
Benevolent Scheme, in the event of death of an employee of NFL under
any circumstances during service, all employees of the company
contribute an amount of Rs.25/- each from their salary and the total
amount so collected is paid to the nominee of the deceased employee.
There is however no contribution from the management side.

GROUP SAVING LINKED INSURANCE SCHEME


The Group Saving Linked Insurance Scheme (GSLI) of the LIC
has been introduced in all units/office of the company providing coverage
of insurance amount ranging from Rs.30,000 to Rs1.20 lakh in the event
of death of an employee. The scheme provides for a monthly contribution
@ 1% of the total sum insured. Out of which 35 % is appropriated
towards risk for insurance cover and 65 % is credited to Saving Portion.
The saving portion earns interest @ 11% P.A.

The contributions paid under the scheme are eligible for exemption under
the Income Tax Act. 1961. The maturity proceeds or claimed amount are
also free from Income Tax. The contributions are payable on monthly
basis through deduction from employees salary.
In the event of unfortunate death of a member covered under the scheme,
the nominee becomes entitled for the life insurance benefit as applicable
to the member’s category plus the amount accumulated with interest in
the saving fund account of the member.

In case of survival up to the normal retirement date or early withdrawal


by resignation or termination of the service, the total amount accumulated
in the savings portion with interest lying to the credit of the member in
the saving fund account becomes payable.

SPECIAL WELFARE FUND SCHEME


SCOPE: - The fund known as “NFL employee special welfare fund ’’
will cover all workers in the unionized categories.

AIMS AND OBJECTS: - The object of this fund is to undertake


welfare projects in the neighborhood of the company’s office or for
giving relief to the hard cases inside the establishment.

SUBSCRIPTION: -
The fund shall comprise of: -

Contribution of Rs.2/- per head.

Grant of Rs.1000 p.m by the management in case of each unit and


Rs.500/- p.m each in case of marketing division and head office, provided
it doesn’t exceed the matching contribution of the members.

ESTABLISHMENT OF THE COMMITTEE TO MANAGE THE


FUND: -

For the purpose of administration of the fund, a committee of 6 persons


shall be constituted in each unit and at central marketing office and head
office of the company there will be a chairman of the committee who
shall be the nominee of the management. The company shall provide the
facility for the internal audit of the fund.

OPERATION OF THE FUND: -

The fund shall be utilized in the following way: -

For providing relief to the hard cases inside the establishment e.g.
unforeseen calamities, misfortunes, prolonged illness of the employees

necessitating his/her absence on extra-ordinary leave without


pay, on medical grounds.
For undertaking the welfare projects in the neighborhood.

UTILISATION OF THE FUND BY THE COMPANY: -


The company has made road many times in Vikas Nagar which is the
near by attachment to the NFL Township Panipat.
NFL Panipat has also donated ceiling fans in Sanjay Gandhi Eye
Hospital.
NFL Panipat has also donated Fridge in Mother Teresa Charity Home etc.

INTER COMPANY DEATH BENEFIT


SCHEME-DISCONTINUED IN e.f 1.04.02
In order to provide better security & to inculcate a sense of brotherhood
amongst the employee of FCI-NFL group of companies in the event of
death of any employee due to any reason during service, contribute an
amount of Rs.1/- each from their salary & the total amount so collected is
paid to the nominee of the deceased employee. The total amount under
the scheme payable to the nominee works out to Rs.26500/-
approximately.

The above scheme was introduced as a result of wages settlement signed


with the recognized Union of FCI-NFL Group of Companies & was made
applicable w.e.f 30.10.1983

FAMILY WELFARE SCHEME


Under this scheme every employee of the unit NFL Panipat contributes
Rs.5/- each from their salary & the total amount so collected is paid to the
nominee of the deceased employee.The total amount payable to the
nominee works out to Rs.4500/- approximately.

GROUP PERSONAL ACCIDENTAL


INSURANCE
Under this scheme all the employees of NFL whether they may be
workmen, trainees, apprentices, or on deputation all are covered. In this
scheme risk cover is for 24 hours. In case of temporary disablement 1%
of capital sum insured per week is given subjected to maximum 104
weeks.

GPAI = percentage of loss*relevant factor

Slab(BP+DA) Usual cover for Death or Total Total (Rs.)


Temp. disablement disablement Fatal
Up to 7850/- 1,00,000 4,25,000 5,25,000
7851/- to 8910/- 1,30,000 4,25,000 5,55,000
8911/- to 1,60,000 4,25,000 5,85,000
10300/-
10301/- to 1,90,000 4,35,000 6,25,000
12500/-
12501/- to above 2,80,000 3,85,000 6,25,000
MOTIVATIONAL
SCHEMES

INCENTIVE SCHEME FOR PROMOTION


OF SMALL FAMILY NORMS

CASH INCENTIVE
• Rs.500/- to those who have 2 or less children and they or their
spouse undergo vasectomy / Tubectomy operation.
• Rs.250/- to those who have three children and they or their
spouse undergo this operation.

• Rs.125/- to those who have more than 3 children and they or their
spouse undergo this operation.

Reimbursement of all medical expenses incurred in connection with


sterilization operation on production of requisite certificate and money
receipts from any organized Hospital.

SPECIAL CASUAL LEAVE

a) Special casual leave not exceeding 6 working days to male employees


who undergo sterilization operation (Vasectomy). Sunday & weekly offs
falling in between the special casual leave are ignored.

b) Special casual leave not exceeding 14 working days to female who


undergo non- puerperal tubectomy operation.

SPECIAL INCREMENT

The employee who themselves or their spouse undergo sterilization


operation after having three or less serving children shall be granted a
special increment in the form of special pay not to be absorbed in future
increase in pay either in same post or on promotion to higher post. The
increment would be allowed from the first of the month following the
date of sterilization.

EMPLOYEE DEVELOPMENT SCHEME


In welfare schemes, training and development programs for
employees is also included. These programs are done to make employees
more efficient.
Incentive admissible to the employees on acquiring higher qualifications
while in service of the company:-
S Existing Eligibility criteria No. of Eligible Categories
no. qualification for increments advance
increment
s
a) TECHNICAL
1) Non Matric or Matric/Pre basic 1 Up to the scale of
Metric with Rs.5550-8910
ITI
2) Matric/Pre Basic course/ITI 1 Up to the scale of
basic Rs.5550-8910
3) Matric+ITI/ B.Sc./Diploma in 1 Up to the scale of
ISC/basic engineering/ Rs.6550-11350
course Adv. course
4) B.Sc./Diplom AMIE,AMI, 2 Up to the scale of
a in Chem. Rs.10750-16750
engineering/ Engg/AIC/Post
advance graduate diploma in
course Prod/Project Mgt.
of two years
duration Awarded
by the Statutory
Univ /Institutions

5) Engg. M.Tech/MBA/P.G. 2 Up to the scale of


Graduates DIP. in Project Mgt. Rs.10750-16750
awarded by
Statutory
Univ/ Institutions
b) NON
TECHNICAL
1) Non Matric Matric /Pre basic 1 Below the scale of
Rs.4650-6550
2) Matric/Pre Graduate/B.Com 2 Up to the scale of
basic Rs.6100-9710
/Basic/B.A
part 1 Inter
3) Graduate/ a)Master Degree s2 Up to the scale of
B.Com M.A Rs.10750-16750
(pub Add)
b)M.A(economic) 2 Up to the scale of
Rs.10750-16750
c) L.L.B 2 Up to the scale of
Rs.10750-16750
d)M.Com/Business 2 Up to the scale of
Admn.) Rs.10750-16750
e)M.Com/M.Com 2 Up to the scale of
(Acc& Business Rs.10750-16750
static/C.A/ICWA/
Company Secretary
f)M.B.A with 2 Up to the scale of
Sr.liason Rs.10750-16750
in Financial Mgmt.
4) DIPLOMA a) P.G Diploma in 1 In case of
pers. Mgt. & Ind. employee up to the
Relation 1 scale of Rs.6550-
b) P.G diploma in 11300.
Officer Org. & Non technical side
procedures. 1 adv. Increment
c) P G Diploma in would be given
material mgt. 1 only if they acquire
d) P.G Diploma any of these
in qualification which
Journalism/Diploma 1 could become
in Public Relation functional relevant
e) P.G Diploma to them as & when
in Marketing & they start working.
Sales Mgt.
5) Post graduate Ph.D 2 Up to the scale of
Rs.10750-16750
6) MBBS/BDS 1 Diploma in 2 Up to the scale of
medicine Rs.10750-16750
Surgery.
2 Masters Degree in
Medicine surgery.
OTHER
WELFARE SCHEMES

SCHOLARSHIP TO THE MERITORIOUS


CHILDREN OF NFL EMPLOYEES
The salient features of the said scheme are as under:-

Children of NFL employees studying in schools who secure the first three
position in Annual Examination out of the first five (for SC/ST, the first
three position among SC/ST student) in the classes mentioned against each
in the next class tenable for one year provided they continue their studies
in the next
Class Amount of scholarship class:
I to IV Rs.35/-
V to IX Rs.60/-
X to XI Rs.100/-

Children of employee who secure first & second position in Board /


University examination would be awarded as under:

Position Board examination University examination


X XII Graduate Postgraduate
1. Rs.3000/- Rs.3000/- Rs.4000/- Rs.4000/-
2. Rs.2500/- Rs.2500/- Rs.3000/- Rs.3000/-

WELFARE EXCURSION SCHEME


A) Two Excursion Trips in a calendar year are arranged by the Club at
Unit. However at Mktg. division & Corporate Office where there are no
clubs, such excursion trips are arranged by the concerned welfare/industrial
relations department. Under the scheme, the places to be visited during
such Excursion trips are arranged within a distance of 400 km each way
from the township/place of work. One night stay is also allowed for the
said trip. However company does not bear any extra expenses on account
of fooding or lodging. The employees make their own arrangement for
night stay and avail their own leave.

B) Management provide hire charges for two buses trip at Unit & total
three buses for two trips at C.O & CMO.
C) A sum of Rs.25/- per member per year is also given to the respective
clubs & where there are no clubs the amount @ Rs25/- per employee
availing the facility is placed at such trips. All other expenses on such
trips are however met through the contribution of employees availing this
facility.

LONG SERVICE AWARD SCHEME


In terms of company’s policy regarding grant of long service award,
employees are given an award on completing specified length of service
of 10/15/20/25/30 & 35
year as per details given below:

Sr. no. No. of year of service in Co. Amount of award

1) On completion of 10 years Rs.900/-


2) On completion of 15 years Rs.1150/-
3) On completion of 20 years Rs1250/-
4) On completion of 25 years Rs.1500/-
5) On completion of 30 years Rs.1800/-
6) On completion of 35 years Rs.2200/-

The above amount is credited to the Optional Provident Fund Amount


of the concerned individual.

BLOOD DONATION CAMPS


NFL time to time organizes Blood Donation Camps & Free Medical
Camp to help the society. In the Free Medical Camp NFL provides
transport facilities to the patient from nearby villages. Consultation,
clinical test & medicines are also provided free of cost.
NFL also organizes Baisakhi Mela & Diwali Mela for the welfare of the
society. From the income of mela, it helps the needy & poor.

WELFARE AND SPORTS FACILITIES


Following grant/facilities are provided:-
Sports Grant-
Under this head, budget allocations are made for the following:-

1) Annual Sport/Welfare grant.


2) Grants for holding inter – unit Tournaments.
3) Sponsored Tournament.

Given below are break up of grants for sport activities:-

Unit Annual Grant Budget For Inter Sponsored TA/DA


For Sports Unit Tournament Tournament
Major Minor
Games Games

Nangal 80,000/- __ __ 25,000/- 30,000/-

Vijaypur 60,000/- __ __ 25,000/- 60,000/-

Bhatinda 60,000/- __ __ 25,000/- 30,000/-


/Panipat

CO/CMO 30,000/- __ __ Actual be complied by


Taking into account no.
All units 35,000/- 15,000/- of games, no. of players
/Offices deputed etc.

SELF INSURANCE OF OUTSTANDING


HOUSE BUILDING ADVANCE
A self insurance scheme for the purpose of providing insurance cover for
outstanding HBA & interest due thereon is in vague in the company within
the following parameters:-

a)Employee who have taken HBA from the company contribute Rs.2/- per
one thousand per annum w.e.f 1.4.2000 on the amount of HBA outstanding
and interest due thereon in her/his name as on 1 April of each financial
year, which is recoverable in 12 equal monthly installments from the
salary of employee.
b) The fund so generated is utilized to meet the liability of deceased
employee towards repayment of HBA & interest accrued thereon.

c)For matching contribution on behalf of company necessary accounting


adjustment are carried out at Corporate Office at the time of death of an
employee with regard to the outstanding amount of HBA along with
interest thereon by debiting Company’s share to the respective unit
office.
d) The fund is managed by a governing body comprising of
representative there of Management Officer’s Association & recognized
unions.
e) The said scheme was introduced in the company w.e.f.1/4/1992

Relief Measure/Benefits admissible in case of


Death/Total Disablement & Retirement on
Superannuation , Premature Retirement

Benefit under On On premature On natural On death/total


the scheme superannuation Retirement death while in Disablement due
service to accident
Provident Full employees Full employees Full employees Full employees
Fund & employer’s & employer’s & employer’s & employer’s
contribution contribution contribution contribution
Gratuity As per Act Same as on Same as on Same as on
Superannuation Superannuation Superannuation
Cum retirement Or death gratuity Or death gratuity
Scheme which Scheme which
ever is more ever is more
Pension As per the As per the As per the As per the
provision of EPS provision of provision of provision of
1995 EPS 1995 EPS 1995 EPS 1995
Group personal Nil Nil Nil As per group
acc. insurance Personal acc.
Insurance scheme
Group insurance Nil Nil One time benefit Same as in the
scheme of LIC in Payable to the case of natural
lieu of DLIS nominee death
Inter Cos. Nil Nil Amount Same as in the
Death benefit Equivalent to total case of natural
scheme no. of employees death
in FCI-NFL group
Of cos. @ Rs.1
Payable to the
nominee
Benevolent Nil Nil An amount Same as in the
scheme of equivalent to case of natural
NFL Contribution @ death
Rs.5/- per
employee of NFL
Group saving 65% of the total Same as in the The sum insured Same as on
linked insurance contribution of case of + 65% of natural death
scheme the employees + superannuation employees
interest contribution
Self insurance Nil Nil The liability of Same as on
Of outstanding deceased natural death
amount of employee toward
HBA HBA taken from
the co. & interest
thereon is met out
of the
accumulation in
the self ins. fund
EL/HPL Subject to the Same as on Same as on Same as on
encashment Condition that superannuation superannuation superannuation
encashment of
EL & HPL
together shall not
pay full of
Which HPL
component would
not exceed 120
day
Full pay
Traveling For self & Same as on Concession Same as on
allowance family as per superannuation available natural death
T.A rules for To family
Home town members
As per T.A rules
for home town
Medical Self & spouse Nil To the extent Same as on
facility To the extent available in natural death
Available in Co’s comp. hospital
hospital on for the dependent
payment of family members
Prescribed of the deceased
subscription employee during
the period of
Retention of
comp.
Accommodation
by such
dependents
Subject to a max.
of Six month
from the date of
death.

RELEIF MEASURE TO THE FAMILIES OF THE


DECEASED EMPLOYEE IN CASE OF DEATH/
PERMANENT TOTAL DISABLEMENT WHILE IN
SERVICE
a) In the event of death of an employee at any place other than at the
plant while on duty, the company will arrange for the transportation of
the body.

b) An amount of Rs.2500/- shall be payable to the family of the deceased


employee as Funeral Expenses

c) All dues will be paid nearly within 15 days from the date of death of
the employee.

TOWNSHIP
At Panipat unit, there is a modern township, which spreads over an area
of 100 acres. There are 900 dwellings in the township, which
accommodate officers, workers. Company also gives liberal house
building advance at nominal interest to the employees to construct their
own houses.
HOSPITAL
Company has provided a 30-bed hospital in the heart of the township.
Hospital is equipped with necessary facilities like, X-Ray, clinical
laboratory, operation theater, ECG, respiratory equipment etc. The first
aid center is located within the factory premises with an ambulance kept
in readiness. Medical facility is extended to all the employees and their
dependents. If required, patients are sent to the approved outside hospitals
and nursing homes for specialist treatment.

MEDICAL FACILITY
IN FAMILY FOLLOWING ARE INCLUDED: -

Family mean’s Husband or Wife as the case may be parents,


children’s step children &children taken as wards, subject to the
following conditions: -

Son: - till he starts earning or attains the age of 25 years.

Daughter: - till she starts earning or gets married, whichever is earlier.

The income limit of Rs. 1500 p.m for dependents would be


inclusive of income from all sources including pension and pension
equivalent of DCRG benefits and exclusive of the relief on pension
sanctioned after Dec 1995.

There are following medical facilities are provided: -

➢ INDOOR TREATMENT FACILITY.

➢ OUTDOOR TREATMENT FACILITY.

INDOOR TREATMENT FACILITY: -

Reimbursement towards Indoor Treatment will be restricted as under:

• For self, spouse and dependent children – 100%


• For parents - 80%
OUT DOOR TREATMENT FACILITY: -

Maximum ceiling limit for a financial year on OPD Treatment: -


1.5-month salary.
Reimbursement procedure: -

• 100% reimbursement will be made up to one-month salary.

• 50% reimbursement will be allowed in case the expenditure on


account of OPD treatment exceeds one-month salary and is up to 2-
month salary.

• No reimbursement will be allowed towards OPD treatment in case


the amount exceeds 2-month salary.

PERIODICAL HEALTH CHECK UP


The appointment to any regular post in the company is subjected to
medical fitness. All employees working in the unit are required to
undergo medical checkup annually from the company’s hospital.

CANTEEN
Management provides canteen facility to its employees in the factory.
Eatables are supplied to them at the place of work at regular intervals.
Hygienic conditions are also maintained in all the canteen services.

The canteen is very neat and clean. It is being cleaned regularly 2


times a day and also washed with detergent once in a week. In canteen
proper ventilation and light is provided. Canteen has a sitting capacity of
80 persons at a time. Ten fans, five desert coolers and one water cooler
are provided for hot summers. Telephone facility is also given. There is a
notice board and complaint book is also available.

Canteen runs on contract basis for which tenders are invited. A security
of Rs.95000/- is to be deposited in the starting.
NFL canteen

RECREATION CENTERS
Company has provided recreation centers for employees and officers
these are:
➢ FERTILIZERS CLUB

➢ MANORANJAN KENDRA

These two recreation centers are situated with in the township. Various
activities & competitions are organized at these places. These are very
useful for the overall development of the employees. By participating in
various kinds of activities the employees feel refreshed and energetic.
There are two playgrounds also for all out door games.

LOAN AND ADVANCES


All the regular and confirmed employees of the company are eligible for
taking following loans and advances: -
➢ Payment of salary advance

➢ Advance for purchase of conveyance

➢ Advance for initial setting up of household

➢ House building advance loan etc.

COMMUNITY HALL
Company has a community hall in township for conferences, meetings,
marriages and other parties. 700 persons can gather there at a time. In
community hall there is a stage which has a very good sitting capacity.
Management organizes various activities & programmes in this hall.
Various cultural programmes of school are also organized in this hall.

EDUCATION FACILITY
Company has provided a school KENDRIYA VIDYALAYA which is up
to 12th standard. The studies in the school are really very good. In this
school ward of both workmen and officer study together.

SHOPPING CENTRE
Shopping center is also located in the township. There are many shops in
the shopping center. All things of daily use are available at shopping
center. Good quality product are provided here at reasonable rates. As
township is situated 4 km away from the city, services of shopping center
pay much. It is a useful concept for employee welfare

POST OFFICE
One Post office is also situated in the township. One need not to go to city
for letters,parcels or money orders.
ATM service is also available in the township. Now it’s very easy for the
employees to withdraw money at any time.
EVALUATION
Of
SCHEMES

IMPORTANT BENEFITS OF WELFARE


SCHEMES
An employee devotes his one fourth of life in the work place. Therefore
it is the social and moral duty of the employer to provide him proper
atmosphere and facilities. These facilities gives economic benefits too
because these efforts increase productivity and moral of the employees.
After studying all welfare schemes of NFL Panipat, here is summary of
benefit of these schemes: -

HIGHER PRODUCTIVITY
The employees in NFL Panipat are highly productive. The employees are
highly productive because they are satisfied with the welfare benefits.
The company is wining the trust of employees by providing welfare
measures. As a result the employees feel that company is doing its duty,
now it’s there duty to work efficiently and by doing this there efficiency
will increase.

INDUSTRIAL PEACE
There is a high degree of industrial peace in the unit. By adopting various
welfare measures by the company there is job satisfaction among
employees that increases peace in industry and no dispute arises.

MINIMUM LABOUR TURNOVER

Due to welfare activities in the factory and in the township the


employees are satisfied. Working conditions in the factory are also very
good. Various committees are there in the factory for listening to the
employee’s problem. If the problem is serious proper action is taken
immediately as a result the employees feel satisfied and the tendency of
labour turnover is reduced.

LOWER ABSENTEEISM

Good working condition reduces the absenteeism. The working


conditions in the unit are really very good & all the facilities are
provided to the employees as a result they are totally satisfied which
lowers the absenteeism.

SATIESFIED WORK FORCE

If welfare measures are proper the workers feel satisfied. In Panipat unit
there is proper participation by the workers in management decisions. As
a result the employees feel themselves as an important part of the
management and this creates a feeling of satisfaction among employees.

OTHER BENEFITS ARE AS FOLLOWS: -


• Welfare facilities provide better physical and mental health to the
workers and make them happy.

• Such service facilities like housing scheme, medical benefits,


Education and recreation facilities for the workers, families help
create contented workers families.

• Employers get stable labor force due to the provision of welfare


facilities; workers take active interest in their jobs and work with a
feeling of involvement and satisfaction. They also find their work
interesting.

• Employee welfare measures raise lobour productivity and bring


Industrial peace and cordial labour- management relations.

• An employer is able to attract talented workers from the lobour


market by providing attractive welfare facilities.

The social evils prevalent in the lobour force such as gambling,


drinking, etc are reduced. Welfare activities by the employer bring
improvement in the health of the workers and keep the cheerful.

AREA OF PRACTICAL EXPERIENCE


• Study and observation of personnel department.
• Study about recruitment and selection procedure.
• Study about reservation policy.
• Observation and Maintaining canteen.
• Study and observation of PR (Public Relation) Department.
• Maintaining leave records
• Study about Administrative department function.
• Study and maintaining employee’s record.
• Pay fixation.
• Pension calculation.
• Study and observation of service record maintained.
• Study of the function and working of time office.
• Learning about working of PF. Section.
• Study about disciplinary actions.
• Observation procedure regarding promotion, transfer etc.
• Learning about HRD training procedure.
• Study about function of Vigilance.
• Study and observation about labour laws.
• Study about Welfare scheme.

OBSERVATIONS

1. PERSONNEL &ADMINISTRATION Dept. executives and all


staff maintain an attitude of cooperation and assistance.
2. Mobile camera is not allowed inside the company but with few
exceptions.
3. Maintaining safety provisions and safety level to the highest
standard.
SWOT
ANALYSIS

SWOT ANALYSIS

STRENGTHS: The main strength of NFL Panipat is their employees.


The total no. of employees is 900 approximately.

• Right people at right place

• Good working conditions

• Social security

• Financially sound company


WEAKNESSES:

• Willing people are overloaded

• Staff’s much more involvement in work

• Industrial pollution

OPPURTUNITIES:

• Growth in fertilizer consumption in eastern market of the


company.
• Marketing of agricultural input services under one roof.

• Marketing /production of seed pesticides.

• Marketing of the engineering services and association in joint


ventures in India /abroad

THREATS:
• Declining trends in consumption of nitrogenous fertilizers in
predominant market areas.
• Increase in competition.
CONCLUSION

CONCLUSION

From the findings and analysis it was seen that most of the employees are
having the opinion that welfare schemes means job satisfaction, security
and development.

Research has shown that most of the employees are satisfied with the
welfare schemes facilitated by the company N.F.L and they are getting all
the facilities in time and also according to their needs, which ultimately
and automatically help company &employees to achieve common goal.

Thus management should take care of their workers by providing them


different schemes so that they feel contented.
CASE STUDY
CASE STUDY

This case study is about the welfare schemes prevalent in NATIONAL


FERTILIZERS LTD. It is an NFL employees’s case and here we will
calculate the total benefits provided to the family of deceased.

CASE

An NFL employee named SUBHASH CHAND joined N.F.L on 17.08.78


as a sr. clerk. He worked sincerely for 28 yrs &10 months.
He expired on 05.07.07. At that time he was enjoying the post of
SENIOR MANAGER (Finance & Administration) having basic pay of
Rs.19,200 + D.A 13851@71.1%.
His due date of retirement was 31.12.2014 but in between he died due to
severe illness .His wife namely Mrs. Santosh was the nominee .He also
had three children named Shikha, Parul, & Nitin.

We have to calculate the total fund received by the bereaved family.


It includes:

1. provident Fund
2. pension
3. Gratuity
4. EDLI
5. GPAI
6. Social security
7. Family welfare scheme
8. Benevolent scheme
9. GSLI
10.Leave Encashment
SOLUTION
( I ) PROVIDENT FUND

EPS A/C CONTRIBUTED ORIGINAL CO.CONTRIBUTION PERSONAL


NO. P.F P.F LOAN

82/6059 4,87,588/- 41,900/- 7,57,983/- 2,81,000/-


SUBHASH
CHAND
Net bal. 10,06,471 (with interest @8.5%)

( II ) PENSION
As per guidelines monthly child pension for each child should be equal to
25%of the amount admissible to the widow provided that the monthly
child pension is for two children.
(ceiling for calculating pension is Rs.6500/-)

Widow pension ( Mrs. santosh) = 2051/-


Children pension
1). Kmr. shikha = 501/-
2). Kmr. Parul =501/-

( III ) GRATUITY

Total service = 28 yrs 10 months 8 days


Last pay drawn = 32851 /-

Gratuity =( B P + D.A ) * 15/26 * no. of years of service

Therefore
Gratuity = 32851.20 *15 * 29/26
=Rs.5,49,625.84
(IV) EDLI

Acc. to DLIS Act, 1976 approximately sum of Rs.1.25 lkh is given to the
nominee of deceased.

(V)GPAI

This is not applicable in the case of Sh. Subhash Chand, because it is only
provided in case of accidental death.

(VI)Social security scheme

Although his salary was 32851/-but acc. to this scheme restricted amount
is 15000/-
Left over service = 6 yrs 6 months 26 days
so total left over service =78 months
50% left over service =78*50/100 = 39 months
Total amount = 15000*39 = 5,85,000/-
But total amount under social security is given in four instalments i.e.
40:20:20:20

INSTALMENTS GIVEN AMT. PERIOD

5,85,000*40/100 Just after


Ist =2,34000 /- death

5,85,000*20/100 After 1 yr
IInd =1,17,000 /-

5,85,000*20/100 After 2 yrs


IIIrd =1,17,000 /-

5,85,000*20/100 After 3 yrs


IVth =1,17,000 /-

( VII ) Family welfare scheme


Total no. of employees =900
Each employees contribution =Rs.5 /-
Total amount =900* 5 = 4500/-

( VIII ) Benevolent Fund

Total strength of company = 4890


Each employees contribution =Rs.25/-
Total amount = 4890 * 25 =1,22,250/-

(IX) GSLI

Subhash Chand’s contribution =120/- p.m


Total Service =28 years & 10 months
Amount accumulated =41520/-
Interest @ 11% = 29686.8
65% of the amount accumulated= 26988
Basic amount= 120000
Total GSLI= 29686.8+26988+120000= 176674.8/-

(X) Leave Encashment

Total leave =240 days


Basic pay +D.A =32851
Leave encashment =240*32851/26
L.E = 303240/-

(XI)Funeral charges = 2500/-

Total amount given to the nominee of the


deceased= 28,75,261.6/- + Pension of 3053/-
p.m
BIBLIOGRAPHY

BIBLIOGRAPHY
➢ Factories Act, 1948

➢ Labour welfare, social security and industrial peace in India by


Mamoria & Mamoria.

➢ Vani (National Fertilizer Ltd. , corporate office, New Delhi

➢ Human resource Management by CB.Gupta.

➢ National fertilizers.com

➢ Matter and references from NFL library.

➢ Alta vista goggle and other search engines


THANK YOU

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