HR POLICIES IN Hindustan Copper Limited/Indian Copper Complex

A Summer Internship report Presented to the Faculty of the MBA Program New Delhi Institute of Management

In (Partial) Fulfilment of the Requirements for the Degree Post Graduate Diploma in Management (2010-2012)

By Maharani Monika Kumari Roll No: 141

50 (B & ) , 60, Tughlakabad Institutional Area , New Delhi-110062, e-mail :info@ndimdelhi.org. website : https://www.ndimdelhi.org

pg. 1

Summer Internship Report

HR POLICIES AT

HINDUSTAN COPPER LIMITED (A Government of India Enterprise) at Indian Copper Complex (ICC) at Ghatsila, Jharkhand

SUBMITTED BY

Monika Kumari (Roll no.-141)

New Delhi Institute of Management PGDM (2010-2012)

INTERNAL MENTOR Mr. B.K.Dhup (HR Faculty,NDIM)

INDUSTRY MENTOR Mr. M.R.Barik (Sr.Manager HR,HCL/ICC)

REGISTERED OFFICE Tamra Bhavan 1 Ashutosh Chowdhury Avenue Kolkata-700 019, India Tel No. 91 33 22832224, 91 33 22832226 Fax No. : 91 33 22832478, 91 33 22832640 Website : www.hindustancopper.com

PLANT ADDRESS Indian Copper Complex P.O. Ghatsila Dist. Singhbhum(E) Jharkhand Phone (06585) 225-768/492/873/869 400 Fax (06585) 225-806

pg. 2

DECLARATION
I , Monika Kumari, a student of New Delhi of Institute of Management (2010-2011) declare that every of the Project Report of (HR Policies in Hindustan Copper Ltd./ Indian Copper Complex) that I have submitted is original.

I was in regular touch with the nominated guide and contacted him for discussing the project.

Date of project submission: _______________________

Signature of the student: _________________________

Faculty Comments: _____________________________

Signature of faculty guide:_________________________

pg. 3

ACKNOWLEDGEMENT
I am deeply indebted to Mr.M.R.Barik ,Manager (HR-Executive cell) and Mr. B.K. Dhup (Internal Mentor) for the precious time he devoted to the project and also the trust he showed in me. This project report would not have been prepared so well without his help and support and also the providing me with the relevant material and information. I am specially thankful to Mr. R.Prasad (HR-Works ) for his Guidance and continuous

support. I am indebted to Mr.Y.V.Chndrashekhar (HR-Admin) for giving his invaluable time and learning about the subject in making my project and grateful to Mr.A.S.Verma (Sr. Executive HR) and Mr.H.Singh (HR-Works) for their kind co-operation and sharing their extensive knowledge and experience. Thanks to the staff members of Personnel Department for their time and support which helped me to study such an extensive subject. I am also thankful to my fellow summer trainees who helped me throughout the project and their suggestion becomes of my great importance. I am really thankful to my family and specially my mother-in-law who encouraged me and acted as pillars of strength. Without whose blessings this project could not have been completed in time.

Place: Dated:

Signature:

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CONTENTS
Study Declaration..i Certificate of Originalityii Acknowledgementiii Student Profile..iv

1. INTRODUCTION 13
A. Objective of the study B. Scope C. Methodology 1. Company Profile ....18 I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. An Introduction to HCL Plant locations Growth since inception Productivity n Profitability The Management Organizational Structure Employee engagement Trade Union Strategy Research and Development/technology absorption Quality Assurance Mile stone achieved

pg. 5

XIII. XIV. XV. XVI.

Financial Analysis Annual Report Peer Companies Social Responsibility (HCl/ICC)

1.1. ICC Ghatshila ,Jharkhand ....48 1.2. The Product-Copper...50 I. II. III. IV. V. VI. VII. Strategic Role of Copper Copper Consumption Stages of Copper Production Saleable Products Copper by-Product recovery Global Copper market Indian Copper Market

2. HR POLICIES IN HCL/ICC..63
2.1. Introduction....64 2.2. Recruitment and Selection policy65 2.3. Recruitment And Establishment I. II. III. a. Notification Employment Category Source of Recruitment External And Internal

b. Advertisement c. Management Institute Recommendation

d. Deputation personnel

pg. 6

2.4. Selection Procedure67 I. II. III. IV. V. VI. VII. Job Analysis Initial Screening Test Interview Medical Fitness Offer Letter Verification

2.5. Probation Policy..69 2.6. Training and development policy...70 I. II. a. Induction Conduct needs Assessment Organizational analyses

b. Task analysis c. III. a. Person analysis Training Methods Implemented Lecture

b. Simulations IV. Training Evaluation 2.7. Health and Safety policy...73 I. II. III. IV. V. Internet use policy Smoking policy Visitor policy Corporate security policy Alcohol and drug policy 2.8. Working time Policy.78

pg. 7

I. II. III. IV. V. VI. VII. VIII.

Shift Timing Weekly hours Daily hours Intervals for rest Spread over Prohibition of overlapping shifts Register of workers Notice of periods of work Night shifts

2.9. Conduct and Disciplines policy..80 I. II. III. IV. V. Conduct Codes of conducts Misconduct Disciplinary procedure Disciplinary authority 2.10. I. II. Compensation and Benefits policy ...90

Allowance Holidays And Leaves

III. Leave Encashment IV. Expense Policy V. Concessions 2.11. Promotions and Incentives policy106

I. Incentive Schemes II. Performance Appraisal System III. Promotion Policy IV. Annual Assessment

pg. 8

V. VI. VII.

SLAS Inter-Unit award scheme Other Benefits Payment and Deductions policy.118

2.12. I. II.

Pay scale Social Security Schemes

III. Retirement Policy 119 a. Provident fund

b. Gratuity c. Half-pay leave

d. Voluntary retirement benefits IV. Death benefits 2.13. Employee Relation Policy .125

I. Communication policy II. III. Conflicts of interest policy Conflict resolution

IV. Grievance Redressal

3. SWOT ANALYSIS .44 4. COMPARISON AND ANALYSIS OF POLICIES FOLLOWED BY HCL/ICC ..135 5. SUGGESTION AND CONCLUSION ..137 6. MY EXPERIENCE AND LEARNING...139
7. EMPLOYEE SATISFACTION QUESTIONNAIRE AND RESULT. Annexture

(142)

pg. 9

STUDENTS PROFILE
NAME : MONIKA KUMARI

ROLL NO.

: 141

NAME OF THE INSTITUTION

: New Delhi Institute of Management

STREAM

: Human Resource management

NAME OF THE ORGANIZATION : Hindustan Copper Ltd./ Indian Copper Complex

PROJECT TITLE

: HR Policy in HCL/Indian Copper Complex

TRAINING DURATION

: 60 Days (2nd of May to 30th of June)

EXTERNAL GUIDE

: Mr.M.R.Barik(Sr. manager HR,HCL/ICC)

INTERNAL GUIDE

:Mr.B.K.Bhup (HR Faculty ,NDIM)

pg. 10

A creative man is motivated by the desire to achieve, not by the desire to beat others. Whatever their future, at the dawn of their lives, men seeks a noble vision of mans nature and of lifes potential.

- Ayn Rand

pg. 11

SUMMER INTERNSHIP

INTRODUCTION A. Objective of The Study B. Scope C. Methodology

pg. 12

INTRODUCTION
Summer Internship forms a part of the curriculum of the PGDM, At NDIM , New Delhi . It gives us an insight into the working of real corporate world. It equips us with the practical knowledge of the working of the organization and various aspects of the organization during short time like culture followed by functional aspect. The main objective of the summer internship is to experience the various concepts that have been learnt during the first year of management course as learning the concepts is very different from experiencing them at a concrete level. We also learn that in a given particular situation all the functional aspects are interrelated. One functional aspects cannot be isolated from the organization. Here we learn to be more confident by judging the various situation base on our reasoning and by the application of our knowledge in these situations and while doing summer internship, it is expected that we should not hesitate in doing some basic clerical job so that we get in touch with the organizational realities.

pg. 13

OBJECTIVE OF THE STUDY

The objective of the summer internship is: I. To learn about an industry and to build a relationship with a prospective employer as well as gives us a chance to simply hone our skills. II. To equips us with experience and learning about how we can apply our classroom knowledge in reality. As learning the concept is very different from experiencing them at a concrete level. III. To know about the various situations by establishing relationship between real and significant factors in a situation. IV. In addition to learning valuable new skills and getting the practical experience that employers want to see on our resume, you are also given an opportunity to explore our field of interest before officially entering it.

pg. 14

SUB-OBJECTIVE:
I. II. To Study the structure and function of HR policy in HCL/ICC,Ghatshila. To compare the HR policy of HCL/ICC with other companies of similar profile. III. To find out the key techniques that makes The HR Policy effective and valuable in HCL/ICC and in other organizations.

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SCOPE

The Scope of the study is:

I.

It can be extremely beneficial to students pursuing PGDM looking for hands-on expertise.

II.

It is a great way to jump starts a career, especially for career switchers. It is often referred to as the weeks of interview and has the potential of leading to a full time job in the future.

III.

IV.

As an intern, we can develop knowledge, competencies, and experience related directly to our career goal.

pg. 16

METHODOLOGY
The methodology of the study has been summarized in to the following two steps: a) Selection of the Topic: The topic HR Policy was chosen after considering its wide scope importance in the organization and cyber era. b) Research Design

It includes A. Collection of Data from various. 1. Primary Data-data collected through questionnaire was mailed to few companies to know their HR Policy. 2. Secondary source of data-official records, registers, websites of HCL/ICC. 3. HCL journals & Magazines. 4. The data of existing HR policies

B. Data Analysis Analysis of the Datas made through the response of different department of HCL/ICC(Ghatshila).

pg. 17

COMPANY PROFILE

An Introduction to HCL

Our Core is Ore

pg. 18

An Introduction to HCL

Hindustan Copper Limited (HCL), a public sector undertaking under the administrative control of the Ministry of Mines, was incorporated on 9th November 1967. It has the distinction of being the nations only vertically integrated copper producing company as it manufactures copper right from the stage of mining to beneficiation, smelting, refining and casting of refined copper metal into downstream saleable products. Its a Low cost, Efficient and Environmentally Friendly Mining Company.

Hindustan Copper Ltd is the only company which has rights to mine copper ore. The company converts copper ore to cathodes, which is further upgraded to bars and rods.

This is the only operating copper ore producing mining company in India. This is also the only vertically integrated producer of primary refined copper in India (Source: Annual Report (2009-10), Ministry of Mines (MoM), Government of India (GoI). Its principal activities include mining of copper ore, concentration of copper ore into copper concentrate through a beneficiation process and also smelting, refining and extruding of the copper concentrate into refined copper in downstream saleable products.

pg. 19

Other than selling refined copper products principally in the form of continuous cast wire rods, wire bars and copper cathodes, company also sell surplus copper concentrate.

The Company markets copper cathodes, copper wire bar, continuous cast copper rod and by-products, such as anode slime (containing gold, silver, etc.), copper sulphate and sulphuric acid. More than 90% of the sales revenue is from cathode and continuous cast copper rods. In concluded financial year 2006-07, as per provisional estimates, the Company has earned a all-time highest net profit of Rs. 331 crore (~USD 75 million ) against a sales turnover of Rs. 1800 crore (~ USD 420 million).

pg. 20

VISION AND MISSION Vision

Vision of the company is to maximize shareholder value through

sustainable mining and value added products.

Mission
I. II. More than three times increase in ore production in a decade. Continuous improvement in productivity and energy efficiency to bring it at par with the best internationally. III. Acquiring and developing new resources of copper domestically and internationally. IV. To rigidly follow framework for sustainable development of mine and ensure corporate social responsibility. V. To be one of the most profitable Nav Ratna* Companies.

*NOTE:- There are total 5 Maharatna,19 Nav Ratna companies , and 63 Mini Ratna companies.

pg. 21

PLANT LOCACTIONS

HCLs mines and plants are spread across four operating Units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand and Maharashtra as named below:

I. II. III. IV.

Khetri Copper Complex (KCC) at Khetrinagar, Rajasthan Indian Copper Complex (ICC) at Ghatsila, Jharkhand Malanjkhand Copper Project (MCP) at Malanjkhand, Madhya Pradesh Taloja Copper Project (TCP) at Taloja, Maharashtra

The largest resources of copper ore are located in the state of Rajasthan with 668.5 million tonnes (47.9%) followed by Madhya Pradesh with 404.3 million tonnes (29%) and Jharkhand with 226 million tonnes (16.2%).Copper resources in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra,

Meghalaya, Orissa, Sikkim,Tamil Nadu, Uttarakhand and West Bengal accounted for about 7% of the total of all Indian estimated resources.

pg. 22

GROWTH SINCE INCEPTION

A look at the change in the company since inception: November 1967 March 1972 Incorporated to take over from National Mineral Development Corporation Ltd. M/S Indian Copper Corporation Limited, Private Ghatsila, Sector Company, located at

Jharkhand

with Smelter and

Refinery was Nationalized and made part of HCL February 1975 Fully integrated Copper complex mining to refining from

came on stream at

Khetri ( capacity 31,000 tonnes of refined copper) November 1982 The largest hard rock open pit mine in the country came in into Madhya stream Pradesh at of

Malanjkhand

capacity 2 million tonnes ore. December 1989 Continuous Cast Wire Rod plant of South Wire Technology of capacity 60,000 MT was commissioned at Taloja in

Maharashtra. 1992 Modernization of concentrator plant at KCC : Installation of larger capacity flotation cells and online stream analyzer has been completed. 1997 Hindustan Copper Ltd. and the Ministry of pg. 23

Mines have signed a memorandum of understanding (MoU) for 1997-98. 1998 Expansion of Khetri Smelter and Refinery : Company is proposing expansion of Khetri Smelter and Refinery capacity from present 31000 to 100000 TPA partly based on imported concentrate. Government

approval has already been received for stage-I clearance.

Industry Structure and development

Till 1997, State owned Hindustan Copper Limited (HCL) was the only Company producing primary refined copper in the country meeting about 25-30% of the countries refined copper requirement, the balance being imported. Presently, four major players with total installed production capacity of around ten lakh tonnes of refined copper dominate the Indian copper industry. However, HCL with production capacity of 49,500 tonnes per annum continues to be the only vertically integrated primary copper producer having its own captive mines. The captive mines used to meet about 60% of Companies requirement for concentrate, the rest being imported. The two private sector companies, viz. M/s.Hindalco Industries Ltd. (Unit: Birla Copper) and M/s.Sterlite Industries (I) Ltd., with production capacities of 5,00,000 tonnes and 4,00,000 tonnes per annum pg. 24

respectively, have set up shore-based smelters relying on imported concentrate. The fourth player, M/sJhagadia Copper Ltd. With plant capacity of 50,000 tonnes per annum produces refined copper through the secondary route (using copper scrap). While the private Companies have the benefits of high scale of operation along with location advantage ,HCL has a competitive advantage by virtue of ownership of mines .There has been a paradigm shift in the Indian copper industry where India has now become a net exporter of copper from the earlier position.

Industrial Relations
Industrial Relations in the Company remained peaceful and harmonious. Various bi-partite foray with representatives of the Management and the Unions at the Apex, Unit and Shop floor levels functioned well. An MoU was reached with the recognized Trade Unions after protracted discussions on Workmens Wage Revision effective from 01/11/2007 which has since been implemented. The Company also implemented Executive Pay Revision with effect from 01/01/2007 as per Government guidelines.

Product and Profitability

HCL is the only operating copper ore producing mining company in India. This is also the only vertically integrated producer of primary refined copper in India (Source: Annual Report (2009-10), Ministry of Mines(MoM), Government of India (GoI). India has a large imbalance between its copper smelting/refining pg. 25

capacity and its copper ore mining capacity. The refined copper production capacity in India for fiscal 2010 was more than 1 million tonnes of copper, requiring approximately 100 million tonnes of copper ore (assuming a copper content of 1%). The copper ore production in India for fiscal 2010 was approximately 3.21 million tonnes. As HCL the only operating copper ore producing mining company in India and have access to over two-thirds of Indias copper ore reserves, this presents an attractive growth opportunity for us.

Principal activities include mining of copper ore, concentration of copper ore into copper concentrate through a beneficiation process and also smelting, refining and extruding of the copper concentrate into refined copper in downstream saleable products. Other than selling refined copper products principally in the form of continuous cast wire rods, wire bars and copper cathodes, we also sell surplus copper concentrate. In addition ,It sell by-products generated through the copper manufacturing process including anode slime containing gold and silver and sulphuric acid. The majority of HCLs sales of refined copper products and copper concentrate are made to customers in the domestic market in India. For fiscal 2010, we generated approximately 75% of its revenue from sales of refined copper in the domestic market and 22% of its revenue from sales of copper concentrate in the domestic market. Refined copper products prices in India are benchmarked to the LME copper price.

pg. 26

Set forth below is a chart of our Companys key production and sales volumes for each of the last three fiscal years and the three month period ended June 30, 2010.

For fiscal 2010, and the three month period ended June 30, 2010, sales of refined copper products accounted for approximately 75% and 58% of our revenue, respectively, whereas sale of copper concentrate accounted for approximately 22% and 33% of our revenue, respectively. For fiscal 2010, and the three month period ended June 30, 2010, we had consolidated total revenues of Rs.13,807.0 million and Rs.2,469.1 million, profit before tax of Rs.2,158.4 million and Rs.439.5 million and profit after tax of Rs.1,546.8 million and Rs.262.0 million, respectively.

During the year 2009-10, the Company earned foreign exchange of Rs 36.10 crore through exports of anode slime, as against Rs 75.22 crore earned in 2008-09.

pg. 27

Improve production and productivity through participation of employees Quality Circle One of the Quality Circles of the Company, viz., Pragati of ICC was rated Excellent based upon their Case Study presentation at the National Convention of Quality Circles-2009 at Bengaluru (18-21 December, 2009). There is sustained focus on furthering the Quality Circle movement in the Company to improve production and productivity through participation of employees.

pg. 28

The Management

Subject

to

the

provisions

of

the

Companies Act, 1956 & the directives/Instructions issued by the Government from time to time and the provisions contained in the Memorandum & Articles of Association of the Company, the business of the Company is being managed by the Board of Directors of the Company, who issues guide lines & formulate policies for smooth functioning of the business. All the powers are vested with and exercised by the Board excepting those which are specifically to be exercised by the share holders of the Company in General Body meetings. However, for day-to-day operations, the C M D / Functional Directors are delegated with adequate powers. The functional Directors are, in-turn, supported by professional executives
Name A K Sarmah Anjali Anand Srivastava Anupam Anand Avijit Ghosh C S Singhi C S Singhi G Srinivas K D Diwan K K Saberwal R Gossain Shakeel Ahmed Shakeel Ahmed

and

Chiefs

of

Operating

Units

in

discharging

responsibilities of their respective functional Area.

Designation Independent Director Part Time Official Director Director (Personnel) Director Co. Secretary & Compl. Officer Secretary Part Time Official Director Director (Operations) Director (Finance) Independent Director CEO Chairman and Managing director

pg. 29

Employees
HCL has an experienced and qualified management and technical team to operate and implement copper mines and expansion projects. Company management team includes

professionals with an average of over 30 years of experience in copper mining and refining.

All of permanent employees are unionized. HCL relations with our employees and unions are generally good, although they have in the past and may in the future experience industrial actions or disputes .Company has entered into wage and benefits agreements dated January 6, 2010 with recognized unions, further to which it revised pay scales and the terms of certain benefits, for a period of five years with effect from November 1, 2007.Union wage and benefits agreements are due for revision in November 2012. Registered Office is located in Kolkata. As on September 1, 2010, Company had 5,229 permanent employees as follows:

pg. 30

Strategy
Increase Focus on Copper Mining and Expansion of Our Mining Capacity Continue to Develop Long-Term Growth Prospects through Brownfield and Greenfield Exploration. Increase the Amount of Outsourcing Utilized for Our Mining Operations by utilizing third-party contractors. Continue to be a Low Cost, Efficient and Environmentally Friendly Mining Company. Seek Additional Sources of Income by commercializing waste materials generated by our production processes. Explore Acquisition of Mining Companies and Mines Within and Outside of India

pg. 31

TECHNOLOGICAL INNOVATION
Hindustan Copper Limited has to its credit some major contributions towards technological improvements in mining, beneficiation,

smelting, hydrometallurgy and by-product recovery. Some of the areas where Hindustan Copper Limited has introduced new technology are

MINING

Trackless Mining

Trackless mining has helped in rapid development of mines enabling higher levels of production and productivity comparable to

international standards. Drop Raising

Raising is one of the most difficult of mining operation, HCL has developed and perfected the concept of drop raising over 60m intervals. This has resulted in increased-safety and higher progress. A pattern of five 6 diameter holes has been standardized for the crater method of blasting the raises sequentially.

pg. 32

Large Diameter Blast Hole Stoping

HCL has developed single sub-level method of stoping using large diameter (162 mm) blast holes over level intervals of 50 to 60 meters. Need to have intermediate sub-level for drilling has been eliminated in this method. Excellent fragmentation has been achieved. Benefits of new stoping method compared with the conventional sub-level stoping methods are: Reduction in quantum of developments, drilling cost and explosive cos Overall reduction in the cost of mining Reduction of manpower and Reduction in stopes preparation time. The new method of stopping has revolutionized mining technology. Rock Bolting

For mining flat dipping ore bodies, timber support was common in early days. With the need to mine over a large width. HCL developed very simple but effective methods of rock bolting using cement grouted steel rods. This has resulted in the improvement of ground conditions ensuring higher safety standards.

Post Pillar Stopping

HCL has developed the post-pillar method of mining for adoption in flatly dipping wide ore bodies in ICC group of mines. This mining method has enabled the production rates to go up as compared to room and pillar stopes. Electrically operated LHD 's have been pg. 33

introduced at ICC for operating in these stopes. The output per man shift has increased and the stoping cost has come down substantially. Hydraulic filling of stopes with classified mill tailings has been established as a standard practice at the ICC resulting in regional improvement in ground conditions.

SMELTING

Oxygen Enrichment

HCL has also taken the lead in introducing oxygen enrichment in the converters at KCC and ICC resulting in effective control of accumulation of secondary products in smelting. HCL has also introduced oxygen enrichment in process air in flash furnace to effectively increase the capacity of the existing smelters for meeting increased production commitments.

Hydro-Metallurgy

Occurrences of large quantities of oxidized ore and lean grade sulphide ore at Malajkhand has impelled the company to extract copper values in the ore by dump leaching otherwise uneconomical by conventional methods. The dump is sprayed with dilute acidified solutions to dissolve copper minerals. The end product of this leaching operation is a pregnant liquor of copper sulphate. The leached liquor is then treated to recover copper metal. pg. 34

By-Product Recovery

HCL has established well equipped R&D facility at KCC and ICC. The R&D section is fully responsible for improvement in quality of the products, control of quality of raw materials, improvement of recoveries and for maximizing the recovery of by-products, HCL has developed its own Precious Metal Recovery plant which is now operating at ICC successfully. A Tellurium Recovery Plant has also been developed by R&D Wing. Extensively trails are going on for recovering cobalt, nickel and copper powder from converter slag. Attempts are also being made for reducing the losses from slag.

Quality Assurance
High quality of product and associated customer satisfaction is of supreme importance in HCLs operations. All actions are directed to produce a quality which not only satisfies the customers but prove to be a CUSTOMERS DELIGHT. In order to achieve this the Company has accredited itself with ISO 9002 certification for all its products viz. Copper Cathode and Copper CC Wire rods. Cathodes produced at Khetri Copper Complex, Rajasthan and Indian Copper Complex, Bihar are ISO 9002 accredited .HCL is the FIRST ISO accredited Company in India in copper production field.

All the units of HCL have adequate modern controls, test and analysis facilities to ensure proper quality pg. 35

at all stages of operation. The raw material input checks , in process controls and final testing of the product are all carried out as per laid down procedures . The final product of copper cathode are sampled batch wise and analyzed by sophisticated instruments like direct reading Emission Spectrometer, Atomic Absorption Spectro

Photometers and LECO Oxygen Analyzer.

At Taloja (C C Rod plant) cathodes are received along with their analysis certificates and finally Wire rods are produced by the South wire Technology. To ensure quality of the product following in-process checks and controls are routinely exercised as per a laid down procedure.
a.

Monitoring and control of metal temperature and oxygen content at the cast wheel

b. c. d. e. f.

Molten metal oxygen control by built in CO Analyzer Control of alcohol content and pH of pickling solution and mill coolant Monitoring and control of hardness of cooling water. Monitoring and control of soundness of cast bar. In line detection of flaws by eddy current flaw detector (Defectomat)

Final CC rods are subjected to the following qualifying tests before the rods are marketed.

a. b. c. d. e.

Diameter and ovality checks. Oxygen content analysis by LECO Analyzer. Reverse twist to failure (RTF) tests. 10 x 10 surface twist test. Percentage Elongation and Tensile Strength tests. pg. 36

f. g. h.

Conductivity tests. Depth of surface oxide tests. Spiral Elongation Number (SEN) tests.

Mile Stones Achieved

1967 Incorporation of HCL and assets at Khetri, Rajasthan transferred to HCL from National Mineral

Development Corporation Limited. 1972 Indian Copper Corporation Limited at Ghatsila, Jharkhand, nationalized by the GoI and handed over to the Company 1975 Smelter plant at KCC commissioned with capacity of 31,000 TPA 1982 1989 MCP commenced at Madhya Pradesh CC Rod plant at TCP commissioned with installed capacity 60,000 TPA, using south wire SCR- 2000 technology and natural gas as fuel 1994 1999 Equity Shares of the Company listed on the BSE First restructuring of the Company approved by the GoI 2002 Second restructuring of the Company approved by the GoI 2008 The Company was granted Miniratna-Category Istatus. 2008 Smelter plant at KCC commissioned with capacity of 31,000 TPA 2010 Awarded ISO 9001:2008 standard dated May 22, 2010 by the Bureau Veritas Certification (India) pg. 37

Private Limited certifying that the management system of this Company at TCP (in relation to manufacture of CC Rods in diameters of 8mm, 13 mm and 16 mm) has been audited and is in accordance with the

requirements of the standard.

pg. 38

Financial Analysis
10 Years at a glance
YEAR 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 1999-01 1998-99 1839.7 9 330.51 81.89 246.46 726.12 1991.2 4 462.61 1015.8 8 112.50 1799.6 1053.76 4 366.68 89.45 313.94 138.75 58.37 105.88

FOR THE YEAR 1349.1 Turnover 0 Gross 12.30 Profit/(Loss) Amortisatio 73.72 n Net (10.31) Profit/(Loss) Value Added 402.06 Value of 1344.2 production 8 AT THE YEAR END Share 462.61 Capital Internal 1026.9 Resources 5 Term Loans Cash credit 2.30 from banks Capital 1110.8 expenditure 5 gross Working 361.16 Capital Capital 570.86 employed Manpower 5440 (No.)

559.11 95.05 55.75 55.98 328.53 631.24

518.87 3.46 59.05 (56.16)

505.68 (88.13) 57.71

604.98

945.58

479.49 (121.33 ) 59.25

(116.61 (80.32) ) 58.12 90.19

781.08 385..39 1909.1 1053.34 8 977.45 195.60 948.95

(147.70 (184.04 (196.44 (172.01 ) ) ) ) 212.30 147.37 153.09 335.91 167.24 534.43 501.53 586.66 1001.66 513.47

948.95

908.95

795.11

710.11

543.61

536.61 190.97 372.36 84.16

(110.57 (298.85 (350.30 (310.39 (169.45 (0.49) ) ) ) ) ) 212.50 287.50 232.96 299.12 316.32 326.84 681.05 4.81 977.89 62.78 247.47 5583 118.23 967.71 33.94 234.55 5665 76.11 139.49 122.04 122.70

0.98 3.98 1037.0 6 492.06 657.48 5405 993.99 328.62 504.62 5451

995.10 1007.10 1024.77 1060.76 1066.21 (1.02) 215.28 5995 (25.95) 203.89 7865 7.51 249.29 9502 25.95 291.03 12043 6.49 298.71 15271

pg. 39

Annual Report
The financial performance for 2009-10 vis-a-Vis 2008-09 is summarized below : (Rs in crore) Particulars a. Sales b. Net of Extraordinary Income/(Expenses) c. Value of Production 2009-10 1429.85 2008-09 1349.10

(46.11) 1506.04

(30.80) 1344.27

d. Cost of production excluding depreciation, provisions, write-off and interest 1217.21 1278.20 e. Profit before depreciation, provisions, write-off and interest 242.72 f. Depreciation, provisions and write-off g. Interest h. Profit/ (Loss) before tax i. Provision for taxation - Current - Fringe Benefit - Deferred j. Profit/ (Loss) after tax

35.27

23.39 3.19 215.84

22.97 6.82 5.48

64.77 (3.61) 154.68 174.46

5.98 0.55 9.26 (10.31) 21.92 pg. 40

k. Cash Profit

PEER COMPANIES
Company Mkt Cap (Rs cr) 54,971 52,334 32,210 21,391 1,144 Last (Rs) EPS (Rs) P/E Income (Rs cr) Net profit (Rs cr) 4,900.49 4,960.72 4,351.85 814.22 193.28

Hind.Zinc Sterlite Inds. Hindalco Inds. Natl. Aluminium Ess Dee Alumin. Hind.Copper

130.10 155.70 168.25 83.00 357.00

11.42 15.13 12.83 4.15 36.82

11.39 10.29 13.11 20.00 9.70

11,624.67 24,856.55 65,121.25 5,774.14 631.25

23,727

256.45

2.42

105.97

1,508.11

154.68

Social Commitment
Hindustan Copper Ltd., since its inception, has made significant contribution for the upliftment of living conditions of the people of the areas where it had established its production units and mines. These areas were in Rajasthan, Bihar, Madhya Pradesh and Maharashtra and were comparatively rural and backward. HCL, has undertaken the following social activities under its rural development. pg. 41

Clean Drinking Water:

To provide clean drinking water to the people in surrounding areas of the units deep tube wells were provided on selected basis. Idea was to provide maximum benefit to villagers. Especially in Rajasthan, were water is always scarcity all time open water connections were provided to all the villages from Khetrinagar to Chaowra a stretch of 50 Kilometers.

Adult Education Classes :

To spread literacy amongst Adivasis adult literacy classes were taken to the doorsteps of the villagers. These classes with special emphasis on rural and Adivasi Women were conducted in different villages. Rural lady teachers were appointed who had to complete the basic course on 3 Rs, conduct tests and provide certificates.

Rural Medical Camps :

Apart from providing medical facilities to the deserving local population at project Hospitals. HCL also organized medical camps in rural areas, where team of qualified doctors diagnosed and provided free medicines to the villagers.

pg. 42

Vocational Centres :

HCLs units located in different areas had training centres, who in turn organized training camps for women belonging to economically weaker sections of the society. Training in basket weaving, caning of chairs, stitching of hand gloves used in the plants are some of the occupations which became popular in rural areas. Besides this, Eye Relief Camps, Family Planning Camps, Ayurvedic Camps for villagers, are permanent feature in the Units of HCL. Abatement of Pollution : Hindustan Copper Limited is fully committed to the concept of operating in an Environmental friendly atmosphere. In addition to the environmental protection measures that were in-built with the original project, additional steps have been taken to conform to all the regulatory standards prescribed by Pollution Control authorities. For this purpose, De-sulphurisation schemes have been successfully implemented both at KCC and ICC Smelters at an approx. cost of Rs. 113 crore using state of the art technologies to control Air Pollution due to Sulphur dioxide gas which emits out through Smelter off gases. Similarly full-fledged liquid Effluent treatment plants have been installed at all units of HCL to treat the water effluents and simultaneously to reuse the treated water in the process plants. Thus HCL has already achieved zero water Pollution.

To make the environments pollution free, all the Units of HCL organize mass plantation campaigns every year. Special emphasis is laid on plants survival. This is being looked after by the horticulture Departments of all the Units. pg. 43

SWOT Analysis
_______________________________________STRENGTHS

I.

Only Operating Producer of Copper Ore in India with Substantial Reserves. It has First Movers Advantage with Significant Mining Complexes. Indian Copper Ore Gives a Pricing Advantage in India. Vertically Integrated Operations Gives Us More Business Certainty and Flexibility. Ability to Capitalize on Indias Growth and Resource Potential. Experienced Management Team with a Track Record of Project Execution.

II. III. IV.

V. VI.

VII. VIII.

Good quality of copper cathode (99.99%) Well recognized client and customers across the globe.

______________________________________WEAKNESSES

I. II.

Ability to raise foreign capital may be constrained by Indian law. The limitations on foreign debt may have an adverse effect on its business growth, financial condition and results of operations.

III.

Performance is linked to the stability of policies, including taxation policy, and the political situation in India.

IV.

Stringent labor laws in India have adverse effect on profitability.

pg. 44

V.

Insurance does not cover all of the risks its face, and the occurrence of events that are not covered by our insurance could cause losses.

VI. VII. VIII.

not be able to pass the resulting increased costs to its customers. economic growth in India will be detrimental to results of operations. Depend on the experience and skills of management and certain key employees. Any loss of such persons or failure to timely replace such persons could adversely affect business.

IX. X. XI.

Old machinery Weak financial condition. Less no. of skilled employees.

_____________________________________OPPORTUNITIES

I.

In India, there is under-capacity at the mining stage vis-a-vis the demand. HCL is the only fully integrated copper producing Company in the country holding all operating mining leases.

II.

Out of 370 million tonnes of copper ore reserves in the country, HCLs lease rights cover more than 280 million tonnes.

III.

The Company has adequate opportunity to augment its mining capacity by increasing production from the existing mines and by developing new mines besides reopening some of the mines that were closed in the past.

IV.

HCL has reoriented its business strategy to take advantage of the situation and has planned to take the mine production level from the existing 3.15 million tonnes to a level of 12 million tonnes within next 57 years.

pg. 45

___________________________________________THREATS

The threat perception for the Company includes I. II. III. Great volatility of world copper prices. Increasing cost of inputs HCL may also witness threat to its market share on account of intense competition from imports and other domestic manufacturers. IV. Main business risks faced by HCL continue to be the volatility of LME price of copper and the hardening of rupee against US$ as these two factors determine the selling price of copper. V. As the capacity of the private players is far in excess of countries demand, the excess of production is normally exported by them. VI. With the economic downturn in the export market, there is a risk that these players would push their material in the local market bringing the price further down. VII. VIII. New event competitors Weak right setting of manpower.

pg. 46

SWOT Analysis

By: Monika

pg. 47

About HCL/ICC Ghatshila

Based in The Singhbhum district of Jharkhand, The main mines of this complex in Eastern sector are located at Mousabani, Surda, Pathrgora, and Kendadih. The heart of complex is a 1.3 million tpy concentrator, a 16,500 tpy smelter and a refinery of 8400 tpy. Concentrates from the ore mined at the Rakha copper project are taken to Moubhandar works of the ICC for further processing.ICC also has a Kainite Mine in the Singhbhum district in Jharkhand. In keeping with the companys plan to boost power generating capacity ,a 4.4 MW Turbo Generating set has been installed to bring up captive power supply to the large extent. Apart from reaching new heights of Productivity from the mines ,this complex has achieved notable success in the recovery of byproducts. these include Nickel Sulphate ,Selenium ,tellurium ,Gold ,and Silver. Plans are afoot for the extraction of other trace metals like Cobalt,Palladium,etc. Facilities for its personnel such as Housing,Education ,Social ,and recreational needs ,which were lacking during the time of takeover by the HCL ,are being improved upon to bring them at par with the other units of the company.

pg. 48

Employees at HCL/ICC
GRADES Class I (Skilled) Class II (Semi-Skilled) Class III (clerical) Class IV (Unskilled) Total no. of workmen NO. OF EMPLOYEES 150 5 794 186 1,135

NO. OF EMPLOYEES
Class IV (Unskilled) 16% Class I (Skilled) 13% Class II (SemiSkilled) 1%

Class III (clerical) 70%

pg. 49

The Product - COPPER

The strategic role of Copper in the entire development process ,is increasingly vital to ensure self-reliance in this metal ,which touches many key sectors of the economy. Copper and its alloy are indispensible especially to the electrical industry ,the transportation sector ,the general

engineering industry ,in the manufacture of commercial and consumer goods ,in building construction and hardware and of course to the defence sector.

Today Copper is a vital ingredient of the space age and is used in many areas including printed circuits. Copper is a non-magnetic metal with high conductivity, tensile strength and resistance to corrosion. On average, the Earths crust contains only 0.0058% copper, making it a scarce metal as compared with 8% aluminum and 5.8% iron. Most commercial copper ore deposits contain 0.5-0.6% (ore in India has an average copper content of 1.21.3%).

Copper production in India, which has grown steadily over the years, is entirely done by Hindustan Copper Ltd. In an urgent Endeavour to improve productivity, the company has embarked on various technological innovations and expansion plans and, is now poised to take the nation towards higher level of selfreliance. In addition, copper has several non-electrical applications such as tubes for air conditioners and refrigerators, foils for printed pg. 50

circuit boards and other industrial and consumer applications. Copper is also used in a number of alloys, including brass (copper and zinc), bronze (copper andtin), nickel silver, phosphor bronze and aluminium bronze.

*Source: CRU statistics; Ministry of Mines, Annual Report 2010

Copper Consumption
From 2000 to 2009, global copper consumption is estimated to have grown at an average rate of 2% per annum .Robust growth in Asia ,led by China, has resulted in significant changes to global consumption patterns during the last decade. Europe and North America, which used to consume over 50% of the worlds refined copper during the 1990s, accounted for only 32% in 2009. Asia, on the other hand, has emerged as the worlds most important copper market, growing at a CAGR of 7% between 2000 and 2009. In 2009, Asia consumed more than half of the worlds refined pg. 51

copper, with China alone accounting for nearly 40% of global consumption.

Global consumption growth slowed in 2008 during the global financial crisis, contracting by 1% in 2008 to just above 18 million tonnes, largely due to falling consumption in the worlds mature economies. The contraction was followed by modest growth of 1% in 2009.

Source: CRU, Analysis Copper Quarterly Industry and Market Outlook July 2010

The above graph illustrates the growth of refined copper consumption at present and in future in India for the periods indicated.

pg. 52

World Copper Consumption

pg. 53

Copper Production
Primary copper production starts with the extraction of copper ores. There are basically four stages of copper production, which are both independent and complementary of one another. Each of the stages of production can be done by independent companies, as each has a distinct application. Additionally, the different stages of production complement each other as they can be used in combination to produce the highest quality copper.

The stages include mining, smelting, refining and leaching.

The companies in the copper industry can be divided into three broad sectors: copper miners which mine ore to produce copper concentrate; copper custom smelters which smelt and refine copper from the concentrate obtained from copper mines to produce refined copper; integrated copper producers which undertake mining, smelting and refining or leaching to produce refined copper products. Alternatively, copper ore can be concentrated and refined using a hydrometallurgical process. The crushed ore is percolated in water or an acidic chemical solution to dissolve and separate the minerals. The copper is recovered from the resulting solution either through SX-EW or chemical precipitation.

Hydrometallurgical processing is typically used for low grade oxide ores and some sulphide ores. The end product is the same as through the smelting and electrolytic refining process described above refined copper cathodes. ICSG estimates that in 2009, refined copper pg. 54

production from SX-EW represented 18% of total global refined copper production.

Depending on the copper minerals and the types of equipment available, the subsequent pyrometallurgical treatment of the copper concentrate by smelters may take as many as three steps: roasting, smelting and converting. Roasting dries, heats and partially removes sulphur from the concentrate to facilitate smelting. The copper concentrate is then smelted to further remove wasten products and produce a liquid copper matte that is 35-75% copper. After smelting, the molten matte is processed in a converter to create blister copper that is 98.5-99.5% copper. The molten blister is fire refined to further remove waste products and then poured into moulds.

pg. 55

The cooled copper is called anode copper. In the final stage of purification, the anode copper is refined by an electrolytic process to obtain copper cathodes, which have a metal content of 99.99% copper. Copper cathodes are melted and cast into wire bars or continuous bar stock for wire manufacture, into slabs for mechanical use or into ingots for alloying.

Saleable Products
Products and Application The principal products in HCL copper refining business is copper cathode and continuous cast rods. It also produce sulphuric acid, copper sulphate, nickel sulphate and anode slime containing gold and silver, which are by-products of the copper smelting process. Copper Cathode HCLs copper cathodes are square shaped with purity levels of 99.99%. The cathode production processes at ICC smelting and refining plants are accredited with ISO 9001:2008 certification. The major uses of copper cathode are in the manufacture of copper rods for the wire and cable industry and copper tubes for consumer durable goods. Copper cathode is also used for making alloys such as brass, bronze and alloy steel, with applications in the defense, minting and construction industries.

pg. 56

Continuous Cast Copper Wire Rods Its cast rods have a homogenous structure and very fine grain size and can be drawn into ultra fine wires. HCLs continuous cast rods are used for power and communication cables, strips for power and distribution transformers and magnet wires as well as other products. large diameter continuous cast rods (11.0 mm,12.5 mm and 16.0 mm) are utilized for production of profiles and bus bars. The continuous cast rods can also be used as the basic raw material for the manufacture of wire and cable, including winding wire, telephone cables, power cables, wiring harnesses, house wiring cables and instrumentation and control cables. Precious Metals HCl has a precious metal recovery plant located at ICC. Precious metals, such as gold and silver, are found in certain quantities in copper concentrate. Gold and silver rates are based on the prevailing international bullion market price of the metals. These metals are extracted after copper refining to produce 99.95% pure gold and silver, as well as selenium and tellurium. The residue after extraction of gold and silver contains traces of platinum and palladium which can be sold as platinum group metal mix, commonly known as PGM. pg. 57

HCL suspended the operations of the ICC precious metal recovery plant in 2007 as founded it more economical to sell anode slime containing gold and silver rather than refine the precious metals itself. Accordingly, it sells anode slime containing gold and silver as a byproduct in the export market. By-Product Company has a sulphuric acid plant located at ICC. The sulphur dioxide gas generated from the flash furnace and converter is treated in the sulphuric acid plant to produce sulphuric acid and sells sulphuric acid, copper slag and copper sulphate crystals, which are by-products of company refined copper production processes, in the domestic and export markets. Main Saleable Product: Wire Bar Cathode Brass-Sheets Silver Gold Tellurium Nickel Sulphate Sulphuric Acid pg. 58

Products Blister copper Total anode Cathode Acid Selenium Gold silver

2005-2006 2006-2007 2697 3529 3295 1097 2357 320.696 kg 195.21 kg 14449 17330 12511 12606 -

20072008 15568 19297 15750 13453

20082009 160331 18975 14266 12101

20092010 16904 20042 10848 6750 -

7718.519 1078.294 166.07 kg 3353.6 kg 126.82 kg 1178.241 kg

Global Copper Market

Globally, copper products are generally consumed in five broad sectors: construction, electric and electronic products, industrial machinery and equipment, transportation

equipment and consumer and general products. Of these, construction is the largest sector for consuming copper, accounting for 37% of total world copper consumption in 2009. The main copper products consumed in the construction industry include building wire ,power cable, copper plumbing and air conditioning tube, copper sheet and alloy products.

pg. 59

Other copper and copper alloy products consumed by the construction sector include copper sheet, strip, rods, bars and sections plus brass products. Copper sheet is used for roofing, eaves, gutters, drain pipes for rainwater and lining for facades, while rods, bars and sections, along with brass products, are used for building fixtures and fittings. In hospitals, brass

doorknobs and push plates are widely used because it has been proven that they help to reduce cross contamination. Electrical and electronic products are coppers second largest consuming sector, accounting for 26% of total world copper consumption in 2009. Copper containing electrical and electronic products include telecommunication cable, power cable, transformer windings, semiconductors and motors for heavy appliances.

WORLD COPPER CONSUMPTION

pg. 60

Indian Copper Market

The total resources of Indias copper ore as on April 2005 (classified under the United Nations Framework Classification system) were estimated at 1.4 billion tonnes. Of these, 369.5 million tonnes (26.5%) fall under reserves(proved and probable categories) while the remaining 1.02 billion tonnes (73.5%) are remaining resources(under feasibility, pre-feasibility, measured, indicated and inferred categories). The largest resources of copper ore are located in the state of Rajasthan with 668.5 million tonnes (47.9%) followed by Madhya Pradesh with 404.3 million tonnes (29%) and Jharkhand with 226 million tonnes (16.2%). Copper resources in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra,

Meghalaya, Orissa, Sikkim,Tamil Nadu, Uttarakhand and West Bengal accounted for about 7% of the total of all Indian estimated resources. Including HCL, refined copper

production in India is currently dominated by four major producers. Jhagadia is currently focused on producing refined copper from recycled copper scrap with a total refined capacity of 50,000 tonnes per annum in 2009. At present, Sterlites copper business is principally one of custom smelting. As on 2009, Sterlites refined copper capacity was approximately 400,000 tonnes per annum. Hindalco is also primarily a custom smelter with a total refined copper capacity of 500,000 tonnes per annum in 2009. As Hindalco and Sterlite rely on overseas markets for almost their entire requirement of copper concentrate.Refined copper production in India has more than doubled from a modest 260,000 tonnes in 2000 to 715,000 tonnes in 2009. In pg. 61

fiscal 2010, Indias copper capacity was more than 1 million tonnes of copper, requiring approximately 100 million tonnes of copper ore.

pg. 62

HR POLICIES IN HCL/ICC

2.1. Introduction 2.2.Recruitment and Selection policy

2.3.Recruitment And Establishment

2.4.Selection Procedure 2.5.Probation Policy 2.6.Training and development policy 2.7.Health and Safety policy 2.8.Working time Policy 2.9.Conduct and Disciplines policy 2.10.Compensation and Benefits policy 2.11. Promotions and Incentives policy 2.12. Payment and Deductions policy 2.13. Employee Relation Policy

pg. 63

Introduction
Human resource is most important asset in any business or for any organization. It also plays a major role in speedy growth and maintaining stability of any organization. HR Policies and Procedures are important for legal compliance and effective management. Human resources is term which in many organizations describes the combination of traditionally administrative personnel functions with performance management, employee

relations, and resource planning. Human resource management

(HRM) is the strategic and coherent approach to the management of an organizations most valued assets the people working there who individually and collectively contribute to the achievement of the objectives of the business. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. Human Resources are

Personnel pool available to an organization. The most important resources in any organization are its human resources. Appropriate human resources assure an organization that the right number and kind of people are available at the right time and place so that organizational needs can be met. Successful human resource

planning should identify human resource needs. Once we know these needs, we will want to do something about meeting them.

pg. 64

Recruitment and Establishment

In HCL/ICC there is an altogether different department for the process of recruitment and selection which is called as recruitment and selection department. Recruitment is the discovering of potential

applicants for actual or anticipated organizational vacancies.

CERTAIN INFLUENCE CONSTRAINT MANAGER IN DETERMINING RECRUITING SOURCES:I. II. III. IV. Image of the organization Attractiveness of the job Internal policies Union requirement SOURCE OF RECRUITMENT: I. II. External Internal EXTERNAL INCLUDES I. II. III. IV. Employment exchange Advertisement Management institute Management consultant INTERNAL SOURCE INCLUDES I. Promotion pg. 65

II. III. IV. V. VI. VII.

Transfer Retired manager Recall from long leave Deputation personnel Recommendations Internal job posting

DIFFERENT STEPS INCLUDED IN RECRUITMENT Notification:-First of all the company notify to the Employee Exchange for new posts. Notification gets send to the exchange explaining all the detail which includes: I. II. III. IV. V. VI. Nature of vacancy. Number of vacancies. Pay and allowance. Place of work. Important dates for filling up the form. Particulars regarding interview/test.(eg. date/time of interview ,place of interview ,where and whom to report). VII. VIII. Preferences and obligation. Any other relevant information.

CERTAIN INFLUENCE CONSTRAINT MANAGER IN DETERMINING RECRUITING SOURCES I. II. III. IV. Image of the organization. Attractiveness of the job. Internal policies. Union requirement.

pg. 66

Selection Process
Selection is defined as the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job .Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job.

ROLE OF SELECTION Selection is crucial for the organizations effectiveness for two reasons: 1) Work performance: Performance of the organization is very important to the success of the company. So the organization always employs people who are well qualified and competent.

2) Cost incurred: cost incurred while selection process also plays an important role .This can be explained with an example: Pepsi went on a crash recruitment drive. Six people from the company took over Oberoi business center for six days. 3000 people who had responded to the advertisements earlier issued were scanned: people were asked to respond within 100hrs by fax. People selected forth interview were flown into the city. This eg just shows how expensive selection can be. Hence cost incurred is very important forth success of the selection process.

The difference between recruitment and selection: pg. 67

Recruitment is identifying n encouraging prospective employees to apply for a job And Selection is selecting the right candidate from the pool of applicants.

SELECTION PROCEDURE: 1) Job Analysis: Job analysis includes dividing the application according to the nature of the job. 2) Initial Screening: Includes screening of the documents send by the applicant and making a list of the qualifying candidate based on the educational qualification, experience, and background. 3) Test: Conducted by the company to select only the eligible candidate .A Candidate who achieves the qualifying marks proceeds to the next step. 4) Interview: Selected candidate have to go through interview and group discussion of a management panel of HCL/ICC. 5) Medical Fitness: A medical test gets conducted by the HCL doctors and only a fit candidate gets an offer letter. 6) Offer Letter: Offer letter is issued to the finally selected candidate including all the rules , regulation .it includes I. II. III. codes of conduct. pay scale and allowance. joining details(date ,place ,reporting authority) pg. 68

IV.

Declaration of Acceptance.

7) Verification and reference check: In this step company verifies all the details provided by the candidate through following sources Verification of antecedents/character from civil bodies/legal authorities. Previous organization/organizations and other sources.

Probation policy
Employees remain on probation for a period of six months, at the end of which they gets confirmation. Confirmation is dependent on to the satisfactory conduct and performance of the employee during the probation period. In case the conduct and/or performance is not satisfactory during the probation period and/or not found medically for confirmation service gets terminated without any prior notice or compensation. During probation period the training authorities constantly check the employees performance and also keeps an eye on the nature and all the activities of the employee. Induction Program This program specially organized by the company to introduces new joinee to the company, making them aware of the structure and working environment ,about campus ,location ,company history ,present status, achievements , and other necessary details.

pg. 69

Employee Training
Employee training is the planned effort of an organization to help employees learn the job related behaviors and skills they will need to do their job properly. It is a set of planned activities that the organization will have their employees complete in order to increase their job knowledge and skills and to have them get accustomed to the attitudes and social atmosphere of the company. It will help the employee to be familiar with the goals of the organization and the job requirements. There are typical steps that go into a training program. These are outlined below. 1.Conduct Needs Assessment :A need is described as a "gap" between what is currently known and what will be needed now and in the future. These gaps in knowledge could be between what an organization expects to happen and what actually does, how employees are performing on the job and how the organization desires them to perform, and existing skills and desired skill level. In order to conduct an assessment there are some analyses that must be done. Organizational analysis:-An organizational analyses determines the effectiveness of an organization, where training needed and under what conditions the training will be conducted. Task analysis:-A task analysis is used to provide data about a job or group of jobs, and the knowledge, skills ,attitudes and abilities that are needed to achieve optimum performance. This information can come from job descriptions, task analyses, employee questionnaires and interviews ,performance evaluation, and observation of the workplace. pg. 70

 Personal analysis:-Analyses how well an individual employee is doing their job and determines which specific employees need training and what kind of training. The methods of this kind of analysis include employee questionnaires and interviews, performance evaluation, skill and knowledge testing and the observation of behavior and results.

2.Training Methods:The two most frequently used training methods include Lecture: Lecture involves one-way communication, from instructor to learner - the learner is passive in the process.

On-the-job-training:

This

method

involves

such

methods as

apprenticeship and mentoring, where the employee is actively engaged in the type of work they will later be doing on their own. Simulations: Employee being placed into a simulated situation of what may occur in real on-the-job situations. Techniques include: Case studies where trainees analyze a problem outlined in a report and offer solutions; Part of the implementation of the training is making sure that the training is actually teaching the employees the skills they will need - this is known as the Transfer of Training. A more technical definition is: the extent to which the knowledge, skills or attitudes learned in the training will be used or applied on the job.

3) Training Evaluation:

Used to evaluate the reactions of the learners, measure the learning that occurred, identify business results that are due to the pg. 71

training and calculate if the investment in training has had any return in the gains of the company .Business results can be measured in "hard" data and "soft" data. Hard data are measures of productivity, quality, material costs, absenteeism and turnover. Soft data is items such as job satisfaction, teamwork, and organizational commitment on the part of the employees. If the result is up to the expectation mark the candidate gets letter of conformation ,a certificate for successful completion employee can be called as the a permanent employee and join the respective department.

pg. 72

Health and safety policy

As a Public sector unit HCL comes under the factories act 1948 ,and Mines Act,1952 to insures the health ,safety ,welfare of all the employees within the company .Workers (Safety Health & Welfare) Act,1986;

____Health Every factory shall be kept clean and free from effluvia arising from any drain, privy or other nuisance, and in particular.

I. Disposal of wastes and effluents: Effective arrangements are made in factory for the treatment of wastes and effluents due to the manufacturing process carried on therein, so as to render them innocuous and for their disposal. II. Ventilation and temperature: Effective and suitable provision are made for adequate ventilation by the circulation of fresh air, and such a temperature will secure workers therein reasonable conditions of comfort and prevent injury. III. Dust and fume: No stationary internal combustion engine operated unless the exhaust is conducted into the open air, and no other internal combustion engine are operated in any room unless effective measures have been taken to prevent such accumulation of fumes there from as are likely to be injurious to workers employed in the room. IV. Artificial humidification :Prescribing methods to be adopted for securing adequate ventilation and cooling of the air in the workrooms. pg. 73

V.

Overcrowding :No rooms in any factory are overcrowded to an extent injurious to the health of the workers employed therein.

VI.

Lighting: In every part of a factory where workers are working or passing there are provided and maintained sufficient and suitable lighting, natural or artificial, or both.

VII.

Protection of Eyes: significant rules are made to ensure the eye protection as well as other precautionary measures are taken.

___________________________________________________Safety A safety officer ensures the safety of all the employees working in company. I. II. III. Work on or near machinery in motion. Excessive weights. Pressure plant: any plant or machinery or any part thereof is operated at a pressure above atmospheric pressure, effective measures shall be taken to ensure that the safe working pressure of such plant or machinery or part is not exceeded. IV. V. Employment of young persons: on dangerous machines. Striking gear and devices for cutting off power : Factory suitable devices for cutting off power in emergencies from running machinery shall be provided and maintained in every work-room. VI. Self-acting machines. No traversing part of a self-acting machine are allowed and no material carried, if the space over which it runs is a space over which any person is liable to pass, whether in the course of his employment or otherwise, be allowed to run on its outward or inward traverse within a distance of 2ft[forty-five centimeters] from any fixed structure which is not part of the machine.

pg. 74

VII.

Prohibition of employment of women and children near cottonopeners.

VIII.

Hoists and lifts: HCL made sure that all the machines are of good mechanical construction, sound material and adequate strength properly maintained, and are thoroughly examined by a competent person ,and a register are kept containing the prescribed particulars of every such examination.

IX.

Lifting machines, chains, ropes and lifting tackles. Floors, stairs and means of access. Pits, sumps, openings in floors, etc

X. XI.

Precautions in case of fire. Maintenance of buildings: Safety of buildings and machinery. specifications of defective parts or tests of stability

XII. XIII.

Precautions in case of fire: Effective measures are taken to ensure that in every factory all the workers are familiar with the means of escape in case of fire and have been adequately trained in the routine to be followed in such cases.

XIV.

Explosive or inflammable dust, gas, etc Where in factory any manufacturing process produces dust, gas, fume or vapour of such character and to such extent as to be likely to explode on ignition, all practicable measures are taken to prevent any such explosion by i. Effective enclosure of the plant or machinery used in the process.

ii. Removal or prevention of the accumulation of such dust, gas, fume or vapour, iii. Exclusion or effective enclosure of all possible sources of ignition. XV. XVI. XVII. XVIII. Precautions against dangerous fumes, gases, etc. Safety of buildings and machinery. Maintenance of buildings. Permissible limits of exposure of chemical and toxic sub-stances. Right of workers to warn about imminent danger. pg. 75

_____________________________________________Welfare I. II. Facilities for sitting. First-aid appliances. provided and maintained so as to be readily accessible during all working hours first-aid boxes or cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed 1*[at any one time] in the factory. III. IV. Canteens, Shelters, rest rooms and lunch rooms. Welfare officers are employed in the factory to make sure the welfare work are done in a proper manner. Other health and safety related rules: Internet use policy: Appropriate use of electronic mail. a. reach the harassment and discrimination or other policies of the Group through. b. By amongst other things, sending or forwarding inappropriate messages or viewing inappropriate material; c. breach the intellectual property rights of persons who make material available on the Internet; d. Upload any non-work related computer program or image to the Groups computer system; post any non-work related messages to any Internet bulletin board, discussion list, newsgroup or other publicly accessible discussion forum. e. View material only for business purposes and not for any other purpose; Smoking policy:Committed to providing its employees with a smokefree working environment. pg. 76

 Alcohol and drug policy :Committed to providing and maintaining a working environment that is healthy, safe and productive for all of its employees. Employees in the workplace who are affected by illegal drugs (drugs) or alcohol may be a danger to themselves, as well as to others. a. must not attend for work under the influence of drugs or alcohol; b. must not perform duties while under the influence of drugs or alcohol; c. must not consume drugs or alcohol on work premises; and d. must not sell or distribute, alcohol or drugs during work hours or on work premises.

pg. 77

Working Time Policy

a. Weekly hours: No adult worker are required or allowed to work in factory for more than forty-eight hours in any week b. Daily hours:- Subject to the provisions of section 51, no adult worker shall be required or allowed to work in a factory for more than eight hours in any day. Provided that, subject to the previous approval of the Chief Inspector, the daily maximum specified in this section may be exceeded in order to facilitate the change of shifts. c. Intervals for rest: [The periods of work] of adult workers in company and factory each day is so fixed that no period shall exceed five hours and that no worker shall work for more than five hours before he has had an interval for rest of at least half an hour . d. Spread over: The periods of work of an adult worker in a factory shall be so arranged that inclusive of his intervals for rest under section 55, they shall not spread over more than ten and a half hours in any day: e. Prohibition of overlapping shifts: Work shall not be carried on in any factory by means of a system of shifts so arranged that more than one relay of workers is engaged in work of the same kind at the same time. f. Register of workers: The manager of every factory maintains a register of workers, to be available to the Inspector at all times during working hours, or when any work is being carried on in the factory, showing (a) the name of each adult worker in the factory; (b) the nature of his work; (c) the group, if any, in which he is included; (d) where his group works on shifts, the relay to which he is allotted; pg. 78

g. Notice of periods of work: displayed and correctly maintained in every factory in accordance with the provisions of sub-section (2) of section 108, a notice of periods of work for adults showing clearly for every day the periods during which adult workers may be required to work. h. Night shifts: Where a worker in a factory works on a shift which extends beyond midnight (a) For the purposes of sections 52 and 53, a holiday for a whole day shall mean in this case a period of twenty four consecutive hours beginning when shift ends; (b) The following day for workman should be the period of twenty-four hours beginning when such shift ends, and the hours workman worked after midnight shall be counted in the previous day. Shift timing for HCL workers:Shift A B C General General office Shift Timing 6am to 2 pm 2am to 10 pm 10 pm to 6 am 7-30 am to 12 noon 8.30 am to 12.30 pm 1.30 pm to 4.30 pm(on Sunday-8.30 am to 1.00 pm only.)

pg. 79

Conduct and Discipline Policy Conduct

Conduct can be defined as a dynamic process and endless. There are few examples .A workman I. Should maintain absolute integrity, devotion to duty, and respect and value other employees as well as control and supervise workmen working under supervision. II. III. Refrain from doing anything which is unbecoming of a public servant. Position should not be used to influence directly or indirectly to secure undue benefits. IV. should not engage or participate in any demonstration which involves incitement to an offence. Except without previous sanction of the competent authority A Workman should not get engage in any of the following:

I. II.

Any demonstration which involves incitement to an offence. In radio and television program or contribute an article or write a letter either in your own name, anonymously. Or with pseudonymously. In the editing or publication of any newspaper. However this is not required in case of literary, artistic, professional or scientific character.

III.

Accept employment with any private firm which has official dealing with the company.

IV.

Get engage in the trade or business or undertake any other employment.

pg. 80

V.

Bring or attempt to bring any outside influence to further in own interest in respect of matters pertaining to the service in the company.

VI.

Criticize the policy any of the central government or state Gov. of the company.

VII.

To obtain any valuable thing by any member of the family acting on behalf without consideration or with inadequate consideration.

VIII.

Obtain for self or for any other person or any other valuable thing or pecuniary advantage by corrupt or illegal means or by abusing own position as a public servant.

IX. X.

Engage in sexual harassment of any women at work place. Take part or assist in any manner in any movement/agitation or demonstration of a political nature. election of any legislature or local authority or become office bearer of political party or an organization which takes part in politics.

XI.

Take part in Accept any fee or remuneration or any pecuniary advantage from any work done for any public body or any private person.

XII.

Enter into any transaction concerning any immovable or movable property with a person or a firm having official dealing with workman himself or subordinates.

A workman should: I. Forthwith intimate the competent authority on entering into a marriage with a person that of other than that of Indian Nationality. II. III. Avoid habitual indebtedness. Take due care that performance of duties is not affected in any way by the influence of any intoxicating drink or drug.

pg. 81

IV.

Report within one month to the competent authority every transaction concerning movable property owned or held in the own name or in the name of family member if the value of such property exceeds 15,000/-

Code of Conduct
____________________________________________Definition The Board have laid down a code of conduct for Directors and senior executives for promoting sound corporate practices and ethical conduct on the part of all concerned.

This Code of Conduct applies to:

All the Directors of Hindustan Copper Limited (Company); and the Senior Management employees of the Company i.e. who are of the rank of General Manager and above including all functional heads who have the opportunity to materially influence the integrity, strategy and operations of the business and financial performance of the Company.
All

___________________________________________Objective The purpose of this Code of Conduct is apart from meeting the requirements of Listing Agreement with the Stock Exchanges is to :

Articulate the high standards of honesty, integrity, ethical and law abiding behavior expected of Directors and Senior Executives;

pg. 82

 Encourage the observance of those standards to protect and promote the interests of shareholders and other stakeholders (including employees, customers, suppliers, creditors and society at large);

Guide Directors and Senior Executives as to the practices thought necessary to maintain confidence in the Companys integrity; and

set out the responsibility and accountability of Directors and Senior Executives to report and investigate any reported violations of this code or unethical or unlawful behaviour. _____________________________________Salient Feature This Code of Conduct lays down the following guidance for observance by Directors and Senior Management personnel of HCL :

Honesty and integrity

The Company expects each Director and Senior Executive to : (a) Observe the highest standards of honesty, integrity and ethical and law-abiding behaviour when :

(i) Performing their duties ; and (ii) Dealing with officers, employees, investors, creditors, customers, suppliers, auditors, lawyers, other advisers of the Company and Government Authorities ; and

pg. 83

(b) Foster a culture of honesty, integrity, ethical and law-abiding behaviour among other officers and employees. Conflicts of Interest or Duty 2.1 Each Director and Senior Executive must be aware of potential conflicts between (directly or indirectly): (a) On the one hand: (i) The interests of the Company; or (ii) Their duties to the Company; and (b) On the other hand: (i) Their personal or external business interests; or (ii) Their duties to any third party.

2.2 Each Director and Senior Executive must avoid placing himself or herself in a position that may lead to: (a) An actual or a potential conflict of interest or duty; or (b) A reasonable perception of an actual or potential conflict of interest or duty.

2.3 Each Director and Senior Executive must: (a) Fully and frankly inform the Company of any personal or external business interest that may lead to: (i) An actual or potential conflict of interest or duty; or (ii) A reasonable perception of an actual or a potential conflict of interest of duty; and (b) Obtain and follow independent legal advice to avoid or resolve any actual, potential or perceived conflict of interest or duty.

pg. 84

Compliance Procedures

with

Laws,

Regulations,

Policies

and

Each Director and Senior Executive must: (a) Comply with the letter and spirit of any applicable law, rule or regulation; (b) Comply with the protocols, policies and procedures of the Company; (c) Encourage other officers and employees to do the same. Confidentiality

a) Any information acquired by a Director or Senior Executive while performing their duties which is confidential in nature, must not be disclosed except where that disclosure is : (i) Authorized by the Board; or (ii) Required by law or a regulatory body. b) The existence and details of any Board and management information, discussions, and decisions that are not publicly known and have not been approved by the Board for public release, are confidential information of the Company. c) Each Directors and Senior Executives obligations of confidentiality continue even after he or she leaves the Company.

Disclosures a) HCLs policy is to provide full, fair, accurate and timely disclosure of required information in reports and documents that are filed with or

pg. 85

submitted

to

any

outside

agency

and

in

its

other

public

communications. b) A Director or Senior Executive must ensure that Companys disclosure controls and procedures, and internal controls for financial reporting are properly complied with.

Misconduct
The term misconduct connotes a vast number of actions. Following are the illustrations of misconduct while performing duty: I. II. III. Habitual late or irregular attendance or willful absence. Acting in a manner prejudicial to the interest of the company. Willful insubordination or disobedience, whether alone or I combination with others ,of any lawful and reasonable order of the superiors. IV. V. VI. VII. Gambling within the premises of the company. Giving false particular relating to the employment. Gross or willful negligence. Drunkenness or riotous or disorderly or indecent behavior in the premises of the company or outside such premises where behavior is related to or connected with the employment. VIII. IX. X. XI. Smoking within the premises of the company where it is prohibited. Damage to the any property of the company. Sleeping while on duty. Commission of any act subversive of discipline of goal behavior. pg. 86

XII.

Abetment of or attempt to abetment of any act which amounts to misconduct.

XIII.

Demanding or accepting gratification other than illegal remuneration in respect of an official act or for using influence with any other official.

XIV.

Commission of any act which amounts to a criminal offence involving moral turpitude.

XV.

Collection without permission of the competent authority of the money within the premises of the company except as sanctioned by any law of the land or rules of the company.

XVI.

Theft ,fraud or dishonesty in connection with the business or property of the company or of property of another person within the premises of the company.

XVII. XVIII.

Possession of assets disproportionate to source of income. Absence from the assigned place of work without Permission or sufficient cause, without leave or overstaying the sanctioned leave for more than four consecutive days without sufficient grounds or proper or satisfactory explanation.

XIX.

Cases of misappropriation, forgery, or cheating or other similar criminal offences.

XX. XXI.

Blatant violations of systems and procedure of the Company. Exercise of discretion in excess, where no ostensible/public interest is evident.

XXII.

Failure to keep the controlling authority/superiors informed in time about any irregularities/shortcoming noticed during the course of work which may adversely affect the interest of the company.

XXIII.

Interference or tampering with any safety device installed in or around the premises of the Company.

pg. 87

XXIV.

Purchasing properties, stores, machineries etc. from or selling to the Company without express permission in writing from the competent authority. _________________________________Disciplinary Procedure There are established procedure to check the growth of the indiscipline, misconduct and subversive action in HCL .Conduct, Discipline and Appeal Rules of the company deal with the disciplinary procedure in respect of the executives. The penalties that can be imposed under this rule are

Minor penalties 1. 2. 3. Censure Withholding of promotion Withholding of increments of pay with or without cumulative effect. 4. Recovery from pay or such other dues , the whole or part of any pecuniary loss caused to the Company by negligence or breach of orders. Major Penalties 1. Reduction to a lower grade or post or to a lower stage in a time scale. 2. Removal from service which shall not be a disqualification for future employment. 3. Dismissal

pg. 88

_______________________________Disciplinary Authorities In HCL/ICC a different panel is made or an officer is appointed to decide the penalties and also implementing the of disciplinary action for Executive

Sl.no. Grades

Disciplinary Authority

Penalties it Appellate can Authority impose All

Reviewing Authority

E8 & E9

CMD

A Board committee of functional Directors headed by CMD CMD A committee of functional Directors headed by CMD. CMD

2.

E3 to E7 All

Functional Directors

E1 to E2 Project and below head/ Executive Director(HR)

All

Functional Directors

pg. 89

Compensation and Benefits Policy

___________________________________________Allowance 1. Dearness Allowance It is paid every quarter with effect from 1st Apr,1st July,1st October and 1st January based on the percentage increase or decrease in the quarterly average of All India Consumer Price Index (AICPI) for the period of a) December-February, b) March-May, c) June-August and d) September-November respectively over AICP 1708(Base1960=100)

2. Travelling Allowance Employees of HCL are entitled for travelling

allowance if their journey is taken for the following purposes.

a. Tour on official duties. b. To appear in the departmental examination. Interview or selection test conducted by the Company. c. Recall from leave. d. Transfer. e. Leave travel concession. f. For medical examination/or treatment as permitted under Company rule. pg. 90

g. To participate in sports ,training programs/seminars and conferences or appear for interview for appointment in the Company. h. Superannuation/retirement. i. Appearing in court of law, departmental, or vigilance enquiry or for interview for appointment in the company. j. Journey of family to home town/anywhere in India where they intend to settle in the event of death of employee. k. Discharge/termination on medical grounds. l. To receive national/state and /or companys award or any other award duly approved by the Chairman cum Managing Director.

Grades E4 above &

Entitlement Air AC 1STclass by rail. Highest class by steamer Actual taxi fare or Rs.6.70/km by own car or actual whichever is lowest. 1st class or AC II tier Sleeper by rail. Highest class by Steamer. Rs.5.00/km by road or actual whichever is less 1st class or AC II tier Sleeper by rail. Highest class by Steamer or middle class if there are more than two classes. Rs.2.75/km by road or actual whichever is lower. 2nd class Sleeper by rail. Lowest class by Steamer or middle class if there are more than two classes. Rs.1.40/km by road or actual whichever is lower.

T8-T10, C5,C6,and E0 to E3 T3-T7, C3,C4

T1,T2, C1,C2

3. Daily Allowance: In addition to Travelling Allowance, employees are entitled for allowance for outstation duty.
Period of actual absence from headquarters Amount of daily Allowance (DA)

pg. 91

Each completed period of 24 hours 12 Hours or more but less than 24 Hours Less than 12 Hours

One Full DA One Full DA DA

Long period of tour to any particular place is regulated separately by competent authority with reference to rules. Specification on DA: a. Daily allowance is admissible for holidays or forced halts during tour, but not for any leave availed during. b. Period of absence begins when employee leave respective

headquarter on scheduled time of departure and end on return to the same place .Period of delay in departure/arrival time os taken into consideration. c. When an employee during a tour is treated as a guest of another agency ,the rate of daily allowance will be 25% of actual DA. However ,when : a. Lodging is free entitled to DA as per rate provided. b. Boarding is free-entitled to 50% DA and actual accommodation charges. Accommodation charges and Daily Allowance on official tour.
Sl.No. Accommodation charges subject to maximum entitlement(Rs.) Specified Ordinary localities localities Daily Allowa nce for food and inciden tals(Rs ) 5 460

1 1.

2.

2 E9 and above E8

3 Actual

4 Actual

4,500

80% of

425

pg. 92

3. 4. 5. 6. 7.

8.

E5E7 E3 & E4 E1 & E2 E0 T8T10, C5 &C6 T3-T7 C3 & C4 T1,T2 C1 & C2

3,300 2,500 -do1,125 1,000

specified localities -do-do-do-do-do-

400 330 260 220 200

750

-do-

190

375

-do-

130

Ceiling rates of accommodation charges are exclusive of taxes and service.

4. Transfer allowance On transfer from one unit to other, employees are entitled to reimbursement of actual expenses occurred during transporting personal effects from old to the new station as under:

Category

Weight limit 2 1500kg 3

Places connected by rail

Places not connected by rail 5 6 Cost of transportation by road limited to half truck load.

1 T1,T2 C1,C2

4 Actual expenses subject to maximum expenditure incurred had the maximum

Expenses reimbursable subject to limits laid down in col.2.

Actual expenses or twice the amount as per Goods train, whichever is

pg. 93

T3-T7 C3,C4 C5,C6 E0-E3

3500kgs Full wagon

-do-do-

luggage been transported by Goods train. -doActual expenses subject to cost transporting ,full wagon load of full personal effects by goods team. -do-

less.

-do-do-

-do-do-

E1 and above

Full wagon or two containers by railway container service.

-do-

-do-

-do-

Entitlement towards Transfer Grant ,Dislocation Allowance on transfer.

Category Transfer Grant Expenses incidental to journey(for travel by rail only)* Two extra fares as entitled , limited to 1st class rail fare -doOthers Dislocation Allowance

T1,T2 C1,C2

Rs.5,000

Travelling expenses for self and family as per entitlement -do-do-

NonExecutives

Rs.8,000

T3 to T7 C3,C4

Rs.7,000

E0-E4 E5 and Above

Rs.11,000 Rs.15,000

T8 to Rs.9,000 -doT10,C5,C6,E0 to E3 E4 and above Rs.11,000 -do-

-do-

*Note- In case of travel by air ,no incidental is admissible. pg. 94

Octroi duty ,entry tax ,terminal tax ,insurance charges for transportation of personal effects/vehicle on production of receipts.

There

are

terms

benefits

Superannuation/Retirement, Death, Termination on Medical Ground. In case transportation of vehicle on transfer where head of expenditure is freight in amount reimbursable is actual freight between two stations in case of railway and actual or freight admissible had the vehicle been transported by train ,whichever is less in case of transportation by road.

5. Canteen Allowance Its Rs.16/day of attendance on regular working day .

6. Night-shift Allowance Paid@Rs.30 per shift is to executive and Rs.25/shift to workmen who perform duty in the night shift commencing from 9.00 pm onwards.

7. House Rent Allowance HRA is paid to employees at projects Rs.100/month to the nonexecutive.

And at the offices at the rate of 30%of basic pay.

8. Conveyance Allowance If any employee is using his vehicle for office purpose then it can be reimbursed by producing the vehicle running and maintenance bill. pg. 95

For two wheeler vehicle amount paid is Rs.900/For 4 wheelers E0 .Rs.1500/E1 to E4.Rs.2300/E5 and aboveRs.2500/-

9. Subsistence Allowance Paid during the suspension period of an employee at the rate of 50% (basic+DA) . But in case of punishment or stern action nothing will be paid.

pg. 96

Holidays and Leaves

I. National Holidays: 1. 26th January 2. 15 August 3. 2nd October II. Closed/Restricted holidays:

1. 3 closed holidays on festival occasions. 2. 4 restricted holidays out of an exhaustive list declared in the beginning of each calendar year. ___________________________________________________Leave Company is liberal in granting leave provided by the work of employees department is not dislocated. Leave is not claimed as a matter of right. Employees can be granted leave provided work of the department is not hampered. Authority have the discretion refuse revoke leave, if the exigencies of work demand this. Leave application should be made in the standardized proforma available in respective department. Application for leave should come sufficiently in advance. Employee cannot suddenly absent on medical grounds ,please enclose medical certificates ,both for unfitness to work initially and fitness to work when employee report back for duty. pg. 97

Casual leave : Casual leave is admissible for 1 day/month in a calendar year. 12 days in a calendar year. Is not cumulative. Holidays ,restricted holidays ,off days intervening a spell of casual leave will not be included as casual leave. Can not exceed 10 days at a time. Can not be combined with any other kind of leave other than special casual leave or leave without pay.

Earned Leave:

An executive is eligible for earned leave at the following For 1st year of service:-@ 1 day for every 22 days. For subsequent years:-@ 1 day for every 11 days. Cannot be Earned during any period of leave except during casual leave or special leave. Any holiday or leave falling within the spell of earned leave counted as earned leave. Can be accumulated up to a maximum of 300days.

For non-executive Employed below the ground:-1 day per every 12days of work.(days of attendance). pg. 98

 Employed above the ground:-1 day per every 15 days of work.(days of attendance). Note:- Calendar years service deemed to have been completed 240 days of attendance.

Additional earned leave: 5 days bonus leave is given on completion of 260 days of attendance. Can be accumulated upto 300 days.

Sick Leave After completing every calendar year a workmen is entitled to avail 1 day sick leave per month. 12 days on full pay. 24 days on half pay. Accumulated up to 240 days on half pay. Accumulated up to 120 days on full pay. Can be given only on medical ground. Ceiling has been removed.

T.B Leave

Given in case if any workmen is suffering from a disease tuberculosis. 12 months on half pay. And 12 months without pay. 6 months at a stretch and then 2 months. Can be extended to a period of 18 months. pg. 99

Quarantine Leave: Given in the case if any member of employees household is suffering from any infectious disease. on certification by District Public Health Officer or Chief Medical officer of the project. Special casual leave of maximum of 30 days in a year is allowed for quarantine due to infectious diseases.

Transit Leave: Employee is entitled for this leave when is transferred from one station to another. 6 clear working days including Sundays and holidays and1 day for travel of 400 kms distance or part thereof. For airtime its restricted to 1 day only.

Study Leave: Granted for full time course of study in a recognized institution/university in advanced scientific, technical or professional subjects directly related to employees sphere of duties and is of distinct advantage of the Company.. Employee must have a proven record of good conduct and satisfactory performance Should have completed five years of service in the company. Should not be over than 50 years of age. Granted only once. pg. 100

 Period will be maximum of 24 months. Can be extended to 12 months in case of exceptional circumstances. Maternity Leave:

In accordance with the provisions of the Maternity Benefit Act 1961 as amended from time to time female employees are entitled for this leave. a. Pre-natal leave:-6 weeks or 42 days. b. Post-natal leave:-42 days. In case of exceeding these leave it gets adjusted from other leaves. It does not get accumulated.

Special Disability Leave:

Employee disabled by injury inflicted or caused in consequence of the duty the due performance of official duty. Granted on full pay not exceeding 90 days. ________________________________________Leave Encashment Company offers the facility of yearly encashment of the leave earned by employees during the course of their service. Following conditions apply before availing this service, leave encashment Is Admissible only once in a calendar year. Is Maximum of 30 days or 50% of the total Earned Leave standing to employee credit whichever is higher can be encashed at a time. Is Restricted to 30 days per year. pg. 101

 Per day Rate is calculated on the basis of salary drawn by the employee in the month preceding the month in which encashment is availed / 26 (working days). Is calculated including basic pay(including special pay), dearness allowance, City Compensatory allowance and Local Allowance, but excluding all other allowance like House rent allowance, Conveyance allowance etc. Now cap has been removed from the encashment of Earned leave. Employees are eligible to encash half pay leave/half pay sick leave(after being converted into full pay leave)only at the time of retirement from the service of the company of the Company on attaining the age of superannuation.

pg. 102

Expense policy
Reimbursement Of Conveyance Expenses: Employee drawing reimbursement of conveyance Expense will not be eligible to use office vehicle or taxi fare or other cost for discharging their duties on working days including their off days including those of holidays. Entitled for reimbursement of conveyance Expense only when journey is beyond the 8kms but within the municipal limits of H.Q.s for official work. For reimbursement of conveyance Expense employee have to apply through their Controlling officer, along with attested copies of document in support of and ownership of vehicle and also controlling officer will clarify that it is being used for the office purpose only. Transport Subsidy: Executives are paid Transport subsidy if they do not utilize Companys transport or do not claim local travelling

expenses/reimbursement of Conveyance expenses from the company at the rate of Rs.300/-month, and non-executive Rs.12 per day of attendance. Reimbursement of travel expenses for leave travel concession availed on certification basis Category T1/T2/C1/C2 T3-T7,C3 & C4 T8-T10,C5 C6,E0-E3 E4 and Above & Reimbursement of to and fro fare AC Chair car by rail First class by rail First class by rail AC first class by rail. pg. 103

____________________________________________Concessions Company provides Leave Travel Concession also called as LTC. In which company pays for the employee and employees family for travelling to any place in India. Eligibility All regular employees who have completed one year of service . Family The term of LTC family means : a) Employee spouse(only one) b) Legitimate children, step children, legally adopted children(including elder sons upto 25 years of age), married and widowed daughters so long they are residing with and wholly dependent on the employees. c) Parents provided they are residing with and are wholly dependent upon the employee. Note:- In order to declare dependent, the income of the dependent member from all sources should not exceed Rs.3,000/ .scholarship/stipend are not treated as income for deciding dependency of dependent children. There is no age restriction for physically handicapped or mentally retarded and wholly dependent and residing with the employee. Married daughters will cover only dependent daughters who are divorced, abandoned, or separated from their spouse and are residing with the employee. Entitlement An employee can avail LTC for self or/members of his family restricted to 6 adult by entitled class twice in a block of 4 years-once

pg. 104

for home town and once for journey to any place in India or twice to home place in a block of 4 years. LTC can be availed for four family members in case of employees joining after 1.1.2006.

LTC on certification basis In lieu of availing LTC to home town On a certification basis it can be availed up to 500kms each way restricted to 4 adult and for 1600 kms in lieu of LTC to any place in India.

Home Town Home town should be permanent home town or village as declared by employee on joining the service of the Company and accepted by the competent authority. In exceptional case once change of the home town can be accepted by the competent authority in whole service period.

Any place in India Any place in India means anywhere in India within the territory of India whether on mainland or otherwise. Shortest Route: Route to reach LTC destination most speedily from work/or posting place by using entitled mode of travel.

pg. 105

Promotion and Incentive Policy

_______________________________________Incentive schemes Incentive schemes comprises of following 4 components: a) Business Performance Incentive (BPI) b) Operating Cost Incentive (OCI) c) Production Output Incentive (POI) d) Direct Production Incentive (DPI)

The four components of incentive, their objective and entitlement, broadly defined broadly defined for employee categories are:
Incentive Component BPI (Business Process Incentive) OCI (Operating Cost Incentive) Objective Equal to or more than 100% MOU Target. Threshold 104% of last year cost per unit output. Threshold 80% of MOU Target. a) Entitlement All employees 100% All employees 100% (Except employees at Ho and other offices) Production, maintenance &Technical services 100%. Services stores 75% General Services 33% -office Timing Direct Production 100% Production Support -Direct 2/3 of (a) Production Support Indirect of(a) General Service Nil

POI(Production Output Incentive)

b) c)

DPI(Direct Production Incentive)

Reward individuals/group production performance as per IE Standards/Design Capacity. Threshold is 80% performance for group.

a) b)

c)

d)

pg. 106

______________________________________Executive Promotion Company offers growth opportunities to its employees consistent with their Seniority, qualification, performance and growth potentials. Executives are classified into three groups for determining the qualifying period of service for promotion. Group I For Technical Posts Degree in engineering/technology with appropriate statutory qualifications. Degree with appropriate professional qualifications. Degree in medical science Degree in medical science with post graduate degree of specialization. Post graduate degree in Chemistry.

For Non-Technical Posts For clerical Duty Medical Posts For specialist Duty Medical Posts R $ D Posts in Analytical Laboratories For post in geology cadre Group II For Technical Posts

Post graduate degree in Geology.

For NonTechnical Posts

Recognized diploma in engineering/technology Or A degree in science with appropriate statutory qualifications. Recognized diploma in engineering/technology Or University Degree in Arts/Science/Commerce Or Pass in Intermediate Examination of the Institute of Chartered Accountants or Institute of Cost and Works Accounts.

pg. 107

Group III Posts in mining cadre and survey cadres Other Technical and Non-Technical Posts Matriculation with Forman/Mines Surveyor Certificate of Competency under MMR Matriculation and qualified in prescribed departmental tests.

Promotion of executive as per approved channels of promotion in accordance with the cadre scheme indicated in the HCL(Recruitment and Promotion rules)for executives.

Prescribed Minimum Length of Service in the lower grade for promotion to the next higher grade:Length of service (in years)in lower grade for promotion to higher grade E E E E E E 1 2 3 4 5 6 3 3 3 3 3 3 3 4 5 6 N N A A 5 6 N N N N A A A A

Group s I II III

Exceptional Case:-outstanding performers in Group-II and Group III can be considered for promotion up to E5 and E3 respectively with the approval of the appointing authority.

____________________Departmental Promotion Committee (DPC) It is constituted by the appointing authority for posts to be filled in by promotion. Normally consist of at least three Executives of appropriate status and rank in relation to the posts to which pg. 108

promotions are being considered. The basis of promotion is Merit with due regard to Seniority. Merit is judged by the DPC on the basis of the Executives past performances, records etc. For determining the suitability of Executive for promotion, DPC considers a. Qualification b. Length of service and Annual Performance Appraisals. c. Reports of the Chief vigilance officer, if any. The recommendation of the DPC is subject to the approval of the appointing authority.Persons selected for promotion are arranged in order of their inverse seniority in the grade from which they are they are promoted. Exceptional Cases: If a person is outstanding and deserve special consideration, the DPC may place him in higher position vis--vis his seniors.

Other Promotion Methods: a) Time Scale Promotion: An executive of E1 level belonging to Group I will be entitled to be promoted to the E2 level on completion of 4 years service at E1 level, subject to satisfactory performances records. It is confined to Group-I executives only. b) Seniority: Determined by the merit order in which recruitment or promotion is made to any category of posts, provided the Executive recruited or promoted joins within 120 days from the date of joining. If the executive joins later than 120 days, seniority will be effective from the date of joining the post. pg. 109

Inter-seniority is determined in the category of same category of posts, employees relative rating is determined in the panel by the DPC/or Selection Committee. Executive up to E4 level who completed 10 years of service and 48 years of age are given the next higher scale of pay which is treated as personal to him on the basis of their satisfactory performance records but without any change in his existing designation.

_________________________Promotion Policy For Non-Executive For non-executive the promotion policy is different for different plant. It is based as per the guidelines and norms provided in the recruitment and promotion rules and after due approval of competent authority.

pg. 110

Performance Appraisal System

The executive performance Appraisal System is used to access the performance of executive. The Main Objective of the system are: I. To integrate individuals executive roles and goals with those of Organization objectives through performance linked assessment. II. To distinguish between different level of performance on relative basis and to identify executives with potential to grow in the organization. III. To indentify the Training and Development actions to be taken to enhance the performance. IV. To increase awareness of tasks/targets and the responsibility to ensure fulfillment of the same.

The appraisal process consist of the following: I. Self Appraisal II. Performance Review and Planning III. Performance Assessment. IV. Development plan V. Final Evaluation and Grading Few Important things related to Performance Appraisal system. a) The reporting officer access the specified job Performance and Management ability factors on a 5 point basis. From Outstanding to a minimum of Poor. b) There is ten factor Performance Assessment for executives in the level of E1 to E4. c) There are twelve factors Performance assessment for E5 to E8.

pg. 111

d) Each factor has been assigned weight to indicate its importance in the overall assessment.

Calculation of Score Factor score is calculated by multiplying the scale point tick marked with the assigned weight of the factor i.e. Factor score=Scale point tick marked*weight. The aggregate of factor scores is the total of Appraisal score. The assessment Factors and corresponding weightage are given below in the table:

For the executive at the level of E-1 to E-4 A. Job Performance Factors 1.Quantity of output 2.Quality of output 3.Cost/time control 4.Job knowledge and Skill B. Managerial Ability Factors 5.Planning and Organizing 6.Problem Analysis and Decision Making 7.Managing Human Resource 8.Lateral Coordination 9.Team Building 10.Communication Skills 11.Conceptual Skill 12.Managing Skill 2 2 2 2 1 1 3 3 2 2 2 1 1 1 Weightage 5 5 5 5 E-5 toE-8 Weightage 4 4 4 3

pg. 112

________________________Performance Scales for Executives The existing Performance Appraisal System provides for 150 marks. It is divided into two parts viz.50% for the reporting office rand 50% for the reviewing officer. Final grading is given by reviewing committee.

Based on the marks secured out of 150, the Executives are read on the following scales:

Rating

Outstanding

Total Apprais al/Factor score 131 to 150

Remarks

Very Good

106 to 130 76 to 105

Good

Fair

41 to 75

Poor

1-40

Exceptional overall performance distinctly stands out compared to others. Overall performance of high standard. Better than majority. Satisfactory overall performance. Meets the job requirements. Performance barely adequate. Requires improvement in certain areas. Performance inadequate and well below acceptable standards.

pg. 113

________________________Annual Assessment of Non-Executive Non-Executive employees are assessed by their reporting officer through a stipulated annual assessment Performa. Non-Executives are assessed with reference to the factors like Devotion to duty, discipline, dependability. Suitability Efficiency Integrity Punctuality Work habits Inter-personal relationship Knowledge of the rules and procedure Initiative Quality of Work, Efficiency in work, work habits, Safety Attendance Punctuality Defects in character if any like, insobriety, indebtness etc which militate against efficiency, outstanding work, suitability for promotion etc .this is also an integral part of non-executive assessment system. The assessment made by the Reporting officer will be reviewed by the Reviewing officer.

pg. 114

______Service Linked Advancement Scheme (For Non-Executive)

Objective of this scheme To remove the feeling of stagnation and foster motivation. Eligibility Employee who has completed 6 years of service in a particular scale of pay Benefits Employee gets placed to next higher scale without any change in the designation. Seniority will be retained which employee has held in the post held by him in the previous scale of pay. Service Linked Promotion Scheme A non-executive whose channel of promotion is to the immediate next higher scale of pay to which he may normally be eligible for promotion as per R & P Rules and has completed six years of service in the same scale of pay is being placed in the next higher grade. A non-executive who, as per channel of promotion, gets two scale jump is eligible for being placed in the next higher scale of pay to which he may eligible for promotion as per the R & P rules if he has completed nine years of service in the same scale of pay.

pg. 115

A non-executive who, as per channel of promotion, gets more than two scale jump is eligible for being placed in the next higher scale of pay to which he may eligible for promotion as per the R & P on completion of ten years of service in the same scale. The grant of personal scale of pay will not lead to any change in designation.

________________________________Inter-Unit Awards Schemes Objective The objective of the HCL award schemes are to bring following changes amongst employees: To induce spirit To bring in a sense of competitiveness To encourage inter-unit competitiveness in various areas of activity. Best performing unit in a financial year is judged by a committee of Judges constituted by Chairman cum managing Director on the following parameters: Production and Productivity Safety House Keeping Industrial Relation Environment and Ecology

pg. 116

The award can be shared between more than one unit in a perticualr financial year, depending on performance.

Criteria and Weightage Areas 1. Productivity 2. Safety 3. House Keeping 4. Industrial Relation 5. Environment and Ecology Total Weightage 80% 20% 20% 20% 20% 100% Marks 160 10 10 10 10+5 200

___________________________________________Other Benefits 1. Underground Allowance: For Executive Employee holding underground duties are eligible for this allowance. Subject to Minimum stipulated hours of work underground every day. Rate is @15% of the existing basic pay to maximum of 1650/- per month. For Non-Executive On the basis of actual days of attendance. Paid only when required to work underground for minimum stipulated hours. Rate is @20% of basic pay. However for calculating underground allowance basic pay is reduced by Rs.1500/-. pg. 117

Cash Incentive For Blood Donation In case of employee Rs.100/- is paid along with one day leave. In case on non-employee donates blood to employee Rs,50. Attendance Bonus The attendance Bonus as applicable for non-executive Slab Rates(Rs. Per month) 250 150 75 Nil

Not a single day absence in a calendar month Absence one day in a calendar month on authorized leave More than one day absence in a calendar month on authorized leave Unauthorized absence/absence on without pay even for one day in a month

_________________________Payment and Deduction Policy Pay Scale Grade T1/C1 T2/C2 T3 T4 T5/C3 T6 T7/C4 T8/C5 T9/C6 T10 Revised Pay 8680-3%-15840 9080-3%-16560 9480-3%-17350 9880-3%-18060 10280-3%-18880 10680-3%-19610 11080-3%-20350 11480-3%-21090 11889-3%-21880 12100-3%-24760

pg. 118

Retirement Policy
HCL as all other public sector units has its retirement policy considering the benefits of its employee. The retirement benefits includes: Provident Fund Gratuity Half Pay Leave Voluntary Retirement Benefits I. Provident Fund Definition

As the name suggest, provident fund provides employee with a lumpsum financial support on cessation from the service of the Company, apart from various loans and withdrawal during the period of service.

Eligibility

All regular employees of the Company including persons by or through contractor in connection with the work of the establishment. But, excluding retired/superannuated person, apprentice, trainee, casual labour are required to become member of the Fund from the date of the joining the Company.

Contribution pg. 119

 Employee contribution :12% of emoluments i.e (basic + D. A), employee may contribute more if wish so. Company contribution:Will be limited to 12% in any case. Here pay includes personal pay and non-practicing allowance. If the service rendered is more than 6 months it will be counted as 1 year. Company does not contribute when employee is not in a position to contribute. i.e leave without pay.

Interest At present interest paid on both contribution is 8.5% per annum.

Withdrawal

Company may permit employee to withdraw from the fund to meet:o Medical expenditure of employee or his family member. o Expenses on purchase of lands and buildings of a dwelling house. o Marriage expenses. o Funeral expenses. o Any other religious occasions. o Purchase of equipment to minimize hardship on account of physical handicap etc. as per rule.

pg. 120

Nominations A nomination in favor of a member of family in the prescribed form to receive the amount in the event of death of the employee is required. Employee may nominate more than one nominee. Employee has to clearly specify the amount to be shared by the nominations. In case if employee does not have a family he may nominate anyone. Nominations can be changed by filling a fresh nomination. II. Gratuity Employees working in HCl are eligible for gratuity in accordance with the Payment of Gratuity Act, 1972. Paid at the rate of 15 days salary (basic+DA)for each completed year of service Only payable to the employees who completes least 5 years of service with the Company. Maximum gratuity is 10 lakh.

Calculation Up to 30 years of service (Wages26) 15 no. of years of service rendered. Beyond 30 years (Wages26) 30 no. of years of service rendered.

pg. 121

 For computing gratuity if the service rendered in excess of 6 months beyond 30 years period of service is taken as one completed year of service. If an employee is on leave without pay during the last month of service, gratuity is calculated taking full months salary/wages. In case of death or permanent incapacity due to bodily or mental infirmity the amount of gratuity is calculated as under:

Period of service During the first year of service

Amount of Gratuity 2 months emoluments

After 1 year but before 5 years service After completion of 5 years of service

6 months emoluments 12 months emoluments or gratuity as under the Act whichever is higher.

Forfeiture Can be partially or wholly fortified if the services of an employee is terminated for his notorious or disorderly conduct, act of moral turpitude provided the offence is committed in course of his employment or any other of violence in his part. If the omission or negligence causing any damage or loss or destruction of property belonging to the company, gratuity will be fortified to the extent of the damage or loss so caused.

pg. 122

III. Half-Pay At the time of retirement an employee is eligible to encash Half Pay Leave/Half Pay Sick Leave (converted into full pay leave).

IV. Voluntary Retirement Benefit This is a retirement, which employee taken by own willingness. These benefits are also same with Retirement Benefits.

V. Death Benefit HCL is liable to pay under the workmens compensation act, 1923 or any compensation act at per with the said Act. Payable under group personal accident policy. Rs. 61,750/- is paid to the dependent of employee who die while in service of the company. Paid to the nominee of the deceased employee. Not paid in following circumstances If death has occurred due to the Righteous or disorderly conduct. Any act of violence on his part. Intentional self injury or suicide.

Social Security Schemes 1. Ex-gratia payment in case of accident: In the case of injury caused by accidents resulting in permanent total disability as prescribed in the section 2(b) read with schedule 1 of the pg. 123

workmens compensation act,1923 and where such permanent disablement occurs otherwise than in the course of (and arising of) employment ,an ex-gratia lumpsum amount of Rs12000/- is paid to the workman only in case when there has been no violation of Section 3(b) of the Workmens compensation act,1923 or involvement I acts opposed to public policy. 2. Ex-gratia in case of fatal accident:Adhoc ee-gratia of Rs.3,000/- is paid to the person entitled receive PF amount in case of fatal accident arising out of and in cource of employment in case of non-executive. 3. Employee Benefit Program Scheme:As a security measures company offers insurance policy to all of its employees under employee benefit program scheme. The scheme envisage worldwide coverage on 24 hrs basis. The insurance covers accidental death, Permanent total/ partial disability including those on account of Terrorism and in case of employment. The maximum benefit under the scheme is Rs. 2.50 lakh. However in case of compensation under any statutory liability arising out of any kind of accident is more than benefits available under this scheme, the company will make a payment of any extra amount thus involved.

pg. 124

4. Benevolent Fund Scheme: Objective: To provide financial assistance to the families of death of the employee while in employment in the company due to any reason whatsoever. Eligibility: All employees on permanent roll of the company (including trainees inducted for employment in the company on successful completion of training) are deemed to be members of the scheme. Benefits: Benevolent grant is sanctioned to the nominee of the deceased employee calculated @ Rs.40/- per employee as on rolls of the company as on the last date of the month in which the death has occurred. The sum of Rs.40/- includes employees contribution of Rs.20/- per death and a matching contribution made by the company. Paid within a period of 90 days of the death. Paid To the nominee of PF. If there are more than one nominee than, the benefits gets distributed amongst all of them in the ratio mentioned by the deceased for PF.

__________________________________Employee Relation Policy Employee Engagement

A successful employee engagement strategy helps create a community at the workplace and not just a workforce. When employees are effectively and positively engaged with their pg. 125

organization, they form an emotional connection with the company. This affects their attitude towards both their colleagues and the companys clients and improves customer satisfaction and service levels. Beyond initial recruitment and induction, employee engagement activities can be broken into a number of groups. These include: I. II. III. IV. V. Communications activities Reward schemes Activities to build the culture of the organizational Employee participation in Management Team building

I.

Communication Activities

Company continued to improve communication with the employees through various measures. Communication programmes relating to safety,productivity and energy conservation were also organized at the Unit level. The Companies quarterly House Journal Tamralipi published in Hindi and English was well circulated. For better dissemination of information, Personnel Policies/Rules/Amendments were placed on the Companys website and could be accessed by the employees. The Company is also using its internal e-mail facilities to improve communication in general. Image building exercises gained momentum through extensive news and media coverage. The Company has also made its presence felt in the national and international fora through quality participation. The Company has introduced a system of centralized farewell functions at all Units for its retiring employees on the last working day pg. 126

of the month which is held at Unit Head level. Retiring employees are also paid their payable dues as per rules on their last working day.

II.

Reward Schemes

Reward schemes are an important part of a company's overall employee engagement program. to remove barriers to satisfaction in the organization; framework for rewarding everyone in the organization for their performance; give those who are motivated by financial gain an opportunity to achieve this. This includes Compensation and benefit program This includes the Allowance
o o o o

Holidays And Leaves Leave Encashment Expense Policy All other type of Concessions

Recognition programmes In HCL there are following programmes for recognition o Incentive Schemes o Performance Appraisal System o Promotion Policy Long service and good performance awards o Annual Assessment o SLAS pg. 127

o Annual increment at the rate of 3% (Basic+DA) every year on the 1st of April. In the following increment ratio 3rd year - 3% 6th year - 3%+3% 12th year- 3%+3%

III.

Activities to build the culture of the organizational Communal Harmony and National Integration In the Company townships at Khetri, Malanjkhand and Ghatsila as well as at other places of work, employees and their family members live in a spirit of harmony and togetherness and joyously celebrate all religious and social festivals irrespective of caste, creed, religion and language. In pursuance of Government directives based on the Judgment of the Honble Supreme Court in Visakha case, the Company has set up Committees for Prevention of Sexual Harassment of Women at Work Place at all the Units/Offices of the Company. A provision in this regard has also been incorporated (Clause 19.2) in the HCL Conduct, Discipline and Appeal Rules, 1979. Progressive Use of Hindi The Company continued its thrust on implementation of Official Language policy of the Government of India. Hindi workshops are conducted in the Units and Corporate Office at regular intervals. Hindi fortnight and Hindi Day gets celebrated in the Offices and Units of Company from 14th to 28th September 2009, under which various competitions were organized to generate interest among employees towards use of Official Language Hindi and winners get. The pg. 128

messages of Honable Home Minister, Honble Mines Minister, and CMD circulated / read out in all Offices/Units on the occasion of Hindi Day. During the year 2009-10 the Company participated in both the half yearly meeting of Town Official Language Committee (PSUs), Kolkata held on 28/08/2009 and 29/01/2010.In-house Journal of the Company "Tamralipi" continued to be published both in Hindi and in English which were regularly distributed among the employees. The Annual Report as well as HR Policy Guide of the Company were also published in Hindi and English. "Every Day One Hindi Word scheme is operational for improving the Hindi vocabulary among the employees Representation of SC/ST/OBC community employees in the Company Out of the total manpower of approx 5300, the representation of employees belonging to SC, ST and OBC communities was 16.55%, 12.47% and 12.43%. IV. Employees Participation in Management Employee participation in management has been the backbone of harmonious Industrial Relations in the Company. Successful operation of various bi-partite fora at all the three level, namely, at the Apex level, Unit level and the Shop floor level have contributed in a major way to the smooth functioning of the Company. V. Team building Culture-building activities are great for generating a feeling of belonging, but all organisations are build out of smaller teams who can get on and work together. pg. 129

o Social activities, such as family gatherings and barbeques o Community outreach activities such as volunteering and fund-raising.

Conflict Resolution
Conflict management refers to the long-term management of intractable conflicts. It is the label for the variety of ways by which people handle grievancesstanding up for what they consider to be right and against what they consider to be wrong. Those ways include such diverse phenomena as gossip, ridicule, lynching, terrorism, warfare, feuding, genocide, law, mediation, and avoidance. Which forms of conflict management will be used in any given situation can be somewhat predicted and explained by the social structureor social geometryof the case. Conflict management is often considered to be distinct from conflict resolution. In order for actual conflict to occur, there should be an expression of exclusive patterns, and tell why the conflict was expressed the way it was. Conflict is not just about simple inaptness, but is often connected to a previous issue. The latter refers to resolving the dispute to the approval of one or both parties, whereas the former concerns an ongoing process that may never have a resolution.

____________________________________Grievance Redress HCL Continuously strives to create and sustained a grievance free climate in the organization. For redressal of grievances, readily accessible machinery is available for prompt redressal of the same. pg. 130

It is dealt by the Department of Administrative Reforms and Public Grievances Objective I. To provide an opportunity to have a direct dialogue with the supervisors for prompt redressal of their day-to-day grievances in order to promote harmonious industrial relations. II. To provide a multi-level mechanism for settlement of individual grievances. III. To settle individual grievances at the lowest level of the mechanism as far as practicable in the interest of its expenditure. Scope: Matters outside the scope of grievance procedure:a) Collective bargaining such as wages, allowance, bonus, hours of work and other benefits etc. b) Cases of grievances arising out of discharge and dismissal, c) Individual grievance relating to punishment as a result of disciplinary action against the workman. Procedure: 1. An aggrieved workman in the first place present his grievances verbally in person to his immediate supervisor, who in turn would try to resolve the grievances within two working days.

2. If not satisfied than employee can forward the complain in a prescribed form to the head of the department. Department head discuss the problem with the HR department. The Aggrieved workman may be assisted by a co-worker,if he desires so. pg. 131

The decision will be communicated within 10 working days.

3. If workman not satisfied with the reply of the department head, he may proceed to the Chairman of Grievance Committee. The receipt of the complaint will be acknowledged by the committee comprising the Unit head(Chairman of the committee),representative of HR department (Secretary of the committee), representative of the Recognized Union and the aggrieved workman (who may be assisted by the a coworkman of his choice) will discuss and decide the issue and communicate its decision to the workman within 15 working days. Unanimous recommendations will be send to the workman. If not unanimous, the Committee will refer the grievance along with record note of discussion to the head of Project under intimation to the concerned workman.

4. On receipt of the and other related papers from the Grievance committee, the Head of the project will decide the issue within 15 days from the reference of the grievance to him by the grievance to him by the Grievance committee.

5. The decision of the Head of the Project will be final.

pg. 132

_______________________________________Process Flow Chart

Note:-DARPG- Department of Administrative Reforms and Public Grievances.

pg. 133

Analysis of Policies Followed BY HCL/ICC

3.1.1.1 Analysis 3.1.1.2 Limitations 3.1.1.3 Recommendations 3.1.1.4 Conclusion

pg. 134

Analysis
______________________________________Positive Aspects

I. II. III. IV.

HCl has sound grievance procedure system and policy Executive level employees are aware of their rights and duties. It has defined line of recruitment, selection, and establishment. Follows all the rules and Indian Government acts and policies to ensure health, safety and benefits of the employee.

V. VI.

Has a fair promotion, increment and incentive policy. Has adopted the information technology system and also trying to minimize the manual work.

________________________________Areas for Improvement

I.

There is less emphasis on factors like management style, motivation of work, leadership etc.

II. III. IV. V.

Less focus on developing new training programs or simulations. There is considerable lack of new ideas and techniques. No consultancy programs are developed for employees. Communication gap between the HR department and the employees and also the employees and the management. Lesser no. of employees than its required. Time office still gets operated by very few experienced employee. Every employee is not efficient to work on new technology. pg. 135

VI. VII. VIII.

IX.

Company should have more control over Labour union to avoid frequent bandhs and strikes which hits the productivity.

___________________________________________Limitations

The study was intended specially to evaluate the HR policy and its effectiveness however it lacked in following due to following reasons:

I. II. III. IV. V.

Work is dependent on secondary data provided by HCL/ICC. Limited access to the information according to the topic. Time constrains Limited time period according to the extensive study of the topic. Most of the management officials have to take out time from their working schedule to help trainees, which is some time not possible due to heavy work load.

VI.

There is whole lot information and knowledge which can be shared from the highly experienced cooperating officials however the limitation of the internship does not allow exploring it all.

VII.

Visiting plant frequently is restricted due to the safety reasons for the interns as well as other employees not working in plants.

VIII.

The information provided in the documents are also of at least 2-3 years back which does not give the exact idea of Companys Growth and Performance.

IX.

Limited information is provided on the online website giving just an idea approx present status of the Company not the exact.

pg. 136

____________________________________Recommendations

I.

The Company should focus in lightening the work load so that employee can give not only quantity but the quality output.

II. III.

New technology should introduce to train the employees. There should be control of the Company on the Workers Union as to avoid interference in the Company work and productivity.

IV.

Rewards should be more focused on performance based to motivate and enhance the morale of the employee.

V.

There should be more strict adequate steps should be taken to decrease the absenteeism rate.

VI.

Manger should take out sometime to interact and understand the view of employees working under them to decrease Communication gap.

VII.

The target should be made of shorter period if possible and then analysis should be made to access the performance of the employee.

VIII.

With maintaining a service book by hand a monthly score card should also be maintained to keep a close eye on the performance.

pg. 137

_________________________________________Conclusions

Indian Copper Complex is the only Copper producing Company which has been Nationalized by the Government of India in March 1972 and handed over its management and ownership to the HCL. In HCl/ICC HR plays a vital role in the improvement and maintaining the success of the Company. It work according to the guideline the acts and policies of Government of India recommended for all factories and Mines and insures its employee safety, growth and benefits. It empowers its employees of their duties and rights. It can be said that the implementation of the human resource is bringing a very positive change in the working structure of the Company and enhancing its productivity. However the Company can introduce few techniques like 6sigma, psychometric tests to motivate the employee and to monitor and enhance the performance accordingly. There is a clear satisfaction emerging on the clarity of the roles and responsibilities, importance given to the ideas of people and believe in the company plan and goals. Higher satisfaction level can highly motivated the people of the organization and can make them highly productive which is essential in the future plan of HCL/ICC.

pg. 138

____My Experience And Learning At HCL/ICC: A Personal Perspective As an intern I think I am very fortunate to get a chance to study in such a renowned Organization with a superbly qualified and experienced workforce. It has been a very encouraging training experience at HCl. The Conducive work environment and Cooperative workforce is so influential that if I get a chance ever in future I would really be very happy to join the Company and work for it. As there is a lack of manpower in the organization and there is a heavy work load on the officials still they take out time to help the new intern which really makes a very positive impact. The Conducive work environment and Cooperative workforce is very influential. At the very beginning I spent time learning about the safety and hazards of the factory. Head of the department Mr.Hareshwar Singh taught me about this. Then it came collecting knowledge about the project topic which started with the interaction with the Time office where I understood how HCL manages and keeps each day, monthly and annual record of all the activities of its employee during working hours. After time office I had a regular conversation with the HR department to collect the knowledge about the functions and implementation of HR policies where I got help from Mr.Prasad, Mr.Y.V.Chandrashekhar, Mr.A.S.Vema, Mr.Harbhajan Singh and Mr.R.B.Verma and getting instructions and guidelines from Mr.M.R.Barik for completing the project.

pg. 139

There is a vast pool of knowledge that can be explored if have ample of time. All the officials at HCL are knowledgeable with a long term experience with HCL which makes them very efficient and perfect for doing their job. This also helped me in gaining the information related to my topic and also got to know the necessary information related to any organization beyond the topic as well. All the organizational process gives a new dimension to the way we think. I feel myself proud that I have contributed to the organization, though in a very negligible way by providing a detail study on the functioning of the HR policy which I could analyze. The journey of 60 days was amazingly helpful in expanding my knowledge towards the HR functions and policy. It is the one of the best professional experience that had been added a boon to my theoretical and practical knowledge.

pg. 140

Reference and Appendices

o o o o o o o o o o o Human resource management VSP Rao HCL Website HCL Annual Reports HCL internal Journals, magazines, Training manuals and Publications Wikipedia Mckinsey Quaterly S.P.Robbins and Mary Coulter - Management Harris and Moran Managing Cultural Differences Dwyer Trends in Global Compensation DQ Mills, Labour management Relation Web based resources, search engines (Google, Yahoo, MSN), Web resources by Govt. of india

pg. 141

EMPLOYEE SATISFACTION SURVEY

Please take a few minutes to complete this survey. Your specific answers will be completely anonymous, but your views, in combination with those of others, are extremely important. To insure your anonymity, {COMPANY NAME} retained an independent consultant to design the survey, receive the completed questionnaires, and interpret the findings.

1. Overall, how satisfied are you with {COMPANY NAME} as an employer? (Please circle one number) Strongly Disagree 1 2 Disagree Neutral 3 Agree 4 Strongly Agree 5

2. HCL/ICC 's leadership and planning (Please circle one number for each statement)

I have confidence in the leadership of HCL/ICC ....................... 1 ........... 2 ............ 3 ........... 4 ............5 There is adequate planning of corporate objectives ................. 1 ........... 2 ............ 3 ........... 4 ............5 Management does not play favorites ....................................... 1 ........... 2 ............ 3 ........... 4 ............5 Management does not say one thing and do another ............ 1 ........... 2 ............ 3 ........... 4 ............5

3. Corporate Culture (Please circle one number for each statement)

Quality is a top priority with HCL .............................................. 1 ........... 2 ............ 3 ........... 4 ............5 Individual initiative is encouraged at HCL/ICC.......................... 1 ........... 2 ............ 3 ........... 4 ............5 Nothing at HCL//ICC keeps me from doing .............................. 1 ........... 2 ............ 3 ........... 4 ............5 my best every day

4. Communications (Please circle one number for each statement)

pg. 142

HCL/ICC 's corporate communications are frequent enough .... 1 ........... 2 ............ 3 ........... 4 ............5 I feel I can trust what HCL/ICC tells me.................................... 1 ........... 2 ............ 3 ........... 4 ............5 There is adequate communication between departments ........ 1 ........... 2 ............ 3 ........... 4 ............5

5. Career Development (Please circle one number for each statement)

I have a clearly established career path at HCL/ICC ................ 1 ........... 2 ............ 3 ........... 4 ............5 I have opportunities to learn and grow ..................................... 1 ........... 2 ............ 3 ........... 4 ............5 If you have been here at least six months, please respond to these performance appraisal items My last performance appraisal accurately reflected my performance ...................................................................... 1 ........... 2 ............ 3 .. 5 4

The performance appraisal system is fair ................................. 1 ........... 2 ............ 3 ........... 4 ............5

6.

Your Role (Please circle one number for each statement)

I am given enough authority to make decisions I need to make1 ........... 2 ............ 3 ........... 4 ............5 I feel I am contributing to HCL/ICC,s mission ........................... 1 ........... 2 ............ 3 ........... 4 ............5 I have the materials and equipment I need to do my job well ... 1 ........... 2 ............ 3 ........... 4 ............5

7. Recognition and Rewards (Please circle one number for each statement)

If I do good work I can count on making more money ........ 1 ........... 2 ............ 3 ........... 4 ............5 If I do good work I can count on being promoted...................... 1 ........... 2 ............ 3 ........... 4 ............5 I feel I am valued at HCL/ICC .................................................. 1 ........... 2 ............ 3 ........... 4 ............5 HCL/ICC gives enough recognition for work that's well done ... 1 ........... 2 ............ 3 ........... 4 ............5

pg. 143

My salary is fair for my responsibilities ..................................... 1 ........... 2 ............ 3 ........... 4 ............5 8. Teamwork and Cooperation (Please circle one number for each statement)

I feel part of a team working toward a shared goal ................... 1 ........... 2 ............ 3 ........... 4 ............5 Politics at this company are kept to a minimum ..................... 1 ........... 2 ............ 3 ........... 4 ............5 9. Working Conditions (Please circle one number for each statement) I believe my job is secure ................................................... 1 ........... 2 ............ 3 ........... 4 ............5 My physical working conditions are good ................................. 1 ........... 2 ............ 3 ........... 4 ............5 Deadlines at HCL/ICC are realistic........................................... 1 ........... 2 ............ 3 ........... 4 ............5 My workload is reasonable....................................................... 1 ........... 2 ............ 3 ........... 4 ............5 I can keep a reasonable balance between work and personal life....................................................................... 1 ........... 2 ............ 3 ........... 4 ............5 10. Your Immediate Supervisor (Please circle one number for each statement)

My supervisor treats me fairly............................................. 1 ........... 2 ............ 3 ........... 4 ............5 My supervisor treats me with respect ....................................... 1 ........... 2 ............ 3 ........... 4 ............5 My supervisor handles my work-related issues satisfactorily.... 1 ........... 2 ............ 3 ........... 4 ............5 My supervisor asks me for my input to help make decisions .... 1 ........... 2 ............ 3 ........... 4 ............5 My supervisor is an effective manager ..................................... 1 ........... 2 ............ 3 ........... 4 ............5

11. HCL/ICC 's Training Program (Please circle one number for each statement) HCL/ICC provided as much initial training as I needed ............ 1 ........... 2 ............ 3 ........... 4 ............5 HCL/ICC provides as much ongoing training as I need ............ 1 ........... 2 ............ 3 ........... 4 ............5 HCL/ICC provides all the information reuired in the training as I needed...1 ..2.3..4.5 12. Benefits (Please circle one number for each statement)

Overall, I'm satisfied with HCL's benefits package ................... 1 ........... 2 ............ 3 ........... 4 ............5

Specifically, I'm satisfied with the: Amount of vacation .................................................................. 1 ........... 2 ............ 3 ........... 4 ............5 Sick leave policy ...................................................................... 1 ........... 2 ............ 3 ........... 4 ............5

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Amount of health care paid for ................................................. 1 ........... 2 ............ 3 ........... 4 ............5 Retirement benefits .................................................................. 1 ........... 2 ............ 3 ........... 4 ............5 Allowances .............................................................................. 1 ........... 2 ............ 3 ........... 4 ............5 Grievance policy 12 ........... 3 ............ 4 ........... 5 Pay scale ................................................................................ 1 ........... 2 ............ 3 ........... 4 ............5 Incentives ................................................................................ 1 ........... 2 ............ 3 ........... 4 ............5 Increments ............................................................................... 1 ........... 2 ............ 3 ........... 4 ............5 Working Environment............................................................... 1 ........... 2 ............ 3 ........... 4 ............5 What, if any, changes would you like made to HCL/ICC 's benefits package?

13. How long do you plan to continue your career with HCL/ICC? Less than a year One to two years Two to five years More than five years Don't Know

14. Would you recommend employment at HCL/ICC to a friend? Definitely not Probably not Maybe Probably would Definitely would

15. What can HCL/ICC do to increase your satisfaction as an employee? __________________________________________________________________________ __________________________ __________________________________________________________________________ __________________________ The following questions are for analytic purposes only. They will not be used to try to identify any individual. However, if you feel uncomfortable about answering any of them do not do so. Whether or not you leave any questions blank, please return your questionnaire.

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16. How long have you worked for HCL/ICC NAME}? Less than one year ................................. One year to less than two years ............. Two years to less than five years ........... Five years to less than ten years ............ Ten years or more ..................................

20. What is your total before-tax annual income from this job, including overtime and bonuses? Less than $20,000 ................................. $20,000 to less than $30,000 ................. $30,000 to less than $50,000 ................. $50,000 to less than $75,000 ................. $75,000 or more .................................... 21. In which department do you work? Time Office ............................................ Safety .................................................... HR(works) .............................................. HR(admin.) ............................................ Plants .................................................... Research and development ...................

17. What is your age? Under 21 ................................................ 21 to 34 .................................................. 35 to 44 .................................................. 45 to 54 .................................................. 55 or older .............................................. 18. What is your sex? Male ....................................................... Female ................................................... 19.Which of the following best describes your role in the organization? First-level supervisor .............................. Manager/supervisor higher than first level (including senior management positions) ............................................................... Not a manager or supervisor ..................

Trade Union Name of the trade Union in the Organization which bridges the gap in between the Company and the organization. 1. 2. 3. 4. 5. ICC Workers Union :Registered, recognized by HCL/ICC affiliated to AITUC. Moubhandar Mazdoor Union :Registered. Ghatshila Copper Mazdoor Sangh: Affiliated to BMS. Singbhoom Industrial Mazdoor Sangh: Registered, unrecognized-affiliated to CITU. Jharkhand Copper Mazdoor Union: registered, affiliated to JMM Note:- All India Trade Union Congress (AITUC) Indian National Trade Union Congress (INTUC) Bhartiya Mazdoor Sangh (BMS)

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