SUMMER TRAINING REPORT ON

HR POLICIES OF VOLKSWAGEN Undertaken at VOLKSWAGEN DEHRADUN

In Partial Fulfill ent !f "a#$el!r !f "u%ine%% Ad ini%trati!n At GRAPHI& ERA UNIVERSIT' DEHRADUN

Su( itted t!) MR* PANKA+ AGGARWAL Su( itted ",) PANKA+ KUMAI

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Prefa#e
We can not achieve anything worthwhile in any field of knowledge solely on the basis of theoretical knowledge from books to order to achieve practical, positive and concrete results, the classroom learning needs to be effectively wedded to the reality of the situation outside the classroom. Project work is conducted as an integral part of a management course. It provides an opportunity to apply the theoretical aspect in practical. It gives an excellent opportunity to a student to apply his ability, capability, interest, knowledge, brief reasoning and mantle by giving a solution to the assigned problem, which reflects his caliber. oday, each and every organi!ation wants efficient and effective work force. hey want their employees to be sincere, involved in the work and attached to the organi!ation that is why they want committed people. herefore, there is need to study what exactly commitment

means" #ow people view it" What are the variables related" $o keeping in the mind above mentioned scenario, I decided to do a project on %#& Policies in automobile Industry'. (mployees are the backbone of any organi!ation. When they join an organi!ation, they bring with them a set of needs, desires and past experience that combines to form job expectation. )ob satisfaction expresses the amount of agreement between one*s emerging expectation and re+uirements that the job provides. $o it is very necessary to know about the #& policies of the organi!ation to achieve the job satisfaction level of the employees. ,ased on the findings I have compiled this report.

55

&ONTENTS
Page no. &$a-ter. INTRODU&TION TO AUTOMO"ILE INDUSTR' I. &/01$ I/. / 2/34$W56(. 6&/1P #I$ /&8 /9 2/34$W56(. 2/34$W56(. I. I.0I5 7 :; <=

&$a-ter / HR P!li#ie% !f VOKSWAGEN &$a-ter 0 RESEAR&H METHODOLOG' ?hapter > DATA ANAL'SIS &(?/@@(.05 I/. A ?/.?31$I/. 3I@I 5 I/.$ ,I,3I/6&5P#8 5-7 =B =: >7 ;:

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&HAPTER .

INTRODU&TION OF AUTOMO"ILE INDUSTR'

he automobile industry has changed the way people live and work. he earliest of modern cars was manufactured in the year :C75. $hortly the first appearance of the car followed in India. 5s the century turned, three cars were imported in @umbai DIndiaE. Within decade there were total of :B<5 cars in the city. he dawn of automobile actually goes back to >BBB years when the first wheel was used for transportation in India. In the beginning of :5th century, Portuguese arrived in ?hina and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. ,y :-BBs small steamFpowered engine models was developed, but it took another century before a fullFsi!ed engineFpowered vehicle was created. ,rothers ?harles and 9rank 0uryea introduced the actual horseless carriage in the year :C7;. It was the first internalFcombustion automobile car of 5merica, and it was followed by #enry 9ord*s first experimental car that same year. /ne of the highestFrated early luxury automobiles was the :7B7 &ollsF&oyce $ilver 6host that featured a +uiet -Fcylinder engine, leather interior, folding windscreens and hood, and an aluminum body. ?hauffeurs usually drove it and emphasis was on comfort and style rather than speed. 0uring the :7<Bs, the cars exhibited design refinements such as balloon tires, pressedF5utomobile wheels, and fourFwheel brakes. 6raham Paige 0? Phaeton of :7<7 featured an CFcylinder engine and an aluminum body. he :7;= Pontiac 0e 3uxe sedan had roomy interior and rearFhinged back door that suited more to the needs of families. In :7;Bs, vehicles were less boxy and more streamlined than their predecessor was. he :7>Bs saw features like automatic transmission, sealedFbeam headlights, and tubeless tires. he year :75= brought powerful highFperformance cars such as @ercedesF,en! ;BB$3.

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It was built on compact and styli!ed lines, and was capable of <;B kmph D:>> mphE. his was the Indian automobile history, and today modern cars are generally light, aerodynamically shaped, and compact. Fa#t% 1 Fi2ure% he automobile industry in India is on an investment overdrive. ,e it passenger car or twoF wheeler manufacturers, commercial vehicle makers or threeFwheeler companies F everyone appears to be in a scramble to hike production capacities. he country is expected to witness over &s ;B,BBBcrore of investment by <B:B. #yundai will also be unmasking the 2erna and a brand new diesel car. 6eneral 5utomobile s will be launching a mini and may be a compact car. @ost of the companies have made their intentions clear. @aruti 1dyog has set up the second car plant with a manufacturing capacity of <.5lakh units per annum for an investment of &s -,5BB ?rore D&s ;,<BB ?rore for diesel engines and &s <,=:C ?rore for the car plant itselfE. #yundai and ata 5utomobile s have announced plans for investing a similar amount over the next ; years. #yundai will bring in more than &s ;,CBB ?rore to India. ata 5utomobile s will be investing &s <,BBB ?rore in its small car project. 6eneral 5utomobile s will be investing &s :BB ?rore, 9ord about &s ;5B ?rore and oyota announced modest expansion plans even as #onda $iel has earmarked &s ;,BBB?rore over the next decade for India F a si!eable chunk of this should come by <B:B since the company is also looking to enter the lucrative small car segment. . alking about the commercial vehicle segment, 5shok 3eyland and ata 5utomobile s have each announced well over &s :,BBB ?rore of investment. @ahindra A @ahindra*s joint venture with International rucks is expected to see an infusion of at least &s 5BB ?rore. Industry performance in <BBCFB7 he Indian automotive market managed to stand up to the vagaries of the economic meltdown to show slightly growth during fiscal <BBCFB7. /verall vehicle sales at 7=.<;lakh grew B.=: per cent from 7-.5>lakh units in <BB=FBC. When major automotive markets reported a ;BF>B per cent decline, only a handful of countries managed to show growth. 5 few months ago, India was looking at negative growth but has turned around. It is actually better than expected.

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Passenger vehicle sales at :5.5:lakh registered flat growth while commercial vehicle sales showed a <: per cent drop. SIAM has a positive outlook for the current financial year. While it foresees a =FC per cent growth for the commercial vehicle segment, the industry body predicts a ;F5 per cent growth for passenger vehicles he passenger vehicle market has weathered the downturn largely due to market leader @aruti $u!uki which holds >C per cent of the market. he compact car giant clocked =.<<lakh units for <BBCFB7. ?losest rival #yundai 5utomobile India sold <.>>lakh cars, a growth of :; per cent. @ost premium carmakers saw volumes shrink last fiscal. oyota 4irloskar 5utomobile *s numbers fell :5 per cent to >-,C7< units while 9ord India*s sales were down := per cent to <=,7=- units. #onda $iel ?ars India also saw a := per cent drop at 5<,><B units while 6eneral 5utomobile s India was down C per cent to -:,5<- units. 5mong commercial vehicle makers, all major players saw substantial fall in volumes. @arket leader ata 5utomobile s with a -B per cent plus share, showed << per cent drop in numbers at <.;> lakh units while 5shok 3eyland showed ;= per cent drop at >=,-;<. (ither*s sales volume fell ;= per cent at :=,;>: units and 9orce 5utomobile s was down <C per cent at =,C:7 units. % he freight movement is unlikely to improve this fiscal which will impact truck sales.

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INTRODU&TION TO VOLKSWAGEN GROUP

T,-e) Head3uarter%) Indu%tr,) Pr!du#t%) Re4enue) O-eratin2 in#! e) Pr!fit) E -l!,ee%)

Public ?ompany 6ermany 5utomotive ?ars, rucks G::;.C billion D<BBCE G-.-: billion D<BBCE G>.-C billion D<BBCE ;-7,7<CD<BBCE Ve$i#le (rand #! -anie% 5udi ,entley automobile s ltd. ,ugatti automobile 3amborghini $eat $koda auto $cania 2olkswagen passenger car 2olkswagen commercials vehicles

Su(%idiarie%)

55

In Ger an5 6V!lk%7 -r!n!un#ed a% 8f!lk%95 ean% 6&ar7* Hen#e)

ean% -e!-le and 6Wa2en7

V!lk%:a2en

ean% ;-e!-le<% #ar; in Ger an5 in :$i#$ it i% -r!n!un#ed =flk%4a>n?*

Its current tagline or slogan is 0as 5uto Din (nglish he ?arE.

Its previous 6erman tagline was 5us 3iebe !um 5utomobil, which translates toH Out !f L!4e f!r t$e &ar, or, F!r L!4e !f t$e Aut! !(ile, as translated by 2W in other languages.

55

Hi%t!r, !f V!lk%:a2en
Ad!lf Hitler had a keen interest in cars even though $e did n!t like t! dri4e . In :7;;, shortly after taking over as leader of 6ermany, he teamed up with Ferdinand P!r%#$e to make changes to PorscheIs original :7;: design to make it more suited for the working man. Han% Led:inka discussed his ideas with Ferdinand P!r%#$e, who used many atra design features in the :7;C J4d9FWagenJ, later known as the 2W 4KferLor 2olkswagen ,eetle. When ?hrysler brought out the :7;> 0e$oto 5irflow coupe, its design enabled Mr* P!r%#$e to finali!e his design of the ,eetle. /n << )une :7;>, Dr* Ferdinand P!r%#$e agreed to create the ;Pe!-le<% &ar; for Hitler<% !t$er. hese

5fter some time, they planned to change some features regarding various aspects.

changes included better fuel efficiency, reliability, easeFofFuse, and economically efficient repairs and parts. he intention was that ordinary (uropeans would buy the car by means of a savings scheme 8;Sa4e fi4e Mark% a :eek5 if ,!u :ant t! dri4e ,!ur !:n #ar;9 , which around ;;-,BBB people eventually paid into. he 2W car was just one of many 4d9 he prefix ;V!lk%; programmes which included things such as tours and outings.

8;Pe!-le<%;9 was not just applied to cars, but also to other products in (uropeM the J2olksempfKngerJ radio receiver for instance. /n <C @ay :7;=, the Ge%ell%#$aft @ur V!r(ereitun2 de% Deut%#$en V!lk%:a2en% was established by the Deut%#$e Ar(eit%fr!nt. It was later renamed ;V!lk%:a2en:erk; on :- $eptember :7;C. 2W ype C<(

55

Er:in K! enda5 the longstanding 5uto 1nion chief designer, developed the car body of the prototype, which was recogni!ably t$e "eetle we know today. It was one of the first to be evolved with the aid of a wind tunnelM unlike the ?hrysler 5irflow, it would be a success.

V!lk%:a2en Gr!u- !:n% nine a#ti4e aut! !ti4e #! -anie%)

Audi

77.55N ownershipM the 5udi mar+ue is the sole active brand of the

former 5uto 1nion, bought from 0aimlerF,en! on ;B 0ecember :7->.

Aut! !(ili La (!r2$ini)5 :BBN ownership by 5udi 56M company was

bought in )une :77C.

"entle, Aut! !(ile % Li ited5) :BBN ownership by 2olkswagen 56M the

company Dat the time known as &ollsF&oyce A ,entley 5utomobile s 3td.E was bought on <C )uly :77C from 2ickers, but did not include the I&ollsF&oyceI brand name. he

55

&ollsF&oyce mar+uee was subse+uently restarted by ,@W who had licensed the brand from &ollsF&oyce plc.

"u2atti Aut! !(ile% ) :BBN ownership via the 2olkswagen 9rance subsidiary
of 2W56, ,ugatti 5utomobiles $5$ was created after 2olkswagen purchased the right to the ,ugatti mar+ue.

SEAT5 )A Initially cooperation agreement with 5udi 56, 5:N D:7C-E and :BBN
ownership by the 2W 6roup since :77B, and was the first foreign subsidiary in the 2W 6roup.

Bk!da Aut!5)A :BBN ownership since :777.

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V!lk%:a2en Pa%%en2er &ar%5)A :BBN ownership.

V!lk%:a2en

&!

er#ial

Ve$i#le%

D2W?2E

or

I2olkswagen

.ut!fahr!eugeI D2W.E 8Ger an9 L :BBN ownershipM started operations as an independent entity in :775. 2W?2O2W. is in charge of all commercial vehicle developments within the 6roup and has control over $cania and is a shareholder in @5. 56.

$cania 5,,HF

=B.7>N of voting rights as at <= 9ebruary <BB7 .

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&urrent V!lk%:a2en

!del%

(urope?addy 3ife (os 9ox 6olf @k6olf Plus 6olf 2ariant )etta @k5 @ultivan .ew ,eetle .ew ,eetle ?onvertible Passat @kPassat ?? Phaeton Polo @k>9 $cirocco $haran ouran iguan ouareg

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V!lk%:a2en in India

&ecently 2olkswagen paved the way for sustainable market activities in India. With the investment agreement signed at the end of <BB- the brand sets a new course that unites two success stories P 2olkswagen and India. 2olkswagen 56 is to build a new production plant in Pune in the Indian state of @aharashtra. With investment totaling some >:B million euros, a full production plant with a press shop, body shop, paint shop and assembly lines is to be built on the <;B hectare site in the ?hakan industrial park near Pune. he 6erman brand and (urope*s largest automotive manufacturer will be entering the Indian market to meet the rapidly growing demand for mobility. 2olkswagen will be developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian market offering all the features of a genuine 2olkswagen. 9or the first step the 2olkswagen brand will bring locally produced vehicles to the Indian market up from the third +uarter of <BB=. o accompany the growing supply of 2olkswagen Passenger ?ars, the 6roup has established a separate Indian sales company in <BB=, initially for 2olkswagen as well as for 5udi. %2olkswagen 6roup $ales India Private 3imited' registered in @umbai will distribute locally manufactured and imported vehicles in India. hus, 2olkswagen can bring one of itIs upperFpremium sedan as the first locally produced vehicle to the Indian market. In 5pril <BB-, 2olkswagen produced the :> millionth of its

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bestseller. he Passat has become the very image of automotive progress, representing what %@ade in 6ermany' means. his longFterm success is confirmed by numerous accolades from experts, journalists and customers who have put the car through its paces in recent months. his image is characteri!ed by vehicle si!e, drive technologies, safety features such as airbags, 5,$ and ($P in addition to +uality details including galvani!ed bodies. Imported vehicles such as the premium $ports 1tility 2ehicle ouareg will complement the range

HR POLI&IES
Policies are the very important aspect for any organi!ation. It is a tool that helps an organi!ation for better functioning. hese involve managing the relationship between the top management as well as lower management. he goal of #& Policies is to ensure that the firm is able to continue its operations. 5nd that it has sufficient to satisfy both maturing shortFterm debt and upcoming operational expenses. @anagement should use a combination of policies and techni+ues for the management of #& policies. hese policies aim at managing the work balance according to re+uirement. In #& Policies we can include the following.

&ecruitment $election Induction raining and development ?ompensation system

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3eave policy Welfare policy

Re#ruit ent) Placing the right person at right place at right time is called &ecruitment. &ecruitment policies at 2olkswagen 3td. a9 &ecruitment will normally be done against vacancies that occur due to the following reasonsH i. $eparationF &esignationO erminationO 0ismissalO &etirement death ii. (xpansionO &eorgani!ation of ?ompany*s business O operations bE 2acancies in all 0epartments will be filled after prior written approval of the @anaging 0irector. cE Prior written approval of the @anaging 0irector will also be re+uired even the vacancies are within the provision of the approved @anpower. dE 5ll vacancies to be filled from outside will be notified to the (mployment (xchange. eE 2acancies will be filled through PromotionO up gradationO relocation out of the existing employees. /r

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(mployment (xchange /r Placement 5genciesO campus Interviews /r 5dvertisements fE he following considerations will weigh in preparing shortlists of candidates in recruitment ?andidates within the /rgani!ation who could fill the vacancies on merits be considered on priority. 5ctive list of 5pplicants in the ?ompany will be scrutini!ed. should

Sele#ti!n) o choose the right candidate from a pool of applications is called $election. $election policy adopted by the company he following weightage will be given in the final evaluationHF 9actors Weightage

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Qualifications &elevance of past experience Interview a. he selected candidates will be notified promptly. b. ?andidates not selected will be sent regret letters.

<5N <5N 5BN

c. ?andidates who were very poor will be informed regretting the company*s inability to find an opening appropriate to their capabilities. d. ?andidates who were very good but not suitable for the position for which interviewed will be informed that the selection committee found them good but not suitable for the post for which they were considered and that their application is being kept on the active file and %will be in touch should a suitable opening exist in future.' 5ppointment 3etters 5ll candidates found suitable for appointment shall be issued 3etters of Intent D(mployment /ffersE. 5ppointment 3etters shall be issued under the signature of 5uthorities as underHF

?5 (6/&8 Workmen $taff (xecutivesO @anager /fficers

51 #/&IR(0 $I6.5 /&I($ 9actory @anagerO 6eneral @anager (xecutive 0irectorO 6eneral @anager @anaging 0irectorO (xecutive 0irectorO6eneral @anager (xecutive 0irectorsO 6eneral manager

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9ollowing testimonials and documents must be on the candidate*s file before issuing the 5ppointment 3etterH a. @edical 9itness ?ertificate from ?ompany*s 0octor. b. 5uthentic proof indicating the 0ate of ,irth D$chool 3eaving ?ertificateE. c. ?opies of ?ertificates of (ducational Qualifications. d. ?opies of ?ertificates of experience from previous employers. e. ?opy of relieving ?ertificate from the immediate past employer. f. ?ompany*s 5pplication 9orm duly filled in. g. hree passports si!ed colours photographs. h. 3ast ($I @embership .o. wherever applicable. i. 3ast Provident 9und 5ccount .o. wherever applicable. j. $alaryO Income ax ?ertificate from the last employerDsE along with P5. .o. k. 5ntecedent 2erification from the &efereesO past (mployers indicated by the candidate in hisO her 5pplication 9orm. 5ppointment 3etters will be prepared on a standard format designed by the #& 0epartment. 0ocuments and forms to be filled by the employee at the time of joining. a. 0eclarationO.omination form under the (mployee*s P.9 5.0 @iscellaneous Provisions 5ct, :75<. b. 0eclaration 9orm under (mployees $tate Insurance $cheme. c. .omination form under Payment of 6ratuity 5ct, :7=<.

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d. 0eclaration of dependant family members for notification to Insurance ?ompany 9or coverage under @edF claim. Probation 5ll employees are initially kept on probation for a period of six months, which may be extended for a further period of three months, at the sole discretion of the @anagement. otal period of probation shall, in no case, extend beyond one year. ?onfirmation /n receiving satisfactory reports on progress during probation period,#& 0epartment will obtain necessary approvals and issue letter of confirmation to the probationer on expiry of probation period. &! -en%ati!n P!li#,) /bjectiveHF o provide a uniform, stable and reasonable competitive compensation to all the employees of the company. ?ompensationF 9or $taff, /fficers and (xecutivesHF ?ompany policyM ?ompensation package for above category of employees comprises of ,asic $alary and allowances. Procedure

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9or $taff and /fficers, there is a well P defined guiding scale. a. ?omputation of salariesO wages for WorkersO staff A /fficers (xecutivesO @anagers is done by the #& 0epartment b. $tatutory obligations like taxes, provident 9und. ($I etc. and other deductions as permissible and payment thereof to the respective authorities is organi!ed by 5ccounts 0epartment. c. 5nnual revision of ,asic salary for the all the employees will be undertaken as per performance 5ppraisal policy of the company. d. he company has made arrangement to open individual*s salary 5ccount in I.6 28$85 ,ank where they have been given 5 @ ?ards A their 5 @ counter is in 9actory premises.

#ouse &ent 5llowanceHF 5ll executives are entitled to #ouse &ent 5llowance at the rate of 5BN of their basic salary /fficers A $taff are paid #ouse &ent 5llowance at the rate of their basic salary. /fficial 0uty ?onveyanceHF a. 5ll the (xecutivesO /fficersO $taff using their own vehicle for official work take claim for reimbursement of conveyance expenses along with authori!ed official duty slip at the rates given belowH iE $cooterO 5utomobile cycle S :.CB per kilometre

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iiE ?ar

S >.<B per kilometre

b. @ode of calculationF &ate T .o. /f kilometresU claimed amount c. &eimbursement of such ?onveyance expenses should preferably be claimed once in a month along with oll ax A Parking 9ee, if any. ?ar maintenanceHF 5ll company*s ?ars are maintained and serviced at authori!ed service stationsO workshops in different cities at ?ompany*s ?ost. It is the responsibility of the concerned (xecutive provided with ?ompany ?ar to maintain it in good, working and road worthy condition. Tele-$!ni# P!li#,) o communicate with their employees at any time company provides the facility of the telephone. ,y providing this facility company also giving a good communication atmosphere. $ome (xecutives have been provided with @obile Phones depending upon their assignment subject to monthly limits as per their respective 6rade can claim D@obile phoneE bills within the entitlement as given below in proscribed formatHF 6.@. and above $r. manager @anager &s. :5BBOF &s. :BBBOF &s. =5BOF

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/fficer /ther $taff $alary 5dvance HF

&s. 5BBOF &s. ;=5OF or ;<5OF as application

5ll employees are entitled S CBN interest free salary advance and it can be recovered in ;F> e+ual monthly instalments from their salaryO wage. $ocial $ecurity Policy HF 6ratuity he object of providing a gratuity scheme is to provide retirement benefit to employees who have rendered long and unblemished service to the employer and thereby contributed to the prosperity of the employer. 6ratuity as paid in lumpsum as per the Payment of 6ratuity 5ct, :7=: and rules framed there under.6ratuity is payable to an employee on his separation from the services of the company, after heO she has rendered continuous service for not less than five yearsHF a. /n his superannuationM or b. /n his retirement or resignationM or c. /n his death or disablement due to accident or disease Dfive years continuous service condition is not appliedE 9or the purpose of calculation of gratuity, the salary last drawn is taken into consideration.

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ProcedureH a. $alaryO Wages T otal days payable under gratuity T :O<-. b. #& 0epartment will calculate the 6ratuity amount and inform to 5ccounts 0epartment to release 6ratuity payment. c. 6ratuity must be paid within ;B days of the last working day of the separating employee subject to fulfillment of the re+uirements. Provident 9undHF 5ll the employees are covered under the Provident 9und $cheme, framed under the (mployees Provident 9und and miscellaneous Provisions 5ct, :75<, those who are getting salaryO wages D,asic V 0.5.E up to &s. -5BBOF p.m.

&ate of ?ontributionHF :<N of salaryO wage from employee and :<N employer DC.;;N pension account A ;.-=N (P9 accountE. 5ttribution S B.5N A admin charges Pf S :.:BN, (03I admin charge B.B:N of the whole bill D,asic V 05E. Lea4e P!li#,) he (xecutiveO officers and $taff of the ?ompany will be governed by the following of leave types

55

(arned 3eave a. 5ll the (xecutivesO officers and $taff shall be eligible (arned 3eave in accordance with the 9actories 5ct. b. he unveiled (3 standing to the credit of an employee as on ;: st 0ecember each year may be carried forward and accumulated upon a maximum for ;B day in case of (xecutives and officers A $taff, beyond which it will encase. (xtra /rdinary 3eave he ?ompany, at its own discretion, will grant extraFordinary leave with or without pay for prolonged sickness, studies, or for other justified reasons to the employees subject to the condition that heO she has exhausted all other leave to which heOshe is entitled.

$ick 3eave a. (mployees, who are in service of the company as on : st )anuary of the financial yearM shall be credited with a $3 of = days to be availed during the subse+uent twelve months on account of sickness. b. $3 for ; days or more should be supported by a @edical O fitness ?ertificate from a &egistered @edical Practitioner, who treatedO examined the employee. c. 5 leave application must be submitted immediately on falling sick with a medical ?ertificate, as it would not be entertained later without sufficient justification.

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d. $3 in excess of the accumulation limit will lapse and will not be the subject matter of any compensation. ?asual 3eave 5n employee who is in service of the company as on : st )anuary will be eligible to avail of ?3 for casual purposes for nor more than = days in a financial year. ?3 will not be allowed more than < days at a time. $hort 3eave 5ll the officers and staff are entitled to short leave of maximum two hours a day for personal work and subject to four hours in a month for which no salary is deducted. @aternity 3eave @aternity 3eave shall be as per @aternity ,enefits 5ct, :7-: as amended from time to time. 3eave &oster he #& 0epartmentO inFcharge shall also ensure that too many (xecutives, /fficers and $taff are not on leave at the same time in a particular month. 3eave &ulesF Workers a. hose workmen who have actually attended duty up to <>B working days in a calendar year will be allowed one day*s (arned leave fir every <B days of work performed by them during the calendar year.

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b. he operating rules regarding granting of privilege 3eave, wages for leave period etc. will be governed by the #oliday falling in between (arned 3eave days shall not be counted as 3eave days. c. Privilege 3eave will be encased on retirementO resignationO termination of the following basisHF ?asual 3eaveHF a. 5ll workmen shall be entitled to seven days ?asual 3eave with wages, during one calendar year from :st )anuary to ;:st 0ecember. b. he principal of earns and avails on pro rata basis shall apply. ?asual 3eave shall not be granted for more than two days at a time.

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ransfer 5nd $eparation ransferHF $ervices of all the employees are transferable. (mployees may be transferred from one 0epartment to another 0epartment from one establishment to another establishment. ransfers normally take place on account of following reasonsH a. 2acancies arising out of separation of existing employee b. /rgani!ation &estructuring c. &eorgani!ation of company*s business d. ?losure of an establishment $eparation 9rom $erviceHF 5n employee may cease to be in the employment of the company for any of the reasons like &esignation, ermination, &etirement, 0eath, 0ismissal etc. $eparation ProcedureHF 5fter issuing a formal communication to the separating employee, #& 0epartment O ?ompany $ecretary Will along with a copy of the said letter give following details to the 5ccounts 0epartment

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i. 3eave encashment amount payable of the separating employee ii. $alaryO Wages amount payable of the separating employee iii. iv. 5ny other recoveryO dues against separating employee 6ratuity 5pplication form from the separating employee

$ettlement of 5ccountsH /n separation due to any of reasons mentioned above, employee*s final accounts will be settled only after heO she has cleared hisO her dues with the company. 9ollowing are some of the critical formalities which must be complied within the period specified belowH :. 9ull and 9inal $ettlementH D$alary V (ncashmentE <. Payment of 6ratuityH within ;B days of date of leaving. #olidaysHF 5ll the employees of the company are entitled to .ational and 9estival #olidays, as per rules applicable in the /ctober each year, 9estival holidays are declared as per $tateO &egional customers and traditions .While .ational #olidays are three in number and are observed on <-th )anuary, :5 5ugust and <nd /ctober each year. $hiftsHF here are following types of shifts in the companyHF

$#I9

I@I.6

?5 (6/&8

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9irst $hift 6eneral

C.BB am to 5.BB p.m. 7.BBam to -.BB p.m.

9inishing 5ll

Trainin2 and De4el!- ent)A raining A 0evelopment of employees is an essential activity for any organi!ation to ensure its entrepreneurial superiority and excellence in its field. raining A 0evelopment focuses on ensuring the timely availability of +ualified and motivated employees with re+uisite skill sets to discharge their existing responsibilities, to take up higher responsibilities and to fill up the ?ompetency gaps by continuously developing their skills and attitudes. he company objectives on raining and 0evelopment areH a. o bridge the skill and competency gaps b. o create and maintain excellence oriented work environment c. o develop employees skills so as to successfully meet the challenges of competition d. &etraining of employees to impart new skills re+uired to fight obsolescence and to perform under changing business conditions. raining InputHF raining inputs are given as underHF

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a. raining for existing employees based on needs and re+uirements b. Induction training for new entrants c. raining for reFdesignatedO transferredO reFlocatedO promoted employees, keeping in view there new assignment, if re+uired d. 5ttitudeO management development PresentationsHF 5ll the employees, other then workers, who have attended external training programme, have to give two presentations on the training programme attended by the employees.9irst presentation is held within ten days and second within the fifth day of the month of training. Performance appraisalHF /bjectiveHF a. o provide a platform in which managers discuss the team member*s performance in their current role. b. Identify trainingOdevelopment needed in order to be effective in the current role. c. 0iscuss how the team member sees his role over the next one year. ;-B 0egree appraisal for executivesHF 5ll the (xecutives of the company are appraised O assessed through ;-B degree appraisal system.;-B degree appraisal has been brought to practice very recently. /nce ;-B degree

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appraisal is implemented successfully, it will further be introduced down the line of officers and so on. ProcedureHF DaE ?ompany*s business goals for the year are finali!ed by the @0 and are informed to all department head. DbE @anaging director circulates the company*s business goals to all so that all executives may prepare their personal objectives. DcE 5ll executives are re+uired to prepare the objective of their subordinates. DdE 5ll the executives are re+uired to fill up their self appraisal and ratings in the prescribed format provided by the #& department. DeE $elf appraisal and self ratings are re+uired to be submitted to the @0*s office. DfE (ach executive assessed by seniors, peers and subordinate. DgE 5ll promotions, financial increases and other rewards are on based on ;-B degree performance appraisal and achievements of agreed and finali!ed goals.

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?#5P (& ; RESEAR&H METHODOLOG'

RESEAR&H METHODOLOG'
&esearch can be defined as a careful investigation or in+uiry especially through search for new facts in any branch of knowledge. &esearch is, thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. $election of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantages and disadvantages. (fficient design is that which ensure that the relevant data are collected accurately. he researcher has to think about what procedure and techni+ues should be adopted in the study. #e should arrive at the final choice by seeing that the methodology chosen for project is indeed the beast one, when compared with others

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&esearch ProcessH FFFF ,efore embarking on the details of research methodology and techni+ues, it seems appropriate to present a brief overview of the research process. &esearch process consists of series of actions or steps necessary to effectively carry out research and the desired se+uencing of these steps. he se+uence is as followsA

Define Research m

Review concept and theories

Formulate Hypothesis

Design research (sample size)

Collection of data

Analysis data 9eed back Interpret and report 55

uggestion and recommendation he term W&esearch @ethodology* indicates an exhaustive and searching investigating into some accepted principles and conclusions, so as to bring into light some new and novel facts . he first step towards any research is to identify the problem and look at it objectively. /ne problem to be studied is decided, the steps to be finali!ed as followsHF he $ample is to be surveyed as to get the reliable result. @ethods to be used for collecting re+uired information. Interpretation of data to get the re+uired result through an analysis. Provide the necessary recommendations and suggestions.

he methodology is based on the extensive experience in +ualitative and +uantitative interview methods with both workers and factory managers . he study solicits and examines #& policies and offers insight into the ethical and business perspective of the issue through a survey for its analysis . he study relied on trained interviews using a structured interview to gather a broad range of information regarding the #& policies prevailing in the organi!ation . he study emphasi!es on both engineers and senior engineers interviews conducted at )$3 Plant employees . Interviews were conducted and the Questionnaires were filled between <Bth )une <BB7 to 5 th )uly <BB7. 5ll the (ngineers were interviewed with convenience from the available list from the different departments. /nsite interviews were also conducted at random for further clear

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picture prevailing in the organi!ation. he aggregate result of the interviews presents a ?lear picture of the #& policies in the /rgani!ation.

Sa -le %i@e and te#$ni3ue%

Sa -le de%i2n) 5 sample design is a definite plan for obtaining a sample from a given population. Uni4er%eH 1niverse refers to the entire population taken understudy. #ere, the universe consists of 2olkswagen company in 5utomobile Industry. Si@e !f %a -le) his refers to the number of items to be selected from the universe to constitute a sample. In this study, the sample si!e is fifty. Sa -lin2 Pr!#edure)

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In sampling procedure the decision regarding techni+ue to be used in selecting the items for the sample is taken. #ere the techni+ue used is convenient sampling A area sampling.

Data &!lle#ti!n

0ata is of two types P Primary data A $econdary data. Pri ar, data he primary data are those, which are collected afresh and for the first time and it is original and correct. Primary data are collected with the help of +uestionnaire A personal interviews and discussions. /ut the various tools, the techni+ue adopted here is one of the most practical and result oriented techni+ue, popularly known as Questionnaire echni+ue. In a structured +uestionnaire, +uestions are definite, concrete and preFordained with additional +uestions limited to those that a necessary to clarify incomplete or inade+uate answers for eliciting a more detailed response. In the +uestionnaire, the +uestions are presented with exactly the same wording and in same order to all respondents. he reason for standardi!ation is to ensure that all the respondents reply to the same set of +uestions.

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Se#!ndar, Data $econdary data is that data which someone else has already collected and which have already been passed through the statistical process. #ere, secondary data is collected from journals, maga!ines, annual reports and publications.

0ata 5nalysisH 5fter collecting the data it has to be processed and analy!ed. he term analysis refers to the computation of certain measure along with searching for patterns of relationship that exist among data groups. his study involves percentage and appropriate analytical tools. 0ata InterpretationH Interpretation refers to the task of drawing inferences from the collected facts after at analytical study.

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&HAPTER C DATA ANAL'SIS

Identifi#ati!n !f te#$ni3ue% !f re#ruit ent 1 %ele#ti!n and trainin2 1 de4el!- ent Due%ti!n ) A##!rdin2 t! ,!u :$at i% t$e !%t i -!rtant fa#t!r f!r %ele#ti!n -!li#,E

Qualification &esponse percentage ;BO5B -BN

Past experience :;O5B <-N

Interview =O5B :>N

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percentage &!" %!" $!" #!" !" 'ualificatio n (ast e)perience Interview

percentage

Inter-retati!n)A 5ccording to most of the employees +ualification is the most important factor in selection process.

Due%ti!n ) W$i#$

et$!d i% ad!-ted (, t$e #! -an, in trainin2 -!li#,E

/n the job training &esponse Percentage ;BO5B -BN

Workshops :BO5B <BN

$eminars :BO5B <BN

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(ercentage &!" %!" $!" #!" !" *n the +o, -or.shops training eminars (ercentage

Inter-retati!n)A raining is given during the job session.

Due%ti!n ) W$i#$ re#ruit ent -!li#, i% ad!-ted (, t$e #! -an,E

/ptions &esponse Percentage

/nFline :5O5B ;BN

advertisement <BO5B >BN

Institutions :5O5B ;BN

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(ercentage 1!" $!" 0!" #!" /!" !" / # 0 (ercentage

Inter-retati!n)A he organi!ation mainly gives preference to advertisement.

E -l!,er attitude t!:ard% t$e #! -en%ati!n %,%te

1 :elfare -!li#,

Due%ti!n ) W$i#$ t,-e !f #! -en%ati!n i% 2i4en t! ,!u (, t$e #! -an,E

#oliday package &esponse =O5B

,onus ;BO5B

/thers :;O5B

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Percentage

:>N

-BN

<-N

(ercentage &!" %!" $!" #!" !" Holiday pac.age 2onus *thers (ercentage

Inter-retati!n)A #ere we can interpret that the company mostly use to give bonus to its employees as a part of the compensation.

Due%ti!n ) W$at t,-e !f #$an2e% ,!u :ant in Welfare -!li#,E

/ptions &esponse Percentage

?anteen :;O5B <BN

Insurance <:O5B >5N

(ducation :-O5B ;5N

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(ercentage 1!" $!" 0!" #!" /!" !" Canteen Insurance 3ducation (ercentage

Inter-retati!n)A @ost of the employees want insurance policy.

Re-utati!n !f t$e fir

Due%ti!n ) W$i#$ t,-e !f %!#ial %e#urit, ,!u :ant fr!

t$e #! -an,E

6ratuity &esponse <=O5B

Provident fund :BO5B

($I scheme :;O5B

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Percentage

5>N

<BN

<-N

(ercentage %!" 1!" $!" 0!" #!" /!" !" 4ratuity (rovident fund 3 I scheme

(ercentage

Inter-retati!n)A 6ratuity is paid to the employees time to time.

Due%ti!n ) D! ,!u t$ink ,!ur HR -!li#ie% $el-% in (uildin2 2!!d relati!n%$i- (et:een t!- le4el and l!:er le4el ana2e entE

8es .o ?ant say

$;>O5B 5O5B ::O5B

-CN :BN <<N

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&!" 5!" %!" 1!" $!" 0!" #!" /!" !" 6es 7o Cant say

eries/

Inter-retati!n)A 8es, #& policies help in building good relationship between top level and lower level management.

Due%ti!n ) W$at are t$e

aF!r i -a#t% !f HR -!li#ie%E

/ptions &esponse Percentage

Productivity <BO5B 5BN

&educe turnover :5O5B <5N

6ood relationship :5O5B <5N

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(ercentage %!" 1!" $!" 0!" #!" /!" !" (roductivit y Reduce turnover 4ood relationshi p

(ercentage

Inter-retati!n)A #& policies have major impact on the productivity.

Kn!:led2e !f

aF!r HR -!li#ie%

Due%ti!n ) W$i#$ a--rai%al %,%te

i% ad!-ted (, t$e #! -an,E

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@,/ &esponse Percentage :;O5B :5N

;-BX 5ppraisal <>O5B =BN

/thers :;O5B :5N

(ercentage &!" %!" $!" #!" !" 82* 0%!9 Appraisal *thers (ercentage

Inter-retati!n)A #ere we can conclude that company mostly uses the ;-BX 5ppraisal techni+ue for the performance appraisal of the employees. Due%ti!n ) Are ,!u %ati%fied :it$ t$e lea4e -!li#, !f t$e #! -an,E

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8es &esponse Percentage <;O5B >-N

no <BO5B >BN

.o comment =O5B :>N

(ercentage 1!" $!" 0!" #!" /!" !" yes no 7o comment

(ercentage

Inter-retati!n)A @ost of the employees are not satisfied with the leave policy, they demand more leave.

I -le entati!n !f -!li#ie%

Due%ti!n ) Are ,!u %ati%fied :it$ t$e -!li#ie% ad!-ted (, t$e #! -an,E

8es

$;>O5B

-CN

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.o ?ant say

5O5B ::O5B

:BN <<N

&!" 5!" %!" 1!" $!" 0!" #!" /!" !" 6es 7o Cant say

eries/

Inter-retati!n)A #ere we can conclude that the most of the employees are satisfied with the policies of the company..

Due%ti!n ) D!e% T!- le4el -!li#ie%E

2t* in#lude ,!ur re-re%entati4e at t$e ti e !f

akin2 HR

8es

no

.o comment

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&esponse Percentage

<;O5B >-N

<BO5B >BN

=O5B :>N

(ercentage 1!" $!" 0!" #!" /!" !" yes no 7o comment

(ercentage

Inter-retati!n)A @ost of the employees say that their representatives are included in making #& policies.

Due%ti!n ) H!: fre3uentl, ,!ur !r2ani@ati!n #$an2e t$e -!li#,E

/ptions

5fter govt. order

5fter - months

5nnually

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&esponse Percentage

:;O5B <5N

:5O5B ;BN

<<O5B >5N

(ercentage 1!" $!" 0!" #!" /!" !" After govt: order After % months Annually

(ercentage

Inter-retati!n)A he organisation mainly changes the policy annually.

&ON&LUSION 1 RE&OMMENDATION

&!n#lu%i!n 1 Re#!

endati!n%

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5fter having analy!ed the data, it was observed that practically there was recruitment and selection in the organi!ation. o be an effective tool, it has to be on the continuous basis. his is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. ,efore actually deciding drafting what should be the kind of recruitment and selection the following things should be taken care ofH :. he very concept of recruitment and selection should be standardi!ed through the organi!ation. 1nless this is done, it is accepted, be it how important to the organi!ation. <. o market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. his would help in percolating down the

concept to the advantage of all, which includes the top management as well as those below them. his means that the top management has to take a welcoming and

positive approach towards the change that is intended to be brought. ;. 9urther, at the time of confirmation also, the recruitment and selection form should not lead to fault of any information. Instead, detailed l of the employee*s work must be done P which must incorporates both the work related as well as the other attributes that are important for org. >. ime period for conducting the recruitment and selection should be revised, so that the the exercise becomes a continuous phenomenon. 5. ransparency into the system should be ensured through the discussion about the employee*s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.

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-. Performance appraisal conducted must be fair and very clear to the employees. 5 well communicated or discussion sort of performance appraisal should be conducted. =. @anagement must provide the opportunities for selfFdevelopment of employees. hey must feel proud working with the organi!ation. C. Promotions must be handled fairly and all employees must be informed about the openings within the organi!ation. 7. Permute use of work incentivesF profit sharing. :B. ?reative and innovativeFprovide employee with opportunities to use their there skills. ::. rain people and help them recogni!ing suggestion opportunities and suggestion. :<. It should be noted that the recruitment and selection form for each job position should be different as each job has different knowledge and skill re+uirements. here should not be a common recruitment and selection form for every job position in the organi!ation. making

Li itati!n% !f t$e Stud,

5 9ew limitations and constraints came in the way of conducting the present studyHF

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0ue to lack of time with authority, we could not get full information about the #& policies in the company.

We can*t visit to many companies in such a short time. 0ue to the lack of internet facility, we could not get the data of other companies. (mployees are not so much cooperative in giving the response of +uestionnaire. hough no effort was spared to make the study more accurate. $ample si!e selected may not be the true representative of the company, resulting in biased results.

his being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techni+ues in analy!ing and interpreting data may not be ruled out.

"I"LIOGRAPH'

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:. &esearch methodology P ?.&. kothari.

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