A detailed study done in

Submitted in partial fulfillment of the requirement for the award of the degree of Master of Management Studies (M.M.S.) under “University of Mumbai” Submitted by AMIT ASHOK WANI BATCH: 2008 – 2010 Under the guidance of Ms. PRIYADARSHANI PODDAR Prof. H.R.M. (INSTITUTE GUIDE) Mr. UMESH JADHAV MANAGER (SB – P & IR) (ORGANIZATION GUIDE)


Preface Abstract Acknowledgement Executive Summary Chapter – 1 Introduction to the Industry Chapter – 2 Introduction to the Company / Organization Chapter – 3 Introduction to the Topic Chapter – 4 Introduction to the Project Chapter – 5 Facts & Findings Chapter – 6 Analysis & Interpretation Chapter – 7 Conclusion & Suggestions Chapter – 8 Extra Information Collected During Project Duration 8.1 Recruitment & Selection 8.2 Training & Development 8.3 Quality Circles 8.4 Memorandum of Understanding (MoS) 8.5 Domestic / Departmental Inquiry 8.6 Compensation & Benefits 8.7 Personnel Record 8.8 Promotion Policies 8.9 Officer’s HR Department 8.10 A case on Calculation of Compensation Permanent Disablement due to Accident during Work Bibliography Annexure 109 113 114

I II III IV 1 6 20 22 26 50 62 65 66 71 74 81 82 92 100 101 104

University of Mumbai has a compulsory research project to be done during summer vacations. The Summer Internship Project (SIP) carries 100 marks and has to be done in any Industry of Choice and should be based on the Specialization Subject one is going to choose during his/her third semester. This is to give a practical firsthand experience of observing the work while learning and taking knowledge under experienced guides of the Current Industry standards followed on the field one is going to join after completing his/her Master in Management Studies (MMS). It was the above opportunity to do a Summer Project in a choice of Industry that motivated Researcher to study and make this black book explaining the findings during the research work done in Human Resource Department in Mazagon Dock Limited (MDL), Mumbai. This book explains & shows a practical scenario of Mazagon Dock Limited (MDL) and its Human Resource Department. Although, the research project was on “Health, Safety and Welfare as per the Factories Act 1948”, researcher has done study on almost all the functions of HR Department with respect to Workers & Officers and given a fair scenario of practical applications of the Syllabus of Human Resource Management of University of Mumbai. The information given in this book is collected through various Primary and Secondary Data Collection methods like Personal Interviews of Management Representatives of MDL, Own Observations by researcher and Questionnaires filled by Workers & Managers. Researcher would like to thank Industry Guides, Institute Guide and all those seen and unseen hands and heads, which have been direct or indirect help in the successful completion of the data collection and write-up of this book.

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Researcher has taken up a project of study on “Health, Safety and Welfare as per The Factories Act 1948”. In this study, a detailed work is done to establish a conclusion that the measures taken by the Organization “Mazagon Dock Limited” as given in The Factories Act 1948 are not only managed satisfactorily but also that the workers are satisfied by the efforts taken by the management. The basic objective behind the study was to learn the implementation of the Health, Safety and Welfare activities in a factory premises. Mazagon Dock Limited is one of the organizations which have a very good system and track record of managing such provisions effectively and efficiently. Other objective was to do a research to find out whether the employees are satisfied by the management’s efforts of implementing these provisions. The very logic behind providing Health, Safety and Welfare schemes (Other than what is stated in the Labour Law) is to create efficient, healthy, loyal and satisfied labor force for the organization. Therefore, the purpose of doing such a study is to prove, how an employee, due to various such activities, is continuously kept motivated and focused to do his duties with more faith and responsibilities because, his organization for which he is working, is taking care of all his basic needs through such activities. The various data collection methods used is “Observation Technique, Personal Interviews of Various Department Heads and Questionnaires filled from the workers, staff members and officers”. The conclusion was derived from various Data Analysis Tools like Graphs, Median, Probability Testing and own assumptions by observing things from researcher’s naked eye. Therefore, both Qualitative and Quantitative Techniques are used in this research.

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Researcher’s sincere thanks to Mr. A.B. Oval, DGM (SB - Training and Development) and Mr. Umesh Jadhav, Manager (SB – P & IR), who gave proper guidance and helped throughout this project. Researcher’s heartfelt gratitude to Mazagon Dock Limited in this project. Even a single line would not have been possible without their support. Researcher’s special thanks to Mr. Arvind Satam, Chief Manager (SB - HR & IR) and Mr. Sachin Kadam, Assistant Manager (SB - HR & IR) for giving the necessary support and encouragement for the successful completion of this project. Researcher would also like to thank Saraswati College of Engineering, Department of MMS, Kharghar, Navi Mumbai and the Institute Guides, Ms. Priyadarshani Poddar and Ms. Rohini Patil for giving the necessary guidance and support for the successful completion of this project. Researcher would also be grateful to all those seen and unseen hands and heads, which have been direct or indirect help in the successful completion of this project. Without the invaluable contribution and guidance of all the above mentioned people, organization and institution, this project would have never got a shape and emerge before all of you in the manner as it now appears.



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The Factories Act 1948 gives the provisions related to three basic types of issues which are Health, Safety and Welfare. These issues are so important and critical that the entire Industrial Relations (IR) related problems are created because of nonperformance of the system implemented by the organization with respect to this Act. Researcher has not only focused on the learning aspect of the implementation of this Act but has also carried out a research on whether the employees are satisfied with the implementation and management process. Therefore, below is the chapter-wise executive-summary of the entire study. The first chapter gives the Introduction to the Ship-Building industry in the World and in India. It also gives the information of the competitors of Mazagon Dock Limited and what is their position in today’s market scenario. There is a chart of labour cost involved in building a ship in which we can conclude that China has the lowest labour cost with India in the third position and the highest labour cost is in Singapore. The second chapter gives the Introduction of the Company “Mazagon Dock Limited”, its product portfolio, total no. of employees in the organization, Vision, Mission, and Quality Policies of the organization, its corporate governance initiatives and Organization Chart of the Organization. The third chapter gives the definition of the Term Health, Safety and Welfare in general terms. The forth chapter gives the details of the Research Methodology used. In this chapter, the details of Objective & Importance of the study, Hypotheses, Data Collection Techniques, Analysis and Interpretation Methods etc are mentioned. The fifth chapter gives the details of various Facts and Findings of the Study through observations, personal interview and questionnaires. In this chapter, researcher actually acted as a participative observer in various areas of the organization without the knowledge of other employees. Researcher took personal interview of the Department Heads to learn the procedure of implementation of the Act. At the end, researcher gave questionnaires to the employees of the organization for the purpose of deriving at a conclusion. The sixth chapter is the Analysis and Interpretation part which is done using techniques of Qualitative and Quantitative Analysis.

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The seventh chapter gives the conclusion of the study based on the Analysis and Interpretation in the previous chapters. The Eighth and Subsequent chapters give the details of other studies done during the course of actual study. This research includes Recruitment and Selection, Training and Development, Quality Circles, Memorandum of Settlement, Domestic / Departmental Inquiry, Compensation and Benefits, Personnel Record, Promotion Policies, Study of Officer’s HR Department, A Case on Compensation for Permanent Disablement due to Accident during Work. The Eighteenth and Last Chapter gives the details Suggestions which a researcher feel important to be implemented in the Organization of Study. These suggestions are arrived at through observations during the time of study during May and June. Bibliography is included with this project to give the details of third party sources used in this project. Annexure is also included with this project which includes all the attachments which researcher feels are important to be included with this project.

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Chapter -1 Introduction to Industry

What is Shipbuilding?
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Shipbuilding is the construction of ships. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history. Shipbuilding and ship repairs, both commercial and military, are referred to as the "naval sector". The construction of boats is a similar activity called boat building. The dismantling of ships is called ship breaking.

Archaeological evidence indicates that humans arrived on New Guinea at least 60,000 years ago, probably by sea from Southeast Asia during an ice age period when the sea was lower and distances between islands shorter (See History of Papua New Guinea). The ancestors of Australian Aborigines and New Guineans went across the Lombok Strait to Sahul by boat over 50,000 years ago.

4th millennium BCE
Evidence from ancient Egypt shows that the early Egyptians already knew how to assemble planks of wood into a ship hull as early as 3000 BC. The Archaeological Institute of America report that the oldest ships yet unearthed, a group of 14 discovered in Abydos, were constructed of wooden planks which were "sewn" together. Discovered by Egyptologist David O'Connor of New York University, woven straps were found to have been used to lash the planks together, and reeds or grass stuffed between the planks helped to seal the seams. Because the ships are all buried together and near a mortuary belonging to Pharaoh Khasekhemwy, originally they were all thought to have belonged to him, but one of the 14 ships dates to 3000 BC, and the associated pottery jars buried with the vessels also suggest earlier dating. The ship dating to 3000 BC was 75 feet long and is now thought to perhaps have belonged to an earlier pharaoh. According to professor O'Connor, the 5,000year-old ship may have even belonged to Pharaoh Aha.

19th century
Iron was gradually adopted in ship construction, initially in small areas needing greater strength, then throughout, although initially copying wooden construction. Isambard Brunel's Great Britain of 1843 was the first radical new design, built entirely of iron, using stringers for strength, inner and outer hulls, and bulkheads to form multiple watertight compartments. Despite her success, many yards only went so far to use composite construction, with wooden timbers laid over an iron frame (the Cutty Sark is so constructed). Steel supplanted wrought iron when it became readily available in the latter half of the 19th century. Wood continued to be favored for the decks, and is still the rule as deckcovering for modern cruise ships.


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The global shipbuilding industry is currently dominated by South Korea, which is by far the world's largest shipbuilding nation in terms of tonnage and number of vessels built, in spite of high labour cost, producing more ships than the entire world output combined in 2008. This is largely due to its highly advanced shipbuilding technology and high productivity and efficiency of its shipyards. The world's largest shipyard in Ulsan operated by Hyundai Heavy Industries is so efficient that a new $80 million vessel slips into the water every four working days. South Korea's "big three" shipbuilders, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, dominate global shipbuilding, with STX Shipbuilding, Hyundai Samho Heavy Industries, Hanjin Heavy Industries and Sungdong Shipbuilding & Marine Engineering also ranking among the top ten shipbuilders in the world. In 2007, STX Shipbuilding acquired Aker Yards, the largest shipbuilding group in Europe, renaming the company to STX Europe in 2008, further strengthening South Korea's dominant position in the industry. China is a fast emerging shipbuilder and poised to overtake South Korea in the distant future but is mainly producing low-cost basic vessels at the moment, while Japan lost its leading position in the industry to South Korea in 2004, and its market share has fallen sharply. The entire European countries' total market share has fallen to only a tenth of South Korea and the outputs of the United States and other countries have become negligible. Design work, also called naval architecture, may be conducted using a ship model basin. Modern ships, since roughly 1940, have been produced almost exclusively of welded steel. Early welded steel ships used steels with inadequate fracture toughness, which resulted in some ships suffering catastrophic brittle fracture structural cracks (see problems of the Liberty ship). Since roughly 1950, specialized steels such as ABS Steels with good properties for ship construction have been used. Although it is commonly accepted that modern steel has eliminated brittle fracture in ships, some controversy still exists. Modern shipbuilding makes considerable use of prefabricated sections; entire multi-deck segments of the hull or superstructure will be built elsewhere in the yard, transported to the building dock or slipway, and then lifted into place. This is known as 'block construction'. The most modern shipyards pre-install equipment, pipes, electrical cables, and any other components within the blocks, to minimize the effort needed to assemble or install components deep within the hull once it is welded together. Shipbuilding (which encompasses the shipyards, the marine equipment manufacturers and a large number of service and knowledge providers) is an important and strategic industry in a number of countries around the world. This importance stems from:

The large number of trade persons required directly by the shipyard and also by the supporting industries such as steel mills and engine manufacturers; and A nation's need to manufacture and repair its own Navy and vessels that support its primary industries.

India has around 32 shipbuilding yards belonging to the public and private sector. Major public sector yards include Mazgaon Dock, Cochin Shipyard, Hindustan Page 3 of 114

Shipyard, and Goa Shipyard, while large private shipyards include ABG Shipyard, Bharati Shipyard and Adani. The Indian shipbuilding business was traditionally dominated by inefficient PSU shipyards. Thanks to their high cost of manufacturing, poor delivery and quality standards, India could not capitalize on its low cost labour advantage. However, over the past few years, led by private shipbuilders, India has emerged as a key player in the offshore segment of shipbuilding.

How has the industry performed?
The Indian shipbuilding business has entered the growth trajectory with their orderbook witnessing a nine-fold increase in just four years. According to ‘i-maritime’, an Indian shipping consulting firm, the order-book of Indian shipyards has grown from Rs 15 bn in 2002 to Rs 137 bn in September 2006. Though India is an insignificant player in the global shipbuilding business, it has gained a strong foothold in the niche offshore segment. Led by private shipyards – ABG and Bharati – India has surpassed Norway in terms of order-book for OSVs (offshore supply vessels).

Offshore segment – Focus of Indian shipbuilders
Traditionally Singapore and Norway have been leaders in the offshore segment. However, over the past few years, India has emerged as one of the leading players in the OSV market, led by private shipyards. The success of the Indian Shipbuilding Industry has been due to availability of skilled labour at a lower cost. As can be seen in the table below, India compares favorably with other shipbuilding nations on the labour cost front. OSVs typically require higher degree of technological skill-set than conventional vessels like tankers, bulk carriers and container vessels. Though the cost of labour in China is lower than India, the focus of Chinese shipyards remains large conventional vessels. Moreover, large shipyards (in China) make it unfeasible to produce OSVs. Country Labour cost per worker (US$ per annum) China 729 Indonesia 1,008 India 1,192 Phillipines 2,450 Thailand 2,705 Malaysia 3,429 Korea 10,743 Singapore 21,317 Source: Ministry of Commerce & Industry, Govt. of India

Future outlook
Since the focus of Indian private shipyards is the offshore segment, their prospects primarily depend upon the exploration and production (E&P) spending by the oil companies. Worldwide, the E&P spending continues to remain strong, driven by Page 4 of 114

depleting oil reserves and high oil prices. Indian shipbuilders are also set to benefit from the huge replacement demand which is expected to come over the next few years. Globally, 73% of the Anchor Handling Tug Supply Vessel (AHTSV) fleet and 62% of the Platform Supply Vessel (PSV) fleet is more than twenty years old as majority of them were acquired during the oil boom witnessed in 1970s. Despite this fact, the current order book for offshore vessels (AHTS and PSV) forms only 10% of the current fleet, thereby indicating huge potential for Indian private shipyards.

Challenges ahead
As mentioned earlier, Indian shipyards have witnessed huge accretion in order-book over the past few years. Hence, timely execution and delivery would be the key for growth. Delayed and substandard deliveries can have a detrimental impact on the long-term prospects of the domestic industry as goodwill is built over a number of years. Substantial fall in crude oil price is another area of concern, since a significant slide in oil prices would lead to a cut in E&P spending by oil majors. As a result, the demand for offshore vessels will stand reduced.

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Chapter – 2 Introduction to the Organization


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Mazagon Dock Limited, Mumbai, an ISO 9001:2000 Company is one of the leading shipbuilding and offshore fabrication yards in India. The Yard was established in the 18th century, and over the 200 odd eventful years, has earned a reputation for quality work and established a tradition of skilled and resourceful service to the shipping world in general and the Indian Navy, Coast Guard & ONGC in particular. In its varied history, MDL passed through various ownerships like the P&O lines and the British India Steam Navigation Company. It was incorporated as a Public Limited Company in 1934. After its takeover by the Government in 1960, Mazagon Dock grew rapidly to become the premier war-shipbuilding yard in India, producing sophisticated warships for the Navy and offshore structures for the ONGC. It has grown from a single unit, small ship repair company, into a multi-unit and multi-product company, with significant rise in production, use of modern technology and sophistication of products. The company’s current portfolio of designs spans a wide range of products for both domestic and overseas clients.


SHIP-BUILDING MDL has constructed a variety of ships both for the defence and the commercial sector. The first modern warship to be built by the company was the Leander Class frigate “INS NILGIRI". Its design was obtained from the British Admiralty and the frigate Page 7 of 114

itself was built in collaboration with M/s. Vickers Ltd. and M/s. Yarrow (Shipbuilders) Ltd. of U.K. The NILGIRI was launched in October, 1968 and commissioned in 1972. During the next nine years Mazagon Dock built and delivered five more frigates in this class for the Indian Navy. Indian Naval Ships Nilgiri, Himgiri, Udaygiri, Dunagiri, Taragiri and Vindhyagiri formed the main thrust package of the Navy in the seventies and eighties. As the construction of the Leander series was nearing completion, the Navy evolved a design for a new generation frigate. Mazagon Dock was responsible for making all production drawings in respect of the new frigate. Unlike the Leanders, the new frigate was Indian in concept, design and execution. The ship was larger than the Leander frigate with about 25% more displacement, and could embark two large helicopters. This new class was christened as the "GODAVARI Class", and the first ship of the series “INS GODAVARI” was launched in May 1980 and commissioned in December 1983. INS GANGA and INS GOMATI followed in 1985 and 1988. Further construction of this class of warships was entrusted to GRSE, Kolkata, with lead yard services being provided by MDL. Subsequently, construction of the destroyer class Project-15 ships powered by gas turbines was undertaken. These 6700-ton mammoth destroyer class of warships were the biggest ships built in this part of the world. The first of the class, `INS DELHI' was launched in February 1991 and commissioned in November 1997; the second “INS MYSORE” was commissioned in 1999. The third and last ship in the series "INS MUMBAI" joined the Navy in January 2001. Mazagon Dock has also constructed two corvettes for the Navy. The Corvettes are smaller warships displacing about 1500 tonnes. The first of the series, “INS KHUKRI” was commissioned in August 1989 and the second, “INS KUTHAR” in June 1990. “INS KIRCH” a corvette launched at GRSE, was fitted out and completed at Mazagon Dock and commissioned in January 2001. Mazagon Dock has also fabricated fast and powerful Missile Boats for the Navy. Three missile boats INS VIBHUTI, INS VIPUL and INS NASHAK were commissioned into the Navy between 1991 and 1994. A fourth boat, "INS PRABAL" launched at the Shipyard in September 2000 was commissioned in March 2002. Presently, MDL is building three, new generation stealth warships for the Navy, named Project-17 frigates. The first ship in this class INS SHIVALIK was launched in April-2003 the second INS SATPURA in June 2004 and the third and last INS SAHYADRI was launched in May 2005. MDL has also begun construction of three ships, of the follow-on to the DELHI Class of destroyers. The first ship of this Class ‘INS KOLKATA’ was launched in March 2006. Besides warships for the Navy, Mazagon Dock has also constructed a series of Offshore Patrol Vessels for the Coast Guard. These vessels are specialised ships for Page 8 of 114

patrolling, policing, search and rescue operations in the Exclusive Economic Zone of the country. They are also provided with capabilities for pollution control and fire fighting and carry a helicopter on board. The design of these vessels was entirely evolved at Mazagon Dock. Seven Coast Guard Ships, INS VIKRAM, INS VIJAYA, INS VEERA, INS VARUNA, INS VAJRA, INS VIVEK and INS VIGRAHA, which today form the mainstay of the Coast Guard fleet, were built and delivered to the Indian Coast Guard between December 1983 and March 1990. Follow on vessels of this class have since been built at the Goa Shipyard under lead yard services from MDL. Mazagon Dock has also completed the construction of two series of Offshore Supply Vessels, comprising seven ships, for the ONGC. Construction of a new series of Border Out Posts for the BSF has recently been undertaken by MDL. The BOPs are floating police stations, each with four high-speed boats. Out of an order for 14 BOPs, MDL has fabricated and delivered nine so far. On the export front, Mazagon Dock has achieved another `first'. It is the only shipyard in India to have built a significant number of ships for foreign clients. Since 1974-75, the company has built and supplied, vessels to Singapore, the Iranian Navy, U.K., the Gulf and Mozambique. Recently, "Commandant Mortenol" a 1600 Cu M sand dredger was built for a French Company operating from Guadeloupe, an Island territory of France in Eastern West Indies. Presently MDL is building a specialised dredger for the Dredging Corporation of India. The company against global competition won the order. As the lead defence shipyard of India, MDL is committed to delivering Quality Ships, on time. Mazagon Dock has come a long way from being a small repair yard in the late 18th century to the country’s leading Defence Shipyard capable of meeting the requirements of the Indian Navy towards its warship building programmes including submarines. The current order book position makes MDL, one of the most loaded shipyards in the world.

Merchant Ships Trailing Suction Hopper Dredger, General Cargo Vessel, Multipurpose Support Vessel, Offshore Supply Vessel, Special Trade Passenger cum Cargo Vessel, 45t Bollard pull voith tug, BOP Vessel Navy Ships Page 9 of 114

Corvettes, Destroyer, Godavari Class Frigates, Nilgiri, Patrol Vessels, Missile Boat

INS Nilgiri

Leander Class Frigate

SHIP REPAIRS Mazagon Dock is fully geared to carry out major repairs to all type of vessels and handles a large portion of repairs carried out in the port of Mumbai. The Company's repair service is famous for the quality of its work and adherence to delivery schedules. Mazagon Dock is authorised to carry out repair in Mumbai Port Trust Premises (at dry docks, berths, outer quays and at - anchorage.) Voyage repair facilities have been developed at Nhava Yard near Jawaharlal Nehru Port Trust for quicker turnaround of ship. Both deck and machinery repair work are undertaken. Underwater repair can be carried out on all types of vessels upto 300 meters long (45,000 T). Scope of repair comprises of repairs to Hull, outfitting of living and service spaces, refurbishing and overhaul of main propulsion machinery and equipment, auxiliaries, stabiliser and steering gear, control systems, electric installation, fire fighting and life saving systems and equipment. The Company has also been implementing the concept of total shipcare comprising 'maintenance-refit-repair' on offshore patrol vessels and offshore supply vessels of the Coast Guard and ONGCL. Major repairs and modernisation of Naval Ships and SSK Submarines, and jack-up rigs are also being carried out.

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SUBMARINES Way back in 1984 Shrimati Indira Gandhi, then Prime Minister of India, unveiled a plaque and thereby was born the Submarine yard of MDL. In keeping with the existing system of designating the yards, the submarine yard was christened as East Yard. With its spacious, well ventilated and well-lit covered sworkshops, spanking new and modern CNC machines, self-sufficient service facilities and a young, dedicated Germany trained workforce, the yard soon became the cynosure of all eyes in rest of the company. Created with the express aim of building submarines, East Yard soon carved out a niche for itself through dedicated work, attention to quality and eagerness to adhere to schedules. The work culture inculcated in the East Yard personnel stood them in good stead when, on completion of the two SSK class submarines viz. INSM Shalki and Shankul, East Yard was assigned the responsibility of constructing one Type 1241 RE class of Missile Boat. Although this was to be built following Russian Norms, East Yard technocrats rose to the occasion and delivered a fine vessel that is still serving the nation with competence. Equipped with modern technology and manned by specially trained personnel, submarines are being constructed and refitted in the East Yard of Mazagon Dock Ltd., a unit set up with advanced state-of-the art machinery, required to achieve the exacting and stringent quality standards in submarine construction. A welding training school has been established to develop and maintain welding techniques and procedures at high standards and continuous updating of techniques. The East Yard boasts of facilities like a fully computerised drawing office and excellent quality control laboratories. Special purpose machines have been installed for pressure hull fabrication, stern tube boring, machining of penetrations and hatch covers, installation of precision high technology equipment like radars, sonars, periscopes, hoistable masts, Submarine Fire Control System (SFCS) and other command and control equipment including weapon launch systems. Submarine Repair & Modernisation Mazagon Dock has also undertaken the task of refitting and modernizing of SSK Class submarines of the Indian Navy, thus meeting a critical need of the country, indigenously. The covered dry dock of the submarine yard provides an ideal environment for repair of submarines. Mazagon Dock completed the first ever indigenous medium refit of the Type 209 submarine, Shishumar in the scheduled period of two years. The first medium refit-cum-modernisation project of another submarine of the same class, Shankush was also successfully comleted in 2005. Page 11 of 114

Mazagon Dock has also proved its expertise in carrying out repairs of submarines of Russian origin by successfully completing the short refit of Sindhurakshak. Products INS Shalki & Shakti Scorpene Submarine


Facilities for fabrication were established at Alcock, Mumbai and at Nhava Yard. MDL has the capability of undertaking construction work of well head platforms, water injection and process platforms, jack-up rigs, SBMs and other offshore structures. Repair and maintenance jobs on offshore rigs are also undertaken at Alcock, Jackets up to 80m. length and 2200 T. weight can be constructed. At Nhava, Jackets up to 80m. length and 2300 T. weight, Main Decks up to 550 T. weight and Helipads of 160 T. weight A welding training school develops and maintains welding techniques and procedures to acceptable standards and continuous updation of welding techniques transportation and installation of platforms. The company has the ability to vessel, one jacket launch barge and three cargo barges. The company has so far fabricated over 54 jackets, 42 wellhead topsides, three process platforms and two 300 M jack up rigs. It has a so carried out coating of 630 kms of pipes of which 200 kms have been of 36” diameter.

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Mazagaon Dock Limited is committed to continue as being the Leading Shipyard of the country engaged in building technologically intensive warships, submarines and heavy engineering structures conforming to international standards.

Mazagon Dock Limited is dedicated to ensure continued satisfaction of its customers by clearly articulating and understanding its commitments and fostering greater quality awareness amongst our workforce through continuous training. It shall comply with the requirements of ISO 9001:2008 standard and are committed to continually improving the effectiveness of its Quality Management System.

It shall continually upgrade its process performance for: Building of new ships/submarines/heavy engineering structures maintaining consistent quality to ensure customer satisfaction.  Repairing/Refitting/Modernization of Submarines/Heavy Structures as per the requirements of the customers. and

Engineering Page 13 of 114

 Achieving “Zero Accident Shipyard Status”.  Ensuring Human Resource Development through training.
 Achieving 100% passing rate during the final examinations of Marine

Engineering Training candidates and Trade Apprentices trained in designated trades under Apprentices Act 1961. GOALS:  To develop and sustain business growth by building itself to an ever increasing standard of excellence in all its endeavors.  To monitor, benchmark and continuously improve the business potential through global customer focus.  The year-to-year performance goals in line with the quality objectives are indicated in the MOU documents submitted to the Ministry of Defense. Functional Directors initiate appropriate actions after review of Quality Policy, Quality Objectives and Achievements.

Mazagon Dock Ltd. Mumbai is committed to     Comply with the applicable environmental legislation. Prevention of pollution Cleaner technological processes. Conservation of resources.

The objective in terms of productivity is also declared in the following terms.  To ensure optimum utilization of facilities in the ship building division, including facilities created for submarine building.  To ensure optimum utilization of facilities created for manufacturer of offshore oil platforms.  To realize greater operational efficiency, improved productivity and higher capacity utilization and generation of internal resources.

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 To achieve and maintain high degree of customers satisfaction with timely delivery of quality products and services at competitive rates; and  To establish customer feedback system.

 To upgrade the quality of human resources and strengthen the technical and managerial competence for growth.  To achieve higher level of safety standards.  To restructure the manpower by rationalization  To achieve continuous increase in value addition per employee.

Mazagon Dock has created facilities to serve defense, civil and energy sector at the following strategic locations:  Dockyard Road, Mazagon, Mumbai – 400010  Nhava yard, close to Jawaharlal Nehru Port Mumbai Harbour.  Mangalore yard situated adjacent to New Mangalore port in Karnataka state.

CORPORATE GOVERNANCE (Corporate Social Responsibility): In accordance with the instructions of Ministry of Defense, Government of India, Mazagon Dock Ltd. (MDL) has identified a village named Katkari Pada No. 2 at Panvel Taluka, Raigad District for its socio-economic development. The village adoption project has been named as GRAM VIKAS KPV-2. Below are some of the key elements of the Corporate Social Responsibility (CSR) Conducted by the organization:1) The total population of the village is 80 in number. Most of them are illiterate and economically very poor. The total community residing there belongs to the tribe viz. Katkari. The village is having no means of livelihood except going for the quarry (stone cutting) job and people are living below poverty line. 2) With a view to bring about social up-liftment including improving primary health care facilities, an extensive rapport was built up with the villagers by project officers and social volunteers in a number of visits to the village site. The villagers are being consistently educated by the Project Team on the importance of health care and village cleanliness.

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3) Considering the need of improving health care, the Company has been conducting health check-up camps after every one and half month regularly with the help of MDL team of doctors and the Project Team. Prescribed medicines have been provided to them free of cost. 4) The Project Team is taking keen interest in upliftment of socio-economic conditions of the villagers through interaction in terms of education of adults/children, vocational training, and personal hygiene. 5) With a view to make people self supporting and economically independent in terms of their livelihood earnings, three ladies of the village are being given training on tailoring work through tailoring classes. The company bears the total expenditure towards the training including giving them monthly ST bus passes to attend the same. After successful completion of their training, they will be given sewing machine.
6) In a recent function held on 26th April 2008, these ladies were given one

sewing machine by the company. During the function, Sarpanch of the village, Members of Zilla Parishad Committee along with MDL Officers were present.
7) Considering the need to improve the health care of the villagers, the Project

Team including the Company doctors also conducted the health check-up camp on 26th April 2008 and required medicines were provided to the villagers.

8) With a view to promote village developmental activities and future plans for

sustainable development of the village as part of the Corporate Social Responsibility, the Member of the Board of Directors, Dr. S.K. Pachuari visited the adopted village on 9th May 2008. 9) With a view to promote education, the following educational needs/facilities were provided to the school going children of the village for the academic year 2008-09:a. School uniforms for girls & boys. b. School bags. c. Slates, pencils, pen and other school materials. 10) The project team is providing continuous support to the school going children and the people of the village. The aim is to help villagers to help themselves and achieve a good socio-economic status in the society.



Ca a a d h irmn n M a in an g g D r irecto

(C D M)








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Chapter – 3 Introduction to the Topic

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“Health, Safety and Welfare Activities”

Health is generally defined as being "a state of complete physical, mental, and social wellbeing and not merely the absence of disease or infirmity" according to the World Health Organization (WHO).

In 1986, the WHO, in the Ottawa Charter for Health Promotion, said that health is "a resource for everyday life, not the objective of living. Health is a positive concept emphasizing social and personal resources, as well as physical capacities."

Safety is the state of being "safe" (from French sauf), the condition of being
protected against physical, social, spiritual, financial, political, emotional, occupational, psychological, educational or other types or consequences of failure, damage, error, accidents, harm or any other event which could be considered nondesirable. This can take the form of being protected from the event or from exposure to something that causes health or economical losses. It can include protection of people or of possessions.

Welfare includes anything that is done for the comfort and improvement of
employees and is provided over and above the wages. Welfare helps in keeping the Page 20 of 114

morale and motivation of the employees high. The welfare measures need not be in monetary terms only but in any kind/forms. Therefore, Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

Chapter – 4 Introduction to the Project

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Introduction to the Project:
The project “Health, Safety & Welfare Activities” selected by the researcher for the purpose of summer internship in Mazagon Dock Limited is because of the fact that the concern is a Ship Building Company which comes under Heavy Industries Umbrella with a huge labour workforce which enforces the organization to follow all the Statutory Health, Safety and Welfare Measures as per Indian Factories Act 1948.

Objectives of the Study:
The objectives of the present study are as under  To examine and analyze various Health, Safety & Welfare Activities conducted in the organization.  To determine how these activities are implemented & managed in a successful manner by different departments.  To determine whether the actual beneficiaries are happy and satisfied with the Activities conducted.

 To conclude, how these activities are benefiting employees and keeping
them motivated and creating a healthy work environment.  To suggest measures (if any) on the basis of findings during the course of study.

Importance of the Study:
The very logic behind conducting health, safety and welfare activities is to create efficient, healthy, loyal and satisfied labor force for the organization. Therefore, the purpose of doing such a study is to prove, how an employee, due to various welfare activities, is continuously kept motivated and focused to do his duties Page 22 of 114

with more faith and responsibilities because, his organization for which he is working, is taking care of all his basic needs through such activities therefore not only satisfying the Mandatory needs of the Factories Act 1948, but also the needs of the workers.

Scope of the Study:
The Factories Act 1948 is divided into three basic parts viz. Health, Safety and Welfare. Therefore, Study revolves around the above mentioned factors in which researcher will study the implementation of The Factories Act 1948 in the industry with special focus on Mazagon Dock Ltd. to understand how the activities are conducted smoothly and efficiently in such a large organization with such a huge labour workforce. Researcher will also study how the non-statutory health, safety and welfare activities are conducted to make workers feel a sense of care, happiness and security in the organization. Below is the detailed scope of study:-

Statutory Requirements
 Health  Safety  Welfare

Non-Statutory Requirements
 Sports Club  Entertainment  Library  Medical Facilities  Housing Facilities  Co-Operative Credit Society

Research Methodology:
 Hypothesis:

“Well Thought, Well Implemented and Well Managed Health, Safety and Welfare Activities helps keep Employee Morale high and help reduce Industrial Relation (IR) related problems at a greater extent, as is the case of Mazagon Dock Limited.”
 Research Design:

 Systematic Sampling Page 23 of 114

1) Researcher is going to use a Systematic Sampling Design in which he will visit all the listed departments and there in-charges personally and collect data from them.
 Data Collection:

 Researcher will use the Personal Interview techniques in which he will take the interview of the department in-charges who are handling all the above mentioned activities.  Researcher will also use observation method to observe employee reactions on the activities conducted, by participating in and observing these activities actively.
 Execution of Data:

 The data collected will be properly checked and errors if any will be corrected.  Only the relevant data needs to be sorted out.  Analysis of Data:  Hypothesis testing will be done here on the basis of data collections.  Collected Data will be analyzed using Chi-Square Test.
 Generalization & Interpretation of Data:

 If hypothesis testing is successful, then the Generalization will be made on the basis of the hypothesis.  Data will be interpreted accordingly for preparation of report and presentation.
 Preparation of Report:

 Report will be prepared on the basis of Generalization & Interpretation using standard format provided by the college.  Rough draft report will be submitted for corrections to the Company & College.  Final Report will be prepared after corrections made in Rough Draft.

Limitations of the Study:
1) Non-availability of time from the guide as he use to be busy all the time during the working hours. 2) Scope of the study limited to the work area where research is to be conducted as the organization comes under Ministry of Defense Production and the area is declared as “Prohibited Area”.

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Chapter – 5 Facts & Findings

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As per the Chapter III of the Factories Act 1948, following provisions are to be made in a factory with respect to Health:Sec. 11 Cleanliness Sec. 12 Disposal of wastes and effluents Sec. 13 Ventilation and temperature Sec. 14 Dust and Fume Sec. 15 Artificial Humidification Sec. 16 Overcrowding Sec. 17 Lighting Sec. 18 Drinking Water Sec. 19 Latrines and urinals Sec. 20 Spittoons Researcher has used observation method in which he acted as a participative observer in various areas of the organization and found following facts about the above mentioned provisions :Sec 11 – Cleanliness is maintained adequately in every corner of the organization and working areas where the cleaning staff after coming at 07:00 am cleans and sweeps the work area of the office premises, cabins and work areas on daily basis.

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Sec 12 – For Disposal of wastes, every work area, office premises and cabins are provided with dustbins and it is cleaned on daily basis to ensure that the dust is not accumulated and is not overflowing from the dustbin. Sec 13 – Sufficient ventilation is provided in every building and work areas so as to avoid suffocation and other health related problems. Sufficient amount of windows, exhaust fans and room space is provided in work areas as well as in canteen premises so that the ventilation is maintained in a good state. As far as temperature is concerned, some of the cabins and office premises are airconditioned (wherever required) while some are not where adequate ceiling fans and table fans are provided to ensure sufficient air circulation and maintenance of room temperature.

Sec 14 – Since it is a shipbuilding industry, there is less or no scope for dust & fume generation. Sec 15 – Since it is a shipbuilding industry, there is no scope for Artificial Humidification. Sec 16 – Since, the area under production is huge which can accommodate more people than employed on the campus, hence overcrowding is not possible and even in the Buildings and work areas, enough space is provided per person to work easily and comfortably hence avoiding health related issues. In production areas also, enough care is taken to avoid overcrowding. Around 6 canteens have been provided to ensure that there is no overcrowding during the eating times. Sec 17 – Enough care has been taken in terms of lighting of the factory premises. Every building and production areas are sufficiently lighted to avoid any dark areas. Even natural lighting is not obstructed by complicated construction of building and production areas. Enough windows and open areas are left so that natural light is not obstructed but taken care of the formation of shadows to such an extent as to prevent eye-strain or the risk of accident to any worker. Sec 18 – Drinking water coolers provision is done on every floor of the building as well as every place near the production & work areas where workers are working and steps like cleaning of water tank on quarterly basis are taken to ensure that the workers health are not at risk due to dirty drinking water. Also water purification devices are Page 27 of 114

installed near every cooler from which water passes before entering in cooler to ensure water supplied to employees are clean from all prospects. Sec 19 – Every floor of the buildings and other production areas are equipped with latrines and urinals with separate enclosures for ladies and gents. Even canteen premises are equipped with latrines and urinals for ladies and gents. They are kept clean adequately to avoid any health hazards. Sec 20 – Although eating Tobacco and Cigarette or any kind of Smoking is prohibited, still Spittoons are provided at designated places conveniently placed near the work areas to ensure cleanliness in every corner of the premises where workers are working. Hence, from the above mentioned observations done by the researcher in Mazagon Dock Ltd, conclusion can be drawn that the organization is following all the mandatory & statutory requirements given in Chapter III of the Factories Act 1947.

As per the Chapter IV of the Factories Act 1948, provisions are to be made in a factory with respect to and to ensure Safety of the Workers. As the Safety has a large scope in the Factories Act and every aspect of safety is not required in each industry, only those aspects are studied by the researcher which applies to a shipbuilding industry, which are mentioned below:Sec 21 Fencing of Machinery Sec 22 Work on or near machinery in motion Sec 23 Employment of young person on dangerous machines Sec 29 Lifting machines, chains, ropes and lifting tackles Sec 32 Floors, stairs and means of access Sec 33 Pits, sumps, openings in floor Sec 34 Excessive weights Sec 35 Protection of eyes Sec 38 Precautions in case of fire Sec 40 Safety of buildings and machinery Sec 40B Safety Officer As per the Chapter IV Sec 40B (1) of the Factories Act 1948, employment of safety officer is mandatory in every factory, (i) Wherein one thousand or more workers are ordinarily employed, or (ii) Wherein, in the opinion of the State Government, any manufacturing process or operation is carried on, which process or operation involves any risk of bodily injury, poisoning or disease, or any other hazard to health, to the person employed in the factory. Page 28 of 114

Researcher has used personal interview method in which he took interview of the Safety Officer of the Company and also used observation method in which he acted as a participative observer in various areas of the organization and found following facts about the above mentioned provisions :Sec 21 – It is observed during the visit to the factory premises by the researcher that all the working machineries are properly guarded & fenced to avoid any accidents & mishandling due to unknown persons touching the machinery from outside the fence.

Sec 22 – All the heavy machineries in motion like lifters, cranes etc. are handled by only specially trained workers who have good experience and specialization in handling this kind of machineries. Also, every safety measures are taken while moving heavy objects. Safety gears like helmets etc. are used while carrying out these operations so as to avoid any accidents. Sec 23 – Young employees are first trained under the guidance of specialized supervision and only after successful completion of training on heavy machineries; they are allowed to operate the same. Sec 29 – All the lifters, chains and ropes used are made up of good quality materials like ropes are made up of good quality nylon, lifters & chains are of branded companies etc. and also they are thoroughly examined by the operator before operation on regular basis to avoid accidents. Sec 32 – Floors, Stairs, gangways and other means of access are well designed as to ensure free movement of people and goods within the factory premises. It is also ensured that there are no obstacles or substances likely to cause persons to slip. Sec 33 – There are no pits, sumps or openings found in the factory premises which may cause danger to the safety of the employee working on the premises. Also, wherever said work is to be performed, it is ensured that proper signboard is displayed and fencing is done around the work under progress. Sec 34 – Page 29 of 114

It is ensured that above the maximum limit of the employee, they don’t lift the weight and use only designated fork lifters for the same which are provided to each workshops and warehouse on the factory premises. Sec 35 – Mazagon Dock Ltd takes good care about safety of their employees and to ensure safety of important parts such as eyes, hands, legs etc. Every safety measures like helmet, safety goggles, safety uniforms are provided wherever necessary to ensure maximum protection of its employees. For protection of eyes from harmful sparks, fumes, fine particles etc. from welding and gas cutting activities, employees are given safety goggles which are compulsory to wear by the employee while carrying out such activities. Sec 38 – To ensure the maximum safety from fire to the Mazagon Dock Ltd., there are 3 fire tenders in MDL which are well maintained, Portable Fire Extinguishers to fight each kind of fire, smoke detectors in every building, fire pumps in almost every area of the factory premises. There are 45 fire-fighters who work round the clock on shift basis everyday to provide fire fighting services. Sec 40 – The factory building and premises are thoroughly checked every now and then by the factory inspector during his/her visit to the factory and ensure that every building and machinery is properly maintained in good condition. Also, suggestions/findings of the factory inspector are taken seriously and acted upon immediately to ensure maximum safety of the workers. Sec 40B – Mazagon Dock Ltd. has more than 7000 workers on roll and roughly around 3000 contract labour workforce which enforces the organization to employ a strong team of Industrial Safety Officers and Fire Safety Officers on roll. To fulfill the statutory requirements, Mazagon Dock Ltd. has a full Department of Industrial Safety and Department of Fire Safety. Below are the hierarchies of the Industrial Safety Department and Fire Safety Department:-

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Researcher has studied the Industrial Safety Department by taking personal Interview of DGM-Safety and found following facts and findings:-

Deputy General Manager (DGM) SAFETY

Chief Manager (CM) SAFETY

Chief Manager (CM) SAFETY

Manager (M) SAFETY
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Hierarchy of Department of Industrial Safety
The basic objectives of Safety Cell/Department of MDL:1) Implementation of Safety on Ground Locations. 2) Implementation of Safety on High Locations. 3) To provide safe working environment to the workers/employees of MDL. 4) Implementation of the safety provisions to me made in a factory mentioned in the Chapter IV of the Factories Act 1948. 5) Reporting to Chief Inspector of factories, the post which is now renamed as Directorate-Industrial Safety & Health (DISH) – (GoM)

There are two basic types of Operations in MDL:1) Production on Machines. 2) Fabrication of Steel Plates. Qualification of Safety Officer:Safety officer should be necessarily an engineer and should have done an Advanced Diploma in Safety course provided by any of the Universities in India/Abroad. No. of Safety Officers required as per The Factories Act 1948:1) Between 1000-5000 workers – 1 Officer 2) Between 5000-10000 workers – 3 Officers. Responsibilities of Safety Measures to be Taken are lies with below people:1) Occupier 2) Factory Manager 3) Safety Officer Duties of Occupier/Manager/Safety Officer are prescribed in the Factories Act 1948. All of them are responsible for implementing the safety measures in the factory they are heading and all the correspondence to be done to the DISH-GoM is to be done by one of the these three people. Accidents occur due to following reasons:1) Unsafe Act.

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2) Unsafe Conditions – Management is responsible to provide safe working conditions. Personal Protective Equipments (PPEs):The Safety equipments which are provided to all the employees working in the factory/production areas are called as Personal Protective Equipments (PPEs). These equipments are given to anyone who is working in the production area and also to those who are not related to production directly but who visit these areas for official works. The purposes of wearing these equipments are to protect the body and its parts from the accidents that can occur during the regular working and make the person temporarily or permanently disable or can even lead to his/her death. Punishments:1) Violation of any provisions of safety given in Chapter IV of the Factories Act 1948 can attract criminal proceedings. 2) The punishment can be, “Imprisonment upto 7 yrs or fine extending 1 Lac or both”.

Safety Measures Taken by MDL:1) Safety Rooms. 2) Safety Manuals. 3) Safety Handbooks. Safety Committees:Safety committees comprises of all HODs, Section Heads and Equal Participation from both Management & Workers. Yearly Promotional Activities done to create awareness about Safety are :1) Safety Training. 2) Safety Slogan Competition. 3) Safety Week Celebration. 4) Safety Exhibition. 5) Display of Safety Posters, Hoardings etc in different areas of production. 6) Safety Tour to other industries by the safety committee members. To prevent Accidents in MDL, following safety measures are taken:1) Safety permit system/Work permit System for working at height 2) Only authorized workers are allowed to working in confined space. 3) Training of Handling Hazardous Goods. 4) Training to handle cranes & lifters for lifting heavy objects. 5) Only qualified workers along with qualified and experienced electrical engineer is deputed while connecting 440 volts electric connections. Page 33 of 114

6) Stagings, Railings, Proper access through ladders wherever required. 7) Fume extractors for removing smoke at workplace. 8) Emergency plans (onsite or offsite i.e. flood, bomb blast etc in city outside organization) like Assembly point, Disaster Management team etc are there in place. Long-term measures Taken to ensure Safety in MDL:1) Safety Audit (Internal/External). 2) Safety Committee Meeting is conducted regularly & suggestions are implemented wherever necessary. 3) Safety Inspections. 4) Accident Investigations. 5) Accident reporting to DISH-GoM (A person disabled due to accident for more than 48 hrs is to be reported. If it is fatal accident, then within 4 hrs.). 6) Noise Study (As & when required). 7) Elimination Study (At night time). 8) Work Environment Study (Periodically). 9) Medical Examination of Workers (Periodically). 10) Fencing of Hazardous Area. Documents maintained by Safety Department in MDL:1) Humidity Register. 2) Register for Adult Workers. 3) Register for Child Workers. 4) Register for Child Labour. 5) Leave Register with Wages. 6) Report of Accident. 7) Dangerous act reporting. 8) Abstract from the Factories Act 1948. 9) Annual Returns. 10) Muster Roll. Personal Protective Equipments provided are as follows:1) Face shield. 2) Helmet. 3) Apron. 4) Boiler Suit. 5) Safety Goggles. 6) Ear Muff. 7) Hand Gloves. 8) Safety Shoes. 9) Gum Shoes. 10) Rain Coat. 11) Fire Hydrants/Fire Extinguishers/Fire Engines. Page 34 of 114


Researcher has studied the Fire Safety Department by taking personal Interview of DGM- FIRE and found following facts and findings:-

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Hierarchy of Department of Fire Safety There is a separate department for Fire Safety in Mazagon Dock Limited. They are equipped with following facilities:1) Three Fire Tenders(Fire Engines) 2) 45 Fire Fighters working round the clock in 3 shifts as it is an essential service. 3) Each shift has 13 fire-fighters. 4) Every shift has 3 drivers. 5) Out of three fire tenders, any 2 are always Operational and any one is in Maintenance.

Purpose of Separate Fire Safety Department:1) To save men, material and production. 2) To save family quarters; this is adjacent to the factory premises.

Combination of Fire (Why fire happens)
Fire happens due to the combination of four substances wiz:Fire Combination Will Create Fire Free Radicals (Surrounding Items) Oxygen Heat

Fire Extinguishing Methods:1) From any of the three basic substances (Fire, Heat and Oxygen) remove one substance, fire will extinguish automatically. 2) The methods to remove substances are called as:a. Fuel – Starving Method b. Heat – Cooling Method c. Oxygen – Smothering Method


For extinguishing fire, following types of portable extinguishers are used:1) AFFF – Aquaise Film Forming Foam a. It will produce mechanical foam suitable for A & B class of fire b. The combination contains 8.5 ltrs of fresh water and 0.5 ltr of AFFF (Detergent). c. 120gm CO2 cartridge for operating of this liquid is required. d. It will produce 9 X 6 ltrs = 54 ltrs foam. e. The effect will be smothering effect. f. To disperse 9 ltrs of foam, it takes 60 – 90 secs duration.

2) Dry Chemical Powder a. It is suitable to extinguish Metallic i.e. Type C class fire. b. It has combination of 7 powder and called as Monex Powder. c. CO2 cartridge is required for operating the cylinder. d. To empty the cartridge, it requires 60-90 secs. e. The powder sticks on the metal surface & cut the supply of Air/Oxygen. 3) Halon Gas Extinguisher a. It is suitable to extinguish Gas i.e. Type D class fire. b. These are used for cutting gas supply. 4) CO2 – Cooling & Smothering a. It is suitable to extinguish Electrical i.e. Type E class Fire. b. The dispersion from extinguisher can be stopped in between by just closing the nozzle tap. c. If the weight of CO2 Extinguisher is 10% below actual weight, then remove from the working place and operation.

There are fixed Systems also in place for Fire – Fighting on the premises of MDL:1) Firemen systems i.e. the red-colored water pipe-line is spread in the entire premises of the MDL. 2) The different types of Automatic detectors like Fire, Heat, Flame, Smoke etc are fitted according to the specific area requirements to detect Fire.

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As per the Chapter V of the Factories Act 1948, provisions are to be made in a factory with respect to and to ensure Welfare of the Workers in aspects. As the Welfare has a large scope in the Factories Act and every aspect of welfare measures is not required in each industry, only those aspects are studied by the researcher which applies to a shipbuilding industry, which are mentioned below:Sec 42 Washing Facility Sec 44 Facilities for Sitting Sec 45 First Aid Appliances Sec 46 Canteen Sec 47 Shelters, rest rooms and lunch rooms Sec 48 Crèches Sec 49 Welfare Officer Sec 49(1) – In every factory wherein five hundred or more workers are ordinarily employed, the occupier shall employ in the factory such number of welfare officers as may be prescribed. Sec 49(2) – The State Government may prescribe the duties, qualifications and Conditions of services of officers employed under sub-section (1). Researcher has used personal interview method in which he took interview of the Welfare Officers of the Company and also used observation method in which he acted as a participative observer in various areas of the organization and found following facts about the above mentioned provisions :Page 38 of 114

Sec 42 – Appropriate washing facility is provided nearer to the work areas such as wash rooms, toilets etc. which are separate for ladies and gents. Also, washing allowance of Rs. 60/- is given every month to all the uniformed workers. Sec 44 – Facilities like chairs, benches etc. are provided wherever necessary to accommodate all the workers who are working on the premises. Also, appropriate number of benches is provided in canteen to ensure maximum accommodation during the peak hours of lunch timings.

Sec 45 – A proper well maintained dispensary with experienced team doctors and nursing staff is provided on the premises to ensure immediate First-Aid at the time of emergency because of accident injury or any other health related diagnosis. There are two fullyequipped ambulances with properly trained drivers and nursing staff to operate. Also, necessary prescribed medicines are kept for immediate use at the time of any kind of emergency situation. Sec 46 – Canteen is a statutory requirement under The Factories Act 1948. Other provisions as per Factories Act with respect to canteen are as follows:1) Canteen is compulsory for the company who employs 500 or more people. 2) Rates of the food stuff provided should be on no profit-no loss basis. 3) The total area of the cafeteria should be at least 30% of the total workforce. 4) There should be separate enclosures for Ladies and Gents. Mazagon Dock Ltd. has total of 6 canteen facilities to support the requirement of about its 10000 strong workforce on its premises. From six, two are for the officers, and others are for staff and workers. Vegetarian Dish For Officers, the rate is Rs. 22/- per plate and subsidy given is Rs. 2/- per plate. For Staff & Workers, the rate is Re. 1/- per plate and subsidy given is Rs. 23/- per plate. Items per plate for lunch & dinner are:1 Pav (Chappati for officers), Chutney, 1 Plate rice, 1 Subji, Dal, Butter Milk & Papad. Person can ask for 1 more papad and 1 more Gravy Subji by giving a coupon of 15 paisa for each item. Non-Veg Dish Page 39 of 114

For Officers, the rate is Rs. 35/- per plate and subsidy given is Rs. 10/- per plate. For Staff & Workers, the rate is Rs. 1.60/- per plate and subsidy is Rs. 43.40/- per plate. Items per plate for non-veg lunch & dinner are:Mutton Curry Rice, Mutton/Chicken Biryani, Fish Curry etc. For breakfast to Officers, Staff & Workers, only 15 paisa per food item taken like Vada Pav, Misal Pav, Idli Vada Sambar, Kheema Pav, Tea etc. is charged. Company provides breakfast, lunch, dinner & tea at suitable time in the canteen and at the work areas. Also, Mazagon Dock Ltd is one of the few companies in India which serves non-veg items on daily basis in its canteen. The total expenditure for canteen & subsidy provided on yearly basis is around Rs. 10 crore. Apart from this, company has a strong workforce of around 100 people to manage the canteen facilities on its premises. Sec 47 – Shelter, rest rooms and lunch rooms are provided are provided at appropriate places as per the convenience of both ladies and gents workers. Provision for drinking water with coolers & purification equipment is also done on the factory premises on appropriate places. Sec 48 – Crèche is provided on the factory premises with two well-trained women to take care of the children below 6 yrs. of age. The crèche is well ventilated, lighted and maintained in good condition to ensure proper hygiene for children. Sec 49 – Welfare officer for each function mentioned above are designated to take care of all the functional activities within their work responsibilities.

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Working Hours of Adults
As per the Chapter VI of the Factories Act 1948, provisions are to be made in a factory with respect to and to ensure that working hours of the Adult Workers in any case should not exceed the permissible limits. The below are the details study done by the researcher in respect to the above aspect in Mazagon Dock Limited:Sec 51 – Maximum working hours per week is forty-eight hours Sec 52 – A holiday for a whole day on the first day of the week Sec 53 – Compensatory Holiday Sec 54 – Daily Hours Sec 55 – Intervals for rest Sec 56 – Spreadover Sec 57 – Night Shifts Sec 58 – Prohibition of overlapping of shifts Sec 59 – Extra wages for overtime Sec 60 – Restriction on double employment Sec 61 – Notice of periods of work for adults Sec 62 – Register of adult workers Sec 66 – Further restrictions on employment of women Researcher has referred Memorandum of Settlement (MoS) between Management of Mazagon Dock Limited and Nine Union representatives of Mazagon Dock Limited which is prepared according to the provisions made under Sec 2(P), read with Sec 18(1) of the Industrial Disputes Act 1947 which is a handbook for every worker employed in the organization on the payroll. Researcher has found following facts after referring to the MoS:Sec 51 – The company normally works to a 5 days working week from Monday to Friday in three shifts of 9 hrs each. The company is normally closed on Saturday and Sundays. The essential services team like Fire Safety and Industrial Safety teams follows 6 days working with 8 hrs; three shifts daily with 1 weekly off. Page 41 of 114

Sec 52 – The company is normally closed on all Saturdays and Sundays in a week and follows 5 days working method of 9 hrs a day shift. Sec 53 – The company if calls any worker on the non-working days i.e. on Saturday or Sunday, the same worker will be paid Overtime at 1.50 times the normal hourly rate plus Compensatory Off to be availed within the following two weeks.

Sec 54 – The company works normally in following shift timings:Workmen – Monday to Friday First Shift – 0700 hrs to 1630 hrs Second Shift – 1600 hrs to 2400 hrs Third Shift – 2330 hrs to 0730 hrs Clerical, Technical and Sub-Staff – Monday to Friday General Shift – 0900 hrs to 1630 hrs Hence, in any case, the total no. of working hours does not exceed above 9 hrs in a working day. Sec 55 – The company allows half an hour lunch time and 15 minutes tea time in every shift for lunch, dinner and other natural reasons. Apart from this, especially for the night shift, company allows a rest period 0300 to 0330 or of half hour. Sec 56 – The company ensures that at any case, the working hour spreadover does not exceed the shift timings, and in some special situations, if it increases, it does not exceed 10.5 hrs. For every hour worked above 9 hrs, company pays Overtime of 2 times the normal hourly rate. Sec 57 – The company ensures that if a worker is working in the night shift, he joins his next duty not before completing 15 hrs outside the company premises for rest and other personal works. Also, if the worker has worked in the night shift on Friday, the company ensures that he completes 48 hrs of the holiday period enjoyed by other workers in other shifts. Sec 58 –

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The shift timings of the workers are so arranged as to ensure that one relay of workers in a shift is not working with the other relay of workers of other shift. This ensures that there is no overlapping of shifts in the organization. Sec 59 – The company pays Overtime, if a worker works above 9 hrs a day or above 48 hrs a week or on Saturdays and Sundays. The calculation is mentioned below (As per given in The Factories Act 1948):1) Sunday will be observed as weekly off day for the purposes of the Factories Act 1948. 2) The payment for working overtime is regulated as follows:a. The normal hourly rate of payment will be arrived at by dividing the Basic Pay plus Dearness Allowance by 208. b. For work beyond normal working hours from Monday to Friday, the Overtime payment will be payable as per the provisions of the Factories act i.e. where a worker works for more than nine hours in any day or for more than forty eight hours in any week, he shall, in respect of overtime work be entitled to wages at the rate of twice his ordinary hourly rate of wages calculated be formula mentioned in point a. c. For work done on Saturday, the Overtime will be payable at the normal working hourly rate till 48 hrs are reached in that particular week, and thereafter at double the normal working hour rate. d. For work done on Sunday, which will be treated as Weekly off day, the Overtime shall be paid at 1.50 times of the normal working hour rate, plus one day as compensatory off shall be granted as per provisions of the Factories Act 1948. Sec 60 – The company by its policy restricts the employee from employing in any other occupation while in service with the company. If found guilty, the employee is charge-sheeted and appropriate legal action, as per the Model Standing Order of the company is taken against him/her. Sec 61 – The company has made provisions for notice boards in such convenient designated places where workers normally can read the notices. The notices are displayed on such boards related to working hours, shift timings, change in shift timings etc. to ensure that each one of them are aware of the required number of hours he/she needs to work in the premises of the organization. Sec 62 – The company maintains an Automatic Swap Card system in which worker has to swap his/her identity card and automatically his/her attendance is registered the server where all the muster roll is maintained. In the muster roll, following details are Page 43 of 114

registered, Name of the worker, The nature of the work, The group he/she belongs to, working timings according to shifts, leaves data, overtime data and any such particulars required to be maintained as per the Factories Act 1948. Sec 66 – The company ensures that women employed in the factory/production area are not working before 0700 hrs and after 1630 hrs on normal working days/holidays.

Employment of Young Persons
As per the Chapter VII of the Factories Act 1948, there is a Prohibition on employment of young children. The provisions are made in different Sections which start from Section 67 and goes on till Section 77 which states that no child worker is allowed to work below the age of fourteen years and if above fourteen years, he has to procure a certificate of fitness from a certified Surgeon to work in a factory. And if he/she is employed in the factory, he/she shall not work above four and half hours in a day or in a night. A separate child labor register is needed to maintain which will be checked by the factory inspector from time-to-time to ensure all rules are followed by the factory with respect to employment of child worker. As far as Mazagon Dock Limited is concerned, researcher has found that there is no provision for the employment of Child Labor/Worker in the factory premises as well as any part of the organization. Hence, no provision of the Factories Act applies to the studied organization.

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Also, some of the Non-Statutory welfare activities which are not mentioned in Factories Act 1948 are conducted on the premises to ensure maximum satisfaction of the workers who are giving their best efforts for achievement of the goals of the organization at a whole. Below mentioned are some of these non-statutory activities:Housing Facilities :Mazagon dock Ltd. provides interest subsidy on the loan taken by the employees from any financial institution. The subsidy provided is 3% p.a. on the interest given by the employee on Housing Loan taken. For e.g.:- If the interest at current market rate is 12% p.a., then the employee has to pay the same to the financial institution and claim 3% of the interest paid from the company. Therefore, company will pay him (on approval from management), the interest of 3% out of 12% he paid and will disburse the amount on half yearly basis in his salary. In this way, employee is supposed to pay on 9% p.a. interest on loan taken by him. There is a upper limit for this. Interest Subsidy is payable upto Rs. 5,00,000/- only of the total loan taken. This means even if employee takes Rs. 20,00,000/- housing loan from the bank, his is eligible for claiming the interest subsidy on Rs. 5,00,000/- only. Loan taken for building, purchasing or repairing the house is eligible for the interest subsidy. Also, the scheme is available for build/purchase/repair of only 1 house in his lifetime.

Entertainment (including sports & games) : Sports Club Mazagon Dock Ltd. is one of the few good companies who cares for its employee’s health & welfare and therefore has provided a well equipped sports club & gym on its premises for workers, staff & officers.

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For Workers, timings are 11.15 a.m. to 12.00 p.m. & For Staff, timings are after 3.30 p.m. Sports club has Carom Board, Chess & T.T. Tables available for playing in the said time period. Gym is well equipped with all the necessary equipments of body building. Apart from above facilities for daily entertainment, Mazagon Dock organizes various tournaments on its premises and also encourage its employees to participate in outside tournaments like state level championships and national level championships. Many awards had been won by participants from Mazagon dock in various District, State and National Level Championships. Company organizes 2 Cricket Tournaments on yearly basis. One is Shipping Shield which is organized between the month of Jan-Feb and the other is Time Shield which is organized in the month of Nov-Dec. Also, 3 Yoga classes (3 months batches) are conducted by the Sports Club Management in a year. Ambika Yoga Kutir, Thane is the instructor for the same. Employees of Mazagon Dock also participate in Marathi & Hindi Drama competition on State levels. The current achievements in Drama Competition are:1) 2nd Prize on State Level for Direction in a Hindi Drama in the year 2008. 2) Silver Medal for the Artists in the year 2008. 3) Consolation Prize for the Guest Artist in the year 2008. 4) Interestingly, the set was prepared using scrap materials like empty boxes, woods etc. Fee for the Members of Sports Club is:One time Deposit of Rs. 25/- and annual contribution of Rs. 6/- as membership fees. Library Facility Mazagon Dock Ltd. has a state of art library facility which has a collection of thousands of book in various languages such as Marathi, Hindi and English and has all types of story, novels and educational books in its collections. Fee for the Members of Library Facility is:

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One time Deposit of Rs. 25/- and annual contribution of Rs. 5/- as membership fees.  For issue of single book - Rs. 5/- per month.  For issue of double book - Rs. 10/- per month.

Transportation facilities: As per Factories Act 1948 it is not mandatory for any firm to provide for transport related facilities to its employees. Mazagaon Dock Ltd. Gives Transport Subsidies revised on regular basis as per Memorandum of Settlement (MoS) between Management and Worker Unions. The current Subsidies provided by Mazagon Dock Limited are as follows: For IDA employees – Rs. 350/- per month.  For MDL DA employees: o Basic upto Rs. 150/- - Rs. 650 per month. o Basic Rs. 151 & above – Rs. 800 per month. Freebies during festivals and/or Founder's Day. As per the understanding between Management and Worker Unions, one gift is given in every 2 years during the Diwali Festival time. The gift given is same for all the people working right from workers to the officers. Also, on retirement, a memento gift is given i.e. a Gold Coin for his long attachment & contribution for the company. Co-Operative Credit Society & Consumer Credit Society: As per Factories Act 1948 it is not mandatory for any firm to provide for a Co-Operative Credit Society to its employees. But, if provided, it needs to be managed under the framework of Co-operative Societies Act. Mazagon Dock Ltd. has a co-operative credit society called “MAZAGON DOCK EMPLOYEES’ CO-OPERATIVE CREDIT SOCIETY LIMITED “. The operations of Credit Society are managed by Managing Committee which comprise of following members:President Chairman Vice-Chairman General Secretary Treasurer Committee Members (Currently 23 Members) Page 47 of 114

 In this society, every member saves/invests in deposits and they are given interest on their deposits as per the prevailing market rate. Following types of deposits are taken by the Co-operative Society: a) Cumulative Deposits b) Mutual Benefit Fund c) Kamdhenu Deposit d) Voluntary Deposit Schemes e) Death Benefit Fund

 Following Member Welfare Schemes are run by the Credit Society:a) Felicitation of Students:The society has awarded the prizes to the children of members for their meritorious performance in SSC, HSC, Degree Examinations held in the Academic Year. In the year 2006-2007, 10 students were awarded Gold Medals and 233 Students were awarded Silver Medal. b) Memento to Retired Members:Under this scheme, a Gold Memento of 4 grams is given to the members who retire. During the year 2006-2007, 310 Gold Mementoes have been given to members who retired.  Consumer Society: a) It is run on no-profit no-loss basis. b) The Consumer Goods department Sells Suitings, Shirtings, Sarees, Blankets, Banian, Underware, Cosmetic and Toiletery items etc. of renowned Mills/Companies to its members at purchase price of the society which is lesser than the market price. The society has earned huge profits year on year. Thanks to the efficient contribution of the Managing Committee and the Co-operative Society Staff. The net profit for the year ended 31st March 2008 was Rs. 1,41,89,221.28/-.

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Chapter -6 Analysis & Interpretation

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Researcher has used Questionnaire Method to analyze and interpret the Data using Quantitative Techniques and arrive at some concrete conclusion. The details are given below:-

There Are 3 Categories Of Employees Selected For Study:1) Officers 2) Staff 3) Workers & Sub-Staff

Sample Size Taken For Questionnaire Distribution:1) Officer: - 14 Nos. 2) Staff: - 8 Nos. 3) Workers & Sub-Staff: - 9 Nos.

Questionnaires Are Divided Into Two Parts:1) Statutory Benefits as per The Factories Act 1948 2) Non-Statutory Benefits given by company in addition to above Act

There Are Two Quantitative Methods Used To Derive A Conclusion:1) Median – To find out the range above or below which number of responses lies. 2) Probability Testing – To find out the exact option on which most of the samples have given their responses and arrive at a conclusion. HYPOTHESIS RESTATED:“Well Thought, Well Implemented and Well Managed Health, Safety and Welfare Activities helps keep Employee Morale high and help reduce Industrial Relation (IR) related problems at a greater extent, as is the case of Mazagon Dock Limited.”

Techniques Used To Derive At A Conclusion:1) Questionnaires filled by the Officers/Staff/Sub-Staff/Workers as attached with this report in the Annexure. 2) Self-Observations at the Factory Premises. Page 50 of 114

3) Casual talk with the working employees at the actual work places & various canteen premises.

Analysis and Interpretations
Researcher has used Likert Scale in the Questionnaires distributed to the respondents. The brief introduction of Likert Scale is as follows:A Likert scale is a psychometric scale commonly used in questionnaires, and is the most widely used scale in survey research. When responding to a Likert questionnaire item, respondents specify their level of agreement to a statement. The scale is named after its inventor, psychologist Rensis Likert. A Likert item is simply a statement which the respondent is asked to evaluate according to any kind of subjective or objective criteria; generally the level of agreement or disagreement is measured. Often five ordered response levels are used. The format of a typical five-level Likert item is:1. 2. 3. 4. 5. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree

Likert scales may be subject to distortion from several causes. Respondents may avoid using extreme response categories (central tendency bias); agree with statements as presented (acquiescence bias); or try to portray themselves or their organization in a more favorable light (social desirability bias). After the questionnaire is completed, each item may be analyzed separately or in some cases item responses may be summed to create a score for a group of items. Hence, Likert scales are often called summative scales. Rensis Likert, the developer of the scale pronounced his name 'lick-urt' with a short "i" sound. It has been claimed that Likert's name "is among the most mispronounced in [the] field."Although many people use the long "i" variant ('lie-kurt'), those who attempt to stay true to Dr. Likert's pronunciation use the short "i" pronunciation ('lickkurt').

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Calculation to derive conclusion is as follows:STATUTORY BENEFITS QUESTIONNAIRES - OFFICERS Step 1:- Deriving the Frequency of the options selected
Options Numbers 1 Question Numbers 1 2 3 4 5 6 7 TOTAL 0 0 1 2 6 1 1 11 1 2 0 1 4 5 2 15 1 6 7 2 4 1 4 25 7 6 5 2 0 6 5 31 5 0 1 7 0 1 2 16 14 14 14 14 14 14 14 2 3 4 5 TOTAL


Step 2:- Median of the Frequency thus obtained Option Nos.
1 2 3 4 5

11 15 25 31 16

Cumulative Frequency
11 26 51 82 98


N = 98

Therefore, Median = Value of N/2th item Median = i.e. Value of 98/2th item Median = i.e. Value of 49th item Hence, 50% of the respondents have selected items below of equal to option no. 3 and the remaining 50% have selected items equal to or above option no. 3. Therefore, Value may lie between any options. Page 52 of 114

Step 3:- Probability testing of the Frequency thus obtained
P (Option 1) = 11/98 = 0.11 P (Option 2) = 15/98 = 0.15 P (Option 3) = 25/98 = 0.26 P (Option 4) = 31/98 = 0.32 P (Option 5) = 16/98 = 0.16

Conclusion:Hence, we can conclude from above probability testing that most of the responses i.e. 32% is for Option No. 4. Therefore, Officers “Agrees” that the Statutory Health, Safety and Welfare initiatives taken by the Personnel Department is satisfactory.

NON - STATUTORY BENEFITS QUESTIONNAIRES OFFICERS Step 1:- Deriving the Frequency of the options selected
Options Numbers 1 Question Numbers 1 2 3 4 TOTAL 2 1 0 0 3 1 3 3 3 10 6 6 6 4 22 5 3 4 6 18 0 1 1 1 3 14 14 14 14 2 3 4 5 TOTAL


Step 2:- Median of the Frequency thus obtained
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Option Nos.
1 2 3 4 5

2 10 22 18 3

Cumulative Frequency
3 13 35 53 56


N = 56

Therefore, Median = Value of N/2th item Median = i.e. Value of 56/2th item Median = i.e. Value of 28th item Hence, 50% of the respondents have selected items below of equal to option no. 3 and the remaining 50% have selected items equal to or above option no. 3. Therefore, Value may lie between any options.

Step 3:- Probability testing of the Frequency thus obtained
P (Option 1) = 03/56 = 0.05 P (Option 2) = 10/56 = 0.18 P (Option 3) = 22/56 = 0.39 P (Option 4) = 18/56 = 0.32 P (Option 5) = 03/56 = 0.05

Conclusion:Hence, we can conclude from above probability testing that most of the responses i.e. 39% is for Option No. 3. Therefore, Officers “Neither Agree Nor Disagree” that the Non - Statutory Health, Safety and Welfare initiatives taken by the Personnel Department is satisfactory.


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Step 1:- Deriving the Frequency of the options selected
Options Numbers 1 Question Numbers 1 2 3 4 5 6 7 TOTAL 0 0 0 1 1 0 0 2 0 0 1 0 3 0 0 4 0 2 2 2 3 2 2 13 3 5 4 3 1 4 4 24 5 1 1 2 0 2 2 13 8 8 8 8 8 8 8 2 3 4 5 TOTAL


Step 2:- Median of the Frequency thus obtained Option Nos.
1 2 3 4 5

2 4 13 24 13

Cumulative Frequency
2 6 19 43 56


N = 56

Therefore, Median = Value of N/2th item Median = i.e. Value of 56/2th item Median = i.e. Value of 28th item Hence, 50% of the respondents have selected items below of equal to option no. 3 and the remaining 50% have selected items equal to or above option no. 3. Therefore, Value may lie between any options.

Step 3:- Probability testing of the Frequency thus obtained
P (Option 1) = 02/56 = 0.04

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P (Option 2) = 04/56 = 0.07 P (Option 3) = 13/56 = 0.23 P (Option 4) = 24/56 = 0.43 P (Option 5) = 13/56 = 0.16

Conclusion:Hence, we can conclude from above probability testing that most of the responses i.e. 43% is for Option No. 4. Therefore, Staff Members “Agrees” that the Statutory Health, Safety and Welfare initiatives taken by the Personnel Department is satisfactory.

NON - STATUTORY BENEFITS QUESTIONNAIRES - STAFF Step 1:- Deriving the Frequency of the options selected
Options Numbers 1 Question Numbers 1 2 3 4 TOTAL 1 0 0 1 2 2 3 1 3 9 3 4 1 1 9 2 1 4 3 10 0 0 2 0 2 8 8 8 8 2 3 4 5 TOTAL


Step 2:- Median of the Frequency thus obtained Option Nos.
1 2 3

2 9 9

Cumulative Frequency
2 11 20 Page 56 of 114

4 5

10 2

30 32


N = 32

Therefore, Median = Value of N/2th item Median = i.e. Value of 32/2th item Median = i.e. Value of 16th item Hence, 50% of the respondents have selected items below of equal to option no. 3 and the remaining 50% have selected items equal to or above option no. 3. Therefore, Value may lie between any options.

Step 3:- Probability testing of the Frequency thus obtained
P (Option 1) = 02/32 = 0.06 P (Option 2) = 09/32 = 0.28 P (Option 3) = 09/32 = 0.28 P (Option 4) = 10/32 = 0.31 P (Option 5) = 02/32 = 0.06

Conclusion:Hence, we can conclude from above probability testing that most of the responses i.e. 31% is for Option No. 4. Therefore, Staff Members “Agrees” that the Non - Statutory Health, Safety and Welfare initiatives taken by the Personnel Department is satisfactory.

STATUTORY BENEFITS QUESTIONNAIRES – WORKERS / SUB-STAFF Step 1:- Deriving the Frequency of the options selected

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Options Numbers 1 Question Numbers 1 2 3 4 5 6 7 TOTAL 0 1 1 1 4 0 0 7 1 1 1 2 0 2 3 10 0 1 0 1 4 6 2 14 3 3 2 2 0 0 0 10 5 3 5 3 1 1 4 22 9 9 9 9 9 9 9 2 3 4 5 TOTAL


Step 2:- Median of the Frequency thus obtained Option Nos.
1 2 3 4 5

7 10 14 10 22

Cumulative Frequency
7 17 31 41 63


N = 63

Therefore, Median = Value of N/2th item Median = i.e. Value of 63/2th item Median = i.e. Value of 31.5th item Hence, 50% of the respondents have selected items below of equal to option no. 3 and the remaining 50% have selected items equal to or above option no. 3. Therefore, Value may lie between any options.

Step 3:- Probability testing of the Frequency thus obtained
P (Option 1) = 07/63 = 0.11 P (Option 2) = 10/63 = 0.16 P (Option 3) = 14/63 = 0.22 Page 58 of 114

P (Option 4) = 10/63 = 0.16 P (Option 5) = 22/63 = 0.35

Conclusion:Hence, we can conclude from above probability testing that most of the responses i.e. 35% is for Option No. 5. Therefore, Workers / Sub - Staff Members “Strongly Agrees” that the Statutory Health, Safety and Welfare initiatives taken by the Personnel Department is satisfactory.

NON - STATUTORY BENEFITS QUESTIONNAIRES – WORKERS / SUB-STAFF Step 1:- Deriving the Frequency of the options selected
Options Numbers 1 Question Numbers 1 2 3 4 TOTAL 1 0 0 0 1 0 1 0 1 2 3 3 2 1 9 2 2 3 1 8 3 3 4 6 16 9 9 9 9 2 3 4 5 TOTAL


Step 2:- Median of the Frequency thus obtained Option Nos.
1 2 3 4 5

1 2 9 8 16

Cumulative Frequency
1 3 12 20 36


N = 36
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Therefore, Median = Value of N/2th item Median = i.e. Value of 36/2th item Median = i.e. Value of 18th item Hence, 50% of the respondents have selected items below of equal to option no. 4 and the remaining 50% have selected items equal to or above option no. 4. Therefore, Value may lie between Option Nos. 4 & 5.

Step 3:- Probability testing of the Frequency thus obtained
P (Option 1) = 01/36 = 0.03 P (Option 2) = 02/36 = 0.06 P (Option 3) = 09/36 = 0.25 P (Option 4) = 08/36 = 0.22 P (Option 5) = 16/36 = 0.44

Conclusion:Hence, we can conclude from above probability testing that most of the responses i.e. 44% is for Option No. 5. Therefore, Workers / Sub-Staff Members “Strongly Agrees” that the Non - Statutory Health, Safety and Welfare initiatives taken by the Personnel Department is satisfactory.

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Chapter -7 Conclusion & Suggestions

The present study helped the researcher to understand the importance of Heath, Safety and Welfare Activities in Mazagon Dock Limited and in any other organization in the world with respect to both statutory benefits as per The Factories Act 1948 and non-statutory benefits given in addition by the organization to the employees and how a Human Resource/Personnel Management department plays an important role in conducting these activities smoothly by taking into consideration, the cost factor. Below are the conclusions which Researcher derived from the Analysis and Interpretation of the Data Collected:1) Officers:Page 61 of 114





a. For Statutory Benefits, Officers Agrees that they are satisfied by the Steps taken by Personnel Department. b. For Non-Statutory Benefits, Officers Neither Agrees or Nor Disagrees that they are satisfied by the Steps taken by Personnel Department. Staff Members:a. For Statutory Benefits, Staff Members Agrees that they are satisfied by the Steps taken by Personnel Department. b. For Non-Statutory Benefits, Staff Members Agrees that they are satisfied by the Steps taken by Personnel Department. Workers / Sub-Staff a. For Statutory Benefits, Workers / Sub-Staff Strongly Agrees that they are satisfied by the Steps taken by Personnel Department. b. For Non-Statutory Benefits, Workers / Sub-Staff Strongly Agrees that they are satisfied by the Steps taken by Personnel Department. As far as Researcher’s own observations in the Factory premises and Casual talks with different categories of workers / staff members / officers, it can be concluded that all the work done by Personnel Department of Mazagon Dock Limited is not-only satisfactory from the point of view of implementation but is also well-accepted among the employees of different class. The above can be considered as one of the biggest achievement of Personnel Department of Mazagon Dock Limited who is handling a total work force of more than 7000 employees working round the clock to achieve the ultimate goal of the Organization.

All the learning gathered during the course of study will ultimately help the researcher in future during his career as a Human Resource professional where he is going to implement what he has learnt in the organization.

Suggestions for the Organization:
1) Canteen for staff and worker is very unhygienic. They can be maintained in good condition as there is enough staff with the organization to ensure cleanliness. 2) As MDL spends a huge amount on hospitalization, medical facilities and staff to get the bills clear of employees, it can open and operate its own hospital for its large workforce on its campus or nearby area.
3) In workers & staff personnel department the timing allotted is very less i.e.

between 11.30 am to 12.00 noon, for workers to get their work done and they often have to go without their work getting completed, it can be increased to 1 hour i.e. between 11.00 am to 12.00 noon. Page 62 of 114

4) Canteen facility for Officers and Staff can be merged so that interdepartmental communication can be improved. 5) Administration, Personnel and Other Departments which are inside the Building should be made Air-Conditioned to improve the efficiency of the employees working there.

Suggestions for Future Researchers & Students:
In this particular research, the researcher has done a survey on all the items of The Factories Act 1948 in general and concluded the entire research on the basis of taking all the activities as a whole and then concluding on the Satisfaction Levels of the Workers/Employees. Future Researchers and Students can do a study on each topic separately i.e. Health or Safety or Welfare and try to establish a conclusion that actually due to which particular activity from the above mentioned activities run by the Management/Personnel Department of Mazagon Dock Limited are the workers actually satisfied with, and if not satisfied, due to which activity. This will help the organization to focus & improve on the Grey Areas from the activities i.e. Health or Safety or Welfare because of which workers/employees are not satisfied and improve the overall performance of provisions given in the Factories Act 1948 and the Organization as a whole.

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Chapter – 8
Extra Information Collected During Project Duration


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Groups Of Employees

OFFICERS Recruitment On All India Level

OPERATIVES Recruitment On Maharashtra State Level

Group C Group A Sr. Engineer to G.G.M Clerical Staff & Charge-hands

Group B Jr. Engineers (Internal Recruitment Process) Group D Operatives

Researcher has taken a Personal Interview of the A.G.M. (Div. HR & ER) and came to know about the following facts about the recruitment and selection process followed by Mazagon Dock Limited. As we can see in the Diagram of Groups of Employees in the previous page, the following Recruitment Process is Followed by MDL to select and place the candidates in that groups:Page 65 of 114

1) The recruitment process for Officers Level is conducted throughout India whereas Operatives Level is conducted locally on State Level Basis. 2) Reservations to be maintained for Officer Level vacancies are as follows:a. SC – 15% b. ST – 7.5% c. OBC – 27% d. Others Categories – 0.5% 3) Reservations to be maintained for Operatives Level vacancies are as follows:a. SC – 10% b. ST – 9% c. OBC – 27% d. Others Categories – 4% 4) In any case, the reservations should not exceed 50% of the available vacancies. 5) For any vacancies of any department, following procedure is followed:a. GM (Ship-Building Div) will forward Requisition to Director (Shipbuilding). b. Director (Shipbuilding) will forward (Corporate Personnel & Planning). Requisition to Director

c. Director (CP & P) will forward Requisition to Chairman and Managing Director (CMD) for approval. d. If CMD thinks fit to recruit more employees, forwards his approved letter to Director (CP & P) who in-turn instructs his department engaged for Recruitment and Selection who is headed by AGM (HR & ER) to start and fill the vacancies with appropriate candidates. 6) AGM (HR & ER) after getting approval prepares a draft advertisement and sends for approval to GGM (HR) who forwards it to Director (CP & P) for approval. 7) After getting approval from Director (CP & P), AGM (HR & ER) instructs Public Relations Officer (PRO) to publish the advertisement. 8) PRO sends the advertisement for publication to following agencies:a. Newspaper (Local & National) b. Postings on Company Website c. Employment Exchanges d. Special Employment Exchanges (Handicaps, SCs & STs etc.)

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Selection Process
Selection process for Officers:1) Minimum 50% is to be secured by the candidates at all levels of the interview. 2) Aptitude Test is taken in different centres of different cities; all over India. 3) After clearing Aptitude Test, candidates are called for Personal/Face to face interview in the company. Fares are paid to the candidates for coming to the company on producing all the documents. 4) Interview is of 40 Marks. 5) After clearing interview, Merit list is prepared as per the vacancies where 50% of Center’s Quota is given to reserved candidates and 50% for open candidates. 6) Accordingly, candidates are informed by E-Mail, Postal Mail, Publishing the list of shortlisted candidates in newspapers, company website, employment exchanges etc. 7) Shortlisted candidates are given date by which they have to submit the Police Verification Record (PVR) which can be obtained from local police stations. 8) After receiving the PVRs, candidates are intimated the dates of for Medical Examination. 9) Only after satisfying all the above criteria, candidates are issued Appointment Letter and joining date. 10) On the joining date, candidate has to go through 8 days (working days) Induction Training Program and Orientation program (If required). Selection process for Operatives:1) Minimum 50% is to be secured by the candidates at all levels of the interview. 2) Candidates are called for Personal/Face to face interview in the company on designated dates. Fares are paid to the candidates for coming to the company on producing all the documents. 3) Interview is of 40 Marks. 4) After clearing interview, Candidate has to go through stringent Trade Test as per selected trades i.e. electrical, welding, gas-cutting etc. 5) After clearing Trade Test, Merit list is prepared as per the vacancies where 50% of State Quota is given to reserved candidates and 50% for open candidates. 6) Accordingly, candidates are informed by E-Mail, Postal Mail, Publishing the list of shortlisted candidates in newspapers, company website, employment exchanges etc.

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7) Shortlisted candidates are given date by which they have to submit the Police Verification Record (PVR) which can be obtained from local police stations. 8) After receiving the PVRs, candidates are intimated the dates of for Medical Examination. 9) Only after satisfying all the above criteria, candidates are issued Appointment Letter and joining date.

On the joining date, candidate has to go through 8 days (working days) Induction Training Program and Orientation program (If required).

Care to be taken while preparing the Merit List:1) Quota system as per State or National Level is to be maintained at any cost. 2) When merit list is prepared, first 50% of the candidates are to be strictly considered as if they are in Open Category even if they are from reserved categories and the next 50% is to be given to the reserved category candidates. For e.g.:- Suppose 40 vacancies are to be filled and merit list is prepared according to the marks, then, a person who is of reserved category in first 50% of the seats i.e. in first 20 people, he has to be considered for the purpose of selection as a Open category candidate and the next 20 vacancies are to be filled on the basis of merit, strictly for Reserved Category candidates only. Interview Panel Consists of Following Members:1) Technical Representative. 2) Human Resource Department Representative. 3) SC/ST Representative. 4) Minority Representative. 5) Psychologist (Only for Group A & B Candidates)

What are Backlog Vacancies?
Backlog vacancies are those vacancies which the company was not able to fill up during the last year of selection process in the reserved category due to various reasons. For e.g.:Suppose in the Year 2008:Total Requirements were – 200 Selected Candidates were – 200 Page 68 of 114

Joined Candidates were – 180 Now, out of the selected candidates, following status is in front as on 1st January 2009:-


12 10 35

10 8 30

2 2 5

For the purpose of record keeping, on 31st December 2008, it is called as Unfilled Vacancies and on 1st January 2009, it will go in the Backlog records and company has to publish these vacancies as backlogs in different job advertisement sources to fill it in the year 2009.

Note:The vacancies of Group B Category are filled through internal recruitment process where a Group C candidate has to go through all the selection processes of officer level candidates.

8.2 TRAINING AND DEVELOPMENT Hierarchy of Training and Development Department

Chapter – 8 Training and Development

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Deputy General Manager (DGM) Training & Development

Chief Manager (CM) Training and Development Manager (M) Training and Development Assistant Manager (AM) Training and Development

There are following functions of the Training and Development Department:1) Conducting in-house training programs for:a. Operatives b. Staff c. Sub-Staff d. Officers (from AGM & Above) 2) Conducting external training programs for AGMs & above only in :a. IIMs b. ISB Hyderabad c. IITs d. National Safety Council e. Any other institutes which is important as per need 3) Conducting refresher courses – Depending on requirements. 4) Maintaining the Library in Management Development Centre and addition of updated and new books for use by the Officer Level Employees only. 5) Imply Training for Project Works.

General Procedure of Management Development Centre (MDC) for Imparting Training to employees is as follows:Page 70 of 114

1) Identification of Training needs:A standard list of training programs is circulated to all HODs/OICs along with request to forward the training needs of their officers/staff/operatives to MDC. Training plan is prepared on receiving of training needs from all HODs/OICs. Then training budget is prepared on the basis of Training Plan. Training plan and budget are tabled at the Steering Committee Meeting on training; accordingly training calendar is prepared for officers/staff/operatives. Management approval is obtained for training plan/calendar/budget. Training calendar is circulated to HODs/OICs. 2) Implementation of Training plan:Nominations from HODs/OICs are invited for specific training program. Training institutions and faculties of various in-house and external training programs are identified. MDC coordinates with internal and external faculties to smoothly conduct the training program. 3) Feedback and follow-up:The feedback received from participants after training program is intimated to the faculty for changes/improvement in the training course for implementation in future programs. Feedback is obtained from HODs/OICs for the training program which is of more than 5 days duration; 3 months after completion of training program.

Note 1:Need identification is done through following way:1) As per Annual Performance Report (APR), HODs/OICs suggests for the training program of officer/staff/operative working under him/her. 2) Officer/Staff/Operative himself/herself gives requirement of training for him/her to the HODs/OICs. 3) If the new project demands a training program.

Note 2:1) Training program is conducted as per ISO 9000 guidelines. 2) For calling external faculties, following procedure is followed:Page 71 of 114

a. Quotation is called from various training organizations. b. Evaluation of quotation is done by Steering Committee Members. c. Selection is done on the basis of requirement and offer in the quotation. 3) Different Audio-Visual Aids used in the training program are:a. LCD Projector b. Over Head Projector (OHP) c. Motivational/Technical Clips/Films d. Sound System e. Television f. Microphone etc. 4) The different types of training programs conducted are:a. Behavioral b. Technical c. Leadership d. Time & Stress Management e. Any other as per requirement.

8.3 QUALITY CIRCLE What is Quality Circle?
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A Quality Circle is a volunteer group composed of workers (or even students), usually under the leadership of their supervisor (but they can elect a team leader), who are trained to identify, analyse and solve work-related problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees. When matured, true quality circles become self-managing, having gained the confidence of management. Quality circles are an alternative to the dehumanising concept of the Division of Labour, where workers or individuals are treated like robots. They bring back the concept of Craftsmanship, which when operated on an individual basis is uneconomic, but when used in group form (as is the case with Quality Circles), it can be devastatingly powerful and enables the enrichment of the lives of the workers or students and creates harmony and high performance in the workplace. Typical topics are improving occupational safety and health, improving product design, and improvement in the workplace and manufacturing processes. The name Quality Circles received from PDCA circles later named as PDSA circles of Dr. W. Edward Deming.

PLAN Establish the objectives and processes necessary to deliver results in accordance with the expected output. By making the expected output the focus, it differs from other techniques in that the completeness and accuracy of the specification is also part of the improvement.

DO Implement the new processes. Often on a small scale if possible. CHECK Page 73 of 114

Measure the new processes and compare the results against the expected results to ascertain any differences. ACT Analyze the differences to determine their cause. Each will be part of either one or more of the P-D-C-A steps. Determine where to apply changes that will include improvement. When a pass through these four steps does not result in the need to improve, refine the scope to which PDCA is applied until there is a plan that involves improvement. PDCA was made popular by Dr. W. Edwards Deming, who is considered by many to be the father of modern quality control; Later in Deming's career, he modified PDCA to "Plan, Do, Study, Act" (PDSA) so as to better describe his recommendations. The concept of PDCA comes out of the Scientific Method. The scientific method can be written as "hypothesis" - "experiment" - "evaluation" or Plan, Do, and Check. A fundamental principle of the scientific method and PDSA, is iteration - once a hypothesis is confirmed (or negated), executing the cycle again will extend the knowledge further. Repeating the PDSA cycle can bring us closer to the goal, usually a perfect operation and output. In Six Sigma programs, the PDSA cycle is called "Define, Measure, Analyze, Improve, Control" (DMAIC). The iterative nature of the cycle must be explicitly added to the DMAIC procedure. PDSA should be repeatedly implemented in spirals of increasing knowledge of the system that converge on the ultimate goal, each cycle closer than the previous. One can envision an open coil spring, with each loop being one cycle of the Scientific Method - PDSA, and each complete cycle indicating an increase in our knowledge of the system under study. This approach is based on the belief that our knowledge and skills are limited, but improving. Especially at the start of a project, key information may not be known; the PDSA - scientific method - provides feedback to justify our guesses (hypotheses) and increase our knowledge. Rather than enter "analysis paralysis" to get it perfect the first time, it is better to be approximately right than exactly wrong. With the improved knowledge, we may choose to refine or alter the goal (ideal state). Certainly, the PDSA approach can bring us closer to whatever goal we choose.

Quality Circle Forum of India (QCFI)
Quality Circle Forum of India (QCFI) was founded in April 1982 as a non political and non-profit organization with Headquarters at Hyderabad to promote Quality Page 74 of 114

Circle concept in India by creating awareness and imparting skills in implementing Quality Circles in the organizations. Under any circumstances effort put for the development of people will not work unless they are made to THINK and understand the necessity to use their own ability for the self and mutual development. There is an urgent need for participation, involvement and collective learning of people. Hence the promotion of Quality Circle which has this basic aim in its concept is needed for country wide propagation. Certain experimental effort by QCFI to promote this concept in villages has shown tremendous results. QCFI has 20 Chapters spread over the country in the Northern, Eastern, Western and Southern zones catering to the needs of Quality Circle promotion and training of people in their respective areas.

Quality Circles in Mazagon Dock Limited
Mazagon Dock Limited facilitates promotion of Quality Circles in different areas of production, design, quality control, cost-cutting etc. through a steering committee which consists of Coordinators who gives services of like forming of team, providing facilities, reporting the results to the management etc.

Following Problem Solving Technique is Used in Mazagon Dock Limited
1) Identification of problems

This is a very important step. In this step, problem related to work are identified be the team and are listed down in a Lehman order. 2) Selection of a problem After list of problems are defined, team needs to select the most important problem to be solved first, then second, then third and so on in a sequence. For this ABC Analysis is done to rate the problem. What is ABC Analysis? Analysis of a range of items which have different levels of significance and should be handled or controlled differently. It is a form of Pareto analysis in which the items (such as activities, customers, documents, inventory items, sales territories) are grouped into three categories (A, B, and C) in order of their estimated importance. 'A' items are very important, 'B' items are important, 'C' items are marginally important. 3) Definition of Problem Now, most important task is to define the problem which is selected as a most important and critical to be solved first. In this step, problem is defined in its clear sense by looking at the Gantt chart which is a type of bar chart that Page 75 of 114

illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts also show the dependency (i.e., precedence network) relationships between activities. Gantt charts can be used to show current schedule status using percent-complete shadings and a vertical "TODAY" line. Therefore, the exact location of the problem is important to solve it from the root. Gantt chart helps to locate the elements where problem can occur as it has the entire project schedule, timings and start and finish dates of individual items of production process. 4) Analysis of Problem In this step, there are to sub-steps:a. Identification of Causes This is done using Cause & Effect Diagram tool in which Fish Bone type diagram is drawn. The Fishbone diagram is one of the many management tools created by Dr. Kaoru Ishikawa. Ishikawa-san was thirty years old when the two nuclear bombs dropped on Japan's major metropolitan areas. Working in the Kawasaki shipyards, Dr. Ishikawa witnessed Japan's long road toward recovery and rebuilding which required innovation, creativity, and lots of very hard work. This diagram helps in Learning, how to leverage the power of the Fishbone diagram to facilitate brainstorming, root cause analysis, and fishbone problem solving. Creating Fishbone Diagrams
While drawing the Fishbone chart, care is taken to have the inner branches meet a horizontal straight line, called the "spine" of the chart. The statement of the problem - or the effect - is to the right of the spine inside a box, which makes it look like the head of a fish. When finished, the entire map resembles a fishbone.

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The mandate for the collaborating team, when they sit down across the table to draw the Ishikawa diagram, is to focus on why the problem occurs. There is no effort to look at the history or symptoms of the

problem, or anything else that might digress from the intent of the session. When the team comprises members from different departments or functions, each of them provides their own specialist view about why the problem (the "fish-head") occurs. It might be discovered through this brainstorming session that there are causes common across two or more departments or functions. Perhaps that some causes permeate the entire organization. Thus, in one single snapshot, the top management gets to see exactly why the problem is likely to be occurring. Usually, this is how a typical Fishbone analysis scene pans out:
• •

First, a large writing area is put up in the center where everybody can see it. This writing area could be a flipchart or a whiteboard. The problem that needs to be addressed is defined. All team members have to be very clear about what exactly the problem is. The problem statement is described clearly and succinctly in the fish head portion. To set the ball rolling and to ensure logical control over the brainstorming process, the following fundamental blocks are listed to begin with: manpower, machines, methods, materials and environment - in case of a problem related to manufacturing; and Page 77 of 114

equipment, policies, procedures and people - in case the problem facing the team relates to administration and service. Of course, when listing them, it should be clarified that these blocks are suggestive and not exhaustive. These blocks along with any other identified are major branches connecting to the spine. Each member of the team then gets a chance to come up with what they think is the cause of the problem. Per turn, only one cause may be contributed by every member, else they simply "pass" if they can't think of any cause in any particular round. Each cause thus identified is then "hung" on the branch of the category that it belongs to. For example, if "Moisture Content" is a major cause, then "Dryer's RPM" is a cause that is hung on to moisture content. In case the cause happens to be the cause of another cause which is already present, then it must be hung on the branch of the latter. For instance, "Materials" is a major branch that goes to the spine of the problem of "Recurrent pipe leakage". "Defective measurement tools" is a branch that connects to materials. "Lack of suppliers" or "Substandard supply of tools" is a cause that hangs on to defective measurement tools.

It is also possible that one cause may be placed on several branches. • The brainstorming session ends when a time comes where everybody passes. b. Finding out the Root Cause The resulting Ishikawa Diagram is then analyzed by the senior management to draw up a plan of action to root out the causal factors, so that the root causes can be solved. This is frequently done, by taking the enumerated causes, and measuring their occurrence in various processes. After recording these data for a specific period, the results are examined in a Pareto Chart, wherein the 80/20 rule makes it apparent where to invest the appropriate organizational effort to reduce the unwanted effects so analyzed in this process (or perhaps to increase intended positive effects). For e.g. 20% of people are doing 80% of work & vice versa, hence these 20% of people are over-working and are in stress which may result in ill-health for them and also affect their productivity in near future. Therefore, they are the 80% of people who are not doing their duties effectively are the root cause. 5) Data Analysis In this step, the data so acquired after the analysis of the problem are listed down and responsibility is fixed on the item of the root cause. Page 78 of 114

6) Development of Solution After the root cause analysis and the responsibility fixation, solution for the problem is developed using Brainstorming session in which team sits together and give there solutions through discussions/debates and mutual agreements at the end of the session. The conclusion is sorted out on the basis of brainstorming and mutual agreement of all the members of the team. 7) Forcing probable resistance This step can attract resistance from different groups of people on whom, the solution is going to affect directly. Therefore, people are made aware of the solutions to be implemented well in advance is the key for facing less or no resistance. This can be done through training sessions, effective supervision, confidence building exercise etc. 8) Trial Implementation This is the step where, solution is actually implemented on trial basis on small scale to check the accuracy of the result expected as was considered. 9) Regular Implementation After successful completion of trial implementation and checking the accuracy of expected results, Solutions can be implemented on regular basis. 10) Follow up & Review Even if the solutions are implemented successfully and results are as per expectation, follow up & review is important to ensure that the solution is not benefiting for short-term but is a long-term success.

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8.4 Memorandum of Settlement (MoS)
Memorandum of Settlement is a legal document as per the Industrial Disputes Act 1947 wherein one or more parties or one or more unions and the management of the organization sits together to arrive at a settlement of various industrial disputes like, wages, leaves, cash & non-cash benefits etc.

MoS of Mazagon Dock Limited
The features of MDL’s MoS are given below:1) MDL revises MoS every 5 years. 2) MoS applies only to the categories of Operatives, Clerical, Technical and SubStaff on IDA and MDL DA Pay Pattern.
3) There is a unique system of Bargaining Council in which

Union Representatives and Management Representatives sits together in an independent room and discuss the issues related to any of the industrial disputes to arrive at a settlement to change or amend the MoS.
4) The current MoS studied by the researcher was prepared on

October 20, 2005 and which has a period of settlement between 1st October 2003 till 30th September 2008 and was in place till the study was going on.
5) There are total of 11 unions in Mazagon Dock Limited of

which 8 unions are the negotiating unions with the management for preparation and amendment of MoS. The names of the Unions are given below:1) Association of Engineering Workers (AEW) 2) Dockyard Employees Union (DEU) 3) Bhartiya Kamgar Karmachari Mahasangh (BKKMS) 4) Bhartiya Kamgar Sena (BKS) Page 80 of 114

5) Mazagon Dock Kamgar Ekta Union (MDKEU) 6) Mazagon Dock Karmachari Sansad (MDKS) 7) Engineering Workers Union (EWU) 8) Mazagon Dock Clerical, Technical & Sub-Staff Association (MDCTSSA)

1) Constitution of India is supreme and it is above all the powers i.e. judiciary power, executive power and legislative power. 2) Article 14 of Constitution of India provides for the equality before law. This is one of the fundamental rights stipulated in Chapter – III of the constitution. 3) Another Article 21 which is also a fundamental right provides that no person shall be deprived of life, liberty except without proper procedure of the law. The proper procedure of the law is nothing else but the Principle of Natural Justice. 4) The principle of natural justice thus originated from the Constitution of India and its implementation in our day to day life is based on the various decisions of the courts and the executive orders passed from time-to-time. Following are the principles of natural justice:a. The person should have reasonable notice of charges leveled against him. b. The person must be given reasonable opportunity of being heard in his defense. c. The reasonable opportunity to be heard by independent person not connected with the incident. d. The authority who is hearing the case must act in good faith and should act arbitrarily. 5) How the Principles of Natural Justice applied in the organization? a. Through Certified Standing order b. If Certified Standing orders are not available, then, Model Standing order. c. Agreement or Settlements. d. Administrative orders or circulars. 6) Thus a person should have fair opportunity of producing defense and there should be an orderly course of procedure. This means for taking any action against a person or an employee in the organization, proper inquiry is to be conducted. No Act stipulates the procedure and the manner in which the Page 81 of 114

inquiry is to be conducted. But there are certain principles and procedures, which evolved from various decisions of the courts, which states the manner in which the inquiry is conducted so that the person gets proper justice. 7) A person should know the material, which is sought to be used against him. This is one aspect of principle of natural justice. A person cannot defend himself unless and until he knows the specific charges framed against him and the documentary evidence is likely to be used against him.

The report of the particular incident is an important document for initiating disciplinary action against an employee. The report should be specific and generally regarding violation of the rules and regulations of the company. The report should contain following details:1) Name, Designation, Grade against whom the complaint is lodged. 2) Location or the place where the incident took place. 3) The date, time and nature of the incident. 4) If an employee has committed irregularity in his work then narration of such irregularity. 5) In case of theft, the following additional information is required:a. Description of the material.

b. Cost of the material. c. The certificate showing that the material belongs to company.
d. The identification marks put on the material by the witnesses when the

material in confisticated and it should be sealed in presence of witnesses and to obtain signatures on such envelope or box. e. If the material is in large quantity, then it should be kept in a container box. The container box should be sealed in presence of witnesses and the description of the material should be recorded and signed by the witnesses present while keeping the material in the box or container. f. In case of currency notes, confisticated they are to be counted with denomination and their numbers are to be noted in the report. It is important that before issuing charge-sheet to an employee, the disciplinary authority should apply his mind. He should consider following points before issuing such charge-sheet:1) That the act constitutes misconduct stipulated in the standing orders. 2) The act may be violation of any circular or official orders of the management. 3) There is sufficient documentary evidence for issuing the charge-sheet. 4) This evidence is to be supported by independent witnesses during inquiry. Page 82 of 114

Charge-sheet is a statement indicating the misconduct, the charges leveled against charge-sheeted workmen as per standing orders, the venue of the inquiry, date and time, name of the inquiry officer, etc. The charge-sheet is generally divided into four parts:1) The first part contains – name, designation, department of the charge-sheeted

2) The second part contains – the incidence for which the charge-sheeted

workman is charge-sheeted. 3) The third part contains – description of charges leveled against charge-sheeted workman i.e. Misconduct under Certified Standing Orders. 4) The fourth part contains generally venue, time and date of the inquiry.

Suspension pending inquiry is generally conducted when:1) The charge-sheeted workman is likely to tamper with the evidence. 2) The charge-sheeted workman is likely to influence the witnesses. Suspension order can either be issued by disciplinary authority or an officer authorized to issue suspension order.

The suspension allowance is paid to the charge-sheeted workman for his survival during the period of suspension as he is not paid wages. The suspension allowances are not wages i.e. no deductions towards Provident Fund or any other items to be made from the suspension allowance except ESI contribution. If the charges leveled against charge-sheeted workman are not proved and he is exornated then full wages are to be paid minus the suspension allowance paid during suspension period. Generally the suspension allowance is paid as follows:First three months – 50% of the wages Beyond three months – 75% of the wages Page 83 of 114

Provided that the inquiry should not be adjourned because of the actions of the charge-sheeted workman.

1) Preventive Suspension 2) Punitive Suspension In the first case, i.e. Preventive Suspension, the suspension allowance is paid for the preventive suspension @ mentioned above. In the second case, i.e. Punitive Suspension, the suspension is punishment where no suspension or wages are paid for the suspension period. The endorsement of such suspension is made in the personal record of the charge-sheeted employee. The suspension allowance must be paid to the charge-sheeted workman during the suspension period in case of suspension pending inquiry for his survival. If the suspension allowance is not paid to a charge-sheeted workman then, it will vitiate the inquiry.

The Inquiry Officer is to be appointed by disciplinary authority to conduct the inquiry and should be always superior to the person to whom the charge-sheet is issued. Inquiry Officer should be an independent person and he should not be directly associated with the incident. Mere personal knowledge of the incident does not make a person disqualify from being inquiry officer. The officer holding preliminary inquiry can be Inquiry Officer. The officer, who had conducted the inquiry against the same person or charge-sheeted workman and held him guilty earlier, cannot disqualify from being an Inquiry Officer. An outside expert can also become an Inquiry Officer.

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If the charge-sheeted workman wants to take objection for the appointment of the Inquiry Officer, he should take the objection, before the inquiry proceedings starts, explaining the reason for it.


Domestic Inquiry

Judicial Proceedings

The person authorized or appointing In case of judicial proceedings, the authority generally appoints Inquiry judge is generally appointed as per Officer. provisions of statue. No specific qualifications prescribed for Inquiry Officer. are Specific qualifications are prescribed in the statue are required.

2 3

Provisions of the Evidence Act are not The provisions of the Evidence Act strictly applied in case of domestic are strictly applied to judicial inquiry. proceedings. The inquiry officer cannot award The judge in case of judicial punishment to the charge-sheeted proceedings awards the punishment. workman. He has to submit his report to disciplinary authority. The inquiry officer does not frame the In case of judicial charges but disciplinary authority generally the judge frames them. charges. proceedings, frames the



1) In case of domestic inquiry, generally, it is a duty of prosecution to prove the charges leveled against charge-sheeted workman. The management representative has to produce evidence either documentary or witnesses in support of the charges leveled against the charge-sheeted workman. These witnesses are subjected to cross-examination by defending workman. 2) When the evidence is produced against charge-sheeted workman, it is the duty of charge-sheeted workman or defending workman to produce counter evidences to disprove the charges. Thus at this stage the burden of proof shifts from management representative to defending workman. 3) It is duty of the management to provide all assistance required by defending workman for defense of the workman. 4) It is always suggested that defense side should always produce the evidence against the charge-sheet. The evidence produced at a later stage in his defense Page 85 of 114

may be considered as a weak witness. The reason for this is that the management witnesses cannot be examined regarding the evidence given by charge-sheeted workman at later stage. Industrial Employment (Standing Orders) Act 1946 provides for certified standing orders. This act is applicable to the organization where more than 100 workmen are employed. In case Certified Standing Order is not available, Model Standing Order is applicable to the organization. MAZAGON DOCK LIMITED has a certified standing order in place which is certified by the Commissioner of Labour and Certifying Officer, Mumbai under Section 5 of the Industrial Employment (Standing Orders) Act 1946 for all workmen other than hourly or daily rated workman employed in the organization. This certified standing order is in force from 14th March 1963 and shall apply to all workman other than hourly or daily rated workman employed in the establishment.

Misconduct is nothing but the acts on the part of the employee, which are punishable, if proved. The Standing Orders are illustrative but not exhaustive. The meaning of this is that, certain acts, though they are not included in the Standing Order, they are subject to inquiry and disciplinary actions. E.g. - Proxy punching. This specific act is not covered under standing orders, but amounts to indiscipline and dishonesty in connection with employer’s business. As per Section 22 of the Certified Standing Order of Mazagon Dock Limited, following acts or omissions on the part of workman shall amount to Misconduct:1) Insubordination 2) Going on Illegal Strike 3) Theft, Fraud of Dishonesty 4) Taking or Giving Bribe 5) Habitual Absenteeism 6) Late Attendance – For more than four days in a month 7) Habitual Breach of any Standing Orders 8) Collecting or Distributing Money 9) Engaging Trade within Organization 10) Drunkenness, Riotous or Disorderly Behaviour 11) Subversive of Discipline and Good Behaviour Page 86 of 114

12) Neglect of Work 13) Habitual Breach of Rules in connection with running and maintenance of the department 14) The act for which the fine is imposed under Payment of Wages Act. 15) Collection of Funds for the Union without permission of the management. 16) Damage of the company’s property due to negligence or willful act. 17) Organizing meetings except with proper permission 18) Disclosure of the information to any un-authorized person 19) Gambling in premises and precincts of the company 20) Smoking and Spitting 21) Failure to observe safety rules 22) Distribution of any written material or displaying it in the premises of the company 23) Refusal to accept charge-sheet 24) Double employment as per the provisions 25) Sleeping during working hours 26) Interference with record or falsification or destruction of record 27) Conviction by any fault for criminal offence and moral torpid 28) Doing private business.

Evidence by Prosecution 1) IO can ask preliminary questions. 2) He can ask the clarification on certain matters. The inquiry can be conducted in vernacular language but it is not necessary. It can be conducted in English, but the inquiry proceedings should be explained to Charge-sheeted Worker (CW) in the language understood by him. 3) CW cannot insist the order in which the witnesses are to be called. 4) The witness produced in the inquiry should confirm the relevant material evidence produced in support of charge-sheet. 5) All the concerned present should sign each page of the inquiry proceeding documents. 6) One witness cannot be examined in presence of other witness. 7) IO is not supposed to correct the statement of the witnesses produced, but it is a duty of either Management Representative (MR) or defending worker to correct statement, if any, during examination in chief. Page 87 of 114

8) While the Examination in chief of Management Witness, MR cannot ask leading questions to his witness. The question means the answer of the question should not come in the form of Yes or No. This means MR should not suggest the answer to his witness during inquiry proceedings. Evidence by Defense 1) Defending workman can request IO to summon the witnesses in his defense. 2) He can request IO to ask MR to produce certain important documents for defending CW. 3) IO cannot compel certain witnesses to present and depose statements during inquiry. Like judge of the court, IO does not have power to summon the witnesses from outside. He can however request outside experts to come and depose evidence on request of MR or CW. Cross-examination of hostile witness is allowed. For this purpose the witness produced either by MR or defending workman is to be declared hostile by the parties producing the witness and request IO to allow cross-examination of his own witnesses who have turned hostile. In case, any new point arises during defense proceedings, in that case the MR may request IO to allow him to produce next witness for getting clarifications on certain points raised by defending workman. However, this witness is also subjected to crossexamination. Inspection of the spot of the incident can be carried out by IO. However, it should be in presence of all concerned. a. IO should record his observation during inspection. b. He can ask certain questions to the parties present and get clarifications.

1) Details of the employee. 2) Case in short. 3) Documents produced by MR and Defending Workman. 4) Summary of the Proceedings. 5) Analysis of the Evidence. 6) Findings of the IO Page 88 of 114

1) The IO should not use his personal knowledge while evaluation of the evidence. 2) While considering evidence, probabilities must be considered. 3) Hearse evidence is not valid. 4) Direct and circumstantial evidence in the inquiry.
5) The departmental officer should be given always more weight-age, as he is

well conversant with the workman of the department. 6) The charges are not deemed to be proved merely on the weakness of the defense witnesses. 7) The confession of the court accused cannot be used against a CW. 8) The weight-age of the witnesses should not be depending upon the status of the witnesses. 9) It is not necessary that all the witnesses should support the charges. 10) The reason should be given for final decision of the IO. 11) The consideration of IO should not be based on certain presumption. 12) IO should not consider the facts, which are not on the record. 13) IO should not consider any event, which subsequently happened. 14) IO should not omit any form of consideration of any evidence.

1) IO should not decide the penalty. 2) IO should not give findings outside the scope of inquiry. 3) IO can hold guilty, the charge-sheeted workman, for all charges or for some of the charges. 4) He may or may not hold charge-sheeted workman guilty of any / all the charge/s.

1) Punishing authority should apply his mind on record while awarding the punishment. 2) He may accept or reject some of the findings of the IO. 3) He is not bound to discuss any matter with IO.

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4) He should not give the punishment for the charges, which are not in the charge-sheet. 5) Mere consulting outside expert does not vitiate the inquiry. 6) If he defers with IO in favour of CW, he need not give reasons for the same.
7) If punishing authority is of the opinion that the inquiry is not properly

conducted then he has got every right to Denavo Inquiry.

1) Warning 2) Severe Warning 3) 2-Day Suspension. 4) 4-Day Suspension. 5) Dismissal from the services. Gravity of Punishment depends upon the type of Misconduct shown by the worker/employee in the Organization.

Note:Any Misconduct/Crime committed outside the company premises are subject to Civil or Criminal Proceedings as per court of law. Only the Misconducts committed on the premises of the company are subject to Domestic Inquiry. If any Criminal act committed by employee, is heinous in nature, is subject to Criminal Proceedings in the court of law during which he will be on suspension period till the inquiry proceedings are on. If a sentence is awarded to the employee of Mazagon Dock Limited, he will be dismissed from the services and whatever dues he owes in the company will be paid to him / or his legal heir as soon as he is dismissed. If the case is dismissed and the results are in favour of the employee, then he will be taken in the regular employment and all the due wages during suspension period will be immediately paid to him.

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There are two categories of working class in MDL. These categories are:1) MDL DA Pattern:- Those joined before 1982 These workers and clerks joined MDL before 1982 when the concept of Textile DA was prevalent and the Labour Commissioner of Bombay (now Mumbai) used to declare the DA as per the Bombay Consumer Price Index (BCPI) from time to time to ensure that the worker class is not affected by the rising inflation. Still, in some of the organizations including Mazagon Dock Ltd., this type of DA Pattern is prevalent. Labour Commissioner of Mumbai still declares the Consumer Price Index of Working Class in Mumbai on the basis of which the companies declares the DA.
2) IDA Pattern: - Those joined after 1982 till 1998

The workers joined after 1982 were taken on the Industrial Dearness Allowance (IDA) pattern which is based on All India Consumer Price Index (AICPI). This type of Dearness Allowance is applicable to Central Public Sector Enterprises as announced by the Government of India from time to time. It is to be noted that MDL stopped recruitment of workers & clerks who falls in Group C & Group D categories from the year 1998 as part of the major policy restructuring of the organization. PAY STRUCTURE OF IDA EMPLOYEES There are 10 grades in this category which are as follows:1) ID1 – Unskilled 2) ID2 – Semi-Skilled Gr. I 3) ID3 – Semi-Skilled Gr. II 4) ID4 – Semi-Skilled Gr.III
5) ID5 – Skilled Gr. I

6) ID6 – Skilled Gr. II 7) ID7 – Highly Skilled 8) ID8 – Special Grade 9) ID9 – Mistry / Special Grade Engine Driver 10) ID10 – Charge-hand Page 91 of 114

The Basic Pay structure starts from as low as Rs. 2575/- to as high as Rs. 6555/- per month for different grades of employees with ID1 grade employee at the lowest level of pay and ID10 grade employee at highest level of pay. Dearness Allowance (DA) 1) The DA is paid on the Industrial DA pattern, applicable to Central Public Sector Enterprises as announced by the Government of India from time to time.
2) DA installment is released four times in a year i.e. 1st January, 1st April, 1st

July, and 1st October. 3) Currently it is calculated with respect to All India Consumer Price Index (AICPI) Fitment Allowance (FA) The employee is paid a fitment benefit as detailed below: Sr. Range of Basic Pay No. 1 2 3 Rs. 2350 – 3499 p.m. Rs. 3500 – 4599 p.m. Rs. 4600 & Above p.m. Fitment Benefit (Basic Pay + DA) x 10% - 325 (Basic Pay + DA) x 8% - 325 (Basic Pay + DA) x 6% - 325

Note:After fixation, if it is found that Pay Fixation of Junior Employee is more than the Senior Employee (in the same scale), Senior Employee will be given equivalent Basic of his Junior Employee so that Junior Employee will not get more salary that his senior employee. Annual Increment
1) The annual increment is done on 1st of October every year.

2) An employee is eligible for annual increment only if he has been paid for minimum of 240 days in a year.
3) Calculation of 240 days is done as per the provisions of the Factories Act

1948, i.e. the days of PL/SL/CL availed, paid holidays, optional holidays, weekly holidays, compensatory off days; sickness days as certified by the Chief Medical Officer (CMO) shall be included.

House Rent Allowance HRA is paid on monthly basis @ 30% of the Basic Pay. City Compensatory Allowance (CCA) Page 92 of 114

CCA is paid on the running basic pay which is based on the classification of cities as notified by Government of India at the following rates:Sr. No. 1 2 3 4 Basic Pay per Month Below Rs. 4000 p.m. Rs. 4001 – Rs. 5250 p.m. Rs. 5251 – Rs. 6499 p.m. Rs. 6500 & Above Amount (In Rs.) 90 125 200 300

Education Allowance Education Allowance of Rs. 100/- per month is paid prospectively to an employee for education of their children. Medical Allowance Those employees who are not covered under the ESI Act & Scheme is paid Medical Allowance at the rate of Rs. 100 per month towards outdoor medical treatment. PAY STRUCTURE OF MDL DA EMPLOYEES There are two categories of employees in this type of Pattern:1) Operatives a. W1 – Skilled Gr. I b. W2 – Skilled Gr. II c. W3 – Highly Skilled d. W4 – Special Grade e. W5 – Mistry / Special Grade Engine Driver f. W6 – Charge-hand Gr. I g. W7 – Charge-hand Gr. II 2) Clerical & Technical Staff a. A1 – Sub-Staff b. B1 to B7 – Clerical Staff c. C1 to C5 – Technical Staff d. D1 to D7 – Storekeeper e. E1 to E5 – Medical Staff The Basic Pay structure starts from as low as Rs. 125/- to as high as Rs. 2320/- per month for different grades of employees with Grade 1 employee at the lowest level of pay and Last Grade employee of that particular category at highest level of pay. Dearness Allowance (DA) Page 93 of 114

1) The DA is paid on the MDL DA pattern, applicable to the Industries in Mumbai Division as announced by the Labour Commissioner of Mumbai from time to time.
2) DA installment is released four times in a year i.e. 1st January, 1st April, 1st

July, and 1st October. 3) Currently it is calculated with respect to Mumbai Consumer Price Index (MCPI). Annual Increment
1) The annual increment is done on 1st of October every year.

2) An employee is eligible for annual increment only if he has been paid for minimum of 240 days in a year. 3) Calculation of 240 days is done as per the provisions of the Factories Act 1948, i.e. the days of PL/SL/CL availed, paid holidays, optional holidays, weekly holidays, compensatory off days; sickness days as certified by the Chief Medical Officer (CMO) shall be included. House Rent Allowance (HRA) The HRA is paid as per the basic pay given in the below Slab:1) Rs. 101 to Rs. 200 p.m. – Rs. 600 p.m. 2) Rs. 201 to Rs. 300 p.m. – Rs. 650 p.m. 3) Rs. 301 to Rs. 400 p.m. – Rs. 900 p.m. 4) Rs. 401 to Rs. 500 p.m. – Rs. 1000 p.m. 5) Rs. 501 to Rs. 600 p.m. – Rs. 1050 p.m. 6) Rs. 601 to Rs. 700 p.m. – Rs. 1100 p.m. 7) Rs. 701 to Rs. 800 p.m. – Rs. 1150 p.m. 8) Rs. 801 to Rs. 900 p.m. – Rs. 1200 p.m. 9) Rs. 901 & Above p.m. – Rs. 1300 p.m. Special Allowance Special Allowance of Rs. 75/- per month is paid to all employees to meet the miscellaneous and incidental expenditure. Medical Allowance The employees who are not covered under ESI Act and Scheme is paid Medical Allowance of Rs. 500 per month, towards outdoor medical treatment. COMMON ALLOWANCES FOR IDA/MDL DA EMPLOYEES Page 94 of 114

Following are the common allowances paid to the employees:Transport Subsidy For the IDA employees : - Rs. 350 /- per month Basic Rs. 151 & Above – Rs. 800 p.m. Washing Allowance The employees who are issued uniforms are paid a washing allowance of Rs. 60/- per month as washing allowance. Leave Travel Allowance (LTA)
1) LTA is paid @ Rs. 3600/- per calendar year commencing from 1st January. It

For the MDL DA employees: - Basic upto Rs. 150 – Rs. 650 p.m.

can be availed before proceeding for Privilege Leave (PL) of a minimum continuous period of 5 days in a year. 2) LTA can be availed in each calendar year or can be accumulated and availed in the second calendar year after which the amount lapses.

Milk Allowance Milk Allowance is paid at the rate of Rs. 5/- per working day to all the operatives of the company prospectively. Food Allowance Employees who are deployed on out-door duty on Company’s work outside the Company’s Premises during the stipulated lunch period and thus are not able to avail of the subsidized lunch provided by the company at any of its unit canteens are paid Food Allowance at the rate of Rs. 15/- per day prospectively. Also, employees who are deployed at the production yards of the Company where there is no canteen facility available are paid Food Allowance @ of Rs. 15/- per day.

Third Shift Allowance Employees detailed on Third Shift are paid third shift allowance @ of Rs. 5/- per shift working. This does not attract DA. Calculation of Overtime (OT) The formula for calculating OT is as follows:Page 95 of 114

OT = (Basic + DA)/208 Note: - Where, 208 means 26 (no. of days in month) x 8 (months in a year) Deductions Contribution to Provident Fund (PF) The PF is calculated from 12% till 30% on the DA+ Basic+ Personal Allowance. 12% of the basic 8.33% Pension Fund 3.67% Provident Fund

For Clerks/Operatives, company’s contribution has a maximum limit of Rs. 6500/p.m. For Officers, company’s contribution has no such maximum limit. Whatever is the Officer’s contribution, company contributes the equivalent amount. Gratuity Gratuity is given to the employee as per the Gratuity Act, after the retirement. Currently the gratuity is with the LIC as the company has invested in fund and certain interest is received on the same which the company saves separately. Gratuity is given only to the permanent employees. The Maximum limit to be paid as per the Gratuity Act is Rs.3,50,000/-. Gratuity is also paid if employee leaves the organization before his retirement. The only criteria for payment of Gratuity if the employee leaves before retirement is that he should have completed atleast 5 continuous years of service in the organization. Gratuity is calculated as follows:Gratuity = (Basic + DA) x 15/26 x No. of yrs. completed by the employees in the organization. Employee State Insurance Act (ESI Act) As per the Employees State Insurance Act of the State Government, if the Net Salary of Employee is less than Rs. 10000/- p.m., he is eligible for the cover under the provisions of ESI Act. Employee’s monthly contribution the Employee State Insurance Corporation (ESIC) is Rs. 1.75 % of the Basic Pay and Company’s monthly contribution is @ 4.75% of the Employee’s Basic Pay. Page 96 of 114

Profession Tax (PT) If employee’s salary is above Rs. 1,00,000/- per month, then PT is deducted at the rate of Rs. 2500/- in a year. Every month, Rs. 200/- is deducted from the salary except in February when Rs. 300/- is deducted to make a tally of Rs. 2500/- in a year. Income Tax (IT) As per the Current Provisions of Income Tax Act, for Deductions from the Salary for the financial year 2008-2009, following Slab is used:SLABS DEDUCTIONS Upto Rs. 1,50,000/No Deductions Rs. 1,50,001/- to Rs. 3,00,000/10% Rs. 3,00,001/- to Rs. 5,00,000/20% Rs. 5,00,001/- & 10,00,000/30% Rs. 10,00,001/- & Above 40% Compulsory Standard Deduction Rs. 1,50,000/Education Cess @3% on Income Tax Payable

Other Deductions/Additions 1) Cooperative Credit Society 2) Consumer Society 3) Wage Advance 4) Leave Advance 5) Postal Link Insurance 6) HDFC Bank Loan 7) IT Recovery 8) IT Refund 9) Excess Pay Recovery 10) Postal Savings Scheme 11) Housing Subsidy 12) Court Recovery 13) ESIC Deductions

Other Benefits 1) Bonus – if income is less than Rs. 10000/- monthly. 2) Annual Performance Linked Incentive Scheme (APLIS) which is based on Profit, Individual Score in the appraisal, Category of Employees and Product Portfolio in which employee is working. 3) Productivity Linked Incentive Schemes (PLIS) for Operatives who achieve the targets of Production Set for them in a month or exceeds that target. 4) Leave Encashment (LE) :Page 97 of 114

LE = (Basic + DA/30) x No. of days of Leave to be encashed. 5) Festival Advance of Rs. 6000/- is given yearly to all the Operatives & Clerks. LEAVES Casual Leave (CL) 12 days CL in a year. Privilege Leave (PL) Employees granted PL at the rate 1 day for 11 working days i.e. 30 days PL for 11 months. PL accumulated upto 240 days. Sick Leave (SL) Employees covered under ESI act, are entitled to 15 days half pay sick leave in a calendar year. Employees not covered under ESI Act, are entitled to 15 days or full pay SL. SL may be accumulated upto 30 days. Accident Leave (AL) Employees not cover under ESI Act and schemes will be entitled to accident leave. Absence more than 7 days- 50% of wage or salary will be paid. Absence more than 7 days but less than or equal to 30 days- 75% of wage or salary is paid. Absence more than 30 days- 100% wage or salary is paid from 1 st day subject to a maximum of 3 months. Paid Holidays 12 working are closed holidays and 8 national holidays.

Following record is kept by Personnel Department about an employee in the Employee’s Personal File:1) Application for the Employment mentioning the post applied for which contains:a. Resume b. Previous Employment Details (If any) c. Employer Certificate (If any) Page 98 of 114

d. Declaration to follow Rules & Regulations of the organization. e. Photos (Self & Dependent Family Members) 2) Appointment Letter for Temporary Employment 3) Service Record for Temporary Employment 4) Appointment Letter for Employment on Probation for 6 Months 5) Service Record of Probation Period 6) Medical Certificate for fitness of an employee to be taken on Permanent Roll 7) Application for Permanent Employment 8) Interview Report 9) Character Certificate from School attested by a Gazatted Officer 10) Date of Birth Certificate 11) Nominations for P.F., Gratuity & Other Benefits. 12) Yearly Attendance Record (Month-Wise) 13) Promotion Certificate 14) P.F., Gratuity etc. forms 15) Housing Loan Application & Interest Subsidy records 16) Sanction Letter for interest subsidy 17) Pay Hikes report 18) Leave Records 19) Complaints about employees by co-workers bosses & family members 20) Records of disciplinary actions (if any) as per the Industrial Disputes Act 1947 21) Any other records, if felt by personnel department to be kept in Personal File of an employee.

Researcher used Personal Interview Technique in which face to face interview of the Office Superintendent is taken who is responsible for implementation and record keeping in the Promotion Cell. Since, Mazagon Dock Limited due to its various engineering requirements for Ship Building has to follow a Multi-Trade system where different Groups & Grades of employees work together to achieve the production targets. The 10 grades in IDA Pattern are as follows:Page 99 of 114

1) ID1 – Unskilled 2) ID2 – Semi-Skilled Gr. I 3) ID3 – Semi-Skilled Gr. II 4) ID4 – Semi-Skilled Gr.III 5) ID5 – Skilled Gr. I 6) ID6 – Skilled Gr. II 7) ID7 – Highly Skilled 8) ID8 – Special Grade 9) ID9 – Mistry / Special Grade Engine Driver 10) ID10 – Charge-hand The two categories of employees in MDL DA Pattern are as follows:1) Operatives a. W1 – Skilled Gr. I b. W2 – Skilled Gr. II c. W3 – Highly Skilled d. W4 – Special Grade e. W5 – Mistry / Special Grade Engine Driver f. W6 – Charge-hand Gr. I g. W7 – Charge-hand Gr. II Hence, following promotion policy is followed in case of Operatives:1) In case of Unskilled Workers, there are no promotions. 2) In case of Semi-Skilled Workers, the promotion policy is as follows:a. After 4 years in Semi-Skilled Gr. I, the person is promoted to SemiSkilled Gr. II. b. After 5 years in Semi-Skilled Gr. II, the person is promoted to SemiSkilled Gr. III. 3) In case for getting promotion to Skilled Category, following policy is followed:a. Subject to a vacancy in Skilled Gr. I, Semi-Skilled Gr. III is promoted.

Page 100 of 114

b. After doing ITI and completing an apprenticeship in Mazagon Dock

Limited a person can be taken directly on Skilled Gr. I subject to successful completion of Trade test. c. If the management declares the vacancy for Skilled Gr. I, Semi-Skilled Gr. III has to appear for a technical test. 4) In case of Skilled Workers, the promotion policy is as follows:a. Skilled Gr. I to Skilled Gr. II – 4 Years of service. b. Skilled Gr. II to Highly Skilled – 10 Years of service.
5) In case of Getting promotion to Special Grade, following policy is followed:a. Highly Skilled to Special Grade – Ratio Based Promotions.

b. The formula for calculating ratio is as follows:Ratio (X) = Total Strength of Skilled Gr. I + Gr. II + Highly Skilled 8 or 6 Where, 8 or 6 means the total no. of Special Grades required in an occupation. c. Vacancy to be filled in Special Grade = X – Existing Strength of Special Grade 6) In case of Getting promotion to Mistry Grade, following policy is followed:a. Special Skilled to Mistry – Ratio Based Promotions. b. Ratio (X) = Total Strength upto Special Grade 15 Where, 15 means the total no. of Mistry required in an occupation. c. Vacancy to be filled in Mistry Grade = X – Existing Strength of Mistry 7) In case of Getting promotion to Charge-hand Grade, following policy is followed:a. Mistry to Charge-hand – Ratio Based Promotions.
b. Ratio (X) = Total no. of Skilled Gr. I – Total No. of Existing Mistry

45 Where, 45 means the total no. of Mistry required in an occupation. c. Vacancy to be filled in Charge-hand Grade = X – Existing Vacancy to be filled

Page 101 of 114

8) All the promotion are on the basis of Seniority-cum-Suitability based. The following policy is followed to determine the right senior person for promotion:a. Date of Joining in Skilled Grade 1. b. If the above is same then, Temporary Date of Joining in the MDL. c. If both the above is same then, Date of Birth. Notes:1) Increment and fixation in case of promotion is done in following manner:a. Current Basic Pay + Increment in existing Grade and fit in the Higher Grade. b. For e.g., suppose a person is in following pay scale of Semi-Skilled Gr. I:Rs. 2880-40-3040-45-3220-45-3400-50-3600 (16 Yrs) He has reached a Basic pay of Rs. 3440/- in the above category and has to be given promotion to next higher grade i.e. Semi-Skilled Gr. II for which pay scale is:Rs. 3210-45-3390-50-3590-60-3830-65-4090 (16 Yrs) Therefore, in case he gets promotion, he will be given one increment i.e. Rs. 3600/- and fitted in the next pay scale of equivalent or more amount. In this case, to Rs. 3830/-. Therefore, the new Basic Pay of the promoted employee will be Rs. 3830/- per month in Skilled Gr. II category. 2) Reservation System mentioned in the Government Rules (GR) is to be followed strictly in case of giving promotions. 3) The vacancy arising out due to retirement/dismissal/death/or any other reason in the reserved category is to be filled by selecting the candidate from the lower grade who is of the same reserved category.

Researcher has used personal interview technique and took face to face interview of D.G.M. (SB HR - Officers) to find out the Welfare Schemes & Benefits given by Mazagon Dock Limited to its Officer Level Employees. Following are the facts & findings during research:-

Medical Benefits
1) For Out-Patient treatment expenses, limit for officers is upto 1 months Basic

Pay + DA on yearly basis.

Page 102 of 114

2) For Hospitalization, unlimited expenses are allowed in all the 50 panel

hospitals for self and all the dependants.

Post-Retirement Benefits
Upto a sealing of Rs. 5,00,000/- after retirement is given to the retiring employee at the time of his/her retirement.

Provident Fund
12% of the Basic + DA and equivalent amount is contributed by the organization. 12% of the basic 8.33% Pension Fund 3.67% Provident Fund

1) Minimum 5 continuous years of service is to be completed by employee in the organization to avail this scheme.
2) Maximum sealing is Rs. 3,50,000/- for the officers (Under revision by

government to increase the sealing upto Rs. 10,00,000/-.

Company Quarters
1) Company quarters are provided to officers subject to availability. 2) Officers employed for providing emergency services are given preference. 3) Bachelor accommodation is provided for one year.

Interest Subsidy on Housing Loan
1) Mazagon dock Ltd. provides interest subsidy on the loan taken by the officers

from any financial institution. The subsidy provided is 3% p.a. on the interest given by the employee on Housing Loan taken. 2) Maximum allowed limit of loan on which interest subsidy is given is Rs. 5,00,000/-.

For Ladies Officers
1) Maternity leave of 3 months is given. Page 103 of 114

2) Separate enclosures like wash rooms, lockers etc. are provided.

Other Benefits
1) Leave travel allowance equivalent to Basic + D.A. is given every year for family vacations. This can be accumulated for 2 yrs. If not taken for 2 yrs., it lapses automatically. 2) Transport Allowance of Rs. 1250/- every month is added in the Salary. 3) Officer’s Mess is provided in which subsidized food of good quality is served. 4) Professional Development Allowance is given. 5) Sponsorship for P.G. Studies in Naval Architecture. 6) Incentives for acquiring higher studies. 7) Official Mobile & Landline to all officers.
8) Appreciation letter from Chairman & Managing Director (CMD) for good

work. 9) Cash rewards to motivate officers. 10) MDL’s Recreation Club for Officers:a. Voluntary membership b. Gymnasium c. Table Tennis & Carom

Annual Events & Picnics

e. New Year’s Party f. Occasion celebrations g. Library Facility h. Open Day (Family can come & see the company)

Promotion Policy
1) Promotion is given in July every year. 2) It is based on confidential report on appraisal of employee (3 yrs average) to CMD by immediate supervisor which has 65 marks. 50% is to be scored in the appraisal. 3) Atleast 3 years in a post has to be completed. 4) It is also subject to vacancy available in higher grade due to retirement/death/leaving of employee/creation of new post/increase in no. of posts. Page 104 of 114

Car Facilities
1) Car facility is given to GM & GGM level employees as well as to the Directors and CMD. 2) GMs & GGMs are given private cabs with drivers. 3) For Directors and CMD, company cars are given along with well dressed driver who is on the payroll of the company.

Recruitment & Selection
Chairman and Managing Director (CMD) has the authority to start the process of new recruitments for officers if vacancy arises in the organization. Following procedure is followed for the recruitment and selection of different grades of employees:1) Campus recruitment is done only for Naval Architects who are directly taken on Sr. Engineer Position.
2) Recruitment for Jr. Engineer is done on internal basis in which, employees

from Group C are promoted on the basis of their performance during entire service with the organization. It is done only if vacancy arises in Group B due to any circumstances. 3) Ex-Servicemen are given age relaxation as per Government Rules (GR). No reservation system is followed for recruitment of Ex-Servicemen.
4) Freshers are recruited in the organization as Probationary Officers and kept on

probation for one year before making them permanent on the basis on performance during the probation period. 5) Experienced people are recruited where vacancy arises due to any circumstances and the management thinks that it is suitable to recruit an experienced person on that particular position. Following is the detailed procedure for Selection on Officer Level vacancies:-

Page 105 of 114

Advertisement in Employment News/Company Website/Local News Papers/ Employment Exchanges/ Special Employment Exchanges Care for Reservation as per Central Govt. Rules is Applicable here

Written Test

Personal Interview

Selection on the Basis of Merit

Police Verification Report (PVR)

Medical Check-Up

Appointment Letter

Induction Program / Orientation Program

Following is the Basic Pay-Structure of Officers after implementing 6th Pay commission recommendations:POSITIONS PAY SCALE (IN Rs.) Page 106 of 114

GGM GM AGM DGM CM MANAGER AM DM Sr. ENGINEER Jr. ENGINEER Following other benefits are added in the Pay Scale:-

62,000 – 80,000 51,300 – 73,000 43,200 – 66,000 36,600 – 62,000 32,900 – 58,000 29,100 – 54,500 24,900 – 50,500 20,600 – 46,500 16,400 – 40,500 12,000 – 32,500

1) Dearness Allowance (DA) = 17% of Basic Pay (as per current rate) 2) House Rent Allowance (HRA) = 30% of Basic Pay 3) Additional Allowances = 20% on Basic Pay 4) Leave Travel Allowance (LTA) = 80% of Basic Pay (Every Year) 5) Medical Facility = Unlimited for Dependant and Self 6) OPD Medical Facility = Yearly One Basic Pay 7) Increment = 3% of Basic Pay on yearly basis 8) Pocket Money (Overtime) = Rs. 100/- for atleast 1 hr. compulsory working 9) For working on Saturday = Rs. 400/10) Leave Encashment = Yearly 30 Days and accumulation allowed upto 300 days on last salary drawn (Basic Pay + DA)

Retirement Benefits
1) Rs. 5,00,000/- is given from which 50% on the name of self and other 50% on the name of Wife. 2) Gratuity upto maximum limit of Rs. 3,50,000/- (Under revision by Govt. of India to increase the sealing upto Rs. 10,00,000/-). Calculation = (Last Drawn Basic + DA) x (15/26) x (No. of yrs. of service).

8.10 A case on Calculation of Compensation Permanent Disablement due to Accident during Work
Researcher while going through the Personnel Record file of an employee found this case and noted down the same to be presented in this project. This is the case of an employee, Mr. Ismail Abdul Rashid Sheikh whose designation is Shipwright Grade II.

Page 107 of 114

The case as mentioned in the Accident Report given by HOD is as follows:While leveling of wooden packing of wooden piece, the wooden piece fell down on the right foot and injured upper part of the right thumb. Injury was ascertained by the Standing Medical Board situated in the G.T. Hospital, Mumbai. After thorough examination by J.J. Hospital in Mumbai, percentage loss is determined to be 10% which the Standing Medical Board at G.T. Hospital, Mumbai approved. As per the provisions in Schedule IV (refer next page) of the Workmen’s Compensation Act 1923, the compensation is given by using following formula:Compensation = Amount equivalent to 60% of Permanent the monthly wages (Rs. 4000/-) X Schedule IV of the Act Rs. 2400/= Rs. 33,391.20/Hence, the compensation of Rs. 33,391/- was given to Mr. Ismail Abdul Rashid Sheikh after declaration by the Chief Medical Officer of the company to be fit to work on immediate joining of the duty. During the period of absenteeism due to injury while working, full wages was given to the employee. 139.13 X Disablement 10% Relevant Factor given in Percentage of


Completed years of age on the last birthday of the workman immediately preceding the date on which the compensation fell due 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

Factors 228.54 227.49 226.38 225.22 224.00 222.71 221.37 219.95 218.47 216.91 215.28 213.57 211.79 209.92 207.98 205.95 203.85 201.66 199.40 197.06 194.64 192.14 189.56 186.90 184.17 181.37 178.49 175.54 172.22 169.44 166.29 163.07 159.80 156.47 Page 109 of 114

50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 or more

153.09 149.67 146.20 142.68 139.13 135.56 131.95 128.33 124.70 121.05 117.41 113.77 110.14 106.52 102.93 99.37

Page 110 of 114


BIBLIOGRAPHY Books: 1. Taxmann’s Labour Laws, Edition 2009. 2. Introduction to Human Resource Management, ICFAI Press, Edition 2004

Memorandum of Settlement between Trade Unions and Management of Mazagon dock Ltd., Edition October 20, 2005


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1. 2. 3.

www.google.co.in www.wikipedia.com (The free encyclopedia) http://mazagondock.gov.in/


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