A field work report on

The Functioning of personnel/HR Department of

Mahindra and Mahindra, pune

Submitted by
Tanvi Gatecha
Roll no.05

Under The Guidance of

Prof.Karuna Jadav

Towards the fulfillment of the

Masters Degree In Personnel Management
Submitted to
Savitri phule University of Pune
2014-2015
Through
Neville Wadia Institute of Management Studies and
Research,Pune
1

Acknowledgement
This project is an outstanding project to convey my gratefulness to those
many people whose timely help & guidance went a long way in finishing
this project work from commencement to achievement.
I would like to express my sincere thanks to Mr RK Giri for giving me
an opportunity to explore the practical knowledge in the Society.
The project would have not been completed without the able guidance
and support of Prof. Karuna Jadhav.
I am very glad to work with the Organization as a trainee. I am
grateful to society for helping me to put
the information and an invaluable experience.
Working on a project has proved to be an enlightening experience for
me.
Thank You Very Much

Tanvi Gatecha

5 thfloor,Gigaspace,
Viman nagar,pune-411014
Tel:020-24356382,24356265

Certification
This is to certify that Tanvi Gatecha of Neville Wadia institute of
management studies and reserch,pune has completed the field work on
functioning of personnel and Hr department of mahindra and
mahindra.

Nilesh Ahire
Sr.Human resource executive

Declaration
I declare that all the records and facts are recorded on the basis of
actual day to day life of housing society guards from different societies.
The piece of work is submitted to the Neville Wadia Institute Of
Management Studies And Research , Pune is for the fulfillment for the
Degree of Master In Personnel Management.

Tanvi Gatecha

Content
Introduction of company

Company profile

11

Human resource management

19

Administrative functions

34

Industrial relation

51

Welfare

55

Conclusion

58

Annexure

60

Introduction of company

INTRODUCTION
Mahindra and an independent India began their rise together. In 1945,
two enterprising brothers named J.C. Mahindra and K.C. Mahindra joined
forces with Ghulam Mohammed and started Mahindra & Mohammed as a
steel company in Mumbai. Two years later, India won its independence,
Ghulam Mohammed left the company to become Pakistans first finance
minister, and the Mahindra brothers ignited the company's enduring growth
with their decision to manufacture Willys jeeps in Mumbai. The companys
new name? Mahindra & Mahindra, of course.
Mahindra Vehicle Manufacturers Ltd. was set up in 2007 to push our
technology to the edge. We designed and built a greenfield facility at
Chakan, near Pune, Maharashtra, to integrate the best in technology,
environmental

sustainability,

social

responsibility,

and

operational

excellence. Spread across 700 acres and planted with approximately 10,000
trees, Chakan offers a flexible and eco-friendly manufacturing layout for
multiple Multi-Purpose Vehicles (MPVs), sport utility vehicles (SUVs),
and commercial vehicles that allows us to respond rapidly to changing
customer needs.
With a current capacity of 3.2 million vehicles per year and a future-ready
expandable module setup, we have the flexibility to constantly innovate and
adapt to changes in market demand or customer requirements. We currently
manufacture Mahindra & Mahindras entire medium and heavy commercial
vehicle range from the 0.75 ton Maxximo to the 49 ton Mahindra Navistar
truck. The new Global SUV and Pik-Up range will also be manufactured
here.

Our staff of 4000 approx. is highly trained in the fields of mechanical,

electronic, civil and electric engineering as well as paint technology. We
partner with two regional tribal Industrial Training Institutes (ITIs) to
facilitate a match between educational quality and content and industry
demands. Our partnership has resulted in periodic faculty training sessions,
a restructuring of the curriculum, and the recruitment of 250 students to an
apprenticeship training scheme. We also maintain our own residential
training centre which provides a month-long training to the selected trainees
before they initiate work at the shop floor.
We use solar energy and waste heat from the oven exhaust to power
activities in the paint shop, reducing our consumption of gas and electricity
for an overall reduction of 3,500 tons of CO2 per year. A cluster of 70 solar
dishes provides the energy for cooling the paint used for the vehicle bodies.
And by recycling waste water through reverse osmosis and multiple effect
evaporation, we achieve zero water discharge across the entire plant.

10

Company profile

11

COMPANY PROFILE
Head Office

Mahindra & Mahindra Limited

Established

1945

Turn over

US $ 12.5 billion

Number of Employees: Over 1, 37,000(Over 100 Countries)

Company History
Jagdish Chandra Mahindra was born circa 1892 in Ludhiana, Punjab.
The eldest of nine children, the loss of his father at an early age placed the
responsibility for the family on his shoulders. He believed strongly in the
power of education and ensured that all his brothers and sisters studied hard.
J.C.

received

his

degree

from Veermata

Jijabai

Technological

Institute (VJTI) Mumbai, one of India's premier engineering and technical

institutes. He sent his brother K.C. to Cambridge. The brothers were very
close and the love and trust between them was extraordinary.
J.C. started out his career with Tata Steel, serving as the senior Sales
Manager from 1929 to 1940. When the steel industry became critical during
World War II, the Government of India appointed him as the first Steel
Controller of India.
As Independence approached, J.C. was prescient about the opportunities that
Indian entrepreneurs would have to contribute to the growth of the newborn
nation. His vision and ambition led him to start Mahindra & Mohammad in
partnership with K.C. and Ghulam Mohammed.
12

His vision and insight into Indias post-independence economic development

enabled Mahindra & Mahindra to grow to the size, scope, and impact it has
reached today.
J.C. died tragically of a heart attack in 1951.

Kailash Chandra Mahindra was born in 1894 in Ludhiana, Punjab, the

second of nine children. When their father died at an early age, his older
brother J.C. stepped into the role of head of the family. K.C.s deep lifelong
friendship with J.C. was remarkable.
K.C. studied at Government College, Lahore where he showed early promise
of a brilliant scholastic career. Continuing his studies at Cambridge, UK, he
earned Honors, played hockey, and took a keen interest in rowing.
When K.C. graduated from Cambridge, Mr. Sachinanda Sinha, Vice
Chancellor of Patna University, introduced him to Mr. R.N. Mukherjee,
Senior Partner of Messrs. Martin & Company. He quickly rose through the
company, editing the monthly magazine INDIA and, briefly, the Hindustan
Review.
In 1942, K.C. was appointed Head of the Indian Purchasing Mission in the
United States. Returning to India in 1945, he was appointed the Chairman of
the Indian Coal Fields Committee of the Government of India and also of the
Automobile and Tractor panel. His contribution to developing strategic coal
policies and applying the latest methods of coal mining in India helped shape
the industry, and his Coal Commission Report became a seminal document
13

in the industry. During these years, he also wrote a biography called Sir
Rajendranath Mookerjee: A Personal Study.
In 1946, K.C. moved to Bombay with his brother J.C. to found Mahindra &
Mohammed. Under his 13-year leadership as Chairman, Mahindra &
Mahindra established itself as a major Indian industrial house in several
sectors.

He

also

served

as

Director

of

RBI,

Air

India,

and

Hindustan Steel and Chairman of Indian Aluminium Company.

K.C. died in 1963.
Mahindra and an independent India began their rise together. In 1945,
two enterprising brothers named J.C. Mahindra and K.C. Mahindra joined
forces with Ghulam Mohammed and started Mahindra & Mohammed as a
steel company in Mumbai. Two years later, India won its independence,
Ghulam Mohammed left the company to become Pakistans first finance
minister, and the Mahindra brothers ignited the company's enduring growth
with their decision to manufacture Willys jeeps in Mumbai. The companys
new name? Mahindra & Mahindra, of course.
The Mahindra brothers believed that new modes of transportation could be a
key to Indias prosperity, so one of their first goals was to build rugged,
simple vehicles capable of tackling the Indian terrain. Early pioneers of
globalization, the brothers collaborated with a wide range of international
companies and before long, Mahindras reach extended to steel, tractors,
telecom, and more.
Now, after 65 years, Mahindra has grown from a humble local outfit to a US
$12.5 billion corporation employing more than 119,900 people around the
14

world. Its been quite an adventure so far, and were proud of our global
leadership in utility vehicles, tractors, and information technology, as well as
our significant presence in financial services, leisure and hospitality,
engineering, trade, and logistics. As we accelerate into the 21st century,
well continue to pursue innovative ideas that enable people to rise. Weve
come a long way, but the journey has just begun.
Today, our operations span 18 key industries that form the foundation of
every modern economy: aerospace, aftermarket, agribusiness, automotive,
components, construction equipment, consulting services, defense, energy,
farm equipment, finance and insurance, industrial equipment, information
technology, leisure and hospitality, logistics, real estate, retail, and two
wheelers.
Our federated structure enables each business to chart its own future and
simultaneously leverage synergies across the entire Groups competencies.
In this way, the diversity of our expertise allows us to bring our customers
the best in many fields.
The Mahindra Group comprises ten business sectors Aftermarket,
Automotive & Farm Equipment, Defense Systems, Financial Services,
Hospitality, Information Technology, Real Estate & Infrastructure, Systech,
Two Wheelers and Mahindra Partnerswith a presence in 18 industries.

15

PRODUCT PROFILE
Business Sectors
Aerospace

Company Name
Mahindra

Aerospace

Aerostaff

Australia

Gipps Aero
Aftermarket

Mahindra

First

Choice

Services

Mahindra First Choice Wheels

Agribusiness

Mahindra ShubhLabh Services

Automotive

Mahindra & Mahindra-Automotive

Mahindra

Graphic

Mahindra

Navistar

Mahindra
Reva

Mahindra

Vehicles
Manufacturers

Ssangyong Motor Company

Mahindra
&
Mahindra-Systech

Division

Mahindra

Castings

Mahindra

Composites

Mahindra

Engineering

Mahindra

Services
Forgings

Mahindra
Mahindra

Forgings

Europe

and

Transmissions

Gears

Mahindra

Intertrade

Mahindra Ugine Steel Co

Construction

Engines

Electric

Vehicle

Design
Automotive

Navistar

Mahindra

Components

Research

Division

Mahindra Construction Equipment

16

Equipment
Consulting Services

Mahindra

Consulting

Mahindra

Special

Engineers

Services

Group

Mahindra-Defense

Division

Mahindra Water Utilities

Defense

Mahindra

&

Defence Land Systems

Energy

Mahindra

&

Mahindra-Energy

Division

Mahindra Solar One

Farm Equipment

Mahindra & Mahindra-Farm Equipment Division

Mahindra

(China)

Mahindra

Tractor
USA

Co
Inc

Mahindra Yueda (Yancheng) Tractor Co

Business Sectors
Finance & Insurance

Company Name
Mahindra & Mahindra
Mahindra

Financial

Insurance

Services
Brokers

Mahindra Rural Housing Finance

Industrial Equipment

Mahindra Conveyor Systems

Information

Bristlecone

Technology

CanvasM
Mahindra

Satyam

Tech Mahindra
Leisure & Hospitality Mahindra

Holidays

&

Mahindra Ocean Blue Marine

17

Resorts

India

Logistics

Mahindra Logistics

Real Estate

Mahindra

Lifespace

Mahindra World City Developers

Retail

Mahindra Retail

Two Wheelers

Mahindra Two Wheelers

18

Developers

Human resource management

19

ORGANIZATION CHART
Chief Operating Manager

Head
Products
and
Engineer
Service

Head
Technical

Head
Accountant

Head
Materials

Manager
Technical

Manager
Accountant

Asst.Mgr.Ma
terials

Assistant
Manager
Technical

Senior
Accounts
Officer

Senior
Welfare
Officer

Manager
Engineer
Service

Manager
Production
Service

Assistant
Manager
Engineer
Service

Assistant
Manager
Production
Service

Head
Personnel
&
Admin

Senior
Officer
Personnel

20

Asso.Mgr.
Safety and
security

human resource structure

Head Personnel

Senior
Welfare
Officer

Senior
Officer
Personnel

Jr. Officer
Personnel

21

Asso.Mgr.
Safety and
security

Management
Trainee

.MANPOWER PLANNING
Manpower Planning which is also called as Human Resource Planning
consists of putting right number of people, right kind of people at the right
place, right time, doing the right things for which they are suited for the
achievement of goals of the organization. Human Resource Planning has got
an important place in the arena of industrialization. Human Resource
Planning has to be a systems approach and is carried out in a set procedure,
steps are as follows:
1.
2.
3.
4.
5.

Analyzing the current manpower inventory

Making future manpower forecasts
Developing employment programs
Design training programs
MANPOWER : DEPARTMENT WISE STRENGTH IN
MVML

Sr. Department

Permanent Probation Temporary Trainees

22

Apprentice Total

1.

Production

384

2.

Planning

3.

Engineering

40

4.

Technical

35

5.

Personnel

35

42

6.

Accounts

70

74

7.

Purchase

15

16

8.

Store

150

152

9.

Dispatch

15

17

11

2294

203

3447

10. Project
Total

749

200

2284

185

3053
2

3
1

201

37

JOB ANALYSIS AND JOB DESIGN

A key element in human resource management program is job analysis. Once
an effective job analysis program is established and maintained, many
troublesome personnel problems either become much less difficult to resolve
or disappear entirely. Job analysis is the basis of the other personnel
functions. It results in two essential documents: the job descriptions and the
job specifications. They will be used in the other functions, such as
personnel planning, recruitment, employee selection, performance appraisal,
training, compensation, discipline, health and safety programs, and labormanagement relations.
In MVML, the job analysis process is followed as mentioned below:

23

43

Selection of jobs for

analysis
Data collection

Job description
Job duties/ tasks
Responsibility: Money, man,
material
Work environment
Hazards
Vertical and horizontal
relationships to other jobs
Job specification
Physical characteristics
Education
Skills
Psychological attributes such
24
as knowledge, attitude, aptitude

Use of job description and job

specification:
Personnel planning
Recruitment& selection
Training & development
PMS
Compensation & job
evaluation
Health and safety program
Work scheduling
Employee discipline
IR
Career management

C.RECRUITMENT PROCEDURE
An organization is made up of people and its the people of the organization
who not only ensure sit survival but also forms the basis of their
identification and competence.
Recruiting the right person for the right post and job requirement is thus one
of the most critical functions of the personnel department.
Its the policy of the company to recruit apprentice candidate matching the
required specifications that will facilitate fulfilling the jobs and
responsibilities of various notes and functions.
The company informs the Employment Exchange (EE) about their
requirements of the trainees. For the compulsory notification the company
submits a Quarterly report to the Employment Exchange about the
percentage change in the total strength of employees.
Prior to any recruitment in the company (temporary or permanent ,
replacement or additional) and whether it falls into any category of workers,
supervisors, trainees, officers and higher managerial levels a formal sanction
of the concerned Divisional Head, Divisional Head Personnel and

25

Administration, Chairman and Managing Director must be obtained in the

Personnel Requisition Form.
The candidates must be identified through any of the following
resources
News paper advertisements
Forced Applications
Campus recruitment in case of Management Trainees and Graduate
Engineer Trainees.

D.SELECTION
Filling up of Candidate Information system:
As the name suggest candidate have fill up one form which includes the
personal information. This form includes candidates carrer goals, past
experience, professional achievements, educational profile, extra curricular
activities, break up of salary, personal information such as address, contact
infornmation, e-mail, etc, and references if any.
(i) Priliminary or Personnel Interview :
The preliminary interview is intended to screen the candidates further .It is
generally of short duration. The interviewer has to decide whether the
applicant is fit for job or not.
(ii) Administering Test :Different types of test undertaken by Personnel Department. These tests are
conducted for the knowledge of

personal behaviour, efficiency of

work.Generally follwing test are conducted,

26

1. Achievement test 2.Trade test

3. Interest test4.Intelligence test.

(iii) Shortlisting Candidates for Final Interview:

At this stage the candidates who are preffered by the technical team they are
send for the Final interview with the higher managemnt.
(iv) Final Interview:
Final interview is conducted by the higher managment. In this interview
generally issues like salary neotiations are cleared. If the candidates
expectstions of salary are within the company norms and regulations then
such candidate is selected.
For all appointments in the level of supervisor and below, the factory has the
authority to appoint them once the requisition gets sanctioned. There are
grades ranges from L10 Operational to L1 strategic managerial
`For all appointments in grade L7M and above, the candidates have to be
interviewed by EXCOM members.
Corporate personnel department remains responsible for identification,
selection and recruitment of all candidates in L7Mgrade and above.
Another way of filling a requirement depending on the nature and sensitivity
of the job is promotion of person from within a company based on his
performance, capacity to perform and other meritorious criteria.
All employees must undergo through INDUCTION process to get
familiarized with all the activities and functions of the company.

27

All appointees against permanent vacancies shall be on probation. The

period of probation for bargainable staff is for a period of three months for
supervisors and managerial posts is for a period of six months.

E.ORIENTATION AND PLACEMENT

Once the candidates are selected for the required job in MVML, they have to
be fitted as per the qualifications. Placement is said to be the process of
fitting the selected person at the right job or place, i.e. fitting square pegs in
square holes and round pegs in round holes.
Transfers, promotions, demotions are based on the organizational goals,
employees potential, performance and experience etc
Once he is fitted into the job, he is given the activities he has to perform and
also told about his duties. The freshly appointed candidates are then given
orientation in order to familiarize and introduce the company to him.
Generally the information given during the orientation programme includes

Employees layout
Type of organizational structure
Departmental goals
Organizational layout
General Policies and rules, regulations
Grievance system or procedure

28

In short, during Orientation employees are made aware about the mission
and vision of the organization, the nature of operation of the organization,
policies and programmes of the organization.
The main aim of conducting Orientation is to build up confidence, morale
and trust of the employee in the new organization, so that he becomes a
productive and an efficient employee of the organization and contributes to
the organizational success.

F.TRAINING AND DEVELOPMENT

Personnel department takes special interest in training and development to
churnout professionals who can fit into the new times of demand. All
employees up to supervisory level are covered for such training.
Its the responsibility of the personnel head who is assisted by the section
head. Personnel department looks after training in organization and
maintenance of records of training procedures.
The training is structured to meet the companys existing needs and future
requirements.
The training procedures for new entrants are as followsManagement level
All new entrants undergo an orientation programme, organized by
personnel department and where applicable, thereafter, functional
training by the concerned Department Head.
Staff / Supervisory Level

29

All freshly recruited personnel at the staff and supervisory levels

undergo on the job and specific skills training as determined by the
Department Head before being assigned independent responsibility.
On satisfactorily completion of training by the candidate, he is taken
on probation. After this concerned Department Head fills a
performance report which appraises the candidates on the basis of
criteria like job knowledge, quality and finishing, attendance,
punctuality, behavior, attitude etc. this form their basis of appraisal.

Workmen level
Person recruited at the workforce level are inducted as job trainee
and trained as deemed necessary by the concerned supervisor /
Section head / department head. If found suitable after their training
period they are taken on probation. On completion of probation,
performance report are filled and forwarded to personnel department
by head of the department. This serves as the basis for confirmation
of the candidate.

In house training programme

Unit personnel department head arranges this were similar training is
imparted to a group, in such cases unit personnel department head
obtains appropriate authorization from the unit head.

Training records

30

Reports on training programme organized vis a vis needs identified

are prepared yearly by unit personnel department / human resource
department.
Appropriate records of training imparted to management personnel
are maintained by unit head / corporate human resource department
through report submitted by personnel receiving the training. Unit
personnel department maintains records of raining imparted to
workers and supervisors.

Training effectiveness
Training evaluation, delayed feedback forms will be obtained from
training programmes critical to quality of the product from
concerned department head after a period of three months which
may be extended to a period of six months and unit personnel
department.
Employees training days will be computed for each year on the basis
of training imparted. Training list of employees is prepared for the
respective training and the list is put on the notice board and copy is
sent to respective department head.
As a policy matter some training is organized besides the regular
training needs by management which are imparted to individuals or
to group or to concerned employees as needed and accordingly
training calendar is modified.
However it is to be noted that as a decision all external training
program for officer and above had been shelved off.

31

PERFORMANCE APPRAISAL
At Chakan factory there is no system of conducting performance appraisal
for workmen. Performance appraisal is carried out once in every year for the
category of supervisors and above. Duly filled appraisal forms of offices and
above are sent to the head office for evaluation and decisive action. For
supervisors only their appraisal ratings are sent to the head office.
Performance appraisal is concerned to be one of the most effective ways to
provide an opportunity for systematic review of the employed performance
for their planned development. It also gives feed back to the officers on their
performance and helps them to improve skills and performance in future.The
appraise fills the self appraisal form outlining his / her significant
achievement contributing environmental factor (favorable, unfavorable) ,
effecting their performance during the year under review and any other
information he / she feels that appraisal should know.Together with appraise,
appraiser sets targets for next appraisal year in key performance indication.
Appraise and appraiser discusses, identifies and records the training needs of
32

appraise along with the supporting comments of the appraiser. The

performance appraisal report then is forwarded to the unit / regional /
divisional head, who in turn will pt up individual appraisal reports to various
moderation committees consisting of EXCOM members for their comments
and decisions.From last two years a system of mid-term appraisal had also
been initiated so as to better identify, development, performance and needs
of the employees and thus make them more equipped and aware to face the
future.

Administrative functions
33

PAYROLL&LEAVE MANAGEMENT SYSTEM

The Time Office & Account section is held responsible for handling the
payroll of all the workers and thereby bringing out the pay slips for all the
workers after making all the calculations so as to arrive at the net pay to be
given to each of the employees.
The two most important components of the pay slip are as follows
1.

Earnings

This consists of the total earnings of an employee that can be categorized

under the following heads.
34

 Basic wage
Dearness allowance
Overtime earnings
Leave encashment
B/F in case of any balance brought forward from last year.
2.

Deductions

There are lots of deduction that takes place from he actual pay of the workers
Provident fund deduction
Extra provident fund
Professional tax
Income tax
Labor welfare fund
Canteen expenses

LEAVE MANAGEMENT SYSTEM

Time office is dealing with giving correct and timely calculations of
attendance data and submitting the same to the accounts department for final
pay roll processing
Time office at Chakan factory is fully computerized. It had two punching
machines for the unionized employees and one for the officers. Time office
maintains a master data of about 3447 employees that comprises of
employees from workers to supervisor level. It operates data of (as on 31 st
July 2014)
Permanent : 749 Nos.
35

Prob.

: 201 Nos.

Trainees

: 2294 Nos.

App.

: 203 Nos.

The master data contains all the personal information of employees about
their family and education, their addresses, their designation, blood group,
shift, date of birth, date of joining etc.
The software package stores and processes data under the following heads:
1. The master data
Category
Company
Departments
Designations
Leave type
Shift timings
Holiday
2. Entries
Leaves
Sunday working
Time adjustment
Supervisor Sunday working
3. Processing
Code conversion
Daily updating
Leave carry forwarding
View data
36

 AB-WO-AB
4. Reports
Immediate reports
Error reports
Daily reports
MIS reports
Monthly reports
Yearly reports
LEAVE POLICY
PURPOSE OF LEAVE:
Leave is granted to employees with the good intention of providing rest,
recuperation of health and for fulfilling social obligations. This provides for
a healthy and efficient staff for the company.

LEAVE YEAR AND APPLICABILITY:

Leave is not a matter of right.
Sanctioning of leave is at Management discretion based on exigencies
of business or seriousness of the case.
Leave year is from 1st January to 31st December.
Eligible leave is credited to the employees on the 1 st of January every
year.
The different types of leaves given under the policy are:
Privilege Leave (PL)
Earned Leave (EL)
Maternity Leave (ML)
37

 Loss Of Pay

(LOP)

The Leave policy is applicable for all permanent staff of the company.
Employees who are appointed during the course of the year shall be
entitled to the above leaves on pro-rate basis.
Employees whose date of joining service falls between 1 st to the 15th
of a month are entitled to get the leave credit for that month.
Employees whose date of joining service falls between 16 th to the end
of the month are not entitled for the leave credit for that month.
If an employee is relieved on any day between 1 st to 15th of a month,
then he / she is not entitled for leaves due for that month.
If an employee happens to leave on any day between 16 th to the end of
the month then he / she is entitled for leaves due for that month.

PRIVILEGE LEAVE
ELIGIBILITY:
All permanent staff : Privilege leave is calculated for a period of one year
(January to December)
ENTITLEMENT:
1. 30 days of Privilege Leave in a calendar year.
2. 20 days are Mandatory PL out of 30 days if not utilized in the calendar
year, will get lapsed.
3. PL can be availed maximum to 4 occasions in calendar year.

38

4. The days served under probation will be taken into account for PL
eligibility.
5. National / Festival / Declared / weekly off days can be prefixed or
suffixed to PL.
6. Intervening National / Festival / Declared holidays will be counted as
part of the leave.
7. Balanced PL other than mandatory remaining unutilized as on 31 st
December will be carried forward to the next year.
8. When leave is taken without prior sanction (under certain unavoidable
circumstances), the absence should be notified to the respective HODs
on the same day through phone.
9. At the time of resignation / retirement / termination the balance PL
will be encashed at the basic pay rate as on the day of resignation /
retirement.
10.Any absence of more than the number of PL sanctioned will be treated
as leave without pay, unless given valid reasons to the management.
11.Approved leave application should reach the HR department within 3
working days of rejoining.

.EARNED LEAVE (EL)

ELIGIBILITY
All Trainee & Permanent staff
ENTITLEMENT:
1.

9 days of Earned Leave (EL) in a calendar year.

2.

A minimum of half EL can be availed & a maximum of whatever is

required or whatever is available, whichever is lesser

39

3.

If EL extends beyond 3 days, it has to be accompanied with a

Doctors certificate

4.

In case adequate numbers of EL are not available with an

employee, he can club PL with it. If PL is also not available, then it
will be treated as LOP.

5.

Intervening National / Festival / Declared holidays will be counted

as part of the leave.

6.

Balanced EL remaining unutilized as on 31st December will be

carried forward to the next year

7.

Inability to attend office because of any sickness should be notified

to the respective HODs on the same day through phone.

8.

Approved leave application should reach the HR department within

3 working days of rejoining.

.MATERNITY LEAVE (ML)

ELIGIBILITY:
All married female staff
ENTITLEMENT:
1. 84 days of paid Maternity Leave is allowed to females who
have to deliver a child
40

2. A female employee can adjust this leave before and after the
delivery of child totaling it to 84 days
3. Before availing this leave, a certificate from the gynaecologist
has to be submitted mentioning the expected date of delivery
4. Intervening National / declared / festival / weekly off days will
be counted as part of leave
5. If, because of any complication, leave has to be extended, it can
be done but will fall under LOP
LOSS OF PAY (LOP)
1. LOP can be applied by an employee when no other leave is
available.
2. During the period of LOP, the employee is not entitled for any
pay or allowance.
3. A maximum of 3 months of LOP can be availed on the approval
of the management.
4. If the employee fails to report to duty on the specified date after
the sanctioned LOP, it is deemed that the employee has
abandoned his service with the company on his own accord.
5. LOP can be implicated on disciplinary grounds with regard to
attendance by the management regardless to the availability of
the other types of leave.
6. LOP days will not be taken for EL eligibility.
COMPENSATORY OFF
1. If an employee is required to work on any important assignment
on a National / Festival / Declared / weekly off day, he is
eligible for Compensatory off on any other working day.

41

2. Official approval is required from the department head /

management to work on such National / Festival / Declared /
weekly off days. No compensatory offs will be entertained
when worked on these days without proper approval.
3. The compensatory off has to be availed within a period of One
months from the date worked.
4. Compensatory off when not availed within the stipulated time
period will lapse.
5. Only two days of compensatory offs can be combined and
availed at a stretch.

PROCEDURE FOR APPLYING LEAVE

The available leave balance is to be checked by the employee with the HR

department and the leave to be applied by duly filling up the leave
application form or through SecureNet. The application has to be forwarded
by the employee to their department head for approval. The department head
is authorized to either grant or disapprove the leave on valid grounds. The
approved leave application has to be submitted to the HR department for
recordings and subsequent processing.
CANCELLATION OF LEAVE

1. The department head can also cancel the once sanctioned leave
on situational / need basis. If an employee proceeds to avail the
cancelled leave then those days will be treated as absence from

42

duty and the rules pertaining to absence from duty will be

applied.

EXTENSION OF LEAVE

1. As it is necessary to get prior approval for leave so it is also for

extension of leave. The employee has to apply to his/her
department head for extension of leave well in advance and get
it sanctioned to avail them. In case an employee overstays, the
unsanctioned leave availed will be treated as absence from duty.
ABSENCE FROM DUTY

1.

When an employee takes off from duty without prior leave approval or

proper intimation under certain unavoidable circumstances, then those

day/days will be treated as absence from duty.
2. The days of absence will be treated under Loss of Pay.
3. The employee has to report to his / her department head on
rejoining duty from absence and provide valid reasons for
absence in writing before taking up work again.
4. If an employee is absent from duty continuously for more than 7
days (including any National / Festival / Declared / weekly off
days which may fall in-between), an official correspondence
from the HR department will be sent to him asking to report to
duty and to provide explanation for his absence.
5. Based on the enquiry any action deemed fit would be taken by
the management.
43

6. If there is no response from the employee within the stipulated

time mentioned in official correspondence, it would be assumed
that the employee has withdrawn his service from the company
on his own accord and recorded accordingly.

EMPLOYEE BENEFITS & SERVICES

At Chakan factory officer Personnel is responsible for performing all the
duties related to general administration, of the company.
The administrative officer role generally resolves around to major categories.
1. Management of the guest house

Renovation and upkeep of the guest house.

44

Managing the care takers of the guest house.

Making provision for food, telephones, transport etc.

Organizing parties and send off for guests as and when

required.

Paying property taxes.

Attending society meetings.

Receiving and leavings guests from and to the station / airport

respectively.
2.

Transport

The company maintains a fleet of its own as well as transport on contract

basis. The administrative officer is responsible for
Maintaining liaisons with the contractors.
Servicing, repair and maintenance of vehicle.
Payment of taxes.
Insurance payment.
Managing drivers for vehicles.
Selling and buying of vehicles.
3.

Welfare activities

Welfare activities at Chakan factory, strictly abides by all the statutory

requirement of the factories act, 1948 that in chapter 5, clearly lays down all
the provisions to be made by the company that is related to the welfare and
well being of the workers.

45

Chakan factory not only fulfills the statutory obligations and requirements of
the act, to bring about the welfare of the workers but also provides welfare
facilities, which are over and above the statutory requirement.
House keeping
The welfare officer is responsible for the entire house keeping activities, like
taking care of the cleanliness, sanitation, and hygiene of the factory premises
through regular and daily cleaning of roads, shop floorings, toilets, upkeep of
the gardens, canteen etc.
First Aid
Appliances and occupational health center with a qualified doctor and a
compounder is maintained within the factory premises to take care of any
accidents or injuries. A company ambulance is also maintained within the
premises of the company for its 24 hours accessibility in case of any
emergencies.
Facilities for Sitting
Facilities for sitting are provided for workers to sit and relax during their tea
time and recesses.
Washing facilities
Washing facilities are provided for the use of workers as out industry comes
under the category of being a hazardous industry.
Facilities for storing and drying of wet clothing
Facilities for storing and drying of wet clothes are provided for the use of
workers.
Shelters, Rest rooms and Lunch Rooms
Shelters, Rest rooms and Lunch Rooms are provided so as to ensure that the
workers have their lunch in a hygienic environment and be comfortable in
the organization.
Canteen
46

Canteen is run in the factory through a contractor and regularly supervised

by the welfare officer. It is a well furnished and hygienically maintained
place that provides nutritious food and refreshments to the workers including
fruits, milk, curd, etc. The canteen operates on a coupon system whose rate
has been subsidized by the company.
The factory also has a canteen management committee for timely
consultations which consists of both management representatives and union
representatives. This committee has its meeting on a regular and periodic
basis.
Uniforms
The company through welfare department provides uniforms for all the
employees and employers.
Recreation & Festival celebration
Celebrations of various festivals like Ganesh Festival, Dusshehra Puja,
Diwali Puja are all organized and managed by the welfare section.
Arranging foe the distribution of sweets during Dusshera to all the
employees and also organizing other small functions like farewell parties and
all.
Welfare officer
As per the factories act, Mahindra Vehicle Manufacturers Limited, Chakan
has a well qualified and experienced welfare officer whose duty, jobs and
responsibilities have been prescribed by the company.
Welfare fund
As per the agreement, the management has agreed to set up a welfare fund,
for which the management will give Rs. 5,00,000/- as initial and one time
amount as a seed capital.
4.

Safety
47

Mahindra Vehicle Manufacturers Limited is a Lead Acid based battery

manufacturing industry that is considered to be a very hazardous industry.
Lead is used on a mass scale, thus making all the workers operating on
various processes extremely susceptible to lead poisoning and other fatal
diseases that result out of exposure to lead and its compounds.Thus taking
care of the safety and health of the workers is considered to be a major moral
and statutory obligation of the company. The safety officer thus is held
responsible for
Conducting regular inspection of all the machines and engineering
it axes to ensure its safe operation so as to minimize accidents.
Periodic checkup of percentage concentration of lead in the
workplace.
Purchase of personal protective equipment and issuing them to
workers
Imparting training in fire fighting.
Conducting mock drills of fighting fire, leakage of LPG etc.
Sanctioning premises for engaging in operations taking place at
heights.
Making provisions of PPE to contract workers.
Complying and co-operating with factory inspectors.
Evaluation of inspectors remarks and taking corrective actions in
case of any deviations.
Periodic medical examination of both permanent and contract
workers to check their blood lead level, through testing their blood,
urine and hemoglobin
Reporting and investigation of some major accidents and
dangerous occurrences.

48

 Celebration of safety week (From 4th to 11th March) and the world
environment day on 5th June.
Ensuring quarterly meeting of safety committee.
Organizing

safety

exhibitions

and

participating

in

safety

competitions organized internally at state and national level.

Conducting of regular health education programmers for workers.
5.

Security

Chakan factory takes all the necessary measures to ensure law and order
inside the company so as to provide safety and security of all the employees
and thereby facilitate smooth and productive flow of work.
Chakan factory has 25 supervisors and 350 guards to ensure safety and well
being of the entire factory as well as all the people manning it.
The security people has the following responsibilities
Posting of guards according to their education, capability, experience
and availability.
Conducting surprise checking of the guards, so as to ensure that they
function diligently and responsibly.
Verification of incoming and outgoing materials, in terms of quality,
weight as specified on the challan.
Maintaining and fostering discipline and decorum in the company.
Safeguarding the company people and its machines and other assets
against any kind of anti-social activities.
Fire fighting in case of emergencies.
Maintaining records of the vehicles and visitors entering the premises
and issuing them gate pass.
Controlling of M.I.D.C. waters.
49

 Safeguarding all the strategic and critical points like lead yard, ETP,
scrap yard etc.
Safeguarding and protecting the factory on holidays.
Informing and investigating any kind of theft etc.

50

INDUSTRIAL RELATIONS

Industrial relation refers to relations between employers and employees or

between employers and employers or between employees and employees,
which is connected with the conditions of labor, or any person (as per the
definition in Industrial Disputes Act.)
In general Industrial Relation scene at Chakan factory is pretty peaceful,
constructive and healthy, thereby playing a major role in contributing
towards its performance and productivity. It is the credit of this department,
which never allows any slips in this regard.
Industrial Relation gets disrupted mainly due to differences and mistrust
between management and union / workmen, but its the management, which
ensures that such things dont ever occur.
51

There are a number of functioning committees at Chakan factory like

canteen committee, safety committee and production committee etc. to take
the care if any kind of differences, misunderstanding and disputes
arise.Workers participation is considered to be very important at Chakan
factory and a great emphasis is laid upon it. Workers participation is also
ensured before basking on any new project like introduction of a new
machine a new incentive scheme, changing the layout of any particular
section of the shop floor etc.e.g. the management formally discusses the
project of changing the layout of the forming section with the union
members in a meeting.
At Chakan factory all kind of statutory obligations related to welfare
activities, maintenance, social security are adhered strictly thereby ensuring
a healthy and peaceful industrial relations and work ambience.

Disciplinary actions
There are number of acts of commissions on part of a workman that shall
amount to misconduct like:
Willful insubordination
Going on illegal strike
Willful slowing down of work
Theft, fraud or dishonesty
Taking or giving bribes
Habitual absence.
52

 Late attendance.
Engaging in trade.
Drunkenness, Riotous, Disorderly or Indecent behavior.
Habitual neglect of work.
Holding meetings inside the premises
Gambling etc.
The department concerned generates reports about any kind of misconduct,
depending on the misconduct, corresponding disciplinary actions are
initiated. In case of misconduct like sleeping during work hours, absconding
from work without any information, late coming, etc. censure or warnings
are given to the workers.
In case of other grave misconduct like negligence of work, absenting without
leave, theft etc. the worker is suspended from work ranging from 1 to 4 days
and then a charge sheet is issued against him to carry out the domestic
inquiry thereby abiding by the principal of natural justice.At Chakan factory
a chronic absenteeism report is prepared once in six months to track down
the record of the workmen who constantly absents himself from work. They
are warned, suspended, charge sheeted and if absenteeism is found chronic
and beyond improvement then the workmen will be dismissed after the
completion of the domestic inquiry.The company also refers the some
disputes for conciliation, Arbitration and Adjudication as and when needed.
Grievance handling procedure
As per the statutory requirement, CHAKAN factory has a well laid out
procedures to handle any kinds of grievances that might arise among
workmen.

53

The grievance settlement authorities are set up for the settlement of

Industrial Dispute connected with an individual workmen employed in the
establishment. The grievance is generally dealt with giving due importance
and consideration to various factors like
Whether the grievance is the result of an issue already under
consideration or that has already taken place in the past.
The extent to which the issue will have an impact. It will affect an
individual or a large mass of workers.
Whether the reason for the dispute is genuine or related with other
issues.
The grievance is generally referred to a grievance settlement authority,
comprising of the department / unit / section head or to the personnel
department. The grievance is handled through mutual discussions between
the aggrieved parties or sometimes a union of which the aggrieved worker is
a member.
Its always advisable to settle any kind of dispute through grievance
settlement authority before it goes on for conciliation, arbitration and
adjudication in the court of law.

54

welfare

55

Mahindra and Mahindra provides protection ,safety and health of

everyone in your workplace, including people with disabilities ,and
provided welfare facilities for their employees

Health
Ventilation and temperature
Lighting
Drinking water
Latrines and urinals

Safety
Fencing of machinery
Work on or near machinery in motion
Provisions relating to pits,sumps,opening in floors etc
Protection of eyes

56

Welfare
Washing facilities
Storing and drying of wet clotting
First aid box
Ambulance
Canteens
Dining hall
Shelters, rest rooms, lunch rooms.

57

CONCLUSION:
Overall, level of Satisfaction of work is quite good.
There are still many more improvement areas such as canteen facility,
commutation facility
HR services are running smoothly and the department accepts changes
very easily..
Employees see their

career

growth with Mahindra

vehicle

manufacturing Ltd.
MVML value the employee satisfaction a lot, in this view employee
satisfaction level is 94 %.

System though driven practices such as: Goal sheet preparation, performance
management system etc. are showing 100% score. This means improvement
can be done in those services which are manually driven.

SUGGESTIONS:
58

Lastly, with confidence I can say that my short association of learning

process has been a unique and valuable one but for active and positive
response of the head of the Personnel Department probably it would not have
been possible.
I wish a very bright future for Mahindra Vehicle Manufacturers Limited.

ANNEXURE
59

Sr.

Question

Answer Mode

No.
1

Did your immediate superior facilitate your induction into the YES / NO

2
3
4

department?
Are your clear about administrative policies and HR policies?
Are you clear about how Performance Pay is calculated?
Are you comfortable in your department?

YES / NO
YES / NO
YES / NO

Is your leave card uploaded to system?

YES/ NO

6
7

Is your goal sheet prepared in consultation with your superior?

YES / NO
Do you see alignment between your MOPs and Organizational YES / NO

goals?
Do you feel your job is contributing to your learning & YES / NO

development?
Does your superior give you feedback about your performance YES / NO

10
11

occasionally?
During this period, is any recognition and praise given to you?
YES / NO
Do you see any growth opportunities in this organization for YES / NO

12
13

yourself?
Do you see yourself working for Mahindra group, after 2 years? YES / NO
Will yourecommend our organization, to work for?
YES / NO

14

Is your probation appraisal given to you?

YES / NO

15

Is your confirmation letter given to you?

YES / NO

16

Are you satisfied with the speed of the decision making at your YES / NO

17

work place?
Did you attend any of each-out communication meeting?

YES / NO

BIBLIOGRAPHY

1.

Aswathappa K, Human resource and Personnel management

Mahindra vehicle manufacturing Ltd. HR Polices
Web sites:
M-connect Employee portal
60

2. www.unilawonline.com

61