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A Study on effectiveness of Performance Management system

CHAPTER-3
COMPANY PROFILE

Bharat Earth Movers Limited (BEML) incorporation in May 1964 with its corporate
offices at Bangalore and commenced operation from 1st January 1965, the production units of the
company are located at Bangalore, Kolar Gold Field and Mysore in Karnataka and Pallakad in
Kerala. The company is engaged in the production of rail coaches, rail bus and Direct Current
Electrical Multipurpose Unit for Indian Railways, heavy duty trucks/its variants, crash fire
tenders, heavy recover vehicles, PMS bridges and earth moving equipments and aggregate for
Defence. Other major customers of BEML are Coal India Limited, Naively Lignite Corporation,
Associated Cement Company, Steel Authority of India Limited and the National Hydro Electric
Thermal Power Corporation.
BEML is a premier ISO 9000 company in India and the second largest manufacture of
earth moving equipment in Asia. A three-decade-old multi-location and multi-product company,
BEML has vital application in diverse sector of economy such as coal, mining, steel, cement,
powder, irrigation, construction and road building and railway. It has expanded its product range
to cover high-quality hydraulics, heavy duty diesel engines, welding robots and undertaking of
heavy fabrication jobs.
A public sector undertaking, BEML commands 70% market share in domestic earth
mover industry. Nearly 40% of its quality has divested to financially institution and public.
BEML has its corporate headquarters and central marketing division at Bangalore.
BEML manufactures wide range of products to meet the needs of mining, construction,
power, irrigation, fertilizer, cement, steel and rail sector. The earth moving equipment includes
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A Study on effectiveness of Performance Management system


bulldozers, dump trucks, hydraulic, excavators, and wheel loaders, rope shovels, walking
draglines, motor graders and scrapers.
BEML has recently introduced road headers and slide discharge loaders for underground
mining application. Railway products include integral rail coaches, electrical multiple units, rail
buses, track laying equipments and overhead equipment inspection cars.
BEML manufactures heavy duty trucks and trailers and hydraulic aggregates for
transportation sector. The company also manufactures high power diesel engines and heavy duty
hydraulic aggregates to meet specific customer requirements. The company plans to diversify
into varied activities including underground mining equipment, underground for petro-products,
leasing and financial services and joint-ventures abroad.
BEML is rated as the first amongst the fastest growing construction equipment in India. It
is today leading the infrastructure revolution in the country with successful foray into hi-tech
metro trains. Beings a multi-technology, multi-unit and multi-location company, BEML offers
high quality products for diverse sector of the economy such as coal, mining, steel, cement,
powder, irrigation, construction, road building. Defence, Metro and Railways. It has come to the
forefront of heavy engineering industry with a track record of growth and profit in the last for
decades.
With increased focus on quality, safety and productivity, BEML is evolving new
technologies and aiming at value-addition in all its process and products.
The companys manufacturing facilities are certified under ISO 9000-2000 series. Its
strategic alliances with global partners have ensured a continuous flow of state-of-art
technologies and gain international competence. With impetus on market driven R&D, BEML
has rolled out several innovative products.
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The Company has partially disinvested and presently Government of India owns 54
percent of total equity and rest 46 percent is held by Public, Financial Institutions, Foreign
Institutional Investors, Banks and Employees.
The company has been registering consistent growth in sales and profits and has made a
turnover of ` 3,558 Cr in 2009-10 registering a growth of 18% over the previous year with a
Profit Before Tax of ` 320 Cr and has orders on hand of over ` 5,000 Cr as of end March 2010.
The Company has drawn up VISION 2013 with an ambitious growth rate of 12%
CAGR for crossing ` 5,000 Cr turnover by 2013-14 coinciding with BEMLs Golden Jubilee
year. With this emerging prospects, BEML has plans to cross ` 5,000 Cr in the next 2 years and is
poised to achieve ` 10,000 Cr mark by 2016-17 and the company is gearing up with necessary
infrastructure for achieving the same.
The company is established R&D centre of excellence for metro technology to match
world-class standards with grants received from planning commission, government of India.
BEMLs nationwide network of sales offices enables buyer with ready access to its wide range of
products and services.
Its service centre, repair shops and parts depots total equipment care and availability of
machines through prompt after sales-service. Today BEML brand of products are popular in
over30 countries across the world in Asia, Africa, Europe, Middle-East and Latin America. The
company is in the process of opening overseas offices at Singapore and China.

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BACK GROUND AND INCEPTION OF COMPANY


BEML is a PSU (Public Sector Undertaking) under the effective administration of Ministry of
Defence (department of Defence supply). The organization was setup in the late 40s as part of
HAL now know as HINDUSTAN AERONAUTICS LIMITED to manufacture rail coaches. It
gradually diversified earth moving equipment in 1964. The company was incorporated in the
first five year plan when India was very weak economically. The main objective of setting up the
organization was to manufacture heavy earth moving equipment. Rail coaches heavy duty trucks,
trucks-laying equipment etc.

NATURE OF BUSINESS
BEML is equipment manufacturer for the industries such as construction and mining,
Defense, aviation, Metro and Railway sector.
CONSTRUCTION AND MINING
For development in surface mining projects, BEML produces machines such as electric shovels,
hydraulic excavation, bulldozers, wheel loaders, wheel dozer, dump trucks, motor grades,
pipelines and tyre handlers. Besides, giants walking draggling for cost effective operations in
the open cost mines are manufactured. BEML has diversified into underground mining with
products such as side discharge loader, load haul dumper, winch winder, randy car and skip etc.
BEML has an active fleet of machines to take up works related to road construction,
infrastructure, development, port handling, tuning boring and petroleum projects. The company
is floating a joint venture soon to take up contract mining and maintenance of mining
equipments.
DEFENCE AND CIVIAL AVIATION
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BEMLs multi-role vehicle and transportation trailers have found total
acceptance with arms forces.
The company has started manufacturing the entire range of value added TATRA
vehicles. Which are robust and suitable for all terrain operation including bridges layer
field artillery, tractor, medium/heavy recovery vehicles and pontoon mainstream bridge
system, BEML also supplies engineering mine ploughs, armoured recovery vehicles and
weapon loading equipment. For the civil aviation sector, BEML offers passenger
Aerobridges, crash fire tender and aircraft towing tractor.
METRO & RAILWAY SECTOR
BEML is today geared up for manufacturing and supply of high-tech stainless
steel metro to upcoming urban infrastructure projects in various cities
Other products supplied for Indian railways include integral rail coaches,
overhead inspection cars, track laying equipment broad gauge rail bus, treasury vans
and spoil disposal vans. It also offers electric multiple units for development in
suburban services.
The company also manufacture heavy duty diesel engines, diesel generators sets
and hydraulic aggregates. BEML has entered into alliance with international partners for
several new products which includes multi utility armed vehicles, mine laying vehicles,
long wall mining system, tunnelling equipment, mine protected vehicles, surface miners
etc.

COMPANY VISION
To become a market leader, as a diversified company supplying products and services to
Mining & Construction, Railway & Metro and Defence Services and emerge as an International
Player.

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COMPANY MISSION
Improve competitiveness through organizational transformation and collaboration /
strategic alliances / joint ventures in technology.
Grow profitably by aggressively pursuing opportunities in national and international
markets.
Attract and build people in a rewarding and inspiring environment by fostering creativity
and innovation.

COMPANY OBJECTIVES
To maintain a dominant position in design, development, manufacture and marketing of
Defence, Earthmoving and Construction and Rail & Metro equipment.
To diversify and grow.
To provide total engineering solution to its customer.
To internationalised operation by enhancing exports.
To maintain state-of-art technology for all products.
Re-orientation of the business operation to match the present scenario.
Continues building of skills and competencies to bring about executive effectiveness for
management succession.

QUALITY POLICY
QUALITY IS THE HALLMARK OF EXCELLENCE
At BEML, a corporate quality policy emphasizing total quality management
ensures the quality system adopted companywide to meet stringent standards and
requisite performance criteria. A separate quality spearheads the thrust towards total
quality. All manufacturing units in the company are under ISO 9000-2000 certification.
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BEML equipment works in hospitality terrain under gruelling operation condition.
In order to ensure optimum performance of equipment each product is tested in working
condition. In order to ensure optimum performance equipment each product is tested in
working conditions in the companys own track and fields.
Vendor assessment and development is a key component of the companys
strategy for achieving total quality.
Experience professional work with vendors to improve directions to the quality
improvement activities.
To offer products and services to the satisfaction of customers and strive to
upgrade quality continuously is the quality adopted in BEML.

PRODUCT PROFILE:
BEML products that are Machine that build the nation find their application in core
sector of economy in the country viz, mining, agriculture, energy, irrigation, cement, steel,
construction, rail and road transport apart from Defence.
The company has three ranges of products like earth moving equipments, Defence
products and railways products.
The earth moving equipments include bulldozers, dump trucks, hydraulic excavators,
wheel loaders, wheel dozers, tyre handlers, pipe layers, rope sholves, draglines, motor grades,
scrapers, water sprinklers, aircraft towing tractors and backhoe loader. BEML has recently
introduced road headers and side discharge loaders for underground mining application, tracking
laying equipment, inspection cars. BEML manufactures heavy duty trucks and trailers and
hydraulic aggregates for transportation sector. A part from this, BEML also radio controls
disaster management equipment in case of emergency.

BEML PRODUCTS:
Mining Machines.
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Electric shovels.
Bulldozers.
Wheel dozers.
Dump trucks.
Motor graders.
Pipe layer & tyre handler.
Giant walking draggling for cost item.
DEFENCE EQUIPMENTS
BEML-TATRA T815 VVNC8*8 vehicle.
BEML-TATRA T815 VVL8*8 vehicle.
BEML-TATRA T815 VVTI8*8-Tank Transportation.
BEML-TATRA T815 VVNC6*6 High Mobility Vehicle.
BEML-TATRA T815 VVNC6*6 Field Artillery Tractor.
BEML-TATRA T815 VI4*4 High Mobility Vehicle.
PRITHVI missile launcher.
OXIDISER carrier.
WA RDHEAD carrier.
FUEL carrier vehicles.
MISSILE Transport.
10T mobile crane.
Ammunition Loader.
Pontoon Bridge set.
Pontoon Truck.
Truck Mounted crane.
Pavement Laying Truck.
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Dolly.
Light Recovery vehicle.
Armoured Recovery vehicle.
Backhoe loader transport.

RAILWAYS:
Passenger coaches.
DC electrical multiple units (DC-EMUS).
AC electrical multiple units (AC-EMUS).
Track laying equipment.
Rail bus.
Spoil disposal units (SDU)
Treasury vans.
Mill rail coaches.
Metro cars.
OHE cars.
DIESEL ENGINES:
100-1000hp engines for contribution and mining equipment.
Irrigation pumps.
Marine vessel engines.
Compressors.
ROAD CONSTRUCTION EQUIPMENT:
Batching and mining plans.
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Vibrating compactors.
Pneumatic-tried rollers.
DIASTER MANAGEMENT EQUIPMENT:
Radio-controls dozers.
Hydraulic excavators with demolition attachment.
ENERGY:
Diesel genets-230, 360, 550KVP.
INDUSTRIAL AND AUTOMATION:
Industrial welding robots,
Machine tending robots.

AREA OPERATION:
BEML being a public sector undertaking operates well in the global market also. The
companys international divisions are involved in large trading as well as counter trade
in countries worldwide covering Asia and Middle East besides entering into European
market through UK, Italy and Greece.
The company commenced its overseas operations in 1969-70 and has exposed earth
moving equipments, rail coaches and spare parts valued at several million US$ to countries all
over the world.
As a recognized export house, BEML has expanded operation to include export of
engineering goods, Defence items commodities and undertaking of project management and
turnkey contracts. Despite the pressure of highly competitive market for heavy construction and
mining equipment, BEMLs Export is attributed to good quality equipment and very efficient
after sales services. Fully satisfied with the BEMLs services, customers in several countries have
been placing repeat orders for the companys equipment.
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The company is looking at global market for future growth several countries have been
identified for making a foray. In keeping with this, the export target for the year 2009-2010 has
been fixed at over Rs 500 crores which are stiff considering the strong foothold of competition in
the world market. Exports were made to countries like Syria, Tunisia, South Africa, Afghanistan,
Bhutan, Abu Dhabi, Jordan, Bangladesh and Suriname in Latin America.

ORGANIZATIONAL CHART
CMD BEML

DIRECTOR
FINANCE

DIRETOR
PRODUCTION

DIRECTOR
MARKETING
GG

DIRECTOR
HR

EXECUTIVE DIRECTOR BANGALORE COMPLEX

GENERAL
MANAGER
BOARD OF DIRECTORS
Sri VGENERAL
R S Natarajan
DEPUTY
MANAGER
Chairman
& Managing Director
ASST. GENERAL
FUNCTIONAL
DIRECTORS
MANAGER
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SENIOR MANAGER
ASST.
WORKER
OFFICER
MANAGER

DIRECTOR
R&D

A Study on effectiveness of Performance Management system


Sri V Mohan
Director (Defence)
Shri M.Poongavanam
Director (Mining & Construction)
Shri P Dwarakanth
Director (Metro&Rail)
Shri M Pitchaih
Director (Finance)
Shri M Nellaiappan
Director (HR)
OFFICIAL DIRECTORS
Shri Satyajeet Rajan
Jt.Secretary (Exports), Ministry of Defence
Shri P.K Mishra
Addl Financial Advisor & Jt. Secretary, Ministry of Defence (Finance)
INDEPENDENT DIRECTORS
Sri J P Singh, IAS (Retd)
Sri M B N Rao
Sri J P Batra

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VARIOUS DEPARTMENTS
FINANCE DEPARTMENT
HIERARCHY OF FINANCE DEPARTMENT
CHEIF GENERAL MANAGER BANGALORE COMPLEX

DGM

MANAGER
COSTING

MANAGER
BOOK
KEEPING

MANGER INTERNAL
AUDIT

MANAGER MAT
A/C

MANAGER BILLS
RECEIVABLE

SR.MANAGER
BILLS
PAYABLE

ASST.
MANAGER
PURCHASE
SCRUTINY

Central College, Bangalore

GENERAL
MANAGER

OFFICER
CHEQUE
SYSTEM

ASST.MANAGER
PAY ROLL
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ASST.
MANAGER
PROVIDENT
FUND

A Study on effectiveness of Performance Management system

INTRODUCTION
It is a management activity, concerned with the planning and controlling of firms
financial resources. Great interest to the academicians & the practicing managers are interested
in the subject because among the crucial decision of the firm are those related

finance. The

working capital requirement was from the internal resources and cash credit facilities from
banks. The company capital structure consists of only equity & there is number department.
There are eleven sub section working under finance department
Pay roll
Bills payable
Bills receivable
Cash office
Provided fund office
Costing and Budgeting department
Purchase scrutiny
Material account
Book keeping
System appraisal (Audit)
1. PAY ROLL
The main function of payroll covers the following:
Placement of time punching cards in time card racks for recording attendance.
Receipt of approved leave application, O.T, authorization, attendance sheets,
employees gate passes etc.
Maintenance of leave records and feeling of attendance data to computer with
reference to the document received.
The computer or data processing section prints out payroll or pay bill or pay
sheets in duplicate or triplicate as required. Where two copies are printed the
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original is used for obtaining acquaintance from employees and duplicate is
retained by the pay roll section for record purpose.

Disbursement of salaries and wages.


Payment and recovery of advances.
Recovery of dues from employees.
Payment of travel advances and adjustment there off
Reimbursement of expenses like medical, conveyance, school fees etc.
Remittance of amount recovered from employees to various agencies.
Accounting of all pay roll transactions.
Maintenance of employees cards.
Miscellaneous.
The following major according registers and subsidiary ledgers or registers are

maintained in this section


Leave record ledger or register.
Salaries and wages journal.
Travel expenses journal
LTC expenses journal.
Loan registers.
Advances register for
Travel advances.
LTC advances.
Salary advances.
Vehicle advances.
Festival advances or contingency advances.
Incremental register.
Unpaid wages register.
Conveyance reimbursements register.
Remittances register of recoveries.
Register for reimbursement of other expenses.
2. BILLS PAYABLE
This bills payable department in BEML is highly sophisticatedly diversified. The
bills payable role will start after material requirement planning is done then the tender
are put forward to the vendor only to those who are registered with BEML (approved
vendor list). Then the question is received only from those vendors who are rated as L1
is selected and order is placed.
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A copy of the purchase order is received by the bills payable department. The
purchase order contains the vendor name, the material order for quality, value, the tax to
be paid on the purchase or if there is any exemption under the central excise duty if so
avail it on the purchase
After the goods are received, the RR group prepares a receipt report after the
stores department verifies the goods & even a pay order is prepared & forward it to the
bills payable department. The bills payable department compares the purchase order
sheet with receipt report for any verification. The release for payment is passes on to the
cheque-processing department.
If the goods are not delivered within the specified period or time then BEML
deducts 5% as penalty on the payment.
Any purchase beyond 50 lakhs is referred to the chief managing director. In
BEML the credit policy followed for payment in 60 days.
The bills payable section further divided into two sub-divisions. They are:
Bills payable-Inland.
Bills Payable-Foreign.
BILLS PAYABLE-INLAND
This section deals with the following aspects of supplies and services rendered by
inland vendors to the company.

Payment and accounting of advances to supplies.


Payment and accounting of advance to other vendors.
Payment and accounting of final bills.
Bank dealing with relation to suppliers.
Adjustment/recovery of advances.
Accounting and pricing of receipt vouchers.
The following major accounting register and subsidiary accounting register are

maintained in this section:


Inland purchase journal.
Inland service journal.
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Advance journal.
Insurance claims journal.
Sundry creditors register.
Advance to supplier register.
Miscellaneous advance register.
Letters of credit register.

In addition to these accounting records, subsidiary register are also maintained by


this section:
To watch the flow of bills and invoices into the section and their clearance.
To watch the flow of other document from bank and their clearance and
To watch the flow of receipt voucher from stores or purchase department and their
clearance.
These register are as follows:

Service bill register.


Agency commission bills register.
Freight bill register.
Purchase order register.
Other periodical expenses register such as telephone, telex, electricity, water, rent
and property.

BILLS PAYABLE FORIEGN


This section deals with the following aspects of supplies and services rendered by
foreign vendors or collaboration to the company.

Payment and accounting of advances to supplies.


Payment and accounting for services obtained from collaboration and others.
Payment and accounting of contractual fees (licence fees, royalty, etc).
Payment and accounting of customs duty, freight bills agency, commission bills

etc.
Payment and accounting of final bills.
Accounting and pricing of receipt vouchers.
Opening of letter of credit and dealing with banks for obtaining foreign exchange
release and payment there off.
Maintenance of deferred liabilities account.

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The following major accounting register and subsidiary accounting registers are
maintained in this section.

Foreign purchase journal.


LC registers.
Goods-in-transit register.
Contractual payment registers.
Advance to supplier register.
Sundry creditors register.
Deferred liability register.

In addition to the above accounting records the following register are also
maintained in this section.

Foreign purchase order registers.


Agency commission bills register.
Bills of entry register.
Foreign bills register.
Foreign claims bill register.
Foreign consignment freight bills register.
Insurance bills register.

3. BILLS RECEIVABLE:
It is responsibility for the preparation and submission of invoice for the
equipment and spare parts sold; service rendered, followed up for the collection
&accounting of sales & all other works connected to the sales like filling of commercial
tax return etc.
Functions
Register &scrutiny of sales order pertaining to equipment & spare parts including

export.
Preparation &submission of invoice to customer for payment.
Accounting of sales.
Compliance of sales tax returns.
Review of balance in the customers account on a frequent basis.
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Records maintained:

Sales order register.


Stage payment register.
Dispatch advice/invoice register.
Sales journal.
Sundry debtors ledger.
Register of export sales.

4. CASH OFFICE
This section is responsible for all payments of cash, cheques & accounting same
in the books of accounts.
Function:

Receipt of cash, cheque & bank draft etc & issue of official receipts for the same.
Follow up/watch for the transfer of funds to & from regional/district offices.
Operations of bank accounts.
Cash disbursement to payroll for the payment of salaries & wages & other

payments.
To check the bank statement.
Reconciliation of inter transfer of funds transaction.
5. PROVIDENT FUND
This deals with the provident fund of the workers & the employees & it deals with
the family provident fund, employees deposit insurance schemes, gratuity fund
and group saving linked insurance plan.
It also provide other activities like investment of PF accumulation in approved
securities, final payment of on the termination or on the death of the person,
declaration of the person, declaration of the PF accumulation in approved
securities, declaration of the PF interest & crediting it to the members accounts
etc.
6. COSTING AND BUDGETING DEPARTMENT
Costing and Budgeting department is a very important area concerned to the
company. Costing takes care of all the expenditure concerned to the production. This
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department will calculate all the overhead cost and they will identify the area where
costs can be reduced. These reports they send it to the planning department and the
planning department will in turn send this to the IE & MS department as part of annual
cost reduction plan. Budgeting will be done for every financial year and the funds will
be allocated for each and every activity. These will help to maintain the working capital
and funds property.
7. PURCHASE SCRUTINY
Purchase is considered to be very important function in a firm. Therefore,
scrutinizing the purchase procedure is also as important as purchase itself.
The main function of this section is to scrutinize the purchase orders.
This section will assist the purchase department in deciding on the purchase order.
All information of the purchase department will be scrutinized i.e. from the time
request for material is placed till the purchase order being placed.
Coordinating with the department during the tender formalities also.
8. MATERIAL ACCOUNT
This section is responsible for accounting the material held in the holding stores by
accounting all the receipts & issue documents. The accounts is done in quality, value &
also in charge of accounting of material issued for subcontracts of fabrication, sent on
loan basis, sent for rework/recommendation & stock transfer to other departments.
Functions:
Maintenance of material ledger in the computer system for all items of the
material held in the stores, investment account wise & store wise by accounting
the receipts & issue to the production & other accounts & releasing the accounting
entries.
Reconciliation of the value of inventory as per the material ledger with the general
ledger figure.
Reconciliation of the quality balance against the items in bin card with the
material ledger balance by rendering the required assistance to the stores
department.
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Accounting & control of the material issued to the sub contract for the
fabrication/completed items as well as loaned items.
Scrutiny of the list of non moving surplus items as well as loaned items.
Accounting for scarp disposal orders.
Books maintained:

Material ledger.
Inventory accounts.
Ledger for material issued to sub contractors.
Register for scarp/surplus items dispatched.
All store documents relating to stock accounting.

9. BOOK KEEPING
This section is completely responsible for the maintenance of the complete
financial records all the accounting section sections present in BEML have to report to
this book keeping section. This document constantly keeps in touch with other
department for information pertaining to sales & purchase, investment, loans, advances
& other details for the profit & loss account & balance sheet which is to be prepared at
the end of the year.
BEML comes under the ministry of defence which has its own set of rulers
which governs the administration of the company but still it follows the rulers &
regulation laid down in the companies ACT of 1956.
This section is also responsible for the reconciliation of accounts of other
divisions, it also charges the depreciation on the assets of the company & is responsible
to answer the government audit & also entered with the work of the tax audit report.
10. SYSTEM APPRAISAL (AUDIT)
Auditing is very important for every organization. Therefore, BEML established a
separate section for its auditing purpose. Auditing is conducted on continues basis.
Internal as well as external auditing is done in this organization. All transaction,
accounts are audited by the internal staff, statutory audit is done by the external
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organization which includes CA & BEML being a PSU under the ministry of defence
audit is done by the Government also. There are three types of audit being done which
are as follows:
Transaction Audit
Statutory Audit
Government Audit

HUMAN RESOURCE DEPARTMENT


HIERARCHY OF HUMAN RESOURCE DEPARTMENT
DIVISION HEAD BANGALORE
COMPLEX

DEPUTY GENERAL MANGER

ASST. GENERAL MANAGER

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SENIOR MANAGER
ASST.
MANAGER
OFFICER
MANAGER

A Study on effectiveness of Performance Management system

HRM is planning, organization, directing& controlling of procurement, development,


integration, maintenance & separation of human resources to the end those individual,
organization & social objectives are accomplished.
HR VISION
HR will be Dynamic, pro-active & strategic Business Partner to enable BEML to
maintain its leadership position in all its Business Domains.
HR MISSION
To continuously innovate, evaluate and religion HR practices with the
environment, business strategies/directions and expectation to maintain relevance
and to attract nature and retain talent.

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To foster a spirit of creativity and innovation amongst the employees by facilities
creation of a rewarding, inspiring and motivational organization climate.
To act as a champion of change and managing the people implication of
organization changes.
HRM IN BEML CAN BE DIVIDED IN TO FOLLOWING DEPARTMENTS:
Welfare.
Establishment
Training & development

Disciplinary
Time office
House keeping
Canteen
Horticulture
Training centre

WELFARE:
As the name states the main aim of this department is to ensure the welfare of
the employees in various fields. It caters to the requirements of employees. Various
benefits being provided are as follows:
TRANSPORTATION
This department provides transportation facilities of the employees to the
factory. Various functions of this section are issuing bus passes, processing bills,
correspondence with BMTC, surprise checking & monitoring, cost reduction measure,
maintenance of files, cleanness of bus yard etc.
MEDICAL
This section deals with the medical treatment & facilities being provided
to the employees. Various activities being performed are conducting various health
programmes i.e. pulse programme, free health camp, eye check up, skin check up,
diabetic check up, conducting various training programme, first aid training, checking &
compliance with ESI Act Provisions, Blood donation camp arrangement & so on.
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CANTEEN
This department ensures daily visit to canteen during breakfast & lunch
hour, coordinating with the canteen officer for canteen activities, framing rules &
regulation to regulate the canteen services.
HOUSING /TOWNSHIP
Conducts regular visit to township for beautification & handling the
grievances of township offices/employees. Coordinating with the committee for smooth
function of development work. Checking the day to day activities, planning for revenue
generation.
OTHERS
Various other functions being carried out by this department are providing
uniforms, shoes, dairies, coordinating with stores for smooth distribution of activities,
small savings, and distribution of Sodexho coupons, settlement of death accounts,
implementation of welfare activities & policies, conducting election for BEMEA &
other elected bodies, meritorious awards, attending accident cases, handling the
complaints boxes, school management, counselling the employees & so on.

ESTABLISHMENT
This section is considering as the back bone of HRD. It contains all the matters relating
to an employee i.e. form the time he joins the firm till he leaves. It performs various
functions such as maintenance of personal files, issues relating to promotion, wage
fixation, recruitment, issuance of various certificates like service, salary, NOCs etc. the
company has a total strength of 12573 comprising 2708 offices & 9865 employees. The
following is the strength of the man power in Bangalore Complex as on 1-5-2010.
WAGE GRADE
S4
S3

CATEGORY
SENIOR SUPERVISOR
SUPERVISOR
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Central College, Bangalore

NO. OF WORKERS
200
460

A Study on effectiveness of Performance Management system


S2
S1
E
D
C
B
A
TOTAL

JOINT SUPERVISOR
DEPUTY SUPERVISOR
MASTER SKILLED
HIGHLY SKILLED
SENIORN TECHNICAN
TECHNIAN
UNSKILLED

135
666
229
392
270
90
12
2454

REPRESENTATION OF SC/ST/EX-SERVICEMEN

Category/
group

No. of SC/ST and Ex-Servicemen

Total Strength as
on

Scheduled caste

Scheduled tribe

Ex-servicemen

1.1.08

1.1.09

1.1.08

1.1.09

1.1.08

1.1.09

1.1.08

1.1.09

GROUP A

1569

1517

239

221

47

45

16

10

GROUP B

855

1234

135

198

35

61

GROUP C

9501

9656

2045

2080

366

375

392

375

GROUP D 89

130

33

47

TOTAL

12537

2452

2546

448

486

414

392

12014

The function of this section relating to various areas as follows:


RECRUITMENT
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Recruitments in BEML are based on the requirement for maintaining different
operators of the company. The requirements in turn are associated by IED keeping
in view the operational requirements & succession planning.
Recruitments are normally made through employment exchange; walk-in or
openings are published in the web site/advertisement in news papers etc.
In respect of ex-service personnel the recruitment are based on the list provided by
ex-serviceman organization of Government of India.
Due reservation concession are provided to

candidates

belonging

to

SC/ST/OBC/Physically Handicapped etc.


Medical examination & all the verification will be done.
After recruitment the candidates will be probation as per company policy &
confirmation of the post will be based on the satisfactory performance.
Any false data being provided will lead to the termination of service.
All the recruitment will be done by the corporate office.
PERFORMANCE APPRAISAL
It is very important for any organization to review the performance of its
employees periodically.
The appraisal is done annually for both employees as well as officers based on
rating scale.
Employees are rated by their immediate superior based on their performance
throughout a year. Employees service record is an important document which
indicates the performance with reference to various parameters mentioned in the
document.
No feedback is provided to the employees.
In case of officers key performance area will be determined at the beginning of the
year between the officer & reporting authority to enable the officer to achieve the
target set.
Self appraisal will be done by the officer & then will be reviewed by the
concerned authority & the rating is given.
WAGE AND SALARY FIXATION

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Central College, Bangalore

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One of the most important functions is to fix the salary based on the scales
fixed by the management. Various allowances are given which are described as follows:
The employees are paid on monthly basis; the components of salary are Basic pay,
DA, HRA etc.
Various allowances given are night shift allowances, Contingency allowances,
lunch

allowance,

transport

allowance,

Reimbursement

of

entertainment

expenditure, reimbursement of internet broadband charges etc.


Incentives are also given to the employees as well as the officers as per the
provisions.
Advances are provided for the purchase of vehicles, computers, house building
advance, leased car facility to senior officer etc.
PROMOTION
Promotion is given based on the seniority as well as the performance basis.
Once certain year of service is completed by an employees automatically he is posted
to the next level. In case of extra ordinary performance also before the tenure itself an
employee will be promoted.
TRAINING AND DEVELOPMENT
Each and every person is lacking some or the other skills which can be
improved but providing training as per the requirements. This section looks into the
training needs of the employees as well as the officers. It is done annually or as & when
required. Various activities being performed by this section are as follows:
Training needs differ from employees & officers. It also differs based on the grade
of each of employees & officer.
Each department identifies their training needs & inform to this section.
All needs of the entire department are consolidated & plans are being made
regarding the training to be provided & informed to the management regarding the
budget of the training programmes.
Training calendar will be made stating the programmes to be implemented that
matches the needs.
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Decision will be taken regarding who will train i.e. internal or external people.
Training is given based on various levels. It differs from each level based on the
innovation, competition level etc.
Training will be given for the overall development of an individual which helps
both in case of work as well as personal life.
Feedback will be collected from the employees after they are trained. Ratings are
given based on the set parameters.
Changes will be implemented in the next programmes from the feedback
obtained.
Training undergone will be recorded in each employees profile which can be
referred in the future for any purpose.
This record will help the department to avoid unnecessary training being given to
same employee without having the knowledge of the past training being provided.
This helps the management to reduce the cost.
Training needs are given in various areas such as Technical programmes,
Industrial safety management, Soft skills, quality improvement programmes,
Inventory management, Finance, Marketing & General.
Some of the training programmes are Awareness on safety, occupation safety. Soft
skills like communication & presentation skills, problem solving & decision
making, stress management, Awareness programme on ISO 14000, Total Quality
Management. General training which includes yoga, computer training, health
programme etc.
DISCIPLINARY
In every organization there are set rulers & regulations to be followed by the
employees. In the event of violation of standing orders, disciplinary action as deemed fit
will be initiated by this department. All matters relating to the problem of the employees
regarding violation of the rulers will be handled by this section.
TIME OFFICE
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Attendance is an important aspect in any field. Therefore it is necessary to
maintain the record of employees attendance. In this case each employees entry & exit
time will be recorded & for this purpose punching is being used. If any employee has to
go out during the working hours gate pass will be issued by the department head & also
recorded in the books of the security.

HOUSE KEEPING
Cleanliness is very important to be considered in any organization as it conveys
a message about the image of the firm to the outsiders. Therefore, a separate section is
formed by the organization in order to maintain the cleanliness of factory premises.
CANTEEN

BEML is having three canteens which provide food to all employees.


Seating capacity 4000-4500.
Cost Rs. 5 per meal employees.
Purchases are done from Government agency.
Order will be placed for 1 year except vegetables.
Total requirement of rice 800 kg per day.
Total cost Rs. 75000-80000 per day.
Wastage 2%- 3% per day.
Total number of canteen staff 100 (No woman employees).

HORICULTURE
For any organization greenery adds to its beauty. So the firm has made a
separate section to look into the gardening/beautification of its firm. BEML has
achieved various awards for its beautiful garden.
TRAINING CENTRE
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This is another section which is different from the training & development
section. This section mainly focuses on the training requirements of the apprenticeship
for various types of technical & non technical training for a specific period. It does not
look into the training needs of the employees.

GRATUITY ACT (1972)


Employees drawing more than Rs.35000 & who have put in continuous service
for not less than 5 years for eligible for gratuity.
When Gratuity is not payable
Partial Forfeiture:
When employees causes any damage to the countrys machinery
equipment provided the principle of national justice is employed.
Full Forfeiture:
In case of riotous or disorderly behaviour of the employee inside the
factory & in case of moral turpitude like theft etc.
CALCULATION
Salary for this purpose includes Basic, DA
= (LAST SALARY DRAWN) *15* (COMPLETED YEARS OF SERVICE)/26
PERFORMANCE APPARAISAL, PROMOTION, MAN POWER PLANNING
PERFORMANCE APPARAISAL
Performance appraisal is done by the method of MBO (Management by Objectives)
PROMOTIONS
For employee category the promotion are done once in 4years regularly.
Sometimes it may become 5 years because of miss behaviour of employee.

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In case of executive section it is based on performance of an executive & it is not
based on management objectives.
MAN POWER PLANNING
Man Power Planning is done in production department based on the
requirement to complete the yearly order. Contact workers are appointed to do extra
work & also night 11.00 PM to 6.30 AM is considered as overtime (OT) to complete the
order. Administration of man power planning is done based on the available work in the
respective department.

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