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HRM Project

Larsen & Toubro
Group 6
Submitted by
Ankit Kumar Varsaney (14PGP071)
Jaysun Antony Alumkal (14PGP083)
Kumar Prashant (14PGP085)
Nirupama Singh (14PGP088)
Shishir Kumar Sharma (14PGP098)
Akhil Yerawar (14PGP104)

Table of Contents
Company Overview.................................................................................................... 4
History........................................................................................................................ 5
Early Days............................................................................................................... 5
The Journey............................................................................................................. 6
Public Limited Company.......................................................................................... 6
Expanding Horizons................................................................................................. 6
Vision.......................................................................................................................... 7
Corporate Governance............................................................................................... 7
Awards & Recognition................................................................................................. 8
2015........................................................................................................................ 8
2014........................................................................................................................ 9
Subsidiaries & Associates........................................................................................... 9
L&T’s Business Structure....................................................................................... 10
Nationwide Network................................................................................................. 11
Global Presence........................................................................................................ 12
Organisation Chart................................................................................................... 13
Sustainability in Action............................................................................................. 15
The Way We Work.................................................................................................. 15
Case Study............................................................................................................ 16
Progress on our Sustainability Roadmap (2012-15)...............................................16
Millennium Development Goals (MDGs)................................................................17
Core Values............................................................................................................... 18
Competitor analysis of different verticals of L&T......................................................18
Human Resource Policies at L&T.............................................................................. 20
Career Development............................................................................................. 20
L&T In News Recently............................................................................................... 21
Job Analysis and Job Design...................................................................................... 23
Person-Job-Organisation Fit...................................................................................... 32
Human Resource Planning at L&T............................................................................. 34

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Human Resource Demand Forecast..........................................................................35
Recruitment Process................................................................................................. 39
Induction Program................................................................................................. 43
Employee Training.................................................................................................... 44
Fresher’s Induction program.......................................................................................... 45
Employee Branding.................................................................................................. 46
Future Strategy......................................................................................................... 47
Investment in Manufacturing and Infrastructure sectors.......................................47
Reduction of Debt.................................................................................................. 47
Getting talent into infra companies.......................................................................47
Selection of Next MD for the company as A.M. is getting retired next year..........47
Company to restructure itself by adding young minds..........................................48
Company to close its SBUs which are not generating profits................................48
Compensation.......................................................................................................... 48
Special Facilities for Site employees are provided.................................................48
Special Medical Insurance Scheme.......................................................................48
Retirement Benefits............................................................................................... 48
Education of employees' children..........................................................................49
Prize Money for Academic Achievement................................................................49
Additional Benefits at Managerial Levels...............................................................49
Salary.................................................................................................................... 49

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L&T has an international presence. construction and manufacturing company. A thrust on international business has seen overseas earnings grow significantly. More than seven decades of a strong. and have established a reputation for strong customer support. A commitment to community welfare and environmental protection are an integral part of the corporate vision. The new structure is built around multiple businesses that serve the needs of different industries:           Hydrocarbon Heavy Engineering L&T Construction Power Electrical & Automation Machinery & Industrial Products Information Technology Financial Services Shipbuilding Railway Projects 1http://www.Company Overview1 Larsen & Toubro Limited (L&T) is a technology. L&T believes that progress must be achieved in harmony with the environment. In response to changing market dynamics. with a global spread of offices.as px?res=P_CORP_AABT_ACOM_AOVR Indian Institute of Management Raipur 4 . The company's businesses are supported by a wide marketing and distribution network. L&T has gone through a phased process of redefining its organization model to facilitate growth through greater levels of empowerment.larsentoubro. customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business. It is one of the largest and most respected companies in India's private sector. with offices and manufacturing facilities in multiple countries. engineering. It continues to grow its global footprint.com/lntcorporate/common/ui_templates/HtmlContainer.

create history in that land. 75 Years of L&T Early Days Henning Holck-Larsen and Soren Kristian Toubro.2003) (27. Their first office in Mumbai (Bombay) was so small that only one of the partners could use the office at a time! In the early years. All they had was a dream. But with the start of the Second World War in 1939.02.1906 . they represented Danish manufacturers of dairy equipment for a modest retainer. the company sets global engineering benchmarks in terms of scale and complexity. In 1938. Henning HolckLarsen and Soren Kristian Toubro.7. This crisis forced the partners to stand on their own feet and innovate.1982) Beginning with the import of machinery from Europe.com/lntcorporate/common/ui_templates/HtmlContainer. Germany's invasion of Denmark in 1940 stopped supplies of Danish products.History2 The evolution of L&T into the country's largest engineering and construction organization is among the most remarkable success stories in Indian industry. These products proved to be a success.as px?res=P_CORP_AABT_ACOM_BHIS Indian Institute of Management Raipur 5 .7.27. L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers. and L&T came to be recognized as a reliable fabricator with 2http://www. Both of them were strongly committed to developing India's engineering capabilities to meet the demands of industry. school-mates in Denmark.1907 . They started manufacturing dairy equipment indigenously. Henning Holck-Larsen Soren Kristian Toubro (4. Today. compelling them to start a small work-shop to undertake jobs and provide service facilities. imports were restricted.3. L&T rapidly took on engineering and construction assignments of increasing sophistication. the two friends decided to forgo the comforts of working in Europe. would not have dreamt. one day.larsentoubro.4. as they were learning about India in history classes that they would. And the courage to dare. and started their own operation in India.

soaps and glass. Powai stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a manufacturing landmark. L&T also started two repair and fabrication shops .9 million.the Company had begun to expand. the Company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils. and on 7th February 1946. Holck-Larsen was Indian Institute of Management Raipur 6 . In 1976. and by 1973 had become one of the Top-25 Indian companies. Prestigious orders executed by the Company during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant. Expanding Horizons By 1964. The sixties saw a significant change at L&T . a major part of the company's Bombay office moved to ICI House in Ballard Estate. Around then. L&T emerged as the largest erection contractor in the country. Audco India Limited (1961). In 1948. L&T signed an agreement with Caterpillar Tractor Company. Hilda Ltd. The sixties were also a decade of rapid growth for the company. The sales turnover in that year was Rs. This prompted them to raise additional equity capital. Chennai (Madras) and New Delhi. Again. By 1945. and witnessed the formation of many new ventures: UTMAL (set up in 1960). fifty-five acres of undeveloped marsh and jungle was acquired in Powai. Larsen & Toubro Private Limited was born. L&T had widened its capabilities to include some of the best technologies in the world. In the decade that followed. large numbers of war-surplus Caterpillar equipment were available at attractive prices. but the finances required were beyond the capacity of the partners.S. USA. to handle these operations. and renamed as L&T House .its Corporate Office. Public Limited Company In December 1950. and led to the formation of a new company. for marketing earthmoving equipment. In 1945. In 1956. ECC was incorporated. A decade later this imposing grey-stone building was purchased by L&T. Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidate and expand. L&T decided to build a portfolio of foreign collaborations. biscuits. the sudden internment of German engineers (because of the War) who were to put up a soda ash plant for the Tatas.2 million. gave L&T a chance to enter the field of installation . With the successful completion of these jobs.. L&T became a Public Company with a paid-up capital of Rs. Toubro retired from active management in 1962.10. At the end of the war. K. Eutectic Welding Alloys (1962) and TENGL (1963). the company grew rapidly. Offices were set up in Kolkata (Calcutta).high standards. Today. The war-time need to repair and refit ships offered L&T an opportunity. The Journey In 1944.an area where their capability became well respected.

Rao. V. D. In the decades that followed. Desai. He retired as Chairman in 1978.awarded the Magsaysay Award for International Understanding in recognition of his contribution to India's industrial development.. S. M. M. Vision The L&T vision reflects the collective goal of the company. Today. Naik. Subramaniam. Unlike other stories.. It was drafted through a large scale interactive process which engaged employees at every level. L&T is one of India's biggest and best known industrial organisations with a reputation for technological excellence. and strong customer orientation.R. the company grew into an engineering major under the guidance of leaders like N. It is also taking steps to grow its international presence.. worldwide.. S. For an institution that has grown to legendary proportions. Indian Institute of Management Raipur 7 . U. there cannot and must not be an 'end'. the L&T saga continues. Kulkarni and A. high quality of products and services.

Corporate Governance L&T’s essential character revolves around values based on transparency. professionalism and accountability. integrity. Indian Institute of Management Raipur 8 .

year upon year. for its outstanding contribution to the development of the Power Sector in India. Mr. The pre-eminence of the selection panel and the very selection process itself. L&T Wins Award for Excellence in Power Project Execution L&T won the Award for Excellence in Power Project Execution from the Central Board of Irrigation and Power (CBIP). He is chosen as a role model for our times.M. Naik conferred Business India’s ‘Businessman of the Year’ recognition Appreciating Group Executive Chairman. Naik's efforts in transforming L&T to one of the most respected Indian multinationals and his contribution to the development of infrastructure in India. Shailendra Roy. A.M. The award was presented by Prof. Whole Time Director & Indian Institute of Management Raipur 9 .Awards & Recognition 2015 Major Awards & Recognition won by L&T in 2015 1. Business India . 2. Each year Business India recognizes excellence in business. Minister of State for Water Resources.conferred on him the prestigious Businessman of the Year Award 2014. a Government of India institute. A. Sanwar Lal Jat. Mr. has ensured that the Business India's Businessman of the Year distinction remains the most coveted by the business community. River Development & Ganga Rejuvenation. to Mr. and commends performance by an outstanding individual in the business community in India.India's premier business magazine .

This project is India’s first full EPC job completed using indigenously manufactured supercritical Boiler– Turbine–Generator equipment. Naik’s role in fostering IndoDanish ties in the fields of business. 3. Minerals & Metals).Sr. Venkataramanan Conferred BP Godrej Lifetime Achievement Award 2 L&T Wins ICICI Foundation-CNBC TV 18 ‘Inclusive India’ Award 3 L&T Ranks in Top 10 Companies for CSR – The Economic Times 4 L&T Power Wins National Energy Conservation Award 5 F&S India Manufacturing Excellence Award for MFF-Hazira 6 L&T Wins Golden Peacock Award for Excellence in Corporate Governance 7 L&T Technology Services Wins Frost & Sullivan Excellence Award 8 L&T Ranked Asia's 2nd Most Sustainable Company in Industrial Sector 9 L&T Wins Most Attractive Employer In Infrastructure Industry from Randstad 10 L&T Bags ‘Best Sustainability Report Award’ – 2014 11 L&T Electrical & Automation's AU-Series Wins Best Product Award at ELECRAMA 2014 Indian Institute of Management Raipur 10 . Naik. has been conferred the Order of the Dannebrog as Knight – First Class by Her Majesty Queen Margrethe of Denmark. EVP (Power. The Order of the Dannebrog is one of the world’s oldest Knight Orders. Mr. commerce and culture. A. A.M. HM Queen of Denmark Confers Order of Dannebrog – First Class on Mr. 2015. The citation lauds L&T’s execution of Nabha Power’s 2x700 MW supercritical thermal power plant at Rajpura. Punjab. This honour represents a progression of the accolade that Mr. The formal investiture ceremony will take place in March 2015. K. 2014 Major Awards & Recognition won by L&T in 2014 1 Mr. at New Delhi during the CBIP Day Celebrations. Naik L&T’s Group Executive Chairman.M. having been instituted in Denmark in 1671. in a record time. Naik received from the Queen of Denmark in 2008. on January 1. The knighthood is Danish Royalty’s acknowledgement of Mr.

Subsidiaries & Associates The L&T Group comprises a large number of Subsidiaries & Associate companies spread across the world. Subsidiary Companies 134 Associate Companies 15 L&T’s Business Structure Indian Institute of Management Raipur 11 .

Nationwide Network Indian Institute of Management Raipur 12 .

China and Australia.Global Presence L&T has a global presence. South East Asia. Indian Institute of Management Raipur 13 . the Middle East. Customers include global majors in over 30 countries. The company has manufacturing facilities in India. A thrust on international business over the years has seen overseas revenues growing steadily.

all the directors on our board are conscious of our responsibility in transforming the organization to make it truly world class. In the 7th decade of the existence of L&T. to ensure its continued long term success and growth. Naik. M. Group Executive Chairman Indian Institute of Management Raipur 14 ." .A.Organisation Chart BOARD OF DIRECTORS "The company that we run has a strong heritage of professionalism that places the highest value on merit and integrity.

NON-EXECUTIVE DIRECTORS        M. Chitale Subodh Bhargava M.Damodaran Vikram Singh Mehta Sushobhan Sarker Adil Zainulbhai Akhilesh Krishna Gupta Indian Institute of Management Raipur 15 .M.

sustainability commitments mean that we remain engaged in the positive cycle of setting goals and demonstrating results across the three 'Ps': Planet. eliminating waste and wastage. Through optimal utilization of energy sources. our approach to stakeholder concerns. adherence to best practices and compliance with emerging international standards. A business portfolio that covers core sectors. Ensuring safety and providing growth opportunities for our employees. adopting greener processes. developing greener products. For us. People: We appreciate the value of our most valuable assets. a rapidly growing order book and strategic investments in sunrise industries will continue to fuel our growth trajectory in the years ahead. addressing healthcare and empowering the youth through training & employment are key to becoming a truly sustainable organization. Indian Institute of Management Raipur 16 . People and Profit. being alert to needs of the local communities. Profit: Economic sustainability is best proven through performance. our transparent governance structure. manage environmental resources and in our contribution towards the sustainable growth of our neighboring communities. This is translated in the way we conduct our businesses. our planet too remains in good health. Planet: L&T is integrating environmental protection across all its operational activities. This has been our philosophy for the last seven decades and will remain so in the future. both within our operations and among our neighborhoods. develop our human assets. we are ensuring that along with a robust business performance.Sustainability in Action The Way We Work We work on a sustainability strategy based on building foundations for a better future.

In quite a few areas such as increase in energy savings. decrease in scope 2 emissions and reduction in water consumption.THE EXPERIENTIAL WAY 3 : AN OFFSHORE SAGA OF UNMATCHED SCALE & SPEED 4 : POWER MANAGEMENT SAVES MILLIONS 5 : STPS IN THE RIGHT DIRECTION 6 : PUTTING WASTE TO WORK 7 : OUT-OF-THE-BUCKET THINKING 8 :ENVIRONMENT CONSERVATION IN ACTION 9 :TRUE PROGRESS IS PROGRESS FOR ALL 10 :SUNLIGHT AT NIGHT 11 :THE POWER OF 'I' – INNOVATION 12 :LOST IN TRANSMISSION? L&T OFFERS A SOLUTION. While we have strengthened our focus on EHS. there is more to be done on Severity Rate front and we are committed to achieving our targets in the coming years. we performed well on most parameters. Progress on our Sustainability Roadmap (2012-15) In the first year of our three-year sustainability roadmap.Case Study CASE CASE CASE CASE CASE CASE CASE CASE CASE CASE CASE CASE STUDY STUDY STUDY STUDY STUDY STUDY STUDY STUDY STUDY STUDY STUDY STUDY 1 : SAFETY INTERVENTION IN ACTION 2 : TEACHING SAFETY . we surpassed the final targets. Indian Institute of Management Raipur 17 . Our ambit of social interventions grew and so did our commitment to employee wellness.

hunger. L&T undertakes a host of initiatives in alignment with the MDGs. They also incorporate basic human rights like access to health. disease. gender inequality. These goals address poverty in its multiple dimensions encompassing income. education and environmental sustainability. Indian Institute of Management Raipur 18 . education and security.Millennium Development Goals (MDGs) The Millennium Development Goals (MDGs) incorporate global time-bound targets.

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In the domestic market. an increase of 38% since 2012. which has created conducive environment for revamping and modification of fertilizer plants. The Planning Commission of India has proposed an investment of around $1 trillion in construction sector in the 12th five-year plan (20122017).6% over the period 2012–17. the Indian construction and engineering industry is forecast to have a value of $162 billion. L&T is one of the largest players in the Indian construction and engineering industry. the company primarily competes with Indian Institute of Management Raipur 20 . The company is well placed to leverage from the growing Indian construction and engineering industry and further enhance its business in the coming years.Core Values       Performance Driven Innovation Integrity Excellence Customer Focus Mutual Respect Competitor analysis of different verticals of L&T L&T Construction: Construction and engineering industry in India is growing rapidly. The engineering and construction segment faces intense competition from construction majors in the Middle East including ABB of Sweden and Bechtel of the US.4 billion. The industry grew by 4. In 2017. Union government conferred infrastructure status to fertilizer industry. This industry is expected to register a Compound Annual Growth Rate of (CAGR) of 6. These companies have substantially greater resources and superior capabilities than L&T.4% in 2012 to reach a value of $117. In 2011.

players like Hindalco. :India's IT industry can be divided into five main components. NASSCOM has also envisaged the Indian IT/ITES industry to achieve a revenue target of USD 225 bn by 2020 for which the industry needs to grow by about 13% on a YoY basis in the next six years. Indian Institute of Management Raipur 21 . ITES/BPO (IT-enabled services/Business Process Outsourcing) and Hardware.2% of total revenues followed by BPO and Engineering services at 19. product development. the Indian IT/ITES industry is expected to maintain a growth of 1315% in FY2015. Software Products at 15. IT services. In terms of total export and domestic revenues.3% and hardware at 11%. Software Products. Multi-year annuity based outsourcing agreements continue to increase at a steady rate. however traditional services have become increasingly commoditized. the domestic market for software services looks forward to a bright future As per NASSCOM. Stiff competition in the marketplace could erode the company's market share and reduce its profitability. This accounts for 54. Application Development and Maintenance (ADM) still continue to be the bread and butter for Indian IT companies. The companies are now providing higher value-added services like consulting. viz.5%. R&D as well as new digital technologies like social media. The new Indian government is emphasizing on better technology enabled delivery mechanisms for a multitude of government projects. Increasing competition. and cloud computing (SMAC). with the new digital India initiative being launched. Gammon India. Sundaram Fasteners. Further. mobility. Engineering and R&D services. analytics. Export revenues. L&T InfoTech. primarily on project based IT Services continue to drive growth with IT Services. and Lanco Infratech among others. pressure on billing rates of traditional services and increasing commoditization of lower-end services are among the key reasons forcing the Indian software industry to make a fast move up in the software value chain.

Account Management and Sales. Rewards and employee benefits At L&T InfoTech. Their online performance management system. Its structured career tracks help its employee grow professionally and personally. skills and ability to independently handle higher responsibilities. rewards are performance-driven. Performance Management L&T InfoTech provide employees with rewarding careers based on their performance. Domain/ERP Practice. Indian Institute of Management Raipur 22 . Quality. L&T InfoTech believe in investing in their employees as they are the architects of the company’s future. Their policies are in sync with industry trends and are based on consistent internal benchmarking. Testing. Training & Development World-class in-house classroom training facilities and on-the-job training builds foundation for a truly flexible career path. Infrastructure Management Services. Their reward programs are aimed at empowering their managers to appreciate excellence in performance. It helps try to identify: a) Roles you could undertake b) Skills you need to develop for doing justice to the role c) L&T offer roles in Delivery. helps the employees set their individual goals and aligns the same with the organizational goals. The aim is to prepare and groom their employees for higher responsibilities.Human Resource Policies at L&T Career Development L&T InfoTech has a well-planned process for career development. A strong performanceoriented culture is one of the hallmarks at L&T InfoTech.

L&T In News Recently Indian Institute of Management Raipur 23 .Enriching Project Management Experience L&T InfoTech provide an enriching experience through their incisive project management that helps them implement complex projects within timelines and budgets. They provide the opportunity to work in different parts of the world in an environment that is truly multinational and multi-cultural.

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Fine’s functional job analysis process is described. Interviewing the incumbent b. Table 1: Fine's functional Job Analysis process Data People Things Comparing Taking instruction Feeding Copying Mentoring Operating 3 Human Resource Management by P. Job analysis data is used to:  Establish and document competencies required for a job.  Identify the job-relatedness of the tasks and competencies needed to successfully perform the job. and  Provide a source of legal defensibility of assessment and selection procedures. in which routine job tasks are classified into three broad categories which the tasks deal with. the competencies required to perform those tasks.opm.N Venkatesh.Job Analysis and Job Design Job Analysis3 is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job.gov/policy-data-oversight/assessment-and-selection/job-analysis/ Indian Institute of Management Raipur 25 . Methods of Job Analysis 1) Observation 2) Desk Audit 3) Interviews a. and the connection between the tasks and competencies. Job analysis4 provides a way to develop an understanding of the nature of the job by examining the tasks performed in a job. Jyoti and D. Interviewing the supervisor 4) Questionnaire 5) Job Diary 6) Recalling critical incidents that happen both frequently and infrequently In the book Human Resource Management by P. Analysis is conducted of the job and not the person.N Venkatesh 4 http://www. Jyoti and D.

Analysing Handling Driving Coordinating Supervising Controlling Synthesizing Negotiating Setting up Innovating Persuading Manipulating From Table 1. we will first attempt to showcase job analysis b looking at the job descriptions and job advertisements available of L&T jobs in public domain. supervising subordinates and setting up seminars. a particular job will call for comparing data. Figure 1: L&T job advertisement for SPV Nabha Power Ltd. Raipur Indian Institute of Management Raipur 26 . Critical Analysis: Job Analysis in Larsen & Toubro perspective While primary data is most reliable for Job Analysis.

we could not know what the job requires. he must be a graduate in Civil or Mechanical engineering. scheduling and monitoring activities. the supervisor must know what his expected responsibilities are. For proper evaluation of an employee. This knowledge is essential for selection of candidate for any job. According to Boston Consulting Group. and will also help in justifying the compensation. For instance. the more he has to be compensated. he must be adept in Primavera or MS Project and should also be able to undertake planning. Job analysis list out the criteria on which the employee must be evaluated. This advertisement gives a brief description of the job duties and responsibilities of the particular job. Without having a proper job analysis done. The job involves planning. Benefits of Job Analysis (with advertisement in Table 2 as an example) 1.Figure 2: Magnified view of excerpt from Table 2 As one could see. 2. 4. the job under Project Planning & Control is ideal for Civil or Mechanical graduates. A detailed job analysis let us know of the areas of expertise or knowledge the employee/candidate requires and help us in designing his/her training correspondingly. 3. including project cost control using planning software like Primavera/MS Project. It also indicates the expected expertise required of a person for the job. Thus job analysis helps us in determining the compensation for different jobs. The more the expertise required from a person for a job. Job Analysis is undertaken to collect information regarding: a) Job work activities b) Human behavior Indian Institute of Management Raipur 27 . scheduling and monitoring of project related activities.

Weight: 45 kgs). In the coming pages. These requirements are identified as a result of proper job analysis.c) Performance standards d) Human requirements e) Job context Figure 3: L&T Job Advertisement for Diploma Engineer Trainees In Table 4. one could find that the Job Analyst has identified that the job requires essential physical standards (Height: 155 cms. It also specifies the eyesight requirement and other technical competency requirement as well as the age requirement. we have shown various forms used for collection of data for Job Analysis. Indian Institute of Management Raipur 28 .

Figure 4: Job Analysis Data Collection Form Sample 1 Indian Institute of Management Raipur 29 .

Figure 5: Job Analysis Data Collection Form Sample 2 Indian Institute of Management Raipur 30 .

Figure 6: Detailed job description for Senior Architect at L&T Indian Institute of Management Raipur 31 .

Wrist movement e. Perceptual/Motor Approach includes a. Endurance c. Task clarity d. Strength b. Displays c. Recognition i. Security 3. Autonomy b. Climate f.Job Design5 involves designing or engineering jobs to reduce stress. Workplace layout In the modern context Motivational Approach seems to have more significance. Memory requirements d. Shift work h. enhance motivation and satisfaction and improve performance. Specialization of tools and procedures c. Promotion g. Seating d. Mechanistic Approach includes a. Intrinsic or extrinsic job feedback c. 5 Human Resource Management by P. Work breaks 4. Automation 2. Jyoti and D. Four Approaches to Job Design 1.N Venkatesh Indian Institute of Management Raipur 32 . Motivational approach includes a. Biological Approach includes a. Achievement h. Spare time f. Job designing could be traced back to Taylor’s task designing meant ot maximize human efficiency in jobs. Job specialization b. Task identity e. Job/Task simplification d. Noise g. Stress f. Task variety f. Skills and Abilities). In the 1950’s IBM introduced job rotation and job enlargement to motivate its employees and enhance their KSA (Knowledge. Boredom e. Repetition e. Lighting b.

buying.Motivational Approach to Job Design involves a) Job rotation – An alternative to boredom in workplace. we have shown the L&T advertisement shipbuilding and ship repair professionals. Employee is rotated between jobs of similar nature to broaden his/her KSA and improve his/her competencies. Indian Institute of Management Raipur 33 . more opportunity and more responsibility. but have job enlargement. i. Evidences for job enrichment and job enlargement. job enrichment.e. horizontal expansion of duties. It also uses the L&T brand as a motivational factor. which comes under perceptual or motor approach. with reference to Figure 3. reduce boredom and increase interest in work and efficiency. estimating. b) Job enlargement – In this. It increase KSA. Weight: 45 kgs) and eyesight requirement were mentioned. The ‘Engineer’ role does not have job enrichment aspect. scaffolding. hull outfitting. The job description given in detail indicates the use of mechanistic approach. Critical Analysis: Job Design in Larsen & Toubro perspective In Figure 7. This is vertical expansion of duties. It is a horizontal expansion. where essential physical standards (Height: 155 cms. But. ship repairing etc. It gives employees more challenging atmosphere. which are aspects of motivational approach. c) Job enrichment – This is a vertical expansion of job by adding more responsibilities and freedom to it. Biological approach is not evident in this particular job advertisement. It involves a horizontal array of duties including planning. are present in Figure 7 advertisement. involving a variety of tasks. more tasks are added to the current job. The advertisement has used the picture of L&T’s shipbuilding facility and boasts about the new world-class facility. contract management. i. training.Manager’ role involves tasks from development. designing. it indicates the use of biological approach in job design. The ‘Head’ and ‘Manager/Sr. This conveys information about work place layout and nature of work to prospective candidates.e. L&T rarely uses package or remuneration as a motivational factor in its advertisements. designing and planning to project management and quality assurance and control.

Indian Institute of Management Raipur 34 . even though it may not use all the approaches all the time.Thus L&T advertisements use all approaches to convey the design of the job to prospective candidates.

Figure 7: L&T Shipbuilding career advertisement Indian Institute of Management Raipur 35 .

or the match between an individual and the requirements of a specific job.Person-Job-Organisation Fit In the recruitment and selection domain. and Person–organization fit (PO fit). (2) there are different types of jobs (3) people in job environments congruent with their personality types should be more satisfied and less likely to voluntarily resign than should people in incongruent jobs. The key points of this model are that (1) there do appear to be intrinsic differences in personality among individuals. A realistic person in a realistic job is in a more congruent situation than is a realistic person in an investigative job. conventional people in conventional jobs. The person-organization fit essentially argues that people leave jobs that are not compatible with their personalities. Indian Institute of Management Raipur 36 . Social individuals should be in social jobs. To the degree that an organization faces a dynamic and changing environment and requires employees who are able to readily change tasks and move fluidly between teams. A realistic person in a social job is in the most incongruent situation possible. or the match between an individual and broader organizational attributes. skills. The Person-Job Fit PJ fit is conceptualized as the match between individual knowledge. and abilities (KSA) and demands of the job or the needs/desires of an individual and what is provided by the job The theory is based on the notion of fit between an individual's personality characteristics and his or her occupational environment. The Person-Organization Fit The attention in recent years has expanded to include matching people to organizations as well as jobs. two common forms of fit have been identified: Person–job fit (PJ fit). and so forth. it's probably more important that employees' personalities fit with the overall organization's culture than with the characteristics of any specific job. The theory argues that satisfaction is highest and turnover lowest when personality and occupation are in agreement.

abilities A sample item is.Person Job fit perceptions were assessed by three items . attraction to the organization. skills. perceptions of PJ and PO fit and organizational attraction. Data were collected at four time points: Time 1 – after application was received and prior to any selection procedures. skills. The response format for the fit scales was a 7-point Likert scale with 1 representing not at all and representing completely. Time 3 – after all selection procedures had been completed. EDUCATIONAL QUALIFICATIONS: Full time engineering graduate in Mechanical discipline with relevant experience at sites of thermal power plants 2. LOCATION : Nigrie Site 3.Person Job Fit Person Organisati on Fit Attraction to the organisati on Intentions to accept job offer For the case of L&T we take a close look at a particular opening – Manager Planning. The study was done on about ten applicants . weekly and monthly reports. ‘To what extent do your knowledge. job acceptance Indian Institute of Management Raipur 37 . 4. The first questionnaire (Time 1) asked for applicants’ demographic information and assessed number of expected and received alternative job offers. and abilities “match” or fit the requirements of the job?’. The second questionnaire (Time 2) assessed number of expected and received alternative job offers.Knowledge. and Time 4 – after job acceptance decision was made. Time 2 – after first selection interview. NO OF YEARS OF EXPERIENCE : Overall 10-15 years experience JOB PROFILE / ROLE DESCRIPTION: Lead planning engineers at the site Site planning work  Material Planning  Highlight critical items  Generation of exception reports  Generation of daily. 1.

how to measure progress and what constitute success with respect to the objectives determined for carrying out the forecast study.18 PJ fit(T2) 0.2 0.33 Alternative job offers (T1) Alternative job offers (T2) 0.45. skills and abilities with the current job. It studies the main area where the Indian Institute of Management Raipur 38 .37 PJ fit (T1) 0.45 From the table we conclude that the variation in person job fit on both the stages is almost the same that is 0. Attraction (Time 1) Intentions to accept (Time 2) 0. Forecasting Methodology A Forecasting Methodology defines the purpose of the forecast. understand and analyse various aspects related to recruitment and retention procedure at Larsen & Toubro. The appropriate forecast design formulated is detailed below.41 and 0. Scope of Study Report will focus on study of Larsen & Toubro and it will be primarily based on the manpower planning procedure at Larsen & Toubro. So the applicants who applied had thoroughly matched their knowledge.41 0. Exploratory Forecast: This kind of forecast has the primary objective of development of insights into the requirements. Human Resource Planning at L&T Primary Objective The primary objective is to study.intentions and perceptions of PJ and PO fit. how it proceeds. This organization has low attrition rate because the employees find themselves a perfect fit with the job and the organization as a whole. The final questionnaire (Time 3) assessed job acceptance intentions.41 0.

recruited mainly through referrals) 150 Indian Institute of Management Raipur 39 . Internal sources: which originates from the specific field or area where research is carried out e. Human Resource Demand Forecast Technique used for Forecasting: Statistical & Mathematical Model Year Manpower Level/Data (in nos.requirement lies and also tries to evaluate some appropriate recruitment of action. magazines. journals. Nature of data: Primary data: Data is collected through direct interviews and by raising questionnaires.g. The effective forecast technique has a significant contribution for effective objective requirement. Forecast Design: Descriptive forecast design has been used in this report. The secondary data has been collected from various books. publish broachers. official reports etc. information brochures and internet web sites.employee of L&T (also a member in the group) and through one of the HR executive (kept anonymous for confidentiality) on telephone. The technique deployed to analyse and interpret the data for the purpose of hitting the target objective plays a crucial role. Data Structures: “Systemized Method to gain knowledge”.) 2008(Recession year. The forecast methodology for the present requirement has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. Secondary data: Secondary data that is already available and published. It could be internal and external sources of data. The direct interview is done with the ex.

Indian Institute of Management Raipur 40 . We found out that the company recruits the employees every month as their requirements change every month.2009(Recession recovery year) 350 2010 800 2011 900 2012 1000 2013 1100 Based on the data as shown above and looking at the current political and economic situation where the economy looks stable we interviewed the HR and ExEmployee and found out that the around 7000 employees could be recruited this Fiscal year. Different job advertisements and job search sites are researched to confirm the same. It follows the ‘Top-Down Strategy’ and weighted average method (Here the software requirements and sales are given high priorities and HRs and IT are given low priorities). and employment newspaper and on the all e-jobs sites. Below is the snapshot of the requirement for the month of March in company website. The job is mainly advertised in company website. Company forecast for every year a tentative list of employees which will get recruited and then breakdowns for every month. national newspaper. The decision for recruitment mainly comes through the Top management.

Indian Institute of Management Raipur 41 .

Experienced employees are recruited mainly in metro cities at the company offices. Indian Institute of Management Raipur 42 . The students are recruited through off campus at the state level. of Software Engineer Required (Work Experience more than 3 years) 500 Average Salary Per year 8 Lakhs Total Salary Payable 63. of HR’s required for the process 7 HRs Company’s Budget and Requirement From the data collected through interview. who are just the college pass out are offered a salary of around 3.The demand forecasted is for long term (1 year) and it has been forecasted on the short term requirement of the company’s advertisement posted on the website. The Fresher.4 Lakhs No. of Software Engineer Required (Fresher) 700 Average Salary Per Year 3.8 Crore No. of employees leaves the company every year. it was found that the company requires around 7000 employees every year as the same no.4 lakhs per year. The budget for the recruitment and hiring is approximately 10 crore which includes HRs staying and logistics. No. Labor Turnover Index – this index indicates the number of average employees employed in a given time period is decided by adding the employees at the beginning & end & then dividing the same by two.

External sources The Internal Recruitment Company believes in offering opportunities for development and career progression to its employees.No. internal recruitment is a Indian Institute of Management Raipur 43 .8% Last year 1100 people have been recruited in between during the year. leaving 16000+1100-14800 = 2300 Average nonemployees employed (16000+17000+1480 0)/3 = 15933 Labor turnover (2300/15933)x100 = 14% Recruitment Process Sources of Recruitment L&T recruit employees from two sources: 1. then the labor turnover would be: No. Internal sources 2. of employees employed)x100 (1200/15400)x100 = 9. of employees employed (16000+14800)/2 = 15400 Labor turnover = (no. hence each time a necessity emerges. of employees leaving/Average no. of employees leaving 16000 – 1200 = 14800 Average no.

HR sends a notification to the eligible candidates via email. he/she is treated as a fresh hire (entry level recruitment). Applicants who are not found eligible are likewise told by means of email. Skills. The advertisement does accompany subtle elements: Job Profile Educational qualifications. If approval is given. If candidate possess less than one year of work experience.favored mode. Eligible candidates undergo a panel interview. Depending upon the requirements projected in the manpower plan. The selection criteria for Institutes are described below: Campus rating through publications: HR refers to the Campus ratings published in the Business Magazines. Experience Last date of receiving Applications Contact person in HR All applications then screened for the qualification against foreordained criteria for the vacancy. available in the country and arrive at average campus ratings. Recruitment of Trainees Management trainees are recruited from management institutes across the country. the company recruits Management Trainees from Management institutes in the country. HR prepares a list of eligible applicants and seeks approval from the respective Reporting Manager and Departmental Head. Indian Institute of Management Raipur 44 . External Recruitment Entry-level recruitment is used for fresh graduates / postgraduates who are taken as Executive Trainees and Management Trainees or for individuals joining at entry-level positions in the Company. HR puts an advertisement on the intranet.

HR then screen the application blanks that are received and short list them a second time according to the eligibility criteria. Observations will be recorded in the Group Discussion Observation Form and Indian Institute of Management Raipur 45 . Additionally.Campus Relationship: The Company develops close relationships with targeted campus by hiring large numbers. Selection Process All eligible candidates undergo the following 2 – step selection process: Group Discussion – This will be the first step of the selection process. Screening of Applications The Placement Coordinator/Administrative offices short list candidates on the basis of predetermined eligibility criteria and send the list of short listed students to the company at least one week before the date of campus interviews. This contains brochures of the company literature containing information about the company. Any deviations highlighted and justified. Recruitment Process for Management Trainee The recruitment process for the Management trainees will be as follows: HR initiates the campus recruitment process by sending the company’s literature to the campus. Pre Placement Talks: HR coordinates with the Placement Cell of short listed Institutes and schedule Pre Placement talks. Two members of the Campus Recruitment Team will observe each group discussion. conducting events. taking summer trainees. The HR head and a senior line Manager form the Pre Placement Team. freshly qualified persons from different areas shall be selected as per the requirement. one month before the proposed date of recruitment. sending senior managers for lectures etc. the job profile and the remuneration package. A final list of candidates selected for interviews has to be sent back to the Institute no later than one week before the selection process. An attempt made to include a cross – section of Institutes across the country to ensure diversity in the campus recruitment process.

Where required blank offer letters will be carried to the Campus and given at the time of placement itself. Candidates who are selected after the Group discussion will be called for a personal interview. Lateral Recruitment The different modes of recruitment available are Database Hiring. Candidates have to indicate his/her acceptance by signing and returning the copy of the letter to HR not more than15 days after receipt of the letter. Offer Letters: Offer Letters than sent to the selected candidates within 7 days of the selection process at the Campus.Age. educational qualifications Indian Institute of Management Raipur 46 . The advertisement adheres to the prescribed standards and contains the following details:  Brief Profile of The Company  Brief on Job Responsibilities  Employee profile. Media Advertisement In case the number of vacancies is large. advertisements may be released based on recommendation of the HR head and an approval from the Directors. Interview Observation Forms will be used to evaluate the candidate’s performance during the interview. business and general awareness. experience. Topics will be a mix of economics. HR forwards a copy of the candidates list to the requesting department along with the resumes of the five highest ranked candidates. the internal applicant database is referred to. Internet Hiring. Database Hiring: When any recruitment requirement arises. experience and training. Employee Referrals and Advertisements. Eligible applicants get selected by their qualifications. Candidates short – listed from this list are called for an interview.compared for a final rating at the end of the Group Discussion.

com and jobsahead. Selection Process Initial Screening: HR conducts an initial screening based on the details provided in the CV. date and venue for the final interview. HR head will be the final contact. Preliminary Interview: A preliminary interview with HR has to be conducted prior to the panel interview.com can be used for any level of recruitment. Locations  Email ID/Postal Address for receipt of Resumes Internet Recruitment Firms Internet recruitment firms such as naukri. It is important for the employer to spend time planning for the new person's first days and weeks on the job. HR then establish a candidate’s list using set priorities when there is more than one qualified applicant interested in the same position. It helps them understand the new environment and opens them to the work culture of the new organization. Employee Orientation It is imperative to provide a proper orientation to the employees when they join a new organization. and also the pre determined criteria. Final Interview: HR intimates the candidate about interview time. Purpose of orientation:  Introduce employee to the work culture Indian Institute of Management Raipur 47 . The preliminary interview may be conducted via telephone if it is a case of an outstation candidate. This will greatly increase the employee’s chance for a successful start.

The programme is a good mix of technical & behavioural programmes along with a lot of fun-filled activities such as In-basket exercises.” It is a one day orientation program at L&T . The programme consists of an orientation on L&T. Contests and Cultural Programmes. product simulations. The trainees work on technical projects. individual assignments. vision. and undergo various technical as well non-technical exercises on-line. etc. Games. organization structure. policies .The major details of the program are:  Introduction to the  History and growth of the company Indian Institute of Management Raipur 48 . Make the employee understand how he/she fits in the organization Introduce employee to his roles and responsibilities Orientation Process:  Preparation of checklist of documents to be given to/ taken from the employee  Arrangement for meeting with higher officials or fellow associates  Preparation of presentations to be done Orientation at Larsen & Toubro: Fig : A screenshot from L&T website Induction Program As part of the on-boarding process. its businesses and projects undertaken. It also helps them get acclimatized to the work ethos and start delivering from day one. which gives them an overview of the breadth of work.   Provide knowledge about mission. a 'finishing school' as it were. all fresh entrants go through an Induction Programme.

capabilities and skills of the staff are monitored & developed in line with the Performance Oriented Development Plan (PODP) and needs of the business.  Customized program as per the needs of different Technology Services verticals. Learning Management function at L&T Technology Services aims to provide:  Behavioral  Functional  Leadership Learning Fresher’s Induction program  Trainees (DETs. functional and technical skills is the fundamental premise of the L&T Technology Services Learning Management function as one of the important pillars of Human Resource Function. Indian Institute of Management Raipur 49 . PGETs) are transformed into executives by a residential program of 2 months.  Practical training in design software applications included. ETs.   Organizational structure and who’s who of the management  Policies and benefits  Important contacts Access to  Login credentials  Employee i-card Paper work Employee Training The orientation is usually followed by an employee training program for a duration that depends on the job profile. The objective of learning management is to ensure that the potential. Learning Management @ L&T Technology Services Constant learning and skills upgradation of employees’ behavioral.

Intensive behavioral modules, sessions on company code of conduct, processes &
structures.

Constant Evaluation - Technical tests in domain related technical topics.

The orientation program for lateral new joiners provides them with a holistic view of
the company, its businesses, structure, projects & processes and helps them to settle in
quickly.
Our employees have the opportunity to nominate themselves for any program needed to
upscale their skills for current/planned projects, assignments.

Behavioral, functional & Leadership Training
Learning is a continual process at L&T Technology Services. From communication &
presentation skills to leadership skills; employees at L&T Technology Services are
trained and retrained continually. On the basis of competency framework; employees are
trained in specific skills. Project managers & their teams are trained through certified
courses in the field of project management and other managerial skills.
With the company having diversified business across the globe; Learning Management
team constantly provides training on Voice & Accent neutralization, Language
enhancement, global business etiquettes and cross-cultural sensitization. Employees are
encouraged to take up courses in foreign languages and other behavioral skills.

E-Learning - Various e-learning programs on defined competencies, including Online
certification courses on Project Management, Supply Chain Management, different elearning resources on various behavioral areas are facilitated.

Nominations are invited for a variety of Management Development programs that
employees have the opportunity to attend and hone their management skills. Employees
taking up new roles are groomed by such programs to ensure the right fit for the next
level position.

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Employee Branding
Employees are expected to amalgamate their identity with the brand’s identity. Employee
branding refers to the alignment of employee’s behavior and often the employee’s point of view
with the image that the organization wants to project to its customers and external stakeholders.
Every employee becomes a brand ambassador of the organization.
The goal is to induce employees to create a behavioral and psychological connection between
their own identity and the brand’s identity. This connection should lead employees to prioritize
the brand’s interests automatically and uncritically, because branded employees treat the brand’s
priorities as their own.
Methods of achieving employee branding:


Selective hiring – Hire candidates whose skills and knowledge are closely aligned
with job requirement
Provide adequate amount of training and motivation
Keeping the employee happy so that he feels connected to the organization

Another concept is employer branding.

Employer Branding
In today’s competitive world it is very difficult for organizations to retain talented employees.
Employers have to build an image in front of the prospective employees so that they are attracted
to join that particular organization.
Awards like the EBA( Employer Branding Awrads)given by the Employer Branding Institute
India are given to organizations for various excelling in various aspects. Some of the factors are :




Continuous innovation in HR Strategy
For managing health of employees at work
For innovation in recruitment
For innovative retention strategy
For excellence in employee training, etc.

Employer branding is the process of building a brand image for an employer. The employer
branding process involves:

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Research & Advisory Services - The Company needs to understand what it offers of
value, as defined in the EVP, to current and prospective employees. Top Management
also needs to believe and actively support the EVP. If the company is unaware or unsure
of the value it offers Top Talent, the Employer Brand cannot be activated or effectively
promoted.

Activation & Talent Sourcing - The activation phase requires a holistic communication,
marketing and talent sourcing plan to ensure the company is getting the right kind of
talent aboard. While the talent sourcing’s role is to ensure company-candidate
compatibility, marketing and communications aim for top talent in establishing the
company as the employer of choice.

KPI Development & Tracking - For effective employer brand promotion, constant testing
and measuring – when using different campaign techniques, messages, channels, etc. – is
required. It is imperative for a company to set Key Performance Indicators (KPIs) and
keep track of performance levels in order to make continuous improvements.

Future Strategy
Investment in Manufacturing and Infrastructure sectors
Company is mainly looking for investment in manufacturing and Infrastructure
sectors as there is a big scope for it in the market. As there is a reduction in the
corporate tax rate from 30 percent to 25 percent over the next four years, company
is looking forward to leverage this opportunity.

Reduction of Debt
Currently company’s total debt is Rs 62,000 crore. Of this, Rs 28,000 crore is in L&T
Finance, which is on its own. L&T’s debt is Rs 8,000 crore; Rs 25,000 crore is in IDPL
and other companies. The other priority is to make the company asset-light and
bring down debt by Rs 10,000 crore in three years’ time. At the consolidated level,
debt should be less than Rs 30,000 crore and net worth is Rs 40,000 crore.

Getting talent into infra companies
Getting talent into Infra sector is very tough job as people are more inclined towards
Oil and IT industry. Company is facing an issue at all levels. Since L&T is much
diversified, it is a recruitment haven for others but company cannot get people from
other sectors to work in the infra sector.

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part furnishing of accommodation provided. 'Small and totally non-core' like glass bottles. Company is looking for younger CEOs who can put their best efforts to handle 70 per cent of L&T but the balance 30 per cent needs priority. company is searching for a leader for the hydrocarbon business for quite some time.M. Today.” Compensation The governing theme in the organization is the wellbeing of our employees.Selection of Next MD for the company as A. The second strategy is to study once we had implemented this. 21 companies are merged into one. attrition at the middle level is high. and free transport facilities for work. what is the L&T score. is getting retired next year It is a challenging situation. live in India. Company to restructure itself by adding young minds The company needs to be simplified and some businesses need to be sold. Though A. as they have reservations about working for an Indian company. Naik from the recent interview: “The first thing I did was to create a new vision.M. It is aimed at not only attracting but also retaining talent. Company has found an Italian who will take over one part of the hydrocarbon business.M. At L&T. L&T has to act like a shareholder now and not act like management. Like other diversified conglomerates. Indian Institute of Management Raipur 53 . And. a new strategy and therefore bring in one or two of the top three strategy firms to resolve issues that were inherited. a CEO gets $4-5 million in a year in the hydrocarbon sector. And 'non core but grow to sell'. Please close if you can't sell…Second. Study the various businesses and put them in buckets. 'too small and cannot grow' and heavily dependent on foreign technology. Company to close its SBUs which are not generating profits The excerpts from A. Also. company has decided to move their business headquarters to Dubai. the others will have their own CEOs. The salary and benefits offered are on par with the best available in Construction Industry. Naik started building the pipeline 10 years ago. That was keeping me occupied. A few important perquisites & welfare schemes are highlighted below: Special Facilities for Site employees are provided The special facilities include subsidized accommodation. company won’t get best talent globally. there will be many CEOs in the times to come. So. where quality of life is an issue. as multinationals are hiring due to a boom in the energy business. For example. That's what I did with cement. leather shoes.

housing & children’s higher education and purchase of Personal Computer. Education of employees' children L&T Institute of Technology. students are awarded diplomas by the Directorate of Technical Education. Indian Institute of Management Raipur 54 . On successful course completion. The Institute conducts four-year industry-integrated diploma courses in Mechanical Engineering and Electronics Engineering. aged up to 85 years under this scheme. the Welfare Department of L&T presents cash awards to students who have scored high percentage marks. Prize Money for Academic Achievement To acknowledge and motivate meritorious wards of employees. Additional Benefits at Managerial Levels Several attractive benefits are available including provision of company car. membership of Superannuation scheme and reimbursement of expenses on club membership. Retirement Benefits All staff members are covered under Provident Fund and Gratuity Scheme. loans for furniture.Special Medical Insurance Scheme This scheme is in addition to other medical benefits available to employees. Mumbai is an exclusive facility for L&T employees' children. Maharashtra to which LTIT is affiliated. Employees have the option of covering their parents.

It also provides to and fro cab services to all its employees. Further. lunch and snacks to all its work location. Indian Institute of Management Raipur 55 . company provides free breakfast. we did the comparative analysis with its competitors. There are other basic facilities like free guest house on deputation to other locations and vacation houses in almost each and every holiday destination in India with family. We have analysed salary structure for Civil and mechanical engineers on junior and senior level.Salary L&T provides basic facilities to all its employees. However it pays less as compared to other competitors in the market. To compensate with this.

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Performance Management at Larsen & Toubro Performance Management is a critical function in any organization as it involves the sophisticated exercise of performance appraisal. Indian Institute of Management Raipur 59 . decide on the objectives ensuring that they are in line with the objectives derived at PPW. hereafter referred to as PPW. Technical/ Functional or even IT. performance appraisal is only a specific part of performance management. It is designed for development of competencies of employees keeping the current role of the appraisee in mind. The appraise and Immediate Supervisor. both incumbent employees as well as previous employees. will conduct the PPW following the finalization of its annual budget. During the PPW. All the information provided here are specific to Larsen & Toubro and has been collected via multiple discussions with L&T employees. PODP focuses on developing depth/expertise in a few competencies. However. we discuss the performance management cycle practiced at Larsen & Toubro. In this section. the system is designed to establish a clear linkage between given ratings and rewards. These competencies can be from Leadership/ Behavioral. The objectives have to be specific and measurable. Each Strategic Business Group hereafter referred to as SBG. It also identifies the developmental needs of the organization’s employees and lays out a framework to meet them. business objectives of the group for that year have to be cascaded to the lowest possible level. The sole propose is to enable the employee to enhance his performance level. Performance Management Cycle Step I: Performance Planning (Objective Setting) The performance management cycle starts with a Performance Planning Workshop. Larsen & Toubro has well defined its performance management cycle in its 19 page document titled “Framework for Linking Appraisals with Incentives and Rewards”. Baptized as FAIR. Performance Oriented Development Plan (PODP) PODP is a development tool for identifying the needs of the employee. hereafter referred to as IS. The appraise should not select more than 2 competencies for a single year.

Step 3: Announcement of Macro View Groups (MVGs) Macro View Groups are announced in April. quality of output generated. hereafter referred to as DH. which gets forwarded to the Next Supervisor. The IS enters comments. who presides the appraisal process on behalf of the management. It is taken care that the employees rated by a particular MVG fall under the line of sight of the members of that MVG. the speed with which assignments are handled etc. the appraise records a self-review against the objectives set and submits to his/her IS for approval. based on achievement vis-à-vis set objectives. NS adds his/her comments and forwards to Department Head. The IS conducts a performance feedback and development discussion with the appraisee. It is specifically instructed in the FAIR manual that the focus during this discussion should be on the development of the employee. vis-à-vis his/her peers in the same Indian Institute of Management Raipur 60 . hereafter referred to as NS. within 2 to 3 reporting levels. It is instructed that NS’ comments should also involve remarks on the comments of IS. usually in the month of October. The IS appraises the performance on a scale of 8. the volume of work undertaken. the employee has to do a self-review of his/her performance and see where he stands vis-à-vis the objectives he/she had previously set.Step 2: Mid-Year Review At the end of six months. The DH arrives at a normalized rating on a scale of 1-8 after considering the relative performance and contribution of the appraise. Step 4: Assessment Process At the end of the year. If the mid-year review indicates that the employee is falling short of the projected target in six months. the IS should guide the employee to make up for the shortfall in the next six months. This is to make sure that MVG members are more keenly aware of the performance of the employees they are rating.

The Performance Management Cycle at Larsen & Toubro thus involves five steps. then DH and IS discusses the rationale for the difference. The feedback session is again meant for discussions on how to improve the ratings for the next year and how to achieve the same. The MVG moderates it to arrive at relativity across the SBG so that it will fall in line with the recommended distribution percentages. the objectives set for the appraisee may be reset and suitable changes may be made to the eployee’s Performance Oriented Development Plan. in which an employee may be based in a certain Department. The ratings are then collated and send to the respective MVG. while giving feedback based on this scale.band. For the purpose of feedback. all appraises in a band who are rated on a 1-8 scale will be clubbed into 4 categories. Indian Institute of Management Raipur 61 . The FAIR System also mentions some non-standard variations. In such case. will explain the process that was followed while evaluating to the appraisee. Based on this discussion. but is a member of a Project also. Rating 8 - Outstanding Performer Rating 7 & 6 - Top Performer Rating 5 & 4 - Vital Contributor Rating 3 Needs Improvement - Rating 2 & 1 - Below Average The IS. where an appraise reports functionally to one person and administratively to another. Performance Review in case of Multi-Reporting The engineering and construction units of L&T often follow matrix organizational structure. which we have broadly outlined. It is also mentioned that if there is a difference of 2 points or more on the 1-8 scale between the ratings given by DH and that given by IS. the main responsibility of the performance review is upon the supervisor who is involved in objective setting. Step 5: Feedback to the employees We have already discussed that Larsen & Toubro uses a scale of 1-8 for appraisal. across the department.

transferees will go through the performance appraisal in the departments where they have worked for more than 90 days. Similarly. Figure 1 shows the standard schedule for FAIR and Performance Oriented Development Planning for the financial years 2014 and 2015. it is clearly mentioned that the system recommends that both superiors (functional and administrative) are involved in the entire performance appraisal exercise. it is mentioned. Indian Institute of Management Raipur 62 . on cases of transfer within the organization.However. The DH with whom he/she is working at the time of appraisal will decide the final ratings after taking into account the inputs from the employee’s IS and NS in the previous departments.

He had been rated as a Vital Contributor for the year 2012-13.Figure 1: Standard schedule of FAIR planned for FY 2014 and 2015. Figure 2. Indian Institute of Management Raipur 63 . shows the sample Promotion Letter received by an L&T employee working in the Engineering division. in the next page. The SBU’s name is not mentioned in the title.

Figure 2: Promotion Letter of an L&T employee working in Engineering Divsion Indian Institute of Management Raipur 64 .

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