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We are very thankful to our HR manager Ms.Padmavathy, ACC Cement Works,

Madukkarai, who spared her valuable time for us and cooperated in every possible way and
gave us a lot of knowledge about her profession.

We also would like to express our heart-felt gratitude to Mr.R JAGAJEEVAN,

Faculty, PSGIM who gave us wonderful opportunity to do this project and finish it


COMPANY PROFILE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

HR MANAGER PROFILE . . . . . . . . . . . . . . . . . . . . . . . . 5

HUMAN RESOURCE DEPARTMENT . . . . . . . . . . . . . . 6

THE DISCUSSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

ACC Limited is India’s foremost manufacturer of cement with a countrywide
network of factories and marketing offices. Established in 1936, ACC has been a pioneer
in cement and concrete technology. ACC’s brand name is synonymous with cement and
enjoys a high level of equity in the Indian market. Among the first companies in India to
include commitment to environment protection as a corporate objective, ACC has won
several prizes and accolades for environment friendly measures taken at its plants and
mines. The company has also been felicitated for its acts of good corporate citizenship.

ACC's operations are spread throughout the country with 14 modern cement
factories, more than 30 Ready mix concrete plants, 20 sales offices, and several zonal
offices. It has a workforce of about 10,000 persons and a countrywide distribution network
of over 9,000 dealers. ACC's research and development facility has a unique track record
of innovative research, product development and specialized consultancy services.

ACC has a rich experience in mining, being the largest user of limestone, and it is
also one of the principal users of coal. As the largest cement producer in India, it is one of
the biggest customers of the Indian Railways, and the foremost user of the road transport
network services for inward and outward movement of materials and products.

ACC has also extended its services overseas to the Middle East, Africa, and South
America, where it has provided technical and managerial consultancy to a variety of
consumers. ACC is among the first companies in India to include commitment to
environmental protection as one of its corporate objectives, long before pollution control
laws came into existence. Every factory has state-of-the art pollution control equipment
and devices.

Vision of the company

To be one of the most respected companies in India; recognized for challenging

conventions and on delivering on our promises.


Ms.Padmavathy, HR Manager, ACC Cement Works, Madukkarai is an MBA(HR)

graduate with over 7 years of experience in which half of the same had been at ACC.
She is to assist the chief HR Manager responsible for the entire gamut of HR,
Industrial relations and administration for the smooth functioning of the unit. She also has
the responsibility to assist the Unit Head, GM – HR and other departmental heads in
recruitment, PMS, Training & Development etc. in accordance with company standards.
She has an excellent knowledge of industrial relations and labor laws that reinforced
her profession. She is also responsible for carrying out any task assigned by the
management from time to time.
She has a very good reputation among the employees for being unbiased. She is well
known among her co-workers for the formulation and implementation of staff welfare
schemes that had resulted in a great success. Her dynamic personality and skills proves her
to be an ideal HR manager.

ACC has a large workforce of about 9,000 people, comprising experts in various
disciplines assisted by a dedicated workforce of skilled persons. ACC employees, referred
to as the ACC Parivar, come from all parts of the country and belonging to a variety of
ethnic, cultural and religious backgrounds. ACC employees display a strong sense of
loyalty to the Company and their special stellar qualities as ‘value-adding’ human capital
are well known in the industry.
ACC has clearly stated guidelines concerning recruitment, termination, career
advancement, performance appraisal, professional and employee ethics and code of
conduct. The Company’s personnel policies and processes enshrine equal opportunities to
all and non-discrimination with regard to gender, caste, creed, ideology or other opinion,
whether social, political or religious.

HR Mission
• ACC’s responsibilities towards employee go beyond providing a competitive wage,
salary, benefit and payment and include many other elements such as attempting to
maintain good working condition, maximize opportunity to develop the full extent of
their capacities and relatively stable environment in which they can work together
• To have at all times effective and well-motivated employees at all levels of the
organization, who are committed to attain organizational goals and help the
company to remain a corporate leader in the country.
• We are conscious that the conduct and character of this company depends ultimately,
on the many thousands of persons who contribute to its varied functions.
HR Objectives:
• To attract, retain and develop efficient manpower at all levels of the organization to
meet current and future needs of our diversified business.
• To empower employees for organizational effectiveness through attainment of
specific tasks, appropriate organizational structure, appropriate delegation of
authorities and reward system.
• To identify training and development needs of employees and to provide appropriate
facilities/environment for continuous development through training, job rotation,
deputisation, project management and self development programme etc,. to equip
them for higher responsibilities.

• To evolve and implement pragmatic employee relationship policy, which would
contribute to harmonious relations leading to optimum productivity, reduction in
manpower cost and wasteful expenditure and also helpful in maintaining image of
ACC as an enlightened organization.
Recruitment in ACC is a very fair and transparent process with adequate
opportunities to look for suitable candidates internally as well as from outside. Applicants
are generally invited on the basis of specific advertisements in newspapers and websites. A
Committee of officers called the Central Recruitment Committee handles the entire
recruitment process comprising screening of applications, preliminary short-listing,
interviews and final selection. Every attempt is made to make the selection process as
objective as possible by incorporating tests of competence. In some cases, outside
consultants are retained. All decisions of the recruitment committee are recorded in respect
of each candidate. Candidates are informed of their short-listing and selection immediately
after the interview or at the earliest thereafter.

Performance Management
The Company’s performance management system is in itself a benchmark that
provides ample opportunities and motivational incentives to employees so as to reward and
retain good talent within the Company. These incentives include Performance Linked
Incentives, Good Work Awards, Letters of Appreciation, Special Increments, Promotions,
Nomination to external training programmes in India and abroad, public felicitation and
appreciation. Some plants have Best Employee and Employee of the Month Awards and
recognition. Competent employees and those who display aptitude are invited to become
Trainers themselves and receive Train the Trainer facilitation.

Training & Development

Our new Performance Management System incorporates a process called
Competency Assessment and Training and Developmental Needs wherein appraisers are
specifically called upon to identify and assess training needs of employees at specific
intervals that do not coincide with Performance Appraisals. This is so that training needs
can be assessed objectively. Training is imparted to take care of an individual’s career
development as well as functional and skill enhancement. Competency and Development
training inputs include Skill and general performance enhancement, communication skills
and Career development. Functional training needs are identified and conducted by

functional departments while Corporate HR organizes competency and developmental

Employee Welfare & Perquisites

Employee welfare receives prime attention at ACC. We have several schemes for
general welfare of employees and their families. These cover education, healthcare,
retirement benefits, loans and financial assistance and recreation facilities.

ACC townships have excellent schools that are often the best in the district.
Education at these schools is subsidized for employees’ wards. We offer attractive
scholarship allowances for children studying at places away from their parents, merit
scholarships for outstanding children and financial assistance for employees’ children to
pursue higher professional education.

Liberal medical benefits are made available to employees and their family members
by way of reimbursements towards normal medical treatment, domiciliary treatments and
special sanctions for serious illness. Each of our townships has well-equipped health care
centers with qualified medical staff and facilities, ambulance, referrals and tie-ups with
reputed hospitals for specialized treatment. In addition, there are regular health checkups,
camps and programmes.

Employees are eligible to apply for loans and financial assistance for various
purposes such as purchase of assets, residential premises as well as a scheme that provides
for supply of cement at subsidized rates to those building their own houses.

At our cement plants and factories, employees are provided furnished and
unfurnished accommodation based on their entitlements. At many locations, the employees
are given free electricity, free water supply and free bus facility for nearby places and
schools. These houses are well-maintained and periodically upgraded.

Employee Satisfaction
In addition to periodic internal Employee Satisfaction Surveys, we participate in Employee
Satisfaction and Work Places Surveys conducted by reputed external agencies and
organizations like Hewitt Associates Grow Talent. And from time to time, ACC has also
retained reputed firms like Mercer and Boston Consulting Group to study our internal work
environment and employee policies and suggest areas of improvement

The HR manager handed over the HR policy document to us before the discussion to have
a fair idea of the HR policies of the company. A few excerpts of the discussion with the
HR manager have been scripted below:

1. What is your biggest professional challenge?

Everything is difficult in the life of HR, we have to manage both the

management and the people. Meeting the demands of the both the parties is the toughest
job, the management have a different demand depending upon the industry requirement.
But the people will always have same or increasing demand on the management
irrespective of the management or the situation. The HR has to satisfy the management
mostly and convince/manage the people with that decision. But people won’t react
towards the management; they will get fed up with the HR instead.

2. Have you ever regretted for choosing HR as specialization? Why not marketing or

Never, I m happy to be a HR. Infact, I’m proud to have chosen to be a HR.

Every HR should enjoy their job. The main task is to satisfy the people, all we do is to
increase their satisfaction.

3. How is performance appraisal process carried out in your organization?

Performance Appraisal process is done based on the following three metrics,

they are
E+  Above the desired expectation
E  Meets the Expectation
E-  Below the desired Expectation.

The performance appraisal done here is 180 degree, where the both the superior and
the subordinate rates the appraisee.

4. How are the grievances of the employees in the organization met? Is it met within
three days?

There are no grievances at all…! The trade unions will take care of the
grievances of the staffs. All we have to do is to take care of the trade unions and the
trade unions will take care of them.

5. What are the HR concepts you learnt, but never used in real time?

I have learnt many, but never used any of those here. I would say that nothing
that I’ve learnt theoretically had been a practice here. Everything is different in
practical, not a single concept is used.

6. What is your advice to someone looking for a career in HR?

All the concepts you learn are not going to contribute anything in real life. My
advice to HR students is study the “Labor Law” more than Human resource concepts.
Students from IIM’s and from PSGIM have the same level of knowledge in case of
labor law. HR students having good knowledge in labor law may take them a step
ahead, when you attend a interview. Every day we had to find a lawyer for various
cases like employment case, contract labor case, ESI case, PF case, etc,.

A HR should talk with many people and gain more contacts. Maintaining
more contacts and managing people will be very useful in the life of an HR.

7. What would you do if an employee lack in interest in the job?

We have skill up gradation process, we use skill matrix and spider chart. If
skill up gradation process is done for a fitter, then a questionnaire is prepared for the
fitter, a different questionnaire for Head of the department, and a different one for

shift incharge. The gap between the answers is analyzed and information is used for
making a spider chart. The spider chart will show the position of the employee.

8. Any concern for occupational health and safety?

Safety of each and every employee is very important at ACC and constantly it
is being monitored and necessary upgradations and updations are carried out. Our
Occupational Health and safety department has a vision of “NO HARM ANYWHERE
TO ANYONE ASSOCIATED WITH ACC”. These includes providing safety working
conditions, safe control of work, and supply information on work hazard, arrange
adequate training and instruction in safe working practice.

9. What are the Fringe Benefits given to the employees at your organization?

Issue of cement at concessional rates for construction/maintenance repair of

hours/ownership flat, Medical Benefits/Allowances, Silver Jubilee /Long Service
Awards, Family Planning Cash Awards, Travel concession on retirement,
Retirement award/gift, Group personal accident policy for management staff, Janata
personal accident policy for NMS and additional medical insurance coverage for
management staff.

10. What are the other allowances given to the employees, are they satisfied with
There are many allowances like Scholarship allowance to children of officers,
Leave Travel Allowance, Telephone Expense reimbursement- Telephone expenses to
management staff in E3 and E6, where own residential telephones on rental basis are
reimbursed on production of actual bills, Home Rent Allowance, Good Work
Rewards, Kit allowances- Management staff going abroad on company business trips
are given Rs10, 000 as kit allowances and Mileage allowances.

An employee working at ACC would never want to switch over to another
company in search of better prospects as ACC caters the best to its parivars.

11. Explain about the performance management system used for appraisal?

In our company we have a well defined performance management system.

The key elements of performance management system are Role, Key Performance
Area etc...

The factors we see in employees are

1. People Development
2. Strategic Planning and Decision
3. Team Work
4. Innovation and best practice
5. External relationship management
6. Communication and negotiation
7. Initiative and drive
8. Reliability
9. Customer Orientation
10. Role modeling core values

Measurement Metrics

Strategic Functional Dept. Head/ Supervisors/

Matrix Leader Manager Area Officer Field Officer

Quantitative 30% 50% 60% 30%

Qualitative 70% 50% 40% 70%

12. Recruitment process at ACC

High level employees: Internal

Low level employees: contractual basis.
HR should know the contractual law for the hiring those people.

13.Can you elaborate on Man Power planning in your company?

To provide adequately trained and qualified manpower for present and future
• Man power planning aims at scientifically predicting man power requirements of the
company and to accomplish the same through requirement, training, promotion,
transfers, redeployment etc.
• Providing for orderly succession of management staff
• Providing opportunities for growth and personal development.

• A rolling manpower planning for officers is prepared which projects the yearly
manpower requirement on the basis of requirement, expected rate of separation
company’s expansion plans, redeployment of management staff and other factors.

• All management staff shall be appointed based on the requisite of the company
vacancy and to be sanctioned by Managing Director.
• Should be certified by quality medical practitioner approved by the company, to be
medically fit.
• Should produce a certificate by competent authority having good moral character.

• Not to be less than 18.
• Upper limit as prescribed by appointment authority (MD).

• It is done by Managing Director.
• Approval of Managing Director needed in case of retirement, resignation, dismissal,
termination etc.
• Replacement is also done by Managing Director.
• Through CRC and campus recruitments.

14. How about the work life balance of the employee and the leave privileges?
Weekly working hours for every employee is 36 ¼hrs. We have 5 days as
working days, Monday to Friday from 9.15 am to 5.00 pm, and 30 minutes lunch
break. All Purpose Leave (APL) of 40 days in every calendar year, employees
(permanent) eligible after the completion of one year, Casual Leave of 7 days,
special leave and extra special leave, special accident leave, Study leave in India and
abroad and Family planning leave for 6 days.

15.How new employees are concerned in the company?

Induction Programs:
• To inculcate a sense of belonging to the organization.
• To acquaint the employee with his surroundings, policies and procedures.
• Management trainee induction is done in a more exhaustive manner.

• Time duration is 12 months.
• Probationers get feedback on performance, strength-weakness are communicated
and these are dealt with superiors for permanent employment.

Employees Months for
feedback/timing for
Managers on probation 6, 9, 11
Other officers 6, 9, 11
Managements trainees
6 month training 2, 4, 5
12 month probation 6, 9, 11
Engineer trainees
18 month training 3, 6, 9, 12, 15, 17
6 month probation 2, 5

New employers:
• In order to understand concerns of new hires, they are provided with a platform for
personal interactions.
• Pre confirmation meetings are organized.
• Collection of suggestions and understand gaps observed by the employee with
reference to his/her expectation.
• Validate the performance assessment recommended by the immediate supervisors.

• After successful completion of his/her probation period, he/she is made permanent
employee in the company with increment in salary.
• Minimum years to become permanent is six years.
• Conformation is not conformed if it is not given in writing.

Outstanding performance 10% increase in salary
Very good performance 8% increase in salary
Good performance 6% increase in salary

16.How is Re-employment in your company?

Contractual assignment can be considered and must be reviewed carefully by
respective unit heads and therefore the proposals should be forwarded to Corporate
HR for due approval of Manager Director.
Reappointment of Managers:
• Based on fitness.
• They are appointed based on the salary not higher than existing employees.
• Checked with similar background age, qualification, experience and performance.
• Rehiring within one year.
• Promotions of employees are considered by Managing Directors, Business
Heads/Functional Heads.
• Vacancy is cleared.
• Resident period in each grade based on the qualifications of the employees.
• Minimum percentage criteria are checked.
• Minimum threshold competency level is verified for next higher job.
• Approval is done by Managing Director.
• It is carried out based on the exigencies of the company’s need.
• For employee career progression in the company.

17. Have you ever faced a situation where management wanted to take any decisions
against the employees?
There is a problem of paying per day. The union will come with the demand of
Rs.300 but company can provide only Rs.150.

18.What is the strategy to reinforce some rules?

Tactics for the HR. Should build upon the strong relations between trade union
leaders and HR. Any grievances are addressed to the HR management and leaders and not
to employees . It is the inbuilt habit of the HR to make it delicious to the employees. For
example arranging parties are also one of the tasks for HR to managing people.

19.Information system in your company?

Information system is not used in this company but has been implemented in the
main head office.

20.How about the HR budget?

We have a plant budget for Madukkarai every year, like
• Training Rs.13 lakh.
• Canteen Rs.40 lakh.
• Colony facilities Rs.1 Crore
Summing up, nearly 1.5 Crore spent for HR activities. And this amount is
distributed accordingly.

21.Can you tell some critical problem that you faced recently?
HR job is full of critical problems all the time. Well.. This happened 2 days
back, a non-management staff was transferred from the Kiln department to the mines at
Walayar as his immediate superior had given feedback that the person is having a lot of
idle hours. The HR team after a check had initiated a transfer. The staff had become
angry of this transfer and had exhibited it by way of broking the window panes.

22.Do you have any employee unions in your company and how is your relationship
with them?
There are three unions like IMTUC, AITUC, and Congress. The most
important task of the management is to manage the union leaders, because the union has
more influence on the employees.

The discussion with the HR manager at ACC cements had given us a deep insight
into the reality and nature of the human resources department. From the perspective of
interviewee we understood that the theoretical knowledge which we learn cannot be
applied practically. The scenario is entirely different when we work. It is advised to study
Labor law more than Human Resource concepts because working as a HR in mainly about
the talking and interacting with employees. Practical knowledge is needed in managing
employees and maintaining more contacts will help HR job. To gain employee satisfaction
more fringe benefits should be given. The company provides much kind of allowances
which holds the company to retain in the company. The work-life balance is maintained
among the companies.

We share below salient points of a latest survey of employees:

• People are treated fairly regardless of religion and gender
• ACC is a safe place to work
• Management is competent in running business
• Employees feel good about what we do for society
• Proud to tell others I work here
• Management thinks positively

The overall findings show significant job satisfaction at all levels as also deep
respect for the company, its performance management system and its overall business