Professional Documents
Culture Documents
Employeewelfarescheme
Employeewelfarescheme
&
OTHER COMPANIES
B.tech+MBA Programme
2010-2015
(10/iee/016)
School of Management
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A REPORT
ON
COMPARATIVE STUDY
OF
BETWEEN
HERO MOTORS
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School of Management
Gautam Buddha University
Gautam Buddha Nagar- 201 310
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ACKNOWLEDGEMENT
This report has been made possible through the direct and indirect cooperation of various
Dr. Sharadendu Pandey, who has continuously provided his valuable suggestions and
DEEPAK DAHIMA
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Executive summary
The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of
the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or
benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or
prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor
Management Relations Act, 1947 (other than pensions on retirement or death, and insurance
Welfare facilities include toilets, washing facilities, rest and changing facilities, personal
security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities,
personal growth facilities like library facility; training facility, Safety and Security measures,
adjustable working shift and timing, festival grants, transportation facility, housing facility
etc.
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TABLE OF CONTENTS
1. Acknowledgement
2. Executive summery
3. Introduction
• Definition of Employee Welfare Schemes
• Facilities cover under Employee Welfare Schemes
• Need of Employee Welfare in organization
4. Company Profile
• Overview of the company
• History of Hero Motors
• Evaluation of Hero Motors
• Mission & Vision of Hero Motors
• Values of Hero Motors
• Corporate Objective of Hero Motors
• Organization Structure of Hero Motors
5. Objective of the research
6. Research Methodolo
Sample
• Instrument used
• Data collection method
• Project evaluation method
7. Employee Welfare at Hero Motors
• Loan Policy
• Canteen facility
• Medical facility
• Uniform provided
• Transportation facility
• Training and developmento
• Telephone allowances
• Awards
• Gifts and events
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8. Data Analysis
• Comparison between companies regarding training cost
• Comparison between companies regarding loan facility
• Comparison between companies regarding canteen
• Comparison between companies regarding medicine cost
• Comparison between companies regarding mobile allowance
• Comparison between companies regarding Gift cost
• Comparison between companies regarding Break time
9. Conclucion
10. Suggestions & Limitations
A) Suggestions for Hero Motors
B) Limitations of project report
11. Questionnaire
Sample of questionnaire
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Company Profile:
Hero Motors is a part of the HERO GROUP, which is a multi billion dollar group with
diverse interests in manufacturing, engineering design, corporate services, and value added
engineering. Hero Motors is an integrated engineering services provider that has high quality
processes and a world-class technical team in place to deliver the best solutions in
engineering.
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The purpose of this report is to evaluate the on going activities carried out under “Employee
Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to
competently support the organization to develop and administer effective employee welfare
and ensure continuous commitment from employee part for achieving the ultimate goal of the
organization.
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RESEARCH METHODOLOGY:
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EMPLOYEE WELFARE
DEFINITION:
The terms ``employee welfare benefit plan'' and ``welfare plan'' are defined in section 3(1) of
the Act to include plans providing ``(I) medical, surgical, or hospital care or benefits, or
benefits, apprenticeship or other training programs, or day care centers, scholarship funds,
or prepaid legal services, or (ii) any benefit described in section 302(c) of the Labor
Management Relations Act, 1947 (other than pensions on retirement or death, and insurance
Welfare facilities include toilets, washing facilities, rest and changing facilities, personal
security arrangements (e.g. lockers) and refreshment, recreational facilities, Loan facilities,
personal growth facilities like library facility; training facility, Safety and Security measures,
adjustable working shift and timing, festival grants, transportation facility, housing facility
etc.
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Personal
Growth Facility
Safety &
Working Security
Condition
Other Loan
Facilities Facility
EMPLOYEE
WELFARE
SCHEMES
Recreational
Transportatio &
n Facility Refreshment
Facility
Medical Canteen
Facility Facility
Leave &
Holiday
Facility
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Working Condition
ENVIRONMENT ENVIRONMENT
1. Shifts 1. Ventilation
2. Overtime 2 .Air-conditioned
3. Breaks 3 .Lighting
. 4. Seating arrangement
5 .General Cleanliness
6. Humidity
7 .Personal Laptop
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ACCIDENT
PROTECTION
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Recreational Facility
CLUBS EVENTS
1. Gymnasium 1. Picnic
4. Festivals celebration
Refreshment Facility
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Medical Facility
Other facilities
SCHOLARSHIP GIFTS
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Fulfilling Governmental
Laws, Statutory Provisions
or required by customs of
the industry & country
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COMPANY PROFILE
• Product range: Gear block, Cylinder block, Swing arm, Main stand, Side stand,
• Hero Motors - Auto component outsourcing / scooter & Step through maker &
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support services.
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Delhi- 110019
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ACHIEVEMENTS:
Excellence 2008-09
• The NDTV Profit Car India & Bike India Awards 2007 in the following category:
• Adjudged 7th Top Indian Company in 2006 by Wallstreet Journal Asia (Top Indian
• Hero Group ranks amongst the top 10 Business Houses comprising 18 companies,
with an estimated turn over of US$ 1.8 billion during the fiscal year 2003-2004.
• HSBC-Merril Lynch has estimated Hero Group would be among the Top Value
Creator in 2001-2004.
• Hero Honda Motors was ranked 3rd amongst top Indian companies Review 2000-
• Hero Cycles Limited is a Guinness Book Record holder since 1986 as the wolrd’s
largest manufacturer of bycycles, with annual sales volume of 5.2 million bicycles in
FY 2004.
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• Hero Motors Limited was awarded as Highest Automobile Exporter in the year of
• Hero, the brand name synonymous with two-wheelers in India, is a multi-unit, multi-
ambition and indomitable grit of the Munjal Family. Munjal Brothers, the founders of
the Hero Group, started out in 1960’s in business of bicycle components, and then
complete bicycles. Like every success story, Hero's saga contains an element of spirit
and enterprise; of achievement through grit and determination, coupled with vision
• The company incorporated its business with the name of Majestic Auto Limited in
Later in 1988 another production plant, namely Majestic Auto Limited-II was
established by Mr. Pankaj Munal at Ghaziabad. In 2005 the company has demerged
and the second plant of Ghaziabad was renamed as Hero Motors Limited. The plant
area of Hero Motors spread over 30 acre land. HML has another small plant of 20
acre land at Manesar, near Gurgaon where they produce Ferrous casting products for
their customers.
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• Hero Motors (and subsequently Hero Global Design), set up in 1988 was originally
focused solely on the two-wheeler market. The company manufactured two stroke
mini motorcycles under the HERO PUCH brand, two stroke scooters under the
HERO WINNER brand and four-stroke step through motorcycles under the HERO
• The Automobile and the Automobile Component Industry is one of the largest
growing in India. Hero Motors considers this to be a focus area. Since 2004, based on
a new strategic initiative, Hero Motors is nurturing the integrated engineering service
provider business. HML now supplies automotive spare parts like gear block to
Austria,Cylinder block to L.G. and Swing arm; Main stand; Side stand; Chain case
etc to Hero.
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Austria
1998 - Started development of four stroke engines in technical collaboration with Briggs &
Stratton, USA
2003 - Launched motorcycle –HERO- STING Entered into agreements with ROTAX for
2005 - First supplies to ROTAX (Austria) and a World renowned Consumer Goods
2011- New licensing arrangement signed between Hero and Honda (Hero Honda is renamed
as Hero)
2012- Migration of all products to Brand Hero and Strategic partnership with Erik Buell
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VISION
The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's new
identity, reflects its commitment towards providing world class mobility solutions with
MISSION
Hero Motor’s mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it
The company will provide an engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and enduring relationships with its
partners
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The purpose of this report is to evaluate the on going activities carried out under “Employee
Welfare Schemes” in Hero Motors Ltd, and Comparing with other organization’s so that to
competently support the organization to develop and administer effective employee welfare
and ensure continuous commitment from employee part for achieving the ultimate goal of the
organization
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RESEARCH METHODOLOGY
• SAMPLE
ENGINEERIMG LTD.
• KENWOOD NIPPON
Instruments Used:
• Questionnaire
• Interview method
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• Sort out the feedback of different companies about what they give to their employees
and also sort out the information of benefits given by Hero Motors.
• Analysis of surveys through statistical tools, charts and evaluation of the study.
• Analysis of the information gathers from other companies and makes comparison of
total
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• Employees are always important in HERO MOTORS. HML wants employees who
can carry out their missions and fulfill their roles, with the aim of contributing to the
• In order to have a solid organization which attracts and inspires employees like these
to actively contribute to the Company with their best efforts, skills and abilities. Hero
where employees can focus on their work without distractions, the welfare and
benefits system also helps keep them in the best of health, and serves as a safety net,
LOAN POLICY:
Hero Motors provides its employees two types of loans- Personal loan for any personal
purpose like marriage, higher education, housing etc and Vehicle loan. Total 10 loans
approved in a month in “first come first serve” basis. For lower level employee there is no
interest charged up to Rs. 5000/- and recovered in 10 equal monthly installments from the
employee’s salary, above this amount 14% interest are charged/ year and recovered in 20
EMI. For higher level employee up to Rs.15000/- is interest free above which 14% interest
are charged.
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As vehicle loan, 75% of the total cost paid by company as loan in 5% interest and recovered
in 60 EMI including interest. Car loan available for managers and above only.
Managers - 1 Lac
CANTEEN FACILITY:
Canteen is not only a place for taking lunch or dinner. It is a place where employees of one
department can meet with employees of other departments and can make some conversation
that helps to improve the informal communication flow within organization. In Hero Motors
a specious and well-equipped canteen is there facilitated with every modern facility like
Hero Motors provides canteen subsidies for employees; lunch coupon distributed at Rs.14/-
and Rs. 3/- is paid by company as subsidy and at breaks two times free teas are provided.
Employees working for overtime above 4 hours are entitled for free lunch. Summer Trainees
are provided free lunch during their training periods. Except these meal allowances for lunch
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and snacks are also given to employees if they are outside the plant for any official purpose
during lunchtime. Hero Motors provides free lunch to the visitors and guests (like corporate
MEDICAL FACILITY:
At Hero Motors there is a dispensary where doctor visits regularly, daily 1 hour a doctor
attends patients. All time first-aid facility and medicines for any minor illness are available.
For any major accident or in any serious case patients are admitted to near by hospitals or
nursing home. The cost of medicines, rent of bed and others are given by company. Hero
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treatment
April 2013-
Hero Motors gives its employees medi-claim facility, under which the policy premiums for
employee are given by Hero Motors and policy premium of employee’s family members are
paid by employee.
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Uniform Provided:
To create a sense of unity, proud feelings for organization and a sense of belongingness it is
very necessary for every organization to create and maintain an identity. For this purpose
Hero Motors provides uniforms for all its employees from workers to high-level managers..
As per requirements of the job, personal protective equipments like masks, gloves, safety
shoes, dangri suits (for paint shop and machine shop workers), caps etc are also provided to
workers.
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cost
April
2013-
March
2012-
March
2011-
March
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Transportation facility:
employees. Because if the way to reach the organization is not very convenient and the
employee has to face lots of problems during every day journey it can affects the
organization in a very large way. It may results in late comings that hamper organizational
culture and also the productivity, again facing problems in daily up-down may irritate
employees and they may feel to switching the job means, increasing employee’s
dissatisfaction and lost of good employees which can be a severe problem for any
organization.
Hero Motors has three buses. The buses cover different routes for their workers coming from
different places.
9,65,000/-
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Training is way to make sure that employees have the right skills to effectively operate
various machines and manage various challenging situations. Employer gives training to
his/her employees so that employees can do the same job in some better way, which
ultimately increase the quantity of production and also the quality of work. It is basically
given by every organization for technical up-gradation of the job where as development
program is carried out with the view to explore and upgrade the qualities of employee’s inner
quality. Development program is very necessary for the personal growth of employees.
Hero Motors gives special emphasize on this aspect for its employees. In Hero Motors
‘Employee Training Programs’ are carried out by a group of people of Quality Department.
Hero Motors provides good scopes for employees to learn from Internal as well as External
Training. Employees can attend Seminars and Workshops arranged by other organization and
company bears entry fees for that. Hero Motors invites/hires external trainer from outsides
for ‘Worker’s Training’. Staff training programs also carried out as per training needs and
plans. The training programs are carried out in two basic ways- a) On the job training and b)
Off the job training. Off the job training is give using different methods like class room
training, group discussion etc. After training, trainees are evaluated and ranked by the trainer
to judge and compare their qualities and again a feed back form filled by trainees to welcome
their suggestions.
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programs:
Years Workshops
March'2013-
3,86,400 63,800 4,50,000
April'2014
March2012-
3,34,300 21,700 3,56,000
April'2013
March'2011-
5,89,000 37,600 6,26,600
April'2012
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Telephone Allowance:
Today’s business world is very dynamic in nature and it demands proper and quick execution
of any work. Managers have to update their information base in every moment and have to
take decisions in challenging situation. For this it is very necessary to stay connected with
their colleagues and boss within and outside organization also. Now a days most of the
Hero Motors grants mobile allowance from supervisor level to highest level of management
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• Motivated employees can give two times extra than a dissatisfied employee.
formal recognition. Award is a tool of motivating employees to do the job with new
• Hero Motors rewarding employees for long service and retirement. The “Long
Service Awards” are given for 5years, 10years, 15 years and 20 years. For 10 years
service “Two-in-One Music System”, 15 years “CD Player” and 20 years “gold chain
of 8 gms” are given by the company. There is an award given once in a year as
Celebration of various festivals and events are necessary to welcome a wind of relieve so that
employees can start their job with a new passion. Again these types of celebrations give
employees a chance to meet each other in an informal atmosphere and also a chance to show
their other creative talents. Although in Hero Motors these types of celebrations are not done
in very frequently, still some special days are celebrated by Hero Motor’s employees. The
“Foundation day” is celebrated every year, on that day puja or hawan are done in the
morning. After that, eminent personalities give their speeches and provide snacks by
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company. Special lunch is provided in all special occasions. “Independence Day”, “Republic
Hero Motors gives its employees Diwali Bonus & gifts with sweets in every year.
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DATA ANALYSIS
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500000
500000 450000
450000
400000
350000
300000
250000 200000
200000
150000
100000 60000 HML
50000 ESCORT
0 MOTHERSON
Training Cost NIPPON
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companies:
Companies Cost/employee/year
HML 1000
ESCORT 143
MOTHERSON348
NIPPON 30
1000
1000
900
800
700
HML
600
500 ESCORT
348
400 MOTHERSON
300 NIPPON
143
200
30
100
0
Cost/employee/year
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FACILITY:
200000 200000
200000
180000
160000
140000
HML
120000
100000 ESCORT
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Kenwood Nippon : 5
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Canteen Subsidies
NIPPON
0
12
MOTHERSON
7.25
ESCORT
HML
3
0 5 10 15
O
Companies Medicine
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Cost/employee/year
HML 120
ESCORT 60
MOTHERSON104
NIPPON 61
Medicine cost/employee/year
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120
HML
ESCORT
MOTHERSON
104 NIPPON
60
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Total Mobile
Companies allowance
HML 800000
ESCORT 600000
MOTHERSON1800000
NIPPON 450000
450000
1800000
600000 NIPPON
MOTHERSON
800000
ESCORT
w
n
clM
b
ie o
T
ta
HML
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Gift cost/employee/year
2000
1500
1000
500
0
Gifts cost
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70
60
60
50
50
40
40
30
30
20
10
0
N
N
L
T
HM
O
SO
O
PP
C
ER
NI
ES
TH
O
M
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CONCLUSION
• Escort pays a large amount (Rs. 210000/-) behind medicine and first aid
cost but cost per employee per year is only Rs. 60/-, in Motherson total
aid and medicine facility available to every department. The total cost
expended is not very high (Rs. 21000/-) but per employee cost is nominal
Rs.61/-. Hero Motors pays good attention in this regard, total amount
is satisfactory.
locations. Its expend Rs.18 lac as mobile allowance but this amount they
expended in their 4 units and per unit expenditure is Rs.4.5 lac. In HML
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it is Rs. 8 lac, in Nippon it is Rs. 4.5 lac and Escort that is Rs. 6 lac as
mobile allowance.
• Nippon pays the highest amount for gifts that is Rs. 2000/-, Motherson
pays Rs. 1000/- for gift of per employee per year, Escort pays Rs.1200/-
and Hero Motors expends Rs. 700/- per employee per year which is not
satisfactory.
year, it is same for Escort and Motherson, only in Nippon it is 4 pairs for
each employee. Hero Motors expends Rs 1000/- as per pair cost, Escort
expends Rs. 1200/- for per pair and Motherson expends Rs. 1250/- for
per pair cost. But Kenwood Nippon provides Uniform of Rs. 600 /- (per-
pair cost).
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break are given and in Nippon 30 minutes lunch break and 2 tea breaks of
workshops and the cost paid for per employee per year is Rs. 1000/-, in
Escort the total cost for training is Rs. 500000/- and per employee cost is
Rs. 143/-, in Motherson Total cost is Rs. 200000/- per unit and per
employee cost is Rs. 348/- and Nippon pays minimum attention in this
Escort has 20 buses and travel in two shifts where as Hero Motors has
• In Nippon if employees stay till 8:30 p.m. convenience are given to them,
if they stay till 10 p.m. food and convenience both are given to them and
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• Staff Welfare activities are well organized in Hero Motors, but there are
at hero motors but the service provided by the mess vendors is not up to
the mark. Hero Motors has to look after this problem, to solve this
company’s turnover.
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recreation center because working in long shifts can be tiring many times.
With the help of it workers can rejuvenate and work more efficiently.
Motors should arrange a library within the plant so that employees who
are eager to gain more knowledge of various fields can fulfill that.
organization Hero Motors has a well furnished reception area but the
called “Time Office”. Shift time is maintained from that room. Hero
Motors can use this room only for maintain shift timing and taking
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social get-together like picnic that is very necessary for Hero Motors
because due to lack of such events employees feel bore in their daily life.
team work.
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comparison.
• All companies are not able to provide all the detailed information needed
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QUESTIONNAIRE
PROFILE OF RESPONDENT
Name of Company:----------------------------------------------------------------------
Name of Employee:----------------------------------------------------------------------
Age; --------------------------------
Gender---------------------------
Education----------------------------------------------------------------------------------
Designation-------------------------------------------------------------------------------
ii) Lighting
c) Timings: I) Shifts:
ii) Overtime:
iii) Breaks:
d) Refreshment Facility:I) Latrine: Total No. :
Hygiene Cond.
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Intercom Facility
2. Policies
a) Loan policy: I) No. of loan
sanctioned/ month:
ii) Max amount of
loan given:
iii) Interest rate:
iv) Loan recovery
policy:
4. Medical Facility
a) Regular Doctor/ I) Visit/Week:
ii) Cost/year:
Dispensary:
b) First Aid &i) Avg. Cost/year.:
ii) Availability:
Medicine:
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a) Internal b) External
c) On-the-job d) Off-the-job
Appraisal: Effectively:
ii) Half yearly/
Yearly:
iii) Regular Scope
for Promotion:
d) Awards & I) Monetary
Certificates: Award:
ii) Long Service &
Retirement
Award:
iii) Regular
Attendance
Award:
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e) Library Facility:
6.Transportation Facility
a) Bus Service: I) No. of Buses:
ii) No. of trips/
shifts:
b) Allowance:
7. Telephone/ Mobile Facility
a) Mobile allowance: FOR Rs. /- per month
Rs. /- per month
DIFFERENT Rs. /- per month
LEVELS:
b) Telephone FOR Rs. /- per month
Rs. /- per month
Allowance: DIFFERENT Rs. /- per month
LEVELS:
8. Organizational Climate
a) Communication flow:
b) Way of supervision:
9. Safety Measure
a) Fire Protection:
b) Chemical/Hazardous
Protection:
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Accident Protection
Scolarship/
Year:
ii) Total amount
given/ Year:
facility:
Pants shoes,
sweaters:
ii) Yearly cost/
uniform:
iii) Cost of
Personal
Protective
Equipments:
iv) Total cost/
year:
d) Gifts:
e)
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f)
g)
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REFERENCES
WEBSITES:
• http://www.heromotors.com -12sep2014
• http://www.heromotocorp.com -14sep2014
books
international publication.
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