A

REPORT

ON

“INTERNSHIP TRAINING IN THE DEPARTMENT OF HUMAN

RESOURCE MANAGEMENT”

AT

“AIRPORTS AUTHORITY OF INDIA”

SAFDARJUNG AIRPORT

SUBMITTED IN

PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATION

((Affiliated to Dr. A.P.J. Abdul Kalam Technical

University, Lucknow, Session: 2021-23)

BY

SHWETA SINGH

(Internship Order No.- 73/2022)

 DECLARATION

I am SHWETA SINGH hereby declare that the project titled “Maintenance of

Gratuity, EPS and EPF as per the rules and regulations of government of
India” is my own work and efforts which is

completed under the supervision of Ms. Aditi Anshul Sharan, Sr. Manager
(HR) Social Security Cell, CHQ, Airport Authority of India, New Delhi.

The Research report has been submitted to JAIPURIA INSTITUTE OF

MANAGEMENT for the purpose of compliance of any examination or any
degree earlier.

Submitted To: Submitted By:

Ms. Aditi Anshul Sharan Shweta Singh

Roll no.- 2101160700147

MBA – 3rd Semester

 ACKNOWLEDGEMENT

First and foremost, I thank the almighty for keeping me hale and healthy for the
successful completion of the internship. It gives me immense pleasure and privilege
to acknowledge my deepest sense of gratitude towards all those who helped me in
the completion of this report.

I extend my deep sense of gratitude to AIRPORTS AUTHORITY OF INDIA for giving

me a chance to do an internship in their organisation.

I would like to express my heartfelt thanks to Ms. Aditi Anshul Sharan, Sr. Manager
(HR) Social Security Cell, CHQ, Airport Authority of India, New Delhi and other
employees of the HR department for devoting time from their busy schedule and
explaining how work is being done in their organisation and assigning me with
various tasks during the training period in HR.

I also takethe pleasure to express our sincere thanks to all the staff members of the
Department of management studies, Jaipuria institute of Management for their kind
cooperation.

Last but not the least, I would also like to convey my deepest gratitudeto my parents
and friends, who have always been a source of inspiration towards the completion of
my internship.
 ORGANISATION
Airports Authority of India (AAI) was constituted by an Act of Parliament and came
into being on 1st April 1995 by merging erstwhile National Airports Authority and
International Airports Authority of India. The merger brought into existence a single
Organization entrusted with the responsibility of creating, upgrading, maintaining and
managing civil aviation infrastructure both on the ground and air space in the
country.

AAI manages 125 airports, which include 18 International Airport, 07 Customs

Airports, 78 Domestic Airports and 26 Civil Enclaves at Defense airfields. AAI
provides air navigation services over 2.8 million square nautical miles of air space.
During the year 2013-14, AAI handled aircraft movement of 1536.60 Thousand
[International 335.95 & Domestic 1200.65], Passengers handled 168.91 Million
[International 46.62 & Domestic 122.29] and the cargo handled 2279.14 thousand
MT [International 1443.04 & Domestic 836.10].

MISSION AND VISION OF AAI:

 MISSION:
 “To be the foundation of an enduring Indian aviation network, providing high
quality, safe and customer – oriented airport and air navigation services
thereby acting as a catalyst for economic growth in the areas we serve”.

 VISION:

To be the principal aviation services provider in the country, AAI shall:

 Adopt and facilitate the use of contemporary air navigation services

 Update and develop airport infrastructure
 Support improving air connectivity at un-served and under-served airports
 Have a restructured organisation

Focus on profitable operation at major airports through continuing efforts on cost

reduction and enhancing non – aeronautical revenue.
 HUMAN RESOURCE MANAGEMENT

Human resource management is the strategy approach to the effective

management all people in an organization so that they help the business
to gain a competitive advantage competitive advantage. It is designed to
maximize employee performance in service or an employer's strategic
objectives. HR is primarily concerned with the management of people
within organizations, focusing on policies and on systems. HR
departments are responsible for overseeing employee-benefits design,
employee recruitment, training and development, performance appraisal,
and Reward management (e.g., managing pay and benefit systems). HR
also concerns itself with organizational change and industrial relations,
which is the balancing of organizational practices with requirements
arising from collective bargaining and from governmental laws.

Human resources overall purpose is to ensure that the

organization is able to achieve success through people. HR
professionals manage the human capital of an organization and focus on
implementing policies and processes. They can specialize in recruiting,
training, employee relations or benefits, recruiting specialists, find and
hire top talent. Training and development professionals ensure that
employees are trained and have continuous development.

This is done through training programs, performance evaluations, and

reward programs. Employee relations deal with concerns of employees
when policies are broken, such as in case involving harassment or
discrimination. Employee benefits role includes developing
compensation structures, family-leave programs discounts and other
benefits that employees can get. On the other side of the field are
human resources generalists or business partners. These human-
resources professionals could work in all areas or be labour-relations
representatives working with unionized employees.

HR is a product of the human relations movement of the early 20th

century when researches began documenting ways of creating business
value through the strategic management of the workforce. It was initially
dominated by transactional work, such as payroll and benefits
administration, but due to globalization, company consolidation,
technological advances, and further research HR as of 2015 focuses on
strategic initiatives like mergers and acquisitions, talent management,
succession planning, industrial and labour relations, and diversity and
inclusion. In the current global work environment, most companies
focus on lowering employee turnover and on retaining the talent and
knowledge held by their workforce. New hiring not only entails a high
cost but also increases the risk of a newcomer not being able to replace
the person who worked in a position before. HR departments strive to
offer benefits that will appeal to workers, thus reducing the risk of losing
employee commitment and psychological ownership.

DEFINITION

Human resource management (HRM) is the practice of recruiting, hiring,

deploying and managing an organization’s employees. HRM is often
referred to simply as human resources (HR). A company or
organization’s HR department is usually responsible for creating, putting
into effect and overseeing policies governing workers and the
relationship of the organization with its employees. The term human
resources were first used in the early 1900s, and then more widely in the
1960s, to describe the people who work for the organization, in
aggregate.
HRM is really employee management with an emphasis on those
employees as assets of the business. In this context, employees are
sometimes referred to as human capital. As with other business assets,

the goal is to make effective use of employees, reducing risk and

maximizing return on investment (ROI).

The modern Hr technology term, human capital management

(HCM), has come into more frequent use than the term, HRM, with the
widespread adoption by large and midsize companies and other
organizations of software to manage many HR functions.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

The objectives of HRM can be broken down into four categories:

 Societal objectives: Measures put into place that responds to the

ethical and social needs or challenges of the company and its
employees. This includes legal issues such as equal opportunity
and equal pay for equal work.
 Organizational objectives: Actions taken that help to ensure the
efficiently of the organization. This includes providing training,
hiring the right amount of employees for a given task or
maintaining high employee retention rates.
 Functional objectives: Guidelines used to keep the HR functioning
properly within the organization as a whole. This includes making
sure that all of HR’s resources are being allocated to its full
potential.
 Personal objectives: Resources used to support the personal goals
of each employee. This includes offering the opportunity for
education or career development as well as maintains employee
satisfaction.
HUMAN RESOURCE MANAGEMENT FUNCTIONS:

HRM can be broken down into subsections, typically by pre-employment

and employment phases, with an HR manager assigned to each.
Different areas of HRM oversight can include the following:

 Employee recruitment, on boarding and retention.

 Talent management and workforce management.
 Job role assignment and career development.
 Compensation and benefits.
 Labour law compliance.
 Performance management.
 Training and development.
 Succession planning.
 Employee engagement and recognition.
 Team Building.

SECTIONS OF HRM IN AAI:

PENSION:

The AAI has Separate section for Pension, which helps to process the
Pension for Retired Employees of AAI. The Retirement of Employee can
be in any form, which can be denoted as

 Superannuation
 Self-Resignation
 Company Resignation
 Death
SUPERANNUATION:

The Superannuation is the Retirement Pension, where the Employee of

the AAI who have aged 58 or above is eligible to undergo this
Superannuation Pension. The minimal requirement to eligible for this
Pension, an Employee must have served AAI for at least 10 year or
above.

SELF RESIGNATION:

This type of Resignation can be made with full endorsement of

Employee’s Will, Whether He / She has to Leave the current Job or
Posting of AAI before or after 10 years of service, which states the
minimal requirement to eligible for Pension.

COMPANY RESIGNATION:

This type of Resignation can be made with full endorsement of Company

Will, Whether HE / SHE has to be fired or terminated from the Current
Job or Posting of AAI before or after 10 years of service, where the
Resignation decision is totally belongs to the Company, Also the
Pension benefit of the Employee is totally belongs upon his/her Service
Period.

DEATH:

In case of Death, if an Employee has served AAI for 10 years or above,

the Beneficial Pension for the family members will get the Amount
according to the Designation and last basic pay of an Employee.
PENSION FORMS:

 10 – D Form
 SBS Form

10 – D FORM:

This is the Form which is used to fill the Employee’s details, who is
eligible for the Pension according to the Act of 1995 Amendment, which
helps the Pension Officer to process the Pension for the retired
Employee from the Stage 1 by filtering the various proofs of Employee,
Spouse and Nominees

Various Proofs to be submitted for 10 – D Form:

 Joint picture of Employee and Spouse

 Aadhaar card photo copy of Employee and Spouse
 Service Record photo copy of Employee
 Joint Account Bank pass Book of Employee and Spouse
 1 Joint Account Cancelled Cheque of Employee and Spouse

The above stated 10 - D Form and its proofs of 4 copies must be

Available to avail it for Different uses:

FORM 1: Office Copy

FORM 2: Despatch Copy to Delhi

FORM 3: Pension Office Copy

FORM 4: CHQ (Chennai Head Quarter) of AAI Copy

SBS FORM:

This is the Form which is used to fill the Employee details, who is already
eligible for Pension; Where the SBS Form helps the Retired Employees
from 2007 to 2014 to acquire their 10% of increment from their latest
Pension.

Various Proofs to be submitted for SBS Form

 Aadhaar card of Employee, Spouse and Nominee

 PAN card of Employee, Spouse and Nominee
 Employee ID card
 Pay slip Photo
 Bank pass Book
 Cancelled cheque

BENEFITS:

 GRATUITY

Gratuity is a part of salary that is received by an employee from his/her

employer in gratitude for the service offered by the employee in the
company.
 The maximum retirement or death gratuity payable to a retired or
deceased Central Government Employee is Rs 20 lakh.
According to “Pension Rules 2021” released by the Department of
Pension and Pensioners’ Welfare (DoPPW), retirement gratuity
equal to one-fourth of emoluments for each completed six monthly
periods of qualifying service can be paid to a government servant,
who has completed five years’ qualifying service and has become
eligible for service gratuity or pension under Rule 44.

The gratuity amount is subject to a maximum of 16½ times the

emoluments.

“A Government servant, who has completed five years’ qualifying

service and has become eligible for service gratuity or pension under
Rule 44 shall, on his retirement, be granted retirement gratuity equal to
one-fourth of his emoluments for each completed six monthly period of
qualifying service, subject to a maximum of 16½ times the emoluments,”
Pension Rules 2021 says.

Death gratuity is paid to the family in case a Government servant dies

while in service. The rate for payment of death gratuity is following:

Death Gratuity

If the length of qualifying service is less than one year: Gratuity to be

paid is 2 times of emoluments.
If the length of qualifying service is one year or more but less than 5
years: Gratuity to be paid is 6 times of emoluments.
If the length of qualifying service is 5 years or more but less than 11
years, Gratuity to be paid is 12 times of emoluments.
If the length of qualifying service is 11 years or more but less than 20
years: Gratuity to be paid is 20 times of emoluments.

If the length of qualifying service is 20 years or more: Gratuity to be paid

is half of emolouments for every completed six-monthly period of
qualifying service subject to a maximum of 33 times or emoluments.

The above death gratuity rates are also applicable in case of the death
of a Government servant by suicide.

If a government retired government servant dies within 5 years from the

date of retirement and without receiving an amount equal to or 12 times
of his emoluments are gratuity or pension, then a residuary gratuity
equal to the deficiency may be granted to his family, according to
Pension Rules 2021.

Retirement Gratuity

This is payable to the retiring Government servant. A minimum of 5

years' qualifying service and eligibility to receive service gratuity/pension
is essential to get this one time lump sum benefit. Retirement gratuity is
calculated @ 1/4th of a month’s Basic Pay plus Dearness Allowance
drawn on the date of retirement for each completed six monthly period of
qualifying service. There is no minimum limit for the amount of gratuity.
The retirement gratuity payable for qualifying service of 33 years or more
is 16½ times the Basic Pay plus DA, subject to a maximum of Rs. 20
lakhs.
Qualifying service

For calculating the length of qualifying service, a fraction of a year equal

to three months and above is treated as a completed six monthly period
and reckoned as qualifying service.

If an employee has served for 4 years nine months or more but less than
5 years, then his/her qualifying service for calculation of gratuity will be
taken as 5 years. And she/he will be eligible for retirement gratuity.

Dearness Allowance

According to the Pension Rules 2021, dearness allowance admissible

on the date of retirement or death shall also be treated as emoluments
for the purpose of calculation of gratuity.

EPS (Employee Pension Scheme):

The minimum eligibility period for receipt of pension is 10 years. A

Central Government servant retiring in accordance with the Pension
Rules is entitled to receive pension on completion of at least 10 years of
qualifying service.

In the case of Family Pension the widow is eligible to receive family

pension on death of her spouse after completion of one year of
continuous service or even before completion of one year if the
Government servant had been examined by the appropriate Medical
Authority and declared fit for Government service.

W.e.f 1.1.2006, Pension is calculated with reference to emoluments

(i.e.last basic pay) or average emoluments (i.e. average of the basic pay
drawn during the last 10 months of the service) whichever is more
beneficial. The amount of pension is 50% of the emoluments or average
emoluments whichever is beneficial.

Minimum pension presently is Rs. 9000 per month. Maximum limit on

pension is 50% of the highest pay in the Government of India (presently
Rs. 1,25,000) per month. Pension is payable up to and including the
date of death.

Public Provident Fund (PPF):

The Public Provident Fund (PPF) is a savings-cum-tax-saving instrument

in India introduced by the National Savings Institute of the Ministry of
Finance in 1968. The main objective of the scheme is to mobilize small
savings by offering an investment with reasonable returns combined with
income tax benefits. The scheme is fully guaranteed by the Central
Government. Balance in the PPF account is not subject to attachment
under any order or decree of court under the Government Savings
Banks Act, 1873. However Income Tax & other Government authorities
can attach the account for recovering tax dues. The balance of a PPF
account is fully exempt from wealth tax.

Features:

The public provident fund is established by the central government. One

can voluntarily open an account with any nationalized bank, selected
authorized private bank or post office. The account can be opened in the
name of individuals including minor.

 The minimum amount is ₹500 which can be deposited.

 The rate of interest at present is 7.1% per annum (as of April

2020).

 Interest received is tax free.

  The entire balance can be withdrawn on maturity.

 The maximum amount which can be deposited every year is

₹150,000 in an account at present.

 The interest earned on the PPF subscription is compounded

annually.

 All the balance that accumulates over time is exempted from

wealth tax.

Withdrawals from PPF account:

There is a lock-in period of 15 years and the money can be withdrawn in

full after its maturity period. However, pre-mature withdrawals can be
made from the start of the seventh financial year. The maximum amount
that can be withdrawn pre-maturely is equal to 50% of the amount that
stood in the account at the end of 4th year preceding year or the end of
immediately preceding year whichever is lower.

After 15 years of maturity, the full PPF amount can be withdrawn which
is tax free, including the interest amount as well.

NOMINATION:

Nomination facility is available in the name of one or more persons. The

shares of nominees may also be defined by the subscriber.
INVESTMENT & RETURN:

A minimum yearly deposit of ₹500 is required to open and maintain a

PPF account. A PPF account holder can deposit a maximum of ₹1.5
lacs in his/her PPF account (including those accounts where he is the
guardian) per financial year. There must be a guardian for PPF accounts
opened in the name of minor children. Parents can act as guardians in
such PPF accounts of minor children. Any amount deposited more than
₹1.5 lacs in a financial year will not earn any interest. The amount can
be deposited in lump sum or in instalments per year. However, this does
not mean a single deposit once in a month.

The Ministry of Finance, Government of India announces the rate of

interest for PPF account every quarter. The interest compounded
annually and paid in March every year. Interest is calculated on the
lowest balance between the close of the fifth day and the last day of
every month.

TRANSFER OF PPF ACCOUNT:

The account can be transferred to other branches/ other banks or Post

Offices and vice versa upon request by the subscriber. The service is
free of charges.

Step 1 – Approach the bank or post office branch where the PPF
account is held and ask for the form for making the transfer. The bank or
post office will provide you with a form which is to be filled.
Step 2 – The existing bank will then forward the certified copy of the
account, the account opening application, nomination form, and
specimen signature. It will also forward the cheque/dd for the
outstanding amount in the PPF account to the new bank at the branch
specified by the customer.

Step 3 – Once your bank receives these documents, the bank will inform
you and ask you to submit a new PPF account opening form along with
the old PPF passbook. You can also provide nominations for this new
account. You will also be required to submit the KYC documents.

Step 4 – If you hold an internet banking facility with your bank, after a
few weeks, check that the transferred PPF account now shows up under
the PPF account tab/link in your login. If that is not the case, inquire the
local bank branch.
ROLES & RESPONSIBILITY OF HR IN AIRPORT
AUTHORITY OF INDIA:

The functional responsibility includes-

 Managing a workforce of 18500 employees working at various

airports in the country. The major functions associated include
organization of human resource polices for uniform application at
all the airports.

 The other functions include dealing establishment matters of all

employees, recruitments and induction, promotions, transfers,
beside Industrial relations at all the AAI Airports in the country.

 Maintenance of General Service Conditions, Disciplinary matters,

Performance Appraisals and effective implementation of Social
Security Schemes which includes Superannuation benefits under
the ambit of Govt. guidelines and Pension Schemes.

 Airports Authority of India ensures compliance of Act and Rules

under Official Language Policy of Government of India. During the
year, Hindi workshops were conducted at CHQ, Regional
Headquarters and Field stations to encourage the employees for
the use of Hindi & to review the progress of Hindi. Official
Language Implementation Committee Meetings were conducted at
CHQ & all stations.
 CONCLUSION:

The whole experience in AAI was great. I learned a lot about the Human
resource department and the process involved in it. The work I did was
completely satisfactory .I have tried as many add-ons as possible and
even got enough encouraging results with some of them. I hope my work
on AAI helps to meet its goals.

I have learnt all about the Pension Department, to do the rectification in

mismatch of Pension Documents, and also about Time department,
allotment of quarters, maintain service record. This enhances me to
develop my skills and knowledge which will help me to utilize in future. I
had good interaction between all staff members and helped me a lot
whenever I am seeking for a need.

I would like to express my gratitude and I am thankful to all the superiors

who guided me in gaining experience through this internship training and
programme.