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“Human Resource Planning In Shree Cement Limited.” Submitted in partial fulfillment for the Award of degree of Master of Business Administration
Submitted By: Surbhi Rawat
Submitted To:Mr. R. K. Motwani
MBA III Sem.
Engineering College, Ajmer
With the help of this project I have come to know that mere knowledge is not enough to understand the human behavior and the how the organization plan human resource to perform the job in their organization. The summer training project has helped me to understand a few very important concepts that in today’s world are required and make business do well. Education imparts enlightenment but training polishes the personalities of an individual. The Institute directed me to undertake summer training project in Shree cement ltd. Beawar and prepare a report. The whole project is divided in five segments: o First segment consists of introduction, Objective of studies, Research Methodology, scope of study. o Second segment consists of industrial profile, Company profile. o Third segment consists facts and findings and Human Resource Planning. o Forth segment consists conclusion. o Fifth segment consists of Recommendations.
I express my sincere thanks to my project guide, Mr. Gopal Tripathi, Training Incharge of Human Resource Deptt. , for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance,support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project.
I would also like to thank the supporting staff of Human Resource Department, for their help and cooperation throughout our project.
(Signature of Student)
Name of the Students
CEMENT INDUSTRY STRUCTURE & DEVELOPMENTS
India is the second largest cement producer in the world next only to china. Despite the fact that the Indian economy continues to reel under the recessionary environments the Domestic cement industry emerged as an exception and registered a growth rate of 11 % in Production over the previous year. There are more than 130 large plants owned by 52 companies In. 2005-2006 the total installed capacity for cement manufacture stood 160.24 million tones. The capacity utilization of 88 %, the highest ever as compared to 83 % in the previous year. The industry recorded a production of 141.81 million tones. The share of blended cement has been increasing to 61 % from 56 %. As companies shifting their emphasis from OPC to blended cement. The cement industry on the whole, recorded a CARG of 10 % over the last two decades. The export during the year 2005-2006 is increased at 6.01 million tones against 4-07 million tones in the 2004-2005. However export of clinker went down to 3.18 million tones against 5.99 million tones.
OPPORTUNITES & THREATS : The cement industry in India is poised to grow satisfactorily as demand is anticipated due to in going “BHARAT NIRMAN" plan I other ambitious targets projected by Government; planning for timely completion of road project and focus on agriculture. The industry continues to be plagued by very high taxes both at the Central and state level, this is a major worry for the cement industry.
Outlook : The long term outlook for the cement industry is encouraging. The demand for cement from the government and private sector would continue to increase in coming year, because of substantial additional plan outlay provided by the central government in the infrastructure development and housing sector. The cement production has been increasing in the recent years with increased emphasis on production of blended cement.
Risk & Concerns: The truck loading restrictions imposed by state governments is a matter of concern as it increases overall cost to the industry. High level of taxed and duties imposed by Central as well as State Government and higher prices of fuels and freight are major concerns of the Industry.
SCENARIO OF INDAIN CEMENT INDSUTRY
Cement industry is a core sector and forms the backbone of the infrastructure development of the country. Cement manufacturing began is India in 1911 the 1st plant had a capacity of 200 tones per day. The industry was delicensed and uncontrolled in 1989. The Investment cost per ton installed capacity in 2002 for a cement plants is Rs. 4500 /- per ton as compared to Rs. 600/- per ton in late 70's India is one the best quality cement manufacturer's of the world . It stands in the top 5 cement producing nations of the world. 5
There are many big concerns producing cement in India.
%Growth in Cement Production-(2006-07/2005-06)(April-March) State 1.Northern Region a. Punjab b. Rajasthan c. Himachal Pradesh Northern region 2.Eastern Region a. Bihar b. Jharkhand c. Orissa d. West Bengal e. Chattisgarh Eastern region %change 4 9 7 8 0 29 5 10 8 9 10 Central Region All India 8 10 State 4.Western Region a. Gujarat b. Maharashtra Western Region 5.Central Region a. Uttar Pradesh b. Madhya Pradesh 5 9 %change 12 6 10
YEAR 2005-06 Region NORTH SOUTH EAST WEST CENTRE TOTAL Installed Capacity(in MT) 29.31 50.96 23.38 28.94 25 157.59 Production (in MTS) 29.67 44.88 20.05 24.93 22.28 141.81 % Share Of
Production 21% 30% 15% 19% 15% 100%
YEAR 2006-07 REGION INSTALLED CAPACITY NORTH SOUTH EAST WEST CENTRE TOTAL (in MT) 32.60 53.48 25.19 28.94 25.50 165.71 PRODUCTION (IN MTS) 32.10 49.81 22.07 27.30 24.04 155.32 %SHARE PRODUCTION 21.00 32.00 14.00 18.00 15.00 100 OF
NORTH: Punjab, Delhi, Haryana, Himachal Pradesh, Rajasthan, Chandigarh, J&K, West U.P. & Northern Parts of M.P. WEST: Maharashtra, & Gujarat SOUTH: Tamil Nadu, A.P., Karnataka, & Kerala EAST: Bihar, Orrisa, W.B., Assam, Meghalya, Chattisgarh, & Jharkhand CENTRAL: U.P., M.P.
% Growth in Cement Production
35 30 25 State 20 15 10 5 0 %change State %change
CHAPTER 1 INTRODUCTION
COMPANY PROFILE Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having Nine Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-day affairs. The company is managed by well qualified professionals with broad vision who are committed to maintain high standards of quality & leadership to serve the customers to their fullest satisfaction.The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing & finance & general management.
Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the Delhi-Ahmedabad highway. Amongst the plants in the state it is nearest from its marketing centers. Bangur Cement Unit (III, IV, V, VI & VII) is located at RAS, 28 Km from Beawar in Pali Distt. 9
We are coming up with Grinding Units at Suratgarh & Laksar (Distt. Haridwar, Uttrakhand). Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi.
Philosophy Let noble thoughts come to us from all over the world. –Rigveda
Business Ethics • • • • • Enforce good corporate governance practice. Inculcate integrity of conduct. Ensure transparency and credibility in communication. Remain accountable to all stakeholders. Encourage socially responsible behaviour..
Polices of Shree cement ltd.
Shree Cement supplemented its attractively low capital investment per tonne with one of the lowest manufacturing costs in the Indian cement industry. Starting with 0.6 million tons per annum of cement in 1985, the capacity was upgraded to 0.76 million tons in 1993. Second plant with installed capacity of 1.24 million tons per annum was commissioned in 1997, in record time of 18 months, raising total capacity to 2.0 MTPA. Even during recession in the industry, it was possible for it to enhance capacity further to 2.6 MTPA due to its strategic location and better brand image and is the largest single location plant in North India. The companys installed capacity accounted for 15 percent of Rajasthans total capacity in 2002-03 and 2.5 percent of Indians production in 2002-03. Cement production increased 3.42% from 2.747 million tons in 2002-03 to 2.841 million tonnes in 2003-04.
At the end of year 2008, Shree Cement Limited has entered the big league with current overall production capacity of 9.1 million tons. Shree Cement has evolved into one of Indias top ten cement makers with 18% market share in North India. Believing in the theory of self-sufficiency, Shree Cement Limited has installed its own Captive Power Plants at Beawar & Ras with a combined capacity of 119.50 MW. Once again, the low cost was the result of scores of initiatives across all levels within the company. Some resulting in small savings. Some in big. But each primarily driven by the belief that what was being done could be done better. Success Driver PEOPLE AS PROGRESS DRIVERS Shree believes that what is present in the minds of people is more valuable than the assets on the shop floor. All the company’s initiatives are directed to leverage the value of this growing asset. TEAMWORK Shree leverages effective team working to generate a sustainable improvement. LEADERS AT EVERY LEVEL Shree believes in creating leaders -not just at the organizational apex but at Every level, resulting in a strong sense of emotional ownership. CULTURE OF INNOVATION Shree believes that what is good can be made better -across the organization.
CUSTOMER FOCUS Shree is committed to deliver a superior quality of cement at attractively affordable prices.
SHAREHOLDER VALUE Shree is focused on the enhancement of value through a number of strategic and business initiatives that generate larger and a better quality of earnings. COMMUNITY AND ENVIRONMENT Shree’s community concern extends from direct assistance to safe and dependable operations for its members and the environment. Marketing Over the last few years, there has been a remarkable shift at Shree: from a Production-centric to a customer-obsessed organisation. • Challenges • Marketing presence • Markets • Market States
Markets classification Markets Primary Secondary Tertiary States Rajasthan Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal Gujarat, M.P. and Central U.P.
Challenges Due to the nature of the product - bulky, low priced - it became increasingly difficult to sell the product across a large territory. Besides, higher realisations in distant territories did not mean that the gain would accrue to the company since the incremental freight would neutralise the price advantage. As a result, it became important to arrive at a median between realisations and distribution costs and earn a comfortable margin. Marketing presence Over the last three years, Shree considerably strengthened its marketing presence. Since the company is based in Rajasthan, the state is the company’s principal market. Rajasthan is India’s largest cement producing state and Shree’s is the largest single location plant in northern India. The company’s northern-most positioning within Rajasthan makes it the closest among all Rajasthan manufacturers to Delhi, Haryana and some parts of Punjab, a significant cost edge. The company enjoys a market share of about 11 per cent in north India. MARKETS
Each cement manufacturer has a primary and secondary market. The former is one, which is the closest to the production centre where it fetches the best realisations while the latter is usually at a distance where realisations are lower.
In an industry where consumer loyalties change every rupee, Shree’s biggest achievement was that it built an emotional bond with its stakeholders. This transpired as a result of a number of initiatives:
The company produced a 53 grade product at a 43 grade price - better quality at a lower price. The company positioned its brands around longer life (durability), emphasising product longevity. The company innovated the launch of corrosion resistant grade like Red Oxide, winning innovations in a staid industry. Shree put its products deeper within most territories. Besides, it invested in logistics to reach retail shelves faster. As a result, Shree’s products moved quicker off retail shelves: every 0.65 seconds in 2001-02 and every 0.58 seconds in 2002-03. As the company’s primary customers - dealers - accelerated the rotation of their working capital, they maximised their return on capital, ensuring brand loyalty.
Shree accelerated footholds through a stronger Rs 3 cr advertising campaign for its Red Oxide brand in the regional print and electronic medium in 2002-03. Shree educated its principal users - the masons and architects.
Rajasthan Highlights, 2002-3
Increase in market share. Stronger dealer network. 17
• • • •
Deeper rural penetration. Increased promotional activity. Stronger customer service. The successful launch of Red Oxide cement.
Performance The company sold 8.07 lac tonnes in 2002-03 (4.39 lac tonnes in 2001-02 -nine months) in Rajasthan (29.60 per cent of the company’s sales). It sold 44,978 tonnes and 22,264 tonnes per month in the trade and non-trade segments respectively. Trade sales in 2002-03 were higher than the monthly average of 33,069 tonnes in 2001-02 Network Shree’s dealer network in Rajasthan increased to 371 in 2002-03 and translated into enhanced sales and Rajasthan protected realisations. The company appointed more field officers who serviced customers at regular intervals. Rajasthan had nine business centres, which provided timely services for better customer satisfaction. The company conducted meetings with masons to garner a better response. Competition Though competition was severe from Vikram, Ambuja, JK, BCW and Binani, Shree was able to enhance its market share within the state from 11.01 per cent in 2001-02 to 13.12 per cent in 2002-03. Even though low priced alternatives were available, Shree’s 53 grade sold more than the other grades. Dealer performance Shree serviced the dealer with regular service, prompt solutions and a better return on the invested capital. Sundry debtor declined to four days in thetrade segment and 32 days in the institutional segment. Old outstandings were recovered. Outlook The company expects to service the dealer network, enhance volumes, focus on unmapped areas and reduce costs. It expects to focus on Red Oxide brand through stronger awareness building. Delhi Highlights, 2002-3
• • • • •
Market share increased from 15 per cent in 2001-02 to 18 per cent in 2002-03 The dealer network was considerably strengthened Increased penetration Higher blended sales Increased brand promotional activities
Performance The company sold 5.35 lack tones in 2002-03 (3.59 lack tones in 2001-02 -nine months) in Delhi (20 per cent of the company’s sales) accounting for a 18 per cent share in the Delhi market. The trade segment accounted for 21,421 tonnes and the non-trade segment accounted for 23,128 tonnes per month. To create a distinction in the market, the launch of Red Oxide cement met with success. Trade sales increased by 15 per cent during the year. blended grade cement registered strong growth of 58 per cent during the year. Network Shree’s continued success in the Delhi market was on account of focused network development activities. The company has five business centres and registered a 60 per cent growth in the retail network. Apart from growing its network, the company has taken strong steps to strengthen customer service. It has created greater awareness with customers about the benefits of using Red Oxide cement over other cement grades. The timely disposal of customer problems is building a stronger service brand and raising the visibility of Shree’s products in the marketplace. Competition The demand in the Delhi market grew by one per cent during the year. This market is witnessing a higher growth in the blended segment. The key players in this market are Shree, Vikram, JK, Ambuja and Lakshmi cement. Dealer performance The focus on stronger dealer performance has helped generate higher sales. Additionally, the company focused strongly on its outstanding position in the market. This has led to a sharp fall in outstandings from Rs 11.05 cr on 31 March 2002 to Rs 8.96 cr on 31 March 2003. Currently the outstandings are under control and are collected within 3-5 days.
Outlook The Company is targeting higher sales through several initiatives including strengthening its dealer network. Moreover, Shree is focused on converting its OPC sales into Red Oxide cement. Additionally, a focus on superior logistics and lower transportation costs will help improve margins.
Punjab Highlights, 2002-3
• • • • •
Appointment of new and high potential stockiests A greater concentration towards the trade segment Enhanced the packaging and branding of the products Focused on improved advertisement and promotional activities The successful launch of Red Oxide cement
Performance The Company sold 3.68 lack tones in 2002-03 (2.82 lack tones in 2001-02 -nine months) in Punjab (15 per cent of the company’s sales) accounting for a seven per cent share in the state. It sold 24,247 tonnes and 6,433 tonnes per month in the trade and non-trade segments respectively. Trade sales in 2002-03 were higher than the monthly average of 17,885 tonnes in 2001-02. Network Shree’s retail network in Punjab grew by 75 per cent. The number of dealers rose to 187 in 2002-03. The company has opened five business centres in the state. The combination of more dealers and business centres translated to higher sales, especially in the trade segment. The focus on providing prompt service and paying customer visits to learn about their concerns and their quick redressal has helped enhance business opportunities.
Competition Key competition came from companies like Grasim and Ambuja. Grasim established a grinding unit that led to higher cement output resulting in a drop in prices. Shree was able to maintain its prices and its focus on Red Oxide cement opened greater revenue opportunities. Moreover, the focus on enhancing volumes helped Shree generate greater sales in its chosen markets. Higher volumes and stable prices resulted in greater profits.
Dealer performance The Company strengthened its customer relations both in the trade and non-trade segment. This combined with the delivery of superior product and service needs helped enhance the visibility of the Shree brand. This service also helped improve the outstanding position and monitor and recover old debts. Sundry debtor declined to seven days in the trade segment and 12 days in the institutional segment.
Outlook Shree is focused in increasing the sales in both the trade and non-trade segment. Moreover, the focus on strengthening the dealer network is also likely to spur volumes. The company is also planning to appoint another 100 quality stockiests to penetrate the markets better. Moreover, the focus on converting a higher percentage of OPC sales to Red Oxide will help enhance margins. Haryana Highlights, 2002-3 • • • The dealer network has been strengthened Higher advertising has resulted in creating a better demand-pull A higher concentration on blended cement
The closure of dumps in Hissar, Sirsa and Jind and the service from Narnaul has helped lower transportation and manpower costs.
Market witnessing a shift from OPC to blended cement
Performance The company sold 5.48 lac tonnes in 2002-03 (3.37 lac tonnes in 2001-02 -nine months) in Haryana (20.11 per cent of the company’s sales) accounting for a 16.04 per cent share in the Haryana market. The trade segment accounted for 23,189 tonnes and the non-trade segment accounted for 22,482 tonnes. To create a distinction in the market, the launch of Red Oxide cement met with success. Blended grade cement registered strong growth of 35 per cent during the year. Network Shree’s continued success in the Haryana market was on account of focused network development activities. The company has three business centres and registered a 25 per cent growth in the retail network. Apart from growing its network, the company has taken strong steps to strengthen customer service. The timely disposal of customer problems is building a stronger service brand and raising the visibility of Shree’s products in the marketplace.
Competition The Haryana market has grown by 5.90 per cent in 2002-03. This market is witnessing a higher growth in the blended segment. The key players in Haryana are Shree, Grasim, JK, Ambuja, Lakshmi, Binani and BCW. Shree was able to enhance its market share within the state from 13.95 per cent in 2001-02 to 16.04 per cent in 2002-03. Dealer performance 22
The focus on stronger dealer performance has helped generate higher sales. Additionally, the company focused strongly on its outstanding position in the market. Currently the outstandings are under control and are collected within 18 days.
Outlook The company is targeting higher sales through several initiatives including strengthening its dealer network. The company is also focused on increasing its trade sales to an average of 27,000 tonnes per month. Moreover, Shree is focused on converting its OPC sales into Red Oxide cement. A focus on quicker deliveries and the creation of a newly created logistic team will further help lower costs. Uttar Pradesh and Uttaranchal Highlights, 2002-3
• • • • •
A stronger focus on high realisation areas A higher coverage of non-represented marketing areas Launched Red Oxide cement Superior collection resulted in lower realisation cycle Vigorous promotional activities have been initiated to strengthen market share
Performance The company sold 4.25 lack tones in 2002-03 (3.37 lack tones in 2001-02 -nine months) in Uttar Pradesh and Uttaranchal (15.60 per cent of the company’s sales) accounting for a 20 per cent share in the Uttar Pradesh and Uttaranchal market. The trade segment accounted for 22,537 tonnes and the non-trade segment accounted for 12,895 tonnes per month.
Network Shree’s continued success in the Uttar Pradesh and Uttaranchal market was on account of focused network development activities. The company has 5 business centres and registered a 30 per cent growth in the retail network. Apart from growing its network, the company has taken strong steps to strengthen customer service. The creation of greater awareness with customers about the benefits of using Red Oxide cement over other cement grades helped generate superior sales. Competition The Uttar Pradesh and Uttaranchal market has grown by 15.54 per cent in 2002-03. This market is witnessing a higher growth in the blended segment. The key players in Uttar Pradesh and Uttaranchal are Shree, ACC, Vikram, Ambuja, Lakshmi and Birla Uttam. Dealer performance The trade sale segment consolidated in 2002-03. The rural area network was consolidated in 2002-03. The Business Centre Operations were also strengthened, quality services to the customer were enhanced and higher technical services were provided. This created better awareness with customers and consequently resulted in higher sales. Outlook The future will depend on focused sales in higher realisation areas, increase in the retail network, deeper penetration in rural segments and a greater focus on exclusive sales points. Moreover, clearer defined marketing areas for dealers and a focus on profitable marketing will not only increase sales but also make it more profitable.
Innovation Innovative & Cost Conscious Management
• Leadership in the use of alternative waste fuel First cement plant in India to maximise substitution of imported coal by petcoke (petroleum industry waste) thereby increasing profitability and saving natural resources. • Initiatives for Global Warming reduction 24
Pioneered in the application of innovative Electro Static Precipitator technology in DG power generation to save fuel and combat pollution, and replaced HSD by LDO.
• Achieved unity power factor .. in electrical distribution system to reduce maximum demand, and transmission / distribution losses• Partial utilization of waste heat .. for 3 MW power generation. • Initiator in the use of petcoke for power generation in India 36MW captive thermal power plant under commissioning to generate quality power for the Plant, avoids transmission and distribution losses, and provides surplus power to Rajasthan. SAVINGS: Rs 496.46 million pa • Development of DD Cones In house development of Deduiling Cones for cyclones resulting in reduction in pressure drop, higher outputs and lower energy consumption. • Single Roller press for two Ball Mills Capacity enhancement & utilization of CM-2 Roller press for capacity increase and energy saving in CM-1 ---Energy Saving - 2.02 kwh / T cement
• Full fledged hospital, well equipped lab facilities including x-ray and pathological lab at colony premises. • Well equipped dispensary with compounder at mine site.
• Annual eye camps since last 8 years. In year 2003, 89 operations and more than 350 checkups were arranged. Spectacles were also provided to needy persons. • Enlistment of volunteers for blood donation as and when required in emergencies. • Conduct various immunisation & vaccination camps. • Donated children ward, water coolers, DG sets to A.K. Hospital Beawar. • Transportation facilities is provided in emergencies to near by villagers.
• To Safeguard Employees' Health The Company Organized De-Addiction Campaigns Related To The Consumption Of Tobacco Products, Smoking And Drinking. • Free From Plastic Bags. • Organized physically handicapped assistance camp in may 2002 inaugurated by hon'ble Chief Minister of Rajsathan shri Ashok Gehlot and distributed :• Hand Cart • Sewing Machine • Crutches • Tri-Cycle Safety
The company established the Occupational Health and Safety Assessment Series – OHSAS18001. The management system based on OHSAS-18001 demonstrates its responsibility to employees, clients, stockholders and society as a whole by ensuring that it reduces health and safety risks. This is coupled with benefits of an effective management system that will help the company reduce downtime and help form a highly motivated, efficient and productive workforce and create a healthy bottomline. This series has been developed to facilitate the integration of quality, environmental and occupational health and safety management. Under this series, the company expects to conduct extensive medical examinations for staff, workers and contractors once every year. It also intends to maintain a comprehensive database on medical examination records, health registers and monthly statistics of patients and their
health patterns. This will facilitate the company in mapping the fitness and health of each and every employee in the organisation. At Shree, a Safety Day is observed on the first day of each month where all safety issues are discussed extensively to prevent occurrence. Similarly, a Safety Day is observed on the second day of each month at the power plant.
At Shree, 4 March is observed as National Safety Day during which essay writing, poster designing and slogan competitions are conducted around the safety theme. Shree shop floor workers comply rigorously with a safety dress code, which comprises wearing complete personal protection equipment (helmet, eye shield, goggles, dust mask, ear plugs, fire-proof apron and boots) at all times. Shree’s plant is equipped with adequate fire-fighting equipment (extinguishers and a fire engine).
Emissions to Air Shree Cement believe that environment protection is the need of the hour and industrialization can be best enjoyed if pure air, clean water and all around greenery are maintained. "CLEAN & GREEN IS PROFITABLE" Shree is an ISO - 14001 company with well defined environment policy & documented environment strategy.
Right from the inception, pollution was kept under control by installing highly efficient bag filters and electrostatic precipitators.
Installation of DD cones in various cyclones to increase the collection efficiency of the cyclones. Improved ESP efficiency. Installation of high efficiency double rotary air locks at preheater feed, dust collectors, separator cyclone etc. The trend of Raw mill & Kiln ESP stack emission is given below.
New ProjectRAS CEMENT PROJECT
Shree Cement Limited is setting up a new green field Project at Village Ras, Tehsil Jaitaran, District Pali of Rajasthan. The capacity of the plant is 3000 Ton Per Day of clinker productionwith an approximate investment of about Rs. 300 Crores. The company has already engaged eminent Consultant for the same and all the major orders has been placed so as to achieve the ambitious target to commission the plant by August 2005 which is fifteen months from the date of first order placement i.e. May, 2004. The main plant & machineries would be supplied by KHD Humboldt Wedag AG - Germany & GEBR Pfeiffer AG - Germany.The plant will be based on the latest Technology available and maximum Automation would be done to keep the minimum manpower. The company is having sufficient mining lease at Ras to cater its production requirements for the upcoming 50 years. The Company is also expanding the power generation capacity of its Captive Power Plant to meet the power requirement of the upcoming plant.
A dedicated project team is already working round the clock on the Project to achieve the targeted competition by August 2005, and so far 25% of the work has been completed. As the project site is located in proximation to the potential market, it would provide a competitive edge logistically. Latest technology available is being adopted to achieve maximum automation to achieve optimum efficiency and manpower utilization.
Corporate Social Responsibility
A responsible & caring corporate citizen, Shree Cement strongly believes in the cohesive concept of Social development & cultural management. A part of its profits is utilized in meaningful welfare driven initiatives that make a qualitative difference to the lives of a weaker sections of the society. Carried out through the SCL Staff/Ladies Cooperate Society of Shree Cement efforts are made for community Initiative and Rural Development, which is spearheaded by Sh. M.K. Singhi. Shree Cement’s mission is to deliver value for its shareholders, customers, employees and society at large. At SCL we believe in :"AAH NO BHADRA : KRATAVO Let Noble Thoughts Come to Us from All over the World. YANTU VISHWATAH:" Rigveda
Relief Measures In Natural Calamities
• Running of waterhuts & water facility for cattles every year. • Amount Spent For Draught Affected Area Year 2003-Total Amount Spent Up To July 2003 - 5.85 Lac Masuda Sub-Division - Dist. Ajmer @ RS. 67000 / Month 4.69 Lac Jaitaran Sub -Division - Dist Pali
@ Rs. 4500/ Month since Jan 2003 @ Rs. 15000/ Month since April 2003 0.91 Lac Phed - Dist Pali @ Rs. 5000/ month since March 2003 0.25 Lac Monthly Financial Assistance in Ajmer & Pali Dist 1.20 Lac
• Amount Spent In Year 2002 - 6.39 Lac Masuda sub-DIVision - Dist. Ajmer @ RS. 67000 / MONTH 6.03 Lac Jaitaran Sub -Division - Dist Pali @ RS. 4500/ MONTH SINCE MAY 2002 0.36 Lac Year 2001 -Total Amount Spent - 0.37 Lac Jaitaran Sub -Division - Dist Pali - 0.37 Lac National Calamities » Gujarat Earth Quake (Rs 6.5 Lacs + Contribution In Kind And Also By Employees) » Orissa Cyclone (Rs 2.0 Lacs + Employees Contributing In Cash & Kind) » To Remember Martyrs Of Kargil War- Chief Minister's Relief Fund (Rs 6.5 Lacs + Employees Contribution) » Contribution towards Drought Relief to state Governors' fund (Rs 2 Lacs) Sustaining Animal Life
• Rs 5.00 lacs to Ajmer Citizen Council for cow rearing at Ajmer. • Rs 1.00 lacs per month to Gram Panchayat ,Andheri Deori for cow rearing at village Andheri Deori from December-2002.
SPIRITUAL UPLIFTMENT • A magnificent temple of shree hanuman ji with beautiful surroundings of several small hillocks, garden and musical fountain has been constructed. • Construction Of Shree Rangnathjee Temple At Pushkar. • Organized Bhajan Sandhya Of Renowned Singer Anuradha Paudwal At Shree Cement On The Ocassion Of Consecration Of Shri Sankat Mochan Hanuman Temple-2000. • Organized Bhajan Sandhya Of Renowned Singer Anop Jalota At Shree Cement On The Ocassion Of 1st Anniversary Of Shri Sankat Mochan Hanuman Temple And Pushkar Fair -2001. • Organized classical dance programme by famous film actress Hema Malini on the 2nd anniversary of shri Sankat Mochan hanuman temple.-2002. • Organized Classical Dance Programme By Padam Vibhushan Sonal Man Singh On The 3rd anniversary Of Shri Sankat Mochan Hanuman Temple-2003. • Ram katha and Bhagwat katha by Shri Laxaman Sharanji Maharaj. • Program on harmonious relationship & happiness in family.by Dr. B.C. Prajapti. • Celebration Of Festivals. 31
• Extending financial assitance for organising village fair in the village Andheri Deori, Jhak, Jhunjharo-Ka-Badia & Lulwa on the occasion of Teja Mela every year. • Arranging camp tea, meals, first aid etc. for pilgrims going to Ram Deora fair every year.
• Running the school at Bangur Nagar. • Provided Cement For Maintance of School Building in the village Kheempura & Rupaheli in the Year 1999 & 2000. • Constructed school in the village Jhunjharo ka Badia in the year 1998. • Extended financial assitance for construction of 3 class room, one hall & varandah in the middle school of Andheri Deori in the year 1996 under Apana Gaon-Apana Kam scheme. • Extended financial assitance for distribution of sweets in the 15 nearby school on the occasion of national days on Independence & Republic day. - every year. • Extended financial assistance for electricity work in the school of Andheri Deori in the year 1997. • Felicitated meritorious students who achieved position in merit list of Sr.Secondary examination conducted by Board Of Secondary Education Rajasthan in the year 2002. Sports& Leisures • The company has good sports ground. Every year on the occasion of National days sports for company employees and nearby villagers are organised in order to develop sports spirit.
• The winners are awarded with attractive prizes and the participants are also served meals. •Assisted in organizing inter - state day-night cricket tournament at Beawar wherein cricket teams from 9 states participated. • Cultural programmes arranged
TITLE OF THE STUDY
Shree Cement Limited - Human Resource Planning. 2.2 OBJECTIVE OF THE STUDY
To understand the process of Human Resource Planning of Shree Cement Limited. 2.3-SIGNIFICANCE OF RESERCH Every research is conducted to fulfill certain objectives and these objectives fulfill some purpose and are of significance for further researches. The research is significance toThe Company: The company taken is Shree Cement Limited which is an established brand in manufacturing cement. The purpose of the research is to identify existing Human Resource Planning process
of the company. This will help the company in determining and formulating its strategy regarding existing loop holes in the process. The researcher: This research provided an opportunity to get a first hand experience in the Human Resource Planning process of the company.
2.4-RESEARCH METHODOLOGY The methodology used by the researcher to complete this project is as followsDefining the research objectives: The research objectives need to be clearly defined in the order so as to make research useful. Here the objectives of the study areTo study and understand the process of Human Resource Planning of the company. Developing the research plan: The plan used by the researcher is the most efficient plan to gather the needed information. It included data source, research instrument, sampling plan and contact method. Data Source: Data source was primary, which include employees of the company and secondary source i.e., through various modules of the company. Sampling Plan: Sampling plan consisted of sampling unit, sample size, sampling procedure. Sampling Unit – It tells who is to be surveyed. Here the employees of the company were included..
Sample size – It describes how many people should be surveyed. The sample size of 50 employees was taken. Sampling Procedure – It describes how the respondents should be chosen. For this convenience sampling was done by the researcher. Contact Method: Once the sampling plan is determined, the researcher has to decide how the respondents should be contacted.
Analyzing the information: One of the most important step in the process of research is to extract pertinent findings from the collected data. The researcher tabulated the data and then applied all statistical and graphical methods for presenting the same. Present the findings: The last step in research process is to present the findings to the relevant parties. The conclusion and recommendation on the basis of data collected is presented in a systematic manner. 2.5 –SCOPE OF RESEARCH The study was conducted in Shree Cement Limited. The study was conducted in the month of June – July 2009.
CHAPTER 3 FACTS AND FINDINGS
• Jo soche woh pave Shree has invested wisely in its people assets over the last few years to sustain a culture of excellence through the following initiatives: • • The company incentives ownership through the ‘Jo soche woh paave’ scheme. The company trained and multi-skilled so that members could deepen and extend their
competencies across the house keeping, maintenance, risk management, team building and environment, health and safety functions.Jo soche woh paave also deals with some really simple solutions. Like the inevitable 8.30 am traffic jam of employee vehicles - 60 cars and 300 two-wheelers - at the factory gate. This posed an accident risk. I suggested that another gate be opened for car entry only. This suggestion was accepted and the result is a safer factory and a bigger time saving today." - Girish Singhal (Dy. Manager, Taxation)
• Creating leaders at every level Shree Cement emphasises that creating leaders not just at the organisational apex but at every level results in strong sense of emotional ownership. Thus the employees are delegated with responsibility and authority to adopt one Electric motor and related equipment for keeping watch and care resulting in energy conservation, thus generating multiple CEO's in the Energy Management System. • Recognition and reward scheme The management believes in the self-actualization of its employees by injecting the concept of Human resource Development in all its policies and strategies. By recognition and reward the employees are motivated to give their best in the interests of the organization in particular and for the society in general. So many schemes of recognition and rewards are given to boost the morale and motivate the employees. According to Managing Director of the company, morale management is considered to be more challenging than material management. According to him it is important to keep walking around and congratulating the teams for their small victories. Efforts and their success stories 37
are disclosed to all in special functions so that other employees may take inspiration from them. Employees are rewarded for doing exemplary work in the field of reducing/ eliminating breakdown, in-house development, better house keeping, and reduction in raw material, fuel, power and wastage. Cash awards and Certificates of honour have been given in a function. For example a scrapper chain of reclaimer II is to be replaced which takes 80 hours. The team completed this task in minimum possible time with the result that the reclaimer was put into operation in just 36.5 hours. The team was rewarded with a cash amount of Rs. 11,000/- and certificate of honour.
• Nomination to Vishwakarma Rashtriya Puraskar The objective of Vishwakarma Rashtriya Puraskar is to recognise the outstanding contributions made by a worker or a group of workers in an organisation for exemplary work related to improved productivity, occupational safety and health, environment and working conditions as well as safety and quality of product. It is our endeavor to encourage the workers to participate in this puraskar. The innovative work done on:• • •
Removal of hanger bearing from ESP Hopper Screw Conveyors. Replacement of Cooler gas portion. Replacements of castable bull nosed top to refractory brick arch were selected for this puraskar.
• Multiskill development training programme
In 2001-02, the company started the concept of multi skilling to optimise manpower, enhance skill sets and to facilitate cross-functional development. Unlike other organisations who introduce multi-skilling for high fliers, the company started this concept first for its workers. Reason: The company faced a problem of surplus workers. Other organizations would have resorted to retrenching and laying off, but this is not Shree's philosophy. Shree optimally utilized its surplus strength by developing worker skills in other technical process. This helped the company build in a redundancy factor wherein at any given point there was always a skilled set of people for any function. The company reduced overtime through efficient manpower utilisation, organized smooth functioning of the production cycle, increased job security leading to a greater sense of belonging and strengthened industrial relations. As a result the company did not lose a single day's work due to strikes or lockouts. Employees were deputed for Multiskill training of fitter trade in different Industrial Training Centers.
Following the success of multi-skilling with workers, the company introduced this concept with staff members. The objective was to enhance competencies and to enable managers understand how an initiative taken by their department could affect the productivity and performance of another department. This broadened the outlook of staff members, making them think like business managers. • THE COMPANY’S PEOPLE ACHIEVEMENTS The company’s people achievements are reflected in the following numbers Manpower training hours/Year Year 99-00 00-02 01-02 Training 4.92 5.28 8.33 hours
Labour cost Year 99-00 Labour 63.49 cost /tonne
Manpower productivity Year 99-00 Productivity 2011 (MT/person)
HR training 2001-02 Details Inhouse Number of 283 32 55 1232 315 4904 External Total
2002-03 Inhouse 527 8794 29 48 1200 556 8842 External Total
Change (%) Over 2001(%) 76.5 80.3
Programmes Number of 4849 participants Man hours Average 8804 8.33
10036 14447 12.00
15647 55.91 44.05 40
Executive grade people skill Qualification MBA CA/CS/ICWA ME/MBBS/MSW Post Graduates Technical Diploma Management Diploma Graduates ITI Inter/SSE Below SSE
% 5.67 2.91 0.58 12.21 19.77 8.43 31.25 9.30 7.85 2.03
Rich Shree experience A stronger sense of loyalty is reflected in an increasing Shree experience and a stronger accumulation of intellectual capital. Year Shree experience Average 1997 3143 5.60 1998 3714 6.19 1999 4141 6.79 2000 4581 7.52 2001 5108 7.94 2002 5588 8.22
Lower attrition Year Numbers 1997-98 54 1998-99 37 1999-00 34 2000-01 26 2001-02 31 2002-03 23
% 9.68 6.17 5.57 4.27 4.82 3.40
• • • • •
Awards in 2007 - 08 Awards in 2006 - 07 Awards in 2005 - 06 Awards in 2004 - 05 Awards in 2003 - 04
3.2 HUMAN RESOURCE PLANNING
Human resource planning (HRP) is a way of assisting the best deployment of human resources and can help organisation to:
• • • • • •
assess future recruitment needs anticipate and possibly avoid redundancies formulate training programmes develop a promotion and career development policy including succession planning keep staff costs to a minimum while permitting salaries to be competitive assess future premises requirements.
A process which anticipates and maps out the consequences of business strategy on an organization's human resources. This is reflected in planning of skill and competence needs as well as total headcounts.For resourcing strategies to be implemented they must be translated into practical action. The strategic process can be organized logically - for example, following the decision sequence shown on page 351 of Human Resource Management in a Business Context. For these decisions to be taken, information must be obtained, consequences gauged, political soundings taken and preferences assessed. It is clear that many of these decisions are fundamental to an organization. If the implications are major, strategic decisions are taken at the centre of the businessRearch. The role of the human resource function is two-fold: 1. To participate in the decision process by providing information and opinion on each option, including: • • • • • • • redundancy or recruitment costs consequences on morale redeployment/outplacement opportunities availability of skilled staff within the organization availability of suitable people in the job market time constraints development/training needs/schedules
This forms part of the information collated from the organization as a whole 2. To support line managers dealing with the people consequences of implementing the decision. Information already gathered provides the basis for a human resource plan.
People as numbers
The manpower planning approach which addresses questions such as: • • • • • How many staff do we have/need? How are they distributed? What is the age profile? How many will leave in each of the next five years? How many will be required in one, five, ten years?
Human Resource Information Systems are invaluable in answering these questions. Forecasting methods Human resource planners have a choice of techniques open to them, including: extrapolation (of past trends); projected production/sales; employee analysis; scenario building.
Employee turnover Turnover covers the whole input-output process from recruitment to dismissal or retirement and takes the consequences of promotion and transfer into account. 'Soft' planning HRM implies that planning has to go beyond the 'numbers game' into the softer areas of employee attitudes, behaviour and commitment. These aspects are critical to HR development, performance assessment and the management of change. Human Resource Planning involves HRP can be divided into three main stages: 1. Forecasting labour requirements by examining:
• • • • • •
the organisation’s objectives future plans for marketing, production, finance and reorganization changes in working practices changes in productivity the extent of temporary and sub-contract work Seasonal variations.
2. Assessing labour supply by:
analyzing personnel records Examining external factors such as the economy, unemployment, population changes, competition from other firms in the area and the numbers of school and college leavers available.
3. Matching the available supply against the forecast demand by:
Planned recruitment, selection, promotion and staff development.
How far in advance should labour be planned? The period will vary according to the size and type of organisation. It may be necessary to operate more than one plan; for example:
• • •
a five-year strategic plan a three-year operating plan a six-monthly detailed plan.
HRP is not an exact science and plans will need updating in the light of changed circumstances. Working through an HR planning process allows you to analyze your demand and supply of human resources and develop the appropriate strategies aimed at filling projected gaps.
The HR planning process is illustrated in the following diagram.
Succession management is a key strategy that you will probably want to implement as a result of your HR planning process. It addresses many of the issues, such as:
• • • • •
an aging workforce increasing retirement rates tight labor market limited competitiveness, and fast-paced changes in work.
By implementing a succession management program that is transparent and equitable you will be creating an environment for people to develop their skills in preparation for a range of future possibilities. This results in a workplace that will be well positioned to face whatever lies ahead. The following is the corporate succession management model.
HUMAN RESOURCE POLICY of Shree Cement
Human Resource Planning helps to assess future recruitment needs, anticipate and possibly avoid redundancies Accordingly formulate training programs, develop a promotion and career development policy including succession planning It also helps to keep staff costs to a minimum while permitting salaries to be competitive And finally it assesses future premises requirements.
CHAPTER V RECOMMENDATIONS
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Understand the ever-changing role of human resources Translate a new role into identifying “value-added” services for the organization Use a human resource impact model Develop a keen knowledge of the strategic planning process Conduct a gap analysis on your current human resource processes Build a human resources strategic business plan Assess and measure human resource efforts for strategic linkage of all human resource processes to organizational strategy
1. www.shreecementltd.com 2. shree manthan ( magazine) 3. Human resource management- V.S. Rao 4. Human Resource Management – Gary Dessler