Human Resource Management in Public

Sector Enterprises: A Case Study of

Bharat Heavy Electricals Limited

ABSTRACT
THESIS SUBMITTED FOR THE DEGREE OF

Supervisor Submitted by

Associate Professor (Retd.) Research Scholar

D.A.V. P.G. College, D.A.V. P.G. College,
Varanasi Varanasi

FACULTY OF COMMERCE
BANARAS HINDU UNIVERSITY
VARANASI-221005,
INDIA
Enrolment No. 313615 2019
 ABSTRACT

INTRODUCTION

Changing economic scenario and powerful competitions are causing Indian public
sector to go through the radical changes in the approaches to business. In the era of
this rapidly increasing competition, it has been imperative for every department to
develop long-term, healthy and strong bonding with the employees. The long-term
bonding with the employees is mostly dependent primarily to the superior quality of
facilities being delivered to the internal customers i.e., employees 1; as they are
playing a major role in the process of service being delivered to external customers.
Thus, an intensive study of Human Resource Management (HRM) in Public Sector
Enterprises (PSEs) is the demand of the time.

The extent of success or failure of Human Resource Management in an organization

depends on the suitableness of HR policies formulated for the organization. HR
policies are the bedrock to achieve the organizational goal as well as fulfillment of
Vision and Mission of the organization. As far as Indian Public Sector is concerned,
the achievement of the PSEs in the changing economic scenario and increasing
competition when every organization has more or less equal access to all the factors
of production depends on the effectiveness and continuous development of their
human resources.

Today, HR Management has developed into a major function with a broad spectrum
of activates concerned with human resources of the organization. Taking into account
the rapid expansion of the public sector in the country, several experiments are being
made in the field of HR Management. But even today, the Government has not been
able to decide a clear out policy on managerial personnel for public sector
undertakings. The personnel activities in BHEL are performed both at the corporate
and unit level. It is based on centralized policy making and decentralized
administration of Human Resource Management. The computer are being

1. A. F. Stoner, R. Edward Freeman, Daniel R. Gilbert JR, Management, Pearson Education (Singapore) Pvt. Ltd,
Indian Branch, New Delhi, 2004, p. 375
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increasingly made use of in personnel activities of the enterprise both at corporate and
unit level.

OBJECTIVE OF THE RESEARCH

This is an exploratory research. This research aims to mainly elaborate the various
aspects of Human Resource Management in current scenario having focus on various
Human Resource Policies formulated for Public Sector Enterprises. Observing to
what extent these policies are being implemented in Bharat Heavy Electricals
Limited.

Apart from these, this study tries to appraise the various positive and negative impact
of globalization on Human Resource Management in PSEs in general and in Bharat
Heavy Electricals Limited in particular.

RESEARCH METHODOLOGY

The present study is entirely based on secondary data. The data has been collected
mainly through various Reports of Governments like Public Enterprises Survey,
Annual Reports of BHEL, and Annual Reports of NIPFP, Economic Survey etc.
Some reputed books, journals, etc. have also been referenced for the completion of
this research work.

Simple statistical tools such as simple average, percentage, ratio etc. have been used
in the present research work.

SIGNIFICANCE OF THE STUDY

The topic of the present research suggests that this is the need of the time to have an
extensive study on HRM in PSEs. In this era of changing economic scenario and
increasing competition, the success of any organization depends on its effective and
efficient HR management. Now it is felt that all other factors of production can be
utilized to their maximum only in the presence of strong and effective HR system
within the organization.

LIMITATION OF THE STUDY

The study is totally based on secondary data therefore, the correctness and reliability
of the study depend on the correctness and reliability of the data used. The topic of the

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study covers a very broad aspect of HRM and PSEs. Efforts have been made to cover
maximum aspects of HRM and PSEs But taking into consideration the time limit of
the research, length of thesis and practicality of the study, some of the aspects might
be uncovered in the study.

CHAPTER PLAN

The overall study has been divided into six chapters which are as follows:

Chapter 1 Introduction

Chapter 2 Review of Literatures

Chapter 3 Human Resource Management in Public Sector Enterprises

Chapter 4 Human Resource Management in Bharat Heavy Electricals Limited

Chapter 5 Impact of Globalisation on Human Resource Management in Bharat

Heavy Electricals Limited

Chapter 6 Conclusion and Suggestions

The first chapter deals with the conceptual and theoretical framework of HRM. In this
chapter, an overview of HRM and public sector enterprises in India has been
provided. This chapter says that with the advent of technology and the passage of
time, academicians, researchers, and the organizations have recognized the
importance of' human resource. In today's world, this resource of production has
occupied the pivotal significance across the globe. The development and growth of
any organization and/or a nation is linked with the development of its people. Apart
from this, this chapter describes the Objectives, Methodology, Significance and
Limitations of the present research.

The second chapter deals the review of literature. The literature related to the HRM
practices in different industries, on different aspects with different perspectives, in
order to understand the work patterns, to clarify the concept and to gauge the research
gap for the study has been studies. There are a number of research studies on the
different aspects of HRM practices with special reference to BHEL are already
present in various reputed libraries as well as on inflibnet. It is nevertheless found that

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there is a still dearth of research studies mainly focusing on the HRM practices in
BHEL in post liberalization and globalization era.

The third chapter relates to the Human Resource Management practices in Public
Sector Enterprises. This chapter comprises of growth and development story of the
public sector enterprises in India, various measure adopted by PSEs for successful
implementation of HRM practices within the enterprises of public sector. Public
sector enterprises have been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for
rapid growth and modernization of various sectors of the economy. It has become
especially important in recent years because of enormous growth of information
technology and its significant potential for the impact on the rest of the economy .The
public sector undertaking which has the multiplier effect on the economy, has a vital
role to play in economy by contributing to the increased efficiency. Public sector
undertakings in India have registered a phenomenal growth during last few years,
propelled largely by the unprecedented growth which is not only beneficial for the
sector but also has a multiplier effects over the entire economy. Consequently, this
chapter outlines the development and growth outlook of the public sector
undertakings in India simultaneously various aspect of HRM related to Public Sector
Enterprises.

The fourth chapter deals with the profile and case study of public sector enterprises-
BHEL. In this chapter main focuses has been given on the missions, visions and
objectives of the selected companies in public sector undertaking i.e., BHEL. To
comprise the present study we have taken a case study of Bharat Heavy Electricals
Limited, a leading and second in profit making Maharatna of Public Enterprises. This
chapter consists of Structure of HR, Manpower Planning, Recruitment, Promotion,
Training & Development, Industrial Relations, Industrial Safety, Grievance
Mechanism, Unionism etc. in BHEL.

Apart from the above, this chapter depicts various data related to HR such as Year
wise number of Employees, Representation of Scheduled Castes, Scheduled Tribes
and Other Backward Castes Employees, Year wise number of total vacancies and
vacancies filled by SCs, STs and OBCs., Capacity Utilization, Number of Employees

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and Houses, Ranking of CPSEs in terms of Employment, Year wise Township

Maintenance Expenditures.

Chapter fifth mainly deals with the differences in the phases of HRM before and after
globalization, Increasing Importance of HRM, Development of HRM as Profession,
Functional Scope of HR Management Professionals in Globalized era, Dynamics of
Challenges in a global Environment before HR Management, Development of Ethical
Consideration in HRM.

Chapter six consists of conclusions and suggestions of the entire research. Some of
the conclusions and suggestion are as follows:

CONCLUSIONS

 The main objective of the board regarding HR in BHEL is:

 Attract, retain, develop and remain effective and motivate human resource
with the skills and competencies to meet organizational need in tune with
changing business profiles and technological requirement.

 Maintain good industrial relations with the high level of employee for better
participation, productivity and quality of the work.

 To propagate support and implement the principles of “Global Compact”.

 There is a wide range of issues that are impacting on the effective

implementation of healthy HRM practices in Public Sector Enterprises. Some
of these issues relate to the policy context, others to the provision of
employees.

 The national and international contexts have changed and the public sector
employers to develop and improve on the available expertise to attract, recruit
and select employees with a view to promoting the longer term viability of the
economy and of individual organizations.

 Indian public sector playing a key role in shaping the path of economic
development for country. Even today, many sectors are dominated by public
sector.

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 In order to raise resources and encourage wider public participation, a part of

the government’s shareholding in the public sector would be offered to mutual
funds, financial institutions, general public and workers.

SUGGESTIONS

 Organizations need to adopt a strategy that could improve the employee's

quality of work life to satisfy both the organizational objectives and employee
needs.

 The employees need to be treated more politely and in a friendly manner

which could inculcate in them a sense of responsibility and trust.

 To implement the HRM policies effectively in either of the organization it is

the responsibility of the management to focus on areas like welfare measures,
training and development, performance appraisal and quality of work life.

 In public sector undertakings, the management should emphasize on the

present personnel policies and include all those matters which affect the
employees and govern their services, such us promotions, trainings,
perquisites and allowances, welfare measures, etc.

 The managerial autonomy of public enterprises should be preserved through

greater delegation of power and by reducing the number of civil servants and
bureaucrats on their boards of directors.



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