Institute of Management Technology

2014-2016

Human Resource Management

Project Report

On

HR Process and Policy Study of

Krishak Bharati Cooperative Limited (KRIBHCO)

Submitted To – Submitted By –

Prof.: Dr. Arun Prasad Loukik Huilgolkar 140201070Mayank Sitlani 140201077Nutush Mishra 140201088Prashast Singh 140201098Pratyush Sahu 140201102Rajat Mehta 140201107

INTRODUCTION

Krishak Bharati Cooperative Limited (KRIBHCO) is an Indian cooperative society, which

manufactures fertilizer, mainly urea. It registered under the Multi-State Cooperative Societies

Act 2002, and The Government of India through the Department of Fertilizers was a member

of KRIBHCO but its equity holding was reduced to NIL on 4th July 2013 under the

provisions of the MSCS Act 2002. KRIBHCO is not owned nor controlled nor financed by

the Government of India / Any State Governments. Its main plant is located in Surat, Gujarat.

Oil & gas findings in Bombay High and South Basin triggered the birth of eight new

generation fertilizer plants to fulfil the ever-growing food needs of the country. KRIBHCO

was among the first two projects in the first phase. KRIBHCO manufactures urea, ammonia

Argon, bio-fertilizers, hybrid seeds & heavy water at Hazira in the State of Gujarat, on the

bank of the Tapti River near Kawas village, 15 km from Surat and 20 km from the Surat

Railway Station, on the Surat-Hazira State Highway.

Hazira Fertiliser Complex has 2 Streams of Ammonia Plant and 4 Streams of Urea Plant.

Annual re-assessed capacity for Urea and Ammonia is 1.729 million MT and 1.003 million

MT respectively. Production of Bio fertilizer plant commenced plant of 100 MT per year

capacity was commissioned at Hazira in 1995. An additional capacity of 150 MT was added

to that plant in 1998. Subsequently, two more Bio-fertilizer plants, each of 100 MT capacity,

were installed at Varanasi, Uttar Pradesh and Lanja, Maharashtra in 2003 and 2004

respectively.

Dr. Chandrapal Singh Yadav has been chairman of KRIBHCO since 1996 under his

leadership KRIBHCO achieved the turnover of Rs. 2400 crore in the financial year 2007-08.

Sh. Vaghjibhai Rugnathbhai Patel took charge as Chairman of KRIBHCO and Dr.

Chandrapal Singh Yadav is acting as Vice-Chairman at present. Shri N.S.Rao is the

Managing Director.

ORGANISATIONAL STUCTURE

The Executive Committee of the Board of Directors shall be responsible for the efficient

management of the Society's various establishments / projects. It shall have the following

duties and responsibilities, subject to the overall control and authority of the Board of

Directors;

To examine and recommend to the Board the budget estimates;

To approve all investment proposals of capital nature up to the limit of Rs. 15 crores

To create posts in Grades 'F1 to D'

To authorise execution of documents for and on behalf of the Society and authorise

the use of common seal of the society as provided for in Bye-Laws

To grant loan to employees where the amount and repayment terms are not covered

under the Service Rules of the Society to approve all revenue expenses and purchases

which exceed the powers vested in the Managing Director under the Bye-laws

To appoint Trustee or Trustees, Attorney or Attorneys, Agent or Agents for the

business of KRIBHCO

To refer any claims or demands by or against KRIBHCO for arbitration, perform

awards and to negotiate the compromise, up to an amount of Rs. 50 lakhs

To raise funds for the business of KRIBHCO and determine the terms and conditions

thereof and charge the assets and properties etc., of KRIBHCO as security for loans

that may be raised by it provided such powers shall be exercisable with the prior

approval of the Government of India, excepting matters related to short-term advances

for working capital;

Subject to the approval of the Board, to frame and/or approve regulations, rules,

manuals for the conduct, supervision and management of the business and affairs of

KRIBHCO.

The Executive Committee shall have such other additional powers and functions as

may be assigned to it, from time to time, by the Board of Directors for the efficient

management of the Society's various establishments/Projects.

RECRUITMENT

Organisations are dynamic, organic on-going systems consisting of many individuals. A

successful Management focuses on the individual and then attempts to relate the individual to

the group and different groups to the organisation. Individuals join organisation to fulfil their

goal and aspirations within the framework of the organisation. It is one of the major functions

of Management to dovetail the goals and aspirations of the individual into the goals of the

organisation. KRIBHCO in its formative stages inherited rules and practices from IFFCO.

Subsequently, a need was felt to streamline and standardise the existing practices and to

evolve R&P guidelines for KRIBHCO. Salient features of the guidelines are given below:-

APPLICABILITY

o Recruitment and Promotion guidelines will be applicable in case of all

recruitments and promotions up to posts in grade E and below.

o As far as recruitment and promotion for posts in grades 'D' & above are concerned,

these will be treated as selection posts and Management shall follow such

specifications as it deems fit from time to time.

COMMENCEMENTo These guidelines shall come into force with effect from the date as may be

notified.

RECRUITMENT & PROMOTION AUTHORITIES

o All recruitments in grade H and above will be done at corporate level and

recruitment in grades below H will be done by respective units.

o All promotions from grade G1 to G and above will be done at corporate level and

promotions in grades up to G1 will be done by respective units. Promotion of

employees (Grade H to G1) in Finance, HRM and Secretarial Cadres which are

common to all units shall be done at corporate level.

RECRUITMENT PROCEDURE

o Vacant positions in organization chart shall not automatically be treated as

operative to be filled by recruitment or promotion. The positions shown in the

chart are an estimation keeping in view current and future requirements. These are

to be operated only when it becomes necessary to operate them with the approval

of Competent Authority. However, before undertaking any recruitment

activity/process, unit concerned shall obtain prior approval of MD for which

proposal shall be routed through ED (HR)/ Head of Corporate HR.

o Recruitment from outside agencies/ sources shall be made when, in the opinion of

the Management suitable persons are not available within the organization.

Recruitment from outside may also be done in case of additional requirement of

manpower due to expansion of organisation.

o For recruitment in various grades, Management shall follow such specifications as

may be prescribed from time to time. Departmental candidates may apply against

open advertisement provided the applicant otherwise meets the advertised

specifications, except for age limitation.

o Normally fresh blood will be injected In Organisation at the following posts

(grades) :

SOURCES OF RECRUITMENT:

o Direct Recruitment

o Promotion of Departmental candidates

o On deputation basis from Government or other organization

o On contract for a specified period

o From amongst the trainee/ apprentices of the Society

o Campus interviews as may be approved by the Competent Authority from time to

time.

o Employment Exchange as per provision of Employment Exchange (Compulsory

Notification of Vacancies) Act.

G2 Engg Graduate/ACA/AICWA/MBA

etc.

L/L1 FRs/ Accountants/ Assistants

L1 B.Sc./Diploma Holders in Engineering

M From amongst Matric +ITI candidates

o Existing employees who fulfil the prescribed specifications.

PROMOTIONS

All promotions shall be made subject to availability of vacancy in next higher grade,

suitability of employees and needs of the Society. Promotion shall always be on grade

to grade basis i.e. the next higher grade only and not to two higher grades. Employees

will be promoted from the lower grade to the next higher grade in their own cadres

only.

OPC will review cases of eligible employees once in a year during May. Only such

employees will be considered by the OPC who fulfil the laid down eligibility criteria

as on 30th April of the relevant year. The Promotion Order will take effect from 1st

May every year irrespective of the date when OPC recommendations are approved by

the Competent Authority.

An employee will not be eligible to be considered for promotion to next higher grade

unless he has completed the required period of service in his existing grade. In case he

remains on leave without pay/unauthorized absence for a period exceeding three

months in any year, that year shall not be counted for purpose of eligibility except in

cases of LWP on medical ground.

The seniority list of the employee (discipline/cadre wise) in grade 'H' and above will

be maintained by Corporate Personnel Deptt, and in grade 'H1'/ 'I' and below by local

units / division as per rules on the subject.

On the cut-off date i.e. on 30th April, the list of employees falling within the zone of

eligibility shall be prepared with reference to the specifications laid down. Out of the

zone of eligibility, a further list of zone of consideration shall be prepared on the basis

of ranking points as specified at 12.8.0, in the following ratio:

VACANCY NUMBER OF CANDIDATES

1 5

2 7

3 10

More than 3 Thrice the number of vacancies

The Departmental Promotion Committee will normally consist of internal manager’s

officers. External specialists, may be cooped, if so required, subject to approval in

writing, of the Competent Authority. The Competent Authority to constitute

Departmental Promotion Committee and to approve their recommendations, shall be

as under:-

POSTS IN GRADE AUTHORITY

A, B & B (NB) Board of Directors

C & D Managing Director

G1/G2 to E Director/ED with

report to MD

H/H1 & below SGM/GM with report to MD/Director/ED.

The DPC will consider the competence of the candidates for promotion in all grades

on the basis of academic qualification, relevant experience in and outside the Society,

on the job performance, performance in the interview, suitability for the higher

position and potential for future development.

The DPC while giving its recommendations shall base its results on evaluation made

as per following criteria and weightage in its recommendations :

a) Educational qualification - Maximum 10 marks

b) Experience in present grade - Maximum 20 marks (Minimum eligibility period :

12 marks, Minimum eligibility period + 1 year : 14 marks, Minimum eligibility

period +2 years: 17 marks, Minimum eligibility period +3 years & above:20

marks.)

c) Appraisal reports ( of years - Maximum- 40 marks. matching to eligibility period)

d) Interview - Maximum - 20 marks.

e) Potential for future development - Maximum 10 marks.

The maximum marks that can be obtained for educational qualification and experience

in present grade & appraisal report are 70. The qualifying percentage for preparing

zone of consideration shall be 70% of this fixed range i.e. 70 marks. However the

above criteria shall be followed wherever feasible.

TALENT MANAGEMENT

Productivity linked Incentive Scheme is in operation for the employees of KRIBHCO. The

performance related payment under the Scheme shall not exceed 5% of the distributable

profits of the Society for the relevant financial year. The Scheme consists of two components

namely Group Motivator and Individual Motivator. While the Group Motivator is aimed at

promoting team spirit and enhancing group performance, the individual Motivator would

promote a positive differentiation between the average performer and the star performer. This

will also encourage individual initiative, creativity and drive for excellence.

GROUP MOTIVATOR

Upton 4.5% of the Distributable Profit will be distributed amongst all the employees

as certain percentage of their standard salary for the relevant financial year depending

upon the Performance Index. This percentage may vary depending upon the amount

of distributable profit for the relevant financial year. The Productivity Linked

Incentive shall be payable to the employees based on the Composite Performance

Index (CPI) calculated by taking into account the various factors as listed herein

below. The Composite Performance Index (CPI) shall consist of 100 points which

will be allocated to various factors depending upon the weightage given to each

factor. For this purpose each Manufacturing Unit is considered as a profit centre.

Likewise, each State is considered as a marketing Profit Centre. The Composite

Performance Index (CPI) in respect of Manufacturing Unit/ Marketing Profit centre is

arrived at by adding up all the points awarded to the respective factors.

FACTOR MAXIMUM POINTS

Achievement of targeted production 50

Specific Energy Consumption 20

Safety, Health & Environment 10

Human Resource Index 10

Achievement of overall sale target 10

o Achievement of Targeted Production (ATP):

Points will be computed on ATP in the manner indicated below

ATP (%) POINTS

<80 Nil

At 80 10 (Minimum)

For the increase in ATP by each percentage point beyond 80%, a weightage of two

points shall be given subject to a maximum of 50 points.

o Specific Energy Consumption Index (SECI) :

Emphasis has been laid on material utilisation also so as to attain the optimum

production at a reasonable cost. Yields from primary raw materials in terms of

energy and consumption of other important utilities are considered relevant in

determining the specific Energy Consumption Index. The Specific Energy

Consumption Index (SECI) in respect of Hazira Unit will be obtained by using the

following formula:-

SECI (%) POINTS

<70 Nil

At 70 1 (Minimum)

For the increase in SECI by each percentage point beyond 70%, a weightage of

one point shall be given subject to a maximum of 20 points.

o Safety, Health & Environment :

Maximum 6 points may be earned when there is no loss of life and/or permanent

total disability during the relevant financial year due to any accident at workplace.

In the event of death due to accident at work place during the relevant financial

year, a reduction by one point for each loss of life will be effected. Similarly, a

reduction by half point will be effected for each case of permanent total disability

caused due to accident at work place. Four points for meeting the prescribed

standards in respect of all emissions and discharges from the Plant. A reduction of

one point will be made for every reportable deviation of the consent conditions

during the year.

o Human Resource Index :

The HR Index can be obtained by using the formula:-

HR index can be related to the points as shown below:

HR INDEX (%) POINTS

>100 10

96-100 8

91-95 6

86-90 4

80-85 2

<80 Nil

o Achievement of Overall Sales Target

Upton 80%, it is nil. Beyond 80%, it will be 0.5 point for each percentage

increase in the achievement of overall sales targets subject to a maximum of 10

points.

INDIVIDUAL MOTIVATOR/ SMALL TEAM MOTIVATOR

Upton 0.5% of distributable Profit shall be allocated every year for rewarding the

individual employees/ small teams for their distinguishable efforts towards

achievement of Organisational Excellence. Out of this 0.5% of Distributable Profit

earmarked for individual motivator, 0.25% is transferred every year to KEBF Trust

for PRMAS from 2008-09 onwards. The rewards in respect of employees in the rank

of General Manager and below will be decided by a committee consisting of all the

Functional Directors and Executive Directors. Head of corporate HR department

would be the Member Secretary of the committee.

The rewards in respect of Executive Directors and Functional Directors will be

decided by the Board of Directors or a Committee constituted by the Board. The

Committee will consider the cases of distinguished performers/small teams keeping in

view the following aspects of performance:

a) Outstanding achievements

b) Positive attitudes

c) Sincerity and dedication

d) Creativity

e) Initiative and drive

f) Good conduct

g) Promotion of best practices

h) National & International recognitions

Long Service Award Schemes:

YEARS AWARD

10 Gold Medallion (5 gms. Tirupati make)

15 Suitable item worth Rs.2000 / -

20 A Golden Frame containing

Certificate in Gold Foil

25 Suitable item worth Rs.5,000/-

TRAINING AND DEVELOPMENT

Organisations become dynamic and grow through zeal, calibre and vision of their Human

Resources. A healthy climate of trust in organisation is essential for developing Human

Resources. KRIBHCO has always considered development of Human Resources as its most

important responsibility because this alone ensures the well-being and growth of the

organisation. Training & Development activities of society form a part of continuous process

in integrating the organisational needs and the needs of individuals. "Willingness to change"

for betterment is the pre-requisite for moving towards excellence. The objectives of HRD are

to:-

Ensure selection and induction of personnel of the requisite calibre, temperament and

integrity.

Adopt training, job rotation and motivational practices to enable employees to achieve

their full potential and make their best contributions to corporate success and family

welfare.

Develop the employee as a total person

Promote work culture based on :

o Dedication to pursuit of excellence

o Achieving goals within normative time and cost

o Individual and group initiative

o Personal integrity

o Self-reliance

o Self-awareness

o Service before self

o Multi-cooperation and team spirit

o Concern for individual as a human being

To orient the employees to the needs of the Society and provide opportunities for them to

improve their performance on the job:-

To minimise the time gap in learning new development.

To equip the participants with requisite ability so that they can work with minimum

supervision.

To enable employees to update their knowledge and increase the level of performance

on their present job assignment as well as channelize their inherent potential, in order

to make him a Holistic Person.

To foster initiative, self-confidence and to overcome manpower obsolescence

occurring due to age, temperament, lack of motivation or inability of person to adopt

to changes.

To impart training to new entrants to enable them to take up their assignment

effectively.

To create an environment of "We feeling" and enhance accountability of people.

Training needs are identified on basis of recommendations by appraising officers in Appraisal

Forms and also through Consultation/ on recommendation of Departmental Head.

In house Training Programmes :

After identification of the training needs of employees and keeping in view the

requirements of the Society, the In-house Training Programmes are organised. In such

training programmes, faculties are drawn from within the organisation and from

outside also.

Submission of Training Report :

After attending the programme, the employees are required to submit within a brief

report about the training highlighting its usefulness.

Induction Training

New appointees are imparted Induction Training covering KRIBHCO's aim,

objectives and achievements, work culture, office procedures and job responsibilities.

Normally internal faculty is drawn for such training. New appointees are put on the

job only after necessary induction training. Similarly, special programmes have been

designed for the employees who are being promoted to Officer Category in the recent

past.

Honorarium

Employees who are required to be associated as Internal Faculty in In-house Training

Programmes/Seminars, etc., are paid Honorarium, as decided by the Management

from time to time.

SOCIAL SECURITY SCHEMES

KRIBHCO Provident Fund trust

KRIBHCO has its own Contributory Provident Fund Scheme under which it has

established its Rules and Trust. Under the Rules there is a centralized Provident Fund for

all units/ projects/ establishments of KRIBHCO. This fund came into force with effect

from 1st March 1985.

The custody, control, management and administration of the Provident Fund is vested in

the Provident Fund Trust constituted under the Provident Fund Rules. The Trust

comprises of Board of Trustees constituted in accordance with the Rules and consists of a

minimum of 4 and maximum of 8 Trustees. The tenure of Board is for five years. Half the

number of Trustees of the Board is nominated by the Management of KRIBHCO and the

remaining are nominated by the Recognised Unions (s) or elected from among the

members as per the election procedure laid down for the purpose.

If for any reason a vacancy of Trustee falls vacant, the same is filled up by direct

nomination by KRIBHCO Management if the vacancy relates to employer's

representative. In case, such vacancy relates to employees' representative, the same is

filled up by co-option by the Board of Trustee from among the members in accordance

with the PF Rules. Such Trustees(s) will hold office for the remaining period of the terms.

The Board of Trustees in consultation with the Management of KRIBHCO and vice-versa

subject to the approval of Commissioner of Income-Tax and/ or Regional Provident Fund

Commissioner concerned as the case may be, may from time to time delete, repeal, add to

, vary or alter the PF Rules as may be necessary. Further, amendments suggested by

RPFC and/or Commissioner of Income TAX from time to time, in conformity with the

EPF Scheme or any other statutory amendment will always be effected by the Board of

Trustees.

Every employee employed in or in connection with the work of KRIBHCO will be

entitled and required to become a member of the Provident fund immediately with effect

from the date of joining the services of KRIBHCO. For becoming the member of the

fund, an employee will be required to furnish the complete particulars as required under

the rules in prescribed format. In case an employee who joins from another organisation

and desires transfer of his PF Accumulations from his previous employer, he will have to

furnish all particulars to KRIBHCO PF Trust and his request would be processed in

accordance with the rules.

Every member will be entitled and required to contribute 12% of his monthly emoluments

consisting of Basic Pay plus DA to the fund. Such contribution of each member will be

deducted by KRIBHCO from the member's pay and will be paid to the Fund within 15

days of making such deductions. KRIBHCO will pay to the Fund its share of contribution

at the same rate as required to be compulsorily contributed by the employee within 15

days of each wage period or along with the payment of employee's contribution.

Employee Pension Scheme 1995

All employees Provident Fund subscribers contributing to the Employees Family Pension

1971 and all new entrants to the EPF Scheme 1995 from 16/11/1995 onwards

automatically become eligible to join the Pension Scheme. The rate of contribution

towards the Employees’ Pension Fund is @ 8.33% of the pay (Basic Pay + DA) and this

contribution is to be diverted from the Employer's share of the provident fund subject to

Rs. 541/- on a Standard Salary of Rs.6,500 / -. The Central Government shall contribute

@ 1.16% of the pay of the member which comes to Rs. 75/-. The pension is calculated

using the following formula:

The different types of pension plans are as follows:-

Monthly Member's Pension On service superannuation/

retirement/ short service

Monthly Widow's Pension After death in or out of service or

death after retirement of the

member

Monthly Children's Pension After death of member to two

children along with widow/

widower up to the age of 25 years.

Monthly Orphan's Pension After death of the member and

widow / widower

Disablement Pension On permanent and total

disablement during employment

The benefits of the pension are as follows:-

(a) A member can receive pension after putting in 10 years of service.

(b) The period of minimum service of 10 years is not applicable in the case of Widow

Pension/Disablement Pension/Children Pension/ Orphan Pension.

(c) A member can opt for discounted/reduced pension before the age of 58 but not earlier

than 50 years.

(d) If a member opts for reduced pension, his/her nominee or the widow /widower shall

get Capital Return Benefit equal to 100 times of monthly pension in lump sum along with

pension.

(e) On completing 33 years of pensionable service the member shall be entitled for 50%

of the member's pay at the time of retirement and on completion of 40 years of

pensionable service the pension shall be fixed at 60% of member's pay.

(f) Family pension cover for widow/widower for life or until her/his remarriage and to

two children up to 25 years of age upon death of the member, be it in service, out of

service or after receiving the pension on retirement.

GAPS AND RECOMMENDATION

HR should work upon to diminish the practice of favouritism.

Smooth flow in the hierarchy to promote unbiased promotions.

PROJECT METHODOLOGY

Dr. W.S. Guleria - GM (MS and HR)

wsguleria@kribhco.net

H.P. Kataria - GM (H.R.)

hpkataria@kribhco.net

Mr. Sharvan Kumar - Deputy SM (Mktg)

sharvankumar@kribhco.net

REFRENCES

KRIBHCO Personnel Manual

KRIBHCO Annual Report

KRIBHCO Bhawan, Sector 1, NOIDA ( Corporate Office)

Websites

o http://www.kribhco.org

o http://www.kribhcosurat.com