NOVEL HRM PRACTICES: A STUDY OF BHPV LTD VISAKHAPATNAM
Mr. P. Ravi Kumar
1, Mr. T.Vinod Kumar
2, Prof. T. Subbarayudu
31,2Scholar, Anu, 3Chairman Board of Studies, Former Head, HRM Department, AU Visakhapatnam (India)
ABSTRACT
Management Innovation has been viewed as an essential weapon for organizations to compete in this competitive business environment. Particularly, Indian manufacturing firms strive to transform their business model from labor-intensive to knowledge-intensive, which aim to immerse themselves in higher value added activities such as, developing new products, processes, and services, to continual sustain the competitiveness within the rivalries. One of the ways to heighten the organizational innovation is through effective Human Resource Management (HRM) practices and effective knowledge management. This study examined the direct relationships between HRM practices (performance appraisal, career management, training, reward system, and recruitment) and organizational innovation (product innovation, process innovation, and administrative innovation).. Data was drawn from a sample of 220 large manufacturing firm in Andhra Pradesh- India. The regression results showed that HRM practices generally have a positive effect on organizational innovation.
Specifically, the findings indicate that training was positively related to three dimensions of organizational innovation (product innovation, process innovation, and administrative innovation). Performance appraisal also found to have a positive effect on administrative innovation.
Keywords: Human Resource Management Practices, Product Innovation, Process Innovation, Administrative Innovation, Knowledge Management Effectiveness, AP-Indian Manufacturing Firm.
I. INTRODUCTION
The rapid development of high technology, information and communications technologies have urged many organizations to actively seek for new way, ideas, experimentation, and creative solutions in improving their current product, process, system and technology, which commonly referred as Management Innovation.Since mid 1980‟s Human Resource Management (HRM) has gained acceptance in both academic and commercial circle. HRM is a multidisciplinary organizational function that draws theories and ideas from various fields such as management, psychology, sociology and economics. There is no best way to manage people and no manager has formulated how people can be managed effectively, because people are complex beings with complex needs. Effective HRM depends very much on the causes and conditions that an organizational setting would provide. Any Organization has three basic components, People, Purpose, and Structure. In 1994, a noted leader in the human resources (HR) field made the following observation: Yesterday, the company with the access most to the capital or the latest technology had the best competitive advantage; Today, companies that offer
products with the highest quality are the ones with a leg up on the competition; But the only thing that will uphold a company‟s advantage tomorrow is the caliber of people in the organization.
Human Resources are the most valuable and unique assets of an organization. In the present economic environment, Human Resource Management is assuming much greater importance than ever before. It is conceived to be different from the traditional and conventional notion of Personnel Management. Subsequently Human Resource Management (HRM) has become the central concern of any organization either in public, private sector or co-operative sector.
1.1 Some HR Innovatives
Scientific Management: In fact, the concept of scientific management that was first used by Louis Brands was adopted and redefined by F. W. Taylor who was considered the pioneer of scientific Management Movement.
Though this approach contributed for improving industrial efficiency and economy it mudded the Labor Relations
1.2 Paternalism
An alternative approach towards human Resource know as paternalismi was adopted in between scientific management and human relations movement some believe that the management due to its fear of labor union growth adopted this paternalism approach
1.3 Human Relations
The human relation approach evolved due to a series of lengthy experiment conducted by Elton Mayo and his associates at the Western Electric plant of Hawthrone. This approach to Human Resource Management emphasized inter-personal relations and identification of informal groups, which have had their impact on organizational efficiency.
1.4 HR-The Key to Corporate Excellence
Many companies compete based on the strength of their product. These companies have to use people as the source spring for wining concepts. In fact, product improvements are generated by people; creative and innovative products and services can be developed and modified only through intensive and planned human efforts.
II. REVIEW OF LITERATURE
Joseph K.E & Dai.C., (2009) found that there are significant connections between HRM practices and firm performance; that the strategic alignment of HRM is also a driver for firm performance.
David W.Pitts and Lois Recascino Wise., (2010)ii; opined that the public organizations are tasked with a myriad of HRM challenges that stem from workforce diversity, but the field of public administration has not produced a body of research that adequately assists them with these struggles
Vanhala and Ahteela., (2011)iii in their study found that employee trust in the whole organization is connected to perceptions of the fairness and functioning of HRM practices. Such practices can therefore be used in order to build the impersonal dimension of Organizational trust
Harish kumar., (2011)iv; HR plays a pivotal role in the accomplishment of organizational mission. Top management attaches special significance to HRD process and systems in order to be developing this key resource. To ensure the growth and development of HR top management ought to strive to create and sustain an encouraging HRD climate.
Vanhala and Ahteela., (2011) in their study found that employee trust in the whole organization is connected to perceptions of the fairness and functioning of HRM practices. Such practices can therefore be used in order to build the impersonal dimension of Organizational trust
III. RESEARCH METHODOLOGY
3.1 Objectives of the Present Study :
1. To observe the nature and significance of HRM in public sector undertakings in general
2. To study the profile of the select organization, and the practices followed for their recruitment and selection.
3. To enquired into the training practices of the organization and to find out the employee perceptions about them.
4. To examine the Performance Appraisal system of the existing practices in the organization and
5. To assess the Industrial Relations and to know the opinions of the employees on the existing HR department in BHPV Limited, and
6. To summarize and suggest the recommendations based on the study.
3.2 Methodology and Sampling
The study is based both secondary and primary data. The primary date is collected by administering a structured questionnaire among the sample respondents. Stratified random sampling technique has been used to select the sample respondents for the purpose of canvassing the questionnaire. The sample size constitutes 20 percent of the total employees in the select organization. Apart from the questionnaire based information, efforts are also made to collect additional information thorough informal discussion with union leaders, officials of training centre and HR departments.
S.No. Respondents Universe Sample
1 Executives 220 42
2 Supervisors 90 18
3 Staff 100 20
4 Women Workers 800 160
Total 1210 240
3.3 Limitations of the Study
Certain limitations have been imposed on the study. These include non availability of data on career counseling.
OD and employee appraisal. The organizations have not been maintaining records and also not willing to disclose the information pertaining to employee appraisal. These limitations however did not affect in any way the quality of the study and in fulfilling the objectives set out by the study.
3.4 Presentation of the Study
The entire study is presented in six Chapters; Chapter-1 is focused on the Introduction to HRM. The Second Chapter provides a Review of Literature and Research Design. In Third chapter researcher concentrated on the Profile Of the organization under study. Fourth Chapter Focus on an overview of HR M Practices in the selected organization. The Fifth Chapter begins with an Analysis of Data and Interpretation on Human Resource Management Practices based on employee‟s perceptions. In Final Chapter covers the Summary and Suggestions of the study.
IV. PROFILE OF THE SELECTED UNIT
Bharath Heavy Plate & Vessels Limited: a Brief Profile:
Bharat Heavy Plates and Vessels Ltd, it is a public limited company. It is a job order/ shop production industry.
According to customer specifications and requirements it produces various products. Fore seeing the country‟s need for fabricating equipment of an exclusive factory with the main object of reducing dependence on foreign suppliers and become self sufficient ourselves. Thus the birth of BHPV LTD in the year 1966 to meet the demands of process equipment for core industry like fertilizers, petrochemicals, petroleum and other chemical industries initially.
BHPV Ltd. using different types of materials manufactured and supplied several built equipments such as pressure vessels, heat exchangers, columns, internal trays etc. After executing some important orders, BHPV LTD gained full confidence of customers which cleared the way to enter the line of cryogenic field, pulp cooking plant, evaporation plant and industrial boilers on a total turnkey basis which of later years helped in augmenting turnover of the company and increasing profitability.
In the liberalized economy of India and in the era of globalization a company must rethink its business mission and all functional strategies. In these days companies find themselves competing in a race where the road signs and rules keep on changing. Where there is no finish line, no “permanent win”. In these days when it was
“business as usual” companies could succeed only by having innovative ideas combined with by effective financial management.
Therefore, it is not surprising that today‟s winning companies are those which foresee the future and manage the finance effectively .One can manage finance effectively by managing working capital, capital structure and taking decision on capital budgeting .Ultimately, finance is at its best about value adding, developing new products and raising the worlds standards of living. The heavy engineering industry is a major strength of any economy. These heavy engineering industries which produce capital goods are the most modern of the entire industrial group.
In India these heavy engineering industries occupy a crucial role in its economic development in view of the huge investment as well as the critical importance to nation. These industries are mostly confined to the public sector only. BHPV Ltd. is the largest fabricator of process equipment in India for the petroleum, chemical and allied industries. It is fully owned by the government of India and is managed by an autonomous board of directors. Situated in the city of destiny of Visakhapatnam on the western see coast of the Deccan plateau, B.H.P.V. Ltd is accessible by road, rail, sea and is well connected to all metropolitan cities by air.
Bharat Heavy plates and Vessels Ltd., started off in 1966 as fully owned government company for Design, Manufacture & Supply of capital equipment required for process industries in the core sector such as Fertilizers, oil refineries & Petrochemicals etc.
Sri D.Sanjeevayya laid the foundation stone, the then Minister of Industry on 8th Jan 1967 in Visakhapatnam. It comes under the purview of the Department of Heavy Industry, Ministry of Industry. With the technical collaboration of M/s. SKODA Export Company of Czechoslovakia in the year 1968, it got expertise and guidance for establishing the project and for the design & manufacture of various process equipments. BHPV became a fully owned subsidiary of Bharat Heavy Electricals Ltd.
Licensed installed capacity is 23210MT. The initial capital outlay is Rs.17.5 crores. The product mix included heat exchangers, columns, and pressure vessels, Storage vessels, piping etc. During the year of it commercial production i.e. 1971-1972 the turnover was just Rs 5 lakhs. Now BHPV has crossed the turnover of 200 crores.
Past ten years turnovers are give here: In 1996-97 it has recorded on turnover of Rs 29998 lakhs i.e. all time high. But due to lack of orders in 2003-2004. BHPV has a made turnover is 5956 lakhs only. Last five years turnover are as follows.
V. AN OVERVIEW OF HRM PRACTICES 5.1 Recruitment and Selection
Human resource is playing major role in the BHPV industry. It is very important to select right person for the right job at the right time, who can perform the job successfully with high standards. People with friendly and outgoing personality, self discipline are mainly needed for this type of industry because a customer sees a company through its employees. The employees are mainly in contact with the customer depending upon the jobs they are performing.
Hence we can say selection and recruitment plays major role in the organization. Because right people should be selected for the right job and at the right time. Its the responsibility of the organization to hire that right
personnel to increase their productivity and overall performance of the organization. Thus, the study is conducted in BHPV.
Training and Development:
„Training‟ is a learning experience. It improves his or her ability to perform their duties. “Training‟ involves the changing of skills, knowledge, attitudes or social behavior. In all „training‟, there is some „education‟ and in all
„education‟, there is some „training‟. „Education‟ is the understanding and interpretation of‟ knowledge‟
As per the Annual Plan, individual proposals for each programme, with the expected expenditure both for In- house and Outstation will be submitted for approval of Managing Director as and when required. As per the plan HRD has to conduct programmes for BHPV employees i.e. Workmen / Staff Supervisors and Executives to upgrade their skills and knowledge and also to maintain quality in their line of work
Performance Appraisal :
Appraising the Performance of individual, groups and organizations is a common practice of all societies.
Performance Appraisal is a method of evaluating the behavior of employees in the work spot, normally including both quantitative and qualitative aspects of job performance. It refers to the degree of accomplishment of the tasks. That makes up i8n individual jobs. They important future of performance appraisal is the systematic description of an employee‟s job relevant strengths and weaknesses.
Performance Reward Scheme:
Performance Reward Scheme is basically designed to offer an award to the employees based on the overall performance achieved by the company in each financial year.
The scheme will cover all categories of regular employees of BHPV excepting those appointed by the president.
Welfare Measures
Statutory Welfare Activities:
It is composed of those provisions of welfare work which depend for their implementation on the coercive power of the Government. The Government enacts certain rules in regard to Labour welfare in order to enforce the minimum standards of health and safety of the workers. Employees have to observe the rules relating to working conditions, hours of hygiene safety, light, ventilation, sanitation, etc. every country is increasing statutory control over Labour Welfare
Voluntary Welfare Activities:
It includes all those activities which employees undertakes for their workers as a voluntary welfare work, philanthropic or police theory as any other, it is work which does lead to good results
Mutual Welfare Activities:
It signifies a corporate enterprise if the worker with a view to improve their lot. Activities of the Trade Union which are conductive to welfare of their measures are included under this category.
INDUSTRIAL RELATIONS Recognised Trade Unions
In BHPV, only one recognized union is there i.e BHPV National employees Union, affiliated to INTUC i.e Congress party. It is an active union, this union has the right to meet or talk to the management directly regarding the problems of employees.
Procedures for Recognition
Any seven or more workers of an establishment can form into a trade union and apply to the registrar for its recognition by subscribing their names to its rules. In BHPV, INTUC is the recognized union in that 77 members are as office bearers.
Disciplinary procedures
BHPV employees follow the disciplinary rules and regulation framed by the management, to run the organization successfully because even the company gave less wages to all the employees were showing interest to develop their organization profitably like previous one, this can be acquired through this disciplinary measures. Disciplinary procedures in BHPV comprise the following stages.
VI. CONCLUSION
Merger of BHPV with Bharat Heavy Electricals Ltd (BHEL).
The merger will facilitate Bharat Heavy Plate and Vessels (BHPV) to become a unit of BHEL. Sources said that the merger scheme includes a financial package of around Rs 628 crore, including Rs 235 crore provided by BHEL for undertaking modernization at BHPV. Sources said the amalgamation of BHPV with BHEL will be finalized once the formalities are completed with the Registrar of Companies. With the merger, BHPV will become the 17th unit of BHEL.
BHPV merger to give boost to biz opportunities for BHEL State-run Bharat Heavy Electricals today said the merger of Bharat Heavy Plate and Vessels Ltd (BHPV) with itself would provide a platform to tap potential business opportunities worth over Rs 14,000 crore in the next five years. Heavy Plates and Vessels Plant (HPVP) is the new name of Bharat Heavy Plate and Vessels Ltd (BHPV), which has been merged with Bharat Heavy Electricals Ltd (BHEL). The merger has come into effect with the Board for Industrial and Financial Reconstruction (BIFR) approving the modified draft rehabilitation scheme.
The proposal was approved by the cabinet. BHPV, which is into engineering and heavy fabrication, was declared a sick entity by the Board for Industrial and Financial Reconstruction (BIFR) in October 2005. BHEL took over BHPV as its 100% subsidiary in 2008. “However, the company‟s performance was not upto the mark, as it remained a separate company and it could not derive full benefits of synergy with BHEL,” the release said.
BHPV was set up in 1966.
As part of the rehabilitation scheme approved by the Board for Industrial & Financial Reconstruction (BIFR), Bharat Heavy Plate and Vessels Ltd (BHPV) has been merged with Bharat Heavy Electricals Ltd (BHEL). Until the merger, BHPV was a wholly-owned subsidiary of BHEL.
“This would also facilitate BHEL‟s entry into the oil & gas sectors for products like group gathering stations, gas processing units, etc as BHEL's presence in the process industries like refineries, petrochem, and fertilisers has earlier been limited to supply of individual products like boilers, turbines, motors, etc,” the statement noted.
According to the statement, after the merger, BHEL will be in a position to bid for the entire systems / sub- systems and progress to qualify for EPC (engineering, procurement and construction) contracts in the sectors where HPVP has presence. BHEL expects an additional business of over Rs 5,400 crore in the next five years.
The merger will facilitate Bharat Heavy Plate and Vessels (BHPV) to become a unit of BHEL. Sources said that the merger scheme includes a financial package of around Rs 628 crore, including Rs 235 crore provided by BHEL for undertaking modernization at BHPV. Sources said the amalgamation of BHPV with BHEL will be finalized once the formalities are completed with the Registrar of Companies. With the merger, BHPV will become the 17th unit of BHEL.
Commenting on the developments, CITU general secretary G T P Prakash said, "We are happy that the merger of BHPV with BHEL is approved. All the BHPV employees will be part of the Maharatna public sector company in a couple of days. Therefore, our request is that the BHEL management consider the issues related to upgrading of scales at par with BHEL employees and make the necessary amends after taking over BHPV."
Other union representatives including B PentaRao of TNTUC, K Sudhakar of YSRTUC and George Babu of BHPV SC/ST Employees Welfare Association too welcomed the merger.
All most all the respondents say that based on recruitment, the recruitment & selection process is conducted and accept that written examination, group discussion and preliminary interviews are conducted in CFL and also crucial level in recruitment and selection process is done by executive level, supervisory level and staff level.
All the respondents accept that induction will develop the relationship between existing employees and newly recruited and respondents say that they are satisfied with the existing recruitment and selection process.
96.66% of employees feel very good with the training. Only 3.34% employees feel good with the training programme given by the company.
27.08% of employees are interested in role playing, 50.83% of employees are interest in lecture methods, 10.83%
employees are interested in discussions, 11.25% employees are interested in programmed instruction
43.75% feel Very good about the performance appraisal system in BHPV, and 56.25% feel good of the existing performance appraisal system in BHPV.
92.91% of the people say Yes that they rewarded with promotion or compensation etc benefits basing on Performance Appraisal system in BHPV, and 17% people say No that the rewarded with promotion or compensation etc benefits basing on Performance Appraisal in BHPV.
Graphic Rating Scale was measured as nil. Confidential Report is measured as 32.5%, Assessment Centre is 45.83% to increase performance appraisal, Ranking method is verified by 21.66% to increase performance of the employee.
Study reveals that most of the employees come to know about the new welfare measures through circulars. The passing of circulars are well maintaining in the organization. It is easily accessible to majority of employees that helps them aware of the new measures when being come into existence. And it is also very economic means of sending messages throughout the organization. Through their superior, co- workers, and unions also they get proper information.
The analysis shows that all most all respondents are totally satisfied with the safety provisions providing for employees in the BHPV but, very few are responding poor to the safety provisions.
From the analysis we can say that most of the respondents are above the satisfaction level regarding the first – aid facilities providing in the BHPV for employees
The analysis shows that all most all respondents are totally satisfied with the safety provisions providing for employees in the BHPV
Majority of the employees are satisfied with the educational facility. This shows that organization is doing a good work for education and providing standard education at all levels. There 11 schools in BHPV providing CBSE, and state level syllabus.
Most of the respondents satisfied with the medical facilities provided by BHPV Majority of the employees are satisfied with the educational facility.
The study reveals that all most all of them are above the satisfaction level regarding the facilities at quarters From the analysis it is revealed that the most of the employees are satisfied about the scheme in providing pension.
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