HRM Roles, Functions, and Nature Explained

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INTRODUCTION
Human Resource Management (HRM) is the function within an organization that
focuses on recruitment and management of people and providing the direction for the
people who work in the organization. Human Resource Management can also be
performed by line managers.
Human Resource Management is the original function that deals with issues related
to people such as compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication,
administration and training.
Administrative activities associated with human resources planning, recruitment,
selection, orientation training, appraisal, motivation, remuneration, etc. Human
Resource Management aims at developing people through work.
 Organizations are not mere bricks, mortar, machineries or inventories. They
are people. It is the people who staff and manage organizations.
 HRM involves the application of management functions and principles. The
functions and principles are applied for developing, maintaining, and
providing remuneration to the employees in organizations.
 Decisions on different aspects of employees must be consistent with other
human resource (HR) decisions.
 Decisions made must influence the effectiveness of an organization.
Effectiveness of an organization must result in betterment of services to
customers in the form of high-quality products supplied at reasonable costs.
 HRM functions are not confined to business establishments only. They are
applicable to non-business organizations too, such as education, health care,
recreation, and the like.

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NATURE OF HR:
Human resource management is also in the process of change with regard to the
nature of the role performed. In the past, many functions were performed by HRM
professional themselves, the role they are taking on, is one of consultants to line
management, where line mangers perform many of the functions traditionally handled
by HRM professional. Similarly there is a trend in which businesses are shedding all
functions that are not directly related to core business. In the process many HRM
functions are being outsource. Hence the change in the nature of services provided.
The activity of generating unit standards and designing qualifications can be used as
an opportunity to catapult HRM Practices into the future. To do this, those issues that
are going to shape the future for HRM practices need to be identified and analyzed
especially in relation to current roles that will still be required of HRM practitioners.
These issues are central to the activity of generating unit standards (e.g. outsourcing,
societal responsibility) and their impact on HRM roles (e.g. stating, performance
management). In addition, supportive roles or functions required by HRM
practitioners will also have to be identified in order to complete the HRM
practitioners qualifications design packages.
FUNCTIONS OF HR:

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1. Managerial Functions:
The Human Resource Manager is a part of the organizational management. So he
must perform the basic managerial functions of planning, organizing, directing and
controlling in relation to his department.
There functions are briefly discussed below:
1. Planning:
To get things done through the subordinates, a manager must plan ahead. Planning is
necessary to determine the goals of the organisation and lay down policies and
procedures to reach the goals. For a human resource manager, planning means the
determination of personnel programs that will contribute to the goals of the enterprise,
i.e., anticipating vacancies, planning job requirements, job descriptions and
determination of the sources of recruitment.
The process of personnel planning involves three essential steps.
Firstly, a supply and demand forecast for each job category is made. This step
requires knowledge to both labour market conditions and the strategic posture and
goals of the organisation.
Secondly, net shortage and excess of personnel by job category are projected for a
specific time horizon.
Finally, plans are developed to eliminate the forecast shortages and excess of
particular categories of human resources.
2. Organizing:
Once the human resource manager has established objectives and developed plans and
programs to reach them, he must design and develop organisation structure to carry
out the various operations.
The organisation structure basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;

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(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and responsibilities
involved;
(iv) Co-ordination of activities of different individuals.
3. Directing:
The plans are to be pure into effect by people. But how smoothly the plans are
implemented depends on the motivation of people. The direction function of the
personnel manager involves encouraging people to work willingly and effectively for
the goals of the enterprise.
In other words, the direction function is meant to guide and motivate the people to
accomplish the personnel programs. The personnel manager can motivate the
employees in an organisation through career planning, salary administration, ensuring
employee morale, developing cordial relationships and provision of safety
requirements and welfare of employees.
The motivational function poses a great challenge for any manager. The personnel
manager must have the ability to identify the needs of employees and the means and
methods of satisfy those needs. Motivation is a continuous process as new needs and
expectations emerge among employees when old ones are satisfied.
4. Controlling:
Controlling is concerned with the regulation of activities in accordance with the plans,
which in turn have been formulated on the basis of the objectives of the organisation.
Thus, controlling completes the cycle and leads back to planning. It involves the
observation and comparison of results with the standards and correction of deviations
that may occur.
Controlling helps the personnel manager to evaluate the control the performance of
the personnel department in terms of various operative functions. It involves

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performance appraisal, critical examination of personnel records and statistics and
personnel audit.
2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to
the human resource or personnel department. These are concerned with employment,
development, compensation, integration and maintenance of personnel of the
organisation.
The operative functions of human resource or personnel department are
discussed below:
1. Employment:
The first operative function of the human resource of personnel department is the
employment of proper kind and number of persons necessary to achieve the objectives
of the organisation. This involves recruitment, selection, placement, etc. of the
personnel.
Before these processes are performed, it is better to determine the manpower
requirements both in terms of number and quality of the personnel. Recruitment and
selection cover the sources of supply of labour and the devices designed to select the
right type of people for various jobs. Induction and placement of personnel for their
better performance also come under the employment or procurement function.
2. Development:
Training and development of personnel is a follow up of the employment function. It
is a duty of management to train each employee property to develop technical skills
for the job for which he has been employed and also to develop him for the higher
jobs in the organisation. Proper development of personnel is necessary to increase
their skills in doing their jobs and in satisfying their growth need.
For this purpose, the personnel departments will device appropriate training programs.
There are several on- the-job and off-the-job methods available for training purposes.
A good training program should include a mixture of both types of methods. It is

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important to point out that personnel department arranges for training not only of new
employees but also of old employees to update their knowledge in the use of latest
techniques.
3. Compensation:
This function is concerned with the determination of adequate and equitable
remuneration of the employees in the organisation of their contribution to the
organizational goals. The personnel can be compensated both in terms of monetary as
well as non-monetary rewards.
Factors which must be borne in mind while fixing the remuneration of personnel are
their basic needs, requirements of jobs, legal provisions regarding minimum wages,
capacity of the organisation to pay, wage level afforded by competitors etc. For fixing
the wage levels, the personnel department can make use of certain techniques like job
evaluation and performance appraisal.
4. Maintenance (Working Conditions and Welfare):
Merely appointment and training of people is not sufficient; they must be provided
with good working, conditions so that they may like their work and workplace and
maintain their efficiency. Working conditions certainly influence the motivation and
morale of the employees.
These include measures taken for health, safety, and comfort of the workforce. The
personnel department also provides for various welfare services which relate to the
physical and social well-being of the employees. These may include provision of
cafeteria, rest rooms, counseling, group insurance, education for children of
employees, recreational facilities, etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of the
cases, it is found that they do not contribute towards the organisational goals as much
as they can. This happens because employees are not adequately motivated. The

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human resource manager helps the various departmental managers to design a system
of financial and non-financial rewards to motivate the employees.
6. Personnel Records:
The human resource or personnel department maintains the records of the employees
working in the enterprise. It keeps full records of their training, achievements,
transfer, promotion, etc. It also preserves many other records relating to the behaviour
of personnel like absenteeism and labour turnover and the personnel programs and
policies of the organisation.
7. Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly
discharged by the human resource manager. The human resource manager can help in
collective bargaining, joint consultation and settlement of disputes, if the need arises.
This is because of the fact that he is in possession of full information relating to
personnel and has the working knowledge of various labour enactments.
The human resource manager can do a great deal in maintaining industrial peace in
the organisation as he is deeply associated with various committees on discipline,
labour welfare, safety, grievance, etc. He helps in laying down the grievance
procedure to redress the grievances of the employees. He also gives authentic
information to the trade union leaders and conveys their views on various labour
problems to the top management.
8. Separation:
Since the first function of human resource management is to procure the employees, it
is logical that the last should be the separation and return of that person to society.
Most people do not die on the job. The organisation is responsible for meeting certain
requirements of due process in separation, as well as assuring that the returned person
is in as good shape as possible. The personnel manager has to ensure the release of
retirement benefits to the retiring personnel in time.

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3. Advisory Functions:
Human resource manager has specialised education and training in managing human
resources. He is an expert in his area and so can give advise on matters relating to
human resources of the organisation.
He offers his advise to:
1. Advised to Top Management:
Personnel manager advises the top management in formulation and evaluation of
personnel programs, policies and procedures. He also gives advice for achieving and
maintaining good human relations and high employee morale.
2. Advised to Departmental Heads:
Personnel manager offers advice to the heads of various departments on matters such
as manpower planning, job analysis and design, recruitment and selection, placement,
training, performance appraisal, etc.
Future of HR:
When people mention HR (human resource) these days, a few bywords such as talent
management and human capital evidence that human resource as a discipline is
changing to keep up with the demands of business in the 21st century can be heard.
With new opportunities opening up for HR professional, what will the future hold,
and will this future be right?
WORKERS’ PARTICIPATION IN MANAGEMENT
Human Resource Management is defined as the people who staff and manage
organization. It comprises of the functions and principles that are applied to retaining,
training developing and compensating the employees in organization. It is also
applicable to non-business organizations, such as education, health care, etc.
Human Resource Management is defined as the set of activities, programs, and
functions that are designed to maximize both organizational as well as employee
effectiveness.

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Human Resource Development is an area receiving increased attention in all spheres
of human activities today. Despite the ever growing technologies advances in
different areas of human indulgence, it is still the man that matters the most
companies can outsource the technology – at a price, money can be raised from the
markets – at a cost, plants can built – as per choice, it’s the people who can’t be out-
sourced overnight. Therefore people are still the most important asset to an
organization. In the context of productivity, a proper implementation of Human
Resource Development strategies would lead to better industrial relations, greater
efficiency, continuous organizational development, thus leading to greater
productivity.
An organization or an institution that cannot develop people is likely to degenerate. It
emphasizes the need to create a positive and healthy climate in the organization, to
enable the employees increase their work motivation, initiative and commitment to
the organization.
DEFINITION
According to Davis “It is a mental and emotional involvement of a person in a
group situation which encourages him to contribute to goals and share responsibilities
with them”. Workers’ Participation in Management is a resounding phrase, bridging
the past and the future echoes the millennial vision of nineteenth century thinkers
while heralding the evolution of new forms of industrial organization under twentieth
century pressures.
The word “Workers Participation” is plentifully supplied with ideas, institutes
and opinions. No matter how much management desires or demands that workers be
involved or participate, this will not happen if workers choose not to ‘play the game’.
Ultimately people decide themselves if they want to participate or not. In fact, they
identifies, people have a ‘democratic right to apathy. On the contrary, ‘people are
generally motivated to participate in change processes affecting their work, although
they may leave the participation actions to others: those identified as workers of
influence in this research.
Participation required that management share information about the operation
of the plant, the market place and the need of customer and supplier. Participation
was open to a select group of workers identified in this thesis as the workers of

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influence. Employee participation in decision-making has attracted a great deal of
interest among management writers, researchers, and more encouragingly, managers
in organizations as well. It is generally believed to be instrumental in increasing
productivity, through creating satisfied and motivated employees.
Thus in recent years, many participative programmes were introduced in
organizations. Among them are quality circles, total quality management, work
councils, work teams, and so on
Employee participation in decision-making has been defined in various ways. Some
writers associate it with terms such as influence, involvement, decision-making, and
control. Participation can also include indirect forms such as through employee
representatives like trade unions and so forth as against the direct form where
employees are involved in the decision-making process directly. However, most
writers tend to be concerned with the direct form of participation rather than the
indirect form.
Participation is defined here as the degree to which employees perceive they
have involvement and/or influence in the decision-making process in their
organizations that might have impacts on their jobs, whether such impacts may be
direct or indirect. Such decisions may include goal setting, evaluating alternatives
which lead to making the final choice, solving problems, "organizational
development" and other similar kinds of decisions in an organization.
Employee participation was to benefit organizations, and then what factors
could be considered by management personnel to be implemented successfully in
their organizations? In addressing this issue, most studies in the past have examined
the effects of individual characteristics on participation. However, the effect of
organizational variables on employee participation has not been thoroughly
researched. Similarly, the effect of employees' motivation to participate in the
decision-making process in their organizations has also not been thoroughly
researched. The aim is to create among the employees a sense of pride in their work
and derive the pleasure of achievement from goal fulfillment.

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SCOPE OF THE STUDY
The scope of workers’ participation management covers all issues, which lead to
optimum utilization of Human Resource with the faith that workers have necessary
will and ability to participate in decision concerning any issue of common interest the
increase in output, reduction in cost, full utilization of man-power making,
elimination of wastage, reduction in absenteeism and maintaining discipline etc.
Participation management covers the full range of decision taken by management
including those of the board of directors, thus extending the concept of participation
to the conclusion of a complete system of democratic control.

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OBJECTIVES OF THE STUDY
 To study various strategies adopted by the organization to promote Workers’
Participation in Management.
 To study various Parameters and Techniques adopted by the organization to
promote Workers’ Participation in Management.
 To understand the need of Workers’ Participation in Management and identify
the areas where can be improved by Workers Participation In Management.
 To study the attitude of upper management towards the workers.
 To identify the relationship between level of workers participation and
productivity.
 To identify the relationship between level of satisfaction workers in
organization.

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NEED OF THE STUDY
Employee turnover is highest among those who are not satisfied with their jobs.
Because qualified employees are becoming more scarce and difficult to work,
organizations need to focuses on increasing employees’ satisfaction. One useful
approach for increasing employee satisfaction is view workers as customers.
Satisfaction measurement approach can be applied to the measurement of employee
attitude. This approach yields actionable results that managers can implement to
increase employee satisfaction.
IMPORTANCE OF THE STUDY
 An instrument of ‘spiritual climate at workplace’ is developed explaining high
variance and internal consistency.
 A positive relationship is proposed to be tested between spiritual climate in
organization and employee service.
 Potential contribution of the study in business organization is based on
instrument for measuring spirituality in organization and examining the
relationship of employer and employees in organization.

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LIMITATIONS OF THE STUDY
1. The time and cost are the important limiting factors. The study is limited to the
entire BHEL organization only.
2. Unavailability of the budget will does not give much scope to study the
project.
3. We have limited period of time i.e., 45 days. Because of this reason our study
is restricted toward the particular organizations limits.
4. Workers’ Participation In Management is a debatable issue. What holds
workers point of view of Workers’ Participation in Management, may not be
viewed positively by management and necessary, so the information available
may have biased rows and discrepancy words.

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RESEARCH METHODOLOGY
Research Methodology is both empirical as well as theoretical in nature. The method
of research study is descriptive as conclusion drawn from the information collected.
The methodology adopted to find out the level of Workers Participation In
Management is through direct interaction with the workers and the past records of
meetings held with workers. The data collected will reflect the level of workers
participation in management is by questionnaires which are framed in reliance to the
objectives concerning the question of sustainable employment, research is needed into
the associations between forms of participation and personal development.
RESEARCH:-
Research in common refers to a search for knowledge. We can also define research as
a scientific and systematic search for pertinent information on a specific topic
.D.Slesinger and M.Stephenson define research as the ‘manipulation Of things,
concepts or symbols for the purpose of generalizing to extend, Correct or verify
knowledge, whether that the practice of an art”.
RESEARCH METHODOLOGY:-
Research methodology is a way to systematically solve the research Problem. The
steps adopted by the researcher to solve the research problem.
RESEARCH PROCESS:-
Research process consists of series of actions or steps necessary to effectively carry
out research. The various steps, which provide useful guideline regarding research
Process.
1. Formulating research problem
2. Extensive literature survey
3. Determining sample design
4. Collecting the data
5. Execution of the project.
6. Analysis of the data
7. Interpretation and suggestions.
8. Conclusions
9. Preparation of the report

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SAMPLE SIZE
Total sample size of 100 respondents from various departments at BHEL.
DATA BASE PRIMARY DATA AND SECONDARY DATA
The primary data collection methods include the following. A well structured
questionnaire will be administered on the respondents, followed by a personal
interview.
SECONDARY DATA
The secondary data is collected through various sources such as.
 Internet.
 Books.
 Journals
INTERVIEWS
Interviews are conducted on concerned officials in the organization this was done to
extract the information pertaining to the study not available in the books, records and
other sources.
QUESTIONNAIRE
The questionnaire is a standard form of recording answers, undertaken either by the
interview or by the respondents as the method of data collection.
A well structured questionnaire is developed to extract information about the matters
of relevance. A primary questionnaire is developed and listed on the respondents. It
was received and listed again the final questionnaire is the result of such interaction.
The questionnaire was personally administered to the people working for BHEL.
PERIOD OF STUDY
The study was undertaken for a period of 30 days
The primary data was collected for a period of 10 days
The collection of secondary data for a period of 5 days.
SAMPLING TECHNIQUES

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A random sampling technique was deployed to collect information about the project.
The random group of managers, assistant managers, and officers, workers across the
border of the state, was taken from the participants attending the training module at
management training center (MTC). A random sample of engineers and simulators
technologist and administrative officers was collected from the different organizations
to get the facts in objective manner.
JUSTIFICATION FOR THE UNIVERSE
Research work covered and respondents were picked up from departments (HR,
Personnel administrative, Engineering, Accounting, Technical, Working
departments), participants of various regions, in BHEL organization.
REVIEW OF PREVIOUS STUDY
The common theme in this literature review is an emphasis on the utilization of
human resource management factors that influence Workers Participation in
Management. First it presented different types of human resource architecture models
of employment describing the employment modes and the employers, employees’
psychological employment relationship. Second it discussed empirical evidence of the
relationship between the human resource practice and organizational commitment and
intent to stay (turnover intention).
Third the identified HR factors which include person organization fit
(selection), remuneration, recognition and reward, training and career development,
challenging opportunity, leadership behavior company culture and policies and
satisfactory work environment were discussed to establish relationship to organization
commitment and intent to stay. Finally turnover predicators such as age, gender,
occupation and industry were highlighted in relation to its influence on organization
commitment and intent to stay.

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INDUSTRY PROFILE
BHEL as a part of Pt. Jawaharlal Nehru's vision was bestowed with the onus to make
the country self reliant in manufacturing of heavy electrical equipment. This dream
has been more than realised and the contribution in nation building Endeavour is
going to continue likewise. Today, with 20,000 MW per annum capacity for power
plant equipment manufacturing, BHEL's mammoth size of operations is evident from
its widespread network of 17 Manufacturing Units, two Repair Units, four Regional
Offices, eight Service Centres, eight Overseas Offices, six Joint Ventures, fifteen
Regional Marketing Centres and current project execution at more than 150 project
sites across India and abroad. The total installed capacity base of BHEL supplied
equipment -138 GW in India speaks volumes about the contribution made by BHEL
to Indian power sector. BHEL's 57% share in India's total installed capacity and 65%
share in the country's total generation from thermal utility sets (coal based) as of
March 31, 2014 stand testimony to this. The company has been earning profits
continuously since 1971-72 and paying dividends since 1976-77 which is a reflection
of company's commendable performance throughout.
BHEL also has a widespread overseas footprint in 76 countries with cumulative
overseas installed capacity of BHEL manufactured power plants nearing 10,000 MW
including Malaysia, Oman, Libya, Iraq, the UAE, Bhutan, Egypt and New Zealand.
The high level of quality & reliability of BHEL products and systems is an outcome
of strict adherence to international standards through acquiring and adapting some of
the best technologies from leading OEM companies in the world together with
technologies developed in our own R&D centres. Most of our manufacturing units
and other entities have been accredited to Quality Management Systems
(ISO9001:2008), Environmental Management Systems (ISO14001:2004) and
Occupational Health & Safety Management Systems (OHSAS18001:2007).
Our greatest strength is our highly skilled and committed workforce of 47,525
employees. Every employee is given an equal opportunity to develop himself/herself
and grow in his/her career. Continuous training and retraining, career planning, a
positive work culture and participative style of management - all these have

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engendered development of a committed and motivated workforce setting new
benchmarks in terms of productivity, quality and responsiveness.
BHEL on undertaking of government of India and the government of Andhra Pradesh
has successfully set up and commissioned South East Asia’s first per annum capacity
at Ramachandrapuram Medak District, Andhra Pradesh in June 1980 with the
assistance of United Nations Development Programme (UNDP). The capacity of the
plant subsequently expended to 60,000 TP. Taking note of the successful operation of
the plant in establishing of BHEL Iron from Lump Iron ore and non-cooking coal
locally available Government of India sanctioned in 1982 a scheme for doubled the
capacity to 60,000 tons ore per annum by the addition of second kiln of similar
capacity.
The second unit was implemented with the in-house engineering expertise and
95percent of the plant and machinery was procured from indigenous sources by
suitably modify, the designs and adopted them to Indian equipment. The expansion
unit was completed on schedule and went into regular operation by November 1985.
Both the units are presently operated at fully rated capacity producing iron which is
being use by many Electrical Arc Furnaces (EAFS) all over the country for producing
of steel.
Since the commencement of operations of the first unit in 1980 and with the addition
of the second unit in 1985, the company’s performance has been extremely
satisfactory operations both the units at near rated capacity. The financial performance
of the company has also been sound with profits being generated from very first year
of operation.
Subsequently in 1987 the company set up a cold briquette plant for producing high
quality/high density BHEL briquettes out of BHEL iron fines of 1mm to 3mm size
fraction which were at that time being considered as waste as (EAFS) find it different
to use same unless agglomerated.
Based on the experience gained in the operation and successful implementation of the
unit designed and engineered by BHEL. The company has acquired capacity of
rendering consultancy services in the field of establishment of coal based BHEL Iron
Plant. In this direction the company has been rendering such services to various
clients in India and Abroad.

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SUBMERGRED ARC FURNANCE FACILITY FOR MANUFACTURE OF
HIGH GRADE PIG IRON:
For the direct deduction process using lump iron arc, it is necessary that the fed raw
material i.e. from ore and coal are crushing and screening to the required size. In the
crushing and screening operations. Considerable quantities of fines (both iron and ore
and coal) ore generated while the entire quantity of coal fines is being utilized in the
kiln by the special coal injection system developed by the company. Iron ore fines do
not find ready use and ore required to be dumped for every turn of BHEL iron
produced approximately 0.6 to 1.0 tons of iron ore fines being dumped as waste
similarly during BHEL iron production about 250 kgs of un burnt and partially burnt
coal in the form of char and about 50 kgs of BHEL iron tines (below 1mm size) are
generated per ton of prime BHEL iron produced which also do not have any
commercial use and ore presently being dumped as waste.
In orders to utilize the iron ore fines the iron are fines that are generated
during the crushing operation, it is proposed to install a Submerged Arc Furnace
(SAF) for production of 45000 TPA of high grade pig-iron low in phosphorous
content. For reduce to metallization level of 75-80percent in the rotary kiln the
prereduce fines would then be smelted in the SAF. A trail campaign was undertaken
at BHEL Plant, which had established that iron ore fines could be successfully
reduced to the above levels of metallization without any difficulty. The process of pre
reduced material would also improved the production levels of the kiln. Since the
metallization levels being aimed at are lower.
WASTE HEAT RECOVERY BASED POWER GENERATED PLANT:
In the rotary kiln process the waste gases generated are passed through an scrubber
and let off through the stack. The hot waste gases leaving after combustion chamber
of the rotary kiln are at temperature of about 100 to 900 degree centigrade and carry
considerable amount of sensible heat which could be utilized for power generation
through waste heat recovery boiled and steam turbine generation system.
Taking into account the quantum of waste gasses that would be generated and the
minimum sensible heat that would be available, it is anticipated that about 5 MW of
electric power could be generated which would be adequate to meet the energy
requirement of the Submerged Arc Furnace.

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BHEL ELECTRICALS:
 Has got its name since the products microscopic structure appears to be like
honey comb.
 It is used as a substitute material for steel scrap in making steel through
Electric Arc Furnance.
 Production process does not involve change of state.
ROTARY KILN AND COOLER:
The principle equipment in the reduction plant is a rotary kiln of 3 meters diameter
and 40 meters long, and a rotary cooler of 2.2 meters diameter and 20 meters long.
Metered quantities of prepared raw materials are delivered to the rotary kiln through
weight feeders, iron ore and along with limestone travel from feed end of the kiln to
their discharge and since the kiln is inclined and rotate at speeds ranging from 0.3 to
0.9 rpm.
MANUFACTURING PROCESS:-
At the start of operations the kiln is heated by burning fuel oil/coal from discharge
end. Thereafter, the evolved in the chemical reactions inside the kiln is utilized to
maintain chemical reaction inside the kiln is utilized to maintain a temperature of
about 1000 degree centigrade inside the kiln. Air is admitted into the kiln through air
tubes which are fed from electrically.
Driven fans located on the kiln shell. The temperature inside the kiln is measured by
thermo couples. Air admission is regulated so as to maintain a uniform temperature
profile inside the kiln.
The raw materials are crushed and screened in raw material preparation plant and
stored in a day bin. The processed raw materials are conveyed to the rotary kiln,
which is maintained at 1000 centigrade
The air required for combustion inside the kiln is supplied through shell fans mounted
on kiln. Part of coal is burn from the discharge end to maintain the temperature in kiln
one which is present inside travels from one end to the other end in the kiln and its
rotary to BHEL iron due to presence of carbon in coal.
The exhaust flue gasses from the furnance floe through the high efficiency venture
scrubber and the clean and cool gasses vented through the 40m high stock. The kiln

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output consists of hog BHEL iron and char flow through the rotary cooler where the
product is cooled by indirect spray of water. The cooled product is screenedand
magnetically separated and BHEL iron and char are stored separately. Kiln off gasses
flow through dust setting chamber and then venture scrubber where water is sprayed
for the settlement of dust. The constaminated water is sent to a thickener where the
solids are allowed to settle and separated water is recycled again to scrubber. The
slurry is pumped to sludge ponds after neutralization.
All kiln off gasses before entering wet scrubber they are flown through waste heat
recovery boiler. Where the sensible heat of he gasses is utilized for generating the
steam of approximately 12 th at 440 c and 48 bar pressure from kiln.
This steam combined with steam generator through the fluidized be boiler of
approximately 15 th (at 440 c and 48 bars) and sent to the turbine for generating
SIGNIFICANCE OF THE TECHNOLONGY:
As against the traditional technology of producing steel in coke over/blast furnace
route, direct reduction process to produce BHEL iron using non-cooking coal in a
rotary kiln and subsequently meeting the same in EAFS has gained prominence and
has received considerable attention in the quantitatively. How ever this technology
option requires a strong electric power supply gird for meeting the highly fluctuating
power requirements of the EAFS for steel making. This is of particular relevance of
our country where sustained and adequate availability of electronic power is major
constraint.
Also due to the fact that India Iron ores contain a high percentage of silica and
alumina, the BHEL iron thus produced contains a high proportion of gangue
constituents which needs to be removed in steel making leading to higher slag
volumes and lower yields.
This imposes percentage of BHEL iron that can be used along with the scarp foe steel
making in EAFS. Further most of the high-grade iron ores are fragile in nature
contributing the generations of fines during transport and in processing into the BHEL
iron by direct reduction technology. Hence there exists a need to explore alternative
and more attractive/economical technologies for steel making using the direct
reduction process. Where by highly fragile ores could be effectively utilized. The

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present proposal initially envisages establishment of the technology for manufacturing
of high-grade pig iron using the specially designed SAF.
The pig iron thus produced could be consumed directly or subjected to further
treatment for making high quality steel. Therefore besides establishing the technology
for producing high grade (low phosphorous) pig iron which is very much demand in
the country there above scheme would pave the way for developing a new route of
steel making. By this development, the future steel production in the country could
also be based on direct reduction sub merged are furnance route where by relieving
dependents on metallurgical coal whose resources are depleting. Also it would not
impose a major pressure on the power requirement for operating the SAF could be
met from. In plant power generation using the waste heat in kiln off gasses of the
reduction plant.
THE COMPANY RECEIVECD FOLLOWING AWARDS IN THE FIELD
SHOWING BELOW:
 1982 – Productivity and best industrial relation from Govt. of Andhra Pradesh.
 1983 – Productivity and best industrial relation award Govt. of Andhra
Pradesh.
 1983 – Best industrial relation award to employees union.
 1983 – Best technological development in Research and development by on
industrial organization from APCCI.
 1985 – Best productivity and best industrial relation award from Government
of Andhra Pradesh.
 1985 – National safety award from national safety council.
 1992 - Indira Gandhi Memorial best industrial award.
 1993 – Awards for its outstanding contribution towards Harmonious industrial
relation and labour welfare.
 1993 – 33rd All Indian National Unity Award.
 1997 – Commendation certificate for its outstanding towards Harmonious
industrial relation and labour welfare.
 Merit certificate for excellence in the achievement of MOV target in the year
2003-2004 from ministry.

24
VARIOUS DIVISIONS / DEPARTMENTS IN BHEL:
BHEL have the following 4 major divisions :
 Works Division
 Engineering & Projects Division
 Personal & Administration Division
 Finance & Accounts Division
1. Works Division :
Works division is the major division in strength, which takes care of activities
connected to plant operations, production and day to day maintenance works. This
division works. This division has mainly 9 departments. They are :
A. Mechanical Department:
This department attends all the mechanical works relating to machineries which
include repairs, replacements fittings and other maintenance works as required from
time to time.
B.Electrical Department:
It takes care of electrical works in the plant area as well as BHEL township
maintenance. The department provides adequate lighting in and around the plant
premises and attends requires works. Electrical maintenance etc. as and when needed.
C. Process Department:
It takes care on manufacturing process of BHEL Iron production and other related by
products.
2. Raw Material Department:
It takes care of the stock position quality of raw materials like coal, iron ore,
limestone etc., being received from different parties. This departments has also one
contract cell which takes care of purchase of the required raw materials from the
respective min.
 Laboratory and quality control department :
The department checks the samples and quality composition of BHEL iron after they
are produced. It measures the percentage of product and other by-products.
 Sales and Marketing Department :

25
This department concentrates mainly on sale of BHEL iron and other related by
products and plays on important role in identifying the buyers
 Stores Department :
It is responsible to keep the spare materials and tools etc., purchased by the company
in safe custody and maintain its inventory properly
 Purchase Department:
Procurement of all the spares needed to the company will be purchased through
purchase department by following stipulated procedure.
 Civil Department:
It attends all the civil maintenance works like plumbing missionary carpentry, sanitary
works, supply of drinking water to the plant and as well as in the colony.
 Engineering and Projects Division:
It takes me of construction of plants, new projects, fabrication works, erection,
expansion works etc, apart from the above it extends consultation engineering
technology to the others with in our country and abroad by the available technocrats.
3. Personnel and Administration Division: This division plays a vital role in
formulating policies, procedures, rules and regulations and implementing the same for
the benefit of the employees as well as for the development of the industry. This
division maintains harmonious industrial relations in the company.
The division has the following 4 departments.
A. Personnel department: The following works are being attended by the
department.
 Manpower planning, rules, regulations policies and procedures.
 Recruitment, promotion, confirmation and transfers.
 Sanction of annual increment and other incentive increments etc.
 Engagement of trade apprentices and other trainces.
 In plant training / project work.
 Confidential dossiers / performance appraisal reports etc.
 Disciplinary matters.
 DA (Dearness Allowance) and other allowances.
 Leave travel concession.

26
 Maintenance of service records/personal files/confidential files of all non
executives and junior officers.
 Pay particulars / scale-wise particulars etc.
B. Administration Department:
 Furniture’s fixtures, office accommodation.
 Stationery.
 Training matters / works education.
 Housing allotment.
 Guest house.
 Communication / PBX.
 Club / Citizens commits / estate matters / township security.
 Township cleaning and sanitation.
 No objection certification / salary certification / service certification etc.
 Advances including medical advances.
 School / bank / post office / LPJ out light shopping complex etc.
 Reimbursement RCTE.
 Loan / Medical scheme / interest subsidy on housing loans.
C. Industrial relations department :
 Matters connected to Contract Labor (R & A) Act 1970.
 Accidents and its settlements.
 Liveries.
 Employee participation in management.
 Union matters/collective bargaining.
 Statutory returns / IR Reports/statistics.
 Time office / canteen / security / transport.
 First aid centers/township dispensary.
 Suggestion scheme.
 Death be nevolent fund scheme.
 Central dispatch.

27
D. Official Language :
 Translating all the documents from English to Hindi.
 Quarterly reports, ministry information.
 Conducting Hindi competition of the employees.
 Introducing various Hindi Schemes.
 Annual assessment reports.
4. Finance and Accounts Division:
This division has mainly 3 sections: They are :
 Finance and Accounts.
 EDP
 Legal Cel
A. Finance and Accounts :
 Finance Concurrence.
 Suppliers, contractors.
 Salaries.
 Provident Fund.
 Cash disbursement, bank transaction.
 Internal stock verifications (RM, Stores and Spares , Fixes Assets and
Furnitures)
 Trail balance and general ledger.
 Attending statutory audit / internal / audit.
 Finalization of accounts (profit / loss, balance SS Sheet).

28
COMPANY PROFILE
Bharat Heavy Electricals Limited (BHEL) is one of the leading public sector
undertakings in India. BHEL was set up primarily to meet the needs of the power
sector in the country. It is a prestigious industry whose operations broadly cover
conversion, transmission, utilization and conservation of energy in core sectors of the
economy like Power, Industry, Transportation, Renewable Energy etc,
BHEL is one of the leading international companies in the field of power
equipment manufacture. The first plant of BHEL, was set up at Bhopal in 1956,
signaled the dawn of the Heavy Electrical Industry in India. In the sixties, three more
major plants were set up at Haridwar, Hyderabad and Tiruchirapalli that form the core
of the diversified product range, systems and services that BHEL offers today.
BHEL's range of services extends from project feasibility studies to after-sales-
service, successfully meeting diverse needs through turnkey capability.
The company has 14 manufacturing units, 4 power sector regions, 8 service
centers and 15 regional offices, besides project sites spread all over India and abroad.
BHEL has a well recognized track record of performance, making profits
continuously since 1971-72 and paying dividends since 1976-77.
BHEL manufactures over 180 products under 30 major product groups and
caters to core sectors of the Indian economy viz., Power Generation and
Transmission, Industry, Transportation, Renewable Energy etc. The quality and
reliability of its products is due to the emphasis on design, engineering and
manufacturing to international standards by acquiring and adapting some of the best
technologies from leading companies in the world, together with technologies
developed in its own R&D centers.
The Company has been constantly adapting itself to face the challenges
thrown-up by the business environment.
The manufacturing units are located at Bangalore, Bhopal, Goindwal,
Haridwar, Hyderabad, Jagdishpur, Jhansi, Ranipet, Rudrapur, Tiruchirapally. The

29
ABOUT B.H.E.L RAMACHANDRAPURAM UNIT
service centres are located at Bangalore, Baroda, Calcutta, Chandigarh, Secunderabad,
New Delhi, Nagpur, Patna and Varanasi. The power sectors are located at various
places in the four regions.
The Hyderabad unit of BHEL which is known as the Heavy Power Equipment
plant was started in 1965 and is equipped to manufacture Steam Turbines and
Auxiliaries, Gas Turbines, Turbo Generators, Compressors, Oilrigs, Pumps, Heat
Exchangers, Bowl Mills and Circuit Breakers for the Power and Industries Sectors.
The Hyderabad Unit of BHEL is located at Ramachandrapuram which is
around 30KM from the historic city of Charminar. Foundation Stone of the Plant was
laid in 1959 and the production commenced in the year 1965. The Unit was set up
mainly to manufacture 60MW and 110MW Steam Turbo Generator sets for State
Electricity Boards and also 12 MW TG Sets. From this small beginning, the
Ramachandrapuram Unit has been growing steadily in different phases of
development and today it caters to a wide spectrum of business in Power, Industry,
Transmission, Oil and Gas. It now boasts the largest number of products under a
single roof as compared to any of the other BHEL Units. Realizing the need for
diversification, BHEL Hyderabad soon ventured into others areas absorbing latest
technologies from world leaders to meet emerging challenges and needs of the
country.
STRATEGIES OF B.H.E.L
VISION:-
BHEL's vision is to become 'a world-class engineering enterprise committed to
enhancing stakeholder value'.
MISSION:-

30
To be the leading Indian Engineering Enterprise providing quality products, systems
& services in the fields of energy, transportation, industry, infrastructure and other
potential areas.
VALUES:-
Muting commitments made to external and internal customers.
OBJECTIVES:-
 GROWTH: To ensure a steady growth by enhancing the competitive nature of
BHEL in existing business, new areas and internal operations.
 PROFITABILITY:- To provide a reasonable and adequate and return on capital
employed primarily through improvement in operational efficiency, capacity
utilization and productivity and generate adequate internal resources to finance the
company’s growth.
 CUSTOMER FOCUS:- To build a high degree of customer confidence by
providing increased value for his money through international standards of
product quality, performance and superior customer services.
 EMPLOYEE ORIENTATION :- To enable each employee to achieve his
potentials, to improve his capabilities, to perceive his roles and responsibilities
and work towards the success of the company by investing in the HR continuously
and being alive to their needs.
 TECHNOLOGY:- To achieve technological excellence in operations by
development of indigenous technologies and efficient absorption and adaptation
of imported technologies to suit business needs and priorities and provide a
competitive advantage to the company.
ORGANISATION GROWTH
Pursuing a focused goal “quality products, technical excellence”, BHEL, Hyderabad
has emerged as a Premier Engineering Institution capable of meeting the growing
demands of core industries by manufacturing a spectrum of products and providing
turnkey services from concept to commissioning.

31
Starting with phase I – project implementation, Hyderabad unit has grown in 6
significant phases. In each and every phase of growth, BHEL, Hyderabad has created
landmarks of achievements by adopting the latest technology, diversifying its
operations and services to suit the changing requirements of the customers.
PHASE I – Project Implementation 1959-1970.
Indo-Czech agreement, Start of Production – First 12MW Turbine, First 60MW Set
Testing First 100 MW Set Testing.
PHASE II – Diversification 1971-78
First 60 MW set Testing, First 100 MW Set Testing.
PHASE III – Technology Up gradation 1978-86
Centrifugal Compressors, High Speed Drive Turbines, Bowl Mills, Pumps, Heaters
and Motors for 210 MW sets, Ni-hard Rolls, Oil Rigs, CNC Machine Tools
PHASE IV - Market orientation 1986-91
Gas Turbines, Work over and Mobile Rigs, Tube Mills, System Engineering
PHASE V - Adaptation to liberalization 1991-2002
Thrust on exports, Entry into Steam TG set export market –MALTA, Cyprus, Entry in
to Gas TG set export market – Malaysia, Saudi Arabia, Oman, Development & supply
of High Parameter Steam turbine, Introduction of 100 MW Class FR-9 Gas Turbine.
PHASE VI - Modernization and Capacity enhancement 2002-2012.
Special Heat Exchangers, Introduction of large Gas Turbines up to 240 MW, new
types of Compressors, Gas insulated sub-stations, Aeroderivitive Gas Turbines
MANUFACTURING FACILITIES
Equipped with the most modern manufacturing and testing facilities, BHEL,
Hyderabad manufactures a wide range of products, which find applications in core
sectors. BHEL, Hyderabad is totally committed to continuous modernization of
manufacturing, quality control and testing facilities. One of the first in the country to
initiate CNC machines, BHEL Hyderabad has today some of the most sophisticated
facilities on par with the International Companies
AWARDS AND CERTIFICATES

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ISO CERTIFICATION
BHEL has already attained ISO 9000 certification for quality management and all the
manufacturing units /divisions have been upgraded to the latest ISO 9001-2000
version. BHEL has also secured ISO 14001 certification for environmental
management systems & OHSAS -18001 certification for occupational health and
safety management systems for all its units/divisions.
OTHER CERTIFICATIONS
 EMS- Environmental Management Systems in 2002
 KEMA, Netherlands Certification for Circuit Breakers.
 Authorization for use of ‘U’ symbol of American Society of Mechanical
Engineers(ASMF), USA, for our Heat Exchangers and Pressure Vessels.
 Recognition as ‘Well-known Forge’ by the Central Boiler Board, for of
manufacture Castings, Forging, Valves and Plates
 Authorization for use of American Petroleum Institute’s (API) Monogram for
OIL Field Equipment.
AWARDS
 Best Productivity Performance Award in Heavy Engineering Sector.
 Prestigious “Sword of Honor” Award by British Safety Council for
outstanding performance in safety.
 Number of safety awards.
 Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCCI)
award for best efforts of an Industrial Unit in the state to Develop rural
economy.
 FAPCCI Award for Best Family Planning effort by an Industrial Unit in the
state.
 Prime Minister dedicates to the nation, India’s highest-rating BHEL-supplied
540 MWe Nuclear power generating units at Tarapur Atomic Power Station
 Employees of BHEL Hyderabad have won man Sham Vir National Awards of
the government of India.

33
 Outstanding employee amongst orthopedically handicapped employees in the
country award.
 All India skills competition Gold, Silver and Bronze Medals.
 Viswakarma Rashtriya Puraskar award for the employees from Govt. of India.
CUSTOMER PROFILE
The state-of-the-art technologies, modern manufacturing and testing facilities,
Quality, Service and capability to tailor make the Products / Systems to meet specific
requirements of customers, has enabled BHEL, Hyderabad to serve a wide range of
customers.
PETRO CHEMICALS STEEL
JINDAL TISCO
REFINERIES
RELIANCE PERTRO CHEMICALS
IOC
LIPCL
OIL & GAS
FERTILIZERS UTILITIES
IFFCO GIPCL
NFCL NEEPCO
NFL NTPC
METAL-ALLOYS GOVT. OF TIRPURA
ALUMINIUM CORPORATION
ELECTRICITY BOARDS
APTANSCO RSEB
GEB TNEB
MSEB
A GLOBAL PRESENCE

34
BHEL has a global presence with a wide export network. BHEL made a very early
break through in the international market in mid seventies with export to Libya,
Tanzania, Ghana etc. In recent years, BHEL Hyderabad has exported 4 sets of 70 MW
steam Turbine Generators to Malta and Cyrus. BHEL Hyderabad was also successful
early entry into gas Turbine Generators exports, through 4 sets of 30 MW for
Malaysia, 2 sets of 30 MW to Oman, 3 sets of 20 MW to Saudi Arabia and 3 sets of
30 MW to PDO Oman.BHEL has been working with International Consultants like
Bech Tel, Haldor Topsoe, Raytheon, Daelim, Hyundai, Kellogg, Snam Progetti, Black
and Veatch etcCircuit Breakers of varying capacities have been commissioned in
Burma, Kenya, Indonesia, Malawi, Mauritius, Nepal, Phillippines, Tanzania, Iran and
Turkey.
SERVICE AFTER SALES
Commitment to total customer satisfaction is an obsession at BHEL. Prompt and
efficient service to customers’ problems is an assurance that accompanies BHEL’s
involvement in any project.
A separate division for service-after-sales well equipped with the latest machinery for
making spares and well trained personnel, is serving the customers promptly every
time. In addition, this division has successfully undertaken the repairs of several
Power Generating Equipment’s of Foreign Manufacturers.
COMPUTERISATION ACTIVITIES AT BHEL HYDERABAD
At BHEL Hyderabad all the functions have been computerized to a great extent.
Following are the systems:
1. Commercial System: Customer status, Project status, Dispatch schedule has all
been computerized and running as online systems.
2. Material Management System: Purchase orders system, stores Receipt
Vouchers, Material status, Priced stores ledgers and many other related
systems are maintained online.
3. Production System: Production status of manpower, labor and machine
utilization, non-conformance systems, tools jigs and fixtures and related
junctions is maintained online.

35
4. Production Information System: Engineering documentation, Technological
documentation, Material issues documents, Process sheets, schedule of parts
are maintained with online facilities.
5. Finance System: Personnel payments, Sales, Finance Accounting work in
progress and various related ledgers are fully computerized.
6. Personnel System: Personnel detail, Educational qualifications,
Training/Award/Reward details. Service growth, Punishments and other
personnel details are maintained online.
7. Subcontract System: Generations of subcontract Scope, Indents, Subcontract
Orders, and Subcontract funds monitoring. Maintenance or subcontract
Vendor directory, SMIV’S Subcontract work follow-up activities etc., are
done with online computer systems.
SERVICE AFTER SALES
Commitment to total customer satisfaction is an obsession at BHEL, prompt
and efficient service to customers’ problems is an assurance that accompanies
BHEL’S involvement in any project.
A separate division for service-after-sales well equipped with the latest
machinery for making spares and well trained personnel, is serving the customers
promptly every time. In addition, this division has successfully undertaken the repairs
of several Power Generating Equipment’s of Foreign Manufacturers.
Global Compact Principles
Addressed
In BHEL’s VALUES ` Statement
 Zeal to Excel and Zest for change
 Integrity and Fairness in all Matters
 Respect for Dignity and Potential of individuals
 Strict Adherence to Commitments
 Ensure Speed of Response
 Foster Learning, Creativity and Team-work

36
 Loyalty and Pride in the Company
LABOUR STANDARDS.
2) Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining
The Government of India has enacted various laws to adequately protect the interest
of the working class. These laws are strictly adhered to in BHEL. All Heads of BHEL
Units are required to submit a report about compliance with different laws. This is
done to ensure that the interests of the workers are protected.
Apart from this, BHEL has various bi-partite for a for workers, where the
issues/problems concerning the workers are discussed and settled. BHEL has also an
apex level bipartite forum wherein representatives of all Units of BHEL, along with
the Central Trade Union Organizations, to which the Unions are affiliated, are
represented from the workers’ side and the Management is represented by Chairman
and functional Directors along with the Heads of Units.
4) The elimination of all forms of forced and compulsory labour
The company does not employ forced and compulsory labour.
5) The effective abolition of child labour
As per BHEL’s Recruitment Policy, the minimum age for the employment is
18 years. No person below this age can be employed in BHEL, thereby ensuring that
child labour is not employed in BHEL.
6) Eliminate discrimination in respect of employment and occupation
There has been a uniform set of rules mentioned in the ‘The Personnel Policy’
of BHEL, that equally applies to all employees, irrespective of factors such as sex,
caste, religion, race etc.
ENVIRONMENT
7) Businesses should support a precautionary approach to environmental
challenges;
BHEL’s Health, Safety and Environment policy is aligned to international standards
on Occupational Health & Safety (OHSAS-18000) and on Environment (ISO-14000)
Management Systems. All BHEL units/regions including Industry Sector office

37
complex in New Delhi & a hospital in Bhopal are certified to these standards, after
stringent audits by an international certifying agency.
During the year, the first township of BHEL, located near New Delhi (NOIDA), was
also certified to Occupational Health & Safety (OHSAS-18000) and to Environment
Management Systems (ISO-14000) beside the process of re-certification on these
systems were continued for number of BHEL Units/Regions. As part of its efforts for
development of new Environment Improvement Projects on sustainable basis, number
of initiatives has been taken by the company during the year 2005-06 & significant
among these are;
 To improve quality of ground water & preserving every drop of water, additional
rain water harvesting systems were installed at all the plants & township of the
Company.
 Several tree plantation drives were organized at plants/townships of the company
located across the country, involving the employees and surrounding community,
bringing a total number of trees planted so far up to 30 lakhs.
 Conservation of natural resources, generation of energy from waste and efficient
water management.
 Continuing its tradition of bagging prestigious national /international awards,
BHEL received Environmental Conservation & Pollution Control Award from
Federation of Indian Chambers of Commerce & Industry (FICCI) & one of its
employee Mr. R.C.Parakh was conferred the ‘National Award for Best Disabled
Employee’ for the year 2005, for his overall outstanding performance in the face
of all adversities. Recently, BHEL’s international customer –Petroleum
Development, Oman commended BHEL for successful completion of 300 days
without any Loss Time Injury (LTI) at their Qarn Alam Power Station. Earlier, for
the same power station, company received five shields for achieving different
milestones of performance in Health, Safety and Environment, (HSE) area without
any LTI.

38
8) Undertake initiatives to promote greater environmental responsibility
As part of its commitment towards the society and as a responsible corporate
citizen, BHEL is involved in a host of community development programmes in
various parts of the country.
 BHEL has set up schools for mentally challenged children at its four major units.
These schools, run by BHEL in association with members of BHEL Ladies Club,
cater to the special training required for these under privileged children.
 The first such school called `Arivalayam’ was set up by the management in 1977
at its Trichy Plant with technical support from Christoffel Blinden Mission of
Germany.
 A psychiatrist and psychologist attend to the needs of the children & speech
therapists provide guidance to teachers and parents, periodically.
 Vocation training like weaving door mat, screen printing, tailoring, electrical coil
winding, helps these students in integrating with the community and making a
living on their own, besides boosting their self confidence.
 In the area of rural development, BHEL has been playing a proactive role and has
adopted 56 villages all over the country in the vicinity of its major manufacturing
plants. In these villages welfare activities like medical aid, provision of street
lights, drinking water and infrastructure support to schools are undertaken
regularly, benefiting over 80,000 people of these villages.
 BHEL & its employees once again rose to the occasion and demonstrated their
solidarity with fellow citizens & victims of natural calamities, which rocked the
nation & contributed to help mitigate the sufferings of the people devastated by
the severe earthquake in north India-Jammu & Kashmir.
9) Encourage the development and diffusion of environmentally friendly
technologies
The Company has developed and offers products in the area of non-
conventional and renewable sources of energy like wind electric generators, solar
photovoltaic systems, solar heating systems, solar lanterns and battery powered road
vehicles.BHEL has contributed to the national effort for development of far-flung/
remote areas on a sustained basis & during the year commissioned three ‘Stand-
Alone’ Solar Photovoltaic (SPV) power plants in eastern India- Sunder bans. BHEL’s

39
efforts in harnessing renewable energy for the welfare of people living in remote parts
of the country was admired by the President of India & West Bengal Renewable
Energy Development Authority.
 In addition, India’s largest Solar-Diesel Hybrid Power Plant (50 KWp capacity)
was commissioned – facilitating availability of un-interrupted & environment
friendly power for various applications at the world-famous tourist island of
Bangaram in Lakshadweep.
 150 sets of solar powered water pumping systems were commissioned by the
company in Punjab-Northern India, catering to the power requirement of 2 H.P.
pumps for irrigation purpose.
ANTI CORRUPTION
10) Business should work against all forms of corruption, including extortion and
bribery In order to prevent corruption, a host of ‘transparency measures’ have been
initiated company wide. To achieve the objective, training programmes, seminars /
conferences & time to time Chief Vigilance Officer’s address to employees are a
regular feature in the Company.Main objective of the Company is to curb corruption
by focusing more on he preventive and educative aspects, rather than investigative /
punitive.
WORKERS’ POLICES AND PROCEDURES IN BHEL.
In case of the public sector, a number of policies and programmes were also
introduced in the 1980’s, with employee participation as an unstated assumption for
achieving greater productivity and efficiency. These include the Look East Policy,
Clean, Efficient and Trustworthy policy, introduction of quality control circles, total
quality management, and few others. It was also hoped that these policies and
programmes would help address the problem, efficiency, productivity and attitudinal
development of public sector employees.

40
IMPLICATIONS OF WORKERS POLICY AND PROPOSALS IN
BHEL.
The extent of current support for employee participation in the BHEL is fairly limited
and at times uncoordinated. For example, work-related participation policies are
focused on efforts to promote collective participation, e.g. through social partnership,
while, on the other hand, financial participation legislation leans towards
individualized participation programmes, such as share-save programmes. The
combination of the two forms of participation is left to voluntary application,
notwithstanding results suggested in the literature that a combination of participation
policies is likely to be the most, if not the only, effective means of influencing
company performance. While government policy supports both financial and work-
related participation, there is no legislation that would promote the implementation of
both forms.
Furthermore, there appears to have been little attention paid to the changing
nature of work. Increases in contracting-out of activities and services and the rise in
the use of typical forms of work, such as agency workers, are associated with a drop
in the numbers of directly employed people. This obviously has implications for the
number of workers covered by company participation schemes.
The importance of these changes cannot be overstated, as many occupations
vital to the health of the economy or to social wellbeing are not necessarily in direct
employment.
FINAL PARTICIPATION POLICIES.
As the literature demonstrates, some participation schemes may engender low-trust
relations, as a result that runs counter to the intentions in, and the assumptions
behind, much of the policy in this area. Promotion of individual stake holding for
employees could prejudice the ‘new enterprise culture of team-work’ that the
Government envisages. As found, ownership alone is unlikely to be enough to
produce or maintain attitude changes; participation in decision making is
instrumental, as supported. They found that ESOP employees were more satisfied the
more the ESOP was committed to industrial democracy.
 This method involves less consultations or even joint decisions.
 Performance of the organization is linked to the performance of the employee.

41
 The logic behind this is that if an employee has a financial stake in the
organization, he/she is likely to be more positively motivated and involved.
Some schemes of financial participation.
 Profit-linked pay, Profit sharing and Employees’ Stock Option schemes.
Pension-fund participation.
WORK RELATED PARTICIPATION POLICIES.
The majority of work-related participation proposals have been left to voluntary
application, which provides a good deal of scope for interpretation (or
misinterpretation) of government intent at firm level. Rough assumptions and
inadequate definition of terms frequently obscure the policy implications of much of
the research into the area of employee participation and company performance.
For example, the use of the word ‘flexibility’ is mired in controversy and has very
different meanings for different interest groups such as the CBI and TUC. The same
can be said of the use of the linked term, ‘participation’, and potentially ‘partnership’,
the flagship of current policy initiatives. This confusion of meanings results in
ambiguous and obscure policy implications, allowing for vastly differing
interpretations of policy intent.
A central problem with policy in this area therefore is that there are often
discrepancies between how a policy is conceived at national or enterprise level and
how it is interpreted at establishment or workplace level. As found in their superstores
case studies, ‘management style and personality’ Employment Relations Act 1999
and the Chancellor’s Pre-Budget Statement, which seem to ignore, or actively work
against, the combination effect. For instance, it excludes workers in firms with less
than 20 employees from the union recognition rights enjoyed by all other workers.
PARTNERSHIP
The term ‘partnership’ is used extensively throughout government policy and
practice, relating not just to employee participation in the workplace. In this way,
partnership can be seen as ‘a central element in the policy of the Labour government’.
The rhetoric of partnership is a key element of the Government’s policy thrust on
employment relations, and has received considerable support from the TUC in this
approach. In support of this, the TUC has established its own partnership advisory
body (the TUC Partnership Institute) for its member unions. In addition, the TUC’s

42
own documents indicate that partnership should benefit both employees and
organizations by improving the experience of working life and by adding value to the
firm.
EMPLOYEMENT RELATIONS ACT 1999
While the trade unions had overall positively received the Fairness at Work and the
Employment Relations Act 1999 that followed, they have voiced deep concerns over
the exclusion of around workers (many of whom will be trade union members) from
trade union recognition simply because their workplaces have fewer than 20
employees. This has many contradictory implications for social partnership in small
firms.
From a perspective of sustainable employment, firms that recognize trade
unions have a better training record than their nonunion counterparts. Trade union
recognition is therefore an important element in preventing multiskilling from
becoming synonymous with job losses. For instance, it could endanger the
development of trust relations by increasing the risk that ‘the only way a union can
pursue its recognition claim is by taking industrial action. That would be entirely
contrary to the spirit and aims of the workers.
Furthermore, given the prevalence of informal employee relations in SMEs,
the exclusion of many small firms from the recognition legislation could open up
employees to ‘numerous workplace influences, insecurities and other pressures’, as
well as barring any form of local-level social partnership, small firms are also unlikely
to introduce other ‘new’ forms of direct participation. The exclusion of small firms
also sends the message to employers that partnership with unions is a hindrance to
growth and flexibility, and that employees do not need formal procedures to be
involved in decision making.
There is therefore both a collective social partnership and an individualized
financial participation approach to current employee participation policy for large and
small firms. However, the success of many employee participation policies depends
on how they are administered within the firm, but the few significant omissions and
contradictions within the policies and proposals leave an ambiguity in how the
policies would be interpreted at enterprise level.

43
IMPLICATIONS FOR EQUAL OPPORTUNITIES BETWEEN
EMPLOYEES AT BHEL.
As this review has demonstrated, a simple assumed association between the
introduction of participation, and attitude and behavior change can itself obscure
many essential factors. Most of the literature on employee participation takes the
economic outcome as its main focus; little attention is paid, and many assumptions are
made, abut the social outcomes for employees. If, as seems clear, employee
participation cannot guarantee the results expected bye policy makers, what effects
are policies designed to promote participation likely to have on the worker, and on
company performance? For example, from an economic perspective, it is probable
that firms make decisions on which employee groups gain the opportunity to
participate ‘because returns on investment in individual human capital are most likely
to differ significantly, therefore excluding some employees from opportunities to
voice their concerns.
Given the results from the literature, policy makers should be especially
concerned about the implications for potentially excluded groups. Ignorance of gender
differences within the workforce could lead to participatory schemes undermining
equality in the workplace, by realigning and reinforcing the power distribution
towards groups more able and willing to participate. It is possible that, in some
schemes, there are core groups who will reap the benefits of participation, and
marginalized workers whose desire and ability to participate are depressed.
This could have negative consequences not just for growing numbers of
women at work but also for other excluded or marginal groups, such as minority
ethnic workers or employees on temporary, casual, part-time or agency contracts.
Also disadvantaged are workers whose job design does not enable them to easily
participate, for example shift workers, transport workers, sales representatives, home
workers and part-time, temporary or agency workers.
At the operational level, as this review has shown, management methods are
all too often based on false assumptions about the nature of the workforce, resulting in
probable discrepancies between the objectives and results of participatory
programmes.

44
ENPOWERED TEAMS:-
Empowerment occurs when authority and responsibility are passed on to the
employees who then experience a sense of ownership and control over their jobs.
Employees may feel more responsible, may take initiative in their work, may get
more work done, and may enjoy the work more.
For empowerment to occur, the following approach needs to be followed as compared
to the traditional approach:-
 Element Traditional Org. Empowered Teams.
 Organizational structure Layered, individual Flat, team.
 Job design Narrow, single task Whole process, multiple tasks.
 Management role Direct, control Coach, facilitate.
 Leadership Top-down Shared with the team.
 Information flow Controlled, limited Open, shared.
 Rewards Individual, seniority Team-based, skill-based.
 Job process Managers plan, control, improve Teams plan, control and
improve.
TOTAL QUALITY MANAGEMENT
 TQM refers to the deep commitment, almost obsession, of an organization to
quality.
 Every step in company’s processes is subjected to intense and regular scrutiny
for ways to improve it.
 Some traditional beliefs are discarded.
 High quality costs more.
 Quality can be improved by inspection.
 Defects cannot be completely eliminated.
 Quality in the job of the QC personnel.

45
New principles of TQM are:-
 Meet the customer’s requirement on time, the first time, and 100% of the time.
 Strive to do error-free work.
 Manage by prevention, not correction.
 Measure the cost of quality.
 TQM is called participative because it is a formal programme involving every
employee in the organization; making each one responsible for improving
quality everyday.
KNOWLEDGE MANAGEMENT
Knowledge Management ('KM') comprises a range of practices used by
organizations to identify, create, represent, and distribute knowledge for reuse,
awareness and learning. It has been an established discipline since 1995 with a body
of university courses and both professional and academic journals dedicated to it.
Most large companies have resources dedicated to Knowledge Management, often as
a part of 'Information Technology' or 'Human Resource Management' departments,
and sometimes reporting directly to the head of the organization. As effectively
managing information is a must in any business, Knowledge Management is a multi-
billion dollar world wide market.
Knowledge Management programs attempt to manage the process of creation
(or identification), accumulation and application of knowledge across an organization.
Knowledge Management, therefore, attempts to bring under one set of practices
various strands of thought and practice relating to:
 Intellectual capital and the knowledge worker in the knowledge economy
 The idea of the learning organization
 Various enabling organizational practices, such as Communities of Practice
and corporate Yellow Page directories for accessing key personnel and
expertise
 Various enabling technologies such as knowledge bases and expert systems
help desks, corporate intranets and extranets, Content Management, winks and
Document Management.

46
While Knowledge Management programs are closely related to Organizational
Learning initiatives, Knowledge Management may be distinguished from
Organizational Learning by a greater focus on specific knowledge assets and the
development and cultivation of the channels through which knowledge flows.
The emergence of Knowledge Management has also generated new roles and
responsibilities in organizations, an early example of which was the Chief Knowledge
Officer. In recent years, Personal knowledge management (PKM) practice has arisen
in which individuals apply KM practice to themselves, their roles and their career
development.
MAJOR PROCESS OF KNOWLEDGE MANAGEMENT.
This major process includes in knowledge management activities are as follows:
1)Gathering
 Data entry
 OCR and scanning
 Voice input
 Pulling information from various sources
 Searching for information to include
2) Organizing
 Cataloging
 Indexing
 Filtering
 Linking
3) Refining.
 Contextualizing
 Collaborating
 Compacting
 Projecting
 Mining

47
THEORETICAL FRAME WORK
HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is the function within an organization that
focuses on recruitment and management of people and providing the direction for the
people who work in the organization. Human Resource Management can also be
performed by line managers. Human Resource Management is the original function
that deals with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee
motivation, communication, administration and training. Administrative activities
associated with human resources planning, recruitment, selection, orientation training,
appraisal, motivation, remuneration, etc. Human Resource Management aims at
developing people through work.
CONCEPTUAL FRAME WORK OF WORKERS’
PARTICIPATION IN MANAGEMENT.
This study was to determine the nature of relationships between participation
and job satisfaction and performance. It also sought to identify significant predictors
and valued outcomes from participation among trainers of public sector institutions.
The study discovered that the level of perceived participation among trainers was
high. Workers participation was found to have a moderate and positive relationship
with job satisfaction, but its relationship with performance was slightly weaker. The
results appeared to match closely with some of the participation studies conducted in
the BHEL, suggesting that these studies were not very much different across cultures.
Workers participation could be enhanced if certain critical factors are present
in an organization. These include supportive superiors who are less authoritarian in
their management approach, while employees should have high need for
independence and perceive that they face a moderate amount of work pressure.
Individuals with high need for independence, achievement, and job abilities are likely
to perform better in their jobs. On outcomes from participation, trainers were found to
place greater importance on intrinsic than extrinsic outcomes. Finally, the study was
found at the BHEL was suitable as a framework for studying employee

48
participation.The concept of workers’ participation in management is considered as a
mechanism where workers have a say in the decision-making process of an enterprise.
Definition
The concept of WPM is a broad and complex one. Depending on the socio-political
environment and cultural conditions, the scope and contents of participation change.
International Institute of Labour Studies:
WPM is the participation resulting from the practices which increase the scope
for employees’ share of influence in decision-making at different tiers of
organizational hierarch with concomitant assumption of responsibility.
ILO:-Workers’ participation, may broadly be taken to cover all terms of
association of workers and their representatives with the decision-making process,
ranging from exchange of information, consultations, decisions and negotiations, to
more institutionalized forms such as the presence of workers’ member on
management or supervisory boards or even management by workers themselves as
practiced in BHEL.
ADVANTAGES
 The attitude and outlook of the parties should be enlightened and impartial so
that a free and frank exchange of thoughts and opinions could be possible.
Where a right kind of attitude exists and proper atmosphere prevails the process
of participation is greatly stimulated.
 Both parties should have a genuine faith in the system and in each other and be
willing to work together. The management must give the participating
institution its right place in the managerial organization of the undertaking and
implementing the policies of the undertaking. The labor, on the other hand, must
also whole heartedly co-operate with the management through its trade unions.
The foremen and supervisory cadre must also lend their full support so that the
accepted policies could be implemented without any resentment on either side.
 They become more willing to take initiative and come out with cost-saving
suggestions and growth-oriented ideas.
 It is flexible. Any rules or procedures such as in the count adversarial process do
not restrict it. It can, therefore, be used in a wide variety of different situations.

49
 It enhances the role of the participants. The participants are able to have in an
effective mediation a relatively highly degree of control over the process. It is,
they who will be able to fashion an agreement unique to their own needs. The
agreement will reflect the norms and interests of the parties themselves and not
those of an objective of the third party like judge. The assumptions here is that
the parties are good judges of what the real issues are and whether they can be
resolved adequately.
 It emphasizes a ‘win-win’ situation. Mediation is not concerned with who is
right or wrong, or losses and gains, but reaching a workable agreement, i.e., in
keeping with the party’s needs.
The following areas come under the study of Workers participation in Management.
These are the most common areas identified as coverage of workers in the
organizations. Thus my study focuses to identify the reasons, areas, scope and effects
of retention management
THE CONCEPT OF WORKERS PARTICIPATION IN
MANAGEMENT
Industry means secondary sector where factors of production (four M’s : men,
material, money and machine) are engaged for the purpose of production and where a
business organization exists.
Industry Relation is mainly concerned with the employer - employee relationship.
There are three participants of Industrial Relation: Workers, their organization, the
employers/management and their association and the agencies of the government.
Industry Relation has 3 categories of determinants
1. Condition of work: - It includes
i. Worker’s earnings-
(a) Wages
(b) Dearness Allowance
(c) Bonus
(d) Gratuity

50
(e) Over time payment
ii Working hours
iii Leaves and Holidays
iv Social security
v Labour welfare
2. Working condition:-
i Physical conditions -
(a) Nature of work itself, to terms of fatigue, monotony and
boredom.
(b) Safety
(c) Light
(d) Temperature, ventilation
(e) Noise
(f) Industrial health and hygiene.
Ii.Social condition -
(a) personal management
(b) supervision
(c) communication
(d) industrial democracy
(e) unfair Labour practices
(f) trade unionism
3. Living conditions - such as
(a) Housing condition
(b) Consumption pattern
(c) Family size
Participation Defined
Participation – “Participation means permitting of the subordinates to take part in the
decision-making process and thus to enlist individual creativity and enthusiasm”.
“Participative Management is a practical way of integrating individual and
organizational goals”. It gives employees opportunities to play active role in planning,
coordinating and controlling their own work and thus make employees work more

51
meaningful and relevant. Participative management seems to offer a promising route
to the satisfaction of employee needs and, at the same time, increased company
profits.”
The philosophy underlying worker’s participation stresses on
1) Democratic participation in decision-making.
2) Maximum employer- employee collaboration.
3) Realization of greater measure of social justice.
4) Greater industrial efficiency
5) Higher level of organizational health and effectiveness.
The involved parties understand participation variously
1) For management :- It is joint consultation, prior to decision-making
and view the concept as a tool for improving the overall performance
of an enterprise.
2) For government :- It is an association of labour and management
without the final authority or responsibility in decision-making.
3) For worker :- It means co-determination or co-decision.
Participation is conceived as a way of reducing power differences and therefore
equality is stressed.
Various Forms of Participation
The form or the way in which workers may and do participate in management
varies from industry to industry. This variation arises out of the differences in The
specific way in which different forms of participation may take place also varies from
situation to situation. There may be formal organizational structures, such as the
Works committee, Plant councils, Shop councils, Production committee, Safety
committee, Joint Management council, Canteen Committee, P.F. Management
Committee, etc.

52
1. Participation through Collective Bargaining –
Both the parties the management and the unions bargain to get maximum
advantage out of the other party. They jointly negotiate with each other on various
terms of employment. Issues which are the subject matter of collective bargaining and
over which the interests of labour and management are in conflict are wage rates,
bonus rates, working hours, and number of holidays.
2. Participation through Joint Consultation:-
Joint consultations as a form of workers participation in management implies setting
up of a committee of representatives of workers and management for mutual
consultations. The representatives of management inform their counterpart of
development, pertaining to plans on the polices of the enterprise. Workers have no
authority to take decisions on any issue relevant to them or the enterprise. Under joint
consultations, the management is not obliged to accept the advice given bye the
worker and only consults the workers, and their desires, opinions, ideas, suggestions
etc.
3. Participation through Profit Sharing :-
Profit sharing in certain quarters is considered as a form of participation. Profit
sharing is the fundamental right of the factory labour like that of capital. Since all
factors are equally indispensable, labour should get equitable share in the surplus
generated.
4. Participation through Joint Management :-
The board of management has the representatives of the government, employees and
the consumers. The committees have wide responsibilities for the administration of
social benefits and services and the handling of grievances and have to be consulted
on economic matters. The extent of representatives of employees and consumer in
decision making and general management depends upon the composition of board of
management.
Ascending participation:
Where workers are given an opportunity to influence managerial decisions at higher
levels through their elected representatives to work councils or the Board of the
enterprise (i.e. integrated participation)

53
Descending participation:
That may be given more power to plan and make decisions about their own work
(delegation and job enrichment). They may participate through collective bargaining
(i.e. disjunctive participation.
LEVELS OF PARTICIPATION
There are three stage of participation
INFORMATION SHARING:
Is one in which an employer looks upon the joint committee as a means of informing
employees about business conditions and the outlook of their company, as well as
telling them about changes in operating methods before they are put into effect
PROBLEM SHARING:
Stage is one at which the employer recognizes that workers can make a contribution
in such areas as material costs, and the quality of waste, and the management presents
the facts and labour is requested to give its opinion or to make proposals for
improving the situation.
IDEA SHARING STAGE:
The management indicates its willingness to have labor initiated ideas in any kind of
production and personnel activities and labor, with certain safeguards, is willing to
contribute to the operation of the business.
INFORMAL CO-OPERATION
Where the parties merely co-operate in gathering information. The pooled facts are
then made available to both the parties for whatever use they care to make of them.
CONSTRUCTIVE CO-OPERATION
Where each party makes suggestions for improvement and the suggestions are acted
upon.

54
ADVISORY CO-OPERATION
Where each side may consult with the other. The union gives advice on certain
matters to the management and the management consults them before action is taken
and
JOINT DETERMINATION
Where policy matters are jointly decided by the union and the employer.
ADMINISTRATIVE PARTICIPATION
It involves a greater degree of sharing of authority and responsibility of the
management functions.
DECISION PARTICIPATION
It is the highest form of participation, where sharing in the decision-making power is
complete and the delegation of authority and responsibility of managerial function to
such a body is maximum.
COMMUNICATIONS TO WORKERS
Some employees fear that employee involvement programs can be used as a way for
management to brain wash employees and to form shop floor and office floor groups
of workers that compete with unions. How could one prevent this form happening? In
a joint employee-management program who should have the final say over what gets
communicated to the employees.
ORGANIZATIONAL CULTURE AND CLIMATE
Organizational culture and climate place an important role in retaining employees.
Culture should be adaptable to the employees and the climate should suit their work
conditions. If these both things are satisfied by the employees then the employee will
retain with the organization. At BHEL the organization culture is eco- friendly to all
the employee working in this organization are very much satisfied with culture and
climate.

55
JOB SATISFACTION
Employee job satisfaction is important in organization. If the employee is
satisfied with the present job content he will be work with zeal to grow in the
particular area. If the employee is not satisfied with the job design for which he is
working he will not be interested to take work initiatively to work which shows that
the employee is not satisfied with his work. Employees’ job dissatisfaction will shows
an negative impact on the other employees about the organization way of job
designing for its employees. Thus employees’ job satisfaction is important to retain
the employees with the organization. At BHE; job satisfaction as well as the job
security is very high when compared to the other organizations.
TRAINING AND DEVELOPMENT.
Training and development program are frequently conducted at the Air India in order
to make their employees aware of the new technology used and way of implantation
of technology at the work place. Training program is conducted for engineers of the
organization at the work shops. Even the training program is conducted for other
department which is attended by all the employees from the country. This training
program enables them in developing communication skill and learn new thing at the
training program.
ATTITUDE OF UPPER MANAGEMENT TOWARDS THE
WORKERS
The attitude and outlook of the Upper Management should be enlightened and
impartial so that a free and frank exchange of thoughts and opinions could be
possible. Where a right kind of attitude exists and proper atmosphere prevails the
process of participation is greatly stimulated.
WELFARE BENEFITS.
BHEL provides better welfare facilities to its employees when compare to any other
organization. It provides with all the basic amenities to it employees from date of
joining till the death and even after that organization takes care of the employee’s
family. These facilities are not provided by any other organization. Employees enjoy
the welfare benefits provided by the organization and retain with it.

56
Employer Eligibility
Even small organizations with only a few workers can take advantage of the benefits
offered. Many commercial products exclude smaller employers or charge
outrageously high prices to compensate for covering fewer workers.
Group Purchasing
You don’t have to go it alone, but have the power of group purchasing (worker group
versus just your staff) with substantial added leverage through association.
Community Rating for Health Plan
All groups are rated equally regardless of age, gender, or health condition, and ratings
are based on the claim experience of all workers within each geographical location,
not just on the experience of the workers at your individual work place.
ARTICLES
Employee Participation in Employee Share Ownership Plans:
-Michelle Brown,*
Although Employee Share Ownership Plans (ESOPs) are widely used in Australian
companies, little is known about why employees participate in these plans. Yet
understanding employee motivations for share ownership has significant implications
for corporate governance, human resource practice and public policy. We first review
the history of ESOP regulation in Australia in order to identify Federal Government
policy rationales for ESOPs. We then identify employee motives for participating in
employee share plans. Two hypotheses, using data from both employee shareholders
and non shareholders in Australia are investigated: that employee
Participate because they are motivated by financial considerations or they participate
because they believe share ownership is a way of increasing their involvement in
decision-making at work. We then compare employee motivations for participating in
ESOPs with the policy rationales advanced by the government for its support of
ESOPs. We find, based on this comparison, that there is a mismatch between the
employee motivations and the government’s policy rationales and we identify the
implications of this finding for public policy.

57
Employee Participation, (2012)25 Australian Journal of Labour Law
- I Landau
We have three objectives for this article.
First, we examine the regulation of Employee Share Ownership Plans (ESOPs) in
Australia for the period 1974–2011. The incidence of ESOPs in Australian companies
has been determined in part by the laws relating to the establishment and operation of
such plans. We chart the changes to the laws, particularly the taxation laws, regulating
ESOPs. We also identify the policy rationales advanced by the government for its
support of ESOPs.
Our second objective is to examine the reasons why employees participate in ESOPs.
We test two contrasting motivations for ESOP participation — afinancial motivation
and a control motivation — using survey data collected from employees (both
shareholders and non-shareholders) at two major Australian companies on their
reasons for taking up, or not taking up, shares in their company. Where shares or
options are provided to employees as a ‘gift’, we would expect the take up rate on
share plans to be typically high as there is no cost to the employee. Our focus is on
contributory plans where employees need to make a financial contribution to acquire
shares in their employing company. Employees must make a conscious decision to
participate and therefore this represents a suitable opportunity to test the employee
motivations for share ownership in the Australian context.
Our third objective is to compare the employee motivations for participating in
ESOPs with the policy rationales advanced by the government for its support of
ESOPs. The government has in the past set specific participation targets4 and today
continues to promote employee shareownership.5 We examine whether the
government rationales for ESOPs and the policy settings employed to promote share
ownership are consistent with employee motives for share ownership. If there is not
an alignment, this implies that government policies aimed at encouraging employee
share ownership may not enjoy strong support from employees and companies may
not derive the potential benefits of ESOPs.

58
DATA ANALYSIS AND INTERPRETATION
EMPLOYEE TENURE IN BHEL
1. Since how long you have been working in BHEL
Table -1
YEARS <5 yrs 5-10 yrs 10-15 yrs 15-20 yrs >20 yrs
PERCENTAGE 0 2 4 34 60
Graph -1
INTERPRETATION
This shows that as maximum number of employees is working since 15 years .The
information given by respondents is assumed as genuine.
0 2 4
34
60
0
10
20
30
40
50
60
70
<5 yrs 5-10 yrs 10-15 yrs 15-20 yrs >20 yrs
PERCENTAGE
PERCENTAGE

59
WORKERS PARTICIPATION IN MANAGEMENT
2. Is Workers Participation in Management practiced in BHEL?
Table -2
Graph -2
INTERPRETATION
From the above graph, it shows that the respondents agree that there is a complete workers’
participation in management at BHEL.
100
0
0
20
40
60
80
100
120
Yes No
1 2
No. of respondents
No. of respondents
S.no
Options No. of respondents
1 Yes 100
2 No 0

60
WILLING POWER IN PARTICIPATE
3. Are you able and willing to participate?
Table -3
Graph -3
INTERPRETATION
Employees in the organization are more willing to participate in the meetings
conducted by the management, and they are able contribute their own decision in
generating their views and suggestions. 60% says yes in participating the meetings
conducted by the management.
S.no
Options No. of respondents
1 Yes 60
2 No 10
3 Neutral 30
60
10
30
0
10
20
30
40
50
60
70
Yes No Neutral
1 2 3
No. of respondents
No. of respondents

61
FEELING ABOUT GOING TO WORK
4. on an average day, what best describes your feeling about going to work?
Would you say usually
Table -4
Graph -4
INTERPRETATION
70% of the employees in the organization look forward going to work on average
days.10% of the employees wish to think to go or not.5% of employees have mixed
feelings to each other decisions.
70
10
5
15
0
10
20
30
40
50
60
70
80
Look forward
to it
Wish you
didn't have
to go
Mixed
feelings
Don't know
a b c d
No. of respondents
No. of respondents
S.no Options No. of respondents
a Look forward to it 70
b Wish you didn't have to go 10
c Mixed feelings 5
d Don't know 15

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