C C CC C
C C CC C
C C CC C
Indprastha university
Minor project report
Working conditions in
larsen&toubro
Subm|tted 8y
gourav arora
06S13401710
88A GLN 3
2
CERTFCATE
This is to certify that the project entitled "Study on working
conditions,recruitment and retention poIicies" submitted
by Gourav Arora, Enroll no. 06513401710 has been done
under my guidance and supervision in partial fulfillment of
BacheIor of Business Administration(Gen).
The working analysis mentioned in this report has been
undertaken by the candidate himself and necessary
reference has been recognized and acknowledged in the
text of the report.
Ms.Saina jain Mrs. Astha
ACKNOWLEDGEMENT
4
TABLE OF CONTENT8
hapter No. Subject Page No.
h.-1.0 Introduction........ 5
h.-2.0 Research MethodoIogy...... 8
1.1 Primary Objective(s)..... 9
1.2 Hypothesis........ 9
1.3 Research Design...... 9
1.4 SampIe Design........ 10
h.-3.0 riticaI Review of Literature..... 11
h.-2 ompany profiIe............................ 12
4.1 IndustriaI ProfiIe ...... 13
h.-5.0 Recruitment and its types....... 15
h.-6.0 SeIection process.......... 28
6.1 Retention Practices............. 34
h.-7.0 Swot anaIysis........ 36
h.-8.0 Data............... 38
8.1 oIIection
8.2 Primary Data
8.3 Secondary Data
h.-10.0 Recommendations...... 52
h.-11.0 BibIiography........... 54
APPENDIX
Questionare
ase study
5
NTRODUCTON
6
NTRODUCTON
rganisations are becoming large & complex with progressive industrialisation.
Human Resource Department hence becomes the prime department in all
concerns whether small or large & its mportance can be never ever estimated.
The basic concept of summer training is to give students a new insight of
practical applications of Human Resource Department of the organisation.
O n this modern world all human being thrive to become more skilled & hence
they all work hard to achieve the predetermined goals with their wholehearted
dedication towards their jobs assigned. They always try to be close to
perfection for this they need to be properly trained in their respective fields so
that the unskilled workforce sharpen their skills & the skilled workforce move
closer to their goals.
O Also each of the employees should be properly motivated so that he/she
develops a will to work & fell that he is a part of the organisation, this help in
the development of a sense of responsibility & a sense of belongingness
amongst the employees. Hence the need for development of human resource
was felt. The Human Resource of the
O rganisation should be prepared in such a way that they help the employee
to perform efficiently.
O Have made an effort through this research study to understand and analyse
various aspects related to Human Resource strategy of Larsen and Toubro (L
& T) with special reference to recruitment and selection procedure at L & T.
7
n The Process , The Aspects Which Have Been
Looked nto Are
. History of L & T
2. ndustry profile
3. Research problem
4. Research methodology
5. Analysis of facts
6. Conclusions drawn
8
RE8EARCH
METHODOLOGY
9
RESEARH METHODOLOGY
Primary Objective(s)
The primary objective is to study , understand and analyse various aspects
related to recruitment and retention procedure at L & T.
Research Design
Exploratory research: this kind of research has the primary objective of
development of insights into the problem. t studies the main area where
the problem lies and also tries to evaluate some appropriate courses of
action.
The research methodology for the present study has been adopted to
reflect these realties and help reach the logical conclusion in an objective
and scientific manner.
The present study contemplated an expIoratory research.
10
Nature of Data
Primary data : Data which is collected through direct interviews and by
raising questionaires.
Secondary data : Secondary data that is already available and published
it could be internal and external source of data. nternal source: which
originates from the specific field or area where research is carried out e.g.
publish broachers, official reports etc.
This originates outside the field of study like books, periodicals, journals,
newspapers and the nternet.
11
CRTCAL
REVEW OF
LTERATURE
12
COMPANY PROFILE
O ounded in 38, Larsen & Toubro Limited (L&T) is one of Asia's largest
vertically integrated Engineering & Construction conglomerate with
additional interests in nformation Technology and electrical business. A
strong, customer-focused approach and the constant quest for top-class
quality have enabled the company to attain and sustain leadership
position for over seven decades.
O Serving the core sectors and infrastructure of the economy, L&T has
pioneered spectacular achievements in ndian industry. Many of the
engineering and construction projects executed by L&T have set new
benchmarks in terms of scale, sophistication and speed. So do many
buildings, ports, highways, bridges and civil structures around the country,
which are widely regarded as landmarks.
L & T - AN INDIAN MULTINATIONAL
O n line with its strategy of aligning capabilities to meet emerging trends,
L&T recently initiated a mega-transformation process, internally to ensure
that it emerges, as a knowledge-based ndian multinational.
O ver the years the company has proactively created the necessary
infrastructure for its global initiative with office locations in USA, Europe,
Middle East and Japan. The Engineering & Construction Division made
significant progress during the year in increasing its presence in the
overseas markets. The Division secured orders from international clients
located at Malaysia, USA, UK, Brazil, Saudi Arabia, UAE, Qatar,
13
Bangladesh, Sri Lanka, etc. The export earnings of the Division amounted
to Rs. 24600 million during the year 2005-06.
THE USTOMER PROFILE
O The customer profile includes leading names such as Samsung, Chevron,
Bechtel, Kvaerner, Pirelli, Siam Michelin, Goodyear, etc.
The Electrical & Electronics Division too has increased its thrust on
exports and the share of export revenues during the year ended March 3,
2006 increased to % as compared to 8% in the previous year.
L&T believes that progress must necessarily be achieved in harmony with
the environment. A commitment to community welfare and environmental
protection constitute an integral part of the Corporate Vision
ORPORATE VISION
O L&T shall be a professionally-managed
ndianmultinational, committed to total customer
satisfaction and enhancing shareholder value.
O L&T-ites shall be an innovative, entrepreneurial and
empowered team constantly creating value and attaining global
benchmarks.
O L&T shall foster a culture of caring, trust and continuous learning while
meeting expectations of employees, stakeholders and society.
14
THE BUSINESS SETOR
O L&T's Engineering & Construction Division provides 'design-build' or
'turnkey' EPC solutions in all major engineering disciplines, including civil /
structural, plant design / mechanical, electrical and process control /
automation, playing a critical role in the core sectors of ndustry and
nfrastructure areas. We provide services right from the earliest stages of
pre-project development through to start-up and bring expertise to the
industries that we serve while applying core competencies and skills to all
our work.
The industries we serve are listed as follows:
15
BUILDINGS AND FACTORIES SECTOR
Institutional and Commercial Buildings ECC undertakes turnkey construction oI
institutional and commercial buildings. The range covers IT/Theme Parks, international
class hotels, super-speciality hospitals, oIIice complexes and public buildings including
mass construction oI primary education and health centres in Iar-Ilung areas on a state-
wide basis.
ECC's capability encompasses design and construction oI structural Iramework including
Iinishing items oI works and electro-mechanical services like: heating, ventilation and
air-conditioning (HVAC), electriIication, laundry, kitchen, building automation, vertical
transportation, telecommunication networks, surveillance and security systems, plumbing
and sanitary, Iire protection, medical equipment, water/eIIluent treatment, and
landscaping and horticulture.
ECC specialises in construction oI houses oI worship, sports complexes like indoor and
outdoor stadia and preserving 'heritage' structures$ystem Housing & Industrial Projects
OUSING
ECC oIIers design and construction oI industrial system housing using mass production
techniques like heated tunnel Iorms, large area wall panel Iorms and slipIorm techniques
oI continuous construction. Using these high speed construction technology, ECC builds
the reinIorced walls and Iloor slabs in a continuous single ptheir. These technology cuts
construction time and costs and enables mass production oI Ilats. Adopting these
techniques, ECC has successIully built one Ilat per day.
INDUSTRIAL STRUCTURES
ECC's expertise covers design and construction oI all types oI industrial and storage
structures. $pecial Ieatures include
Complicated industrial structures using long-span preIabricated rooIing structures in
steel and concrete, and column-Iree Iactory and workshop structures
assive industrial estates using preIabricated modular construction techniques
ong-span storage silos and warehouses
16
Textile mills and weaving sheds
Precast conveyors, piperacks
CEMENT PLANTS
ECC carries out turnkey construction oI cement plants Irom concept to commissioning,
involving comprehensive engineering services. Expertise covers:
Construction oI large-diameter silos, including selI- supporting, structural steel space
Irame rooIs Ior storage silos erected in single piece
Precast, prestressed rooIing arrangements Ior large-span horizontal storage structures
17
TRANSPORTATION & INFRASTRUCTURE SECTOR
47
Strengths
O Right products, quality and
reliability.
O Superior product performance vs.
competitors.
O Brand mage
O Products have required
accreditations.
O High degree of customer
satisfaction.
O Good place to work
O Lower response time with
efficient and effective service.
O Dedicated workforce aiming at
making a long-term career in the
field.
Weaknesses
O Some gaps in range for certain
sectors.
O Not very popular in the
international market
O Delivery-staff need training.
O Customer service staff need
training.
O Processes and systems, etc
O Management cover insufficient.
O Sectoral growth is constrained by
low unemployment levels and
competition for staff
Opportunities
O Profit margins will be good.
O End-users respond to new ideas.
O Could extend to overseas
broadly.
O New specialist applications.
O Could seek better supplier deals.
O ast-track career development
opportunities on an industry-wide
basis.
O An applied research centre to
create opportunities for
developing techniques to provide
added-value services
Threats
O Legislation could impact.
O Existing core business distribution
risk.
O Vulnerable to reactive attack by
major competitors.
O Lack of infrastructure in rural
areas could constrain investment.
O High volume/low cost market is
intensely competitive.
48
SOURCES OF DATA
Collection:
O Data has been collected from sources like books, periodicals, journals,
newspapers and the nternet.
Primary Data:
O The primary data has been collected by raising a questionaire at the L & T
with a sample size of 45 and 25.
O While one questionaire is based on the evaluation of Recruitment
procedure, the other one is based on the evaluation of retention policies of
the company
Secondary Data:
O The secondary data has been collected from various books,
magzines, journals, information brochures and internet web sites.
O always had great interest in the field of Human Resources and it
only grew with the age. L& T is a huge company with a great repute
in the ndian Economy, and they do practice very sound HR
procedures, So think , had all the reasons in the world to make a
project on L&T
O Details of the External guide
O Name of the Guide ,Qualification and Designation
O Approval letter from External guide
O ( Signatory note from guide stating that he/she would guide you )
49
DATA ANALYSIS
50
Q1. IS TERE A WELL DEFINED RECRUITMENT POLICY IN YOUR
ORGANIZATION?
44
56
$T#NGY AG#EE DE#ATEY AG#EE
$trongly agree : 56
oderately agree : 44
CONCLUSION
The general Ieeling among the employees oI Escorts is, that the company has a well
deIined and clear recruitment policy.
51
Q2. PRINCIPLE OF RIGT MAN ON TE RIGT 1OB IS STRICTLY
FOLLOWED/A DETAILED 1OB-ANALYSIS IS DONE PRIOR
RECUIREMENT?
0
5
10
15
20
25
30
35
40
45
50
$trongly Agree
oderately agree
$trongly disagree
oderately disagree
$trongly Agree 37
oderately agree 48
$trongly disagree 0
oderately
disagree
15
CONCLUSION
A good majority oI the employees Ieel that the need Ior the manpower planning is
being given due onsideration.
52
Q3. WIC INTERNAL SOURCE OF RECRUITMENT IS FOLLOWED BY
TE COMPANY AND GIVEN MORE PRIORITY?
0
10
20
30
40
50
60
70
Internal promotion
Employee #eIerrals
TransIer
Internal
promotion
70
Employee
#eIerrals
20
TransIer 10
CONCLUSION
A good majority oI the employees are oI the view that Internal promotion is the right
source oI recruitment and the same should be given the priority.
53
Q4. Which external source of recruitment is followed b the compan
and given more priorit?
0
5
10
15
20
25
30
35
40
45
50
Campus interview
Advertisement
nline job banks
Walk in interviews
Agencies/Consultancies
Employment Exchange Campus
interview
50
Advertisement 25
nline job
banks
6
Walk in
interviews
4
Agencies/Cons 15
CONCLUSION
Campus selection and the recruitment through advertisements are the two most
popular methods oI recruitment which are currently being employed the company.
54
Q5. Which source of recruitment is relied upon when immediate
requirement arises?
32
66
Internal External
Internal 66
External 32
CONCLUSION
In the case oI immediate requirement the company heavily relies on the
internal recruitment method.
55
Q6. The sorting of candidate applications is done b some preset criteria?
$trongly Agree 36
oderately agree 52
$trongly disagree 12
oderately disagree ------
Can`t say ------
12
0
36
52
$trongly Agree oderately agree
$trongly disagree oderately disagree
CONCLUSIONS
The employees are oI the strong belieI that the selection oI the candidates is being
made on the basis oI some pre set criteria.
56
Q7. Which are the paramenters on which candidates are evaluated (give ratings out
of 100)?
Experience--------------------------------- 15
$kills---------------------------------------- 25
Process Knowledge/Intelligence-------- 25
Aptitude------------------------------------ 25
Attainments--------------------------------- 10
0
5
10
15
20
25
Experience
$kills
Process
Knowledge/Intelligence
Aptitude
Attainments
Experience 15
$kills 25
Process
Knowledge/Intel
ligence
25
Aptitude 25
Attainments 10
57
Q8. To identif the emploee's capabilities and aptitude, pschological testing is
done. Do ou think it is an useful technique?
$trongly Agree----------------------36
oderately agree------------------- 30
$trongly disagree-------------------10
oderately disagree--------------- 20
Can`t say---------------------------- 04
0
5
10
15
20
25
30
35
40
$trongly Agree
oderately Agree
$trongly Disagree
oderately Disagree
Can't say
$trongly Agree 36
oderately
Agree
30
$trongly
Disagree
10
oderately
Disagree
20
Can't say 4
CONCLUSION
Psychological testing has been voted as the best technique to evaluate the employees
capabilities and aptitude by most oI the employees
58
Q9. What tpe of interview is taken while selection?
Patterned----------------------------- 20
$tress--------------------------------- 12
Depth--------------------------------- 60
thers-------------------------------- 0
0
10
20
30
40
50
60
Patterned
$tress
Depth
thers
Patterned 20
$tress 12
Depth 60
thers 8
CONCLUSIONS
ore than halI oI the people questioned, admitted that they had to Iace in-depth
interviews at the time oI selection.
59
QUESTIONAIRE COVERING RETENTION ASPECT
Q1. ow long have ou been associated with the compan?
1-4 years--------------------------------- 31
4-10years--------------------------------- 11
10years and above----------------------- 58
0
10
20
30
40
50
60
1-4 years
4-10years
10years and above
1-4 years 31
4-10years 11
10years and above 58
CONCLUSIONS
ore than halI oI the employees admit that association with the company is Ior more
than 10 years,, while a good 30 oI the employees admitted to have leIt the company
in less than 4 years .
60
Q2. Are ou overall satisfied with the compan?
Extremely DissatisIied----------------------------- 07
Very DissatisIied------------------------------------ 11
Very $atisIied--------------------------------------- 67
Extremely $atisIied--------------------------------- 15
0
10
20
30
40
50
60
70
Extremely DissatisIied
Very DissatisIied
Very $atisIied
Extremely $atisIied
Extremely
DissatisIied
7
Very DissatisIied 11
Very $atisIied 67
Extremely
$atisIied
15
CONCLUSIONS
A large majority (82) oI the employees expressed their satisIaction with the
company. Which is a great morale victory on the part oI the management..
61
Q3. Are ou satisfied with the salar structure prevailing in our compan?
Extremely DissatisIied----------------------------- 16
Very DissatisIied------------------------------------ 20
Very $atisIied--------------------------------------- 14
Extremely $atisIied--------------------------------- 50
0
5
10
15
20
25
30
35
40
45
50
Extremely DissatisIied
Very DissatisIied
Very $atisIied
Extremely $atisIied
Extremely
DissatisIied
16
Very
DissatisIied
20
Very $atisIied 14
Extremely
$atisIied
50
CONCLUSIONS
Almost 2/3rd oI the employees expressed their dissatisIaction over the salary
structure being oIIered currently.
62
Q4. ow are our interpersonal relations with our colleagues, subordinates and
managers?
Good ------------------------------------------70
Bad ------------------------------------------- 05
Fine ------------------------------------------- 25
0
10
20
30
40
50
60
70
Good
Bad
Fine
Good 70
Bad 5
Fine 25
CONCLUSIONS
The employees are enjoying good inter personal with the colleagues, subordinates
and managers.
63
Q-5 Are ou happ with the work conditions (facilities / phsical environment) of
our compan?
Very $atisIied------------------------------------- 56
Extremely------------------------------------------ 44
56
44
0
10
20
30
40
50
60
Very $atisIied
Extremely
Very $atisIied 56
Extremely 44
CONCLUSIONS
The employees are actually divided over the working conditions oI the company.
64
Q5. Do ou have a clear path of Career Advancement?
$trongly Agree-------------------------------------- 11
oderately Agree---------------------------------- 51
$trongly Disagree--------------------------------- 9
oderately Disagree------------------------------- 29
11
51
9
29
0
10
20
30
40
50
60
$trongly Agree
oderately Agree
$trongly Disagree
oderately Disagree
$trongly Agree 11
oderately
Agree
51
$trongly
Disagree
9
oderately
Disagree
29
CONCLUSIONS
nly 62 oI the employees actually believe that their career will Ilourish with the
company.
65
Q6. Do ou find ourself growing in the organization?
$trongly Agree-------------------------------------- 29
oderately Agree---------------------------------- 60
$trongly Disagree--------------------------------- 07
oderately Disagree------------------------------- 04
29
60
7
4
0
10
20
30
40
50
60
$trongly Agree
oderately Agree
$trongly Disagree
oderately Disagree
$trongly Agree 29
oderately
Agree
60
$trongly
Disagree
7
oderately
Disagree
4
CONCLUSIONS
Almost all the employees are conIidenrt about their growth in the company.
66
Q7. Are achievements recognized and are the awarded in our compan?
$trongly Agree-------------------------------------- 31
oderately Agree---------------------------------- 51
$trongly Disagree--------------------------------- 13
oderately Disagree------------------------------- 05
31
51
13
5
0
10
20
30
40
50
60
$trongly Agree
oderately Agree
$trongly Disagree
oderately Disagree
$trongly Agree 31
oderately
Agree
51
$trongly
Disagree
13
oderately
Disagree
5
CONCLUSIONS
Almost all the employees are conIidenrt about their growth in the company.
67
Q-8 Are ou happ with our position at this compan?
$trongly Agree-------------------------------------- 18
oderately Agree---------------------------------- 36
$trongly Disagree--------------------------------- 16
oderately Disagree------------------------------- 30
18
36
16
30
0
5
10
15
20
25
30
35
40
$trongly Agree
oderately Agree
$trongly Disagree
oderately Disagree
$trongly Agree 18
oderately
Agree
36
$trongly
Disagree
16
oderately
Disagree
30
CONCLUSIONS
Almost all the employees are conIidenrt about their growth in the company.
68
Q9.The organization provides ou ample resources and opportunities at
work to learn and grow?
$trongly Agree-------------------------------------- 40
oderately Agree---------------------------------- 47
$trongly Disagree--------------------------------- 04
oderately Disagree------------------------------- 09
40
47
4
9
0
5
10
15
20
25
30
35
40
45
50
$trongly Agree
oderately Agree
$trongly Disagree
oderately Disagree
$trongly Agree 40
oderately
Agree
47
$trongly
Disagree
4
oderately
Disagree
9
CONCLUSIONS
A majority oI the employees conIided that there are ample opportunities and
resources available Ior them to grow and excel in their respective Iields.
69
Q10. There is a free flow of communication and good coordination among
supervisors and subordinates?
$trongly Agree-------------------------------------- 24
oderately Agree---------------------------------- 47
$trongly Disagree--------------------------------- 24
oderately Disagree------------------------------- 05
24
47
24
5
0
5
10
15
20
25
30
35
40
45
50
$trongly Agree
oderately Agree
$trongly Disagree
oderately Disagree
$trongly Agree 24
oderately
Agree
47
$trongly
Disagree
24
oderately
Disagree
5
CONCLUSIONS
A good 70 oI the employees believe that there is Iree Ilow oI communication
among the supervisors and the subordinates, it is a healthy sign Ior any organisation.
70
Q-11 What would be our primar reasons for leaving the compan?
BeneIits & $alary --------------------------------------------27
Better job pportunity elsewhere -------------------------- 40
conIlict with co-workers/higher authority/management- 6
Working conditions------------------------------------------- 2
Job Expectation/Challenges/Growth----------------------- 15
Poor PerIormance Evaluation------------------------------- 10
CONCLUSIONS
A big majority oI the employees leave their job because oI :-
-beneIits and salary
-better job opportunity elsewhere
71
10
15
2
6
40
27
0
5
10
15
20
25
30
35
40
BeneIits & $alary
Better job pportunity
elsewhere
conIlict with co-
workers/higher
authority/management
Working conditions
Job
Expectation/Challenges/Gro
wth
Poor PerIormance
Evaluation
BeneIits & $alary 27
Better job
pportunity
elsewhere
40
conIlict with co-
workers/higher
authority/manage
ment
6
Working
conditions
2
Job
Expectation/Chall
enges/Growth
15
Poor PerIormance
Evaluation
10
72
Q12. ow would ou rate the MORALE in our compan?
ow--------------------------------- 13
Very ow--------------------------- 2
High--------------------------------- 76
Very High--------------------------- 9
13
2
76
9
0
10
20
30
40
50
60
70
80
ow
Very ow
High
Very High
ow 13
Very ow 2
High 76
Very High 9
CONCLUSIONS
The morale oI the employees oI the company is very high which is a sign oI good
management policies oI the company.
73
FINDINGS,
RECOMMENDATIONS,
AND CONCLUSION
74
Better salary packages should be offered and periodic salary reviews
should be made by the management to keep pace with the changes in the
corporate world.
O Salary and working condition should be brought best global standard
O Salary difference in same grade should not be more than 0 to 5 percent
O Clear and faster growth path should be planned to keep every one
interested.
O Job rotation should be practiced to keep the work environment interesting
and untiring.
O Pain areas like getting an email id, reimbursements of mobile and other
expenses are very time consuming and this should be eliminated to keep
employees motivated
O Challenging assignment should be offered to the employees so as to
avoid the job -dullness
O Better performance appraisal procedures should be applied to assess the
true worth of an employee. An efficient employee should always be
promoted and awarded accordingly.
O Mediclaim benefit with cashless card scheme should be provided to the
employees.
O Balance between personal life and work through programs and policies
should always be distinguished.
O Better communication within the organization should always be
encouraged and enabled for a better working environment
O The working hours should be restricted to 8 hrs per day to keep the
employees fresh and efficient.
O Enhanced limit of mobile phones usage should be allowed.
75
ILIOGRAPHY
76
Personnel management by K.V Mishra, Aditya publishing house Madras,
2.
CHHABRA T.N, Princlples & practices of management, Dhanpat Rai and
co. (p) Ltd, Delhi, 2000.
Practice of Human Resource by Danny Shield.
Manuals from the organization.
www.kdsgroup.com.
www.LarsenToubro.com
www.google.com
www.yahoosearch.com
77
ASE STUDY
78
79
SYNOPSIS OF THE PROJECT
Scope of your thesis work
The scope of my study begins with the study of history of L & T and it further
extends to various issues related to Recruitment and Selection procedures at
L & T.
Recommendations
the objective of my study is to
----understand
----and critically analyse
the various aspects related to the Recruitment and Retention procedures at L
& T . and make further suggestions for its betterment.