A Term paper Report

On

HR Practices in

Radha Structure and Engineering

Works Pvt. Ltd
Miterimarga, Mid-Baneswor, Kathmandu

Submitted By
Binu Sharma
Darshan Bhattarai
Neelam Regmi
Ninu Shakya

Ace institute of Management

07.07.2010
 Term Paper (Project ) for [HR AUDIT OF RADHA STRUCTURE AND
HRM ENGINEERING WORKS]

Table of Contents
Table of Contents....................................................................................................... 2

Introduction................................................................................................................ 5

Management System:..............................................................................................5

Office:...................................................................................................................... 6

Main Factory:........................................................................................................... 6

Vision: ..................................................................................................................... 8

Mission:................................................................................................................... 8

Services .................................................................................................................. 8

Special Structures .................................................................................................. 9

Current HR Practices ...............................................................................................11

Office Human Resource Segregation ....................................................................11

Recruitment...........................................................................................................11

Hiring process........................................................................................................12

Training and development.....................................................................................12

Labor law compliance............................................................................................13

Employee Retention policy ...................................................................................14

Performance appraisal...........................................................................................15

Other HR related practices....................................................................................16

Recommendations on HR practices .........................................................................17

Office Structure..................................................................................................... 17

1.Recruitment and hiring.......................................................................................17

Training and development.....................................................................................18

Labor law compliance............................................................................................18

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Employee Retention..............................................................................................18

Performance appraisal...........................................................................................19

Other HR related recommendations......................................................................20

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Scope of the Study

After a course on HR management, the scope of study is to study the HR

Practices in Radha Structure and Engineering Works Pvt. Ltd. by interviewing
the HR & Administration Manger, Previous HR & Administration Manger,
interaction with the general staff in an organization and understand all the
system it has institutionalized. And based upon the study recommend
suitable strategies to enhance its system being focused on the best HR
practices that the company can adapt to so as to increase its productivity
and employee satisfaction to acquire its designed Mission, Vision and Goal.

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Introduction
Radha Structure & Engineering Works (P) Ltd. was founded more than three
decades ago. Since its inception, Radha has played a major role in the
development of infrastructure in Nepal. It is an Engineers and fabricators
primarily engaged in design, fabrication and installation of steel structures. It
have more than three decades of experience in various fields that include
General Structure, Industrial Structure, Poles and Towers, Substation and
transmission, Micro Hydropower, Motor able, Trail and suspension bridges. It
is one of the first companies to introduce innovation and professionalism in
the field of structural steel fabrication. Our superior quality of work is
recognized among our customers, peers and competitors alike.

Management System:
Radha Structure is managed by qualified and highly experienced
professionals. It firmly believes that it is only as good as the people that work
for them. Hence, they believe that continuing to enhance the skills of their
employees through ongoing training and education is of utmost importance.
The management fosters an open work environment where integrity,
honesty and teamwork form the major pillars of excellence.

Recognizing the strength in manpower development, Radha has an in-house

training program to hone the skills and expertise of new employees and
experts alike. Employees also participate in national and international level
seminars, conferences, and workshops. Their own Organizational
Development Workshop held semi-annually is meant to enhance group
cohesiveness. It also serves as a forum for employees to voice their
grievances.

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Radha’s management understands that such principles as “being customer

driven, managing with facts and valuing people are not a choice; it is how we
must be”. They believe that their very survival depends on quickly analyzing
the trends and adapting to the change around them.

Office:
Radha has a well equipped office establishment consisting of Marketing,
Finance, Accounts, Administration, DDE (Design, detailing and Estimating)
and PMCS (Project Management and Customer Service) departments. A well
equipped STADD, CAD and StruCAD center is a part of their Design
department. Intranet connectivity throughput the entire office building also
provides for excellent communication across the various groups. This along
with several Information technology path breaking functionalities look after
the company process management.

Main Factory:
Radha’s factory is well equipped with manpower and necessary equipment
to meet its daily production needs. The 200+ employees at the production
site are functionally aligned with each unit reporting to a supervisor. This
separation through functional alignment results in the workers becoming
experts in their fields. There are also multiple cross training opportunities to
reduce key man dependencies which also ends up benefitting employees
who are keen to develop new expertise.

Following the guidelines of ISO9001:2008 (Quality Management System) all

works done on site is examined for quality by an 'Assembly Inspector' and
Welding Inspector' who report concurrently to both Production Director and
Quality manager.

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Vision:
“With relentless focus on our people, technology and business systems, Radha aims
to become a leader in Steel Fabrication. By upholding the highest standards of
business conduct, we are committed in providing customized solutions to our clients
and their ever changing needs.”

Mission:
“We are aware that products and technologies eventually become outdated,
but lasting relationships with our stakeholders, i.e., our valued customers,
suppliers and partners will undoubtedly put us in the forefront of
infrastructure development in the world’s newest Republic. Being a leader
and an innovator not only requires the depth of knowledge gained from over
three decades of experience; it also requires producing tangible products
and services that go above and beyond our clients’ expectations.”

Services
• Industrial & General Structures
It designs and fabricates various types of
industrial and general structural steel
works such as Factories, Warehouses,
Pagodas, Space frames, etc.
• Steel Bridge
It specializes in design, fabricate and
install several types of steel bridges such
as: suspension suspended and truss trail
bridges, girder and trussed motor able
bridges etc.
• Electrification & Substation Work

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It designs, fabricates and erects various types of transmission

communication towers, mast towers, transmission towers, tubular and
telescopic poles, transmission poles, lighting poles.

Special Structures
It designs and fabricates special and customized structures to meet some
specific requirements. In recent years it has designed and fabricated several
special structures that are both innovative and unique.
a. Mayadevi Temple, Lord Buddha's Birthplace, Lumbini – A unique
cubic space frame system suitable for large open spaces and
archeological sites where no site assemblies on normal erection
practice are allowed.
b. Image tower Lazimpat Kathmandu – A typical self supporting tower
of around 60 m height incorporated with moment connection but with
no diagonal bracings.
c. Kantipur TV complex, Kathmandu – A typical curved bridge with
nodal system.
d. HISEF building at Hattisar Kathmandu – Elegant architectural steel
work.
e. Petrol pump at Gongabu bus park, Kathmandu – Unique modular
tetrahedral structural elements for large spans.

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Current HR Practices

Office Human Resource Segregation

S.N Office Structure Administrati labor
ve Staff workers
1 PMCS Dept. 10 124
2 Engineering Dept. 15 -
3 Marketing 6 -
4 Administration and HR 14 -
5 Production 10 249
6 RTTI 4 -
7 Finance 7 -
8 Accounts 2 -
9 Civil 3 25
10 Trade 2 -
11 Hydropower 3 14
12 Micro hydropower 3 25
Total 79 437

Recruitment
The organization follows the following strategies for recruitment:

a. Word of mouth – The organization believes that the employees

are happy and the vacancies are referred by the staff to the
probable candidates

b. Referral System – The organization takes referrals from staff

and other stakeholders to attract probable candidates

c. Internal notice – The organization publishes the notice and the

staff could recommend the probable candidates to the
organization.

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d. News Paper advertisement – The organization also publishes

Vacancy advertisements to attract skilled manpower to the
system

e. Recruitment from college - one of the most important

strategies being the On-Campus recruitment. The talented
engineers are recruited from the colleges with referral influence
before other organizations approach them.

f. Hiring from technical training institute – Skilled candidates

are also hired from technical training institutes who have basic
understanding of the technicalities. Besides RSEW has its own
technical training institute citing the requirement of trained
professional.

Hiring process
a. Formal Interview — The formal interviews are organized for all
the shortlisted candidates where the interview panels would be
the, administration manager, respective dept manager and an
invitee from any other department

b. Informal Interview — Those who have been referred by the

stakeholders, informal interview are taken by the Managing
Director himself.

Training and development

The organization is determined to upgrade the skills of employees in
the organization. It follows various types of training based upon
requirement.

a. On the job training for labor after recruit – On the job

training is provided to the bottom level employees. The new and
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less skilled labors are directly sent to the field with the
experienced ones and they learn as they work.

b. Establishment of Radha technical training institute for

training prospect worker – The organization has established
its own training institute which will provide training to the
probable candidates. Also it attempts to enhance and correct the
technical skills of the labor force when necessary through this.

c. Worker interaction program with several other training

institutes – The organization believes in sharing information
with the other stakeholders. It has been making effort for
interaction of workers with the several training institute so that
best practices are shared and productivity is enhanced.

d. Skill training based on need assessment - The organization

conducts the need assessment of all the positions and relevant
training is imparted to them. This is however subjected for
recommendation of the supervisors and later approved by the
respective Department Directors

Labor law compliance

a. A committee comprising labor, staffs and union
representative “Shram sambandha samiti” – A staff relation
committee has been formed as per the Labor rules and it
regularly organizes meeting to discuss the various issues related
to the welfare of the employees.

b. Medical Insurance for labor and staff working in a field /

Site – All the labor and staff working in the field are insured.

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c. Working hours defined as labor law – The organization has

been ensuring all the staff works as per the rules of the
organization. It ensures no worker works for more than 8 hours a
day or 48 hours in a week in normal pay. It gives Overtime to
those who work for extra hours. Overtime is done on rotation
basis providing ample opportunity for the interested candidates
to make more money.

d. Bonus defined as 10% of total income revenue generated

kept for employee welfare – The organization keeps a side
10% of the net profit as per for Bonus to the employees. This has
been kept under the strict supervision of a committee that
includes all level of workers by themselves.

e. Legally registered 3 unions affiliated to different political

institutions – The organization believes in freedom of
association and has allowed 3 unions affiliated to different
political parties to exercise their right. Besides they have
identified scheduled meetings once a month for interaction.

Employee Retention policy

The organization has been providing various benefits/policies relevant
to the staff as a Employee Retention strategy:

a. Loan for Motorbike for higher office professional

(Engineers, accountants, managers etc). This policy binds
them for the tenure that they are eligible for purchase and
payment for the Motorbike loan. The amount per month is
around 800 Rs and within 4 years time we can take away the
motorbike. Besides insurance and servicing charges are paid by
the office on monthly basis.

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b. Minimum contract period of 1 year: New joiners have to

work for at least 1 year from the date of joining.

c. Movement and learning opportunity within several local

and international sites that provides ample opportunity to
improve and upgrade their skills. Also since there is this whim of
going global. In the mean time RSEW is preparing its staff for
global acceptance and moving staffs to its international Sites.

d. Recommendation for opportunity for foreign employment.

For betterment of labor, RSEW’s training institute also prepares
labor for foreign employment as well and in the meantime
processes itself.

Performance appraisal
The organization believes in monitoring performance and suitable
rewards are awarded to all the deserving staff. The details of the
Performance Appraisal system are follows:

a. Three time a year a questionnaire submission from

Supervisors as allocated by the Administration Manager

b. Aggregate marking of all the year appraisal system added for

final once a year general appraisal

c. No holds for performance measure evaluation. Entitled for

evaluation in every opportunity.

d. Levels segregated in terms of hierarchy (officer, sr. officer,

and manager) and job type (contract, temporary, and
permanent) for improvement which is clearly negotiated.

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e. Within the working tenure, chance of promotion in terms

of facility, position or type is also kept option.

f. Employee of the Year- Staff, labor

Other HR related practices

The various employee communication and involvement strategies and
Hr systems are followed in the organization. Some of the initiatives are
as follows:

a. Special Dress provided for labor

b. Insurance cover for employee working in injury/accident prone

zone

c. Extra benefits added for staffs going to difficult places as a job

Site

d. Socialized events. Biswakarma puja, Tihar, Dasain, Lunch time

at a office canteen.

e. Once a year Picnic with office payment

f. May 1st celebration

g. Once a year a recursion cum brainstorming (administrative

Staffs) at someplace away from valley as brainstorming and
discussion forum

h. Provision of doctor visit every weekend for a free general

checkup. However any checkup beyond that needs to be done by
the employee themselves.

i. Twice a year vaccination scheme for tetanus.

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Recommendations on HR practices
Following recommendation can be provided to Radha Structure and
Engineering Works Pvt. Ltd on the basis of our understanding and nature of
the environment they are working on. Though RSEW do not have their
separate Human Resource Department, we do also feel that it might not be
necessary for incorporating a separate department. The current structure
seems sufficient. This is due to the fact that the supervisors are empowered
to look after their counterparts and conduct the Human Resource Plan.
However this is strictly monitored by the HR & Administration Manager. Also
that there is not much of administrative task, He /She can surely contribute
to the requirement which he has been doing accordingly at present.

Office Structure
Plan the manpower numbers based upon the requirement of the
business and tabulate the same in the following manner so that
reviewing the same is done in efficient manners

M M M M M M Administr Lab
Total
1 2 3 4 5 6 ative Staff or
Sanction
ed
On Roll
Gaps

1. Recruitment and hiring

a. Develop manpower database for different positions in the
organization so that it’s very easy to hunt for the suitable talents

b. Develop Process Maps by defining every steps to be followed

and ensure that the recruitment process adhere to this so that
there is uniformity in the system
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c. Specific test can be designed so that highly deserving and

capable worker are hired. This seems necessary due to hectic
and pressurized working environment.

Training and development

a. Develop Job Description for all the positions in the
organization with skills required to perform the job efficiently.

b. Map every staff with the job required to perform the job as
per the Job Description and find out the gaps in the skills.
Consolidate the gaps and develop Training Plan.

c. Prepare a training Calendar and ensure that 90% trainings

are conducted as per the Training Calendar.

Labor law compliance

With the help of a Legal Consultant develop a Compliance
checklist and review the same every month so that all the
statutory requirements are complied with.

Employee Retention
a. Conduct Talent Management Study: Evaluate all the staff in
terms of performance in their respective job and their potential
to handle higher jobs. Based upon the same, develop suitable
strategies based upon the result. E.g.:

i. High on Performance and High on Potential

Develop career plan for them and reward them with

promotions and other benefits

ii. High on Performance and Low on Potential

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Ensure the benefits and rewards are awarded to these staff

iii. Low on performance and high on Potential

Job rotation and counseling

iv. Low on performance and low on potential

Counseling and if it persists plan for their exit from the

organization

b. Develop Succession Planning for all the key positions in the

organization

Performance appraisal
a. Ensure that World Class performance appraisal system is
institutionalized into the system like 360 degree performance
appraisal system

b. Include skill assessment in the performance management

system

c. Ensure that the objective for the coming year is discussed and
accepted by both the appraiser and appraisee while performance
the Performance Appraisal.

d. Ensure the performance indicators are also agreed by both the

appraiser and appraisee.

e. It’s always better to link the performance with the salary so that
there is motivation to perform better

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Other HR related recommendations

a. Develop Hr Policies and HR Vision/Mission for the
organization

b. Link Hr Plan with the Business Plan

c. Conduct HR Audit and find out where the HR Department

should be focusing on

d. Conduct Employee Satisfaction Survey and work towards

bridging the gaps

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