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A STUDY ON JOB SATISFACTION BEML LIMITED

1. INDUSTRY PROFILE
Industries are the pointing lights to the growth of an economy and are the backbone of the
country. The development and growth of a country largely depends on industrialization of its
economy.

India is the basically an agriculture-based country. It is after the independence, India has given
importance to the growth of industrial development through five year planning programs.
Government has taken a leading march to up heave the movement of industrialization.

For any country, small or big, developed or developing, need good infrastructure facilities such
as roads, dams, tunnels etc, the infrastructural facilities are the primary needs for the
transportation or movement of goods. Roads play a vital role in this aspect.

Tremendous development has taken place in science and technology, which has mechanized
every work in every field. Manually carried out work is less productive and time consuming.
Thus to increase efficiency and productive, mechanical equipment came into existence and
almost every field is mechanized. As such, the demand for such mechanical equipments has
increased tremendously.

India has been ruled by foreigners for several years. And such, after independence India has
given priority to strengthen the countrys defense force. Several industries producing defense
equipment has been started by the government of India thereafter. India felt the need of having
strong defence which is capable of defending its borders from neighbors. In this view, BEML
has been established by ministry of defense.

BEML was mainly established to produce defense equipments and heavy capital equipments
like railways coaches, earthmovers, machineries, etc. Ministry of defence started one unit of
BEML at KGF in the year 1964.It is one of the biggest units in Asia.

BEML has number of branches all over India. Its various units in different parts of the country
have immensely contributed to the growth of the Indian economy. It not only has provided
employment but also successfully achieved the advantage of economies of scale. Ancillary and
small scale industries have been started around its vicinity. It is contributing to the economic

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growth both directly and indirectly. It is emerged as a powerful industries unit of Indian
economy.

Indias heavy earth moving equipment and spare parts manufactures manufacture various
capacities ranging from mini version to giants. Overseas manufactures also the equipment and
spare parts to our country and hence provide stiff competition.

2. COMPANY PROFILE

a. BACKGROUND AND INCEPTION OF THE COMPANY

BEML LIMITED (Formerly Bharat Earth Movers Limited) is a PUBLIC SECTOR UNIT
(PSU) under the effective administration of minister of defence department. The organization
was set up in the late 40s as a part of HALs Aircrafts now known as Hindustan
Aeronautics Limited to manufacturing railway coaches. It gradually diversified into earth
moving equipment in 1984, after one year i.e., since 1965 the organization has its own entity
i.e. BEML.

The company was incorporated in the 1st five years plan when India was very weak
economically. The main objective of setting up this organization was to manufacturing heavy
earth moving equipments, rail coaches, heavy duty truck laying equipment etc.

BEML limited was incorporated with its corporate head quarter at Bangalore on 11-04-1964
under the Ministry Of Defence. A premier ISO 9000 company in India and is the second
largest manufacture of earth moving equipments in Asia. A four decade old multi-location and
multi-product company, BEML limited has vital applications in diverse sectors of economy
such as coal, mining, steel, cement, power, irrigation, construction, road building and railway.
It has expanded its product range to cover high-quality hydraulics, heavy-duty diesel engines,
welding robots and undertaking of heavy fabrication jobs. With the increased focus on the
quality, safety and productivity BEML limited is pioneering new technologies aiming at value
addition in all its processes and products.

A profit making Miniratna public sector undertaking under the administrative control of
ministry of defence, BEML limited commands 70% market share in domestic earth mover
industry. Nearly 40% of its equity has been divested to financial institutions and public.

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BEML is a Miniratna-Category-1 company under the ministry of defence and is engaged in


design, manufacturing, sales and after-sales-service of a wide range of construction and
mining equipment, defence products and metro coaches. In addition, the company also
provides engineering solutions in certain specialized areas such as automotive and
aeronautics. The newly formed trading division of the company deals in third party products
catering to the requirements of its domestic and overseas customers. The company has four
manufacturing facilities in Bangalore, Mysore, Kolar Gold Fields (KGF) and Palakkad in
Kerala.

Its Rs.300 million R&D centre at KGF is one of the best in Asia and houses most modern
laboratories in fluid power engineering, material science, structural engineering and power
line testing.

BEML limited nationwide network of sales offices enables buyers with ready access to its
wide range of products and services. The company extends the efficient after sales support to
its customers through nation wide service centers equipped with parts depots, rehabilitation
services keeps its customers satisfied. The companys site engineers ensure higher availability
of machines through prompt services.

The transfer of State-of-the-art technologies from global partners like M/s. Bucyrus, M/s.
Tetra and Burma Labadie has enabled BEML limited to achieve high standards in product
engineering and gain international competence.

Apart from the above BEML limited also supplies aircraft towing tractors, engineering mine
plough, armored recovery vehicles, weapon loading equipments, etc to meet the Indian army
and air-force requirement.

KGF COMPLEX

KGF complex of BEML limited was set up in the year 1967. BEML limited is proud to have a
second largest machine shop at KGF complex, which is the second largest manufacturing
facility in the entire Asia.

KGF COMPLEX DIVISIONS

Earth Movers Division

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Marketing Division
Hydraulics & power line
Research & Development
Rail Coach Unit
Heavy Fabrication Unit

EM division manufactures earth moving and construction equipments like bulldozers,


hydraulic excavators, wheel loaders, track shovels, rope shovels, pipe layers and walking
dragline for open coast mining as well as long wall mining system for underground mining.
Marketing division deals only with spare parts.

A separate division by name H&P line is also attached to the main division which meets the
needs and requirements of the (other divisions) EM division and Mysore division. H&P
division manufactures products termed as hydraulic aggregates it manufactures Hi-tech
precision aggregates like transmission, final drives axles, pumps, control valves, cylinders and
suspensions.

R&D facility for continuous up gradation through research part of manufacturing system
methods etc. An amount of Rs.30 crores was invested.

b. NATURE OF THE BUSINESS CARRIED

In past three decades, BEML has been expressed as a leading corporate giant in manufacturing
sophisticated earth moving equipments for vital application in diverse sectors of economy. The
company operates under three major Business verticals - viz. Mining & Construction, Defence
and Rail & Metro. Each of the above Business is headed by a Director who acts as CEO of the
Business and reports to the Chairman & Managing Director of the company.

CONSTRUCTION AND MINING

For development in surface mining projects, BEML produces machines such as electric
shovels, hydraulic excavators, bulldozers, wheel loaders, wheel dozers, dump trucks, motor
grades, pipe liners and tyre handlers. Besides, giant walking draglines for cost effective
operations in the open cost mines are manufactured. BEML has diversified into underground
mining with products such as side discharge loader, load haul dumper, winch winder, randy car
etc. BEML has an active fleet of machines to take up works related to road construction,

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infrastructure, development, port handling and petroleum projects. The company is floating a
joint venture soon to take up contract mining and maintenance of mining equipments.

DEFENCE AND CIVIL AVIATION

BEMLs multi-role vehicle and transportation trailers have found total acceptance with
arms forces. The company has started manufacturing the entire range of value added TATRA
vehicles which are robust and suitable for all terrain operations including bridge layer field
artillery, tractor, and medium/heavy recovery vehicles. BEML also supplies engineering mine
ploughs, armored recovery vehicles and weapon loading equipment. For the civil aviation sector,
BEML offers passenger aerobridges, crash fire tender and aircraft towing tractor.

METRO & RAILWAY SECTOR

BEML is today geared up for manufacture and supply of Hi-tech stainless steel metro to
upcoming urban infrastructure projects in various cities. Other product supplied for Indian
railways include integral rail coaches, overhead inspection cars, track laying equipment broad
gauge rail bus, treasury vans and spoil disposal vans. It also offers electric multiple units for
development in suburban services.

The company also manufactures heavy duty diesel engines, diesel generator sets and hydraulic
aggregates. BEML has entered into strategic alliance with international partners for several new
products which include multi utility armed vehicles, mine laying vehicles, long all mining
system, tunneling equipment, mine protected vehicles, surface miners etc.

AEROSPACE BUSINESS

BEML Limited, in its drive towards continuing diversity, from its current product
configurations of Mining & Construction, Rail & Metro and Defence Sectors, has forayed into
Aerospace business. Taking advantage of the global and domestic opportunities available in the
fast expanding aerospace market in India, and the Off-Set policy laid down for defence
procurement by Government of India, BEML launched its aerospace vertical in its technology
division during the year 2007 to exploit the potential of the e-engineering services in the
aerospace domain. Subsequently, a new Aerospace Manufacturing Division was launched

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during Aero India 2009. Shri.Pradeep Kumar, then Secretary, Defence Production inaugurated
the new aerospace manufacturing division on 12th February 2009.

The Aerospace Vertical of the Technology Division provides expert services like CAD/CAE &
NPDs, offers high-quality customized engineering services & solutions, extensive experience
and inherent strength in product design & development. Technology Division has certifications
of CEMILAC, ISO 9001:2000 & NABL.

BEML is already supporting the aerospace operations by supplying Ground Support


Equipment such as Aircraft Towing Tractor (ATT), Multi Purpose Weapon Loader (MPWL-
Bheema) and Crash Fire Tender (CFT). The manufacturing division has scaled up its activities
through manufacture and supply of wide variety of Jigs, fixtures, Ground Support and Test
Equipment. The other areas of concentration will be manufacture of gears and hydraulic
aggregates to aeronautical standards as BEML has core strength in these areas. To progress
further, the activities are planned in a phased manner with additional infrastructure to
manufacture sheet metal and CNC components leading to fabrication of sub-assemblies and
major assemblies, Landing Gears of aircraft, manufacture of composites with the ultimate
objective of building and testing fixed wing and rotary wing aircraft, assembly of UAV from
kits and upgrades of aircraft and helicopters. The Aerospace Manufacturing facility is
established in Mysore Complex of BEML.

The company has 9 manufacturing units spread over the following locations:

Kolar Gold Fields (KGF) Complex (around 100 Km from Bangalore)

Earth Moving Division

Rail Coach Unit II

Heavy Fabrication Unit

Hydraulic & Power line Division

Mysore Complex (around 130 Km from Bangalore)

Truck Division

Engine Division

Bangalore Complex - Rail & Metro Division

Palakkad Complex

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The company has been registering consistent growth in sales and profits and has made a
turnover of `3,558 Cr in 2009-10 registering a growth of 18% over the previous year with a
Profit Before Tax of ` 320 Cr and has orders on hand of over `5,000 Cr as of end March 2010.

The Company has drawn up VISION 2013 with an ambitious growth rate of 12% CAGR for
crossing `5,000 Cr turnovers With this emerging prospects, BEML has plans to cross `5,000 Cr
in the next 2 years and is poised to achieve ` 10,000 Cr mark by 2016-17 and the company is
gearing up with necessary infrastructure for achieving the same.

c. VISION, MISSION AND QUALITY POLICY

VISION OF BEML LIMITED

To become a market leader, as a diversified company supplying products & services to Mining
& Construction, Railway & Metro and Defence Services and emerge as an International player.

MISSION OF BEML LIMITED

1. Improve competitiveness through organizational transformation and Collaboration /


Strategic Alliances / Joint Ventures in technology.

2. Grow profitably by aggressively pursuing opportunities in National and International


Markets.

3. Attract and build people in a rewarding and inspiring environment by fostering creativity
and innovation.

4. To achieve and retain a dominant position in the manufacture and supply of earth moving,
mining, construction, railway and defence equipment by establishing high standard of quality,
capability and reliability.

5. To be competitive, responsive and continuously improve services so as to ensure total


customer satisfaction.

6. To conserve energy and eliminate waste through optimum utilization of men, money,
materials and machinery.

QUALITY POLICY OF BEML LIMITED

Quality is the hallmark of excellence.


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BEML Limited views quality improvement as a business strategy and hence remains proactive in
the areas of the product and service quality. At BEML, a corporate Quality policy emphasizing
Total Quality Management ensures that quality system adopted results in products, services and
processes that meet stringent standards and requisite performance criteria. A separate Quality
Department spearheads the thrust towards total quality management. All the manufacturing units
in the company are under ISO 9001 2000 certification.

Well established vendor base is a key strength of BEML. In order to ensure optimum
performance of equipment each product is tested in working conditions in the companys own
track and fields. Vendor assessment and development is the key component of the companys
strategy for achieving Total quality. BEML actively promotes small group activities to
encourage and enhance Quality Culture at all levels. The small group activity teams regularly
participate in regional / national / international level competition and have achieved recognition
as meritorious performers. Experienced professionals work with vendors to improve direction to
the quality improvement activities.

To offer products and services to the satisfaction of customers and strive to upgrade quality
continuously is the quality adopted in BEML.

QUALITY OBJECTIVES

Manufacturing and supply equipment to meet customers technical needs and guarantee
satisfactory performance of products over their life-time.
Have an effective and documented system to ensure that every input to the product is
designed, procured, manufactured and controlled for optimum efficiency and service.
Train and motive personnel at all levels, so as to include quality consciousness and foster
team work.
Bring about quality awareness in customer personnel in operation and maintenance of
product to maximize their utilization.
Establish high reliability standardized offer prompt customer service ensuring high
equipment availability.
Strive continuously for a better product quality through technological improvement.
Achieve operational excellence through waste elimination and value engineering efforts.

d. PRODUCT PROFILE

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BEML limited manufactures a wide range of products to meet the needs of mining, power,
construction, fertilizer, cement, and steel and rail sectors.

The earthmoving equipment includes Bulldozers, Dump Trucks, and Hydraulic Excavators.
Wheel Loaders, Wheel Dozers, Tyre Handlers, Pipe Layers, Rope Shovels, Walking Draglines,
Motor Graders, Scrapers, Water Sprinklers, Aircraft Towing Tractors and Backhoe Loaders.
BEML limited has recently introduced Road Headers and Side Discharge Loaders for
underground mining applications.

Railway products include Integral Rail Coaches, Electric Multiple Units, Rail Buses, Track
Laying Equipment, Spoil Disposal Unit, Treasury Van and Overhead Equipment Inspection
Cars. BEML limited manufactures Heavy Duty Trucks and Trailers, Bridge Layer, Radar
Carrier Vehicle, Heavy Recovery Vehicle, Crash Fire Tender, Aircraft Toning Tractor, Mine
Plough, and Hydraulic aggregates for transportation sector.

Road construction products include Batching and Mixing Plants, Vibratory Compactors, and
Pneumatic Fired Rollers. Disaster management products include Radio Control Dozer, and
Hydraulic Excavator.

The company also manufactures high power diesel engines and heavy duty hydraulic
aggregates to meet specific customer requirements.

MINING AND CONSTRUCTION PRODUCTS

CRAWLER

EXCAVATORS

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WALKING DRAGLINE

PIPE LAYERS

LOADERS

ROPE SHOVEL

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GRADERS

SPRINKLERS

UNDER GROUND MINING

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TYRE HANDLER

BACKHOE LOADERS

RAIL AND METRO PRODUCS

STAINLESS STEEL METRO CARS PASSENGER COACHES

AC ELECTRIC MULTIPLE UNITS STAINLESS STEEL AC


BUS

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DC ELECTRIC MULTIPLE UNITS RAIL BUS

OVERHEAD EQUIPMENT INSPECTION CARS

8-WHEELER OHE 4-WHEELER OHE

TREASURY VANS SPOIL DISPOSAL


UNITS

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HYDRAULIC AGGREGATES

HYDRAULIC PUMP HYDRAULIC


CYLINDER

HYDRO-PNEUMATIC SUSPENSION CONTROL


VALVE

POWERLINE AGGREGATES

TRANSMISSION AXLE

AGGREGATES FOR BMP

TRANSMISSION FINAL DRIVE

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HRV AV 15 HEAVY RECOVERY VEHICLE

BEML TATRA T815 VTI 8*8 TANK TRANSPORTER

e. AREA OF OPERATION

BEML being a public sector undertaking operates well in the global market. The companys
international divisions are involved in large trading as well as counter trade in countries

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worldwide covering Asia and Middle East besides entering into European market through UK,
Italy and Greece. The company commenced its overseas operation in 1969-70 and has exposed
earth moving equipments, rail coaches and spare parts valued at several million US $ to countries
all over the world.

As a recognized export house, BEML has expanded operations to include exports of engineering
goods, defence items commodities and undertaking of project management and turnkey
contracts. Despite the pressure of highly competitive market for heavy constructions and mining
equipment, BEMLs export is attributed to good quality equipment and very efficient after sales
services. Fully satisfied with BEMLs services, customers in several countries have been placing
repeat orders for the companys equipments.

The company is looking at global market for future growth several countries have been
identified formaking a foray, In keeping with this; the export target for the year 2006-06 has
been fixed at over Rs.120 crores which is stiff considering the strong foothold of competition in
the world market. Exports were made to countries like:

1. Algeria
2. Bulgaria
3. Baharain
4. Italy
5. Morocco
6. Tuniisia
7. Syria
8. Zambia
9. Pacific Island
10. United Kingdom
11. United States Of America
12. Russia
13. Austria
14. Brazil

BEML has 15 District offices, 10 Regional offices and 4 Overseas offices.

Regional offices

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Bangalore, Hyderabad, Mumbai, Newdelhi, Sambalpur, Bilaspur, Kolkata, Nagpur, Ranchi and
Singrauli.

District offices

Ahmedabad, Asansol, Bhilai, Bhuneshwar, Chadrapur, Dhanbad, Guwahati, Jammu, Madurai,


Neyveli, Panaji, Ramagundam, Kothagondem, Hospet and Udaipur.

Overseas offices

Brail, Indonesia, China and Malaysia.

f. OWNERSHIP PATTERN

The BEML LTD is a premier public sector company in India under the ministry of defence. The
board consists of a whole time chairman and managing director, five functional directors holding
responsible position with vast varied experience. All of them are nominated by the president of
India and appointed by shareholders.

The part time directors include two from the ministry of defence, one from the ministry of
railway, one from ministry of coal and mines and another from he government of karnataka.

BOARD OF DIRECTORS

Shri .V. RS. Natarajan - Chairman and Managing Director

FUNCTIONAL DIRECTORS

Shri P.R. Naik - Director (Defence)

Shri C.N. Durgesh - Director (Mining & Construction)

Shri .P .Dwarakanath - Director (Metro & Rail)

Shri. M. Pitchiah - Director (Finance)

Shri .M. Nellaiappan - Director (Human Resource)

Shri ,M .Nellaiappan - Director (Human Resource)

OFFICIAL DIRECTORS

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Smt. RashmiVerma
Jt .Secretary ( Missile Systems), Ministry of Defence
Shri .P .K. Mishra
Jt. Secretary & Addl Financial Advisor, Ministry of Defence

INDEPENDENT DIRECTORS

Shri .M .B. N. Rao


Shri .J .P .Batra
Shri .J. P.Singh, IAS(Retd)
Dr(Smt) RekhaBhargava
Lt. Gen(Retd) Noble Thamburaj
Shri KanwalNath
Shri Ramesh Bhat

g. COMPETITORS INFORMATION

BEML LTD is facing competition from Multinational companies and Domestic Industries such
as

Hindustan Motors
Caterpillar India Limited
Larsen and Tourbo
Escorts
Ashok Leyland
Integral Coach Factory
Rail Coach Factory
Hitachi
Volvo-Swiss

h. INFRASTRUCTURAL FACILITIES

In order to meet the demands of heavy earthmoving equipments, rail coaches and heavy duty
trailers, BEML has established units at BANGALORE, KGF and MYSORE. These units are
equipped with sophisticated manufacturing facilities.

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KGF COMPLEX

Kolar Gold Fields, located 100 kms from Bangalore, spread over an area of 1850 acres; BEML
has established an extensive manufacturing base. A skilled work force of over 7400 turnout
state of the art bulldozers, hydraulic excavator, wheel loaders, rope shovels and walking
draglines for mining and construction industry. Sophisticated CNC machines and latest
technology welding equipment have been installed.

1. Medical Facilities

Special emphasis is being laid to provide medical facilities to the employees and their
dependents. Modern medical centre has been established. BEML also provides Post Retirement
medical benefits to its retired employees.

A modern medical centre has been established with the following infrastructure.

General Medicine
General surgery
Clinical Pathology
Radiology
Dental surgery
ENT
Physiotherapy
Pediatrics

2. Canteen Facility

BEML provides good canteen facility to its employees. There is bifurcation of canteen between
workers and executives.The food provided is hygienic and of high quality. The price charged for
food, tea, coffee and snacks is very low.

EXECUTIVE CANTEEN

Meals 3.00
Tea 0.70
Coffee 0.85

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Breakfast 1.00

WORKERS CANTEEN

Meals 2.40
Tea 0.50
Coffee 0.70
Breakfast 0.80

BANGALORE COMPLEX

BEML started railway equipment division at Bangalore in 1964. This unit is spread over an area
of 200 acres. It has a production capacity of over 800 coaches per annum and has work force of
4500 employees.

MYSORE COMPLEX

The biggest dumb truck factory in India is located at BEMLs Mysore complex. This unit is
located about 180 kms from Bangalore and occupies about178 acres of land, having a work force
of about 2500 employees.

i. AWARDS AND ACHIEVEMENTS

There are many awards achieved by BEML LIMITED till now, some of them are listed below:

CMD received the 'SCOPE Award for Excellence and Outstanding Contribution to
the Public Sector Management - Medium PSE CategoryD' for the year 2006-07.

CMD received the 'BEST PSU AWARD' instituted by India's leading B School,
Indian Institute of Planning & Management held at Bangalore on 25th March 2009 .

Southern Region of EEPC India awarded BEML with 'Silver Shield' for Star
Performer as a Large Enterprise for its outstanding contribution to Engineering Export
held at Trivandrum on 11th February 2009.

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CMD received the 'Raksha Mantri's Award for Excellence' for 'Best Performance
in Exports' held at New Delhi on 7th November 2008.

CMD received the 'ROTARIAN AWARD' of Vocational Excellence in their District


Conference held at Bangalore on 9th February 2008.

CMD received the 'BEST CEO AWARD' from Mr. SK Sharma, National President ,
Indian Institute of Materials Management (IIMM) on 30th November 2007 at
Chandigarh.

Conferred Star Performer Award by Engineering Export Promotion Council,


Southern Region on 24th November 2007.

Received 'Golden Peacock Award for Innovation Management' from Institute of


Directors on 14th January 2007.

Awarded UDYOG RATAN AWARD (Gold Trophy) by Institute of Economic


Studies, New Delhi, during October 2004.

Award for The Largest and Most Profitable Construction Equipment Company -
1st rank from construction world NICMAR 2007.

j. WORK FLOW MODEL (End to End)

A nationwide network of 33 marketing offices customer with immediate access to BEMLs


range of products and services. Marketing activities include field operations and intensive
traning of customer personnel in operation and maintenance of equipment.

Recommendation-for-user-profit (RUP) studies enable customers to improve machine


productivity and reduce operating costs. BEMLs marketing strength has enabled it to achieve a
share of over 70%.

Production Planning

Material Management

Stores (spares and Raw materials)

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Production control department

Assembly Department

Testing

Packing

Customer site

Productions planning are done at corporate office. This sent to all the
departments in BEML. This is usually done in the month of January
base on previous years sales. The Material management department plans
for the raw material and spares required sends requisition to Finances
department for approval for purchases. Once the material is purchased it is
inspected and stored in different stores. The production control
departments plans for numbers of Equipment to be manufactured and
supplies the required spare part for the equipment to be manufactured and
supplies the required spare part for the assembly of the Equipment to
Assembly Department where they are assembled and painted. Later the
equipment is tested at the factory and packed and delivered to customer.

k. FUTURE GROWTH AND PROSPECTUS

At BEML, people are the prime movers.The bygone year had left an indelible foot-prints to
make BEML a more proud performer and set new mile-stones in the history of the company.
The company received Rs.318 cr order for supply of Metro cars to Jaipur Metro project.

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The company is materializing all the plans and objectives of the company for
development, diversity and the corporate goal of achieving Rs.5000 cr turnover doing
2012-13.
Aerospace Manufacturing complex, the 10th factory of BEML, to go operational.
Track laying business to put on track as yet another diversified business.
Gear-up Dredging business to yield high volumes in turnover.
New projects like High speed trains and Wagons for the dedicated Freight Corridor.
Corporate plan-II envisaging a sales turnover of rs.10000 cr.

3. MCKINSEYS 7S MODEL
All the 7s
1. Structure
2. Skill
3. Style
4. Strategy
5. System
6. Staff
7. Shared values play a vital role for the success of any organization.

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The 7s framework of Mc Kinsey is a management model that describes 7 factors to organize a


company in a holistic and effective way. The two persons who developed this model are Tom
Peters and Robert Waterman were consultants at Mc Kinsey and Company. They published
their 7-S model in their article Structure Is Not Organization (1980) and in their books the
art of Japanese management (1981) and in search of excellence (1982).
The McKinsey 7S model was named after a consulting company, McKinsey and Company,
which has conducted applied research in business and industry. The McKinsey 7S Framework
was created as a recognizable and easily remembered model in business. The seven variables,
which the authors term "levers", all begin with the letter "S". These seven variables include
structure, strategy, systems, skills, style, staff, and shared values

Those seven elements are distinguished as hard Ss and soft Ss. The three hard elements are
feasible and easy to identify. They can be found in strategy statements, corporate plans,
organizational charts and other documentation.

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The four soft Ss however, are hardly feasible. They are difficult to describe since capabilities,
values and elements of corporate culture are continuously developing and changing. They are
highly determined by the people at work in the organization.

1. Structure

The structure of organization represents the hierarchy of the organization. It represents the
reporting system of the organization. Thus the organization structure is the pattern of relations
among various components or parts of the organization.

Structure of the company

The organization structure of BEML is Pyramid cal and Bureaucratic. It has highly routine
task, much formalized rules and regulations, tasks that are grouped into financial departments,
centralized authority, and decision making that follow the chain of command and an elaborate
administration structure with a sharp distinction between line and staff activities.

Shareholders

Minister of Defence

Chairman and Managing Director

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Directors

Executive Directors

Chief General Manager

General Manager

Deputy General Manager

Assistant General Manager

Senior Manager

Manager

Assistant Manager

Engineers

Assistant Engineers

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Senior Supervisor

Supervisors

Joint Supervisors

Deputy Supervisors

Employees

Group A - E

2. Skill

Skill is needed to carry out the companys strategy. Every individual pose individual skill or
capacity within which he can carry out his functions effectively. Each employee posses
different types of skills, which is hidden by him. So it is the work of the organization to
identify their skills and use it in the right way for the right purposes them effectively.

Even in this regard BEML has done well by identifying self development and communication
classes to increase their existing skills to further improvement and development of their
personality.

Methods of training

On the job training

Off the job training

On the job training:

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This is considered to be the most effective method of training the operative personnel. Under
this method, the worker is trained at his workplace. This enables them to get training under the
same work conditions and with the same processes, materials and equipment that he will be
used ultimately.

Types of the job training

Internship training

Special projects and tasks

Induction training

Off the job training

Off the job training means that training is not a part of everyday job activity. The actual
location may be in the company classrooms or in places that are owned by the company or in
universities, associations that have no connections with the company.

Types of off the job training

Lectures
Conferences
Group Discussions
Case studies

3. Styles

Style is the leadership approach, also the way in which the organization employees present
themselves to the outside world, to suppliers and customers. In simple words, style is a pattern
of behavior, which a leader adopts in influencing the behavior in the organization.The
company employees share a common way of thinking and behaving. Leaders establish unity of
purpose and direction of the organization. They create and maintain the internal environment in
which people become fully involved in achieving the organizational goals.

The style of the organization is to look towards the employees requirements and provide other
additional welfare and safety facilities to improve and develop the individual i.e. the employees
and also for the development of the company.

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STRENGTHS OF BUREAUCRATIC STYLE

Achieve efficiency through specialization.


Encourage development in inter functional co-ordination support.
Centralized strategic decision making.

4. Strategy

The strategy of BEML is to satisfy its customer by providing better products and giving service
to its customer by sending one of the operators from BEML with the equipment, which has
been purchased by them. Until the warranty period, the operator stays in the premises of the
equipment to look after its day-to-day working. In this way, BEML provide better customer
service for the customer.

To impact career development plans its employees skills and knowledge to the changing
technology to improve its productivity, quality, efficiency and also to increase moral of the
employees so the company has undertaken the work of giving promotions to each and every
employees based on the qualification and experience so as to contribute to the organization
goals and objectives. To adopt advanced technology to beat its competitors and to produce the
products of expected targets.

Most important strategy adopted by BEML is the Elimination of Waste. Waste can be
eliminated in many ways, which include

Effective Designing
Proper Planning
Production Planning

5. System

A system defines as a process or a step of processes those links and orders activities to enable
work to be done in order to achieve the goals. System in simple words is the formal and
informal procedure including compensation systems, management information systems and
capital allocation systems that govern everyday activity. Identifying, understanding and
managing process as a system contributes to the organization effectiveness and efficiency in
achieving its objectives.

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Earth moving is computerized industry today. Complexities relating to selection and


production of equipments, cost analysis, critical path method scheduling, preventing,
maintenance, major repairs all have been simplified too much closed limits; computers have
saved expensive men in material control and in many other applications. The most successful
preventive maintenance program of the near future will be controlled from office by the person
using the computers as a tool for decision-making.

ERP SYSTEM

The entire operations of the company are now managed through ERP/SAP.
Any activity is on-line intended to improve controls, increase efficiency and reduce
costs.
Personnel have been trained and in turn they are required to train others.
All employees/officers are required to adopt themselves to the working accordingly.

6. Staff

Staff means that the company has hired people, trained them well and assigned them to the
right jobs for which they are best suited according to their qualification, skills, knowledge and
experience.

Staff is one where employees work together under the control and direction of one department
head who guide them in their routine business. An enterprise may have a comprehensive
business plan, a sound organization structure, but it cannot accomplish results as per plan
without effective staff in the company. So BEML has maintained good staff relations among
the employee and also among the officers by directing and providing all guidance and
responsibilities, In this way the company achieves its objectives by placing right people for the
right jobs for which they are best suited and one supervisor or officer to guide and control the
workforce.

7. Shared values

Values are the identity by which a company is known throughout the business arena. These
values must be explicitly stated as both corporate objectives and individual values. A shared
value is an essential characteristic or attribute promoted by the organization to motivate the
behavior of members of the organization.

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The main motto of BEML is Strive to up-grade quality and operational efficiency
continuously.

The values shared by the employees of BEML are:

Respect for individuals


Customer orientation
Leveraging technological development
Desire for excellence
Ethical way of doing business

4. SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as Strengths (S) or
Weaknesses (W), and that are external to the firm can be classified as Opportunity (O) or
Threats(T). Such an analysis of the strategic environment is referred to as SWOT analysis. The
SWOT (Strengths, Weakness, Opportunity and Threats) analysis has been a useful tool for
industry. The SWOT analysis is effectively used as a Decision Making Aid while planning new
vocational programs.

The process of utilizing the SWOT approach requires an internal survey of strengths and
weakness of the program and an external survey of threats and opportunities. Structured
internal and external examination is unique in the world of curriculum planning and
development. It is a useful way of examining current environmental conditions around program
offerings. A SWOT analysis looks at the future possibilities of the institution through a
systematic approach into both Positive and negative concerns.

It is relatively simple way of quickly expanding their vision. Probably the strongest message
from SWOT analysis is that, whatever the course of action is decided, decision-making should
contain each of the following elements: Building on Strengths, Minimizing Weaknesses,
Seizing Opportunities and countering Threats.

STRENGTHS

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It is about what advantages the company has over others and what the company can do better
than anyone else. The strength of BEML is:

1. It is Asia's second largest manufacturer of earth moving equipment.


2. It is also a multi-technology company offering high quality products for diverse sector.
3. A well equipped R&D centre makes it possible to design and develop new and innovative
products.
4. BEML is networked well with 10 regional offices, 15 district offices and 4 zonal service
centers with talented, qualified and trained workforce for sales and service.
5. It has certified as ISO 9000.

WEAKNESS

Weakness in better terms is referred as what the company could improve, what it should avoid
and what the people in the market likely to see as weakness. BEML has some weakness in the
following areas:

1. The ministry of defence who takes the advantage of decision making where people of
strategic level lack in making decision.
2. It depends on imported raw material.
3. The only customers are Indian railway & defence where this products are for defence &
railways.
4. The cost of manufacturing in railways coaches is high.
5. The promotion strategy is not much used where it depends highly on government customers.

OPPORTUNITIES

Opportunities are the external advantages, which are beneficial to the company. Some of the
opportunities of BEML are:

1. Grow profitably by taping the opportunities in National and International markets.


2. The competitors for BEML is limit as the wide range of products to character different needs
of customers.
3. The railways dedicated freight corridor would throw open huge business opportunity for the
company.

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4. As the company is an ISO certified company it bangs the order or tenders outside the
company.

THREATS

Threats are the obstacles, which the company faces by external environment in its process of
development. The threats in the way of BEML are:

1. The entry of many new players in the field of railways, power, heavy machinery, earth
movers pose a threat to the organization.
2. Fragmented market dominated by a few large player.
3. To adapt the technological changes with more features can adversely affect the company.
4. Changes in the regulatory framework that could adversely affect the company.

5. ANALYSIS OF FINANCIAL STATEMENT

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