Professional Documents
Culture Documents
Bel Internship Final PDF
Bel Internship Final PDF
Bangalore University
Submitted by
S.NARMADA
Senior Lecturer
2009-2011
CERTIFICATE
has not been submitted to any other university or institution for the
Dr. M. S.Ramachandra
Director- DSCMIT
Place: Bangalore
Date: 19-08-10
STUDENT DECLARATION
Ms. S.NARMADA. This has not been submitted for the award of any
09CQCMA061)
GUIDE CERTIFICATE
of this report has been submitted for the award of any other
degree/diploma/certificate.
Lecturer
PREFACE
Bharat Electronics Limited (BEL) established in 1954 with its corporate office at Bangalore
has nine units in the country. It is engaged in the design development and manufacture of
sophisticated state-of-the-art electronics equipments/components for the use of defence
services, Para military organisations and other governmental users like All India Radio,
Doordarshan, Department of Telecommunications, Police Wireless, Meteorological
Department, etc. The BEL is also the premier indigenous source for professional electronic
equipment.
ACKNOWLEDGEMENT
This study of mine has taken the co-operation assistance and understanding of some
respectable and thinkable people. I express my sincere gratitude through this simple
acknowledgement to the participants of this study.
S. NARMADA
CONTENTS
CHAPTER 1: INTRODUCTION
APPENDIX
BIBLIOGRAPHY
CHAPTER 1
INTRODUCTION
1. INTRODUCTION
In history we learn that man hunt and plucked fruits for his living. He did it himself without any
assistance. Other male members of the family did the same. The women in the family had to stay
home as they gave birth to children and also had to look after them. This might be a beginning of
division of labour. Naturally, this division of labour was based on the principle of convenience,
which later became the family organization pattern.
What we call today an organization is a group which is or has got organized for a common
purpose. The group which has an organized structure came to be known as ‘organization’.
Organizations have become so much a part of our life that we do not notice that the hospital
where we were born, the school where we studied, the market where we buy vegetables, the
clothing which we wear, the roads that are built by local self Government have been made
possible by organized group efforts. The groups were given expressed or implied permission to
act as an organized body and, therefore, got converted to organizations.
So, organization can be defined as, “a social unit of people, systematically arranged and
managed to meet a need or to pursue collective goals on a continuing basis. All organizations
have a management structure that determines relationships between functions and positions, and
subdivides and delegates roles, responsibilities, and authority to carry out defined tasks.
Organizations are open systems in that they affect and are affected by the environment beyond
their boundaries.”
IMPORTANCE OF AN ORGANIZATION:
CHARACTERISTICS OF AN ORGANIZATION:
Organization is an effective and necessary instrument for the attainment of predetermined goals.
The following are the main characteristics of the organization.
➢ Set up in Bangalore in 1954, BEL has grown into India’s foremost defence electronics
Company, a Navratna Public Sector Unit under the ministry of defence.
➢ BEL is a multi-product technology unit Conglomerate boasting of over 350 products in the areas
of Military Communication, Radars, Naval Systems, Telecom and Electronic Warfare, Tank
Electronics, Electro Optics, Professional Electronic Components and Solar Photovoltaic.
➢ BEL also provide turnkey System Solutions.
➢ BEL’s Customers include the Army, Navy, Air force, Paramilitary, Police, Doordarshan, All
India Radio, department of Telecommunication.
➢ BEL maintain technological leadership with its in- house Research and Development and in
association with DRDO Labs (Research Institute near HAL)
➢ The Company spent 5.26 percent of its turnover on R&D supplies to the defence sector
constituted 85% of sales, balance 15% being supplies to Civilian Sector. All the nine
manufacturing units of the company have performed well and earned profits.
➢ EXPORTS:
manufactures systems for 3D Surveillance, Secondary surveillance, fire control and battle
field surveillance. For Naval applications Radars offered are in the Navigational, Fire
control and Surveillance categories. In Civilian category BEL offers radars for Air
Traffic Control. The frequency bands covered extend from C band up to Ka band. BEL
also offers Networking of Radars
During the year 2006-07, BEL earned the distinction of becoming the first Defence PSU to
acquire operational MINIRATNA CATEGORY-I status. This enhanced status will provide BEL
certain operational autonomy in the areas of capital investment, establishment of Joint Ventures
etc.A number of initiatives were taken to diversify the business of BEL and secure orders. In
September 2007, BEL won a tender of Rs 18 crore from Andhra Pradesh Government towards
establishing a network (APNET) for state-wide broadcast and communication up to district/block
level. The hub has been commissioned and the terminals are in various stages of completion. The
Andhra Pradesh Government has now invited BEL to give a proposal for Phase II of the project
to cover the whole State. The value of Phase II will be around Rs.40 crore.
BEL has also been awarded a Satellite Network tender by Andhra Pradesh Beverages
Corporation Limited (APBCL). APBCL negotiated the price with BEL for using the common
infrastructure of APNET at the Hub. The main application is for consolidating the sales
transactions on-line by 31 remote centres with the APBCL headquarters on the BOOT model.
BEL has been selected through competitive tendering by the Ministry of Home Affairs to
establish a countrywide network called POLNET on turnkey basis. The project includes 11 M
Hub at Delhi, 40 high capacity VSAT terminals for the State Headquarters and major cities, 833
low capacity VSATs at District Headquarters and Block levels. The negotiations have been
completed and the order valued at Rs 97 crore, is in the final stages of processing. POLNET will
enable effective communication among Police Forces of various states, exchange of police data
files and fingerprints and Video Broadcast & Conferencing.BEL secured a large number of
orders for the LED based Solar Traffic Signals in Bangalore, Hyderabad and New Delhi etc.
BEL and Indian Space Research Organization have entered into an understanding for cooperative
efforts to meet the growing demands of satellite manufacture in India. Satellite Electronics
Payload (Transponders)- a major part of any satellite will be manufactured by BEL for
integration with the satellites to be launched by ISRO. BEL has also commenced manufacture
and supply of solar-based mini power plants, the first of which has been installed in a technology
foundation in New Delhi.
The business environment of BEL includes both internal and external environment
The internal environment includes its manufacturing units in different locations and their
operations. They are:
NINE MANUFACTURING UNIT:
The external environment includes suppliers, customers, competitors, government and other
agencies.
I. COMPETITORS: Multinational companies like ITI, ECIL, IL, ALPHA, UTL, Siemens,
Fibcom, SCL, INTEL, Spectronics, Southern Electronics and Ashoka engineering.
II. CUSTOMERS: BEL’s Customers include the Army, Navy, Air force, Paramilitary,
Police, Doordarshan, All India Radio, department of Telecommunication.
SUPPLIERS:
Focused nurturing and monitoring of R&D is one of the top priority tasks at BEL. Allocation of
funds for R&D is being enhanced to cater for the new infrastructure requirements of R&D
divisions and for undertaking many proactive R&D projects. BEL R&D divisions will have
active interactions with DRDO, other Indian public & private design houses, academic
institutions and also with foreign partners for joint development programmes. Planning and
monitoring process in R&D is being upgraded in order to improve the product and technology
development cycle times.
CHAPTER-2
BEL has state- of- the art infrastructure and a highly trained workforce at its 9 units.
The total manpower of company is 11,961 (as on 31.03.2009), comprising 4,476
executives, 728 technical Cadre personnel and 6,757 non-executives
(3,177- engineers& scientists) company has 2,507 women employees.
Nearly 85% of company’s annual sales turnover accrues from products sold to the
defence services.
BEL achieved exports of US $ 17.77 million in 2008-09. To increase exports, the
company is promoting contract manufacturing and tapping business opportunities
generated via offset implementation.
The company’s turnover has been on a steady rise. During 2008-09, BEL achieved a
turnover of Rs. 4624.09 crores.
BEL has been making profits continuously for more than four decades and recording its
shareholders with handsome dividends.
2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION:
➢ The Company was incorporated starting with Bangalore unit. The
Company Manufacture electronic communication equipments such as HF/VHF
Communication transmitters and receivers, HF/VHF microwave radio relays
And radars, electronic components needed mainly by Defence services and
also by the entertainment industry like radio, TV, etc. The Company received
progressive
Self reliance in the areas of radio communication radars, broadcasting components.
➢ The Company devotes considerable effort to deliver state-of-the-art equipments to
defence users.
➢ 1985: 4,30,000 shares were issued to the President of India.
➢ 1986: 1, 10,000 shares issued to the President of India.
➢ 1987: Some of the major accomplishments in the design and development activities were
Cyclone warning radar for Indian Meteorological Department, Multiple target field
artillery radar for Army.
• Components like a vapour cooled 45KW transmitting tube, ICS and HMCs for
telecommunication applications and a variety of types of transistors were introduced in
the market. 1,10,000 shares issued to the President of India
➢ 1988: - The Company developed a 10KW TV transmitter, system design of the Central
Production Centre at New Delhi for Doordarshan, solid state FM transmitters and a new
generation of 10KW medium wave transmitters, 120 channel UHF digital radio relay
equipment for the Department of Telecommunications.
➢ 1989: - 1, 10,000 shares issued to the President of India.
➢ 1990: The Company entered into the Satellite Communication and simulators segments
of business and widened the export base both in terms of market and products.
• The Company introduced indigenously developed automatic test equipment for the army,
ship handling simulators for the Navy, low capacity 40 line electronic exchange for rural
applications and high reliability semi conductor devices for space applications
with GE Medical Systems and formed GE BE Private Ltd., for manufacturing a High End
Rotating Anode Medical Diagnostic X-ray Tube called CT MAX used in CT Scanners.
• The debentures were issued on private placement basis: 16,00,000-15% Non-convertible
debentures of Rs 100 each. (Redeemable at 5% premium in four equal annum
installments starting from 11.9.1992).
• 4,00,000-15% Non-convertible debentures of Rs 100 each. (Redeemable in four equal
yearly installments at a premium of 5% starting from 3.10.1992).
• 15,00,000-14% Non-convertible debentures of Rs 100 each.(Redeemable in equal half-
yearly installment at a premium of 5% at the end of 7th, 8th and 9th years from the date
of allotment, the earliest date of redemption being 28.10.1995).
• 5,00,000-14% Non-convertible debentures of Rs 100 each. (Redeemable in three equal
yearly installments at a premium of 5% starting from 31.10.1995).
• 1,60,00,000 shares of Rs 10 each amounting to 20% of the subscribed and paid up capital
of Rs 80 crores was disinvested.
• The public sector Bharat Electronics (BEL) is firming up a joint venture with Multitone
of the UK to offer closed user group (CUG) paging services for the first time in the
country.
• Bharat Electronics Ltd. is talking to Raytheon for a teaming arrangement for airport
modernization systems.
• BEL will be setting up its first radar surveillance unit at the Calcutta airport and in
Chennai airport.
• The public sector Bharat Electronics Limited (BEL) unveiled its range of products
developed recently for the domestic market. The company has developed an alarm
system for unmanned level crossings, which would provide both audio and visual signals
of the arriving train.
• BEL has also developed conquest, an energy saver device, in technical collaboration with
an US technology invention company Condyne Technology. BEL is India's first defence
and professional electronics company to be awarded the ISO 9002 certification, the
benchmark of international quality.
• The public sector Bharat Electronics Limited (BEL) is now on the Internet, with the
website developed by the company's international marketing division.
• The company makes electronics for rocket and launch vehicles used by the Indian Space
research Organization (ISRO). Bharat Electronics signed a joint venture agreement with
Multitone Electronics Plc of UK to set up a joint venture company which will offer
mobile communication products for the workplace.
• The new company will be called BEL-Multitone Pvt Ltd. Bharat Electronics Ltd has
signed a joint venture with General Electric, a billion Fortune 500 company to
manufacture X-ray tubes and detectors.
• The venture company GE BEL launched its new X-ray 40,000 sq.ft tube facility at the
Export Promotion Industrial park, Whitefield on 19.11.97.
➢ 1998: Employees of Bharat Electronics Ltd. (BEL) in all the nine units nationwide went
on a one-day strike.
• Public sector Bharat Electronics Ltd's (BEL), Ghaziabad unit has bagged a safety award
of merit from National Safety Council, USA.
• This is for the first time any unit of BEL is winning this award. The company has
established a joint venture company with GE for the manufacture of medical systems.
• BEL is also diversifying into manufacture of silicon wafers by setting up facilities in
Bangalore.
• Bharat Electronics Ltd. (BEL) has entered into a strategic alliance with National
Semiconductor Corporation to build motherboards for personal computers around the
Media GX processor.
• Global avionics systems major Sextant Avionics has signed an agreement to transfer the
technology for liquid crystal display (LCD) systems for MiG 21 aircraft to public sector
Bharat Electronics Ltd.
• Hindustan Aeronautics Ltd. (HAL), and Bharat Electronics (BEL), Bangalore, are among
the six winners of the 1998 national awards for outstanding achievements in research and
development (R and D) in different areas of industry.
➢ 1999: BEL Multitone is a 51:49 joint venture company of Multitone Electronics, UK and
BEL. Bharat Electronics (BE) Ltd. is setting up an integrated circuit (IC) design centre at
its manufacturing unit in Jalahalli near Bangalore in associated with a US partner.
• Bharat Electronics, a professional’s electronics company, which has found success in its
increasingly popular microprocessor-based electronic voting machine (EVM), has
supplied a state-of-the-art microprocessor based 1 kVA solar power supply unit to power
a rural information technology network.
• BEL also set up an Integrated Circuit design centre and another plant to manufacture
polysilicon cell which harnesses solar energy during
• The past few months at its existing facility in Jalahalli.
• The company has diversified its operations at the Taloja unit in Maharashtra which was
producing glass shells for black & White television tubes.
• The company had tried to raise some funds for setting up the colour picture tube units
Company’s Goals:
Business Mission:
Growth:
To ensure a steady growth in business so as to fulfill national expectations from BEL and expand
international operations.
Profitability:
Customer Focus:
To build a high level of customer confidence by providing increased value for his money through
international standards of product quality, performance and superior customer services.
People Orientation:
To enable each employee to achieve his potential, improve his capabilities, perceive his role and
responsibilities and participate and contribute positively to the growth and success of the
company, to invest on human resources continuously and to be available to their needs.
Technology:
➢ BEL has joined the “Global Compact” of United Nations and has committed to support it
and set up core values enshrined in its nine principles. The “Global Compact” is a
partnership between the United Nations, the business community, international labor and
NGO’s. It provides a forum for them to work together and improve corporate practices
through co-operation rather than confrontation.
➢ In a letter to UN Secretary General, Mr. Kofi Annan, CMD, BEL has committed to
support the Global Compact and set of core values enshrined in its nine principles in the
area of Human Rights, labour Standards and Environment.
Human Rights
➢ Business should support and respect the protection of internationally proclaimed human
rights; and
➢ Make sure they are not complicit in human right abuses.
Labour Standards
➢ Business should uphold the freedom of association and the effective recognition of the
right to collective bargaining;
➢ The elimination of all forms of forces and compulsory labour.
➢ The effective abolition of child labour and Elimination discrimination
Environment
➢ Business should work against all forms of corruption, including extortion and bribery.
• Company has changed the name of its subsidiary from BE -Delft Electronics Ltd to BEL
Optronic Devices Ltd.
• BEL became the first PSU to be adjudged 'The Best Company' for
2002-03 by the Bangalore Stock Exchange.
• BEL received order from TN government to supply, install and commission the 2 GHz
120-channel Digital Microvave communication system on turnkey basis.
• Company formulates its vision statement targeting to a turnover to 50,000 million.
• Mr.S.Paneer Selvam, Senior Technical Assistant in BEL's Naval Systems Strategic
Business Unit has received Prime Minister's Shram Shri Award for the year 2003.
• Dr V K Koshy, Chairman & Managing Director of the company resigned and GOI has
appointed Mr Y Gopala Rao as Chairman & Managing Director on the Board of
Directors
➢ 2004:
➢ Bharat Electronics gives order worth Rs 8.9 Cr to Astra Microwave.
• Bharat Electronics Ltd has informed that Mr. K. U. Limaye, Director, Electronics &
Radar Development Establishment, Bangalore has been appointed as part-time Director
on the Board of Directors of Bharat Electronics Ltd in place of Mr. N. Divakar, who has
since retired.
• Bharat Electronics Ltd has informed that the Comptroller and Auditor General of India
(C&AG), has recently appointed the following firms as Statutory/Branch Auditors of the
company for the year 2003-04:
• Statutory Auditors: M/s Suri and Co (Statutory auditors, HO, Consolidation of accounts
and auditors for Bangalore, Chennai and Hyderabad units).;
• Branch Auditors: M/s Bubber Jindal & Co.,(auditors for Ghaziabad, Panchkula and
Kotdwara Units); M/s N V Sarmaand Co., (auditors for Machilipatnam Unit); M/s Joshi
& Sahney,(Auditors for Pune and Taloja Units).
• Shifts Registered office to new premises w.e.f. March 15, 2004. The address is as
follows: Bharat Electronics Ltd, Nagavara, and Outer Ring Road, Bangalore 560 045.
Tel: 080-2503 9300; Fax: 2503 9305.
• 2004: BEL, PicoPeta Simputers launch Amida Simputer, a hand-held computing device.
• PicoPeta Simputers Pvt Ltd and Bharat Electronics Ltd (BEL) have launched the
Simputer handheld computing device for the enterprises called 'Amida Alchamy.'
• BEL CMD wins Electronics Man of the Year award.
• L&T and BEL join hands to develop radar for Army.
• Bharat Electronics Limited (BEL) signs agreement with Wipro InfoTech for
companywide implementation of My SAP Business Suite,
➢ 2005: BEL inks contract of .6m with Suriname.
• BEL declares 40% interim dividend for '04-05.
• BEL gets prestigious ICWAI Award.
➢ 2007: -Bharat Electronics Ltd has appointed Mr. N K Sharma as Director (Marketing) on
the Board of Directors of the Company. Prior to this appointment.
• Mr. N K Sharma has been holding the post of General Manager, heading the Ghaziabad
Unit of the Company.
• Bharat Electronics Ltd has promoted three of its general managers as Executive Directors
with effect from November 1
• Mr D.A. Mohan, ED (Telecom & Broadcast Systems) at BEL-Bangalore; Mr Anand
Kumar is ED (BEL-Ghaziabad); and Mr V. Sundararaman, ED (Technology Planning) at
the Corporate Office in Bangalore.
• Bharat Electronics bags IETE award for software development.
• Bharat Electronics signs 2 MoUs on Day 1 of Aero India 2007
➢ 2008: Bharat Electronics Ltd has informed that Government of India has appointed Lt.
• Gen P Mohapatra, Signal Officer-in-Chief, and Army Headquarters, as a part-time
official Director on the Board of Directors of the Company in place of Lt. Gen (Retd.) S
P Sree Kumar.
• Bharat Electronics to open Product Support Centre at Kochi.
• BEL receives SCOPE award.
2.4(b) FUTURE STATUS: BEL and Indian Space Research Organization have entered into an
understanding for cooperative efforts to meet the growing demands of satellite manufacture in
India. Satellite Electronics Payload (Transponders) a major part of any satellite will be
manufactured by BEL for integration with the satellites to be launched by ISRO. BEL has also
commenced manufacture and supply of solar-based mini power plants, the first of which has
been installed in a technology foundation in New Delhi.
New Business Initiatives:
New business initiatives during the year include:
• Appointment of M/s. KPMG, a global consulting firm, to help identify future market
opportunities for growth. Initial opportunities emerging from the KPMG study, for the
Company to venture into are:
• Infrastructure – Railways, Ports, Airports Homeland Security Nuclear Power
Instrumentation
• Energy Efficiency Solutions E-Governance Solutions.
• The Company is discussing with reputed foreign / Indian players for forming Indian Joint
Ventures in the areas of defence electronics, viz., Missile Electronics &Guidance Systems,
Microwave Super Components, Electro Optics, Airborne Electronic Warfare etc. Some of
these proposals are in the advanced stages of finalization.
• MoU signed with Bharat Heavy Electricals Ltd., to explore formation of a Joint Venture for
solar photovoltaic business.
• MoU signed with M/s. Boeing to jointly develop an analysis and experimentation centre in
India to offer customers the ability to make better-informed decisions in modernizing the
Country’s defence forces.
• MoU signed with Astra Microwave Products Ltd., for setting up of a Joint Venture for
microwave components.
• MoU signed with M/s. Selex Galileo for collaboration on Electronic Warfare programmes.
• BEL has been selected by M/s. Northrop Grumman Corporation for the manufacture of
components for Fire Control Radar for its Fighter Aircraft programme.
BEL will also capitalize on existing Core Competencies to diversify into newer green field areas
like the energy sector (wind, solar, nuclear), infrastructure- Railways and parts and e-
governance for enhanced growth in the coming years.
New products introduced and supplied during 2009-10 include:
✔ Advanced Naval Gun Fire Control System for P-28 class and ships.
✔ Gap measuring device.
✔ Perimeter Security Jammer
MAJOR MILESTONES:
1988- Plant inaugurated by Defence Minister.
1990- Self inspection status.
1993- Certification for ISO 9002:1987.
1997- Golden Peacock Award for Quality.
1997- ELCINA award for manufacturing.
1998- Certification for ISO 9001: 1994.
1999- Excellence in professional Electronic, Department of IT, Government of India.
2002- Corporate Research & Development award for ULSB MKII.
2003- Certification for ISO 9001: 2000 and ISO 14001: 1996.
2003, 04, 05- Strong commitment to Excel in CII Exim Bank business Excellence.
2005- Platinum award in IMEA-2005 by Frost and Sullivan.
2006- Certification for ISO 14001: 2004.
ORGANIZATIONAL STRUCTURE:
Hide links within definitionsShow links within definitions Formal and informal framework of
policies and rules, within which an organization arranges its lines of authority and
communications, and allocates rights and duties. Organizational structure determines the manner
and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated,
and how information flows between levels of management. This structure depends entirely on
the organization's objectives and the strategy chosen to achieve them. In a centralized structure,
the decision making power is concentrated in the top layer of the management and tight control
is exercised over departments and divisions. In a decentralized structure, the decision making
power is distributed and the departments and divisions have varying degrees of autonomy. An
organization chart illustrates the organizational structure.
• Asst. Manager.
• Senior Security Officer, Personnel Officer. Accounts Officer, Personal Secretary.
ORGANIZATIONAL STRUCTURE
GENERAL
MANAGER
AGM- PERSONAL
AGM- MARKETING
AGM- PRODUCTION
SA AGM-COMPUTER SYSTEMS
N
SENIOR DGM-QUALITY
M
O
M AGM-CORPORATE PLANNING
Y
O
R
VI
K AGM-FINANCE & AUDIT
H
A
JA
U
A
Y
M AGM-PUBLIC RELATIONS
N
A
C
R
R
H
A
A
M
A
G
C
M
O
N
H
.A
L
N
D
A.
N
A
V
R
A
E
G
A
Y
E
W
ES
N
N.
A
DG
AS
H
S
M
(NG
K
W
M
S-
A
M
(El
So
R
(T
(N
ect
na
G
R
ele
S-
ro
r
M
A
co
Ra
nic
&
(M
O.
m
sda
Co
ilit
C
r&
W
O mRGANIZATIONAL CHART BEL, BANGALORE (AS ON 1 MARCH 2010)
ar
Br
&
arf
ym
G
oa
Fir
ar
un
Co
M
edc
ica
m
(C
ast
Co
&
tio
m
om
ing
ntr
Av DAYANANDA SAGAR COLLEGE OF MANAGEMENT & IT Page 38
n
un
po
Sy
ol
ion
ica
ne
ste
Sy
ics
tio
nts
m)
)ste
)n)
m)
BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE
STRENGTH:
1. BEL has got modern manufacturing facilities with test instruments, set up at all units for
manufacture and supply of telecommunication equipment.
2. Research & Development set up with qualified manpower, suitable for technology
development or absorption.
3. Known for quality and reliability of its products.
4. Known for its prompt after sales service.
5. Vast experience in the manufacturing of electronic equipment. The parent unit
established in 1954.
6. Highly trained, professionally qualified manpower trained to deal in the latest
technologies.
7. Well established organizational structure.
8. Availability of Central Research laboraties at Bangalore and Ghaziabad working.
9. Young and dynamic top management at corporate level, ensuring stability.
WEAKNESS:
1. The main weakness of BEL is its being owned government of India under ministry of
defence. This makes decision- making slow.
2. BEL has been predominantly in defence sector, which has been monopoly business.
Hence, it does not have experience in managing, a competitive business like
telecommunication, equipment manufacturing.
3. Lack of flexibility in manpower management, especially in pay scale, promotion,
recruitment policy. Thus resulting in brain drain.
4. Lack of bold decision making in the area of investment and others due to fear of various
audits, both statutory and government in the mind of management.
5. Lack of accountability in top management, as personal stakes are not related with the
performance of organization.
OPPORTUNITIES:
1. Liberalization leads to opening of huge market. E.g. ITI, HTL etc.,
2. BEL can go for the technology transfer ties up and JV due to liberalization.
3. Various other companies are also modernizing hence creating new market for telecommunication
equipment railway, power sector, oil sector, Defence etc.,
4. Telecommunication Sector has been recognized as one of the important infrastructure sector
essential for the growth of the economy. This is resulting in the availability of potential market in
developing countries.
THREATS:
1. Entry of private sector and MNC in this field is making competition on very tough.
2. Due to overall reduction in import duties, the indigenous manufacturing and direct import are
competitive.
3. Imperfections in the market, leading to price wars and undercutting of prices, resulting in
sustained losses for telecommunication.
CHAPTER 3
DAYANANDA SAGAR COLLEGE OF MANAGEMENT & IT Page 41
BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE
In other words, Departments are the entities organizations form to organize people, reporting
relationships, and work in a way that best supports the accomplishment of the organization's
goals. Departments are usually organized by functions such as human resources, marketing,
administration, and sales. But, a department can be organized in any way that makes sense for
the customer. Departments can also be organized by customer, by product, or by region of the
world. Departments are usually led by a Manager, a Supervisor, a Director, or a Vice President.
In BEL I have done a detailed study about various departments such as:
• Production department
• Marketing department
• Accounting and Finance department
• Human Resource department
• Information Technology
The key production process and its key characteristics are identified through PFMEA (Product
Failure Mode & Effect Analysis) technique which is followed all over the world.
OTHER PROCESS IN PRODUCTION DEPARTMENT IS:
SIX-SIGMA:
A comprehensive and flexible system for achieving, sustaining and maximizing business
success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use
of facts, data and statistical analysis, and diligent attention to managing, improving, and
reinventing business processes.
This is the definition that will provide the foundation for our efforts to unlock the potential of Six
Sigma for your organization. The types of “business success” you may achieve are broad
because the proven benefits of the Six Sigma “system” are diverse including:
• Cost reduction
• Productivity improvement
• Market-share growth
• Customer retention
• Cycle- time reduction
• Defect reduction
• Culture change
• Product/ service development.
In 1998 BEL had adopted Six Sigma technique: Some of the Six Sigma project is completed
during 2008-09 is listed below:
5S / Workplace Organization:
• Sort through all items and remove unneeded items •In circuit
• Set in Order all remaining items, set limits, create temporary tester.
location indicators •Reflow Owen.
• Shine or clean everything and use cleaning as inspection •Wave
• Standardize the first 3 S’s by implementing visual displays Soldering
and controls Machine.
• Sustain the gains through self-discipline, training, •CNC
communication, and total employee involvement Machining
Centre.
Kaizen Implementation Event:
•CNC JIG
Boring
IMEC will facilitate a group of your employees through the 5S Machine.
process, implementing the techniques learned in the workshop. •CNC Turret
Normally, everything cannot be implemented during the two or Punch Press.
three day Kaizen event. Therefore, the team will develop an •Electroplating/
action plan with assigned responsibilities and expected Painting Plant.
completion dates to insure that the necessary follow-up takes •Walk in
place. Chamber/
Environmental
Benefits of the 5S System
Stress
• Improve Quality Screening
• Achieve work standardization Equipment.
• Decreased changeover time
• Improved safety
• Reduced storage costs
• Reduced cycle time
• Reduced machine down time
DAYANANDA SAGAR COLLEGE OF MANAGEMENT & IT Page 46
BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE
A. DEFENCE:
• Communications
• Radars-3D mobile radar, low flying detection radar, Tactcol Control radar.
• Naval Systems: radars, fine control system, communicator system.
• Opto Electronics
• Tank Electronics
• Simulators
A. NON DEFENCE:
• TV & broadcast
• DTH
• Telecom
• Simputer
• Electronic voting machine
• Electronic components.
PRODUCTS:
Products
• Radars
• Telecommunications
• Opto-electronics
• Information Technology
• Semiconductors
• Missile
• Akash missile
• Sonar’s
• CCS
• FCS
• Radar
• Simulators
• Tank electronics
• Defence Communications
• Solar systems
• Naval
Production is identified as a QMS process in the Quality Management System Manual. This
procedure elaborates the process defined in the QMSM as shown below:
a) PROCEDURE:
Receipt of enquiry
Vetting of enquiry (with the help of PC)
Rate estimation (with the help of MS & CC)
Conducting enquiry review and contingency plan to address risk
Sending Quotation
Follow up Quotation
Receipt of indent / supply order.
Verification of indent / supply order (with respect to quote)
Conducting Contract review and contingency plan to address risk.
Issue of Sale Order to concerned Dept (PC)
Prepare & issue of dispatch schedule to concerned Dept monthly.
Ensuring documents viz log books, UHB etc., accompany the product and same are
protected against loss or deterioration
Dispatch of finished goods to consignee in proper packing case as applicable.
a) PRODUCTION CONTROL:
Enquiry vetting
Receipt and study of engineering documents with regard to reducibility
Decide Make or Buy
Prepare production plan (based on Quarterly / yearly dispatches & sale order)
Issue production plan to concerned Dept.
Generate gross requirement of parts and issue to concerned Dept.
Preparation of process sheet (OARC)
Plan for special tools, Jigs and fixtures, consumables, handling boxes required
a) ASSEMBLY PLANNING:
a) MATERIAL CONTROL:
Provide inputs to purchase and sub contract for procurement (PR, SCR, and documents)
based on gross requirement. Receive, store and issue accepted Purchase / Subcontract
items.
a) PURCHASE:
a) SUB CONTRACT:
a) ASSEMBLY:
a) TESTING:
k) QUALITY MANAGEMENT:
Inspect parts (PPs, SCPs), Assembly, Sub assembly, Modules, Main Equipment
accessories at various stages of production cycle (AI & MI)
Offer equipment, spares and accessories for inspection and acceptance by customer
agency
Perform ESS activities ( passive) as per Product Quality Plan
Identify resources to meet the specific product SOP requirement
Hand over customer/QM cleared equipment to sales for dispatch
Periodic Process Audits / Vendor Audits
Maintenance of Equipment Configuration
Conduct Defect Investigation and plan CA, PA
Periodic performance checks of small tolls, ESD protection Aids/ Devices.
In BEL to work more effectively the finance department is divided into 7 sections which
look after entire unit are as follows:
Establishment Section:
➢ This department is concerned with wages, salaries, medical reimbursement, conveyance
reimbursement, tour advance settlement, and air fare settlement, payment of medical
expenses of retired employees, provident fund and gratuity.
➢ Apart from these activities the department is also concerned with recording and
maintenance of attendance, leave taken and over time work by each and every employee.
Here the department records time in and out of employee through the medium of
automatic time recorders provided at the vantage points within the factory.
department and collects the amount from the customers. Each customer is identified with
a unique customer code. This code is common to all the branches of BEL and is
identified by corporate office.
Company achieved a record turnover of Rs. 46, 240. 9 million during the year 2008- 09 as
against Rs. 41, 025.4 million in 2007-08 registering a growth 12.71% over the previous years
Export:
BEL’s relationship with global players like Boeing, Lockheed Martin and Thales is expected to
yield good business in the coming years.
Bankers:
Book Section
➢ This main work of this section is maintenance of general ledger and coordination with
other sections. It is also entrusted with passing journal entries, transfer entries passed by
the various sections of finance, and to ensure that proper code are used while passing the
codes. Because BEL follows the common code system for all its units, so that
consolidation of accounts will not be a big problem for them. In order to maintain the
uniformity of the codes BEL follows this system. This is also concerned with preparation
of budgets.
Costing and material Account Section:
(Rs in million
Materials 30,405.0 57.65
Employee Cost 7,557.9 14.33
Other Expenses ( Net) 2,641.8 5.01
Depreciation 1,056.0 2.00
Interest 107.7 0.20
Profit before tax 3,510.8 6.67
Total 2006-07 52,736.8 100.00
Sales & Services
DAYANANDA SAGAR COLLEGE OF MANAGEMENT & IT Page 60
BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE
➢ Coasting section in BEL is a part of finance department. The main task of this department
is to classify, accumulation assignment and control of cost. The information supplied by
this department has a great importance to the management in decision making. By cost
splits the management will be in a position to know where exactly wastages is more, or
which method is causing runoff profits etc., it also prepares the cost estimates, based on
which the marketing department will make the bidding.
➢ Another important function of this section is preparing the price stock ledger and major
task of this section is to looks after the capital payments.
Cash Section: The main function is to account the cash and bank balance. Other than this
function the actual payment of money is done through this section. The employee’s salary,
contract labors wages, supplier’s amount and receipt of customer’s payment all are through this
section. Here the books maintained for cash and bank transaction are:
➢ Cheque drawn register
➢ Payment bank book
➢ Receipt bank book
➢ Payment cash book
➢ Receipt cash book
What is Audit?
The most general definition of an audit is an evaluation of a person, organization, system,
process, project or product.
Why Audit?
Audits are performance to ascertain the validity & reliability of information & also to
provide an assessment of a system’s internal control.
Goal of Audit:
Is to express an opinion on the person / organization / system etc., under evaluation based
on work done on a test basis.
How Audit is done:
• Traditionally audits were mainly association to financial systems.
• Recently auditing includes environment, quality etc.,
• It is performed by competent, independent & objective person known as auditors or accountants,
they issue auditor’s report.
• Due to practical constraints, to provide only reasonable accuracy the statements are free from
material error, it is true.
• It provides assurance for third parties or external users.
• Statutory Audit: Appointed by CAG Auditors. They audit whether funds are utilized. It
is mainly concentrated on the Act, Laws, rules which are statutory and take care of the
shareholders interest.
• Government Audit: Government Auditors are appointed by CAG Auditors. The scope
of Government is proprietary in Nate i.e. fund allocation
Internal Audit:
It acts as a watch dog of the various functions by continual observations and evaluation
of records, both financial as well as others. This section mainly functions as a service to
management. The main activity of internal audit is to physically verify the assets
➢ Manpower is the main resource for an organizations success in the market. And it is
necessary for a company to work efficiently for its success. The company management
should keep the employees happy so that the function of the company moves on without
any problem. For keeping the employee happy there are several benefits like allowances,
welfare measures, incentives, etc.
➢ To continually evolve new bench marks, resources, practices for ensuring effective
➢ Contribution of people towards achieving excellence.
BROAD OBJECTIVES:
➢ Attract, retain, develop, and remain effective and motivate human resource with the
required skills and competencies to meet organizational needs in tune with changing
business profiles and technological requirements.
➢ Maintain good industrial relations with high level of employee for better participation,
productivity and quality at work.
➢ Moving towards the concept of ‘variable compensation’ it would be effective by
developing and implementing new schemes for performance related pay, rewards and
benefits in line with comparable organizations and employees aspiration.
➢ Support and nurture an organizational culture and climate that encourage continuous
learning that enable the joint optimization of organizational goals and individual
potential.
➢ Making the human resource functions more effective and customer oriented using
Information Technology enabled systems.
➢ Bring in cost effectiveness in all human resources related operations and become self
sustaining in long run.
➢ To propagate, support and implement the principles of “Global Compact” to United
Nations.
GENERAL TERM AND CONDITIONS OF SERVICE:
➢ The following general terms and conditions of service apply to all the employees,
besides other rules and regulations that may be framed and notified by the
Classifications of employees.
BEL believes that performing work culture can be nurtured by leading a learning
objective.
Series education, training, self development and career development programme are
done for HR development.
Various activities done BEL to promote continuous learning.
1) Individual Learning:
• Internal / External Training, work experience, on the job training, job motivation.
1) Team Learning:
• Improvement projects, task force for specific task, seminars / conference.
1) Organizational Learning:
• Adoption of business Excellence model.
• Best practices from other units / industries
Punctuality: Computerized attendance
Accent on cleanliness in the work environment
• Engineering services department in all the units is responsible for ensuring good
housekeeping. Companies are certified to ISO 14001 environment management
system. Besides, good practices such as 5s and housekeeping award schemes are
implemented to promote a culture of cleanliness.
Uniform dress code for workers & officers:
• Officers right up to General Manager. The uniforms are provided by company which
includes washing allowance for maintenance.
Introducing practice like games / yoga common meal system for nutritious food is
provided at subsidized rates.
Unit has taken several initiatives for introducing innovative methodologies to improve
organizational response, customer satisfaction, enhancing productivity and morale of the
employees in continuous improvement activities.
Employment:
• Recruitment at Induction levels for non- executives:
i. VIII standard & above but less than SSLC
ii. SSLC
iii. SSLC + In company training minimum of 6 months.
iv. SSLC + ITI Graduates
v. Engineering diploma / post graduates.
• Executives:
Determination of merit maximum marks
Average performance index 35
Educational qualification 30
Depth of services in grade 20
Suitability 15
• Attendance bonus
• Payment towards subscription of newspaper to the executives
• Travelling allowance rules: For journeys on official tours within India, Model of travel
and entitlements. Daily allowance, Entitlement for long duration work assignments.
• Travelling Allowance on Retirement / Death of employee
EMPLOYEE BENEFITS:
a) Employee welfare fund: Established in all the unites with the object of undertaking
welfare.
• Educational facilities for the employees & their family members.
• The welfare fund management is managed by a committee consisting of representatives
of non- executives and management
• Management also contribute equal contribution of fund
a) Fine Arts Club / cultural committees: To tap and develop artistic talent among
employees. The company had constituted fine arts club of BG Complex and cultural
committees at various other units.
b) Sports club: Develop sports talent among the employees sports club / committees have
been established in the BG complex
c) Officers club: The company encouragement formation of officers club in the divisions to
facilitate the recreational and cultural activities of the officers and their family members.
Accommodation and other facilities are provided to the club. The company also provides
financial assistance for the functioning cities.
d) Supply of milk & vitamin tablets: Employees working in hazardous areas and as certified
by the plant medical officer are supplied with milk and vitamin tablets everyday.
SUPER ANNUATION:
Every employee shall be required to retire from service on attaining the age of 60 years. The
management may however on review retire any employee after he attains the age of 55years on
giving one and a half months notice or payment of the one and half month’s pay and allowance
in lie, thereof subject to necessary clearance including vigilance clearance
HOURS OF WORK
Every employee of the company shall be requires to work 48 hours a week.
OVERTIME:
The management reserves the right to require any employee to work overtime including work on
weekly holidays in accordance with the instructions issued from time to time and the employee is
also liable to be recalled for duty at anytime for such overtime, the work done, adequate
compensation by way of compensatory of overtime payment will be allowed of at the discretion
of the management
➢ The services of an employee may also be terminated by the company on the following
grounds, among others:
• On abolition of the post
• On being declared unfit for further service on medical ground.
• Conviction by a court of law for criminal offence amounting to moral turpitude.
• Employee engaging himself in other employment without the written permission of the
management or if he is found to have been working elsewhere during the period of leave
or off duty.
• Absence by an employee on grounds of sickness for a continuous period of more than 18
months if suffering from tuberculosis, leprosy, mental or malignant disease or fracture of
lower/upper extremity and six month or more if suffering from any other disorder on the
basis of the opinion of the medical board
Substitutes and Casual Employees with less than 240 days service, No
It is the process of searching for prospective applicants and simulating them to apply for
the job in an organization.
BEL has developed a standard form of procedure for recruiting the applicants them to apply for
the job in an organization.
➢ Requisition form to employment exchange
➢ Call letter for selection
➢ Call letter for trade/ technician Apprentices
➢ Offer of training for trade/ technical apprentices
➢ Offer for temporary employment
➢ Offer of appointment
➢ Offer of appointment for supervisors
➢ Acceptance form
➢ Joining Report
➢ Confirmation order for completion of probation
Source of Recruitment:
➢ In BEL, selection of applicants is done through the central recruitment committee. The
committee constitutes of corporate personnel departments in consultation with the
respective division.
Recruitment Policy:
➢ Recruitment was based on the order issued by the government of India. Reservation was
made available for physically challenged ex-servicemen, schedule caste/tribes and other
minorities.
Welfare:
➢ Welfare includes anything done for the intellectual, physical, moral, economic betterment
of the workers. It is normally done by the organization, over and above what is laid down
by the law of what is normally expected.
➢ In BEL, lot of importance is given to the welfare of the employees. Welfare facilities
provided to the employees are:
Uniforms and masks were given to employees and apprentice/trainees
Special incentives for family planning scheme
Overtime facilities
➢ The most important resource of BEL is its employees. They are provided with safe work
condition, detailed training in technical aspects of their jobs and also imparted knowledge
in areas like first-aid, fire fighting etc. A medical center with an ambulance service is
attached to BEL industrial complex and all workers are covered under BEL
Group Insurance Policy:
➢ The company also organized a number of programs in team building, organizational
development, productivity techniques and company information through a well- equipped
HRD center. Employees are provided with housing facilities just outside the factory, a
learning center and a canteen which serves nutritious and hygienic food. Employees are
kept informed about various activities through a monthly house journal.
HOUSE RENT ALLOWANCE (HRA)
➢ The HRA is given by the organization of the employees at the following rates:
Canteen
➢ Food which is basic necessity of human being is served in the company over the years at
a subsidized rates say about Rs 3 per day and it also serves nutritious and hygienic food.
And a special feature is that each and every employee has to wipe His / Her I.D. card in a
magnetic machine so that it is a way to identify the time of entry and exit to the concern.
This canteen also provides Tea/Coffee at least twice a day.
Trade Union
➢ In any industry we can see Trade Unions among workers. Trade Unions are a voluntary
organization of worker or employees formed protect and promote their interest through
collective actions. In BEL we can also find Trade Unions, which take care of employee
whenever issues are made against the employee. But the trade union in BEL includes
many educated workers so that the issues are settled within the factory. Top management
and trade union leaders come together and try to settle problem within the factory
premises.
Employee Participation in BEL: BEL believes in involving and empowering through greater
participation by giving them various opportunities.
• Some of the committees: Cultural, sports, safety, canteen, community centre, labour
welfare fund committee, death relief fund committee
• Quality circle in BEL was started in 1991 & has taken deep root
• Around 65 QC are active. The coverage of employees is highest among all units of the
company
• More than 85% of employees are the member QC
• Participation of QC in various competitions like yearly inter unit QC competition, CCI
competition & National QC competition give them immense opportunity to learn &
improve the process effectively
• An attractive award scheme was introduced in year 2002 for QC presentation &
implementation of solution generated
Benefits and rewards for employees in BEL: Compensation and benefits plans of BEL are
comprehensive. BEL enters with wage negotiation with Negotiating trade union periodically
according to the guidelines issued by department of public enterprises. Some of the rewards are:
JOB ROTATION: Unit has planned for rotation of 10% of its employee each year
➢ For any organization to carry out its sale activity efficiently and more effectively
what they need is a good marketing department. Marketing department deals with the all the
activities carried out by BEL. In the field of ceramic components BEL has a good stand in the
country and its sales are more. The duty of marketing department is to maintain all these records.
For doing so there are 8 employees, in which 5 employees deals with the disc insulators, 1
employee deals with the exerts of these insulators, 1 employee deals with other type of insulators
and other employee takes care of other ceramic products.
The activities carried out by marketing department are:
➢ Enquiry from the customer
➢ Acknowledge to that enquiry
➢ Offer-quoting of tender
➢ Negotiation
DAYANANDA SAGAR COLLEGE OF MANAGEMENT & IT Page 86
BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE
➢ Order
➢ Internal order allocation
➢ Market Exploration
➢ Order Booking
➢ Bidding
➢ Preparing the Annual Budget
➢ Projections
➢ Billing, Invoice and Dispatch
In enquiry there will be a qualifying requirement, which specifies certain condition for any
company to qualify for the offer that is capacity, assets involved etc, enquiry consists of
both commercial as well as the technical requirement terms.
Enquiry will go to engineering department for recommendation and approval of the
technical specification. If the engineering department thinks it is not possible to manufacture
according to that specification then marketing department will exchange a word of mouth
with the customers regarding issue and comes to a conclusion.
On the other hand, if the technical details meet with the available product then the
engineering department will give a green signal for the transaction which will be carried out
by the marketing department.
After the order is accepted the production is carried out according to the desired
specification. After production is over the company calls the customers for the inspection,
which may be conducted by the customers representatives or they may insist for the
company to go for internal inspection or they may send third party for the inspection.
After the inspection is over and if the product is found to be according to the required norms
then the customers will give the packing and dispatch instruction according to which the
company should go for the dispatch of the materials.
Once the dispatches of the products are sent according to their requirements then the
marketing department will follow up the payment if it is fewer amounts. If the amount is
more finance department will follow up. The marketing department also will keep in touch
with the customer to maintain good rapport.
Marketing Strategies:
This section provides broad overview of the plan for achieving the marketing objectives, and
ultimately, the organizational goals. Marketing strategy focuses on defining a target market and
developing a marketing mix to gain long run competitive advantages. Marketing strategy guides
the firm’s direction in relationships between customers and competitors.
Global Presence:
• Market Segmentation:
SEGMENTATION
Market Segment Customer Equipment % turnover(09-10)
Defence Army, navy, ULSB, STARS- 70
Airforce, ordinance VSMACT,SAW,
factories PRC / VRC
Ministry of Home BSF, CRPF, ITBP, BEST, HART, 05
affairs STF, STATE SMART
POLICE, SSB
Civil BSNL, MTNL, CDOT Exchange 20
Rail-Tel, CAPART
Other unit of BEL BEL-PK, BEL- MUX, FILLGUN, 15
GAZ Electronic warfare
• Marketing Targeting:
a. Need based customer
b. Segment Attractiveness
c. Segment Profitability
d. Segment Positioning
• Positioning:
Positioning is the act of designing the company’s product and image to occupy a
distinctive place in the minds of target market & customer to increase the sale of their
product. This goal is to locate the brand in the minds of consumer to maximize the
potential benefit to the firm at less time.
• Promotion:
Advertising, Sales promotion, Direct marketing.
• Competitive Analysis:
Productivity improvement
Effective utilization of machines
Human resource
Motivation of employees Export marketing
Since the IT sector has been introduced to the world it has become a key part in the day to day
functioning of the organization. Systems Department in BEL provides service to production and
other department in turn which helps in network infrastructure, mail transaction and virtual
private networks to connect other units and provides on-the-job training to employees.
➢ The culture of the corporate world is changing dramatically. The sources of power have
shifted from capital resource to human resource, from natural resource to knowledge
resource.
➢ We live in a world wherein there exists a perceivable gap between the present state and
desired state is it in the personal, professional and organizational scenarios.
➢ The pivotal role of HRD lies in helping management and employees alike in identifying and
narrowing the above gap through appropriate training. This constitutes the core of
contemporary HRD practice.
➢ So HRD is the process by which people are assisted in a continuous and planned manner to
develop their job competence, personality and other capabilities. It is the total all round
development of the people, so that they can contribute their best to the organization.
➢ HRD in the organization context is a process by which the employees of the organization are
helped continuously and planned way to:
Acquire or sharpen the skills required to perform their present and expected future roles
effectively.
Develop the general capabilities to discover and explore their own potential for their own
organizational developments.
Develop an organizational culture that encourages team work, mutual trust and freedom to
express one’s feeling and opinion so as to contribute to professional well being to employees
and organization.
➢ BEL considers its work force to be an asset of the company. It takes care of human
relationship in the organization.
Objectives:
Purpose:
➢ To impart necessary training, to continuously update the skills and knowledge of all those
managing, performing and verifying the quality of services. To impart resources into
company program’s for all the developmental programs. To consolidate into company
programs for the training needs identified from all the departments/section.
Scope:
➢ This is essentially limited to the product quality (that is general management, behavioral
management, technical and skill oriented programs). Training for safety related aspects
are given by the safely department and for quality related by the quality department.
Responsibility:
The responsibility of identifying the training needs of all individuals lies with the concerned
controlling officers/HOD and group heads. The responsibility of consolidating and
listing, in the order of priority, the program’s to be conducted, in order to impart the
necessary training lies the head of HRDC.
Development Programmes:
➢ Developmental programs are conducted for all categories of employees i.e., Executive,
Supervisors and Artisans. The company for this purpose invites faculty from outside.
Counseling Programmes:
➢ Counseling programs are undertaken for employees who are irregular to work,
uninterested in the work, etc. for this purpose, the company encourages suggestions,
group work etc., and hence motivate the employees.
Project Training and Visits:
➢ BEL encourages project training to students from different disciplines. This provides
training not only for the students, but the company also gets benefited through their
research work carried out as their curriculum.
Performance Appraisal:
➢ Performance appraisal is a process of supporting the use of human resources in an
organization effectively and efficiently. It is possibly management’s most powerful tool
in controlling performance and productivity of human resources in the organization.
➢ Performance evaluation and thereby performance appraisal at BEL is done internally by
the immediate concerned officer. The employees are given points based on the
performance. The employees are evaluated on the basis of points.
Precaution from accidents and taking suitable precautionary measures is the main activity of this
department; BEL has separate section called HSE section. It takes in to account all the
precautionary measures.
Safety Policy:
The following are the safety policies adopted by BEL unit:
➢ Compliance with applicable Legislation and Regulations.
➢ Continual improvement in the safety management systems performance.
Functions:
➢ Accident preventions.
➢ To provide Personal Protective Equipments (PPE’s), like safety shoes to protect from
piercing metals, contact from acids, electric shock etc., welding shields, safety belts etc.
to employees and crash helmets are provided to those employees and crash helmets are
provided to those employees who are working in kilns section to protect from head
injuries.
➢ Safety Education.
➢ This unit has board exhibiting details regarding the production processes and safety
measures to be taken by each and every sections of the production department to enable
the employees to function smoothly.
CHAPTER 4
STUDY OF SPECIFIC
MANAGEMENT PROBLEM
DAYANANDA SAGAR COLLEGE OF MANAGEMENT & IT Page
100
BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE
In BEL they are facing problem in maintaining working capital management. so, i have
made a detailed study by referring to last 5 yrs working capital.
4.1 Working capital level
The consideration of the level investment in current assets should avoid two danger points
excessive and inadequate investment in current assets. Investment in current assets should be just
adequate, not more or less, to the need of the business firms. Excessive investment in current
assets should be avoided because it impairs the firm s profitability, as idle investment earns
nothing. On the other hand inadequate amount of working capital can be threatened solvency of
the firms because of its inability to meet its current obligation. It should be realized that the
working capital need of the firms may be fluctuating with changing business activity. This may
cause excess or shortage of working capital frequently. The management should be prompt to
initiate an action and correct imbalance
Table: Size of working capital: (RS. In millions)
4.2 Working capital trend analysis: In working capital analysis the direction at changes over a
period of time is of crucial importance. Working capital is one of the important fields of
management. It is therefore very essential for an analyst to make a study about the trend and
direction of working capital over a period of time. Such analysis enables as to study the upward
and downward trend in current assets and current liabilities and it s effect on the working capital
position.
Emphasizing the importance of working capital trends, Man Mohan and Goyal have pointed out
that analysis of working capital trends provide as base to judge whether the practice and
privilege policy of the management with regard to working capital is good enough or an
important is to be made in managing the working capital funds. Further, any one trend by itself is
not very informative and therefore Comparison with Illustrated their ideas in these words, an
upwards trends coupled with downward trend or sells, accompanied by marked increase in plant
investment especially if the increase in planning investment by fixed interest obligation.
Table: Working capital size
Observations: It was observed that major source of liquidity problem is the mismatch between
current payments and current receipts from the Comparison of funds flow statements of BEL for
five years. It was observed that in the year 2008-09 current assets increased by around 29% and
current liabilities increased only by 19% which affect as working capital increased by 35%. In
the year 2008 to 2009 net working capital increased to Rs 43640 million from Rs. 26081 million,
the increase in working capital is close to 67%. While current assets increased by 66% and
current liabilities by 65%. It shows that management is using long term funds to short term
requirements. And it has fallen to Rs.41013 million in the year 2009 because current assets gone
up by only 12%, current liabilities grown by 35%. This two together pushed down the net
working capital to the present level. The fall in working capital is a clear indication that the
company is utilizing its short term resources with efficiency.
Policy changes:- The second major case of changes in the level of working capital is because of
policy changes initiated by management. The term current assets policy may be defined as the
relationship between current assets and sales volume.
Technology changes:- The third major point if changes in working capital are changes in
technology because changes in technology to install that technology in our business more
working capital is required A change in operating expenses rise or full will have similar effects
on the levels of working following working capital statement is prepared on the base of balance
sheet of last two year.
Increase Decrease
A
)
C
u
r
r
e
n
t
A
ss
et
s
Inventories 18373 27430 9057
Sundry Debtors 28305 44051 15746
Capital
Total 43638 43638 31467 31467
Observations
Working capital decreased in the year 2009 to 2010 because
Sales increased by around 35%, where cost of raw material purchased
Increased by 42% and manufacturing expanses increased by 51%.
Cost of material and manufacturing expanses increased because of
Inflation, which was 6.63% in Feb. 2010 increased from 4%in 2009
CHAPTER 5
RECOMMENDATIONS
AND CONCLUSION
Recommendations:
One’s area of concern is a sundry debtors. It is recommended that either the operations in
the area to be toned up with introduction of skilled, trained & motivated work force or the
subcontractor of their operation to be done to outside agencies.
Marketing department should be divided in different & each sub department will be
responsible for their work. In the complex market, the divisional heads are required to be
given total responsibility of the operations under them & be held accountable for that:
Targeting low margin high volume operation and diversification the product & business
Better HR policies to attract & retain the talent
Technological advancement
A library which offers a vast range of books, journals, magazines, newspapers and
internet facilities.
Conduct more efficient training programs this will help them not only in existing work
area, but also in developing the overall individual personality.
Strictly advice the workers to use the safety equipment at shop floor.
Reduce the excessive wastages after the kiln this in turn helps in reducing the cost.
Provide sign boards with in the units to facilitate easy identification of the department.
Conduct seminar on communication so that employees improve their communication
skills.
Provide proper place for disposal of waste materials.
Time taken to produce finished goods should be reduced in case of insulators.
Provide proper storage facilities for finished goods.
Conclusion
BEL being public sector unit manufacturing industrial and heavy electrical goods has been
technologically and managerially advanced in recent years. This division of BEL can be made as
an example to other public sectors. As a processing industry, it should have proper
communication between all types of departments. Because they need to work together to achieve
the organization goal more effectively and efficiently. The management will receive feed-back
from employees. This is done in periodically by HR Department. In this if any employee having
better suggestion regarding the working improvement, it will be checked and if it is giving better
results it will be accepted. The person who has given the suggestion will be rewarded suitably.
Today BEL exceeds to keep up the pace of rapid development in its move for perfection. BEL
has fortified its drive for complete customer satisfaction preparing for the future with the sense
of commitment and confidence. It looks forward to continuing stage of dynamic growth
achievement and total service for energy.
The employees of the BEL are given Medical Facilities till their death and even to family
members. Hence this has been a stimulating force for the employees as well it has increased their
loyalty and morale towards the organization. I never felt that I am doing my project in a PSU as
the management was similar to that of a Private Company. Hence, my total scenario towards the
PSU has totally changed. I would be lucky to get employment in BEL. The internship program
was extremely beneficial, where I was exposed to the various activities in a work environment. I
gained a wide knowledge about the various departments like the production process,
computerized accounting system, the salary benefits, training program help for workers, work
satisfaction of employees, marketing and commercial, Material management and many more.
These experiences I am sure is going to prove as an asset to me in my future Endeavors. I really
had a great experience in the company which gave me a chance to know the functioning of the
organization, therefore, it can definitely be said that this opportunity has improved my
knowledge about the management and various other concepts.
APPENDIX
BIBLIOGRAPHY
Books:
• BEL magazine,
• Ford magazine,
• Personal magazine of various departments,
• BEL yearly diary.
Reports:
Websites:
• www.bel.co.in
• www.moneycontrol.com
• www.google.com
• www.wikipedia.com
• www.scrib.com