Harmonization of HR Policies - Rough

2012
Bombardier Transportation India Ltd.
Project on
Harmonization of HR Policies
Under the Guidance of

Mr. Ajay Kumar Singhroha
(Director HR, Bombardier
Transportation India Ltd.)
Submitted by
Francis Soiba
Xavier Institute of Social Service
Ranchi
Harmonization of HR Policies 2012
Contents
Table of Contents
List of Figure and List of Table 2
Acknowledgement 3
Executive Summary 5
Industrial Profile 8
Company Profile 14
Literature Survey and Theoretical Background 23
Research Methodology 28
Test of Hypothesis 32
Data Analysis and Interpretation 35
Findings and Recommendations on Policies 47
Recruitment and Policy Recommendation 48
Training & Development and Policy Recommendation 60
Leave & Holidays and Policy Recommendation 69
Retention and Retention Bonus Policy Recommendation 87
Reward & Recognition and Policy Recommendation 92
Promotion and Grading System Recommendation 99
Separation, Full and Final Settlement Policy Recommendation 108
Annexures
Copy of Questionnaire
Bibliography
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List of Figure
Figure 3.1: HSE Governance at Bombardier 20
Figure 3.2: Health, Safety and Environment Policy 21
Figure 9.1: Stages of Training and Development 61
Figure 9.2: Criteria for measuring training success 68
Figure 12.1: 50/30/20 Rule 92
Figure 13.1: Tower Watson’s Global Grading System Map 103
Figure 13.2: Graph for Band and Designation 104
Various Graphs of the questionnaire
List of Table
Table 7.1: Mean and Standard Deviation of the Questionnaire 35
Table 8.1: Panel Members for interview 55
Table 10.1 Comparison of the leave policies at various sites 77
Table 10.2 Comparison of the list of holidays of various sites 78
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ACKNOWLEDGEMENT
At the outset I take immense pleasure in thanking the Management Team of Bombardier
Transportation for having permitted me to carry out this project work at Bombardier
Transportation India Ltd.
I wish to express my deep sense of gratitude to Sir Debashish Chatterjee (Director HR – Asia
Region Bombardier Transportation) for his unceasing encouragement and follow-up in making
this research a substantial project.
I am extremely thankful and pay my gratitude to Sir Ajay Kumar Singhroha (Director HR
Bombardier Transportation India Ltd.) for his valuable guidance, constant follow up review and
forward-thinking insight in making this a substantial project.
I am greatly obliged to Professor Gomes Shyamal (Professor, Xavier Institute of Social Service)
who has been my mentor throughout my project and for his diligent guidance and valuable tips
and information.
I am grateful to Mr. Dibyendu Thakur (HR Head Bombardier Transportation India Ltd.) for his
awe-inspiring practical thought and ideas in doing my project.
I am greatly obliged to Mrs. Ashima Roona (HR Business Partner Bombardier Transportation
India Ltd.) who has inspired me with her valuable feedback and support in times of deadlock
situation.
Needless to mention that Mr. Sankalp Shobhit (HR Business Partner Bombardier Transportation
India Ltd) who has been a source of inspiration for his unceasing guidance on the ground of
which I have acquired a new field of knowledge.
Words are inadequate in offering my thanks to all the HR team of Bombardier Transportation
India Ltd. for their support and cooperation in carrying out the project work.
Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for
their blessings, Brother Peter Ki for his thought provoking motivation and wisdom, my family
members and friends for their help and wishes for the successful completion of this project.
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Executive Summary
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1. Executive Summary
1.1 Harmonisation of HR Policies
There is a growing need of harmonization to expand HR policies and practices across

the globe in many of the organisations. It is the task of creating greater standardization
of HR policies to increase efficiency and create more consistent company policies a nd
procedures. With rapid global expansion, this has become an emerging issue for which
many companies find that there is little or no institutional memory and mentorship
within the company to assist HR professionals in addressing this challenge.
HR policies provide guidelines on how key aspects of people management should be

handled. They aim is to ensure that HR issues are dealt with consistently in accordance
with the values of the organisation in line with certain defined principles. Some,
however, exist implicitly as a philosophy of management and an attitude to employees
that is expressed in the way in which HR issues are handled. The advantage of explicit
policies in terms of consistency and understanding may appear to be obvious, but there
are disadvantages too: written policies can be inflexible, constrictive and platitudinous
or all three. To a degree, policies have often to be expressed in abstract terms and
managers do not care for abstractions. But they do want to know where they stand –
people like structure – and formalised HR policies can provide the guidelines they need.
The primary purpose of HR Policy is to shape employment policies to reflect the best
practices so as to ensure a productive workplace contributing to economic growth that
benefit both employers and their employees (Demand Media, Inc., 1999). The fact is
that many of the organisations still have obsolete policies, redundant approaches in
handling matters and grievances. Stagnate processes pose a serious threat to the very
sustainability of many of these organisations.
HR transformation is focused on making HR operations more efficient and effective

through process standardisation and technology. It is tightly linked to corporate strategy
and creation of business value through HR services that address a company’s most
pressing strategic challenges (Deloitte Touche Tohmatsu, 2006). HR policies can be
expressed formally as overall statements of the value of the organisation or in specific
areas.
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However, while analysing the ways and means of improving HR policies and
procedures, the questions that arises are:
Where are we today?
What do we want to be tomorrow?
What is the gap between today and tomorrow?
Once the gap is identified, options will be looked at to address the gap; those options are
then evaluated to inform the conclusions and recommendations. The recommendations
will lead to a detailed implementation plan with ‘smart’ targets that will facilitate the
delivery of the HR Strategy (Maire, 2011).
Keeping this in mind, Bombardier has taken steps to centralise its HR policies across all
India to define its standard and commitment to the employees. For this, harmonisation of
HR policies is the pre-requisite condition. Thus HR policies are standardised, simplified
and automated for the employees to have an easy access. Its key purpose is to reflect
excellence in all areas of the employment relationship. The Human Resource
Department has put in place appropriate policies, procedures and guidelines tailored to
the needs of the employees, while recognising the requirement of employment
legislation and reflecting best practice.
The objective of this project is to do the following:
• To help in listing some key Human Resource policies those are in line with the
mission statement and values of the organization.
• To help in identifying the essential policies and procedures of Human Resource.
• To identify the different HR policies and procedures of the various sites at
Bombardier Transportation India Ltd.
• To help in synergising the various HR policies and procedures of Bombardier
• To act as a source in formulating the HR policies and procedures of Bombardier
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Industrial Profile
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2. Industrial Profile
2.1 Introduction
Transport is an important part of any nation's economy. If we look at human history, growth
and development has always been associated with transportation in one form or the other.
Since the industrial revolution in the 19th century we have seen a number of inventions
fundamentally changing transportation. The invention of steam engine, closely followed by its
application on rail transport made transportation much easier and faster. In India, economic
liberalisation in the early 1990s gave rise to a rapid change in the development of
infrastructure and transportation. The country’s rapid economic growth created considerable
demand for automobile and vehicles for means of transport especially in urban India.
Moreover, the growing population means more demand for means of transportation and
automobiles. In this interim of huge population and climate change, having the right means of
transportations is a big question mark. When emphasis is on sustainability of growth and
development, rails and mass rapid transit system are best suited to the requirements of the
people for sustainability and ecological purposes.
India has one of the largest rail networks in the world. Railways were first introduced in India
in 1853. By 1947, the year of India's independence, there were forty-two rail systems. In 1951
the systems were nationalized as one unit, the Indian Railways, becoming one of the largest
networks in the world. A staggering 18 million people travel by train in India every day, on
more than 9000 scheduled services (Bindloss, 2011). However, when it comes to passenger
transportation in the urban areas the demand have been increasing with the increasing
geographical separation of accommodation, work and recreation. The demand for inter-city
traffic should have been such that the traffic between cities and surrounding regions and
between metropolitan areas should be well connected but only few cities like Kolkata, Delhi,
Mumbai and Bangalore have Metros and mass rapid transit systems in spite of many of our
cities having huge population.
It has been observed that in developed countries, planning for mass transit system starts when
city population size exceeds 1 million; the system is in position by the time the city
population is 2 to 3 million and once the population exceeds 4 million or so, planned
extensions to the Mass Rapid Transit Systems is vigorously taken up (Delhi Metro Rail
Corporation Ltd., 2010). In a country like India, because of paucity of funds, planning and
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implementation of rail-based Mass Rapid Transit Systems has been lagging far behind
requirement. However, to cater to the sustainable development of driving India’s productivity,
creating jobs, connecting people and facilitating social and economic development, rails and
metro infrastructure at various cities is the need of the hour.
The major companies that manufacture and supply rails and mass rapid transit systems in
India are Bombardier Transportation, ABB, Alstom, Siemens AG of Germany, GE and
BEML (formerly Bharat Earth Movers Ltd).
The profiles of these major companies are given below.
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2.2 Alstom
Alstom is a large French multinational conglomerate which holds interests in the transport
infrastructure, power generation and transmission. According to the company website, 31st
March 2012, Alstom had annual sales of over €19.9 billion, and employed more than 92,600
people in 100 countries. Alstom's headquarters are located in Levallois-Perret, near Paris. Its
current CEO is Patrick Kron (Alstom, 2012). Alstom is active in the field of hydroelectric
power generation; in conventional islands for nuclear power plants; and in environmental
control systems. Alstom is also present in the urban transport market, and is behind regional
train models, signalling infrastructure equipment, and a number of associated services
(Wikipedia, 2012).
The company is no. 1 in the high and very high speed train sector and keeps investing in high
end segments, while developing products suited to the specific needs of the emerging markets.
Alstom Transport is present in over 60 countries and employs some 27,000 people. Alstom
Transport’s sales slightly declined at €5.6 billon (compared to €5.8 billion during fiscal year
2009/2010), while its operating margin remained globally stable around 7% (Alstom, 2012).
Alstom Transport develops and markets the most complete range of systems, equipment and
services in the railway sector. Alstom Transport manages entire transport systems, taking in
rolling stock, signalling and infrastructure, and offers “turnkey” solutions. Alstom's product
range includes high and very high speed trains, trams, metros, commuter and intercity trains,
as well as tilting trains and locomotives. The company also operates in the rail infrastructure
market, designing, producing and installing infrastructure for the rail network to upgrade
safety and performance of existing networks, or as part of new turn-key solutions. These
include information solutions, electrification, communication systems, track laying, station
utilities and workshops & depots.
Notable products includes series production of the TGV high-speed trains with over 650
trainsets sold over 25 years, as well as the AGV (Automotrice Grande Vitesse) revealed in
February 2008. The company also produces Citadis trams; as of 2009, over 1100 Citadis
trams are in use by 28 cities including Dublin, Algiers, Barcelona, Melbourne and Paris. Since
2002 Alstom manufactures the Pendolino tilting train following the acquisition of Fiat
Ferroviaria.
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2.3 Siemens AG
Siemens & Halske was founded by Werner von Siemens on 12 October 1847. Based on the
telegraph, his invention used a needle to point to the sequence of letters, instead of using
Morse code (Britannica Concise Encyclopedia, 2012). Today, Siemens AG is one of
Germany’s leading technology companies. The company employs a total of 460,800 people
worldwide reported global revenue of approx 71 billion euros for the year of 2011. Siemens
AG, German electrical equipment manufacturer formed in 1966 through the merger of
Siemens & Halske AG (founded 1847), Siemens-Schuckertwerke (founded 1903), and
Siemens-Reiniger-Werke AG (founded 1932). Operating in more than 190 countries, it
engages in a wide range of manufacturing and services in areas such as power generation and
transmission, transportation, lighting, electrical components, telecommunications systems,
and medical engineering. The company invests heavily in research and development and
ranks among the largest patent holders in the world. Headquarters are in Munich
(Encyclopedia Britannica Inc, 2012).
It has organised itself into four main sectors and divisions as of October 1, 2011:
Industry
Energy
Healthcare
Infrastructure and Cities
Infrastructure and Cities is again divided into six divisions, name Rail Systems, Mobility
and Logistics, Low and Medium Voltage, Smart Grid, Building Technologies and OSRAM.
Cities are centres of growth. The amount of investment spent on infrastructure worldwide is
approximately €2 Trillion per year. The market addressable by Siemens is about €300 billion
with total revenue of €4055 million. The Rail Systems Divisions and Mobility sub-division
brings together Siemens competencies in rail, road, and air traffic solutions. By networking
transportation systems more effectively, the division’s integrated solutions for intermodal
transport, traffic management, postal automation and airport logistics are making the
movement of people and good more efficient and eco-friendly.
Siemens is the leading supplier of complete rail automation products and solutions for all
kinds of railway systems be it Mainline or Metro.
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Various products offered in this category include,
1. Automation for Mainline and for Metro Projects,
2. Relays,
3. Audio Frequency Track Vacancy Detection,
4. Axle Counter,
5. BPAC,
6. Auxiliary Warning System,
7. Point Machines,
8. Thermo Flasher.
Of late Siemens Mobility has signed a contract with Rapid Metro Rail Gurgaon Limited
(RMGL) to build a new metro line connecting Gurgaon Cyber City to Line 2 of the Delhi
metro (DMRC), via the connecting station of Sikanderpur. For this project, Siemens will
implement total rail solutions from coaches to electrification and signaling to system
integration. The project is scheduled to be commissioned by end of 2012 and once complete,
the new 6.1 km stretch will help commuters reduce their travel time significantly (Siemens
India, 2012).
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2.4 BEML Limited
According to the company’s official website, BEML Limited (formerly Bharat Earth Movers
Limited) was established in May 1964 as a Public Sector Undertaking for manufacture of Rail
Coaches & Spare Parts and Mining Equipment at its Bangalore Complex. The Company has
partially disinvested and presently Government of India owns 54 percent of total equity and
rest 46 percent is held by Public, Financial Institutions, Foreign Institutional Investors, Banks
and Employees.
BEML Limited, a ‘Miniratna-Category-1’, plays a pivotal role and serves India’s core sectors
like Defence, Rail, Power, Mining and Infrastructure. EML’s products are exported to more
than 56 countries. As part of company’s globalization strategy, the company has expanded its
global reach by opening local company at Indonesia and Brazil recently in addition to
Malaysia and China offices. 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. In addition to the above, Technology Division of the company
provides end-to-end technology solutions in Auto, Aero, Defence and Rail & Metro related
areas. Trading Division deals in non-company products. BEML manufactures and supplies
Defence Ground Support Equipment such as Tatra based High Mobility Trucks, Recovery
Vehicles, Bridge Systems, Vehicles for Missile Projects, Tank Transportation Trailers, Milrail
Wagons, Mine Ploughs, Crash Fire Tenders, Snow Cutters, Aircraft Towing tractors, Aircraft
Weapon Loading Trolley. The company also plans to take up overhaul and upgradation of
Battle Tanks with a view to assemble and roll out the products. Under Mining and
Construction Business, the company manufactures and supplies Mining & Construction
equipment like Bull Dozers, Excavators, Dumpers, Shovels, Loaders and Motor Graders to
various user segments and under Rail & Metro Business, manufactures and supplies Rail
Coaches, Metro Cars, AC EMUs, OHE Cars, Steel and Aluminium Wagons to the rail sector.
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.
Till date BEML has manufactured Rolling Stock for Delhi Metro and Namma Metro in a
consortium with Hyundai Rotem. BEML has supplied more than 200 coaches to DMRC and
has an order of 150 coaches from Bangalore Metro. Jaipur Metro has also ordered to
manufacture, supply, test and commission 10 train sets of four-car each, totalling 40 cars to
Jaipur Metro Project.
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Company Profile
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3. Bombardier Company Profile
3.1 Historical Background
Bombardier is a global transportation company with 76 production and engineering sites in 25

countries, and a worldwide network of service centres. Bombardier which posted revenue of
$18.3 billion US in 2011 is the progeny of inventor and entrepreneur Joseph-Armand
Bombardier. Joseph-Armand Bombardier at the age of 19 started his own garage and worked
as a mechanic. In 1936 he submitted his patent application for the B7, a seven-passenger
snowmobile that sported a revolutionary rear-wheel drive and suspension system. In 1940 he
built a modern factory with an annual production capacity of 200 vehicles. In 1942 Joseph-
Armand incorporated the company L’Auto-Neige Bombardier Limitee, or Bombardier
Snowmobile Limited. By 1947 the company was generating annual sales of C$2.3 million and
realizing profits of more than C$300,000.
By the end of the 1950s Bombardier's sales were approaching C$4 million annually as profits
soared toward the C$1 million mark. In the year 1964 he died leaving behind a healthy and
financially sound company. In 1966 Laurent Beaudoin, the founder son-in-law became the
president of the company. Under Beaudoin’s inspired leadership, the company enters a new
era of organic growth and diversification through strategic acquisitions.
In 1974, Bombardier won its first mass transit contract to manufacture 423 cars for the city of
Montreal’s subway system. Bombardier made a breakthrough of $1 billion US in 1982 to
supply New York City with 825 subway cars. In 1986, Bombardier expanded to Europe, the
world’s largest rail equipment and services market, acquiring a 45% interest in the Belgian
manufacturer BN Constructions Ferroviaires et Metalliques S.A. It also diversified to the
Aerospace industry acquiring the Canadair, the leading Canadian aircraft manufacturer of
Challenger wide-body business jets and the CL-215 amphibious fire-fighting aircraft.
In 1990, it enters the U.K. market for the first time, acquiring Procor Engineering Limited, a
manufacturer of body shells for locomotives and rail passenger cars. In 1992 the company
gained a controlling 51 percent stake in Ontario-based de Havilland, a manufacturer of
turboprop aircraft, such as the Dash 8 regional airplane. Bombardier Aerospace's revenues
skyrocketed, jumping from C$4.28 billion in 1996 to C$6.44 billion in 1998 to C$10.56
billion in 2000. The head of Bombardier Aerospace, Robert E. Brown, was rewarded for this
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stellar performance in February 1999 with a promotion to president and CEO of Bombardier
Inc., with Beaudoin remaining chairman of the board.
Bombardier Transportation began playing a more prominent role within the company. By
2002 Bombardier relocates its Transportation headquarters from Montreal, Canada, to Berlin,
Germany. This move strengthens its ability to serve Europe, the world’s largest rail market.
Today Bombardier operates in two industry-leading businesses:
• Aerospace
• Rail transportation
Our 70,000 employees design, manufacture, sell and support the widest range of world-class
products in these two sectors. This includes commercial and business jets, as well as rail
transportation equipment, systems and services.
Bombardier is headquartered in Montréal, Canada, and its shares (BBD) are traded on the
Toronto Stock Exchange. In the fiscal year ended December 31, 2011, we posted revenues of
$18.3 billion US.
3.2 Bombardier Aerospace
With more than 33,600 employees and a leadership position in global markets, Bombardier
Aerospace designs, manufactures and supports innovative aviation products for the business,
commercial, specialized and amphibious aircraft markets. It has the most comprehensive
aircraft portfolio and we hold the number one position in business and regional aircraft. Our
high-performance aircraft and services set the standard of excellence in several markets,
including:
• Business aircraft - Learjet, Challenger and Global aircraft families

• Commercial aircraft - new CSeries program, CRJ Series and Q-Series aircraft families
• Amphibious aircraft - Bombardier 415 and Bombardier 415 MP aircraft
• Jet travel solutions - Flexjet
• Specialized aircraft solutions - Bombardier aircraft modified for special missions
• Aircraft services and training - aircraft parts, maintenance, comprehensive training,
technical support and publications, and online services
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3.3 Bombardier Transportation
With 62 production and engineering sites in 25 countries and more than 40 service centres at
customer premises across the world, Bombardier Transportation is the global leader in the rail
industry. It covers the full spectrum of rail solutions, ranging from complete trains to sub-
systems, maintenance services, system integration and signalling. It installed base of rolling
stock exceeds 100,000 rail cars and locomotives worldwide. Its 36,200 employees continue a
proud tradition of delivering ingenious rail transportation solutions, including:
• Rail vehicles - automated people movers, monorails, light rail vehicles, advanced
rapid transit, metros, commuter/regional trains, intercity/high-speed trains and
locomotives
• Propulsion and controls - complete product portfolio for applications ranging from
trolley buses to freight locomotives
• Bogies - product portfolio for the entire range of rail vehicles
• Services - fleet maintenance, operations and maintenance (O&M), vehicle
refurbishment and modernization, and material management
• Transportation systems - customized “design-build-operate-maintain” transportation
system solutions
• Rail control solutions - advanced signalling solutions for mass transit and mainline
systems
3.4 Bombardier Transportation India Ltd
Bombardier Transportation India Ltd is a subsidiary of Bombardier Transportation, a global

major in railway transport. It started its active manufacturing in Savli, Gujarat. It came to
limelight when it bagged a $700 million contract from Delhi Metro Rail Corporation (DMRC)
to supply 424 Bombardier MOVIA metro cars.
As an organisation Bombardier Transportation India Ltd is divided into various divisions and
sites based on the nature of the business operation it is into. Its corporate office is at Delhi. It
has three main office (sites) at Vadodara. They are namely Bombardier Savli, Bombardier
Maneja, and Bombardier City Office, Vadodara. Bombardier Savli plant mainly makes
mainland metro parts, bogies and car bodies. Bombardier Maneja plant is mainly into
Propulsion and Controls. City Office Vadodara mainly caters to the technical support aspect
of the various rails and metros control solutions in and around the world. There are also three
divisions at Delhi namely DMRC, DMRC and RCS which caters to the Metro project at
Delhi. Bombardier Transportation India Ltd also has various sales and services offices at
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various cities of India namely at Delhi, Mumbai, Chennai Kolkata and CLW (Chittaranjan
Locomotive works).
3.5 Strategic Intent
Mission Statement
Our mission is to be the world's leading manufacturer of planes and trains.
We are committed to providing superior value and service to our customers and sustained
profitability to our shareholders by investing in our people and products.
We lead through innovation and outstanding product safety, efficiency and performance.
Our standards are high. We define excellence—and we deliver.
Bombardier Core Values
Bombardier as an organisation adheres by its core values. Its policies including the code stem
from its core values. Therefore, the core values inspire all actions and decisions and provide a
benchmark for everyone in the organisation.
The Core Values are:
Integrity
It beliefs in behaving with integrity and ethics in everything they do and say. Thereby earning
and maintaining the trust and respect of customers, shareholders, suppliers, colleagues,
partners and communities.
Commitment to Excellence
Its commitment is to demonstrate excellence in all spheres of their work and in every
interaction with customers, shareholders, suppliers, colleagues, partner and communities. In
addition, they are committed to exercising judgement, professionalism, rigour, self-discipline,
perseverance and team spirit.
Customer Orientation
As an organisation it promotes a customer-centred culture that emphasizes outstanding service

and meets their commitments at every level of the organisation.
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Shareholders Focus
The organisation focuses on creating sustainable shareholder value through developing

profitable products and projects, and soundly managing the business for the benefits of the
customers, shareholders, suppliers, colleagues, partners and communities.
3.6 Quality Policy
It considers quality to be an important measure of business excellence and of our success.

Quality creates value for our customers, shareholders, suppliers employees and rail
passengers.
Quality Policy is built around three concrete commitments:
1. To provide innovative, reliable and sustainable products which meet our customer’s
expectations
• We stand by our products and services, by being responsive to our customers at all
times and offer lifetime support.
• We work according to a streamlined set of business processes and sound principles,
and continuously innovate and improve our products and services.
• We do not accept receiving, making or shipping a defect to our external or internal
customers.
2. To empower employees to deliver quality
• We strive to create a stimulating workplace, in which all employees understand their

individual responsibility to deliver high quality work by preventing waste, simplifying
work practices and saving energy.
• We empower our divisional and site leadership teams to take ownership of their own
quality performance and to make decisions which meet customer and other
stakeholder expectations, whilst also respecting the local communities where we are
located.
• We care for our employees and offer a safe working environment.
• We reward performance and initiative and encourage employees to make decisions.
3. To partner with our suppliers and support their development
• We foster transparency when working with our suppliers.

• We support our suppliers’ development and involve them right from the start.
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• We are committed to quality and safety by complying with regulatory and industry
requirements and by working only with suppliers who also do so.
Health, Safety and Environment Policy
Figure 3.1: HSE Governance of Bombardier
Source: Corporate Social Responsibility, available at

http://csr.bombardier.com/en/governance.
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Figure 3.2 Health, Safety and Environment Policy
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Literature Survey and Theoretical Background
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4. Literature Survey and Theoretical Background
4.1 Introduction
HR policies are continuing guidelines on how people should be managed in the organisation.
They define the philosophies and values of the organisation on how people should be treated,
and these are derived from the principles upon which managers are expected to act when
dealing with HR matters.
4.2 Definition of HR Policies and Procedures
“Human resource policies are the formal rules and guidelines that businesses put in place to
hire, train, assess, and reward the members of their workforce. These policies, when
organized and disseminated in an easily used form, can serve to pre-empt many
misunderstandings between employees and employers about their rights and obligations in the
business place” (US Legal).
A "Policy" is a predetermined course of action which is established to provide a guide toward

accepted business strategies and objectives. In other words, it is a direct link between an
organization's "Vision" and their day-to-day operations. Policies identify the key activities
and provide a general strategy to decision-makers on how to handle issues as they arise. This
is accomplished by providing the reader with limits and a choice of alternatives that can be
used to "guide" their decision making process as they attempt to overcome problems
(Bartridge, 2005).
HR policies and procedures are so important because it is the strategic link between the
company’s vision and its day-to-day operations. It is the well written policies and procedures
that allow employees to understand their roles and responsibilities within pre-defined limits.
It's easy to see that well-written policies and procedures benefit the company as well as the
employee. From an employee’s perspective, the guidelines provided in policies and
procedures allow workers to perform their jobs with respect and dignity. Polices provide
guidance on how to handle issues properly as well as clearly identifying their job constrains.
The organization benefits by allowing managers the freedom to concentrate on strategic issues
because policies and procedures are in place to guide the normal-day-to-day operations
(Bartridge, 2005).
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In short, a policy is a formal statement of a principle or rule that members of an organization

must follow. Each policy addresses an issue important to the organization's mission or
operations. And a procedure tells members of the organization how to carry out or implement
a policy. Policy is the "what" and the procedure is the "how to" (HR Council for the Nonprofit
Sector).
Policies are written as statements or rules. Procedures are written as instructions, in logical
steps.
4.3 Importance of HR Policies
The HR Council for Non-Profit sector would say that the HR policies serve several important
functions. Based on the criticality of the policies, some key important functions listed by them
are:
• Communicate values and expectations for how things are done at your
organization
• Keep the organization in compliance with legislation and provide protection
against employment claims
• Document and implement best practices appropriate to the organization
• Support consistent treatment of staff, fairness and transparency
• Help management to make decisions that are consistent, uniform and predictable
• Protect individuals and the organization from the pressures of expediency
4.4 Subjects Covered by Company HR Policies
HR Policies should address the following basic human resource issues when putting together
their personnel policies. It is that governs the work and actions of employees, such as:
• Employee Information
• Recruitment
• Training and Development
• Code of Conduct
• Reimbursement
• Leave Policy and Absence
• Pay Practices
• Personal Responsibilities
• Job Evaluation and Performance Management
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• Miscellaneous (Termination and Suggestion Policies)
4.5 Advantages of Formal Human Resource Policies
Business firms that have prepared and updated good personnel management policies have
cited several important ways in which they contribute to the success of business enterprises.
Many observers have pointed out that even the best policies will falter if the business owners
or managers who are charged with administering those policies are careless or incompetent in
doing so. But for those businesses that are able to administer their HR policies in an
intelligent and consistent manner, benefits can accrue in several areas:
• Communication with employees. A well written and thoughtfully presented human

resource policy manual can establish the tone that a new business person wishes to
maintain within his or her business. Such a policy also serves to disseminating
information about what employees may expect from the company as well as what the
employer expects from the employees regarding work performance and behavior
while on the job.
• Communication with managers and supervisors. Formal policies can be helpful to

managers and other supervisory personnel faced with hiring, promotion, and reward
decisions concerning people who work under them.
• Time Savings. Prudent and comprehensive human resource management policies can
save companies significant amounts of management time that can then be spent on
other business activities, such as new product development, competitive analysis,
marketing campaigns, etc.
• Curbing litigation. Members of the legal and business communities agree that
organizations can do a lot to cut off legal threats from disgruntled current or ex-
employees simply by creating - and applying - a fair and comprehensive set of
personnel policies (Mansueto Ventures LLC, 2012).
4.6 Harmonisation of HR Policies
Harmonisation is the adjustment of differences and inconsistencies among different

measurements, methods, procedures, schedules, specifications, or systems to make them
uniform or mutually compatible. Just as the words connote, “Harmonisation of HR policies”,
can be defined as the continuous process of ensuring and developing the Human Resources
25
policies through its strategic compatibility and uniformity. It is synergise into one accord and
agreement of the various policies of company at various locations and places.
4.7 Benefits of Harmonisation
The benefits of Harmonisation of HR policies can be summarised as,
• Standardization of HR policies leads to an improvement in efficiency and decrease in

operating costs
• Improved access to more accurate information for informed decision-making
• With common HR policies and processes, measuring performance becomes easier
• Common standards and greater internal controls ensure achievement of regulatory

compliances
• Leverages best practices across business units and greater collaboration across
divisions, making the organization more agile and competitive
• Standardization helps deliver better services to customers
26
Research Methodology
27
5. Research Methodology
Research methodology is a way to systematically solve the result problem. It deals with the
objective of the research study, the method of defining the research problem, the type of
hypothesis formulated, the type of data collected, method used for data collecting and
analysing the data etc. The methodology includes collection of primary and secondary data.
5.1 Type of Research

The study follows a descriptive and exploratory method. Descriptive studies aims at
portraying accurately the characteristics of the particular group in response to the existing
policies of the organisation. Exploratory studies aims at finding out the existing policies of the
various sites and offices of Bombardier Transportation India Ltd and making a comparative
studies.
5.2 Research Design

The research design is a basis of framework, which provides guidelines for the rest of the
research process. It is the map of blueprint according to which, the research is to be
conducted. The research design specifies the method of study. Research design is prepared
after formulating the research problem.
5.3 Sources of Data

Data are the raw materials or facts in which the research works. The task of data collection
begins after research problem has been defined and research design is chalked out. Here the
data collected is classified into primary data and secondary data.
Primary Data
Primary data were collected through the standardise questionnaire
Secondary Data
Secondary data were collected from the company’s existing policy, websites, journals, books
and newspapers.
5.4 Sampling Method

Sampling technique used in this study is through “Random Sampling”.
5.5 Tools for Analysis
Average, Standard Deviation and Percentage were used
28
5.6 Population and Sample

The questionnaire is targeted at the employees of Bombardier Transportation India Ltd at
Vadodara. The population size of the employees of Bombardier Transportation India Ltd is
1500 approximately in total, and the questionnaire was offered to 180 employees selected
randomly based on their availability and willingness. However, the number of completed
questionnaires received by the researcher was 100. However, due to technical error in the
questionnaire, 24 samples of the second part of the questionnaire are not taken into
consideration. Hence, for the first part of the questionnaire the sample size is 100 and for the
second part the sample size is 76.
5.7 Questionnaire and Data Collection
The questionnaire has three sections: first section with three questions, second with 14
questions and the third with 4 questions. The first set of questions is framed in such a way as
to test the hypothesis. The following are the statements in the questionnaire (i). Are you
satisfied with the present HR policies of the company? (ii). Do you feel the need of having
structured HR policies? (iii). Will standardization of HR policies will ensure better
operational effectiveness?
The second set of questions has 14 items measured on a 5 point Likert scale from strongly
agree to strongly disagree. This scale was adopted from James Carl Stone IV (2001),
Oklahoma State University for reduced number of items. This section deals with the key HR
policies of the company and to study the opinions of the employees. The following are the
statements in the questionnaire (i). I am proud to work for my company. (ii). Bombardier
Transportation India Ltd is concerned with the long-term welfare of the employees. (iii). The
company has a well-defined and well-structured process of recruitment. (iv). The company
have a clear development and training plan/strategy for all the employees. (v). The company
has a policy that attracts talents and retains the best employees across all sites (vi).
Recognition and rewards for the effort put in by you to do your work will give you a WOW
feeling to do your work better. (vii). The company has transportation policies that are even for
all employees. (viii). The company offers compensation plans that provide a stable base with
variable linked to performance. (ix). The company has a leave policy that is even through its
defined policies. (x). The company encourages employees to play a proactive role in
improving the employee-management relationship. (xi). Suggestion policies to enhance
29
feedback from the employees can bring about innovative ideas to the company at large. (xii).
Personal job evaluation is done by your immediate manager from time to time. (xiii). My
immediate superior deals with all employees fairly based on the policy of the company. (xiv).
Employee policy on promotion are administered through it defined policies of the company.
The third set of questions has 4 items measured on a scale from excellent to poor. This portion
of the questionnaire is mainly to test the level of satisfaction of the employees based on
certain policies of the company. Where the analysis is done based on the various age groups
and tenure of the employees. The following are the statements in the questionnaire, (i). How
do you rate the channel/process of communication in your organisation? (ii). All things
considered, how do you rate your long term career potential with the company? (iii). How do
you rate safety and health standard of the company? (iv). How do you rate your company
policy on treating the employee’s problems fairly?
5.8 Limitation of the study
• Due to time constraints and busy schedules of the HR Team it was difficult to interact
with them completely
• The Sample size was limited to 100 respondents for the first sets of questions and 74
respondents for the second sets of questions
• The responses may be influenced by personal bias
• Respondents were reluctant to disclose complete and correct information about the
policies
• Complete Documents on HR policies were not provided
30
Test of Hypothesis
31
6. Test of Hypothesis
The null hypothesis is ‘Operational efficiency and standardisation can be achieved without
harmonization of HR policies’ µHO=µH1 and the alternative hypothesis is that ‘Harmonization
of HR policies will ensure standardization’ µHO≠µH1.
Based on the hypothesis, it is assumed that at least 80% of the company’s 1500 employees
feel that operational efficiency and standardisation can be achieved without harmonization of
HR policies. So, 100 employees were surveyed using SRS. The Result was such that 73%
feels that Harmonization of HR policies will ensure standardization. Based on these results,
should we accept or reject the assumption/hypothesis assuming a significance level of 0.05?
For better clarity to the hypothetical analysis the solution to this problem takes four steps: (1)
state the hypotheses, (2) formulate an analysis plan, (3) analyse sample data, and (4) interpret
results. The steps are as follows:
• State the hypotheses. The first step is to state the null hypothesis and an alternative
hypothesis.
Null hypothesis: P >= 0.80

Alternative hypothesis: P < 0.80
Note that these hypotheses constitute a one-tailed test. The null hypothesis will be
rejected only if the sample proportion is too small.
• Formulate an analysis plan. For this analysis, the significance level is 0.05.
The test method, shown in the next section, is a one-sample z-test.
• Analyse sample data. Using sample data, we calculate the standard deviation (σ) and
compute the z-score test statistic (z).
σ = sqrt[P * (1 - P ) / n ] = sqrt[(0.8 * 0.2) / 100] = sqrt(0.0016) = 0.04

z = (p - P) / σ = (.73 - .80)/0.04 = -1.75
where P is the hypothesized value of population proportion in the null hypothesis, p is

the sample proportion, and n is the sample size.
32
Since we have a one-tailed test, the P-value is the probability that the z-score is less
than -1.75. We use the Normal Distribution Calculator to find P (z < -1.75) = 0.04.
Thus, the P-value = 0.04.
• Interpret results. Since the P-value (0.04) is less than the significance level (0.05),
we cannot accept the null hypothesis.
Therefore, we can conclude that Operational Efficiency and Standardisation emerges from
Harmonisation of HR policies. The fact is very clear from the test of hypothesis that is given
above. Where the null hypothesis is rejected and the alternative hypothesis is accepted. The
null hypothesis is of the statement, ‘Operational efficiency and standardisation can be
achieved without harmonization of HR policies’ and alternative hypothesis of the statement
as, ‘Harmonization of HR policies will ensure standardization’. However, it is to be noted that
the chance of error is 5% for the level of significance given as 0.05.
33
Data Analysis and Interpretation
34
7. Results of Data Analysis
The data analysis is done in two stages, based on the data collection source that is namely
primary data and secondary data. The primary data is the data collected by interviewing
employees for research by random sampling. This is through a well-structured questionnaire,
where extensive information is sought from the employees about the policies and procedures
of HR policies of Bombardier Transportation India Ltd. For continuous variables, mean and
standard deviations were computed.
Table 7.1 Mean and Standard Deviation of the Questionnaire
Statements Mean Standard

Deviation
I am proud to work for my company. 3.9 .91
Bombardier Transportation India Ltd. is concerned with the long term 3.5 .85
welfare of the employees.
The company has a well-defined and well-structured process of 3.1 .99

recruitment.
The company have a clear development or training plan/strategy for all 2.9 .96
employees
The company has a policy that attracts talents and retains best 2.8 1.07
employees across all sites.
Recognition & Reward for the effort put in by you to do your work will 3.3 1.07
give you a WOW feeling to do your work better.
The company have transportation policies that are even for all 3.4 1.23
employees.
The company offers compensation plans that provide a stable base with 3.02 1.10
variables linked to performance.
35
The company have a leave policy through its defined policies. 3.3 1.17
The company encourage employees to play a proactive role in 3.4 .94

improving the employee-management relationship.
Suggestion policies to enhance feedback from the employees can bring 3.8 1.05
about innovative ideas to the company at large.
Personal Job Evaluation is done by your immediate manager from time 3.5 1.10
to time.
My immediate superior deals with all employees fairly based on the 3.7 1.09
policy of the company.
Employee policy on promotion is administered through its defined 2.9 .90

policies of the company.
1. Tenure of employees in Bombardier Transportation India Ltd.
Inference: It has been inferred that 26% of the

employees who participated in the survey have
worked in Bombardier Transportation India Ltd
for 0-1 year; 22% for 1-2 years; 35% for 2-5
years; and 17% have been serving the company
for more than 5 years. Therefore, the inference
to be made from this survey is that, a good number of the employees have serving
Bombardier Transportation India Ltd. for a more than 2 years.
2. I am proud to work for my company.
36
Inference: As per the survey, 78% of the respondents said that they are proud to work
for the company. Of this, 26.7% of the respondents strongly agree to the statement
and 50.7% of the respondents agree to the statement. However, 15.8% of the
respondents have not expressed their opinion; they have marked it as Neither Agree
Nor Disagree. 4% of the respondents marked Disagree to the Statement and 2.6% of
the respondent marked Strongly Disagree to the Statement.
3. The Company is concerned with the long-term welfare of the employees.
Inference: It has been inferred that

37.3% of the employees have an
opinion that the company have a
concern for the long-term well-
being of the employees. Of this, 6%
strongly agreed to the statement and
31% of the respondents agreed to the
statement. 40% of the respondents
had neutral opinion and 22.6% of the
respondents have negative opinion. Of this, 16% disagreed to the statement and 7%
strongly disagreed to the statement.
4. The Company has a well-defined and well-structured Recruitment policy.
37
Inference: It has been inferred that 37% of the respondents have the opinion that the
organisation has a well-defined and well-structured recruitment policy. Of this, 7%
strongly agreed to the statement and 30% of the respondents agreed to the statement.
However, 40% of the respondents had a neutral opinion. 23% of the respondents had a
negative opinion. Of this, 16% disagreed to the statement and 7% of the respondents
strongly disagreed to the statement. Based on the comparison of the various sites, 36%
employees in Savli have the opinion that the company has a well-defined recruitment
policy. 48% of the respondents had a neutral opinion. And 16% of the respondents
negated the statement. It is been inferred that 38% employees of Maneja had the
opinion that the company has a well-defined recruitment policy. 36% of the
respondents had a neutral opinion and another 26% had a negative opinion.
There is a clear indication, as the margin on the positive side is at a higher end. 37%
have affirmed the statement and 23% of the respondents have negated the statement.
However, that 40% of the respondents had a neutral opinion is something to be
considered. The conclusion we can make is that 40% of the respondent would not like
to share their opinion. And the fact that the average fell at 3.1 out of 5 with the
standard deviation of .99 is also to be noted. Where the affirmative side is at a strong
end however, we can never make any conclusion for 40% of the respondents have not
shared their opinion
5. The Company has a clear training and development plan/strategy for the
employees.
38
Inference: As per the survey, 29% of the respondents have the opinion that the
company has a clear training and development plan/strategy for the employees. Of
which 3% strongly agreed to the statement and 27% of the respondents agreed to the
statement. 40% of the employees have taken a neutral stand. However, 31% of the
employees have negated the statement. Of which 8% of the respondents strongly
disagreed to the statement and 23% of the respondent disagreed to the statement.
When taken into consideration based on the sites (offices), 36% of the employees in
Salvi have the opinion that the company has a clear training and development plan for
the employees. 40% of the respondents have a neutral view and another 24% of the
respondents have negated the statement. On the other hand, 26% of the employees of
Maneja have the opinion that the company has a clear training and development plan
for the employees. 40% of the respondents have neutral view and another 34% of the
respondents have negated the statement. However, when a deeper analysis is made, the
average of this question is at 2.9 out of 5 with a standard deviation of .96. This is on
the lower margin comparatively. Therefore, training and development is one area
which need more emphasis as per the survey.
6. The Company has policy that attracts talents and retains best employees across
all sites.
Inference: It can be inferred that 30% of the respondents have the opinion that the
company have a policy that attracts talents and retain best employee across all sites.
39
37% of the respondents have taken as neutral opinion and 25% of the respondents
have taken a negative view.
When a comparison was made between Savli and Maneja, 28% employees in Savli
have agreed to the statement. 36% of the respondents have taken a neutral view and
another 36% have negated the statement. On the other hand, 30% of the employees in
Maneja have agreed to the statement. 38% of the respondents have taken a neutral
view and another 32% have negated the statement. This one another area where
importance should be given for the average score was just at 2.8 out of 5 with a
standard deviation of 1.07.
7. Recognition & Reward for the effort put in by you to do your work will give you
a WOW feeling to do your work better.
Inference: It has been inferred that 45.3% of the respondents have the opinion that the
Rewards and Recognitions will enhance a feeling a satisfaction to do the job better.
34.6% of the respondents have given a neutral view and 20% of the respondents have
disagreed to the statement.
Employees of Savli have shown a very positive response in this regard with 56% of
the respondents giving a mandate of agreeing to the statement. 28% of the respondents
have given a neutral view and 16% have disagreed to the statement. However, when it
comes to Maneja 40% of the respondents agreed to the statement. Of this 12%
strongly agreed to the statement and 28% of the respondents agreed to the statement.
40
38% have a neutral opinion to the statement. And 22% of the respondents disagreed to
the statement.
8. The company have transportation policies that are even for all employees.
company have transport policy that is even for all the employees. 21.3% of the
respondents have neutral opinion and 24% of the respondents disagreed to the
statement.
Based on the comparison of the sites, 76% of the employees of Savli agreed to the
statement, 12% have neutral view and another 12% disagreed to the statement.
Employees on Maneja have a different opinion when it comes to transport policy. 44%
of the respondents agreed to the statement, 26% have a neutral view and 30%
disagreed to the statement. Here is average is at 3.3 out of 5 with a standard deviation
of 1.07, which is on the affirmative side. However, the distinction between the
employees of Maneja and Savli seem to be of big difference. The employees in Savli
have given a much higher score in comparison with that of Maneja.
41
9. The company offers compensation plans that provide a stable base with variables
linked to performance.
compensation plans is variable linked to performance of the employees. 37.3% of the
employees have a neutral view and 28% of the respondents disagree to the statement.
36% employees in Savli have the opinion that the compensation plans provide a stable
base with variable linked to performance. However, 60% of the respondents have a
neutral view and 8% of the respondents negated the statement. When it comes to
Maneja 36% of the respondents agreed to the statement 26% have a neutral opinion
and 38% of the respondents have a negative opinion.
10.The company have a leave policy that is well defined.
42
Inference: It has been inferred that 52% of the respondents have the opinion that the
company have a leave policy that is well defined. 25.3% of the respondents have a
neutral opinion and 22.6 have negated the statement. 64% of the employees in Savli
have of the opinion that the company have leave policy that is well defined. 20% of
the respondents have a neutral opinion and 16% of the respondents have responded
negatively. However, 46% of the employees in Maneja have the opinion that the
company have leave policy that is well defined. 28% have a neutral view and 26%
have a negative opinion.
11. The company encourage employees to play a proactive role in improving the
employee-management relationship.
Inference: It has been inferred that 54.6% of the employees have a positive responded
to the statement. 32% have a neutral view and 13.3% have a negative view.
Employees in Savli have shown a good response in this aspect with 56% responding
positive, 36% neutral and just 8% responding negative. Employees in Maneja also
have shown a positive response in this aspect with 54% responding positive, 30%
responding neutral and 16% responding negative.
12. Suggestion policy to enhance feedback from the employees can bring about
innovative ideas to the company at large.
43
Inference: As per the response of the survey 71% of the respondents have agree that
suggestion policy can bring about a change and innovation in the company. 18% on
the other hand have given a neutral view and 11% have giving negative response
about the suggestion policy. 64% of the employees in Savli have responded positively,
28% have given a neutral opinion and 4% have given a negative opinion. Employees
in Maneja have a better opinion with regards to this. 74% of the respondents have
shown a positive response, 12% have shown a neutral response and 14% have negated
the statement.
13. Personal Job Evaluation is done by your immediate manager from time to time.
Inference: It has been inferred that 66.6% of the respondents have responded to the
statement positively. 16% have given a neutral response and 17% of the respondents
have negated the statement. Base on the sites comparison 68% of the employees
working in Salvi have responded positively, 20% have taken a neutral view and 12%
have negated the statement. 66% of the employees working in Maneja have also
responded positively to the statement, 14% have taken a neutral view and 20% of the
employees have negated the statement.
44
14. My immediate superior deals with all employees grievances fairly based on the
policy of the company.
Inference: It has been inferred that the employees have a fair satisfaction in this
aspect. 72% of the employees have shown a positive response, 17% have shown a
neutral response and 11% have shown a negative response. Based on the comparison
of the various locations, 72% of the employees in Savli have a positive opinion to this
statement. 24% have a neutral opinion and just 4% have a negative opinion. Again
72% of the employees of Maneja have also shown a positive response. 14% neutral
response and another 14% have shown a negative response.
15.Employee policy on promotion is administered through its defined policy of the

company.
45
Inference: It has been inferred that only 27% of the employees feels that policy on
promotion is administered through its defined policy of the company. 55% of the
employees have not given their opinion. This is clear from the fact that the employees
have selected Neither Agree Nor Disagree. And 18% of the employees have disagree
to this statement. 24% of the employees have agreed to the statement, 44% of the
employees have shown a neutral opinion to this statement. And another 24% have
shown a negative response. 28% of the employees in Maneja have shown a positive
opinion to the statement and 56% of the employees have shown a neutral view to the
statement and 16% of the employees have shown a negative opinion to the statement.
46
Findings and Policies Recommended
47
8. Recruitment
8.1 Introduction
Recruitment is the process of finding and engaging the people the organisation needs, while
selection is that process of the recruitment process concerned with deciding which applicants
or candidates should be appointed to jobs (Armstrong, 2009). Those in this role ensures the
organisation has people with the right skill and compentency set to move into the open
postions (Rothwell, 2012).
8.2 Recruitment and Selection Stages
There are four stages of recruitment and selection as follows:
1. Defining requirement – Preparing role profiles and person specifications; deciding

terms and conditions of employment.
2. Planning recruitment campaigns
3. Attracting candidates – reviewing and evaluating alternative source of applicants,
inside and outside the company; advertising, e-recruiting, agencies and consultants.
4. Selecting candidates – sifting applications, interviewing, testing, assessing candidates,
assessment centres, offering employment, obtaining references; preparing contracts of
employment.
8.3 General Details on Recruitment Policy

The purpose of recruitment policy is to ensure the organisation complies with good hiring
procedures, to keep a record of all employee information, to ensure the recruitment process
complies with the general guidelines, and to begin the process of integrating new employees
into the workforce. Recruitment and selection policy provide employee information that is
used throughout that employee’s career within the organisation and provide a new employee’s
first impression of how the organisation engages employees (Rothwell, 2012).
The policy and procedures should aim to achieve the following objectives:
• Recruit employees with the appropriate skills, both non-technical and technical, in
order to meet the organisation’s current and future needs.
48
• To ensure that the employee appointed to the post involving any responsibilities is
qualified to carry out such duties or are working towards an appropriate skill required
to do that job.
• Work to a fair and effective recruitment procedure, which is consistent with equal
employment opportunity and diversity policies and procedures.
• Develop and enhance the public image of the organisation, both as an employer and as
a quality provider of services and commitment.
8.4 Survey Data Analysis and Discussion

As per the survey data, it has been inferred that 29% of the respondents have the opinion that
the organisation have a well-defined and well-structured recruitment policy. Of the 3% would
strongly agree to the statement and 27% of the respondents agree to the statement. However,
37% of the respondents have a neutral opinion. 33% of the respondents have negative
opinion. Of which 22% disagreed to the statement and 8% of the respondents strongly
disagreed to the statement. Based on the comparison of the various sites, employees of Savli
have responded as, 36% of the employees feel that the company have a well-defined
recruitment policy. 40% of the respondents have a neutral opinion. And 24% of the
respondents have a negative opinion to the statement. It is been inferred that 26% employees
of Maneja have the opinion that the company have a well-defined recruitment policy. 40% of
the respondents have a neutral opinion and another 34% have a negative opinion.
The overall average score of the responses is at 3.1 out of 5 with a standard deviation of .99.
When a deeper analysis into the policies of the various sites was done, the following key
issues emerged:
• It has a structure of recruitment. However, it doesn’t have a standardized format of
recruitment.
• It has a procedure of recruitment and selection where every stage is defined in a graph
format directing how each stage starting from requisition to selection is given.
However, this is not policy as such, for policy are the set of basic principles and
associated guidelines, formulated and enforced by the governing body of an
organisation, to direct and limit its actions in pursuit of long-term goals.
49
Therefore it needs to have a set of recruitment policy that should act as a guideline through a
formulated policy.
Recommendation
Bombardier Transportation India Ltd. as an organisation needs to have a standardised format

of recruitment policy which acts as the basic principles and associated guidelines formulated
and enforced by the governing body of an organisation, to direct and limit its actions in
pursuit of long-term goals.
Therefore the standardised format that is being suggested here is as follows:
Recruitment Policy
Objectives
The aim is to establish recruitment policy that is in line with the core values of the
company.
• It is to ensure the company selects the right talent and enrich its talent pool by
acquiring skills and expertise that strengthens it goal and objectives.
• To select the most suitable applicant or best talent from Internal and External
resources for the job.
Guiding Principles
Equal Employment Opportunity

Equal Employment Opportunity refers to the employers selecting the most suitable
candidate base on the merit and abilities, and the practice of being fair and impartial in
the employment process without any distinction of Race, Colour, Nationality, Religion,
Gender, Disability and Social background.
• Special provisions are made for women and people with certain disability. It shall
encourage diversity of culture and maintain a workflow that is in line with the
requirement of the company.
• Employees and/or any service provider referring special privilege people of
certain disability will be given an additional referral amount in cash.
50
Job Requisition (FORMAT OF JOB REQUISITION)

Job Requisition is a process whereby a manager requests the creation of a new position.
This is a process where the authorized manager launches an application that allows the
manager to fill in the basic details of the job request and submit it for review. Upon
submission, this would be routed to the superior of the requesting senior manager who
would review the request and ultimately approve or deny it. If approved, the request is
subsequently routed to HR for a final approval. To initiate a recruitment process, one
must complete the Job Requisition Form.
Scope
This policy and procedures encompass all activities that form part of the recruitment and
selection process. This is applicable to all recruitment and selection irrespective of the
nature of employment.
Internal Recruitment
Internal recruitment is when the business looks to fill the vacancy from within its
existing workforce.
The goal of the internal job posting policy is to ensure that all employees are made
aware of and have the opportunity to apply for open positions
Policy Clause
• Job openings will be posted on the company Intranet through the Human
Resource link.
• All applications shall be sent through “CORPORATE HR HELP DESK” e-mail
• The process of selection shall include (i) Panel interview (ii) competency
matching and (iii) and administering of a skill tests.
• The decision of the panel shall be binding and final.
Posting Information
Each job posting will contain the following information:
a. Job title
b. Department
c. A complete job description, which includes: a concise summary of principal
duties and requirements of the job, and desired qualifications and experience
d. Location
51
Application Procedure
Qualified and eligible employees who wish to apply for a posted position should contact
Human Resources to request a job description with qualifications and/or a job posting
application.
Screening and Interviewing

a. Human Resources will review each applicant's qualifications. This may include
a discussion with the employee's supervisor.
b. Human Resources will, if appropriate, interview candidates and discuss their
qualifications and interest in the job. Any employee lacking the qualifications for
the job in question will be so notified.
c. Qualified candidates will be interviewed and managers may request to review
the original employment application, resume, and two most recent performance
appraisals for each internal candidate.
Notification of Job Award

All candidates interviewed will be notified of the disposition of the job by the HR in -
charge.
Employees can choose to accept or decline offers without repercussions in their current
positions.
Pay Changes
a. All changes in pay will be consistent with the guidelines listed in the Salary
Administration Program.
b. The salary offered for the new position will be determined primarily based on
the employee’s qualifications for the new position and internal equity within the
department or work group.
Campus Recruitment
Campus placement or campus interview is the program conducted within educational
institutes or in a common place to provide jobs to students pursuing or in the stage of
completing the programme.
Policy Clause
a. The Campus Visit(s) for recruitment shall be done in November-February each
year.
52
b. Corporate HR will initiate the Campus Recruitment with a Corporate Profile

presentation followed by other selection process.
c. Letter indicating the names of shortlisted candidates shall be handed over to
the institution on the spot or a day after selection.
d. The absorption of the GET & MT shall take place only on successful
completion of their final semester examination and strictly in accordance to
company’s policy.
e. GET & MT shall undergo a training period of ONE YEAR and on successful
completion of the training period, they shall be absorbed in regular grades.
f. The management will be within their rights to regularize such trainee without
making it compulsory regularization.
External Recruitment (BTI Application Forms and Documents)

External recruitment is when the business looks to fill the vacancy from any suitable
applicant outside the business.
The Company will follow a pattern of recruitment externally by ways of Job

Advertisements in the Paper, Personal Recommendation (Referral), Recruitment Agency
and Job Centres.
Posting Information
Each job posting will contain the following information:
• a. Job title
• b. Department
• c. A complete job description, which includes: a concise summary of principal
duties and requirements of the job, and minimum qualifications
• d. Location
Policy Clause
• In case of non-availability of suitable internal candidate with requisite
talent/expertise of the vacant post, external sources shall be approached.
• Referred candidates through existing employees may be considered as per
EMPLOYEE REFERRAL PROGRAM/SCHEME.
• All job Advertisements shall indicate Job Description, Role summary, Location,
required experience and the last date of application.
• Decision of the interviewing panel shall be obligatory and final.
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Job Description (FORMAT FOR JOB DESCRIPTION)

A job description is a list that a person might use for general tasks, or functions, and
responsibilities of a position. It includes such information as to whom the position
reports, specifications of the qualifications or skills needed by the person in the job, or a
salary range. A job description sets out the purpose of a job, where the job fits into the
organisation structure, the main accountabilities and responsibilities of the job and the
key tasks to be performed.
It is important for four main uses:
Organisation - it defines where the job is positioned in the organisational structure.

Who reports to whom?
Recruitment - it provides essential information to potential recruits (and the recruiting

team) so that they can determine the right kind of person to do the job (see person
specification)
Legal - the job description forms an important part of the legally-binding contract of
employment
Appraisal of performance - individual objectives can be set based on the job

description
Responsibilities
Interviewing Procedures (external interview)

(INTERVIEW ASSESSEMENT FORM)
Candidates will only be shortlisted for interview if they meet all the essential criteria
defined in the job specification. If the number of candidates meeting the essential
criteria is excessive, further selection must be undertaken utilising the desirable cri teria
to achieve a workable shortlist (suggest no more than 6).
Candidates’ equality and diversity monitoring forms are separated from the application
forms prior to the shortlisting process. The shortlisting panel will not have access to this
information.
Shortlisting must be undertaken by at least two individuals who are experienced in the
recruitment process and who will go on to be involved in the interviewing process. At
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least one member of the panel should have attended the recruitment and selection “ Best
Fit” training.
Interviewing/ Panel Members

Grade Panel I (HR) Panel II (Line Panel III (Skip level
Manager) line manager)
A
B
C
D
O
Blue Collar
Table: 8.1: Panel Members for interview
The interview must be conducted by a panel, the suggested composition of which is

detailed in the procedures. All interviews for one post shall be conducted by the same
panel.
All candidates will be asked a standard format of questions, which will have been
decided by the interview panel prior to the interviews. All questions must be related to
the job requirements and the candidate’s suitability to undertake the role.
The panel members will consist of 3 members, subject to the supervision given by the
Director HR. The choice of candidate will be determined by the majority view from the
formal interview panel. The panel will take account of any other information that will
have been generated as part of the selection process. In the case of a tied vote, the
Chair’s decision will carry.
Offer Letter
A formal offer of appointment is to be made / confirmed in writing and will be
conditional upon receipt of references which satisfy the organisation ’s requirements,
medical assessment, satisfactory evidence of eligibility to work. Considerati on should be
given to reasonable adjustments for a successful disabled candidate.
Monitoring
For equality and diversity purposes, recruitment statistics are monitored on a quarterly
basis by gender, ethnicity, disability, age and by faculty, department an d job type. This
55
information is disseminated to Heads HR and Director HR with any positive action

identified as a consequence.
Medical assessment (LIST OF HOSPITAL)
Medical questionnaires will be forwarded to the successful candidate by HRD along

with the conditional offer of employment.
The successful candidate is assured that the completed form will only be reviewed by an
Occupational Health Advisor acting on behalf of the Organisation; for this, the
organisation will have designated certain Hospitals within the city. Where further
information is required relating to the candidates medical suitability for the post,
medical advice will be taken by Occupational Health from either the candidate’s General
Practitioner (with permission) or medical specialist prior to the candidate commencing
employment.
Under normal circumstances new members of staff must not commence employment
prior to medical clearance being obtained. Failure to adhere to this guideline may result
in employees being dismissed due to their medical unsuitability to carry out the
functions of the job.
The Organisation promotes equal opportunity, including those with disability and
undertakes to make all reasonable adjustment to accommodate needs. In the few
instances where an applicant fails to meet the medical requirement, this will be as a
result of their medical unsuitability to that role and not as a result of their disability.
References
The taking up of references will be the responsibility of the organisation. Employment

references should be obtained from at least the last or current employer, either in writing
or by initial contact via the telephone, to be confirmed in writing. The questions and
information gleaned from the reference must be relevant to the aspects of the post in
question. For example, where cash handling is involved in a post, then the honesty of the
prospective employee must be discussed. Some organisation may wish to obtain
references prior to interview and, whilst this is acceptable, the wishes of candidates must
be respected in this matter.
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Ground Verification through Professional Agencies
Ground verification through professional agencies will be done by the organisation. This
is with a view to avoid frauds and fake CVs, and thus verification of the job candidate
will be done in depth before the organisation puts the candidate in the roll. Pre-
employment check is also done to counter attrition and the theft of data.
Joining Bonus
Joining bonus is to ensure that the company gets the right talent at the right time. The
Prospective candidate will be given 10 per cent of his/her overall cost to company.
However, if situation demands it will be extend to 20 per cent.
Reference and Background Check Policy
There are different types of background checks that may be conducted depending upon
the position for which the candidate is being screened. Background checks may include
the following procedures:
1. A criminal history check.
A full background check, including the procedures listed in 1 above, and including but
not limited to a financial history and other extensive personal background information.
All offers of employment, independent contractor services and acceptance of volunteers

will be subject to the results of the background check. In addition, existing employees
who are of high positions shall also be subject to a background check.
All contracts with temporary agencies must provide that the contractor will comply with
the provisions of this Policy.
Salary Fitment (Format of Salary Fitment)
Salary Fitment is the categorisation of an employee, for the purpose of calculating salary
or allowances.
57
Policy Clause
• HR Department will prepare a “Fitment Sheet” on the basis of company policy to

ensure internal parity in terms of compensation and benefits to be offered to the
selected candidate.
• Salary Fitment would be based on internal comparisons and job value.
• The MD will approve the Fitment Sheet.
Induction
Purpose
Its main purpose is to ensure the smooth induction of a new employee into the
organization and to assist him/her with the preliminary joining formalities. The
objective of this policy directive is to ensure that employees while joining new in the
organization are provided with an appropriate orientation. It is also the objective of this
policy directive to ensure that orientation is provided in a consistent and timely fashion
across all the new employees and Head of HR are aware of their orientation
responsibilities.
Scope
This guideline/policy is applicable for all new joiners in the company.
Policy Clause
• Induction programme must be done for all employees within the first week of
their joining the organisation.
Induction programme must,
• Provide information on terms and conditions of employment
• Provide information on standards of conduct and ethical behavior
• Explain the significance of the Contract of Employment
• Provide the name, location and work telephone number of the HR personnel
• Provide information on maintaining a workplace free from harassment or

discrimination
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• Provide information pertaining to pay, leave entitlements, medical, health and

employee services
• Explain how the company is structured
• Provide a brief history and the mission and vision of the company
• Provide information on workplace programs
• Explain the duties of the employee’s position and the requirements of the job
• Describe the probationary period
• Explain employee development and career development opportunities
• Introduce the new employee to colleagues and one’s immediate manager at the
workplace and give a brief explanation of their role.
Joining Docket
On the day of the joining, the employee will be given a “Joining Docket” which will
contain the following:
• Welcome Letter from the Director HR
• Vision Handbook
• Bombardier Transportation India Brochure
• Employee Handbook
• Joining Forms
• Confidentiality Agreement
• Appointment Letter
• Personal Information Form
• Bank related accounts etc.
On the day of joining of any new employee, the HR Department will open a personal file
for the employee. This file will contain all the documents related to the employee.
59
9. Training and Development
9.1 Introduction
Training and development is the process of acquiring and developing knowledge, skills,
capabilities, behaviours and attitudes through learning and developmental experiences. It is
concerned with ensuring that the organisation has the knowledgeable, skilled, engaged and
committed workforce it needs (Armstrong, 2012).
9.2 Training and Development Stages
Training should be systematic in that it is specifically designed, planned and implemented to

meet defined needs. It is provided by people who know how to train, and the impact of
training is carefully evaluated. The stages are as follows,
• Identify training needs.

• Decide what sort of training is required to satisfy these needs.
• Use experienced and trained trainers to implement training.
• Follow up and evaluate training to ensure that it is effective.
This concept of four-stage model will give a clearer explanation to the training and
development stages. This was a concept developed for the industrial training boards in the
1960s and this can be explained through the graph below (Armstrong, 2012).
60
1. Identify Learning Needs
2. Plan Training Programmes
Techniques Facilities Locations Trainers
3. Implement Training
4. Evaluate Training
Figure 9.1: Stages of Training and Development
Source: Compiled by the researcher from the information given above
9.3 General Details on Training and Development policy
This policy confirms that the organisation is committed to developing it employees, and
outlines the arrangement for identifying, resourcing and allocating training and development
opportunities (NHS, 2007). Training and Development policy is to help build a skilled, well-
trained and professional workforce; to strengthen organizational leadership; and to adopt
leading-edge management practices to encourage innovation and continuous improvements in
performance (Government of Canada, 2011).
The policy and procedures should aim to achieve the following objectives:
• To ensure new employees shares a common understanding of their role as employees
• To ensure managers at all levels have the necessary knowledge to effectively exercise
their delegated authorities
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• Specialists in finance, human resources, internal audit, procurement, materiel

management, information management, and other domains as may be specified, meets
professional standards established by the organisation
• Employees at all levels acquire and maintain the knowledge, skills and competencies
related to their level and functions
• To enhance leading-edge practices (BOS – System) that will encourage innovation and
continuous improvements in performance.
9.4 Survey Data Analysis and Discussion
As per the survey it has been inferred that 29% of the respondents have the opinion that the
company have a clear training and development plan/strategy for the employees. Of which
2.6% strongly agree to the statement and 26.6% agree to the statement. 37.3% of the
employees have taken a neutral stand. However, 37% of the employees negated the statement.
Of which 11% of the respondent strongly disagreed to the statement and 22% of the
respondents disagreed to the statement.
When taken into consideration based on the sites (offices) 28% of the employees in Salvi have
the opinion that the company have a clear training and development plan for the employees.
36% of the respondents have a neutral view and another 36% of the respondents have negated
the statement. On the other hand 30% of the employees of Maneja have the opinion that the
company have a clear training and development plan for the employees that is 2% more than
that of Savli. 38% have a neutral view and another 32% of the respondents have negated the
statement.
The overall average score of the respondents was at 2.9 out of 5 with a standard deviation of
.96. It is an indication that good number of employees felt that there has to be proper training
and developmental policy and plan.
On having an interactive session with the employees of various sites it was found that the
execution of the various training and development were not done though the company has a
set of training and developmental programmes in place.
It was also found that the Human Resource Manual (Passenger & Bogie – India) includes a
Training and Development Policy. However, the policy is about the general identification of
the training and development needs that is done through Transfer of Technology plan (TOT
62
plan), Performance management plan (PMP), Discussion with HOD and Employees. There is
no precise policy that defines clear guidelines for training and development needs and
demarcates the training and development within a specified time-frame. So there has to be a
policy for training and development that is clearly defined in its purpose, objective, scope of
the training and development and time-frame which is written down through key policy
clauses.
Recommendation
Bombardier Transportation India Ltd. as an organisation needs to have a standardised format

of training and development policy which acts as a basic principles and associated guidelines
formulated and enforced by the governing body of an organisation, to direct and limit its
actions in pursuit of long-term goals.
The standardised format suggested here is as follows:
Recommendation
Training and Development Policy
Objectives
The Key objective of training and development policy of the organisation (Bombardier
Transportation India Ltd.) is to help build a skilled, well-trained and professional
workforce; to strengthen organizational leadership; and to adopt leading-edge best practices
to encourage innovation and continuous improvements in performance.
Aims (examples)
• To equip people with the technical skills required

• To provide leadership and management development to all managers within the
Organisation.
• To identify the development needs of the Organisation and those of individuals and
balance the two.
• To ensure that development needs are identified as part of the business planning
process and reviewed regularly.
• To promote the use of the full range of development opportunities, ensuring that
where a formal course is chosen it is the most appropriate solution.
63
• To ensure equality of access to all development opportunities.

• To provide career development for all.
• To provide personal and tailored consultancy services to help individuals and teams
meet their needs.
• To provide effective induction for all new appointees and people moving jobs.
• To ensure the effective delivery of mandatory training e.g. Health, Safety and
Environment, IRIS etc.
• To ensure the appropriate skills are in place to deliver the business strategy
Scope
This policy applies to all the employees of Bombardier Transportation India Ltd. based on
the applicability of the training.
Roles and Responsibilities for Training and Development
The Board and Executive Management Team shall be responsible for ensuring that this
policy is fully implemented, Training and Development opportunities are appropriate and
organisational priorities for training and development are identified annually.
The Middle Managers shall be responsible for ensuring that the employees have annual
performance and development reviews and meaningful personal development plans. They
will also ensure that training and development needs are reviewed regularly and any training
agreed on the personal development plans is implemented within the constraints of the
resources and time frame available.
The Immediate Managers (Supervisors) shall be responsible for identifying any

development needed to enable individuals to meet the job objectives and for ensuring that
adequate time is available to employees to enable them to undertake this development. They
also need to provide feedback on the individuals’ development needs to their line manager
through the job review process.
Employees shall be responsible for ensuring that they follow through their personal
development plan and make the most of all the development opportunities available to
them, both for individual development and to enable them to be more effective in meeting
organisational objectives.
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The Human Resources Team shall act as adviser on the training and development
opportunities available, analyse personal development plans to assist in the prioritization of
individual and organisational training needs and commission internal and external
development activities where this is the most cost effective option to meet the needs. It will
also monitor training attendance and funding allocations to ensure that there are no
organisation barriers inhibiting equal access.
Types of Skill and Competency (Examples)
FUSION – Flow of Unique Skills and Intelligence from Old to New
TM – Technical Mentorship
MAP – Manager Assimilation Program
DTE – Driving Top-team Effectiveness
ACE – Accelerate Career Enhancement
PPM – People Planning Meeting
Other Various Soft Skills and E-Learning
Identification of Training Needs
Policy Clause: -
• Training needs shall be identified on an annual basis through PMP.
• For employees in the management role, training needs shall be derived from the
performance management system and assessment of competencies shall be done
through the assessment centre.
• For Operation, Support services employees and Blue collar employees the needs
shall be projected by the supervisors/controlling officers through the annual
appraisals.
• Assessment of skills shall be done annually to ascertain the skill gaps.
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• Over and above, there shall be organisational interventions like multi-skill wherein
the supervisor shall identify the skills that needs to be learnt by the employee in
order to form multi-functional workforce.
Plan Training Programmes
Policy Clause
• Projected needs shall be assimilated and groups shall be formed on the basis of level,
function, skill / competency, initiative etc. and annual training plan is drawn
accordingly.
• The plan shall contain the dates for each program, venue, target population, number
of participants per program, training hours per program, faculty for the program, etc.
(training Calendar).
• The training and development in-charge shall find the place and venue of the
training and prior booking should be done.
Conducting Training Program
Policy Clause
• Faculty is identified from internal sources, external sources and experts in respective
fields.
• The desired number of employees shall be nominated for the program, seminar or
the workshop.
• Training and development should be pre-defined in its objectives, purpose and time
frame.
Evaluation
• Participants in the training programme shall be required to complete evaluation

sheets that will be distributed during the event, so that the effectiveness of the
programme can be assessed and any modification made thereof.
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• The HR team shall analyse these forms and use them to inform decisions about
similar future training requests.
• Study of effectiveness of the training shall be done every 6 months wherein the
trained personnel and the respective supervisor shall respond to the benefits accrued
out of the training of skill / competency upgradation and the resultant benefits.
• Skill / Competency assessment shall be done to measure the effectiveness of the

training imparted.
• Retraining shall be imparted to an employee if after assessment it is found that

his/her skill or competency level has not improved to the benchmarked standards.
Expert Review: - Criteria for measuring training success
There are four levels of evaluation suggested by Kirpatrick. They are as follows.
Level 1: Reaction – at this level, evaluation measures how those who participated in the
training have reached to it. In a sense, it is a measure of immediate customer satisfaction.
Kirkpatrick suggests the following guidelines for evaluating reactions.
• Determine what you want to find out.

• Design a form that will quantify reactions;
• Encourage written comments and suggestions
• Get 100 per cent immediate response;
• Get honest responses;
• Develop acceptable standards;
• Measure reactions against standards, and take appropriate action;
• Communicate reactions as appropriate
Level 2: Evaluate Learning – This level obtains information on the extent to which
learning objectives have been attained. It will aim to find how much knowledge was
acquired, what skills were developed or improved, and the extent to which attitudes have
changed in the desired direction. So far as possible, the evaluation of learning should involve
the use of tests before and after the programme – paper and pencil, oral or performance tests.
67
Level 3: Evaluate Behaviour – This level evaluates the extent to which behaviour has
changed as required when people attending the programme have returned to their job. The
question to be answered is the extent to which knowledge, skills and attitudes have been
transferred from the classroom to the workplace. Ideally, the evaluation should take place
both before and after the training. Time should be allowed for the change in behaviour to take
place. The evaluation needs to assess the extent to which specific learning objectives relating
to change in behaviour and the application of knowledge and skills have been achieved.
Level 4: Evaluate Results – This is the ultimate level of evaluation and provides the
basis for assessing the benefits of the training against its costs. The objective is to determine
the added value of learning and development programmes – how they contribute to raising
organisational performance significantly above its previous level. The evaluation has to be
based on ‘before’ and ‘after’ measures and has to determine the extent to which the
fundamental objectives of the training have been achieved in areas such as increasing sales,
raising productivity, reducing accidents, or increasing customer satisfaction. Evaluating
results is obviously easier when they can be quantified. However, it is not always easy to
prove the contribution to improved results made by training as distinct from other factors and,
as Kirpatrick says, ‘Be satisfied with evidence, because proof is usually impossible to get.’
Perhaps the most powerful method of demonstrating that learning programmes pay is to
measure the return on Investment.
Return on Investment as a method of evaluation
Return on Investment (RoI) is advocated by some commentators as a means of assessing the

overall impact of training on organisational performance. It is calculated as:
Benefits from training (Rs.) – Costs of training (Rs.)

X 100
Costs of training (Rs.)
Source: - The Process of Learning and Development, page 696, Armstrong’s handbook of
Human Resource Management Practice
68
Figure 9.2: Criteria for measuring training success
10. Leave & Holidays
10.1 Introduction
The innovation of paid leave reflects what may be termed “a quest for leisure”. The extent of
the leave and whether it is paid in whole, in part, or at all is generally a matter of agreement
between an employer and an employee (United States Department of Labor, 2009). The
introduction of paid leave for the workers, in practice as well as in law, is based on the simple
principle, on one hand, the worker’s right to leisure, providing him with an opportunity to
develop his own personality and on the other, not only to help him to preserve his health, but
also to help him to recuperate his strength in the best interest of production. If leave and
holidays with pay are properly utilised as they are mean to be, it can well mean a complete
escape from stale atmosphere and monotony and hum-drum of every-day life and thereby
benefit from relaxation to return to his duties or job with fresh enthusiasm and renewed
vigour. From such considerations in almost all the countries of the world today, the practice
of allowing workers several consecutive days of leisure, and leisure and relaxation from time
to time, is regarded as a boon (Kumar, 2010).
10.2 Types of Leave and Holidays
Leave is different from holidays and days-off, since it aims to fulfil different objectives of
work life sphere. Employment laws set the umbrella framework for deciding different
dimensions of leave, like category or types, eligibility, duration etc. The categories of leave
and holidays categorise by many of the companies are as follows,
• Privileged Leave
• Casual Leave
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• Sick Leave/Medical Leave
• Maternity Leave
• Paternal Leave
• National and Festival Holidays
• Study Leave
• Leave for General/Bye Election for Parliament and State Assemblies
10.3 Comparative Study of Leave and Holidays under various Laws and Act
Earned Leave (Privileged Leave)
Factories Act, 1948
Section 79
As per the provisions of Factories Act, 1948, any worker covered under the Act who has
worked for at least 240 days in a calendar year becomes eligible for earned leave which he
can enjoy in the subsequent year.
In case of an adult, he/she becomes eligible for a day leave for every 20 days worked in
previous year.
In case of child, (i.e. a person who has not completed his/her fifteenth year of age) they
become entitled to one day leave for every 15 days worked during previous year.
These earned leaves can be carried forward to an extent of 30 days in case of adult and not
more than 40 days in case of child.
Casual Leave
Casual leave is generally understood as the leave that is not earned while on duty. Prior
intimation is needed to be given to the employer if an employee needs to avail casual leave. A
leave can be treated as casual leave only if it has been sanctioned / granted by the employer.
The quantum of casual leave too, is like sick leave and is fixed by the company/organization
70
in accordance with the State’s Shops and Establishment Act or any other law applicable to it,
except where it has been specifically provided by law.
Casual leave under the Factories Act, 1948
There is no provision for casual leave under the Factories Act, 1948. The expression leave
means leave of absence. In other words, it means the permission obtained from an employer,
exempting him (employee) from his duty. Even when rules are not in existence, prescribing
the procedure which has to be followed to obtain sanction for leave, it is reasonable
expectation from an employee to make an application for obtaining leave.
The leave rules provide that casual leave must be so arranged as to cause the minimum
interruption of work; it is further indicative that before availing it, sanction for casual leave
must be obtained before enjoying it and the employer concerned is entitled to his final say in
the matter.
Apprentices Act, 1961 & Apprenticeship Rules, 1992
Rule 13
The Act entails an employee to avail a maximum of 12 days of casual leave in a year.
Except for the workers covered under the Acts mentioned above, casual leaves are available
as per the company policy. For establishments which are not covered under the ESI Act, the
workers get sick leave as per company policy or standing orders.
Sick Leave/Medical Leave
Sick leave is the leave that an employee can avail in case of sickness of self or relative (as
specified under law). Sick leave provides pay to employees when they are out of work due to
illness. Most of the times the quantum of such leave is fixed by the company/organization in
accordance with the State’s Shops and Establishment Act or any other law applicable to it, but
then some legislations do contain specific provisions in this respect. Sick leaves accumulated
in a year can be carried forward and availed in the next year. The quantum of leaves that can
be carried forward should commensurate to the one provided under the applicable law.
Apprentices Act, 1961
Section 15 (Rule 13)
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Any person appointed as an apprentice under the Act can avail medical leave for a maximum
period of 15 days in a year and in case of accumulated leave up to 40 days in a year.
Maternity Leave
The Central Government passed the Maternity Benefit Act in 1961 which extends to the
whole of India and applies to every establishment belonging to the government and to every
establishment which may be industrial, commercial, agricultural or otherwise.
Maternity Benefit Act, 1961
Section 4
The Act provides 12 weeks as the maximum period for which any working woman shall be
entitled to maternity benefit. She can avail this benefit as 6 weeks upto and including the day
of her delivery and 6 weeks immediately following the day of her delivery.
Section 9
In case of miscarriage or medical termination of pregnancy, a female employee can avail

maximum 6 weeks leave with average pay from the date of miscarriage or termination of
pregnancy.
Section 10
Also additional leave with pay for upto 1 month can be availed on production of proof,
revealing illness due to pregnancy, delivery, miscarriage, or premature birth.
Section 13
Where a female employees needs to undergo tubectomy operation she can avail leave with
wages at the rate of maternity benefit for up to two weeks immediately following the day of
her operation.
Factories Act, 1948 Section 79
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The Act makes provision for maternity leave with wages for expecting mothers for a
maximum period of 12 weeks.
Paternity Leave
The Central Government in 1999 by notification under Central Civil Services (Leave) Rule
551 (A) made provisions for paternity leave for a male Central Government employee
(including an apprentice and probationer) with less than two surviving children for a period of
15 days to take care of his wife and new born child. He can avail this leave 15 days before or
within 6 months from the date of delivery of child. If such leave is not availed within the
period, it shall be treated as lapsed.
For paternity leave he shall be paid leave salary equal to the pay last drawn immediately
before proceeding on leave.
Following Central Government’s move, many State governments have also implemented
similar provisions for its employees.
10.4 National and Festival Holidays
Republic Day (January 26), Independence Day (August 15) and Gandhi Jayanti (October 2)
are the three national holidays observed in India. On these days all institutions, irrespective of
under which law they are covered, or whether they are public or private organizations or
MNCs should necessarily remain closed.
The festival holiday are decided based on the local festival of that locality and are granted to
the employee’s in accordance with the company policies.
10.5 Leave for General/Bye Election for Parliament and State Assemblies
During the general elections in the country or the state where the employee is residing he is
eligible for leave on the polling day. For general elections of Lok Sabha and Vidhan Sabha or
any of the bye election one day leave is been declared to all employees for the polling day.
(Sec.3A of Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963)
Under Industries Association Act, 1963 Section 3 (A) also there is a provision for such leave.
73
Comparison of leave policies at various sites
Leave for Management Trainees
Savli Maneja
Calendar year will be applicable in the case

of leave.
12 CL will be provided to these trainees from

the start date of training to the applicable end
date of training.
At the end of their training, subject to

appraisal/confirmation, they would be taken
into management staff cadre and be kept on
probation of 6 months. During probation
period, they would be availing pro-rata CL
and SL only. The calculation will be from the
start date of probation until the end of that
calendar year.
Privilege Leave
Savli Maneja
Privileged leave for white collar employees Privileged leave for grade O to A, employees
will be eligible for 30 days per year, if he/she will be for 30 days per year.
has 240 days attendance in the previous
calendar year.
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Privileged leave can be accumulated up to Privileged leave can be accumulated up to

210 days beyond which it lapses if not en- 210 days.
cashed.
Privileged leave has to be applied for at least Privileged leave, if taken for long duration
15 days in advance. (more than 5 days), should be applied and
sanctioned 15 days in advance.
Any weekly off, paid holiday intervening the Any weekly off, paid holiday intervening the
PL period shall be considered as PL for all PL period shall be considered as PL for all
employees. PL cannot be suffixed or prefixed employees. PL cannot be suffixed or prefixed
by SL or CL. by SL or CL.
PL can be enjoyed on maximum 4 occasions On any occasion, PL can be taken for

in a calendar year including PL minimum half day.
adjusted/enjoyed on ground of prolonged
sickness also. On any occasion, PL should be
taken for minimum 3 days.
In case of prolonged sickness, PL can be In case of prolonged sickness, PL can be

adjusted in lieu of SL in case there is no SL adjusted in lieu of SL in case there is no SL
balance or SL is totally exhausted for the balance or SL is totally exhausted for the
sickness. However, in such case, all rules of sickness. However, in such case, all rules of
SL shall be applicable to such PL. SL shall be applicable to such PL.
Casual Leave
Savli Maneja
Casual leave is credited to an employee’s Beginning for every calendar year, casual
account on a pro-rata basis subject to a leave is credited to an employee’s account
maximum of 10 days leave for white collar subject to a maximum of 4 days leave for
employees white collar employees.
Leave calendar year will be considered from Employees who join in mid-year and on
1st January to 31st December of every year. probation are eligible for availing pro-rata
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Employees on probation can avail casual CL till the end of the calendar year.
leave on a pro-rata basis.
A maximum of three consecutive days of A minimum of half day CL and maximum of

casual leave can be availed. Casual leave three consecutive days of CL can be availed.
cannot be accumulated and it will not be Casual leave cannot be accumulated nor
carried forwarded to the next year and carried forward to next year. Any balance CL
balance CL will be lapsed at the end of the shall lapse at the end of the calendar year.
year. Half day CL can be taken.
CL cannot be prefixed or suffixed to SL/PL. CL cannot be prefixed or suffixed to SL/PL.

Weekly off and holidays cannot be prefixed Festival holidays and weekly holidays may
and suffixed both with CL. If so, weekly off either be prefixed or suffixed with casual
or holidays will be considered as CL. leave, but cannot be prefixed or suffixed at
the same time.
Maternity Leave
Savli Maneja
Married female employees will be eligible Female employees will be eligible for
for maternity leave for a period of 12 weeks maternity leave for a period of 12 weeks (i.e.,
(i.e., 84 days) four weeks before and eight 84 days) which could be availed as in four
weeks after the delivery, for a maximum of weeks before and eight weeks after the
two deliveries. In case of miscarriage, leave delivery, for a maximum of two deliveries. In
to the extent of six weeks will be applicable. case of miscarriage, leave to the extent of six
weeks will be applicable.
Sick Leave
Savli Maneja
Number of leave – 10 days for a calendar The white collar employees shall be given 4
year to white collar employee. days of sick leave in a given calendar year.
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SL for 3 or more days at stretch should be SL for more than two days should be
supported with medical certificate on the date supported by medical certificate from a
of resumption of duty. Also all efforts should registered medical practitioner. If an
be made to inform the company about such employee, is absent for a period exceeding a
absence with certificate of unfitness during week because of sickness, he/she should also
the period of sickness. produce fitness certificate from attending
physician.
Half day SL can be taken Half day SL can be taken.
Accumulation of SL is allowed upto 120 Accumulation of SL is allowed upto 120

days. SL cannot be clubbed with CL and PL. days. SL cannot be clubbed with CL and PL
In case of resignation termination or unless approved by site GM and Head HR for
otherwise SL will get lapse. valid reasons.
In case of prolonged sickness, after all SL’s

are exhausted the further period of absence
due to sickness can be covered by putting PL
for those days in lieu of SL. In such case, rule
of PL shall be applicable to such SL e.g.,
W/off, PH, falling in between such period
shall be considered as PL. However, medical
certificate is must.
Employees who join in mid-year and on

probation are eligible for availing pro-rata SL
till the end of the calendar year.
This policy is applicable for employees not

covered under ESI scheme. However, if ESI
scheme is introduced for any of the employee
it will be withdrawn.
Table: 10.1 Comparison of Leave of various sites
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Comparison of List of Holiday of various sites
Place Savli Maneja Bhikaji Cama,
Date New Delhi
26 Jan Republic Day Republic Day Republic Day
20 Feb Maha Shivaratri Maha Shivaratri
08 Mar Dhuleti (Holi) Holi Holi
06 Apr Good Friday
02 Aug Raksha Bandhan Raksha Bandhan Raksha Bandhan
10 Aug Janamashtami
15 Aug Independence Day Independence Day Independence Day
19 Sept Ganesh Chaturthy
02 Oct Gandhi Jayanti Day
24 Oct Dussera Dussera Dussera
13 Nov Diwali Diwali Diwali
14 Nov New Year New Year
15 Nov Bhai Beej Bhai Beej
16 Nov Diwali Diwali
28 Nov Guru Nanak’s Birthday
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25 Dec Christmas Christmas
Table: 10.2 Comparison of Holidays of various sites
Recommendation
Leave Policy
Objective
The key objective of leave policy is to provide guidelines for permissible leave from work.
Scope
All employees including trainees of Bombardier Transportation India Ltd
Responsibilities
The respective immediate manager shall be the recommending authority. However, the
sanctioning authority shall be with the respective Head of Department. Based on the approval
of the HOD, the immediate manager shall escalate the leave granted to the HR team.
The HR team shall keep the track record of the leave granted to an individual employee.
The leave entitlements are as follows,
Privileged Leave
Sick Leave
Casual Leave
Maternity Leave
Paternity Leave
Study Leave
Bereavement Leave
Leave Not Due
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Privilege Leave
Policy Clause
• Employees who have completed 240 days attendance in the previous calendar year
shall be eligible for 30 days of privileged leave per year.
• In case of employees who have joined midyear and have completed 2/3 number of
total days from day one they joined the organisation up to the end of the calendar year,
shall be eligible for proportionate leave at the above rate.
• Privilege leave can be enjoyed on 4 occasions in a calendar year including privilege

leave adjusted/enjoyed on ground of prolonged sickness.
• The minimum number of days for a privilege leave shall be of 3 days.
• Privilege leave shall be applied and sanctioned 15 days in advance. Privilege leave
with short notice shall be considered only in emergency cases and it shall be duly
approved by the site General Manager and Director HR.
• Any weekly off, paid holidays intervening, the privilege leave shall be considered as
privilege leave for all the employees.
• Privilege leave cannot be suffixed or prefixed by Sick leave or Casual leave.
• Privilege leave can be accumulated up to 90 days beyond which it lapses if not en-
cashed.
• Employees can en-cash their privilege leave keeping a minimum balance of 30 days.
Encashment may be made only once, at any time of the year and shall be encashed at
(Basic) as on date of encashment.
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• Encashment amount shall be paid through salary on the respective month. However,
encashment shall be admissible only when the employee has taken maximum 10 days
leave in a particular calendar year.
• No privilege leave can be availed during the last 30 days of the notice period.
• Employee is encouraged to furnish his/her contact details before proceeding for leave
period.
• Approval of privilege leave shall be at the discretion of the management taking into
consideration the work exigency.
Sick Leave
Policy Clause
• An employee can enjoy 7 days of sick leave in a calendar year.
• An employee can avail a half day of Sick Leave.
• Sick Leave can be accumulated up to 32 days. Beyond which, it will automatically be

lapsed.
• No encashment of sick leave can be done.
• Sick Leave for more than two days should be supported by medical certificate from a
registered medical practitioner. If an employee is absent for a period exceeding a week
because of sickness, he/she should also produce fitness certificate from attending
physician
• Employees who join in mid-year and on probation are eligible for availing pro-rata
sick leave till the end of the calendar year.
• In case of prolonged sickness, privilege leave can be adjusted in lieu of sick leave in
case there is no sick leave or that sick leave is totally exhausted. However, in such
case, all rules of SL shall be applicable to such privilege leave.
• Sick leave application form should be filled within 2 days on returning to duty of the
availed leave.
Casual Leave
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Policy Clause
• Employees shall be given 7 days of casual leave in a calendar year.
• Maximum of three consecutive days of casual leave can be availed at a time.
• Employees can avail half day of casual leave. However, for availing half day leave,
one must ensure minimum four hours of duty before or after availing such leave.
• Employees who join in mid-year and on probation are eligible for availing pro-rata
casual leave till the end of the calendar year.
• Casual leave cannot be prefixed or suffixed to sick leave/privilege leave. Holidays and
weekly holidays may be either be pre-fixed or suffixed with casual leave, but cannot
be pre-fixed and suffixed at the same time.
• Weekly off, paid holidays intervening the casual leave shall not be counted as part of
the leave. However, leave which were taken as casual leave initially and have
exceeded 5 days or more than in such case weekly off or paid holidays will be
considered as part of the leave.
• Casual leave can neither be accumulated nor be carried forward to the next calendar
year. Any balance casual leave shall lapse at the end of the calendar year.
• Any leave without the due approval of the concern authority shall be considered
as lost-of -pay.
Maternity Leave
Policy Clause
• Female employees shall be eligible for maternity leave for a period of 12 weeks (i.e.,
84 days), 6 weeks before and 6 weeks after the delivery, for a maximum of two
deliveries.
• An additional leave with pay for upto 1 month can be availed on production of proof,
revealing illness due to pregnancy, delivery, miscarriage, or premature birth.
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• In case of miscarriage or medical termination of pregnancy, a female employee can

avail maximum 6 weeks leave with average pay from the date of miscarriage or
termination of pregnancy.
• Where a female employees needs to undergo tubectomy operation she can avail leave
with wages at the rate of maternity benefit for up to two weeks immediately following
the day of her operation.
Paternity Leave
Policy Clause
• Paternity leave shall be given for male employee (including an apprentice and
probationer) for a period of 5 days to take care of his wife and new born child.
• This leave must be availed 7 days before or within 1 month from the date of delivery
of child. If such leave is not availed within the period, it shall be treated as lapsed.
Study Leave
Policy Clause
• Employees who are granted study leave and are sponsored by the company for pursing
higher studies shall, before proceeding on leave, have to sign a bond of contract to
serve the company for minimum three years of service after returning back to job or in
default, pay the company an amount in lieu thereof, so that the company’s efforts and
resources on the development of individual are gainfully utilized.
• An employee who is under a bond to serve the Company for a stipulated period shall
not be eligible for any other study leave during the duration of the bond.
• An employee who is under the study leave shall not be entitled to wages apart from
the stipend that he/she is entitled to, for the pursue of his/her study. However, this
clause is not applicable to courses of short duration.
• The stipend shall be decided by the management based on the expense of the study,
duration and place of pursuing one’s study.
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Bereavement Leave
Policy Clause
• Leave shall be granted to an employee for the death of an immediate family member
(defined as parents, spouse, children, brother or sister).
• Maximum 3 days of bereavement leave can be availed by the employees.
Leave Not Due
Policy Clause
• Where an employee has no leave to his credit and he/she still requires leave, such
leave may be granted at the discretion of the respective manager in consultation with
the Site Manager and Director HR. However, leave not due will be subjected to loss of
pay.
National and Festival Holidays
The list of holidays to be followed across all sites in India
1. Republic Day
2. Maha Shivaratri
3. Holi
4. Rasha Bhandhan
5. Independence Day
6. Ganesh Chaturthy
7. Gandhi Jayanti
8. Dussera
9. New Year
10. Bhai Beej
11. Diwali
12. Christmas
Leave for General/Bye Election for Parliament and State Assemblies
Policy Clause
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• Every person who are employed in the organisation and are entitled to vote at election
to the House of People or the Legislative Assembly of a state shall, on the day of poll,
be granted a holiday.
• The organisation shall remain closed in the notified areas where general elections to
Lok Sabha or State Legislative are scheduled to be conducted.
• In connection with bye-election to Lok Sabha/State Assembly, only such of the

employees who are bona-fide voters in the relevant constituency should be granted
special casual leave on the day of polling.
Apprentices Leave Policy
Policy Clause
• An apprentice shall be eligible for casual leave for a maximum period of 12 days in a
year.
• An apprentice shall be eligible for sick for a maximum period of 15 days in a calendar
year. He/she can accumulate sick leave upto 40 days.
• An apprentice shall also be eligible for extraordinary leave upto a maximum period of
10 days in a calendar year.
Overtime
Policy Clause
• As per the requirement of the business if an employee stays for extra hours for
minimum of one hour or more, he will be eligible for overtime.
• Calculation of overtime pay will be on full hours and not on any part thereof.
• OT will be operated as per the provisions of the Factories Act, 1948.
Compensatory Off
Policy Clause
• When an employee works on any of the paid holidays or weekly off and that he have
worked for minimum 8 hours or that he have worked for 2 hours or more on any of the
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working days beyond their shift timing, then he will be entitled to take a compensatory
off.
• Employees shall apply for the compensatory off on the prescribed form. This
perscribed form can be obtained from the HR department. However, the review of
such application and approval or rejection of the compensatroy off will be at the
discretion of their own departmental head.
• Compensatory off should be availed within 60 days from the date working, failing
which will be considered as lapsed.
11. Retention
11.1 Introduction
Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs. How to retain valuable employees is one of the biggest
problems that plague companies in the competitive marketplace. Employees are the lifeline of
an organization and contribute effectively to its successful running and profit making. An
organization can’t survive if the employees are not serious about it and are more concerned
about their personal interests. “Every organization invests time and money to groom a new
joinee, make him a corporate ready material and bring him at par with the existing
employees” (Tangencesco, 2008). The organization is completely at loss when the employees
leave their job once they are fully trained. Employee retention takes into account the various
measures taken so that an individual stays in an organization for the maximum period of time.
11.2 Definition
According to Get Les Mckeown's employee retention is a systematic effort by employers to

create and foster an environment that encourages current employees to remain employed by
having policies and practices in place that address their diverse needs. It has also been defined
as the various policies and practices which let the employees stick to an organization for a
longer period of time (Management Study Guide, 2008). It is the organisation policies and
practices designed to meet the diverse needs of employees and create an environment that
encourages employees to remain employed.
11.3 Need and Importance of Employee Retention
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In today’s new era, employee retention is the key concern for any organisation. Retaining of
people in a company provides the following advantages.
Reduce Cost of Turnover
The cost of employee turnover adds hundreds of thousands of money to a company’s

expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs,
training costs and productivity loss), industry experts often quote 25% of the average
employee salary as a conservative estimate (Compare Infobase Limited, 2007). So retention
of employee can help in reducing cost of turnover.
More Productivity
It has been observed that employees tend to work harder if they have a feeling of security and
they feel they are going to stay in the company for long time (Gupta, 2007). So
retaining of employee enhances more productivity and increase the profit of the organisation.
Cut Loss of Company Knowledge
Retaining of employee ensure that they are keeping those people on board who have very
good knowledge base about the company and its processes. This helps in managing day to day
activities seamlessly. On the other hand, when an employee leaves, he takes with him
valuable knowledge about the company, customers, current projects and past history
(sometimes to competitors). Often much time and money has been spent on the employee in
expectation of a future return. When the employee leaves, the investment is not realized.
Add Stability
In addition, retaining employees provide stability to the company. By seeing a group of

retained employees, new employees have more confidence of receiving a healthy work
environment in the organisation.
Goodwill of the company
The goodwill of a company is maintained when the attrition rates are low. Higher retention
rates motivate potential employees to join the organization. (Compare Infobase Limited,
2007)
Regaining Efficiency
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If an employee resigns, good amount of time is lost in hiring a new employee and then
training him/her and this goes to the loss of the company directly which many a times goes
unnoticed. And even after this you cannot assure us of the same efficiency from the new
employee.
11.4 Employee Retention Tools
The various ways and tools that will retain the employees in the organisation are:
Communication
Communication has become so heavily stressed in the workplace that it almost seems cliché.
However communication couldn't be more important in the effort to retain employees. Be sure
that team members know their rules, job description, and responsibilities within the
organization. Communicate any new company policies or initiatives to all employees to be
sure that everyone is on the same page. Nobody wants to feel that they are being left out of
the loop.
Share Knowledge
The highest percentage of information retention occurs when one shares that information with
others. Having team members share when they have learned at a recent conference or training
workshop will not only increase the amount is information they will retain, but also lets a
team member know that he is a valuable member of the organization. Facilitating knowledge
sharing through an employee mentoring program can be equally beneficial for the team
member being mentored as well as mentor.
Decision Making
It is incredibly important to include team members in the decision making process,

especially when decision will effect an individual's department or work team. This can help to
create of employee involvement and will generate new ideas and perspectives that top
management might never have thought of in their meetings.
Help Balance Personal life and Work
Family is important to team members. When work begins to put a significant strain on one's
family no amount of money will keep an employee around. Stress the importance of balancing
work and one's personal life. Small gestures such as allowing a team member to take an
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extended lunch once a week to watch his son's baseball game will likely be repaid with
loyalty and extended employment with an organization.
Bonus for Performance
To get more work out of the employees, remuneration in the form of bonus helps to retain
individuals who are highly productive. It doesn't add extra – pressure on the company's
budget. It can be arranged by cutting a part of the salary hikes.
Loyalty Bonus
After successful completion of a specified period of time in an organization rewarding

employees with money or position gives them recognition and satisfaction. It also gives
encouragement to fellow employees.
11.5 Data Survey Analysis
Inference: - It can be inferred that the average score was just at 2.8 out of 5 with a standard
deviation of 1.07. 30% of the respondents have the opinion that the company have a policy
that attracts talents and retain best employee across all sites. Of which 3% have strongly
agreed to the statement and 27% have just agreed to the statement. 37% of the respondents
have taken as neutral opinion and 25% of the respondents have given a negative view.
When a comparison was made between Savli and Maneja, 28% employees in Savli have
agreed to the statement. 36% of the respondents have taken a neutral view and another 36%
have negated the statement. On the other hand, 30% of the employees in Maneja have agreed
to the statement. 38% of the respondents have taken a neutral view and another 32% have
negated the statement.
This is one of the areas which the respondents have rated the least. The average score was at
2.8 out of 5. Attrition seems to be at the higher margin and there is no HR policy to tackle
retention of the employees. Apart from the employees retentions tools suggested, one of the
policies the HR team can implement is to introduce retention bonus which will boost the HR
policy and procedures.
Recommendation
Policy on Retention Bonus
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Staff retention is about finding the best of employee for the job and finding ways of keeping
these employees with the organisation. Although all employees are valuable, some employees
have skills that are vital to the organisation without which service delivery will be seriously
jeopardised. In order to retain these employees through a critical business cycle retention
bonus as an incentive shall be paid to the key employees.
Scope
All employees of Bombardier Transportation India Ltd
Policy Clause
• In order for retention to be applied consistently across all departments, employees

must comply with the following criteria, which must be approved by the Management
Team in consultation with the Human Resource Department. It must be emphasised
that the retention of employees shall not be automatic and shall be at the discretion of
the management.
• All requests for an employee to be retained must be made in writing, accompanied by

relevant motivation and supported by the respective responsibility manager.
• If an employee receiving a retention bonus, he or she is expected to remain in the paid

appointment for which they received the bonus for one year the last bonus payment.
• Request to retain employee on higher salary levels shall be considered subject to the
criticality of the post and on the condition that funds are approved by the management.
It will be subjected to job evaluation and that the employee being retained meets with
all appointment requirements specify in the job criteria.
• If, for any reason, he or she leaves the organisation before the completion of the one
year of employment, the employee shall be required repay the full amount of the
bonus.
• Preference shall be given to those retention applications which would promote

transformation in the department, with priority being given to occupations classified as
scarce skills.
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• In a case where retention is required for an employee who has attained the compulsory
retirement age (superannuation), such retention shall be addressed through an addition
to the establishment arrangement where the employee shall enter into a fixed term
contract with the department not exceeding two years in duration.
12. Reward and Recognition

12.1 Introduction
The most asked question in today’s business is, ‘are you interested in creating a family work
atmosphere in which employees feel valued for their contributions to the business?’ We all
know how difficult this is to achieve. In a competitive business climate, more business owners
are looking at improvements in quality while reducing costs. Every organisation wants a
strong economy and this has resulted in a tight job market. So while businesses need to get
more from their employees, their employees are looking for more out of them. One of the
ways to motivate the employees and change work habits and key behaviour to benefit the
business is by ways of reward and recognition. But the question is: what is this reward and
recognition? And what is the difference between Reward and Recognition?
Reward and Recognition are terms often used interchangeably; however, reward and
recognition systems are separate in terms and meaning altogether. “Employee reward systems
refer to programs set up by the company to reward performance and motivate employees on
individual and/or group levels”. They are normally considered separate from salary but may
be monetary in nature or otherwise have a cost to the company. On the other hand, employee
recognition is programs often combined with reward programs. “They are intended to provide
a psychological satisfaction, a due acknowledgement of the good work done”. Reward and
Recognition are not entitlements based on competency to the employee; rather reward and
recognition emphasizes excellence or achievement. Merit pay increases, then, are not part of
an employee reward system. Normally, they are an increase for inflation with additional
percentages separating employees by competency.
12.2 Importance of Reward and Recognition
• Rewarding and Recognition of employees for outstanding job performance encourages

them to improve their productivity and quality of work.
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• Employee rewards can make employees feel more satisfied with their work because
they know they are making a positive contribution to a high-performance organisation
where everyone matters.
• Employee recognition programs, if properly constructed, are invaluable tools for

communicating not only goals, job expectations and performance standards, but also
values such as organisational commitment, employee responsibility and teamwork.
To make the employees’ reward and recognition policy effective and well-designed it should
have the following key characteristics.
Clearly Stated Objectives
Reward and Recognition should be in line with the organisational goals and this should be
communicated in simple terms to all employees by the management.
Reliable Measurement
Employees do not respond favourably to reward and recognition scheme that do not
adequately and reliably measure job performance outcomes.
Reasonable Performance Standards
Different performance levels must be well-defined and it should be based on a thorough

analysis of historical performance data. Standards established for rewarding employees work
best if they are realistic but challenging.
Motivating Rewards
Studies have shown that employees improve their performance significantly if they receive
formal recognition of their achievements.
Defined Guidelines
Specific guidelines should be developed to ensure that recognition scheme run smoothly and
all employees are treated fairly.
Monthly, Quarterly, Annual Performance Feedback
It is important to communicate employee progress every month or quarter. Departmental and

divisional results can be posted on a bulletin board or communicated in an email.
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50/30/20 Rule of the programmes
Research and survey have proved that direct appreciation by the manager and peer, in that
order, goes a long way in motivating employee.
12.3 Data Survey Interpretation

It has been inferred that 45.3% of the respondents have the opinion that the Rewards and
Recognitions will enhance a feeling of satisfaction to do the job better. Of which 12% have
strongly agreed to the statement and 33% have just agreed to the statement. 34.6% of the
respondents have given a neutral view and 20% of the respondents have disagreed to the
statement. Of which 16% have just disagreed to the statement and 4% have strongly agreed to
the statement. Employees in Savli have shown a very positive response in this regard with
56% of the respondents giving a mandate of agreeing to the statement. 28% of the
respondents have given a neutral view and 16% have disagreed to the statement. However,
when it comes to Maneja 40% of the respondents agreed to the statement. 38% have a neutral
opinion to the statement. And 22% of the respondents disagreed to the statement. The
aggregate average is at 3.3 out of 5 and with a standard deviation at 1.07.
The indication is that, the employees’ satisfaction is at a higher end when it comes to reward
and recognition.
Based on the explorative inquiry it was found that both the sites namely Savli office and
Maneja office have reward and recognition programs. The reward and recognition program at
Savli office is called KAIZEN AWARD. And the reward and recognition program at Maneja
is more of a SUGGESTIVE SCHEME. Apart from these they have various awards and gift
for the employees such as birthday gifts, games competition awards etc.
Kaizen Awards
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This award is classified into individual and team awards based on quarterly and annual basis.
This Kaizen award is based the suggestive ideas put forward by the employees. Where points
are accumulated and the highest point scorer at the end of the quarter is given the award. This
Kaizen award is followed in Savli.
Suggestion Scheme
This suggestion award is based on the ideas suggested by the employees for the process
improvement.
Therefore, based on the finding mentioned above we can conclude that Bombardier
Transportation India Ltd as an organisation has reward and recognition for the employees,
though it is not followed evenly across all sites. However, in its road to harmonisation and
standardised of HR policies it need to have a standardised reward and recognition policy
which is followed across all India.
Bombardier transportation India Ltd., as an organisation that is fast growing, needs to have a
well-designed reward and recognition policy that is even and followed across all India for the
employees. For it is said that a well-designed employee reward and recognition programs pay
big dividends. It is also often said that companies often throw money at employees and expect
huge returns on their investments. But why these employees’ incentive programs don’t work?
It is usually because they were improperly designed. The organisation can lose huge resources
if the organisation rewards employees simply for meeting the job expectations. It can also
deteriorate the morale of the employees if the performance standards are set too high.
Recommendation
Reward and Recognition Policy
Objective
Reward and Recognition is acknowledging the high performers of the organisation, thereby
bringing in achievement orientation amongst employees and thus creating an organisation
nurturing performance and innovation. It is also recognition employee as a valuable asset to
the organisation in its realization to the goals and mission of the organisation.
Scope
All employees of Bombardier Transportation India Ltd
Recognition Policy
The key purpose of recognition is to contribute to the happiness of the employees by
acknowledging, participating and celebrating in the employees’ special moments.
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Wall of Fame: Every month the star performer of the team and the team star performer of the
plant in term of TAT (Turn-Around-Time), Quality and Productivity will be displayed in the
Wall of Fame Board.
Birthday: The employee would be greeted by a birthday card & Sodexo gift pass worth Rs.
1000 on the day of his/her birthday by the team. A cake cutting function shall be held on the
last working day of the month for the employees who birthday falls in that respective month.
This shall be held by their respective team.
Wedding: On the occasion of the wedding of the employees a Sodexo gift pass cheque of Rs.
5000/- would be presented to the bride/bridegroom.
Acknowledging Good Performance of the Child/Children in Examination: Employees’

children who have topped the board exam or any other competitive exams will be recognized
by awarding an amount of Rs. 10000 as scholarship scheme.
Policy Clause
• The HR team will maintain the wall of fame board and this shall be updated every first
working week of the month.
• The HR Department shall maintain the database required for the execution of the
policy.
• The Head of Department of each team shall send the nominees of the best performer
on the last work date of the month.
• For the purpose of the birthdays, the date as recorded at the time of the joining the
company shall be considered.
• In the case of marriage of the employee, intimation should be sent to the HR

Department well in advance to facilitate the presentation on time.
• The performance of the child/children of the employee should be communicated to the

HR Department along with supporting documents.
Reward Policy
Reward is a token of appreciation for the contribution or recognition of service, effort or
achievement to the employees who have made significant improvement in the work processes
and effectiveness.
Term and Condition/Criterion

Awards will be given to employees whose contributions have made a significant impact on
the functioning and business of the organisation.
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The Top Performer based on the outstanding performance or contribution shall be identified
by the Head of Department.
The factors to be taken for the consideration are as follows,
• TAT (Turn-Around Time): Time taken to complete a certain task within the defined
time line without defect leading to time saving and avoidance of rework.
• Quality: A measure of excellence or a state of being free from defects, deficiencies

and significant variations, brought about by the strict and consistent adherence to
measurable and verifiable standards to achieve uniformity of output that satisfies
specific customer or user requirements.
• Cost Effectiveness and Efficiency: Suggestions/Actions which result in substantial

saving to the company.
• Creative Innovation: Suggestion leading to process improvement in quality, devising

new ways of working in the organisation that resulted in time saving and easier work
processor.
• Client Focus/Customer Orientation: Going out of one’s way to help customers and
meeting their requirements, reflecting extraordinary service orientation to achieve
customer delight.
• Revenue Generation: Suggesting new ideas that lead to increased revenue of the
organisation.
• Team Spirit: The spirit of group through willingness and cooperation shown by an
individual employee in making the team successful.
The employees would be rewarded for their contribution through five categories of awards as
given here under:
• Good Work Done
• Performers of the Month
• Performers of the Quarter
• Team Award
• Annual Award
Good Work Done
• Appreciation of good work done within the Department that sets an example for the
rest of the employees, would be done by highlighting the contributions through an
appreciation letter by the HOD and display on the Notice Boards
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• The HOD at his discretion may send the employee a gift (maximum Rs.500/-). The
amount would be given in the form Sodexo gift pass.
• Intimation shall be sent to the HR Department, to facilitate the reimbursement and

publicizing the contribution. This award may be given as and when employees make
such contributions.
Performers of the Month
• The award is for individual performance of the employees.
• These nominations should clearly bring out contributions of the employee in details;
explaining his/her efforts and results achieved in terms of TAT, Quality, and Team
Spirit. This should be based on a daily report that the HOD should maintain.
• The award would consist of a certificate signed by the Site GM and Head HR and an
amount of Rs. 1000/- payable by Sodexo gift pass as token of appreciation.
• The performer of the month will be publicly recognized by displaying of the

employee’s photo and name in the WALL OF FAME.
Performers of the Quarter
• This is to identity the consistent performer of the quarter.
• These nominations should clearly bring out contributions of the employee in details;
explaining his/her efforts and results achieved in terms of Cost Effectiveness and
Efficiency, Client Focus and Revenue Generation.
• This should be based on a report that the HOD maintains.
• The nominations would be discussed in the Management Committee Meeting. The

results should be described in terms of benefits that may have accrued to the company.
• A second nomination during the same financial year for reasons of repetitive
exceptional performance could be possible under the scheme.
• The award would consist of a Certificate signed by Site GM and HR Head and an
amount of Rs.2500/- payable by Sodexo gift pass as token of appreciation.
• The performers of the quarter shall be publicly recognized including insertions in the
company’s newsletter. The HR head of the factory shall announce the names in the
plant general employees meet. The name shall also be displayed on the notice board.
97
Team Award
• As and when any cross-functional team working on an assignment exceeds the
requirements laid down for the work or achieves a milestone.
• The contributions shall be highlighted by the management committee to the HR
Department after assessing the various Departments in the plant. The HR Department,
on receiving the nomination, shall obtain the approval of the Site GM and Director HR
on the same and process for the award.
• The award would consist of a certificate signed by the Site GM and HR Head and an
amount of Rs. 7500/- payable by kind or cheque as token of appreciation.
• The performers of the quarter shall be publicly recognized including insertions in the
company newsletter.
Annual Award
• The award is to recognize the “Best Performer” of the year.
• There would be one award in this category. The nominations would be from amongst
the quarterly award winners.
• HR Head would make the presentation of the nominated persons. And the Managing
Committee will decide the nomination before announcing the final award based on the
revenue generated and its potentiality.
• This award for individual would consist of a certificate signed by the Site GM along
with a cheque of Rs. 10,000/- or a three-day holiday package to any holiday resort,
subject to an expenditure ceiling of Rs. 10,000.
• This award for team would consist of certificates signed by the Site GM along with a
cheque of Rs. 30,000 or a two-day holiday package to any holiday resort, subject to an
expenditure ceiling of Rs. 30,000.
98
13. Promotion and Grading System
13.1 Introduction
For employees, an important aspect of the perception they have towards their job is based on
their opportunity for promotion and career advancement. It is this key aspect which draws
talented people to the organisation and sustains the organisation in which they are less likely
to leave the organisation. Hence, a policy on employee promotion should show how the
organisational views the career growth of its employees. It should contain guidelines on how
to manage the process of moving employees to higher positions.
13.2 Definition
A promotion is often defined as advancement to a position that requires performing

accountabilities of significantly increased complexity or responsibility. “It is the advancement
of an employee from one job position to another job position that has a higher salary range,
higher level, job title, and, often, more and higher level job responsibilities.” (Heathfield,
2012) Visually, a promotion moves an employee’s job up one level on an organisational chart.
A promotion is viewed as desirable by employees because of the impact it has on pay,
99
authority, responsibility, and the ability to influence broader organizational decision making.
A promotion raises the status of the employee who receives a promotion which is a visible
sign of esteem from the employer.
13.3 Importance of promotion
It is important to note that well performing employees expect reward in the form of extra
incentives such as salary hikes, bonuses, promotions and so on. An employee who has been
working with an organization for past many years may also expect promotion on account of
his/her loyalty towards the organization. Therefore, it is important to ensure that efficient and
well deserving employees are promoted on a timely basis. Some of the key benefits of
employee promotion to the organisation are as follows,
Employee Retention
Every organization should set predefined parameters on which an individual’s performance

will get evaluated. This evaluation should be used as a basis for recommending employee
promotion. Hence, employee promotion can be used as a measure of retaining employees with
the organization.
Control and Save Costs
An employee already working with an organization will have a better understanding of

business processes and systems. Hence, it will be easier for him/her to learn and implement
new activities in comparison to an employee hired from outside the organization.
Reduces Employee Resistance
Employees may find it difficult to work with and report to an individual who has been hired
from outside the organization. Any employee who has been internally promoted may find less
resistance and negative reaction from his/her subordinates or team members.
Improves Motivation Level
Timely promotion can give a boost to employee motivation which will help in increasing the
level of employee satisfaction. A satisfied employee will always make extra efforts to
increase his/her level of contribution in the achievement of individual as well as
organizational objectives.
100
Improve Company Image
Promotion may give a sense of belongingness to an employee. A loyal and satisfied employee
will always appraise his/her organization. He/She may even recommend others to join the
company which may help the company in attracting more talented employees.
13.4 Data Survey Analysis
Inference: - It has been

inferred that “the employee
policy on promotion
administered through it
defined policy of the
company” is on the lower
margin as the score is
comparatively less. The
average score was at 2.9
out of 5 with a standard
deviation of .90. This is an indication that the promotion is an area that needs special
attention. 27% of the employees feel that policy on promotion is administered through its
defined policy of the company. Not a single respondent have mark against strongly agree.
55% of the employees have taken a neutral stand. And 18% of the employees have disagreed
to this statement.
24% of the employees in Savli have agreed to the statement. 44% of the employees have
taken a neutral stand to this statement. And another 24% have shown a negative response.
28% of the employees in Maneja have shown a positive opinion to the statement, 56% of the
employees have taken a neutral stand and 16% of the employees have shown a negative
response to the statement. However, a deeper analysis of the response of the respondents
indicate that not a single employee have rated as strongly agree. But for the strongly disagree
it is at 9% of the respondents.
There is a clear indication of dissatisfaction among the employees when it comes to

promotion. However, when a deeper analysis was made, it was found that the organisation
have classified the employees into white collar and blue collar. And the grades are as A, B, C,
D and O based on the qualification and experience a person has. Apart from this, it does not
have a standardised grading system based on the competencies of the employees rather it has
101
a flat structure. The works are done as per the requirement of the business without any
distinction of grade and band of the employees. The only difference is the gap between the
management and the employees are demarcated based on the nature of the delegation carried
out by them.
13.5 Recommendation
Bombardier Transportation India Ltd. requires a job grading tool and levelling framework that
should be aligned to a structure. With no consistent framework in place, the organisation
suffers from internal inequities with regards to pay, benefits and career progression. It needs
to understand what jobs exist and how it will position in comparison to each other to create
greater transparency within the business.
Need of Grading System for Promotion
It needs to have a proper grading and banding system for the employees where each person’s
grade is determined by one qualification and experience at the initial phase and by one
expertise at the later stage of one’s employment. For when grading
system is properly done, the pay structure and promotion of the Grade and pay
employee can be determined. Grade and pay structures provide a structures enable
logically designed framework within which an organisation’s pay organisation to
communicate the
policies and promotion can be implemented. They enable the
career and pay
organisation to determine where jobs should be placed in a hierarchy,
opportunities
define pay levels and the scope for pay progression, and provide the available to
basis upon which relativities can be managed, equal pay achieved and employees.
the processes of monitoring and controlling the implementation of pay
practices can take place. (Armstrong, 2012) Grade and pay structures also enable organisation
to communicate the career and pay opportunities available to employees.
Grade Structure
A grade structure consists of a sequence or hierarchy of grades, bands or levels into which
groups of jobs that are broadly comparable in size are placed. There may be a single structure
that contains grades or bands and which is defined by their number and width (width is the
scope the grade or band provides for pay progression). Alternatively the structure may be
divided into a number of job or career families consisting of groups of jobs where the
102
essential nature and purposes of the work are similar but the work is carried out at different
levels.
Pay Structure
A pay structure defines the different levels of pay for jobs or groups of jobs by reference to
their relative internal value as determined by job evaluation, to external relativities as
established by market rate surveys and, sometimes, to negotiated rates for jobs. It provides
scope for pay progression in accordance with performance, competence, contribution or
service.
One of most popular grading system that I would recommend is that of the Global Grading
System which is wholly accepted by most of the popular company in the world. It is also
known as the Towers Watson Grading System. According to this there are maximum of 25
degree (function groups) assigned. This is again classified into two career path (Individual
contributor and managerial career and eight bands. After the highest position as the Managing
Director or CEO of company in terms of the four factors of internationality and complexity of
the company, employee numbers and turnover has been classified, is in the individual
assessment of a position initially taken by the band decision based on a so-called "band-
decision-tree".
103
Figure13.1: Tower Watson’s GGS
Source: Global Grading System available at

http://www.towerswatson.com/assets/pdf/2815/TowersWatson-GGS-CM-Factsheet-NA-
2011-19979.pdf
Individual Contributor
Individual contributors are the employees who are the work force of the organisation and their
main focus is on the job at hand. They are defined by the team role or the contribution they
make in the team. They are responsible to the activities they do. In due time, they become
specialist or expertise to that particular field in which they work. They are most comfortable
establishing an area of expertise and being recognized for their high level of performance.
Management
Management are the people who ensure that things are done through and with the people in
the organisation. They are the people who know what to do, when to do and see that it is done
104
in the best and cheapest way. They direct the group efforts towards the attainment of certain
pre-determined goals.
Redefining Band System of Individual Contributor
Tower Watson’s Grading Recommended Functional Skill

System Designation
Manual Associate Beginner
Administrative Analyst Learner
Professional Specialist Practitioner
Subject Matter Expert Subject Matter Expert Coach
Figure 13.2: Graph for Band and Designation
Compiled in line with Functional Skills of Bombardier Transportation India Ltd
This is to ensure that the band system of the individual contributor is properly defined with a
proper designation. This is also to relate its applicability to the functional skill of Bombardier
Transportation India Ltd. where the roles and responsibility are clearly specified. So the band
and designation in relation to that of Tower Watsons Grading System would be like,
Roles and Responsibilities
Associates
105
• Associates are those employees who have joined the organisation newly with little or
no prior relevant work experience.
• Acquires basic skills to perform routine tasks.
• Works within a clearly defined standard operating procedures and or scientific

methods and adhere to strict quality guidelines.
• Work with either close supervision or under clearly defined procedures
Analysts
• They are those employees who have developed knowledge and skills through formal
training or considerable work experience.
• This is also the entry level often for those with work experience in the skill area.
• Do the works within established procedures with a moderate degree of supervision.
• Apply experience and skills to complete assigned work within own area of expertise.
• Identifies the problem and all relevant issues in straightforward situations. Assesses
each using standard procedures and makes sound decisions
Specialists
• They have developed specialised skills or are multi-skilled through job-related training
and considerable on-the-job experience.
• Works within defined processes and procedures or methodologies and may help
determine the appropriate approach for new assignments.
• Do work with a limited degree of supervision
• Take a broad perspective to problems and spot new, less obvious solutions.
• Acts as an informal resource for colleagues with less experience.
Subject Matter Expert
• Employees who have advanced and specialized expertise typically developed through
a combination of job-related training and considerable on-the-job experience.
106
• They complete assignments and facilitates the work activities of others; may
coordinate work beyond own area
• Acts as a lead, coordinating the work of others.
• Works autonomously within established procedures and practices.
• Generates new and innovative solutions to complex problems.
Management
Supervisor
• Coordinates and supervises the daily activities of business or technical support or

production team.
• Sets priorities for the team to ensure task completion; coordinates work activities with
others supervisors.
• Decisions are guided by policies, procedures and business plan; receives guidance and
oversight from manager
• Typically does not spend more than 20% of time performing the work supervised.
Manager
• Manager professional employees and/or supervisors or supervises large, complex

technical or business support or production operations team
• Is accountable for the performance and results of a team within own discipline or
function
• Adapts departmental plans and priorities to address resource and operational

challenges
• Decisions are guided by policies, procedures and business plan; receives guidance
from senior manager
Senior Manager
• Provides leadership to managers, supervisors and SME employees
107
• Is accountable for the performance and results of multiple related units
• Develops departmental plans including business, production and/or organisational

priorities
• Controls resources and policy formation in area of responsibility
• Decisions are guided by resource availability and functional objectives
Group Manager
• Provides leadership and direction through senior managers and managers
• Adapts and executes functional or departmental business plans and contributes to the
development of functional or departmental strategies
• Decisions are guided by functional strategies and priorities
• Ensure that the business is in line with the mission and goals of the organisation.
Conclusion
Therefore, for promotion to be possible there has to be a clear grade and band system. For
effective creation of promotion policy based on the tenure or the competencies of the
employees, grade and band system are the pre-condition for its implementation. It is when
band systems are there in place the employees can accept the ownership of their career
development plan and work with their leader to achieve the career development goals such
that career growth is possible. It is only when grade and band are specified and a positive
outlook for promotion and career development are created, can an employer approach an
employee with feedback about the skills necessary to qualify for a promotion. Grading and
banding system of employees are the key requirements for managers to develop a path for
employees towards a promotion.
14 . Separation Policy
108
Objective
The key purpose of Separation Policy is to ensure smooth exit or departure of the employees
from the organization.
Scope
All Employees of Bombardier Transportation India Ltd
Responsibility
• The acceptance of the resignation will solely lie in the hands of the Immediate
Manager or the Departmental Head. This resignation shall be escalated by the
immediate manager to the HR Team.
• The Director HR or the HR BP shall have the Final Discussion with the resigned
employee. However, for the Exit Interview it shall be HR BP who will take the
interview to get the valuable feedback from the resigned employee.
• Other tasks and paper work of final settlement – Respective HR In-Charge.
Types of Separation
An Employee shall be separated from his or her services with the company due to the
followings reasons,
• Resignation
• Termination
• Superannuation/Retirement
• Death
Resignation
Resignation is official notice when the relationship of employment comes to an end out of
free-will/pleasure.
Policy Clause
• An employee who wishes to resign from the services of the Company will be required
to give the notice of resignation as per the terms of his or her appointment or
subsequent amendments thereof.
• Pro-rata benefits and perquisites will also be available to all employees on separation.
109
• When the resignation has been accepted by Department / Functional Head, but
requires final discussions with the Resigned Employee, Director HR / HR BP shall
undertake the Final Talks.
• With a view to pick up feedback from the employee who has submitted his
resignation, the HR BP shall conduct an Exit Interview.
• Resignation Acceptance Letter shall indicate the date of relieving and advising him or
her to return and handover the company properties or document(s) if any.
• Full & final settlement is subject to submission of NO DUES CERTIFICATE duly
signed by respective HOD.
Termination
Termination is when an employment comes to an end on ground of misconduct.
Policy Clause
• Termination of services of employee shall be made on the grounds of long
absenteeism and/or any intense disciplinary action(s).
• In case of termination due to any disciplinary action, the concerned employee is
relieved on the very same day. All the following processes shall be undertaken on the
same day or a day to two.
o Full & Final Settlement dues cleared
o Full & Final Settlement cheque handed over
o All Legal dues paid without making any Notice period recovery
• In case of absenteeism notice shall be issued by the Director HR / HR BP and sent

through registered Post (Courier) on 15th Day of absenteeism
• On account of Employee not reporting to duties even on the 20th day, appropriate
disciplinary action, according to the applicable standing order applicable in the
organization, shall be taken.
Exit Interview
An exit interview is an interview conducted by an employer of a departing employee.
Policy Clause
• The Employee who has submitted the resignation shall attend the Exit Interview to
share his or her opinions and views on the company’s policies, procedures, systems
and practices for improvement in these areas.
• Exit Interview shall be conducted before processing Full & Final Settlement.
110
• In case of Separation owing to Termination NO Exit Interview is conducted.
Superannuation
The age of retirement (superannuation) of the employees shall be 58 years of age.
Separation due to Death
Policy Clause
• Cheque of dues and others shall be paid to the declared nominee of the employees.
Full and Final Settlement Policy
Policy Clause
• For processing Full & Final Settlement, the following aspects shall be checked and
calculated,
o Accumulated Leave as on date for calculating Leave Encashment
o Years of Service more than FIVE YEARS for Gratuity Amount
(4 years and 11 months)
o Information in No Dues Clearance Form for any Loan Recovery or Salary
Payable
• For an employee whose No Dues Clearance (loan) is not cleared due to various
reasons, Full & Final Settlement will be kept pending. After clearing all the dues, his
or her Full & Final Settlement is processed.
• In case, an Employee wants to be relieved early before completion of his or her

specified Notice Period, Notice-pay shall be recovered from him/her. All legal dues as
per the normal resignation are given to the Employee.
Gratuity
Policy Clause
• As per the gratuity act an employee who completes 5 years or more continuous service
or either resigns or retires or services terminated or dismissed or discharged are liable
to be paid gratuity at the rate of 15 days Basic salary for each completed year of
service to a maximum of Rs. 3,50,000.00 or 20 months’ salary whichever is less.
111
• For the purpose of gratuity one month consists of 26 days. The payment towards
Gratuity is payable to all the employees.
• Forfeiture of Gratuity can be done. It shall be as per the Payment of Gratuity Act,
1972.
Provident Fund
Policy Clause
• All employees are covered under the Employees Provident Fund & Provisions Act,
1952 and shall contribute 12% of Basic Pay per month or as fixed under the said Act
from time to time. The company shall make a matching contribution. Contributions to
the fund commence with effect from the date of joining of the employee.
• As per the said Act, an employee can make voluntary contributions to the Fund.
However, the company will not be liable to match any contribution made by the
employee over the entitled amount.
• As per the provisions of the EPF & MP Act, 1952, employees may apply for a loan
against their accumulated Provident Fund balance for the following purposes:
o Housing
o Illness
o Marriage
o Education
o Natural Calamities
• For transferring and/or withdrawing the PF Amount, an employee has the option of
filling up the respective forms available with the HR Team and submitting the same to
the HR in-charge.
112
Annexures
Questionnaire
Personal Information
Name (Optional)…………………………… Age………………………….
Designation…………………………… Sex………………………..…
Department …………………………......... Site: …………………………
(Topic: - Harmonization of Human Resource Policies at BT India)

1. For how many years have you being working with Bombardier Transportation India?
a. 0 -1 yr. b. 1 – 2 yr.
c. 2 – 5 yr. d. > 5 yr.
2. Are you satisfied with the present HR policies of the company?
a. Yes b. No c. No Opinion
3. Do you feel the need of having structured HR policies?
4. Standardization of HR policies will ensure better operational effectiveness.
5. How do you rate the channel/process of communication in your organisation?
(1) Excellent (2) Very good (3) Typical (4) Fair (5) Poor
6. All things considered, how do you rate your long term career potential with
Company?
7. How do you rate the safety and health standard of the company?
8. How do you rate company on treating employee problems fairly?
10. What according to you are the main reasons for Harmonization of HR Policies? (YOU MAY
TICK MORE THAN ONE CHOICE)
a. Enforceability of the system
b. Unification of the system
c. Simplification of the procedure
113
d. Standardisation of the system.
CIRCLE THE MOST APPROPRIATE NUMBER BASE ON THE RANGE OF SCALE AS THE BELOW CRITERIA
Strongly Agree (SA) Agree Neither Agree Nor Disagree Strongly Disagree
(A) Disagree (NAND) (DA) (SD)
5 4 3 2 1
STATEMENTS SA A NAND DA SD
I am proud to work for my company. 5 4 3 2 1
Bombardier Transportation India Ltd. is concerned with the 5 4 3 2 1

long term welfare of the employees.
The company has a well-defined and well-structured process 5 4 3 2 1

of recruitment.
The company have a clear development or training 5 4 3 2 1

plan/strategy for all employees
The company has a policy that attracts talents and retains best 5 4 3 2 1
employees across all sites.
Recognition & Rewards for the effort put in by you to do 5 4 3 2 1

your work will give you a WOW feeling to do your work
better.
The company have transportation policies that are even for all 5 4 3 2 1
employees.
The company offers compensation plans that provide a stable 5 4 3 2 1

base with variables linked to performance.
The company has a define leave policy through its defined 5 4 3 2 1

policy.
The company encourage employees to play a proactive role in 5 4 3 2 1

improving the employee-management relationship.
Suggestion policies to enhance feedback from the employees 5 4 3 2 1

can bring about innovative ideas to the company at large.
Personal Job Evaluation is done by your immediate manager 5 4 3 2 1

from time to time.
My immediate superior deals with all employees fairly based 5 4 3 2 1

on the policy of the company.
114
Employee policy on promotion is administered through its 5 4 3 2 1

defined policies of the company.
115
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118

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2012

Bombardier Transportation India Ltd.

Under the Guidance of

List of Figure and List of Table 2

Literature Survey and Theoretical Background 23

Data Analysis and Interpretation 35

Findings and Recommendations on Policies 47

Recruitment and Policy Recommendation 48

Training & Development and Policy Recommendation 60

Leave & Holidays and Policy Recommendation 69

Retention and Retention Bonus Policy Recommendation 87

Reward & Recognition and Policy Recommendation 92

Promotion and Grading System Recommendation 99

Separation, Full and Final Settlement Policy Recommendation 108

Figure 3.2: Health, Safety and Environment Policy 21

Figure 9.1: Stages of Training and Development 61

Figure 9.2: Criteria for measuring training success 68

Figure 12.1: 50/30/20 Rule 92

Figure 13.1: Tower Watson’s Global Grading System Map 103

Figure 13.2: Graph for Band and Designation 104

Various Graphs of the questionnaire

Table 8.1: Panel Members for interview 55

Table 10.1 Comparison of the leave policies at various sites 77

Table 10.2 Comparison of the list of holidays of various sites 78

1.1 Harmonisation of HR Policies

There is a growing need of harmonization to expand HR policies and practices across

HR policies provide guidelines on how key aspects of people management should be

HR transformation is focused on making HR operations more efficient and effective

Where are we today?

What do we want to be tomorrow?

What is the gap between today and tomorrow?

The objective of this project is to do the following:

The profiles of these major companies are given below.

Infrastructure and Cities

Various products offered in this category include,

1. Automation for Mainline and for Metro Projects,

3. Audio Frequency Track Vacancy Detection,

6. Auxiliary Warning System,

2.4 BEML Limited

3. Bombardier Company Profile

3.1 Historical Background

Bombardier is a global transportation company with 76 production and engineering sites in 25

Today Bombardier operates in two industry-leading businesses:

3.2 Bombardier Aerospace

• Business aircraft - Learjet, Challenger and Global aircraft families

3.3 Bombardier Transportation

3.4 Bombardier Transportation India Ltd

Bombardier Transportation India Ltd is a subsidiary of Bombardier Transportation, a global

3.5 Strategic Intent

Our mission is to be the world's leading manufacturer of planes and trains.

Our standards are high. We define excellence—and we deliver.

Bombardier Core Values

The Core Values are:

As an organisation it promotes a customer-centred culture that emphasizes outstanding service

The organisation focuses on creating sustainable shareholder value through developing

3.6 Quality Policy

It considers quality to be an important measure of business excellence and of our success.