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Chapter Four Human Resource Practices in selected industrial units.

I CHAPTER 4 HUMAN RESOURCE PRACTICES IN SELECTED INDUSTRIAL UNITS

4.1 Cummins India Ltd. (Company One) 4.1.1 Profile Cummins India Ltd. (formerly known as Kirloskar Cummins Ltd.) commenced operations in India at Pune in 1962. The manufacture of heavy duty Cummins Diesel Engines was started in India at a time when market requirement in the country was being met entirely through imports. Since then Cummins India Limited has pioneered in advancing the diesel engine technology and meeting the diverse power requirement of the country's core sectors. Vision : "Making people's lives better by unleashing the power of cummins." Manufacturing : Cummins India Limited manufacturing facilities are based at Pune Plant-I, spread over 93.2 acres, is a complete integrated engine manufacturing plant. All major engine components like cyllinder blocks, cyllinder heads, cranckshafts, camshafts, connecting rods, gears etc. are produced in house. All fuel system components are also produced in house. State of the art machines like CNC flexible matching centres are available. Comprehensive heat treatment facility with computerised online monitoring systems engines and components are assembled in a dust free, positive pressure and temperature controlled environment. Plant-II has a pattern shop and a captive foundry for special CI castings. Cummins Tech. Center : The R&D Tech. Center at Cummins India Limited is committed to develop world class products for customers. (43) This state of the art Tech. Center is equipped with 14 computerised engine test cells fatigue testing facitility, structured analysis facility, electronic/instrumentation laboratory and computerised exhaust gas analyser. Cummins Tech. Center is recognised by Deptt. of Science and Technology (Govt, of India). Total Investment of over Rs.l70 million.

4.1.2 Milestones : 2004 - Cummin Inc. Chairman's Award for Six Sigma Black Belt project. QCFl National Award for Productivity. National Award for Energy Conservation. QUIMPRO silver standard for quality system. Global Initiative - CRTI established. 2003 - Diversification of Exports productwise and to S-E Asia, China, US, Africa and Middle East. 2002 - Kaizen launch. CASE launched. Cummins India Foundation unveils Pune's "first school on wheels". 2001 - Helen Keller Award for 2001 for Social Responsibility from Nation Center for Promotion of Employment for Disabled People. 2000 - CDSS wins Rajiv Gandhi National Quality Award for Service Excellence. 1998 - Introduction of Quantum Service Engines. 1997 - Production crosses 10000 engines per year. ISO 9001 certification revalidated. Kirloskar Cummins Ltd. becomes Cummins India Ltd. 1996 - Aluminium Foundry started at Pune. 1995 - Annual Exports cross Rs. 100 crores. 1994 - ISO 9001 Recertification. EEPC Top Exporter Award for the 5th consecutive year. 1993 - Rajiv Gandhi National Quality Award "Best Among the Winners" - 1991-92. 1991 - ISO 9001 certification from BVQI-UK/Holland. (44) 1989- EEPC Top Exporter Award I Diesel Engines and Spares Category. 1987 - Becomes the single global source for Cummins V 28 Engines. 1986 - 50,000th engine manufactured. 1983 - Development Foundry I, Plant II started functioning. 1980 - Engine plant approved for self certification by Lloyd's certification of Shipping. 1979- Introduction of K engines. 1975 - 10000th engine despatched at the hands of Mr.J.I.Miller, Chairman of the Board, Cummins. 1972- Introduction of V engines. 1968 - 1000th engine shipped. First 15 engines exported to Egypt. 1967 - Cummins acquires CDSS. 1964 - First 11 engines produced for Industrial/Mining applications. 1962 - Incorporated in Pune, India.

4.1.3 Human Resource Practices (initiatives) launched by Cummins India Ltd. : Cummins India Ltd. is known for various innovative human resource practices launched in past many years that had collective effect on the productivity and business performance. All these practices contributed to competencies, commitment and good work culture in the organisation. It also maintained harmonious and cordial relations with the employees in company. Important initiatives launched by the company and the improvements made in it over a period of last five years i.e. from 2000 to 2004 are discussed here for the purpose of the study. Considering the vast scope of the study the minute details of the scheme, procedural aspects and documents incorporated for implementation are not covered. The basic approach, attitude and policy of Management while launching the scheme are considered important.

1. Organisational Redesigning and Restructuring : During the year 2001 and 2002 the organisation focused its HR/ OE (organisational effectiveness) efforts to become a customer centric (45) and a high performance organisation. The business was organised into performance cells and business units with score cards and performance metrics for all performance cells. Integration and alignment of resources tobe close to external customer and getting organised along processes was the most critical agenda for the organisation. The company simplified the structure to provide greater focus on specific operations. It was organised in to eight manufacturing business units and three broad business performance cells, supported by common functions like Finance, HR, IT and Maintenance. This structure helped to improve productivity, speed of operations and decision making. As business diversity demanded the talents and creativity of individuals with a wide range of backgrounds, company strives to unleash the power of Cummins by giving an employee the freedom to take charge, the opportunities to grow and the benefits to build his future. The Chairman and Joint Managing Director Mr.Anant Talaulikar mentions in the annual report 2004 of the company- "Cummins India continued its journey of progress with a sense of purpose and direction. Our road to sustainable and profitable growth for our shareholders is guided by our vision of "Making peoples lives better by unleashing the Power of Cummins." For all of us at Cummins this vision statement is our anchor. The vision statement is elucidated further by our mission. These two keep us rooted to our core values which we follow like a "mantra" in our day to day dealing with all shareholders."

2. Performance Management: During the year 2001 company rolled out a new performance management system (PMS). The objective was to link in better manner the individual performance to organisational goals and help to provide appropriate career options/roles for various members in the organisation. This helped company to manage resources and performance better. The data available from the process also helped to objectively evaluate and implement several key related decisions and also provide input for other important initiatives like capacity building, organisational redesign, job rotations and job enrichments. On the basis of experience the PerfoiTnance (46) Management System was further strengthened through the involvement of managers at all levels. The leadership team supported the process more rigourasly. This helped people gain more confidence in the system. Now the system is established and has found its feet. Its execution has reached a high degree of maturity. Managers have become well versed and are using its functionality well for mananging performance. The important features of the PMS are- (1) Preparation of Quarterly Work Plans. (2) Regular review and feedback that strengthens the performance ethic. (3) Company believes in well defined set of core values. They are the ground rules of leadership behaviour for the employees. Demonstration of these values form a very important part of the Performance Management System. (4) Company believes in attracting and retaining people who believe in these Core values and consistently demonstrate them in their professional and in personal lives as well. The Performance Management System not only measures the achievement of targets but also the employee commitment to core values of Cummins in achieving them.

Core values of Cummins with solid and longstanding foundation. 1. Integirty 2. Innovation 3. Delivering Superior Results 4. Corporate Responsibility 5. Diversity 6. Global Involvement "We have a great, skilled and diverse employee base and a leadership team that is moving the organisation from a "best efforts' environment to the one that is results and performance oriented. We have embraced a company personality that aspries to be decisive, driven to win, agile, passionate and caring. We therefore look for and reward these attributes in each one of our employees. We accomplish our vision and mission based on a solid longstanding foundation of stated core values which are (47) Integrity, Innovation, Delivering Superior results, Corporate Responsibility, Diversity and Global Involvement." - Chairman, Cummins India Limited (A.R. 2004) 3. Remuneration Philosophy : In order to create high performance organisation company designed its remuneration policy that encourages pay for performance and drives distinction between various levels of performance. For achieving this objective of high performance Market Led Compensation Philosophy was adopted. In order to attract and retain the best talent company benchmarked it's compensation with a basket of companies in the Engineering and Service sectors. This policy enabled company to make more market based revision of compensation for managers. It was continued to focus on differentiating levels of compensation for highest performers. Through this policy company ensured that talent within the company are paid closer to the market. The basic features of compensation philosophy can be briefed as follows :- (1) The compensation paid is comparable to market trends. (2) compensation is benchmarked with companies in the industry. It Q naturally attracts and retain the talent in company. (3) The compensation is linked with the performance of employees and encourages for higher performance.

4. Induction of Fresh Talent: Scientifically designed process for Manpower planning involves predicting future manpower requirements and induction of fresh talent through selection process are main HR initiatives. In order to create talent pool and build a pipeline for future leadership roles the company picked up 15 business graduates from premier business schools in India and overseas, during 2002. In view of the policy of building more modern product platforms and need felt by the company to induct more modem and qualified technical expertise, high quality skills from the country and abroad were attracted. The company has also established the platform for colaborations with premier institutions in the country liek IIT, Mumbai to develop knowledge transfer as well as fundamental research.

(48) 5. Leadership Development and Capability Buidling : Cummins has always accorded high priority to employee training and capability building. Training is imparted across all leves of employees. Company's capability building calendar is based on individual development plan and organisational requirements for business growth. Leadership Development Programme launched in the year 2001-02 for the top 120 high potential leaders proved a successful intiative. "Front line leadership programme" was also focused for the high potential managers at entry and middle management levels. The coverage of the programmes was expanded by focusing on providing inputs on key business skills and knowledge like finance, negotiation, consulting, selling and materials management. Functional training for enchancing key business skills to identified set of employees was continued. During 2004 Cummins leadership development programme, a global initiative to improve company performance through improved leadership was launched in India. Company also launched "operations management programme" for graduate trainee engineers. The programme had highly structured approach towards development of young and talented engineers in to matured, contributing and competent managers. It was designed to combine theoratcial excellence with practical on the job knowledge. Apart from the assignments in different areas of operations they have to work on one six sigma project as key area in the training programme. Company has great aspirations, creative strategies and ambitious plans. Improving the capability and capacity to execute these plans is a major focus of the managment which covers three areas where it feels that progress is required. (1) Improved foucs on customer issues. (2) Improving the capability of the people and (3) Improving the capability of processes. While improving the capability of people focus is on following issues - (1) Generating passion. (2) Converting jobs in to mission for more and more people. (3) Enhancing jobs skills. (49) (4) Knowledge and Leadership abilities of employees and employees of channel partners. (5) Getting people to collaborate and work in teams. (6) Harnessing diversity productively. (7) Retaining the best talent in company. (8) Growing leaders and their successors.

6. Employee Recognition Programme : Recognition and Appreciation of the contribution of employees in improving the performance and productivity of the company is a successful and significant HR practise launched by the company. In early 2002 the employee satisfaction survey revealed that "employee recognition" is one of major concerns and company launched a recognition programme called "chairmans awards". This is a semi annual event where employees are given chairman's recognition for excellence in various categories of performance. Such recognition for the excellent contribution of employees at the hands of the chairman in a function is the best way to appreciate their efforts to improve quality, cut costs, improve processes and focus on customer quality. In the function for the year 2003, a total of 136 employees were recognised for their contribution in different areas of the organisation through this prestigious award. Matangi Gourishankar, Vice President, Human Resources and Organisational effectiveness was felicitated as the "Indira Women Super Achievers - 2003 by Indira Group of Institutes.

7. Sports and Cultural Initiatives : Play and work go hand in hand. Company is conscious about the health of employees and their family members. Therefore to encourage good health, Cummins organises various sports activities and has always been a very active participant in it. This includes Intra Cummins Sports Competitions for Carom, Chess, Badminton and Sinhagad Climbing. In 2002 company bagged winners Trophy on Group events in the Industrial Badminton Competition organised by Industrial Sports Association and the team was the Runners up in the Industrial Sunday (50) League Cricket Tournament held for the year 2000-01 organised by the Maharashtra Cricket Association. Special highlight for the year 2003 was the "Cummins Cup Cricket Tournament" that took place in three Sundays. More than 500 associates were involved in the tournament to make it a Grand Success. Company also sponcered Industrial Sports Association's Volleyball Tournament. The employees of the company also excelled in some of the sports and cultural events organised by various associations. They outperformed and won prizes in the following events- • First prize in men's double event in the Tennis tournament organised by Pune District Inter Office Sports Association. • National Yoga championship award in National Yoga Competition organised by Indian Yoga Federation. • Runner up Trophy both in open single and veteran single league in the Industrial Badminton Competition organised by Industrial Sports Association. The motto of Cummins Arts Circle is to give happiness and be a part of others happiness. An annual get together is organised for all those who contribute and participate in the activities of Art Circle. "Cummins Arts Circle" provides a good platform to the artists in the company in performing their Arts and skills. It is very active for the last 29 years and arrange several cultural activities for employees and their families. Art Circle team won several state level prizes in various competitions. A summer camp 'Tamhini' was organised for children with the help of a local society. A workshop and a quiz competition with "Water" as its theme was organised for school students. To develop environmental awareness among children the Nature club which has a presence in fifteen schools with more than 2000 members, conducted several activities with Water as its theme. Several nature trails along the local river ecosystem were conducted. Stuents actively participated in an initiative called 'Nirmalya' to curb the river pollution due to immersion of clay statues during popular Ganesh festival. (51) Other activities and competitions organised by the employees- (1) National Safety Week celebrations. Every year National Safety week is celebrated from 4th March to 11th March. A training programme on Firefighting, A kirtan on Environment by Mr.Pradeep Agashe, A training programme on "Save energy" by Kiran Paranjape, Display of Safety posters and Safety tools, and the Safety function at learning centre were the highlights of the Safety Week celebrations. Safety quiz competition, Housekeeping Competition and O Tag Competitions were also organised during the week. Prizes were awarded to the winners. (2) Cummins "Bhajan Mandali' performs regularly at various events and has also won many prizes in individual and team category. It bagged the second prize in competition organised by Kamgar Kalyan Mandal. (3) Various departments in company celebrate Ganesh festival with joy, vigour and enthusiasm. Employees show their artistic talent and skills in decoration and other arrangements during festival. (4) Cummins Employees Union participate in "Ashadhi Palkhi Sohala" and welcome warakaris by distributing sweets to them and compliment for onward procession to Shri.Vitthal Darshan at Pandharpur. (5) Workshops on Health Awareness, Vysan Mukti orientation programme in collaboration with "Muktangan' Kendra, Snehseva Camp for the leaders of Sunrise meetings held at Khanapur, workshop on prevention of Osteoporosis organised by Dr.Saraf. Women's day celebration on 8th March 2004, were other activities conducted. (6) Cummins Art Circle also participate in Annual Drama Competition organised by Kamgar Kalyan Mandal.

8. Corporate Social Responsibility and Corporate Citizenship : At Cummins Corporate Scoal Responsibility and profitable growth co-exist. Company strives to be a trusted Coporate citizen and sincerely try to fulfill its responsibility to the society and community in whcih it (52) operates. This is one of the core values from the vision and mission of the company. (1) The company won the Helen Keller Award-2001 by the National Center for Promotion of Employment for Disabled People (NCPEDP) New Delhi, on account of providing an employment opportunity to 18 physically challenged people. The NCPEDP Helen Keller Awards are given to individuals and various organisations for their laudable contributions in promoting employment opportunities for the disabled people. (2) In consistent endeavour to help the social cause company extended support to Anandvan (Leprosy Rehabilitation Camp) and the Pune Blind School by donating uniforms and other articles requried in daily life. (3) Cummins extended monetory support to procure Laboratory equipments and other study material to a small school in a village adjoining Pune city, which got permission to start the classes for standards IX and X. (4) For Environment protection the programmes like tree plantation, vermiculture projects, nature trails are undertaken by Company. (5) Hingane Stree Shikshan Sanstha is very old and reputed institution supporting poor girl children to earn their livehood by imparting skills and knowledge. Company provided surplus dining tables and Brailee books to the school. Company also generously donated to the engineering college for women run by the same institution named as "Cummins College of Engineering for Women". (6) The Cummins group founded "Cummins India Foundation' in the year 1990. It is a philanthropic wing of cummins group of companies in India. Its vision statement "Making people's lives better by unleashing the power of Cummins" encapsulates the commitment of Cummins group towards social responsibility. The three areas that CIF focusses on are Eduction, Energy and Environment. Cummins India Foundation has been a catalyst for making positive changes in responsible citizenship. Every year Company set side up to 1% of after tax profits for the Foundation. (53) The CIF launched "School-on-wheels' programme about three years back which is a unique project imparting basic and informal education to the children of migrant workers. School on wheels is a programme for out of school children who do not have access or an opportunity to participate in regular formal schooling. The beneficiery children come from places where no space is available for holding classes e.g. labour camps and roadsides. Classes are held for groups of children at regular hours per day, five days a week. A visit of regular fifteen selected children of the school was organised to British Library on the occasion of World Book Day on 23rd April 2004. (7) Cummins India Foundation also donated computers and related furniture to establish training centres in rural schools around city and facilitated drinking water at villages. Cummins also donated Gensets to hospitals. (8) At individual level also there are examples like Shri.Anil Mandrupkar working at CDSS who is involved in many social activities and contribute for its betterment. He was the project team leader for "Village upliftment project" under responsible citizenship programme. The project was launched at Jambhulwadi near Katraj. He worked on varied activities hke Free Medical Camps, Tree Plantation, PMT Bus Service etc. One significant activity was "coroneal transplant' perfonned on 10 year old village girl who was bom blind. He also participated in "Pulse Polio' programme along with others. For such social work he never compromised with professional commitment. He secured chairmans award in Feb. 2001. He is the first Six Sigma green blet for completing Fleetguard Non Cummins filteration growth project in 2004. Cummins is proud of Anils commitment as a good example of the typeof corporate citizenship that Cummins espouses. (9) Entrepreneurship Development and Rehabilitation Centre for the handicapped (EDARCH) is instituted that promotes entrepreneurship among physically and mentally challenged youth.

9. Family Development Circles : As a responsible corporate citizen, social responsibility is one of the core values of company. Family development circle initiated in 1991 (54) is the key initiative towards improving the life style of all employees and their families. It keeps women members engaged in improving their skills through various workshops, training sessions and lectures. At present more than 1000 women members are part of Cummins Family Development Circle. They are taught making of crafts and gift articles, making of aurvedic medicines, plastic moulding, accounts writing etc. Computer training to spouces of employees was a special initiative in the programme.

10. Local Diversity Councils : India's ancient culture represents its physical, religious and racial variety and is as immense as its linguistic diversity. Modem India presents a picture of Unity in Diversity to which history provides no parallel. One of the core values of Cummins is to create and respect a diverse workplace. It strives to build an environment that seeks, harnesses and uses employees' different backgrounds and experiences to build organisational strength. Company has a Diversity Council that celebrates festivals and functions of different parts of the country. Festivals pertaining to various religions have been celebrated such as Dnyaneshwar & Tukaram Palkhi, Gudhi Padwa (Hindu New Year), Durgapuja, Dandiya, Diwali, Ramzan, Christmas etc. International womens' day was also celebrated with great enthusiasm. Its initiatives are designed to bring together the employees by creating awareness and respect for diversity in faith, religion, belief and sex.

11. Health Awareness Programme : Cummins Health Service believes that "Prevention is better than Cure". To fulfill this motto Health services carried out different Health Awareness Programmes. A lecture series was organised for all employees on topics like Heart related Disease, Addiction related to cancer. Hand injuries and plastic surgery, Art of living. Diabetics detection camp for employees etc. In addition to these initiatives "Global Anti Drugs Day" was observed with an intention to create awareness among the employees. A Poem, Poster and Slogan competition was organised for employees (55) and their families. Tremendous response to this event shows awareness and enthusiasm for this noble and vital theme.

12. Corporate Communciation : To ensure effictive communication across all levels and audience segments various new platforms were introduced. News letters. Audio video News magazines among others are the initiatives taken along with establishing various key communication processes for the organisation.

(1) Pratima - House magazine of Cummins. Every month house magazine - a Newsletter of Cummins is published and circulated amongst the employees. It is rightly described as "Bringing Cummins to your home' (Cummins Apalya Ghari). This initiative has been very effective way for communicating with the employees. It has very good features of a newsletter reaching to the hearts of poeple. This is the tenth year of the Periodical. "Pratima' has won consolation prize in the House journal competition organised by Maharashtra Kamgar Kalyan Mandal in 1998. The information covered in house magazine includes following - 1. Organisational announcements and New appointments. 2. Departmental Information - News - Aantarang. 3. Special achievements of Business Units. 4. Successful Kaizen and Six Sigma Projects. 5. Achievements and Awards won by the employees. 6. Honors, Awards and Achievement stories of Cummins. 7. Articles on important issues by experts. 8. Reports on functions, sports and cultural activities with photography. 9. Leading Lights of Cummins - Achievements of outstanding employees. 10. Health Counselling. 11. Sugar and Spice - Light news. Special issues on account of Diwali festival and important occasions are alos released. Shri.Chandrakant Bhave, Hemant Pandit and Sharad Kavi are the Chief Editors for the periodical.

(56) The house magazine has proved very useful in following way :- (1) Informative reports about working and progress of company. (2) Appreciation and recognition of employees contributions and achievements - Motivation. (3) Encouragement to employees to write reports, articles, news etc. (4) Employee counselling on health, work culture, cost reduction, personality development etc. (5) Involvement of family members by publishing happy events, awards, honors and achievements. (6) Exposure to the talent in company in various fields. (7) Improving the "Morale' of employees in company. (8) Creating family culture in the organisation.

13. Industrial Relations : The HR philosophy and Positive approach of Management have resulted in Harmonious and Cordial Industrial Relations. Union actively participates in various improvement practices like Six Sigma, kaizen and Tuabo kaizen. The communication process between Management and Union is on continuous basis. A sizable improvement in productivity and reduction in wastes are visible on the shopfloor operations.

(57) 4.2 Thermax Ltd. (Company Two) Thermax Ltd. a leading player in Energy and Environment Management, is one of the few companies in the world that offers total integrated innovative solutions in the areas of Heating, CooUng, Power, Water and Waste management, Air pollution control and Chemicals. The sustainable solutions, Thermax develops for client companies, are environment friendly and enable efficient development of valuable resources.

4.2.1 Profile of Company : Thermax Ltd. popularly known as "Three M of India" a leading and reputed business group in Energy and Environment sector is recognised for excellent team spirit and ethical values, the Ex-chairperson of Thermax Ltd. Anu Aga is wellknown personality for very human, kind and symathetic approach towards the people. Entrepreneur and Industrialist Shri.Ardeshir Bhathena, father of Smt.Anu Aga established the company named as "Wanson (India) Pvt. Ltd." in Mumbai in 1966. Company was started with a capital of Rs.3 lakhs and forty employees. Initially it was manufacturing coil type packaged boilers and Thermic fluid heaters in technical collaboration with Wanson Comapny from Beljium. Due to expansion of its activities and inadequate space it was shifted to Chinchwad, an industrial subarban in Pune. Today Thermax is a multidivisional company. It has six Subsidiaries and four Joint companies. The major activities carried out by the company include- (1) Design, Manufacturing and Marketing of Boilers, Heaters, Waste heat systems, Vapour absorption machines. (2) Boiler Revamp, Energy services, Waste Management, Air gases. (3) Pollution control. Water and Waste water treatment. Water Management and Recycling. Thermax Ltd., highly technical and a complex Engineering business was developed by three persons having no background of formal Engineering education. Those three persons are father of Smt.Anu Aga

(58) (Mr.Bhathena), husband Shri.Rohinton Aga and Shri.Abhay Nalavade. The Architect of the spectacular growth of this company was Shri.Rohinton Aga. Shri.Rohinton was working with Burma Shell- an multinational oil company- after refuming from Cambridge with Masters degree in Economics. Rejoined Wanson- a newly established company on request of Shri.Bhathena. Rohinton was an outstanding leader with strong innovative entrepreneurial motives and risk taking abilities. He directed, developed and progressed the company to the present status of efficiency and professional excellence. He was the of company. Unfortunately Mr.Rohinton suddenly died in 1996. Smt.Anu Aga was appointed as the chairperson of the Company.

Vision : "To be a globally respected High performance organisation offering sustainable solutions in Energy and Environment."

4.2.2 Thermax Ltd. - Divisions : Energy related Divisions - 1. Process Heat Division 2. Energy Systems Division 3. Absorption Cooling Division 4. Cogen Division.

Environement related divisions - 5. Water and Waste solutions 6. Environment Division 7. Chemical Division

Thermax Ltd. - Subsidiary Companies : 1. Thermax Babcock and Wilcox Ltd. 2. Thermax Energy Performance Services Ltd. 3. Thermax Surface Coatings Ltd.

(59) 4. Thermax Capital Ltd. 5. Thermax Electronics Ltd. 6. Thermax Engineering Construction Co. Ltd. 7. Themiax Instrumentation Ltd. 8. Thermax Co-gen Ltd. 9. Winmax Gas Ltd. 10. Thermax International Ltd., Mauritus 11. Thermax (Rus.) Ltd., Russia 12. Thermax Europe Ltd., U.K. 13. M.S. Engineering Ltd., U.K. 14. Thermax Inc., U.S.A. 15. Thermax do Brasil Energiae Ltd., Brazil 16. Thermax Hongkong Ltd., Hongkong

4.2.3 Research and Development: When started, Company had no specific, established product, talented people and financial strength. Attracting best talent and retaining them in company was Rohinton's skill. He created an environment to undertake innovative projects and show performance. Research, Development and Training were on priority agenda right from the inception of company. The present status of company is the outcome of this policy initiated by Rohinton. Significant contributions under R & D are listed below. (1) In view of the oil crisis in 1973, company developed "Indian coal- Multitherm" and first "Packaged Water Tube Boiler'. (2) In 1975 new branch was opened for manufacturing "water process plants". Though introduced for its own use, large systems were later developed for Power solutions, Fertilizer plants and Petrochemical plants. (3) In 1979 Surface coating was started by using thermopack. The concept was further extended to pre treatment plants and furnaces and also for turnkey painting systems. (4) With pioneering efforts in thermic fluid heating area, R&D department developed first Fluid Bed Boiler in 1986.

(60) (5) Steam fired vapour absorption Chillers were introduced first time in Indian markets in technical collaboration with Japanese Company. This production is market leader today. (6) Energy efficient design of solid fuel fired thermic fluid heater and its further modification to single pass design for additional cost competitiveness. (7) Amonia Absorption System introduction to amonia refrigeration to cover the closed loop. It opened up opportunities in many commercial applications. (8) Electro Precipitation/Electro Destruction test commercialisation for application Hke sewage/laundry/coolant etc. (9) New concept of Boiler cum Heater for fluid bed and travelling grate combustion options. (10) New series of upgraded supermax boilers. (11) Single effect/Double effect vapour absorbdon machine (VAM) developed to provide a cost competitive solution for DG set heat recovery options.

4.2.4 Human Resource Function : Thermax philosophy for Human Resource : The quality and approach towards human resource practices of corporate depends upon the philosophy and attitude of the Management for the human resource factor in the organisation. Right from establishment, Thermax is well known for very human and cordial approach towards the people in organisation. Rohinton Aga laid very strong foundation for developing Personnel philosophy of Thermax. The practices were extended, innovated and peaked by Anu Aga when she joined the H.R. department in 1986 and occupied as Chief in 1991. Rohinton Aga put deliberate efforts in blossoming the career and personality of Anu Aga to accept high responsibilities and challenges in future. Senior professional in H.R. Shri.Prasadkumar also contributed in making career orientation and professional skills adoption. (61) "What have been my highs and lows during my involvement with Thermax ?" When I was working in Human Resources under Prasadkumar- and later when I was heading the function- I experienced a lot of excitement because we were always creative and came-up with innovative training programme that were meaningful to the participants and bonded them to Thermax." "Organisations need growth and profits, but for enduring success and to be able to attract and retain the best talent we need a much larger purpose than just financial fitness. Thermax need to embrace Corporate social responsibility in the true spirit, by being proactive to the needs of its various stakeholders." - Anu Aga (Reaching out- Fire side- July-Sept. 2004)

4.2.4.1 Leadership and Values : "Many good things have happened in thirty years with Thermax, but two things have had a very profound impact on me. The first, my personal and professional grooming under the leadership of Mr. Aga who continues to be the incognito boss. And second my experiences with spirituality." At first reckoning these two experiences would seem unconnected because Mr.Aga was not known for any particular spiritual bias and besides spirituality isn't much of a corporate concern. However I found a compelling convergence of these two experiences. Mr.Aga was first an endearing humanbeing and then a "business person'. Spirituality in simple terms is to be a good humanbeing, instead of a human "doing'- something that the corporate world has become synonymous with. The complimentary nature of the two experiences underscores the importance of values in our lives, at the workplace and outside it.'" - R.V.Ramani, Fire side- Sept.2004

"How company values the employees in company ?" The chairperson, Anu Aga speaks on this issue in "Reaching out' column of the Fire side- hosue magazine of the group in following words-

(62) Thermax will respect all its employees and translate into action that would mean: we will push our employees to perform at their peak, because we believe that people want to give out their best. To make this happen we will train and invest in our people. We will value employees who contribute and who are honest and loyal to Thermax. After investing in a person if she is casual about her work or can not come up to the expected standards, we will not shy away from asking such an employee to leave. However unlike in West, we will not have a quota, whereby a certain percentage is labelled every year as "unsatisfactory" and is thrown out like dead wood. This indicates the managements faith in the basic values about human factor in organisation such as honesty, loyalty, sincerity and goodness in the people. Company believes in the investment in people as precious resource in the business process.

4.2.4.2 Caring Organisation and Demanding Performance : While talking of the role of HR in building a Caring and high performance organisation, Prashant Ahir, Executive Vice President, Human Resources, admits that the expectations from HR are very high and people expect a fair assessment of their performance and contribution and they are looking forward to a "vision" for their careers. He sees no contradiction between creating a Caring organisation and demanding performance. He clarifies that "The whole concept of caring has changed. From the old style "soft" caring with life time employment and high tolerance for underperformance to "hard" caring about the career and life aspirations of people working with you. Thermax has always had a strong employee orientation. Now we have to strike the right balance." As the war for talent is hotting up day to day, he warns, no management can afford to take their employees for granted. At the same time he bemons the fact that there are "old mindset" managers who are "too tolerent" and are not demanding performance from themselves or their subordinates and associates. (63) 4.2.4.3 Team Building and Leadersip Development - Key Role of HRD : Mr.Kiran Gandhi was with Thermax as Head, Training and Organisation Development. He started his career at Telco in Jamshedpur as Quality Control engineer but took interest in Labour relations during the period of unrest. He made formal entry to HRD by joining company's Management Training Center as a training officer. He felt that Training is a powerful tool for transforming people and organisations. He conceived a programme for strengthening working relationships on the shopfloor named "Human Relations at work". The programme was held in many batches and made an impact in resolving the conflicts, and team work building. The impact was documented by study team sponcered by ILO. "Training is most effective in producing change when the trainers and facilitators are themselves seen as "role models"- was the lesson. Mr.Gandhi joined Thermax as head- Training and Organisation Development. He says- "Thermax was very exciting company to work in, with very independent minded managers. But I felt that teamwork between them could be much better. I decided to address the challenge of teambuilding. I designed and facilitated several team building interventions. Later, we also used outbound workshops in a big way. We had some amazing results, including business turnarounds. This was an extreemely satisfying phase of my career." While stressing the need for Leadership and Motivation he further says- "After leaving Thermax while working with two other organisations, it was felt that the greatest need in these organisations was for employee motivation, something that Mr.Aga gave so much importance to. I realised that more than good HRD systems and latest HRD techniques what is most needed are competent leaders, who by their behaviour respect people while demanding performance. I believe finding and developing such leadership should be HRD's key role."

4.2.4.4 Human Resource Development Culture in Thermax Highlights : R.D. Aga recognised the value of "Human factor" in organisation and developed very human and value based HRD culture in the (64) organisation. He strongly believed in two things- (1) The success of organisation can not be taken as "granted'. The most competent people to run the organisation are the professionals. (2) Profts are not only the sets of figures but that of "values'. Thermax always endeavours with this foundation. Thermax is well known for informal and open organisational culture. The distinguishing features of this culture are- (1) Ability or broad mindedness to accept the errors. (2) Management of executive officials with diversified work styles and varied approaches and ability to motivate them. (3) Official recognition to employees meetings and discussions in open forum. Monitoring whether people implement in practice, what they speak. Innovative contributions of Anu Aga in creating HRD culture in Thermax include following. (4) Improving team building process in company. (5) Better "humanistic treatment" to the people. Illustratively, Management tried to understand the needs of families of employees while making transfers to Khopoli on shifting certain processes from Pune factory. (6) Attracting the talent among the trainees and retaining them with company. It was felt that employees are the best source for recruiting the people instead of depending on outside agencies. (7) Dependence on series of interviews and interactions with candidates for higher positions than engineering and psychological tests. (8) Openness, thought sharing and image sharing process to resolve disputes and know the real face of a person or "develop" that kind of a person. (9) Special efforts to raise the morale of employees in Energy and Water process divisions. It changed the picture. All such initiatives helped lot in creating healthy and positive organisational culture and worked as effective medicine.

(65) 4.2.5 Human Resource Initiatives in Thermax : With a background and foundation of value based HRD culture Thermax introduced several initiatives in performing the human resource function in the organisation. The initiatives center around the principles of performance orientation, thoughtsharing and openness. Major initiatives are discussed here.

1. Talent Management: Human capital is company's most crucial resource and Thermax continues with initiatives to develop the full potential of its people at the professional and personal levels. This involves following- (1) Indentifying critical gaps in operations and filling by acquiring talent from the market and honing the skills and competence of home grown managers through training and mentoring. (2) Manpower planning is done systematically and efforts are made to ensure availability of right and competent persons when required. (3) Potential of the employees is appraised scientifically that ensures right placement. (4) Employees are the prefered source of recruiting insted of depending on outside service agencies. (5) For higher level positions series of interviews are emphasised in addition to engineering and managerial competencies. (6) Performance oriented promotion policy is in existence though external talent is also attracted for challenging assignments. (7) As the war for talent is hot, management can not afford to take the employees granted. The concept of 'hard caring' for career and life aspirations of employees is practiced. Retention of talent is the 'policy'. (8) Process of 'Succession planning' is in existence for certain positions. Its a good H.R. practise. "A planned succession is a very healthy process that liberates you from anxieties. With my own succession planning 1 want to set an example in the organisation for our senior 32 and middle managers to emulate. We are also formalising the process with the help of HR professionals. People wonder why 1 have decided to retire at 62

(66) and why not continue being the chairperson of Thermax for a few more years. As a person with HR background, I am a firm behever in succession planning and by stepping down and finding my successor I am implementing what I believe in." - Anu Aga, Chairperson

2. Energy and Environment Research Centre (EERC) : Leadership Development and Executive Capability Development: The Energy and Environment Research Centre (EERC) is the face of Thermax. It is the place for conventions and training programmes round the year. It is also the preferred venue for internal meetings and functions. Ravi Baviskar and Ashok Sakpal facilitate various training programmes for employees. "We need to look at training as an investment, as the returns can be in multiples." Observes Ravi. A six month Management Development Programme (MDP) was organised for 37 middle level executives that completed in July 2004. The subjects running from Economic environment of business and Principles of management to Finance and Industrial Marketing were covered. Vice President H.R. Prashant Ahir observes, "The programme is envisaged to create tomorrow's leaders as Thermax consolidates its recent achievements and moves agressively on to a sustained growth phase." The course departing from the usual text book approaches was tailored to meet Thermax's unique requirements. While complimenting the participants on certification and exhorting them to excel themselves, Mr.Prakash Kulkami, Managing Director, Thermax urged them to make a difference and constantly challenge the status quo. Anu Aga- the chairperson emphasised the importance of retaining one's humanity as one moved up the organisational hierarchy. Technical training programmes and knowledge upgradation are routine activities of EERC. Programmes are structured on following basis- (1) Training needs are identified after conducting training need assessment tests among professionals at department. Company wants to develop the full potential of its people at the professional and personal levels.

(67) (2) Performance gaps are observed and studied during operations. (3) Technology upgradation in the context of global competition is considered. (4) The company has increased its emphasis on management and technical education to remain in a 'leadership position' in its core business of Energy and Environment. "Let us advance united, speak united, learn with our minds united" (inscription in the atrium) is the way forward under the leadership of L.Venkateswaran, Head, Technical Training. Kiran Gandhi, who was Head- Training and Organisational Development in Thermax says, "Training is a powerful tool for transforming people and organisations." He organised several programmes named 'Human Relations at work' for strengthing relationships on the shop floor. Thermax top management also recognised the importance of Motivation to employees and leadership development. Alongwith good HRD systems and latest techniques what is most needed are competent leaders who should perform as Friends, philosophers and guides for the people. They should be the role models for them. Identifying the potentials and developing such leadership is the key function of HRD.

3. Comprehensive Performance Management: Vision of Thermax is "To be a globally respected high performance organisation offering sustainable solutions in Energy and Environment." In line with this vision the company has developed a comprehensive performance management system. The company has committed itself to a high performance culture with sharply defined accountability and result ownership. The performance management system generates clear link between performance and pay as well as the training and development needs of people. Company makes its people to perform at their peak as it believes that people want to give out their best. Company values the employees

(68) who contribute and who are honest and loyal to Thermax. Employees with casual approach at work or can not reach the expected standards have no future in the company. Company wants to be a 'caring' and 'performance demanding' organisation. Under performance will not be tolerated. Simulteneously career and aspirations of people who contribute with high performance are recognised and taken care of. Considering the deamnd for 'talent' everywhere company can not take its employees for granted. Company has to strike a right balance between attracting a talent and retaining it with proper rewards, career development and recognition.

4. Open Forum Thermax is known for informal environment and openness in the organisation. This is the unique HR practice. While strengthening the HR process, it has institutionalised the annual 'Open Forum' where management and employees can dialogue about the concerns and operations of the company. Open Forum is an official recognition to employees views, opinions and discussions. "Though we will have hierarcy, we will encourage people to speak up and give their honest feedback. What is said is more impprtant than who said it. There will be space for individuals to have their idiosyncrasies and differences, provided these do not harm the company in any way. We will encourage expression of thoughts and genuine feelings and even at the cost of some messiness will deal with the consequences. We will value authenticity more than correctness. We want our people to agree to disagree. However, once a decision is taken, people need to align themselves to work towards a common goal. And there would be no hard feelings." - Anu Aga (Chairperson)

Features and Significance : (1) Open Forum is a distinct formal mechanism for expressing views in open and frank atmosphere.

(69) (2) It helps to improve involvement and self belongingness of the employees. (3) An opportunity to interact with the top management. (4) It is a process of thought sharing, and image sharing to respective disputes and know the real face of a person. (5) It helps to create positive work culture for attainment of common goals. (6) It also helps maintain cordial relations and teambuilding process.

5. Rewards and Recognition (1) The Reward and Recognition system includes usual payments like Basic Pay, D.A., H.R.A., C.C.A., Travelling allowance, Medicla allowance, Educational allowance, L.I.C., Incentives and the reward sysems seem to be adequate and appropriate. (2) The payments are comparable to market with a scope for improvement. (3) There is clear linkage between 'Performance' and 'Pay'. (4) While company will pay employees well, to attract and retain the best talent what will interest employees will not be 'the highest pay package' but a challening and vibrant work culture where they can make a difference. (5) The entire reward system gives a message that it is better to try and fail rather than fail to try. Genuine mistakes will be tolerated to create an entrepreneurial culture. (6) Creative and Innovative work is well recognised and appreciated. Dr.N.D. Joshi Best Innovator Award is instituted in 2001 for innovative contributions by employees. At a special ceremony Dr.R.A.Mashelkar presented first ever Best Innovator Award for developing a chiller of higher efficiency with lower energy consumption. Pravin Kame and Ashok Prusty won the award for 2003 for organising assembling facility of FM boilers at Mumbai port for overseas customers. For successful designing of new products with substantial reduction in material and manufacturing cost, Mr.A.Krishnakumar of Process Heat Division bagged the Runner Up Award.

(70) (7) Thermax Channel Associate in Cochi, Ginzac with support from the Rotary Club has insisted an award for promoting excellence in various proffessions. The award consists of a Rolling Trophy, Individual Trophy and a cash award. (8) The company has alos instituted an Award for the cause of environment as it is doing meaningful work in the areas of energy and environment. (9) Anu Aga has been honoured with the "Lifetime Achievement Award" instituted by Financial Express and Electrolux.

6. Empoyee Welfare Different initiatives for the welfare of employees include following :- (1) R.D.Aga Community Centre The R.D.Aga community centre organises variety of religious, social and cultural festive programmes. Employees and their family members can have great time on such colourful occassions. X'mas special funfair, Makar Sakranti celebrations, Ganesh Festival, entertainment programme 'Mausam Matana', funtalk by Vishwas Patwardhan on 'Nature of our sunsigns' Popular marathi play 'Yadakadachit', year end get together at Baroda office, Exhilarating picnics by groups to beautiful nature places, are some of the memorable events for the employees in recent years. The announcement of the A.S.Bhathena Foundation's Summer Programmes is keenly awaited circular by people in March every year. Parents send their children to adventure camps in exotic locations like Dandeli, Warasgaon, Kamshet etc. Swimming camps and creative workshops are favourite for all. 'Swarsandhya', the Thermax music group organised a nostalgic evening of RD Burman songs. The Thermax Antakshri team put up a great show in a fund raising event organised for India Foundation. The team was placed third in a contest in which sixty five teams participated.

(71) (2) Sports Thermax employees participate in the sports events organised by Maharashtra Kamgar Kalyan Mandal.

(3) Jidnyasa 'Jidnyasa' that means curiosity and quest for knowledge is a new Learning Centre instituted at Thermax. It is for Exploration, Discovery and Learning. Windows opening to exciting new worlds. The centre offers a wealth of books, magazines and video cassetes. It also has a dedicated internet facility. Equipped with facilities for video and CD screening, the place provides the right ambience for those who are keen to continue with their pursuit of knowledge. As said by Prashant Ahir, "Jidnyasa will help in our efforts to make Thermax a truly learning organisation." (4) Company provides facilities such as L.T.C., Holiday homes, Medical Allowance, Group Insurance, Loan facilities. Suggestion scheme, Divisional awards. Yoga classes for physical and mental fine tuning etc.

7. Team Building For attaining the set goals of Company's operations in Energy and Environment a team of trained and talented professionals with dedication and involvement is essential. Company's Operations are complicated that needs a team of R and D Professionals and diversified talent. Team spirit and co-operation among divisional experts make the work cost effective and rewarding. Improving team building process was an important initiative by H.R.department. Company sent Kiran Gandhi Ex.head Training and Development to NTL in USA to learn the latest techniques for building teams. Alongwith Anu Aga and P.M.Kumar he designed and facilitated several team building interventions. They also used outbound workshops in a big way. It had some amazing results including business turnarounds.

8. Corporate Social Responsibility Thermax has well defined and clear policy on very important issue- Governance and Corporate social responsibility. Anu aga has elaborately

(72) discussed her views on this vital issue in the reaching out column of Jan.2004 'Fire Side' issue. CSR is defined as achieving commercial success in ways that honour ethical values and respect people, communities and the natural environment. Globalisation, ecological imbalances and growing terrorism are complex stresses, which are pushing corporates to find innovative ways to deal with them and CSR would provide some answers. Corporates have to assume responsibility of intergrating social and environmental goals into business value objectives. Thermax voluntarily embraces CSR because it believes in the principles and wants to reach out to all its share holders. As a responsible corporate Thermax moves ahead of legislation or social pressure and works towards sustainable development by improving the quality of life of employees, their families, the local community and shareholders. What is most important is that Thermax follows it in its true spirit and does not adopt it just to look good. Fortunately the kind of business company is in- Energy and Environment- is very much in harmony with the concept of CSR. The stakeholders of company and policy towards them are discussed.

(1) Customers : (1) The primary obligation is to produce and deliver quality products and services on time at fair prices and ploughing back a substantial part of profit, so that they can be further improved and delivered at much lower cost. (2) Deliberately and knowingly short-changing the customer- company's culture wouldconsider it the worst crime and company will come down heavyily on such employees. (3) Innovation and Creativity would be encouraged and at the same time there would be demand for discipline and adherence to tested procedures.

(73) (4) Merely making good product does not reflect quality. Rohinton defined quality in two words- "we care." He said, "In the final analysis, quality is not just a product, nor is just purchase of services and attributes. Quality is a way of life." (5) For Thermax customer is king will never be a cliche and the customer will always be at the centre stage with all activities revolving around his needs- latent or expressed.

(2) Employees (1) Company belives that people want to give out their best. To make this happen it will train and invest in the people. (2) Company will encourage expression of thoughts and genuine feelings and even at the cost of some messiness will deal with the consequences. It will value authenticity more than correctness. (3) Since the work involves drudgery, Company will find ways of making their work pleasant. It will actively work towards zero accidents through awareness and training and safe manufacturing processes. (4) All recruitment and promotions will be based only on merit. (5) Entire reward system will give the message. It is better to try and fall rather than fail to try. Company will pay employees well, to attract and retain the best talent, what will interest employees will not be the highest pay package, but a challenging and vibrant work culture where they can make a difference.

(3) Suppliers (1) Relationship with suppliers is in some ways symbiotic and both need each other to grow and prosper. (2) The no. of suppliers be reduced and rationalised. Company to treat them as its extension and invest in technology, training and support them in ways which will help them to improve their quality, cost and time frame.

(74) (3) Supplier partnership should be experienced by the suppliers and at least once a year we should meet them to know how they feel about Thermax.

(4) Shareholders and Investors (1) Thermax will always strive to grow and be profitable, because without this, we can not exist. (2) Company value our shareholders and investors and will carefully listen to their suggestions and feedback. (3) Company will be trustworthy and transperent in financial reporting and will not hide anything eventhough it may be unpleasant.

(5) Government (1) Company will observe rules and regulations and not flaunt. (2) Disputes on unfair rules can be resolved through forums like CII or Mahratta Chamber of Commerce and Industry. (3) Thermax will create public awareness about the rules and pollution control norms to preserve the earth and help government to find creative ways of enforcing them.

(6) Environment and Community (1) As company is in the field of Energy and Environment, it needs to show the way by recycling waste water, treating chemical effluents and using energy in optimum way. Thermax is never to pollute the earth. (2) From the year 2003, Company has started earmarking 1% of its profits after tax for Community activities. (3) In addition to financial support we have to give our time, talent and efforts towards Community causes. (4) Company to appreciate and encourage the employees who are involved with Social causes in their individual capacity. (5) Sensitivity concern and care are values that we need to nurture and reward.

(75) While concluding the views on CSR, Anu Aga writes- "Can Thermax in our parameters of defining success include CSR so that we are not narrowly focussed on growth and profits alone ? If each one in Thermax assumes the responsibility not just for the wellbeing of the company and her family but for the community in which we live, I am confident that many ideas will emerge. That can make a difference."

9. Communication (1) Though separate Corporate communication department is not provided, the function is peformed by using methods like housemagazine, circulars, staff meetings, oral communications, e-mails etc. (2) Communication is effective and people get regular information about company matters, important events, achievements, plans, divisional news, and employee contributions. (3) Communication helps in moral building and cordial relations with the employees.

4.2.6 Fire side - The housemagazine of Thermax Fire side is the quarterly house magazine of Thermax Ltd. It is beautiful presentation of company news and informative experiences in print. It focuses on variety of company events in attractive and interesting way. Fireside is presented with following features- (1) Pit stop - Editorial. (2) Whats new- Recent developments. New initiatives launched by company. Product developments. New technology adoption, Projects completed, achievements etc. (3) Limelight - Information about the achievements by individuals and their family members i.e. Awards won. Honors confered, Outstanding performance in education. Certification, National and International recognition, Inoovative contributions etc.

(76) (4) Reaching Out - This is the column for Chairperson of Thermax- Anu Aga. She speaks with the employees by heart. She tries to convey her feelings in very impressive manner with open mind. She has discussed on vital issues such as 'My reflections on retirement, Making our mark in Governance and Corporate Social Responsibility', Women at work etc. All the write ups by Anu Aga are excellent pieces of literature conveying heartened feelings full of love and affection. They profess Values in life, Philosophy of Work culture. Social awareness. Positive thinking, Vipassana and meditation. Striving towards inner peace and tranquility and so on. (5) Focus - Reports on special organised events, meets, conferences etc. (6) Round up - News on High profile orders. Market treats and tieups, New alliances and other happenings. (7) Lunch with FS - Views of top management people on vital issues, prospective plans on company affairs. (8) Sign posts - Excerpts from new books on different issues relating to individual and Corporates. (9) Voices - Personal experiences by individuals on working life in Thermax. (10) Chat Room - A new occasional coloumn on some little known functions and activities in the company. (11) Slice of Life - Interesting collection of news, reports, stories, anecdotes relating to work, stress, inventions etc. observed by people.

(77) 4.3 Garware Wall Ropes Limited (Company Three) 4.3.1 Company Profile : Garware Wall Ropes Limited was established in 1976 with the vision of Late Shri.B.D. alias Abasaheb Garware, a pioneer in the plastic and synthetic yam industry in India. The Government of India honoured Mr.B.D.Garware the Founder Chairman, with the second highest civilian award, "The Padmabhushan" for his entrepreneurship and generous contribution to society. The company was in technical and financial collaboration with M/s. Wall Industries Inc., U.S.A. till 1987. The relationship with Wall Industries Inc. has evolved in to a customer supplier relationship, allowing an exchange of technical information to mutual benefit. Garware Wall Ropes Limited today overwhelmingly dominates the Indian market and is one of the largest manufacturers and exporters of synthetic cordages, fishnets, and sportsnet in the world with a truly global outlook. Garware Wall Ropes Limited is in the process of spreading its operations across the globe and currently exports to over 50 countries worldwide. The company operates today under the able leadership of its Chairman Mr.Ramesh Garware who is the youngest son of the Founder of the Garware group. Under his astute guidance and stewardship company has grown exponentially. Graduating from the prestigious Cambridge university, Mr.Ramesh Garware's multifaced experience has consolidated and strengthened the company's expertise and global presence. With his strong emphasis and belief in International quality and a vision to match, Garware Wall Ropes Limited, today is a world leader par excellence in the manufacture of synthetic cordage, meeting the need of a disparate and discerning clientele globally. Mr.Vayu Garware, a member of the Board of Directors, is a graduate-cum-laude in B.Sc. Economics with specialisation in Finance from the Wharton Business School, University of Pennysylvania, U.S.A. He is in charge of Marketing and Sales, Finance and Accounts, and other allied portfolios.

(78) 4.3.1.1 Garware Wall Ropes Products : With 3 and 4 strand ropes- Premium range (Maxima and Maxiflex) and 8 strand ropes- Premium range (Maxima and Maxiflex) Garware Wall Ropes Ltd., a global Netting and Cordage Manufacturer has spread its operations across 50 countries over the globe and has local representatives in U.S.A., Australia and Africa. With its close interaction with its global customers and a pool of Human resource comprising of Chemical engineers and Polymer technologists, the company has achieved manufacture and design of high performance tailor made products like Sapphire Netting, Olivence- MK- 3 Netting, Garfil Maxima and Maxiflex Ropes and has recently ventured into fully assembled Purse Seine Nets. Garfil Products meet exacting world standards and are synonymus with quality and reliability.

Future Plans Increase in capacity for - • Fishnets • Sportsnets • Geonets • PPMF Twines

Garware Wall Ropes Ltd. also proposes to diversify in the areas of- • Nylon Mono Filament • Acquisition in Synergic field • ERP implementation

4.3.1.2 Manufacturing Facilities Garware Wall Ropes Limited is built on the strong foundations of understanding and knowledge of Plastics. With this Strong technological base. Human resource consisting of Polymer, Chemical and Textile engineers and experience from Operations for more than twenty five years, Garware Wall Ropes Limited has developed an expertise in manufacturing of Synthetic Cordages and Nets.

(79) Located in the Cultural capital of Maharashtra, spread over 17 acres of land, the Pune plant is situated in close proximity to Mumbai and hosts the capacity to produce all types of ropes braided Twine, PPMF Yam and PPMF Twine. Garware Wall Ropes Limited Wai Plant, spread over 25 acres of land, is dedicated exclusively to the manufacturing of Fishnets, Twisted and Braided Twines, Sport Nets and Fabricated Nets. The company has now developed sound technologies to manufacture key products for Fishing, Sports goods, Mooving ropes and a variety of other Cordage applications. Manufacturing facilities at both the locations are equipped with machinery imported from Germony, Japan and Korea. In house Extrusion facilities control the quality of filaments to achieve specific properties of the final products.

4.3.1.3 Research and Development (1) Sapphire Netting for demanding fishing conditions, which attains the best, knot breaking length and excellent abrasion resistance in comparison to the available brands of Netting. (2) Olivene MK-3 Netting for better knot breaking strength and abrasion resistance. Garfil Maxima ropes produced from blended polymers with special lay for low weight and high strength. (3) Grafil Maxiflex ropes of composite fibre construction made from high tenacity polyster and polypropylene yarn in specific composition. Fully assembled Purse Seine Nets produced for the largest trawl manufacturer in the North Atalantic and Menhaden Nets and Catfish seines supplied to customers in the America. (4) Company's continuous search for new avenues has provided with an opportunity for foreward integration and offer Value added products. Garware Wall Ropes is today a supershoppe for fishing gear, sports nets, mooring ropes, geonets, twine and a variety of other cordage applications. (5) Company is proud to be the registered suppliers for quality critical applications such as Defence, Shipping, Oil Exploration and Telecommuncation. (80) In addition to the In house R&D. Garware Wall Ropes Limited has tie ups with reputed Research and Development laboratories and Consuhants in various areas of specialisation around the world. Company's quest for Excellence has paid rich dividends and has patented some of its premium products. Company's efforts in R & D have led to its representation on the Board of National Standards Institute and Plastics Institute.

4.3.2 Human Resource Practices in Garware Wall Ropes Limited 1. Human Resource Philosophy and Approach : Garware Wall Ropes Ltd. was established in 1976 at Akurdi, Pune. It was jointly established by Garware Filament Corporation (which was already in existence at Chinchwad in Garware Nylons Ltd.) and M/s. Wall Industries Inc., U.S.A. The Technical and Financial collaboration continued up to 1987. Late B.D. alias Abasaheb Garware was the Founder Chairman of Garware Wall Ropes. B.D.Garware was a Great Maharashtrian Industrialist of National and International repute. Bom December 21, 1903 he was the Founder of Garware group of Industries. Starting as a businessman in used Imported automobiles, he has pioneered many Sunrise industries in India. In an honorary capacity he has headed such major organisations as Maharashtra State Financial Corporation, the State Bank of India and the Maharashtra Economic Development Council. He has been associated with a host of trade organisations and Chambers of Commerce and Industry. He has led and participated in various Industrial delegations from India all over the world. He was appointed Sherff of Bombay in 1959. The other Honours, conferred upon him are 'Padmabhushan' by the Government of India and an honorary D.Litt. by the University of Pune. The name of 'Garware' is very much associated with Education, Sports, and other Socially oriented organisations and activities. Garware Institute of Career Education and Development is perhaps the best example of Abasaheb's interest in these fields of National interest.

(81) Garware's numerous speeches and addresses delivered on Indian Economy are published in a book :The Sage Counsels.: As B.D.Garware not only established himself in Busines and Industry but achieved recognition as very successful industrialist, his views on Financial and Industrial matters, as also on Social and Cultural subjects were avidly saught by a number of organisations in these fields. The numerous honorary positions he held also required him to speak at various functions. These speeches delivered by him in his later years reflect the mature and borad based thinking. He is constantly guided by the considerations of Economic and Industrail progress of the Country. His personality is formed of the superior stuff of patriotism, which encompasses the wellbeing of all layers of his countrymen. This has guided him in his Industrial ventures and this is the same spirit, which informs his public utterences. These speeches leave a legacy of clear thinking and thought provoking debate the type of which can rarely cum our way. Shri.B.D.Garware was a Pioneering Entrepreneur in the Plastic and Synthetic yarn Industry in India. He was great Visionary and Philanthropist. He always had a deep "Concem" and "Care" for the labour in his companies. His thoughts and views has strong impact on Human Resource policies of Garware Wall Ropes Ltd. While speaking on his approach towards the significance of workforce and its contribution he mentions- "While we should have great regard for the technical development in the West, We must not make a blind carbon copy. We should prefer to depend upon the intelligence of our own people, the natural resources and the available capital which alone will, ultimately help our country to make permanent progress. No tangible progress can ever be made if people make it a habit to depend upon the Government to do everything and do not come forward to make their own efforts in improving their lot." "Professional Management in India should, therefore, take cognizance of this basic philosophy of not to import the practices which (82) have succeeded abroad merely because they are readily available. Such an attitude tends to hurt the development of local talent. It inhibits the evolution of local designs consistent with the needs of the community." - B.D.Garware (from "Sage Counsels')

"Workforce" being the subject of interest and concern all the times, while recruiting new workers in company. He always insisted to give preference to the sons of conventional occupationist like carpenter, goldsmith, potters etc. Company has followed a policy of providing opportunities of upgrading the knowledge and skills of meritorius workers in the company. Many employees like Shri.G.S.Nanekar, S.B.Parab, N.S.Temgire, Sudam Kasabe, S.M.Golande, P.S.Kadam, S.M.Khisti rose to senior positions in the company with valuable guidance of Abasaheb Garware. Abasaheb Garware was philontropist in true seuce. He was very human and cordial in approach towards the employees. He was kind and generous enough in offering financial assistance to an employee for Medical treatment and Hospitalisation of his father as Company has no personal loan scheme. He also showed gesture to another employee- Shri.Kadam- by changing his shift to enable him to attend the lectures in college. Several employees in Garware Wall Ropes have such remembrances in their mind showing very Sympathetic and Helping nature of Shri.Garware. This reflected the Human Resource Philosophy of the company.

2. Capability Building : Company has no seperate Training department but it has well designed and widely shared Training policy. Induction training is well planned and given adequate importance. Training needs are identified on the basis of Competency evaluation of employees. Performance gaps assessed through appraisal and Performance Opportunities for the next year. External training programmes are organised considering quality and suitability. Effectiveness of Training Programmes are evaluated.

(83) Training programmes have benefited the employees in updating the knowledge and improvement in skills. It has also helped in rejection percentage of work and improvement in quality of work. It is experienced that overall Performance and Efficiency has also increased. To some extent it has helped in Cost reduction and Attitude change. Training policy gives emphasis on "Business Case Study Approach", said Shri.Ajay Vaiday, Chief, Human Resource department. To illustrate, a two day workshop was organised in Sept.2004 on "Effective Marketing and Selling Skills" for concerned officials. The programme was conducted by Mr.Dinesh Kotasthane of "Value Address". The delegates were taken through the paces with Case studies, Role play etc. Brain Storming sessions are organised for sharing views, experiences and evolving new concepts and ideas. Ropes, Twines and PPMF division organised with the help of cross functional group members such Brain Storming sessions for sixty five employees and officials. The Programme was a success. It was very interactive and employees participated overwhelmingly. About 90 Ideas were evolved. From these ideas, following was achieved- (1) Expansion of Extrusion department by 6%. (2) Pre-Twisting Shop Centralisation (Process-Layout). (3) Substantial reduction in Wastage. (4) Convenience in Jobs nature and Profile to control Wastage of Manpower. Annual Production Conferences are held to take review of production in past and decide future plans of action in view of the production targets. The last conference was held in February 2005 in which Top management persons Shri.Vayu Garware, M.P.More and Tushar Patel guided the participants and shared their views on Modem techniques of increasing productivity such as Six sigma and Lean manufacturing. Departmental heads from Pune and Wai plant participated in the conference.

(84) 3. Rewards and Recognition : Wage policy of company is fair. Different components of Wage structure include Basic Pay, D.A., Bonus, House Rent Allowance, Travelling Allowance, Medical Allowance, Educational Allowance, Overtime Payment, Attendance Bonus, Shift Allowance, Leave Encashment, Incentives, Drivers Pay and Super Annuation. Though there is always scope for improvement, employees are happy with present structure. Wage agreement valid for the period of 1st December 2004 to 30 November 2007 was signed in February 2005 between Management and The Union. The Union assured sparing no efforts to attain the Production targets, to make reduction in Waste, make Improvement in attendance, Implement 5S as predetermined etc. On the assurance by Union General Secretary, Management agreed to a substantial rise in the remuneration package. The Performance or Work efficiency of the employees is recognised by company by different initiatives like-

(1) Performance linked Incentives : Company has instituted Incentive scheme linked with performance. Work plans are prepared and five point scale is introduced.

(2) Achievement Awards : Special awards are given on certain specific and noteworthy achievements by the employees. The achievements are concerned with Innovative production methods, Cost reduction in use of Materials, Purchases, Logistics, Development of methods. Use of Internal expertise etc. Such employees are honoured and awarded in function. Their contributions are published in the housemagazine- Snehbandh- of company. Following honors and contributions are listed for illustratative purpose. (1) Shri.S.S.Kulkami (Electrical Maintenance) For fixing accurate spool weight on P.L.C. machine that maintained final weight +/- 5%.

(85) (2) Shri.S.S. Patil (Packing department) For returning one and half tons of surplus stock in the same container to the supplier saving an amount of Rs. 10,000/-. (3) Shri.Bhosale, Shri.Shetty and Shri.Ved (Mechanical Maintenance and Production). For improvement in "Extruder Die" resulting into 1.5 metric ton increase in production. (4) Shri.R.V.Pawar - (Maintenance Department) For improvement in "take up winder' of Harzog Brading Machine. It eliminited one process that required fourteen different processes. (5) Shri.B.V.Gadekar (Sub Contracting Department) For reduction in the loss or damage in coiling function. (6) Shri.S.M.Kardile (Purchase Department) For making use of "Non Food grade Master batches' insted of "Food grade Master batches'. It made substantial savings in Raw material cost. (7) Shri.Janardan Patil (Purchase Department) For taking additional responsibility of the development of office for Shri.Vayu Garware. (8) Shri.R.R.Tupe (Utility Section) For savings in electrical energy in the department. (9) Shri.K.C.Rade (Maintenance Department) For wiring work of extrusion machine, electrical cable tray and Godget panel. (10) Shri.Thakur and Shri.Dhole (Maintenance) For complete panel wiring of machine 1 and 2 electrical connections and telephone wiring work. (11) Shri.Sham Kumbhar (Maintenance) Simplifying the process of changing gears of I 50 machine.

(3) Suggestion Scheme : Company has introduced "Suggestion Scheme" from 8 July 2004. Employees responded the scheme very positively and gave 514 suggestion. Out of these, 112 suggestion were accepted for "Idea Award" by the Suggestion Working Committee. 31 suggestions are implemented by workers, employees and departmental heads. Engineers in Production and Maintenance departments took special efforts for implementation. Award distribution function was organised in which 27 employees were

(86) given "Suggestion Implementation Awards" for implementing the suggestions. Shri.Ajay Vaiday, Chief H.R. praised the employees for overwhelming response. Prizes were distributed to all suggestions. Vice President- Operations, Shri.S.P.Mone and Associate Vice President of Corporate Department Shri.S.M.Bamane also guided the employees. Fifteen workers from Wai plant of the company were also felicitated for their innovative ideas which have been implemented and have boosted productivity while reducing cost.

(4) 5 S Audit: At Wai plant 5 S audit is conducted everymonth at departmental level. The department scroing highest in the audit is awarded a prize of Rs.One thousand and "Best House Management Trophy'. The prize is awarded in a function.

(5) Attendence Awards : For regular attendence employees are given Attendance Awards on the basis of actual days attended by them. The scheme consits of three prizes - (1) Attendence for more than 291 Days - First Prize (2) Attendence 281 tO 290 Days - Second Prize (3) Attendence 272 tO 280 Days - Third Prize. During 2004 year 242 workers won the attendence prizes of which 47 first, 109 second and 86 third prize at Pune plant. Shri.R.B.Tarate from Wai plant has made "hatrick' by winning first prize for three consecutive years. Attendence Year 2002 - 303.0 Days. Attendence Year 2003 - 307.5 Days. Attendence Year 2004 - 312.5 Days.

4. Sports and Cultural Initiatives : Company promotes Sports culture among the employees. It provides training facilities in different games. Company has Cricket,

(87) Kabaddi and Volleyball teams. It participates in Industrial tournaments organised by Kamgar Kalyan Mandal. Garware Wall Ropes also sponcered Tennis Competition arranged by Pune District Interoffice Sports Organisation. Sports activity helps to promote team spirit among the employees in the company. Under Cultural programmes, "Annual Social" is very popular event for all employees. In Annual Gathering, Meritorius children of employees successful in 10th and 12th std. examinations are felicitated. Employees with special achievements in different fields are also felicitated by giving mementos of Company. Employees who have completed twenty five years of service in company are honoured with their spouces by offering gifts and mementos. Entertainment programmes like Musical orchestra followed by sumptuous dinner are appreciated by all. Annual Gathering for 2004-05 was celebrated on 26th January 2005. Employees union takes special efforts in organising the function. "Khande Navami" and "Dasera" have special significance in Industrial community. Workers worship "Machines" on the days to express gratitude for contribution in the production process and development of company. At both plants of company those religious ceremonies are observed with enthusiasm. Employees participate in Sports and Cultural events specially organised for them on the occasion. Prizes are distributed to winners. "Independence Day' is also celebrated with enthusiasm and the senior workers at both the plants hoist the flags. Poojas are also performed of the New machine acquired by company to boost productivity.

5. Social Responsibility : Shri.B.D.Garware, Founder Chairman of Garware Wall Ropes Ltd. was not only Innovative entrepreneur but also a great patriot with a concern for people in country. His Corporate philosophy was directed towards public welfare. He strongly believed that business enterprises develop and prosper from the resources in Society and they owe the responsibility to make social upliftment. A part of its wealth should be

(88) generously returned to Society for its cause. He established institutions like Garware Foundation, Garware Charitable Trust, B.D.Garware Research Centre and Aba Garware Research Foundation. He generously offered assistance to the cause of Education, Medical Services, Sports, Cultural and Social Work, Serving the Nation through social obligation was his principle. This is the great Ideal. Several Institutions like Maharashtra Education Society, Pune, Women Education Institution Sangli, Mumbai Cricket Association, Garware Club House, Garware Pavalion, Vimalabai Garware Krida Mandir, Breach Candy Hospital- Mumbai, Centre for Career Education at Mumbai University, Garware Organic Research Centre at Pune University etc. are started and developed with the support from Garware s. Garware Wall Ropes Ltd. organises several programmes that fulfill social obligations. Sending rescue teams at "Killari" and "Bhuj" in quake disasters, Financial assistence to the victims, Blood Donation Camps, Distribution of food packets to "Warkaris" in the procession from "Alandi to Pandharpur" in July every year, are few examples that demonstrates company's social work.

6. Quality Circles : This is an important HR initiative introduced by the company. Various employee groups have formed "Quality Circles" for enhancement of quality in production and different areas of work. They identify the problems in company, think over it and fmd out the solutions by adopting scientific methods. Quality Circles help to solve problems with innovative ideas conceived by a group of voluntary members. It also develops team spirit among the employees. Quality Circles also participate in Presentation Competitions organised by Quality Circles Forum of India, Pune Chapter and Other Organisations. Two Quality Circles from Garware Wall Ropes Ltd. made impressive presentations on important problems in company operations. Tragati' quality circle made presentation on "Water Conservation" at Q.C.E.C. Bhosari and won the prize for outstanding performance. The

(89) same presentation was repeated at the programme organised by Poona Divisional Productivity Council. Another presentation was made by "Utkarsh" quality circle on "Reducing Wastage in Extrusion Department" at an event organised by P.D.PC. The objective of this presentation was to reduce the percentage of waste in the department from 1.5% to 1.00%. On being motivated by the success in solving the problem of "Water" usage at the plant, "Pragati" circle formed another quality circle "Pawan" which is working on the subject "Savings in cost of Compressed Air". Management fully supported and guided to those circles. Management appreciated their work and honoured with certificates.

7. Communication : There is no separate department for Corporate Communication. Various methods used by company for communication are House magazine "Sneh-Bandh". Notices, Ciculars, Personal letters. Staff meetings. E-mail, E-magazine. Employees get regular information about company performance and activities. Achievements and Awards won by employees are published in the housemagazine. Communication systems in company help to raise moral of the employees and maintain cordial relations with them. Snehbandh also released a special issue in the memory of Founder Chairman of company Late Abasaheb Garware. Employees of company have expressed their warm and sentimental feelings through memorable events and reminiscences with their respected leader Abasaheb Garware, who was "Friend, Philosopher and Guide' in true sense.

8. Saturday Picnics : Bonding between colleagues makes stronger and cohseive teams. In keeping with this, the HR department has initiated the "Saturday Picnics" concept. The one day Outing has fun exercises and games incorporated that help bring colleagues closer. The picnic also serves as a refreshing and rejuvenating change. It can be righdy described as "Away from work, still close to work".

(90) 9. Industrial Relations : The company has around 1200 employees in its factories and regional offices. The relations with the workmen and staff have been cordial during the years. It is the result of Management philosophy for Human Resource in the company. Garware Wall Ropes Employees Union was established in 1977 when the company was shifted to Chinchwad from Garware Nylons Ltd. The Chairman B.D.Garware was present at the time. Garware Wall Ropes Ltd., originally started as Garware Filament Corporation had only 375 workers. The union came in to existence when it was transformed in Garware Wall Ropes Ltd. at Akurdi, Chinchwad in 1977. Ashok Pardeshi was the Chairman and Shri.G.S.Nanekar was the Secretary of the Union. Right from inception the approach of union was very co-operative. Union always opposed for negative acts like Work stoppage, Go-slow, Baseless interuptions in Work, Non co-operation etc. The present Chairman of the union Shri.M.RDhamale, Vice Chairman Shri.D.J.Bahirat, Secretary M.J.Jadhav and other Office bearers give the entire credit of such "Positive approach" of the union to all workers and office bearers. Involvement in work and affection towards company is reflected in the action. There are no events, so far, happened in company like strikes and lockouts. It is the Strength of Union. Union has always avoided the extreems and preferred compromise. Management also responded positively which could make it possible. Union motivated the employees to improve attendence. General Secretary Shri.Jadhav mentions, "There is vast change in the working of company both quantitatively and qualitatively. Due to fast technological developments, adoption of multiple skills and upgradation have become almost essential. Workers have accepted this as a "challenge" with positive apporoach. They started taking interest in modern technology, computerisation, automation etc. Workers can even handle the entire plant successfully in the absence of supervisor. Few workers have reached to higher positions on their "Merit' and we are proud of the same."

(91) "Unity is the Strength of union" and Garware Wall Ropes Ltd. union has the strength. The union started a practise of "Flag hoisting" at the hands of Senior most worker on the Independence Day celebration at Company. The practise is a matter of "Honour' for the workers. The union organises different programmes for the creation of Social and Cultural environment in company. Annual Social gathering is very popular event arranged by union. Employees and their wards are felicitated for special achievements and meritorius performance in education, sports, cultural events etc. Entertainment programmes like musical orchestra is also arranged which is followed by dinner. Employees with family members participate and enjoy the programme. Summer Camps for the children of employees are arranged every year and union participates in it. The union recognises its social responsibility and arranges programmes like sending a team of volunteers to quake and flood affected areas for disaster management and timely help, financialassistence , blood donation camps etc. In recognition of unions very constructive and multifaceted role, it has won following prestigeous awards- (1) Best Workers union award - 1995. (2) Best Workers union award - 2003. (3) Annasaheb Magar Foundation award - 2004. (4) Shrambhushan Puraskar to Shri.M.P.Dhamale, Chairman, Garware Wall Ropes Ltd. Union. The union is prosperous and successful on the solid foundation of the love, affection, dignity and values for the labour guided and cultivated by Late B.D.Garware, the Founder Chairman of the company.

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