A Study on “Human Resource Functions” with reference to

Visakhapatnam Port Trust at Visakhapatnam

Project Report Submitted in the Partial fulfillment for the award of

Post Graduate Diploma in Management

By

Vijay Shukla
(Registered No. VBS/2008-10/014)

Under the Esteemed Guidance of

Sri VTSN Murthy

{MHRM, MA(Psycho)}
Assistant Professor

Viswanadha Business School

Approved by AICTE, Ministry of HRD, Govt of India, New Delhi
Mindivanipalem, Sontyam, Anandapuram Mandal
Visakhapatnam – 530045
2008-2010

1
COMPANY CERTIFICATE

2
 CERTIFICATE

This is to certify that the dissertation entitled “Human Resource Functions” in

Visakhapatnam Port Trust, Visakhapatnam, is a bonafide work done by Mr Vijay

Shukla, a student during 2008-10, under my guidance and who submitted the

project for partial fulfillment to the award of the 2 year Post Graduate Diploma in

Management Degree

Place : Visakhapatnam

Date: 24th May 2010

Director. Project Guide.

3
 DECLARATION

I, Vijay Shukla here by solemnly declare that the project report entitled “Human
Resource Functions” at Visakhapatnam Port Trust, Visakhapatnam submitted to
Viswanadha Business School is a genuine and bonafide work done by me and is
not submitted to any other University/College or published any time before. The
project work is in partial fulfillment of the requirement for the award of the
Degree, Post Graduate Diploma in Management

Place : Visakhapatnam Vijay Shukla

Date: Reg. No. VBS/2008-10/014

4
 ACKNOWLEDGEMENT

I express my deep and sincere gratitude to Prof. A Babu Rao, Director,

Viswanadha Business School for having permitted me to do my project work at
Visakhapatnam Port Trust.

I would like to thank my project guide Shri VTSN Murthy, Viswanadha Business
School for having provided me with his valuable guidance and cooperation to
make this project a successful one.

I express my personal thanks to Mr P Vijay Bhaskar, Head Asst. Personnel

Department of Visakhapatnam Port Trust for permitting and supporting me to do
this project.

I would like to express my sincere and heart full thanks to the office staff of the
organization for providing me the required information.

I would also like to express my heartfull thanks to all those who have directly or
indirectly assisted me in completing my project.

I owe a great many thanks to a great many people who helped and supported
me during the course of my project.

Vijay Shukla

5
INDEX CHAPTER DETAILS PAGE NUMBER

Chapter1

1.1 Introduction 7

1.2 Objectives of Study 8

1.3 Need for Study 9

1.4 Methodology of the Study 10

1.5 Limitations of the Study 11

Chapter 2

2.1 Industry Profile 12

2.2 Company Profile 17

2.3 Organization Structure 18

Chapter 3

3 Theoretical Study 19

Chapter 4

4 Analysis and Interpretation 53

Chapter 5

5.1 Summary 54

5.2 Findings 55

5.3 Suggestions 57

5.4 Conclusion 58
Bibolography 59

6
1.1 INTRODUCTION

According to Brewster and Rich bell, defined HRM policy as, "a set of proposals
and actions that act as a reference point for managers in their dealings with
employees".

Human resource management (HRM) is the strategic and coherent approach

to the management of an organization's most valued assets - the people working
there who individually and collectively contribute to the achievement of the
objectives of the business. The terms "human resource management" and
"human resources" (HR) have largely replaced the term "personnel
management" as a description of the processes involved in managing people in
organizations. In simple words, HRM means employing people, developing their
capacities, utilizing, maintaining and compensating their services in tune with the
job and organizational requirement.

Human Resource Management(HRM) is seen by practitioners in the field as a

more innovative view of workplace management than the traditional approach.
Its techniques force the managers of an enterprise to express their goals with
specificity so that they can be understood and undertaken by the workforce, and
to provide the resources needed for them to successfully accomplish their
assignments. As such, HRM techniques, when properly practiced, are
expressive of the goals and operating practices of the enterprise overall. HRM is
also seen by many to have a key role in risk reduction within organizations.

7
1.2 OBJECTIVES OF THE STUDY

 To understand the human resource management activities performed in

public sector organization like port.

 To identify the key environmental influences on HR planning

 To understand the basic approaches to HR planning and recruitment

strategy

 To understand the relationship between strategic HRM and human

resource information systems (HRIS)

 To review the quality of work life, employee participation and industrial

democracy

 To understand the performance management system used in the

organization

 To understand the compensation policies as per grade in the organization

 To understand the importance and application of Industrial relations

 To review the role of training and development in the organization

8
1.3 NEED FOR THE STUDY

It is very important to understand the importance of Human Resource

Management in a big public sector organization. The nature of job and the

information obtained would help to relate data and find efficiency and correlation

about sharing best practices. This would also help to identify the privilege and

shortcoming that may be existent in the organization and would be a big help for

other public or private sector relevant organizations. Hence this study titled

“Human Resource Functions” with reference to Visakhapatnam Port Trust at

Visakhapatnam

9
1.5 METHODOLOGY OF THE STUDY

The study dealt with interaction with various department personnel. It also was
about observation on a daily basis of the employees who are working in firm in
various departments. The assistance was taken for information from the various
department heads who has helped with several statistical data. Personal
interaction with work force and their feedback on issue like work environment,
food and health care was noted. The methodology was traditional in approach
and every function of HR first was read in the library about its application and
then the same was observed on the field. A comparison can be cited about the
actual and factual conditions prevalent with respect to workforce management.

PERIOD OF STUDY
The study was under taken for a 4 weeks from December 26th 2009 to 27th
January 2010. During this period the review about the ongoing procedures and
the real time work environment and on the job performance of the workforce was
observed to have practical exposure and broader understanding of HR functions
prevalent in the organization.

1.6 LIMITATION OF THE STUDY

10
 Time was the main constraint. It was difficult to finish such a
mammoth task within the stipulated time frame.

 Since the project is of qualitative nature the feedback and

review was of individuals opinion and difficult to interpret with
numbers.

 Some information cannot be accessed due to its confidential

nature.

 A lot of time was spent in waiting to meet the concerned

i ndi vi dual s due t o t hei r nat ure of j ob and uncert ai nt y i n t i mel y

availabil i ty .

11
2.1 INDUSTRY PROFILE

A Port is a place at the shore where ships dock in and are protected from

storms or to load and unload their carriage, it is Heaven for ships. It links sea,

traffic, and surface and in some cases river traffic also.

Ports are commonly known as places of shelter, safe with necessary infra

structure for the purpose of trade. In that views there are airports, seaports are

gateways to work. Sea ports play important role part in one's country growth. At

present, over 80% of all International trade goes by sea. Technically speaking,

port is one which handles more than one million tonnes and cargo annually and

which possess harbor and other facilities to receive ships of 4000 or more.

Ex: Mumbai, Visakhapatnam etc. Ports are meant to provide sea borne

vessels some basic services such as dock harbour or berth facilities for the

passengers for cargo handling transport.

Nearly 6000 km long coast line of India is studded with 163 old ports. Two

are major ports under the regulatory authority of the Central Government.

The remaining are other ports commonly known as intermediate and

minor ports and they come under the administrative control of the respective

State Government. In addition, 32 ports cater to the needs of islands of

Andaman and Lakshadweep. Only 26 of the state ports service ocean go in

vessels. Most of these ports loading/unloading operation is carried out at during

fair season only. Rest of the state port cater to largest carrying pellets, cement,

fishing vessels, country craft carrying local cargo, ferries etc,

12
The Major: ports are:

 Kandla

 Mumbai

 Jawaharlal Nehru port

 Marmagoa Port

 New Mangalore

 Cochin

The above 6 ports are situated on the west coast.

The under mentioned 5 ports are situated in east coast.

 Tuticorn port

 Chennai port

 Visakhapatnam port

 Paradweep port

 Calcutta port

 Ennore port

Intermediate port is one, which handles not less than 1,500 tones of cargo

annually and is important from the view point of passenger’s traffic, defense and

customs. Ex : Kakinada.

A port handling less than 1,500 tones of cargo is termed as Minor ports.

Ex: Machilipatnam, Bheemunipatnam.

13
 History:

The need for a port in this part of the country was emphasised as early

as in 1858 in a report of a British Survey Party. This was underlined in the report

titled “Vizag, the Port of central Provinces” (1877). Mr. E.S. Thomas, while

submitting the proposals for creation of the port in 1872 described it as the most

natural and most easily formed port’ on the east coast of India. The daughter of

Sir Arthur Cotton described the Harbour as a natural outlet for northern India by

a direct railway to Allahabad and observed the location as a strategic point on

the eastern coast where incomparably the `best harbour’ can be made by a

single break-water run out from the bold promontory of the Dolphin’s Nose.

It was only in 1914 that the proposal for construction of a harbour at

Visakhapatnam was initiated by the then Bengal Nagpur Railway and in 1922 a

proposal of Col. H. Cartwright Reid of British Admiralty for the construction of a

harbour at the mouth of river Meghadrigedda was adopted.

The construction work which started in 1927 continued upto 1933 and the

first commercial vessel S.S. JALADURGA of M/s. Scindia Steam Navigation Co.,

entered the Port on the 7th October, 1933 providing initially a sea outlet for

Manganese Ore.

The Saga of the construction of the harbour particularly forming of

entrance channel, sinking of two old ships `JANUS’ and `WELLESDONE’ to

form break-water instead of building a wall in the sea were all feats in
14
engineering and are subjects of discussion even today. Mr.W.C. Ash and Mr.

D.B. Ratternberry were the Engineers who played prominent role in constructing

this beautiful harbour. The port was formally inaugurated by His Excellency Lord

Willingdon, the then Viceroy and Governor General of India on 19th Dec. 1933.

Nestling among a chain of hills, the Vizag harbour is really one of the

wonders of the nature, as if it has been intended by God that a man in this area

must benefit by a very safe anchorage to ships. The entrance channel is

protected by, two massive rock hills, namely Dolphin’s Nose on the Southern

side and Ross Hill on the Northern side and these two hills shelter a bay which

possessed sufficient depth for the ships which were engaged in sea trade upto

1950s. The high promontory of the Dolphin’s Nose hill into the sea provides

protection from cyclones which strike the East Coast. The low tidal range of a

maximum of 1.82 mtrs., is also advantageous for the location of the Port. The

existence of this natural harbour has transformed the sleepy fisherman village

once called as `Vizag’ into one of the fastest growing industrial cities of the

world.

The Port has striking similarities with Durban Port of Africa in the sense

that the later is also surrounded by a hill on the South Side. It is due to this

reason that Engineer Mr. W.C. Ash studied Durban Port before developing this

Port. Mr. Chalapathi Rao, one of the famour writers described the Docks and

Harbour works of this Port as `PICASSO’s cubist pictures.

15
 The port Administration which was under Bengal-Nagpur Railway in 1933

passed through different departments and Ministries of the Government. of India

till its transfer to the Port Trust in Feb. 1964 under the Major Port Trusts Act,

1963 as shown below:

1926-35 RAILWAY BOARD

1935-37 COMMERCIAL DEPT.
1937-42 COMMUNICATIONS DEPT
1042-44 WAR TRANSPORT DEPT
1944-46 DEFENCE (WAR) DEPT
1946-56 BENGAL NAGPUR RLY
1956-64 MINISTRY OF TRANSPORT

1964-FEB TRUST, UNDER MPT ACT

When opened for sea going vessels in 1933, the port had only three

berths with a cargo handling capacity of 0.3 million tonnes.

16
 2.2 COMPANY PROFILE:

Visakhapatnam port trust is one of the 12 major ports in India. It is ideally

located almost midway between Kolkata and Chennai 1880 kms from Kolkata

and 780 kms from Chennai. Latitude 17° 41' and longitude 80° 18'. The port is a

natural port endowed with deep water basins and has been serving a rich and

vast land comprising of Andhra Pradesh, Orissa. Maharashtra and Uttar Pradesh

states.

Port of Visakhapatnam, the Gateway to the East Coast of India. It plays a

crucial role as the middle point distribution base for Southern, Eastern, Central

and Northern states of India. Described as the "Brightest Jewel" of all Indian

major ports for its outstanding performance and productivity, Visakhapatnam

Port serves as a catalyst in spurring domestic and international trade.

The Port of Visakhapatnam pledge to offer cost effective, reliable and

trustworthy services to the full satisfaction of our customers and facilitate

opportunities for business development. It continues to co-operate with the

federal/State Governments and naval authorities in management of the port in

consonance with the best global practices

Visakhapatnam Port Trust is one of the leading major ports of India, which

has been playing a vital role in fostering the country's foreign trade and

economic development. Originally conceived as outlets for manganese are

17
exports in 1933, the Port has gone from strength to strength, adopting itself to

the needs of fast changing sea transportation system.

Strategically located on the East coast, the Post is not only serving the

commercial requirements of the country but also promoting industrializations of

the hinterland by acting as a catalyst for location of various types of port based

industries,

2.3 ORGANIZATIONAL STRUCTURE:

18
19
3.0 THEORETICAL STUDY:

Human Resource Management Department- Functions:

(a) Personnel Management System (PMS) - deals with

establishment matters

(b) Industrial Relations.

(c) Human Resource Development Centre (HRDC) - Looks after the Training
and Development of the employees

(d) Welfare.

PROCUREMENT

1. Human Resource / Manpower Planning:

Man Power Requirements :

It is through Direct Recruitment. According to Recruitment Rules, the recruitment

procedure will be carried out. In accordance with Recruitment Policy, it shall be

published in National daily newspaper, in Doordarshan and notified at

Employment Exchange. Form-C consists of all duties and responsibilities of

various cadres.

2. RECRUITMENT:

It is the process of searching for prospective employees and

stimulating them to apply for jobs in an organization.

Manpower sources of the Organization:

20
Internal Sources:

Visakhapatnam Port Trust follow internal sources like if the employees

who are working in organization are having the required job specifications for the

particular job, then, they are recruited for the job. Even the sorts-arid daughters

of the present employees who are credited on the medical grounds are also

recruited. The descendants of the deceased employees and who died on service

or who are in duty are also recruited.

External sources:

Recruitment through external sources is by Employment Exchange.

Whenever there is a need of personnel for recruitment the requisition for the

required posts, will be forwarded to the local employment exchanges and hence

those who have listed in the employment exchange are invited to apply for the

job.

Implementation of Reservation for various categories:

The Reservation Policy in accordance with existing recruitment rules for

the candidates of SC/ST/OBC, is being implemented. Direct recruitment means,

recruited on the basis of competitive examination and interview by staff of

selection committee. The candidate for appointment by direct recruitment shall

apply prescribed by authorities giving their qualifications and experience.

21
Particulars of SC and ST reservation as on 31-03-07

Category Total no. of Percentage of No. of employees

employees employees as total employees appointed in 2006-07

on 31.03.07 in 12006-07

SC ST SC ST SC ST

Class-1 44 20 22.44% 10.26% 1 (PRO) -

Class-2 40 15 28.57% 10.71% - 2 (PRO)

Class-3 454 172 14.56% 5.51% 25 (PRO) 8 (PRO) 4

28 (PRO) (PRO)

221 77 13.28% 4.63% 5 (PRO) 2 (PRO)

4.02% 16 (DR)
Class-4 59 7(S& 33.90% 24 (DR)
(S&M) 4(DR)
(S&M) M)
(S&M) 2(DR)

S : SANITATION DR: DIRECT RECRUITMENT

M : MALARIA PRO : PROMOTION

22
SELECTION

It is the process of ascertaining the qualifications, experience, skill,

knowledge etc., of an applicant with a view to appraising his/her "suitability to a

job appraising.

Selection Procedure

Selection Procedure at Visakhapatnam Port Trust aims in pricing up the

individuals with requisite qualifications and competence to fulfill jobs in the

organization. It seeks to eliminate as many as unqualified applicants.

(a) Design of Application Blank

This is a widely accepted method getting information from prospective

applicant, which enables management to make a proper solution. The

information required is to be given to the applicant on hand writing. Generally the

information to be gathered through the applications refers to the following:

 Name and Address of the-applicant.

 Personnel information-age, sex, marital status.

 Education.

 Physical Characteristics.

 Work Experience.

 Hobbies and Interests.

 Membership of association.

 Financial Status.
23
 Statement of purpose.

 Reference.

24
(b) Selection Committee:

For class-1 and class-2 - Chairman, Dy. Chairman, HRM-HOD. FA & CAO and

HOD of the concerned department.

For class-3 and class-4 - Selection committee chairman -HOD, 3 senior level

officers, will interview the candidate. For reservation candidates, Reserved

community officer will also be present.

(c) Administration of tests: Aptitude, trade, etc:

Aptitude test : It measures the talent abilities of a candidate to learn

new job or skills.

Intelligent tests:

It is also called as proficiency tests. They measure the skills or

knowledge, which is acquired as a result of training programs on the job

experience.

Trade tests:

Technical jobs require a degree of perfection in their respective tests. It

checks the technical capabilities as various technical persons like Engineers,

Stenographers, and Electricians etc.

Medical tests :

Medical tests are conducted for technical grade and also for other grade

as I, II, III, IV posts before joining the job.

25
Interviews:

These are conducted to all qualified persons from written tests conducted

by the boards by adopting statutory requirements.

Appointment Order:

After selection appointment order will be sent to selected candidates

through head of the department.

Placement:

Before placing an employee in a particular position and bond of three

years is taken from that particular person.

Induction:

Directly placed on job finding for two three days will be given as on job

training.

Probation:

Probation period in VPT is 2 Years and can be expended if performance

of the employee is not satisfied.

ii. Human Resource Development:

"Human Resource Development means, it is a learning experience which

are organized for a specific time and designed to bring about the possibility of

behavioral change."

26
 (A) Human Resource Development Policy:

 To widen the workers understanding of his environment and the value of

contribution with the total product of organization.

 To expose the workers to technological advance and to improve his skills.

 To replace the traditional non-productive ideas from his mind with a

scientific approach and during the outlook by changing his attitude in

order to improve his knowledge.

(B) Structure and Functions of HRD Department:

HRD center is headed fey a Director, who is assisted by 3 Assistant

Directors and other specialists and various and "respective areas to look after

and organize various training programs.

Director

Asst. Director Asst. Director Minister Staff Asst. Director

Functions:

To expose the workers towards technology and to improve their skills. To

replace the traditional non-productive ideas from their mind with the scientific

approach in order to improve their knowledge.

Implementations:

 To prepare monthly calendar on the basis of yearly calendar prepaid.

 Inviting nomination from concern department.

27
  Intimation factually regarding training program schedules as and after

required arranging conference on and finally obtained feedback.

(C) Methods of assessment of Training needs:

Training is given to individuals who are in need. Training is given to individuals;

 When there is introduction of auto-machine.

 For the expansion of the business.

 So as to improve the performance of the individuals.

(D) Training methods used in the organization:

There-are several methods used in the organization like library, audio

visual ads and orientation films.

Library: About 400 technical books are available for reference.

Audio visual aids : Slide projectors overhead projector, automatic slide

projector are available.

Orientation: This is to cover all employees who have similar skills.

Films : About 5u films covering technical areas such as first aid, fire

fighting's and safety equipment is directed to enrich knowledge to workers, in

Visakhapatnam port trust group contributions is more than individual contribution

so that HRD managers should inculcate a sense of responsibility and

belongingness.

(E) Organization and Implementation of Development Programs

Visakhapatnam Port Trust has introduced a new concept that if any

individual want to develop then he can select the Program, then the organization

28
he can select the program, then the organization will permit the individual. There

is also Trainer's Training Program and Internal Training Program.

Categories of Training Programs :

The main categories of Training Programs in Visakhapatnam Port Trust

are Apprentice Training and In Service Training.

Apprentice Training:

The different types of schemes are as follows:

 Apprentice Scheme.

 Marine Apprentice.

In service Training:

The different types of service training course are as follows.

 Orientation course

 Basic course

 Advance course

 Refresher course

 Special course

29
(F) Procedure for evaluation of Training Programmes

Effectiveness:

Visakhapatnam Port Trust conducts two types of evaluation Programmes.

 Pre-training evaluation.

 Post-training evaluation.

Pre-training evaluation:

Before the employee attends Programme, the organization will give the

assessment form to evaluate the individual of his needs. By evaluating this, the

organization will know what the training programmes the individual requires ape.

Post-training evaluation

After completion of training programme, the individual is given a feed back

form to assess the importance of Training programme. Even the trainer is given

the feed back form to evaluate the satisfactory level of training programmes.

30
Administration of Apprentice Act. 1961:

There are various training programmes for Apprentices;

■ Graduate apprentices

■ Technical apprentices

■ Post diploma apprentices.

A GRADUATE APPRENTICES

I. Mechanical 1 Year 40

II. Electrical 1 Year 32

III. Electronics 1 Year 16

IV. Instrumentation 1 Year 16

V. Sandwich (Mechanical) 06 Months 10

VI. Computer Application 1 Year 10

B. TECHNICIAN APPRENTICES

I. Mechanical 1 Year 76

II. Electrical 1 Year 44

III. Electronics 1 Year 32

IV. Instrumentation 1 Year 16

31
POST DIPLOMA APPRENTICES

!. Computer application - 1 Year 02

II. Welding technology ; 1 Year 03

III. Plant maintenance and engineering 1 Year 02

D. MARINE FITTER TRAINEE 06 Months 12

E. VOCATIONAL TRAINEES 01 Month 23

F. ACT APPRENTICES 3/2/1 Year 99

32
(H) Statistics on various Training Programmes conducted by the

organization for different categories of employees for the last one year

There are total of 77 training programmes conducted by HRD Centre in

Visakhapatnam Port Trust in 2007-08. A few of them are listed as follows:-

s. TITLE OF THE DUR- DURING LEVEL OF DEPT REMARKS

NO PROGRAMME ATION THE PARTICIPANTS CODE
MONTH
1. Refresher 02 Jul LAB Technicians 01 01
course for LAB days
technician
2. Refresher 02 Aug Radiographers 01 01
course for days
Radiographers
3. Refresher 01 day Sep Ward boys and 01 01
course for Ward dressers
boys and
dressers
4. Organization 02 Every 03 Officers/ 02 All Depts
behaviour and days months Supervisors/
managerial Ministerial staff
skills
5. Communication, 02 Twice in -do- 02 All Depts
inter personal days year
and skills
6. Customer 1 day Once in a -do- 02 All Depts.
relationship year
management
7. Problem solving 1 day Once in a -do- 02 All depts.
and decision year
making
8. Secretarial skills 2 days Once in a PA/Stenographers 02 02
year
9. Records 01 day Every six Officers/ 02 All depts
management months Supervisors/
Ministerial staff
10. Hindi 01 day Every Ministerial staff 02 All depts..
awareness month

01-Medical 02-Admini 03-Accounts 04-Research&planning 05-Mtrl

06-Engg 07-Mech 08-Marine

33
(I) Performance Appraisal:

It is a method of evaluating the behavior of employees in the work spot;

normally including both the quantitative and qualitative aspects of job

performance.

(i) Study of Appraisal forms for Managerial and Non-managerial

Employees-

Managerial employees:

For class-1 and class-2 : The concerned officer must give a brief account of the

individual's performance .achievement and work done during last year. Apart

from this, the reporting officer's report is also is necessary.

The reporting officer is Head of Department, and the receiving officer is

Deputy Chairman and final authority is Chairman.

Non- Managerial Employees:

For class-3 : It will be carried out by reporting officer who is the section officer.

Reviewing officer is Deputy Officer in-charge.

For class-4 : No report in respect of their performance. It is assessed by trade

tests.

Uses of performance Appraisal:

 Making administrative decisions involving pay rise, promotion,

 Providing employers with feed back concerning strength and

weakness on job.

 Identification procedures and technology for hiring promoting employees

who perform work well.

34
Administration and Problems:

Administration: There will given confidential reports which has to be filled by

superior officers and they will be bench marks.

For class-land class-2 : Chairman.

For class-3 and class-4 : Head of Department.

Problems: The major problem of performance appraisal is, if the Individual is not

appraised for his performance or if the individual is informed of his performance,

because performance appraisal plays a major role during the time of promotions.

(J) Career Policy:

The organization encourages employees for their career. The employee's

children are given subsidies in their fees and also scholarships for higher

education.

(K) Promotions and Transfers:

Promotion Policy: It is vertical in rank and responsibility. In Visakhapatnam Port

Trust promotions are based on Seniority. Merit also plays a major role. There are

departmental promotions whenever vacancies arise.

Transfers: A transfer is lateral movement of an employee for a job where his

salary status and responsibility remain same. In Visakhapatnam Port trust, they

are only internal transfers, which are made from one department to another. No

individual is transferred from one major port to another major port.

35
Wage and Salary Administrating:

(a) Methods of job classification in the organization:

JOB CLASSIFICATION:

A grouping of jobs on some specified basis such as kind of.work or pay. In

Visakhapatnam Port Trust, job classifications of posts are as Class-1, Class-2,

Class-3, and Class-4 is done basing on the pay structure.

The employees are classified into 4 classes.

Class-1: Senior management.

Class-2: Middle and lower management.

Class-3: Supervisory, clerical and office staff. Skill employees

Class-4: Unskilled and semi-skilled workers.

(b) Wage determination factors of the organization:

Wages in the organization are determined through Collective Bargaining.

All the 5 federations along with the management discuss /and come to a

decision, "there will be members from the Federations and members from

Government. The meeting will be held once in a year. They undergo several

sessions of meeting.

36
(c) Present Wage Structure of the Organization:

Revised pay scales, which are effective from w.e.f l/i/97.

BASIC INCREMENT REACHING INCREMENT REACHING

PAY SCALE SCALE

3700 60 4180 75 5830(30)

3840 80 4320 100 6720(30)

3900 90 4260 100 6860(30)

4000 100 4800 115 7330(30)

4160 115 5195 125 7820(30)

4300 120 5260 130 8120(30)

4640 140 5760 170 9500(30)

5000 150 5450 200 10850(30)

5500 200 6100 220 11380(27)

6170 230 7320 245 11975(24)

(d) Wage and Salary components:

The components of wages for employees in Visakhapatnam Port Trust

are Basic pay, Dearness allowance, and Transport subsidy, Port City allowance,

over time, piece rate, holiday wage, children education allowance and other

perks

37
PAY SLIPS - CURRENT MONTH

Basic From Date CL EL LWP NW HW OL CL LWP LHP OL

#
8,74,000/- 1-4-2007 1-4- 0 0 0 000 000 000 000 000 0 0 0 0
0.00 2006
0.00
Sp.Pay Fes. Adv Piece Rate Basic Pay D.A. Transport Allow. Washing O.T. I.T.
Allow. Refund
0.00 0.00 0.00 874000/- 5078/- 180/- 0.00 0.00 0.00
Night 0.00 Conveyance N.P.A. Hard Duty Unclean . Type/Stitch Pay all MR Bill Other Eng |
0.00 0.00 0.00 0.00 o.oo Adj. 0.00 0.00 /
0.00
HRA Tution Fees Certificate F.PI. inc Holiday Oep. Allow 0.00 CCA 200 Other Eng Total
1529.50 0.00 0.00 0.00 Wage 0.00 Eng
0.00 15725.50
F.SVF 20 Qrt Rent 0.00 Conserv P.F Subs Travel Adv V.P.F 6000/- P.F Adv Festival PC Ativ^ Net
0.00 525/- , 0.00 0.00 -. Adv 700/- 0.00 Amount
4609.17
Elec IT. 0.00 Court Att. Prof. Tax Coop Launch Pass MBA 0.00 MCA 0.00 Cycle Adv
Charge 0.00 150/- Sub 0.00 0.0.0
0.00 3613.33
Poor 0.00 CJubs 0I00 Med. LIC 0.00 Ace Ins QRF $0/- Postal Ins HBA Fund Misc 60/-
Charge 0.00 0.00 0.00
0.00
0.00 o;oo Union 0.00 APCO Adv SP/FL Adv Cocip Str Fan/ Sal Adj Total SBI
0.00 0.00 0.»0 Penalty 0.00 11118.33 2,50,2^9/-
--------^--------l 0.00 |

38
(e) Policy and Procedure on DA fixation:

DA is fixed basing on AIPI-ALL INDIA PRICE INDEX once in a quarter it will be

reviewed. DA points will increase due to inflation. It is fixed basing on the principle to

meet the basic needs of the people.

(f) Payment methods and Deductions:

Wages are distributed through the banks. Wages of different categories are made every

month. Wages are given on last day of every month for class-1 and class-2 to 4th of

every month to class-3 and class and class 4 employees..

(g) Increments-Administration and Problems:

It is mentioned as a part of pay scale. There will be an increment with service and

ranges depending upon the pay scale. The increment will be given once in a year. In

Visakhapatnam Port Trust, every employee is provided with productivity linked bonus or

reward.

Problems: In Visakhapatnam Port Trust .increments related problems are very minor.

Problems arise only when there is dissatisfaction among the employees. For ex: if an

individual's name is listed in indiscipline list then he will not get his increment/Generally

every individual gets his increment for every 12 months of his service. But if an

individual's name is listed in reduced list for his misconduct or indiscipline then he will

get his increment only according to name enrolled in reduced list.

BONUS:
Visakhapatnam Port Trust are paying 20% of bonus which is more than that of bonus
that is mentioned under the Payment of bonus 1965(8.33%)

iv. INDUSTRIAL RELATIONS

39
1. Discipline:

Discipline can be referred as a force that prompts individuals or groups to

observe rules, regulations and procedure, which are deemed to be necessary for the

effective function of the organization. Discipline is very important in any organization it

plays a very vital role in maintaining good industrial relations and public relations in the

organization and it also helps in organizational growth and improves the work culture. In

the Visakhapatnam Port Trust, the discipline is being regulated by Central Civil

services and Classification control and Appeal regulations 1968.

The mostly observed misconducts are as follows:

 Misbehavior

 Late coming

 Negligence

 Alcoholism

 Misuse of allowances

 Financial misconducts

In Visakhapatnam Port Trust they follow the regulations of Major port Act 1963 and

Indian ports Act 1908 they do not have any separate Standing orders.

2. Co-Operation and Consultation in Visakhapatnam Port Trust:

In Visakhapatnam Port Trust there are mainly eight Bi-Parted committees. These

committees represent both the management and Trade union side with the help of

these committees the management safeguards the safety, health and welfare measures
40
of the employees. The functions of these committees are to wider the workers

understanding the work environment and the environment in the organization and the

value of contribution to the total product of the organization and to expose the workers

to technological and to improve his skills to replace the traditional non productive ideas

from his mind with the scientific approach and during the outlook by changing his

attitude in order to improve his knowledge and to provide better security and welfare

facilities to the employees .

The following are the Bi-Parted committees exist in the organization.

 Canteen management Committee

 Port quarters Committee

 Welfare committee

 Safety Committee

 V.P.E welfare fund Advisory Committee.

 Training and development committee

(a) Canteen management Committee:

In the organization there are 12 canteens, these management committees

monitors the functioning of the canteens they meets once in a month.

(b) Port quarters Committee:

In Visakhapatnam Port Trust this committee is deals with the allotment and

maintenance of quarters of port it meets once in a month and discuses about the

matters relating to the quarters.

41
(c) Welfare committee:

This deals with the welfare facilities of the employees. It monitors whether the

welfare facilities provided by the Visakhapatnam Port Trust are properly utilized or not if

any defects are their then it gives suggestions to the management to overcome those

defects at early it used to meet once in a month but now it was meeting once in 3

months.

(d) Safety Committee:

This deals with the safety facilities of the employees it monitors whether the

safety facilities provided by the Visakhapatnam Port Trust are better or not if any

defects are their then it gives suggestions to the management to overcome those

defects it meets once in a month.

(e) V.P.E Welfare Fund Advisory Committee:

In Visakhapatnam Port Trust this committee is deals with the allotment of merit

scholarships to the suitable children of the Employees of port it meets once in a month

and discuses about the matters relating to this.

(f) Training and development committee :

This committee helps the employee to wider the workers understanding the work

environment and the environment in the organization and the value of contribution to the

total product of the organization and to expose the workers to technological and to

improve his skills it meets once in three months.

42
(g) Port working committee:

In Visakhapatnam Port Trust, this committee deals with the work culture and

functioning activities of the port. It meets once in a month and discuss about the

concerned matters. This* is a tripartite committee. The Labour Trustees, Trade

Association and Management Representatives are comprised in

(h) Environmental Management Committee:

This committee deals with the Environment, Safety and Health Measures it

meets once in a month and discuss about the related matters. The members of this are,

professionals in the specific field, basically outsiders only. The Role of HRM in these

committees are: To direct, monitor and control over the total activities of these

committees.

4 Trade Unions:

Trade Unions play vital role in industrial relations of the organizations. In VPT,

there are total eight trade unions, out of them four are recognized they are as follows:

 Harbors and Workers Union.

 Visakhapatnam Port union.

 National Port trust Employees union.

 Port and Dock Workers union.

43
 The following are Un-Recognized Trade Unions.

 Visakhapatnam Port Shramik Panchayat.

 United Port and Dock Employees union.

 Visakhapatnam port Shore and on Board workers union.

 Janata Port and Dock Employees union.

Recognition procedure: In Visakhapatnam Port Trust, they follow Check-off system.

Functions : In Visakhapatnam Port Trust, the main function of the trade unions are to

maintain service conditions and welfare measures of the employees. They act as

representatives of the employees and discuss the problems of the employees with the

Management. They strive for the betterment of the employees as well as the

organization.

Collective Bargaining: In Visakhapatnam Port Trust, collecting Bargaining process

level at decision making level. Most of the collective bargaining takes place at the time

of Wage Board Negotiation Committees. The demands suitable to be justified are

approved and are implemented.

Role of HRM: . It conducts meetings and records minutes of the meetings and

statements of the both management representatives and employee representatives. It

monitors, controls, and directs the Collective Bargaining process.

Dispute Settlement: The disputes will be raised before Assistant Labour

Commissioner. He will give the notice to both the parties. The Assistant Labour

Commissioner will hold conciliation meeting. If the dispute is settled, it will be in the

44
written agreement or otherwise, the dispute will be sent to the Ministry of Labour for

examination and settlement.

V. MAINTENANCE:

1. Employees Welfare and Social Security:

(a) Welfare policy:

The organization provides all the welfare provisions according to Factories Act-

1948, it "provides all the provisions that are mentioned from Sec-42 to sec -49,

(b) Administration:

The organization provides all the welfare facilities that are mentioned in the

Factories act 1948, from sec-42 to sec-49 , but it does not provide creches which is

mentioned in sec-48 of Factories, Act 1948.

> Canteen Sec-46:

Canteen is well established with sufficient equipment and fully pledged and well

hygienic conditions are provided at walk able distance for all various work spots in

O.H.C (ore handling complex). Canteen has been run by canteen management and

consisting of

45
(i) President nominated by management.

(ii) Secretary of the committee will be elected among the employees.

(iii) Treasurer appointed by management and executive -members among the

employees

Rest Rooms & Lunch Rooms Sec-47:

Rest rooms and Lunch rooms are equipped with sufficient chairs and tables,

lights and fans. There are 15 of rest rooms and lunch rooms fully equipped have been

provided in various work spots for various cadres in O.H.C.

> First Ajd Sec-45:

A fully equipped first aid center with well trained personnel has been employed.

(c) Social Security Measures:

> Employee Provident Fund:

According to Provident Fund and Miscellaneous Act 1952, it is mandatory recovery and

the organization provides 6% of the basic pay.

> Employee Gratuity:

According to Payment of Gratuity act, the organization provides 15 days per

year. It provides Pay+ DA .It provides up to maximum. It should not exceed more than

that.

46
> Maternity Benefit:

According to Maternity benefit Act, the organization provides 135 days during the

time of pregnancy. A separate women cell is also provided and if there is any grievance

it can be settled there.

Housing facility:

S.NO. CATEGORY TYPE OF QUARTERS %of

OF provision
WORKER
I II III IV V VI Total

1. Class I - - - 9 44 5 58 31

2. Class II - - - 5 5 - 10 07

3. Class III - 540 112 1 1 - 654 21

4. Class IV 816 21 - - - - 837 47

TOTAL 816 561 112 15 50 5 1559 30

Note : In addition to 1559 quarters allotted to port personnel, 626 quarters were allotted

to CISF, 2 quarters were allotted to audit, welfare association, police, municipal

corporation, light houses, survey, dock safety, postal, port primary school and telecom.

Education:

School education is provided for children of Port employees and their

dependants at Port residential colonies. Schools are provided at Saiigramapuram and

47
Malkapuram up to 10th class. There is also functional Jr. College at Malkapuram, which

is called as Port Residential College.

Children Education Allowance

A scheme of education allowance for the children of Port employees and

reimbursement of tuition fees based on the pattern of government of India is also being

followed in Visakhapatnam Port Trust.

Recreation:

Clubs : Visakhapatnam Port Trust sports and cultural complex at Saligramapuram was

the main port and cultural center for port Employees.

Sports and Games : Visakhapatnam sports council organized and Indian Major Ports,

Basket Bal! and Kabbadi championship.

Cooperative Society and Games: Visakhapatnam Port Trust cooperative society Ltd.

(M-307) with membership of 7,500 employees and a share capital of Rs.136 crores,

carrying out its' functions satisfactorily.

Safety:

(a) Safety policy of the organization-

Visakhapatnam Port Trust is committed to safety of its employees who shall

adhere to working practices which ensures their own safety as well as that of the other

associated personnel and protection of environment.

(b) Safety Programmes:

48
 To obviate the accidents, necessary safety programmes are conducted

periodically to educate the employees.

Leave and Holiday wages:

(a) Leave Rules and Procedure:

Application for leave: Any application for leave or for extension of leave shall be made

in form-1 to the authority competent to grant leave.

Leave Account: A leave account shall be maintained in form-2. For each employee in

class-1 and class-2, service Financial Advisor is the Head of Department. For class-3 and

class-4, service Chief Account's officer is the Head of Department.

Verification of title of leave: No leave shall be granted to an employee until ^ report

regarding its admissibility has been obtained from the authority maintaining the account.

(b) Different types of leaves:

Earned Leave:

An employee shall be entitled to 30 days of earned leave in advance, in 2

installments of 15 days each in January and July of every calendar year.

Commuted Leave:

49
 Commuted leave not exceeding half the amount of half pay leave due may be

granted on medical certificate to an employee.

Casual Leave:

An employee is entitled of 12 casual leaves in a financial year.

Extra Ordinary Leave:

Extra ordinary leave may be granted to an employee when no other leave is

admissible, but the employee applies in writing for the grant of extra ordinary leave.

Maternity Leave:

A female employee with less than 2 children may be granted for maternity leave

by administrative authority to grant leave for the period of 135 days from the date of its

commencement.

Study Leave:

Study leave may be granted to an employee with due to regard to experience of

Board Services to enable him to undergo, in or out of India a special course of study

consisting of higher or specialized training in professional or technical subject. The

duration may be from 1 year to 5 years.

Sick Leave:

The authority competes to grant sick leave to class-4 and class-3 employees

whose duties involve handling of dangerous equipment, explosive material, poisonous

of drugs.

50
Leave not due:

Leave not due may be granted to an employee limited to a maximum of 360 days

during the entire service on submission of medical certificate.

Holidays:

Visakhapatnam Port Employees are provided with 16 Public holidays except

Sundays.

5. Time Office Management:

Administration of Attendance:

In Visakhapatnam Port Trust, separate attendance registers maintained for each

and every department. This system has been evolved because there is no centralized

recruitment system.

Shifts Management

General office timings is 9.30 to 4.30.

General shift (office side) - 7.30 to 4.30.

Saturday working hours- 9.30 to 1.30.

Except General shift there are 3 shifts;

Visakhapatnam Port Trust Railways : -

12.00(night) to 8.00AM.

8.00AM to 4.00 PM.

4.00PM to 12.00(night).

51
Shipping Timings:

6.00AM to 2.00PM

2.00PM to 10.00PM

10.00PM to 6.00AM.

Working hours and overtime:

Single overtime 4.30PM to 7.00AM.

Double overtime 7.00AM onwards.

The prescribed rules for overtime allowance are :-

Where scheduled -(a) For work beyond scheduled working hours

working hours are to 9 hours a day/ less than 48 hours a week-SOT
less than 8 hours. allowance,

(b) For work beyond 9 hours a day / 48 hours

a week - DOT allowance.

Where scheduled (a) For work beyond 8 hours and less than 48
working hours are 8 hours in a week-SOT allowance
hours and less than 12
hours. (b) For work beyond 9 hours a day/48 hours un a
week-DOT allowance.

Where scheduled (a) DOT allowance for 3 hours only,

working hours are12
hours. (b) For work beyond 12 hours DOT
allowance for each hour.

Note : Hours rate = (Basic + DA) / 240

For work on weekly day @ 1 >2 the daily rate + one compensatory off. if it is
of rest / on a festival / not possible to give C/off, shall be paid @ 2 !4 times
national holiday the daily rate for the employee entitled to pay weekly
day of rest / paid festival or national holiday. @ 1
M> times the daily rate for those not so entitled.

Note : Daily rate = (Basic + DA) /30

52
53
VI. Separation:

(a) Separation Policy of the organization :

On the day of separation of the individual from the organization, Chief Executive

and Deputy Chairman will honour the employee. The individual's family members are

also invited for the function.

(b) Voluntary Retirement Scheme :

Government has introduced a VRS with a view to reduce the manpower subject to

terms and conditions. An employee who completed 10. years service or 49 years of age is

eligible to VRS.

Terminal Benefits :

Balance of PF cash equivalent, earned leave, applicable gratuity, pension as per

rules in addition to one and half month exgratia (Pay +DA) is entitled and LTC facility is

settled. Originally, scheme was introduced in Visakhapatnam Port Trust in 1991-92 by

passing a resolution in its Board meeting dated 30-10-1992. Although VRS has gained

momentum slowly with yearly variation, it reached to the peak in the block year-2000-01.

The relevant statistics are furnished below:-

 The manpower of Ports as on 31 -3-92 is 11,021.

 The manpower of Ports as on 31-10-2001 is 5,991.

54
  During further extension of VRS-for 3 months i.e. 31-3-01 and 30-10-01 is 73.

Right Sizing:

This means when there is surplus manpower, then the manpower is reduced by the

organization. !n 1992, there were 11,000 employees but now in 2007 there are 5,000

employees. Decommissioning of age old crafts and closure / winding up of unnecessary

units have become an added advantage in reducing manpower.

VII. Human Resource information Systems:

(a) Application of computers in HRM functional areas:

Computers are introduced in Visakhapatnam Port Trust in 2001 .Generation of ID

cards are done through computers.

There are types of HRIS;

 Financial Management Systems-(FMS)

 Personnel Management Systems-(PMS).

 Material Management Systems-(MMS).

 Railway Operations Management.

 Marine Operations Management.

(b) Employee Data Bank:

Employee data blank stores the personal profile of the individual; it includes age,
sex and family details.
55
4.0 ANALYIS AND INTERPRETATION:

This project involved more observation and theoretical approach and very limited

scope and opportunity to any quantitative analysis. However, reviewing the company’s

overall policy functions, the interpretations are:

Visakhapatnam has brought automation with the recent development which is

evident that the manpower is reduced in the organization. In 1992, there were 11,000

employees but as of now are 4200 employees. Decommissioning of age old crafts and

closure / winding up of unnecessary units have become an added advantage in

reducing manpower.

Communication in Visakhapatnam Port Trust is very effective. There is

horizontal, vertical, lateral upward, downward communication. Communication is

through verbal and written, internet and Intranet facility is also available in

Visakhapatnam Port Trust. Postal and Facsimile communication is very predominant in

the organization. Media plays a major role in the organization-ex: Newspaper,

Television, Internet etc.

The employees in Visakhapatnam Port Trust are provided with all safety

equipment. But in spite of which sometimes accidents occur in the organization.

Accidents occur because while loading and unloading the goods if the sling of the crane

gets spoiled and becomes loose, then accidents may occur. If the employees do not

use the safety equipments that are provided to them by the organization, accidents may

occur and also even due to negligence and if the individual is in alcoholic state at the

work spot.

In Visakhapatnam Port Trust, they follow both the open door policy and step

Ladder systems. Mostly, they use step Ladder system for Grievance Redressal.

56
 5.0 SUMMARY

Visakhapatnam Port Trust is committed to provide prompt, efficient and safe

services at optimum cost for ensuring quick turnaround of sea, rail, road, borne cargo

and its carriers, maintaining total transparency in all the transactions and shall

continually strive to meet the quality expectations of Port users.

Visakhapatnam Port Trust, is committed to minimize the adverse impact of its

operations on the environment. Towards its end it shall endeavor to;

 Maintain and operate Port facilities to comply with applicable environmental law

rules and statutory regulations.

 Continual improvement of environmental performance by a system of review.

 Set sound environmental objectives and targets.

Visakhapatnam Port Trust is committed in achieving continual improvement in health

and safety of its employees and associated Personnel in all Port operations

including Cargo handling, road and rail transport by following safe working practices,

and complying with applicable legislations

57
 Visakhapatnam Port Trust is the first Indian Major Port and on of the very few

ports of South East Asian countries to receive this prestigious ISQ-14001 Certificate, it

is understood that even those South Asia Ports, which received the award have been

accredited only for one or two terminals but not for the entire garnet of occupations.

A massive tree plantation, programmed in all targeted areas, was taken up and

about 3.16 lakhs, saplings of various species with 95% survival races have been

planted in and around the Port area.

Awards & Achievements:

 The only Indian port to have three international certifications.

ISO 9001 – Quality Management System.
ISO 14001 – Environmental Management System.
OHSAS 18001 - Occupational Health & Safety Management

 An ISPS compliant Port.

 Ranked FIRST among the Indian Major Ports in terms of annual cargo
throughput, for six consecutive financial years. The cargo throughput
handled in 2005-06 was 55.80 million tonnes.

 Complimented by the Ministry ofShipping, Government of India as

the BRIGHTEST JEWEL among all th e major ports of India

 NATIONAL SAFETY AWARD for outstanding performance in industrial

safety for five consecutive years.
Winners for the year 2002
Runner-up for years 2003, 2001, 2000 and 1999.

 GREENTECH SILVER AWARD for safety for the year 2007

 GREENTECH GOLD AWARD for Environment Management for the year

2007

58
 GREENTECH ENVIRONMENT EXCELLENTAWARD Greentech gold
environment excellent award 2009- among the service sectors

5.2 FINDINGS

 The healthcare system is inadequate as it has only one owned 124 bed hospital.

 Canteen facilities need to be improved as there is scope of hygiene and more

cleanliness needs to be maintained.

 The administrative buildings do not meet the workplace standards and the office

premise also needs to be given a facelift.

 The job opening still follows the old traditional forms of filling and returning back

to the office for application process.

 While interaction with the employees, majority of the employees say that they
have not experienced training program in a year.

59
5.3 SUGGESTIONS:

 Visakhapatnam Port Trust should look at tie up with major corporate

healthcare company in the city for better and efficient medical facilities

available to its employees for major hospitals available in the country.

 Canteen facilities need to be improved as there is scope of hygiene and

more cleanliness needs to be maintained.

 A quarterly review needs to be conducted and a cleaning company should

be given contract for overall maintenance of its administrative buildings to

make the environment more pleasurable to work for employees and

friendly atmosphere for customers visiting the place.

 Upcoming job opening should be listed on the website and should have

corresponding hyperlink for the necessary forms to apply directly by taking

print out.

60
5.4 CONCLUSION

Visakhapatnam Port Trust is one of the major ports in India. It is a major Public sector

organization, which is playing a vital role in promoting and expanding country's

foreign trade and economic development. The organisation has been

constructed with a clear vision - to be the most preferred Port in South Asia offering

services of global standards. It has been putting its major effort in fulfilling its mission -

to be a major partner in meeting the logistics requirements of the imports and exports of

the region. The objectives are achieved by its strenuous effort of the

organisation's manpower. Training methods used in the organization adds a

predominant role in upgrading the skills of the individuals so as to prove their proficiency

and a major aspect in proving Visakhapatnam Port Trust as one among the 12 major

ports. Visakhapatnam Port Trust is an ISO certified organisation. It is packed with many

Quality Policies in its records.

Andhra Pradesh Government has presented a certificate to this port as

" Best Green Belt Development "

Thus, Visakhapatnam Port Trust is the leading organization in not only serving

the commercial requirements of the country but also promoting industrialization

throughout the world.

61
BIBLOGRAPHY

The study has taken valuable inputs from work of eminent authors and contains

copyright image from websites.

Following are the details of various information sources:

 Human Resource & Personnel Management by K Aswathappa from

publisher house of Tata McGraw Hill.

 Personal & Industrial relations by John Binner from Macmillan

 Principles of Labour Welfare by M.V. Moorthy

 Extract of information and images from websites:

www.vbsvizag.com

www.vizagport.com

www.wikipedia.org

62