Description
The documentation about comparison of HR(human resources) policies in public and private sector.It takes BPCL(bharat petroleum) and Nestle as the examples
Comparison between HR Policies of Public & Private Sector
BPCL & Nestle
Comparison between HR Policies of Public & Private Sector
INDEX
S. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Introduction Objective of the Study Methodology HR policies Overview Recruitment Training Work- life Balance Employee Development & Growth Remuneration Appraisal system Employess Benefits Dealing with people Employee Satisfaction Conclusions References
TOPIC
PAGE NO.
3 4 4 5 6 8 9 10 11 12 14 15 16 17 18
Page 2 of 18
Comparison between HR Policies of Public & Private Sector
Introduction
BPCL
BPCL has always put “People above Oil” and attributes all its achievements to its people. It is in the organization?s interests to look after their people, enable their growth and provide support in the best possible way. Their employee strength is around 14000 spread across the various dimensions of India. In terms of professional development, well-established central and regional learning centers conduct programs for skill upgradation that are precise and linked to business priorities, enhancing employees? ability to drive change. Attracting and retaining employees is a key challenge in this highly competitive environment. BPCL has geared up to this challenge and is striving to make our work environment more informal and approachable and has also started a mentoring process. A newly introduced initiative that has met with resounding success is the face-to–face counseling for the employees and their families. BPCL is also working towards promoting diversity in the workforce. They recognize that there is much to do in this area, but with the provision of facilities such as crèches for mothers, set up of sexual harassment committees, etc. they are moving in a positive direction. They also encourage their people to pursue their passions. In a country in which sports are often neglected, BPCL has taken it upon itself to encourage promising sportspersons by providing them employment with the company. Some of India?s best sportspersons such as Saina Nehwal (Badminton), Anup Shridhar (Chess), Devendra Joshi (Billiards) amongst many others are BPCL employees.
NESTLE
Nestlé is a large international food manufacturer with over 250,000 employees worldwide. Nestlé has set high standards in corporate principles and its relationship with all of its stakeholders. Nestle has such a large scale of workers and must ensure they have a good management system to maintain the employment relationship. The fact that Nestlé is more people and product than systems oriented is reflected in the way HR is functioning and is organized. Processes and systems as well as professional HR tools are there to support HR management but never to the detriment of the human dimension. The human perspective is present at all times and under all circumstances. HR function indeeds provide flawless administrative support; its main role is to add value to the business and to play a proactive role in every situation where HR action is required. It should be kept in mind that the HR contribution aims in the first place at optimizing the overall company performance through improving people performance. With the evidence that the human capital is of increasing importance, HR plays indeed a pivotal role in the
Page 3 of 18
Comparison between HR Policies of Public & Private Sector
conception and implementation of the people strategies that impact financial results and the organization?s overall reputation and effectiveness.
Objective of the Study
Following are the few objectives of the study: ? ? ? ? To understand the contents of the HR Policies of an organization To study the HR policies of a pubic sector organization To study the HR policies of private sector organization To perform a comparative analysis and find out the difference between a public and private sector organization
Methodology
For the purpose of the study we met Mr. S.Mohan, Director, HR of BPCL and Mr. T. Somnath, Director, Talent Management, BPCL. We interviewed both the persons. They gave us valuable insights about the HR policies followed in BPCL. Since, we could not get the contact for Nestle, we used web references to get the information about the Nestle Hr Policies. After receiving the information from both the organizations, we tried to understand and perform a comparative analysis of the HR policies of the two firms.
Page 4 of 18
Comparison between HR Policies of Public & Private Sector
HR Policy: Overview
BPCL
For Bharat Petroleum, commitment of its employees is a critical resource. Fully realizing that only a satisfied employee will put his best foot forward with the customers; Bharat Petroleum has taken many steps to make the organization a „Great Place to Work’. Bharat Petroleum fosters effective value-based HR processes for development of people and their organizational capabilities with a view to provide them with a competitive edge and also to realize their personal vision in tandem with the corporate vision. The thrust areas include: ? Performance Management which links business goals with individual performance goals. ? Recognizing competencies and capabilities of the staff through Competency Modeling to help identify and place the right person in the right job. ? Identifying competency gaps and bridging such gaps through appropriate training and developmental programmes. ? Multi-skilling to encourage employees to take up new initiatives in the areas of Enhanced Fuel Proposition, Add-on Stores, One Stop Truck Shops, Grocery and Fast Food Stores.
NESTLE
The Nestlé Management and Leadership Principles describes the management style and the corporate values of the Nestlé Group, specifically in the area of interpersonal relations. Their respect calls for specific attitudes which deserve to be outlined in the present policy: ? “A prerequisite for dealing with people is respect and trust. There can be no room for intolerance, harassment or discrimination of any kind as they are the expression of an elementary lack of respect.” This principle suffers no exception and is to be applied at all levels and under all circumstances. ? Transparency and honesty in dealing with people are a sine qua non for efficient communication. Based on facts and on a sincere dialogue, such transparency is the only solid basis for boosting continuous improvement. ? It is complemented by open communication with the purpose of sharing competencies and boosting creativity. It is particularly relevant in a flat organization to convey systematically all information to those who need it to do their work properly. ? Every employee has the right to an open conversation with superiors or colleagues. ? The willingness to cooperate and to help others is a required basis for assessing potential candidates in view of a promotion. ? In case of discord between an employee and her/his superior or another employee, the possibility is offered for a fair hearing. The HR staff provides assistance to ensure that the disharmony is dealt with impartially and that each party has the opportunity to explain her/his viewpoint regardless of hierarchical position.
Page 5 of 18
Comparison between HR Policies of Public & Private Sector
Recruitment
BPCL
? Recruitment at BPCL takes place at a junior level. Most recruitments at BPCL are at entry level. The company believes in building its human potential rather than buying it from the market. Until now it was seen as a lifetime job and people worked their way up through the management. They believe in increasing sales force from the existing employee base by retraining and redeployment of management staff. Selection within the organization is done by matching the job profile and the appraisal. Scope for promotion is less at BPCL. The average age profile at BPCL is between 35 and 40 years. A promotion can only be expected after three years. There is a system of job-rotation. Wide array of jobs are available to the entry level from finance to retail to logistics. To occupy a responsible position a person needs to have a work experience in at least three departments. It is the duty of the HR manager to pick up the best candidates and not many candidates. Engineers are recruited generally from the IIT?s, NIT?s whereas MBA?s are recruited from XLRI and IIM?s.
? ? ? ? ? ? ?
NESTLE
The long-term success of the Company depends on its capacity to attract, retain and develop employees able to ensure its growth on a continuing basis. Nestlé hires staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company. Therefore the potential for professional development is an essential standard for recruitment. ? Each new member joining Nestlé is to become a participant in developing a sustainable quality culture which implies a commitment to the organization, a sense for continuous improvement and leaves no place for complacency. ? Moreover, for managerial positions specific leadership qualities and business acumen are required. ? Contacts with universities, attendance at recruitment events and other contacts are undertaken so as to ensure good visibility of the Company vis-à-vis relevant recruitment sources. ? Even when promoting employees intensively from within the organization, it is the role of management and HR to keep an eye on valuable candidates from outside and to benchmark internal skills with external offers. ? Whilst adequate recruitment tools may improve the hiring process, the decision to hire a candidate remains in the hands of the responsible manager supported by the HR
Page 6 of 18
Comparison between HR Policies of Public & Private Sector
staff. Under no circumstances should the decision to hire or not to hire be left in the hands of an outside consultant or expert. Relevant skills and experience are considered in employing a person. No consideration is given to a candidate?s origin, nationality, religion, race, gender or age. It is important to hire the right person as it is to integrate newcomers in the organization so that their skills and behavior can merge smoothly with the company culture. Whereas from new employees they expect to respect company?s culture, it is accordingly required from all employees to show an open mind towards new ideas and proposals coming from outside.
?
?
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Comparison between HR Policies of Public & Private Sector
Training
BPCL NESTLE
Once people join they are bought on same platform as the other employees. About 3 weeks classroom training is provided and then 2 months field training is given before the final assignment. This is done so that both the parties know what is expected from the employee and what can be achieved by the employee.
The responsibility of people development lies with three partners: the employee, her/his manager, and the human resources manager. Various processes and methods for developing employees are applied, such as: - On-the-job training - Classroom training - e-learning - Job rotation - Performance management - International assignments - Coaching - Project assignments
Motivation at BPCL
•The employees can be best motivated by their bosses. The duty on each employee is to match the aspirations of their subordinates to the projects allotted to them. •Another path followed to motivate their employees is by giving freedom and a perfect ambience for the overall development of the employee. The decentralization of authority has fostered the cooperative work culture and raised the employee morale.
Motivation at NESTLE
•Nestle believes that only highly motivated employees lead to satisfied customers, hence to business success. Therefore, Nestle conducts periodic employee motivation surveys and creates action plans according to the results in order to constantly improve the motivation level and sustain it above the national norm in each country.
Page 8 of 18
Comparison between HR Policies of Public & Private Sector
WORK LIFE BALANCE
BPCL
At BPCL, they try to keep the employees happy by helping them to maintain their work life balance.
?
?
?
Family Wellbeing It is a known fact that family is one of the most closely knit system which needs to be enriched to cope with the stresses and strain of life. Thus when an employee comes with a problem, joint counseling sessions are also conducted including his family members to ensure resolving of problems amicably. Grooming Children As Caretakers Of Next Generation Children are tomorrow?s future, and when it comes to the employee?s children, they ensure development through various activities like Career guidance, aptitude tests, etc Parenting During training or workshops, one of the main topics covered is parenting. This is important because in today?s competitive world it is very difficult to manage both work and house Thus to ensure care of children, parenting sessions are conducted about emotional problems and problems encountered by children at different stages, puberty issues, etc.
NESTLE
At Nestlé it is believed that the employee?s private and professional life should have a good balance. Not only because it reinforces employee?s satisfaction, loyalty and enhances productivity but also because it positively reflects on the Company?s reputation. It helps attracting and retaining people and reconciles economical imperatives with well being. Nestlé encourages flexible working conditions whenever possible and encourages its employees to have interests and motivations outside work.
Page 9 of 18
Comparison between HR Policies of Public & Private Sector
Employee Development and Growth
BPCL
They have set up a „Development Centre? for the employees. Through the „Development Centre?, competencies and developmental potential of the participants are assessed by trained professionals using a diagnostic process. Annually they conduct 3-day workshops for pre-retirement colleagues so that they are well advised before entering retirement life. The workshops are conducted by external experts and cover topics such as sound financial management and preventive health maintenance. BPCL invests in training and development to enable all employees to perform to the best of their ability and to support their career progression. They work hard to attract and retain the best and the brightest people at BPCL and to help them develop their potential. The Bharat Petroleum Learning Centre at Mumbai and the Regional Training Centres are used for imparting training on new initiatives and for skill upgradation of employees. They do not discriminate in respect of hiring, remuneration, access to training, termination or retirement, based on race, caste, national origin, religion, disability, gender, union membership, political affiliation and age. The IDEAS is a platform provided to the BPCL employees to share their ideas. The submitted ideas are evaluated by the IIM-B professionals for they practicality and sustainability. The best idea is then rewarded and implemented. This is a very powerful tool for innovation.
NESTLE
Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by Nestlé. Training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and it is crucial to make each one progress in her/his position. When formal training programs are organised they should be purpose oriented and designed to improve relevant skills and competencies. Adequate training programs are developed at the level of each operating company capitalizing on the availability of local, regional or global resources of the Group. It is the responsibility of HR staff to assist the management in the elaboration of training programs. Great importance is attached to programs enhancing the language skills of the employees. Training programs organised at the International Training Centre Rive-Reine aim at developing and sharing best practices of the various management disciplines practised in the Group. They also strive to strengthen corporate cohesion as well as to promote networking throughout the Group. It is necessary to make optimal use of e-learning programs as a complement to or a substitute for formal training programs. According to needs they should be made available at shop floor level and enlarge the access to training.
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Comparison between HR Policies of Public & Private Sector
Remuneration
BPCL
At BPCL, taking care of employees? intellectual and growth needs and the promotion of a cohesive work culture is important. Regular performance appraisals reward strong performance, identify training needs and help people set objectives in terms of career progression and performance targets that are of mutual benefit to them and the company. With a view to differentiate performance and reward high performers, they introduced a Performance Related Incentive Scheme in 200304. Since then, quarterly career development reviews are conducted for all employees apart from the year end performance appraisal. Every employee has the freedom to complain regarding various issues like home, promotion policies, subordinates, boss etc to the higher authorities.
NESTLE
Nestlé favours competitive, stimulating and fair remuneration structures offering an overall competitive and attractive compensation package. Remuneration includes salary, any variable part of remuneration as well as social, pension and other benefits. Nestlé?s policy is to strive to position it self as an employer offering remuneration levels above the average of the relevant benchmark. Nestlé reviews regularly its competitive position with other companies so as to keep in line with the market trends. However, the evolution of remuneration is in the first instance determined by the capacity of the Company to improve its productivity. Wage and salary structures should be kept simple and avoid unnecessary complexity so as to provide effective compensation and reward. Remuneration structures specifically facilitates the implementation of flat organizational structures and be flexible so as to be able to adapt to the evolution of the market conditions. It is the responsibility of each manager to propose, within the framework of the company policy, the remuneration of her/his employees, taking into account the local market, individual performance, skills and potential for development. It is also the responsibility of each manager to communicate properly, clearly and with sufficient transparency, the individual remuneration of each staff member taking into account her/his professional performance and her/his specific responsibilities. The quality of communication in these matters is an essential part of the dialogue that each manager will have with her/his employees on remuneration matters. It is realized that, however important remuneration is for each employee, it is not remuneration alone that will stimulate the motivation of the staff. The HR management sees to it that the implementation of the remuneration policy is fair throughout the organization and that its spirit is duly reflected.
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Comparison between HR Policies of Public & Private Sector
Appraisal system
BPCL
Each employee is continuously evaluated on the basis of his/her performance. The basic evaluation is by the measurement of the outputs given by him. In case of a problem the manager along with his sub-ordinate can sit and track down the root cause of the problem in order to eliminate it. Appropriate solutions are developed and the result is seen in the next appraisal (after a period of 6 months) ? Feedback system is also used. ? Performance appraisal systems are in place in the company. ? 360 degree mechanism approach is adopted by the company. ? They have now started following a fast track promotion policy wherein the min. no of years of experience is brought down from 5 to 3 years. This has been done in mind specifically keeping the younger generation and their quick job changes. This is done with a view to retain the talent. The categories are from A- K (Lower most to Chairman)
NESTLE
Each employee is in charge of her/his own professional development. However, the Company endeavors to offer the opportunity to progress for those having the determination and the potential to develop their capabilities. Such opportunities are taken into account and the potential of each employee is discussed with transparency. This is based on defined possibilities, concentrate on the next career step and not on vague promises or remote hypotheses. The Company encourages its employees to express their objectives and expectations in an open dialogue. The objective is to retain and motivate employees by offering attractive but realistic career moves allowing them to develop their skills over a long-term period within the framework of economic reality and a changing environment. Whereas succession plans forecast the Company needs, they are reconciled, inasmuch as possible, with individual development plans. HR management provides the support for implementing the necessary planning tools, having in mind the necessary flexibility to cope with unforeseen situations. However, it is understood that each manager is co-responsible for preparing the resources necessary to the development of the Company as this is also part of his accountability. Regular counseling and guidance are the best tools for improving performance and for helping people develop their skills. It also allows to correct errors swiftly and to transform them into a positive learning experience. Direct personal contact is always been given preference over written communication whenever possible. Each manager has the duty to act as a mentor for his employees. Formal assessment takes place on a regular basis, preferably once a year. Its purpose is to provide feedback on past performance and future potential as well as on other relevant aspects
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Comparison between HR Policies of Public & Private Sector
concerning a staff member?s work including the development of his skills and competencies. Both the positive and negative aspects of individual performance are frankly addressed. Assessment of performance is based on facts rather than opinions. For managerial positions, assessment will be based essentially on agreed objectives and their level of achievement.
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Comparison between HR Policies of Public & Private Sector
Employee Benefits
BPCL
The health and well being of the workforce is of prime importance. They conduct complete health check-up for all employees once a year. They also carry out health check ups for employees working in hazardous areas of our refineries and lubes locations every six months. They are aware of the fact that today?s life style is stressful and most of the locations have taken up health and well being initiatives in one or another form. They provide counseling for life-style diseases - diabetes, hypertension, etc. for employees. Also conduct stress management sessions, yoga, meditation etc. at many locations. They are aware that truck crew and lorry crew are in high risk category to HIV/AIDS infection. They were amongst the first companies in India to sign the ILO Charter on HIV/AIDS. They conduct AIDS awareness training and provide treatment expenses on a case by case basis and balancing related factors. They tied up with respected NGOs that help in awareness creation and provide quality counseling and treatment to HIV infected people.
NESTLE
Fair employment is followed with recruiting relatives of the employees. Provided that they are equally suited as other candidates, priority may be given to children of Nestlé employees with respect to internships, training periods, employment during holidays and similar shortterm assignments. Immediate family members and partners of employees may be hired as employees or consultants only if the appointment is based on qualifications, performance, skills and experience and provided that there is no direct or indirect reporting relationship between the employee and his or her relative or partner.
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Comparison between HR Policies of Public & Private Sector
Dealing with People
BPCL
The corporate vision, which includes ideals to „Be an ethical company? and „Make people the source of our improvement? are reflected in the policies relating to employees. Essentially, without fair practices, attaining the vision would be impossible. The notion of discrimination between employees on any basis, be it religion, sex, race, colour, age, political affiliation, is not tolerated. They are an equal opportunity employer and appoint staff solely on the basis of merit and abilities. Any case of discrimination can be raised to the appropriate personnel and the case is resolved through appropriate channels. As per government rules and regulations, they have special reservations and concessions for employing persons with disabilities and for people belonging to the Scheduled Caste (SC), Scheduled Tribe (ST) and Other Backward Categories (OBC) in the organization.
NESTLE
All respect a series of principles concerning employee?s rights, the protection of children against child labour and other important issues. These principles are to be respected everywhere and under all circumstances. The management will implement the necessary processes to ensure that these principles are enforced at all levels, those who refuse shall be removed from the company. Nestlé provides a working environment which protects the health and welfare of the employees according to the highest affordable standards of safety, hygiene and security. Each employee does not only care for their own safety but also that of their colleagues. Therefore, suggestions for improvement are welcome and will be given prime consideration. Furthermore, any form of harassment, moral or sexual, is not only prohibited but actively tracked and eliminated. Internal rules and regulations explicitly deal with discrimination and harassment issues so as to obtain the best possible prevention. It is essential to build a relationship based on trust and respect of employees at all levels. Therefore, it is indispensable for each manager to know how her/his employees feel in their work. In larger units it is necessary to organise such feedback on a regular basis, using internal surveys or other valuable approaches. Nestlé favours a policy of long-term employment. In case of serious underperformance, a termination of employment is envisaged. Such termination is handled with due respect of the person and should include, where appropriate, separation terms that take into account the employee?s personal situation. When assessing potential it is kept in mind that the best indicator of talent is achievement. Therefore responsibility is given as early as reasonable to allow people to prove themselves. Whenever, an operation/ activity cannot be maintained within the Nestlé sphere, reasonable steps are undertaken to avoid overall loss of employment.
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Comparison between HR Policies of Public & Private Sector
Employee Satisfaction
BPCL
With the objective of making BPCL “A Great Place to Work”, the Employee Satisfaction Enhancement (ESE) cell was formed in the year 1998. The objective of ESE Cell is to lay down a framework for prompt redressal of genuine grievances of all employees of the company. Beyond merely handling grievances on a case by case basis, the ESE Cell proactively works towards improving the systems and processes. Based on the data that is acquired from the various grievances received over the years, such as the nature of grievances, source of grievances, trends, etc, the ESE Cell proposes systemic, procedural and policy related improvements aimed at making us more employee friendly and simultaneously reducing the likelihood of employees feeling aggrieved. Some of the major grievances received by the ESE cell refer to: ? Transfer requests ? Performance Management System related issues ? Promotion related issues ? Inter-personal issues ? Personal problems ? Delay in sanction of loans ? Late receipt of benefits/reimbursements ? Salary anomalies
NESTLE
Promotions are exclusively based on competence, insight, performance and potential with the exclusion of any consideration for origin, race, nationality, gender, religion or age. Flexibility is a requirement for ensuring a positive professional evolution. Staff may be requested to move to other positions. Managers, especially international staff, may be asked to move to other locations. International experience and participation in group development initiatives such as GLOBE, SMPT and others can be acquired in all countries of the Group and are a requirement for holding high-level positions. The development of expertise in specific areas of competence is determinant for the Company?s success. Therefore job rotation is practiced with caution. Whilst job rotation might be useful under certain circumstances, it should not result in weakening our expertise in key areas.
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Comparison between HR Policies of Public & Private Sector
Conclusions
1. PSU- SALARIES ARE LESS PERKS ARE MORE A general difference observed in the private and PSU companies would be in the salaries of the employees. As a trend, the employees of PSU companies are not given high salaries but the factor that yet keeps them on is the lucrative perks given to them (e.g. house, club memberships, guest house facilities, etc). While in the private companies the employees are given higher salaries to keep them going with lesser perks over and above their salaries. 2. MINISTRY INTERFERENCE AT BPCL AND NESTLE WORLDWIDE INTERFERENCE AT NESTLE INDIA The sector of company chosen by us is one of the biggest PSU oil company and hence a high amount of interference is seen. A great amount of management decisions need to be approved by the ministers. While in a company like Nestle, the working of the company remains dependant on Nestle- World. 3. JOINING THE COMPANY AT INITIAL STAGE – BPCL, JOINING THE COMPANY AT ANY TIME – NESTLE As a general HR policy seen, BPCL believes in recruiting the candidates at an initial stage such that they can build their own work force as per the requirements of the company. While Nestle does not have any such policy. 4. Attrition rate at BPCL is lower due to various factors. 5. Comparing BPCL and Nestle India we see that BPCL is a much larger company with higher revenues. 6. Many a times PSUs like BPCL have to undergo losses due to the subsidized price set by the govt. such a situation is observed in the case of LPG and petrol sales. 7. Social status as PSU company head is more than private company In general, the social status of the management executives of a PSU is much higher than that of the management executives of other private firms. Hence this is seen as a benefit and valued more. 8. PSU – SAFETY AND SECURITY OF JOB Job security and safety is one of the most important factors when a person looks for a job and this has been observed in the PSU companies. While in private companies at times during recession employees can be laid off easily. Also, at the point where your efficiency decreases, your job is in danger.
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Comparison between HR Policies of Public & Private Sector
References
WEB REFERENCES
http://www.bharatpetroleum.com/pdf/SR07-08_Soc_perf.pdf www.sba.muohio.edu/Som_Organizational%20Redesign%20at%20BPCL%20The%20Challenge www.careers.nestle.com ww.nestle.com/Resource.axd?Id=E9EC6B84-3562-4FD3-99D6
PEOPLE REFERENCES
? ? MR. S. MOHAN, DIRECTOR, HR, BPCL MR. T. SOMNATH, DIRECTOR, TALENT MANAGEMENT, BPCL
Page 18 of 18
doc_744601816.docx
The documentation about comparison of HR(human resources) policies in public and private sector.It takes BPCL(bharat petroleum) and Nestle as the examples
Comparison between HR Policies of Public & Private Sector
BPCL & Nestle
Comparison between HR Policies of Public & Private Sector
INDEX
S. No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Introduction Objective of the Study Methodology HR policies Overview Recruitment Training Work- life Balance Employee Development & Growth Remuneration Appraisal system Employess Benefits Dealing with people Employee Satisfaction Conclusions References
TOPIC
PAGE NO.
3 4 4 5 6 8 9 10 11 12 14 15 16 17 18
Page 2 of 18
Comparison between HR Policies of Public & Private Sector
Introduction
BPCL
BPCL has always put “People above Oil” and attributes all its achievements to its people. It is in the organization?s interests to look after their people, enable their growth and provide support in the best possible way. Their employee strength is around 14000 spread across the various dimensions of India. In terms of professional development, well-established central and regional learning centers conduct programs for skill upgradation that are precise and linked to business priorities, enhancing employees? ability to drive change. Attracting and retaining employees is a key challenge in this highly competitive environment. BPCL has geared up to this challenge and is striving to make our work environment more informal and approachable and has also started a mentoring process. A newly introduced initiative that has met with resounding success is the face-to–face counseling for the employees and their families. BPCL is also working towards promoting diversity in the workforce. They recognize that there is much to do in this area, but with the provision of facilities such as crèches for mothers, set up of sexual harassment committees, etc. they are moving in a positive direction. They also encourage their people to pursue their passions. In a country in which sports are often neglected, BPCL has taken it upon itself to encourage promising sportspersons by providing them employment with the company. Some of India?s best sportspersons such as Saina Nehwal (Badminton), Anup Shridhar (Chess), Devendra Joshi (Billiards) amongst many others are BPCL employees.
NESTLE
Nestlé is a large international food manufacturer with over 250,000 employees worldwide. Nestlé has set high standards in corporate principles and its relationship with all of its stakeholders. Nestle has such a large scale of workers and must ensure they have a good management system to maintain the employment relationship. The fact that Nestlé is more people and product than systems oriented is reflected in the way HR is functioning and is organized. Processes and systems as well as professional HR tools are there to support HR management but never to the detriment of the human dimension. The human perspective is present at all times and under all circumstances. HR function indeeds provide flawless administrative support; its main role is to add value to the business and to play a proactive role in every situation where HR action is required. It should be kept in mind that the HR contribution aims in the first place at optimizing the overall company performance through improving people performance. With the evidence that the human capital is of increasing importance, HR plays indeed a pivotal role in the
Page 3 of 18
Comparison between HR Policies of Public & Private Sector
conception and implementation of the people strategies that impact financial results and the organization?s overall reputation and effectiveness.
Objective of the Study
Following are the few objectives of the study: ? ? ? ? To understand the contents of the HR Policies of an organization To study the HR policies of a pubic sector organization To study the HR policies of private sector organization To perform a comparative analysis and find out the difference between a public and private sector organization
Methodology
For the purpose of the study we met Mr. S.Mohan, Director, HR of BPCL and Mr. T. Somnath, Director, Talent Management, BPCL. We interviewed both the persons. They gave us valuable insights about the HR policies followed in BPCL. Since, we could not get the contact for Nestle, we used web references to get the information about the Nestle Hr Policies. After receiving the information from both the organizations, we tried to understand and perform a comparative analysis of the HR policies of the two firms.
Page 4 of 18
Comparison between HR Policies of Public & Private Sector
HR Policy: Overview
BPCL
For Bharat Petroleum, commitment of its employees is a critical resource. Fully realizing that only a satisfied employee will put his best foot forward with the customers; Bharat Petroleum has taken many steps to make the organization a „Great Place to Work’. Bharat Petroleum fosters effective value-based HR processes for development of people and their organizational capabilities with a view to provide them with a competitive edge and also to realize their personal vision in tandem with the corporate vision. The thrust areas include: ? Performance Management which links business goals with individual performance goals. ? Recognizing competencies and capabilities of the staff through Competency Modeling to help identify and place the right person in the right job. ? Identifying competency gaps and bridging such gaps through appropriate training and developmental programmes. ? Multi-skilling to encourage employees to take up new initiatives in the areas of Enhanced Fuel Proposition, Add-on Stores, One Stop Truck Shops, Grocery and Fast Food Stores.
NESTLE
The Nestlé Management and Leadership Principles describes the management style and the corporate values of the Nestlé Group, specifically in the area of interpersonal relations. Their respect calls for specific attitudes which deserve to be outlined in the present policy: ? “A prerequisite for dealing with people is respect and trust. There can be no room for intolerance, harassment or discrimination of any kind as they are the expression of an elementary lack of respect.” This principle suffers no exception and is to be applied at all levels and under all circumstances. ? Transparency and honesty in dealing with people are a sine qua non for efficient communication. Based on facts and on a sincere dialogue, such transparency is the only solid basis for boosting continuous improvement. ? It is complemented by open communication with the purpose of sharing competencies and boosting creativity. It is particularly relevant in a flat organization to convey systematically all information to those who need it to do their work properly. ? Every employee has the right to an open conversation with superiors or colleagues. ? The willingness to cooperate and to help others is a required basis for assessing potential candidates in view of a promotion. ? In case of discord between an employee and her/his superior or another employee, the possibility is offered for a fair hearing. The HR staff provides assistance to ensure that the disharmony is dealt with impartially and that each party has the opportunity to explain her/his viewpoint regardless of hierarchical position.
Page 5 of 18
Comparison between HR Policies of Public & Private Sector
Recruitment
BPCL
? Recruitment at BPCL takes place at a junior level. Most recruitments at BPCL are at entry level. The company believes in building its human potential rather than buying it from the market. Until now it was seen as a lifetime job and people worked their way up through the management. They believe in increasing sales force from the existing employee base by retraining and redeployment of management staff. Selection within the organization is done by matching the job profile and the appraisal. Scope for promotion is less at BPCL. The average age profile at BPCL is between 35 and 40 years. A promotion can only be expected after three years. There is a system of job-rotation. Wide array of jobs are available to the entry level from finance to retail to logistics. To occupy a responsible position a person needs to have a work experience in at least three departments. It is the duty of the HR manager to pick up the best candidates and not many candidates. Engineers are recruited generally from the IIT?s, NIT?s whereas MBA?s are recruited from XLRI and IIM?s.
? ? ? ? ? ? ?
NESTLE
The long-term success of the Company depends on its capacity to attract, retain and develop employees able to ensure its growth on a continuing basis. Nestlé hires staff with personal attitudes and professional skills enabling them to develop a long-term relationship with the Company. Therefore the potential for professional development is an essential standard for recruitment. ? Each new member joining Nestlé is to become a participant in developing a sustainable quality culture which implies a commitment to the organization, a sense for continuous improvement and leaves no place for complacency. ? Moreover, for managerial positions specific leadership qualities and business acumen are required. ? Contacts with universities, attendance at recruitment events and other contacts are undertaken so as to ensure good visibility of the Company vis-à-vis relevant recruitment sources. ? Even when promoting employees intensively from within the organization, it is the role of management and HR to keep an eye on valuable candidates from outside and to benchmark internal skills with external offers. ? Whilst adequate recruitment tools may improve the hiring process, the decision to hire a candidate remains in the hands of the responsible manager supported by the HR
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staff. Under no circumstances should the decision to hire or not to hire be left in the hands of an outside consultant or expert. Relevant skills and experience are considered in employing a person. No consideration is given to a candidate?s origin, nationality, religion, race, gender or age. It is important to hire the right person as it is to integrate newcomers in the organization so that their skills and behavior can merge smoothly with the company culture. Whereas from new employees they expect to respect company?s culture, it is accordingly required from all employees to show an open mind towards new ideas and proposals coming from outside.
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Training
BPCL NESTLE
Once people join they are bought on same platform as the other employees. About 3 weeks classroom training is provided and then 2 months field training is given before the final assignment. This is done so that both the parties know what is expected from the employee and what can be achieved by the employee.
The responsibility of people development lies with three partners: the employee, her/his manager, and the human resources manager. Various processes and methods for developing employees are applied, such as: - On-the-job training - Classroom training - e-learning - Job rotation - Performance management - International assignments - Coaching - Project assignments
Motivation at BPCL
•The employees can be best motivated by their bosses. The duty on each employee is to match the aspirations of their subordinates to the projects allotted to them. •Another path followed to motivate their employees is by giving freedom and a perfect ambience for the overall development of the employee. The decentralization of authority has fostered the cooperative work culture and raised the employee morale.
Motivation at NESTLE
•Nestle believes that only highly motivated employees lead to satisfied customers, hence to business success. Therefore, Nestle conducts periodic employee motivation surveys and creates action plans according to the results in order to constantly improve the motivation level and sustain it above the national norm in each country.
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WORK LIFE BALANCE
BPCL
At BPCL, they try to keep the employees happy by helping them to maintain their work life balance.
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Family Wellbeing It is a known fact that family is one of the most closely knit system which needs to be enriched to cope with the stresses and strain of life. Thus when an employee comes with a problem, joint counseling sessions are also conducted including his family members to ensure resolving of problems amicably. Grooming Children As Caretakers Of Next Generation Children are tomorrow?s future, and when it comes to the employee?s children, they ensure development through various activities like Career guidance, aptitude tests, etc Parenting During training or workshops, one of the main topics covered is parenting. This is important because in today?s competitive world it is very difficult to manage both work and house Thus to ensure care of children, parenting sessions are conducted about emotional problems and problems encountered by children at different stages, puberty issues, etc.
NESTLE
At Nestlé it is believed that the employee?s private and professional life should have a good balance. Not only because it reinforces employee?s satisfaction, loyalty and enhances productivity but also because it positively reflects on the Company?s reputation. It helps attracting and retaining people and reconciles economical imperatives with well being. Nestlé encourages flexible working conditions whenever possible and encourages its employees to have interests and motivations outside work.
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Employee Development and Growth
BPCL
They have set up a „Development Centre? for the employees. Through the „Development Centre?, competencies and developmental potential of the participants are assessed by trained professionals using a diagnostic process. Annually they conduct 3-day workshops for pre-retirement colleagues so that they are well advised before entering retirement life. The workshops are conducted by external experts and cover topics such as sound financial management and preventive health maintenance. BPCL invests in training and development to enable all employees to perform to the best of their ability and to support their career progression. They work hard to attract and retain the best and the brightest people at BPCL and to help them develop their potential. The Bharat Petroleum Learning Centre at Mumbai and the Regional Training Centres are used for imparting training on new initiatives and for skill upgradation of employees. They do not discriminate in respect of hiring, remuneration, access to training, termination or retirement, based on race, caste, national origin, religion, disability, gender, union membership, political affiliation and age. The IDEAS is a platform provided to the BPCL employees to share their ideas. The submitted ideas are evaluated by the IIM-B professionals for they practicality and sustainability. The best idea is then rewarded and implemented. This is a very powerful tool for innovation.
NESTLE
Learning is part of the Company culture. Each employee, at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by Nestlé. Training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and it is crucial to make each one progress in her/his position. When formal training programs are organised they should be purpose oriented and designed to improve relevant skills and competencies. Adequate training programs are developed at the level of each operating company capitalizing on the availability of local, regional or global resources of the Group. It is the responsibility of HR staff to assist the management in the elaboration of training programs. Great importance is attached to programs enhancing the language skills of the employees. Training programs organised at the International Training Centre Rive-Reine aim at developing and sharing best practices of the various management disciplines practised in the Group. They also strive to strengthen corporate cohesion as well as to promote networking throughout the Group. It is necessary to make optimal use of e-learning programs as a complement to or a substitute for formal training programs. According to needs they should be made available at shop floor level and enlarge the access to training.
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Remuneration
BPCL
At BPCL, taking care of employees? intellectual and growth needs and the promotion of a cohesive work culture is important. Regular performance appraisals reward strong performance, identify training needs and help people set objectives in terms of career progression and performance targets that are of mutual benefit to them and the company. With a view to differentiate performance and reward high performers, they introduced a Performance Related Incentive Scheme in 200304. Since then, quarterly career development reviews are conducted for all employees apart from the year end performance appraisal. Every employee has the freedom to complain regarding various issues like home, promotion policies, subordinates, boss etc to the higher authorities.
NESTLE
Nestlé favours competitive, stimulating and fair remuneration structures offering an overall competitive and attractive compensation package. Remuneration includes salary, any variable part of remuneration as well as social, pension and other benefits. Nestlé?s policy is to strive to position it self as an employer offering remuneration levels above the average of the relevant benchmark. Nestlé reviews regularly its competitive position with other companies so as to keep in line with the market trends. However, the evolution of remuneration is in the first instance determined by the capacity of the Company to improve its productivity. Wage and salary structures should be kept simple and avoid unnecessary complexity so as to provide effective compensation and reward. Remuneration structures specifically facilitates the implementation of flat organizational structures and be flexible so as to be able to adapt to the evolution of the market conditions. It is the responsibility of each manager to propose, within the framework of the company policy, the remuneration of her/his employees, taking into account the local market, individual performance, skills and potential for development. It is also the responsibility of each manager to communicate properly, clearly and with sufficient transparency, the individual remuneration of each staff member taking into account her/his professional performance and her/his specific responsibilities. The quality of communication in these matters is an essential part of the dialogue that each manager will have with her/his employees on remuneration matters. It is realized that, however important remuneration is for each employee, it is not remuneration alone that will stimulate the motivation of the staff. The HR management sees to it that the implementation of the remuneration policy is fair throughout the organization and that its spirit is duly reflected.
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Appraisal system
BPCL
Each employee is continuously evaluated on the basis of his/her performance. The basic evaluation is by the measurement of the outputs given by him. In case of a problem the manager along with his sub-ordinate can sit and track down the root cause of the problem in order to eliminate it. Appropriate solutions are developed and the result is seen in the next appraisal (after a period of 6 months) ? Feedback system is also used. ? Performance appraisal systems are in place in the company. ? 360 degree mechanism approach is adopted by the company. ? They have now started following a fast track promotion policy wherein the min. no of years of experience is brought down from 5 to 3 years. This has been done in mind specifically keeping the younger generation and their quick job changes. This is done with a view to retain the talent. The categories are from A- K (Lower most to Chairman)
NESTLE
Each employee is in charge of her/his own professional development. However, the Company endeavors to offer the opportunity to progress for those having the determination and the potential to develop their capabilities. Such opportunities are taken into account and the potential of each employee is discussed with transparency. This is based on defined possibilities, concentrate on the next career step and not on vague promises or remote hypotheses. The Company encourages its employees to express their objectives and expectations in an open dialogue. The objective is to retain and motivate employees by offering attractive but realistic career moves allowing them to develop their skills over a long-term period within the framework of economic reality and a changing environment. Whereas succession plans forecast the Company needs, they are reconciled, inasmuch as possible, with individual development plans. HR management provides the support for implementing the necessary planning tools, having in mind the necessary flexibility to cope with unforeseen situations. However, it is understood that each manager is co-responsible for preparing the resources necessary to the development of the Company as this is also part of his accountability. Regular counseling and guidance are the best tools for improving performance and for helping people develop their skills. It also allows to correct errors swiftly and to transform them into a positive learning experience. Direct personal contact is always been given preference over written communication whenever possible. Each manager has the duty to act as a mentor for his employees. Formal assessment takes place on a regular basis, preferably once a year. Its purpose is to provide feedback on past performance and future potential as well as on other relevant aspects
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concerning a staff member?s work including the development of his skills and competencies. Both the positive and negative aspects of individual performance are frankly addressed. Assessment of performance is based on facts rather than opinions. For managerial positions, assessment will be based essentially on agreed objectives and their level of achievement.
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Employee Benefits
BPCL
The health and well being of the workforce is of prime importance. They conduct complete health check-up for all employees once a year. They also carry out health check ups for employees working in hazardous areas of our refineries and lubes locations every six months. They are aware of the fact that today?s life style is stressful and most of the locations have taken up health and well being initiatives in one or another form. They provide counseling for life-style diseases - diabetes, hypertension, etc. for employees. Also conduct stress management sessions, yoga, meditation etc. at many locations. They are aware that truck crew and lorry crew are in high risk category to HIV/AIDS infection. They were amongst the first companies in India to sign the ILO Charter on HIV/AIDS. They conduct AIDS awareness training and provide treatment expenses on a case by case basis and balancing related factors. They tied up with respected NGOs that help in awareness creation and provide quality counseling and treatment to HIV infected people.
NESTLE
Fair employment is followed with recruiting relatives of the employees. Provided that they are equally suited as other candidates, priority may be given to children of Nestlé employees with respect to internships, training periods, employment during holidays and similar shortterm assignments. Immediate family members and partners of employees may be hired as employees or consultants only if the appointment is based on qualifications, performance, skills and experience and provided that there is no direct or indirect reporting relationship between the employee and his or her relative or partner.
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Dealing with People
BPCL
The corporate vision, which includes ideals to „Be an ethical company? and „Make people the source of our improvement? are reflected in the policies relating to employees. Essentially, without fair practices, attaining the vision would be impossible. The notion of discrimination between employees on any basis, be it religion, sex, race, colour, age, political affiliation, is not tolerated. They are an equal opportunity employer and appoint staff solely on the basis of merit and abilities. Any case of discrimination can be raised to the appropriate personnel and the case is resolved through appropriate channels. As per government rules and regulations, they have special reservations and concessions for employing persons with disabilities and for people belonging to the Scheduled Caste (SC), Scheduled Tribe (ST) and Other Backward Categories (OBC) in the organization.
NESTLE
All respect a series of principles concerning employee?s rights, the protection of children against child labour and other important issues. These principles are to be respected everywhere and under all circumstances. The management will implement the necessary processes to ensure that these principles are enforced at all levels, those who refuse shall be removed from the company. Nestlé provides a working environment which protects the health and welfare of the employees according to the highest affordable standards of safety, hygiene and security. Each employee does not only care for their own safety but also that of their colleagues. Therefore, suggestions for improvement are welcome and will be given prime consideration. Furthermore, any form of harassment, moral or sexual, is not only prohibited but actively tracked and eliminated. Internal rules and regulations explicitly deal with discrimination and harassment issues so as to obtain the best possible prevention. It is essential to build a relationship based on trust and respect of employees at all levels. Therefore, it is indispensable for each manager to know how her/his employees feel in their work. In larger units it is necessary to organise such feedback on a regular basis, using internal surveys or other valuable approaches. Nestlé favours a policy of long-term employment. In case of serious underperformance, a termination of employment is envisaged. Such termination is handled with due respect of the person and should include, where appropriate, separation terms that take into account the employee?s personal situation. When assessing potential it is kept in mind that the best indicator of talent is achievement. Therefore responsibility is given as early as reasonable to allow people to prove themselves. Whenever, an operation/ activity cannot be maintained within the Nestlé sphere, reasonable steps are undertaken to avoid overall loss of employment.
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Employee Satisfaction
BPCL
With the objective of making BPCL “A Great Place to Work”, the Employee Satisfaction Enhancement (ESE) cell was formed in the year 1998. The objective of ESE Cell is to lay down a framework for prompt redressal of genuine grievances of all employees of the company. Beyond merely handling grievances on a case by case basis, the ESE Cell proactively works towards improving the systems and processes. Based on the data that is acquired from the various grievances received over the years, such as the nature of grievances, source of grievances, trends, etc, the ESE Cell proposes systemic, procedural and policy related improvements aimed at making us more employee friendly and simultaneously reducing the likelihood of employees feeling aggrieved. Some of the major grievances received by the ESE cell refer to: ? Transfer requests ? Performance Management System related issues ? Promotion related issues ? Inter-personal issues ? Personal problems ? Delay in sanction of loans ? Late receipt of benefits/reimbursements ? Salary anomalies
NESTLE
Promotions are exclusively based on competence, insight, performance and potential with the exclusion of any consideration for origin, race, nationality, gender, religion or age. Flexibility is a requirement for ensuring a positive professional evolution. Staff may be requested to move to other positions. Managers, especially international staff, may be asked to move to other locations. International experience and participation in group development initiatives such as GLOBE, SMPT and others can be acquired in all countries of the Group and are a requirement for holding high-level positions. The development of expertise in specific areas of competence is determinant for the Company?s success. Therefore job rotation is practiced with caution. Whilst job rotation might be useful under certain circumstances, it should not result in weakening our expertise in key areas.
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Conclusions
1. PSU- SALARIES ARE LESS PERKS ARE MORE A general difference observed in the private and PSU companies would be in the salaries of the employees. As a trend, the employees of PSU companies are not given high salaries but the factor that yet keeps them on is the lucrative perks given to them (e.g. house, club memberships, guest house facilities, etc). While in the private companies the employees are given higher salaries to keep them going with lesser perks over and above their salaries. 2. MINISTRY INTERFERENCE AT BPCL AND NESTLE WORLDWIDE INTERFERENCE AT NESTLE INDIA The sector of company chosen by us is one of the biggest PSU oil company and hence a high amount of interference is seen. A great amount of management decisions need to be approved by the ministers. While in a company like Nestle, the working of the company remains dependant on Nestle- World. 3. JOINING THE COMPANY AT INITIAL STAGE – BPCL, JOINING THE COMPANY AT ANY TIME – NESTLE As a general HR policy seen, BPCL believes in recruiting the candidates at an initial stage such that they can build their own work force as per the requirements of the company. While Nestle does not have any such policy. 4. Attrition rate at BPCL is lower due to various factors. 5. Comparing BPCL and Nestle India we see that BPCL is a much larger company with higher revenues. 6. Many a times PSUs like BPCL have to undergo losses due to the subsidized price set by the govt. such a situation is observed in the case of LPG and petrol sales. 7. Social status as PSU company head is more than private company In general, the social status of the management executives of a PSU is much higher than that of the management executives of other private firms. Hence this is seen as a benefit and valued more. 8. PSU – SAFETY AND SECURITY OF JOB Job security and safety is one of the most important factors when a person looks for a job and this has been observed in the PSU companies. While in private companies at times during recession employees can be laid off easily. Also, at the point where your efficiency decreases, your job is in danger.
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References
WEB REFERENCES
http://www.bharatpetroleum.com/pdf/SR07-08_Soc_perf.pdf www.sba.muohio.edu/Som_Organizational%20Redesign%20at%20BPCL%20The%20Challenge www.careers.nestle.com ww.nestle.com/Resource.axd?Id=E9EC6B84-3562-4FD3-99D6
PEOPLE REFERENCES
? ? MR. S. MOHAN, DIRECTOR, HR, BPCL MR. T. SOMNATH, DIRECTOR, TALENT MANAGEMENT, BPCL
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doc_744601816.docx