Professional Documents
Culture Documents
EXECUTIVE SUMMARY
L&T-Komatsu Limited, a joint venture of L&T and Komatsu, Japan, a world leader in Hydraulic
Excavators, manufactures state of-the-art Hydraulic Excavators at its Bangalore Works. L&T-
Komatsu received ISO 9001 accreditation for manufacture, marketing and service of Hydraulic
Excavators and also received recognition from BIS, through the ‘Rajiv Gandhi Quality Award
- Best in All’ category. Earlier the ‘Golden Peacock’ Quality Award was conferred by the
Institution of Directors. The Company received ISO 14001 certificate for its Environment
Management System and certificate of commendation for ‘Business Excellence 2000’ – CII-
EXIM Business Excellence Award and OHSAS 18001Certification for Occupational Health and
Safety Management System.
The 7-S model is a tool for managerial analysis and action that provides a structure with which to
consider a company as a whole, so that the organization's problems may be diagnosed and a
strategy may be developed and implemented. Those seven elements are distinguished as Hard
S’s and Soft S’s. The hard elements i.e., Structure, Staff and System are feasible and easy to
identify. The Four soft S’s i.e., Shared Value, Skills, Strategy and Style are hardly feasible.
4. SWOT analysis:-
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieve that objective.
OBJECTIVES-
METHODOLOGY
RESEARCH DESIGN OF THE STUDY-
DISCRIPTIVE RESEARCH TECHNIQUE-
Gathering and presenting the statements of fact through questionnaire method and interview
schedule.
SOURCES OF DATA-
Primary Data:
It was collected through structured questionnaire.
Secondary Data:
It was collected from textbooks, magazines, journals, company profile, internet.
Sample unit – employees
Sampling technique – Random sampling technique
Sample size – 100
Tools used for data collection:
Structured questionnaire were administered to employees in order to collect the information
Method of analysis
Tabular columns were used to arrange the data in a systematic way, the statistical tools like
percentage analysis is used and shown through diagram for analysis and interpretation of the
data.
LIMITATIONS OF THE STUDY
• The sample size was limited to 100 because of time constraint.
• Due to the busy schedule of the employees, few forms were received with no comments.
• Analysis and interpretation of data is done on the assumption that the information given
by the respondents is unbiased.
• Converting qualitative data into quantitative data may lead to inaccurate results
• The respondents may not have expressed them strong negative feelings about the
policies, which results in the error of central tendency.
FINDINGS
• All the respondents feel that the conditions on their job allow them to be productive. Thus
it is clear that the conditions on the job are congenial to raise the productivity of the
workers which is very essential for both the management and workers to achieve their
objectives of higher productivity.
• A minor 20% agreed that the organization provides high quality tools to do the job. A 68%
remained neutral , and a 8% disagreed and a 4% strongly disagreed. Thus it can be
concluded that there is no positive attitude towards the provision of tools.
• Only a mere 4% are satisfied with the oppourtunities for promotion. Hence it can be
concluded that the chances for promotion are not attractive among the employees..
• Job security is the vital factor to assess the quality of the work life in any organization.
Since the job security in the study sample ensures that there are majority chances for
good performance ,the quality of work life is up to the expectation.
• The relationship between the peers is satisfactory at LTK which creates a healthy work
life and better productivity.
• The superior – subordinate relation plays a vital role in determining the quality of work
life in an organization. 88% of the respondents agreed that there are good relations with
their supervisor.and 12% disagreed. The employees are also satisfied with the helpind
tendency of their supervisors.
• Most of the employees are of the opinion that their work is stresssfull. , though
manageable , if allowed uncontrolled will spoil the quality of work ..
• A considerable number of 44% of employees are unhappy with their pay and this may
have a negative effect on the quality of work life and motivation to work.
• . The employees family members are made part of the company through various activities
like picnics, competitions and other activities. This leads to a healthy and satisfactory
work life at LTK.
• Most of the workers are of the opinion that they are proud to work in LTK. 20% strongly
agreed that they are proud to to be part of LTK, 76% agreed, and the remaining 4% are
neutral. Thus the image of the company in the minds of the workers is very high, which is
very essential for improving the quality of work life in it.
CONCLUSION -
The management plays a very important role in making the Company achieve success in
domestic and world markets. To be the best, the company focuses on providing a great quality of
work life to its employees.
From the study, it is clear that quality of work life of employees in L&T KOMATSU Pvt
Ltd., is good. This research highlights some of the small gaps in employee’s satisfaction towards
the company.
L&T KOMATSU Pvt Ltd aims to promote the peaceful industrial relations and good
organization which is highlighted by management and the employees. Since employees are the
backbone of the company they should be satisfied in order to improve the business in the higher
competitive market of the liberalized economy.
The employees’ across different levels of management are satisfied by their association
with the organization, the leadership styles of the managers and supervisors, work culture ,the
interpersonal relationships,welfare facilities and other factors that motivate employees to
perform their responsibilities efficiently.
The company believes in employee’s satisfaction and effective productivity hours.
Quality mission includes not only the quality of the products but also the Quality of Work Life.
1. INDUSTRY PROFILE
1.1.Introduction
I SECTOR PERFORMANCE
GLOBAL SCENARIO:
Exporters of construction machineries too are riding the boom wave with the bagging orders
from West Asian and African countries. Most of them have managed to the net huge profits with
many registering as high as a threefold increase.
The boom has started a rippling effect touching various other spheres of activity that
are not directly related to construction. Manufacturers of ancillary products such as crane, ropes,
cables, pulleys and buckets too are benefited from the boom.
Indian construction majors working on overseas projects have opened the world for this Industry.
They are getting hefty orders from these companies to source their projects. Companies have
also begun getting enquiries from real estate contractors and construction companies of these
countries. They are working overtime to meet their demand deadlines.
While domestic requirement is driving the growth rates in the construction equipment
industry, export today are relatively low. India’s construction equipment sector has a market size
of €1.49 billion; a fraction of the global market is over €5.67 billion. The global industry is
growing at a 5%, while the Indian construction equipment sector is growing at the rate of 30%
annually.
Excavator market is Asia and Latin America market are rising at a faster rate. It’s estimated that
in next 5 years, the domestic excavator manufacturer should make use of this opportunity and
seek for agents, attend large-scale exhibition to explore international market.
INDIAN SCENARIO:
The burgeoning construction sector has harbingered good times for companies manufacturing
construction machineries and equipment. The appreciable increase in the real estate and
construction activities has resulted in a surge of demand for transit concrete mixers, bar-bending
and cutting machines, excavators and backhoes and earth rammers.
The rapid growth in economy has accentuated the need for improving infrastructure. State
governments, development authorities and even companies have begun investing in
infrastructure development projects. Moreover, the central government has invested heavily in
irrigation and mining projects across the country. All these factors have contributed immensely
to the increased use of construction machinery.
Before the opening up of the Indian economy, the entry of international majors, much of
infrastructure development and construction in the real estate sector was done manually. But
with the infrastructure and construction sectors undergoing dramatic changes- with 60-storeyed
sky-scrapers being built in cities like Mumbai, and thousands of kilometers of expressways and
highways being laid cross the sub-continent- builders and contractors are acquiring sophisticated
equipment sector, which has adapted rapidly to the changed scenario, this is indeed good news,
as it paves the way for an exciting future.
The opening up of the Indian economy and the booming infrastructure and real estate sectors
attracted international giants including JCB, Volvo, Terex, Caterpillar and Hitachi.
In all there are about 200 domestic construction equipment manufactures (small, medium and
large). Telco construction Equipment Company (Telcon), Tata firm is a major player in this
sector.
II SECTOR POLICY
PEST Analysis:
PEST Analysis is a simple but important and widely used tool that helps us to understand
the big picture of the Political, Economic, Socio-Cultural and Technological environment that
businesses operate. PEST is used by business leaders worldwide to build their vision of,
Political:
Political scenario of our country is very unstable. Because of this instability policies keep
changing which in turn affects industries, which involve imports and exports.
The mining industry is set to save tens of thousands of dollars and the cost of imported heavy
equipment, thanks to new changes to custom duties. The federal government says it will remove
the three percent customs duty applying to most imported heavy equipment.
Economic:
The rapid growth in the economy has accentuated the need for improving infrastructure. State
government, development authorities and even companies have begun investing in infrastructure
development projects. Moreover, the Central Government has invested heavily in irrigation and
mining projects across the country. All these factors have contributed immensely to the increased
use of construction machinery. As the industry has a wide domestic market it is not affected by
rupee appreciation.
India has a large and growing middle class population of 300 million people, out of which a large
section is need on new houses. It is estimated that there is a national hosing storage of 41 million
units. Retailing is becoming the boom industry with organized retail being a market of €4.494
billion. Water supply and sanitation projects alone offer scope for annual investment of €4.27
billion. The ministry of power has formulated a blueprint to provide reliable, affordable and
quality power to all users by 2012. This calls for an investment of €54.67 billion in the next 5
years. All those pose a great opportunity for this industry.
Technological:
Word Technology is attached to continuous change, so is with the Excavator Industry. Even
though applications where excavators used are same, the ways they are used are not same. As
these machines are used in tough conditions demand for increased safety is high. Majority of the
Indian Players have collaborated or joint ventured with foreign companies. Most of the times
technology is bought from them. So India is on par with the global standards. Still continuous
modification is needed to suit the changing conditions. Fuel efficiency, life of these machines is
high. For 360 degrees structure hydraulic motors are suitable. So technology of these machines is
not very dynamic as in case of IT industry.
2. COMPANY PROFILE
The evolution of L&T into the country's largest Engineering and Construction Organization is
among the most “remarkable success stories” in Indian Industry.
Beginning with the import of machinery from Europe, L&T rapidly took on Engineering and
Construction assignments of increasing sophistication. Today, the company sets global
Engineering benchmarks in terms of scale and complexity.
Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark, would not have
dreamt, as they were learning about India in history classes that they would, one day, create
history in that land.
In 1938, the two friends decided to forgo the comforts of working in Europe, and started their
own operation in India. All they had was a dream. Their first office in Mumbai (Bombay) was so
small that only one of the partners could use the office at a time.
In the early years, they represented Danish manufacturers of dairy equipment for a modest
retainer. But with the start of the Second World War in 1939, imports were restricted, compelling
them to start a small work-shop to undertake jobs and provide service facilities.
Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced
the partners to stand on their own feet and innovate. They started manufacturing dairy equipment
indigenously. These products proved to be a success, and L&T came to be recognized as a
reliable fabricator with high standards.
The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation
of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and
fabrication shops - the Company had begun to expand.
Again, the sudden internment of German engineers (because of the War) who were to put
up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area
where their capability became well respected.
Larsen & Toubro group started in 1975 to manufacture Hydraulic Excavators. On 1st Feb 1998 it
entered into a Joint Venture with 50:50 equity participation from L& T and Komatsu Asia
Pacific Pte, Singapore, a wholly owned subsidiary of Komatsu Limited Japan. LTK -BW is the
largest manufacturer of Hydraulic Excavators and high-pressure Hydraulic systems and
components.
The various products of Hydraulic works are Hydraulic Motors, Pumps, Turning Joints,
Hydraulic Cylinders, Hoses, Valve bank, Power packs of different varieties.
The plant employs about 660 people among which 244 management staff and 416 people
belongs to unionized category.
The company publishes one-house magazine every quarter in the name of Bangalore Blooms.
The magazine also serves the purpose of providing an opportunity for employees to give their
experience to their literary talents. Family members are also given an opportunity to show their
creative ability.
4. Heavy Engineering
Heat Transfer Equipment
Pressure Vessels
Refinery & Cracker Plant equipment
Equipment & Systems for power plant
Industrial Machinery
Rubber Processing Machinery
Plastic Engineering
Electrical & Electronics
Control Power Grade Projects
Motor Starters
Energy Meters
Wires & Cables
Electrical Systems & Equipment
Currently L & T Komatsu, Bangalore works Ltd is in the first place in manufacturing excavators
and Caterpillar holds the second place. It holds a market share of 43%.
QUALITY POLICY-
Provide resources to maintain & continually improve the quality management system
with a view to deliver quality products and services.
Train and build awesome among our entire employee to enhance, customer
satisfaction on a continuous basis.
VISION-
MISSION-
We manufacture & market products & services for Indian and select overseas markets,
servicing Earthmoving & Construction Industry and oil fields.
We are also in the business of Diesel Engines, Gensets and Hydraulic Drives & Systems.
Our focus is to achieve Cost leadership in all our business operations. We shall attain
market Leadership by providing products and services of high reliability, backed by
Quick response to customer needs
We shall strive for total customer satisfaction and achieve significant Improvement in
Returns on fund employed.
Customer delight through total quality and service shall be our guiding force.
L&T-ites shall be an inspired team, empowered by a culture of trust and caring to serve
all stakeholders.
L&T has a global presence. A thrust on International Business over the years has seen overseas
revenues growing steadily. The company has manufacturing facilities in India, China, Oman and
Saudi Arabia. It has a global supply network with offices in 10 locations worldwide, including
Houston, London, Milan, Shanghai, and Seoul. Customers include global majors in over 30
countries.
2.7. COMPETITORS-
2.8.
INFRASTRUCTURAL FACILITIES-
Manufacturing Facilities
Fabrication Technology:
Year Achievement
Manufactured.
OHSAS 18001:1999
STEEL PLATES
SHOT
BLASTING
PAINTING
ASSEMBLING
L and T-Komatsu, Bangalore Works plans for obtaining improved Reliability and Cost
Reduction for this year. Following would facilitate achieving this:
1. Resource management:
a) Implement TPM and number of equipment under TPM : >30
Cycle time (through put time) reduction : 25% from present
b) Inventory discrepancy : zero
Inventory adjustment : <1%
2. Control Direct Material Cost and Overhead expenses: 3% & 5% respectively less
than budgeted level
INTRODUCTION
The model starts on the premise that an organization is not just Structure, but consists of seven
elements:
7-S Model
The 7-S model is a tool for managerial analysis and action that provides a structure with which to
consider a company as a whole, so that the organization's problems may be diagnosed and a
strategy may be developed and implemented.
Those seven elements are distinguished as Hard S’s and Soft S’s. The hard elements i.e.,
Structure, Staff and System are feasible and easy to identify. They can be found in strategy
statements, corporate plans, organizational charts and other documentations.
The Four soft S’s i.e., Shared Value, Skills, Strategy and Style are hardly feasible. They are
difficult to describe since capabilities, values and elements of corporate culture are continuously
developing and changing. They are highly determined by the people at work in the organization.
Therefore it is much more difficult to plan or to influence the characteristics of the soft elements.
Although the soft factors are below the surface, they can have a great impact of the hard
Structures, Strategies and Systems of the organization.
The 7-S diagram illustrates the multiplicity interconnectedness of elements that define an
organization's ability to change. The theory helped to change manager's thinking about how
companies could be improved. It says that it is not just a matter of devising a new strategy and
following it through. Nor is it a matter of setting up new systems and letting them generate
improvements.
To be effective, your organization must have a high degree of fit or internal
alignment among all the 7 S. Each ‘S’ must be consistent with and reinforce the other S. All S
are interrelated, so a change in one has a ripple effect on all the others. It is impossible to make
progress on one without making progress on all. Thus, to improve your organization, you have
to master systems thinking and pay attention to all of the seven elements at the same time.
There is no starting point or implied hierarchy - different factors may drive the business in any
one organization.
3.1 STRUCTURE-
Organization has
clearly been segmented
into different business
sectors and the structure is
clearly demarcated for
empowerment with
regard to each product and/or sector of economy which are managed by independent Strategic
Business Unit as independent profit / growth centers.
CHIEF EXECUTIVE
SECRETAR M4B – S.R.
Y SUBRAMANIAN
DEPUTY CHIEF
TECHNICAL PERSONNEL EXECUTIVE
MARKETING ACCOUNTS SERVICES &
ADMINISTRATION CHI
SECRETARY
MACHIN
HYDRAU QUALITY
ERY
LIC ASSURANCE WORKS
WORKS (M2C)
3.2. SKILLS-
L&T has a very strong people-oriented process. For assessing the performance of employees
they have assessment process. For assessing the availability of future leaders, they have
leadership programs. There are a host of training programs – (both internal and external)
covering performance-oriented development programs, technical competence, personality
development etc. which cover the entire gamut of skills required for running the organization
effectively and profitably and also develop the individual as well.
SKILL MATRIX-
SKILLS
MANAGERS
SUPERVISORS
EXECUTIVES × × × ×
TECHNICIANS × × × ×
3.3. STYLE-
Organization Culture
It is a set of some shared values, norms and belief systems that controls organization operations
and interaction with the members both inside & outside of the company.L&T Komatsu follows a
very distinct and insular culture throughout the company. The company incorporates various
activities, which help in the betterment of four factors that account for cultural differences
among the organization-
Organizational ethics
Organization structure
In L&T Komatsu Ltd Company, every employee needs to portray “officer like qualities”
which makes them different from their competitors. A unique characteristic of each
employee is that they contribute towards production and share the information to each other
as when required. The top managers are right to use organization resources. The work force
may be given rights to participate in decision making through various forums so that they can
help in achieving the goals of an organization of higher productivity, good quality and cost
reduction. The shareholders of the company are given the strongest property rights as they
own the resources of the employee and shares from profit.
Management Style
It’s all about the fundamental responsibility of employees in interacting with each department.
The leadership style followed is participative and democratic style where participation of the
employees in decision making is encouraged. It encourages the involvement of stakeholders at
all levels of an organization in the analysis of problems, development of strategies, and
implementation of solutions. Employees are invited to share in the decision-making process of
the firm by participating in activities such as setting goals, determining work schedules, and
making suggestions. The management treats the ideas and suggestions of employees with
consideration and respect. By creating a sense of ownership in the company, participative
management instills a sense of pride and motivates employees to increase productivity, more
receptive to change, in order to achieve their goals.
3.4. STRATEGY-
The company has a rolling plan called Strategic Plan which spans a period of 10 years. The
strategic plans are dove-tailed to the company’s Mission and Vision statements. The plans are
reviewed annually and changes / course-corrections carried out in regard to additions of new
products to its portfolio, in line with the changing business and economic environment .The
present strategic plan is as follows.
the like and they finally see through that no employee leaves the organization. This automatically
adds up value to the organization.
3.5. SYSTEMS-
Being a professionally managed organization since 1938, there are separate Divisional
Boards to oversee/supervise the operations of each Operating Division. Further, there are sector
wise business meetings to take stock of the business parameters and take corrective action
wherever required. L&T has a very strong communication network for propagating company’s
plans, policies and procedures in order to keep everybody informed.
In L&T Komatsu, a number of software applications for different functions are provided by
Oracle. They are as follows.
Inventory
Bills of Material
Costing
Purchasing
Receiving
Physical Attributes
General Planning
MPS/MRP Planning
Lead Times
Work in Process
Order Management
Invoicing
Service
GroupWise LAN.
MANAGING EXPECTATIONS
3.6.STAFF-
In L&T Komatsu Employees are categorized as below.
C – Covenant Category
MK – Japanese Representative
TOTAL 656
Values of the organization are mainly grouped into three main categories which are represented
below,
STRENGTHS-
Effective supervision.
High capability of product development which has been proved by the development of 12
ton excavator and upgrading 20,30,60 ton class to improve reliability and productivity.
WEAKNESSES-
OPPOURTUNITIES-
Government projects like river linking, road linking, laying of optical fibers, etc.
Mining.
Introduction of new model (E.g.; PC200 is modified with the introduction of new attachment like
microprocessor control, which reduces vibration and enhances operator comfort)
THREATS-
BALANCE SHEET
Particulars 2008-09 2007-08 2006-07 2005-06 2004-05
Equity 2516866025.00 1477330074.00 1281839153.000 1200000000.00 1200000000.00
Debt 1939423106.00 562805129.00 859539837.00 893875000.00 993589451.00
Capital 4522876775.00 2040135203.00 2141378990.00 2093875000.00 2193589451.00
Gross Block Fixed Assets 2013311599.00 1690108925.00 1681849538.00 1672341875.00 1641924097.00
Less: Depreciation 1016366831.00 839465950.00 727582639.00 614646683.00 504988734.00
Net Block Fixed Assets 996944768.00 850642975.00 954266899.00 1057695192.00 1136935363.00
Capital Work In Progress 64307464.00 6175549.00 890000.00 8618539.00 6983437.00
Current Assets
Inventories 2898541865.00 1239846883.00 884070009.00 542903516.00 492178885.00
Sundry Debtors 1273172989.00 946487381.00 1049240174.00 604326333.00 527029334.00
Cash and Bank Balances 1512611.00 42857550.00 8903244.00 71384648.00 802332.00
Loan and Advances 621868352.00 387648776.00 150408409.00 127629532.00 98831391.00
Total Current Assets 4795095817.00 2616840590.00 2092621836.00 1346244029.00 1118841942.00
Less: Current Liablities 1348281545.00 1470518208.00 1020281147.00 531015732.00 387763098.00
Working Capital 2098532727.00 1146322382.00 1072340689.00 815228297.00 731078844.00
Net Assets 3446814272.00 2003140906.00 2027497588.00 1881542028.00 1874997644.00
Ratio analysis is one of the powerful tools used in financial statement analysis. Ratio is defined
as “the indicated quotient of two mathematical expressions” and as “the relationship between
two or more things.”
ANALYSIS OF RATIOS-
a. CURRENT RATIO-
In a span of 4 years we can notice that the current ratio was declining and it suddenly increased.
As per convention a current ratio of 2:1 is preferred. In the year 2008-2009 the current rati is
3.55:1 , which is a great improvement from the previous years 1.78:1, which is slightly less than
the convention. In the year 2006-07 current ratio is almost equal to the convention, and in rest of
the years its more than 2:1.The current ratio represents the margin of safety for creditors. The
higher the current ratio, the greater the margin of safety, larger the amount of current assets in
relation to current liabilities, the more the firm’s ability to meet current obligations. It is possible
to conclude that company is in the position to meet its obligations if occurred.
b. QUICK RATIO-
c. DEBT-EQUITY RATIO-
Debt is fallen compared to the previous year. This means that the company has paid back its long
term debts. Debt-Equity Ratio has slightly increased compared to the previous year.
It is the measure of firm’s liquidity. The ratio is in the increasing order. It shows the firm’s
potential reservoir of fund is increasing
6. LEARNING EXPERIENCE-
My experience in L&T KOMATSU LIMITED was good and worthwhile as I learned many of
the H.R related concepts that were important during the time of execution. It helped me a lot to
relate my theory knowledge to the practical work.
Major function of the department was to maintain the attendance recording system for the
employees. Entering the leave records according to the leaves applied by them or number of
absentees also is part of the ARS. It was nice to see that all were supportive and experienced in
carrying out the work. I even shared the regular work that has to be done everyday and learnt
how to be a HR person in the company.
The department takes care of other functions such as social responsibilities towards society by
conducting donation camps in rural places. The department follows both manual and
computerized work for the future proof. I learned how to be interactive with employees in
different departments.
The company believes in quality and technology advancement. It has a healthy work
environment.
The practical work is slightly different from theory and is different for different companies. The
rules and responsibilities are to be verified time to time to have control and to maintain good
work atmosphere in the company. For all other supportive work, HR department is the path and
is important for such activities.
I learned how to overcome problems without conflicts which arise from workers and others. It is
important to have communication with all departments to receive the data in time and to
maintain good relations with workers and employees
Altogether it was a great experience in L&T KOPMATSU LIMITED , where I learned about
many HR activities and how a HR manager plays a vital role in the organization through various
functions. .
PART-B
1, INTRODUCTION
The term refers to the favourableness or unfavourableness of a total job environment for
people. QWL programs are another way in which organizations recognize their responsibility to
develop jobs and working conditions that are excellent for people as well as for economic
health of the organization. The elements in a typical QWL program include – open
communications, equitable reward systems, a concern for employee job security and satisfying
careers and participation in decision making. Many early QWL efforts focus on job enrichment.
In addition to improving the work system, QWL programs usually emphasize development of
employee skills, the reduction of occupational stress and the development of more co-operative
labour-management relations.
Human resource departments are involved with efforts to improve productivity through
changes in employee relations. QWL means having good supervision, good working conditions,
good pay and benefits and an interesting, challenging and rewarding job. High QWL is sought
through an employee relations philosophy that encourages the use of QWL efforts, which are
systematic attempts by an organisation to give workers greater opportunities to affect their jobs
and their contributions to the organisation’s overall effectiveness. That is, a proactive human
resource department finds ways to empower employees so that they draw on their “brains and
wits,” usually by getting the employees more involved in the decision-making process.
• Process
The whole essence of QWL may be stated thus, the QWL is co – operative rather than
authoritarian; evolutionary and open rather static and rigid; informal rather than mechanistic;
QWL means having good supervision, good working conditions, good pay and benefits an
interesting and challenging, and a rewarding job. The major factors that effect the QWL may be
stated thus.
1.Pay
QWL is basically built around the concept of equitable pay. In the days ahead, employees may
want to participate in the profits of the firm as will. Employees must be paid their due share in
2.Benefits
Workers throughout the globe have raises their expectations over the years and now feel entitled
3.Job Security
Employees want stability of employment. They do not like to be the victims of whimsical
4.Occupational Stress
Occupational mental-health programmes dealing with stress are beginning to emerge as a new
and important aspect of QWL programmes. Obviously, and individual suffering from an
uncomfortable amount of job-related stress cannot enjoy a high quality of work life. '
5.Worker Participation
Employees have a genuine hunger for participation in organizational issues affecting their lives.
Naturally they demand far more participation in the decision making process at the workplace.
6.Social Integration
The work environment should provide opportunities for preserving an employee's personal
identify and self-esteem through freedom from prejudice, a sense of community, interpersonal
A person's work should not overbalance his life. Ideally speaking, work schedules, career
demands and other job requirements should not take up too much of a person's leisure time and
family life.
8.Freedom
Beside signing jobs systems and structures to give people more freedom at work.
9.Reinforcement
Creating reward systems that are fair, relevant and contingent on work performance
10.Responsiveness
Making the work setting more pleasant and able to serve individual Needs.
QWL deals with the relationship between every employee and his or her work organization. This
"Psychological contract is the set of expectations held be the individual specifying what the
individual and the organization expect to give and receive from each other in the course of their
working relationship". This contract represents the expected exchange of values that encourages
the individual to work for the organization and motivates the organization to employ that person,
A healthy psychological contract means that inducements and contributions are balance.
INDUCEMENTS = CONTRIBUTIONS
This is the way for organization to create healthy psychological contract and Jobs
satisfaction for their members is to provide them with High QWL environment.
• High Productivity
• High morale .
1.3. OBJECTIVES-
serves as a successful means of measuring and acting upon employees current beliefs on many
job related subjects.
Hence this study is undertaken so as to determine the quality of work life at LTK and to
determine the various factors that affect the quality of work life and finally to identify the factors
that contributes towards increasing the level of quality work life.
the satisfaction of worker needs..The concept of welfare emanates from the fact that happy and
satisfied employees do always and invariably produce quality products to satisfy both internal
With this point in view, L&T’s philosophy with regard to extending welfare facilities for
“Let the company be prosperous, so that the prosperity can be shared with the employees by
. Some of the welfare activities adopted at L&T KOMATSU LTD. are. as follows-
Non-Statutory Statutory
5 Family Planning
• Manned by a male nurse – round the clock service – trained in CPR (cardio -
pulmonary resuscitation )
• Guest lectures are also conducted on special subjects like family planning, HIV/AIDS,
• Availed by
personal problems
• Many more welfare activities are provided to have a good quality of work life.
1.5. METHODOLOGY
• The respondents may not have expressed them strong negative feelings about the
policies, which results in the error of central tendency.
Generally research consists of two parts, namely, the gathering of data and analysis of data.
The mass of data gathered through sophisticated tools however valid, reliable and adequate,
is yet raw unless it is carefully edited, systematically classified and tabulated, scientifically
analyzed. Intelligently interpreted and rationally concluded. The analysis and interpretation
of data involves the objective material in the possession of the researcher and subjective
reactions to drive from the data. Analysis and interpretation represents the application of
deductive and inductive logic to the research process.
ANALYSIS
Analysis means breaking down the complexity of the structure with simpler elements and
putting these elements together in new combinations or patterns so as to discover new
relationships. This can be achieved only by viewing data from different angles and by
representing the data adequately.
INTERPRETATION
Interpretation refers to the starting of what the findings depict what they mean their
significance and help in drawing the answer to the original problem.
Interpretation of the analyzed data requires considerable skill and experience. It is a purely
subjective process. Hence, interpretation calls for a critical examination of the results of
one’s analysis in the light of all the limitations of his data gathering.
55
L&T KOMATSU LIMITED
CLASSIFICATION OF TABULATION
2. Gender.
Male Female
Gender 100 -
INFERENCE-
All the respondents are male since the sample was taken from the hydraulic shops. Being a
heavy machinery production company very few women are employed in this company unit.
56
L&T KOMATSU LIMITED
3. Age.
INFERENCE-
Majority of the employees are experienced and fall in the age group 41-50.
57
L&T KOMATSU LIMITED
4. Experience.
INFERENCE-
All the employees have a minimum experience of 10 years.75% of them have an experience of
10-20 yrs and 25% have an experience of 20-30 years. So we notice here that most of the
employees are experienced hence increasing performance.
58
L&T KOMATSU LIMITED
5. Income level.
INFERENCE-
25% of the respondents have an income between Rs 10,000-15,000 , 60% between Rs15,000-
20,000 and the remaining 15% have above 20,000.Income plays a very important role in
employee satisfaction.
59
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree 0
Agree 72%
Neutral 20%
Disagree 8%
Strongly disagree
1NFERENCE
The above graph reflects that a majority of 72% of respondents agreed that their job enables
them to use their skills and abilities in full. While a 8% disagreed to this , a 20% of the response
was neutral . hence it can be inferred that the work in the company is such that it allows almost
all the workers to use their skill and ability in full.
60
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree 0%
Agree 60%
Neutral 8%
Disagree 32%
Strongly disagree 0%
INFERENCE
The above table shows that 60% of the respondents agree that there is equal treatment at work
place. A 5% are neutral , and a 32% disagreed with this. Thus it can be concluded that the
organization provides equal treatment at work place to some extent. If there is no proper equal
treatment it demotivates the employee. It is a very important factor in determining the quality of
work life in an organization.
61
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree 0%
Agree 100%
Neutral 0%
Disagree 0%
Strongly disagree 0%
INFERENCE
From the above graph it is clear that 100% of the respondents feel that the conditions on their job
allow them to be productive. Thus it is clear that the conditions on the job are congenial to raise
the productivity of the workers which is very essential for both the management and workers to
achieve their objectives of higher productivity.
62
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 64%
Neutral 20%
Disagree 16%-
Strongly disagree -
INFERENCE
The above graph reflects that 64% of respondents agree that there are opportunities in the
company to develop special abilities.a 20% are neutral , while a 16% disagree to this. Hence it
can be inferred that the opportunities available in the workplace to develop the special abilities of
the employees is satisfactory. No doubt , the improvement of special abilities would definitely
improve the quality of work life in the organization.
63
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 92
Neutral 8
Disagree -
Strongly disagree -
INFERENCE
The table reflects that 92% of the respondents agree that the organization provides enough
guidance to get the job done while 8% are neutral. Hence it can be inferred that guidance at work
, which is essential for the quality of work life is provided at LTK.
64
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 20
Neutral 68
Disagree 8
Strongly disagree -
INFERENCE
The table reflects that 20% agreed that the organization provides high quality tools to do
the job. A 68% remained neutral , a 8% disagreed and a 4% strongly disagreed. Thus it can be
concluded that there is positive attitude towards the provision of tools.
65
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 4
Neutral 52
Disagree 20
Strongly disagree 24
INFERENCE
The above table shows that only a mere 4% are satisfied with the oppourtunities for promotion.
A 52% are neutral ,20% disagreed and a 24% strongly disagreed. Hence it can be concluded that
the chances for promotion are not attractive among the employees.
66
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 8
Neutral 84
Disagree 8
Strongly disagree -
INFERENCE
The above table reflects that only 8% of the respondents agreed that the safety of workers
is at high priority. While a major 84% remained neutral , 8% disagreed to this. Hence it can be
concluded that the safety towards the employees need to be concentrated highly to ensure safe
and secured work life.
67
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 12
Neutral 88
Disagree -
Strongly disagree -
INFERENCE
The above graph reflects that 12% of the respondents agreed that the infrastructure
facilities at LTK are good , 88% are neutral.
68
L&T KOMATSU LIMITED
Facilities Yes No
First aid 88 12
Lightening 100 -
Ventilation 84 16
Drinking water 88 12
Hygienic conditions 88 12
Spacious work place 68 32
Toilets 80 20
INFERENCE
The above table reflects that 88% of the respondents are satisfied with the first aid ,
drinking water and hygienic conditions. 100% are satisfied with lightening , 84% are satisfied
with ventilation , 68% feel that the workplace is spacious and 80% are satisfied with the toilet
facilities.
69
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 80
Neutral 8
Disagree 12
Strongly disagree -
INFERENCE
The above table reflects that a majority of 80% of the respondents agreed that they are
recognized in the company and 8% are neutral and the remaining 12% disagreed.thus a majority
of the employees feel that they are recognized by the company. This helps in creating a better
and healthy work life and motivates the employees .
70
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 44
Neutral 44
Disagree 4
Strongly disagree 8
INFERENCE
From the above table we can infere that the employees are satisfied with the
compensation schemes adopted in their company. A 44% of the respondents agreed that they are
satisfied , 44% of them had no opinion , 4% disagreed , and 8% are not at all happy with the
compensation schemes adopted. . so we can conclude that in general the employees are happy
with the compensation schemes adopted at LTK.
71
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree 12
Agree 68
Neutral 12
Disagree 8
Strongly disagree -
INFERENCE
The above table shows that 12% of the workers strongly feel that there is security for
their job , 68% agreed with this , 12% are neutral , and only 8% feel that there is no security for
their job. Job security is the vital factor to accecc the quality of the work life in any organization.
Since the job security in the study sample ensures that there are majority chances for good
performance and as a result the quality of work life is up to the expectation.
72
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 68
Neutral 32
Disagree -
Strongly disagree -
INFERENCE
The above table reflects that the helping tendency of the supervisor is up to the
expectations of the respondents. 68% agreed that their supervisors are lending their helping
hands always and the remaining 32% are neutral. The helping tendencies of the supervisors
determine the quality of work life in any organization , and it is up to the expectation level of the
workers in the study sample.
73
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree 8
Agree 76
Neutral 8
Disagree 8
Strongly disagree -
INFERENCE
The above table reflects that there are good relations among the employees at LTK . 8%
of the respondents strongly felt that there are good relations with their collegues , 76% agreed
with this , 8 % are neutral , and the remaining 8% felt that their relationship with their collegues
is not good. Thus in general th relationship between the peers is satisfactory at LTK which
creates a healthy work life and better productivity.
74
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 88
Neutral 12
Disagree -
Strongly disagree -
INFERENCE
88% of the respondents agreed that there are good relations with their supervisor , 12%
are neutral. Thus in general the relationship[ between the superior and the subordinates is
satisfactory and up to the expectations. This leads to an expected qwality of work life as the
superior – subordinate relation plays a vital role in determining the quality of work life in an
organization.
75
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree 8
Agree 68
Neutral 24
Disagree -
Strongly -
disagree
INFERENCE
The above table states that 8% of the workers strongly accept that there are training
opportunities which helps them to perform their job safely and competently. 68% of the
respondents accept to some extent that the training opportunities are available and helpful . the
remaining 24% are neutral. Training is very essential for quality of work life in any organization.
The training opportunities offered in the company are up to the expectations of the workers at
presents.
76
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree 8
Agree 20
Neutral 52
Disagree 20
Strongly disagree -
INFERENCE
The above table reflects that all the employees are of the opinion that their work is
stresssfull. Among them 8% of the employees opinioned that the stress is always there in the
work and a 20% feel that they often find their work stressfull. A 52% statedthat their stress is
manageable and 20% felt that their work is stressful sometimes and not always. Hence it can be
inferred that the work is stressful one , though manageable , if allowed uncontrolled will spoil
the quality of work .
77
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 40
Neutral 16
Disagree 44
Strongly disagree -
INFERENCE
The above table atates that 40% are satisfied with their pay , 16% are of no opinion , and
44% are not satisfied with their pay. Thus we can infere that a considerable number of
employees are unhappy with their pay and this may have a negative effect on the quality of work
life and motivation to work.
78
L&T KOMATSU LIMITED
Percentage of respondents
Strongly agree -
Agree 80
Neutral 20
Disagree -
Strongly disagree -
INFERENCE
The above table shows that 80% of the respondents felt that thrie supervisor accept their
suggestions and get positive motivation for them.the remaining 20% are neutral.they may not
have come across such experience. Though there is no need for the supervisor to accept all the
79
L&T KOMATSU LIMITED
suggestions offered by the workers , yet they shall be motivated by just considering their
suggestions . thus we can see a healthy work life at LTK.
Percentage of respondents
Strongly agree -
Agree 64
Neutral 24
Disagree 12
Strongly disagree -
INFERENCE
80
L&T KOMATSU LIMITED
The above table reflects that 64% of the respondents are satisfied with the transparency
level at LTK , 24% are neutral and 12% are not satisfied with the transparency level .so we can
conclude that a majority are happy with the transparency level maintained at the company.
Percentage of respondents
Strongly agree 8
Agree 56
Neutral 28
Disagree 8
Strongly disagree -
INFERENCE
The above table reflects that 8% of the respondents strongly agree that their family
members feel associated with the company, 56% agreed , 28% are neutral and the remaining 8%
felt that their family members are not associated with the company. So in general the association
81
L&T KOMATSU LIMITED
of the family members of the employees of the company is satisfactory. The employees family
members are made part of the company through various activities like picnics, competitions and
other activities. This leads to a healthy and satisfactory work life at LTK.
Percentage of respondents
Strongly agree 20
Agree 68
Neutral 12
Disagree -
Strongly disagree -
INFERENCE
82
L&T KOMATSU LIMITED
The above table reflects that the employees have a good balance between their work life
and personal life. 20% strongly agreed that the balance between their work life and personal life
is good , 68% agreed, and the remaining 12% are neutral. This shows that there is a good balance
between work and personal life among the employees. The better the balance , the better is the
quality of work life.
Percentage of respondents
Strongly agree 8
Agree 72
Neutral 20
Disagree -
Strongly disagree -
83
L&T KOMATSU LIMITED
INFERENCE
From the table we can infere that the employees are of the opinion that the family
members of the employees take pride of them being a part of LTK. 8% strongly agreed, 72%
agreed, and the remaining 20% are neutral.
Percentage of respondents
Strongly agree 20
Agree 76
Neutral 4
Disagree -
Strongly disagree -
INFERENCE
The above table shows that most of the workers are of the opinion that they are proud to work in
LTK. 20% strongly agreed that they are proud to to be part of LTK, 76% agreed, and the
84
L&T KOMATSU LIMITED
remaining 4% are neutral. Thus the image of the company in the minds of the workers is very
high, which is very essential for improving the quality of work life in it.
3. FINDINGS
• A majority of 72% of respondents agreed that their job enables them to use their skills and
abilities in full. While a 8% disagreed to this , a 20% of the response was neutral . Hence
the work in the company is such that it allows almost all the workers to use their skill and
ability in full.
• 60% of the respondents agree that there is equal treatment at work place. A 5% are
neutral , and a 32% disagreed with this. Thus it can be concluded that the organization
provides equal treatment at work place to some extent.
• All the respondents feel that the conditions on their job allow them to be productive. Thus
it is clear that the conditions on the job are congenial to raise the productivity of the
workers which is very essential for both the management and workers to achieve their
objectives of higher productivity.
• The opportunities available in the workplace to develop the special abilities of the
employees and to get the job done are satisfactory.
• A minor 20% agreed that the organization provides high quality tools to do the job. A
68% remained neutral , and a 8% disagreed and a 4% strongly disagreed. Thus it can be
concluded that there is no positive attitude towards the provision of tools.
• Only a mere 4% are satisfied with the oppourtunities for promotion. Hence it can be
concluded that the chances for promotion are not attractive among the employees..
• A majority of the employees are satisfied with the welfare facilities provided like first aid ,
lightening , ventilation , drinking water , hygienic conditions , spacious work place ,
toilets etc..
• The employees are satisfied with the compensation schemes adopted in their company. A
44% of the respondents agreed that they are satisfied , 44% of them had no opinion , 4%
disagreed , and 8% are not at all happy with the compensation schemes adopted.
• Job security is the vital factor to assess the quality of the work life in any organization.
Since the job security in the study sample ensures that there are majority chances for
good performance and as a result the quality of work life is up to the expectation..
• There are good relations among the employees at LTK . 8% of the respondents strongly
felt that there are good relations with their collegues , 76% agreed with this , 8 % are
neutral , and the remaining 8% felt that their relationship with their collegues is not good.
Thus in general the relationship between the peers is satisfactory at LTK which creates a
healthy work life and better productivity.
• The superior – subordinate relation plays a vital role in determining the quality of work
life in an organization. 88% of the respondents agreed that there are good relations with
their supervisor , 12% are neutral. Thus in general the relationship[ between the superior
and the subordinates is satisfactory and up to the expectations.
85
L&T KOMATSU LIMITED
• 8% of the workers strongly accept that there are training opportunities which helps them
to perform their job safely and competently. 68% of the respondents accept to some
extent that the training opportunities are available and helpful . the remaining 24% are
neutral.
• Most of the employees are of the opinion that their work is stresssfull. , though
manageable , if allowed uncontrolled will spoil the quality of work .
• A considerable number of employees are unhappy with their pay and this may have a
negative effect on the quality of work life and motivation to work.
• A majority of 80% of the respondents felt that their supervisors accept their suggestions
and get positive motivation for them..The remaining 20% are neutral as .they may not
have come across such experience.
• 64% of the respondents are satisfied with the transparency level at LTK , 24% are neutral
and 12% are not satisfied with the transparency level .so we can conclude that a majority
are happy with the transparency level maintained at the company.
• The association of the family members of the employees of the company is satisfactory.
The employees family members are made part of the company through various activities
like picnics, competitions and other activities. This leads to a healthy and satisfactory
work life at LTK.
• There is a good balance between work and personal life among the employees. The better
the balance , the better is the quality of work life..
• Most of the workers are of the opinion that they are proud to work in LTK. 20% strongly
agreed that they are proud to to be part of LTK, 76% agreed, and the remaining 4% are
neutral. Thus the image of the company in the minds of the workers is very high, which is
very essential for improving the quality of work life in it.
86
L&T KOMATSU LIMITED
CONCLUSION
The management plays a very important role in making the Company achieve success in
domestic and world markets. To be the best, the company focuses on providing a great quality of
work life to its employees.
From the study, it is clear that quality of work life of employees in L&T KOMATSU Pvt
Ltd., is good. This research highlights some of the small gaps in employee’s satisfaction towards
the company.
L&T KOMATSU Pvt Ltd aims to promote the peaceful industrial relations and good
organization which is highlighted by management and the employees. Since employees are the
backbone of the company they should be satisfied in order to improve the business in the higher
competitive market of the liberalized economy.
The employees’ across different levels of management are satisfied by their association
with the organization, the leadership styles of the managers and supervisors, work culture ,the
interpersonal relationships, welfare facilities and other factors that motivate employees to
perform their responsibilities efficiently. But , however little dissatisfaction is there regarding the
promotion policy, pay package, equal treatment at work place and the quality of tools provided.
So the company should look into these matters and take corrective action as these are critical to
the quality of work life.
The company believes in employee’s satisfaction and effective productivity hours.
Quality mission includes not only the quality of the products but also the Quality of Work Life.
87
L&T KOMATSU LIMITED
ANNEXURE
12. QUESTIONAIRE
I am Mahita doing my project here on the topic quality of work life.Please kindly spare your
precious time to fill this questionnaire which would be of great help for my project.This
information will be kept highly confidential and would be used only for academic purpose.
Note - Please tick in the appropriate boxes
1.Name-
3.Age
5. Income level
Rs5000-Rs10,000 Rs10,001-Rs15,000 Rs15,001-Rs20,000 above Rs20,000
6. Does your job enable you to use your skills and abilities in full?
Strongly agree Agree Neutral Disagree Strongly disagree
10. Does your organization provide enough guidance to get the job done?
Strongly agree Agree Neutral Disagree Strongly disagree
11. Does your organization provide high quality tools to do the job?
Strongly agree Agree Neutral Disagree Strongly disagree
88
L&T KOMATSU LIMITED
17. Are you satisfied with the compensation schemes adopted at L.T.K?
Strongly agree Agree Neutral Disagree Strongly disagree
89
L&T KOMATSU LIMITED
28. Is the balance between your work life and personal life good?
Strongly agree Agree Neutral Disagree Strongly disagree
29. Do your family members take pride of you being a part of L.T.K?
Strongly agree Agree Neutral Disagree Strongly disagree
90
L&T KOMATSU LIMITED
13. BIBLIOGRAPHY
1. Books:
1. K. Aswathappa and Subbarao, “Human Resource Management”
2. S.P Jain, Narang, “Management Accounting”
2. Periodicals:
1. L & T Bangalore Blooms – Annual Magazine Of L&T-Komatsu
3. Internet.
91