HR Project on Employee State Insurance at HSN International, Haridwar. HSN International is a pharmaceutical industry they are manufacturing the capsule and tablets. 31-8-2013

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A SUMMER TRAINING PROJECT
REPORT ON
“EMPLOYEE STATE INSURANCE (ESI)”
at
HSN INTERNATIONAL
Plot No. 54-55, Sec 6A, I.I.E. Sidcul, Haridwar (Uk) 249403 INDIA
Submitted In Partial Fulfillment of the Requirement
For The Award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Batch 2012-2014
Conducted By:-
GURUKULA KANGRI VISHWAVIDYALAYA
Under the Supervision of : Submitted By:
Rajesh Bhorney Mohd. Tanveer
HR Manager MBA 3rd
Sem
Haridwar (Uttarakhand)
DEPARTMENT FACULTY OF MANAGEMENT STUDIES (FMS)
GURUKUL KANGRI UNIVERSITY HARIDWAR-249407

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PREFACE
The conceptual knowledge acquired by management students is
best manifested in the projects and training they undergo. As a Part of
curriculum of MBA, I have got a chance to undergo Practical training
in.
The project report entitled “EMPLOYEE STATE INSURANCE”
is based on theme of HSN performance on the basis of economic value
addition made by the HSN in the last 3 years. The report will provide
all the information regarding the employee state insurance and their
importance in .
I also hope that this report will be beneficial for my next batches
and for those who are related to this topic.

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ACKNOWLEDGEMENT
First and foremost to my project head MR. RAJESH BHORNEY HR
Manager, for providing me the opportunity to work on this project under
his able and dynamic guidance. I fully express my deep gratitude to my
project head Mr. Rajesh Bhoreny for this project and make me
understand what this project is all about.
For his generous assistance in the accomplishment of the project, I
would like to acknowledge the exceptional team at for their superb
guidance.
Mohd. Tanveer

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DECLARATION
I hereby declare that the Summer Training work “EMPLOYEE STATE
INSURANCE” has been authentic work done by me. It may therefore, be
considered for the partial fulfilment for the award of the degree of
Master of Business Administration.
Mohd. Tanveer

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TABLE OF CONTENTS
CHAPTER NO. SUBJECT
1.0 FRONT PAGE
2.0 CERTIFICATE
3.0 PREFACE
4.0 ACKNOWLEDGEMENT
5.0 DECLARATION
6.0 TABLE OF CONTENT
7.0 EXECUTIVE SUMMARY
8.0 INDUSTRIAL PROFILE
9.0 COMPANY PROFILE
REVIEW OF LITERATURE ON THE INDUSTRY
MAJOR COMPANY
SWOT ANALYSIS
10.0 OBJECTIVE OF THE STUDY
11.0 ESI (EMPLOYEE STATE INSURANCE)
INTRODUCTION OF ESI ACT 1948
HISTORY
BENEFITS
APPLICABILITY
SCHEME HELPS EMPLOYEES
REGISTRATION PROCEDURE
12.0 RESEARCH AND DEVELOPMENT
13.0 LITERATURE REVIEW
14.0 RESEARCH METHODOLOGY
15.0 RESULTS
16.0 FINDINGS
17.0 CONCLUSION
18.0 RECOMMENDATIONS
19.0 LIMITATIONS
20.0 BIBLIOGRAPHY
21.0 QUESTIONNAIRE

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EXECUTIVE
SUMMARY

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Executive Summery
The project titled “EMPLOYEE STATE INSURANCE ” undertaken in . is a
Pharmaceutical firm. This company is working for CIPLA, RANBEXY, LUPIN, and
ABBOTT. This company manufacture the medicine like Lupisulide-P, Lupipara-500,
Lupispas plus, Couf-Q, Aspro, Maxofen plus, Roniflam, Defenac-P, Welset.
The project report is about ESI which is an important part of any organization. This is
considered as a necessary asset of a company. In fact, ESI gives a home ground to the
organization acumen that is needed for proper functioning of the organization.
The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation
enacted primarily with the object of providing certain benefits to employees in case of
sickness, maternity and Employment injury and also to make provision for certain others
matters incidental thereto. The Act in fact tries to attain the goal of socio-economic justice
enshrined in the Directive principles of state policy under part 4 of our constitution, in
particular articles 41, 42 and 43 which enjoin the state to make effective provision for
securing, the right to work, to education and public assistance in cases of Unemployment, old
age, sickness and disablement. The act strives to materialize these avowed objects Through
only to a limited extent. This act becomes a wider spectrum then factory act. In the sense that
while the factory act concerns with the health, safety, welfare, leave etc of the workers
employed in The factory premises only. But the benefits of this act extend to employees
whether working inside the factory or establishment or elsewhere or they are directly
employed by the principal employee or through an intermediate agency, if the employment is
incidental or in connection with the factory or Establishment.

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In this project I have tried to analyses some important questions
To know how the employees Insurance is practically conducted in the
organization.
To know how employees Insurance is devised.
To know what kind of HR policies followed in the organization.
To know what kind of benefits are given to all employees.
To know the effectiveness of employees Insurance.
To know how the employee gets the benefits of ESI.
The ever expanding industrial horizon and reciprocal uprising of labor consciousness
necessitate the employee and employer to be Conversant with the current labor legislation
that govern their relationship, rights and obligation.
-----

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INDUSTRY
PROFILE

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The Indian Pharmaceutical Industry today is in the front rank of India‟s science-based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. From simple headache pills to sophisticated antibiotics and complex cardiac
compounds, almost every type of medicine is now made indigenously.
In terms of volume India's pharmaceutical industry is now the third largest in the
world. Its rank is 14th in terms of value. Between September 2008 and September 2009, the
total turnover of India's pharmaceuticals industry was US$ 21.04 billion. The pharmaceutical
industry is growing at about 8 to 9 percent annually.
Leading Pharmaceutical Companies
In the domestic market, Cipla retained its leadership position. Ranbaxy followed next.
Other leading companies in the Indian pharma market in 2010 are:
Sun Pharma (25.7%)
Abbott (25%)
Zydus Cadila (24.1%)
Alkem Laboratories (23.3%)
Pfizer (23.6 %)
GSK India (19%)
Piramal Healthcare (18.8 %)
Lupin (18.6 %)
Characteristics of Indian Pharmaceutical Industry
The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units. The pharmaceutical industry in India meets around 70% of the country's
demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets,
capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale
Units, which form the core of the pharmaceutical industry in India (including 5 Central
Public Sector Units). Manufacturers are free to produce any drug duly approved by the Drug
Control Authority. Technologically strong and totally self-reliant, the pharmaceutical
industry in India has low costs of production, low R&D costs, innovative scientific
manpower, strength of national laboratories and an increasing balance of trade.
Classification
A sampling of classes of medicine includes:
Trentyxicyls: reducing headache (sexual appetite/erectile disfunction)
Antipyretics: reducing fever (pyrexia/pyresis)
Analgesics: reducing pain (painkillers)
Antimalarial drugs: treating malaria
Antibiotics: inhibiting germ growth
Antiseptics: prevention of germ growth near burns, cuts and wounds

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This industry is manufacturing the capsules, tablets and cough syrup. They are mainly
manufacturing the Antipyretics and Analgesics. Under that category they are manufacturing
the Lupisulide-P, Lupipara-500, Lupispas plus, Couf-Q, Aspro, Maxofen plus, Roniflam,
Defenac-P, Welset.
Supply that tablets and capsules for Cipla, Ranbexy, Lupin and Abbott.the total
turnover of is 40 to 45 crore.
SWOT Analysis
Strengths:
• Population
• Cost
• Man Power
• World-class process development labs
Weakness:
low barriers to entry
Production of duplicate drugs
Lack of strategic planning
Ability of trend workers
Opportunity:
Foreign market
Threats:
o Competition from MNCs
o Government policy

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COMPANY
PROFILE

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HSN is a healthcare company in Haridwar, Uttarakhand (INDIA) established and
formed in the year 2007 by Mr. H S Nag & Mr. Deepak Jain.
Sprawled over an area of about 32400 sq. ft. HSN is an independent state of the art
manufacturing unit having huge capacity to manufacture million tablets and capsules per day.
They are an emerging Pharmaceutical firm with an aim to provide the purest form of
medicines at an affordable price. They are focusing towards making the life healthier. There
work as it is not just health care but it has everything to do with human care.
Mission
To place ourselves on top of this Parma industry with innovative approaches and
providing top class services to our clients. Further to strive hard to ensure the sustainability
through our constant efforts and innovation.
Value
We are passionate about improving the standard of living and saving life. We value
our work as it is not just health care but it has everything to do with “Human Care”.
Production Department
The production department of comprises of systematically built process
areas/sections having hi-tech modernalised machineries confirming to the highest

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manufacturing demands of quality, speed and precision and manned by technocrats and well
trained persons.
The main production activity is confined to manufacture of Tablets, Capsules, Oral
liquids and Ointments. These include generic/ Pharmacopoeia products and Patent products.
Quality Assurance
The quality assurance department of is amongst those of very few companies who
have earned for themselves a niche the field of national/international quality. This is
consistent endeavor which is achieved by exercising strict check at each and every stage of
on floor manufacturing and packing.
All evaluation of procedures and validations are done by the Quality Assurance
Department.
Quality Control
The quality control of is equipped with the latest and most sophisticated instruments
and equipments meets to national and international quality standards. The quality tests from
the starting Raw/Packing material to semi-finish/finished product at each and every step as
per the Pharmacopoeia standards to confirm the quality and purity. Specifications, Standard
Test Procedures and Method of analysis are prepared by Quality Control & finally reviewed
and issued by Quality Assurance.
Stores
All raw and packaging materials are received at the stores & separate storages areas
available for receiving material, under test material, approved material & rejected material.
All materials are stored in respective warehouse as per the stored in respective warehouse as
per the storage conditions prescribed by the manufacture.

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Utility
Air Handling Units are provided for each and every operational area in a way to avoid
the cross contamination. Each floor has separate air handling unit with the pressure balancing
arrangement to eliminate any possible cross contamination of the products.The corridors are
also environmentally controlled and are at positive pressure as compared to the individual
rooms to prevent any ingress of air/powder from each room to the corridors. The individual

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process area is designed to have a temperature varying from 25o
C, 2o
C and relative humidity
less than 45% RH.
The purified water plant and distribution system as per WHO norms.
Major Company
Rohini Chemical Limited
SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and
weaknesses are internal factors. Opportunities and threats are external factors. We can control
the strengths and weaknesses while opportunities and threats can‟t be control.
Strengths:
Cost advantages
Quality
Raw material in bulk
Good reputation among the suppliers
Weaknesses:
Ability of Labors
Transportation
Labor Union
Opportunities:
Removal of Trade barriers
Threats:
Increasing intradebarriers
Taxation may be introduced
Criteria of Labors
Labors Strikes (Labor Unions in Sidcul Area)

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OBJECTIVE
OF THE STUDY

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OBJECTIVE OF THE STUDY
The main objectives of the study to understand the implementation employees
State Insurance act in an organization.
o To know how the employees Insurance is practically conducted in the
organization.
o To know how employees Insurance is devised.
o To know what kind of HR policies followed in the organization.
o To know what kind of benefits are given to all employees.
o To know the effectiveness of employees Insurance.
o To know how the employee gets the benefits of ESI.

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EMPLOYEE STATE INSURANCE ACT 1948

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INTERODUCTION
Employees' State Insurance is a self-financing social security and health
insurance scheme for Indian workers. For all employees earning 15000 (US$240) or
less per month as wages, the employer contributes 4.75 percentage and employee
contributes 1.75 percentage, total share 6.5 percentage. This fund is managed by the
ESI Corporation (ESIC) according to rules and regulations stipulated therein the ESI
Act 1948, which oversees the provision of medical and cash benefits to the employees
and their family through its large network of branch offices, dispensaries and hospitals
throughout India. ESIC is an autonomous corporation under Ministry of Labor and
Employment, Government of India. But most of the dispensaries and hospitals are run
by concerned state governments.

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History
In March 1923 before Indian independence B. N. Adarkar economist and later
Governor of the Reserve Bank of India, was appointed by the Government of India to
create a health insurance scheme for industrial workers. A year later the report he
submitted became the basis for the Employment State Insurance (ESI) Act of
1948.The ESI Act was enacted in India in 1948, but come into reality from 25th
February 1952, established in Kanpur and Delhi. Initially intended for workers
working in factories and companies only. It is now applicable to all establishments
having 10 or more workers including educational institutions, hospitals, etc., covering
15.5 million employees working with about 450,000 employers. Total beneficiaries as
of 2011-12 are above 65.5 million.

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Benefits
In ESI scheme, a worker in insurable employment is called insured person (IP).
Insured persons and their family are entitled to different types of benefits. The benefits are
broadly classified into two: (1) Medical benefits and (2) cash benefits.
The employees registered under the scheme are entitled to medical treatment for
themselves and their dependents, unemployment cash benefit in certain contingencies, and
maternity benefit in case of women employees. In case of employment-related disablement or
death there is provision for a disablement benefit and a family pension, respectively. Funeral
Benefit to dependents of Insured Persons/Insured Women. Super Specialty Treatment
through Private Tie Up Network as well as through its own Super Specialty Hospitals situated
throughout India. Also ESI is constructing Medical and PG Medical, Dental Colleges in
which it has set aside certain percentage of seats for children of Insured Persons. Recently
ESI taken a decision to make the 'dependent benefit' up to a ceiling of 1200 (US$19) for all
eligible dependants of a deceased person. Through this approximately 86000 dependants got
benefit. From time to time ESI relaxes conditions for disbursement of Sickness Benefit and
Super Specialty Treatment.
Outpatient medical facilities are available in 1398 ESI dispensaries, and through
1,678 empanelled private medical practitioners. Inpatient care is available in 145 ESI
Hospitals and 42 Hospital annexes; a total of 19387 beds. In addition, several state
government hospitals also have beds for exclusive use of ESI Beneficiaries. Cash benefits can
be availed in any of 783 ESI centers logout India.
Recent years have seen an increasing role of information technology in ESI, with the
introduction of Pehchan smart cards in 'Project Panchdeep', India's largest e-governance
projec. In addition to insured workers, poor families eligible under the Rashtriya Swasthya
Bima Yojana can also avail facilities in ESI hospitals and dispensaries. There are plans to
open medical, nursing and paramedical schools in ESI hospitals.
Top Executives
Shri Anil Aggarwal is the Director General, Shri S.K.G. Rahate is the Financial
Commissioner and Shri B.N. Tripathy, IPS is the Chief Vigilance Officer.

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APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or
more persons.
Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels,
restaurants, cinemas including preview theatres, road-motor transport undertakings and
newspaper establishments employing 20* or more persons.
Further under section 1(5) of the Act, the Scheme has been extended to Private
Medical and Educational institutions employing 20* or more persons in certain States/UTs.
*Note: 14 State Govts. / UTs have reduced the threshold limit for coverage of shops and
other establishments from 20 to 10 or more persons. Remaining State Governments/UTs are
in the process of reducing the same.
The existing wage limit for coverage under the Act is Rs. 15,000/- per month ( w.e.f.
01/05/2010).

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How the scheme does help employees’?
The scheme provides full medical care to the employee registered under the scheme
during the period of his incapacity for restoration of his health and working capacity. It
provides financial assistance to compensate the loss of his/her wages during the period of his
absentation from work due to sickness, maternity and employment injury. The scheme
provides medical care to his/her family members also.

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Registration Procedure
Is it mandatory for an employer to register under the scheme?
Yes, its statutory responsibility of the employer under Section 2-A of the Act read
with regulation 10-B, to register their Factory / Establishment under ESIC Act within 15 days
from the date of its applicability to them.
What is the procedure for registration of an employer?
The Factory or Establishment to which the Act applies is to be registered by
submitting an Employer‟s registration form (Form -01) to the concerned Regional office and
obtain an identification number called the Code number (Section 2(A) read with Regulation
10-B).
What are the documents to be submitted along with the Employer’s registration
form?
Documents relating to the constitution of the Factory/Firm/Establishment/, evidence
in support of the date of commencement of production /business, list of partners / directors
with their address, address proof like pan card / passport/voter identity card/ month wise
employment position etc. are the essential documents.

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DEPARTMENTS
i. Medical
ii. Surgery
iii. Gynecology
iv. Orthopedics
v. ENT (Eyes, Nose and Throat)
vi. Ophthalmic
vii. Psychiatrist
viii. Pathology and X-Ray
ix. Anesthesia
MEDICAL CARE
The hospital takes care of its patients in three different ways. They are:
1. Primary care
2. Secondary care

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3. Tertiary care
PRIMARY CARE: - The doctors (Insured Medical Practitioners) give the primary treatment
to the patients at the various dispensaries of ESI Hospital. They examine them by holding
checkups and treat them for minor injuries.
SECONDARY CARE: - The Imp‟s at their dispensaries diagnose the severity of the disease
and accordingly advise them for further treatment in the ESI hospital. The patients are
advised to visit the hospital for blood testing, urine and stool testing, and other prescribed
tests such as Ultra sound Zoography, Eco-cardio gram (ECG), Magnetic Resonance Imaging
(MRI), Computed Tomography (CT) scan and thereby provide the reports to the patients for
their further treatment.
TERTIARY CARE: - The tertiary care includes the super specialty treatment which is given
by the doctors to their patients. Any major surgery or a transplant which has to be performed
on the patient comes under this category. The tertiary facilities given in this case includes the
knee joint replacement, the hip joint replacement and such other replacements or transplants.
There are various tied up hospitals viz. Balaji hospital at Byculla, Sion hospital, JJ hospital,
and KEM which provide the tertiary treatment to the insured patients.
PROCEDURE FOR CASE PAPER
The patients having major health problem are recommended to visit the other tied up
hospitals for undergoing super speciality treatment. The patient is again investigated for that
particular disease and if required is admitted for his treatment. A report is sent to the ESI
hospital thereafter for sanctioning his estimated expenses for medical treatment. The Medical
Superintendent issues the sanction order for the patient after complete study of his medical
report provided by the tied up hospital. A demand draft is made accordingly, and sent to the
concerned authority of the respective hospital. A copy of the medical and expenses report
along with the form stating the period of his treatment is sent to the ESIC. The patient is paid
his wages for the period of his medical treatment from the ESIC.
The most common found occupational health diseases in the industrial workers are as
follows:-

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COMMON PROBLEMS
The Medical Superintendent of the ESI Hospital‟s Doctors firmly believed in the power of
Karma and satisfying his customers who are in the form of patients. Hence in order to avoid
hindrance in the smooth functioning of the hospital, conducts training for his staffs. These
training are mostly for improving the behavioral aspects of his staffs and nurses.
The staffs and nurses who are employed in the hospital are underprivileged. Thus, they tend
to aggravate at times while serving their patients. This will lead to unsatisfied customers.
Thus to calm these people he holds training where he preach about „satisfying one patient
also, will satisfy god. And if a patient is not served properly or not attended proper manner
will be punished by god.‟
Nevertheless, he also believes that there is no organization which doesn‟t have problems.
Even in this hospital there are certain problems which do occur among the patients, the staffs,
the nurses and the doctors.
The common problems, which occur among them, are as follows:
PATIENTS
· There are no equipments for major surgery viz. angioplasty, heart operations, and
kidney transplantations available in the hospital. Hence asked to go to other hospitals
namely Balaji Hospital , Byculla; J. J. Hospital, Sion; KEM Hospital, Tata Hospital,
etc. which are tied up with ESIC.
· The outgoing patients have to wait for long hours for the doctors which in turn results
in hypertension and anxiety among them.
. The doctors being from the state government tends to become proud and arrogant at
times with the patients. Due to their arrogant behavior they at times delay or avoid
operating the patients.
· No doctors for lifestyle diseases like depression and heart ailments.Over-crowded
wards.

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THERE ARE FOUR TYPES OF ESI BENEFITS
TEMPORARY DISABLEMENT BENEFIT
1. Procedure regarding submission or Regulation Certificate and claiming the benefit
remains the same as shown above against sickness Benefit.
2. In addition, an insured person who sustains employment injury to give a notice to
such injury to the employer immediately either in writing or orally and also ensure
that the employer has given the accident report to the concerned Branch Office will in
time in the prescribed form-16.
PERMANENT DISABLEMENT BENEFIT:
1. An Insured person should submit an application for reference to the Medical Board on
plain paper to the branch office manager after the termination of temporary
disablement benefit. This may be done at the time of submitting the final certificate or
within 12 months from the termination of temporary disablement.
2. He should ensure that he also gives his age proof to the Branch Office Manager along
with the application.
3. Form B.11 (a) indicating residual incapacity will be issued by the I.M.O. /I.M.I. at the
time of final certificate. It is required to be submitted along with an application for
appearing before a Medical Board. If it has not been obtained at the time of issue of
final certificate it should be obtained at the time of applying for Medical Board.
4. The Medical Board sends its decisions to the ESIC Regional Office directly or
through branch office as the case may be and the regional office issues the sanction

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for periodically payments of P.D.B. One copy of the sanction order is endorsed to the
insured
Person also. After receipt of this sanction the insured person should submit the claims
form in the branch office for payment of P.D.B. This payment will be made to him
every month as long as he is alive.
5. In case his rate of P.D.B. is Rs.5/- per day or less an insured person can apply for
lump sum communication of the payment provided that the total commuted value
does not exceed Rs.3000
6. An Insured Person should apply for commutation within a period of 6 months from
the date of possible option. Then only branch office manager shall be able to send the
request to regional office immediately. Otherwise the insured person will be referred
to the medical referee for certifying normal expectancy of life, and only after such
certifying is obtained, the insured person‟s case will be processed for sanction of
communication.
7. The original sanction order of communication is send to the insured person with a
copy to the branch office. The insured person should produce the original copy at the
branch office at the time of payment.
DEPENDENT BENEFIT:
1. Dependents of a deceased insured person should contact the branch office for
claiming the dependents benefit. The claim clerk will receive them and supply them
necessary forms and furnish all information needed by them. He will also assist them
in filing the claim form-18
Dependents are required to submit:
a) The evidence of death of the insured person having occurred due to an employment
injury.
b) Evidence that claimants are dependent.

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c) Evidence of age of claimant.
d) Evidence that female dependent (widows/daughters) has/have not remarried or
married after the death of an insured person.
2. These claims after scrutiny are forwarded to the regional office and the Regional
Officer communicates its decision to all the persons who claim the Dependent
Benefit. To those who are not found entitled, a letter in form ESIC-146 will explain
why their claim has been rejected. The letter in form ESIC-147 will indicate the daily
rate of benefit of each dependent. For minor dependent the information is sent through
the guardian.
3. The dependents should approach the Branch Office with the letter (ESIC-147) for
claiming the first payment.
4. Subsequently they can collect dependents Benefit on first of each month either in
person or by money order by submitting claims in form-18 A.
5. If dependants are staying in far off places, they can opt for payment from the nearest
Branch Office. The Branch Office Manager will transfer all the records to the
concerned Branch Office from where payment has been desired to be made by the
beneficiary.
6. At the time of claiming Dependent Benefit for the month of June and December
every, the claimant should submit a declaration in form-27 duly attested by the
authorities mentioned there in.
MATERNITY BENEFIT:
An Insured during the employment is to submit following documents either personally or by
post:
a) A certificate of expected confinement form-21. Issued by an authorized doctor.
b) A benefit claim in form-22 duly completed.

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c) In addition to above, she has also to submit a certificate of confinement in form-23
within 30 days of date of confinement. In case of claiming payment after confinement
insured women has to submit a certificate in form-23 along with the claim form in
form-22. In case of miscarriage she has to submit a certificate of miscarriage along
with claim in form- 22. Certificate of miscarriage has to be submitted within 30 days.
Insured woman can draw Maternity Benefit on weekly basis. At the time of final
payment she should submit form-28 duly completed by her employer which will be
issued by the Branch Office Manager.

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RESEARCH
AND
DEVELOPMENT

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RESEARCH AND DEVELOPMENT:-
The research is carried on qualitative and quantitative platform. In qualitative
platform, personal interviews are conducted with managers of EMPLOYEE STATE
INSURANEC. The personal interviews gave us the insight in making the questionnaire. The
questions were based upon the interaction between us and managers.
On quantitative platform, we make the questionnaire to gather the information for the
research work. The questions in questionnaire were both closed and open ended.
The purpose is to gather information and opinion of the people.
TYPES OF RESEARCH
There are the following types of research, which are as follows.
1. Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding
enquiries of different kinds. The majors‟ purpose of descriptive research is description
the set of affairs it exists at present. In analytical research, on the other hand, the
research has to use facts or information already available, and analyze these to use
fact or information already available, and analyze these to make a critical evaluation
of material.
2. Applied vs. Fundamental: Research can either be applied research or fundamental
research. Applied research aims at finding a solution for an immediate problem facing
a society or and industrial / Business origination, Whereas Fundamental research is
mainly concern with generalization and with the formulation of a theory.
3. Quantitative vs. Qualitative: Quantitative research is based on the measurement of
quantity or amount. It is applicable to phenomena that can be expressed in terms of
quantity. Qualitative research, on the other hand is concerned with Qualitative
phenomenon, that is, phenomenon relating to or involving quality or kind.

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4. Conceptual vs. Empirical: Conceptual research is that related some abstract idea or
theory. It is generally used by philosophers and thinkers to develop new concepts or
to reinterpret existing ones.
On the other hand, Empirical research realizes on experience or observation alone, often
without due regard for system and theory. It is a data based research.
RESEARCH DESIGN
“A research design is the arrangement of conditions for collection and analyses of data in a
manner that aims to combined relevance to the research purpose with economy in procedure”.
In fact, the research design is the conceptual structure within which research is conducted; it
is constitute the blue print for the collection, measurement and analyses of data.
DATA SOURCES
The task of data collection begins after a research problem has been defined and research
design/plan chalked out. While deciding about the method of data collection to be used for
study, the researcher should keep in mind two types of data.
Secondary data was gathered from the following source:
1. R&D.
2. News papers
3. Internet.
4. Business Magazines
5. Employee Welfare
1. Primary data
2. Secondary data
1. Primary data: These data are collected afresh & for the first time and thus happen to be
original in character.
2. Secondary data: These data are already collected by someone else and which have
already been passed through the statistical process. The researcher would have to decide

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which sort of data he would be using for his study and accordingly he will have to select one
or other method of data collection.
Collection of Primary data
We collect primary data during the course of doing experiments in an experimental research
but in case we do research of the descriptive nature and perform surveys, whether sample
survey or census surveys, then we can obtain primary data‟s either through observation or
through personal interviews. This in other words means that there are several other methods
of collecting data, particularly in surveys & descriptive researches. Important ones are:
1. Observation method
2. Interview method
3. Through questionnaire
4. Through schedules
5. Other methods
Collection of secondary data
Secondary data means data that are already available i.e.; they refer to data, which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data, then he has to look into various sources from where he can obtain them. In this case he
is certainly not confronted with the problems that are usually associated with the collection of
original data. Secondary data may either be published data or unpublished data. Usually
published data are available in:
Various publications of central, state and local governments
Various publications of foreign governments or of international bodies and their
subsidiary organizations

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Technical and trade journals
Books, magazines and newspapers etc
Reports and publication of various associations connected with business and industry,
banks, stock exchanges etc.
Reports prepared by research scholars, universities, economists etc
Public records and statistics, historical documents
Our project is based on secondary data also which we have collected from various sources-
Websites
Journals
In this research project, secondary data were used. Magazines, journals, were consulted to
fetch the information about Venture Capital in India. Research project is also based on the
information collected from various websites and e-links
In my study I used the descriptive v/s analytical research and my sample size is 50.
I use the primary & secondary data in this report.
The primary data were gathered mainly through questionnaire and observation methods. The
questions were made to gather information in the form of quantitative and qualitative. The
questions were grade keeping the objective as the base.
The information represented by questionnaire is meant to support the research process of
comparison.
The research is carried on qualitative and quantitative platform. In qualitative platform,
personal interviews were conducted with managers of EMPLOYEE STATE INSURANCE.
The questions were based upon the interaction between us and the managers.
We made the questionnaire to gather information for the research work. The question in there
was both closed and open ended. The purpose is to gather standardized information and
opinion of the people.

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LITERATURE REVIEW

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LITERATURE REVIEW
The history of E.S.I., is quite brief. Its roots in the early 20th century can be traced to
Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may
be said about almost everything in the field of modern human resources management.
As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the time of the Second World War - not more than 60 years ago.
Yet in a broader sense, the practice of ESIC is a very ancient art. In the scale of things
historical, it might well lay claim to being the world's second oldest profession!
There is, says Dulewicz (1989), "... a basic human tendency to make judgments about those
one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and
universal. In the absence of a carefully structured system of appraisal, people will tend to
judge the work performance of others, including subordinates, naturally, informally and
arbitrarily.
The human inclination to judge can create serious motivational, ethical and legal problems in
the workplace. Without a structured appraisal system, there is little chance of ensuring that
the judgements made will be lawful, fair, defensible and accurate.
E.S.I., systems began as simple methods of income justification. That is, appraisal was used
to decide whether or not the salary or wage of an individual employee was justified. The
process was firmly linked to material outcomes. If an employee's performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was
better than the supervisor expected, a pay rise was in order. Little consideration, if any, was
given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise,
should provide the only required impetus for an employee to either improve or continue to
perform well.
Sometimes this basic system succeeded in getting the results that were intended; but more
often than not, it failed. For example, early motivational researchers were aware that different
people with roughly equal work abilities could be paid the same amount of money and yet
have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes; but
they were not the only element that had an impact on employee performance. It was found
that other issues, such as morale and self-esteem, could also have a major influence.

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REASONS WHICH FAIL EMPLOYEE STATE INSURANCE
Uncouple Evaluation and Development: Many appraisal systems inadvertently
force the mixing of the roles of judge and helper. The open problem-solving dialogue
required for building a relationship and developing subordinates should be scheduled
at a different time than the meeting in which the supervisor informs the subordinate
about his/her overall evaluation and its implications for important rewards.
Choose Appropriate Performance Data: The behavior rating scale, the critical-
incident methods, and various MBO techniques usefully guide the appraisal
discussion toward reviewing specific task behaviors or accomplishments -- feedback
which is both less threatening and more helpful to the person who wants to improve
performance. A comprehensive performance management system might include MBO
and behavioral ratings--which are, respectively, a means of managing the what and
how of employee task-related behaviors.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
DEFINATION OF RESEARCH:
According to Clifford Woody, „It comprises defining and redefining problems; formulating
hypothesis or suggested solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusion; and at last, carefully testing the conclusions to determine
whether they fit the formulation hypothesis.‟
RESEARCH DESIGN:
“Specification of methods and procedures for acquiring the information needed.”
DESCRIPTIVE DESIGN:
“These designs are used to establish accurate descriptions of variables relevant to the
decision being taken without demonstrating the existence of the relationships between
variables.”
SAMPLE DESIGN
The sample design is usually consistent to the „relevant population‟ specific to the research
problem.
The researcher concentrates on three things while designing the sample.
Sample Unit: The sample unit decided was from Workers to Employees
From where the sample was selected: HSN INTERNATIONAL
PHARMACUIETICAL & DRUGS LTD., HARIDWAR.
The sample size: 60 employees
The process of selection: Random Sampling
Tools of data collection : “QUESTIONNAIRE METHOD ”

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LIMITATIONS OF THE PROJECT
1. Sample size was 60 which cannot be true respective of the company having more than
21000 executives in office work. More response was collected from the executives in
office work response so collected have across the corporation
2. The efforts have been made to distribute the questionnaire in proportion of the
employee in different business groups to have a true representative of all the business
group. The response received is not in similar proportion.
3. Executive in a company are spread at all level. The questionnaire should have been
distributed in proportion to their strength.
4. The assignment being very challenging and of exhaustive in nature require
appreciable time to carry out the survey and to compile recommendation.
5. It was observed that upon a certain extent executive were trying to get a idealistic
response there after a correction factor has to be done.
6. Feed back is not communicated in general.

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RESULTS

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RESULTS
Q.1) The Company has an excellent E.S.I. and other facilities for the employees and their
families.
FINDINGS: 57% of the people agree that company has excellent benefits
And welfare facilities.
57%
39%
4%
0%
0%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.2) Benefits are fair for taking higher responsibilities.
FINDINGS: 74% Employees agree that benefits are fair for responsibilities,
13%
74%
13%
0%
0% Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.3) Housing facility provided by HSN INTERNATIONAL to its employees satisfactory.
FINDINGS: Almost 48% people agree that office environment is and 4% people disagree to
this.
44%
48%
4%
4%
0% Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.4) In case of any mishap or an accident proper care is taken while compensating.
FINDINGS: Almost 48 % people agree that representing the company should be based on
authority.
35%
48%
4%
13% 0% Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.5) Job rotation and transfer policy of the organization are based on its requirement.
FINDINGS: Almost 52% employees agree that job rotation and transfer is
Based on organizational requirement while 17% employees
Strongly disagree to this.
22%
52%
9%
17% 0% Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.6) LFA policy is beneficial to employees.
FINDINGS: 66% employees agree that the LFA policy is beneficial to employees while 27%
strongly agree with this.
.
27%
66%
5%
2% 0%
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree

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Q.7) Periodical medical examination is beneficial.
FINDINGS: 48% employees agree that system facilities and utilities are fully documented
while 9% were neutral.
43%
48%
9%
0%
0%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.8) HSN INTERNATIONAL Sports policy is successful in reducing the stress of
monotonous work.
:
FINDINGS: More than 78% employees agree to this.
9%
78%
13%
0% 0% Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.9 The present HSN INTERNATIONAL Retirement policy is beneficial to secure the
retired life.
FINDINGS: 44% Employees strongly agree that LFA Policy is beneficial but 22% disagree
to this.
13%
44%17%
22%
4%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.10) The Agrani Samman Ex Gratia Benefit is good enough to sustain the life of old
people.
FINDINGS: 22% employees strongly agree and 48% agree to this.
22%
48%
17%
13% 0%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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Q.11) Initial training should be provided as much as possible.
FINDINGS: 30% employees agreed and 44% strongly agree with this.
44%
30%
22%
4% 0%
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

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FINDINGS

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FINDINGS
The most important segment any research study is its findings. There far the study that was
made, have certain finding which are discussed below.
Employers are not completely satisfied as their response during research is negative
regarding incentives.
Findings reveals that employers are totally satisfied with the promotion & salary
increment which are provided by employers after the measurement of their E.S.I., and
they also agree that the E.S.I., always shows the real working position of the
employees in the organization.
Study reveals that most of employers fell that appraisal create depression in the
minds of employees and employees faces some biasness while doing the appraisal.
Study reveals that organization is concerned about education & knowledge of its
employees in order to increase their efficiency through conduction the training
programme from time to time.
The most appropriate and suitable method of the organization for conduction the
E.S.I., is ranking method.
An appraiser must try to create healthy and productive work environment because the
working environment affects the performance of employees. Finding reveals that
productivity is the key result area of the organization.
Study reveals that appraiser agree that the employees had required sufficient technical
know-how which adds up to their levels of moral.

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CONCLUSION

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CONCLUSION
Organizational development, which rests on the strength and support of the human
elements, is catching the imagination of several policy-makers leading to the promulgation of
several techniques and tools in this direction. The emergence of the 360-degree performance
appraisal, a comprehensive mechanism to know the pulse of the organization, has got a lot of
implications.
Formal systems for appraising performance are neither worthless nor evil, as some
critics have implied: or are they panaceas, as many managers might wish. A formal appraisal
system is, at the very least, a commendable attempt to make visible, and hence improvable, a
set of essential organization activities. Personal judgments about employee performance are
inescapable, and subjective values and fallible human perception are always involved. Formal
appraisal systems, to the degree that they bring these perceptions and values into the open,
make it possible for at least some of the inherent bias and error to be recognized and
remedied.
Many organizations that go out shopping for performance appraisals, 360 or other
versions, have already taken a step in the wrong direction. They typically have forgotten to
diagnose their real needs. If your business has a desire for the 360 Appraisal process make
sure you ask yourself "Why?" What is your organization's or management's real need? Don't
do it because everyone else seems to be doing it. Make sure the process and philosophy are
appropriate to your organization and its values.
By improving the probability that good performance will be recognized and rewarded
and poor performance corrected, a sound appraisal system can contribute both to
organizational morale and organizational performance. Moreover, the alternative to a bad
appraisal program need not be no appraisal program at all, as some critics have suggested. It
can and ought to be a better appraisal program. And the first step in that direction is a
thoughtful matching of practice to purpose.

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RECOMMENDATIONS

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RECOMMENDATIONS
The survey conducted reveals some major facts, which should be taken into consideration.
Some of them are discussed below here with:
 The techniques used for the E.S.I., should be such that it somehow helpful in
improving the performance of the employees rather that discouraging them.
 The company should provide properly & salary increment after the measurement of
performance appraisal should be free from biasness.
 Organization should be next considered all of the factors like administrative ability,
technical ability, job efficiency, & communication ability while appraising the
performance, employers must try to create healthy and productive work environment,
which affects the performance of employees
 Employers should be concentrating on productivity; it is a key result area of their
organization.
 The E.S.I., should not create points of comparison among employees of the company

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LIMITATIONS

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LIMITATIONS
The present report is having few limitations which are as follows:-
The duration of the survey was limited and it does not cover all the executives of
various departments.
Few executives try to avoid filling the questionnaire, which create difficulty in the
research.
The sample size for conduction the questionnaire, which create difficulty in the
research.
The survey has to rely on the answers, which has been provided by the respondents.
There is inconsistency & ambiguity, which create difficulty in respondents. There is
inconsistency & ambiguity, which create difficulty in giving 100% accuracy in results
It was not possible to discuss various method of performance appraisal, as the
employers were well aware about them.

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BIBLIOGRAPHY

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BIBLIOGRAPHY
PRASAD, L.M. Human Resource Management
T.N. CHHABRA Human Resource Management
S.S. KHANKA Human Resource Management
C.R. KOTHARI Research Methodology
WEBLIOGRAPHY:
 http://www.scribd.com
 http://www.hsninternational.in
 www.google.com
 http://ESIC.com
 http://www.esic hospital.com
 http://en.wikipedia.org/wiki/Employees%27_State_Insurance
 http://smallb.in/%20/plan-new-entrepreneurship%20/guidelines-and-procedures-start-
ups%20/employees-state-insurance-esi

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QUESTIONNAIRE
…………
Name -
Age -
Gender -
Length of tenure in the organization
-
Designation -
Strongly
Agree
Agree Neutral
Dis
agree
Strongly
Disagree
1
The company has an excellent E.S.I. and
other facilities for their employees and
their families.
2
Benefits are fair for taking higher
responsibilities.
3
Housing facility provided by HSN
INTERNATIONAL to its employees
satisfactory.
4
In case of any mishap or an accident proper
care is taken while compensating.
5
Job rotation and transfer policy of the
organization are based on its requirement.
6 LFA policy is beneficial to employees.
7 Periodical medical examination is beneficial.
8
HSN INTERNATIONAL Sports policy is
successful in reducing the stress of
monotonous work.
9
The present HSN INTERNATIONAL
Retirement policy is beneficial to secure
the retired life.
10
The Agrani Samman Ex Gratia Benefit is
good enough to sustain life of old people.
11
Initial training should be provided as much as
Possible.

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