6.

2 HR MANUAL
CONTENTS

DETAILS ISSUE DATE PAGE

6.2.0 KCP PHILOSOPHY A 17.10.2013 2
6.2.1 KCP VISION, MISSION, CORE VALUES A 17.10.2013 2
6.2.2 HR POLICY A 17.10.2013 3
6.2.3 OBJECTIVE A 17.10.2013 4
6.2.4 MANPOWER PLANNING A 17.10.2013 5-6
6.2.5 RECRUITMENT & SELECTION A 17.10.2013 7-9
6.2.6 APPOINTMENTS A 17.10.2013 10-14
6.2.7 INDUCTION A 17.10.2013 15-16

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 ABOUT THE KCP LIMITED

KCP Group is a leading, dynamic industrial group in South India for over 7 decades, with its
business spanning over diverse products. Cement, Heavy Engineering, Sugar, Power generation
(Hydel, Wind, Thermal & Solar) and Hospitality are the core areas of its business. KCP Group has
associate companies such as Fives Cail-KCP Limited, which develops and designs machinery for
sugar industry; KCP Technologies Limited, is engaged in providing software solutions and software
products reselling; KCP Vietnam Industries Limited, produces refined sugar at the factory located in
Vietnam.

6.2.0 - KCP PHILOSOPHY

KCP’s philosophy is to ‘Modernise, Indigenise, Never Compromise on Technology’. This has taken
KCP from being a single co-operative sugar factory in 1941 to being one of the largest and most
well diversified industrial houses in India.

6.2.1 - KCP VISION

Our Vision is to achieve Organisational Excellence through Innovation.

6.2.1(a) - KCP MISSION

Sustainable Growth through Diversified Quality Products, Processes and Services for all our
Stakeholders.

6.2.1(b) - KCP CORE VALUES

Indigenise: Indigenisation is key to sustainable development and stay competitive. We strive

to use our own resources, knowledge and skills. We strive to generate economic
value for the nation through indigenization of industry complying with applicable
laws and regulations at all levels.

Respect People: We care for our employees and customers. Workplace safety is our top priority.
We show respect, compassion and humanity to all associated with us. We share
prosperity with employees and shareholders.

Integrity: We conduct our business with honesty and transparency upholding highest
standards of business ethics.

Commitment: We honour all commitments – passion for quality, excellence, superior

technology and accountability. We are committed to the betterment of our
environment and community.

Innovation: To be at the forefront in our operations, innovation is the key. We continuously

seek cutting-edge technologies. We pursue newer and better processes,
procedures, products, services and management practices.

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 6.2.2 - HR POLICY

KCP’s Human Resources Development & Services (HRD & S) Department will add value to all its
Units and associate companies by ensuring that the right person is assigned for the right job and that
they grow and contribute towards organisational excellence.

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 6.2.3 - OBJECTIVE OF THE MANUAL

The objective of this HR Policy Manual is to enlighten the employees of the company/associate
companies about the various HR practices/procedures/welfare and amenities of the company, which
would help the Unit Heads / HOD’s not only to keep themselves abreast of the various policies and
procedures but would also be useful as a valuable guide in their day-to-day discharge of their
respective functional areas and the employees at large would get an insight of the procedures/rules to
be followed in respect of various areas of HRD & Services.

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 6.2.4 - MANPOWER PLANNING

6.2.4 A. PURPOSE

To outline the basic procedure to be followed in undertaking manpower planning;

developing organisation structure, role description and authorising changes in them.

6.2.4 B. SCOPE

This procedure is applicable to all units of the organisation (and its subsidiaries) and covers
all levels of employees. It is mandatory for all the personnel involved in the above defined
activities to follow this procedure.

6.2.4 C. PROCEDURE

1. Manpower Studies

(a) The Industrial Engineering department (IED) or Independent Agency will undertake
manpower studies and determine the standard force. The studies will be done once in
every three years. However, a yearly review will be done to accommodate for changes.

(b) During the studies by the IED or Agency the concerned department heads and
personnel heads will be consulted.

(c) The studies pertaining to an unit will be approved by the concerned Unit Head and the
Head of HRD & Services department and put up for management’s (ED/JMD/CMD)
clearance.

2. Organisation Structure & Role Description

(a) On approval by the management, the HRD & Services department will arrange for the
preparation of organisation structure charts and role description sheets in the final
form.

(b) Organisation charts will also indicate the names of the personnel in the respective
positions.

(c) Role descriptions prepared will be illustrative in nature and not exhaustive and it shall
be obligatory on the part of the incumbents to carry out such duties /assignment which
falls within the overall perspective and or adjunct to their functional position (i.e.) they
will not be the only do’s and do not’s of a particular role. They will not include
descriptions of general in nature. In addition to any such defined role description, the
concerned superiors instructions and the various other organisational day to day
requirements will form part of any individual personnel’s function.

(d) Any unit head or department head can at any time make requests for a copy of the
organisation chart and position description sheets pertaining to them. HRD & Services
department will act on all such requirements.

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3. Changes

(a) Any change to the organisation structure and role descriptions will have to be
authorised by the HRD & Services department.

(b) If required, the HRD & Services department will initiate a study by the IED or Agency
before authorising any change.

(c) In case any changes come up during the studies of IED they will have to be authorised
by the HRD & Services department.

(d) In case of any new position to be created, upgradation of the existing position or
deletion of a position the HRD & Services department will obtain the management’s
clearance.

(e) Any department head or unit head can request for a review of the organisation structure
and role descriptions. All such requests will be routed through HRD & Services
department for necessary action.

4. Monitoring

(a) The HR & S departments of the units will send manpower statements to HRD &
Services department every month.

(b) The statement will show the present manpower position.

(c) The HRD & Services department will continuously monitor the deviations from the
standard force and ascertain the reasons for the same.

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 6.2.5 - RECRUITMENT AND SELECTION

6.2.5 A. PURPOSE

To provide a general outline of uniform procedures to be followed in acquiring personnel

possessing the knowledge; skills and abilities required for the operation, growth and
development of the organisation.

6.2.5 B. SCOPE

This procedure will be followed in all recruitment and selection activities of the
organisation to ensure uniformity. All personnel involved in such activities stated will have
to adhere to this procedure.

6.2.5 C. PROCEDURE

1. Vacancy Identification

Vacancy normally occur due to -

(a) Superannuation of an employee

(b) Resignation by an employee
(c) Termination of an employee
(d) Changes to the organisation structure, or
(e) Internal personnel adjustments
(f) Death of an employee
(g) New Business

2. Whenever a vacancy is identified the HRD & Services department will initiate action for
filling up the vacancy in case of Management, Administrative and Technical Staff. The
unit HR & S department will initiate action in case of staff other than those stated above.
However, HRD & Services department will be informed of the vacancies as and when
arises.

3. In case of superannuation of an employee, an action for succession will be initiated at

least a year before such superannuation. A succession planning exercise will be
undertaken and reviewed every year for the next five years. For Management,
Administrative and Technical staff the HRD & Services department and for others the unit
HR & S department will be responsible for this. The units will discuss these with HRD &
Services department.

4. In case of new positions being created, the procedure for approval of the position has to
be followed as explained in Section 6.2.4 (Man Power Planning). On approval, the HRD
& Services department or unit HR & S department, as the case may be, will initiate steps
for filling up the positions.

5. Any recruitment action will begin after the HRD & Services department determines that it
is within the budgeted strength. For any recruitment beyond the budgeted strength the
HRD & Services department will take the management’s clearance before initiating any
action.

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6. Whenever changes are effected to the organisation structure, the HRD & Services
department will also study the feasibility of personnel readjustments before initiating
action on recruitment, if any.

7. The HRD & Services department or the unit HR & S department, as the case may be, will
use all available sources for hiring suitable personnel.

8. Whenever possible, suitable candidates from within the organisation will be considered
for promotion/rotation into more responsible positions/different areas.

9. All advertising, including newspapers, magazines, dot.com and all other advertising
media, for employment purposes will have final approval of the HRD & Services
department. For advertising expenditures crossing Rs.50,000/- management’s clearance
will be taken.

10. All applications received by any source whatsoever will be scrutinised by the HRD &
Services department or the unit HR & S department as the case may be. After such
scrutiny, a list of candidates for interview will be prepared.

11. Interview Panel: The HRD & Services department or unit HR & S department will
nominate a panel for the interview. A suitable date for the interview will be fixed by the
HRD & Services department or unit HR & S department and all concerned will be
informed.

12. The shortlisted candidates will be sent a call letter/telegram/e-mail for interview,
specifying the date, time and venue by the HRD & Services department or unit HR & S
department, as the case may be.

13. Each applicant has to fill the Personal Profile application form of the organisation before
they attend the interview.

14. Every panel member will evaluate the candidates’ performance on an assessment form
(format enclosed) and the HRD & Services department or unit HR & S department
collects all such assessment forms for final action.

15. The method of interview and various other selection criteria will be determined prior to
the interview by the HRD & Services department or unit HR & S department.

16. After the interview a list of selected candidates will be prepared in the order of selection
and signed by all panel member. If the interviewed candidates are not found to be good,
fresh process will be initiated as outlined above.

17. Expenses incurred by the candidates for attending the interview will be reimbursed as per
the rules given in the Annexure-2. All such reimbursements must be duly approved by
HRD & Services department or unit HR & S department, as the case may be.

18. All aspects of employment will be discussed by HRD & Services department or unit HR
& S department, with the shortlisted candidates and a final selection will be made. In

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 cases where the unit HR & S department has conducted the interviews, it will inform
HRD & Services department about the same and obtain its clearance before issuing
appointment orders.

19. In case of Management, Administrative and Technical staff, where it is deemed necessary
by the HRD & Services department and particularly for all recruitments in Manager and
above levels, management’s clearance will be obtained before issuing appointment
orders.

20. Wherever it is deemed necessary, the HRD & Services department or unit HR & S
department, as the case may be, will first make an offer to the selected candidate and on
acceptance of the offer, a formal appointment order is issued after joining.

21. Issuance of the appointment orders will be as per the guidelines enunciated in the Section
6.2.6.

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 6.2.6 - APPOINTMENTS

6.2.6 A. PURPOSE

To outline the procedure for issuing the appointment letters; promotion letters; increment
and all other letters of personnel related orders and the follow up actions.

6.2.6 B. SCOPE

This procedure is applicable to all units of the organisation. Various aspects related to this
are presented in more detail under separate procedures.

6.2.6 C. PROCEDURE

1. Appointment Letters

(a) On acceptance of the offer by a candidate or on a decision of selection of a candidate,

the process of preparing the appointment letter will be initiated by the HRD & Services
department or unit HR & S department, as the case may be.

(b) Appointment letter models for different levels are shown in the Annexure-4 and the
rules and regulations and all other terms of employment like employment related
benefits etc. are as enunciated in various sections of this manual.

(c) Before initiating an appointment letter preparation, the grade, designation, salary etc.
details will be decided by the HRD & Services department or unit HR & S department,
as the case may be.

(d) The HRD & Services department or unit HR & S department may consult the unit
heads/department heads, if required in deciding the grades and designation. However,
normally a set practice, as approved by top management and mentioned separately in
the concerned sections of this manual, will be followed.

(e) After the appointment letter is prepared, the HRD & Services department or unit HR &
S department, as the case may be, will approve the draft and put up for signature, to the
concerned authority specified later on in this procedure. All letters will be in 2+2
copies.

(f) Wherever, the HRD & Services or unit HR & S department is the signing authority,
they will duly sign the letter and indicate further action as outlined later in this
procedure.

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 (g) All the other copies will be maintained by the issuing authority (i.e.) HRD & Services
department or unit HR & S department, as the case may be. Further action will be
initiated after the receipt of acceptance by the appointee and as per the procedure
outlined herein. All appointment letters will be posted alongwith other benefits letter
after joining the duty.

2. Increment Letters

(a) Generally increments are given annually and the quantum of increments will be
decided as per the procedure mentioned later in this manual.

(b) HRD & Services department for Management, Administrative & Technical staff and
unit HR & S department for other staff will prepare the increment letters and on
verification put up for signature by the concerned authority; specified in this
procedure later on.

(c) After the letters are duly signed by the concerned authority they will be sent to the
individual employee through the departmental heads.

3. Promotion Letters

(a) Promotion from grade to grade, category to category are decided by the HRD &
Services department or unit HR & S department, as outlined in a different sections of
this manual.

(b) Letter for promotions will be prepared by HRD & Services department in case of
promotions within the Management staff, the Administrative Staff and the Technical
Staff. For the promotions within the staff other than stated above, the unit HR & S
department will prepare the letters. These letters are prepared in 2+2 copies.

(c) On verification, letter will be put up to the concerned signing authority, specified later
in this procedure.

(d) On the letters being duly signed, the first copy is sent to the employee through the
concerned unit head/department head and remaining copies are distributed as outlined
later in this procedure.

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 4. Signing Authority

Sl.No. CATEGORIES APPROVING SIGNING

1. APPOINTMENT LETTERS:
(a) Management Staff: CMD/JMD/ED Head of HRD & Services
Grade 1 - 10

Grade 11 - 19 CMD/JMD/ED CMD/JMD/ED

(b) Non-Management Staff:
Admin/Technical/Workers at Unit Head/ Unit Head/
Units Head of HRD & Services Head of HRD & Services

Admin/Technical at R.O. Head of HRD & Services Head of HRD & Services
(c) Executive Trainees/
Management Trainees/
Company Trainees/ ED/ Head of HRD & Services
Industrial Trainees & other Head of HRD & Services
Trainees in Diploma and
Graduate Levels
(d) Apprentices Unit Head Unit Head
(e) Retainers/Consultants/ CMD/JMD/ED CMD/JMD/ED
Advisors
2. INCREMENT LETTERS:
(a) Management Staff CMD/JMD/ED Head of HRD & Services
Grade 1 - 10

Grade 11 - 19 CMD/JMD/ED CMD/JMD/ED

(b) Non-Management Staff – JMD/ED
Units & R.O. Head of HRD & Services

3. PROMOTION LETTERS:
(a) Management Staff CMD/JMD/ED Head of HRD & Services
Grade 1 - 10

Grade 11 - 19 CMD/JMD/ED CMD/JMD/ED

(b) Non-Management Staff - CMD/JMD/ED
Units & R.O. Head of HRD & Services

4. REDESIGNATION:
(a) Management Staff CMD/JMD/ED Head of HRD & Services
Grade 1 - 10

Grade 11 - 19 CMD/JMD/ED CMD/JMD/ED

(b) Non-Management Staff – CMD/JMD/ED Head of HRD & Services
Units & R.O.

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Sl.No. CATEGORIES APPROVING SIGNING
5. OFFER/BENEFIT LETTERS:
(a) Management Staff Head of HRD & Services Head of HRD & Services
(b) Non-Management Staff - Head of HRD & Services Head of HRD & Services
Units & R.O.

6. TRANSFER LETTERS:
(a) Management Staff CMD/JMD/ED Head of HRD & Services
Grade 1 - 10

Grade 11 – 19 CMD/JMD/ED CMD/JMD/ED/

(b) Non-Management Staff Unit Head Unit Head/
(Transfers within the Unit) Head of HRD & Services
(c ) Non-Management Staff Head of HRD & Services Head of HRD & Services
(between Units and Non-
Management Staff - R.O. within
the Office
7. RETIREMENT NOTICES/RETIREMENT LETTERS:
(a) Management Staff - CMD/JMD/ED
(b) Non-Management Staff – - Head of HRD & Services
Units & R.O.

8. SPECIAL COMMENDATIONS:
(a) All Categories of Employees CMD/JMD/ED CMD/JMD/ED/
Head of HRD & Services
9. DISCIPLINARY ACTION/ CMD/JMD/ED Head of HRD & Services
TERMINATION/
CONFIRMATION AFTER
PROBATION/
CONFIRMATION AFTER
COMPLETION OF TRAINING
Unit Head/
Non-Management Staff – Units Head of HRD & Services
CMD/JMD/ED
10. TEMPORARY SERVICES:
(a) Below Diploma and Graduate Unit Head Unit Head/
Levels Head of HRD & Services
(b) Diploma, Graduate and above Head of HRD & Services Head of HRD & Services
Levels
11. ACCEPTANCE OF RESIGNATION:
(a) Management Staff Head of HRD & Services Head of HRD & Services
Grade 1 - 10

Grade 11 – 19 CMD/JMD/ED CMD/JMD/ED

(b) Non-Management Staff – Unit Head / Head of HRD & Services
Units & R.O. Head of HRD & Services

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5. (a) Further action on offer letters will be taken on receipt of the duplicate copy of the
same duly signed by the appointee.

(b) Once the appointee accepts the offer, an approximate date of joining will also be
taken from him/her and the unit head and department head where the appointee is
to join will be informed of the appointment and likely date of joining of the
appointee.

(c) The appointee will be joining duty at the headquarters mentioned in the
appointment letter. Any change in this will have to be approved by the signing
authority.

(d) The appointee will be eligible for certain joining allowances as per the rules given
in the Annexure-3. On reporting for duty he can claim this by submitting
necessary details.

(e) On reporting for duty, the other aspects relating to induction will be initiated, as
outlined separately.

6. Increment letters, other benefit letters, redesignation letters, transfer letters, relieval
letters, confirmation letters, retainer/consultant/advisor letters, temporary service
letters will be copied to –

(a) Concerned Unit Head / Department Head

(b) Concerned HR & S department

apart from sending the original to the concerned employee and having one file
copy for the personnel file.

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 6.2.7 - INDUCTION

6.2.7 A. PURPOSE

To ensure that a new employee, who is an investment, will be thoroughly oriented and
inducted into the organisation.

6.2.7 B. SCOPE

This procedure is applicable to all units of the organisation and covers all levels of the
employees.

6.2.7 C. PROCEDURE

1. As outlined in the earlier sections, an employee is selected and appointed will intimate
the signing authority of his acceptance and the likely date of joining. This will be
informed to all concerned as mentioned earlier.

2. The HRD & Services department or unit HR & S department in consultation with the
unit head and department head will develop an induction program for every
appointment accepted. Copies of this will be made available to all concerned in
advance.

3. On the date of joining, the employee will sign a joining report with the HRD & Services
department or unit HR & S department, as arranged for earlier.

4. The HRD & Services department or unit HR & S department will ensure all the aspects
of the employment and related benefits are explained to the new employee and have
him complete necessary forms.

5. The HRD & Services department or unit HR & S department, as the case may be, will
inform the concerned payroll section for pay roll purposes.

6. The HRD & Services department or unit HR & S department, where it is the signing
authority, will prepare and maintain a permanent personnel record file on each
employee.

7. On giving the joining report, the employee will go through the induction program,
which is developed as per point 2 of this procedure.

8. After the total induction is over, a feed back is obtained from the new employee in order
to further strengthen the induction program.

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 Eligibility of Various Facilities will be as Follows

Grade Designations Laptop Desktop Mobile Email Business

(need (need ID Card
based) based) (need
based)
Grade 15- EP, CFO, Sr. VP, VP,     
19 Sr. GM, GM
Grade 11- GM, Sr. DGM, DGM,     
14 AGM
Grade 7-10 Sr.Manager, Manager,   
Dy. Manager, Asst. 
Manager
Grade 4-6 Asst. Officer, Officer,   
Sr. Officer
Grade 1-3 Other Management  
Staff
NMS (T) Drivers, Electricians, 
etc

 Need based only.

Note:

All Laptops, Telephones / Mobiles / Office telephones are to be used purely for official business
purposes. However, in cases of emergency, personal calls may be made on prior approval from the
departmental heads. Charges for such calls will be borne by the employee. Where a misuse is
identified necessary action will be taken as deemed fit by the Management.

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