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Hr and payroll
Key Inputs This document outlines standard operating procedures for human resources processes at construction and manufacturing companies. It provides an overview of the key HR processes including recruitment, new employee onboarding, employee benefits, training, compensation, and exit management. It describes the organizational structure for HR and defines roles and responsibilities. Process inputs, activities, and outputs are defined for recruitment including manpower planning, new employee requisition, screening candidates, and selecting new hires. Key Objectives Process Owners Key Formats Flowchart Key Outputs Key Output KPM MIS R&A Help
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- 1. Gyanam Educom Human ResourcesConsultant Standard Operating Procedures (SOP) For Construction & Manufacturing Companies Prepared & Compiled By; SATISH KUMAR CEO & Group Director Aashumal International Private Limited Version: 01
- 2. Index HUMAN RESOURCES Process Overview Home Key Objectives Organization Chart Process Overview Key Inputs Process Owners Key Objectives Process Owners Key Inputs Key Activities Activities Flowcharts Flowchart Key Formats Key Outputs Key Outputs KPM MIS Responsibility & Authority Matrix Key Formats R&A Key Performance Measurements Help Management Information Systems Help Guidance 2
- 3. Process Overview HUMAN RESOURCES 1. Recruitment 2.New Inductee Management Home 3. HR Documentation Process Process Overview Overview Key Inputs 4. Master Management Key Objectives Key Activities 5. Employee Benefits Process Owners Human Resources Key Formats 6. Training & PMDP Flowchart 7. Employee Relationship Key Outputs KPM MIS 8. Compensation 9. HRIS R&A 10. Statutory Process Help 11. Exit Management 3
- 4. Process Overview HUMAN RESOURCES 1. Recruitment 1.1Manpower Planning 1.2 New Employee Requisition Home 1.3 Sourcing & Screening Process Process Overview Overview Key Inputs 1.4 New Employee Selection Key Objectives 1.5 Review of selection Procedures Process Owners 1.6 Invoice Certification for Recruitment agencies Human Resources Key Formats Key Activities Flowchart 2.1 New Employee joining process Key Outputs KPM 2.2 Induction Process 2.3 Opening of new Bank Account MIS Help 2. New Inductee Management R&A 2.4 Culture Sensitization 4
- 5. Process Overview HUMAN RESOURCES 3. HRDocumentation 3.1 Employee Confirmation process 3.2 Other HR Documentation Home 4. Master Management Process Process Overview Overview 4.1 Employee Master Key Inputs 5.1 Employee Mobile Phone Scheme Key Objectives 5.2 Employee Laptop Scheme Key Activities Process Owners Human Resources 5.3 Employee Travel Flowchart Key Formats 5.4 Salary Advance Key Outputs 5.5 Employee Relocation /Transfer KPM 5.6 Employee Group Insurance MIS 5. Employee Benefits Help R&A 5.7 Employee family Benefit Scheme 5
- 6. Process Overview HUMAN RESOURCES 6. Training& PMDP 6.1 Training Process 6.2 Performance Appraisal Home 7. Employee Relationship Process Process Overview Overview 7.1 Retention Initiatives Key Inputs 7.2 Diversity Management Key Objectives Key Activities 7.3 Grievance Handling Process Owners Human Resources 8. Compensation 8.1 Payroll Flowchart Key Formats 8.2 Reimbursements Key Outputs KPM MIS 9. HRIS 10. Statutory Process R&A 11.1 Employee Clearance Help 11. Exit Management 11.2 Employee Exit Interview 6
- 7. Key Objectives HUMAN RESOURCES SOP Objectives • ProcessOverview Key Objectives Key Objectives • To embed financial and informational controls in the HR process to manage employee benefits administration and other HR related activities. • To provide a monitoring framework in order to manage the performance of the HR function. • Home To specify procedures for the HR in order to increase consistency in the execution of the process. To recruit the right people in the right place at the right time. • Maintain a robust Manpower Planning process. Key Activities • Process Owners To maintain a database of all employees and their key (personal, contact, and qualification) details. • To maintain a database of compensation details of all employees as well as tax-related particulars required for accurate TDS calculation (for Income tax and / or Fringe Benefit Tax). • To specify procedures for the Payroll process in order to increase consistency in the execution of the process.. • To provide a monitoring framework in order to manage the performance of the Payroll function. • Optimal utilization of Human Resources. KPM MIS Flowchart To accurately compute and process payroll. • Key Formats Key Inputs Key Outputs R&A Help 7
- 8. HUMAN RESOURCES Organizational Structure -HR CMD Home Director Process Overview Key Inputs Key Objectives Key Activities Activities Head HR Process Owners Process Owners Flowchart Key Formats Manager Recruitment Manager HR Key Outputs Key Output KPM MIS Help HR Team (Recruitment) HR Team (HO) HR Team (Site) Executive (HR) Executive HR R&A 8
- 9. Organizational Structure -HR HUMAN RESOURCES Band Structure Band HO Staff B01 Project Staff Managing Director, Directors Home Process Overview Key Inputs B02 Key Objectives Process Owners B03 Process Owners Senior Vice-President, Vice-President, General Manager Dy.General Manager, Asst.General Manager Key Activities Activities Project Head Flowchart Key Formats B04 Sr.Manager, Manager Dy. Project Head, Block-in-charge Key Outputs Key Output KPM B05 MIS B06 Help Sr.Engineer, Engineer, Jr.Engineer Construction Manager, Site Engineer, Senior Executive, Executive Senior Executive, Executive R&A 9 These are broad classifications of the grades in the company.
- 10. Process Owners HUMAN RESOURCES Designation Activities Performed CMD/Director Approves Manpower Budget and Manpower Planning Approves Confirmation letter / Probation extension letter and termination letter/ Relieving letter Approve the final summary of appraisal form Approves Employee award form Approves Employee Group Insurance policy Approves Employee Family Benefit scheme Authorized salary revisions, resignations, etc. Head HR Review and Approval of Budget and Manpower Planning Approves Confirmation letter / Probation extension letter and termination letter/ Relieving letter Invoice certification of Recruitment Agency Approves the interview formats Blocking/Unblocking of Employee Master can only be authorized by Head HR Approves the Training Calendar Review the final summary of appraisal form Review and Approve Employee award form Review Employee Group Insurance policy Review Employee Family Benefit scheme Approve HRIS Grievance Handling Approves the Payroll and compensation Resolves the issue in case of change of employees master. Approves the F&F computations at the time of separation Home Process Overview Key Objectives Process Owners Process Owners Key Formats KPM MIS Help Manager (HR) Conducts Induction for new employees Prepares Confirmation letter / Probation extension letter and termination letter/ Relieving letter Implements additions, modifications and blocking/ unblocking of master records Prepares the final summary sheet of employee appraisement Review mobile phone requisition Review advance requisition form Prepare training calendar Review and approves expense claim forms Review Schemes for employee benefits like Group insurance policy, Employee Family benefit schemes Review the self assessment forms Approves the checklist for statutory compliances Review HRIS Preparing monthly payroll statement Verifies the salary advance tracker with approved requisitions and signs off the tracker at the month end Reviews and approves the calculation for gratuity payable Reviews the F&F computations at the time of separation Monitors the attendance and approves additions/ modifications to the attendance records Approves the reconciliation of the leave Register with leave applications and the employee details in the employee master Key Inputs Key Activities Flowchart Key Outputs R&A 10
- 11. Process Owners HUMAN RESOURCES Designation Activities Performed Manager( Recruitment) Review the manpower estimation sheet Initiate the process for staff recruitment Review the interview formats Review Recruitment Agency invoice along with supporting documents Executive ( Recruitment) Updates Staff Requisition tracker and Source tracker Screens the applications based on job description Carries out candidate‟s background verification check Coordinate Manager (Recruitment ) in other recruitment process Home Process Overview Executive (HR) Key Objectives Process Owners Process Owners Key Formats KPM MIS Executive (HR ) at site Help Arranges the basic joining formalities Performs additions, modifications and blocking/ unblocking of master records Update Employee Asset Tracker On receipt of mobile bill s, prepare a statement for that particular month Collates all training request form and prepare list of attendees Takes attendance on training day( as per training calendar) and updates training tracker with details of program and attendees Maintain a claim Register ( Manual) Maintaing Checklist for statutory compliances Execute schemes for Employee Benefit Execute HRIS Trace the attendance of site places on periodical basis Maintain salary advance tracker based on the approved requisitions Perform the payroll processing for the month Calculates the tax payable for each employee Calculates the gratuity payable Performs F&F computations at the time of separation Maintain attendance records Updates leave register with details of leave application On monthly basis , reconciles the leave register, leave applications and the employee details in the employee master Sources applications and conducts interviews of PSA‟s along with project In charge Undertake induction for new joinees Process the attendance Process the employee advances Process employee Grievance Initiate Statutory compliances process Maintain and update statutory Register Key Inputs Key Activities Flowchart Key Outputs R&A 11
- 12. HUMAN RESOURCES 1. Recruitment Key Input: − ApprovedStaff Requisition form (SRF) − Manpower Budget − Interview Assessment Form − Job Applications − Application form − Background verification form − Personnel file checklist Home Process Overview Key Inputs Key Inputs Key Objectives Process Owners Key Activities Activities Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 12
- 13. HUMAN RESOURCES 1. Recruitment Key Activities: TheKey Activities in the Agree Marketing Parameters process are as below: Home 1.1 Manpower planning 1.2 New Employee Requisition Process Overview Key Inputs 1.3 Sourcing & Screening 1.4 New Employee Selection Key Objectives 1.5 Selection Process Review Process Owners Key Key Key Activities Activities Activities 1.6 Invoice Certification for Recruitment Agency Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 13
- 14. HUMAN RESOURCES 1. Recruitment 1.1 KeyProcess description – Manpower Planning 1. At the beginning of each year, a manpower budget shall be prepared for both the support functions and the field staff (sites). 2. The activity of preparation of the budget shall be initiated by a personnel at Manager or equivalent level in each department. 3. The following considerations shall be made at the time of drawing up/ finalizing the Manpower Budget: Home Process Overview Manpower requirement in current projects Key Objectives Manpower requirement on expected projects 4. The inputs of the Manager shall be recorded in a Manpower Estimation sheet (MES) which shall be sent to the respective HOD for approval. In case of any queries, HOD shall obtain clarifications from the Manager. 5. Post approval of the HOD, the MES shall be collected from each HOD by Executive (Recruitment) who shall forward the same to the Manpower Planning Committee (MPC) for finalization. The Manpower Planning Committee shall comprise of the following members: Key Formats – – Flowchart Key Outputs Key Output Head (HR) Head of Departments – MIS Key Key Key Activities Activities Activities Manpower gaps in support functions Process Owners KPM Key Inputs Site In-charge R&A Help 14
- 15. HUMAN RESOURCES 1. Recruitment 1.1 KeyProcess description – Manpower Planning 6. On receipt of the inputs of respective department Manager in the Manpower Estimation Sheet (MES), the MPC shall first individually review the MES and in case of any queries, shall obtain clarifications either from the HODs/ Managers. On review of the MPC, details of the MES shall be collated in a Manpower budget format. Process Overview 7. The Manpower budget shall be signed-off by the MPC members subsequent to which the same shall be sent to the CMD/Director for approval. Key Objectives 8. Manpower budget may be revised by the MPC at the mid-year based on any business exigencies such as expected business growth, attrition rate. Approval of the CMD/Director shall be sought on the revised Manpower Budget. Revised Manpower budget shall be assigned with a unique identification number. Home Process Owners 9. The original and the revised Manpower budget along with other documents such as Manpower estimation sheet shall be maintained by the HR Team. Key Inputs Key Key Key Activities Activities Activities Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 15
- 16. HUMAN RESOURCES 1. Recruitment Guiding Principles • Recruitmentshould be against a vacancy in the approved organization structure or approved Manpower plan. Home • Outside recruitment shall be resorted to, in a situation where recruitment for a vacancy cannot be met by employees within the company. Process Overview • The recruitment and selection shall be carried out on at least two-tier basis (Preliminary and Final) by Key Inputs duly constituted panels. Key Objectives 1.2 Key Process description – Recruitment – New Employee Requisition 1. A new person may be recruited in either of the following 2 mechanisms: – 2. Key Formats Pull Mechanism – A vacancy exists in the system on account of an employee separation – Process Owners Push Mechanism – A position exists per the manpower budget – A vacancy arises when an existing employee separates from the company A newly created position (as per the manpower budget) needs to be filled Help Key Outputs Key Output Vacancy 1. MIS Flowchart A Staff Requisition form shall be created when: – KPM Key Key Key Activities Activities Activities For all vacant positions in the organization, irrespective of the level of the employees, a standard Staff Requisition Form shall be prepared by the User department. 2. The Staff requisition form shall specify the job description (mentioned below) for the specific vacancy: – Job Title – Overall job purpose – Key tasks and duties – Key skills required for the job – Preferred qualifications, experience R&A 16
- 17. HUMAN RESOURCES 1. Recruitment 1.2 KeyProcess description – Recruitment – New Employee Requisition 3. The Staff Requisition form shall be approved by the HOD and submitted to the Head (HR). Subsequently, Head HR shall verify whether the requisition is budgeted as per the Manpower Budget. If the staff requisition is budgeted for, the Head (HR) shall discuss the requirement details with the concerned HOD. 4. If the staff requisition is not budgeted for, the Head HR shall discuss the requirement details with both the concerned HOD and CMD/Director. CMD/Director shall approve the unbudgeted staff requisition by way of sign-off on the hard copy of the staff requisition form. Home Process Overview 5. Key Inputs The Head HR, CMD/Director and the HOD shall first examine the following options: Key Objectives – – Increasing an employee‟s responsibilities – Process Owners Reorganizing work distribution among the current workforce Review whether the vacancy provides a suitable redeployment for an existing employee either by way of transfer from surplus staff or by way of up-gradation/ promotion. In all such cases of promotion/ transfers, the due process as applicable to open recruitment, such as interview, shall need to be gone through. Key Formats – Flowchart The Head HR in concurrence with the CMD/Director shall identify whether the vacancy can be posted on the Internal Job Postings site to give a chance to the existing work force in the KPM Key Key Key Activities Activities Activities Key Outputs Key Output organization to apply for the particular vacancy. In all such cases, the due process as applicable to open recruitment, such as interview, shall need to be gone through. 6. In case, the position cannot be filled up internally, the requisition shall be sent to the Manager MIS R&A Recruitment to initiate the process of sourcing applications from candidates. Manager Recruitment shall allocate the responsibility of recruitments to the Executive Recruitment. Help 17
- 18. HUMAN RESOURCES 1. Recruitment 1.2 KeyProcess description – Recruitment – New Employee Requisition 7. The Executive Recruitment shall maintain the following trackers which shall be updated on receipt of approved requisitions: Home – – Process Overview 8. Staff Requisition Tracker Source Tracker The staff requisition tracker which shall record the following: – Department – Date of requisition – Staff Requisition number – Job Title – Required by date – Process Owners Requisitioner – Key Objectives Key Inputs Budgeted/ Non-budgeted Key Key Key Activities Activities Activities Flowchart Key Formats 9. The staff requisition tracker shall facilitate the following: – MIS – Department wise Unbudgeted appointments – KPM Identify lead time to close an open position Evaluation of the selection process Key Outputs Key Output R&A Help 18
- 19. HUMAN RESOURCES 1. Recruitment 10. The SourceTracker shall record the following details: – – Source – 11. Job title – Process Overview Date of requisition – Home Staff Requisition no. No. of applicants from the particular source The Source Tracker shall facilitate the following: – Identification of number of selection vis-à-vis no. of applicants from a specific source – Key Objectives Key Inputs Cost-Benefit analysis of different sources Key Key Key Activities Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 19
- 20. HUMAN RESOURCES 1. Recruitment 1.3 KeyProcess Description – Sourcing and Screening 1. Home On basis of an approved requisition, the HR team shall proceed to fill up the vacant position from other sources such as: – – Paper advertisements, – Internal referrals and – Key Formats Recruitment agencies, – Process Owners Job portals, – Key Objectives Database of CVs, – Process Overview Reviewing applications Campus placements. 2. Job Applications shall be obtained from the candidates identified from different sources. Executive HR shall screen the applications on the basis of job description provided by the requisitioner in the Staff Requisition form. HR round shall be conducted (telephonic interview) to shortlist the candidates. Flowchart As per the identification of skill required shortlisting of options done by Manager (HR) and finally selected by Head HR. 4. Key Key Key Activities Activities Activities For the process of selection of Recruitment Agencies, Executive HR maintains separate register which contains details of different agencies like specialization area, Rate of commission , coverage areas etc. 3. Key Inputs Key Outputs Key Output KPM MIS 5. Help R&A The Executive Recruitment shall notify the short listed candidates about the interview via e-mail and/ or telephone with details of interview process and date & time of the interview. In cases where services of recruitment agencies are hired, then the agencies shall be asked to co-ordinate for the same. 20
- 21. HUMAN RESOURCES 1. Recruitment 5. Rejected applicationsshall be filed in a common file for Rejections by (Executive Recruitment) However, CVs that can be considered at a later date/ for another role shall be marked as “for future Home reference purpose” and filed accordingly. 6. Process Overview 7. Key Objectives All applications that were screened but not found to be suitable shall be marked as “rejected”. Details of the applications shall be updated in the Source tracker by Executive (Recruitment) against the specific requisition. The Executive (Recruitment) shall intimate the interview panel about the details of the interview such as date & time and provide them with the following documents: – Process Owners Key Inputs Interview assessment sheet – Key Key Key Activities Activities Activities Candidate Application/ CV Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 21
- 22. HUMAN RESOURCES 1. Recruitment 1.4 KeyProcess Description – New Employee Selection 1. On the date of the interview, the short listed candidate shall be required to fill up an Application Form, in case details of the employee are not mentioned in his CV. The application form shall be provided by the Executive (Recruitment). 2. The Application form shall be a standard form and shall capture following basic information: Home Process Overview – – Detailed educational qualifications – Key Objectives Key Inputs Name of the candidate and contact details Past Experience 3. Process Owners The filled up Application Form and CV shall be provided to the Interview Panel prior to the interview. 4. The candidates shall be interviewed by the interview panel as formed for the particular grade. The selection methods and the interview panel at different grades are presented in the following table: Key Key Key Activities Activities Activities Flowchart Key Formats Band Preliminary Round Final Round Group discussions/ written tests/ preliminary interview Interview Final Interview B01 X Head HR, HOD CMD B02 X Head HR, HOD CMD B03 X Head HR, HOD CMD B04 HR Team Head HR, HOD HR Round B05 HR Team Manager HR, Manager (Dept) HR Round B06 HR Team Manager HR, Manager (Dept) HR Round KPM MIS Help Key Outputs Key Output R&A 22
- 23. HUMAN RESOURCES 1. Recruitment 5. For Band04 and 05, the “HR team” team shall prepare and compile the written tests formats and obtain the concurrence of the Manager Recruitment. The written test shall help assess technical, analytical and communication skills of the candidate. 6. After the assessment, the Interview Panel members should review candidates‟ performances during the selection process and reach their decision based on the evidence gathered and record the same in the Interview Assessment Form. 7. On completion of above mentioned formalities, a background verification check shall be performed by the Executive (Recruitment), the results which shall be recorded in a Background verification Form. Subject to satisfactory background check report, an Offer Letter duly authorized as per DOA shall be posted/ e-mailed to the selected candidate by the Executive (Recruitment). Home Process Overview Key Objectives 8. Process Owners Key Key Key Activities Activities Activities If the candidate does not accept the offer within the date specified in the offer letter or rejects the offer, the Interview Panel and the creator of the Staff Requisition Form shall be notified along with the reason for rejection. The Interview panel may decide on: – Making a renewed offer to the same candidate, or – Flowchart Select any of the other candidates who attended the interview panel, or – Key Formats Key Inputs Intimating HR team to source fresh applications. Key Outputs Key Output KPM MIS R&A Help 23
- 24. HUMAN RESOURCES 1. Recruitment 9. The detailsof the selected candidate shall be updated in the Staff Requisition Tracker and Source Tracker, with Name of selected candidate Date of final selection – Process Overview – – Home Tentative date of joining – Source Key Inputs Key Objectives Key Key Key Activities Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 24
- 25. HUMAN RESOURCES 1. Recruitment Recruitment atSite 1. For employees joining at site, the recruitment process shall be carried out as per the Site Recruitment policy. The procedure to be followed shall be the same for recruitment done by the HO HR Team. 2. The first round of interview shall be conducted by the Executive (Recruitment) at site and reporting officers and a personnel at Manager or equivalent level from the specific department. The final approval of the Project Head, based out of site, shall be obtained. The employee selection documentation shall remain the same as mentioned earlier. Home Process Overview Key Inputs Key Objectives Key Key Key Activities Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 25
- 26. HUMAN RESOURCES 1. Recruitment 1.5 KeyProcess Description – Review of selection procedures 1. On a yearly basis, the HR department shall review the effectiveness of the Selection procedures and policies to assess effectiveness of the methodology being used. 2. The same shall be performed by the HR Team and the Head (HR) on the basis of the following parameters: Home Process Overview Key Inputs – – Key Objectives Target vs. Actual Staff cost as a percentage of total cost Attrition Rate – – Key Formats Performance of employees in the review period – Process Owners Budgeted vs. Non-budgeted recruits department wise during the year Acceptance Rates: number of applicants that accepted the position divided by the number of applicants that were offered the position Key Key Key Activities Activities Activities 3. The acceptable levels to be defined by Management to monitor the aforementioned parameters. 4. Flowchart On a periodic basis, an MIS shall be submitted to the Management reporting the aforementioned Key Outputs Key Output KPM parameters. MIS R&A Help 26
- 27. HUMAN RESOURCES 1. Recruitment 1.6 KeyProcess Description – Invoice Certification for Recruitment Agency 1. Home The Manager Recruitment on receipt of the invoice from the Placement agency for the employees referred and selected from the agency, shall forward the invoice to the Head (HR) along with the following supporting documents for approval: – Process Overview Appointment letter, Key Inputs – – Key Objectives Employee information form, Employee joining report, – – Process Owners 2. Key Formats Agreement with agency and Key Key Key Activities Activities Activities Source tracker Head (HR) shall review the invoices against the Source Tracker to identify that all invoices pertaining to the Placement Agency have been received and that there are no duplicate invoices for the same candidate. On review with Source Tracker, the Head (HR) shall mark the relevant candidate record in the tracker as invoice received. Flowchart Key Outputs Key Output KPM MIS 3. The Head (HR) shall authorize the invoice (by way of a sign-off on the invoice) on review of the aforementioned documents. 4. Approved invoice along with the aforementioned supporting documents shall be sent to the Accounts team for Accounting purpose. R&A Help 27
- 28. Process: Recruitment –Manpower Planning INPUTS Manpower Estimation Sheet Provide inputs on manpower requirements in a Manpower Estimation sheet OUTPUT PROCESS HOD Review and approve Manpower Estimation sheet Approved Manpower Estimation Sheet Manager Recruitment Manager (respective department) Notes Collect MES from each HOD and forward the same to MPC for finalization 1 Manpower Budget to be made on basis of: - Manpower requirement in current projects - Manpower requirement on expected projects - Manpower gaps in support functions Manpower Planning Committee (MPC) 1 Prepare and sign off Manpower budget based on manpower estimations Signed-off Manpower Budget Manpower budget may be 2 revised by the MPC at the midyear based on any business exigencies such as expected business growth, attrition rate. Approved Manpower Budget CMD/Director Review and Approve Manpower budget 28 2 HR Team
- 29. Process: Recruitment –New Employee Requisition - Vacancy OUTPUT PROCESS INPUTS 1 Staff Requisition Form HOD Approved Staff Requisition Form (For budgeted manpower) HOD shall approve the staff requisition form User department shall raise a Staff Requisition form Head (HR) User department Yes Notes 1 The Staff requisition form shall Requisition budgeted as per Manpower Budget? Discuss the requirement details with the concerned HOD to understand requirement No Discuss the requirement details with the concerned HOD and CMD/Director. Obtain approval from CMD/Director clearly specify the job description. A 29 Approved Staff Requisition Form (For non budgeted manpower)
- 30. Process: Recruitment –New Employee Requisition - Vacancy 1 Notes Outside recruitment will be resorted to, in a situation where recruitment for a vacancy cannot be met by employees within the company. A 1 Yes 2 The Head (HR), Director and the HOD to examine the following options: - Reorganizing work distribution among the current workforce - Increasing an employee‟s responsibilities - Redeployment for an existing employee - Identify whether the vacancy can be posted on the Internal Job Postings site OUTPUT PROCESS INPUTS Can the position be filled internally? No 3 2 Staff Requisition form to be sent to Manager (Recruitment) Regular Recruitment process to be followed Manager (Recruitment) Allocate the responsibility to the Executive (Recruitment) 3 Executive (Recruitment) to maintain 2 trackers (Staff Requisition Tracker & Source tracker) that shall serve following purpose: - Identify lead time to close an open position - Department wise Unbudgeted appointments - Eval. of the selection process - Identification of no. of selection vis-à-vis no. of applicants from a specific source - Cost-Benefit analysis of diff. sources Executive (Recruitment) Update Staff Requisition Tracker Update Source Tracker 30 Updated Staff Requisition Tracker Updated Source Tracker
- 31. Process: Recruitment –Sourcing & Screening OUTPUT PROCESS INPUTS Approved Staff Requisition Form HR Team New Employee Requisition Identify suitable candidates from different sources Obtain Job applications from the candidates Notes Executive (Recruitment) 1 Application screening to be done on basis of job description provided by the requisitioner in the Staff Requisition form. 1 Screen the applications based on job description 31 B
- 32. Process: Recruitment –Sourcing & Screening OUTPUT PROCESS INPUTS B Conduct HR round (telephonic interview) to shortlist the candidates 1 2 Rejected Applications shall be filed in a common file for Rejections and CV‟s that can be considered at a later date shall be shall be marked as “for future reference purpose” and filed accordingly Notify short listed candidates about the interview Short listed Candidates Intimate Interview panel about the details of the short listed candidates and the interview Notes Update Source Tracker 1 In case agency recruitment are hired, then agencies shall coordinate with the candidates. 2 A file to be maintained for rejected CVS and CVs that can considered in future. 32 Updated Source Tracker
- 33. Process: Recruitment –New Employee Selection OUTPUT PROCESS INPUTS Application Form Candidates to complete an Application Form Short listed candidate Completed Application form to be provided to Interview Panel Completed Application Form Blank Interview Assessment Form 1 Interview panel Signed-off Interview Assessment Form Notes The recruitment and selection 1 shall be carried out on at least two-tier basis (Preliminary and Final) by duly constituted panels. The candidates shall be interviewed by the interview panel as formed for the particular grade. For Band 04 and 05, the “HR team” team shall prepare and compile the written tests formats and obtain the concurrence of the Manager recruitment. The written test shall help assess technical, analytical and communication skills of the candidate. Take decision and document remarks in Interview Assessment Form Interview the short listed candidate Carry out candidate‟s background verification check Executive (Recruitment) C 33 Selected Candidate Background Verification Form
- 34. Process: Recruitment –New Employee Selection OUTPUT PROCESS INPUTS C 1 Issue an Offer Letter authorized by authorized personnel as per DOA matrix to the selected candidate Offer Letter to selected candidate Notes 1 Subject to satisfactory background check report, an Offer Letter duly authorized by authority as per DOA shall be posted/ e-mailed to the selected candidate by the Executive (HR Team). 2 Joining formalities include: - Organize for new joinee seating place - Organize for technical support (Desktop, network connection) (if need be) – If as per the company policy, the new joinee is eligible to get a laptop, the Executive (HR) shall coordinate with the IT department personnel to arrange for a laptop for the new joinee. - Organize for Joining Kit containing the employee handbook/ manual, office stationary, business cards, etc. Candidate Accepts the offer? Yes Executive (Recruitment) No 2 Notify Interview panel and creator of Staff Requisition Form Arrange for basic joining formalities Interview panel Updated Staff Requisition Tracker and Source Tracker Issue renewed offer letter to the same candidate or select any other candidate or Intimating HR team to source fresh applications 34
- 35. Process: Recruitment –Invoice Certification for Recruitment Agency PROCESS INPUTS Invoice from Placement Agency • Appointment letter • Employee information form, • Employee joining report, • Agreement with agency and • Source tracker OUTPUT Executive (Recruitment) 1 Forward the agency invoice along with supporting documents to Manager (Recruitment) Head (HR) 2 Approve the invoice based on supporting documents Approved invoice sent to Accounts department along with supporting documents Notes Supporting documents include 1 EIF filled by the employee and 2 details mentioned in the source tracker. On review with Source Tracker, the Head (HR) shall mark the relevant candidate record in the tracker as invoice received. Accounts Team Account for the invoice 35 Approved Invoice
- 36. HUMAN RESOURCES 1. Recruitment Key Output: − UpdatedStaff Requisition Tracker − Updated Source Tracker − New Personnel file − Approved invoices for recruitment agencies Home Process Overview Key Inputs Key Objectives Activities Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 36
- 37. HUMAN RESOURCES 1. Recruitment Responsibility &Authority Matrix : Responsibility Authority A/R Home S.No. Activity(A)/ Report (R) MPC CMD/Dire ctor Process Overview User Depa rtme nt Head HR HOD Executive (Recruitm ent) Interview Panel Key Inputs 1 Manpower Planning A E V 2 Manpower Budget A E V 3 Raises Staff Requisition A 4 Sourcing of applications A 5 New employee Selection A 6 Invoice Certification A 7 Source Tracker R E 8 Staff Requisition Tracker R E Key Objectives Process Owners Key Formats Executive at site V E Key Activities V E E E Flowchart E Key Outputs KPM MIS RR &A & A Help 37
- 38. HUMAN RESOURCES 2. New InducteeManagement Key Input: − Blank Employee information form − Blank Employee Joining report − Employee Joining checklist − New Bank Account Form Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 38
- 39. HUMAN RESOURCES 2. 2 New InducteeManagement Key Activities: The Key Activities in the Agree Marketing Parameters process are as below: Home 2.1 Employee Joining Process 2.2 Employee Induction Process Process Overview Key Inputs 2.3 New Bank Account Opening Process 2.4 Culture Sensitization Program Key Objectives Key Key Key Activities Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 39
- 40. HUMAN RESOURCES 2.1 New InducteeManagement – Employee Joining Process- Corporate 2.1 Key Process Description – Employee Joining Process 1. Post selection of the candidate, the HR (Recruitment) team handover the related information of candidates to HR (core) team for further joining process. The Executive (HR) shall start making following arrangements for new joinee: • Organize for new joinee seating place • Home Organize for technical support (Desktop, network connection) (if need be) – If as per the company policy, the new joinee is eligible to get a laptop, the Executive (HR) shall coordinate with the IT department personnel to arrange for a laptop for the new joinee. Process Overview • Key Objectives 2. Process Owners Organize for Joining Kit containing the employee handbook/ manual, office stationary, business cards, etc. On the date of joining, the new joinee/ employee shall report to the HR department. The HR team shall provide the new joinee with an Employee Information Form (EIF) and an Employee Joining Report (EJR). 3. Key Inputs Key Key Activities Activities If the joinee was referred to by any recruitment agency/ internal referral, then the joinee shall be asked to quote the same on the EIF. In the meanwhile, HR Team shall verify all credentials/documents as sought in the Appointment Letter. HR Team shall use joining checklist to ensure coverage of all documents / activities to be done by the Flowchart joinee. Key Formats i) Each new joining employee shall also sign the “Code of Conduct” and “Rules and Regulations” of the company and fill up the PF , ESI form (if applicable) and Tax Declaration forms. ii) On verification of credentials, the HR team shall obtain the filled Employee information form, KPM MIS Key Outputs Key Output Employee Joining Report and signed Appointment Letter from the new joinee. The Authorized personnel as per company‟s DOA shall counter sign the EJR and the Appointment Letter.` iii) Appointment Letter shall be prepared in Triplicate. Sign-off of the employee and the authorized personnel shall be obtained on all the copies. A copy of the Appointment letter shall be given to New Joinee, one shall be sent to Accounts Team and third copy shall be filed in employee file. R&A iv) The EJR shall be forwarded to the employee‟s department which shall be signed- off by the HOD of the joinee. On signing-off the EJR, the same shall be sent back to the HRD. Help v) The HR team shall forward the completed and approved forms (Employee joining Report, Employee information form, Appointment letter) to the Executive (HR) for updation of the employee master. 40
- 41. 2.1 New InducteeManagement – Employee Joining Process- Corporate HUMAN RESOURCES vi) Executive (HR) shall use the authorized EJR and appointment letter as the trigger to create the Employee Master record (refer: sec Employee Master of this document). On creation of a new record in the Employee Master, a new/ unique Employee Code shall be generated. Home vii) The Executive (HR) shall file all employee particulars in the Employee Personal File. The Personal file cover shall be marked with the employee name and Code. viii) A Personnel File Checklist shall be pasted on the inner side of the cover of the Personal file and Process Overview ticked for documents filed. This shall provide a ready reference for the documents already filed and Key Inputs documents pending for filing. ix) The Executive (Payroll) shall create a new record in the payroll master/ tax master on the basis of Key Objectives approved appointment letter, EJR and tax declaration submitted by the employee. (refer: Payroll SOP for further details). Key Key Activities Activities x) For employees joining at site, the joining formalities shall be carried out at the site. The employee Process Owners files shall be maintained at a central repository place in HO by Executive (HR). Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 41
- 42. 2.1 New InducteeManagement – Employee Joining Process- Site HUMAN RESOURCES 2.1 Key Process Description – Employee Joining Process-site 1. On the date of joining, the employee shall report at the local HR at the site. The joining formalities shall be carried out at the site for each level. The Executive (HR) at site shall provide the new joinee with an Employee Home Information Form (EIF) and an Employee Joining Report (EJR). 2. If the joinee was referred to by any recruitment agency/ internal referral, then the joinee shall be asked to quote the same on the EIF. In the meanwhile, Executive (HR) at site shall verify all credentials/documents as sought in Process Overview Key Inputs the Appointment Letter. Executive (HR) at site shall use joining checklist to ensure coverage of all documents / activities to be done by the joinee. Key Objectives 3. Each new joining employee shall also sign the “Code of Conduct” and “Rules and Regulations” of the company and fill up the PF, ESI form (if applicable) and Tax Declaration Form. 4. Process Owners On verification of credentials, the Executive (HR) at site shall obtain the filled Employee Information form, Employee Joining Report and signed Appointment Letter from the new joinee. Executive (HR) at site shall obtain sign-off of the Project Head on the Employee Joining report. Key Formats Key Key Activities Activities 5. Flowchart The employee documents shall then be sent to the HO. The Appointment letter shall be signed-off at HO by the Authorized personnel as per company‟s DOA. The employee files shall be maintained at a central repository place in HO by Executive (HR) at HO. For details on addition of employee to the employee refer to Master Management section of this SOP. Key Outputs Key Output KPM MIS R&A Help 42
- 43. 2.2 New InducteeManagement – Employee Induction Process HUMAN RESOURCES 2.2 Key Process Description – Employee Induction Process – All employees who join the company at all levels shall undergo an induction program. The objective of the induction program is to familiarize the new joinee with the values and norms of the company, company‟s history, rules & regulations, facilities and practices. Home – On the date of joining, the new joinee shall be informed of their roles and responsibilities by the Manager (HR). At site, the induction shall be undertaken by Executive (HR) at site Process Overview – The On-Boarding employee shall be provided with an employee hand-book which shall give details of HR policies Key Inputs and practices. Key Objectives – Executive (HR) shall coordinate with the bank personnel and initiate the process of opening the bank account of the new joinee. Further, he shall also organize in obtaining PAN number (in case the same does not exist) and for getting a corporate phone connection for the new joinee. Key Formats – Executive (HR) shall further coordinate and organize for new joinee‟s Employee ID and Medical ID. – Process Owners After induction or with in 4 days of joining welcome mail forwarded. – Key Key Activities Activities Welcome mail shall be drafted by Executive (HR) which is reviewed by Manager(HR) and finally approved by Flowchart Head (HR). – After approval from Head HR drafted welcome mail forwarded by Executive (HR) Key Outputs Key Output KPM MIS R&A Help 43
- 44. 2.3 New InducteeManagement – Bank account Opening Process HUMAN RESOURCES 2.3.1 Key Process Description –New Joinee Bank Account Opening Process Opening of bank accounts for the new joinee -HO Executive HR shall arrange for the opening a bank account for the new joinee. New Joinee shall fill up the New Bank Account Form with the details. The same shall be forwarded to Head HR 3. Head HR shall sign off the Form and the form shall be forwarded to the Bank. 4. Process Overview 1. 2. Home On receipt of the Bank Account details, Executive HR shall document the details in personnel file Key Inputs Opening of bank accounts for the new joinee - Site Key Objectives 1. Executive (Admin - Site) shall arrange for the opening a bank account for the new joinee. 2. New Joinee shall fill up the New Bank Account Form with the details. The same shall be forwarded to Project Head. 3. Project Head shall sign off the Form and the form shall be forwarded to the Bank. 4. On receipt of the Bank Account details, Executive (Admin - Site) shall forward the details to HR, Payroll and Site Accountant. Process Owners Key Formats Key Key Activities Activities Flowchart Key Outputs Key Output KPM MIS R&A Help 44
- 45. 2.3 New InducteeManagement – Culture Sensitization Program HUMAN RESOURCES 2.4 Key Process Description – Conducting of Culture Sensitization Program 1. After the completion of induction program a Culture sensitization program is being framed by the Execuitve HR. Home 2. Process Overview Framed Program schedule shall be reviewed by Manager HR periodically preferably quarterly. 3. Program shall be conducted as devised by Head HR .Executive (HR) will coordinate Head HR regarding framing and scheduling the program, 4. Key Objectives At the end of program feedback forms to be received from new joinees. 5. In this program employee come to know about work culture of company & be able to improve required Key Inputs skills for the industry. Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 45
- 46. Process: Recruitment –Employee Joining Process OUTPUT PROCESS INPUTS Blank Employee Information Form New Joinee Blank Employee Joining Report Completes the EIF, EJR, ESI ,PF form & Tax declaration Signs Draft Appointment Letter Draft Appointment Letter 1 E.S.I. form and P.F. form (if applicable) HR Team IT Declaration Form Notes 2 Verify credentials vis-à-vis Appointment Letter 1 Appointment Letter shall be prepared in Triplicate. Sign-off of the employee and the authorized personnel shall be obtained on all the copies. A copy of the Appointment letter shall be given to New Joinee, one shall be sent to Accounts Team and third copy shall be filed in employee file. Authorized personnel as per DOA Counter signs the EJR and Appointment Letter 2 Credentials include Relieving D letter from previous organization, last pay slip, CV 46 Approved Appointment Letter
- 47. Process: Recruitment –Employee Joining Process PROCESS INPUTS Employee Joining Report sent to HOD of employee‟s department for approval D Creation of new record in employee master OUTPUT Approved Employee joining Report Master Management 1 Notes 1 Refer to Master Management Ensure coverage of all the documents / activities to be done by the new joiner with the Joining checklist process for details on process for creation of a new record in employee master. 2 For employees joining at site, the joining formalities shall be carried out at the site. The employee files shall be maintained at a central repository place in HO by Executive (HR). File all employee particulars in Employee personnel File 2 47
- 48. Process: Recruitment –Employee Joining Process – Recruitment at Site Approve the employee selected Project Head OUTPUT PROCESS INPUTS Employee Filled EIF and EJR and signed off appointment letter forwarded for sign off Reports at local HR at the site on date of joining to carry out the joining formalities Project Head 2 Interview the candidates Executive (HR) at site Provide EIF and EJR to employee for filling Executive (HR) at site and Reporting Officer / Personnel (Managerial level) Sign off the EJR and the documents are forwarded to HO Authorized personnel as per DOA 1 Site Recruitment Policy Notes Counter signs the EJR and Appointment Letter Verify credentials vis-à-vis Appointment Letter Approved Employee Joining Report If the joinee was referred to by 1 any recruitment agency/ internal referral, then the joinee shall be asked to quote the same on the EIF. Ensures coverage of all the documents / activities to be done by the new joiner with the Joining checklist Approved Appointment Letter The employee files shall be 2 maintained at a central repository place in HO by HR Team. Code of conduct and Rules & Regulations to be signed by the new joiner and fill up the PF and ESI form (if applicable) 48
- 49. Process: Recruitment –Employee Induction Process OUTPUT PROCESS INPUTS 2 Manager (HR) Undertake induction process for new joinees Inform new joinees about their roles and responsibilities 1 Employee handbook/ manual Provide the new joinee with an Employee Handbook Notes 1 Employee hand-book shall give details of HR policies and practices. 2 At site, the induction shall be undertaken by Executive (HR) at site 49
- 50. Process: Recruitment –Employee Induction Process INPUTS Draft Welcome mail PROCESS OUTPUT Executive (HR) Draft mail reviewed by Manager HR After review by Manager (HR) welcome mail shall be approved by Head HR Approved welcome mail forwarded by Executive (HR) Notes 50 Approved Welcome mail
- 51. Opening of bankaccounts for the new joinee - HO INPUTS New Bank Account Form PROCESS OUTPUT New Joinee Fills up the New Bank Account Form with the details New Bank Account Form filled Forwards the Filled New Bank Account Form to Head (HR & Admin) Head (HR & Admin) Notes Signs off the Form and forwards it to the Bank Executive (Admin) On receipt of the Bank Account details, forwards the details to HR, Payroll and Accounts department 51 Signed New Bank Account Form
- 52. Opening of bankaccounts for the new joinee - Site INPUTS New Bank Account Form PROCESS OUTPUT New joiner Fills up the New Bank Account Form with the details New Bank Account Form filled Forwards the Filled New Bank Account Form to Project Head Project Head Notes Signs off the Form and forwards it to the Bank Executive (Admin Site) On receipt of the Bank Account details, forwards the details to HR, Payroll and Site Accountant 52 Signed New Bank Account Form
- 53. Culture Sensitization Program PROCESS INPUTS 1 FramedProgram schedule OUTPUT Executive HR Conduct the culture sensitization program as devised by the Head HR Receive feedback from the new joinee regarding the program Notes 1 Framed Program schedule shall be reviewed by Manager HR periodically preferably quarterly 53 Successful Program
- 54. HUMAN RESOURCES 2. New InducteeManagement Key Output: − Completed Employee Joining Report − Completed Employee Information Form − Appointment Letter to the New joinee − Generation of new employee code − Entry in Employee/ Payroll master − New Personnel file − Completion of Bank Formalities Home Process Overview Key Inputs Key Objectives Process Owners Activities Key Activities Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 54
- 55. HUMAN RESOURCES 2. New InducteeManagement Responsibility & Authority Matrix : Responsibility Authority A/R S.No. Home Activity(A)/ Report (R) Head HR Manager (HR) Executive (HR) Executive at site Process Overview 1 Employee Joining Process A 2 Employee Joining Process at site A 3 Employee Induction process A 4 Employee Induction process at site A 5 Opening of Bank Accounts A Key Objectives Process Owners V Key Inputs E E E Key Activities E V E E Flowchart 6 Key Formats Culture Sensitization program A V E Key Outputs KPM MIS RR &A & A Help 55
- 56. HUMAN RESOURCES 3. HR Documentation KeyInput: − Employee confirmation form − Other employee related documents Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 56
- 57. HUMAN RESOURCES 3.1 HR Documentation– Employee Confirmation 3.1 Key Process Description – Employee Confirmation Process 1. All employees below level B02, shall be under probation before confirmation of their service. The Probation period shall be for a minimum of six months from the date of joining of the employee. This may be extended at the discretion of the Management. 2. On the completion of an employee‟s probationary period, HRD and the employee‟s department should endeavor to take a speedy decision on: Home Process Overview – Confirmation of the employee, or – Extension of the employee‟s probationary period, or – Key Inputs Termination of the employee‟s services Key Objectives Key Key Key Activities Activities Activities Process Owners 3. On completion of the employee‟s probationary period, Executive (HR) shall send an Employee Confirmation Form to the employee for completing the Self Appraisal section of the form. Post filling up the required section, the employee shall handover the form to the HOD of the concerned department. 4. The HOD shall review the performance of the employee against defined parameter. On completion of the form, the HR Team shall interact with the employee for employee performance counseling and Key Formats KPM Flowchart Key Outputs Key Output feedback. MIS 5. Head (HR) and the employee‟s HOD shall then discuss and decide on the confirmation of the employee. If no unanimous decision is arrived at, the same shall be escalated to the Director (Corporate affairs) whose decision shall be binding. R&A Help 57
- 58. 3.1 HR Documentation– Employee Confirmation HUMAN RESOURCES 6. Based on the final decision taken, the Employee confirmation form shall accordingly be marked and a Confirmation letter / Probation extension letter or Termination letter shall be issued to the employee. Home Process Overview 7. The relevant letter shall be prepared by Manager (HR) and approval of Head (HR) and CMD/Director shall be sought on the same. 8. In case, the services of the employee stand terminated, refer to section “Employee Separation” for details. 9. Key Objectives The relevant letter (either a Confirmation letter/ Probation extension letter or Employee termination letter) shall be filed in the employee file by the Executive (HR). Key Inputs Key Key Key Activities Activities Activities Process Owners Flowchart Key Formats Key Outputs Key Output KPM MIS R&A Help 58
- 59. 3.1 HR Documentation– Other Documents HUMAN RESOURCES 3.2 Key Process Description – Maintaining of other Employee related Documents 1. Executive (HR) maintains a file for every personnel containing all details of employee Home 2. This File contain details like • • Family details • Details of dependent • IT declarations • PF declarations • Process Overview Employee joining report Gratuity Declarations Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart • details of Mediclaim etc. Key Formats 3. These shall be monitored by Manager HR on certain time interval. Key Outputs Key Output KPM MIS 4. On timely manner these files should be updated by the Executive (HR) R&A Help 59
- 60. Process: HR Documentation– Employee Confirmation Process OUTPUT PROCESS INPUTS Employee Employee Confirmation Form Employee to complete the self appraisal section of the form and send it to HOD HOD On completion of an employee‟s probation period, ECF sent to employee Review performance of employee and note comments in form Executive (HR) Filled Employee Confirmation Form HR Team Interact with the employee for employee performance counseling and feedback Head (HR) and employee‟s HOD Notes 1 HRD and the employee‟s HOD to take decision on: - Confirmation of the employee, - Extension of the employee‟s probationary period, - Termination of the employee‟s services 1 Decide on Confirmation of the employee If no unanimous decision is arrived at, the same shall be decided by CMD/Director 60 E
- 61. Process: HR Documentation– Employee Confirmation Process PROCESS INPUTS E OUTPUT Manager (HR) Prepare Confirmation Letter/ Probation Extension Letter/ Termination Letter Head (HR) and Director Approve the letter Notes Employee Confirmation Letter Probation Extension Letter Executive (HR) File the letter in the employee file 61 Termination Letter Employee Separation
- 62. Process: HR Documentation– Other employee related Documents INPUTS Employee Joining PROCESS OUTPUT Executive HR Report/confirmation IT declarations Maintains separate file for every personnel Family & Dependent Details If any alterations taken place in future PF Declarations updated by Executive HR on timely manner Gratuity Declaration Manager HR will review the file on fixed Updated employee interval basis. personal File Notes All files of employees are maintained centrally at HO 62
- 63. 3. HR Documentation HUMAN RESOURCES KeyOutput: − Decision on employee confirmation − Employee personal file Home Process Overview Key Inputs Key Objectives Activities Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 63
- 64. HUMAN RESOURCES 3. HR Documentation Responsibility& Authority Matrix : Responsibility Authority A/R Home S.No. Activity(A)/ Report (R) Director HOD Head HR Manager (HR) Executive (HR) Process Overview Key Inputs 1 A 2 Key Objectives Employee Confirmation Employee other Documentation R E E V E Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 64
- 65. HUMAN RESOURCES 4. Master Management KeyInput: – Employee Joining Report – Employee Information Form – Appointment Letter – Change Master Record Request Form – Block/ Unblock Master Record Request Form Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 65
- 66. HUMAN RESOURCES 4. Master Management KeyActivities: 4.1 Employee Master Maintenance Home Process Overview Key Inputs Key Objectives Key Key Key Activities Key Activities Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 66
- 67. HUMAN RESOURCES 4. Master Management GuidingPrinciples • The Master management activities shall be performed by the HR Personnel. However, the duties of Employee Master Management and Payroll Master Management shall be segregated, with different employees managing these Master files and not having access to the Masters for which they are not Home responsible Process Overview • Master records can be created, modified and blocked / un-blocked for transactions. However Master records should not be deleted • Process Owners Key Formats The company shall perform, on a time-to-time basis, an audit check of all Masters to ensure that all changes made to the Master files have been duly authorized • An entry shall be present for each employee in the organization in the employee master • Key Objectives Only Executive (HR) shall have read and write access to Employee Master. Manager (HR) on a case to case basis may authorize only read access to other employees • Employee Master to contain his personal details, details regarding the family members and dependents of each and every employee, the training taken details, details regarding the equipment assigned and assets assigned to him. Key Inputs • • MIS Flowchart Employee Master should contain name of the delegatee of the employee, who be perform the duties of the employee availing leave. The same shall be linked to the Leave records of the particular employee so as to automatically trigger delegation of employee duties in case of absence of employee. KPM Key Key Activities Activities Employee master shall also document details regarding the personal Insurance coverage and medical insurance coverage (applicable on him and his dependents) Key Outputs R&A 4.1.1 Key Process description – Employee Master – Create Employee Master Record Help 1. A new employee record shall be created in the employee master on recruiting a new employee. 67
- 68. HUMAN RESOURCES 4. Master Management 4.1.1Key Process Description – Employee Master – Create Employee Master Record 1. For creation of master record, Executive (HR) shall utilize the Employee Joining Report (EJR) along with Appointment letter signed-off by the new joinee, joinee‟s HOD and by the authorized signatory as per DOA. Executive (HR) shall also utilize the PF & ESI and Employee information form (EIF) and other forms signed-off by the employee. 3. Executive (HR) shall verify that an Employee Master record does not already exist in the system for new joinee. If an Employee Master record already exists then Manager (HR) shall be notified. Manager (HR) and Head (HR) shall then resolve the issue. Key Inputs 4. Executive (HR) shall obtain the required employee information from the Employee‟s Information Form for data entry in the master. Key Key Activities Activities 5. Executive (HR) shall create a new record in the Employee Master and a new Employee Code shall be assigned to the employee. Home Process Overview Key Objectives Process Owners Key Formats # # # # # Flowchart # Key Outputs KPM 6. Each employee shall be allotted a new Employee Code which will be alphanumeric The coding convention is as follows: – Field 1 shall specify the location allotted alphabet – Field 2 and 3 shall specify year of joining of the employee – MIS Fields 4, 5 and 6 form a running series. R&A Help 68
- 69. HUMAN RESOURCES 4. Master Management – – Home 7. ProcessOverview Employee Codes shall be allocated sequentially based on employee joining dates (employees joining earlier shall be allocated a smaller number as Employee Code) All generated Employee Codes shall be unique. At the time of creation of employee record, the Executive (HR) shall ascertain whether the employee is eligible for provident fund (PF) or employee state insurance (ESI). In case the employee is eligible for ESI or PF (and has opted to be covered under PF), the Executive (HR) shall update the same in the master. Process Owners 8. After generation of the Employee Code, Executive (HR) shall manually write down the employee code on the Employee Information Form and the Employee Joining Report. 9. Executive (HR) shall take two copies of the signed EJR. One copy shall be sent to Accounts and the other to the HOD of the new employee‟s department. 10. Key Objectives On creation of a record by Executive (HR), the print of the added record shall be taken which shall be reviewed and approved by Manager (HR). Any additions to the employee Master shall be approved by the Manager (HR) who shall review the additions to the master against the base documents such as EJR, EIF and Appointment Letter. Key Inputs Key Key Activities Activities Flowchart Key Formats Key Outputs KPM 11. MIS In an ERP environment, on creation of a record by Executive (HR), the same shall fall in Manager (HR) approval queue. Employee master record shall get activated on approval of the Manager (HR). Any additions to the employee Master shall be approved by the Manager (HR) who shall review the additions to the master against the base documents such as EJR, EIF and Appointment Letter. R&A Help 69
- 70. HUMAN RESOURCES 4. Master Management GuidingPrinciples • HR-generated fields in the Employee master should not be modifiable by accessing Payroll /Tax Masters. Home • Only the concerned employee, Manager (HR) and the HoD of the concerned employee are allowed to issue requests for changing Employee Master Record. Process Overview • Executive (HR) and Manager (HR) on a case to case basis shall determine if the requisite change Key Inputs form is to be supported by documentary proof. • Key Objectives No changes to an Employee Master record are allowed if the same has been blocked. • Executive (HR) shall coordinate with the requisitioner to ensure that the right record is being changed. However, the responsibility of the accuracy of the Change Master Record Request Form lies with the Key Key Activities Activities requisitioner. Process Owners Flowchart 4.1.2 Key Process description – Employee Master – Change Employee Master Record Key Formats 1. The process of changing Employee Master shall be initiated by the requisitioner ((Concerned employee/ HOD/ Executive (HR)) by filling up a Change Master Record Request Form. Key Outputs KPM MIS 2. The form shall be authorized by the HOD and Manager (HR). The requisitioner shall put in “Employee Master” in the field asking for “Relevant Master”, Employee Code in the field for “Record code” and Employee name in the field for “Record name“.), Proof (if necessary) for required change. 3. Executive (HR) shall receive the filled and authorized Change Master Record Request Form from the Requisitioner. R&A Help 70
- 71. HUMAN RESOURCES 4. Master Management 4. Onreceipt of the approved Change Master Record Request Form, Executive (HR) shall check the following: – Employee Code and Employee name match in the Employee Master. – Home Employee Master record matches with the corresponding entries in the Change Master Record Request Form. Process Overview Key Inputs – Key Objectives 5. Check the accuracy of the requisitioner‟s signature. If there are any mismatches then Executive (HR) shall notify the requisitioner accordingly and return the Change Master Record Request Form. 6. Executive (HR) shall make changes in the relevant record of the Employee Master as designated in the Change Master Record Request Form. 7. Any modifications to the employee master shall be approved by the Manager (HR). On change of a record by Executive (HR), the print of the same shall be taken which shall be reviewed and approved by Manager (HR). 8. In an ERP environment, on change of a record by Executive (HR), the same shall fall in Manager (HR) approval queue. Only on approval of the Manager (HR) the particular change shall get activated. 9. Manager (HR) shall review the modification to the master against the base documents such as authorized Change Master Record Request Form and other documentary proofs (if necessary). Process Owners Key Formats KPM MIS Key Key Activities Activities Flowchart Key Outputs R&A Help 71
- 72. HUMAN RESOURCES 4. Master Management 9. Home ProcessOverview Executive (HR) shall send an email / letter to the requisitioner and / or the concerned employee confirming the change made. A scanned image of the signed Change Master Record Request form shall also be attached in the email. In addition, based on the “need to know principle” Executive (HR) shall mark copies of the email to all other relevant staff depending of the facts of the case. (e.g. Notification for changes to employee name may need to be sent across the organization). 10. The Change Master record request form shall be sent to the Executive (HR) for filing it in the concerned employee‟s personal file. Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 72
- 73. HUMAN RESOURCES 4. Master Management GuidingPrinciples • No transaction can be processed for an employee (including payroll processing) as long as the Employee Master Record is blocked for that employee Home • Blocking / Unblocking of Employee Master can only be authorized by the Head (HR). Additionally a minimum of 1 signature (HOD) is required for blocking / unblocking of Employee Master records Process Overview Key Inputs 4.1.3 Key Process description – Employee Master – Block/ Unblock Employee Master Record Process Owners 1. An employee‟s record shall be blocked in the Master when an employee separates from the company. 2. Key Objectives The process of blocking a record in the Employee Master shall be initiated by the HOD of the employee whose record needs to be blocked. 3. The HOD shall send a request to the Executive (HR) of blocking the Master in a Block Master Record Request Form on authorizing the same by way of a sign-off. KPM 4. On receipt of Block Master Record Request form, the Executive (HR) shall verify the following: – Employee Code and the Employee name match in the Master. – Master record matches with the corresponding entries in the Block Master Record Request Form. Key Outputs Authorization by the HOD and Head (HR) on the form – MIS Flowchart A final approval of the Head (HR) shall be obtained to go ahead with blocking the record in the Master. 5. Key Formats Key Key Activities Activities R&A Help 73
- 74. HUMAN RESOURCES 4. Master Management 6. Home ProcessOverview If there are any mismatches then Executive (HR) shall notify the requisitioner accordingly and return the Block Master Record Request Form 7. Executive (HR) shall block / unblock the Employee Master record for the employee designated in the Block Master Record Request Form (as mentioned in “Action Step” field of the form). 8. On blocking of a record by Executive (HR), a print of the same shall be taken which shall be reviewed and approved by Manager (HR). 9. Key Formats In case of an ERP environment, on blocking of a record by Executive (HR), the same shall fall in Head (HR) approval queue. Only on approval of the Head (HR) the particular employee record shall be blocked. Key Objectives Process Owners Key Inputs 10. 11. Key Key Activities Activities Any blocking/ unblocking to the employee master shall be approved by the Manager (HR) who shall review the blocking / unblocking to the master against the base documents such as authorized Block/ Unblock Master Record Request Form and other documentary proofs (if necessary). Flowchart Executive (HR) shall send an email / letter to Manager (HR), Head (HR), Accounts Team and the HoD of the concerned employee, confirming the blocking / unblocking made. A scanned image of the signed Block record request form shall also be attached with the email. Key Outputs KPM 12. MIS The Block Master record request form shall be sent to the Executive (HR) for filing it in the concerned employee‟s personal file. 13. On a monthly basis, Head (HR) shall review a system generated report that provides details of records created/ modified and blocked during the month. R&A Help 74
- 75. HUMAN RESOURCES 4. Master Management SystemInterface Control 1. On creation of a record in Employee master by Executive (HR), the same shall be listed in approval queue of Manager (HR). Employee master record shall get activated on approval of the Manager (HR). 2. Any modifications to the employee master shall be approved by the Manager (HR). On change of a record by Executive (HR), the same shall fall in Manager (HR) approval queue. Only on approval of the Manager (HR) the particular change shall get activated. Home Process Overview 3. Blocking / Unblocking of a record in the employee master shall be approved by the Manager (HR). On blocking / unblocking of a record by Executive (HR), the same shall fall in Manager (HR) approval queue. Only on approval of the Manager (HR) the particular change shall get activated. 4. Access to Employee Master and Payroll Master shall be restricted to two independent individuals. 5. Key Objectives Key Inputs No transaction can be processed for an employee (including payroll processing) as long as the Employee Master Record is blocked for that employee. Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 75
- 76. Process: Master Management– Employee Master – Create Employee Master Record Employee Joining Report Appointment Letter Employee Information Form 1 2 Executive (HR) Does Employee Master record already exists in the system? Yes Notify Manager (HR) PF & ESI form 1 Notes Signed-off Employee Joining Report (EJR) and Appointment Letter shall form the trigger for Executive (HR) to create a new employee record. OUTPUT PROCESS INPUTS Manager (HR) and Head (HR) to resolve the issue 2 Access to Employee Master and Payroll Master shall be restricted to two independent individuals. 76 No F
- 77. Process: Master Management– Employee Master – Create Employee Master Record PROCESS INPUTS Notes OUTPUT F At the time of creation of 1 employee record, the Executive shall enter whether the employee has opted for PF, eligibility for ESI in the master based on the PF & ESI form Information of employee obtained from the Employee‟s Information Form for data entry On creation of a record by 2 Executive (HR), the print of the added record shall be taken which shall be reviewed and approved by Manager (HR). Any additions to the employee Master shall be approved by the Manager (HR) who shall review the additions to the master against the base documents such as EJR, EIF and Appointment Letter. In an ERP environment, on creation of a record by Executive (HR), the same shall fall in Manager (HR) approval queue. Employee master record shall get activated on approval of the Manager (HR). Any additions to the employee Master shall be approved by the Manager (HR) who shall review the additions to the master against the base documents such as EJR, EIF and Appointment Letter. 1 Generation of new employee record and code in Employee Master New employee record created in Employee Master Mention employee code on the Employee Information Form and the Employee Joining Report Take 2 copies of EJR, one sent to Accounts and other to HoD of concerned dept Manager (HR) 2 Review and approve additions to the Employee Master Approved Employee Master 77
- 78. Process: Master Management– Employee Master – Change Employee Master Record Change Master Record Request Form Send a completed Change Master Record Request Form to HOD/ Manager (HR) for authorization Requisitioner (Concerned employee/ HoD/ Executive (HR)) 1 OUTPUT PROCESS INPUTS HoD/ Manager (HR) Authorize the Change Master Record Request Form Notes No changes to an Employee Master record are allowed if the same has been blocked. 2 Verify Change Master Record Request Form vis-à-vis Employee Master record On receipt of the Change Master 2 Record Request Form, Executive (HR) shall check the following: - Employee Code and Employee name match in the Employee Master. - Employee Master record matches with the corresponding entries in the Change Master Record Request Form. - Check the accuracy of the requisitioner‟s signature Executive (HR) 1 Mismatches between CMRF and Employee Master record? No Yes Notify the requisitioner and return the Change Master Record Request Form 78 G Authorized Change Master Record Request Form
- 79. Process: Master Management– Employee Master – Change Employee Master Record OUTPUT PROCESS INPUTS G Make changes in relevant record based on CMRF Updated Employee Master Manager (HR) Notes 1 Any modifications to the employee master shall be approved by the Manager (HR). On change of a record by Executive (HR), the print of the same shall be taken which shall be reviewed and approved by Manager (HR). In an ERP environment, on change of a record by Executive (HR), the same shall fall in Manager (HR) approval queue. Only on approval of the Manager (HR) the particular change shall get activated Review and approve modification to the Employee Master 1 Approved Employee Master Executive (HR) Email/ letter sent to requisitioner and / or concerned employee and other relevant staff confirming the change made 79 CMRF sent to the Executive (HR) for filing
- 80. Process: Master Management– Employee Master – Block/Unblock Employee Master Record Signed Block Master Record Request Form Request to Block the Employee record OUTPUT PROCESS INPUTS Head (HR) 1 Approved Change Master Record Request Form Approve Block Master Record Request Form HoD of the employee 1 Notes An employee‟s record shall be blocked in the Master when an employee separates from the company Verify Block Master Record Request Form vis a vis Employee Master record Executive (HR) 2 On receipt of Block Master 2 Record Request form, the Executive (HR) shall verify the following: - Authorization by the HOD and Head (HR) on the form - Employee Code and the Employee name match in the Master. - Master record matches with the corresponding entries in the Block Master Record Request Form. Any mismatches between BMRF vis-a-vis Employee Master record? Yes Notify the requisitioner and return the Block Master Record Request Form 80 No H
- 81. Process: Master Management– Employee Master – Block/Unblock Employee Master Record OUTPUT PROCESS INPUTS H Notes 1 On blocking of a record by Executive (HR), a print of the same shall be taken which shall be reviewed and approved by Manager (HR). In case of an ERP environment, on blocking of a record by Executive (HR), the same shall fall in Head (HR) approval queue. Only on approval of the Head (HR) the particular employee record shall be blocked. Block Employee master for employee based on BMRF Employee Master blocked for employee based on BMRF Manager (HR) 2 Review and approve blocking 1 of record in the Employee Master Approved & updated Employee Master 2 No transaction can be processed for an employee (including payroll processing) as long as the Employee Master Record is blocked for that employee. Email/ letter sent to Manager (HR), Head (HR), Accounts Team and the HoD of the concerned employee, confirming the blocking made Head (HR) On a monthly basis, review a system generated report that provides details of records created/ modified and blocked during the month BMRF shall be sent to the Executive (HR) for filing 81
- 82. HUMAN RESOURCES 4. Master Management KeyOutput: − Employee Code − New entry in Employee Master − Modification of employee master record − Blocking/ Unblocking of employee master record Home Masters Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs Key Outputs KPM MIS R&A Help 82
- 83. HUMAN RESOURCES 4. Master Management Responsibility& Authority Matrix : Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 83
- 84. HUMAN RESOURCES 5. Employee Benefits KeyInputs: − Facility requisition Form − Travel Requisition Form − Employee Nomination Form − Employee Group Insurance policy − Employee Family Benefit Scheme Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 84
- 85. HUMAN RESOURCES 5. Employee Benefits KeyActivities: The Key Activities in the Employee Benefits are as below: Home 5.1 Employee Mobile Phone Scheme 5.2 Employee Laptop Scheme Process Overview Key Inputs 5.3 Employee Travel 5.4 Salary Advance Key Objectives 5.5 Employee Relocation/ Transfer Process Owners Key Key Activities Activities 5.6 Employee Group Insurance Policy 5.7 Employee Family Benefit Scheme Flowchart Key Formats Key Outputs KPM MIS R&A Help 85
- 86. HUMAN RESOURCES 5. Employee Benefits 5.1Key Process Description – Employee Mobile Phone Scheme 1. Postpaid corporate connections shall be provided to the eligible employees as per the Company‟s policy. In order to obtain a new connection, an employee shall submit a Facility Requisition Form duly authorized by the HOD to the Executive (HR). 2. The Executive (HR) shall check for eligibility of the employee as per the company policy. Per the authorization of the HOD and the company policy, the Executive (HR) shall initiate the process of acquiring a new connection. Home Process Overview Key Objectives Process Owners 3. At the time of handing over the new connection kit, the acknowledgement of the employee shall be obtained on the Requisition form. 4. Key Inputs The Executive (HR) shall accordingly update the company “Asset Tracker” which shall capture the following information: Key Key Activities Activities Flowchart – Requisition No. and date – Employee Name & Code – Type of asset – Asset Identification No. – Date of issue Key Formats Key Outputs KPM MIS 5. R&A The facility requisition form shall be sent to the Executive (HR) for filing in the employee personal file. Help 86
- 87. HUMAN RESOURCES 5. Employee Benefits 6. Themobile phone bills for corporate connections shall be received by Executive (HR). On receipt of the phone bills, the Executive (HR) shall prepare a statement with following details: – Process Owners Key Formats 8. Amount of current bill – 7. Mobile phone reimbursement limit as per the company policy – Key Objectives Phone number – Process Overview Employee name & code and level – Home Amount to be recovered from employee‟s salary The mobile phone statement shall be signed-off by the Executive (HR) as the preparer and shall be forwarded to the Manager (HR) for review along with the mobile phone bills. Manager (HR) shall review the statement against the bills and the company policy. Manager (HR) shall also verify the arithmetic accuracy of the amount to be recovered from the employee‟s salary. Key Inputs Key Key Activities Activities Flowchart The Manager (HR) shall evidence the review by way of a sign-off on the statement. Key Outputs KPM MIS R&A Help 87
- 88. HUMAN RESOURCES 5. Employee Benefits 5.2Key Process Description – Employee Laptop Scheme 1. Laptops shall be provided to selected holders so as to facilitate better execution, essential for promoting company‟s business. 2. Laptops shall be provided as per the company policy to the eligible employees. 3. In order to obtain a Laptop, an employee shall submit a Facility Requisition Form duly authorized by the HOD to the Executive (HR). 4. The Executive (HR) shall cross verify the eligibility of the employee vis-à-vis the company (laptop) policy and an approval of Manager (HR) shall be sought. Home Process Overview Key Objectives 5. Process Owners The Executive (HR) shall forward the approved form to the IT personnel who shall either issue the laptop from the stock (if available) or shall forward the requisition to the procurement department along with specs required for purchase of new laptop. For details on procurement of Laptop refer to “Fixed Asset” SOP. 6. The IT personnel shall forward the acknowledged form to the Executive (HR) who shall update the Asset Tracker with details of the laptop provided. 8. Flowchart The Facility requisition form shall be sent to the Executive (HR) for filing in the employee personal file. KPM MIS Key Key Activities Activities At the time of handing over the laptop to the employee, acknowledgement of the employee shall be obtained on the Requisition form. 7. Key Formats Key Inputs Key Outputs R&A Help 88
- 89. HUMAN RESOURCES 5. Employee Benefits 5.3Key Process Description – Employee Travel 1. Home Travel policy shall be applicable to all employees who may undertake travel in the following circumstances: – – Key Objectives 2. Process Owners Key Formats 3. Travel due to sudden recall from leave – Process Overview Visit to outstation locations Travel undertaken on instructions from the company In order to undertake travel, the employee shall complete the Travel Requisition form. The employee shall mention an estimate of advance amount required per his eligibility in the employee travel policy. In case of immediate/ urgent travel, (where due approval could not be obtained), a TRF shall be prepared by the employee on return from travel. No travel bills shall be processed in absence of unapproved TRF. Key Inputs Key Key Activities Activities Flowchart The completed Travel Requisition Form shall be submitted to the HOD for obtaining approval. Upon obtaining approval, the requisition form shall be sent to the admin personnel to initiate the process of making travel arrangements. Key Outputs KPM 4. On receipt of approved requisition form, the admin personnel shall verify the following: – Advance amount eligibility as per the Travel policy – Other travel arrangements to be made per the employee grade (mode of travel, class, hotel MIS R&A etc) Help 89
- 90. HUMAN RESOURCES 5. Employee Benefits 5. Home ProcessOverview The approved requisition form shall be forwarded to the Accounts personnel for disbursement of advance amount to the employee. 6. At the time of handing over the advance amount to the employee, employee acknowledgement shall be obtained on the form. For details on disbursement of advance amount to the employee refer to Cash & Bank - Payment of employee advance (tour advance) Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 90
- 91. HUMAN RESOURCES 5. Employee Benefits 5.4Key Process Description – Salary Advance Eligibility Home • Salary advance shall be given to the employees as per the eligibility criteria in the salary advance policy of the company. The advance shall be recovered in equated installments from the employee‟s salary. Process Overview Initiation 1. Key Inputs To obtain salary advance, employee shall fill up and complete a Advance Requisition Form in standard format. The Advance Requisition Form shall be approved at two levels: Key Objectives Initial Level approval Key Key Activities Activities Final Approval Process Owners 2. Upon initial approval of the HOD, the form shall be submitted to the Executive (HR). Manager (HR) shall review the requisition and consider the following before authorizing the disbursement of Flowchart advance: Key Formats – – 3. Outstanding advances (if any) – KPM Duration of service of the employee Leave/ Attendance history Key Outputs Manager (HR) shall review and sign off the Advance Requisition Form and forward the same to Head (HR) who shall approve the advance requisition by way of sign-off on the requisition. 4. A copy of the approved requisition shall be sent to the Payroll and Accounts team. 5. MIS The Advance requisition form shall be sent to the Executive (HR) for filing in the concerned R&A employees personal file. Help 91
- 92. HUMAN RESOURCES 5. Employee Benefits 5.5Key Process Description – Employee Relocation/ Transfer 1. The process of relocation can either be employee initiated or can be initiated by the company based on any business requirement in the other location. Home 2. If an employee is willing to shift to another location, he shall refer to the following sources to identify any vacancy at the other location: Process Overview Internal Job Postings Key Inputs Local HR at the other location Key Objectives 3. The employee shall discuss with the HR if a comparable position exists at the other location and shall initiate the process by filling up an Employee Relocation Form. In the form the employee shall in detail Key Key Activities Activities provide the reasons for relocation. Process Owners 4. In case of a vacancy or a specific business scenario, the company may consider shifting a resource from one location to another location. A suitable employee shall be identified based on the job Flowchart description of the vacant position at the other location. Key Formats 5. The HOD shall first obtain acceptance from the identified employee via e-mail/ letter. Upon obtaining acceptance of the employee, the process of relocation shall be initiated by the employee by filling up the Employee Relocation Form. Key Outputs KPM 6. The completed Relocation form shall be sent to the immediate Reporting Officer to obtain his approval to relieve the employee from the current job. MIS 7. Upon obtaining approval of the immediate Reporting Officer, the approval of the HOD of the R&A concerned department shall be obtained. Help 92
- 93. HUMAN RESOURCES 5. Employee Benefits 8. Thecompleted and approved Employee Relocation Form along with Change Master Record Request Form shall be sent to the Executive (HR) who shall update the Employee Master. Home 9. The Employee relocation form and Change Master Record Request form shall then be filed in the concerned employee‟s personal file. 10. Process Overview In all cases of employee relocations, the Executive (HR) shall intimate the Accounts department. Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 93
- 94. HUMAN RESOURCES 5. Employee Benefits 5.6Key Process Description – Group Insurance Policy 1. Group insurance policy for employees shall be obtained by the company for providing a feeling of security to the employee. 2. Search for suitable group insurance policies in the market for our particular industry. Policies should be segregated as per band of the employees. Home Process Overview Key Inputs 3. Policies shall be framed as per the regulated law and refer to statutory requirements regarding group insurance policy. 4. Polices should be monitored by Manager HR and reviewed by Head HR. 5. Seek approval from CMD for purchasing the group insurance policy for the company. Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 94
- 95. HUMAN RESOURCES 5. Employee Benefits 5.7Key Process Description- Employee Family Benefit Scheme 1. Certain schemes should be framed for the employees family benefit such as LTC, Family mediclaim insurance etc. 2. Schemes shall be framed as per statutory requirements and monitored by Manager HR. 3. Schemes shall be reviewed by Head HR and finally approved by CMD 4. Home All the schemes should be framed as per the eligibility criteria of each employee. Process Overview Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 95
- 96. Process: Employee Benefits– Employee Mobile Phone Scheme Facility Requisition Form Submit a completed Facility Requisition Form OUTPUT PROCESS INPUTS HOD Authorized Facility Requisition Form Approves the Facility Requisition form Employee Check for eligibility of the employee as per the company policy Executive (HR) 2 Initiate process of acquiring new phone connection Notes 1 For details on reimbursement refer Reimbursement section of this document. Handover the new connection kit to the employee 2 Executive (HR) to verify the eligibility of the employee with the company policy. Obtain acknowledgement of employee on the Requisition Form Update Asset Tracker 3 3 An asset tracker is maintained to identify assets issued to employees. Facility requisition form filed in employee personal file 96 Updated Asset Tracker
- 97. Process: Employee Benefits– Employee Mobile Phone Scheme INPUTS Mobile Phone Bills OUTPUT PROCESS Executive Admin On receipt of mobile phone bills, prepare a statement for that particular month 1 Forward the statement along with the bills to Manager Admin Manager Admin Notes 1 The mobile phone statement shall contain the following details: -Employee name & code and level -Phone number -Mobile phone reimbursement limit as per the company policy -Amount of current bill -Amount to be recovered from employee‟s salary Reviews the mobile phone statement against the bill and the relevant policy Evidences the review by way of a sign-off on the statement I 97 Approved mobile phone statement
- 98. Process: Employee Benefits– Employee Mobile Phone Scheme OUTPUT PROCESS INPUTS I Executive Admin Forward the bills to the Accounts Team for payment to the Service Provider Forwards the approved statement to Executive (Payroll) for recovery of excess payment Payroll Processing Notes 98
- 99. Process: Employee Benefits– Employee Laptop Scheme INPUTS Authorized Facility Requisition Form OUTPUT PROCESS Executive (HR) 2 HOD Check employee eligibility against policy and obtain approval from Manager (HR) Approved Facility Requisition Form IT personnel Submit a completed Facility Requisition Form approved by HOD Employee Notes 1 Initiate process of acquiring new Laptop or, if available, issue from the stock Handover the Laptop to the employee and obtain acknowledgement of employee on the Requisition Form Acknowledged Facility Requisition Form 1 Refer Fixed Assets SOP for procurement of assets Executive (HR) 2 The Facility requisition form shall filed in the employee personal file. Update Asset Tracker 99 Updated Asset Tracker
- 100. Process: Employee Benefits– Employee Travel INPUTS OUTPUT PROCESS Approved Travel Requisition Form Admin personnel/ HR HOD Initiate process of making travel arrangements based on the grade of the employee 1 Approved Facility Requisition Form Accounts Personnel Submit a Travel Requisition Form approved by HOD Initiate process of disbursement of advance to the employee based on the approved requisition Employee Notes At the time of handing over the advance amount to the employee, obtain employee acknowledgement on the form 1 For details refer company policy. 100 Cash & Bank - Payment of employee advance (tour advance)
- 101. Process: Employee Benefits– Salary Advance INPUTS OUTPUT PROCESS 1 Advance Requisition Form Fill in Advance Requisition Form approved by HOD, Manager (HR) and Head (HR) HOD, Manager (HR), Head (HR) Approve the Advance Requisition Form Forward the approved form to Payroll and Accounts Team Employee Executive (HR) Notes 1 Manager (HR) shall review the requisition and consider the following before authorizing the disbursement of advance: - Duration of service of the employee - Outstanding advances (if any) - Leave/ Attendance history File the approved requisition in the employee personal file 101 Approved Advance Requisition Form
- 102. Process: Employee Benefits– Employee Relocation/ Transfer INPUTS PROCESS OUTPUT Approved Employee Relocation Form Employee Relocation Form Immediate Reporting Officer and HOD Change Master Record Request Form Employee Relocation Form to be approved by Immediate Reporting Officer and HOD Executive (HR) Update Employee Master File Employee Relocation Form and Change Master Record Request Form Notes Intimate Accounts department 102 Master Management
- 103. Process: Employee Benefits– Group Insurance Policy PROCESS INPUTS Group Insurance Policy 1 OUTPUT Executive HR Refer to statutory requirements regarding group insurance policy Search for suitable group insurance policies in the market for our particular industry Forward the policy to Head HR for review Notes 1 Group insurance policy for employees shall be obtained by the company for providing a feeling of security to the employee Policies should be obtained and segregated as per Band & elegibility of the employees Seek approval from CMD for purchasing the group insurance policy for the company 103 Approved Group Insurance Policy
- 104. Process: Employee Benefits– Employee Family Benefit Scheme INPUTS PROCESS OUTPUT Employee Family Benefit policy Executive HR Refer to statutory requirements regarding employee family benefits Frame the family benefits as per statutory requirements Head HR to review the family benefits scheme and suggest CMD regarding the adoption of the policy Notes CMD shall review and approve the policy Every Scheme should be framed and segregated as per Band & elegibility of the employees 104 Approved Family Benefit Scheme
- 105. HUMAN RESOURCES 5. Employee Benefits KeyOutput: − Approved Facility Requisition Form − Asset Tracker − Approved Travel Requisition Form − Approved Leave Application − Salary Advance Tracker − Approved Advance requisition form − Approved employee relocation form − Approved Employee Family Benefit scheme − Approved Employee Group Insurance Policy Home Process Overview Key Inputs Key Objectives Process Owners Key Formats Key Activities Flowchart Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 105
- 106. HUMAN RESOURCES 5. Employee Benefit Responsibility& Authority Matrix : Home Responsibility Authority A/R S.No. Activity(A)/ Report (R) Director HOD Head HR Manager (HR) Executive (HR) User Process Overview Key Inputs 1 Key Objectives Facility Requisition Form A 2 Updating Asset Tracker V E R V E Key Activities 3 Key Formats A V 4 Employee Relocation Form A V 5 Process Owners Advance Requisition Form V V Employee Group Insurance A V E 6 Employee Family Benefit Scheme A V E E E Flowchart Key Outputs KPM MIS RR &A & A Help 106
- 107. HUMAN RESOURCES 6. Training &PMDP Key Inputs: 6.1 Employee Training Home 6.2 Self Performance Appraisal form 6.3 Awards & Rewards Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs` Key Outputs KPM MIS R&A Help 107
- 108. HUMAN RESOURCES 6. Training &PMDP- Training Process 6.1 Key Process Description – Employee Training 1. At the beginning of each quarter a training calendar shall be prepared by the Manager (HR) considering both mandatory requirements and training requests as enumerated below: Home • • 2. Process Owners Key Formats Employee surveys • Key Objectives Training proposals and requests submitted by the departmental heads and employees • Process Overview Performance appraisal process Organizational studies The training calendar shall specify the training programs scheduled in the quarter for each department. On preparation of training calendar approval of the Head (HR) shall be sought. Approved Training calendar shall be circulated among the employees by Manager (HR). 3. Key Inputs Training man-hours shall be specified for each level in the company and tracked through Training Tracker. Key Key Activities Activities Flowchart In-House Training 1. A training reminder shall be sent by the Executive (HR) to employees 15 days before the scheduled training day. Key Outputs` Key Outputs KPM 2. In order to attend a training, the employee shall submit a completed Training nomination form to the immediate supervisor for approval. On obtaining approval of the supervisor, the employee shall be entitled to attend the training session. The supervisor may also nominate employees for training. MIS 3. R&A All the approved Training request form shall be sent to the Executive (HR) who shall collate the data and prepare a final sheet with list of attendees for the particular training program. Help 108
- 109. HUMAN RESOURCES 6. Training &PMDP- Training Process 5. Home On the day of training, the Executive (HR) shall take the attendance of the personnel attending the training. 6. The Executive (HR) shall maintain a Training tracker to capture details of the employees who attended a particular training to enable identification of training man-hours of an employee against that specified in the policy for relevant level. Process Overview External Training 1. Key Input1s Key Inputs The employees may nominate themselves to attend an external training by filling up an Training nomination form. The approval of the HOD shall be sought on the Training nomination form. The Key Objectives supervisor may also nominate employees for training. Refer to Procurement of Services process in Procurement SOP for details on selection of External Training Agency. 2. Process Owners On obtaining HOD‟s approval, employee shall forward the training nomination form to the Executive (HR) for updation of Training tracker. Training Feedback Key Formats Key Key Activities Activities 1. Flowchart Written feedback shall be obtained from all participants regarding the usefulness of the program so as to decide on future nominations and/or organization of the program. 2. KPM If the HOD thinks it fit, then participants may be encouraged to share their learning with their Key Outputs` Key Outputs departmental colleagues on their return from a training program. 3. HR team shall submit an annual report to the management on the training activities carried out during the year and the list of participants and mention those trainees who contributed the most to the success MIS of a program. R&A Help 109
- 110. HUMAN RESOURCES 6. Training &PMDP- Training Process Invoice Certification for Training Agency 1. Home On receipt of the invoice from the Training agency in case of an external training or in case an external trainer was invited to take training sessions for the employees, Manager (HR) shall forward the invoice to the Head (HR) along with the following supporting documents for approval: • • Process Overview 2. Key Objectives 3. Agreement/ Service Order with agency and Training tracker Key Input1s Key Inputs The Head (HR) shall authorize the invoice (by way of a sign-off on the invoice) on review of the aforementioned documents. Approved invoice along with the aforementioned supporting documents shall be sent to the Accounts team for Accounting purpose. Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs` Key Outputs KPM MIS R&A Help 110
- 111. HUMAN RESOURCES 6. Training &PMDP- PMDP Process 6.2 Key Process Description – Appraisal Process 1. At the end of every year employee being given a blank self appraisal form and also Appraisement form given to Appraiser. 2. Employee and Appraiser fill the form and submit the same to the HR team . 3. After submission of both forms Preliminary appraisal meeting will be conducted . Persons involved in this meeting are- Employee, Appraiser, HOD and Head HR 4. Summary of Preliminary meeting submitted to HR team which leads to final appraisement procedure. 5. Manager HR will prepares a summary sheet which contains information like summary of preliminary meeting, Key result area described in Job description and also summary of previous year appraisement. 6. Final summary sheet of appraisement reviewed by Head HR and forward it to CMD/Director. 7. Final review will be done at Corporate level CMD/Director 8. On the basis of performance appraisement rating being given each employee. On the basis of rating given performance bonus will be decided . 9. If the rating is very low which indicates any special training is required for any employee then as per that training will be scheduled. Home Process Overview Key Input1s Key Inputs Key Objectives Process Owners Key Formats KPM MIS Key Key Activities Activities Flowchart Key Outputs` Key Outputs R&A Help 111
- 112. HUMAN RESOURCES 6. Training &PMDP- PMDP Process 6.3 Key Process Description – Awards & Rewards - Best Employee Award 1. The objective is to provide a motivational tool to employees who perform exceptionally. The recognition can serve as a source of pride and encourage them to greater heights of achievement. Home 2. Awards shall be given as per the company policy. 3. The nominations for the Best employee shall be given by the HODs in the Employee Nomination Form. For each nominated employee an individual form shall be sent and the same shall be signed off by the Process Overview Key Input1s Key Inputs HOD. 4. The employees shall be nominated based on the criteria specified in the company policy and may include factors such as Key Objectives • • Key Formats 5. Positive attitude towards work • Success in task accomplishments. Key Key Activities Activities Harmonious interpersonal relations with colleagues • Process Owners Regularity/ Punctuality Flowchart The forms shall be forwarded to Executive (HR) who shall collate the forms and send them to the Manager (HR). 6. KPM Manager (HR) and Head (HR) shall discuss each case and in case of any queries, clarifications from the Key Outputs` Key Outputs HOD shall be obtained. 7. Director (Corporate affairs) shall make the final selection in consultation with the Head (HR), who shall give approval on the Employee award form. One employee shall be selected as “The Best Employee of MIS the Company” R&A Help 112
- 113. Process: Employee Training INPUTS TrainingNomination Form PROCESS OUTPUT Supervisor To attend training, employee to submit TNF Supervisor to approve the Training Nomination Form Approved Training Nomination Form Employee Executive (HR) 1 1 2 Training Calendar Notes At the beginning of each quarter a training calendar shall be prepared by the Manager (HR) considering both mandatory requirements and training requests. On preparation of training calendar approval of the Head (HR) shall be sought. Training tracker to capture details of the employees who attended a particular training to enable identification of training man-hours of an employee against that specified in the policy for relevant level Collate all training requests forms and prepare list of attendees List of attendees Take attendance on training day (as per training calendar) Update training tracker with details of program and attendees 113 2 Updated Training Tracker
- 114. Process: Performance Appraisal INPUTS Selfassessment form Employee Appraisement form PROCESS OUTPUT Submit forms to HR team Preliminary Appraisal interview Summary of Preliminary Appraisal interview submitted to HR team Appraiser Final review of appraisement done at corporate Head HR forward final summary sheet to CMD/Director Notes As per the rating given further decision is being taken regarding Year end documented Final decision from CMD/Director training to be provided and also as per the rating given decision regarding year end Bonus payment is decided. 114 rating for the employee
- 115. Process: Awards &Rewards – Best Employee Award INPUTS OUTPUT PROCESS Employee Nomination Form Nominate the best employee by filling and signing the Employee Nomination Form HOD Executive (HR) Collate the forms and forward them to Manager (HR) Manager (HR) and Head (HR) Discuss each case and in case of any queries, obtain clarifications from the HOD Approved Employee Award Form Notes CMD/Director 1 One employee shall be selected as “The Best Employee of the Company” 1 Select the candidate from short listed candidates and give approval on Employee Award Form 115 Identified Best Employee
- 116. HUMAN RESOURCES 6. Employee Training& PMDP Key Output: – Training feedback form − Employee Performance Bonus Amount − Approved Employee Award Form − Approved Employee Nomination Form Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 116
- 117. HUMAN RESOURCES 6. Employee Training& PMDP Responsibility & Authority Matrix : Home Responsibility Authority A/R S.No. Activity(A)/ Report (R) Director HOD Head HR Executive (HR) User Process Overview Key Inputs 1 Key Objectives Training Calendar A 2 Employee Appraisal A E V V V E Key Activities 3 Best Employee Award A V E Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 117
- 118. HUMAN RESOURCES 7. Employee Relationship KeyInput: − Retention Initiatives Schemes − Diversity management − Grievance Handling Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 118
- 119. HUMAN RESOURCES 7. Employee Relationship 7.1Key Process Description – Retention Initiatives Scheme Home 1. Employee retention Initiatives Scheme should be framed by Manger HR in order to increase retention ratio in the company. As per the fluctuation in the market and recent changes in the industry schemes should be updated. 2. These Schemes should be reviewed by Head HR and finally approved by CMD. Process Overview Key Objectives 7.2 Key Process Description – Diversity Management 1. This study is to done by Manger HR and the final decision of diversity is to be taken by the Head HR in consultation with each HOD. 3. Diversity decision taken by the Head HR should be forwarded to CMD/Director with facts for approval. Key Key Activities Activities In order to develop effective diversity management it is required assess and identify the key skill area and interesting area of work for employee. 2. Key Inputs Process Owners Flowchart Key Formats Key Outputs KPM 7.3 Key Process Description – Grievance Handling 1. Any kind of grievances of employees shall be addressed through proper channels. MIS R&A 2. 3. Help In case of low level grievance then it should be first informed to HOD and then to HR for solution. In case of grievances that cannot be informed to HOD, then the same should be scope of open line scheme with Head HR in which the grievance shall be addressed directly by Head HR and Director if needed. 119
- 120. HUMAN RESOURCES 7. Employee Relationship KeyOutputs: − Approved employee Retention Initiative Scheme − Approved Decision for Diversity. − Solution for Grievance Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Output Outputs KPM MIS R&A Help 120
- 121. HUMAN RESOURCES 7. Employee Relationship Responsibility& Authority Matrix : Home Responsibility Authority A/R S.No. Activity(A)/ Report (R) Director HOD Head HR Manager (HR) User Process Overview Key Inputs 1 Key Objectives Retention Initiative scheme A V 2 Diversity Management A V V V E E Key Activities 3 Grievance Handling A E Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 121
- 122. HUMAN RESOURCES 8. Compensation Key Activities: TheKey Activities in the Compensation are as below: Home 8.1 Payroll 8.1.1 Master Management 8.1.2 Attendance capturing & Leave records 8,1,3 Payroll Processing 8.1.4 Statutory Compliance 8,1,5 Separation Process 8.1.6 PSA Labour Payment Process Overview Key Inputs Key Objectives Process Owners Key Formats Key Key Activities Activities Flowchart 8.2 Reimbursement Key Outputs KPM MIS R&A Help 122
- 123. HUMAN RESOURCES 8.1.1.Master Management Key Input: − ProcessOverview − Appointment Letter − Home Create/ Change Master Record Request Form Payroll Master record Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 123
- 124. HUMAN RESOURCES 8.1.1 Master Management– Payroll Master 8.1.1 Key Activities: Guiding Principles Home • An entry shall be present for each employee in the organization in the payroll master • Only Executive (Payroll) shall have read and write access to Employee Master. Manager (Payroll) on a case to case basis may authorize only read access to other employees Process Overview Key Inputs • Key Objectives Payroll Master record cannot be created without there being a corresponding entry in the Employee Master • Employee and Payroll records shall share a common Employee Code. The payroll master shall contain details regarding the Salary advance deduction to be made from the salary of the employee on a monthly basis. System shall automatically take into account the deduction from the monthly salary of the said employee in case of the employee availing the advance. Process Owners 8.1.1.a Key Process description – Payroll Master - Create Payroll Master Record 1. Executive (Payroll) shall receive the Employee joining report along with Appointment letter with signature of the new joinee, joinee‟s HOD and the authorized signatory as per DOA. Flowchart A new employee record shall be created in the payroll master whenever a new employee is recruited. 2. Key Formats Key Key Activities Activities Key Outputs KPM 3. MIS Executive (Payroll) shall verify that an Employee payroll record does not already exist in the system for that specific employee. If an Employee Payroll record already exists then Manager (Payroll) shall be notified. Manager (Payroll) shall then resolve the issue. 4. Help Executive (Payroll) shall obtain the required information for data entry from the Appointment Letter and the Employee Code / name as mentioned on the EJR. 5. On entry of the salary details of the employee as per the Appointment Letter, the system shall be configured to compute the applicable amounts towards statutory deductions viz. PF, PT, & ESI. R&A 124
- 125. HUMAN RESOURCES 8.1.1 Master Management– Payroll Master Key Activities: 6. Any additions to the Payroll Master shall be approved by the Manager (Payroll). 7. On creation of a record by Executive (Payroll), the print of the same shall be taken which shall be reviewed and approved by Manager (Payroll). The month end salary processing shall not be done unless the same has been validated by the Manager (Payroll). 7. Manager (Payroll) shall review the additions to the master against the base documents such as EJR and Appointment Letter. 8. The joinee‟s HoD, Manager (Payroll) and Accounts Team shall be informed (via email) about the new record creation. The Payroll Master record details shall also be attached in the email. 9. In an ERP environment, on creation of a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). Manager (Payroll) shall review the additions to the master against the base documents such as EJR and Appointment Letter. Home Process Overview Key Objectives Process Owners Key Inputs Key Formats Key Key Activities Activities Flowchart Key Outputs KPM Guiding Principles • MIS 8.1.1.b Key Process description – Payroll Master – Change Payroll Master Record 1. Help Payroll Master cannot be changed unless it is authorized by Manager (Payroll). R&A Revisions to the Payroll Master shall be made in case the salary has been revised for an employee. The Salary Revision letter shall be sent to the Executive (Payroll) duly authorized by the CMD/Director. 125
- 126. HUMAN RESOURCES 8.1.1 Master Management– Tax Master Key Activities: 2. Home On receipt of the Salary Revision Letter, Executive (Payroll) shall check the following: – Authorization of the Salary Revision letter, along with the supporting salary break-up. – Employee code matches with the employee name in the Master. If the Employee Code does not match the employee name, then the Head HR is notified who shall then resolve the issue. Process Overview Key Inputs 3. Key Objectives Prior to updation, Executive (Payroll) shall take a back-up copy of the previous Payroll Master record, and also take a printout of the same and shall send it to the Executive (HR) for inserting it in the relevant personnel file. 4. Executive (Payroll) shall obtain the required information for data updation from the Salary revision letter and subsequently update the Payroll Master record. 5. The Manager (Payroll) and Accounts Team shall be informed (via e-mail) about the record updation. The updated, as well as the previous Payroll Master record will be attached in the e-mail. 6. Key Key Activities Activities Any modifications to the payroll master shall be approved by the Manager (Payroll). On modification Process Owners Flowchart Key Formats of a record by Executive, the print of the same shall be forwarded to Manager (Payroll) for approval. Only on approval of the Manager (Payroll), the payroll for the month shall be processed. KPM 7. Manager (Payroll) shall review the modification to the master against the base documents such as authorized Salary Revision Letter. 8. In an ERP environment, on modification of a record by Executive, the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll) ,the particular change shall get MIS Help Key Outputs R&A activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). Manager (Payroll) shall review the modification to the master against the base documents such as authorized Salary Revision Letter. 126
- 127. HUMAN RESOURCES 8.1.1 Master Management– Tax Master Key Activities: 8.1.1.c Key Process description – Tax Master - Create Tax Master Record Home 1. Process Overview 2. Key Objectives Tax Master to be configured to perform TDS calculations on basis of investment declaration provided by the employee. Executive (Payroll) along with Manager (Taxation) and IT team to perform a User Acceptance testing to check if the system is giving desired results. The IT personnel shall then get a User Acceptance testing form filled up from GM (F&A). Key Inputs The System Requirement Specification (SRS) shall be prepared by the Manager (Taxation) incorporating the slabs and rates (for PF, ESI and PT) based on the latest enactments and forwarded to GM (Finance). 3. The SRS shall be forwarded to the IT department for setting up logic in the payroll application. 4. IT Dept shall certify the functioning of the logic every month and take a confirmation from the Manager (Taxation) in User Acceptance Testing Form and handover the same to the payroll department before initiating payroll processing 5. Executive (Payroll) shall receive the Employee joining report along with Appointment letter with signature of the new joinee, joinee‟s HOD and Head (HR). Executive (Payroll) shall utilize the Investment Declaration form if already submitted. 6. Executive (Payroll) shall verify that an Employee Tax record does not already exist in the system for that specific employee. If an Employee Tax record already exists then Manager (Payroll) shall be notified. Manager (Payroll) shall then resolve the issue. Key Key Activities Activities Process Owners Key Formats KPM MIS 7. Help Executive (Payroll) shall obtain the required information for data entry from the Appointment Letter and the Employee Code / name as mentioned on the EJR and the Investment Declaration Form from the concerned employee. Flowchart Key Outputs R&A 127
- 128. HUMAN RESOURCES 8.1.1 Master Management– Tax Master Key Activities: 8. The relevant fields for other statutory deductions such as PF, ESI and Profession Tax shall be updated based on the compensation structure provided in the Appointment Letter and the PF and ESI form filled in by the employee. 9. The PF and ESI forms shall be sent to the respective authorities for registration of the particular employee with the authorities. The employee shall be allotted a unique number by the authorities that shall be updated in the Tax master. Home Process Overview Key Objectives 10. Process Owners Key Formats 11. Any additions to the Tax Master shall be approved by the Manager (Payroll). On creation of a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). In case the system does not support online approval, a print of the created record shall be approved by Manager (Payroll) post review. Key Inputs Key Key Activities Activities Flowchart Manager (Payroll) shall review the additions to the master against the base documents such as PF, ESI forms, etc. Key Outputs KPM 12. The joinee‟s HoD, Manager (Payroll) and Accounts Team shall be informed (via email) about the new record creation. The Tax Master record details shall also be attached in the email. 13. If any dispute is there regarding tax matter then refer finance team. MIS R&A 8.1.1.d Key Process description – Tax Master – Change Tax Master Record 1. Executive (Payroll) shall check for authorization of the Investment Declaration Form. 2. Executive (Payroll) shall check if the employee code exists in the Tax master and if the employee code matches with the employee name. ` Help 128
- 129. HUMAN RESOURCES 8.1.1 Master Management– Tax Master Key Activities: 3. Prior to updation, Executive (Payroll) shall take a back-up copy of the previous Tax Master record and also take a printout of the same and shall send it to the Executive (Payroll) for inserting it in the relevant personnel file. 4. Executive (Payroll) shall obtain the required information for data updation from the Investment Declaration Form and subsequently update the Tax Master record. The SRS for PF, PT and ESI shall be reviewed/ prepared in case of any revision in the rates/ slabs. Home Process Overview Key Objectives 5. Process Owners Key Formats 6. Any updations to the Tax Master shall be approved by the Manager (Payroll). On updation of a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). In case the system does not support online approval, a print of the modified record shall be approved by Manager (Payroll) post review. Key Inputs Key Key Activities Activities Flowchart Manager (Payroll) shall review the modification to the master against the base documents such as authorized Investment Declaration form. Key Outputs KPM 7. The Manager (Payroll), Manager (Taxation) and Accounts Team shall be informed (via e-mail) about the record updation. The updated, as well as the previous Tax Master record will be attached in the email. MIS Guiding Principles – Payroll / Tax Master – Change Payroll/ Tax Master Record – Till Settlement • Help Payroll/ Tax Master cannot be Change unless it is authorized by Competent authority. • Change of employee master and payroll master should be carried out simultaneously by the respective process owners R&A 129
- 130. HUMAN RESOURCES 8.1.1 Master Management– Payroll/ Tax Master Key Activities: Home 8.1.1.e Key Process description – Payroll / Tax Master – Change Payroll/ Tax Master Record – Till Settlement 1. Payroll/ Tax Master shall be Changed in case the employee‟s intent to separate from the company has been accepted by the Director. 2. The HOD shall send a request to the Executive (Payroll) of change Master till settlement in a Change Master Record Request Form on authorizing the same by way of a sign-off with well defined cause. 3. A final approval of the Competent authority shall be obtained to go ahead with Changing the record in the Master. 4. On receipt of approved Change Master Record Request form, the Executive (Payroll) shall verify the following: Process Overview Key Objectives Process Owners Key Inputs – KPM 5. MIS 7. Employee Code and the Employee name match in the Master. – Master record matches with the corresponding entries in the Change Master Record Request Form. Flowchart Authorization by the HOD and Manager (Payroll) on the form – Key Formats Key Key Activities Activities If there are any mismatches then Executive (Payroll) shall notify the requisitioner accordingly and return the Change Master Record Request Form. Key Outputs R&A Executive (Payroll) shall Change the Payroll/ Tax Master record for the employee designated in the Change Master Record Request Form (as mentioned in “Action Step” field of the form). Help 130
- 131. HUMAN RESOURCES 8.1.1 Master Management– Payroll/ Tax Master Key Activities: 8.1.1.e Key Process description – Payroll Master – Change Payroll/ Tax Master Record Home 8. Process Overview Key Objectives 9. 10. Process Owners Key Formats Any Changing to the payroll/ tax master shall be approved by the Manager (Payroll). On Changing a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get Changed. In case the system does not support online approval, a print of the Changed record shall be approved by Manager (Payroll) post review. Manager (Payroll) shall review the modification to the master against the base documents such as authorized Change Master Record Request Form and other documentary proofs (if necessary). Executive (Payroll) shall send an email / letter to Manager (Payroll), and Accounts Team and the HoD of the concerned employee, confirming the Changing made. A scanned image of the signed Change record request form shall also be attached with the email. 11. Key Key Activities Activities Flowchart The Change Master record request form shall be sent to the Executive (payroll) for filing it in the concerned employee‟s personal file. 12. Key Inputs On a monthly basis, Executive (Payroll) shall perform a reconciliation between the Payroll master and the Employee master to identify any personnel added to Employee master not reflecting in Payroll Master or vice versa. The reconciliation statement shall be approved by Manager (Payroll). The same shall be forwarded to CFO. Key Outputs KPM MIS R&A Help 131
- 132. HUMAN RESOURCES 8.1.1 Master Management– Payroll/ Tax Master Key Activities: System Interface Control Home 1. Process Overview 2. Key Objectives Any additions/ modifications/ Changing to the Payroll Master shall be approved by the Manager (Payroll). On creation/ modification of a record by Executive, the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). Tax Master to be configured to perform TDS calculations and other statutory deduction on basis of investment declaration provided by employee and rates and slabs provided by Manager (Taxation). A User Acceptance testing be performed to verify if system is giving desired results. Key Formats 3. No transaction can be processed for an employee (including payroll processing) as long as the Payroll/ Tax Master Record is Changed for that employee. Key Key Activities Activities Access to Employee Master and Payroll Master shall be restricted to two independent individuals. 4. Process Owners Key Inputs Flowchart Key Outputs KPM MIS R&A Help 132
- 133. Process: Master Management– Payroll Master – Create Payroll Master Record INPUTS Employee Joining Report OUTPUT PROCESS Executive (Payroll) 1 Appointment Letter Does Employee payroll record already exists in the system? Yes Notes Notify Manager (Payroll) 1 Payroll Master record cannot be created without there being a corresponding entry in the Employee Master. Manager (Payroll) Resolve the issue 133 No A
- 134. Process: Master Management– Payroll Master – Create Payroll Master Record PROCESS INPUTS 1 2 3 Notes On entry of the salary details of the employee, the system shall be configured to compute the applicable amounts towards statutory deductions viz. PF, PT, & ESI. Any additions to the Payroll Master shall be approved by the Manager (Payroll) who shall review the additions to the master against the base documents such as EJR and Appointment Letter. In an ERP environment, on creation of a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). Manager (Payroll) shall review the additions to the master against the base documents such as EJR and Appointment Letter. A OUTPUT Extract the relevant employee record from the employee master Enter details in the Payroll Master per the Appointment Letter New record created in payroll Master Manager (Payroll) Review the additions to the Payroll Master and sign off the print 1 New record created in payroll Master 2 3 Print of the new record created Approved & Updated Payroll Master Email sent to joinee‟s HoD, Manager (Payroll) and Accounts Team informing about the new record creation in Payroll master 134
- 135. Process: Master Management– Payroll Master – Change Payroll Master Record 2 Authorized Salary Revision Letter Executive (Payroll) Authorized by CMD/ Director 1 Salary Revision Letter 1 OUTPUT PROCESS INPUTS Notes Revisions to the Payroll Master shall be made in case the salary has be been revised for an employee. Mismatch between SRL vis-à-vis Employee Master record? Yes `Notify Head HR to resolve the issue 2 On receipt of the Salary Revision Letter, Executive (Payroll) shall check the following: - Authorization of the Salary Revision letter, along with the supporting salary break-up. - Employee code matches with the employee name in the Master 135 No K
- 136. Process: Master Management– Payroll Master – Change Payroll Master Record OUTPUT PROCESS INPUTS K Take Back-up copy of the previous Payroll Master record and send it to the Executive (Payroll) for inserting it in the relevant personnel file. Notes 1 In an ERP environment, on modification of a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll) ,the particular change shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). Manager (Payroll) shall review the modification to the master against the base documents such as authorized Salary Revision Letter. Information for data updation obtained from the Salary Revision Letter Updated Payroll Master record Payroll Master record updated Print of the modified record Manager (Payroll) 1 Review and approve any modifications to the Payroll Master by signing off the print 136 Approved & Updated Payroll Master Email sent to Manager (Payroll) and Accounts Team informing about the record updation
- 137. Process: Master Management– Payroll Master – Create Tax Master Record Employee Joining Report OUTPUT PROCESS INPUTS Executive (Payroll) Appointment Letter Investment Declaration Form Notes Does Employee Tax record already exists in the system? Yes Notify Manager (Payroll) Manager (Payroll) Resolve the issue 137 No J
- 138. Process: Master Management– Payroll Master – Create Tax Master Record 1 Notes Any additions to the Tax Master shall be approved by the Manager (Payroll) who shall review the additions to the master against the base documents such as Investment Declaration Form. OUTPUT PROCESS INPUTS J Extract the relevant employee record from the employee master Enter details in the Tax Master per the Investment Declaration form, EJR and Appointment Letter Any additions to the Tax Master 2 shall be approved by the Manager (Payroll). On creation of a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). In case the system does not support online approval, a print of the created record shall be approved by Manager (Payroll) post review. New record created in Tax Master New record created in Tax Master Manager (Payroll) 1 2 Review and approve any additions to the Tax Master by signing off the print Approved & Updated Tax Master Email sent to joinee‟s HoD, Manager (Payroll) and Accounts Team informing about the new record creation in Tax master 138
- 139. Process: Master Management– Payroll Master – Change Tax Master Record Authorized Investment Declaration Form OUTPUT PROCESS INPUTS Executive (Payroll) Manager (Payroll) Verify employee details with Tax master Notes 1 Any updations to the Tax Master shall be approved by the Manager (Payroll). On updation of a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Manager (Payroll), the particular record shall get activated and payroll processed. The system shall not pick data for month end salary processing unless the same has been validated by the Manager (Payroll). In case the system does not support online approval, a print of the modified record shall be approved by Manager (Payroll) post review. Manager (Payroll) shall review the modification to the master against the base documents such as authorized Investment Declaration form. 1 Review and approve any modifications to the Tax Master Take Back-up copy of the previous Tax Master record and send it to the Executive (Payroll) for inserting it in the relevant personnel file Approved Tax Master record Email sent to Manager (Payroll), Manager (Taxation) and Accounts Team informing about the record updation Information for data updation obtained from the Investment Declaration Form Updated Tax Master record 139
- 140. Process: Master Management– Change of Master still settlement – Change Payroll/ Tax Master Record Signed change Master Record Request Form Competent authority Competent authority to approve cahnge Master Record Request Form Request to Change/stop the Payroll Record with well defined cause 1 1 2 On receipt of approved Change Master Record Request form, the Executive (Payroll) shall verify the following: Authorization by the HOD and Competent authority on the form Employee Code and the Employee name match in the Master. Master record matches with the corresponding entries in the Change Master Record Request Form. Approved Change Master Record Request Form Verify change Master Record Request Form vis a vis Payroll/ tax master record Executive (Payroll) 2 HoD of the employee Notes Payroll Master cannot be Changed unless it is authorized by Competent authority. OUTPUT PROCESS INPUTS Any mismatches between BMRF vis-a-vis Payroll/ tax master record? No Yes Notify the requisitioner and return the change Master Record Request Form 140 L
- 141. Process: Master Management– Payroll Master – Change Payroll/ Tax Master Record PROCESS INPUTS OUTPUT L 1 Notes Any Change till settlement to the payroll/ tax master shall be approved by the Competent authority. On change a record by Executive (Payroll), the same shall fall in Manager (Payroll) approval queue. Only on approval of the Competent authority, the particular record shall get change. In case the system does not support online approval, a print of the Changeed record shall be approved by Manager (Payroll) post review. Manager (Payroll) shall review the modification to the master against the base documents such as authorized Change Master Record Request Form and other documentary proofs (if necessary). On a monthly basis, Executive (Payroll) shall perform a reconciliation between the Payroll master and the Employee master to identify any personnel added to Employee master not reflecting in Payroll Master or vice versa. The reconciliation statement shall be approved by Manager (Payroll). The same shall be forwarded to CFO. change Payroll/ tax master for employee based on CMRF Payroll/ Tax master Changed for employee based on BMRF Competent authority 1 Review and approve modification to the Payroll/ tax master Approved & Updated Payroll/ Tax master Email/ letter sent to Manager (Payroll), and Accounts Team and the HoD of the concerned employee, confirming the Changing made BMRF shall be sent to the Executive (Payroll) for filing 141
- 142. HUMAN RESOURCES 8.1.1 Master Management KeyOutput: − Entry in Payroll/ Tax Master − Updated Payroll/ Tax Master − Change Payroll / Tax Master − Confirmation e-mail sent Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 142
- 143. HUMAN RESOURCES 8.1.1 Master Management Responsibility& Authority Matrix : Home Responsibility S.No. 1 Process Overview 2 A/R Activity (A) / Report (R) Authority Executive (Payroll) Creation of new master record in Payroll/Tax Master A Modification of payroll/ Tax records A Manager (Payroll) Competent Authority E V V Key Inputs E V V Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 143
- 144. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Input: − Attendance and leave records − Leave application Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 144
- 145. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 8.1.2.a Key Process description – Attendance Capturing and Leave Records - Attendance Capturing Home Attendance capturing through manual Attendance Registers 1. On a daily basis, the attendance of employee shall be captured in the manual register maintained at the security. Process Overview 2. All permanent employees, on reporting at office, shall sign-off in the attendance register against their Key Inputs respective names. After 15 min of office start time, the attendance register shall be removed from the security by the Executive (Payroll) and shall be replaced by a Late comer register. Key Objectives 3. Any employee coming late shall mention the reason for the same in the remarks column of the register. The Latecomer register shall also be removed after 45 min. Process Owners 4. Key Key Activities Activities An employee‟s attendance record may need to be updated for any of the following reasons: Employee is on outstation duty Flowchart Employee comes to place of work late due to some official work at another location Key Formats Employee does not come to place of work at all on a particular day but is involved in some official work at another location Key Outputs KPM 5. In all such cases, the employee needs to send an e-mail/SMS to the department head stating the reason for the same to obtain approval. On obtaining department head‟s approval, the mail shall be forwarded to the Executive (Payroll) who shall update the same in the register, else same shall be considered as Loss Of Pay (LOP). MIS 6. R&A The attendance details of the employees shall be confirmed with the HOD prior to taking attendance of such employees as “absent”. Help 7. The leave mentioned in the attendance report should be updated in the leave register in case the HOD do not revert (within 3 calendar days) the cases of leaves to be marked as present. 145
- 146. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 8.1.2.a Key Process description – Attendance Capturing and Leave Records - Attendance Capturing Home 8. The attendance data as in the manual register (regular & Latecomer register) shall be transferred in an excel spread sheet at the end of each day by the Executive (Payroll). 9. Process Overview On the payroll cut-off date, Manager (Payroll) shall randomly reconcile the manual register with the one maintained in excel sheet. 10. Key Inputs Attendance register maintained in excel spread sheet shall assist in following: To do analysis based on employee attendance Key Objectives Easy retrieval of data 11. Key Key Activities Activities At site the attendance of the employees shall be maintained by the Executive (HR) at site which shall be tracked in an excel sheet. Process Owners 12. The attendance data (excel sheet) along with the copy of the manual attendance register shall be sent Flowchart to the Executive (Payroll) on the payroll cut off date. Key Formats 8.1.2 b Attendance capturing through automated mechanism (FCM) Guiding Principles KPM • Key Outputs On a daily basis, the attendance of employee shall be captured in the Attendance System through a automated mechanism (FCM). • An employee record in the Time-Keeper system shall be created by Executive (Payroll) based on approved EJR and Appointment Letter. MIS • R&A Access rights to Attendance Records to be restricted to Executive (Payroll). In case of any modifications made to the records, system shall generate a Change report. Any additions/ Help modifications to the Attendance records to be approved by Manager (Payroll) and HOD. 146
- 147. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: • Attendance system shall be interlinked/ integrated with the Leave Register so that the attendance data gets updated in the leave register in the payroll application. Home • Different categories of leaves shall be pre-defined in the leave register and post-approval of a leave application, leave balances to get updated based on the available eligibility. Process Overview • Leave eligibilities of employees (for various categories of leaves such as Casual Leave, Earned leave and sick leave) to get initialized Key Inputs based on the employee's 'date of joining' (as available in the Employee Master) and the 'Attendance & Leave policy'. Key Objectives • Annually, the leave balances (for various categories of leaves such as Casual Leave, Earned leave and sick leave) get carried forward/lapsed as per the „Attendance & Leave Policy‟. Process Owners • Key Key Activities Activities At site, a manual attendance register shall be maintained in addition to issuing attendance cards (ID cards) to the workmen. 8.1.2.b Key Process description – Attendance Capturing and Leave Records - Attendance Capturing Key Formats Flowchart Attendance capturing through Automated mechanism (FCM) 1. Employees shall be required to record the time of arrival/departure by flashing the company identity card in front of the FCM installed at the entrance of the respective locations. Based on the automated Key Outputs KPM machine details of employees, the system automatically records attendance of employees for the day. 2. MIS Employees coming late shall mention the reason for the same in the remarks column of the Late Comer Register maintained by Security. On a periodic basis regular late comers shall be identified R&A and reasons for late coming as per the late comer register shall be discussed by the Executive (Payroll) with the employee. Help 147
- 148. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 3. An employee‟s attendance record may need to be updated for any of the following reasons: – Employee comes to place of work late due to some official work at another location – Process Overview Employee is on outstation duty – Home Employee does not come to place of work at all on a particular day but is involved in some official work at another location 4. In all such cases of unreported employees, where the employees had not swiped the attendance card or there is a delay in the same, an attendance statement (with details of absenteeism) shall be Key Objectives generated from the system by Assistant (Admin) by 25th of every month. The Attendance Statement shall give details of the department wise employees with attendance details along with time and Key Key Activities Activities should be sent to HOD for cases wherein the leaves were not applied for. Process Owners 5. The attendance details of the employees shall be confirmed with the HOD prior to taking attendance of such employees as “absent”. Key Formats Key Inputs 6. Flowchart The leave mentioned in the attendance report should be updated in the leave register in case the HOD do not revert (within 3 calendar days) the cases of leaves to be marked as present. Key Outputs KPM MIS R&A Help 148
- 149. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 8.1.2.c Key Process description – Attendance Capturing and Leave Records – Leave Records Home Manual Leave records 1. In order to avail a leave, the employee shall complete a Leave Application Form and submit the same to the approving authority for approval. 2. Based on reporting hierarchy, the leave application shall first be recommended by immediate supervisor and sanctioned by the HOD. The leave application shall be sanctioned by the approving authority by way of a sign off on the hard copy of the application. 3. Leave applications approved by the HODs shall be forwarded to the Executive (Payroll). 4. The leave records shall simultaneously be updated along with the attendance details and as per the Process Overview Key Objectives Process Owners Key Key Activities Activities approved leave application. The Leave Register shall also mention the eligible leave days for each employee as per the Leave Policy. Key Formats Key Inputs 5. Flowchart The leave records of all the permanent employees shall be maintained in a Leave Register (excel sheet) by the Executive (Payroll) in an excel spread sheet. 6. In case, the employee exceeds the approved leave duration, the same shall be considered as loss of Key Outputs pay. However, if the delay is due to health problems, the employee shall be asked to produce medical KPM certificate in which case, the sick leave status of the employee shall be updated. 7. MIS Help Leave Register shall contain details of the delegatee responsible to handle the work assigned to employee availing the leave. The same shall be captured directly from the employee master. Availability of the employee and intimation of the same should be given to the said employee immediately after the approval of the leave. The delegator shall make sure before going on leave, to R&A submit all the necessary documents and give the necessary instruction to the delegatee. 149
- 150. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 8.1.2.c Key Process description – Attendance Capturing and Leave Records – Leave Records Home 8. On monthly basis, Manager (Payroll) shall monitor leave records by reconciling the Leave Register, leave applications and the employee details in the employee master. The non-reconciling records may exist due to any of the following reasons: – Key Objectives 9. Additions to either of the database (register and master) pending for approval – Process Overview Records created erroneously in either of the database The reconciliation statement shall be approved by Manager (Payroll) on review of the reconciliation statement. 10. Key Inputs Key Key Activities Activities The approved leave details shall be forwarded to Executive (Payroll) on the payroll cut off date Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 150
- 151. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 8.1.2.d Key Process description – Attendance Capturing and Leave Records – Leave Records Home Leave records maintained in Payroll Application 1. Process Overview The leave records of all the employees shall be maintained in the Payroll Application. 2. In order to avail a leave, the employee shall complete a Leave Application Form and submit the same to the approving authority for approval. 3. Key Objectives Process Owners 4. Based on reporting hierarchy, the leave application shall first be recommended by immediate supervisor and sanctioned by the HOD. The leave application shall be sanctioned by the HOD by way of a sign off on the hard copy of the application. Key Inputs Key Key Activities Activities Approved leave applications shall be forwarded to the Executive (Payroll) who shall update the leave register by recording the details of the application. Flowchart 5. The leave records shall simultaneously be updated along with the attendance details and as per the approved leave application and the leave balance shall automatically be updated. 6. Leave Register shall be configured in a way to compute number of days with Loss of Pay in case employee‟s leave exceeds the leave entitlement for the year. 7. Leave Register shall contain details of the delegatee responsible to handle the work assigned to employee availing the leave. The same shall be captured directly from the employee master. Availability of the employee and intimation of the same should be given to the said employee immediately after the approval of the leave. The delegator shall make sure before going on leave, to submit all the necessary documents and give the necessary instruction to the delegatee. Key Formats KPM MIS Key Outputs R&A Help 151
- 152. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 8.1.2.d Key Process description – Attendance Capturing and Leave Records – Leave Records Home 8. On monthly basis, Manager (Payroll) shall monitor leave records by reconciling the Leave Register, leave applications and the employee details in the employee master. The non-reconciling records may exist due to any of the following reasons: – Key Objectives 9. Additions to either of the database (register and master) pending for approval – Process Overview Records created erroneously in either of the database Key Inputs The reconciliation statement shall be approved by Manager (Payroll) on review of the reconciliation statement. Key Key Activities Activities System Interface Control Process Owners 1. Access rights to Attendance Records to be restricted to Executive (Payroll). In case of any modifications made to the records, system shall generate a Change report. Any additions/ modifications to the Attendance records to be approved by Manager (Payroll) and HOD Key Formats 2. Attendance system shall be interlinked/ integrated with the Leave Register so that the attendance data gets updated in the leave register. KPM Flowchart 3. Key Outputs Different categories of leaves shall be pre-defined in the leave register and post-approval of a leave application, leave balances to get updated based on the available eligibility. 4. MIS Leave eligibilities of employees (for various categories of leaves such as Casual Leave, Earned leave and sick leave) to get initialized based on the employee's 'date of joining' (as available in the R&A Employee Master) and the 'Attendance & Leave policy'. Help 152
- 153. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Activities: 5. On a monthly basis, a reconciliation between the Attendance database and the employee database to be performed by Manager (Payroll) to identify any non-reconciling records. The non-reconciling Home records may exist due to any of the following reasons: – – Process Overview 6. Additions to either of the database pending for approval Records created erroneously in either of the database Key Inputs The reconciliation statement shall be approved by Manager (Payroll) on review of the 2 databases. Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 153
- 154. Process: Attendance capturingthrough manual Attendance Registers PROCESS INPUTS OUTPUT Security Attendance Register Capture attendance of employee in the manual register on a daily basis Notes 1 An employee‟s attendance record may need to be updated for any of the following reasons: Employee is on outstation duty Employee comes to place of work late due to some official work at another location Employee does not come to place of work at all on a particular day but is involved in some official work at another location In all such cases, the employee needs to send an e-mail/SMS to the department head stating the reason for the same to obtain approval. On obtaining department head‟s approval, the mail shall be forwarded to the Executive (payroll) who shall update the same in the register, else same shall be considered as LOP. Employee On reporting, sign-off in the attendance register against the respective name 1 Attendance Register updated Executive (Payroll) Remove attendance register after 15 minof office start time and replace it by a Late Comer Register Employee I Mention the reason for coming late in the remarks column of the Register 154 Attendance Register updated
- 155. Process: Attendance capturingthrough manual Attendance Registers I Notes OUTPUT PROCESS INPUTS Executive (Payroll) Remove Latecomer Register after 45 min 1 The leave mentioned in the attendance report should be updated in the leave register in case the HOD do not revert (within 3 calendar days) the cases of leaves to be marked as present. 1 1 Confirm the attendance details of the employees with the HOD prior to taking attendance of such employees as “absent” Attendance Register and Leave Register updated Transfer the attendance data as in the manual register (regular & Latecomer register) in an excel spread sheet at the end of each day Attendance data updated in an excel sheet Attendance register maintained 2 in excel spread sheet shall assist in following: To do analysis based on employee attendance Easy retrieval of data At site the attendance of the employees shall be maintained by the Executive (HR) at site which shall be tracked in an excel sheet. The attendance data (excel sheet) along with the copy of the manual attendance register shall be sent to the Executive (Payroll) on the payroll cut off date. Manager (Payroll) On the payroll cut-off date, randomly reconcile the manual register with the one maintained in excel sheet. 155 2
- 156. Process: Attendance capturingthrough Automated mechanism (FCM) INPUTS ID Card OUTPUT PROCESS Employee flashes the ID card in front of the Automated machine 1 Employee Updation of Employee attendance in system Attendance Register updated Notes Employees coming late shall 1 mention the reason for the same in the remarks column of the Late Comer Register maintained by Security. On a periodic basis regular late comers shall be identified and reasons for late coming as per the late comer register shall be discussed by the Executive (Payroll) with the employee. Assistant (Admin) Extract a report of unreported employees (without leave application) and forward the same to HODs by 25th of the month 2 Attendance Statement HOD 2 The Attendance Statement shall give details of the department wise employees with attendance details along with time and should be sent to HOD for cases wherein the leaves were not applied for. Confirmation received as employee absent or no confirmation received in 3 calendar days 156 Updated Leave register for employees
- 157. Process: Attendance Capturingand Leave Records – Manual Leave Records Leave Register Notes OUTPUT PROCESS INPUTS Employee Complete and submit Leave Application Form to the approving authority Leave Application Form 1 Based on reporting hierarchy, the leave application shall first be recommended by immediate supervisor and sanctioned by the HOD. The leave application shall be sanctioned by the authority by way of a sign off on the hard copy of the application. 2 The Leave Register shall mention the eligible leave days for each employee as per the Leave Policy. In case, the employee exceeds the approved leave duration, the same shall be considered as loss of pay. However, if the delay is due to health problems, the employee shall be asked to produce medical certificate in which case, the sick leave status of the employee shall be updated. Leave Register shall also contain details of the delegatee responsible to handle the work assigned to employee availing the leave. 1 HOD Approve the leave application and forward it to Executive (Payroll) Approved Leave Application Form Executive (Payroll) 2 Update the leave register by recording the details of the approved leave application Updated Leave Register I 157
- 158. Process: Attendance Capturingand Leave Records – Manual Leave Records INPUTS PROCESS OUTPUT I Notes Manager (Payroll) Reconcile the Leave Register, leave applications and the employee details in the employee master Reconciliation Statement Manager (Payroll) Review and approve the reconciliation statement Forward the approved leave details to Executive (Payroll) on the payroll cut off date 158 Approved Reconciliation Statement
- 159. Process: Leave recordsmaintained in Payroll Application OUTPUT PROCESS INPUTS Complete the application and submit the same to the approving authority Blank Leave Application 1 HOD Employee Notes Approve the Leave Application Approved Leave Application 1 Based on reporting hierarchy, the leave application shall first be recommended by immediate supervisor and sanctioned by the HOD. Executive (Payroll) 2 2 Leave Register shall be configured in a way to compute number of days with Loss of Pay in case employee‟s leave exceeds the leave entitlement for the year. Leave Register shall contain details of the delegatee responsible to handle the work assigned to employee availing the leave. Update Leave register with details of leave application Updated Leave Register Manager (Payroll) J On monthly basis, reconcile the Leave Register, leave applications and the employee details in the employee master 159 Reconciliation statement
- 160. Process: Leave recordsmaintained in Payroll Application PROCESS INPUTS J Notes OUTPUT Manager (Payroll) Review and approve the reconciliation statement 160 Approved Reconciliation Statement
- 161. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Key Output: − Updated Attendance Register − Updated Late Comer Register − Updated Leave Register Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 161
- 162. HUMAN RESOURCES 8.1.2 Attendance capturing& Leave records Responsibility & Authority Matrix : Home Responsibility S.N o. A/R Activity (A) / Report (R) Authority Executive (Payroll) Executive (HR) at site Manager (Payroll) E E Employee HOD V Process Overview Key Inputs 1 Process Owners A 2 Leave Application A 3 Key Objectives Maintenance of Attendance Register Reconciliation of the Leave Register, with the leave applications and the employee details in the employee master A E E V V Key Activities Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 162
- 163. HUMAN RESOURCES 8.1.3 Payroll Processing KeyInput: − Attendance and leave records − Salary revision letter − Salary advance tracker − Payroll Master − Tax Master Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 163
- 164. HUMAN RESOURCES 8.1.3 Payroll Processing KeyActivities: 8.1.3 Key Process description – Payroll Processing Home 1. At the time of processing the salary, the Executive (Payroll) shall consider the following : The leave records from 26th of previous month to 25th of current month shall be taken for crediting of salary accounts. Process Overview Amount to be recovered for advances/ loans Key Inputs Salary revisions Adjustments for any extra / short deductions / additions in the previous month(s) Key Objectives Amount of statutory deductions like PF, ESI, etc Key Key Activities Activities Taxes deducted at source Process Owners Attendance • Key Formats Flowchart In cases of new employees whose Payroll Master records have not yet been created by the 24th of the month or if the salary accounts have not been set up, such employees shall be paid for the days worked in the current month either through a crossed cheque / pay order or should credit the salary Key Outputs account for the same in the employee in the next payroll cycle. KPM Recovery of loans/ advances MIS • Executive (Payroll) shall maintain Salary Advance Tracker to track all the advances / loans given to R&A the employees. The same shall be updated based on the approved advance requisition received from the HR department. At the month end, Manager (Payroll) shall verify the salary advance tracker with Help approved requisitions and shall sign off the tracker. 164
- 165. HUMAN RESOURCES 8.1.3 Payroll Processing KeyActivities: 8.1.3 Key Process description – Payroll Processing Home • At the month end, Executive (Payroll) refer to the approved Salary Advance Tracker to identify employees who have been granted salary advance/ loan. The advances/ loans shall be recovered from the employee‟s salary on the basis of the installment amount due in the particular month. Process Overview Key Inputs Salary Revisions Key Objectives • Executive (Payroll) shall make any adjustments for revisions in salary based on the approved Salary Revision Letter. Process Owners Key Key Activities Activities Processing of Tax deduction at source • Based on the Investment declaration forms, the tax master shall be updated which shall be reviewed Flowchart by the Manager (Payroll) for accuracy and completeness. (Refer Master Management process for Key Formats further details) • Tax Master to compute the tax deductible on a monthly basis that shall be utilized at the time of payroll processing KPM • Key Outputs At the year end, a reminder shall be sent to the employees by the Executive (Payroll) for submission of Tax proofs as per the investment declaration provided at the beginning of the year. (Refer Statutory Compliance process for further details) MIS R&A Processing of Other Statutory deductions Help • Other statutory deductions being PF, ESI and Profession Tax shall be calculated automatically in the Payroll System based on the logic set up in the application. 165
- 166. HUMAN RESOURCES 8.1.3 Payroll Processing KeyActivities: 8.1.3 Key Process description – Payroll Processing Home • IT Dept shall certify the functioning of the logic every month and take a confirmation from the Manager (Taxation) and GM (Finance) in User Acceptance Testing Form and handover the same to the payroll department before initiating payroll processing. (Refer Master Management process for further Process Overview details) 2. Key Objectives Key Inputs Executive (Payroll) shall run the payroll processing for the month. The Payroll Statement for the month shall be generated. Post which, Executive (Payroll) shall conduct: Head Count Reconciliation: Executive (Payroll) shall ensure that employee list as per the Key Key Activities Activities Employee Master matches with the List of Employees to whose accounts, salary is to be Process Owners credited. Flowchart Payroll reconciliation by comparing the employee-wise salary statements for the current month Key Formats with the employee-wise salary statements for the previous month and prepare a reconciliation statement for the differences. Subsequently, the hard copy of the reconciliation along with the Payroll Statement for the month shall be forwarded to Manager (Payroll) along with base KPM documents for review and approval. 3. The Manager (Payroll) shall verify the following: Verify the reconciliation statements along with the supporting documents. Appointment letters of new joinees and resignation letter for resignees. – Help – – MIS Key Outputs Verify the manual attendance register with the one maintained in excel sheet in case manual R&A attendance registers are maintained. 166
- 167. HUMAN RESOURCES 8.1.3 Payroll Processing KeyActivities: 8.1.3 Key Process description – Payroll Processing – Home the leave register of all employee for a given month and if employees exceed their quota of leaves or if any leave taken by the employees has not been duly authorized then the employees‟ salaries – whether all the excess leaves have been deducted Process Overview from the salary – Any salary revisions have been made on basis of salary revision letter – Key Objectives Verify the deductions made on account of salary advance recovery with the advance Key Inputs approval letter – Key Key Activities Activities Verify whether statutory deductions have been captured correctly Process Owners 4. If any mismatch cannot be justified through existing documentation, then the same shall be highlighted to the Head HR whose authorization shall be required for reconciliation of the same. Key Formats 5. Flowchart Upon verification, Manager (Payroll) shall approve the same either by way of a sign-off or through email. 6. KPM Post approval, Executive (Payroll) shall prepare a Payroll Summary which provides summary of totals Key Outputs of gross salary, deductions/ contributions and net salary. The Payroll Summary shall be approved by Manager (Payroll). Payroll Summary shall be forwarded to Accounts team for accounting purposes. MIS 7. Executive (Payroll) shall also prepare a Bank statement for each employee, mentioning the bank R&A branch name, bank account number and net salary amount to be credited. The same shall be approved by Manager (Payroll). Executive (Payroll) shall prepare Bank Advice Letter (Covering letter) for crediting the bank accounts. The approved Payroll Statement, bank statement shall be sent to Help CFO and Bank Advice shall be sent to Head HR for approval. 8. CFO shall review the same and sign off the documents evidencing the review. 167
- 168. HUMAN RESOURCES 8.1 3 PayrollProcessing Key Activities: 8.1.3 Key Process description – Payroll Processing Home 9. Account credit instructions shall be sent to bank in prescribed format. After obtaining approval from the CFO the following shall be sent to the bank: – – Process Overview 10. Un-editable delimited text file Covering letter approving payment, signed by the CFO Key Inputs Based on the bank advice letter, the bank shall credit the accounts of the employees and provide a statement/ confirmation of all such transactions to Accounts Team. Key Objectives 11. Bank statement shall be verified by Executive (Payroll) against details of account wise credits and shall reconcile each employee‟s credit instructions with the amount actually credited by the bank. Key Key Activities Activities Differences (if any) shall be reconciled with the bank. The reconciliation shall be reviewed and Process Owners approved by Manager (Payroll). 12. Generate salary slips and e-mail it to each employee and shall contain the following details: Designation & Department Bank account details – Attendance details for the month – Components of salary (basic, HRA, conveyance, etc) – Details of various deductions (PF, ESI, TDS, loans, leave without pay, etc.) – Gross pay and net pay – MIS Employee name/ code – KPM – – Key Formats Flowchart Opening balance of paid leave, number of days of leave taken and balance of paid leave Key Outputs R&A Help 168
- 169. Process: Payroll processing PROCESS INPUTS OUTPUT Executive(Payroll) Salary Advance Tracker Salary Revision Letter Run the payroll processing for the month and generate the Payroll Statement Tax Master Payroll Statement 1 Perform Head Counts reconciliation, Payroll reconciliation Payroll Master Reconciliation Statement Reconciliation Statement along with the Payroll Statement and supporting documents forwarded for review Leave Register Notes 1 2 Executive (Payroll) shall ensure that employee list as per the Employee Master matches with the List of Employees to whose accounts, salary is to be credited. Shall compare the employee-wise salary statements for the current month with the employee-wise salary statements for the previous month and prepare a reconciliation statement for the differences. If any mismatch cannot be justified through existing documentation, then the same shall be highlighted to the CFO whose authorization shall be required for reconciliation of the same. Manager (Payroll) 2 Verify the reconciliation statement along with the supporting documents and signs off the reconciliation statement and Payroll Statement a an evidence of review 169 Approved Reconciliation Statement
- 170. Process: Payroll processing OUTPUT PROCESS INPUTS V Executive(Payroll) 1 W Prepare a Payroll Summary and forward it to Manager (Payroll) for approval Payroll Summary Notes 1 Payroll Summary provides summary of totals of gross salary, deductions/ contributions and net salary. Manager (Payroll) Review and approve the Payroll Summary Forward approved Payroll Summary to Accounts team for accounting purposes 170 Approved Payroll Summary
- 171. Process: Payroll processing PROCESS INPUTS OUTPUT W 1 Preparea Bank Statement and forward it to Manager (Payroll) for approval Notes 1 Bank statement provides details for each employee, mentioning the bank branch name, bank account number and net salary amount to be credited. Bank Statement Manager (Payroll) Review and approve the Bank Statement Approved Bank Statement Executive (Payroll) Prepare Bank Advice Letter (Covering letter) for crediting the bank accounts The approved Payroll Statement, bank statement shall be sent to CFO for approval 171 Bank Advice Letter
- 172. Process: Payroll processing PROCESS INPUTS W OUTPUT CFO Reviewand sign off the documents evidencing the review Signed Payroll Statement, bank statement Bank Advice Letter sent to Head HR for Approval Signed Bank Advice Notes Bank Credit the employees accounts based on the Approved Bank Advice Letter Provide a statement / confirmation of transactions to the Accounts Team 172 Statement / confirmation of transactions to the Accounts Team
- 173. Process: Payroll processing PROCESS INPUTS W OUTPUT Executive(Payroll) Verify Bank Statement against details of account wise credits Reconciliation Statement Notes Reconcile each employee‟s credit instructions with the amount actually credited by the bank Manager (Payroll) Review and approve the reconciliation Generate Salary slips and email it to each employee 173 Salary Slips
- 174. HUMAN RESOURCES 8.1.3 Payroll Processing KeyOutput: − Head Count Reconciliation − Payroll (Variance) Reconciliation − Salary Slips Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 174
- 175. HUMAN RESOURCES 8.1.3 Payroll Processing Responsibility& Authority Matrix : Home Responsibility S.No. Process Overview A/R Activity (A) / Report (R) Authority Executive (payroll) Manager (Payroll) CFO 1 Payroll Run A E V V 2 Preparation of Bank Statement A E V Key Inputs V Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 175
- 176. HUMAN RESOURCES 8.1.4 Statutory Compliances KeyInput: Process Overview • Tax Certificate given by employer to Government (Form No. 24) • Home Tax Certificate given by employer to employees (Form No. 16) • Tax proofs from employees Key Inputs Key Inputs • Process Owners • Monthly salary statement • Key Objectives Payroll / Tax master Investment Declaration • Statutory Compliance Tracker Sheet Key Activities Flowchart Key Formats Key Outputs KPM MIS R&A Help 176
- 177. HUMAN RESOURCES 8.1.4 Statutory Compliances 8.1.4.aKey Process Description – TDS Returns 1. Company shall file Annual return of "Salaries" under section 206 of the Income-tax Act, 1961 with the Government. Also the company shall provide Certificate under section 203 of the Income-tax Act, Home 1961for tax deducted at source from income chargeable under the head “Salaries” to each employee one month from the full and final settlement of an employee / one month from the financial year end. Process Overview 2. Employees shall submit tax proofs before the cut off date as per the company policy. Executive Key Inputs (Payroll) shall scrutinize each employee‟s tax proofs against Investment Declaration provided by them. Any deviations noted shall be highlighted to the employee. Tax proofs along with the Key Objectives Investment declaration for each employee shall be forwarded to Manager (Payroll). On receipt of approval from Manager (Payroll), Executive (Payroll) shall update the tax master based on the Tax proofs and the Investment declarations (For further details, refer Master Management process). Process Owners 3. Executive (Payroll) shall extract employee wise payroll data from the payroll / tax master and salary statements, and arrive at the tax payable amount. Key Formats Key Key Activities Activities 4. Flowchart Flowchart The calculations for tax payable for each employee shall be reviewed and approved by Manager (Payroll). Based on the approval, Executive (Payroll) shall fill in the Form 16 (Certificate under section 203 of the Income-tax Act, 1961for tax deducted at source from income chargeable under the head KPM Key Outputs Key Outputs “Salaries”) and Form 24 (Annual return of "Salaries" under section 206 of the Income-tax Act, 196). 5. Form 24 and Form 16 along with the supporting documents shall be forwarded to Manager (Payroll) for review. Manager (Payroll) shall review the Forms against the supporting documents and shall MIS approve the Forms. 6. Help R&A R&A Executive (Payroll) shall submit the Form 24 to the Government before the due date. After which Form 16 shall be issued to each employee stating the amount of tax deducted and paid. Acknowledgement shall be obtained from the employee for receipt of Form 16. 177
- 178. HUMAN RESOURCES 8.1.4 Statutory Compliances 7. Onsubmitting the Forms, Executive (Payroll) shall update the Statutory Compliance Tracker Sheet and forward it to Manager (Payroll) for review. Manager (Payroll) shall review and approve the updation of Statutory Compliance Tracker Sheet. (Refer AP SOP) Home 8.1.4.b Key Process Description – Gratuity Process Overview Key Objectives 1. Gratuity is a retirement benefit and is paid at the time of retirement of employee based on duration of service. 2. Executive (Payroll) shall calculate the gratuity of the employee and the tax applicable on the gratuity paid. The calculation sheet along with the service details shall be forwarded to the Manager (Payroll) Key Inputs Key Key Activities Activities for review and approval. Process Owners 3. Executive (Payroll) on receiving approval of the calculations shall forward a payment slip along with the other service details and calculation details to the Accounts Department. 4. Key Formats Accounts department on obtaining the Payment slip and other details verifies the same and makes the requisite disbursement along with full and final settlement claim. Entries shall be passed accordingly. KPM MIS Flowchart Key Outputs (Refer Gratuity Act and Income Tax act 1961 for further details) R&A Help 178
- 179. Statutory Compliances >TDS Returns OUTPUT PROCESS INPUTS Executive (Payroll) Investment Declaration Scrutinize each employee‟s tax proofs against Investment Declaration Tax proofs Yes Highlight the matter to the employee Any deviations noted? Employee No Forward the tax proofs along with Investment Declaration for each employee to Payroll Manager Notes Manager (Payroll) Review and approve the documents Forward tax proofs along with Investment Declaration for each to MMT for updation of tax master % 179 P
- 180. Statutory Compliances >TDS Returns PROCESS INPUTS P OUTPUT Executive (Payroll) Update the tax master based on the tax proofs details Form 16 (Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source from income chargeable under the head “Salaries”) Master Management process Extract employee wise payroll data from the payroll / tax master and salary statements, and arrive at the tax payable amount Form 24 (Annual return of "Salaries" under section 206 of the Income-tax Act, 1961) Calculations for tax payable amount Forward the calculations for tax payable amount for each employee to Manager (Payroll) for review Manager (Payroll) Notes Review and approve the calculations for tax payable for each employee Executive (Payroll) Q Fill in the Form 16 for each employee and Form 24 180 Approved calculations for tax payable amount Filled Form 16 Filled Form 24
- 181. Statutory Compliances >TDS Returns INPUTS PROCESS OUTPUT Q Forward Form 24 and Form 16 along with the supporting documents to Manager (Payroll) for review Approved Form 16 Manager (Payroll) Review the Forms against the supporting documents and approve the Forms Approved Form 24 Executive (Payroll) Notes Submit the Form 24 to the Government before the due date Form 24 submitted to the Government Issue Form 16 to each employee stating the amount of tax deducted and paid Form 16 issued to each employee R 181
- 182. Statutory Compliances >TDS Returns INPUTS PROCESS OUTPUT R Employees Statutory Compliance Tracker Sheet Give acknowledgement for receipt of Form 16 Acknowledgement of receipt of Form 16 Executive (Payroll) Update the Statutory Compliance Tracker Sheet and forward it to Manager (Payroll) Statutory Compliance Tracker Sheet updated Notes Manager (Payroll) Review and approve the updation of the Statutory Compliance Tracker Sheet 182 Statutory Compliance Tracker Sheet updated
- 183. Statutory Compliances >Gratuity INPUTS PROCESS OUTPUT Executive (Payroll) Calculate the gratuity of the employee and the tax applicable on the gratuity paid Gratuity Calculation Sheet Forward the calculation sheet along with the service details to the Manager (Payroll) for review and approval Manager (Payroll) Review and approve the Calculation Sheet Notes Approved Gratuity Calculation Sheet Executive (Payroll) Forward a payment slip along with the other service details and calculation details to the Accounts Department Payment Slip Accounts department Verify the payment slip and other details and make the requisite disbursement along with full and final settlement claim 183 Entries passed
- 184. HUMAN RESOURCES 8.1.4 Statutory Compliances KeyOutput: • Form 24 filed with the Government • Form 16 issued to the employees • Approved gratuity calculations Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs Key Outputs KPM MIS R&A Help 184
- 185. HUMAN RESOURCES 8.1.4 Statutory Compliances Responsibilityand Authority Matrix: Home Responsibility S.No. Activity (A) / Report (R) Authority Executive (Payroll) Manager (Payroll) E V Calculation of tax payable amount for each employee A 2 Filling of Form 16 and Form 24 A E V 3 Updation of statutory compliance Tracker Sheet A E V 4 Process Overview 1 A/R Calculation of gratuity amount payable A E V Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 185
- 186. HUMAN RESOURCES 8.1.5 Separation Process KeyInput: − Resignation Letter − Abscondment letter − Termination letter − Email / written notification of resignation − Employee clearance form Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 186
- 187. HUMAN RESOURCES 8.1.5 Separation Process KeyActivities: 8.1.5 Key Process Description – Separation Process Home 1. Process Overview 2. Key Objectives On acceptance of resignation of an employee or on issue of absconment letter or termination letter by concern department, the Executive (HR) shall immediately notify Executive (Payroll) via email / written correspondence to put on hold the salary processing of the concerned employee. Key Inputs The salary hold status in payroll shall enable processing of the Month end payroll. However, the same shall not be included in the bank advice. The salary calculated shall be held and set off against final settlement. Such salary shall be held as unpaid salary till final settlement. 3. Executive (HR) shall tender a copy of the resignation letter or absconment letter or termination letter to the Executive (Payroll) on receipt of approval of the Director . 4. On receipt of the exit clearance form duly acknowledged by all Departments, Executive (Payroll) shall prepare a draft “Final settlement note” taking into account Notice Period, recovery of any advance stated in the exit clearance form, leave encashment, Gratuity and statutory and other deductions. The Key Key Activities Activities Process Owners Key Formats Flowchart F&F computations shall be reviewed by Manager (Payroll) based on following: Key Outputs – – Check if salary components are stated correctly by verifying the same against Payroll Master – MIS Check if short notice period (if any) has been appropriately captured and adjusted. – KPM Check the leave details of the employee (to check if PLs have been accurately computed) Check if computation towards deductions are accurate 5. In case of forced terminations, the F&F shall be performed within 2 working days of termination. 6. Reviewed F&F sheet shall be sent to Head (HR) for approval. Head (HR) shall approve the same by way of a sign-off on the F&F sheet by reviewing it against the company‟s F&F policy. R&A Help 187
- 188. HUMAN RESOURCES 8.1.5 Separation process KeyActivities: 8.1.5 Key Process Description – Separation process Home 7. If there is an amount recoverable, the same shall be recovered from the employee. An advice to make the requisite payment shall be sent to the employee by Manager (Payroll) for recovery of dues from the employee. Acknowledgement of the advice should be filed for further reference. Process Overview Key Inputs 8. Key Objectives However, in cases where there is no recoverable amount, the Full & Final Sheet shall be forwarded to the Accounts Team for accounting and disbursement purpose. The final settlement payout shall be made through account payee cheques only. Prior to handing over the cheque, an acknowledgement of the employee shall be obtained on the Final Settlement Note by Executive (Finance). A copy of the acknowledgement shall be forwarded to Executive (Payroll) for filing purposes. Key Key Activities Activities Process Owners 9. Key Formats KPM MIS In case the employee does not attend the office after tendering the resignation letter or is unable to sign the Final Settlement note in person, a registered courier shall be sent to the employee intimating him the amount payable / recoverable with the Final Settlement Note. On receipt of written confirmation from the employee for the amount mentioned in the Final Settlement note, the cheque should be delivered to the employee via registered courier. Acknowledgements for dispatch of documents and confirmation from the employee shall be filed by Executive (Payroll) in the employee personnel file for further reference. Flowchart Key Outputs R&A Help 188
- 189. Process: Separation Process OUTPUT PROCESS INPUTS ApprovedResignation letter Review the Full and final settlement computation sheet and sign off the same Executive (Payroll) Approved Exit Clearance Form Attendance & Leave report 1 Abscondment Letter Termination Letter Head (HR) 2 amount Any recoverable from the separating employee? Approved Final Settlement Note No Approve the Final settlement note Yes Forwarded to Accounts Team for accounting and disbursement purpose Notes 1 2 On receipt of the exit clearance form duly acknowledged by all Departments, Executive (Payroll) shall prepare a draft “Final settlement note” taking into account Notice Period, recovery of any advance stated in the exit clearance form, leave encashment, Gratuity and statutory and other deductions. The F&F computations shall be reviewed by Manager (Payroll) In case of forced terminations, the F&F shall be performed within 2 working days of termination. Reviewed F&F sheet shall be sent to Head (HR) for approval. Head (HR) shall approve the same by way of a sign-off on the F&F sheet by reviewing it against the company‟s F&F policy. Amount shall be intimated and recovered by the separating employee 3 Prepare a Final Settlement Note by considering Notice Period, recoveries, statutory and other deductions Notes 3 Manager (Payroll) 189 “Final settlement note” shall be prepared taking into account Notice Period, recovery of any advance stated in the exit clearance form, leave encashment, Gratuity and statutory and other deductions
- 190. HUMAN RESOURCES 8.1.5 Separation process KeyOutput: • Approved Final Settlement Note • Service Letter • Reliving Letter • Claims reliving letter • Communication to exit employee HOD Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs Key Outputs KPM MIS R&A Help 190
- 191. HUMAN RESOURCES 8.1.5 Separation process Responsibilityand Authority Matrix: Home Responsibility S.No. Process Overview 1 A/R Activity (A) / Report (R) Separation process Authority Executive (Payroll) A Manager (Payroll) Head (HR) E V V Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 191
- 192. HUMAN RESOURCES 8.1.6 Project SpecificAppointment Key Input: • Attendance Register • P.F. & E.S.I proof submitted by Contractor Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 192
- 193. HUMAN RESOURCES 8.1.6 Project SpecificAppointment Key Activities: • Attendance Monitoring • Statutory Compliance Home Process Overview Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 193
- 194. HUMAN RESOURCES 8.1.6 PSA >Attendance Monitoring Guiding Principles • Home PSA (Project specific appointment) contract requirement shall be provided by the production planning department who shall state the expected manpower requirement for temporary work. 8.1.6.a Key Process Description - Attendance Monitoring Process Overview 1. The attendance of the PSA shall be monitored on a daily basis by the Executive (HR) at site. 2. Each PSA personnel shall be issued an attendance card which shall be maintained by the security personnel at the respective site. At the time of issue of the card an acknowledgement of the PSA shall Key Objectives be obtained on the manual register. 3. The PSA at the time of returning, shall again present the attendance card to the security personnel. The security personnel shall mention the out-time on the card and retain the card with him. 5. On a daily basis, the attendance cards of the PSA shall be sent to the Executive (HR) at site for updation in the PSA attendance register. Key Key Activities Activities When the PSA reports for work at the site premises, the Security personnel shall mention the date and in-time of entry on the attendance card and shall sign it off. 4. Key Inputs Process Owners Key Formats Flowchart Key Outputs KPM 6. MIS Executive (HR) at site shall forward the PSA attendance register along with the copies of attendance cards to Executive (HR) at HO. R&A Help 194
- 195. HUMAN RESOURCES 8.1.6 PSA >Statutory Compliance 8.1.6.b Key Process Description – Statutory Compliance Contractor Payments Home 1. 2. Contractor would be required to submit an evidence of filing of P.F. and E.S.I. for that particular month along with the invoice. The same shall be verified by the Accounts department before processing of payment. Key Inputs 3. Process Overview At the time of appointment of a contractor it shall be ensured that the contractor is registered under P.F. and E.S.I authorities. Responsibility of Contractor to abide by all the relevant and applicable laws and regulations should be expressly stated in the agreement with the Contractor. Key Key Activities Activities 4. Further, it shall be ensured that all basic requirements per Contract Labour Act, 1970 have been fulfilled viz.: Key Objectives Process Owners – License from licensing authority to act as a contractor – Key Formats Principal employer to maintain register and records with details of particulars of employees, nature of work performed by contract labour Flowchart Key Outputs KPM 8.1.6.c Key Process Description – Disbursement MIS 1.On receipt of attendance sheet from site office's payroll team at Ho generate the disbursement forms , these forms are system generated and ambit with Manager (Payroll) R&A 2.The disbursement forms are sent to F&A for approval & releasing of fund . Help 3.Representative of HR from HO will disburse the amount to all PSA s at respective sites. 195
- 196. PSA > AttendanceMonitoring - Labour INPUTS PROCESS OUTPUT Executive (HR) at site Provide Attendance Card to the PSA PSA Report at the respective unit Security personnel Notes Enter date and In time of entry on the attendance Card R 196 Attendance Card
- 197. PSA > AttendanceMonitoring - Labour PROCESS INPUTS R OUTPUT PSA At the time of returning, present the attendance card to the security personnel Security personnel Enter out-time on the card and retain the card with him Updated Attendance Register Forwards the Attendance card to the Executive (HR) at site on a daily basis Notes Executive (HR) at site Update the PSA attendance register 197 Updated PSA attendance register
- 198. PSA > Disbursement INPUTS AttendenceSheet Site by month end PROCESS OUTPUT AT HO system generated disbursement forms System generated disbursement forms forwarded to F&A for approval & releasing fund At each site representative of HR from HO will disburse the payment to PSA Notes 198 PSA month payment
- 199. HUMAN RESOURCES 8.1.6 PSA Key Outputs: • Home ProcessOverview Updated attendance register • Releasing of funds from HO to disburse payments of PSA Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs Key Outputs KPM MIS R&A Help 199
- 200. HUMAN RESOURCES 8.1.6 PSA Responsibility &Authority Matrix : Home Responsibility S.No. A/R Activity (A) / Report (R) Authority Executive (HR)at site Accounts department Process Overview Key Inputs 1 PSA attendance monitoring A 2 Review of PSA invoice A E V Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 200
- 201. HUMAN RESOURCES 8.2 Reimbursement Key Input: − Home ProcessOverview Travel Requisition form − Travel expense report Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 201
- 202. HUMAN RESOURCES 8.2 Reimbursement Key Activities: Home 8.2.1Key Process Description – Travel Expense Reimbursement 1. On return from travel, the employee shall submit the Travel Expense Report duly authorized, within 10 days of returning form travel. The approving authority is indicated in the following table: Process Overview Key Inputs Person Travelling Key Formats 3. KPM CMD All other 2. CMD B02 Process Owners Approving Authority B01 Key Objectives Functional Heads Each individual requesting reimbursement shall forward to Accounts department a properly approved and a detailed listing of expenses itemized in chronological order on the Travel Expense Report (TER). TER shall give full description of the nature of expense incurred. Any changes in amounts on travel expense report must be initialed by the person making the change. All original bills, ticket stubs, etc., must be attached to expense statements. In case original bills are not available, an exception approval from the authorized personnel as per DOA Key Key Activities Activities Flowchart Key Outputs shall be obtained. MIS 4. Approved Travel expense report shall be submitted to Accounts Team within 7 days of completion of tour. In case of non-submission of travel expense statement within 7 days, the amount of advance may be recovered from employee‟s salary. R&A Help 202
- 203. HUMAN RESOURCES 8.2 Reimbursement Guiding Principles • LocalConveyance claims shall be processed for all the employees once in a month Home 8.2.2 Key Process Description – Local Conveyance for non field staff 1. Process Overview 2. Key Objectives Employee shall submit claims pertaining to Local Conveyance in a Conveyance Form in a Standard Format with details of travel undertaken during the month to the HOD for approval. The approved form shall subsequently be submitted with the Executive (HR). The Conveyance Form shall capture the following details: – – Distance Traveled – 3. Date of travel Purpose of travel – Key Formats Employee personnel details – Process Owners Mode of transport 5. Help Checks the distance mentioned between locations – MIS Flowchart Check the particulars mentioned in the form against the security register (in-time and out-time) – 4. Key Key Activities Activities On receipt of the Conveyance form, Executive (HR) shall perform following checks: – KPM Key Inputs Calculates the amount as per the mode of transport as per the Company Policy A claim register (manual register) shall be maintained by Executive (HR) that captures details of the claims processed for an employee during a month. The register shall be maintained to prevent processing of claims twice for the same employee. Key Outputs R&A On review of the Conveyance Forms, Executive (HR) shall prepare a consolidated statement that summarizes the expenses claimed by employees. The Consolidated Statement along with the Conveyance forms shall be sent to Manager (HR) for approval. 203
- 204. 8.2 Reimbursement HUMAN RESOURCES 6. Manager (HR)reviews the statement along with individual claim forms and approves the same by way of a sign-off on the hard copy of the statement. Home Process Overview 7. The approved statement and the conveyance forms are sent to the Accounts Team for Accounting purpose. Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 204
- 205. Process: Reimbursements -Travel expense reimbursement OUTPUT PROCESS INPUTS Employee 1 Travel Expense report On return from travel, submit Travel Expense report along with original bills for authorization Authorized Signatory Approves the expense report by way of a sign-off 2 Approved Travel Expense Report to be submitted to Accounts within 7 days of completion of tour Notes 1 Within 10 days of returning form travel Accounts In case of non-submission of 2 travel expense statement within 7 days, the amount of advance may be recovered from employee‟s salary. 205 Approved Travel Expense report
- 206. Process: Reimbursements –Local Conveyance PROCESS INPUTS Approved conveyance form sent to the Executive (HR) OUTPUT Executive (HR) Check the particulars mentioned in the form against the security register and check the distance mentioned between locations and calculate the amount depending on the mode of transport as per the Policy Submits conveyance form to HOD for approval Conveyance Form Maintain a claim register (manual register) On review of the Conveyance Forms, prepares a consolidated statement Employee Consolidated Statement along with the Conveyance forms shall be sent to Manager (HR) for approval Notes J Manager (HR) 206 Consolidated Statement
- 207. Process: Reimbursements –Local Conveyance for Non-Field Staff INPUTS PROCESS OUTPUT J Review the statement along with individual claim forms and approve the same Approved statement and conveyance forms are then sent to the Accounts Team for accounting purpose Notes 207 Approved Consolidated Statement
- 208. HUMAN RESOURCES 8.2 Reimbursement Key Outputs: − ApprovedTravel expense Report Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Key Output Output Outputs KPM MIS R&A Help 208
- 209. HUMAN RESOURCES 8.2 Reimbursement Responsibility &Authority Matrix : Home Responsibility Authority A/R S.No. Activity(A)/ Report (R) Process Overview HOD 1 Travel Expenses Reimbursement A 2 Key Objectives Local Conveyance Expense Reimbursements for non Field staff A Authorized Signatory V V Employee Manager (HR) Key Inputs E E V Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 209
- 210. HUMAN RESOURCES 9. HRIS Key Input: − Checklistfor Information to be captured − Software for HRIS Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 210
- 211. HUMAN RESOURCES 9. HRIS 9.1 KeyActivities: Implementation of HRIS 1. Process Overview 2. The checklist shall be reviewed by Manager HR . 3. Home Before implementing HRIS a checklist of information that needs to be captured shall be prepared After review by Manager HR this should be forwarded to Head HR for final review and approval 4. Typical Human Resource Information System (HRIS) should provide details like: • Performance development plans • Training received • Disciplinary action received • Personal employee information • Management and key employee succession plans • High potential employee identification • Applicant tracking, interviewing, and selection • Reporting and analysis of employee information • KPM Pay grades and positions held • Key Formats Pay raises and history • Process Owners Attendance, Leave credited & used • Key Objectives Key Inputs Company-related documents such as employee handbooks, emergency evacuation Key Key Activities Activities Flowchart Key Outputs procedures, and safety guidelines. MIS • • 5. Percentage of joining with reference to issue of offer letters • R&A Details of Key result area (Quantified targets) with reference to Job description. • Help Job descriptions framed as per Band structure . Retention Rate and Attrition Rate in company Enter the information of each of the personnel in the company into the HRIS and update the same periodically. 211
- 212. Process: Prior implementationof HRIS INPUTS HRIS Notes PROCESS OUTPUT Executive HR Prepare a checklist of information that needs to be captured in HRIS Manager HR to review the checklist Head HR to approve after duly verifying the checklist Enter the information of each of the personnel in the company into the HRIS and update the same periodically 212 Updated HRIS
- 213. HUMAN RESOURCES 9. HRIS Key Output: – ApprovedChecklist of information to be captured by HRIS. – Successful implementation of HRIS (updated) Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Output Outputs KPM MIS R&A Help 213
- 214. HUMAN RESOURCES 9. HRIS Responsibility &Authority Matrix : Home Responsibility Authority A/R S.No. Activity(A)/ Report (R) Process Overview Head HR Manager (HR) Executive (HR) 1 Checklist of information to be capture in HRIS R V V E 2 Key Objectives Capture of information R V V E Key Inputs Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 214
- 215. HUMAN RESOURCES 10. Statutory Compliances KeyInput: − Checklist for statutory Compliances − Monthly Payroll sheets. Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 215
- 216. 10. Statutory Compliances HUMAN RESOURCES KeyActivities: 10.1 Key Process Description – Statutory Checklist Home 1. Executive HR shall maintain a checklist of Statutory compliances needed during project establishment or for any future purposes related to Manpower. Process Overview Key Objectives 2. Checklist shall include cutoff dates for each compliance and shall be update by executive HR from time to time. 3. Manager HR should review the same on fixed intervals & if any changes are required then the same shall be suggested. 4. Here Statutory Compliances refer to : Process Owners Key Formats Key Key Activities Activities Executive should update the checklist with reference to changes suggested by Manager and document the approval of Manger on the same. 5. Key Inputs • Workmen Compensation • Labor Relations & Laws • Provident fund • Flowchart ESI Key Outputs KPM MIS R&A Help 216
- 217. 10. Statutory Compliances HUMAN RESOURCES KeyActivities: 10.2 Key Process description – Statutory payment – PT, PF and ESI Home Process Overview 1. Executive Payroll shall prepare the computation for PT,PF and ESI along with the Payroll processing each month. 2. The PT, PF and ESI computation shows the amount to be deducted from each employee and the Company contribution for PF. 3. Key Objectives Key Inputs The amount to be deducted from employees towards PT is also reflected in the Pay Sheets generated. Activities Key Activities 4. PT, PF and ESI computation (break-up & a consolidated sheet) prepared by Payroll personnel is forwarded to Manager Payroll for verification. 5. Post verification of Manager Payroll, the computation & a consolidated voucher shall be forwarded to GM (Accounts) for verification & payment processing. 6. On forwarding of the consolidated sheet by the GM (Accounts), AM (Accounts) shall process the statutory dues along with the month end salary processing entry. Process Owners Flowchart Key Formats KPM 7. Payroll shall create payment requisition for the dues based on due dates of payment & forward it to the GM (Accounts) after verification of the approved PT, PF and ESI computation by Manager (Payroll). MIS 8. Help R&A The GM (Accounts) shall mention the name of the bank on the requisition and forward it to AM (Accounts) for payment processing 9. Key Outputs Key Output AM (Accounts) shall prepare the payment voucher after due approval by GM (Accounts) 217
- 218. Process: Statutory Compliances INPUTS PROCESS OUTPUT 1 Checklistof Statutory Compliances Executive HR Prepare a checklist of statutory compliances needed during project site establishment or for any future purposes related to Manpower Manager HR should review the same on fixed intervals & if any changes are required then the same shall be suggested. Executive should update the checklist with reference to changes suggested by Manager and document the approval of Manager on the same Notes 1.1 Checklist shall include cutoff dates for each compliance and shall be update by executive HR from time to time. 218 Approved checklist for statutory compliances
- 219. Process : Statutorypayment – PT, PF and ESI INPUTS OUTPUT PROCESS Executive (Payroll) 1.PT and PF/ESI GL Account 2.Monthly Payroll sheets. PT, PF & ESI (challans) Computation Prepares the computation of PT, PF & ESI (challans) Manager HR Reviews and approves the computation GM (Accounts) Notes Verifies & forwards consolidated sheet to AM (Accounts) for accounting & payment AM (Accounts) 219 Q
- 220. Process: Payment Accounting> Statutory payment – PT, PF and ESI PROCESS INPUTS Q Based on challans and payment requisition prepares the payment voucher OUTPUT Payment Voucher GM (Accounts) Forwards to cheque signing authority as per DOA with breakup Cheque Cheque signed as per DOA Notes Payment submitted to the PT, PF and ESI authorities by HR team Files Acknowledgement of payment 220 Acknowledgement of payment
- 221. HUMAN RESOURCES 10. Statutory Compliances KeyOutput: – Process Overview – PT, PF and ESI (challans) – Home Approved checklist for statutory compliances. Approved Payment Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Output Outputs KPM MIS R&A Help 221
- 222. HUMAN RESOURCES 10. Statutory Compliances Responsibility& Authority Matrix : Home Responsibility Authority A/R S.No. Activity(A)/ Report (R) Process Overview Head HR Process Owners 1 Checklist for statutory compliances R 2 Key Objectives Submission of Challans A 3 Statutory Payment A Manager (HR) V Executive (HR) E E V Key Inputs Key Activities E Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 222
- 223. HUMAN RESOURCES 11. Exit Management KeyInput: − Resignation Letter − Employee clearance form − Exit interview form Home Process Overview Key Inputs Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 223
- 224. HUMAN RESOURCES 11. Exit Management KeyActivities: 11.1 Employee Clearance Home 11.2 Employee Exit Interviews Process Overview Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 224
- 225. HUMAN RESOURCES 11. Exit Management 11.1Key Process Description – Employee Clearance 1. Home The employee shall notify his/ her HOD via email / written letter of their intent to separate from the company. HOD shall first undertake employee counseling and consider the following prior to accepting the resignation: – Renegotiate employment terms – Key Objectives Retention of the employee – Process Overview Discuss reasons for termination with the employee – Process Owners 2. Key Formats Review job role/ position If the HOD accepts the resignation, he shall forward the employee resignation along with the Block master record request form to Executive (HR). HOD shall specify the tentative date of relieving on the employee‟s resignation letter. On receipt of the resignation letter the Executive (HR) shall forward the resignation letter and the block master record request form to the Head (HR)/ Director for approval. An employee can be terminated from employment services on decision by the Management. In all such cases, the due process as applicable to employee resignation, such as employee clearance, shall need to be gone through. In addition a termination letter shall be issued to the employee KPM Key Inputs Key Key Activities Activities Flowchart Key Outputs authorized by the respective reporting officer and HOD of the employee, Head (HR) and Director . 3. On obtaining the approval, the Executive (HR) shall perform the following activities: MIS R&A – Initiate process for blocking employee master Help 225
- 226. HUMAN RESOURCES 11. Exit Management Payrolland Accounts team shall be informed to avoid processing any payments approved for the separating employee – Executive (Payroll) shall block the payroll master record of the concerned employee – Home HR team shall be informed about the notice period that shall be served by the employee as per the appointment letter or to provide them with a time estimate for undertaking fresh recruitments (if the appointment letter is silent on notice period) Process Overview 4. Key Objectives Process Owners 5. The Manager (HR) shall inform the employee to clear all dues with concerned departments. A clearance shall be given to a separating employee only when all property items and any debts owed by the employee are liquidated. Key Inputs Key Key Activities Activities Manager (HR) shall provide the separating employee with an Exit Clearance Form to ensure recovery of: Flowchart – – Key Formats 6. KPM Issued property, identification, keys, access cards, accountable/ proprietary documents. Recovery of any outstanding debts/ advance The employee shall complete the employee information portion of the form and have the officials of the concerned departments sign-off the respective area indicating all requirements have been met by Key Outputs the employee. MIS Help 7. Handover: As part of the employee clearance activities, the Supervisor shall identify the tasks handled by the separating employee and shall ensure knowledge-transfer prior to the employee‟s departure. The Supervisor shall take charge of the relevant files – both hard copy and electronic – into shared folders or a document library. The separating employees shall be asked to organize these files and to create role and task folders or notes for their successor. R&A 226
- 227. HUMAN RESOURCES 11. Exit Management 11.2Key Process Description – Employee Exit Interviews 1. Home On completion of clearance activities, there shall be a second level of counseling by the company personnel. The employee shall undergo two rounds of exit interview as enumerated below: – Process Overview Key Inputs – Key Objectives In the first round, the employee shall be interviewed by the HoD or the reporting manager of the employee. 2. In the second round, the employee shall be interviewed by Head (HR) The views of the separating employee in the exit interviews shall be recorded in an Exit Interview form that shall be signed off by the personnel conducting the interview. 3. Details filled in the Exit interview form should be electronically captured by Executive (HR) and reviewed by Manager HR 4. On a quarterly basis, the exit interviews shall be strategically analyzed and the results shall be reported to management by Head (HR). The analysis of exit interviews shall enable: Process Owners Key Formats Key Key Activities Activities – Flowchart Provide root cause for resignation of employees Key Outputs MIS – Provide direct indications as to how to improve employee retention – KPM Provide relevant and useful data for analyzing training needs – Offer insights for enhancing employee incentive programs, organizational structure and managerial approach R&A Help 227
- 228. HUMAN RESOURCES 11. Exit Management 5. 6. Home ProcessOverview The separating employee shall be issued a Employee Relieving Letter on the last day in the company. The relieving letter shall be prepared by the Executive (HR) and signed off by the HOD of concerned department, Head (HR) and Director . Key Inputs Key Objectives Key Key Activities Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS R&A Help 228
- 229. Process: Exit Management– Employee Clearance If the HOD accepts the resignation, inform HR Team for processing termination advice and forward Block master record request form HOD to negotiate with the employee and understand the reasons for resignation OUTPUT PROCESS INPUTS Executive (HR) Approved Resignation Letter Resignation Letter and Block master record request form sent to Head HR / Director (Corporate affairs) for approval 1 HOD Block Master record Master Management Resignation Letter Employee Exit Clearance Form Notify HOD of the intent to resign Clear all dues with concerned department Employee Manager (HR) Employee Notes 1 Executive (Payroll) shall block the payroll master record of the concerned employee Provide separating employee with Exit Clearance Form Complete and sign the Exit Clearance Form 229 Complete and sign Exit Clearance Form
- 230. Process: Exit Management– Employee Exit Interviews OUTPUT PROCESS INPUTS HOD or the reporting Manager Conduct the first round of Exit Interview Exit Interview Form Head (HR) Conduct the second round of Exit Interview Executive (HR) Interviewer shall record the interview in an Exit Interview Form On the last day in the company, Issue Employee Relieving letter signed off by HOD, Head (HR) and Director (Corporate affairs) Exit interviews shall be strategically analyzed and the results to be reviewed by Manager HR and reported to management on a quarterly basis Separating Employee 230 Employee Relieving letter
- 231. HUMAN RESOURCES 11. Exit Management KeyOutputs: − Approved employee clearance form − Completed exit interview form − Employee Relieving Letter Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Key Key Outputs Output Outputs KPM MIS R&A Help 231
- 232. HUMAN RESOURCES 11. Exit Management Responsibility& Authority Matrix : Home Process Overview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS RR &A & A Help 232
- 233. HUMAN RESOURCES Key Formats Key Formats: Home ProcessOverview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Formats Key Outputs KPM MIS R&A Help 233
- 234. HUMAN RESOURCES Key Formats Key Formats: Home ProcessOverview Key Inputs Key Objectives Key Activities Process Owners Flowchart Key Formats Key Formats Key Outputs KPM MIS R&A Help 234
- 235. HUMAN RESOURCES Key Performance Measures KPM Unitof Measure Frequency Target vs. Actual Staff cost as a percentage of total cost % Quarterly Number Quarterly Number Monthly Number Monthly Home Process Overview Budgeted vs. Non-budgeted recruits department wise during the year Key Objectives Key Inputs Acceptance Rates: number of applicants that accepted the position divided by the number of applicants that Key Activities were offered the position Process Owners Delays in closing vacancies Flowchart No. of applicants per channel (viz. job sites, placement Number Monthly % of new hires achieving 6 months service % Quarterly % of new hires achieving 12 months service Key Formats % Quarterly agencies and others) Key Outputs KPM KPM MIS R&A No. of new hires confirmed as per defined timelines Number Quarterly Help 235
- 236. HUMAN RESOURCES Key Performance Measures KPM Home ProcessOverview Unit of Measure Frequency Average Absenteeism rate % Quarterly Average employee turnover rate % Quarterly Number Quarterly Average Tenure (Total no. of working years / total Key Objectives headcount) Key Inputs Key Activities %age of exiting employees for whom exit interviews % Quarterly Training hours per Full Time Employee (FTE) Number Monthly Training cost per FTE Number Monthly were conducted Process Owners Flowchart Key Formats Key Outputs KPM KPM Error-free payroll transactions per month MIS % Monthly Error-free reconciliations % Monthly R&A Help 236
- 237. HUMAN RESOURCES MIS MIS: Home Process Overview Key Inputs KeyObjectives Key Activities Process Owners Flowchart Key Formats Key Outputs KPM MIS MIS R&A Help 237
- 238. HUMAN RESOURCES Help – Guidelineson Using This Manual Process Overview HUMAN RESOURCES 2 1. Recruitment Home Home Legend 3 1.2 New Employee Requisition 1. Major process – HR and Payroll 1.3 Sourcing & Screening Process Process Overview Overview Key Inputs 2. Master Management 1.4 New Employee Selection 1.5 Employee Joining Process Human Resources Key Objectives Process Overview 1.1 Manpower Planning Process Owners 1 Key Activities 1.6 Employee Induction Process 3. Employee Benefits 1.7 Employee Confirmation Process 2. Sub-processes to the major process: e.g. 1. Recruitment Key Inputs Flowchart Key Formats 1.8 Review of selection Procedures KPM Key Objectives 4. Exit Management MIS Key Outputs 1.9 Invoice Certification for Recruitment agencies R&A Help 5. Reimbursements Process Owners 4 Key Formats PROJECT DESIGN LIFECYCLE Masters Home 3. Key Activities to the Sub Process e.g. 1. Manpower Planning 2. New Employee Requisition 3 . Sources & Screening 4. New Employee Selection 5. Employee Joining Process 6. Employee Induction Process 7. Employee Confirmation Process 8. Revision of selection procedures 9. Invoice Certification Key Activities Flowchart Key Outputs KPM Process Overview 4 Key Inputs Key Objectives Key Activities 4. Elements of the Standard Operating Procedure which would act as links to navigate through this manual Process Owners MIS R&A Key Flowcharts Key Formats Key Outputs KPM Help Help MIS R&A Help 90 Preliminary and tentative – for discussion purposes only Contact For any queries or clarifications, please contact: CEO & Group Director Aashumal International Pvt. Ltd. 238
- 239. HUMAN RESOURCES Help – Guidelineson Using This Manual Flow Chart Symbols Home Process Overview Key Inputs Process Key Objectives Decision Document System Activity performed Yes/No or other condition Document Name System processing data or providing control Process Owners Key Activities Flowchart Key Formats A Key Outputs MIS Off-Page Connector Reference to other control process KPM Off-page Reference Reference to continuation of same process GL Account GL Account Name Entity/ Department Represents person/ department doing an activity R&A Help Help 239
- 240. HUMAN RESOURCES Help – Guidelineson Using This Manual DEFINING SOP Home Process Overview Key Objectives COMPONENTS OF SOP MANUAL Standard Operating Procedures (‘SOP’) define the process objective and the tasks therein, PROCESS OVERVIEW : A overview of all the major activities and sub-activities involved in the process KEY OBJECTIVES : A statement outlining the business rationale for the process and sub-processes. PROCESS OWNERS : Personnel who have the authority and accountability for conducting the activities indicated. : Key process inputs including documents and information flows that are required for effective execution of the process and subprocesses. - by specifying detailed work-steps, - identifying the personnel responsible for each work-step, - specifying the point in time, location of and how each work-step is to be performed. SOPs are usually documented for all key business processes. Process Owners KEY INPUTS : Diagrammatic representation of the sequence of the activities and the tasks therein, with key information, decision points and document flows. KEY OUTPUTS : Key process outputs, including the key documents, exception based management and operational information. R&A : Various Department Interfaces involved in the process with their responsibility KPM : Key parameters used for measuring the performance of an individual / department MIS : Key Management Information System reports that can be generated in this process. KEY FORMATS : Formats that enable execution of the worksteps and ensure standardization Key Activities Sequential description of activities to be executed in order to achieve the objectives and ensure adequate risk management. : Key Inputs KEY ACTIVITIES Flowchart Key Formats KPM MIS Help Help BENEFITS OF SOP • • • • • • • • Alignment of processes with business need Standardization of processes Transparent, robust and flexible processes in a dynamic environment Defined roles and responsibilities for persons, departments and committees Key performance indicators defined Monitoring procedures to track compliance Adequate level of segregation of duties Identify information system needs KEY FLOWCHARTS Key Outputs R&A 240