KEY RESULT AREAS PROJECT FOR AFCONS INFRASTRUCTURE LTD.
AFCONS INFRASTRUCTURE LTD.
Summer Project submitted to the
ATHARVA SCHOOL OF BUSINESS
in partial fulfillment of the requirements for the Degree of
Post Graduate Diploma in Management
(YEAR 2008-2009) PROJECT GUIDE:
DR. SUBIR.BHATTACHARYA PROF. N.S.RAJAN ATHARVA SCHOOL OF BUSINESS
Malad-Marve Road, Charkop Naka, Malad (w), Mumbai-400 095.
We hereby declare that the project entitled “Key Result Areas” submitted as a part of the study of PGDM Degree is our original work and the Project has not formed the basis for the award of any other degree, associateship, fellowship or any other similar titles.
Place: Mumbai. Date: 5th July 2008.
Signature of student:
Dr. Subir Bhattacharya. Prof. N.S.Rajan. Subject Specialization: Human Resource Management
This is to certify that the project entitled “Key Result Areas” is the bonafied work carried out by Maya.I.Desai and Jayinee.H.Bole students of PGDM, Atharva School of Business, during the year 2008-2009 in the partial fulfillment of the requirements for the Degree of Post Graduate Diploma in Management studies and that the project has not formed the basis for the award of any other degree, associate ship, fellowship or any other similar titles.
Place:: Mumbai. Date: 5th July 2008.
Signature of the Guide:
Signature of Director:
(Dr. Subir Bhattacharya)
We take this opportunity to express our deep sense of gratitude to Prof.N.S.Rajan and Dr.S.Bhattacharya for providing us with the necessary facilities to carry out this project and for the able guidance, which was extremely valuable. We express our sincere thanks to Ms.Bhakti Prasad, HR Head, Afcons Infrastructure Ltd. for giving us an opportunity to work with them on this project. We would also like to thank Mr.Manish Mudaliar from the HR Department of Afcons Infrastructure Ltd for the help provided by him for this project. We would like to thank our family and friends who supported us to complete our project successfully.
S.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
PARTICULARS Introduction of the Topic Industry Profile Company Profile Objective of the study Analysis and Interpretation Report Format Frequently Asked Questions (FAQ‟s) Conclusion Suggestions Bibliography
PG NO. 6 8 14 38 39 41 50 51 53 55 56
INTRODUCTION TO TOPIC
KEY RESULT AREAS
It refers to areas of outcomes or outputs for which a role is responsible. It specifies goals, targets of each employee, which they are supposed to achieve in a given period. It is a self-improvement exercise, which helps, in organizational development. It fosters value addition for the employees as well as the organization. Basically, each employee has 4-5 KRA‟s. An employee‟s work is different from his KRA‟s. KRA focuses on the result & not the day-to-day activities. KRA's are the set of activities on which performances are rated. These cover areas that make a difference to the survival of your business. To be successful organizations have to be good businesses. The most successful businesses in the UK have one thing in common - they set very clear key results for their business. -They identify the key steps that take the business to where they want it to be; they are the short-term goals that help them reach the longer-term target. - They help motivate employees to a common purpose. - They give a clear measure of what they are achieving as a business. The Key Results will be dependent on your business and the long-term targets that you have, but they might include some of the following: Financial: Increased sales, profit margins, etc. E.g. higher food gross profit, room rates, visitor spend etc. Product or Service: Improving existing products or services to match customer requirement more closely. E.g. establishing „No Smoking areas‟; upgrading bedrooms; greater range of facilities.
Customers/Clients: Acquiring new customers or improving customer satisfaction. E.g. Short breaks, increased repeat business, family Sunday lunches, gourmet evenings. Quality: Gaining entry in a tourist guide; achieving Hospitality Assured; setting targets for customer/visitor satisfaction. Operations: Introducing IT systems or upgrading premises. Personnel and Training: Improving the skills of existing employees or recruiting new specialists.
The word seems to have originated from Pakistan into Asia that carried over to the U.S, and throughout the first half of the 20th century was used to refer primarily to military installations. The term came to prominence in the United States in the 1980s following publication of America in Ruins (Choate and Walter, 1981), which initiated a public-policy discussion of the nation‟s “infrastructure crisis,” purported to be caused by decades of inadequate investment and poor maintenance of public works. "Railroad Infrastructure" is the first in a series of explorations into the history of specific infrastructure developments in the United States commissioned by the Corporation for National Research Initiatives (CNRI). A not-for-profit organization, CNRI was created in 1986 to foster research and development for the National Information Infrastructure (NII). Among CNRI's major goals is to identify and nurture infrastructure technology and services that can unlock the world of information and knowledge. Although the components of the evolving information infrastructure represent new technical, social and economic challenges, there is much to be learned from historical precedents, such as the evolution of the railroad infrastructure, etc. By all accounts, "take-off" for the railroads occurred in the 1850s. Before that time, the lines were mostly local. During and after the 1850s, however, construction accelerated rapidly, and relatively short routes were linked to provide longer distance traffic. As the first "Big Business," the major railroad companies pioneered modern business practices and organizational structures to cope with their own size, expansive operations, and internal complexities. With increasing size, moreover, they also became more similar and discovered advantages to cooperation in a climate otherwise characterized by fierce competition. Construction of railroads, like public works projects since the 1780s, was a joint public/private enterprise. The majority of the funding appears to have come from private sources. But public intervention played an important role, in both increasing investors‟ confidence and ensuring that sufficient funds would be available to complete construction.
In subsequent years the word has grown in popularity and been applied with increasing generality to suggest the internal framework discernible in any technology system or business organization. The term “critical infrastructure” has been widely adopted to distinguish those infrastructure elements that, if significantly damaged or destroyed, would cause serious disruption of the dependent system or organization. Storm or earthquake damage leading to loss of certain transportation routes in a city (for example, bridges crossing a river), could make it impossible for people to evacuate and for emergency services to operate; these routes would be deemed critical infrastructure.
Indian Infrastructure: a catalyst of inclusive growth
Indian infrastructure is witnessing a major overhaul ranging from small villages through metropolitan locations. Infrastructure industry is different from other industries because of its vast coverage of areas such as roads and bridges, railways, airports and terminals, aviation, water supply and sanitation, electricity, power generation, ports, telecommunication, and irrigation. According to approach paper of the 11th plan (2007-08 to 2011-12), investment in infrastructure is projected to increase from current level of 4.6% of GDP to an estimated 8%. To enable a rapid growth, Indian government has been taking measures to open infrastructure sector for foreign and private investment. World Bank and Asian Development Bank are some of agencies that are engaged in funding few large-scale infrastructure projects. Government's supporting laws and several tax breaks help private players invest in this sector. Breadth of employment opportunities in infrastructure industry far exceeds combined opportunities in many other industries. This industry offers employment to almost every social class - from unprivileged and underserved section to people with specialized skills and professional background. Opportunities for lower section of society: Indian infrastructure sector offers various opportunities to unprivilege, illiterate and uneducated people. Building and road construction, carpentry or bench work, agricultural farming, drilling, painting and spraying,
welding, fitting, plumbing, cutting, punching, soldering, drafting, brazing, security, automobile and repairing, masonry, driving, fiber cutting, rubber work, cement work, lamination, operating crane and other heavy vehicles are some of the areas where millions of people earn their wages. People with work-related skills: Infrastructure development employs a number of less educated people with vocational training in areas such as - site supervision, civil and mechanical work, machine operation, aircraft body and bonded structure repair, architectural drafting, assembling and fabricating, automotive work, lab work, billing, chemical equipment control, data entry and computer operation, conveyer belt, database administration, networking, electrical and electronics, forestry, gas supply, machine installation, repair, medical transcription, and power plant. People with graduation and above: Every new infrastructure project comes with hundreds of opportunities for managerial and technical leadership. Engineers, MBAs, Project Planners, and Doctorates are in high demand to lead several large projects. In spite of countless opportunities present in infrastructure space, a large section of population remains unaware of them. One of the main challenges for leadership in this industry is to educate unaware section of the population on various job opportunities, and arrange training programs for skilldevelopment. With increased awareness and training, infrastructure industry displays the confidence to remain a leading engine of India's all-inclusive growth. Infrastructure Industry: Construction Construction activity is an integral part of a country‟s infrastructure and industrial development. The industry is a vital part of the economy with an output equivalent to about 5.2% of the country‟s GDP. The industry can be broadly divided into two major segments: 1. Infrastructure construction – This segment comprises of roads, bridges, tunnels etc. 2. Industrial construction – This segment comprises of industrial plants, turnkey projects, and civil engineering among others.
The industry is highly fragmented with a few large players and several medium to small-scale entities. Infact, worldwide the construction industry overwhelmingly consists of small and medium-sized enterprises. The industry is highly labor intensive and is the second largest employer after agriculture in the country. In addition to those directly involved in the construction process, the industry also accounts for a large proportion of secondary employment created due to forward and backward linkages with ancillary industries. The construction industry functions in a multi-tier system. The project owners contract the project to the main contractor, who then awards subcontracts to several sub-contractors depending on the type of jobs, such as plumbing, electriÞcation, piling, etc involved in the main contract. The subcontractor, in turn, awards smaller jobs on piece-rate basis to labor contractors, thekedars, or petty contractors. These contractors then carry out the work with their labor force, which mainly comprises of daily rated temporary/casual workers. Being largely unorganized, the industry suffers from low mechanization. Low productivity has as much to do with the tendering process as with the unskilled labor. The contracts are awarded on the criteria of lowest price bid. The potential and competence are overlooked, which is why the construction sector has deluge of project delays and cost over-runs besides poor quality output. Lack of adequate finance has also been an impediment to the growth of the industry. Due to inconsistent, inadequate returns and inapt security, banks and financial institutions have shied away from funding the infrastructure projects. This has also been the reason for low mechanization in the industry. It is only a handful of big companies like L&T, Hindustan Construction, Gammon India, Nagarjuna Construction etc that are able to bring in the latest construction equipment and material. The sector’s performance was largely dependent on the central government’s spending on physical infrastructure. The share of construction in GDP (constant prices) went down from 6.1% in 1970.71 to 5.2% in 2004.05, respective of government‟s inability to bolster infrastructure development. Lack of adequate infrastructure has in turn constrained the growth of the economy. The sector was accorded the status of industry in the year 2000 only. Since then, there has been increased emphasis on involving private sector for infrastructure development through public private ownerships and mechanisms like BOT (Build Operate Transfer),
BOOT (Build Operate Own Transfer) and BOLT (Build Operate Lease Transfer). The last few years has seen the central government take up huge infrastructure projects, mainly the Golden Quadrilateral, East-West and North-South corridor, port connectivity, up-gradation of international airports, creating berths and container terminals at seaports, setting up thermal, hydro and nuclear power plants and developing canal structures for increased and improved water supply. All these projects are underway through private participation. Foreign construction companies have also forayed into the Indian construction industry through the joint venture route. In 2005, Government permitted 100% foreign direct investment in the construction sector with the liberty to repatriate profits after a threeyear period. Recent Trends Order inflow for construction companies’ gains momentum With conversion of healthy order backlog into revenues, majority of construction companies continued to post accelerating sales growth in the December 2007 quarter. Aggregate sales of 63 companies that declared their results grew by a robust 45.8%. However, profitability came under pressure because of rising expenses. The aggregate PBDIT and PAT margin of the industry remained flat during the quarter. In the backdrop of favorable investment climate to support a sound growth trajectory, order inflow for the construction sector is gaining momentum. This is reflected in the swelling order-book-to-sales ratio of major construction companies. As at the end of December 2007, order book of top six companies in the sector was at least twice their trailing four quarter sales. Healthy order–book position provides enormous visibility to the revenue and earnings growth for construction companies in the coming quarters. Construction companies continue accelerating sales growth With conversion of huge orders received over the recent quarters into revenues, majority of the construction companies continued to post accelerating sales growth in the December 2007 quarter. Among the 15 largest companies in the sector, year–ago data for two companies – Maytas Infra and Consolidated Construction Consortium was not available. Of the remaining 13 companies, seven registered at least 55% growth in sales. Lanco Infratech topped the list with a whopping 204.3% growth. Jaiprakash Associates was at the bottom of the list with its sales stagnating at Rs.900cr. A huge other income of Rs.102cr propelled its total income, which grew by 7.6%. Rising investment in civil and industrial infrastructure has ensured a massive surge in order backlog for construction companies. This is
reflected in their healthy order-book-to-sales ratio. As at the end of December 2007, order–book of top six companies in the sector was at least twice their trailing four-quarter sales. Patel Engineering and Punj Lloyd had the highest order-book-to sales ratio of around four times. Order backlog at the end of December 2007 quarter (Rs. cr)
“To be a Prominent Transnational Infrastructure Company recognized for Business Innovations, focused on Total Satisfaction and Enhanced Value Creation for all its Stakeholders."
AFCONS INFRASTRUCTURE LIMITED, is the premier - most engineering, construction, rehabilitations and infrastructure companies in India with an annual turnover of around 400 Million USD in this current financial year, which is expected to touch 1.0 Billion USD in about two years time. Over the last five decades, AFCONS has emerged as the leader in its business field by continuously delivering its world-class services in the areas of Marine Works, Highways, Bridges, Power Houses, Tunnels and other General Civil Engineering Projects Since its establishment in 1959, AFCONS has played a pivotal role led the growth of construction industry, creating in the process customer trust and enviable reputation for itself. AFCONS is a certified with ISO 9001:2000, OHSAS 18001:1999 and ISO 14001:2004 company and conduct its business through an established Quality System. AFCONS has a commendable record in terms of safety at their various project sites and has received a number of awards as well as appreciation letters from their clients.
1959 - Born as Rodio Hazarat Co, a partnership between Rodio Foundation, Switzerland and Hazarat & Co., India 1976 - Consequent to the exit of Rodio Foundation Engineers and Hazarat & Co, renamed as Asia Foundations and Construction Limited wherein from a partnership it became a closely held private limited Company with equity shares distributed to the employees 1977 - Became a deemed public limited Company 1993 - Shipping Credit and Investment Corporation of India (SCICI) became a 20% shareholder, which shareholding was transferred to ICICI pursuant to the merger of SCICI with ICICI 1997 - Became a full-fledged public limited Company by the name of “Afcons Infrastructure Limited”. In 1998, ICICI subscribed to further shares in the Company, which made ICICI the single largest shareholder with 47.37% equity stake in the Company. 2000 - Shapoorji Pallonji Group acquired 53.96% shareholding in the Company in 2000 where 47.37% was acquired from ICICI Ltd. and 6.59% was acquired from the Hazarat family.
AWARDS AND CERTIFICATES
Sr. No. 1.
Details Reliance Industries Ltd: awarded Afcons with safety award for construction of Jetty at Kakinada Bureau Veritas awarded 18001: 1999 and 14001: 2004 Certifications for Construction of elevated viaduct for DMRC in 2006. National Safety Council of India awarded the “Safety Award 2005” for Sone Bridge, Bihar constructed for East Central Railway. Association of Consulting Civil Engineers (India) awarded AFCONS with “Sarvamangala Award 2002” for excellence in Construction in Civil Engineering for Construction of Bandra Worli Outfall Project, Mumbai. Ishikawajima-Harima Heavy Industries Co. Ltd awarded AFCONS with the Safety Award for LNG Tank at Dahej-Gujarat in 2001. Airoli Bridge, New Mumbai was awarded ACCE SOM DUTT Award "Excellence in Construction of Transportation Project" in the year 2001 by Association of Consulting Civil Engineering (India), Bangalore. Tankers Berth Jetty Trestle for RPL, Jamnagar was awarded ACCE FOSROC Award for Effective use of construction chemicals in Civil Engineering Project in the year 2001 by Association of Consulting Civil Engineering (India), Bangalore.
Details Airoli Bridge, New Mumbai won the first prize Award in the competition for 6th Most outstanding Bridge National Awards 1999 - Category I by Indian Institute of Bridge Engineers. Airoli Bridge, New Mumbai was awarded ICI-MC-Banchemie Award for the Best concrete structure Award in the year 1999 by Indian Concrete Institute. Mandovi Bridge, Goa was awarded THIRD prize in the competition for Most outstanding Bridge National Awards 1995 Category II by Indian Institute of Bridge Engineers in the year 1995. Sharavati Bridge at Honnavar was awarded SECOND prize in the competition for Most outstanding Bridge National Awards 1995 Category I by Indian Institute of Bridge Engineers in the year 1995. Railway Bridge across Thane Creek Mankhurd Belapur Railway Project was awarded the FIRST prize in the competition for Most Outstanding concrete structure in India 1991 by Maharashtra Indian Chamber of American Concrete Institute. Worli & Bandra Marine Outfalls was awarded for the Most Outstanding Concrete Structure of India - 1997 (under Category I) by Maharashtra India Chapter of American Concrete Institute.
Afcons has business alliances with many multinational organizations like:
Ishikawajima-harima Heavy Inds. Ltd, Japan Bechtel Inc., USA Diamond Offshore, USA Ultra, Korea PerAarselfl, Denmark Kajima Corporation, Japan Oman Shapoorji, Oman Al Saeed, Yemen Daelim Industrial Co, Ltd. Korea Walter Mining PTY Ltd., Australia JSC OGCC, KazstroyService Pauling Plc. U.K Dyckerchoff Widmann Ag. Germany Alfred Mcapline U.S.A
PROJECTS AND SERVICES
AFCONS has been in operation for the last 49 years in the area of civil construction, which includes various activities.
I] BRIDGES, FLYOVERS AND VIADUCTS Major projects in Progress
1.Design and Construction of Special Bridge across river Chenab on Katra Laole section of Udhampur - Srinagar - Baramulla Rail Link Project for KRCl. 2.Construction of New Bridge No.531 over river Sone between Sone Nagar and Dehrion Sone East Central Railway. 3. Design and Construction of Six lane Cable Stayed Railway Over Bridge In Nagpur MSRDC. 4. Construction of viaduct of 5.222 km (approx) and 4 stations on Vishwavidyalaya - Jahangirpuri corridor of MRTS Phase – II for DMRC. 5. Part Design & Construction of Elevated Viaduct & Structural work of 3 Elevated Stations for DMRC. 6. Construction of 3 - Level Grade Separator at Crossing of NH - 24 and Road No. 56 at Ghazipur on NH – 24 for PWD Delhi. 7. Corridor Improvement for Outer Ring Road from IIT Gate to NH-8 Intersection for PWD Delhi. 8. Construction of Grade Separator at Rajaram Kohli Marg & Shastri Nagar Intersection for PWD Delhi.. 9. Rail Connectivity from Idappalli to ICTT for Rail Vikas Nigam Limited, New Delhi
II] MARINE WORKS
AFCONS entered into the field of marine construction way back in the year 1963 and have executed more than 150 marine structures all along the Indian coastline. The structures include all types of jetties, wharves, slipways, breakwater, dry docks, intake/outfall structures, etc. For all marine constructions, floating barges and pontoons are required. AFCONS has several conventional barges of varying capacity and more of these were built indigenously by AFCONS. AFCONS have also designed and fabricated special purpose built barges giving them tremendous flexibility in construction Some of the Major Marine Projects constructed by AFCONS are highlighted below: 1.Oil Berth at Vizag for Visakhapatnam Port Trust. 2.Building Dock Coupling at Vizag for Hindustan Shipyard Limited, 3.New Crude Oil Berth at Mangalore for NMPT. 4.Oil Terminal at Pirpau for Bombay Port Trust. 5.Extension of North & South Breakwater at New Mangalore.
Major Projects in progress
1.Complete project management & execution work for Intake Structure, Submarine Pipeline, effluent disposal & low head pump house for Gujarat Heavy Chemicals Ltd. 2.Construction of Container yard at Pipavav Port for Gujarat Pipavav Port Ltd. 3.Construction of Oil Jetty for Mauritius Port Authority. 4.Construction of Breakwater for FINOLEX Industries Ltd. 5.Construction of Jetty modification - Zero point to New Riser platform, Jamnagar for Reliance Industries Ltd.
III] ROADS CONSTRUCTION
AFCONS have executed more than 2000 lane Kms of road works/expressways projects in India funded by World Bank/Asian Development Bank/National Highways Authority of India and the work has been executed under the supervision of reputed International Consultants. Presently, AFCONS are executing total length of 676 lane Kms of National Highway projects, which are part of the Golden Quadrilaterial/North South Corridor Project for National Highway Authority of India, and all these projects are nearing completion. AFCONS have also been recently awarded four-laning work of Ullunderpet-Padallur Section of total length of 47 Kms by Trichy Toll way Pvt.Ltd., total cost of which is to the tune of Rs.3145 Millions. The details of some of the road works executed by them during the last 10 years are highlighted below: 1.Panagarh-Moregram Road in West Bengal (Package: S8, S9, S10 & S11) of total length of 300 lane Km. 2.National Highway-45 in Chennai of total length of 160 lane Km. 3.National Highway-1 in Punjab for total length of 288 lane Km. 4.East coast Roads in Chennai for total length of 318 lane Km. 5.National Highway Project in Orissa for a total length of 112 lane Km. 6.State Highway Project in Andhra Pradesh for a total length of 320 lane Km.
Major Projects in progress
1.Four-laning Haveri-Hubli section of NH-4 in the state of Karnataka Contract of length 256 lane Km 2.6 - Laning of Hyderabad Bangalore section of NH-7 in Karnataka of length 185.12 lane Km
3.Rehabilitation of existing 2-lane carriageway of Poonamalee-Kanchipuram section of NH-4 of length 224 lane Km 4.Rehabilation of Round from Kallubavale cross to Harihara, Bellary and Devanagers Dist of length 107.87 lane Km
IV] GENERAL CIVIL ENGINEERING WORKS AND INDUSTRIAL STRUCTURES INCLUDING POWER PROJECT
Besides marine, bridges and roads, Afcons has also carried out general civil engineering works including industrial buildings such as workshop, dry dock complexes, cooling water pump houses, Shopping Malls for Piramal now popularly known as "CROSSROADS" and the work of Turbine Buildings, Tunnels/Trenches, D.M. Plants and associated civil works for Nuclear Power Corporation. Afcons also carried various civil works for Reliance for their Jamnagar Refinery Complex, which included industrial building, Intake Channel, Culvert, Compound Wall, Effluent Treatment and Outfall. Recently, Afcons has also completed Two Nos 14000 cum capacity LNG Tanks, 80 m dia and 40 m height for Ishikawajima Harima Heavy Industries Co., Japan for LNG Petronet project at Dahej. This was executed ahead of time schedule and to the complete satisfaction of client. Some of the major civil engineering projects carried out by Afcons are highlighted below 1.Construction of workshops "A" "B" and Bldg "D1" for Mazgaon Dock Ltd 2.Construction of workshop "C" including covered Dry Dock and Bldg, "D2" for Mazgaon Dock Ltd 3.North Dry Dock at Visakhapatnam - Diaphragm Wall & Civil work phase - I. for Director General Project Visakhapatnam 4.Construction of covered Building Dock Complex at Visakhapatnam for Hindustan shipyard Ltd. 5.Building of Special Berthing facilities at Visakhapatnam for Director General Naval Project Visakhapatnam
Major Projects in progress
1.Construction of main civil works of desilting arrangement for KolDam Hydro-electrical Project for NTPC. 2.Construction of marine, civil and pipeline works, Jamnagar for Reliance Infrastructure Ltd. 3.Design and Construction of Cut & Cover Tunnel Including Switchover Ramps and One Underground Station in Airport Area, for DMRC. 4.Site Grading Works at Kochi LNG Terminal, Kerala for M/s Petronet LNG Limited. 5.Construction of 2Nos LNG Storage Tanks at Kochi for IHI Corporation, Japan. 6.Construction of 9 Sheds at Pipavav Port for E complex Pvt. Ltd 7.Fabrication of 2 Nos. 600 Tonne Goliath Cranes for Pipavav Shipyard Ltd. 8.Civil Works at Kakinada for Reliance Industries Limited.
Seeking newer horizons, Afcons also entered into laying of land and submarine pipelines. The company executed two and half KM long pipeline across the Thane Creek for HPCL and NOCIL. A major feature of this was the use of 200 Tonne capacity linear winch for laying the pipe by bottom pull method. Afcons has executed in excess of 7500m of offshore Pipeline & in excess of 41000m of on Jetty / land pipeline. AFCONS is presently executing a major EPC contract for laying of cross country pipeline for ONGC in Assam and have decided to enter into the construction of Oil & Gas Pipeline in a big way.
Major Projects in progress
1.Modernisation of Marine Oil Terminal Berth J1 to J3 at Jawahar Dweep Mumbai for Mumbai Port Trust. 2.Crude Unloading Jetty & Associated Facilities onshore cross country pipeline refinery at Nagapattinum for CPCL. 3.Construction of intake & discharge structure for Dabhol Plant for M/s. Bechtel International Inc U.S.A. 4.Onshore Pipeline & Trestle Bridge at Visakhapatnam for HPCL. 5.Submarine Pipeline & Marine loading arms, Visakhapatnam for HPCL. 6.Fabrication & laying of effluent disposal conduit including concrete coating, corrosion protection coating & associated works for effluent pretreatement project at Uran for ONGC. 7.Submarine Oil pipeline across Thane Creek for NOCIL & HPCL.
Some of the other projects are in the following segments: - TUNNELS - INTAKE AND OUTFALL STRUCTURES. - OVERSEAS PROJECTS
RESOURCES AND INFRASTUCTURE
REINFORCE YOUR CAREER WITH A CONSTRUCTION GIANT AFCONS INFRASTRUCTURE LIMITED - “An ISO 9001-2000 Company” a pioneer in the construction field for over 5 decades having executed large and sophisticated civil engineering projects in India and abroad, primarily focusing on Marine works, bridges/flyovers, Roads, Highways, Power Projects, LNG tanks and large civil works.
In order to strengthen their team of highly skilled human resources, and man their projects at various sites all over India they invite dynamic Professionals with an impressive track record.
I] FOUNDATION EQUIPMENTS
Afcons Infrastructure Limited is engaged in various types of prestigious projects for National development. To execute these Projects as per schedule, they deploy varieties of equipment. To operate, maintain, repair and overhaul, they have competitive team in all levels. In addition to increase the quantity of equipments, there is a constant upgradation of technology. For example, from tripod piling system to crane mounted rigs to integrated piling rigs. Extensive use of imported Desander has brought in high saving in Bentonite installations and consumptions. Piling hammers also have been bought to drive steel piles.
Types of Foundation Equipments:
Integrated Piling Rigs Piling Hammers Vibro Hammer
II] MARINE EQUIPMENTS
They are equipped with several number of Barges, Pontoons and Jack Up Platforms to operate any difficult job on / off shore. Their varieties of equipments help them to undertake challenging assignments in marine structures like Pile Crushing, rock socketed piling in deep water, breakwater construction etc.
Types of Marine Equipments
III] ROAD EQUIPMENTS
The concept of integrated multi stage Crushing Plant has been introduced extensively in the road projects. There has been an addition of two Plants per annum. In the Plants also, there is an up gradation of Crushers from Jaw-Jaw to Jaw-Cone - Vertical Shaft Impactor. They have introduced a Furnace Oil, LD Oil Fired Aggregate and Bitumen Heating System as against conventional High Speed Diesel Fired System.
Types of Road Equipments
Asphalt Paver Hot Mix Plant Motor Grader Road rollers Dumper/Tipper Asphalt Finisher Kerb Maker Stone Crusher Kerb Cutting machine Dozer
IV] CONCRETE EQUIPMENTS
All mechanical weighing systems have been replaced by digital weighing system. This change has brought very precise design of concrete mixes (03 Nos. in 2001– 2002 and 03 Nos. in 2003-2004).
Types of Concrete Equipments
Tower Crane Concrete batching Plant Concrete Mixer
Concrete Pump Concrete Placer Boom Transit Mixer Concrete Cutter
V] MATERIAL HANDLING EQUIPMENTS
They have various capacities and varieties of material handling equipment like Cranes ranging from 8 MT Cap. to 150 MT Cap.
Types of Material Handling Equipments
Mobile Cranes Tower Cranes Barge Mounter Cranes Crawler Cranes
VI] EARTH MOVING EQUIPMENTS
They have all kinds of Earth Moving Equipments with all accessories like Excavators with Rock Breaker, Dozers with Rippers etc.
Types of Earth Moving Equipments
Excavator Dozer Loader Cum Excavator Front End Loader
VII] EXPLORATION AND DRILLING
They have exploration and investigation equipments suitable to rapid mobilization, explore and demobilize. There are several tailor made, in home developed equipments for specific client requirements.
Types of Exploration & Drilling
Air Compressor Pneumatic Jack Hammer Hand Drill Machine Pedestal Drill Machine Drifter
VIII] UTILITY EQUIPMENTS
They have following Utility Equipments which are very essential for the smooth going of our activity.
Types of Utility Equipments
Truck / Trailer Crane Generator Tipper / Dumper Water Pump Jeep / Bus
The policy of AFCONS INFRASTRUCTURE LIMITED is to conduct their construction business through an established Quality Management System, which aims to achieve Customer Satisfaction by providing goods and services to the stated expectation of their customers and in the process improving company's competencies and competitiveness. They shall achieve this through continual improvement of their business processes and effective human resource management. They value training and sharing of information at all levels with in the organization.
1. Enhancement of customer satisfaction. 2. Timely completion of projects. 3. Effective planning and monitoring system. 4. Effective human Resource Management. 5. Optimum utilization of resources. 6. Ensuring safe working practices.
Address: “AFCONS HOUSE” 16 Shah Industrial Estate, Veera Desai Road, Andheri (West), Azadnagar P.O., Mumbai - 400 053 INDIA Phone No:
+91 (22)-6677 3100 Ext 138 Fax No: +91 (22)-2673 0047/2673 1031 Website: www.afcons.com
OBJECTIVE OF THE STUDY
The overall study objective is to formulate a broad planning and development framework setting out guidelines and standards for more effective and comprehensive planning for KRA‟s at different levels of planning, based on which conceptual KRA Plans would be prepared for application and assessment of broad impacts and implementation mechanisms of the KRA planning proposals.
The Study aims to promote KRA planning in the plan making and development process and establish the prima facie feasibility of the KRA planning proposals to achieve the following objectives: 1.KRA‟s importance in organization as well as individual‟s growth. 2. Scope of KRA. 3. Ways of implementing KRA in organizations. 4. KRA‟s link with Performance Appraisal. 5. Role of HO/HR in the implementation of KRA.
ANALYSIS AND INTERPRETATION
It is actually not very easy to implement and practice KRA in organizations. It may be three small words Key Result Areas, but when it comes to studying, it is a very vital and a vast concept. Many of them think that KRA is a new concept. However, it is not so. KRA always existed, but it was given its due recognition much later. It is of so much importance that it can either make or break an organization. An organization‟s success and failure is determined by its KRA. An organization will fail to achieve its objectives if its KRA is not implemented correctly and carefully. There are many common queries and questions regarding KRA that comes to a person‟s mind, that are discussed in detail further.
AFCONS INFRASTRUCTURE LIMITED has implemented KRA in its organization to a certain extent. As it is into infrastructures, they have many sites. Moreover, for every site they have a Project Manager (PM). Now it is the duty of the PM to see to it that every individual working on the project has well understood his KRA. And for this the PM first should be clear about KRA. While implementing KRA, a very important thing is to set targets. However, in this organization, they say that targets should be set on a weekly basis because then it appears to be more realistic. Moreover, other advantage they feel of setting weekly targets is that employees know that they have only seven days; hence, they will strive to achieve that target. Still this organization has not been able to reach to that level where they intend to be. While analyzing their entire KRA approach, we found out that there are certain things that need to be changed. 1. Layman’s language: Their KRA book explains KRA in a bit difficult language. It must be in a total layman language. The reason for this is that it has to be understood by the PM, the engineers, the sectional heads, etc. Therefore, it should not contain any kind of business jargons. Employees at the HO and the HR department will understand business jargons. However, it will not be easy for the people at the site to grasp these terms. Hence, for them it should be in an extremely simple and easy language.
2. Last Planner Approach: They have a “Last Planner Approach” in their KRA which we feel will only incur additional costs. The work or the duty assigned to the last planner can also be done by the PM. 3. Remarks for failure: Incase of failures also remarks are equally important. Hence, in the KRA format, in the remark column, failures must also be reviewed, because it will give an idea to what extent KRA could not be achieved, or how much loss took place, etc. It gives a base for rectification.
4. Individual growth: In the previous report, very less scope is visible for individual growth. It emphasizes more on organizational development. 5. Format: In their previous report, the KRA format did not contain the two vital aspects- “Tentative Date of completion” and “Review Date”. After analyzing the above loopholes, a modified KRA Report is prepared which is discussed further in detail.
1.1 KRA: It refers to areas of outcomes or outputs for which a role is responsible. It specifies goals, targets of each employee, which they are supposed to achieve in a given period. It is a self-improvement exercise, which helps, in organizational development. It fosters value addition for the employees as well as the organization. Basically, each employee has 4-5 KRA‟s. An
employee‟s work is different from his KRA‟s. KRA focuses on the result & not the day-to-day activities. KRA's are the set of activities on which performances are rated.
1.2 KPI: KPI‟s are used to evaluate how well you have achieved your KRA.The evaluation is done by comparing the existing performance with the standards kept during the process. It is a process or an operational activity. Just like in a computer, we have the Input, Process & the Output, similarly, KRA is the Input, Target is the Output & KPI is the process between KRA & Target. As the name itself suggests, it indicates what the Target should be. This can be explained with the following table: KRA Employee retention Training & Development Teamwork KPI Low Attrition rate TARGET Promotion/ Increment/ Delegation 20000 man hours
To train each & every employee in the organization By increase in turnover, Completion of activity less delay in execution. by due date.
It is an aim or a desired result which one strives to achieve. These are the tools to tell how to achieve your KRA as per the desired standards. Goals should be challenging, time-bound & measurable. They should be aligned with Mission, Vision, KRAs & KPIs. Every individual & organization have their own specific goals. 2.1 Organizational goals: These include the desired result, which an organization strives to achieve through the implementation of KRA.
-To create an atmosphere of “TOTAL SATISFACTION” - To be `Billion Dollar Company by 2011` - Stretched Targets & Goals - To use it as a supportive tool in Performance Appraisal - High Level of Interactive Communication - Incentive Rewards and Recognition - Creating Afcons as the Ultimate Brands in the Construction Industry 2.2 Individual goals: These include the expectation from an Individual to achieve the desired result. - Involvement and Commitment - Ability to take on stretch targets - Ability to balance Individual aspirations with the Organizational needs. - Ability to take responsibility for results - Finally above all is the Honesty and Integrity in everything we do.
They are an objective or result towards which efforts are directed.
3.1 Monitoring Targets:
While fixing up the targets, the individual staff should eschew “Fear of Failure” since „the KRA at present is not a rewarding or punishment exercise‟ The targets therefore should be challenging though reachable as would be clear from the table given below. Target achievement 100% & above 90% 80% Below 80% Indicates Incorrect judgment of resources, KRA to be corrected. Excellent, since target was a challenging one Good Reasons to be sorted out for correction.
4. KRA Methodology 4.1. Achievement: Achievement is a process or fact of achieving your KRA. 4.2. Scope of KRA: 1] Self-improvement. 2] Overall development of the organization. 3] Specification of goals and targets. 4] Fosters innovation. 5] Enhances accountability, responsibility and dedication.
4.3 Importance of KRA: 1] Helps individual & the organization to grow and develop.
2] Inculcates self-confidence & organizational commitment within individual 3] Keeps individual and the organization focused. 4] Helps to survive in competitive business world. 4.4. Period of KRA: KRA should be preferably written for the entire financial year. In addition, if this is not possible for any reasons, it should be written for the maximum time possible. 4.5 Change of KRA: KRA once written & approved by the Project Manager (PM) can only be change if: - A revised programme for the work comes into existence due to any unavoidable circumstances. - There is a change of assignment of the individual in which case he will write out his new KRA to cater to the new assignment. - No KRA can be changed without the approval of the PM. 4.6 Approval: - All KRA‟s have to be approved by the Project Manager - The PM will not dictate the targets but the same will be arrived only after detailed mutual discussion with the employee. 4.7 Review: KRA should have a review by the PM or an assigned representative preferably on a particular date every month. KRA would be a “MEANINGLESS” exercise without the review by the PM. It is also expected that the HO would review the KRA’s at least once in three months through the coordinators or some other team by HO.
5. KRA Formation Process: STEP 1:
A] The employee has to identify the Project execution, its critical areas & working of Project Site. B] Get known/acquainted with his own job profile assigned by his PM/SM & working of his department. C] Find out the areas of concerns as well as of critical activities, which needs to be focused for better project execution. D] So in short, an employee studies the working of different departments in order to understand the functions & activities they perform. STEP 2: A] The employee formulates his KRA & aligns his activities according to the KRA. B] He discusses the same with his or her sectional head & finally with the PM. C] It is only after consulting them that the employee starts working on his KRA. D] Examples of KRA for various departments could be: HR Dept. - Employee retention, Training & Development. EXECUTION Dept. - Timely completion, Quality work. ADMINISTRATION Dept. Proper facilities to employees, less grievances. STEP 3 A] Once KRAs are streamlined properly then the next step would be to set KPI [Key Performance Indicators] & target. B] KPIs are used to evaluate how well you have achieved your KRA. The evaluation is done by comparing the existing performance with the standards kept during the process It is a process or an operational activity. Just like in a computer, we have the Input, Process & the Output, similarly, KRA is the Input, Target is the Output & KPI is the process between KRA & Target. As the name itself suggests, it indicates what the Target should be.
STEP 4 If the above activities are not up to the mark then revised, KRA will be prepared. Review meeting has to be conducted by the PM every month & he should see to it that the queries are solved. Six monthly reviews have to be undertaken by HR department to the HO.
6. Role of Project Manager in implementation of KRA:
1] Understanding the meaning of KRA: To initiate & implement the process, this step plays an important role. It involves the clarity of concept from employer‟s & the employee‟s point of view. 2] Major roles & responsibilities: Proper communication of the process & clarity of concept will help PM to understand his roles & responsibilities in a better way. His main task is to convey information regarding the KRA process to all his subordinates in such a manner that desired output is obtained. 3] Flow of information: It includes the mode of communication & the process to be used in passing on the information from top level to lower level & vice versa. This process is again a vital ingredient of the whole system & right mode of communication will certainly in effective implementation of the whole process.
The different modes can be: MODES
Verbal a. Face to Face
Non-Verbal a. PPT presentation
b. Handbooks c. Intranet d. Emails, etc.
The motive is to bring awareness among employees for the effective implementation of the process. 4] Final Approval: PM has to scrutinize all the KRA sheets submitted to him give his approval with necessary changes if required. 5] Evaluation: Most critical part of the process & to be taken very seriously by PM as it may help him to improve the performance of his team thereby contributing to the business. He can do GAP analysis simply by comparing the performance of an employee with the standards declared & then send the report to HO as per the KRA policies.
7. Role of Head Office in Implementation of KRA
1] Policy Formulation: The HO formulates the KRA policy specifying the time limit, areas to be covered & the results expected. 2] Communication of Information: The HO then communicates with the PM/employees at sites, about the process of implementing KRA on the sites. Communication should be clear and specific.
3] Promoting Training and Counseling: The HO initiates the training programme and counseling for such employees to increase their performance. If results are not achieved as per the targets decided, the HO initiates the training programme for such employees. The training is imparted to fill the GAP between the expected and current performance. 4] Hub for Database:
After receiving the dully-filled KRA, forms from the sites all the details are kept in the records for future reference. 5] Reviewing the report and KRA: Once the KRA is signed and approved by the PM, then the same is submitted to SBU Head (H.O) for a final approval and then it is submitted to HRD for review purpose. 6] Resolving Queries/Grievances: If any queries regarding the KRA system are not clarified at the sites then it can be forwarded to the HRD.
8. KRA Linked to Performance Appraisal
Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality,quantity,cost and time) KRA plays a major role in determining Performance Appraisal. It is based on the accomplishment of the employee‟s KRA that his PM decides his Performance Appraisal. It helps the PM in knowing the grounds wherein the performance is to be judged. Performance can be appraised in various ways such as Promotion, Increment, Transfers, etc. PROCESS: 1] Employee‟s KRA is decided: Here the employee comes to know about his KRA, which is decided in consultation with his PM. He then starts working on it. 2] Communication with various departments: The employee identifies the departments, which are related to his job. He then finds the link between that department & his KRA. He communicates with that department accordingly & undertakes activities concerned with the accomplishment of his KRA. 3] Performing his task: After having a thorough knowledge of the departments concerned with his KRA & the activities to be followed, he starts performing his tasks, which is aimed at his KRA. However, when he is performing his task, the PM on the other hand keeps a check over his activities via weekly & monthly reports.
4] Achievement of KRA: The employee strives to achieve his KRA within a specified time limit because time management is a very important factor in KRA. 5] Preparation & submission of Report: After duly conducting his duties & accomplishing his KRA, he prepares a report on it & submits the same to the PM. 6] Evaluation of the report: The PM evaluates the report given by the employee based on the employee‟s personal development & the contribution that he has made towards the growth of the organization. 7] Performance Appraisal: If the output of the employee is good i.e. around 80-90 %, then the PM considers the aspect of Performance Appraisal of the employee. Moreover, if it is below 80%, the he will sort out reasons for correction. Performance Appraisal helps the employee to get motivated and work better in future.
Afcons Infrastructure Ltd. KRA FORMAT YEAR 2008-09
Name: Grade: Date of Joining:
Designation: Division: Work Location:
Department: Reporting to: Period:
Sr. No .
Tentative Date for completion
FREQUENTLY ASKED QUESTIONS FOR KRA
1.What does KRA mean? A: The full form is Key Result Area. It simply means the result or the outcome for which a job is responsible. It focuses on the result & not on day-to-day activities. 2.Why is it so much important?
A: KRA is important for both an individual & an organization. It leads to the success of the organization. It helps in planning & setting the goals & targets of the organization & that too with a specified time limit, based on which an organization can achieve its objectives. In addition, it leads to profit maximization & helps in cost cutting. 3.But, previously even without KRA organization achieved success, then why should it be followed now? A: KRA always existed. It so happened that it was not recognized previously & now it is. If KRA is identified, it will help in proper planning of targets, policies, etc which will lead to achieving the objectives in a given time period, thereby leading to success. It also teaches how to manage time. For instance, KRA is timely completion of a project, then we set a target to complete it in 3 months. In this way bearing the time factor in mind, we strive to complete the project & in this manner, we learn time management, which is an important factor again. Also to survive in today‟s competitive business world it is a constraint that can lead to competitive edge over our customers if it is followed perfectly. 4.But an organization achieves success if its day-to-day activities are also performed well. Then how can KRA be important if it does not focus on day-to-day activities & only result? A: It is true that KRA focuses on the result. However, these results are aligned with the day-to-day activities. In accordance with the KRA, the dayto-day activities are decided & KRA is thus achieved. 5.How does it benefit an employee? A: It leads to overall development of an employee personally as well as professionally. It enhances the overall effectiveness of an individual. For instance, if I tell you that we have to empower or complete an activity & that is your KRA & you have to take up the responsibility of it- you have to decide everything on it & come up with it. Now this will bring out the level of confidence in you and also your potential & creativity to work towards your KRA. And you will achieve it in a better manner. 6.Is employee’s KRA decided only by an organization? A: No. Even employees can decide what their KRA should be. However, it should always be consulted with your superior & taken up. The only reason being your KRA should always be in synchronization with the organization‟s goal. It should not be only for your development. It should
always be taken by keeping the organization in mind. And secondly, your boss may have some best KRA for you at times. Therefore, by discussing with your boss you can decide your KRA. 7.Does every department in an Organization have their own respective KRA’s? A: Yes, KRA differs for every department. For finance, it is cost cutting. For marketing it is market penetration, competitive advantage etc. For HR it is Employee retention, Training & Development, Performance Appraisal etc. KRA of employee depends on the function of his dept & his job profile. 8.What are the chances of change in KRA? And what is to be done when KRA is changed? A: KRA changes in the following cases: - Change of site: When an employee is transferred from one site to another, his KRA changes. - Change of job profile: This is the case when the job profile of employee changes in the same site. Whichever the case is, he has to consult his PM for his change in KRA. 9.Does it guarantee success? A: In order to achieve success, a KRA has to be well defined. It has to be correctly identified & implemented in a time limit. Identifying & implementing it is difficult, but not impossible. If one can Identify & implement it perfectly, then success is just some steps away.
It refers to areas of outcomes or outputs for which a role is responsible. It specifies goals, targets of each employee, which they are supposed to achieve in a given period. It is a self-improvement exercise, which helps, in organizational development.
KRA Employee retention Training & Development Teamwork
KPI Low Attrition rate
TARGET Promotion/ Increment/ Delegation 20000 man hours
To train each & every employee in the organization By increase in turnover, Completion of activity less delay in execution. by due date.
Goals are an aim or a desired result which one strives to achieve. These are the tools to tell how to achieve your KRA as per the desired standards. Goals should be challenging, time-bound & measurable. Goals can be focused on individual as well as organisational development. Targets are an objective or result towards which efforts are directed. They are monitored on the percentage of completion of KRA‟s. KRA process can be undertaken in the following ways: STEP 1: The employee has to identify the Project execution, its critical areas & working of Project Site. STEP 2: The employee formulates his KRA & aligns his activities according to the KRA. STEP 3 Once KRAs are streamlined properly then the next step would be to set KPI [Key Performance Indicators] & target. STEP 4 If the above activities are not up to the mark then revised, KRA will be prepared. However, the Project Manager plays a vital role in the implementation of KRA. It is described as follows: 1] Understanding the meaning of KRA 2] Major roles & responsibilities 3] Flow of information
4] Final Approval 5] Evaluation. The Role of Head Office in Implementation of KRA is listed below: 1] Policy Formulation 2] Communication of Information 3] Promoting Training and Counseling 4] Hub for Database 5] Reviewing the report and KRA 6] Resolving Queries/Grievances KRA can also be linked to Performance Appraisal in the following way: Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality,quantity,cost and time) KRA plays a major role in determining Performance Appraisal. It is based on the accomplishment of the employee‟s KRA that his PM decides his Performance Appraisal. It helps the PM in knowing the grounds wherein the performance is to be judged. Performance can be appraised in various ways such as Promotion, Increment, Transfers, etc. PROCESS: 1] Employee‟s KRA is decided: 2] Communication with various departments: 3] Performing his task: 4] Achievement of KRA: 5] Preparation & submission of Report: 6] Evaluation of the report: 7] Performance Appraisal:
After analyzing the importance of KRA, our suggestion to this organization on this concept would be: 1.Strict implementation of KRA on site as well as company premises. 2.Remove the last planner approach
3.KRA should not be mixed with Task Force like before 4.When the company gains profit due to target achieved by employees on site, part of that profit should be distributed to those employees, which would motivate them. 5. PM should be made responsible for the accomplishment of KRA‟s 6.Making the employees on site aware of the importance of KRA in more convincing manner, by focusing on his individual growth. 7. Filling the KRA format honestly and accurately verifying the same.
Past KRA report of AFCONS INFRASTRUCTURE LTD. Websites: www.citehr.com www.google.com