A PROJECT REPORT ON

Human Resource Management in Steel Industries

TATA STEEL LTD -JAMSHEDPUR‖
[Submitted in partial fulfillment]

[M.BA Third Semester]

Summer Internship Program
As a part of the Curriculum of

MASTER OF BUSINESS ADMINISTRATION [MBA]

From,

KOLHAN UNIVEERSITY –CHAIBASA (Jharkhand)

Project submitted by
Premchand Kumar jouriyar

University registration No- KU1601327

University Roll No- 170709596978

Master of Business Administration,M.B.A (HR), 2016-18.

1
 ACKNOWLEDGEMENT

At the prime outset we owe are sincere gratitude t o the management and allied discipline of TATA
STEEL Jamshedpur for giving an opportunity to un dergo the summer training The project report is
inspired from the annual reports of the company market survey and information provided by the
employees in required fields Whom I should certainly acknowledge as without their contribution this
report would not have been appropriate

I also sincerely acknowledge the full co&operation and owe my enriching experience and the entire
learning process to my project guides Mr ﾤ Amit Kr ﾤ Mehata Mr ﾤ Sandeep Kr ﾤ Jaiswal and Mr
ﾤ Vivek Kr ﾤ Singh and special thanks to Dr ﾤ B ﾤ N ﾤ Prasad %Principal' Jamshedpur worker’s
college +Jamshedpur without their help and guidance is would not have been possible to
complete the project successfully His constant guidance and help made my project work easier

We specially thank Mrs ﾤ Kolka Dutta Manager %HR.IR' Lime Plant Dept Tata Steel Ltd for his

valuable guidance We should appreciate and sincerely acknowledge suggestions from Mr ﾤ Avijit

Bose Head and Lime Plant Dept Tata Steel who has always be en my source of incessant

motivation and has always extended his unstinted support in the making of this project We also

thank Mr ﾤ Ajay Kumar Singh personnel TMDC for his kind attention to all our problems and

queries during the research period

Finally I would like to thank my family for their lifelong love and support I especially owe my
sincere gratitude much to my parents and also the other faculty members of our college for offering
their invaluable experience to help me Without them this work could not have been computed

2
 PREFACE

We want to express our gratitude to Tata Steel Jamshedpur for the experience and Practical
knowledge It was the first time when we went to the market not to do anything but to do a survey
to know the Market Potential and HR .IR practices The main requirement was to interact with
Worker and know the management functions

The project consists of company details market res earch data collection method and questionnaire
and data analysis We hope that our findings and recommendations would help the company to
analyses its strategy in comparison to its competitors

We are obliged to work in such an esteemed organization and have tried our best to align our
objective with the company’s goal

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 EXECUTIVE SUMMARY

TATA Steel is the leading Steel producer of HR sheet CR sheet structural steel construction steel

commercial Tubes and many more product in th e market with a well&established national and

international network It delivers quality and enjoys enormous brand equity It faces threat from

competitors who try to turn the market to their side by scoring over the points where TATA STEEL

product falls short Therefore we HR student as management trainees in TATA STEEL have

undertaken a project to find out how to increase t he potential productivity and efficiency of an

employee

TATA STEEL&Jamshedpur2 & Our main objectives are2

4 To find out and compare the Work environment at major companies in steel Producer

5 To measure the threat of substitution from another segment

6 To find out the critical factors that might result in loss of market share and brand equity

The sole purpose of our research work is to benefit the TATA STEEL in following ways2

i Critical factors of HR once identified can be worked upon so as to eradicate the risk of losing
Company HR policies

5 Working on the problematic areas would also save its reputation in the market

6 Knowledge about strengths and weaknesses of the competitors from the same segment would
help the company build its HR strategies accordingly so as to maintain or increase its Goal and
company policies

9 Realizing opportunities as new working enviro nment development substitution from the segment
This report is precise and purely specific to its purpose targeted to enable Managers to take
relevant decisions

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 TABLE OF CONTENTS
Chapter No. Particulars Page
No.
1.0 Human Resource Management 7
1.1 Meaning of Human Resource Management 8-9
1
1.2 Characteristics of Human Resource Management 10-12

1.3 Need and Importance of Human Resource 13-16

Management.
2.0 Human Resource Management in Tata Steel Ltd. 17
( Overview Of Tata Steel Ltd)
2.1History, vision and Mission Of Tata Steel Ltd. 18
2
2.2 Business Divisions Of The Tata Steel Ltd. 19-28
2.3 HRM Background and Practices. 29-31
2.4 HR Practices and Methods. 31-32
3.0 Job analysis, Job Design and Job Evolution. 33
3 3.1 Job analysis 33-39
3.2 Job Design 40-48
3.3 Job Evolution. 49-50
4.0 Human Resource Planning 51
4
4.1. Recruitment: 52
4.2 Selection 52
4.3Placement 53
4.4 Induction & orientation 53
5.0 Human Resource Development 54-56
5.1 Management Development: 56
5 5.2. Career Planning & Development: 57-59
5.3. Organizational Development: 59
6.0 Compensations Management 60
6
6.1. Compensation 61-62
6.2. Compensations and Benefits 63-64
7 7.0 Human Relations 65-66
8.0 Human Resource Management in Steel Industries. 67
5
8 8.1. HRM in small private steel industries 68
8.2. HRM in Public Sector steel industries 69
9.1. Role of Human Resource Management 70-71
9 9.2. Responsibilities of Human Resource Management: 72
10 10.0 Employee Relations In Tata steel. 73-74
11 11.0 Current HR Challenges Faced by Tata Steel Ltd. 75-77
12 12.0 HR Development in Tata Steel Ltd. 78
12.1 79-82
12.2 83-84
12.3 85-90
13 13.0 HRM Issue in Tata Steel Ltd. 91
14.0 Leave and Support Scheme Run by HRM Tata Steel 92
Ltd.
14 14.1 Types of Leaves. 92-95
14.2 Support Scheme Organise By Tata Steel Ltd. 95-105
15.0 Organizational Profile of Tata Steel Ltd. 106-108
15 15.1 Ownership Structure (Tata Steel) 109
15.2 Leadership Structure 110
15.3 Key performance indicators (Tata Steel India) 111-112
16.0 Training and Development Function in Tata Steel Ltd.(
16 Analysis Of Secondary Data) 113

17 17.0 Risk matrix of Tata steel Ltd-Jamshedpur. 114-115

18 18.1 BCG Matrix Analysis Of Tata Steel Ltd 116-117

18.2 BCG Matrix Analysis Of Tata Group 118

18.3 SWOT Analysis Of Tata steel Ltd. 119

19 19.0 Key Finding. 120

19.1 Suggestion and Recommendations. 121

19.2 Limitation Of the Study. 122

19.3 Conclusion. 123

6
 CHAPTER&4

4: Human Resource Management

Human Resource Management or Personnel management is the activity of Managing personnel

usually employees

In any organization managing personnel is the proc ess of making sure the employees not the
customers are as productive as they can be This can include hiring firing or transferring people
to;from jobs they can do most productively

Why name 2Human Resource Management2<

Human3 Refers to the skilled workforce in the organisation

Resource2 Refers to limited availability or scarceness

Management3 Refers how to optimize and make best use of such limited and a scarce
resource so as to meet the ordination goals and objectives

Altogether human resource management is the proces s of proper and maximise utilisation of
available limited skilled workforce The core purpose of the human resource management is to
make efficient use of existing human resource in the organisation The Best example at present
situation is construction industry has been facing serious shortage of skilled workforce It is
expected to triple in the next decade from the present 6: per cent will negatively impact the overall
productivity of the sector warn industry e xperts

7
44 Meaning of Human Resource Management2&

A business unit needs employees to look after different activities This is Called manpower or
Human resource Such human resource needs to be developed fully so that it will make positive
Contribution for the progress and prosperity of a business unit For this Systematic development
and management of human resources is necessary Human Resource Management HRM deals
with

a Training

b Self&development

c Promotions

d Performance appraisal of manpower recruited in an organization

8
HRM is an organized learning experience aimed at matching the organizational need for career
growth and development It is a process involving series of learning activities designed to acquire
desired level of competence among employees HRM is a continuous process and it needs money
Such investment creates a team of efficient skille d and trained manpower which brings success
and stability to a business unit HRM programmers offer long term benefits to an organization

Every organisations> desire is to have skilled and competent people to make their organisation
more effective than their competitors Humans are very important assets for the organisation rather
than land and buildings without employees humans no activity in the organisation can be done
Machines are meant to to produce more goods with good quality but they should get operated by
the human only

Definitions3

Many great scholars had defined human resource management in different ways and with different
words but the core meaning of the human resource m anagement deals with how to manage
people or employees in the organisation

Edwin Flippo defines& HRM as “planning organizing directing controlling of procurement

development compensation integration maintenance and separation of human resources to the end
that individual organizational and social obje ctives are achieved”

The National Institute of Personal Management %NIPM ' of India has defined human

resources A personal management as “that part of management which is concerned with people at
work and with their relationship within an enterprise Its aim is to bring together and develop into an
effective organization of the men and women who make up enterprise and having regard for the
well A being of the individuals and of working groups to enable them to make their best
contribution to its success”

9
According to Decenzo and Robbins “HRM is concerned with the people dimension” in

management Since every organization is made up of people acquiring their services developing

their skills motivating them to higher levels of p erformance and ensuring that they continue to

maintain their commitment to the organization is essential to achieve organsational objectives This

is true regardless of the type of organization A g overnment business education health or social

action”

10
45 Characteristics of Human Resource Management2

i ﾤ Upgrading Manpower2&

HRM is basically concerned with the upgrading of manpower working in an Organization This
leads to improvement in the individual performance of an employee and also corresponding
Improvement in the organizational performance

ii ﾤ Stress on Training2

HRM includes various schemes arranged for providing education guidance Training and
Opportunities to learn and develop employees of all categories and working in different
Departments There is an integrated use of sub&systems training career developments
Organizational development in the HRM programme

iii ﾤ Attention to learning and career development2&

Learning self&development career developments are possible through HRM Programs These are
the core areas of HRM Career development is possible through joining Training courses Reading
books and periodicals Learning and career development raise the capacity of Employees to work
at highest levels They are given higher positions with monetary benefits

IV Organizational Development2&

HRM includes organizational development which inc ludes effective Communication within the
Organization coordination of different activities elimination of Conflicts of different types and

Creation of orderly atmosphere in the whole organization

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V ﾤ Team Spirit2&

HRM is basically for developing team spirit in the whole organization For this departments and
levels of management are properly integrated Team spirit facilitates Orderly growth of the
Organization in the right direction

VI Huge Money spending by Management 2&

All companies invest huge money on HRM activities but such expenditure is absolutely essential
for survival in the present competitive business world HRM programs Create matured skilled and
efficient manpower which is a valuable asset of a business unit

VII Termination of Employment2&

Termination is an unpleasant part of any manager‘s job Employees Occasionally must be

terminated for breaking rules of failing to perform adequately

VIII Continuous Activity2&

HRM is rightly treated as a continuous activity due to new developments taking place regularly in
the business world For this on the job and off th e job training Programs are introduced from time&
to&time

IX Wide Scope2&

The scope of HRM programs is very vast It is multi&disciplinary in character Training and guidance
are given on different aspects of business management to enable managers to deal with complex
managerial problems and challenges

12
9 ﾤ: Need and Importance of Human Resource Management3;

A good HR department is critical to an employee&oriented productive workplace in which

employees are energized and engaged Here are the reasons why

• HR monitors the culture Some organizations say that HR owns the culture but as in all
other employee relations matters I recommend that the ownership is spread across all
employees

• HR owns the overall talent management processes In conjunction with other managers HR
leads the way in management development performance management succession
planning career paths and other aspects of talent management HR can>t do it alone and
relies heavily on managers and executive staff to help plan and execute the strategies
However HR has to bring new ideas and effective pr actices into the organization

• HR is responsible for the overall recruiting of a superior workforce Once again HR cannot
do it alone but must provide support to hiring managers who are also responsible for
recruiting a superior workforce HR must provide leadership training scheduling assistance
a systematic hiring process recruitment planning processes interview expertise
selection monitoring and more

• HR recommends market&based salaries and develops an overall strategic compensation

plan HR provides guidance to managers as they determine the salary ranges within their
organizations

• HR researches recommends and implements employee benefits programs that attract and
retain your best employees HR is also responsible for controlling costs and considering
various options before recommending adoption

• HR is responsible for recommending and instituting strategies for people and the
organization that further the attainment of the organization>s strategic goals If your

13
 organization is changing direction developing new products changing mission vision or
goals HR must lead the way with employee programs and processes

• HR makes sure that workplace activities events ce lebrations ceremonies field trips and
team building opportunities are occurring Other employees plan and implement the
activities with or without HR>s help but the HR le ader is generally responsible for
monitoring the budget and providing committee oversight

• HR advocates for employees who have issues or conflict with management and coaches
managers and executives who seek a more effective approach to working with particular
employees Not everyone loves each other but they need to develop effective working
relationships for contributions and productivity HR can help by knowing the players and
taking on the necessary role of advocate coach and ;or mediator

The importance of HR is easily overlooked in the busy day&to&day in the workplace but without

contributions in each of these areas the organizat ion would be less successful

14
i ﾤ To create stable labor force2&

HRM programmes are needed in order to create stable efficient skilled and matured manpower
required by an enterprise for the present and future period

ii ﾤ To update the quality of manpower2&

HRM activities are needed for updating the quality of manpower as per the growing and changing
needs of an enterprise This avoids managerial obsolescence Even the Vacancies at higher levels
can be filled in internally due to HRM programmes as they provide training and opportunities of
self&development to employees working at lower levels

iii ﾤ To develop strength for survival2&

HRM programmes are necessary for survival in the present competitive Marketing environment An
enterprise can face market competition only by improving quality reducing costs and avoiding
wastages All this is possible through HRM

iv To face challenges of technological changes2&

Technological changes are taking place rapidly in every area of business HRM programmes are
needed in order to absorb technological changes taking place with Speed In fact introduction of
new technology computers automation etc will no t be possible unless training is provided to the
manpower

v ﾤ To satisfy the demand of self&development of employees2&

HRM is needed to meet the needs of employees in regard to self&development and career
development aspirations Employees demand training facilities refresher courses Promotions and

15
transfers career guidance etc for their self&dev elopment HRM programmes are needed to fulfill
self&development and career development of employees

vi ﾤ To meet future manpower needs2&

HRM is needed to meet the future manpower needs of the organization Executives managers
supervisors leave the job or retire due to age factor Competent juniors must take their positions
HRM is needed in order to keep ready a team of competent managers as a second line of
defence

vii ﾤ To facilitate expansion and diversification2&

HRM activities are needed to meet the manpower requirements resulting from expansion and
diversification programmes undertaken at the enterprise level Attention should be given to HRM
much before the introduction of expansion programme

viii To utilize production capacity fully2 &

HRM is needed in order to use the available production capacity to the optimum level It provides
skilled manpower for this purpose

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 CHAPTER&5

5: HUMAN RESOURCE MANAGEMENT IN TATA STEEL LTD

OVERVIEW OF TATA STEEL LTD

Tata Steel Limited formerly Tata Iron and Steel Company Limited TISCO is an Indian multinational
steel&making company headquartered in Mumbai Maharashtra India and a subsidiary of the Tata
Group

It is one of the top steel producing companies globally with annual crude Steel deliveries of 56FF
million tons in FY4H and the second largest stee l company in India Measured by domestic
production with an annual capacity of 46 million tons after SAIL

Tata Steel has been ranked 5nd in 5:4H Responsible Business Rankings developed by IIM

Udaipur Tata Steel has manufacturing operations in 5I countries including Australia China India the

Netherlands Singapore Thailand and the United Kingdom and employs around F:J:: people Its

largest plant located in Jamshedpur Jh arkhand In 5::H Tata Steel acquired the UK& based steel

maker Company Corus Tata Steel was ranked 9FIth in the 5:49 Fortune Global J:: ranking of the

World’s biggest corporations It was the seventh most valuable Indian brand of 5:46 as per Brand

Finance

17
54 HISTORYVISION and MISSION OF TATA STEEL LTD

Established in 4K:H Tata Steel the flagship compa ny of the Tata group is the first integrated steel
plant in Asia and is now the world`s second most geographically diversified Steel producer and a
Fortune J:: Company Backed by 4:: glorious years of experience in Steel making Tata Steel is the
world’s Ith largest steel company with an existing annual crude Steel production capacity of 6:
Million Tons Per Annum MTPA Tata Steel has a balanced global presence in over J: developed
European and fast growing Asian markets with manuf acturing units in 5I countries

It was the vision of the founderM Jamsetji Nusserwanji Tata that on February 5H 4K:F the first
stake was driven into the soil of Sakchi His vision helped Tata Steel Overcome several periods of
adversity and strive to improve against all odds

VISION OF TATA STEEL LTD

We aspire to be the global steel industry benchmark for Value Creation and Corporate Citizenship

MISSION OF TATA STEEL LTD

Consistent with the vision and values of the founder Jamsetji Tata Tata Steel strives to strengthen
India’s industrial base through effective utilization of staff and materials The means envisaged to
achieve this are best technology and high productivity consistent with modern management
practices

Tata Steel recognizes that while honesty and integrity are essential ingredients of a strong and
stable enterprise profitability provides the main spark for economic activity

Overall the Company seeks to scale the heights of excellence in all it does in an atmosphere free
from fear and thereby reaffirms its faith in democ ratic values

18
=ﾤ= Business divisions of the company3;

a Bearings Division

Ever since the start of operations at the Kharagpur Facility Tata Bearings has been constantly

implementing new technology and improving systems and processes through innovations in the

field to deliver greater value to customers In the initial stages the technology was obtained from

M;s Societe Nouvelle de Roulements SNR & France through a technical collaboration but presently

all developments are carried out in&house The Division has state&of&the&art IT hardware with

ASP as the ERP platform for an online information system Manufactures ball bearings double row

selfAaligning bearings Magneto bearings clutc h release bearings and tapered roller bearings for

two wheelers fans Water pumps etc

The Bearings Division manufactures the following range of bearings under the brand name of Tata
Bearings2

• Ball Bearings

• Taper Roller Bearings

• Magneto Bearings

• Double Row Angular Contact Bearings

• Clutch Release Bearings

• Double Row Self Aligning Ball Bearings

• Hub Unit Bearings

19
b Ferro Alloys and Minerals Division

The Ferro Alloys and Minerals Division commonly kn own as FAMD is the largest non&steel
business unit of Tata Steel With chrome and manganese ore reserves in the mineral rich state of
Odisha FAMD has set up an integrated value chain commencing with mining beneficiation
production and sales of Ferro alloys It is also the leading manganese alloy producer in India and is
a leading supplier of dolomite and pyroxenite

Operates chrome mines and has units for Making Ferro chrome and Ferro manganese It is one of
the largest players in the global Ferro Chrome Market

c Agrico Division

Tata Agrico the oldest brand of Tata Steel is a p ioneer in superior quality agricultural implements

Since 4K5J it has been the leading manufacturer of handheld implements like hoes shovels sickles

crowbars pickaxes and hammers These impl ements cater to the needs of agriculture infrastructure

as well as mining sectors This traditional product range has now become even richer with the

addition of garden tools like secateurs c ultivators trowels bill hooks cane choppers hedge shears

and garden rake All Tata Agrico implements are guaranteed against manufacturing defects and are

distributed all over the country through a network of consignment agents and distributors Tata

Agrico is the first organized manufacturer in India of hand tools and implements for application in

agriculture

20
dTata Growth Shop TGS

Tata Steel Growth Shop TGS is a division of Tata Steel Ltd TGS is one of the largest designer and
manufacturer of Plants and Equipment’s in India The ISO2 K::4 and ISO2 49::4 certified massive
plant has general engineering manufacturin g fabrication machining heat treatment and NDT
facilities TGS designs manufactures and suppl ies high precision equipment for various industrial
sectors

Has designed developed manufactured erected and commissioned thousands of tonnes of

equipment ranging from overhead cranes to high Precision components including a rocket launch
pad for the Indian Space and Research Organization

e Tubes Division

Tata Pipes has played an important role in this transformation in India Tata Tues is the first
manufacturers of plumbing pipes in India leading to the modernization of the country The
increasing population scarcity of land and resourc es and people moving from individual houses to
multistory buildings has made Tata Pipes even more important in our lives as they are the true
carriers of life

Tata Pipes for the conveyance applications are mainly used for carrying liquids and low pressure
gases The biggest steel tube manufacturer with the largest market share in India it aspires to
strengthen its market presence by expanding and modernizing its Commercial and precision tube
manufacturing capacity

21
f Wire Division2

Producer of Prestressed Concrete strands used in construction of bridges high&rise buildings LNG
tanks nuclear reactors metro rail projects etcWe have had the opportunity to supply wires for many
iconic structures across the world including Bandra Worli Sea Link India Suvarnabhumi Airport
Thailand Changi Airport Terminal 6 Sing apore Delhi Metro Rail India Dubai Ski Dome UAE Darwin
LNG Tanks Australia Melbourne Cricket Ground Australia Cross Sea Bridge Japan Cross Ring
Expressway Macau and S henzheng Bay Great Bridge China

Product Range

Tata Steel Global Wires manufactures a wide range of wires catering to the needs of various
industry segments such as automobile infrastructur e power and general engineering Our products
are well established across the markets of Europe USA Middle East Asia Australasia South Asia
and Asia & Far East

In India Tata Wiron has world&class manufacturing facilities at Tarapur Mumbai Maharashtra
Pithampur Indore Madhya Pradesh and Jamshedpur A pioneer in the manufacture of steel wires in
India it produces coated and uncoated wires br anded as Tata Wiron The division also operates a
wholly owned subsidiary in Sri Lanka

22
Tata steel Subsidy Unit2&

4 Jamshedpur Utility . service company Limited JUSCO&

Holding Type A Subsidiary Holding N& 4::N

Town Services Division of Tata Steel JUSCO is a wh olly&owned subsidiary of Tata Steel with
expertise in integrated town management power dist ribution engineering procurement construction
real estate and operations and maint enance JUSCO focuses on enhancing the quality of life of the
residents of Jamshedpur through sustained capital investment and public& private partnership for
infrastructure development Jamshedpur today has among the highest per capita incomes in the
country and is rated among the best cities to live in by its residents

5 Tata Pigments Ltd

Holding Type A Subsidiary Holding N& 4::N

Tata Pigments Ltd is one of the largest producers of synthetic iron oxide pigments in India and the
only Indian manufacturer of this product with BIS certification TPL is the preferred supplier of
pigments to leading companies in industries such as paints building materials plastics rubber
goods paper and ink It is also the leading brand in India for flooring colours

6 Tata Steel alloys Ltd

Holding Type A Subsidiary Holding N& 4::N

TS Alloys has set up a ferro alloys plant at Anantapur Odisha with a capacity of JK9:: MT per
annum Presently the plant has two 4IJ submerged electric arc furnaces that commenced
commercial production in 5::H The plant is located on 496J acres of land

23
 9 Tata Steel Processing . Distribution Ltd TSPDL

Holding Type A Subsidiary Holding N& 4::N

Recognizing the tremendous business potential offered by the vast gap between steel producers’

offerings and the actual requirements of steel users Tata Steel formed a J:2J: joint venture in

4KKH with Ryerson Inc USA North America’s large st metal processor and distributor to promote a

steel service company named Tata Ryerson Limited The Company firmly established itself as the

dominant steel service company in India It became a wholly&owned subsidiary of Tata Steel in

5::K and acquired a new name Tata Steel P rocessing . Distribution Ltd from January 5:4:

J Adityapur Toll Bridge Co Ltd ATBCL

Holding Type A Subsidiary Holding N& FFJ:N

Adityapur Toll Bridge Co Ltd ATBCL is a Special Purpose Company promoted under PPP model
by Government of Jharkhand and Tata Steel Ltd It is a public company incorporated on March 4K
4KKI It is classified as Indian Non&government Company and is registered at Registrar of
Companies Jharkhand Its authorised share capital is Rupee sign 54:: crores and its paid up capital
is Rupee sign 5:6F crores Tata Steel be ing the major shareholder with HJN shares

6. The Tinplate Company of India Limited (TCIL)

Holding Type – Subsidiary Holding %- 74.96 %

The Tinplate Company of India Limited TCIL a subs idiary of Tata Steel Limited TSL was
incorporated in 4K5: and started its commercial production in 4K55 These are among the most
versatile packaging substrates used for packaging edible and non&edible products and are used

24
for its eco&friendly and superior properties vis&à&vis other packaging substrates such as glass
paper plastics aluminum etc

H Tayo Rolls Limited

Holding Type A Subsidiary Holding N& J9K4 N

Tayo Rolls Limited a Tata Enterprise and a subsidi ary of Tata Steel since 5::F was promoted in
4KIF by Tata Steel Limited and Yodogawa Steel Works Limited Japan and Nissho Iwai
Corporation now Sojitz Corporation Japan Tayo R olls Limited is a leading Roll manufacturer
headquartered in Jamshedpur India

F Tata Sponge Iron Limited TSIL

Holding Type A Subsidiary Holding N& J9J: N

Tata Sponge Iron Limited TSIL was conceptualised to put India’s first indigenous technology for

sponge iron manufacture on a commercial platform TSIL is considered a benchmark among the

coal&based sponge iron plants It is arguably the only debt&free dividend&paying sponge iron

company in India for the last 56 years It is also known for its exemplary environmental standards

in an industry otherwise infamous for pollution It was the first company to receive the integrated

certification of ISO&K::4 ISO 49::4 . OHSAS 4F::4 It is also the first DRI plant in the world to

achieve TPM certification in 5:45 It has received a number of state and national awards from the

government and industrial confederations and institutions in the fields of environment productivity

safety quality HR corporate governance etc

25
K Jamshedpur Continues Annealing And Processing Company PVT Ltd (CAPCPL

Holding Type A Subsidiary Holding N& J4:: N

CAPCPL is a joint venture between Tata Steel Limited J4N and Nippon Steel . Sumitomo Metal
Corporation NSSMC 9KN Its state&of&the&art tech nology caters exclusively to India’s growing
demand for cold rolled steels in the automotive segment It thus enables automotive OEMs to
address their strategic objective of increased localisation Located within Tata Steel’s Jamshedpur
Works the company has an installed capacity of I:: ::: TPA

4: TM International Logistics Limited

Holding Type A Subsidiary Holding N& J4:: N

TM International Logistics Limited was incorporated as a joint venture company between Tata
Steel and IQ Mar trade of Germany to provide cost&efficient port&related services With the vision
of being a reliable logistics service provider characterized by operational excellence TMILL’s wide
range of logistics services comprises port operations shipping freight forwarding customs house
agency inland logistics warehousing ship agency services and marine services

44 Tata Metaliks Ltd TML

Holding Type A Subsidiary Holding N& J::K N

Tata Metaliks Ltd TML is a listed company and subsidiary of Tata Steel holding J::KN Seventy
percent of its production is converted into foundry&grade pig iron while the remainder is
transformed into molten metal for value addition and converting into ductile iron pipes by its 4::N
subsidiary TMDIPL Both plants are located at Khar agpur West Bengal TML holds a leadership
position in the foundry grade pig iron market

26
45 Mjunction Services Limited

Holding Type A joint venture Holding N& J::: N

Kolkata&based m&junction Services Limited was incorporated in 5::4 as a J:2J: joint venture
between Tata Steel and SAIL Today m&junction is n ot only the world’s largest e&marketplace for
steel it also exists on a wide spectrum of B5B e&c ommerce services comprising e&selling e&
procurement e&finance e&retail loyalty solutions and knowledge services across diverse industry
verticals

46 S.T Mining Company Private Limited

Holding Type A Joint venture Holding N& J::: N

A J:2J: joint venture of SAIL and Tata Steel S.T M ining>s main objective is to work in the coking
coal and mineral space domestically and internationally The other objectives of the Company
include beneficiation of coal and minerals acquisi tion of international mining assets mining of other
minerals related to raw materials of steel and building on a competency to provide consultancy
services

49 Tata BlueScope Steel Ltd

Holding Type A Joint venture Holding N& J::: N

Tata BlueScope Steel Ltd is an equal joint venture between Tata Steel and BlueScope Steel The
joint venture was established in November 5::J to operate in the SAARC region South Asian
Association for Regional Cooperation The company has facilities in Chennai Jamshedpur Pune
and Bhiwadi Its Coated Steel Business Division and Building Products Division have developed
multiple brands that are leaders in their segments

27
4J Tata NYK Shipping Pvt Ltd

Holding Type A Joint venture Holding N& J::: N

Tata NYK Shipping Pvt Ltd is a J:2J: joint venture of Tata Steel and NYK Line A one of the largest
shipping companies in the world Tata NYK offers solutions that help its customers manage their
supply chain effectively

Tata NYK has several diversified high&performance environment&friendly Japanese&built vessels

Its ability to trade worldwide in a multitude of trade routes carrying a wide range of cargoes for a
varied set of customers gives it a competitive edg e Tata NYK has attained ISO K::425::F and ISO
49::425::9 certifications

4I JAMIPOL Ltd

Holding Type A Associate company Holding N& 6KHF N

JAMIPOL Ltd is a joint venture between Tata Steel 95N SKW Stahl&Metallurgy Germany 6:N and

TAI Industries and associates 5HN With a key purpose of improving the quality of life through

leadership in sectors of national economic significance JAMIPOL’s products are certified to

Integrated Management System IMS for three major international standards A ISO K::425::F ISO

49::42 5::9 and OHSAS 4F::42 5::H T he company has facilities in Kalinganagar and

Jamshedpur

28
=ﾤ: HRM Background and Practices3

The Steel industries has become a complex activity within the Steel market Linked directly and

indirectly with an over&all national growth and its impact as an integral part of regional segment of

a global environment Almost every Steel industries are involved various Functions in a day>s job

and as bell as long term strategically planning Thus requires a highly Effective team and

appropriate Manpower to run the organization Corporate goals are translated into viable realities

and profits only with human element that plays their due role in achieving the desired results Thus

even the high automation would require proper man behind the machine to make things happen

This idea has been realized by top management in progressive corporate industries Many other

organized sectors Like banking chemical oil and gas requires multi &layer manpower for its various

requirements of professionals and support staff The range may require reasonably educated

security guards on the one end and a highly educated and trained professional as head of

corporate finance production process marketin g sales quality and the other related work With

liberalization of activities within the steel sector for example produce the new product in market for

modern township project product for defense product with global environmental condition and so

many consumable projects Steel industries has turned itself into a more market& based business

where industries have expanded their reach more to customers> door steps in a big way making

business more practical This has further highlighted the need for proper deployment of man&power

to run industries more efficiently For many years HRM Tata steel like other institutions has been

handling this sensitive activity through respective personnel departments Personnel departments

were primarily engaged in approval of leaves handling of staff loans issuance of show cause

conducting dis ciplinary enquiries and termination from service

29
Recruitment was a routine function and was done in a mechanical way to hire people with specific

educational background irrespective of their real value to the institution Success stories of Tata

steel have been evident of the fact that HRM is quite different from management of physical

assets Human brain has its own peculiar chemistry Its strong sensory and decision&making

capacity has to be greatly emphasized by the employers The work force constituting all levels of

employees is constantly thinking in many dimensions On the one hand it is the assigned duty and

task they are to perform and for which they are paid by their employer on the other they think of

their long run goals and objectives By no means t heir brains can be controlled to think beyond the

current situation of employment Managing this educated skillful and trustworthy work force is not

an easy job A few of the current challenges faced by the steel industry in terms of human resource

management may be the following2

To make the entire System stronger efficient and l ow&cost the creation of Fundamentals
must include in the steel operations strategies an d processes2 strengthening the Quality
norms and market disciplineM adoption of international benchmarksM management of
Organizational change and consolidation within the financial systemM upgrading the
technological infrastructure of the production systemM and human resource development as
the catalyst of the Transformation

The Human Resource field in the steel Industry is considered as one of the process of
discovery and transformation The field of Human Resource can be described as emergent
and dynamic within the cultural business aspect in a steel Industry The success of today‘s
steel business will sparsely depends on the human resources of the organization in which
plays a crucial role in providing the services needed

The evolution of steel production in India affected the human resource practices recruitment
and selection practices and training system It is very important that the details of human

30
 resource are discussed along with the employees to build their own career planning
perceptions and development

The primary strength of the industry is the human resource that is why the efforts to develop

the skills and management are the main subject placed before the human resource A major

challenge for many steel industries will be to develop the special competencies and skills for

quality production sells development marketing an d risk management Putting the

information technology is a key contributed in human resource development Therefore the

HR model of the future will require professionals to be both driving and anticipating change

Understanding the complexities of the new business environment and forces to shaping it

=ﾤ> HR Practices and Methods

A key focus of the human resource management is highlighted in the role of Staffing performance

management training and development and compensat ion that plays Indifferent types of business

strategies With the acquisition and preparation of human resources including planningrecruitment

selection and training can affect the whole organi zational performance The HR planning the start

of the strategy illustrates the process of develop ing human resource plan The strengths and

weaknesses of staffing options such as outsourcing use of contingent workers and downsizing are

involved in practices The recruitment process is done strategically to determine the talented

employee fit for the position The selection process emphasizes the ways in minimizing errors in

employee selection and placement to improve the company‘s competitive position The selection

method standards such as validity and reliability are utilized

An effective training systems of the manager‘s role in determining employees readiness for
Training creating a positive learning environment and ensuring the training is used on the job

31
Beyond the human resource strategies are the rewarding and compensating that can strengthen or
weaken the employee effectiveness In order to give recognition and increase motivational levels

Amongst the employees Tata steel linked with the i ndividual performance in an incentive scheme

A or for some rewards that may come into any form like sabashi award Suggestion management

scheme kaizen coupon and other direct or indirect benefit In Summary all of the HRM strategies

and function should be aligned to help the company meet Its objectives A as well as focusing on

their customers The best practice approach assert that certain HR practices are found to

consistently lead to higher organizational performance independent of an organization‘s stated

Strategy The high performance HR practices foster innovation through the development of

Innovation values Encouraging of information shari ng goal setting and appropriate training and

development

CHAPTER&6

6: Job analysis Job design and Job evaluation

A job is defined as a collection of duties and responsibilities which are given together to an
Individual employee Job analysis is the process of studying and collecting information relating to
operations and responsibilities of a specific job It can be explained with the help of the following
diagram

64 Job analysis

Job Analysis is a process to identify and determine in detail the particular job duties and
requirements and the relative importance of these duties for a given job Job Analysis is a process
where judgments are made about data collected on a job

32
Job analysis contains a simple term called QanalysisQ which means detailed study or examination
of something job in order to understand more about it job Therefore job analysis is to understand
more about a specific job in order to optimize it Job analysis is a systematic process of collecting
complete information pertaining to a job Job analysis is done by job analyst who is an officer have
been trained for it

Job analysis is a procedure through which you determine the duties and responsibilities nature of

the jobs and finally to decide qualifications skil ls and knowledge to be required for an employee to

perform particular job Job analysis helps to understand what tasks are important and how they are
carried on Job analysis forms basis for later HR activities such as developing effective training

program selection of employees setting up of perf ormance standards and assessment of

employees performance appraisaland employee remuneration system or compensation plan

The intention behind job analysis is to answer questions such as2

• What is the need of the job to exist<

• What physical and mental activities does the worker undertake<

• When is the job to be performed<

• Where is the job to be performed<

• How does the job performed by an employee<

• What qualities and qualifications are required to perform the job<

• Job description Job specification

• Job title; name of the job Qualification

• Working hours Qualities

• Duties and responsibilities Experience

• Working conditions Family background

• Salary and incentives Training

• Machines to be handled on the job Interpersonal skills

33
As mentioned in the above table job analysis is divided into 5 parts

a Job Description

Job Description is a broad and written statement of a specific job in the organisation based on the
findings of a job analysis Job Description generally includes duties purpose responsibilities scope
and working conditions of a job along with t he title of the job and the name or designation of the
person to whom the employee will report Job description usually forms the basis of job
specification

b Job specification

Job specification is a statement in which we explain the qualities required by people applying for
the job

• Job specification as a statement of minimum qualification that person must possess to

perform a given job successfully &&& Stephen P Robbins . Marry Coutler

• Job specification is a statement of employee characteristics and qualifications required for

satisfactory performance of defined duties and tasks comprising a specific job or function
Job specification is derived from job analysis

While the job description describes activities to be done it is job specifications that list the
knowledge skills and abilities an individual need s to perform a job satisfactorily Knowledge skill s
and abilities KSAs include education experience work skill requirements personal abilities and
mental and physical requirements Job specifications for a data entry operator might include a
required educational level a certain number of mon ths of experience a typing ability of I: words

34
per minute a high degree of visual concentration and ability to work under time pressure It is
important to note that accurate job specifications identify what KSAs a person needs to do the job
not necessarily what qualifications the current employee possesses

The following are the benefits of job analysis ﾤ

4 Organizational structure and design2&

Job analysis helps the organization to make suitable changes in the organizational structure so that
it matches the needs and requirements of the organization Duties are either added or deleted from
the job

5 Recruitment and selection2&

Job analysis helps to plan for the future human resource It helps to recruit and select the right kind
of people It provides information necessary to select the right person

The recruitment and selection process is important for new and established businesses alike
human resources department has the support and expertise of employment specialists who assist
hiring managers with the procedures to ensure the company>s leaders are making wise hiring
decisions There are several pieces to the recruitment and selection process2 sourcing candidates
reviewing and tracking applicants conducting inter views and selection for employment

6 Performance appraisal and training;development2&

Based on the job requirements identified in the job analysis the company ;individual department
decides a training program Training is given in those areas which will help to improve the
performance on the job Similarly when appraisal is conducted we check whether the employee is
able to work in a manner in which we require him to do the job

35
9 Job evaluation2&

Job evaluation refers to studying in detail the job performance by all individual The difficulty levels
skills required and on that basis the salary is fixed Information regarding qualities required skill ed
levels difficulty levels is obtained from job anal ysis

J Promotions and transfer2&

When Tata steel give a promotion to an employee company need to promote him on the basis of
the skill and talent required for the future job Similarly when company transfers an employee to
another department or unit the job must be very similar to what he has done before To take these
decisions company collect Information from job analysis

I Career path planning2&

Many companies have not taken up career planning for their employees This is done to prevent
the employee from leaving the company When company plans the future career of the employee
information will be collected from job analysis Hence job analysis becomes important or
advantageous for company as bell as employee

H Labour relations2&

When companies plan to add extra duties or delete certain duties from a job they require the help
of job analysis when this activity is systematical ly done using job analysis the number of problems
comes on the account of management discuss with Ta ta worker union members to reduce the
labour problem and improve the labour relations

F Health and safety2&

36
Tata steel prepares their own health and safety pl ans and programs based on job analysis and
under guidance of factory act 4K9F with Bihar factory rule From the job Analysis Tata steel
identifies the risk factor on the job and based on the risk factor

Company provide the safety equipment’s safety appl iances and safety training to improve the
safety condition and safe work place for employee as bell as visitor or contractor labor Tata steel is
one of the steel companies who follow DuPont safety stander in its work place for its aim to zero
accident policy

K Acceptance of job offer2&

When a person is given an offer;appointment letter the duties to be performed by him are clearly
mentioned in it this information is collected from job analysis which is why job analysis becomes
important

Methods of job analysis

Def2 & A job is defined as a collection of duties and responsibilities which are given together to an
individual employee Job analysis is the process of studying and collecting information relating to
operations and responsibilities of a specific job

There are different methods used by Tata steel to collect information and conduct the job analysis
These methods are

4Personal observation2&

In this method the observer actually observes the concerned worker He makes a list of all the
duties performed by the worker and the qualities required to perform those duties based on the
information collected job analysis is prepare

37
5 Actual performance of the job2&

In this method the observer who is in charge of preparing the job analysis actually does the work
himself This gives him an idea of the skill required the difficulty level of the job the efforts required
etc

6 Interview method2&

In this method an interview of the employee is conducted A group of experts conduct the
interview They ask questions about the job skille d levels and difficulty levels They question and
cross question and collect information and based on this information job analysis is prepared

9 Critical incident method2&

In this method the employee is asked to write one or more critical incident that has taken place on
the job The incident will give an idea about the problem how it was handled qualities required and
difficulty levels etc critical incident method gives an idea about the job and its importance A critical
means important and incident means anything which takes place in the job

J Questioner method2 &

In this method a questioner is provided to the employee and they are asked to answer the
Questions in it The questions may be multiple choice questions or open ended questions The
Questions decide how exactly the job analysis will be done The method is effective because
People would think twice before putting anything in writing

I Log records2&

38
Companies can ask employees to maintain log records and job analysis can be done on the basis
of information collected from the log record A log record is a book in which employee‘s record ;
writes all the activities performed by them on the job The records are extensive as well as
exhausted in nature and provide a fair idea about the duties and responsibilities in any job

H HRD records2 ;

Records of every employee are maintained by HR department The record contain details about
Educational qualification name of the job number of years of experience duties handled any
Mistakes committed in the past and actions taken n umber of promotions received area of work
core competency area etc based on these records j ob analysis can be done

65 Job design

Definitions2 & Job design is the process of formation of structure to work activities This is a
systematic process of organizing specific job It is thus the logical sequence of job analysis which
provides the job related data and skill requirement of the incumbent

It is the management function of organizing tasks duties and responsibilities into a unit of work It
helps to set the purpose fix and task characterist ics and duties Job design is another words can
be defined as the integration of job content and the method of doing the job This combines the
qualification skills and experience required for t he job intrinsic and extrinsic rewards associated
with job and the basic relationship between organi zational needs and employee needs

Job design is the process of

a Deciding the contents of the job

39
b Deciding methods to carry out the job

c Deciding the relationship which exists in the organization

Job analysis helps to develop job design and job design matches the requirements of the job with
the human qualities required to do the job

Factors affecting job design 2 & There are various factors which affect job design in the
company Factors affecting job design

4 Organizational factors

5 Environmental factors

6 Behavioral factors

9 ﾤ Organizational factors3;

Organizational factors to refer to factors inside the organization which affect job design they are

a Task characteristics2&

Task characteristics refer to features of the job that is depending on the type of job and the duties
involved in it the organization will decide how th e job design must be done In case the company is
not in a position to appoint many peopleM a single job may have many duties and vice versa

b The process or flow of work in the organization 2&

There is a certain order in which jobs are performed in the company In case the company wishes it
could combine similar job and give it to one person this can be done if all the jobs come one after
the other in a sequence

c Ergonomics2&

40
Ergonomics refers to matching the job with physical ability and characteristics of the individual
band in providing an office environment which will help the person to complete the jobs faster and
in a comfortable manner

d Work practices2&

Every organization has different work practices Although the job may be the same the method of
doing the job differs from company to company This is called work practice and it affects job
design

=ﾤ Environmental factors3;

Environmental factors which affect job design are as follows

a Employee availability and ability2&

Certain countries face the problem of lack of skilled labour They are not able to get employees
with specific education levels for jobs and have to depend on other countries due to this job design
gets affected

b Social and cultural expectations2&

The social and cultural conditions of every country is different so when an MNC appoints an Indian
it has to take into account like festivals auspici ous time inauspicious time etc to suit the India n
conditions This applies to every country and therefore job design will change accordingly

:ﾤ Behavioral factors3;

41
Job design is affected by behavioral factors also These factors are

a Feedback2 &

Job design is normally prepared on the basis of job analysis and job analysis requires employee
feedback based on this employee feedback all other activities take place Many employees are
however not interested in providing a true feedback because of fear and Insecurity This in turn
affects job deign

c Autonomy 2&

Every worker desires a certain level of freedom to his job effectively This is called
autonomy Thus when we prepare a job design we must see to it that certain amount of
autonomy is provided to the worker so that he carries his job effectively

c Variety2&

When the same job is repeated again and again it leads to burden and monotony This leads to
lack of interest and carelessness on the job Therefore while preparing job design certain amount of
variety must be provided to keep the person interested in the job

Methods of job design

There are various methods in which job design can be carried out These methods help to analysis
the job to design the contents of the and to decid e how the job must be carried out

These methods are as follows2 &

I Job rotation

II Job enlargement

III Job enrichment

42
9 ﾤ Job Rotation3 &

Job rotation involves shifting a person from one job to another so that he is able to understand

and learn what each job involves The company tracks his performance on every job and decides

whether he can perform the job in an ideal manner Based on this he is finally given a particular

posting Job rotation is done to decide the final posting for the employee eg Mr A is assigned to the

marketing department whole he learns all the jobs to be performed for marketing at his level in the

organization after this he is shifted to the sales department and to the finance department and so

on He is finally placed in the department in which he shows the best performance Job rotation

gives an idea about the jobs to be performed at every level Once a person is able to understand

this he is in a better understanding of the working of organization

Advantages of job rotation

i Avoids monopoly2&Job rotation helps to avoid monopoly of job and enable the
employee to learn new things and therefore enjoy his job

ii Provides an opportunity to broaden one’s knowledge3&Due to job rotation the

person is able to learn different job in the organization this broadens his knowledge

iii Avoiding fraudulent practice2&In an organization like bank jobs rotation is

undertaken to prevent employees from doing any kind of fraud ie if a person is handling
a particular job for a very long time he will be able to find loopholes in the system and
use them for his benefit and indulge participate in fraudulent practices job rotation
avoids this

Disadvantages of Job Rotation

43
 iﾤ Frequent interruption3; Job rotation result in frequent interruption of work A
person who is doing a particular job and gets it comfortable suddenly finds himself
shifted to another job or department this interrupts the work in both the departments

ii ﾤ Reduces uniformity in quality 3; Quality of work done by a trained worker is

different from that of a new worker when a new worker I shifted or rotated in the
department he takes time to learn the new job mak es mistakes in the process and
affects the quality of the job

Misunderstanding with the union member3 ; Sometimes job rotation may lead

to misunderstanding with members of the union The union might think that employees
are being harassed and more work is being taken from them In reality this is not the
case

=ﾤ Job enlargement3 &

Job enlargement is another method of job design when any organization wishes to adopt proper
job design it can opt for job enlargement Job enlargement involves combining various activities at
the same level in the organization and adding them to the existing job It increases the scope of the
job It is also called the horizontal expansion of job activities

Jon enlargement can be explained with the help of the following example & If Mr A is working as
an executive with a company and is currently performing 6 activities on his job after job
enlargement or through job enlargement we add 9 more activities to the existing job so now Mr A
performs H activities on the job It must be noted that the new activities which have been added
should belong to the same Hierarchy level in the organization By job enlargement we provide a
greater variety of activities to the individual so that we are in a position to increase the interest of

44
the job and make maximum use of employee‘s skill Job enlargement is also essential when
policies like VRS are implemented in the company

Advantages of job enlargement

i ﾤ Variety of skills3 ; Job enlargement helps the organization to improve and increase the
skills of the employee due to organization as well as the individual benefit

ii ﾤ Improves earning capacity3; Due to job enlargement the person learns many new
activities When such people apply for jobs to other companies they can bargain for more salary

iii ﾤ Wide range of activities3;Job enlargement provides wide range of activities for
employees Since a single employee handles multiple activities the company can try and reduce the
number of employee‘s This reduces the salary bill for the company

Disadvantages of job enlargement

i ﾤ Increases work burden3; Job enlargement increases the work of the employee and not
every company provides incentives and extra salary for extra work Therefore the efforts of the
individual may remain unrecognized

ii ﾤ Increasing frustration of the employee3 ; In many cases employees end up being

frustrated because increased activities do not result in increased salaries

iii ﾤ Problem with union members3; Many union members may misunderstand job
enlargement as exploitation of worker and may take objection to it

:ﾤ Job enrichment3 ;

45
Job enrichment is a term given by Fredric Herzberg According to him a few motivators are added
to a job to make it more rewarding challenging and interesting According to Hertzberg the
motivating factors enrich the job and improve performance In other words we can say that job
enrichment is a method of adding some motivating factors to an existing job to make it more
interesting

The motivating factors can be

a Giving more freedom

b Encouraging participation

c Giving employees the freedom to select the method of working

d Allowing employees to select the place at which they would like to work

e Allowing workers to select the tools that they require on the job

f Allowing workers to decide the layout of plant or office

Job enrichment gives lot of freedom to the employee but at the same time increases the
responsibility Some workers are power and responsibility hungry Job enrichment satisfies the
needs of the employees

Advantages of job enrichment

i ﾤ Interesting and challenging job3 ; When a certain amount of power is given to

employees it makes the job more challenging for them we can say that job enrichment is a method
of employee empowerment

ii ﾤ Improves decision making3 ; Through job enrichment we can improve the decision
making

ability of the employee by asking him to decide on factory layout method and style of working

46
iii ﾤ Identifies future managerial caliber3 ; When we provide decision making opportunities
to employees we can identify which Employee is better that other in decision making and mark
employees for future promotion

iv ﾤ Identifies higher order needs of employees3; This method identifies higher

order

needs of the employee Abraham Maslow‘s theory of motivation speaks of these higher order needs
eg ego and esteemed needs self&actualizati on etc These needs can be achieved through job
enrichment

v ﾤ Reduces work load of superiors3; Job enrichment reduces the work load of senior staff
When decisions are taken by juniors the seniors work load is reduced

Disadvantages of job enrichment

i Job enrichment is based on the assumptions that workers have complete knowledge to take
Decisions and they have the right attitude In reality this might not be the case due to which there
can be problems in working

ii Job enrichment has negative implications ie Along with usual work decision making work is also
given to the employees and not many may be comfortable with this

iii Superiors may feel that power is being taken away from them and given to the junior‘s This
Might lead to ego problems

iv This method will only work in certain situations Some ResponsibilityM this method will not work for
such jobsjobs already give a lot of freedom and

47
v Some people are internally dissatisfied with the organization For such people no amount of job
enrichment can solve the problem

:ﾤ: Job Evaluation

Job evaluation is a process of determining the relative worth of a job It is a process which is
helpful even for framing compensation plans by the personnel manager Job evaluation as a
process is advantageous to a company in many ways2

I ﾤ Reduction in inequalities in salary structure A It is found that people and their

motivation is dependent upon how well they are being paid Therefore the main objective of job
evaluation is to have external and internal consistency in salary structure so that inequalities in
salaries are reduced

48
ii ﾤ Specialization A Because of division of labour and thereby specialization a large number of
enterprises have got hundred jobs and many employees to perform them Therefore an attempt
should be made to define a job and thereby fix salaries for it This is possible only through job
evaluation

Iii ﾤ Helps in selection of employees + The job evaluation information can be helpful at the
time of selection of candidates The factors that are determined for job evaluation can be taken into

account while selecting the employees

iV ﾤHarmonious relationship between employees and manager & Through job

evaluation harmonious and congenial relations can be maintained between employees and
management so that all kinds of salaries controver sies can be minimized

V ﾤ Standardization & The process of determining the salary differentials for different jobs
become standardized through job evaluation This helps in bringing uniformity into salary structure

Vi ﾤ Relevance of new jobs & Through job evaluation one can understand the r elative value
of

new jobs in a concern

According to Kimball and Kimball“ Job evaluation r epresents an effort to determine the relative
value of every job in a plant and to determine what the fair basic wage for such a job should be”

Thus job evaluation is different from performance appraisal In job evaluation worth of a job is
calculated while in performance appraisal the wort h of employee is rated

49
 CHAPTER&9

>ﾤ@ Human Resource Planning

This is the process which assures the organization that it will have adequate number of qualified
persons at requisite times performing in a way to satisfy the needs of the organization . also
provide satisfaction to the individual employee so employed

The process involves2

50
a Estimating the present . future requirements of human resources based on objectives . long
range plans of the organization

b Calculation of net human resource requirements based on the present availability of human
resources

c Taking suitable steps to identify mould change . develop the strength of existing employees so
as to meet the future requirements

d Preparation of action plans to acquire the balance human resources from outside the
organization . to develop the existing employees

>ﾤ 9 ﾤ Recruitment3

It is the process of searching for future employees requirement . ensuring they apply for jobs

in the organization It involves2

a Identification of existing sources of candidates . developing them

b Seeking out . identifying new sources of applicants

c Motivating the right type of candidates to apply for jobs in the organization

51
d Ensuring a healthy balance between internal . external sources

>ﾤ=ﾤ Selection3

It is the process of ascertaining the qualifications experience skill Knowledge etc of an applicant to
ascertain his;her suitability for the job appliedThis includes2

a Developing application blanks

b Creating . developing valid . reliable testing techniques

c Formulating interviewing techniques

d Checking of references

e Setting up for medical examination policy . procedure

f Line Managers to be involved in the decision making

g Sending letters of appointment

h Employing the selected candidates when he repor ts for duty

>ﾤ:ﾤ Placement3

It is a process of allotting to the selected candidate the most suitable job as per the job
requirements . employee specifications

This function includes2

a Counseling the concerned managers regarding the placements

a Overseeing the follow&up studies employee perfo rmance appraisal to monitor

employee adjustment to the job in the coming days

52
b Correcting wrong;misjudged placements if any

>ﾤ>ﾤ Induction . Orientation3

These are procedures by which a new employee is rehabilitated in the new surroundings .
introduced to the practices procedures policies people etc of the organization It includes2

a Familiarizing the employee with company philosophy objectives policies career planning .
development company product market share history culture etc

b Introduce new employee to the peopleRhis colleagues supervisors . subordinates

c Mould the employees by orientation methods to the new working conditions

CHAPTER&J

A ﾤ@ Human Resource Development

This process involves improving molding . develop ing the skills knowledge creativity attitude
aptitude values commitment etc based on the pre sent . future job . company Requirements

Human Resource Development HRD is the framework for helping employees develop their
personal and organizational skills knowledge and abilities

53
HRD is one of the most significant opportunities that employees seek when they consider you as
an employer The ability and encouragement to con tinue to develop their skills help you to retain
and motivate employees

Human Resource Development includes such opportunities as employee training employee career
development performance management and development coaching mentoring succession
planning key employee identification tuition assi stance and organization development

The focus of all aspects of Human Resource Development is on developing the most superior
workforce so that the organization and individual employees can accomplish their work goals in
service to customers Organizations have many opportunities for human resources or employee
development both within and outside of the workpla ce

Human Resource Development can be formal such as in classroom training a college course or an
organizational planned change effort These are the options that you have for developing your
employees Formal training can add value in your workplace

Or Human Resource Development can be informal as i n employee coaching by a manager or

internal training and development classes taught by internal staff or a consultant Mentoring by
more experienced employees is also recommended for employee development

It is especially useful as employees become more senior within organization Traditionally executive

leaders and senior managers are resistant to training classes and conference educational

sessions Healthy organizations believe in Human Resource Development and cover all of these

bases One option that is recommended in preference to many other ways in which organizations

develop employees is to provide inte rnal training either with internal staff or a paid facilitator or

consultant

54
9 ﾤ Performance Appraisal3

It is the continuous . systematic evaluation of individual employees with respect to their

performance . their potential for future development

It includes2

a Enunciating policies procedures . techniques

b Assisting functional managers

c Reviewing . summarizing reports

d Evaluating the effectiveness of various programmes

=ﾤ Training3

It is the process of transmitting the employees the technical . operating skills and knowledge It
includes

a Identification of training needs of the individuals . for the organization

b Developing appropriate training programmers

c Assisting . advising the management in the conduct of training programmes

d Transmitting requisite job skills . job knowledge to the employees

e Asses the effectiveness of the training programmes

55
A ﾤ 9 Management Development3

It is the process of designing . conducting appropriate executive development programmes so as

to develop the managerial . human relations skills of the employees It includes2

i Identification of the areas in which management development is needed

Iiconducting development programmers

Iii Motivating executives;managers

iv Designing special development programmers; assessment procedures for promotions

V Utilizing the services of specialists&both internal . external for development .;or Institutional
external development programmes

vi Evaluating the effectiveness of executive development programmes

A ﾤ=ﾤ Career Planning . Development3

Effective HRM encompasses career planning career d evelopment and succession planning An

organization without career planning and career development initiatives is likely to encounter the

highest rate of attrition causing much harm to the ir plans and programmes Similarly without

succession planning managing of vacancies particul arly at higher levels become difficult There are

examples of many organizations that had to suffer for not being able to find a right successor for

their key positions With the increase scope for job mobility and corporate race for global

headhunting of good performers it is now a well&es tablished fact that normal employment span

for key performers remains awfully short

56
The term career planning and career developments are used interchangeably in most of the
organizations It is the planning of one‘s career . implementation of career plans by means of
education training job search . acquiring of work experience It includes2

i Internal and External mobility 2&

The lateral or vertical movement promotion transf er demotion or separation of an employee within
an organization is called ´internal mobility

‡Some employees leave the organization for reasons such as better prospects retirement
termination etc such movements are known as exter nal mobilityµ

Vertical horizontal transfers promotions and demo tion is the part of internal mobility

NEED FOR INTERNAL MOBILITY & The internal mobility is needed for the following reasons &

• Changes in technology mechanisation etc resulting in enhancement of job demands

• Expansion and diversification of production;operations

• Adding different lines of auxiliary and supportive activities in the organisation

• Taking up of geographical expansion and diversification

• Introduction of creative and innovative ideas in all the areas of management resulting in&
increased job demands

• Changes in employee skill knowledge abilities apt itude values etc

• Changing demands of trade unions regarding protecting the interests of their members

• Changing government role in human resource management

57
 • Economic and business trends and their impact on job design and demands

ii ﾤ Transfer3;

Process of placing employees in the same level jobs where they can be utilized more effectively as
per the needs of the organization This also means developing transfer policies offering assistance .
guidance to employees under transfer orders . evaluating transfer policy periodically

iii ﾤ Promotion3;

It deals with the upward assignment of employees to occupy higher positions with better status .
pay in consonance with resources of employees . job requirement The department must ensure
that

Equitable fair . consistent promotions are formula ted . administered

Managers . employees are given assistance . guidance on the subject of promotion

Executions of promotional policies are as per policies . procedures

iv ﾤ Demotion3 ;

it is the downward assignment of an employee in an organization The department must ensure

that2

Equitable fair . consistent demotion policies are drawn up

Assisting . advising employees regarding demotions

Ensure fair implementation of demotion Policies . Procedures

A ﾤ:ﾤ Organizational Development3

58
The planned process drawn up to improve organizational effectiveness through changes in
individual . group behavior culture . systems of t he organizationRdrawing models from applied
behavioral science

Theory and practice of planned systematic change i n the attitudes beliefs and values of the

employees through creation and reinforcement of long&term training programs OD is action

oriented It starts with a careful organization&wide analysis of the current situation and of the future

requirements and employs techniques of behavioral sciences such as behavior modeling sensitivity

training and transactional analysis I ts objective is to enable the organization in adopting&better to

the fast&changing external environment of new markets regulations and technologies

CHAPTER;C

I: Compensations Management

The Definition of Compensation Management2

In simple terms compensation is everything that a company offers its employees in return for their
talent and time When organized the right way comp ensation can be strategically leveraged to
reduce turnover boost employee engagement and attr act top talent The purpose of compensation

59
management is to make the most of company pay in rupees in a way that rewards employees for
their work

Why is Compensation Management so importantD

Compensation management makes a company vigilant It drives managers to be on the look out for
star performers who must be given rewards for their efforts which ultimately decreases the risk of
losing a valuable employee

It is positive reinforcement Yes money doesn’t ma ke the world go round and if line managers are
not friendly helpful and supportive retention is d ifficult But cash prizes and consistent monetary
perks in conjunction with a great work environment allow companies to grow by leaps and bounds
through motivated hardworking employees

Compensation management enhances the company’s reputation When workers are satisfied with
their monetary and intangible rewards they attract better prospects for vacant positions bringing
new fresh talent to the organization

C ﾤ 9 ﾤ Compensation

Compensation includes all the extrinsic rewards that an employee receives during and after the
course of his sob For his contributions to the organization The principles of compensation payment
are that it has to be adequate equitable a nd fair to the employees Compensation encompasses
base salary incentives bonus and bene fits and is based on job evaluation

Job evaluation;

60
It is a systematic determination of the value of each job in relation to other jobs in the organization
in the industry and in the market In other words job evaluation involves classifying a job based on
its importance and its contribution to the organization and its requirements

It involves

Identifying;designing suitable job evaluation techniquesM

Evaluating various jobsM

Ascertaining the relative worth of jobs in various categories

Wage and salary administration A

The process of formulating and operating a suitable wage and salary program is known as wage
and salary administration

It includes2

Conducting wage and salary survey in the market and in the industryM

Determining wage and salary rates on the basis of various factors like law equity fairness
and performanceM

Implementing wage and salary administration programsM

i ﾤ Incentives;

Incentives are the rewards an employee earns in addition to regular wages or salary based on the
performance of the individual the team or the orga nization

Ii Bonus

Bonus is primarily a share in the surplus or bounty and is directly related to the organization‘s
performance In India the payment of bonus is a ve ry popular means of rewarding employees and

61
is governed by The Payment of Bonus Act 4KIJ Fringe benefits R Fringe benefits are those
monetary and non&monetary benefits given to employees during their employment and sometimes
in the post&employment period also These benefits are connected to employment with the
organization and are not related to the employee‘s performance

These benefits provide a sense of security to the employee and keep them committed to the
organization Some of the marginal benefits includeM

Disablement benefits

Housing facilities

Canteen facilities

Conveyance facilities

Educational facilities for employees and their children

Credit facilities

Recreational facilities

Medical and welfare facilities

Post&retirement benefits

Company stores

Legal aid

C ﾤ=ﾤ Compensations and Benefits3

Compensation and benefits is a sub&discipline of human resources focused on employee

compensation and benefits policy&making While compensation and benefits are tangible there are
intangible rewards such as recognition work&life a nd development Combined these are referred to
as total rewards The term Qcompensation and benefitsQ refers to the discipline as well as the
rewards themselves

62
Employee compensation and benefits are divided into four basic categories2

9 ﾤ Guaranteed pay A a fixed monetary cash reward paid by an employer to an employee The
most common form of guaranteed pay is base salary Guaranteed pay also includes cash
allowances housing allowance transport allowance etc differentials shift differentials holiday
differentials and premiums overtime night shift etc

=ﾤ Variable pay A a non&fixed monetary cash reward paid by an employer to an employee that is
contingent on discretion performance or results a chieved The most common forms of variable pay
are bonuses and incentives

:ﾤ Benefits A programs an employer uses to supplement employees’ compensation such as paid

time off medical insurance company car and more

>ﾤ Equity;based compensation A stock or pseudo stock programs an employer uses to provide
actual or perceived ownership in the company which ties an employee>s compensation to the
long& term success of the company The most common examples are stock options

Tata steel provide compensations to its employees in shape of Cost of any medical Treatment in
Tata main hospital TMH Jamshedpur and tie up with India most trusted hospital like CMC Vellore
Medanta Gurugram etc

Cancelled Holidays fees Repair of vehicle any inj ury while doing job tasks and some other
Employees can claim their compensation if any above case occurs Benefits which are provided By
Tata steel are Paid time off Retirement Disabilit y Insurance Education and training programs In
Paid time off benefits the employee is paid for the time he don‘t worked duo to vacation holiday
pay and sick pay

Retirement benefits are in shape of pension gratui ty provident fund and superannuation fund In
disability Tata steel provide financial support when an employee becomes injured or ill and is

63
unable to do his;her job and in education . training programs Tata steel provide different
education . training to their employees to furbish their skill Tata Steel benefits and perks including
insurance benefits retirement benefits and vacation policy

Compensation managers are responsible for researching establishing and maintaining a

company>s pay system In performing this important function the compensation manager has to
research and understand the current and upcoming competitive markets for employee pay and
benefits They must find ways to ensure that pay rates are fair and equitable to retain and recruit
employees

The compensation manager may specialize in larger organizations in specific areas such as job
classification or market pay studies

Compensation managers meet with line managers to help develop promotion and retention
strategies for existing employees

They may be responsible for annual increase programs since companies often tie annual salary
increases to performance Thus a compensation mana ger can find herself working closely with
individual managers as well as HR business partners HRIS experts and the payroll department to
ensure that raises are done correctly and fairly

CHAPTER;E

E ﾤ@ Human Relations

Human relations in the workplace are a major part of what makes a business work Employees must
frequently work together on projects communic ate ideas and provide motivation to get things done
Without a stable and inviting workplace culture difficult challenges can arise both in the logistics of
managing employees and in the bottom line Businesses with engaging workplaces and

64
a well&trained workforce are more likely to retain and attract qualified employees foster loyalty wit
h customers and more quickly adapt to meet the needs of a changing marketplace

Administering various human resources policies like employment development .compensation .

interactions among the employees on one hand . employees . the management on the other

create a sense of working relationships between workers . management . trade unions Basically

they are all interactions between human beings Human relations is therefore is an important area

in management which integrates people into work situations in a way that motivates people to

work together with economic psychological . social sati sfaction thereby increasing their

productivity Hence Human Resources Management functions will center on

4 Understanding perception personality learning intra . inter personal relations inter . intra
group relations

5 Motivating all employees

6 Promoting employee morale

9 Developing communication skills

J Developing leadership skills

I Redressing satisfactorily through a well&defined grievance procedure

H Handling disciplinary cases by established disciplinary procedures . in all fairness

F Providing adequate counseling to solve employees ‘personal work . family problems thereby
releasing their stress . strain

The main aim of Human relations in the workplace is

Improving Retention

65
The quality of workplace relations is critical to employee retention Employee retention may seem

trivial especially in a workplace that is used to a high turnover but managers must remember that

turnover is financially very costly Every new employee requires a substantial investment of time

and energy in their recruitment and training In addition severing ties with old employees can

sometimes be challenging especially if the circums tances are not particularly amicable Making

sure quality employees remain interested and engaged in the business requires patience

compassion and flexibility but can actually make t he business more financially sound

Motivation and Productivity

Workplace relationships provide a source of employee motivation which is important to

maintaining productivity Employees who are interested in their work and in the well&being of other
employees tend to be more productive than those who are not This productivity pays obvious
financial dividends to the company as it can get more done i n less time with fewer costs

Fostering Creativity

The modern business environment often rewards businesses that are able to quickly
develop products that meet changing consumer needs

CHAPTER;F

F ﾤ@ HUMAN RESOURCE MANAGEMENT IN STEEL INDUSTRIES

The classification of the Steel industries into broad groups such as public sector old private sector
new private sector on the basis of ownership patte rn It is also well known that the business mix
delivery channels . IT strategies of these organizations vary substantially What is little known but

66
of greater importance is that each of these industries follows very distinct HR practices which
have contributed substantially to the business process es

Personnel management in a steel plant is concerned with obtaining organizing utilizing and
motivating the human resources needed by the steel plant It develops requisite organizational
climate and management styles to promote effective effort of cooperation and trust amongst all
the employees of the steel plant It aims at getting effective results by organizing and directing the
co& operative efforts of human beings This also helps the organization in meeting its legal
obligations and social responsibilities

Personnel management is an extension of the general management in the organization It is

concerned with promoting and stimulating competent work force so that they can make their
fullest contribution to the organization for the achievement of its objectives and goals

F ﾤ 9 ﾤ HRM IN SMALL PRIVATE STEEL INDUSTRIES

It is sad that the HR policies of private steel industries are totally dominated by the Registrar of
Company This is perhaps one reason why the coope ratives are unable to improve themselves

The HR function as practiced by private is effectively involved in the identification of specific

skills that each job warrants . recruiting suitable staff by every way possible Recruitment is a
continuous process with a strong focus on getting the right person for the right job by offering

67
appropriate compensation incentives . designations There is a great energy spent in keeping the
turnover low . offering appropriate training inputs Possibly there are as many pay structures as
there are employees More importantly HRM has a ro le in monitoring . mentoring the employee
There are no routine transfers Rather people are recruited in different geographical locations .
different levels Technology has helped in centralizing the back office . other functions such that
service can be provided from a distance

These institutions adopt a proactive performance appraisal system but still short of 6I: Degree
appraisals Their training process is concerned with both skills building . motivating It should however
be said that the demand for professionals on account of growth of Indian Business is such that the
efforts of HRM have not helped it from completely staving off staff turnover in the ranks

F ﾤ=ﾤ HRM IN PUBLIC SECTOR STEEL INDUSTRIES

The concepts of the phenomenon of change enunciated in the preceding chapter and different
viewpoints forwarded therein provide valuable insights into this area of management which has
assumed critical importance for the survival and growth of business organization in the present
context It will also help in understanding the process of growth of public sector and steel industry
in India The study of the growth of steel industry per se and the mariner in which the company

68
under study reacted to it would further lead to important understanding of the management
of change practiced by the company under study

In the recent times the contours of HR function in public sector steel industries are slowly but
definitely changing One could say that these sectors are discovering the HR function . it is hoped
that these industries will fast catch up with others It may be recalled that in a controlled
environment . to meet with the rapid expansion project

HRM practices similar to that of Government departments Here in HRM did not have a direct role
in business development but was more concerned with centralized recruitment to staff . providing
them across the country

CHAPTER&K

H ﾤ@ Role and Responsibilities of the Human Resource Management

in

Tata steel ltd ﾤ

69
While the impact of the global economic crisis has been felt in varied degrees across all the
geographies in which the Tata Steel Group TSG operates keeping the employees cheerful and
motivated in these trying times has remained the focus of the Human Resources department The
Group realises that its employees are the most valuable human capital and that they play a major
role in building the competitive advantage of the Company’s business across the globe

As the economic crisis hit the world Tata Steel Eu rope TSE employees contributed to the

‘Weathering the Storm’ initiatives to reduce costs and increase value in the second half of the

financial year The company the employees and the trade unions demonstrated the strength of their
relationships by working together in the difficult times Despite the present economic crisis TSE has

been able to maintain its position as an employer of choice through the following initiatives2

• By demonstrating its commitment to health and safety

• By maintaining a level of apprentice and graduate recruitment

• By demonstrating the value of its culture of innovation and improvement by delivering value
creation and cost reductions

• By building and maintaining positive employee relations by agreeing to innovative

partnership deals with employee representatives and trade unions to reduce employment
costs and minimise redundancies

• By taking the highest moral approach in its management of redundancies and their impact
on the communities in which they occur

• By working with governments and other agencies in support not only of its own workforce
but those of its customers and manufacturing as a whole This is done to support the
industry and demonstrate its central role to society and the countries in which the Group
operates in Tata steel ltd

70
H ﾤ 9 ﾤ Role of Human Resource Management3

The role of the Human Resource Department is to create the climate . conditions in which
management throughout the industries will be enabled to optimize the individual . collective
contribution of all employees to the short . long&term success in Tata steel ltd The main role of
Human Resource management department in Tata steel is

• Recruitment

• Training

• Professional Development

• Maintaining Work Culture

• Resolving Conflicts

• Employee Relations

• Rewards and Incentives

• Legal Knowledge

• Payroll Management

• Organization

• Management

H ﾤ=ﾤ Responsibilities of Human Resource Management3

A human resource manager has two basic functions2 overseeing department functions and
managing employees For this reason a human resour ces manager must be well&versed in each
of the human resources disciplines A compensation and benefits training and development
employee relations and recruitment and selection Core competencies HR managers have are

71
solid communication skills and decision&making capabilities based on analytical skills and critical
thought processes

To be the principal sponsor . ―guardian of HR policies in Tata steel

To propose . obtain agreement on changes to these policies from time to time . to ensure
that policies which have been agreed are being implemented throughout the company

To contribute fully to the task of meeting the business challenges within company has to
face by supporting departmental divisional Manager s in continuously developing the
potential of employees . in creating conditions in which all the employees are motivated to
meet the objectives of the company

To continuously monitor the company strategies to ensure that HR policies are appropriate

. that employee numbers . skills are fully supportive of such strategies

To deliver a full range of personnel services in support of line management These services
include manpower planning recruitment;transfer re muneration and training . employee
welfare

To support line management in their day&to&day management of the workforce by

providing advice . consultancy on personnel . performance management issues

CHAPTER;9@

9@ﾤ@ EMPLOYEE RELATIONS IN TATA STEEL ﾤ

“Employee Relation” is a function of many variables Some of the contributing factors are
participative management grievance settlement mach inery wage determination etc Tata Steel is

72
the largest steel manufacturer in India with an annual capacity of 56J MT and employees
approximately F:::: Tata Steel workers in a centu ry&old history have not gone on a strike at
Jamshedpur where its Indian manufacturing operatio ns are largely based

The functioning and model of Tata Steel in many ways can be perceived as ideal and other unions
across the country can adopt similar practices Growth of the trade union is a response to the
challenge thrown by the modern industry Viewed in this background the origin of trade union
movement in Tata Steel were due to the same reason as elsewhere in Europe and America Since
4K:H dissatisfaction was increasing in the working class in Tata Steel However it was only in 4K5:
that labour organization was born after great struggle with the management

The genesis of trade union Tata Steel can be traced back to 4K5: Over the years the workers’
union has evolved under the capable leadership of stalwarts such as Mahatma Gandhi Rajendra
Prasad and Subhas Chandra Bose to name a few

At Tata Steel the prime focus in terms of HR practices is on people development and growth and
employee relations which is imbibed in the culture of caring for people Tata Steel has always held
the view that people are its greatest asset It has adopted the best standards for employee well&
being and quality of life strongly promoting workf orce rights The other focal point is upholding the
Tata values through transparency and fairness in HR practices and policies

Employee engagement practices facilities and bene fits are aligned towards ensuring retention of
employees Our engagement survey results are constantly acted upon to maintain competitive
compensation productive work environment employee involvement in improvement initiatives
opportunities for learning and growth performance& based rewards and recognition high standards
of amenities and facilities housing medical educ ation recreation social support and two&way
communication to name a few

73
 The change in the business scenario across the world has been center stage at the Tata Steel
group While meeting the current business challenge has been the focus there is a clear mandate
to be continually resolved to not only weather the current economic storm but to prepare and equip
the group for a healthy future as a leading global steel organisation

Further the business environment is swiftly changi ng bringing in its own set of opportunities and
challengesM at the same time the group is rapidly evolving and expanding its reach strategically
geographically and culturally The new geographies and the shifting environments of the businesses
demand that we prepare our leaders current and future to face and overcome such adversities
Hence for a sustainable future leade rship development at all levels is the focus across the Tata
Steel organisation

Business growth has posed a challenge of a kind n ever experienced by the company in the past

resulting in a 9J&percent increase in demand for leadership positions over FY4: Further 4H

percent of our senior leaders are retiring in the next three years This has compounded the

challenge of meeting the increased demand in an already constrained supply situation The

executive committee headed by the managing directo r owns the development and succession

plans for the top positions and reviews availability of talent across all functions during talent

reviews and succession planning meetings

CHAPTER;99

99 ﾤ@ CURRENT CHALLENGES FACED BY TATA STEEl HRM

Effective work force3

74
A time&consuming . hectic job is to hunt the right talent Higher the professional value of the

vacancy tougher is the search Identifying the rig ht stuff followed by negotiation is the element

which makes the job tough for the employer Tata steel is keenly interested to fill up two types of

breeds of professionals Ones who are outstanding professionals with high job hopping attitudeR

these are those who come in&work for some tome . then leave for better prospects Others are

those who are keenly picked&up trained . are someh ow retained to be developed as future

management within the Tata Steel

Management trainees are a growing popular phenomenon where freshly qualified business
graduates Engineering graduate are engaged by Tata steel . a certain percentage of these well&
equipped professionals stay back within the organization to grow into the footsteps of senior
managers

Tata steel jobs being apparently lucrative for many attract a large number of candidates against
advertised vacancies in media creating a large database management problem This has been
facilitated by specialized hiring agencies who may take up the job of hiring in case of large number
of vacancies

Right People3;

The most difficult agenda of HRM across the steel sector is to retain the right people Sudden
growth of steel sector . other services has put pressure on HR Managers in Tata steel to engage
more professionals with in shorter span of time thereby attracting manpower in other sector on
attractive packages has made the job market very competing A steel industry in a normal course

75
invests time . money to hire . train the appropriate workforce for its own operations This
readymade force is often identified . subsequently picked&up on better terms by others

Compensation3;

How much to pay the right employee . how much to the outstanding performer Tata steel have
traditionally followed pay scales with predetermined increments salary slabs bonuses . time based
fringe benefits like car . house advance gra tuity pensions etc The situation is not the same
anymore An increment of RsJ::&F:: per annum or 6 three percent per annum is no more a source
of attraction for a professional anymore A basic pay with traditional formulas of linkage with
medical . other facilities has no soothing today

A promise of future growth learning culture . corp orate loyalty is out of dictionary . does not mean
anything to this energetic . competent performer today A waiting period of 6&9 years in each
grade haunts the incumbents who strongly believe in immediate compensation

A freshly hired professional requires a brand new car or car loan an resuming office quite contrary
to his previous breed of Tata steel who would wait for the job seniority to qualify for a car loan

Job Satisfaction3;

Everybody in the company wants to work in the preferential department preferential location . boss
of his liking An administrative deviation from any of these results in lowered job satisfaction
Although hiring is normally based on regional requirement matching the area of activity with that of

76
employee‘s nativity yet other elements like appointment in the department of choice . preference
makes the job of HR manager quite challenge

What the HR manager cannot afford is the dissatisfied employee who not only disrupts the smooth
working him but also spreads the negativity to oth ers by his de&motivated attitude Morale
Boosting

What has long been overlooked is the morale boosting of the employees by the organizations
Human beings even if satisfied of material wellbeing need to be appraised . encouraged
constantly

Tata steel have realized this need . have taken steps to keep their work force motivated through
proper encouragement like man of the mouth awards repeat get&togethers conferences sports
events dinners company sponsored travel reunions etc This is the way employees create a feeling
of belongingness

CHAPTER;9=

9=ﾤ@ HR DEVELOPMENT IN TATA STEEL

77
The Tata Steel must emphasis on human resource development as one of the critical areas of its

operations It should redraw its training . development schedules to suit the requirements of the

current emerging scenario Requisite training should be imparted to various Department and

divisional level functionaries as also administrative staff Besides in&house training the reputed

external agencies and expert should be utilized for human resource development with a view to

updating their knowledge . to keep them abreast of the current business scenario for meeting the

challenges ahead The concept of segment specialization may be resorted to in respect of the

personnel selected therefore It is now thought expedient to plan . strengthen the squad of skilled

officers in various segments as Engineering Operat ion Maintenance IT Marketing Management

Risk management Risk based supervisors Law secur ity etc The lead must play an effective role in

improving the work environment . pursuing staff welfare measures in the form of whole range of

financial assistance with reference to various loans of sorts

Human resource skills are other areas of challenge Because of modernization . technological

advancement rigorous training . man power planning are required In the market scenario

characterized by heightened competition growing cu stomer needs . technological up gradation

Tata steel fine tunes its HR policy to meet its corporate objectives New training systems have been

developed to impart competencies . a broad range of skills among the employees to deliver faster .

superior service that can delight the customers The Industrial Relations in the company have been

harmonious . cordial

9=ﾤ 9 TRAINING . DEVELOPMENT

Meaning . Definition3 Training

78
Organization . individual should develop . progress simultaneously for their survival . attainment of
mutual goals So every modern management has to develop the organization through human
resource development Employee training is the important sub system of human resource
management Employee training is a specialized function . is one of the fundamental operative
functions for human resources management

After an employee is selected placed . introduced he or she must be provided with training
facilities Training is the act of increasing the knowledge . skill of an employee for doing a
particular job Dale S ﾤ Beach defines the training as ―the organized procedure by which
people

learn knowledge . skill for a definite purpose The training system in the Tata Steel has a

strong structural base However in the past the training activities have been more ritualistic due to
absence of a strategic link between training . human resources development Today it is important

that the training function is made an effective organizational intervention by establishing a clear

policy of training . development within the framework of total human resource development The

training establishments need to be actively involved in the total training process starting from the

identification of the training needs evaluation of training effectiveness . the benefits of training to

the end users The need for training . development is determined by the employee‘s performance

deficiency computed as foll ows

Training . Development Need I Standard Performance + Actual Performance ﾤ

We can make a distinction among training education . development Training as was started
earlier refers to the process of imparting specifi c skills Education on the other hand is confined
to theoretical learning in the classrooms

Training . Education Differentiated3

79
During the FY&4I&4H Tata steel provided both class room and web module training to people
who work at its sites Training was provided on POSH4 COI5 and TCOC6

• 65F4 Officers
• 4996: Non&Officers
• 55:IK Contractors> Employees>
• 4:FJ Vocational Trainees

Training . Education Differentiated 3

TRAINING EDUCATION

Application oriented Theoretical oriented

Job experience Classroom learning

Specific tasks General concepts

Narrow perspective Broad perspective

Development2

80
 “Give a man a fish . you give him meal ﾤ Teach man to fish .

you give him a livelihood ﾤ”

This ancient Chinese proverb seems to describe the underlying rational of all raining .
development programs No banking organization can long ignore the training . development needs
of its employees without seriously inhabiting the performance Even the most careful selection does
not eliminate the needs for training since people are not molded to specifications . rarely meet the
demands of their jobs adequately

This HRM function deals with the overall development of the employees This includes their

professional . well as their personal development It is a part of HRM function to identify

opportunities for enhancing the skills of the resources Promotion is regarded as one of the ways of

recognizing development undertaken by an employee Development is also largely dependent on

training Generally people think that training . development are one . the same but there are many

differences between them

TRAINING . DEVELOPMENT LINE DIAGRAM

• JOB PROFILE
• MANUAL 81

• NEW
INITIATIVES
 TNS TNS

GAP MATRIX
RADAR
ANALYSIS
DIAGRAM

TNI TNI MATRIX

OVER ALL PLAN

DEPARTMENTAL PLAN INDIVIDUAL PLAN

PLAN

TOTAL COMPLIANCE ATTENDANCE

1. FEEDBACK FROM
EFFECTIVENESS FIELD.

2. TEST REPORT

455 RECRUITMENTS

82
Meaning and definition2

The human resources are the most important assets of an organization The success or failure of

an organization is largely dependent on the caliber of the people working therein Without positive

and creative contributions from people organizatio ns cannot progress and prosper In order to

achieve the goals or the activities of an organization therefore they need to recruit people with

requisite skills qualifications and experience Wh ile doing so they have to keep the present as well

as future requirements of the organization in mind Once the required number and kind of human

resources are determined the management has to find places where the required human resources

are;will be available and also find means of attracting them towards the organization before

selecting suitable candidates for jobs Recruitment is defined as ― A process to discover the

sources of man power to meet the requirements of the staffing schedule and to employ effective

measures for attracting that man power in adequate numbers to facilitate effective selection of an

efficient work force

Objectives of recruitment

Some of the objectives of recruitment are2

To attract people with multi&dimensional skills and experiences that suits the present and
future organizational strategies

To induct outsiders with a new perspective to lead the company

To infuse fresh blood at all levels of the organization

To devise methodologies for assessing psychological traits

Process of Recruitment2

83
 Recruitment refers the process of identifying and attracting job seekers so as to build a pool of
qualifies applicants This process comprises of five interrelated stages viz

Planning

Strategy development

Searching

Evaluation and control

The ideal recruitment process is the one which attracts relatively larger number of qualified

applicants who will survive the screening process and accept positions with the organization when

offered to approach the ideal people individuals r esponsible for recruitment process must know

how many types of employees are needed where and h ow to look for individuals with appropriate

qualifications and interests what inducements to u se for various types of applicants group how to

distinguish applicants who are unqualified from those who have a reasonable chance of success

and how to evaluate their work

456 SELECTION

84
Definition

Selection is defined as the process of differentiating applicants in order to identify and hire those
with a greater likelihood of success in a job The objective of selection decision is basically picking
an applicant from a pool of applicants who has the appropriate qualifications and competency to do
the job The selection procedure cannot be effective until and unless

Requirements of the job to be filled have been clearly specified

Employee specifications physical mental social behavioral etc have been clearly

specified

Candidates for screening have been attracted Selection process is preferable because2

It is easier for applicant as they can send their applications to a single centralized
department;agency

It facilitates contacts with applicants because issues pertaining to employment can be

cleared through one central location

It helps operating managers to concentrate on their operating responsibilities This is helpful

during peak operating period

It can provide for better selection because hiring is done by specialist trained in staffing
techniques

The applicant is better assured of consideration for a greater variety of jobs

Hiring cost may be cut because duplication of efforts is minimized

Selection Process2

85
The selection process consists of the following steps2

9 ﾤ Application form3 Many companies formulate their own style of application form depending
upon the size and nature of business carried on ty pe and level of the job etc Information is
generally required on the following items in the form2 personal background educational
attainments work experience references etc

= ﾤ Written test 2 Written test is conducted for the qualified candidates after they are screened
on the basis of application form to measure the candidates ability towards the job his aptitude
reasoning knowledge in various disciplines Englis h language etc

:ﾤ Preliminary Interview3 The next step that tag along the selection procedure is a preliminary
interview wherein the applications are scrutinized so as to eliminate unqualified applications
Preliminary Interviews are short This interview thus provides information about the candidate
related to the job or personal specifications

> ﾤ Selection Test3 After passing through the interview the next stage that applicant has to
prove himself on are the selection tests There are different types of selection tests for different
levels of the organization and that too is further differentiated within different types of organizations

Some of the most common and well&known tests that an applicant has to go through areM

a Aptitude test2 ; An aptitude test is a systematic means of testing a job candidate>s abilities
to perform specific tasks and react to a range of different situations The tests each have a
standardised method of administration and scoring with the results quantified and compared with
all other test takers

b Personality tests2 This is common mostly for the higher levels of management are given to
measure a prospective employee‘s motivation to function in a particular working environment

86
c Internal test2 To measure an individual‘s activity preferences

d Graphology Test2 is an art wherein the individual‘s handwriting is seen and accordingly his
personality traits are derived by the way he writes

e Polygraph Test2 Are designed to ensure accuracy of the information given in the applications

f Medical Tests2 Reveal physical fitness of the candidate

g Drug test2 Help to ensure the presence of illegal or Performance& affecting drugs

4 References and background checks2 Many employer request names address and
telephone numbers or references for the purpose of verifying information and perhaps gaining
additional background information on an applicant

5 Selection Decision2 After collecting data from all the preceding steps this is the most

crucial step in the entire selection process The main difference between the preceding stages and
this is that former is used to short list the number of candidates and later one is to make a final
decision from the pool of individuals who pass the tests interviews and reference checks The view
of line manager will be generally considered in the final selection because it is he;she who is
responsible for the performance of the new employee The HR manager plays a crucial role in the
final decision

6 Physical Examination2 After the selection decision and before the job offer is made the
candidate is required to undergo a physical fitness test The result of the medical fitness test is

87
recorded in a statement and is preserved in the personal records The main objectives of this test
are as follows2

To detect if the individual carries any infectious diseases

To determine whether an applicant is physically fit to perform the work

It helps to determine if there are any physical capabilities which differentiate successful and
less successful employees

Medical checkup protects applicants with health defects from undertaking work that could
be detrimental to them or might otherwise endanger the employer‘s property

Last but not the least such examination will prote ct the employer from workers
compensation claims that are not valid because the injuries or illness was present when the
employee was hired

4 Job offer2 The next step is selection process is Job offer for those applicants who had
passed the previous stage Job offer is made through a letter of appointment Such a letter usually
contains the date by which the appointee must report on duty

Appointee must be given a reasonable time for reporting because it may be quite possible that the
appointee is employed in some other company or must be residing in some other city and for such
other reasons Company may also want the appointee to delay in joining the job because the job
may require undergoing some training program

5 Contract of employment2 After the job offer is made and the candidates accept the
offer certain documents need to be executed by the employer and the candidate One such
document is Attestation form This form contains vital details about the candidate which are
authenticated and attested by him;her which could be used for future reference Another

88
document is contract of employment This document contains the terms and conditions of
employment like designation perks term of job and so on The information written in the contract
may vary according to the level of the job The main drawback of the contract is that it is difficult to
enforce them

6 Concluding the selection process2 The selection process will not end with executing
the employment contract The step is reassuring the candidates who have not been selected Such
candidates must be told that they were not selected not because of any serious deficiencies in their
personalities but because their profiles did not match the requirements of the organization

9 Evaluation of selection process2 The broad test if the effectiveness of the selection
process is the quality of the personnel is hired An organization must have competent and
committed personnel The selection process if prop erly done will ensure availability of such
employees Audit must be conducted by the people who work independent of the HR department

New methods of selection3

9 ﾤ :C@ degree selection or participative selection3

Normally supervisors administer the selection test and interview They judge the fit between the job
and the candidate But the employee skills knowled ge and performance affect not only superiors

89
but also subordinates and the employees of the same level Hence the organization started
involving the subordinates and the employees of the same level in administrating the employment
tests and interviews This type of selection program is called 6I: degree program

=ﾤ Employee leasing3

The client company leases employees from a third party not on temporary basis but on a full time
basis and for long help An interesting feature is that the client company need not perform
personnel activities such as hiring compensation or record keeping Employees working elsewhere
are leased They are not directly employed by the company where they are working Employees
not recruited by one client are sent to another

:ﾤ Selection by invitation3

Management observes the performance of the key executives of competitors If the performance of
the key executives is excellent or the key executives are the change agents the management
invites them to join the organization by offering attractive salary and benefits Thus the significan t
performance of the executives forms basis for selecting them by invitation

CHAPTER;9:

46: HRM ISSUES IN TATA STEEL LTD

90
Background2

Among the services classified under the Tata son’s services definition Tata steel ltd is one of the

major and reputed parts of Tata group Tata steel industry ltd in India is one of the most diversified

and heterogeneous in terms of ownershipM co&existence of private and public sector is one of the

best examples of peaceful co&existence of two entirely different cultural systems in the services

sector Coupled with that the country has a large number of steel industries with altogether a

different work culture and climate The simultaneous existence of so many types of work ethos

systems and processes are truly symbolic of the great Indian unity amongst diversity

Notwithstanding the fact that lots of efforts have gone into bringing technological . process

congruence it is really unfortunate that very litt le has been done on the human resource front in

this regard Unfortunately Tata steel has been the biggest victim being governed by outdated .

prohibitive sets of government guidelines The Management often complains lack of adequate

power and flexibilityM the Trade Unions often look at any directional change with a sense of

suspicionM majority of the workforce remains in dream&world of the pre&liberalized scenario of

work security The result is that Tata steel is least concerned about human resource management

and reforms there to and consequently remains under&productive Though renaming of Personnel

departments to HR departments took place quite a few years ago in Tata steel Ltd the work

processes . culture in many of them till today remain outdated and are not in a position to meet

changing expectations of the human talent within The scope of this is limited to address some of

the fundamental issues in areas of human resource management front in the public sector steel

industries in India

CHAPTER&49

91
49: LEAVE AND SUPPORT SCHEME RUN BY THE HRM TATA

STEEL LTD &JAMSHEDPUR

494 Types of Leaves2

4 Privilege Leave

5 Sick Leave

6 Casual Leave;Festival Leave

9 Paid Holidays

J Relocation Leave for New Hires

I Convocation Leave

H Additional Privilege Leave

F Maternity Leave

K Paternity Leave

4: Adoption Leave

44 Special Leave

45 Leave without Pay

4 Privilege Leave2&

92
All officers will be given 5J days of PL for every completed month of service Officers joining on or
before the 4Jth of a month will be given 5J days of PL and others will be given 45J days of PL

Features2

PL can be combined with any other type of leave except self&certified Sick Leave

Advance PL is not available PL will be given only after an officer has worked for a month

PL will not be accrued for period of leave without pay LWOP

5 Sick Leave2&

Sick leave or paid sick days or sick pay is time off from work that workers can use to stay home
to address their health and safety needs without losing pay Paid sick leave is a statutory
requirement in many nations

All officers will be given 4: days of SL on full pay every year This will be given at the beginning of
every year in advance for the year Officers join ing in the middle of the year will be given
proportionate SL

Features2

SL can be availed on production of appropriate medical certificates from company doctor In

case of locations where company doctors are not available medical certificates have to be
certified by registered medical practitioner

SL can be self&certified for a maximum period of 5 continuous days up to 6 times a year

Officers availing self&certified SL must keep their departmental heads informed of

their absence

Self&certified SL cannot be combined with any other type of leave other than SL

Self&certified SL can be availed only if the officer is in his location of posting

93
 Weekly off&days and paid holidays falling within the leave period will be counted as
leaves Accumulation2

Accumulation limit for SL to be carried forward to the next year is K: days on full pay SLs
in excess of K: days will lapse at the end of the year

6 Casual Leave;Festival Leave2&

Casual leave is provided to to take care of urgent and unseen matters like child has fallen down
in school and you get call from school Casual Leave CL is granted for certain unforeseen situation
or were you are requiring to go for one or two days leaves to attend to personal matters and not
for vacation In case of casual leave normally company’s strict maximum to 6 days in a month In
such cases the person has to take the permission in advance

All officers will be given a total of 4: days each year under CL.FL together This will be given at
the beginning of every year as an advance Officers joining in the middle of the year will be given
proportionate CL;FL

9 Paid Holidays

Paid holidays paid vacation and paid sick leave a re determined by the employer or in a
represented workplace by the employee>s representa tive often a union in negotiation with
an employer

Paid holidays may also be negotiated by employees who have a contract with employersM
these are often senior level employees

All officers are entitled to a holiday with pay on the National holidays and certain other
pre&decided days provided their services can be spared

J Relocation Leave for New Hires 2&

94
All new hires will be given H continuous days of Relocation Leave at the time of joining This leave
is to be utilized for the purpose of supporting relocation for example& transfer of household goods
from one location to another

Features2

Relocation Leave is valid for one year from the date of joining Tata Steel Limited

It cannot be grouped with any other type of leave

Weekly off&days and paid holidays falling within the leave period will be counted as leaves

I Convocation Leave2&

Campus recruits are eligible for 6 continuous days of Convocation Leave in the first year of
service This leave is to be utilized for the purpose of attending convocation

Features2

Convocation Leave is valid for one year from the date of joining Tata Steel Limited

Intimation from the campus needs to be presented for availing Convocation Leave

Convocation Leave cannot be accumulated It will lapse if not availed within one year from
the date of joining

H Additional Privilege Leave APL

Lady Officers with children of J years of age or below are entitled to APL of 4J days on full pay
every year This will be given at the beginning of every year in advance for the year Officers joining
in the middle of the year will be given proportionate APL APL is to be utilized if the child is sick
and needs full time attention of his;her mother

F Maternity Leave

95
Eligible lady officers are entitled to Maternity leave with full pay for a total period of 4F weeks All
lady officers who have been employed with Tata Steel Limited for a minimum of F: days will be
eligible for this leave

Features2

Leave of maximum period of one month in addition t o 4F weeks maternity leave will be
allowed for illness certified by a registered medical practitioner arising out of pregnancy
delivery premature birth of child or miscarriage This will be treated as Maternity Leave

In case of miscarriage officers will be granted I weeks of leave from the date of miscarriage

Paid holidays and weekly&off days falling within the leave period will be counted as leave

Maternity Leave will be forfeited if the officer accepts employment during the period of this
leave

In addition to the 4F weeks up to a maximum of fou r months leave will be granted on

medical certificate to the officer who is unable to resume duty on the expiry of maternity
leave This leave will be deducted from the officer’s leave balance CL;PL and on exhaustion
of the leave balance it will be conside red as Leave Without Pay LWOP

K Paternity Leave

Eligible male officers are entitled to Paternity leave with full pay up to a maximum of 4: continuous
days All permanent male officers who have been employed with Tata Steel Limited for a minimum
of 6: days will be eligible for this leave It can be availed in the following cases2

New born babies Within I months from the date of birth of the child

Adoption cases up to the child being J years of age Within I months from the
commencement of foster care period

96
Features2

Paternity leave can be combined with any other type of leave

It can be availed up to a maximum of two times during the officer’s services with Tata Steel
Limited

In case legal adoption of the child is not granted by court paternity leave already granted to
the male officers will be forfeited It will be adjusted against the officer’s own leave
PL;LWOP

4: Adoption Leave

Eligible lady officers are entitled to Adoption leave with full pay up to a maximum of 45 weeks on
adoption of a child up to J years of age All permanent lady officers who have been employed with
Tata Steel Limited for a minimum of F: days will be eligible for this leave All lady officers
irrespective of their marital status are eligible for this leave

Features2

Officer can avail adoption leave up to a maximum of 5 times during her services with Tata
Steel Limited

It has to be availed in one instance without any break

Paid holidays and weekly off&days falling within the leave period will be counted as leave

It will be admissible only upon receipt of pre&adoption foster care affidavit along with
application for adoption leave subject to submission of the legal adoption deed ; decree
subsequently

97
 It will commence from the date of start of foster care period as mentioned in the said
affidavit

In case the consent of legal child adoption is not granted by the court adoption leave
already granted to the officer will be forfeited It will be adjusted against the officer’s own
leave PL and LWOP

44 Special Leave

All officers are eligible for Special Leave This leave will be granted at the discretion of the
management for the following reasons2

Professional and Academic Meetings and Conferences& Extending to the President and the
Secretary of Executive Committee or Sub&Committee of all Indian Asian or International
bodies for attending the official meetings within India

Blood Donation& One day’s special leave is granted for donating blood only at company
approved hospitals and Blood Banks Normally offic ers who are on duty are not permitted
to go to donate blood but in exceptional circumsta nces they may be allowed to go for
blood donation while on duty In such cases they are not required to come for the balance of
their shift;day and are granted special leave for the fo llowing day also

Civil Defense& To undergo Civil Defense Training provided his attendance is certified by
the Civil Defense authorities

45 Leave Without Pay LWOP

98
In addition to all the leaves that the officers are entitled to they may be granted leave without pay
subject to the discretion of the management in the following cases2

General

Up to a maximum of two weeks after completion of one year of service

Up to a maximum of four weeks after completion of two years of service

Up to a maximum of six weeks after completion of three years of service

Medical

Up to a maximum of eighteen months to officers suffering from leprosy or tuberculosis or

cancer

Up to a maximum of one year in other case

495 SUPPORT SCHEME ORGANISE BY TATA STEEL LTD

There are No of support scheme run by Tata steel for officer and an employee Because Tata steel
recognize that its people are the primary source of its competitiveness It will pursue management
practices design to enrich the quality of life of its employees develop there potential and maximize
their productivity

FAMILY SUPPORT SCHEME

99
A OBJECTIVE2

To take care of the bereaved family maintain the standard of living in the event of death of an
employee arising out of accident leading to IOW ; IOD or death during treatment at hospital arising
out of accident leading to IOW; IOD while on duty and provide a feeling of assurance to the
employee that even in his;her absence due to aforementioned unfortunate happening the Company
will support his;her family

B SCOPE2

The scheme will cover all permanent employees at respective location wherever this scheme
is extended

C ELIGIBILITY2

Employment to the family members Spouse ; Nominee of the employee who die while in service
arising out of accident leading to Injury on Work IOW ; Injury on Duty IOD or death during
treatment at hospital arising out of accident leading to IOW; IOD while on duty

Dual Career Path for Specialists R.D Technology G roups Automation

Purpose

To provide an option of Dual Career Path for Officers in specialist positions

Objective

100
 To provide options to specialists to choose their ideal career path in ‘R Series’ . ‘IL Series’ based
on their personal preference and capacitiesM b to provide movement opportunities between the
two ladders of ‘IL Managerial’ and ‘R Expert Series’

Directed Learning Study Leave

Purpose

Create Learning opportunities which will assist in2

a Improving the capabilities of our officers and employees to do their job better and

b Create Subject Matter Experts in line with current and future needs to help the organization
attain Technological Leadership

Experienced Professional

This External Recruitment and Selection Policy contain the policy of conduct observed by Tata
Steel India in the recruitment and selection process The purpose of the policy is to provide a
standard for the recruitment and selection procedure The policy is set up chronologically from the
time of seeking approval for external recruitment to rolling out the appointment letter

EMPLOYEES’ FAMILY BENEFIT SCHEM

101
 OBJECTIVE

To provide monetary benefit to family members of an employee who dies while in service and to
the employees in case of their permanent total disablement;permanent medical unfitness including
IOW;IOD cases and to those who are found unfit for their original job as certified by the medical
authorities of the Company The objective of the policy is to outline a process to ensure the external
recruitment . selection of qualified and experienced personnel in effective and efficient way thereby
achieving the goal of becomi ng “Employer of Choice”

SCOPE

The scheme will cover all permanent employees who have completed minimum of one year’s
permanent service

4 CONTINUATION OF SALARY FOR NEXT SIX MONTHS2

a Payment of salary including allowances for next six months to the spouse; nominee in whose
favor the claim has been established from the next date after the date of expiry of the employee
Benefit of annual increments and revision in Dearness Allowance if any will be given as if the
employee was on duty for the next six months period If the employee was allotted a quarter then
the spouse; nominee will continue to retain the quarter and applicable rent and electricity tariff will
be charged at employee rate

EMPLOYMENT TO FAMILY MEMBERS SPOUSE ; NOMINEE

102
The employment to family members of the employee spouse ; nominee who die while in service
arising out of accident leading to IOW ; IOD will be in a grade; level in commensuration with the
qualification and experience of the spouse or nominee The grade ; level in which the spouse or
nominee will be appointed will be decided by a panel of Management Team appointed by VP HRM
who would interview the candidate and their decision will be final

PENSION2

After being paid normal salary including allowances for first six months after the date of expiry if

the employee as per point D4 a above the spouse ; nominee will be eligible for a monthly pension

after six months from the month the employ ee expired The Pension amount to the spouse or

nominee in case of no spouse will be equivalent to the last Basic W DA of the deceased employee

paid to the spouse; nominee as per point D4 a above which will be paid till the spouse; nominee

attains I: sixty years age In case the nominee is made beneficiary to receive the monthly pension

and if the spouse of the employee does not exist then the nominee will get full amount of pension

However in case t he spouse of the employee is existing then the Pension amount to the nominee

will be equivalent to HJN of the last Basic W DA of the deceased employee paid to the spouse;

nominee as per point D4 a above which will be paid till the nominee attains I: sixty years age and

the Pension amount to the spouse will be equivalent to 5JN of the last Basic W DA of the

deceased employee paid to the spouse; nominee as per point D4 a above which will be paid till

the spouse attains I: sixty years age

PENSION CUM EMPLOYMENT

103
 In case the children of employee are young or even above 4F years of age and below 5J years

of age and are presently studying and the spouse; nominee of the employee desires them to

continue with their studies and opts for employment of eldest son; eldest daughter before they

complete 5J years of age then in the interim till employment of the eldest son; eldest daughter in

case of no son the deceased employee’s spouse or nominee in case of no spouse will be given

pension under FSS The pension amount will be equivalent to the last Basic W DA of the deceased

employee paid to the spouse; nominee as per point D4 a above which will be paid till the spouse;

nominee opts for employment of eldest son; eldest daughter before they complete 5J years of age

104
105
 CHAPTER;9A

9A ﾤ@ ORGANIZATIONAL PROFILE OF TATA STEEL

LTD

COMPANY OVERVIEW

Established in Jamshedpur in 4K:H Tata Steel a Co mpany that took shape from the vision of

Jamsetji N Tata is today a global business enterp rise having products and services in over 4J:

countries Being the world’s second&most geographically diversified steel producer Tata steel

operate in 5I countries have commercial presence i n over J: countries and have employees

spread across five continents Tata Steel is among the top global steel companies with an annual

crude steel capacity of 5HJ MnTPA The Tata Steel Group recorded a consolidated turnover of

`44H95: crore in FY5:4H

Tata Steel India has an end&to&end value chain that extends from mining to finished steel
goods catering to an array of market segments The Jamshedpur facility has an annual crude
steel capacity of 4: MnTPA and the Kalinganagar plant has a capacity of 6 MnTPA

Tata steel embrace different skills celebrate diversity and strive for constant innovation while
continuing to act responsibly in the use of natural resources Above all Tata steel commitment to
give back to the society helps us make Tata steel vision of sustainable growth a reality
106
VISION

Tata Steel aspire to be the global steel industry benchmark for ‘Value Creation> and
>Corporate Citizenship’

MISSION

Consistent with the vision and values of the Founder Jamsetji Tata Tata Steel strives to
strengthen India’s industrial base through the effective utilisation of staff and materials The means
envisaged to achieve this are high technology and productivity consistent with modern
management practices

Tata Steel recognises that while honesty and integrity are the essential ingredients of a strong
and stable enterprise profitability provides the main spark for economic activity

Overall the Company seeks to scale the heights of excellence in all that it does in an atmosphere
free from fear and thereby reaffirms its faith in democratic values

THE CORE VALUES OF TATA STEEL

INTEGRITY

We must conduct our business fairly with honesty a nd transparency Everything we do must stand
the test of public scrutiny

EXCELLENCE

We must constantly strive to achieve the highest possible standards in our day&to&day work and
in the quality of the goods and services we provide

107
UNITY

We must work cohesively with our colleagues across the group and with our customers and
partners to build strong relationships based on to lerance understanding and mutual
cooperation

RESPONSIBILITY

We must be responsible and responsive to the countries communities and environments in which
we work always ensuring that what comes from the p eople goes back to the people many times
over

PIONEERING

We will be bold and agile courageously taking on c hallenges using deep customer insight
to develop innovativeness

108
4J4 Ownership Structure Tata Steel

Tata Steel is headquartered in Mumbai India Tata Steel ownership as of March 64 5:4H is
diversely held as depicted

• INSTITUTIONS&9KN

• PROMOTERS&64N

• RETAIL SHAREHOLDERS&5:N

Highlights of FY5:4H

DELIVERIES & 56FF MnT REVENUE&`4 4H95: Cr

EBITDA&`4H:5J Cr EMPLOYEES&H::::W

NEW PRODUCTS LAUNCHED&J4

NUMBER OF LIVES IMPACTED THROUGH CSR&44 MnW

109
4J5 Leadership Structure

Tata steel have a well&defined operating structure to ensure that the Company is on track to achieve

its vision and strategic objectives Tata steel executive management rests with Mr T V Narendran CEO

and Managing Director for Tata steel Indian and South&East Asian operations and Mr Koushik

Chatterjee Group Executive Director F inance Corporate . Europe Mr Narendran and Mr Chatterjee

operationally and administrativ ely report to Tata Sons Tata Group Chairman Mr N Chandrasekaran

and functionally report to the Board of DirectorsThe executive team responsible for operations such as

Raw Materials S teel Making Sales and Marketing among others reports to the Managing Director

Corporate functions such as Finance and Accounts Legal Secretarial Communications and Regulatory

Affairs among others report to the Group Executive Director Finance Corporate and Europe We have a

strong diverse highly qualified and richly experienced leadership team with a track record of excellence

and passion for performance

110
4J6 KEY PERFORMANCE INDICATORS Tata Steel India

PERCENTAGE OF SKILLED MANPOWER N

FY4H & KKKK FY4I & K6K:

FY4J & K44: FY49 &IKI:

FY46 & NAX

EMPLOYEES TRAINING MAN&DAYS

FY4H & 669:J: FY4I & 5I6:J:

FY4J & 5644HH FY49 & 4HHIJI

FY46 & 4H9J:J

TRAINING PER EMPLOYEE MAN&DAYS

FY4H & 54K FY4I JH:

&
FY4J& I5: FY49 F6K
&
FY46 KJ:

INVESTMENT IN EMPLOYEE TRAINING AND DEVELOPMENT ` CRORE

FY4H & J5JJ FY4I & 96:H

FY4J & 95KK FY49 & 94J4

FY46 & 9469

111
EMPLOYEES INVOLVED IN IMPROVEMENT ACTIVITIES N

FY4H K5J: FY4I FJ6:

FY4J FK9: FY49 F5::

FY46 HK::

EMPLOYEE PRODUCTIVITY & TSJ TCS; EMPLOYEE; YEAR

FY4H & H5: FY4I & H:4

FY4J & I56 FY49 & JKH

FY46 & J46

4J9 AWARDS AND RECOGNITION

Prime Minister’s Trophy for the ‘Best Performing Integrated Steel Plant’ in the country for
the performance year 5:46&49

Safety and Health Excellence recognition 5:4I in >Leadership> category by World

Steel Association

‘Best Companies to Work for’ 5:4I award in the core sector by Business Today

‘Best Risk Management Practice’ Award in the category of Metals . Mining at the 6rd India
Risk Management Awards 5:4H

‘World’s Most Ethical Company Award‘5:4H Human Capital & Recognised for the fifth
time by Ethisphere

Conferred the ‘Tata Affirmative Action Programme’ TAAP Jury’s Award Social .
Relationship Capital A 5:4I for the fourth year in succession

112
 CHAPTER&4I

4I: ANALYSIS OF SECONDARY DATA2&

Training and Development Function in Tata Steel Ltd

Department Chief/Head

• TNI

• Training calendar

• Training budget

• Training feedback

• Training manuals

• Approvals/concept paper

1. Module design 1. IT support 1. Training initiative 1. Library mgmt.

2. Module 2. Project/Summer .Internal Books

development training External Journal

3. Internal TNI 3. Induction 2. Concept Newspaper

4. External TNI manual/ppt 2.Dak (In/out)

Development database
5. Product/Process 4.Training feedback or
evaluation 3. Write-ups& Briefing 3. Record
Training 5. Admin task 4. Training Evaluation Maintenance

6. Project/Summer 6. Database 5. PD e-manual 4. Admin follows up

Training management 6. Project/summer 5. Bulletin/Board

7. HRIS support 7. MIS-T&D training Management

113
 CHAPTER;9E

9E ﾤ@ Risk Matrix of Tata steel Jamshedpur ﾤ

114
115
 CHAPTER;9F

4F4 BCG Matrix Analysis of Tata Steel Ltd

BCG Matrix Analysis of Tata Steel Ltd2 BCG Growth matrix analysis is developed by Boston
Consulting Group of USA and universally known as BCG Matrix takes a two dimensional views
Those are industry growth rate and relative market share Tata companies are significantly involved
in other segments like2 Tata Steel Tata Motors Ta ta Power Tata Global Beverages Titan Tata
Chemicals Tata Consultancy Services Tata Teleserv ices Tata Communications and Indian Hotel
Companies

STAR CATEGORY2&

The Ferro alloys and minerals division in TATA in the TATA STEEL LTD would fall into the

category of stars of the BCG Matrix The production in this division is 46:5millions tones and the

overall sales has exceeded to 4J:F million tones Infrastructural investment in Asia resulted in

improvement in the demand for stainless steel Chrome Alloys exports including charge chrome

from TATA Steel KZN PTE LTD touched an all&time high and the division recorded its highest

ever global market share of IN inFY4: The first oversees hub of TSL was established in South

Korea In India our Ferro Alloys and minerals division is the market leader in Ferro Chrome

Business with a market share of around 5HN Manganese Alloys sales recorded an all&time high

in the financial year 5::K&5:4: and TATA Steel attained the status of being the largest producer of

Manganese Alloys in India

116
CASH COW CATEGORY2&

The steel division of the company falls into the category of cash cow of the BCG Matrix The
production is I96K million tones but the overall sales are I4H: million tones Despite sales being
lower than the production in the FY 4: The overall sales grew by4FN over last year J565 million
tones in the FY:K

QUESTION MARK CATEGORY2&

The bearing division and the tubes division fall into the category of question mark in the BCG
Matrix They are growing rapidly but have low market product share They have the potential to
gain market share and become a star It can also become cash cow when the market growth
slows

DOG CATEGORY2&

None of the divisions of the TATA Steel can be classified into dogs All of them have good market
share and good market growth

117
9F ﾤ=ﾤ BCG MATRIX OF TATA GROUP

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4F6 SWOT ANALYSIS OF TATA STEEL

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 CHAPTER&4K

9H ﾤ@ KEY FINDINGS

Mostly all the Tata steel Employees are well aware of the role and importance of the training
They are self&motivated to attend such training program as it will result in their skill

enhancement . improving their interpersonal skill

Corporate HR Tata Steel Ltd time to time training is provided to all the Employees and it is
continuous process

Two types of training are provided to the Employees by Tata Steel Ltd &induction
training and soft skill development training

Questionnaire is the most popular mean of evaluating the training program in Tata
Steel Ltd

Most of the Employees feel that interview is the most appropriate method of evaluating
the training program

Post training evaluation focus on result rather than on the effort expended in conducting
the training and it worth the time money and effort

Most of the participants are benefitted by giving feedback after attended the training It
motivated them to do better helped them to increas e their job performance and is an aid
to future planning

In Tata Steel Ltd post training evaluation is use d to identify the effectiveness and valuation
of training program to identify the ROIreturn on investment to identify the need of retraining
and to provide the points to improve the training

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9H ﾤ 9 SUGGESTIONS AND RECOMMENDATIONS

The management must commit itself to allocate major resources and adequate time
to training

Ensure that training contribute to competitive strategies of the firm Different strategies need
different HR skill for implementation Let training help employees at all levels acquire the
needed skill

Ensure that a comprehensive and systematic approach to training exists and training
and retraining are done at all levels on a continuous and on&going basis

Ensure that there is proper linkage among organizational operational and individual
training needs

Skill based training product;process training should also be provided

Besides questionnaire other methods of post training evaluation should also be used
like interviews self&diaries observation and supplemen t test

The evaluation procedure must be implemented concerning trainer trainee and subject

Post training feedback has to be continuous and should also be taken from line
manager;superior . from peers to find out the effectiveness and valuation of training

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9H ﾤ= LIMITATION OF THE STUDY

The study is limited to the Tata steel Ltd AJamshedpur Lime plant department So the
study is subject to the limitation of area

The time period of the study was only Eight weeks which may provide a deceptive picture
in comparison of the study based on long run

Sampling size was of F: because only these people had attended soft skill development
training and skill based development training in lime plant department

Tata steel Ltd &Jamshedpur provides soft skill development training and skill based
product;process training So we can evaluate the basis of skill based training product
process training and soft skill based trainings

The study is based only on secondary . primary data so lack of keen observations and
interactions were also the limiting factors in the proper conclusion of the study

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9H ﾤ: CONCLUSION

Today Tata steel focus on designing programs and p rocess and services to attract develop and
retain top talent Utilizing the latest technologies HR team has launched sophisticated online
systems that provide the employees with details on benefits compensation special programs
and internal job opportunities As a global employee population continues to grow these cutting
edge activities are increasingly important to the deliver world&class HR solution

The core function of HRD in the Tata steel industry is to facilitate performance improvement

measured not only in terms of financial indicators of operational efficiency but also in terms of the

quality of Product Processes services provided Fa ctors like skills attitudes and knowledge of the

human capital play a crucial role in determining the competitiveness of the steel sector The quality

of human resources indicates the ability of Tata steel to deliver value to customers Capital and

technology are replicable but not the human capital which needs to be valued as a highly valuable

resource for achieving that competitive edge The primary emphasis needs to be on integrating

human resource management strategies with the business strategy HRM strategies include

managing change creating commitment achieving fle xibility and improving teamwork The other

processes representing the overt aspects of HRM are recruitment placement and performance

Management

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BIBLIOGRAPHY

BOOKS

• PERSONNAL MANAGEMENT;HRM & BHATIA SK

• HRM2 Contemporary Prospective A BREADWELL IAN HOL DEN LEN

• HRM . INDUSTIAL RELATIONS A SUBBA RAO

• CASE AND EXERCIES IN HRM A GEORGE STEVENS

• PERSONNEL MANAGEMENT A MAMORIA CB

WEBSITE

• www ﾤ Tatasteel ﾤ com

• www ﾤ google ﾤ co ﾤ in

• www ﾤ personnel ﾤ online ﾤ com

• www ﾤ articlebase ﾤ com

• www ﾤ humanmatrics ﾤ com

• www ﾤ bussinessweak ﾤ com

SPEECIAL THANKS

Mrs ﾤ Kolka Dutta %Manager HR' Tata steel Lime plant

Mr ﾤ Avijit Bose %Head' Tata steel Lime plant

Mr ﾤ Rajiv Malhotra %Chief' Tata steel Lime plant

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