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Steel Ltd
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 1
CHAPTER -1
RESEARCH DESIGN
Steel Ltd
INTRODUCTION
Human Resource management (HRM) is concerned with the "people" dimensions
in management. Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to high level of performance and ensuring that
they continue to .maintain their commitment to the organization are essential for
achieving organizational objective.
The study includes types and process of HRD programs organized in JSW and the relationship
between program and its effectiveness on employee performance and to know the response of the
trainees about the training effectiveness
The study was conducted systematically. The primary data required for the study was
obtained from the employees with the help of structured questionnaire which was given
to 50 employees randomly. The secondary data was collected through internet, company
hand book, journals.
This study elucidates the facts on the awareness of the employees with regard to the
training program, types of HRD Program, effectiveness of Training Program etc.,
prevailing in JSW. This study reveals that majority of the employees have attended
Managerial Training program of sophisticated nature with good faculties. It further
reveals that the Training Program conducted in the said organization have been educative
and interesting and also have increase their inner skills. Finally the management as well
HR Department concerned in JSW is doing their job judiciously with regard to Training
and its Effectiveness activities. The researcher of this study is convinced that this study
would be an eye-opener for their furtherance in the field of their Training activities
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 2
Steel Ltd
STATEMENT OF THE PROBLEM
A study of HRD practices that are carried out in the organization and its impact
on the performance of the organization.
OBJECTIVES OF THE STUDY
To study the need and importance of HRD practices in JSW.
To study Effectiveness of job satisfaction in JSW.
To Evaluate effectiveness of participative management in JSW.
PROJECT LAYOUT
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 3
Steel Ltd
SCOPE OF THE STUDY
A detailed Survey was conducted about employee participation among sample of
employees to know the level of participation of employees in decision making..
The present study is undertaken in the area of participative management in order to
motivate employees by giving them authority to contribute their skills, talent and
knowledge.
METHODOLOGY USED
The present study is conducted at the factory level. .
SAMPLE SIZE:
A sample of 50 respondents is selected using non-random convenience sampling
method. The respondents have been selected from the thirteen departments in the
company. The employees who attended the training programs and involved to identify
the rate of effectiveness of training program.
SOURCE OF DATA
Primary Source Primary data was collected through questionnaires, interview
and discussion with the concerned Employees, Executives and Managers in the JSW.
Secondary Source: The secondary data is collected from both internal and external
sources .The internal source includes Company’s annual reports, broachers, publications
etc. External sources include books, journals, magazines, news papers, and internet.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 4
Steel Ltd
PROCEDURE
The data was collected by survey through questionnaire. Participants were
selected from all the 13 departments. the employees who have joined works committee
and joint councils. The co-ordinator was informed well in advance about the selection of
the participants.
The co-ordinator arranged meeting with the participants. The participants were explained
about the objective of the survey and question was explained to avoid any ambiguity and
Participants were assured of the confidentiality of their identity and response to avoid
biases This helped us in getting free and frank answers from the participants.
LIMITATIONS OF THE STUDY
Despite of all possible efforts to make the analysis more scientific and
comprehensive there are certain parameters, such as competency level of the participants
were not taken into account, which could be a contributory factory.
The major limitations of the study are:
This study is confined to the JSW, Toranagallu
There is every possibilities of biased opinion in the primary data.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 5
Steel Ltd
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 6
CHAPTER-2INDUSTRY PROFILE
Steel Ltd
INDUSTRY PROFILE
Steel Industry in India is on an upswing because of the strong global and domestic
demand. India's rapid economic growth and soaring demand by sectors like
infrastructure, real estate and automobiles, at home and abroad, has put Indian steel
industry on the global map. According to the latest report by International Iron and Steel
Institute (IISI), India is seven largest steel producers in the world
The origin of the modern Indian steel industry can be traced back to 1953 when a contract
for the construction of an integrated steelworks in Rourkela, Orissa was signed between
the Indian government and the German companies Fried Krupp und Demag AG. The
initial plan was an annual capacity of 500,000 tonnes, but this was subsequently raised to
1 million tonnes. The capacity of Rourkela Steel Plant (RSP), which belongs to the SAIL
(Steel Authority of India Ltd.) group, is presently about 2 million tonnes. At a very early
stage the former USSR and a British consortium also showed an interest in establishing a
modern steel industry in India. This resulted in the Soviet-aided building of a steel mill
with a capacity of 1 million tonnes in Bhilai and the British-backed construction in
Durgapur of a foundry which also has a million tonne capacity.
.Global Scenario
In 2010 the World Crude Steel output reached 1364.5 million metric tons and
showed a growth of 7.5% over the previous year. It is the fifth consecutive year
that world crude steel production grew by more than 7%.
China remained the world’s largest Crude Steel producer in 2010 also (500.00
million metric tons) followed by Japan (120.47 million metric tons) and USA
(100.20 million metric tons). India occupied the 5 th position (61.10 million
metric tons) for the second consecutive year.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 7
Steel Ltd
Domestic Scenario
It has been estimated by certain major investment houses, such as Credit Suisse
that, India’s steel consumption will continue to grow at nearly 16% rate annually,
till 2012, fuelled by demand for construction projects worth US$ 1 trillion. The
scope for raising the total consumption of steel is huge, given that per capita
steel consumption is only 40 kg – compared to 150 kg across the world and 250
kg in China.
The National Steel Policy has envisaged steel production to reach 110 million
tonnes by 2019-20. However, based on the assessment of the current ongoing
projects, both in greenfield and brownfield, Ministry of Steel has projected that
the steel capacity in the county is likely to be 124.06 million tonnes by 2011-12.
Further, based on the status of MOUs signed by the private producers with the
various State Governments, it is expected that India’s steel capacity would be
nearly 293 million tonne by 2020.
Industry Statistics
Government targets to increase the production capacity from 56 million tons annually
to 124 MT in the first phase which will come to an end by 2011 – 12. Currently with
a production of 56 million tones India accounts for over 7% of the total steel
produced globally, while it accounts to about 5% of global steel consumption. The
steel sector in India grew by 5.9% in May 2010. Globally India is the only country to
post a positive overall growth in the production of crude steel at 1.01% for the period
of January – March in 2010
Production
Steel industry was delicensed and decontrolled in 1991 & 1992 respectively.
Today, India is the 7th largest crude steel producer of steel in the world.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 8
Steel Ltd
Last 5 year's production of pig iron and finished (carbon) steel is given below:
(in million tonnes)
Category 2005-06 2006-07 2007-08 2008-09 2009-10
Finished Carbon Steel 44.544 55.416 58.233 59.02 61.10
Opportunities for growth of Iron and Steel in Private Sector
The New Industrial Policy Regime
The New Industrial policy has opened up the iron and steel sector for private investment
by (a) removing it from the list of industries reserved for public sector and (b) exempting
it from compulsory licensing. Imports of foreign technology as well as foreign direct
investment are freely permitted up to certain limits under an automatic route. Ministry of
Steel plays the role of facilitator, providing broad directions and assistance to new and
existing steel plants, in the liberalized scenario.
The Growth Profile
(i) Steel
The liberalization of industrial policy and other initiatives taken by the Government have
given a definite impetus for entry, participation and growth of the private sector in the
steel industry. While the existing units are being modernized/expanded, a large number of
new/greenfield steel plants have also come up in different parts of the country based on
modern, cost effective, state of-the-art technologies.
At present, total (crude) steel making capacity is over 34 million tonnes and India, the
7th largest producer of steel in the world, has to its credit, the capability to produce a
variety of grades and that too, of international quality standards. As per the ratings of the
prestigious " World Steel Dynamics", Indian HR Products are classified in the Tier II
category quality products – a major reason behind their acceptance in the world market.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 9
Steel Ltd
EU, Japan have qualified for the top slot, while countries like South Korea, USA share
the same class as India.
ii) Pig Iron
In pig iron also, the growth has been substantial. Prior to 1991, there was only one unit in
the secondary sector. Post liberalization, the AIFIs have sanctioned 21 new projects with
a total capacity of approx 3.9 million tonnes. Of these, 16 units have already been
commissioned. The production of pig iron has also increased from 1.6 million tonnes in
1991-92 to 5.28 million tonnes in 2002-03. During the year 2003-04, the production of
Pig Iron was 5.221 million tonnes.
SWOT ANALYSIS
Strengths
1. Availability of iron ore and coal: India has abundance of iron ore, coal & other
raw materials required for iron & steel making. It has 4th largest iron ore reserves
(13 bn tons) in the world.
2. Low labor wage rates: India has low unit labor cost, this gets reflected in low
cost of production
3. Abundance of quality manpower: It has 3rd largest pool of technical manpower,
next to United States & erstwhile USSR, capable of understanding and
assimilating new technologies.
4. Mature production base
Weakness
1. Unscientific mining: India is deficient in raw materials required by the steel
industry. Iron ore deposits are finite and there are problems in mining sufficient
amounts of it. India's hard coal deposits are of low quality
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 10
Steel Ltd
2. Low productivity: According to an estimate crude steel output at the biggest
Indian steelmaker is roughly 144 tonnes per worker per year, whereas in Western
Europe the figure is around 600 tonnes.
3. Power shortages: Steel production in India is also hampered by power shortages.
4. Inadequate infrastructure: Insufficient freight capacity and transport
infrastructure impediments to hamper the growth of Indian steel industry
5. Low R&D investments: There are inadequate investments in infrastructure.
6. High cost of debt: Since huge capital investment is required therefore cost of
these dbt is very high.
Opportunities
1. Unexplored rural market: The Indian rural market remains fairly unexposed to
the multi-faceted use of steel.
2. Growing domestic demand: There is enormous scope for increasing
consumption of steel in almost all sectors in India.
3. Export Market Penetration: It is estimated that world steel consumption will
double in next 25yrs. Quality improvement of Indian steel combined with low
cost advantages will definitely help in substantial gain in export market.
4. Consolidation: As global companies have realized the threat of excess supply,
they are looking at M&A (mergers and acquisitions) option to retain market share
and improve margins.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 11
Steel Ltd
Threats
1. Technological change: Technological changes force the industry structure to
change. In India where capital itself is costly, technological obsolescence is a
major threat.
2. Price sensitivity & Demand volatility: The demand for steel is derived demand
and the purchase quantity depends on end-use requirements. The traders are price
sensitive and buy when there are discounts.
3. Dumping of steel by developed countries: High quality products for developed
countries available for imports at competitive prices.
4. Slow Industry Growth
Hurdles
Power shortage hampers the production of steel
Use of outdated process for production
Lags behind in the production of stainless steel
Deficiency of raw materials required by the industry
Labor productivity is low. It is 144 tons per worker per year against 600 tons in Western
Europe as per estimates
inadequate shipment capacity and transport structure
Consumption
India's steel consumption rose 8 per cent in the year ended March 2010, over the same
period a year ago on account of improved demand from sectors like automobile,
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 12
Steel Ltd
infrastructure and housing. The country’s steel consumption increased to 56.3 MT in the
12 months to March 2010 from 52.3 MT in the previous year, as per the Ministry of Steel
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 13
CHAPTER-3COMPANY PROFILE
Steel Ltd
COMPANY PROFILE
JSW is a part of the $ 4 billion O.P. Jindal group, the 4th largest business house
in India, with interests in mining, flat steel, and power, oxygen and port facilities. This
makes us a fully integrated steel plant with products ranging from pellets to Galvanized
Steel, a value addition of over 100 times.
JSW under the leadership of Mr. Sajjan Jindal, share a common mantra for
success. JSW is a dynamic Rs. 9000 crore integrated entity encompassing steel, power,
industrial gases, minerals and port business. It ranks among India's top business houses in
turnover, size and scale of operations. The focus, now, is to achieve a position of
excellence in the global arena and innovate the future for nation building.
A. Back ground and inception of the company:
In the 15th century, Krishnadevaraya (1509-29) ruled the royal Vijayanagara
dynasty located in southern India, famous for its peace and prosperity. Reminiscing the
past glory and grandeur of Vijayanagara, JINDAL VIJAYANAR STEEL LTD., the mega
steel plant has come up at Toranagallu, 29 km from Bellary. The principal promoter of
JVSL is Jisco; both belong to Om Prakash Jindal group having 50 years of experience
in steel industry. JVSL was set up as backward integration facility for Jisco. All the units
of Jindal organization are also promoted by his son's namely-Prithviraj Jindal, Sajjan
Jindal, and Rattan Jindal & Naveen Jindal.
JVSL has an interesting history. Mrs. Indira Gandhi inaugurated this site in 1971,
for an integrated steel plant, which was to be named Vijayanara Steel Plant. From 1971 to
1994, public sector and several private sector units explored the possibility of putting up
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 14
Steel Ltd
the steel plant but none are succeeded, essentially due to inadequate availability of the
most basic inputs, like water.
And power. In 1994, Government of Karnataka approached Jindal who succeeded in
putting of JVSL, largely because they dared to choose not so commercially but most
environment friendly COREX technology for Iron making, as against conventional
process of Blast
furnace. The company was promoted by Jindal Group with participation from Karnataka
State Industrial Investment and Development Corporation LtdNow the company is one of
India’s largest manufactures and exporters of galvanized steel and export to over 80
countries and the company accredited with the ISO:9001 certification for quality
management system, the ISO:14001 for environment management system and
OHSAS:18001 for occupational health and safety management system.
“Where there is a challenge there is Jindal”
“If it is Jindal, it must be first class”
The Philosophy of Jindal South West Foundation is “We Cherish People”
We believe that we must with honesty of purpose, make a difference in the environment
in which we operate. We believe that we must make profits and be good corporate
citizens. We believe in forging bonds with government bodies, NGO’s and the
community at large. We aspire to go beyond monetary contribution for a social cause to
actively participant in building their capacities to forge a sustainable future. We leverage
our skills and expertise in facilitating social development activities. We believe that there
is more to business than making profit. We intend to create wealth for our survival and
sustainability of business in the long run
B. Nature of the business carried:
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 15
Steel Ltd
Until the mid 70's huge chunks of India's stainless steel requirements were met by
imports the challenge was to produce high quality stainless steel at less than world steel
prices. In 1979-80 the Jindal were successful in using Argon Oxygen Decarburization
Converter, a state of art technology development in house.
A process integrating of the different stages in the manufacturing of stainless steel was
successfully done. As a result everything from the conversion of raw material in the
billets and slabs, to hot rolling to strip and plates, as well as cold rolling was done in
house.
India’s only integrated green-field steel project
JSW, a green field integrated steel plant with integrated steel plant with a capacity of 1.60
million ton per annum of hot rolled coils. JSW has collaborated with voest Alpine of
Australia, which will provide a unique advantage in manufacturing and technology.
C. JSW Vision, Mission and Values:-
VISION:
Global recognition for Culture and Quality while nurturing nature and society.
MISSION:
Supporting Nations growth in steel and Power with speed and innovation.
Core Values:
Crystal clear
Passion for excellence
Drive with Leadership
Young thinking
Challenge for Status Quo.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 16
Steel Ltd
JSW Quality Policy:
QUALITY MANAGEMENT SYSTEM (ISO-9001, 9002)
JSW shall strive for continual improvement and innovation in our integrated steel
plant operations for quality products and services in a healthy and eco-friendly work
environment; including hazard identification and risk management and create niche
national and international markets. The fully computerized process control facilities
ensure that the end product meets the exacting expecting and specifications. All quality
systems are ISO-9002 approved. This has enabled the organization to make aggressive
efforts in international markets.
D. PRODUCTS AND SERVICES PROFILE:
We are among the largest integrated steel companies in India, having established
production facilities at close proximity to the mineral resources as well as to the market
for its products. Our cost of production is among the lowest in the country.
The integrated steel plant produces hot rolled coils in various Carbon and Low Alloy
grade of steel for wide application ranging white goods, automobiles, line-pipe, railway
wagons etc…
PRODUCTS: HR coils Galvanized sheets CR coils
Pellets CR coils Galvanized sheets Wire Rods
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 17
Steel Ltd
Billets Color coated products. HR coils
E. Areas of operation
Corporate Office:Jindal Mansion
5A, Dr. G. Deshmukh Marg.Mumbai- 400 026
Tel: 23513000. Fax: 23526400.
Other Regional Offices:
JSW Steel LtdVillage: Toranagallu
P.O: Vidyanagar 583275Dist: Bellary
Tel: 08395-250120 to 30Fax: 08395-250138
JSW Steel LtdB-6 Tarapur MIDC
Boisar- 401506Dist: Thane, (Maharastra)
Tel: 02525- 270147Fax: 12535 270148
JSW Steel LtdVillage: Vasind, Taluk:ShahapurDist:Thane 421604(Maharastra)
Tessl:02527-220022 to025Fax:02527-220020/92
Jindal Thermal Power Company Ltd.Corporate Office:
Raheja Towers, East Wing,6th floor, M.G.Road,Bangalore 560 001.
YEAR OF INCORPORATION:
JVSL was incorporated on 15th march 1994 as a private limited company.
Head office: Mumbai.
Domestic and International Business of JSW:
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 18
Steel Ltd
JWS’s 40-50 % sales go to JISCO, & rest 50% of its sales are done other parts of India and abroad. Out of 50%, 60% of it is sales made in south India, and the rest 40% to 50% is exported.Jsw is a major steel supplier in southern India. Some of the domestic customers are
Hero cycles Ltd- Ludiana Wheels India Pennar Industries –Hyderabad Asrani Tubes –Hyderabad ITN Signode India – Hyderabad Demech Ltd –Mumbai Maharashtra Seamless- Mumbai J.T.Shirwal Paleji Steel Co. Gujarat Ltd NSIL-Indoor Ruche Strips-Indore
JSW entered into international business through exports. JSW started its export business in the year 1999 by exporting its products to Srilanka, and thereafter extended to USA, Italy, China and Europe etc. currently it exports to total 70 countries world over.
F. SHAREHOLDING PATTERN
Share Holding as on : 31 Mar 2010 31 Dec 2009 30 Sep 2009
Face Value 10.00 10.00 10.00
No. Of Shares
% Holding
No. Of Shares
% Holding
No. Of Shares
% Holding
PROMOTER'S HOLDING
Foreign Promoters 5,704,612.00 3.05 5,704,612.00 3.05 5,704,612.00 3.05
Indian Promoters 78,471,061 41.95 78,495,015 41.97 78,495,015 41.97
Sub Total 84,175,673 45.00 84,199,627 45.01 84,199,627 45.01
NON PROMOTER'S HOLDING
Institutional Investors
Mutual Funds and UTI 1,701,778 0.91 1,840,943 0.98 1,368,849 0.73
Banks Fin. Inst. and Insurance
7,851,528 4.20 8,356,844 4.47 8,475,814 4.53
FII's 59,591,549 31.86 58,337,263 31.19 57,515,292 30.75
Sub Total 69,144,855 36.97 68,535,050 36.64 67,359,955 36.01
Other Investors
Private Corporate Bodies 6,335,199 3.39 6,161,834 3.29 5,974,708 3.19
NRI's/OCB's/Foreign Others
11,361,002 6.07 11,396,090 6.09 11,594,043 6.20
Government 1,237,500 0.66 1,237,500 0.66 1,237,500 0.66
Others 833,140 0.45 630,471 0.34 630,154 0.34
Sub Total 19,766,841 10.57 19,425,895 10.39 19,436,405 10.39
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 19
Steel Ltd
General Public 13,961,313 7.46 14,888,110 7.96 16,052,695 8.58
GRAND TOTAL 187,048,682 100.00 187,048,682 100.00 187,048,682 100.00
G. MAJOR COMPETITORS:
Major players in the field of Iron and Steel Manufacture are as follows:-
Steel Authority Of India Ltd. (SAIL)
Rastriya Ispat Nigam Ltd. (RINL)
ISPAT
Tata Steel Co. (TISCO)
Essar Steel
Lloyds Steel Industries Ltd.
National Mineral Development Corporation (NMDC)
COMPETITORS INFORMATION
1. Steel Authority of India Limited: SAIL is the leading steel making company in
India. It is a fully integrated iron and steel maker, producing both basic and special steels
for domestic construction, engineering, power, railway, automotive, and defense
industries and for the sale of its products in the export market.
2. Rastriya Ispat Nigam Limited: This company has taken no. of restrictive
measures to improve financial performance of the plant with the assistance from
government.
3. Tata Iron and Steel Company:
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 20
Steel Ltd
It among the lowest cost steel producers of HR coils in with and their vision is to become
the lowest cost producers of steel in the world in the near future. Based on the platform of
the low cost raw materials, with a modern plant the company plans to produce HR coils
at the costs below Rs.170 per tone. The labour productivity is still poor and in the
absence of a safety net, it is difficult to lay off redundant labour.
4. Essar Steel Limited:
Essar Group with an asset base of US $ 4.4 billion has its presence in core sector
businesses. Chairman Mr. Shashi Ruia and Vice Chairman Mr. Ravi Ruia head the group,
founded over three decades ago. It is the worlds largest gas based HBI plant and the
India‟s largest exporter of flat products. It uses power from its own captive power plant
and uses 70 percent lump to achieve cost reduction. The company is planning to install
the pallet plant for reducing the production and achieving economy of operations besides
continuous,
uninterrupted supply of long term metallic needs. It has introduced contract system of
labour instead of permanent employees.
5.. Lloyds Steels Industries Limited:
The company has entered into an agreement with the Western Coal Fields Ltd., for the
opening an underground mine exclusively for the use of Lloyds Steels.
JSW INFRASTRUCTURAL FACILITIES
H. Infrastructural Facilities:
The plant has concrete roads everywhere, shuttle services, dust recycling systems,
separate buildings for each departments, canteen facilities, well equipped furniture &
computers. JSW imparts compulsory safety training to all its employees. JSW foundation
works for welfare of society, which provides services, like education, health, computers,
rehabilitation for the surrounding villages. Sandur shivaji high school was renovated,
bypass road was constructed, & A beautiful township complements the Jindal
Vijayanagar Steel Plant, which is a housing facility to its employees. The township
architecture inspired by Hampi, the erstwhile capital of Vijayanagar empire is equipped
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 21
Steel Ltd
with all the modern facilities for the well being of the employees. The township has an
English medium school up to Twelfth standard with central syllabus, a temple,
recreational facilities club house, swimming pool, boat house, free water facilities,
electricity and all the primary medical facilities. There is a 58 room centrally air-
conditioned and well furnished guest house serving Indian and continental food.
Sanjeevani hospital is built to cater the medical needs of employees as wellas general
public
I. Achievements/ Awards:
Forging ahead, JSW Steel Ltd. is one among the largest Indian Steel Companies in India
today with capacity of 7.8MT.
India’s second largest steelmaker, JSW Steel Ltd. consists of the most modern, eco-
friendly steel plants with the latest technologies for both upstream & downstream
processes. JSW Steel Ltd. has received all the three certificates:
ISO:9001 certification for quality management system
ISO:14001 for environment management system and
OHSAS:18001 for occupational health and safety management system.
Awards
2009-10
Karnataka Chapter Safety Award 2009: Unnatha Suraksha Puraskara, a trophy
and certificate was presented for outstanding safety performance and management
systems in Metals category of industries during 2006-08, by National Safety
Council, Karnataka Chapter, on 09-09-2009.at Bengaluru.
Greentech Environment Excellence Award 2009: Gold award in metal and
mining sector for outstanding achievement in Environment Management (10th
Oct 2009, Kovalam).
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 22
Steel Ltd
ISO-14001:2004 Certification: Vidyanagar Township was recommended for
certification of ISO-14001:2004 for environmental management practices, on 23-
09-2009, by TUV Rheinland Group.
National Award for Excellence in Energy Management 2009: Excellent
Energy Efficient Unit Award 2009 for Best Energy Management Practices (19, 20
Nov 2009, Chennai), by CII-Godrej Green Business Centre.
PM’s Trophy 2007-08: Runner-Up of the best performing Integrated Steel Plant
in the country, known as Steel Minister’s Trophy (declared on 13-Nov-2009).
CII-EXIM Award 2009: “Commendation Certificate for Significant
Achievement” for Business Excellence by Confederation of Indian Industries, on
17-Dec-2009 at New Delhi.
IMC Ramkrishna Bajaj National Quality Award:”Performance Excellence
Trophy in the Manufacturing Category” by Indian Merchant Chambers Quality
Cell, on 19-Mar-2010 at Mumbai.
Individual and Team Recognitions:
Dr. Madhu Ranjan, VP (R&D and SS), has been conferred with 'Metallurgist of
the Year Award - 2009' instituted by the Ministry of Steel, Govt. of India, at the
47th National Metallurgists' Day Celebrations held on the 14-Nov-09 at Kolkata.
Oral Presentation Category at 63rd Annual Technical Meet, Kolkattai.
Second Prize was won by –
1. Mr. Pranav Tripathi
2. Mr. Sujay P. Patil
3. Mr. D. Satish Kumar
4. Mr. Abhijit Sarkar
5. Mr. P C Mahapatra
Third Prize was won by -
1. Mr GS Rathore
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Steel Ltd
2. Mr Mukul Verma
3. Mr Dileep Varma (M/s ABB)
National Award for Excellence in Energy Management 2009: ‘Most Useful
Presentation Award’ was won by JSW-Steel team for making excellent
presentation, on 20-Nov-09 at CII-Godrej Green Business Centre, Chennai.
2008-09
Greentech Safety Award 2007 : Gold award in metal and mining sector for
Outstanding Achievement in Safety Management by Greentech Foundation (10
April 2008, Mumbai).
G 3 Awards for Good Green Governance 2007 : JSW Steel received winner's
trophy in the Manufacturing Category by SRISHTI, New Delhi (22 April 2008).
TERI Corporate Environmental Award 2008 : Certificate of appreciation for
efforts to wards environmental management and innovative initiatives amongst
corporations with a turnover above Rs. 500 crore (31 May 2008).
CII National Energy Management Award 2008: Excellent Energy Efficient
Unit by CII (Augest 2008).
Greentech Environment Excellence Award 2008 : Gold award in metal and
mining sector for Outstanding Achievement in Environment Management (6
September 2008, Goa).
CII-EXIM Award 2008 : Commendation Certificate for Significant
Achievement towards business excellence (on 6 November 2008, at Bangalore).
National Sustainability Award 2008 : First prize for excellent performance in
integrated steel plant operations (14 November 2008, New Delhi).
CII-ITC Sustainability Awards 2008 : Commendation Certificate for
Significant Achievement on the journey towards sustainable development (on 12
December 2008 at New Delhi).
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Steel Ltd
National Award for Excellence in Water Management 2008 : JSW Steel was
adjudged as “Water Efficient Unit” by CII during National Competition for
Excellence in Water Management held on 16 and 17 December 2008 at
Hyderabad.
IMC Ramkrishna Bajaj National Quality Award 2008 : Performance
Excellence Trophy in the manufacturing category (on 24 March, 2009, Mumbai).
Golden Peacock Award for Corporate Social Responsibility – 2008 : JSW
Steel Ltd. bagged the prestigious ‘Golden Peacock Award for Corporate Social
Responsibility for the year 2008' in February 2009
National Energy Management Award 2008: JSW Steel, Vijayanagar Works
bagged National Energy Management Award 2008 instituted by CII during
Aug'08.
Individual & team recognitions:
IIM Platinum Medal won by Dr SK Gupta, Director, for his outstanding
contribution to the metallurgical profession, education, research at National
Metallurgists' Day (NMD) celebrations on 14 November, 2008. This award was
instituted by the Indian Institute of Metals.
Young Metallurgist of the year Award: Jointly shared by Mr K P Mrunmay and
Mr Pramod Kumar Gupta of R&D and SS department. This award is given to
young metallurgists to encourage research in the field of metallurgy, on 14
November 2008, at NMD celebrations, New Delhi.
ICCQC 2008, Bangladesh
Tungabhadra team won extra-ordinary category award at recently concluded
International Chapter Convention on Quality Circles 2008, at Dhaka in
Bangladesh. The ICCQC competition was held from 23 rd to 26 th September,
and the theme selected was - “ Improving the performance of the Double Deck
Roller Screen” .
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 25
Raw Material Handling System
Coke Oven
Beneficiation plant
Agglomeration
Pellet Plant Sinter Plant
Corex Plant Blast Furnance
Steel Making Shop (SMS)
Steel Ltd
Team members: Mr. Raghu.M, Mr. B.I.Karabhari , Mr. Rajashekar Hiremath , Mr.
G.B.Kesapur , Mr. Shivakumar.K and Mr. Nagendra
NCQC 2008, Baroda
“Swayam” QC Team from Coke Ovens won Excellent Category, and “Genius”
QC Team from BOF-CCP won Distinction Category, during National Convention
on Quality Circles at Baroda on 10 November, 2008.
J.Work Flow Model
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 26
Hot srip mill (HSM)
Cold Roll Mill (CRM)
Steel Ltd
Raw Material Handling System: It consists of two wagon tipplers, three stacker cum
declaimers, one- barrel reclaimed and one twin boom stacker, with a conveyor belt. The
raw materials are iron ore lump and fines, pellets, limestone, dolomite, quartzite,
manganese ore, non-coking and coking coal and coke.
Blast Furnace: It uses iron ore, sinter, pellet, coke and limestone, which are charged at
the top of the furnace and hot air is blown from the bottom of the furnace in 6 t 8 hours,
the iron bearing material converts into liquid iron.
Corex: It uses abundantly available non coking coal as a reluctant. Unlike conventional
blast furnace, which uses hot air for combustion of coke/coal, pure oxygen is used in
corex.
Basic Oxygen Furnace: It is the most widely used steel making process. The hot metal
is charged in the BOF and oxygen is blown into the hot metal at a high pressure through
a water cooled lance. All the impurities in the hot metal get oxidized. Fluxes like lime
and claimed dolomite are added to the hot metal during the process to facilitate the
chemical reaction, which then floats on the surface of liquid steel as slag. The liquid
steel is tapped from the BOF into jaladle at correct temperature and chemical
composition.
Continuous Casting Plant (CCP). . The liquid steel gets fully solidified into slabs,
after passing through a series of rolls. Optimized external cooling of the slab right from
the exit of the mould ensures slab quality meeting international standards. Both CCP &
BOF is designed by SMS –Demag, Germany.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 27
Steel Ltd
Hot Strip Mill (HSM) has been engineered by Danieli United, USA incorporating the
latest technology and is equipped with a high level of automation, provided by Cegeiec,
USA, allowing complete hands off operations. Here, the steel slabs are rolled into coils of
desired sizes
HOT ROLLING:
Hot rolling is the working of metals above the recrystalisation temperature. At this
temperature, energy required for plastic deformation is less because above critical
temperature, steel has Face Centered Cubic (FCC) structure, which is more ductile than
the Body Centered Cubic structure, observed in the steel below critical temperature. The
slabs are charged to a modified pusher type reheating furnace of capacity 80 tons per
hour. The hot slabs are initially rolled in 2 Hi rolling mill, which in turn feeds the 4 Hi
finishing mill. The steel slabs, either indigenous imported, and identified according to
their grade, heat number and slab sizes are cut to required sizes to be fed in to the
furnace. The furnace heats up the slabs and then the extractor arms extract the slabs and
place it on the roll table. The rotating rollers convey the slabs to the roughing mill where
the slabs are reducing to rough thick plates.
COLD ROLLING:
Cold rolling is a complex process of plastic deformation of metals between pairs of
rotating rolls to reduce thickness of hot rolled strips and impart desired mechanical and
metallurgical properties to them. Forming is considered as the most economical
manufacturing process as there is no loss of metal in it. In this process- desired size and
shape are obtained through the plastic deformation of metal.
K. FUTURE PROSPECTS OF JINDAL SOUTH WEST:
With the onset of liberalization, the steel industry has to gear-up, not only to meet
domestic competition, but also the global competition in terms of product range, quality
and price. India has become self-sufficient in iron and steel materials in the last 3-4 years.
Productivity of our steel plants must be maintained at levels close to international
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 28
Steel Ltd
Standards.
Presently JSW is producing 7MTPA of steel and they have set a target by 2011 march to
produce 10MTPA with commence of 4 Blast furnance which is of 3MTPA and By 2015
to produce 16.5MTPA.
MCKINSEY’S FRAME WORK
MCKINSEY 7-S FRAMEWORK FOR ORGANISATION
STUDY:
According to 7’s model there are seven basic dimensions, which represent the basic core
of managerial activities. These are the “levers” which executives use to influence
complex and large organization. The seven S’s are shared values, strategy, structure,
systems, style, staff and skills and these are shown in the following figure:
The Mckinsey 7 S Model for Organization Study is a “Value Based Management
Model”. The Value Based Management model describes how one can holistically and
effectively organize a company. Together these factors determine the way in which a
corporation or an organization operates
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 29
Steel Ltd
STRUCTURE:
Organizational structure refers to formal hierarchical relationships & positional
arrangements it deals with how members communicate with others, how information
flows, what roles he performs, Rules & procedures existing to guide the activities of
members as part of organization With reference to JSW, it has good mentor, disciplined
relationship, encouragement, help & guidance.
The structure of Jindal south west steels ltd (JSW):
Name Designation
Savitri Devi JindalChairman / Chair Person
Y Siva Sagar RaoJoint Managing Director & CEO
Vinod NowalDirector & CEO
Zarin DaruwalaNominee Director
S K GuptaDirector
Uday M Chitale Director
Kannan VijayaraghavanDirector
Vandita SharmaNominee Director
NameDesignation
Sajjan JindalVice Chairman & Mng.Director
M V S Seshagiri RaoJoint Managing Director & CFO
Jayant AcharyaDirector
G R SundaravadivelNominee Director
Anthony Paul PedderDirector
Sudipto SarkarDirector
Vijay Kelkar Additional Director
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Steel Ltd
N C MuniyappaNominee Director
SKILL:
Skills are capabilities of organization as a whole. Skills, which describe the organization
as competence like in JSW has manufacturing skills, R&D etc,
The skills, which JSW process are assertive, decision-making, business knowledge,
leadership, attitude, adaptability, courageous, & dynamism. However the skill
requirement varies from the job to job. Recruitment & Selection process: Careers: JSW
handpicks the best engineering and managerial talent from the country’s reputed
organizations and technical and management colleges. The selection is been done from
reputed business houses, campus selection, placement agencies, and Advertisements &
Data base. There is a selection committee, which conducts group discussions, personal
interviews & other formalities.
Training & development:
Objective: To bridge the gap between existing skills& desired skills. Training in JSW is
aimed at the systematic development of knowledge, skills, attitude and teamwork.
Training & development of personal skills is considered a high priority area and it forms
an integral part. Programs are undertaken keeping in view the dynamic changes in the
environment, which are contributed by rapid technological obsolescence or for
personality development or as an Induction.
Internal Training is given where an outside agency or a specialist comes to train the
employees.
External training is given when the employees are sent to any management consultancy
firm. Kirloskar Institute of training is one of such institute.
On the job training: is given as induction programs. However JSW don’t make any job
analysis & formal job description. Induction programs are done to familiarize the new
comers & compulsory safety training is given to all employees of JSW. Apart from this
managerial training, behavioral, technical, functional, multi-skill training is given
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 31
Steel Ltd
STYLE: In JSW there are 66 Quality circles where the employees can suggest any
improvements in systems. There is a grass root level participation. These suggestions are
implemented either by interdepartmental communications, mutual understanding, or by
top-level analysis, where huge investments are involved.
Even the policy decisions are taken with consultancy of respective persons. Employees
take casual decisions & their immediate head gives the feedback.
From the above facts we can say that JSW has a participative management style.
STRATEGY:
It includes basic purposes, missions, objectives, goals & major action plans & policies
In JSW, every department has its own strategies & policies
Marketing Strategies :
Focusing on selected major customers in terms of their locations, segments, potential
demands etc., Customizing of product so that the best advantage by using JSW product in
terms of yield, lower costs, etc.
JSW Shoppe
A Unique concept of retailing in steel to expand retail base and ensure the easy
availability of quality & branded steel to all its market.
Pricing Strategies:
JSW is into Industrial goods segment where sales are made according to customer
specifications. Hence not much of publicity & Market leadership techniques are required.
SYSTEMS:
It refers to all rules, regulations & procedures both formal & informal. It includes
production plans, control system, capital budgeting systems, cost accounting procedures,
budgetary systems, recruitment training & development plans.
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Steel Ltd
In JSW, every department has got their own Management Information system
Human resource information system:
There is an HR package which stores all employee profile such as employee ID, code no,
joining date, place of posting, place of posting, name, personal profile, bank name, A\c
no, grade, department, qualifications, designation, experience, pay scale, & history. On
the basis of this data rating is done.
It also gives information of overall employee structure like no of persons joined in a
month, transfers, promoted, land giver category, loan taken employees, etc
Quality systems:
Every production department has quality packages. They have their own targets &
grades. JSW has Laboratory, R&D & Testing facilities .For e.g.: pellet plant is the
supplier of corex dept so corex checks the quality specification while purchasing from
pellet plant. Hence there is a value chain.
STAFF:
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Steel Ltd
SHARED VALUES
Concern for People: People come first in the new business paradigm. The success of an
organization essentially depends upon utilization of this resource.
JSW has suggestion scheme & committee called as “mera Sujhav.”All the employees can
give suggestions on improvement of technology, production process or operations.
Proposals with the implementation process are welcomed. The top people reviews &
analyses. Scheme makers get awards.
Department with zero level accidents & quality achieved gets incentives. On
Independence Day every year, one employee gets “best employee of JSW”award.
SWOT analysis
STRENGTH
1. JSW has good reputation in steel market. It is the result of long experience of
around 3 decades in the steel industry.
2. The major strength of JSW lies with the price. JSW with enjoy reduction in cost
due to very low cost of power.
3. State of art technology the correx process makes it a low cost production of steel
in the industry.
4. Production quality is the strength of the JSW.
5. JSW planned infrastructure for inward and outward by rail plus road, as base
foundation for future growth.
WEAKNESS:
1. Transportation costs are high due to non-availability of trucks and other means of
transportation easily.
2. Sourcing of skilled man powering.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 34
Steel Ltd
3. JSW is far away from the main market as such it faces problems with the
infrastructure.
4. Problems with efficient warehousing and out bound transportation.
OPPORTUINITIES:
1. Located in the center of Bellary- Hospet region, a high grade iron belt.
2. Easy access to the major ports of Goa, Chennai, Mangalore and Mumbai.
3. It lies in the vicinity of large potential and unexplored market of southern India.
4. Steel imports and exports are also slated to grow.
5. The automobile sector is also expected to perform well, leading to increase in
demand for steel.
6. Several initiatives in the form of improvement in infrastructure are also expected
to boost demand for steel.
7. Demand for HR, CR and galvanized products are expected to beneficially affect
the company operations.
8. A special incentive from India railways to steel industries is under consideration.
THREATS:
1. Domestic as well as internationals steel majors like Tata Steel, POSCO and Mittal
Steel have announced to set up manufacturing facilities near Kuditini near to
location of Jindal This could lead to excess competition as it
2. Threats from materials like aluminum, plastic and cement.
3. Arcelor mittal, , posco and other Indian steel majors to invest in Karnataka.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 35
Steel Ltd
ANNUAL REPORTS
PROFIT AND LOSS ACCOUNT AS ON MARCH 31ST 2010
March - 2010
(12 months)
% March - 2009
(12 months)
% March - 2008
(12 months)
%
Sales 181,674.60 +1.00 140,065.90 +0.99 113,910.50 +0.98
Other Income 608.10 +0.00 1,855.30 +0.01 1,876.10 +0.02
` 182,282.70 - 141,921.20 - 115,786.60 -
Raw Material Cost
113,511.20 +0.62 91,012.50 +0.64 62,765.80 +0.54
Excise 12,891.80 +0.07 11,727.00 +0.08 12,378.60 +0.11
Other Expenses 12,536.00 +0.07 8,714.70 +0.06 5,203.80 +0.04
Operating Profit 42,735.60 +0.23 28,611.70 +0.20 33,562.30 +0.29
Interest Name 9,002.60 +0.05 8,368.20 +0.06 4,948.40 +0.04
Gross Profit 33,733.00 +0.18 20,243.50 +0.14 28,613.90 +0.25
Depreciation 11,234.10 +0.06 8,276.60 +0.06 6,871.80 +0.06
Profit Bef. Tax 23,107.00 +0.13 13,822.20 +0.10 23,618.20 +0.20
Tax 7,974.30 +0.04 3,065.20 +0.02 7,227.70 +0.06
Net Profit 15,132.70 +0.08 10,757.00 +0.08 16,390.50 +0.14
Other Non- Recurring Income
5,094.70 +.03 -6,172.00 -.04 891.40 +.01
Reported Profit 20,227.40 +0.11 4,585.00 +0.03 17,281.90 +0.15
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 36
Steel Ltd
Equity Dividend 1,777.00 +0.01 187.10 +0.00 2,618.70 +0.02
BALANCE SHEET AS AT 31ST MARCH 2010
Mar ' 10 Mar ' 09 Mar ' 08Sources of fundsOwner's fundEquity share capital 248.08 248.08 248.08Share application money - - -Preference share capital 279.03 288.93 288.93Reserves & surplus 9,179.23 7,422.24 7,140.24Loan fundsSecured loans 8,987.51 8,214.61 5,497.08Unsecured loans 2,597.59 3,058.02 2,049.45Total 21,291.44 19,231.88 15,223.78Uses of fundsFixed assetsGross block 21,795.58 16,896.75 13,952.32Less : revaluation reserve - - -Less : accumulated depreciation
4,929.44 3,810.31 2,996.83
Net block 16,866.14 13,086.44 10,955.49Capital work-in-progress 6,684.27 9,242.06 5,612.43Investments 1,768.35 1,250.11 923.53Net current assetsCurrent assets, loans & advances
5,652.18 4,849.54 3,223.03
Less : current liabilities & provisions
9,679.50 9,196.27 5,490.70
Total net current assets -4,027.32 -4,346.73 -2,267.67Miscellaneous expenses not written
- - -
Total 21,291.44 19,231.88 15,223.78Notes: Book value of unquoted investments
1,647.45 1,252.86 707.78
Market value of quoted investments
872.21 2.75 215.75
Contingent liabilities 6,990.48 8,170.64 11,145.95
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 37
Steel Ltd
Number of equity sharesoutstanding (Lacs)
1870.49 1870.49 1870.49
LEARNING EXPERIENCE:
The learning experience which I had in Jindal South West. Was a wonderful experience. I
came to know how theoretical aspects are applied practically in the organization.
Whatever theoretical information learned in the classes had to be implemented in practice
in in-plant training But it was good learning experience for me to understand various
departments and their style of functioning During my in plant training, I was able to study
various aspects of the organization practically. I acquired the knowledge of various
strategies adopted by the company It was a great experience for me to work in an
organization culture where I interacted with different types of people.
I could learn how to behave in an organizational environment, i.e. while interacting with
the colleagues and other people
The company believes in maintaining a very high level of organizational discipline by
synergizing personal with technological discipline. The Human resource department is
handling communication at JSW. Communication is given a high priority and this is so
because the management at JSW considers it necessary to bring down business and
increase intra-organization information flow as a major prerequisite for organizational
growth. The working environment acts as the primary motivation for all employees.
Jindal organization has constantly tried to endeavor to achieve and provide an atmosphere
of perpetual growth and shared learning to all their employees
Finally, The Company aims to provide safe working conditions at all the Jindal plant
locations. The Safety and health of the employees is amused by maintaining safe
processes, carrying out safe practices, providing a safe environment, importing adequate
and proper training, issuing detailed instructions as regards to the area of operation and
including safety awareness among all employees. The company is known for its core
values quality, safety, environmental care, culture and its customs. The value adopted by
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 38
Steel Ltd
the company is to achieve its goals. I understood the motivating techniques followed by
the human resources department to motivate the employees. I was able to identify the
strengths and weakness of the company
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 39
CHAPTER-4THEORETICAL CONCEPTS
Steel Ltd
INTRODUCTION
Human Resource management (HRM) is concerned with the "people" dimensions
in management. Since every organization is made up of people, acquiring their services,
developing their skills, motivating them to high level of performance and ensuring that
they continue to .maintain their commitment to the organization are essential for
achieving organizational objective.
The study includes types and process of HRD programs organized in JSW and the relationship
between program and its effectiveness on employee performance and to know the response of the
trainees about the training effectiveness
The study was conducted systematically. The primary data required for the study was
obtained from the employees with the help of structured questionnaire which was given
to 50 employees randomly. The secondary data was collected through internet, company
hand book, journals.
This study elucidates the facts on the awareness of the employees with regard to the
training program, types of HRD Program, effectiveness of Training Program etc.,
prevailing in JSW. This study reveals that majority of the employees have attended
Managerial Training program of sophisticated nature with good faculties. It further
reveals that the Training Program conducted in the said organization have been educative
and interesting and also have increase their inner skills. Finally the management as well
HR Department concerned in JSW is doing their job judiciously with regard to Training
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 40
Steel Ltd
and its Effectiveness activities. The researcher of this study is convinced that this study
would be an eye-opener for their furtherance in the field of their Training activities
Fig: A Typical Organization of Personnel Department
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Steel Ltd
Personnel Policies of HR
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 42
General Manager
Personnel Director
Personnel Manager
Personnel Officer
Personnel Research & Development Officer
TrainingDepartment
PersonnelDepartment
Operative TrainingSupervisory TrainingManagement TrainingTraining Instruction
Training Aids & Equipments
WelfareTrainingRecruitmentMaintaining Payroll
Steel Ltd
The personnel function in a hotel includes many activities such as:
≈ Consideration of leadership style
≈ Relationship
≈ Responsibilities
≈ Philosophy
≈ Social orientation
≈ Organizational structure
In most of the hotels the personnel policies are put in writing. These policies are distributed to
key and responsible executive to provide guidance and ensure consistent application. Periodically
the HRD review these policies.
.
Arrears of personal policies
The personal policies are concern with each of the following areas:-
Employment
≈ Recruitment
≈ Interview
≈ Psychological and Aptitude tests
≈ Selection
≈ Medical Examination
≈ Administration and Transfers
≈ Promotions and Termination
≈ Responsibilities for adherence to indiscrimination laws
Education and Training
≈ Orientation of new employees
≈ Educational needs for employees
≈ Training development programmes
≈ Communications
Health and Safety
≈ Occupational health
≈ Emergency medical care
≈ Safety programme
≈ Preventive Medicine
Employee’s Services
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 43
Steel Ltd
≈ Cafeteria
≈ Vending Machine
≈ Employee’s Lounge
≈ Lockers
≈ Counseling
≈ Suggestion Scheme
Wages and Salary Administration
≈ Salary structure
≈ Performance standards and Job evaluation
≈ Salary survey
Benefits
≈ Group Insurance
≈ Sick-pay plan
≈ Hospitalization
≈ Major medical coverage
≈ Key man Insurance
≈ Pension plan/scheme
Labour/Industrial relations
≈ Presentation Elections
≈ Collective Bargaining
≈ Grievance Procedures
Administration
≈ Personnel records
≈ Security
≈ Holidays and Vacations
≈ Office Layout and Services
≈ Work Rules
HUMAN RESOURCE PLANNING
Human Resource Planning (HRP) is the first aspect of human resource process. It is very
commonly understood as the process of forecasting an organization’s future demand for, and of,
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 44
Steel Ltd
the right type of people in the right number. It is only after this that HRM department can initiate
a recruitment and selection process. HRP is the sub-system in the total organizational planning.
HRP is important for:
≈ The future personnel needs
≈ To cope up with change
≈ To create highly talented personnel
≈ For the protection of weaker sections
≈ For the international expansion strategy of the company
≈ It is the foundation for personnel functions
The list is infact never ending. HRP actually has become an inevitable part of HRM process.
HRP is influenced by several considerations. The more important of them are:
Type and strategy of the organization
Organizational growth cycles and planning
Environmental uncertainties
Type and quality of forecasting information
Nature of jobs being filled
Off-loading the work
The HRP Process
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Steel Ltd
Fig: HRP Process
Organizational Objectives & Policies
HR plans need to be based on organizational objectives. In practice, this implies that the
objectives of the HR plan must be derived from organizational objectives. Specific
requirements in terms of number and characteristics of employees should be derived from the
organizational objectives.
HR Demand Forecast
Demand forecasting must consider several factors – both external as well as internal. Among
the external factors are competition, economic climate, laws and regulatory bodies, changes
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 46
OrganizationalObjectives & Policies
HR Demand Forecast HR Supply Forecast
HR Programming
HRP Implementation
Control and Evaluation of Program
Environment
Surplus Shortage
Steel Ltd
in technology and social factors. Internal factors include budget constraints, production
levels, new products and services, organizational structure and employee separations.
HR Supply Forecast
The next logical step for the management is to determine whether it will be able to procure
the required number of personnel and the sources for such procurement. This information is
provided by supply forecasting. Supply forecasting measures the number of people likely to
be available from within and outside an organization, after making allowance for
absenteeism, internal movements and promotions, wastage and changes in hours and other
conditions of work.
HR Programming
Once an organization’s personnel demand and supply are forecast, the two must be reconciled
or balanced in order that vacancies can be filled by the right employees at the right time. HR
programming is the third step in the planning process, therefore, assumes greater importance.
HR Plan Implementation
Implementation requires converting an HR plan into action. A series of action programmes
are initiated as a part of HR plan implementation. Some such programmes are recruitment,
selection and placement; training and development; retraining and redeployment; the
retention plan; the redundancy plan; and the succession plan.
Control and Evaluation
Control and evaluation represents the fifth and the final phase in the HRP process. The HR
plan should include budgets, targets and standards. It should also clarify responsibilities for
implementation and control, and establish reporting procedures which will enable
achievements to be monitored against the plan. These may simply report on the numbers
employed against establishment and on the numbers recruited against the recruitment targets.
But they should also report employment costs against the budget, and trends in wastage and
employment ratios.
Consequences of Inadequate Planning
One example of inadequate planning is the case of an organization caught in a severe
budget crisis for which management sees only one solution – to lay off large numbers of
employees. Careful planning for such a crisis during better times might have resulted in a series
of alternatives, making layoffs unnecessary.
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Steel Ltd
Many other problems can occur if human resources planning are haphazard or neglected.
For example, planning should take into account staff reductions in all parts of the organization
and should be tried into any system for transferring employees. Top management because of
declining sales or increased automation, including the use of computers and latest technology,
might contemplate staff reductions.
JOB ANALYSIS
In order to achieve effective HRP, the duties involved and the skills required for
performing all the jobs in an organization have to be taken care of. This knowledge is gained
through job analysis. In simple words, job analysis may be understood as a process of collecting
information about the job. Specifically, job analysis involves the following steps:
Collecting and recording job information.
Checking the job information for accuracy.
Writing job description based on the information.
Using the information to determine the skills, abilities and knowledge that are required on
the job.
Updating the information from time to time.
The Process of Job Analysis
The following fig. represents the process of job analysis. The fig. also points out the uses of
information about the jobs.
Strategic Choices
≈ Employee Involvement: Job analysis involves collecting job-related information –
duties, responsibilities, skills and knowledge required to perform the jobs. It may be
stated that in job analysis, information about a job is collected and not about the
incumbent, however, the jobholder is consulted. Employees are often asked to supply
vital information about the contents of job, given their familiarity with it.
≈ The Levels of Details: The level of analysis may vary from detailed, as in time and
motion studies, to broad as in analyzing jobs based on general duties. The level of
analysis affects the nature of the data collected.
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Steel Ltd
Fig: Process of Job Analysis
≈ When and How Often: Another strategic choice relates to the timing and frequency of
conducting job analysis. Job analysis is generally conducted when i) an organization is
newly established and the job analysis is initiated for the first time; ii) a new job is
created in an established company; iii) a job is changed significantly due to change in
technology, methods, procedures or systems; iv) the organization is contemplating a new
remuneration plan; or v) the employees or managers feel that there exist certain inequities
between job demands and the remuneration it carries.
≈ Past-Oriented versus Future Oriented: If an organization is changing rapidly due to
fast growth or technological change, a more future-oriented approach to job analysis may
be desired.
≈ Source of Job Data: Although the most direct source of information about a job is a
jobholder, a number of other human and non-human sources are available.
ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT 49
Strategic Choices
Gather Information
Process Information
Job Description
Job Specification
Uses of Job Description and Job Specification Personnel Planning Performance Appraisal Hiring Training & Development Job Evaluation &
Compensation Health & Safety Employee Discipline Work Scheduling Career Planning
Steel Ltd
Information Gathering
This step involves decision on three issues, viz;
≈ What type of data is to be collected?
≈ What methods are to be employed for data collection?
≈ Who should collect the data?
For Example: In most of the hotels that I visited, the sources for collecting information are by
Observation, Interviews and Questionnaire.
Information Processing
Once the job information has been collected, it needs to be processed, so that it would be useful
in various personnel functions. Specifically, job-related data would be useful to prepare job
description and job specification. (see fig).
Fig: Job Description and Job Specification in Job Analysis
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Job AnalysisA Process of Obtaining all Pertinent Job Facts
Job DescriptionA statement containing items such as Job title Location Job Summary Duties Machines, tools &
equipment Materials & form used Supervision given or
received Working conditions Hazards
Job SpecificationA statement of human qualifications necessary to do the job. Usually contains such items as Education Experience Training Judgement Initiative Physical efforts & Physical skills Responsibilities Communication skills Emotional characteristics Unusual sensory demands such as
sight, smell, hearing.
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Role of Human Resource Department
The human resource department plays a major role in helping plan the system and in
developing job description, job specification and performance standards. Specialists in that
department may be assigned to conduct job analysis and write job descriptions in cooperation
with managers, supervisors and employees. The human resource department is not involved in the
actual writing of performance standards but play a diagnostic, training and monitoring role.
JOB DESIGN
Job design is a process of determining the specific tasks and responsibilities to be carried out by
each member of the organization. In simple words, the logical sequence to job analysis is job
design. Job analysis provides job-related data as well as the skills and knowledge expected of the
incumbent to discharge the job. Job analysis, then, involves conscious efforts to organize tasks,
duties and responsibilities into a unit of work to achieve certain objectives.
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Fig: Factors Affecting Job Design
Factors Affecting Job Design
Job design is affected by organizational, environmental, behavioural factors. A properly designed
job will make it productive and satisfying. If a job fails on this count, the fault lies with the job
designers who, based on the feedback, must redesign the job. (See Fig)
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Feedback
Organizational FactorsCharacteristics of taskWork flowErgonomicsWork practices
Environmental FactorsEmployees abilities and availability Social and cultural expectations
Behavioural FactorsFeedback AutonomyUse of abilitiesVariety
Job Design
Productive & satisfying job
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Techniques of Job Design
Fig: Techniques of Job Design
≈ Work Simplification: In this technique, the job simplified or specialized. A given job is
broken down into small sub-parts and each part is assigned to one individual.
≈ Job Rotation: Job rotation implies movement of employees from job to job. Jobs remain
unchanged, but incumbents shift. With job rotation, a given employee performs different
jobs, but more or less, jobs of the same nature.
≈ Job Enlargement: Job enlargement involves expanding the number of tasks or duties
assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding
more tasks or duties to a job does not mean that new skills and abilities are needed to perform
it.
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Work Simplificatio
n
JobRotation
Autonomous Teams
High Performance Work Design
Job Enrichment
Job Enlargemen
t
JobDesign
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≈ Job Enrichment: Job enrichment seeks to improve both task efficiency and human
satisfaction by building into people’s jobs, quite specifically, greater scope for personal
achievement and recognition, more challenging and responsible work, and more opportunity
for individual advancement and growth.
≈ Autonomous or Self-directed Teams: A self-directed work team is an intact group of
employees who are responsible for a whole work process or segment that delivers a products
or service o an internal or external customer.
≈ High-Performance Work Design: It is a means of improving performance in an
environment where positive and demanding goals are set.
Role of Human Resource Department
The human resources department’s role in job design is usually indirect, although job
design influences almost every aspect of human resources management. The department
diagnoses organizational problems that suggest job redesign, incorporate information on job
design in training and management development programs, and help plan job redesign programs
to ensure that sound human resources policies and practices are developed. Further, the
department is needed to prepare to modify job descriptions and job specifications and to modify
recruitment, selection, training, compensation and other practices to be consistent with any job
redesign program.
RECRUITMENT
In simple terms, recruitment is understood as the process of searching for and obtaining
applicants for jobs, from among whom the right people can be selected. Recruitment is the
process of finding qualified people and encouraging them to apply for work with the firm.
Managerial Roles
Responsibility for the overall recruitment process is assigned to human resources
managers. They are responsible for designing and implementing a recruitment program that will
meet the hotel industry’s personnel needs while complying with all legal requirements. This
responsibility includes finding sources of applicants; writing and placing advertisements;
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contacting schools; agencies and labour unions; establishing procedures to guarantee equal
employment opportunity; and administering the funds the firm has budgeted for recruitment.
Factors Governing Recruitment
The given fig. represents the factors that normally affect the recruitment process. These
factors add additional function to that of HR manager.
Fig: Factors influencing recruitment
Types of Recruitment
In hotel industry, the types of recruitment are:
Internal Recruitment
Internal recruitment seeks applicants for positions from those who are currently employed.
Internal sources include present employees, employee’s referrals, former employees, and
former applicants.
External Recruitment
Finding qualified applicants from outside the organization is the most difficult part of
recruitment. The success of an expanding hotel industry or one with many positions
demanding specialized skills often depends on the effectiveness of the organizations
recruitment program. Specifically, sources external to an organization are professional or
trade associations, advertisements, employment exchanges, college/university/institute
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External ForcesSupply & DemandUnemployment rateLabour MarketPolitical-socialSons of soilImage
Internal ForcesRecruitment PolicyHRPSize of the firmCostGrowth & Expansion
Recruitment
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placement services, consultants, displaced persons, radio and television, acquisitions and
mergers and competitors.
Recruitment Process
HR practices its function in each and every stages of recruitment. The process comprises five
interrelated stages, viz. (i) Planning, (ii) Strategy development, (iii) Searching, (iv) Screening,
and (v) Evaluation and control.
The function of HR is to make the selection procedure an ideal one. The ideal recruitment
programmed is the one that attracts a relatively larger number of qualified applicants who will
survive the screening process and accept positions with the organization, when offered.
Fig: Recruitment Process
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Personnel Planning
Job Vacancies
Job Analysis
Recruitment Planning-Numbers-Types
Employee Requisition
Searching Activation“Selling”-Message-Media
Screening Potential Hires
Applicant Pool
To Selection
Evaluation & Control
Strategy Development-Where-How-When
Applicant Populatio
n
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SELECTION
Selection is a process of picking individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. Different hotels apply different
methods and procedure for recruitment as well as selection. It basically depends on the
management policies and the size of operation.
Selection Process
Selection is a long process, commencing from the preliminary interview of the applicants and
ending with the contract of employment. Fig. shows the generalized selection process. In practice,
the process differs among organizations and between two different jobs within the same
organization. Selection procedure for senior managers will be long-drawn and rigorous,
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Fig: General Selection Process
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External Environment
Internal Environment
Selection TestPreliminary Interview Employment Interview
Physical Examination Selection Decision Reference & Background Analysis
Job Offer
Employment Contract
Evaluation
RA
RA
RA
RA: Rejected Applicants
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Selection Process for Managerial Department in Orchid
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Pre-placement Presentation
Group Discussion
Extemporization
Written Aptitude Test
Preliminary Interview
Psychometric Test for short
listed candidates
Final Interview with senior
management
Letter of Offer
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ORIENTATION AND PLACEMENT
Orientation
Orientation is called as induction. It is the planned process of introducing new employees to their
jobs, their co-workers and the organization. The main purpose of induction is to relieve the new
employee from possible anxiety and make him or her feel at home on the job.
These orientation programmes are carried out formally as well as individually/collectively in the
Company’s. These programmes are carried from 1 weak – 2 weak.
Organizational Issues
History of employer Product line or services provided
Organization of employer Overview of production process
Names & titles of key executives Company policies & rules
Employee’s title & department Disciplinary regulations
Layout of physical facilities Employee handbook
Probationary period Safety procedure & enforcement
Employee Benefits
Pay scales and pay days Insurance benefits
Vacations and holidays Retirement programme
Rest breaks Employer-provided services to employees
Training & education benefits
Counseling Rehabilitation programmes
Introduction
To supervisor To co-workers
To trainers To employee counselor
Job Duties
Job location Overview of job
Job tasks Job objectives
Job safety requirements Relationship to other jobs
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Placement
After orientation comes placement. Placement refers to the assignment of a new employee to his
or her job. The jobs of HR are simple where the job is independent, but where the jobs are
sequential or pooled, HR specialists use assessment classification model for placing newly hired
employees. For example the job of placing a waiter to its position is quite simpler as compared
with that of the placing the employee at managerial level. The job of placing a waiter to its
position is called an independent job but the job of placing employee at managerial level can be
considered as sequential or pooled job.
TRAINING AND DEVELOPMENT
Training and development activities are designed in order to impart specific skills,
abilities and knowledge to employees.
Effective training is basic ingredient of success in the hotel industry. The concept of
training is endorsed my most managers in the hotel industry, yet managers often give little
thought to the training function in the context of their own business or departmental
responsibilities until something goes wrong! One of the main problems in hotel industry is that
investment in training and development of employees is a reactive process for many companies.
Frequently, training and development arises as the result of significant change in the operational
environment or as a consequent of crisis such as staff turnover or major departmental problems.
Training is then used to cope with the immediate difficulty. This process may be proved costly to
hotel. Whereas development refers to learning opportunities designed to help employees grow
and evolve a vision about the future.
Here the job of HR is to identify the training need and then accordingly to design the
suitable programme for that. Training within a hotel provides the best opportunity to influence the
attitude and performance of employees. The training programmes include is such as introduction,
fire, food hygiene, control of substances hazardous to health, manual handling first-aid, technical
skills, product knowledge, and customer service.
Methods and Techniques of Training
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A multitude of methods of training are used to train employees. Training methods are categorized
into two groups and they are:
1. On-the-job training (OJT)
2. Off-the-job training
1. On-the-job training: On-the-job training is primarily learning by doing and, as such, is
probably the most used and most abused approach to training. Like other form of training,
OJT requires planning, structure and supervision to be effective for developing a variety of
practical and customer-oriented capabilities. When done correctly, OJT is a sensible and cost
effective method for training and assessing trainees’ progress in jobs such as retail sales, food
and beverage operatives, and check-in and check-out positions. Some of the On-the-job
methods of training are orientation training, job-instruction training, apprentice training,
internships and assistantships, job rotation etc.
2. Off-the-job training: Off-the-job training allows for the development of broader and more
conceptual skills while providing a practice environment in which error need not be so costly.
There are three main forms of off-the-job training: In-house, External, and Independent.
In-house off-the-job training may take several formats including lectures and other
classroom techniques, discussions, demonstrations, case studies and role plays, and
simulations. What distinguishes in-house off-the-job training from other type of off-the-job
training is that in-house training is conducted away from the physical location where the job
is actually carried out, but still on company premises.
Like in-house off-the-job training, external off-the-job training can also take a
variety of forms. Such training may be tailored to the company’s specific need or it may be
offered on a more general basis; it may focus on special disciplines related to hospitality.
Independent off-the-job training refers to training methods that are controlled and
managed by the learner. A number of these training options which are becoming increasingly
important to employees in the hotel industry are:
≈ Distance/open learning or training (may involve correspondence teaching, use of
television or radio, video-conferencing, etc.)
≈ Computer-assisted learning
≈ Interactive-video learning
≈ A combination of the above method
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The Training Process
Assessing Training Needs
Preparing the Training Plan
Specifying Training Objectives
Designing the Training Programs
Selecting the Instructional Methods
Completing the Training Plan
Conducting the Training
Evaluating the Training
Planning Further Training
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PERFORMANCE APPRAISAL
Performance appraisal refers to the assessment of an employee’s actual performance, behaviour
on jobs, and his or her potential for future performance. It is done generally for the purpose of
assessing training needs to employee, to effect his promotions and to give him pay increase,
retention or termination.
Though there are different methods of performance appraisal only one method that is commonly
used in this industry is Rating Scale Method.
Challenges of Performance Appraisal
Create a culture of excellence that inspires every employee to improve or lend himself or
herself to be assessed.
Align organizational objectives to individual aspirations.
Clear growth paths for talented individuals.
Provide new challenges to rejuvenate careers that have reached the plateau stage.
Forge a partnership with people for managing their careers.
Empower employees to make decisions without the fear of failing.
Embed teamwork in all operational processes.
Debureaucratise the organization structure for ease of flow of information.
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Performance Appraisal Process
Fig: Performance Appraisal Process
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Objectives of Performance Appraisal
Establish Job Expectations
Design an Appraisal Programme
Appraise Performance
Performance Interview
Use Appraisal Data for Appropriate Purposes
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JOB EVALUATION
Job evaluation refers to the process of determining the relative worth of each job for purpose of
establishing satisfactory wage and salary differentials. Jobs are evaluated on the basis of their
content and are placed in the order of their importance. In a job evaluation programme, the jobs
are ranked and not the job holders.
Methods of Job Evaluation
Fig: Methods of Job Evaluation
Though there are different types of methods available but the most common method practiced in
this industry is analytical method and in analytical method point ranking methods is the most
appropriate one.
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Job Evaluation
Analytical Non-Analytical
Point-Ranking Method
Factor Comparison
Method
Ranking Method
Job-Grading Method
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Process of Job Evaluation
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Fig: Job Evaluation Process
EMPLOYEE RELATIONS
As the name suggest it is all about maintaining relationship with the employee. It includes all
terms that are concerned with the employee like employee remuneration, incentives payments,
employee benefits and services, employee welfare, safety and health issue, trade unions etc. Here
it’s where the HR manager communicates with employee about their problems, suggestion and so
on. All these steps are followed in order to retain best employee.
Employee Remuneration
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Objectives of Job Evaluation
Job Analysis
Job Evaluation Programme
Wage Survey
Employee Classification
Job Description
Job Specification
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In most of the hotels, the human resource department plays a crucial role in determining the
remuneration policy of employees. For this they take into consideration all external as well as the
internal factors. By this they have to deal with external factors like labour market, going rate, cost
of living, labour unions, labour laws, society and the economy as well as internal factors like
company’s ability to pay, job evaluation and performance appraisal and the worker himself or
herself. In hotel industry both financial as well as non-financial methods of remuneration are
followed.
Incentives Payments
It is seen that HRD are highly involved in deciding the incentives programmes. As this
department is involved in deciding the remuneration programmme, they are serving as the
foundations for most incentive plans. The management of these plans is collaborative. These
incentives schemes are for direct workers who work in batches, as well as for indirect workers.
Employee Benefits and Services
The HRD has a major role in the development and management of benefits programs. These
benefits are designed by HRD in order to suit the requirement of employee. And further, they are
sent to the top management for approval. Thereafter they are implemented. These benefits, which
are given to the employee, are both financial as well as non-financial.
Some of the benefits and services, which are practiced in the hotel industry are as follows:
Legally required payments
Old age, survivors, disability and health insurance
Worker’s compensation
Unemployment compensation
Contingent and deferred benefits
Pension plans
Group life insurance
Sick leave
Maternity leave
Payments for time not worked
Vacations
Holidays
Voting pay allowances
Employee Welfare
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Labour welfare refers to taking care of the well being of workers by employers, trade unions, and
government and non-government agencies. Recognizing the unique place of the worker in the
society and doing good for him/her retaining and motivating employees, minimizing social evils,
and building up the local reputation of the hotel are the arguments in favour of employee welfare.
Hence this area has generated one more area for practicing of HR roles.
Safety and Health Issue
Since the hotel industry, is the service industry, hence the safety and health aspects of employee
is concern for the organization, as employee are assets of service industry. The whole and soul
responsibility of employee health and safety measures lie on the shoulder of HR department.
Hence such types of measures reduce the chances of accidents.
Trade unions
Trade unions are voluntary organizations of employees or employers are formed to promote and
protect their interests through collective action. Contrary to popular perception, unions are not
meant only to organize strikes. Their presence is felt in all HR activities of an organization.
Unions have political affiliations. But some hotels experience tremendous pressure from these
trade unions whereas in some hotels trade unions are present for name shake only.
360 DEGREE PERFORMANCE APPRAISAL
360 degree appraisals are a powerful developmental method and quite different to traditional
manager-subordinate appraisals. As such a 360 degree process does not replace the traditional
one-to-one process - it augments it, and can be used as a stand-alone development method.
360 degree appraisals involve the appraisee receiving feedback from people (named or
anonymous) whose views are considered helpful and relevant.
360° Feedback is a proven method of helping individuals reviews their performance through the
eyes of their working colleagues.
The feedback is typically provided on a form showing job skills/abilities/attitudinal/behavioural
criteria and some sort of scoring or value judgement system. The appraisee should also assess
themselves using the same feedback instrument or form.
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BENCHMARKING
Benchmarking is the process of determining who is the very best, who sets the standard, and what
that standard is. In baseball, you could argue that seven consecutive World Series Championships
made the New York Yankees the benchmark. It is done to motivate people to improve toward that
goal.
Benchmarking is usually part of a larger effort, usually a Process Re-engineering or Quality
Improvement initiative. Benchmarking is a management tool that is being applied almost
anywhere. Once we decide what to benchmark, and how to measure it, the object is to figure out
how the winner got to be the best and determine what we have to do to get there.
FUTURE ROLE OF HUMAN RESOURCE IN STEEL INDUSTRY
Service quality and productivity were the most crucial competitive issues facing these firms.
When asked to different Company’s regarding strengthening competitiveness, 50 percent choose
internal management actions, including educating and training employees, with publicly
announcing employee policy. And all these procedure of implementing such task is over HR
shoulder.
To achieve a progressive, innovative culture within organization- and to cope with the critical
challenges that the future might bring- human resources professionals are likely to assume certain
roles with greater frequency. These roles are following:
The Consultant Advisor Role:- In particular, the top human resources executive will
increasingly play a major role in advising the CEO and the top management team about the
human resources implications of broad organizational strategy, both nationally and globally.
Further, the human resources department will be called upon more and more advice
management at all levels about the motivational, morale and legal implications of various
present and proposed practices and policies.
The Catalyst Facilitator Role: - The human resources directors have a unique opportunity to
serve in a catalyst-facilitator role in stimulating a top management philosophy, leadership
style and organizational culture and climate. It is important that management develops a clear
view of these interrelated matters and that management is self-conscious about them on an
ongoing basis. In addition, the human resources director can serve as a resource person about
these concepts and their links to organizational outcomes such as effectiveness, efficiency,
development and participant satisfaction.
The Diagnostic Role: - By this, they are expected to identify the underlying causes of an
organizational problem as distinct from its symptoms and to come up with solutions – or
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system for solving the problem- that correspond with the diagnosis. All too often, programs
of various kinds, like job enrichment, incentives systems, quality circles and so on, are
proposed by managers or human resources people. what is usually needed is an accurate
description of the problem to be solved, a careful analysis of the dynamics of that problem,
and a close look at alternative solutions and their rectifications before a program are
implemented.
The Assessment Role: - One of the most difficult roles for human resources professionals is
the assessment role, in which they assess the effectiveness of various human resources
practices and policies. A comprehensive evaluation of the effectiveness of various human
resources policies and practices is called a human resources management audit or personnel
audit. These comprehensive human resources audit may be used to analyze a wide array of
human resources practices and outcomes.
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CHAPTER -5
ANALYSIS AND
INTERPRETATION
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ANALYSIS AND INTERPRETATION
The following objectives are to be analyzed and interpreted:
To study the need and importance of HRD practices in JSW
The JSW’s HRD is bifurcated into different levels as follows
LEVELS POSITION
.L-8 Trainee
L-9 Junior Manager
L-10 Manager
L-11 Senior Manager
L-12 Asst General Manager
L-13 General Manager
The above levels are done for the smooth run of the HRD and to achieve the
Organizational objectives and Goals.
The JSW HRD has got many Systems such as
Performance appraisal system:
In this System the employees with skills and efficiency are recognized and are
appraised every quarter year. The performance appraisal is done in JSW using Tools
like Competency Mapping and Succession Planning.
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Compensation System:
The company provides its employees with good compensation which includes HRA,
Conveyance, CCA, DA and Other Benefits. This Helps in the boost of motivational
spirits of its Employees.
Employee Welfare System:
The company gives good accommodation’s for its employees by providing them
quarters in the JSW township ie, Vidhya Nagar. The company Conveyance Facility
for its employees to travel to and from its plant. The company provides its employees
with petrol allowance and car allowance.
Safety System:
The company takes many measures in ensuring the safety of is employees by giving
them proper instructions and providing them with many safety gears.
The JSW has got many development programs Such as
Training and Development Program:
The JSW follows training program from one day to one month or even more than one
month.
1) On the job method
a) Job rotation:
b) Training by experienced work man:
2) Off the job training:
a) Guest lecturers:
b) Demonstrations:
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c) Computer training
d)Technical training:
Management Development Program:
JSW also focuses in developing its top level management with the help of MDP.
MDP deals in giving effective training to its top level management and helping them
to understand the organizations goals and objectives.
Induction program:
JSW gives induction program to its newly hired employees so as to make them
know the company’s goals and objectives and also helps the new employees to set up
their personal goals.
The HRD practices of JSW is interpreted using General survey by using
questioner’s as follows:
The charts below represent the data collected using the questionnaire for measuring the
HRD practices of JSW.
RECRUITMENT
Options provided Response Percentage
YES 47 94
NO 0 0
NA 3 6
Total 50 100
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Source: Survey
By the above data it clears that 94 % of the employees say that the company has got
rehiring policy.
It reveals that the company has got good rehiring policies. It prefers the left out employees because of economic melt down.
Options provided Response Percentage
YES 35 70
NO 14 28
NA 1 2
Total 50 100
Source: Field Survey
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By the above data it clear that 70 % of the employees say that the company has job
rotation policy.
It reveals that the company has got good job rotation policy and it also help the employee to gain multiple job knowledge and job handling capacity.
Options provided Response Percentage
YES 42 84
NO 7 14
NA 1 2
Total 50 100
Source: Survey
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Interpretation:
By the above data it clears that 84 % of the employees say that the company has
referral scheme.
Inferences:
It reveals that the company has got referral scheme that means fresher can take the reference of any other existing employee to get placed.
PERFORMANCE APPRAISAL
Options provided Response Percentage
YES 38 76
NO 12 24
NA 0 0
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 76 % of the employees say that the company awards
for performance.
Inferences:
It reveals that the company has got an effective performance appraisal system.
Options provided Response Percentage
EVERY 3 MONTH 11 22
HALY YEAR 22 44
YEARLY 17 34
Total 50 100
Source: Survey
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Interpretation:
By the above data it clears that 44 % of the employees say that the frequency of the
performance appraisal cycle is half year.
Inferences:
It reveals that the company has got good performance appraisal cycle. Company goes for appraisal in every one month.
Options provided Response Percentage
YES 26 52
NO 21 42
NA 3 6
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 70 % of the employees say that the company has
variable pay policy.
Inferences:
It reveals that the company has got variable pay policy and it helps to increase the overall pay of the employee.
VEHICLE POLICY
Options provided Response Percentage
YES 44 88
NO 6 12
NA 0 0
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 70 % of the employees say that the company has
vehicle owning policy.
Inferences:
It reveals that the company has got good vehicle policy.
LEAVE POLICY
Options provided Response Percentage
CASUAL LEAVE 3 6
SICK LEAVE 2 4
PRIVILAGE LEAVE 4 8
ALL OF THESE 41 82
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 82 % of the employees say that the company has all
the leave policies i.e. casual leave, sick leave, privilege leave.
Inferences:
It reveals that the company has got effective leave policy.
RETENTION
Options provided Response Percentage
YES 34 68
NO 15 30
NA 1 2
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 68 % of the employees say that the company has got
retention programs.
Inferences:
It reveals that the company has got good retention policy.
Options provided Response Percentage
YES 16 32
NO 32 64
NA 2 4
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 64 % of the employees say that the company does not
provide any retention bonus.
Inferences:
It reveals that the company does not provide retention bonus.
TRAINING & DEVELOPMENT
Options provided Response Percentage
YES 46 92
NO 2 4
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NA 2 4
Total 50 100
Source: Survey
Interpretation:
By the above data it clears that 92 % of the employees say that the company has full
fledged T&D dept.
Inferences:
It reveals that the company has got effective T&D dept.
Options provided Response Percentage
FULLY 29 58
PARTIALLY 11 22
NIL 10 20
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 58 % of the employees say that their training needs
are met.
Inferences:
It reveals that the company has provided good and effective T&D program and ensures that all the requirements of employees are met.
Options provided Response Percentage
YES 37 74
NO 11 22
NA 2 4
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Total 50 100
Source: Survey
Interpretation:
By the above data it clears that 74 % of the employees say that they are nominated for
external programs
Inferences:
It reveals that the company allows its employees to take external training programs if required.
TRAVEL POLICY
Options provided Response Percentage
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YES 37 74
NO 12 24
NA 1 2
Total 50 100
Source: Survey
Interpretation:
By the above data it clears that 74 % of the employees say that the company has
travel rules applicable to different grades.
Inferences:
It reveals that the company has got good travel policy.
HIGHER EDUCATION
Options provided Response Percentage
YES 23 46
NO 17 34
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NA 10 20
Total 50 100
Source: Survey
Interpretation:
By the above data it clears that 46 % of the employees say that the company sponsors
for higher educations.
Inferences:
It reveals that the company sponsors for higher education for higher grades.
Options provided Response Percentage
YES 4 8
NO 41 82
NA 5 10
Total 50 100
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Source: Survey
Interpretation:
By the above data it clears that 82 % of the employees say that the company does not
sponsor for freshers.
Inferences:
It reveals that the company does not sponsor for all grades.
From the above charts we can clearly interpret the effective practices followed by JSW’s
HRD. So we can say that JSW’s HRD has good systems and policies.
TO STUDY THE EFFECTIVENESS OF JOB SATISFACTION IN JSW.
Scale Response Percentage
1 7 14
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2 5 10
3 11 22
4 17 34
5 10 20
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 35% employee get enough facilities to carry out their
job.
Inferences:
It reveals that the company provides good job facilities.
Scale Response Percentage
1 4 8
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2 3 6
3 18 36
4 10 20
5 15 30
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 35% employee believe that the company provides
good working atmosphere.
Inferences:
It reveals that the company provides good eork environment.
Scale Response Percentage
1 6 12
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2 4 8
3 19 38
4 16 32
5 5 10
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 37% employee get enough freedom to carry out their
job.
Inferences:
It reveals that the company provides freedom to carry out job efficiently.
Scale Response Percentage
1 3 6
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2 2 4
3 15 30
4 19 38
5 11 22
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 36% employee expect there appraisal by others.
Inferences:
It reveals that the company determines the job to be carried out by the employee.
Scale Response Percentage
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1 7 14
2 9 18
3 10 20
4 10 20
5 14 28
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 25% employees believe that they get good response
from their seniors to whom they have to report.
Inferences:
It reveals that the company maintains good employee-employer relationship.
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Scale Response Percentage
1 12 24
2 3 6
3 11 22
4 19 38
5 5 10
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 37% employees believe that they get good
encouragement from there seniors.
Inferences:
It reveals that the company provides good recognition system.
Scale Response Percentage
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1 8 16
2 1 2
3 11 22
4 12 24
5 18 36
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 35% employees believe that there opinions are taken
into consideration.
Inferences:
It reveals that the company provides good participation system.
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Scale Response Percentage
1 9 18
2 13 26
3 16 32
4 7 14
5 5 10
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 31% employees believe that there work is an
important part for achieving company’s vision.
Inferences:
It reveals that the employees are aware of the vision statement.
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Scale Response Percentage
1 7 14
2 6 12
3 11 22
4 17 34
5 9 18
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 37% employees agree that they had enough
opportunity to learn and grow in the work field.
Inferences:
It reveals that the company provides good scope to increase there knowledge.
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Scale Response Percentage
1 7 14
2 6 12
3 12 24
4 14 28
5 11 22
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 27% employees agree that best people in there
profession are ready to join their organization.
Inferences:
It reveals that the company has developed good brand image.
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Scale Response Percentage
1 10 20
2 6 12
3 16 32
4 15 30
5 3 6
Total 50 100
Source: Survey
Interpretation:
By the above data it is clear that 30% employees agree that they are informed about
the activities of the organization.
Inferences:
It reveals that the company informs about its activities.
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TO EVALUATE EFFECTIVENESS OF PARTICIPATIVE MANAGEMENT
IN JSW.
EMPLOYEE SATISFACTION ON THE WORKING OF PF
Options provided Response Percentage
Yes 37 74
No 10 20
NA 03 6
Source: Survey
Interpretation:
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By the above data it is clear that 74 % of the employees are satisfied of the working
of the participative forum in the company. And the 20 % of the employees are not
satisfied of the participative forum in the company.
Inferences:
It reveals the information that maximum number of employees are aware of the participative forum in the company
2. WORKING OF PF ENHANCES EFFICIENCY AND PRODUCTIVITY OF PLANT
Options provided Response Percentage
Yes 21 42
No 19 38
NA 10 20
Source: Survey
Interpretation:
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By the above data it is clear that 42 % of the employees are satisfied of the working
of the participative forum in the company that enhances efficiency and productivity.
And the 38 % of the employees are not satisfied of the participative forum in the
company.
Inferences:
It reveals the information that maximum number of employees are aware of the participative forum that helps to increase the productivity of the company
3. PF ENSURES PROPER FLOW OF TWO -WAY COMMUNICATION
Options provided Response Percentage
Yes 34 68
No 12 24
NA 04 8
Source: Survey
Interpretation:
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By the above data it is clear that 68 % of the employees agree that there will be
proper flow of communication in the company. And the 24 % of the employees are
does not agree.
Inferences:
It reveals the information that there will be free flow of communication in the participative forum.
4. EMPLOYEE SATISFACTION TOWARDS HEALTH, WELFARE AND SAFETY
Options provided Response Percentage
Yes 39 78
No 09 18
NA 02 04
Source: Survey
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Interpretation:
By the above data it is clear that 78 % of the employees are satisfied with the
company’s health, safety and welfare measures. And the 18 % of the employees are
not satisfied.
Inferences:
It ensures that the company is following fair health, safety and welfare measures.
5. DOES PF HELP TO INCREASE MOTIVATION AND COMMITMENT OF EMPLOYEE
Options provided Response Percentage
Yes 43 86
No 06 12
NA 01 02
Source: Survey
Interpretation:
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By the above data it is clear that 86 % of the employees agree that they get motivated
and show commitment because of participative forum. And the 12 % of the
employees are not satisfied.
Inferences:
It reveals that company has placed emphasis on employee motivation and commitment in order to achieve their goals.
6. EFFECT OF PF ON EMPLOYE-EMPLOYER RELATIONSHIP
Options provided Response Percentage
Yes 44 88
No 04 08
NA 02 04
Source: Survey
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Interpretation:
By the above data it is clear that 88 % of the employees agree that there is good
employee-employer relationship in the company because of participative forum. And
the 08 % of the employees does not agree with the same.
Inferences:
It ensures that the company is building proper employee-employer relationship in the company with the help of participative forum.
7. EFFECT OF PF ON COST REDUCTION, PRODUCTIVITY AND SAFETY
Options provided Response Percentage
Yes 37 74
No 13 26
NA 00 00
Source: Survey
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Interpretation:
By the above data it is clear that 74 % of the employees agree that the company can
achieve cost reduction and increase the productivity through group work. And the 26
% of the employees does not agree with the same.
Inferences:
It reveals that the company can achieve higher growth rate and productivity if they concentrate on the participative forum.
8. EMPLOYEE SATISFACTION ON THE LEVEL OF ATTENDANCE IN PF
Options provided Response Percentage
Yes 27 54
No 18 36
NA 05 10
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Source: Survey
Interpretation:
By the above data it is clear that 54 % of the employees agree that they participative
in the meetings. And the 36 % of the employees are not agreed.
Inferences:
It reveals the amount of interest that the company takes in order to make their employees participate in decision making
9. EMPLOYEE SATISFACTION ON ISSUES DISCUSSED DURING PF MEETING
Options provided Response Percentage
Yes 33 66
No 11 22
NA 06 12
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Source: Survey
Interpretation:
By the above data it is clear that 66 % of the employees are satisfied with the issues
discussed in the meeting and their implementation. And the 22 % of the employees
are not satisfied.
Inferences:
It reveals that the issues discussed in the meetings are taken into consideration in order to motivate the employees.
10. EMPLOYEE SATISFACTION TOWARDS THE INVOLVEMENT OF TEAM MEMBERS IN MEETING
Options provided Response Percentage
Yes 41 82
No 06 12
NA 03 6
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Source: Survey
Interpretation:
By the above data it is clear that 82 % of the employees are satisfied of the working
of teams and the involvement of members in the teams. And the 12 % of the
employees are not satisfied.
Inferences:
It ensures that company allows for proper team formation and active participation of employees.
11. VOLUNTARY SELECTION OF PARTICIPATION MANAGEMENT FORUM
Options provided Response Percentage
SMS-1 1 2
SMS-2 3 6
BP-1 2 4
BP-2 2 4
HSM 4 8
HRD 8 16
CRM 4 8
CMC 5 10
SAFETY 6 12
BOS 5 10
COREX PLANT 3 8
SP 2 4
PP 4 8
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Source: Survey
Interpretation: By the above data it clears that 16 % of the employees are satisfied of their work in
the HRD department and others are scattered among remaining departments.
Inferences:
It reveals that employees are interested in participative forum and are believers of group decision making.
FINDINGS OF THE PROJECT
The Training programs given in the company was almost satisfied by all the
employees.
Employees are not aware of all the appraisal techniques or decisions taken
towards the effectiveness of the employees.
The response of the employees for the suggestions is good and they are very
co operative.
JSW is a highly focused on human resources initiative. An employee is given
ample opportunities to learn and grow.
The safety and health measures of the employees are ensured by maintaining
safe processes, carrying out safe practices, providing a safe environment.
They provide proper training, issuing operation and inculcating safety
awareness measures.
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From the analysis and interpretation of the data we can find that participative
management is industrial democracy and authority to involve in organization
decision making.
JSW is union free organization so there will be no conflicts while forming the
group in order to take group decisions.
The company has good employee retention techniques.
The company provides better involvement of employee in decision making
and ensures job satisfaction.
All the HRD policies followed by the company are in employees favor and it
has given good opportunity to improve employee and keep up his morale.
SUGGESTION S OF THE PROJECT
Feedback should be immediately given so that the employees come to know
the status of their performance.
The importance of the Participative forum should be explained to all the
employees so that they take keen interest in the process.
The company must place emphasis on worker’s education scheme in order to
motivate them to take effective participation in group discussions.
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Organization must allow free flow of communication between different levels
of management.
Training Effective Sheet should be sent to all trainees before the training is
conducted. So that they can measure their knowledge and understand the
parameters before training program is conducted.
Training in advanced technical areas along with practical knowledge has not
been forthcoming. There is' a need to update and redesign the content of the
training programs as per the requirement of the job.
The company must concentrate more on the welfare and safety measures of
the employee and fulfill their basic needs.
The company must give good working environment and must assign right
person with right job.
Employee satisfaction must be of higher importance.
Company must adopt all the new techniques to appraise the performance of
the employee and find the level of their competencies.
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CONCLUSION
JSW under the leadership of Mr. Sajjan Jindal has shown tremendous improvements and
has secured third place among the largest Steel makers after SAIL and T ATA Steel.
JSW has created significant reputation from customers as well as public. They always
believe in innovating new things, taking challenge, making changes and also believe that
they are the future for steel and hence their caption is "we innovate the future".
In the field of HRM it is obvious that the management tends to develop the potential of
the employees towards the desired goals of the' organization. While carrying out this
process, the management should focus its attention mainly on HRD policies and
practices. With the advent of advancement in technology and infrastructure in industries
the top management must aim at conducting HRD programs at all levels in order to equip
their employees with the required potential towards desired goals and target of the
organization. And also concentration should be given on measuring Training
effectiveness and adopt sophisticated techniques to identify the needs of HRD which
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helps in knowing employees requirements for their self development as well as
organization development.
QUESTIONNAIRE TO STUDY BEST HR PRACTICES
I, Anand. C, MBA student of AKIM, Bellary I am conducting a survey to study the Best HR Practices in JSW. It would be of great help if you could fill in the following questionnaire.
Q. RECRUITMENT
1. Do you have a rehiring policy?
a) YES b) NO
2. Do you have a job rotation policy?
a) YES b) NO
3. Does the company have a referral scheme?
a) YES b) NO
Q. PERFORMANCE APPRAISAL
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1. Are there any performance awards?
a) YES b) NO
2What is the frequency of the performance appraisal cycle?
a) EVERY 3 MONTHSb) HALF YEARc) YEARLY
3. Do you have a variable pay policy?
a) YES b) NO.
Q. VEHICLE POLICY:
1. Does your company has vehicle owning policy?
a) YES b) NO
Q. LEAVE POLICY:
1. Does your company has which of the following leave policies?
a) Casual Leave: b) Sick Leave:c) Privileged Leaves: d) All of these
Q. RETENTION 1.Is there any retention programs in the company?
a) YES b) NO
2. Does the company provide any retention bonus?
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a) YES b) NO
Q. TRAINING & DEVELOPMENT:
1. Is there a full fledged T&D dept in your company?
a) YES b) NO
2. To what extent are your training needs met ?
a) FULLY b) PARTIALLY c) NIL
3. Are your employees nominated for external programs?
a) YES b) NO
Q. TRAVEL POLICY:
1. Does your company have travel rules applicable to different grades?
a) YES b) NO
Q. HIGHER EDUCATION1. Does your company sponsor for higher education?
a) YES b) NO
2. Does your company sponsor for fresher’s?
a) YES b) NO
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QUESTIONNAIRE ON JOB SATISFACTION
Q1. I am provided adequate facilities to do my job.
Q2. I believe that the work atmosphere is friendly.
Q3. I am given adequate freedom to do my job efficiently.
Q4. I know what is expected of me at work.
Q5. I am kept informed about the activities that go on in my organization
Q6. I have had opportunities at work to learn and grow.
Q7. My superior, that is the person I report to seems to care about me as a person.
Q8. At work, my opinion seems to count.
Q9. The best people in my profession are keen to work with my
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organization.
Q10. The purpose of my company makes me feel that my job is important.
Q11. My superior encourages my development.
QUESTIONNAIRE FOR MEASURING THE EFFECTIVENESS OF THE PARTICIPATIVE FORUM
1. Are you satisfied with the functioning of participative forum in jsw?
YES NO NA
2. Does the functioning of participative forum enhances the efficiency of the employee and the productivity of the plant?
YES NO NA
3. .Does the participative forum ensure the proper flow of two-way communication between the management and the employee?
YES NO NA
4.Are you satisfied with the general health, welfare, safety measures taken for employees?
YES NO NA
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5. Does participative forum helps to increase the efficiency of accommodation, motivation and commitment to employees?
YES NO NA
6. Has participative forum built up the better employer-employee relationship in the jsw?
YES NO NA
7. As the company emphasis on productivity, cost reduction and safety. Does the participative forum laid emphasis on these factors?
YES NO NA
8. .Are you satisfied with the level of attendance in the meetings of participative forum?
YES NO NA
9. Are you satisfied with the issues discussed during the meetings of participative forum meet?
YES NO NA
10. Are you satisfied with the involvement of team members in the meetings? YES NO NA
11. If you have a opportunity, in which of the participative forum would you like to be nominated?
SMS-I SMS-II BP I BP-II HSM HRD
CMC BOS SAFETY
CRM PP SP
CP
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Any Suggestions: -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
BIBLIOGRAPHY
Books:
Human resource development By SUBBA RAO
Human resource development By ASHWATAPPA
Journals:
Jindal's Induction Manual.
Annual Company policy of JSW
Websites:
www.jswindia.com
www.google.com
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