INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD

SUBJECT: HUMAN RESOURCE MANAGEMENT

TOPIC: HR PRACTICES IN TATA STEEL

A STUDY

SUBMITTED TO SUBMITTED BY-

PROF. SWETA MITTAL GANGADHAR G.

KAPIL CHOUDHARY

KSHITIJ PANDEY

KUNAL

DECLARATION

This is to certify that the Team Members of PGDM_IT (Full time), 2009-2011 batch , IMS Ghaziabad, have done this project under the supervision and guidance of Dr. SWETA MITTAL (Associate Prof.: HR)

This work is done solemnly by the group members and has never been published or done before by any institute / university.

All the information provided is true to the best of our knowledge.

Name & signature of the student

Kunal Saurabh (09096)

Kapil Chaudhri (09091)

Kshitij Pandey (09094)

Kushal Chandani (09097)

Madhav kr. Jha (09098)

Gangadhar. G (09073)

Saurab Chaturvedi

Vijendra Solanki

Aditya Agarwal

ACKNOWLEDGEMENT

We take this opportunity to express our sincere gratitude to the following personalities without whose help & guidance the successful completion of our project work would have been remained a dream.

We extend our heartful thanks to Mr.VINAY PANDEY(SR. MANAGER (HR/IR), TATA STEEL, WEST BOKARO DIVISION for his constant and valuable guidance through out the course of completion of this project.

We would also like to express our gratitude to Dr. SWETA MITTAL (Associate prof. HR) for her support and guidance in the completion of this project.

Finally , we would like to thank all our friends and faculty who helped directly or indirectly.

TABLE OF CONTENTS

1. OBJECTIVE ………………………………………….. 01

2. INTRODUCTION TO TATA STEEL………………..02-03

3. HR PARCTICES:AN INTRODUCTION…………….04

4. HR POLICIES OF TATA STEEL……………………05

5. EMPLOYEE WELL BEING………………………….06-07

6. REWARDS AND RECOGNITION…………………..08-09

7. EDUCATION,TRAINING&DEVELOPMENT……..10-13

8. BENCHMARK PRACTICES…………………………14

9. NEW HR INITIATIVES……………………………….15-18

10.CONCLUSION…………………………………………19

11. BIBLIOGRAPHY……………………………………..20

OBJECTIVE

TATA STEEL serves as an icon for an Employee Centered Organization. It has a reputation amongst the society and has also won the DEMING AWARD 2008 for the best HR PRACTICES. So we had a great interest in studying the HR practices that are carried out in TATA STEEL.

The objective of our project is to study the HR PRACTICES carried out in TATA STEEL based on their HR POLICIES.

We also aim to study the future plans of the HR department of TATA STEEL in terms of their HR PRACTICES.

INTRODUCTION TO TATA STEEL:

From 100 glorious years of experience in steel making, Tata Steel is among the top ten steel producers in the world with an existing annual crude steel production capacity of 30 Million Tonnes Per Annum (MTPA). It is Established in 1907, became first integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and a Fortune 500 Company.

Tata Steel is present globaly in over 50 developed European and Asian markets, with manufacturing units in 26 countries.

It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first branche was opened into the soil of Sakchi.  His leadership style helped Tata Steel overcome several periods of adversity and strive to improve against all odds.

Tata Steel`s Jamshedpur (India) Works has a crude steel production capacity of 6.8 MTPA which is going to increase to 10 MTPA by 2010. The Company also has proposed three Greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India with additional capacity of 23 MTPA and a Greenfield project in Vietnam.

Tata Steel has created a manufacturing and marketing network in Europe, South East Asia and the pacific-rim countries through investments in Corus, Millennium Steel and NatSteel Holdings, Singapore, . Corus, which manufactured over 20 MTPA of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium.

Tata Steel Thailand is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MTPA. Tata Steel has proposed a 0.5 MTPA mini blast furnace project in Thailand. NatSteel Holdings produces about 2 MTPA of steel products across its regional operations in seven countries.

Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market.

The iron ore mines and collieries in India give the Company a distinct advantage in raw material sourcing. Tata Steel is also striving towards raw materials security through joint ventures in Thailand, Australia, Mozambique, Ivory Coast (West Africa) and Oman. Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, Tata Steel has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining.

Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome plant in South Africa and setting up of a deep-sea port in coastal Orissa are integral to the Growth and Globalisation objective of Tata Steel.

Tata Steel’s vision is to be the global steel industry benchmark for value creation.

Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality Management.

HR PRACTICES: AN INTRODUCTION

A company’s very foundation is its employees. The employees of a company lay down the building blocks and works upon strengthening it. We can also say that a company’s future is decided by the employees, giving their heart and soul to the company.

So, HRD(Human Resources Development) or HRM (Human Resource Management) is considered to be a very important department in any organization.

Human resources relate to how employees are managed by organizations or it may also refer to the personnel department which adhere to the role of managing employees in the very organization. This field uses concepts developed in Industrial/Organizational Psychology. HRM deals with hiring, firing, training, and other personnel issues.

The modern concept of human resources originated from TAYLORISM in the early 1900s. By 1920, human resource movement was started by the psychologists and employment experts in the U.S, which viewed workers in terms of their psychology and fit with companies. This movement emphasized on how leadership, cohesion, and loyalty played important roles in organizational success and by 1960s human resources development gained a permanent role within organizations as a central theme in development policy.

The HR department of any company thus, have HR PRACTICES that they develop on the basis of their HR POLICIES which helps them achieve the company goals and objectives effectively and efficiently. Therefore, HR PRACTICES covers all the activities like recruitment, development and management of employees.

TATA STEEL is one such company which has rich HR PRACTICES which are purely based on their HR policies.

It was Tata Steel’s Human Resource practices - recruitment policy, development & learning, work environment, rewards & recognition, health & well-being, balance of work and personal life for employees as well as financial security for them - which ensured that it was counted among the top companies in a survey conducted to determine the Best Employers in the country.

The company was ranked sixth among India’s Best Employers in 2003 by Messrs Hewitt Associates and Business Today.

HR POLICIES OF TATA STEEL:

TATA STEEL recognizes that its people are the primary source of its competitiveness.

It is committed to equal employment opportunities for attracting the best available talent and ensuring a cosmopolitan workforce.

It will pursue management practices designed to enrich the quality of life of its employees, develop their potential and maximize their productivity.

It will aim at ensuring transparency, fairness and equity in all its dealings with its employees.

TATA STEEL will strive continuously to foster a climate of openness, mutual trust and team work.

HR PRACTICES

EMPLOYEE WELL BEING AND SATISFACTION

Employee well being and their satisfaction is the primary concerns of TATA STEEL.

The various hr practices that are categorized under this title are as follows:

Housing:Tata Steel provides free housing to all its employees which also includes free electricity and free water supply. In some of its colonies meters have been introduced but a free package of 2000 units is given to each and every employee.

Civic Amenities:Sanitation, Drinking water, Roads, Community halls, Parks & Playgrounds. These civic amenities are also provided by TATA STEEL to all its colonies.

Recreation facilities:The employees of Tata Steel are provided with a Recreation Club in each colony where Cultural programmes, Indoor and outdoor sports are conducted at a regular basis.

Canteen Services:Subsidised Canteen for both, the workers as well as officers offers three time meal. Tea & snacks are also served to employees. As a new measure, canteen services have also been made available on Sundays.

Medical facilities:TATA STEEL has its own private hospitals in every colony. TATA MEMORIAL HOSPITAL at Jamshedpur has a capacity of over more than 600 beds and has the best of the facilities available in medical terms. It also provides free outdoor & indoor treatment for employees and their eligible dependants. Concessional treatment to non-eligible dependants are also available.

Others:TATA STEEL provides Retirement benefits like Provident Fund, graduty, farewell gifts etc. to all its employees. It practices employee reduction through ESS(Early Separation Scheme) in which it pays the monthly salary of the employee till the age of 60 years. It also provides free domestic coal and petrol from company gas station and also provides reimbursements of cooking gas charges.

REWARDS AND RECOGNITION:

TANGIBLE SCHEMES

These schemes are directly linked to production and productivity. If the employee crosses or touches the mark set for him, he is rewarded for his hard work . This record is kept by Industrial Engineering Department (IED). It keeps track of all emloyees capacity of production and decides upon incentives as per various parameters listed here below.

a) time study

b) past performance

c) daily performance

d) manpower employed to carry out a particular task

e) production potential

Keeping these parameters into consideration, various incentive schemes are devised and employees rewarded accordingly without any bias. As it directly links with productivity, the rate of incentive increases as productivity increases. We now see some incentive schemes.

SHABASH scheme

This scheme goes in for instant reward. Generally the reward is in the form of gift voucher of Rs. 200. Its a sort of instant recognition of good work done at departmental level. It is also awarded for how safely and honestly the work has been accomplished.

Vouchers of Rs.250 are also awarded once in a month at shabash diwas organized every month. An employee can receive more than one voucher based on the quality of job done by him.

SHABASH day

This day comes once in a month when the monthly works of each employee is scrutinized and effective employees being awarded gift vouchers of Rs 200.

Suggestion Box Scheme (SBC)

TATA STEEL welcomes each and every employee’s valuable suggestions to make the work place more convenient, prevent wastage of inventories and increase upon profits.

10% share of the profits incurred as a result of the suggestion given by the employee is awarded to him.

INTANGIBLE SCHEMES

These schemes are also a sort of recognition award which takes inspiration from japanese word KAIZEN which advocates for improvement at different levels. It is managed by Small Activity Group( SGA ). Under this there may not be direct monetary benefits but there is recognition at much higher level which can satisfy and motivate an employee even more. In fact it adds feathers to his/her professional career.

Prime Minister SHRAM award:

Each year nominations are sent for coveted prime minister SHRAM award. Tata steel too forwards the name of its most efficient employee for this. This is one of the aim of every worker to be honoured by prime minister. Even if the nominated employees don’t get the award, they are awarded within the TATA fraternity.

PERSON OF THE MONTH

The best employee of the month gets a chance to fulfill his ESTEEM needs.

This employee gets recognition in his department. His photograph is put on the notice board and is also published in the company’s magazine.

This motivates the employees to put up good work, upto a great extent.

BONANZA SHABASH

This bonanza offer is for one employee each from each department per year. This is a bigger prize awarded for consistency in work throughout the year. There is a special holiday package of 2days and 3 nights. So this scheme takes care of employee's family too.

EDUCATION, TRAINING AND DEVELOPMENT

TATA STEEL deals with administrative issues regarding its workers such as the wage agreement. Following to the negotiations with the UNION, it incorporates TCWA (Tata Coel Wage Agreement/Settlement). TCWA originates from NCWA (National Coel Wage Agreement) which is listed under the Industrial Disputes Act.

TATA STEEL’s competitiveness lies with the highly skilled employees and the credit goes to the Training and Development program carried out by the HR Department.

4-Q BASED TRAINING:

The 4-Q based training is Skill Gap Analysis also known as the Toyota Model.

Fig.01:Toyota Model

The employees of TATA STEEL are ranked according to the competencies and knowledge level identified through meetings or interviews. The employees are then

BeginnersUnder supervision

IndependentGuide, teach & train others

placed accordingly into one of the above quadrants.

For example, there is a foreman who looks after the maintenance of transformers. So, based on his knowledge and skills he is placed into the third quadrant but if he’s found to be a non-performer (judged through pre-tests and post tests), he is placed into the second quadrant and is put under training.

A training module is designed for these kind of skill gap employees. A post-test is again conducted to judge the skill level of the employee(foreman) and based on the result he’s again placed into one of the four quadrants.

This model is applicable to every posts & every employee in TATA STEEL.

TRAINING ON WHEELS

A unique practice carried out by TATA STEEL is TRAINING ON WHEELS.

It has engaged a bus equipped with LCDs, posters and powerpoint presentations so that it is able to train their employees on the spot. This on the spot training saves the extra time which may be consumed while training the employees at the training centre. The various areas in which TRAINING ON WHEELS participates are as follows:

Safety Costs Quality Gears & switch boxes

ASSISTANCE OF EXTERNAL AGENCIES:

OEM-Original Equipment Manufacturers:

Tata Steel uses heavy equipments like the DUMPERS (purchased from CATERPILLAR) and SHOVELLS (purchased from HITACHI).

So, it asks the OEMs i.e. HITACHI & CATERPILLAR to train the employees on how to operate their machines in return of which these OEMs charge some amout.

CBWE-Central Board for Worker’s Education:

TATA STEEL also involves the CBWE to train their employees in various fields such as:

High team performance Behavior within the organization Personality development Communication skills Technical skills

GREEN TRAINING PROGRAM:

TATA STEEL has a special training program for the raw hands i.e. the beginners (at workers level). The GTP aims at developing trainees as trainers.

The special features of the GREEN TRAINING PROGRAM are as follows:

Green trainees trained as trainers

Trained to handle all possible types of emergencies.

Reduction in training period from conventional 24 months to 6 months.

For instance, TATA STEEL at its West Bokaro Division trained its low performing as well as willing clerks as dumper operators in just 6 months. They conduct a SIMULATOR (the only one in India) Based Skill Test.

This helped TATA STEEL retain its image and get new vacancies for the clerical position as well.

SAFETY

TATA STEEL lays stress on the safety of their employees working in the mines. They are provided with

PPE(Personal Protective Equipment)- the employees are provided with-

Helmets

Special shoes

Nose guard

Gloves

Safety goggles

Safety belts

The safety of the employees and their families are also looked upon beyond the premises premises. At the West Bokaro Division, TATA STEEL has incorporated the use of helmets and seat belts while driving; to the failure of which it penalizes the employees with a cut down of one day’s salary.

SOME BENCHMARK PRACTICES:

7 days working

Staggered weekly day of rest and canteen breaks

Two grade system without supervisory level

Semi-mobile canteens and field offices

Ergonomically designed equipments

Competency mapping

PROPOSED NEW HR INTITATIVES AT TATA STEEL

ROLES & RESPONSIBILITES:

All the employees should be clear on the roles and responsibilities they are to perform. This exercise is possible when the Job descriptions of each employee are clearly defined and they are well aware of the outcomes expected from them. This

shall also provide as enabler for the Performance Management system, which shall encompass the roles, responsibilities and the expected outcome from each of the employees. Though the officer cadre will be governed by the KRA’s at least the non – officer cadre should be benefited out of this exercise.

Similarly all employees should be clear conversant about the compensation packages, performance bonus system and also all the policies and procedures of the Company.

PUNCHLINE: “ IF THE EMPLOYEE IS CLEAR OF HIS ROLE, HE WILL MORE EFFECTIVELY PERFORM TO THE BOTTOMLINE FOR THE COMPANY”.

SHARING THE VISION :

All employees including officers are to share the Vision, Mission, Values and Pride (MVVVP) of TATA STEEL and once it is formalised they are to be displayed in each and every part of TATA STEEL including the Vehicles, work sites and crib rooms. The strategy of this workshop will be worked out in due course of time.

PUNCHLINE: “TRANSLATE / SHARE THE OBJECTIVES INTO INDIVIDUAL’S TO MARRY WITH THEIR PURPOSE.”

OPEN COMMUNICATION FORUMS :

The underlying theme behind this proposal is from the existing system of JDC’s in Company, which to the personal views of the certain executives of the Company has become a platform for the Union to press in their demands and facilities. The genesis which these were started long back was to have a dialogue with the people working with them, more so in such a large organisation with thousands of employees spread in multi locations and departments it would have been impossible for the Management to communicate with them all together or even very

frequently.

Hence, it is proposed to start Open Communication forums as exiting in the Officer’s level at three layers, to start with, first at the Supervisors/ Front line officers level where they communicate the employees the project’s targets, expected outcome and other relevant production details. Second level would with the Chief, which can be monthly or bi- monthly where other than production, work related issues like costs and project’s contribution in the division’s total outcome can be discussed. Third level will with the GM, Quarterly or bi- annually where issues relating to the Division and matters pertaining to Quality, improvement projects, community services and also the Company’s progress as a whole including the division’s contribution can be discussed.

PRODUCTION MEETINGS:

In every shift to being with there will be production meeting (preferably under the guidance of the Shift Supervisors/ Front line Officers) of team members which shall be set forth in the Performance bonus plan example: Shovel & Dumper team who will be primarily responsible for the removal of OB or Coal or the Drilling & Blasting team or Haul road team. The underlying genesis of this practice is to define the outcome to the Worker and let them decide their way to achieve the same under given boundary condition for each shift, instead to guide them at every stage of the process. The guiding principle will be that all are required to achieve a certain level of production or target and they’ll also be interested to earn the bonus as per the Performance bonus plan so let them decide. The Shift Supervisor/ Front line Officer shall play the role of a facilitator in guiding them and to see that they do not start playing with the machine i.e. primarily to protect the equipment from any unintentional damage.

The frequency of these meetings can be varied to weekly or maximum fortnightly. But we have to provide them with the enablers a room on the Shop floor and other such instruments.

PUNCHLINE: “DEFINE THE OUTCOME AND LET THEM DECIDE THE ROUTE TOWARDS ACHIEVING THOSE OUTCOMES.”

IMPROVEMENT PROGRAMMES:

To motivate an employee to give his best we have to provide him with enablers so that he can give his best and in turn the Company is also benefited. From the very beginning we have induct every employee to be part of improvement groups like Suggestion scheme, TQM, Quality circles or even TPM. They should all be part of the small group activities (SGA) only after due exposure is given to them on these

techniques (may be repetition) but each and every employee at SEB has to contribute in the Company’s growth vis-à-vis these SGA’s.

Maybe at a later date i.e. in the second year let them be part of the selection process to select personnel for the second year.

PUNCHLINE: “TO MOTIVATE EACH PERSON TO GIVE HIS BEST AND MAKE COMPANY PERFORM BETTER”

TRAINING:

All personnel to be regularly trained on the Simulator to allow them to improve their weak areas of operation and at the same time allow them to be trained on the behavioural aspects through focussed training in order to improve their weaknesses which have been identified at the time of selection or later during the course of their performance review.

PUNCHLINE: “ GIVE EVERY EMPLOYEE AN OPPURTUNITY TO LEARN & IMPROVE HIS WEAKNESSES, AND PROVIDE THEM ENOUGH OPPURTUNITY BY WAY OF TRAINING”

PERFORMANCE MANAGEMENT SYSTEM:

To enable all employees to with a continuous feedback on the achievements and failures vis-à-vis their behaviour and also technical feedback (in addition to the Simulator).

Part of this programme can be to give short note or a card with words like ‘I Appreciate You’ written on one side and the reason for praise on the other side this

can become part of the formal Performance review/ assessment. Alternatively both positive and negative feedback can be started off with. The quicker the response in this the better the mileage in terms of behaviour improvement and other things.

Secondly, based on the learning’s we have from the officers appraisal system when it is in place and also from the CRM performance system we can integrate the two and develop a new system, which is more conducive to our kind of environment/workings, or Work culture.

PUNCHLINE: “PROVIDE CONTINOUS RESPONSE AS QUICKLY AS POSSSIBLE, IRRESPECTIVE OF WHETHER IT IS NEGATIVE OR POSITIVE”

WORK CULTURE ENABLERS FEEDBACK:

Learning from the existing system wherein all the employees are surveyed on the ESI Scale, a similar scale shall be developed wherein all the measures to ensure the ‘Desired Work Culture’ are scaled and a constant monitoring / review to enable the envisaged work culture is done.

ENCOURAGE PEOPLE TO HAVE RELATIONS:

In terms of the frequent visits be the employee’s family to the vehicles / work area or picnic’s to nearby out locations for get – together to know colleagues and their families well which shall generate bondage between them and help the company reap benefit from these relations in the long run.

PUNCHLINE: “ PEOPLE WHO HAVE RELATIONSHIP AT WORKPLACE ARE HAPPIER AND WORK BETTER. ALLOW THESE RELATIONS TO FLOWER.”

BIRTHDAY’S / ANNIVERSARIES:

All employees shall be on their Birthday’s / Marriage Anniversaries as per the office record available shall be issued a letter congratulating them, from the office of not less the Chief and this letter shall reach the employee preferably on the start/end of his shift of the same date. The contents of this letter shall be varied in terms of the Language so as to avoid monotony of the same.