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Modernization of Mind at Tata SteelAuthor(s): Mirza S. SaiyadainSource: Indian Journal of Industrial Relations, Vol. 36, No. 3 (Jan., 2001), pp. 363-375Published by: Shri Ram Centre for Industrial Relations and Human ResourcesStable URL: http://www.jstor.org/stable/27767731Accessed: 26-01-2016 18:27 UTC
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8/19/2019 tata steel tu case.pdf
2/14
IJIR,
Vol.
36,
No.
3,
January
2001
CASE
STUDY
MODERNIZATION OF
MIND
AT TATA
STEEL
Mirza
S.
Saiyadain
INTRODUCTION
TATA STEEL
enters
the
ew
millennium
with the
confidence
f
learning,
knowledge
based
and
a
happy
organisation.
We
will
establish urselves
s
the
supplier
f
choice
by
delighting
ur cus
tomers
with
our
services
and
our
products.
In
the
coming
decade,
we
will become the
most cost
competitive
steel
plant
and
so serve
the
community
and
the
nation.
Where
Tata
Steel ventures.others will
follow.
So
goes
the
vision
statement
of
Tata
Steel;
a
vision
that
took
its
roots
in
the
year
1839
when
a
boy
was
bom
in
the
priestly
Parsee
family
at
Navsari,
a
small
town
in
Gujarat.
On
his
birth
the
sooth
sayer
predicted
that
ome
day
he would be well known
and
famous.
And
so
it
ame
to
pass.
This
was
the
time
in
the
history
when British
government
had
initiated
a
number
of
reforms
to
provide
a
climate
of industrialisation
in
India.
Those
days
the
mining
rules
were
sim
ply
a
fair
illustration of the normal demeanour of the
government
towards
businessmen
in
India
(Harris 1958).
In
1899
Lord
Curzon,
the
Viceroy,
liberalized the mineral concession
policy
and
opened
doors for Indians
to
venture into
the
industrialisation
of
India
(Lala,
1981).
However,
much
before this
n
1882
the
boy,
born
43
years
ago,
Dr. Mirza
S.
Saiyadain
is
FORE
Chair
Professor,
FORE
School of
Management.
Case
material
of FORE
School
of
Management,
New
Delhi is
prepared
as a
basis
for class discussion. Cases are not designed to present illustrations of either correct
or
incorrect
handling
of administrative
problems.
Copy right
2001,
FORE School
of
Management,
New Delhi.
The
author
is
grateful
to
FORE
School
of
Management
for
providing
financial
support
in
the
preparation
of
this
case.
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8/19/2019 tata steel tu case.pdf
3/14
364
Indian
Journal
f
ndustrialRelations
read
a
report
by
German
geologist,
Ritter Von
Setriwartz
on
the avail
ability
of
iron
ore
in
Chanda
district
in
the
Central Province
(now
Madhya
Pradesh)
which
gave
him
the
idea of
giving
India
a
Steel
plant.
The
boy
was
Jamsetji
usserwanji
Tata
and
the
plant
Tata
Steel.
J.N.
Tata's
incessant
efforts
got
Charles
Page
Perin,
a
consulting
engineer
from
New
York,
to
conduct
a
survey
of the
availability
of
raw
material and
Julian
Kennedy
of
Pittsburg
to
build
the
plant.
The site
chosen
was
the
village
of
Sakchi,
the
meeting point
of
two
riversKhorkai and Subernareka which
provided
themuch needed
water.
The
required
capital
came
from
8,000
investors who sub
scribed
to
the
shares
floated
in
Indian market.
The actual
construc
tion
of
plant
began
in
autumn
of
1908 and
it
poured
its
first teel
on
February
16,1912.
The steel
plant
did
not
develop
around
a
town
but
brought
along
a
town
in
its
wake. On
January
2,
1919
Lord
Chelmsford visited
iron and
steel
works.
He
renamed the
town
of
Sakchi
as
Jamshedpur
in
honour
of the
man
who
gave
India its
first
integrated
ironmill
(Pandey, 1989).
Tata
Steel,
India's
largest fully integrated
private
steel
plant
is
comparable
with
any
integrated
steel
plants
in
the
world.
Today
the
House of
Tatas
owns
close
to
25
per
cent
of
its
equity
and
the
company
has
an
asset
base of
over
9000
crores.
Export
volume
is
about 0.426
million
tonnes
equivalent
to
US$
170
million.
It
grew
from nitial
capacity
of
0.1
million
tons
in
1912 to
3.89
million
tons
by
year
1990-2000.
Besides
going
through
theusual
teething
prob
lems,
Tata
Steel
experienced
a
number of
more
serious
problems.
It
went
through
a
13
month strike:
making
steel
became
less
cost
ef
fective,
competition
with
foreign
and
local steel manufacturers
be
came
severe
and
consumers
started
shifting
their
loyalty
to
local
manufacturers of
recycled products.
TECHNICAL
MODERNIZATION
For
Tata
Steel
it
became
necessary
to
reorient
itself
to
new
think
ing
and
approach.
Modernization became the
guiding principle.
Tata Steel started theprocess of
closing
down old units and
setting
up
new
ones
in
4
phases
of technical modernization.
The
process
of
modernization started
in
1980
and
went
on
till 1997.
The four
phases
varied
in
terms
of time
period
as seen
below:
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8/19/2019 tata steel tu case.pdf
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8/19/2019 tata steel tu case.pdf
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366
Indian
Journal
f
ndustrial
Relations
way
employees
think.All thiswas done to
bring
about customer
sensitivity,
cost
consciousness,
improve productivity
and
create
better
working
and
living
conditions.
The
new
HR
policy
aims
at
ensuring
transparency,
fairness,
and
equity
in all
its
dealings
with
its
employees.
?Tata
Steel
will strive
continuously
to
foster
a
cli
mate
of
openness,
mutual
trust
and
team
work.
?-
Tata
Steel
recog
nizes
that
its
people
are
the
primary
source
of
its
competitiveness.
Steel is
an
extremely
protected,
capital-intensive
industry.
It
was
becoming
a sunset
industry
and hence
capital
investment was made
in
modernizing
the
plant.
While
Tata
Steel,
as
a
company,
is
very
old
its
plants
have become
very
modern. To be able
to
work
on
the
modern
plants
it
was
necessary
to create
a
knowledge
based
learn
ing organisation,
which
is
possible
if
the
minds
are
open.
There
was
a
need
to
create
a
will
to
work
and
will
towin.
While the
formal
Phase
V,
'Modernization
of
Mind'
started
on
April
1,1999
work
had
already
been
underway.
Long
before
Tata
Steel
had
recognized
the
need
to
make
change
in
their
way
of
thinking,
nvestment
in
chang
ing
their attitude and culture was
already
initiated. We have been
very
successful. However continued
success
is the
greatest
enemy
of
change.
Change
had
been
accepted
but
the
pace
of
change
had
to
be
improved.
Hence
an
on-going
non-time
bound
change
process
must
go
on
all
the
time.
Wedded
to
Steel
industry
we
did
not
want
to
die
with it
so
change
became
a
part
of
our
thinking
articularly
in
the
light
f
changes takingplace
in
the
environment because of
glo
balization,
liberalization
and
opening
of
Indian
economy.
The
proc
ess
of
acceptance
of
change
was
initiated
through
a
variety
of
pro
grammes,
significant
among themare
briefly
described below.
CUSTOMER
ORIENTATION
If
we
do
not
take
care
of
our
customers?some
one
else
will .
This
declaration
aptly
summarises
the
feeling
that shift
ust
take
place
in
making
customer
delight
as
the
major
focus
of
all
its
en
deavours. The
shift
became
imperative
because
the
environment
(pre-1992)
was
predictable,
concessional
finance
in
close
markets
was available and the focus was on
promoter's
wealth and social
objectives.
Post
1992,
this
changed
to
uncertain
environment,
mar
ket
based
finances
in
globally integrated
markets
and
focus
on
share
holders value.
Similarly, pre-1992
there
was
a
virtual
SAIL,
TISCO
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Case
Study
367
duopoly
ina sellersmarketwith no
emphasis
on
quality,
customer
service
and
cost
reduction.
Post-1992
over
capacity
was
generated
because of
the
entry
of
new
players
(Essar,
Jindal,
spat, Lloyds)
cre
ating
a
buyers
market,
players
competing
on
price
and hence focus
shifting
to
cost
reduction
and
quality
improvement.
Tata
Steel has
a
customer
base of
over
5000
customers out
of
which 158 have been identified
s
key
customers
accounting
for
1
per
cent
of the total
business. One
per
cent
increase
in
sale
to
key
customers contributes Rs. 1.8 crores. Tata Steel ensures
preferential
treatment
to
these
key
customers
in
the
area
of
redressai
of
com
plaints
and
quick handling
of accounts.
An
Enterprise
Resource
Planning
System
has been
implemented
to
improve
availability
and
analysis
of
customer
needs and
other market
demands,
stock
man
agement,
quality
assurance
and accounts
management.
Tata
Steel
has
wholeheartedly
accepted
Mahatma
Gandhi's
ob
servations
on
customers.
A
customer
is themost
important
visitor
on our
premises.
He is not
dependent
on us. We are
depended
on
him. He is
not
an
interrupter
on
our
work.
He
is the
purpose
of
it.
We
are
not
doing
a
favour
by
serving-him.
He
is
doing
us a
favour
by
giving
us
an
opportunity
to
do so.
Tata
Steel has issued
several
posters
to
bring
about
customers
consciousness
as
a
means
of
change.
However,
a
large
international market still awaits
and
so
does
tough
competition.
PERFORMANCE ETHICS
PROGRAMME
Performance Ethics
Programme
for executive
category
came
into
being
as
a
follow
up
on
Mckinsey
report
on
transformational
exer
cise and
restructuring
of the
organisation
to
convert Tata
Steel
into
a
high performing
organisation.
The
process
requires identifying
igh
impact positions
and
staff
the
positions
with
best suited
persons.
All
these
positions
would
have
greater
accountability,
autonomy
and
higher profit
and
loss
responsibility.
The
move
is
to
break
away
from
functionally organised
system
with
individuals
reporting
to
their functional
superiors
to
designing
structure based on business
units
as
profit
centres.
Each
business
unit
has
its
own
autonomous
set
up
and
greater
freedom
to
develop
its
own
agenda
and
targets
keeping
in
mind
the
customers
and
business orientation.
The choice
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368
Indian
Journal
f
ndustrial
Relations
of staff is
based
on
objective
and
merit-based
assessment
process
with
the
support
from
a
qualified
external
agency.
While
the
new
structure
ould
come
into
effect
from
April
1,
2001
staffing
ould
be
done
in
three
cycles.
Cycle
1
for
the
first
00
positions
has
been
completed by
November
2000.
Cycle
2
for
next
250-300
positions
will
take
place
during
November-January
2001
and
cycle
3
in
the
second
half
of 2001.
In
terms
of the
actual
mechanics,
each
department
head
signs
an internalMoU with theCEO as a
promise
todeliver. In
addition,
internal MoUs within
the
department,
across
departments
and
with
customers
for
compliance
on
efficiency
nd
quality
and with
provi
sion
of
constant
review and
continuous
monitoring
are
to
be
signed.
The
focus
is
to
give
what
was
not
given
last
year.
All executives
are
given
KRAs
and balance
code
cards for
people
upto
divisional head
quarters
are
to
be maintained.1
No value
or
low
value
items would
be
reduced
in
future
and
eventually
eliminated. Since
all
this
is
done
to
help employees
to
make best
use
of
operating
units,
which
are
young
both
in
terms
of
age
and
facilities,
incentives
are
to
be
given
on
the basis
of
performance.
Keeping
the focus
on
demand,
competition
and
cost
conscious
ness
at
the
level
of
workers cluster
manning
is introduced. This
is
to
help
control
overtime
and
acting
allowance
and
to correct
soul
destroying job
without much
challenge .
These
are
self-managed
teams
loaded with
empowerment,
discretion,
and
room
for
innovativeness.
In
all
cases
Tata
Steel standards
(JRQM),
same
as
ISO,
are tobe
applied.
A fall-outeffect f the
restructuring
as led
to
debureaucratization
process.
Number
of
positions
is
reduced,
decision
making
is
pushed
down
to
lowest level
and
paper
move
ment
has been
minimized.
RIGHTSIZING
As
on
January
1,1994
Tata
Steel
had
78,276
employees
on
its
pay
roll.
In
order
to
best
fit
the
number of
employees
with the
require
ments of
jobs,
Tata Steel startedtheprocess of
right izing
eventually
bringing
down the
workforce
to
50,910
as
on
October
1,
2000.
The
attempt
is
to
further
reduce
it
to
48,000
level
in
near
future. How
were
they
able
to
downsize
given
a
very
strong
workers
union
on
the
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Case
Study
369
one
hand,
and
a
tradition f
guaranteed
employment
to
thewards of
the
employees
on
the
other?2
According
to
the
General
Secretary
of
Tata
Workers'
Union,
the
dissociation
was
not
painful
because
through
negotiations
the
union
got
a
good
deal
for
its
members.
The
good
deal
basically
refers
o
Early
Separation
Scheme
pro
posed
by
Tata
Management. According
to
this scheme
employees
who
became
surplus
as
a
result of
restructuring
exercise
were
given
the
option
to
performany duty
not
necessarily
that
for hich
they
were
hired
or
take
a
pension.
The
pension
amount
varied with the
age
of
the
employee
and
the
years
of
service.
But all
of
them
were
assured
the
pension
upto
the
age
of
sixty.
Thus those
with
less
than
40
years
of
age
and
less
than
10
years
of service
were
offered
a
monthly
pension equivalent
to
thebasic
and
DA
of
last
drawn
sal
ary,
those
upto
the
age
of
45
years
got
1.25 times and
those
crossing
the
age
of 45
years
received 1.50
times
the last
drawn basic and
DA.
In
addition,
they
ere
provided
medical
facilities
t
company's
hos
pital/dispensary,
loan
of
Rs.
2
lakhs
to
start
a
business,
and
prefer
ence
in
assigning
a
kiosk
in
Jamshedpur
area.
ROAD THROUGH
EDUCATION/TRAINING
The
road
to
change
and
to
make Tata
Steel
a
knowledge
based
learning
organisation
took
many
shapes
and
terms.
Perhaps
one
of
the
more
significant
endeavours
to
change
came
from education
and
training
perpetuated
by
three
agencies.
One of themost influential
attempts
tomodernize was fostered
through
an
exposure
to Tata
Heritage,
Technology
and
Community
Centre
housed
in
Russi
Mody
Centre
forExcellence.
It
provides
consolidated
information
on
the
House
of
Tata. In
addition
it
has
the first
business archive
in
India and
16
professional
associations
housed under
a
single
roof
in
an
ambience of
ancient
civilizations
of
Egypt,
Greece
and
Babylon.
The
Centre
is
journey throughhistory
of
the
achievement
of
House of Tatas
and
a
learning
experience
of
how
dreams
got
converted
to
realities.
It
has
tremendous
educa
tional value for all interested in
change.
The
second
agency
is the Information
Department.
It
was
set
up
in
1955with the
principle
objective
of
keeping
the
technical,
re
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370 Indian
Journal
f
ndustrial
Relations
search and
managerial
personnel
abreast in theirfieldof
knowledge
through
its
libraries
and
publications.
Information
Department
runs
96
libraries
in
Jamshedpur
and 51 libraries
outside
Jamshedpur.
It
collects,
processes
and
disseminates
information
in
the field of
iron
and
steel
and
allied
subjects.
It
has
over
2.5 lakh
books,
subscribes
to
large
number
of
technical
journals,
has
inter
and
intranet
facility,
on-line
catalogue
for
books,
videos
cassettes,
CD
Roms
and music
CDs.
It
also
has
a
book
bank scheme for
employees'
children
of
2nd
standard
and
above,
and
a
kid's
corner
for
showing
them
educa
tional films.Since
knowledge
is the
greatest
driver for
change
ithas
a
budget
of
Rs. 1.6
crores.
The
third
agency
of
knowledge
dissemination
is
TISCO
Man
agement
Development
Centre,
which
arranges
training
programmes
for
Tata
Steel
employees.
In
a
given
year
it
organises
more
than
70
programmes
on
different
aspects
of
management
and
each
of these
programmes
is
offered
several
times
in
the
year.
Since
the focus
of
management
has
shifted
to
change, special one-day
programmes
on 'Modernization ofMind:
Thinking
Away
fromMindset' are or
ganised.
Many
of
the
training
rogrammes
listed
in
their
directory
have been
conceived
to
respond
to
new
ways
of
thinking
hich have
emerged
as a
result
of
dialogue
and
discussions
among
the
Tata
Steel
employees
in
various fonims
referred
to
in
the section
on
reaching
out.
CO-DETERMINATION
Tata Workers' union is one of the earliest trade unions in India.
It's
history
dates back
to
1920.
Over
the
years
it
has
seen
the
in
volvement of
political
stalwarts
(e.g.
C.
F.
Andrews,
CR. Das and
Motilal
Nehru)
and
office
earers of
such
calibre
as
Subhash Chandra
Bose,
Prof.
Abdul Bari and
Mr.
Michael
John.
Except
for
13
month
long
strike
during
1928
there
has
been
no
major
industrial strife
t
Tata
Steel
during
the
last
70
years.
While
there
re
many
registered
unions
in
Tata
Steel,
Tata
Workers'
Union
is
the
sole
bargaining
agent.
The Union
has
been
able
to
get
some
visible
benefits
for the
workers
(e.g. Joint Councils,
recognised
grievance
procedure,
higher wages
and
better
community
and
social
life).
The
management
has
al
ways
been
enlightened
and
has been
able
to
provide
many
labour
welfare
measure
much before
they
were
enforced
by
law
(See
Ex
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Case
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371
hibit
1).
Community
and health facilitiesare
way
above those of
fered
by
any
comparable
organisation.
Yet
there is
some concern
about the
quality
and
cost
of these
services.
The
proactive
attitude
of
management
is
visible
in
open
sharing
of
information
with
the elected
members
of
the
Union,
6 times
a
year
followed
by
lunch.
Union
leadership
is
so
impressed
by
man
agement
transparency
that its
secretary,
while
talking
about
Dr.
Irani,
said Yeh Shaks Imandari
Se
Sach BoltaHai
(This
man
honestly
talks
the truth).
When themodernization
plan
started
in
1980 both
union and
management
agreed
on
no
retrenchment,
redundant
labour
to
be
retrained
and
redeployed
in
suitable
jobs.
Talking
aboutmoderni
zation,
Mr. D.K.
Singh,
General
Secretary
said that
Union
agreed
to
bring
new
technology
because
it
was
consulted. We
co-operated
because
we
wanted
to
serve
the
company
and
we
got
a
good
deal.
There
was
continuous
dialogue,
openness
and
transparency
and
schemes
suggested by
management
were not very
painful
towork
ers.
We
found
a
common
path by
joint
consultationwhich
has
been
a
culture
in Tata
Steel. The
relationship
between
union
and
man
agement
is
best
vocalized
by
Mr.
Singh
when he
said
we
have dif
ferent
paths
but
our
destiny
is
same.
REACHING OUT
Consistent
with
the
policy
of
openness,
trust
and
transparency
as a vehicle of
change,
Tata Steel introduced several programmes of
sharing
information ith the
employees
and
the
community
with
the
intention
f
sharing
truth
nothing
but
the truth.Somewhere
around
themiddle
of
1994
the
idea of
organising
Employee
Aware
ness
Programme
(EAP)
was
initiated.
In
May
1995
the
first
ormal
EAP
was
launched
in
Medium
and
Light
Structure
Mill.
The
topics
covered dealt
with
such
themes
as
personnel
policies,
safe
habits,
training
and
career
development,
health
and
healthy
life,
occupa
tional
health,
welfare
amenities,
work
discipline, suggestion
system
andworking towardshigherproductivity.
Wife ?f
MD
initiated
omestic
Management Programme
where
wives
of
the
employees
go
through
three nd
half-days
programme
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11/14
372
Indian
Journal
f
ndustrial
Relations
with
inputs
provided
on
such themes
as
budget,
safety, ygiene
and
child welfare.
In
addition,
wives
of
the
employees
are
invited
to
visit husbands' work
place
and
have lunch
with them
in
company
cafeteria.
They
are
informed
abut
safety
and
productivity
by
ex
perts.
The
aim is to
involve families of
the
employees
in
affecting
change.
This
programme goes
on
every
day
and
the
attempt
is
to
cover
all
50,000
employees'
wives
in
the
next
2-3
years.
The
specific
purpose
is
to
inspire
their
role
and
integrate
them into the
change
takingplace
in
company
and
society.
Tata
Steel's
endeavour
is
to create
awareness
at
the lowest
level
in
the
company
and
community
at
large
because
'Modernization
of
Mind'
as
a
concept
must
reach
to
a
substantial
segment
of
commu
nity.
In
addition
to
the
above-mentioned
programmes,
the
MD
has
regular
meetings
with
the
female
employees,
dialogue
with senior
citizens
in
the
city
of
Jamshedpur.
It
has also
started
the
practice
of
naming
'Person of theMonth'.
Respect
is
given
to
the
union and
regular meetings
with the elected members
of the
union
are
organ
ised.
Mr. Ratan
Tata
goes
to
the
union
instead
of
calling
them
to
his
office
during
his visits
to
Jamshedpur.
SUCCESS
INDICATORS
Phase
5,
Modernization of
Mind,
formally
egan
on
April
1,1999.
During
the
year
and
a
half
the
picture
has
drastically changed.
Cus
tomer
awareness
is
great,
decision
making
has
been
pushed
to
the
lowest
level,
bureaucracy
has been
demolished,
levels
are
reduced
from13 to4
among
officers,
level
reports
toE level
despite
the
fact
that
there
re
5 levels
within O
Category. Employment
of
chil
dren
has been
stopped
and thanks
to
ESS
work
force
s
reduced
to
50,910
without
any
ripple.
Seven
to ten
percent
of the
profit
goes
to
township
and
community
development;
38
per
cent
of
all
employ
ees
are
covered
in
improvement
projects
and all
departments
are
getting
ISO
ratings.
There has been
no
major
disruption
by
way
of
strike
or
gherao
during
the last
70
years.
There
is
a
general
accept
ance
of
change
among
the
employees
and
they
demand
and
desire
to
learn
beyond
their
regular
jobs.
There is
greater
transparency
in
the
system.
Emphasis
has shifted
to
productivity,
profit
and
cus
tomer
instead of
products
and
opportunity
for
experimentation
and
openness
to
accept
ideas
(learning humility).
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Case
Study
373
The concrete indicators and their
growth
over the 4 years pe
riod
as
reported
in
Annual
Report
1999-2000
are
presented
below:
Indicators
qf
Growth
_1997-98
1998-99
1999-2000
Overall
output
(million
tonnes)
1.Hot
metal_351_^63_3.89
2.
Crude
Steel_^_323_3?6_3.43
3. Works Saleable Steel
3.01
_311_3.29
Works Saleable Steel
(million
tonnes)
1.
Production
_
3.01
_3.11
3.29
2.
Despatch_^_3?l_^09_3.30
Sinter Production
3.373.45 3.69
(million tonnes)
Coke Production
1.83
.96
2.12
(million tonnes)
Specific
Lubrication 1.08
.88
0.70
Consumption (Kg/tss)
Water
Pollution
0.27
0.30 0.21
(Kg/tss)
_._
Inventory
Turnover
Ratio
(%)_16.45_16.55_14.70
Solid
Waste
Utilization
(%)
66.08
67.00
8.24
In
addition,
savings
through suggestions
improved
from523
lakh
in
1997
to
Rs. 720
lakh
in
1998
and Rs.
865
lakh
in
1999.
During
1999-2000
rolling
mill
No.2
was
phased
out and
Tata
Steel
achieved
full
capacity
utilisation
in
all
new
production
units
such
as
coke
plant
No.2,
hot
strip
mill,
L.D.
shop
No.
2
and Slab Caster
in
the
very
first
year
after
modernization. Cluster
manning
has
been
introduced
in
13
departments
covering
5147
employees.
To
tal operation performance programme covered all major produc
tion and
services
department
in
the
norms
during
1999-2000.
Coke
quality
in
terms
of
strength
is
best
in
the
world,
it has
achieved
lowest
cost
in
steel
production
in
the
world,
and
it
pro
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374 Indian
Journal
f
ndustrialRelations
duces
the
fastestmillion
tonnes
of
iron in
the
new
plant
in
the
world.
The
largest
private
steel
producer
in
the
country,
ata
Steel
is
the
lowest
cost
producer
or
Steel. The
company
may
not
be
making
as
much
profit today
as
it
hoped
to
but
the
real
test
would
come
later
when
it
would have international
competition.
There
is
also
a
lurk
ing
doubt
in
theminds of
some
executives
whether
the
attempts
to
modernize
mind
would sustain
over
a
longperiod
of
time.
The
spirit
and
direction
of
Modernization
of
Mind
is
best
sum
marized
in
the
Tata
Steel Information
Bulletin,
January-March
2000
which
claims
that
Perfection
in
any
endeavour is
an
aiming
point,
not
a
starting
oint.
Let
thedesire for
t
push
you
but
don't
let
the
absence
of
it
stop
you.
If
you
are
going
to
get
any
thing
done
you
must start
some
where. More
specifically,
you
must
start where
you
are. For Tata
Steel
the
journey
has
begun
but
the
road
is
long
and
winding
and
the
destination
is far
away.
NOTES
1.
All executives
at
Tata
Steel
have
been recommended
to
read
a
book
Who
Moved
My
Cheese
by
Spencer
Johnson.
The book deals
in
a
parable
fashion
on
how
to
anticipate
change,
adapt
to
change quickly,
enjoy change
and
be
ready
to
change
quickly
again
and
again.
2.
There
are
instances in
Tata
Steel
of
having
fourth
generation
workers
employed.
However,
this is
changing
now. Merit instead of
kinship
is
given
weightage
in
employment.
REFERENCES
Harris,
Frank,
(1958),
Jamsetji
usserwanji
Tata:A
Chronicle
of
His
Life,
Blackie and
Sons
Limited,
Bombay.
Lala,
R.
M.
(1981),
The Creation
of
Wealth,
IBH
Publishers Pvt.
Ltd.,
Bombay.
Pandey,
S. N.
(1989),
Human
Side
of
Tata
Steel,
Tata McGraw
Hill,
New
Delhi.
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Case
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375
EXHIBIT
1
:
Labour Welfare
Measures
in Tata
Steel
Welfare
measures-
Tisco Intro. Enforced
Legal
Measures
by
Law
Eight
hour
Working
Day_1912_1948
Factories
Act
Free M?dical Aid
1915 948
Employees
State
Insurance
Act
Establishment ofWelfare 1917 948 FactoriesAct
Department
Schooling
facilities for 1917
Children
Formation
of
Works
Committee for
handling
complaints,
service
conditions
and
grievances
Leave with
pay
1920
948
Factories Act
Workers
Provident Fund 1920
1952
Employees'
Scheme Provident Fund
Workmen's Accident
1920 1924
Workmen's
Compensation
Scheme
Compensation
Act
Technical
Institute
for
1921
1961
Apprentices
Act
Training
of
Apprentices,
Craftsmen
&
Engineering
Graduates
Maternity
Benefit 1928946
Bihar
Maternity
BenefitAct
Profit
Sharing
Bonus_1934_1965
Bonus
Act_.
Retiring
Gratuity
1937
1972
Payment
of
Gratuity
_Act_
Ex-gratia
Payment
for
Road
1979
accident while
coming
to
or
returning
from
duty
Social
Audit
_1980_-_First
in
India
Pension
Scheme
1989
Social
Responsibility
as
a
1988
Key
Business
Process
1919 1947
Industrial
Disputes
Act