INDUSTRY PROFILE• The history of the modern steel industry began in the late 1850s,• Bulk production of steel began as a result of Henry Bessemers development of the Bessemer converter in 1857.• Expected to become the 2nd in rank by the year 2015 as predicted by the analysts.• It is expected that the growth rate of the consumption of finished steel would grow at CAGR (Compound Annual Growth Rate) at around 7% in the financial year 2012 to 2014.
A Rich Heritage: A flashback album of SAIL• Hindustan Steel Private Limited was set up on January 19, 1954.
Expanding Horizon (1959-1973)• Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela.• For Bhilai & Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry.• From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in December 1959.
Year Location Capacity (MT )December 1961 Bhilai and Rourkela Steel Plants 1 MTJanuary 1962 Durgapur Steel Plant 1 MTThe crude steel production of HSL went up from 0.158 MT (1959-60) to 1.6MTJanuary 1964 Bokaro Steel Limited, ---September 1967 2nd phase of Bhilai Steel Plant ---February 1968 Rourkela Steel Plants (last unit-Tandem Mill ) 1.8 MTAugust 1969 Durgapur Steel Plant 1.6 MT1968-69 Bhilai Steel Plants 2.5 MT1968-69 Rourkela Steel Plants 1.8 MT1968-69 Durgapur Steel Plant 1.6 MTcrude steel production capacity of HSL was raised to 3.7 MT in1968-69 and subsequently to 4MT in 1972-73.
SAIL VISIONTo be a respected world-class corporation andleader in India steel business in quality,productivity, profitability, and customersatisfaction.
CREDO We build lasting relationships with customers based on trust and mutual benefit. We uphold highest ethical standards in conduct of our business. We create and nurture a culture that supports flexibility, learning and is proactive to change. We chart a challenging career for employees with opportunities for advancement and rewards. We value the opportunity and responsibility to make a meaningful difference in peoples lives.
CORE VALUES OF SAILCustomer satisfaction.Concern for people.Consistent Profitability.Commitment of Excellence.
THE SEVEN C’s OF SAILConsistent Quality.Committed Delivery.Customized Product Mix.Contemporary Products.Competitive Price.Complaint Settlement.Culture of Customer Services.
MOU’s & JOINT VENTURESSAIL has signed 7 MOU’s with several Indian and foreign companies to pursue its strategic interests.SAIL has promoted 14 joint ventures in different areas ranging from power plants, mining, cement, e-commerce, etc.OWNERSHIP & MANAGEMENTThe Government of India owns about 86% ofSAILs equity and retains voting control of theCompany. SAIL, by virtue of its ‘maharatna’status, enjoys significant operational andfinancial autonomy.
BHILAI STEEL PLANTLocated in Bhilai, 40kms west of Raipur, thecapital city of C.G., along the Howrah-Mumbairailway line and the Great-Eastern highway.It covers an area of about 36 sq.kms.
Conti… Bhilai Steel Plant - a symbol of Indo-Soviet techno-economic collaboration, is one of the first three integrated steel plants set up by Government of India to build up a sound base for the industrial growth of the country. It is a major exporter of steel products with over 70% of total exports from the SAIL being from Bhilai. In the 2004-05 fiscal year, it was the Steel Authority of India Limiteds most profitable plant.
AWARDS AND ACCOLADES (1959-2010)BSP was adjudged winner of The Prime Minister’s Trophy for the best integrated Steel Plant in the country for 9 times out of a total of 16 times that it has been awarded.BSP has won the Greentech Environment Excellence Platinum Award for the year 2010 in Metal & Mining sector. The award was instituted by Greentech Foundation, New Delhi. The platinum award is the highest in its category.
Conti… Bhilai Steel Plant bagged the prestigious “Golden Peacock National Quality Award 2011” conferred by Institute of Directors on 28th January, 2011. Ministry of Labour & Employment, Govt. of India announced ‘National Safety Award’ for 2008 for all types of industries of India, based on achievements in safety by the industries. 7 departments of BSP have won the prize on the parameters like ‘Longest Accident Free Period’ and ‘Less Severity Rate.
Conti… BSP has been awarded the Golden Peacock Eco-Innovation Award 2010 instituted by World Environment Foundation. BSP has won the Golden Peacock Award for Corporate Social Responsibility for Year 2010. Shri V K Arora, ED I/c, BSP has been honoured as one of the Eminent Engineering Personality of the Country by the Indian Institute of Engineers at the Industrial Engineering Congress held at Kochi, Kerala on 17th Dec 2010.
Conti… PM’s Shram Awards for 2009 – 15 employees in three groups have been awarded the prestigious ShramVir and Shram Shree Award for Year 2009. Vishwakarma Puraskar for 2009 - A total of 36 employees in seven groups have been awarded the Vishwakarma Rashtriya Puraskar for 2009. Chairman’s Trophy for Young Managers- three young executives of BSP won the Chairman’s Trophy for Young Managers 2009-10. This is the 3rd time that managers from BSP have won this trophy.
Conti… Apart from above, numbers individual group awards have been won time by BSP employees at National level in the field of Quality Circles, Management , Metallurgy, Sport & Cultural Activities etc.
NEW PRODUCTS DEVELOPEDTo meet the customers’ demand and to increasethe market share, BSP has fulfilled its plan todevelop one product each month. A total of 12new products were developed in the financialyear 2010-11.
INTRODUCTION TO HRM“People are our most valuable asset” is acliché, with which no member of any seniormanagement team would disagree.
FUNCTIONS OF HRMFollowing are the various functions of HumanResource Management that are essential for theeffective functioning of the organization:1. Recruitment2. Selection3. Induction4. Performance Appraisal5. Training & Development
AREAWISE MANPOWER OF B.S.P. (as on 01.04.2011)
AREAWISE MANPOWER OF B.S.P. (as on 01.04.2011)
“PERFORMANCE APPRAISAL”According to Flippo, “Performance Appraisal isthe systematic, periodic and an important ratingof an employee’s excellence in matterspertaining to his present job and his potentialfor a better job.
CHARACTERISTICS1. Performance Appraisal is a process.2. It is the systematic examination of the strengthsand weakness of an employee in terms of his job.3. It is scientific and objective study. Formalprocedures are used in the study.4. It is an ongoing and continuous process whereinthe evaluations are arranged periodically accordingto a definite plan.5. The main purpose of Performance Appraisal is tosecure information necessary for making objectiveand correct decision an employee.
PROCESSThe process of performance appraisal:1. Establishing performance standards2. Communicating the Standards3. Measuring Performance4. Comparing the actual with the standards5. Discussing the appraisal6. Taking Corrective Action
LIMITATIONS1. Errors in Rating.2. Lack of reliability.3. Negative approach.4. Multiple objectives.5. Lack of knowledge.
PERFORMANCE MANAGEMENT(i) Identifying employees for career planning and development, promotion, job rotation and enrichment.(ii) Determining training needs for further improvement in performance.(iii) Motivating employees by indicating their performance levels.(iv) Determination of employee compensation & reward.
Salient Features of the new EPMs1. Online Performance Management System.2. Goal Alignment cascade workshops forPerformance Planning which would includesetting of departmental goals & therebyfinalizing the individual KPAs.3. Direct correlation of performance assessmentwith Key Performance Areas.4. KPAs would be quantifiable and weightedwith clear cut evaluation criteria.
Conti… 5. Online performance diary available for all executives with 24 X 7 access. 6. Independent assessment by Reporting officer and Reviewing officers. 7. Assessment on Performance, Potential, Competencies and Values. 8. Two separate grading, one on performance factors and other for competencies (including potential & Values).
Conti… 9. Transparency through communication of the final grading on performance to the executives. 10. Performance Management Committee (PMC) consisting of HOD, Reporting officer and Reviewing officer to decide the final ratings of the executives. 11. System of “Forced Distribution” has been dispensed with.
METHODS OF PERFORMANCE APPRAISALEASY APPRAISALGRAPHIC RATING SCALEFIELD REVIEWFORCED-CHOICE RATINGMANAGEMENT BY OBJECTIVES
Benefits of Performance Appraisals Measures an employee’s performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning.
Conti… Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organization’s philosophies, values, aims, strategies, priorities, etc among its employees. Helps in counseling and feedback.
RATING ERRORS IN PERFORMANCE APPRAISALSLeniency or severityCentral tendencyHalo errorRater effectPrimacy and Regency effectsPerformance dimension orderSpillover effect
Conti… Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organization’s philosophies, values, aims, strategies, prioritie s, etc among its employees. Helps in counseling and feedback.
METHODOLOGYThe study is based on personal decision, interview schedules, documentary observation; the data has been collected from the executives of the organization and through the published sources.
• QUESTIONNAIRE method is used in this project with special reference to direct questionnaire method.• Sources of data• 1. Primary data through questionnaires.• 2. Secondary data through literature.• 3. Introduction of BSP through books & literature.
AWARENESS ABOUT PERFORMANCE EVALUATION SYSTEM1. Are you aware of any performance evaluationsystem in BSP? Yes 56 No 04
2. Are you aware there are separate system ofperformance evaluation for executives and nonexecutives in BSP? Yes 52 No 08
3. Are you aware that employees are notpromoted due to low rating in performanceevaluation system in BSP? Yes 42 No 18
4. Do you know that SAIL has introduced onlineEPMS (Executives Performance ManagementSystem) for executives of the SAIL? Yes 46 No 14
Overall Average Awareness About PerformanceEvaluation System
Effectiveness of Performance Evaluation System 1. Are you satisfied with performance evaluation system of BSP? Yes 38 No 22
2. Ho much performance evaluation helpimproving your work? To a large extent -10 To a some extent -38 It does not improves -02 I can not say -10
3. What should be the frequency of performanceevaluation? Annually- 32 Half yearly- 12 Quarterly -12 Monthly- 4
Result about performance evaluation1. Is performance evaluation is basis forpromotion in BSP? Yes 42 No 18
2. Do you get any reward on the basis of goodperformance rating? Yes 24 No 36
3. Do you get any training on the basis of goodperformance? Yes 22 No 38
4. Is job rotation done on the performanceevaluation? Yes 28 No 32
5. If performance of an employee is rated verylow what action should be taken? Job rotation- 18 Stopping promotion- 36 Imparting training- 06 No action require -00
LIMITATIONSThere was limited time provided for the completion of the project.Some of the data necessary for the preparation of the project was not provided by the BSP.The current year Balance Sheet was not provided by the BSP as it has not been approved by the SAIL.Lack of personal interaction with the mentors.
CONCLUSIONMost of the employee of BSP aware about performance appraisal system and also there are most of the employee satisfied about this system.In BSP if the performance rating of the employee would be very low then the promotion of the employee will not be done and also there is separate performance evaluation system for the executives & Non- executive employee.
CONCLUSIONOn the basis of this project, performance evaluation system is very effective system for the employee of BSP. On the basis of the performance evaluation system the employee promoted and also it measure the work of the employee.So we can say that it helps in improvement of the work. So it is very effective to find the organizational goal.
CONCLUSIONPerformance evaluation system is helpful to promote the employee on the basis of good performance. Also employee can get reward for the good performance.BSP on the basis of the performance evaluation, doing job rotation.
CONCLUSIONThe ingredients would also be very important for the evaluation of the performance. In this project we are taking eight types of the ingredients. Also attendance is most important ingredients for the performance evaluation system.Knowledge of work, quality of output, quality of work, training and interpersonal skill is the most important ingredients for the performance evaluation system.
SUGGESTION & RECOMMENDATION A proper performance evaluation system should be taken by the organization to achieving there organization goal. All the system taken by the organization should be aware there own employee and also giving knowledge about there profit to each employee for the proper satisfaction of the employee. The performance evaluation system should be the basis for the promotion and any other incentives for the executives and non executives.
SUGGESTION & RECOMMENDATION The frequency of performance evaluation system should be on annually basis. It is also necessary that if the performance of the employee would be very good then the employee get reward and training and got some incentives for there well performance. The ingredients of performance evaluation system should be very clear and attached with the performance since it play a very important role in the case of performance evaluation system.